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2023
ANNUALREHENSIVE
FINANCIALCOMP REPORT
is
AUBURN
FOB R ENDED DECEMBER 31, 2023 ,,ASH,NGTON
CITY OF AUBURN
WASHINGTON
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year January 1, 2023 through December 31, 2023
CITY OF
AutuR
WASHINGTON
Prepared by
City of Auburn Finance Department
Jamie Thomas, Finance Director
CITY
JBURN
WASHINGTON
City of Auburn: 2023 Annual Comprehensive Financial Report Table of Contents
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended December 31, 2023
TABLE OF CONTENTS
I. INTRODUCTORY SECTION Page
Title Page
Table of Contents
City Officials 1
Organizational Chart 2
Letter of Transmittal 3
Certificate of Achievement 10
II. FINANCIAL SECTION
Auditor's Report 11
Management's Discussion and Analysis 15
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position 33
Statement of Activities 34
Fund Financial Statements:
Governmental Funds
Balance Sheet 38
Reconciliation of Balance Sheet of Government Funds to the Statement of Net Position 39
Statement of Revenues, Expenses and Changes in Fund Balances 40
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Government Funds to the Statement of Activities 41
Statement of Revenues, Expenses and Changes in Fund Balances— Budget to Actual:
General Fund 42
American Rescue Plan Act (ARPA) Fund 43
Arterial Street Fund 44
Proprietary Funds:
Statement of Net Position 46
Statement of Revenues, Expenses, and Changes in Fund Net Position 47
Statement of Cash Flows 48
Fiduciary Funds:
Statement of Fiduciary Net Position 52
Statement of Changes in Fiduciary Net Position 53
Notes to the Financial Statements 55
Required Supplemental Information
Managerial Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances— Budget to Actual:
Cumulative Reserve Fund 116
Fire Pension Fund 117
Schedule of Proportionate Share of the Net Pension Liability PERS 1 119
Schedule of Proportionate Share of the Net Pension Liability PERS 2/3 119
Schedule of Proportionate Share of the Net Pension Liability LEOFF 1 119
Schedule of Proportionate Share of the Net Pension Liability LEOFF 2 119
Schedule of Employer Contributions PERS 1 121
Schedule of Employer Contributions PERS 2/3 121
Schedule of Employer Contributions LEOFF 2 121
City of Auburn: 2023 Annual Comprehensive Financial Report Table of Contents
Schedule of Changes in Total Pension Liability and Related Ratios 122
Schedule of Changes in Total OPEB Liability and Related Ratios 123
Page
Combining and Individual Fund Financial Statements and Schedules
Non-Major Government Funds:
Combining Balance Sheet 126
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 127
Non-Major Special Revenue Funds:
Combining Balance Sheet 130
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 132
Schedule of Revenues, Expenditures, and Changes in Fund Balances— Budget to Actual:
Arterial Street Preservation Special Revenue Fund 134
Business Improvement Area Special Revenue Fund 135
Drug Forfeiture Special Revenue Fund 136
Hotel/Motel Tax Special Revenue Fund 137
Housing &Community Development Special Revenue Fund 138
Local Street Special Revenue Fund 139
Mitigation Fees Special Revenue Fund 140
Recreation Trails Special Revenue Fund 141
Non-Major Debt Service Funds:
Combining Balance Sheet 144
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 145
Capital Project Funds:
Combining Balance Sheet 148
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 149
Permanent Fund:
Balance Sheet 152
Statement of Revenues, Expenditures and Changes in Fund Balance 153
Non-Major Enterprise Funds:
Combining Statement of Net Position 156
Combining Statement of Revenues, Expenses, and Changes in Net Position 157
Combining Statement of Cash Flows 158
Internal Service Funds:
Combining Statement of Net Position 162
Combining Statement of Revenues, Expenses, and Changes in Net Position 163
Combining Statement of Cash Flows 164
ii
City of Auburn: 2023 Annual Comprehensive Financial Report Table of Contents
Ili. STATISTICAL SECTION
Schedule Page
Net Position by Components 1 168
Changes in Net Positions 2 169
Fund Balances, Government Funds 3 170
Changes in Fund Balances, Government Funds 4 171
Tax Revenues by Source, Government Funds 5 172
Assessed Value by Type 6 173
Property Tax Data 7 174
Property Tax Levies and Collections 8 176
Principal Taxpayers— Property Taxes 9 177
Retail Tax Collections by Sector 10 178
Ratios of Outstanding Debt by Type 11 179
Computation of Legal Debt Margin 12 180
Legal Debt Margin Ratios 13 180
Computation of Net Direct and Estimated Overlapping Debt 14 181
Ratios of Net General Bonded Debt to Assessed Value 15 182
Pledged Revenue Bond Coverages 16 183
Population, Income and Housing Trends 17 184
Major Employers 18 185
Staffing Levels by Department 19 186
Operating Indicators by Department 20 187
Capital Asset Indicators by Department 21 188
Utility Customers by Customer Class 22 189
iii
City of Auburn: 2023 Annual Comprehensive Financial Report Table of Contents
*
*
ACITY of
IB u RN*
WASHINGTON
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ACITY OF
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Mayor Nancy Backus
Serving as Mayor since 2014
City Council 2004-2014 .
AUBURN CITY COUNCIL
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Larry Brown Clinton Taylor Hanan Amer Kate Baldwin
Deputy Mayor Serving since 2024 Serving since 2024 Serving since 2021
Serving since 2018
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Tracy Taylor Cheryl Rakes Yolanda Trout-Manuel
Serving since 2024 Serving since 2023 Serving since 2014
DEPARTMENT DIRECTORS
Administration I Dana Hinman Human Resources I Candis Martinson
Anti-Homelessness I Kent Hay Innovation and Technology I David Travis
Chief Equity Office I Brenda Goodson-Moore Parks,Arts&Recreation Daryl Faber
City Attorney I Jason Whalen Police I Mark Caillier
Community Development I Jason Krum Public Works I Ingrid Gaub
Finance I Jamie Thomas
1
Citizens
City Council
Executive Assistant Mayor Outreach Program
Nancy Backus Administrator
Council Administrative
Assistant
Director of Administration Director of Community Development
Dana Hinman Jason Krum
Director of Human Resources and
Risk Management Director of Public Works
Candis Martinson Ingrid Gaub
Finance Director Police Chief
Jamie Thomas Mark Caillier
City Attorney Parks,Arts and Recreation Director
Jason Whalen Daryl Faber
Director of Anti-Homelessness Director of Innovation and
Kent Hay Technology
David Travis
Chief Equity Office
Brenda Goodson-Moore
2
�- * MAYOR NANCY BACKUS
CITY OF __J * ® 25 WEST MAIN STREET,AUBURN.WA 98001
A M �■ ! • d 11 253-931-3000
® AUBURNwA.GCv
WASHINGTON
September 23, 2024
Honorable Nancy Backus, Mayor
Members of the Auburn City Council
Citizens of the City of Auburn
25 W Main Street
Auburn,WA 98001
We are pleased to present the City's Annual Comprehensive Financial Report for the year ended
December 31,2023. We publish this financial statement in conformity with generally accepted accounting
principles (GAAP). It has been audited in accordance with generally accepted auditing standards by the
Washington State Auditor's Office.
Therefore,we issue and transmit to you the City of Auburn's Annual Comprehensive Financial Report for
the fiscal year ended December 31, 2023. This transmittal letter provides an overview of the report and
the financial condition of the City. It also provides insight into the history of the City and the economic
conditions affecting it, and describes the systems and controls employed by the Finance department.
The Annual Comprehensive Financial Report has several significant uses. First, it provides a general
overview of the City's finances to the general public and taxpayers. Second, it is referenced by bond
buyers and rating agencies to evaluate the City's fiscal stability and creditworthiness. Finally, the Annual
Comprehensive Financial Report is a series of financial statements that have been audited by the State
Auditor's Office and provides assurances that assets are safeguarded, and funds are expended as they were
legally appropriated in the biennial budget.
I. INTRODUCTION
A. Management Representation
The Auburn Finance Department prepared the report and accepts complete responsibility for the
accuracy, completeness, and fairness of presentation of the information included. The data is believed to
be accurate in all material respects, and it is believed that all significant information necessary for an
understanding of the affairs and financial condition of the City has been disclosed. The report has been
prepared in conformance with generally accepted accounting principles and in conformance with financial
reporting standards issued by the Governmental Accounting Standards Board (GASB).
City management has developed and evaluated a comprehensive internal control structure that is
designed to protect the City's assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of the City's financial statements in conformity with generally accepted
accounting principles. Because the cost of internal controls should not outweigh the benefits, the City's
internal control structure is designed to provide reasonable, rather than absolute, assurance that the
financial statements will be free from material misstatement. As management, we attest that, to the best
of our knowledge and belief, this financial report is complete and reliable in all material aspects.
3
City of Auburn: 2023 ACFR Letter of Transmittal
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter
of transmittal is designed to complement the MD&A and should be read in conjunction with it. Auburn's
MD&A can be found immediately following the independent auditor's report.
B. Organization of the Report
The report is divided into three sections: the Introductory Section,the Financial Section, and the Statistical
Section. The Introductory Section contains the table of contents, a list of the City's principal officials, an
organizational chart, this letter of transmittal, and the Certificate of Achievement for Excellence in
Financial Reporting from the Government Finance Officers' Association of the United States and Canada
for the 2022 Annual Comprehensive Financial Report. The Financial Section contains the Washington
State Auditor's Report, completed by the Washington State Auditor, Management's Discussion and
Analysis, Government-Wide Financial Statements, the Fund Financial Statements, Notes to the Financial
Statements and Other Required Combining and Supplemental Information. The Statistical Section,which
is unaudited, contains a range of statistical tables and charts that present various financial, economic,
social, and demographic data about the City. This information depicts various trends that have affected
the fiscal condition of the City over the last ten years. The data presented in this section complies with
the requirements of GASB Statement No. 44, Economic Condition Reporting:• The Statistical Section.
C. Reporting Entity
The City of Auburn was incorporated in 1891 and currently operates as a non-charter Code City under
the laws of the State of Washington. Code City status in Washington provides "home rule" authority to
cities. Auburn has a Mayor/Council form of government; the Mayor is elected and is the full-time Chief
Administrator. The seven-member City Council is elected at large, rather than by district. Members of
the City Council are responsible for establishing the general direction and policies for the City and for
providing the resources necessary to carry out those policies. As the City's chief administrator,the Mayor
is responsible for carrying out the policy and direction set by the City Council. This includes the
enforcement of laws and ordinances, the execution of contracts and agreements, and maintenance of
peace and order in the city.The City is located primarily in southern King County and a small northeastern
portion of Pierce County. These are the two most populous counties in the State of Washington,
comprising over 41% of the state-wide population. The City is strategically located in relation to the
labor and consumer markets of the two largest cities in the area: Seattle in King County and Tacoma in
Pierce County. Auburn currently serves approximately 88,750 people within its incorporated limits.
The City provides a wide range of services, both beneficial and necessary to its residents as well as to the
adjacent area. These services include police protection; parks and recreational facilities that include a
senior center, gymnasium, community and teen center, golf course and museum; land use management
and development regulation; infrastructure construction and maintenance; water, sanitary sewage
collection, storm drainage, and solid waste services; a general aviation airport; and a municipal cemetery.
The City is a member/owner of Valley Communications providing emergency 911 services and South
Correctional Entity (SCORE) providing jail facilities. Both these organizations provide services to other
owner/member governments and other non-owner/member governments as well through interlocal
agreements.
4
City of Auburn: 2023 ACFR Letter of Transmittal
II. ECONOMIC CONDITION
A. Summary of Local Economy
Auburn began as a small rural community founded on agriculture and the railroad, which maintained a
significant switching and repair facility. The City has grown significantly since World War II, both as a
residential community and as a commercial and industrial location. Auburn has become a significant area
for automobile sales and has also developed a substantial manufacturing and distribution base with the
largest employer being The Boeing Co.,which employs approximately 3,935 people at its Auburn facility.
Boeing is a worldwide supplier of aircraft and related products. At the start of 2023, Auburn was
providing approximately 43,916 jobs with an unemployment rate of 3.9%. By the end of 2023 the
unemployment rate had subsided to 3.8%, which is below both the national and state figures.
Auburn has enjoyed steady residential and industrial growth over the years as development has moved
outward from the major cities. Auburn is currently home to about 8,500 businesses and is the center of
the largest industrial complex in the Pacific Northwest. The City has a growing array of manufacturing
facilities, as well as distribution, wholesale, and retail operations. Auburn's transit-oriented district is
home to the MultiCare Auburn Medical Center, with a Trauma Level III emergency facility. This location
serves the local geographic area and employs approximately 1,500 people.
The City's total assessed property valuation has increased by 130% in 10 years from $7.4 billion in 2014
to $17.5 billion in 2023. However, in the State of Washington property tax is limited to 1% growth
year over year, despite the rising assessed valuations. The total property tax rate has decreased from
$2.17 per 1,000 in assessed valuation in 2014 to $1.39 per 1,000 in assessed valuation in 2023.
Sales tax revenue, excluding criminal justice and annexation sales tax credits, increased by $3.0 million
(11.5%) from 2022 to 2023, making 2023 the third year in a row for strong sales tax collections, largely
due to pent up demand and inflationary costs. Sales tax revenue constitutes about 21% of total General
Fund revenue.While the local economy is generally favorable,the City remains vigilant in its management
of expenses to ensure it lives within its means, particularly with the uncertainties related to concerns of
an impending recession.
Despite economic cycles, the City has continually focused on enhancing the quality of life in the
community and focusing on maintaining and redeveloping its aging infrastructure. For example, the
City's Local Street program is partially funded by dedicating 2.5% of utility taxes toward local roadway
improvements. The Arterial Street Program is funded by .1% sales and use tax enacted by the
Transportation Benefit District (TBD) ordinance.
The City's budgeting process is based on financial policies directed at conserving fiscal resources while
supporting programmatic strategies. Budget recommendations reflect a long-range analysis of fiscal
trends. These policies and practices have not only averted serious funding problems in the past but have
enabled the General Fund to remain on a firm financial footing during the most recent recession.
The City maintains a stable financial condition by managing expenditure budgets to available revenue
streams. All funds contain adequate balances, and the City's debt is manageable. The General fund
contains a satisfactory balance along with a reserve fund for stabilization, a significant Insurance fund has
been set aside for contingencies, and the Equipment Rental fund is adequate for vehicle replacement. The
Proprietary and Fiduciary funds are in satisfactory condition. The City completed a review of the City's
5
City of Auburn: 2023 ACFR Letter of Transmittal
water, sewer, and stormwater utility rates in 2022 and established rates to fund operating and capital
needs through 2024.
B. Future Economic Outlook
Auburn is in a continuous process of both short-term and long-term financial planning. Short-term
financial planning is inherent in the development of the City's biennial budget. Concurrent with the
biennial budget is the review of the City's long-term capital needs. Funding sources are assessed with the
development of the six-year Capital Facilities Plan. The capital facility plan is a component of the
Comprehensive Master Plan, which outlines how the City should look and function in twenty years and
creates a vision that can be realistically implemented. An integral part of this vision is determining how
to allocate the City's financial resources to achieve the desired goals.
The City has several long-term municipal planning and capital projects underway. These include
reconstruction of aged utility infrastructure and street improvements that include rehabilitation of local
neighborhood streets. These projects will improve mobility, will contribute to the restoration of a
North/South arterial corridor, and provide for greater recreational opportunities for the community.
These municipal projects, coupled with the new private sector developments described earlier, will help
ensure local economic growth continues, albeit not at the rate experienced in the late 1990s. The
challenge is to control costs that grow at a faster rate than revenue. Areas of concern are health care
costs, pension costs, other post-employment benefits (OPEB), and public safety costs related to
incarceration and labor contracts. Continuing to maintain service level in these sectors will draw valuable
resources from other areas such as infrastructure replacement and capital programs. As Auburn moves
forward, economic conditions will be continually monitored and adjustments to city spending, and
services made to maintain the City's financial health. Long-term plans will be focused on ensuring the
City continues to be an economically strong and viable city.
C. Tax Abatements
The multi-family property tax exemption program was codified as RCW 84.14 to incentivize residential
development in urban centers. Chapter 3.94 of the City Code defines the purpose of the program,
application procedure, project eligibility, and other processes to administer the exemption.
The program is set to accomplish goals and benefits such as:
• Encouraging the residential opportunities,
• Stimulating new construction for housing,
• Directing the future population growth into the City's downtown core,
• Achieving development densities that enhance the use of the community's mass transit
opportunities, and
• Promoting the community development and downtown core revitalization in fulfillment of the
city's downtown plan.
6
City of Auburn: 2023 ACFR Letter of Transmittal
The Community Development department oversees the compliance with requirements regarding the
muti-family housing property tax exemption. The following provides information on the exemption
amounts and the number of units available in return for the exemption:
Number of Property Tax
Year Exempted Units Abated
2023 481 $146,190
2022 481 148,754
2021 255 77,838
2020 255 80,734
2019 255 81,414
A use tax exemption was established for aerospace industry under the Washington State tax legislation.
Washington State Department of Revenue administers the state tax programs including use tax and its
exemptions.The Joint Legislative Audit and Review Committee,JLARC, reviews and evaluates aerospace
tax preferences. By law, the evaluation includes whether a preference achieves the Legislature's objectives,
who benefits, how much they save, and other factors. Per the Legislative Auditor's conclusion, the
program objectives have been met in three areas, including reducing the cost of doing business,
encouraging the continued presence of the industry, and providing jobs with good wages and benefits.
However, per the conclusion, it is unclear if the objective to maintain and grow Washington's aerospace
industry workforce has been met. Please refer to JLARC page at leg.wa.gov to obtain more information
about the program evaluation.
III. FINANCIAL INFORMATION
A. Cash Management
The City invests in U.S. Treasury and Agency Issues, Prime Bankers Acceptances, Time Deposits, and
Repurchase Agreements. Investment policies and procedures, established by the Mayor and adopted by
the City Council, require the City to establish a trustee to take delivery of all investment transactions at
time of payment. The City has contracted with the Bank of New York to provide delivery versus payment
trustee services on all government agency investments. The State of Washington maintains an investment
pool to provide economies of scale in investing to smaller-and medium-sized cities in the State. The City
uses this service for all funds not invested in longer-term securities. The pool operates under the same
legal restrictions that apply to all municipalities in the State and, consequently, uses the same instruments
as listed above. The State also takes delivery of all investment transactions.
The City has adopted a comprehensive investment policy statement to guide City investment practices.
These policies are closely patterned after the recommendations in Investing Public Funds published by the
Government Finance Officers Association (GFOA). Investments are restricted to less than five years in
order to maintain liquidity on all investments in all funds yet enable the City to take advantage of the
yield curve. Fiduciary funds,which involve long-term reserves and require minimal liquidity, are invested
for longer time periods. The City undertakes repurchase agreements only with financial institutions that
offer the City full protection in the event of default, by providing the delivery of the underlying security
to the City.
7
City of Auburn: 2023 ACFR Letter of Transmittal
B. Risk Management
The City participates in the Washington Cities' Insurance Authority (an insurance pool of over 160
members) and the City actively pursues risk reduction in the operation of its programs.
The Washington Cities' Insurance Authority not only provides a sharing of risk by pooling of losses, but
it also provides an extensive array of professional services in risk management. The pool monitors the
City's management practices and damage claims. The City follows the guidelines provided by the pool
in an effort to minimize risk exposure in the day-to-day operations of the City's programs. The City also
maintains an extensive employee safety program managed by the Human Resources department.
The City purchases, with employee participation, most of its health insurance for its employees through
commercial policies administered by Brown and Brown. Employees represented by the outside Teamsters
Union have insurance through the Teamsters organization and employees represented by the inside
Teamsters Union have insurance policies administered by the Association of Washington Cities. Beginning
in 2014, the City created its own worker's compensation program and pool. Prior, the City participated
in the Washington State Workers' Compensation program.
To keep its long-term options open and to provide for any uninsured losses that might occur, the City
has elected to build an insurance reserve (the Insurance fund). The Insurance fund supplements various
insurance coverages maintained by the City. This fund is also used to self-insure some limited exposures,
the most significant of which is accidental loss to City-owned vehicles.
IV. OTHER RELEVANT INFORMATION
A. Independent Audit
State law requires an annual audit of all City books of accounts and financial records by the Office of the
State Auditor, which is headed by an independently elected State official, the State Auditor. The Auditor
has broad legal authority to inquire into all financial and legal compliance matters and such audits are
considered equal to audits by certified public accounting firms. The 2023 financial audit of the City is
complete and was conducted in conformance with Generally Accepted Auditing Standards. The financial
statements of all City funds have been included in this audit. The City has been given an unmodified
opinion for 2023. Please see the Auditor's Report. The State Auditor's Office also audits the City's
administration of its federal grants under the single audit concept.
B. Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Auburn for its Annual
Comprehensive Financial Report for the fiscal year ended December 31,2022. This was the thirty-seventh
consecutive year that the City has achieved this prestigious award. To be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized annual
comprehensive financial report. This report must satisfy both generally accepted accounting principles
and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual
Comprehensive Financial Report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
8
City of Auburn: 2023 ACFR Letter of Transmittal
C. Acknowledgments
Preparation of this report could not have been accomplished without the professional, efficient, and
dedicated staff of the Finance department and various other City employees who assisted in its
production. Further appreciation is extended to the Mayor and City Council for their encouragement,
interest, and support in conducting the financial affairs of the City in a sound and progressive manner.
The assistance of the auditors from the Washington State Auditor's Office is also greatly appreciated.
Respectfully submitted,
Jamie Thomas
Finance Director
9
GD
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Auburn
Washington
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2022
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Executive Director/CEO
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Office of the Washington State Auditor
Pat McCarthy
INDEPENDENT AUDITOR'S REPORT ON THE AUDIT OF THE
FINANCIAL STATEMENTS
Mayor and City Council
City of Auburn
Auburn, Washington
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund and the aggregate remaining fund information of the City of Auburn as
of and for the year then ended December 31, 2023, and the related notes to the financial statements,
which collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type activities,
each major fund and the aggregate remaining fund information of the City of Auburn,as of December 31,
2023, and the respective changes in financial position and,where applicable, cash flows thereof, and the
respective budgetary comparison for the General,American Rescue Plan Act(ARPA)and Arterial Street
funds for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the City and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
11
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate,that raise substantial doubt about the City's ability to continue as
a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
Performing an audit in accordance with GAAS and Government Auditing Standards includes the
following responsibilities:
• Exercise professional judgment and maintain professional skepticism throughout the audit;
• Identify and assess the risks of material misstatement of the financial statements,whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements;
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is
expressed;
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements;
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City's ability to continue as a going concern for a reasonable
period of time; and
12
• Communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and required supplementary information listed in the table of contents be
presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing
the basic financial statements in an appropriate operational, economic or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The combining financial statements and schedules are
presented for purposes of additional analysis and are not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. This information
has been subjected to auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the information is fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
Other Information
The other information comprises Introductory and Statistical sections but does not include the basic
financial statements and our auditor's report thereon. Management is responsible for the other
information included in the financial statements. Our opinions on the basic financial statements do not
cover the other information, and we do not express an opinion or provide any assurance thereon.
13
In connection with the audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING
STANDARDS
In accordance with Government Auditing Standards, we will also issue our report dated September 23,
2024, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements and other
matters. That report will be issued under separate cover in the City's Single Audit Report. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing,and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City's internal control over financial reporting and
compliance.
Sincerely,
Pat McCarthy, State Auditor
Olympia, WA
September 23, 2024
14
City of Auburn: 2023 Annual Comprehensive Financial Report Management's Discussion and Analysis
MANAGEMENT'S DISCUSSION AND ANALYSIS
The City of Auburn's (the "City") discussion and analysis is designed to:
• Assist the reader in focusing on significant financial issues.
• Provide an overview of the City's financial activity.
• Identify changes in the City's financial position (its ability to meet future years' challenges)
• Identify any material deviations from the approved budget.
• Identify individual fund issues or concerns.
Management's Discussion and Analysis is designed to focus on the current year's activities, resulting changes and currently
known facts. Therefore, it should be read in conjunction with the Transmittal Letter and the City's financial statements.
Financial Highlights
• Total government-wide net position — the difference between assets plus deferred outflows and liabilities plus
deferred inflows — equals $866.5 million, an increase of $42.7 million or 5.2%. Of this, a total of $596.5
million, or 68.8% of total net position, represents net investment in capital assets and includes assets such as
utility systems, streets, buildings, land, vehicles and equipment. An additional $7.1 million of net position is
restricted for purposes of endowment and debt service. Of the remaining $262.9 million of net position, $36.9
million is legally restricted, restricted by City policy for specific purposes, or is restricted for use by the City's
utilities. $20.5 million in net pension assets are restricted, as required by GASB 68, and the remaining $205.5
million is unrestricted.
• The net increase in government-wide net position during 2023 was $42.7 million. City-owned net investment
in capital assets decreased by $5.7 million, restricted net position decreased by $2.6 million, and unrestricted
net position increased by $51.6 million.
• Business-type net position increased by $9.9 million to $316.8 million during 2023 mainly due to increase in
unrestricted net position.
• Governmental fund balances at year-end totaled $131.5 million. Of this amount, $66.0 million, or 50.0%, is
unassigned and available to fund ongoing activities. Compared to 2022, total governmental fund balances
increased by $25.9 million, most of which is accounted for in unassigned fund balance. This increase reflects a
couple of changes in major revenue streams in 2023 including: the first full year of business and occupation tax
collection, investment earnings related to several new purchases to take advantage of high mid-term rates, and
increased collection of fines and penalties related to the newly implemented school zone speed cameras.
• Total City debt payments during the year, less compensated absences, lease liabilities, subscription liabilities,
pension liabilities, and other post-employment benefits, were $4.0 million. Long-term liabilities totaled $88.4
million at December 31,2023. The ending long-term liabilities saw a decrease of $1.4 million from 2022. While
the City retired $3.2 million of bond principal, and a net reduction of post-employment liabilities of$1.6 million,
the City also added $2.4 million of loans. New in 2023, the City recognized $4.1 million of subscription liability
as required by GASB Statement No. 96, further offsetting the net decrease in ending long-term liabilities. See
note 7 for further information on long-term liability activity during the year.
15
City of Auburn: 2023 Annual Comprehensive Financial Report Management's Discussion and Analysis
Overview of the Financial Statements
The City's basic financial statements are presented in three parts:
1) Government-wide financial statements
2) Fund financial statements
3) Notes to the financial statements
These statements report on the City's net position and changes during the reporting year. The net position is the
difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources.
Other supplementary information, in addition to the basic financial statements, is also contained in this report. This
section of the management's discussion and analysis is intended to introduce and explain the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements are designed to be corporate-like in that all governmental and business-type
activities are consolidated into columns which add to a total for the City. The focus of the Statement of Net Position is
designed to be similar to bottom-line results for the City and its governmental and business-type activities. This statement
combines and consolidates governmental funds' current financial resources (short-term spendable resources) with capital
assets, deferred outflows of resources, long-term obligations and deferred inflows of resources. Over time, increases or
decreases in net position may be one indicator of improvement or deterioration in the City's overall financial health.
The Statement of Activities is focused on both the gross and net cost of various functions, including both governmental
and business-type activities, which are supported by the City's general tax and other revenues. This is intended to
summarize and simplify the user's analysis of cost of various governmental services and/or subsidy to various business-
type activities. The revenue generated by the specific functions (charges for services, grants, and contributions) is
compared to the expenditures for those functions to show how much each function either supports itself or relies on
taxes and other general funding sources for support. All activity on this statement is reported on the accrual basis of
accounting, requiring that revenues are reported when they are earned and expenditures are reported when they are
incurred, regardless of when cash is received or disbursed.
Governmental activities of the City include general government (executive, finance, legal, human resources, and
contracted court), public safety (police), physical environment, economic environment, transportation, health and
human services, and culture and recreation. The City's business-type activities include water, sanitary sewer, storm water
and solid waste utilities as well as the operations of an airport and cemetery. Governmental activities are primarily
supported by taxes, charges for services, and grants, while business-type activities are self-supporting through user fees
and charges.
Fund Financial Statements
The Fund Financial Statements are the traditional reporting format for governments. A fund is a fiscal and accounting
entity with a self-balancing set of accounts used to account for specific activities or meet certain objectives. While the
government-wide statements present the City's finances based on the type of activity (general government vs. business
type), the Fund Financial Statements are presented by fund type, such as the general fund, special revenue funds and
proprietary funds, with the focus on major funds.
Governmental Funds are used to account for essentially the same functions that are reported as governmental activities
in the government-wide financial statements. The government major fund is presented utilizing the "sources and uses of
liquid resources" basis. This is the manner in which the budget is typically developed.The basis of accounting is different
between the governmental fund statements and the government-wide financial statements. The governmental fund
16
City of Auburn: 2023 Annual Comprehensive Financial Report Management's Discussion and Analysis
statements focus on the near-term revenues/financial resources and expenditures while the government-wide financial
statements include both near-term and long-term revenues/financial resources and expenditures. The information in the
governmental fund statements can be used to evaluate the City's near-term financing requirements and immediate fiscal
health. Comparing the governmental fund statements with the government-wide statements can help the reader better
understand the long-term impact of the City's current-year financing decisions.
Because the basis of accounting is different between the governmental fund statements and the government-wide
financial statements, reconciliations are provided. The reconciliation between the governmental fund Balance Sheets
and the government-wide Statement of Net Position is found directly following the governmental funds' Balance Sheet;
the reconciliation between the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance
and the government-wide Statement of Activities is found directly following the governmental funds' Statement of
Revenues, Expenditures, and Changes in Fund Balances.
The City maintains eighteen individual governmental funds. Of these, four are considered major (the general fund, the
American Rescue Plan Act fund, the arterial street fund, and the capital improvement projects fund) and are presented
separately in the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures and
Changes in Fund Balances. The remaining governmental funds are combined into a single column labeled "Other
Governmental Funds". Individual fund data for each of the other governmental funds can be found in the combining
statements later in this report. The City maintains budgetary control over its operating funds through the adoption of a
biennial budget. Budgets are adopted at the fund level according to state law. Budgetary comparison statements are
presented for the general and arterial street funds as part of the basic financial statements. Other budgetary comparison
statements are included following the other government funds' combining statements.
Proprietary funds are used by governments to account for their business-type activities and use the same basis of
accounting utilized in private industry. Business-type activities provide specific goods or services to a group of customers
that are paid for by fees charged to those customers. There is a direct relationship between the fees paid and the services
rendered.
The City has two types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to
account for goods and services provided to citizens, while internal service funds are used to account for goods and
services provided internally to various City departments.
Enterprise funds report the same functions presented as business-type activities in the government-wide statements, but
in greater detail. The City's enterprise fund statements provide information on the City's four utilities (water, sanitary
sewer, storm water, and solid waste) as well as the City-owned airport and cemetery.
Internal service funds are an essential accounting tool used to accumulate and allocate costs internally among the City's
various functions. The City uses internal service funds to account for its fleet of vehicles, maintenance and operation of
facilities, computer hardware and software services, employee costs related to occupational injury or illness, and
insurance premiums. Internal service funds benefit both governmental and business-type activities and are allocated
accordingly in the government-wide statement of activities.
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individuals, private
organizations, other governments or other funds. Fiduciary funds are not included in the government-wide financial
statements because their assets are not available to support the City's activities.
17
City of Auburn: 2023 Annual Comprehensive Financial Report Management's Discussion and Analysis
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-
wide and fund financial statements. The notes to the financial statements can be found at the end of the Basic Financial
Statements section.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the budget vs. actual reports of the City's general fund and major special revenue
funds. The budget vs. actual required supplementary information can be found on pages 42 through 44 and pages 116
through 117. The pension benefit and other postemployment benefit required supplementary information is found in
the required supplemental information section.
The combining statements referred to earlier in connection with nonmajor governmental funds, nonmajor enterprise
funds, and internal service funds are presented in the section titled "Fund Financial Statements and Schedules".
Government-wide Financial Analysis
The statement of net position may serve as a useful indicator of the City's financial position. The overall financial
position has improved for the City of Auburn over the prior year. Changes in Net Position from 2022 to 2023 show an
increase in total net position of $42.5 million or 5.2%. Following is a condensed version of the government-wide
statement of net position with a comparison to 2022:
Governmental Activities Business-Tvoe Activities Total
As of 12/31/2022 As of 12/31/2023 As of 12/31/2022 As of 12/31/2023 As of 12/31/2022 As of 12/31/2023
Current and other assets $ 203,344,990 $ 225,562,297 $ 97,171,469 $ 103,163,738 $ 300,516,460 $ 328,726,036
Capital asset,net of accumulated Depreciation 399,916,214 398,590,841 265,455,402 263,095,510 665,371,617 661,686,351
Total Assets 603,261,205 624,153,138 362,626,872 366,259,249 965,888,076 990,412,387
Deferred Outflows of Resources 12,388,774 12,668,302 2,633,739 2,403,397 15,022,513 15,071,698
Long-term liabilities 56,399,820 55,974,971 33,458,454 32,469,957 89,858,274 88,444,928
Other Liabilities 29,139,508 21,211,763 14,920,595 10,598,746 44,060,104 31,810,509
Total Liabilities 85,539,328 77,186,734 48,379,049 43,068,703 133,918,377 120,255,437
Deferred Inflows of Resources 13,149,680 9,864,678 10,043,516 8,828,523 23,193,196 18,693,201
Net Position
Net Investment in Capital Assets 371,760,695 368,081,520 230,412,108 228,381,433 602,172,802 596,462,953
Restricted:
Capital Projects 37,643,124 33,556,101 - - 37,643,124 33,556,101
Central Business District Development 133,695 - - - 133,695 -
Community Development Block Grant Program 42,904 42,904 - - 42,904 42,904
Debt Service 1,702 - 4,587,015 4,994,288 4,588,717 4,994,288
Drug Investigation and Enforcement 1,116,248 908,127 - - 1,116,248 908,127
Nonexpendable Permanent Endowment 2,070,671 2,151,308 - - 2,070,671 2,151,308
Opioid Settlement - 72,471 - - - 72,471
Firemen's Relief and Pension Plan - 1,870,328 - - - 1,870,328
Pension Asset 18,676,810 17,782,274 2,532,355 2,709,512 21,209,165 20,491,786
Rate Stabilization - - 438,483 - 438,483
Tourist Promotion 464,299 506,580 - - 464,299 506,580
Unrestricted 85,050,823 124,798,415 68,868,084 80,680,187 153,918,907 205,478,602
Total Net Position $ 516,960,971 $ 549,770,028 $ 306,838,045 $ 316,765,420 $ 823,799,016 $ 866,535,448
The largest component of the City's net position, $596.5 million or 68.8%, is its net investment in capital assets. This
balance is broken down by governmental activities ($368.1 million) and business type activities ($228.4 million).
18
City of Auburn: 2023 Annual Comprehensive Financial Report Management's Discussion and Analysis
Governmental capital assets, such as streets, parks, trails, and vehicles and equipment related to police and public works,
are used to provide services to the citizens; business-type capital assets account for the utility systems infrastructure (water
and sewer transmission/distribution lines, wells, pump stations, lift stations, storm retention ponds, etc.). As a result,
these assets are necessary for providing existing levels of service and are not for sale and are therefore not available to
fund current and future City obligations. Total net investment in capital assets decreased by $5.7 million over 2022.
The City elected the GASB 34 reporting option to include all general infrastructure of the City acquired or substantially
renovated since 1980.
The second largest component of the City's net position is unrestricted net position, $205.5 million. This balance is
broken down by: governmental activities ($124.8 million), which may be used for functions such as public safety
employee salaries and supplies, parks and road maintenance, and other general governmental services; and business-
type activities ($80.7 million) which may only be spent on activities related to one of the four City utilities (water,
sanitary sewer, storm water and solid waste) or to the City-owned ventures (airport and cemetery). Examples of utility
activities include maintenance of water/sewer mains, pump and lift stations, storm drain flushing, water meter reading,
and garbage collection. Activities related to the other City-owned ventures include maintenance of hangars and runways
at the airport and grooming and landscaping at the cemetery.
Restricted governmental net position is $56.9 million and is restricted for purposes such as contractual obligations on
capital project construction, revenue sources with external restrictions, debt service, drug investigation and enforcement,
pension assets, firemen's relief and pension plan and the cemetery endowment fund.
Changes in Net Position
The change in net position represents the increase or decrease in City net position resulting from its various activities.
The City's total net position increased by $42.7 million over 2022.
• Governmental activities contributed $32.8 million to the total increase in City net position.The largest factor in this
increase was the introduction of the City's Business and Occupation tax in 2022, which produced $7.5 million of
increase in revenue compared to 2022. Furthermore, increases in certain revenue sources, particularly charges for
service and investment earnings resulted in a revenue increase of $13.4 million over 2022. Governmental
expenditures increased by $8.9 million over the same period.
• Governmental activity expenses had a net increase of $8.9 million compared to 2022. A significant factor was
increases in regular operations and services, most of which were attributed to professional services, salary, and
benefit costs.
• Business-type net position totaled $316.8 million, an increase of $9.9 million (3.2%) over 2022. Business-type
revenue increased by $9.4 million; charges for services saw an increase of $7.9 million, largely due to higher service
fees related to a renewed contract with the City's solid waste hauler. Conversely, capital grants and contributions
decreased by $1.7 million from 2022 as a result of lower contributions from external developers. Business-type
expenses increased by $6.1 million, with approximately $5.8 million attributable to increased maintenance and
operation costs related to utility funds — driven mostly by increases in salaries and wages and professional services
and supply costs.
19
City of Auburn: 2023 Annual Comprehensive Financial Report Management's Discussion and Analysis
The following table on the next page is a condensed version of the City's changes in net position. The table shows the
revenues, expenditures and related changes in net position for both governmental-type and business-type activities:
CHANGES IN NET POSITION
Comparative Analysis of 2023 and 2022
Governmental Activities Business-type Activities Total
2023 2022 2023 2022 2023 2022
Revenues:
Program revenues
Charges for services $ 19,703,591 $ 12,467,659 $ 92,817,104 $ 84,871,076 $ 112,520,695 $ 97,338,735
Operating grants and contributions 10,836,967 7,398,845 - - 10,836,967 7,398,845
Capital grants and contributions 4,831,617 8,644,981 2,102,419 3,847,367 6,934,036 12,492,348
General revenues
Property taxes 24,597,118 24,635,089 - - 24,597,118 24,635,089
Sales taxes 29,372,547 26,295,124 - - 29,372,547 26,295,124
Interfund utility taxes 7,771,366 6,396,937 - - 7,771,366 6,396,937
Admission&utility taxes 13,071,264 9,532,991 - - 13,071,264 9,532,991
Excise taxes 3,584,905 6,110,151 - - 3,584,905 6,110,151
Business and Occupation 12,198,944 4,664,551 - 12,198,944 4,664,551
Other taxes 4,445,514 4,635,655 - - 4,445,514 4,635,655
Investment earnings 6,969,307 815,061 3,937,300 1,068,685 10,906,607 1,883,746
Miscellaneous revenue 799,586 1,789,159 1,547,056 1,194,771 2,346,642 2,983,930
Total revenues 138,182,725 113,386,203 100,403,879 90,981,899 238,586,604 204,368,102
Expenses:
General government 17,796,126 14,735,664 - - 17,796,126 14,735,664
Public safety 38,871,123 38,402,492 - - 38,871,123 38,402,492
Transportation 19,075,820 18,517,806 - - 19,075,820 18,517,806
Physical environment 4,631,448 3,597,960 - - 4,631,448 3,597,960
Culture and recreation 16,735,629 14,800,322 - - 16,735,629 14,800,322
Economic environment 5,251,455 4,662,845 - - 5,251,455 4,662,845
Health and human services 3,432,638 2,179,401 - - 3,432,638 2,179,401
Interest on long-term debt 731,092 677,414 - - 731,092 677,414
Water - - 16,397,394 14,094,553 16,397,394 14,094,553
Sanitary sewer - - 28,014,709 28,481,203 28,014,709 28,481,203
Storm drainage - - 11,424,247 10,370,729 11,424,247 10,370,729
Solid waste - - 29,377,682 26,457,098 29,377,682 26,457,098
Airport - - 2,317,741 - 2,317,741 -
Other business-type activities - - 1,793,070 3,754,361 1,793,070 3,754,361
Total expenses 106,525,331 97,573,904 89,324,843 83,157,944 195,850,174 180,731,848
Increase in net position before transfers 31,657,395 15,812,299 11,079,035 7,823,955 42,736,430 23,636,254
Transfers 1,151,660 304,449 (1,151,660) (304,449) - -
Change in net position 32,809,055 16,116,748 9,927,375 7,519,506 42,736,430 23,636,254
Net Position,January 1,as Previously Reported 516,960,973 500,844,225 306,838,045 299,318,539 823,799,018 800,162,764
Net position,December 31 $ 549,770,028 $ 516,960,973 $ 316,765,420 $ 306,838,045 $ 866,535,448 $ 823,799,018
20
City of Auburn: 2023 Annual Comprehensive Financial Report Management's Discussion and Analysis
Governmental Activities
The chart below summarizes the governmental activity revenue, by source.
Revenues by Source—Governmental Activities
Business and Occupation Tax,
Utility Tax,15% 9%
Capital Grants and
Contributions,3%
Charges for Services,14%
Sales Tax,21%.
Operating Grants and
Contributions,8%
Other Revenue.6%
Properly Tax,18%
Other Taxes,6%
The City's most significant Governmental Revenue sources are taxes (69%), charges for services (14%), and grants and
contributions (11%). Overall, the City's governmental revenue exhibits an increase of$24.8 million or 21.9%over 2022.
Governmental charges for service revenue increased by $7.2 million, due primarily to increased revenue associated with
parking infractions, support services, excavation permits, law enforcement services, fines and forfeitures, business licenses
and permit charges. Additionally, increase in excess revenue over expenses related to internal service fund activity, has
a had a positive impact on the government-wide revenues associated with governmental activities. B&O tax and
investment earnings increased respectively by $7.5 and $6.2 million. Offsetting these revenue increases was a decrease
in excise taxes of $2.5 million, and a decrease of $3.8 million in capital grants and contributions.
General tax revenues increased by 15.5%to $95.0 million between 2022 and 2023:
• Business and occupation tax increased by$7.5 million or 61.5%due to 2023 being the first full year of collections
and business outreach and enforcement.
• Utility and admission tax revenue increased by $3.5 million or 37.1% due to an increase in Solid Waste Utility
tax collections, increased private utility tax collections for electric, and collection of water/sewer/storm tax for
external agencies provided service inside the City of Auburn city limits.
• Sales tax collections increased $3.0 million or 11.7%, due largely to continued demand and inflation in the
automobile sales and services sectors.
• Interfund utility tax revenue saw an increase of $1.4 million or 21.5% due to increased user rates in the utility
funds.
• Property tax revenue decreased $0.04 million or 0.2%. Property tax increases are limited, by State law, to 1%
each year. This small decrease reflects the timing of collections.
• Excise tax revenue decreased by $2.5 million or 41.3%. The majority of this is Real Estate Excise Tax (REET),
which is an excise tax that the City receives on the sale of real property within the City limits of Auburn.
Although home values remain high, increasing interest rates in 2023 led to fewer sales in 2023 over 2022.
21
City of Auburn: 2023 Annual Comprehensive Financial Report Management's Discussion and Analysis
The chart below identifies the specific programs' revenues and related expenses for the various activities of the City.
Gaps between specific programs' revenues and their related expenses are funded through general tax revenues.
Program Expenses and Revenues—Governmental Activities
$45
$40
$35
$30
''
0
$25
$20
$15
$10
$5
$ I II LIII. ■-
General Public Safety Transportation Physical Culture and Economic Health and
Government Environment Recreation Environment Human Services
•Expenses •Program Revenues
Business-Type Activities
The following chart shows the funding sources for the for business-type activities, broken down by source:
Business Type Activity Revenues-By Source
Investment Earring, Other Revenue,2%
4%
Cap"stal Granisan:s
Contributiara,2%
Charges for Services,
92%
22
City of Auburn: 2023 Annual Comprehensive Financial Report Management's Discussion and Analysis
The most significant revenue source is charges for services ($92.8 million in 2023). Revenue is collected into these funds
via user fees and consumption charges. Rates for these fees are established taking into consideration the ongoing
maintenance and operating costs for the systems they support, as well as the long-term capital investments and
improvements that are necessary in the short and long term. These activities also rely on capital grants and contributions
($2.1 million in 2023) to help fund infrastructure projects.
Following are two charts that contrast the total net position to the spendable portion of net position for each
enterprise fund:
Comparison of Total Net Position to Spendable Net Position—Utility Funds
$120
$100
$80
0
$60
$40
$20
Water Storm Drainage Sanitary Sewer Solid Waste
■Spendable Net Position ■Total Net Position
Comparison of Total Net Position to Spendable Net Position—Airport and Cemetery
$16
$14
$12
a $10
$8
$6
$4
$2
Airport Cemetery
■Spendable Net Position •Total Net Position
23
City of Auburn: 2023 Annual Comprehensive Financial Report Management's Discussion and Analysis
The following chart shows how each utility fund program revenue and expenses compare:
Business Type Activity Revenues and Expenses
(Before Capital Contributions and Transfers)
$35
$30
$25
i^ 520
0
$15
$10
$5
5_ I ■■ ■■
Water Sanitary Sewer Storm Drainage Solid Waste Airport Non-major Business-
Type Activities
•Expenses •Revenues
Generally, revenue collected from user fees of the City's utility systems exceed expenses. In 2023 there was one exception
which was the Solid Waste fund. In order to mitigate rate increases for solid waste services in 2022 and 2023, a portion
of the accumulated fund balance was used. Therefore, a full cost recovery model was intentionally not in effect for
2022 and 2023.
The following chart shows the relative net position balances for each business-type fund:
Business Type Net Position-by Fund
Airport.4%
Cemetery.I%
Solid Waste,0%
Water,35%
Storm Drainage.27%
Sanitary Sewer.33%
24
City of Auburn: 2023 Annual Comprehensive Financial Report Management's Discussion and Analysis
The majority of the City's enterprise net position in enterprise funds relates to capital asset infrastructure, such as water
and sewer mains and the airport runway. As such, most of the net position is not available to support the ongoing
expenditures of the funds. Additionally, some activities such as water, sewer, and storm serve a greater number of
customers and have significantly more expensive infrastructure needs, therefore their net position typically remains
higher to properly fund future investments.
Financial Analysis of Governmental Funds
The purpose of the City's governmental funds is to report on near-term revenues/financial resources and expenditures.
This information will help determine the City's financial requirements in the near future. Specifically, fund balance is a
good indicator of the City's financial resources.
As of December 31, 2023, the City's governmental funds had combined fund balances of $131.5 million, an increase of
$25.9 million or 24.6% over the previous year. This change was primarily a result of changes in fund balances in the
City's general fund ($20.3 million).
The following table shows the changes in fund balance between 2022 and 2023:
Changes in Fund Balance - By Fund
2023 2022 Difference
General Fund $ 78,479,689 $ 58,171,880 $ 20,307,809
Arterial Street fund 2,279,131 2,350,156 (71,025)
Capital Improvements Fund 15,669,290 16,134,370 (465,080)
Cemetery Endowment Fund 2,390,209 2,201,305 188,904
All Other Governmental Funds 32,693,951 26,707,801 5,986,150
Total $ 131,512,270 $ 105,565,513 $ 25,946,758
Of the government funds' total fund balances, $66 million is unassigned. Nonspendable, restricted, committed and
assigned fund balances account for the remaining$65.5 million. Of this, $17.7 million is restricted,committed or assigned
for capital projects, $32.4 million is in special revenue funds that are restricted, committed, or assigned for specific
purposes and $2.2 million is nonspendable principal balances in endowment fund (permanent fund).
The following chart shows how the total $131.5 million governmental fund balances are allocated, by relative fund:
Governmental Funds- Fund Balance
All Other Governmental
Funds,
25%
Cemetery Endowment General Fund,
Fund, 60%
2%
Capital I mprovement"
Fund,
12%
Arterial Street Fund,
2%
25
City of Auburn: 2023 Annual Comprehensive Financial Report Management's Discussion and Analysis
The General Fund is the primary operating fund of the City,which accounts for 59.7%of all governmental fund balances.
All receipts and payments of ordinary City operations are processed through it unless they are required to be accounted
for in another fund.
At the end of 2023,the general fund had a fund balance of$78.5 million, $12.4 million of which is assigned or restricted,
and $66.0 million is unassigned. This increase of $20.3 million in fund balance over 2022 is attributed to revenue
increases by approximately $19.3 million; at the same time, expenditures only increased by about $8.6 million over
2022.The most significant contributors to the increase in the City's general fund growth between 2022 and 2023 were:
• Business and Occupation tax $ 7.4 million
• Investment Earnings 4.0 million
• Utility tax 3.3 million
Other funds that had significant fund balances include:
• $2.3 million in the Arterial Street fund, used specifically for major street improvement projects. Most of these
projects are funded with state and federal grants, motor vehicle excise tax,Transportation Benefit District (TBD)
.1% sales tax, and impact mitigation fees.
• $15.7 million in the Capital Improvement fund, used for various governmental capital asset projects. The fund
balance increased by $2.1 million due to the collection of Real Estate Excise Tax that exceeds capital spending.
• $35 million in all other government funds:
o $16.4 million of this fund balance is in the mitigation fund, which accounts for the collection of park
and traffic impact and mitigation fees that are ultimately used for capital projects. The fund balance
increased by $0.5 million between 2022 and 2023 due to lower collections of developer impact fees,
but consistent levels of capital spending compared to 2022.
o The remaining $18.6 million of this fund balance is comprised of the City's arterial and local street
preservation funds, cemetery maintenance, hotel/motel tax, community development, local
revitalization, drug forfeiture, recreational trails, and municipal parks construction fund. These funds-
in aggregate - increased by about $5.1 million largely due to lower-than-expected spending on street
projects.
• General fund revenue increased by $19.3 million, sources of which are shown in the chart below. Property
taxes decreased by $0.2 million, and excise taxes decreased by $0.4 million from 2022. Over the same period,
utility tax increased by $3.3 million, and B&O tax increased by $7.4 million. Sales tax and interfund utility tax
increased by $0.9. Intergovernmental revenues declined by by $0.5 million. However, licenses and permits
increased by $0.6 million, charges for services increased by $1.8 million, fines & forfeitures increased by $2.2
million, investment earnings increased by $4.0 million and miscellaneous revenues increased by $0.2 million.
26
City of Auburn: 2023 Annual Comprehensive Financial Report Management's Discussion and Analysis
2023 Changes in General Fund Revenue-By Source
Miscellaneous
Investment Earnings
Fines and Forfeitures
Charges for Services
Intergovernmental
licenses and Permits
Excise Tax
Utility Tax
Business and Occupation Tax
Interfund Utility Tax
Retail Sales&Use Tax
Property Tax ■
$(1,000,000) S. $1,0e0,000 $2,0 o,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,030,000 $8,000,000
Financial Analysis of Proprietary Funds
The City's proprietary funds provide the same type of information as found in the government-wide financial statements,
but in greater detail. Factors affecting the finances of the City's proprietary funds have already been addressed in the
discussion of the City's business-type activities.
General Fund Budgetary Highlights
The City budgets biennially by adopting two single-year budgets at the end of each even-numbered year and then
making adjustments as necessary via budget amendments throughout the biennium. Major amendments to the 2023
budget included:
• Budgeted general fund expenditures and transfers out increased from $98.1 million to $107.9 million. Significant
changes include transfers associated with ARPA funding, carry forward items from 2022 for professional services
and miscellaneous expenses.
Reasons for the variances in the general fund between the final budget and actual results include:
• Actual General Fund revenues totaled $117.0 million, or 19.6% above budget. Significant areas of favorable
variance include business and occupation tax,which exceeded budget by $6.4 million; sales and use taxes,which
exceeded budget by $3.5 million; investment earnings, which were $1.9 million higher than the budget; fines
and forfeitures, which were $2.1 above the budget; and utility taxes, which were $2.4 million above budget.
All areas of favorable variance included inflation, higher rates of return on investments, and new revenue
sources. Areas of unfavorable variance include interfund utility taxes, which were $0.7 million below budget
due to the City no longer applying this tax to the pass-through King County Metro sewerage charges, and excise
taxes, which were $43,950 under budget. Intergovernmental revenues were $63,944 below budget.
• Actual general fund expenditures, including transfers out,totaled $97.0 million and were under budget by $10.8
million. Departments experienced savings due to lower than anticipated salary and benefit payments due to
continued vigilance in monitoring city-wide expenditures, as well as large amounts of employee attrition.
Significant areas of under-expenditure include reduced personnel costs— largely due to vacancies—and reduced
professional services contracts and other miscellaneous expenditures.
27
City of Auburn: 2023 Annual Comprehensive Financial Report Management's Discussion and Analysis
Capital Asset and Debt Administration
Capital Assets
The City's investment in capital assets for both its governmental and business-type activities as of December 31, 2023,
totaled $661.7 million (net of accumulated depreciation), an decrease of $7.8 million from 2022. This investment in
capital assets includes land, buildings, improvements, machinery and equipment, construction in progress, utility
transmission/distribution systems, roads, bridges, and other infrastructure.
Major capital asset changes during the year include:
• Land acquisition from MultiCare Health System resulted in an increase of $2.4 million in assets associated with
governmental activities.
• $1.0 million of net increase in various construction projects related to governmental activities.
• Net decrease of$1.8 million in the book value of the governmental buildings is mainly the result of asset disposal
by $0.4 million and $1.5 of depreciation.
• $1.9 million of increase in the book value of the governmental machinery and equipment is primarily due to
addition of new equipment by $4.2 million and the period depreciation of $2.2 million.
• Net decrease of $8.5 in the book value of governmental infrastructure is comprised of $15.9 million for
depreciation, $0.8 million of developer contributions, and $6.6 million of costs related to street preservation
and improvement projects.
• $4.7 million was spent by proprietary funds on construction projects and $7.0 million of completed projects
was added to the cost of improvements during the year.
A summary of the City's capital assets follows:
Summary of Capital Assets (net of depreciation)
Governmental Activities Business-type Activities Total
As of 12/31/2023 As of 12/31/2022 As of 12/31/2023 As of 12/31/2022 As of 12/31/2023 As of 12/31/2022
Land 110,906,160 $ 108,373,419 $ 13,177,445 $ 13,177,445 $ 124,083,605 $ 121,550,864
Construction in progress 10,027,639 9,027,389 6,371,353 8,775,228 16,398,992 17,802,617
Buildings 44,130,932 45,984,472 1,381,726 1,481,293 45,512,658 47,465,765
Improvements other than buildings 9,418,951 9,830,266 232,310,805 233,074,401 241,729,756 242,904,667
Machinery and equipment 11,445,145 9,559,829 160,603 188,261 11,605,749 9,748,090
Intangibles 499,523 504,458 9,693,578 8,758,773 10,193,101 9,263,231
Infrastructure 203,535,801 212,001,017 - - 203,535,801 212,001,017
Lease Assets 4,332,770 4,635,368 - - 4,332,770 4,635,368
Subscription Assets 4,293,919 4,079,690 - - 4,293,919 4,079,690
$ 398,590,841 $403,995,907 $ 263,095,510 $ 265,455,401 $ 661,686,351 $669,451,309
More detailed information on capital assets is provided in Note 6.
Long-term Debt
At the end of the current fiscal year, the City had total net bonded debt outstanding of $57.5 million. Of this amount,
$15.2 million is due to other governments, $16.8 million is general obligation bonds, and $25.5 million is revenue bonds
for the water, sewer and storm utilities. The City currently maintains a rating of AA+ with Standard & Poor's for its
general obligation debt.
28
City of Auburn: 2023 Annual Comprehensive Financial Report Management's Discussion and Analysis
The following schedule summarizes the City's bonded debt:
Governmental Business-type
Activities Activities Total
General obligation bonds $ 16,808,476 $ - $ 16,808,476
Revenue bonds - 25,540,000 25,540,000
Due to other governments 15,193,659 - 15,193,659
$ 32,002,135 $ 25,540,000 $ 57,542,135
In addition, the City has an outstanding $7.3 million in non-bonded long-term debt with 7 separate Public Works
Trust Fund and Drinking Water Loans.
Washington State law limits the amount of general obligation debt a governmental entity may issue to 7.5% of its
total assessed value. Of the 7.5% limit, 2.5% is for general purposes, 2.5% is for open spaces/parks, and 2.5% is for
utilities. Non-voted (limited tax) general obligation indebtedness is limited to 1.5% of assessed valuation. The
combination of unlimited tax and limited tax general obligation debt for all purposes cannot exceed 7.5% of assessed
valuation. Additional information can be found in note 7 and in the statistical section of this report.
Economic Factors
The past year realized small growth over 2022. Most positive economic impacts were seen in consistent sales and retail
taxes, which were much greater than budgeted due to inflationary costs of goods resulting in strong sales and use tax
revenue collections. Building permit activity and developer investments showed a decline for the second year in row in
2023 and may indicate future economic slowing. Real property values, which had finally recovered to pre-recession
levels by 2016, continued to grow and assessed valuation grew an additional 2% in 2023.
While economic recovery remained consistent in 2023 following a moderate 2022 and strong 2021,there are continued
concerns of an impending recession,fueled by high rates of inflation triggered by increasing labor costs, scarcity of goods,
and continued increases by the federal reserve.The City is considering the consistent revenue activity and budget savings
in 2023 as short-term and will be leveraging the increased revenue towards one-time uses. Prior to experiencing the
strong economic conditions of 2021, the City was facing a fiscal imbalance (expenditure growth outpacing revenue
growth) in the next two biennium. While 2021 and 2022 have provided a slight reprieve, this imbalance is expected to
return if smart fiscal policies and spending are not adhered to and/or new funding sources are not considered. Therefore,
the City remains cautious and continues to vigilantly monitor and control its expenditures in order to live within the
City's means.
Requests for Information
This financial report is designed to provide a general overview of the City of Auburn's finances for readers with an
interest in the City's finances. Questions concerning this report, or requests for additional information, may be addressed
to the Finance Director, City of Auburn, 25 West Main Street, Auburn WA 98001-4998.
29
City of Auburn: 2023 Annual Comprehensive Financial Report Management's Discussion and Analysis
*
CITY of * *
UBURN
WASHINGTON
30
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City presents two government-wide financial statements.
The Statement of Net Position
This statement provides information all on city assets, liabilities, and deferred outflows/inflows of
resources with the net difference reported as net position.
The Statement of Activities
This statement is focused on both the gross and net cost of various functions, including both
governmental and business-type activities. The governmental activities are principally supported by
taxes and intergovernmental revenues. The business-type activities are intended to recover all, or a
significant portion, of their costs through user fees and charges.
31
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
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*
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32
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
STATEMENT OF NET POSITION
December 31,2023
Primary Government
Governmental Business-Type
Activities Activities Total
ASSETS:
Cash and Cash Equivalents $ 74.450,946 $ 40.377.294 $ 114,828.240
Investments 49,127,500 34.700.350 83,827.850
Receivables:
Taxes 986,344 - 986.344
Customer Accounts 3,201,979 8,976,408 12,178.387
Other Receivables 6,684,564 482.399 7,166.963
Due From Other Governmental Unit 3,834,797 698.692 4,533,489
Internal Balances (602,020) 602,020 -
Materials and Supplies Inventory 552,155 428.673 980.828
Restricted Assets:
Temporarily Restricted:
Cash and Cash Equivalents 21.496,393 6.723.991 28,220.384
Due From Other Governmental Units 1.696,583 - 1,696.583
Permanently Restricted:
Cash and Cash Equivalents 2,151,308 - 2,151.308
Long-Term Contracts. Leases and Notes 3,839.611 7.464.399 11,304.010
Net Pension Asset 17,782,274 2.709.512 20,491.786
Investment in Joint Ventures 40,359,864 - 40,359,864
Depreciable Assets (Net of Accumulated Depreciation) 277,657,042 233.853.133 511,510,175
Non-Depreciable Assets 120,933,799 29.242.377 150,176,176
Total Assets 624,153,138 366.259.249 990,412.387
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflows from Bond Refunding 485,353 142.317 627.669
Deferred Outflows Related to Pensions 12,182,949 2.261.080 14.444.029
Total Deferred Outflows of Resources 12,668,302 2,403,397 15,071,698
LIABILITIES:
Accounts Payable 7,419,740 3.716.574 11,136,315
Other Liabilities Payable 596,769 - 596.769
Payable From Restricted Assets:
Accrued Interest - 1.263.459 1,263.459
Deposits - 302.741 302,741
Unearned Revenue 4.327,907 - 4,327.907
Net Pension Liability 2,190,148 1.808.514 3,998,662
Employee Leave Benefits-Compensated Absences
Due Within One Year 3,167,538 715.232 3,882,770
Due in More Than One Year 1,072,998 242.285 1,315,283
Bonds and Other Debt Payable:
Due Within One Year 1,364,693 2.792.226 4,156,919
Due in More Than One Year 21,096,907 32.227.672 53,324,579
Lease and SBITA Payable:
Due Within One Year 948,709 - 948,709
Due in More Than One Year 7,584,365 - 7,584,365
Due to Other Governmental Units:
Due Within One Year 723,258 - 723,258
Due in More Than One Year 14,470,401 - 14,470,401
Total OPEB Liability
Due Within One Year 473,000 - 473,000
Due in More Than One Year 8,834,343 - 8,834,343
Other Non-Current Liabilities:
Total Firemen's Pension Liability 2,915,957 - 2,915.957
Total Liabilities 77,186,734 43.068,703 120,255.437
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflows Related to Leases 3,656,505 6.970,678 10,627,183
Deferred Inflows Related to Pensions 6,208.173 1.857.845 8.066.018
Total Deferred Inflows of Resources 9,864,678 8.828.523 18,693,201
NET POSITION:
Net Investment in Capital Assets 368,081,520 228.381.433 596,462.953
Restricted:
Capital Projects 33,556,101 - 33,556,101
Nonexpendable Permanent Endowment 2,151,308 - 2,151,308
Debt Service - 4.994.288 4,994,288
Tourist Promotion 506,580 - 506,580
Drug Investigation and Enforcement 908,127 - 908,127
Community Development Block Grant Program 42,904 - 42,904
Pension Asset 17,782,274 2.709.512 20,491,786
Firemen's Relief and Pension Plan 1,870,328 - 1,870,328
Opioid Settlement 72,471 - 72,471
Unrestricted 124,798,415 80.680,187 205,478.602
Total Net Position $ 549.770,028 $ 316.765.420 $ 866.535.448
The notes to the basic financial statements are an integral part of this statement.
33
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn, Washington
STATEMENT OF ACTIVITIES
For the Year Ended December 31,2023
Page 1 of 2
Program Revenues
Charges for Capital Operating
Services and Grants and Grants and
Expenses Fines Contributions Contributions
FUNCTIONS/ PROGRAMS:
Primary Government
Governmental Activities
General Government $ 17,796,126 $ 6,240,133 $ 47,241 $ 7,572,942
Public Safety 38,871,123 4,118,030 194,950 2,446,638
Transportation 19,075,820 2,639,295 2,498,887 24,913
Physical Environment 4,631,448 587,681 863,692 -
Culture and Recreation 16,735,629 4,083,742 699,166 258,731
Economic Environment 5,251,455 2,034,710 45,159 533,743
Health and Human Services 3,432,638 - 482,522 -
Interest on Long-Term Debt 731,092 - - -
Total Governmental Activities 106,525,331 19,703,591 4,831,617 10,836,967
Business-Type Activities
Water 16,397,394 18,588,136 1,037,088 -
Sewer 28,014,709 30,977,078 512,312 -
Storm 11,424,247 11,856,237 553,019 -
Solid Wate 29,377,682 27,564,658 - -
Airport 2,317,741 1,856,427 - -
Nonmajor Business-Type Activities 1,793,070 1,974,568 - -
Total Business-Type Activities 89,324,843 92,817,104 2,102,419 -
Total Primary Government $ 195,850,174 $ 112,520,695 $6,934,036 $ 10,836,967
General Revenues:
Taxes:
Property
Retail Sales & Use
Interfund Utility
Utility
Excise
Business and Occupation
Other
Investment Earnings
Other Revenues
Gain (Loss) on Sale of Capital Assets
Contributions to Endowment Funds
Transfers
Total General Revenues
Net Change in Net Position
Net Position -January 1
Net Position - December 31
The notes to the basic financial statements are an integral part of this statement.
34
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
Page 2 of 2
Net (Expense) Revenue and Changes in Net
Position
Governmental Business-Type
Activities Activities Total
$ (3,935,810) $ - $ (3,935,810)
(32,111,506) - (32,111,506)
(13,912,725) - (13,912,725)
(3,180,075) - (3,180,075)
(11,693,990) - (11,693,990)
(2,637,842) - (2,637,842)
(2,950,116) - (2,950,116)
(731,092) - (731.092)
(71,153,157) - (71,153.157)
- 3,227,830 3,227,830
- 3,474,681 3,474,681
- 985,009 985,009
- (1,813,023) (1,813,023)
- (461,314) (461,314)
- 181,498 181,498
- 5.594.680 5.594.680
$ (71,153,157) $ 5,594,680 $ (65,558,477)
$ 24,597,118 $ - $ 24,597,118
29,372,547 - 29,372,547
7,771,366 - 7,771,366
13,071,264 - 13,071,264
3,584,905 - 3,584,905
12,198,944 - 12,198,944
4,445,514 - 4,445,514
6,969,307 3,937,300 10,906,607
1,124,773 1,548,120 2,672,893
(405,824) (1,064) (406,888)
80,637 - 80,637
1,151,660 (1,151,660) -
103,962,211 4,332,696 108,294,907
32,809,055 9,927,375 42,736,430
516,960,973 306,838,045 823,799,018
$ 549,770,028 $ 316,765,420 $ 866,535,448
35
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
*
*
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36
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
MAJOR GOVERNMENTAL FUNDS
General Fund
The general fund accounts for all of the City's financial resources except those required by statute
or generally accepted accounting principles to be accounted for in another fund. As is the case with
most municipalities, the general fund is the largest and most important accounting entity of the
City. As noted in the statements that follow, the general fund receives the bulk of its revenues from
local taxes, followed by State shared revenues, service charges, and other income.
The general fund is accounted for on a modified accrual basis. Biennial budgets are adopted
with appropriations lapsing at the end of each year of the biennium.
American Rescue Plan Act Fund
The fund was created to track Federal funding from the coronavirus rescue package designed to
facilitate the recovery from the devasting economic impacts and public health emergency effects
of the COVID-19 pandemic.
Arterial Street Fund
This fund is supported by the State of Washington's motor vehicle fuel tax and by various
grants and is used for major street construction.
Capital Improvement Projects Fund
This fund accounts for major capital acquisitions, and streets and parks construction projects.
37
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
BALANCE SHEET
GOVERNMENTAL FUNDS
For the Year Ended December 31,2023
Other Total
American Capital Governmental Governmental
General Fund Rescue Plan Arterial Street Improvements Funds Funds
ASSETS:
Cash and Cash Equivalents $ 27,948,421 $ 4,218,477 $ 2,455,706 $ 10,395,357 $ 34,344,619 $79,362,579
Investments 44,305,800 - - 4,821,700 - 49,127,500
Receivables:
Customer Accounts 2,672,098 - 340,030 - 123,468 3,135,597
Other Receivables 6,581,913 - - 2,049 52,513 6,636,475
Taxes 544,190 - - - 442,154 986,344
Interfund Receivable 450,000 - - - - 450,000
Inventories 63,786 - - - - 63,786
Long-Term Notes and Contracts 1,598,848 - 64,431 - 2,176,333 3,839,611
Due From Other Governmental Units 3,801,917 - 219,777 670,974 821,697 5,514,365
Total Assets 87,966,973 4,218,477 3,079,944 15,890,081 37,960,783 149,116,257
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 4,197,219 - 691,383 220,790 290,542 5,399,934
Customer Deposits 131,769 - - - - 131,769
Interfund Payable - - - - 450,000 450,000
Other Liabilities Payable 314,898 - - - - 314,898
Unearned Revenue - 4,218,477 109,431 - - 4,327,907
Total Liabilities 4,643,886 4,218,477 800,813 220,790 740,542 10,624,508
Deferred Inflow of Resources:
Unavailabe Revenues-Other 3,322,974 - - - - 3,322,974
Deferred Inflows Related to Leases 1,520,424 - - - 2,136,081 3,656,505
Total Deferred Inflow of Resources 4,843,398 - - - 2,136,081 6,979,479
Fund Balance:
Nonspendable 63,786 - - - 2,151,308 2,215,094
Restricted 1,942,799 - 2,279,131 14,807,858 17,926,724 36,956,512
Committed - - - - 11,778,743 11,778,743
Assigned 10,479,588 - - 861,433 3,227,386 14,568,407
Unassigned 65,993,516 - - - - 65,993,516
Total Fund Balance 78,479,689 - 2,279,131 15,669,290 35,084,160 131,512,270
Total Liabilities,Deferred Inflows And Fund Balances $ 87,966,973 $ 4,218,477 $ 3,079,944 $ 15,890,081 $ 37,960,783 $149,116,257
The notes to the basic financial statements are an integral part of this statement.
38
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
RECONCILIATION OF BALANCE SHEET OF GOVERNMENT FUNDS TO THE STATEMENT OF NET POSITION
December 31,2023
Total governmental fund balances as reported on this statement funds are included in governmental activities in the statement of net position. $ 131,512,270
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets of general government not reported on fund financial statements,net of depreciation 385,772,261
Other non-current assets used in governmental activities not reported on fund financial statements
Accrual receivables such as interest 9,094
Investment in joint venture 40,359,864
Net pension asset 16,820,185
57,189,143
Other long-term assets are not available to pay for current-period expenditures and therefore are reported as unavailable revenue in the governmental
funds:
Unavailable revenue beyond the city's 30-day measurable and available period 3,322,974
Accrued obligations not normally recorded in governmental funds
Bonds and loans payable including bond premium (22,461,600)
Compensated absences payable (3,867,982)
Deferred amount on bond refunding 485,353
Due to other governments (15,193,659)
Firemen's Pension Liability (2,915,957)
Lease and subscription liability (7,508,863)
Net deferred amounts related to pension 5,948,397
Net pension liability (1,299,891)
OPEB liability (9,307,343)
Other liabilities such as interest accruals (134,522)
(56,256,067)
Internal service funds are used by management to charge the cost of certain activities,such as insurance,fleet maintenance and information technology, 28,229,447
to individual funds. The assets and liabilities of these internal service funds are included in governmental activities in the statement of net position.
Net position of government activities as reported on the statement of net position $ 549,770,028
The notes to the basic financial statements are an integral part of this statement,
39
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For the Year Ended December 31,2023
Other Total
American Arterial Capital Governmental Governmental
General Fund Rescue Plan Street Improvements Funds Funds
REVENUES:
Taxes:
Retail Sales&Use $ 26,708,818 $ - $ - $ - $ 2,663,730 $ 29,372,547
Property 24,202,184 - - - 317,749 24,519,933
Utility 11,126,882 - - - 1,944,382 13,071,264
Business and Occupation 12,051,586 - - - - 12,051,586
Interfund Utility 6,018,177 - - - 1,753,189 7,771,366
Excise 495,864 - - 2,905,778 183,262 3,584,905
Charges for Services 10,237,142 - 231,440 22,859 1,938,065 12,429,506
Fines and Forfeitures 2,578,194 - - - 155,692 2,733,886
Intergovernmental 6,705,822 6,002,286 1,629,408 777,652 852,965 15,968,133
Investment Earnings 3,909,134 - 93,986 764,021 1,505,608 6,272,749
Licenses and Permits 2,850,318 - - - - 2,850,318
Miscellaneous 1,586,796 - 356,913 - 148,539 2,092,249
Total Revenues 108,470,917 6,002,286 2,311,747 4,470,311 11,463,180 132,718,441
EXPENDITURES:
Current:
Culture and Recreation 15,535,160 - - - 294 15,535,454
Economic Environment 4,532,902 - - - 964,733 5,497,635
General Government 17,410,720 - - - - 17,410,720
Health and Human Services 3,292,302 - - - - 3,292,302
Physical Environment 5,352,978 - - - - 5,352,978
Security of Persons and Property 41,414,737 - - - 418,819 41,833,556
Transportation 4,371,856 - 3,238,244 - 1,944,329 9,554,428
Debt Service:
Principal 582,993 - 197,376 - 1,122,733 1,903,102
Interest and Other Costs 152,118 - 7,969 - 755,232 915,318
Capital Outlay 3,640,041 - - 4,468,927 740,165 8,849,133
Total Expenditures 96,285,807 - 3,443,588 4,468,927 5,946,305 110,144,627
Excess(Deficiency)of Revenues
Over(Under)Expenditures 12,185,110 6,002,286 (1,131,841) 1,384 5,516,875 22,573,814
OTHER FINANCING SOURCES(USES):
Issuance of Debt 3,624,740 - - - - 3,624,740
Insurance Recoveries 249,217 - - 20,000 228,154 497,371
Sales of Capital Assets 10,000 - - - - 10,000
Transfers In(Note 4) 6,294,747 - 1,060,816 755,901 2,260,204 10,371,667
Transfers Out(Note 4) (2,056,005) (6,002,286) - (1,242,365) (1,830,179) (11,130,834)
Total Other Financing Sources(Uses) 8,122,699 (6,002,286) 1,060,816 (466,464) 658,179 3,372,944
Net Change in Fund Balance 20,307,809 - (71,025) (465,080) 6,175,054 25,946,758
Fund Balance-Beginning 58,171,880 - 2,350,156 16,134,370 28,909,107 105,565,513
Fund Balance-Ending $ 78,479,689 $ - $ 2,279,131 $ 15,669,290 $ 35,084,160 $ 131,512,270
The notes to the basic financial statements are an integral part of this statement.
40
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN
FUND BALANCES OF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES
December 31,2023
Net change in governmental fund balance per Statement of Revenues,Expenditures and Changes in Fund Balance $ 25,946,758
Amount reported as change in net position in the Statement of Activities are different because:
Government funds record capital outlay as expenditures.However,in the statement of activities the cost of those
assets is allocated over their estimated useful lives and reported as depreciation expense.This is amount by which
capital exceeds depreciation:
Capital outlay 8,849,133
Health and human resources capital outlay 117,561
Transportation capital outlay 4,924,116
Depreciation expense not recorded in governmental funds (19,020,300)
(5,129,490)
Governmental funds report sales of assets as other financing sources while the Statement of Activities reports only the
gain or loss on sales of capital assets. (456,698)
Certain capital and joint venture activities that do not use or provide current financial resources but increase net
position. 2,225,135
Debt proceeds are reported as financing sources in governmental funds and thus contribute to change in fund
balances.In the government-wide statements,however,issuing debt increases long-term liabilities in the statement of
net position and does not affect the statement of activities. (3,624,740)
Payment of principal of long-term debt consumes the current financial resources of governmental funds but has no
effect on the net position:
Payment of bonded debt and other[abilities 1,320,109
Subscription liability 360,545
Lease liability 222,448
1,903,102
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in
the funds:
Amortization of bond premium 190,426
Business and occupation taxes 147,358
Interest receivable (55,369)
Other unavailable revenue 1,290,349
Property taxes 77,185
1,649,949
Developer contributions and annexation of infrastructure assets are reported as revenue in the statement of activities,
but do not provide current financial resources and are not reported as fund revenue. 845,968
Some expenses recoded in the Statement of Activities do not require the use of current financial resources and
therefore are not reported as expenditures in governmental funds:
Change in accrued interest payable (6,199)
Change in compensated absences payable (145,330)
Change in net pension liability or asset 4,361,238
Change in OPEB liability 1,648,814
5,858,523
Internal service funds are used by management to charge the costs of certain activities,such as insurance and fleet
maintenance,to individual funds. The net revenue(expense)of certain internal service funds is reported with
governmental activities. 3,590,547
Total Transition Entries 6,862,297
Net Position of Governmental Activities as reported on the statement of net position $ 32,809,055
The notes to the basic financial statements are an integral part of this statement.
41
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
GENERAL FUND
For the Year Ended December 31,2023
Budget Amounts
Variance with Final
Final Actual Budget Positive
Original Adopted Results (Negative)
REVENUES:
Taxes:
Business and Occupation $ 5,480,960 $ 5,680,960 $ 12,051,586 $ 6,370,626
Excise 539,814 539,814 495,864 (43,950)
Interfund Utility 6,776,697 6,776,697 6,018,177 (758,520)
Property 24,016,247 24,016,247 24,202,184 185,937
Retail Sales&Use 23,235,763 23,235,763 26,708,818 3,473,055
Utility 8,764,647 8,764,647 11,126,882 2,362,235
Charges for Services 9,138,246 9,724,574 10,237,142 512,568
Fines and Forfeitures 422,975 422,975 2,578,194 2,155,219
Intergovernmental 6,162,537 6,655,531 6,591,587 (63,944)
Investment Earnings 366,700 366,700 2,280,644 1,913,944
Licenses and Permits 2,511,364 2,511,364 2,850,318 338,954
Miscellaneous 1,183,784 1,289,894 1,586,796 296,902
Total Revenues 88,599,734 89,985,166 106,728,192 16,743,026
EXPENDITURES:
Current:
Culture and Recreation 15,493,032 16,062,976 15,535,160 527,816
Economic Environment 4,552,809 5,645,097 4,532,902 1,112,195
General Government 19,303,028 19,789,328 17,410,720 2,378,608
Health and Human Services 3,696,680 5,164,408 3,292,302 1,872,106
Physical Environment 5,395,263 5,559,763 5,352,978 206,785
Security of Persons and Property 44,424,918 44,943,928 41,191,202 3,752,726
Transportation 4,634,919 4,727,719 4,371,856 355,863
Debt Service:
Principal - - 582,993 (582,993)
Interest and Other Costs - - 152,118 (152,118)
Capital Outlay 10,000 144,900 3,640,041 (3,495,141)
Total Expenditures 97,510,649 102,038,119 96,062,272 5,975,847
Excess (Deficiency) of Revenues Over (Under)
Expenditures (8,910,915) (12,052,953) 10,665,920 22,718,873
OTHER FINANCING SOURCES (USES):
Insurance Recoveries 25,000 136,900 249,217 112,317
Issuance of Debt - - 3,624,740 3,624,740
Sales of Capital Assets - - 10,000 10,000
Transfers In(Note 4) 2,565,692 7,703,978 6,432,311 (1,271,667)
Transfers Out(Note 4) (632,700) (5,835,588) (951,550) 4,884,038
Total Other Financing Sources or Uses 1,957,992 2,005,290 9,364,718 7,359,428
Net Change in Fund Balance (6,952,923) (10,047,663) 20,030,638 30,078,302
Fund Balance-Beginning 16,428,633 25,688,907 25,688,907 -
Fund Balance-Ending $ 9,475,710 $ 15,641,244 $ 45,719,546 $ 30,078,302
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Cumulative Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 30,889,815
The Fire,Relief&Pension Fund is combined with
the General Fund for purposes of GASB Statement 73 1,870,328
Fund Balance-Ending(GAAP) $ 78,479,689
The notes to the basic financial statements are an integral part of this statement.
42
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
AMERICAN RESCUE PLAN ACT (ARPA) FUND
For the Year Ended December 31 ,2023
Budget Amounts
Variance with Final
Final Actual Budget Positive
Original Adopted Results (Negative)
REVENUES:
Intergovernmental $ 4,030,000 $ 6,002,286 $ 6,002,286 $ -
Total Revenues 4,030,000 6,002,286 6,002,286 -
EXPENDITURES:
Excess (Deficiency) of Revenues Over (Under)
Expenditures 4,030,000 6,002,286 6,002,286 -
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 4) (4,030,000) (6,002,286) (6,002,286) -
Total Other Financing Sources or Uses (4,030,000) (6,002,286) (6,002,286) -
Net Change in Fund Balance - - - -
Fund Balance-Beginning - - - -
Fund Balance- Ending $ - $ - $ - $ -
The notes to the basic financial statements are an integral part of this statement.
43
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
ARTERIAL STREET FUND
For the Year Ended December 31 ,2023
Budget Amounts
Variance with Final
Final Actual Budget Positive
Original Adopted Results (Negative)
REVENUES:
Charges for Services $ - $ 149,740 $ 231,440 $ 81,700
Intergovernmental 3,643,000 5,986,229 1,629,408 (4,356,821)
Investment Earnings 8,000 58,000 93,986 35,986
Miscellaneous 332,500 357,400 356,913 (487)
Total Revenues 3,983,500 6,551,369 2,311,747 (4,239,622)
EXPENDITURES:
Current:
Transportation 9,155,394 16,343,774 3,238,244 13,105,530
Debt Service:
Principal 197,400 197,400 197,376 24
Interest and Other Costs 8,100 8,100 7,969 131
Total Expenditures 9,360,894 16,549,274 3,443,588 13,105,686
Excess (Deficiency) of Revenues Over (Under)
Expenditures (5,377,394) (9,997,905) (1,131,841) 8,866,064
OTHER FINANCING SOURCES (USES):
Transfers In (Note 4) 5,101,692 8,874,866 1,060,816 (7,814,050)
Total Other Financing Sources or Uses 5,101,692 8,874,866 1,060,816 (7,814,050)
Net Change in Fund Balance (275,702) (1,123,039) (71,025) 1,052,014
Fund Balance-Beginning 965,783 2,350,156 2,350,156 -
Fund Balance-Ending $ 690,081 $ 1,227,117 $ 2,279,131 $ 1,052,014
The notes to the basic financial statements are an integral part of this statement.
44
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
MAJOR PROPRIETARY FUNDS
ENTERPRISE FUNDS
The City's enterprise funds are used to account for operations that are financed and operated in a
manner similar to private business operations. The goods and services these funds provide to the
general public are primarily financed by service charges. Enterprise funds are self-supporting and
use the accrual method of accounting. Auburn has five major enterprise funds.
The Water Fund
This fund accounts for all maintenance, construction, and debt service requirements associated with
Auburn's water system.
The Sanitary Sewer Fund
This fund accounts for maintenance, construction, and debt requirements for Auburn's sanitary
sewer system.
The Storm Drainage Fund
This fund accounts for the maintenance, construction and debt service requirements of Auburn's
storm drainage system.
The Solid Waste Fund
Garbage collection services for the City are accounted for in this fund, supported almost entirely
by garbage collection fees. Expenses include payment to the City's garbage contractor and other
service charges.
The Airport Fund
Provides accounting of the activities of the Auburn Municipal Airport. Sources of income for the
fund are leases, rentals, fuel charges, investment interest, and grant funding as available.
45
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31,2023
Governmental
Enterprise Funds Activities
Non-Major Total
Sanitary Storm Solid Enterprise Funds Enterprise Internal
Water Sewer Drainage Waste Airport (Cemetery) Funds Service Funds
ASSETS:
Current Assets
Cash and Cash Equivalents $ 8,685.016 $ 17,175,012 $ 8,613,362 $ 2,365,642 $ 1,707.104 $ 1.831.158 $ 40,377.294 $ 18,736,068
Investments 10,156,800 9,982,350 14,561,200 - - - 34.700,350 -
Restricted Cash:
Bond Payments and Customer Deposits 2,527,720 446,916 677,213 - 135,092 - 3,786,941 -
Bond Reserve 2,058,758 290,549 587,743 - - - 2,937,050 -
Customer Accounts 2,393,037 4,543,509 1,900.474 128,801 10,587 - 8,976,408 66,382
Other Receivables 73,490 150,999 64,319 19 193,572 - 482,399 38.995
Due From Other Governmental Units 215,978 - 3.472 39,912 439,331 - 698,692 17,015
Inventories 358,488 8.611 10,619 - 42,836 8.119 428,673 488.368
Total Current Assets 26,469,286 32,597,945 26.418.403 2,534,374 2,528,522 1,839,277 92,387,808 19,346,828
Noncurrent Assets
Long-Term Contracts and Notes - 578,400 - - 6.885,999 - 7,464,399 Net Pension Asset 987,605 575,157 819,650 - 113,275 213,825 2,709,512 962,089
Capital Assets Not Being Depreciated:
Land 1,283,524 1,695,023 5,937,014 - 3,919,049 342,836 13,177,445 -
Construction in Progress 2,441,866 865,040 1,732,453 - 1,240.534 91,462 6,371,354 319,059
Intangible-Water Rights 9.693,578 - - - - - 9,693,578 -
Total Capital Assets Not Being Depreciated 13,418,968 2,560,063 7,669,467 - 5,159,583 434,297 29,242,377 319,059
Capital Assets Being Depreciated.
Buildings and Equipment 2,509,599 1,304.181 282.112 496.618 3.094,307 997,334 8,684,150 33,293.956
Improvements Other Than Buildings 173,862,068 115,366,334 94,605,930 - 13.978,824 1,558,172 399,371,328 697.738
Right of Use(Leases) - - - - - - - 216,734
Right of Use(Subscriptions) - - - - - - - 1,285,570
Accumulated Depreciation (76,767,847) (45.836.068) (38,693,562) (496,618) (10,675,784) (1,732,465) (174,202,345) (22,994,477)
Total Capital Assets Being Depreciated 99,603,819 70,834,447 56,194,479 - 6.397,347 823,040 233,853,133 12,499,521
Total Noncurrent Assets 114,010,392 74,548,066 64,683,596 - 18,556,203 1,471,163 273,269,421 13,780.669
Total Assets 140,479,679 107,146,011 91,101,999 2,534,374 21,084,726 3,310,440 365,657,229 33 127,497
DEFERRED OUTFLOW OF RESOURCES:
Deferred Outflow from Bond Refunding 78,146 34,939 29,232 - - - 142,317 -
Deferred Outflow Related to Pensions 779,151 481,262 732,304 70,567 53,594 144,202 2,261,080 934,141
Total Deferred Outflow Of Resources 857,297 516,201 761,536 70.567 53,594 144,202 2,403,397 934,141
LIABILITIES:
Current Liabilities
Current Payables 846,805 291,877 784.815 1,337.883 382,233 72,962 3,716,574 843.386
Claims Payable(Incurred but not Reported) - - - - - - - 1,192,000
Loans Payable-Current 378,964 288,262 - - - - 667,226
Employee Leave Benefits 209,579 172,653 283,908 3,496 14,840 30,756 715,232 278,285
Leases and SBITA Payable-Current - - - - - - - 359,313
Revenue Bonds Payable-Current 1,389,765 268,823 466,413 - - - 2,125,000 Payable From Restricted Assets:
Accrued Interest 937,892 118,189 207,378 - - - 1,263,459 -
Liabilities-Deposits 102,700 61,527 3,422 - 135,092 - 302,741 -
Total Current Liabilities 3,865,704 1,201,330 1,745,935 1,341,379 532,165 103,718 8,790,232 2,672,985
Noncurrent Liabilities-
Employee Leave Benefits 70,994 58,486 96,174 1,184 5,028 10,419 242,285 94,269
Leases and SBITA Payable - - - - - - - 664.898
Loans Payable-Noncurrent 3,768,689 360,836 - - - - 4,129,525 Net Pension Liability 1.393,350 275,132 42,874 97.158 - - 1,808,514 890.257
Revenue Bonds Payable 21,230,590 2,372,150 4,495,407 - - - 28,098,146
Total Noncurrent Liabilities 26.463,623 3,066,604 4,634,455 98,342 5,028 10,419 34,278,471 1,649.424
Total Liabilities 30,329,327 4,267,934 6,380,390 1.439,721 537,193 114,137 43,068,703 4,322,408
DEFERRED INFLOW OF RESOURCES:
Deferred Inflow Related to Leases - - - - 6,970,678 - 6,970,678 -
Deferred Inflow related to Pensions 698,532 387,982 478,705 14,456 73,434 204,736 1.857,845 907.763
Total Deferred Inflow Of Resources 698,532 387,982 478,705 14,456 7.044.112 204,736 8,828,523 907,763
NET POSITION:
Net Investment in Capital Assets 86,494,102 70,140,645 58,932,418 - 11,556,930 1,257,338 228,381,433 11,794,369
Restricted
Debt Service 3,384,710 556.482 1,053.096 - - - 4,994,288 -
Pension 987,605 575,157 819,650 - 113,275 213,825 2,709,512 962.089
Unrestricted 19,442,700 31,734,012 24.199.276 1,150.764 1.886.810 1,664,606 80,078,167 16,075,009
Total Net Position $ 110,309,117 $103,006,296 $85.004,440 $ 1,150,764 $ 13557,015 5 3,135,769 $ 316,163,400 $ 28.831,467
Adjustment to reflect the consolidation
of internal service funds related to
enterprise funds 602,020
Net position of business-type activities $316.765,420
The notes to the basic financial statements are an integral part of this statement.
46
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31,2023
Governmental
Enterprise Funds Activities
Non-Major
Enterprise Total Internal
Sanitary Storm Solid Funds Enterprise Service
Water Sewer Drainage Waste Airport (Cemetery) Funds Funds
OPERATING REVENUES:
Charges for Services $ 18,588,136 $ 30,977,078 $ 11,856,237 $ 27,564,658 $ 828,257 $ 1,974,568 $ 91,788,934 $19,633,947
Other Operating Revenue - - - - 1,028,170 - 1,028,170 93,862
Total Operating Revenues 18,588,136 30,977,078 11,856,237 27,564,658 1,856,427 1,974,568 92,817,104 19,727,809
OPERATING EXPENSES:
Administration 7,178,499 4,225,476 4,311,901 4,269,583 376,554 622,629 20,984,641 2,279,612
Depreciation/Amortization 3,837,812 2,517,198 2,135,173 - 580,218 35,462 9,105,862 2,390,967
Operations&Maintenance 4,646,269 22,059,209 4,757,814 25,108,099 1,357,059 1,108,967 59,037,418 14,147,146
Other Operating Expenses - - - - 3,910 26,012 29,922 -
Total Operating Expenses 15,662,580 28,801,883 11,204,888 29,377,682 2,317,741 1,793,070 89,157,843 18,817,726
Operating Income or Loss 2,925,557 2,175,195 651,349 (1,813,023) (461,314) 181,498 3,659,261 910,083
NON-OPERATING REVENUE(EXPENSE):
Gain(Loss)on Lease Termination - - - - (1,064) - (1,064) -
Gain(Loss)on Sale of Capital Assets - - - - - - - 40,874
Interest Expense (587,330) (44,580) (113,250) - - - (745,160) (18,659)
Interest Revenue 1,120,737 1,340,868 974,160 188,914 222,636 89,984 3,937,300 761,940
Other Non-Operating Expenses (147,485) (87,907) (106,110) - - - (341,502) -
Other Non-Operating Revenue 367,702 45,888 551,652 121,418 460,650 810 1,548,120 905,144
Total Non-Operating Revenue(Expense) 753,625 1,254,269 1,306,452 310,332 682,222 90,794 4,397,694 1,689,299
Income(Loss)Before Contributions and
Transfers 3,679,181 3,429,464 1,957,802 (1,502,692) 220,908 272,292 8,056,955 2,599,382
CONTRIBUTIONS&TRANSFERS:
Capital Contribution 1,037,088 512,312 553,019 - - - 2,102,419 -
Transfers In(Note 4) - - - - - - - 2,527,729
Transfers Out(Note 4) (195,750) (259,111) (533,534) - - (163,265) (1,151,660) (616,903)
Total Contributions&Transfers 841,338 253,201 19,485 - - (163,265) 950,759 1,910,827
Change in Net Position 4,520,519 3,682,665 1,977,287 (1,502,692) 220,908 109,027 9,007,714 4,510,209
Net Position-Beginning 105,788,598 99,323,631 83,027,153 2,653,455 13,336,107 3,026,742 307,155,686 24,321,258
Net Position-Ending $ 110,309,117 ,03,006,296 ,,85,004,440 $ 1,150,764 $13,557,015 $ 3,135,769 1 316,163,400 $28,831,467
Change in net position from this statement 9,007,714
Adjustment to reflect the consolidation of internal service fund
activities related to enterprise funds 919,662
Change in net position of business-type activities $ 9,927,375
The notes to the basic financial statements are an integral part of this statement.
47
City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Fiscal Year Ended December 31,2023
Page 1 of 2
Non Major Government
Enterprise Activities
Sanitary Storm Solid Funds Internal
Water Sewer Drainage Waste Airport (Cemetery) Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Users $18,397,587 $30,938,192 $ 11,752,588 $28,532,075 $ 1,304,068 $ 1,974,568 $92,899,078 $ 19,827,280
Cash Paid to Suppliers for Goods&Services (7,786,222) (23,968,268) (4,854,855) (33,771,408) (1,093,775) (912,159) (72,386,686) (11,807,603)
Cash Paid to Employees (4,310,478) (2,773,647) (4,304,924) (385,865) (459,547) (817,387) (13,051,847) (5,971,305)
Other Cash Received 361,810 2,422 31,391 - 10,982 - 406,605 80,887
Other Non-Operating Revenue - - - - - 810 810 -
Other Cash Paid (147,485) (87,907) (106,110) - - - (341,502) -
Net Cash Provided(Used)by Operating Activities 6,515,212 4,110,793 2,518,090 (5,625,198) (238,271) 245,833 7,526,458 2,129,259
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating Grant (215,978) - 446,515 198,662 449,668 - 878,867 -
Transfers In - - - - - - - 2,527,729
Transfers Out (195,750) (259,111) (533,534) - - (163,265) (1,151,660) (616,903)
Net Cash Provided(Used)by Noncapital Financing Activities (411,727) (259,111) (87,019) 198,662 449,668 (163,265) (272,793) 1,910,827
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - 214,876
Purchase of Capital Assets (2,380,373) (620,355) (1,787,421) - (828,084) (50,627) (5,666,860) (4,783,447)
Contributed Capital 351,119 332,726 339,463 - - 1,023,308
Proceeds from Insurance Settlement 5,892 43,466 - - - - 49,358 824,257
Principal Payment on Debt (1,706,930) (543,582) (446,716) - - - (2,697,228) (373,782)
Interest Payment on Debt (972,389) (126,087) (213,038) - - - (1,311,513) (4,143)
Lease Principal Receipts - - - - 184,565 - 184,565 -
Lease Interest Receipts - - - - 127,568 - 127,568 -
Debt Proceeds 2,418,199 - - - - - 2,418,199 -
Net Cash Provided(Used)for Capital and Related Financing Activities (2,284,481) (913,831) (2,107,712) - (515,951) (50,627) (5,872,602) (4,122,238)
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Investments (10,037,950) (9,843,170) (9,711,499) - - - (29,592,619) -
Interest Received 928,398 1,050,690 826,645 188,914 95,157 89,984 3,179,787 761,940
Net Cash Provided(Used)in Investing Activities (9,109,553) (8,792,481) (8,884,854) 188,914 95,157 89,984 (26,412,832) 761,940
Net Increase(Decrease)in Cash and Cash Equivalents (5,290,549) (5,854,630) (8,561,496) (5,237,622) (209,397) 121,925 (25,031,769) 679,788
Cash and Cash Equivalents-Beginning of Year 18,562,043 23,767,107 18,439,813 7,603,264 2,051,593 1,709,233 72,133,053 18,056,280
Cash and Cash Equivalents-End of Year $ 13,271,494 $ 17,912,477 $ 9,878,317 $ 2,365,642 $ 1,842,196 $ 1,831,158 $ 47,101,284 $ 18,736,068
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 8,685,016 17,175,012 8,613,362 2,365,642 1,707,104 1,831,158 40,377,294 18,736,068
Restricted Cash-Bond Payments and Customer Deposits 2,527,720 446,916 677,213 - 135,092 - 3,786,941 -
Restricted Cash-Bond Reserve 2,058,758 290,549 587,743 - - - 2,937,050 -
Total Cash $ 13,271,494 $ 17,912,477 $ 9,878,318 $ 2,365,642 $ 1,842,196 $ 1,831,158 $ 47,101,285 $ 18,736,068
The notes to the basic financial statements are an integral part of this statement.
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City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Fiscal Year Ended December 31,2023
Page 2 of 2
Non Major Government
Enterprise Activities
Sanitary Storm Solid Funds Internal
Water Sewer Drainage Waste Airport (Cemetery) Total Service Funds
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income(Loss) $ 2,925,557 $ 2,175,195 $ 651,349 $ (1,813,023) $ (461,314) $ 181,498 $ 3,659,261 $ 910,083
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES:
Depreciation 3,837,812 2,517,198 2,135,173 - 580,218 35,462 9,105,863 2,390,967
Lease Revenue Classified as Operating Income and Financing Cash Flow - - - - (184,565) - (184,565) -
Other Non-Operating Revenue 361,810 2,422 31,391 - 9,829 810 406,262 79,835
Other Non-Operating Expense (147,485) (87,907) (106,110) - - - (341,502) -
Asset(Increases)Decreases:
Accounts Receivable (189,179) (38,886) (103,649) 967,417 (317,159) - 318,544 100,523
Miscellaneous A/R Revenue - - - - 976 - 976 -
Inventory (45,215) 4,256 (205) - (12,948) 1,965 (52,147) (93,299)
Lease Receivable - - - - 240,541 - 240,541 -
Liability Increases(Decreases):
Accounts&Vouchers Payable 141,505 (228,352) 262,660 (4,770,921) 191,402 17,355 (4,386,352) (1,210,142)
Deposits Payable (1,370) - - - 5,010 - 3,640 -
Wages&Benefits Payable (410,655) (255,129) (391,080) (6,082) - - (1,062,946) 005,781)
Compensated Absences Payable 42,433 21,996 38,562 (2,589) 5,748 8,743 114,893 57,073
Lease Deferred Inflows - - - - (296,009) - (296,009) -
Total Adjustments 3,589,656 1,935,598 1,866,741 (3,812,175) 223,043 64,335 3,867,197 1,219,177
Net Cash Provided(Used)by Operating Activities $ 6,515,212 $ 4,110,793 $ 2,518,090 $ (5,625,198) $ (238,271) $ 245,833 $ 7,526,458 $ 2,129,259
SCHEDULE OF NONCASH INVESTING,CAPITAL AND
FINANCING ACTIVITIES
Capital Assets Acquired by Contributed Capital 685,969 179,586 213,556 - - - 1,079,111 -
Increase(Decrease)in Fair Value of Investment (118,850) 139,180 282,851 - - - 303,181 -
Total Non Cash Investing,Capital and Financing Activities $ 567,119 $ 318,766 $ 496,407 $ - $ - S - $ 1,382,292 $ -
The notes to the basic financial statements are an integral part of this statement.
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City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
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City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
FIDUCIARY FUNDS
Fiduciary funds are used to account for assets held by the City of Auburn as a trustee or agent.
Fiduciary funds involve only the receipt, temporary investment, and remittance of fiduciary
resources to individuals, private organizations, and other governmental units.
FIDUCIARY FUNDS
Custodial Fund
This fund accounts for the funds over which the City strictly acts in a custodial capacity.
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City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
STATEMENT OF FIDUCIARY NET POSITION
December 31, 2023
Custodial
Fund
ASSETS:
Cash and Cash Equivalents $ 9,000,860
Receivables:
Customer Accounts 21,325
Total Assets 9,022,185
LIABILITIES:
Current Payables 121,609
Total Liabilities 121,609
NET POSITION
Restricted for Other Governments &Organizations 8,900,576
Total Net Position $ 8,900,576
The notes to the financial statements are an integral part of this statement.
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City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn, Washington
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
For the Fiscal Year Ended December 31, 2023
Custodial
Funds
ADDITIONS:
Contributions:
Other Governments $ 6,181,493
Tax, Fines, Permits Collection for Other Governments 1,555,859
Amounts collected for other organizations and individuals 56,750
Investment Interest 132,093
Total Additions 7,926,194
DEDUCTIONS:
Administrative Expenses $ 33,400
Payment to City for Services 334,076
Tax, Fines, Permits &Misc distributed to other governments 1,172,152
Distributions to other organizations and individuals 52,394
Total Deductions 1,592,022
Change in Net Position 6,334,172
Net Position - Janaury 1 2,566,404
Net Position - December 31st $ 8,900,576
The notes to the financial statements are an integral part of this statement.
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City of Auburn: 2023 Annual Comprehensive Financial Report Basic Financial Statements
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
City of Auburn
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2023
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 57
A. Reporting Entity 57
B. Basic Financial Statements 57
C. Measurement Focus, Basis of Accounting and Basis of Presentation 58
D. Budget and Budgetary Accounting 61
E. Assets, Liabilities, and Fund Balance 62
1. Deposits and Investments 62
2. Receivables 63
3. Interfund Receivables and Payables 63
4. Amounts Due From Other Governmental Units 63
5. Inventories and Prepaid Expenses 63
6. Restricted Assets 63
7. Interfund Transactions 63
8. Capital Assets 63
9. Pensions 64
10. Deferred Outflows/Inflows of Resources 64
11. Compensated Absences 65
12. Unearned Revenues 65
13. Net Position Components— Proprietary Funds 65
14. Fund Balance Components—Governmental Funds 65
F. Revenues, Expenditures and Expenses 67
G. Estimates 68
NOTE 2 — DEPOSITS AND INVESTMENTS 68
A. Deposits 68
B. Investments 68
NOTE 3 — PROPERTY TAXES 71
NOTE 4— INTERFUND ACTIVITY 72
NOTE 5 — DUE FROM OTHER GOVERNMENTAL UNITS 75
NOTE 6—CAPITAL ASSETS AND RIGHT TO USE ASSETS 76
NOTE 7— LONG-TERM LIABILITIES 81
NOTE 8— LEASES (LESSORS) 87
NOTE 9— PENSION PLANS 92
NOTE 10—OTHER POST-EMPLOYMENT BENEFITS 102
NOTE 11 —ASSOCIATION OF WASHINGTON CITIES EMPLOYEE BENEFIT TRUST ("Trust") 104
NOTE 12 —CONSTRUCTION COMMITMENTS 106
NOTE 13 —CEMETERY ENDOWED CARE FUND 106
NOTE 14—JOINT VENTURES/RELATED PARTY 106
NOTE 15 —JOINTLY GOVERNED ORGANIZATION / RELATED PARTY 111
NOTE 16—CONTINGENCIES AND LITIGATIONS 111
NOTE 17— RISK MANAGEMENT& INSURANCE 111
NOTE 18—TAX ABATEMENTS 113
NOTE 19 — REPORTING CHANGE 114
NOTE 20 —SUBSEQUENT EVENTS 114
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Auburn, King County, Washington, was incorporated in 1891. It operates under the laws of the State of
Washington applicable to a Non-Charter Code City under a Mayor/Council form of government. A full-time mayor
and seven part-time council members administer Auburn, all elected at-large to four-year terms. The City provides a
range of municipal services authorized by state law, including water services, sanitary sewer collection, solid waste
collection, storm drainage, a general aviation airport, a municipal cemetery, and a municipal golf course.
The financial statements of the City of Auburn have been prepared in conformity with generally accepted accounting
principles (GAAP), as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the
standard setting body for governmental accounting and financial reporting.
Effective for fiscal year 2023, the City did implement the following new accounting and reporting standard issued by
the Governmental Accounting Standards Board (GASB).
• GASB Statement No. 96— Subscription Based IT Arrangements (SBITAs). This statement establishes uniform
accounting and financial reporting requirements for SBITAs; thus, it improves the comparability of government's
financial statements; and enhances the understandability, reliability, relevance, and consistency of information
about SBITAs. All Software Contracts meeting GASB 96 criteria must report a liability and an intangible right to
use asset, along with essential information about the arrangement being disclosed on the financial statements,
A. Reporting Entity
In accordance with the criteria set forth in Statement No. 14 of the Governmental Accounting Standards Board (GASB)
the City's Annual Comprehensive Financial Report includes all funds controlled by the City.
Joint Ventures-Based on the criteria of Governmental Accounting Standards Board (GASB) Statement No. 14 as modified
by GASB Statements No. 34 and 61, the Valley Communications Center and South Correctional Entity Facility (SCORE)
are included in the accompanying government-wide statement of net position as a joint venture. (Refer to Notes 7 and
14).
Jointly Governed Organizations- The cities of Auburn, Algona and Pacific formed the Valley Regional Fire Authority
(VRFA) effective January 1, 2007. The VRFA is a separate municipal corporation of the State of Washington, organized
as a regional fire protection service authority under RCW 52.26. The VRFA is not financially accountable to the member
cities, none of the participating cities has an ongoing financial interest in the VRFA, and the VRFA is not financially
dependent upon any member city. The VRFA imposes its own property tax levy and fire benefit charge. As such, the
VRFA is not included in the City of Auburn's financial reporting entity. (Refer to Note 14)
B. Basic Financial Statements
The City's basic financial statements consist of government-wide financial statements and fund financial statements. The
government-wide financial statements, which include the statement of net position and the statement of activities,
summarize the entire operation of the City. The governmental fund financial statements, which include the balance
sheet, statement of revenues, expenditures and changes in fund balance, and statements of revenues, expenditures, and
changes in fund balance budget and actual, provide a more detailed level of reporting. The proprietary fund financial
statements, which include statement of net position, statement of revenues, expenses, and changes in net position and
statement of cash flows, provide a more detailed level of reporting.
The government-wide financial statements report information on all of the non-fiduciary activities of the City. For the
most part, the effect of interfund activity has been eliminated from these statements. Because governmental activities
are normally supported by taxes and intergovernmental revenue, while business-type activities are generally supported
through user fees and charges, governmental activities are reported separately from business-type activities on all
government-wide financial statements.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
The Statement of Net Position reports the assets, deferred outflows of resources, deferred inflows, and liabilities of the
primary government. The net position section of this statement represents the residual amount of assets and their
associated liabilities, deferred outflow, and deferred inflows of resources. The net position section is divided into three
categories. The first category is Net Investment in Capital Assets, which includes all capital assets, net of accumulated
depreciation, less the outstanding balances of any borrowing (bonds, loans) used for acquisition, construction, or
improvement of those assets. Capital assets cannot readily be sold and converted into cash. The second category is
Restricted Net Position, which includes those assets, net of their related debt that have a constraint placed on their use.
The constraints are either: 1) externally imposed by creditors, such as through debt covenants, grantors, contributors,
or laws and regulations of other governments, or 2) imposed by law through constitutional provisions or enabling
legislation. The final section is Unrestricted Net Position, and this represents net position that generally can be used for
any purpose. However, they are not necessarily in a spendable form, such as cash.
The statement of activities demonstrates the degree to which the direct expenses of various functions and activities of
the City are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function
or activity. The City's policy is to allocate indirect costs to a specific function or segment. Program revenues include 1)
charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by
a function or activity, and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or activity. Taxes and other items that are not properly included among function
or activity revenues are instead reported as general revenues.
Separate financial statements are included for governmental funds, proprietary funds, and fiduciary funds, even though
fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and
major individual enterprise funds are reported in separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity.
Each fund is accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of
resources, liabilities, deferred inflows of resources, fund balance/net position, revenue, and expenditures or expenses, as
appropriate. The City resources are allocated to, and accounted for in, individual funds according to the purpose for
which they are spent and how they are controlled.
The basis of accounting refers to the timing of when revenues and expenditures or expenses are recognized in the
accounts and reported in the financial statements.
The government-wide financial statements are reported using the economic resources measurement focus and the accrual
basis of accounting, as are the proprietary fund financial statements. Governmental fund financial statements are
reported using the current financial resources measurement focus and the modified accrual basis of accounting.
The modified accrual basis of accounting is followed in all governmental and permanent funds of the City. Under the
modified accrual basis of accounting, revenues are recognized when measurable and available. Revenues are generally
considered available if they are collected within the current period or soon enough thereafter to pay current liabilities.
The City considers property taxes as available if they are collected within 30 days after the year end. For derived tax
revenues, such as sales tax and utility business and occupation taxes, revenues are recognized in the period when the
underlying exchange has occurred. For imposed non-exchange taxes, such as property taxes, revenues are recognized
when the use of resources is permitted, or when resources are available. Grant revenue is recognized in the period in
which the expenditure occurs, and the eligibility requirements have been met. Non-exchange transactions, such as
contributions, are recognized when the donation eligibility requirements have been satisfied. Those specific major
revenue sources accrued are:
Property Taxes— King County and Pierce County collect property taxes and remit to the City daily or monthly.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Sales Tax Revenues—The State of Washington collects all sales taxes. Auburn's portion is remitted to the City by the
State monthly. The Sales and Use Tax revenue portion received from the state in January of the following year is accrued
in the current year since it is considered a material value and because of when the underlying transaction occurred and
the resources are considered to be measurable and available.
Grant Revenues—On cost reimbursement grants, grant revenue is recognized when the eligible expenditure is incurred.
Under the modified accrual basis, expenditures are recorded when the fund liability is incurred, except for the un-
matured interest and principal on general long-term debt,which is recognized when due, and for compensated absences
which are recorded as expenditures when liquidated from expendable available fund resources. Purchases of capital
assets from governmental funds are reported as expenditures during the year incurred and the asset is capitalized and
reported on the government-wide statement of net position. Long-term liabilities, including compensated absences not
currently due and payable, are also reported on the government-wide statement of net position.
The accrual basis of accounting is followed in all proprietary and custodial funds. Under the accrual basis of accounting,
revenues are recognized when earned and expenses are recorded when incurred.
The three broad fund categories and nine fund types presented in this report are described below:
1. Governmental Fund Types
All governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that
only current assets and current liabilities and deferred inflow of resources generally are included on these balance
sheets. Reported fund balance is considered a measure of "available spendable resources". Governmental fund
operating statements focus on measuring cash flows rather than net income; and present increases (revenues and
other financing sources) and decreases (expenditures and other financing uses) in net current assets.
The City reports the following major governmental funds:
General Fund- This is the City's general operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
American Rescue Plan Act Fund-The fund was created to track federal funding from the coronavirus rescue package
designed to facilitate the recovery from the devasting economic impacts and public health emergency effects of the
COVID-19 pandemic.
Arterial Street Fund-This fund is supported by the State of Washington's motor vehicle fuel tax and by various grants
and is used for major street construction.
Capital Improvement Fund- This fund accounts for major capital acquisitions, and streets and parks construction
projects, which are dependent on the real estate excise taxes, state, and federal grant programs.
The City reports the following fund groups as non-major governmental funds:
a. Special Revenue funds—These funds are used to account for the proceeds of specific revenue sources (other
than major capital projects) that are legally restricted to expenditures for specified purposes.
b. Debt Service funds—These funds account for the accumulation of resources for, and the payment of, general
long-term and special assessment debt principal, interest, and related costs. These funds also include the
local improvement districts (LID) guarantee fund which provides financial security for outstanding LID
bonds. No debt service funds are considered major funds and are reported within the"Other Governmental
Funds".
c. Capital Projects funds—These funds are used to account for financial resources to be used for the acquisition
or construction of major capital facilities other than those financed by proprietary funds.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
d. Permanent funds—These funds are used to account for resources that are legally restricted to the extent that
only earnings, and not principal, may be used for purposes of supporting a specific City program. The city
has one permanent fund, Cemetery Endowment.
2. Proprietary Fund Types
Financial statements for proprietary funds use the economic resources measurement focus and the accrual basis of
accounting. This means that all assets and all liabilities (whether current or non-current) associated with proprietary
fund activity are included on the Statement of Net Position. Under the accrual basis of accounting, revenues are
recognized when earned and expenses are recorded when incurred. The economic resources measurement focus is
applied in the determination of financial position, net income, and cash flow.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a
proprietary fund's principal ongoing operations. The principal operating revenue of the City's utility funds, other
enterprise funds, and internal service funds are charges to customers for sales and services, vehicle and computer
replacement, and insurance. Operating expenses for enterprise funds and internal service funds include the cost of
sales and services, administrative expenses, taxes, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as non-operating revenues and expenses, or as capital contributions.
Substantially all proprietary fund operating revenues are used as security for revenue bonds.
Enterprise funds are used to account for services to the general public where all or most of the costs, including
depreciation, are to be financed or recovered from users of such services. Utilities provided to residents are
accounted for in the water fund, sanitary sewer fund, storm drainage fund, and the solid waste fund.
The City reports the following major enterprise funds:
The Water Fund- This fund accounts for all revenues, expenses, maintenance, construction, and debt service
requirements associated with Auburn's water system.
The Sanitary Sewer Fund- This fund accounts for all revenues, expenses, maintenance, construction, and debt
requirements for Auburn's sanitary sewer system.
The Storm Drainage Fund- This fund accounts for all revenues, maintenance, construction, and debt service
requirements of Auburn's storm drainage system.
The Solid Waste Fund- Garbage collection services for the City are accounted for in this fund, supported almost
entirely by garbage collection fees. Expenses include payment to the City's garbage contractor and other service
charges.
The Airport Fund- Provides accounting of the activities of the Auburn Municipal Airport. Sources of income for the
fund are leases, rentals, fuel charges, investment interest, and grant funding as available.
The City reports the Cemetery fund as a non-major enterprise fund.
The Internal Service funds are used to account for the financing of goods and services provided to other funds,
departments, or governments on a cost reimbursement basis. The City uses internal service funds to account for its
fleet of vehicles, its maintenance and operation of facilities, the City-wide provision of computer hardware and
software services, the cost of employees affected by an occupational injury or illness, and its insurance premiums.
The City's internal service funds are comprised of the Insurance, Work Compensation Self Insurance, Facilities,
Information Services, and Equipment Rental funds.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
3. Fiduciary Fund Types
Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals,
private organizations, other governments, and/or other funds. Fiduciary funds are classified for accounting
measurement purposes as either a governmental fund or a proprietary fund. The Fiduciary Funds are not included
in the government-wide financial statements since they are not assets of the City available to support city programs.
The City's custodial funds function primarily as a clearing mechanism for cash resources which are collected by the
City, held for a period of time and then disbursed to authorized recipients.
D. Budget and Budgetary Accounting
The City of Auburn budgets in accordance with the Revised Code of Washington (RCW) 35A.33 for the general fund
and special revenue funds. For governmental funds, there are no substantial differences between the budgetary basis
and generally accepted accounting principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds,
but the financial statements include budgetary comparisons for the biennial budgeted governmental funds only. Budgets
established for proprietary and trust funds are "flexible budgets" used as managerial tools. and are not legally required
to be reported and, as such, are not reported in the Annual Comprehensive Financial Report (ACFR).
The biennial budget is proposed by the Mayor and adopted by the City Council with legal budgetary control at the fund
level; expenditures and other financing sources may not exceed budgeted appropriations at the fund level. The Mayor
may authorize transfers within funds; however, the City Council must approve by ordinance any amendments that
increase the total for the fund. At fiscal year-end any unexpended appropriation balances automatically carryforward
subject to the rules established in the enabling ordinance.
The City prepares the biennial budget on the modified accrual basis, which conforms to Generally Accepted Accounting
Principles (GAAP). The Annual Comprehensive Financial Report includes budgetary comparisons for those governmental
funds with legally adopted budgets. Budget amounts include the adopted current year budget appropriations and any
revisions made during the year.
State law establishes the budget process and the time limits under which a budget must be developed. The City follows
the procedures outlined below to establish its biennial budget:
a. Sixty days prior to each odd numbered fiscal year, the Mayor submits to the City Council a preliminary budget
for the biennium commencing the following January lst. The operating budget includes proposed expenditures
and funding sources.
b. Public hearings are conducted at the Auburn City Council Meetings to obtain taxpayer comments.
c. Prior to December 315t, the budget is legally enacted through passage of an ordinance.
d. The final operating budget as adopted is published and distributed after adoption. Copies of the budget are
made available to the public.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
ORIGINAL AND SUPPLEMENTAL APPROPRIATIONS
Original Budget Revisions Final Budget
Governmental Funds:
General Fund $ 98,143,349 $ 9,730.358 $ 107,873,707
Total Governmental Funds 98,143,349 9,730,358 107,873,707
Special Revenue Funds. -
American Rescue Plan 4,030,000 1,972,286 6,002,286
Arterial Street 9,360,894 7,188,380 16,549,274
Arterial Street Preservation 4,100,000 4,836,951 8,936,951
Business Improvement Area 90,000 45,941 135,941
Drug Forfeiture 392,671 70,000 462,671
Hotel/Motel Tax 177,100 8,000 185,100
Housing&Comm Development 650,000 366,330 1,016,330
Local Street 2,036,300 2,110,661 4,146,961
Recreation Trails - 66,210 66,210
Mitigation Fees 7,043,982 4,400,898 11,444,880
Total Special Revenue Funds 27,880,947 21,065,657 48,946,604
Total Budgeted Funds $ 126,024,296 $ 30,796,015 $ 156,820,311
For managerial purposes, the City of Auburn treats the General Fund, Cumulative Reserve Fund, and Fire Pension
Fund separately. However, for reporting purposes, these funds are presented in combination with the general fund.
The General Fund Statements of Revenues, Expenditures, and Changes in Fund Balance—Budget to Actual compares
only the General Fund as adopted in the budget along with the related revenues and expenditures. It does not
include the budget or actual data for the Cumulative Reserve Fund and the Fire Pension Fund. The Statements of
Revenues, Expenditures, and Changes in Fund Balance — Budget to Actual is also presented for the Cumulative
Reserve Fund and Fire Pension Fund under the section Required Supplementary Information.
E. Assets, Liabilities, and Fund Balance
1. Deposits and Investments
It is the City's policy to invest all temporary cash surplus. At December 31, 2023, the Washington State Local
Government Investment Pool (LGIP) was holding $125,693,869 in short-term investments. This amount is classified
on the Statement of Net Position as part of the line-item cash and cash equivalents. The interest on these investments
is prorated to the various funds based upon ownership of investments. For purposes of the Statement of Cash Flows,
cash and cash equivalents includes cash on deposit with financial institutions in both demand and time deposit
accounts, and amounts invested in the Local Government Investment Pool, administered by the State Treasurer's
Office. The State Finance Committee is the administrator of the statute that created the pool and adopts appropriate
rules. The State Treasurer's Office is responsible for establishing the investment policy for the pool and reviews it
annually.Any proposed changes are reviewed by the LGIP Advisory Committee.The terms of the policy are designed
to ensure the safety and liquidity of the funds deposited in the LGIP.
The City, by state law, is authorized to purchase certificates of deposit issued by Washington State depositories that
participate in Washington Public Deposit Protection Commission (WPDPC), U.S. Treasury and Agency securities,
banker's acceptances, and repurchase agreements. The City purchases repurchase agreements only from institutions
that use authorized securities for collateral. The City of Auburn also has signed a "master repurchase agreement"
with its primary bank, Key Bank.
For purposes of the statement of cash flows, all proprietary fund types and similar trust funds consider all highly
liquid investments (including restricted assets) with maturity of three months or less when purchased to be cash
equivalents.
Investments are recorded at fair value or amortized cost. Adjustments are made to cost for investments amortized
over the period to maturity in accordance with GASB Statement No. 31. The investment in the state investment
pool is valued at amortized cost.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
2. Receivables
Taxes receivable consist of property taxes (see Note 3). Accrued interest receivable consists of amounts earned on
notes and contracts at the end of the year.
Customer accounts receivable consist of amounts owed by private individuals or organizations for goods and services
provided. Uncollectible amounts are considered immaterial, and the direct write-off method is used.
Special assessments are levied against certain property owners and become liens against the property benefited by
the improvement. Special assessments receivable consists of current assessments, which are due within one-year,
delinquent assessments remaining unpaid after the due date, and unearned, uncollected assessments, which have
been levied, but are not due within one year.
Other receivables include utility taxes due from private organizations, city assessed business and occupation tax, and
customer accounts receivable, which consist of amounts owed from private individuals or organizations for goods
and services, including amounts owed for which billings have not been prepared. Notes and contracts receivable
consist of amounts owed on open accounts from private individuals or organizations for goods and services
rendered.
3. Interfund Receivables and Payables
These accounts include all interfund receivables and payables. A separate schedule of interfund activity is furnished
in Note 4.
4. Amounts Due From Other Governmental Units
This account includes amounts due from other governments for grants, entitlements, and charges for services. A
schedule by fund of amounts due from other governmental units is presented in Note 5.
5. Inventories and Prepaid Expenses
Government fund types recognize the cost of inventory items and prepaid expenses (expenses that benefit future
periods) as assets at the time of purchase. Once the inventory items have been consumed or goods and services
associated with the prepaid items have been received, expenditure is recognized. In enterprise and internal service
funds, inventories are valued at cost using the weighted average costing method.
6. Restricted Assets
In accordance with the utility bond ordinances, state law, or other agreements, separate restricted assets have been
established. These assets are restricted for specific purposes including the establishment of bond reserve funds,
financing the ongoing capital improvement programs of the various utilities, customer deposits, nonexpendable
permanent cemetery endowment and other purposes.
7. Interfund Transactions
During normal operations, the City has numerous transactions between City funds. Interfund services provided and
used, such as buying goods and services, are recorded as revenues in the internal service funds and expenditures in
the paying fund. Transfers between funds are included as "other financing sources or uses" in governmental fund
types and as other items in proprietary fund types.
8. Capital Assets
Capital assets are recorded at historical cost when known or at estimated historical cost when actual costs are not
known. Infrastructure, such as roads, bridges, and water mains, is reported in the applicable government or business-
type activities columns in the government-wide statement of net position. All infrastructure costs have been
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
calculated and are reported. Government donated capital assets are stated at their acquisition value on the date
donated.
Major outlays for capital assets and improvements are capitalized as projects are constructed. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
For proprietary funds, interest costs incurred to bring certain assets to the condition and location necessary for their
intended use are capitalized as part of the historical cost of acquiring the assets.
Capital assets of enterprise and internal service funds are recorded at cost. The capital assets of the airport are carried
at cost and include those acquired with capital contributed by the Federal Government.
Capital assets of all funds are depreciated, and are calculated on the straight-line method using estimated lives as
follows:
Capitalization Depreciation Estimated Useful
Asset Threshold Method Life
Building $5,000 Straight-line 10-50 years
Other Improvements $5,000 Straight-line 10- 50 years
Equipment/Machinery $5,000 Straight-line 3 -20 years
Infrastructure $5,000 Straight-line 5 - 75 years
Utility Plant $5,000 Straight-Line 25 -50 years
Depreciation for intangibles is computed on the straight-line method over the estimated useful life of 3 - 50 years.
At the inception of leases at the government fund reporting level, the net present value of future minimum lease
payments allocable to the capital asset is reflected as expenditures and an "other financing source" of an equal
amount.
9. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of all state sponsored pension
plans and additions to/deductions from those plans' fiduciary net position have been determined on the same basis
as they are reported by the Washington State Department of Retirement Systems. For this purpose, benefit payments
(including refunds of employee contributions) are recognized when due and payable in accordance with the benefit
terms. Investments are reported at fair value.
The net pension assets, deferred outflows, net pension liabilities and deferred inflows of the various pension plans
are allocated on the proprietary fund statements and government-wide statements based on the number of City
employees by fund participating in the plans. Since PERS 1 and LEOFF1 are closed plans, PERS 1 is allocated using the
PERS 2/3 allocation percentages. LEOFF 1 is 100percent police.
Related restricted net position of the net pension asset is calculated using the GASB preferred method which is equal
to the net pension asset balance, excluding deferred inflows and deferred outflows.
10. Deferred Outflows/Inflows of Resources
Deferred outflow of resources represents a consumption of net assets that applies to future periods and will not be
recognized as an outflow (expense/expenditure) until that reporting period. Deferred inflow of resources represents
an acquisition of net assets that applies to future periods. The difference between the carrying amount of redeemed
and/or defeased debt and its reacquisition price is the deferred amount on refunding and is amortized over the
remaining life of the debt, or the life of the new debt,whichever is shorter. Deferred outflows and deferred inflows
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
of resources related to pensions are reported for differences between expected and actual experience, changes of
assumptions, and differences between projected and actual returns on pension plan investments.
11. Compensated Absences
City employees accrue vacation leave at a variable rate based on years of service. In general, employees are allowed
to accumulate vacation leave up to what would be earned in two years.
Unaffiliated employees accrue sick leave at the rate of eight hours per month up to 960 hours. Sick leave
accumulations over 960 hours at year-end are paid at 25%. Sick leave is not paid upon termination except in some
instances upon separation in good standing, where employees hired before 12/31/1984 can be reimbursed at their
current rate for unused sick leave up to a maximum of 960 hours, at a rate based on years of service. The City's
union contracts have varied sick leave accruals and payout options.
In general, non-exempt employees can accrue up to 80 hours of compensatory time. The City reports compensated
absences as liabilities in the government-wide statement of net position and in proprietary funds. Vacation,
compensatory time, and sick leave are calculated separately for each employee using the rules described above. The
reporting format is in compliance with GASB statement No. 16.
Governmental funds recognize expenditures for vacation, sick, and compensatory time when paid. Proprietary
funds recognize the expense and accrue a liability for vacation and sick leave pay as the leave is earned. All
compensated absence liabilities include salary-related payments, where applicable.
12. Unearned Revenues
This account reflects the amounts of taxes and other long-term receivables for which the revenue recognition criteria
have not been met. It also reflects prepayments on accounts and grants received in advance.
13. Net Position Components — Proprietary Funds
In proprietary funds, net position is generally restricted in connection with restricted assets or for legal segregation.
These restrictions are identified on the statement of net position of each fund type. In order to calculate the amounts
to be reported as restricted net position and unrestricted net position a flow assumption is made. It is the City's
policy to consider restricted net position to have been depleted before unrestricted net position.
The City holds and administers a Utility System Rate Stabilization Fund. The City may, by ordinance, withdraw
from the Rate Stabilization Fund for inclusion in the net revenue of the Utility System at any time for any current
fiscal year of the Utility System, except that the total amount withdrawn from the Rate Stabilization Fund in any
fiscal year may not exceed the total debt service of the Utility System in that year.
14. Fund Balance Components—Governmental Funds
Fund balance is presented in the governmental fund financial statements and represents the difference between assets
and liabilities reported within the governmental fund. Beginning with the most restrictive constraints, fund balance
amounts are reported in the following categories:
a. Nonspendable fund balance includes items that cannot be spent. This includes activity that is not in a
spendable form (investments, prepaid amounts, long-term portion of loans/notes receivable, or property
held for resale unless the proceeds are restricted, committed or assigned) and activity that is legally or
contractually required to remain intact.
b. Restricted fund balance is externally (outside the City) enforceable limitations imposed by creditors,
grantors, contributors, laws and regulations of other governments, or laws through constitutional
provisions or enabling legislation.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
c. Committed fund balance is self-imposed limitations imposed at the highest level of decision-making
authority, namely, Mayor and City Council. Mayor and City Council approval by ordinance is required
to commit, modify, or rescind resources.
d. Assigned fund balance includes amounts that are constrained by the City's intent to be used for a specific
purpose but are neither restricted nor committed. It is the City's policy that the Finance Director shall
have the authority to assign amounts of fund balance to a specific purpose; however, before expenditure,
amounts must be appropriated by the City Council which is often adopted by City Council in the biennial
budget ordinance. For governmental funds, other than the General Fund, this is the residual amount
within the fund that is not restricted or committed.
e. Unassigned fund balance is the residual amount of the General Fund not included in the four categories
described above. Also, any deficit fund balances within the other governmental fund types are reported
as unassigned.
When expenditure is incurred for purposes for which both restricted and unrestricted resources are available, it is
the City's policy to use restricted resources first. When expenditures are incurred for purposes,for which unrestricted
(committed, assigned, and unassigned) resources are available, and amounts in any of these unrestricted
classifications could be used, it is the City's policy to spend committed resources first, then assigned and unassigned,
in that order.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
The following shows the composition of the fund balance of the governmental funds for the fiscal year ended December
31, 2023:
City of Auburn, Washington
Governmental Funds Balance Details
December 31,2023
Major
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvements Funds Funds
Nonspendable
Inventory and Prepaids $ 63,786 $ - $ - $ - $ 63,786
Permanent Cemetery Endowment - - - 2,151,308 2,151,308
Total Nonspendable 63,786 - - 2,151,308 2,215,094
Restricted
Arterial Street Preservation Fund - - - 100,855 100,855
City Tourism Promotion - - - 506,580 506,580
Community Development Block Grant Program - - - 42,904 42,904
Drug Investigation and Enforcement - - - 908,127 908,127
Fire Pension 1,870,328 - - - 1,870,328
Major Street Construction - 2,279,131 - - 2,279,131
Opioid Settlement 72,471 - - - 72,471
Recreational Trail Development - - - 104,169 104,169
REET 1 Allowable Projects - - 6,909,748 - 6,909,748
REET 2 Allowable Projects - - 7,898,109 - 7,898,109
Street and Fire Service Mitigation Fees - - - 16,264,090 16,264,090
Total Restricted 1,942,799 2,279,131 14,807,858 17,926,724 36,956,512
Committed
Arterial Street Presevation Fund - - - 5,453,137 5,453,137
Local Street Improvements - - - 6,325,605 6,325,605
Total Committed - - - 11,778,743 11,778,743
Assigned
Appropriations Over Estimated Revenue 10,479,588 - - - 10,479,588
Arterial Street Preservation Fund - - 861,433 219,029 1,080,462
Cemetery Capital Enhancement and Maintenance - - - 238,902 238,902
Debt Service - - - 483,916 483,916
Downtown Infrastructure Improvements - - - 485,926 485,926
Drug Investigation and Enforcement - - - 51,239 51,239
Local Street Improvements - - - 46,852 46,852
Parks and Trails Construction Projects - - - 1,589,295 1,589,295
Recreation Trail Development - - - 4,851 4,851
School Administration Fees - - - 107,376 107,376
Total Assigned 10,479,588 - 861,433 3,227,386 14,568,407
Unassigned
Unassigned 65,993,516 - - - 65,993,516
Total Unassigned 65,993,516 - - - 65,993,516
Total $ 78,479,689 $ 2,279,131 $ 15,669,290 $ 35,084,160 $ 131,512,270
F. Revenues, Expenditures and Expenses
Operating revenues and expenses for the proprietary fund are those that result from providing services and producing
and delivering goods and/or services in connection with a proprietary fund's principal ongoing operations. For the
city, operating expenses for proprietary funds and internal service funds include the cost of sales and services,
administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are
reported as non-operating revenues and expenses.
Contributions of capital in proprietary fund financial statements arise from internal and external contributions of capital
assets or from grants or outside contributions of resources restricted to capital acquisition and construction.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Transfers between government and business-type activities on the government-wide statement of activities are reported
as general revenues. Transfers between funds reported in the governmental activities' column are eliminated, as are
transfers between funds reported in the business-type activities column.
G. Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United
States requires management to make estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results may differ from those estimates.
NOTE 2 — DEPOSITS AND INVESTMENTS
A. Deposits
On December 31, 2023, the carrying amount of the City's cash demand deposits with Key Bank totaled $17,258,964
while the bank balance was $23,504,000. In addition, the balance of the City's interest-bearing checking account with
Pacific Premier Bank totaled $ 11,230,359. Furthermore, there was $17,600 in petty cash ($10,000 in the Drug Forfeiture
Fund to be used for enforcements purposes, $7,600 in various petty cash and cashier change funds).
Custodial Credit Risk
Custodial credit risk is the risk associated with the failure of a depository financial institution. In the event of a depository
financial institution's failure, it is the risk that the City would not be able to recover its deposits or collateralized securities
that are in the possession of the outside parties. The City minimizes custodial credit risk by following the restrictions set
forth in state law.
The Federal Deposit Insurance Corporation (FDIC) insures the City's deposits up to $250,000. The Washington Public
Deposit Protection Commission (WPDPC) (established under Chapter 39.58 of the Revised Code of Washington)
constitutes a multiple financial institution collateral pool. Pledged securities under the WPDPC collateral pool are held
by the WPDPC's agent in the name of the collateral pool.
B. Investments
As required by State law, all investments of the City's funds are obligations of the U.S. Government, or deposits with
Washington State banks that participate in the WPDPC. Pension and permanent funds are not subject to these limitations.
Investments that are not Measured at Fair Value
On December 31, 2023, the City had the following investments amortized, at cost:
Amortized
Investment Type Cost
State investment pool (LGIP) $ 125,693,869
$ 125,693,869
The City participates in the Local Government Investment Pool (LGIP). The LGIP meets the maturity, quality,
diversification, and liquidity requirements as set forth in GASB Statement 79. The LGIP is an unrated external investment
pool, and was authorized by Chapter 294, Laws of 1986, and is managed and operated by the Washington State
Treasurer. The LGIP does not have any legally binding guarantees of share values. The LGIP does not impose liquidity
fees or redemption gates on participant withdrawals. All temporary investments such as the State Investment Pool are
stated at amortized cost.
The Office of the State Treasurer prepares a stand-alone LGIP financial report. A copy of the report is available from
the Office of the State Treasurer, PO Box 40200, Olympia,Washington 98504-0200, online at http://www.tre.wa.gov.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Investments Measured at Fair Value
The city measures and reports investments at fair value using the valuation input hierarchy established by generally
accepted accounting principles, as follows:
• Level 1 —Quoted prices in active markets for identical assets or liabilities.
• Level 2 — These are quoted market prices for similar assets or liabilities, quoted prices for identical or similar
assets or liabilities in markets that are not active, or other quoted prices that are not observable.
• Level 3 — Unobservable inputs for an asset or liability.
As of December 31, 2023, the City had the following investments measured at fair value:
Fair Value Measurements Using
Significant
Quoted Prices in Other Significant
Active Markets for Observable Unobservable
Identical Assets Inputs Inputs
Investments by Fair Value Level 12/31/2023 (Level 1) (Level 2) (Level 3)
US Agency $ 83,827,850 $ 83,827,850 $ - $ -
Total Investments by Fair Value Level $ 83,827,850 $ 83,827,850 $ - $ -
The following is a reconciliation of the City's total cash and investments to the Government-Wide Statement of Net
Position as of December 31, 2023:
Cash and Investments
Reconciliation to the Government-Wide Statement of Net Position
Cash and Cash Equivalents $ 114,828,240
Investments 83,827,850
Temporarily Restricted:
Cash and Cash Equivalents 28,220,384
Permanently Restricted:
Cash and Cash Equivalents 2,151,308
Total $ 229,027,782
Bank Deposits $ 28,489,323
Investments not measured at fair value 125,693,869
Investments measured at fair value 83,827,850
Petty Cash Funds 17,600
Less: cash held in custodial funds (9,000,860)
Total $ 229,027,782
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an
investment. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment
policy limits the maximum maturity of an investment to not greater than five years, unless an investment is matched to
an anticipated future cash flow. The segmented time distribution presented in the schedule of investments by maturity
above indicates how the City has managed its interest rate risk.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law and
the City's investment policy limit the instruments in which the City may invest. These include:
1. US Treasury obligations
2. US Government Agency obligations and US Government Sponsored Enterprises (GSE's) which may include, but
are not limited to Federal Farm Credit Bank (FFCB), Federal Home Loan Bank (FHLB), Government National
Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal National
Mortgage Association (FNMA), Student Loan Marketing Corporation (SLMA), and/or Tennessee Valley
Authority (TVA).
3. Non-negotiable Certificates of Deposit of financial institutions which are qualified public depositories as defined
by RCW 39.58.010(2) and in accordance with the restrictions therein.
4. Bonds of the State of Washington and any local government in the State of Washington, General Obligation
bonds outside the State of Washington; at the time of investment, the bonds must have a rating of AA- from
S&P or Aa3 from Moody's, or higher. In the case of a split rating, the lower rating of these two rating agencies
will be used.
5. Washington Local Government Investment Pool (LGIP) managed by the Washington State Treasurer's Office.
6. Other investments authorized by law.
7. Time deposits and savings account deposits with Washington State Public Deposit Protection Commission
(PDPC) approved banks.
The City's municipal bond holding at time of purchase carried a AAA rating from S&P and a Aaa rating from Moody's.
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. The City
diversifies its investments by security type and institution. City investment policy restricts security holdings to 25 -40%
of the City's total investment portfolio in a single security type. This restriction excludes US Treasury obligations, US
Agency Securities and the Washington State Local Government Investment Pool which may comprise 100% of the total
investment portfolio.
Other information
Effective 2002, the City has established arrangements with Bank of New York for safekeeping of all investments.
The following is a schedule of investments by fund type:
State
Investment U.S.
Pool Agency Total
Governmental Funds $ - $ 49,127,500 $ 49,127,500
Enterprise Funds - 34,700,350 34,700,350
Local Government Investment Pool 125,693,869 - 125,693,869
Total $ 125,693,869 $ 83,827,850 $ 209,521,719
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
NOTE 3 - PROPERTY TAXES
Property taxes received during tax year 2023 were $24,519,933 including collection of prior year delinquent assessments.
Property taxes assessed for collection in tax year 2023 were based on a regular tax levy of $1.66241 per $1,000 on a
total 2022 assessed value of $17,563,516,672.
For levy year 2023, to be received in 2024, the City's regular tax levy is $1.39068 per $1,000 on a 2023 assessed
valuation of $17,869,840,473 as of December 31, 2023, for a total regular levy of $24,646,712. State law provides
that debt cannot be incurred in excess of the following percentages of the taxable property of the City.
1.50% of assessed value without a vote of the people
2.50% of assessed value with a vote of the people
The City has additional authority to incur the following debt as a percentage of total valuation.
2.50% of assessed value with a vote of the people, indebtedness is for utilities.
2.50% of assessed value with a vote of the people, indebtedness is for parks, or open space development.
At December 31, 2023, the debt limits for the City were as follows:
With a Vote
For Parks or
Without General For Open Space
a Vote Purposes Utilities Development Total
Item 1.50% 1.00% 2.50% 2.50% Capacity
Legal Limit $268,047,607 $178,698,405 $ 446,746,012 $ 446,746,012 $ 1,340,238,036
Outstanding indebtedness (34,509,925) - - - (34,509,925)
Margin available $233,537,682 $178,698,405 $ 446,746,012 $ 446,746,012 $ 1,305,728,111
The County Treasurer acts as an agent to collect property taxes levied in the county for all taxing authorities. Taxes are
levied annually on January 1 on property values listed as of the prior August 31. The County assesses property at 100%
of fair market value. A revaluation of all property is required every year, and a physical inspection is required at least
once every six years.
Property taxes levied by the County Assessor and collected by the County Treasurer become a lien on the first day of
the levy year and may be paid in two installments if the total amount exceeds $50. The first half of real property taxes
is due on April 30 and the balance is due October 31. Delinquent taxes bear interest at the rate of 12% and are subject
to additional penalties if not paid as scheduled. No allowance for uncollectable taxes is established because delinquent
taxes are considered fully collectable.
At year-end, property taxes are recorded as a receivable. During the year, property tax revenues are recognized when
cash is received.
1. The Washington State Constitution limits the total regular property taxes to 1% of assessed valuation or $10 per
$1,000 of value. If the taxes of all districts exceed this amount, each is proportionately reduced until the total is at
or below the 1% limit.
2. Washington State law in RCW 84.55.010 limits the annual growth of regular property taxes to the lesser of 1% or
the rate of inflation. With a vote of the majority of the voters within a taxing district, the 1% levy limitation can
be "lifted" and additional taxes may be levied.
3. The City may voluntarily levy taxes below the legal limit.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Special levies approved by the voters are not subject to the above limitations.
Property taxes are recorded as receivable and offset by an unearned revenue account when levied. Since state law
allows for the sale of property for failure to pay taxes, no estimate of uncollectible taxes is made.
NOTE 4- INTERFUND ACTIVITY
Transfers are legally authorized transfers of resources from a fund receiving revenue to the fund through which resources
are to be expended. The principal purposes for interfund transfers include interfund subsidies and transfers into capital
project and debt service funds, and to transfer special revenues towards allowable projects and programs. All transfers
either occur on a regular basis or are consistent with the purpose of the fund making the transfer. Interfund transfers for
the year ended December 31, 2023, were as follows:
Transfer From
Capital American Rescue Non-major Non-major Internal
Improvement Plan Act Governmental Water Sanitary Enterprise Service
General Fund Fund Fund Funds Fund Sewer Storm Drainage Funds Funds Total
0
h General Fund - - 6,002,286 1,769 72.230 72,231 146,231 - - 6,294.747
'al Capital Improvement Fund 130,570 - - 625,331 - - - - - 755.901
c Arterial Street Fund 789 - - 1,060,026 - - - - - 1,060,816
Non-major Governmental Funds 419,794 993,983 - 143,052 50,000 50,000 50,000 - 553,375 2,260,204
Internal Service Funds 1,504,852 248.382 - - 73,520 136,880 337,303 163,265 63,528 2,527,729
2,056,005 1.242,365 6,002,286 1.830,179 195.750 259,111 533,534 163,265 616,903 12,899.397
The City made the following transfers during the year ending December 31, 2023:
General Fund:
• $889,911 from the General Fund (Cumulative Reserve) to the Equipment Rental Capital Projects fund for
police patrol vehicle fleet expansion ($870,640) and the M&O Facility Improvements project ($19,271).
• $370,465 to the 2016 Combined Refunding fund for Golf/Cemetery debt service payments.
• $206,150 from the General Fund (Cumulative Reserve) to the Innovation and Technology fund for process
improvements to the City's HR system.
• $172,796 to the Innovation and Technology Capital Projects fund for the Broadband to Impacted
Communities project.
• $130,570 to the Capital Improvements fund for the Neighborhood Improvement project.
• $70,666 to the Equipment Rental Capital Projects fund for cost overruns on vehicles purchased in 2023
($68,000) and the M&O Facility Improvement project ($2,666).
• $98,572 to the Innovation and Technology fund for a new IT Security Engineer position, as well as equipment
for other new positions added to the City in 2023.
• $58,363 to the Equipment Rental fund for a new Mechanic position.
• $28,626 to the Municipal Parks Construction fund for Forest Villa Park improvements.
• $20,703 to the Local Street fund for the D St SE &23rd St storm improvements project.
• $8,394 from the General Fund (Cumulative Reserve) to the Facilities fund for exterior repairs to the Golf
Course.
• $789 to the Arterial Streets fund for the Auburn Way S Roundabout project.
Capital Improvement Fund:
• $704,175 to the 2020 LTGO A&B Refunding Bonds fund for debt service payments.
• $172,989 to the Local Street fund to support multiple capital projects.
• $78,630 to the Municipal Parks Construction fund to support the 12th Street Parking Lot Improvement
($49,547) and the Fairway Drainage Improvement projects ($29.083).
• $38,189 to the Local Revitalization fund for the Arts and Culture Center Alleyway.
• $183,336 to the Facilities fund for carpet and door hardware replacement at the Justice Center.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
• $65,046 to the Equipment Rentals Capital Projects fund for the M&O Facilities Improvements project.
American Rescue Plan Act Fund:
• $6,002,286 from American Rescue Plan Act Fund to the General Fund to mitigate public safety expenses.
Non-major Governmental Funds:
• $1,769 from the LID Guarantee fund to the General Fund to close the LID Guarantee fund.
• $1,060,026 from Mitigation Fund to the Arterial Streets fund to support multiple capital projects.
• $143,052 from Mitigation Fund to the Municipal Parks Construction fund for multiple capital projects.
• $625,331 from Mitigation Fund to the Capital Improvement fund support the Arts and Culture Center
Renovation.
Water Fund:
• $72,230 to the General Fund to support multiple new positions in the City.
• $50,000 to the Local Street fund for utility trench mitigation.
• $48,276 to the Equipment Rental Capital Projects fund for the M&O Facilities Improvements project.
• $15,661 to the Innovation and Technology fund to support two new Engineer positions.
• $9,582 to the Equipment Rental fund to support a new Mechanic position.
Sanitary Sewer:
• $109,966 to the Equipment Rental Capital Projects fund for CCTV Camera and Tractor ($61,560) and the
M&O Facilities Improvements project ($48,436).
• $72,231 to the General Fund to support multiple new positions in the City.
• $50,000 to the Local Street fund for utility trench mitigation.
• $17,332 to the Innovation and Technology fund to support two new Engineer positions and a new
Maintenance Worker position.
• $9,582 to the Equipment Rental fund to support a new Mechanic position.
Storm Drainage:
• $163,736 to the Equipment Rental Capital Projects fund new mowers ($115,300) and the M&O Facilities
Improvements project ($48,436).
• $150,000 from the Storm Drainage Capital Projects fund to the Equipment Rentals Capital Projects fund to
reimburse for equipment purchases.
• $74,000 to the General Fund for median maintenance.
• $72,231 to the General Fund to support multiple new positions in the City.
• $50,000 to the Local Street fund for utility trench mitigation.
• $13,985 to the Innovation and Technology fund to support two new Engineer positions and a new
Maintenance Worker position.
• $9,582 to the Equipment Rental fund to support a new Mechanic position.
Non-Major Enterprise Funds:
• $163,265 from the Cemetery Capital Projects fund to the Equipment Rental Capital Projects fund for the
purchase of a new backhoe.
Internal Service Funds:
• $553,375 from the Facilities fund to the 2020 LTGO A&B Refunding Bonds fund for debt service payments.
• $63,528 from the Innovation and Technology fund to the Facilities fund for surveillance cameras.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Loans between funds are classified as interfund receivable and payable. Interfund Loans do not affect total fund
balance.
Interfund Loans Balance Balance
Due From Due To 1/1/2023 New Loans Repayments 12/31/2023
Housing&Comm.Dev. General Fund $ 150.000 $300.000 $450,000
Total interfund loans $ 150.000 $300.000 $ - $450.000
All interfund loans are considered short-term cash loans.
"The purpose of the interfund loan to Housing c Community Development was to cover authorized expenditures while the City waited for
reimbursement of federal Community Development Block Grant monies.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
NOTE 5 - DUE FROM OTHER GOVERNMENTAL UNITS
As of December 31, 2023, the City had receivables due from other governmental units as follows:
Due from Other Governmental Units
As of December 31, 2023
General Fund:
Auburn School District 132,186
King County District Court 967,648
King County Parks- Grants 39,561
King County Real Estate Excise Taxes 550,275
King County VSHS Levy grant 66,454
Pierce County- Real Estate Excise Taxes 16,059
Port of Seattle-Grant 120,000
Seattle Police Dept-US Department of Justice JAG Grant 31,438
US Department of Justice-Bulletproof Vest Program 25,854
WA Dept. of Transportation-CTR Program 10,113
WA State Criminal Justice Training 27,784
WA State Treasurer- Sales Taxes 1,814,545
Total General Fund 3,801,917
Arterial Street Fund:
King County Wastewater Treatment Division 14.469
King County Metro 51,418
WA Dept. of Transportation-Grants 153,890
Total Arterial Street Fund 219,777
Arterial Street Preservation Fund:
WA Dept. of Transportation-Grant 6,804
WA State Treasurer- Public Transportation Tax 213,987
Total Arterial Street Preservation Fund 220,791
Housing and Community Development Fund:
HUD Treasury- HCDA Grant 495,458
Total Hotel/Motel Tax Fund 495,458
Drug Forfeiture Fund:
City of Puyallup -TNET 7,102
Pierce County Sheriff's Department-TNET 7,676
Total Drug Forfeiture Fund 14,778
2020 LTGO AS.B Refunding Bonds Fund
WA State Treasurer- LRF Sales Tax Credit 15,865
Total Hotel/Motel Tax Fund 15,865
Municipal Park Construction:
King County Parks- Grants 74,805
Total Municipal Park Construction Fund 74,805
General Government Capital Improvements:
Pierce County- Real Estate Excise Taxes 22,356
WA Dept. of Transportation-Grants 601,377
WA State Historical Society- Grant 47,241
Total General Government Capital Improvements Fund 670,974
Storm Drainage Fund:
City of Pacific 3,472
Total Storm Drainage Fund 3,472
Water Fund:
WA State Military Dept- Grant 215,978
Total Storm Drainage Fund 215,978
Solid Waste Fund:
King County-Waste reduction and recycling- Grant 7,079
King County- Hazardous Waste Management- Grant 17,176
WA State Department of Ecology-Grant 15,657
Total Solid Waste fund 39,912
Airport Fund
Federal Aviation Administration-Grant 439,248
WA Dept. of Transportation-Grant 83
Total Airport Capital fund 439,331
Facilities Fund:
City of Federal Way 12,500
Total Airport Capital fund 12,500
Information Services Fund:
City of Algona 2,265
Valley Regional Fire Authority 2,250
Total Information Services fund 4,515
Total 6,230,072
Reconciliation to government-wide statement of net position:
Total above due from other governmental units 6,230,072
Total due from other governmental units,
government-wide statement of net position 6,230,072
75
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
NOTE 6 - CAPITAL ASSETS AND RIGHT TO USE ASSETS
Capital asset activity for the year ended December 31, 2023, is as follows:
Schedule of Asset Activity
Capital Assets
Balance Decreases/ Balance
1/1/23 Increases Adjustments 12/31/23
Governmental activities:
Capital assets, not being depreciated:
Land $ 108,373,419 $ 2,541,289 $ (8,548) 110,906,160
Construction in progress 9,027,389 10,218,286 (9,218,035) 10,027,639
Total capital assets, not being depreciated 117,400,808 12,759,575 (9,226,583) 120,933,799
Capital assets, being depreciated:
Buildings 74,096,363 41,435 (486,805) 73,650,993
Improvements other than buildings 29,057,242 490,668 (346,394) 29,201,516
Machinery and equipment 35,182,156 4,562,049 (1,355,319) 38,388,887
Intangibles 564,093 - - 564,093
Infrastructure 456,404,847 7,448,940 - 463,853,787
Lease Assets 4,912,091 - (10,232) 4,901,859
Subscription Assets 4,079,690 830,620 - 4,910,310
Total capital assets being depreciated 604,296,482 13,373,712 (2,198,750) 615,471,445
Less: accumulated depreciation for:
Buildings (28,111,891) (1,481,190) 73,021 (29,520,061)
Improvements other than buildings (19,226,976) (901,983) 346,394 (19,782,565)
Machinery and equipment (25,622,328) (2,190,014) 868,600 (26,943,741)
Intangibles (59,635) (4,935) - (64,570)
Infrastructure (244,403,830) (15,914,156) - (260,317,986)
Lease Assets (276,723) (302,598) 10,232 (569,089)
Subscription Assets - (616,391) - (616,391)
Total accumulated depreciation (317,701,383) (21,411,268) 1,298,247 (337,814,403)
Total capital assets, being depreciated, net 286,595,100 (8,037,555) (900,503) 277,657,042
Governmental activities capital assets, net $ 403,995,907 $ 4,722,019 $ (10,127,086) $ 398,590,841
Business-type activities:
Capital assets, not being depreciated:
Land 13,177,445 - - 13,177,445
Water Rights 8,758,773 934,805 - 9,693,578
Construction in progress 8,775,228 5,767,899 (8,171,774) 6,371,353
Total capital assets, not being depreciated 30,711,446 6,702,704 (8,171,774) 29,242,377
Capital assets, being depreciated:
Buildings 6,085,435 - - 6,085,435
Improvements other than buildings 391,156,288 8,215,040 - 399,371,328
Machinery and equipment 2,598,714 - - 2,598,714
Total capital assets being depreciated 399,840,437 8,215,040 - 408,055,478
Less: accumulated depreciation for:
Buildings (4,604,142) (99,567) - (4,703,710)
Improvements other than buildings (158,081,887) (8,978,636) - (167,060,523)
Machinery and equipment (2,410,453) (27,658) - (2,438,111)
Total accumulated depreciation (165,096,482) (9,105,862) - (174,202,344)
Total capital assets, being depreciated, net 234,743,955 (890,821) - 233,853,133
Business-type activities capital assets, net $ 265,455,401 $ 5,811,883 $ (8,171,774) $ 263,095,510
76
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Lease Assets by Category
Balance Decreases/ Balance
1/1/23 Increases Adjustments 12/31/23
Governmental activities:
Lease assets, being amortized:
Buildings $ 4,685,125 $ - $ - $ 4,685,125
Machinery and equipment 226,966 - (10,232) 216,734
Total lease assets being amortized 4,912,091 - (10,232) 4,901,859
Less: accumulated amortization for:
Buildings (257,897) (257,897) - (515,794)
Machinery and equipment (18,826) (44,701) 10,232 (53,295)
Total accumulated amortization (276,723) (302,598) 10,232 (569,089)
Total lease assets, being amortized, net 4,635,368 (302,598) - 4,332,770
Governmental activities lease assets, net $4,635,368 $(302,598) $ - $4,332,770
77
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Subscription Assets
Balance Decreases/ Balance
1/1/23 Increases Adjustments 12/31/23
Governmental activities:
Subscription Assets:
ADManager Plus $ - $ 159,247 $ - $ 159,247
Autodesk Subscription - 145,635 - 145,635
Axon Software 3,068,114 - - 3,068,114
Flock Proprietary Software - 122,242 - 122,242
MyBuildingPermit.com (MBP) 556,626 - - 556,626
Power Policy, eFroms, Attendance, and Core HR 260,411 - - 260,411
RNI and Analytics Subscriptions 194,539 - - 194,539
SeeClickFix OMS Plus - 403,495 - 403,495
Total Software Subscription Assets 4,079,690 830,620 - 4,910,310
Subscription Accumulated Amortization:
ADManager Plus $ - $ (7,043) $ - $ (7,043)
Autodesk Subscription - (34,993) - (34,993)
Axon Software - (344,088) - (344,088)
Flock Proprietary Software - (21,406) - (21,406)
MyBuildingPermit.com (MBP) - (50,602) - (50,602)
Power Policy, eFroms, Attendance, and Core HR - (86,804) - (86,804)
RNI and Analytics Subscriptions - (34,843) - (34,843)
SeeClickFix OMS Plus - (36,613) - (36,613)
Total Software Subscription Accumulated Amortization - (616,391) - (616,391)
Total subscription assets, being amortized, net $4,079,690 $ 214,229 $ - $ 4,293,919
The beginning balances have been restated. No subscription activity is qualified to be recognized as intangible asset
under the business-type activities.
78
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Depreciation/amortization expense was charged to functions/programs of the City as follows:
Governmental activities:
General Government $ 1,173,832
Public Safety 1,284,793
Transportation 14,896,451
Health and Human Services 257,897
Culture and Recreation 1,407,327
Capital assets held by the City's internal service funds are charged to the various
functions based on their usage of the assets 2,390,967
Total depreciation/amortization expense- governmental activities $ 21,411,267
Business-type activities:
Water $ 3,837,812
Sanitary Sewer 2,517,198.05
Storm Water 2,135,172.72
Airport 580,218.02
Cemetery 35,461.57
Total depreciation expense- business-type activities $ 9,105,862
To comply with the provisions of GASB statements No. 87, the corresponding intangible lease assets and liabilities have
been identified. The following discloses additional information for the lease agreements classified under governmental
activities. During 2023, there were three separate agreements with lessors as listed in the following table.
Lessor: Total
Feenix Parkside LLC Sharp Business Systems Pitney Bowes Inc.
Asset Information:
Value of the Right to Use Asset $ 4,685,125 $ 216,734 $ - $ 4,901,859
Accumulated Amortization (515,794) (53,295) - (569,089)
Book Value $ 4,169,331 $ 163,439 $ - $ 4,332,770
Liability Information:
Lease Liability (Note 7) $ 4,244,669 $ 161,354 $ - $ 4,406,023
Payment 22,866 40,024 2,048
Non-lease Portion - 18,864 -
Interest Rate 1.4810% 2.1567% 0.2383%
Other Information:
Underlying Asset Building Equipment Equipment
Payment Frequency Monthly Semi Annual Quarterly
Lease Contract Date January 2020 May 2022 April 2018
Lease Commencement Date February 2020 May 2022 April 2018
Lease End Date February 2040 October 2027 April 2023
Payment Type Fixed Fixed Fixed
Lease Description 22,308 square feet Right to use copy Relay 2000 Inserter
of rentable area machines machine
There were no commitments under leases before the commencement of the lease terms.
79
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
For the year ended 12/31/2023,the financial statements include the adoption of GASB Statement No. 96, Subscription-
Based Information Technology Arrangements. The primary objective of this statement is to enhance the relevance
and consistency of information about governments' subscription activities. This statement establishes a single model
for subscription accounting based on the principle that subscriptions are financings of the right to use an underlying
asset. Under this Statement, an organization is required to recognize a subscription liability and an intangible right-to-
use subscription asset. For additional information, refer to the following disclosures related to each subscription
agreement.
On 08/31/2023, Auburn, WA entered a 24-month subscription for the use of Flock Proprietary Software. An initial
subscription liability was recorded in the amount of $118,242.06. As of 12/31/2023, the value of the subscription
liability is $58,242.06. Auburn, WA is required to make annual fixed payments of $66,120.00. The subscription has
an interest rate of 3.0183%. The value of the right to use asset as of 12/31/2023 is $122,242.06 with accumulated
amortization of $21,405.63.
On 01/01/2023, Auburn, WA entered a 107-month subscription for the use of Axon Software. An initial subscription
liability was recorded in the amount of $3,068,114.03. As of 12/31/2023, the value of the subscription liability is
$2,751,076.33. Auburn, WA is required to make annual fixed payments of $427,433.48. The subscription has an
interest rate of 2.7980%. The value of the right to use asset as of 12/31/2023 is $3,068,114.03 with accumulated
amortization of $344,087.55. City has one extension option, for 60 months.
On 01/01/2023, Auburn,WA entered a 36-month subscription for the use of Power Policy, eFroms, Attendance, and
Core HR. An initial subscription liability was recorded in the amount of $175,211.49. As of 12/31/2023, the value of
the subscription liability is $157,703.49. Auburn, WA is required to make annual fixed payments of $17,508.00. The
subscription has an interest rate of 2.6560%.The value of the right to use asset as of 12/31/2023 of $260,411.49 with
accumulated amortization of $86,803.83 is included in the asset activity schedules.
On 01/01/2023, Auburn, WA entered a 67-month subscription for the use of RNI and Analytics Subscriptions. An
initial subscription liability was recorded in the amount of$194,538.58.As of 12/31/2023,the value of the subscription
liability is $159,952.38. Auburn,WA is required to make annual fixed payments of $45,708.76. The subscription has
an interest rate of 2.7023%. The value of the right to use asset as of 12/31/2023 of $194,538.58 with accumulated
amortization of $34,842.73 is included in the asset activity schedules. Auburn, WA has one extension option, for 60
months. Auburn, WA had a termination period of 60 months as of the subscription commencement.
On 09/23/2023, Auburn, WA entered a 36-month subscription for the use of SeeClickFix OMS Plus. An initial
subscription liability was recorded in the amount of $403,495.20. As of 12/31/2023, the value of the subscription
liability is $271,703.40. Auburn,WA is required to make annual fixed payments of $131,791.80. The subscription has
an interest rate of 2.9010%. The value of the right to use asset as of 12/31/2023 of $403,495.20 with accumulated
amortization of $36,613.45 is included in the asset activity schedules.
80
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
On 10/22/2023, Auburn, WA entered into a 52-month subscription for the use of ADManager Plus. An initial
subscription liability was recorded in the amount of $159,247.35. As of 12/31/2023, the value of the subscription
liability is $107,484.35. Auburn, WA is required to make annual fixed payments of $51,763.00. The subscription has
an interest rate of 3.5290%. The value of the right to use asset as of 12/31/2023 of $159,247.35 with accumulated
amortization of $7,043.63 is included in the asset activity schedules. The City has three extension option, each for 12
months.
On 01/15/2023, Auburn, WA entered a 48-month subscription for the use of Autodesk Subscription. An initial
subscription liability was recorded in the amount of $145,635.29. As of 12/31/2023, the value of the subscription
liability is $107,771.79. Auburn, WA is required to make annual fixed payments of $37,863.50. The subscription has
an interest rate of 2.6760%. The value of the right to use asset as of 12/31/2023 of $145,635.29 with accumulated
amortization of $34,992.92 is included in the asset activity schedules. Auburn,WA has three extension options, each
for 12 months.
On 01/01/2023,Auburn,WA entered a 132-month subscription for the use of MyBuildingPermit.com (MBP). An initial
subscription liability was recorded in the amount of $556,625.76. As of 12/31/2023, the value of the subscription
liability is $513,118.24. Auburn,WA is required to make quarterly fixed payments of$14,857.00.The subscription has
an interest rate of 2.9460%. The value of the right to use asset as of 12/31/2023 of $556,625.76 with accumulated
amortization of $50,602.34 is included in the asset activity schedules. The City has included 10 extension options,
each for 12 months, in the subscription period.
NOTE 7 - LONG-TERM LIABILITIES
General Obligation Bonds are direct obligations of the City for which its full faith and credit are pledged. Debt service
for voter-approved issues, of which the City has none, would be funded by special property tax levies. Debt service for
City Council authorized bonds, also called councilmanic bonds, is funded from regular property taxes or general
revenues, and is generally paid from debt service funds but can be paid from other designated funds.
General Obligation Bonds outstanding at year-end are as follows:
• 2016 Limited Tax General Obligation Refunding Bonds were issued for the primary purposes of (a) refunding on a
current basis the 2005 Limited Tax General Obligation Refunding Bonds and (b) refunding on an advance basis the
2006A Limited Tax General Obligation Bonds. As a result of these transactions, the 2005 and 2006A bonds are
considered to be defeased and the liability for those bonds has been removed from the City's financial statements.
The remaining balance of outstanding defeased debt as of December 31, 2023, is $728,476.
• 2020 Limited Tax General Obligation Series A Refunding Bonds were issued in the principal amount of$15,010,000
on October 22, 2020, for the purpose of refunding on a current basis the 2010 Limited Tax General Obligation
Series B Bonds of which $17,560,000 was outstanding. The bonds were issued at a premium of $3,124,761 and
bear a fixed interest rate of 4-5% through maturity. The net proceeds of $17,973,858 (after payment of $160,903
in issuance costs) were deposited into an irrevocable trust with an escrow agent to pay the full outstanding principal
and interest on the 2010 B Bonds on the October 23, 2020, redemption date. As a result of this transaction, the
2010 B bonds are considered to be defeased and the liability for those bonds have been removed from the City's
financial statements. The refunding transaction reduced the City's total debt service payments by $3,898,891
through the final maturity of December 1, 2039, and resulted in an economic gain (the difference between the
present values of the debt service payments on the old and new debt) of $3,391,515.
• 2020 Limited Tax General Obligation Series B Refunding Bonds were issued in the principal amount of $4,470,000
on October 22, 2020, for the purpose of refunding on a current basis the 2010 Limited Tax General Obligation
Series D Bonds of which $5,160,000 was outstanding. The bonds were issued at a premium of $864,988 and bear
81
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
a fixed interest rate of 2-5% through maturity. The net proceeds of $5,287,071 (after payment of $47,917 in
issuance costs) were deposited into an irrevocable trust with an escrow agent to pay the full outstanding principal
and interest on the 2010 D Bonds on the October 23, 2020, redemption date. As a result of this transaction, the
2010 D bonds are considered to be defeased and the liability for those bonds have been removed from the City's
financial statements. The refunding transaction reduced the City's total debt service payments by $1,003,626
through the final maturity of December 1, 2034, and resulted in an economic gain (the difference between the
present values of the debt service payments on the old and new debt) of $903,068.
Revenue Bonds are payable from water, sewer and storm drainage utility revenues generated by those enterprise funds.
• 2013 Utility System Revenue Bonds were issued in par amount of $11,415,000 to finance water and storm utility
system improvements. The bonds are being repaid by the revenues generated by the Water and Storm Drainage
funds.
• 2020 Utility System Revenue Bonds were issued in the par amount of $12,030,000 to finance water utility system
improvements. The bonds are being repaid by the revenues generated by the Water fund.
• 2020 Utility System Revenue Refunding Bonds were issued in the principal amount of $11,835,000 for the purpose
of advance refunding the 2010 Utility System Revenue Bonds of which $15,675,000 was outstanding. The bonds
were issued at a premium of $2,997,541 and bear a fixed interest rate of 5% through maturity. The net proceeds
of $14,933,747 (after payment of $129,168 in issuance costs and the City's reserve account contribution of
$1,175,010) were deposited into an irrevocable trust with an escrow agent to pay the full outstanding principal and
interest on the December 1, 2020, redemption date. As a result of this transaction, the 2010 Revenue Bonds are
considered to be defeased and the liability for those bonds have been removed from the City's financial statements.
The refunding transaction reduced the City's total debt service payments by $2,728,553 through the final maturity
of December 1, 2030, and resulted in an economic gain (the difference between the present values of the debt
service payments on the old and new debt) of $2,552,622.
State of Washington Public Works Trust Fund and Drinking Water State Revolving Fund Loans are a direct responsibility
of the City. Auburn currently has seven outstanding loans with a remaining total balance of $7,304,542. Five of the
loans are for water and sewer construction projects. The loans are being repaid from water and sewer fund revenues
over a 20-year period that begins upon each project completion (PWTF 2004, PWTF 2006, PWTF 2013, DWSRF 2016,
&DWSRF 2020).The other two loans are for arterial street improvements and are being repaid from arterial street fund
revenues over a 20-year period that began in 2009 upon project completion (PWTF 2008) and over a 29-year period
that began in 2013 upon project completion (PWTF 2012).
Compensated Absences are paid by those funds that have employees. These are mostly payable by the General fund
and enterprise funds.
Pension and OPEB liabilities are generally liquidated by funds that have employees.
Lease liabilities are recognized in accordance with GASB statement No. 87. This Statement requires lessees to recognize
and measure transactions as leases, including recognition of a lease liability at the present value of future lease payments
expected to be made during the lease term, which represent the obligations of the lessee under the lease contract. As of
December 31, 2023, the lease liabilities were limited only to governmental activities.
Subscription liabilities are measured and recognized according to the requirements of GASB statement No. 96.
Subscription liability equals to the present value of future subscription payments for the subscription period. As of
December 2023, theses liabilities are limited to the governmental funds.
82
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
The following schedules summarize the long-term debt transactions of the City for the year ended December 31, 2023.
The first table summarizes all debt transactions for Auburn,while the second provides information on debt requirements
to maturity. Additional schedules reflect the reconciliation of debt by fund type, and detailed information on all long-
term debt.
CHANGES IN LONG-TERM LIABILITES SUMMARY
Long-term liabilities Long-term liabilities
payable 12/31/22 Additions Reductions payable 12/31/23
Governmental Activities
General Obligation $ 17,931,209 $ - $ (1,122,733) $ 16,808,476
Due To Other Governments(Backed by Full Faith 15,888,965 - (695,306) 15,193,659
and Credit of the City)
Lease Liability 4,668,740 - (262,717) 4,406,023
Subscription Liability 3,994,490 826,620 (694,059) 4,127,051
Public Works Trust Fund Loans 2,705,166 - (197,375) 2,507,791
Employee Leave Benefit 4,038,134 2,692,845 (2,490,443) 4,240,536
Other Post Employment Benefits 10,956,157 402,400 (2,051,214) 9,307,343
Net Pension Liability 2,881,384 - (691,236) 2,190,148
Firemen's Pension Liability 2,498,278 641,104 (223,425) 2,915,957
Premium 3,364,838 - (219,504) 3,145,334
Total Governmental Activities 68,927,361 4,562,969 (8,648,012) 64,842,317
Business-Type Activities
Revenue Bonds 27,570,000 - (2,030,000) 25,540,000
Employee Leave Benefits 842,624 608,046 (493,152) 957,517
Net Pension Liability 2,033,135 - (224,621.00) 1,808,514
Public Works Trust Fund&Drinking Water Loans 3,045,777 2,418,199 (667,224.76) 4,796,751
Premium 5,152,115 - (468,969) 4,683,146
Total Business-Type Activities 38,643,651 3,026,245 (3,883,967) 37,785,929
Total All Funds $ 107,571,012 $ 7,589,213 $ (12,531,979) $ 102,628,246
83
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
As of December 31, 2023, the principal and interest requirements to maturity are as follows:
DEBT SERVICE REQUIREMENT TO MATURITY
Governmental Activities
General Obligation Bonds(1) Lease and SBITA Liability Loans
Year Principal Interest Principal Interest Principal Interest
2024 $ 1,890,575 $ 1,353,809 $ 948,709 $ 177,199 $ 197,376 $ 7,274
2025 1,969,116 1,278,685 977,516 158,809 197,376 6,580
2026 1,674,644 1,192,532 763,847 133,278 197,376 5,885
2027 1,754,825 1,108,800 744,222 115,041 197,376 5,191
2028 1,850,006 1,021,060 680,544 97,576 197,376 4,497
2029-2033 10,581,842 3,712,784 2,677,826 262,473 584,966 16,087
2034-2038 11,236,127 1,441,984 1,398,845 78,587 584,966 8,774
2039-2040 1,045,000 41,800 341,564 3,170 350,980 1,755
Total $ 32,002,135 $ 11,151,454 $ 8,533,074 $ 1,026,133 $ 2,507,791 $ 56,043
(1)Includes Due to Other Governments.
Business Type Activities
Revenue Bonds Loans
Year Principal Interest Principal Interest
2024 $ 2,125,000 $ 1,160,400 $ 667,226 $ 50,033
2025 2,225,000 1,059,900 559,382 44,902
2026 2,325,000 954,650 559,382 40,301
2027 2,435,000 844,600 333,118 35,720
2028 2,550,000 729,300 333,118 32,718
2029-2033 9,005,000 1,953,200 1,477,051 118,570
2034-2038 3,980,000 669,000 722,897 50,603
2039-2040 895,000 35,800 144,579 2,487
Total $ 25,540,000 $ 7,406,850 $ 4,796,751 $ 375,334
84
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
CHANGES IN LONG-TERM LIABILITIES
Interest Matunty Original Principal Balance Balance Due Within
Issue Name Rates Date Amounts�1 Installments 12/31/22 Additions Reductions 12/31/23 One Year
GOVERNMENTAL DEBT
General Obligation Bonds:
LTGO Refunding 2016 164-164% 12/01/2025 $ 3,166,930 $71,470-$366,159 $ 1,081,209 $ - $ (352,733) $ 728,476 $ 362,317
LTGO Refunding 2020A(LTGO 2010B) 400-500% 12/01/2039 15,010,000 $480,000-$1,045,000 13,160,000 - (530,000) 12,630,000 555,000
LTGO Refunding 2020B(LTGO 2010D) 400-500% 12/01/2034 4,470,000 $71,470-$366,159 3,690,000 - (240,000) 3,450,000 250,000
Total General Obligation Bonds 22,646,930 17,931,209 - (1,122,733) 16,808,476 1,167,317
Subscription Liability m
ADManager Plus 3.529% 02/21/2028 159,247 - 159,247 (51,763) 107,484 -
Autodesk Subscnption 2.676% 01/14/2027 145,635 - 145,635 (37,865) 107,771 34,980
Axon Software 2.798% 11/30/2031 3,068,114 3,068,114 - (317,037.7) 2,751,076 311,601
Flock Propnetary Software 3.018% 07/31/2025 118,242 - 118,242 (60,000) 58,242 58,242
MyBuildingPermit.com(MBP) 2.946% 12/31/2033 556,626 556,626 - (43,508) 513,118 44,803
Power Policy,eFroms,Attendance,and Core HR 2.656% 12/31/2025 175,211 175,211 - (17,508) 157,703 66,235
RNI and Analytics Subscriptions 2.702% 07/31/2028 194,539 194,539 - (34,586) 159,952 30,308
SeeClickFsx OMS Plus 2 901% 09/22/2026 403,495 - 403,495 (131,792) 271,703 130,499
Total Subscription Liability 4,821,110 3,994,490 826,620 (694,059) 4,127,051 676,668
Leases.
Feenix Parkside LLC 1.481% 02/29/2040 4,685,125 4,467,117 - (222,448) 4,244,669 232,992
Sharp Business Systems 2.157% 10/31/2027 216,609 199,575 - (38,221) 161,354 39,050
Pitney Bowes Inc. 0.238% 04/01/2023 10,232 2,048 - (2,048) - -
Total Lease Liability 4,911,966 4,668,740 - (262,717) 4,406,023 272,041
Employee Leave Benefits.
Compensated absences 4,038,134 2,692,845 (2,490,443) 4,240,536 3,167,538
Other Post Employment Benefits:
LEOFF 1 10,956,157 402,400 (2,051,214) 9,307,343 473,000
Pensions:
Net Pension Liability 2,881,384 (691,236) 2,190,148 2,190,148
Firemen's Pension Liability 2,498,278 641,104 (223,425) 2,915,957 -
Public Works Trust Fund Loans:
PWIT2008 0 50% 07/01/2028 1,527,273 $80,382 482,296 - (80,382) 401,914 80,383
PWFF 2012 0.50% 06/01/2041 3,284,857 $116,993 2,222,870 - (116,993) 2,105,877 116,993
Total Public Works Trust Fund Loans 4,812,130 2,705,166 - (197,375) 2,507,791 197,376
Premium Related to Debt 3,364,838 - (219,504) 3,145,333 -
Total Governmental $ 32,280,170 $ 53,038,396 $ 4,562,969 $ (7,952,706) $ 49,648,658 $ 8,144,088
BUSINESS-TYPE DEBT
Revenue Bonds:
Utility sys refunding bonds 2020(2010 Bonds) 5% 12/01/2030 11,835,000 $950,000-$1,450,000 9,890,000 - (1,040,000) 8,850,000 1,095,000
Utility sys bonds 2020 s�1 400-500% 12/01/2039 12,030,000 $175,000-$895,000 11,045,000 - (435,000) 10,610,000 455,000
Utility sys bonds 2013 121 0 384 00% 12/01/2032 11,415,000 $335,000-$785,000 6,635,000 - (555,000) 6,080,000 575,000
Total Revenue Bonds 35,280,000 27,570,000 - (2,030,000) 25,540,000 2,125,000
Employee Leave Benefits
Compensated absences 842,624 608,046 (493,152) 957,517 715,232
Net Pension Liability 2,033,135 (224,621) 1,808,514 1,808,514
Public Works Trust Fund&Drinking Water Loans:
PWFF 2004 0.50% 7/1/2024 2,049,036 $107,844 215,688 (107,844) $ 107,844 107,844
PWFF 2006 0.50% 7/1/2026 3,325,000 $180,418 721,672 (180,418) $ 541,254 180,418
PWIT 2013 200% 6/1/2032 3,325,000 $188,538 1,885,385 (188,538) $ 1,696,845 188,538
DWSRF 20160i 1 50% 10/1/2026 248,066 $30,262 121,049 62,334 (45,845) $ 137,538 45,846
DWSRF 2020 1 75% 10/1/2039 3,030,000 $5,999 101,984 2,355,865 (144,579) $ 2,313,270 144,579
Total Public Works Trust Fund&Drinking Water Loans 12,618,352 3,045,777 2,418,199.07 (667,225) 4,796,751 667,226
Premium Related to Debt 5,152,115 - (468,969) 4,683,146 -
Total Proprietary $ 47,898,352 $ 38,643,651 $ 3,026,245 $ (3,883,967) $ 37,785,929 $ 5,315,972
Total All Funds $ 80,178,522 $ 91,682,047 $ 7,589,213 $ (11,836,673) $ 87,434,587 $ 13,460,060
li1The beginning balances have been restated to comply with GASB Statement No 96.
(2)Subject to federal arbitrage compliance rules.
(3)The original authorized loan amount was reduced from$1,353,400 in concert with a reduction in project scope(limited to design costs only).
85
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Due to Other Governments
• SCORE Public Development Authority issued General Obligation bonds in 2009 to acquire, construct, improve, and
equip a consolidated correctional facility located in Des Moines,Washington. These bonds were subsequently refunded
in December 2019 and will mature in 2038. The city is contracted to pay 34.94% of the debt service. This debt is paid
from the General fund.
CHANGES IN LONG-TERM LIABILITIES DUE TO OTHER GOVERNMENTS
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount Installments 12/31/22 Additions Reductions 12/31/23 One Year
GOVERNMENTAL DEBT:
General Obligation Bonds:
SCORE Refunding Bonds 2019 3.00.5.00% 12/1/2038 17,838.617 $637,655-$1,325.973 15.888.965 - (695.306) 15.193.659 723,258
Total General Obligation Bonds
Due Other Governments $ 17,838,617 $ 15,888,965 $ - $ (695,306) $ 15,193,659 $ 723,258
LONG-TERM LIABILITIES RECONCILIATION
Enterprise Governmental
Funds Funds 12/31/23
Liabilities payable from restricted assets:
Revenue bonds $ 2,176/114 $ - $ 2,176,444
Long-term bonds payable:
General obligation bonds - 16,808,476 16,808,476
Revenue bonds 23,363,556 - 23,363,556
Lease Liability 4,406,023 4,406,023
Subscription Liability - 4,127,051 4,127,051
Public Works Trust Fund loans 4,796,751 2,507,791 7,304,542
Due to Other Governments - 15,193,659 15,193,659
Employee leave benefits 957,517 4,240,536 5,198,053
Other Post Employment Benefits - 9,307,343 9,307,343
Net Pension Liability 1,808,514 2,190,148 3,998,662
Firemen's Pension Liability - 2,915,957 2,915,957
Premium 4,683,146 3,145,333 7,828,479
Total long-term debt $ 37,785,929 $ 64,842,317 $ 102,628,246
Revenue Bond Debt Service Coverage
The required debt service coverage for the 2013 utility revenue, 2020 utility revenue, and 2020 utility revenue refunding
bonds is 1.25. Debt service coverage for 2023 was 4.65. The ratio indicates the direction and degree to which the
revenue stream exists to meet the current debt burden. The ratio is calculated by dividing the net revenue available by
debt service requirements.
The restricted rate stabilization fund for the utility revenue bonds was established to minimize the effect on rates of
revenue fluctuations between years. By transferring cash into this stabilization fund, adjusted net revenue available for
debt service, as defined, would be decreased by the amount of the transfer. Conversely, transfers out of the account
would increase adjusted net revenue available for debt service.
86
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Estimated Arbitrage Rebate
The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt of over $5 million to make payments to the
United States Treasury of investment interest received at yields that exceed the issuer's tax-exempt borrowing
rates. Payments of arbitrage rebate amounts due under these regulations must be made to the U.S. Treasury every five
years. The City's estimated arbitrage rebate as of December 31, 2023, is $0 for its tax-exempt bond issues.
NOTE 8 - LEASES (LESSORS)
Lease receivables are recognized in accordance with GASB statement 87. The statement requires the lessor to recognize
a lease receivable at the present value of lease payments anticipated to be received during the lease term. The city as of
December 31, 2023, has lease receivables for both governmental and business type activities.
CHANGES IN DEFERRED INFLOW OF RESOURCES
BUSINESS-TYPE ACTIVITIES: Balance as of Balance as of
January 1,2023 Additions Reductions December 31,2023
Deferred Inflow of Resources
Buildings
Airport East Room $ - $ 131,713 $ 10,783 $ 120,930
S50 Hangars LLC-Airport 176,029 - 8,888 167,141
SpanaFlight LLC 188,943 - 188,943 -
Total Building Deferred Inflow of Resources 364,972 131,713 208,614 288,071
Land
Auburn Condo Hangars Assoc(ACHA) 1,866,457 - 65,637 1,800,820
Auburn Flyers Condo I-Airport 241,280 - 8,184 233,096
Auburn Flyers Condo II-Airport 513,294 - 16,525 496,768
Auburn Flyers Condo III-Airport 573,304 - 17,559 555,744
Auburn Hangars Owners Assoc(AHOA) 1,906,821 - 66,433 1,840,388
Cascade Helicopter Services-Airport 1,581,672 - 34,826 1,546,846
Jim Jacobsen-Airport 216,295 - 7,351 208,944
Normandy Aircraft 2,592 - 2,592 -
Total Land Deferred Inflow of Resources 6,901,715 - 219,107 6,682,606
Total Deferred Inflow of Resources $ 7,266,687 $ 131,713 $ 427,721 $ 6,970,677
GOVERNMENTAL ACTIVITIES: Balance as of Balance as of
January 1,2023 Additions Reductions December 31,2023
Deferred Inflow of Resources
Buildings
Auburn Food Bank $ 627,878 $ - $ 36,754 $ 591,124
Auburn Professional Plaza-Parking Stalls 823,933 - 19,579 804,354
We Care Daily Clinics 150,797 - 25,851 124,946
Total Building Deferred Inflow of Resources 1,602,608 - 82,184 1,520,424
Infrastructure
Seattle SMSA Lmtd Partnership-Verizon 377,317 - 17,348 359,969
Total Infrastructure Deferred Inflow of Resources 377,317 - 17,348 359,969
Land
SBA 2012 TC Assests LLC-Sprint 182,189 1,658,973 65,050 1,776,112
Total Land Deferred Inflow of Resources 182,189 1,658,973 65,050 1,776,112
Total Deferred Inflow of Resources $ 2,162,114 $ 1,658,973 $ 164,582 $ 3,656,505
87
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
CHANGES IN LEASE RECEIVABLES
BUSINESS-TYPE ACTIVITIES: Balance as of Balance as of
January 1,2023 Additions Reductions December 31,2023
Lease Receivable
Buildings
Airport East Room $ - $ 131,713 $ 8,981 $ 122,732
S50 Hangars LLC-Airport 175,325 - 5,841 169,484
SpanaFlight LLC 189,917 - 189,917 -
Total Building Lease Receivable 365,242 131,713 204,739 292,216
Land
Auburn Condo Hangars Assoc(ACHA) 1,879,252 - 51,587 1,827,666
Auburn Flyers Condo I-Airport 242,866 - 6,345 236,521
Auburn Flyers Condo II-Airport 517,208 - 12,677 504,531
Auburn Flyers Condo III-Airport 577,021 - 13,209 563,812
Auburn Hangars Owners Assoc(AHOA) 1,920,483 - 52,045 1,868,439
Cascade Helicopter Services-Airport 1,591,400 - 23,144 1,568,256
Jim Jacobsen-Airport 216,796 - 6,800 209,995
Normandy Aircraft 2,595 - 2,595 -
Total Land Lease Receivable 6,947,621 - 168,402 6,779,220
Total Lease Receivable $ 7,312,863 $ 131,713 $ 373,141 $ 7,071,436
GOVERNMENTAL ACTIVITIES: Balance as of Balance as of
January 1,2023 Additions Reductions December 31,2023
Lease Receivable
Buildings
Auburn Food Bank $ 631,717 $ - $ 32,742 $ 598,975
Auburn Professional Plaza-Parking Stalls 829,846 - 13,460 816,387
We Care Daily Clinics 156,659 - 24,578 132,081
Total Building Lease Receivable 1,618,222 - 70,780 1,547,443
Infrastructure
Seattle SMSA Lmtd Partnership-Verizon 383,795 - 9,891 373,903
Total Infrastructure Lease Receivable 383,795 - 9,891 373,903
Land
SBA 2012 TC Assests LLC-Sprint 183,989 1,658,973 29,715 1,813,247
Total Land Lease Receivable 183,989 1,658,973 29,715 1,813,247
Total Lease Receivable $ 2,186,006 $ 1,658,973 $ 110,386 $ 3,734,593
The following provides the total amount of inflows including lease revenue and interest revenue for year 2023:
Lease Revenue Interest Revenue Total
Governmental Activities $ 164,581 $ 66,616 $ 231,197
Business-type Activities 240,210 135,705 375,915
Total $ 404,791 $ 202,321 $ 607,112
88
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
As of December 31, 2023, future lease receivable principal and interest payments are as follows:
Governmental Activities Business-type Activities
Year Principal Interest Total Principal Interest Total
2024 $ 74,706 $ 99,351 $ 174,057 $ 185,436 $ 124,737 $ 310,173
2025 81,216 98,448 179,664 189,010 121,282 310,292
2026 87,204 97,361 184,565 192,535 117,757 310,292
2027 93,703 96,078 189,781 196,133 114,159 310,292
2028 96,049 94,581 190,630 199,804 110,488 310,292
2029-2033 487,235 111 1,999 932,234 1,056,799 494,663 1,551,462
2034-2038 767,437 368,350 1,135,787 1,084,387 396,152 1,480,539
2039-2043 1,014,280 236,554 1,250,834 1,172,139 293,294 1,465,433
2044-2048 642,179 65,533 707,712 1,226,433 189,366 1,415,799
2049-2053 109,876 29,536 139,412 883,529 89,128 972,657
2054-2058 119,922 19,490 139,412 244,303 48,498 292,801
2059-2063 130,886 8,526 139,412 225,063 29,059 254,122
2064-2068 29,900 306 30,206 215,863 8,612 224,475
2068-2072 -
Total $ 3,734,593 $ 1,659,113 $ 5,393,706 $ 7,071,434 $ 2,137,195 $ 9,208,629
89
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
The following provides the description, terms, and additional information for the lease agreements in which City of
Auburn is the lessor:
Page 1 of 2
Commencement Purchase
Lessee Lease Description Fund Contract Date Date Lease End Date Option
Auburn Condo Hangars Assoc Land situated at 2509"E"Street N E, Airport June-2001 June-2001 June-2051 No
Auburn,WA
NW Hangars LLC Auburn Flyers Condo I:12,273 square Airport June-2002 June-2002 June-2052 No
feet of land
NW Hangars LLC Auburn Flyers Condo II:24,948 square Airport January-2004 January-2004 January-2054 No
feet of land
NW Hangars LLC Auburn Flyers Condo III:26,765 square Airport August-2005 August-2005 August-2055 No
feet of land
Auburn Hangars Owners Assoc(AHOA) 98,326 square feet Airport September-2001 September-2001 September-2051 No
Cascade Helicopter Services Certain premises,facilities and rights on Airport February-1978 June-1978 May-2068 No
Auburn Airport
Jim Jacobsen 10,296 square feet of land located at Airport June-2002 June-2002 June-2052 No
Auburn Airport
Normandy Aircraft 782 square feet in the Airport Airport December-2019 January-2020 January-2023 No
Administration building
550 Hangars LLC Commercial office and shop space Airport October-2022 October-2022 October-2042 No
SpanaFlight LLC Ill Certain space in the Airport Airport January-2021 January-2021 January2033 0) No
Administration building
SpanaFlight LLC 672 square feet in Airport east room Airport January-2023 February-2023 December-2033 No
Sprint Spectrum L.P.(2) 900 square feet of land and 720 square General April-2006 June-2006 5/31/2046(2) No
feet of building exterior space
Auburn Food Bank 6,647 square feet of rentable area General October-2020 November-2020 January-2040 No
Auburn Professional Plaza 125 Parking Stalls General December-2008 February-2010 January-2065 No
We Care Daily Clinics 1,960 square feet of rentable area located General October-2021 November-2021 October-2028 No
on North Auburn Way and exclusive use
of two parking stalls
Seattle SMSA Lmtd Partnership-Verizon Athena facility and tower space in Fulmer Municipal Parks September-2014 October-2014 September-2044 No
Park Construction
1)Lease was terminated in January 2023.$1,064 loss on termination was recognized.
2)An amendment was signed in July,2023 providing the lessee with four additional successive terms of five years(each a"Renewal Term").As a result,the end date was extended from May
2026 to May 2046.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Page 2 of 2
Payment Payment
Lessee Payment Type Index Amount Frequency
Auburn Condo Hangars Assoc Fixed N/A $ 7.449 Monthly
NW Hangars LLC Variable CPI 979 Monthly
NW Hangars LLC Variable CPI 1.873 Monthly
NW Hangars LLC Variable CPI 2,024 Monthly
Auburn Hangars Owners Assoc Variable CPI 7,405 Monthly
(AHOA)
Cascade Helicopter Services Variable CPI 4,245 Monthly
Jim Jacobsen Variable CPI 653 Monthly
Normandy Aircraft Variable CPI 2,615 Monthly
S50 Hangars LLC Variable CPI 1,089 Monthly
SpanaFlight LLC Variable CPI 1,543 Monthly
SpanaFlight LLC Variable Maximum 1,126 Monthly
of CPI or
5 percent
Sprint Spectrum L.P. Variable CPI 4,175 Monthly
Auburn Food Bank Fixed N/A 3,490 Monthly
Auburn Professional Plaza Fixed N/A 2,324 Monthly
We Care Daily Clinics Fixed N/A 2,250 Monthly
Seattle SMSA Lmtd Partnership- Fixed N/A 15,761 Annual
Verizon
91
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
NOTE 9 - PENSION PLANS
The following table represents the aggregate pension amounts for all plans for the year 2023:
Aggregate Pension Amounts - All State Administered Plans
Pension liabilities $ (3,998,662)
Pension assets $ 20,491,786
Deferred outflows of resources $ 14,444,029
Deferred inflows of resources $ (8,066,018)
Pension expense/expenditures $ (1,430,241)
State Sponsored Pension Plans
Substantially all City full-time and qualifying part-time employees participate in one of the following statewide retirement
systems administered by the Washington State Department of Retirement Systems, under cost-sharing, multiple-employer
public employee defined benefit and defined contribution retirement plans. The state Legislature establishes, and
amends, laws pertaining to the creation and administration of all public retirement systems.
The Department of Retirement Systems (DRS), a department within the primary government of the State of Washington,
issues a publicly available Annual Comprehensive Financial Report (ACFR)that includes financial statements and required
supplementary information for each plan.
The DRS ACFR may be downloaded from the DRS website at www.drs.wa. ov.
Public Employees' Retirement System (PERS)
PERS members include elected officials; state employees; employees of the legislature; employees of local governments;
and higher education employees not participating in higher education retirement programs.
PERS is composed of and reported as three separate plans for accounting purposes: Plan 1, Plan 2/3 and Plan 3. Plan 1
accounts for the defined benefits of Plan 1 members. Plan 2/3 accounts for the defined benefits of Plan 2 members and
the defined benefit portion of benefits for Plan 3 members. Plan 3 accounts for the defined contribution portion of
benefits for Plan 3 members. Although employees can be a member of only Plan 2 or Plan 3, the defined benefits of
Plan 2 and Plan 3 are accounted for in the same pension trust fund. All assets of Plan 2/3 may legally be used to pay the
defined benefits of any Plan 2 or Plan 3 members or beneficiaries.
PERS Plan 1 provides retirement, disability, and death benefits. Retirement benefits are determined as two percent of
the member's average final compensation (AFC) times the member's years of service. The AFC is the average of the
member's 24 highest consecutive service months. Members are eligible for retirement from active status at any age with
at least 30 years of service, at age 55 with at least 25 years of service, or at age 60 with at least five years of service.
PERS Plan 1 retirement benefits are actuarially reduced if a survivor benefit is chosen. Members retiring from active status
prior to the age of 65 may also receive actuarially reduced benefits. Other benefits include an optional cost-of-living
(COLA). PERS 1 members were vested after the completion of five years of eligible service. The plan was closed to new
entrants on September 30, 1977.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Contributions
The PERS Plan 1 member contribution rate is established by State statute at 6 percent. The employer contribution rate
is developed by the Office of the State Actuary, adopted by the Pension Funding Council and is subject to change by the
legislature. The PERS Plan 1 required contribution rates (expressed as a percentage of covered payroll) for 2023 were as
follows:
PERS Plan 1
Actual Contribution Rates: Employer Employee*
January -June 2023:
PERS Plan 1 6.36% 6.00%
PERS Plan 1 UAAL 3.85%
Administrative Fee 0.18%
Total 10.39% 6.00%
July—August 2023:
PERS Plan 1 6.36% 6.00%
PERS Plan 1 UAAL 2.85%
Administrative Fee 0.18%
Total 9.39% 6.00%
September—December 2023:
PERS Plan 1 6.36% 6.00%
PERS Plan 1 UAAL 2.97%
Administrative Fee 0.20%
Total 9.53% 6.00%
For employees participating in JBM, the contribution rate was 12.26%
PERS Plan 2/3 provides retirement, disability, and death benefits. Retirement benefits are determined as two percent of
the member's AFC times the member's years of service for Plan 2 and one percent of AFC for Plan 3. The AFC is the
average of the member's 60 highest-paid consecutive service months. Members are eligible for retirement with full
benefit at 65 with at least five years of service credit. Retirement before age 65 is considered an early retirement. PERS
Plan 2/3 members who have at least 20 years of service credit and are 55 years of age or older, are eligible for early
retirement with benefit that is reduced by a factor that varies according to age for each year before age 65. PERS Plan
2/3 retirement benefits are actuarially reduced if a survivor benefit is chosen. Other PERS Plan 2/3 benefits include a
COLA based on CPI, capped at 3% annually. PERS 2 members are vested after completing five years of eligible service.
Plan 3 members are vested in the defined benefit portion of their plan after ten years of service; or after five years of
service if 12 months of that service are earned after age 44.
PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and investment earnings on
those contributions. Members are eligible to withdraw their defined contributions upon separation. Members have
multiple withdrawal options, including purchase of an annuity. PERS Plan 3 members are immediately vested in the
defined contribution portion of their plan.
Contributions
The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the State Actuary to fully
fund Plan 2 and the defined benefit portion of Plan 3. The rates are adopted by the Pension Funding Council and are
subject to change by the Legislature. The employer rate includes a component addressing the PERS Plan 1 Unfunded
Actuarial Accrued Liability (UAAL).
As established by Chapter 41.34 RCW, Plan 3 defined contribution rates are set at a minimum of 5% and a maximum
of 15%. PERS Plan 3 members choose their contribution rate from six options when joining membership and can change
rates only when changing employers. Employers do not contribute to the defined contribution benefits.
93
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
The PERS Plan 2/3 defined benefit required contribution rates (expressed as a percentage of covered payroll) for 2023
were as follows:
PERS Plan 2/3
Actual Contribution Rates: Employer 2/3 Employee 2*
January -June 2023:
PERS Plan 2/3 6.36% 6.36%
PERS Plan 1 UAAL 3.85%
Administrative Fee 0.18%
Employee PERS Plan 3 Varies
Total 10.39% 6.36%
July- August 2023:
PERS Plan 2/3 6.36% 6.36%
PERS Plan 1 UAAL 2.85%
Administrative Fee 0.18%
Employee PERS Plan 3 Varies
Total 9.39% 6.36%
September—December 2023:
PERS Plan 2/3 6.36% 6.36%
PERS Plan 1 UAAL 2.97%
Administrative Fee .20%
Employee PERS Plan 3 Varies
Total 9.53% 6.36%
For employees participating in JBM, the contribution rate was 15.90%.
'' For employees participating in JBM, the minimum contribution rate was 7.50%.
The City's actual PERS plan contributions were $1,129,900 to PERS Plan 1 and $2,102,089 to PERS Plan 2/3 for the year
ended December 31, 2023.
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF)
LEOFF was established in 1970, and its retirement benefit provisions are contained in Chapter 41.26 RCW. LEOFF
membership includes all of the state's full-time, fully compensated, local law enforcement commissioned officers, fire
fighters and, as of July 24, 2005, emergency medical technicians.
LEOFF Plan 1 provides retirement, disability, and death benefits. Retirement benefits are determined per year of service
calculated as a percent of final average salary (FAS) as follows:
• 20+years of service—2.0% of FAS
• 10-19 years of service— 1.5% of FAS
• 5-9 years of service— 1% of FAS
The FAS is the basic monthly salary received at the time of retirement, provided a member has held the same position
or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the highest-paid consecutive 24
months within the last ten years of service. Members are eligible for retirement with five years of service at the age of
50. Other benefits include a COLA. LEOFF 1 members were vested after the completion of five years of eligible service.
The plan was closed to new entrants on September 30, 1977.
Contributions
Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent, as long as the plan remains
fully funded. The LEOFF Plan I had no required employer or employee contributions for fiscal year 2023. Employers
paid only the administrative expense of 0.20 of covered payroll.
94
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
LEOFF Plan 2 provides retirement, disability, and death benefits. Retirement benefits are determined as two percent of
the final average salary (FAS) per year of service (the FAS is based on the highest-paid consecutive 60 months). Members
are eligible for retirement with a full benefit at 53 with at least five years of service credit. Members who retire prior to
the age of 53 receive reduced benefits. If the member has at least 20 years of service and is age 50 - 52, the reduction
is three percent for each year prior to age 53. Otherwise, the benefits are actuarially reduced for each year prior to age
53. LEOFF 2 retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other benefits
include COLA (based on the CPI), capped at 3% annually. LEOFF 2 members are vested after completion of five years
of eligible service.
Contributions
The LEOFF Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to fully
fund Plan 2. The rates are adopted by the LEOFF Plan 2 Retirement Board and are subject to change by the Legislature.
Effective July 1, 2017, when a LEOFF employer charges a fee or recovers costs for services rendered by a LEOFF 2
member to a non-LEOFF employer, the LEOFF employer must cover both the employer and state contributions on the
LEOFF 2 basic salary earned for those services. The state contribution rate (expressed as a percentage of covered payroll)
was 3.41% in 2023.
The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for 2023 were as follows:
LEOFF Plan 2
Actual Contribution Rates: Employer Employee
January—August 2023
State and local governments 5.12% 8.53%
Administrative Fee 0.18%
Total 5.30% 8.53%
Actual Contribution Rates: Employer Employee
September— December 2023
State and local governments 5.12% 8.53%
Administrative Fee 0.20%
Total 5.32% 8.53%
The City's actual contributions to the plan were $804,151 for the year ended December 31, 2023.
The Legislature, by means of a special funding arrangement, appropriates money from the state General Fund to
supplement the current service liability and fund the prior service costs of Plan 2 in accordance with the recommendations
of the Office of the State Actuary and the LEOFF Plan 2 Retirement Board. This special funding situation is not mandated
by the state constitution and could be changed by statute. For the state fiscal year ending June 30, 2023, the state
contributed $87,966,142 to LEOFF Plan 2. The amount recognized by the City as its proportionate share of this amount
is $508,739.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation
completed in 2023 with a valuation date of June 30, 2022. The actuarial assumptions used in the valuation were based
on the results of the Office of the State Actuary's (OSA) 2013-2018 Demographic Experience Study and the 2021
Economic Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2022 actuarial valuation report.
The TPL was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2023. Plan
95
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
liabilities were rolled forward from June 30, 2022, to June 30, 2023, reflecting each plan's normal cost (using the entry-
age cost method), assumed interest and actual benefit payments.
• Inflation: 2.75%total economic inflation; 3.25% salary inflation
• Salary increases: In addition to the base 3.25% salary inflation assumption, salaries are also expected to grow
by service-based salary increase.
• Investment rate of return: 7.00%
Mortality rates were developed using the Society of Actuaries' Pub. H-2010 mortality rates,which vary by member status
(e.g. active, retiree, or survivor), as the base table. The OSA applied age offsets for each system, as appropriate, to
better tailor the mortality rates to the demographics of each plan. OSA applied the long-term MP-2017 generational
improvement scale, also developed by the Society of Actuaries, to project mortality rates for every year after the 2010
base table. Mortality rates are applied on a generational basis; meaning, each member is assumed to receive additional
mortality improvements in each future year throughout their lifetime.
Methods did not change from the prior contribution rate setting June 30, 2021, Actuarial Valuation Report (AVR). OSA
did make an assumption change to adjust TRS Plan 1 assets, LEOFF Plan '/s assets, and LEOFF participant data to reflect
certain material changes occurring after the June 30, 2022 measurement date.
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.00 percent.
To determine that rate, an asset sufficiency test was completed to test whether each pension plan's fiduciary net position
was sufficient to make all projected future benefit payments for current plan members. Based on OSA's assumptions,
the pension plans' fiduciary net position was projected to be available to make all projected future benefit payments of
current plan members. Therefore, the long-term expected rate of return of 7.00 percent was used to determine the
total liability.
Long-Term Expected Rate of Return
The long-term expected rate of return on the DRS pension plan investments of 7.00 percent was determined using a
building-block-method. In selecting this assumption, OSA reviewed the historical experience data, considered the
historical conditions that produced past annual investment returns, and considered Capital Market Assumptions (CMA
s) and simulated expected investment returns provided by the Washington State Investment Board (WSIB). The WSIB
uses the CMA's and their target asset allocation to simulate future investment returns at various future times.
Estimated Rates of Return by Asset Class
The table below summarizes the best estimates of arithmetic real rates of return for each major asset class included in the
pension plan's target asset allocation as of June 30, 2021. The inflation component used to create the table is 2.2% and
represents the WSIB's most recent long-term estimate of broad economic inflation.
Long-Term Expected
Asset Class Target Allocation Real Rate of Return
Arithmetic
Fixed Income 20% 1.5%
Tangible Assets 7% 4.7%
Real Estate 18% 5.4%
Global Equity 32% 5.9%
Private Equity 23% 8.9%
100%
96
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Sensitivity of Net Pension Liability/(Asset)
The table below presents the City's proportionate share of the net pension liability calculated using the discount rate of
7.00 percent, as well as what the City's proportionate share of the net pension liability would be if it were calculated
using a discount rate that is 1-percentage point lower (6.00 percent) or 1-percentage point higher (8.00 percent) than
the current rate.
1% Decrease Current Discount Rate 1% Increase
(6.00%) (7.00%) (8.00%)
PERS 1 $ 5,586,432 $ 3,998,662 $ 2,612,911
PERS 2/3 10,071,216 (9,259,868) (25,141,574)
LEOFF 1 (2,452,750) (2,766,139) (3,037,895)
LEOFF 2 $ 1,401,704 $ (8,465,780) $ (16,541,468)
Pension Plan Fiduciary Net Position
Detailed information about the State's pension plans' fiduciary net position is available in the separately issued DRS
financial report.
Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
At June 30, 2023, the City reported its proportionate share of net pension liabilities and assets as follows:
Liability (Asset)
PERS 1 $ (3,998,662)
PERS 2/3 9,259,868
LEOFF 1 2,766,139
LEOFF 2 $ 8,465,780
The amount of the assets reported above for LEOFF Plans 1 and 2 reflects a reduction for State pension support provided
to the City. The amount recognized by the City as its proportionate share of the net pension asset, the related State
support, and the total portion of the net pension asset that was associated with the City were as follows:
LEOFF 1 Asset I LEOFF 2 Asset
Employer's proportionate share $ (2,766,139) $ (8,465,780)
State's proportionate share of the net (18,710,096) (5,406,160)
pension asset associated with the employer
TOTAL $ (21,476,235) $ (13,871,939)
At June 30, 2023, the City's proportionate share of the collective net pension liabilities was as follows:
Proportionate Proportionate Share Change in
Share 6/30/22 6/30/23 Proportion
1 PERS 1 0.176504% 0.175170% (0.001334)% 1
PERS 2/3 0.230198% 0.225923% (0.004275)%
LEOFF 1 0.093826% 0.093198% (0.000628)%
LEOFF 2 0.367227% 0.352947% (0.01428)%
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30, 2023, are used
as the basis for determining each employer's proportionate share of the collective pension amounts reported by the DRS
in the Schedules of Employer and Nonemployer Allocations for all plans except LEOFF 1.
LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF 1 from 1971
through 2000 and the retirement benefit payments in fiscal year 2023. Historical data was obtained from a 2011 study
by the Office of the State Actuary (OSA). The state of Washington contributed 87.12% percent of LEOFF 1 employer
contributions and all other employers contributed the remaining 12.88% percent of employer contributions. LEOFF 1
is fully funded, and no further employer contributions have been required since June 2000. If the plan becomes
underfunded, funding of the remaining liability will require new legislation. The allocation method the plan chose
reflects the projected long-term contribution effort based on historical data.
In fiscal year 2023, the state of Washington contributed 39% percent of LEOFF 2 employer contributions pursuant to
RCW 41.26.725 and all other employers contributed the remaining 61% percent of employer contributions.
Pension Expense
For the year ended December 31, 2023, the City recognized pension expense as follows:
Pension Expense
PERS 1 $ (81,318)
PERS 2/3 (1,132,710)
LEOFF 1 (227,285)
LEOFF 2 11,072
TOTAL $ (1,430,241)
98
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following:
PERS 1 Deferred Outflows Deferred Inflows of
of Resources Resources
Net difference between projected and actual investment $ $ (451,066)
earnings on pension plan investments
Contributions subsequent to the measurement date 505,683
TOTAL $ 505,683 $ (451,066)
PERS 2/3 Deferred Outflows Deferred Inflows of
of Resources Resources
Differences between expected and actual experience $ 1,886,225 $ (103,461)
Net difference between projected and actual investment (3,489,678)
earnings on pension plan investments
Changes of assumptions 3,887,613 (847,347)
Changes in proportion and differences between 122,891 (185,230)
contributions and proportionate share of contributions
Contributions subsequent to the measurement date 1,070,910
TOTAL $ 6,967,638 $ (4,625,716)
LEOFF 1 Deferred Outflows Deferred Inflows of
of Resources Resources
Net difference between projected and actual investment $ $ (183,421)
earnings on pension plan investments
TOTAL $ $ (183,421)
LEOFF 2 Deferred Outflows Deferred Inflows of
of Resources Resources
Differences between expected and actual experience $ 3,458,031 $ (69,650)
Net difference between projected and actual investment (1,791,340)
earnings on pension plan investments
Changes of assumptions 2,162,552 (695,397)
Changes in proportion and differences between 942,301 (249,429)
contributions and proportionate share of contributions
Contributions subsequent to the measurement date 407,824
TOTAL $ 6,970,708 $ (2,805,816)
Deferred outflows of resources related to pensions resulting from the City's contributions subsequent to the measurement
date will be recognized as a reduction of the net pension liability in the year ended December 31, 2024. Other amounts
reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Year ended PERS 1 PERS 2/3 LEOFF 1 LEOFF 2
December 31
2024 (306,887) (1,701,832) (125,760) (631,888)
2025 (385,946) (2,048,138) (157,812) (921,166)
2026 237,968 2,868,825 97,896 1,627,891
2027 3,798 1,049,706 2,254 641,557
2028 - 1,042,426 - 711,309
Thereafter $ - $ 60,025 $ - $ 2,329,364
99
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
City of Auburn Fire Relief and Pension Plan
The City is the administrator of the Firemen's Pension Plan (Plan), which is a closed, single-employer defined benefit
pension plan that was established in conformance with RCW Chapters 41.16 and 41.18. This plan provides retirement
and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries.
Membership is limited to firefighters employed prior to March 1, 1970, when the LEOFF retirement system was
established. The City's obligation under the Firemen's Pension Plan consists of paying all benefits, including payments
to beneficiaries and healthcare, for firefighters who retired prior to March 1, 1970, and excess pension and healthcare
benefits of LEOFF for covered firefighters who retired after March 1, 1970. Benefits and refunds of the defined benefit
pension plan are recognized when due and payable in accordance with the Plan. The Plan does not issue a separate
financial report. Membership of the Firemen's Pension Plan consisted of 11 eligible inactive employees or their
beneficiaries, of which 10 received city paid benefits. There are no active employees in this plan.
Under state law, the Firemen's Pension Plan is provided an allocation of 25% of all monies received by the state from
taxes on fire insurance premiums (which is not considered a special funding situation), interest earnings, member
contributions made prior to the inception of LEOFF, and City contributions required to meet projected future pension
obligations. In 2023, $114,235 was received from the state from taxes on fire insurance premiums, and $89,097 was
received from interest earnings. On-behalf payments of fringe benefits and salaries for the City's employees were
recognized as revenues and expenditures/expenses during the period. Administrative costs, such as City staff time and
actuarial valuation costs are funded from interest earnings or City contributions.
The City has determined that GASB Statement No. 67—Financial Reporting for Pension Plans;an amendment of GASB
Statement No. 25 does not apply to the City's single-employer Fire Relief and Pension Fund as there are no assets
accumulated in a qualifying trust and it does not meet the criteria applicability set by the statement as the contributions
to that fund are not irrevocable. Plan assets may be used to cover medical expenses which are outside of the scope of
the pension plan benefits. Therefore, the Fire Relief and Pension Fund has been presented in conformance with GASB
Statement No. 73—Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope
of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68.
The following table represents the plan aggregate pension amounts for 2023:
Aggregate Pension Amounts— Fire Relief and Pension Plan
Pension liabilities $ 2,915,957
Pension expense/expenditures $ 526,869
Service Retirement Benefit
The amount of a members benefit is based upon the rank of the firefighter at the time of retirement and amounts to
50% of salary plus an additional 2% for each year of service in excess of 25 years, to a maximum benefit of 60% of
salary. An annual post-retirement increase is determined based upon 2 factors:
• escalation by salary in proportion to the current salary of rank from which the firefighter retired (RCW
41.18.040), and
• increase proportionate to the annual increase in the Seattle-area CPI and regardless of the increase (or decrease)
in the CPI, the benefits are increased at least 2% each year. (RCW 41.18.104)
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Assumptions and Other Inputs to the Total Pension Liability
GASB Statement 73 requires a schedule of changes in Total Pension Liability from year to year. Both the December 31,
2022, and the December 31, 2023, amounts are based on the below specified actuarial valuation (the valuation date)
and then projected forward to the measurement date. The measurement date is the date as of which the total pension
liability is determined.
The discount rate and other key actuarial assumptions utilized are noted below:
Fire Relief and Pension Plan December 31, 2022 1 December 31, 2023
Discount Rate—municipal bond rate °
(average rating AA/Aa or higher) 3.75% 3.25 /o
Valuation Date January 1, 2021 January 1, 2023
Measurement Date December 31, 2022 December 31, 2023
Inflation 2.25% 2.50%
Salary Increases Including Inflation 3.25% 3.50%
Pub-2010 Safety Mortality Pub-2010 Safety Mortality
Table (headcount- Table (headcount-
weighted) with ages set weighted) with ages set
back one year for males is back one year for males is
used for healthy used for healthy
annuitants. Pub-2010 annuitants. Pub-2010
Safety Disabled Mortality Safety Disabled Mortality
Table is used for disabled Table is used for disabled
annuitants. A blend of annuitants. A blend of
Mortality rates from Pub-2010 rates from Pub-2010
Mortality Tables for Mortality Tables for
contingent annuitants and contingent annuitants and
retirees is used for retirees is used for
surviving spouses. surviving spouses.
Mortality rates are Mortality rates are
projected forward projected forward
generationally using the generationally using the
ultimate rates in ultimate rates in
Projection Scale MP-2017. Projection Scale MP-2017.
Actuarial Cost Method Entry Age Normal Entry Age Normal
Total Pension Liability
The following table represents the changes in the total pension liability for 2023:
Fire Relief and Pension Plan Increase (Decrease)
Total Pension Liability
Balances as of December 31, 2022 $ 2,498,278
Changes for the year:
Interest on total pension liability 89,534
Effect of economic/demographic gains or losses 373,785
Effect of assumptions, changes or inputs 177,785
Benefit payments (223,425)
Balances as of December 31, 2023 $ 2,915,957
Benefit payments are estimated based on expected payouts.
101
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Sensitivity Analysis
The following table presents the total pension liability of the City, calculated using the discount rate of 3.25%, as well
as what the City's total pension liability would be if it were calculated using a discount rate that is 1 percentage point
lower (2.25%) or 1 percentage point higher (4.25%) than the current rate.
1% Decrease Current Discount Rate 1% Increase
(2.25%) (3.25%) (4.25%)
$ 3,179,412 $ 2,915,957 $ 2,687,154
Pension Expense
The amount of pension expense recognized by the City for the reporting period is as follows:
Fire Relief and Pension Plan January 1, 2022 to January 1, 2023 to
December 31, 2022 December 31, 2023
Interest on Total Pension Liability $ 59,120 $ 89,534
Contributions From State Fire Insurance Premium Tax (104,661) (114,235)
Recognition of Deferred Inflows/Outflows of Resources:
Recognition of Economic/Demographic Gains/Losses 0 373,785
Recognition of Assumption Changes or Inputs (422,100) 177,785
Pension Expense $ (467,641) $ 526,869
Deferred Outflows/Inflows of Resources
As of December 31, 2023, there are no deferred outflows and inflows of resources.
NOTE 10 - OTHER POST-EMPLOYMENT BENEFITS
The following table represents the aggregate OPEB amounts for all plans subject to the requirements of GASB Statement
75 for the year 2023:
Aggregate OPEB Amounts
OPEB Liabilities $ 9,307,343
OPEB expense/expenditures $ (1,193,658)
Plan Description
The city is the administrator of the Law Enforcement Officer and Fire Fighter(LEOFF) 1 employees plan providing lifetime
medical care. The plan is a single employer, defined benefit, other post-employment benefit plan (OPEB). The plan
does not issue a separate standalone financial report.
Benefits Provided
Effective March 1, 1970, the LEOFF plan was established by the Legislature under Revised Code of Washington (RCW)
Chapter 41.26. LEOFF members who joined the system by September 30, 1977, are Plan 1 members. In addition, the
City is required to pay post-employment benefits in accordance with RCW Chapter 41.16 and 41.18; all medical and
long-term care as long as a disability exists are covered for any active firefighter hired prior to March 1, 1970. For any
retired firefighter hired prior to March 1, 1970, medical and long-term care are covered at the discretion of the Retirement
Board. Members retired prior to 1961 for reasons other than duty disability are not eligible for medical benefits during
retirement.
102
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
The City OPEB plan provides medical, prescription drug, dental, Medicare Part B premiums, long-term care, and vision
expenses for retirees. The plan does not cover dependent spouses and children. The City's cost is reduced by any
amounts retirees receive from Medicare or other health plans.
Funding Policy
The plan is funded on a pay-as-you-go basis from the General Fund and there are no assets accumulated in a qualifying
trust.
Membership
As of December 31, 2023, there are 32 retirees and 0 active employees meeting the eligibility requirements of a LEOFF
1 member. This is considered a closed group with no new members.
Retirees currently receiving benefits 32
Total 32
OPEB Liability
The actuarial valuation date is January 1, 2023. This is the date as of which the actuarial valuation was performed. The
measurement date is December 31, 2023. This is the date as of which the total OPEB liability under GASB 75 is
determined. The Reporting Date is the Plan's and City's fiscal year ending date, December 31, 2023. Updated
procedures were used to roll forward the total OPEB liability to the measurement date.
Assumptions and Other Inputs
Several assumptions are used in development of the OPEB plan actuarial valuation as discussed below.
GASB 75 requires the discount rate used to measure the Total OPEB Liability (the Actuarial Accrued Liability calculated
using the Individual Entry Age Normal Cost Method) to be a yield or index rate for 20-year, tax exempt general
obligation municipal bonds with an average rating of AA/Aa or higher. The Bond Buyer General Obligation 20-bond
municipal bond index for bonds that mature in 20 years is 3.26% as of December 28, 2023. Rounding this to the
nearest Y% results in a discount rate of 3.25% as of the December 31, 2023, measurement date.
A medical (healthcare) and dental trend rate of 5.50%along with a long-term care inflation rate of 4.75%and Medicare
Part B trend rate of 7.30% were used in calculating the December 31, 2023, OPEB Liability.
Mortality assumptions are based on the Pub-2010 Safety Mortality Table (headcount-weighted) with generational
projection using the ultimate rates in Projection Scale MP-2017, with ages set back one year for males. For disabled
members, mortality assumptions are based on Pub-2010 Safety Disability Mortality Table with generational projection
using the ultimate rates in Projection Scale MP-2017.
Sensitivity Analysis
The following presents the total OPEB liability of the City, calculated using the current healthcare cost trend rates as well
as what the City's total OPEB liability would be if it were calculated using trend rates that are one percentage point
lower or one percentage point higher than the current trend rates.
1% Decrease Current Trend Rate 1% Increase
Total December 31, 2023
OPEB Liability $ 8,418,603 $ 9,307,343 $ 10,327,869
103
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
The following presents the total OPEB liability of the City calculated using the discount rate of 3.25%, as well as what
the City's total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower
(2.25%) or one percentage point higher (4.25%) than the current rate.
1% Decrease Current Discount 1% Increase
Rate
Total December 31, 2023
OPEB Liability $ 10,409,691 $ 9,307,343 $ 8,376,328
The following table represents the changes in total OPEB liability for 2023:
OPEB LEOFF Plan 1 Increase (Decrease)
Total OPEB Liability
Balance as of December 31, 2022 $ 10,956,157
Changes for the Year:
Interest on Total OPEB Liability 402,400
Effect of economic/demographic (gains) or losses (1,969,219)
Effect of Assumptions, Changes or Inputs 373,161
Expected Benefit Payments (455,156)
Balance as of December 31, 2023 $ 9,307,343
For the year ended December 31, 2023, the City recognized an OPEB expense of $ (1,193,658).
Changes in assumptions that affected measurement of the total OPEB liability since the prior measurement date include
changes in premiums and claims, mortality, and trends.
The City reported no deferred outflows of resources and no deferred inflows of resources related to OPEB.
NOTE 11 — ASSOCIATION OF WASHINGTON CITIES EMPLOYEE BENEFIT TRUST ("Trust")
Trust Description
The City of Auburn is a member of the Association of Washington Cities Employee Benefit Trust Health Care Program
(AWC Trust HCP). Chapter 48.62 RCW provides that two or more local government entities may, by Interlocal
agreement under Chapter 39.34 RCW,form together or join a pool or organization for the joint purchasing of insurance,
and/or joint self-insurance, to the same extent that they may individually purchase insurance or self-insure.
An agreement to form a pooling arrangement was made pursuant to the provisions of Chapter 39.34 RCW,the Interlocal
Cooperation Act. The AWC Trust HCP was formed on January 1, 2014, when participating cities, towns, and non-city
entities of the AWC Employee Benefit Trust in the State of Washington joined together by signing an Interlocal
Governmental Agreement to jointly self-insure certain health benefit plans and programs for participating employees,
their covered dependents, and other beneficiaries through a designated account within the Trust.
As of December 31, 2023, 264 cities/towns/non-city entities participate and have enrollment in the AWC Trust HCP.
The AWC Trust HCP allows members to establish a program of joint insurance and provides health and welfare services
to all participating members.
104
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
In April 2020, the Board of Trustees adopted a large employer policy, requiring newly enrolling groups with 600 or
more employees to submit medical claims experience data in order to receive a quote for medical coverage. Outside of
this, the AWC Trust HCP pools claims without regard to individual member experience. The pool is actuarially rated
each year with the assumption of projected claims run out for all current members.
The AWC Trust HCP includes medical, dental and vision insurance through the following carriers: Kaiser Foundation
Health Plan of Washington, Kaiser Foundation Health Plan of Washington Options, Inc., Regence BlueShield, Asuris
Northwest Health, Delta Dental of Washington,Willamette Dental Group, and Vision Service Plan. Eligible members are
cities and towns within the state of Washington. Non-city entities (public agency, public corporation, intergovernmental
agency, or political subdivision within the state of Washington) are eligible to apply for coverage into the AWC Trust
HCP, submitting application to the Board of Trustees for review as required in the Trust Agreement.
Participating employers pay monthly premiums to the AWC Trust HCP. The AWC Trust HCP is responsible for payment
of all covered claims. In 2023, the AWC Trust HCP purchased medical stop loss insurance for Regence/Asuris and Kaiser
plans at an Individual Stop Loss (ISL) of $2 million through United States Fire Insurance Company. The aggregate policy
is for 200% of expected medical claims.
Participating employers' contract to remain in the AWC Trust HCP for a minimum of three years. Participating employers
with over 250 employees must provide written notice of termination of all coverage a minimum of 12 months in
advance of the termination date, and participating employers with under 250 employees must provide written notice
of termination of all coverage a minimum of 6 months in advance of termination date. When all coverage is being
terminated,termination will only occur on December 31. Participating employers terminating a group or line of coverage
must notify the AWC Trust HCP a minimum of 60 days prior to termination. A participating employer's termination
will not obligate that member to past debts, or further contributions to the AWC Trust HCP. Similarly, the terminating
member forfeits all rights and interest to the AWC Trust HCP Account.
The operations of the Health Care Program are managed by the Board of Trustees or its delegates.The Board of Trustees
is comprised of four regionally elected officials from Trust member cities or towns, the Employee Benefit Advisory
Committee Chair and Vice Chair, and two appointed individuals from the AWC Board of Directors,who are from Trust
member cities or towns.The Trustees or its appointed delegates review and analyze Health Care Program related matters
and make operational decisions regarding premium contributions, reserves, plan options and benefits in compliance with
Chapter 48.62 RCW. The Board of Trustees has decision authority consistent with the Trust Agreement, Health Care
Program policies, Chapter 48.62 RCW and Chapter 200-110-WAC.
The accounting records of the AWC Trust HCP are maintained in accordance with methods prescribed by the State
Auditor's office under the authority of Chapter 43.09 RCW. The AWC Trust HCP also follows applicable accounting
standards established by the Governmental Accounting Standards Board ("GASB"). In 2018, the retiree medical plan
subsidy was eliminated,and is noted as such in the report for the fiscal year ending December 31,2018.Year-end financial
reporting is done on an accrual basis and submitted to the Office of the State Auditor as required by Chapter 200-110
WAC. The audit report for the AWC Trust HCP is available from the Washington State Auditor's office.
105
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
NOTE 12 — CONSTRUCTION COMMITMENTS
As of December 31, 2023, the City had the following contractual obligations on construction projects:
Schedule of Outstanding Construction Obligations
As of December 31, 2023
Amount Outstanding
Arterial Street Fund $2,293,695
Local Street Fund 948,392
Arterial Street Preservation Fund 893,313
Municipal Parks Construction 449,236
Capital Improvements 440,164
Water Capital Fund 7,110,187
Sewer Capital Fund 365,276
Storm Capital Fund 2,803,577
Airport Capital Fund 1,479,091
Equipment Rental Capital Fund 8,674
Total $16,791,604
NOTE 13 — CEMETERY ENDOWED CARE FUND
The City maintains one permanent fund known as the cemetery endowed care fund. Paid into this fund is 10% of the
base, pre-tax sales price of each grave, niche, or crypt. This fund is irreducible in principal and no part of the income of
this fund shall ever be used for purposes other than those specified upon the creation of the fund.
RCW 68.44.020 restricts the use of endowment net appreciation to endowment care "stipulated in the instrument by
which the fund was established". For the City, the instrument that established the fund is Auburn City Code section
3.04.080, and section 3.040.120 governs the use of the fund.
ACC 3.04.120 restricts net interest or income from investments to the care of the lots and in the improvement or
embellishment of the cemetery or the erection or preservation of any buildings or structures, fences, or walks, or for the
repair, preservation, erection or renewal of any tomb, monument, grave, stone, fence, railing, or other erection in or
around the cemetery. The funds may also be used for planting and cultivating trees, shrubs, flowers, or plants in or
around the cemetery. All expenditures of income from the fund must first be authorized by the City Council.
For 2023 of the $108,267 net appreciation on investments, all was available for expenditures. Amounts that are
available for expenditure are reflected as assigned fund balance.
NOTE 14—JOINT VENTURES/ RELATED PARTY
Valley Communications Center
The "Valley Communications Center," hereafter referred to as ValleyCom, was established August 20, 1976, when an
Interlocal Agreement was entered into by four participating municipal corporations: Auburn, Kent, Renton,and Tukwila.
The provisions and terms of the "Interlocal Cooperation Act", pursuant to RCW 39.34, sanction the agreement. On
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
August 4, 1999, the Administration Board of ValleyCom voted to include the City of Federal Way as a full participating
member city as of January 1, 2000. The five participating municipal corporations that include the cities of Auburn,
Federal Way, Kent, Renton, and Tukwila on April 17, 2000, entered into a new Interlocal Agreement, pursuant to RCW
39.34, et seq. This agreement reaffirmed ValleyCom as a governmental administration agency pursuant to RCW
39.34.030 (3) (b). The initial duration of the agreement was five years and thereafter is automatically extended for
consecutive five-year periods, unless terminated as provided by the agreement.
Any Member City may withdraw its membership and terminate its participation in this agreement by providing written
notice and serving that notice on the other Member Cities on or before December 31 in any one year. After providing
appropriate notice such termination shall then become effective on the last day of the year following delivery and service
of notice to all other Member Cities. Three or more Member Cities may call for a complete termination of ValleyCom,
upon supermajority vote ValleyCom will be directed to wind up business and a date will be set for final termination.
Final termination shall be at least one year from the date of the vote to terminate this agreement. The agreement shall
not terminate until all bonds issued by the Valley Communications Center Development Authority have been paid and
retired.
The purpose of the ValleyCom joint operation is to provide improved consolidated emergency communications
(dispatch) services for police, fire, and medical aid to the five participating cities and to several subscribing agencies,
which include Public Safety Partners, Fire and EMS Partners and Emergency Backup Facilities. The subscribing agencies
include City of Algona, City of Black Diamond, City of Des Moines, City of Pacific, Enumclaw Fire, King County Airport,
King County Fire Districts #2, #20, #44, #47, King County Medic One, Puget Sound Regional Fire Authority, North
Highline Fire Department, Renton Regional Fire Authority, South King Fire and Rescue, Valley Regional Fire Authority,
Vashon Island Fire and Rescue and King County Sheriff's Office. Separate agreements between ValleyCom and the
subscribing agencies have been executed, which set forth condition of services and rates charged.
The participating cities provide the majority of revenues to ValleyCom. The method of allocating revenue source was
changed in 1990 to a basis of prior year's calls with actual first and second quarter and estimated third and fourth quarter
calls. The allocation of prorated financial participation among the five participating cities is the percentage of estimated
dispatched calls attributed to each jurisdiction compared to the total actual and estimated dispatched calls,for the period
for January 1 through December 31. The percentages are applied to the current approved budget, less revenue from
subscribing agencies and all other sources. The 2023 cost distribution for the five participating cities is as follows:
Dispatchable Percent of
Calls Total *
Auburn 67,644 20.81%
Federal Way 66,332 20.40%
Kent 87,959 27.06%
Renton 69,831 21.48%
Tukwila 33,328 10.25%
Total 325,094 100.00%
*Distribution of current year net income is based on these budgeted percentages.
SOURCE: ValleyCom-2023 Owner Equity Allocation
ValleyCom is served by an Administration Board composed of the Mayors or designated representatives from the five
participating cities of Auburn, Kent, Renton, Tukwila, and Federal Way. In 2019, 3 nonvoting members were added to
the Administration Board, one for each of the 3 disciplines VCC serves: law enforcement, fire, and paramedics. The
Administration Board is responsible for the following functions: 1) Reviews and approves the Valley Corn budget; 2)
Appoints and supervises the Executive Director; 3) Approves administrative and personnel policies; 4) Reviews and
approves contracts and agreements; 5) Reviews and approves disbursement of funds by ValleyCom; 6) Approves or
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
disapproves recommendations from the Executive Director and the Operations Board; and 7) Sets the long-term strategic
vision for the organization.
In addition, an Operations Board provides operational guidance and support to ValleyCom. The Operations Board is
comprised of 2 members of each participating Member City's Public Safety Department(s), including the head of those
Department(s) and/or their designee(s), one appointed representative from Police contract agencies, and one appointed
representative from Fire contract agencies. In 2019, the Chief of King County Medic One was added as a member of the
Board. The Operations Board performs the following functions: 1) Responsible for operational policies and procedures;
2) assists staff and the Administration Board with strategic planning; 3) Makes recommendations on the selection of the
Executive Director; and 4) Members serve on supporting groups including the Finance Committee and The Advisory
Committee on Technology (ACT).
The Director presents a proposed budget to the Operations Board on or before August 15 of each year. Said budget is
then presented to the Administration Board by September 1 of each year. The Administration Board can make changes
to the proposed ValleyCom budget as it finds necessary, but final approval falls to the legislative body of each
participating city in accordance with the provisions of the Interlocal Agreement.
In August 1993, ValleyCom entered into an Interlocal Cooperation Agreement, pursuant to Chapter 39.34 RCW, with
the sub-regions of King County, Seattle, and Eastside Public Safety Communications Agency (EPSCA). This agreement
governs the development, acquisition, and installation of the 800 MHz emergency radio communications system
(system) funded by the $57 million King County levy, King County Emergency Trunked Radio System (KCETRS). This
agreement provides that upon voluntary termination of any sub-region participation in the system, it surrenders its radio
frequencies, relinquishes its equipment, and transfers any unexpended levy proceeds and association equipment
replacement reserves to another sub-region or consortium of sub-regions. The Puget Sound Emergency Radio Network
(PSERN),of which ValleyCom is a stakeholder, is a regional effort underway to replace KCETRS.ValleyCom will maintain
the functionality of their portion of KCETRS until this time until it is replaced. They will continue to have 800 MHz fund
expenses into 2024 as the old system is disassembled as well as incurring new radio charges from PSERN.
The share of equity belonging to the five participating cities is as follows:
Item Auburn Federal Way Kent Renton Tukwila Total
Restated Equity Dec 31, 2022 $ 8,834,669 $ 7,627,742 $ 11,560,686 $8,610,737 $ 4,114,494 $ 40,748,328
Current year change 1,016,695 996,975 1,322,034 1,049,574 500,926 4,886,204
Equity Dec 31, 2023 $ 9,851,364 $ 8,624,717 $12,882,720 $ 9,660,311 $ 4,615,420 $ 45,634,532
of equity 21.59% 18.90% 28.23% 21.17% 10.11%
of 2023 distribution 20.81% 20.40% 27.06% 21.48% 10.25%
SOURCE:• ValleyCom-2023 Owner Equity Allocation
Liabilities are the responsibility of the five participating cities in direct proportion to their equity position. Complete
audited financial statements for ValleyCom can be obtained from Valley Communications Center, 27519 108th Ave SE,
Kent,WA 98030, telephone 253-372-1300 or www.valleycom.org.
South Correctional Entity (SCORE)
On February 25,2009,the Cities of Auburn, Burien, Des Moines, Federal Way, Renton,SeaTac and Tukwila,Washington
(Member Cities) entered into a SCORE Facility Interlocal Agreement (as amended and restated on October 1, 2009, the
"2009 Interlocal Agreement") pursuant to chapter 39.34 RCW (Interlocal Cooperation Act) to jointly construct, equip,
maintain and operate a consolidated regional misdemeanant correctional facility located in Des Moines, Washington
(SCORE Facility) to serve the parties to the 2009 Interlocal Agreement and state agencies and other local governments
(Subscribing Agencies) to provide correctional services essential to the preservation of the public health, safety and
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
welfare. To carry out the purposes of the 2009 Interlocal Agreement and to operate, manage and maintain the SCORE
Facility, the Member Cities formed the South Correctional Entity (SCORE), a separate governmental administrative
agency pursuant to the 2009 Interlocal Agreement and RCW 39.34.030(3).
The 2009 Interlocal Agreement named the City of Des Moines as the "Host City" and the remaining Member Cities as
the "Owner Cities". Pursuant to a separate "Host City Agreement" dated October 1, 2009, the Host City will not enjoy
the same equity position as the Owner Cities until all debts issued are paid and the Host City fulfills all of its obligations
as outlined in the Host City Agreement. Pursuant to SCORE financial policies, all unexpended funds or reserve funds
shall be distributed based on the percentage of the Member City's average daily population at the SCORE Facility for
the last three (3) years regardless of its Owner City or Host City status. SCORE and the SCORE Facility may serve the
Member Cities and Subscribing Agencies which are in need of correctional facilities. Any agreement with a Subscribing
Agency shall be in writing and approved by SCORE as provided within the SCORE Formation Interlocal Agreement.
SCORE, a governmental administrative agency formed under the Interlocal Cooperation Act, is not expressly authorized
to issue bonds. To finance and refinance the costs of the SCORE Facility, the City of Renton,Washington, chartered the
South Correctional Entity Facility Public Development Authority as a public corporation pursuant to RCW 35.21.730
through 35.21.757 (Public Corporation Act) and Ordinance No. 5444, passed on February 2, 2009 (Charter Ordinance).
2009 Bonds. The SCORE PDA issued its Bonds, Series 2009A (2009A Bonds) and Bonds, Series 2009B (Taxable Build
America Bonds—Direct Payment) (2009B Bonds, and together the 2009 Bonds) on November 4, 2009, in the aggregate
principal amount of$86,235,000. Proceeds of the 2009 Bonds were used to finance a portion of the costs of acquiring,
constructing, developing, equipping, and improving the SCORE Facility, to capitalize interest during construction, and
to pay costs of issuance for the 2009 Bonds.
Pursuant to the 2009 Interlocal Agreement and the ordinances of each city, each Owner City (which included the Cities
of Auburn, Burien, Federal Way, Renton, SeaTac, and Tukwila) was obligated to budget for and pay its share, and only
its share, of the principal of and interest on the 2009 Bonds as the same become due and payable (referred to as each
Owner City's 2009 Capital Contribution). Each Owner City's obligation to pay its 2009 Capital Contribution is an
irrevocable, unconditional full faith and credit obligation of such Owner City, payable from regular property taxes levied
within the constitutional and statutory authority provided without a vote of the electors of the Owner City on all the
taxable property within the Owner City and other sources of revenues available therefor.
Subsequent Activities: Refunding of 2009 Bonds and Amendment and Restatement of Interlocal Agreement. Pursuant
to the 2009 Interlocal Agreement, on September 5, 2018, the City of Federal Way gave its notice of intent to withdraw
from SCORE effective December 31, 2019. The remaining Member Cities (including the cities of Auburn, Burien, Des
Moines, Renton, SeaTac, and Tukwila) entered into an Amended and Restated SCORE Interlocal Agreement (2019
Interlocal Agreement),which amended and restated the 2009 Interlocal Agreement in its entirety, removed Federal Way
as a Member City and an Owner City, terminated the Host City Agreement, and made other revisions to provide for
the issuance of bonds to refund the 2009 Bonds. On December 11, 2019,the Authority issued its Refunding Bonds, Series
2019 in the aggregate principal amount of$51,055,000 (2019 Bonds). The 2019 Interlocal Agreement became effective
on the date of issuance of the 2019 Bonds. Proceeds of the 2019 Bonds were used to defease and refund all the
outstanding 2009 Bonds.
Pursuant to the 2019 Interlocal Agreement and the ordinances of each city, each Owner City (including the Cities of
Auburn, Burien, Des Moines, Renton, SeaTac, and Tukwila) is obligated to budget for and pay its share, and only its
share, of the principal of and interest on the 2019 Bonds as the same become due and payable (referred to as each
Owner City's 2019 Capital Contribution). Each Owner City's obligation to pay its 2019 Capital Contribution is an
irrevocable, unconditional full faith and credit obligation of such Owner City, payable from regular property taxes levied
within the constitutional and statutory authority provided without a vote of the electors of the Owner City on all the
taxable property within the Owner City and other sources of revenues available therefor.
The following is a summary of the debt service requirements for the 2019 Bonds:
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
Summary of Debt Service Requirements-Refunding Bonds,2019(Ref 2009A&2009B)
Debt Service Schedule Debt Service Allocation to Owner Cities
Auburn Burien Des Moines Renton SeaTac Tukwila
Year Principal Interest Total 34.94% 4.82% 6.02% 40.96% 3.62% 9.64%
2024 2,070,000 1,839,900 $ 3,909,900 $ 1,366,120 $ 188,457 $ 235,376 $ 1,601,495 $ 141,538 $ 376,914
2025 2,155,000 1,757,100 3,912,100 1,366,889 188,563 235,508 1,602,396 141,618 377,126
2026 2,260,000 1,649,350 3,909,350 1,365,927 188,431 235,343 1,601,270 141,518 376,861
2027 2,375,000 1,536,350 3,911,350 1,366,626 188,527 235,463 1,602,089 141,591 377,054
2028 2,490,000 1,417,600 3,907,600 1,365,315 188,346 235,238 1,600,553 141,455 376,693
2029-2033 14,430,000 5,120,300 19,550,300 6,830,875 942,324 1,176,928 8,007,803 707,721 1,884,649
2034-2038 17,705,000 1,840,250 19,545,250 6,829,111 942,081 1,176,624 8,005,734 707,538 1,884,162
Totals $ 43,485,000 $ 15,160,850 $ 58,645,850 $ 20,490,863 $ 2,826,729 $ 3,530,480 $ 24,021,340 $ 2,122,979 $ 5,653,459
The City of Auburn reports its share of equity interest in the Governmental Activities column within the Government-
wide financial statements under non-current assets. The following summary of the Capital Contributions for the 2019
Bonds is condensed (unaudited) financial information reported as of December 31, 2023, in relation to SCORE:
South Correctional Entity(SCORE)
Member City 2022 Percent of Equity 2022 Equity Balance 2023 Percent of Equity 2023 Apportionment 2023 Equity Balance
Auburn 41.48% $ 14,096,126 41.38% $ 1,218,714 $ 15,314,840
Burien 5.39% 1,831,888 5.68% 268,275 2,100,163
Des Moines 5.02% 1,707,548 5.11% 181,695 1,889,243
Renton 32.11% 10,913,931 32.11% 970,291 11,884,222
SeaTac 8.27% 2,812,314 8.18% 214,728 3,027,042
Tukwila 7.73% 2,627,335 7.54% 163,548 2,790,883
Grand Totals 100.00% $ 33,989,142 100.00% $ 3,017,251 $ 37,006,393 I
I
Completed financial statements for SCORE and SCORE PDA can be obtained at SCORE, Attn: Finance Director, 20817
17th Avenue South, Des Moines,WA 98198.
Since the obligation to fund future joint venture-related debt is separately reported as due to other governments, the
investment in joint ventures is reported as a combination of this debt with the current reported equity in joint ventures
as follows:
Since the obligation to fund future joint venture-related debt is separately reported as due to other governments, the
investment in joint ventures is reported as a combination of this debt with the current reported equity in joint ventures
as follows:
Investment in Joint Ventures
Balance Additions Reductions Balance
12/31/2022 12/31/2023
SCORE Public Development Authority $ 15,888,965 $ - $ (695,306) $ 15,193,659
Total Due to Other Gov't Funds 15,888,965 - (695,306) 15,193,659
Valley Communications Center 8,844,944 1,006,421 - 9,851,365
South Correctional Entity (SCORE) 14,096,126 1,218,714 - 15,314,840
Total Joint Venture Capital Assets 22,941,070 2,225,135 - 25,166,205
Total Investment in Joint Ventures $ 40,359,864
110
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
NOTE 15 -JOINTLY GOVERNED ORGANIZATION / RELATED PARTY
Residents of the cities of Auburn, Algona and Pacific approved in the November 7, 2006, general election the creation
of a regional fire authority pursuant to RCW 52.26. The new regional fire protection service authority, called the Valley
Regional Fire Authority (VRFA), provides first responder fire and emergency medical services to residents of Auburn,
Algona, and Pacific. The VRFA is a new municipal corporation, with its own Governing Board, and is legally separate
from the three cities it serves. The Governing Board of the VRFA consists of the Mayors of the three cities within the
VRFA service area, as well as two Councilmembers from each city. Membership on the Governing Board is made by
appointment from the city council of the respective member cities. Effective January 1, 2007, all personnel, assets,
equipment, and contractual obligations of the former Auburn Fire Department were transferred to the VRFA. Similar
transfers were made by the cities of Algona and Pacific.
In accordance with the interlocal agreement at time of formation, each member city retained its obligation for LEOFF 1
firefighter and Fire Relief and Pension Plan obligations. Premium and benefit payments for retired LEOFF 1 firefighters
for 2023 $330,977. Medical premiums and benefit payments made under the Fire Relief and Pension Plan for 2023
$25,037.
NOTE 16 - CONTINGENCIES AND LITIGATIONS
As of December 31,2023, several claims were pending against the City for damages and legal actions. While the outcome
of these actions is uncertain, no uncovered losses are anticipated at this time with these pending claims. In the event of
a liability finding against the City, it is anticipated that any potential adverse judgment against the City also would be
subject to coverage under the City's general liability insurance.
The City participates in several federal and state assisted programs. These grants are subject to audit by the grantors or
their representatives. Such audits could result in requests for reimbursement to grantor agencies for expenditures
disallowed under the terms of the grants. The City's management believes that such disallowances, if any, will be
immaterial.
NOTE 17 - RISK MANAGEMENT & INSURANCE
Risk Management
The City is exposed to various risks of loss such as: theft and damage and destruction of assets, errors and omissions,
injuries or property damage to others, employees' health, and natural disasters. All risk financing activities are accounted
for in the Insurance internal service fund. To insure against risks of loss the City of Auburn is a member of the Washington
Cities Insurance Authority (WCIA).
Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine
cities originally formed WCIA on January 1, 1981. WCIA was created for the purpose of providing a pooling mechanism
for jointly purchasing insurance, jointly self-insuring, and / or jointly contracting for risk management services. WCIA
has a total of 169 members.
New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A one-
year withdrawal notice is required before membership can be terminated. Termination does not relieve a former
member from its unresolved loss history incurred during membership.
Liability coverage is written on an occurrence basis,without deductibles. Coverage includes general, automobile, police,
errors, or omissions, stop gap, employment practices, prior wrongful acts, and employee benefits liability. Limits are $4
million per occurrence in the self-insured layer, and $16 million in limits above the self-insured layer is provided by
reinsurance. Total limits are $20 million per occurrence subject to aggregates and sublimity. The Board of Directors
determines the limits and terms of coverage annually.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
All Members are provided a separate cyber risk policy and premises pollution liability coverage group purchased by
WCIA. The cyber risk policy provides coverage and separate limits for security&privacy, event management, and cyber
extortion, with limits up to $1 million and subject to member deductibles, sublimits, and a $5 million pool aggregate.
Premises pollution liability provides Members with a $2 million incident limit and $10 million pool aggregate subject to
a $100,000 per incident Member deductible.
Insurance for property, automobile physical damage, fidelity, inland marine, and equipment breakdown coverage are
purchased on a group basis. Various deductibles apply by type of coverage. Property coverage is self-funded from the
members' deductible to $1,000,000, for all perils other than flood and earthquake, and insured above that to $400
million per occurrence subject to aggregates and sublimits. Automobile physical damage coverage is self-funded from the
members' deductible to $250,000 and insured above that to $100 million per occurrence subject to aggregates and
sublimits.
In-house services include risk management consultation, loss control field services, and claims and litigation
administration. WCIA contracts for certain claims investigations, consultants for personnel and land use issues, insurance
brokerage, actuarial, and lobbyist services.
WCIA is fully funded by its members,who make annual assessments on a prospectively rated basis, as determined by an
outside, independent actuary. The assessment covers loss, loss adjustment, reinsurance, and other administrative
expenses. As outlined in the interlocal, WCIA retains the right to additionally assess the membership for any funding
shortfall.
An investment committee, using investment brokers, produces additional revenue by investment of WCIA's assets in
financial instruments which comply with all State guidelines.
A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The
Board elects an Executive Committee and appoints a Treasurer to provide general policy direction for the organization.
The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day to day
operations of WCIA.
No settlement has exceeded insurance coverage over the past three years.
Workers' Compensation
Title 51 RCW requires the City to ensure payment of benefits for job-related injuries and diseases through the Workers'
Compensation fund or through self-insurance. The City become self-insured for Worker's Compensation in 2014. The
funding and allocations for the worker's compensation program are reviewed by an actuary on an annual basis. The
actuarial study made by Bickmore as of December 31, 2023, projected ultimate loss during 2024 and 2025 program
years to be $679,000 and $714,000, respectively. On December 31,2023, incurred but not reported and claims payable
were estimated at $1,192,000. On December 31, 2023, fund net position was $3,379,803. The City carrier's excess
works' compensation insurance coverage with a private carrier for losses exceeding $500,000 per occurrence to a
maximum indemnity in occurrence with statutory limits. Claims handling is currently contracted to an independent,
qualified third-party administrator (TPA).
The Workers Compensation claims liability includes an estimated amount for claims that have been incurred but not
reported (IBNR). Reported claims liabilities are based on the requirements of GASB 10, which requires that a liability
for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a
liability has been incurred at the date of the financial statements and the amount of the loss can be reasonable estimated.
Changes in the Workers Compensation self-insurance fund claims liabilities in 2023 and 2022 were:
CHANGES OF ESTIMATED CLAIMS LIABILITIES FOR 2023 AND 2022
Workers Compensation
2023 2022
Beg. of Year Claims Liabilities $1,132,000 $865,000
Less: Claim Payments (196,083) (195,336)
Plus: Claims and Changes in
Estimates 256,083 462,336
End of Year Claims Liabilities $1,192,000 $1,132,000
112
City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
NOTE 18 -TAX ABATEMENTS
GASB Statement No. 77 defines tax abatements and requires certain disclosures about any tax abatement agreements.
For financial reporting purposes, a tax abatement is defined as a reduction in tax revenues that results from an agreement
between one or more governments and an individual entity in which (a) one or more governments promises to forgo
tax revenues to which they are otherwise entitled and (b) the individual or entity promises to take a specific action after
the agreement has been entered into that contributes to economic development or otherwise benefits the governments
or the citizens of those governments.
The city has the following tax abatement agreements in place as of December 31, 2023:
The city offers a multifamily property tax exemption within the downtown core to encourage construction of new
multifamily housing, and that the provisions of additional housing opportunities in the downtown core will assist in
achieving the goals of the city's comprehensive plan. Under Chapter 84.14 RCW, the city provides the opportunity for
a limited, eight-year exemptions from ad valorem property taxation for a qualified new multifamily and rehabilitated
multifamily housing constructed in the downtown core and twelve-year exemptions from ad valorem property taxation
for qualified new affordable multifamily and rehabilitated multifamily housing contracted in the downtown core.
Abatements are obtained through application by the property owner, including proof of improvements that have been
made, and equal 100 percent of the additional property tax resulting from the increase in assessed value because of the
improvements. If application is approved and all requirements met, exemption begins January Pt, of the year
immediately following the calendar year of issuance of the final certificate of tax emption. If at any time it is determined
the property no longer complies with the terms of the contract or the requirements, or the use of the property for any
reason no longer qualifies for the tax exemption, the tax exemption shall be cancelled and additional taxes, interest and
penalties imposed.
1) Plan A Development LLC, project name Trek Apartments; a four-story building of 126 apartment units with
outdoor plaza and ground parking and retail space. The final certificate of tax exemption was issued December
3, 2015, with the eight-year ad valorem property tax exemption to start with tax year 2016. The city's portion
of the property tax abated during the fiscal year 2023 was $37,588.
2) Merrill Gardens at Auburn LLC, project name Merrill Gardens; a senior living community with 129 apartment
units (114 assisted living units and 15 memory care units). The building is four stories above grade with one level
of below grade parking. The final certificate of tax exemption was issued September 14, 2017, with the eight-
year ad valorem property tax exemption to start with tax year 2018. The city's portion of the property tax
abated during the fiscal year 2023 was $42,977.
3) Altus Group US Inc, project name The Verge Apartments; a 7-story building of 226 apartment units, upper
story outdoor plazas, parking, and ground floor commercial space. The final certificate of tax exemption was
issued on October 14, 2021, with the eight-year ad valorem property tax exemption to start with tax year 2022.
The city's portion of the property tax abated during the fiscal year 2023 was $65,625.
The State of Washington has the following tax abatement that impacts tax revenues of the City:
Aerospace Incentives - The purchase and use of computer hardware, software, or peripherals, including installation
charges is exempt from sales and use tax per RCWs 82.08.975 and 82.12.975 if the buyer uses the purchased items
primarily in developing, designing, and engineering aerospace products.
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City of Auburn: 2023 Annual Comprehensive Financial Report Notes to the Financial Statements
The following table shows the impact to the City of Auburn for taxes abated by the State of Washington during the
calendar year ended September 26, 2023 (the latest information available):
Amount of
Tax Abatement Program Taxes Abated
Aerospace Incentives - Computer Hardware, Software, and Peripherals Sales and
Use Tax Exemption
State law(RCW 82.32.330)forbids the disclosure of sales and use tax information for less than three taxpayers.
Source: Washington State Department of Revenue
NOTE 19 - REPORTING CHANGE
Effective January 1, 2023, the City implemented GASB Statement No. 96, Subscription-Based Information Technology
Arrangements. Under this statement, contracts that provide the City with IT software and associated tangible capital
assets are recognized as a right of use subscription asset and a corresponding liability. Subscription assets and liabilities
are recognized and measured using the facts and circumstances that existed at the beginning of the period of
implementation.
NOTE 20 - SUBSEQUENT EVENTS
The City of Auburn joined counties, cities, and other government agencies ("Group") across the country in several
lawsuits to address the injustice committed by opioid companies and their distributors. As a result of the two lawsuits
settling in the Group's favor, the city will receive approximately $1.4 million in combined settlement distributions over
the course of 17 years. The city has received payments as of year-end 2023 of $78,780.
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City of Auburn: 2023 Annual Comprehensive Financial Report Required Supplemental Information
MANAGERIAL FUNDS
The Cumulative Reserve Fund and the Fire Pension Fund are now combined with the General Fund. For budgetary
purposes, however, they are included and presented as Schedules of Revenues, Expenditures, and Changes in Fund
Balances— Budget to Actual. The City of Auburn has the following managerial funds:
Cumulative Reserve Fund —This fund is for the purpose of revenue stabilization for future operations.
Fire Pension Fund —The City is the administrator of the Firemen's Pension Plan (Plan), which is a closed, single-employer
defined benefit pension plan that was established in conformance with RCW Chapters 41.16 and 41.18. This plan provides
retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries.
115
City of Auburn: 2023 Annual Comprehensive Financial Report Required Supplemental Information
City of Auburn,Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
CUMULATIVE RESERVE FUND
For the Year Ended December 31,2023
Budget Amounts
Variance with Final
Final Actual Budget Positive
Original Adopted Results (Negative)
REVENUES:
Investment Earnings $ 80,000 $ 80,000 $ 1,539,393 $ 1,459,393
Total Revenues 80,000 80,000 1,539,393 1,459,393
EXPENDITURES:
Excess (Deficiency) of Revenues Over (Under)
Expenditures 80,000 80,000 1,539,393 1,459,393
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 4) (1,391,450) (2,681,394) (1,242,019) 1,439,375
Total Other Financing Sources or Uses (1,391,450) (2,681,394) (1,242,019) 1,439,375
Net Change in Fund Balance (1,311,450) (2,601,394) 297,374 2,898,768
Fund Balance- Beginning 30,713,551 30,592,441 30,592,441 -
Fund Balance- Ending $ 29,402,101 $ 27,991,047 $ 30,889,815 $ 2,898,768
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Cumulative Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 (30,889,815)
Fund Balance- Ending (GAAP) $ -
The notes to the basic financial statements are an integral part of this statement.
116
City of Auburn: 2023 Annual Comprehensive Financial Report Required Supplemental Information
City of Auburn,Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
FIRE PENSION FUND
For the Year Ended December 31,2023
Budget Amounts
Variance with Final
Final Actual Budget Positive
Original Adopted Results (Negative)
REVENUES:
Intergovernmental $ 88,400 $ 88,400 $ 114,235 $ 25,835
Investment Earnings 15,200 15,200 89,097 73,897
Total Revenues 103,600 103,600 203,332 99,732
EXPENDITURES:
Current:
Security of Persons and Property 196,256 221,256 223,535 (2,279)
Total Expenditures 196,256 221,256 223,535 (2,279)
Excess (Deficiency) of Revenues Over (Under)
Expenditures (92,656) (117,656) (20,204) 97,452
Net Change in Fund Balance (92,656) (117,656) (20,204) 97,452
Fund Balance- Beginning 1,790,627 1,890,532 1,890,532 -
Fund Balance- Ending 1,697,971 $1,772,876 $ 1,870,328 $ 97,452
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Fire Pension Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 (1,870,328)
Fund Balance- Ending (GAAP) $ -
The notes to the basic financial statements are an integral part of this statement.
117
City of Auburn: 2023 Annual Comprehensive Financial Report Required Supplemental Information
*
*
ACITY of
IB u RN*
WASHINGTON
118
City of Auburn: 2023 Annual Comprehensive Financial Report Required Supplemental Information
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2023
Last 10 Fiscal Years''`
PERS 1 2023 2022 2021 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension 0.175170% 0.176504% 0.177157% 0.176594% 0.184008% 0.190096% 0.192614% 0.194185% 0.192878%
liability(asset)
Employer's proportionate share of the net
pension liability(asset) $ 3,998,662 $ 4,914,519 $ 2,163,502 $ 6,234,722 $ 7,075,761 $ 8,489,752 $ 9,139,685 $10,428,649 $10,089,313
Covered payroll $ 31,471,196 $ 28,798,537 $ 27,362,217 $26,748,878 $ 25,792,744 $24,866,577 $ 24,085,628 $22,947,013 $21,788,519
Employer's proportionate share of the net
pension liability as a percentage of its 12.71% 17.07% 7.91% 23.31% 27.43% 34.14% 37.95% 45.45% 46.31%
covered payroll
Plan fiduciary net position as a percentage 80.16% 76.56% 88.74% 68.64% 67.12% 63.22% 61.24% 57.03% 59.10%
of the total pension liability
PERS 2/3 2023 2022 2021 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension 0.225923% 0.230198% 0.227559% 0.229959% 0.236778% 0.239249% 0.243488% 0.247760% 0.241739%
liability(asset)
Employer's proportionate share of the net $ (9,259,868) $ (8,537,540) $(22,668,538) $ 2,941,045 $ 2,299,919 $ 4,084,964 $ 8,460,044 $12,223,580 $ 8,637,472
pension liability(asset)
Covered payroll $ 31,471,196 $ 28,798,537 $ 27,362,217 $26,748,878 $ 25,763,285 $24,674,226 $ 23,904,107 $22,734,107 $21,460,504
Employer's proportionate share of the net
pension liability as a percentage of its -29.42% -29.65% -82.85% 11.00% 8.93% 16.56% 35.39% 53.77% 40.25%
covered payroll
Plan fiduciary net position as a percentage 107.02% 106.73% 120.29% 97.22% 97.77% 95.77% 90.97% 85.82% 89.20%
of the total pension liability
LEOFF 1 2023 2022 2021 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension 0.093198% 0.093826% 0.095644% 0.096208% 0.097999% 0.101761% 0.102451% 0.101574% 0.103718%
liability(asset)
Employer's proportionate share of the net $ (2,766,139) $ (2,691,505) $ (3,276,345) $ (1,816,897) $ (1,937,059) $ (1,847,473) $ (1,554,407) $(1,046,503) $ (1,250,031)
pension liability(asset)
State's proportionate share of the net
pension liability(asset)associated with the $(18,710,096) $(18,205,272) $ (22,161,113) $(12,289,444) $ (13,102,219) $(12,496,261) $ (10,513,971) $(7,078,518) $ (8,455,179)
employer
Total $(21,476,235) $(20,896,777) $(25,437,458) $ (14,106,341) $(15,039,278) $(14,343,734) $(12,068,378) $ (8,125,021) $(9,705,210)
Plan fiduciary net position as a percentage 175.99% 169.62% 187.45% 146.88% 148.78% 144.42% 136.00% 123.74% 127.36%
of the total pension liability
LEOFF 2 2023 2022 2021 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension 0.352947% 0.367227% 0.379530% 0.374857% 0.394720% 0.403472% 0.370954% 0.359661% 0.354511%
liability(asset)
Employer's proportionate share of the net $ (8,465,780) $ (9,980,121) $(22,044,674) $ (7,646,536) $ (9,144,451) $ (8,191,361) $ (5,147,640) $(2,091,896) $ (2,193,486)
pension liability(asset)
State's proportionate share of the net
pension liability(asset)associated with the $ (5,406,160) $ (6,464,905) $ (14,221,221) $ (4,889,380) $ (5,988,390) $ (5,303,752) $ (3,339,178) $(1,363,764) $ (1,450,178)
employer
Total $ (13,871,939) $(16,445,026) $(36,265,895) $(12,535,916) $ (15,132,841) $ (13,495,113) $ (8,486,818) $(3,455,660) $(3,643,664)
Covered payroll $ 15,280,857 $ 14,631,934 $ 14,178,478 $ 13,661,010 $ 13,248,982 $ 12,697,917 $ 11,623,292 $10,953,667 $10,336,409
Employer's proportionate share of the net
pension liability as a percentage of its -55.40% -68.21% -155.48% -55.97% -69.02% -64.51% -44.29% -19.10% -21.22%
covered payroll
Plan fiduciary net position as a percentage 113.17% 116.09% 142.00% 115.83% 119.43% 118.50% 113.40% 106.04% 111.67%
of the total pension liability
119
City of Auburn: 2023 Annual Comprehensive Financial Report Required Supplemental Information
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2023
Last 10 Fiscal Years*
The City implemented GASB Statement No. 68 in fiscal year 2015. Information is not available for prior years. The
schedule will be built prospectively until it contains ten years of data.
Notes to Schedule:
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 9.
Contribution and covered payroll on this schedule is based on the plan fiscal year—July 1 —June 30.
The LEOFF 1 plan is closed and has no further covered payroll.
120
City of Auburn: 2023 Annual Comprehensive Financial Report Required Supplemental Information
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Employer Contributions
As of December 31, 2023
Last 10 Fiscal Years''`
PERS 1 2023 2022 2021 2020 2019 2018 2017 2016 2015
Statutorily or contractually required
contributions $ 1,129,900 $ 1,121,072 $ 1,205,178 $ 1,318,974 $ 1,310,731 $ 1,296,482 $ 1,216,069 $ 1,132,885 $ 1,001,824
Contributions in relation to the statutorily or
contractually required contributions $ (1,129.900) $ (1,121,072) $ (1,205,178) $ (1,318,974) $ (1,310,731) $ (1,296,482) $ (1,216,069) $ (1,132,885) $ (1,001,824)
Covered payroll $33,127,194 $29,838,946 $28,098,202 $26,726,280 $26,516,814 $25,212,705 $24,538,921 $23,510,382 $22,436,909
Contributions as a percentage of covered payroll 3.41% 3.76% 4.29% 4.94% 4.94% 5.14% 4.96% 4.82% 4.47%
PERS 2/3 2023 2022 2021 2020 2019 2018 2017 2016 2015
Statutorily or contractually required
contributions $ 2,102,089 $ 1,897,746 $ 2,005,971 $ 2,121,829 $ 2,047,116 $ 1,941,592 $ 1,714,887 $ 1,495,562 $ 1,286,928
Contributions in relation to the statutorily or
contractually required contributions $ (2,102,089) $ (1,897,746) $ (2,005,971) $ (2,121,829) $ (2,047,116) $ (1,941,592) $ (1,714,887) $ (1,495,562) $ (1,286,928)
Covered payroll $33,127,194 $29,838,946 $28,098,202 $26,726,280 $26,516,814 $25,087,758 $24,350,435 $23,330,702 $22,130,501
Contributions as a percentage of covered payroll 6.35% 6.36% 7.14% 7.94% 7.72% 7.74% 7.04% 6.41% 5.82%
LEOFF 2 2023 2022 2021 2020 2019 2018 2017 2016 2015
Statutorily or contractually required
contributions $ 804,151 $ 782,428 $ 756,576 $ 737,023 $ 730,140 $ 708,333 $ 639,662 $ 594,665 $ 551,812
Contributions in relation to the statutorily or $ (804,151) $ (782,428) $ (756,576) $ (737,023) $ (730,140) $ (708,333) $ (639,662) $ (594,665) $ (551,812)
contractually required contributions
Covered payroll $15,429,942 $ 15,020,410 $ 14,315,013 $13,852,684 $13,597,937 $13,044,797 $ 11,992,821 $ 11,370,216 $10,553,437
Contributions as a percentage of covered payroll 5.21% 5.21% 5.29% 5.32% 5.37% 5.43% 5.33% 5.23% 5.23%
The City implemented GASB Statement No. 68 in fiscal year 2015. Information is not available for prior years. The
schedule will be built prospectively until it contains ten years of data.
Note to Schedule:
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 9.
121
City of Auburn: 2023 Annual Comprehensive Financial Report Required Supplemental Information
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Total Pension Liability& Related Ratios
Fire Relief and Pension Plan
Last 10 Fiscal Years
Fiscal Year Ending December 31
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Total Pension Liability-Beginning $ 2,498,278 $ 3,049,730 $ 3,562,986 $ 3,452,448 $ 2,973,304 $ 3,212,435 $ 3,218,004 N/A N/A N/A
Service Cost - - - - - - - N/A N/A N/A
Interest on Total Pension Liability 89,534 59,120 69,409 91,863 114,553 108,873 116,957 N/A N/A N/A
Effect of Plan Changes - - - - - - - N/A N/A N/A
Effect of Economic/Demographic Gains(Losses) 373,785 - (534,707) - 208,957 - - N/A N/A N/A
Effect of Assumption Changes or Inputs 177,785 (422,100) 138,062 244,126 376,773 (142,719) 77,612 N/A N/A N/A
Benefit Payments (223,425) (188,472) (186,020) (225,451) (221,139) (205,285) (200,138) N/A N/A N/A
Net Change in Total Pension Liability 417,679 (551,452) (513,256) 110,538 479,144 (239,131) (5,569) N/A N/A N/A
Total Pension Liability-Ending $ 2,915,957 $ 2,498,278 $ 3,049,730 $ 3,562,986 $ 3,452,448 $ 2,973,304 $ 3,212,435 N/A N/A N/A
Covered Employee Payroll $ - $ - $ - $ - $ - $ - $ - N/A N/A N/A
Total Pension Liability as a%of Covered
Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
The City implemented GASB Statement No. 73 in fiscal year 2017. Information is not available for prior years. The
schedule will be built prospectively until it contains ten years of data.
Notes to Schedule:
No assets have been accumulated in a trust that meets the criteria of a qualified plan.
The effect of assumption changes or inputs is the result of a change in the discount rate from 3.75% as of December 31,
2022 to 3.25% as of December 31, 2023.
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 9.
122
City of Auburn: 2023 Annual Comprehensive Financial Report Required Supplemental Information
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Total OPEB Liability and Related Ratios
Firemen's Relief and Pension Plan and LEOFF 1 Employees
For the Year Ended December 31
Last 10 Fiscal Years*
Fiscal Year Ending December 31
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Total OPEB Liability-Beginning $ 10,956,157 $ 13,370,311 $ 14,784,873 $ 13,702,359 $ 16,228,865 $ 17,472,360 N/A N/A N/A N/A
Service Cost - • N/A N/A N/A N/A
Interest on Total OPEB Liability 402,400 261,571 290,093 368,593 636,891 597,724 N/A N/A N/A N/A
Changes of Benefit Terms • N/A N/A N/A N/A
Effect of Economic/Demographic Gains(Losses) (1,969,219) - (704,125) - (3,427,650) - N/A N/A N/A N/A
Effect of Assumption Changes or Inputs 373,161 (2,089,347) (437,389) 1,315,995 883,507 (1,045,269) N/A N/A N/A N/A
Expected Benefit Payments (455,156) (586,378) (563,141) (602,074) (619,254) (795,950) N/A N/A N/A N/A
Total OPEB Liability-Ending $ 9,307,343 $ 10,956,157 $ 13,370,311 $ 14,784,873 $ 13,702,359 $ 16,228,865 N/A N/A N/A N/A
Covered Employee Payroll •
•
• N/A N/A N/A N/A
Total OPEB Liability as a%of Covered Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
The City implemented GASB Statement No. 75 in fiscal year 2018. Information is not available for prior years. The
schedule will be built prospectively until it contains ten years of data.
Notes to Schedule:
No assets have been accumulated in a trust that meets the criteria in paragraph 4 of GASB 75 to pay related benefits.
The effect of assumption changes or inputs is the result of a change in the discount rate from 3.75% as of December 31,
2022 to 3.25% as of December 31, 2023.
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 10.
123
City of Auburn: 2023 Annual Comprehensive Financial Report Required Supplemental Information
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124
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
NON-MAJOR GOVERNMENTAL FUNDS
The City has four types of Non-Major Governmental Funds.
Special Revenue Funds
Special revenue funds account for the proceeds of specific revenue sources and are segregated into
individual funds to ensure that expenditures are made exclusively for qualified purposes. Special
revenue funds are accounted for on a modified accrual basis. Biennial budgets are adopted with
appropriations lapsing at year-end.
Debt Service Funds
Debt service funds account for payments of principal and interest on general obligation and special
assessment long-term debt.
Capital Project Funds
Capital project funds account for the City of Auburn's financial resources used for the acquisition or
construction of major non-proprietary capital facilities.
Permanent Funds
Permanent funds are used to report resources that are legally restricted to the extent that only
earnings, and not principal, may be used for purposes that support City programs that are for the
benefit of the City or its citizens.
125
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENT FUNDS
For the Year Ended December 31,2023
Total Nonmajor
Special Debt Capital Governmental
Revenue Service Projects Permanent Funds
ASSETS:
Cash and Cash Equivalents $ 29,487,411 $ 468,051 $1,998,948 $2,390,209 $ 34,344,619
Receivables:
Taxes 442,154 - - - 442,154
Customer Accounts 123,468 - - - 123,468
Other Receivables 41,701 - 10,812 - 52,513
Due From Other Governmental Units 731,027 15,865 74,805 - 821,697
Long-Term Notes and Contracts - - 2,176,333 - 2,176,333
Total Assets 30,825,760 483,916 4,260,897 2,390,209 37,960,783
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 240,947 - 49,596 - 290,542
Interfund Payable 450,000 - - - 450,000
Total Liabilities 690,947 - 49,596 - 740,542
Deferred Inflow of Resources:
Deferred Inflows Related to Leases - - 2,136,081 - 2,136,081
Total Deferred Inflow of Resources - - 2,136,081 - 2,136,081
Fund Balance:
Nonspendable - - - 2,151,308 2,151,308
Restricted 17,926,724 - - - 17,926,724
Committed 11,778,743 - - - 11,778,743
Assigned 429,347 483,916 2,075,221 238,902 3,227,386
Total Fund Balance 30,134,814 483,916 2,075,221 2,390,209 35,084,160
Total Liabilities, Deferred Inflows And Fund Balances $30,825,760 $ 483,916 $4,260,897 $2,390,209 $ 37,960,783
126
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENT FUNDS
For the Year Ended December 31, 2023
Special Debt Capital Total Nonmajor
Revenue Service Projects Permanent Governmental
REVENUES:
Taxes:
Excise $ 183,262 $ - $ - $ - $ 183,262
Interfund Utility 1,753,189 - - - 1,753,189
Property - - 317,749 - 317,749
Retail Sales &Use 2,413,730 250,000 - - 2,663,730
Utility 1,944,382 - - - 1,944,382
Charges for Services 1,852,209 - 5,219 80,637 1,938,065
Fines and Forfeitures 155,692 - - - 155,692
Intergovernmental 778,161 - 74,805 - 852,965
Investment Earnings 1,263,404 23,770 110,166 108,267 1,505,608
Miscellaneous - - 148,539 - 148,539
Total Revenues 10,344,028 273,770 656,478 188,904 11,463,180
EXPENDITURES:
Current:
Culture and Recreation - - 294 - 294
Economic Environment 964,733 - - - 964,733
Security of Persons and Property 418,819 - - - 418,819
Transportation 1,944,329 - - - 1,944,329
Debt Service:
Principal - 1,122,733 - - 1,122,733
Interest and Other Costs - 755,232 - - 755,232
Capital Outlay - - 740,165 - 740,165
Total Expenditures 3,327,881 1,877,965 740,459 - 5,946,305
Excess (Deficiency) of Revenues Over (Under)
Expenditures 7,016,147 (1,604,194) (83,981) 188,904 5,516,875
OTHER FINANCING SOURCES (USES):
Insurance Recoveries - - 228,154 - 228,154
Transfers In (Note 4) 343,692 1,628,015 288,497 - 2,260,204
Transfers Out (Note 4) (1,828,410) (1,769) - - (1,830,179)
Total Other Financing Sources (Uses) (1,484,718) 1,626,246 516,651 - 658,179
Net Change in Fund Balance 5,531,429 22,052 432,669 188,904 6,175,054
Fund Balance- Beginning 24,603,385 461,865 1,642,552 2,201,305 28,909,107
Fund Balance- Ending $ 30,134,814 $ 483,916 $ 2,075,221 $ 2,390,209 $ 35,084,160
127
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
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128
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds account for the proceeds of specific revenue sources and are segregated
into individual funds to ensure that expenditures are made exclusively for qualified purposes.
Special revenue funds are accounted for on a modified accrual basis. Annual budgets are adopted
with appropriations lapsing each year of the biennium. The City has eight non-major special
revenue funds.
Arterial Street Preservation Fund
This fund was created to repair classified arterial streets and is funded from a one percent utility
tax increase that was adopted by Council in 2008.
The Business Improvement Area Fund
Accounts for special assessments on downtown merchants for ongoing services and for
improvements made to the downtown area.
Drug Forfeiture Fund
Money seized and forfeited from drug activity is deposited in this fund to be used exclusively for
drug investigation and enforcement.
Hotel/Motel Tax Fund
This fund was created to account for the hotel/motel taxes levied to support City tourist
promotion.
The Housing and Community Development Fund
Accounts for projects associated with the Community Development Block Grant program.
The Local Street Fund
This fund was created when Auburn voters approved the Save Our Streets lid lift in 2004 and is
used to account for all revenues and expenditures related to this initiative.
Mitigation Fees
Accounts for the receipt of contracted mitigation fees for streets and fire service.
The Recreational Trails Fund
Created for the purpose of trail development. This is a tax-supported fund.
129
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
For the Year Ended December 31,2023
Page 1 of 2
Business Housing and
Arterial Street Improvement Drug Hotel/Motel Community
Preservation Area Forfeiture Tax Development
ASSETS:
Cash and Cash Equivalents $ 5,464,088 $ - $ 985,758 $ 508,993 $ 15,380
Receivables:
Taxes - - - - -
Customer Accounts 114,726 - 38 - -
Other Receivables 41,701 - - - -
Due From Other Governmental Units 220,791 - 14,778 - 495,458
Total Assets 5,841,306 - 1,000,573 508,993 510,838
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 68,285 - 41,207 2,413 17,934
Interfund Payable - - - - 450,000
Total Liabilities 68,285 - 41,207 2,413 467,934
Fund Balance:
Restricted 100,855 - 908,127 506,580 42,904
Committed 5,453,137 - - - -
Assigned 219,029 - 51,239 - -
Total Fund Balance 5,773,021 - 959,366 506,580 42,904
Total Liabilities,Deferred Inflows And Fund Balances $ 5,841,306 $ - $ 1,000,573 $ 508,993 $ 510,838
130
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
Page 2 of 2
Total Nonmajor
Local Mitigation Recreation Special Revenue
Street Fees Trails Funds
$ 6,022,597 $ 16,381,574 $ 109,020 $ 29,487,411
442,154 - - 442,154
8,704 - - 123,468
41,701
731,027
6,473,456 16,381,574 109,020 30,825,760
100,999 10,109 - 240,947
450,000
100,999 10,109 - 690,947
16,264,090 104,169 17,926,724
6,325,605 - - 11,778,743
46,852 107,376 4,851 429,347
6,372,457 16,371,466 109,020 30,134,814
$ 6,473,456 $ 16,381,574 $ 109,020 $ 30,825,760
131
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR SPECIAL REVENUE FUNDS
For the Year Ended December 31, 2023
Page 1 of 2
Business Housing and
Arterial Street Improvement Drug Hotel/Motel Community
Preservation Area Forfeiture Tax Development
REVENUES:
Taxes:
Excise $ - $ - $ - $ 183,262 $ -
Interfund Utility 771,053 - - - -
Retail Sales & Use 2,413,730 - - - -
Utility 176,735 - - - -
Charges for Services 219,245 - 28,902 - -
Fines and Forfeitures - - 155,692 - -
Intergovernmental 100,855 - 5,337 - 664,968
Investment Earnings 219,029 - 51,239 22,842 -
Total Revenues 3,900,646 - 241,171 206,104 664,968
EXPENDITURES:
Current:
Economic Environment - 135,941 - 163,823 664,968
Security of Persons and Property - - 418,819 - -
Transportation 1,640,564 - - - -
Total Expenditures 1,640,564 135,941 418,819 163,823 664,968
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,260,082 (135,941) (177,648) 42,281 -
OTHER FINANCING SOURCES (USES):
Transfers In (Note 4) - - - - -
Transfers Out (Note 4) - - - - -
Total Other Financing Sources (Uses) - - - - -
Net Change in Fund Balance 2,260,082 (135,941) (177,648) 42,281 -
Fund Balance- Beginning 3,512,939 135,941 1,137,015 464,299 42,904
Fund Balance- Ending $ 5,773,021 $ - $959,366 $ 506,580 $ 42,904
132
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
Page 2 of 2
Total Non-Major
Local Mitigation Recreation Special Revenue
Street Fees Trails Funds
$ - $ - $ - $ 183,262
982,136 - - 1,753,189
- -
2,413,730
1,767,646 - - 1,944,382
8,704 1,595,358 - 1,852,209
155,692
- -
7,000 778,161
210,547 754,896 4,851 1,263,404
2,969,034 2,350,253 11,851 10,344,028
964,733
- - -
418,819
303,765 - - 1,944,329
303,765 - - 3,327,881
2,665,269 2,350,253 11,851 7,016,147
343,692 - - 343,692
- (1,828,410) - (1,828,410)
343,692 (1,828,410) - (1,484,718)
3,008,961 521,843 11,851 5,531,429
3,363,496 15,849,622 97,169 24,603,385
$6,372,457 $16,371,466 $109,020 $ 30,134,814
133
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
ARTERIAL STREET PRESERVATION FUND
For the Year Ended December 31 ,2023
Budget Amounts
Variance with Final
Final Budget Positive
Original Adopted Actual Results (Negative)
REVENUES:
Taxes:
Interfund Utility $ 1,287,500 $1,287,500 $ 771,053 $ (516,447)
Retail Sales &Use 1,600,000 1,974,500 2,413,730 439,230
Utility - - 176,735 176,735
Charges for Services 14,000 640,665 219,245 (421,420)
Intergovernmental 1,118,272 2,293,948 100,855 (2,193,093)
Investment Earnings 22,000 122,000 219,029 97,029
Total Revenues 4,041,772 6,318,613 3,900,646 (2,417,967)
EXPENDITURES:
Current:
Transportation 4,100,000 8,751,951 1,640,564 7,111,387
Total Expenditures 4,100,000 8,751,951 1,640,564 7,111,387
Excess (Deficiency) of Revenues Over (Under)
Expenditures (58,228) (2,433,338) 2,260,082 4,693,420
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 4) - (185,000) - 185,000
Total Other Financing Sources or Uses - (185,000) - 185,000
Net Change in Fund Balance (58,228) (2,618,338) 2,260,082 4,878,420
Fund Balance- Beginning 2,699,358 3,512,939 3,512,939 -
Fund Balance- Ending $ 2,641,130 $ 894,601 $ 5,773,021 $ 4,878,420
134
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
BUSINESS IMPROVEMENT AREA FUND
For the Year Ended December 31 ,2023
Budget Amounts
Variance with Final
Final Actual Budget Positive
Original Adopted Results (Negative)
REVENUES:
EXPENDITURES:
Current:
Economic Environment $ 90,000 $ 135,941 $135,941 $ -
Total Expenditures 90,000 135,941 135,941 -
Excess (Deficiency) of Revenues Over (Under)
Expenditures (90,000) (135,941) (135,941) -
Net Change in Fund Balance (90,000) (135,941) (135,941) -
Fund Balance- Beginning 97,502 135,941 135,941 -
Fund Balance- Ending $ 7,502 $ - $ - $ -
135
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
DRUG FORFEITURE FUND
For the Year Ended December 31 ,2023
Budget Amounts
Variance with Final
Final Actual Budget Positive
Original Adopted Results (Negative)
REVENUES:
Charges for Services $ 18,000 $ 18,000 $ 28,902 $ 10,902
Fines and Forfeitures 125,000 125,000 155,692 30,692
Intergovernmental - - 5,337 5,337
Investment Earnings 5,000 5,000 51,239 46,239
Total Revenues 148,000 148,000 241,171 93,171
EXPENDITURES:
Current:
Security of Persons and Property 392,671 462,671 418,819 43,852
Total Expenditures 392,671 462,671 418,819 43,852
Excess (Deficiency) of Revenues Over (Under)
Expenditures (244,671) (314,671) (177,648) 137,023
OTHER FINANCING SOURCES (USES):
Net Change in Fund Balance (244,671) (314,671) (177,648) 137,023
Fund Balance- Beginning 857,236 1,137,015 1,137,015 -
Fund Balance- Ending $ 612,565 $ 822,344 $ 959,366 $ 137,022
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City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
HOTEL/MOTEL TAX FUND
For the Year Ended December 31 ,2023
Budget Amounts
Variance with Final
Final Actual Budget Positive
Original Adopted Results (Negative)
REVENUES:
Taxes:
Excise $ 140,000 $ 140,000 $ 183,262 $ 43,262
Charges for Services 2,500 2,500 - (2,500)
Investment Earnings 1,400 1,400 22,842 21,442
Total Revenues 143,900 143,900 206,104 62,204
EXPENDITURES:
Current:
Economic Environment 177,100 177,100 163,823 13,277
Total Expenditures 177,100 177,100 163,823 13,277
Excess (Deficiency) of Revenues Over (Under)
Expenditures (33,200) (33,200) 42,281 75,481
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 4) - (8,000) - 8,000
Total Other Financing Sources or Uses - (8,000) - 8,000
Net Change in Fund Balance (33,200) (41,200) 42,281 83,481
Fund Balance- Beginning 480,179 464,299 464,299 -
Fund Balance- Ending $ 446,979 $ 423,099 $ 506,580 $ 83,481
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City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn, Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
HOUSING & COMMMUNITY DEVELOPMENT FUND
For the Year Ended December 31 ,2023
Budget Amounts
Variance with Final
Final Actual Budget Positive
Original Adopted Results (Negative)
REVENUES:
Intergovernmental $ 650,000 $1,016,330 $ 664,968 $ (351,362)
Total Revenues 650,000 1,016,330 664,968 (351,362)
EXPENDITURES:
Current:
Economic Environment 650,000 1,016,330 664,968 351,362
Total Expenditures 650,000 1,016,330 664,968 351,362
Excess (Deficiency) of Revenues Over (Under)
Expenditures _ _ _ _
OTHER FINANCING SOURCES (USES):
Net Change in Fund Balance - - - -
Fund Balance - Beginning 42,842 42,904 42,904 -
Fund Balance- Ending $ 42,842 $ 42,904 $ 42,904 $ -
138
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
LOCAL STREET FUND
For the Year Ended December 31,2023
Budget Amounts
Variance with Final
Final Actual Budget Positive
Original Adopted Results (Negative)
REVENUES:
Taxes:
Interfund Utility $ 858,300 $ 858,300 $ 982,136 $ 123,836
Utility 1,488,900 1,488,900 1,767,646 278,746
Charges for Services - - 8,704 8,704
Investment Earnings 15,800 15,800 210,547 194,747
Total Revenues 2,363,000 2,363,000 2,969,034 606,034
EXPENDITURES:
Current:
Transportation 2,036,300 4,146,961 303,765 3,843,196
Total Expenditures 2,036,300 4,146,961 303,765 3,843,196
Excess (Deficiency) of Revenues Over (Under)
Expenditures 326,700 (1,783,961) 2,665,269 4,449,230
OTHER FINANCING SOURCES (USES):
Transfers In (Note 4) 235,000 1,411,108 343,692 (1,067,416)
Total Other Financing Sources or Uses 235,000 1,411,108 343,692 (1,067,416)
Net Change in Fund Balance 561,700 (372,853) 3,008,961 3,381,814
Fund Balance- Beginning 1,932,689 3,363,496 3,363,496 -
Fund Balance- Ending $ 2,494,389 $ 2,990,643 $6,372,457 $ 3,381,814
139
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
MITIGATION FEES FUND
For the Year Ended December 31 ,2023
Budget Amounts
Variance with Final
Final Actual Budget Positive
Original Adopted Results (Negative)
REVENUES:
Charges for Services $ 1,580,000 $ 1,580,000 $ 1,595,358 $ 15,358
Investment Earnings 21,200 21,200 754,896 733,696
Total Revenues 1,601,200 1,601,200 2,350,253 749,053
EXPENDITURES:
Current:
Security of Persons and Property 75,000 75,000 - 75,000
Total Expenditures 75,000 75,000 - 75,000
Excess (Deficiency) of Revenues Over (Under)
Expenditures 1,526,200 1,526,200 2,350,253 824,053
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 4) (6,968,982) (11,369,880) (1,828,410) 9,541,470
Total Other Financing Sources or Uses (6,968,982) (11,369,880) (1,828,410) 9,541,470
Net Change in Fund Balance (5,442,782) (9,843,680) 521,843 10,365,523
Fund Balance-Beginning 10,976,167 15,849,622 15,849,622 -
Fund Balance- Ending $ 5,533,385 $6,005,942 $16,371,466 $ 10,365,524
140
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
RECREATIONAL TRAILS FUND
For the Year Ended December 31,2023
Budget Amounts
Variance with Final
Final Actual Budget Positive
Original Adopted Results (Negative)
REVENUES:
Intergovernmental $ 7,000 $ 7,000 $ 7,000 $ -
Investment Earnings 100 100 4,851 4,751
Total Revenues 7,100 7,100 11,851 4,751
EXPENDITURES:
Excess (Deficiency) of Revenues Over (Under)
Expenditures 7,100 7,100 11,851 4,751
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 4) - (66,210) - 66,210
Total Other Financing Sources or Uses - (66,210) - 66,210
Net Change in Fund Balance 7,100 (59,110) 11,851 70,961
Fund Balance- Beginning 95,845 97,169 97,169 -
Fund Balance- Ending $ 102,945 $ 38,059 $109,020 $ 70,961
141
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City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
NON-MAJOR GOVERNMENTAL FUNDS
DEBT SERVICE FUNDS
Debt service funds account for payments of principal and interest on general obligation and special
assessment long-term debt. The City of Auburn has two outstanding general obligation issues, and
two special assessment funds.
The 2016 General Obligation Bonds
Accounts for the debt service on a Council-approved bond issue to refund on a current basis the
2005 General Obligation Refunding Airport Bonds and refunding on an advance basis the 2006A
General Obligation Bonds for Golf and Cemetery.
2020 A Series and B Series Refunding General Obligation Bonds
The 2020 A Series accounts for the debt service on the refund of the 2010 B Series General
Obligation Bonds which was to finance acquisition costs of certain condominium units in the City
Hall Annex. The 2020 B Series accounts for the debt service on the refund of the 2010 D Series
General Obligation Bonds which was to finance a portion of the downtown infrastructure
improvements in the City's revitalization area.
Special Assessment Debt Fund
Accounts for the special assessment collections and debt service payments for all local improvement
districts located within the City.
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City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR DEBT SERVICE FUNDS
For the Year Ended December 31,2023
2016 Combined 2020 Bonds& LID Total Nonmajor
Refunding Refunding(2010B(S,D) Guarantee Debt Service Funds
ASSETS:
Cash and Cash Equivalents $ - $ 468,051 $ - $ 468,051
Due From Other Governmental Units - 15,865 - 15,865
Total Assets - 483,916 - 483,916
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Fund Balance:
Assigned - 483,916 - 483,916
Total Fund Balance - 483,916 - 483,916
Total Liabilities,Deferred Inflows And Fund Balances $ - $ 483,916 $ - $ 483,916
144
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR DEBT SERVICE FUNDS
For the Year Ended December 31, 2023
2020 Bonds & Total Non-Major
2016 Combined Refunding LID Debt Service
Refunding (2010B&D) Guarantee Funds
REVENUES:
Taxes:
Retail Sales& Use $ - $ 250,000 $ - $ 250,000
Investment Earnings - 23,703 67 23,770
Total Revenues - 273,703 67 273,770
EXPENDITURES:
Debt Service:
Principal 352,733 770,000 - 1,122,733
Interest and Other Costs 17,732 737,500 - 755,232
Total Expenditures 370,465 1,507,500 - 1,877,965
Excess (Deficiency) of Revenues Over(Under) Expenditures (370,465) (1,233,797) 67 (1,604,194)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 4) 370,465 1,257,550 - 1,628,015
Transfers Out (Note 4) - - (1,769) (1,769)
Total Other Financing Sources (Uses) 370,465 1,257,550 (1,769) 1,626,246
Net Change in Fund Balance - 23,753 (1,702) 22,052
Fund Balance- Beginning - 460,163 1,702 461,865
Fund Balance- Ending $ - $ 483,916 $ - $ 483,916
145
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City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
NON-MAJOR GOVERNMENTAL FUNDS
CAPITAL PROJECT FUNDS
Capital projects funds account for the City of Auburn's financial resources used for the acquisition or
construction of major non-proprietary capital facilities. Auburn has two non-major capital project
funds.
The Municipal Park Construction Fund
Accounts for park related construction activity and includes funding from a portion of field rental
income and adult athletic team fees.
The Local Revitalization Fund
Accounts for the City Hall Plaza and the Downtown Promenade project.
147
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR CAPITAL PROJECTS FUNDS
For the Year Ended December 31,2023
Local Parks Total Nonmajor
Revitalization Construction Capital Projects Funds
ASSETS:
Cash and Cash Equivalents $ 489,555 $ 1,509,393 $ 1,998,948
Receivables:
Other Receivables - 10,812 10,812
Due From Other Governmental Units - 74,805 74,805
Long-Term Notes and Contracts - 2,176,333 2,176,333
Total Assets 489,555 3,771,342 4,260,897
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 3,629 45,967 49,596
Total Liabilities 3,629 45,967 49,596
Deferred Inflow of Resources:
Deferred Inflows Related to Leases - 2,136,081 2,136,081
Total Deferred Inflow of Resources - 2,136,081 2,136,081
Fund Balance:
Assigned 485,926 1,589,295 2,075,221
Total Fund Balance 485,926 1,589,295 2,075,221
Total Liabilities, Deferred Inflows And Fund Balances $ 489,555 $ 3,771,342 $ 4,260,897
148
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR CAPITAL PROJECTS FUNDS
For the Year Ended December 31, 2023
Total Non-Major
Local Parks Capital Projects
Revitalization Construction Funds
REVENUES:
Taxes:
Property $ - $ 317,749 $ 317,749
Charges for Services - 5,219 5,219
Intergovernmental - 74,805 74,805
Investment Earnings 19,466 90,700 110,166
Miscellaneous - 148,539 148,539
Total Revenues 19,466 637,012 656,478
EXPENDITURES:
Current:
Culture and Recreation - 294 294
Capital Outlay 72,701 667,464 740,165
Total Expenditures 72,701 667,758 740,459
Excess (Deficiency) of Revenues Over (Under) Expenditures (53,235) (30,746) (83,981)
OTHER FINANCING SOURCES (USES):
Insurance Recoveries 228,154 - 228,154
Transfers In (Note 4) 38,189 250,308 288,497
Total Other Financing Sources (Uses) 266,342 250,308 516,651
Net Change in Fund Balance 213,108 219,562 432,669
Fund Balance - Beginning 272,819 1,369,733 1,642,552
Fund Balance - Ending $ 485,926 $1,589,295 $ 2,075,221
149
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City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
NON-MAJOR GOVERNMENTAL FUNDS
PERMANENT FUNDS
Permanent funds are used to report resources that are legally restricted to the extent that only
earnings, and not principal, may be used for purposes that support City programs that are for the
benefit of the City or its citizens. Auburn has one permanent fund.
The Cemetery Endowed Care Fund
Accounts for non-expendable investments held by the City's trustee. The interest income from
investments is available for use by the cemetery fund for capital enhancement and maintenance.
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City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR PERMANENT FUNDS
For the Year Ended December 31, 2023
Cemetery Endowment Care
ASSETS:
Cash and Cash Equivalents $ 2,390,209
Total Assets 2,390,209
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Fund Balance:
Nonspendable 2,151,308
Assigned 238,902
Total Fund Balance 2,390,209
Total Liabilities, Deferred Inflows And Fund Balances $ 2,390,209
152
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn.Washington
COMBINING STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES
NON-MAJOR PERMANENT FUNDS
For the Year Ended December 31. 2023
Cemetery
Endowment Care
REVENUES:
Charges for Services $ 80.637
Investment Earnings 108.267
Total Revenues 188.904
EXPENDITURES:
Excess(Deficiency) of Revenues Over(Under) Expenditures 188,904
Net Change in Fund Balance 188.904
Fund Balance- Beginning 2.201.305
Fund Balance- Ending $ 2.390,209
153
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City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
NON-MAJOR PROPRIETARY FUNDS
ENTERPRISE FUNDS
The City's enterprise funds are used to account for operations that are financed and operated in a
manner similar to private business operations. The goods and services these funds provide to the
general public are primarily financed by service charges. Enterprise funds are self-supporting and
use the accrual method of accounting. Auburn has one non-major enterprise funds.
The Cemetery Fund
Accounts for Mountain View Cemetery's operations.
155
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
December 31, 2023
Cemetery
ASSETS:
Current Assets
Cash and Cash Equivalents $ 1,831,158
Inventories 8,119
Total Current Assets 1,839,277
Noncurrent Assets
Net Pension Asset 213,825
Capital Assets Not Being Depreciated:
Land 342,836
Construction in Progress 91,462
Total Capital Assets Not Being Depreciated 434,297
Capital Assets Being Depreciated:
Buildings and Equipment 997,334
Improvements Other Than Buildings 1,558,172
Accumulated Depreciation (1,732,465)
Total Capital Assets Being Depreciated 823,040
Total Noncurrent Asset 1,471,163
Total Assets 3,310,440
DEFERRED OUTFLOW OF RESOURCES:
Deferred Outflow Related to Pensions 144,202
Total Deferred Outflow Of Resources 144,202
LIABILITIES:
Current Liabilities
Current Payables 72,962
Employee Leave Benefits 30,756
Total Current Liabilities 103,718
Noncurrent Liabilities:
Employee Leave Benefits 10,419
Total Noncurrent Liabilities 10,419
Total Liabilities 114,137
DEFERRED IN FLOW OF RESOURCES:
Deferred Inflow related to Pensions 204,736
Total Deferred Inflow Of Resources 204,736
NET POSITION:
Net Investment in Capital Assets 1,257,338
Restricted:
Pension 213,825
Unrestricted 1,664,606
Total Net Position $ 3,135,769
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City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2023
Cemetery
OPERATING REVENUES:
Charges for Services $ 1,974,568
Total Operating Revenues 1,974,568
OPERATING EXPENSES:
Administration 622,629
Depreciation /Amortization 35,462
Operations & Maintenance 1,108,967
Other Operating Expenses 26,012
Total Operating Expenses 1,793,070
Operating Income or Loss 181,498
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 89,984
Other Non-Operating Revenue 810
Total Non-Operating Revenue (Expense) 90,794
Income (Loss) Before Contributions and Transfers 272,292
CONTRIBUTIONS & TRANSFERS:
Transfers Out (Note 4) (163,265)
Total Contributions &Transfers (163,265)
Change in Net Position 109,027
Net Position - Beginning 3,026,742
Net Position - Ending $ 3,135,769
157
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended December 31, 2023
Pagel of 2
Cemetery
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users $ 1,974,568
Cash Paid to Suppliers for Goods & Services (912,159)
Cash Paid to Employees (817,387)
Other Non-Operating Revenue 810
Net Cash Provided (Used) By Operating Activities 245,833
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers Out (163,265)
Net Cash Provided (Used) by Non-Capital Financing Activities (163,265)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Purchase of Capital Assets (50,627)
Net Cash Provided (Used) for Capital and Related Financing Activities (50,627)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 89,984
Net Cash Provided (Used) in Investing Activities 89,984
Net Increase (Decrease) in Cash and Cash Equivalents 121,925
Cash and Cash Equivalents - Beginning of Year 1,709,233
Cash and Cash Equivalents - End of Year $ 1,831,158
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 1,831,158
Total Cash $ 1,831,158
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City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended December 31, 2023
Page 2 of 2
Cemetery
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss) $ 181,498
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 35,462
Other Non-Operating Revenue 810
Inventory 1,965
Liability Increases (Decreases):
Accounts &Vouchers Payable 17,355
Compensated Absences Payable 8,743
Total Adjustments 64,335
Net Cash Provided (Used) by Operating Activities $ 245,833
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Total Non Cash Investing, Capital and Financing Activities $ -
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City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
NON-MAJOR PROPRIETARY FUNDS
INTERNAL SERVICE FUNDS
The City of Auburn's internal service funds are used to account for the financing of goods and
services provided by one department of operation to other departments on a cost reimbursement
basis. Internal service funds are self-supporting and use the accrual method of accounting. Auburn
has five internal service funds.
The Insurance Fund
Provides a source of funds to pay unemployment claims and property and casualty claims which
fall below deductible levels.
The Workers Comp Self Insurance Fund
Provides a source of funds to pay time loss and medical benefits for employees who are affected
by an occupational injury or illness.
The Facilities Funds
Accounts for the costs of maintaining various City facilities.
The Information Services Fund
Accounts for the costs of purchasing and maintaining the City's various computer and
telecommunications systems.
The Equipment Rental Fund
Accounts for the costs of purchasing, maintaining, and operating Auburn's fleet of vehicles and
related equipment.
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City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31,2023
Insurance Workers Comp Self Facilities Information Equipment Total
Insurance Services Rental
ASSETS:
Current Assets
Cash and Cash Equivalents $ 1,449,789 $ 4,620,295 $ 435,212 $ 4,044,591 $ 8,186,181 $ 18,736,068
Customer Accounts - - 66,057 325 - 66,382
Other Receivables - - - - 38,995 38,995
Due From Other Governmental Units - - 12,500 4,515 - 17,015
Inventories - - - - 488,368 488,368
Total Current Assets 1,449,789 4,620,295 513,769 4,049,431 8,713,544 19,346,828
Noncurrent Assets
Net Pension Asset - - 98,952 720,039 143,098 962,089
Capital Assets Not Being Depreciated:
Construction in Progress - - - - 319,059 319,059
Total Capital Assets Not Being Depreciated - - - - 319,059 319,059
Capital Assets Being Depreciated:
Buildings and Equipment - - - 9,897,798 23,396,159 33,293,956
Improvements Other Than Buildings - - - 480,237 217,501 697,738
Right of Use(Leases) - - - 216,734 - 216,734
Right of Use(Subscriptions) - - - 1,285,570 - 1,285,570
Accumulated Depreciation - - - (9,616,795) (13,377,682) (22,994,477)
Total Capital Assets Being Depreciated - - - 2,263,544 10,235,977 12,499,521
Total Noncurrent Assets - - 98,952 2,983,583 10,698,134 13,780,669
Total Assets 1,449,789 4,620,295 612,721 7,033,013 19,411,678 33,127,497
DEFERRED OUTFLOW OF RESOURCES:
Deferred Outflow Related to Pensions - 7,349 221,776 525,797 179,219 934,141
Total Deferred Outflow Of Resources - 7,349 221.776 525,797 179,219 934,141
LIABILITIES:
Current Liabilities
Current Payables 20,093 40,327 305,966 378,064 98,938 843,386
Claims Payable(Incurred but not Reported) - 1,192,000 - - - 1,192,000
Leases and SBITA Payable-Current - - - 359,313 - 359,313
Employee Leave Benefits - - 64,623 186,466 27,196 278,285
Total Current Liabilities 20,093 1,232,327 370,589 923,843 126,134 2,672,985
Noncurrent Liabilities:
Employee Leave Benefits - - 21,891 63,165 9,213 94,269
Leases and SBITA Payable - - - 664,898 - 664,898
Net Pension Liability - 1,087 - - 889,170 890,257
Total Noncurrent Liabilities - 1,087 21,891 728,063 898,383 1,649,424
Total Liabilities 20,093 1,233,414 392,480 1,651,905 1,024,517 4,322,408
DEFERRED INFLOW OF RESOURCES:
Deferred Inflow related to Pensions - 14,428 99,498 698,036 95,801 907,763
Total Deferred Inflow Of Resources - 14,428 99,498 698,036 95,801 907,763
NET POSITION:
Net Investment in Capital Assets - - - 1,239,333 10,555,036 11,794,369
Restricted:
Pension - - 98,952 720,039 143,098 962,089
Unrestricted 1,429,696 3,379,803 243,568 3,249,497 7,772,445 16,075,009
Total Net Position $ 1,429,696 $ 3,379,803 $ 342,520 $ 5,208,869 $ 18,470,580 $ 28,831,467
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City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31,2023
Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
OPERATING REVENUES:
Charges for Services $ - $ 1,197,946 $ 4,145,412 $ 8,604,834 $ 5,685,755 $19,633,947
Other Operating Revenue - - 63,551 30,310 - 93,862
Total Operating Revenues - 1,197,946 4,208,963 8,635,144 5,685,755 19,727,809
OPERATING EXPENSES:
Administration 79,137 - 306,600 628,500 1,265,375 2,279,612
Depreciation/Amortization - - - 698,190 1,692,778 2,390,967
Operations&Maintenance - 927,122 3,763,379 7,424,213 2,032,433 14,147,146
Total Operating Expenses 79,137 927,122 4,069,979 8,750,902 4,990,585 18,817,726
Operating Income or Loss (79,137) 270,824 138,984 (115,758) 695,170 910,083
NON-OPERATING REVENUE (EXPENSE):
Gain (Loss)on Sale of Capital Assets - - - - 40,874 40,874
Interest Expense - - - (18,659) - (18,659)
Interest Revenue 19,866 203,630 29,415 160,276 348,753 761,940
Other Non-Operating Revenue - - - 1,052 904,092 905,144
Total Non-Operating Revenue(Expense) 19,866 203,630 29,415 142,669 1,293,719 1,689,299
Income(Loss) Before Contributions and Transfers (59,271) 474,454 168,399 26,911 1,988,889 2,599,382
CONTRIBUTIONS&TRANSFERS:
Transfers In (Note 4) - - 255,257 524,496 1,747,976 2,527,729
Transfers Out(Note 4) - - (553,375) (63,528) - (616,903)
Total Contributions&Transfers - - (298,118) 460,969 1,747,976 1,910,827
Change in Net Position (59,271) 474,454 (129,719) 487,880 3,736,866 4,510,209
Net Position-Beginning 1,488,966 2,905,349 472,239 4,720,989 14,733,714 24,321,258
Net Position-Ending $ 1,429,696 $ 3,379,803 $ 342,520 $ 5,208,869 $ 18,470,580 $28,831,467
163
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31,2023
Page 1 of 2
Workers
Comp Self Information Equipment
Insurance Insurance Facilities Services Rental Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users $ - $ 1,197,946 $ 4,215,201 $ 8,633,645 $ 5,780,488 $ 19,827,280
Cash Paid to Suppliers for Goods&Services (6,478) (658,050) (2,967,443) (4,676,749) (3,498,882) (11,807,603)
Cash Paid to Employees (71,392) (256,083) (1,227,902) (3,235,340) (1,180,588) (5,971,305)
Other Cash Received - - - 1,052 79,835 80,887
Net Cash Provided(Used)By Operating Activities (77,870) 283,812 19,857 722,608 1,180,853 2,129,259
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers In - - 255,257 524,496 1,747,976 2,527,729
Transfers Out - - (553,375) (63,528) - (616,903)
Net Cash Provided(Used)by Non-Capital Financing Activities - - (298,118) 460,969 1,747,976 1,910,827
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - - 214,876 214,876
Purchase of Capital Assets - - - (368,616) (4,414,831) (4,783,447)
Proceeds from Insurance Settlement - - - - 824,257 824,257
Principal Payment on Debt - - - (373,782) - (373,782)
Interest Payment on Debt - - - (4,143) (4,143)
Net Cash Provided(Used)for Capital and Related Financing Activities - - - (746,540) (3,375,698) (4,122,238)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 19,866 203,630 29.415 160,276 348,753 761,940
Net Cash Provided(Used)in Investing Activities 19,866 203,630 29.415 160,276 348,753 761,940
Net Increase(Decrease)in Cash and Cash Equivalents (58,004) 487,442 (248,846) 597,312 (98,116) 679,788
Cash and Cash Equivalents-Beginning of Year 1,507,792 4,132,853 684,059 3,447,279 8,284,297 18,056,280
Cash and Cash Equivalents- End of Year $ 1,449,788 $ 4,620,295 $ 435,213 $ 4,044,591 $ 8,186,181 $ 18,736,068
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 1,449,789 4,620,295 435,212 4,044,591 8,186,181 18,736,068
Total Cash $ 1,449,789 $ 4,620,295 $ 435,212 $ 4,044,591 $ 8,186,181 $ 18,736,068
164
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31,2023
Page 2 of 2
Workers
Comp Self Information Equipment
Insurance Insurance Facilities Services Rental Total
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income(Loss) $ (79,137) $ 270,824 $ 138,984 $ (115,758) $ 695,170 $ 910,083
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES:
Depreciation - - - 698,190 1.692,778 2,390,967
Other Non-Operating Revenues - - - - 79,835 79,835
Accounts Receivable - - 6,238 (448) 94,733 100,523
Inventory - - - - (93,299) (93,299)
Liability Increases(Decreases):
Accounts&Vouchers Payable 1,267 12,989 (139,721) 90,797 (1,175,472) (1,210,142)
Wages&Benefits Payable - - - - (105,781) (105,781)
Compensated Absences Payable - - 14,356 49,827 (7,110) 57,073
Total Adjustments 1,267 12,989 (119,127) 838,366 485,683 1,219,177
Net Cash Provided(Used)by Operating Activities $ (77,870) $ 283,812 $ 19,857 $ 722,608 $ 1,180,853 $ 2,129,259
SCHEDULE OF NONCASH INVESTING,CAPITAL AND
FINANCING ACTIVITIES
Total Non Cash Investing,Capital and Financing Activities $ - $ - $ - $ - $ - $ -
165
City of Auburn: 2023 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
*
*
ACITY of
IB u RN*
WASHINGTON
166
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn
STATISTICAL SECTION
December 31, 2023
Financial Trends Information
Financial trends schedules are intended to provide users with information to assist them in understanding and assessing
how the City's financial position has changed over time.
Schedule 1 Net position by components 168
Schedule 2 Changes in net position 169
Schedule 3 Fund balances, government funds 170
Schedule 4 Changes in fund balances, government funds 171
Schedule 5 Tax revenues by source, government funds 172
Revenue Capacity Information
The objective of providing revenue capacity information is to help users understand and assess the factors affecting
the City's ability to generate its most significant local source revenues.
Schedule 6 Assessed value by type 173
Schedule 7 Property tax data 174
Schedule 8 Property tax levies and collections 176
Schedule 9 Principal taxpayers-property taxes and sales taxes 177
Schedule 10 Retail tax collections by sector 178
Debt Capacity Information
Debt capacity information is intended to assist users to understand and assess the City's current levels of outstanding
debt and ability to issue additional debt in the future.
Schedule 11 Ratios of outstanding debt by type 179
Schedule 12 Computation of legal debt margin 180
Schedule 13 Legal debt margin ratios 180
Schedule 14 Computation of net direct and estimated overlapping debt 181
Schedule 15 Ratios of net general bonded debt to assessed value 182
Schedule 16 Pledged revenue bond coverages 183
Demographic and Economic Information
These schedules offer demographic and economic information to assist users in understanding certain aspects of the
environment within which the City operates and to provide information that facilitates comparisons of financial
statement information over time and across governmental units.
Schedule 17 Population, income and housing trends 184
Schedule 18 Major employers 185
Operating Information
These schedules contain service and infrastructure data to help users understand how the information in the City's
financial report relates to the services the City provides and the activities it performs.
Schedule 19 Staffing levels by department 186
Schedule 20 Operating indicators by department 187
Schedule 21 Capital indicators by department 188
Schedule 22 Utility customers by customer class 189
167
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 1
NET POSITION BY COMPONENTS
Last Ten Fiscal Years
(Accrual Bans of Accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental activities.
Net Investment in Capital Assets $348,080.505 $361.094.242 $367.128,894 $373368,906 $375,208,981 $372,887,236 $372.441,433 $373,890,921 $371,760,693 $ 368,081,520
Restricted 16,404.328 19,470,880 26,745,270 29,854,240 30,001,950 33,911,413 32,842,097 38,133,392 60,149,452 56,890,093
Unrestricted 51,898,566 40.928.090 42.900,814 42,803,759 42,377,297 59,840,168 67,845,872 88,819,913 85.050.827 124,798,415
Total governmental activities net position 416.383399 421.493,212 436.774,978 446,026,906 447,588,227 466,638,817 473.129,402 500,844,225 516.960,973 549,770,028
Business-type activities
Net Investment in Capital Assets 169,098,916 187.604.782 195.490,061 205,677,614 208,136,620 212.172,136 208,850,752 228,161,102 230.412,106 228.381.433
Restricted 14,115,610 4.764.340 3,110,414 1,856,970 1,924,566 2,001,709 11,471.309 1,639,895 7.557.854 7,703.800
Unrestricted 37,724,080 32.974.662 40.797,698 41,627,494 49,088,740 56,928,121 63.474.681 69.517,542 68.868,085 80,680,187
Total business-type activities net position 220.938,606 225.343.784 239,398,173 249,162,078 259,149,926 271,101,966 283,796,742 299,318,539 306.838,045 316,765.420
Primary government
Net Investment in Capital Assets 517,179,421 548.699.024 562,618,955 579,046,520 583,345,601 585.059372 581.292.185 602,052,023 602.172,799 596,462,953
Restricted 30.519,938 24.235.220 29,855,684 31,711,210 31,926,516 35,913,122 44.313.406 39,773,287 67.707.306 64.593.893
Unrestricted 89,622,646 73.902.752 83,698,512 84,431,253 91,466,037 116,768289 131,320.553 158,337,455 153,918.912 205.478.602
Total primary government net position $637.322,005 $646.836.996 $ 676,173,151 $695,188,984 $706.738,153 $737.740,783 $756.926.144 $800,162,764 $823.799.018 $ 866,535.448
Source.City of Auburn,Finance Department
168
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 2
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Expenses
Governmental activities.
General government $ 8,363,427 $ 9,187,539 $ 9,557,602 $ 10,384,647 $ 10,191,329 $ 13,292,724 $ 12,332,380 $ 12,837,356 $ 14,735,664 $ 17,796,126
Public safety 27,144,153 29,883,217 32,117,837 32,746,406 30,337,791 24,016,496 37,951,994 32,440,701 38,402,492 38,871,123
Transportation 16,150,877 17,324,036 16,602,993 17,904,352 17,620,176 17,709,231 17,781,630 18,469,045 18,517,806 19,075,820
Physical environment 2,976,461 2,924,046 3,266,375 3,217,885 3,794,576 3,981,499 3,981,592 2,992,107 3,597,960 4,631,448
Culture and recreation 11,094,524 12,096,651 12,811,186 13,5 39,098 13,665,612 13,400,311 11,681,611 12,3 32,974 14,800,322 16,735,629
Economic environment 2,751,869 3,044,354 3,224,984 3,859,863 4,140,104 4,457,626 5,308,106 3,664,340 4,662,845 5,251,455
Health and human services 622,374 925,299 573,115 674,270 787,535 619,247 671,257 2,107,798 2,179,401 3,432,638
Interest on long-term debt 3,615.211 1.986.853 1.709.647 1.555,803 1.502,236 1,466.217 650,215 651.329 677.414 731,092
Total governmental activities expenses 72,718,896 77,371,995 79,863,739 83,882,324 82,039,359 78,943,351 90,358,785 85,495,650 97,573,904 106,525,331
Business-type activities.
Water 11,992,944 13,691,529 13,107,629 12,408,008 12,499,974 13,023,888 13,253,694 13,624,963 14,094,553 16,397,394
Sewer 23,026,216 23,992,161 25,685,370 25,360,718 26,213,221 26,907,482 26,004,990 26,829,991 28,481,203 28,014,709
Storm drainage 7,668,072 8,308,559 8,814,542 8,979,969 9,374,373 9,126,096 8,780,867 9,545,696 10,370,729 11,424,247
Solid waste 12,760,313 12,907,832 13,460,155 14,539,703 15,311,654 15,682,121 15,620,963 18,383,884 26,457,098 29,377,682
Airport - - - - - - - - - 2,317,741
Non-major business-type activities 1,924,874 2,062,695 2,150,693 2,106,557 2,186,842 2,628,203 2,603,752 3,081,240 3,754,361 1,793,070
Total business-type activities expenses 57,372,419 60,962,776 63,218,389 63,394,955 65,586,064 67,367,790 66,264,266 71,465,774 83,157,944 89,324,843
Total pnmary government expenses $130.091.315 $ 138.334.771 $ 143.082.128 $ 147.277,279 $147,625,423 $ 146.311.141 $ 156.623.051 $156,961.424 $ 180.731.848 $ 195,850,174
Program revenues
Governmental activities.
Charges for services
General Government $ 1,160,198 $ 1,243,263 $ 939,184 $ 1,241,905 $ 1,462,867 $ 3,758,197 $ 3,584,821 $ 4,545,962 $ 4,506,672 $ 6,240,133
Public Safety 2,273,903 1,993,117 1,468,536 2,523,667 2,821,516 3,240,007 2,146,428 2,612,840 1,006,147 4,118,030
Transportation 1,660,270 1,446,026 3,265,147 2,118,980 886,760 3,207,197 2,103,258 4,239,115 1,796,513 2,639,295
Physical Environment 276,632 384,485 260,555 431,580 611,342 503,798 671,543 719,487 427,515 587,681
Culture and Recreation 2,876,185 3,052,599 2,508,166 3,073,262 3,355,206 3,183,370 2,191,540 3,409,793 2,715,193 4,083,742
Economic Environment 3,087,853 2,989,579 3,896,453 2,400,940 1,913,090 2,729,376 1,790,286 3,248,829 2,015,619 2,034,710
Total charges for services 11,335,041 11,109,069 12,338,041 11,790,334 11,050,781 16,621,946 12,487,875 18,776,026 12,467,659 19,703,591
Operating grants and contnbutions 1,333,652 4,234,309 2,767,931 2,257,646 2,831,794 3,394,916 6,904,118 4,877,951 7,398,845 10,836,967
Capital grants and contributions 6,001,230 19,526,548 13,275,208 13,229,502 9,065,857 6,461,827 9,455,065 11,838,148 8,644,981 4,831,617
Total governmental activities program revenues 18,669,923 34,869,926 28,381,180 27,277,482 22,948,432 26,478,689 28,847,058 35,492,125 28,511,485 35,372,175
Business-type activities
Charges for services 60,332,817 63,391,139 65,733,943 68,220,200 69,723,671 70,315,493 68,966,638 73,687,356 84,871,076 92,817,104
Operating grants and contnbutions 111,025 106,286 106,286 106,286 106,286 106,286 106,286 - - -
Capital grants and contnbutions 5,070,810 5,821,857 10,574,852 4,363,568 4,566,838 6,686,288 6,518,995 13,400,812 3,847,367 2,102,419
Total business-type activities program revenues 65,514,652 69,319,282 76,415,081 72,690,054 74,396,795 77,108,067 75,591,919 87,088,168 88,718,443 94,919,523
Total pnmary government program revenues 84,184,575 104,189,208 104,796,261 99,967,536 97,345,227 103,586,756 104,438,977 122,580,293 117,229,928 130,291,697
Net(expense)/revenue
Governmental activities (54,048,973) (42,502,069) (51,482,559) (56,604,841) (59,090,927) (52,464,662) (61,511,727) (50,003,525) (69,062,419) (71,153,157)
Business-type activities 8,142,233 8,356,506 13,196,692 9,295,099 8,810,731 9,740,277 9,327,653 15,622,394 5,560,499 5,594,680
Total pnmary government net expense $(45.906.740) $ (34.145.563) $(38.285.867) $ (47,309,742) $ (50,280.196) $(42.724.3851 $ (52.184,074)_ $ (34,381,131) $ (63,501,920) $ (65,558,477)
General revenues and other changes in net position
Governmental activities:
Taxes.
Property taxes $ 15,867,838 $ 17,271,705 $ 18,102,286 $ 20,967,953 $ 21,546,734 $22,075,276 $ 22,721,452 $23,458,850 $ 24,635,089 $ 24,597,118
Retail sales and use tax 19,744,684 21,125,730 21,475,335 22,333,454 21,996,115 22,212,601 21,900,597 25,289,050 26,295,124 29,372,547
Interfund utility taxes 4,068,667 4,260,831 4,624,951 4,540,265 4,552,505 4,760,229 4,543,436 7,101,829 6,396,937 7,771,366
Utility taxes 9,040,015 8,838,179 8,917,401 10,391,462 9,841,620 9,278,114 8,866,275 9,521,243 9,532,991 13,071,264
Excise taxes 2,888,797 4,999,517 5,057,013 4.141,146 4,393,134 5,650,339 4,580,114 6,463,047 6,110,151 3,584,905
City Business and Occupationiil - - - - - - - - 4,664,551 12,198,944
Other taxes 4,601,925 4,722,482 5,160,215 5,253,964 5,213,217 4,751,163 3,846,314 5,031,185 4,635,655 4,445,514
Investment earnings 105,117 118,399 332,520 787,786 1,657,481 2,134,741 1,027,312 (114,738) 815,061 6,969,307
Miscellaneous 178,482 194,600 157,874 204,306 428,580 258,502 252,441 572,013 1,789,159 799,586
Transfers 5,294,793 (462,955) 424,173 454,436 414,975 394,287 264,371 395,869 304,449 1,151,660
Total governmental activities 61,790,318 61,068,488 64,251,768 69,074,772 70,044,361 71,515,252 68,002,312 77,718,348 85,179,167 103,962,211
Business-type activities
Investment earnings 51,261 70,560 196,595 479,132 989,564 1,387,405 364,027 17,401 1,068,685 3,937,300
Miscellaneous 2,700,233 1,881,835 1,085,275 444,110 602,528 1,218,645 3,267,467 277,871 1,194,771 1,547,056
Transfers (5,294,793) 462,955 (424,173) (454,436) (414,975) (394,287) (264,371) (395,869) (304,449) (1,151,660)
Total business-type activities (2,543,299) 2,415,350 857,697 468,806 1,177,117 2,211,763 3,367,123 (100,597) 1,959,007 4,332,696
Total pnmary government $ 59.247.019 $ 63.483.838 $ 65.109.465 $ 69.543,578 $ 71,221,478 $ 73,727.015 $ 71.369,435 $ 77.617,751 $ 87.138.174 $ 108,294,907
Change in net position Before Change in Accounting Principle
Governmental activities 7,741,345 18,566,419 12,769,209 12,469,931 10,953,434 19,050,590 6,490,585 27,714,823 16,116,748 32,809,054
Business-type activities 5,598,934 10,771,856 14,054,389 9,763,905 9,987,848 11,952,040 12,694,776 15,521,797 7,519,506 9,927,375
Total pnmary government $ 13,340,279 $ 29.338.275 $ 26.823.598 $ 22,233,836 $ 20,941,282 $ 31,002,630 $ 19.185.361 $43.236.620 $ 23.636.254 $ 42,736,430
Change In Accounting Principle
Governmental activities - (13,456,606) 2,512,557 (3,218,004) (9,389,375) - - - - -
Business-type activities - (6.366.678) - - - - - - - -
Total pnmary government $ - $ (19.823.284) $ 2.512.557 $ (3.218,004) $ (9,389,375) $ - $ - $ - $ - $ -
Change in net position After Change in Accounting Principle
Governmental activities 7,741,345 5,109,813 15,281,766 9,251,927 1,564,059 19,050,590 6,490,585 27,714,823 16,116.748 32,809,055
Business-type activities 5,598,934 4,405,178 14,054,389 9,763,905 9,987,848 11,952,040 12,694,776 15,521,797 7,519.506 9,927.375
Total pnmary government $ 13,340,279 $ 9,514,991 $ 29,336,155 $ 19,015,832 $ 11,551,907 $ 31,002,630 $ 19,185,361 $43,236,620 $ 23,636,254 $ 42,736,430
(1)City implemented a City Business and Occupation Tax January 1,2022.
Source:City of Auburn.Finance Department
169
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 3
FUND BALANCES,GOVERNMENT FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Nonspendable $127 $127 $ - $30,453 $38,179 $36,097 $47,085 $49,674 $57,740 $63,786
Restricted - - - - - - - - - 1,942,799
Committed - - - - - - - - 1,311,450 -
Assigned 4,045,598 7,284,159 7,160,098 9,315,528 9,375,470 17,118,273 11,257,547 9,204,036 10,801,447 10,479,588
Unassigned 20,914,093 20,267,776 24,991,081 25,414,801 24,627,984 19,068,746 30,634,592 38,646,995 46,001,244 65,993,516
Total General Fund 24,959,818 27,552,062 32,151,179 34,760,782 34,041,633 36,223,116 41,939,224 47,900,705 58,171,881 78,479,689
All other governmental funds
Nonspendable 1,574,148 1,585,707 1,666,043 1,717,134 1,775,453 1,826,063 1,925,183 2,010,357 2,165,670 2,151,308
Restricted 14,830,180 17,885,173 25,079,227 28,137,106 28,226,498 32,085,350 30,916,914 36,123,035 39,207,433 35,013,713
Committed 5,066,181 3,658,719 5,421,640 3,223,108 3.079,656 3,172,152 3.910,112 5,283,101 4,219,956 11,778.743
Assigned 4,725,119 4,755,182 1,226,315 1,221,511 2,827,045 2,239,557 1,906,717 1,579,346 1,800,573 4,088,819
Total All Other Governmental Funds $ 26,195,628 $27,884,781 $33,393,225 $34,298,859 $35,908,652 $39,323,122 $38,658,926 $44,995,839 $47,393,632 $53,032,581
Source.City of Auburn,Finance Department
170
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 4
CHANGES IN FUND BALANCES,GOVERNMENT FUNDS
Last Ten Fiscal Years
(Modified Accrual Baste of Accouting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenues
Taxes $ 51,718,489 $56,632,337 $58,279,984 $ 62,425,246 $62,430,346 $64,032,701 $62,638,993 $71,897,684 $77,638,547 $90,371,600
Licenses and permits 2,400,662 2,074,432 3,005,125 1,906,796 1,853,554 2,825,404 2,086,579 2,980,103 2,275,480 2,850,318
Intergovernmental 9,379,699 13,620,446 12,714,010 16,187,560 12,234,229 11,137,941 14,734,337 13,771,035 17,286,788 15,968,133
Charges for services 5,717,712 7,321,295 11,563,678 7,117,774 6,471,503 10,467,203 8,670,078 12,437,155 10,499,530 12,429,506
Fines and forfeits 1,258,408 938,775 905,921 882,254 920,187 914,240 635,209 434,042 390,200 2,733,886
Special assessments 472,800 7,494 4,111 3,835 2,210 2,807 712 591 -Investment earnings 135,709 117,942 279,058 672,713 1,308,888 1,767,742 1,005,175 (187,615) 564,524 6,272,749
Miscellaneous 1,691,274 1,890,419 1,854,450 1,966,333 1,600,279 2,406,291 774,011 2,227,176 2,016,895 2,092,249
Total revenues 72,774,753 82,603,140 88,606,337 91,162,511 86,821,196 93,554,329 90,545,094 103,560,171 110,671,964 132,718,441
Expenditures
General government 7,712,018 8,661,592 8,936,366 9,755,757 9,804,631 12,688,544 11,951,230 13,138,358 14,517,861 17,410,720
Public safety 27,264,294 29,164,772 30,809,069 32,084,376 34,226,582 36,322,025 36,790,348 38,989,056 40,559,737 41,833,556
Transportation 8,979,583 16,323,425 12,607,616 20,652,538 15,512,706 11,641,856 10,102,948 12,831,014 14,535,310 9,554,428
Physical environment 3,086,738 2,991,145 3,309,993 3,359,548 4,128,266 4,372,251 4,339,008 3,985,974 4,321,115 5,352,978
Economic environment 2,783,898 3,066,674 3,324,309 3,880,025 4,314,648 4,699,552 5,587,597 4,240,428 5,037,287 5,497,635
Health and human services 626,681 925,299 573,115 674,270 787,535 619,247 821,362 2,192,261 1,982,524 3,292,302
Culture and recreation 9,759,110 10,700,680 11,480,488 11,943,070 12,450,884 12,437,720 10,571,483 11,953,562 13,958,960 15,535,454
Capital outlay 01 3,394,886 3,580,304 6,784,343 2,096,281 2,145,994 3,270,129 3,743,808 2,955,695 8,431,192 8,849,133
Debt service:
Pnncipal 2,704,468 1,713,940 1,737,569 1,635,126 1,676,777 1,437,533 1,738,594 1,239,178 1,497,942 1,903,102
Interest/other 2,892,281 1,801,109 1,632,786 1,590,525 1,537,504 1,478,169 822,678 847,629 868,442 915,318
Total expenditures 69,203,957 78,928,940 81,195,654 87,671,516 86,585,527 88,967,026 86,469,056 92,373,155 105,710,370 110,144,627
Excess of revenues
over(under)expenditures 3,570,796 3,674,200 7,410,683 3,490,995 235,669 4,587,303 4,076,038 11,187,016 4,961,594 22,573,814
Other financing sources(uses)
Transfers in 5,309,769 7,100,830 11,121,265 7,050,817 8,205,317 6,477,764 12,216,778 9,703,240 9,848,536 10,371,667
Transfers out (5,003,448) (6,668,626) (11,182,611) (7,163,278) (7,838,860) (5,646,268) (11,430,226) (9,007,928) (9,156,543) (11,130,834)
Insurance recovenes 136,585 153,041 83,737 134,003 288,518 177,154 189,322 416,066 103,473 497,371
Issuance of debt 240,366 - 3,128,732 - - - - - 4,685,125 3,624,740
Issuance of refunding bond - - 38,198 - - - 19,480,000 . - -
Debt Premium - - - - - - 3,989,749 . - -
Payment to escrow agent-refunded bond - - (3,005,000) - - - (23,469,749) - - -
Sales of capital assets 17,458 21,952 - 2,700 - - - - 2,226,784 10,000
Total other financing sources(uses) 700,730 607,197 184,321 24,242 654,975 1,008,650 975,874 1,111,378 7,707,375 3,372,944
Net change in fund balances $ 4,271,526 S 4,281,397 S 7,595,004 $ 3,515,237 $ 890,644 $ 5,595,953 $ 5,051,912 S 12,298,394 S 12,668,969 $25,946,758
Debt service as a percentage of noncaprtal 10 68% 5.50% 5.14% 4.66% 4 38% 3.72% 3.36% 2.58% 2.72% 2.93%
expenditures
(1) Capital outlay reported in governmental funds for 2023 are$8,849,133 plus$5,041,677 which is reported for each functional
activity with the other funds results in total capital outlay of$13,890,810 as reported on the Reconciliation of the
Statement of Revenues,Expenditures,and Changes in Fund Balances of Government Funds to the Statement of Activities
Source:City of Auburn,Finance Department
171
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 5
TAX REVENUES BY SOURCE, GOVERNMENT FUNDS
Last Ten Fiscal Years
Fiscal Sales Interfund City Business&
Year Property &Use Utility Utility Excise Occupation(1) Other Total
2014 15,933,338 19,744,684 4,068,667 9,040,015 2,888,797 - 42,988 51,718,489
2015 17,337,108 21,125,730 4,260,831 8,838,179 4,999,517 - 70,972 56,632,337
2016 18,067,324 21,475,335 4,624,951 8,917,401 5,057,013 - 137,960 58,279,984
2017 20,976,384 22,333,454 4,540,265 10,391,462 4,141,146 - 42,535 62,425,246
2018 21,561,924 21,996,115 4,552,505 9,841,620 4,393,134 - 85,048 62,430,346
2019 22,057,841 22,212,601 4,760,229 9,278,114 5,650,339 - 73,577 64,032,701
2020 22,688,696 21,900,597 4,543,436 8,866,275 4,580,114 - 59,875 62,638,993
2021 23,480,894 25,289,050 7,101,829 9,521,243 6,463,047 - 41,621 71,897,684
2022 24,637,908 26,295,124 6,396,937 9,532,991 6,110,151 4,664,551 885 77,638,547
2023 24,519,933 29,372,547 7,771,366 13,071,264 3,584,905 12,051,586 - 90,371,600
Change
2014-2023 53.9% 48.8% 91.0% 44.6% 24.1% 100.0% -100.0% 74.7%
(1)City implemented a City Business and Occupation Tax January 1,2022.
Source:City of Auburn, Finance Department
Figure 5: Tax Revenues by Source
2014-2023
$100
$90
$80
i
o $70 —
_ , •City Business&
$60 , — Occupation
II ■ •
■Excise&Other
OUtility
$40
O Interfund
$30 -- Utility
•Sales&Use
$10 -0 -
$ ■ ■ ■ ■ ■ ■ ■
$0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
172
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn, Washington
SCHEDULE 6
ASSESSED VALUE BY TYPE
Last Ten Fiscal Years
(Amounts Expressed in Thousands)
State Total Total
Fiscal Property Personal Land and Assessed Direct
Year and Other Property Building Value Rate
2014 132,854 880,015 6,409,300 7,422,169 2.17
2015 146,941 911,493 7,308,219 8,366,653 2.08
2016 156,673 958,859 7,851,588 8,967,119 2.05
2017 171,829 957,161 8,592,887 9,721,877 2.20
2018 169,543 918,637 9,611,541 10,699,721 2.03
2019 171,044 733,264 10,585,207 11,489,515 1.92
2020 165,647 832,886 11,381,503 12,380,036 1.82
2021 173,560 602,789 12,592,421 13,368,770 1.77
2022 185,841 666,342 13,839,177 14,691,361 1.66
2023 192,365 979,016 16,367,123 17,538,504 1.39
Source: King County Dept of Assessments&Pierce County Assessor-Treasurer
Figure 6: Assessed Value by Type
2014-2023
$18
$16
$14
—
$12 OState Property
a' $10 —
❑Personal Property
0 III •Land and Buildings
$8
$6
$4
$2
$0 A —rid —rid i-.. A A A .--r.. .-1--
2014 2015 2016 2017 2018 2019 2020 2021 2022 202
173
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn, Washington
SCHEDULE 7
PROPERTY TAX DATA
Last Ten Fiscal Years
Page 1 of 2
Item 2014 2015 2016 2017
Assessed and estimated actual values (1)
Estimated and actual value (in thousands) $ 7,422,169 $ 8,366,653 $ 8,967,119 $ 9,721,877
Assessed value (in thousands) 7,422,169 8,366,653 8,967,119 9,721,877
Ratio of assessed to actual 100% 100% 100% 100%
Property tax rates(1)
Direct regular and special
General fund $ 2.16739 $ 2.08085 $ 2.04719 $ 2.19668
Subtotal 2.16739 2.08085 2.04719 2.19668
Overlapping regular and special (1)
Auburn School District $ 6.50262 $ 6.14079 $ 5.82831 $ 6.74299
King County 1.51605 1.34522 1.48027 1.38294
State of Washington 2.47044 2.28514 2.16898 2.03205
Port of Seattle 0.21533 0.18885 0.16954 0.15334
Sound Transit - - - 0.25000
Emergency Medical Services 0.33500 0.30217 0.28235 0.26305
Hospital District 0.50000 0.50000 0.50000 0.50089
King County Library District 0.56175 0.50276 0.47714 0.45118
Valley Regional Fire Authority 1.20294 1.18043 1.13495 1.06821
King County Flood Zone 0.15369 0.13860 0.12980 0.11740
King County Ferry District 0.00349 - - -
Subtotal 13.46131 12.58396 12.17134 12.96205
Total direct and overlapping $ 15.62870 $ 14.66481 $ 14.21853 $ 15.15873
Sources:
(1) King County and Pierce County Departments of Assessments; real and personal property
has been assessed at 100%of the estimated actual value.
Figure 7a:Ten Years City Property Tax Rates
2014-2023
$3.00
c
O
$2.50 -
v
I
$2.00$150
$1.00
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
174
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
Page 2 of 2
2018 2019 2020 2021 2022 2023
$ 10,699,721 $ 11,489,516 $ 12,380,036 $ 13,368,770 $ 14,691,361 $ 15,666,686
10,699,721 11,489,516 12,380,036 13,368,770 14,691,361 15,666,686
100% 100% 100% 100% 100% 100%
$ 2.03239 $ 1.92435 $ 1.81928 $ 1.76739 $ 1.66241 $ 1.39068
2.03239 1.92435 1.81928 1.76739 1.66241 1.39068
$ 6.29971 $ 3.81351 $ 5.19948 $ 5.20244 $ 4.98502 $ 4.70683
1.32735 1.21906 1.23953 1.24688 1.22827 1.33792
2.91820 2.62922 3.02799 3.08823 2.81695 2.51751
0.13518 0.12266 0.11944 0.11984 0.11258 0.10470
0.22745 0.20700 0.19937 0.19709 0.18409 0.16483
0.23940 0.21762 0.26500 0.26499 0.24841 0.18498
0.45689 0.41673 0.40069 0.38511 0.35434 0.35434
0.41190 0.37441 0.36040 0.35733 0.32757 0.28875
0.98189 0.92352 0.86897 1.10439 1.03322 0.86355
0.10708 0.09660 0.09199 0.08909 0.08146 0.07067
13.10505 10.02033 11.77286 12.05539 11.37191 10.59408
$ 15.13744 $ 11.94468 $ 13.59214 $ 13.82278 $ 13.03432 $ 11.98476
Figure 7b: Property Tax Rates
Last Ten Fiscal Years
$14.00 o Sound Transit
o Hospital District
$12.00 -
• King County Ferry District
m
n $10.00 - 111
o • King County Flood Zone
Q v $8.00 _ - O Valley Regional Fire Authority
rz • King County Library District
- -
■ Emergency Medical Services
$4.00 - • Port of Seattle
O State of Washington
$2.00 - o King County
$0.00 • Auburn School District
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
175
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn, Washington
SCHEDULE 8
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Total Tax Collected Within the Collections
Fiscal Levy for Fiscal Year of the Levy in Subsequent Total Collections to Date Current Year
Year Fiscal Year Amount %of Levy Years Amount %of Levy Levy Balance
King County:
2014 14,182,033 13,970,560 98.5% 189,650 $ 14,160,210 99.8% $ 21,823
2015 15,363,917 15,226,048 99.1% 177,630 15,403,678 100.3% (39,760)
2016 16,031,663 15,897,626 99.2% 198,303 16,095,929 100.4% (64,266)
2017 18,674,530 18,418,844 98.6% 224,899 18,643,742 99.8% 30,788
2018 19,097,239 18,872,111 98.8% 216,180 19,088,291 100.0% 8,948
2019 19,542,744 19,298,789 98.8% 226,786 19,525,574 99.9% 17,170
2020 20,041,060 19,775,977 98.7% 243,749 20,019,727 99.9% 21,333
2021 20,702,770 20,480,037 98.9% 179,758 20,659,794 99.8% 42,976
2022 21,784,605 21,449,439 98.5% 193,771 21,643,209 99.4% 141,396
2023 21,591,893 21,316,712 98.7% - 21,316,712 98.7% 275,181
$ 455,588
Pierce County:
2014 1,595,675 1,586,010 99.4% 9,665 $ 1,595,675 100.0% $ 0
2015 1,746,163 1,738,447 99.6% 7,716 1,746,163 100.0% (0)
2016 1,867,636 1,857,614 99.5% 10,022 1,867,636 100.0% (0)
2017 2,237,907 2,229,137 99.6% 8,770 2,237,907 100.0% (0)
2018 2,320,452 2,312,378 99.7% 8,073 2,320,452 100.0% 0
2019 2,389,591 2,383,037 99.7% 6,553 2,389,591 100.0% 0
2020 2,435,655 2,433,602 99.9% 2,053 2,435,655 100.0% 0
2021 2,515,397 2,505,423 99.6% 9,471 2,514,894 100.0% 503
2022 2,626,387 2,615,456 99.6% 8,616 2,624,072 99.9% 2,315
2023 2,635,778 2,623,794 99.5% - 2,623,794 99.5% 11,984
$ 14,802
Total current levy balance $ 470,390
Source: King County Finance and Business Operations Division
Pierce County Budget and Finance Department
FIGURE 8:TEN YEARS COLLECTION OF LEVIED PROPERTY TAXES
Last Ten Fiscal Years
100.5% -
100.0% Collection
99.5% percentage within
the fiscal year of
99.0% - the levy
98.5% (Total collection
98.0% percentage
97.5% -
97.0% I I I I I I I I
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
176
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 9a
PRINCIPAL TAXPAYERS-PROPERTY TAXES
Current Year and Ten Years Ago
2023 2014
Percentage Percentage
of Total City of Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Value Rank Assessed Value
BOEING $ 440,205,879 1 2.81% $ 611,988,779 1 8.25%
EPROPERTY TAX 230,781,400 2 1.47% 74,754,500 4 1.01%
PPF INDUSTRIAL 222,736,600 3 1.42% 74,933,312 3 1.01%
SAFEWAY INC C/O COMP PROPER 211,024,423 4 1.35% 43,081,100 8 0.58%
USPP VALLEY CENTRE CORPORAT 182,034,700 5 1.16% N/A N/A
C/O PROLOGIS-RE TAX 133,536,800 6 0.85% N/A N/A
MARVIN F POER AND COMPANY 121,810,600 7 0.78% 86,951,812 2 1.170/0
GLIMCHER REALTY 114,616,900 8 0.73% N/A N/A
AUBURN 18 BUSINESS PARK 80,090,700 9 0.51% N/A N/A
LIT INDUSTRIAL 79,193,600 10 0.51% N/A N/A
Smith Kendra N/A 69,112,597 5 0.93%
Harvest Invest N/A 54,917,400 6 0.74%
DCT Hudson Dist Ctr N/A 54,061,800 7 0.73%
CREF3 W Valley Owner N/A 29,323,400 10 0.40%
Emerald Corporate Park N/A 32,203,327 9 0.43%
TOTALS $ 1,816,031,602 11.59% $ 1,131,328,027 15.24%
Source: King County and Pierce County Departments of Assessments
Total assessed value for 2023: $ 15,666,685,930
Total assessed value for 2014: $ 7,422,169,137
FIGURE 9a-1:TOP TAXPAYER ASSESSED VALUE AS A FIGURE 9a-2:TOP 10 TAXPAYERS ASSESSED VALUE AS A
PERCENTAGE OF TOTAL ASSESSED VALUE P E RCENTAG E O F TOTAL ASSESSED VALUE
Current Year and Ten Years Ago Current Year and Ten Years Ago
2591 25%
2091 20%
15°t 1-14
10°;, 10%
50, . 5%
0% 0%
2023 2014 2023 2014
City of Auburn,Washington
SCHEDULE 9b
PRINCIPAL TAXPAYERS-SALES TAXES
Current Year and Ten Years Ago
2023 2014
Percentage Percentage
Sales of Total City Sales of Total City
Tax Sales Taxes Tax Sales Taxes
Received Sector 1'1 Rank Received Received Sector OI Rank Received
$ 817,508 Automotive 1 3.6% $ 806.869 Transportation Manufacturing 1 3.10/0
602,716 Retail Trade 2 2.6% 449,536 General Merchandise Store 2 2.5
484,305 Automotive 3 2.1% 386,983 Automotive 3 2.5%
430,724 Retail Trade 4 1.9% 360,318 Automotive 4 2.3%
429,171 Automotive 5 1.9% 323,393 Automotive 5 2.0%
394,832 Automotive 6 1.70/0 287.739 Automotive 6 1.9%
369,995 Retail Trade 7 1.6% 283,004 Construction 7 1.6%
364,865 Construction 8 1.6% 242,936 General Merchandise Store 8 1.6%
342,679 Transportation 9 1.5% 219,040 Automotive 9 1.5%
339,555 Miscellaneous 10 1.5% 205,857 Bldg.Material&Garden 10 1.4%
$ 4,576,350 19.9% $ 3.565,675 20.4%
Source: Washington State Department of Revenue
(1)It is illegal to disclose specific taxpayer sales tax information,so the above information is being provided
without identification.
177
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 10
RETAIL TAX COLLECTIONS BY SECTOR
Last Ten Fiscal Years
(Amounts Expressed in Thousands)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
RETAIL TRADE SECTOR
Automotive/gas $ 3,309 $ 3,707 $ 3,659 $ 3,972 $ 4,122 $ 4,069 $ 3,827 $ 4,555 $ 4,780 $ 4,937
Furniture 254 254 185 197 210 222 209 290 440 223
Electronics&appliances 237 295 221 211 229 277 300 344 190 420
Building materials 502 590 579 580 576 652 751 803 789 730
Food stores 353 368 397 369 388 406 451 487 565 621
Health&personal care 188 221 284 369 420 426 348 391 406 402
Apparel 1,009 1,080 1,136 1,119 1,170 1,236 873 1,123 1,137 1,129
General merchandise 955 988 1,018 993 221 818 878 917 1,026 875
Misc.retail trade 1,182 1,193 1,032 1,033 1,827 1,399 1,689 2,107 2,100 2,173
Subtotal-Retail Trade 7,989 8,695 8,512 8,843 9,163 9,506 9,327 11,017 11,433 11,510
SERVICE SECTOR
Information $ 487 $ 526 $ 630 $ 662 $ 638 $ 668 $ 685 $ 760 $ 848 $ 919
Finance&insurance 88 95 111 122 140 138 178 158 197 148
Real estate,rental,leasing 315 334 359 368 368 434 369 449 463 512
Professional,scientific,technical 216 195 238 239 254 344 394 482 514 551
Administrative,supply&remediation services 350 383 329 276 424 524 652 792 785 897
Educational 49 60 50 56 47 46 40 44 47 55
Healthcare&social services 66 82 92 75 93 93 111 99 120 110
Arts&entertainment 158 208 156 110 119 120 50 74 126 179
Accommodation&food service 1,067 1,159 1,218 1,276 1,435 1,469 1,205 1,429 1,528 1,567
Other services 526 603 788 728 711 609 537 637 767 786
Subtotal-Services 3,322 3,646 3,970 3,912 4,229 4,445 4,220 4,924 5,395 5,725
OTHER SECTORS
Construction $ 1,754 $ 2,297 $ 2,292 $ 2,632 $ 2,310 $ 2,193 $ 3,068 $ 3,034 $ 2,828 $ 2,950
Manufacturing 1,163 862 761 678 754 821 390 501 749 531
Transportation 71 66 99 89 120 89 197 373 249 225
Wholesaling 1,205 1,229 1,265 1,363 1,469 1,496 1,346 1,424 1,578 1,668
Other business 120 72 67 65 154 265 308 410 428 390
Subtotal-Other 4,312 4,525 4,485 4,827 4,807 4,863 5,309 5,742 5,833 5,765
GRAND TOTAL $ 15,623 $16,866 $ 16,967 $ 17,582 $ 18,198 $18,814 $ 18,856 $21,683 $ 22,661 $23,000
OVERLAPPING SALES TAX RATES
Basic sales tax rates
City of Auburn 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% 0.85%
Washington State 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50%
King County 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Regional Transit Authority 0.90% 0.90% 0.90% 0.90% 1.40% 1.40% 1.40% 1.50% 1.50% 1.60%
Metro 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90%
Criminal Justice 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%
Total basic sales tax rate 9.50% 9.50% 9.50% 9.50% 10.00% 10.00% 10.00% 10.10% 10.10% 10.20%
Special sales tax rates
Motor vehicles 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.37%
Source City of Auburn Finance Department and State of Washington
FIGURE 10:RETAIL TAX COLLECTIONS
City of Auburn:2014-2023
$24
$22
$20 I ■ Other
$18 Iiii ■ Wholesaling
o $16 I � �` =: •
0■ CMonrtanur ufacturing ction
$14 ■ . I ,
$12 - —
$10 ._• , , , O Services
$8 = ■ Other Retail
$6 I
I
I
■ Automotive
$4 la I. PI • M
so - -
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
178
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 11
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities Business-type Activities
General Public Works Public Works Total Percentage
Fiscal Obligation Trust Fund Capital Lease and Subscription Revenue Trust Fund Primary of Personal Per
Year Bonds Loans Leases Liability Bonds Loans Government(2) Income()) Capita
2014 $57,367,766 $ 4,284,173 $ 435,068 - $ 32,813,473 $ 7,524,538 $ 102,425,018 5.12% $1,372.44
2015 55,094,519 4,086,797 569,773 - 31,304,378 7,563,847 98,619,314 4.85% 1,305.44
2016 54,245,944 3,889,421 476,635 - 28,545,000 7,522,767 94,679,767 4.48% 1,228.65
2017 50,766,661 3,692,045 382,914 - 28,161,699 6,702,388 89,705,707 4.07% 1,136.09
2018 48,427,873 3,494,669 282,461 - 26,523,113 5,866,029 84,594,145 3.58% 1,049.36
2019 42,703,404 3,297,294 173,692 - 24,829,528 4,967,012 75,970,930 2.98% 929.65
2020 41,060,378 3,099,918 - - 37,460,053 4,351,217 85,971,566 3.10% 1,049.20
2021 39,156,176 2,902,542 - - 35,131,084 3,584,955 80,774,757 2.60% 917.06
2022 37,185,012 2,705,166 - 4,668,739 32,722,115 3,045,779 64,437,846 1.96% 726.06
2023 35,147,469 2,507,791 - 8,533,074 30,223,146 4,796,751 81,208,231 2.21% 914.30
Sources: City of Auburn,Finance Department
(1)Personal income data provided by US Census Bureau estimate.
(2)Excludes compensated absences
FIGURE 11: PER CAPITA DEBT
Last Ten Fiscal Years
1.500
1,200
900 \ /�
600 �/
300
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
•
179
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 12
COMPUTATION OF LEGAL DEBT MARGIN
As of December 31,2023
General Capacity Special Purpose Capacity
Parks and Utility Total
Councilmanic Excess Levy Open Spaces Purpose Capacity
December 31,2023-Total Assessed Value:
$ 17,869,840,473
2.5%of Assessed Value $ - $ 446,746,012 $ 446,746,012 $ 446,746,012 $ 1,340,238,036
1.5%of Assessed Value 268,047,607 (268,047,607) - - -
Statutory Debt Limit 268,047,607 178,698,405 446,746,012 446,746,012 1,340,238,036
Debt Outstanding 34,509,925 - - - 34,509,925
Net Debt Outstanding 34,509,925 - - - 34,509,925
Remaining Debt Capacity $ 233,537,682 $ 178,698,405 $ 446,746,012 $ 446,746,012 $ 1,305,728,111
City of Auburn,Washington
SCHEDULE 13
LEGAL DEBT MARGIN RATIOS
Last Ten Fiscal Years
(Expressed in Thousands)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Debt Limit $ 617,872 $ 661,996 $ 716,628 $ 791,936 $ 854,513 $ 923,770 $ 990,892 $ 1,078,980 $ 1,317,264 $ 1,340,238
Total net debt
applicable to limit 61,892 59,409 57,152 54,208 52,097 46,115 40,356 38,474 36,525 34,510
Legal debt margin $ 555,980 $ 602,588 $ 659,476 $ 737,728 $ 802,416 $ 877,655 $ 950,535 $ 1,040,505 $ 1,280,738 $ 1,305,728
Total net debt
applicable to the limit
as a percentage of debt limit 10.02% 8.97% 7.98% 6.85% 6.10% 4.99% 4.07% 3.57% 2.77% 2.57%
180
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn, Washington
SCHEDULE 14
COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT
As of December 31, 2023
Net Debt Percent Bonded Amount
Outstanding Applicable(3) Applicable
Net direct debt:
Net direct debt-City of Auburn(1) $ 46,188,334
Estimated net overlapping debt: (2)
King County $ 870,837,000 1.79% $ 15,587,982
Port of Seattle 315,360,000 1.79% 5,644,944
School District No.210(4) 501,290,000 55.88% 280,120,852
School District No.408 437,350,000 80.11% 350,361,085
School District No.415 166,141,000 1.69% 2,807,783
Rural Library District 15,670,000 2.78% 435,626
Valley Regional Fire Authority 5,482,200 89.14% 4,886,833
Pierce County 134,350,000 0.99% 1,330,065
Total estimated net overlapping debt 661,175,170
Total direct and overlapping debt $ 707,363,504
Sources:
(1) Includes both bonded and non bonded debt related to government activities. From Note 7 Changes in LT Liabilities
(2) Overlapping governments
(3) King County Assessors office and Pierce County Assessors office.
(4) School District No.210 overlapping debt is as of 8/31/2023.
Calculation of overlapping debt: applicable percentage is determined by the ratio of assessed valuation of taxable property
in overlapping unit to valuation of property subject to taxation in the City of Auburn.
181
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn, Washington
SCHEDULE 15
RATIOS OF NET GENERAL BONDED DEBT TO ASSESSED VALUE
AND GROSS BONDED DEBT PER CAPITA
Last Ten Fiscal Years
Ratio
of Net
Debt Net Bonded Net
Assessed Service Bonded Debt to Bonded
Fiscal Value(1) Bonded Amount(3) Debt Assessed Debt per
Year Population (Thousands) Debt(2) Available (Thousands) Value Capita
2014 74,630 $ 7,422,169 $ 57,367,766 $ 34,856 $ 57,333 0.77% $ 769
2015 75,545 8,366,653 55,094,519 13,278 55,081 0.66% 729
2016 77,060 8,967,119 54,245,944 11,945 54,234 0.60% 704
2017 78,960 9,721,877 50,766,661 9,686 50,757 0.52% 643
2018 80,615 10,699,721 48,427,873 5,386 48,422 0.45% 601
2019 81,720 11,489,516 42,703,404 1,917 42,701 0.37% 523
2020 81,940 12,380,036 41,060,378 2,873 41,058 0.33% 501
2021 88,080 13,368,770 39,156,176 3,828 39,152 0.29% 445
2022 88,750 14,691,361 37,185,012 1,702 37,183 0.25% 419
2023 88,820 15,666,686 35,147,469 - 35,147 0.22% 396
Notes:
(1) From Schedule 7
(2) General Obligation Debt related to government activities, from Schedule 11.
(3) Restricted fund balance from debt service fund.
FIGURE 15: BONDED DEBT RATIOS
Last Ten Fiscal Years
0.0100 $1,000
0.0080 $800
I
a 0.0060 I $600
a 0.0040 $400
a
0.0020 I $200
- I I I I I I I I $0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Year
f Debt/AV —e—Debt/Pop
182
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn, Washington
SCHEDULE 16
PLEDGED REVENUE BOND COVERAGES
Last Ten Fiscal Years
Direct(2) Debt Service Requirements
Gross(I) Operating Net Revenue Times
Year Revenue Expense Available Principal Interest Total (3) Coverage
2014 $ 46,900,016 $ 35,502,812 $ 11,397,204 $ 1,943,830 $ 1,508,405 $ 3,452,235 3.30
2015 49,673,159 38,425,799 11,247,360 2,197,667 1,599,347 3,797,014 2.96
2016 50,385,548 38,614,719 11,770,829 2,231,093 1,563,433 3,794,526 3.10
2017 51,771,171 38,726,814 13,044,357 2,326,117 1,523,830 3,849,947 3.39
2018 53,103,312 39,020,666 14,082,646 2,422,369 1,494,706 3,917,075 3.60
2019 53,910,487 39,330,641 14,579,846 2,482,692 1,391,468 3,874,160 3.76
2020 51,149,771 38,530,032 12,619,739 2,553,276 1,334,334 3,887,610 3.25
2021 54,013,161 41,094,457 12,918,704 2,626,262 1,450,352 4,076,614 3.17
2022 57,526,616 42,612,259 14,914,357 2,479,176 1,363,783 3,842,959 3.88
2023 65,822,459 47,179,167 18,643,291 2,697,225 1,311,513 4,008,738 4.65
Source: City of Auburn, Finance Department
(1) Includes water, sewer&storm drainage operating, interest and other revenues.
(2) Includes water, sewer&storm drainage operating expenses less depreciation.
(3) Includes both parity and non-parity debt.
FIGURE 16: UTILITY BOND COVERAGES
Last Ten Fiscal Years
$20
$18
$16
$14
$12
m
E $10
$8
$6
$4
$2
$0 ,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
YEAR
—•—Net revenue available —M—Debt service requirements
183
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 17
POPULATION,INCOME AND HOUSING TRENDS
Last Ten Fiscal Years
Item 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
School enrollment(1) 15,277 15,663 15,945 16,525 16,949 17,300 16,702 16,880 17,640 17,545
Rate of unemployment(2) 5.4% 4.9% 4.4% 4.4% 4.2% 3.5% 9.5% 6.4% 3.9% 3.8%
Population(3) 74,630 75,545 77,060 78,960 80,615 81,720 81.940 88,080 88,750 88,820
Personal income(thousands of dollars)(4) $ 1.917,219 $2.000,606 $ 2,033,520 $ 2,111,829 $ 2,206,142 $ 2.365,567 $ 2,552,034 $ 2,769,162 $ 3,108,167 $ 3.675,727
Per capita personal income(4) $ 26,179 $ 26,807 $ 26,918 $ 27,405 $ 27,940 $ 29,344 $ 31,229 $ 33,795 $ 35,288 $ 41,384
Housing units(5)
One unit 15,804 16,042 16,167 16,373 16,616 16,674 17.046 17,128 17,185 17,215
Two or more 10,841 10,847 10,854 11,110 11,417 12,008 12,230 12,532 12,738 12,740
Mobile home or special 2,631 2,637 2,630 2,675 2,659 2,663 2,671 2,674 2,676 2,677
Total housing units 29,276 29,526 29,651 30,158 30,692 31,345 31,947 32,334 32,599 32,632
Sources:
(1)Auburn School District No.408
(2)Bureau of Labor Statistics(BLS)
(3)WA State Office of Financial Management
(4)US Census Bureau
(5)WA State Office of Financial Management
FIGURE 17:POPULATION AND HOUSINGTRENDS
Last Ten Fiscal Years
100.000
i
80.000 _
60.000 t ilk
40.000
. • 111 t 1 1 4 $
20,000
0 , I I I I I I I I
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
-A-Population Total housing units
184
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 18
MAJOR EMPLOYERS
Current Year and Ten Years Ago
2023 2014
Percentage Percentage
of Total City of Total City
Employer Product/service Employees Rank Employment Employees Rank Employment
The Boeing Company Aerospace 3,935 1 9.5% 6,100 1 17.3%
Auburn School District Education 2,993 2 7.2% 2,373 3 6.7%
Muckleshoot Indian Tribe Gaming 1,500 3 3.6% 1,643 4 4.6%
Multicare Auburn Medical Center*a Hospital 1,482 4 3.6% 1,106 7 3.1%
Green River Community College Education 857 5 2.1% 1,121 5 3.2%
Safeway Distribution Center Distribution 817 6 2.0% 905 8 2.6%
Costco Wholesale/Optical#190 Distribution 782 7 1.9% -
City of Auburn City government 597 8 1.4% -
Ply Gem Pacific Windows Corp. Manufacturing 550 9 1.3% -
FAA Gov't/Public offices 451 10 1.1% -
Walmart#2385 Retail 650 9 1.8%
Pepsi Beverages Company Manufacturing 600 10 1.7%
Zones,LLC Retail 1,144 6 3.2%
Hospital Central Services Retail 3,200 2 9.1%
Totals 13,964 33.7% 18,842 53.3%
2023 -City of Auburn, Economic Development
2014-City of Auburn ACFR
* Previously the Supermall.
**Previously Auburn Regional Medical Center.
FIGURE 18a:AUBURN EMPLOYMENT BASE FIGURE 18b:AUBURN EMPLOYMENT BASE PERCENTAGE
PERCENTAGE OF TOP EMPLOYER C OMPARED TO ALL OF TOP 10 EMPLOYERS COMPARED TO ALL EMPLOYERS
EMPLOYERS Last Ten Fiscal Years
Last Ten Fiscal Years
100%
100% -
80% 80%
60% 60%
■Top employer ■Top 10 employers
40% 1 7 1 OAll employers 40% •All employers
20%
20%
0%
2014 2023 0%
2014 2023
185
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn, Washington
SCHEDULE 19
STAFFING LEVELS BY DEPARTMENT
Last Ten Fiscal Years
Department 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Mayor 3 3 3 3 3 3 4 5 6 7
Administration (I) 8 8 10 11 12 8 7 5 5 5
Human Resources 8 8 9 8 8 8 9 8 8 9
Finance 23 22 22 22 22 24 24 25 26 27
Legal 14 14 14 15 15 16 16 21 21 21
Community Development 25 26 26 26 25 32 31 32 33 33
Police 126 129 131 138 140 140 140 139 139 139
Public Works 49 50 53 54 55 55 55 55 55 56
Parks, Arts and Recreation 45 45 47 47 47 49 48 48 48 51
Street 19 19 19 20 20 21 21 21 23 23
Water 24 23 23 23 23 23 23 23 24 24
Sewer 10 10 10 10 10 10 10 10 10 11
Storm Drainage 10 10 10 10 12 12 12 12 12 14
Solid Waste 2 2 2 2 2 - - - - -
Airport (2) - - - - 3 3 3 3 3 3
Cemetery 5 5 6 6 6 6 6 6 7 7
Facilities 9 10 10 10 10 11 11 11 11 11
Multimedia (3) 4 4 4 4 4 4 4 4 4 4
Innovation &Technology 15 16 16 17 17 18 18 18 18 19
Equipment Rental 12 12 12 12 12 12 12 13 13 14
TOTAL 411 416 427 438 446 454 453 459 466 478
Source: City of Auburn Finance Department
(1) The Administration Department was created in 2014. These FTEs were reorganized from several existing departments such
as the Mayors Department, Public Works and Community Development. This department primarily consists of Emergency
Management, Economic Development and Public Affairs.
(2) In 2018, 3.0 FTEs were added to the Airport and the Airport is now managed in-house.
(3) In 2014 the Multimedia Division was reorganized from the Innovation &Technology Fund into its'own Internal Service
Fund. The 3.6 FTEs report to the Director of Administration. In 2021, the Multimedia Assistant position was increased
from 0.6 FTE to 0.75 FTE.
FIGURE 19:STAFFING LEVELS
BY TYPE OF SERVICE
Last Ten Fiscal Years
160
140 - —‘.1-11
120 - ■2014
i; 0 2015
n
E 100 -- •2016
g 80 _ ❑2017
E
z ■2018
60 ■2019
�� s 20201
`io - ■2021
®2022
20 .�I: FI1dilliI1
Police Public Parks,Arts& Utilitie> Administration Community Other
Works/Streets Recreation Development
186
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 20
OPERATING INDICATORS BY DEPARTMENT
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Planning*
Commercial permits 389 386 410 320 322 338 270 278 232 218
Commercial construction value($1,000's) $ 60,732 $ 66,223 $ 151,220 $ 74,840 $ 72,623 $ 157,026 $ 93,920 $ 101,169 $ 75,544 $ 53,701
Residential permits 463 340 426 345 210 195 202 232 289 55
Residential construction value($1,000's) $ 84,539 $ 63,370 $ 73,679 $ 52,750 $ 25,790 $ 18,832 $ 32,630 $ 37,018 $ 34,235 $ 20,649
Police
Crimes:
Arson 32 - - 19 20 22 19 16 32 16
Aggravated Assault 156 186 179 198 158 171 208 184 252 246
Burglary 810 851 727 722 615 547 587 611 828 773
DUI 126 188 158 194 223 180 186 159 111 136
Homicide 1 8 6 3 1 5 6 5 13 8
Narcotics 458 511 458 742 912 797 770 231 133 359
Rape 31 31 36 49 42 45 32 47 42 52
Robbery 104 91 98 117 115 125 125 136 127 207
Theft 3,192 2,728 2,235 2,169 2,945 2,223 2,922 3,269 3,566 3,503
Theft-motor vehicle 630 996 756 692 637 580 697 902 1,205 1,542
Traffic:
Non-criminal 6,520 5,489 5,926 5,074 5,573 4,372 3,421 3,411 2,044 2,300
Parking 5,238 3,737 3,822 3,777 3,477 4,425 2,990 3,013 2,928 2,584
Parks and Recreation
Athletic teams 358 321 328 306 312 315 15 158 259 344
Recreation activities 3,557 3,511 2,435 3,389 3,498 3,520 1,169 1,828 2,297 2,842
Golf course rounds 47,697 52,718 48,803 47,001 50,720 51,860 51,684 61,771 57,517 59,127
Senior center visits 40,715 38,485 36,636 35,454 32,464 77,378 35,417 35,133 31,593 37,103
Cultural activities 202 204 203 214 211 229 86 163 165 178
Museum audience served 13,968 13,535 14,380 13,570 15,153 14,638 3,463 6,441 5,061 15,613
Cemetery placements 250 237 281 264 263 253 273 353 331 326
Sources: Various city departments
*Includes the following permit types: Building,addition,tenant improvements,alterations and sign permits.
187
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 21
CAPITAL ASSET INDICATORS BY DEPARTMENT
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General City
Total area(square miles) 30 30 30 30 30 30 30 30 30 30
Public Works
Miles of streets 244 254 238 238 247 248 245 247 247 249
Number of streetlights(1) 6,211 6,362 6,552 6,581 6,738 3,429 3,526 3,589 3,628 3,677
Number of traffic signals 94 95 95 95 95 94 95 96 96 112
Utilities
Number of services 14,573 14,787 14,872 14,746 14,769 14,781 14,909 15,021 15,107 15,129
Miles of water lines(1) 316 320 321 323 347 283 287 288 290 290
Miles of sanitary sewer lines(1) 220 223 224 225 227 206 209 209 210 210
Miles of storm lines(1) 282 294 319 337 362 234 240 244 246 249
Number of fire hydrants(1) 3,559 3,580 3,577 3,595 3,664 3,014 3,115 3,132 3,171 3,208
Public Safety
Number of police stations 2 2 3 3 3 3 4 4 3 4
Parks and Recreation
Total park acreage 972 977 988.7 986 986 986 986 986 986 986
Number of softball/baseball fields 18 18 18 18 18 18 18 18 18 18
Number of soccer/football fields 4 4 4 4 4 4 4 4 4 4
Number of playgrounds 28 31 31 30 30 30 30 30 30 30
Sources: Various city departments
(1)This statistic has declined because it now represents City owned asset only effective in 2019.
188
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 22
NUMBER OF UTILITY CUSTOMERS BY CUSTOMER CLASS
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Water Customers by Class
Single Family Residential 11,822 11,973 12,054 12,010 12,010 12,028 12,078 12,132 12,162 12,183
Multifamily 1,000 1,003 1,002 1,009 1,012 1,010 1,023 1,027 1,027 1,028
Commercial 1,146 1,190 1,186 1,158 1,159 1,163 1,168 1,170 1,171 1,172
Mfr./Industrial 38 38 37 2 2 2 2 2 2 2
Schools 37 37 38 37 37 37 37 37 38 38
City Accounts 30 30 31 31 30 30 31 31 31 31
Irrigation 493 509 517 492 512 505 564 616 670 669
Total Retail Water Customers 14,566 14,780 14,865 14,739 14,762 14,775 14,903 15,015 15,101 15,123
Wholesale Water Customers 7 7 7 7 7 7 6 6 6 6
Sewer Customers by Class
Single Family Residential 12,631 12,890 13,091 13,124 13,176 13,234 13,319 13,368 13,411 13,438
Non-single Family Residential 2,713 2,728 2,725 2,724 2,728 2,731 2,749 2,758 2,761 2,759
Total Sewer Customers 15,344 15,618 15,816 15,848 15,904 15,965 16,068 16,126 16,172 16,197
Storm Customers by Class
Single Family Residential 16,013 16,222 16,200 16,566 16,610 16,665 16,723 16,820 16,867 17,269
Non-single Family Residential 1,670 1,679 1,913 1,671 1,691 1,696 1,702 1,753 1,759 1,762
Total Storm Customers 17,683 17,901 18,113 18,237 18,301 18,361 18,425 18,573 18,626 19,031
Sources: City of Auburn-Utility Billing
189
City of Auburn: 2023 Annual Comprehensive Financial Report Statistical Section
CITYOF
AUBURN.A..# *
WASHINGTON
190