HomeMy WebLinkAboutComplete ACFR Document - 2024 - V 07 22 2025 (1) -
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INANCIAL REPORT
CITY OF AUBURN
WASHINGTON
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year January 1, 2024 through December 31, 2024
CITY OF47.p.
AUBURN
WASHINGTON
Prepared by
City of Auburn Finance Department
Jamie Thomas, Finance Director
CITY
JBURN
WASHINGTON
City of Auburn: 2024 Annual Comprehensive Financial Report Table of Contents
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended December 31, 2024
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 32
Statement of Activities 33
Fund Financial Statements:
Governmental Funds
Balance Sheet 36
Reconciliation of Balance Sheet of Government Funds to the Statement of Net Position 37
Statement of Revenues, Expenses and Changes in Fund Balances 38
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Government Funds to the Statement of Activities 39
Statement of Revenues, Expenses and Changes in Fund Balances— Budget to Actual:
General Fund 40
American Rescue Plan Act (ARPA) Fund 41
Arterial Street Fund 42
Proprietary Funds:
Statement of Net Position 44
Statement of Revenues, Expenses, and Changes in Fund Net Position 45
Statement of Cash Flows 46
Fiduciary Funds:
Statement of Fiduciary Net Position 50
Statement of Changes in Fiduciary Net Position 51
Notes to the Financial Statements 53
Required Supplemental Information
Schedule of Proportionate Share of the Net Pension Liability PERS 1 113
Schedule of Proportionate Share of the Net Pension Liability PERS 2/3 113
Schedule of Proportionate Share of the Net Pension Liability LEOFF 1 113
Schedule of Proportionate Share of the Net Pension Liability LEOFF 2 113
Schedule of Employer Contributions PERS 1 115
Schedule of Employer Contributions PERS 2/3 115
Schedule of Employer Contributions LEOFF 2 115
Schedule of Changes in Total Pension Liability and Related Ratios 116
Schedule of Changes in Total OPEB Liability and Related Ratios 117
City of Auburn: 2024 Annual Comprehensive Financial Report Table of Contents
Page
Combining and Individual Fund Financial Statements and Schedules
Managerial Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances— Budget to Actual:
Cumulative Reserve Fund 120
Fire Pension Fund 121
Non-Major Government Funds:
Combining Balance Sheet 124
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 125
Non-Major Special Revenue Funds:
Combining Balance Sheet 128
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 129
Schedule of Revenues, Expenditures, and Changes in Fund Balances— Budget to Actual:
Arterial Street Preservation Special Revenue Fund 130
Drug Forfeiture Special Revenue Fund 131
Hotel/Motel Tax Special Revenue Fund 132
Housing &Community Development Special Revenue Fund 133
Local Street Special Revenue Fund 134
Mitigation Fees Special Revenue Fund 135
Recreation Trails Special Revenue Fund 136
Non-Major Debt Service Funds:
Combining Balance Sheet 138
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 139
Capital Project Funds:
Combining Balance Sheet 142
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 143
Permanent Fund:
Balance Sheet 146
Statement of Revenues, Expenditures and Changes in Fund Balance 147
Internal Service Funds:
Combining Statement of Net Position 150
Combining Statement of Revenues, Expenses, and Changes in Net Position 151
Combining Statement of Cash Flows 152
ii
City of Auburn: 2024 Annual Comprehensive Financial Report Table of Contents
III. STATISTICAL SECTION
Schedule Page
Net Position by Components 1 156
Changes in Net Positions 2 157
Fund Balances, Government Funds 3 158
Changes in Fund Balances, Government Funds 4 159
Tax Revenues by Source, Government Funds 5 160
Assessed Value by Type 6 161
Property Tax Data 7 162
Property Tax Levies and Collections 8 164
Principal Taxpayers— Property Taxes 9 165
Retail Tax Collections by Sector 10 167
Ratios of Outstanding Debt by Type 11 168
Computation of Legal Debt Margin 12 169
Legal Debt Margin Ratios 13 169
Computation of Net Direct and Estimated Overlapping Debt 14 170
Ratios of Net General Bonded Debt to Assessed Value 15 171
Pledged Revenue Bond Coverages 16 172
Population, Income and Housing Trends 17 173
Major Employers 18 174
Staffing Levels by Department 19 175
Operating Indicators by Department 20 176
Capital Asset Indicators by Department 21 177
Utility Customers by Customer Class 22 178
iii
City of Auburn: 2024 Annual Comprehensive Financial Report Table of Contents
CITY OF
AUBURN
WASHINGTON
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Serving since 2023
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Tracy Taylor-Turner Lisa Stirgus Yolanda Trout-Manuel
Serving since 2024 Serving since 2025 Serving since 2014
DEPARTMENT DIRECTORS
Administration I Vacant Human Resources I Candis Martinson
Anti-Homelessness I Kent Hay Innovation and Technology I David Travis
Chief Equity Office I Vacant Parks,Arts&Recreation Julie Krueger
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
Vacant 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 Julie Krueger
Director of Anti-Homelessness Director of Innovation and
Kent Hay Technology
David Travis
Chief Equity Office
Vacant
2
�- * MAYOR NANCY BACKUS
CICY OF _J_ * ® 25 WEST MAIN STREET,AUBURN.WA 98001
A M A■ 0' WI N r, et 253-931-3000
WASHINGTON ® AUBURNWAGOV
July 14, 2025
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 31,2024. 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, 2024. 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: 2024 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 2023 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 88,950 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: 2024 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 2024, Auburn was
providing approximately 42,009 jobs with an unemployment rate of 3.8%. By the end of 2024 the
unemployment rate had risen to 4.3%, which is below both the national and state figures, but an
indication of slowing economic growth.
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 900 people.
The City's total assessed property valuation has increased by 115% in 10 years from $8.4 billion in 2015
to $17.9 billion in 2024. 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
$2.09 per 1,000 in assessed valuation in 2014 to $1.40 per 1,000 in assessed valuation in 2024.
Sales tax revenue, excluding criminal justice and annexation sales tax credits, remained the same at $23.0
million in both 2023 and 2024, making 2024 the first year since 2009 with flat or declining revenue.
Sales tax revenue constitutes about 21%of total General Fund revenue.The City remains diligent knowing
that increasing operating costs are not sustainable when 21% of the revenue base is not increasing at the
same rate as costs.
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: 2024 ACFR Letter of Transmittal
water, sewer, and stormwater utility rates in 2022 and established rates to fund operating and capital
needs through 2024. A new rate study is underway for 2025-2026.
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: 2024 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 over the last 5 years
on the exemption amounts and the number of units available in return for the exemption:
Number of Property Tax
Year Exempted Units Abated
2024 355 $123,867
2023 481 146,190
2022 481 148,754
2021 255 77,838
2020 255 80,734
A use tax exemption was established for the 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: 2024 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 2024 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 2024. 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, 2023. This was the thirty-eight
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: 2024 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,
gA)
Jamie Thomas
Finance Director
9
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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, 2023
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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, 2024, 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,
2024, 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.
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Matters of Emphasis
As discussed in Note 19 to the financial statements, in 2024,the City adopted new accounting guidance,
Governmental Accounting Standards Board Statement No. 101, Compensated Absences. Our opinion is
not modified with respect to this matter.
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;
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• 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
• 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 as 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 and individual fund 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.
13
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.
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 July 14, 2025,
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
July 14, 2025
14
City of Auburn: 2024 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 $931.7 million,an increase of$63.5 million or 7.3%. Of this, a total of$629.6 million,
or 67.6% 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 $8.3 million of net position is restricted
for purposes of endowment and debt service. Of the remaining $293.8 million of net position, $37.2 million is
legally restricted, restricted by City policy for specific purposes,or is restricted for use by the City's utilities. $16.3
million in net pension assets are restricted, as required by GASB 68, and the remaining $240.3 million is
unrestricted.
• The net increase in government-wide net position during 2024 was $63.5 million. City-owned net investment
in capital assets increased by $33.1 million, restricted net position decreased by $1.0 million, and unrestricted
net position increased by $31.4 million.
• Business-type net position increased by $17.3 million to $335.2 million during 2024 mainly due to increase in
net investments in capital assets.
• Governmental fund balances at year-end totaled $152.9 million. Of this amount, $88.60 million, or 57.9%, is
unassigned and available to fund ongoing activities. Compared to 2023, total governmental fund balances
increased by $20.8 million, most of which is accounted for in unassigned fund balance. This increase reflects the
excess of revenues over expenditures during 2024.
• Total City debt payments for the year—excluding compensated absences, lease liabilities, subscription liabilities,
pension liabilities, and other post-employment benefits—amounted to $4.1 million. As of December 31, 2024,
total long-term liabilities stood at $95.2 million, reflecting a net decrease of $8.9 million from 2023. During the
year, the City repaid $3.2 million in bond principal and incurred $3.6 million in new loan obligations. A $4.0
million reduction in lease liabilities was recognized due to a lease termination. Pension and OPEB liabilities
declined by $2.1 million, while both subscription liabilities and amounts due to other governments decreased
by $0.7 million each. Refer to Note 7 for additional details on long-term liability activity.
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
15
City of Auburn: 2024 Annual Comprehensive Financial Report Management's Discussion and Analysis
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
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.
16
City of Auburn: 2024 Annual Comprehensive Financial Report Management's Discussion and Analysis
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 seventeen 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.
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.
17
City of Auburn: 2024 Annual Comprehensive Financial Report Management's Discussion and Analysis
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 40 through 42. 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".
In accordance with the provisions of GASB Statement No. 100, certain prior period amounts were corrected in this
report. These corrections relate to lease accounting under GASB Statement No. 87, the timing of interest expense
recognition under the accrual basis, and the application of revenue availability criteria under the modified accrual basis.
As a result, beginning balances have been restated to reflect the appropriate accounting treatment. For additional detail
regarding the nature and impact of these corrections, refer to Note 19 of the financial statements.
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 2023 to 2024 show an
increase in total net position of $63.5 million or 7.3%. The following is a condensed version of the government-wide
statement of net position with a comparison to 2023:
STATEMENT OF NET POSITION
Comparative Analysis of 2024 and 2023
Governmental Activities Business-Type Activities Total
As of 12/31/2023 As of 12/31/2024 As of 12/31/2023 As of 12/31/2024 As of 12/31/2023 As of 12/31/2024
Current and other assets $ 225,231,760 $ 251,637,205 $ 103,163,738 $ 109,024,432 $ 328,395,498 $ 360,661,637
Capital asset,net of accumulated Depreciation 398,590,841 405,384,906 263,095,510 278,855,884 661,686,351 684,240,790
Total Assets 623,822,600 657,022,111 366,259,249 387,880,316 990,081,849 1,044,902,427
Deferred Outflows of Resources 12,668,302 16,827,281 2,403,397 2,723,436 15,071,698 19,550,717
Long-term liabilities 55,974,971 50,303,628 32,506,957 33,180,499 88,481,928 83,484,128
Other Liabilities 21,211,763 20,055,938 9,446,721 9,099,433 30,658,484 29,155,372
Total Liabilities 77,186,734 70,359,567 41,953,678 42,279,932 119,140,412 112,639,500
Deferred Inflows of Resources 8,957,973 7,012,432 8,828,523 13,119,453 17,786,496 20,131,886
Net Position
Net Investment in Capital Assets 368,081,520 386,069,275 228,344,433 243,501,045 596,425,952 629,570,320
Restricted 55,148,194 53,241,188 7,703,800 8,545,059 62,851,994 61,786,246
Unrestricted 127,116,481 157,166,929 81,832,212 83,158,264 208,948,693 240,325,193
Total Net Position $ 550,346,195 $ 596,477,392 $ 317,880,445 $ 335,204,367 $ 868,226,639 $ 931,681,759
The largest component of the City's net position, $629.6 million or 67.6%, is its net investment in capital assets. This
balance is broken down by governmental activities ($386.1 million) and business type activities ($243.5 million).
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 increased by $33.1 million over 2023.
18
City of Auburn: 2024 Annual Comprehensive Financial Report Management's Discussion and Analysis
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, $240.3 million. This balance is
broken down by: governmental activities ($157.1 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 ($83.1 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 $53.2 million and is restricted for purposes such as contractual obligations on
capital project construction, revenue sources with external restrictions, debt service, opioid settlement,drug investigation
and enforcement, pension assets, 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 $63.5 million over 2023.
• Governmental activities contributed $46.1 million to the total increase in City net position. The largest factor in this
increase was an increase in unrestricted net position by $30.0 million, which mainly resulted from an increase in the
unassigned fund balance for the general fund. The second largest factor was an increase in net investment in capital
assets by $18.0 million.
• Governmental activity expenses increased by a net $3.5 million compared to 2023. The primary drivers of this
increase were higher expenditures in the economic environment and general government functions. In contrast,
health and human services expenditures declined by $2.0 million
• The business-type net position totaled $335.2 million, reflecting an increase of $17.3 million (5.4%) over 2023.
Business-type revenues rose by $13.6 million, including a $5.8 million increase in charges for services, largely due to
higher service fees related to a renewed contract with the City's solid waste hauler. Capital grants and contributions
increased by $5.1 million from 2023 as a result of a significant contribution from an external developer. Other
revenues increased by $2.7 million mainly due to an increase in FAA direct federal grant. Business-type expenses
increased by $6.4 million, primarily due to higher costs associated with the utility funds.
19
City of Auburn: 2024 Annual Comprehensive Financial Report Management's Discussion and Analysis
The following table 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 2024
Governmental Activities Business-Type Activities Total
2023 2024 2023 2024 2023 2024
Revenues
Program Revenues
Charges for Services $ 19,701,594 $ 19,285,675 $ 92,817,104 $ 98,699,146 $ 112,518,698 $ 117,984,821
Operating Grants and Contributions 10,836,967 15,256,510 - - 10,836,967 15,256,510
Capital Grants and Contributions 4,831,617 13,300,835 2,102,419 7,222,402 6,934,036 20,523,237
General Revenues - - - - - -
Property Tax 24,597,118 25,096,500 - - 24,597,118 25,096,500
Sales Tax 29,676,876 29,410,605 - - 29,676,876 29,410,605
Interfund Utility Tax 7,771,366 8,633,995 - - 7,771,366 8,633,995
Utility Tax 13,071,264 12,049,461 - - 13,071,264 12,049,461
Excise Tax 3,597,878 6,227,996 - - 3,597,878 6,227,997
Business and Occupation Tax 12,198,944 16,691,650 - - 12,198,944 16,691,650
Other Taxes 4,827,213 4,115,378 - - 4,827,213 4,115,378
Investment Earnings 6,960,578 6,764,555 3,937,300 3,843,490 10,897,878 10,608,044
Other Revenue 799,586 157,991 1,547,056 4,302,800 2,346,642 4,460,791
Total Revenues 138,870,999 156,991,150 100,403,879 114,067,838 239,274,878 271,058,988
Expenses
Culture and Recreation 16,735,629 17,541,128 - - 16,735,629 17,541,128
Economic Environment 5,251,455 6,769,342 - - 5,251,455 6,769,342
General Government 17,796,126 19,661,280 - - 17,796,126 19,661,280
Health and Human Services 3,432,638 1,368,619 - - 3,432,638 1,368,619
Interest on Long-Term Debt 731,092 667,390 - - 731,092 667,390
Physical Environment 4,631,448 5,099,970 - - 4,631,448 5,099,970
Public Safety 38,871,123 39,509,957 - - 38,871,123 39,509,957
Transportation 19,075,820 19,444,504 - - 19,075,820 19,444,504
Water - - 16,460,821 17,093,085 16,460,821 17,093,085
Sewer - - 28,027,531 31,779,474 28,027,531 31,779,474
Solid Wate - - 29,377,682 30,333,559 29,377,682 30,333,559
Storm - - 11,444,327 12,474,341 11,444,327 12,474,341
Airport - - 2,317,741 2,318,882 2,317,741 2,318,882
Cemetery - - 1,793,070 1,844,622 1,793,070 1,844,622
Total Expenses 106,525,331 110,062,190 89,421,172 95,843,964 195,946,504 205,906,154
Increase in net position before transfers 32,345,668 46,928,960 10,982,706 18,223,874 43,328,374 65,152,834
Transfers 1,151,660 555,540 (1,151,660) (555,540) - -
Change in net position 33,497,328 47,484,499 9,831,046 17,668,334 43,328,374 65,152,834
Net Position,January 1,as Previously Reported 516,960,973 550,346,195 306,838,044 317,880,445 823,799,018 868,226,639
Change in Accounting Principle - (1,353,302) (344,412) - (1,697,714)
Error Corrections (112,106) - 1,211,354 - 1,099,248 -
Net Position,January 1,Restated 516,848,867 548,992,893 308,049,398 317,536,033 824,898,265 866,528,925
Net position,December 31 550,346,195 596,477,392 $ 317,880,445 $ 335,204,367 $ 868,226,639 $ 931,681,759
20
City of Auburn: 2024 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
Utility Tax
13%
Sales Tax
19%
Business and Occupation Tax
11%
Excise Tax
4%
Capital Grants and
Contributions
8%
Property Tax
16%
Other Taxes Charges for Services
3% 12%
Other Revenue
4% Operating Grants and
Contributions
10%
The City's primary sources of governmental revenue are taxes (65%), charges for services (12%), and grants and
contributions (8%). Overall, governmental revenues increased by $18.8 million, or 13.6%, compared to 2023. Charges
for services remained relatively stable year over year; however, several other revenue categories experienced significant
growth:
• Capital grants and contributions increased by $8.5 million or 175%due to several large grants that were received
in 2024. These included grants from King County totaling $1.2 million for a new park (Cedar Lanes Pump
Track) and the purchase of property for open space, $1.5 million for the Washington State Department of
Commerce for the purchase of a consolidated resource center, $4.2 million in grants for various transportation
projects, and $1.6 million in infrastructure acquired through a newly annexed area,
• Operating grants and contributions rose by $4.4 million or 41% due to a $6.1 million settlement received from
Sound Transit for the condemnation of City parking space. This settlement is offset by a $1.7 million reduction
in ARPA funds that were earned in 2024 compared to 2023.
• Business and occupation tax grew by $4.5 million or 37%, which is the result of the first year of enforcement
and compliance efforts after implementing the new tax in 2022.
• Excise tax revenues increased by $2.6 million or 74% which is related to higher real estate excise tax collected
in 2024 over 2023. This tax is collected on 0.5% of real estate sales and is restricted to the use of specific
governmental capital acquisition, construction, and rehabilitation.
21
City of Auburn: 2024 Annual Comprehensive Financial Report Management's Discussion and Analysis
The following chart 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
c
$25
$20
$15
$10
$5 ill ._ I. i. __
$-
Gen
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 business-type activities, broken down by source:
Business Type Activity Revenues-By Source
Other Revenue,4%
Contibutiorsn6%
Investment Earnings. al Grants and
Contributioru,6°.f,
3% \
•
Charges for Services.
87%
22
City of Auburn: 2024 Annual Comprehensive Financial Report Management's Discussion and Analysis
The most significant revenue source is charges for services ($98.6 million in 2024). 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
($7.2 million in 2024) to help fund infrastructure projects.
The 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
$140
$120
$100
O $60
$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
$18
$16
$14
$12
0
0
$1a
$8
$6
$4
$2
Airport Cemetery
■Spendable Net Position ■Total Net Position
23
City of Auburn: 2024 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)
$40
$35
$30
$25
0
$20
$15
$10
$5
$- ii . .1 ■■
Water Sanitary Sewer Storm Drainage Solid Waste Airport Non-major Business-
Ty pe Activities
•Expenses ■Revenues
Generally, revenue collected from user fees of the City's utility systems exceed expenses. A full cost recovery model was
in effect for 2024.
The following chart shows the relative net position balances for each business-type fund:
Business Type Net Position-by Fund
Airport,5%
Cemetery,1%
Solid Waste,1%
Water.35%
Storm Drainage.27%
Sanitary Sewer,32%
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
24
City of Auburn: 2024 Annual Comprehensive Financial Report Management's Discussion and Analysis
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, 2024, the City's governmental funds had combined fund balances of $152.9 million, an increase of
$20.8 million or 15.8% over the previous year. This change was primarily a result of changes in fund balances in the
City's general fund ($16.9 million).
The following table shows the changes in fund balance between 2024 and 2023:
2024 2023 Difference
General Fund $ 95,988,840 $ 79,037,228 $ 16,951,612
Arterial Street fund 1,214,831 2,316,385 (1,101,553)
Capital Improvements Fund 19,389,938 15,669,290 3,720,648
Cemetery Endowment Fund 2,548,886 2,390,209 158,677
All Other Governmental Funds 33,789,805 32,675,326 1,114,479
Total $152,932,300 $132,088,437 $ 20,843,863
Of the total governmental fund balances, $88.6 million is unassigned. The remaining $64.3 million consists of
nonspendable, restricted, committed, and assigned fund balances, allocated as follows:
• $21.2 million is restricted, committed, or assigned for capital projects
• $32.7 million resides in special revenue funds and is restricted, committed, or assigned for specific purposes
• $7.4 million is nonspendable, restricted, committed, or assigned within the General Fund
• $0.5 million is assigned for debt service funds
• $2.2 million represents nonspendable principal balances in the endowment (permanent) fund
25
City of Auburn: 2024 Annual Comprehensive Financial Report Management's Discussion and Analysis
The following chart shows how the total $152.9 million governmental fund balances are allocated, by relative fund:
Governmental Funds-Fund Balance
All Other Governmental
Funds.
22%
Cemetery Endowment Fund.
2%
General Fund.
63%
Capital Improvement
Fund,
13%
Arterial Street Fund,
1%
The General Fund is the primary operating fund of the City,which accounts for 62.8%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 2024, the general fund had a fund balance of$96.0 million, $7.2 million of which is assigned or restricted,
and $88.6 million is unassigned. This increase of $16.9 million in fund balance over 2023 is attributed to the excess of
revenues over expenditures in 2024 by the same amount. The most significant contributors to the revenues of the City's
general fund were:
• Retail Sales and Use Tax $ 26.5 million
• Property Tax 24.7 million
• Business and Occupation Tax 11.6 million
• Utility tax 10.7 million
• Charges for Services 10.7 million
General Fund revenues exceeded budget expectations and largely recovered from the impact of COVID-19. Overall,
General Fund revenues recognized through 2024 totaled $109 million as compared to an annual budget of$94.8 million,
and were $14.2 million, or 15% above budget expectations. The largest contributor to this outcome was Business and
Occupation (B&O) tax revenue exhibiting an increase of $4.6 million over the budget. The second largest contributor
to this performance was retail sales and use tax showing an increase of $2.9 million or 12.5% above the budgeted
amount.
Overall, the favorable variance to the annual expense budget is $11 million. At the close of the year all departments
operated within their annual budgets, with some variances due to a decrease in professional services expenditures. Also
contributing to the favorable variance was a savings in salaries and benefits expenses as there were vacant regular full-
time positions in the City.
Other funds that had significant fund balances include:
• $1.2 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)
26
City of Auburn: 2024 Annual Comprehensive Financial Report Management's Discussion and Analysis
sales tax, and impact mitigation fees. The fund revenues and expenditures increased by 69% and 87%
respectively compared to the last year due to an increase in construction activity for the projects throughout the
year. There were 26 active projects in this fund in 2024.
• $19.4 million in the Capital Improvement fund, used for various governmental capital asset projects. The fund
balance increased by $3.7 million due to the collection of Real Estate Excise Tax that exceeds capital spending.
REET revenues in 2024 totaled $5.3 million which is $2.4 million more than 2023. According to King County
assessed valuations of property taxes, the City has increased in property value by 2.3%. Accompanied with
lower interest rates currently, the current climate for real estate sales is favorable for citizens within the State of
Washington. This is a sign of recovery after two years of declining annual REET revenues.
• $36.3 million in all other government funds:
o $16.0 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
decreased by $0.35 million between 2023 and 2024 due to lower collections of developer impact fees,
but continued spend down for budgeted capital items.
o The remaining $20.3 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 $1.6 million largely due to lower-than-expected spending on street
projects.
• General fund revenue increased by $8.4 million, sources of which are shown in the chart below. Property taxes
increased by $0.5 million, and excise taxes increased by $0.2 million from 2023. Over the same period, utility
tax decreased by $0.4 million, and B&O tax decreased by $0.4 million. Sales tax and interfund utility tax
increased by $0.5 million. Intergovernmental revenues increased by $0.4 million. However, licenses and permits
declined by $0.3 million, charges for services increased by $0.5 million, fines & forfeitures increased by $1.2
million, investment earnings decreased by $0.5 million and miscellaneous revenues increased by $6.6 million
mainly due to a $6.1 million Sound Transit settlement.
2024 Changes in General Fund Revenue-By Source
Miscellaneous
Investment Earnings
Fines and Forfeitures
Charges for Services
Intergovernmental
Licenses and Permits
Excise Tax
Utility Tax
Bus'ness and Occupation Tax
Interfund Utility Tax
Retail Sales&Use Tax
Property Tax
$(1,000,000) $- $1,oco,000 $2,oco,000 $3,000,000 $4,Doo,000 $s,000,000 $6,000,000 $7,00o,o00
27
City of Auburn: 2024 Annual Comprehensive Financial Report Management's Discussion and Analysis
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 $101.3 million to $115.4 million. Major
changes include an increase in expenditures associated with the economic environment and transfers out.
Reasons for the variances in the general fund between the final budget and actual results include:
• Actual General Fund revenues totaled $113.9 million,which is 4.4%above budget. Significant areas of favorable
variance include business and occupation tax,which exceeded budget by $4.6 million; sales and use taxes,which
exceeded budget by $2.9 million; investment earnings, which were $1.5 million higher than the budget; fines
and forfeitures, which were $2.7 above the budget; and utility taxes, which were $1.4 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 intergovernmental revenues, which were $0.4 million
below budget and transfers in, which were $9.4 million under budget.
• Actual general fund expenditures, including transfers out, totaled $99.7 million and were under budget by $15.6
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 employee attrition. Significant areas of
under-expenditure include reduced personnel costs—largely due to vacancies—and reduced professional services
contracts and other miscellaneous expenditures.
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, 2024,
totaled $684.2 million (net of accumulated depreciation), an increase of $22.5 million from 2023. 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:
• The increase in land is associated with governmental activities. Major additions are related to:
o The acquisition of property from Feenix Parkside LLC, with land valued at $1.6 million.
o A $0.7 million land purchase related to the CFT property acquired from 125 E Main, LLC.
o $0.4 million in demolition costs associated with the Auburn Theatre site.
o An increase of$1.1 million for right-of-way land and permanent easement parcels related to the Auburn
Way South project.
• $5.9 million net increase in construction projects related to governmental activities is attributable to the
completion of work in progress under twelve projects, which had a beginning balance of $2.1 million, along
with $8 million in expenditures across forty ongoing projects.
28
City of Auburn: 2024 Annual Comprehensive Financial Report Management's Discussion and Analysis
• $1.7 million net decrease in construction in progress related to business-type activities reflects $2.8 million
increase in construction expenses under twenty-five projects, offset by $4.5 million in completed work across
seventeen projects.
• Acquisition of property from Feenix Parkside LLC, with building valued at $4.6 million.
• $1.9 million of hangar upgrades related to Airport under the business-type activities.
• $15 million increase in improvements is primarily related to business-type activities. The additions result from
the completion of prior year capital improvement projects (CIP) in 2024, as well as developer contributions.
• $0.9 million of increase in intangibles is mainly associated with the water rights recorded under the business-
type activities.
• The decrease in lease assets by$4.2 is primarily the result of terminating the lease agreement with Feenix Parkside
LLC following the purchase of the property from the lessor.
• The net decrease of $0.8 million in the book value of subscription assets is mainly due to an increase in
accumulated depreciation resulting from recognition of the depreciation expense for the reporting period.
A summary of the City's capital assets follows:
Summary of Capital Assets (net of depreciation)
Governmental Activities Business-type Activities Total
As of 12/31/2024 As of 12/31/2023 As of 12/31/2024 As of 12/31/2023 As of 12/31/2024 As of 12/31/2023
Land 114,819,789 $ 110,906,160 $ 13,177,445 $ 13,177,445 $ 127,997,234 $ 124,083,605
Construction in progress 15,926,714 10,027,639 4,638,741 6,371,353 20,565,455 16,398,992
Buildings 47,200,063 44,130,932 3,238,649 1,381,726 50,438,711 45,512,658
Improvements other than buildings 9,794,928 9,418,951 246,995,857 232,310,805 256,790,785 241,729,756
Machinery and equipment 13,176,473 11,445,145 176,810 160,603 13,353,282 11,605,749
Intangibles 494,587 499,523 10,628,383 9,693,578 11,122,970 10,193,101
Infrastructure 200,403,476 203,535,801 - - 200,403,476 203,535,801
Lease Assets 120,803 4,332,770 - - 120,803 4,332,770
Subscription Assets 3,448,073 4,293,919 - - 3,448,073 4,293,919
$ 405,384,905 $ 398,590,842 $278,855,884 $ 263,095,510 $ 684,240,789 $661,686,352
More detailed information on capital assets is provided in Note 6.
Long-term Debt
Long-term debt levels remained relatively stable during the year. The City continues to manage its obligations prudently
and maintains an AA+ credit rating from Standard & Poor's for its general obligation debt. During the year, the City
entered into two new Public Works loans: $825,000 from the Washington State Department of Transportation to
support airport projects, and $2,817,191 from the Washington State Department of Health to fund water system
improvements.
Additionally, the City's lease agreement with Feenix Parkside LLC ended following the purchase of the underlying leased
asset, resulting in a $4.2 million reduction in lease liabilities. Additional information, including outstanding balances,
statutory debt limitations, and lease disclosures, is provided in Notes 3 and 7 to the financial statements.
Economic Factors
The past year realized small growth over 2023. 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 steady sales and use tax
revenue collections. Building permit activity and developer investments showed a decline for the third year in row in
2024 and indicates a decline in capital development. Real property values, which have fully recovered to pre-recession
levels by 2016, continued to grow and assessed valuation grew an additional 6.1% in 2024.
29
City of Auburn: 2024 Annual Comprehensive Financial Report Management's Discussion and Analysis
While the economy remained consistent in 2024 following a moderate 2023 and 2022, 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
2024 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.
30
City of Auburn: 2024 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: 2024 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
STATEMENT OF NET POSITION
December 31,2024
Governmental Business-Type
Activities Activities Total
ASSETS:
Cash and Cash Equivalents $ 71,713,473 $ 40,364,765 $ 112.078.238
Investments 66,243,002 35,918,090 102,161,092
Receivables:
Taxes 12,293,350 - 12,293,350
Customer Accounts 5,220,016 9,826,771 15,046,787
Other Receivables 1,056,636 581,913 1,638.550
Due From Other Governmental Unit 5.561,151 1,107,959 6,669,110
Internal Balances 286.883 (286,883) -
Materials and Supplies Inventory 527,300 476,676 1.003.976
Restricted Assets:
Temporarily Restricted:
Cash and Cash Equivalents 22,749,104 6,497,309 29,246,414
Due From Other Governmental Units 3,908,473 - 3,908,473
Permanently Restricted:
Cash and Cash Equivalents 524,690 - 524.690
Investment 1,699,408 - 1,699,408
Prepaids 386,952 - 386,952
Long-Term Contracts. Leases and Notes 3,880,174 12.120,971 16,001,145
Net Pension Asset 13,853,939 2,416,861 16,270,800
Investment in Joint Ventures 41,732,653 - 41,732,653
Depreciable Assets (Net of Accumulated Depreciation) 274,638,403 250,411,315 525,049,718
Non-Depreciable Assets 130,746,503 28,444,569 159,191,072
Total Assets 657,022,111 387,880,316 1,044,902,427
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflows from Bond Refunding 456.274 77,627 533,901
Deferred Outflows Related to Pensions 16.371.007 2.645.809 19.016.816
Total Deferred Outflows of Resources 16,827,281 2,723,436 19,550,717
LIABILITIES:
Accounts Payable 8,555,308 3,564,478 12,119,786
Other Liabilities Payable 438,820 - 438,820
Payable From Restricted Assets:
Accrued Interest - 110,538 110.538
Deposits - 275,359 275.359
Unearned Revenue 4.465.456 - 4.465.456
Net Pension Liability 1,375,377 1,665,912 3,041,289
Employee Leave Benefits-Compensated Absences:
Due Within One Year 2,067,010 453,710 2,520,720
Due in More Than One Year 3,517,270 772,041 4,289,311
Bonds and Other Debt Payable:
Due Within One Year 1,413,535 3,029,436 4,442,971
Due in More Than One Year 19,463,868 32,408,458 51.872.326
Lease and SBITA Payable:
Due Within One Year 682,475 - 682.475
Due in More Than One Year 2,832,856 - 2,832,856
Due to Other Governmental Units: 14,470,401 - 14,470,401
Total OPEB Liability
Due Within One Year 305,000 - 305,000
Due in More Than One Year 8.151,529 - 8.151.529
Other Non-Current Liabilities:
Total Firemen's Pension Liability 2,620,662 - 2.620.662
Total Liabilities 70.359.567 42.279.932 112.639.499
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflows Related to Leases 3,717,143 11,583,392 15,300,535
Deferred Inflows Related to Pensions 3,295,290 1,536,061 4,831,351
Total Deferred Inflows of Resources 7,012,432 13,119,453 20,131,886
NET POSITION:
Net Investment in Capital Assets 386,069.275 243,501,045 629.570.320
Restricted:
Capital Projects 35,328,293 - 35.328.293
Nonexpendable Permanent Endowment 2,224,098 - 2,224,098
Debt Service - 6,128,198 6,128,198
Tourist Promotion 459,003 - 459,003
Drug Investigation and Enforcement 829,915 - 829,915
Community Development Block Grant Program 54,699 - 54.699
Pension Asset 13,853,939 2.416,861 16.270.800
Opioid Settlement 491,241 - 491,241
Unrestricted 157.166,929 83.158.264 240.325.193
Total Net Position $ 596,477,392 $ 335.204.367 $ 931.681.759
The notes to the basic financial statements are an integral part of this statement.
32
City of Auburn: 2024 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
STATEMENT OF ACTIVITIES
For the Year Ended December 31,2024
Net(Expense)Revenue and Changes in Net
Program Revenues Position
Charges for Services Capital Grants and Operating Grants Governmental Business-Type
Expenses and Fines Contributions and Contributions Activities Activities Total
FUNCTIONS/PROGRAMS:
Primary Government
Governmental Activities
General Government $ 19.661,280 $ 6.588.668 $ 781.520 $ 11.303.961 $ (987.131) $ - $ (987.131)
Public Safety 39,509.957 5.035.623 14.867 3.098.247 (31.361.220) - (31.361.220)
Transportation 19,444.504 1.911.610 8.438.561 (9.094.333) - (9.094.333)
Physical Environment 5.099.970 532.839 517.759 (4.049.371) (4.049.371)
Culture and Recreation 17,541,128 3,624.514 1.327.691 236.438 (12.352.486) - (12.352.486)
Economic Environment 6,769,342 1.592.420 1.626.043 615.848 (2.935.031) - (2.935.031)
Health and Human Services 1,368,619 - 594.394 2.016 (772.209) (772.209)
Interest on Long-Term Debt 667.390 - - - (667.390) - (667.390)
Governmental Activities Total 110.062,190 19.285.675 13.300.835 15.256.510 (62.219.171) - (62.219.171)
Business-Type Activities
Water 17,093,085 19.302.872 2.183.574 - - 4.393.361 4.393.361
Sewer 31,779,474 32.372.867 1.027.006 - 1.620.399 1.620.399
Storm 12,474,341 12.675.854 4.011.822 - - 4.213.335 4.213.335
Solid Wate 30,333,559 30,650,181 - - - 316.622 316.622
Airport 2,318,882 1.884,176 - - - (434.706) (434.706)
Non-major(Cemetery) 1,844,622 1.813,196 - - - (31.427) (31.427)
Business-Type Activities Total 95,843.964 98.699.146 7.222.402 - - 10.077.584 10.077.584
Total Primary Government $ 205.906,154 $ 117.984.821 $ 20.523.237 $ 15.256.510 $ (62.219.170) $ 10.077.584 $ (52.141.586)
Governmental Business-Type
Activities Activities Total
General Revenues:
Taxes:
Business and Occupation $ 16.691.649 $ - $ 16.691.649
Excise 6.227.997 - 6.227.997
Interfund Utility 8.633.995 - 8.633.995
Fuel.Liquor.Marijuana&Other 4.115.378 - 4.115.378
Property 25.096.500 - 25.096.500
Retail Sales&Use 29.410.605 - 29.410.605
Utility 12.049.461 - 12.049.461
Gain on Sale of Capital Assets 106.653 - 106.653
Investment Earnings 6.764.555 3.843.490 10.608.045
Other Revenues (21.452) 4.302.800 4.281.348
Contributions to Endowment Funds 72.790 - 72.790
Transfers 555.540 (555.540) -
Total General Revenues.Contributions.Special Items.and Transfers 109.703.670 7.590.750 117.294.420
Net Change in Net Position 47.484.500 17.668.334 65.152.834
Net Positron,January 1,As Previously Presented 549.770.028 316.765.420 866.535.447
Change in Accounting Principles (1.353.302) (344.412) (1.697.714)
Error Corrections 576.167 1.115.025 1.691.192
Net Position-January 1.Restated 548.992.893 317.536.033 866.528.925
Net Position-Ending $ 596.477.392 $ 335.204.367 $ 931.681.759
The notes to the basic financial statements are an integral part of this statement.
33
City of Auburn: 2024 Annual Comprehensive Financial Report Basic Financial Statements
*
*
CITY OF
UBURN
WASHINGTON
34
City of Auburn: 2024 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.
35
City of Auburn: 2024 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31,2024
Other Total
American Capital Governmental Governmental
General Fund Rescue Plan Arterial Street Improvements Funds Funds
ASSETS:
Cash and Cash Equivalents $ 37,350,927 $ - $ 109,882 $ 16,201,374 $ 23,302,008 $ 76,964,192
Investments 50,436,763 - - 4,884,200 11,650,358 66,971,320
Receivables:
Taxes 12,151,013 - - - 142,337 12,293,350
Customer Accounts 2,079,215 - 849,936 1,574,078 637,819 5,141,048
Other Receivables 719,699 - - 97,410 222,910 1,040,020
Interfund Receivable 454,284 - 58,541 90,981 11,815 615,620
Inventories 48,295 - - - - 48,295
Due From Other Governmental Units 5,519,502 - 1,148,813 1,239,625 1,549,184 9,457,124
Long-Term Notes and Contracts 2,363,402 - 58,368 - 1,458,405 3,880,174
Prepaids 152,326 - - - - 152,326
Total Assets 111,275,426 - 2,225,541 24,087,668 38,974,834 176,563,469
LIABILITIES,DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 3,485,242 - 952,341 697,730 671,628 5,806,941
Customer Deposits 58,764 - - - - 58,764
Interfund Payable 90,981 - - - 508,541 599,522
Other Liabilities Payable 246,286 - - - - 246,286
Unearned Revenue - - 58,368 - - 58,368
Total Liabilities 3,881,273 - 1,010,709 697,730 1,180,169 6,769,881
Deferred Inflow of Resources:
Unavailabe Revenues-Other 8,861,414 - - 4,000,000 282,731 13,144,145
Deferred Inflows Related to Leases 2,543,899 - - - 1,173,244 3,717,143
Total Deferred Inflow of Resources 11,405,313 - - 4,000,000 1,455,974 16,861,288
Fund Balance:
Nonspendable 200,621 - - - 2,224,098 2,424,720
Restricted 2,339,920 - 1,214,831 17,413,766 18,043,312 39,011,830
Committed - - - - 12,710,633 12,710,633
Assigned 4,825,162 - - 1,976,172 3,360,648 10,161,982
Unassigned 88,623,136 - - - - 88,623,136
Total Fund Balance 95,988,840 - 1,214,831 19,389,938 36,338,691 152,932,300
Total Liabilities,Deferred Inflows And Fund Balances $ 111,275,426 $ - $ 2,225,541 $ 24,087,668 $ 38,974,834 $ 176,563,469
The notes to the basic financial statements are an integral part of this statement.
36
City of Auburn: 2024 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 31,2024
Total governmental fund balances as reported on this statement funds are included in governmental activities in the statement of net position. $152,932,300
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 391,442,052
Other non-current assets used in governmental activities not reported on fund financial statements
Accrual receivables such as interest 5,999
Investment in joint venture 41,732,653
Net pension asset 12,930,870
54,669,522
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 8,737,056
Accrued obligations not normally recorded in governmental funds
Bonds and loans payable including bond premium (20,877,403)
Compensated absences payable (5,022,985)
Deferred amount on bond refunding 456,274
Due to other governments (14,470,401)
Firemen's Pension Liability (2,620,662)
Lease and subscription liability (2,907,791)
Net deferred amounts related to pension 12,954,741
Net pension liability (506,583)
OPEB liability (8,456,529)
Other liabilities such as interest accruals (121,223)
(41,572,562)
Internal service funds are used by management to charge the cost of certain activities,such as insurance,fleet maintenance and information technology, 30,269,024
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 $596,477,392
The notes to the basic financial statements are an integral part of this statement.
37
City of Auburn: 2024 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 31,2024
Other Total
American Rescue Arterial Capital Governmental Governmental
General Fund Plan Street Improvements Funds Funds
REVENUES:
Taxes:
Business and Occupation $ 11,652,656 $ - $ - $ - $ - $ 11,652,656
Excise 682,529 - - 5,365,118 180,350 6,227,997
Interfund Utility 6,757,040 - - - 1,876,956 8,633,995
Property 24,756,748 - - - 345,483 25,102,231
Retail Sales&Use 26,523,039 - - - 2,887,566 29,410,605
Utility 10,702,008 - - - 1,347,452 12,049,461
Charges for Services 10,689,350 - 39,839 37,971 1,351,058 12,118,218
Fines and Forfeitures 3,749,253 - - - 177,400 3,926,653
Intergovernmental 7,073,804 4,218,477 3,720,621 2,674,960 2,673,153 20,361,016
Investment Earnings 3,454,171 - 103,526 819,702 1,526,252 5,903,651
Licenses and Permits 2,598,043 - 45,000 - - 2,643,043
Judgments,Settlements,Rents,and Other 8,198,424 - - 110,315 81,478 8,390,217
Total Revenues 116,837,065 4,218,477 3,908,987 9,008,066 12,447,148 146,419,742
EXPENDITURES:
Current:
Culture and Recreation 16,676,839 - - - - 16,676,839
Economic Environment 6,204,437 - - - 1,025,489 7,229,926
General Government 19,560,955 - - - - 19,560,955
Health and Human Services 1,230,553 - - - - 1,230,553
Physical Environment 5,869,441 - - - - 5,869,441
Security of Persons and Property 42,003,861 - - - 339,255 42,343,117
Transportation 4,778,279 - 6,250,342 - 6,268,653 17,297,275
Debt Service:
Principal 589,396 - 197,376 - 1,167,317 1,954,089
Interest and Other Costs 152,893 - 7,274 - 710,947 871,115
Capital Outlay 52,052 - - 8,696,153 3,352,381 12,100,585
Total Expenditures 97,118,705 - 6,454,993 8,696,153 12,864,042 125,133,893
Excess(Deficiency)of Revenues Over(Under)
Expenditures 19,718,360 4,218,477 (2,546,006) 311,913 (416,894) 21,285,849
OTHER FINANCING SOURCES (USES):
Insurance Recoveries 113,283 - - - - 113,283
Sales of Capital Assets 8,125 - - - - 8,125
Transfers In(Note 4) 4,527,665 - 1,444,453 4,708,525 3,776,760 14,457,402
Transfers Out(Note 4) (7,415,820) (4,218,477) - (1,299,790) (2,086,710) (15,020,797)
Total Other Financing Sources(Uses) (2,766,748) (4,218,477) 1,444,453 3,408,735 1,690,050 (441,986)
Net Change in Fund Balance 16,951,612 - (1,101,553) 3,720,648 1,273,156 20,843,863
Fund Balance,January 1,As Previously Presented 78,479,689 - 2,279,131 15,669,290 35,084,160 131,512,270
Error Corrections 557,538 - 37,254 - (18,625) 576,167
Fund Balance,January 1,Restated 79,037,228 - 2,316,385 15,669,290 35,065,535 132,088,437
Fund Balance-Ending $95,988,840 $ $ 1,214,831 $19,389,938 $36,338,691 $152,932,300
The notes to the basic financial statements are an integral part of this statement.
38
City of Auburn: 2024 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
For the Year Ended December 31,2024
Net change in governmental fund balance per Statement of Revenues,Expenditures and Changes in Fund Balance $20,843,863
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 12,100,585
Health and human resources capital outlay 119,830
Transportation capital outlay 12,090,242
Depreciation expense not recorded in governmental funds (18,949,014)
5,361,643
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. 92,242
Certain capital and joint venture activities that do not use or provide current financial resources but increase
net position. 2,240,437
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 liabilities 1,364,693
Subscription liability 356,404
Lease liability 232,991
1,954,089
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 5,038,993
Interest receivable (3,095)
Other unavailable revenue 380,820
Property taxes (5,731)
5,601,412
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. 4,227,582
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 13,299
Change in compensated absences payable (42,537)
Change in net pension liability or asset 4,205,631
Change in OPEB liability 850,814
5,027,207
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. 2,136,024
Total Transition Entries 26,640,637
Change in Net Position of Governmental Activities as reported on the Statement of Activities $ 47,484,500
The notes to the basic financial statements are an integral part of this statement.
39
City of Auburn: 2024 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, 2024
Budget Amounts
Variance with
Final Budget
Original Final Actual Positive
Budget Adopted Results (Negative)
REVENUES:
Taxes:
Excise $ 550,635 $ 550,635 $ 682,529 $ 131,894
Interfund Utility 6,959,667 5,989,667 6,757,040 767,373
Property 24,486,386 24,486,386 24,756,748 270,362
Retail Sales&Use 23,585,287 23,585,287 26,523,039 2,937,752
Utility 8,759,940 9,319,940 10,702,008 1,382,068
Business and Occupation 5,629,750 7,029,750 11,652,656 4,622,906
Charges for Services 9,411,337 11,082,070 10,689,350 (392,720)
Fines and Forfeitures 431,819 1,071,819 3,749,253 2,677,434
Intergovernmental 6,136,802 7,410,275 6,954,288 (455,987)
Investment Earnings 315,000 315,000 1,880,045 1,565,045
Licenses and Permits 2,568,898 2,568,898 2,598,043 29,145
Judgments,Settlements,Rents,and Other 1,342,180 1,423,180 2,096,424 673,244
Total Revenues 90,177,701 94,832,907 109,041,423 14,208,516
EXPENDITURES:
Current:
Culture and Recreation 15,902,772 16,919,864 16,676,839 243,025
Economic Environment 4,679,641 8,296,130 6,204,437 2,091,693
General Government 20,142,475 21,689,692 19,560,955 2,128,737
Health and Human Services 3,680,379 3,406,531 1,230,553 2,175,978
Physical Environment 5,515,682 6,013,322 5,869,441 143,881
Security of Persons and Property 45,887,001 46,525,952 41,792,801 4,733,151
Transportation 4,839,339 5,014,872 4,778,279 236,593
Debt Service:
Principal - - 589,396 (589,396)
Interest and Other Costs - - 152,893 (152,893)
Capital Outlay 10,000 90,900 52,052 38,848
Total Expenditures 100,657,289 107,957,263 96,907,646 11,049,617
Excess (Deficiency) of Revenues
Over (Under) Expenditures (10,479,588) (13,124,356) 12,133,778 25,258,134
OTHER FINANCING SOURCES (USES):
Insurance Recoveries 25,000 82,210 113,283 31,073
Sales of Capital Assets - - 8,125 8,125
Transfers In (Note 4) 11,719,188 14,203,054 4,790,709 (9,412,345)
Transfers Out (Note 4) (715,635) (7,458,010) (2,814,338) 4,643,672
Total Other Financing Sources (Uses) 11,028,553 6,827,254 2,097,778 (4,729,476)
Net Change in Fund Balance 548,965 (6,297,102) 14,231,556 20,528,658
Fund Balance-Beginning 9,475,710 45,719,546 45,719,546 -
Error Corrections - - 557,538 557,538
Fund Balance-January 1, restated 9,475,710 45,719,546 46,277,084 557,538
Fund Balance- Ending $ 10,024,675 $39,422,444 $ 60,508,641 $ 21,086,197
The Cumulative Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 33,631,520
The Fire, Relief&Pension Fund is combined with
the General Fund for purposes of GASB Statement 73 1,848,679
Fund Balance- Ending (GAAP) $95,988,840
The notes to the basic financial statements are an integral part of this statement.
40
City of Auburn: 2024 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, 2024
Budget Amounts
Variance with
Final Budget
Original Final Actual Positive
Budget Adopted Results (Negative)
REVENUES:
Intergovernmental $ 4,246,866 $ 4,246,866 $ 4,218,477 $ (28,389)
Total Revenues 4,246,866 4,246,866 4,218,477 (28,389)
EXPENDITURES:
Excess (Deficiency) of Revenues
Over (Under) Expenditures 4,246,866 4,246,866 4,218,477 (28,389)
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 4) (4,246,866) (4,246,866) (4,218,477) 28,389
Total Other Financing Sources (Uses) (4,246,866) (4,246,866) (4,218,477) 28,389
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.
41
City of Auburn: 2024 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, 2024
Budget Amounts
Variance with
Final Budget
Original Final Actual Positive
Budget Adopted Results (Negative)
REVENUES:
Charges for Services $ - $ 20,000 $ 39,839 $ 19,839
Intergovernmental 4,170,350 13,388,374 3,720,621 (9,667,753)
Investment Earnings 8,000 23,000 103,526 80,526
Licenses and Permits - - 45,000 45,000
Miscellaneous 125,000 125,000 - (125,000)
Total Revenues 4,303,350 13,556,374 3,908,987 (9,647,387)
EXPENDITURES:
Current:
Transportation 11,764,000 25,416,264 6,250,342 19,165,922
Debt Service:
Principal 197,400 197,400 197,376 24
Interest and Other Costs 7,400 7,400 7,274 126
Total Expenditures 11,968,800 25,621,064 6,454,993 19,166,071
Excess (Deficiency) of Revenues Over
(Under) Expenditures (7,665.450) (12,064,690) (2,546,006) 9,518,684
OTHER FINANCING SOURCES (USES):
Issuance of Debt - 3,000,000 - (3,000,000)
Transfers In (Note 4) 7,003,800 7,004,370 1,444,453 (5,559,917)
Total Other Financing Sources (Uses) 7,003,800 10,004,370 1,444,453 (8,559,917)
Net Change in Fund Balance (661,650) (2,060,320) (1,101,553) 958,767
Fund Balance- Beginning 690,081 2,279,131 2,279,131 -
Error Corrections - - 37,254 37,254
Fund Balance-January 1, restated 690,081 2,279,131 2,316,385 37,254
Fund Balance- Ending $ 28,431 $ 218,811 $ 1,214,831 $ 996,020
The notes to the basic financial statements are an integral part of this statement.
42
City of Auburn: 2024 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.
43
City of Auburn: 2024 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31.2024
Governmental
Enterprise Funds Activities
Non-Major
Sanitary Storm Solid Enterprise Funds Total Enterprise Internal Service
Water Sewer Drainage Waste Airport (Cemetery) Funds Funds
ASSETS:
Current Assets
Cash and Cash Equivalents $ 7,401,949 $ 21,586,029 $ 7,162,289 $ 2,579,960 $ 462,673 $ 1,171,866 $ 40,364,765 $ 18,023.075
Investments 10,085,150 9,936,500 14,925,350 - 485,545 485,545 35,918,090 971,090
Restricted Cash:
Bond Payments and Customer Deposits 2.343.951 414.201 662.733 - 139,374 - 3,560,259 -
Bond Reserve 2,058,758 290,549 587,743 - - - 2,937,050 -
Customer Accounts 2,553,462 4,615,635 1,943,057 714,399 218 - 9,826,771 78,969
Other Receivables 74.826 152.133 65,125 - 279,211 10.618 581.913 10.618
Due From Other Governmental Units 162,240 - 130,000 - 815,719 - 1,107,959 12,500
Due From Other Funds - - - - 59,369 - 59,369
Inventories 398,818 14,105 9,499 - 43,176 11,077 476.676 479.005
Prepaids - - - - - - - 234.626
Total Current Assets 25,079,154 37,009,152 25,485,796 3,294.358 2,285,285 1,679,106 94,832,853 19.809,882
Noncurrent Assets
Long-Term Contracts and Notes - 578,400 - - 11,542,571 - 12.120.971 Net Pension Asset 812,014 458,097 819,650 - 113,275 213,825 2,416,861 923,069
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 2,398,101 1,054,177 817,010 - 276,712 92,742 4,638,741 344,959
Intangible-Water Rights 10.628.383 - - - - - 10.628.383
Total Capital Assets Not Being Depreciated 14,310,008 2,749,200 6,754,024 - 4,195,760 435,578 28,444,569 344,959
Capital Assets Being Depreciated
Buildings and Equipment 2,509,599 1,343,980 282,112 496,618 5,008,045 981,840 10,622,193 36,759,749
Improvements Other Than Buildings 184.154,392 116,184.107 103.092,642 - 17,735,537 1,761,837 422.928.515 670.476
Right of Use(Leases) - - - - - - - 216.734
Right of Use(Subscriptions) - - - - - - - 1,111,077
Accumulated Depreciation (80.716,468) (48.363.628) (40,748.344) (496.618) (11,121,575) (1,692.761) (183.139,393) (25.160,141)
Total Capital Assets Being Depreciated 105.947.523 69.164.459 62.626.411 (0) 11.622.007 1.050.915 250.411.315 13.597.894
Total Noncurrent Assets 121,069,545 72,950,156 70,200,085 (0) 27,473,613 1,700,317 293,393,716 14,865,923
Total Assets 146,148,700 109,959,308 95,685,881 3,294,358 29,758,898 3,379,424 388,226,569 34,675,805
DEFERRED OUTFLOW OF RESOURCES:
Deferred Outflow from Bond Refunding 42,625 19,058 15,945 - . - 77,627
Deferred Outflow Related to Pensions 1,009,823 635,319 731304 70.567 53,594 144,202 2,645,809 985.303
Total Deferred Outflow Of Resources 1,052,448 654,377 748.249 70,567 53,594 144,202 2.723,436 985.303
LIABILITIES:
Current Liabilities
Current Payables 805,820 396,629 603,553 1,493,323 187,614 77,539 3,564,478 1,332,914
Claims Liabilities - - - - - - - 1,428,000
Loans Payable-Current 546,857 180.418 - - 77.161 - 804.436 -
Employee Leave Benefits 124,854 112,877 175,534 - 15,659 24,786 453,710 207,762
Leases and SBITA Payable-Current - - - - - - - 316,018
Revenue Bonds Payable-Current 1,456,720 281,098 487,183 - - - 2,225,000 -
Accrued Interest Payable 13,725 902 - - 7,586 - 22,213
Due to Other Funds 6,666 - 64,518 - - - 71,184 4,284
Payable From Restricted Assets.
Accrued Interest 66,048 7,933 14,344 - - - 88,325
Liabilities-Deposits 94.652 37.911 3.422 - 139.374 - 275.359 -
Total Current Liabilities 3,115,342 1,017,767 1,348,555 1,493,323 427,394 102,325 7,504,705 3,288,977
Noncurrent Liabilities
Employee Leave Benefits 212,454 192,073 298,693 - 26,645 42,176 772,041 353,533
Leases and SBITA Payable - - - - - - - 291,522
Loans Payable-Noncurrent 6.076.023 180.418 - - 747,839 - 7,004.280 Net Pension Liability 1,304,782 221,098 42,874 97,158 - - 1,665,912 868,794
Revenue Bonds Payable 19,449,843 2.024.153 3,930,182 - - - 25,404,178 -
Total Noncurrent Liabilities 27,043,102 2.617,742 4,271,749 97.158 774.484 42,176 34,846,411 1,513,849
Total Liabilities 30,158,443 3,635,509 5,620,304 1,590,481 1,201,878 144,501 42,351,116 4,802,825
DEFERRED INFLOW OF RESOURCES:
Deferred Inflow Related to Leases - - - - 11,583,392 - 11,583,392 -
Deferred Inflow related to Pensions 504.809 259.921 478.705 14.456 73.434 204.736 1.536.061 864.327
Total Deferred Inflow Of Resources 504,809 259,921 478,705 14,456 11,656,826 204,736 13,119,453 864,327
NET POSITION:
Net Investment in Capital Assets 92,773,694 69,267,963 64,980,129 - 14,992,767 1,486,492 243.501,045 13,335,314
Restricted:
Debt Service 4,239,028 657,574 1,231,595 - - - 6,128,198 -
Pension 812,014 458,097 819,650 - 113,275 213,825 2.416.861 923,069
Unrestricted 18,713,159 36,334,621 23.303,747 1,759,988 1,847,745 1,474,072 83,433,332 15,735,572
Total Net Position $116,537,895 $106,718,255 $90,335,121 $1,759,988 $16,953,787 $ 3,174,389 $335,479,435 $29,993,956
Adjustment to reflect the consolidation
of internal service funds related to
enterprise funds (275,068)
Net position of business-type activities $ 335,204,367
The notes to the basic financial statements are an integral part of this statement.
44
City of Auburn: 2024 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 31,2024
Governmental
Enterprise Funds Activities
Non-Major
Sanitary Storm Solid Enterprise Funds Total Enterprise Internal Service
Water Sewer Drainage Waste Airport (Cemetery) Funds Funds
OPERATING REVENUES:
Charges for Services $ 19,302,872 $ 32,372,867 $12,675,854 $30,650,181 $ 727,631 $ 1,813,196 $ 97,542,601 $ 20,374,258
Rental and Other Revenues - - - - 1,156,545 - 1,156,545 110,072
Total Operating Revenues 19,302,872 32,372,867 12,675,854 30,650,181 1,884,176 1,813,196 98,699,146 20,484,330
OPERATING EXPENSES:
Administration 7,348,504 4,513,043 4,866,693 4,251,782 415,154 659,040 22,054,216 2,515,599
Depreciation/Amortization 3,948,621 2,527,560 2,054,781 - 577,673 34,283 9,142,918 2,997,374
Operations&Maintenance 4,897,816 23,679,581 5,145,603 26,081,778 1,308,423 1,125,319 62,238,519 15,842,874
Other Operating Expenses - - - - 3,449 23,376 26,824 -
Total Operating Expenses 16,194,940 30,720,184 12,067,077 30,333,559 2,304,699 1,842,017 93,462,477 21,355,847
Operating Income or Loss 3,107,932 1,652,683 608,777 316,622 (420,523) (28,822) 5,236,669 (871,517)
NON-OPERATING REVENUE(EXPENSE):
Gain(Loss)on Lease Termination - - - - (2,551) - (2,551) -
Gain(Loss)on Sale of Capital Assets - - - - (4,046) (2,605) (6,651) 6,285
Interest Expense (612,115) (59,020) (126,537) - (7,586) - (805,258) (21,272)
Interest Revenue 972,213 1,394,326 917,291 236,298 235,117 88,245 3,843,490 866,291
Other Non-Operating Expenses (286,030) (171,787) (280,727) - - - (738,545) -
Grants,Insurance Recoveries,and Other 297,468 1,317 336,898 56,946 3,605,681 4,491 4,302,800 208,821
Total Non-Operating Revenue(Expense) 371,535 1,164,836 846,925 293,244 3,826,614 90,131 6,593,285 1,060,125
Income(Loss)Before Contributions and Transfers 3,479,467 2,817,518 1,455,702 609,866 3,406,091 61,309 11,829,954 188,608
CONTRIBUTIONS&TRANSFERS:
Capital Contribution 2,183,574 1,027,006 4,011,822 - - - 7,222,402 -
Transfers In(Note 4) - - - - - - - 1,710,059
Transfers Out(Note 4) (160,505) (160,517) (234,519) - - - (555,540) (591,124)
Total Contributions&Transfers 2,023,069 866,489 3,777,303 - - - 6,666,862 1,118,935
Change in Net Position 5,502,536 3,684,007 5,233,006 609,866 3,406,091 61,309 18,496,816 1,307,543
Net Position-January 1,As Previously Presented 110,309,117 103,006,296 85,004,440 1,150,764 13,557,015 3,135,769 316,163,400 28,831,467
Change in Accounting Principles (89,978) (79,562) (93,616) (641) (9,319) (22,689) (295,805) (145,054)
Error Corrections 816,220 107,514 191,291 - - - 1,115,025 Net Position,January 1,Restated 111,035,359 103,034,247 85,102,115 1,150,123 13,547,696 3,113,080 316,982,620 28,686,413
Net Position-Ending $ 116,537,895 $106,718,255 $90,335,121 $ 1,759,988 $16,953,787 $ 3,174,389 $ 335,479,435 $ 29,993,956
Change in net position from this statement 18,496,816
Adjustment to reflect the consolidation of internal service
fund activities related to enterprise funds (828,482)
Change in net position of business-type activities $ 17,668,334
The notes to the basic financial statements are an integral part of this statement.
45
City of Auburn: 2024 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31,2024
Page 1 of 2
Governmental
Non-Major Total Activities
Sanitary Storm Solid Enterprise Funds Enterprise Internal Service
Water Sewer Drainage Waste Airport (Cemetery) Funds Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Users $19,134,294 $32,253,510 $12,633,271 $30,064,584 $1,247,614 $ 1,813,196 $97,146,468 $ 20,476,258
Cash Paid to Suppliers for Goods&Services (8,408.058) (25,476,579) (5,364,247) (30,159,970) (1,408.956) (873,558) (71,691,367) (11,048,428)
Cash Paid to Employees (4.371.238) (2,818,015) (4,827,661) (23,452) (499.911) (906.085) (13,446,362) (6,796,822)
Cash Paid for Taxes - - - - - (23,376) (23,376) -
Other Cash Paid (286,030) (171,787) (280,727) - - - (738,545) -
Other Cash Received 297,468 1,317 11,148 - 19,833 4,491 334,257 198,821
Net Cash Provided(Used)by Operating Activities 6,366,435 3,788,444 2,171,785 (118,838) (641,420) 14,668 11,581,075 2,829,829
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating Grant 134,889 - 3,472 96,857 3,585,847 - 3,821,066 -
Transfers In - - - - - - - 1,710,059
Transfers Out (160,505) (160,517) (234,519) - - - (555,540) (591,124)
Net Cash Provided(Used)by Noncapital Financing Activities (25,615) (160,517) (231,047) 96,857 3,585,847 - 3,265,525 1,118,935
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITY:
Purchase of Capital Assets (9,383,429) (793,506) (3,778,672) - (4,901,925) (266,042) (19,123,575) (4,261,788)
Proceeds from Sales of Capital Assets - - - - - - - 89,068
Proceeds from Insurance Settlements - - - - - - - 10,000
Capital Contribution 390,304 773,803 283,742 - - - 1,447,850 -
Debt Proceeds 2,817,191 - - - 825,000 - 3,642,191 -
Debt Principal Payment (1.768.728) (557,084) (466,413) - - - (2,792,226) (359,313)
Interest Payment on Debt (905.520) (111,879) (193,034) - - - (1,210,433) (24,305)
Lease Principal Receipts - - - - 190,663 - 190,663
Lease Interest Receipts - - - - 131,431 - 131,431 -
Net Cash Provided(Used)for Capital and Related Financing Activities (8,850,182) (688,667) (4,154,376) - (3,754,831) (266.042) (17,714,098) (4,546,339)
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Investments - - - - (486,203) (486,203) (972,405) (972,405)
Interest Received 1,042,526 1,439,042 748,086 236,298 56,456 78,284 3,600,692 856,987
Net Cash Provided(Used)in Investing Activities 1,042.526 1,439,042 748,086 236,298 (429,746) (407,918) 2,628,287 (115,418)
Net Increase(Decrease)In Cash And Cash Equivalents (1.466.837) 4,378,303 (1,465,553) 214,318 (1,240.149) (659,292) (239,210) (712,993)
Cash and Cash Equivalents-Beginning of Year 13,271,494 17,912,477 9,878,318 2,365,642 1,842,196 1,831,158 47,101,285 18,736,068
Cash and Cash Equivalents-End of Year $11,804.658 $22,290,780 $ 8,412,765 $ 2,579,960 $ 602,047 $ 1,171,866 $46,862,075 $ 18,023,075
CASH AT END OF YEAR CONSIST OF:
Cash and Cash Equivalents 7.401.949 21,586,029 7,162.289 2,579,960 462,673 1,171,866 40,364.765 18,023,075
Restricted Cash:
Bond Payments and Customer Deposits 2,343,951 414,201 662,733 - 139,374 - 3,560,259 -
Bond Reserve 2,058,758 290,549 587,743 - - - 2,937,050 -
Total Cash $11,804,658 $22,290,780 $ 8,412,765 $ 2,579,960 $ 602,047 $ 1,171,866 $46,862,075 $ 18,023,075
The notes to the basic financial statements are an integral part of this statement.
46
City of Auburn: 2024 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31,2024
Page 2 of 2
Non-Major Governmental
Enterprise Total Activities
Sanitary Storm Solid Funds Enterprise Internal Service
Water Sewer Drainage Waste Airport (Cemetery) Funds Funds
RECONCILIATION OF NET OPERATING INCOME TO NET CASH PROVIDED BY
OPERATING ACTIVITIES
Operating Income or Loss $ 3,107,932 $1,652,683 $ 608,777 $316,622 $ (420,523) $(28,822) $ 5,236,669 $ (871,517)
ADJUSTMENTS TO RECONICLE OPERATING INCOME TO NET CASH PROVDED
(USED)BY OPERAING ACTIVITIES:
Change in Accounting Principles $ (89,978) $ (79,562) $ (93,616) $ (641) $ (9,319) $(22,689) $ (295,805) $ (145,054)
Depreciation and Amortization 3,948,621 2,527,560 2,054,781 - 577,673 34,283 9,142,918 2,997,374
Lease Revenue Classified as Operating Income and Financing Cash Flow - - (190,663) (190,663) -
Non-Operating Revenue(Expense) 11,437 (170,471) (269,579) - 17,282 4,491 (406,839) 198,821
Assets(Increases)Decreases
Customer Accounts (160,531) (95,742) (42,583) (585,598) 10,369 - (874,084) (12,587)
Due From Other Governmental Units - - - (376,388) - (376,388) 4,515
Inventory (40,331) (5,494) 1,120 - (340) (2,959) (48,003) 9,363
Lease Receivables - • - (4,656,572) (4,656,572) -
Other Receivables - - - - (37,753) - (37,753) -
Pension Asset 175,591 117,060 - - - - 292,651 39,020
Pension Deferred Outflows (230,672) (154,057) - - - - (384,729) (51,162)
Prepaids - • - - - (234,626)
Liability Increases(Decreases)
Current Payables (122,030) 128,367 (181,261) 155,459 (194,618) 4,576 (209,508) 531,556
Employee Leave Benefits 56,735 73,811 94,145 (4,680) 22,436 25,787 268,234 188,741
Pension Liability (88,568) (54,034) - - (142,602) (21,463)
Claims Payables - - - - - - - 236,000
Lease Deferred Inflows - - - - 4,612,715 - 4,612,715 -
Pension Deferred Inflows (193,723) (128,061) - - - - (321,784) (43,436)
Payable from Restricted Assets (8,048) (23,615) - - 4,281 - (27,382) -
Due to Other Funds - - - - 4,284
Total Adjustments 3,258,503 2,135,762 1,563,007 (435,460) (220,897) 43,490 6,344,406 3,701,346
Net Cash Provided(Used)by Operating Activities $ 6,366,435 $3,788,444 $ 2,171,785 $(118,838) $ (641,420) $ 14,668 $ 11,581,075 $ 2,829,829
SCHEDULE OF NONCASH INVESTING,CAPITAL AND
FINANCING ACTIVITIES
Capital Assets Acquired by Contributed Capital 1,793,270 253,203 3,728,080 - - 5,774,553 -
Capital Assets Acquired on Credit 6,666 - 64,518 - - - 71,184 -
Increase(Decrease)in Fair Vlue of Investment (71,650) (45,850) 364,150 - (658) (658) 245,335 (1,315)
Total Non Cash Investing,Capital and Financing Activities $ 1,728,286 $ 207,353 $ 4,156,748 $ - $ (658) $ (658) $ 6,091,071 $ (1,315)
The notes to the basic financial statements are an integral part of this statement.
47
City of Auburn: 2024 Annual Comprehensive Financial Report Basic Financial Statements
*
ITY O F A *C *
*
UBURN
WASHINGTON
48
City of Auburn: 2024 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.
49
City of Auburn: 2024 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn, Washington
STATEMENT OF FIDUCIARY NET POSITION
December 31, 2024
Custodial
Fund
ASSETS:
Cash and Cash Equivalents $ 13,394,120
Receivables:
Customer Accounts 15,191
Due from Other Governmental Units 12,209
Total Assets 13,421,520
LIABILITIES:
Current Payables 92,149
Total Liabilities 92,149
NET POSITION
Restricted for Other Governments & Organizations 13,329,371
Total Net Position $ 13,329,371
The notes to the basic financial statements are an integral part of this statement.
50
City of Auburn: 2024 Annual Comprehensive Financial Report Basic Financial Statements
City of Auburn,Washington
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
For the Year Ended December 31, 2024
Custodial
Funds
ADDITIONS:
Contributions:
Other Governments $ 4,328,453
Tax, Fines, Permits Collection for Other Governments 1,452,476
Amounts collected for other organizations and individuals 27,339
Investment Interest 540,377
Total Additions 6,348,645
DEDUCTIONS:
Administrative Expenses $ 37,014
Payment to City for Services 314,072
Tax, Fines, Permits &Misc distributed to other governments 1,540,673
Distributions to other organizations and individuals 28,091
Total Deductions 1,919,850
Change in Net Position 4,428,795
Net Position -Janaury 1 8,900,576
Net Position - December 31st $ 13,329,371
The notes to the basic financial statements are an integral part of this statement.
51
City of Auburn: 2024 Annual Comprehensive Financial Report Basic Financial Statements
CITY OF
AUBURN
WASHINGTON
52
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
City of Auburn
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2024
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 54
A. Reporting Entity 54
B. Basic Financial Statements 54
C. Measurement Focus, Basis of Accounting and Basis of Presentation 55
D. Budget and Budgetary Accounting 58
E. Assets, Liabilities, and Fund Balance 59
1. Deposits and Investments 59
2. Receivables 60
3. Interfund Receivables and Payables 60
4. Amounts Due From Other Governmental Units 60
5. Inventories and Prepaid Expenses 60
6. Restricted Assets 60
7. Interfund Transactions 61
8. Capital Assets 61
9. Pensions 61
10. Deferred Outflows/Inflows of Resources 62
11. Compensated Absences 62
12. Unearned Revenues 62
13. Net Position Components—Government-wide and Proprietary Funds 63
14. Fund Balance Components—Governmental Funds 63
NOTE 2 — DEPOSITS AND INVESTMENTS 65
A. Deposits 65
B. Investments 65
NOTE 3 — PROPERTY TAXES 67
NOTE 4— INTERFUND ACTIVITY 69
NOTE 5 — DUE FROM OTHER GOVERNMENTAL UNITS 72
NOTE 6—CAPITAL ASSETS AND RIGHT TO USE ASSETS 73
NOTE 7— LONG-TERM LIABILITIES 77
NOTE 8— LEASES (LESSORS) 83
NOTE 9— PENSION PLANS 88
NOTE 10—OTHER POST-EMPLOYMENT BENEFITS 98
NOTE 11 —ASSOCIATION OF WASHINGTON CITIES EMPLOYEE BENEFIT TRUST ("Trust") 100
NOTE 12 —CONSTRUCTION COMMITMENTS 101
NOTE 13 —CEMETERY ENDOWED CARE FUND 102
NOTE 14—JOINT VENTURES/RELATED PARTY 102
NOTE 15 —JOINTLY GOVERNED ORGANIZATION / RELATED PARTY 106
NOTE 16—CONTINGENCIES AND LITIGATIONS 107
NOTE 17— RISK MANAGEMENT& INSURANCE 107
NOTE 18—TAX ABATEMENTS 108
NOTE 19 —ACCOUNTING CHANGES AND ERROR CORRECTIONS 109
NOTE 20—SUBSEQUENT EVENTS 112
53
City of Auburn: 2024 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 2024, the City implemented the following new accounting and reporting standards issued by the
Governmental Accounting Standards Board (GASB).
• GASB Statement No. 100 —Accounting Changes and Error Corrections. An amendment to statement 62, the
standard clarifies practice by providing guidance for the classification and financial reporting treatment of various
accounting changes and error corrections. This statement enhances accounting and financial reporting
requirements for accounting changes and error corrections to provide more understandable, reliable, relevant,
and consistent, and comparable information for making decisions and assessing accountability.
• GASB Statement No. 101 — Compensated Absences. This statement supersedes statement 16, Accounting for
Compensated Absences, the updated guidance unifies the accounting for all types of compensated absences
under one model. The objective is to better meet the informational needs of financial statement users by
updating the recognition and measurement guidance for compensated absences and refine the related disclosure
requirements. It establishes standards of accounting and financial reporting for compensated absences and
associated salary-related payments, including certain defined contribution pensions and defined contribution
other postemployment benefits (OPEB).
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.
54
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
The government-wide financial statements report information on all 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.
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 Capita/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 and the fiduciary 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 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
55
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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.
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.
Grant revenues in governmental funds are recognized when all eligibility requirements are met and the revenues are
considered available, defined as collectible within 120 days after year-end.
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.
Proprietary funds distinguish operating revenues and expenses from non-operating items. 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.
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.
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.
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
56
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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 current net 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 street 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.
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.
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 in 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.
57
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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.
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 use the economic resources
measurement focus. 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 carry forward
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
58
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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 V. 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 31St, 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.
ORIGINAL AND SUPPLEMENTAL APPROPRIATIONS
Original Budget Revisions Final Budget
Governmental Funds:
General Fund $ 101,372,924 $ 14,042,349 $ 115,415,273
Total Governmental Funds 101,372,924 14,042,349 115,415,273
Special Revenue Funds:
American Rescue Plan Act(Arpa)Fund 4,246,866 - 4,246,866
Arterial Street Fund 11,968,800 13,652,264 25,621,064
Arterial Street Preservation Fund 5,250,000 5,537,176 10,787,176
Drug Forfeiture Fund 404,917 - 404,917
Hotel/Motel Tax Fund 177,100 85,000 262,100
Housing&Commmunity Development Fund 650,000 216,057 866,057
Local Street Fund 1,951,300 3,936,738 5,888,038
Mitigation Fees Fund 7,003,800 3,927,989 10,931,789
Recreational Trails Fund - 66,210 66,210
Total Special Revenue Funds 31,652,783 27,421,434 59,074,217
Total Budgeted Funds $ 133,025,707 $ 41,463,783 $ 174,489,490
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 Funds Financial Statements and Schedules.
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, 2024, the Washington State Local
Government Investment Pool (LGIP) was holding $132,130,243 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.
59
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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 the 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.
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 consists 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,
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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
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 they are 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
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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
In addition to assets,the statement of financial position includes a separate section for deferred outflows of resources.
Deferred outflows of resources represent a consumption of net assets that applies to future periods and will not be
recognized as an outflow (expense/expenditure) until that future period. The City of Auburn reports two items in
this category:
• Deferred outflows related to pensions, which include differences between expected and actual experience,
changes in assumptions, and differences between projected and actual returns on pension plan investments.
These amounts are deferred and amortized in accordance with GASB Statement No. 68.
• Deferred amounts on bond refunding, which represent the difference between the carrying amount of
refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the
remaining life of the old debt or the life of the new debt.
In addition to liabilities, the statement of financial position includes a separate section for deferred inflows of
resources. Deferred inflows of resources represent an acquisition of net assets that applies to future periods and will
not be recognized as an inflow of resources (revenue) until that time.The City of Auburn reports the following items
in this category:
• Deferred inflows related to pensions, which include differences between expected and actual experience,
changes in assumptions, and other elements outlined under GASB Statement No. 68.
• Deferred inflows related to leases, which result from lease agreements accounted for under GASB Statement
No. 87 and represent lease revenue to be recognized in future periods.
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. 101.
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.
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
13. Net Position Components —Government-wide and 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.
In the government-wide financial statements, including both governmental and business-type activities,it is the City's
policy to use restricted net position before unrestricted net position when an expense is incurred for purposes for
which both are available.
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 represents amounts that are not available for spending. This includes items
that are not in a spendable form, such as inventories and prepaid amounts, as well as amounts that are
legally or contractually required to be maintained 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.
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: 2024 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, 2024:
City of Auburn, Washington
Governmental Funds Balance Details
December 31,2024
Major
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvements Funds Funds
Nonspendable
Inventory and Prepaids $ 200,621 $ - $ - $ - $ 200,621
Permanent Cemetery Endowment - - - 2,224,098 2,224,098
Total Nonspendable 200,621 - - 2,224,098 2,424,720
Restricted
Arterial Street Preservation Fund - - - 759,948 759,948
City Tourism Promotion - - - 459,003 459,003
Community Development Block Grant Program - - - 54,699 54,699
Drug Investigation and Enforcement - - - 829,915 829,915
Fire Pension 1,848,679 - - - 1,848,679
Major Street Construction - 1,214,831 - - 1,214,831
Opioid Settlement 491,241 - - - 491,241
Recreational Trail Development - - - 49,511 49,511
REET 1 Allowable Projects - - 8,609,609 - 8,609,609
REET 2 Allowable Projects - - 8,804,157 - 8,804,157
Street and Fire Service Mitigation Fees - - - 15,890,236 15,890,236
Total Restricted 2,339,920 1,214,831 17,413,766 18,043,312 39,011,830
Committed
Arterial Street Presevation Fund - - - 4,402,991 4,402,991
Local Street Improvements - - - 8,307,642 8,307,642
Total Committed - - - 12,710,633 12,710,633
Assigned
Subsequent Year's Expenditures 4,825,162 - - - 4,825,162
Arterial Street Preservation Fund - - 1,976,172 228,101 2,204,273
Cemetery Capital Enhancement and Maintenance - - - 324,788 324,788
City Tourism Promotion - - - 25,543 25,543
Debt Service - - - 489,284 489,284
Downtown Infrastructure Improvements - - - 368,009 368,009
Drug Investigation and Enforcement - - - 58,667 58,667
Local Street Improvements - - - 317,996 317,996
Parks and Trails Construction Projects - - - 1,428,786 1,428,786
Recreation Trail Development - - - 4,732 4,732
School Administration Fees - - - 114,742 114,742
Total Assigned 4,825,162 - 1,976,172 3,360,648 10,161,982
Unassigned
Unassigned 88,623,136 - - - 88,623,136
Total Unassigned 88,623,136 - - - 88,623,136
Total $95,988,840 $1,214,831 $19,389,938 $36,338,691 $152,932,300
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
NOTE 2 — DEPOSITS AND INVESTMENTS
A. Deposits
On December 31, 2024, the carrying amount of the City's cash demand deposits with Key Bank totaled $11,270,605
while the bank balance was $17,884,935. In addition, the balance of the City's interest-bearing checking account with
Pacific Premier Bank totaled $ 11,825,014. 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, 2024, the City had the following investments amortized, at cost:
Amortized
Investment Type Cost
State investment pool (LGIP) $ 132,130,243
$ 132,130,243
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.
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, 2024, the City had the following investments measured at fair value:
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
Fair Value Measurements Using
Quoted Prices in Active Significant Other Significant
Markets for Identical Assets Observable Inputs Unobservable Inputs
Investments by Fair Value Level 12/31/2024 (Level 1) (Level 2) (Level 3)
U.S. Agency $ 69,923,600 $ 69,923,600 $ - $ -
U.S. Treasury 33,936,900 33,936,900 - -
Total Investments by Fair Value Level $103,860,500 $ 103,860,500 $ - $ -
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, 2024:
Cash and Investments
Reconciliation to the Government-Wide Statement of Net Position
Cash and Cash Equivalents $ 112,078,238
Investments 102,161,092
Temporarily Restricted:
Cash and Cash Equivalents 29,246,414
Permanently Restricted:
Cash and Cash Equivalents 524,690
Investments 1,699,408
Total $ 245,709,842
Bank Deposits $ 23,095,619
Investments not measured at fair value 132,130,243
Investments measured at fair value 103,860,500
Petty Cash Funds 17,600
Less: cash held in custodial funds (13,394,120)
Total $ 245,709,842
Interest Rate Risk
The 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
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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.
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 Bond
Pool Investments Total
Governmental Funds $ - $ 66,971,320 $ 66,971,320
Enterprise Funds - 36,889,180 36,889,180
Local Government Investment Pool 132,130,243 - 132,130,243
Total $ 132,130,243 $ 103,860,500 $ 235,990,743
NOTE 3 - PROPERTY TAXES
Property taxes received during tax year 2024 were $25,102,231 including collection of prior year delinquent assessments.
Property taxes assessed for collection in tax year 2024 were based on a regular tax levy of $1.39068 per $1,000 on a
total 2023 assessed value of $17,869,840,473.
For the levy year 2024, to be received in 2025, the City's regular tax levy is $1.39696 per $1,000 on a 2024 assessed
valuation of $19,438,866,350 as of December 31, 2024, for a total regular levy of $25,607,602. 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
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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, 2024, 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 $ 291,582,995 $ 194,388,664 $485,971,659 $ 485,971,659 $ 1,457,914,977
Outstanding indebtedness (32,421,975) - - - (32,421,975)
Margin available $ 259,161,020 $ 194,388,664 $485,971,659 $ 485,971,659 $ 1,425,493,002
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 May 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.
Special levies approved by the voters are not subject to the above limitations.
Property taxes are recorded as receivables when levied. In the governmental fund financial statements, revenues are
recognized when they become measurable and available; amounts not available at year-end are reported as deferred
inflows of resources. Since state law allows for the sale of property for failure to pay taxes, no estimate of uncollectible
taxes is made.
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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, 2024, were as follows:
Transfer To
Capital Non-major
Improvement Arterial Street Governmental Internal Service
General Fund Fund Fund Funds Funds Total
General Fund $ - $ 4,414,401 $ 52,050 $ 1,522,235 $ 1,427,133 $ 7,415,820
E Capital Improvement Fund - - 17,258 1,116,479 166,053 1,299,790
American Rescue Plan Act Fund 4,218,477 - - - - 4,218,477
Non-major Governmental Funds - 273,769 1,375,144 437,796 - 2,086,710
Water Fund 78,396 - - 50,000 32,109 160,505
co Sanitary Sewer 78,395 - - 50,000 32,122 160,517
Storm Drainage 152,397 - - 50,000 32,122 234,519
Internal Service Funds - 20,354 - 550,250 20,520 591,124
Total $ 4,527,665 $ 4,708,525 $ 1,444,453 $ 3,776,760 $ 1,710,059 $ 16,167,461
The City made the following transfers during the year ending December 31, 2024:
General Fund:
• $3,831,686 from the General Fund (Cumulative Reserve) to the Capital Improvements Fund for the ACRC
project ($3,800,000), the Auburn Arts &Culture Center project ($27,000), and parking lot replacement
design ($4,686).
• $878,972 to the Local Revitalization fund for downtown infrastructure improvements ($578,972) and the
Auburn Avenue Theater demolition ($300,000).
• $582,715 to the Capital Improvements fund for 2024 Neighborhood improvements ($456,190), the Auburn
Arts &Culture Center project ($100,000), and traffic calming ($26,525).
• $533,417 from the General Fund (Cumulative Reserve) to the Equipment Rental Capital projects fund for the
police patrol vehicle fleet expansion ($527,760) and the M&O Facility Improvements project ($5,657).
• $374,264 to the 2016 Combined Refunding fund for Golf/Cemetery debt service payments.
• $180,273 to the Innovation and Technology Capital Projects fund for Multimedia upgrades for Council
chambers.
• $162,464 to the Local Street fund for the 2023 Local Street Preservation project ($114,297) and the D St SE &
23rd St storm improvements project ($48,167).
• $161,952 to the Innovation &Technology fund for security camera updates ($68,937), to support an IT
Security Engineer position ($91,395) as well as additional personnel costs for the City's B&O program ($1,070)
and a DEI Analyst ($550).
• $143,274 to the Equipment Rental Capital Projects fund for the police vehicle fleet expansion program
($143,052) as well as M&O facility improvements ($222).
• $116,450 from the General Fund (Cumulative Reserve) to the Innovation and Technology fund for process
improvements to the City's HR system ($102,050) and for the City's Financial ERP system replacement
($14,400).
• $106,536 to the Municipal Parks Construction fund for Forest Villa Park improvements ($99,936), and Les
Gove Spray Park improvements ($6,600).
• $79,844 from the General Fund (Cumulative Reserve) to the Innovation and Technology Capital Projects fund
for police patrol vehicle fleet expansion.
• $79,729 to the Equipment Rental fund to support a new Mechanic position.
• $92,109 to the Facilities fund for duct cleaning.
• $52,050 to the Arterial Streets fund for the Auburn Way S Roundabout project.
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
• $40,085 from the General Fund (Cumulative Reserve) to the Facilities fund for the Golf Course security
cameras.
Capital Improvement Fund:
• $17,258 to the Arterial Street fund for the Lea Hill ITS Expansion.
• $386,928 to the Local Street fund to support the 2023 Local Street Preservation project.
• $699,000 to the 2020 LTGO A&B Refunding Bonds fund for debt service payments.
• $30,551 to the Municipal Parks Construction fund to support the Fairway Drainage Improvement project
($30,000) and the 12th Street Parking Lot Improvement project ($551).
• $160,645 to the Facilities fund for the Justice Center roof replacement.
• $5,408 to the Equipment Rentals Capital Projects fund for the M&O Facilities Improvements project.
American Rescue Plan Act Fund:
• $4,218,477 to the General Fund to mitigate public safety expenses.
Mitigation Fund:
• $1,375,144 to the Arterial Streets fund to support multiple capital projects.
• $371,586 to the Municipal Parks Construction fund for multiple capital projects.
• $273,769 to the Capital Improvement fund for multiple capital projects.
Non-major Governmental Funds:
• $66,210 from the Recreational Trails fund to the Municipal Parks Construction fund for the Game Farm Trail
Connections project.
Water Fund:
• $78,396 to the General Fund to support multiple new positions in the City.
• $50,000 to the Local Street fund for utility trench mitigation.
• $15,005 to the Innovation and Technology fund to support a new IT Security Engineer position.
• $13,090 to the Equipment Rental fund to support a new Mechanic position.
• $4,014 to the Equipment Rental Capital Projects fund for the M&O Facilities Improvements project.
Sanitary Sewer:
• $78,395 to the General Fund to support multiple new positions in the City.
• $50,000 to the Local Street fund for utility trench mitigation.
• $15,005 to the Innovation and Technology fund to support a new IT Security Engineer position.
• $13,090 to the Equipment Rental fund to support a new Mechanic position.
• $4,027 to the Equipment Rental Capital Projects fund for the M&O Facilities Improvements project.
Storm Drainage:
• $152,397 to the General Fund to support multiple new positions in the City ($78,397), and for median
maintenance ($74,000).
• $50,000 to the Local Street fund for utility trench mitigation.
• $15,005 to the Innovation and Technology fund to support a new IT Security Engineer position.
• $13,090 to the Equipment Rental fund to support a new Mechanic position.
• $4,027 to the Equipment Rental Capital Projects fund for the M&O Facilities Improvements project.
Internal Service Funds:
• $550,250 from the Facilities fund to the 2020 LTGO A&B Refunding Bonds fund for debt service payments.
• $20,520 from the Innovation and Technology fund to the Facilities fund for surveillance cameras at the Golf
Course.
• $20,354 from the Facilities fund to the Capital Improvements fund for the M&O HVAC replacement.
70
City of Auburn: 2024 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 or net position.
Due From
Other
General Arterial Capital Governmental
Fund Street Improvements Funds Airport Total
General Fund - - 90,981 - - 90,981
O Other Governmental Funds 450,000 58,541 - - - 508,541
F-
a, Water - - - 6,666 - 6,666
O• Strom Drainage - - - 5,149 59,369 64,518
Internal Service 4,284 - - - - 4,284
454,284 58,541 90,981 11,815 59,369 674,989
All interfund loans are considered short-term cash loans.
$450,000 of the interfund loan to Housing &Community Development was paid to cover authorized expenditures
while the City waited for reimbursement of federal Community Development Block Grant monies.
71
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
NOTE 5 - DUE FROM OTHER GOVERNMENTAL UNITS
As of December 31, 2024, the City had receivables due from other governmental units as follows:
General Fund:
Auburn School District 30,997
Cascade Bicylce Club 19,272
King County District Court 1,543,038
King County Parks-Grants 43,132
King County Real Estate Excise Taxes 1,088,321
Pierce County-Real Estate Excise Taxes 22,803
WA State Criminal Justice Training 60,000
WA State Treasurer-Misc.Taxes 642,876
WA State Treasurer-Sales&Use Taxes 1,870,930
WA State Treasurer-Utility Taxes 173,583
Other(Four Items) 24,550
Total General Fund 5,519,502
Arterial Street Fund:
WA State Treasurer-Motor Vehicle Sales Tax 39,429
WA Dept.of Transportation-Grants 878,279
WA Public Works Board-Grants 231,105
Total Arterial Street Fund 1,148,813
Hotel/Motel Tax Fund:
WA State Treasurer-Lodging Taxes 11,977
Total Hotel/Motel Tax Fund 11,977
Arterial Street Preservation Fund:
WA Dept.of Transportation-Grant 129,350
WA State Treasurer-Public Transportation Tax 219,344
Total Arterial Street Preservation Fund 348,693
Drug Forfeiture Fund:
City of Puyallup-TNET 6,114
Pierce County Sheriffs Department-TNET 9,953
Total Drug Forfeiture Fund 16,066
Housing&Comm.Development:
HUD-Grant 82,854
82,854
Recreational Trails:
WA State Treasurer-LRF Sales Tax 520
520
2020 LTGO A&B Refunding Bonds Fund:
WA State Treasurer-LRF Sales Tax Credit 29,149
Total Hotel/Motel Tax Fund 29,149
Municipal Park Construction:
King County Dept of Natural Resources-Grants 700,000
King County Parks-Grants 359,925
Total Municipal Park Construction Fund 1,059,925
General Government Capital Improvements:
Pierce County-Real Estate Excise Taxes 26,317
WA Dept.of Transportation-Grants 384,547
WA State Historical Society-Grant 828,761
Total General Government Capital Improvements Fund 1,239,625
Storm Drainage Fund:
WA State Dept of Ecology 130,000
Total Storm Drainage Fund 130,000
Water Fund:
WA State Military Dept-Grant 162,240
Total Storm Drainage Fund 162,240
Airport Fund:
Federal Aviation Administration-Grant 793,397
WA Dept.of Transportation-Grant 22,321
Total Airport Capital fund 815,719
Facilities Fund:
City of Federal Way 12,500
Total Airport Capital fund 12,500
Total 10,577,582
Reconciliation to government-wide statement of net position:
Total above due from other governmental units 10,577,582
Total due from other governmental units,
government-wide statement of net position 10,577,582
72
City of Auburn: 2024 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, 2024, is as follows:
Schedule of Asset Activity
Capital Assets
Balance Decreases/ Balance
1/1/24 Increases Adjustments 12/31/24
Governmental activities:
Capital assets, not being depreciated:
Land $ 110,906,160 $ 3,913,629 $ - 114,819,789
Construction in progress 10,027,639 13,980,116 (8,081,041) 15,926,714
Total capital assets, not being depreciated 120,933,799 17,893,745 (8,081,041) 130,746,503
Capital assets, being depreciated:
Buildings 73,650,993 4,569,533 (430,434) 77,790,092
Improvements other than buildings 29,201,516 1,332,072 (118,385) 30,415,203
Machinery and equipment 38,388,887 4,768,443 (1,320,433) 41,836,897
Intangibles 564,093 - - 564,093
Infrastructure 463,853,787 12,690,986 (11,815) 476,532,958
Lease Assets 4,901,859 - (4,685,125) 216,734
Subscription Assets 4,910,310 - (174,494) 4,735,816
Total capital assets being depreciated 615,471,445 23,361,034 (6,740,686) 632,091,793
Less:accumulated depreciation for:
Buildings (29,520,061) (1,500,403) 430,435 (30,590,029)
Improvements other than buildings (19,782,565) (955,596) 117,885 (20,620,275)
Machinery and equipment (26,943,741) (2,585,746) 869,063 (28,660,424)
Intangibles (64,570) (4,936) - (69,506)
Infrastructure (260,317,986) (15,811,496) - (276,129,482)
Lease Assets (569,089) (300,533) 773,690 (95,932)
Subscription Assets (616,391) (787,680) 116,328 (1,287,743)
Total accumulated depreciation (337,814,403) (21,946,389) 2,307,401 (357,453,391)
Total capital assets, being depreciated, net 277,657,042 1,414,644 (4,433,285) 274,638,401
Governmental activities capital assets, net $ 398,590,841 $ 19,308,389 $ (12,514,326) $405,384,905
Business-type activities:
Capital assets, not being depreciated:
Land 13,177,445 - - 13,177,445
Water Rights 9,693,578 934,805 - 10,628,383
Construction in progress 6,371,353 20,001,077 (21,733,689) 4,638,741
Total capital assets, not being depreciated 29,242,377 20,935,882 (21,733,690) 28,444,569
Capital assets, being depreciated:
Buildings 6,085,435 1,955,958 - 8,041,393
Improvements other than buildings 399,371,328 23,771,440 (214,253) 422,928,515
Machinery and equipment 2,598,714 39,800 (57,714) 2,580,800
Total capital assets being depreciated 408,055,478 25,767,197 (271,967) 433,550,708
Less:accumulated depreciation for:
Buildings (4,703,710) (99,035) - (4,802,745)
Improvements other than buildings (167,060,523) (9,021,869) 149,733 (175,932,659)
Machinery and equipment (2,438,111) (22,015) 56,136 (2,403,990)
Total accumulated depreciation (174,202,344) (9,142,918) 205,869 (183,139,394)
Total capital assets, being depreciated, net 233,853,133 16,624,280 (66,098) 250,411,314
Business-type activities capital assets, net $ 263,095,510 $ 37,560,162 $ (21,799,788) $278,855,884
73
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
For the year ended 12/31/2024, the financial statements include the adoption of GASB Statement No. 87, Leases. The
primary objective of this statement is to enhance the relevance and consistency of information about governments'
leasing activities. This statement establishes a single model for lease accounting based on the principle that leases are
financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability
and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow
of resources. For additional information, refer to the disclosures below.
Lease Assets by Category
Balance Decreases/ Balance
1/1/24 Increases Adjustments 12/31/24
Governmental activities:
Lease assets, being amortized:
Buildings $ 4,685,125 $ - $ (4,685,125) $ -
Machinery and equipment 216,734 - - 216,734
Total lease assets being amortized 4,901,859 - (4,685,125) 216,734
Less: accumulated amortization for:
Buildings (515,794) (257,897) 773,690 -
Machinery and equipment (53,295) (42,636) - (95,931)
Total accumulated amortization (569,089) (300,533) 773,690 (95,931)
Total lease assets, being amortized, net 4,332,770 (300,533) (3,911,435) 120,803
Governmental activities lease assets, net $ 4,332,770 $ (300,533) $ (3,911,435) $ 120,803
No lessee-type activity is qualified to be recognized as a lease asset under the business-type activities.
The following discloses additional information for the lease agreements classified under governmental activities:
Lessor:
Business Systems
Total
Sharp Feenix Parkside LLC(1) Y
Asset Information:
Value of the Right to Use Asset $ - $ 216,734 $ 216,734
Accumulated Amortization - (95,931) (95,931)
Book Value $ - $ 120,803 $ 120,803
Liability Information:
Lease Liability(Note 7) $ - $ 122,303 $ 122,303
Payment 22,866 40,024
Non-lease Portion - 18,864
Interest Rate 1.481% 2.157%
Other Information:
Underlying Asset Building Equipment
Payment Frequency Monthly Semi Annual
Lease Contract Date January 2020 May 2022
Lease Commencement Date February 2020 May 2022
Lease Description 22,308 square feet of Right to use copy
rentable area machines
1) Lease agreement terminated in 2024.
74
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
There were no commitments under leases before the commencement of the lease terms.
For the year ended 12/31/2024, 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. As of 12/31/2024, the City of Auburn had 11 active subscriptions. No subscription activity is qualified
to be recognized as an asset under the business-type activities.
Note 7 provides the details of subscription liabilities associated with the subscription assets.
The following two tables provide the details of the subscription terms and assets:
Contract Subscription Subscription Internal
Subscription Fund Commencement Date Start Date End Date Borrowing Rate
ADManager Plus Information Services 10/22/2023 10/22/2023 02/21/2028 3.53%
Autodesk Subscription Information Services 01/15/2023 01/15/2023 01/14/2027 2.68%
Axon Software General 12/01/2021 01/01/2023 11/30/2031 2.80%
Core HR Subscription Information Services 01/01/2023 01/01/2023 12/31/2025 2.66%
eForms Subscription Information Services 01/01/2023 01/01/2023 12/31/2025 2.66%
Flock Proprietary Software Information Services 08/31/2023 08/31/2023 07/31/2025 3.02%
MyBuildingPermit.com(MBP) General 01/01/2023 01/01/2023 12/31/2033 2.95%
PowerPolicy Subscription Information Services 01/01/2023 01/01/2023 12/31/2025 2.66%
RNI and Analytics Subscriptions Information Services 08/01/2018 01/01/2023 07/31/2028 2.70%
SeeClickFix OMS Plus Information Services 09/23/2023 09/23/2023 09/22/2026 2.90%
Time&Attendance Subscription Information Services 01/01/2023 01/01/2023 12/31/2025 2.66%
75
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
Subscription Assets
Balance Decreases/ Balance
1/1/24 Increases Adjustments 12/31/24
Governmental activities:
Subscription Assets:
ADManager Plus $ 159,247 $ - $ - $ 159,247
Autodesk Subscription 145,635 - - 145,635
Axon Software 3,068,114 - - 3,068,114
Core HR Subscription 116,168 - (116,168) -
Flock Proprietary Software 122,242 - - 122,242
MyBuildingPermit.com (MBP) 556,626 - - 556,626
PowerPolicy Subscription 42,959 - - 42,959
RNI and Analytics Subscriptions 194,539 - - 194,539
SeeClickFix OMS Plus 403,495 - - 403,495
Time &Attendance Subscription 58,326 - (58,326) -
eForms Subscription 42,959 - - 42,959
Total Software Subscription Assets 4,910,310 - (174,494) 4,735,816
Subscription Accumulated Amortization:
ADManager Plus (7,043) (36,749) - (43,792)
Autodesk Subscription (34,993) (36,409) - (71,402)
Axon Software (344,088) (344,088) - (688,176)
Core HR Subscription (38,721) (38,723) 77,444 -
Flock Proprietary Software (21,406) (63,686) - (85,092)
MyBuildingPermit.com (MBP) (50,602) (50,602) - (101,204)
PowerPolicy Subscription (14,320) (14,320) - (28,640)
RNI and Analytics Subscriptions (34,843) (34,843) - (69,686)
SeeClickFix OMS Plus (36,613) (134,498) - (171,111)
Time &Attendance Subscription (19,442) (19,442) 38,884 -
eForms Subscription (14,320) (14,320) - (28,640)
Total Software Subscription Accumulated Amortization (616,391) (787,680) 116,328 (1,287,743)
Total subscription assets, being amortized, net $4,293,919 $ (787,680) $ (58,166) $3,448,073
76
City of Auburn: 2024 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 $ 1.192,413
Public Safety 1.322.957
Transportation 14,734.760
Health and Human Services 257.897
Culture and Recreation 1.440.987
Capital assets held by the City's internal service funds are charged to the various
functions based on their usage of the assets 2.997.374
Total depreciation/amortization expense- governmental activities $ 21.946.388
Business-type activities:
Water $ 3.948.621
Sanitary Sewer 2,527.560
Storm Water 2,054.781
Airport 577.673
Cemetery 34.283
Total depreciation expense - business-type activities $ 9.142.918
NOTE 7 - LONG-TERM LIABILITIES
General Obligation Bonds are the 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, 2024, is $366,159.
• 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
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
77
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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 nine outstanding loans with a remaining total balance of $10,119,133. Six 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, DWL26020). The 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). One loan (GCB3652) is being repaid from the Airport fund
for two hangers.
Compensated Absences are paid by those funds that have employees. These are mostly payable by the General fund
and enterprise funds. This liability is recognized in accordance with GASB statement No. 101. This Statement requires
that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been
used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not
been used if(a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more
likely than not to be used for time off or otherwise paid in cash or settled through noncash means.
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, 2024, 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 the present value of future subscription payments for the subscription period. As of December
31, 2024, these liabilities are limited to governmental activities.
78
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
Debt to Other Governments results from the City's participation in the South Correctional Entity (SCORE), a
governmental administrative agency formed under an interlocal agreement with five other cities to construct and operate
a regional correctional facility.To finance this facility,the SCORE Public Development Authority(SCORE PDA), chartered
by the City of Renton, issued general obligation bonds in 2009, which were refunded in 2019 through the issuance of
Refunding Bonds, Series 2019. Under the amended 2019 interlocal agreement, the City is contractually obligated to pay
34.94%of the associated debt service, representing an unconditional full faith and credit pledge.This obligation is being
repaid from the General Fund and is not recorded as a direct bond of the City but is disclosed as a long-term obligation
due to another government.
The following schedules summarize the long-term debt transactions of the City for the year ended December 31, 2024.
The first table summarizes all debt transactions for Auburn, while the second provides information on debt requirements
to maturity. Additional schedules provide detailed information on all long-term debt.
CHANGES IN LONG-TERM LIABILITES SUMMARY
Long-term Due Within
Long-term liabilities liabilities payable Due Within More Than One
payable 12/31/23 Additions Reductions 12/31/24 One Year Year
Governmental Activities
General Obligation $ 16,808,476 $ - $ (1,167,317) $ 15,641,159 $ 1,216,159 $ 14,425,000
Premium 3,145,333 - (219,504) 2,925,829 - 2,925,829
Public Works Trust Fund Loans 2,507,791 - (197,375) 2,310,416 197,376 2,113,040
Bonds and Other Debt Payable 22,461,600 - (1,584,196) 20,877,404 1,413,535 19,463,869
Lease Liability 4,406,022 - (4,283,719) 122,303 39,897 82,406
Subscription Liability 4,127,051 - (734,023) 3,393,028 642,578 2,750,450
Lease and Subscription Liability 8,533,073 - (5,017,742) 3,515,331 682,475 2,832,856
Due To Other Governments(Backed by Full Faith 15,193,659 - (723,258) 14,470,401 752,957 13,717,444
and Credit of the City)
Employee Leave Benefit 5,498,055 2,573,399 (2,487,175) 5,584,279 2,067,010 3,517,269
Other Post Employment Benefits 9,307,343 294,867 (1,145,681) 8,456,529 305,000 8,151,529
Net Pension Liability 2,190,148 - (814,771) 1,375,377 1,375,377 -
Firemen's Pension Liability 2,915,957 91,126 (386,421) 2,620,662 - 2,620,662
Total Governmental Activities 66,099,835 2,959,392 (12,159,244) 56,899,983 6,596,354 50,303,629
Business-Type Activities
Revenue Bonds 25,540,000 - (2,125,000) 23,415,000 2,225,000 21,190,000
Premium 4,683,146 - (468,969) 4,214,177 - 4,214,177
Public Works Trust Fund&Drinking Water Loans 4,833,751 3,642,191 (667,224.76) 7,808,717 804,436 7,004,281
Bonds and Other Debt Payable 35,056,897 3,642,191 (3,261,194) 35,437,894 3,029,436 32,408,459
Employee Leave Benefits 1,253,320 564,862 (592,431) 1,225,751 453,710 772,041
Net Pension Liability 1,808,514 - (142,602) 1,665,912 1,665,912 -
Total Business-Type Activities 38,118,731 4,207,053 (3,996,226) 38,329,558 5,149,058 33,180,500
Total Primary Government $ 104,218,566 $ 7,166,445 $ (16,155,471) $ 95,229,541 $11,745,412 $ 83,484,129
79
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
As of December 31, 2024, the principal and interest requirements to maturity are as follows:
Debt Service Requirement To Maturity
Governmental Activities
General Obligation Bonds 0) Loans
Year Principal Interest Principal Interest
2025 $ 1,969,116 $ 1,278,685 $ 197,376 $ 6,580
2026 1,674,644 1,192,532 197,376 5,885
2027 1,754,825 1,108,800 197,376 5,191
2028 1,850,006 1,021,060 197,376 4,497
2029 1,933,681 928,560 116,993 3,802
2030 - 2034 11,032,446 3,249,334 584,966 14,624
2035 - 2039 9,896,842 1,018,674 584,966 7,312
2040 - 2044 233,987 877
Total $ 30,111,560 $9,797,645 $ 2,310,415 $ 48,769
0)Includes Due to Other Governments.
Business Type Activities
Revenue Bonds Loans
Year Principal Interest Principal Interest
2025 $ 2,225,000 $ 1,059,900 $ 804,436 $ 86,031
2026 2,325,000 954,650 803,940 102,268
2027 2,435,000 844,600 579,210 93,215
2028 2,550,000 729,300 580,774 85,712
2029 2,660,000 608,550 582,369 78,177
2030 - 2034 7,080,000 1,539,650 2,559,836 277,194
2035 - 2039 4,140,000 509,800 1,562,365 111,362
2040 - 2044 - - 335,787 8,764
Total $ 23,415,000 $6,246,450 $7,808,716 $842,723
Maturity Schedule of Lease and Subscription Liabilities
Governmental Activities:
Leases Subscriptions
Year Principal Interest Principal Interest
2025 $ 39,897 $2,424 $ 642,579 $ 97,058
2026 40,762 1,559 481,859 77,460
2027 41,644 675 457,753 63,703
2028 432,070 50,564
2029 409,588 38,416
2030 - 2034 969,179 45,688
$ 122,303 $4,658 $3,393,028 $372,889
80
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
CHANGES IN LONG-TERM LIABILITIES
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount(3) Installments 12/31/23 Additions Reductions 12/31/2024 One Year
GOVERNMENTAL DEBT
General Obligation Bonds:
LTGO Refunding 2016 164-1.64% 12/01/2025 $ 3,166,930 $71,470-$366,159 $ 728,476 $ - $ (362,317) $ 366,159 $ 366,159
LTGO Refunding 2020A(LTGO 2010B) 4.00-5.00% 12/01/2039 15,010,000 $480,000-$1,045.000 12,630,000 - (555,000) 12,075,000 585,000
LTGO Refunding 202013(LTGO 2010D) 4.00-5.00% 12/01/2034 4,470,000 $71,470-$366,159 3,450,000 - (250,000) 3,200,000 265,000
Total General Obligation Bonds 22,646,930 16,808,476 - (1,167,317) 15,641,159 1,216,159
Subscnotion Liability
ADManager Plus 3.529% 02/21/2028 159,247 107,484 - - 107,484 33,765
Autodesk Subscription 2.676% 01/14/2027 145,635 107,772 - (34,979) 72,793 35,916
Axon Software 2.798% 11/30/2031 3,068,114 2,751,076 - (311,600) 2,439.476 320,318
Flock Proprietary Software 3.018% 07/31/2025 118,242 58,242 - (58,242) -MyBuildingPermit.com(MBP) 2.946% 12/31/2033 556,626 513,118 - (44,802) 468,316 46,138
PowerPolicy Subscription 2.656% 12/31/2025 38,159 29,405 - (12,350) 17,055 17,055
eForms Subscription 2.656% 12/31/2025 38,159 29,405 - (12,350) 17,055 17.055
Time&Attendance Subscription 111 2.656% 12/31/2025 43,206 43,206 - (43,206) -Core HR Subscription 111 2.656% 12/31/2025 55,688 55,688 - (55,688) - -
RNI and Analytics Subscriptions 2.702% 07/31/2028 194,539 159,952 - (30,308) 129,644 31,127
SeeClickFix OMS Plus 2.901% 09/22/2026 403,495 271,703 - (130,498) 141,205 141,204
Total Subscription Liability 4,821,110 4,127,051 - (734,023) 3,393,028 642,578
Leases:
Feenix Parkside LLC 111 1.481% 2/29/2040 01 4,685,125 4,244,669 (4,244,669) - -
Sharp Business Systems 2.157% 10/31/2027 216,609 161,353 - (39,050) 122,303 39,897
Total Lease Liability 4,901,734 4,406,022 - (4,283,719) 122,303 39,897
Emolovee Leave Benefits:
Compensated absences 1�1 5,498,055 2,573,399 (2,487,175) 5,584,279 2,067,010
Other Post Employment Benefits:
LEOFF 1 9,307,343 294,867 (1,145,681) 8.456,529 305,000
Pensions:
Net Pension Liability 2,190,148 - (814,771) 1,375,377 1,375,377
Firemen's Pension Liability 2,915,957 91,126 (386,421) 2,620,662
Public Works Trust Fund Loans.
PWTF 2008 0.50% 07/01/2028 1,527,273 $80,382 401,914 - (80,382) 321,532 80,383
PWTF 2012 0.50% 06/01/2041 3,284,857 $116,993 2.105,877 - (116,993) 1,988,884 116,993
Total Public Works Trust Fund Loans 4,812,130 2,507,791 - (197,375) 2,310,416 197,376
Premium Related to Debt 3,145,333 - (219,504) 2,925,828 -
Total Governmental Activities $ 32.280,170 $ 50.906,176 $ 2,959,392 $ (11,435,986) $ 42,429,581 $ 5,843,397
BUSINESS-TYPE DEBT
Revenue Bonds:
Utility sys refunding bonds 2020(2010 Bonds) 5% 12/01/2030 11,835,000 $950,000-$1,450,000 8,850,000 - (1,095,000) 7,755,000 1,145,000
Utility sys bonds 2020131 4.00-5.00% 12/01/2039 12,030,000 $175.000-$895.000 10,610,000 - (455,000) 10.155,000 480,000
Utility sys bonds 2013131 0.38-4.00% 12/01/2032 11,415,000 $335,000-$785.000 6,080,000 - (575,000) 5,505,000 600,000
Total Revenue Bonds 35,280,000 25,540,000 - (2,125,000) 23,415,000 2,225,000
Emolovee Leave Benefits:
Compensated absences(2) 1,253,320 564,862 (592,431) 1,225,751 453,710
Net Pension Liability 1,808,514 - (142,602) 1,665,912 1,665,912
Public Works Trust Fund&Drinking Water Loans:
GCB3652 2.00% 6/30/2034 825,000 577,160489,825 - 825,000 - 825,000 77,161
DWL26020 121 1.75% 10/1/2041 Upto 3,737,000 $167,894 37,000 2.817,191 2.854,191 167,894
PWTF 2004 0.50% 7/1/2024 2,049,036 $107,844 107,844 - (107,844) -
PWTF 2006 0.50% 7/1/2026 3,325,000 $180,418 541,254 - (180,418) 360,836 180,418
PWTF 2013 2.00% 6/1/2032 3,325,000 $188,538 1,696,846 - (188,538) 1,508,307 188,538
DWSRF 2010 1.50% 10/1/2026 248,066 $30,262 137,537 - (45,845) 91,692 45,846
DWSRF 2020 1.75% 10/1/2039 3,030,000 $5,999 2,313,270 - (144,579) 2.168,690 144,579
Total Public Works Trust Fund&Drinking Water Loans 12,802,102 4,833,751 3,642,190.94 (667,225) 7,808,717 804,436
Premium Related to Debt 4,683,146 - (468,969) 4,214,177
Total Business Type Activities $ 48,082,102 $ 38.118,731 $ 4,207,053 $ (3.996,226) $ 38,329,558 $ 5,149,058
Total Primary Government $ 80,362,272 $ 89,024,907 $ 7,166,445 $ (15,432,213) $ 80,759,139 $ 10,992,455
01 Agreement terminated on December 31,2024.
121 The beginning balances have been restated to comply with GASB Statement No 100.
(3)Subject to federal arbitrage compliance rules.
141 The original authorized loan amount was reduced from$1,353,400 in concert with a reduction in project scope(limited to design costs only).
81
City of Auburn: 2024 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 12/31/23 Additions Reductions 12/31/2024 One Year
GOVERNMENTAL DEBT:
General Oblieation Bonds.
SCORE Refunding Bonds 2019 3 00-5 000/0 12/1/2038 17.838,617 $637,655-$1.325.973 15,193.659 - (723,258) 14,470,401 752.957
Total General Obligation Bonds
Due Other Governments $ 17.838,617 $ 15,193.659 $ - $ (723,258) $ 14,470,401 $ 752957
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 2024 was 4.45. 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.
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, 2024, is $0 for its tax-exempt bond issues.
82
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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, 2024, has lease receivables for both governmental and business type activities.
BUSINESS-TYPE ACTIVITIES: Balance as of Balance as of
January 1,2024 Additions Reductions December 31,2024
Deferred Inflow of Resources
Buildings
Airport East Room $ 120,930 $ - $ 120,930 $ -
Rainier Flight Services Airport East Room and Offices 1,2,and 3 - 158,146 5,101 153,044
S50 Hangars LLC-Airport 167,141 - 8,888 158,253
Total Building Deferred Inflow of Resources 288,071 158,146 134,919 311,297
Land
Auburn Condo Hangars Assoc(ACHA) 1,800,820 933,642 75,153 2,659,309
Auburn Flyers Condo I-Airport 233,096 123,641 9,434 347,303
Auburn Flyers Condo II-Airport 496,768 264,650 19,081 742,338
Auburn Flyers Condo III-Airport 555,744 296,602 20,249 832,097
Auburn Hangars Owners Assoc(AHOA) 1,840,388 973,102 76,551 2,736,939
Cascade Helicopter Services-Airport 1,546,846 - 34,826 1,512,021
Jim Jacobsen-Airport 208,944 105,216 8,417 305,743
S50 Hangars,LLC Airport Land Lease and Development - 2,153,814 17,470 2,136,344
Total Land Deferred Inflow of Resources 6,682,606 4,850,667 261,181 11,272,094
Total Deferred Inflow of Resources $ 6,970,677 $ 5,008,813 $ 396,100 $ 11,583,391
GOVERNMENTAL ACTIVITIES: Balance as of Balance as of
January 1,2024 Additions Reductions December 31,2024
Deferred Inflow of Resources
Buildings
Auburn Food Bank $ 591,124 $ - $ 36,754 $ 554,370
Auburn Professional Plaza-Parking Stalls 804,354 - 19,579 784,775
Phonomenton LLC Restaurant Lease - 234,258 90 234,168
Taqueria El Taco Maestro 2,LLC Restaurant Lease Agreement - 157,347 83 157,264
WEBB Laundry Enterprises Lease Agreement - 573,356 79 573,277
We Care Daily Clinics 124,946 - 25,851 99,095
Total Building Deferred Inflow of Resources 1,520,424 964,961 82,436 2,402,949
Easements
A Street Easement Area - 198,700 57,750 140,950
Total Easement Deferred Inflow of Resources - 198,700 57,750 140,950
Infrastructure
Seattle SMSA Lmtd Partnership-Verizon 359,969 - 17,348 342,621
Total Infrastructure Deferred Inflow of Resources 359,969 - 17,348 342,621
Land
SBA 2012 TC Assests LLC-Sprint(1) 869,407 - 38,784 830,623
Total Land Deferred Inflow of Resources 869,407 - 38,784 830,623
Total Deferred Inflow of Resources $ 2,749,800 $ 1,163,661 $ 196,318 $ 3,717,143
(1)Beginning balance is restated.
83
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
As of December 31, 2024, future lease receivable principal and interest payments are as follows:
BUSINESS-TYPE ACTIVITIES: Balance as of Balance as of
January 1,2024 Additions Reductions December 31,2024
Lease Receivable
Buildings
Airport East Room $ 122,732 $ - $ 122,732 $ -
Rainier Flight Services Airport East Room and Offices 1,2,and 3 - 158,146 5,108 153,038
S50 Hangars LLC-Airport 169,484 - 6,086 163,398
Total Building Lease Receivable 292,216 158,146 133,926 316,436
Land
Auburn Condo Hangars Assoc(ACHA) 1,827,666 933,642 53,505 2,707,803
Auburn Flyers Condo I-Airport 236,521 123,641 6,635 353,527
Auburn Flyers Condo II-Airport 504,531 264,650 13,312 755,869
Auburn Flyers Condo III-Airport 563,812 296,602 13,788 846,626
Auburn Hangars Owners Assoc(AHOA) 1,868,439 973,102 52,670 2,788,871
Cascade Helicopter Services-Airport 1,568,256 - 23,553 1,544,703
Jim Jacobsen-Airport 209,995 105,216 7,102 308,110
550 Hangars,LLC Airport Land Lease and Development - 2,143,814 - 2,143,814
Total Land Lease Receivable 6,779,220 4,840,667 170,565 11,449,323
Total Lease Receivable $ 7,071,436 $ 4,998,813 $ 304,491 $ 11,765,759
GOVERNMENTAL ACTIVITIES: Balance as of Balance as of
January 1,2024 Additions Reductions December 31,2024
Lease Receivable
Buildings
Auburn Food Bank $ 598,975 $ - $ 33,230 $ 565,745
Auburn Professional Plaza-Parking Stalls 816,387 - 13,697 802,690
Phonomenton LLC Restaurant Lease - 234,258 - 234,258
Taqueria El Taco Maestro 2,LLC Restaurant Lease Agreement - 157,347 - 157,347
WEBB Laundry Enterprises Lease Agreement - 573,356 - 573,356
We Care Daily Clinics 132,081 - 26,024 106,057
Total Building Lease Receivable 1,547,443 964,961 72,951 2,439,453
Infrastructure
Seattle SMSA Lmtd Partnership-Verizon 373,903 - 10,542 363,361
Total Infrastructure Lease Receivable 373,903 - 10,542 363,361
Land
SBA 2012 TC Assests LLC-Sprint(1) 874,944 - 25,218 849,726
Total Land Lease Receivable 874,944 - 25,218 849,726
Total Lease Receivable $ 2,796,290 $ 964,961 $ 108,711 $ 3,652,540
(1)Beginning balance is restated.
The following provides the total amount of inflows including lease revenue and interest revenue for the year 2024:
Lease Revenue Interest Revenue Total
Governmental Activities $ 196,317 $ 63,041 $ 259,358
Business-type Activities 284,825 168,700 453,524
Total $ 481,142 $ 231,741 $ 712,883
84
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
As of December 31, 2024, future lease receivable principal and interest payments are as follows:
Governmental Activities Business-type Activities
Year Principal Interest Total Principal Interest Total
2025 $ 183,907 $ 86,966 $ 270,873 $ 223,188 $ 167,027 $ 390,215
2026 189,097 85,217 274,314 256,873 162,638 419,511
2027 195,593 80,921 276,514 56,460 447,662 504,122
2028 196,936 76,465 273,401 322,664 247,553 570,217
2029 179,516 72,013 251,529 328,994 241,222 570,216
2030 -2034 732,358 300,924 1,033,282 1,572,587 1,116,018 2,688,605
2035 -2039 766,627 208,419 975,046 1,731,682 956,922 2,688,604
2040 -2044 649,646 108,880 758,526 1,880,277 780,273 2,660,550
2045 -2049 189,488 39,295 228,783 2,030,503 593,361 2,623,864
2050 -2054 111,816 27,597 139,413 1,196,206 415,816 1,612,022
2055 -2059 122,039 17,374 139,413 519,531 325,207 844,738
2060 -2064 133,196 6,216 139,412 578,162 242,488 820,650
2065 -2069 2,320 3 2,323 594,996 145,181 740,177
2070 -2074 - - - 473,635 45,681 519,316
Total $ 3,652,539 $ 1,110,290 $ 4,762,829 $ 11,765,758 $5,887,049 $ 17,652,807
85
City of Auburn: 2024 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
Lessee Lease Description Fund Leased Asset Contract Date Commencement Lease End Date Incremental
Date Borrowing Rate
Auburn Condo Hangars Association(1) Land situated at 2509"E"Street N E, Airport Land June-2001 June-2001 June-2051 1.7%
Auburn,WA
NW Hangars LLC(1) Auburn Flyers Condo 1.12,273 square Airport Land June-2002 June-2002 June-2052 1.8°/
feet of land
NW Hangars LLCM Auburn Flyers Condo II:24,948 square Airport Land January-2004 January-2004 January-2054 1.8%
feet of land
NW Hangars LLC 01 Auburn Flyers Condo III:26,765 square Airport Land August-2005 August-2005 August-2055 1.8%
feet of land
Auburn Hangars Owners Association 98,326 square feet Airport Land September-2001 September-2001 September-2051 1.8%
(AHOA)(1)
Cascade Helicopter Services Certain premises,facilities and rights on Airport Land February-1978 June-1978 May-2068 1.8%
Auburn Airport
James(Jim)Jacobsen(') 10,296 square feet of land located at Airport Land June-2002 June-2002 June-2052 4.3%
Auburn Airport
S50 Hangars LLC Commercial office and shop space Airport Building October-2022 October-2022 October-2042 4.1%
SpanaFlight LLC(2) 672 square feet in Airport east room Airport Building January-2023 February-2023 12/1/2033(2) 2.9%
Sprint Spectrum L.P.(SBA) 900 square feet of land and 720 square Municipal Parks Land April-2006 June-2006 May-2046 3.8%
feet of building exterior space Construction
Auburn Food Bank 6,647 square feet of rentable area General Buildings October-2020 November-2020 January-2040 1.5%
Auburn Professional Plaza Parking space General Building December-2008 February-2010 January-2065 1.8%
We Care Daily Clinics 1,960 square feet of rentable area located General Building October-2021 November-2021 October-2028 1.0%
on North Auburn Way and exclusive use
of two parking stalls
Seattle SMSA Lmtd Partnership-Venzon Athena facility and tower space in Fulmer Municipal Parks Infrastructure September-2014 October-2014 September-2044 1.7%
Park Construction
S50 Hangars,LLC Airport land lease and development Airport Land August-2024 August-2024 August-2074 4.0%
Phonomenton LLC Restaurant Lease General Building December-2024 December-2024 March-2032 2.5%
Taquena El Taco Maestro 2,LLC Restaurant Lease General Building December-2024 December-2024 03/31/2030 2.4%
WEBB Laundry Enterprises Laundromat General Building December-2024 December-2024 02/28/2045 3.4%
Central Puget Sound Regional Transit A Street Easement Area General Easement Area January-2024 March-2024 December-2026 0.0%
Authority
Rainier Flight Services Airport East Room and Offices 1,2,and 3 Airport Building October-2024 November-2024 12/31/2029 2.4%
1)An amendment was signed in 2024 which required lease modification according to GASB Statement No.87.The amendment determined the monthly lease payments for 2025 through 2027.
2)Lease was terminated in October 2024.$2,551 of loss on termination has been recognized.
86
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
Page 2 of 2
Lessee Purchase Payment Type Index Payment Payment Frequency
Option Amount ($)
Auburn Condo Hangars Association(I) None Fixed and CPI 8,481 Monthly
variable
NW Hangars LLC cn None Fixed and CPI 1,709 Monthly
Variable
NW Hangars LLC(1) None Fixed and CPI 2,139 Monthly
Variable
NW Hangars LLC(I) None Fixed and CPI 2,309 Monthly
Variable
Auburn Hangars Owners Association None Fixed and CPI 8,454 Monthly
(AHOA)(I) Variable
Cascade Helicopter Services None Variable CPI 4,245 Monthly
James(Jim)Jacobsen cn None Fixed and CPI 747 Monthly
Variable
S50 Hangars LLC None Variable CPI 1,079 Monthly
SpanaFlight LLC(2) None Variable Maximum of CPI 1,182 Monthly
or 5 percent
Sprint Spectrum L.P.(SBA) None Variable CPI 4,839 Monthly
Auburn Food Bank None Fixed N/A 3,490 Monthly
Auburn Professional Plaza None Variable CPI 2,324 Monthly
We Care Daily Clinics None Fixed N/A 2,250 Monthly
Seattle SMSA Lmtd Partnership-Verizon None Fixed N/A 16,721 Annual
S50 Hangars,LLC None Fixed and CPI adjustment "$10,000 at commencement One-time payment
variable from January *$9,442 monthly payments Monthly
2030 from 37th month
Phonomenton LLC None Fixed N/A 2,797 Monthly
Taqueria El Taco Maestro 2,LLC None Fixed N/A 2,523 Monthly
WEBB Laundry Enterprises None Fixed N/A 2,721 Monthly
Central Puget Sound Regional Transit None Fixed N/A 198,700 One-time payment
Authority
Rainier Flight Services None Fixed N/A 2,708 Monthly
87
City of Auburn: 2024 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 2024:
Aggregate Pension Amounts - All State Administered Plans
Pension liabilities $ (3,041,289)
Pension assets $ 16,270,800
Deferred outflows of resources $ 19,016,816
Deferred inflows of resources $ (4,831,351)
Pension expense/expenditures $ 28,226
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.zov.
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 2% 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.
88
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
Contributions
The PERS Plan 1 member contribution rate is established by State statute at 6%. 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 2/3 employer rate includes a component to address the PERS Plan 1 Unfunded Actuarial
Accrued Liability (UAAL) The PERS Plan 1 required contribution rates (expressed as a percentage of covered payroll) for
2024 were as follows:
PERS Plan 1
Actual Contribution Rates: Employer Employee*
January -June 2024:
PERS Plan 1 6.36% 6.00%
PERS Plan 1 UAAL 2.97%
Administrative Fee 0.20%
Total 9.53% 6.00%
July—August 2024:
PERS Plan 1 6.36% 6.00%
PERS Plan 1 UAAL 2.47%
Administrative Fee 0.20%
Total 9.03% 6.00%
September—December 2024:
PERS Plan 1 6.36% 6.00%
PERS Plan 1 UAAL 2.55%
Administrative Fee 0.20%
Total 9.11% 6.00%
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.
89
City of Auburn: 2024 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 2024
were as follows:
PERS Plan 2/3
Actual Contribution Rates: Employer 2/3 Employee 2*
January -June 2024:
PERS Plan 2/3 6.36% 6.36%
PERS Plan 1 UAAL 2.97%
Administrative Fee 0.20%
Employee PERS Plan 3 Varies: 5%-15%
Total 9.53%
July- August 2024:
PERS Plan 2/3 6.36% 6.36%
PERS Plan 1 UAAL 2.47%
Administrative Fee 0.20%
Employee PERS Plan 3 Varies: 5%-15%
Total 9.03%
September—December 2024:
PERS Plan 2/3 6.36% 6.36%
PERS Plan 1 UAAL 2.55%
Administrative Fee .20%
Employee PERS Plan 3 Varies: 5%-15%
Total 9.11%
The City's actual PERS plan contributions were $967,966 to PERS Plan 1 and $2,242,174 to PERS Plan 2/3 for the year
ended December 31, 2024.
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 is a cost-sharing, multiple-employer retirement system composed of two separate pension plans for both
membership and accounting purposes. Both LEOFF plans are defined benefit plans.
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 0%, as long as the plan remains fully funded.
The LEOFF Plan I had no required employer or employee contributions for fiscal year 2024. Employers paid only the
administrative expense of 0.20% of covered payroll.
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
LEOFF Plan 2 provides retirement, disability, and death benefits. Retirement benefits are determined as 2% 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
3%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 2024.
The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for 2024 were as follows:
LEOFF Plan 2
Actual Contribution Rates: Employer Employee
January— December 2024
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 $831,347 for the year ended December 31, 2024.
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, 2024, the state
contributed $96,422,231 to LEOFF Plan 2. The amount recognized by the City as its proportionate share of this amount
is $530,581.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation
completed in 2024 with a valuation date of June 30, 2023. 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.
Additional assumptions for subsequent events and law changes are current as of the 2023 actuarial valuation report.
The TPL was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2024. Plan
liabilities were rolled forward from June 30, 2023, to June 30, 2024, 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.
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
• 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.
Assumptions did not change from the prior contribution rate setting June 30, 2022 Actuarial Valuation Report (AVR).
OSA adjusted their methods for calculating UAAL contribution rates in PERS 1 to reflect the delay between the
measurement date of calculated Plan 1 rates and when the rates are collected. OSA made an adjustment to their model
to reflect past inflation experience when modeling future COLAs for current annuitants in all plans except PERS 1.
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.0%.
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 7.0% 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 7.0% 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 (CMAs) 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, 2024. The inflation component used to create the table is 2.5% 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 19% 2.1%
Tangible Assets 8% 4.5%
Real Estate 18% 4.8%
Global Equity 30% 5.6%
Private Equity 25% 8.6%
100%
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%, 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%) or 1-percentage point higher (8%) than the current rate.
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
1% Decrease Current Discount Rate 1% Increase
(6%) (7%) (8%)
1 PERS 1 $ 4,473,660 $ 3,041,289 $ 1,785,066
PERS 2/3 13,175,624 (7,308,865) (24,132,349)
LEOFF 1 (2,387,132) (2,712,416) (2,996,081)
LEOFF 2 $ 4,140,391 $ (6,249,519) $ (14,748,152)
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, 2024, the City reported its proportionate share of net pension liabilities and assets as follows:
Liability
(Asset)
PERS 1 $ (3,041,289)
PERS 2/3 7,308,865
LEOFF 1 2,712,416
LEOFF 2 $ 6,249,519
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 $ (2,712,416) $ (6,249,519)
State's proportionate share of the net (18,346,715) (4,055,606)
pension asset associated with the employer
TOTAL $ (21,059,131) $ (10,305,124)
At June 30, 2024, the City's proportionate share of the collective net pension liabilities was as follows:
Proportionate Proportionate Share Change in
Share 6/30/23 6/30/24 Proportion
PERS 1 0.175170% 0.171163% (0.004007%)
PERS 2/3 0.225923% 0.221711% (0.004212%)
LEOFF 1 0.093198% 0.095377% 0.002179%
LEOFF 2 0.352947% 0.333709% (0.019238%)
Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30, 2024, 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 2024. 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
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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 2024, 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, 2024, the City recognized pension expense as follows:
Pension Expense
PERS 1 $ (144,370)
PERS 2/3 (363,029)
LEOFF 1 (27,177)
LEOFF 2 562,802
TOTAL $ 28,226
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2024, 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 $ $ (243,356)
earnings on pension plan investments
Contributions subsequent to the measurement date 452,935
TOTAL $ 452,935 $ (243,356)
PERS 2/3 Deferred Outflows Deferred Inflows of
of Resources Resources
Differences between expected and actual experience $ 4,153,053 $ (16,922)
Net difference between projected and actual investment (2,094,512)
earnings on pension plan investments
Changes of assumptions 4,035,969 (463,088)
Changes in proportion and differences between 269,898 (112,228)
contributions and proportionate share of contributions
Contributions subsequent to the measurement date 1,125,959
TOTAL $ 9,584,879 $ (2,686,751)
LEOFF 1 Deferred Outflows Deferred Inflows of
of Resources Resources
Net difference between projected and actual investment $ $ (102,522)
earnings on pension plan investments
TOTAL $ $ (102.522)
LEOFF 2 Deferred Outflows Deferred Inflows of
of Resources Resources
Differences between expected and actual experience $ 4,599,528 $ (47,561)
Net difference between projected and actual investment (1,028,208)
earnings on pension plan investments
Changes of assumptions 2,572,687 (525,306)
Changes in proportion and differences between 1,385,219 (197,646)
contributions and proportionate share of contributions
Contributions subsequent to the measurement date 421,568
TOTAL $ 8,979,002 $ (1,798,722)
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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, 2025. 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
2025 (402,736) (1.611,56) (172,379) (653,471)
2026 206,906 3,214,009 89,307 1,756,645
2027 (21,907) 1,429,233 (8,571) 824,275
2028 (25,619) 1,422,284 (10,878) 891,446
2029 0 721,863 0 1,052,466
Thereafter $ 0 $ 596,350 $ 0 $ 2,887,351
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 2024, $119,516 was received from the state from taxes on fire insurance premiums, and $71,539 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.
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
The following table represents the plan aggregate pension amounts for 2024:
Aggregate Pension Amounts— Fire Relief and Pension Plan
Pension liabilities $ 2,620,662
Pension expense/expenditures $ (188,857)
Service Retirement Benefit
The amount of a member's 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)
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,
2023, and the December 31, 2024, 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, 2023 1 December 31, 2024 1
Discount Rate— municipal bond rate 3.25% 4.00%
(average rating AA/Aa or higher)
Valuation Date January 1, 2023 January 1, 2023
Measurement Date December 31, 2023 December 31, 2024
Inflation 2.50% 2.50%
Salary Increases Including Inflation 3.50% 3.50%
Pub-2010 Safety Mortality Pub-2010 Safety Mortality
Table (headcount-weighted) Table (headcount-weighted)
with ages set back one year with ages set back one year
for males is used for healthy for males is used for healthy
annuitants. Pub-2010 Safety annuitants. Pub-2010 Safety
Disabled Mortality Table is Disabled Mortality Table is
used for disabled annuitants. used for disabled annuitants.
Mortality A blend of rates from Pub- A blend of rates from Pub-
2010 Mortality Tables for 2010 Mortality Tables for
contingent annuitants and contingent annuitants and
retirees is used for surviving retirees is used for surviving
spouses. Mortality rates are spouses. Mortality rates are
projected forward projected forward
generationally using the generationally using the
ultimate rates in Projection ultimate rates in Projection
Scale MP-2017. Scale MP-2017.
Actuarial Cost Method Entry Age Normal Entry Age Normal
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
Total Pension Liability
The following table represents the changes in the total pension liability for 2024:
Increase
Fire Relief and Pension Plan (Decrease)
Total Pension
Liability
Balances as of December 31, 2023 $ 2,915,957
Changes for the year:
Interest on total pension liability 91,126
Effect of economic/demographic gains or losses 0
Effect of assumptions, changes or inputs (160,467)
Benefit payments * (225,954)
Balances as of December 31, 2024 $ 2,620,662
Benefit payments are estimated based on expected payouts.
Sensitivity Analysis
The following table presents the total pension liability of the City, calculated using the discount rate of 4%, 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
(3%) or 1 percentage point higher (5%) than the current rate.
1% Decrease Current 1% Increase
(3%) Discount Rate (5%)
(4%)
$ 2,838,357 $ 2,620,662 $ 2,430,074
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, 2023, to January 1, 2024, to
December 31, 2023 December 31, 2024
Interest on Total Pension Liability $ 89534 $ 91,126
Contributions From State Fire Insurance Premium Tax (114,235) (119,516)
Recognition of Deferred Inflows/Outflows of Resources:
Recognition of Economic/Demographic Gains/Losses 373,785 0
Recognition of Assumption Changes or Inputs 177,785 (160,467)
Pension Expense $ 526,869 $ (188,857)
Deferred Outflows/Inflows of Resources
As of December 31, 2024, there are no deferred outflows and inflows of resources.
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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 2024:
Aggregate OPEB Amounts
OPEB Liabilities $ 8,456,529
OPEB expense/expenditures $ (378,006)
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.
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, 2024, 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.
1 Retirees currently receiving benefits 32 1
1 Total 32 1
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, 2024. 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, 2024.
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 4% as of December 26, 2024. Rounding this to the nearest
Y% results in a discount rate of 4% as of the December 31, 2024, measurement date.
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
A medical (healthcare) and dental trend rate of 6% along with a long-term care inflation rate of 4.75% and Medicare
Part B trend rate of 7.70% were used in calculating the December 31, 2024, 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, 2024
OPEB Liability $ 7,635,510 $ 8,456,529 $ 9,396,542
The following presents the total OPEB liability of the City calculated using the discount rate of 4%, 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 (3%)
or one percentage point higher (5%) than the current rate.
1% Decrease Current Discount 1% Increase
Rate
Total December 31, 2024
OPEB Liability $ 9,372,554 $ 8,456,529 $ 7,674,985
The following table represents the changes in total OPEB liability for 2024:
OPEB LEOFF Plan 1 Increase (Decrease)
Total OPEB Liability
Balance as of December 31, 2023 $ 9,307,343
Changes for the Year:
Interest on Total OPEB Liability 294,867
Effect of economic/demographic (gains) or losses 0
Effect of Assumptions, Changes or Inputs (672,873)
Expected Benefit Payments (472,808)
Balance as of December 31, 2024 $ 8,456,529
For the year ended December 31, 2024, the City recognized an OPEB expense of $ (378,006).
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.
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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, 2024, 268 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.
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 2024, 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 interests 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.
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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.
NOTE 12 - CONSTRUCTION COMMITMENTS
As of December 31, 2024, the City had the following contractual obligations on construction projects:
SCHEDULE OF OUTSTANDING CONSTRUCTION OBLIGATIONS
Governmental Funds Enterprise Funds
Other Internal
Arterial Capital Governmental Sanitary Storm Service
Project Title Street Improvements Funds Water Sewer Drainage Airport Funds Total
Regional Growth Center Access $ 2.608.788 $ 6,520 $ 42,961 $ 98.518 $ 2.756.786
EVH Widening 1,522,321 1,522,321
2024 Neighborhood Improvements 1,245,987 106,954 1,352,941
Reservoirs 4 and 8 Seismic Retrofits 1,094,136 1,094,136
R Street SE/29th Street SE Intersection 419,086 49,239 36,169 118,817 623,310
Improvements
D St SE&23rd St SE Storm 36,457 46,398 54 536.313 619.222
Improvements
10th St NW&A St NW Intersection 591,622 591,622
Improvements
Lea Hill Rd&104th Ave SE Roundabout 417,810 134,219 552,029
M St NE Widening 292.952 9,697 24,243 73,608 400.500
2024 Neighborhood Traffic Calming 112,061 262,854 374,915
Citywide Uncontrolled Crossing 324,969 324,969
Enhancements
R St SE Preservation(33rd St SW to 195,855 18,108 4,000 64,324 282,287
37th St SE)
Rainier Ridge Pump Station Project 237,963 237,963
M&O Facility Improvements-Phase 1 218,016 218,016
Well 4 Facility Improvements 207,450 207,450
Downtown Infrastructure 184,321 184,321
Improvements
West Main St Pump Station Upgrade 184,275 184.275
Well 4 Electrical Improvements 182,444 182,444
R St and 21st St Roundabout 135,532 14,967 150.498
2025 Local Streets Preservation 61.198 29,466 22,666 113,330
112th PI SE Water Main Replacement 107,584 4,630 112,214
Runway and Taxiway Improvements 73,281 73,281
and RSA Grading
49th St NE 58,322 58,322
Jornada Park Utility Access 20,849 35,533 56,382
Improvements
Lea Hill Safe Routes to School 49,248 49,248
Coal Creek Springs Rehabilitation 13,015 13,015
S 277th(c222a)Environmental 12.452 12.452
Monitoring
Auburn Way South Roundabout 7,704 7,704
Enhancement
Garden Avenue Re-Alignment 7,271 7,271
AWOS,Beacon&Emergency Generator 2,545 2,545
2023 Local Street Preservation 1,743 1,743
AWS Imp.-Hemlock St SE to Poplar St 1,065 1,065
SE
Total $ 6,482,238 $ 1,883,057 $ 184,321 $1,913,242 $ 473,193 $1,138,683 $ 75,826 $ 218,016 $12,368,576
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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 2024 of the $85,886 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
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.
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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 2024 cost distribution for the five participating cities is as follows:
Dispatchable Percent of
Calls Total
Auburn 64,168 19.75%
Federal Way 69,670 21.44%
Kent 89,716 27.61%
Renton 68,801 21.17%
Tukwila 32,611 10.04%
Total 324,966 100.00%
Distribution of current year net income is based on these budgeted percentages.
SOURCE: ValleyCom-2024 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
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
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
(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 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 31.2023 $ 9,706.974 $8,498.305 $12,693,899 $9.518.721 $4.547.773 $ 44.965.672
Current year change 1,021.978 1,109.598 1,428,863 1.095.758 519.382 5.175.579
Equity Dec 31,2024 $ 10,728,952 $9,607.903 $ 14.122,762 $ 10,614,479 $ 5.067.155 $ 50.141.251
%of equity 21.40% 19.16% 28.17% 21.17% 10.11%
%of 2024 distribution 19.75% 21.44% 27.61% 21.17% 10.04%
SOURCE: ValleyCom-2024 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
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 Interlocal Formation 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
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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:
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%
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 2,615,000 1,293,100 3,908,100 1,365,490 188,370 235,268 1,600,758 141,473 376,741
2030-2034 15,090,000 4,460,600 19,550,600 6,830,979 942,339 1,176,946 8,007,926 707,732 1,884,678
2035-2038 14,430,000 1,206,850 15,636,850 5,463,516 753,696 941,338 6,404,854 566,054 1,507,392
Totals S 41,415,000 S 13,320,950 S 54,735,950 S 19,124,742 S 2,638,272 S 3,295,104 S 22,419,846 S 1,981,441 S 5,276,545
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.
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
The following summary of the Capital Contributions for the 2019 Bonds is condensed (unaudited) financial information
reported as of December 31, 2024, in relation to SCORE:
South Correctional Entity(SCORE)
Member City 2023 Patent of Equity 2023 Equity Balance 2024 Percent of Equity 2024 Apportionment 2024 Equity Balance
Auburn 41.38% $ 15,314,840 41.90% $ 1,218,459 $ 16,533,299
Burien 5.68% 2100,163 5.78% 181,287 2281,450
Des Moines 5.11% 1,889,243 5.08% 115,427 2,004,670
Renton 3211% 11,884,222 31.91% 705,931 12590,153
SeaTac 8.18% 3,027,042 7.96% 114,579 3,141,621
Tukwila 7.54% 2793,883 7.37% 116,942 2907,825
Grand Totals 100.00% $ 37,006,393 100.00% $ 2,452,625 $ 39,459,018I
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:
Investment in Joint Ventures
Balance Additions Reductions Balance
12/31/2023 12/31/2024
SCORE Public Development Authority $ 15,193,659 $ - $ (723,258) $ 14,470,401
Due to Other Governments 15,193,659 - (723,258) 14,470,401
Valley Communications Center 9,851,365 877,588 - 10,728,953
South Correctional Entity (SCORE) 15,314,840 1,218,459 - 16,533,299
Equity Share 25,166,205 2,096,047 - 27,262,252
Total Investment in Joint Ventures $ 41,732,653
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 2024 $209,648. Medical premiums and benefit payments made under the Fire Relief and Pension Plan for 2024
$93,203.
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
NOTE 16 - CONTINGENCIES AND LITIGATIONS
As of December 31,2024, 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. As of
December 31, 2024, WCIA has a total of 168 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 sublimits. The Board of Directors
determines the limits and terms of coverage annually.
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.
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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, 2024, projected ultimate loss during 2025 and 2026 program
years to be $860,000 and $907,000, respectively. On December 31,2024,incurred but not reported and claims payable
were estimated at $1,428,000. On December 31, 2024, fund net position was $3,642,531. The City carrier's excess
works' compensation insurance coverage with a private carrier for losses exceeding $750,000 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 2024 and 2023 were:
CHANGES OF ESTIMATED CLAIMS LIABILITIES FOR 2024AND 2023
Workers Compensation
2024 2023
Beg.of Year Claims Liabilities $1,192,000 $1,132,000
Less: Claim Payments (225,800) (196,083)
Plus: Claims and Changes in
Estimates 461,800 256,083
End of Year Claims Liabilities $1,428,000 $1,192,000
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, 2024:
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 exemption 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
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
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) 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 ground with one
level of below ground 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 2024 was $44,121
2) 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 2024 was $79,746.
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.
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 30, 2024 (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 - ACCOUNTING CHANGES AND ERROR CORRECTIONS
GASB Statement No. 100 establishes accounting and financial reporting requirements for (a) accounting changes and (b)
the correction of an error in previously issued financial statements (error correction). This Statement prescribes the
accounting and financial reporting for each type of accounting change and error corrections. This Statement requires
that (a) changes in accounting principles and error corrections be reported retroactively by restating prior periods, (b)
changes to or within the financial reporting entity be reported by adjusting beginning balances of the current period,
and (c) changes in accounting estimates be reported prospectively by recognizing the change in the current period. The
requirements of this Statement for changes in accounting principles apply to the implementation of a new
pronouncement in absence of specific transition provisions in the new pronouncement. This Statement also requires that
the aggregate amount of adjustments to and restatements of beginning net position, fund balance, or fund net position,
as applicable, be displayed by reporting unit in the financial statements. The requirements of this Statement are effective
for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods
thereafter.
109
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
For reporting periods prior to those presented in the basic financial statements, information included in Required
Supplementary Information (RSI), including Management's Discussion and Analysis (MD&A), or Supplementary
Information (SI), has not been restated for changes in accounting principles, in accordance with paragraph 36 of GASB
Statement No. 100. However, in compliance with paragraph 38 of the Statement, all applicable information has been
restated for the relevant prior periods to reflect the impact of error corrections within RSI (including MD&A) or SI.
During fiscal year 2024, changes occurred that are subject to this accounting standard.The following section outlines the
nature of these changes and presents their impact on financial statements.
Government-wide Statements:
Governmental Business-type Total Primary
Activities Activities Government
Net Position, Beginning of Year, As Previously Reported 549,770,028 316,765,420 866,535,447
Change in accounting principle:
Adoption of CASE 101 (1J (1,353,302) (344,412) (1,697,714)
Error correction:
SBA lease (2) (31,598) - (31,598)
Bonds interest and loan fees (3) - 1,115,025 1,115,025
Revenue Recognition (4) 607,765 - 607,765
Total Restatements (777,135) 770,613 (6,522)
Net Position, Beginning of Year, As Restated 548,992,893 317,536,033 866,528,925
Governmental Funds Statements:
Total
American Rescue Arterial Capital Nonmajor Governmental
General Fund Plan Act Street Improvements Funds Funds
Fund Balance,Beginning of Year,As Previously Reported 78,479,689 - 2,279,131 15,669,290 35,084,160 131,512,270
Error correction: -
SBA Lease(2) - - - - (31,598) (31,598)
Revenue Recognition (4) 557,538 - 37,254 12,973 607,765
Total Restatements 557,538 - 37,254 - (18,625) 576,167
Fund Balance,Beginning of Year,As Restated 79,037,228 - 2,316,385 15,669,290 35,065,535 132,088,437
Proprietary Funds Statements:
Sanitary Storm Solid Non-major Total Enterprise Internal Service
Water Sewer Drainage Waste Airport Funds Funds Funds
Net Position,Beginning of Year,As Previously Reported 110,309,117 103,006,296 85,004,440 1,150,764 13,557,015 3,135,769 316,163,400 28,831,467
Change in accounting principle
Adoption of GASB 101 ni (89,978) (79,562) (93,616) (641) (9.319) (22,689) (295.805) (145,054)
Error correction
Boodiote,evt and/van fee,r3i 816,220 107,514 191,291 - - - 1,115.025 -
Total Restatements 726,242 27,952 97,675 (641) (9,319) (22,689) 819.220 (145,054)
Net Position,Beginning of Year,As Restated 111,035,359 103,034,247 85,102,115 1,150,123 13,547,696 3,113,080 316,982.620 28,686,413
(1) Effective January 1, 2024, the City implemented GASB Statement No. 101, which replaced GASB Statement No. 16,
to recognize liabilities for compensated absences. With respect to transition, the implementation of a new
110
City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
authoritative pronouncement is considered a change in accounting principle in accordance with the provisions of
Statement 100. As a result, the difference between the liability amounts calculated per the provisions of these two
statements has been disclosed as a change in accounting principle. The adjustment also includes the changes in joint
venture investment related to Valley Communication Center due to implementation of the same GASB Statement
by the joint venture entity.
Adoption of GASB Statement No. 101 resulted in an increase to the compensated absences liability (i.e., employee
leave benefits) reported on the fund-level Statement of Net Position for the Proprietary Funds, as well as on the
government-wide Statement of Net Position. Additionally, the adoption of this statement by the joint venture led
to a decrease in the Investment in Joint Ventures reported on the government-wide Statement of Net Position.
(2) GASB Statement No. 87 requires certain variable payments to be included in the measurement of lease receivables
and deferred inflows. Some lease contracts contain clauses that increase lease payments over time. These increases
generally fall into two categories: known rate increases, which are predetermined and fixed in the contract, and
variable rate increases, which depend on future events or indices—such as changes tied to the Consumer Price Index
(CPI). Under GASB 87,variable rate increases should be excluded from the initial lease measurement, as the amounts
are not known at the time of the lease commencement. However, due to a misinterpretation of this guidance, no
distinction was made between known and variable rate increases. As a result, a variable CPI-based increase was
incorrectly included in the lease receivable calculation, leading to an overstatement of lease revenues related to one
lease agreement. In accordance with GASB Statement No. 100, the beginning balance has been restated to correct
this error.
The correction resulted in the following adjustments on the government-wide Statement of Net Position:
• Long-Term Contracts, Leases, and Notes Decreased by $938,303
• Deferred Inflows Related to Leases Decreased by $906,705
The same adjustments were made to the fund-level balance sheet for governmental funds.
(3) Under the accrual basis of accounting, expenditures are recognized when incurred, regardless of the timing of the
related payment. In prior years, interest expense associated with revenue bonds was incorrectly recognized before
it was incurred, resulting in an overstatement of expenses in those periods. To comply with the requirements of
GASB Statement No. 100, the financial reports have been restated to correct the previously overstated amounts.
This correction mainly led to a decrease in Accrued Interest Payable disclosed on the Statement of Net Position for
the proprietary funds and a decrease in the same line item reported on the government-wide Statement of Net
Position.
(4) Certain revenues that met the availability criteria under the modified accrual basis of accounting were not recognized
in the governmental funds in the periods in which they became both measurable and available. Additionally, certain
other revenues were recognized in prior periods even though they did not meet the availability criteria required
under the modified accrual basis. The restatement corrects both errors by properly recognizing revenues in the
periods in which they met the availability criteria. As a result, the beginning balances for the current reporting period
have been adjusted accordingly to reflect accurate revenue recognition in prior periods. The corrections resulted in
the following impacts on the reporting lines as detailed below:
• Decrease in Due from Other Governments 719,872
• Increase in Deferred Inflows of Resources 112,016
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City of Auburn: 2024 Annual Comprehensive Financial Report Notes to the Financial Statements
NOTE 20 - SUBSEQUENT EVENTS
On May 5, 2025, Resolution 5827 was passed by City Council authorizing the Mayor to terminate the interlocal
agreement (ILA) between the City of Auburn and King County for district court services. The current ILA terms extend
through December 31, 2026, at which time the termination will take place. The City will begin the process to establish
its own district court with the court to be operational starting January 2027.
The City of Auburn has been party to the ILA with King County for District Court Services since 2012. Recently, the
City reviewed, studied, and considered the services and costs to the City under the existing ILA. After thorough review
it was determined it would be advantageous for the City to establish its own municipal court.
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City of Auburn: 2024 Annual Comprehensive Financial Report Required Supplemental Information
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2024
Last 10 Fiscal Years
PERS 1 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension 0.171163% 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 $ 3,041,289 $ 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
pension liability(asset)
Covered employee payroll $ 34,416,937 $ 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 8.84% 12.71% 17.07% 7.91% 23.31% 27.43% 34.14% 37.95% 45.45% 46.31%
covered employee payroll
Plan fiduciary net position as a percentage 84.05% 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 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension 0.221711% 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 $ (7,308,865) $ (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-employee payroll $ 34,416,937 $ 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 -21.24% -29.42% -29.65% -82.85% 11.00% 8.93% 16.56% 35.39% 53.77% 40.25%
covered-employee payroll
Plan fiduciary net position as a percentage 105.17% 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 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension 0.095377% 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 $ (2,712,416) $ (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 $ (18,346,715) $ (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 $ (21,059,131) $ (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 168.48% 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 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension 0.333709% 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 $ (6,249,519) $ (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 $ (4,055,606) $ (5,406,160) $ (6,4E4,905) $ (14,221,221) $ (4,889,380) $ (5,988,390) $ (5,303,752) $ (3,339,178) $(1,363,764) $ (1,450,178)
employer
Total $ (10,305,124) $ (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-employee payroll $ 15,600,141 $ 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 -40.06% -55.40% -68.21% -155.48% -55.97% -69.02% -64.51% -44.29% -19.10% -21.22%
covered-employee payroll
Plan fiduciary net position as a percentage 109.27% 113.17% 116.09% 142.00% 115.83% 119.43% 118.50% 113.40% 106.04% 111.67%
of the total pension liability
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City of Auburn: 2024 Annual Comprehensive Financial Report Required Supplemental Information
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2024
Last 10 Fiscal Years
Notes to Schedule:
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 9.
Contribution and covered-employee 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-employee payroll.
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City of Auburn: 2024 Annual Comprehensive Financial Report Required Supplemental Information
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Employer Contributions
As of December 31, 2024
Last 10 Fiscal Years
PERS 1 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Statutorily or contractually required contributions $ 967,966 $ 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 $ (967,966) $ (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)
contractually required contributions
Covered-employee payroll $ 35,314,670 $ 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- 2.74% 3.41% 3.76% 4.29% 4.94% 4.94% 5.14% 4.96% 4.82% 4.47%
employee payroll
PERS 2/3 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Statutorily or contractually required contributions $ 2,242,174 $ 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 $ (2,242,174) $ (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)
contractually required contributions
Covered-employee payroll $ 35,314,670 $ 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- 6.35% 6.35% 6.36% 7.14% 7.94% 7.72% 7.74% 7.04% 6.41% 5.82%
employee payroll
LEOFF 2 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Statutorily or contractually required contributions $ 831,347 $ 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 $ (831,347) $ (804,151) $ (782,428) $ (756,576) $ (737,023) $ (730,140) $ (708,333) $ (639,662) $ (594,665) $ (551,812)
contractually required contributions
Covered-employee payroll $ 15,789,506 $ 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- 5.27% 5.21% 5.21% 5.29% 5.32% 5.37% 5.43% 5.33% 5.23% 5.23%
employee payroll
Note to Schedule:
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 9.
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City of Auburn: 2024 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
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Total Pension Liability-Beginning $ 2,915,957 $ 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
Service Cost • N/A N/A
Interest on Total Pension Liability 91,126 89,534 59,120 69,409 91,863 114,553 108,873 116,957 N/A N/A
Effect of Plan Changes • N/A N/A
Effect of Economic/Demographic Gains(Losses) 373,785 • (534,707) 208,957 • N/A N/A
Effect of Assumption Changes or Inputs (160,467) 177,785 (422,100) 138,062 244,126 376,773 (142,719) 77,612 N/A N/A
Benefit Payments (225,954) (223,425) (188,472) (186,020) (225,451) (221,139) (205,285) (200,138) N/A N/A
Net Change in Total Pension Liability (295,295) 417,679 (551,452) (513,256) 110,538 479,144 (239,131) (5,569) N/A N/A
Total Pension Liability-Ending $ 2,620,662 $ 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
Covered-employee Payroll $ $ • $ • $ • $ • $ • $ • $ • N/A N/A
Total Pension Liability as a%of Covered-
employee Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
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 3.25% as of December 31,
2023 to 4.00% as of December 31, 2024.
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 9.
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City of Auburn: 2024 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
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Total OPEB Liability-Beginning $ 9,307,343 $ 10,956,157 $ 13,370,311 $ 14,784,873 $ 13,702,359 $ 16,228,865 $ 17,472,360 N/A N/A N/A
Service Cost - - - - - - - N/A N/A N/A
Interest on Total OPEB Liability 294,867 402,400 261,571 290,093 368,593 636,891 597,724 N/A N/A N/A
Changes of Benefit Terms - - - - - - - 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
Effect of Assumption Changes or Inputs (672,873) 373,161 (2,089,347) (437,389) 1,315,995 883,507 (1,045,269) N/A N/A N/A
Expected Benefit Payments (472,808) (455,156) (586,378) (563,141) (602,074) (619,254) (795,950) N/A N/A N/A
Total OPEB Liability-Ending $ 8,456,529 $ 9,307,343 $ 10,956,157 $ 13,370,311 $ 14,784,873 $ 13,702,359 $ 16,228,865 N/A N/A N/A
Covered-employee Payroll - - - - - - - N/A N/A N/A
Total OPEB Liability as a%of Covered N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
employee Payroll
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 3.25% as of December 31,
2023, to 4.00% as of December 31, 2024.
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 10.
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City of Auburn: 2024 Annual Comprehensive Financial Report Required Supplemental Information
CITY OF
AUBURN
WASHINGTON
118
City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
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.
The following reconciliation provides a breakdown of total balance for the general fund presented
under the Basic Financial Statements.
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)
Fund Balance- Ending:
General Fund 60,508,641
Cumulative Reserve Fund 33,631,520
Fire Pension Fund 1,848,679
Total Fund Balance Presented under Basic Financial Statement 95,988,840
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City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
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, 2024
Budget Amounts
Variance with
Final Budget
Original Final Actual Positive
Budget Adopted Results (Negative)
REVENUES:
Investment Earnings $ 80,000 $ 80,000 $ 1,504,231 $ 1,424,231
Miscellaneous - 6,102,000 6,102,000 -
Total Revenues 80,000 6,182,000 7,606,231 1,424,231
EXPENDITURES:
Excess (Deficiency) of Revenues
Over (Under) Expenditures 80,000 6,182,000 7,606,231 1,424,231
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 4) (12,959,994) (17,354,468) (4,864,526) 12,489,942
Total Other Financing Sources (Uses) (12,959,994) (17,354,468) (4,864,526) 12,489,942
Net Change in Fund Balance (12,879,994) (11,172,468) 2,741,705 13,914,173
Fund Balance- Beginning 29,402,101 30,889,815 30,889,815 -
Fund Balance- Ending $ 16,522,107 $ 19,717,347 $ 33,631,520 $ 13,914,173
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 (33,631,520)
Fund Balance- Ending (GAAP) $ -
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City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
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, 2024
Budget Amounts
Variance with
Final Budget
Original Final Actual Positive
Budget Adopted Results (Negative)
REVENUES:
Intergovernmental $ 88,400 $ 88,400 $ 119,516 $ 31,116
Investment Earnings 15,200 15,200 69,895 54,695
Total Revenues 103,600 103,600 189,411 85,811
EXPENDITURES:
Current:
Security of Persons and Property 206,256 234,256 211,060 23,196
Total Expenditures 206,256 234,256 211,060 23,196
Excess (Deficiency) of Revenues
Over (Under) Expenditures (102,656) (130,656) (21,649) 109,007
Net Change in Fund Balance (102,656) (130,656) (21,649) 109,007
Fund Balance- Beginning 1,697,971 1,870,328 1,870,328 -
Fund Balance- Ending $ 1,595,315 $ 1,739,672 $ 1,848,679 $ 109,007
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 (1,848,679)
Fund Balance- Ending (GAAP) $ -
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City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
CITY OF
AUBURN
WASHINGTON
122
City of Auburn: 2024 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.
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City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENT FUNDS
December 31,2024
Total Nonmajor
Special Debt Capital Governmental
Revenue Service Proiects Permanent Funds
ASSETS:
Cash and Cash Equivalents $ 21,347,790 $ 460,135 $ 655,223 $ 838,860 $ 23,302,008
Investments 9,950,950 - - 1,699,408 11,650,358
Receivables:
Taxes 142,337 - - - 142,337
Customer Accounts 537,819 - 100,000 - 637,819
Other Receivables 174,879 - 37,413 10,618 222,910
Interfund Receivable 11,815 - - - 11,815
Due From Other Governmental Units 460,110 29.149 1,059,925 - 1,549,184
Long-Term Notes and Contracts 282,731 - 1,175,674 - 1,458,405
Total Assets 32,908,430 489,284 3,028,235 2,548,886 38,974,834
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 613,432 - 58,196 - 671,628
Interfund Payable 508,541 - - - 508,541
Total Liabilities 1,121,973 - 58,196 - 1,180,169
Deferred Inflow of Resources:
Unavailabe Revenues-Other 282,731 - - - 282,731
Deferred Inflows Related to Leases - - 1,173,244 - 1,173,244
Total Deferred Inflow of Resources 282,731 - 1,173,244 - 1,455,974
Fund Balance:
Nonspendable - - - 2,224,098 2,224,098
Restricted 18,043,312 - - - 18,043,312
Committed 12,710,633 - - - 12,710,633
Assigned 749,782 489,284 1,796,795 324,788 3,360,648
Total Fund Balance 31,503,726 489,284 1,796,795 2,548,886 36,338,691
Total Liabilities,Deferred Inflows And Fund Balances $32,908,430 $489,284 $ 3,028,235 $2,548,886 $38,974,834
124
City of Auburn: 2024 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, 2024
Total Nonmajor
Special Debt Capital Governmental
Revenue Service Projects Permanent Funds
REVENUES:
Taxes:
Excise $ 180,350 $ - $ - $ - $ 180,350
Interfund Utility 1,876,956 - - - 1,876,956
Property - - 345,483 - 345,483
Retail Sales &Use 2,660,567 226,998 - - 2,887,566
Utility 1,347,452 - - - 1,347,452
Charges for Services 1,273,159 - 5,108 72,791 1,351,058
Fines and Forfeitures 177,400 - - - 177,400
Intergovernmental 1,563,033 - 1,110,120 - 2,673,153
Investment Earnings 1,294,522 33,119 112,724 85,886 1,526,252
Rental&Other Revenues 3,215 - 78,263 - 81,478
Total Revenues 10,376,655 260,118 1,651,698 158,677 12,447,148
EXPENDITURES:
Current:
Economic Environment 1,025,489 - - - 1,025,489
Security of Persons and Property 339,255 - - - 339,255
Transportation 6,268,653 - - - 6,268,653
Debt Service:
Principal - 1,167,317 - - 1,167,317
Interest and Other Costs - 710,947 - - 710,947
Capital Outlay - - 3,352,381 - 3,352,381
Total Expenditures 7,633,397 1,878,264 3,352,381 - 12,864,042
Excess (Deficiency) of Revenues Over
(Under) Expenditures 2,743,258 (1,618,146) (1,700,683) 158,677 (416,894)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 4) 699,392 1,623,514 1,453,855 - 3,776,760
Transfers Out (Note 4) (2,086,710) - - - (2,086,710)
Total Other Financing Sources (Uses) (1,387,318) 1,623,514 1,453,855 - 1,690,050
Net Change in Fund Balance 1,355,940 5,368 (246,828) 158,677 1,273,156
Fund Balance, January 1, As Previously Presented 30,134,814 483,916 2,075,221 2,390,209 35,084,160
Error Corrections 12,973 - (31,598) - (18.625)
Fund Balance, January 1, Restated 30,147,787 483,916 2,043,623 2,390,209 35,065,535
Fund Balance- Ending $ 31,503,726 $ 489,284 $ 1,796,795 $ 2,548,886 $ 36,338,691
125
City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
*
CITY OF
UBURN
WASHINGTON
126
City of Auburn: 2024 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.
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.
127
City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
December 31,2024
Housing and Total Nonmajor
Arterial Street Drug HoteVMotel Community Local Mitigation Recreation Special Revenue
Preservation Forfeiture Tax Development Street Fees Trails Funds
ASSETS:
Cash and Cash Equivalents $ 2,746,768 $ 904,562 $ 472,644 $ 61,298 $ 6,116,945 $ 10,991,849 $ 53,723 $ 21,347,790
Investments 2,473,825 - - - 2,473,825 5,003,300 - 9,950,950
Receivables:
Taxes - - - - 142,337 - - 142,337
Customer Accounts 79,002 2,004 - 456,813 - - - 537,819
Other Receivables 50,276 - - - 50,276 74,327 - 174,879
Interfund Receivable 11,815 - - - - - - 11,815
Due From Other Governmental Units 348,693 16,066 11,977 82,854 - - 520 460,110
Long-Term Notes and Contracts - 282,731 - - - - - 282,731
Total Assets 5,710,379 1,205,363 484,621 600,965 8,783,383 16,069,476 54,243 32,908,430
LIABILITIES,DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 319,339 34,051 75 96,266 157,744 5,957 - 613,432
Interfund Payable - - - 450,000 - 58,541 - 508,541
Total Liabilities 319,339 34,051 75 546,266 157,744 64,498 - 1,121,973
Deferred Inflow of Resources:
Unavailabe Revenues-Other - 282,731 - - - - - 282,731
Total Deferred Inflow of Resources - 282,731 - - - - - 282,731
Fund Balance:
Restricted 759,948 829,915 459,003 54,699 - 15,890,236 49,511 18,043,312
Committed 4,402,991 - - - 8,307,642 - - 12,710,633
Assigned 228,101 58,667 25,543 - 317,996 114,742 4,732 749,782
Total Fund Balance 5,391,040 888,582 484,546 54,699 8,625,639 16,004,978 54,243 31,503,726
Total Liabilities,Deferred Inflows And Fund Balances $ 5,710,379 $ 1,205,363 $ 484,621 $ 600,965 $ 8,783,383 $ 16,069,476 $ 54,243 $ 32,908,430
128
City of Auburn: 2024 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 31,2024
Housing and Total Non-Major
Arterial Street Drug Hotel/Motel Community Local Mitigation Recreation Special Revenue
Preservation Forfeiture Tax Development Street Fees Trails Funds
REVENUES:
Taxes:
Excise $ - $ - $ 180,350 $ - $ - $ - $ - $ 180,350
Interfund Utility - - - - 1,876,956 - - 1,876,956
Retail Sales&Use 2,660,567 - - - - - - 2,660,567
Utility - - - - 1,347,452 - - 1,347,452
Charges for Services 247,041 31,589 - - - 994,530 - 1,273,159
Fines and Forfeitures - 177,400 - - - - - 177,400
Intergovernmental 759,948 - - 796,383 - - 6,702 1,563,033
Investment Earnings 228,101 58,667 25,543 - 317,996 659,483 4,732 1,294,522
Miscellaneous - 815 - - 2,400 - - 3,215
Total Revenues 3,895,657 268,471 205,893 796,383 3,544,804 1,654,012 11,434 10,376,655
EXPENDITURES:
Current:
Economic Environment - - 240,900 784,589 - - - 1,025,489
Security of Persons and Property - 339,255 - - - - - 339,255
Transportation 4,277,639 - - - 1,991,014 - - 6,268,653
Total Expenditures 4,277,639 339,255 240,900 784,589 1,991,014 - - 7,633,397
Excess(Deficiency)of Revenues Over
(Under)Expenditures (381,981) (70,785) (35,007) 11,795 1,553,790 1,654,012 11,434 2,743,258
OTHER FINANCING SOURCES (USES):
Transfers In(Note 4) - - - - 699,392 - - 699,392
Transfers Out(Note 4) - - - - - (2,020,500) (66,210) (2,086,710)
Total Other Financing Sources(Uses) - - - - 699,392 (2,020,500) (66,210) (1,387,318)
Net Change in Fund Balance (381,981) (70,785) (35,007) 11,795 2,253,182 (366,487) (54,776) 1,355,940
Fund Balance,January 1,As Previously
Presented 5,773,021 959,366 506,580 42,904 6,372,457 16,371,466 109,020 30,134,814
Error Corrections - - 12,973 - - - - 12,973
Fund Balance,January 1,Restated 5,773,021 959,366 519,553 42,904 6,372,457 16,371,466 109,020 30,147,787
Fund Balance-Ending $5,391,040 $888,582 $ 484,546 $ 54,699 $8,625,639 $16,004,978 $ 54,243 $ 31,503,726
129
City of Auburn: 2024 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, 2024
Budget Amounts
Variance with
Final Budget
Original Final Actual Positive
Budget Adopted Results (Negative)
REVENUES:
Taxes:
Interfund Utility $ 1,334,300 $ 1,334,300 $ - $ (1,334,300)
Retail Sales & Use 2,100,000 2,100,000 2,660,567 560,567
Charges for Services - 429,557 247,041 (182,516)
Intergovernmental 750,000 3,992,122 759,948 (3,232,174)
Investment Earnings 18,800 18,800 228,101 209,301
Total Revenues 4,203,100 7,874,779 3,895,657 (3,979,122)
EXPENDITURES:
Current:
Transportation 5,250,000 10,602,176 4,277,639 6,324,537
Total Expenditures 5,250,000 10,602,176 4,277,639 6,324,537
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,046,900) (2,727,397) (381,981) 2,345,416
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 4) - (185,000) - 185,000
Total Other Financing Sources (Uses) - (185,000) - 185,000
Net Change in Fund Balance (1,046,900) (2,912,397) (381,981) 2,530,416
Fund Balance- Beginning 2,641,130 5,773,021 5,773,021 -
Fund Balance- Ending $ 1,594,230 $2,860,624 $5,391,040 $ 2,530,416
130
City of Auburn: 2024 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, 2024
Budget Amounts
Variance with
Final Budget
Original Final Actual Positive
Budget Adopted Results (Negative)
REVENUES:
Charges for Services $ 18,000 $ 18,000 $ 31,589 $ 13,589
Fines and Forfeitures 125,000 125,000 177,400 52,400
Investment Earnings 5,000 5,000 58,667 53,667
Miscellaneous - - 815 815
Total Revenues 148,000 148,000 268,471 120,471
EXPENDITURES:
Current:
Security of Persons and Property 404,917 404,917 339,255 65,662
Total Expenditures 404,917 404,917 339,255 65,662
Excess (Deficiency) of Revenues
Over (Under) Expenditures (256,917) (256,917) (70,785) 186,132
Net Change in Fund Balance (256,917) (256,917) (70,785) 186,132
Fund Balance- Beginning 612,565 959,366 959,366 -
Fund Balance- Ending $ 355,648 $ 702,449 $ 888,582 $ 186,133
131
City of Auburn: 2024 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, 2024
Budget Amounts
Variance with
Final Budget
Original Final Actual Positive
Budget Adopted Results (Negative)
REVENUES:
Taxes:
Excise $ 140,000 $ 225,000 $ 180,350 $ (44,650)
Charges for Services 2,500 $ 2,500 $ - (2,500)
Investment Earnings 1,400 1,400 25,543 24,143
Total Revenues 143,900 228,900 205,893 (23,007)
EXPENDITURES:
Current:
Economic Environment 177,100 262,100 240,900 21,200
Total Expenditures 177,100 262,100 240,900 21,200
Excess (Deficiency) of Revenues
Over (Under) Expenditures (33,200) (33,200) (35,007) (1,807)
Net Change in Fund Balance (33,200) (33,200) (35,007) (1,807)
Fund Balance- Beginning 446,979 506,580 506,580 -
Fund Balance- Ending $ 413,779 $ 473,380 $ 484,546 $ 11,166
132
City of Auburn: 2024 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, 2024
Budget Amounts
Variance with
Final Budget
Original Final Actual Positive
Budget Adopted Results (Negative)
REVENUES:
Intergovernmental $ 650,000 $ 866,057 $ 796,383 $ (69,674)
Total Revenues 650,000 866,057 796,383 (69,674)
EXPENDITURES:
Current:
Economic Environment 650,000 866,057 784,589 81,468
Total Expenditures 650,000 866,057 784,589 81,468
Excess (Deficiency) of Revenues
Over (Under) Expenditures - - 11,795 11,795
Net Change in Fund Balance - - 11,795 11,795
Fund Balance - Beginning 42,842 42,904 42,904 -
Fund Balance - Ending $ 42,842 $ 42,904 $ 54,699 $ 11,795
133
City of Auburn: 2024 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, 2024
Budget Amounts
Variance with
Final Budget
Original Final Actual Positive
Budget Adopted Results (Negative)
REVENUES:
Taxes:
Interfund Utility $ 889,500 $ 889,500 $ 1,876,956 $ 987,456
Utility 1,490,700 1,490,700 1,347,452 (143,248)
Investment Earnings 15,900 15,900 317,996 302,096
Miscellaneous - - 2,400 2,400
Total Revenues 2,396,100 2,396,100 3,544,804 1,148,704
EXPENDITURES:
Current:
Transportation 1,951,300 5,888,038 1,991,014 3,897,024
Total Expenditures 1,951,300 5,888,038 1,991,014 3,897,024
Excess (Deficiency) of Revenues
Over (Under) Expenditures 444,800 (3,491,938) 1,553,790 5,045,728
OTHER FINANCING SOURCES (USES):
Transfers In (Note 4) 150,000 1,300,329 699,392 (600,937)
Total Other Financing Sources (Uses) 150,000 1,300,329 699,392 (600,937)
Net Change in Fund Balance 594,800 (2,191,609) 2,253,182 4,444,791
Fund Balance- Beginning 2,494,389 6,372,457 6,372,457 -
Fund Balance- Ending $ 3,089,189 $ 4,180,848 $ 8,625,639 $ 4,444,791
134
City of Auburn: 2024 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, 2024
Budget Amounts
Variance with
Final Budget
Original Final Actual Positive
Budget Adopted Results (Negative)
REVENUES:
Charges for Services $ 1,580,000 $ 1,580,000 $ 994,530 $ (585,470)
Investment Earnings 20,100 20,100 659,483 639,383
Total Revenues 1,600,100 1,600,100 1,654,012 53,912
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 1,525,100 1,525,100 1,654,012 128,912
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 4) (6,928,800) (10,856,789) (2,020,500) 8,836,289
Total Other Financing Sources (Uses) (6,928,800) (10,856,789) (2,020,500) 8,836,289
Net Change in Fund Balance (5,403,700) (9,331,689) (366,487) 8,965,202
Fund Balance- Beginning 5,533,385 16,371,466 16,371,466 -
Fund Balance - Ending $ 129,685 $ 7,039,777 $16,004,978 $ 8,965,201
135
City of Auburn: 2024 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, 2024
Budget Amounts
Variance with
Final Budget
Original Final Actual Positive
Budget Adopted Results (Negative)
REVENUES:
Intergovernmental $ 7,000 $ 7,000 $ 6,702 $ (298)
Investment Earnings 100 100 4,732 4,632
Total Revenues 7,100 7,100 11,434 4,334
Excess (Deficiency) of Revenues
Over (Under) Expenditures 7,100 7,100 11,434 4,334
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 4) - (66,210) (66,210) -
Total Other Financing Sources (Uses) - (66,210) (66,210) -
Net Change in Fund Balance 7,100 (59,110) (54,776) 4,334
Fund Balance- Beginning 102,945 109,020 109,020 -
Fund Balance- Ending $ 110,045 $ 49,910 $ 54,243 $ 4,334
136
City of Auburn: 2024 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.
137
City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR DEBT SERVICE FUNDS
December 31, 2024
2020 Bonds & Total Nonmajor
2016 Combined Refunding Debt Service
Refunding (2010B&D) Funds
ASSETS:
Cash and Cash Equivalents $ - $ 460,135 $ 460,135
Due From Other Governmental Units - 29,149 29,149
Total Assets - 489,284 489,284
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Fund Balance:
Assigned - 489,284 489,284
Total Fund Balance - 489,284 489,284
Total Liabilities, Deferred Inflows And Fund Balances $ - $ 489,284 $ 489,284
138
City of Auburn: 2024 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, 2024
2020 Bonds & Total Non-Major
2016 Combined Refunding Debt Service
Refunding (2010B&D) Funds
REVENUES:
Taxes:
Retail Sales & Use $ - $ 226,998 $ 226,998
Investment Earnings - 33,119 33,119
Total Revenues - 260,118 260,118
EXPENDITURES:
Debt Service:
Principal 362,317 805,000 1,167,317
Interest and Other Costs 11,947 699,000 710,947
Total Expenditures 374,264 1,504,000 1,878,264
Excess (Deficiency) of Revenues Over (Under)
Expenditures (374,264) (1,243,882) (1,618,146)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 4) 374,264 1,249,250 1,623,514
Total Other Financing Sources (Uses) 374,264 1,249,250 1,623,514
Net Change in Fund Balance - 5,368 5,368
Fund Balance, January 1, As Previously Presented - 483,916 483,916
Fund Balance- Ending $ - $ 489,284 $ 489,284
139
City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
*
*
CITY OF
UBURN
WASHINGTON
140
City of Auburn: 2024 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.
141
City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR CAPITAL PROJECTS FUNDS
December 31, 2024
Total Nonmajor
Local Parks Capital Projects
Revitalization Construction Funds
ASSETS:
Cash and Cash Equivalents $ 302,572 $ 352,651 $ 655,223
Receivables:
Customer Accounts 100,000 - 100,000
Other Receivables - 37,413 37,413
Due From Other Governmental Units - 1,059,925 1,059,925
Long-Term Notes and Contracts - 1,175,674 1,175,674
Total Assets 402,572 2,625,663 3,028,235
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 34,563 23,633 58,196
Total Liabilities 34,563 23,633 58,196
Deferred Inflow of Resources:
Deferred Inflows Related to Leases - 1,173,244 1,173,244
Total Deferred Inflow of Resources - 1,173,244 1,173,244
Fund Balance:
Assigned 368,009 1,428,786 1,796,795
Total Fund Balance 368,009 1,428,786 1,796,795
Total Liabilities, Deferred Inflows And Fund Balances $ 402,572 $2,625,663 $ 3,028,235
142
City of Auburn: 2024 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, 2024
Total Non-Major
Local Parks Capital Projects
Revitalization Construction Funds
REVENUES:
Taxes:
Property $ - $ 345,483 $ 345,483
Charges for Services - 5,108 5,108
Intergovernmental 100,000 1,010,120 1,110,120
Investment Earnings 21,451 91,273 112,724
Rents - 78,263 78,263
Total Revenues 121,451 1,530,247 1,651,698
EXPENDITURES:
Capital Outlay 1,118,341 2,234,040 3,352,381
Total Expenditures 1,118,341 2,234,040 3,352,381
Excess (Deficiency) of Revenues Over (Under)
Expenditures (996,889) (703,793) (1,700,683)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 4) 878,972 574,883 1,453,855
Total Other Financing Sources (Uses) 878,972 574,883 1,453,855
Net Change in Fund Balance (117,918) (128,910) (246,828)
Fund Balance, January 1, As Previously Presented 485,926 1,589,295 2,075,221
Error Corrections - (31,598) (31,598)
Fund Balance, January 1, Restated 485,926 1,557,697 2,043,623
Fund Balance - Ending $ 368,009 $ 1,428,786 $ 1,796,795
143
City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
CITY OF *
UBURN
WASHINGTON
144
City of Auburn: 2024 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.
145
City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR PERMANENT FUNDS
December 31, 2024
Cemetery
Endowment
Care
ASSETS:
Cash and Cash Equivalents $ 838,860
Receivables:
Other Receivables 10,618
Investments 1,699,408
Total Assets 2,548,886
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Fund Balance:
Nonspendable 2,224,098
Assigned 324,788
Total Fund Balance 2,548,886
Total Liabilities, Deferred Inflows And Fund Balances $ 2,548,886
146
City of Auburn: 2024 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, 2024
Cemetery
Endowment
Care
REV EN U ES:
Charges for Services $ 72,791
Investment Earnings 85,886
Total Revenues 158,677
EXPENDITURES:
Excess (Deficiency) of Revenues Over (Under) Expenditures 158,677
Net Change in Fund Balance 158,677
Fund Balance, January 1, As Previously Presented 2,390,209
Fund Balance - Ending $ 2,548,886
147
City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
CITY OF *
UBURN
WASHINGTON
148
City of Auburn: 2024 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.
149
City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31,2024
Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
ASSETS:
Current Assets
Cash and Cash Equivalents $ 1,333,127 $ 5,120,636 $ 473,893 $ 3,033,125 $ 8,062,294 $ 18,023,075
Investments - - - 971,090 - 971,090
Customer Accounts - - 73,804 5,165 - 78,969
Other Receivables - - - 10,618 - 10,618
Due From Other Governmental Units - - 12,500 - - 12,500
Inventories - - - - 479,005 479,005
Prepaids - - - 234,626 - 234,626
Total Current Assets 1,333,127 5,120,636 560,197 4,254,624 8,541,299 19,809,882
Noncurrent Assets
Net Pension Asset - - 98,952 720,039 104,078 923,069
Capital Assets Not Being Depreciated:
Construction in Progress - - - - 344,959 344,959
Total Capital Assets Not Being Depreciated - - - - 344,959 344,959
Capital Assets Being Depreciated:
Buildings and Equipment - - - 10,144,244 26,615,505 36,759,749
Improvements Other Than Buildings - - - 480,237 190,239 670,476
Right of Use(Leases) - - - 216,734 - 216,734
Right of Use(Subscriptions) - - - 1,111,077 - 1,111,077
Accumulated Depreciation - - - (10,339,811) (14,820,330) (25,160,141)
Total Capital Assets Being Depreciated - - - 1,612,480 11,985,414 13,597,894
Total Noncurrent Assets - - 98,952 2,332,519 12,434,451 14,865,923
Total Assets 1,333,127 5,120,636 659,149 6,587,143 20,975,750 34,675,805
DEFERRED OUTFLOW OF RESOURCES:
Deferred Outflow Related to Pensions - 7,349 221,776 525,797 230,381 985,303
Total Deferred Outflow Of Resources - 7,349 221,776 525,797 230,381 985,303
LIABILITIES:
Current Liabilities
Current Payables 28,509 41,939 327,060 446,299 489,107 1,332,914
Claims Liabilities - 1,428,000 - - - 1,428,000
Leases and SBITA Payable-Current - - - 316,018 - 316,018
Employee Leave Benefits - - 48,430 131,551 27,781 207,762
Due to Other Funds - - - 4,284 - 4,284
Total Current Liabilities 28,509 1,469,939 375,490 898,151 516,888 3,288,977
Noncurrent Liabilities
Employee Leave Benefits - - 82,410 223,851 47,272 353,533
Leases and SBITA Payable - - - 291,522 - 291,522
Net Pension Liability - 1,087 - - 867,707 868,794
Total Noncurrent Liabilities - 1,087 82,410 515,373 914,979 1,513,849
Total Liabilities 28,509 1,471,026 457,900 1,413,523 1,431,867 4,802,825
DEFERRED INFLOW OF RESOURCES:
Deferred Inflow related to Pensions - 14,428 99,498 698,036 52,365 864,327
Total Deferred Inflow Of Resources - 14,428 99,498 698,036 52,365 864,327
NET POSITION:
Net Investment in Capital Assets - - - 1,004,941 12,330,373 13,335,314
Restricted:
Pension - - 98,952 720,039 104,078 923,069
Unrestricted 1,304,618 3,642,531 224,575 3,276,400 7,287,448 15,735,572
Total Net Position $ 1,304,618 $ 3,642,531 $323,527 $ 5,001,380 $19,721,899 $29,993,956
150
City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31,2024
Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
OPERATING REVENUES:
Charges for Services $ - $ 1,188,462 $4,620,524 $8,881,700 $ 5,683,572 $20,374,258
Rental and Other Revenues - - 83,239 26,833 - 110,072
Total Operating Revenues - 1,188,462 4,703,763 8,908,533 5,683,572 20,484,330
OPERATING EXPENSES:
Administration 177,058 - 314,100 643,896 1,380,545 2,515,599
Depreciation/Amortization - - - 839,345 2,158,029 2,997,374
Operations&Maintenance - 1,168,510 4,290,822 8,249,514 2,134,027 15,842,874
Total Operating Expenses 177,058 1,168,510 4,604,922 9,732,755 5,672,601 21,355,847
Operating Income or Loss (177,058) 19,952 98,841 (824,222) 10,971 (871,517)
NON-OPERATING REVENUE (EXPENSE):
Gain (Loss)on Sale of Capital Assets - - - (806) 7,091 6,285
Interest Expense - - - (21,272) - (21,272)
Interest Revenue 51,981 242,776 10,778 159,199 401,557 866,291
Insurance Recoveries and Other - - 167,758 526 40,537 208,821
Total Non-Operating Revenue(Expense) 51,981 242,776 178,535 137,647 449,186 1,060,125
Income(Loss) Before Contributions and
Transfers (125,077) 262,728 277,376 (686,575) 460,157 188,608
CONTRIBUTIONS &TRANSFERS:
Transfers In (Note 4) - - 313,359 583,535 813,165 1,710,059
Transfers Out(Note 4) - - (570,604) (20,520) - (591,124)
Total Contributions&Transfers - - (257,245) 563,015 813,165 1,118,935
Total Contributions&Transfers - - (257,245) 563,015 813,165 1,118,935
Change in Net Position (125,077) 262,728 20,131 (123,561) 1,273,322 1,307,543
Net Position-January 1,As Previously Presented 1,429,696 3,379,803 342,520 5,208,869 18,470,580 28,831,467
Change in Accounting Principles - - (39,124) (83,928) (22,002) (145,054)
Net Position,January 1, Restated 1,429,696 3,379,803 303,396 5,124,941 18,448,578 28,686,413
Net Position-Ending $ 1,304,618 $ 3,642,531 $ 323,527 $5,001,380 $19,721,899 $29,993,956
151
City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31,2024
Page 1 of 2
Workers
Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Users $ - $ 1,188,462 $4,696,016 $8,908,208 $ 5,683,572 $ 20,476,258
Cash Paid to Suppliers for Goods&Services (35,898) (469,097) (3,253,379) (5,337,041) (1,953,014) (11,048,428)
Cash Paid to Employees (132,744) (461,800) (1,325,248) (3,693,600) (1,183,430) (6,796,822)
Other Cash Received - - 167,758 526 30,537 198,821
Net Cash Provided(Used)by Operating Activities (168,642) 257,565 285,148 (121,907) 2,577,665 2,829,829
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers In - - 313,359 583,535 813,165 1,710,059
Transfers Out - - (570,604) (20,520) - (591,124)
Net Cash Provided(Used)by Noncapital Financing Activities - - (257,245) 563,015 813,165 1,118,935
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITY:
Purchase of Capital Assets - - - (246,446) (4,015,342) (4,261,788)
Proceeds from Sales of Capital Assets - - - - 89,068 89,068
Proceeds from Insurance Settlements - - - - 10,000 10,000
Debt Principal Payment - - - (359,313) - (359,313)
Interest Payment on Debt - - - (24,305) - (24,305)
Net Cash Provided(Used)for Capital and Related Financing Activities - - - (630,065) (3,916,274) (4,546,339)
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Investments - - - (972,405) - (972,405)
Interest Received 51,981 242,776 10,778 149,896 401,557 856,987
Net Cash Provided(Used)in Investing Activities 51,981 242,776 10,778 (822,509) 401,557 (115,418)
Net Increase(Decrease)In Cash And Cash Equivalents (116,661) 500,340 38,681 (1,011,466) (123,887) (712,993)
Cash and Cash Equivalents-Beginning of Year 1,449,789 4,620,295 435,212 4,044,591 8,186,181 18,736,068
Cash and Cash Equivalents-End of Year $ 1,333,127 $ 5,120,636 $ 473,893 $ 3,033,125 $ 8,062,294 $ 18,023,075
CASH AT END OF YEAR CONSIST OF:
Cash and Cash Equivalents 1,333,127 5,120,636 473,893 3,033,125 8,062,294 18,023,075
Total Cash $ 1,333,127 $ 5,120,636 $ 473,893 $ 3,033,125 $ 8,062,294 $ 18,023,075
152
City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
City of Auburn,Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31,2024
Page 2 of 2
Workers
Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
RECONCILIATION OF NET OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
Operating Income or Loss $(177,058) $ 19,952 $ 98,841 $ (824,222) $ 10,971 $ (871,517)
ADJUSTMENTS TO RECONICLE OPERATING INCOME TO
NET CASH PROVDED (USED) BY OPERAING ACTIVITIES:
Change in Accounting Principles - - (39,124) (83,928) (22,002) (145,054)
Depreciation and Amortization - - - 839,345 2,158,029 2,997,374
Non-Operating Revenue(Expense) - - 167,758 526 30,537 198,821
Assets (Increases) Decreases
Customer Accounts - - (7,747) (4,840) - (12,587)
Due From Other Governmental Units - - - 4,515 - 4,515
Inventory - - - - 9,363 9,363
Pension Asset - - - - 39,020 39,020
Pension Deferred Outflows - - - - (51,162) (51,162)
Prepaids - - - (234,626) - (234,626)
Liability Increases (Decreases)
Current Payables 8,416 1,613 21,094 71,269 429,164 531,556
Employee Leave Benefits - - 44,326 105,771 38,644 188,741
Pension Liability - - - - (21,463) (21,463)
Claims Payables - 236,000 - - - 236,000
Pension Deferred Inflows - - - - (43,436) (43,436)
Due to Other Funds - - - 4,284 - 4,284
Total Adjustments 8,416 237,613 186,307 702,315 2,566,695 3,701,346
Net Cash Provided (Used) by Operating Activities $(168,642) $ 257,565 $285,148 $ (121,907) $ 2,577,665 $ 2,829,829
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Increase (Decrease) in Fair Value of Investment - - - (1,315) - (1,315)
Total $ - $ - $ - $ (1,315) $ - $ (1,315)
153
City of Auburn: 2024 Annual Comprehensive Financial Report Fund Financial Statements &Schedules
Ao ITY F * *
UBURN
c
WASHINGTON
154
City of Auburn: 2024 Annual Comprehensive Financial Report Statistical Section
City of Auburn
STATISTICAL SECTION
December 31, 2024
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 156
Schedule 2 Changes in net position 157
Schedule 3 Fund balances, government funds 158
Schedule 4 Changes in fund balances, government funds 159
Schedule 5 Tax revenues by source, government funds 160
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 161
Schedule 7 Property tax data 162
Schedule 8 Property tax levies and collections 164
Schedule 9 Principal taxpayers-property taxes and sales taxes 165
Schedule 10 Retail tax collections by sector 167
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 168
Schedule 12 Computation of legal debt margin 169
Schedule 13 Legal debt margin ratios 169
Schedule 14 Computation of net direct and estimated overlapping debt 170
Schedule 15 Ratios of net general bonded debt to assessed value 171
Schedule 16 Pledged revenue bond coverages 172
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 173
Schedule 18 Major employers 174
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 175
Schedule 20 Operating indicators by department 176
Schedule 21 Capital indicators by department 177
Schedule 22 Utility customers by customer class 178
155
City of Auburn: 2024 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 1
NET POSITION BY COMPONENTS
Last Ten Fiscal Years
(Accrual Bass of Accounting)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental activities.
Net Investment in Capital Assets $361,094,242 $367,128,894 $373,368,906 $375,208,981 $372,887,236 $372,441,433 $373,890,921 $371,760,693 $ 368,081,520 $ 386,069,275
Restricted 19,470,880 26,745,270 29,854,240 30,001,950 33,911,413 32,842,097 38,133,392 60,149,452 56,940,320 53,241,187
Unrestricted 40,928,090 42,900,814 42,803,759 42,377,297 59,840,168 67,845,872 88,819,913 84,938,721 125,324,355 157,166,929
Total governmental activities net position 421,493,212 436,774,978 446,026,906 447,588,227 466,638,817 473,129,402 500,844,225 516,848,866 550,346,194 596,477,392
Business-type activities: - - - - - - -
Net Investment in Capital Assets 187,604,782 195,490,061 205,677,614 208,136,620 212,172,136 208,850,752 228,161,102 230,375,106 228,344,433 243,501,045
Restricted 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 8,545,059
Unrestricted 33,314,804 41,133,564 41,957,967 49,412,899 57,238,306 64,898,539 70,857,950 70,116,439 81,832,212 83,158,264
Total business-type activities net position 225,683,926 239,734,039 249,492,551 259,474,085 271,412,151 285,220,600 300,658,947 308,049,399 317,880,445 335,204,367
Primary government: - - - - - - -
Net Investment in Capital Assets 548,699,024 562,618,955 579,046,520 583,345,601 585,059,372 581,292,185 602,052,023 602,135,799 596,425,953 629,570,320
Restricted 24,235,220 29,855,684 31,711,210 31,926,516 35,913,122 44,313,406 39,773,287 67,707,306 64,644,120 61,786,246
Unrestricted 74,242,894 84,034,378 84,761,726 91,790,196 117,078,475 132,744,411 159,677,863 155,055,160 207,156,567 240,325,193
Total primary government net position $ 647,177,138 $676,509,017 $695,519,457 $707,062,313 $738,050,969 $758,350,002 $ 801,503,173 $824,898,266 $ 868,226,640 $ 931,681,759
Source:City of Auburn,Finance Department
This schedule has been restated for the changes disdosed in Note 19 of ACFR 2024.
156
City of Auburn: 2024 Annual Comprehensive Financial Report Statistical Section
City of Auburn.Washington
SCHEDULE 2
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Expenses
Governmental activities
General government $ 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 $ 19.661,280
Public safety 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 39,509,957
Transportation 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 19,444,504
Physical environment 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 5,099.970
Culture and recreation 12,096.651 12.811,186 13,539.098 13.665.612 13,400.311 11,681,611 12,332,974 14,800,322 16,735,629 17.541,128
Economic environment 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 6.769.342
Health and human services 925,299 573,115 674,270 787,535 619,247 671,257 2,107,798 2.179,401 3.432,638 1,368,619
Interest on long-term debt 1 986 853 1 709.647 1.555 803 1 502.236 1.466.217 650.215 651 329 677 414 731 092 667.390
Total governmental activities expenses 77.371 995 79 863.739 83.882 324 82 039.359 78.943.351 90.358.785 85 495 650 97 573 904 106.525 331 110,062,190
Business-type activities
Water 13,693,398 13,110,109 12,411,136 12,503,636 13,031,993 12,401,099 13,680,220 14,192,151 16,460,821 17.093.085
Sewer 23,992,161 25,685,370 25,360,718 26.213,221 26,907,482 25.860,687 26,841,698 28,493,463 28,027,531 31.779.474
Storm drainage 8,309,912 8,816,338 8,982,234 9,377,025 9,131,965 8.664,092 9.562,181 10,389,925 11,424,247 12,474,341
Solid waste 12,907,832 13,460,155 14,539,703 15,311,654 15,682.121 15,620,963 18,383,884 26,457,098 29,397,761 30.333.559
Airport - - - - - - - - 2,317.741 2.318.882
Non-major business-type activities 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 1.844.622
Total business-type activities expenses 60.965.998 63.222.665 63.400.348 65.592.378 67.381.764 65.150.593 71.549.224 83.286.998 89.421.172 95.843.964
Total primary government expenses $138.337.993 $143.086.404 $ 147.282.671 $ 147.631.737 $146.325.115 $155.509,378 $157.044.874 $180.860.902 $195.946.504 $ 205.906.154
Program revenues
Gov mmental activities
Charges for services
General Government $ 1,243,263 $ 939,184 $ 1,241.905 $ 1,462,867 $ 3,758,197 $ 3,584,821 $ 4,545,962 $ 4,506,672 $ 6,238,136 $ 6,588,668
Public Safety 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 5,035,623
Transportation 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 1,911,610
Physical Environment 384,485 260,555 431.580 611,342 503,798 671,543 719,487 427,515 587,681 532,839
Culture and Recreation 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 3.624,514
Economic Environment 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 1.592.420
Total charges for services 11,109,069 12,338,041 11,790.334 11,050,781 16,621,946 12.487,875 18,776,026 12,467,659 19,701,594 19,285,675
Operating grants and contnbutions 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 15.256,510
Capital grants and contnbutions 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 13.300.835
Total governmental activities program revenues 34 869 926 28 381.180 27.277 482 22 948.432 26.478.689 28.847.058 35.492 125 28.511 485 35.370178 47.843.020
Business-type activities
Charges for services 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 98,699,146
Operating grants and contnbutions 106,286 106.286 106,286 106,286 106.286 106,286 - - -Capital grants and contnbutions 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 7.222.402
Total business-type activities program revenues 69.319 282 76 415.081 72.690 054 74 396.795 77.108.067 75 591.919 87.088 168 88.718 443 94.919 523 105,921.549
Total primary government program revenues 104,189,208 104,796,261 99,967,536 97,345,227 103,586.756 104.438,977 122,580,293 117,229,928 130.289,701 153.764.568
Net(expense)/revenue
Governmental activities (42,502,069) (51,482.559) (56,604,841) (59,090,927) (52,464,662) (61,511,727) (50,003,525) (69,062,419) (71,155,153) (62,219,170)
Business-type activities 8.353.284 13.192.416 9.289.706 8.804.417 9.726.303 10.441.326 15.538.944 5.431.445 5.498.350 10.077.584
Total primary government net expense $ (34.148.785) $ (38.290.1431 $ (47.315.135) $ (50.286.5101 $(42.738.359) $ (51.070.401) $(34.464.581) $(63.630.974) $(65.656.8031 $ (52.141.586)
General revenues and other changes in net position
Governmental activities
Taxes
Property taxes $ 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 $ 25,096,500
Retail sales and use tax 21,125,730 21,475.335 22,333,454 21,996,115 22,212,601 21,900,597 25,289,050 26,295,124 29,676,876 29,410,605
Intertund utility taxes 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 8,633,995
Utility taxes 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 12,049,461
Exuse taxes 4,999,517 5,057,013 4.141,146 4,393,134 5,650,339 4,580,114 6,463,047 5,998,045 3,597,878 6,227,997
City Business and Occupation l'l - - - - - - - 4,664,551 12,198,944 16,691,650
Other taxes 4,722,482 5,160,215 5.253.964 5,213,217 4,751,163 3,846314 5.031,185 4,635,655 4,827,213 4,115.378
Investment earnings 118,399 332,520 787,786 1,657,481 2,134,741 1,027.312 (114,738) 815,061 6,960,578 6.764.555
Miscellaneous 194,600 157.874 204,306 425,844 258.502 252.441 572,013 1,789,159 799,586 157,991
Transfers (462 9551 424.173 454 436 414.975 394.287 264.371 395 869 304 449 1.151 660 555.540
Total governmental activities 61 068 488 64 251.768 69.074 772 70 041.625 71.515.252 68.002.312 77.718 348 85.067 061 104.652 481 109,703,671
Business-type activities
Investment earnings 70,560 196.595 479,132 989,564 1,387.405 364,027 17,401 1,068,685 3.937,300 3.843.490
Miscellaneous 1,881,835 1,085.275 444,110 602,528 1,218.645 3.267,467 277,871 1,194,771 1,547,056 4.302.800
Transfers 462,955 (424,173) (454,436) (414,975) (394,287) (264.371) (395,869) (304,449) (1,151,660)_ (555.540)
Total business-type activities 2,415,350 857.697 468,806 1,177,117 2,211,763 3,367,123 (100,597) 1,959,007 4,332,696 7.590.749
Total primary government $ 63.483.838 $ 65.109,465 $ 69.543.578 5 71.218,742 $ 73,727,015 5 71.369,435 5 77.617.751 $ 87.026.068 $ 108.985.177 $ 117.294.420
Change in net position Before Change in Accounting Principle
Governmental activities 18,566,419 12,769.209 12,469,931 10,950,698 19,050,590 6,490,585 27,714,823 16,004,641 33.497,328 47,484,501
Business-type activities 10 768 634 14 050 113 9.758 512 9 981.534 11.938.066 13.808.449 15 438 347 7 390 452 9.831 046 17.668.333
Total primary government $ 29,335,053 $ 26,819.322 $ 22.228,443 $ 20,932,232 $30,988,656 $ 20,299,034 $ 43.153,170 $ 23,395,093 $ 43.328,374 $ 65,152.834
Change in Accounting Principle
Governmental activities (13,456,606) 2,512,557 (3,218,004) (9,389,375) - - - - - (1,353,302)
Business-type activities (6.023 3151 - - - - - - - - (344.412)
Total primary government $ (19.479 921) $ 2 512.557 $ (3.218 004) $ (9 389.3751 $ - $ - $ - $ - $ - $ (1 697.714)
Change in net position After Change in Accounting Principle
Governmental activities 5,109,813 15,281,766 9,251,927 1,561,323 19,050,590 6,490,585 27,714,823 16,004,642 33,497,328 46,131,199
Business-type activities 4 745 320 14 050 113 9.758 512 9 981.534 11.938.066 13.808.449 15 438 347 7 390 452 9.831 046 17,323,921
Total pnmary government $ 9.855 133 5 29 331.879 5 19.010 439 5 11 542.857 $30.988.656 $ 20.299.034 5 43.153 170 $ 23 395 094 $ 43.328 374 $ 63,455,120
City implemented a City Business and Occupation Tax January 1,2022.
This schedule has been restated for the changes disclosed in Note 19 of ACFR 2024
Source City of Auburn,Finance Department
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City of Auburn: 2024 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)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Nonspendable $127 $ - $30,453 $38,179 $36,097 $47,085 $49,674 $57,740 $63,786 $200,621
Restricted - - - - - - - - $1,942,799 2,339,920
Committed - - - - - - - 1,311,450 - -
Assigned 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 4.825,162
Unassigned 20,267.776 24,991,081 25,414,801 24,627.984 19.068,746 30,634.592 38.646,995 45,889.138 66.551.054 88,623.136
Total General Fund 27,552,062 32,151,179 34,760,782 34,041,633 36,223,116 41,939,224 47,900,705 58,059,775 79,037,228 95,988,840
All other governmental funds
Nonspendable 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 2,224,098
Restricted 17,885,173 25,079,227 28,137,106 28,226,498 32,085,350 30,916,914 36,123,035 39,207,433 35,063,939 36,671,909
Committed 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 12,710,633
Assigned 4,755,182 1,226,315 1,221,511 2,827,045 2,239,557 1,906,717 1,579,346 1,800,573 4,057,220 5,336,820
Total All Other Governmental Funds $27,884,781 $33,393,225 $34,298,859 $35,908,652 $39,323,122 $38,658,926 $44,995,839 $47,393,632 $ 53,051,210 $56,943,461
This schedule has been restated for the changes disclosed in Note 19 of ACFR 2024
Source:City of Auburn,Finance Department
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City of Auburn: 2024 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 4
CHANGES IN FUND BALANCES,GOVERNMENT FUNDS
Last Ten Fiscal Years
(Modified Accrual Bann of Accoutmg)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues
Taxes $56,632,337 $58,279,984 $ 62,425,246 $62,430,346 $64,032,701 $62,638,993 $71,897,684 $77,526,441 $ 91,070,600 $93,076,945
Licenses and permits 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 2,643,043
Intergovernmental 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 20,361,016
Charges for services 7,321,295 11,563,678 7,117,774 6,471,503 10,467,203 8,670,078 12,437,155 10,499,530 12,427,509 12,118,218
Fines and forfeits 938,775 905.921 882,254 920,187 914,240 635,209 434,042 390,200 2,733,886 3.926,653
Special assessments 7,494 4,111 3,835 2,210 2,807 712 591 - -Investment earnings 117,942 279,058 672,713 1,308,888 1,767,742 1,005,175 (187,615) 564,524 6,264,020 5,903,651
Miscellaneous 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 8,390,217
Total revenues 82,603,140 88,606,337 91,162,511 86,821,196 93,554,329 90,545,094 103,560,171 110,559,858 133,406,714 146,419,742
Expenditures
General government 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 19,560,955
Public safety 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 42,343,117
Transportation 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 17,297,275
Physical environment 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 5,869,441
Economic environment 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 7,229,926
Health and human services 925,299 573,115 674.270 787,535 619,247 821,362 2,192,261 1,982,524 3,292,302 1,230,553
Culture and recreation 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 16,676,839
Capital outlay lil 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 12,100,585
Debt service- - -
Principal 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 1,954,089
Interest/other 1,801,109 1,632,786 1,590,525 1,537,504 1,478,169 822,678 847,629 868,442 915,318 871,115
Total expenditures 78,928,940 81.195,654 87,671,516 86.585,527 88,967,026 86,469,056 92,373.155 105,710.370 110.144,627 125,133,893
Excess of revenues
over(under)expenditures 3,674,200 7,410,683 3,490,995 235,669 4,587,303 4,076,038 11,187,016 4,849,488 23,262,087 21,285,849
Other financing sources(uses)
Transfers in 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 14,457,402
Transfers out (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) (15,020,797)
Insurance recovenes 153,041 83,737 134,003 288,518 177,154 189,322 416,066 103,473 497,371 113,283
Issuance of debt - 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 21,952 - 2,700 - - - - 2,226,784 10,000 8.125
Total other financing sources(uses) 607,197 184,321 24,242 654,975 1,008,650 975,874 1,111,378 7,707,375 3,372,944 (441,986)
Net change in fund balances $ 4,281,397 $ 7,595,004 $ 3,515,237 $ 890,644 $ 5,595.953 $ 5,051,912 $12,298,394 $12,556,863 $ 26,635,031 $20,843,863
Debt service as a percentage of noncapital 5.50% 5.14% 4.66% 4.38% 3 72% 3 36% 2.58% 2.72% 2 93% 2 80%
expenditures
(1) Capital outlay reported in govemmental funds for 2024 are$12,100,585 plus$12,210,072 which is reported for each functional
activity with the other funds results in total capital outlay of$24,310,657 as reported on the Reconciliation of the
Statement of Revenues.Expenditures,and Changes in Fund Balances of Govemment Funds to the Statement of Activities.
(2) This schedule has been restated for the changes disclosed in Note 19 of ACFR 2024.
Source.City of Auburn,Finance Department
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City of Auburn: 2024 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(') Other Total
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 29,676,876 7,771,366 13,071,264 3,485,771 12,051,586 - 90,576,795
2024 25,102,231 29,410,605 8,633,995 12,049,461 6,227,997 11,652,656 - 93,076,945
Change
2015-2024 44.8% 39.2% 102.6% 36.3% 24.6% 100.0% -100.0% 64.4%
(1)City implemented a City Business and Occupation Tax January 1,2022.
Source: City of Auburn,Finance Department
(2)The information for 2023 has been restated for the changes disclosed in Note 19 of ACFR 2024.
Figure 5: Tax Revenues by Source
2015-2024
$100
$90 ■
$80 .
c $70 . .'■'
City Business
$60 , , . , &Occupation
$50 I
, , ,
.......
.■. ■ ■Excise&Other
_. . . .• • • . . •. ❑Utility
$40 , • • • •
• ❑Interfund
$20 — . . . Utility
$20 — . .
■Sales&Use
$10 —
$0 -
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
160
City of Auburn: 2024 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
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
2024 179,651 1,092,324 16,670,380 17,942,355 1.40
Source: King County Dept of Assessments& Pierce County Assessor-Treasurer
Figure 6: Assessed Value by Type
2015-2024
$18
$16
$14
$12 0 State Property
o $10 ❑Personal Property
— ■Land and Buildings
$8
$6
$4
$2
$0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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City of Auburn: 2024 Annual Comprehensive Financial Report Statistical Section
City of Auburn, Washington
SCHEDULE 7
PROPERTY TAX DATA
Last Ten Fiscal Years
Page 1 of 2
Item 2015 2016 2017 2018
Assessed and estimated actual values (1)
Estimated and actual value(in thousands) $ 8,366,653 $ 8,967,119 $ 9,721,877 $ 10,699,721
Assessed value(in thousands) 8,366,653 8,967,119 9,721,877 10,699,721
Ratio of assessed to actual 100% 100% 100% 100%
Property tax rates (1)
Direct regular and special
General fund $ 2.08085 $ 2.04719 $ 2.19668 $ 2.03239
Subtotal 2.08085 2.04719 2.19668 2.03239
Overlapping regular and special (1)
Auburn School District $ 6.14079 $ 5.82831 $ 6.74299 $ 6.29971
King County 1.34522 1.48027 1.38294 1.32735
State of Washington 2.28514 2.16898 2.03205 2.91820
Port of Seattle 0.18885 0.16954 0.15334 0.13518
Sound Transit - - 0.25000 0.22745
Emergency Medical Services 0.30217 0.28235 0.26305 0.23940
Hospital District 0.50000 0.50000 0.50089 0.45689
King County Library District 0.50276 0.47714 0.45118 0.41190
Valley Regional Fire Authority 1.18043 1.13495 1.06821 0.98189
King County Flood Zone 0.13860 0.12980 0.11740 0.10708
Subtotal 12.58396 12.17134 12.96205 13.10505
Total direct and overlapping $ 14.66481 $ 14.21853 $ 15.15873 $ 15.13744
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
2015-2024
$3.00
C
r0
0
j $2.50
4
`o $2.00
in
$1.50
$1.00
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
162
City of Auburn: 2024 Annual Comprehensive Financial Report Statistical Section
Page 2 of 2
2019 2020 2021 2022 2023 2024
$ 11,489,516 $ 12,380,036 $ 13,368,770 $ 14,691,361 $ 15,666,686 $ 15,998,170
11,489,516 12,380,036 13,368,770 14,691,361 15,666,686 15,998,170
100% 100% 1000/0 100% 100% 100%
$ 1.92435 $ 1.81928 $ 1.76739 $ 1.66241 $ 1.39068 $ 1.39696
1.92435 1.81928 1.76739 1.66241 1.39068 1.39696
$ 3.81351 $ 5.19948 $ 5.20244 $ 4.98502 $ 4.40844 $ 4.70683
1.21906 1.23953 1.24688 1.22827 1.09023 1.33792
2.62922 3.02799 3.08823 2.81695 2.31104 2.51751
0.12266 0.11944 0.11984 0.11258 0.09429 0.10470
0.20700 0.19937 0.19709 0.18409 0.15576 0.16483
0.21762 0.26500 0.26499 0.24841 0.18498 0.18498
0.41673 0.40069 0.38511 0.35434 0.32241 0.35434
0.37441 0.36040 0.35733 0.32757 0.26223 0.28875
0.92352 0.86897 1.10439 1.03322 0.86512 0.86355
0.09660 0.09199 0.08909 0.08146 0.06717 0.07067
10.02033 11.77286 12.05539 11.37191 9.76167 10.59408
$ 11.94468 $ 13.59214 $ 13.82278 $ 13.03432 $ 11.15235 $ 11.99104
Figure7b: PropertyTax Rates
Last Ten Fiscal Years
$14.00 0 Sound Transit
$12.00 = - M CIHospital District
C ■ King County Flood Zone
03
n $10.00^ ' 0 Valley Regional Fire Authority
1Qa $8.00 -_-- , - ■ King County Library District
01 --
111141"
0 Emergency Medical Services
$6.00 ,
• Port of Seattle
$4.00
0 State of Washington
$2.00 0 King County
$0.00 • Auburn School District
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
163
City of Auburn: 2024 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:
2015 15,363,427 15,226,048 99.1% 177,647 $ 15,403,695 100.3% $ (40,268)
2016 16,031,663 15,897,626 99.2% 198,303 16,095,929 100.4% (64,266)
2017 18,648,710 18,418,844 98.6% 224,899 18,643,742 100.0% 4,967
2018 19,120,202 18,872,111 98.8% 217,645 19,089,756 99.8% 30,446
2019 19,541,800 19,298,789 98.8% 228,429 19,527,218 99.9% 14,582
2020 20,040,027 19,775,977 98.7% 246,353 20,022,330 99.9% 17,697
2021 20,709,055 20,480,037 98.9% 210,106 20,690,143 99.9% 18,912
2022 21,730,840 21,449,439 98.5% 227,822 21,677,260 99.8% 53,580
2023 21,591,907 21,316,712 98.7% 167,733 21,484,445 99.5% 107,462
2024 22,186,306 21,927,219 98.8% - 21,927,219 98.8% 259,087
$ 402,199
Pierce County:
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% 9,974 2,515,397 100.0% (0)
2022 2,626,387 2,615,456 99.6% 9,601 2,625,057 100.1% 1,330
2023 2,635,778 2,623,794 99.5% 9,577 2,633,371 100.1% 2,407
2024 2,617,400 2,604,315 99.5% - 2,604,315 100.5% 13,085
$ 16,822
Total current levy balance $ 419,021
FIGURE 8:TEN YEARS COLLECTION OF LEVIED PROPERTY TAXES
Last Ten Fiscal Years
100.5% -
100.0% t Collection
99.5% percentage
within the fiscal
99 0% • ~ year of the levy
98.5% (Total collection
98 0% percentage
97.5%
97.0% I I I I I I I I I
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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City of Auburn: 2024 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 9a
PRINCIPAL TAXPAYERS-PROPERTY TAXES
Current Year and Ten Years Ago
2024 2015
Percentage Percentage
of Total City of Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Value Rank Assessed Value
BOEING $ 541,556,049 1 3.39% $ 549,141,832 1 6.56%
SAFEWAY INC C/O COMP PROPER 264,168,651 2 1.65% 79,001,900 4 0.94%
EPROPERTY TAX INC DEPT 207 260,577,400 3 1.63% N/A N/A
PPF Industrial (formerly UPS Supply Chain Solutions) 223,460,700 4 1.40% 45,129,700 7 0.54%
USPP VALLEY CENTRE CORPORAT 205,793,700 5 1.29% N/A N/A
C/O PROLOGIS-RE TAX 146,879,500 6 0.92% N/A N/A
MARVIN F POER AND COMPANY 143,747,600 7 0.90% N/A N/A
GLIMCHER REALTY 108,570,245 8 0.68% 102,455,418 2 1.22%
LIT INDUSTRIAL 90,967,700 9 0.57% N/A N/A
AUBURN 18 BUSINESS PARK LLC 84,204,400 10 0.53% N/A N/A
PUGET SOUND ENERGY N/A 92,835,660 3 1.11%
WAL-MART PROPERTY N/A 27,591,900 8 0.33%
Belara Communities LLC N/A 54,061,800 6 0.65%
Muckleshoot Indian Tribe N/A 20,830,100 9 0.25%
Qwest Corporation N/A 20,179,099 10 0.24%
TOTALS $ 2,069,925,945 12.94% $ 991,227,409 11.85%
Source: King County and Pierce County Departments of Assessments
Total assessed value for 2024: $ 15,998,170,371
Total assessed value for 2015: $ 8,366,652,723
FIGURE 9a-1:TOP TAXPAYER ASSESSED VALUE AS A FIGURE9a-2:TOP 10 TAXPAYERS ASSESSED VALUE AS A
PERCENTAGE OF TOTAL ASSESSED VALUE PERCENTAGE OF TOTAL ASSESSED VALUE
Current Year and Ten Years Ago Current Year and Ten Years Ago
25
25.A
20°L 20%
15/ 15^1
10% 10%—
5oi %—
2024 2015 2024 2015
165
City of Auburn: 2024 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 9b
PRINCIPAL TAXPAYERS-SALES TAXES
Current Year and Ten Years Ago
2024 2015
Percentage Percentage
Sales of Total City Sales of Total City
Tax Sales Taxes Tax Sales Taxes
Received Sector(1) Rank Received Received Sector(1) Rank Received
$ 915,346 Automotive 1 4.0% $ 503,003 Transportation Manufacturing 1 3.0%
640,870 Retail Trade 2 2.8% 466,181 Automotive 2 2.8%
480,268 Retail Trade 3 2.1% 449,995 General Retail 3 2.7%
445,009 Automotive 4 1.9% 444,616 Automotive 4 2.6%
417,311 Automotive 5 1.8% 349,222 Automotive 5 2.1%
392,061 Automotive 6 1.7% 323,965 Automotive 6 1.9%
382,257 Automotive 7 1.7% 266,295 Bldg.Material&Garden 7 1.6%
370,733 Services 8 1.6% 254,760 General Retail 8 1.5%
338,774 Automotive 9 1.5% 248,552 Construction of Buildings 9 1.5%
317,187 Miscellaneous 10 1.4% 231,888 Automotive 10 1.4%
$ 4,699,816 20.5% $ 3,538,477 21%
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.
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City of Auburn: 2024 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)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
RETAIL TRADE SECTOR
Automotive/gas $ 3,707 $ 3,659 $ 3,972 $ 4,122 $ 4,069 $ 3,827 $ 4,555 $ 4,780 $ 4,937 $ 4,916
Furniture 254 185 197 210 222 209 290 440 223 211
Electronics&appliances 295 221 211 229 277 300 344 190 420 399
Building materials 590 579 580 576 652 751 803 789 730 699
Food stores 368 397 369 388 406 451 487 565 621 651
Health&personal care 221 284 369 420 426 348 391 406 402 367
Apparel 1,080 1,136 1,119 1,170 1,236 873 1,123 1,137 1,129 1,143
General merchandise 988 1,018 993 221 818 878 917 1,026 875 896
Misc.retail trade 1,193 1,032 1,033 1,827 1,399 1,689 2,107 2,100 2,173 2,153
Subtotal-Retail Trade 8.695 8,512 8,843 9,163 9,506 9,327 11,017 11.433 11,510 11,434
SERVICE SECTOR
Information $ 526 $ 630 $ 662 $ 638 $ 668 $ 685 $ 760 $ 848 $ 919 $ 980
Finance&insurance 95 111 122 140 138 178 158 197 148 143
Real estate,rental,leasing 334 359 368 368 434 369 449 463 512 493
Professional,scientific,technical 195 238 239 254 344 394 482 514 551 577
Administrative,supply&remediation services 383 329 276 424 524 652 792 785 897 959
Educational 60 50 56 47 46 40 44 47 55 61
Healthcare&social services 82 92 75 93 93 111 99 120 110 108
Arts&entertainment 208 156 110 119 120 50 74 126 179 193
Accommodation&food service 1,159 1,218 1,276 1,435 1,469 1,205 1,429 1,528 1,567 1.636
Other services 603 788 728 711 609 537 637 767 786 779
Subtotal-Services 3,646 3,970 3,912 4,229 4,445 4,220 4,924 5,395 5,725 5.927
OTHER SECTORS
Construction $ 2,297 $ 2,292 $ 2,632 $ 2,310 $ 2,193 $ 3,068 $ 3,034 $ 2,828 $ 2,950 $ 2,710
Manufacturing 862 761 678 754 821 390 501 749 531 477
Transportation 66 99 89 120 89 197 373 249 225 321
Wholesaling 1,229 1,265 1,363 1,469 1,496 1,346 1,424 1,578 1,668 1,612
Other business 72 67 65 154 265 308 410 428 390 424
Subtotal-Other 4,525 4,485 4,827 4,807 4,863 5,309 5,742 5,833 5,765 5,544
GRAND TOTAL $16,866 $16,967 $17,582 $ 18,198 $ 18,814 $18,856 $21,683 $22,661 $ 23,000 $22,905
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% 1.40% 1.40% 1.40% 1.50% 1.50% 1.60% 1.70%
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% 10.00% 10.00% 10.00% 10.10% 10.10% 10.20% 10.30%
Special sales tax rates
Restaurants-for stadium funding(1) 0.00% O.00% 0.00% 0.00% 0.00% 0.00% 0.00% O.00% 0.00% 0.00%
Motor vehicles 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%
Source: City of Auburn Finance Department and State of Washington
FIGURE 10:RETAIL TAX COLLECTIONS
City of Auburn:2015-2024
$24 I
$22
$2O • Other
$18 I , — • Wholesaling
oS15 r 1 — ■ Manufacturing
5 s 2 •M■� �'� — . Construction
10 -1- 0 Services
$ 1 �
$8 ,-,- • Other Retail
$6 ■ Automotive
$2
$0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
167
City of Auburn: 2024 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 Subscription Revenue Trust Fund Primary of Personal Per
Year Bonds Loans Leases Liability Liability Bonds Loans Government(2)
Income(') Capita
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 80,326,811 2.45% 905.09
2023 35,147,469 2,507,791 - 4,406,022 4,127,051 30,223,146 4,796,751 81,208,230 2.21% 914.30
2024 33,037,389 2,310,416 - 122,303 3,393,028 27,629,177 7,808,717 74,301,030 1.99% 835.31
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
900 I • -----,+r
600
300
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
168
City of Auburn: 2024 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 12
COMPUTATION OF LEGAL DEBT MARGIN
As of December 31,2024
General Capacity Special Purpose Capacity
Parks and Utility Total
Councilmanic Excess Levy Open Spaces Purpose Capacity
December 31,2024-Total Assessed Value:
$ 19,438,866,350
2.5%of Assessed Value $ - $ 485,971,659 $ 485,971,659 $ 485,971,659 $1,457,914,977
1.5%of Assessed Value 291,582,995 (291,582,995) - - -
Statutory Debt Limit 291,582,995 194,388,664 485,971,659 485,971,659 1,457,914,977
Debt Outstanding 32,421,975 - - - 32,421,975
Net Debt Outstanding 32,421,975 - - - 32,421,975
Remaining Debt Capacity $ 259,161,020 $ 194,388,664 $ 485,971,659 $ 485,971,659 $1,425,493,002
City of Auburn,Washington
SCHEDULE 13
LEGAL DEBT MARGIN RATIOS
Last Ten Fiscal Years
(Expressed in Thousands)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Debt Limit $661,996 $716,628 $791,936 $854,513 $923,770 $990,892 $1,078,980 $1,317,264 $1,340,238 $1,457,915
Total net debt
applicable to limit 59,409 57,152 54,208 52,097 46,115 40,356 38,474 36,525 34,510 32,422
Legal debt margin $602,588 $659,476 $737,728 $802,416 $877,655 $950,535 $1,040,505 $1,280,738 $1,305,728 $1,425,493
Total net debt
applicable to the limit
as a percentage of debt limit 8.97% 7.98% 6.85% 6.10% 4.99% 4.07% 3.57% 2.77% 2.57% 2.22%
169
City of Auburn: 2024 Annual Comprehensive Financial Report Statistical Section
City of Auburn, Washington
SCHEDULE 14
COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT
As of December 31, 2024
Net Debt Percent Bonded Amount
Outstanding Applicable(3) Applicable
Net direct debt:
Net direct debt-City of Auburn(1) $ 38,863,136
Estimated net overlapping debt: (2)
King County $ 1,006,941,000 1.83% $ 18,427,020
Port of Seattle 445,465,000 1.83% 8,152,010
School District No.210(4) 480,917,000 3.07% 14,764,152
School District No.408 418,665,000 77.60% 324,884,040
School District No.415 150,606,000 2.00% 3,012,120
Rural Library District - 2.84% -
Valley Regional Fire Authority 54,750,000 89.30% 48,891,750
Pierce County 121,670,000 0.92% 1,119,364
Total estimated net overlapping debt 419,250,456
Total direct and overlapping debt $ 458,113,591
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 8/31/2024.
170
City of Auburn: 2024 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
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
2024 88,950 15,998,170 33,037,389 - 33,037 0.21% 371
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 $800
$700
0.0080 $600
2
ji 0.0060 $500
v • ♦ $400
0.0040 $300
0.0020 $200
$100
- I I I I I I I I , $0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Year
f Debt/AV —A—Debt/Pop
171
City of Auburn: 2024 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(1) Operating Net Revenue Times
Year Revenue Expense Available Principal Interest Total (3) Coverage
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
2024 68,271,106 50,451,240 17,819,866 2,792,225 1,210,433 4,002,658 4.45
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: UTILITYBONDCOVERAGES
Last Ten Fiscal Years
$20
$18
$1
$14 4,----0--_
$12
ST
o $10
$8
$6
$4 . i . . . ■ -N-
$2 I
$0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
YEAR
+Net revenue available f Debt service requirements
172
City of Auburn: 2024 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 17
POPULATION, INCOME AND HOUSING TRENDS
Last Ten Fiscal Years
Item 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
School enrollment(1) 15,663 15,945 16,525 16,949 17,300 16,702 16,880 17,640 17,545 17,839
Rate of unemployment(2) 4.9% 4.4% 4.4% 4.2% 3.5% 9.5% 6.4% 3.9% 3.8% 5.1%
Population(3) 75,545 77,060 78,960 80,615 81,720 81,940 88,080 88,750 88,820 88,950
Personal income(thousands of dollars)(4) $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 $3,739,992
Per capita personal income(4) $ 26,807 $ 26,918 $ 27,405 $ 27,940 $ 29,344 $ 31,229 $ 33,795 $ 35,288 $ 41,384 $ 42,046
Housing units(5)
One unit 16,042 16,167 16,373 16,616 16,674 17,046 17,128 17,185 17,215 17,234
Two or more 10,847 10,854 11,110 11,417 12,008 12,230 12,532 12,738 12,740 12,779
Mobile home or special 2,637 2,630 2,675 2,659 2,663 2,671 2,674 2,676 2,677 2,674
Total housing units 29,526 29,651 30,158 30,692 31,345 31,947 32,334 32,599 32,632 32,687
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
80,000 I _ ice. ■ = 1
60,000 t
40,000
Ill • • 1 4 1 1
20,000
0 I I I I I I I I I
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
-a-Population tTotal housing units
173
City of Auburn: 2024 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 18
MAJOR EMPLOYERS
Current Year and Ten Years Ago
2024 2015
Percentage Percentage
of Total City of Total City
Employer Product/service Employees Rank Employment Employees Rank Employment
The Boeing Company Aerospace 3,830 1 9.1% 5,993 1 16.3%
Auburn School District Education 2,592 2 6.2% 2,410 3 6.5%
Muckleshoot Tribal Enterprises Gaming 1,668 3 4.0% 1,650 4 4.5%
Green River Community College Education 1,397 4 3.3% 1,315 6 3.6%
Multicare Auburn Medical Center* Hospital 906 5 2.2% 1,580 5 4.3%
Safeway Distribution Center Distribution Center 787 6 1.9% 870 8 2.4%
City of Auburn Municipal 771 7 1.8% - - 0.0%
Costco Wholesale/Optical#190 Wholesale 720 8 1.7% - - 0.0%
FAA** Gov't 451 9 1.1% - - 0.0%
Ply Gem Pacific Windows Corp. Retail 438 10 1.0% - - 0.0%
The Outlet Collection Retail 3,208 2 8.7%
Emerald Downs Racetrack Horse Racing 1,162 7 3.2%
Social Security Administration Gov't/public offices 660 9 1.8%
Zones,Inc. Technology reseller 644 10 1.7%
Totals 13,560 32.3% 19,492 52.9%
2024-City of Auburn,Economic Development
2015-City of Auburn ACFR
"Previously Auburn Regional Medical Center.
FIGURE18a:AUBURN EMPLOYMENT BASE FIGURE18b:AUBURN EMPLOYMENT BASLPERCENTAGE
PERCENTAGE OF TOP EMPLOYER COMPARED TO ALL OF TOP 10 EMPLOYERS COMPARED TO ALL EMPLOYERS
EMPLOYERS Last Ten Fiscal Years
Last Ten Fiscal Years
100%
100%
80% 80%
1
7
60% 6D%
■Top employer ■Top 10 employers
�% 4D% ■All employers
■All employers
20%
20%
D%
2015 .i24 D%
20:f 2024
174
City of Auburn: 2024 Annual Comprehensive Financial Report Statistical Section
City of Auburn, Washington
SCHEDULE 19
STAFFING LEVELS BY DEPARTMENT
Last Ten Fiscal Years
Department 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Mayor 3 3 3 3 3 4 5 6 7 3
Administration 8 10 11 12 8 7 5 5 5 5
Human Resources 8 9 8 8 8 9 8 8 9 10
Finance 22 22 22 22 24 24 25 26 27 28
Legal 14 14 15 15 16 16 21 21 21 21
Community Development 26 26 26 25 32 31 32 33 33 28
Human Services - - - - - - - - - 4
Office of Equity - - - - - - - - - 3
Police 129 131 138 140 140 140 139 139 139 140
Public Works 50 53 54 55 55 55 55 55 56 60
Parks,Arts and Recreation 45 47 47 47 49 48 48 48 51 51
Street 19 19 20 20 21 21 21 23 23 22
Water 23 23 23 23 23 23 23 24 24 23
Sewer 10 10 10 10 10 10 10 10 11 11
Storm Drainage 10 10 10 12 12 12 12 12 14 12
Solid Waste 2 2 2 2 - - - - - -
Airport(1) - - - 3 3 3 3 3 3 3
Cemetery 5 6 6 6 6 6 6 7 7 7
Facilities 10 10 10 10 11 11 11 11 11 11
Multimedia 4 4 4 4 4 4 4 4 4 4
Innovation&Technology 16 16 17 17 18 18 18 18 19 17
Equipment Rental 12 12 12 12 12 12 13 13 14 17
TOTAL 416 427 438 446 454 453 459 466 478 480
Source: City of Auburn Finance Department
(1) In 2018,3.0 FTEs were added to the Airport and the Airport is now managed in-house.
FIGURE 19:STAFFING LEVELS
BY TYPE OF SERVICE
Last Ten Fiscal Years
160
740 - r NH
120 - ■20I5
a _ ❑2016
E too - J
— ■20I7
a --••••—
Es0 f 1712018
r---- ■2019
60 ■2020
02021
40 - ■2022
❑2023
20 - 2024
Fr i ni::
I , . L • I-I I
Police P_fohc Parks,Arts& Uthties Ac.ntsnt.atco Corranunity Other
Works,ht.-eets Recreation Development
175
City of Auburn: 2024 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 20
OPERATING INDICATORS BY DEPARTMENT
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Planning*
Commercial permits 386 410 320 322 338 270 278 232 218 232
Commercial construction value($1,000's) $ 66,223 $ 151,220 $ 74,840 $ 72,623 $ 157,026 $ 93,920 $ 101,169 $ 75,544 $ 53,701 $ 103,375
Residential permits 340 426 345 210 195 202 232 289 55 239
Residential construction value($1,000's) $ 63,370 $ 73,679 $ 52,750 $ 25,790 $ 18,832 $ 32,630 $ 37,018 $ 34,235 $ 20,649 $ 31,912
Police
Crimes:
Arson - - 19 20 22 19 16 32 16 18
Aggravated Assault 186 179 198 158 171 208 184 252 246 260
Burglary 851 727 722 615 547 587 611 828 773 454
DUI 188 158 194 223 180 186 159 111 136 172
Homicide 8 6 3 1 5 6 5 13 8 9
Narcotics 511 458 742 912 797 770 231 133 359 350
Rape 31 36 49 42 45 32 47 42 52 73
Robbery 91 98 117 115 125 125 136 127 207 114
Theft 2,728 2,235 2,169 2,945 2,223 2,922 3,269 3,566 3,503 3,186
Theft-motor vehicle 996 756 692 637 580 697 902 1,205 1,542 932
Traffic:
Non-criminal 5,489 5,926 5,074 5,573 4,372 3,421 3,411 2,044 2,300 3,050
Parking 3,737 3,822 3,777 3,477 4,425 2,990 3,013 2,928 2,584 3,063
Parks and Recreation
Athletic teams 321 328 306 312 315 15 158 259 344 333
Recreation activities 3,511 2,435 3,389 3,498 3,520 1,169 1,828 2,297 2,842 3,075
Golf course rounds 52,718 48,803 47,001 50,720 51,860 51,684 61,771 57,517 59,127 59,022
Senior center visits 38,485 36,636 35,454 32,464 77,378 35,417 35,133 31,593 37,103 43,395
Cultural activities 204 203 214 211 229 86 163 165 178 216
Museum audience served 13,535 14,380 13,570 15,153 14,638 3,463 6,441 5,061 15,613 11,820
Cemetery placements 237 281 264 263 253 273 353 331 326 273
Sources: Various city departments
*Includes the following permit types: Building,addition,tenant improvements,alterations and sign permits.
176
City of Auburn: 2024 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 21
CAPITAL ASSET INDICATORS BY DEPARTMENT
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General City
Total area(square miles) 30 30 30 30 30 30 30 30 30 30
Public Works
Miles of streets 254 238 238 247 248 245 247 247 249 245
Number of streetlights(I) 6,362 6,552 6,581 6,738 3,429 3,526 3,589 3,628 3,677 3,710
Number of traffic signals 95 95 95 95 94 95 96 96 112 96
Utilities
Number of services 14,787 14,872 14,746 14,769 14,781 14,909 15,021 15,107 15,129 15,154
Miles of water lines(1) 320 321 323 347 283 287 288 290 290 292
Miles of sanitary sewer lines(1) 223 224 225 227 206 209 209 210 210 211
Miles of storm lines(I) 294 319 337 362 234 240 244 246 249 251
Number of fire hydrants(1) 3,580 3,577 3,595 3,664 3,014 3,115 3,132 3,171 3,208 3,230
Public Safety
Number of police stations 2 3 3 3 3 4 4 3 4 3
Parks and Recreation
Total park acreage 977 988.7 986 986 986 986 986 986 986 986
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 31 31 30 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.
177
City of Auburn: 2024 Annual Comprehensive Financial Report Statistical Section
City of Auburn,Washington
SCHEDULE 22
NUMBER OF UTILITY CUSTOMERS BY CUSTOMER CLASS
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Water Customers by Class
Single Family Residential 11,973 12,054 12,010 12,010 12,028 12,078 12,132 12,162 12,183 12,188
Multifamily 1,003 1,002 1,009 1,012 1,010 1,023 1,027 1,027 1,028 1,031
Commercial 1,190 1,186 1,158 1,159 1,163 1,168 1,170 1,171 1,172 1,180
Mfr./Industrial 38 37 2 2 2 2 2 2 2 2
Schools 37 38 37 37 37 37 37 38 38 39
City Accounts 30 31 31 30 30 31 31 31 31 32
Irrigation 509 517 492 512 505 564 616 670 669 676
Total Retail Water Customers 14,780 14,865 14,739 14,762 14,775 14,903 15,015 15,101 15,123 15,148
Wholesale Water Customers 7 7 7 7 7 7 6 6 6 6
Sewer Customers by Class
Single Family Residential 12,890 13,091 13,124 13,176 13,234 13,319 13,368 13,411 13,438 13,449
Non-single Family Residential 2,728 2,725 2,724 2,728 2,731 2,749 2,758 2,761 2,759 2,768
Total Sewer Customers 15,618 15,816 15,848 15,904 15,965 16,068 16,126 16,172 16,197 16,217
Storm Customers by Class
Single Family Residential 16,222 16,200 16,566 16,610 16,665 16,723 16,820 16,867 17,269 17,325
Non-single Family Residential 1,679 1,913 1,671 1,691 1,696 1,702 1,753 1,759 1,762 1,781
Total Storm Customers 17,901 18,113 18,237 18,301 18,361 18,425 18,573 18,626 19,031 19,106
Sources: City of Auburn-Utility Billing
178