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06-29-2026 Agenda Packet
City Council CITY OF Study Session AjJJ31JJN4June 29, 2026 - 5:30 PM City Hall Council Chambers WASHINGTON AGENDA CALL TO ORDER PUBLIC PARTICIPATION A. The Auburn City Council Study Session Meeting scheduled for Monday, June 29, 2026, at 5:30 p.m. will be held in person and virtually. Virtual Participation Link: To view the meeting virtually please click the below link, or call into the meeting at the phone number listed below. The link to the Virtual Meeting is: https://www.voutube.com/user/watchauburn/live/?nomobile=1 To listen to the meeting by phone or Zoom, please call the below number or click the link: Telephone: 253 205 0468 Toll Free: 888 475 4499 Zoom: https://us06web.zoom.us/i/89568430056 ROLL CALL AGENDA MODIFICATIONS ANNOUNCEMENTS, REPORTS, AND PRESENTATIONS A. 2026 Quarter 1 Financial Report (Thomas) (20 Minutes) AGENDA ITEMS FOR COUNCIL DISCUSSION A. Ordinance No. 7023 Budget Amendment #5 (Thomas) (20 Minutes) An Ordinance amending the City's 2025-2026 Biennial Budget COUNCIL REPORTS ADJOURNMENT Agendas and minutes are available to the public at the City Clerk's Office and on the City website (http://www.auburnwa.gov). Page 1 of 61 * * CITY OF * AUBURNAGENDA BILL APPROVAL FORM WASHINGTON Agenda Subject: Meeting Date: 2026 Quarter 1 Financial Report (Thomas) (20 Minutes) June 29, 2026 Department: Attachments: Budget Impact: Finance 2026 Q1 Financial Update Presentation, Financial Report through March 2026 Administrative Recommendation: For discussion only. Background for Motion: Background Summary: The financial report summarizes the general state of Citywide financial affairs and highlights significant items or trends that the City Council should be aware of. The attachment provides year-to- date financial activity through March 31, 2026, based on financial data available as of May 11, 2026. Councilmember: Hanan Amer Staff: Jamie Thomas Page 2 of 61 City of Au B urn 1st Quarter 2026 Financia Report CITY COUNCIL STUDY SESSION TUNE 29 , 2026 General Fund Revenue Overview Summary Variance to Variance Collected 8% more Budget to 2025 revenue YTD compared 2025 YTD 2026 YTD 2026 YTD Favorable Favorable to budget and collected Revenue Actual Budget Actual (Unfavorable) % (Unfavorable) % 5% more than YTD last Property Tax $ 1,190,817 $ 1,151,100 $ 1,035,053 $ (116,047) $ (155,764) Sales Tax 5,778,793 6,183,800 6,617,004 433,204 838,211 year Utility Tax 4,190,016 3,888,315 4,554,676 666,361 364,660 •Underspent the YTD B&O Tax 3,413,483 2,633,830 3,438,725 804,895 25,242 p Other Tax 1,290,170 1,249,776 1,340,865 91,089 50,695 budgeted expenditures Licenses and Permits 657,664 690,400 1,074,296 383,896 416,632 by 6% and but spent 9% Intergovernmental 919,800 1,179,389 870,171 (309,218) (49,629) more than YTD last Charges for Services 2,991,733 2,704,427 2,600,720 (103,707) (391,013) year Other 1,761,927 1,843,720 1,752,493 (91,227) (9,434) Transfers In - 31,500 - (31,500) - '$5.3 million more has Total Revenue $ 22,194,403 $ 21,556,257 $ 23,284,003 $ 1,727,746 8% $ 1,089,600 5% Total Expenditures $ 26,166,558 $ 30,270,237 $ 28,572,778 $ 1,697,459 6% $ (2,406,220) -9% been spent in 2025 than revenue collected Page 4 of 61 Tax Revenue 2026 budgeted taxes account for $82.6 million, or 75% of the General Fund budget • Compared to 76.5% in 2025 — making the General Fund slightly less reliant on taxes than other funding sources Property Tax (31% of taxes) • $25.8 million 2026 budget • Collected 100% at year-end Retail Sales and Use Tax (27% of taxes) • $22.6 million 2026 budget • $433,000 (7%) over 2026 YTD budget • $838,000 (17%) over 2025 YTD actual Page 5 of 61 Tax Revenue Comparison of Retail Sales Tax Collections by Group through March 2026 2025 2026 Change from 202 Component Group YTD Actual YTD Actual • . - =TF- - Construction $ 611,356 $ 547,395 $ (63,961) (10.5) % Manufacturing 121,039 331,785 210,746 174.1 Transportation & Warehousing 84,567 95,360 10,793 12.8 % Wholesale Trade 380,173 387,506 7,333 1.9 % Automotive 1,243,828 1,849,776 605,948 48.7 % Retail Trade 1,754,392 1,736,542 (17,850) (1.0) % Services 1,476,200 1,563,920 87,720 5.9 % Miscellaneous 107,238 104,720 (2,518) (2.3) % YTD Total $ 5,778,793 $ 6,617,004 $ 838,211 14.5 % Page 6 of 61 Tax Revenue Utility Tax (20% of taxes) Utility Tax • $16.7 million 2026 budget C12026Budget f2026 YTD Actual -2025Actual • Water, Sewer, Storm,Solid Waste Utility Tax rate 9% $20 ($9.2 million of total budget) • Electric, Natural Gas, Cable, and Telephone Utility Tax rate 5% ($7.5 million of total budget) $15 • $666,000 (9%) over 2026 YTD budget • Collections from external water/sewer/storm tax payers s10 • $365,000 (9%) over 2025 YTD actual $4.6 M • Collections from external water/sewer/storm tax payers _.-- Page 7 of 61 Tax Revenue Business and Occupation Tax (B&O) (12% of total taxes) • $10.1 million 2026 budget • $3.4 million collected YTD: $2.3 million in gross receipts tax (68%) and $1.1 million in square foot tax (32%) • Includes Q4 2025 and some 2025 Annual Filings • $805,000 (31%) over 2026 YTD budget • $25,000 (1%) over 2025 YTD actual Other Taxes (6% of total taxes) • $5.2 million 2026 budget • Criminal justice sales tax, admissions tax, gambling tax, leasehold excise tax, franchise fees • $91,000 (4%) over 2026 YTD budget • Due to higher collection of gambling excise tax • $51,000 (7%) over 2025 YTD actual • Due to higher collection of gambling excise tax(timing of payments) Page 8 of 61 Licenses and Permits Accounts for 3% of the total General Fund Resources Business Licenses 02025Budget t2025 YTD Actual —2024Actual $3.0 million budgeted in 2026 5700 • $975,000 is building permit revenue 5600 $384,000 (56%) over 2026 YTD budget $50. iiii • Mostly attributed to one large permit fee paid a s400 in January for $400,000 0 IT 5300 $189.9 K $417,000 (63%) over 2025 YTD actual $200 • Mostly attributed to one large permit fee paid slop - in January for $400,000 so — Jan Feb Mar Apr May Jun Jul Aug Sep Oct Mnv DPIIIIPIF Page 9 of 61 Intergovernmental Revenues include: Federal/State/Interlocal Grants, Muckleshoot Indian Tribe (MIT) Compact, State Shared Revenue • State Shared Revenue: Streamlined Sales Tax, Motor Vehicle Excise Tax (MVET), Marijuana/Liquor excise taxes, Criminal Justice Sales Tax $309,000 (26%) under 2026 YTD budget • Lower collection of grants and less liquor excise tax collected than budgeted $50,000 (5%) under 2025 YTD collections • Lower collection of grants and reduced state shared revenue contributions (this sunsets entirely in June 2026) Page 10 of 61 Charges for Services General Government - $1,000 above budget (.1%) o Increased passport fees due to the Real ID program Public Safety - $57,000 below budget (18%) o Timing of collecting reimbursements for extra duty servicesa nd Development Services - $67,000 below budget (16%) • Overall decreased activity and significantly training 2025 YTD collections Culture and Recreation - $20,000 above budget (3%) • Due to green fees — although higher than budgeted, still underperforming prior YTD due to the golf course closure in mid-December — mid-February Page 11 of 61 Other Fines and Penalties • $516,000 under 2026 YTD budget (37%) Fewer traffic infraction collections compared to budget Interest and Investment Earnings • $327,000 over 2026 YTD budget (233%) • $149,000 under 2025 YTD actual (24%) Page 12 of 61 General Fund Expenditures byDepartment 2025 YTD 2026 YTD 2026 YTD Budget vs Actual Department Actual Budget Actual $ % Council, Mayor,Admin 717,580 850,852 642,527 208,325 24% Office of Equity 99,712 279,447 93,761 185,686 66% Municipal Court 360,702 746,364 898,208 (151,844) -20% Community Development 1,732,199 1,962,082 1,843,159 118,923 6% Human Services 498,518 649,259 331,935 317,324 49% Public Works 1,581,097 2,139,980 1,463,841 676,139 32% Streets (M&O) 1,373,749 1,510,222 1,516,050 (5,828) 0% Parks,Art, and Recreation 4,140,726 4,544,138 4,375,204 168,934 4% Police 9,960,347 11,732,595 10,935,130 797,465 7% SCORE 1,463,808 1,762,500 1,709,844 52,656 3% Internal Services (HR, Finance, Legal, Nondepartment) 4,238,121 4,092,800 4,763,119 (670,319) -16% Total $ 26,166,559 $ 30,270,239 $ 28,572,778 $ 1,697,461 6% Page 13 of 61 ARPA Update 2026 Lifetime Spend Title Budget Q1 Spend (includes this quarter) Remaining Completed Projects 6,851,617 - 6,851,617 - Human Services Grants Includes Ad mi n 1,000,000 - 445,882 554,118 Theater 389,700 693 693 389,007 2023 Local Street Preservation 148,167 - 58,793 89,374 Translation Services 25,000 - 1,685 23,315 Auburn Way South Roundabout 150,000 - 53,924 96,076 Emergency Housing Voucher Program 2,000,000 28,062 896,934 1,103,066 0E1 Dashboard(Inclusive Auburn) 130,000 - 92,805 37,195 Downtown Infrastructure Improvements includes Theater 1,819,409 24,671 1,580,148 239,261 Community Viole nce Intervention Programs(Drone,SPIDRTech) 236,248 - 204,436 31,812 Other Projects(not started) 2,001,091 - - 2,001,090 Total: 14,751,231 53,426 10,186,918 4,564,313 Page 14 of 61 Non -General Fund Highlights Capital Real Estate Excise Tax (REET) Total 2026 Budget: $1.8 million Real Estate Excise Tax GO2026Budget t2026YTDActual —2025 Actual YTD Collections: $807,000 $4 - $425,000 over 2026 YTD budget $73,000 over than 2025 YTD actual o ss 52 $0-8 M 51 — 50 Jan Feb Kl,.• Page 15 of 61 Questions Page 16 of 61 jinni AUBURN Quarterly Financial Report Through March 2026 "^ " This report provides an overview of the City's overall cash-basis financial position for the fiscal period ending March 31, 2026, reflecting data available as of May 11, 2026. References to budget, actual and prior year amounts reflect year-to-date numbers, unless otherwise stated. Year-to-date budget expectations are generally based on the two prior years of data. General Fund Overview Throughout 2025, the City continued to see growth in many aspects of City operations and infrastructure. However, the City experienced a significant natural disaster at the end of 2025 when an atmospheric river caused widespread flooding. In response, the President approved a major disaster declaration for Washington state on April 7, 2026. Many City facilities and operations were affected, and these impacts — referred to throughout this report as the "flooding event" — will be referenced throughout the report. Although the City anticipates cost recovery for most flood-related damages, the favorable variances seen in prior years are expected to diminish in 2026. Revenue collections this year are also expected to be influenced by the FIFA World Cup matches being hosted in Washington, though the financial impact of this on the City remains uncertain. With the adoption of Ordinance #7000 in November 2025, the 2026 annual budget consists of $110.1 million in revenues and $116.4 million in expenditures, resulting in a planned decrease in General Fund balance of$6.3 million. Through the first quarter of 2026, the General Fund outperformed revenue expectations by $1.7 million (8%). Year-to-date revenue collections are $1.1 million (5%) higher than the same period in 2025.A major contributor to this favorable variance is Business and Occupation (B&O)tax revenue. The City collected $3.4 million in B&O taxes, including payments made in arrears. Despite a strong performance thus far, the City anticipates B&O revenues will decline from a peak of$13.4 million in 2025 as payments related to prior periods decrease. Sales tax collections also contributed to the positive revenue performance. Year-to-date sales tax revenue totals $6.6 million, exceeding the same period in 2025 by $838,000. These revenue gains support the City's continued growth and offset rising costs. General Fund expenditures increased $2.4 million (9%) compared to the same period last year, driven by planned increases in overhead costs, professional services for citywide projects and improvements, and insurance premiums. Overall, General Fund revenues collected through the first quarter of 2026 totaled $23.3 million, exceeding the year-to-date budget of $21.6 million by $1.7 million, or 8% above budget expectations. Expenditures totaled $28.6 million compared to the year-to-date budget of $30.3 million, resulting in a $1.7 million or 6% underspend. Page 17 of 61 Quarterly Financial Report Through March 2026 2 GENERAL FUND REVENUES VS. EXPENDITURES THROUGH MARCH 2026 YTD Actuals S23.3M Revenues YTD Budget$21.6 M YTD Actuals$28.6M Expenditures YTD Budget$30.3 M ti, ti1G $20 $30 $MILLIONS Revenue: The following factors had the most significant impact on the budget vs. actual revenue collected: • Retail Sales and Use Tax: Collections totaled $6.6 million, exceeding the year-to-date budget by $933,000. Much of this favorable variance is attributable to the automotive sector, where reporting requirements have changed for some companies. The City anticipates the trend of higher collections will continue throughout the end of the year. [pages 7-9] • Business and Occupation Tax: Revenues collected throughout Q1-2026 totaled $3.4 million, exceeding the year-to-date budget by$805,000. Some of this favorable variance is due to the collection of tax obligations incurred in prior years, which is not expected to continue at the same level in the future. [pages 9-10] • Fines and Penalties: Year-to-date revenues totaled $891,000 and are unfavorable to budget projections by $516,000 (38%). However, partially mitigating the unfavorable variance is the collection of fines and penalties assessed on backdated B&O taxes, totaling $321,000, or 36% of total collections year-to-date. [pages 19-20] • Building Permits: Revenues totaled $602,000, significantly exceeding the year-to-date budget of$220,000. While permit volume is higher than the same period last year, the majority of the favorable variance comes from a single high-value project within City limits. [pages 14-15] • Interest and Investment Earnings: Collections totaled $468,000, exceeding budget expectations by$328,000. Several investments matured during the quarter, and the City has structured its portfolio to provide quarterly maturities which support steady cash flow. Based on current market indicators, the City anticipates exceeding budget expectations by the end of the year. [pages 20-21] Page 18 of 61 Quarterly Financial Report Through March 2026 3 Expenditures: Most City departments operated within year-to-date expectations throughout the first quarter of 2026, with some variances due to the timing of professional services payments. Overall, expenditures were $1.7 million below the year-to-date budget. Contributing to the favorable variance was a savings in salaries and benefits of roughly $456,000; as of the compilation of this report, the City had 32 vacant regular full-time positions. Additionally, services and charges were approximately $110,000 below budget expectations. This is partially due to the timing of spending on ARPA-related projects in progress within the City. Enterprise Funds Overview The City's enterprise funds account for operations in which revenues are primarily provided by user fees, charges, or contracts for services. While the City's investments have seen a high rate of return in the past several years, the maturation of certain investments has slowed year-over-year growth in interest earnings. Through Q1-2026, interest earnings for the City's enterprise funds were $776,000, 3% lower than interest earnings through Q1-2025. The Water Utility Fund ended Q1-2026 with operating income of $1.3 million, an increase of $173,000 compared to the same period last year. This variance is due primarily to increased revenues from charges for services (+$554,000), offset by a decrease of $127,000 in interest earnings. Expenditures also increased by $263,000 compared to Q1-2025, driven by increased personnel costs (+$121,000), supplies (+$28,000) and miscellaneous service charges (+$132,000). Overall, the fund's operating income had an $845,000 favorable variance to year-to- date budget expectations, driven by strong performance in charges for service and interest and investment earnings on the revenue side and lower-than-expected insurance expense. [pages 24- 25] The Sewer Utility Fund ended Q1-2026 with operating income of$1.3 million,which was$105,000 higher than Q1-2025. While operating revenues increased $488,000 compared to the same period last year, operating expenditures also increased (+$384,000). The increase in operating expenditures was driven primarily by increased service charges (+$404,000), a portion of which is related to ongoing mitigation efforts associated with the flooding event. In total, operating income for this fund was $926,000 higher than budget projections, due to favorable variances in both operating revenues (+$911,000) and operating expenses (-$16,000). [page 25] The Stormwater Utility Fund ended Q1-2026 with operating income of $898,000, a moderate increase of $64,000 (8%) compared to the same period last year. Operating revenues increased $140,000 compared to the prior year, mainly due to an increase in charges for storm service (+$125,000)and interest and investment earnings (+$15,000). Operating expenditures for this fund also increased compared to the prior year (+$76,000) due mainly to increased service charges (+$100,000), though partially offset by lower personnel costs (-$22,000). This fund outperformed operating income budget projections by $321,000 due to favorable variances in both operating revenues (+$180,000) and expenditures (-$141,000). [pages 25-26] The Solid Waste Utility Fund ended Q1-2026 with operating income of $1.8 million, a $110,000 increase compared to the prior year. This variance is due primarily to a timing difference between revenues collected for solid waste service and payments made to the City's solid waste provider. Charges for service revenues saw a$494,000 increase from the prior year, reflecting higher service rates adopted for 2026. Operating expenditures also increased (+$402,000), consistent with the correlation between rate revenues and charges from the City's solid waste provider. Compared to budget expectations, operating income was$173,000 higher than anticipated, driven by a favorable budget variance in revenues (+$254,000) and offset by higher-than-expected expenditures (+$81,000). [page 26] Page 19 of 61 Quarterly Financial Report Through March 2026 4 Internal Service Funds Overview Internal service funds provide services to other City departments and include functions such as Insurance, Worker's Compensation, Facilities, Innovation & Technology, and Equipment Rental. The City's Insurance Fund incurred an annual insurance charge approximately $1.8 million lower than originally anticipated. This resulted in decreased interfund allocation charges for all funds, including the Enterprise Funds noted above. The Facilities Fund saw a significant increase in professional services charges over 2025 (+$643,000) as a direct result of ongoing flood mitigation efforts. These increased costs resulted in a negative working capital balance of$302,000 in Q1-2026. Facilities expenses related to the flood event were reimbursed from the Cumulative Reserve Fund in April 2026; the City will continue to monitor these efforts. No other significant variances were reported in these funds during Q1-2026. [page 26] Page 20 of 61 Quarterly Financial Report Through March 2026 5 General Fund Details The following chart is a detailed breakdown of the General Fund's different sources of revenue and expenditures, broken down by department: General Fund 2026 2026 YTD Budget vs.Actual 2025 2026 YTD Actual vs.2025 Actual Summary of Sources and Uses Annual YTD YTD Favorable(Unfavorable) YTD Favorable(Unfavorable) Budget Budget Actual Amount Percentage Actual Amount Percentage Operating Revenues Property Tax $ 25,815,300 $ 1,151,100 $ 1,035,053 $ (116,047) (10.1) % $ 1,190,817 $ (155,763) (131)% Retail Sales Tax 22,808,000 5,683,800 6,617,004 933,204 16 4 % 5,778,793 838,211 14 5% Public Safety Sales Tax 2,000,000 500,000 - (500,000) (100.0) % - - % Affordable Housing Sales Tax Credit 149,500 47,500 45,208 (2,292) (4.8) % 47,903 (2,695) (5 6) % Sales Tax-Fierce County Parks 132,400 32,400 35,839 3,439 10 6 % 33,546 2,293 6 8% Criminal Justice Sales Tax 3,098,200 773,000 834,176 61,176 7 9 % 784,634 49,542 6 3 % Brokered Natural Gas Tax 317,100 116,700 73,493 (43,207) (37.0) % 78,519 (5,026) (6 4)% City Utilities Tax 7,629,100 1,767,100 1,856,836 89,736 51 % 1,705,971 150,865 88 % Business&Occupation Tax 10,091,600 2,633,830 3,438,725 804,895 30.6 % 3,413,483 25,243 0.7% Admissions Tax 260,200 83,200 126,227 43,027 51.7 % 129,758 (3,530) (2.7) % Bectric Tax 4,924,800 1,131,000 1,361,030 230,030 20.3 % 1,179,218 181,812 15.4 Natural Gas Tax 1,367,000 339,600 359,080 19,480 5.7 % 375,249 (16,169) (4.3) % Cable Franchise Fee 905,800 226,450 156,040 (70,410) (31.1) % 177,098 (21,058) (11.9) Cable Utility Tax 894,400 223,600 166,060 (57,540) (25.7) % 186,009 (19,949) (10.7) % Cable Franchise Fee-Capital 52,200 13,050 7,640 (5,410) (41.5) % 9,057 (1,417) (15 6)% Telephone Tax 581,990 195,520 336,410 140,890 72 1 % 246,283 90,127 36 6 % Solid Waste Tax(external) 1,017,900 114,795 401,767 286,972 250 0 % 418,767 (17,000) (4 1)% Leasehold Excise Tax 297,400 16,200 21,309 5,109 31 5 % 15,438 5,871 38 0 % Gambling Excise Tax 293,200 57,976 114,424 56,448 97 4 % 92,736 21,688 23 4% Taxes sub-total $ 82,636,090 $ 15,106,821 $ 16,986,323 $ 1,879,503 12.4 % $ 15,863,279 $ 1,123,044 7.1 % Business License Fees $ 588,000 $ 151,000 $ 200,202 $ 49,202 32 6 % $ 189,859 $ 10,343 5 4 % Building Permits 974,000 219,700 602,324 382,624 174 2 % 223,266 379,058 169 8% Other Licenses&Permits 1,449,300 319,700 271,770 (47,930) (15.0) % 244,539 27,232 11.1 % Intergovernmental(Grants,etc.) 6,495,885 1,179,389 870,171 (309,218) (26.2) % 919,800 (49,629) (5.4)% Charges for Services: - GeneralGovernmentServices 5,253,717 1,313,429 1,314,431 1,001 0.1 % 1,280,053 34,377 2.7% Public Safety 1,255,571 313,893 256,428 (57,465) (18.3) % 214,183 42,245 19.7 % Development Services Fees 1,273,900 417,600 350,326 (67,274) (16.1) % 716,004 (365,678) (51.1)% Culture and Recreation 3,026,300 659,505 679,535 20,030 3 0 % 781,493 (101,957) (13 0) % Fines and Penalties 4,816,697 1,407,272 891,232 (516,039) (36.7) % 779,743 111,490 14 3% Fees/Charges/Fines sub-total $ 25,133,370 $ 5,981,488 $ 5,436,420 $ (545,068) (9.1) % $ 5,348,939 $ 87,481 1.6% Interest and Investment Earnings $ 790,900 $ 140,167 $ 467,693 $ 327,526 233 7 % $ 617,105 $ (149,412) (24 2) % Rents and Leases 1,190,180 255,600 256,282 682 03 % 302,492 (46,211) (153)% Contributions and Donations 16,000 2,109 5,457 3,348 158 8 % 5,167 291 5 6 % Other Miscellaneous 208,000 32,322 72,587 40,265 124 6 % 37,995 34,592 91 0% Transfers In 126,000 31,500 - (31,500) (100.0) % - - % Insurance Recoveries-Capital&Operating 25,000 6,250 59,242 52,992 847 9 % 19,425 39,817 205 0% Other Revenues sub-total $ 2,356,080 $ 467,948 $ 861,261 $ 393,312 84.1 % $ 982,184 $ (120,923) (12.3) % otal Operating Revenues 110,125,540 $ 21,556,257 $ 23,284,004 $ 1,727,747 8.0 % $ 22,194,402 $ 1,089,602 4.9% Operating Expenditures :ouncil&Mayor $ 1,915,503 $ 557,817 $ 423,638 $ 134,179 24 1 % $ 502,612 $ (78,974) (15 7)% Administration 1,067,010 293,035 218,889 74,146 253 % 214,968 3,921 1 8% iuman Resources i 2,857,163 753,344 647,524 105,820 14 0 % 694,663 (47,139) (6 8)% King County Court&Probation 4,809,090 681,823 898,208 (216,386) (31.7) % 360,702 537,506 149 0% rinarlIW 5,856,264 _1,543,099 i1,537,992 5,107 0.3 % 1,437,566 100,426 _ 0% City Attorney 4,969,972 1,438,010 1,537,964 (99,954) (7.0) % 1,138,641 399,323 35.1 % vlunicipal Coui. 258,163 _64,541 -_- 64,541 100.0 % - - _% Community Development 7,564,295 1,962,082 1,843,159 118,923 6.1 % 1,732,199 110,960 6.4% lumen Ser.rces .11r 2,568,086 49,259 ir1,935 317,324 48.9 % 1495,518 (166,583) (3n)% Office of Equity 1,045,388 279,447 93,761 185,686 66.4 % 99,712 (5,951) (6.0)% lad-SCORE 7,050,000 -1,762,500 -1,709,844 52,656 3 0 % 1,463,808 246,036 16 8% Police 41,831,608 11,732,595 10,935,130 797,465 68 % 9,960,347 974,783 98% 'ublic Works 6,449,916 2,139,980 1,463,841 676,139 31 6 % 1,581,097 (117,257) (74)% Parks,Arts&Recreation 17,569,666 4,544,138 4,375,204 168,934 3 7 % 4,140,726 234,478 5 7% itreets 5,309,285 1,510,222 1,516,050 (5,828) (0.4) % 1,373,749 142,301 104% Non-Departmental 5,309,576 358,347 1,039,639 (681,293) (190.1) % 967,251 72,389 75% otal Operating Expenditures $116,430,985 $ 30,270,237 $ 28,572,778 $ 1,697,459 5.6 % $ 26,166,558 $ 2,406,220 9.2 % Page 21 of 61 Quarterly Financial Report Through March 2026 6 General Fund Revenues Budget Vs Actual Retail Sales Tax .6.6M B&O Tax $3.4M External Utilities Tax . . 'I City Utilities Tax -"?` Intergovernmental General Gov't Services Fines&Penalties Other Taxes Culture&Recreation Licenses and Permits Public Safety Sales TaxIII Development Services Fees 50k Public Safety 56k Rents&Leases 56k Interest&Investments 68k Other Miscellaneous I S137k Transfers-in I $0 0 5M 10M 15M 20M 25M 30M ■Annual Budget ■YTD Budget ■YTD Actual Page 22 of 61 Quarterly Financial Report Through March 2026 7 General Fund Revenue Tax revenues, including property, sales/use, utility, business & occupation, gambling, and admissions taxes provide 73% of all resources supporting general governmental activities. Licenses, charges for services, intergovernmental revenue (grants, state shared revenue, etc.)and fines contribute a further 23% of total revenue to the General Fund. The remaining 4% is comprised of a combination of one-time resources. The following section provides additional information on the most significant resource streams. Property Tax collections through the first quarter totaled roughly $1.0 million, approximately $116,000 or -10% below budget projections. As depicted in the graphic below, the majority of property taxes are collected during the months of April and October, coinciding with the due dates for county property tax billings. Property Taxes GI2026Budget —0-2026YTDActual —2025Actual $30 $25 $20 z 51s $io $5 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Retail Sales Tax collections throughout Q1-2026 totaled $6.6 million, representing taxes remitted to the City of Auburn on sales occurring from November 2025 through January 2026. Collections increased by $838,000 (15%) compared to Q1-2025 and exceeded budget expectations by $933,200. This year-over-year growth of 15% significantly exceeds the most recent King County economic forecast' of 6.5% annual growth over 2025 collections. If current trends continue, retail sales tax collections are expected to surpass both budgeted and prior-year totals by year-end. 1 King County, WA. 2025. The Office of Economic and Financial Analysis. httos://kinacountv.aov/en/leaacv/independent/forecasting. Page 23 of 61 Quarterly Financial Report Through March 2026 8 Retail Sales & Use Tax 11=12026Budget —2025 Actual —111—2026 YTD Actual $25 $20 $15 0 $10 $6.6 M $5 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Retail Sales& Use Tax $25 $23.0 $22.9 $23.0 $22.7 $21-6 $20 $15 $10 $6.6 • $5 so 2021 2022 2023 2024 2025 2026 YID Industry performance was mixed. Strong gains were reported in automotive (+$605,948), manufacturing (+$210,746), and services (+$87,720) categories, with smaller gains in transportation and warehousing (+$10,793), and wholesale trade (+$7,333). These increases were partially offset by declines in the construction (-$63,961), retail trade (-$17,850), and miscellaneous (-$2,518) categories. The chart below illustrates the year-over-year changes in retail sales tax collections by industry through the first quarter. Page 24 of 61 Quarterly Financial Report Through March 2026 9 Through March 2026 2025 2026 Change from 2025 Component Group YTD Actual YTD Actual Amount Percentage Construction $ 611,356 $ 547,395 $ (63,961) (10.5) % Manufacturing 121,039 331,785 210,746 174.1 % Transportation& Warehousing 84,567 95,360 10,793 12.8 % Wholesale Trade 380,173 387,506 7,333 1.9 % Automotive 1,243,828 1,849,776 605,948 48.7 % Retail Trade 1,754,392 1,736,542 (17,850) (1.0) % Services 1,476,200 1,563,920 87,720 5.9 % Miscellaneous 107,238 104,720 (2,518) (2.3) % YTD Total $ 5,778,793 $ 6,617,004 $ 838,211 14.5 % Business & Occupation (B&O) Taxes are collected from businesses based on either the value of gross receipts or square footage of occupied warehousing space, subject to certain constraints. While the City receives collections throughout the year, B&O taxes are primarily remitted on a quarterly basis. Through reconciliation with the State's Business Licensing System, the City has identified tax amounts due from prior periods. This effort has significantly increased year-to-date performance and is expected to push total annual collections above budget projections. Collections through the first quarter totaled $3.4 million versus a year-to-date budget of $2.6 million. Of the $3.4 million collected, roughly $1.2 million (36%) consists of back taxes. By comparison, an average of 55% of collections in 2025 consisted of back payments. Current 2026 collections outpace 2025 collections throughout the same period by a slim margin of$25,000 (0.7%); while the proportion of back taxes (and the occasional large payments associated with them) has slowed, overall revenue remains consistent as more businesses are added through the discovery process. Compared to prior year-to-date totals, the City collected roughly $234,000 (11%) more in gross- receipts-based revenue, while square-footage-based collections decreased by $209,000 (16%). Business&Occupation Tax Through March 2026 2026 Favorable(Unfavorable) 2025 2026 YTD Actual vs.2025 Actual Revenue Annual Budget YTD Budget YTD Actual Amount Percentage YTD A -I Ai-•unt Percentage Gross Receipts $ 7,188,400 $ 1,876,117 $ 2,349,599 $ 473,482 252% $ 2,115,403 $ 234,195 11 1% 'Square Footage 2,903,200 757,713 1,089,127 331,414 43 7°°J 1,298,079 (208,953) -16 1 Total $ 10,091,600 $ 2,633,830 $ 3,438,725 $ 804,895 30 6°° $ 3,413,483 $ 25,243 0 7% Page 25 of 61 Quarterly Financial Report Through March 2026 10 Business & Occupation Tax 02026Budget —2025Actual f2026YTDActual $16 $14 $12 O $10 $8 $6 $4 $3.4 M $2 — $ — Jan Feb Mar Apr May Jun Jul ug Sep Oct Nov Dec Utility Taxes consist of an 11.5% tax on the gross revenues of water, sewer, storm drainage and solid waste utilities and a 6.0% tax on electric, natural gas, and telephone utilities operating within the City. Of those utilities taxed at 11.5%, the General Fund receives 9% while the remaining 2.5% is dedicated to funding City streets projects. For utilities taxed 6%, 5% is allocated to the General Fund and 1% to City streets projects. Overall, utility tax revenues increased by$365,000 (9%)from Q1-2025 and are $666,000 favorable to budget. Roughly 71% of utility tax receipts are City interfund utility taxes and electric utility taxes. These two revenue sources accounted for $3.2 million of the collected $4.6 million throughout the first quarter of 2026. The largest portion of the overall favorable budget variance occurs within the external utility taxes (+$287,000) category due to an increase in solid waste hauler usage, as well as rate adjustments effective in 2026. The remaining favorable variances are due to the collection of backdated taxes. While collections of back taxes are expected to continue, the City anticipates that large increases from newly-identified businesses will diminish over time. Electric utility taxes exceed budget expectations by$230,000 and surpassed prior-year collections by $182,000, largely due to an approximately 6% rate increase at the beginning of the year. With this rate increase, the City anticipates these revenues will continue the favorable variance throughout the year. Telephone utility taxes increased by $90,000 from Q1-2025, primarily as the result of the timing of collections related to prior year activity. Additionally, the City collected a large sum from one provider that became current in remitted filings. The table and charts below summarize utility tax revenues and compare actual revenues to budget. These figures represent only the General Fund portion and exclude amounts dedicated to City streets projects. Page 26 of 61 Quarterly Financial Report Through March 2026 11 Utility Tax by Type(General Fund Portion) Through March 2026 2026 Favorable(Unfavorable) 2025 2026 YTD Actual vs.2025 Actual Revenue Annual Budget YTD Budget YTD Actual Amount Percentage I YTD Actual Amount 1 Percentage City Interfund Utility Taxes $ 7,629,100 $ 1,767,100 $ 1,856,836 $ 89,736 51% $ 1,705,971 $ 150,865 88% Electric 4,924,800 1,131,000 1,361,030 I 230,030 20 3°0 1,179,218 _ 181,812 _ 154% Natural Gas 1,367,000 339,600 359,080 I 19,480 5 7%J 375,249 (16,169) -4 /01 Telephone 581,990 195,520 336,410 1 140,890 72.1°°J 246,283 90,127 36.6%I External Utility Taxes 1,017,900 114,795 401,767 1 286,972 250 0% 418,767 (17,000) -4 1%I Brokered Natural Gas 317,100 116,700 73,493 1 (43,207) -37 0% 78,519 (5,026) 6 4% Cable 894,400 223,600 166,060 (57,540) -25.7% 186,009 (19,949) -10.7% 1 Total $ 16,732,290 $ 3,888,315 $ 4,554,677 $ 666,362 171°, $ 4,190,016 $ 364,660 8 7% 1 Utility Tax ©2026Budget t2026 YTD Actual -2025Actual $20 $15 z z 0 $10 $4.6 M $5 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Utility Tax Revenues $20 $15.4 $15.2 $15 $13.2 $12.8 t = ' 0 0 $10 $4.6 $5 • $0 2021 2022 2023 2024 2025 2026 YTD Page 27 of 61 Quarterly Financial Report Through March 2026 12 Note: The significant jump from 2022 ($12.8 million) to 2023 ($15.8 million) is largely due to higher service revenue following a rate increase effective in 2023, combined with higher service usage and the collection of B&O taxes on businesses that provide utility services. Similarly, 2024 ($15.2 million) to 2025 ($17.6 million) is largely due to increases in solid waste and electricity rates. An Admission Tax of 5% is placed on charges for general admission, season tickets, cover charges, and similar activities, and is generally collected on a quarterly basis. Admission tax revenues of approximately $126,000 through March 2026 were a slight decrease (3%) from Q1- 2025. Although this tax is historically volatile due to external factors such as economic conditions and weather, revenues are favorable to budget by $43,000 through the first quarter. Admission Tax 2026 Budget 2026 YTD Actual —202 s00 $700 $600 $S00 $400 $300 $200 $126,2 K $100 n Feb Mar Apr May Jui Aug Sep Oct Nc:• D__ Gambling Tax applies to all card games, punch board games, pull tabs, bingo games, raffles and amusement games played within City limits. The majority of gambling tax revenues are generated from card games (78%) and punch boards and pull tabs (12%). Collections of $114,000 through the first quarter are $22,000 higher than 2025 year-to-date totals, and reflect a $56,000, favorable variance to budget. The primary drivers of the favorable variance are higher collections from card games (+$57,000) and punch boards and pull tabs (+$8,000). Amusement games are $9,100 less than year-to-date budget assumptions resulting in a lower overall favorable variance. Gambling tax revenues have historically exhibited high volatility both month-over-month and year- over-year. Excluding 2021, when COVID-19 restrictions materially disrupted activity, first-quarter revenues in recent years have averaged about$60,000, with a high of$104,000 in 2023 and a low of $29,000 in 2024. The City will continue to monitor these taxes closely — along with sales tax — given their value as an indicator of consumer discretionary spending. Page 28 of 61 Quarterly Financial Report Through March 2026 13 Gambling Tax 02026Budget —0-2026YTOActual —2025 Actual $600 $500 $400 z $300 O $200 $114 4 K $100 SO Jar Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Licenses and Permits include business licenses, building permits, plumbing, electric and other licenses and permit fees. Building permit fees and other licenses—such as excavation, street/curb, and plumbing permits — typically comprise most of the budgeted revenue in this category, at approximately 32% and 48%, respectively. The annual Business License renewal fee for each business located within the City is $107, with the renewal cycle based on the anniversary of the business's initial license issuance. Year-to-date collections totaled $200,000 in 2026, compared to $190,000 in 2025, representing a 5% increase. Historically, business license collections have been a highly volatile, and therefore budgeted conservatively. However, through business discovery efforts and enhanced use of the State's Business Licensing System as part of the B&O tax reconciliation process, these revenues have become more consistent. Comparing to budget projections, business license revenues are favorable by$49,000 (33%). The City generally experiences the highest collection levels during the first and fourth quarters of the year due to the renewal cycle. Page 29 of 61 Quarterly Financial Report Through March 2026 14 Business Licenses 02026Budget f2026 YTD Actual -2025Actual $800 $600 $400 O $200.2 K $200 50 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Business License Revenues $aoo $718 $640 $583 $600 s $400 $32 $424 $200 $200 S $0 2021 2022 2023 202a 2025 2026 YTD Building Permit revenues collected through March 2026 totaled $602,000, approximately $379,000 higher than 2025 collections year-to-date and favorable to budget by$383,000 (+174%). A major contributor to this favorable variance is the increased valuation of construction permits on warehouses, along with a single high-value project within City limits. Additionally, the number of permits submitted throughout the first quarter increased by 17% over the same period last year, indicating elevated construction activity and permitting workload throughout the City. Page 30 of 61 Quarterly Financial Report Through March 2026 15 Building Permits I=2026 Budget f 2026 YTD Actual -2025 Actual $1.2 $1.0 $0.8 $0.6 M $0.6 $0.4 $0.2 $0.0 AIL Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec i Building Permits S2.5 $2.0 o $1.5 $1.3 2 $1.0 $0.9 $1.0 $1.0 $0.6 $0.5 $0.8 • $0.0 2021 2022 2023 2024 2025 2026 YTD Page 31 of 61 Quarterly Financial Report Through March 2026 16 Intergovernmental revenues include grants and stimulus monies (direct and indirect federal, state, and local), revenue from the Muckleshoot Indian Tribe (MIT) compact, and various state shared revenues. Collections throughout Q1-2026 totaled $870,000 and were $309,000 unfavorable to budget expectations. Much of this unfavorable variance is due to the timing of state and federal grant reimbursements. These grants are generally collected on a cost-reimbursement basis, and several projects have experienced delays, thus postponing reimbursements. The City anticipates that the identified projects will be completed and reimbursed in 2026. Furthermore, the City's proposed 2026 MIT compact request is still pending approval; the City anticipates approval and collections are expected to begin in Q2-2026. Intergovernmental Revenues(Grants,Entitlements&Services) .=a. Through March 2026 2026 Favorable(Unfavorable) 2025 2026 YTD Actual vs.2025 Actual Revenue Annual Budget YTD Budget YTD Actual Amount Percentage YTD Actual Amount Percentage Federal Grants $ 917,333 $ 229,333 $ 5,783 $ (223,550) -97 5% $ 26,417 $ (20,634) -78.1% State Grants 77,000 3,100 4,275 1,175 37.9% 39,208 (34,933) -89.1% Interlocal Grants 418,352 84,400 - (84,400) -100.0% 18,571 (18,571) -100.0% Muckleshoot Casino Services 1,400,000 - - - - - State Shared Revenues: Streamlined Sales Tax 368,700 92,175 102,416 10,241 11 1% 128,020 (25,604) -20.0% Motor Vehicle Fuel Tax 1,208,900 279,200 284,375 5,175 1.9% 226,600 57,776 25.5% Criminal Justice-High Crime 294,500 73,625 79,341 5,716 7.8% 75,156 4,185 5.6% Criminal Justice-Population 35,900 8,700 9,317 617 7 1% 8,803 514 5.8% Criminal Justice-Special Prog. 125,600 30,400 32,547 2,147 71% 30,868 1,679 5.4% Marijuana Excise Tax 201,300 50,325 47,911 (2,414) -4 8% 51,991 (4,080) -7.8% State DUI 7,800 1,950 2,616 666 34.2% 1,913 703 36.8% Fire Insurance Tax 123,400 - - - -Liquor Excise 657,300 161,231 135,191 (26,040) -162% 144,076 (8,885) -6.2% Liquor Profit 659,800 164,950 166,398 1,448 0 9% 168,177 (1,779) -1.1% Subtotal State Shared 3,683,200 862,556 860,113 (2,443) -03% 835,604 24,509 2.9% YTD Total $ 6,495,885 $ 1,179,389 $ 870,171 $ (309,218) -26.2% $ 919,800 $ (49,629) -5.4% Intergovernmental Revenues (Grants, Entitlements& Services) $12 $10 $8.0 in $8 $6.9 $6.8 $6 $4 $2 $0.9 • $0 2021 2022 2023 2024 2025 2026 YTD Page 32 of 61 Quarterly Financial Report Through March 2026 17 Charges for Services consist of general governmental service charges, public safety charges, development service fees, and culture and recreation fees. Revenues collected through March totaled $2.6 million and were $104,000 (4%) lower than year-to-date expectations. This shortfall was mainly due to lower-than-anticipated revenues in public safety and development services. Charges for Services by Type Through March 2026 2026 Favorable(Unfavorable) 2025 2026 YTD Actual vs.2025 Actual Revenue Annual Budget YTD Budget YTD Actual Amount Percentage YTD Actual Amount Percentage General Government $ 5,253,717 $ 1,313,429 $ 1,314,431 $ 1,001 0.1% $ 1,280,053 $ 34,377 2.7% (Public Safety 1,255,571 313,893 256,428 (57,465) -18.3%1 214,183 42,245 19.7%I (Development Services 1,273,900 417,600 350,326 (67,274) -16.1.1 716,004 (365,678) -51.1%I (Culture&Recreation 3,026,300 659,505 679,535 20,030 3.0%' 781,493 (101,957) -13.0%I Total $ 10,809,488 $ 2,704,427 $ 2,600,719 $ (103,708) $ 2,991,732 $ (391,013) -13.1% The General Government revenue category primarily includes the interfund assessment for support departments (Finance, Human Resources and Legal). Operating costs for these departments are charged to the respective General Fund home departments, and the portion of those costs that provide citywide benefit are recouped from other funds through interfund charges. General government revenues also include fees for passport services, quarterly administrative fees received by the City in return for acting as the fiscal agent for South King Housing and Homelessness Partners (SKHHP), and crime lab analysis fees. Public Safety revenues mainly consist of reimbursements for law enforcement services, which are extra-duty security services where officers are contracted by external agencies. This category also includes reimbursements from the Muckleshoot Indian Tribe (MIT) for a full-time dedicated police officer and associated expenditures, as well as payments from the Auburn School District for services rendered. Public safety revenues through the first quarter of 2026 totaled $256,000, an increase of$42,000 from Q1-2025. This increase is primarily due to the timing of collections for law enforcement services rendered last year. However, DUI fees received by the City have decreased $3,000 compared to last year. In total, public safety revenues hold an unfavorable variance to year- to-date budget of$57,000. Development Services fee collections consist primarily of collections generated from plan check fees, facility extension charges, and zoning and subdivision fees. Through Q1-2026, these revenues totaled $350,000, which is $67,000 lower than budget expectations and $366,000 lower than prior year-to-date totals. Unfavorable variances to year-to-date budget occurred in plan check fees (-$47,000), other planning and development fees (-$196,000), and zoning and subdivision fees (-$25,000). The large variance within "other planning and development fees" is the result of the timing of collections on a single project; the City expects to collect the full amount budgeted by the end of the year. These variances were offset by a favorable variance in FAC charges (+$8,000). Page 33 of 61 Quarterly Financial Report Through March 2026 18 Development Service Fees $2.5 $2,3 $2.0 $1.6 o $1.5 $1.3 $1.1 $1 ,Y$1.0 $0.5 $0.4 • $0.0 2021 2022 2023 2024 2025 2026 YT❑ Most Culture and Recreation revenues are derived from green fees and pro shop sales at the Auburn Golf Course, recreational classes, ticket sales for performing arts events (currently held at alternate venues during construction of the Auburn Avenue Theater), senior programs, and special events. Overall, this category of revenues outperformed budget expectations by $20,000 (3%). Recreation classes account for 50% of year-to-date culture and recreation collections and remain consistent with prior-year levels, totaling $340,000 in Q1-2026. Ticket sales for performances held at local school venues have increased by$17,000 (43%)from prior year totals and carry a favorable variance to budget of$35,000. This is mainly due to the success of several shows and as a result, ticket revenue was higher than the same period last year based on increased ticket prices and attendance. With continued participation in community activities throughout the remainder of the year, the City is expecting a slight increase in revenues in 2026. A further $122,000 (18%) of year-to-date Culture and Recreation revenues was generated by the Auburn Golf Course. This is considerably lower than prior year collections due to the late 2025 flooding event, which forced the golf course to close from December 2025 until mid-February 2026. As a result, green fee revenues decreased by $112,000 (60%)from the same period last year and are unfavorable to year-to-date budget by $287,000. The City projects that green fee collections will return to normal levels throughout the remainder of the year, as the golf course typically collects about 65% of its total revenues during the peak months of May through September. Page 34 of 61 Quarterly Financial Report Through March 2026 19 Culture & Recreation 02026Budget -0-2026YfDActual -2025Actual $4 - $3 � I O $2 $1 SO Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Fines & Penalties include civil penalties (such as code compliance fines), parking and traffic infraction penalties, criminal fines (including criminal traffic, criminal non-traffic, and other criminal offenses) as well as non-court fines such as false alarm fines. The table below shows a detailed breakdown of the different types of fines and penalties collected by the City. Fines&Penalties by Type Through March 2026 1111. 2026 Favorable(Unfavorable) 2025 2026 YTD Actual vs.2025 Actual Revenue Annual Budget YTD Budget YTD Actual Amount Percentage • • _ ount I '- - CM Penalties $ 1,000 $ 72 $ 3,340 $ 3,268 4551.2% $ 345 $ 2,995 867.2% Cm!Infraction Penalties 156,700 34,300 56,130 21,830 63.6°°J 55,978 152 0.3% Photo Enforcement 1,100 400 - (400) -100 0%) - - #DIV/0! Parking Infractions 4,516,497 1,338,400 508,853 (829,547) -62 o%) 518,187 (9,3345 -1.8% Criminal Traffic Misdemeanor 31,800 9,600 6,943 (2,657) -27 7%) 27,906 (20,963) -75.1% Criminal Non-Traffic Fines 49,200 11,000 (6,810) (17,810) -161.9%) 17,353 (24,163) -139.2% Criminal Costs 12,400 5,400 1,800 (3,600) -66.7%J 2,588 (788) -30.4% Non-Court Fines&Penalties 48,000 8,100 320,976 312,876 3862 7°° 157,385 163,591 103.9% Total $ 4,816,697 $ 1,407,272 $ 891,232 $ (516,039) -36 7°0 $ 779,743 $ 111,490 14.3% Total revenues collected through March 2026 were$891,000, compared to a budget of$1.4 million, and were 37% below budget expectations. This is primarily due to a reduction in photo enforcement collections throughout the first quarter. Offsetting a portion of the shortfall, collections of non-court fines and penalties exceeded both budget expectations (+$313,000) and Q1-2025 totals (+$164,000), largely driven by assessed fines and penalties on past-due B&O taxes. The City contracts with the King County Court to operate its municipal court services. Court-related activity - including hearings, judgments, and collections - began declining in 2019 and has continued to trend downward. Although the graph below shows a large spike in revenue in 2023 and 2024, this is almost entirely due to photo enforcement and B&O-related collections rather than traditional court activity. Excluding those sources, court-related collections have declined to $61,000, approximately one-third the level observed between 2015-2018, before the City began contracting with King County. Partly in response to this trend, the City Council has approved the establishment of a municipal court in Auburn effective January 1, 2027. Page 35 of 61 Quarterly Financial Report Through March 2026 20 Fines& Penalties $5 $4 $3.7 $3,5 i $3 $2.6 $2 $0.9 $1 • $0.4 $0, 50 2021 2022 2023 2024 2025 2026 YTD Miscellaneous Revenues consist of investment earnings, income from facility rentals, revenue collected for golf cart rentals at the Auburn Golf Course, contributions and donations, and other income such as the quarterly purchasing card (P-card) rebates. The most significant miscellaneous revenue categories are listed in the table below. Throu 2026 Favorable(Unfavorable) 2025 2026 YTD Actual vs.2025 Actual Revenue Annual Budget' YTD Budget I YTD Actual Amount I Percentage YTD Actual Amount I Percentage Interest&Investments $ 790,900 $ 140,167 $ 467,693 $ 327,526 233.7% $ 617,105 $ (149,412) -24 2% 'Rents&Leases 1,190,180 255,600 256,282 682 0.3%) 302,492 (46,211) -15 3% 'Contributions&Donations 16,000 2,109 5,457 3,348 158.8% 5,167 291 5.6% 'Other Miscellaneous Revenue 208,000 32,322 72,587 40,265 124.6%1 37,995 34,592 91 0% Total $ 2,205,080 $ 430,198 $ 802,018 $ 371,820 86.4°° $ 962,759 $ (160,740) -16.7% Revenues collected year-to-date totaled $802,000 and were $372,000 (86%) favorable to budget. Of the favorable variance, 88% is attributable to interest and investment collections, far exceeding budget projections due to higher-than-expected interest rates (though lower than the prior year) and the maturation of multiple investments during the first quarter. The rents and leases category includes payments for facility rentals, golf cart rentals, and the restaurant lease at the golf course. Revenues in this category were par for the course compared to year-to-date budget expectations. However, the flooding event forced the closure of the golf course until mid-February, significantly reducing golf cart rental revenues (-59,000). Moreover, the golf cart fleet itself was rendered inoperable, although the City was able to replace these vehicles prior to the reopening of the course. Mitigating the loss of golf-related revenue, the City saw strong performance in facility and other rentals and concessions. This is a good sign for the outlook of these revenues as the City collects most of these revenues in the warm spring and summer months. Likewise, facility rentals were favorable to budget expectations by $14,000, resulting in a slight favorable variance for the category. To date, rents and leases are $46,000 below Q1-2025 levels, mainly due to the loss of golf cart rental revenue. Page 36 of 61 Quarterly Financial Report Through March 2026 21 The"Other Miscellaneous Revenue"sub-category reported $35,000 more than the same timeframe last year and was favorable to the year-to-date budget by$40,000. This category includes revenue related to a national opioid settlement distribution program; however, the City did not receive settlement payments during the first quarter of the year, offsetting a portion of the favorable budget variance. These payments are expected to experience volatility over the upcoming years, as some companies involved in the settlements elect to pay off their obligations early, while other companies are still navigating the settlement process and may begin payments in the future. Miscellaneous Revenues S5 $4.5 J4'e i $4 $3.3 ° $3 $2.4 $2 $1.5 50.8 $1 r $0 2021 2022 2023 2024 2025 2026 YT❑ Page 37 of 61 Quarterly Financial Report Through March 2026 22 OTHER FUNDS Real Estate Excise Tax(REET) revenues are taxes on the sale of both commercial properties and single-family residences. These collections are receipted into the Real Estate Excise Tax Fund and transferred to other funds to support governmental capital projects. REET revenues collected year- to-date in 2026 total $808,000, which is $425,000 (53%) favorable to budget expectations. Due to its historical volatility, this revenue is budgeted conservatively. With lower current interest rates, the climate for real estate sales seems favorable within the State of Washington. Despite these supportive conditions, year-to-date REET collections in 2026 have generally remained consistant with prior year collections.Although current revenues exceed budget projections, they represent the median first-quarter total of the past fourteen years — suggesting a stablizing market even as interest rates continue to ease from their 2023 peak. Real Estate Excise Tax ©2026Budget —41-2026 YT D Actual —2025 Actual S $3 $2 $0.8 M $1 Sep Oct Nov Dec Real Estate Excise Tax Revenues Through March 2026 2026 Favorable(Unfavorable) 2025 2026 YTD Actual vs.2025 Actual Revenue Annual Budget YTD Budget YTD Actual Amount Percentage YTD Actual Amount Percentage Real Estate Excise Tax $ 1,800,000 $ 382,822 $ 807,682 $ 424,860 52.6% $ 734,997 $ 72,685 9.9% Total $ 1,800,000 $ 382,822 $ 807,682 $ 424,860 52.6°° $ 734,997 $ 72,685 9 9% REET collections reached their highest point in 2021 following two years of historically low interest rates maintained by the Federal Reserve in response to COVID-19. Subsequent rate increases in 2022 and 2023 to combat inflation slowed the real estate market and reduced REET activity. Interest rates were lowered in January 2026, with an additional rate cut anticipated in April. With market uncertainty throughout the country, the City is monitoring REET collections closely. Generally, REET revenues have reflected the overall market volatility in recent years, with a standard deviation of$959,000 or 104% of the average annual collections over the period of 2017 to 2025. Page 38 of 61 Quarterly Financial Report Through March 2026 23 Real Estate Excise Tax Revenues $7 $60 $5.5 $6 $5.3 $5 ° $4 3.5 $3.6 3 $3 $2 $1 $0.8 • $0 2021 2022 2023 2024 2025 2026 YT❑ American Rescue Plan Act (ARPA) Fund In March 2021 the American Rescue Plan Act (ARPA) was signed into law, with the intent of mitigating the economic impacts related to COVID-19. Through ARPA's State and Local Government Fiscal Recovery Fund program, the City was allocated $14.8 million in funding; Council approved the City's acceptance of ARPA funds in Resolution #5608. The City has since used all $14.8 million of the ARPA funds to mitigate the cost of providing public safety services. As a result of the cost mitigation provided by the ARPA funding, the City has been able to allocate General Fund funding toward projects approved by the Council's ad hoc committee. As of March 31, 2026, the City has been able to spend $53,000 year-to-date and $10.2 million since 2021 on the following projects: 2026 Lifetime Spend Title Budget Q1 Spend (includes this quarter) Remaining Completed Projects 6,851,617 - 6,851,617 - HumanServicesGrantsIncludesAdmin 1,000,000 - 445,882 554,118 Theater 389,700 693 693 389,007 2023 Local Street Preservation 148,167 - 58,793 89,374 Translation Services 25,000 - 1,685 23,315 Auburn Way South Roundabout 150,000 - 53,924 96,076 Emergency Housing Voucher Program 2,000,000 28,062 896,934 1,103,066 DEI Dashboard(Inclusive Auburn) 130,000 - 92,805 37,195 Downtown Infrastructure Improvements includes Theater 1,819,409 24,671 1,580,148 239,261 Community Violence Intervention Programs(Drone,SPIDR Tech) 236,248 - 204,436 31,812 Other Projects(not started) 2,001,091 - - 2,001,090 Total: 14,751,231 53,426 10,186,918 4,564,313 Auburn Avenue Theater (cp2414) In December 2021, a neighboring building fire resulted in damage to the previous Auburn Avenue Theater, necessitating the building's demolition. The theater is currently being rebuilt, with groundbreaking occurring in May 2026. This project is funded in part by $389,700 of General Fund money available due to savings created by ARPA. The limited spending ($693) of this funding source to date reflects the requirement to utilize other, higher-priority funding sources within the project prior to drawing on this allocation. Project completion is anticipated in 2026. Page 39 of 61 Quarterly Financial Report Through March 2026 24 Emergency Housing Voucher Program Beginning in 2023, the Emergency Housing Voucher Program is budgeted at $2 million over the life of the program. This program assists residents of Auburn experiencing homelessness and drug addiction who agree to enroll in and complete inpatient treatment. It will cover the costs of clean and sober housing for up to three years for participants who comply with program requirements. There are currently 20 individuals utilizing this program. Life-to-date project spend is$896,934 with $28,062 spent Q1-2026. Downtown Infrastructure Improvements (cp2321) This program will construct infrastructure improvements in downtown Auburn along Auburn Avenue from East Main Street N to 1st Street NE and on East Main Street from Auburn Ave to B Street NE, including B Street Plaza. The project supports existing and future redevelopment activities and replaces infrastructure that is at or near the end of its useful life. Construction has begun and is anticipated to be completed by the early part of 2026. Total expenditures to date are $1.6 million, with $24,671 spent in the first quarter. Enterprise Funds Operating activities include revenues and expenditures associated with day-to-day fund operations, whereas capital activities relate to construction projects and capital acquisitions. The net effect of these activities equals the change in the fund's working capital balance, which is calculated as current assets minus current liabilities. As noted earlier in this report, the City charges all departments their full insurance allocation in the first quarter, rather than spreading the cost evenly across the year. The total insurance charge for 2026 was lower than expected, resulting in favorable budget variances in interfund allocations for the City's funds. Through March 2026, the Water Utility Fund had operating income of $1.3 million (operating revenues less operating expenditures), an increase of +$173,000 over the same period last year. This is consistent with expectations following the 2026 rate increases adopted under Ordinance No. 7004. Total operating revenues increased $436,000, from $4.5 million through Q1-2025 to$4.9 million through Q1-2026. This increase was driven by both rate adjustments and higher water consumption; charges for service revenues were $4.8 million through Q1-2026 compared to $4.2 million through Q1-2025, a 13% increase. This was partially offset by a year-over-year decrease of $127,000 in interest earnings. Operating expenses also increased from $3.3 million to $3.6 million (+$263,000). Expenses increased in several areas compared to the prior year, including personnel costs (+$121,000), supplies (+$28,000), and other service charges (+$132,000). Compared to projections, the fund's operating income is $845,000 favorable to the year-to-date budget. Operating revenues were $560,000 higher than anticipated through Q1-2026, with interest earnings outperforming budget expectations by $111,000, along with higher charges for services (+$437,000). Operating expenditures had a $285,000 favorable variance to budget, driven by the lower-than-expected interfund insurance allocation (-$135,000), external utility expenditures (-$89,000), excise tax (-$88,000), professional services (-$49,000). These favorable variances were partially offset by higher than anticipated interfund utility taxes (+$23,000), personnel costs (+$35,000) and supplies (+$16,000). Page 40 of 61 Quarterly Financial Report Through March 2026 25 Billable water consumption through Q1-2026 totaled 625,000 ccf (hundred cubic feet), which is 31,000 ccf(5%) higher than consumption in Q1-2025. Increases in consumption were seen across nearly all customer classes, with the largest gains seen in commercial, manufacturing, schools and multifamily homes. These increases were partially offset by a slight decrease in the irrigation customer class. Water Revenues and Water Sold 2025 vs 2026 $3.OM 1,000 $2.5M • 800 • $2.0M • •• 600 a o 400 $1.0M "'^Ct• ....... 200 $O.SM $0.0M - ao Fe•O 4.4 plc ,� ...pc" 1J\ �� yeQ d ao� Qec 2025 Water Sales($) 2026 Water Sales($) 2025 Water Sold(ccf) 2026 Water Sold(ccf) Compared to the same period last year, the Sewer Utility Fund saw an 9% increase in operating income, from $1.2 million through Q1-2025 to $1.3 million in Q1-2026. Operating revenues increased by $488,000 (16%) to $3.6 million from $3.1 million in the same period last year due to strong performance in charges for City sewer service (+$388,000) and interest earnings (+$65,000). The fund also saw an increase of $35,000 in miscellaneous revenues for insurance recoveries and a refund on excise taxes previously paid. These gains were offset by corresponding increases in operating expenses, which rose $384,000 from $1.9 million through Q1-2025 to $2.3 million through Q1-2026. This increase was driven primarily by repair and maintenance costs related to the flooding event (+$284,000) and higher excise tax and interfund utility tax charges (+$84,000). Through Q1-2026, the fund outperformed budget expectations with a $911,000 favorable variance in operating revenues, led by charges for service (+$493,000) and interest earnings (+$383,000). Operating expenditures ended slightly below budget by$16,000. Costs related to the flooding event drove service charges to be higher than anticipated (+$151,000); however, these overruns were offset by savings from a lower-than-expected interfund insurance allocation (-$78,000) and personnel costs (-$89,000). The Stormwater Utility Fund had operating income of$898,000 through Q1-2026, an increase of $64,000 from the same period last year. While operating revenues were higher through Q1-2026 compared to Q1-2025 (+$140,000), operating expenses for this fund were also higher during the same period (+$76,000). Charges for service revenue increased $125,000 (4%) from Q1-2025. Primary drivers for the increase in operating expenditures were higher service charges (+$100,000), and interfund charges (+$5,000), which were offset by decreases in personnel costs (-$22,000) and supplies (-$7,000). Page 41 of 61 Quarterly Financial Report Through March 2026 26 This fund also outperformed budget expectations, with a $321,000 favorable-to-budget variance in operating income. Operating revenues outperformed budget expectations by $180,000 due to higher than anticipated charges for service (+$57,000) and interest earnings (+$123,000). Meanwhile, expenditures were lower than anticipated (-$141,000), with savings in personnel costs (-$70,000), supplies (-$16,000), professional services (-$40,000) and the interfund insurance allocation (-$31,000). These savings were offset by higher than anticipated repair and maintenance costs unrelated to the flooding event (+$21,000). The Solid Waste Utility Fund finished Q1-2026 with operating income of $1.8 million, which is $110,000 million higher than the$1.7 million reported through the same period last year. Operating revenues increased $512,000, driven by an increase of$494,000 (6%) in charges for service as a direct result of the service rates adopted in Ordinance No. 6920. Operating expenditures also increased, rising from $6.5 million through Q1-2025 to $6.9 million through Q1-2026. This increase is consistent with expectations, as payments to the City's solid waste provider are correlated with rates adopted for services. Total professional services increased $396,000 compared to the prior year, driven mainly by increased payments to the City's solid waste provider (+$271,000) as well as higher excise and interfund utility taxes (+$89,000). Compared to budget expectations, operating revenues were higher than anticipated (+$254,000) due primarily to charges for service (+$231,000) and interest earnings (+$23,000). Operating expenses were also higher than expected (+$81,000), due to higher than anticipated excise and interfund utility taxes (+$296,000), partially offset by lower than anticipated payments to the City's solid waste provider (-$214,000). In total, the fund had a $173,000 favorable variance in operating income compared to budget expectations through Q1-2026. Internal Service Funds The Insurance Fund incurred $3.8 million of expenditures for 2026 insurance premiums, which was $439,000 lower than the $4.2 million charged in 2025. Further, this amount was $1.8 million lower than anticipated, resulting in lower interfund allocations for insurance expense across the City. Because interfund insurance revenues correspond directly to actual charges, the change to working capital was minimal ($12,000). The Facilities Fund reported a negative working capital balance of $302,000 through Q1-2026, driven by unanticipated service charges related to the flooding event. Of the $933,000 in total service charges incurred, $312,000 was specifically for flood mitigation. The remaining $621,000 in service charges included work previously contracted in 2025, along with ad hoc facility repairs and ongoing maintenance fees for the City's main buildings. No significant variances are reported in the Workers' Compensation, Innovation &Technology, or Equipment Rental Funds. Contact Information This report has been prepared by the Finance Department. Additional financial information can also be viewed at our website: http://www.auburnwa.gov/. For any questions about this report please contact Jamie Thomas at idthomas(a�auburnwa.gov. Page 42 of 61 CITY OF /\1JBL.JRN4 AGENDA BILL APPROVAL FORM WASHINGTON Agenda Subject: Meeting Date: Ordinance No. 7023 Budget Amendment#5 (Thomas) (20 Minutes) June 29, 2026 An Ordinance amending the City's 2025-2026 Biennial Budget Department: Attachments: Budget Impact: Finance 2026 Budget Amendment#5 Presentation, Transmittal Memo, Ordinance No. 7023, Ordinance No. 7023 Schedule A, Ordinance No. 7023 Schedule B Administrative Recommendation: For discussion only. Background for Motion: Background Summary: Ordinance No. 7023 (Budget Amendment No. 5) represents the fifth budget amendment for the 2025- 2026 Biennium. This amendment consists of adjustments to Capital Project Budgets; recognition of new grant awards and adjustments of estimated grant awards and their associated expenditures; and new expenditures offset by new revenues, adjustments to existing programs, and limited requests for new budget authority. For details, see the attached transmittal memorandum and supporting materials. Councilmember: Hanan Amer Staff: Jamie Thomas Page 43 of 61 2025/2026 Budget Amendment # 5 CITY COUNCIL STUDY SESSION DUNE 29, 2026 Page 44 of 61 Budget Adjustment #5 Types of Adjustments Programs with Revenue Adjustments New Programs 2025 Carry Forward Page 45 of 61 General Fund SummaryChangesof $ 16, 167carryforward items from 2025 (1 items) $ 111,582 in programs with new revenue (6 items) $274,000 in new programs (3 items) lr Page 46 of 61 General Fund New Items Fund Balance Impact Type Description Fund Revenue Expenditure Net Impact New Revenue EMPG Grant $ (2,596) $ 14,004 $ (16,600) New Revenue CDBG TrueUp (45,051) $ (45,051) - New Revenue Bullet Proof Vest Grant TrueUp 3,240 3,240 - New Revenue Comcast Reimbursement 1,893 1,893 - New Revenue Cascade Bike Club Grant 191,800 191,800 - New Revenue Transfer Admin Fee from Impact Fee Fund 128,182 - 128,182 New Program Public Defense Contracts - 195,000 (195,000) New Program Municipal Court Start Up Costs- Initial - 44,000 (44,000) New Program Replace Custodial Equipment(ISF) - 35,000 (35,000) Carry Forward Housing Repair Contracts-2025 - 16,167 (16,167) Total General Fund Adjustments $ 277,468 $ 456,053 $ (178,585) Page 47 of 61 All Other Funds - SummaryChangesof $22,323 in new programs (2 items) -$ 105,859 in programs with new revenue (9 items) Ir Page 48 of 61 All Other Funds Detailed Requests Type Description Fund Revenue Expenditure Net Impact New Revenue R/21st ST SE RAB Grant General Transportation 220,800 220,800 - New Revenue Division/1st WSDOT Grant General Transportation 139,125 139,125 - New Revenue C St SW Preservation WSDOT Grant General Transportation 161,000 161,000 - New Revenue Flood -Side Sewer Repair Reimbursement Cumulative Reserve 284,043 - 284,043 New Revenue Flood -Side Sewer Repair Reimbursement Sewer 22,323 284,043 (261,720) New Revenue King County CFT Frant for Soos Creek Gardens Park Construction Fund 2,120,000 2,120,000 - New Revenue 4Culture Grant-Theater Capital Improvement Fund 625,000 625,000 - New Revenue Early Adopter of WA CBPS Funds Facilities 18,904 18,904 - New Revenue Transfer Admin Fee to General Fund Mitigation 128,182 (128,182) New Program GSA Property Road/Utilities Capital Improvement Fund - 100,000 (100,000) New Program Replace Custodial Equipment Water/Sewer 15,000 (15,000) New Progam Reduce Excise Tax Expense Sewer (400,000) 400,000 Total Adjustments-All Other Funds $ 3,591,195 $ 3,412,054 $ 179,141 Page 49 of 61 Next Steps : July 6, 2026 Adopt BA#5 Page 50 of 61 CITY OF * Interoffice Memorandum AUBURN WASHINGTON To: City Council From: Jamie Thomas, Finance Director CC: Nancy Backus, Mayor Date: June 29, 2026 Re: Ordinance#7023—2025-2026 Budget Amendment#5 The City's biennial 2025-2026 budget was approved by Council as two one-year appropriations. Budget Amendment#5 will be the fifth budget amendment for the biennium and will update the 2026 appropriations. For details on specific requests to amend the biennial budget, please refer to the accompanying Schedule A, Summary of 2026 Budget Adjustments by Fund.The purpose of this budget amendment is to: 1. Adjust operational expenditures; and 2. Recognize new grant awards and their associated expenditures; and 3. Adjust capital project budgets. Net Effects on 2026 Fund Balance: The fund balance(or ending working capital for proprietary funds)of a fund is affected when revenues and expenditures within a fund are not equal. If revenues exceed expenditures, fund balance increases; if expenditures exceed revenues, fund balance decreases. Budget Amendment No. 5 has the following effects on fund balance by fund type: • General Fund (Fund 001) $ -178,585 • Special Revenue Funds (Funds 1*) 155,861 • Debt Service Funds (Funds 2*) - • Governmental Capital Funds (Funds 3*) -100,000 • Enterprise Funds (Funds 4*) 123,280 • Internal Service Funds (Funds 5*) - • Agency Funds (Funds 6*) - • Permanent Funds (Funds 7*)NET EFFECT ON FUND BALANCE $ 556 AUBURN * MORE THAN YOU IMAGINED Page 51 of 61 Adjust Operating Budget: These requests represent changes to the operating budget due to revisions of existing budget authority and requests for new budget authority. Presented below is the new expenditure authority requested, net of interfund activity. • Comcast emergency repair reimbursement' $ 285,936 • Increase public defense costs based on anticipated case load 195,000 • Replace aging custodial equipment 50,000 • Reduce sewer utility excise tax expenditure 2 -400,000 • Other operating adjustments (two total)3 60.167 NEW EXPENDITURE AUTHORITY $ 191,103 NET EFFECT ON FUND BALANCE $ 117,156 Adjust capital project budgets: These requests represent changes to project budgets to align with updated timelines and project scopes in accordance with strategic planning. Shown below is the additional expenditure authority requested, along with the additional expenditure authority and net effect on citywide fund balance: • GSA property driveway access and utilities project design $ 100,000 • Lake Tapps Parkway lighting4 0 NEW EXPENDITURE AUTHORITY $ 100,000 NET EFFECT ON FUND BALANCE $ -100,000 Grant awards and adjustments: These requests recognize the receipt of new grants not previously budgeted, true-ups of previously approved grant budgets to award amounts, and authorization of associated grant expenditures. As such, there is generally a net-zero effect on fund balance for these requests unless a grant match is required. What is shown below is the additional expenditure authority requested, which in each case is offset by a corresponding adjustment to revenue. These requests include: • KC Conservation Futures Tax Levy Grant: Soos Creek Botanical Gardens $ 2,120,000 • 4Culture Grant: Auburn Avenue Theater 625,000 • WSDOT Grant: R/21st Street SE Roundabouts 220,800 • Cascade Bike Club Grant: Bicycle Program 191,800 • WSDOT: C Street SW Preservation6 161,000 ' A reimbursement to the City for repairs necessitated by Comcast operations.Full reimbursement is$308,259;this request restores$284,043 of expenditure authority to the Sewer fund while reimbursing the Cumulative Reserve and General fund,which previously covered these expenses. 'Reduce the expenditure budget for sewer utility excise tax payments based on current projections. 3 Provide budget for two hourly judges for the Municipal Court to cover the remainder of 2026($44,000); carry forward budget for housing repair program costs obligated but not spent in 2025 ($16,167). 4 This program is currently split across Fund 102(General Transportation)and Fund 328(General Governmental Capital Projects).It has been determined this entire project should be recorded in Fund 102.No increase to expenditure authority. This adjustment is a true-up of an existing budgeted grant award and expenditure to the actual award amount. 6 Supplemental grant funds awarded to existing project. AUBURN * MORE THAN YOU IMAGINED Page 52 of 61 • WSDOT: 1st Street NE/NW& Division Street Pedestrian Improvements6 139,125 • Other grants (four total)' -8,903 NEW EXPENDITURE AUTHORITY $ 3,448,822 NET EFFECT ON FUND BALANCE $ - 16,600 Interfund Activity: The following interfund transfers and allocations are necessary to facilitate the amendments listed above. • Interfund Activity $ 572,142 NEW EXPENDITURE AUTHORITY $ 572,142 NET EFFECT ON FUND BALANCE $ 0 The following tables summarizes the current and revised budget as a result of this amendment. Table 1: 2026 Budget as Amended 2026 Amended Budget $626,815,809 Budget Amendment#5(Ord#7023) 4,312,623 Budget as Amended $631,128,432 Attachments: ❖ 1. Proposed Ordinance#7023(budget adjustment#5) ❖ 2. Summary of proposed 2026 budget adjustments by fund and department(Schedule A) ❖ 3. Summary of proposed changes to the amended 2026 budget by fund (Schedule B) 'Puget Sound Energy Clean Building Performance Standard($18,904);FEMA Emergency Management Performance Grant—includes expenditure budget true-up($14,004); Office of Justice Programs Bulletproof Vest Program($3,240), Housing and Urban Development CDBG grant true-up—reduce budget to match actual award(-$45,051). AUBURN * MORE THAN YOU IMAGINED Page 53 of 61 ORDINANCE NO. 7023 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AMENDING THE CITY'S 2025-2026 BIENNIAL BUDGET WHEREAS, at its November 18, 2024 regular meeting, the Auburn City Council enacted Ordinance No. 6848, which adopted the City's 2025-2026 Biennial budget (Budget); and WHEREAS, the City Council has amended the Budget four times since adoption (by enacting Ordinance No. 6975 on May 19, 2025, Ordinance No. 6991 on August 4, 2025, Ordinance No. 7000 on November 17, 2025, and Ordinance No. 7017 on April 20, 2026); and WHEREAS, the City deems it necessary to amend the Budget to appropriate additional funds into the various Budget funds outlined in the schedules attached to this Ordinance; and WHEREAS, the City Council has approved this Ordinance by one more than its majority in accordance with RCW 35A.34.200. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON DO ORDAIN as follows: Section 1. Amendment of the 2025-2026 Biennial Budget. Pursuant to RCW 35A.34, the City hereby amends its 2025-2026 Biennial Budget to reflect the revenues and expenditures shown on Schedules "A" and "B", attached hereto and incorporated herein by reference. Section 2. Implementation. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this legislation. Ordinance No. 7023 June 10, 2026 Page 1 of 2 Page 54 of 61 Section 3. Severability. The provisions of this Ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this Ordinance, or the invalidity of the application of it to any person or circumstance, will not affect the validity of the remainder of this Ordinance, or the validity of its application to other persons or circumstances. Section 4. Corrections. The City Clerk and the codifiers of this Ordinance are authorized to make necessary corrections to this Ordinance including, but not limited to, the correction of scrivener's/clerical errors, references, Ordinance numbering, section/subsection numbers, and any references thereto. Section 5. Effective date. This Ordinance will take effect and be in force five days from and after its passage, approval, and publication as provided by law. INTRODUCED: PASSED: APPROVED: NANCY BACKUS, MAYOR ATTEST: APPROVED AS TO FORM: Shawn Campbell, MMC, City Clerk Jason Whalen, City Attorney Published: Ordinance No. 7023 June 10, 2026 Page 2 of 2 Page 55 of 61 Schedule A Summary of 2026 Budget Adjustments by Fund Budget Amendment#5 (Ordinance#7023) Ending Fund Beg.Fund Balance Revenues Expenditures Balance General Fund (#001) 2026 Adopted Budget 33,158,530 106,950,907 114,023,485 26,085,952 Previous Budget Amendments 19,825,957 5,717,204 10,831,623 14,711,538 2026 Amended Budget 52,984,487 112,668,111 124,855,108 40,797,490 BA#5(Ordinance#7023,Proposed): - 277,468 456,053 (178,585) Administration _ EMPG Grant Reduction - (2,596) 14,004 (16,600) Human Resources _ Public Defense Cost Increase - - 195,000 (195,000) Municipal Court _ Initial Court Costs-Ord#6991 - - 44,000 (44,000) Community Development _ Housing Rep 2025 Contracts CF - - 16,167 (16,167) Human Services _ CDBG26 Budget Correction - (45,051) (45,051) - _ Police _ Bulletproof Grnt Trueup PD2508 - 3,240 3,240 - _ Public Works _ Comcast Rmbt Req EM2502.RPEM1 - 1,893 1,893 - Parks,Arts&Rec Cascade Bike Club Grant GR2604 - 191,800 191,800 - Non-Departmental _ Replacement of all Aging Custodial Equipment - - 35,000 (35,000) Xfer Sch Admn Fee-F124 to GF - 128,182 - 128,182 Revised 2026 Budget-Fund 001 52,984,487 112,945,579 125,311,161 40,618,905 Page 56 of 61 Schedule A Summary of 2026 Budget Adjustments by Fund Budget Amendment#5 (Ordinance#7023) Ending Fund Beg.Fund Balance Revenues Expenditures Balance 1General Transportation Fund (#102) 1 2026 Adopted Budget 5,168,764 10,602,973 9,162,300 6,609,437 Previous Budget Amendments 10,123,802 25,656,238 35,290,859 489,181 2026 Amended Budget 15,292,566 36,259,211 44,453,159 7,098,618 BA#5(Ordinance#7023,Proposed): - 544,785 544,785 - R/21st ST SE RAB Grant CP2308 - 220,800 220,800 - Division/1st Add Grant CP2424 - 139,125 139,125 - C St SW Prsry Add Grant CP2425 - 161,000 161,000 - Lake Tapps Parkway Lighting - 23,860 23,860 - Revised 2026 Budget-Fund 102 15,292,566 36,803,996 44,997,944 7,098,618 1 Cumulative Reserve Fund (#122) 2026 Adopted Budget 33,171,351 80,000 825,600 32,425,751 _ Previous Budget Amendments 11,418,331 - 4,994,047 6,424,284 2026 Amended Budget 44,589,682 80,000 5,819,647 38,850,035 BA#5(Ordinance#7023,Proposed): - 284,043 - 284,043 Comcast Rmbt Req EM2502.RPEM1 - 284,043 - 284,043 Revised 2026 Budget-Fund 122 44,589,682 364,043 5,819,647 39,134,078 1 Mitigation Fees Fund (#124) 1 2026 Adopted Budget 3,441,291 1,236,900 2,794,373 1,883,818 Previous Budget Amendments 10,152,901 - 8,493,669 1,659,232 2026 Amended Budget 13,594,192 1,236,900 11,288,042 3,543,050 BA#5(Ordinance#7023, Proposed): - - 128,182 (128,182) Xfer Sch Admn Fee-F124 to GF - - 128,182 (128,182) Revised 2026 Budget-Fund 124 13,594,192 1,236,900 11,416,224 3,414,868 Page 57 of 61 Schedule A Summary of 2026 Budget Adjustments by Fund Budget Amendment#5 (Ordinance#7023) Ending Fund Beg.Fund Balance Revenues Expenditures Balance 1 Parks Construction Fund (#321) 1 2026 Adopted Budget 490,199 711,300 685,000 516,499 Previous Budget Amendments 1,436,486 2,170,021 2,510,819 1,095,688 2026 Amended Budget 1,926,685 2,881,321 3,195,819 1,612,187 BA#5(Ordinance#7023,Proposed): - 2,120,000 2,120,000 - King County CFT Grant for Soos Creek Gardens - 2,120,000 2,120,000 - Revised 2026 Budget-Fund 321 1,926,685 5,001,321 5,315,819 1,612,187 1 Capital Improvements Fund (#328) 1 2026 Adopted Budget 1,561,564 13,270,500 13,250,000 1,582,064 Previous Budget Amendments 3,521,233 25,053,431 25,738,083 2,836,581 2026 Amended Budget 5,082,797 38,323,931 38,988,083 4,418,645 BA#5(Ordinance#7023,Proposed): - 995,100 995,100 - CDBG26 Budget Correction - 293,960 293,960 - _ 4Culture 2026 Anchor Comm Grnt - 625,000 625,000 - _ Lake Tapps Parkway Lighting - (23,860) (23,860) - _ GSA Prop Dvwy/Util Prj CP2616 - 100,000 100,000 - Revised 2026 Budget-Fund 328 5,082,797 39,319,031 39,983,183 4,418,645 1 Real Estate Excise Tax Fund (#331) 1 2026 Adopted Budget 5,398,962 1,840,000 1,569,700 5,669,262 Previous Budget Amendments 11,667,581 - 5,567,136 6,100,445 2026 Amended Budget 17,066,543 1,840,000 7,136,836 11,769,707 BA#5(Ordinance#7023, Proposed): - - 100,000 (100,000) Lake Tapps Parkway Lighting - - - - GSA Prop Dvwy/Util Prj CP2616 - - 100,000 (100,000) Revised 2026 Budget-Fund 331 17,066,543 1,840,000 7,236,836 11,669,707 Page 58 of 61 Schedule A Summary of 2026 Budget Adjustments by Fund Budget Amendment#5 (Ordinance#7023) Ending Fund Beg.Fund Balance Revenues Expenditures Balance 1Water Fund (#430) 1 2026 Adopted Budget 3,381,662 22,200,250 23,286,921 2,294,991 Previous Budget Amendments 19,973,510 1,043,161 13,802,918 7,213,753 2026 Amended Budget 23,355,172 23,243,411 37,089,839 9,508,744 BA#5(Ordinance#7023,Proposed): - - 7,500 (7,500) Replacement of all Aging Custodial Equipment - - 7,500 (7,500) Revised 2026 Budget-Fund 430 23,355,172 23,243,411 37,097,339 9,501,244 1 Sewer Fund (#431) = 2026 Adopted Budget 14,725,640 11,505,000 12,425,228 13,805,412_ Previous Budget Amendments 20,310,452 284,043 13,847,841 6,746,654 2026 Amended Budget 35,036,092 11,789,043 26,273,069 20,552,066_ BA#5(Ordinance#7023,Proposed): - 22,323 (108,457) 130,780 Replacement of all Aging Custodial Equipment - - 7,500 (7,500) Dec.F431 2026 Excise Tax Exp - - (400,000) 400,000 Comcast Rmbt Req EM2502.RPEM1 - 22,323 284,043 (261,720) Revised 2026 Budget-Fund 431 35,036,092 11,811,366 26,164,612 20,682,846 1 Facilities Fund (#505) 2026 Adopted Budget 398,740 4,932,800 4,947,759 383,781 _ Previous Budget Amendments 256,688 1,032,413 1,577,349 (288,248) 2026 Amended Budget 655,428 5,965,213 6,525,108 95,533_ BA#5(Ordinance#7023,Proposed): - 68,904 68,904 - Replacement of all Aging Custodial Equipment - 50,000 50,000 - Early Adopter of WA CBPS Funds - 18,904 18,904 - Revised 2026 Budget-Fund 505 655,428 6,034,117 6,594,012 95,533 Page 59 of 61 Schedule A Summary of 2026 Budget Adjustments by Fund Budget Amendment#5 (Ordinance#7023) Ending Fund Beg.Fund Balance Revenues Expenditures Balance Grand Total -All Funds 2026 Adopted Budget 141,526,173 280,938,953 289,766,103 132,699,023 Previous Budget Amendments 136,322,900 68,027,783 149,079,946 55,270,737 2026 Amended Budget 277,849,073 348,966,736 438,846,049 187,969,760 I Total BA#5(Ordinance#7023, Proposed): - 4,312,623 4,312,067 556 Revised 2026 Budget 277,849,073 353,279,359 443,158,116 187,970,316 631,128,432 631,128,432 Page 60 of 61 Schedule 202G Ending Fund Ba|mncm/Working Capital by Fund 2026 2026 Amended Amended B##5 B##5 Beginning Ending (ORD#7023) (ORD#7023) BA Net Change Revised Ending Fund Balance Balance Revenues Expenditures Fund Balance Balance General Fund (#OO1) 52.984.487 40.797'490 277.408 456'053 (170.585) 40.018'905 General Transportation Fund(#1O2) 15.292.508 7.098'018 544.785 544.785 ' 7.098.618 Hotel/Motel Tax Fund (#1O4) 385.943 309.343 ' ' ' 309.343 ^ ^ Arterial Street Preservation Fund(#1O5) 6'804.678 4.808'565 ' ' ' 4.808'565 Drug Forfeiture Fund (#117) 823.586 078.8OO ' ' ' 678.800 ^ ^ Recreation Trails Fund(#12O) 03.029 71'129 ' ' ' 71'129 Cumulative Reserve Fund(#122) 44.589.082 38.850.035 284.043 ' 284.043 39.134.078 Mitigation Fees Fund (#124) 13.594.192 3.543'050 ' 128.182 (128.182) 3.414'888 2O2OLTGOA&8 Refunding BondoFund(#232) 498.405 498.505 ' ' ' 498.505 SCORE Debt Service Fund (#23O) ' ' ' ' ' ' LID Guarantee Fund (#249) Golf/Cemetery 2O10 Refunding Fund(#27O) ' ' ' ' ' ' ^ ^ Parks Construction Fund(#321) 1.920.085 1.612.187 2.120.000 2.120.000 ' 1.612.187 Capital Improvements Fund (#32O) 5.082.797 4.418.045 995.100 895.100 ' 4.418.045 Local Revitalization Fund (#33O) 353.125 44.437 ' ' ' 44.437 Real Estate Excise Tax Fund (#331) 17.060.543 11.709'707 ' 100'000 (100.000) 11.009'707 Water Fund(#43O) 23.355.172 9.5O8.744 ' 7.5OO (7.500) 9.501.244 ^ ^ Sewer Fund (#431) 35'030.092 20.552.066 22.323 (108.457) 130.780 20.682'846 Storm Drainage Fund(#432) 25.011.077 9.2O4.002 ' ' ' 9.204.602 ^ ^ Sewer Metro Sub Fund(#433) 5.539.425 5.582.425 ' ' ' 5.582.425 Solid Waste Fund(#434) 2.754.844 3.581.114 ' ' ' 3.501.114 Airport Fund (#435) 2.050.713 1.234.519 ' ' ' 1.234.519 Cemetery Fund (#438) 1.623.094 1.144.887 ' ' ' 1.144.887 Insurance Fund (#5O1) 1.237.410 1.074.916 ' ' ' 1.074.916 VVorkom'Comp Fund (#5O3) 3.659.144 ` 3.824.044 ' ' ` ' 3.824.044 Facilities Fund (#5O5) 055.428 95.533 68.804 08.904 ' 95.533 ^ Innovation&Technology Fund (#51O) 2.970.040 ^ 3.348.087 ' ' ' 3.348.087 Equipment Rental Fund (#55O) 8.221.655 9.536.795 ' ' ' 9.536.785 Fire Pension Fund(#011) 1.870.815 1.838.475 ' ' ' 1.838.475 Cemetery Endowment Fund(#7O1) 2.732.042 2.822.042 ' ' ' 2.822.042 Page G1of81