HomeMy WebLinkAboutDecember 2011 AGENDA BILL AP PROVAL FORM Agenda Subject: December 2011 Financial Report Date: 02/13/2012 Department: Finance Attachments: December Monthly Report Budget Impact: $0 Administrative Recommendation: Background Summary: The purpose of the monthly financial reports is to summarize for the City Council the general state of financial affairs throughout the City and to highlight signi ficant items or trends that the City Council should be aware of. The following provides a high level su mmary of the City’s financial performance. Further detail can be found within the attached financial report. The December 2011 status report highlights City revenues and expenditures and is based on financial data available as of February 6, 2012. Sales tax reported in December is for business activities that occurred in October 2011. General Fund : The general fund accounts for all of the City’s financial resources except those required by statute or to be accounted for in another fund. The General Fund is the City’s largest fund and is used to account for the majority of City services. At year end, General Fund revenue collections tota led $51.6 million, and compares 2011 budget of $49.6 million and were sufficient to meet expenses of $50.4 million. Total General Fund revenues for the City at the end of the year was $2 million higher than budg et due to relatively stronger than anticipated collections in property and sales taxes, elec tric utility taxes and building permit fees. The City’s sales taxes totaled $14.8 million and are 2.5% higher than last year. Improvement in retail activity was noted in all areas with the exceptio n of construction and services which remain weak, reflecting continued weakness in the housing market. At the end of 2011, General Fund expenditures totaled $50.4 million, or 9.1% below budget. 2011 expenditures were below budget primarily due to uns pent budget for retirement and long term care along with unspent budget for SCORE start up transiti on costs, savings due to staff vacancies and under expenditures in professional services. Enterprise Funds : The City’s eight enterprise funds ac count for operations with revenues primarily provided from user fees, charges or contracts for services. At the end of year the Water fund recognized operating income as a result of decreased expenses within professional services and utility payments and a one-ti me back bill adjustment to revenues. The Sewer fund ended this period with an operating loss due to declining revenues as a result of lower water consumption during the first half of the year and ti ming of payments to Metro for sewer services. Stormwater revenues are on target and are sufficient to meet expenses. 1
Agenda Subject: December 2011 Financial Report Date: 01/17/2012 Despite improved revenues during the summer months the Golf Course ended 2011 with slightly less revenues compared to 2010 due to less favorable weather conditions during the first half of the year. Although Cemetery program revenues for the year were higher than 2010, they were not sufficient to cover increased expenses and ended the year with an oper ating loss. To address the current year cash flow needs of this fund, the Council approved a tran sfer of $200,000 from the Cumulative Reserve fund to the Cemetery fund. Additional transfers may be needed to address cash flow needs in 2012. Internal Service Funds : Internal Service Funds provide services to ot her City departments and include functions such as Insurance, Facilities, Information Services, and Equipment Rental. At the end of the year, revenue from charges assessed to internal client depa rtments was sufficient to meet expenses Investment Portfolio : The City’s total cash and investments at year end was $98.9 million and compares to $100 million in November. Reviewed by Council & Committees: Reviewed by Departments & Divisions: Arts Commission COUNCIL COMMITTEES: Building M&O Airport Finance Cemetery Mayor Hearing Examiner Municipal Serv. Finance Parks Human Services Planning & CD Fire Planning Park Board Public Works Legal Police Planning Comm. Other Public Works Human Resources Information Services Action: Committee Approval: Yes No Council Approval: Yes No Call for Public Hearing ___/___/____ Referred to _________________________________ Until ____/___/____ Tabled ______________________________________ Until ___/___/____ Councilmember: Partridge Staff: Coleman Meeting Date: February 21, 2012 Item Number: 2
Monthly Financial Report December 2011 General Fund 2010 Summary of Sources and Uses Annual BudgetYTD BudgetYTD ActualYTD ActualAmountPercentage OPERATING REVENUES Property Tax 12,022,340 12,022,340 12,566,894 12,669,811 544,554 4.5%Sales Tax (1)14,295,000 14,295,000 14,842,978 14,482,806 547,978 3.8%Sales Tax - Annexation Credit 1,356,600 1,356,600 1,466,220 1,408,532 109,620 8.1%Criminal Justice Sales Tax 1,177,600 1,177,600 1,347,647 1,248,969 170,047 14.4%Brokered Natural Gas Tax 260,000 260,000 298,836 268,824 38,836 14.9%City Utilities Tax 2,522,800 2,522,800 2,522,971 2,385,233 171 0.0%Admissions Tax 350,000 350,000 358,736 362,506 8,736 2.5%Electric Tax 2,850,000 2,850,000 3,092,930 2,995,902 242,930 8.5%Natural Gas Tax 1,270,410 1,270,410 1,120,789 989,346 (149,621) -11.8%Cable TV Franchise Fee 689,800 689,800 800,068 794,731 110,268 16.0%Cable TV Franchise Fee - Capital 75,000 75,000 63,678 - (11,322) -15.1%Telephone Tax 1,972,900 1,972,900 2,006,136 2,068,058 33,236 1.7%Garbage Tax (external)150,000 150,000 147,788 152,720 (2,212) -1.5%Leasehold Excise Tax 45,000 45,000 49,467 37,985 4,467 9.9%Gambling Excise Tax 326,500 326,500 253,964 259,071 (72,536) -22.2%Business License Fees 200,000 200,000 215,735 215,268 15,735 7.9%Building Permits 700,000 700,000 1,104,185 769,678 404,185 57.7%Other Licenses & Permits 229,000 229,000 469,955 326,971 240,955 105.2%Intergovernmental (Grants, etc)3,541,135 3,541,135 3,427,965 4,093,323 (113,170) -3.2%Charges for Services: General Government Services 64,600 64,600 88,272 84,627 23,672 36.6% Public Safety 216,000 216,000 242,029 230,187 26,029 12.1% Development Services Fees 627,000 627,000 516,158 687,729 (110,842) -17.7% Culture and Recreation 877,500 877,500 804,912 858,661 (72,588) -8.3%Fines and Forfeits 2,208,500 2,208,500 1,940,326 2,472,411 (268,174) -12.1%Interests and Other Earnings 110,000 110,000 86,932 152,158 (23,068) -21.0%Rents, Leases and Concessions 315,000 315,000 376,637 575,102 61,637 19.6%Contributions and Donations 17,900 17,900 62,753 58,160 44,853 250.6%Other Miscellaneous 48,980 48,980 123,605 113,959 74,625 152.4%Proceeds of Gen. Long Term Debt-Refi Valley Com - - - 1,069,000 - N/A Transfers In 1,078,439 1,078,439 1,078,439 1,501,913 - 0.0%Insurance Recoveries- Capital & Operating 30,500 30,500 154,200 125,642 123,700 405.6%Total Operating Revenues 49,628,504 49,628,504 51,631,206 53,459,278 2,002,701 4.0%Operating Expenditures Council & Mayor 866,770 866,770 793,172 672,058 73,598 8.5%Municipal Court & Probation 3,291,120 3,291,120 3,052,278 2,769,564 238,842 7.3%Human Resources 833,070 833,070 800,624 704,313 32,446 3.9%Finance 1,165,540 1,165,540 1,117,926 1,101,620 47,614 4.1%City Attorney 1,645,650 1,645,650 1,554,731 1,571,983 90,919 5.5%Planning 3,789,730 3,789,730 3,746,365 3,252,612 43,365 1.1%Community & Human Services 1,089,490 1,089,490 974,505 839,807 114,985 10.6%Jail - SCORE 6,287,470 6,287,470 6,130,267 - 157,203 2.5%Police 19,890,990 19,890,990 18,158,779 22,056,429 1,732,211 8.7%Engineering 2,400,460 2,400,460 2,257,553 2,475,737 142,907 6.0%Parks and Recreation 7,346,660 7,346,660 6,988,485 6,631,156 358,175 4.9%Streets 3,126,460 3,126,460 2,714,212 2,770,364 412,248 13.2%Non-Departmental 3,763,520 3,763,520 2,153,567 6,357,383 1,609,953 42.8%Total Operating Expenditures 55,496,930 55,496,930 50,442,465 51,203,026 5,054,465 9.1%2011 2011 YTD Budget vs. Actual Favorable (Unfavorable) (1) Total Sales Tax revenue includes $1 ,987,348.12 Streamlined Sales Tax Mitigati on and $51,043.81 Pierce County Park Sales Tax. 3
Monthly Financial Report December 2011 Overview This financial overview reflects the City’s over all financial position for the fiscal year ending December 31, 2011. The report represents financia l data available as of February 06, 2012. The budgeted year-to-date revenues and operating expenses are primarily based on the collection/disbursement average for the same period of the two prior years. The table on the previous page summarizes the General Fund revenues and expenditures. At the end of December, General Fund revenues totaled $51.6 million and are 1.8 million or 3.4% less than 2010 revenues primarily due to lower intergovernmental and fines & penalties revenue in 2011 coupled with the receipt in 2010 of over 1 million in debt proceeds related to the City’s portion of Valley Communication’s debt refinance. General Fund revenue highlights include: - Property taxes totaled $12.6 million and are slightly lower than the level collected for the same period last year. - Sales taxes totaled $14.8 million, are $360.2K higher compared to collections as of December 2010. Review of sales tax activity by sector show improvements in all sectors with the exception of construction and services, which is below the same period last year due to a one-time sales tax adjustment in 2010. - Development service fees (engineering, zoning, sub-division and plan check), culture and recreational charges for services and fines and penalties, primarily from photo enforcement showed declines over the previous year. General Fund expenses totaled $50.4 million compared to $51.2 million for same period 2010. When compared to budget, General Fund expenses were 9.1% below expectations. Highlights include: - Municipal Court & Probation expenditures were below budget due to unspent budget for professional services. - Police expenditures are low compared to budget due to savings from staff vacancies. - Streets expenditures were below budget due to savings from staff vacancies and unspent budget for repairs & maintenance. - Non departmental was below budget primarily due to unspent budget for retirement benefits and SCORE start up transition costs. Revenues The combined total of property tax, sales/use tax, utility tax, gambling, and admissions tax provide 79% of all resources supporting general governmental activities. The following section provides detail information on these sources. Property Tax Property Tax collections in 2011 totaled $12.6 million and is $545K higher than budget. The majority of property tax revenues are collected during the months of April and October, coinciding with the due date for County property tax billings. 4
Monthly Financial Report December 2011 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 JanFebMarAprMayJunJulAugSepOctNovDec Millions Property Taxes 2011 budget 2011 actual 2010 actual Sales Tax 2011 taxes totaled $14.8 million are slightly greate r than 2010 receipts of $14.5 million and 2011 annual budget of $14.3 million, reflecting the gradual improvement in the economy as indicated by recent declines in the national unemployment rate. Sales taxes include Streamlined Sales Tax Mitigation payments of $1,987,348 received for the year. While the economy is improving, home foreclosures and weakness in home values continue to be a drag on the economic recovery. *Includes Sales Tax Mitigation prorated monthly. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 JanFebMarAprMayJunJulAugSepOctNovDec Millions Sales & Use Tax 2011 budget 2011 actual 2010 actual 5
Monthly Financial Report December 2011 The following table breaks out the City’s base sa les tax excluding Criminal Justice, Annexation Credit and Streamlined Sales Tax Mitigation by major business sectors. 20102011 Component GroupActualActualAmountPercentage New Construction 1,323,822 1,295,813 (28,009) -2.1%Manufacturing 404,813 582,858 178,045 44.0%Transportation & Warehousing29,185 77,083 47,898 164.1%Wholesale Trade 1,185,440 1,260,083 74,643 6.3%Automotive 2,557,905 2,785,421 227,516 8.9%Retail Trade 3,586,970 3,780,129 193,159 5.4%Services 3,306,516 2,882,241 (424,275) -12.8%Miscellaneous 128,138 223,639 95,501 74.5%YTD Total 12,522,789 12,887,267 364,478 2.9%Change from 2010 Year Ending 2011 Comparison of Sales Tax Collections by SIC Group Utility Tax This revenue source consists of City inter-fund utility taxes (Water, Sewer, Storm and Solid Waste) and external utility taxes (Electric, Natural gas, Telephone and Solid Waste). 2011 collections are in line with expectations, totaling $8.9 million or 3.5% more than 2010, due primarily to higher revenues from the City inter-fund utility taxes, electric and natural gas utility taxes which have offset lower than anticipated revenues from telephone and solid waste utility taxes. $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 JanFebMarAprMayJunJulAugSepOctNovDec Millions Utility Tax 2011 budget 2011 actual 2010 actual 6
Monthly Financial Report December 2011 The following table presents utility tax collections by source: 201020112011 Month ActualBudgetActualAmountPercentageAmountPercentage City Interfund Utility Taxes2,385,233 2,522,800 2,522,971 137,738 5.8%171 0.0%Electric 2,995,902 2,850,000 3,092,930 97,028 3.2%242,930 8.5%Natural Gas 989,346 1,270,410 1,120,789 131,443 13.3%(149,621) -11.8%Telephone 2,068,058 1,972,900 2,006,136 (61,922) -3.0%33,236 1.7%Solid Waste 152,720 150,000 147,788 (4,931) -3.2%(2,212) -1.5%YTD Total 8,591,258 8,766,110 8,890,614 299,356 3.5%124,504 1.4%Annual Total 8,591,258 8,766,110 Year Ending 2011 Utilty Tax by Type 2011 vs. 2010 2011 vs. Budget Cable TV Franchise Fees totaled $800,067 has outpaced the previous year and current year budget. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 1st Quarter2nd Quarter3rd Quarter4th Quarter Thousands Cable TV Franchise Fee 2011 budget 2011 actual 2010 actual Licenses and Permits This revenue source is comprised of business licenses, building permits, plumbing, electric and other licenses and permit fees. At the end of December, the City has collected $660,874 more than the annual projected revenue from licenses and permits. Building permit fees and Business licenses make up 80% of the annual budgeted revenue in this category. Total building permit revenues at the end of December were $1,104,185; this was $404.2K or 57.7% more than the 2011 budgeted revenues. The increase in December is primarily due to permits related to Terrace View Townhomes development. 7
Monthly Financial Report December 2011 201020112011 MonthActualBudgetActualAmountPercentageAmountPercentage Jan 88,175 59,900 78,928 (9,246) -10.5%19,028 31.8%Feb 49,731 38,300 53,862 4,131 8.3%15,562 40.6%Mar 43,796 37,500 40,897 (2,899) -6.6%3,397 9.1%Apr 44,422 56,800 84,239 39,817 89.6%27,439 48.3%May 96,244 61,500 104,495 8,252 8.6%42,995 69.9%Jun 74,701 94,500 151,177 76,476 102.4%56,677 60.0%Jul 72,745 64,300 178,330 105,585 145.1%114,030 177.3%Aug 61,216 50,600 124,922 63,706 104.1%74,322 146.9%Sep 55,073 42,600 92,413 37,339 67.8%49,813 116.9%Oct 62,522 63,500 87,970 25,447 40.7%24,470 38.5%Nov 31,192 38,300 46,726 15,534 49.8%8,426 22.0%Dec 89,861 92,200 60,226 (29,635) -33.0%(31,974) -34.7%YTD Total769,678 700,000 1,104,185 334,507 43.5%404,185 57.7%Annual Total769,678 700,000 Year Ending 2011 Building Permits 2011 vs. 20102011 vs. Budget Business License revenues at the end of 2011 were almost equal to 2010 and $15.7K or 7.9% more than the 2011 year-to-date budget. Revenues are higher compared to budget primarily due to increased outreach efforts to educate and contact businesses regarding licensing applications and renewals. $0 $50 $100 $150 $200 $250 JanFebMarAprMayJunJulAugSepOctNovDec Thousands Business License 2011 budget 2011 actual 2010 actual 8
Monthly Financial Report December 2011 Intergovernmental Revenues in this category include Grants (Direct & Indirect Federal, State and Local); State shared revenues and compact revenue from the Muckleshoot Indian Tribe. At the end of 2011 intergovernmental revenues were 16.2% less than 2010 and 3.2% less than budget mainly due to the timing of grant reimbursements. Intergovernmental Service revenues of $24.9K represents reimbursement from the Valley Regional Fire Authority for 9/11 Commemoration expenses, reimbursement from Washington State for Crisis Intervention Training and reimbursement from City of Algona & City of Pacific for Emergency Management division VISTA project expenses. 201020112011 Revenue ActualBudgetActual% Change% Change Federal Grants 538,796 701,290 473,187 -12.2%-32.5%State Grants 128,231 15,000 123,803 -3.5%725.4%Interlocal Grants 143,163 37,000 20,151 -85.9%-45.5%State Shared Revenue2,594,749 2,087,845 2,073,650 -20.1%-0.7%Muckleshoot Casino Emerg.684,863 700,000 712,294 4.0%1.8%Intergovernmental Service3,520 - 24,880 606.8%N/A YTD Total 4,093,323 3,541,135 3,427,965 -16.3%-3.2%Annual Total 4,093,323 3,541,135 YTD %100%100%97%Year Ending 2011 Intergovernmental 2011 vs. 20102011 vs. Budget Total state shared revenues are $521.1K lower than the same period 2010 and $14.2K less than 2011 budget due to the change in revenue recognition of the Motor Vehicle Fuel tax (MVFT). The MVFT allocation for Arterial Street fund and Re creational Trails fund will be posted directly to each fund instead of the General Fund. This change in accounting, which started in 2011, equates to a $537,100 budget reduction for MVFT in the General Fund. 201020112011 Revenue ActualBudgetActualAmountPercentageAmountPercentage Trial Court Improvements22,638 24,500 22,468 (170) -0.8%(2,032) -8.29%Court Interpreter Program 4,518 6,640 6,643 2,125 N/A3 0.04%Motor Vehicle Fuel Tax1,461,709 926,610 928,620 (533,089) -36.5%2,010 0.2%Criminal Justice -High Crime74,525 148,975 146,442 71,917 96.5%(2,533) -1.70%Criminal Justice -Population41,688 15,200 15,470 (26,218) -62.9%270 1.8%Criminal Justice -Spec. Prog.56,884 55,300 58,404 1,520 2.7%3,104 5.6%State DUI 12,510 7,000 14,720 2,209 17.7%7,720 110.3%Fire Insurance Premium Tax63,545 65,000 66,375 2,830 4.5%1,375 2.12%Liquor Excise Tax 327,709 338,990 335,127 7,418 2.3%(3,863) -1.1%Liquor Profits 529,022 499,630 479,381 (49,641) -9.4%(20,249) -4.05%YTD Total 2,594,749 2,087,845 2,073,650 (521,099) -20.1%(14,195) -0.7%Annual Total 2,594,749 2,087,845 Year Ending 2011 State Shared Revenues 2011 vs. 20102011 vs. Budget 9
Monthly Financial Report December 2011 Charges for Services This revenue source consists of general governmental services, public safety, development service fees and cultural & recreation fees. Development services and culture & recreation revenues make up approximately 84% of the $1.78 million annual budget for this category and are presented following the Charges for Service table below. At the end of 2011, revenue from charges for services totaled $1.7 million and was 7.5% below budget due to lower than anticipated revenues from development services and culture & recreation programs. General government services include passport services, administrative fees, court duplicating costs and sale of maps & publications. This income ca tegory is higher compared to 2010 primarily due to an $11.6K write off of prior years debit balance in October 2010 for City of Algona court services. Public Safety consists of law enforcement servic es, probation and prisoner lodging fees; overall this revenue source is $26K or 12.1% more than budget at the end of 2011 due to increased receipts from probation fees. 201020112011 Revenue ActualBudgetActualAmountPercentageAmountPercentage General Government 84,627 64,600 88,272 3,645 4.31%23,672 36.64%Public Safety 230,187 216,000 242,029 11,842 5.1%26,029 12.1%Development Services687,729 627,000 516,158 (171,571) -24.9%(110,842) -17.7%Culture & Recreation 858,661 877,500 804,912 (53,749) -6.3%(72,588) -8.3%YTD Total 1,861,204 1,785,100 1,651,371 (209,832) -11.3%(133,729) -7.5%Annual Total1,861,204 1,785,100 Year Ending 2011 Charges for Services by Type 2011 vs. 20102011 vs. Budget Development services include engineering fees, zoni ng & subdivision fees and plan check fees. At the end of 2011, revenues totaled $516.2K and are 24.9% less than the same period in 2010. Total development service revenue is less than the budget for the year by $110.8K or 17.7% primarily due to lower than anticipated engineering and zoning & subdivision fees. $0 $100 $200 $300 $400 $500 $600 $700 $800 JanFebMarAprMayJunJulAugSepOctNovDec Thousands Development Service Fees 2011 budget 2011 actual 2010 actual 10
Monthly Financial Report December 2011 Culture & Recreation revenues totaled $804.9K and consist of theater ticket sales, recreational classes, arts commission and senior citizen program fees. Collections were below budget and previous year’s performance due to lower revenue from adult health & fitness classes and afterschool programs. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 JanFebMarAprMayJunJulAugSepOctNovDec Thousands Culture & Recreation 2011 budget 2011 actual 2010 actual Fines & Penalties This revenue category includes traffic and parking in fraction penalties, criminal (traffic, non traffic and costs) and false alarm fines. Revenue from the City’s photo enforcement program makes up nearly half of total revenues from this category. 2011 collections totaled $1.9M or 12.1% lower than the projected budget, due primarily to lower photo enforcement revenues. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 JanFebMarAprMayJunJulAugSepOctNovDec Millions Fines & Penalties 2011 budget 2011 actual 2010 actual 11
Monthly Financial Report December 2011 201020112011 Month ActualBudgetActualAmountPercentageAmountPercentage Civil Penalties 22,327 15,000 21,477 (850) -3.8%6,477 43.2%Civil Infraction Penalties 728,320 555,000 656,991 (71,328) -9.8%101,991 18.4%Red Light Photo Enforcement1,199,896 1,200,000 825,337 (374,559) -31.2%(374,663) -31.2%Parking Infractions 189,860 170,000 172,137 (17,724) -9.3%2,137 1.3%Criminal Traffic Misdemeanor86,772 105,000 81,487 (5,284) -6.1%(23,513) -22.4%Criminal Non-Traffic Fines110,499 90,000 88,332 (22,167) -20.1%(1,668) -1.9%Criminal Costs 9,186 10,500 15,103 5,917 64.4%4,603 43.8%Non-Court Fines & Penalties125,551 63,000 79,462 (46,090) -36.7%16,462 26.1%YTD Total 2,472,411 2,208,500 1,940,326 (532,085) -21.5%(268,174) -12.1%Annual Total 2,472,411 2,208,500 Year Ending 2011 Fines & Forfeits by Type 2011 vs. 20102011 vs. Budget $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 JanFebMarAprMayJunJulAugSepOctNovDec Millions Photo Enforcement 2011 budget 2011 actual 2010 actual Miscellaneous This revenue source is comprised of interest and other investment earnings, rents, leases & concessions, contributions & donations and other miscellaneous income. The 2011 budget for this revenue category is $491,880 and interest & investment and rentals & leases make up 86% of the annual budget. Decreased interest earnings refl ect the impact of timing of investment activity and the low interest rates; the Local Government Investment Pool interest has decreased from 0.28% in January 2010 to 0.13% in December 2011. 12
Monthly Financial Report December 2011 Revenue from rentals & leases increased over 2011 budgeted levels, reflecting greater park facility rentals. Other miscellaneous revenue is budgeted conservatively and includes judgments & settlements, reimbursements, SuperMall officers’ se rvices and reflects a one-time $30.5K refund from King County for animal control services received in August 2011. 201020112011 Month ActualBudgetActualAmountPercentageAmountPercentage Interest & Investments 152,158 110,000 86,932 (65,226) -42.9%(23,068) -21.0%Rents & Leases 575,102 315,000 376,637 (198,465) -34.5%61,637 19.6%Contributions & Donations58,160 17,900 62,753 4,594 7.9%44,853 250.6%Other Miscellaneous Revenue113,959 48,980 123,605 9,646 8.5%74,625 152.4%YTD Total 899,378 491,880 649,927 (249,451) -27.7%158,047 32.1%Annual Total 899,378 491,880 Miscellaneous Revenues by Type Year Ending 2011 2011 vs. 20102011 vs. Budget Real Estate Excise Tax The Real Estate Excise Tax (REET) revenue is received into the Capital Improvement Projects Fund and is used for governmental capital projects. Total revenue at the end of December is $1.5M or 37.4% more than 2010 and $307.7 K or 25.6% more than budget. The increase in revenue is primarily due to a large commercial property transaction in March and increases in multi-family and commercial transactions from July through September. The increase in December is attributed to transactions related to commercial property sales. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 JanFebMarAprMayJunJulAugSepOctNovDec Millions Real Estate Excise Tax 2011 budget 2011 actual 2010 actual 13
Monthly Financial Report December 2011 Enterprise Funds The following table provides an analysis of all City Enterprise funds and shows 2011 revenues and expenditures for each enterprise fund. WaterSewer StormSolid WasteAirportCemeteryGolf OPERATING REVENUES Charges for services 9,008,117 4,148,707 6,918,497 9,529,265 25,984 751,883 1,121,811 Sewer Metro Service Revenue - 12,595,478 - - - - - Rents, Leases, Concessions & Other - - - - 608,287 1,421 267,031 TOTAL OPERATING REVENUES 9,008,117 16,744,185 6,918,497 9,529,265 634,271 753,304 1,388,842 OPERATING EXPENSES:Administration 2,346,896 1,896,452 2,735,211 773,180 488,570 282,592 235,531 Operations & Maintenance 4,080,306 2,653,506 2,557,461 9,141,504 31,081 681,081 1,150,804 Sewer Metro Services - 12,820,546 - - - - - Depreciation & Amortization 2,080,667 1,603,211 1,278,402 18,819 393,078 57,999 321,642 TOTAL OPERATING EXPENSES 8,507,869 18,973,715 6,571,073 9,933,503 912,729 1,021,672 1,707,976 OPERATING INCOME (LOSS)500,249 (2,229,530) 347,424 (404,238) (278,458) (268,369) (319,134) NON-OPERATING REVENUES & EXPENSES Interest Revenue 53,012 40,186 27,280 592 2,131 114 820 Other Non Operating Revenue 843,052 845,552 508,227 86,464 336,406 30 - Other Non Operating Expense (32,037) (21,983) - - (54,475) (22,267) (191,058) TOTAL NON-OPERATING REVENUES (EXPENSES)864,027 863,755 535,506 87,056 284,062 (22,123) (190,238) 1,364,276 (1,365,775) 882,930 (317,183) 5,604 (290,492) (509,373) Contributions 283,462 353,621 462,729 - - - - Transfers In 231,300 448,607 Transfers Out (50,000) (50,000) (96,800) - - - - TOTAL CONTRIBUTIONS & TRANSFERS 233,462 303,621 365,929 - - 231,300 448,607 CHANGE IN FUND BALANCE 1,597,738 (1,062,153) 1,248,859 (317,183) 5,604 (59,192) (60,766) BEGINNING FUND BALANCE, January 1, 201159,674,990 67,629,064 40,956,334 923,810 9,705,318 865,780 5,210,529 ENDING FUND BALANCE, December 31, 2011 61,272,728 66,566,911 42,205,193 606,627 9,710,922 806,588 5,149,763 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 14
Monthly Financial Report December 2011 The following table presents the Enterprise funds working capital statements. Working capital is generally defined as the difference between current assets and current liabilities. WaterSewer StormSolid WasteAirportCemeteryGolf OPERATING REVENUES Charges for services 9,008,117 4,148,707 6,918,497 9,529,265 25,984 751,883 1,121,811 Sewer Metro Service Revenue - 12,595,478 - - - - - Rents, Leases, Concessions & Other - - - - 608,287 1,421 267,031 TOTAL OPERATING REVENUES 9,008,117 16,744,185 6,918,497 9,529,265 634,271 753,304 1,388,842 OPERATING EXPENSES:Salaries & Wages 2,025,117 1,381,807 1,795,675 413,514 19,013 463,602 552,001 Benefits 831,723 567,985 747,799 169,481 5,143 205,414 248,578 Supplies 226,045 66,866 49,699 47,902 - 173,443 240,493 Other Service Charges 2,325,271 1,777,132 1,320,545 8,812,629 495,495 51,903 168,659 Intergovernmental Services - - 77,899 284,162 - - - Sewer Metro Services - 12,820,546 - - - - - Interfund Operating Rentals/Supplies 1,019,045 756,169 1,301,054 186,996 - 69,312 176,604 Depreciation & Amortization 2,080,667 1,603,211 1,278,402 18,819 393,078 57,999 321,642 TOTAL OPERATING EXPENSES 8,507,869 18,973,715 6,571,073 9,933,503 912,729 1,021,672 1,707,976 OPERATING INCOME (LOSS)500,249 (2,229,530) 347,424 (404,238) (278,458) (268,369) (319,134) NON-OPERATING REVENUES & EXPENSES Interest Revenue 53,012 40,186 27,280 592 2,131 114 820 Other Non Operating Revenue 843,052 845,552 296,786 86,464 2,244 30 - Other Non Operating Expense (32,037) (21,983) - - (54,475) (22,267) (191,058) TOTAL NON-OPERATING REVENUES (EXPENSES)864,027 863,755 324,065 87,056 (50,100) (22,123) (190,238) Plus Items Not Effecting Working Capital Depreciation 2,080,667 1,603,211 1,278,402 18,819 393,078 57,999 321,642 3,444,943 237,436 1,949,891 (298,363) 64,520 (232,493) (187,731) Increase in Contributions -System Development283,462 341,665 447,651 - - - - Increase in Contributions -Area Assessments - 11,956 15,078 - - - - Increase in Contributions -FAA Grants - - - - 334,162 - Increase in Contributions -KC Flood Zone Dist.- - 211,441 - - - Operating Transfers In - - - - - 231,300 448,607 Increase in Restricted Net Assets 5,734 27,219 - - (6,138) - Decrease in Long term Receivables - 45,000 - - - - - Increase in Deferred Credits - - - - 31,900 - - TOTAL RESOURCES OTHER THAN OPERATIONS289,196 425,840 674,170 - 359,924 231,300 448,607 Net Change in Restricted Net Assets 905,595 273,410 326,952 - (105,557) - (68,278) Increase in Fixed Assets - Salaries 182,373 104,500 102,642 - - - - Increase in Fixed Assets - Benefits 67,120 39,220 40,185 - - - - Increase in Fixed Assets - Site Improvements 141,884 - - - - - - Increase in Fixed Assets - Equipment 91,582 30,367 - - - 9,487 - Increase in Fixed Assets - Construction 6,019,803 2,696,729 2,719,426 - 328,452 54,916 - Operating Transfers Out 50,000 50,000 96,800 - - - - Debt Service Principal 435,568 288,262 - - 100,000 - 264,375 TOTAL USES OTHER THAN OPERATIONS 7,893,925 3,482,488 3,286,004 - 322,895 64,403 196,097 NET CHANGE IN WORKING CAPITAL (4,159,786) (2,819,212) (661,944) (298,363) 101,549 (65,596) 64,779 BEGINNING WORING CAPITAL, January 1, 201121,606,067 16,021,979 9,795,538 775,690 969,009 124,129 3,752 ENDING WORKING CAPITAL, December 31, 201117,446,281 13,202,767 9,133,594 477,327 1,070,558 58,533 68,530 NET CHANGE IN WORKING CAPITAL (4,159,786) (2,819,212) (661,944) (298,363) 101,549 (65,596) 64,779 NET WORKING CAPITAL FROM OPERATIONS 15
Monthly Financial Report December 2011 The Water Utility ended 2011 with an operating gain due primarily to a decrease in expenses within professional services and utility serv ice expenses and a one-time back bill revenue adjustment. While the utility experienced a decline in water sales during the first half of the year, sales improved during the final five months, reflecting the effects of drier weather conditions compared to October of 2010. A rate study is currently underway. Results of the rate study will be reviewed with the Council during the first quarter 2012. -200,000 400,000 600,000 800,000 1,000,000 1,200,000 JanFebMarAprMayJunJulAugSepOctNovDec Water Revenues ($) vs Water Sold (ccf)2010 -Present 2010 Water Sales ($)2011 Water Sales ($)2010 Water Sold (ccf)2011 Water Sold (ccf) The weakness in water usage during the first half of 2011 also affected the Sewer fund. The Sewer fund operating loss at the end of December is due to a combination of lower revenues associated with decreased water consumption and increased expenses related to the Metro sewer treatment services. Year-to-date Metro billings for 2011 totaled $12.8M and compares to $10.9M for the same period 2010. Billings for sewer treatment services are based on the average number of residential customer equivalents for the previous 12 months and include adjustments for Boeing and GSA during 2010. Billings for sewer treatment services are not expected to normalize until the first half of 2012 when the effects of the timing of these adjustments are worked through the rolling 12 month Metro billing cycle. Golf Course operating revenues at the end of 20 11 totaled $1.39M and is slightly less than same period in 2010. This revenue is low compared to year-to-date budget of $1.6 million, due to a decline in the level of golfing activity during the first half of the year. Total number of rounds played at the end of December is currently running about 2.5% below 2010 levels (45,968 compared to 47,139 for the same period in 2010). 16
Monthly Financial Report December 2011 $0 $50 $100 $150 $200 $250 $300 $350 JanFebMarAprMayJunJulAugSepOctNovDec Thousands Golf Course Operating Revenues by Month (2011 vs 2010)2011 Monthly Budget 2011 Actual 2010 Actual Cemetery operating revenues totaled $753.3K at the end of December and compares to $709.6K for the same period last year. While 2011 collections are up over last year, the Cemetery ended with a year-to-date operating loss. To address th e current year cash flow needs of this fund, the Council approved a transfer of $200,000 from the Cumulative Reserve fund (Ordinance #6378) to the Cemetery fund. $0 $20 $40 $60 $80 $100 $120 JanFebMarAprMayJunJulAugSepOctNovDec Thousands Cemetery Operating Revenues by Month (2011 vs 2010)2011 Monthly Budget 2011 Actual 2010 Actual 17
Monthly Financial Report December 2011 Internal Service Funds The table below provides an analysis of all City Internal Service funds and shows 2011 revenues and expenditures for each fund. InformationEquipment InsuranceFacilities ServicesRental OPERATING REVENUES:Interfund Charges for services - 3,777,996 4,171,328 2,851,035 Rents, Leases, Concessions & Other - 100,730 54,911 - TOTAL OPERATING REVENUES - 3,878,726 4,226,239 2,851,035 OPERATING EXPENSES:Administration 3,977 - 246,600 714,229 Insurance fund -Unemployment Claims 181,397 - - - Operations & Maintenance - 2,389,781 3,729,420 1,354,619 Depreciation & Amortization - - 466,653 809,984 TOTAL OPERATING EXPENSES 185,374 2,389,781 4,442,673 2,878,832 OPERATING INCOME (LOSS)(185,374) 1,488,944 (216,434) (27,797) NON-OPERATING REVENUES & EXPENSES Interest Revenue 3,221 2,663 7,421 20,859 Other Non Operating Revenue - 46,439 51,238 42,922 Other Non Operating Expense - - - - TOTAL NON-OPERATING REVENUES (EXPENSES)3,221 49,102 58,659 63,781 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS(182,152) 1,538,046 (157,776) 35,984 Contributions - - 10,538 Transfers In Transfers Out - (644,700) (500,000) (507,000) TOTAL CONTRIBUTIONS & TRANSFERS - (644,700) (500,000) (496,462) CHANGE IN FUND BALANCE (182,152) 893,346 (657,776) (460,478) BEGINNING FUND BALANCE, January 1, 2011 2,366,832 661,686 4,918,922 10,611,968 ENDING FUND BALANCE, December 31, 2011 2,184,680 1,555,032 4,261,146 10,151,490 18
Monthly Financial Report December 2011 The working capital statements for the Internal Service funds are presented on the table below. InformationEquipment InsuranceFacilities ServicesRental OPERATING REVENUES:Interfund Charges for services - 3,777,996 4,171,328 638,151 Rents, Leases, Concessions & Other - 100,730 54,911 2,212,884 TOTAL OPERATING REVENUES - 3,878,726 4,226,239 2,851,035 OPERATING EXPENSES:Salaries & Wages - 658,848 1,268,526 379,229 Benefits 181,397 266,542 447,041 141,180 Supplies - 78,869 457,711 871,930 Other Service Charges 3,977 1,295,127 1,482,942 442,648 Interfund Operating Rentals/Supplies - 90,396 319,800 233,861 Depreciation & Amortization - - 466,653 809,984 TOTAL OPERATING EXPENSES 185,374 2,389,781 4,442,673 2,878,832 OPERATING INCOME (LOSS)(185,374) 1,488,944 (216,434) (27,797) NON-OPERATING REVENUES & EXPENSES Interest Revenue 3,221 2,663 7,421 20,859 Other Non Operating Revenue - 22,023 530 49,239 Other Non Operating Expense - - - (6,316) TOTAL NON-OPERATING REVENUES (EXPENSES)3,221 24,685 7,951 63,781 Plus Items Not Effecting Working Capital Depreciation - - 466,653 809,984 (182,152) 1,513,630 258,170 845,968 Increase in Contributions -Other Government - 24,417 50,708 - Increase in Contributions -Other Funds - - 10,538 TOTAL RESOURCES OTHER THAN OPERATIONS - 24,417 50,708 10,538 Net Change in Restricted Net Assets - 1,800 - (34,722) Increase in Fixed Assets - Equipment - - 587,596 399,657 Increase in Fixed Assets - Construction - - 149,507 5,451 Operating Transfers Out - 644,700 500,000 507,000 TOTAL USES OTHER THAN OPERATIONS - 646,500 1,237,103 877,386 NET CHANGE IN WORKING CAPITAL (182,152) 891,546 (928,226) (20,880) BEGINNING WORING CAPITAL, January 1, 2011 2,366,832 714,944 3,949,793 5,826,195 ENDING WORKING CAPITAL, December 31, 2011 2,184,680 1,606,490 3,021,567 5,805,315 NET CHANGE IN WORKING CAPITAL (182,152) 891,546 (928,226) (20,880) NET WORKING CAPITAL FROM OPERATIONS The Facilities Fund revenues of $3.9M cover expenses totaling $2.6M (including $644,700 in debt service related to the annex building). Expenses are low compared to budget due to savings in professional services and utilities along with $349,290 budget for projects that will be carried forward to 2012. Equipment rental fund balance of $10.2M includes $4.3M in fixed assets net of depreciation which primarily consists of the City’s fleet vehicles. 19
Monthly Financial Report December 2011 Contact Information This report is prepared by the Finance Department . Additional financial information can also be viewed at our website: http://www.auburnwa.gov/. For any questions about the report please contact us at mchaw@auburnwa.gov or scoleman@auburnwa.gov . 20
SALES TAX SUMMAR Y DEC 2011 SALES TAX DISTRIBUTIONS (FOR OCT 2011 RETAIL ACTIVITY )2010 Annual Total 2010 YTD 2011 YTD YTD 2010 Annual Total 2010 YTD 2011 YTD YTD NAICS CONSTRUCTION (Nov '09-Oct '10)(Nov '09-Oct '10)(Nov '10-Oct '11)% Dif f NAICS A UTOMOTIVE (Nov '09-Oct '10)(Nov '09-Oct '10)(Nov '10-Oct '11)% Dif f 236Construction of Buildings 607,355 607,355 582,840 -4.0%441Motor Vehicle and Parts Dealer 2,346,944 2,346,944 2,560,962 9.1%237Heavy and Civil Construction 121,822 121,822 108,727 -10.7%447Gasoline Stations 210,961 210,961 224,459 6.4%238Specialty Trade Contractors 594,645 594,645 604,245 1.6%TOTAL AUTOMOTIVE 2,557,905 $ 2,557,905 $ 2,785,421 $ 8.9%TOTAL CONSTRUCTION 1,323,822 $ 1,323,822 $ 1,295,813 $ -2.1%Overall Change from Previous Year 227,516 $ Overall Change from Previous Year (28,010)$ 2010 Annual Total 2010 YTD 2011 YTD YTD 2010 Annual Total 2010 YTD 2011 YTD YTD NAICS RETAIL TRADE (Nov '09-Oct '10)(Nov '09-Oct '10)(Nov '10-Oct '11)% Dif f NAICS MANUFACTURIN G (Nov '09-Oct '10)(Nov '09-Oct '10)(Nov '10-Oct '11)% Dif f 442Furniture and Home Furnishings 193,852 193,852 218,335 12.6%311Food Manufacturing 2,062 2,062 2,674 29.7%443Electronics and Appliances 120,703 120,703 126,870 5.1%312Beverage and Tobacco Products 3,610 3,610 3,864 7.0%444Building Material and Garden 389,137 389,137 382,504 -1.7%313Textile Mills 121 121 959 695.8%445Food and Beverage Stores 351,329 351,329 330,776 -5.9%314Textile Product Mills 1,682 1,682 2,625 56.1%446Health and Personal Care Store 143,820 143,820 148,387 3.2%315Apparel Manufacturing 2,202 2,202 2,519 14.4%448Clothing and Accessories 730,903 730,903 754,407 3.2%pp g ,,,g ,,,316Leather and Allied Products 45 45 175 290.7%451Sporting Goods, Hobby, Books 116,615 116,615 126,042 8.1%321Wood Product Manufacturing 30,078 30,078 24,075 -20.0%452General Merchandise Stores 801,501 801,501 967,627 20.7%322Paper Manufacturing 10,842 10,842 11,026 1.7%453Miscellaneous Store Retailers 504,303 504,303 489,259 -3.0%323Printing and Related Support 43,243 43,243 38,511 -10.9%454Nonstore Retailers 234,807 234,807 235,923 0.5%324Petroleum and Coal Products 3,320 3,320 9,771 194.3%TOTAL RETAIL TRAD E 3,586,970 $ 3,586,970 $ 3,780,129 $ 5.4%325Chemical Manufacturing 8,684 8,684 7,937 -8.6%Overall Change from Previous Year 193,160 $ 326Plastics and Rubber Products 9,254 9,254 9,777 5.7%327Nonmetallic Mineral Products 19,031 19,031 16,218 -14.8%331Primary Metal Manufacturing 189 189 452 139.2%2010 Annual Total 2010 YTD 2011 YTD YTD 332Fabricated Metal Product Manuf 17,110 17,110 19,661 14.9%NAICS SERVICES (Nov '09-Oct '10)(Nov '09-Oct '10)(Nov '10-Oct '11)% Dif f 333Machinery Manufacturing 13,445 13,445 14,242 5.9%51*Information 978,115 978,115 481,043 -50.8%334Computer and Electronic Produc 12,773 12,773 16,776 31.3%52*Finance and Insurance 68,357 68,357 65,518 -4.2%335Electric Equipment, Appliances 192 192 780 305.9%53*Real Estate, Rental, Leasing 288,013 288,013 303,750 5.5%336Transportation Equipment Man 186,247 186,247 362,149 a 94.4%541Professional, Scientific, Tech 188,696 188,696 174,718 -7.4%337Furniture and Related Products 12,784 12,784 13,135 2.7%551Company Management 165 165 351 112.5%339Miscellaneous Manufacturing 27,899 27,899 25,531 -8.5%56*Admin. Supp., Remed Svcs 234,384 234,384 294,603 25.7%TOTAL MANUFACTURIN G 404,813 $ 404,813 $ 582,858 $ 44.0%611Educational Services 55,877 55,877 52,563 -5.9%Overall Change from Previous Year 178,045 $ 62*Health Care Social Assistannce 37,475 37,475 40,737 8.7%71*Arts and Entertainment 153,918 153,918 148,629 -3.4%72*AccomodationandFoodSvcs 806733 806733 838924 40%72*A ccomo d a ti on an d F oo d S vcs 806 ,733 806 ,733 838 ,924 4 .0%2010 Annual Total 2010 YTD 2011 YTD YTD 81*Other Services 385,105 385,105 389,241 1.1%NAICSTRANSPORTATION AND WAREHOUSIN G (Nov '09-Oct '10)(Nov '09-Oct '10)(Nov '10-Oct '11)% Dif f 92*Public Administration 109,678 109,678 92,163 -16.0%481Air Transportation - - 24 N/A TOTAL SERVICES 3,306,516 $ 3,306,516 $ 2,882,241 $ -12.8%482Rail Transportation 4,500 4,500 17,831 296.2%Overall Change from Previous Year (424,274)$ 484Truck Transportation 7,660 7,660 36,261 373.4%485Transit and Ground Passengers 57 57 68 20.4%488Transportation Support 13,207 13,207 18,083 36.9%2010 Annual Total 2010 YTD 2011 YTD YTD 491Postal Service 194 194 202 4.3%NAICS MISCELLANEOUS (Nov '09-Oct '10)(Nov '09-Oct '10)(Nov '10-Oct '11)% Dif f 492Couriers and Messengers 993 993 1,492 50.2%000Unknown 754 754 1,958 159.6%493Warehousing and Storage 2,574 2,574 3,121 21.3%111-115Agriculture, Forestry, Fishing 2,839 2,839 7,355 159.1%TOTAL TRANSPORTATIO N 29,185 $ 29,185 $ 77,083 $ 164.1%211-221Mining & Utilities22,364 22,364 21,830 -2.4%Overall Change from Previous Year 47,897 $ 999Unclassifiable Establishments 102,180 102,180 192,496 88.4%TOTAL SERVICES 128,138 $ 128,138 $ 223,639 $ 74.5%Overall Change from Previous Year 95,501 $ 2010 Annual Total 2010 YTD 2011 YTD YTD NAICS WHOLESALE TRADE (Nov '09-Oct '10)(Nov '09-Oct '10)(Nov '10-Oct '11)% Dif f 423Wholesale Trade, Durable Goods 1,020,802 1,020,802 1,095,905 7.4%GRAND TOTA L 12,522,789 $ 12,522,789 $ 12,887,267 $ 424Wholesale Trade, Nondurable 160,317 160,317 150,480 -6.1%Overall Change from Previous Year 364,479 $ 2.9%425Wholesale Electronic Markets 4 ,320 4 ,320 13 ,698 217.1%425 Wholesale Electronic Markets 4 ,320 4 ,320 13 ,698 217 .1%TOTAL WHOLESALE 1,185,440 $ 1,185,440 $ 1,260,083 $ 6.3%Overall Change from Previous Year 74,643 $ 02/06/12 file:Monthly Sales Tax Report.xls Prepared by Auburn Financial Planning 21
Investment PurchasePurchaseMaturityYield to Type Date Price DateMaturity State Investment PoolVarious 82,090,242 $ Various 0.13%KeyBank Money MarketVarious 6,767,383Various 0.15%US Treasury 05/04/1990 57,75005/15/20165.72%FHLB 3/28/20112,000,0003/28/20141.300%FFCB 6/6/20112,000,0006/6/20141.180%FHLB 6/13/20112,000,0006/13/20141.150%FHLMC 12/19/20112,000,00012/19/20141.000%FNMA 12/29/20112,000,00012/29/20140.900% Total Cash & Investments 98,915,375 $ 0.234%Investment Mix% of Total State Investment Pool 83.0%Current 6-month treasury rate0.05%KeyBank Money Market 6.8%Current State Pool rate0.13%US Treasury 0.1%KeyBank Money Market0.15%FHLB 4.0%Blended Auburn rate0.23%FFCB 2.0%FHLMC 2.0%FNMA 2.0%100.0%City of Auburn Investment Portfolio Summary December 31, 2011 Summary 22