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Home My WebLink About05-26-2015 CITY COUNCIL STUDY SESSION AGENDACity Council Study Session May 26, 2015 - 5:30 PM A cmyor Auburn City Hall AGENDA Watch the meeting LIVE! . 'Bu-R-N- WASH I NGIUN Watch the meeting video M eeti ng vi deos are not avai I abl e unti 172 hours after the meeti ng has cond uded. CALL TO ORDER A. Roll Call II. ANNOUNCEMENTS, REPORTS, AND PRESENTATIONS III. AGENDA ITEMS FOR COUNCIL DISCUSSION A. 1st Quarter 2015 Financial Report - 15 Minute Presentation /5 Minute Q &A* (Coleman) B. Workers Comp and Liability Assessment - 20 Minute Presentation /10 Minute Q &A* (Roscoe) IV. OTHER DISCUSSION ITEMS V. ADJOURNMENT Agendas and minutes are available to the public at the City Clerk's Office, on the City website (htto11www.auburnwa.gov), and via e -mail. Complete agenda packets are available for review at the City Clerk's Office. *Denotes attachments included in the agenda packet. Page 1 of 39 AtAuRN 'i`Y F WASHINGIUN AGENDA BILL APPROVAL FORM Agenda Subject: 1 st Quarter 2015 Financial Report - 15 Minute Presentation /5 Minute Q &A Department: Finance Attachments: Quarterly Financial Report Administrative Recommendation: For discussion only. Background Summary: Date: May 20, 2015 Budget Impact: $0 The purpose of the quarterly financial report is to summarize for the City Council the general state of Citywide financial affairs and to highlight significant items or trends that the City Council should be aware of. The following provides a high level summary of the City's financial performance; further details can be found within the attached financial report. The first quarter status report is based on financial data available as of April 27, 2015 for the period ending March 31, 2015. Sales tax information represents business activity that occurred through January 2015. General Fund: The General Fund is the City's largest fund and accounts for the majority of City resources and services, other than those required by statute to be accounted for in another fund. Through March 2015, General Fund revenues totaled $11.5 million and exceeded the year -to -date budget of $11.1 million due primarily to increased revenues from sales tax collections and development services fees. Retail sales tax collections through the first quarter of 2015 exceed budget by $217,000 or 6.4 %, and exceed revenues collected for the same period last year by 2.6 %. In addition, development services fees collected through the first quarter of 2015 exceed budget expectations by $193,000, and represents a 47.1 % increase over the same period the year prior. The year- over -year increase was primarily due to the plan check revenues collected for the Promenade Apartment Project that will be located in the Lea Hill area. DI.A AUBURN * MORE THAN YOU IMAGINED Page 2 of 39 General Fund expenditures through March 2015 totaled $13.3 million, compared to $12.8 million spent the same period last year. The majority of the increases in year - over -year expenditures were seen in the Police Department. The increased expenditures within the Police Department were primarily in salary and benefit expenditures, as well as the charges paid to Valley Communications for 911 services. Overall, departmental spending through Q1 -2015 was 7.6 %, or $1.1 million, under budget due to several factors including the timing of project implementation, underspending in contingency funds, and continued vigilance in monitoring general spending. Year -to -date, 1,279 pet licenses have been sold resulting in $36,980 in revenue. For the same period in 2014, 1,684 licenses were sold resulting in $38,615 in revenue. Enterprise Funds: The City's seven enterprise funds account for operations with revenues primarily provided from user fees, charges or contracts for services. At the end of the first quarter, the Water fund had a net operating loss of $4,500 compared to net income of $153,100 in 2014. The Sewer fund ended the quarter with a net loss of $23,200 compared to a loss of $58,300 in 2014. The Sewer -Metro Utility ended the period with an operating loss of $214,700 compared to a loss of $57,600 in the previous year. Lastly, the Stormwater Utility ended the quarter with operating income of $422,300 which compares to operating income of $731,200 in 2014. The Cemetery ended the first quarter with net operating income of $109,500 compared to operating income of $42,300 in 2014. Internal Service Funds: Internal Service Funds provide services to other City departments and include functions such as Insurance, Worker's Compensation, Facilities, Innovation and Technology, and Equipment Rental. All funds have sufficient revenues to cover year- to -date expenditures. Investment Portfolio: The City's total cash and investments at the end of Q1 -2015 was $118.3 million, and compares to $120.5 million at the end of Q4 -2014. Reviewed by Council Committees: Councilmember: Staff: Coleman Meeting Date: May 26, 2015 Item Number: DI.A DI.A AUBURN * MORE THAN YOU IMAGINED Page 3 of 39 DLA AUBURN * MORE THAN YOU IMAGINED Page 4 of 39 Quarterly Financial Report $10 $9 $8 $7 $6 $5 c $4 $3 $2 $1 $0 $16 $14 $12 $10 o $8 $6 $4 $2 $0 GENERAL FUND SUMMARY YEAR -TO -DATE GENERAL FUND REVENUES AND EXPENSES (through Q1 2015) Total Total Revenues Expenses ■ YTD ■ YTD ■ YTD Budget Actuals Actuals (Favorable) (Unfavorable) c 2 v N u N N N C N v ci E N uy0 v io v C s v v c u v io t E H v a O n u 75 O O 0 2 p vvi a ai l7 C $4 ■ Reve n ues YTD Actuals ■ Y E; YEAR -TO -DATE GENERAL FUND EXPENSES BY DEPARTMENT (through Q1 2015) (Favorable) $6 $5 $4 ■ YTD Budget YTD Actuals ■ Y A (Favorable) (I $3 $2 $1 $0 — o 0 > u ++ co v -E tiD l0j 2 v u N - E O LL = £ � a a E E o E u = O �u w N Through Q1 2015 � N c � v E a E w > v m t v O C nses K u i p _ N 0 .E E Q j Q N >V N £ oa a u v in o f >' E > N l0 K Z N U U DI.A 1 Page 5 of 39 Quarterly Financial Report Through Q1 2015 General Fund 2015 2014 2015 YTD Budget vs. Actual Annual Favorable (Unfavorable) Summary of Sources and Uses Budget YTD Budget YTD Actual YTD Actual Amount Percentage Operating Revenues Property Tax $ 16,708,900 $ 836,400 $ 783,959 $ 889,756 $ (52,441) (6.3) % Sales Tax 13,662,000 3,410,400 3,627,140 3,533,696 216,740 6.4 % Sales Tax - Annexation Credit 1,856,000 457,800 487,969 467,105 30,169 6.6 % Criminal Justice Sales Tax 1,589,000 395,100 444,625 411,139 49,525 12.5 % Brokered Natural Gas Tax 282,000 97,800 83,760 92,221 (14,040) (14.4) % City Utilities Tax 3,452,300 857,900 830,856 830,310 (27,044) (3.2) % Admissions Tax 330,300 62,200 64,119 59,685 1,919 3.1 % Electric Tax 3,435,600 847,100 777,771 871,122 (69,329) (8.2) % Natural Gas Tax 1,152,000 292,800 263,620 309,852 (29,180) (10.0) % Cable TV Franchise Fee 888,900 221,700 226,595 220,649 4,895 2.2 % Cable TV Franchise Fee - Capital 63,000 18,000 18,071 15,720 71 0.4 % Telephone Tax 1,811,000 468,900 476,329 532,622 7,429 1.6 % Garbage Tax (external) 106,000 26,490 27,110 26,414 620 2.3 % Leasehold Excise Tax 33,000 5,500 10,536 9,270 5,036 91.6 % Gambling Excise Tax 232,400 60,600 70,728 73,243 10 828 16_7 % Taxes subtotal $ 45,602,400 $ 8,058,690 $ 8,193,187 $ 8,342,805 $ 134,497 1.7 % Business License Fees $ 219,000 $ 83,200 $ 115,833 $ 72,322 $ 32,633 39.2 % Building Permits 1,100,000 346,300 327,641 374,921 (18,659) (5.4) % Other Licenses & Permits 532,300 111,100 131,375 138,601 20,275 18.2 % Intergovernmental (Grants, etc.) 5,262,430 1,164,393 1,213,123 1,136,229 48,731 4.2 % Charges for Services: General Government Services 96,500 26,200 23,767 28,101 (2,433) (9.3) % Public Safety 515,100 168,657 165,721 8,203 (2,936) (1.7) % Development Services Fees 680,000 162,100 355,121 241,389 193,021 119.1 % Culture and Recreation 2,081,280 349,700 400,152 363,225 50,452 14.4 % Fines and Forfeits 1,388,040 392,100 250,099 384,831 14( 2,001) 6 3( .2) % Fees /Charges /Fines subtotal $ 11,874,650 $ 2,803,750 $ 2,982,831 $ 2,747,820 $ 179,081 6.4 % Interests and Other Earnings $ 36,850 $ 8,500 $ 10,150 $ 8,391 $ 1,650 19.4 % Rents, Leases and Concessions 550,000 116,300 98,285 168,001 (18,015) (15.5) % Contributions and Donations 32,000 4,400 7,158 8,773 2,758 62.7 % Other Miscellaneous 107,400 22,300 43,095 31,831 20,795 93.3 % Transfers In 539,380 76,000 76,000 91,000 0 0.0 % Insurance Recoveries - Capital & Operating 25,000 66,300 58,487 11532 52,187 828.4 % Other Revenues subtotal $ 1,290,630 $ 233,800 $ 293,176 $ 319,528 $ 59,376 25.4 % Total Operating Revenues $ 58,767,680 $ 11,096,240 $ 11,469,194 $ 11,410,153 $ 372,954 $ 915,017 Operating Expenditures Council & Mayor $ 243,800 $ 232,012 $ 220,084 $ 11,788 4.8 % Administration 1,253,403 313,500 182,908 154,511 130,592 41.7% Community & Human Services 878,323 213,200 160,056 194,025 53,144 24.9 Municipal Court & Probation 1,935,710 202,800 114,007 43,390 88,793 43.8 % Human Resources 1,137,785 267,900 246,012 306,801 21,888 8.2 % Finance 1,379,406 335,400 297,749 276,766 37,651 11.2 % City Attorney 2,202,159 504,600 455,501 408,856 49,099 9.7 % Community Development 4,311,536 1,137,200 1,018,198 1,036,784 119,002 10.5 % Jail - SCORE 3,670,000 917,500 914,716 974,474 2,784 0.3 % Police 23,423,110 5,711,400 5,540,500 5,001,630 170,900 3.0% Public Works 2,641,027 658,800 653,336 724,228 5,464 0.8 % Parks, Arts & Recreation 10,992,413 2,497,900 2,464,694 2,170,790 33,206 1.3 % Streets 3,365,676 766,000 558,209 769,106 207,791 27.1 % Non - Departmental 4,707,695 607,537 442,453 568,037 165,083 27.2 % Total Operating Expenditures 1 $ 62,813,261 1 $ 14,377,537 1 $ 13,280,351 $ 12,849,482 $ 1,097,185 7.6 % DLA 2 Page 6 of 39 Quarterly Financial Report Through Q1 2015 Overview This financial overview reflects the City's overall financial position for the fiscal period ending March 31, 2015 and represents financial data available as of April 27, 2015. The budgeted revenues and operating expenditures are primarily based on the collection /disbursement average for the same period of the two prior years. Through the first quarter of 2015, General Fund revenues totaled $11.5 million compared to budget of $11.1 million and were $59,000 more than the revenues collected during the same period the year prior. Some notable variances to budget this quarter include: • Sales tax revenues totaled $3.6 million and were $217,000 higher than budget — with increased sales activity seen in the automotive and retail sales categories. • Development services fees totaled $355,000 and exceeded budget by $193,000. The increased revenues were attributable to plan check revenues — predominately collected for the Promenade Apartment Project that will be located in the Lea Hill area. • Culture and recreation revenues exceed year -to -date budget by $50,000 or 14.4 %, primarily due to increased revenues collected at the Auburn Golf Course for greens fees this quarter compared to same period last year. • Fines and forfeits ended the quarter at $250,000 compared to budget of $392,000 and $385,000 collected the same period the year prior. The contributing factor in the year- over -year decline in revenues was due to the elimination of the Redflex Photo Enforcement program. The Q2 -2015 Financial Report will reflect the anticipated reduction in Redflex revenues - as approved by Council in April 2015. General Fund expenditures for the first quarter totaled $13.3 million and compares to $12.8 million spent the same period last year. The majority of the increases in year- over -year expenditures were seen in the Police Department. The increased expenditures within the Police Department were primarily seen in salary and benefit expenditures, as well as the charges paid to Valley Communications for 911 services. Overall, departmental spending through Q1 -2015 was 7.6 %, or $1.1 million, under budget due to several factors including the timing of project implementation, underspending in contingency funds, and continued vigilance in monitoring general spending. General Fund 2015 Revenues vs. Expenditures $13.3 M Expenditures $14.4 M $11.5 M ❑ 2015 Actual Revenues ❑ 2015 Budget $11.1 M $ Millions $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 DI.A 3 Page 7 of 39 Quarterly Financial Report Through Q1 2015 Revenues The combined total of property tax, sales /use tax, utility tax, gambling, and admissions tax provides approximately 80% of all resources supporting general governmental activities. The following section provides additional information on these sources. Property Tax collections through Q1 -2015 totaled $784,000, compared to budget of $836,000. The majority of property tax revenues are collected during the months of April and October, coinciding with the due dates for the County property tax billings. Property Taxes $18.0 2015 budget $16.0 2015 actual to date $14.0 - - -- "2014 actual $12.0 $10.0 0 g $8.0 .- - -- - -- i $6.0 i i i $4.0 ; i $2.0 i 1 $0.0 Jan Feb Mar Apr May Jun i i i i i i i i' a Jul Aug Sep Oct Nov Dec DI.A 4 Page 8 of 39 Quarterly Financial Report Through Q1 2015 Sales tax distributions Citywide totaled $4.1 million of which $3.6 million was distributed to the General Fund and $519,000 was distributed to the Local Street Fund (SOS) program.* Through March 2015, total Sales Tax revenue collections in the General Fund exceeded budget expectations by $217,000, or 6.4 %. c 0 Sales & Use Tax $14.0 (Net of Revenue from Construction) 2015 budget $12.0 —A-2015 actual to date - - -- -2014 actual $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec * Beginning in 2013, Local Street Fund (Fund 103) street repairs have been funded from sales taxes on construction. The total amount transferred year -to -date through Q1 -2015 was $518,935. The graphic above presents sales taxes under the current policy. The following table breaks out the City's base sales tax, excluding Criminal Justice, Annexation Credit and Streamlined Sales Tax Mitigation, by major business sector. Comparison of Sales Tax Collections by SIC Group March -2015 Component Group 2014 Actual 2015 Actual Change from 2014 Amount Percentage Construction $ 463,259 $ 518,935 $ 55,676 12.0 Manufacturing 349,574 206,323 (143,251) (41.0) % Transportation & Warehousing 11,165 16,160 4,996 44.7 Wholesale Trade 282,129 285,979 3,851 1.4% Automotive 765,193 859,381 94,188 12.3 % Retail Trade 1,287,328 1,364,184 76,856 6.0 Services 834,434 905,073 70,638 8.5 % Miscellaneous 38,599 23,358 (15,241) (39.5) % YTD Total $ 4,031,681 $ 4,179,393 $ 147,713 3.7 DI.A 5 Page 9 of 39 Quarterly Financial Report Through Q1 2015 Total sales tax revenue collected through the first quarter of 2015 exceed prior year collections by $93,000 or 2.6 %. The business sectors showing the largest increase in revenues compared to the same period last year were in the automotive industry and retail trade. Total sales tax revenue on construction, which is transferred to the Local Street Fund (Fund 103) for local street repair and maintenance, totaled $519,000 and exceeded both budget and prior year collections by $145,000 and $56,000 respectively. Sales Tax ®n Constructi ®n Transfer $1.8 2015 budget �A�2015 actual $1.6 , - - - -- 2014 actual $1.4 $1.2 $1.0 o ' $0.8 $0.6 $0.4 f $0.2 $0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 6 Page 10 of 39 Quarterly Financial Report Through Q1 2015 Utility Taxes consist of interfund taxes on City utilities (Water, Sewer, Storm and Solid Waste) and taxes on external utilities (Electric, Natural Gas, Telephone and Solid Waste). Utility taxes collected through the first quarter of 2015 totaled $2.4 million, compared to budget of $2.5 million. Utility Tax $12.0 2015 budget —A-2015 actual to date $10.0 - - -- -2014 actual $8.0 o $ 6.0 $4.0 $2.0 $ 0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec As shown in the table below, overall utility tax revenues collected year -to -date were $2.4 million, resulting in underperformance to budget of $118,000, or 4.7 %. A mild winter has reduced customer heating demands and resulted in year- over -year declines in electric and natural gas revenue collections. DI.A 7 Page 11 of 39 Utility Tax by Type March -2015 Utility Tax Type 2014 Actual 2015 Budget 2015 Actual 2015 vs. 2014 Actual 2015 vs. Budget Amount Percentage Amount Percentage City Interfund Utility Taxes $ 830,310 $ 857,900 $ 830,856 $ 546 0.1 % $ (27,044) (3.2) % Electric 871,122 847,100 777,771 (93,351) (10.7) % (69,329) (8.2) % Natural Gas 309,852 292,800 263,620 (46,233) (14.9) % (29,180) (10.0) % Telephone 532,622 468,900 476,329 (56,292) (10.6) % 7,429 1.6 % Solid Waste (external) 26,414 26,490 27,110 696 2.6 % 620 2.3 % YTD Total $ 2,570,320 $ 2,493,190 $ 2,375,686 $ (194,634) (7.6) % $ (117,504) (4.7) % DI.A 7 Page 11 of 39 Quarterly Financial Report Through Q1 2015 Cable TV Franchise Fees, which are collected quarterly, totaled $227,000 and exceeded budget by $5,000 or 2.2 %. $900 $800 $700 $600 $500 r $400 I- $300 $200 $100 $0 Cable TV Franchise Fee 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter DI.A 8 Page 12 of 39 Quarterly Financial Report Through Q1 2015 licenses and Permits include business licenses, building permits, plumbing, electric and other licenses and permit fees. Building permit fees and business licenses make up 80% of the annual budgeted revenue in this category. Total building permit revenues collected through March totaled $328,000 and compare to a year -to -date budget of $346,000. Building permits issued through March total 190 and compare to 209 issued during the same period in 2014. Major projects contributing to revenues this quarter include several commercial and residential permits as well as numerous housing developments — most notably Edgeview, MainVue and Alicia Glenn. Building Permits $1.6 2015 budget $1.4 —A-2015 actual to date - - - -- 2014 actual $1.2 $1.0 c $0.8 $0.6 $0.4 $0.2 .i ♦� I $0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 9 Page 13 of 39 Quarterly Financial Report Through Q1 2015 Business license revenues collected through March totaled $116,000, and compare to $72,000 collected the same period in 2014; the difference is due to the timing of collections. The graphic below reflects the timing of payments by business owners, where the majority of business license payments are collected during the first two months of the year and the last month of the year. Business Licenses $240 $220 2015 budget $200 —A-2015 actual to date $180 - - -- -2014 actual i $160 i $140 ; i $120 ------------- - ® / -- $100 ---- $60 $40 $20 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DLA 10 Page 14 of 39 Quarterly Financial Report Through Q1 2015 Intergovernmental revenues include Grants (Direct & Indirect Federal, State and Local), compact revenue from the Muckleshoot Indian Tribe (MIT), intergovernmental and state shared revenues. Collections to date totaled $1.2 million and were $49,000, or 4.2% higher than budget. Intergovernmental March -2015 Revenue 2014 Actual 2015 2015 Budget Actual 2015 vs. 2014 Actual 2015 vs. Budget Amount % Change Amount % Change Federal Grants $ $ - $ 7,672 $ 7,672 N/A $ 7,672 N/A State Grants 8,269 21,300 30,883 22,615 273.5 % 9,583 45.0 % Interlocal Grants 0 0 0 0 0.0 % 0 N/A Muckleshoot Casino Emerg. 127,433 157,500 158,617 31,184 24.5 % 1,117 0.7 % Intergovernmental Service 23,351 0 5,231 (18,120) (77.6) % 5,231 N/A State Shared Revenues: Streamlined Sales Tax 496,027 505,600 490,179 (5,848) (1.2) % (15,421) (3.1) % Motor Vehicle Fuel Tax 244,961 224,900 245,573 612 0.2 % 20,673 9.2 % Criminal Justice - High Crime 0 48,000 48,266 48,266 N/A 266 0.6 % Criminal Justice - Population 4,558 4,300 4,872 313 6.9 % 572 13.3 % Criminal Justice - Special Prog. 16,870 16,400 17,899 1,028 6.1 % 1,499 9.1 % State DUI 3,398 3,400 3,280 (118) (3.5) % (120) (3.5) % Liquor Excise 48,539 25,408 37,124 (11,414) (23.5) % 11,717 46.1 % Liquor Profit 162,823 157,585 163,528 705 0.4% 5,943 3.8 % Total State Shared 977,176 985,593 1,010,720 33,544 3.4% 25,127 2.5 % YTD Total $ 1,136,229 $ 1,164,393 $ 1,213,123 $ 76,895 6.8 % $ 48,731 4.2 % DI.A 11 Page 15 of 39 Quarterly Financial Report Through Q1 2015 Charges for Services consist of general governmental services, public safety, development service fees and cultural & recreation fees. Overall, charges for services collected through the first quarter of 2015 totaled $945,000 and compare to a year -to -date budget of $707,000. Total revenues collected exceeded budget by $238,000, or 33.7 %. General governmental revenues through Q1 -2015 total $24,000 compared to a budget of $26,000. Public safety revenues collected year -to -date totaled $166,000 and compare to a budget of $169,000. Public safety revenues consist of revenues generated for Police Officer extra duty overtime, where officers are contracted for services and reimbursement is made by the hiring contractor. Effective June 2014, public safety revenue also includes reimbursement from the Muckleshoot Indian Tribe (MIT) for a full -time dedicated Police Officer and associated expenditures. Effective in the second quarter of 2014, the expenditures for Police Officer extra duty overtime are no longer netted against the revenues for this service. These two factors explain the year- over -year increase in public safety revenues collected between Q1 -2014 and Q1- 2015. Development services fee collections, which primarily consist of plan check fees, totaled $355,000 and exceeded budget by $193,000. Total plan check fees collected this quarter totaled $307,000 and includes revenues related to several commercial and residential projects including the Promenade Apartment project on Lea Hill, as well as plans for the Edgeview and Sonata Hill housing developments. $1.2 Development Service Fees 2015 budget —A-2015 actual to date , - - - -- 2014 actual $0.8 ' o $0.6 = i $0.4 $0.2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 12 Page 16 of 39 Quarterly Financial Report Through Q1 2015 Culture and recreation revenues exceeded budget by $50,000, reflecting increased sales at the Auburn Golf Course for green fees. II , $2.4 $2.2 $2.0 $1.8 $1.6 $1.4 $1.2 $1.0 $0.8 $0.6 $0.4 $0.2 $0.0 Culture & Recreation 2015 budget —A-2015 actual to date - - - -- 2014 actual Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 13 Page 17 of 39 Charges for Services by Type March -2015 Revenue 2014 Actual 2015 Budget 2015 Actual 1 2015 vs. 2014 Actual 1 2015 vs. Budget I Amount Percentagel Amount Percentage General Government $ 28,101 $ 26,200 $ 23,767 $ (4,334) (15.4) % $ (2,433) (9.3) % Public Safety 8,203 168,657 165,721 157,518 1,920.2 % (2,936) (1.7) % Development Services 241,389 162,100 355,121 113,732 47.1 % 193,021 119.1 % Culture & Recreation 363,225 349,700 400,152 36,927 10.2 % 50,452 14.4 P= $ 640,918 $ 706,657 $ 944,760 1 $ 303,842 1 47.40/ol $238,103 33.7 % DI.A 13 Page 17 of 39 Quarterly Financial Report Through Q1 2015 Fines & Penalties include traffic and parking infraction penalties, Redflex photo enforcement violations, criminal fines (including criminal traffic, criminal non traffic and criminal costs) as well as non -court fines such as false alarm fines. Total revenue collected through Q1 -2015 totaled $250,000, compared to prior year collections of $385,000. Effective June 2014, the Redflex Photo Enforcement Program was cancelled. This is the contributing factor that explains the year - over -year decline in fines and forfeit revenue. Effective in the Q2 -2015 financial reporting, the budget for Redflex Photo Enforcement will be eliminated - consistent with Council approved Budget Amendment #1 which was approved in April 2015. $1.4 $1.2 $1.0 $0.8 c $0.6 $0.4 $0.2 $0.0 Fines & Penalties 2015 budget -A-2015 actual to date - - -- -2014 actual Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 14 Page 18 of 39 Fines & Forfeits by Type March -2015 Month 2014 Actual 2015 Budget 2015 Actual 2015 vs. 2014 Actual 2015 vs. Budget Amount Percentage Amount Percentage Civil Penalties $ 4,341 $ 3,300 $ 3,037 $ (1,304) (30.0) % $ (263) (8.0) Civil Infraction Penalties 127,636 117,700 138,883 11,247 8.8 % 21,183 18.0 Redflex Photo Enforcement 165,322 191,800 1,541 (163,781) (99.1) % (190,259) (99.2) Parking Infractions 26,833 25,300 33,194 6,361 23.7 % 7,894 31.2 Criminal Traffic Misdemeanor 12,670 13,400 16,386 3,717 29.3 % 2,986 22.3 Criminal Non - Traffic Fines 12,087 12,500 13,335 1,248 10.3 % 835 6.7 Criminal Costs 12,473 9,900 16,130 3,656 29.3 % 6,230 62.9 Non -Court Fines & Penalties 23,468 18,200 27,592 4,125 17.6 %1 9,392 51.6 YTD Total $ 384,831 $ 392,100 $ 250,099 $ (134,732) (35.0) % $ (142,001) $1.4 $1.2 $1.0 $0.8 c $0.6 $0.4 $0.2 $0.0 Fines & Penalties 2015 budget -A-2015 actual to date - - -- -2014 actual Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 14 Page 18 of 39 Quarterly Financial Report Through Q1 2015 Miscellaneous revenues primarily consist of income from facility rentals; other sources within this category include investment earnings, contributions & donations and other miscellaneous income. Total revenues collected in this category through March totaled $159,000 and exceeded a budget expectation of $152,000. Although rents and leases revenue ended the quarter below budget expectations, this was offset by increased revenues collected for P -Card rebate monies in Q1. DI.A 15 Page 19 of 39 Miscellaneous Revenues by Type March -2015 Month 2014 Actual 2015 Budget 2015 ,actual 2015 vs. 2014 2015 vs. Budget Amount Percentage Amount Percentage Interest & Investments $ 8,391 $ 8,500 $ 10,150 $ 1,759 21.0 % $ 1,650 19.4 Rents & Leases 168,001 116,300 98,285 (69,716) (41.5) % (18,015) (15.5) Contributions & Donations 8,773 4,400 7,158 (1,615) (18.4) % 2,758 62.7 Other Miscellaneous Revenue 31,831 22,300 43,095 11,264 35.4% 20,795 93.3 YTD Total $ 216,997 $ 151,500 $ 158,689 $ (58,308) (26.9) % $ 7,189 4.7 DI.A 15 Page 19 of 39 Quarterly Financial Report Through Q1 2015 Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects Fund and is used for governmental capital projects. REET revenues collected through Q1 -2015 totaled $1.6 million, compared to a budget expectation of $276,000. The spike in revenue reflected in the graphic below represents the sale of several large businesses the City including the sale of Safeway, the Outlet Collection - Seattle, and Lakeland Town Center. Real Estate Excise Tax $2.6 $2.4 2015 budget $2.2 -A-2015 actual to date $2.0 - - -- -2014 actual $1.8 c $1.4 ' $1.0 ' $0.8 $0.6 $0.4 $0.2 $0.0 I� Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 16 Page 20 of 39 Real Estate Excise Tax Revenues March -2015 Month 2014 Actual 2015 Budget 2015 Actual 2015 vs. 2014 2015 vs. Budget Amount Percentage Amount Percentage Jan $ 119,765 $ 79,300 $ 125,089 $ 5,324 4.4 % $ 45,789 57.7 % Feb 208,206 107,300 115,287 (92,919) (44.6) % 7,987 7.4 % Mar 118,578 89,000 1,394,226 1,275,648 1075.8 % 1,305,226 1466.5 % Apr 189,771 106,800 (189,771) (100.0) % (106,800) (100.0) % May 243,472 138,100 (243,472) (100.0) % (138,100) (100.0) % Jun 236,067 140,500 (236,067) (100.0) % (140,500) (100.0) % Jul 305,214 194,800 (305,214) (100.0) % (194,800) (100.0) % Aug 263,573 157,800 (263,573) (100.0) % (157,800) (100.0) % Sep 182,829 124,500 (182,829) (100.0) % (124,500) (100.0) % Oct 163,912 144,600 (163,912) (100.0) % (144,600) (100.0) % Nov 259,026 185,900 (259,026) (100.0) % (185,900) (100.0) % Dec 183,799 131,400 (183,799) (100.0) % (131,400) (100.0) % YTD Total $ 446,549 $ 275,600 $ 1,634,602 $ 1,188,053 266.1 % $1,359,002 493.1 % Real Estate Excise Tax $2.6 $2.4 2015 budget $2.2 -A-2015 actual to date $2.0 - - -- -2014 actual $1.8 c $1.4 ' $1.0 ' $0.8 $0.6 $0.4 $0.2 $0.0 I� Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 16 Page 20 of 39 Quarterly Financial Report Pet Licensing Through Ql 2015 Year -to -date, 1,279 pet licenses have been sold resulting in $36,980 in revenue. For the same period in 2014, 1,684 licenses were sold resulting in $38,615 in revenue. Pet Licenses Issued By Month 2015 vs 2014 900 800 700 s 600 v a• � 500 i � 400 E 300 a Z 200 100 0 c T c -`0 LL Q 2 -,, -�+ Month 2015 Budget Goal: $240,000 or more 2015 Revenue = $36,980 2014 Revenue = $38,615 2015 Licenses Sold = 1,279 2014 Licenses Sold = 1,684 $14,000 $12,000 $10,000 v a c > $8,000 v $6,000 V $4,000 $2,000 $0 Q v O o a z Pet Licensing Revenue By Month 2015 Month t 2015 Licenses Issued -- -- 2014 Licenses Issued 2015 License Revenue DLA 17 Page 21 of 39 Quarterly Financial Report $250,000 $200,000 $150,000 v c J $100,000 $50,000 $0 Cumulative Pet Licensing Revenue & Licenses Issued 2 015 vs 2 014 C >, w D. > v � ° i 4 4 n O Z Month Through Q1 2 015 12,000 � 2015 License Revenue (L) ...... 2015 License Revenue (L) 10,000 (Budget Goal: $240,000) t 2015 Licenses Issued (R) V 8,000 w --►— 2014 Licenses Issued (R) c 6,000 E 4,000 2,000 J DLA 18 Page 22 of 39 Quarterly Financial Report Enterprise Funds Through Q1 2015 Detailed Working Capital and Fund Balance statements for Enterprise and Internal Service funds can be found in the Appendix at the end of this report. At the end of the first quarter, the Water Utility had a net operating loss of $4,500 compared to operating income of $153,100 in 2014. $1,600 $1,400 $1,200 $1,000 $800 I- $600 $400 $200 $0 Water Revenues vs Water Sold 2015 vs 2014 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 300,000 u v 200,000 100,000 0 2014 Water Sales ($) 2015 Water Sales ($) 2014 Water Sold (ccf) 2015 Water Sold (ccf) The Sewer Utility ended the quarter with an operating loss of $23,200 compared to an operating loss of $58,300 in 2014. The Sewer -Metro Utility ended the period with an operating loss of $214,700 compared to a loss of $57,600 for the previous year. The Stormwater Utility ended the quarter with $422,300 in net operating income which compares to operating income of $731,200 for the same period last year. DLA 19 Page 23 of 39 Quarterly Financial Report Through Q1 2015 The Cemetery Fund ended the first quarter with operating income of $109,500 compared to operating income of $42,300 for the same period last year. During the first quarter of 2015, the number of interments at the Cemetery totaled 61 (32 burials, 29 cremations) which compares to 61 (31 burials, 30 cremations) for the same period last year. Cemetery Operating Revenues & Expenditures By Month 2015 vs 2014 $160 2015 Bud. Revenue $140 +2015 Act. Revenue $120 ...... 2014 Act. Revenue $100 12015 Act. Expenses .6 o $80 0 ~ $60 $40 $20 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cumulative Cemetery Revenues & Expenditures 2015 vs 2014 $1,200 2015 Bud. Revenue +2015 Act. Revenue $1,000 ...... 2014 Act. Revenue v $800 12015 Act. Expenses c F 0 $600 $400 $200 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 20 Page 24 of 39 Quarterly Financial Report Through Q1 2015 Internal Service Funds Operating expenditures within the Insurance Fund represent the premium cost pool that will be allocated monthly to other City funds over the course of 2015. As a result, this balance will gradually diminish each month throughout the year. No significant variances are reported in the Worker's Compensation, Facilities, Innovation & Technology, or Equipment Rental Funds. All funds have sufficient revenues to cover year -to -date expenditures. Contact Information This report is prepared by the Finance Department. Additional financial information can also be viewed at our website: http: / /www.auburnwa.gov /. For any questions about this report please contact Shelley Coleman at scoleman(a,)auburnwa.gov. DLA 21 Page 25 of 39 City of Auburn Investment Portfolio Summary March 31, 2015 Investment Purchase Purchase Maturity Yield to Type Date Price Date Maturity State Investment Pool Various $ 102,031,795 Various 0.16% KeyBank Money Market Various 9,607,137 Various 0.00% US Treasury 05/04/1990 57,750 05/15/2016 5.72% FFCB 4/11/2013 3,000,000 4/11/2016 0.43% FHLB 1/15/2015 1,300,000 7/28/2017 0.89% FHLB 1/19/2014 2,047,200 11/19/2018 1.98% LAKUTL 9/25/2013 235,919 11/1/2017 1.90% Total Cash & Investments $ 118,279,801 0.198% Investment Mix % of Total Summary State Investment Pool 86.3% Current 6 -month treasury rate 0.11% KeyBank Money Market 8.1% Current State Pool rate 0.16% US Treasury 0.0% KeyBank Money Market 0.00% FFCB 2.5% Blended Auburn rate 0.20% FHLB 2.8% LAKUTL 0.2% 100.0% DI.A 22 Page 26 of 39 237 Heavy and Civil Construction 146,261 45,976 37,474: -185% 447 Gasoline Stations 246,636 66,822 57,7961 -13 5% 238 Specialty Trade Contractors 741,211 199,603 166,208; -167% TOTAL AUTOMOTIVE 3,309,404 765,193 859,381: 12.3% TOTAL CONSTRUCTION 1,753,532 463,259 : 518,935; 92. ®% Overall Change from Previous Year 94 f88i Overall Change from Previous Year : ...._55616: 2014 Annual Total ...........° 2014 • ... .......................... °...: 2015 AOL ` • ,1,303 ' . • 442 Furniture and Home Furnishings 254,103 64,377 67,674: ? 51% 311 Food Manufacturing 3,220 744: -429% 443 Electronics and Appliances 236,955 109,048 63,945: -41 4% 312 Beverage and Tobacco Products 8,257 2,072 2,586: 24 9% 444 Building Material and Garden 502,470 94,483 119,230: 262% 313 Textile Mills 234 104 57' -456% 445 Food and Beverage Stores 352,552 85,363 88,168' 33% 314 Textile Product Mills 2,970 950 831: -125% 446 Health and Personal Care Store 187,715 50,584 60,307: f 192% 315 Apparel Manufacturing 244 129 i 74: -428% 448 Clothing and Accessories 1,008,978 283,391 300,270: 60% 316 Leather and Allied Products 15 3 -1. -1305% 451 Sporting Goods, Hobby, Books 212,015 70,146 64,815. -76% 321 Wood Product Manufacturing 76,560 20,433 15,004i 452 General Merchandise Stores 955,479 a 296,473 303,638i 322 Paper Manufacturing 5,237 1,628 1,771' % 88% 453 Miscellaneous Store Retailers 587,784 142,520 188,794' 325% 323 Printing and Related Support 44,114 9,294 15,187; 634% 454 Nonstore Retailers 381,876 90,942 107,343: 180% 324 Petroleum and Coal Products 10,293 2,860 1,253? -562% TOTAL RETAIL TRADE 4,679,929 1,287,328 1,364,184' 325 Chemical Manufacturing 5,397 1,417 1,423: 04% Overall Change from Previous Year ,, °,,,,,,,,,,,,,,, ... 8� 326 Plastics and Rubber Products 9,844 1,899 i 2,636i 8% 327 Nonmetallic Mineral Products 19,801 3,882 -45 + -10 1 2% 331 Primary Metal Manufacturing 1,542 874 1,240; 41 9% 2014 Annual Total 2014 332 Fabricated Metal Product Manuf 33,900 5,888 7,369? 252% • 1 : ', Diff 333 Machinery Manufacturing 24,491 6,599 7,115; 78% 51" Information 486,856 122,089 132,647 d 86% 334 Computer and Electronic Product 18,265 8,156 i 1,760; -784% 52" Finance and Insurance 87,574 22,296 i 22,742; 20% 335 Electric Equipment, Appliances 1,179 193 391: 1027% 53" Real Estate, Rental, Leasing 314,900 86,678 82,847: -44% 336 Transportation Equipment Man 837,227 265,827 1 132,009: -503% 541 Professional, Scientific, Tech 216,494 45,848 1 53,353: 164% 337 Furniture and Related Products 21,248 3,738 3,723' -04% 551 Company Management 43 26 1 9,211' 355444% 339 Miscellaneous Manufacturing 39,052 12,324 1 11,195: -92% 56" Admin Supp , Premed Svcs 350,417 95,100 81,475; -143% TOTAL MANUFACTURING 1,163,090 349,574 206,323: -41.6% 611 Educational Services 49,123 11,754 11,671; -07% Overall Change from Previous Year �94,?,259, 62" Health Care Social Assistance 66,359 6,212 32,128 4172% 71" Arts and Entertainment 157,908 81,349 64,702: -205% 72" Accommodation and Food Svcs 1,066,580 242,296 1 270,630':. 11 7% 2014 Annual Total 2014 • YrD 81" Other Services 425,896 101,947 114,493; 123% NAICS ' +' • • + • '. • 92" Public Administration 99,676 18,839 29,174: 549% 481 A1r Transportation 0 0 0: N/A TOTAL SERVICES 3,321,827 834,434 905,073: 8.5% 482 Rail Transportation 8,069 1,555 : 3,186: 1049% Overall Change from Previous Year ............................... 484 Truck Transportation 4,740 886 2,375: 168 1 485 Transit and Ground Passengers 4 0 125 N/A 488 Transportation Support 26,786 7,130 1 7,322: 27% 2014 Annual Total 2014 + 2015 491 Postal Service 691 256 1 81: -684% • • 96 Diff 492 Couriers and Messengers 672 249 1: -995% 000 Unknown 0 0 N/A 493 Warehousing and Storage 29,718 c 1,089 3,071':. 181 9/ 111 -115 Agriculture, Forestry, Fishing 7,488 796 1,260: 584% TOTAL TRANSPORTATION 70,679 11,165 16,160 4� 1% 211 -221 Mining &Utilities 28,687 4,387 4,086: -69% Overall Change from Previous Year _,.... ... ° ............... °.......,_48 999 Unclassifiable Establishments 83,442 33,416 18,011: -461 TOTAL SERVICES 119,617 38,599 23,358. �".5% 2014 Annual Total 2014 YrD 015'YTD 'YTD Overall Change from Previous Year - 15241.; 423 Wholesale Trade, Durable Goods 1,024,016 240,348 1 240,5031 01% • • t 4,031,681 4,179,393 424 Wholesale Trade, Nondurable 178,054 41,079 1 44,988: 95% • ° 425 Wholesale Electronic Markets 2,643 702 488 -305% TOTAL WHOLESALE 1,204,714 282,129 1 285,979: 1.4% Overall Change from Previous Year : ......,_3851: a WA State Dept of Revenue audit adjustment to sales tax returns for period March 2014 (adjustment - $45,145) b WA State Dept of Revenue audit adjustment to sales tax returns for period April 2014 (adjustment $10,242) c WA State Dept of Revenue audit adjustment to sales tax returns for period August 2014 (adjustment $25,146) d WA State Dept of Revenue audit adjustment to sales returns for period November 2014 (adjustment $5,167) e WA State Dept of Revenue audit adjustment to sales tax returns for period December 2014 (adjustment - $2,382) f WA State Dept of Revenue audit adjustment to sales tax returns for period March 2015 (adjustment $4,463 93) 03/25/15 f 1, Monthly Sales Tax Report xis Preparf3pyAuburn Finance Department Page 27 of 39 23 The following table presents the Working Capital Statement for each of the City's Enterprise and Internal Service funds. Working Capital is generally defined as the difference between current assets and current liabilities. WORKING CAPITAL ENTERPRISE FUNDS FUNDS 77-77 SEWER SEWERMETRO STORM SOUDWASTE AIRPORT CEMETERY INSURANCE WORKER'S FACILITIES INNOVATION EQUIPMENT COMPENSATION d. TECHNOLOGY RENTAL OPERATING REVENUES Charges For Service $ 2,804,998 $ 1,865,860 $ - $ 2,306,013 $ 3,279,743 $ 4,040 $ 358,184 $ - $ 181,518 - Interfund Charges For Service - - - - - - - - - 861,822 1,347,833 866,366 Sewer Metro Sery ice Revenue - - 3,724,264 - - - - - - - - - Rents, Leases, Concessions, & Other 161,978 16,363 37,698 TOTAL OPERATING REVENUES 2,804,998 1,865,860 3,724,264 2,306,013 3,279,743 166,018 358,184 181,518 878,185 1,385,531 866,366 OPERATING EXPENSES Salaries & Wages $ 600,885 $ 398,794 $ - $ 578,181 $ 99,631 $ 7,143 $ 98,552 $ - $ 19,841 $ 124,935 $ 367,075 $ 149,399 Benefits 278,900 184,102 - 266,688 46,226 2,469 48,753 - 40,733 61,781 153,125 74,299 Supplies 54,746 10,404 - 10,224 7,704 - 47,401 - - 20,391 96,596 180,189 Other Service Charges 793,836 508,432 - 257,468 264,633 109,012 24,602 812,131 93,176 230,328 813,826 75,124 Intergovernmental Services - - - 11,090 - - - - - - - - Waste Management Payments' - - - - 2,479,569 - - - - - - - SewerMetroServices - - 3,938,931 - - - - - - - - - Interfund Operating Rentals & Supplies 322,644 242,568 - 333,551 26,123 - 16,365 - - 28,704 40,539 54,197 Other Expenses - - - - - - - - - - - - Depreciation &Amorfization 758,469 1 544,788 426,494 4,705 1 121,642 13,044 148,614 217,478 TOTAL OPERATING EXPENSES $ 2,809,479 $ 1,889,087 $ 3,938,931 $ 1,883,695 $ 2,928,591 $ 240,266 $ 248,717 $ 812,131 $ 153,750 $ 466,140 $ 1,619,775 $ 750,685 OPERATING INCOME (LOSS) $ (4,482) $ (23,228) $ (214,667) $ 422,319 $ 351,152 $ (74,247) $ 109,467 $ (812,131) $ 27,768 $ 412,045 $ (234,244) $ 115,681 NON - OPERATING REVENUES & EXPENSES Interest Revenue $ 5,218 $ 4,616 $ 141 $ 5,119 $ 750 $ 307 $ 138 $ 258 $ 151 $ 846 $ 1,192 $ 1,951 Contributions - - - 250,000 - - - - - - - 816 Other Non - Operating Revenue 12,589 799 - 2,589 280 (5,737) (0) - - - - 1,818 Gain (Loss) On Sale Of Fixed Assets - - - - - - - - - - - - DebtService lnterest - - - - - - - - - - - - Other Non - Operating Expense TOTAL NON - OPERATING REVENUES & EXPENSES $ 17,806 $ 5,415 $ 141 $ 257,709 $ 1,030 $ (5,430) $ 138 $ 258 $ 151 $ 846 $ 1,192 $ 4,586 PLUS ITEMS NOT AFFECTING WORKING CAPITAL Depreciation $ 758,469 $ 544,788 $ - $ 426,494 $ 4,705 $ 121,642 $ 13,044 $ - $ - $ - $ 148,614 $ 217,478 NET WORKING CAPITAL FROM OPERATIONS 771,794 526,976 (214,526) 1,106,521 356,887 41,965 122,649 (811,873) 27,919 412,891 (84,438) 337,745 Increase In Contributions - System Development $ 178,576 $ 103,156 $ - $ 119,070 - Increase In Contributions - Area Assessments 500 6,891 - - - - - - - - - - Increase In Contributions - Other Governments - - - - - - - - - - - - Increase In Contributions - Other Funds - - - - - - - - - - - - Increase In Contributions - FAA - - - - - - - - - - - - Proceeds of Debt Activity - - - - - - - - - - - - OperatingTransfersln - - - 51,373 - - - - - - - - Increase In Restricted Net Assets 3,423 - - - - (341) - - - - - - Decrease In Long -Term Receivables - - - - - - - - - - - - Increase In Deferred Credits 15,899 TOTAL RESOURCES OTHER THAN OPERATIONS $ 182,499 $ 110,047 $ - $ 170,443 $ - $ 15,558 Net Change In Restricted Net Assets $ 633 $ 171 $ - $ 395 $ - $ (1,037) - Increase In Fixed Assets - Salaries 84,463 44,970 - 68,168 - - - - - - - - Increase In Fixed Assets - Benefits 35,498 20,259 - 27,119 - - - - - - - - Increase In Fixed Assets - Site Improvements 13,834 - - - - - - - - - - - Increase In Fixed Assets - land - - - 250,000 - - - - - - - - Increase In Fixed Assets - Equipment - - - - - - - - - - 217,657 201,320 Increase In Fixed Assets - Construction 555,979 412,273 - 249,469 - 165,401 - - - - - - Increase In Fixed Assets - Other - - - 429 - - - - - - - - Operating Transfers Out 50,000 50,000 - 124,000 - - - - - - - 51,373 Debt Service Principal TOTAL USES OTHER THAN OPERATIONS $ 740,407 1 $ 527,673 $ - $ 719,580 $ - $ 164,364 1 $ - $ - $ - $ - $ 217,657 $ 252,693 NET CHANGE IN WORKING CAPITAL $ 213,887 1 $ 109,350 1 $ (214,526)1 557,385 1 $ 356,887 1 $ (106,842)1 122,649 1 $ (811,873)1 27,919 1 $ 412,891 1 $ (302,095) $ 85,051 BEGINNING WORKING CAPITAL - January 1, 2015 14,027,406 13,346,282 2,100,400 16,051,080 2,491,724 556,938 294,547 1,654,057 440,004 2,194,912 3,543,327 5,844,690 ENDING WORKING CAPITAL - March 31, 2015 14,241,292 13,455,633 1,885,874 16,608,465 2,848,611 450,096 417,196 842,184 467,923 2,607,803 3,241,232 5,929,741 NET CHANGE IN WORKING CAPITAL $ 213,887 1 $ 109,350 1 $ (214,526)1 557,385 $ 356,887 $ (106,842) $ 122,649 1 $ (811,873)1 27,919 1 $ 412,891 $ (302,095)1 $ 85,051 DLA , Pa e 28 of 39 24 March's Waste Management payment in the amount of $835,316 has been added to the 5 olid Waste Fund and is rell ected in t� Ending Working Capital balance. C -M OF AUBURN WASH I NG1'( -)N AGENDA BILL APPROVAL FORM Agenda Subject: Workers Comp and Liability Assessment - 20 Minute Presentation /10 Minute Q &A Department: Attachments: Human Resources PowerNint Administrative Recommendation: Background Summary: Reviewed by Council Committees: Councilmember: Meeting Date: May 26, 2015 Date: May 20, 2015 Budget Impact: $0 Staff: Roscoe Item Number: DI.B DI.B AUBURN * MORE THAN YOU IMAGINED Page 29 of 39 CITY OF :; -I.-, * ,,Ai(jBURN WASHINGTON 2015 INSURANCE UPDATE Workers' Compensation &Liability Rob Roscoe Director of Human Resources &Risk Management DLB Page 30 of 39 AUBURN* tvA KE THAN YOU IMAGINED CITY OF :; -I.-, * ,,Ai(jBURN WASHINGTON Revenue Time Loss Recoveries Bank Interest L &I Employer L &I Emglovee Workers' Compensation 2014 Ending Balance $81,902 $230 $679,673 535.974 Total Revenue 1 $797,779 Expenses Salaries, Wages, Benefits $110,914 Medical $46,820 TPA $21,600 Stoploss $56,340 Time Loss $2,791 State Expenses $119,303 Bank Fees $7 Total Expenses $357,775 Net Balance: $440,004 CITY OF ,,Ai(jBURN WASHINGTON $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 DLB Workers' Compensation Reserves ■ Expense ■ Premium 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 i JBURN' gRlMiNAN -YOU IMAUNED CITY OF :; -I.-, * ,,Ai(jBURN WASHINGTON Workers' Compensation • 2014 experienced a "run -in" phase - $440,000 for future reserves - Open claims prior to 2014 remain with State L &I - claims open 2014 and later are paid by the City • Stop Loss coverage at $500,000 • Medical cost inflators • Rate stabilization &customer service DI.B ALIBURIV PR{M HiAN YOU IA9AC;l \ELl CITY OF :; -I.-, * ,,Ai(jBURN WASHINGTON Washington Cities Insurance Authority • Liability., Auto,. &Property Coverage - Liability $0 deductible - Auto physical damage $5,000 deductible - Property $5,000 deductible • Pool vs. Insurance Company • Rates determined by actuary - WCIA Rate and a Member Rate - Rates capped ± 150 (maximum 300) Goal is to keep rates stable and predictable DI.B UBUi l l RA , i NA IN YUU I M AG IN L -B-U-RN WAS I I I T 0 •Previous five years of losses ,20,0 - 20,4= 2o,6Assessment) • Individual losses capped at $100,000 • Credibility factor based on % of losses compared to worker hours • Market demands on insurance premiums $1.200 $1.100 $1.000 $0.900 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 CITY OF :; -I.-, * ,,Ai(jBURN WASHINGTON Uncapped Losses Actual v Expected Claim Type Actuarial Group 4 Auburn 1/12010 - 12/31/2014 Exceeds Expected Total Incurred 1/1/2010 - 12/31/2014 Expected Total Actual Total Incurred Incurred Automobile Errors & Omissions General Liability Personnel $2,609,549 $166,973 $2,498,215 $159,849 $12,338,199 $789,465 $3,780,182 $241,877 $333,184 Yes $66,312 No $303,808 No $4,841 No Public Safety $8,627,411 $552,029 $442,832 No Totals: $29,853,556 $1,910,193 $1,150,977 No Auburn % of Actuarial Group 4 Worker Hours is 6.4% Expected Total Incurred = [Actuarial Group Total Incurred] x [% of Member Worker Hours] If Auburn is 6.4% of the worker hours Auburn is expected to be 6.4% of the total incurred costs DI.B U,BUR VgRA &' M l AN YOU IMAU ED CITY OF :; -I.-, * ,,Ai(jBURN WASHINGTON Uncapped Dept. Losses Actual v Expected Department Actuarial Group 4 Auburn 1/12010 - 12/31/2014 Exceeds Expected Total Incurred 1/1/2010 - 12/31/2014 Expected Total Actual Total Incurred Incurred Administration $2,390,337 $152,947 $64,187 No Animal Control $2,868 $184 $0 No City Light $1,143,365 $73,159 $0 No Development Review $1,308,196 $83,706 $725 No Fire Medic $470,301 $30,092 $0 No Fire Suppresion $177,657 $11,367 $0 No Library $3,107 $199 $0 No Marina $770 $49 $0 No Parks Maintenance $435,284 $27,852 $49,888 Yes Park Rec Programs $527,589 $33,758 $33,512 No Police $11,459,230 $733,224 $707,817 No PW Engineering $1,532,002 $98,026 $26,739 No PW Refuse $188,566 $12,065 $0 No PW Sewer $3,188,818 $204,038 $80,122 No PW Streets $5,247,601 $335,770 $179,790 No PW Water $1,777,163 $113,713 $8,197 No Senior Center $702 $45 $0 No Totals: $29,853,556 $1,910,194 $1,150,977 No Expected Total Incurred = [Actuarial Group Total Incurred] x [% of Member Worker Hours] Auburn is 6.4% of the worker hours - Auburn is expected to be 6.4% of the total incurred costs D ,p V g I.B U ]3Ui l l g'�Ujl� FiAN YOU IM A(,[.\ L CITY OF AUBURN Auburn's Capped 5 Year Losses WASHINGTON Actual vs. Expected —MMV -7 1111 5 YR Actual 5 YR Expected Assessment $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 $8t 2005-2009 for 2011 Assessment 2006-2010 for 2012 Assessment $6 $704, $800,232 2007-2011 2008-2012 2009-2013 2010-2014 for 2013 for 2014 for 2015 for 2016 Assessment Assessment Assessment Assessment CITY OF �* .ALj$URI\T Liability -Total Incurred WASHINGTON indemnity, legal, expenses, &reserves) $1,000,000 - $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 MAN YOU IMAGINLD