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HomeMy WebLinkAbout08-14-2017 CITY COUNCIL STUDY SESSION AGENDACity Council Study Session and Special Focus Area August 14, 2017 - 5:30 PM Council Chambers - City Hall AGENDA Watch the meeting LIVE! Watch the meeting video Meeting videos are not available until 72 hours after the meeting has concluded. I. CALL TO ORDER A. Roll Call II. ANNOUNCEMENTS, REPORTS, AND PRESENTATIONS A. Auburn Station Access Improvement Project - Preferred Alternative Site (30 Minute Presentation) III. AGENDA ITEMS FOR COUNCIL DISCUSSION A.Capital Project Status Report (10 Minute Presentation) (Snyder) B.Parks / Open Space Plan (20 Minute Presentation) (Faber) IV. FINANCE AND ECONOMIC DEVELOPMENT DISCUSSION ITEMS A.Resolution No. 5310 - Solid Waste Contracts (10 Minute Presentation) (Coleman) B.Fire Relief & Pension Fund (15 Minute Presentation) (Coleman) C. 2016 Comprehensive Annual Financial Report (20 Minute Presentation) (Coleman) D.Resolution No. 5311 - Investment Policy Update (10 Minute Presentation) (Coleman) E.2nd Quarter 2017 Financial Report (10 Minute Presentation) (Coleman) F. Economic Development Update (45 Minute Presentation) (Hinman) V. OTHER DISCUSSION ITEMS VI. NEW BUSINESS VII. MATRIX Page 1 of 87 A.Matrix VIII. ADJOURNMENT Agendas and minutes are available to the public at the City Clerk's Office, on the City website (http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review at the City Clerk's Office. Page 2 of 87 AGENDA BILL APPROVAL FORM Agenda Subject: Capital Project Status Report (10 Minute Presentation) (Snyder) Date: August 9, 2017 Department: CD & PW Attachments: Capital Project Status Report Budget Impact: $0 Administrative Recommendation: For discussion only. Background Summary: The purpose of this discussion is to inform the Council and Public of the overall status of the City’s Capital Project program managed by the Community Development & Public Works (CDPW) Department. The Capital Projects Group of CDPW is currently managing 35 active projects with a total cost of $58 million. Of these projects, 11 are in the design phase and 24 are under construction. Within the next 3 months, 4 additional projects are expected to enter the construction phase. The total value of projects completed by years is as follows: Total Capital Projects Completed by Year (by year of final acceptance by City Council) 2014 = 28.8 million 2015 = 24.8 million 2016 = 37.6 million 2017 = 42.4 million (anticipated) Reviewed by Council Committees: Councilmember: Staff:Gaub Meeting Date:August 14, 2017 Item Number: Page 3 of 87 Page 4 of 87 CP1218 This project will construct corridor improvements to AWS between Muckleshoot Plaza and Dogwood Street SE. Improvements include designated U-turns, access management, driveway consolidation, addition of a 2nd left turn lane from eastbound AWS into the MIT Casino, bus pull-outs, medians, signal improvements, and sidewalks. 1,077,365 (Street) 1,161,340 (Water) 2,333,108 (Federal) 466,191 (WSDOT) 5,038,004 4,964,214 100% JAN 29% JAN Larson Site preparation and waterline installation on the north side of the roadway underway. Agreement with King County for reimbursement for costs to construct bus shelter footings under review. Change order for cost of footings and additional excavation and fill material is being negotiated. CH2MAuburn Way South Corridor Safety (Muckleshoot Plaza to Dogwood St SE) Miles Resources1718 C222A This project will complete the widening of S 277th from the intersection of Auburn Way North to L Street NE, including the construction of a pedestrian trail and relocation of the floodway along S 277th. 1,539,186 (Street) 1,020,700 (Federal) 2,300,000 (Developer) 3,933,990 (TIB) 8,928,876 8,895,956 100% MAY 45% NOV Truong Construction work is underway. The Contractor is working on retaining walls, excavating and constructing the future stream and pond, and the culvert across 277th. Parametrix277TH-AUBURN WAY N TO GREEN RIVER BRIDGE Scarsella Bros.16 17 C410A This project will complete wetland mitigation enhancements at the S 277th wetland mitigation sites. 55,000 (Streets) 55,000 55,000 100%100%Howard Monitoring work in progress. Actively seeking mitigation acceptance from Corps to end monitoring period. 277TH WETLAND MITIGATION MONITORING Project Number Street/Utilities Total Budget Project Budget Total Estimated Costs % Complete Finish Date % Complete Construction Project Manager ContractorProject Name & Description Other Status Capital Project Status Report Community Development And Public Works Department - Engineering General Services Division Finish Date Design Consultant Design CONSTRUCTIONProject Status: Generated by eGIS: 8/9/2017 Page 1 of 12 Page 5 of 87 CP1507 This project will rehabilitate and preserve the existing pavement on Auburn Way North between 22nd St NE and 45th St NE. This work will also upgrade traffic signals and sidewalk curb ramps. 972,500 (Streets) 42,500 (Storm) 75,000 (Sewer) 16,000 (Water) 967,500 (Federal) 2,073,500 2,138,426 100% FEB 90% OCT Thompson Paving is complete except at the intersection of 37th St NE where final paving will not occur until a new signal pole is installed, which is anticipated in late August. Construction end date updated to account for long lead time for the new signal pole. N/AAuburn Way North Pavement Preservation Tucci and Sons, Inc. 17 17 CP1417 This project will add an automatic shutdown/diversion if disinfection system fails, add a screen or a Tide-flex valve to the overflow at the site, and evaluate site stabilization. 605,000 (Water) 605,000 501,682 100% DEC 95% SEP Barba Construction was in suspension for procurement of materials but has now resumed. Schedule adjusted to account for suspension time. MSAWEST HILL SPRINGS IMPROVEMENTS RL Alia1617 CP1501 This project will implement low-cost traffic signal safety improvements at various intersections by installing flashing yellow arrow signals, auxiliary signal heads, and backplates. 55,000 (Streets) 412,575 (Federal) 467,575 467,575 100% AUG 100% JUN Larson Physical completion granted on June 30, 2017. Final pay in process. N/ATRAFFIC SIGNAL SAFETY IMPROVEMENTS Tansportation Systems, Inc. 16 17 Project Number Street/Utilities Total Budget Project Budget Total Estimated Costs % Complete Finish Date % Complete Construction Project Manager ContractorProject Name & Description Other Status Capital Project Status Report Community Development And Public Works Department - Engineering General Services Division Finish Date Design Consultant Design CONSTRUCTIONProject Status: Generated by eGIS: 8/9/2017 Page 2 of 12 Page 6 of 87 CP1107 This project will be done in phases. The first phase 1A will complete investigation of the Fulmer Wellfield area to determine the required analysis and drilling program needed to utilize the full water rights. Phase 1B will complete a drilling and testing program as well as an alternatives analysis. Phase 2 will complete the physical improvements. 2,320,315 (Water) 2,660,315 2,659,550 100% APR 10% SEP Barba Construction underway. Contractor completing site demolition work. Phase 2: Carollo Engineers FULMER WELLFIELD IMPROVEMENT PROJECT Award Construction 17 17 CP1415 This project will repurpose the existing W Main St between W Valley Highway and the Interurban Trail. The project will also provide Intelligent Transportation System (ITS) improvements along W. Main St., West Valley Hwy, 15th St. SW, and C St. SW. 824,923 (Streets) 3,770,015 (Federal) 4,379,563 4,094,879 100% JUN 99% SEP Truong Construction punchlist work underway. Construction finish date adjusted to account for time to coordinate punchlist work. CH2MW MAIN ST MULTIMODAL CORRIDOR AND ITS IMPROVEMENTS Tucci and Sons1617 CP0767 This project is an annual level of effort to complete the required monitoring for the mitigation site. 25,000 (Streets) 25,000 25,000 Howard City received release from the Dept. of Ecology. Monitoring is complete. SoundviewMOHAWK PLASTIC WETLAND MITIGATION MONITORING Project Number Street/Utilities Total Budget Project Budget Total Estimated Costs % Complete Finish Date % Complete Construction Project Manager ContractorProject Name & Description Other Status Capital Project Status Report Community Development And Public Works Department - Engineering General Services Division Finish Date Design Consultant Design CONSTRUCTIONProject Status: Generated by eGIS: 8/9/2017 Page 3 of 12 Page 7 of 87 CP1511 This project replaces the existing storm system, sanitary sewer main, and water improvements along M St SE from 3th St SE to E Main St. The project also includes a full rebuild of M Street SE including new sidewalks and curbs and gutters within the project limits. 664,652 (Storm) 481,000 (Water) 416,183 (Sewer) 531,877 (Streets) 2,093,712 1,933,711 100% MAR 50% NOV Thompson M St SE from 3rd St SE to East Main St is closed to through traffic from June 26 through September 1. Installation of new sewer, storm, and water meters is complete. Engineering is working with Police to address the on-going concerns of detour traffic utilizing local streets between Main and 4th St SE. N/AM ST SE IMPROVEMENTS (3RD ST SE TO EAST MAIN ST) ACI1717 CP1317 This project will install automated meter reading infrastructure and software, and will replace all water meters. 6,000,000 (Water) 6,000,000 6,000,000 100% JUL 40% DEC Snyder Work is underway.FergusonWater Meter and Billing System Improvements Ferguson1517 CP1513 This project will construct a round-a-bout and complete the design of intersection bicycle and pedestrian safety improvements at 22nd St NE and I St NE. 315,000 (Streets) 29,890 (Sewer) 405,000 (Water) 200,000 (State Grant) 940,000 (Federal Grant) 1,889,889 1,784,015 100% JUN 0% APR Wickstrom City Council awarded the contract at their meeting on August 7, 2017. Preconstruction meeting is scheduled for August 24th. Budget and cost information updated to reflect contract award. Construction finish date updated to reflect final paving work being completed during a favorable weather season. Reid Middleton 22nd St NE and I St NE Intersection Improvements DPK, Inc.17 18 Project Number Street/Utilities Total Budget Project Budget Total Estimated Costs % Complete Finish Date % Complete Construction Project Manager ContractorProject Name & Description Other Status Capital Project Status Report Community Development And Public Works Department - Engineering General Services Division Finish Date Design Consultant Design CONSTRUCTIONProject Status: Generated by eGIS: 8/9/2017 Page 4 of 12 Page 8 of 87 CP1522 (CP1122) This project will replace the 30-inch storm drainage line along 30th Street NE from approximately I Street NE to Brannan Park Storm Pump Station to address localized flooding issues. Phase 1A was completed in Jan. 2016 (CP1122) 2,293,810 (Storm) 2,504,785 2,504,785 100% JUL 100% MAY Truong Physical Completion granted on July 18, 2017. Final pay in process. Otak30th Street NE Storm Improvements (Phase 1B):KLB Construction1617 CP1613 This project will install a roof retrofit system for the aging roof at the M&O Building. 292,700 (Facilities) 292,700 292,130 100% MAY 0% SEP Barba Notice to Proceed will be issued on August 11, 2017. HelixM&O Building Roof Retrofit Multifacet Group1717 CP1520 This project will complete the reconstruction of B St NW between 37th St NW and 49th St NW, including replacing sanitary sewer and addressing storm drainage needs. 2,867,829 (Streets) 985,607 (Sewer) 3,853,436 3,273,613 100% MAY 7% DEC Carter Construction is underway. Contractor continuing dewatering efforts in preparation of sanitary sewer installation. KPGB St NW Reconstruction Project Johansen1717 Project Number Street/Utilities Total Budget Project Budget Total Estimated Costs % Complete Finish Date % Complete Construction Project Manager ContractorProject Name & Description Other Status Capital Project Status Report Community Development And Public Works Department - Engineering General Services Division Finish Date Design Consultant Design CONSTRUCTIONProject Status: Generated by eGIS: 8/9/2017 Page 5 of 12 Page 9 of 87 CP1512 This project will replace and/or repair aging and damaged sewer systems through out the City. 1,187,904 (Sewer) 1,187,904 835,515 100% AUG 100% MAY Wickstrom Physical Completion granted on June 9, 2017. Final payment is in process. N/A2015 Sanitary Sewer Repair and Replacement Road Construction Northwest 16 17 CP1606 This project is being completed as part of the Auburn Community and Teen Center project. It will construct a connection from the current termination of H Street SE at the White River Museum to Auburn Way South. The connection to Auburn Way South will serve as shared entry to the Les Gove Campus and the King County Library. The project will also close Deals Way adjacent to the spray park and library. 855,000 (Parks) 855,000 855,000 100% JAN 100% MAY Larson Final pay approved by Council on July 3, 2017. Project complete. N/AAuburn Teen and Community Center (H Street SE Extension) Road Construction Northwest 17 17 CP1617 Replaces 5 PRV stations in the Lea Hill service area that have exceeded their useful life. 1,032,300 (Water) 1,032,000 1,063,339 100% JUN 0% NOV Larson Preconstruction meeting held on August 3, 2017. Notice to proceed expected to be issued for August 11, 2017. BHCLea Hill PRV Stations NOVA Contracting 17 17 Project Number Street/Utilities Total Budget Project Budget Total Estimated Costs % Complete Finish Date % Complete Construction Project Manager ContractorProject Name & Description Other Status Capital Project Status Report Community Development And Public Works Department - Engineering General Services Division Finish Date Design Consultant Design CONSTRUCTIONProject Status: Generated by eGIS: 8/9/2017 Page 6 of 12 Page 10 of 87 CP1523 The purpose of the project is to rehabilitate and preserve the existing pavement on Lake Tapps Parkway between the Western City Limit near 8th Street E and Lakeland Hills Way 237,850 (Streets) 5,000 (Sewer) 5,000 (Storm) 750,000 (Federal) 997,850 996,591 100% APR 40% SEP Barba Construction work is underway. Current work consists of replacing curb ramps at the intersection of Lake Tapps Parkway and Lakeland Hills Way and grinding and overlaying the westbound travel lanes. The eastbound travel lanes have been paved. N/ALake Tapps Parkway Preservation Project ICON Materials1717 CP1614 This project will reconstruct the 28th St SE loop east of R St., 27th St SE, 26th St SE, S St SE, T St SE and U St SE; reconstructed 19th St SE and G St SE near Olympic Middle school, and preserve 53rd Ave S, S 302nd Pl and associated cul-de-sacs in the Westhill. 2,556,000 (Streets) 500,000 (Water) 200,000 (Storm) 3,256,000 2,900,000 100% MAY 1% DEC Carter Construction is underway. Contractor is installing drainage on R St and 28th St Loop. Jacobs Engineering, Inc. 2017 Local Street Reconstruction and Preservation Project Tucci and Sons1717 MS1510 The purpose of the project is to demolish three separate buildings (single-family house, detached garage, and shed) located at 31923 104th Avenue SE. The property will be re-purposed in the near future as part of a Transportation Improvements Project. 101,450 (Streets) 101,450 101,450 100% APR 99% JUL Koshman Physical completion granted on June 29, 2017. Final pay in process. N/A104TH AVENUE SE BUILDING DEMOLITION Quality Construction 17 17 Project Number Street/Utilities Total Budget Project Budget Total Estimated Costs % Complete Finish Date % Complete Construction Project Manager ContractorProject Name & Description Other Status Capital Project Status Report Community Development And Public Works Department - Engineering General Services Division Finish Date Design Consultant Design CONSTRUCTIONProject Status: Generated by eGIS: 8/9/2017 Page 7 of 12 Page 11 of 87 CP1701 This Project will expand ITS operations by installing a DMS sign. 200,000 (Streets) 200,000 179,860 100% MAY 20% AUG Barba Work is underway. Contractor currently working on installation of the new sign foundation. N/AAWS Dynamic Message Sign West Coast Signal, Inc. 17 17 CP1710 This project will reconstruct sections of sidewalk that are in poor condition or pose a risk as tripping hazards. The project will also improve connectivity where sections of sidewalk are missing from the pedestrian network. The project will add curb ramps where barriers exist or rebuild existing curb ramps to meet ADA standards. 204,000 (Capital Improvemen t Fund) 50,000 (General Fund) 254,000 191,348 100% JUN 1% JUL Koshman Construction underway. Contractor beginning site preparation work. N/A2017 Citywide Sidewalk Repairs and Improvement Project K&A Communications 17 17 CP1407 This project will complete the required public improvements that the developer for the Marchini Meadows did not complete. Improvements are prioritized and will be completed based on available funds. 70,000 (Developer Settlement) 70,000 70,000 75% TBD 0% TBD Koshman Overlay of 132nd Ave completed by project CP1506 (2015 Pavement Patching & Overlay). Design and Construction finish dates are shown as unknown because this work is being completed in phases. The next phase, replacing broken sidewalks and driveways, is underway. N/AMARCHINI MEADOWS 17 17 Project Number Street/Utilities Total Budget Project Budget Total Estimated Costs % Complete Finish Date % Complete Construction Project Manager ContractorProject Name & Description Other Status Capital Project Status Report Community Development And Public Works Department - Engineering General Services Division Finish Date Design Consultant Design CONSTRUCTIONProject Status: Generated by eGIS: 8/9/2017 Page 8 of 12 Page 12 of 87 CP1316 This project will complete improvements to the East Ridge Manor storm system in the Lea Hill area. 1,120,000 (Storm) 1,120,000 1,110,000 20% NOV 0% APR Thompson Design is underway.Brown and Caldwell EAST RIDGE MANOR STORM IMPROVEMENTS TBD1718 CP1406 This project will reconstruct the existing signal at C Street SW and Main Street. 465,000 (Street) 465,000 465,000 82% JUL 0% DEC Thompson Design is underway. DKSMAIN ST SIGNAL UPGRADES TBD1717 CP1416 This project will reconstruct F St SE from 4th St SE to Auburn Way South, including adding new sidewalks, curb and gutter, bike lanes, wayfinding signage, street lighting, streetscape elements, and safety improvements, and will include a bike share program with bike boulevard components. Some ROW acquisition is necessary. Some sections of water and sewer lines will be replaced on F St SE between 4th St SE and Auburn Way S. 170,000 (Streets) 100,000 (Water) 24,000 (Sewer) 520,000 (Federal) 814,000 2,727,000 50% TBD 0% TBD Wickstrom Design and Environmental documentation work is underway. Construction funding is not yet secured. Design finish date shown as TBD to reflect notice the City received regarding limited federal funding obligation authority in 2017 for PSRC funded projects. JacobsF ST SE NON-MOTORIZED IMPROVEMENTS TBD1718 Project Number Street/Utilities Total Budget Project Budget Total Estimated Costs % Complete Finish Date % Complete Construction Project Manager ContractorProject Name & Description Other Status Capital Project Status Report Community Development And Public Works Department - Engineering General Services Division Finish Date Design Consultant Design DESIGNProject Status: Generated by eGIS: 8/9/2017 Page 9 of 12 Page 13 of 87 CP1502 This project will improve the safety at the intersection by installing a traffic signal, improving ADA ramps, widening the northeast corner of the intersection to accommodate U-turns, and pavement restoration. 142,240 (Streets) 792,260 (Federal) 934,500 1,003,162 95% SEP 0% APR Barba Right-of-Way (ROW) phase is underway. Design and Construction finish dates adjusted to account for additional time needed to address ROW needs for the project. KPG37TH ST SE AND A ST TRAFFIC SIGNAL TBD1718 CP1312 This project will replace and/or repair aging and damaged storm lines throughout the City. 898,166 (Storm) 898,166 898,166 60% MAR 0% JUL Wickstrom Design is underway. Design and Construction finish dates adjusted to reflect advertising the project during a more favorable weather season for this type of work. N/ASTORM REPAIR & REPLACEMENT TBD1818 CP1516 The purpose of the project is to improve safety and the ability to accommodate the current and forecast fleet of multi-engine piston aircraft for both takeoff and accelerate-stop distances at the Auburn Municipal Airport by extending both ends of Runway 16/34. 1,365,000 (Airport) 1,365,000 1,365,000 16% DEC 0% DEC Wickstrom Consultant selection process for design phase underway. TBDAuburn Municipal Airport Runway Enhancements TBD1718 Project Number Street/Utilities Total Budget Project Budget Total Estimated Costs % Complete Finish Date % Complete Construction Project Manager ContractorProject Name & Description Other Status Capital Project Status Report Community Development And Public Works Department - Engineering General Services Division Finish Date Design Consultant Design DESIGNProject Status: Generated by eGIS: 8/9/2017 Page 10 of 12 Page 14 of 87 CP1603 The project will construct a second, parallel transmission pipeline under the White River, inspect the existing steel transmission main for possible leaks and repair the leaks, if any, and line the portion of the existing steel transmission main to improve its structural integrity and prevent leaks, and to construct another 12” to 18” parallel river crossing casing for providing water service and utility conduit to wilderness game farm park. 1,340,000 (DWSRF) 185,000 (Water) 1,525,000 1,525,000 17% MAR 0% JUL Wickstrom Project is in suspension due to the availability of state funding. JACOBSCoal Creek Springs Transmission Main Repair TBD1818 CP1408 This project will install new tracks under the rolling hangar doors to improve performance. 30,000 (Airport) 30,000 30,000 99% AUG 0% OCT Wickstrom Final contract documents being prepared. KPFFSouth Hangar-Row 3 Door Improvements TBD1717 CP1521 This project will rehabilitate and preserve the existing pavement in the 15th Street NW/NE and Harvey Road SE corridor between State Route 167 and 8th Street NE. Furthermore, grind and overlay 15th Street NW/NE from State Route 167 to Auburn Way N., and grind and overlay Harvey Road NE from Auburn Way N to 8th Street NE. 817,500 (Streets) 50,000 (Storm) 50,000 (Sewer) 817,500 (Federal Grant) 1,735,000 1,735,000 55% DEC 0% SEP Truong Design is underway. N/A15th Street NE/NW Preservation Project TBD1718 Project Number Street/Utilities Total Budget Project Budget Total Estimated Costs % Complete Finish Date % Complete Construction Project Manager ContractorProject Name & Description Other Status Capital Project Status Report Community Development And Public Works Department - Engineering General Services Division Finish Date Design Consultant Design DESIGNProject Status: Generated by eGIS: 8/9/2017 Page 11 of 12 Page 15 of 87 CP1709 This project will design and construct a seismic control valve on the City's largest reservoir. $175,000 Hazard Mitigation Grant Program $25,000 Local City Match $200,000 $200,000 2% APR 0 MAY Thompson Consultant contract negotiations underway. ParametrixReservoir 1 Seismic Control Valve TBD1818 CP1707 This purpose of this project is to design for and improve traffic signal timing and operations, corridor coordination, traffic signal head visibility, and pedestrian accessibility along the A St SE Corridor between 3rd St SE and East valley Highway Access Road. 45,850 (Street) 412,650 (Federal Grant) 458,500 458,500 0% MAY 0% SEP Truong Consultant contract negotiations underway. PH Consulting, LLC & DKS Associates A St. SE Corridor Signal Safety & Operations Improvements TBD1818 Project Number Street/Utilities Total Budget Project Budget Total Estimated Costs % Complete Finish Date % Complete Construction Project Manager ContractorProject Name & Description Other Status Capital Project Status Report Community Development And Public Works Department - Engineering General Services Division Finish Date Design Consultant Design DESIGNProject Status: Generated by eGIS: 8/9/2017 Page 12 of 12 Page 16 of 87 AGENDA BILL APPROVAL FORM Agenda Subject: Parks / Open Space Plan (20 Minute Presentation) (Faber) Date: August 9, 2017 Department: Parks/Art and Recreation Attachments: No Attachments Available Budget Impact: $0 Administrative Recommendation: None Background Summary: Council requested information on the approved PROS Plan. Reviewed by Council Committees: Councilmember:Wales Staff:Faber Meeting Date:August 14, 2017 Item Number: Page 17 of 87 AGENDA BILL APPROVAL FORM Agenda Subject: Resolution No. 5310 - Solid Waste Contracts (10 Minute Presentation) (Coleman) Date: August 8, 2017 Department: Finance Attachments: Resolution No. 5310 WM Contract Extension Letter Amendment #1 KM Amendment #1 Rabanco Budget Impact: $0 Administrative Recommendation: For discussion. Background Summary: The City of Auburn’s Comprehensive Garbage, Recyclables and Compostables Collection Agreement with Waste Management expires December 31, 2017. The City will exercise one of the extension options to extend the agreement 21 months to September 30, 2019. The City of Auburn Comprehensive Agreement for Solid Waste Collection in Annexed Areas with Republic Services also expires December 31, 2017. Resolution No. 5310 will amend the expiration date to September 30, 2019. Reviewed by Council Committees: Councilmember:Staff:Coleman Meeting Date:August 14, 2017 Item Number: Page 18 of 87 ---------------------------- Resolution No. 5310 August 4, 2017 Page 1 of 2 RESOLUTION NO. 5310 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO AMEND THE TERMINATION DATES OF THE COMPREHENSIVE AGREEMENTS FOR SOLID WASTE COLLECTION IN ANNEXED AREAS BETWEEN THE CITY AND REPUBLIC SERVICES INC. AND TO EXTEND THE SOLID WASTE COLLECTION CONTRACT BETWEEN THE CITY AND WASTE MANAGEMENT WHEREAS, the City of Auburn entered into a waste and recyclables collection contract with Waste Management Inc. in October 2011; and WHEREAS, when the City of Auburn annexed the Lea Hill and West Hill areas in 2008, the Kent Meridian Disposal Company and Rabanco LTD, which are now Republic Services Inc., were automatically given a collections franchise for the annexed territory as each were the service provider at the time of annexation; and WHEREAS, the City of Auburn’s solid waste collection contracts with both Waste Management Inc., and Republic Services Inc. will expire on December 31, 2017. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Section 1. That the Mayor is hereby authorized to exercise the City’s right to extend for twenty-one months the term of the contract with Waste Management Inc., according to the terms and conditions of that contract. Section 2. That the Mayor is authorized to execute an amendment extending the term of the solid waste collection agreements with Republic Services Inc. for twenty- one months. Page 19 of 87 ---------------------------- Resolution No. 5310 August 4, 2017 Page 2 of 2 Section 3. That the Mayor is authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Section 4. That this Resolution shall take effect and be in full force upon passage and signatures hereon. Dated and Signed this _____ day of _________________, 2017. CITY OF AUBURN _________________________ NANCY BACKUS, MAYOR ATTEST: _________________________ Danielle E. Daskam, City Clerk APPROVED AS TO FORM: _________________________ Daniel B. Heid, City Attorney Page 20 of 87 Page 21 of 87 AMENDMENT NO. 1 to the CITY OF AUBURN COMPREHENSIVE AGREEMENT FOR SOLID WASTE COLLECTION IN ANNEXED AREAS CITY OF AUBURN – KENT-MERIDIAN DISPOSAL COMPANY DBA REPUBLIC SERVICES Executed January 14, 2008 WHEREAS, Kent-Meridian Disposal Company was providing solid waste and recycling collection services to the Lea Hill area at the time the City of Auburn annexed Lea Hill in 2008; and WHEREAS, Upon annexation of the Lea Hill area, the City of Auburn was required by RCW 35A.14.900 to grant Kent-Meridian Disposal Company a franchise to continue its service within the annexed territory for seven years; and WHEREAS, In January 2008, the City of Auburn, through Resolution 4290, executed an agreement with Kent-Meridian Disposal Company for solid waste collection in the annexed area, effective until December 31, 2017; and WHEREAS, the City of Auburn now desires, and it is in the public interest to extend the term of that agreement for an additional twenty-one months, and WHEREAS, Republic Services, Inc., which acquired Kent-Meridian Disposal Company, desires to extend the January 2008 agreement for twenty-one months subject to the same terms and conditions NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the sufficiency of which is acknowledged, The City of Auburn, a municipal corporation of the State of Washington, and Republic Services, Inc. a Delaware corporation, agree to amend the “City Of Auburn Comprehensive Agreement for Solid Waste Collection In Annexed Areas” in the following manner for the purpose of extending the agreement’s term twenty-one additional months: Attachment B of the Agreement is deleted and is amended to read as follows: “Attachment B: Terms of Agreement B1: Ordinance 5346 through 12/31/2010 B2: Ordinance 5516 through 12/31/2012 B3 Ordinance 5937 through 12/31/2015 B4: Ordinance 6121 through 9/30/2019 B5: Ordinance 6122 through 12/31/2017” Page 22 of 87 All other provisions of the Agreement and of any previous amendments remain in full force and effect. CITY OF AUBURN REPUBLIC SERVICES, INC. ______________________________ _________________________________ NANCY BACKUS, MAYOR Date: ____________________, 2017 Title: __________________________ ATTEST: Date: ________________________, 2017 _______________________________ Danielle E. Daskam, City Clerk APPROVED AS TO FORM: _______________________________ Dan Heid, City Attorney Page 23 of 87 AMENDMENT NO. 1 to the CITY OF AUBURN COMPREHENSIVE AGREEMENT FOR SOLID WASTE COLLECTION IN ANNEXED AREAS CITY OF AUBURN – RABANCO LTD. DBA REPUBLIC SERVICES OF KENT Executed January 14, 2008 WHEREAS, Rabanco Ltd. was providing solid waste and recycling collection services to the West Hill area at the time the City of Auburn annexed West Hill in 2008; and WHEREAS, Upon annexation of the West Hill area, the City of Auburn was required by RCW 35A.14.900 to grant Rabanco Ltd. a franchise to continue its service within the annexed territory for seven years; and WHEREAS, In January 2008, the City of Auburn, through Resolution 4290, executed an agreement with Rabanco Ltd. for solid waste collection in the annexed area, effective until December 31, 2017; and WHEREAS, the City of Auburn now desires, and it is in the public interest to extend the term of that agreement for an additional twenty-one months; and WHEREAS, Republic Services, Inc., which acquired Rabanco Ltd., desires to extend the January 2008 agreement for twenty-one months subject to the same terms and conditions. NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the sufficiency of which is acknowledged, The City of Auburn, a municipal corporation of the State of Washington, and Republic Services, Inc. a Delaware corporation, agree to amend the “City Of Auburn Comprehensive Agreement for Solid Waste Collection In Annexed Areas” in the following manner for the purpose of extending the agreement’s term twenty-one additional months: Attachment B of the Agreement is deleted and is amended to read as follows: “Attachment B: Terms of Agreement B1: Ordinance 5346 through 12/31/2010 B2: Ordinance 5516 through 12/31/2012 B3 Ordinance 5937 through 12/31/2015 B4: Ordinance 6121 through 12/31/2017 B5 Ordinance 6122 through 9/30/2019” Page 24 of 87 All other provisions of the Agreement and of any previous amendments remain in full force and effect. CITY OF AUBURN REPUBLIC SERVICES, INC. ______________________________ _________________________________ NANCY BACKUS, MAYOR Date: ____________________, 2017 Title: __________________________ ATTEST: Date: ________________________, 2017 _______________________________ Danielle E. Daskam, City Clerk APPROVED AS TO FORM: _______________________________ Dan Heid, City Attorney Page 25 of 87 AGENDA BILL APPROVAL FORM Agenda Subject: Fire Relief & Pension Fund (15 Minute Presentation) (Coleman) Date: August 8, 2017 Department: Finance Attachments: Memo Budget Impact: $0 Administrative Recommendation: Background Summary: For review and discussion only. Reviewed by Council Committees: Councilmember: Staff:Coleman Meeting Date:August 14, 2017 Item Number: Page 26 of 87 Page 1 of 3 Interoffice Memorandum To: Auburn City Council From: Shelley Coleman, Finance Director CC: Nancy Backus, Mayor Date: August 9, 2017 Re: Fire Pension Fund and Liability The City has a Fire Pension Fund (FPF) and it is obligated to pay retirement benefits to active members as of March 1, 1970. Currently the FPF has 13 retired members which includes four survivors as beneficiaries. The Fund operates on a pay-as-you-go basis. (The City retained the fire pension liability when the VRFA was formed and all fire LEOFF 1 liabilities. This memorandum only discusses the fire pension liability.) For those retired after 1970, the City must pay the excess of the FPF benefit over the LEOFF benefit. The LEOFF benefits increase with the CPI for Seattle, while most of the FPF benefits increase with wages of the current active firefighters in the rank the members held at retirement. For this reason, the benefits are highly sensitive to the spread between wage increases and CPI increases. Wages have typically grown at a faster rate than CPI and are expected to continue to do so in the future. Example of the benefit calculation: Suppose that a member has an FPF benefit of $4,000 per month and a LEOFF benefit of $3,500 per month. The City paid benefit is $500 per month. If wages increase at 3.25%, while the CPI increases at 2.25%, the benefit increases look like the following: As of January 1, 2017, the actuarial present value of the future excess pension benefits to be provided by the City is $3,300,526, which was 10% higher than expected due to a 4% increase in demographic experience and 6% increase due to changes in benefit amounts compared to expectations. Current Following Year Increase Year FPF 4,000.00$ 3.25% 4,130.00$  LEOFF 3,500.00$ 2.25% 3,578.75    City Paid Benefit 500.00$     10.25% 551.25$     Page 27 of 87 Page 2 of 3 The value of total assets available to fund future excess pension benefits is $2,412,576 leaving an actuarial deficiency of $887,950. The shortfall is because the available assets do not include the state tax on fire insurance premiums, which is $75,000 per year. This revenue stream may not be available in future years and therefore was not included in the funding scenario in the most recent study. Previous studies assumed this revenue stream through 2024. The City requested the actuary to provide a contribution schedule to address the deficit over a 5-year period at the assumed rate of return of 3.5% and 2.00%. The required contribution over 5 years, beginning in 2017, would be $192,000 per year at a 3.5% rate of return or $307,000 per year at a 2% rate of return. Recommendation: The City should make a $192,000 per year contribution for 5 years. Fire Insurance Premium Tax Receipts, if received, should be used to reduce the amount of annual contribution. Funding needs would be revisited at the end of the 5-year period. Since payouts are planned to occur over the next 30 years, the City has time to make up any further shortfalls. 2015 2017 A. Actuarial PV of benefits not provided by LEOFF system 3,130,000$        3,300,526$        B. Assets of the Fund   Investments less Liabilities 2,609,000$       2,412,576$        C. PV of future fire insurance premiums (thru 2024)741,000$          ‐$                    D. Total Assets (B + C)3,350,000$       2,412,576$        Actuarial deficiency (A ‐ D not less than zero)‐$                    887,950$           Derivation of Contributions Required for Pension Benefits Page 28 of 87 Page 3 of 3 Currently there are 13 people receiving pension payments from the FPF: Age Number 70‐74 1 75‐79 1 85‐89 1 Retired for Service Age Number 65‐69 1 70‐74 3 80‐84 1 90‐94 1 Disabled in the Line of Duty Age Number 65‐69 1 70‐74 1 80‐84 1 90‐94 1 Survivors  Page 29 of 87 AGENDA BILL APPROVAL FORM Agenda Subject: Resolution No. 5311 - Investment Policy Update (10 Minute Presentation) (Coleman) Date: August 8, 2017 Department: Finance Attachments: Resolution No. 5311 Investment Policy 100-40 Budget Impact: $0 Administrative Recommendation: For discussion. Background Summary: In order to invest funds in a manner that will provide the highest investment return with the maximum security while being responsive to financial obligations, it is appropriate that the City have a policy to define the parameters and processes governing investment practices. To achieve this goal, staff recommends the adoption of Resolution No. 5311 authorizing the Mayor to implement Investment Policy 100-40, marked as Exhibit A of the resolution. Notes: The existing policy has not been updated since 2003. Changes from the 2003 policy: Increased maximum length of investment from 3 years to 5 years; Removed Banker’s Acceptances and Commercial Paper; Updated references; and Added Standard & Poor’s (S&P) and Moody’s minimum ratings requirement. Reviewed by Council Committees: Councilmember:Staff:Coleman Meeting Date:August 14, 2017 Item Number: Page 30 of 87 Page 31 of 87 ---------------------------- Resolution No. 5311 August 4, 2017 Page 1 of 2 RESOLUTION NO. 5311 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, APPROVING THE POLICY AND PROCEDURES FOR INVESTMENT PRACTICES WHEREAS, the City has various financial responsibilities related to its many functions and activities; and WHEREAS, the City has financial assets in various funds; and WHEREAS, the City also has the practice of approving and endorsing policies and procedures via resolution of the City Council; and WHEREAS, in order to invest funds in a manner that will provide the highest investment return with the maximum security while being responsive to its financial obligations, it is appropriate that the City have a policy to define the parameters and processes used for investment practices. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Section 1. That the policy and procedures for investment practices, index number 100-40, a copy of which is attached hereto, marked as Exhibit “A” and incorporated herein by this reference, is approved and the Mayor is authorized to implement the same. Section 2. That the Mayor is further authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Page 32 of 87 ---------------------------- Resolution No. 5311 August 4, 2017 Page 2 of 2 Section 3. That this Resolution shall take effect and be in full force upon passage and signatures hereon. Dated and Signed this _____ day of _________________, 2017. CITY OF AUBURN ________________________________ NANCY BACKUS, MAYOR ATTEST: _________________________ Danielle E. Daskam, City Clerk APPROVED AS TO FORM: _________________________ Daniel B. Heid, City Attorney Page 33 of 87 EXHIBIT A Page 34 of 87 TITLE: INVESTMENT POLICY SUBJECT: INVESTMENTS INDEX NUMBER: 100-40 EFFECTIVE DATE 8/28/2017 SUPERSEDES 4/10/2003 PAGE 1 OF 10 PREPARED BY: SHELLEY COLEMAN MAYOR’S APPROVAL ADMINISTRATIVE POLICY AND PROCEDURE 1.0 PURPOSE It is the policy of the City of Auburn to invest public funds in a manner which will provide maximum security, while meeting the daily cash flow demands, conforming to all state and local statutes governing the investment of public funds, and providing a market rate of return through budgetary and economic cycles. 2.0 SCOPE This Investment Policy applies to all financial assets of the City of Auburn. These funds are accounted for in the City's Comprehensive Annual Financial Report and include: 2.1 Funds: 2.1.1 General Fund 2.1.2 Special Revenue Funds 2.1.3 Debt Service Funds (Unless prohibited by Bond indentures) 2.1.4 Capital Projects Funds 2.1.5 Enterprise Funds 2.1.6 Internal Service Funds 2.1.7 Cemetery Endowed Care Fund 2.1.8 Fire Relief & Pension Fund 2.1.9 Any new fund created by Council, unless specifically exempted by Council. Should bond covenants be more restrictive than this policy, funds shall be invested in full compliance with those restrictions. 3.0 REFERENCES ACC 2.15 ACC 3.04.100 Auburn Ordinance No. 3034 RCW 35.39.030, RCW 35.39.034, RCW 43.250, RCW 39.58, and RCW 39.59 4.0 POLICY 4.1 Prudence: Investments shall be made with judgment and care--under circumstances then prevailing--which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Page 35 of 87 ADMINISTRATIVE POLICY AND PROCEDURE TITLE: INVESTMENT POLICY INDEX NO: 100-40 PAGE: 2 of 10 4.1.1 The standard of prudence to be used by the Director of Finance or any designees in the context of managing the overall portfolio is to be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Employees acting in accordance with written procedures and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 4.2 Objective: The primary objectives, in priority order, of the City of Auburn's investment activity shall be: 4.2.1 Safety: Safety of principal is the foremost objective of the City of Auburn. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 4.2.2 Liquidity: The investment portfolio will provide liquidity sufficient to enable the City to meet all cash requirements that might be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands. 4.2.3 Return on Investments: The City of Auburn's investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and liquidity needs. Return on investments is of secondary importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair rate of return relative to the risk being assumed. Securities shall generally be held until maturity with the following exceptions: 4.2.3.1 A security with declining credit may be sold early to minimize the loss of principal. 4.2.3.2 A security swap would improve the quality, yield, or target duration of the portfolio. 4.2.3.3 Liquidity needs of the portfolio require that the security be sold early. 4.3 Delegation of Authority: 4.3.1 Authority to manage the City of Auburn’s investment program is derived from ACC 2.15 and Ordinance No. 3034. Management responsibility for the investment program is hereby delegated to the Finance Director, who shall establish written procedures for the operation of the investment program consistent with this Investment Policy. No person may initiate investment transactions except as provided under the terms of the policy and procedures established by the Finance Director. The Finance Director shall be responsible Page 36 of 87 ADMINISTRATIVE POLICY AND PROCEDURE TITLE: INVESTMENT POLICY INDEX NO: 100-40 PAGE: 3 of 10 for all transactions undertaken and shall establish a system of controls to regulate activities of City employees. 4.4 Ethics and Conflicts of Interest: Employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. They shall disclose to the Mayor and the State of Washington any material financial interests in financial institutions that conduct business within this jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City portfolio, particularly with regard to the time of purchase and sales. 4.5 Authorized Finance Dealers and Institutions: The Finance Director will maintain and review annually a list of financial institutions authorized to provide investment services. The City shall follow Government Finance Officers Association’s (GFOA) best practices for evaluating and selecting financial institution’s and broker/dealers. As required by state law (RCW 39.58), deposits and certificates of deposit will be made only with, or from, those institutions approved by the Washington Public Deposit Protection Commission (PDPC) as eligible for deposit of public funds. The City will only place funds, exceeding the current FDIC insurance limits, with banks who are currently participating in the Washington State PDPC program. Compliance/ listing with the PDPC will be verified by the designated investment officer utilizing the Washington State Treasurers website (http://tre.wa.gov/government/pdpc.shtml) The Finance Director annually adopts the eligibility list provided by the PDPC as the approved depository list. These may include "primary" dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15c3-1 (uniform net capital rule). No public deposit shall be made except in a qualified public depository as established by state laws. Qualified broker/dealers and financial institutions will be reviewed and selected by the Finance Director on a routine basis. All brokers/dealers and financial institutions who desire to do business with the City must supply the Finance Director with the following: A. Audited Financial Reports. B. Proof of FINRA (Financial Industry Regulatory Authority) certification. C. Proof of registration with the State of Washington. D. Certification of having read Auburn’s Investment Policy. E. Firms and financial institutions are expected to familiarize themselves with the City of Auburn’s investment objectives, policies, and constraints. The Finance Director will conduct an annual review of the financial condition of the firms. A current, audited financial statement is required to be on file for each financial institution and broker/dealer with whom the City invests. 4.6 Authorized Investments: Eligible investments are only those securities and deposits authorized by statute (RCW 39.58, 39.59, and 43.250). Page 37 of 87 ADMINISTRATIVE POLICY AND PROCEDURE TITLE: INVESTMENT POLICY INDEX NO: 100-40 PAGE: 4 of 10 Among the authorized investments are U.S. Treasury and Agency Securities (i.e. obligations of any government sponsored enterprise eligible for collateral purposes at the Federal Reserve), municipal debt, or certificates of deposits with qualified public depositories within statutory limits as promulgated by the Washington State Local Government Investment Pool. Suitable Investments: 4.6.1 US Treasury Obligations: Direct obligations of the United States Treasury. 4.6.2 U.S. Government Agency obligations and U.S. Government Sponsored Enterprises (GSE’s) which may include, but are not limited to Federal Farm Credit Bank (FFCB), Federal Home Loan Bank (FHLB), Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA), Student Loan Marketing Corporation (SLMA), and/or Tennessee Valley Authority (TVA). 4.6.3 Non-negotiable Certificates of Deposit of financial institutions which are qualified public depositories as defined by RCW 39.58.010(2) and in accordance with the restrictions therein. 4.6.4 Bonds of the State of Washington and any local government in the State of Washington, General Obligation bonds outside the State of Washington; at the time of investment, the bonds must have a rating of AA- from S&P or Aa3 from Moody’s, or higher. In the case of a split rating, the lower rating of these two rating agencies will be used. 4.6.5 Washington State Local Government Investment Pool (LGIP) managed by the Washington State Treasurer’s Office. 4.6.6 Other investments authorized by law. 4.6.7 Time deposits and savings account deposits with PDPC approved banks. 4.7 Bank Collateralization: The PDPC makes and enforces regulations and administers a program to ensure public funds deposited in banks and thrifts are protected if a financial institution becomes insolvent. The PDPC approves which banks and thrifts can hold state and local government deposits and monitors collateral pledged to secure uninsured public deposits. Under RCW 39.58.240, all public treasurers and other custodians of public funds are relieved of the responsibility of executing triparty agreements, reviewing pledged securities, and authorizing additions, withdrawals, and exchanges of collateral. Page 38 of 87 ADMINISTRATIVE POLICY AND PROCEDURE TITLE: INVESTMENT POLICY INDEX NO: 100-40 PAGE: 5 of 10 4.8 Safe Keeping and Custody: 4.8.1 Delivery vs. Payment: All trades of marketable securities will be executed by delivery vs. payment (DVP) to ensure that securities are deposited with a third party custodian prior to the release of funds. 4.8.2 Safekeeping: Securities will be held by an independent third-party custodian selected by the Finance Director. Safekeeping receipts will evidence all transactions. 4.8.3 CD’s: Certificates of deposit will be held by the Finance Director. 4.9 Diversification: The City will diversify its investments by security type and institution. The following schedule provides the maximum holdings in any one type of investments or with any one issuer. Maximum Issuer % per Ratings Ratings Issue Type % of Holdings Issue Type S&P Moody's US Treasury Obligations 100% None N/A N/A US Agency Securities 100% 30% Security must be rated Security must be rated Washington LGIP 100% None N/A N/A Bank Time Deposits/Savings Accounts 40% None Deposits in PDPC approved banks Deposits in PDPC approved banks Certificates of Deposit 40% 10% Deposits in PDPC approved banks Deposits in PDPC approved banks State of Washington or Local Government Bonds 25% 10% AA- or higher Aa3 or higher   4.10 Maturities: To the extent possible, investments will be made to coincide with anticipated cash flow requirements. Because of the inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds such as the Local Government Investment Pool, money market funds, and PDPC bank deposits to ensure that appropriate liquidity is maintained to meet ongoing obligations. 4.10.1 To this extent, 20% of the portfolio, at the time of investment, will be comprised of investments maturing within a year. 4.10.2 Satisfying this requirement, remaining funds may be invested in authorized securities not to exceed five years in maturity, except when compatible with a specific funds investment needs. Page 39 of 87 ADMINISTRATIVE POLICY AND PROCEDURE TITLE: INVESTMENT POLICY INDEX NO: 100-40 PAGE: 6 of 10 4.10.3 To ensure additional liquidity and provide for ongoing market opportunity, the weighted average maturity and modified duration of the portfolio shall not exceed three years. This maximum is established to limit the portfolio to excessive price change exposure. 4.10.4 Cemetery Endowed Care Fund, Fire Relief and Pension Fund, Reserves and CIP funds may be invested in securities exceeding five years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds. 4.11 Internal Control: The Finance Director shall establish a process of independent review by an external auditor. This review will provide internal control by assuring that policies and procedures are being complied with. Such review may also result in recommendations to change operating procedures to improve internal control. All investment procedures and practices should be reviewed by an independent auditor at least annually. In Washington, this review procedure is assured through the annual audit process by the State Auditor's office. 4.12 Performance Standard/Benchmark: The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. 4.12.1 The basis used by the Finance Director to determine whether market yields are being achieved shall be the six-month U.S. Treasury Bill. 4.13 Reporting: The Finance Director is charged with the responsibility of including a report on investment activity and returns in the City’s quarterly financial report. 4.14 Investment Policy Adoption: The City of Auburn’s Investment Policy shall be adopted by resolution of City Council. The policy shall be reviewed on an annual basis by the Finance Director and any modifications made thereto must be approved by Council. 5.0 GLOSSARY AGENCIES: Federal agency securities. ASKED: The price at which securities are offered. BANKER’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. Page 40 of 87 ADMINISTRATIVE POLICY AND PROCEDURE TITLE: INVESTMENT POLICY INDEX NO: 100-40 PAGE: 7 of 10 CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable. COLLATERAL: Securities, evidence of deposit, or other property which a borrower pledges to secure repayment of a loan; also refers to securities pledged by a bank to secure deposits of public monies. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of Auburn. It includes five combined statements and basic financial statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for their own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt (also called free). Delivery versus payment is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contrasts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities, or commodities). DISCOUNT: The difference between the cost price of a security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury bills. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the federal government setup to supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $100,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-a-vis member commercial banks. Page 41 of 87 ADMINISTRATIVE POLICY AND PROCEDURE TITLE: INVESTMENT POLICY INDEX NO: 100-40 PAGE: 8 of 10 FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing & Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The president of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis. The committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington D.C., twelve regional banks, and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase--reverse repurchase agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller- borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. OFFER: The price asked by a seller of securities (when you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and Page 42 of 87 ADMINISTRATIVE POLICY AND PROCEDURE TITLE: INVESTMENT POLICY INDEX NO: 100-40 PAGE: 9 of 10 stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool. PORTFOLIO: Collection of securities held by an investor. PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange commission (SEC), registered securities broker-dealers, and a few unregulated firms. PRUDENT PERSON RULE: An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state--the so called legal list. In other states, the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of sales, compensating use, or ad valorem taxes under the laws of this state, which has segregated for the benefits of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the PDPC to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be an amortized yield to maturity on a bond or the current income return. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate the buyer for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money, that is, increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION (SEC): Agency created by congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See uniform net capital rule. STRUCTURED NOTES: Notes issued by GSEs (FHLB, FNMA, SLMA, etc.) and corporations which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivatives-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options, and shifts in the shape of the yield curve. TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than ten years. Page 43 of 87 ADMINISTRATIVE POLICY AND PROCEDURE TITLE: INVESTMENT POLICY INDEX NO: 100-40 PAGE: 10 of 10 TREASURY NOTES: Intermediate term coupon bearing U.S. Treasury securities having initial maturities from one to ten years. UNIFORM NET CAPITAL RULE: SEC requirement that member firms as well as nonmember broker- dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The annual rate of return on an investment, expressed as a percentage of the investment. (a) Income yield is obtained by dividing the current dollar income by the current market price for the security. (b) net yield, or yield to maturity, is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. YIELD TO MATURITY: The average annual yield on a security, assuming it is held to maturity; equals to the rate at which all principal and interest payments would be discounted to produce a present value equal to the purchase prices of the bond. Page 44 of 87 AGENDA BILL APPROVAL FORM Agenda Subject: 2nd Quarter 2017 Financial Report (10 Minute Presentation) (Coleman) Date: August 8, 2017 Department: Finance Attachments: Q2 Financial Report Budget Impact: $0 Administrative Recommendation: For discussion only. Background Summary: The quarterly 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 the second quarter 2017 status report based on financial data available as of July 25, 2017 for the period ending June 30, 2017 and sales tax information representing business activity that occurred through April 2017. Reviewed by Council Committees: Councilmember: Staff:Coleman Meeting Date:August 14, 2017 Item Number: Page 45 of 87 Quarterly Financial Report Through Q2-2017 General Fund Summary Property TaxesSales TaxesOther TaxesIntergovernmental(Grants, etc.)DevelopmentService FeesCulture &RecreationOther Fees& ChargesOtherRevenuesPersonnelSupplies& ServicesIntergovernmentalOther ExpendituresRevenues Expenditures $0 $5 $10 $15 $20 MillionsYTD Budget YTD Actuals (Favorable) YTD Actuals (Unfavorable) General Fund Revenues and Expenditures (Through June 2017)Council& MayorAdministrativeServicesCommunity &Human ServicesMunicipal Court& ProbationHumanResourcesFinanceCity AttorneyCommunityDevelopmentJail - SCOREPolicePublic WorksParks, Arts& RecreationStreetsNon-Departmental$0 $2 $4 $6 $8 $10 $12 $14 MillionsYTD Budget YTD Actuals (Favorable) YTD Actuals (Unfavorable) General Fund Expenditures by Department (Through June 2017) 1Page 46 of 87 Quarterly Financial Report Through Q2-2017 2 General Fund 2016 Summary of Sources and Uses Annual YTD YTD YTD Budget Budget Actual Actual Amount Operating Revenues Property Tax 6 20,652,000$ 10,893,100$ 10,964,115$ 9,448,363$ 71,015$ 0.7 % Sales Tax 7-9 14,746,000 7,372,800 7,296,187 7,258,400 (76,613)(1.0)% Sales Tax - Pierce County Parks 75,000 35,600 46,279 43,056 10,679 30.0 % Sales Tax - Annexation Credit 2,032,100 987,500 1,006,644 988,193 19,144 1.9 % Criminal Justice Sales Tax 1,889,400 902,200 977,844 945,829 75,644 8.4 % Brokered Natural Gas Tax 351,800 228,400 102,635 160,140 (125,765)(55.1)% City Utilities Tax 10 3,671,300 1,718,300 1,855,464 1,838,188 137,164 8.0 % Admissions Tax 317,000 120,200 193,423 142,414 73,223 60.9 % Electric Tax 10 3,560,000 1,877,500 1,998,132 1,915,419 120,632 6.4 % Natural Gas Tax 10 1,001,200 669,300 727,262 644,107 57,962 8.7 % Cable Franchise Fee 11 971,500 480,800 502,006 487,057 21,206 4.4 % Cable Utility Tax - New 2017 12 1,000,000 500,000 262,899 - (237,101)(47.4)% Cable Franchise Fee - Capital 66,200 33,100 33,353 33,238 253 0.8 % Telephone Tax 10 1,451,800 754,000 711,186 767,726 (42,814)(5.7)% Garbage Tax (external)10 120,000 60,000 63,427 61,778 3,427 5.7 % Leasehold Excise Tax 40,000 23,200 174,508 179,245 151,308 652.2 % Gambling Excise Tax 300,300 150,200 175,858 309,615 25,658 17.1 % Taxes sub-total 52,245,600$ 26,806,200$ 27,091,221$ 25,222,768$ 285,021$ 1.1 % Business License Fees 12-13 222,100$ 100,100$ 111,944$ 90,502$ 11,844$ 11.8 % Building Permits 14 1,575,000 726,800 713,925 840,170 (12,875)(1.8)% Other Licenses & Permits 541,600 225,300 282,774 285,523 57,474 25.5 % Intergovernmental (Grants, etc.)15 6,123,910 3,043,883 3,046,274 2,648,748 2,390 0.1 % Charges for Services:16-19 General Government Services 16 60,700 35,000 41,494 46,237 6,494 18.6 % Public Safety 16 585,700 277,850 474,227 342,281 196,377 70.7 % Development Services Fees 17 1,007,600 548,200 599,939 615,814 51,739 9.4 % Culture and Recreation 18 2,319,680 1,245,000 1,229,849 1,251,074 (15,151)(1.2)% Fines and Penalties 19-20 876,100 448,900 443,925 449,907 (4,975)(1.1)% Fees/Charges/Fines sub-total 13,312,390$ 6,651,033$ 6,944,351$ 6,570,256$ 293,318$ 4.4 % Interest and Investment Earnings 20-21 69,000$ 32,000$ 96,597$ 54,747$ 64,597$ 201.9 % Rents and Leases 20-21 715,300 318,600 447,860 373,158 129,260 40.6 % Contributions and Donations 20-21 35,000 15,800 20,545 11,818 4,745 30.0 % Other Miscellaneous 20-21 227,500 118,100 123,142 160,111 5,042 4.3 % Transfers In 84,000 76,500 76,500 99,000 0 0.0 % Insurance Recoveries - Capital & Operating 25,000 12,495 20,086 37,572 7,591 60.8 % Other Revenues sub-total 1,155,800$ 573,495$ 784,730$ 736,406$ 211,235$ 36.8 % Total Operating Revenues 66,713,790$ 34,030,728$ 34,820,302$ 32,529,429$ 789,574$ 2.3 % Operating Expenditures Council & Mayor 1,171,418$ 568,000$ 562,892$ 495,405$ 5,108$ 0.9 % Administration 1,527,533 763,800 663,014 548,073 100,786 13.2 % Community & Human Services 1,103,040 453,900 405,631 438,403 48,269 10.6 % Municipal Court & Probation 2,502,954 459,977 336,192 314,914 123,785 26.9 % Human Resources 1,409,871 678,100 647,849 612,047 30,251 4.5 % Finance 1,500,893 761,400 739,290 589,442 22,110 2.9 % City Attorney 2,279,653 1,114,400 972,793 937,549 141,607 12.7 % Community Development 4,798,583 2,369,700 2,087,341 2,027,342 282,359 11.9 % Jail - SCORE 4 3,953,150 1,976,575 1,581,197 2,009,736 395,378 20.0 % Police 26,652,517 13,043,700 12,217,562 11,463,766 826,138 6.3 % Public Works 3,547,418 1,813,500 1,330,320 1,518,788 483,180 26.6 % Parks, Arts & Recreation 12,235,387 5,971,100 5,714,750 5,452,246 256,350 4.3 % Streets 3,798,094 1,689,800 1,684,953 1,447,978 4,847 0.3 % Non-Departmental 6,398,215 2,722,967 2,203,572 1,313,029 519,395 19.1 % Total Operating Expenditures 72,878,726$ 34,386,919$ 31,147,357$ 29,168,718$ 3,239,562$ 9.4 % Page Ref 2017 2017 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 2Page 47 of 87 Quarterly Financial Report Through Q2-2017 3 Executive Summary This Executive Summary provides an overview of the City’s overall financial position for the fiscal period ending June 30, 2017, reflecting financial data available as of July 25, 2017. General Fund: Through June 2017, General Fund revenues totaled $34.8 million compared to a budget of $34.0 million, and were $790,000 (2.3%) higher than budget expectations. Some notable variances to budget year-to-date include: • Property tax collections through Q2-2017 totaled $11.0 million, which was 0.7% or $71,000 above budget expectations and exceeded collections through Q2-2016 by $1.5 million, or 16.0%. This year-over-year increase in property tax collections is attributable to an increase in assessed valuation and the use of banked capacity. [page 6] • General Fund retail sales tax revenues totaled $7.3 million, and exceeded collections through Q2-2016 by $38,000, or 0.5%. The primary area of significant increase in sales activity compared to collections through Q2-2016 was in the automotive category; this was offset by reductions in the services category. [pages 7-8] • The other taxes category performed favorably through Q2-2017, with revenues totaling $6.8 million compared to a budget of $6.6 million. City utility tax revenues exceeded budget by $137,000, or 8.0%. Electric and natural gas revenues collected through June exceeded budget by $121,000 and $58,000 respectively. In addition, leasehold excise taxes collected were $151,000 above budget due to a $146,000 tax receipt for the Emerald Downs property, which is tribally owned. Through this reporting period, cable utility tax revenues were $237,000 below budget, although this is just a timing issue where the Q2-2017 revenues associated with the cable utility tax (about $265,000) were not received until July 2017. [pages 9-12] • Building permit revenue collected through Q2-2017 totaled $714,000 compared to a year-to-date budget of $727,000. [page 14] • Public safety revenues collected through Q2-2017 totaled $474,000 compared to a budget of $278,000. Revenues collected through the first half of 2017 were $132,000 higher than what was collected through the first half of 2016. This increased revenue is due to additional contracted Police Officer extra duty security services (which are reimbursed by the hiring contractor) compared to the same period last year. [page 16] • Development services fee revenues collected through June 2017 totaled $600,000, and ended the quarter $52,000, or 9.4%, higher than budget expectations. This was predominately due to higher than budgeted revenues collected year-to-date for plan check activity. [page 17] • Rents and leases revenues ended the period $129,000 higher than budget. This favorable variance is due to a combination of factors, including increased rentals of City-owned facilities such as the new Community and Events Center as well as increased deposits held for rentals. Also, effective in 2017, the City increased inventory of parking spaces, some of which were rented on a 12-month term. [pages 20-21] 3Page 48 of 87 Quarterly Financial Report Through Q2-2017 4 General Fund expenditures through the first half of 2017 totaled $31.1 million compared to a year-to-date budget of $34.4 million, representing a 9.4% favorable variance. All of the General Fund departments operated within their allocated budget through June 2017. The year to date actuals for SCORE do not include the June payment of $316,000, which was paid in August; this reduces the apparent favorable year to date variance from $395,000 to $79,000. Year-to-date General Fund expenditures ended the period $2.0 million, or 6.8% higher than expenditures through Q2-2016. Of the $2.0 million increase compared to the first half of 2016, $1.2 million is related to higher costs for salary and benefits. Several factors contributed to the increase in costs, including an increase in employee salaries due to COLA (cost of living allowance) and labor contracts with predefined COLAs; an increase in the cost of providing medical benefits to employees; and employee retirement payouts. The remaining year-over- year increase is primarily seen in interfund expenditures for fleet and IT, which have increased compared to 2016. Street Funds: The City’s three street funds are special revenue funds where the revenue sources and expenditures are legally restricted. These funds are used for street capital construction projects, local street repair and arterial street repair and preservation projects. Through Q2- 2017, Arterial Street Fund revenues totaled $2.8 million as compared to collections of $1.2 million through Q2-2016; expenditures totaled $3.5 million as compared to expenditures of $1.5 million through Q2-2016. Local Street Fund revenues exceeded budget expectations thus far this year by $430,000, or 46.4%, due to higher than anticipated sales tax revenues from local construction projects; last year’s collections through Q2 totaled $1.2 million. Expenditures were $210,000 as compared with $276,000 through Q2-2016. Lastly, the Arterial Street Preservation Fund revenues totaled $1.2 million as compared to $1.1 million through Q2-2016, while expenditures totaled $830,000 versus $356,000 through this time last year. Historically, the majority of expenditures in all three street funds occur during the second half of the year when weather conditions are optimal for pavement construction. [pages 24–29] $33.9 M $34.4 M $34.8 M $31.1 M $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 Revenues Expenditures $ Millions General Fund Q2-2017 Revenues vs. Expenditures 2017 YTD Actual 2017 YTD Budget 4Page 49 of 87 Quarterly Financial Report Through Q2-2017 5 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 Q2-2017, the Water Fund experienced operating income before depreciation of $2.4 million compared to $2.1 million in Q2-2016. This variance is largely due to lower expenditures in 2017 compared to 2016, during which the City purchased water from the City of Tacoma. The Sewer Fund ended the quarter with operating income before depreciation of $1.3 million versus $1.2 million in Q2-2016. The Sewer-Metro Fund operating expenditures exceeded revenues by $165,000 as compared to $192,000 in Q2-2016. This is generally a byproduct of King County’s billing process, which uses statistics averaged over prior periods to determine charges to the City; operating revenues were $440,000 higher than Q2-2016 and in line with budget predictions. Lastly, the Stormwater Fund ended the quarter with operating income before depreciation of $1.7 million compared to $1.5 million through Q2-2016. [pages 31–32] 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-end expenditures. [page 33] Investment Portfolio: The City’s total cash and investments at the end of the second quarter of 2017 totaled $135.8 million, compared to $127.5 million at the end of the first quarter of 2017. [attachment] 5Page 50 of 87 Quarterly Financial Report Through Q2-2017 6 General Fund Revenues The combined total of property, sales/use, utility, gambling, and admissions taxes provides approximately 80% of all resources supporting general governmental activities. The following section provides additional information on these sources. Property Tax collections through Q2-2017 totaled $11.0 million, which is 0.7% or $71,000 above budget expectations. Property tax collections through Q2-2017 exceeded amounts through the same period last year by $1.5 million, or 16.0%. This year-over-year increase is attributable to an increase in assessed valuation and the use of banked capacity. The majority of property taxes are collected during the months of April and October, coinciding with the due dates for the County property tax billings. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 $22.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsProperty Taxes 2017 Budget 2017 YTD Actual 2016 Actual $12.9 $14.4 $15.8 $17.2 $17.9 $11.0 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 2012 2013 2014 2015 2016 2017 YTDMillionsProperty Tax Revenue Actuals 6Page 51 of 87 Quarterly Financial Report Through Q2-2017 7 Sales tax collections through Q2-2017 totaled $8.5 million, of which $7.3 million was distributed to the General Fund and $1.2 million was distributed to the Local Street Fund (SOS) program.* Total sales tax revenue distributions to the General Fund through Q2-2017 exceeded collections through Q2-2016 by $38,000, or 0.5%. * Beginning in 2013, Local Street Fund (Fund 103) street repairs have been funded from sales taxes on construction. The total amount transferred through Q2-2017 was $1,196,893. The graphic above presents sales taxes under the current policy. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsSales & Use Tax (Net of Revenue from Construction) 2017 Budget 2017 YTD Actual 2016 Actual $13.0 $12.4 $13.8 $14.5 $14.6 $7.3 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 2012 2013 2014 2015 2016 2017 YTDMillionsSales and Use Tax General Fund Only Actuals 7Page 52 of 87 Quarterly Financial Report Through Q2-2017 8 The f ollowing table breaks out the City’s base sales taxes, excluding Criminal Justice and Annexation Credit Sales Tax, by major business sector. Total sales tax revenue collected in Q2-2017 exceeded prior year collections by $201,000, or 2.4%. The business sector showing the largest increase in General Fund revenues compared to last year was in the construction and automotive categories. Sales tax revenue on construction, which is transferred to the Local Street Fund (Fund 103) for local street repair and maintenance, totaled $1,196,893, which is $164,000 more than what was collected through Q2-2016 and is $423,000 higher than budget. 2016 2017 Component Group Actual Actual Amount Construction 1,033,228$ 1,196,893$ 163,665$ 15.8 % Manufacturing 419,006 374,489 (44,517)(10.6)% Transportation & Warehousing 46,904 47,245 341 0.7 % Wholesale Trade 603,496 641,660 38,164 6.3 % Automotive 1,780,400 1,899,945 119,545 6.7 % Retail Trade 2,436,545 2,426,714 (9,831)(0.4)% Services 1,993,662 1,866,349 (127,314)(6.4)% Miscellaneous (21,614) 39,785 61,399 (284.1)% YTD Total 8,291,628$ 8,493,080$ 201,452$ 2.4 % Comparison of Sales Tax Collections by SIC Group Through June Change from 2016 Percentage $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 $2.2 $2.4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsSales Tax on Construction Transfer 2017 Budget 2017 YTD Actual 2016 Actual 8Page 53 of 87 Quarterly Financial Report Through Q2-2017 9 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 Q2-2017 totaled $5.4 million and exceeded year-to-date budget by $276,000, or 5.4%. Some utilities, such as Water, have cyclical revenue streams due mainly to weather; this results in cyclical receipts of the associated utility taxes. $1.9 $1.8 $2.3 $2.3 $1.2 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2012 2013 2014 2015 2016 2017 YTDMillionsSales Tax On Construction Revenue Actuals $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsUtility Tax 2017 Budget 2017 YTD Actual 2016 Actual 9Page 54 of 87 Quarterly Financial Report Through Q2-2017 10 Favorable variances in City interfund utility tax, electric tax, natural gas, and solid waste tax revenues offset lower than expected collections for telecommunications. 2016 2017 2017 Utility Tax Type YTD Actual YTD Budget YTD Actual Amount Amount City Interfund Utility Taxes 1,838,188$ 1,718,300$ 1,855,464$ $ 17,276 0.9 % $ 137,164 8.0 % Electric 1,915,419 1,877,500 1,998,132 82,713 4.3 %120,632 6.4 % Natural Gas 644,107 669,300 727,262 83,155 12.9 %57,962 8.7 % Telephone 767,726 754,000 711,186 (56,540) (7.4)%(42,814) (5.7)% Solid Waste (external)61,778 60,000 63,427 1,650 2.7 %3,427 5.7 % YTD Total 5,227,218$ 5,079,100$ 5,355,471$ $ 128,254 2.5 % $ 276,371 5.4 % Through June 2017 Utility Tax by Type 2017 vs. 2016 Actual 2017 vs. Budget Percentage Percentage $9.2 $9.5 $10.0 $9.7 $10.0 $5.4 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 2012 2013 2014 2015 2016 2017 YTDMillionsUtility Tax Revenues Actuals 10Page 55 of 87 Quarterly Financial Report Through Q2-2017 11 Cable Franchise Fees, which are collected quarterly, totaled $502,000 and exceeded budget by $21,000, or 4.4%. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterThousandsCable Franchise Fee 2017 Budget 2017 YTD Actual 2016 Actual $0.8 $0.9 $0.9 $0.9 $1.0 $0.5 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 2012 2013 2014 2015 2016 2017 YTDMillionsCable Franchise Fee Actuals 11Page 56 of 87 Quarterly Financial Report Through Q2-2017 12 Cable Utility Tax (New in 2017). In September 2016, City Council approved Ordinance No. 6620, which increased the Cable Utility Tax from 1.0% to 6.0%, with the entirety of the new tax amount benefitting the General Fund. This tax became effective on January 1, 2017 and is collected quarterly. Although this revenue stream appears to be unfavorable to budget through Q2-2017, this is just a timing issue whereas the revenues for April through June 2017 (approximately $265,000) were collected in July 2017. Both the Q1 and Q2 distributions, totaling $528,000, exceeded the budget expectation of $250,000 per quarter. Licenses and Permits include business licenses, building permits, plumbing, electric and other licenses and permit fees. Building permit fees and business licenses make up about 70% of the annual budgeted revenue in this category. Business license revenues collected through June 2017 totaled $112,000, compared to a budget of $100,000. The first graphic on the following page reflects the timing of payments by business owners, where the majority of business license payments are typically collected during the first two months of the year and the last month of the year. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterThousandsCable Utility Tax -New 2017 2017 Budget 2017 YTD Actual 2016 Actual 12Page 57 of 87 Quarterly Financial Report Through Q2-2017 13 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsBusiness Licenses 2017 Budget 2017 YTD Actual 2016 Actual $232 $236 $171 $282 $225 $112 $0 $50 $100 $150 $200 $250 $300 $350 2012 2013 2014 2015 2016 2017 YTDThousandsBusiness License Revenues Actuals 13Page 58 of 87 Quarterly Financial Report Through Q2-2017 14 Building permit revenues collected through June totaled $714,000, compared to a year-to-date budget of $727,000. Through Q2-2017, a total of 398 building permits were issued compared to 436 building permits issued through Q2-2016. Major projects contributing to the revenues this quarter include building permits for Boeing, tenant improvements at the Outlet Collection for the new Dave and Buster’s restaurant, and numerous single family housing permits - most notably in Canyon Creek, Calla Crest, Wyncrest and Hazelview. Of the $400,000 in building permit revenues collected in Q2-2017, 34% was attributable to commercial projects in the City and the remaining 66% was predominately single family housing permits. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 $2.2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsBuilding Permits 2017 Budget 2017 YTD Actual 2016 Actual $1.7 $2.1 $1.5 $1.2 $2.0 $0.7 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2012 2013 2014 2015 2016 2017 YTDMillionsBuilding Permits Actuals 14Page 59 of 87 Quarterly Financial Report Through Q2-2017 15 Intergovernmental revenues include grants (direct and indirect Federal, state and local), compact revenue from the Muckleshoot Indian Tribe (MIT), intergovernmental service revenues, and state shared revenues. Collections through Q2-2017 totaled $3.0 million and were $2,000, or 0.1% higher than budget. Favorable variances in Criminal Justice High Crime revenues and Muckleshoot Casino Service reimbursement are offset by the reduced Federal grant revenues received year-to-date. Federal grant reimbursements to date are significantly lower than budget expectations primarily due to delayed hiring of the Police Officers who are to be partially funded by the Federal COPS grant. 2016 2017 2017 Revenue YTD Actual YTD Budget YTD Actual Amount Amount Federal Grants 95,083$ 175,900$ 72,562$ $ (22,521)(23.7)% $ (103,338)(58.7)% State Grants 80,896 87,900 70,234 (10,662) (13.2)%(17,666) (20.1)% Interlocal Grants 2,500 65,000 65,000 62,500 0.0 %0 0.0 % Muckleshoot Casino Services 324,419 331,333 399,837 75,418 23.2 %68,504 20.7 % Intergovernmental Service 0 0 0 0 N/A %0 N/A % State Shared Revenues: Streamlined Sales Tax 962,037 953,850 952,157 (9,880) (1.0)%(1,693) (0.2)% Motor Vehicle Fuel Tax 538,381 579,800 533,050 (5,331) (1.0)%(46,750) (8.1)% Criminal Justice - High Crime 0 192,000 286,498 286,498 N/A %94,498 49.2 % Criminal Justice - Population 10,151 11,800 10,658 507 5.0 %(1,142) (9.7)% Criminal Justice - Special Prog.37,115 39,200 38,776 1,661 4.5 %(424) (1.1)% Marijuana Enforcement 9,757 17,000 19,665 9,908 101.6 %2,665 15.7 % State DUI 5,907 6,000 5,877 (31) (0.5)%(123) (2.1)% Fire Insurance Tax 76,569 75,000 78,078 1,509 N/A %3,078 4.1 % Liquor Excise 180,280 183,600 188,473 8,194 4.5 %4,873 2.7 % Liquor Profit 325,653 325,500 325,408 (245) (0.1)%(92)(0.0)% Total State Shared:2,145,849 2,383,750 2,438,640 292,790 13.6 %54,890 2.3 % YTD Total 2,648,748$ 3,043,883$ 3,046,274$ 397,526$ 15.0 %2,390$ 0.1 % Through June 2017 Intergovernmental Revenues (Grants, Entitlements & Services) 2017 vs. 2016 Actual 2017 vs. Budget % Change % Change $5.7 $4.8 $5.1 $5.3 $5.7 $3.0 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 2012 2013 2014 2015 2016 2017 YTDMillionsIntergovernmental Revenues (Grants, Entitlements & Services) Actuals 15Page 60 of 87 Quarterly Financial Report Through Q2-2017 16 Charges for Services consist of general governmental service charges, public safety charges, development service fees, and cultural & recreation fees. Overall, charges for services collected through June 2017 totaled $2.3 million compared to a budget of $2.1 million, representing a favorable variance of $239,000, or 11.4%. General governmental revenues collected through June 2017 totaled $41,000, compared to a budget of $35,000. 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. This also includes revenues generated for reimbursement from the Muckleshoot Indian Tribe (MIT) for a full-time dedicated Police Officer and associated expenditures. Public safety revenues collected through Q2-2017 totaled $474,000 compared to a budget of $278,000. Revenues collected through the first half of 2017 were $132,000 higher than what was collected through Q2-2016 predominately due to additional contracted Police Officer extra duty security services (which are reimbursed by the hiring contractor) compared to the same period last year. 2016 2017 2017 Revenue YTD Actual YTD Budget YT D Actual Amount Amount General Government 46,237$ 35,000$ 41,494$ $ (4,743)(10.3)% $ 6,494 18.6 % Public Safety 342,281 277,850 474,227 131,946 38.5 %196,377 70.7 % Development Services 615,814 548,200 599,939 (15,875) (2.6)%51,739 9.4 % Culture & Recreation 1,251,074 1,245,000 1,229,849 (21,224) (1.7)%(15,151) (1.2)% YTD Total 2,255,406$ 2,106,050$ 2,345,509$ 90,103$ 4.0 % $ 239,459 11.4 % Through June 2017 Charges for Services by Type 2017 vs. 2016 Actual 2017 vs. Budget Percentage Percentage $3.6 $3.3 $3.9 $4.3 $4.1 $2.3 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2012 2013 2014 2015 2016 2017 YTDMillionsCharges for Services by Type Actuals 16Page 61 of 87 Quarterly Financial Report Through Q2-2017 17 Development services fee collections, which primarily consist of plan check fees, totaled $600,000 and ended the quarter $52,000, or 9.4%, higher than budget expectations. Plan check revenues collected through Q2-2017 totaled $464,000 as compared with $453,000 collected the same period last year. Plan check revenues collected in Q2-2017 were primarily from commercial projects, including a large distribution center on 287th Street, Multicare tenant improvements, and Boeing. In addition, several single family housing plans were reviewed – most notably in the Calla Crest and Hazelview housing developments. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsDevelopment Service Fees 2017 Budget 2017 YTD Actual 2016 Actual $1.2 $1.1 $1.1 $1.4 $1.0 $0.6 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 2012 2013 2014 2015 2016 2017 YTDMillionsDevelopment Service Fees Actuals 17Page 62 of 87 Quarterly Financial Report Through Q2-2017 18 Culture and recreation revenues collected through Q2-2017 totaled $1.2 million, and are $15,000 (or 1.2%) below budget expectations. The majority of these revenues are derived from greens fees and pro shop sales at the Auburn Golf Course, recreational classes, athletic league fees, and special events. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 $2.2 $2.4 $2.6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsCulture & Recreation 2017 Budget 2017 YTD Actual 2016 Actual $2.0 $2.1 $2.2 $2.3 $2.3 $1.2 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 2012 2013 2014 2015 2016 2017 YTDMillionsCulture & Recreation Revenues Actuals 18Page 63 of 87 Quarterly Financial Report Through Q2-2017 19 Fines & Penalties include traffic and parking 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. Total revenues collected through Q2-2017 totaled $444,000 and were $5,000, or 1.1%, less than budget. 2016 2017 2017 Month YTD Actual YTD Budget YTD Actual Amount Amount Civil Penalties 5,151$ 6,200$ 4,578$ $ (573)(11.1)% $ (1,622)(26.2)% Civil Infraction Penalties 235,442 246,600 253,216 17,774 7.5 %6,616 2.7 % Redflex Photo Enforcement 10,849 0 6,063 (4,786) (44.1)%6,063 N/A % Parking Infractions 70,624 74,000 74,384 3,760 5.3 %384 0.5 % Criminal Traffic Misdemeanor 24,757 23,200 28,366 3,609 14.6 %5,166 22.3 % Criminal Non-Traffic Fines 22,156 21,000 13,824 (8,332) (37.6)%(7,176) (34.2)% Criminal Costs 29,751 22,400 25,204 (4,547) (15.3)%2,804 12.5 % Non-Court Fines & Penalties 51,178 55,500 38,292 (12,886) (25.2)%(17,208) (31.0)% YTD Total 449,907$ 448,900$ 443,925$ $ (5,981)(1.3)% $ (4,975)(1.1)% Through June 2017 Fines & Penalties by Type 2017 vs. 2016 Actual 2017 vs. Budget Percentage Percentage $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 $0.8 $0.9 $1.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFines & Penalties 2017 Budget 2017 YTD Actual 2016 Actual 19Page 64 of 87 Quarterly Financial Report Through Q2-2017 20 Miscellaneous revenues consist of investment earnings, income from facility rentals, contributions & donations, and other miscellaneous income including the quarterly purchasing card (P-card) rebate monies. Total revenues collected in this category through Q2-2017 totaled $688,000 and exceeded budget expectations by $204,000. Rents and leases revenue through June 2017 totaled $448,000 compared to prior year actuals of $373,000. The majority of the year-over-year increase was seen in miscellaneous parks unearned revenue. Due to an increase in facility rentals, the miscellaneous parks unearned revenue (deposits) through Q2-2017 increased by $52,000 compared to collections through Q2- 2016. In addition, facilities rental revenue realized a $28,000 year-over-year increase due primarily to the opening of the new Community and Events Center. Lastly, because additional inventory of parking spaces were added in 2017, parking revenues collected year-to-date through June increased by $12,000 compared to collections through June 2016. $1.6 $1.4 $1.2 $0.9 $0.9 $0.4 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 2012 2013 2014 2015 2016 2017 YTDMillionsFines & Penalties Actuals 2016 2017 2017 Month YTD Actual YTD Budget YTD Actual Amount Amount Interest & Investments 54,747$ 32,000$ 96,597$ 41,850$ 76.4 %64,597$ 201.9 % Rents & Leases 373,158 318,600 447,860 74,702 20.0 %129,260 40.6 % Contributions & Donations 11,818 15,800 20,545 8,727 73.8 %4,745 30.0 % Other Miscellaneous Revenue 160,111 118,100 123,142 (36,969)(23.1)%5,042 4.3 % YTD Total 599,833$ 484,500$ 688,144$ 88,310$ 14.7 %203,644$ 42.0 % Miscellaneous Revenues by Type Through June 2017 2017 vs. 2016 2017 vs. Budget Percentage Percentage 20Page 65 of 87 Quarterly Financial Report Through Q2-2017 21 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 Q2-2017 totaled $1.7 million, and exceeds budget expectations by $337,000. Real estate sales in the City of Auburn in Q2-2017 represent the sale of both commercial properties and numerous single family residences. The commercial sales include the sale of a hotel, vacant land, retail buildings and a warehouse building. $0.8 $0.7 $1.0 $1.0 $1.2 $0.7 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 2012 2013 2014 2015 2016 2017 YTDMillionsMiscellaneous Revenues Actuals 2016 2017 2017 Month Actual Budget Actual Amount Amount Jan 339,594$ 192,600$ 224,044$ (115,550)$ (34.0)%31,444$ 16.3 % Feb 286,943 166,800 249,683 (37,261) (13.0)%82,883 49.7 % Mar 293,361 170,800 326,044 32,683 11.1 %155,244 90.9 % Apr 574,925 254,200 234,480 (340,445) (59.2)%(19,720) (7.8)% May 255,078 249,000 299,251 44,173 17.3 %50,251 20.2 % Jun 329,081 317,200 353,807 24,727 7.5 %36,607 11.5 % Jul 360,857 Aug 673,012 Sep 338,340 Oct 249,714 Nov 321,895 Dec 262,543 YTD Total 2,078,982$ 1,350,600$ 1,687,310$ (391,673)$ (18.8)%336,710$ 24.9 % Annual Total 4,285,344$ 2,810,000$ Real Estate Excise Tax Revenues June 2017 Percentage 2017 vs. 2016 2017 vs. Budget Percentage 21Page 66 of 87 Quarterly Financial Report Through Q2-2017 22 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsReal Estate Excise Tax 2017 Budget 2017 YTD Actual 2016 Actual $1.8 $2.2 $2.5 $4.6 $4.3 $1.7 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 2012 2013 2014 2015 2016 2017 YTDMillionsReal Estate Excise Tax Revenues Actuals 22Page 67 of 87 Quarterly Financial Report Through Q2-2017 23 Pet Licensing Through Q2-2017, 2,178 pet licenses were sold, resulting in $56,315 in revenue. Through Q2- 2016, 2,342 licenses were sold, resulting in $66,645 in revenue. 0 500 1,000 1,500 2,000 2,500 $0 $2 $4 $6 $8 $10 $12 $14 $16 JanFebMarAprMayJunJulAugSepOctNovDecNumber of Licenses IssuedLicense Revenue( thousands )Pet Licensing Revenues vs Licenses Sold 2017 vs 2016 2016 License Revenue 2017 License Revenue 2016 Licenses Issued 2017 Licenses Issued 0 1,000 2,000 3,000 4,000 5,000 6,000 $0 $20 $40 $60 $80 $100 $120 $140 JanFebMarAprMayJunJulAugSepOctNovDecNumber of Licenses IssuedLicense Revenue( thousands )Cumulative Pet Licensing Revenue & Licenses Issued 2017 vs 2016 2017 License Revenue 2017 Licenses Issued 2016 Licenses Issued 23Page 68 of 87 Quarterly Financial Report Through Q2-2017 24 Street Funds This section provides a financial overview of the City’s three street funds for the quarter ending June 30, 2017. The City’s three street funds include the Arterial Street Fund (Fund 102), the Local Street Fund (Fund 103), and the Arterial Street Preservation Fund (Fund 105). The capital project expenditures in these funds are budgeted primarily based on historical actual revenue and expenditure distributions for the prior six years. Fund 102 – Arterial Street Fund The Arterial Street Fund is a Special Revenue Fund that is funded by transportation grants, traffic impact fees, a portion of the City’s gas tax receipts, Public Works Trust Fund loans, developer contributions, and other sources. As of June 30, 2017 there were 28 separate street projects budgeted in this fund for 2017. Budget Amendment No. 1, adopted April 3, 2017, added or increased funding for several major projects in this fund, increasing budgeted revenues and expenditures significantly. Through June 30, 2017, revenues collected totaled $2.8 million and compare to collections of $1.2 million through Q2-2016. This variance is largely due to the timing of capital expenditures and their subsequent reimbursement via federal grants. Total expenditures through Q2-2017 were $3.5 million and compare to $1.5 million spent through the same period last year. The increase from YTD 2016 to 2017 is based on increased construction activity, as highlighted in the table below and the associated graph . Fund 102 - Arterial Street 2016 Summary of Sources and Uses Annual YTD YTD YTD Report Period: June 2017 Budget Budget Actual Actual Amount Revenues Federal Grants 7,054,082$ 2,256,780$ 1,842,767$ 47,465$ (414,014)$ (18.3)% State Grants 2,995,210 998,403 190,278 99,350 (808,126) (80.9)% Motor Vehicle Fuel and Multimodal Taxes 583,000 281,097 265,954 290,906 (15,143) (5.4)% Developer Contributions 809,221 286,407 46,233 - (240,174) (83.9)% Miscellaneous Revenue 466,191 155,397 - 64,862 (155,397) (100.0)% Other Governmental Agencies - - - - - Public Works Trust Fund Loans - - - - - Operating Transfer In 3,420,622 1,368,499 470,254 712,702 (898,245) (65.6)% Investment Income 2,600 1,438 4,723 3,132 3,285 228.4 % Total Revenues 15,330,926$ 5,348,022$ 2,820,209$ 1,218,417$ (2,527,812)$ (47.3)% Expenditures Salary and Benefits 285,000$ 133,685$ 354,273$ 235,491$ (220,588)$ (165.0)% Capital Outlay 15,658,112 4,966,161 2,885,700 1,012,136 2,080,461 41.9 % Subtotal - Capital Project Expenditures 15,943,112 5,099,846 3,239,973 1,247,626 1,859,873 36.5 % Services and Charges 285,000 80,577 36,068 30,036 44,509 55.2 % Interfund Payments for Services 76,681 38,341 38,340 37,278 1 0.0 % Debt Service Principal and Interest 209,511 209,511 209,511 210,205 0 0.0 % Operating Transfer Out 15,046 5,792 6,139 - (347) (6.0) Total Expenditures 16,529,350$ 5,434,067$ 3,530,031$ 1,525,145$ 1,904,036$ 35.0 % Net Change in Fund Balance (1,198,424)$ (86,046)$ (709,822)$ (306,728)$ (623,776)$ 724.9 % Beg. Fund Balance, January 2017 2,529,388$ Net Change in Fund Balance, June 2017 (709,822) Ending Fund Balance, June 2017 1,819,566$ 2017 Budgeted Ending Fund Balance 1,330,964$ 2017 2017 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 24Page 69 of 87 Quarterly Financial Report Through Q2-2017 25 This table presents the status of the projects with the most significant impacts on this fund: Notes: • W. Main St. Multimodal Corridor & ITS Improvements is nearing completion. • S 277th Street Corridor and AWS Corridor Safety Improvement projects are currently under construction. Name Annual Budget YTD Actual Remaining W. Main St Multimodal Corridor & ITS Imp $1.6M $1.2M $0.3M S. 277th St Corridor Improvements $4.3M $0.5M $3.9M AWS Corridor Safety Imp. -- Muckleshoot Pl.$3.3M $0.9M $2.4M All Other Projects (25 Others Budgeted)$6.8M $0.6M $6.1M Total $15.9M $3.2M $12.7M Fund 102 - Arterial Street Capital Projects Status 25Page 70 of 87 Quarterly Financial Report Through Q2-2017 26 Fund 103 – Local Street Fund The Local Street Fund is a Special Revenue Fund where the revenue from sales taxes on construction are used for local street preservation. Through Q2-2017 the revenues in this fund totaled $1.4 million, exceeding budget expectations by $430,000 due to higher than anticipated sales tax revenues from local construction projects. This compares to collections of $1.2 million through Q2-2016. Total expenditures through Q2 were $210,000 and compare to expenditures of $276,000 through Q2-2016. Historically, well over half of this fund’s annual expenditures occur in the final four months of each year due to the weather sensitivity of pavement construction (this work needs to be done primarily in the summer and early fall). Highlighted in the table below and the following graph are the subset of the fund’s total expenditures related to capital projects. Fund 103 - Local Street Fund 2016 Summary of Sources and Uses Annual YTD YTD YTD Report Period: June 2017 Budget Budget Actual Actual Amount Revenues Sales Tax on Construction 1,750,000$ 774,167$ 1,196,893$ 1,033,228$ 422,726$ 54.6 % Operating Transfer In 150,000 150,000 150,000$ 150,000 - 0.0 % Interest Earnings 9,100 4,175 11,881$ 5,246 7,706 184.6 % Total Revenues 1,909,100$ 928,342$ 1,358,774$ 1,188,474$ 430,432$ 46.4 % Expenditures Salary and Benefits 148,568$ 67,925$ 64,852$ 59,636$ 3,073$ 4.5 % Capital Outlay 2,933,969 546,148 133,420 209,596 412,728 75.6 % Subtotal - Capital Project Expenditures 3,082,537 614,073 198,272 269,233 415,801 67.7 % Services and Charges 25,680 8,674 294 407 8,379 96.6 % Interfund Payments for Services 11,925 5,963 5,958 6,120 5 0.1 % Operating Transfer Out 11,051 3,795 5,700 - (1,905) (50.2) Total Expenditures 3,131,193$ 632,504$ 210,224$ 275,760$ 422,280$ 66.8 % Net Change in Fund Balance (1,222,093)$ 295,838$ 1,148,550$ 912,714$ 852,712$ 288.2 % Beg. Fund Balance, January 2017 2,115,236$ Net Change in Fund Balance, June 2017 1,148,550 Ending Fund Balance, June 2017 3,263,786$ 2017 Budgeted Ending Fund Balance 893,143$ 2017 2017 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 26Page 71 of 87 Quarterly Financial Report Through Q2-2017 27 This table presents the status of the projects with the most significant impacts on this fund: Notes: • 2016 Local Street Reconstruction Project received Final Acceptance by the City Council on April 17, 2017 and is now complete. • 2017 Local Street Reconstruction Project was awarded for construction by the City Council on July 3, 2017 and is currently under construction. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 MillionsFund 103 -Capital Project Expenditures 2017 YTD Budget 2017 YTD Actual 2016 YTD Actual 2017 YE Budget $3.1M 2016 YTD Actual $269K 2017 YTD Actual $198K *Data consists of capital outlays, salaries, and benefits. Name Annual Budget YTD Actual Remaining 2016 Local Street Pavement Reconst.$0.07M $0.06M $0.0M 2017 Local St. Reconst. & Preservation $2.87M $0.1M $2.8M Total $2.9M $0.13M $2.8M Fund 103 - Local Street Capital Projects Status 27Page 72 of 87 Quarterly Financial Report Through Q2-2017 28 Fund 105 – Arterial Street Preservation Fund The Arterial Street Preservation Fund is a Special Revenue Fund which is primarily funded by a 1.0% utility tax that was adopted by Council in 2008; these utility tax revenues are restricted for arterial street repair and preservation projects. Major projects budgeted within the Arterial Street Preservation Fund in 2017 include 15th Street NE/NW Preservation, Auburn Way North Preservation, and the B Street NW Reconstruction project. Through Q2-2017 revenues totaled $1.2 million and compare to collections of $1.1 million through Q2-1016. Total expenditures through Q2-2017 were $831,000, which compares to expenditures of $354,000 through Q2-2016. Historically, the majority of this fund’s expenditures occur in the second half of each year due to the weather sensitivity of pavement construction (this work needs to be done primarily in the summer and early fall). Highlighted in the table below and the following graph are the subset of the fund’s total expenditures related to capital projects. 28Page 73 of 87 Quarterly Financial Report Through Q2-2017 29 This table presents the status of the projects with the most significant impacts on the fund: Notes: • Auburn Way North Preservation is nearing completion. • B Street NW Reconstruction was awarded for construction by the City Council on June 19, 2017 and is currently under construction. • 15th Street NE/NW Preservation project construction will be delayed until 2018 due to the Puget Sound Regional Council’s (PSRC’s) modification of the Grant’s obligation year to FFY2018. This revision was part of a region wide effort to address federal grant funding restrictions for FY 2017, 2018, 2019 and 2020. $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 MillionsFund 105 -Capital Project Expenditures 2017 YTD Budget 2017 YTD Actual 2016 YTD Actual 2017 YE Budget $7.4M 2016 YTD Actual $188K 2017 YTD Actual $820K *Data consists of capital outlays,salaries and benefits Name Annual Budget YTD Actual Remaining 15th St NE/NW Preservation $1.5M $0.01M $1.5M Auburn Way North Preservation $1.7M $0.64M $1.1M B Street NW Reconstruction $2.7M $0.02M $2.7M All Other Projects (4 Others Budgeted)$1.4M $0.1M $1.3M Total $7.4M $0.8M $6.6M Capital Projects Status Fund 105 - Arterial Street Preservation 29Page 74 of 87 Quarterly Financial Report Through Q2-2017 30 Fund 124 – Mitigation Fees The Mitigation Fees Fund is a Special Revenue Fund funded from revenue from new development, which is assessed at the time applications are received for development activity. These funds are used to mitigate costs associated with City growth. Through Q2-2017, revenues were above budget expectations, at 66.8% of the annual budgeted amount. Expenditures were well below budget due to the timing of capital projects funded by these revenues, which historically occur during the second half of the year when conditions are more favorable for construction. Fund 124 - Mitigation Fees Summary of Sources and Uses Report Period Through:Ending Ending June 2017 Fund Balance Fund Balance Transportation Impact Fees 610,108$ 451,856$ 5,312,547$ 800,000$ 3,264,472$ 919,205$ Transportation Migitation Fees 72,337 - 336,614 - 30,000 134,550 Fire Impact Fees 109,789 - 409,600 100,000 50,000 350,000 Fire Mitigation Fees - - 81 - - 81 Parks Impact Fees 441,076 100,000 5,147,510 600,000 545,000 1,205,000 Parks Mitigation Fees - - 331,327 - - 330,300 School Impact Admin Fees 5,914 - 52,834 12,000 - 105,115 Wetland Mitigation Fees - - 68,835 - 31,570 37,030 Interest and Investment Income 43,870 - 43,870 8,200 - 8,200 Fees in Lieu of Improvements - - 122,525 - - - Operating Transfers - - - 400,000 - 400,000 Total 1,283,093$ 551,856$ 11,825,743$ 1,920,200$ 3,921,042$ 3,489,481$ Beginning Fund Balance, January 2017 5,490,323$ Net Change in Fund Balance, June 2017 731,238 Ending Fund Balance, June 2017 6,221,561$ 2017 Budgeted Ending Fund Balance 3,489,481$ YTD ACTUALS BUDGET Revenues Expenditures Revenues Expenditures 30Page 75 of 87 Quarterly Financial Report Through Q2-2017 31 Enterprise Funds Detailed income and expense statements for Enterprise and Internal Service funds can be found in the Appendices at the end of this report. The format changed in Q1-2016 and, in lieu of a working capital statement, there are now operating and, as applicable, capital fund reports for these funds showing budget, actuals, and variances. Operating funds house all the operating costs along with debt service and financing obligations. Capital funds show costs associated with capital acquisition and construction. Both the operating and capital funds have a working capital balance. This approach isolates those funds available for capital and cash flow needs for daily operations, and project managers will know exactly how much working capital is available for current and planned projects. Budget Amendment #6, adopted in July 2016, moved working capital from the operating funds to the capital funds along with all the other beginning fund balance adjustments. System development revenues previously credited to the operating funds are now directed to the corresponding capital funds. Through Q2-2017, the Water Utility had operating income before depreciation of $2.4 million as compared with $1.9 million through Q2-2016. The increase in operating income is largely due to lower expenditures in 2017 compared to 2016, during which the City purchased regional water from the City of Tacoma while four of the City’s six major production wells were being rehabilitated. Currently, with four wells and two springs providing the City’s water supply and the remaining two wells anticipated to return to service in early fall, minimal regional water purchases are anticipated for 2017. Water sales through Q2-2017 totaled 1.3 million hundred cubic feet (ccf), compared to 1.6 million ccf in 2016, representing a 13.8% decrease due to lower water consumption. This is part of a general trend of decreased year-over-year water consumption per account due largely to conservation efforts and appliance efficiency improvements. Additionally, the City has not provided water to Water District #111 since its contract was renegotiated. Revenues ended the quarter in line with budget expectations. 31Page 76 of 87 Quarterly Financial Report Through Q2-2017 32 The Sewer Utility finished Q2-2017 with operating income before depreciation of $1.3 million, approximately $100,000 greater than Q2-2016 due primarily to higher service revenues in 2017. The Sewer-Metro Utility ended the second quarter with operating income before depreciation of $165,000, as compared with $192,000 in Q1-2016. Variances in this fund are largely due to King County’s internal billing process, by which King County bills the City a flat rate each quarter based on the number of customers and consumption volume averaged over prior quarters. Therefore, Sewer-Metro generally experiences a loss early in the year when revenues trend low, and income later in the year when revenues trend higher. The Sewer-Metro Utility is expected to end the year with operating income, consistent with prior years. The Stormwater Utility ended Q2-2017 with operating income before depreciation of $1.7 million, compared with $1.5 million through Q2-2016. The difference is largely due to higher service revenues in 2017. The Cemetery Fund ended Q2-2017 with an operating income of $100,000 as compared with an operating income of $178,000 in through Q2-2016. This variance is mainly due to lower revenue from lot sales, which at $235,000 year-to-date are above average, but low compared to the previous two years, which were exceptional ($299,00 through Q2-2016). 32Page 77 of 87 Quarterly Financial Report Through Q2-2017 33 Internal Service Funds Operating expenditures within the Insurance Fund represent the premium cost pool that will be allocated monthly to other City funds over the course of 2017. As a result, this balance will gradually diminish each month throughout the year. No significant variances are reported in the Worker’s Compensation, Facilities, Innovation & Technology, or Equipment Rental Funds. Contact Information This report is prepared by the Finance Department. Additional financial information can also be viewed at our website: http://www.auburnwa.gov/. For any questions about this report please contact Shelley Coleman at scoleman@auburnwa.gov. 33Page 78 of 87 Investment Purchase Purchase Maturity Yield to Type Date Price Date Maturity State Investment Pool Various 128,494,910$ Various 0.98% KeyBank Money Market Various 6,043,749 Various 0.02% FNMA 3/11/2016 998,844 2/22/2019 1.20% LAKUTL 9/25/2013 235,919 11/1/2017 1.90% Total Cash & Investments 135,773,423$ 0.940% Investment Mix % of Total State Investment Pool 94.6%Current 6-month treasury rate 1.11% KeyBank Money Market 4.5%Current State Pool rate 0.98% US Treasury 0.0%KeyBank Money Market 0.02% FNMA 0.7% LAKUTL 0.2% 100.0% City of Auburn Investment Portfolio Summary June 30, 2017 Summary 34Page 79 of 87 SALES TAX SUMMARY JUNE 2017 SALES TAX DISTRIBUTIONS (FOR APRIL 2017 RETAIL ACTIVITY) 2016 Annual Total 2016 YTD 2017 YTD YTD 2016 Annual Total 2016 YTD 2017 YTD YTD NAICS CONSTRUCTION (Nov '15-Oct '16)(Nov '15-Apr '16)(Nov '16-Apr '17)% Diff NAICS AUTOMOTIVE (Nov '15-Oct '16)(Nov '15-Apr '16)(Nov '16-Apr '17)% Diff 236 Construction of Buildings 1,139,466 515,670 673,927 30.7%441 Motor Vehicle and Parts Dealer 3,409,019 1,664,133 1,771,383 6.4% 237 Heavy and Civil Construction 309,344 117,032 87,476 -25.3%447 Gasoline Stations 250,478 116,267 128,562 10.6% 238 Specialty Trade Contractors 843,470 400,526 435,490 8.7%TOTAL AUTOMOTIVE 3,659,497$ 1,780,400$ 1,899,945$ 6.7% TOTAL CONSTRUCTION 2,292,280$ 1,033,228$ 1,196,893$ 15.8%Overall Change from Previous Year 119,545$ Overall Change from Previous Year 163,665$ 2016 Annual Total 2016 YTD 2017 YTD YTD 2016 Annual Total 2016 YTD 2017 YTD YTD NAICS RETAIL TRADE (Nov '15-Oct '16)(Nov '15-Apr '16)(Nov '16-Apr '17)% Diff NAICS MANUFACTURING (Nov '15-Oct '16)(Nov '15-Apr '16)(Nov '16-Apr '17)% Diff 442 Furniture and Home Furnishings 185,234 83,307 c 100,407 20.5% 311 Food Manufacturing 3,278 1,679 2,777 65.4%443 Electronics and Appliances 220,553 124,066 104,146 -16.1% 312 Beverage and Tobacco Products 9,601 4,902 3,557 -27.4%444 Building Material and Garden 579,076 269,473 259,705 -3.6% 313 Textile Mills 415 176 93 -47.6%445 Food and Beverage Stores 397,177 189,338 a 181,069 -4.4% 314 Textile Product Mills 3,554 1,800 658 -63.4%446 Health and Personal Care Store 284,191 128,769 184,781 43.5% 315 Apparel Manufacturing 155 135 81 -40.4%448 Clothing and Accessories 1,136,431 570,439 551,953 d -3.2% 316 Leather and Allied Products 38 18 25 38.2%451 Sporting Goods, Hobby, Books 237,555 124,081 103,093 -16.9% 321 Wood Product Manufacturing 58,391 29,583 7,934 -73.2%452 General Merchandise Stores 1,017,905 541,376 521,330 -3.7% 322 Paper Manufacturing 8,047 3,892 8,455 117.3%453 Miscellaneous Store Retailers 473,398 246,150 237,153 -3.7% 323 Printing and Related Support 52,610 24,551 26,574 8.2%454 Nonstore Retailers 321,071 159,546 183,077 14.7% 324 Petroleum and Coal Products 2,145 1,706 339 -80.1%TOTAL RETAIL TRADE 4,852,592$ 2,436,545$ 2,426,714$ -0.4% 325 Chemical Manufacturing 10,183 3,283 8,548 160.4%Overall Change from Previous Year (9,831)$ 326 Plastics and Rubber Products 8,168 4,274 3,884 -9.1% 327 Nonmetallic Mineral Products 17,429 7,350 7,728 5.1% 331 Primary Metal Manufacturing 442 183 496 170.3%2016 Annual Total 2016 YTD 2017 YTD YTD 332 Fabricated Metal Product Manuf 29,409 15,642 17,694 13.1%NAICS SERVICES (Nov '15-Oct '16)(Nov '15-Apr '16)(Nov '16-Apr '17)% Diff 333 Machinery Manufacturing 16,461 7,468 7,961 6.6%51*Information 630,158 302,035 331,192 9.7% 334 Computer and Electronic Product 10,780 4,790 10,763 124.7%52*Finance and Insurance 110,728 53,595 58,155 8.5% 335 Electric Equipment, Appliances 445 296 449 51.6%53*Real Estate, Rental, Leasing 358,628 180,254 173,046 -4.0% 336 Transportation Equipment Man 471,441 274,212 242,605 -11.5%541 Professional, Scientific, Tech 237,656 120,212 121,951 1.4% 337 Furniture and Related Products 18,661 8,586 10,555 22.9%551 Company Management 330 170 12 -93.2% 339 Miscellaneous Manufacturing 39,437 24,478 13,312 -45.6%56*Admin. Supp., Remed Svcs 328,453 180,907 136,466 -24.6% TOTAL MANUFACTURING 761,091$ 419,006$ 374,489$ -10.6%611 Educational Services 50,026 23,226 25,448 9.6% Overall Change from Previous Year (44,517)$ 62*Health Care Social Assistance 91,643 46,740 40,364 -13.6% 71*Arts and Entertainment 156,301 95,282 41,752 -56.2% 72*Accommodation and Food Svcs 1,217,734 576,727 602,715 4.5% 2016 Annual Total 2016 YTD 2017 YTD YTD 81*Other Services 646,579 383,885 261,725 -31.8% NAICS TRANSPORTATION AND WAREHOUSING (Nov '15-Oct '16)(Nov '15-Apr '16)(Nov '16-Apr '17)% Diff 92*Public Administration 141,806 74,336 73,523 -1.1% 481 Air Transportation 1 1 2 61.8%TOTAL SERVICES 3,970,042$ 2,037,369$ 1,866,349$ -8.4% 482 Rail Transportation 24,331 5,932 18,157 206.1%Overall Change from Previous Year (171,020)$ 484 Truck Transportation 7,067 1,844 1,884 2.2% 485 Transit and Ground Passengers 114 24 -3,390 -14345.5% 488 Transportation Support 52,828 30,745 23,404 -23.9%2016 Annual Total 2016 YTD 2017 YTD YTD 491 Postal Service 274 141 149 5.8%NAICS MISCELLANEOUS (Nov '15-Oct '16)(Nov '15-Apr '16)(Nov '16-Apr '17)% Diff 492 Couriers and Messengers 301 191 524 173.5%000 Unknown 0 0 0 N/A 493 Warehousing and Storage 14,523 8,026 6,516 -18.8%111-115 Agriculture, Forestry, Fishing 5,534 2,805 2,953 5.3% TOTAL TRANSPORTATION 99,439$ 46,904$ 47,245$ 0.7%211-221 Mining & Utilities 29,410 11,944 10,901 -8.7% Overall Change from Previous Year 341$ 999 Unclassifiable Establishments 32,161 -32,039 b 25,932 -180.9% TOTAL SERVICES 67,105$ (17,289)$ 39,785$ -330.1% Overall Change from Previous Year 57,075$ 2016 Annual Total 2016 YTD 2017 YTD YTD NAICS WHOLESALE TRADE (Nov '15-Oct '16)(Nov '15-Apr '16)(Nov '16-Apr '17)% Diff 423 Wholesale Trade, Durable Goods 981,820 466,543 509,344 9.2%GRAND TOTAL 16,967,023 8,339,659 8,493,080 424 Wholesale Trade, Nondurable 281,166 135,871 129,173 -4.9%Overall Change from Previous Year 153,421 1.8% 425 Wholesale Electronic Markets 1,991 1,082 3,143 190.6% TOTAL WHOLESALE 1,264,976$ 603,496$ 641,660$ 6.3%Total June 2017 Sales Tax Distributions 1,323,690$ Overall Change from Previous Year 38,164$ Dollar Decrease from June 2016 (52,534)$ Per cent Decrease from June 2016 Includes Adjustments in excess of +/- $10,000.Comparisons: a. WA State Dept of Revenue audit adjustment to sales tax returns for period of November 2015 (adjustment: $10,572).June 2016 8,339,659 6,963,435 1,376,224$ b. WA State Dept of Revenue audit adjustment to sales tax returns for period of April 2016 (adjustment: - $52,898).June 2015 8,091,609 6,800,888 1,290,721$ c. WA State Dept of Revenue audit adjustment to sales tax returns for period of May 2016 (adjustment: - $16,496). d. WA State Dept of Revenue audit adjustment to sales tax returns for period of April 2017 (adjustment: - $29,746). 06/23/17 Prepared by Auburn Finance Department -3.8% 35Page 80 of 87 Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance 430 430 431 431 433 433 432 432 OPERATING FUND:460 460 461 461 462 462 OPERATING REVENUES Charges For Service 14,730,511 6,279,820 (8,450,691) 8,102,441 4,334,863 (3,767,578) 17,237,490 8,808,387 (8,429,103) 9,242,676 4,889,583 (4,353,093) Grants - - - - - - Interest Earnings 10,000 36,671 26,671 20,000 13,312 (6,688) 1,000 3,658 2,658 15,000 8,865 (6,135) Operating Transfers - - - Rents, Leases, Concessions, & Other 212,939 105,418 (107,521) 72,849 44,353 (28,496) - - - 60,951 41,180 (19,771) TOTAL OPERATING REVENUES 14,953,450 6,421,909 (8,531,541) 8,195,290 4,392,528 (3,802,762) 17,238,490 8,812,045 (8,426,445) 9,318,627 4,939,627 (4,379,000) OPERATING EXPENSES Salaries & Wages 2,688,501 1,288,359 1,400,142 1,742,176 888,995 853,181 - - - 2,500,996 1,288,455 1,212,541 Benefits 1,314,301 608,571 705,730 842,110 406,226 435,884 - - - 1,233,452 603,125 630,327 Supplies 334,444 111,797 222,647 136,750 43,292 93,458 - - - 94,750 33,617 61,133 Other Service Charges 4,959,380 1,248,901 3,710,479 2,867,890 1,224,097 1,643,793 - - - 1,733,290 639,659 1,093,631 Intergovernmental Services (Less Transfers Out)- - - 403,332 2,210 401,122 583,312 - 583,312 Waste Management Payments see Note Sewer Metro Services 17,294,700 8,647,013 8,647,687 Debt Service Interest 1,345,282 72,728 1,272,554 276,483 13,335 263,148 - - - 361,418 - 361,418 Net Change Restricted Assets Interfund Operating Rentals & Supplies 1,422,716 711,401 711,315 1,039,865 521,739 518,126 - - - 1,441,066 721,567 719,499 TOTAL OPERATING EXPENSES 12,064,624 4,041,756 8,022,868 7,308,606 3,099,893 4,208,713 17,294,700 8,647,013 8,647,687 7,948,284 3,286,422 4,661,862 OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION (*)2,888,826 2,380,153 (508,673) 886,684 1,292,635 405,951 (56,210) 165,032 221,242 1,370,343 1,653,205 282,862 Transfer to Capital Subfund 1,000,000 - 1,000,000 1,000,000 - 1,400,000 - Other Operating Transfers 331,166 56,865 274,301 393,832 38,704 355,128 500,312 131,526 368,786 Debt Service Principal 1,732,527 624,107 1,108,420 541,127 288,262 252,865 413,162 - 413,162 Net Change in Restricted Net Assets - 964,064 964,064 - 131,232 131,232 - 985,630 985,630 BEGINNING WORKING CAPITAL - January 1, 2017 4,745,398 7,977,666 3,232,268 1,821,037 2,810,410 989,373 2,374,705 2,672,022 297,317 2,132,662 2,005,792 (126,870) ENDING WORKING CAPITAL - June 30, 2017 4,570,531 8,712,783 4,142,252 772,762 3,644,847 2,872,085 2,318,495 2,837,054 518,559 1,189,531 2,541,840 1,352,309 NET CHANGE IN WORKING CAPITAL (see Note)(174,867) 735,117 909,984 (1,048,275) 834,437 1,882,712 (56,210) 165,032 221,242 (943,131) 536,048 1,479,179 CAPITAL FUND: CAPITAL REVENUES Interest Revenue - 7,873 7,873 - 47,917 47,917 - 49,851 49,851 Grants 175,000 - (175,000) - - - Contributions - - - - - - - Other Non-Operating Revenue - - - - - - - - - Gain (Loss) On Sale Of Fixed Assets - - - - - - - - - Increase In Contributions - System Development 1,000,000 287,024 (712,976) 500,000 165,214 (334,786) 500,000 237,994 (262,006) Interfund Revenues - - - - - - - - - Increase In Contributions - FAA - - - - - - - - - Proceeds of Debt Activity 5,402,159 6,808 (5,395,351) - - - - - - Transfers In from Operating Sub-Fund 1,000,000 - (1,000,000) 1,000,000 - (1,000,000) 1,400,000 - (1,400,000) Transfer In from Other Funds 200,000 - (200,000) - - - - - Other Sources - - - - - - - - - TOTAL CAPITAL REVENUES 7,777,159 301,705 (7,475,454) 1,500,000 213,131 (1,286,869) 1,900,000 287,845 (1,612,155) CAPITAL EXPENSES Other Non-Operating Expense - (572,557) 572,557 - - - - (800,501) 800,501 Increase In Fixed Assets - Salaries 382,143 88,935 293,208 86,429 32,085 54,344 152,143 94,487 57,657 Increase In Fixed Assets - Benefits 152,857 40,047 112,810 34,571 14,643 19,928 60,857 41,834 19,023 Increase In Fixed Assets - Services - 4,107 (4,107) - 2,324 (2,324) - - - Increase In Fixed Assets - Site Improvements - 18,287 (18,287) - - - - - Increase In Fixed Assets - Equipment - - - Increase In Fixed Assets - Construction 10,544,977 1,496,788 9,048,189 2,686,218 240,298 2,445,920 3,906,304 1,057,298 2,849,007 Increase In Fixed Assets - Other - - - 3,135 (3,135) Operating Transfers Out 50,000 50,000 - 50,000 50,000 - 156,000 50,000 106,000 TOTAL CAPITAL EXPENSES 11,129,977 1,125,608 10,004,369 2,857,218 339,350 2,517,868 4,275,304 446,252 3,829,052 BEGINNING WORKING CAPITAL - January 1, 2017 4,013,871 1,936,373 (2,077,498) 9,178,437 12,710,295 3,531,858 12,722,447 13,379,700 657,253 661,053 1,112,470 451,417 7,821,219 12,584,076 4,762,857 10,347,143 13,221,293 2,874,150 NET CHANGE IN WORKING CAPITAL (see Note)(3,352,818) (823,903) 2,528,915 (1,357,218) (126,220) 1,230,998 (2,375,304) (158,407) 2,216,897 Total Change in Working Capital (3,527,685) (88,786) 3,438,899 (2,405,493) 708,218 3,113,711 (56,210) 165,032 221,242 (3,318,435) 377,641 3,696,076 ENDING WORKING CAPITAL - June 30, 2017 Working Capital = Current Assets minus Current Liabilities ENTERPRISE FUNDSOPERATING & CAPITAL FUNDS WATER SEWER SEWER METRO STORMCash Basis through June 2017 8/9/2017 12:52 PM 36Page 81 of 87 OPERATING FUND: OPERATING REVENUES Charges For Service Grants Interest Earnings Operating Transfers Rents, Leases, Concessions, & Other TOTAL OPERATING REVENUES OPERATING EXPENSES Salaries & Wages Benefits Supplies Other Service Charges Intergovernmental Services (Less Transfers Out) Waste Management Payments see Note Sewer Metro Services Debt Service Interest Net Change Restricted Assets Interfund Operating Rentals & Supplies TOTAL OPERATING EXPENSES OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION (*) Transfer to Capital Subfund Other Operating Transfers Debt Service Principal Net Change in Restricted Net Assets BEGINNING WORKING CAPITAL - January 1, 2017 ENDING WORKING CAPITAL - June 30, 2017 NET CHANGE IN WORKING CAPITAL (see Note) CAPITAL FUND: CAPITAL REVENUES Interest Revenue Grants Contributions Other Non-Operating Revenue Gain (Loss) On Sale Of Fixed Assets Increase In Contributions - System Development Interfund Revenues Increase In Contributions - FAA Proceeds of Debt Activity Transfers In from Operating Sub-Fund Transfer In from Other Funds Other Sources TOTAL CAPITAL REVENUES CAPITAL EXPENSES Other Non-Operating Expense Increase In Fixed Assets - Salaries Increase In Fixed Assets - Benefits Increase In Fixed Assets - Services Increase In Fixed Assets - Site Improvements Increase In Fixed Assets - Equipment Increase In Fixed Assets - Construction Increase In Fixed Assets - Other Operating Transfers Out TOTAL CAPITAL EXPENSES BEGINNING WORKING CAPITAL - January 1, 2017 NET CHANGE IN WORKING CAPITAL (see Note) Total Change in Working Capital ENDING WORKING CAPITAL - June 30, 2017 Working Capital = Current Assets minus Current Liabilities OPERATING & CAPITAL FUNDS Cash Basis through June 2017 Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance 434 434 435 435 436 436 501 501 464 464 465 465 466 466 - 14,816,200 7,323,558 (7,492,642) 807,800 429,482 (378,318) 927,500 645,218 (282,282) - - - 87,300 5,452 (81,848) - - - - - 9,000 15,963 6,963 2,500 2,305 (195) 800 1,609 809 1,500 2,561 1,061 200,000 - (200,000) 670,715 335,358 (335,358) - - - 3,000 4,401 1,401 - - - - 14,912,500 7,344,973 (7,567,527) 813,300 436,188 (377,112) 1,128,300 646,827 (481,473) 672,215 337,918 (334,297) 325,910 160,993 164,917 - - - 475,628 240,566 235,062 - - - 147,414 71,325 76,089 - - - 258,734 125,302 133,432 225,750 33,831 191,919 36,542 973 35,569 2,500 - 2,500 221,700 113,654 108,046 - - - 1,576,565 714,204 862,361 484,950 234,658 250,292 156,750 43,128 113,622 4,230 544,164 (539,934) 363,600 91,202 272,398 - - - 1,332 147 1,185 - - - 11,975,500 4,866,458 7,109,042 - - - 24,357 4,860 19,497 (0) - (0) - - - 39,942 19,914 20,028 111,587 55,794 55,793 1,400 702 698 47,833 23,916 23,917 - - - 14,537,118 5,960,950 8,576,168 553,149 260,134 293,015 1,161,977 546,712 615,265 229,980 577,995 (348,015) 375,382 1,384,024 1,008,642 260,151 176,054 (84,097) (33,677) 100,115 133,792 442,235 (240,077) (682,312) - - - - - - 1,332 147 1,185 165,000 - 165,000 - - - - (10,513) (10,513) - - - 3,849,877 4,411,853 561,976 188,565 236,649 48,084 277,586 293,829 16,243 1,312,689 1,385,685 72,996 4,225,259 5,795,876 1,570,617 283,716 423,216 139,500 243,909 393,944 150,035 1,754,924 1,145,608 (609,316) 375,382 1,384,024 1,008,642 95,151 186,567 91,416 (33,677) 100,115 133,792 442,235 (240,077) (682,312) - 1,400 1,400 - 952 952 16,667 - (16,667) - - - - - - - - - - - - - - - - - - - - - - - - - - - 300,000 - (300,000) - - - - - - - - - 275,000 255,608 (19,392) - - - - - - - - - 591,667 257,008 (334,659) - 952 952 - - - - - - 21,429 - 21,429 - - - 8,571 - 8,571 - - - - - - - - - - - - - - - 608,334 275,035 333,299 - - - - - - - - - - - 638,334 275,035 363,299 - - - 158,410 360,602 202,192 157,301 256,633 99,332 111,743 342,575 230,832 157,301 257,585 100,284 (46,667) (18,027) 28,640 - 952 952 375,382 1,384,024 48,484 168,540 120,056 (33,677) 101,067 134,744 442,235 (240,077) (682,312) Note: Working capital balance only includes five Waste Management payments due to the timing of June's payment ($988,974), which will be made in July. INTERNAL SERVICE FUNDS INSURANCE ENTERPRISE FUNDS SOLID WASTE AIRPORT CEMETERY see Note 8/9/2017 12:52 PM 37Page 82 of 87 OPERATING FUND: OPERATING REVENUES Charges For Service Grants Interest Earnings Operating Transfers Rents, Leases, Concessions, & Other TOTAL OPERATING REVENUES OPERATING EXPENSES Salaries & Wages Benefits Supplies Other Service Charges Intergovernmental Services (Less Transfers Out) Waste Management Payments see Note Sewer Metro Services Debt Service Interest Net Change Restricted Assets Interfund Operating Rentals & Supplies TOTAL OPERATING EXPENSES OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION (*) Transfer to Capital Subfund Other Operating Transfers Debt Service Principal Net Change in Restricted Net Assets BEGINNING WORKING CAPITAL - January 1, 2017 ENDING WORKING CAPITAL - June 30, 2017 NET CHANGE IN WORKING CAPITAL (see Note) CAPITAL FUND: CAPITAL REVENUES Interest Revenue Grants Contributions Other Non-Operating Revenue Gain (Loss) On Sale Of Fixed Assets Increase In Contributions - System Development Interfund Revenues Increase In Contributions - FAA Proceeds of Debt Activity Transfers In from Operating Sub-Fund Transfer In from Other Funds Other Sources TOTAL CAPITAL REVENUES CAPITAL EXPENSES Other Non-Operating Expense Increase In Fixed Assets - Salaries Increase In Fixed Assets - Benefits Increase In Fixed Assets - Services Increase In Fixed Assets - Site Improvements Increase In Fixed Assets - Equipment Increase In Fixed Assets - Construction Increase In Fixed Assets - Other Operating Transfers Out TOTAL CAPITAL EXPENSES BEGINNING WORKING CAPITAL - January 1, 2017 NET CHANGE IN WORKING CAPITAL (see Note) Total Change in Working Capital ENDING WORKING CAPITAL - June 30, 2017 Working Capital = Current Assets minus Current Liabilities OPERATING & CAPITAL FUNDS Cash Basis through June 2017 Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance 503 503 505 505 518 518 550 550 - - 568 568 560 560 961,300 470,617 (490,683) 3,453,700 1,739,997 (1,713,703) 6,038,376 3,019,520 (3,018,856) 2,263,102 1,141,471 (1,121,631) - - - - - - 2,600 4,624 2,024 8,800 8,147 (653) 5,000 4,888 (112) - 10,626 10,626 579,916 108,729 (471,187) 720,000 100,000 (620,000) 93,000 1,742 (91,258) - 36,816 36,816 - - - - 107,785 107,785 1,056,900 476,983 (579,917) 3,462,500 1,784,959 (1,677,541) 6,623,292 3,133,136 (3,490,156) 2,983,102 1,359,882 (1,623,220) 76,324 38,396 37,928 655,000 309,658 345,342 1,822,981 894,909 928,072 681,943 287,693 394,250 364,638 44,471 320,167 358,001 164,832 193,169 817,418 383,194 434,224 349,650 145,445 204,205 - - - 150,220 58,958 91,262 508,250 170,284 337,966 1,074,000 380,194 693,806 492,915 154,902 338,013 1,818,387 619,281 1,199,106 2,809,630 1,407,980 1,401,650 427,580 173,946 253,634 - - - - - - - - - - - - - - - - - - - - - 3,843 2,077 1,766 - - - 140,784 70,392 70,392 191,031 95,508 95,523 231,152 115,676 115,476 933,877 237,769 696,108 3,122,392 1,223,121 1,899,271 6,149,310 2,951,875 3,197,435 2,768,168 1,105,032 1,663,136 123,023 239,214 116,191 340,108 561,838 221,730 473,982 181,262 (292,720) 214,934 254,850 39,916 400 400 - - - - 40,297 20,043 20,254 - - - - (36,241) (36,241) 787,022 1,097,368 310,346 1,762,019 1,853,016 90,997 295,416 1,064,713 769,297 2,268,495 2,749,240 480,745 910,045 1,336,581 426,536 2,102,127 2,414,854 312,727 768,998 1,245,574 476,576 2,443,132 3,020,288 577,156 123,023 239,214 116,191 340,108 561,838 221,730 473,582 180,862 (292,720) 174,637 271,048 96,411 - 7,975 7,975 - 11,819 11,819 - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,703,631 851,814 (851,817) - - - - - - - - - - - - - 52,202 52,202 - - - 169,232 - (169,232) 390,927 65,129 (325,798) - - - - - - 169,232 60,177 (109,055) 2,094,558 928,762 (1,165,796) - - - - - - - 1,548 (1,548) - - - - 565 (565) - - - - - - - - - - - - 302,186 (302,186) 1,961,665 862,140 1,099,525 16,814 (16,814) 710,000 - 710,000 - - - - - - - - - 321,113 (321,113) 2,671,665 862,140 1,809,525 1,925,983 2,319,577 393,594 1,761,822 3,020,402 1,258,580 2,095,215 2,058,641 (36,574) 1,184,715 3,087,024 1,902,309 169,232 (260,936) (430,168) (577,107) 66,622 643,729 123,023 239,214 116,191 340,108 561,838 221,730 642,814 (80,074) (722,888) (402,470) 337,670 740,140 INTERNAL SERVICE FUNDS WORKER'S COMPENSATION FACILITIES INNOVATION & TECHNOLOGY EQUIPMENT RENTAL 8/9/2017 12:52 PM 38Page 83 of 87 INNOVATION EQUIPMENT & TECHNOLOGY RENTAL OPERATING REVENUES Charges For Services 6,279,820$ 4,334,863$ -$ 4,889,583$ 7,323,558$ 25,432$ 645,218$ -$ -$ -$ -$ -$ Interfund Charges For Services - - - - - - - - 472,358 1,687,098 2,985,513 1,993,285 Sewer Metro Services Revenue - - 8,808,387 - - - - - - - - - Rents, Leases, Concessions & Other - - - - - 404,050 - - - 52,899 34,006 - TOTAL OPERATING REVENUES 6,279,820$ 4,334,863$ 8,808,387$ 4,889,583$ 7,323,558$ 429,482$ 645,218$ -$ 472,358$ 1,739,997$ 3,019,520$ 1,993,285$ OPERATING EXPENSES Administration & Other 2,245,806$ 2,262,240$ -$ 1,685,007$ 850,295$ 30,846$ 164,548$ 577,995$ -$ -$ -$ 413,027$ Operations & Maintenance 1,723,222 826,643 8,647,013 1,604,551 5,110,655 204,513 382,017 - 237,769 1,223,121 2,951,875 689,928 Depreciation & Amortization 1,642,014 1,103,538 - 947,932 9,410 232,447 25,382 - - - 382,067 548,369 TOTAL OPERATING EXPENSES 5,611,042$ 4,192,421$ 8,647,013$ 4,237,490$ 5,970,360$ 467,807$ 571,947$ 577,995$ 237,769$ 1,223,121$ 3,333,942$ 1,651,324$ OPERATING INCOME (LOSS)668,778$ 142,443$ 161,374$ 652,093$ 1,353,198$ (38,325)$ 73,271$ (577,995)$ 234,589$ 516,875$ (314,423)$ 341,960$ NON-OPERATING REVENUES & EXPENSES Interest Revenue 44,544$ 61,229$ 3,658$ 58,716$ 15,963$ 3,705$ 2,561$ 2,561$ 4,624$ 8,147$ 12,863$ 22,445$ Other Non-Operating Revenue 105,418 37,461 - 41,180 5,452 4,401 - - - 36,816 - 105,840 Gain (Loss) On Sale Of Fixed Assets - - - - - - - - - - - 1,946 Other Non-Operating Expense (72,728) (63,335) - - - (4,860) - - - - - (2,077) TOTAL NON-OPERATING REVENUES & EXPENSES 77,234$ 35,355$ 3,658$ 99,896$ 21,416$ 3,246$ 2,561$ 2,561$ 4,624$ 44,963$ 12,863$ 128,153$ 746,012$ 177,798$ 165,032$ 751,989$ 1,374,614$ (35,079)$ 75,832$ (575,434)$ 239,214$ 561,838$ (301,560)$ 470,114$ Contributions 287,024$ 172,105$ -$ 237,994$ -$ -$ -$ -$ -$ -$ -$ -$ Transfers In - - - - - 255,608 - 335,358 - - 160,931 165,129 Transfers Out (106,865) (38,704) - (181,526) - - (147) - - (403,518) (400) - TOTAL CONTRIBUTIONS & TRANSFERS 180,159$ 133,401$ -$ 56,468$ -$ 255,608$ (147)$ 335,358$ -$ (403,518)$ 160,531$ 165,129$ CHANGE IN FUND BALANCE 926,171$ 311,199$ 165,032$ 808,456$ 1,374,614$ 220,529$ 75,685$ (240,077)$ 239,214$ 158,320$ (141,029)$ 635,242$ BEGINNING FUND BALANCE - January 1, 2017 75,751,705$ 81,919,221$ 2,672,022$ 64,010,652$ 4,245,695$ 9,514,116$ 1,374,410$ 1,385,685$ 1,064,528$ 1,530,324$ 4,291,351$ 10,920,413$ ENDING FUND BALANCE - June 30, 2017 76,677,877$ 82,230,420$ 2,837,054$ 64,819,109$ 5,620,309$ 9,734,645$ 1,450,095$ 1,145,608$ 1,303,741$ 1,688,644$ 4,150,323$ 11,555,656$ The following table provides an analysis of each of the City's Enterprise and Internal Service funds - showing 2017 revenues and expenditures by fund through June and includes the Fund Balance in the associated Capital Sub-Fund. FUND BALANCE ENTERPRISE FUNDS INTERNAL SERVICE FUNDS WATER SEWER SEWER METRO STORM SOLID WASTE AIRPORT CEMETERY INSURANCE WORKER'S COMPENSATION FACILITIES INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 39Page 84 of 87 AGENDA BILL APPROVAL FORM Agenda Subject: Matrix Date: August 10, 2017 Department: Administration Attachments: Matrix SFAs Budget Impact: $0 Administrative Recommendation: Background Summary: Reviewed by Council Committees: Councilmember: Staff: Meeting Date:August 14, 2017 Item Number: Page 85 of 87 Updated August 7, 2017 NO.TOPIC Chair STAFF LEAD(S)STUDY SESSION REVIEW DATE(S) COUNCIL DISCUSSION SUMMARY ACTION DATE 1 $20 Car Tab Chair Wales TBD Sept 2017 study session 2 Capital Projects Update and Featured Capital Project Discussion Chair Wagner Vice Chair DaCorsi Director Snyder 8/14/2017 3 Community Sustainability Series: Economic and Statutory Considerations for Municipalities Chair Wagner Vice Chair DaCorsi Director Snyder Rescheduled for later this year 4 IT Update on Digital Parity Chair Wagner Vice Chair DaCorsi Director Haugan 10/09/2017 5 Code Enforcement Presentation Chair Wagner Vice Chair DaCorsi Director Snyder 10/9/2017 6 Property at 104th and 102nd Chair Wagner Vice Chair DaCorsi Director Snyder 10/9/2017 7 Business Shopping Carts Chair Peloza Vice Chair Baggett Director Snyder 8/28/2017 8 District Court Briefing Follow- up Chair Peloza Vice Chair Baggett Director Roscoe 8/28/2017 9 Police Calls for Mental Health Issues Chair Peloza Vice Chair Baggett Chief Lee 8/28/2017 10 Pioneer Cemetery Chair Peloza Vice Chair Baggett Director Faber 8/28/2017 11 Second Quarter Financial Report Chair Baggett Vice Chair Wagner Director Coleman 8/14/2017 12 2016 CAFR Chair Baggett Vice Chair Wagner Director Coleman 8/14/2017 13 Solid Waste Contract Extension Chair Baggett Vice Chair Wagner Director Coleman 8/14/2017 14 Fire Relief & Pension Fund Chair Baggett Vice Chair Wagner Director Coleman 8/14/2017 15 Investment Policy Update Chair Baggett Vice Chair Wagner Director Coleman 8/14/2017 16 Legal Rights for Undocumented Residents Chair Trout-Manuel Vice Chair Wales Director Hinman future meeting 17 CDBG Grant Parameters Chair Trout-Manuel Vice Chair Wales 9/11/2017 COUNCIL MATRIX Page 86 of 87 Revised 06-12-2017 HEALTH & HUMAN SERVICES FINANCE & ECONOMIC DEVELOPMENT PUBLIC WORKS & COMMUNITY DEVELOPMENT MUNICIPAL SERVICES HUMAN SERVICES FUNDING CITY BUDGET & AMENDMENTS UTILITIES POLICE PUBLIC WELLNESS RISK MANAGEMENT ZONING, CODES & PERMITS SCORE JAIL DOMESTIC VIOLENCE SERVICES EQUIPMENT RENTAL INNOVATION & TECHNOLOGY DISTRICT COURT HOMELESSNESS SERVICES FACILITIES TRANSPORTATION PARKS & RECREATION AFFORDABLE HOUSING CITY REAL PROPERTY STREETS ANIMAL CONTROL COMMUNITY SERVICES LEGAL ENGINEERING SOLID WASTE HUMAN RESOURCES DEVELOPMENT INCENTIVES CAPITAL PROJECTS EMERGENCY PLANNING MEDICAL COMMUNITY RELATIONS BUSINESS DEVELOPMENT SUSTAINABILITY AIRPORT ECONOMIC DEVELOPMENT STRATEGIES ENVIRONMENTAL PROTECTION AIRPORT BUSINESSES CULTURAL ARTS & PUBLIC ARTS SISTER CITIES PLANNING MULTIMEDIA Councilmember Trout-Manuel, Chair Councilmember Baggett, Chair Councilmember Wagner, Chair Councilmember Peloza, Chair Deputy Mayor Wales, Vice Chair Councilmember Wagner, Vice Chair Councilmember DaCorsi, Vice Chair Councilmember Baggett, Vice Chair 2017 MEETING DATES 2017 MEETING DATES 2017 MEETING DATES 2017 MEETING DATES March 13, 2017 March 27, 2017 April 10, 2017 April 24, 2017 May 8, 2017 May 22, 2017June 12, 2017 June 12, 2017May 22, 2017 June 26, 2017 July 10, 2017 July 24, 2017August 14, 2017 August 14, 2017July 24, 2017 August 28, 2017 September 11, 2017 September 25, 2017 October 9, 2017 October 23, 2017 November 13, 2017 November 27, 2017 December 11, 2017 December 26, 2017 SPECIAL FOCUS AREAS Page 87 of 87