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HomeMy WebLinkAbout10-08-2018 CITY COUNCIL STUDY SESSION (3)City Council Study Session Finance - Econ Dev S FA October 8, 2018 - 5:30 P M Council Chambers - City Hall A GE NDA Watch the meeting L I V E ! Watch the meeting video Meeting videos are not available until 72 hours after the meeting has concluded. I .C A L L TO O R D E R A .Roll Call I I .A NNO UNC E ME NT S , R E P O RT S , A ND P R E S E NTAT I O NS I I I .A G E ND A I T E MS F O R C O UNC I L D I S C US S I O N A .Ordinance No. X X X X De-Gendering Auburn City Code (Gross) (10 Minutes) B .Resolution No. 5384 (Hinman) (10 Minutes) C.2019-2024 Transportation I mprovement Program - Modification (Gaub) (10 Minutes) D.Ordinance No. 6688 – New Zoning Code Definition for “Community S upport F acilities” (Tate) (10 Minutes) E stablish a new definition within the zoning code for Community Support Facilities and amend the land use table making Community S upport F acilities a permitted use in the C-1, L ight Commercial zone I V.F I NA NC E A ND E C O NO MI C D E V E L O P ME NT D I S C US S I O N I T E MS A .Monthly Water Usage Billing (Coleman) (15 Minutes) Monthly Water Consumption B illing Change and New Utility Billing Statements B .Developer Fee Cost of S ervice S tudy (Coleman) (30 Minutes) C.2nd Quarter 2018 F inancial Report (Coleman) (15 Minutes) D.E conomic Development Update (Hinman) (15 Minutes) V.O T HE R D I S C US S I O N I T E MS V I .NE W B US I NE S S V I I .MAT R I X A .Matrix V I I I .A D J O UR NME NT Page 1 of 109 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 109 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. XXXX De-Gendering Auburn City Code (Gros s ) (10 Minutes) Date: October 3, 2018 Department: Legal Attachments: De-Gendering Budget Impact: Current Budget: $0 Proposed Revis ion: $0 Revis ed Budget: $0 Adminis trative Rec ommendation: Background Summary: The propos ed ordinanc e authorizes staff to have the Auburn Municipal Code revised to change gendered pronouns to non-gendered terms . The City has a long history of promoting equality and non-disc rimination. However, the c urrent version of our Municipal Code dates from 1957 and used male pronouns almost exclus ively. As time went on, that code was amended and new sec tions of the c ode were added. Some of thos e amendments c hanged “he” to “he/s he” or “he or she,” but those changes are not c onsistent throughout the code. In recent years, best prac tic es in c ode drafting reflec t a trend to using non-gendered terms . For example, where the code refers to a Counc il member, ins tead of saying “he or she” the code would say “the Counc il member….” Additionally, there is an ongoing trend to change some common position titles to eliminate references to gender. ‘Councilman” and “Counc ilwoman” bec ame “Counc ilmember.” “Policeman” and “Polic ewoman” bec ame “Polic e Offic er.” State law allows us to “modernize” the code where appropriate, when doing so does not change the meaning of the original ordinanc e. As we move forward with updating the City’s webs ite, the Clerk’s office has been talking to Code Publis hing about moving our c ode to their newer platform. Bellevue us es this platform (https://bellevue.municipal.codes/). It is c leaner and eas ier to searc h. Als o, it provides s ome cus tomization options , s uc h as storing our original ordinance and res olutions, that will make it easier for res idents to track the history of c ity laws and polic ies . As you know, making information available on the City’s webs ite helps us res pond more quickly to public rec ords reques ts. The changes to the code and the migration to the new platform are within the department’s 2018 budget. Reviewed by Counc il Committees : Counc ilmember:Staff: Meeting Date:October 8, 2018 Item Number: Page 3 of 109 Page 4 of 109 Table 1 Gendered Terms in Existing Code Common Non-Gendered Titles of Office, Employment and Descriptors He, She, Him, Her, Himself, Herself The Agent He, She, Him, Her, Himself, Herself The Alternate member He, She, Him, Her, Himself, Herself The Applicant He, She, Him, Her, Himself, Herself The Architect He, She, Him, Her, Himself, Herself The Assessor He, She, Him, Her, Himself, Herself The Attorney He, She, Him, Her, Himself, Herself The Candidate He, She, Him, Her, Himself, Herself The Chief officer He, She, Him, Her, Himself, Herself The Clerk He, She, Him, Her, Himself, Herself The Complainant He, She, Him, Her, Himself, Herself The Consignee He, She, Him, Her, Himself, Herself The Councilmember He, She, Him, Her, Himself, Herself The Dancer He, She, Him, Her, Himself, Herself The Dealer He, She, Him, Her, Himself, Herself The Declarant He, She, Him, Her, Himself, Herself The Department director He, She, Him, Her, Himself, Herself The Deputy He, She, Him, Her, Himself, Herself The Designee He, She, Him, Her, Himself, Herself The Detainee He, She, Him, Her, Himself, Herself The Director He, She, Him, Her, Himself, Herself The Driver He, She, Him, Her, Himself, Herself The Employee He, She, Him, Her, Himself, Herself The Engineer He, She, Him, Her, Himself, Herself The Entertainer He, She, Him, Her, Himself, Herself The Examiner He, She, Him, Her, Himself, Herself The Executive He, She, Him, Her, Himself, Herself The Executor He, She, Him, Her, Himself, Herself The Felon He, She, Him, Her, Himself, Herself The Fire Marshall He, She, Him, Her, Himself, Herself The Franchisee He, She, Him, Her, Himself, Herself The Franchisor He, She, Him, Her, Himself, Herself The Guarantee He, She, Him, Her, Himself, Herself The Guarantor He, She, Him, Her, Himself, Herself The Individual He, She, Him, Her, Himself, Herself The Inspector Page 5 of 109 He, She, Him, Her, Himself, Herself The Investigator He, She, Him, Her, Himself, Herself The Leaver He, She, Him, Her, Himself, Herself The Lessee He, She, Him, Her, Himself, Herself The Lessor He, She, Him, Her, Himself, Herself The Licensee He, She, Him, Her, Himself, Herself The Lobbyist He, She, Him, Her, Himself, Herself The Manager He, She, Him, Her, Himself, Herself The Member He, She, Him, Her, Himself, Herself The Merchant He, She, Him, Her, Himself, Herself The Mortgagee He, She, Him, Her, Himself, Herself The Mortgagor He, She, Him, Her, Himself, Herself The Offender He, She, Him, Her, Himself, Herself The Officer He, She, Him, Her, Himself, Herself The Official He, She, Him, Her, Himself, Herself The Operator He, She, Him, Her, Himself, Herself The Owner He, She, Him, Her, Himself, Herself The Pawn broker He, She, Him, Her, Himself, Herself The Permit holder He, She, Him, Her, Himself, Herself The Permittee He, She, Him, Her, Himself, Herself The Person He, She, Him, Her, Himself, Herself The Physician He, She, Him, Her, Himself, Herself The Principal He, She, Him, Her, Himself, Herself The Prisoner He, She, Him, Her, Himself, Herself The Probationer He, She, Him, Her, Himself, Herself The Promoter He, She, Him, Her, Himself, Herself The Public records officer He, She, Him, Her, Himself, Herself The Purchaser He, She, Him, Her, Himself, Herself The Respondent He, She, Him, Her, Himself, Herself The Secondhand dealer He, She, Him, Her, Himself, Herself The Seller He, She, Him, Her, Himself, Herself The Servant He, She, Him, Her, Himself, Herself The Sheriff He, She, Him, Her, Himself, Herself The Solicitor He, She, Him, Her, Himself, Herself The Sponsor He, She, Him, Her, Himself, Herself The Station manager’s He, She, Him, Her, Himself, Herself The Suspended person He, She, Him, Her, Himself, Herself The Tenant He, She, Him, Her, Himself, Herself The Trespasser He, She, Him, Her, Himself, Herself The Trustee He, She, Him, Her, Himself, Herself The Vendor Page 6 of 109 a. Each specifically gendered term identified in column A of Table 2, and which is also found within the Municipal Code, shall be replaced by the corresponding non-gendered term identified in column B. Table 2 is non-exhaustive an may be amended from time to time. Table 2 Gendered Terms Commonly Found in Existing Code Non-Gendered Term Replacement “Bondsman” “Bonds-person” “Brother” “Sibling” “Chairman” “Chair,“ “chairperson” “Craftsmen” “Craftspeople,” “artisans” “Fireman,” “Firewoman,” “Firemen,” “Firewomen” “Firefighter,” “firefighters” “Fraternal” “Social” “Heirs” “Beneficiaries” “Journeyman” “Journey” ‘Maiden” “Family” “Male” and “female” “People of different genders” “Manhole” “Maintenance hole” “Manmade” “Human-made” “Manpower” “Human effort” “Manpower” “Workforce” “Master” “Captain,” “Skipper,” “Pilot,” “Safety Officer,” “Central” “Men and women” “People” “Men or women” “A single gender” “Ombudsman” “Ombuds, “Investigating Official” “Patrolmen” “Patrol,” “Guards” “Policeman,” “Policewoman,” “Policemen,“ “Policewomen” “Police Officer,” “Police Officers” “Pregnant” (woman, women) “Pregnant employees” “Repairman” “Repairs,” “Repairer” “Salesman” “Salesperson,” “Salespeople” “Sister” “Sibling” “Sorority,” “Fraternity” “Collegiate Greek system residence” “Sportsman” “Hunters” “The masculine pronoun includes the feminine” “Words referring to a specific gender may be extended to any other gender” “Watchmen” “Guards” Page 7 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Resolution No. 5384 (Hinman) (10 Minutes) Date: October 1, 2018 Department: Adminis tration Attachments: Res olution 5384 Exhibit A - Letter of Intent 5384 Agenda Bill Lund Property Report Budget Impact: Current Budget: $0 Proposed Revis ion: $0 Revis ed Budget: $0 Adminis trative Rec ommendation: Background Summary: Reviewed by Counc il Committees : Counc ilmember:Staff: Meeting Date:October 8, 2018 Item Number: Page 8 of 109 ---------------------------- Resolution No. 5384 September 25, 2018 Page 1 of 2 RESOLUTION NO 5384. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DECLARING CERTAIN REAL PROPERTY AS SURPLUS; AND AUTHORIZING THE MAYOR TO NEGOTIATE AND EXECUTE A PURCHASE AND SALE AGREEMENT BETWEEN THE CITY OF AUBURN AND PAPE PROPERTIES, INC. WHEREAS, The City purchased, pursuant to Resolution 4099, 302 Lund Road SW from King County on September 19, 2006 for the overall enhancement of the City; and WHEREAS, on November 27, 2017 the City’s Real Property Analyst sent out an email inquiry to all departments seeking any current or future need for this real property and no current or future need was identified for this property; and WHEREAS, Papé Properties Inc. approached the City seeking to purchase 302 Lund Rd SW for wetland enhancement mitigation of non-City owned parcels; and WHEREAS, The sale of 302 Lund Rd SW is in the public interest as it creates an opportunity for economic enhancement of the area and future City revenues through commercial development of other private parcels. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Section 1. That the following legally described property is declared surplus to the City’s needs: LEGAL DESCRIPTION LOT 2 OF AUBURN SP-11-85, RECORDING NO. 8601080790, SAID SHORT PLAT, DESCRIBED AS FOLLOWS: WEST ¾ OF THE WEST ½ OF THE NE ¼ Page 9 of 109 ---------------------------- Resolution No. 5384 September 25, 2018 Page 2 of 2 OF THE SW ¼ OF SECTION 13, TOWNSHIP 21 NORTH, RANGE 4 EAST, W.M., KING COUNTY, WASHINGTON, LESS STATE ROAD, LESS COUNTY ROAD more commonly referred to by King County tax parcel 1321049104, or by street address 302 Lund Rd. SW, Auburn, WA 98001. Section 2. That the Mayor of the City of Auburn, or the mayor’s designee, is authorized to negotiate and execute a Purchase and Sale Agreement with Papé Properties Inc. with the Agreement being in substantial conformity to the Letter of Intent, attached as Exhibit A. Section 3. The Mayor is further authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Section 4. This resolution shall be in full force and effect upon passage and signatures hereon. Dated and Signed this _____ day of _________________, 2018. CITY OF AUBURN ________________________________ NANCY BACKUS, MAYOR ATTEST: _________________________ Shawn Campbell, MMC, City Clerk APPROVED AS TO FORM: _________________________ Steven L. Gross, City Attorney Page 10 of 109 Page 11 of 109 Page 12 of 109 Page 13 of 109 Updated 12/23/2014 Title: Resolution No. 5384 Agenda Category: Consent Resolution Ordinance Discussion Date: 10/1/2018 Department: Administration Budget Impact: +$200,000< Administrative Recommendation: Adoption of Resolution No. 5384 will declare City of Auburn owned property, parcel number 132104-9104, located at 302 Lund Rd SW as surplus to the needs of the City as well as authorize the Mayor to negotiate the sale of 302 Lund Rd SW to Pape` Properties, Inc. Such sale to be in substantial conformity to the business points established in the attached letter of intent. Background Summary: 302 Lund Rd SW was purchased from King County on 9/19/2006 for $180,000 authorized by City Council under resolution 4099. As part of the conveyance to the City a restriction on the deed was placed upon the deed that the property must be maintained as wetlands or mitigated per SEPA requirements and any future sale must include the same deed restriction. Pape` Properties Inc. is the real estate holding company for Pape` Machinery and Pape` Kenworth. Pape` are a regional company with 92 locations serving 8 different western states. They specializing in sales, leasing, service, repair, fleet management and replacement parts of heavy equipment. They are interested in developing a full service Pape` Kenworth dealership that would include sales, leasing service, repair, and parts for Kenworth machine and equipment. 302 Lund Rd SW would serve as part of a larger assemblage which would make up the dealership. Conveyance of the City’s property will include the afore mentioned deed restriction. List Attachments: Letter of Intent Reviewed by Council Ad Hoc Committees or Commissions: Other: Meeting Date: 10/1/2018 Staff: Josh Arndt Page 14 of 109 302 Lund Rd Property Information Street Address:Size (Acres):8.26 Notes Building (SqFt): Department:Administrations Current Use:Vacant land. 100% Wetland How/Why Acquired: Deed Restrictions:Deed Restrictions Notes: Planned Future Use: Zoning: City Fund: This and other surrounding properties were rezoned in October, 2006 from either M1 Light Industrial or R2 Single Family Residential to EP Environmental Park District (ORD 6037). City Council through ORD 6660 then rezoned most of the properties back to M1 Light Industrial on 10/16/17 This site is a Category II Wetland. See ACC 16.10.010 Section C for enhancement and creation of wetland ratios. Property is 100% wetland, with roughly 5 of the 8.26 acres being emergent vegetation and the remaining 3.26 acres being forested wetland. The 5 acres of emergent wetlands has a high-probability of potential for wetland enhancements that could be used to compensate for impacts imposed by future development activities within the City. King County acquired the property in 1992 due to delinquent property taxes. City assessed LID liens against the property which came due March 10, 1997. City wrote off total balance of LID in amount of $190,624.40 once City acquired ownership. The property was purchased for $180,000 from King County on 9/19/2006 for the overall enhancement of the area. Resolution 4099 authorized the purchase. Nothing at this time. ED/RE recommends surplus action Purchased using General Fund 328 - Capital Improvements. Held in Fixed Assets GL# 910.171.113 YES Property must be maintained as wetlands or mitigated per SEPA requirements. LIGHT INDUSTRIAL DISTRICT Property Profile Parcel:1321049104 Property Name: Report Created by eGIS:10/1/2018 1:58:37 PMFor additional information please contact Josh Arndt at jarndt@auburnwa.gov Page 15 of 109 Property Profile Parcel:1321049104 Property Name: Supporting Documents 1321049104 Wetland Report http://archives/internal/ElectronicFile.aspx?docid=283360&dbid=0 1321049104 Wetland Map http://archives/internal/ElectronicFile.aspx?docid=283359&dbid=0 1321049104 RES 4099 - Authorization to Purchase http://archives/internal/DocView.aspx?id=141664&searchid=6e85ce71-7d50-4311-819e-af5e2c1a2066&dbid=0 1321049104 ORD 6037 - Environmental Park Rezone http://archives/internal/DocView.aspx?id=139687&searchid=280322d7-0df1-4322-82e1-af8ccabb0d5e&dbid=0 1321049104 Warranty Deed http://archives/internal/0/doc/150849/Page1.aspx 1321049104 ORD 6660 - Rezone back to M1 http://archives/internal/DocView.aspx?id=312236&searchid=5ba4688c-a459-48a7-b48d-0d37e6bcbc80&dbid=0 Report Created by eGIS:10/1/2018 1:58:37 PMFor additional information please contact Josh Arndt at jarndt@auburnwa.gov Page 16 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: 2019-2024 Trans portation Improvement Program - Modification (Gaub) (10 Minutes ) Date: October 1, 2018 Department: Public Works Attachments: New TIP # I-15 Budget Impact: Adminis trative Rec ommendation: For dis cus s ion only. Background Summary: The purpose of this dis cus s ion item is to review Staff’s propos ed modific ation to the 2019-2024 Transportation Improvement Program (TIP) to add a new projec t to addres s a recently identified level of s ervic e defic ienc y. The 10th Street NW intersec tion with A Street NW is currently s top-c ontrolled on the 10th Street NW approach. The left-turn movement on this approach has been identified as operating at LOS E, whic h falls below the LOS D standard adopted by the City for this intersec tion. The s ignalization of the inters ection is identified as the appropriate improvement to addres s this LOS defic ienc y and is therefore being proposed to be added. A Public Hearing and a Res olution for adoption of the propos ed modific ations are currently planned for the November 5, 2018 City Counc il meeting. Reviewed by Counc il Committees : Counc ilmember:Staff:Gaub Meeting Date:October 8, 2018 Item Number: Page 17 of 109 Six Year Transportation Improvement PlanARTERIAL STREET FUND (102)Project Title: 10th Street NW/A Street NW Intersection ImprovementsSTIP# AUB-N/AProject No:TBDProject Type:Capacity, SafetyProject Manager:TBDLOS Corridor ID# N/AActivity:2018 YEFunding Sources:Prior to 2018Estimate201920202021202220232024Beyond 2024Total Project CostUnrestricted Street Revenue- - - - - - - - - - Unsecured Grant- - - - - - - - - - Traffic Impact Fees- - - - 175,000 475,000 - - - 650,000 Other- - - - - - - - - - Total Funding Sources: - - - - 175,000 475,000 - - - 650,000 Capital Expenditures:Design- - - - 175,000 - - - - 175,000 Right of Way- - - - - 475,000 - - - 475,000 Construction- - - - - - - - - - Total Expenditures: - - - - 175,000 475,000 - - - 650,000 TIP# I-15Description:This project will complete the design and construction of a new traffic signal in place of the existing stop-control on the 10th Street NW approach.Progress Summary:Future Impact on Operating Budget:The annual maintenance cost for this project is estimated to be $500.BudgetForecast Project Cost1Page 18 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6688 – New Zoning Code Definition for “Community Support Facilities” (Tate) (10 Minutes) Date: October 3, 2018 Department: Community Development Attachments: Vicinity Map Ordinance No. 6688 Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background Summary: Nexus Youth & Families (Nexus) (formerly Auburn Youth Resources) has applied for a Zoning Code Text Amendment for a new definition that encompasses their current and future planned land uses. The new definition is proposed to be a Permitted Use in the C-1, Light Commercial zoning district, and to be titled “Community Support Facilities”. Nexus’ current and future campus boundaries include 6 parcels located between Auburn Way S and ‘H’ St. SE; these properties are all zoned C-1. Nexus currently offers services for homeless and at-risk youth and families at their facilities just west of Les Gove Park and has plans for future expansions within their campus. Currently Nexus is in the process of rebuilding the existing Arcadia House and other future services would be fully covered by the language in the proposed definition (as verified by Nexus). Process/Public Involvement: The Planning Commission reviewed and discussed the proposed new Zoning Code definition at their June 5, 2018 and July 17, 2018 meetings, and held a public hearing at the September 5, 2018 meeting; after which they recommended unanimous approval to the City Council. Public notice was provided by posting a notice in the Seattle Times, mailing to neighbors within 300 ft., posting on the City’s public notice boards and website, and although not required, two Public Notice Boards were also installed on-site at the Nexus campus. No public comments in opposition were received (Nexus spoke on behalf of the new definition). Public Benefit: Nexus provides many different services for homeless and at-risk youth and young families in both Auburn and South King County in general. These services include everything from providing overnight shelter to legal services. The project currently underway, rebuilding the Arcadia House, will provide transitional housing for young adults and includes on-site case managers to assist their clients in their transition into sustainable housing. Future projects will be dependent on available funding. Page 19 of 109 New Definition: Although the new definition was specifically requested by Nexus, it would also apply to other areas within the City that meet the requirements and are in the C-1 zoning district. The definition would read as follows: ““Community Support Facility” means a building, or a group of buildings within a campus setting, owned and operated by a nonprofit corporation or government entity that provides supportive services to children and young adults (under the age of 26) and families (with a child or young adult under the age of 26), who are homeless, at risk of homelessness, at risk of exploitation, experiencing a disability that presents barriers to employment and housing stability; or generally require structured supportive services to be successful living in the community; by providing counseling and case management, transitional housing (housing for no more than two years), temporary housing (i.e. limited to overnight stay), and daytime drop-in services (e.g. meals, showers, counseling, etc.). This definition does not include facilities providing housing for criminal justice, parole, or probation programs. Community Support Facilities are not stand-alone “supportive housing” or “communal residences”." This use would then be listed as an outright Permitted use in the C-1 zone along with a requirement that any Community Support Facility would be located within 500 ft. of a transit stop. Request: Schedule Ordinance No. 6688 for action by City Council at the regular meeting on October 15, 2018. Rev iewed by Council Committees: Other: Planning, Legal Councilmember:Staff:Tate Meeting Date:October 8, 2018 Item Number: Page 20 of 109 0.2 NAD_1983_StatePlane_Washington_North_FIPS_4601_Feet Miles0.20.10 VICINITY MAP 9/25/2017Printed Date: Map Created by City of Auburn eGIS Imagery Date: May 2015 Information shown is for general reference purposes only and does not necessarily represent exact geographic or cartographic data as mapped. The City of Auburn makes no warranty as to its accuracy. 12TH ST SE AUBURN WAY S 'D' ST SESR 18 'F' ST SE'H' ST SE9TH ST SE 7TH ST SE 5TH ST SE 'M' ST SE'F' ST SE'H' ST SE8TH ST SE'D' ST SE6TH ST SE 4TH ST SE BNSF RAILWAY LES GOVE COMMUNITY CAMPUS 'C' ST SE8TH ST SE TERMINAL PARK ELEM. SCHOOL LIBRARY SENIOR CENTER COMM. CENTER NEXUS CLINIC ARCADIA HOUSE NORTH LOCATION OF EXISTING AND PROPOSED "ARCADIA HOUSE" BOUNDARIES OF NEXUS CONCEPTUAL CAMPUS PLAN ITEM 1 - VICINITY MAP - NEXUS Page 21 of 109 ORDINANCE NO. 6 6 8 8 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AMENDING CHAPTER 18.04 AND AMENDING SECTIONS TABLE 18.23.030, AND 18.57.040, OF THE CITY CODE, CREATING A NEW DEFINITION FOR COMMUNITY SUPPORT FACILITIES, ADDING COMMUNITY SUPPORT FACILITIES AS A PERMITTED USE IN THE C-1, LIGHT COMMERCIAL ZONING DISTRICT, AND ADDING AN ADDITIONAL SPECIFIC LAND USE STANDARD FOR THE SITING OF COMMUNITY SUPPORT FACILITIES. WHEREAS, Nexus Youth & Families, a non -profit organization, has submitted a Zoning Code Text Amendment request for a new definition titled “Community Support Facility” that would fully encompass their current and future planned land uses; and, WHEREAS, Nexus Youth & Families currently owns six parcels totaling approximately 2.31 acres and has right of first refusal on one additional 0.24 -acre property that is surrounded on three sides by their current holdings; and, WHEREAS, the seven parcels mentioned are currently zoned C -1, Light Commercial; and, WHEREAS, Nexus Youth & Families provides supportive services to children, young adults, and young families who are homeless, at risk of homelessness, at risk of exploitation, experiencing a disability that presents barriers to employment and housing stability; or generally require structured supportive services to be successful living in the community; and, WHEREAS, Nexus Youth & Families provides these services in South King County, where homelessness is a continuously growing concern; and, WHEREAS, the new definition of Community Support Facilities would apply City-wide to properties which are zoned C-1, Light Commercial; and, -------------------------------- Ordinance No. 6688 August 9, 2018 Page 1 of 3 Page 22 of 109 WHEREAS, Community Support Facilities would be limited to being owned and operated by non-profit organizations or government entities; and, WHEREAS, this new definition was requested by a private party (Nexus Youth & Families), however, could also be utilized by other entities meeting the applicable requirements; and, WHEREAS, the Planning Commission had an initial discussion on the new definition and requested additional information from Staff at the June 5, 2018 Planning Commission meeting; and, WHEREAS, the Planning Commission had a second discussion on the new definition at the July 17, 2018 Planning Commission meeting and directed Staff to advertise for a future Public Hearing; and, WHEREAS, a Notice of Application, Notice of Public Hearing, and Determination of Non-significance (DNS) was issued on July 23, 2018; with no comments received or appeal filed; and, WHEREAS, the Planning Commission held a public hearing on the proposed Zoning Code Text Amendment at the August 21, 2018 Planning Commission meeting, and made a recommendation of approval to the City Council. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: Section 1. Amendment to City Code. That Chapter 18.04, Sections Table 18.23.030, and Section 18.57.040 of the Auburn City Code be and the same hereby are amended to read as shown on Exhibit 1 to this Ordinance. Section 2. Implementation. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directions of this legislation. -------------------------------- Ordinance No. 6688 August 9, 2018 Page 2 of 3 Page 23 of 109 Section 14. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, section or portion of this ordinance, or the invalidity of the application thereof to any person or circumstance shall not affect the validity of the remainder of this ordinance, or the validity of its application to other persons or circumstances. Section 15. Effective date. This Ordinance shall take effect and be in force five days from and after its passage, approval and publication as provided by law. INTRODUCED: PASSED: APPROVED: CITY OF AUBURN NANCY BACKUS, MAYOR ATTEST: Danielle E. Daskam, City Clerk APPROVED AS TO FORM: Daniel B. Heid, City Attorney Published: -------------------------------- Ordinance No. 6688 August 9, 2018 Page 3 of 3 Page 24 of 109 Exhibit 1 Section A – Chapter 18.04 ACC ‘Definitions’ to be amended to read as follows: 18.04.240 Commercial use. “Commercial use” shall mean any activity or use of land which involves the buying, selling, processing or improving of things not produced on the land and having financial gain as the primary aim of the activity or use; whether or not such activity or use be for hire or on account of the buyer, seller, processor, or improver. 18.04.245 Commercial vehicle. “Commercial vehicle” means semi-truck tractors and/or semi-trailers (over 26,001 pounds gross vehicle weight rating) used in any commercial enterprise. 18.04.2460 Commercial recreation facility, indoor. “Commercial recreation facility, indoor” means a private for-profit or nonprofit establishment offering recreation or providing entertainment or games of skill to the general public for a fee or charge and wholly enclosed in the building. Typical uses include athletic and health club, pool or billiard hall, indoor swimming pool, bowling alley, skating rink or climbing gyms. 18.04.2471 Commercial recreation facility, outdoor. “Commercial recreation facility, outdoor” means a private for-profit or nonprofit establishment offering recreation or providing entertainment or games of skill to the general public for a fee or charge where any portion of the activity takes place in the open, excluding public parks. Typical uses include: racetracks; Page 25 of 109 miniature golf; skateboard park; swimming and wading, therapeutic facilities; and tennis, handball, basketball courts; batting cages, trampoline facilities. 18.04.2403 Commercial use. “Commercial use” shall mean any activity or use of land which involves the buying, selling, processing or improving of things not produced on the land and having financial gain as the primary aim of the activity or use; whether or not such activity or use be for hire or on account of the buyer, seller, processor, or improver. 18.04.2454 Commercial vehicle. “Commercial vehicle” means semi-truck tractors and/or semi-trailers (over 26,001 pounds gross vehicle weight rating) used in any commercial enterprise. 18.04.2468 Community retail establishment. “Community retail establishment” means stores, shops and businesses either individually or in a shared space setting serving a geographic area of the city that engage in merchandise sales. 18.04.247 Community support facility. “Community Support Facility” means a building, or a group of buildings within a campus setting, owned and operated by a nonprofit corporation or government entity that provides supportive services to children and young adults (under the age of 26) and families (with a child or young adult under the age of 26), who are homeless, at risk of homelessness, at risk of exploitation, experiencing a disability that presents barriers to employment and housing stability; or generally require structured supportive services to be successful living in the community; Page 26 of 109 by providing counseling and case management, transitional housing (housing for no more than two years), temporary housing (i.e. limited to overnight stay ), and daytime drop-in services (e.g. meals, showers, counseling, etc.). This definition does not include facilities providing housing for criminal justice, parole, or probation programs. Community Support Facilities are not stand-alone “supportive housing” or “communal residences”. 18.04.249 Communal residence. “Communal residence” is a business operated out of a single residential home without an owner occupant residing therein, where the residential home, or portions thereof, is/are rented to more than one individual through separate, unrelated lease or rental agreements. The fact that the individuals rent the residence or a portion thereof through separate, unrelated lease or rental agreements shall be prima facie evidence that the individuals are unrelated and do not meet the definition of “family” per ACC 18.04.360. Adult family homes, foster care homes, group residence facilities, special needs housing, and supportive housing are not communal residences. Page 27 of 109 Section B – ACC Table 18.23.030, uses allowed in commercial and industrial zones to be amended as follows: Table 18.23.030 Permitted, Administrative, Conditional and Prohibited Uses by Zone PERMITTED, ADMINISTRATIVE, CONDITIONAL AND PROHIBITED USES BY ZONE P – Permitted C – Conditional A – Administrative X – Prohibited LAND USE Zoning Designation Standards for Specific Land Uses C-N C-1 C-2 C-3 C-4 M-1 EP M-2 INDUSTRIAL, MANUFACTURING AND PROCESSING, WHOLESALING (list not included – not applicable to this agenda item) RECREATION, EDUCATION AND PUBLIC ASSEMBLY USES (list not included – not applicable to this agenda item) RESIDENTIAL (list not included – not applicable to this agenda item) RETAIL (list not included – not applicable to this agenda item) SERVICES Animal daycare (excluding kennels and animal boarding) A A A P A P X P ACC 18.57.040(A) Animal sales and services (excluding kennels and veterinary clinics) P P P P P P X P ACC 18.57.040(B) Banking and related financial institutions, excluding drive- through facilities P P P P P P P P Catering service P P P P A P A P Community Support Facility X P X X X X X X ACC 18.57.04(C) Daycare, including mini daycare, daycare center, preschools or nursery schools A P P P P P P X Dry cleaning and laundry service (personal) P P P P P P P P Equipment rental and leasing X X X P X P X P Kennel, animal boarding X X X A X A X A ACC 18.57.040(CD) Government facilities; this excludes offices and related uses that are permitted outright A A A A A A A A Hospital X P P P X P X P Lodging – Hotel or motel X P P P P A P A Medical – Dental clinic P P P P P P X X Page 28 of 109 Table 18.23.030 Permitted, Administrative, Conditional and Prohibited Uses by Zone TRANSPORTATION, COMMUNICATIONS AND INFRASTRUCTURE (list not included – not applicable to this agenda item) VEHICLE SALES AND SERVICES (list not included – not applicable to this agenda item) OTHER Any commercial use abutting a residential zone which has hours of operation outside of the following: Sunday: 9:00 a.m. to 10:00 p.m. or Monday – Saturday: 7:00 a.m. to 10:00 p.m. A A A A A A A A Other uses may be permitted by the planning director or designee if the use is determined to be consistent with the intent of the zone and is of the same general character of the uses permitted. See ACC 18.02.120(C)(6), Unclassified Uses. P P P P P P P P PERMITTED, ADMINISTRATIVE, CONDITIONAL AND PROHIBITED USES BY ZONE P – Permitted C – Conditional A – Administrative X – Prohibited LAND USE Zoning Designation Standards for Specific Land Uses C-N C-1 C-2 C-3 C-4 M-1 EP M-2 Mortuary, funeral home, crematorium A P X P X P X X Personal service shops P P P P P P X X Pharmacies P P P P P X X X Print and copy shop P P P P P P X X Printing and publishing (of books, newspaper and other printed matter) X A P P P P P P Professional offices P P P P P P P P Repair service – Equipment, appliances X A P P P P X P ACC 18.57.040(DE) Veterinary clinic, animal hospital A P P P P P X X Page 29 of 109 Section C – ACC 18.57.040, Standards for Specific Land Uses to be amended as follows: 18.57.040 Services A. Animal Daycare. 1. All Zones Where Permitted. a. All pets shall be properly licensed. b. For any dog that has been designated as a “dangerous dog” or “potentially dangerous dog” as defined by the Auburn City Code (ACC), the operator shall verify that the owner has complied with the regulations (on noticing, licensing, certificate of registration, restraining, etc.) contained in Chapter 6.35 ACC, Dangerous Dogs. The owner shall ensure the facility meets the requirements for a “proper enclosure” as set forth in ACC 6.01.010(A)(27). c. All fenced exercise areas must be at least 50 feet from a habitable residential structure. d. Adequate screening shall be required when abutting any residential use. e. General care of pets must be confined to inside of building and under supervision. f. Pets are permitted to be walked or exercised outside of building only under supervision and in accordance with all other applicable ordinances and laws. g. The exterior appearance of an animal daycare building must be compatible with the appearance of neighboring properties. B. Animal Sales and Services. 1. All Zones Where Permitted. a. All sales and services shall be for household pets only. b. Overnight boarding is allowed within a completely enclosed building; however, animal services or sales uses over 20,000 square feet in gross floor area that use a majority of their gross floor area for retail sales shall have no more than 15 percent of their gross floor area devoted to overnight boarding. c. Animal sales and services use must be completely enclosed except that outdoor animal runs or other areas in which dogs will be allowed outside of Page 30 of 109 an enclosed structure off leash (hereinafter “outdoor run”) are allowed subject to compliance with the following conditions: i. Outdoor runs shall not be permitted within 50 feet of a habitable residential structure. ii. The outdoor run may operate only between the hours of 8:00 a.m. and 6:00 p.m. iii. The facilities shall be constructed, maintained and operated so that neither the sound nor smell of any animals boarded or kept on the premises during the time that full enclosure is required can be discerned on other lots. C. Community Support Facility. 1. Community Support Facilities shall be located within 500 feet (walking distance) of a transit stop; and connected via sidewalks or an approved pedestrian facility. CD. Kennels, Animal Boarding. 1. All Zones Where Permitted. a. All pens shall be enclosed in an enclosed building. b. The property on which the kennel is to be located shall be no closer than 100 feet to any residential zone. c. Limited outdoor exercise runs or facilities shall be permitted so long as their hours of use are restricted to the hours between 8:00 a.m. and 6:00 p.m. d. The facility must be air conditioned. e. Exercise runs or facilities shall be a minimum of four feet by 10 feet. f. The facility shall maintain a minimum total of 25 square feet of kennel area per animal. This area may be comprised of cage area, runs, or exercise facilities. g. Any outdoor areas used for animal containment or exercise shall be maintained by removing animal waste on a daily basis for proper disposal as solid waste. h. Any runoff, wash-down water, or waste from any animal pen, kennel, containment, or exercise area shall be collected and disposed of in the sanitary sewer after straining of solids and hair and shall not be allowed to enter the stormwater drainage or surface water disposal system. Page 31 of 109 i. Strained solids and hair shall be properly disposed of as solid waste. DE. Repair Service – Equipment, Appliances. 1. C-1, C-2, and C-4 Zones. a. Any repairing done on the premises shall be incidental only, and limited to custom repairing of the types of merchandise sold on the premises at retail. The floor area devoted to such repairing shall not exceed 30 percent of the total floor area occupied by the particular enterprises. Page 32 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Monthly Water Usage Billing (Coleman) (15 Minutes) Date: October 3, 2018 Department: Finance Attachments: Memo Budget Impact: Administrativ e Recommendation: Council approve a change to the monthly utility billing process and changes to the billing statements. Background Summary: The City would like to implement monthly water consumption billing. With the completion of the Automated Metering Infrastructure project, meter reads can be obtained on demand enabling consumption to be billed on a monthly basis. All customers will now be billed at the same time with the same due date. Finance will begin sending a new billing statement effective January 1, 2019. Rev iewed by Council Committees: Councilmember:Staff:Coleman Meeting Date:October 8, 2018 Item Number: Page 33 of 109 Page 1 of 2 Interoffice Memorandum To: City Council From: Brenda Goodson-Moore, Utilities Customer Care Manager Shannon Bennett, Utilities Customer Care Supervisor CC: Nancy Backus, Mayor Shelley Coleman, Finance Director Date: October 3, 2018 Re: Utility Billing Changes – New Statements and Monthly Consumption Billing Background The City of Auburn historically billed utility customers every two months for all water, sewer, storm and solid waste charges. In 2007, the City changed to billing base rates monthly and continued to bill consumption bi-monthly. Consumption was billed bi-monthly to accommodate the reading of over 14,000 water meters both manually and by radio read. As a result, customers receive a bill every other month that is considerably higher than the previous month. In 2011, the Auburn City Council requested a review of the bi-monthly vs. monthly billing while considering returning to bi-monthly billing across the board. The Council ultimately decided that monthly billing was much more consistent. However, the ongoing issue of the fluctuating bills (base rate bill vs. the higher consumption bill) continues to plague customers trying to manage their budgets. In late 2017, the City completed the Automated Meter Infrastructure project, which enabled Utility Billing to obtain monthly, weekly, daily and hourly meter reads. This new technology not only enables much faster potential leak identification but also allows us to transition customers to monthly consumption billing. Benefits of Monthly Consumption Billing Monthly billing will allow customers the opportunity to improve budget planning, manage water consumption on a monthly rather than bi-monthly basis, and be alerted to possible leaks in a timelier manner. Page 34 of 109 Page 2 of 2 Staff currently bills utilities each week in five separate billing districts, totaling over 22,000 accounts. This transition to monthly billing will allow Finance to consolidate all of the districts into one. All customers will be billed on the same day, with the same due date. New Utility Billing Statement The new layout of the City of Auburn Utility Bill makes it easier to understand and provides customers with up to date information regarding their monthly charges. Next Steps Customers will receive the following notification starting two months prior to the changes: 1. Letter mailed to all utility customers the first week of November 2. City of Auburn Website Message 3. City of Auburn Online Bills Webpage Message 4. Special Message on Utility Bills Utility Billing will begin billing monthly consumption in January 2019 for December 2018 usage. During the transition, some customers will see prorated base rates and consumption on their bills in November and December. In order to bill all utility customers once a month, there will be some customers who see consumption on their bills in November, December and January. During this time, staff will be prepared to answer questions and concerns regarding these changes. Page 35 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Developer Fee Cost of Service Study (Coleman) (30 Minutes) Date: October 3, 2018 Department: Finance Attachments: No Attachments Av ailable Budget Impact: Administrativ e Recommendation: For information and discussion only. Background Summary: In May 2017, the City contracted with Financial Consulting Services Group (FCS) to perform a study to determine the cost of providing developer fee-related services, compare those costs to actual fees charged, and provide recommendations for establishing cost recovery policies for future developer fees. During the February 26, 2018 Council study session, the consultant discussed their approach, provided preliminary results and a comparison of Auburn’s fees to other area cities, and identified key policy issues for Council consideration. The consultant’s analysis showed that building services fees were fully recovering the cost of providing those services while fees for planning services were only recovering – in total – about 17% of the associated costs and engineering services fees were recovering about 34% of full cost. Based on the results of the FCS report, and input received from Council at the February 26 study session, and in order to achieve consistency with Resolution 5319 which states that City fees should be reflective of actual costs, staff have identified recommended adjustments to developer fees that begin aligning fees with cost of service. This presentation will (1) provide background and recommendations on a handful of application types where the difference between the fee and the cost of service are greatest, and (2) pose several policy questions regarding the long term position of City Council related to cost recovery: 1. Does Council support staff’s recommendations for adjustments to selected fees to be included in the 2019 fee resolution that will be transmitted to City Council in November? Staff will request direction on this item at the October 8 study session. 2. Does City Council maintain the philosophy stated in Resolution 5319 that seeks to establish fees that are reflective of actual costs? Staff will seek City Council direction on this question in early 2019 at a future study session. 3. What cost recovery policy should City Council adopt (100% recovery, 80% recovery, 50% recovery, etc.) and what is the timeframe for phasing in the implementation of this cost recovery policy? Staff will provide City Council with additional information related to this question in early 2019 at a future study session. Page 36 of 109 Rev iewed by Council Committees: Councilmember:Staff:Coleman Meeting Date:October 8, 2018 Item Number: Page 37 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: 2nd Quarter 2018 Financial Report (Coleman) (15 Minutes ) Date: September 11, 2018 Department: Financ e Attachments: Q2 2018 Financia Report Budget Impact: Adminis trative Rec ommendation: For dis cus s ion only. Background Summary: The quarterly financial report s ummarizes the general s tate of Citywide financ ial affairs and highlights s ignificant items or trends that the City Council s hould be aware of. The attac hment provides the year to date through June 2018 status report based on financial data available as of July 19, 2018 for the period ending June 30, 2018 and sales tax information representing busines s ac tivity that oc curred through April 2018. Reviewed by Counc il Committees : Counc ilmember:Staff:Coleman Meeting Date:October 8, 2018 Item Number: Page 38 of 109 Quarterly Financial Report Through Q2-2018 General Fund Summary Property TaxesSales TaxesOther TaxesIntergovernmental(Grants, etc.)DevelopmentService FeesCulture &RecreationOther Fees& ChargesOtherRevenuesPersonnelSupplies& ServicesIntergovernmentalOther ExpendituresRevenues Expenditures $0 $5 $10 $15 $20 $25 $30 MillionsYTD Budget YTD Actuals (Favorable) YTD Actuals (Unfavorable) General Fund Revenues and Expenditures (Through Q2-2018) $35.1 $36.8$36.0 $34.0 Total Revenues Total Expenditures $0 $10 $20 $30 $40 $50 MillionsCouncil& MayorAdministrativeServicesCommunity &Human ServicesMunicipal Court& ProbationHumanResourcesFinanceCity AttorneyCommunityDevelopmentJail - SCOREPolicePublic WorksParks, Arts& RecreationStreetsNon-Departmental$0 $2 $4 $6 $8 $10 $12 $14 $16 $18 MillionsYTD Budget YTD Actuals (Favorable) YTD Actuals (Unfavorable) General Fund Expenditures by Department (Through Q2-2018) 1 Page 39 of 109 Quarterly Financial Report Through Q2-2018 2 General Fund 2017 Summary of Sources and Uses Annual YTD YTD YTD Budget Budget Actual Actual Amount Operating Revenues Property Tax 6 21,281,000$ 11,204,300$ 11,179,408$ 10,964,115$ (24,892)$ (0.2)% Sales Tax 7-8 14,893,500 7,446,600 7,776,717 7,296,187 330,117 4.4 % Sales Tax - Pierce County Parks 77,250 37,300 49,563 46,279 12,263 32.9 % Sales Tax - Annexation Credit 1,250,000 1,250,000 1,056,364 1,006,644 (193,636)(15.5)% Criminal Justice Sales Tax 1,908,300 916,100 1,072,063 977,844 155,963 17.0 % Brokered Natural Gas Tax 353,600 232,400 91,424 102,635 (140,976)(60.7)% City Utilities Tax 9-10 3,991,000 1,878,100 1,849,170 1,855,464 (28,930)(1.5)% Admissions Tax 317,000 132,800 206,076 193,423 73,276 55.2 % Electric Tax 9-10 3,577,800 1,939,200 2,048,591 1,998,132 109,391 5.6 % Natural Gas Tax 9-10 1,006,200 683,500 699,014 727,262 15,514 2.3 % Cable Franchise Fee 11 986,100 490,800 486,701 502,006 (4,099)(0.8)% Cable Utility Tax - New in 2017 12 1,000,000 500,000 516,215 262,899 16,215 3.2 % Cable Franchise Fee - Capital 67,200 33,600 30,406 33,353 (3,194)(9.5)% Telephone Tax 9-10 1,408,200 724,600 690,962 711,186 (33,638)(4.6)% Garbage Tax (external)9-10 - - 66,702 63,427 66,702 N/A % Leasehold Excise Tax 40,000 33,500 177,145 174,508 143,645 428.8 % Gambling Excise Tax 303,180 151,800 151,190 175,858 (610)(0.4)% Taxes sub-total 52,460,330$ 27,654,600$ 28,147,711$ 27,091,221$ 493,111$ 1.8 % Business License Fees 12-13 223,200$ 116,300$ 197,357$ 111,944$ 81,057$ 69.7 % Building Permits 14 1,653,750 802,800 517,784 713,925 (285,016)(35.5)% Other Licenses & Permits 543,000 237,000 289,482 282,774 52,482 22.1 % Intergovernmental (Grants, etc.)15 6,134,150 2,930,638 3,113,230 3,046,274 182,592 6.2 % Charges for Services:16-18 General Government Services 16 61,300 36,000 41,605 41,494 5,605 15.6 % Public Safety 16 756,000 356,350 489,924 474,227 133,574 37.5 % Development Services Fees 17 1,019,100 634,300 351,908 599,939 (282,393)(44.5)% Culture and Recreation 18 2,366,680 1,251,300 1,368,831 1,229,849 117,531 9.4 % Fines and Penalties 19-20 885,300 445,900 503,588 443,925 57,688 12.9 % Fees/Charges/Fines sub-total 13,642,480$ 6,810,588$ 6,873,708$ 6,944,351$ 63,120$ 0.9 % Interest and Investment Earnings 20-21 68,000$ 29,700$ 176,279$ 96,597$ 146,579$ 493.5 % Rents and Leases 20-21 816,100 403,000 525,096 447,860 122,096 30.3 % Contributions and Donations 20-21 35,000 14,100 16,196 20,545 2,096 14.9 % Other Miscellaneous 20-21 236,800 112,700 150,102 123,142 37,402 33.2 % Transfers In 144,300 77,500 77,500 76,500 0 0.0 % Insurance Recoveries - Capital & Operating 105,000 12,500 32,523 20,086 20,023 160.2 % Other Revenues sub-total 1,405,200$ 649,500$ 977,696$ 784,730$ 328,196$ 50.5 % Total Operating Revenues 67,508,010$ 35,114,688$ 35,999,115$ 34,820,302$ 884,427$ 2.5 % Operating Expenditures Council & Mayor 1,319,943$ 634,400$ 582,102$ 562,892$ 52,298$ 8.2 % Administration 1,963,814 982,200 767,568 663,014 214,632 21.9 % Community & Human Services 1,488,828 707,100 509,006 405,631 198,094 28.0 % Municipal Court & Probation 2,644,145 461,828 355,018 336,192 106,809 23.1 % Human Resources 1,315,663 646,800 595,394 647,849 51,406 7.9 % Finance 1,565,731 799,100 735,988 739,290 63,112 7.9 % City Attorney 2,398,550 1,168,300 1,064,040 972,793 104,260 8.9 % Community Development 4,870,425 2,404,300 2,041,319 2,087,341 362,981 15.1 % Jail - SCORE 4,099,465 2,049,733 1,665,696 1,581,197 384,036 18.7 % Police 27,855,395 13,635,400 13,375,970 12,217,562 259,430 1.9 % Public Works 3,795,032 1,831,400 1,716,278 1,330,320 115,122 6.3 % Parks, Arts & Recreation 12,799,606 6,120,700 6,063,359 5,714,750 57,341 0.9 % Streets 4,039,204 1,837,500 1,746,251 1,684,953 91,249 5.0 % Non-Departmental 7,358,843 3,509,970 2,787,830 2,203,572 722,139 20.6 % Total Operating Expenditures 77,514,644$ 36,788,730$ 34,005,818$ 31,147,357$ 2,782,911$ 7.6 % 2018 2018 YTD Budget vs. Actual Favorable (Unfavorable) Percentage Page Ref 2 Page 40 of 109 Quarterly Financial Report Through Q2-2018 3 Executive Summary This Executive Summary provides an overview of the City’s overall financial position for the fiscal period ending June 30, 2018, reflecting financial data available as of July 19, 2018. General Fund: Through June 2018, General Fund revenues totaled $36.0 million compared to a budget of $35.1 million, and were $1.2 million higher than revenues collected through Q2-2017. Some notable variances to budget year-to-date include: • Property tax collections through Q2-2018 totaled $11.2 million, which was $25,000 below budget expectations and $215,000 more than was collected through Q2-2017. [page 6] • General Fund retail sales tax revenues totaled $7.8 million, exceeding budget by 4.4% or $330,000 and exceeding Q2-2017 collections by $481,000. The primary areas of significant increase in sales activity compared to Q2-2017 collections were the services, automotive, and wholesale trade categories. [pages 7-8] • The other taxes category performed favorably to budget in Q2-2018. Actual revenues collected through Q2-2018 was $7.0 million, which was $213,000, or 3.1% favorable to budget. Leasehold excise tax revenues collected through Q2-2018 exceeded budget by $144,000 due to a one-time tax receipt for the Emerald Downs property, which is tribally owned. Electric tax revenues collected during the same period exceeded budget by $109,000. These revenues were somewhat offset by unfavorable variances in brokered natural gas tax revenues and telephone tax revenues in the amount of $141,000 and $34,000, respectively. [pages 9-12] • Building permit revenue collected through Q2-2018 totaled $518,000, compared to a budget of $803,000. The number of building permits issued through Q2-2018 was 262, which represents a 34% decline over the number of permits issued through Q2- 2017. [page 14] • Development services revenues collected through Q2-2018 were $283,000, or 44.5%, unfavorable to budget. This variance was predominately due to plan check revenues not meeting budget expectations. [page 17] General Fund expenditures through the first half of 2018 totaled $34.0 million compared to a budget of $36.8 million, representing a 7.6% favorable variance to budget. All departments operated within their budget through Q2-2018. Year-to-date General Fund expenditures ended the period $2.9 million, or 9.2% higher than expenditures through Q2-2017. Salary and benefit costs increased by $1.8 million, or 10.2%, compared to salary and benefit expenditures through Q2-2017. This year-over-year increase was due primarily to an increase in Council-approved FTEs (Full Time Equivalents), cost of living adjustments (COLAs), and increased costs associated with healthcare benefits. Additionally, year-to-date transfers out to other funds increased by $373,000 in 2018 compared to the same period the year prior. This included a one-time transfer-out of $1.5 million to the Cumulative Reserve Fund. 3 Page 41 of 109 Quarterly Financial Report Through Q2-2018 4 Street Funds: The City’s three street funds are special revenue funds wherein 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 the first two quarters of 2018, Arterial Street Fund revenues totaled $1.3 million as compared to collections of $2.8 million through Q2-2017, while expenditures totaled $2.1 million as compared to expenditures of $3.5 million spent during the same period last year. [pages 24–25] Local Street Fund revenues of $1.3 million exceeded year-to-date budget expectations by $390,000 or 47.2%, due to higher than anticipated sales tax revenues from local construction projects; last year’s collections through the second quarter totaled $1.4 million. Expenditures were $563,000 as compared with $210,000 in Q2-2017. [pages 26–27] Lastly, the Arterial Street Preservation Fund revenues totaled $1.2 million through Q2-2018, which was approximately $56,000 higher than revenues through Q2-2017. Expenditures totaled $266,000 versus $831,000 through Q2-2017. 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 28–29] $35.1 M $36.8 M $36.0 M $34.0 M $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 Revenues Expenditures $ Millions General Fund Revenues vs. Expenditures Through Q2-2018 2018 YTD Actual 2018 YTD Budget 4 Page 42 of 109 Quarterly Financial Report Through Q2-2018 5 Enterprise Funds: The City’s enterprise funds account for operations with revenues primarily provided from user fees, charges or contracts for services. Through June 30, 2018 the Water Fund experienced operating income before depreciation of $2.1 million compared to $2.0 million during the same period last year. The Sewer Fund ended the first quarter of 2018 with operating income before depreciation of $1.0 million versus $1.2 million through Q2-2017. The Stormwater Fund ended the second quarter with operating income before depreciation of $1.3 million compared to $1.5 million in Q2-2017. The Solid Waste Fund ended the quarter with operating income of $376,000 compared to $395,000 for the same period in 2017. [pages 31–34] 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 had sufficient revenues to cover year-end expenditures. [page 34] Investment Portfolio: The City’s total cash and investments at the end of the Q2-2018 totaled $141.2 million, and compares to $132.4 million at the end of Q1-2018. [attachment] 5 Page 43 of 109 Quarterly Financial Report Through Q2-2018 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 Q2-2018 totaled $11.2 million and were $25,000, or 0.2%, below budget expectations. While year-to-date revenues fell slightly short of budget expectations in 2018, they were $215,000, or 2.0% higher than revenues collected through Q2- 2017. 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 $24.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsProperty Taxes 2018 Budget 2018 YTD Actual 2017 Actual $14.4 $15.8 $17.2 $17.9 $20.8 $11.2 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 2013 2014 2015 2016 2017 2018 YTDMillionsProperty Tax Revenue Actuals 6 Page 44 of 109 Quarterly Financial Report Through Q2-2018 7 Sales tax collections through Q2-2018 totaled $8.9 million, of which $7.8 million was distributed to the General Fund and $1.1 million was distributed to the Local Street Fund (SOS) program as per financial practice. Total sales tax revenue distributions to the General Fund through Q2- 2018 exceeded budget expectations by $330,000, or 4.4%, and were $48,000 (6.6%) over the same period in 2017. $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) 2018 Budget 2018 YTD Actual 2017 Actual $12.4 $13.8 $14.5 $14.6 $14.9 $7.8 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 2013 2014 2015 2016 2017 2018 YTDMillionsSales and Use Tax General Fund Only Actuals 7 Page 45 of 109 Quarterly Financial Report Through Q2-2018 8 The following table breaks out the City’s base sales taxes, excluding Pierce County Parks Sales Tax, Criminal Justice Sales Tax, and Annexation Credit Sales Tax, by major business sector. Total sales tax revenue collected through Q2-2018 exceeded prior year collections by $423,000, or 5.0%. The business sectors showing the largest increase in revenues compared to last year were the services, automotive, and wholesale trade industries. Sales tax revenue on construction is transferred to the Local Street Fund (Fund 103) for local street repair and maintenance. Through the second quarter of 2018, this totaled $1.1 million, which was $58,000 less than collections through Q2-2017 but was $347,000 higher than budget. 2017 2018 Component Group Actual Actual Amount Construction 1,196,893$ 1,139,316$ (57,577)$ (4.8)% Manufacturing 374,489 340,007 (34,482)(9.2)% Transportation & Warehousing 47,245 52,991 5,746 12.2 % Wholesale Trade 641,660 744,827 103,168 16.1 % Automotive 1,899,945 2,020,503 120,558 6.3 % Retail Trade 2,426,714 2,501,011 74,297 3.1 % Services 1,866,349 2,042,381 176,032 9.4 % Miscellaneous 39,785 74,998 35,213 88.5 % YTD Total 8,493,080$ 8,916,034$ 422,954$ 5.0 % Comparison of Sales Tax Collections by SIC Group Through June Change from 2017 Percentage $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsSales Tax on Construction Transfer 2018 Budget 2018 YTD Actual 2017 Actual 8 Page 46 of 109 Quarterly Financial Report Through Q2-2018 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 Q2-2018 totaled $5.4 million and exceeded year-to-date budget by $129,000, or 2.5%. $1.9 $1.8 $2.3 $2.3 $2.6 $1.1 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 2013 2014 2015 2016 2017 2018 YTDMillionsSales Tax On Construction Revenue Actuals $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsUtility Tax 2018 Budget 2018 YTD Actual 2017 Actual 9 Page 47 of 109 Quarterly Financial Report Through Q2-2018 10 Favorable variances in electric and solid waste revenues offset lower collections in telephone utility taxes. 2017 2018 2018 Utility Tax Type YTD Actual YTD Budget YTD Actual Amount Amount City Interfund Utility Taxes 1,855,464$ 1,878,100$ 1,849,170$ $ (6,294)(0.3)% $ (28,930)(1.5)% Electric 1,998,132 1,939,200 2,048,591 50,459 2.5 %109,391 5.6 % Natural Gas 727,262 683,500 699,014 (28,248) (3.9)%15,514 2.3 % Telephone 711,186 724,600 690,962 (20,225) (2.8)%(33,638) (4.6)% Solid Waste (external)63,427 0 66,702 3,275 5.2 %66,702 N/A % YTD Total 5,355,471$ 5,225,400$ 5,354,438$ $ (1,033)(0.0)% $ 129,038 2.5 % Through June 2018 Utility Tax by Type 2018 vs. 2017 Actual 2018 vs. Budget Percentage Percentage $9.5 $10.0 $9.7 $10.0 $10.2 $5.4 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 2013 2014 2015 2016 2017 2018 YTDMillionsUtility Tax Revenues Actuals 10 Page 48 of 109 Quarterly Financial Report Through Q2-2018 11 Cable Franchise Fees, which are collected quarterly, totaled $487,000 and were $4,000, or 0.8%, under budget through Q2 2018. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterThousandsCable Franchise Fee 2018 Budget 2018 YTD Actual 2017 Actual $0.9 $0.9 $0.9 $1.0 $1.0 $0.5 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 2013 2014 2015 2016 2017 2018 YTDMillionsCable Franchise Fee Actuals 11 Page 49 of 109 Quarterly Financial Report Through Q2-2018 12 Cable Utility Tax (New in 2017). In September 2016, City Council 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. The collections through Q2-2018 totaled $516,000 and were favorable to budget by $16,000, or 3.2%. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterThousandsCable Utility Tax (New in 2017) 2018 Budget 2018 YTD Actual 2017 Actual 12 Page 50 of 109 Quarterly Financial Report Through Q2-2018 13 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 2018 totaled $197,000 due to a large percentage of business owners having paid their 2018 annual business license fees in Q1-2018. $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 2018 Budget 2018 YTD Actual 2017 Actual $236 $171 $282 $225 $163 $197 $0 $50 $100 $150 $200 $250 $300 $350 2013 2014 2015 2016 2017 2018 YTDThousandsBusiness License Revenues Actuals 13 Page 51 of 109 Quarterly Financial Report Through Q2-2018 14 Building permit revenues collected through June 2018 totaled $518,000, as compared to a year- to-date budget of $803,000. A total of 262 building permits were issued through Q2-2018 compared to 398 building permits issued through Q2-2017, representing a 34.2% reduction. Of the building permit revenues collected through Q2-2018, 73% was attributable to commercial projects and the remaining 27% was predominately single family housing permits. Major projects contributing to building permit revenues this quarter include projects at the Olympic Middle School, Skills, Inc., various Boeing sites, and multiple sites at the Outlet Collection – Seattle. In addition, permits were issued for single family housing developments, most notably Wyncrest II. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsBuilding Permits 2018 Budget 2018 YTD Actual 2017 Actual $2.1 $1.5 $1.2 $2.0 $1.2 $0.5 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2013 2014 2015 2016 2017 2018 YTDMillionsBuilding Permits Actuals 14 Page 52 of 109 Quarterly Financial Report Through Q2-2018 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 Q2-2018 totaled $3.1 million and were $183,000, or 6.2%, favorable to budget. The majority of the amount above budget was increased distributions from the state for marijuana excise taxes. The Q1-2018 distribution for this line item included make-up monies from the September and December 2017 distributions. Also, the 2018 distribution is based upon a higher distribution base than 2017. 2017 2018 2018 Revenue YTD Actual YTD Budget YTD Actual Amount Amount Federal Grants 72,562$ 100,000$ 110,084$ $ 37,522 51.7 % $ 10,084 N/A % State Grants 70,234 94,000 89,821 19,587 27.9 %(4,179) (4.4)% Interlocal Grants 65,000 40,000 28,817 (36,183) 0.0 %(11,183)N/A % Muckleshoot Casino Services 399,837 368,488 496,975 97,137 24.3 %128,486 34.9 % State Shared Revenues: Streamlined Sales Tax 952,157 944,300 895,247 (56,909) (6.0)%(49,053) (5.2)% Motor Vehicle Fuel Tax 533,050 606,500 577,019 43,969 8.2 %(29,481) (4.9)% Criminal Justice - High Crime 286,498 96,000 104,972 (181,526) (63.4)%8,972 9.3 % Criminal Justice - Population 10,658 12,200 11,190 532 5.0 %(1,010) (8.3)% Criminal Justice - Special Prog.38,776 40,400 40,540 1,764 4.5 %140 0.3 % Marijuana Revenues 19,665 32,500 145,971 126,306 642.3 %113,471 349.1 % State DUI 5,877 6,000 5,837 (40) (0.7)%(163) (2.7)% Fire Insurance Tax 78,078 75,000 79,798 1,720 2.2 %4,798 6.4 % Liquor Excise 188,473 191,250 199,801 11,328 6.0 %8,551 4.5 % Liquor Profit 325,408 324,000 327,159 1,751 0.5 %3,159 1.0 % Total State Shared:2,438,640 2,328,150 2,387,534 (51,106)(2.1)%59,384 2.6 % YTD Total 3,046,274$ 2,930,638$ 3,113,230$ 66,956$ 2.2 %182,592$ 6.2 % Through June 2018 Intergovernmental Revenues (Grants, Entitlements & Services) 2018 vs. 2017 Actual 2018 vs. Budget % Change % Change $4.8 $5.1 $5.3 $5.7 $6.1 $3.1 $0 $1 $2 $3 $4 $5 $6 $7 $8 2013 2014 2015 2016 2017 2018 YTDMillionsIntergovernmental Revenues (Grants, Entitlements & Services) Actuals 15 Page 53 of 109 Quarterly Financial Report Through Q2-2018 16 Charges for Services consist of general governmental service charges, public safety charges, development service fees, and cultural & recreation fees. Total charges for services collected through June 2018 totaled $2.3 million, which was $26,000 less than anticipated through the first half of 2018. This was due to lower than expected development services revenues, offset by increases in public safety and culture and recreation revenues, as explained below. General governmental charges for service collected through Q2-2018 totaled $42,000 and were $6,000 favorable to budget. Public safety revenues consist of revenues received for police officer extra duty security services – where officers are contracted for and reimbursement is made by the hiring contractor. This also includes reimbursements from the Muckleshoot Indian Tribe (MIT) for a full-time dedicated police officer and associated expenditures as well as monies collected from the Auburn School District and the Criminal Justice Training Commission (CJTC) for services rendered. Public safety revenues collected through Q2-2018 totaled $490,000 and compare to a budget of $356,000. The majority of the favorability seen in this revenue source is due to extra duty overtime reimbursements exceeding budget expectations – due to increased requests for police officer security services. 2017 2018 2018 Revenue YTD Actual YTD Budget YTD Actual Amount Amount General Government 41,494$ 36,000$ 41,605$ $ 111 0.3 % $ 5,605 15.6 % Public Safety 474,227 356,350 489,924 15,698 3.3 %133,574 37.5 % Development Services 599,939 634,300 351,908 (248,032) (41.3)%(282,393) (44.5)% Culture & Recreation 1,229,849 1,251,300 1,368,831 138,982 11.3 %117,531 9.4 % YTD Total 2,345,509$ 2,277,950$ 2,252,268$ (93,241)$ (4.0)% $ (25,682)(1.1)% Through June 2018 Charges for Services by Type 2018 vs. 2016 Actual 2018 vs. Budget Percentage Percentage $3.3 $3.9 $4.3 $4.1 $4.2 $2.3 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2013 2014 2015 2016 2017 2018 YTDMillionsCharges for Services Actuals 16 Page 54 of 109 Quarterly Financial Report Through Q2-2018 17 Development services fee collections, which primarily consist of plan check fees, totaled $352,000 and ended the quarter $283,000, or 44.5%, under budget expectations. Total plan check revenues collected through Q2-2018 totaled $204,000 as compared to $464,000 collected the same period last year. Plan check revenues collected in Q2-2018 include both commercial and residential projects, including projects at Boeing and the Outlet Collection as well as single family housing plans – most notably Willow Place. $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 2018 Budget 2018 YTD Actual 2017 Actual $1.1 $1.1 $1.4 $1.0 $0.9 $0.4 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 2013 2014 2015 2016 2017 2018 YTDMillionsDevelopment Service Fees Actuals 17 Page 55 of 109 Quarterly Financial Report Through Q2-2018 18 Culture and recreation revenues collected through Q2-2018 totaled $1.4 million, exceeding collections in the same period last year by $139,000 and exceeding Q2-2018 budget expectations by $118,000. The majority of the year-over-year increase in revenues was seen in green fee revenues at the Auburn Golf Course and recreational class revenues. The majority of culture and recreation 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 2018 Budget 2018 YTD Actual 2017 Actual $2.1 $2.2 $2.3 $2.3 $2.4 $1.4 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 2013 2014 2015 2016 2017 2018 YTDMillionsCulture & Recreation Revenues Actuals 18 Page 56 of 109 Quarterly Financial Report Through Q2-2018 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 Q2-2018 totaled $504,000 compared to a budget of $446,000. 2017 2018 2018 Month YTD Actual YTD Budget YTD Actual Amount Amount Civil Penalties 4,578$ 2,200$ 49,378$ $ 44,800 978.6 % $ 47,178 2,144.5 % Civil Infraction Penalties 253,216 248,900 262,485 9,269 3.7 %13,585 5.5 % Redflex Photo Enforcement 6,063 0 4,616 (1,446) (23.9)%4,616 N/A % Parking Infractions 74,384 76,300 68,184 (6,199) (8.3)%(8,116) (10.6)% Criminal Traffic Misdemeanor 28,366 20,500 28,616 250 0.9 %8,116 39.6 % Criminal Non-Traffic Fines 13,824 20,400 26,032 12,208 88.3 %5,632 27.6 % Criminal Costs 25,204 22,000 23,337 (1,867) (7.4)%1,337 6.1 % Non-Court Fines & Penalties 38,292 55,600 40,938 2,646 6.9 %(14,662) (26.4)% YTD Total 443,925$ 445,900$ 503,588$ $ 59,662 13.4 % $ 57,688 12.9 % Through June 2018 Fines & Penalties by Type 2018 vs. 2017 Actual 2018 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 2018 Budget 2018 YTD Actual 2017 Actual 19 Page 57 of 109 Quarterly Financial Report Through Q2-2018 20 Miscellaneous revenues consist of investment earnings, income from facility rentals, contributions & donations, and other income including the quarterly purchasing card (P-card) rebate monies. Revenues collected in this category through Q2-2018 totaled $868,000 and exceeded budget expectations by $308,000. The majority of the increase in revenues was seen in interest and investments as well as the rents and leases category. Interest and investments revenues collected through Q2-2018 exceeded budget expectations by $147,000. This year-over-year increase in investment revenue is primarily due to the increase in the State Investment Pool interest rate. Rents and lease revenue collected through Q2-2018 totaled $525,000 and was $77,000 higher than what was collected through Q2-2017. The increase in revenues collected was seen in facility rentals: miscellaneous parks unearned revenue (deposits) through Q2-2018 increased by $34,000 compared to collections through Q2-2017. In addition, golf cart rental revenues collected year-to-date were $23,000 more than was collected through Q2-2017. Lastly, other miscellaneous revenues exceeded budget expectations by $37,000 mainly due to assessments for code compliance property abatements and sales of unclaimed property. $1.4 $1.2 $0.9 $0.9 $0.9 $0.5 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 2013 2014 2015 2016 2017 2018 YTDMillionsFines & Penalties Actuals 2017 2018 2018 Month YTD Actual YTD Budget YTD Actual Amount Amount Interest & Investments 96,597$ 29,700$ 176,279$ 79,683$ 82.5 %146,579$ 493.5 % Rents & Leases 447,860 403,000 525,096 77,236 17.2 %122,096 30.3 % Contributions & Donations 20,545 14,100 16,196 (4,349)(21.2)%2,096 14.9 % Other Miscellaneous Revenue 123,142 112,700 150,102 26,960 21.9 %37,402 33.2 % YTD Total 688,144$ 559,500$ 867,673$ 179,529$ 26.1 %308,173$ 55.1 % Miscellaneous Revenues by Type Through June 2018 2018 vs. 2017 2018 vs. Budget Percentage Percentage 20 Page 58 of 109 Quarterly Financial Report Through Q2-2018 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 Q2-2018 totaled $1.9 million, exceeding budget expectations by $653,000 and exceeding prior year collections through Q2-2017 by $171,000. Real estate sales in Q2-2018 represent the sale of both commercial properties and single family residences. Commercial sales in Q2-2018 included the sale of several multi-family properties, vacant land, an auto dealership and the sale of a hotel and a motel. $0.7 $1.0 $1.0 $1.2 $1.5 $0.9 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 2013 2014 2015 2016 2017 2018 YTDMillionsMiscellaneous Revenues Actuals 2017 2018 2018 Month Actual Budget Actual Amount Amount Jan 224,044$ 200,800$ 240,414$ 16,371$ 7.3 %39,614$ 19.7 % Feb 249,683 200,800 200,783 (48,899) (19.6)%(17) (0.0)% Mar 326,044 200,800 255,218 (70,826) (21.7)%54,418 27.1 % Apr 234,480 200,800 362,999 128,519 54.8 %162,199 80.8 % May 299,251 200,800 427,054 127,803 42.7 %226,254 112.7 % Jun 353,807 200,800 371,816 18,009 5.1 %171,016 85.2 % YTD Total 1,687,310$ 1,204,800$ 1,858,286$ 170,976$ 10.1 %653,486$ 54.2 % 2018 vs. 2017 2018 vs. Budget Percentage Real Estate Excise Tax Revenues June 2018 Percentage 21 Page 59 of 109 Quarterly Financial Report Through Q2-2018 22 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsReal Estate Excise Tax 2018 Budget 2018 YTD Actual 2017 Actual $2.2 $2.5 $4.6 $4.3 $3.6 $1.9 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 2013 2014 2015 2016 2017 2018 YTDMillionsReal Estate Excise Tax Revenues Actuals 22 Page 60 of 109 Quarterly Financial Report Through Q2-2018 23 Pet Licensing Through the second quarter of 2018, 2,099 pet licenses were sold, resulting in $55,995 in revenue. Through the second quarter of 2017, 2,178 licenses were sold, resulting in $56,315 in revenue. As of March 2018, pet licensing services are provided by the Auburn Valley Humane Society. Previously these services were provided by PetData. 0 500 1,000 1,500 2,000 2,500 $0 $5 $10 $15 $20 $25 JanFebMarAprMayJunJulAugSepOctNovDecNumber of Licenses IssuedLicense Revenue( thousands )Pet Licensing Revenues vs Licenses Sold 2018 vs 2017 2017 License Revenue 2018 License Revenue 2017 Licenses Issued 2018 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 2018 vs 2017 2018 License Revenue 2018 Licenses Issued 2017 Licenses Issued 23 Page 61 of 109 Quarterly Financial Report Through Q2-2018 24 Street Funds This section provides a financial overview of the City’s three street funds for the quarter ending June 30, 2018. 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). 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, 2018 there were 25 separate street projects budgeted in this fund. Through June, revenues collected totaled $1.3 million as compared with collections of $2.8 million through Q2-2017. Total expenditures through Q2-2018 were $2.1 million as compared to $3.5 million expended through Q2-2017. Variances in revenues and expenditures are largely due to the timing of capital expenditures and any subsequent reimbursement via federal grants, as well as the current phase of individual capital projects. Fund 102 - Arterial Street 2017 Summary of Sources and Uses Annual YTD YTD YTD Report Period: June 2018 Budget Budget Actual Actual Amount Revenues Federal Grants 2,247,600$ 766,290$ 323,675$ 1,842,767$ (442,616)$ (57.8)% State Grants 176,500 53,043 - 190,278 (53,043) (100.0)% Motor Vehicle Fuel and Multimodal Taxes 585,000 277,729 303,360 265,954 25,631 9.2 % Developer Contributions - - - 46,233 - Miscellaneous Revenue 466,200 155,400 1,313 - (154,087) (99.2)% Other Governmental Agencies - - - - - Public Works Trust Fund Loans - - - - - Operating Transfer In 1,833,417 735,721 613,996 470,254 (121,725) (16.5)% Investment Income 2,600 1,177 14,465 4,723 13,287 1128.5 % Total Revenues 5,311,317$ 1,989,361$ 1,256,809$ 2,820,209$ (732,552)$ (36.8)% Expenditures Salary and Benefits 551,000$ 283,810$ 196,445$ 354,273$ 87,365$ 30.8 % Capital Outlay 5,418,300 1,786,210 1,431,033 2,885,700 355,177 19.9 % Subtotal - Capital Project Expenditures 5,969,300 2,070,020 1,627,477 3,239,973 442,542 21.4 % Services and Charges 405,200 49,361 170,642 36,068 (121,282) (245.7)% Interfund Payments for Services 78,859 39,430 39,432 38,340 (3) (0.0)% Debt Service Principal and Interest 208,818 208,818 208,817 209,511 1 0.0 % Operating Transfer Out 55,615 27,808 15,490 6,139 12,318 44.3 Total Expenditures 6,717,792$ 2,395,435$ 2,061,858$ 3,530,031$ 333,577$ 13.9 % Net Change in Fund Balance (1,406,475)$ (406,074)$ (805,049)$ (709,822)$ (398,975)$ 98.3 % Beg. Fund Balance, January 2018 2,584,136$ Net Change in Fund Balance, June 2018 (805,049) Ending Fund Balance, June 2018 1,779,087$ 2018 Budgeted Ending Fund Balance 1,177,661$ 2018 2018 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 24 Page 62 of 109 Quarterly Financial Report Through Q2-2018 25 This table presents the status of the projects with the most significant budget impact on the fund: Notes: • Due to weather, including a wet spring, many projects will not be completed until later in 2018 and new projects will be moving into construction in the third and fourth quarters of 2018. $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 102 -Capital Project Expenditures 2018 YTD Budget 2018 YTD Actual 2017 YTD Actual 2018 YTD Actual: $1.6M 2018 Annual Budget: $6.0M 2017 YTD Actual: $3.2M Name Annual Budget YTD Actual Remaining 22nd St NE & I St NE Intersection $1.1M $0.6M $0.6M AWS Corridor Safety Improvements $0.8M $0.5M $0.4M A St SE & 37th St SE $0.8M $0.1M $0.7M All Other Projects (21 Others Budgeted)$3.2M $0.5M $2.7M Total $6.0M $1.6M $4.3M *Components may not sum to total due to rounding. Fund 102 - Arterial Street Capital Projects Status * 25 Page 63 of 109 Quarterly Financial Report Through Q2-2018 26 Fund 103 – Local Street Fund The Local Street Fund is a special revenue fund where the revenues from sales taxes on construction are used for local street repair. Through June 30, 2018 revenues in this fund totaled $1.3 million, exceeding year-to-date budget expectations by $390,000 due to higher than anticipated sales tax revenues from local construction projects. This is consistent with collections of $1.4 million through Q2-2017. Total expenditures through Q2-2018 were $563,000 and compare to expenditures of $210,000 through Q2-2017. Historically, well over half of this fund’s annual expenditures occur in the final four months of each year due to the weather sensitivity of pavement construction (this work needs to be done primarily in the summer and early fall). Highlighted in the table below and shown in the following graph are the fund’s total expenditures related to capital projects. Fund 103 - Local Street Fund 2017 Summary of Sources and Uses Annual YTD YTD YTD Report Period: June 2018 Budget Budget Actual Actual Amount Revenues Sales Tax on Construction 1,750,000$ 774,167$ 1,139,316$ 1,196,893$ 365,149$ 47.2 % Operating Transfer In 150,000 150,000 150,000$ 150,000 - 0.0 % Interest Earnings 9,100 4,175 28,630$ 11,881 24,456 585.8 % Total Revenues 1,909,100$ 928,342$ 1,317,946$ 1,358,774$ 389,604$ 42.0 % Expenditures Salary and Benefits 148,817$ 68,039$ 66,926$ 64,852$ 1,112$ 1.6 % Capital Project Expenditures 3,429,298 715,640 487,757 133,420 227,884 31.8 % Services and Charges 700 350 2,236 294 (1,886) (538.1)% Interfund Payments for Services 12,239 6,120 6,120 5,958 (1) (0.0)% Operating Transfer Out 516 258 145 5,700 113 43.9 Total Expenditures 3,591,570$ 790,407$ 563,184$ 210,224$ 227,223$ 28.7 % Net Change in Fund Balance (1,682,470)$ 137,935$ 754,762$ 1,148,550$ 616,827$ 447.2 % Beg. Fund Balance, January 2018 2,943,350$ Net Change in Fund Balance, June 2018 754,762 Ending Fund Balance, June 2018 3,698,112$ 2018 Budgeted Ending Fund Balance 1,260,880$ 2018 2018 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 26 Page 64 of 109 Quarterly Financial Report Through Q2-2018 27 This table presents the status of the projects with the most significant budget impact on the fund: Notes: • The 2017 Local Street Reconstruction Project began construction in 2017 and has continued into 2018 due to weather limitations in 2017. The carry-forward for this project was approved in 2018 BA#4. • 2018 Local Street Pavement Reconstruction was awarded by Council on 6/18/2018. • 2018 Citywide Pavement Patching and Overlay was awarded by Council on 6/25/2018. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 103 -Capital Project Expenditures 2018 YTD Budget 2018 YTD Actual 2017 YTD Actual 2018 Annual Budget : $3.4M 2017 YTD Actual: $0.1M 2018 YTD Actual: $0.5M Name Annual Budget YTD Actual Remaining 2018 Local Street Pavement Reconstruction $1.8M $0.1M $1.7M 2018 Citywide Pavement Patching & Overlay $0.9M $0.0M $0.9M 2017 Local Street Reconstruction & Preservation $0.7M $0.4M $0.3M All Other Projects (1 Other Budgeted)$0.1M $0.0M $0.1M Total $3.4M $0.5M $2.9M *Components may not sum to total due to rounding. Fund 103 - Local Street Capital Projects Status* 27 Page 65 of 109 Quarterly Financial Report Through Q2-2018 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 2018 include 15th Street NE/NW Preservation, South 277th Street Preservation, and Citywide Pavement Patching and Overlay. Through Q2-2018, revenues totaled $1.2 million, approximately $56,000 higher than the same period last year. Total expenditures through Q2-2018 were $266,000, as compared to expenditures of $831,000 through Q2-2017. Historically, the majority of this fund’s expenditures occur in the second half of each year due to the weather sensitivity of pavement construction (this work needs to be done primarily in the summer and early fall). Highlighted in the table below and shown in the following graph are the fund’s total expenditures related to capital projects. Fund 105 - Arterial Street Preservation 2017 Summary of Sources and Uses Annual YTD YTD YTD Report Period: June 2018 Budget Budget Actual Actual Amount Revenues City Utility Tax 700,000$ 344,771$ 308,195$ 309,244$ (36,576)$ (10.6)% Electric Utility Tax 715,600 390,036 409,718 399,626 19,682 5.0 % Natural Gas Utility Tax 201,200 134,984 139,803 145,452 4,819 3.6 % Cable TV Tax 197,200 97,565 103,243 103,788 5,678 5.8 % Telephone Utility Tax 281,600 146,167 126,231 142,237 (19,936) (13.6)% Garbage Utility Tax (External Haulers)- - 10,746 10,571 10,746 Grants 1,511,840 219,950 68,224 25,065 (151,726) (69.0)% Developer Mitigation Fees - - - - - Operating Transfer In 2,212,400 2,212,400 33,845 14,647 (2,178,555) (98.5)% Interest Earnings 4,900 2,450 19,095 12,531 16,645 679.4 % Total Revenues 5,824,740$ 3,548,323$ 1,219,099$ 1,163,162$ (2,329,224)$ (65.6)% Expenditures Salary and Benefits 225,000$ 84,789$ 170,299$ 199,979$ (85,510)$ (100.8)% Capital Outlay 5,895,840 2,369,517 95,379 620,468 2,274,138 96.0 % Subtotal - Capital Project Expenditures 6,120,840 2,454,306 265,678 820,447 2,188,628 89.2 % Supplies - - - - - Services and Charges 150,000 - - - - Operating Transfer Out 46,100 46,100 - 10,197 46,100 100.0 Total Expenditures 6,316,940$ 2,500,406$ 265,678$ 830,644$ 2,234,728$ 89.4 % Net Change in Fund Balance (492,200)$ 1,047,917$ 953,421$ 332,518$ (94,496)$ (9.0)% Beg. Fund Balance, January 2018 2,039,837$ Net Change in Fund Balance, June 2018 953,421 Ending Fund Balance, June 2018 2,993,258$ 2018 Budgeted Ending Fund Balance 1,547,637$ 2018 2018 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 28 Page 66 of 109 Quarterly Financial Report Through Q2-2018 29 This table presents the status of the projects with the most significant impacts on the fund: Notes: • Construction on the 15th Street NE/NW Preservation project was delayed from 2017 to 2018 due to the Puget Sound Regional Council’s (PSRC’s) modification of the Grant’s obligation year to FY 2018. This revision was part of a region-wide effort to address federal grant funding restrictions for FY 2017, 2018, 2019 and 2020, and means that funds could not be expended until 2018. • 15th Street NE/NW Preservation was awarded by Council on 5/7/2018. • South 277th Street Preservation was awarded by Council on 7/16/2018. • 2018 Citywide Pavement Patching and Overlay was awarded by Council on 6/25/2018. $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 105 -Capital Project Expenditures 2018 YTD Budget 2018 YTD Actual 2017 YTD Actual 2018 Annual Budget: $6.1M 2017 YTD Actual: $0.8M 2018 YTD Actual: $0.3M Name Annual Budget YTD Actual Remaining 15th St NE/NW Preservation $2.2M $0.1M $2.1M S 277th Street Preservation $1.3M $0.1M $1.3M 2018 Citywide Pavement and Patching Overlay $1.7M $0.0M $1.6M All Other Projects (4 Others Budgeted)$1.0M $.1M $0.9M Total $6.1M $0.3M $5.9M *Components may not sum to total due to rounding. Capital Projects Status* Fund 105 - Arterial Street Preservation 29 Page 67 of 109 Quarterly Financial Report Through Q2-2018 30 Fund 124 – Mitigation Fees The Mitigation Fees Fund is a special revenue fund funded from revenues from fees for new development that are assessed at the time applications are received for development activity. These funds are used to mitigate costs associated with City growth. Through Q2-2018, revenues were below budget expectations, at 23.7% of the annual budgeted amount. This variance is largely due to a decrease in single-family housing development, which is the source of parks impact fees and a significant source of transportation impact fees. Expenditures were also below budget due to the timing of capital projects funded by these revenues. Fund 124 - Mitigation Fees Summary of Sources and Uses Report Period Through:Ending Ending June 2018 Fund Balance Fund Balance Transportation Impact Fees 202,285$ 512,053$ 4,906,702$ 800,000$ 1,498,517$ 4,517,955$ Transportation Migitation Fees - 101,943 132,362 - 188,800 45,505 Fire Impact Fees 112,507 - 198,880 100,000 50,000 136,373 Fire Mitigation Fees - - 81 - - 81 Parks Impact Fees 49,000 169,455 5,209,681 600,000 967,000 4,963,136 Parks Mitigation Fees - - 335,302 - - 335,302 School Impact Admin Fees 774 - 56,889 12,000 - 68,115 Wetland Mitigation Fees - - 69,661 - 31,600 38,061 Interest and Investment Income 89,995 - 89,995 8,200 - 8,200 Fees in Lieu of Improvements - - 123,313 - - 123,313 Operating Transfers - - - 400,000 100,000 300,000 Total 454,562$ 783,451$ 11,122,866$ 1,920,200$ 2,835,917$ 10,536,041$ Beginning Fund Balance, January 2018 11,451,755$ Net Change in Fund Balance, June 2018 (328,889) Ending Fund Balance, June 2018 11,122,866$ 2018 Budgeted Ending Fund Balance 10,536,041$ YTD ACTUALS BUDGET Revenues Expenditures Revenues Expenditures 30 Page 68 of 109 Quarterly Financial Report Through Q2-2018 31 Enterprise Funds Detailed income and expense statements for Enterprise and Internal Service funds can be found in an attachment at the end of this report. The attachment provides 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. Through June 30, 2018 the Water Utility had operating income before depreciation of $2.1 million as compared with $2.0 million during the same period last year. Revenues are on track with budget expectations, and are expected to increase during the second half of the year due to increased water consumption during the summer months. Water sales by volume through Q2-2018 totaled 1.31 million hundred cubic feet (ccf), compared to 1.34 million ccf through Q2-2017, representing a 1.8% decrease. 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 take-or-pay agreement expired and the Interlocal Agreement was amended; whereas, through Q2-2017, Water District #111 consumed 39,300 ccf of water. 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CCFThousandsWater Revenues vs Water Sold 2018 vs 2017 2017 Water Sales ($) 2018 Water Sales ($) 2017 Water Sold (ccf) 2018 Water Sold (ccf) 31 Page 69 of 109 Quarterly Financial Report Through Q2-2018 32 The Sewer Utility finished Q2-2018 with operating income before depreciation of $1.0 million as compared to operating income of $1.2 million through Q2-2017. This decrease is due primarily to lower revenue from charges for service. The Stormwater Utility ended Q2-2018 with operating income before depreciation of $1.3 million compared with $1.5 million through Q2-2017. This decrease is due primarily to increases in operating expenditures. Through Q2-2018, the Solid Waste Utility Fund had $7.7 million in operating revenues, compared to $7.3 million in operating expenditures, resulting in an increase in W orking Capital of $376,000. The City of Auburn’s Solid Waste services are outsourced to Waste Management and to Republic Services, who manages the contract for the annexed areas. As of June 2018, Waste Management serviced 15,479 customers (79% of customers) and Republic Services serviced 4,069 customers (21% of customers). The current mix of customer account types is: • 90% Residential • 8% Commercial • 2% Multifamily The “diversion rate” is a measure of how much generated waste is not sent to the landfill; i.e., waste that is either recycled or collected yard waste. Through Q2-2018, the total diversion rate was 30%, which represents a total of 10,000 tons of waste that was diverted from landfills. Q2-2018 Tons Collected and Diversion Rates: Garbage - 5,500 tons (50.0%)Yard Waste - 3,300 tons (30.6%) Recycling - 2,100 tons (19.4%) Q2-2018 Residential Waste Stream Garbage Yard Waste Recycling Garbage - 3,500 tons (76.6%) Yard Waste -300 tons (6.1%) Recycling - 800 tons (17.3%) Q2-2018 Multifamily Waste Stream Garbage Yard Waste Recycling Total: 4,600 tons collected Diversion Rate: 23% Total: 10,900 tons collected Diversion Rate: 50% 32 Page 70 of 109 Quarterly Financial Report Through Q2-2018 33 Of the total tonnage collected through Q2-2018, 32% was collected from residential customers, 14% from multifamily customers, and 54% from commercial customers, as shown in the following graph. Garbage - 14,800 tons (81.0%) Yard Waste -100 tons (0.6%) Recycling - 3,400 tons (18.4%) Q2-2018 Commercial Waste Stream Garbage Yard Waste Recycling Total: 18,300 tons collected Diversion Rate: 19% Garbage - 23,800 tons (70.4%) Yard Waste - 3,700 tons (11.0%) Recycling - 6,300 tons (18.6%) Q2-2018 Total Waste Stream Garbage Yard Waste Recycling Total: 33,800 tons collected Diversion Rate: 30% 5,808 4,715 5,541 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18Tonnage2018 YTD Solid Waste Tonnage by Customer Type Residential Multifamily Commercial 5,850 5,966 5,974 33 Page 71 of 109 Quarterly Financial Report Through Q2-2018 34 Through Q2-2018 the Cemetery Fund experienced operating income of $111,000, as compared with an operating income of $100,000 through Q2-2017. This variance is mainly due to increased revenue from lot sales. 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 2018. As a result, the expenditure balance will gradually diminish each month throughout the year. No significant variances are reported in the Workers’ Compensation, Facilities, Innovation & Technology, or Equipment Rental Funds. $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsCEMETERY 2018 YTD Budgeted Revenue 2018 YTD Actual Revenue 2017 YTD Actual Revenue 2018 YTD Actual Expenses Cumulative Revenues & Expenditures 2018 Budget vs. Actual 34 Page 72 of 109 Quarterly Financial Report Through Q2-2018 35 P-Card Statistics The City has been actively promoting the use of P-Cards in lieu of purchase orders to minimize effort and maximize incentive payments from the vendor and the State. In Q2-2018, 4,266 P-Card transactions were processed as compared with 1,144 purchase order transactions. Total incentive payments received from US Bank in Q2-2018 totaled $24,863. These are estimated payments since the quarterly rebate checks are not actually received until the next quarter. Additionally, there is an annual incentive payment from the State that is received in Q2 of each year. The annual State incentive payment for 2017 was $24,693 and was received in April of 2018. 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. 1,001 3,722 1,144 4,266 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Purchase Order Transactions PCard Transactions PCard Incentives Received (see text) Purchase Order and PCard Transactions Q2 2017 and 2018 2017 2018 $50,417 $49,556 35 Page 73 of 109 Investment Purchase Purchase Maturity Yield to Type Date Price Date Maturity State Investment Pool Various 119,099,522$ Various 1.89% KeyBank Money Market Various 4,953,893 Various 0.02% OpusBank Public Interest Acct Various 10,104,958 Various 1.97% FNMA 3/11/2016 998,844 2/22/2019 1.20% FHLB 2/28/2018 2,000,000 2/28/2023 2.65% FFCB 5/21/2018 2,000,000 10/21/2019 2.48% FAMCA 6/27/2018 2,000,000 1/0/1900 2.50% Total Cash & Investments 141,157,217$ 1.850% Investment Mix % of Total State Investment Pool 84.4%Current 6-month treasury rate 2.11% KeyBank Money Market 3.5%Current State Pool rate 1.89% OpusBank Public Interest Acct 7.2%KeyBank Money Market 0.02% FNMA 0.7%OpusBank Public Interest Acct 1.97% FHLB 1.4%Blended Auburn rate 1.85% FFCB 1.4% FAMCA 1.4% 100.0% City of Auburn Investment Portfolio Summary June 30, 2018 Summary 36 Page 74 of 109 SALES TAX SUMMARY JUNE 2018 SALES TAX DISTRIBUTIONS (FOR APRIL 2018 RETAIL ACTIVITY) 2017 Annual Total 2017 YTD 2018 YTD YTD 2017 Annual Total 2017 YTD 2018 YTD YTD NAICS CONSTRUCTION (Nov '16-Oct '17)(Nov '16-Apr '17)(Nov '17-Apr '18)% Diff NAICS AUTOMOTIVE (Nov '16-Oct '17)(Nov '16-Apr '17)(Nov '17-Apr '18)% Diff 236 Construction of Buildings 1,503,231 673,927 655,180 -2.8%441 Motor Vehicle and Parts Dealer 3,703,385 b 1,771,383 1,887,904 6.6% 237 Heavy and Civil Construction 209,928 87,476 68,876 -21.3%447 Gasoline Stations 268,146 128,562 132,598 3.1% 238 Specialty Trade Contractors 918,947 435,490 415,260 -4.6%TOTAL AUTOMOTIVE 3,971,531$ 1,899,945$ 2,020,503$ 6.3% TOTAL CONSTRUCTION 2,632,107$ 1,196,893$ 1,139,316$ -4.8%Overall Change from Previous Year 120,558$ Overall Change from Previous Year (57,577)$ 2017 Annual Total 2017 YTD 2018 YTD YTD 2017 Annual Total 2017 YTD 2018 YTD YTD NAICS RETAIL TRADE (Nov '16-Oct '17)(Nov '16-Apr '17)(Nov '17-Apr '18)% Diff NAICS MANUFACTURING (Nov '16-Oct '17)(Nov '16-Apr '17)(Nov '17-Apr '18)% Diff 442 Furniture and Home Furnishings 197,226 100,407 104,300 3.9% 311 Food Manufacturing 4,642 2,777 3,217 15.8%443 Electronics and Appliances 211,036 104,146 112,421 7.9% 312 Beverage and Tobacco Products 7,842 3,557 6,214 74.7%444 Building Material and Garden 580,347 259,705 252,997 -2.6% 313 Textile Mills 264 93 297 221.5%445 Food and Beverage Stores 368,971 181,069 183,687 1.4% 314 Textile Product Mills 1,501 658 760 15.4%446 Health and Personal Care Store 368,699 184,781 201,383 9.0% 315 Apparel Manufacturing 227 81 145 79.9%448 Clothing and Accessories 1,118,980 551,953 a 588,758 6.7% 316 Leather and Allied Products 46 25 24 -4.8%451 Sporting Goods, Hobby, Books 199,717 103,093 109,173 5.9% 321 Wood Product Manufacturing 16,528 7,934 6,628 -16.5%452 General Merchandise Stores 992,858 521,330 478,419 -8.2% 322 Paper Manufacturing 15,254 8,455 4,093 -51.6%453 Miscellaneous Store Retailers 463,719 237,153 320,709 35.2% 323 Printing and Related Support 54,391 26,574 24,501 -7.8%454 Nonstore Retailers 370,027 183,077 149,165 -18.5% 324 Petroleum and Coal Products 1,040 339 5,511 1526.1%TOTAL RETAIL TRADE 4,871,580$ 2,426,714$ 2,501,011$ 3.1% 325 Chemical Manufacturing 15,982 8,548 5,868 -31.4%Overall Change from Previous Year 74,297$ 326 Plastics and Rubber Products 8,856 3,884 4,791 23.3% 327 Nonmetallic Mineral Products 17,749 7,728 7,698 -0.4% 331 Primary Metal Manufacturing 818 496 683 37.7%2017 Annual Total 2017 YTD 2018 YTD YTD 332 Fabricated Metal Product Manuf 28,618 17,694 11,740 -33.7%NAICS SERVICES (Nov '16-Oct '17)(Nov '16-Apr '17)(Nov '17-Apr '18)% Diff 333 Machinery Manufacturing 18,216 7,961 13,530 69.9%51*Information 662,460 331,192 332,048 0.3% 334 Computer and Electronic Product 32,957 10,763 3,481 -67.7%52*Finance and Insurance 122,200 58,155 71,874 23.6% 335 Electric Equipment, Appliances 1,103 449 346 -22.9%53*Real Estate, Rental, Leasing 367,828 173,046 184,859 6.8% 336 Transportation Equipment Man 385,842 242,605 214,293 -11.7%541 Professional, Scientific, Tech 238,617 121,951 120,935 -0.8% 337 Furniture and Related Products 34,157 10,555 10,490 -0.6%551 Company Management 13 12 5 -60.2% 339 Miscellaneous Manufacturing 31,567 13,312 15,698 17.9%56*Admin. Supp., Remed Svcs 276,380 136,466 192,566 41.1% TOTAL MANUFACTURING 677,596$ 374,489$ 340,007$ -9.2%611 Educational Services 55,506 25,448 22,465 -11.7% Overall Change from Previous Year (34,482)$ 62*Health Care Social Assistance 74,678 40,364 45,791 13.4% 71*Arts and Entertainment 109,577 41,752 49,109 17.6% 72*Accommodation and Food Svcs 1,276,310 602,715 687,679 14.1% 2017 Annual Total 2017 YTD 2018 YTD YTD 81*Other Services 546,059 261,725 271,126 3.6% NAICS TRANSPORTATION AND WAREHOUSING (Nov '16-Oct '17)(Nov '16-Apr '17)(Nov '17-Apr '18)% Diff 92*Public Administration 182,112 73,523 63,924 -13.1% 481 Air Transportation 2 2 0 -100.0%TOTAL SERVICES 3,911,740$ 1,866,349$ 2,042,381$ 9.4% 482 Rail Transportation 20,972 18,157 13,351 -26.5%Overall Change from Previous Year 176,032$ 484 Truck Transportation 4,014 1,884 2,780 47.6% 485 Transit and Ground Passengers -3,390 -3,390 34 -101.0% 488 Transportation Support 51,246 23,404 27,619 18.0%2017 Annual Total 2017 YTD 2018 YTD YTD 491 Postal Service 274 149 659 343.2%NAICS MISCELLANEOUS (Nov '16-Oct '17)(Nov '16-Apr '17)(Nov '17-Apr '18)% Diff 492 Couriers and Messengers 1,859 524 1,074 105.1%000 Unknown 0 0 0 N/A 493 Warehousing and Storage 13,526 6,516 7,474 14.7%111-115 Agriculture, Forestry, Fishing 6,486 2,953 1,737 -41.2% TOTAL TRANSPORTATION 88,502$ 47,245$ 52,991$ 12.2%211-221 Mining & Utilities 26,023 10,901 9,996 -8.3% Overall Change from Previous Year 5,746$ 999 Unclassifiable Establishments 32,865 25,932 63,266 144.0% TOTAL SERVICES 65,374$ 39,785$ 74,998$ 88.5% Overall Change from Previous Year 35,213$ 2017 Annual Total 2017 YTD 2018 YTD YTD NAICS WHOLESALE TRADE (Nov '16-Oct '17)(Nov '16-Apr '17)(Nov '17-Apr '18)% Diff 423 Wholesale Trade, Durable Goods 1,080,558 509,344 603,177 18.4%GRAND TOTAL 17,581,514$ 8,493,080$ 8,916,034$ 424 Wholesale Trade, Nondurable 278,097 129,173 139,479 8.0%Overall Change from Previous Year 422,954$ 5.0% 425 Wholesale Electronic Markets 4,428 3,143 2,172 -30.9% TOTAL WHOLESALE 1,363,083$ 641,660$ 744,827$ 16.1%Total June 2018 Sales Tax Distributions 1,362,018$ Overall Change from Previous Year 103,168$ Dollar Increase from June 2017 38,328$ Percent Increase from June 2017 Includes Adjustments in excess of +/- $10,000.Comparisons: a. WA State Dept of Revenue audit adjustment to sales tax returns for period of April 2017 (adjustment: - $29,746).June 2017 8,493,080 7,169,390 1,323,690$ b. WA State Dept of Revenue audit adjustment to sales tax returns for period of October 2017 (adjustment: $36,668).June 2016 8,339,659 6,963,435 1,376,224$ 06/22/18 Prepared by Auburn Finance Department 2.9% 37 Page 75 of 109 Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance OPERATING FUND:460 460 461 461 462 462 OPERATING REVENUES Charges For Service 15,203,431 6,288,198 (8,915,233) 8,142,100 4,195,438 (3,946,662) 18,189,923 8,627,017 (9,562,906) 9,242,676 4,896,512 (4,346,164) Grants - - - - - - Interest Earnings 10,000 62,889 52,889 20,000 35,035 15,035 1,000 9,689 8,689 15,000 31,943 16,943 Rents, Leases, Concessions, & Other 219,024 127,034 (91,990) 75,570 35,434 (40,136) - - - 63,226 46,212 (17,014) TOTAL OPERATING REVENUES 15,432,455 6,478,121 (8,954,334) 8,237,670 4,265,907 (3,971,763) 18,190,923 8,636,706 (9,554,217) 9,320,902 4,974,667 (4,346,235) OPERATING EXPENSES Salaries & Wages 2,799,131 1,284,391 1,514,740 1,808,531 898,243 910,288 - - - 2,716,743 1,326,041 1,390,702 Benefits 1,416,014 628,023 787,991 906,551 438,557 467,994 - - - 1,396,377 651,255 745,122 Supplies 334,244 131,349 202,895 136,550 67,066 69,484 - - - 94,550 43,844 50,706 Other Service Charges 5,245,350 1,260,106 3,985,244 2,990,471 1,177,923 1,812,548 - - - 1,847,779 734,809 1,112,970 Intergovernmental Services (Less Transfers Out)9,500 8,387 1,113 83,000 64,507 18,493 Waste Management Payments Sewer Metro Services 18,250,200 8,724,969 9,525,231 (*) Debt Service Interest 1,313,575 395,512 918,063 264,928 138,410 126,518 - - - 350,697 175,348 175,349 Interfund Loan Repayment - - - Net Change Restricted Assets Interfund Operating Rentals & Supplies 1,422,040 711,065 710,975 1,034,321 517,158 517,163 - - - 1,444,254 722,681 721,573 TOTAL OPERATING EXPENSES 12,530,354 4,410,446 8,119,908 7,150,852 3,245,745 3,905,107 18,250,200 8,724,969 9,525,231 7,933,400 3,718,485 4,214,915 OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION 2,902,101 2,067,674 (834,427) 1,086,818 1,020,163 (66,655) (59,277) (88,263) (28,986) 1,387,502 1,256,182 (131,320) NON-OPERATING REVENUES Operating Transfers-in - - - Intergovernmental Loan 1,196,600 915 1,195,685 Other Non-Operating Revenues 22,500 NON-OPERATING EXPENSES Transfer to Capital Subfund 2,446,600 915 2,445,685 - - - 1,200,000 - 1,200,000 Other Operating Transfers-out 279,291 44,659 234,632 253,020 29,084 223,936 369,192 139,726 229,466 (*) Debt Service Principal 1,760,291 624,107 1,136,184 550,947 288,262 262,685 425,578 - 425,578 Net Change in Restricted Net Assets - 379,443 379,443 - 116,898 116,898 - 184,916 184,916 Interfund Loan Repayment BEGINNING WORKING CAPITAL - January 1, 2018 5,574,972 5,574,972 0 3,609,377 3,609,377 (0) 3,033,467 3,033,467 0 2,910,117 2,910,117 0 ENDING WORKING CAPITAL - June 30, 2018 5,187,491 6,594,438 1,406,947 3,892,228 4,217,796 325,568 2,974,190 2,945,204 (28,986) 2,302,849 3,841,657 1,538,808 NET CHANGE IN WORKING CAPITAL (see Note)(387,481) 1,019,466 1,406,947 282,851 608,419 325,568 (59,277) (88,263) (28,986) (607,268) 931,540 1,538,808 CAPITAL FUND: CAPITAL REVENUES Interest Revenue - 8,520 8,520 - 99,522 99,522 - 105,927 105,927 Grants 152,600 22,332 (130,268) 210,000 - (210,000) Contributions - - - - - - - Other Non-Operating Revenue - - - - - - - - - Gain (Loss) On Sale Of Fixed Assets - - - - - - - - - Increase In Contributions - System Development 1,250,000 205,522 (1,044,478) 600,000 187,212 (412,788) 600,000 292,551 (307,449) Interfund Revenues - - - - - - - - - Increase In Contributions - FAA - - - - - - - - - Proceeds of Debt Activity 2,500,000 - (2,500,000) - - - - - - Transfers In from Operating Sub-Fund 2,446,600 915 (2,445,685) - - - 1,200,000 - (1,200,000) Transfer In from Other Funds 200,000 - (200,000) - - - - - Other Sources - - - - (13,751) (13,751) - - - TOTAL CAPITAL REVENUES 6,549,200 237,289 (6,311,911) 600,000 272,983 (327,017) 2,010,000 398,479 (1,611,521) CAPITAL EXPENSES Other Non-Operating Expense - - - - - - - - - Increase In Fixed Assets - Salaries 307,857 75,932 231,925 87,857 38,349 49,508 95,714 64,878 30,836 Increase In Fixed Assets - Benefits 123,143 34,898 88,245 35,143 15,866 19,277 38,286 29,003 9,283 Increase In Fixed Assets - Services - - - - - - - - - Increase In Fixed Assets - Site Improvements - 36,552 (36,552) - - - - - Increase In Fixed Assets - Equipment - - - - 18,854 (18,854) - - - Increase In Fixed Assets - Construction 6,690,786 1,294,966 5,395,820 2,212,300 52,115 2,160,185 3,192,300 64,916 3,127,384 Operating Transfers Out 50,000 50,000 - 150,000 50,000 100,000 150,000 50,000 100,000 TOTAL CAPITAL EXPENSES 7,171,786 1,492,348 5,679,438 2,485,300 175,183 2,310,117 3,476,300 208,797 3,267,503 BEGINNING WORKING CAPITAL - January 1, 2018 1,485,010 1,485,010 (0) 12,467,191 12,467,191 0 13,194,888 13,194,888 (0) 862,424 229,951 (632,473) 10,581,891 12,564,992 1,983,101 11,728,588 13,384,570 1,655,982 NET CHANGE IN WORKING CAPITAL (see Note)(622,586) (1,255,058) (632,472) (1,885,300) 97,800 1,983,100 (1,466,300) 189,682 1,655,982 Total Change in Working Capital (1,010,067) (235,592) 774,475 (1,602,449) 706,219 2,308,668 (59,277) (88,263) (28,986) (2,073,568) 1,121,222 3,194,790 (*) Depreciation 3,250,000 1,711,181 2,430,000 1,118,572 - - 2,210,000 1,041,898 OPERATING & CAPITAL FUNDS WATER ENTERPRISE FUNDS SEWER SEWER METRO STORMCash Basis through June 2018 (*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures; payments will be made as scheduled in December 2018. Working Capital = Current Assets minus Current Liabilities ENDING WORKING CAPITAL - June 30, 2018 38 Page 76 of 109 OPERATING FUND: OPERATING REVENUES Charges For Service Grants Interest Earnings Rents, Leases, Concessions, & Other TOTAL OPERATING REVENUES OPERATING EXPENSES Salaries & Wages Benefits Supplies Other Service Charges Intergovernmental Services (Less Transfers Out) Waste Management Payments Sewer Metro Services (*) Debt Service Interest Interfund Loan Repayment Net Change Restricted Assets Interfund Operating Rentals & Supplies TOTAL OPERATING EXPENSES OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION NON-OPERATING REVENUES Operating Transfers-in Intergovernmental Loan Other Non-Operating Revenues NON-OPERATING EXPENSES Transfer to Capital Subfund Other Operating Transfers-out (*) Debt Service Principal Net Change in Restricted Net Assets Interfund Loan Repayment BEGINNING WORKING CAPITAL - January 1, 2018 ENDING WORKING CAPITAL - June 30, 2018 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 Operating Transfers Out TOTAL CAPITAL EXPENSES BEGINNING WORKING CAPITAL - January 1, 2018 NET CHANGE IN WORKING CAPITAL (see Note) Total Change in Working Capital (*) Depreciation OPERATING & CAPITAL FUNDS Cash Basis through June 2018 Working Capital = Current Assets minus Current Liabilities ENDING WORKING CAPITAL - June 30, 2018 Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance 464 464 465 465 466 466 - 14,955,350 7,642,423 (7,312,927) 843,300 460,841 (382,459) 933,000 707,468 (225,532) - - - 88,600 - (88,600) - - - - - 9,000 39,306 30,306 2,500 6,318 3,818 800 5,237 4,437 1,500 9,213 7,713 - 882 882 3,000 2,169 (831) - (50) (50) 15,052,950 7,682,611 (7,370,339) 848,800 469,328 (379,472) 933,800 712,655 (221,145) 1,500 9,213 7,713 339,207 170,128 169,079 49,200 - 49,200 490,917 248,167 242,750 - - - 159,496 78,257 81,239 33,700 - 33,700 277,863 131,879 145,984 237,000 35,805 201,195 33,400 1,775 31,625 2,500 2,359 141 221,700 135,866 85,834 - - - 1,655,795 718,381 937,414 588,550 316,545 272,005 157,980 60,775 97,205 4,230 635,626 (631,396) 367,050 92,380 274,670 - - - - - - - - - 12,301,000 6,188,911 6,112,089 - - - 16,425 3,668 12,757 - - - - - - - - - - - 114,279 57,138 57,141 1,500 750 750 48,898 24,450 24,448 - - - 14,970,227 7,306,970 7,663,257 691,875 323,323 368,552 1,197,358 601,137 596,221 241,230 671,432 (430,202) 82,723 375,641 292,918 156,925 146,005 (10,920) (263,558) 111,518 375,076 (239,730) (662,218) (422,488) 250,000 - (250,000) - - - - - - 5,000 - 5,000 1,033 290 743 175,000 - 175,000 - - - - (7,801) (7,801) - - - 40,100 20,155 19,945 5,083,854 5,083,854 0 422,608 422,608 (0) 514,788 514,788 (0) 2,015,500 2,015,500 0 5,166,577 5,459,495 292,918 359,433 556,259 196,826 500,197 626,016 125,819 1,775,770 1,353,282 (422,488) 82,723 375,641 292,918 (63,175) 133,652 196,827 (14,591) 111,228 125,819 (239,730) (662,218) (422,488) - 1,969 1,969 - 2,070 2,070 44,467 - (44,467) - - - - - - - - - - - - - - - - - - - - - - - - - - - 786,000 11,751 (774,249) - - - - - - - - - - - - - - - - - - 75,000 - (75,000) - - - - - - 830,467 13,720 (816,747) 75,000 2,070 (72,930) - - - - - - 106,429 - 106,429 - - - 42,571 - 42,571 - - - - - - - 33 (33) - - - - - - 799,034 49,300 749,734 75,000 - 75,000 - - - - - - 948,034 49,300 898,734 75,000 33 74,967 260,972 260,972 0 259,037 259,037 0 143,405 225,393 81,988 259,037 261,075 2,038 (117,567) (35,579) 81,988 - 2,037 2,037 82,723 375,641 (180,742) 98,072 278,814 (14,591) 113,265 127,856 (239,730) (662,218) (422,488) 19,500 9,410 481,000 225,125 51,000 17,123 - - INSURANCE (*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures; payments will be made as scheduled in December 2018. ENTERPRISE FUNDS SOLID WASTE AIRPORT CEMETERY INTERNAL SERVICE FUNDS 39 Page 77 of 109 OPERATING FUND: OPERATING REVENUES Charges For Service Grants Interest Earnings Rents, Leases, Concessions, & Other TOTAL OPERATING REVENUES OPERATING EXPENSES Salaries & Wages Benefits Supplies Other Service Charges Intergovernmental Services (Less Transfers Out) Waste Management Payments Sewer Metro Services (*) Debt Service Interest Interfund Loan Repayment Net Change Restricted Assets Interfund Operating Rentals & Supplies TOTAL OPERATING EXPENSES OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION NON-OPERATING REVENUES Operating Transfers-in Intergovernmental Loan Other Non-Operating Revenues NON-OPERATING EXPENSES Transfer to Capital Subfund Other Operating Transfers-out (*) Debt Service Principal Net Change in Restricted Net Assets Interfund Loan Repayment BEGINNING WORKING CAPITAL - January 1, 2018 ENDING WORKING CAPITAL - June 30, 2018 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 Operating Transfers Out TOTAL CAPITAL EXPENSES BEGINNING WORKING CAPITAL - January 1, 2018 NET CHANGE IN WORKING CAPITAL (see Note) Total Change in Working Capital (*) Depreciation OPERATING & CAPITAL FUNDS Cash Basis through June 2018 Working Capital = Current Assets minus Current Liabilities ENDING WORKING CAPITAL - June 30, 2018 Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance - - 568 568 560 560 1,008,100 510,464 (497,636) 3,463,200 1,833,088 (1,630,112) 6,212,031 3,104,284 (3,107,747) 2,260,325 1,135,444 (1,124,881) - 49,000 - (49,000) - - 2,600 13,869 11,269 8,800 17,100 8,300 5,500 15,584 10,084 - 26,531 26,531 93,000 2,280 (90,720) - - - - 1,106 1,106 - 132,596 132,596 1,103,700 526,614 (577,086) 3,521,000 1,850,188 (1,670,812) 6,217,531 3,120,975 (3,096,556) 2,260,325 1,294,571 (965,754) 80,132 40,676 39,456 678,651 314,514 364,137 1,909,554 882,947 1,026,607 628,983 301,244 327,739 367,336 87,498 279,838 383,710 167,891 215,819 887,603 407,254 480,349 331,116 154,371 176,745 - - - 140,220 60,264 79,956 434,650 94,164 340,486 1,081,000 372,153 708,847 415,215 162,930 252,285 2,152,962 873,550 1,279,412 3,005,130 1,631,922 1,373,208 435,180 225,053 210,127 - - - - - - - - - - - - - - - - - - - - - 2,618 1,523 1,095 - - - - - - - 143,811 71,904 71,907 190,795 95,400 95,395 220,212 110,226 109,986 862,683 291,104 571,579 3,499,354 1,488,123 2,011,231 6,427,732 3,111,687 3,316,045 2,699,109 1,164,569 1,534,540 241,017 235,510 (5,507) 21,646 362,064 340,418 (210,201) 9,288 219,489 (438,784) 130,002 568,786 255,000 161,266 (93,734) 972,496 79,614 (892,882) 150,000 150,000 - 846,939 276,930 570,009 60,500 500 60,000 - - - - - - - 300 300 - - - - (146,398) (146,398) 1,625,120 1,625,120 (0) 1,741,924 1,741,924 0 1,804,816 1,804,816 (0) 3,110,811 3,110,811 0 1,866,137 1,860,629 (5,508) 1,171,631 1,988,024 816,393 2,506,611 1,893,217 (613,394) 2,822,027 3,537,211 715,184 241,017 235,510 (5,507) (570,293) 246,100 816,393 701,795 88,402 (613,393) (288,784) 426,400 715,184 - 13,581 13,581 - 29,432 29,432 - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,703,631 851,814 (851,817) - - - - - - - - - - - - - - - - - - 232,300 - (232,300) 930,858 29,058 (901,800) - - - - - - 232,300 13,581 (218,719) 2,634,489 910,304 (1,724,185) - - - - - - - - - - - - - - - - - - - - - - - - - - 1,061,100 123,847 937,253 1,615,951 792,766 823,185 98,600 78,240 20,360 800,100 68,664 731,436 - - - - - - 1,159,700 202,087 957,613 2,416,051 861,430 1,554,621 1,837,285 1,837,285 0 3,453,808 3,453,808 (0) 909,885 1,648,779 738,894 3,672,246 3,502,682 (169,564) (927,400) (188,506) 738,894 218,438 48,874 (169,564) 241,017 235,510 (5,507) (570,293) 246,100 816,393 (225,605) (100,104) 125,501 (70,346) 475,274 545,620 - - - - 726,000 238,175 987,000 572,882 INTERNAL SERVICE FUNDS WORKER'S COMPENSATION FACILITIES INNOVATION & TECHNOLOGY EQUIPMENT RENTAL 40 Page 78 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Ec onomic Development Update (Hinman) (15 Minutes) Date: October 3, 2018 Department: Adminis tration Attachments: BIA Pres entation Auburn Touris m Presentation Budget Impact: Current Budget: $0 Proposed Revis ion: $0 Revis ed Budget: $0 Adminis trative Rec ommendation: Background Summary: Reviewed by Counc il Committees : Counc ilmember:Staff: Meeting Date:October 8, 2018 Item Number: Page 79 of 109 Business Improvement Area 2018 CITY COUNCIL ANNUAL REPORT OCTOBER 8, 2018 Page 80 of 109 Background •The BIA is a special district consisting of approx. 239 businesses located within a specified geographic boundary. •Purpose: To aid in general economic development and revitalization within the boundary, and to facilitate cooperation of businesses and residential property owners for the benefit of trade, economic vitality, and livability. Page 81 of 109 Purpose of the BIA and BIA funds •Acquisition, construction or maintenance of parking facilities for the benefit of the neighborhood within the BIA boundary •Decoration of any place within the BIA boundary •Sponsorship or promotion of public events •Furnishing of music in any public place within the BIA boundary •Providing professional management, planning and promotion for the neighborhood •Providing maintenance and security for common, public spaces within the BIA •Providing transportation services for the benefit of the neighborhood within the BIAPage 82 of 109 Funding •Yearly assessments are charged at a rate of $0.15/usable foot to those businesses located within the BIA boundary (Minimum assessment of $150, maximum of $1,500) •Assessments are charged to the business at the point of City business license issuance or renewal Page 83 of 109 Committee of Rate Payers •Advisory board of not more than seven members known as the Committee of Rate Payers •The purpose of the Committee is to serve in an advisory capacity to the City Council as well as to oversee the disbursement of funds captured through the assessments in conjunction with the afore mentioned allowable activities •Giovanni DiQuattro –chair •William Cowart –vice chair •Darren Jones •Kelly Gordon •Robert Klontz •Ronnie Roberts •Alternates •Megan White •Ruth Neil-Stover Current Committee Members Page 84 of 109 BIA Accomplishments to date (2018) •Establishment and circulation of electronic BIA newsletter •Collaboration with the City for purchase of 150 banners promoting Downtown Auburn •Four separate banner slogans: Discover…… Enjoy…… Shop…… Dine Downtown Auburn Page 85 of 109 BIA Accomplishments to date (2018) •Contributed funding towards the design and overall marketing/branding initiative of Economic Development •Contributed funding, collaborated on design and coordination efforts with the Tourism Board for the development of the concierge map •Contracted with the Auburn Downtown Association for the development, promotion and management of downtown Auburn events Page 86 of 109 Auburn Downtown Association •The Auburn Downtown Association (ADA) is a 501(c)(3) non-profit with its own set of by-laws and a newly elected board •Non-dues membership organization made up of businesses and property owners primarily located within the BIA boundary •Membership option for any person, business owner, and/or property owner located outside of the BIA area to become a member •Generally serving as the contract provider of the BIA to promote, coordinate and manage events in the downtown area Page 87 of 109 ADA Events To date 2018 •Mardi Gras •Auburn Beer and Wine Fest •Operated the beer garden for Auburn Parks events Still to come in 2018 •Zombie Pub Crawl •Pumpkin Painting Fest •Main Street Trick or Treat •Ice Skating Rink •Holiday Treasure Hunt •Santa House •Giving Wreath •Santa Parade •Window & Tree Decorating Contest Looking ahead to 2019 •Car Show •Street Fair •BBQ Championship •Monthly Pub Crawl •Girls Night Out •Repeat of successful 2018 events (annualizing) Page 88 of 109 BIA Current Projects •Additional security lighting •Directional lighting attached to both City owned and PSE utility poles •Initial focus areas: •Sidewalk behind the commercial buildings along the south side of Main St between Auburn Ave & Auburn Way South •B Street Plaza •Mural Parking Lot •Alley behind old Comstock building •D Street Parking Lot •Decorative string lighting and speakers along Main Street Page 89 of 109 BIA … Looking Ahead into 2019 •Establish a wish list of proposed projects •Assess and address other areas in need of additional security lighting •Additional hanging flower baskets in the BIA •Carry forward of any incomplete 2018 projects •Continued partnership and support of other community organizations •City of Auburn, Tourism Board & The Auburn Downtown Association •$72,470 spent or appropriated in 2018 Page 90 of 109 QUESTIONS? PRESENTERS: GIOVANNI DIQUATTRO –BIA, BRITTIANY KARLSON –ADA & JOSH ARNDT –CITY OF AUBURN Page 91 of 109 AUBURN TOURISM PRESENTED BY RACHAEL MC ALISTER, TOURISM BOARD MEMBER AND LORRAINE CHACHERE, TOURISM COORDINATOR Page 92 of 109 Lodging Tax Fund - •8 hotels and motels collect lodging tax for all bookings Hotel /Motel Tax •Tasked with addressing issues related to tourism •Meets Monthly ATB •Establish a proposed budget, and interview and designate lodging tax grant recipients. •Meets twice a year LTAC Page 93 of 109 TOURISM GOALS •Positively Impact Shoulder Season (September –May) •ROI on Hotel Performance STR Report oWith a Focus on Demand; REVPAR; Revenue •Ensure Economic Vitality of Auburn Businesses Page 94 of 109 BENEFITS OF TOURISM •Injects dollars from the outside region into our local economy •Cultivates Civic Pride •Community Benefit to Auburn Residents Page 95 of 109 2018 Tourism Highlights CURRENT AND ONGOING PROJECTS Page 96 of 109 INCREASE AUBURN EXPOSURE 2018 GRASSROOTS SUMMIT HOST CITY PORT OF SEATTLE SPOTLIGHT GRANT RECIPIENT Page 97 of 109 INCREASE AUBURN EXPOSURE SNHCA TRADESHOW NW EVENTS TRADESHOW Page 98 of 109 Q4 2018 and Q1 2019 Ad Campaign •Across Multiple Channels •Along I-5 corridor from Northern CA to Vancouver, BC •Hyper focused on heads in beds •Analytics of ROI to ensure minimum spending for most impressions and engagement Page 99 of 109 TOURISM RESOURCES TOURISM LOGO REFRESH TOURISM MAP Page 100 of 109 2018 LODGING TAX GRANT RECIPIENTS Page 101 of 109 TOURISM RESOURCES HOSPITALITY FAMS HOSPITALITY NEWSLETTERS Page 102 of 109 WHITE RIVER AMPHITHEATRE CONCERT SEASON •24 Concerts vs. 12 in 2017 •Season began earlier, May 5th •Last concert scheduled is Oct. 12th •New shuttle service from Century Link could potentially affect hotel bookings in Auburn •Stay & Play packages offered door to door shuttle service for seamless concert experience Page 103 of 109 The inaugural film fest will be at the Auburn Avenue Theater from January 18 –20, 2019 . The goals of the festival are to attract a new group to Auburn, bring exposure to Downtown Auburn, and Auburn businesses. Page 104 of 109 TOURISM OPEN HOUSE YOU ARE CORDIALLY INVITED: Wednesday, November 7, 2018 9AM –11AM at The Auburn Community and Event Center A big reveal. More in depth of Tourism goals and projects.Page 105 of 109 QUESTIONS? Page 106 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Matrix Date: October 4, 2018 Department: Council Attachments: Special Focus Areas Key Matrix Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background Summary: Rev iewed by Council Committees: Councilmember:Staff: Meeting Date:October 8, 2018 Item Number: Page 107 of 109 Revised 01-08-2018 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 Holman, Chair Councilmember DaCorsi, Chair Councilmember Brown, Chair Councilmember Wales, Vice Chair Councilmember Brown, Vice Chair Deputy Mayor Baggett, Vice Chair Councilmember Peloza, Vice Chair 2018 MEETING DATES 2018 MEETING DATES 2018 MEETING DATES 2018 MEETING DATES January 22, 2018 February 12, 2018 February 26, 2018 January 8, 2018 March 26, 2018 April 9, 2018 April 23, 2018 March 12, 2018 May 29, 2018 June 11, 2018 June 25, 2018 May 14, 2018 July 23, 2018 August 13, 2018 August 27, 2018 July 9, 2018 September 24, 2018 October 8, 2018 October 22, 2018 September 10, 2018 November 26, 2018 December 10, 2018 December 24, 2018 November 13, 2018 SPECIAL FOCUS AREAS Page 108 of 109 Updated 10-01-2018 NO.TOPIC Chair STAFF LEAD(S)STUDY SESSION REVIEW DATE(S) COUNCIL DISCUSSION SUMMARY ACTION DATE 1 Capital Projects Update and Featured Capital Project Discussion Chair DaCorsi Vice Chair Deputy Mayor Baggett Director Gaub 10/22/2018 2 Vacant Housing Discussion Chair DaCorsi Vice Chair Deputy Mayor Baggett Director Tate 10/22/2018 3 Roads Ad Hoc committee Report Chair DaCorsi Vice Chair Deputy Mayor Baggett 10/29/2018 4 Affordable Housing Stock Chair DaCorsi Vice Chair Deputy Mayor Baggett Director Tate 10/22/2018 5 Plastic Bag Ban Chair DaCorsi Vice Chair Deputy Mayor Baggett Director Tate 1/14/2019 6 Community Court Chair Brown Vice Chair Peloza Director Martinson 11/13/2018 7 Park Rules Chair Brown Vice Chair Peloza Director Faber 11/13/2018 8 Graffiti Chair Brown Vice Chair Peloza Director Tate/Chief Pierson 11/13/2018 9 Auburn Avenue Theater Update Chair Brown Vice Chair Peloza Director Faber 11/13/2018 10 One Table Presentation Chair Trout-Manuel Vice Chair Wales Director Hinman 11/26/2018 11 Blue Ribbon Committee Update Chair Trout-Manuel Vice Chair Wales Director Hinman 11/26/2018 12 Cost of Service Study - Planning and Development Fees Chair Holman Vice Chair Brown Director Coleman 10/8/2018 13 Identity Theft Chair Holman Vice Chair Brown City Attorney Gross TBD 14 Annexations (islands and peninsulas) Chair Holman Vice Chair Brown City Attorney Gross 12/10/2018 COUNCIL MATRIX Page 109 of 109