HomeMy WebLinkAboutQ3 2019 Financial Report
AGENDA BILL APPROVAL FORM
Agenda Subject: 3rd Quarter 2019 Financial Report Date: November 5, 2019
Department: Finance
Attachments: Quarterly Financial
Report
Budget Impact: $0
Administrative Recommendation: For discussion only.
Background Summary:
The quarterly financial report summarizes the general state of Citywide financial affairs and highlights
significant items or trends that the City Council should be aware of. The attachment provides the year to
date through September 2019 status report based on financial data available as of October 31, 2019 for
the period ending September 30, 2019 and sales tax information representing business activity that
occurred through July 2019.
Staff: Thomas
Meeting Date: November 25, 2019 Item Number:
Quarterly Financial Report Through Q3-2019
General Fund Summary
$11.9
$15.3
$9.8
$4.6
$0.6 $2.1
$4.9
$1.4
$34.5
$15.5
$6.9
$0.4
$12.2
$16.1
$9.9
$0.9 $2.2
$5.0
$1.6
$32.4
$12.5
$6.9
$0.1
$4.4
PropertyTaxesSalesTaxesOtherTaxesIntergovernmental(Grants, etc.)DevelopmentService FeesCulture &RecreationOther Fees& ChargesOtherRevenuesPersonnelSupplies& ServicesOtherExpendituresTransfersOutRevenues Expenditures
$0
$10
$20
$30
$40
$50
MillionsYTD
Budget
YTD
Actuals
(Favorable)
YTD
Actuals
(Unfavorable)
General Fund Revenues and Expenditures
(Through Q3 -2019) $50.6
$57.4$52.3 $51.9
Total
Revenues
Total
Expenditures
$0
$25
$50
$75
Millions$0.8
$2.0
$0.7 $0.7 $1.2
$2.7 $2.0
$3.9 $3.8
$21.8
$3.0
$9.8
$2.8
$1.9
$0.8 $1.6
$0.7 $0.7 $1.1
$2.5 $1.9
$3.0 $2.9
$20.6
$2.8
$9.6
$2.6
$1.2
Council& MayorAdministrativeServicesCommunity &Human ServicesMunicipal Court& ProbationHumanResourcesFinanceCity AttorneyCommunityDevelopmentJail - SCOREPolicePublicWorksParks, Arts& RecreationStreetsNon-Departmental$0
$5
$10
$15
$20
$25
$30
MillionsYTD
Budget
YTD
Actuals
(Favorable)
YTD
Actuals
(Unfavorable)
General Fund Expenditures by Department
(Through Q3-2019)
1
Quarterly Financial Report Through Q3-2019 2
General Fund 2018
Summary of Sources and Uses Annual YTD YTD YTD
Budget Budget Actual Actual Amount
Operating Revenues
Property Tax 7 21,825,000$ 11,935,000$ 12,228,024$ 11,633,676$ 293,024 2.5 %
Retail Sales Tax 8-9 18,435,100 13,677,100 13,825,585 11,825,112 148,485 1.1 %
Sales Tax - Pierce County Parks 105,500 78,100 82,419 76,824 4,319 5.5 %
Sales Tax - Annexation Credit - - 373,279 1,056,364 373,279 N/A %
Criminal Justice Sales Tax 2,162,000 1,589,700 1,783,637 1,664,826 193,937 12.2 %
Brokered Natural Gas Tax 137,900 109,400 172,481 126,785 63,081 57.7 %
City Utilities Tax 9-10 4,035,600 3,029,300 3,026,859 2,851,226 (2,441)(0.1)%
Admissions Tax 398,000 298,800 334,077 353,497 35,277 11.8 %
Electric Tax 9-10 3,558,100 2,759,400 2,753,414 2,890,368 (5,986)(0.2)%
Natural Gas Tax 9-10 1,008,000 901,100 818,958 912,333 (82,142)(9.1)%
Cable Franchise Fee 11-12 950,500 711,700 694,741 717,171 (16,959)(2.4)%
Cable Utility Tax 12 1,020,000 765,000 731,470 763,586 (33,530)(4.4)%
Cable Franchise Fee - Capital 65,000 48,750 48,471 46,766 (279)(0.6)%
Telephone Tax 9-10 1,177,900 894,500 735,332 966,456 (159,168)(17.8)%
Garbage Tax (external)9-10 134,400 100,800 109,116 102,313 8,316 8.3 %
Leasehold Excise Tax 50,000 37,500 197,512 189,560 160,012 426.7 %
Gambling Excise Tax 415,500 171,000 276,973 313,817 105,973 62.0 %
Taxes sub-total 55,478,500$ 37,107,150$ 38,192,348$ 36,490,680$ 1,085,198$ 2.9 %
Business License Fees 13 210,000$ 136,200$ 126,563$ 209,934$ (9,637)(7.1)%
Building Permits 14 1,070,000 912,900 627,371 738,697 (285,529)(31.3)%
Other Licenses & Permits 3 557,900 438,600 766,440 452,625 327,840 74.7 %
Intergovernmental (Grants, etc.)15 6,235,300 4,579,320 4,420,602 4,678,784 (158,718)(3.5)%
Charges for Services:16-19
General Government Services 16 2,821,110 1,934,100 1,944,889 59,408 10,789 0.6 %
Public Safety 16-17 1,048,200 786,150 847,021 775,086 60,871 7.7 %
Development Services Fees 16-18 805,000 586,300 850,551 613,617 264,251 45.1 %
Culture and Recreation 16-19 2,409,980 2,052,200 2,224,932 2,155,549 172,732 8.4 %
Fines and Penalties 19-20 859,500 668,400 642,069 734,490 (26,331)(3.9)%
Fees/Charges/Fines sub-total 16,016,990$ 12,094,170$ 12,450,437$ 10,418,190$ 356,267$ 2.9 %
Interest and Investment Earnings 21 348,700$ 261,000$ 291,861$ 295,262$ 30,861 11.8 %
Rents and Leases 21 849,300 703,800 793,273 829,454 89,473 12.7 %
Contributions and Donations 21 25,000 21,400 26,539 46,595 5,139 24.0 %
Other Miscellaneous 21 237,200 184,200 330,377 250,421 146,177 79.4 %
Transfers In 120,506 102,006 104,006 77,500 2,000 2.0 %
Insurance Recoveries - Capital & Operating 125,000 93,750 92,792 84,434 (958)(1.0)%
Other Revenues sub-total 1,705,706$ 1,366,156$ 1,638,848$ 1,583,666$ 272,692$ 20.0 %
Total Operating Revenues 73,201,196$ 50,567,476$ 52,281,634$ 48,492,536$ 1,714,158$ 3.4 %
Operating Expenditures
Council & Mayor 1,109,779$ 837,400$ 762,497$ 859,322$ 74,903 8.9 %
Administration 2,694,148 2,020,500 1,607,681 1,227,242 412,819 20.4 %
Human Resources 1,626,831 1,228,100 1,107,248 895,187 120,852 9.8 %
Municipal Court & Probation 2,879,221 740,003 655,167 578,985 84,836 11.5 %
Finance 3,533,140 2,736,100 2,538,235 1,118,092 197,865 7.2 %
City Attorney 2,795,950 2,042,200 1,877,968 1,531,784 164,232 8.0 %
Community Development 5,221,526 3,886,600 3,028,604 3,016,097 857,996 22.1 %
Community & Human Services (Comm Devel)1,069,373 700,100 660,205 714,451 39,895 5.7 %
Jail - SCORE 4 5,001,000 3,750,750 2,894,741 2,998,253 856,009 22.8 %
Police 4 29,515,179 21,809,300 20,626,144 19,816,945 1,183,156 5.4 %
Public Works 4,188,425 3,038,000 2,798,423 2,569,827 239,577 7.9 %
Parks, Arts & Recreation 12,962,401 9,844,600 9,558,340 9,598,326 286,260 2.9 %
Streets 4,041,472 2,810,500 2,561,410 2,633,146 249,090 8.9 %
Non-Departmental 2,961,510 1,907,425 1,239,164 3,339,930 668,261 35.0 %
Total Operating Expenditures 79,599,955$ 57,351,578$ 51,915,829$ 50,897,589$ 5,435,750$ 9.5 %
Page
Ref
2019 2019 YTD Budget vs. Actual
Favorable (Unfavorable)
Percentage
2
Quarterly Financial Report Through Q3-2019 3
Executive Summary
This Executive Summary provides an overview of the City’s overall financial position for the fiscal
period ending September 30, 2019, reflecting financial data available as of October 31, 2019.
General Fund:
Through September 2019, General Fund revenues totaled $50.6 million and were $1.7 million
(3.5%) higher than budget expectations and $3.8 million (8.1%) higher than revenues collected
through the same period last year. The majority of this year-over-year increase is due to two
policy changes: keeping sales taxes on construction revenue in the General Fund versus
transferring it to the Local Street Fund (YTD impact = $1.5M) and reimbursement for support
department labor by other funds (YTD impact = $1.9M).
Some notable variances to budget through September 2019 include:
Property tax collections through Q3-2019 totaled $12.2 million, which was $293,000
(2.5%) higher than budget expectations and exceeded 2018 year-to-date collections by
$594,000 (5.1%). [page 7]
General Fund retail sales tax revenues totaled $13.8 million, which was $148,000, or
1.1% favorable to budget. While General Fund sales tax collections through Q3-2019
were $2.0 million higher than what was collected through Q3-2018, the majority of this
increase is due to a policy change: between 2013 and 2018, sales tax dollars collected
from sales tax on construction benefitted the Local Street Fund and were not distributed
to the General Fund. Effective January 1, 2019, this policy changed and now all sales
tax dollars stay in the General Fund to support ongoing operations. [pages 8-9]
While the 10-year annexation sales tax credit expired in 2018, the City of Auburn
received $373,000 in Q3-2019 which was the result of a finding that the Department of
Revenue had ended the 2018 final payments two months earlier than they should have.
The revenue collected in Q3-2019 was budgeted in 2018. [page 8]
The other taxes category performed favorably to budget in Q 3-2019. Actual revenues
collected through Q3-2019 were $9.8 million, which was $72,000, or 0.7% above
budget. Leasehold excise tax revenues collected through Q3-2019 exceeded budget
by $160,000 due to an unbudgeted leasehold excise tax receipt for the Emerald Downs
property. Gambling tax revenues collected during the same period exceeded budget
by $106,000. These revenues were somewhat offset by unfavorable variances in
telephone tax and natural gas tax revenues in the amount of $159,000 and $82,000,
respectively. [pages 10-12]
Building permit revenue collected through Q3-2019 totaled $627,000 as compared to a
budget of $913,000. 407 building permits issued through Q3-2019, representing a 1.0%
increase over the number of permits issued through Q3-2018; however, the valuation
of those permits also declined by 12.3% during that same period. [page 14]
Other licenses and permit revenues collected year-to-date exceeded budget
expectations by $328,000. A portion of this variance is due to large grading permits
issued for the Huntington Woods housing development, as well as the grading permits
for two elementary schools. In addition, excavation permit revenues collected year-to-
date exceed budget expectations by $233,000. The increased revenue collected is
primarily due to the increase in the fee structure effective this year, where the City is
now closer to achieving full cost recovery on construction permits.
3
Quarterly Financial Report Through Q3-2019 4
Intergovernmental revenues collected through Q3-2019 totaled $4.4 million, which was
$159,000 lower than budget expectations due primarily to revenues collected for
streamlined sales tax revenues ending the period $272,000 unfavorable to budget. This
was somewhat offset by revenues from marijuana excise tax revenues that exceeded
budget expectations by $55,000.
Streamlined sales tax revenues are enhanced by the Marketplace Fairness Act (MFA),
which was passed in 2017 to capture the retail sales tax lost from internet and remote
sales. However, the bill also phases out and eventually eliminates the streamlined sales
tax mitigation payments to local governments. It was anticipated that 2019 would be
the last year that the City of Auburn would receive the streamlined sales tax monies, but
when the 2019 legislative session adjourned (in May 2019), they voted to continue
funding of the mitigation payments through June 2021. While the sales tax revenues
collected under MFA are receipted in as sales tax revenue, it is deducted from the
amount of revenue the City receives for streamlined sales tax revenues. The amount
that the City received for MFA monies through Q3-2019 totaled $453,000. [page 15]
Culture and recreation revenues collected through Q3-2019 totaled $2.2 million
compared to a budget of $2.1 million, exceeding budget expectations by $173,000 and
exceeding collections in the same period last year by $69,000. The primary areas of
increased revenues collected compared to last year were greens fees generated at the
Auburn Golf Course and ticket sales for performances at the Auburn Avenue Theater.
[pages 18-19]
General Fund expenditures through September 2019 totaled $51.9 million compared to a budget
of $57.4 million, representing a 9.5% favorable variance to budget. All departments operated
within their allocated year-to-date budget through Q3-2019. It is important to note that due to the
delayed timing of the payment to Valley Communications for 911 services and to SCORE for
jailing services, a total of $1.4 million in payments were booked in October versus September.
Year-to-date General Fund expenditures ended the period $1.0 million, or 2.0% higher than
expenditures through Q3-2018. This year-over-year increase was primarily due to increased
expenditures for salaries and benefits. This increase reflects increased costs associated with the
Police bargaining agreements that were approved earlier this year, the impacts of the cost of
living adjustments (COLAs), an increase in Council-approved FTEs (Full Time Equivalents), and
increased costs associated with healthcare benefits. While these factors contributed to the year-
over-year increase in expenditures, salaries and benefit expenditures ended the period $2.1
million favorable to budget due to vacancies.
In addition, the year-over-year salary and benefit costs reported in the General Fund in 2019 are
higher than salary and benefit costs in 2018 due not only to the reasons noted above but also due
to a change in the way salary and benefit costs are allocated. Prior to 2019, salary and benefit
costs for support departments (Finance, Human Resources and the Legal Department) were
directly charged to other General Fund departments as well as to other City funds. Effective
January 1, 2019, all salaries and benefit costs for the support departments mentioned above are
now charged 100% to the General Fund. In order to recoup the cost of services, the General
Fund now charges other funds for these services via an interfund charge, with an associated
revenue in the General Fund (for reference, refer to the general government services line item in
the table on page 16 of this report). While this change results in higher salary and benefit costs
within the General Fund, the change is actually cost neutral to the bottom line.
4
Quarterly Financial Report Through Q3-2019 5
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. 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.
Through Q3-2019, Arterial Street Fund revenues totaled $1.5 million as compared to collections
of $2.6 million through Q3-2018, while expenditures totaled $1.6 million as compared to
expenditures of $3.4 million through Q3-2018. These variances are due to the level of activity on
projects in the fund and timing of grant reimbursements and other funding. [pages 25–26]
Local Street Fund revenues of $1.5 million are in line with budget expectations, and compare to
collections of $2.0 million through Q3-2018. This variance is due to a change in funding sources –
last year, the Local Street Fund received revenue from sales tax on construction. Starting in
2019, the fund instead receives a set revenue amount from real estate excise tax (REET 2).
Expenditures through the second quarter were $783,000 as compared with $1.2 million through
Q3-2018. [pages 27–28]
Lastly, Arterial Street Preservation Fund revenues totaled $2.2 million through Q3-2019,
compared to collections of $2.3 million through Q3-2018. Expenditures totaled $2.4 million
versus $2.3 million through Q3-2018. These variances are due to the level of activity on projects
in the fund and timing of grant reimbursements and other funding. [pages 29–30]
YTD Budget
$ 50.6M
YTD Budget
$ 57.4M
YTD Actuals
$ 52.3M
YTD Actuals
$ 51.9M
$0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65
Revenues
Expenditures
$ Millions
General Fund
Revenues vs. Expenditures Through Q3-2019
5
Quarterly Financial Report Through Q3-2019 6
Enterprise Funds:
The City’s enterprise funds account for operations with revenues primarily provided from user
fees, charges or contracts for services.
All City utilities transitioned from bimonthly to monthly usage billing starting in January 2019.
The Water Fund ended the third quarter with operating income of $5.2 million, compared to $4.4
million during the same period last year. [page 32]
The Sewer Fund finished Q3-2019 with operating income of $2.2 million versus $1.5 million
through Q3-2018. [page 33]
The Stormwater Fund ended the third quarter with operating income of $2.3 million compared to
$2.0 million through Q2-2018. [page 33]
The Solid Waste Fund finished Q3-2019 with operating income of $299,000 compared to
$485,000 through Q3-2018, a variance caused mainly by increased payments to the City’s
primary solid waste contractor. [pages 33-34]
The Airport Fund finished Q3-2019 with operating income of $331,000 compared to $263,000
through Q3-2018, a variance largely attributable to the purchase and sale of aviation fuel. [page
35]
The Cemetery Fund had operating income of $146,000, compared to $174,000 through Q3-
2018. [page 35]
Internal Service Funds:
Internal service funds provide services to other City departments and include functions such as
Insurance, Worker’s Compensation, Facilities, Innovation & Technology, and Equipment Rental.
No significant variances were reported in these funds during the second quarter. [page 36]
6
Quarterly Financial Report Through Q3-2019 7
General Fund
Revenues
The combined total of property, sales/use, utility, gambling, and admissions taxes provides 75%
to 80% of all resources supporting general governmental activities. The following section
provides additional information on these sources.
Property Tax collections through Q3-2019 totaled $12.2 million and were $293,000, or 2.5%
favorable to budget expectations. As depicted in the graphic below, the majority of property taxes
are collected during the months of April and October, coinciding with the due dates for 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
2019 Budget
2019 YTD Actual
2018 Actual
$15.8
$17.2 $17.9
$20.8 $21.4
$12.2
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2014 2015 2016 2017 2018 2019
YTDMillionsProperty Tax Revenue
Actuals
7
Quarterly Financial Report Through Q3-2019 8
Retail sales tax collections through Q3-2019 totaled $13.8 million, which was $148,000 higher
than budget expectations. W hile sales tax revenues collected in the General Fund through Q3-
2019 were $2.0 million more than collections through Q3-2018, this is primarily due to a policy
change that became effective on January 1, 2019. Between 2013 and 2018, all sales tax dollars
collected from sales tax on construction benefitted the Local Street Fund and were therefore not
distributed to the General Fund; effective January 1, 2019, all sales tax dollars now stay in the
General Fund to support ongoing operations. In June 2019, the City issued a rebate in the
amount of $47,000 in accordance with the Sales Tax Exemption Program, which is a permanent
program that incentivizes construction of new or expanded businesses in specific zoned areas of
the City. This rebate is reflective of the differences in retail sales taxes shown in the table on
page 9 of this report.
Due to the Marketplace Fairness Act (MFA) which became effective on January 1, 2018, retail
sales taxes collected through Q3-2019 included $453,000 from retail sales taxes collected on
internet and remote sales. This is collected as retail sales tax revenue and is deducted from the
amount the City receives for streamlined sales tax revenue (see page 15 for more information).
While the 10-year annexation sales tax credit expired in 2018, the City of Auburn received
$373,000 in Q3-2019 which was the result of a finding that the Department of Revenue had
ended the 2018 final payments two months earlier than they should have. The revenue collected
in Q3-2019 was budgeted in 2018. Pierce County parks sales tax revenue and the criminal
justice sales tax revenue both ended the period favorable to budget by $4,000 and $194,000
respectively. Total sales tax revenues – including retail and other sales taxes – were $15.3
million through Q3-2019 as compared to a year-to-date budget of $16.1 million.
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsRetail Sales & Use Tax
2019 Budget
2019 YTD Actual
2018 Actual
8
Quarterly Financial Report Through Q3-2019 9
The following table breaks out the City’s retail sales taxes by major business sector.
Citywide retail sales tax revenue collected through Q3-2019 was $284,000, or 2.1%, more than
collected through Q3-2018. The business sector that realized the greatest revenue increase
compared to the same period last year was in the retail trade category, while the construction
category declined 14.6%, or $257,000, compared to collections through Q3-2018.
$13.8 $14.5 $14.6 $14.9
$15.9
$13.8
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
2014 2015 2016 2017 2018 2019
YTDMillionsRetail Sales & Use Tax
Actuals
2018 2019
Component Group Actual Actual Amount
Construction 1,763,440$ 1,506,735$ (256,705)$ (14.6)%
Manufacturing 556,018 589,753 33,735 6.1 %
Transportation & Warehousing 92,685 63,946 (28,739)(31.0)%
Wholesale Trade 1,100,407 1,133,801 33,395 3.0 %
Automotive 3,092,212 3,037,102 (55,110)(1.8)%
Retail Trade 3,756,570 4,043,320 286,750 7.6 %
Services 3,131,431 3,305,574 174,143 5.6 %
Miscellaneous 95,789 192,684 96,895 101.2 %
YTD Total 13,588,552$ 13,872,916$ 284,365$ 2.1 %
Comparison of Retail Sales Tax Collections by Group
Through September
Change from 2018
Percentage
9
Quarterly Financial Report Through Q3-2019 10
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 Q3-2019 totaled $7.4 million and were $241,000, or 3.1%, below budget
expectations.
The majority of this unfavorable variance to budget through Q3-2019 was seen in
telephone tax collections. This revenue source year-to-date has declined 17.8%
compared to collections through the same period last year and overall th e telephone
utility tax revenue has seen a steady decline since 2010.
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsUtility Tax
2019 Budget
2019 YTD Actual
2018 Actual
2018 2019 2019
Utility Tax Type YTD Actual YTD Budget YTD Actual Amount Amount
City Interfund Utility Taxes 2,851,226$ 3,029,300$ 3,026,859$ $ 175,633 6.2 % $ (2,441)(0.1)%
Electric 2,890,368 2,759,400 2,753,414 (136,954)(4.7)%(5,986)(0.2)%
Natural Gas 912,333 901,100 818,958 (93,375)(10.2)%(82,142)(9.1)%
Telephone 966,456 894,500 735,332 (231,124)(23.9)%(159,168)(17.8)%
Solid Waste (external)102,313 100,800 109,116 6,803 6.6 %8,316 8.3 %
YTD Total 7,722,696$ 7,685,100$ 7,443,679$ $ (279,017)(3.6)% $ (241,421)(3.1)%
Through September 2019
Utility Tax by Type
2019 vs. 2018 Actual 2019 vs. Budget
Percentage Percentage
10
Quarterly Financial Report Through Q3-2019 11
Cable Franchise Fees, which are collected quarterly, totaled $695,000 through Q3-2019 and
were $17,000, or 2.4%, lower than budget expectations.
$10.0 $9.7 $10.0 $10.2 $9.9
$7.4
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
2014 2015 2016 2017 2018 2019
YTDMillionsUtility Tax Revenues
Actuals
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
1st Quarter 2nd Quarter 3rd Quarter 4th QuarterThousandsCable Franchise Fee
2019 Budget
2019 YTD Actual
2018 Actual
11
Quarterly Financial Report Through Q3-2019 12
Cable Utility Tax. This tax became effective on January 1, 2017 and is also collected quarterly.
Total cable utility tax revenue collected through Q3-2019 totaled $731,000 and was unfavorable
to budget expectations by $34,000, or 4.4%.
$0.9 $0.9
$1.0 $1.0 $1.0
$0.7
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
2014 2015 2016 2017 2018 2019
YTDMillionsCable Franchise Fee
Actuals
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
1st Quarter 2nd Quarter 3rd Quarter 4th QuarterThousandsCable Utility Tax
2019 Budget
2019 YTD Actual
2018 Actual
12
Quarterly Financial Report Through Q3-2019 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 approximately
70% of the annual budgeted revenue in this category.
Business license revenues collected through September 2019 totaled $127,000 as compared to a
budget of $136,000. This shortfall relates to the timing of when business license renewal notices
are paid: a majority of businesses paid their 2019 business licenses in late 2018.
$0
$50
$100
$150
$200
$250
$300
$350
$400
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsBusiness Licenses
2019 Budget
2019 YTD Actual
2018 Actual
$171
$282
$225
$163
$353
$127
$0
$50
$100
$150
$200
$250
$300
$350
$400
2014 2015 2016 2017 2018 2019
YTDThousandsBusiness License Revenues
Actuals
13
Quarterly Financial Report Through Q3-2019 14
Building permit revenue collected through Q3-2019 totaled $627,000 compared to a budget of
$913,000. Revenues collected through Q3-2019 were 15.1% below collections through Q3-2018,
while the valuation of permits during these same periods declined by 12.3% (after adjusting for
the Auburn Apartments project, for which permits were paid in 2018). The number of building
permits issued through Q3-2019 totaled 407, which represents a 1.0% increase over the number
of permits issued through Q3-2018. Although the number of permits issued increased slightly,
the average valuation of projects thus far this year has declined compared to the same period last
year.
Major projects contributing to building permit revenues this quarter includes duplexes at Country
Meadows, Fieldhouse USA (an indoor sports facility at The Outlet Collection), and various
projects at Boeing.
$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 DecMillionsBuilding Permits
2019 Budget
2019 YTD Actual
2018 Actual
$1.5
$1.2
$2.0
$1.2
$0.9
$0.6
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
2014 2015 2016 2017 2018 2019 YTDMillionsBuilding Permits
Actuals
14
Quarterly Financial Report Through Q3-2019 15
Intergovernmental revenues include grants (direct and indirect federal, state and local),
revenue from the Muckleshoot Indian Tribe (MIT) compact, intergovernmental service revenues,
and state shared revenues. Collections through September 2019 totaled $4.4 million and were
$159,000 lower than budget expectations.
The majority of the variance to budget was seen in the streamlined sales tax revenue distribution,
which was lower than expectations by $453,000 through Q3-2019 due to the Marketplace
Fairness Act (MFA) which was implemented in January 2018 to capture the retail sales tax lost on
internet and remote sales. MFA revenues are collected as retail sales tax revenues, which then
reduces the amount the City receives in streamlined sales taxes (see also page 8).
2018 2019 2019
Revenue YTD Actual YTD Budget YTD Actual Amount Amount
Federal Grants 229,475$ 249,675$ 173,444$ $ (56,031)(24.4)% $ (76,231)(30.5)%
State Grants 137,359 122,100 148,776 11,418 8.3 %26,676 21.8 %
Interlocal Grants 47,255 12,000 38,888 (8,366)0.0 %26,888 224.1 %
Muckleshoot Casino Services 766,217 902,400 908,419 142,202 18.6 %6,019 0.7 %
State Shared Revenues:
Streamlined Sales Tax 1,304,831 1,263,750 991,574 (313,257)(24.0)%(272,176)(21.5)%
Motor Vehicle Fuel Tax 891,422 846,500 867,456 (23,965)(2.7)%20,956 2.5 %
Criminal Justice - High Crime 161,902 150,000 169,308 7,406 4.6 %19,308 12.9 %
Criminal Justice - Population 17,043 16,700 17,958 915 5.4 %1,258 7.5 %
Criminal Justice - Special Prog.61,647 61,100 64,666 3,019 4.9 %3,566 5.8 %
Marijuana Revenues 191,463 81,000 135,977 (55,485)(29.0)%54,977 67.9 %
State DUI 8,755 8,700 8,548 (207)(2.4)%(152)(1.8)%
Fire Insurance Tax 79,798 78,900 80,386 588 0.7 %1,486 1.9 %
Liquor Excise 290,903 292,320 322,324 31,421 10.8 %30,004 10.3 %
Liquor Profit 490,715 494,175 492,877 2,162 0.4 %(1,298)(0.3)%
Total State Shared:3,498,479 3,293,145 3,151,074 (347,405)(9.9)%(142,071)(4.3)%
YTD Total 4,678,784$ 4,579,320$ 4,420,602$ (258,182)$ (5.5)%(158,718)$ (3.5)%
Through September 2019
Intergovernmental Revenues (Grants, Entitlements & Services)
2019 vs. 2018 Actual 2019 vs. Budget
% Change % Change
$5.1 $5.3 $5.7 $6.1 $6.3
$4.4
$0
$1
$2
$3
$4
$5
$6
$7
$8
2014 2015 2016 2017 2018 2019
YTDMillionsIntergovernmental Revenues
(Grants, Entitlements & Services)
Actuals
15
Quarterly Financial Report Through Q3-2019 16
Charges for Services consist of general governmental service charges, public safety charges,
development service fees, and culture and recreation fees. Overall, charges for services
collected through Q3-2019 totaled $5.9 million, which was $509,000 favorable to budget. The
primary areas of increases were in both development services and culture and recreation
revenues as explained on pages 17 and 18.
A process change was implemented in 2019 that significantly affects the comparison of year-
over-year variances. Prior to 2019, salary and benefit expenditures for support departments
(Finance, Human Resources, and Legal) were allocated between the General Fund and other
City funds. Effective January 1, 2019, all salary and benefit costs for support departments are
now fully charged to their respective General Fund department. The General Fund charges these
other funds for these services via an interfund assessment, with a corresponding General Fund
revenue shown under “General Government” in the table above (hence the dramatic change from
2018 to 2019 shown in the table above). This policy change results in salary and benefit
expenditures within the General Fund to be higher than were previously reported, but the change
has a cost-neutral impact on the General Fund due to the revenue offset. Total revenues
recouped through Q3-2019 as general governmental revenues in the General Fund for the salary
and benefit interfund charges totaled $1.9 million.
2018 2019 2019
Revenue YTD Actual YTD Budget YTD Actual Amount Amount
General Government 59,408$ 1,934,100$ 1,944,889$ $ 1,885,481 3,173.8 % $ 10,789 0.6 %
Public Safety 775,086 786,150 847,021 71,935 9.3 %60,871 7.7 %
Development Services 613,617 586,300 850,551 236,933 38.6 %264,251 45.1 %
Culture & Recreation 2,155,549 2,052,200 2,224,932 69,382 3.2 %172,732 8.4 %
YTD Total 3,603,661$ 5,358,750$ 5,867,392$ 2,263,732$ 62.8 % $ 508,642 9.5 %
Through September 2019
Charges for Services by Type
2019 vs. 2018 Actual 2019 vs. Budget
Percentage Percentage
$3.9 $4.3 $4.1 $4.2
$4.7
$5.9
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
2014 2015 2016 2017 2018 2019
YTDMillionsCharges for Services
Actuals
16
Quarterly Financial Report Through Q3-2019 17
Public safety revenues consist of revenues received for extra duty security services, whereby
police officers are contracted for and reimbursement is made by the hiring agency. 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 September 2019 totaled $847,000 as compared to a budget of
$786,000. The majority of the favorability seen in this revenue source is due to extra duty
overtime reimbursements exceeding budget expectations resulting from increased requests for
police officer security services.
Development services fee collections consist primarily of plan check fees, facility extension
charges, and zoning and subdivision fees. Through Q3-2019, development service fees totaled
$851,000 and ended the period $264,000 favorable to budget expectations. Total plan check
revenues collected through Q3-2019 totaled $481,000 compared to $326,000 collected through
Q3-2018 which is a 47.3% increase in revenues. Plan check revenues collected in the third
quarter of 2019 were from numerous commercial and residential projects including the Cooper
Gate Apartment complex (a 16 building complex), Divine Court (a 7 story mixed-use building on
Main Street), and Huntington Woods which is a new single family housing development. In
addition to increased plan check revenues collected through Q3-2019, both zoning/subdivision
fees and facility extension fees were higher than anticipated partly due to an increase in the fee
structure where the rates were recalibrated effective in January 2019 to be closer to cost of the
service(s) provided.
$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
2019 Budget
2019 YTD Actual
2018 Actual
17
Quarterly Financial Report Through Q3-2019 18
The majority of culture and recreation revenues are derived from greens fees and pro shop sales
at the Auburn Golf Course, recreational classes, ticket sales at the Auburn Avenue Theater,
special events, and athletic league fees. Culture and recreation revenues collected through Q3-
2019 totaled $2.2 million, exceeding collections in the same period last year by $69,000 and
exceeding Q3-2019 budget by $173,000. The majority of the year-over-year increase in
revenues was in greens fee revenues from the Auburn Golf Course and increased ticket sales at
the Auburn Avenue Theater. Through Q3-2019, greens fee revenues increased 2.7%, or $27,000
and theater ticket sales increased 19.0%, or $24,000, compared to the same period last year.
$1.1
$1.4
$1.0
$0.9 $0.9 $0.9
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
2014 2015 2016 2017 2018 YTD 2019MillionsDevelopment Service Fees
Actuals
$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
2019 Budget
2019 YTD Actual
2018 Actual
18
Quarterly Financial Report Through Q3-2019 19
Fines & Penalties include civil penalties (such as code compliance fines), parking and traffic
infraction penalties, criminal fines (including criminal traffic, criminal non-traffic and other criminal
offenses) as well as non-court fines such as false alarm fines. Total revenues collected through
Q3-2019 totaled $642,000 as compared to a budget of $668,000.
As seen in the table below, civil penalty revenues collected through Q3-2019 were $52,000
higher than budget expectations. The favorable variance to budget in civil penalties relates to
revenues collected for code compliance penalties, which are largely unbudgeted. Code
compliance penalties are revenues collected from banks on vacant bank-owned properties that
are neglected and in non-compliance with City code.
$2.2 $2.3 $2.3 $2.4
$2.6
$2.2
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2014 2015 2016 2017 2018 2019 YTDMillionsCulture & Recreation Revenues
Actuals
2018 2019 2019
Month YTD Actual YTD Budget YTD Actual Amount Amount
Civil Penalties 94,411$ 12,100$ 64,560$ $ (29,851)(31.6)% $ 52,460 433.6 %
Civil Infraction Penalties 372,626 368,200 328,685 (43,941)(11.8)%(39,515)(10.7)%
Redflex Photo Enforcement 6,613 0 2,672 (3,942)(59.6)%2,672 N/A %
Parking Infractions 99,176 114,000 96,758 (2,418)(2.4)%(17,242)(15.1)%
Criminal Traffic Misdemeanor 38,525 44,900 27,982 (10,543)(27.4)%(16,918)(37.7)%
Criminal Non-Traffic Fines 37,362 32,400 46,259 8,896 23.8 %13,859 42.8 %
Criminal Costs 31,969 37,800 14,966 (17,003)(53.2)%(22,834)(60.4)%
Non-Court Fines & Penalties 53,807 59,000 60,187 6,380 11.9 %1,187 2.0 %
YTD Total 734,490$ 668,400$ 642,069$ $ (92,421)(12.6)% $ (26,331)(3.9)%
Fines & Penalties by Type
2019 vs. 2018 Actual 2019 vs. Budget
Percentage Percentage
Through September 2019
19
Quarterly Financial Report Through Q3-2019 20
$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
2019 Budget
2019 YTD Actual
2018 Actual
$1.2
$0.9 $0.9 $0.9 $0.9
$0.6
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
2014 2015 2016 2017 2018 2019
YTDMillionsFines & Penalties
Actuals
20
Quarterly Financial Report Through Q3-2019 21
Miscellaneous revenues consist of investment earnings, income from facility rentals, revenue
collected on golf cart rentals at the Auburn Golf Course, contributions & donations, and other
income including the quarterly purchasing card (P-card) rebate monies (see page 36 for more
information on P-cards). Revenues collected in this category through Q3-2019 totaled $1.4
million and exceeded budget expectations by $272,000, or 23.2%. The majority of this increase
was in the other miscellaneous revenue category and was due to unbudgeted one-time monies.
Interest and investments revenue collected through Q3-2019 totaled $292,000 and exceeded
budget expectations by $31,000, or 11.8%.
Rents and lease revenues collected through Q3-2019 totaled $793,000 and were $36,000 less
than revenues collected through the same period last year. Both facilities rental revenues and
golf cart rental revenues increased $13,000 and $11,000 respectively compared to collections
through Q3-2018. Conversely, deposits held through Q3-2019 for facility rentals declined
$47,000 compared to the same period last year. Lastly, due to a reduction of parking space
inventory due to construction projects in downtown Auburn, parking lot rental revenues through
Q3-2019 were $14,000 less than revenues collected through Q3-2018.
2018 2019 2019
Month YTD Actual YTD Budget YTD Actual Amount Amount
Interest & Investments 295,262$ 261,000$ 291,861$ (3,401)$ (1.2)%30,861$ 11.8 %
Rents & Leases 829,454 703,800 793,273 (36,181)(4.4)%89,473 12.7 %
Contributions & Donations 46,595 21,400 26,539 (20,056)(43.0)%5,139 24.0 %
Other Miscellaneous Revenue 250,421 184,200 330,377 79,956 31.9 %146,177 79.4 %
YTD Total 1,421,732$ 1,170,400$ 1,442,050$ 20,318$ 1.4 %271,650$ 23.2 %
Miscellaneous Revenues by Type
Through September 2019
2019 vs. 2018 2019 vs. Budget
Percentage Percentage
$1.0 $1.0
$1.2
$1.5
$1.8
$1.4
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
$2.0
2014 2015 2016 2017 2018 2019
YTDMillionsMiscellaneous Revenues
Actuals
21
Quarterly Financial Report Through Q3-2019 22
Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects
Fund and is used for governmental capital projects. REET revenue represents taxes on the sale
of both commercial properties and single-family residences. REET revenues collected through
Q3-2019 totaled $3.2 million, exceeding budget expectations by $1.3 million. Commercial sales
in Q3-2019 included the sale of several commercial buildings including warehouses, several
multi-family complexes, a hotel, a restaurant, a storage facility and several parcels of vacant land.
2018 2019 2019
Month Actual Budget Actual Amount Amount
Jan 240,414$ 210,100$ 383,547$ 143,132$ 59.5 % 173,447$ 82.6 %
Feb 200,783 210,100 206,022 5,239 2.6 % (4,078) (1.9) %
Mar 255,218 210,100 229,181 (26,037) (10.2) % 19,081 9.1 %
Apr 362,999 210,100 315,855 (47,144) (13.0) % 105,755 50.3 %
May 427,054 210,100 372,394 (54,661) (12.8) % 162,294 77.2 %
Jun 371,816 210,100 478,537 106,720 28.7 % 268,437 127.8 %
Jul 342,006 210,100 350,228 8,223 2.4 % 140,128 66.7 %
Aug 373,889 210,100 450,095 76,206 20.4 % 239,995 114.2 %
Sep 387,673 210,100 398,420 10,748 2.8 % 188,320 89.6 %
YTD Total 2,961,854$ 1,890,900$ 3,184,280$ 222,426$ 7.5 % 1,293,380$ 68.4 %
Real Estate Excise Tax Revenues
September 2019
2019 vs. 2018 2019 vs. Budget
Percentage Percentage
$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
2019 Budget
2019 YTD Actual
2018 Actual
22
Quarterly Financial Report Through Q3-2019 23
$2.5
$4.6 $4.3
$3.6 $3.8
$3.2
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
2014 2015 2016 2017 2018 2019
YTDMillionsReal Estate Excise Tax Revenues
Actuals
23
Quarterly Financial Report Through Q3-2019 24
Pet Licensing
Pet licensing services are provided by the Auburn Valley Humane Society. Through Q3-2019,
3,661 pet licenses were sold, resulting in $97,725 in revenue. Through Q3-2018, a total of 3,426
licenses were sold, resulting in $89,650 in revenue.
EXTEND EXTEND
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 Revenues & Licenses Sold
2019 vs 2018
2019 License Revenue
2019 Licenses Issued
2018 Licenses Issued
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
2019 vs 2018
2018 License Revenue
2019 License Revenue
2018 Licenses Issued
2019 Licenses Issued
24
Quarterly Financial Report Through Q3-2019 25
Street Funds
This section provides a financial overview of the City’s three street funds for the quarter ending
September 30, 2019. 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 September 30, 2019 there were 28 separate street
projects budgeted in this fund.
Through Q3-2019, revenues collected totaled $1.5 million as compared to collections of $2.7
million through Q3-2018. Total expenditures through Q3-2019 were $1.6 million as compared to
$3.4 million expended through Q3-2018. Variances in revenues and expenditures are largely due
to the timing of capital expenditures and any subsequent reimbursement via grants and/or
operating transfers. Expenditure timing is generally determined by the current phase of each
individual capital project; expenditures tend to increase as projects move from design phase into
construction. In addition, several inclement weather situations during Q1-2019 were not
conducive to street construction.
Fund 102 - Arterial Street 2018
Summary of Sources and Uses 2019 2019 YTD 2019 YTD 2018 YTD
Report Period: September 2019 Budget Budget Actual Actual Amount
Revenues
Federal Grants 2,298,881$ 1,298,027$ 492,609$ 711,936$ (805,418)$ (62.0)%
State Grants - - - 31,585 -
Motor Vehicle Fuel and Multimodal Taxes 620,000 453,444 457,355 467,618 3,911 0.9 %
Developer Contributions - - - (0) -
Miscellaneous Revenue - - - 498,885 -
Operating Transfer In 1,595,960 1,132,220 559,429 933,729 (572,790) (50.6)%
Investment Income 28,300 19,147 33,964 22,567 14,817 77.4 %
Total Revenues 4,543,141$ 2,902,837$ 1,543,357$ 2,666,321$ (1,359,480)$ (46.8)%
Expenditures
Salary and Benefits 132,000$ 103,876$ 203,838$ 307,635$ (99,961)$ (96.2)%
Capital Outlay 4,464,858 2,757,459 915,970 2,566,494 1,841,489 66.8 %
Subtotal - Capital Project Expenditures 4,596,858 2,861,336 1,119,808 2,874,128 1,741,528 60.9 %
Services and Charges 400,000 209,551 89,455 215,782 120,096 57.3 %
Interfund Payments for Services 78,100 58,575 58,575 59,148 (0) (0.0)%
Debt Service Principal and Interest 208,300 208,300 208,122 208,817 178 0.1 %
Operating Transfer Out 143,196 82,964 143,196 23,151 (60,232) (72.6)
Total Expenditures 5,426,454$ 3,420,726$ 1,619,156$ 3,381,025$ 1,801,569$ 52.7 %
Net Change in Fund Balance (883,313)$ (517,889)$ (75,800)$ (714,705)$ 442,089$ (85.4)%
Beg. Fund Balance, January 2019 2,062,371$
Net Change in Fund Balance, September 2019 (75,800)
Ending Fund Balance, September 2019 1,986,571$
2019 Budgeted Ending Fund Balance 1,179,058$
2019 2019 YTD Budget vs. Actual
Favorable (Unfavorable)
Percentage
25
Quarterly Financial Report Through Q3-2019 26
The table below presents the status of the projects with the most significant budget impact on the
fund. Many capital projects are budgeted over multiple years; what is displayed below is the 2019
portion of each project’s budget and year-to-date expenditures.
Notes:
Several large multi-year projects are reaching completion of construction in 2019 and several large projects
are beginning design, with construction anticipated in 2020 or later.
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 102 -Capital Project Expenditures
2019 YTD Budget
2019 YTD Actual
2018 YTD Actual
2019 YTD Actual:
$1.1M
2019 Budget:
$4.6M
2018 YTD Actual:
$2.9M
Name 2019 Budget YTD Actual Remaining
AWS Improvements - Hemlock to Poplar $1.6M $0.0M $1.5M
F Street SE Non-Motorized Improvements $0.5M $0.1M $0.4M
A St SE Corridor Signal Safety Improvements $0.4M $0.4M $0.0M
All Other Projects (25 Others Budgeted)$2.2M $0.6M $1.5M
Total $4.6M $1.1M $3.5M
*Components may not sum to total due to rounding.
Fund 102 - Arterial Street
Capital Projects Status *
26
Quarterly Financial Report Through Q3-2019 27
Fund 103 – Local Street Fund
The Local Street Fund is a special revenue fund used for local street preservation. Effective
January 1, 2019 through 2020 this fund is funded at a specific annual amount by real estate
excise tax (REET 2) whereas, previously, the funding source was sales tax on construction.
Through Q3-2019, revenues in this fund totaled $1.5 million, which is slightly higher than budget
expectations due to strong performance in interest earnings. This compares to collections of $2.0
million through Q3-2018. Expenditures through Q3-2019 were $783,000 and compare to
expenditures of $1.2 million through Q3-2018. Historically, well over half of this fund’s annual
expenditures occur in the final four months of each year due to the weather sensitivity of
pavement construction (this work needs to be done primarily in the summer and early fall). In
addition, several inclement weather situations during Q1-2019 were not conducive to street
construction. Highlighted in the table below and shown in the following graph are the fund’s total
expenditures related to capital projects.
Fund 103 - Local Street Fund 2018
Summary of Sources and Uses 2019 2019 YTD 2019 YTD 2018 YTD
Report Period: September 2019 Budget Budget Actual Actual Amount
Revenues
Sales Tax on Construction -$ -$ -$ 1,763,440$ -$
Operating Transfer In 1,900,000 1,462,500 1,462,500$ 150,000 - 0.0 %
Interest Earnings 12,000 8,433 58,470$ 47,781 50,037 593.3 %
Total Revenues 1,912,000$ 1,470,933$ 1,520,970$ 1,961,221$ 50,037$ 3.4 %
Expenditures
Capital Salary and Benefits 231,616 174,264 57,056 - 117,208 67.3 %
Capital Outlay 3,217,860 1,371,303 682,281 1,047,594 689,023 50.2 %
Subtotal - Capital Project Expenditures 3,449,476 1,545,568 739,337 1,047,594 806,231 52.2 %
Admin Salary and Benefits - - 13,667 101,947 (13,667)$
Admin Services and Charges 40,700 34,153 19,066 2,414 15,087 44.2 %
Interfund Payments for Services 15,200 11,400 11,400 9,180 (0) (0.0) %
Operating Transfer Out - - - 229 -
Total Expenditures 3,505,376$ 1,591,120$ 783,469$ 1,161,364$ 807,652$ 50.8 %
Net Change in Fund Balance (1,593,376)$ (120,187)$ 737,501$ 799,856$ 857,688$ (713.6) %
Beg. Fund Balance, January 2019 2,799,957$
Net Change in Fund Balance, September 2019 737,501
Ending Fund Balance, September 2019 3,537,458$
2019 Budgeted Ending Fund Balance 1,206,581$
2019 2019 YTD Budget vs. Actual
Favorable (Unfavorable)
Percentage
27
Quarterly Financial Report Through Q3-2019 28
The table below presents the status of the projects with the most significant budget impact on the
fund. Many capital projects are budgeted over multiple years; what is displayed below is the 2019
portion of each project’s budget and year-to-date expenditures.
Notes:
The 2019 Local Street Pavement Reconstruction project was awarded June 17, 2019.
$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
2019 YTD Budget
2019 YTD Actual
2018 YTD Actual
2019 Budget :
$3.4M
2018 YTD Actual:
$1.0M
2019 YTD Actual:
$0.7M
Name 2019 Budget YTD Actual Remaining
2019 Local Street Reconstruction $2.6M $0.4M $2.2M
2018 Citywide Pavement Patch and Overlay $0.5M $0.3M $0.1M
2020 Local Street Pavement Reconstruction $0.4M $0.0M $0.4M
All Other Projects (1 Other Budgeted)$0.0M $0.0M $0.0M
Total $3.4M $0.7M $2.7M
*Components may not sum to total due to rounding.
Fund 103 - Local Street
Capital Projects Status*
28
Quarterly Financial Report Through Q3-2019 29
Fund 105 – Arterial Street Preservation Fund
The Arterial Street Preservation Fund is a special revenue fund that 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 2019 include A Street SE Preservation, 2019 Citywide Pavement Patching
& Overlay, and 2018 Citywide Pavement Patching & Overlay. Through Q3-2019 revenues totaled
$2.2 million, which is approximately $166,000 lower than the same period last year. This is
primarily due to the timing associated with construction projects and their subsequent cost
reimbursements from grants and transfers-in.
Expenditures through Q3-2019 were $2.4 million as compared to $2.3 million through Q3-2018.
Historically, the majority of this fund’s expenditures occur in the second half of each year due to
the weather sensitivity of pavement construction (this work needs to be done primarily in the
summer and early fall). In addition, several inclement weather situations during Q1-2019 were not
conducive to street construction. Highlighted in the table below and shown in the following graph
are the fund’s total expenditures related to capital projects.
Fund 105 - Arterial Street Preservation 2018
Summary of Sources and Uses 2019 2019 YTD 2019 YTD 2018 YTD
Report Period: September 2019 Budget Budget Actual Actual Amount
Revenues
City Utility Tax 674,600$ 506,524$ 504,476$ 475,204$ (2,048)$ (0.4)%
Electric Utility Tax 711,600 547,027 550,683 578,074 3,656 0.7 %
Natural Gas Utility Tax 201,600 178,379 163,792 182,467 (14,587) (8.2)%
Cable TV Tax 190,100 141,765 146,294 152,717 4,529 3.2 %
Telephone Utility Tax 235,600 177,740 147,066 181,330 (30,674) (17.3)%
Garbage Utility Tax (External Haulers)22,400 16,800 18,186 16,681 1,386 8.3 %
Grants 940,511 231,235 84,617 106,627 (146,618) (63.4)%
Operating Transfer In 1,445,679 847,219 500,338 594,560 (346,881) (40.9)%
Interest Earnings 29,800 22,350 36,365 30,658 14,015 62.7 %
Total Revenues 4,451,890$ 2,669,040$ 2,151,818$ 2,318,317$ (517,222)$ (19.4)%
Expenditures
Salary and Benefits 241,000$ 178,423$ 438,878$ 287,288$ (260,455)$ (146.0)%
Capital Outlay 5,230,122 2,901,970 1,894,227 2,033,538 1,007,743 34.7 %
Subtotal - Capital Project Expenditures 5,471,122 3,080,393 2,333,106 2,320,826 747,288 24.3 %
Supplies - - - - -
Services and Charges 165,000 99,066 18,529 - 80,537 81.3
Operating Transfer Out 26,831 17,887 - - 17,887 100.0
Total Expenditures 5,662,953$ 3,197,347$ 2,351,635$ 2,320,826$ 845,712$ 26.5 %
Net Change in Fund Balance (1,211,063)$ (528,307)$ (199,817)$ (2,509)$ 328,490$ (62.2)%
Beg. Fund Balance, January 2019 2,044,459$
Net Change in Fund Balance, September 2019 (199,817)
Ending Fund Balance, September 2019 1,844,642$
2019 Budgeted Ending Fund Balance 833,396$
2019 2019 YTD Budget vs. Actual
Favorable (Unfavorable)
Percentage
29
Quarterly Financial Report Through Q3-2019 30
The table below presents the status of the projects with the most significant budget impact on the
fund. Many capital projects are budgeted over multiple years; what is displayed below is the 2019
portion of each project’s budget and year-to-date expenditures.
Notes:
The A Street SE Preservation project was awarded June 3, 2019.
The 2019 Citywide Patch and Overlay project was awarded May 6, 2019.
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 105 -Capital Project Expenditures
2019 YTD Budget
2019 YTD Actual
2018 YTD Actual
2019 2019
Budget:
$5.5M
2018 2018 YTD
Actual:
$2.3M
2019 2019 YTD
Actual:
$2.3M
Name 2019 Budget YTD Actual Remaining
A St SE Preservation $1.8M $0.4M $1.5M
2019 Citywide Pavement Patching & Overlay $1.0M $0.8M $0.3M
2018 Citywide Pavement Patching & Overlay $0.9M $0.7M $0.2M
All Other Projects (8 Others Budgeted)$1.7M $0.5M $1.2M
Total $5.5M $2.3M $3.1M
*Components may not sum to total due to rounding.
Capital Projects Status*
Fund 105 - Arterial Street Preservation
30
Quarterly Financial Report Through Q3-2019 31
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 revenues are used to address costs associated with City growth.
The fund houses two types of revenues: mitigation fees and impact fees. Mitigation fees are
variable charges collected as a result of State Environmental Policy Act (SEPA) reviews and the
City’s determination that a project must pay additional fees to compensate for a unique effect that
it has on the community. Impact fees are set charges collected automatically for a variety of
projects. These fees are adopted annually by the City Council based on projects anticipated in
the Capital Facilities Plan over the next six years.
About $1.8 million, or nearly 111%, of annual budgeted revenues were received through Q3-
2019. This significant favorable revenue performance was driven by the receipt of nearly
$600,000 in traffic impact fee revenue in Q2 from the Young’s Market truck warehouse and
distribution center. Additionally, a transfer-in of approximately $400,000 was completed in May to
pay for traffic mitigation fees related to the Legacy Senior Housing Project and the Auburn Town
Center.
Expenditures were significantly below budget due to the timing of capital projects funded by these
revenues. Of the twelve projects funded by parks impact fee revenues, only the Brannan Park
Synthetic Infield project has seen significant progress. There are three projects budgeted with
parks impact fee funding of at least $500,000 that have had minimal expenditures. Approximately
53% of the year-to-date expenditures of transportation impact fee revenue consists of scheduled
debt service payments.
Fund 124 - Mitigation Fees
Summary of Sources and Uses
Report Period Through:Ending Ending
September 2019 Fund Balance Fund Balance
Transportation Impact Fees 800,000$ 1,391,629$ 4,743,105$ 1,045,545$ 443,307$ 5,936,972$
Transportation Migitation Fees - 51,100 68,508 1,353 - 120,961
Fire Impact Fees 100,000 75,000 256,758 51,766 - 283,524
Fire Mitigation Fees - - 81 - - 81
Parks Impact Fees 100,000 2,507,077 3,183,719 70,000 424,997 5,235,799
Parks Mitigation Fees - 300,000 41,614 - - 341,614
School Impact Admin Fees 1,200 - 67,784 918 - 67,502
Wetland Mitigation Fees - 36,600 34,372 - - 70,972
Interest and Investment Income 195,000 - 195,000 221,175 - 221,175
Fees in Lieu of Improvements - 100,000 25,634 - 100,000 25,634
Operating Transfers-In 416,200 - 416,200 398,528 - 398,528
Total 1,612,400$ 4,461,406$ 9,032,775$ 1,789,285$ 968,304$ 12,702,762$
Beginning Fund Balance, January 2019 11,881,781$
Net Change in Fund Balance, September 2019 820,981
Ending Fund Balance, September 2019 12,702,762$
2019 Budgeted Ending Fund Balance 9,032,775$
YTD ACTUALSBUDGET
Revenues ExpendituresRevenuesExpenditures
31
Quarterly Financial Report Through Q3-2019 32
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 Q3-2019 the Water Utility had operating income of $5.2 million as compared to $4.4
million through Q3-2018. Total Water Fund operating revenues were $903,000 higher than
through Q3-2018, mainly due to strong performance in water sales – particularly the commercial
and irrigation categories. Water sales revenue is directly impacted by rate changes, which were
implemented across all water consumption categories effective January 1, 2019. Operating
expenditures through Q3-2019 were up $126,000, or 1.9% from Q3-2018. This variance is mainly
due to increases in personnel costs and to increased interfund utility taxes associated with higher
revenues.
Water sales by volume through September 2019 totaled 2.4 million hundred cubic feet (ccf) as
compared to 2.3 million ccf through September 2018, an increase of 5.0%. Total consumption
was up across all customer categories except school and wholesale. Significant increases by
volume were seen in commercial, irrigation and multifamily usage. While overall consumption has
increased compared to the same period last year, the Water Utility has seen a general trend of
decreased year-over-year consumption on a per account basis due largely to conservation efforts
and appliance efficiency improvements.
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
$2,000
CCFThousandsWater Revenues vs Water Sold
2019 vs 2018
2018 Water Sales ($)
2019 Water Sales ($)
2018 Water Sold (ccf)
2019 Water Sold (ccf)
32
Quarterly Financial Report Through Q3-2019 33
The Sewer Utility finished Q3-2019 with operating income of $2.2 million as compared to $1.5
million through Q3-2018. Increased revenues from charges for City sewer service following the
rate adjustment in January 2019 account for about half of the favorable variance; the remainder
consists mainly of a one-time $203,000 refund from the Department of Revenue for overpayment
of excise tax as well as interest earnings that already significantly exceed budget projections.
Year-to-date operating expenditures in the Sewer Utility were slightly below Q3-2018, with
spending at similar levels to last year in each category.
Through Q3-2019, the Stormwater Utility had operating income of $2.3 million compared with
$2.0 million through Q3-2018. Operating revenues are up $235,000 compared to Q3-2018 due to
charges for City storm service, which saw increases to all non-single family variable rates, as well
as from strong investment income performance.
Operating expenditures in the Stormwater Utility were down $56,000 from Q3-2018, contributing
to the higher operating income noted above. Factors contributing to this include a decrease in
spending on repairs and maintenance and the timing of certain intergovernmental payments.
Through Q3-2019 the Solid Waste Utility Fund had $11.9 million in operating revenues,
compared to $11.6 million in operating expenditures. 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 September 2019, Waste Management serviced 15,511 customers
(79% of customers) and Republic Services serviced 4,155 customers (21% of customers).
The current mix of solid waste customer account types is:
89.7% Residential
7.8% Commercial
2.5% 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 Q3-2019, the total diversion rate
was 28.6%, which represents a total of 14,825 tons of waste that was diverted from landfills.
33
Quarterly Financial Report Through Q3-2019 34
2019 Tons Collected and Diversion Rates:
Of the total tonnage collected through Q3-2019, 33% was collected from residential customers,
14% from multifamily customers, and 53% from commercial customers, as shown in the following
graph.
6,016
4,562
5,433
6,489 6,482
5,666
6,043
5,693 5,539
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19TonnageSolid Waste Tonnage by Customer Type
Residential Multifamily Commercial
34
Quarterly Financial Report Through Q3-2019 35
In January 2019, the Auburn Municipal Airport transitioned from contracted management services
through a third-party management company to management of the Airport by in-house (City)
staff.
The Airport Fund finished Q3-2019 with operating income of $331,000 as compared with
operating income of $263,000 through Q3-2018. Operating revenues in the Airport Fund are up
$363,000 over Q3-2018, largely due to sales of aviation fuel. Aviation fuel was previously sold by
AMG, with a portion of the profit remitted to the City. Currently the City sells fuel directly, and
recovers all associated revenue.
Operating expenditures in the Airport Fund through Q3-2019 have increased by $295,000 over
the same period last year. A significant portion of this increase is due to the purchase of aviation
fuel for resale; the remaining variance consists largely of interfund charges related to City internal
services, repairs and maintenance, public utility costs, and interfund transfers to fund one-time
technology and vehicle purchases associated with bringing the management of the facilities in-
house.
Through Q3-2019, the Cemetery Fund experienced operating income of $146,000 as compared
with an operating income of $174,000 through Q3-2018. While sales of lots have decreased from
2018, this is generally offset by increases in openings/closings and sales of liners and markers.
Overall, operating revenues are up by $32,000, or 3.0% while operating expenditures are up
$60,000 or 6.7% from the same period last year due to inventory purchases and citywide internal
service allocations.
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
ThousandsCEMETERY
2019 Budgeted
Revenue
2019 YTD Actual
Revenue
2018 Actual Revenue
2019 YTD Actual
Expenses
Cumulative Revenues & Expenditures
2019 Budget vs. Actual
35
Quarterly Financial Report Through Q3-2019 36
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 2019. As a result, the expenditure
balance gradually diminishes each month throughout the year.
No significant variances are reported in the Workers’ Compensation, Facilities, Innovation &
Technology, or Equipment Rental Funds.
Investment Portfolio
The City’s total cash and investments at the end of the Q3-2019 totaled $148.9 million, and
compares to $147.8 million at the end of Q2-2019. [attachment]
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 Q3-2019, 3,905
P-Card transactions were processed as compared with 1,090 purchase order transactions.
Total incentive payments received from US Bank in Q3-2019 totaled $26,734. These are
estimated payments since quarterly rebate checks are not actually received until the next quarter.
There is also an annual incentive payment from the State that is received in the year following.
The annual State incentive payment for 2018 was $27,723 and was received in April of 2019.
921
3,924
1,090
3,905
-
1,000
2,000
3,000
4,000
5,000
Purchase
Order
Transactions
PCard
Transactions
PCard
Incentives
Received
(see text)TransactionsPurchase Order and PCard Transactions
2018 and 2019
Q3
$23,975 $26,734
3,129
12,318
$95,795
3,305
12,038
$103,450
-
5,000
10,000
15,000
20,000
25,000
Purchase
Order
Transactions
PCard
Transactions
PCard
Incentives
Received
(see text)Transactions2018 and 2019
YTD
2018 2019
36
Quarterly Financial Report Through Q3-2019 37
Contact Information
This report is prepared by the Finance Department. Additional financial information can also be
viewed at our website: http://www.auburnwa.gov/. For any questions about this report please
contact Jamie Thomas at jdthomas@auburnwa.gov.
37
Investment Purchase Book Maturity Yield to
Type Date Value Date Maturity
State Investment Pool Various 97,233,193$ Various 2.20%
KeyBank Money Market Various 4,485,883 Various 0.15%
OpusBank Public Interest Acct Various 10,410,429 Various 2.28%
FHLB 2/28/2018 2,001,840 2/28/2023 2.65%
FFCB 5/21/2018 1,997,160 10/21/2019 2.48%
FAMCA 6/27/2018 1,999,940 7/16/2020 2.50%
FFCB 7/16/2018 2,000,620 7/16/2020 2.60%
TX ST-BABs-A 8/8/2018 1,761,620 4/1/2020 2.68%
FFCB 8/27/2018 2,004,660 2/23/2021 2.70%
RFCSP 10/5/2018 5,032,674 10/15/2019 2.69%
RFCSP 12/14/2018 5,012,903 7/15/2020 2.73%
RFCSP 2/19/2019 4,999,824 1/15/2021 2.52%
RFCSP 5/9/2019 4,999,802 10/15/2020 2.23%
STRIPS 7/26/2019 4,999,777 11/15/2020 1.83%
Total Cash & Investments 148,940,325$ 2.206%
Investment Mix % of Total
State Investment Pool 65.3%Current 6-month treasury rate 1.89%
KeyBank Money Market 3.0%Current State Pool rate 2.20%
OpusBank Public Interest Acct 7.0%KeyBank Money Market 0.15%
FHLB 1.3%OpusBank Public Interest Acct 2.28%
FFCB 4.0%Blended Auburn rate 2.21%
FAMCA 1.3%
TX ST-BABs-A 1.2%
RFCSP 13.5%
STRIPS 3.4%
100.0%
City of Auburn
Investment Portfolio Summary
September 30, 2019
Summary
38
SALES TAX SUMMARY
SEPTEMBER 2019 SALES TAX DISTRIBUTIONS (FOR JULY 2019 RETAIL ACTIVITY)
2018 Annual Total 2018 YTD 2019 YTD YTD 2018 Annual Total 2018 YTD 2019 YTD YTD
NAICS CONSTRUCTION (Nov '17-Oct '18)(Nov '17-Jul '18)(Nov '18-Jul '19)% Diff NAICS AUTOMOTIVE (Nov '17-Oct '18)(Nov '17-Jul '18)(Nov '18-Jul '19)% Diff
236 Construction of Buildings 1,257,918 993,660 799,302 -19.6%441 Motor Vehicle and Parts Dealer 3,843,704 2,883,183 2,840,445 -1.5%
237 Heavy and Civil Construction 170,543 117,481 98,473 -16.2%447 Gasoline Stations 278,087 209,029 196,657 -5.9%
238 Specialty Trade Contractors 881,157 652,299 608,960 -6.6%TOTAL AUTOMOTIVE 4,121,791$ 3,092,212$ 3,037,102$ -1.8%
TOTAL CONSTRUCTION 2,309,617$ 1,763,440$ 1,506,735$ -14.6%Overall Change from Previous Year (55,110)$
Overall Change from Previous Year (256,705)$
2018 Annual Total 2018 YTD 2019 YTD YTD
2018 Annual Total 2018 YTD 2019 YTD YTD NAICS RETAIL TRADE (Nov '17-Oct '18)(Nov '17-Jul '18)(Nov '18-Jul '19)% Diff
NAICS MANUFACTURING (Nov '17-Oct '18)(Nov '17-Jul '18)(Nov '18-Jul '19)% Diff 442 Furniture and Home Furnishings 209,879 152,512 160,025 4.9%
311 Food Manufacturing 7,745 5,419 6,802 25.5%443 Electronics and Appliances 229,028 170,495 204,900 20.2%
312 Beverage and Tobacco Products 12,379 9,021 8,929 -1.0%444 Building Material and Garden 576,468 427,143 486,621 13.9%
313 Textile Mills 559 394 180 -54.2%445 Food and Beverage Stores 387,928 285,107 303,970 6.6%
314 Textile Product Mills 1,860 1,243 2,023 62.8%446 Health and Personal Care Store 420,087 312,578 329,890 5.5%
315 Apparel Manufacturing 347 213 537 152.4%448 Clothing and Accessories 1,170,083 863,543 901,139 4.4%
316 Leather and Allied Products 221 136 267 96.4%451 Sporting Goods, Hobby, Books 220,869 160,584 185,343 15.4%
321 Wood Product Manufacturing 16,224 10,250 10,227 -0.2%452 General Merchandise Stores 870,096 678,091 620,494 -8.5%
322 Paper Manufacturing 12,982 6,856 8,867 29.3%453 Miscellaneous Store Retailers 689,386 498,062 676,134 35.8%
323 Printing and Related Support 46,020 36,400 33,825 -7.1%454 Nonstore Retailers 267,088 208,455 174,803 -16.1%
324 Petroleum and Coal Products 9,780 7,682 6,195 -19.4%TOTAL RETAIL TRADE 5,040,912$ 3,756,570$ 4,043,320$ 7.6%
325 Chemical Manufacturing 12,512 9,407 9,857 4.8%Overall Change from Previous Year 286,750$
326 Plastics and Rubber Products 8,844 7,269 5,819 -19.9%
327 Nonmetallic Mineral Products 21,776 14,703 15,128 2.9%
331 Primary Metal Manufacturing 4,065 950 31,445 3208.5%2018 Annual Total 2018 YTD 2019 YTD YTD
332 Fabricated Metal Product Manuf 26,115 19,717 24,399 23.7%NAICS SERVICES (Nov '17-Oct '18)(Nov '17-Jul '18)(Nov '18-Jul '19)% Diff
333 Machinery Manufacturing 24,283 19,631 17,475 -11.0%51*Information 637,625 487,341 505,756 a 3.8%
334 Computer and Electronic Product 7,184 4,858 5,565 14.5%52*Finance and Insurance 140,135 105,510 104,707 -0.8%
335 Electric Equipment, Appliances 791 395 174 -55.8%53*Real Estate, Rental, Leasing 367,824 271,291 321,782 18.6%
336 Transportation Equipment Man 488,093 363,573 356,059 -2.1%541 Professional, Scientific, Tech 253,684 190,908 248,422 30.1%
337 Furniture and Related Products 19,899 13,802 16,159 17.1%551 Company Management 16 9 1,138 12877.0%
339 Miscellaneous Manufacturing 32,607 24,097 29,819 23.7%56*Admin. Supp., Remed Svcs 423,760 303,074 389,522 28.5%
TOTAL MANUFACTURING 754,285$ 556,018$ 589,753$ 6.1%611 Educational Services 47,224 32,771 31,727 -3.2%
Overall Change from Previous Year 33,735$ 62*Health Care Social Assistance 93,420 62,303 72,041 15.6%
71*Arts and Entertainment 119,180 89,259 85,220 -4.5%
72*Accommodation and Food Svcs 1,435,327 1,062,325 1,087,824 2.4%
2018 Annual Total 2018 YTD 2019 YTD YTD 81*Other Services 560,054 409,512 456,165 11.4%
NAICS TRANSPORTATION AND WAREHOUSING (Nov '17-Oct '18)(Nov '17-Jul '18)(Nov '18-Jul '19)% Diff 92*Public Administration 150,574 117,127 1,269 -98.9%
481 Air Transportation 3 3 0 -100.0%TOTAL SERVICES 4,228,822$ 3,131,431$ 3,305,574$ 5.6%
482 Rail Transportation 25,453 17,032 16,496 -3.2%Overall Change from Previous Year 174,143$
484 Truck Transportation 26,564 23,737 11,049 -53.5%
485 Transit and Ground Passengers 56 44 27 -38.9%
488 Transportation Support 52,211 39,291 28,328 -27.9%2018 Annual Total 2018 YTD 2019 YTD YTD
491 Postal Service 1,007 833 541 -35.1%NAICS MISCELLANEOUS (Nov '17-Oct '18)(Nov '17-Jul '18)(Nov '18-Jul '19)% Diff
492 Couriers and Messengers 1,359 1,233 218 -82.3%000 Unknown 0 0 0 N/A
493 Warehousing and Storage 13,554 10,513 7,288 -30.7%111-115 Agriculture, Forestry, Fishing 3,656 2,848 3,719 30.6%
TOTAL TRANSPORTATION 120,208$ 92,685$ 63,946$ -31.0%211-221 Mining & Utilities 26,370 19,400 21,471 10.7%
Overall Change from Previous Year (28,739)$ 999 Unclassifiable Establishments 123,605 73,541 167,494 127.8%
TOTAL SERVICES 153,632$ 95,789$ 192,684$ 101.2%
Overall Change from Previous Year 96,895$
2018 Annual Total 2018 YTD 2019 YTD YTD
NAICS WHOLESALE TRADE (Nov '17-Oct '18)(Nov '17-Jul '18)(Nov '18-Jul '19)% Diff
423 Wholesale Trade, Durable Goods 1,147,872 864,620 897,370 b 3.8%GRAND TOTAL 18,198,285$ 13,588,552$ 13,872,916$
424 Wholesale Trade, Nondurable 315,956 232,167 229,311 -1.2%Overall Change from Previous Year 284,365$ 2.1%
425 Wholesale Electronic Markets 5,189 3,620 7,120 96.7%
TOTAL WHOLESALE 1,469,017$ 1,100,407$ 1,133,801$ 3.0%Total September 2019 Sales Tax Distributions 1,604,250$
Overall Change from Previous Year 33,395$ Dollar Increase from September 2018 84,370$
Percent Increase from September 2018
Comparisons:
Includes Adjustments in excess of +/- $10,000.September 2018 13,588,552 12,068,672 1,519,880$
a. WA State Department of Revenue audit adjustment to sales tax returns for February 2019 Reporting (adjustment: $14,165).September 2017 12,898,928 11,454,688 1,444,240$
b. WA State Department of Revenue audit adjustment to sales tax returns for August 2019 Reporting (adjustment: $10,411).
09/24/19
Prepared by Auburn Finance Department
5.6%
39
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 15,471,500 11,698,945 (3,772,555) 9,014,200 6,700,046 (2,314,154) 18,370,000 13,584,042 (4,785,958) 10,085,900 7,547,429 (2,538,471)
Grants - - - - - -
Interest Earnings 20,000 176,939 156,939 20,000 107,968 87,968 2,500 19,293 16,793 15,000 104,068 89,068
Rents, Leases, Concessions, & Other 187,000 129,460 (57,540) 70,000 239,151 169,151 - - - 56,000 42,908 (13,092)
TOTAL OPERATING REVENUES 15,678,500 12,005,344 (3,673,156) 9,104,200 7,047,165 (2,057,035) 18,372,500 13,603,336 (4,769,164) 10,156,900 7,694,405 (2,462,495)
OPERATING EXPENSES
Salaries & Wages 2,472,136 1,778,807 693,329 1,478,205 1,049,666 428,539 - - - 2,511,990 1,767,469 744,521
Benefits 1,335,528 908,898 426,630 783,349 537,595 245,754 - - - 1,329,580 887,397 442,183
Supplies 364,244 221,806 142,438 136,550 64,501 72,049 - - - 84,550 71,585 12,965
Other Service Charges 4,455,849 2,219,726 2,236,123 2,912,150 1,965,221 946,929 18,215,600 13,387,096 4,828,504 1,994,100 1,167,618 826,482
Intergovernmental Services (Less Transfers Out)- - - - - -
Waste Management Payments See Note
Sewer Metro Services - - -
Debt Service Interest 1,092,600 376,984 715,616 245,500 131,058 114,442 - - - 311,100 169,233 141,867
Interfund Operating Rentals & Supplies 1,773,617 1,346,847 426,770 1,391,917 1,059,921 331,997 - - - 1,818,400 1,374,827 443,573
TOTAL OPERATING EXPENSES 11,493,974 6,853,068 4,640,906 6,947,671 4,807,963 2,139,708 18,215,600 13,387,096 4,828,504 8,049,720 5,438,129 2,611,591
OPERATING REVENUES LESS EXPENSES
BEFORE DEPRECIATION 4,184,526 5,152,276 967,750 2,156,529 2,239,202 82,673 156,900 216,239 59,339 2,107,180 2,256,276 149,096
NON-OPERATING REVENUES
Operating Transfers-in - - -
Intergovernmental Loan 3,135,100 39,258 3,095,842
Other Non-Operating Revenues -
NON-OPERATING EXPENSES
Transfer to Capital Subfund 3,135,100 39,258 3,095,842 - - - - - -
Other Operating Transfers-out 381,491 27,296 354,195 328,692 9,676 319,016 404,392 83,676 320,716
Debt Service Principal 1,775,400 650,014 1,125,386 563,400 288,262 275,138 438,000 - 438,000
Net Change in Restricted Net Assets - 67,435 67,435 - (14,769) (14,769) - 21,527 21,527
Interfund Loan Repayment
BEGINNING WORKING CAPITAL - January 1, 2019 7,685,258 7,685,258 - 5,187,057 5,187,057 - 3,567,929 3,567,929 - 4,754,678 4,754,678 -
ENDING WORKING CAPITAL - September 30, 2019 9,712,893 12,092,789 2,379,896 6,451,494 7,143,090 691,596 3,724,829 3,784,168 59,339 6,019,466 6,905,751 886,285
NET CHANGE IN WORKING CAPITAL (see Note)2,027,635 4,407,531 2,379,896 1,264,437 1,956,033 691,596 156,900 216,239 59,339 1,264,788 2,151,073 886,285
CAPITAL FUND:
CAPITAL REVENUES
Interest Revenue 10,000 27,420 17,420 80,000 187,447 107,447 80,000 127,249 47,249
Grants 350,592 341,129 (9,463) 181,965 5,792 (176,173)
Contributions - - - - - - -
Other Non-Operating Revenue - 10,340 10,340 - - - - - -
Increase In Contributions - System Development 937,700 416,463 (521,237) 654,700 616,101 (38,599) 489,900 334,309 (155,591)
Interfund Revenues - - - - - - - - -
Increase In Contributions - FAA - - - - - - - - -
Proceeds of Debt Activity 7,178,324 - (7,178,324) - - - - - -
Transfers In from Operating Sub-Fund 3,135,100 39,258 (3,095,842) - - - - - -
Transfer In from Other Funds - - - - - - - -
TOTAL CAPITAL REVENUES 11,611,716 834,610 (10,777,106) 734,700 803,548 68,848 751,865 467,350 (284,515)
CAPITAL EXPENSES
Other Non-Operating Expense - - - - - - - - -
Increase In Fixed Assets - Salaries 424,300 174,077 250,223 182,900 51,963 130,938 202,900 50,399 152,501
Increase In Fixed Assets - Benefits 169,700 84,240 85,460 73,100 24,796 48,304 81,100 23,540 57,560
Increase In Fixed Assets - Services 300 140 160 1,900 616 1,284 1,900 427 1,473
Increase In Fixed Assets - Site Improvements - 12,419 (12,419) - - - - -
Increase In Fixed Assets - Equipment - - - 28,000 - 28,000 - - -
Increase In Fixed Assets - Construction 10,666,543 1,427,837 9,238,706 3,617,608 184,037 3,433,571 3,507,258 182,927 3,324,331
Operating Transfers Out 76,400 66,122 10,278 50,000 50,000 - 50,000 50,000 -
TOTAL CAPITAL EXPENSES 11,337,243 1,764,835 9,572,408 3,953,508 311,412 3,642,096 3,843,158 307,293 3,535,865
BEGINNING WORKING CAPITAL - January 1, 2019 1,968,494 1,968,494 - 12,489,613 12,489,613 - 12,397,826 12,397,826 -
2,242,967 1,038,269 (1,204,698) 9,270,805 12,981,749 3,710,944 9,306,533 12,557,883 3,251,350
NET CHANGE IN WORKING CAPITAL (see Note)274,473 (930,225) (1,204,698) (3,218,808) 492,136 3,710,944 (3,091,293) 160,057 3,251,350
Total Change in Working Capital 2,302,108 3,477,305 1,175,197 (1,954,371) 2,448,169 4,402,540 156,900 216,239 59,339 (1,826,505) 2,311,130 4,137,635
(*) Depreciation 3,612,800 2,901,840 2,333,400 1,707,785 - - 2,184,100 1,571,160
OPERATING & CAPITAL FUNDS
WATER
ENTERPRISE FUNDS
SEWER SEWER METRO STORMCash Basis through September 2019
(*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures; payments will be made as scheduled in December 2019. Working Capital = Current Assets
minus Current Liabilities
ENDING WORKING CAPITAL - September 30, 2019
40
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 See Note
Sewer Metro Services
Debt Service Interest
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, 2019
ENDING WORKING CAPITAL - September 30, 2019
NET CHANGE IN WORKING CAPITAL (see Note)
CAPITAL FUND:
CAPITAL REVENUES
Interest Revenue
Grants
Contributions
Other Non-Operating Revenue
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
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, 2019
NET CHANGE IN WORKING CAPITAL (see Note)
Total Change in Working Capital
(*) Depreciation
OPERATING & CAPITAL FUNDS
Cash Basis through September 2019
Working Capital = Current Assets
minus Current Liabilities
ENDING WORKING CAPITAL - September 30, 2019
Budget
YTD
Actual Variance Budget
YTD
Actual Variance Budget
YTD
Actual Variance Budget
YTD
Actual Variance
464 464 465 465 466 466 -
16,071,700 11,808,013 (4,263,687) 1,285,700 1,055,242 (230,458) 1,086,000 1,088,647 2,647 - - -
88,600 13,925 (74,675) - 2,000 2,000 - -
88,800 84,879 (3,921) 6,900 18,737 11,837 1,000 14,788 13,788 21,000 21,368 368
- 4,202 4,202 6,000 5,873 (127) - 214 214
16,249,100 11,911,019 (4,338,081) 1,298,600 1,081,852 (216,748) 1,087,000 1,103,648 16,648 21,000 21,368 368
- 761 (761) 207,803 157,797 50,006 464,932 349,219 115,713 - - -
- 69 (69) 149,990 93,743 56,247 269,930 193,344 76,586 175,000 31,580 143,420
53,400 3,143 50,257 292,700 293,913 (1,213) 221,700 186,705 34,995 - - -
2,123,775 1,335,293 788,482 247,400 174,460 72,940 151,500 111,151 40,349 5,600 299,201 (293,601)
- - - - - - - - - - - -
13,485,300 9,794,313 3,690,987
- - - 3,700 2,258 1,442 - - - - - -
612,000 478,664 133,336 38,600 28,950 9,650 155,900 117,390 38,510 - - -
16,274,475 11,612,244 4,662,231 940,193 751,119 189,074 1,263,962 957,808 306,154 180,600 330,781 (150,181)
(25,375) 298,775 324,150 358,407 330,733 (27,674) (176,962) 145,840 322,802 (159,600) (309,413) (149,813)
100,000 - (100,000) - - -
350,000 83,179 100,000 -
21,831 8,082 13,749 10,000 4,236 5,764 - - -
186,500 - 186,500 - - -
- (1,766) (1,766) - - -
42,100 31,175 10,925
5,647,783 5,647,783 - 590,315 590,315 - 702,687 702,687 - 1,932,526 1,932,526 -
5,600,577 5,938,475 337,898 360,122 804,223 444,101 525,725 848,527 322,802 1,772,926 1,623,113 (149,813)
(47,206) 290,692 337,898 (230,193) 213,908 444,101 (176,962) 145,840 322,802 (159,600) (309,413) (149,813)
2,000 1,464 (536) - 4,531 4,531
104,316 12,610 (91,706) - - -
- - - - - -
- - - - - -
- - - - - -
2,367,730 193,882 (2,173,848) - - -
- - - - - -
350,000 83,179 (266,821) 100,000 - (100,000)
- - - 55,442 - (55,442)
2,824,046 291,136 (2,532,910) 155,442 4,531 (150,911)
- - - - - -
4,300 57 4,243 - - -
1,700 41 1,659 - - -
100 8 92 100 19 81
- - - -
- - - -
2,928,308 322,463 2,605,845 380,442 - 380,442
73,200 69,034 4,166 - - -
3,007,608 391,603 2,616,005 380,542 19 380,523
211,881 211,881 - 253,352 253,352 -
28,319 111,413 83,094 28,252 257,864 229,612
(183,562) (100,468) 83,094 (225,100) 4,512 229,612
(47,206) 290,692 (413,755) 113,440 527,195 (402,062) 150,352 552,414 (159,600) (309,413) (149,813)
19,900 14,114 490,300 318,706 45,000 24,826 - -
Note: Includes September's Waste Management
payment ($1,129,012), which will be made in October.
INSURANCE
(*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures;
payments will be made as scheduled in December 2019.
ENTERPRISE FUNDS
SOLID WASTE AIRPORT CEMETERY
INTERNAL SERVICE FUNDS
see Note
41
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 See Note
Sewer Metro Services
Debt Service Interest
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, 2019
ENDING WORKING CAPITAL - September 30, 2019
NET CHANGE IN WORKING CAPITAL (see Note)
CAPITAL FUND:
CAPITAL REVENUES
Interest Revenue
Grants
Contributions
Other Non-Operating Revenue
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
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, 2019
NET CHANGE IN WORKING CAPITAL (see Note)
Total Change in Working Capital
(*) Depreciation
OPERATING & CAPITAL FUNDS
Cash Basis through September 2019
Working Capital = Current Assets
minus Current Liabilities
ENDING WORKING CAPITAL - September 30, 2019
Budget
YTD
Actual Variance Budget
YTD
Actual Variance Budget
YTD
Actual Variance Budget
YTD
Actual Variance
- - 568 568 560 560
1,075,200 814,057 (261,143) 3,436,500 2,609,132 (827,368) 6,276,600 4,714,752 (1,561,848) 2,007,606 1,505,705 (501,901)
- - - - - -
46,000 42,516 (3,484) 24,600 34,987 10,387 8,000 49,573 41,573 - 56,416 56,416
50,000 4,777 (45,223) - - - - - - - 153,267 153,267
1,171,200 861,350 (309,850) 3,461,100 2,644,118 (816,982) 6,284,600 4,764,325 (1,520,275) 2,007,606 1,715,388 (292,218)
- - - 728,510 504,504 224,006 2,070,555 1,503,359 567,196 604,034 450,353 153,681
250,000 108,949 141,051 424,233 294,895 129,338 1,072,035 730,879 341,156 324,807 225,067 99,740
- - - 144,720 78,236 66,484 469,150 251,011 218,139 1,092,000 723,752 368,248
448,315 203,520 244,795 1,995,950 1,194,440 801,510 2,861,600 2,216,311 645,289 493,050 287,687 205,363
- - - - - - - - - - - -
- - - - - - - - - 2,700 1,222 1,478
119,800 93,793 26,007 159,700 119,775 39,925 183,000 137,250 45,750 291,600 219,626 71,974
818,115 406,262 411,853 3,453,113 2,191,850 1,261,263 6,656,340 4,838,809 1,817,531 2,808,191 1,907,706 900,485
353,085 455,088 102,003 7,987 452,269 444,282 (371,740) (74,484) 297,256 (800,585) (192,319) 608,266
44,500 40,000 (4,500) 276,210 54,582 (221,628) - - -
733,950 321,688 412,262 30,000 17,000 13,000 - - -
- - -
- - - - - - - (57,631) (57,631)
1,165,108 1,165,108 - 1,767,017 1,767,017 - 2,613,666 2,613,666 - 3,361,101 3,361,101 -
1,518,193 1,620,196 102,003 1,085,554 1,937,598 852,044 2,488,136 2,576,764 88,628 2,560,516 3,226,413 665,897
353,085 455,088 102,003 (681,463) 170,581 852,044 (125,530) (36,902) 88,628 (800,585) (134,688) 665,897
- 26,717 26,717 - 75,723 75,723
60,000 60,000 -
- - - - - -
- - - - - -
- - - - - -
- - - 1,771,194 1,328,396 (442,798)
- - - - - -
- - - - - -
- - - - - -
34,700 - (34,700) 1,048,000 139,434 (908,566)
34,700 26,717 (7,983) 2,879,194 1,603,552 (1,275,642)
- - - - - -
- 4,357 (4,357) - - -
- 2,277 (2,277) - - -
300 116 184 500 314 186
- -
883,700 76,777 806,923 2,489,450 981,495 1,507,955
20,000 13,255 6,745 1,140,000 - 1,140,000
- - - - - -
904,000 96,782 807,218 3,629,950 981,809 2,648,141
1,526,533 1,526,533 - 3,770,132 3,770,132 -
657,233 1,456,468 799,235 3,019,376 4,391,875 1,372,499
(869,300) (70,065) 799,235 (750,756) 621,743 1,372,499
353,085 455,088 102,003 (681,463) 170,581 852,044 (994,830) (106,967) 887,863 (1,551,341) 487,055 2,038,396
- - - - 500,000 230,191 1,250,000 968,604
INTERNAL SERVICE FUNDS
WORKER'S COMPENSATION FACILITIES INNOVATION & TECHNOLOGY EQUIPMENT RENTAL
42