Loading...
HomeMy WebLinkAboutQ3 2020 Financial Report AGENDA BILL APPROVAL FORM Agenda Subject: Financial Report Through September 2020 Date: November 6, 2020 Department: Finance Attachments: Financial Report through September Budget Impact: $0 Administrative Recommendation: For discussion only. Background Summary: The 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 2020 status report based on financial data available as of October 20, 2020. Sales tax information represents business activity that occurred through July 2020. Staff: Thomas Meeting Date: November 23, 2020 Item Number: Quarterly Financial Report Through September 2020 General Fund Summary $12.1 $13.1 $10.4 $4.0 $0.5 $1.3 $4.3 $3.3 $37.5 $14.6 $7.1 $0.4 $12.4 $15.5 $11.0 $4.5 $0.8 $1.3 $5.0 $31.5 $13.7 $7.0 $0.0 $3.1 PropertyTaxesSalesTaxesOtherTaxesIntergovernmental(Grants, etc.)DevelopmentService FeesCulture &RecreationOther Fees& ChargesOtherRevenuesPersonnelSupplies& ServicesOtherExpendituresTransfersOutRevenues Expenditures $0 $10 $20 $30 $40 $50 $60 Millions2020 Budget 2020 Actuals (Favorable) 2020 Actuals (Unfavorable) General Fund Revenues and Expenditures (Through September 2020)$48.9 $59.5$53.6 $52.3 Total Revenues Total Expenditures $0 $10 $20 $30 $40 $50 $60 $70 Millions$0.8 $2.5 $2.0 $2.7 $2.1 $4.0 $0.7 $3.5 $22.4 $3.3 $9.7 $2.7 $3.2 $0.7 $2.5 $1.8 $2.4 $1.7 $3.2 $0.6 $3.4 $21.3 $2.7 $8.1 $2.5 $1.3 Council& MayorAdministrativeServicesHumanResourcesFinanceCity AttorneyCommunityDevelopmentCommunity &Human ServicesJail - SCOREPolicePublicWorksParks, Arts& RecreationStreetsNon-Departmental$0 $5 $10 $15 $20 $25 $30 Millions2020 Budget 2020 Actuals (Favorable) 2020 Actuals (Unfavorable) General Fund Expenditures by Department (Through September 2020) 1 Quarterly Financial Report Through September 2020 2 General Fund 2019 Summary of Sources and Uses Annual YTD YTD YTD Budget Budget Actual Actual Amount Operating Revenues Property Tax 7 22,000,000$ 12,115,200$ 12,376,181$ 12,228,024$ 260,981$ 2.2 % Retail Sales Tax 8-9 15,576,200 11,528,900 13,678,442 13,825,585 2,149,542 18.6 % Affordable Housing Sales Tax Credit 150,000 112,500 104,759 - (7,741)(6.9)% Sales Tax - Pierce County Parks 110,800 82,000 80,900 82,419 (1,100)(1.3)% Sales Tax - Annexation Credit - - - 373,279 0 N/A Criminal Justice Sales Tax 1,910,000 1,407,100 1,667,278 1,783,637 260,178 18.5 % Brokered Natural Gas Tax 131,000 103,500 123,168 172,481 19,668 19.0 % City Utilities Tax 10-11 4,521,700 3,384,100 3,413,691 3,026,859 29,591 0.9 % Admissions Tax 11 252,800 189,603 197,965 334,077 8,362 4.4 % Electric Tax 10-11 4,024,400 3,135,600 3,242,922 2,753,414 107,322 3.4 % Natural Gas Tax 10-11 1,201,900 1,067,100 1,114,296 818,958 47,196 4.4 % Cable Franchise Fee 904,000 678,000 677,983 694,741 (17)(0.0)% Cable Utility Tax 1,135,100 851,682 864,091 731,470 12,408 1.5 % Cable Franchise Fee - Capital 65,000 48,750 46,529 48,471 (2,221)(4.6)% Telephone Tax 10-11 981,900 752,700 831,771 735,332 79,071 10.5 % Solid Waste Tax (external)10-11 154,600 115,920 166,230 109,116 50,310 43.4 % Leasehold Excise Tax 51,000 38,250 211,704 197,512 173,454 453.5 % Gambling Excise Tax 12 82,100 61,575 74,995 276,973 13,420 21.8 % Taxes sub-total 53,252,500$ 35,672,480$ 38,872,904$ 38,192,348$ 3,200,423$ 9.0 % Business License Fees 12-13 328,000$ 160,100$ 147,995$ 126,563$ (12,106)$ (7.6)% Building Permits 14 720,000 456,900 686,295 627,371 229,395 50.2 % Other Licenses & Permits 551,300 406,200 729,676 766,440 323,476 79.6 % Intergovernmental (Grants, etc.)15-16 8,031,370 3,953,285 4,529,943 4,733,859 576,659 14.6 % Charges for Services:16-18 % General Government Services 16 2,823,620 2,032,510 2,234,136 1,944,889 201,626 9.9 % Public Safety 16-17 964,000 723,000 704,263 847,021 (18,737)(2.6)% Development Services Fees 16-17 650,000 475,100 754,150 850,551 279,050 58.7 % Culture and Recreation 16, 18 1,492,380 1,269,200 1,332,318 2,224,932 63,118 5.0 % Fines and Penalties 18-19 668,500 498,250 475,518 642,069 (22,732) (4.6)% Fees/Charges/Fines sub-total 16,229,170$ 9,974,545$ 11,594,294$ 12,763,695$ 1,619,749$ 16.2 % Interest and Investment Earnings 20 700,700$ 493,680$ 377,313$ 291,861$ (116,367)$ (23.6)% Rents and Leases 20 507,600 426,800 386,007 793,273 (40,793)(9.6)% Contributions and Donations 20 46,200 37,000 28,876 26,539 (8,124)(22.0)% Other Miscellaneous 20 230,800 179,100 171,276 330,377 (7,824)(4.4)% Transfers In 4,081,527 2,079,645 2,081,527 104,006 1,882 0.1 % Insurance Recoveries - Capital & Operating 179,250 81,400 71,391 92,792 (10,009) (12.3)% Other Revenues sub-total 5,746,077$ 3,297,625$ 3,116,390$ 1,638,848$ (181,235)$ (5.5)% Total Operating Revenues 75,227,747$ 48,944,651$ 53,583,588$ 52,594,892$ 4,638,937$ 9.5 % Operating Expenditures Council & Mayor 1,057,296$ 801,100$ 708,024$ 762,497$ 93,076$ 11.6 % Administration 3,578,081 2,503,300 2,494,166 1,607,681 9,134 0.4 % Human Resources 1,767,704 1,298,300 1,165,246 655,167 133,054 10.2 % Municipal Court & Probation 3,074,111 744,233 666,941 1,107,248 77,293 10.4 % Finance 3,518,178 2,694,200 2,360,243 2,538,235 333,957 12.4 % City Attorney 2,894,572 2,122,900 1,748,226 1,877,968 374,674 17.6 % Community Development 5,349,088 3,982,600 3,178,358 3,028,604 804,242 20.2 % Community & Human Services (Comm Devel)1,055,484 653,400 632,686 660,205 20,714 3.2 % Jail - SCORE 4,601,000 3,450,750 3,423,825 2,894,741 26,925 0.8 % Police 30,763,024 22,444,600 21,335,656 20,626,144 1,108,944 4.9 % Public Works 4,426,341 3,273,400 2,684,001 2,798,423 589,399 18.0 % Parks, Arts & Recreation 12,626,216 9,652,800 8,094,481 9,558,340 1,558,319 16.1 % Streets 3,858,677 2,705,600 2,547,290 2,561,410 158,310 5.9 % Non-Departmental 5,540,333 3,165,933 1,279,897 1,239,164 1,886,036 59.6 % Total Operating Expenditures 84,110,105$ 59,493,116$ 52,319,041$ 51,915,829$ 7,174,075$ 12.1 % Page Ref 2020 2020 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 2 Quarterly Financial Report Through September 2020 3 Executive Summary This report provides an overview of the City’s overall financial position for the fiscal period ending September 30, 2020, reflecting financial data available as of October 20, 2020. General Fund: Due to the COVID-19 pandemic, many General Fund revenues declined due to the Governor’s “Stay Home, Stay Healthy” order that effectively closed all non-essential businesses earlier this year. While the county has since progressed to phase 2 reopening, revenues are still being unfavorably impacted compared to what would be considered normal activity. The revenue categories that are primarily impacted by the pandemic include sales taxes, admission tax, gambling tax, business licenses, culture and recreation, and rents and leases. In light of the economic impact that COVID-19 has had, the City recently adjusted some General Fund revenue budgets downward to reflect new expectations. At the same time, the City also implemented expenditure reductions with the goal of closing the expected revenue gap. Anticipated expenditure reductions are reflected in this financial report in both the budget and actuals. Through September 2020, General Fund revenues totaled $53.6 million and were $4.6 million, or 9.5% favorable to the revised budget expectations. The City estimates that the annual revenue loss to the General Fund in 2020 due to COVID-19 will be between $6.0 million and $9.0 million in 2020, which partially depends on when Pierce and King counties are allowed to progress through the remaining reopening phases set forth by the Governor. To help close the revenue gap, the City implemented the following policy changes earlier this year; together, these changes account for year-to-date incremental revenue to the General Fund in the amount of $2.0 million. Policy Changes due to COVID-19: • Divert interest earnings for most funds to the General Fund for 2020 (retroactive to April). The year-to-date incremental revenue to the General Fund as a result of this policy change is an additional $216,000 in revenue. • No longer allocating a portion of Motor Vehicle Fuel Tax (MVFT) monies to the Arterial Street Fund for 2020 and, therefore, that portion of revenues from the state will stay in the General Fund. The funding source in 2020 for the Arterial Street Fund is being replaced with real estate excise tax (REET) monies. This policy change was made retroactive to January, and the year-to-date incremental revenue to the General Fund as a result of this policy change is $321,000. • The City will retain all utility tax revenues entirely in the General Fund for 2020 and replacing this funding source for the Arterial Street Preservation Fund with REET funds. This policy change, which was also made retroactive to January, has resulted in year-to date incremental revenue to the General Fund of $1.5 million. Notable variances to budget through September 2020 include: • Retail Sales Tax: The sales tax report through September 2020 (which is provided as an attachment to this report) reflects amounts remitted to the City of Auburn based on sales from November 2019 through July 2020. Revenue losses compared to the year prior were seen in several categories, most notably in the manufacturing, automotive, and services sectors. While sales tax revenues are down in some areas, there are some categories that exceeded expectations, most notably the construction category. Through Q3-2020, sales tax revenues are down 1.1%, or $147,000, compared to the same period last year. [pages 8-9] 3 Quarterly Financial Report Through September 2020 4 • Building permit revenues collected through September 2020 totaled $686,000 and were $229,000, or 50.2%, above budget and 9.4% higher than revenues collected through Q3-2019. While the “Stay Home, Stay Healthy” order earlier this year did impact building permit revenues, there were four significant commercial projects in the City that contributed to higher than anticipated revenues this year. The total number of building permits issued year-to-date totaled 371, which is 8.8% less than the number of permits issued through Q3-2019. [page 14] • Culture and recreation revenues collected through September totaled $1.3 million and were $893,000 less than what was collected through September 2019. These reduced revenues are a direct result of the COVID-19 pandemic whereby the City of Auburn essentially closed the majority of all Parks, Arts and Recreation activities and services effective March 6, 2020. While some activities have since resumed, these are at a reduced capacity, and other activities continue to be on hold, delayed, or canceled to comply with the Governor’s guidance for Washington’s Safe Start phased reopening plan. [pages 16, 18] • Rents and leases revenues to date totaled $386,000 and were $41,000, or 9.6%, below budget expectations and $407,000, or 51.3%, less than revenues collected through Q3- 2019. The majority of these revenues are derived from Parks, Arts and Recreation Department rentals such as golf carts, athletic fields, campsites and shelters, and meeting and event facilities – all of which were halted in March due to COVID-19 restrictions and had limited openings started in May. [page 20] 2020 General Fund expenditures through September 2020 totaled $52.3 million compared to a revised year-to-date budget of $59.5 million; this represents a $7.2 million, or 12.1%, favorable variance to budget. Due to the significant impact the COVID-19 pandemic has already had and will continue to have on the General Fund, the City implemented several mitigation strategies to close the gap for the projected revenue shortfall. These strategies included employee furloughs, hiring freezes on sixteen positions, voluntary early retirements, temporary benefit cuts, temporary lay-offs of temporary and seasonal employees, participation in the Shared Work Program for employees whose workload has slowed down, and specific departmental expenditure reductions in the areas of travel, training, and some service contracts. These expenditure cuts are reflected in the expenditures reported here. The majority of the expenditure savings through September was seen in salary costs, which were underspent by $3.1 million, and in benefit costs, which were underspent by $2.9 million. Savings in salaries were primarily related to position vacancies resulting, in large part, from the hiring freezes, layoffs, and participation in the Shared Work Program as noted above. Savings in benefit expenditures were due in part to position vacancies and also to the fact that the actual cost of providing medical benefits in 2020 were less than budgeted. 4 Quarterly Financial Report Through September 2020 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, as well as local 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. Variances in budget and actuals between years are generally due to the schedule and level of activity on projects in the fund, and the timing of grant reimbursements and other funding. Through September 2020, Arterial Street Fund revenues totaled $1.4 million as compared to collections of $1.5 million in the same period of 2019, while expenditures totaled $1.3 million as compared to expenditures of $1.6 million in 2019. [pages 23–24] Local Street Fund revenues of $1.5 million are in line with budget expectations and only $48,000 below collections through September 2019. Expenditures through September were $1.0 million as compared with $0.8 million in 2019. [pages 25–26] Lastly, Arterial Street Preservation Fund revenues totaled $2.2 million through September 2020, approximately $95,000 higher than year-to-date through September 2019. Expenditures totaled $1.2 million versus $2.4 million last year. [pages 27–28] YTD Budget $ 48.9M YTD Budget $ 59.5M YTD Actuals $ 53.6M YTD Actuals $ 52.3M $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 Revenues Expenditures $ Millions General Fund Revenues vs. Expenditures Through September 2020 5 Quarterly Financial Report Through September 2020 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. Additionally, a new utility fee schedule also went into effect in January 2019. The Water Fund ended September 2020 with operating income of $4.5 million year-to-date, compared to $5.2 million last year. [page 30] The Sewer Fund finished September 2020 with operating income of $1.5 million year-to-date versus $2.2 million in 2019. This variance is primarily due to a one-time refund from the Department of Revenue last year, as well as lower commercial volumes. [page 31] Through September 2020 the Stormwater Fund had year-to-date operating income of $2.6 million compared to $2.3 million in 2019, largely due to the rate increase implemented in January. [page 31] The Solid Waste Fund finished September 2020 with year-to-date operating income of $200,000 compared to $300,000 in the same period last year. [pages 31-32] The Airport Fund experienced operating income of $405,000 year-to-date through September 2020, compared to $331,000 through September 2019. This variance is largely attributable to the purchase and sale of aviation fuel, an activity that was not previously directly managed by the City. [page 33] The Cemetery Fund had year-to-date operating income of $153,000 through September, compared to $146,000 through September 2019. [page 33] 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 period ending September 30, 2020. [page 34] 6 Quarterly Financial Report Through September 2020 7 General Fund Revenues The combined total of property, sales/use, utility, gambling, and admissions taxes provides over 70% of all resources supporting general governmental activities. The following section provides additional information on these sources. Property Tax collections through September 2020 totaled $12.4 million and compare to a budget of $12.1 million. 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. The COVID-19 pandemic is expected to have minimal, if any, impact to property tax revenues. $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 2020 Budget 2020 YTD Actual 2019 Actual $17.2 $17.9 $20.8 $21.4 $21.9 $12.4 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 2015 2016 2017 2018 2019 2020 YTDMillionsProperty Tax Revenue Actuals 7 Quarterly Financial Report Through September 2020 8 Retail sales tax collections through September 2020 reflect taxes remitted to the City of Auburn based on sales from November 2019 through July 2020, which includes approximately one and a half months where all non-essential business were closed as part of the “Stay Home, Stay Healthy” order. In Budget Amendment No. 7 (approved in September), the budget for retail sales tax revenues for 2020 was reduced by $3.3 million to reflect revised expectations. As a result of COVID-related business shut-downs, sales tax revenues collected in Q2-2020 were 19.1% lower than sales taxes collected during the same period in 2019. Conversely, sales tax revenues collected in Q3-2020 were 8.1% higher than sales tax revenue collected during the same period last year, with the most notable increases seen in the construction and automotive categories. $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 2020 Budget 2020 YTD Actual 2019 Actual 8 Quarterly Financial Report Through September 2020 9 Note: The increase in sales tax revenue from 2018 to 2019 was primarily due to a policy change whereby sales tax on construction revenue stays in the General Fund starting in 2019. Of the year-over-year increase in sales tax revenue depicted in the graphic above from 2018 to 2019, $2.2 million of the $2.9 million increase was due to this policy change. The following table breaks out the City’s retail sales taxes by major business sector. Citywide retail sales tax revenue collected through Q3-2020 were $194,000, or 1.4%, less than revenues collected through Q3-2019. While most business sectors generated less revenue compared to last year, the construction and transportation & warehousing sectors generated higher revenues than the same period in 2019. $14.5 $14.6 $14.9 $15.9 $18.8 $13.7 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 $22.0 2015 2016 2017 2018 2019 2020 YTDMillionsRetail Sales & Use Tax Actuals 2019 2020 Component Group Actual Actual Amount Construction 1,506,735$ 2,138,487$ 631,752$ 41.9 % Manufacturing 589,753 286,376 (303,378)$ (51.4)% Transportation & Warehousing 63,946 121,106 57,160$ 89.4 % Wholesale Trade 1,133,801 986,543 (147,258)$ (13.0)% Automotive 3,037,102 2,746,612 (290,491)$ (9.6)% Retail Trade 4,043,320 4,039,685 (3,635)$ (0.1)% Services 3,305,574 3,136,003 (169,572)$ (5.1)% Miscellaneous 192,684 223,631 30,947$ 16.1 % YTD Total 13,872,916$ 13,678,441$ (194,475)$ (1.4)% Comparison of Retail Sales Tax Collections by Group Through September Change from 2019 Percentage 9 Quarterly Financial Report Through September 2020 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). Due to the fiscal impact of the COVID-19 pandemic, the City of Auburn implemented a policy change regarding how these utility tax revenues are recorded. Historically, these revenues were recorded in both the General Fund and the Arterial Street Preservation Fund. Effective in 2020 only and retroactive to January, the City is retaining 100% of the utility tax revenues in the General Fund. This will result in an additional $1.8 million in revenues in the General Fund by year-end to fund ongoing operations. Through Q3-2020, this policy change has resulted in an additional $1.5 million in utility tax revenue recorded to the General Fund. The table below demonstrates the various utility tax revenues and show year-to-date actuals compared to budget. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsUtility Tax 2020 Budget 2020 YTD Actual 2019 Actual 2019 2020 2020 Utility Tax Type YTD Actual YTD Budget YTD Actual Amount Amount City Interfund Utility Taxes 3,026,859$ 3,384,100$ 3,413,691$ $ 386,832 12.8 % $ 29,591 0.9 % Electric 2,753,414 3,135,600 3,242,922 489,509 17.8 %107,322 3.4 % Natural Gas 818,958 1,067,100 1,114,296 295,338 36.1 %47,196 4.4 % Telephone 735,332 752,700 831,771 96,439 13.1 %79,071 10.5 % Solid Waste (external)109,116 115,920 166,230 57,114 52.3 %50,310 43.4 % YTD Total 7,443,679$ 8,455,420$ 8,768,910$ $ 1,325,231 17.8 % $ 313,490 3.7 % Through September 2020 Utility Tax by Type 2020 vs. 2019 Actual 2020 vs. Budget Percentage Percentage 10 Quarterly Financial Report Through September 2020 11 An admission tax of 5.0% is placed on charges for general admission, season tickets, cover charges, parking charges, etc. Admission tax revenue collected through Q3-2020 totaled $198,000 and compares to $334,000 collected through the same period last year. While there are only a handful of businesses that qualify to remit these taxes to the City, 75% of the tax revenue in this category is typically generated from Auburn Regal Theater located at the Outlet Collection mall. Due to the Governor’s orders relating to COVID-19, all of these revenues ceased during the shutdown, will continue to be significantly lower than normal until group activities are permitted, and may be limited for some period thereafter. Since the initial shutdown in March, the Governor has since allowed golf courses to reopen within certain limitations and the Auburn Golf Course reopened on May 5th. Revenues in this category collected since May are almost exclusively from admissions tax collected from the golf course. $9.7 $10.0 $10.2 $9.9 $9.6 $8.8 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 2015 2016 2017 2018 2019 2020 YTDMillionsUtility Tax Revenues Actuals $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsAdmission Tax 2020 Budget 2020 YTD Actual 2019 Actual 11 Quarterly Financial Report Through September 2020 12 Gambling tax applies to all card games, punch board games, pull tabs, bingo games, raffles and amusement games played within City limits. Due to the Governor’s orders relating to COVID-19, these entertainment style activities are mostly on hold. Therefore, it is expected the revenues generated from gambling taxes this year will be significantly lower than normal. As depicted in the graphic below, revenues collected through September totaled $75,000 which was $202,000 less than collections through Q3-2019. The City charges an annual fee of $100 for a business license for each business that is located within the City. The City typically sends out the renewals for the following year around December of each year. Therefore, the majority of these revenues are collected in December for the following year or January in the current year. Through September 2020 these revenues totaled $148,000 and are $12,000, or 7.6% unfavorable to budget. It is anticipated that due to COVID- 19, there will be businesses that do not remit their renewals this year. $0.0 $100.0 $200.0 $300.0 $400.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsGambling Tax 2020 Budget 2020 YTD Actual 2019 Actual 12 Quarterly Financial Report Through September 2020 13 $0 $50 $100 $150 $200 $250 $300 $350 $400 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsBusiness Licenses 2020 Budget 2020 YTD Actual 2019 Actual $282 $225 $163 $353 $336 $148 $0 $50 $100 $150 $200 $250 $300 $350 $400 2015 2016 2017 2018 2019 2020 YTDThousandsBusiness License Revenues Actuals 13 Quarterly Financial Report Through September 2020 14 Building permit revenues collected through September 2020 totaled $686,000 and were $59,000, or 9.4%, higher than revenues collected through the same period last year. While these revenues were temporarily affected by COVID-19 due to the fact that construction was temporarily halted, there were several large projects that contributed to the higher revenues collected. Some of these projects include the replacement of Pioneer Elementary School, Auburn Elementary School #16, and the Bridge Point Warehouse. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsBuilding Permits 2020 Budget 2020 YTD Actual 2019 Actual $1.2 $2.0 $1.2 $0.9 $1.2 $0.7 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2015 2016 2017 2018 2019 2020 YTDMillionsBuilding Permits Actuals 14 Quarterly Financial Report Through September 2020 15 Intergovernmental revenues include grants (direct and indirect federal, state and local), revenue from the Muckleshoot Indian Tribe (MIT) compact as well as state shared revenues. Collections through Q3-2020 totaled $4.5 million and were $577,000 above budget expectations. The majority of the favorable variance to budget was seen in the contributions from Muckleshoot Casino for services related to police calls for service, court related prosecutions, and street maintenance. Due to COVID-19 and the “Stay Home, Stay Healthy” order, many people have drastically reduced their driving patterns therefore fuel consumption has and will continue to be low compared to historical usage. To mitigate the revenue loss, the City of Auburn implemented a policy change for 2020 (retroactive to January) where motor vehicle fuel tax revenues (MVFT) that have historically benefitted the Arterial Street Fund are being retained in the General Fund. Through Q3-2020, the policy change has resulted in an additional $321,000 in MVFT monies in the General Fund. Streamlined Sales Tax (SST) revenue is a state shared revenue that was granted in 2008 as a way for cities to offset the negative fiscal impact of the Streamlined Sales and Use Tax Agreement, also known as ‘destination sourcing’. The City of Auburn had expected to receive these monies through Q2-2021. In an effort for the state to close the revenue gap due to COVID- 19, in April 2020, the state announced it will discontinue any SST distributions after Q2-2020. This loss of revenue represents a loss of $460,000 to the City of Auburn in 2020. The City of Auburn received the final remittance from the state in June 2020, which totaled $250,000. 2019 2020 2020 Revenue YTD Actual YTD Budget YTD Actual Amount Amount Federal Grants 173,444$ 247,200$ 272,782$ $ 99,338 57.3 % $ 25,582 10.3 % State Grants 148,776 102,500 140,207 (8,570) (5.8)%37,707 36.8 % Interlocal Grants 38,888 171,900 205,373 166,484 0.0 %33,473 19.5 % Muckleshoot Casino Services 908,419 669,967 1,020,419 112,000 12.3 %350,452 52.3 % State Shared Revenues: Streamlined Sales Tax 1,304,831 490,000 494,830 (810,002) (62.1)%4,830 1.0 % Motor Vehicle Fuel Tax 867,456 1,059,000 1,051,874 184,417 21.3 %(7,126) (0.7)% Criminal Justice - High Crime 169,308 150,000 168,992 (316) (0.2)%18,992 12.7 % Criminal Justice - Population 17,958 17,000 18,997 1,039 5.8 %11.7 % Criminal Justice - Special Prog.64,666 62,500 68,053 3,388 5.2 %5,553 8.9 % Marijuana Excise Tax 135,977 101,250 130,716 (5,261) (3.9)%29,466 29.1 % State DUI 8,548 8,700 8,619 72 0.8 %(81) (0.9)% Fire Insurance Tax 80,386 78,900 85,819 5,433 6.8 %6,919 8.8 % Liquor Excise 322,324 295,243 371,283 48,959 15.2 %76,040 25.8 % Liquor Profit 492,877 499,125 491,980 (897) (0.2)%(7,145) (1.4)% Total State Shared:3,464,332 2,761,718 2,891,163 (573,168)(16.5)%129,445 4.7 % YTD Total 4,733,859$ 3,953,285$ 4,529,943$ (203,916)$ (4.3)%576,659$ 14.6 % Through September 2020 Intergovernmental Revenues (Grants, Entitlements & Services) 2020 vs. 2019 Actual 2020 vs. Budget % Change % Change 15 Quarterly Financial Report Through September 2020 16 Charges for Services consist of general governmental service charges, public safety charges, development service fees, and culture and recreation fees. Total charges for services collected through September 2020 totaled $5.0 million and were $525,000, or 11.7%, favorable to budget. The General Government revenue category primarily includes the interfund assessment for the salary and benefit costs for support departments (Finance, Human Resources and the Legal Department). Salary and benefit costs for these support departments are charged to the respective General Fund home department and the offsetting revenues for that support personnel is recouped from other funds into the General Fund. $5.3 $5.7 $6.1 $6.3 $6.0 $4.5 $0 $1 $2 $3 $4 $5 $6 $7 $8 2015 2016 2017 2018 2019 2020 YTDMillionsIntergovernmental Revenues (Grants, Entitlements & Services) Actuals 2019 2020 2020 Revenue YTD Actual YTD Budget YTD Actual Amount Amount General Government 1,944,889$ 2,032,510$ 2,234,136$ $ 289,247 14.9 % $ 201,626 9.9 % Public Safety 847,021 723,000 704,263 (142,758) (16.9)%(18,737)(2.6)% Development Services 850,551 475,100 754,150 (96,400) (11.3)%279,050 58.7 % Culture & Recreation 2,224,932 1,269,200 1,332,318 (892,614) (40.1)%63,118 5.0 % YTD Total 5,867,392$ 4,499,810$ 5,024,867$ (842,526)$ (14.4)% $ 525,057 11.7 % Through September 2020 Charges for Services by Type 2020 vs. 2019 Actual 2020 vs. Budget Percentage Percentage 16 Quarterly Financial Report Through September 2020 17 Public safety revenues mostly consist of revenues for law enforcement services. Law enforcement services include revenues received for extra duty security services, whereby police officers are contracted for and reimbursement is made by the hiring agency. This category 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. Law enforcement service revenues collected through September totaled $704,000 and were $19,000 or 2.6% unfavorable to budget expectations. It is anticipated that this revenue will continue to be lower than collections last year as some businesses who utilize these services will not require security services due to business closures. Development services fee collections consist primarily of plan check fees, facility extension charges, and zoning and subdivision fees. Through Q3-2020, development service fees totaled $754,000, and were $279,000 favorable to budget expectations. The favorable variance to budget was seen primarily in facility extension charges, which generated $342,000 in revenue through Q3-2020. Part of this favorable variance to budget was due to a sizable change in the fee schedule for this service. Plan check revenues collected year-to-date totaled $318,000 and were approximately $163,000 less than the amount collected through the same period last year. Plan check revenues to date include numerous commercial and residential projects including Auburn Elementary School #16, the replacement of Pioneer Elementary School, Legacy Plaza, Copper Gate Apartments, projects at Boeing, as well as single family residential projects including the Pulte Homes development. $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 2020 Budget 2020 YTD Actual 2019 Actual 17 Quarterly Financial Report Through September 2020 18 The majority of culture and recreation revenues is derived from greens fees and pro shop sales at the Auburn Golf Course, recreational classes, ticket sales at the Auburn Avenue Theater, senior programs and special events. Due to COVID-19, all of these activities were suspended in March. Effective May 5th, the Auburn Golf Course reopened with restrictions but there are numerous other culture and recreation activities that are still suspended or have been significantly modified. Therefore, culture and recreation revenues collected through September 2020 totaled $1.3 million as compared to $2.2 million collected through the same period last year. 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 Q3-2020 totaled $476,000 compared to a budget of $498,000 and were 4.6% below budget expectations. $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 $2.8 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsCulture & Recreation 2020 Budget 2020 YTD Actual 2019 Actual 2019 2020 2020 Month YTD Actual YTD Budget YTD Actual Amount Amount Civil Penalties 64,560$ 11,250$ 21,857$ $ (42,703)(66.1)% $ 10,607 94.3 % Civil Infraction Penalties 328,685 275,900 205,250 (123,435) (37.6)%(70,650) (25.6)% Redflex Photo Enforcement 2,672 0 1,182 (1,490) (55.8)%1,182 N/A % Parking Infractions 96,758 53,500 54,982 (41,776) (43.2)%1,482 2.8 % Criminal Traffic Misdemeanor 27,982 42,800 15,530 (12,453) (44.5)%(27,270) (63.7)% Criminal Non-Traffic Fines 46,259 33,600 17,773 (28,486) (61.6)%(15,827) (47.1)% Criminal Costs 14,966 39,300 14,725 (241) (1.6)%(24,575) (62.5)% Non-Court Fines & Penalties 60,187 41,900 144,220 84,034 139.6 %102,320 244.2 % YTD Total 642,069$ 498,250$ 475,518$ $ (166,550)(25.9)% $ (22,732)(4.6)% Through September 2020 Fines & Penalties by Type 2020 vs. 2019 Actual 2020 vs. Budget Percentage Percentage 18 Quarterly Financial Report Through September 2020 19 $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 2020 Budget 2020 YTD Actual 2019 Actual $0.9 $0.9 $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 2015 2016 2017 2018 2019 2020 YTDMillionsFines & Penalties Actuals 19 Quarterly Financial Report Through September 2020 20 Miscellaneous revenues consist of investment earnings, income from facility rentals, revenue collected on golf cart rentals at the Auburn Golf Course, contributions and donations, and other income including the quarterly purchasing card (P-card) rebate monies. Revenues collected through Q3-2020 in this category totaled $963,000 and were under budget expectations by $173,000, or 15.2%. The majority of the unfavorable variance to budget was in the interest and investments category. As noted on page 3 of this report, the City has implemented a temporary policy change where the majority of interest earnings for most funds are being diverted to the General Fund (retroactive to April 2020). The year-to-date incremental revenue to the General Fund as a result of this policy change is an additional $216,000 in revenue. While the budget has been increased to reflect this policy change, the unfavorable variance to budget is primarily due to the drastic decline in the State Investment Pool Interest rate, which started out at the beginning of 2020 at 1.7%, but which has declined each month and is currently at 0.2%. The rents and leases revenue category is primarily rental revenue generated from campsites and park shelters, rentals of the athletic fields, and rentals of meeting and event rooms. Due to COVID-19, facility rental revenue abruptly halted in March as the facilities closed. The rents and leases category also includes revenue generated from golf cart rentals at the Auburn Golf Course; due to the “Stay Home, Stay Healthy” order, the golf course was closed from March 25th through May 4th which also contributed to the revenue loss in this category. 2019 2020 2020 Month YTD Actual YTD Budget YTD Actual Amount Amount Interest & Investments 291,861$ 493,680$ 377,313$ 85,452$ 29.3 %(116,367)$ (23.6)% Rents & Leases 793,273 426,800 386,007 (407,266)(51.3)%(40,793) (9.6)% Contributions & Donations 26,539 37,000 28,876 2,336 8.8 %(8,124) (22.0)% Other Miscellaneous Revenue 330,377 179,100 171,276 (159,101)(48.2)%(7,824) (4.4)% YTD Total 1,442,050$ 1,136,580$ 963,472$ (478,578)$ (33.2)%(173,108)$ (15.2)% Miscellaneous Revenues by Type Through September 2020 2020 vs. 2019 2020 vs. Budget Percentage Percentage 20 Quarterly Financial Report Through September 2020 21 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 September 2020 totaled $2.8 million, exceeding budget expectations by $925,000. Sales activity through this reporting period includes the sale of several warehouses, an office complex, retail businesses, multi-family complexes, single family homes, and vacant land. 2019 2020 2020 Month Actual Budget Actual Amount Amount Jan 387,084$ 208,500$ 214,936$ (172,147)$ (44.5)%6,436$ 3.1 % Feb 208,857 208,500 455,986 247,129 118.3 %247,486 118.7 % Mar 232,233 208,500 214,029 (18,204) (7.8)%5,529 2.7 % Apr 318,475 208,500 273,949 (44,526) (14.0)%65,449 31.4 % May 375,246 208,500 245,815 (129,431) (34.5)%37,315 17.9 % Jun 481,934 208,500 288,495 (193,440) (40.1)%79,995 38.4 % Jul 352,378 208,500 392,753 40,375 11.5 %184,253 88.4 % Aug 452,068 208,500 368,252 (83,815) (18.5)%159,752 76.6 % Sep 400,173 208,500 346,819 (53,354) (13.3)%138,319 66.3 % Oct 414,124 208,500 #N/A #N/A #N/A %#N/A #N/A % Nov 1,046,103 208,500 #N/A #N/A #N/A %#N/A #N/A % Dec 553,301 208,900 #N/A #N/A #N/A %#N/A #N/A % YTD Total 3,208,447$ 1,876,500$ 2,801,035$ (407,413)$ (12.7)%924,535$ 49.3 % Real Estate Excise Tax Revenues September 2020 2020 vs. 2019 2020 vs. Budget Percentage Percentage $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 $5.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsReal Estate Excise Tax 2020 Budget 2020 YTD Actual 2019 Actual 21 Quarterly Financial Report Through September 2020 22 $4.6 $4.3 $3.6 $3.8 $5.2 $2.8 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2015 2016 2017 2018 2019 2020 YTDMillionsReal Estate Excise Tax Revenues Actuals 22 Quarterly Financial Report Through September 2020 23 Street Funds This section provides a financial overview of the City’s three street funds for the period ending September 30, 2020. 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, 2020 there were 25 separate street projects budgeted in this fund. Through September 2020, revenues collected totaled $1.4 million as compared to collections of $1.5 million through September last year. Total expenditures through September were $1.3 million as compared to $1.6 expended through September 2019. Variances in revenues and expenditures are largely due to the timing of capital expenditures and any subsequent reimbursement via grants and/or operating transfers. Expenditure timing is generally determined by the current phase of each individual capital project; expenditures tend to increase as projects move from design phase into construction. Fund 102 - Arterial Street 2019 Summary of Sources and Uses 2020 2020 YTD 2020 YTD 2019 YTD Report Period: September 2020 Budget Budget Actual Actual Amount Revenues Federal Grants 5,535,770$ 3,787,825$ 130,624$ 492,609$ (3,657,201)$ (96.6)% State And Local Grants 730,000 510,000 - - (510,000) (100.0)% Motor Vehicle Fuel and Multimodal Taxes 197,000 143,021 83,551 457,355 (59,470) (41.6)% Developer Contributions - - - - - Miscellaneous Revenue - - 14,469 - 14,469 Operating Transfer In 3,370,194 2,358,141 1,147,876 559,429 (1,210,265) (51.3)% Investment Income 11,600 8,603 7,660 33,964 (943) (11.0)% Total Revenues 9,844,564$ 7,017,590$ 1,384,180$ 1,543,357$ (5,633,411)$ (80.3)% Expenditures Salary and Benefits 397,000$ 294,918$ 384,691$ 203,838$ (89,773)$ (30.4)% Capital Outlay 10,096,046 7,662,283 535,036 915,970 7,127,247 93.0 % Subtotal - Capital Project Expenditures 10,493,046 7,957,201 919,728 1,119,808 7,037,473 88.4 % Services and Charges 400,000 181,187 139,247 89,455 41,939 23.1 % Interfund Payments for Services 80,100 60,075 60,075 58,575 - 0.0 % Debt Service Principal and Interest 207,600 207,600 207,428 208,122 172 0.1 % Operating Transfer Out - - - 143,196 - Total Expenditures 11,180,746$ 8,406,063$ 1,326,478$ 1,619,156$ 7,079,585$ 84.2 % Net Change in Fund Balance (1,336,182)$ (1,388,472)$ 57,702$ (75,800)$ 1,446,174$ 104.2 % Beg. Fund Balance, January 2020 1,970,223$ Net Change in Fund Balance, September 2020 57,702 Ending Fund Balance, September 2020 2,027,925$ 2020 Budgeted Ending Fund Balance 634,041$ 2020 2020 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 23 Quarterly Financial Report Through September 2020 24 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 2020 portion of each project’s budget and year-to-date expenditures. Note: The Lea Hill Safe Routes to Schools project was originally programmed assuming grant funding that has not yet been received in the competitive process. $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 DecMillionsFund 102 -Capital Project Expenditures 2020 YTD Budget 2020 YTD Actual 2019 YTD Actual 2020 YTD Actual: $0.9M 2020 Budget: $10.5M 2019 YTD Actual: $1.1M Name 2020 Budget YTD Actual Remaining F Street SE Non-Motorized Improvements $2.9M $0.4M $2.5M AWS Improvements - Hemlock St SE to Poplar St SE $2.2M $0.1M $2.1M Lea Hill Safe Routes to Schools $1.4M $0.0M $1.4M All Other Projects (22 Others Budgeted)$3.9M $0.4M $3.5M Total $10.5M $0.9M $9.6M *Components may not sum to total due to rounding. Fund 102 - Arterial Street Capital Projects Status * 24 Quarterly Financial Report Through September 2020 25 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. Expenditures through September were $1.0 million and compare to expenditures of $783,000 in the same period last year. Highlighted in the table below and shown in the following graph are the fund’s total expenditures related to capital projects. Fund 103 - Local Street Fund 2019 Summary of Sources and Uses 2020 2020 YTD 2020 YTD 2019 YTD Report Period: September 2020 Budget Budget Actual Actual Amount Revenues Sales Tax on Construction -$ -$ -$ -$ -$ Operating Transfer In 1,900,000 1,462,500 1,462,500$ 1,462,500 - 0.0 % Interest Earnings - - 10,301$ 58,470 10,301 Total Revenues 1,900,000$ 1,462,500$ 1,472,801$ 1,520,970$ 10,301$ 0.7 % Expenditures Capital Salary and Benefits 162,391 116,201 98,155 57,056 18,046 15.5 % Capital Services and Charges Capital Outlay 2,950,143 1,398,842 884,929 682,281 513,914 36.7 % Subtotal - Capital Project Expenditures 3,112,534 1,515,044 983,084 739,337 531,960 35.1 % Admin Salary and Benefits - - 14,722 13,667 (14,722)$ Admin Services and Charges 700 607 361 19,066 247 40.6 % Interfund Payments for Services 15,600 11,700 11,700 11,400 - 0.0 % Operating Transfer Out - - - - - Total Expenditures 3,128,834$ 1,527,351$ 1,009,866$ 783,469$ 517,485$ 33.9 % Net Change in Fund Balance (1,228,834)$ (64,851)$ 462,935$ 737,501$ 527,786$ 813.8 % Beg. Fund Balance, January 2020 2,550,612$ Net Change in Fund Balance, September 2020 462,935 Ending Fund Balance, September 2020 3,013,547$ 2020 Budgeted Ending Fund Balance 1,321,778$ 2020 2020 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 25 Quarterly Financial Report Through September 2020 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 2020 portion of each project’s budget and year-to-date expenditures. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 103 -Capital Project Expenditures 2020 YTD Budget 2020 YTD Actual 2019 YTD Actual 2020 Budget : $3.1M 2019 YTD Actual: $0.7M 2020 YTD Actual: $1.0M Name 2020 Budget YTD Actual Remaining 2020 Local Street Reconstruction $1.6M $0.7M $0.9M 2019 Local Street Reconstruction $0.8M $0.3M $0.6M 2021 Local Street Preservation $0.7M $0.0M $0.7M All Other Projects (2 Others Budgeted)$0.0M $0.0M $0.0M Total $3.1M $1.0M $2.1M *Components may not sum to total due to rounding. Fund 103 - Local Street Capital Projects Status* 26 Quarterly Financial Report Through September 2020 27 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. In 2020, due to COVID-19 impacts, the funding source will be from REET 2 revenues and the 1.0% utility tax will be retained in the General Fund. Major projects budgeted within the Arterial Street Preservation Fund in 2020 include Auburn Way North Preservation (Phase 2), Auburn Way North Preservation (Phase 3) and 2020 Arterial Street Preservation. Through September 2020 revenues totaled $2.2 million, which is approximately $95,000 higher 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 September were $1.2 million as compared to $2.4 million through last September. Historically, the majority of this fund’s expenditures occur in the second half of each year due to the weather sensitivity of pavement construction (this work needs to be done primarily in the summer and early fall). Highlighted in the table below and shown in the following graph are the fund’s total expenditures related to capital projects. Fund 105 - Arterial Street Preservation 2019 Summary of Sources and Uses 2020 2020 YTD 2020 YTD 2019 YTD Report Period: September 2020 Budget Budget Actual Actual Amount Revenues City Utility Tax 66,900$ 50,103$ -$ 504,476$ (50,103)$ (100.0)% Electric Utility Tax 69,900 53,788 - 550,683 (53,788) (100.0)% Natural Gas Utility Tax 19,800 17,538 - 163,792 (17,538) (100.0)% Cable TV Tax 18,800 14,106 - 146,294 (14,106) (100.0)% Telephone Utility Tax 16,100 12,316 - 147,066 (12,316) (100.0)% Garbage Utility Tax (External Haulers)2,200 1,650 - 18,186 (1,650) (100.0)% Grants 3,880,589 1,592,461 348,331 84,617 (1,244,130) (78.1)% Developer Mitigation Fees - - - - - Operating Transfer In 2,618,020 1,061,263 1,891,551 500,338 830,288 78.2 % Interest Earnings 13,000 9,750 7,297 36,365 (2,453) (25.2)% Total Revenues 6,705,309$ 2,812,974$ 2,247,179$ 2,151,818$ (565,795)$ (20.1)% Expenditures Salary and Benefits 306,000$ 230,905$ 412,922$ 438,878$ (182,017)$ (78.8)% Capital Outlay 6,903,224 4,154,925 772,074 1,894,227 3,382,851 81.4 % Subtotal - Capital Project Expenditures 7,209,224 4,385,830 1,184,996 2,333,106 3,200,834 73.0 % Supplies - - - - - Services and Charges - - 985 18,529 (985) Operating Transfer Out - - - - - Total Expenditures 7,209,224$ 4,385,830$ 1,185,980$ 2,351,635$ 3,199,850$ 73.0 % Net Change in Fund Balance (503,915)$ (1,572,856)$ 1,061,199$ (199,817)$ 2,634,054$ 167.5 % Beg. Fund Balance, January 2020 2,041,919$ Net Change in Fund Balance, September 2020 1,061,199 Ending Fund Balance, September 2020 3,103,118$ 2020 Budgeted Ending Fund Balance 1,538,004$ 2020 2020 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 27 Quarterly Financial Report Through September 2020 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 2020 portion of each project’s budget and year-to-date expenditures. $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 105 -Capital Project Expenditures 2020 YTD Budget 2020 YTD Actual 2019 YTD Actual 2020 Budget: $7.2M 2019 YTD Actual: $2.3M 2020 YTD Actual: $1.2M Name 2020 Budget YTD Actual Remaining AWN Preservation Phase 3 $1.8M $0.4M $1.5M AWN Preservation Phase 2 $1.5M $0.2M $1.3M 2020 Arterial Street Preservation $0.9M $0.1M $0.8M All Other Projects (4 Others Budgeted)$3.0M $0.6M $2.4M Total $7.2M $1.2M $6.0M *Components may not sum to total due to rounding. Capital Projects Status* Fund 105 - Arterial Street Preservation 28 Quarterly Financial Report Through September 2020 29 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. The City received $1.7 million in revenues in through September 2020, which exceeds total revenue budgeted for the year. With the exception of interest and investment income, each revenue category has exceeded its annual budgeted amount. Expenditures were significantly below budget due to the timing of capital projects funded by mitigation and/or impact fee revenues. Fund 124 - Mitigation Fees Summary of Sources and Uses Report Period Through:Ending Ending September 2020 Fund Balance Fund Balance Transportation Impact Fees 800,000$ 2,952,194$ 5,541,320$ 1,193,203$ 724,876$ 8,161,840$ Traffic Migitation Fees - - 123,687 13,622 - 137,309 Fire Impact Fees 100,000 75,000 473,889 121,545 - 570,434 Fire Mitigation Fees - - 81 - - 81 Parks Impact Fees 200,000 2,121,728 3,382,966 206,500 220,458 5,290,736 Parks Mitigation Fees - 300,000 49,371 129,591 300,000 178,962 School Impact Admin Fees 2,000 - 86,251 3,160 - 87,411 Wetland Mitigation Fees - 5,000 67,581 - - 72,581 Interest and Investment Income 204,700 - 204,700 57,118 - 57,118 Fees in Lieu of Improvements - - 27,020 - - 27,020 Operating Transfers-In - - - - - - Total 1,306,700$ 5,453,922$ 9,956,866$ 1,724,739$ 1,245,334$ 14,583,494$ Beginning Fund Balance, January 2020 14,104,088$ Net Change in Fund Balance, September 2020 479,406 Ending Fund Balance, September 2020 14,583,494$ 2020 Budgeted Ending Fund Balance 9,956,866$ YTD ACTUALSBUDGET Revenues ExpendituresRevenuesExpenditures 29 Quarterly Financial Report Through September 2020 30 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 September the Water Utility had operating income of $4.5 million as compared to $5.2 million through September 2019. Total Water Fund operating revenues were $657,000 lower than 2019; the majority of this variance is due to weaker performance in water sales. Increases in residential sales revenue were more than offset by decreases in most other categories, particularly commercial, irrigation and manufacturing. Also contributing to the reduced operating income is a decrease in interest earnings from 2019 to 2020. Operating expenditures in 2020 were materially the same as the same period in 2019. Water sales by volume through September totaled 2.2 million hundred cubic feet (ccf) as compared to 2.4 million ccf in 2019, a decrease of 7.7%. Consumption has been lower each month in 2020 compared to 2019 with the exception of the March and September billings for the prior months’ consumption. Total consumption decreased across all non-residential categories, resulting in the lowest YTD consumption in a five-year period. This is in line with a trend of decreased year-over-year consumption on a per account basis due largely to conservation efforts and appliance efficiency improvements, which are anticipated in the Utilities Comprehensive Plan. COVID-19 mitigation efforts contributed to the decrease in commercial and manufacturing consumption, as many businesses were required to close or operate at reduced capacity. 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 $2,000 CCFThousandsWater Revenues vs Water Sold 2020 vs 2019 2019 Water Sales ($) 2020 Water Sales ($) 2019 Water Sold (ccf) 2020 Water Sold (ccf) 30 Quarterly Financial Report Through September 2020 31 Through September, the Sewer Utility finished with operating income of $1.5 million as compared to $2.2 million through September 2019. Last year the fund saw a one-time $203,000 refund from the Department of Revenue for overpayment of excise tax that significantly increased YTD revenues. Consumption by volume through September 2020 is down 11.6% from 2019 due to reductions in commercial consumption, which was exacerbated by COVID-19 mitigation efforts. This resulted in a decrease of $197,000 in sewer service revenue. Operating expenditures in the Sewer Utility were above the same period in 2019 due to the timing of intergovernmental payments and increases in interfund allocations. Through September, the Stormwater Utility had operating income of $2.6 million compared with $2.3 million through September 2019. Operating revenues were up $130,000 compared to 2019 mainly due to charges for City storm service. As most Stormwater Utility charges are flat rate, COVID-19 has not had a significant effect on service revenue. Operating expenditures in the Stormwater Utility were down $179,000 from 2019, contributing to the higher operating income noted above. This variance is mainly due to the timing of certain intergovernmental expenditures. Through September 2020 the Solid Waste Utility Fund had $11.4 million in operating revenues, compared to $11.2 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. Through September 2020, Waste Management serviced 15,532 customers (79% of customers) and Republic Services serviced 4,183 customers (21% of customers). The current mix of solid waste customer account types is: • 89.8% Residential • 7.8% Commercial • 2.4% 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 September 2020, the total diversion rate was 30.7%, which represents a total of 15,400 tons of waste that was diverted from landfills. 31 Quarterly Financial Report Through September 2020 32 2020 Tons Collected and Diversion Rates Of the total tonnage collected through September, 37% was from residential customers, 16% from multifamily customers, and 47% from commercial customers, as shown in the following graph: Garbage- 8,878 tons (47.8%) Yard Waste- 6,528 tons (35.2%) Recycling- 3,156 tons (17%) September 2020 Residential Waste Stream Garbage Yard Waste Recycling Garbage - 6,254 tons (78.2%) Yard Waste- 537 tons (6.7%) Recycling- 1,207 tons (15.1%) September 2020 Multifamily Waste Stream Garbage Yard Waste Total: 7,999 tons collected Diversion Rate: 21.8% Garbage- 19,763 tons (83.1%) Yard Waste- 139 tons (0.6%) Recycling- 3,869 tons (16.3%) September 2020 Commercial Waste Stream Garbage Yard Waste Recycling Total: 23,771 tons collected Diversion Rate: 16.9% Garbage - 34,895 tons (69.3%) Yard Waste- 7,204 tons (14.3%) Recycling- 8,232 tons (16.4%) September 2020 Total Waste Stream Garbage Yard Waste Recycling Total: 50,331 tons collected Diversion Rate: 30.7% Total: 18,562 tons collected Diversion Rate: 52.2% 5,436 4,824 5,205 5,506 5,858 6,170 6,161 5,447 5,724 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20TonnageSolid Waste Tonnage by Customer Type Residential Multifamily Commercial 32 Quarterly Financial Report Through September 2020 33 In January 2019, the Auburn Municipal Airport transitioned from contracted management services through a third-party management company, Airport Management Group (AMG), to management of the Airport by City staff. Through September 2020, the Airport Fund had operating income of $405,000 as compared with operating income of $331,000 through September 2019. Operating revenues in the Airport Fund were $20,000 more than the same period last year, largely due to increased revenue for property leases and tie down and hangar rent. Operating expenditures in the Airport Fund were $54,000 less than the same period last year. A large portion of this decrease is due to the purchase of aviation fuel for resale in 2019; fuel purchases in 2020 have been significantly lower. The remaining variance consists largely of payroll expenditures, which have decreased due to a vacant position at the Airport. Through September 2020, the Cemetery Fund experienced operating income of $153,000 as compared with an operating income of $146,000 through September 2019. Total sales revenue is down $9,000, with significantly less revenues occurring in March and May of 2020 than the same period in 2019. Overall, operating revenues are down by $21,000, or 1.9% while operating expenditures are down $29,000 or 3.0% from last year due largely to lower expenditures for inventory purchases and repairs and maintenance. $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 ThousandsCEMETERY 2020 Budgeted Revenue 2020 YTD Actual Revenue 2019 Actual Revenue 2020 YTD Actual Expenses Cumulative Revenues & Expenditures 2020 Budget vs. Actual 33 Quarterly Financial Report Through September 2020 34 Internal Service Funds Operating expenditures within the Insurance Fund represent the premium cost pool that will be allocated monthly to other City funds over the course of the year. As a result, the expenditure balance gradually diminishes each month throughout the year. No significant variances are reported in the Workers’ Compensation, Facilities, Innovation & Technology, or Equipment Rental Funds. Contact Information This report is prepared by the Finance Department. Additional financial information can also be viewed at our website: http://www.auburnwa.gov/. For any questions about this report please contact Jamie Thomas at jdthomas@auburnwa.gov. 34 Investment Purchase Book Maturity Yield to Type Date Value Date Maturity State Investment Pool Various 120,639,922$ Various 0.21% KeyBank Money Market Various 14,013,737 Various 0.01% OpusBank Public Interest Acct Various 10,534,157 Various 0.24% FFCB 12/30/2019 1,999,618 12/30/2020 1.63% FFCB 8/27/2018 2,025,600 2/23/2021 2.70% RFCSP 2/19/2019 5,146,514 1/15/2021 2.52% RFCSP 5/9/2019 5,097,353 10/15/2020 2.23% STRIPS 7/26/2019 5,046,067 11/15/2020 1.83% FHLB 1/17/2020 5,044,370 12/9/2022 1.56% Total Cash & Investments 169,547,337$ 0.458% Investment Mix % of Total State Investment Pool 71.2%Current 6-month treasury rate 0.12% Key Bank Money Market 8.3%Current State Pool rate 0.21% Opus Bank Public Interest Acct 6.2%KeyBank Money Market 0.01% FHLB 3.0%OpusBank Public Interest Acct 0.24% FFCB 2.4%Blended Auburn rate 0.46% RFCSP 6.0% STRIPS 3.0% 100.0% City of Auburn Investment Portfolio Summary September 30, 2020 Summary 35 SALES TAX SUMMARY SEPTEMBER 2020 SALES TAX DISTRIBUTIONS (FOR JULY 2020 RETAIL ACTIVITY) 2019 Annual Total 2019 YTD 2020 YTD YTD 2019 Annual Total 2019 YTD 2020 YTD YTD NAICS CONSTRUCTION (Nov '18-Oct '19)(Nov '18-Jul '19)(Nov '19 - Jul '20)% Diff NAICS AUTOMOTIVE (Nov '18-Oct '19)(Nov '18-Jul '19)(Nov '19 - Jul '20)% Diff 236 Construction of Buildings 1,219,472 799,302 1,383,282 73.1%441 Motor Vehicle and Parts Dealer 3,809,399 2,840,445 2,579,995 -9.2% 237 Heavy and Civil Construction 132,101 98,473 135,787 37.9%447 Gasoline Stations 259,864 196,657 166,617 -15.3% 238 Specialty Trade Contractors 840,982 608,960 619,417 1.7%TOTAL AUTOMOTIVE 4,069,263$ 3,037,102$ 2,746,612$ -9.6% TOTAL CONSTRUCTION 2,192,555$ 1,506,735$ 2,138,487$ 41.9%Overall Change from Previous Year (290,491)$ Ov erall Change from Previous Year 631,752$ 2019 Annual Total 2019 YTD 2020 YTD YTD 2019 Annual Total 2019 YTD 2020 YTD YTD NAICS RETAIL TRADE (Nov '18-Oct '19)(Nov '18-Jul '19)(Nov '19 - Jul '20)% Diff NAICS MANUFACTURING (Nov '18-Oct '19)(Nov '18-Jul '19)(Nov '19 - Jul '20)% Diff 442 Furniture and Home Furnishings 221,841 160,025 142,528 -10.9% 311 Food Manufacturing 9,140 6,802 7,013 3.1%443 Electronics and Appliances 277,403 204,900 218,692 6.7% 312 Beverage and Tobacco Products 12,690 8,929 8,764 -1.8%444 Building Material and Garden 651,706 486,621 547,710 12.6% 313 Textile Mills 326 180 957 430.4%445 Food and Beverage Stores 406,230 303,970 336,554 10.7% 314 Textile Product Mills 2,965 2,023 1,849 -8.6%446 Health and Personal Care Store 426,130 329,890 262,298 -20.5% 315 Apparel Manufacturing 767 537 876 63.2%448 Clothing and Accessories 1,236,033 901,139 636,756 -29.3% 316 Leather and Allied Products 307 267 381 42.5%451 Sporting Goods, Hobby, Books 254,383 185,343 171,903 -7.3% 321 Wood Product Manufacturing 13,028 10,227 11,001 7.6%452 General Merchandise Stores 818,123 620,494 673,093 8.5% 322 Paper Manufacturing 10,180 8,867 2,271 -74.4%453 Miscellaneous Store Retailers 917,046 676,134 849,062 25.6% 323 Printing and Related Support 46,449 33,825 28,614 -15.4%454 Nonstore Retailers 227,559 174,803 201,088 15.0% 324 Petroleum and Coal Products 8,499 6,195 1,386 -77.6%TOTAL RETAIL TRADE 5,436,454$ 4,043,320$ 4,039,685$ -0.1% 325 Chemical Manufacturing 11,220 9,857 8,441 -14.4%Overall Change from Previous Year (3,635)$ 326 Plastics and Rubber Products 7,666 5,819 5,161 -11.3% 327 Nonmetallic Mineral Products 19,762 15,128 10,196 -32.6% 331 Primary Metal Manufacturing 48,894 31,445 46,752 48.7%2019 Annual Total 2019 YTD 2020 YTD YTD 332 Fabricated Metal Product Manuf 29,751 24,399 19,210 -21.3%NAICS SERVICES (Nov '18-Oct '19)(Nov '18-Jul '19)(Nov '19 - Jul '20)% Diff 333 Machinery Manufacturing 21,356 17,475 11,494 -34.2%51*Information 667,861 505,756 a 514,800 1.8% 334 Computer and Electronic Product 8,921 5,565 6,548 17.7%52*Finance and Insurance 138,176 104,707 143,314 36.9% 335 Electric Equipment, Appliances 1,213 174 8,044 4513.3%53*Real Estate, Rental, Leasing 434,301 321,782 279,484 -13.1% 336 Transportation Equipment Man 510,518 356,059 76,082 -78.6%541 Professional, Scientific, Tech 344,043 248,422 282,543 c 13.7% 337 Furniture and Related Products 17,907 16,159 7,470 -53.8%551 Company Management 1,147 1,138 34 -97.0% 339 Miscellaneous Manufacturing 39,336 29,819 23,866 -20.0%56*Admin. Supp., Remed Svcs 522,491 389,522 475,923 22.2% TOTAL MANUFACTURING 820,898$ 589,753$ 286,376$ -51.4%611 Educational Services 45,995 31,727 22,832 -28.0% Overall Change from Previous Year (303,378)$ 62*Health Care Social Assistance 93,305 72,041 88,140 22.3% 71*Arts and Entertainment 119,538 85,220 40,674 -52.3% 72*Accommodation and Food Svcs 1,469,344 1,087,824 894,605 -17.8% 2019 Annual Total 2019 YTD 2020 YTD YTD 81*Other Services 606,743 456,165 392,200 -14.0% NAICS TRANSPORTATION AND WAREHOUSING (Nov '18-Oct '19)(Nov '18-Jul '19)(Nov '19 - Jul '20)% Diff 92*Public Administration 2,204 1,269 1,454 14.5% 481 Air Transportation 0 0 0 N/A TOTAL SERVICES 4,445,147$ 3,305,574$ 3,136,003$ -5.1% 482 Rail Transportation 22,935 16,496 13,030 -21.0%Overall Change from Previous Year (169,572)$ 484 Truck Transportation 17,265 11,049 17,779 60.9% 485 Transit and Ground Passengers 27 27 14 -48.7% 488 Transportation Support 37,253 28,328 65,380 130.8%2019 Annual Total 2019 YTD 2020 YTD YTD 491 Postal Service 727 541 526 -2.9%NAICS MISCELLANEOUS (Nov '18-Oct '19)(Nov '18-Jul '19)(Nov '19 - Jul '20)% Diff 492 Couriers and Messengers 285 218 16,539 7496.6%000 Unknown 0 0 0 N/A 493 Warehousing and Storage 10,217 7,288 7,839 7.6%111-115 Agriculture, Forestry, Fishing 4,807 3,719 4,217 13.4% TOTAL TRANSPORTATION 88,710$ 63,946$ 121,106$ 89.4%211-221 Mining & Utilities 29,481 21,471 18,704 -12.9% Overall Change from Previous Year 57,160$ 999 Unclassifiable Establishments 230,217 167,494 200,710 19.8% TOTAL SERVICES 264,505$ 192,684$ 223,631$ 16.1% Overall Change from Previous Year 30,947$ 2019 Annual Total 2019 YTD 2020 YTD YTD NAICS WHOLESALE TRADE (Nov '18-Oct '19)(Nov '18-Jul '19)(Nov '19 - Jul '20)% Diff 423 Wholesale Trade, Durable Goods 1,169,244 b 897,370 758,279 -15.5%GRAND TOTAL 18,813,547$ 13,872,916$ 13,678,441$ 424 Wholesale Trade, Nondurable 316,221 229,311 217,708 -5.1%Overall Change from Previous Year (194,475)$ -1.4% 425 Wholesale Electronic Markets 10,550 7,120 10,556 48.3% TOTAL WHOLESALE 1,496,015$ 1,133,801$ 986,543$ -13.0%Total September 2020 Sales Tax Distributions 1,858,640$ Overall Change from Previous Year (147,258)$ 254,390$ Percent Increase from September 2019 Comparisons: Includes Adjustments in excess of +/- $10,000.September 2019 13,872,916 12,268,667 1,604,250$ a. WA State Department of Revenue audit adjustment to sales tax returns for February 2019 Reporting (adjustment: $14,165).September 2018 13,588,552 12,068,672 1,519,880$ b. WA State Department of Revenue audit adjustment to sales tax returns for August 2019 Reporting (adjustment: $10,411). c. WA State Department of Revenue adjustment to sales tax returns for July 2020 Reporting (adjustment: $18,706). 09/28/20 Prepared by Auburn Finance Department 15.9% 36 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 14,778,400 11,174,434 (3,603,966) 8,554,200 6,399,036 (2,155,164) 17,259,700 12,588,592 (4,671,108) 10,328,200 7,703,130 (2,625,070) Grants - - - - 50,000 50,000 Interest Earnings - 49,530 49,530 - 28,473 28,473 - 2,959 2,959 - 29,248 29,248 Rents, Leases, Concessions, & Other 187,000 124,669 (62,331) 69,000 36,118 (32,882) - -- 56,000 41,725 (14,275) TOTAL OPERATING REVENUES 14,965,400 11,348,633 (3,616,767) 8,623,200 6,463,627 (2,159,573) 17,259,700 12,591,551 (4,668,149) 10,384,200 7,824,104 (2,560,096) OPERATING EXPENSES Salaries & Wages 2,522,053 1,757,843 764,210 1,511,111 1,069,549 441,562 - - - 2,574,037 1,731,904 842,133 Benefits 1,446,108 888,658 557,450 846,106 530,848 315,258 - - - 1,437,619 889,327 548,292 Supplies 364,244 237,633 126,611 164,550 75,130 89,420 - - - 84,550 48,584 35,966 Other Service Charges 4,520,767 2,214,993 2,305,774 3,478,200 2,125,977 1,352,223 18,397,800 13,127,914 5,269,886 2,070,740 1,040,560 1,030,180 Intergovernmental Services (Less Transfers Out)- - - - - - Waste Management Payments Sewer Metro Services - - - Debt Service Interest 1,064,200 346,086 718,114 293,900 114,420 179,480 - - - 346,700 161,025 185,675 Interfund Operating Rentals & Supplies 1,844,067 1,391,998 452,069 1,443,267 1,091,040 352,227 - - - 1,838,700 1,387,256 451,444 TOTAL OPERATING EXPENSES 11,761,439 6,837,211 4,924,228 7,737,134 5,006,964 2,730,170 18,397,800 13,127,914 5,269,886 8,352,346 5,258,656 3,093,690 OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION 3,203,961 4,511,421 1,307,460 886,066 1,456,663 570,597 (1,138,100) (536,363) 601,737 2,031,854 2,565,447 533,593 NON-OPERATING REVENUES Operating Transfers-in - - - Intergovernmental Loan 3,095,821 55,022 3,040,799 Other Non-Operating Revenues - Revenue Bond Proceeds 15,719,900 15,729,824 (9,924) NON-OPERATING EXPENSES Transfer to Capital Subfund 14,220,292 2,927,272 11,293,020 - - - - - - Other Operating Transfers-out 2,390,308 272,785 2,117,523 315,681 8,457 307,224 391,081 82,457 308,624 Debt Service Principal 1,638,200 - 1,638,200 596,700 - 596,700 470,100 - 470,100 Net Change in Restricted Net Assets - 3,002,875 3,002,875 - 603,549 603,549 - 245,993 245,993 Interfund Loan Repayment Other Non-Operating Expenses BEGINNING WORKING CAPITAL - January 1, 2020 11,913,106 11,913,106 - 7,216,765 7,216,765 - 3,445,836 3,445,836 - 7,198,290 7,198,290 - ENDING WORKING CAPITAL - September 30, 2020 15,683,988 26,006,441 10,322,453 7,190,450 8,061,422 870,972 2,307,736 2,909,473 601,737 8,368,963 9,435,287 1,066,324 NET CHANGE IN WORKING CAPITAL (see Note)3,770,882 14,093,335 10,322,453 (26,315) 844,657 870,972 (1,138,100) (536,363) 601,737 1,170,673 2,236,997 1,066,324 CAPITAL FUND: CAPITAL REVENUES Interest Revenue 4,300 279 (4,021) 34,700 79,314 44,614 34,700 50,643 15,943 Grants - - - 174,120 - (174,120) Contributions - - - - - - - - - Other Non-Operating Revenue - 28,638 28,638 - - - - 16,493 16,493 Increase In Contributions - System Development 960,200 516,656 (443,544) 670,500 161,134 (509,366) 501,800 525,075 23,275 Interfund Revenues - - - - - - - - - Increase In Contributions - FAA - - - - - - - - - Proceeds of Debt Activity - - - - - - - - - Transfers In from Operating Sub-Fund 14,220,292 2,927,272 (11,293,020) - - - - - - Transfer In from Other Funds 2,000,000 250,000 (1,750,000) - - - - - TOTAL CAPITAL REVENUES 17,184,792 3,722,844 (13,461,948) 705,200 240,448 (464,752) 710,620 592,212 (118,408) CAPITAL EXPENSES Other Non-Operating Expense - 107,669 (107,669) - 2,283 (2,283) - - - Increase In Fixed Assets - Salaries 353,600 227,193 126,407 78,600 69,742 8,858 130,000 77,309 52,691 Increase In Fixed Assets - Benefits 141,400 105,825 35,575 31,400 34,316 (2,916) 52,000 36,690 15,310 Increase In Fixed Assets - Services 400 8 392 2,000 382 1,618 2,000 570 1,430 Increase In Fixed Assets - Site Improvements 122,000 33,616 88,384 - - - - - Increase In Fixed Assets - Equipment - - - - - - - - - Increase In Fixed Assets - Construction 16,460,553 3,169,515 13,291,038 3,959,842 768,896 3,190,946 2,263,293 369,865 1,893,428 Operating Transfers Out 50,000 50,000 - 50,000 50,000 - 50,000 50,000 - TOTAL CAPITAL EXPENSES 17,127,953 3,693,825 13,434,128 4,121,842 925,619 3,196,223 2,497,293 534,434 1,962,859 BEGINNING WORKING CAPITAL - January 1, 2020 81,079 81,079 - 13,300,157 13,300,157 - 11,809,735 11,809,735 - 137,918 110,098 (27,820) 9,883,515 12,614,986 2,731,471 10,023,062 11,867,513 1,844,451 NET CHANGE IN WORKING CAPITAL (see Note)56,839 29,019 (27,820) (3,416,642) (685,171) 2,731,471 (1,786,673) 57,778 1,844,451 Total Change in Working Capital 3,827,721 14,122,355 10,294,634 (3,442,957) 159,486 3,602,443 (1,138,100) (536,363) 601,737 (616,000) 2,294,775 2,910,775 (*) Depreciation 3,829,600 2,833,029 2,450,100 1,754,509 - - 2,315,100 1,590,546 OPERATING & CAPITAL FUNDS WATER ENTERPRISE FUNDS SEWER SEWER METRO STORMThrough September 2020 (*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures; payments will be made as scheduled in December 2020. Working Capital = Current Assets minus Current Liabilities ENDING WORKING CAPITAL - September 30, 2020 See note 37 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 Operating Rentals & Supplies TOTAL OPERATING EXPENSES OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION NON-OPERATING REVENUES Operating Transfers-in Intergovernmental Loan Other Non-Operating Revenues Revenue Bond Proceeds NON-OPERATING EXPENSES Transfer to Capital Subfund Other Operating Transfers-out Debt Service Principal Net Change in Restricted Net Assets Interfund Loan Repayment Other Non-Operating Expenses BEGINNING WORKING CAPITAL - January 1, 2020 ENDING WORKING CAPITAL - September 30, 2020 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, 2020 NET CHANGE IN WORKING CAPITAL (see Note) Total Change in Working Capital (*) Depreciation OPERATING & CAPITAL FUNDS Through September 2020 Working Capital = Current Assets minus Current Liabilities ENDING WORKING CAPITAL - September 30, 2020 See note Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance 464 464 465 465 466 466 - 16,068,500 11,350,487 (4,718,013) 1,378,000 1,086,569 (291,431) 1,086,000 1,079,251 (6,749) - - - 88,600 8,928 (79,672) 70,000 - (70,000) - - 42,400 19,417 (22,983) 7,800 5,020 (2,780) 1,000 3,287 2,287 10,000 2,757 (7,243) - - - 6,100 10,586 4,486 - - - 16,199,500 11,378,831 (4,820,669) 1,461,900 1,102,175 (359,725) 1,087,000 1,082,538 (4,462) 10,000 2,757 (7,243) - - - 232,843 155,560 77,283 473,497 331,110 142,387 - - - - - - 167,008 78,520 88,488 291,646 187,912 103,734 175,000 58,727 116,273 53,400 4,913 48,487 307,000 266,688 40,312 221,700 188,111 33,589 - - - 2,499,675 1,377,564 1,122,111 213,800 161,553 52,247 157,400 74,468 82,932 5,600 466,333 (460,733) - - - - - - - - - - - - 13,485,300 9,309,144 4,176,156 - - - 100 34 66 - - - - - - 642,300 487,763 154,537 46,100 34,575 11,525 196,000 147,349 48,651 - - - 16,680,675 11,179,383 5,501,292 966,851 696,929 269,922 1,340,243 928,950 411,293 180,600 525,060 (344,460) (481,175) 199,448 680,623 495,049 405,246 (89,803) (253,243) 153,587 406,830 (170,600) (522,303) (351,703) 100,000 - (100,000) - - - 355,400 220,386 100,000 32,500 22,877 6,720 16,157 - - - - - - - - - - - - - (93,582) (93,582) - - - 12,200 11,627 573 5,936,695 5,936,695 - 634,377 634,377 - 822,045 822,045 - 1,921,953 1,921,953 - 5,432,643 6,129,423 696,780 761,826 901,192 139,366 568,802 943,132 374,330 1,751,353 1,399,650 (351,703) (504,052) 192,728 696,780 127,449 266,815 139,366 (253,243) 121,087 374,330 (170,600) (522,303) (351,703) 200 1,687 1,487 - 989 989 165,000 52,000 (113,000) - - - - - - - - - - - - - - - - - - - - - 3,812,598 2,782,184 (1,030,414) - - - - - - - - - 355,400 220,386 (135,014) 100,000 32,500 (67,500) - - - 55,400 55,400 - 4,333,198 3,056,257 (1,276,941) 155,400 88,889 (66,511) - - - - - - 4,300 76 4,224 - 4,139 (4,139) 1,700 24 1,676 - 2,151 (2,151) 100 - 100 100 16 84 - - - - - - - - 4,650,290 3,255,268 1,395,022 405,400 332,242 73,158 25,000 - 25,000 - - - 4,681,390 3,255,369 1,426,021 405,500 338,547 66,953 429,841 429,841 - 258,983 258,983 - 81,649 230,729 149,080 8,883 9,325 442 (348,192) (199,112) 149,080 (250,100) (249,658) 442 (504,052) 192,728 (220,743) 67,703 288,446 (503,343) (128,570) 374,773 (170,600) (522,303) (351,703) 21,100 9,410 519,700 319,522 45,000 19,238 - - Note: Includes September's Waste Management payment ($1,116,268), which will be made in October. (*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures; payments will be made as scheduled in December 2020. ENTERPRISE FUNDS SOLID WASTE AIRPORT CEMETERY INTERNAL SERVICE FUNDS INSURANCE See note below 38 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 Operating Rentals & Supplies TOTAL OPERATING EXPENSES OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION NON-OPERATING REVENUES Operating Transfers-in Intergovernmental Loan Other Non-Operating Revenues Revenue Bond Proceeds NON-OPERATING EXPENSES Transfer to Capital Subfund Other Operating Transfers-out Debt Service Principal Net Change in Restricted Net Assets Interfund Loan Repayment Other Non-Operating Expenses BEGINNING WORKING CAPITAL - January 1, 2020 ENDING WORKING CAPITAL - September 30, 2020 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, 2020 NET CHANGE IN WORKING CAPITAL (see Note) Total Change in Working Capital (*) Depreciation OPERATING & CAPITAL FUNDS Through September 2020 Working Capital = Current Assets minus Current Liabilities ENDING WORKING CAPITAL - September 30, 2020 See note Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance - - 568 568 560 560 1,150,500 770,118 (380,382) 3,490,600 2,648,587 (842,013) 6,587,500 4,964,742 (1,622,758) 2,085,395 1,506,980 (578,415) - - - - - - 26,600 10,918 (15,682) 10,100 5,943 (4,157) - 10,704 10,704 - 10,572 10,572 50,000 5,937 (44,063) - 11,982 11,982 - 2,625 2,625 - 102,634 102,634 1,227,100 786,973 (440,127) 3,500,700 2,666,512 (834,188) 6,587,500 4,978,071 (1,609,429) 2,085,395 1,620,185 (465,210) - - - 711,793 604,703 107,090 2,009,816 1,507,278 502,538 563,879 505,792 58,087 250,000 46,446 203,554 444,389 303,435 140,954 1,112,945 684,479 428,466 327,656 234,607 93,049 - - - 140,220 68,014 72,206 460,150 425,963 34,187 941,200 655,810 285,390 455,315 199,603 255,712 1,839,560 1,085,250 754,310 2,830,900 2,014,816 816,084 504,100 308,230 195,870 - - - - - - - - - - - - - - - - - - - - - 1,500 257 1,243 128,100 96,075 32,025 161,400 121,050 40,350 185,900 139,425 46,475 304,000 229,313 74,687 833,415 342,124 491,291 3,297,362 2,182,453 1,114,909 6,599,711 4,771,961 1,827,750 2,642,335 1,934,008 708,327 393,685 444,849 51,164 203,338 484,059 280,721 (12,211) 206,110 218,321 (556,940) (313,823) 243,117 205,000 41,832 (163,168) 269,953 40,940 (229,013) - - - 500,000 - 500,000 698,700 282,558 416,142 - - - - - - - - - - - - - - - - (42,797) (42,797) - 49,840 (49,840) 1,877,627 1,877,627 - 1,315,496 1,315,496 - 2,522,898 2,522,898 - 2,956,770 2,956,770 - 2,271,312 2,322,476 51,164 1,025,134 1,558,830 533,696 2,280,640 2,769,949 489,309 2,399,830 2,685,744 285,914 393,685 444,849 51,164 (290,362) 243,334 533,696 (242,258) 247,051 489,309 (556,940) (271,026) 285,914 - 5,027 5,027 - 17,724 17,724 133,700 - (133,700) - - - - - - - 7,405 7,405 - 12,782 12,782 - - - - - - - - - 1,585,105 1,245,895 (339,210) - - - - - - - - - - - - 500,000 - (500,000) - - - 25,000 - (25,000) 868,600 - (868,600) 525,000 12,432 (512,568) 2,587,405 1,276,401 (1,311,004) - - - - - - - - - - - - - - - - - - 300 61 239 500 309 191 - - 1,186,527 516,531 669,996 2,941,150 873,104 2,068,046 - - - 1,140,000 - 1,140,000 - - - - - - 1,186,827 516,591 670,236 4,081,650 873,412 3,208,238 1,445,614 1,445,614 - 4,419,304 4,419,304 - 783,787 941,455 157,668 2,925,059 4,822,293 1,897,234 (661,827) (504,159) 157,668 (1,494,245) 402,989 1,897,234 393,685 444,849 51,164 (290,362) 243,334 533,696 (904,085) (257,109) 646,976 (2,051,185) 131,963 2,183,148 - - - - 530,000 272,949 1,300,000 1,033,657 INTERNAL SERVICE FUNDS WORKER'S COMPENSATION FACILITIES INNOVATION & TECHNOLOGY EQUIPMENT RENTAL 39