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HomeMy WebLinkAboutQ4 2020 Financial Report AGENDA BILL APPROVAL FORM Agenda Subject: Financial Report Through December 2020 Date: February 23, 2021 Department: Finance Attachments: Financial Report through December 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 December 31, 2020 status report based on financial data available as of January 28, 2021. Sales tax information represents business activity that occurred November 2019 - October 2020. Staff: Thomas Meeting Date: March 8, 2021 Item Number: Quarterly Financial Report Through December 2020 General Fund Summary $1.1 $3.6 $4.8 $3.5 $2.9 $5.3 $1.1 $4.6 $30.8 $4.4 $12.7 $3.9 $6.8 $1.0 $3.4 $4.3 $3.1 $2.4 $4.3 $1.0 $4.6 $28.5 $3.6 $10.8 $3.5 $2.8 Council& MayorAdministrativeServicesHumanResourcesFinanceCity AttorneyCommunityDevelopmentCommunity &Human ServicesJail - SCOREPolicePublicWorksParks, Arts& RecreationStreetsNon-Departmental$0 $5 $10 $15 $20 $25 $30 $35 $40 Millions2020 Budget 2020 Actuals (Favorable) 2020 Actuals (Unfavorable) General Fund Expenditures by Department(Through December 2020) $22.0 $17.7 $13.5 $9.3 $0.7 $1.5 $6.1 $5.8 $50.5 $24.9 $9.4 $0.5 $22.4 $21.4 $14.2 $10.2 $1.0 $1.6 $6.8 $42.6 $20.8 $9.4 $0.4 $3.4 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 December 2020)$76.5 $85.4$81.1 $73.1 Total Revenues Total Expenditures $0 $20 $40 $60 $80 $100 Millions1 Quarterly Financial Report Through December 2020 2 General Fund 2019 Summary of Sources and Uses Annual YE YE YE Budget Budget Actual Actual Amount Operating Revenues Property Tax 7 22,000,000$ 22,000,000$ 22,445,340$ 21,907,038$ 445,340$ 2.0 % Retail Sales Tax 8-9 15,576,200 15,576,200 18,855,889 18,766,215 3,279,689 21.1 % Affordable Housing Sales Tax Credit 150,000 150,000 149,445 98 (555)(0.4)% Sales Tax - Pierce County Parks 110,800 110,800 111,038 110,860 238 0.2 % Sales Tax - Annexation Credit - - - 373,279 0 N/A Criminal Justice Sales Tax 1,910,000 1,910,000 2,265,134 2,415,647 355,134 18.6 % Brokered Natural Gas Tax 131,000 131,000 151,369 225,847 20,369 15.5 % City Utilities Tax 9-10 4,521,700 4,521,700 4,540,292 4,103,107 18,592 0.4 % Admissions Tax 10-11 252,800 252,800 209,091 444,678 (43,709)(17.3)% Electric Tax 9-10 4,024,400 4,024,400 4,206,456 3,535,407 182,056 4.5 % Natural Gas Tax 9-10 1,201,900 1,201,900 1,254,700 927,187 52,800 4.4 % Cable Franchise Fee 904,000 904,000 902,977 923,506 (1,023)(0.1)% Cable Utility Tax 1,135,100 1,135,100 1,149,682 974,747 14,582 1.3 % Cable Franchise Fee - Capital 65,000 65,000 61,346 64,263 (3,654)(5.6)% Telephone Tax 9-10 981,900 981,900 1,122,804 935,324 140,904 14.4 % Solid Waste Tax (external)9-10 154,600 154,600 231,046 148,706 76,446 49.4 % Leasehold Excise Tax 51,000 51,000 224,090 211,916 173,090 339.4 % Gambling Excise Tax 11 82,100 82,100 109,986 374,082 27,886 34.0 % Taxes sub-total 53,252,500$ 53,252,500$ 57,990,683$ 56,441,907$ 4,738,183$ 8.9 % Business License Fees 12 328,000$ 328,000$ 353,802$ 336,359$ 25,802$ 7.9 % Building Permits 13 720,000 720,000 835,588 1,232,743 115,588 16.1 % Other Licenses & Permits 551,300 551,300 897,189 1,074,402 345,889 62.7 % Intergovernmental (Grants, etc.)14-15 9,274,170 9,274,170 10,223,904 6,038,639 949,734 10.2 % Charges for Services:15-17 General Government Services 15 2,823,620 2,823,620 2,971,348 2,636,527 147,728 5.2 % Public Safety 15-16 964,000 964,000 1,109,581 1,213,112 145,581 15.1 % Development Services Fees 15-16 650,000 650,000 955,824 1,098,969 305,824 47.0 % Culture and Recreation 15, 17 1,512,380 1,512,380 1,638,185 2,600,103 125,805 8.3 % Fines and Penalties 17-18 668,500 668,500 635,209 914,240 (33,291) (5.0)% Fees/Charges/Fines sub-total 17,491,970$ 17,491,970$ 19,620,631$ 17,145,093$ 2,128,661$ 12.2 % Interest and Investment Earnings 19 700,700$ 700,700$ 506,385$ 406,802$ (194,315)$ (27.7)% Rents and Leases 19 517,600 517,600 432,432 938,457 (85,168)(16.5)% Contributions and Donations 19 46,200 46,200 30,945 41,321 (15,255)(33.0)% Other Miscellaneous 19 230,800 230,800 200,414 386,132 (30,386)(13.2)% Transfers In 4,081,527 4,081,527 2,081,527 120,456 (2,000,000)(49.0)% Insurance Recoveries - Capital & Operating 179,250 179,250 189,322 127,895 10,072 5.6 % Other Revenues sub-total 5,756,077$ 5,756,077$ 3,441,025$ 2,021,063$ (2,315,052)$ (40.2)% Total Operating Revenues 76,500,547$ 76,500,547$ 81,052,339$ 75,608,062$ 4,551,792$ 6.0 % Operating Expenditures Council & Mayor 1,057,296$ 1,057,296$ 950,412.30$ 1,009,480$ 106,884$ 10.1 % Administration 3,578,081 3,578,081 3,408,641 2,429,605 169,440 4.7 % Human Resources 1,767,704 1,767,704 1,598,724 1,530,153 168,980 9.6 % Municipal Court & Probation 3,074,111 3,074,111 2,675,734 3,003,011 398,377 13.0 % Finance 3,518,178 3,518,178 3,086,689 3,339,183 431,489 12.3 % City Attorney 2,894,572 2,894,572 2,360,532 2,566,977 534,040 18.4 % Community Development 5,349,088 5,349,088 4,294,915 4,072,172 1,054,173 19.7 % Community & Human Services (Comm Devel)1,055,484 1,055,484 992,927 1,030,651 62,557 5.9 % Jail - SCORE 4,601,000 4,601,000 4,565,099 4,962,413 35,901 0.8 % Police 30,763,024 30,763,024 28,456,544 28,234,921 2,306,480 7.5 % Public Works 4,426,341 4,426,341 3,628,787 3,729,378 797,554 18.0 % Parks, Arts & Recreation 12,673,216 12,673,216 10,770,987 12,576,009 1,902,229 15.0 % Streets 3,858,677 3,858,677 3,546,286 3,638,316 312,391 8.1 % Non-Departmental 6,811,133 6,811,133 2,750,054 1,919,610 4,061,079 59.6 % Total Operating Expenditures 85,427,905$ 85,427,905$ 73,086,331$ 74,041,879$ 12,341,574$ 14.4 % Page Ref 2020 2020 YE Budget vs. Actual Favorable (Unfavorable) Percentage 2 Quarterly Financial Report Through December 2020 3 Executive Summary This report provides an overview of the City’s overall financial position for the fiscal period ending December 31, 2020, reflecting financial data available as of January 28, 2021. 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 in March 2020. While King County had since progressed to Phase 2, reopening in mid-2020, by November the Governor had enacted additional restrictions based on the increased rate of COVID-19 infections. Therefore, revenues through the end of 2020 were still being unfavorably impacted compared to what would be considered normal activity. The revenue categories that were primarily impacted by the pandemic included admission tax, gambling tax, culture and recreation, and rents and leases. In light of the economic impacts of COVID-19, the City adjusted some General Fund revenue budgets downward to reflect new expectations for 2020. At the same time, the City also implemented expenditure reductions with the goal of closing the expected revenue gap. These expenditure reductions are reflected in this financial report in both the budget and actuals. In 2020, General Fund revenues totaled $81.1 million and were $4.6 million, or 6.0% favorable to the revised budget expectations. The City estimates that the annual revenue loss to the General Fund in 2020 due to COVID-19 was between $6.0 million and $9.0 million. To help close the revenue gap, the City implemented the following policy changes in mid-2020; together, these changes accounted for incremental revenue to the General Fund in the amount of $2.7 million. Policy Changes due to COVID-19: • Diverted interest earnings for most funds to the General Fund for 2020 (retroactive to April).The incremental revenue to the General Fund as a result of this policy change was an additional $263,000 in revenue. • No longer allocated 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 remained in the General Fund. The funding source in 2020 for the Arterial Street Fund was replaced with real estate excise tax (REET) monies. This policy change was made retroactive to January, and the incremental revenue in 2020 to the General Fund as a result of this policy change was approximately $464,000. • Retained all utility tax revenues entirely in the General Fund for 2020 and replaced this funding source for the Arterial Street Preservation Fund with REET funds. This policy change, which was also made retroactive to January, resulted in incremental revenue to the General Fund of $2.0 million. Notable variances to budget include: • Retail Sales Tax: The sales tax report through December 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 October 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 were down in some areas, there were some categories that exceeded expectations; most notable among these was the construction category, which increased by $876,000 in 2020 compared to 2019. While it was expected that retail sales tax dollars would be considerably lower than 2019 due to COVID-19, 2020 actuals were $90,000, or 0.5% higher than the year prior. [pages 8-9] 3 Quarterly Financial Report Through December 2020 4 • Building permit revenues in 2020 totaled $836,000 and were $116,000, or 16.1%, above budget, although this revenue source ended the year nearly $400,000 less than revenues that were collected in 2019. While the “Stay Home, Stay Healthy” order did impact building permit revenues, there were three significant commercial projects in the City that contributed to higher than anticipated revenues this year: the replacement of Pioneer Elementary School and construction of Auburn Elementary School #16 and the Bridge Point Warehouse. 475 building permits were issued in 2020, which was 13.6% less than the number of permits issued in 2019. [page 13] • Culture and recreation revenues collected in 2020 totaled $1.6 million and were $962,000 less than what was collected in 2019. These reduced revenues were 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 in March. While some activities resumed later in the year, these were generally at a reduced capacity; other activities continued to be on hold, delayed, or canceled to comply with the Governor’s guidance for Washington’s Safe Start phased reopening plan. [pages 15, 17] • The 2020 budget anticipated the need to transfer $4.0 million from the Cumulative Reserve Fund but, due to significant underspends in 2020, only $2.0 million of the $4.0 million transfer was needed. 2020 ending fund balances will not be finalized until approximately June 2021 pending year-end adjustments and certification by the State Auditor’s Office. Once the final ending 2020 fund balances are available, budgeted beginning 2021 fund balances will be reconciled and adjusted accordingly. 2020 General Fund expenditures totaled $73.1 million compared to a revised budget of $85.4 million; this represents a $12.3 million, or 14.4%, favorable variance to budget. All departments operated within their allocated budget in 2020. Salary and benefit costs were underspent by $8.0 million. In addition, in the services and charges category was underspent by $3.7 million, predominately in professional services and miscellaneous expenditures. Due to the significant impact the COVID-19 pandemic had 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 had 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. 4 Quarterly Financial Report Through December 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. In 2020, Arterial Street Fund revenues totaled $2.6 million as compared to collections of $1.9 million in 2019, while expenditures totaled $3.1 million as compared to expenditures of $2.0 million in 2019. [pages 22–23] Local Street Fund revenues of $1.9 million are in line with budget expectations and only $61,000 below collections in 2019. Expenditures in 2020 were $1.1 million as compared with $2.2 million in 2019. [pages 24–25] Lastly, Arterial Street Preservation Fund revenues totaled $3.1 million in 2020, approximately $511,000 higher than 2019. Expenditures totaled $2.3 million versus $3.9 million last year. [pages 26–27] YE Budget $ 76.5M YE Budget $ 85.4M YE Actuals $ 81.1M YE Actuals $ 73.1M $0 $20 $40 $60 $80 $100 Revenues Expenditures $ Millions General Fund Revenues vs. Expenditures Through December 2020 5 Quarterly Financial Report Through December 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 2020 with operating income of $5.5 million year-to-date, compared to $6.2 million last year. [page 29] The Sewer Fund finished 2020 with operating income of $1.9 million versus $2.7 million in 2019. This variance is largely due to a one-time refund from the Department of Revenue last year, as well as lower commercial consumption volumes. [page 30] In 2020 the Stormwater Fund had operating income of $3.3 million compared to $2.0 million in 2019, largely due to the rate increase implemented in January. [page 30] The Solid Waste Fund finished 2020 with year-to-date operating loss of $114,000 compared to operating income of $200,000 last year. [pages 30-31] The Airport Fund experienced operating income of $604,000 in 2020, compared to $476,000 in 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, as well as increased revenue from property leases and rents. [page 32] The Cemetery Fund had operating income of $229,000 in 2020, compared to $107,000 in 2019. This increase in largely attributable to increased revenues from lot sales. [page 32] 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 in 2020. [page 33] 6 Quarterly Financial Report Through December 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 in 2020 totaled $22.4 million and compare to a budget of $22.0 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 had 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 Actual 2019 Actual $17.2 $17.9 $20.8 $21.4 $21.9 $22.4 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 2015 2016 2017 2018 2019 2020MillionsProperty Tax Revenue Actuals 7 Quarterly Financial Report Through December 2020 8 Retail Sales Tax collections in 2020 reflect taxes remitted to the City of Auburn based on sales from November 2019 through October 2020, including several months where non-essential business were closed as part of the “Stay Home, Stay Healthy” order and some businesses occupancy was restricted to 25% or 50%. As a result, sales tax revenues in many categories were lower than sales taxes collected during the same period in 2019. Conversely, sales tax revenues collected in the construction category increased in 2020 by $876,000 compared to 2019 due primarily to the construction of two elementary schools, Legacy Plaza, the Bridge Point Warehouse, and several single-family homes. In a 2020 budget amendment, the budget for retail sales tax revenues was reduced by $3.3 million to reflect revised expectations but actual impacts were less than anticipated. Overall, 2020 retail sales taxes collected totaled $18.9 million and were $90,000 higher than collections in 2019, exceeding budget expectations by $3.3 million. 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. $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 Actual 2019 Actual $14.5 $14.6 $14.9 $15.9 $18.8 $18.9 $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 2020MillionsRetail Sales & Use Tax Actuals 8 Quarterly Financial Report Through December 2020 9 The following table breaks out the City’s retail sales taxes by major business sector. Citywide retail sales tax revenue collected in 2020 were $42,000, or 0.2%, more than revenues collected in 2019. While most business sectors generated less revenue, the construction category collected significantly more revenue in 2020 than the year prior. 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 temporary policy change regarding how these utility tax revenues were recorded. Historically, these revenues have been split between the General Fund and the Arterial Street Preservation Fund. Effective in 2020 only and retroactive to January, the City retained 100% of the utility tax revenues in the General Fund. This policy change resulted in an additional $2.0 million in revenues in the General Fund in 2020 to fund ongoing operations. 2019 2020 Component Group Actual Actual Amount Construction 2,192,555$ 3,068,164$ 875,610$ 39.9 % Manufacturing 820,898 389,637 (431,261)$ (52.5)% Transportation & Warehousing 88,710 197,189 108,479$ 122.3 % Wholesale Trade 1,496,015 1,346,271 (149,743)$ (10.0)% Automotive 4,069,263 3,826,981 (242,282)$ (6.0)% Retail Trade 5,436,454 5,499,535 63,081$ 1.2 % Services 4,445,147 4,220,223 (224,924)$ (5.1)% Miscellaneous 264,505 307,887 43,382$ 16.4 % YE Total 18,813,547$ 18,855,888$ 42,341$ 0.2 % Comparison of Retail Sales Tax Collections by Group Through December Change from 2019 Percentage $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 Actual 2019 Actual 9 Quarterly Financial Report Through December 2020 10 The table below demonstrates the various utility tax revenues and show actuals compared to budget. An Admission Tax of 5.0% is placed on charges for general admission, season tickets, cover charges, etc. Admission tax revenues collected in 2020 totaled $209,000 and compare to $445,000 collected 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 from April through December and will be limited for some period in 2021. Beyond the initial shutdown in March, the Governor allowed golf courses to reopen within certain limitations and the Auburn Golf Course reopened in early May. Revenues in this category collected beginning in May were almost exclusively from admissions tax collected from the golf course. $9.7 $10.0 $10.2 $9.9 $9.6 $11.4 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 2015 2016 2017 2018 2019 2020MillionsUtility Tax Revenues Actuals 2019 2020 2020 Utility Tax Type YE Actual YE Budget YE Actual Amount Amount City Interfund Utility Taxes 4,103,107$ 4,521,700$ 4,540,292$ $ 437,185 10.7 % $ 18,592 0.4 % Electric 3,535,407 4,024,400 4,206,456 671,049 19.0 %182,056 4.5 % Natural Gas 927,187 1,201,900 1,254,700 327,513 35.3 %52,800 4.4 % Telephone 935,324 981,900 1,122,804 187,480 20.0 %140,904 14.4 % Solid Waste (external)148,706 154,600 231,046 82,340 55.4 %76,446 49.4 % YE Total 9,649,730$ 10,884,500$ 11,355,297$ $ 1,705,567 17.7 % $ 470,797 4.3 % Through December 2020 Utility Tax by Type 2020 vs. 2019 Actual 2020 vs. Budget Percentage Percentage 10 Quarterly Financial Report Through December 2020 11 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 were mostly on hold during the year. Therefore, revenues generated from gambling taxes in 2020 were significantly lower than normal. As depicted in the graphic below, revenues collected in 2020 totaled $110,000, which was $264,000 less than collections in 2019. x $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 Actual 2019 Actual $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 Actual 2019 Actual 11 Quarterly Financial Report Through December 2020 12 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. Business license revenues collected in 2020 totaled $354,000 and were $26,000, or 7.9%, favorable to budget. $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 Actual 2019 Actual $282 $225 $163 $353 $336 $354 $0 $50 $100 $150 $200 $250 $300 $350 $400 2015 2016 2017 2018 2019 2020ThousandsBusiness License Revenues Actuals 12 Quarterly Financial Report Through December 2020 13 Building Permit revenues collected in 2020 totaled $836,000 and ended the year $116,000, or 16.1%, favorable to budget, which had been reduced by $350,000 to adjust for expected fiscal impacts related to COVID-19. While these revenues were 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 Actual 2019 Actual $1.2 $2.0 $1.2 $0.9 $1.2 $0.8 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2015 2016 2017 2018 2019 2020MillionsBuilding Permits Actuals 13 Quarterly Financial Report Through December 2020 14 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 in 2020 totaled $10.2 million and were $950,000 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. Total intergovernmental revenues collected in 2020 was $4.2 million higher than collections in 2019. The primary contributor of the increase in year-over-year revenues was seen in the Federal grant revenues. Due to the COVID-19 pandemic, the City of Auburn received $3.8 million in CARES Act (Coronavirus Aid, Relief, and Economic Security Act) funding which was used to meet expenditures for public safety dedicated to mitigating or responding to the COVID- 19 public health emergency. Due to COVID-19 and the “Stay Home, Stay Healthy” order, many people drastically reduced their driving patterns and therefore fuel consumption was 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 had historically benefitted the Arterial Street Fund were retained in the General Fund. The policy change resulted in an additional $464,000 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 expected to receive these monies through Q2-2021. In the state’s effort to close its revenue gap due to COVID-19, the state announced in April it was discontinuing any SST distributions after Q2-2020. This loss of revenue represented 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 $250,000. 2019 2020 2020 Revenue YE Actual YE Budget YE Actual Amount Amount Federal Grants 315,319$ 4,184,910$ 4,098,926$ $ 3,783,607 1199.9 % $ (85,984)(2.1)% State Grants 216,442 230,000 155,813 (60,629) (28.0)%(74,187) (32.3)% Interlocal Grants 130,972 498,800 468,349 337,377 0.0 %(30,451) (6.1)% Muckleshoot Casino Services 1,228,007 845,200 1,721,249 493,243 40.2 %876,049 103.6 % State Shared Revenues: Streamlined Sales Tax 1,279,860 490,000 494,830 (785,031) (61.3)%4,830 1.0 % Motor Vehicle Fuel Tax 1,162,578 1,417,400 1,498,329 335,750 28.9 %80,929 5.7 % Criminal Justice - High Crime 224,094 200,000 228,428 4,334 1.9 %28,428 14.2 % Criminal Justice - Population 24,165 22,800 25,601 1,436 5.9 %2,801 12.3 % Criminal Justice - Special Prog.86,942 84,000 91,623 4,682 5.4 %7,623 9.1 % Marijuana Excise Tax 180,727 135,000 172,010 (8,717) (4.8)%37,010 27.4 % State DUI 11,233 11,600 11,878 645 5.7 %278 2.4 % Fire Insurance Tax 80,386 78,900 85,819 5,433 6.8 %6,919 8.8 % Liquor Excise 440,761 410,060 515,087 74,326 16.9 %105,027 25.6 % Liquor Profit 657,153 665,500 655,964 (1,189) (0.2)%(9,536) (1.4)% Total State Shared:4,147,900 3,515,260 3,779,568 (368,332)(8.9)%264,308 7.5 % YE Total 6,038,639$ 9,274,170$ 10,223,904$ 4,185,265$ 69.3 %949,734$ 10.2 % Through December 2020 Intergovernmental Revenues (Grants, Entitlements & Services) 2020 vs. 2019 Actual 2020 vs. Budget % Change % Change 14 Quarterly Financial Report Through December 2020 15 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 in 2020 totaled $6.7 million and were $874,000, or 11.6%, less than revenues collected in 2019. 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 $10.2 $0 $2 $4 $6 $8 $10 $12 2015 2016 2017 2018 2019 2020MillionsIntergovernmental Revenues (Grants, Entitlements & Services) Actuals 2019 2020 2020 Revenue YE Actual YE Budget YE Actual Amount Amount General Government 2,636,527$ 2,823,620$ 2,971,348$ $ 334,822 12.7 % $ 147,728 5.2 % Public Safety 1,213,112 964,000 1,109,581 (103,531) (8.5)%145,581 15.1 % Development Services 1,098,969 650,000 955,824 (143,145) (13.0)%305,824 47.0 % Culture & Recreation 2,600,103 1,512,380 1,638,185 (961,917) (37.0)%125,805 8.3 % YE Total 7,548,710$ 5,950,000$ 6,674,939$ (873,772)$ (11.6)% $ 724,939 12.2 % Through December 2020 Charges for Services by Type 2020 vs. 2019 Actual 2020 vs. Budget Percentage Percentage 15 Quarterly Financial Report Through December 2020 16 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 in 2020 totaled $1.1 million and were $179,000, or 19.8%, favorable to budget expectations. Revenues collected in 2020 were lower than collections in 2019 as some businesses who utilize these services did 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. In 2020, development service fees totaled $956,000, and were $306,000 favorable to budget expectations. The favorable variance to budget was seen primarily in facility extension charges, which generated $468,000 in revenue in 2020. Part of this favorable variance was due to a sizable change in the fee schedule for this service. Plan check revenues collected in 2020 totaled $375,000 and were approximately $245,000 less than amounts collected in 2019. Plan check revenues included numerous commercial and residential projects including Auburn Elementary School #16, the replacement of Pioneer Elementary School, Legacy Plaza, projects at Boeing, and the Copper Gate Apartments as well as single family residential projects such as the Forest Glen and Pulte Homes developments. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsDevelopment Service Fees 2020 Budget 2020 Actual 2019 Actual 16 Quarterly Financial Report Through December 2020 17 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, senior programs and special events. Due to COVID-19, all of these activities were suspended in March. Effective May 2020, the Auburn Golf Course reopened with restrictions but there were numerous other culture and recreation activities that continued to be suspended or were significantly modified through the end of 2020. Therefore, culture and recreation revenues collected in 2020 totaled $1.6 million as compared to $2.6 million collected last year, which represents a 37.0% reduction in revenues. 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 in 2020 totaled $635,000 compared to a budget of $669,000 and were 5.0% 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 $2.8 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsCulture & Recreation 2020 Budget 2020 Actual 2019 Actual 2019 2020 2020 Month YE Actual YE Budget YE Actual Amount Amount Civil Penalties 93,531$ 15,000$ 22,436$ $ (71,095)(76.0)% $ 7,436 49.6 % Civil Infraction Penalties 426,138 349,900 270,885 (155,252) (36.4)%(79,015) (22.6)% Redflex Photo Enforcement 3,296 0 1,411 (1,885) (57.2)%1,411 N/A % Parking Infractions 126,452 69,800 69,073 (57,379) (45.4)%(727) (1.0)% Criminal Traffic Misdemeanor 36,927 57,400 26,197 (10,730) (29.1)%(31,203) (54.4)% Criminal Non-Traffic Fines 58,052 43,600 23,752 (34,300) (59.1)%(19,848) (45.5)% Criminal Costs 17,944 46,900 19,547 1,602 8.9 %(27,353) (58.3)% Non-Court Fines & Penalties 151,900 85,900 201,907 50,007 32.9 %116,007 135.0 % YE Total 914,240$ 668,500$ 635,209$ $ (279,031)(30.5)% $ (33,291)(5.0)% Through December 2020 Fines & Penalties by Type 2020 vs. 2019 Actual 2020 vs. Budget Percentage Percentage 17 Quarterly Financial Report Through December 2020 18 $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 Actual 2019 Actual $0.9 $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 2015 2016 2017 2018 2019 2020MillionsFines & Penalties Actuals 18 Quarterly Financial Report Through December 2020 19 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 in 2020 in this category totaled $1.2 million and were under budget expectations by $325,000, or 21.7%. The majority of the unfavorable variance to budget was in the interest and investments category. As noted earlier, the City implemented a temporary policy change in 2020 where the majority of interest earnings for most funds were diverted to the General Fund (retroactive to April 2020). The incremental revenue to the General Fund as a result of this policy change was an additional $263,000 in revenue. While the budget was increased to reflect this policy change, there was an unfavorable variance to budget 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 declined each month and was as low as 0.16% in December. 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 as well as golf cart rentals, parking spot rentals, and lease rental revenue from the restaurant located at the Golf Course. Due to COVID-19, facility rental revenue abruptly halted in March as all of the facilities closed. While some rental activity since resumed, there continued to be significant restrictions on rentals for the year. Rent and lease revenue collected in 2020 was $506,000, or 53.9%, less than was collected in 2019. 2019 2020 2020 Month YE Actual YE Budget YE Actual Amount Amount Interest & Investments 406,802$ 700,700$ 506,385$ 99,584$ 24.5 %(194,315)$ (27.7)% Rents & Leases 938,457 517,600 432,432 (506,025)(53.9)%(85,168) (16.5)% Contributions & Donations 41,321 46,200 30,945 (10,376)(25.1)%(15,255) (33.0)% Other Miscellaneous Revenue 386,132 230,800 200,414 (185,718)(48.1)%(30,386) (13.2)% YE Total 1,772,712$ 1,495,300$ 1,170,176$ (602,535)$ (34.0)%(325,124)$ (21.7)% Miscellaneous Revenues by Type Through December 2020 2020 vs. 2019 2020 vs. Budget Percentage Percentage $1.0 $1.2 $1.5 $1.8 $1.8 $1.2 $0.0 $0.5 $1.0 $1.5 $2.0 2015 2016 2017 2018 2019 2020MillionsMiscellaneous Revenues Actuals 19 Quarterly Financial Report Through December 2020 20 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 in 2020 totaled $4.2 million, exceeding budget expectations by $1.7 million. Sales activity in 2020 included the sale of several warehouses, several office complexes, as well as numerous retail businesses, multi-family complexes, single family homes, and several parcels of vacant land. 2019 2020 2020 Month Actual Budget Actual Amount Amount Jan 387,084$ 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 414,124 208,500 444,623 30,500 7.4 %236,123 113.2 % Nov 1,046,103 208,500 439,428 (606,675) (58.0)%230,928 110.8 % Dec 553,301 208,900 554,308 1,007 0.2 %345,408 165.3 % YE Total 5,221,975$ 2,502,400$ 4,239,394$ (982,581)$ (18.8)%1,736,994$ 69.4 % Real Estate Excise Tax Revenues December 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 Actual 2019 Actual 20 Quarterly Financial Report Through December 2020 21 $4.6 $4.3 $3.6 $3.8 $5.2 $4.2 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2015 2016 2017 2018 2019 2020MillionsReal Estate Excise Tax Revenues Actuals 21 Quarterly Financial Report Through December 2020 22 Street Funds This section provides a financial overview of the City’s three street funds for the period ending December 31, 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 December 31, 2020 there were 25 separate street projects budgeted in this fund. In 2020, revenues collected totaled $2.6 million as compared to collections of $1.9 million in 2019. Total expenditures in 2020 were $3.1 million as compared to $2.0 million expended in 2019. Variances in revenues and expenditures are largely due to the timing of capital expenditures and any subsequent reimbursement via grants and/or operating transfers. Expenditure timing is generally determined by the current phase of each individual capital project; expenditures tend to increase as projects move from design phase into construction. Fund 102 - Arterial Street 2019 Summary of Sources and Uses 2020 2020 YE 2020 YE 2019 YE Report Period: December 2020 Budget Budget Actual Actual Amount Revenues Federal Grants 5,535,770$ 5,535,770$ 292,049$ 589,081$ (5,243,721)$ (94.7)% State And Local Grants 730,000 730,000 30,020 - (699,980) (95.9)% Motor Vehicle Fuel and Multimodal Taxes 197,000 197,000 111,399 641,601 (85,601) (43.5)% Developer Contributions - - - - - Miscellaneous Revenue - - 194,065 - 194,065 Other Governmental Agencies - 280,000 - - (280,000) (100.0)% Operating Transfer In 3,370,194 3,370,194 1,953,492 609,065 (1,416,702) (42.0)% Investment Income 11,600 11,600 7,660 42,766 (3,940) (34.0)% Total Revenues 9,844,564$ 10,124,564$ 2,588,685$ 1,882,513$ (7,535,879)$ (74.4)% Expenditures Salary and Benefits 397,000$ 397,000$ 531,846$ 314,620$ (134,846)$ (34.0)% Capital Outlay 10,096,046 10,096,046 2,083,399 991,035 8,012,647 79.4 % Subtotal - Capital Project Expenditures 10,493,046 10,493,046 2,615,245 1,305,655 7,877,801 75.1 % Services and Charges 400,000 400,000 173,854 286,713 226,146 56.5 % Interfund Payments for Services 80,100 80,100 80,100 78,100 - 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$ 11,180,746$ 3,076,626$ 2,021,785$ 8,104,120$ 72.5 % Net Change in Fund Balance (1,336,182)$ (1,056,182)$ (487,941)$ (139,273)$ 568,241$ 53.8 % Beg. Fund Balance, January 2020 1,970,223$ Net Change in Fund Balance, December 2020 (487,941) Ending Fund Balance, December 2020 1,482,282$ 2020 Budgeted Ending Fund Balance 634,041$ 2020 2020 YE Budget vs. Actual Favorable (Unfavorable) Percentage 22 Quarterly Financial Report Through December 2020 23 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 YE Budget 2020 YE Actual 2019 YE Actual 2020 YE Actual: $2.6M 2020 Budget: $10.5M 2019 YE Actual: $1.3M Name 2020 Budget YTD Actual Remaining F Street SE Non-Motorized Improvements $2.9M $1.3M $1.6M 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 $1.1M $2.8M Total $10.5M $2.6M $7.9M *Components may not sum to total due to rounding. Fund 102 - Arterial Street Capital Projects Status * 23 Quarterly Financial Report Through December 2020 24 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 in 2020 were $1.9 million and compare to expenditures of $2.0 million in 2019. Highlighted in the table below and shown in the following graph are the fund’s total expenditures related to capital projects. Fund 103 - Local Street Fund 2019 Summary of Sources and Uses 2020 2020 YE 2020 YE 2019 YE Report Period: December 2020 Budget Budget Actual Actual Amount Revenues Sales Tax on Construction -$ -$ -$ -$ -$ Operating Transfer In 1,900,000 1,900,000 1,900,000$ 1,900,000 - 0.0 % Interest Earnings - - 10,301$ 71,732 10,301 Total Revenues 1,900,000$ 1,900,000$ 1,910,301$ 1,971,732$ 10,301$ 0.5 % Expenditures Capital Salary and Benefits 162,391 162,391 120,657 99,810 41,734 25.7 % Capital Services and Charges Capital Outlay 2,950,143 2,950,143 1,016,935 2,046,645 1,933,208 65.5 % Subtotal - Capital Project Expenditures 3,112,534 3,112,534 1,137,592 2,146,456 1,974,942 63.5 % Admin Salary and Benefits - - 19,745 18,438 (19,745)$ Admin Services and Charges 700 700 361 22,787 339 48.5 % Interfund Payments for Services 15,600 15,600 15,600 15,200 - 0.0 % Operating Transfer Out - - - - - Total Expenditures 3,128,834$ 3,128,834$ 1,173,297$ 2,202,880$ 1,955,537$ 62.5 % Net Change in Fund Balance (1,228,834)$ (1,228,834)$ 737,004$ (231,148)$ 1,965,838$ 160.0 % Beg. Fund Balance, January 2020 2,550,612$ Net Change in Fund Balance, December 2020 737,004 Ending Fund Balance, December 2020 3,287,616$ 2020 Budgeted Ending Fund Balance 1,321,778$ 2020 2020 YE Budget vs. Actual Favorable (Unfavorable) Percentage 24 Quarterly Financial Report Through December 2020 25 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 YE Budget 2020 YE Actual 2019 YE Actual 2020 Budget : $3.1M 2019 YE Actual: $2.1M 2020 YE Actual: $1.1M Name 2020 Budget YTD Actual Remaining 2021 Local Street Preservation $1.7M $0.1M $1.5M 2020 Local Street Reconstruction $0.8M $0.7M $0.0M 2019 Local Street Reconstruction $0.7M $0.3M $0.4M All Other Projects (2 Others Budgeted)$0.0M $0.0M $0.0M Total $3.1M $1.1M $2.0M *Components may not sum to total due to rounding. Fund 103 - Local Street Capital Projects Status* 25 Quarterly Financial Report Through December 2020 26 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 transfers-in of 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. In 2020 revenues totaled $3.1 million, which is approximately $511,000 lower than in 2019. This is primarily due to the change in funding source, and also the timing associated with construction projects and their subsequent cost reimbursements from grants and transfers-in. Expenditures in 2020 were $2.3 million as compared to $3.9 million through in 2019. Historically, the majority of this fund’s expenditures occur in the second half of each year due to the weather sensitivity of pavement construction (this work needs to be done primarily in the summer and early fall). Highlighted in the table below and shown in the following graph are the fund’s total expenditures related to capital projects. Fund 105 - Arterial Street Preservation 2019 Summary of Sources and Uses 2020 2020 YE 2020 YE 2019 YE Report Period: December 2020 Budget Budget Actual Actual Amount Revenues City Utility Tax 66,900$ 66,900$ -$ 683,851$ (66,900)$ (100.0)% Electric Utility Tax 69,900 69,900 - 707,081 (69,900) (100.0)% Natural Gas Utility Tax 19,800 19,800 - 185,437 (19,800) (100.0)% Cable TV Tax 18,800 18,800 - 194,949 (18,800) (100.0)% Telephone Utility Tax 16,100 16,100 - 187,065 (16,100) (100.0)% Garbage Utility Tax (External Haulers)2,200 2,200 - 24,784 (2,200) (100.0)% Grants 3,880,589 3,880,589 741,557 833,586 (3,139,032) (80.9)% Permits - - 168,887 - 168,887 Developer Mitigation Fees - - - 79,343 - Operating Transfer In 2,618,020 2,618,020 2,142,224 632,659 (475,796) (18.2)% Interest Earnings 13,000 13,000 7,297 41,765 (5,703) (43.9)% Total Revenues 6,705,309$ 6,705,309$ 3,059,965$ 3,570,522$ (3,645,344)$ (54.4)% Expenditures Salary and Benefits 306,000$ 306,000$ 546,715$ 557,262$ (240,715)$ (78.7)% Capital Outlay 6,903,224 6,903,224 1,734,348 3,336,071 5,168,876 74.9 % Subtotal - Capital Project Expenditures 7,209,224 7,209,224 2,281,063 3,893,333 4,928,161 68.4 % Services and Charges - - 985 76,809 (985) Operating Transfer Out - - - - - Total Expenditures 7,209,224$ 7,209,224$ 2,282,047$ 3,970,142$ 4,927,177$ 68.3 % Net Change in Fund Balance (503,915)$ (503,915)$ 777,918$ (399,620)$ 1,281,833$ 254.4 % Beg. Fund Balance, January 2020 2,041,919$ Net Change in Fund Balance, December 2020 777,918 Ending Fund Balance, December 2020 2,819,837$ 2020 Budgeted Ending Fund Balance 1,538,004$ 2020 2020 YE Budget vs. Actual Favorable (Unfavorable) Percentage 26 Quarterly Financial Report Through December 2020 27 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 NovMillionsFund 105 -Capital Project Expenditures 2020 YE Budget 2020 YE Actual 2019 YE Actual 2020 Budget: $7.2M 2019 YE Actual: $3.9M 2020 YE Actual: $2.3M Name 2020 Budget YTD Actual Remaining AWN Preservation Phase 3 $1.8M $0.9M $1.0M AWN Preservation Phase 2 $1.5M $0.3M $1.2M 2020 Arterial Street Preservation $0.9M $0.3M $0.6M All Other Projects (13 Others Budgeted)$3.0M $0.8M $2.2M Total $7.2M $2.3M $4.9M *Components may not sum to total due to rounding. Capital Projects Status* Fund 105 - Arterial Street Preservation 27 Quarterly Financial Report Through December 2020 28 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 $2.0 million in revenues in in 2020, which exceeded total revenue budgeted for the year. With the exception of interest and investment income, each revenue category exceeded its annual budgeted amount. Expenditures were significantly below budget due to the timing of capital projects funded by mitigation and/or impact fee revenues. Fund 124 - Mitigation Fees Summary of Sources and Uses Report Period Through:Ending Ending December 2020 Fund Balance Fund Balance Transportation Impact Fees 800,000$ 2,952,194$ 5,541,320$ 1,325,856$ 1,530,492$ 7,488,878$ Traffic Migitation Fees - - 123,687 13,622 - 137,309 Fire Impact Fees 100,000 75,000 473,889 129,526 - 578,415 Fire Mitigation Fees - - 81 - - 81 Parks Impact Fees 200,000 2,121,728 3,382,966 301,000 344,017 5,261,677 Parks Mitigation Fees - 300,000 49,371 129,591 300,000 178,962 School Impact Admin Fees 2,000 - 86,251 4,625 - 88,876 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$ 1,961,338$ 2,174,509$ 13,890,917$ Beginning Fund Balance, January 2020 14,104,088$ Net Change in Fund Balance, December 2020 (213,171) Ending Fund Balance, December 2020 13,890,917$ 2020 Budgeted Ending Fund Balance 9,956,866$ YE ActualsBUDGET Revenues ExpendituresRevenuesExpenditures 28 Quarterly Financial Report Through December 2020 29 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. In 2020 the Water Utility had operating income of $5.5 million as compared to $6.2 million in 2019. Total Water Fund operating revenues were $617,000 lower than 2019; the majority of this variance was due to weaker performance in water sales. Increases in residential sales revenue were more than offset by decreases in most other categories, particularly commercial, manufacturing, and schools. Also contributing to the reduced operating income was a significant decrease in interest earnings from 2019 to 2020. Operating expenditures in 2020 were materially the same as in 2019. Water sales by volume in 2020 totaled 2.9 million hundred cubic feet (ccf) as compared to 3.1 million ccf in 2019, a decrease of 5.2%. Consumption was lower each month in 2020 compared to 2019 with the exception of the March, September and October billings for the prior months’ consumption. Total consumption decreased across all non-residential categories, resulting in the lowest 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 significantly 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) 29 Quarterly Financial Report Through December 2020 30 In 2020, the Sewer Utility finished with operating income of $1.9 million as compared to $2.7 million in 2019. Last year, the fund received a one-time $203,000 refund from the Department of Revenue for an overpayment of excise tax; this significantly increased revenues in 2019. Consumption by volume in 2020 was down 10.8% from 2019 due to reductions in commercial consumption, which was exacerbated by COVID-19 mitigation efforts. This resulted in a decrease of $259,000 in sewer service revenue. Operating expenditures in the Sewer Utility were 1.8% higher than 2019, due mainly to increases in interfund allocations, debt service payments and service charges. In 2020, the Stormwater Utility had operating income of $3.3 million compared with $3.0 million in 2019. Operating revenues were up $107,000 compared to 2019 mainly due to charges for City storm service. As most Stormwater Utility charges are based on a flat rate, COVID-19 did not have a significant effect on service revenue. Operating expenditures in the Stormwater Utility were down $191,000 from 2019, contributing to the higher operating income noted above. This variance was mainly due to lower expenses for services. In 2020 the Solid Waste Utility Fund had $15.5 million in operating revenues, compared to $15.6 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. In 2020, Waste Management serviced 15,586 customers (79% of customers) and Republic Services serviced 4,180 customers (21% of customers). The current mix of solid waste customer account types is: • 89.6% Residential • 7.9% 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. In 2020, the total diversion rate was 30.2%, which represents a total of 24,600 tons of waste that was diverted from landfills. 30 Quarterly Financial Report Through December 2020 31 2020 Tons Collected and Diversion Rates Of the total tonnage collected in 2020, 37% was from residential customers, 16% from multifamily customers, and 47% from commercial customers, as shown in the following graph: 31 Quarterly Financial Report Through December 2020 32 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. In 2020, the Airport Fund had operating income of $604,000 as compared with operating income of $476,000 in 2019. Operating revenues in the Airport Fund were $71,000 more than the same period last year, largely due to increased revenue for property leases and tie down and hangar rents. Operating expenditures in the Airport Fund were $57,000 less than last year. Much of this variance consisted of payroll expenditures, which decreased due to a vacant position at the Airport. Other notable decreases include expenditures on operating supplies and small tools and equipment. In 2020, the Cemetery Fund experienced operating income of $229,000 as compared with an operating income of $107,000 in 2019. Total sales revenue was up $175,000, or 12.8% from 2019, due mainly to significant increases in lot sales revenue. Other significant contributing factors were increased revenues for openings and closings, as well as sales of liners. Operating expenditures were up $53,000 or 4.2% from last year due largely to increased expenditures for inventory purchases and interfund charges. 32 Quarterly Financial Report Through December 2020 33 Internal Service Funds Operating expenditures within the Insurance Fund represent the premium cost pool that will be allocated monthly to other City funds over the course of the year. As a result, the expenditure balance gradually diminishes each month throughout the year. No significant variances are reported in the Workers’ Compensation, Facilities, Innovation & Technology, or Equipment Rental Funds. Contact Information This report is prepared by the Finance Department. Additional financial information can also be viewed at our website: http://www.auburnwa.gov/. For any questions about this report please contact Jamie Thomas at jdthomas@auburnwa.gov. 33 Investment Purchase Book Maturity Yield to Type Date Value Date Maturity State Investment Pool Various 125,692,297$ Various 0.16% KeyBank Money Market Various 20,465,622 Various 0.01% Pacific Premier Bank Interest Acct Various 10,539,569 Various 0.17% FFCB 8/27/2018 2,025,600 2/23/2021 2.70% RFCSP 2/19/2019 5,146,514 1/15/2021 2.52% FHLB 1/17/2020 5,044,370 12/9/2022 1.56% FHLMC 11/20/2020 5,001,765 11/6/2023 2.38% Total Cash & Investments 173,915,737$ 0.344% Investment Mix % of Total State Investment Pool 72.3%Current 6-month treasury rate 0.09% Key Bank Money Market 11.8%Current State Pool rate 0.16% Pacific Premier Bank Interest Acct 6.1%KeyBank Money Market 0.01% FHLB 2.9%Pacific Premier Interest Acct 0.17% FFCB 1.2%Blended Auburn rate 0.34% RFCSP 3.0% FHLMC 2.9% 100.0% City of Auburn Investment Portfolio Summary December 31, 2020 Summary 34 SALES TAX SUMMARY DECEMBER 2020 SALES TAX DISTRIBUTIONS (FOR OCTOBER 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-Oct '19)(Nov '19 - Oct '20)% Diff NAICS AUTOMOTIVE (Nov '18-Oct '19)(Nov '18-Oct '19)(Nov '19 - Oct '20)% Diff 236 Construction of Buildings 1,219,472 1,219,472 2,000,382 64.0%441 Motor Vehicle and Parts Dealer 3,809,399 3,809,399 3,594,307 -5.6% 237 Heavy and Civil Construction 132,101 132,101 184,377 39.6%447 Gasoline Stations 259,864 259,864 232,674 -10.5% 238 Specialty Trade Contractors 840,982 840,982 883,406 5.0%TOTAL AUTOMOTIVE 4,069,263$ 4,069,263$ 3,826,981$ -6.0% TOTAL CONSTRUCTION 2,192,555$ 2,192,555$ 3,068,164$ 39.9%Overall Change from Previous Year (242,282)$ Overall Change from Previous Year 875,610$ 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-Oct '19)(Nov '19 - Oct '20)% Diff NAICS MANUFACTURING (Nov '18-Oct '19)(Nov '18-Oct '19)(Nov '19 - Oct '20)% Diff 442 Furniture and Home Furnishings 221,841 221,841 209,308 -5.6% 311 Food Manufacturing 9,140 9,140 10,332 13.0%443 Electronics and Appliances 277,403 277,403 300,343 8.3% 312 Beverage and Tobacco Products 12,690 12,690 11,872 -6.4%444 Building Material and Garden 651,706 651,706 751,040 15.2% 313 Textile Mills 326 326 1,178 260.8%445 Food and Beverage Stores 406,230 406,230 450,577 10.9% 314 Textile Product Mills 2,965 2,965 2,390 -19.4%446 Health and Personal Care Store 426,130 426,130 348,418 -18.2% 315 Apparel Manufacturing 767 767 1,301 69.6%448 Clothing and Accessories 1,236,033 1,236,033 872,671 -29.4% 316 Leather and Allied Products 307 307 488 58.9%451 Sporting Goods, Hobby, Books 254,383 254,383 239,744 -5.8% 321 Wood Product Manufacturing 13,028 13,028 14,670 12.6%452 General Merchandise Stores 818,123 818,123 878,021 7.3% 322 Paper Manufacturing 10,180 10,180 4,028 -60.4%453 Miscellaneous Store Retailers 917,046 917,046 1,178,104 28.5% 323 Printing and Related Support 46,449 46,449 37,260 -19.8%454 Nonstore Retailers 227,559 227,559 271,309 19.2% 324 Petroleum and Coal Products 8,499 8,499 1,404 -83.5%TOTAL RETAIL TRADE 5,436,454$ 5,436,454$ 5,499,535$ 1.2% 325 Chemical Manufacturing 11,220 11,220 10,595 -5.6%Overall Change from Previous Year 63,081$ 326 Plastics and Rubber Products 7,666 7,666 7,322 -4.5% 327 Nonmetallic Mineral Products 19,762 19,762 16,154 -18.3% 331 Primary Metal Manufacturing 48,894 48,894 62,321 27.5%2019 Annual Total 2019 YTD 2020 YTD YTD 332 Fabricated Metal Product Manuf 29,751 29,751 34,205 15.0%NAICS SERVICES (Nov '18-Oct '19)(Nov '18-Oct '19)(Nov '19 - Oct '20)% Diff 333 Machinery Manufacturing 21,356 21,356 22,168 3.8%51*Information 667,861 667,861 a 684,732 2.5% 334 Computer and Electronic Product 8,921 8,921 8,232 -7.7%52*Finance and Insurance 138,176 138,176 177,847 28.7% 335 Electric Equipment, Appliances 1,213 1,213 8,276 582.0%53*Real Estate, Rental, Leasing 434,301 434,301 368,873 -15.1% 336 Transportation Equipment Man 510,518 510,518 92,399 -81.9%541 Professional, Scientific, Tech 344,043 344,043 c 394,150 14.6% 337 Furniture and Related Products 17,907 17,907 10,109 -43.5%551 Company Management 1,147 1,147 66 -94.3% 339 Miscellaneous Manufacturing 39,336 39,336 32,935 -16.3%56*Admin. Supp., Remed Svcs 522,491 522,491 651,469 24.7% TOTAL MANUFACTURING 820,898$ 820,898$ 389,637$ -52.5%611 Educational Services 45,995 45,995 40,410 -12.1% Overall Change from Previous Year (431,261)$ 62*Health Care Social Assistance 93,305 93,305 110,693 18.6% 71*Arts and Entertainment 119,538 119,538 50,412 -57.8% 72*Accommodation and Food Svcs 1,469,344 1,469,344 1,204,980 -18.0% 2019 Annual Total 2019 YTD 2020 YTD YTD 81*Other Services 606,743 606,743 534,972 -11.8% NAICS TRANSPORTATION AND WAREHOUSING (Nov '18-Oct '19)(Nov '18-Oct '19)(Nov '19 - Oct '20)% Diff 92*Public Administration 2,204 2,204 1,620 -26.5% 481 Air Transportation 0 0 0 N/A TOTAL SERVICES 4,445,147$ 4,445,147$ 4,220,223$ -5.1% 482 Rail Transportation 22,935 22,935 14,421 -37.1%Overall Change from Previous Year (224,924)$ 483 Water Transportation 0 0 0 N/A 484 Truck Transportation 17,265 17,265 22,499 30.3% 485 Transit and Ground Passengers 27 27 9 -67.3%2019 Annual Total 2019 YTD 2020 YTD YTD 488 Transportation Support 37,253 37,253 79,945 114.6%NAICS MISCELLANEOUS (Nov '18-Oct '19)(Nov '18-Oct '19)(Nov '19 - Oct '20)% Diff 491 Postal Service 727 727 676 -7.1%000 Unknown 0 0 0 N/A 492 Couriers and Messengers 285 285 69,993 24424.5%111-115 Agriculture, Forestry, Fishing 4,807 4,807 5,367 11.7% 493 Warehousing and Storage 10,217 10,217 9,647 -5.6%211-221 Mining & Utilities 29,481 29,481 28,831 -2.2% TOTAL TRANSPORTATION 88,710$ 88,710$ 197,189$ 122.3%999 Unclassifiable Establishments 230,217 230,217 273,689 18.9% Overall Change from Previous Year 108,479$ TOTAL SERVICES 264,505$ 264,505$ 307,887$ 16.4% Overall Change from Previous Year 43,382$ 2019 Annual Total 2019 YTD 2020 YTD YTD NAICS WHOLESALE TRADE (Nov '18-Oct '19)(Nov '18-Oct '19)(Nov '19 - Oct '20)% Diff GRAND TOTAL 18,813,547$ 18,813,547$ 18,855,888$ 423 Wholesale Trade, Durable Goods 1,169,244 1,169,244 b 1,027,727 -12.1%Overall Change from Previous Year 42,341$ 0.2% 424 Wholesale Trade, Nondurable 316,221 316,221 303,860 -3.9% 425 Wholesale Electronic Markets 10,550 10,550 14,684 39.2%Total December 2020 Sales Tax Distributions 1,652,954$ TOTAL WHOLESALE 1,496,015$ 1,496,015$ 1,346,271$ -10.0%55,877$ g () (149,743)$ Percent Increase from December 2019 Comparisons: December 2019 18,813,547 17,216,470 1,597,077$ Includes Adjustments in excess of +/- $10,000.December 2018 18,198,285 16,691,656 1,506,629$ a. WA State Department of Revenue audit adjustment to sales tax returns for February 2019 Reporting (adjustment: $14,165). 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). 12/29/20 3.5% 35 Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance OPERATING FUND:460 460 461 461 462 462 OPERATING REVENUES Charges For Service 14,778,400 14,832,494 54,094 8,554,200 8,562,111 7,911 17,259,700 16,833,185 (426,515) 10,328,200 10,278,852 (49,348) 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 187,000 148,433 (38,567) 69,000 36,167 (32,833) - - - 56,000 47,373 (8,627) TOTAL OPERATING REVENUES 14,965,400 15,030,457 65,057 8,623,200 8,626,751 3,551 17,259,700 16,836,143 (423,557) 10,384,200 10,405,473 21,273 OPERATING EXPENSES Salaries & Wages 2,522,053 2,390,321 131,732 1,511,111 1,441,451 69,660 - - - 2,574,037 2,352,640 221,397 Benefits 1,446,108 1,184,417 261,691 846,106 703,718 142,389 - - - 1,437,619 1,186,046 251,573 Supplies 364,244 296,678 67,566 164,550 84,872 79,678 - - - 75,050 64,811 10,239 Other Service Charges 4,435,767 2,961,274 1,474,493 3,534,100 2,851,349 682,751 18,397,800 17,352,594 1,045,206 2,070,740 1,399,520 671,220 Intergovernmental Services (Less Transfers Out)- - - - - - Waste Management Payments Sewer Metro Services - - - Debt Service Interest 1,064,200 863,864 200,336 293,900 197,873 96,027 - - - 346,700 287,434 59,266 Interfund Operating Rentals & Supplies 1,844,067 1,853,014 (8,947) 1,443,267 1,451,856 (8,589) - - - 1,838,700 1,846,931 (8,231) TOTAL OPERATING EXPENSES 11,676,439 9,549,568 2,126,871 7,793,034 6,731,119 1,061,915 18,397,800 17,352,594 1,045,206 8,342,846 7,137,382 1,205,464 OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION 3,288,961 5,480,889 2,191,928 830,166 1,895,632 1,065,466 (1,138,100) (516,451) 621,649 2,041,354 3,268,091 1,226,737 NON-OPERATING REVENUES Operating Transfers-in - - - Intergovernmental Loan 3,095,821 116,582 2,979,239 Other Non-Operating Revenues - Revenue Bond Proceeds 15,719,900 15,729,824 (9,924) NON-OPERATING EXPENSES Transfer to Capital Subfund 17,385,692 6,484,733 10,900,959 - - - - - - Other Operating Transfers-out 390,308 57,311 332,997 315,681 13,399 302,282 391,081 87,399 303,682 Debt Service Principal 1,638,200 2,227,831 (589,631) 596,700 862,567 (265,867) 470,100 693,765 (223,665) Net Change in Restricted Net Assets - 1,881,592 1,881,592 - 17,811 17,811 - 4,646 4,646 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 - December 31, 2020 14,603,588 22,588,935 7,985,347 7,134,550 8,218,620 1,084,070 2,307,736 2,929,385 621,649 8,378,463 9,680,571 1,302,108 NET CHANGE IN WORKING CAPITAL (see Note)2,690,482 10,675,829 7,985,347 (82,215) 1,001,855 1,084,070 (1,138,100) (516,451) 621,649 1,180,173 2,482,281 1,302,108 CAPITAL FUND: CAPITAL REVENUES Interest Revenue 4,300 279 (4,021) 34,700 107,572 72,872 34,700 50,643 15,943 Grants - - - 174,120 4,575 (169,545) Contributions - - - - - - - - - Other Non-Operating Revenue - 40,750 40,750 - 388,408 388,408 - 16,493 16,493 Increase In Contributions - System Development 960,200 669,802 (290,398) 670,500 216,134 (454,366) 501,800 575,136 73,336 Interfund Revenues - - - - - - - - - Increase In Contributions - FAA - - - - - - - - - Proceeds of Debt Activity - - - - - - - - - Transfers In from Operating Sub-Fund 17,385,692 6,484,733 (10,900,959) - - - - - - Transfer In from Other Funds - - - - - - - - TOTAL CAPITAL REVENUES 18,350,192 7,195,563 (11,154,629) 705,200 712,114 6,914 710,620 646,847 (63,773) CAPITAL EXPENSES Other Non-Operating Expense - 395,386 (395,386) - - - - - - Increase In Fixed Assets - Salaries 353,600 290,293 63,307 78,600 86,647 (8,047) 130,000 105,938 24,062 Increase In Fixed Assets - Benefits 141,400 136,780 4,620 31,400 44,456 (13,056) 52,000 48,725 3,275 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 53,746 68,254 - - - - - Increase In Fixed Assets - Equipment - - - - - - 9,500 9,497 3 Increase In Fixed Assets - Construction 16,545,553 6,070,218 10,475,335 3,903,942 830,680 3,073,262 2,263,293 421,353 1,841,940 Operating Transfers Out 50,000 50,000 - 50,000 50,000 - 50,000 50,000 - TOTAL CAPITAL EXPENSES 17,212,953 6,996,430 10,216,523 4,065,942 1,012,166 3,053,776 2,506,793 636,083 1,870,710 BEGINNING WORKING CAPITAL - January 1, 2020 81,079 81,079 - 13,300,157 13,300,157 - 11,809,735 11,809,735 - 1,218,318 280,212 (938,106) 9,939,415 13,000,105 3,060,690 10,013,562 11,820,499 1,806,937 NET CHANGE IN WORKING CAPITAL (see Note)1,137,239 199,133 (938,106) (3,360,742) (300,052) 3,060,690 (1,796,173) 10,764 1,806,937 Total Change in Working Capital 3,827,721 10,874,962 7,047,241 (3,442,957) 701,802 4,144,759 (1,138,100) (516,451) 621,649 (616,000) 2,493,045 3,109,045 (*) Depreciation 3,829,600 3,774,956 2,450,100 2,337,347 - - 2,315,100 2,120,788 OPERATING & CAPITAL FUNDS WATER ENTERPRISE FUNDS SEWER SEWER METRO STORMThrough December 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 - December 31, 2020 See note 36 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 - December 31, 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 December 2020 Working Capital = Current Assets minus Current Liabilities ENDING WORKING CAPITAL - December 31, 2020 See note Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance 464 464 465 465 466 466 - 16,068,500 15,443,215 (625,285) 1,378,000 1,428,976 50,976 1,086,000 1,542,097 456,097 - - - 88,600 73,900 (14,700) 70,000 69,000 (1,000) - - 42,400 19,417 (22,983) 7,800 5,471 (2,329) 1,000 3,287 2,287 10,000 2,757 (7,243) - - - 6,100 14,593 8,493 - 100 100 16,199,500 15,536,532 (662,968) 1,461,900 1,518,039 56,139 1,087,000 1,545,483 458,483 10,000 2,757 (7,243) - - - 232,843 214,016 18,827 473,497 447,200 26,297 - - - - - - 167,008 106,253 60,755 291,646 251,180 40,466 175,000 58,727 116,273 53,400 25,238 28,162 307,000 337,904 (30,904) 221,700 272,676 (50,976) - - - 2,499,675 2,872,693 (373,018) 213,800 209,350 4,450 157,400 149,198 8,202 5,600 135,004 (129,404) - - - - - - - - - - - - 13,485,300 12,104,160 1,381,140 - - - 100 34 66 - - - - - - 642,300 648,338 (6,038) 46,100 46,100 (0) 196,000 196,349 (349) - - - 16,680,675 15,650,429 1,030,246 966,851 913,657 53,194 1,340,243 1,316,603 23,640 180,600 193,731 (13,131) (481,175) (113,896) 367,279 495,049 604,382 109,333 (253,243) 228,880 482,123 (170,600) (190,974) (20,374) 100,000 - (100,000) - - - - 2,199 2,199 355,400 220,386 100,000 42,500 22,877 11,662 11,215 - - - - - - - - - - - - - (91,804) (91,804) - (1,851) (1,851) 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 5,811,137 378,494 761,826 1,098,551 336,725 568,802 1,012,475 443,673 1,751,353 1,730,979 (20,374) (504,052) (125,558) 378,494 127,449 464,174 336,725 (253,243) 190,430 443,673 (170,600) (190,974) (20,374) 200 1,696 1,496 - 989 989 165,000 52,000 (113,000) - - - - - - - - - - - - - - - - - - - - - 3,812,598 2,784,718 (1,027,880) - - - - - - - - - 355,400 220,386 (135,014) 100,000 42,500 (57,500) - - - 55,400 55,400 - 4,333,198 3,058,801 (1,274,397) 155,400 98,889 (56,511) - - - - - - 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 3,393,878 1,256,412 405,400 343,383 62,017 25,000 - 25,000 - - - 4,681,390 3,393,979 1,287,411 405,500 349,688 55,812 429,841 429,841 - 258,983 258,983 - 81,649 94,663 13,014 8,883 8,184 (699) (348,192) (335,178) 13,014 (250,100) (250,799) (699) (504,052) (125,558) (220,743) 128,996 349,739 (503,343) (60,368) 442,975 (170,600) (190,974) (20,374) 21,100 9,410 519,700 427,175 45,000 23,891 - - (*) 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 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 - December 31, 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 December 2020 Working Capital = Current Assets minus Current Liabilities ENDING WORKING CAPITAL - December 31, 2020 See note Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance - - 568 568 560 560 1,150,500 1,013,606 (136,894) 3,490,600 3,546,479 55,879 6,587,500 6,636,091 48,591 2,085,395 2,009,306 (76,089) - - - - - - 26,600 10,918 (15,682) 10,100 5,943 (4,157) - 10,704 10,704 - 10,572 10,572 50,000 8,623 (41,377) - 11,982 11,982 - 2,696 2,696 - 120,225 120,225 1,227,100 1,033,147 (193,953) 3,500,700 3,564,403 63,703 6,587,500 6,649,492 61,992 2,085,395 2,140,103 54,708 - - - 786,793 771,049 15,744 2,009,816 2,017,950 (8,134) 563,879 656,449 (92,570) 250,000 91,396 158,604 444,389 391,208 53,181 1,112,945 905,880 207,065 327,656 307,865 19,791 - - - 140,220 74,987 65,233 460,150 213,860 246,290 941,200 856,705 84,495 455,315 242,881 212,434 1,884,560 1,300,013 584,547 2,830,900 2,451,511 379,389 511,100 432,316 78,784 - - - - - - - - - - - - - - - - - - - - - 1,500 257 1,243 128,100 128,100 - 161,400 161,400 0 185,900 185,900 0 304,000 305,313 (1,313) 833,415 462,376 371,039 3,417,362 2,698,657 718,705 6,599,711 5,775,100 824,611 2,649,335 2,558,903 90,432 393,685 570,771 177,086 83,338 865,746 782,408 (12,211) 874,392 886,603 (563,940) (418,800) 145,140 250,000 41,832 (208,168) 269,953 91,941 (178,012) 7,000 - (7,000) 500,000 - 500,000 698,700 679,176 19,524 - - - - - - - - - - - - - - - - (56,664) (56,664) - 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 2,448,398 177,086 950,134 1,543,898 593,764 2,280,640 3,489,231 1,208,591 2,399,830 2,594,634 194,804 393,685 570,771 177,086 (365,362) 228,402 593,764 (242,258) 966,333 1,208,591 (556,940) (362,136) 194,804 - 5,027 5,027 - 17,724 17,724 133,700 133,728 28 - - - - - - - 7,405 7,405 - 12,782 12,782 - -- - - - - -- 1,585,105 1,661,194 76,089 - -- - - - - -- - - - 500,000 - (500,000) - - - 25,000 23,222 (1,778) 868,600 - (868,600) 525,000 35,654 (489,346) 2,587,405 1,825,428 (761,977) - - - - - - - - - - - - - - - - - - 300 61 239 500 309 191 - - 1,186,527 742,323 444,204 2,941,150 1,629,845 1,311,305 - - - 1,140,000 - 1,140,000 - - - - - - 1,186,827 742,383 444,444 4,081,650 1,630,153 2,451,497 1,445,614 1,445,614 - 4,419,304 4,419,304 - 783,787 738,885 (44,902) 2,925,059 4,614,578 1,689,519 (661,827) (706,729) (44,902) (1,494,245) 195,274 1,689,519 393,685 570,771 177,086 (365,362) 228,402 593,764 (904,085) 259,604 1,163,689 (2,051,185) (166,862) 1,884,323 - - - - 530,000 379,334 1,300,000 1,372,284 INTERNAL SERVICE FUNDS WORKER'S COMPENSATION FACILITIES INNOVATION & TECHNOLOGY EQUIPMENT RENTAL 38