HomeMy WebLinkAboutQ4 2021 Financial ReportAGENDA BILL APPROVAL FORM
Agenda Subject:
4th Quarter 2021 Financial Report Update (Thomas) (20
Minutes)
Date:
March 15, 2022
Department:
Finance
Attachments:
Financial Report Through December 2021
Budget Impact:
Administrative Recommendation:
For discussion only.
Background for Motion:
Background Summary:
Reviewed by Council Committees:
Councilmember:Baggett Staff:Thomas
Meeting Date:March 28, 2022 Item Number:
Quarterly Financial Report Through December 2021
General Fund Summary
$22.8
$19.2
$15.1
$5.9
$0.9 $2.3
$7.2
$3.0
$48.4
$26.8
$10.0
$5.1
$23.2 $24.5
$6.6
$1.6 $2.3
$8.0
$3.4
$44.3
$21.8
$9.9
$4.8
$14.7
PropertyTaxesSalesTaxesOtherTaxesIntergovernmental(Grants, etc.)DevelopmentService FeesCulture &RecreationOther Fees& ChargesOtherRevenuesPersonnelSupplies& ServicesOtherExpendituresTransfersOutRevenues Expenditures
$0
$10
$20
$30
$40
$50
$60
$70
Millions2021
Budget
2021
Actuals
(Favorable)
2021
Actuals
(Unfavorable)
General Fund Revenues and Expenditures
(Through December 2021)$76.4
$90.2$84.4 $80.9
Total
Revenues
Total
Expenditures
$0
$20
$40
$60
$80
$100
$120
Millions$1.4 $1.3
$5.1
$3.8 $4.6 $5.4
$1.3
$5.9
$31.5
$3.5
$14.3
$4.0
$8.0
$1.1 $1.2
$4.2 $3.3 $4.0 $5.0
$1.2
$5.6
$29.5
$3.5
$12.1
$3.8
$6.4
Council& MayorAdministrativeServicesHumanResourcesFinanceCity AttorneyCommunityDevelopmentCommunity &Human ServicesJail - SCOREPolicePublicWorksParks, Arts& RecreationStreetsNon-Departmental$0
$5
$10
$15
$20
$25
$30
$35
$40
Millions2021
Budget
2021
Actuals
(Favorable)
2021
Actuals
(Unfavorable)
General Fund Expenditures by Department
(Through December 2021)
Page 1
Quarterly Financial Report Through December 2021 2
General Fund 2020
Summary of Sources and Uses Annual YE YE YE
Budget Budget Actual Actual Amount
Operating Revenues
Property Tax 6 22,842,300$ 22,842,300$ 23,234,591$ 22,445,340$ 392,291$ 1.7 %
Retail Sales Tax 3, 6-8 16,947,000 16,947,000 21,602,471 18,855,889 4,655,471 27.5 %
Affordable Housing Sales Tax Credit 123,700 123,700 155,794 149,445 32,094 25.9 %
Sales Tax - Pierce County Parks 99,700 99,700 129,875 111,038 30,175 30.3 %
Criminal Justice Sales Tax 2,034,000 2,034,000 2,614,952 2,265,134 580,952 28.6 %
Brokered Natural Gas Tax 130,000 130,000 151,567 151,369 21,567 16.6 %
City Utilities Tax 3, 8-10 6,471,400 6,471,400 6,372,408 4,540,292 (98,992)(1.5)%
Admissions Tax 10 320,000 320,000 169,752 209,091 (150,248)(47.0)%
Electric Tax 8-10 3,723,200 3,723,200 3,790,297 4,206,456 67,097 1.8 %
Natural Gas Tax 8-10 1,116,900 1,116,900 1,082,748 1,254,700 (34,152)(3.1)%
Cable Franchise Fee 876,900 876,900 912,416 902,977 35,516 4.1 %
Cable Utility Tax 960,000 960,000 962,553 1,149,682 2,553 0.3 %
Cable Franchise Fee - Capital 60,000 60,000 57,104 61,346 (2,896)(4.8)%
Telephone Tax 8-10 765,400 765,400 679,925 1,122,804 (85,475)(11.2)%
Solid Waste Tax (external)8-10 112,500 112,500 196,733 231,046 84,233 74.9 %
Leasehold Excise Tax 210,000 210,000 222,050 224,090 12,050 5.7 %
Gambling Excise Tax 11 307,000 307,000 124,965 109,986 (182,035) (59.3)%
Taxes sub-total 57,100,000$ 57,100,000$ 62,460,200$ 57,990,683$ 5,360,200$ 9.4 %
Business License Fees 11-12 385,400$ 385,400$ 424,315$ 353,802$ 38,915$ 10.1 %
Building Permits 12-13 858,400 858,400 1,293,979 835,588 435,579 50.7 %
Other Licenses & Permits 785,600 785,600 1,218,809 897,189 433,209 55.1 %
Intergovernmental (Grants, etc.)4, 14 5,927,620 5,927,620 6,589,515 10,223,904 661,895 11.2 %
Charges for Services:15-17
General Government Services 15 3,474,060 3,474,060 3,329,054 2,971,348 (145,006)(4.2)%
Public Safety 15 929,900 929,900 1,270,737 1,109,581 340,837 36.7 %
Development Services Fees 15-16 896,100 896,100 1,626,502 955,824 730,402 81.5 %
Culture and Recreation 15-17 2,282,630 2,282,630 2,339,300 1,638,185 56,670 2.5 %
Fines and Penalties 17-18 722,200 722,200 434,042 635,209 (288,158) (39.9)%
Fees/Charges/Fines sub-total 16,261,910$ 16,261,910$ 18,526,253$ 19,620,631$ 2,264,343$ 13.9 %
Interest and Investment Earnings 19 138,800$ 138,800$ 95,542$ 506,385$ (43,258)$ (31.2)%
Rents and Leases 19 924,700 924,700 1,127,408 432,432 202,708 21.9 %
Contributions and Donations 19 28,000 28,000 31,182 30,945 3,182 11.4 %
Other Miscellaneous 19 217,800 217,800 241,751 200,414 23,951 11.0 %
Transfers In 1,595,900 1,595,900 1,538,372 2,081,527 (57,528)(3.6)%
Insurance Recoveries - Capital & Operating 100,000 100,000 406,067 189,322 306,067 306.1 %
Other Revenues sub-total 3,005,200$ 3,005,200$ 3,440,323$ 3,441,025$ 435,123$ 14.5 %
Total Operating Revenues 76,367,110$ 76,367,110$ 84,426,776$ 81,052,339$ 8,059,666$ 10.6 %
Operating Expenditures
Council & Mayor 1,372,602$ 1,372,602$ 1,130,366$ 950,412$ 242,236$ 17.6 %
Administration 1,302,028 1,302,028 1,195,017 3,408,641 107,011 8.2 %
Human Resources 1,981,431 1,981,431 1,745,216 1,598,724 236,215 11.9 %
Municipal Court & Probation 3,160,261 3,160,261 2,473,775 2,675,734 686,486 21.7 %
Finance 3,833,612 3,833,612 3,342,944 3,086,689 490,668 12.8 %
City Attorney 4,624,809 4,624,809 3,959,192 2,360,532 665,617 14.4 %
Community Development 5,435,908 5,435,908 4,970,932 4,294,915 464,976 8.6 %
Community & Human Services (Comm Devel)1,294,797 1,294,797 1,188,683 992,927 106,114 8.2 %
Jail - SCORE 5,851,600 5,851,600 5,583,799 4,565,099 267,801 4.6 %
Police 31,522,421 31,522,421 29,535,230 28,456,544 1,987,191 6.3 %
Public Works 3,529,062 3,529,062 3,450,243 3,628,787 78,819 2.2 %
Parks, Arts & Recreation 14,307,108 14,307,108 12,050,998 10,770,987 2,256,110 15.8 %
Streets 3,992,068 3,992,068 3,786,304 3,546,286 205,764 5.2 %
Non-Departmental 7,971,570 7,971,570 6,449,917 2,750,054 1,521,653 19.1 %
Total Operating Expenditures 90,179,277$ 90,179,277$ 80,862,617$ 73,086,331$ 9,316,660$ 10.3 %
Page
Ref
2021 2021 YE Budget vs. Actual
Favorable (Unfavorable)
Percentage
Page 2
Quarterly Financial Report Through December 2021 3
Executive Summary
This report provides an overview of the City’s overall financial position for the fiscal period ending
December 31, 2021, reflecting financial data available as of February 10, 2022.
General Fund:
Due to the COVID-19 pandemic, some General Fund revenues were lower than the pre-
pandemic levels. During 2021, various restrictions were implemented at the state and local level
in terms of occupancy limits, vaccination requirements, and mask mandates, all of which are
thought to have either directly or indirectly affected the local economy.
In late March, both King and Pierce counties advanced to Phase III of the state’s Healthy
Washington Roadmap to Recovery plan. Phase III allowed businesses to have indoor dining
occupancy up to 50%; retail, fitness and competitive sports at 50% occupancy; and indoor
entertainment venues like theaters, concerts, museums, bowling alleys, cardrooms, zoos, etc.
were allowed to reopen with restrictions. At the end of June, Washington state reopened under
the Washington Ready plan. Industry sectors previously covered by the Roadmap to Recovery or
the Safe Start plan (with limited exceptions) were allowed to return to usual capacity and
operations. Throughout the third quarter of 2021, businesses were able to resume normal
operations but some businesses continued to have modified hours and/or capacity restrictions.
Effective in October 2021, all restaurants in King County were to require indoor dining patrons to
show proof of vaccination. The indoor mask mandate also continued throughout Q4-2021.
Note: In 2020 to help close the revenue gap due to the COVID-19 pandemic, the City
implemented several short-term policy changes in 2020. All of those policy changes were
discontinued in 2021.
Overall, General Fund revenues collected through Q4-2021 totaled $84.4 million as compared to
a year end budget of $76.4 million, and were $8.1 million, or 10.6% above budget expectations.
Notable variances to the 2021 budget include:
Retail Sales Tax: The sales tax report through December 2021 (which is provided as
an attachment to this report) reflects amounts remitted to the City of Auburn based on
sales from November 2020 through October 2021. Total retail sales tax revenue
collected through December 2021 totaled $21.6 million and was $4.7 million, or
27.5%, above budget. Collections in 2021 were $2.7 million, or 14.6%, more than what
was collected in 2020. The retail trade, automotive, and the services categories
reported the highest increases in sales in 2021. [pages 6-8]
In 2021, City Council increased the City utility tax rate from 7.0% to 10.0%. 1.0% of
utility tax revenue continued to support the Arterial Street Preservation Fund while this
change increased General Fund tax revenues for Water, Sewer, Storm and Solid Waste
services from the previous 6.0% to 9.0%. City utility tax revenues through Q4-2021 were
$0.1 million unfavorable to budget although they were $1.8 million higher than what was
collected in 2020. [pages 8-10]
Building permit revenues collected in 2021 totaled $1.3 million and were $436,000, or
50.7%, above budget. There were four significant commercial projects in the City that
contributed to higher-than-anticipated revenues this year, including the replacement of
two elementary schools. The total number of building permits issued in 2021 totaled
515, which is 40 more (8.4%) than the number issued in 2020. [pages 12-13]
Page 3
Quarterly Financial Report Through December 2021 4
Intergovernmental revenues collected in 2021 totaled $6.6 million and were $662,000
favorable to budget. The majority of this variance was due primarily to the unbudgeted
receipt of $500,000 in Streamlined Sales Tax mitigation monies. [page 14]
Development services revenues collected in 2021 totaled $1.6 million and were
$730,000 higher than budget. This variance was primarily due to higher than anticipated
revenues received for plan check fees; these totaled $887,000, representing the highest
year of revenues collected since 2015. [pages 15-16]
General Fund expenditures through Q4-2021 totaled $80.9 million compared to a budget of $90.2
million, representing a $9.3 million favorable variance to budget. All departments operated within
their budgets in 2021.
Of this favorable variance to budget, $4.5 million was due to underspends in services and
charges, including charges for 911 services paid to Valley Communications, payments to the King
County District Court for services rendered, reduced expenditures in the Parks Department due to
suspended and/or reduced services due to the pandemic, as well as cost savings in travel
expenditures also due to the pandemic. An additional $4.1 million of the favorable variance was
due to staff vacancies and medical and dental benefit cost savings.
YE Budget
$76.4 M
YE Budget
$90.2 M
YE Actuals
$84.4 M
YE Actuals
$80.9 M
$0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 $75 $80 $85 $90 $95 $100
Revenues
Expenditures
$ Millions
General Fund
Revenues vs. Expenditures Through December 2021
Page 4
Quarterly Financial Report Through December 2021 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 2021, Arterial Street Fund revenues totaled $3.5 million as compared to revenues of $2.6
million in 2020, while expenditures totaled $3.7 million as compared to expenditures of $3.1
million in 2020. [pages 22–23]
Local Street Fund revenues of $1.5 million compare to revenues of $1.9 million in 2020.
Expenditures in 2021 were $1.5 million as compared with $1.2 million in 2020. [pages 24–25]
Lastly, Arterial Street Preservation Fund revenues totaled $3.5 million in 2021. Expenditures
totaled $4.0 million compared to $2.3 million through last year. [pages 26–27]
Enterprise Funds:
The City’s enterprise funds account for operations with revenues primarily provided from user
fees, charges or contracts for services.
The Water Fund ended 2021 with operating income of $4.9 million, approximately $541,000
below the same period last year due to increased expenditures. [page 29]
The Sewer Fund had operating income of $1.1 million in 2021 versus $1.9 million last year.
Increased consumption revenues were offset by interfund utility taxes and increased personnel
costs, leading to a decrease in operating income from 2020. [page 30]
Through December 2021 the Stormwater Fund had operating income of $2.3 million compared
to $3.3 million in 2020; this variance is largely due to increased interfund utility taxes, personnel
costs, fleet and support costs. [page 30]
The Solid Waste Fund had an operating loss of $2.4 million in 2021 compared to a loss of
$114,000 in 2020; higher service revenues were offset by increased payments to the City’s
primary solid waste vendor and interfund utility taxes. [pages 30-32]
The Airport Fund experienced operating income of $347,000 through December 2021,
compared to $604,000 last year. This variance is largely attributable to fuel inventory purchases,
as well as personnel, fleet, and repair and maintenance costs. [page 32]
The Cemetery Fund had operating income of $597,000 in 2021, compared with operating
income of $228,000 last year. This increase in largely attributable to increased sales revenues.
[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 2021. [page 32]
Page 5
Quarterly Financial Report Through December 2021 6
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 2021 totaled $23.2 million as compared to a budget of $22.8 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.
Retail Sales Tax collections through Q4-2021 totaled $21.6 million, representing taxes remitted
to the City of Auburn based on sales from November 2020 through October 2021. Due to the
COVID-19 pandemic, the 2021 retail sales tax revenue projection was reduced to account for
expected business closures and/or occupancy restrictions combined with a slower economy due
to higher than usual unemployment rates. However, due to stronger than anticipated sales in
several categories (including retail trade, automotive and services), sales tax revenues collected
in 2021 were $4.7 million, or 27.5%, higher than budgeted. As depicted on the graphic on the
following page, 2021 sales tax revenues were higher than the prior five years – and, in fact, 2021
sales tax collections were the highest on record for the City of Auburn.
$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
$26.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsProperty Taxes
2021 Budget
2021 YE Actual
2020 Actual
Page 6
Quarterly Financial Report Through December 2021 7
Note: The increase in sales tax revenue from 2018 to 2019 was primarily due to a policy change
whereby sales tax on construction revenue is retained in the General Fund; previously, a portion
was transferred to street funds. 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
$5.0
$10.0
$15.0
$20.0
$25.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsRetail Sales & Use Tax
2021 Budget
2021 YE Actual
2020 Actual
$14.6 $14.9
$15.9
$18.8 $18.9
$21.6
$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
2016 2017 2018 2019 2020 2021MillionsRetail Sales & Use Tax
Actuals
Page 7
Quarterly Financial Report Through December 2021 8
The following table breaks out the City’s retail sales taxes by major business sector.
Citywide retail sales tax revenues collected in 2021 were $2.8 million, or 15.0%, more than
collections in 2020. The greatest year-over-year revenue increases were in the retail trade and
automotive sectors.
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). As noted on
page 3 of this report, Council increased the City utility tax rate from 7.0% to 10.0% effective in
2021. While 1.0% of this tax revenue continues to support the Arterial Street Preservation Fund,
this change increased General Fund tax revenue for Water, Sewer, Storm and Solid Waste
services from the previous 6.0% to 9.0%. Overall, City utility tax revenues collected through
December 2021 were $1.8 million more than what was collected through December 2020. The
year-over-year increase was predominately due to the rate change.
2020 2021
Component Group Actual Actual Amount
Construction 3,068,164$ 3,034,111$ (34,053)$ (1.1)%
Manufacturing 389,637 501,480 111,843 28.7 %
Transportation & Warehousing 197,189 373,108 175,919 89.2 %
Wholesale Trade 1,346,271 1,423,595 77,323 5.7 %
Automotive 3,826,981 4,555,224 728,244 19.0 %
Retail Trade 5,499,535 6,461,966 962,431 17.5 %
Services 4,220,223 4,924,232 704,009 16.7 %
Miscellaneous 307,887 409,506 101,619 33.0 %
YE Total 18,855,888$ 21,683,222$ 2,827,334$ 15.0 %
Comparison of Retail Sales Tax Collections by Group
Through December
Change from 2020
Percentage
Page 8
Quarterly Financial Report Through December 2021 9
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsUtility Tax
2021 Budget
2021 YE Actual
2020 Actual
25
$10.0 $10.2 $9.9
$9.6
$11.4 $12.1
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
2016 2017 2018 2019 2020 2021MillionsUtility Tax Revenues
Actuals
Page 9
Quarterly Financial Report Through December 2021 10
The table below demonstrates the various utility tax revenues and show actual revenues
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 through December 2021 totaled $170,000 and
were $150,000 unfavorable to budget. This is due in part to COVID-19 restrictions, whereby some
entertainment businesses did not reopen until the second quarter of 2021. For example, the
primary remitter of admission tax to the City of Auburn is the Auburn Regal Cinema at the Outlet
Collection mall. The theater was closed during the first quarter of this year, and taxes that were
remitted in the remaining quarters were approximately ½ of the pre-pandemic collection rate.
2020 2021 2021
Utility Tax Type YE Actual YE Budget YE Actual Amount Amount
City Interfund Utility Taxes 4,540,292$ 6,471,400$ 6,372,408$ $ 1,832,116 40.4 % $ (98,992)(1.5)%
Electric 4,206,456 3,723,200 3,790,297 (416,159)(9.9)%67,097 1.8 %
Natural Gas 1,254,700 1,116,900 1,082,748 (171,952)(13.7)%(34,152)(3.1)%
Telephone 1,122,804 765,400 679,925 (442,879)(39.4)%(85,475)(11.2)%
Solid Waste (external)231,046 112,500 196,733 (34,313)(14.9)%84,233 74.9 %
YE Total 11,355,297$ 12,189,400$ 12,122,110$ $ 766,813 6.8 % $ (67,290)(0.6)%
Through December 2021
Utility Tax by Type
2021 vs. 2020 Actual 2021 vs. Budget
Percentage Percentage
$0.0
$100.0
$200.0
$300.0
$400.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsAdmission Tax
2021 Budget
2021 YE Actual
2020 Actual
Page 10
Quarterly Financial Report Through December 2021 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 COVID-19 occupancy limitations, some of
these establishments did not reopen for business until the latter part of Q1-2021 and many
opened at a reduced capacity. While capacity limitations were lifted at the end of Q2, the effects
on these entertainment style activities continue to be evident due to reduced receipts compared
to normal levels.
Licenses and Permits include business licenses, building permits, plumbing, electric and other
licenses and permit fees. Building permit fees and business licenses make up approximately 70%
of the annual budgeted revenue in this category.
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 in January in the current year. Business license revenues collected through Q4-
2021 totaled $424,000 and were $39,000, or 10.1%, favorable to budget.
$0.0
$100.0
$200.0
$300.0
$400.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsGambling Tax
2021 Budget
2021 YE Actual
2020 Actual
Page 11
Quarterly Financial Report Through December 2021 12
Building Permit revenues collected in 2021 totaled $1.3 million and were $436,000 favorable to
budget. A total of 515 building permits were issued in 2021 compared to 475 building permits
issued in 2020, representing an 8.4% increase in permitting volumes. Of the building permit
revenues collected in 2021, 61% were attributable to commercial projects and the remaining 39%
were predominately single-family housing permits.
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsBusiness Licenses
2021 Budget
2021 YE Actual
2020 Actual
$225 $163
$353
$336 $354
$424
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
2016 2017 2018 2019 2020 2021ThousandsBusiness License Revenues
Actuals
Page 12
Quarterly Financial Report Through December 2021 13
There were several large projects that contributed to the building permit revenues in 2021 – most
notably the permitting for the new Logisticenter and Prologis businesses in Auburn. In addition,
2021 included the permitting for the replacement of Lea Hill Elementary School and the
replacement of Chinook Elementary School as well as numerous building permits for Boeing.
There were also dozens of new homes permitted in the City in 2021 including several homes in
North Ridgeview Estates, Forest Glen, Huntington Woods and the Aston Park community. As
depicted in the graphic below, building permit revenues collected in 2021 were the highest seen
since 2016.
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsBuilding Permits
2021 Budget
2021 YE Actual
2020 Actual
$2.0
$1.2
$0.9
$1.2
$0.8
$1.3
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
2016 2017 2018 2019 2020 2021MillionsBuilding Permits
Actuals
Page 13
Quarterly Financial Report Through December 2021 14
Intergovernmental revenues include grants and stimulus monies (direct and indirect federal,
state and local), revenue from the Muckleshoot Indian Tribe (MIT) compact as well as state
shared revenues. Collections through Q4-2021 totaled $6.6 million and were $662,000 favorable
to budget expectations. Most of this favorable variance was due to the unbudgeted receipt of
$500,000 for Streamlined Sales Tax mitigation monies collected in September and December
2021.
2020 2021 2021
Revenue YE Actual YE Budget YE Actual Amount Amount
Federal Grants 4,098,926$ 139,580$ 118,696$ $(3,980,230)(97.1)% $ (20,884)(15.0)%
State Grants 155,813 260,800 88,035 (67,777)(43.5)%(172,765)(66.2)%
Interlocal Grants 468,349 489,840 440,385 (27,964)0.0 %(49,455)(10.1)%
Muckleshoot Casino Services 1,721,249 925,000 1,157,990 (563,259)(32.7)%232,990 25.2 %
One-Time Allocation (SB 5092)0 331,500 331,542 331,542 N/A %42 0.0 %
State Shared Revenues:
Streamlined Sales Tax 494,830 1,000,000 1,500,237 1,005,408 203.2 %500,237 50.0 %
Motor Vehicle Fuel Tax 1,498,329 1,046,300 1,046,790 (451,539)(30.1)%490 0.0 %
Criminal Justice - High Crime 228,428 212,200 250,148 21,720 9.5 %37,948 17.9 %
Criminal Justice - Population 25,601 26,600 27,323 1,722 6.7 %723 2.7 %
Criminal Justice - Special Prog.91,623 97,400 97,288 5,665 6.2 %(112)(0.1)%
Marijuana Excise Tax 172,010 183,600 189,789 17,779 10.3 %6,189 3.4 %
State DUI 11,878 11,800 13,602 1,724 14.5 %1,802 15.3 %
Fire Insurance Tax 85,819 87,500 98,371 12,552 14.6 %10,871 12.4 %
Liquor Excise 515,087 465,500 581,922 66,835 13.0 %116,422 25.0 %
Liquor Profit 655,964 650,000 647,396 (8,568)(1.3)%(2,604)(0.4)%
Total State Shared:3,779,568 3,780,900 4,452,866 673,298 17.8 %671,966 17.8 %
YE Total 10,223,904$ 5,927,620$ 6,589,515$ (3,634,390)$ (35.5)%661,895$ 11.2 %
Through December 2021
Intergovernmental Revenues (Grants, Entitlements & Services)
2021 vs. 2020 Actual 2021 vs. Budget
% Change % Change
$5.7 $6.1 $6.3 $6.0
$10.2
$6.6
$0
$2
$4
$6
$8
$10
$12
2016 2017 2018 2019 2020 2021MillionsIntergovernmental Revenues
(Grants, Entitlements & Services)
Actuals
Page 14
Quarterly Financial Report Through December 2021 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
2021 totaled $8.6 million and was $983,000, or 13.0%, more than budgeted.
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 a portion of those costs are recouped from other
funds via interfund charges. General Government revenues also include revenues for passport
services, reimbursement from cities participating in the South King Housing and Homelessness
Partners (SKHHP), as well as transportation projects. The majority of the unfavorable variance to
budget in the general government category through Q4-2021 was due to a transportation project
that was discontinued and did not result in revenues in 2021.
Public safety revenues mostly consist of revenues for law enforcement services, which are 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 for services rendered. Public safety revenues collected
in 2021 totaled $1.3 million and were $341,000 favorable to budget primarily due to stronger than
anticipated requests for extra duty security services.
Development services fee collections consist primarily of plan check fees, facility extension
charges, and zoning and subdivision fees. Through Q4-2021, development service fees collected
totaled $1.6 million and were $730,000 favorable to budget expectations. This variance was seen
primarily in plan check revenues which generated $887,000 in revenues in 2021 as compared to
$375,000 collected in 2020. The year-over-year increase in plan check revenues represents an
increase of 236%. Plan check revenues in 2021 included plan review revenues for Logisticenter,
Prologis, Boeing, the replacement of Terminal Park Elementary School, Lea Hill Elementary
School and Chinook Elementary School. In addition, there were permits issued for multiple other
commercial projects as well as numerous residential projects including plans for dozens of new
single-family homes in the City.
2020 2021 2021
Revenue YE Actual YE Budget YE Actual Amount Amount
General Government 2,971,348$ 3,474,060$ 3,329,054$ $ 357,706 12.0 % $ (145,006)(4.2)%
Public Safety 1,109,581 929,900 1,270,737 161,156 14.5 %340,837 36.7 %
Development Services 955,824 896,100 1,626,502 670,678 70.2 %730,402 81.5 %
Culture & Recreation 1,638,185 2,282,630 2,339,300 701,115 42.8 %56,670 2.5 %
YE Total 6,674,939$ 7,582,690$ 8,565,593$ 1,890,654$ 28.3 % $ 982,903 13.0 %
Through December 2021
Charges for Services by Type
2021 vs. 2020 Actual 2021 vs. Budget
Percentage Percentage
Page 15
Quarterly Financial Report Through December 2021 16
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.
Overall, these revenues exceeded budget by $57,000, or 2.5%. Of revenues collected in 2021,
nearly all revenues related to recreation classes, cultural arts, theater and special events
performed unfavorably to budget; these variances were offset by positive variances in green fee
revenues collected at the Auburn Golf Course, which totaled $1.5 million and were $350,000
higher than budgeted. A number of factors contributed to lower-than-expected revenues within
this category, including the COVID-19 pandemic (where many of these activities were halted
and/or modified during 2021) as well as a large fire occurred in July to a mixed-use building on
Main Street, affecting the Auburn Avenue Theatre. The theater was eventually “red tagged” in
December due to unsafe conditions and continues to be closed for business.
$1.0
$0.9 $0.9
$1.1
$1.0
$1.6
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
2016 2017 2018 2019 2020 2021MillionsDevelopment Service Fees
Actuals
Page 16
Quarterly Financial Report Through December 2021 17
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 2021
totaled $434,000 as compared to a budget of $722,000 and were 39.9% below budget
expectations primarily due to lower-than-budgeted collections in civil infraction penalties and
parking infractions.
$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
$2.8
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsCulture & Recreation
2021 Budget
2021 YE Actual
2020 Actual
2020 2021 2021
Month YE Actual YE Budget YE Actual Amount Amount
Civil Penalties 22,436$ 25,200$ 20,090$ $ (2,346)(10.5)% $ (5,110)(20.3)%
Civil Infraction Penalties 270,885 412,000 194,953 (75,932)(28.0)%(217,047)(52.7)%
Redflex Photo Enforcement 1,411 0 3,413 2,001 141.8 %3,413 N/A %
Parking Infractions 69,073 120,000 78,685 9,611 13.9 %(41,315)(34.4)%
Criminal Traffic Misdemeanor 26,197 40,000 36,173 9,976 38.1 %(3,827)(9.6)%
Criminal Non-Traffic Fines 23,752 31,000 20,127 (3,625)(15.3)%(10,873)(35.1)%
Criminal Costs 19,547 12,000 25,675 6,128 31.4 %13,675 114.0 %
Non-Court Fines & Penalties 201,907 82,000 54,925 (146,982)(72.8)%(27,075)(33.0)%
YE Total 635,209$ 722,200$ 434,042$ $ (201,168)(31.7)% $ (288,158)(39.9)%
Through December 2021
Fines & Penalties by Type
2021 vs. 2020 Actual 2021 vs. Budget
Percentage Percentage
Page 17
Quarterly Financial Report Through December 2021 18
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
$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
2021 Budget
2021 YE Actual
2020 Actual
24
25
$0.9 $0.9 $0.9 $0.9
$0.6
$0.4
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
2016 2017 2018 2019 2020 2021MillionsFines & Penalties
Actuals
Page 18
Quarterly Financial Report Through December 2021 19
Miscellaneous Revenues consist of investment earnings, income from facility rentals, revenue
collected for 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 2021 in this category totaled $1.5 million and were $187,000 favorable to
budget. The majority of the favorable variance to budget was in the rents and leases category,
largely due to increased revenues collected for golf cart rentals.
2020 2021 2021
Month YE Actual YE Budget YE Actual Amount Amount
Interest & Investments 506,385$ 138,800$ 95,542$ (410,843)$ (81.1)%(43,258)$ (31.2)%
Rents & Leases 432,432 924,700 1,127,408 694,976 160.7 %202,708 21.9 %
Contributions & Donations 30,945 28,000 31,182 238 0.8 %3,182 11.4 %
Other Miscellaneous Revenue 200,414 217,800 241,751 41,337 20.6 %23,951 11.0 %
YE Total 1,170,176$ 1,309,300$ 1,495,884$ 325,708$ 27.8 %186,584$ 14.3 %
Miscellaneous Revenues by Type
Through December 2021
2021 vs. 2020 2021 vs. Budget
Percentage Percentage
19
20
21
22
23
24
25
$1.2
$1.5
$1.8 $1.8
$1.2
$1.5
$0.0
$0.5
$1.0
$1.5
$2.0
2016 2017 2018 2019 2020 2021MillionsMiscellaneous Revenues
Actuals
Page 19
Quarterly Financial Report Through December 2021 20
Real Estate Excise Tax (REET) revenues are taxes on the sale of both commercial properties
and single-family residences, and are receipted into the Capital Improvement Projects Fund and
used for governmental capital projects. REET revenues collected in 2021 totaled $6.0 million,
exceeding budget expectations by $4.0 million. Sales activity in the fourth quarter of 2021
included the sale of numerous commercial businesses such as a large condo complex, a mobile
home park, multiple industrial properties, warehouses, several multifamily properties, vacant land,
and numerous single-family homes. REET revenue collections in 2021 were the highest on
record for the City of Auburn.
2020 2021 2021
Month Actual Budget Actual Amount Amount
Jan 214,936$ 162,000$ 328,140$ 113,204$ 52.7 % 166,140$ 102.6 %
Feb 455,986 162,000 244,189 (211,797) (46.4) % 82,189 50.7 %
Mar 214,029 162,000 423,532 209,502 97.9 % 261,532 161.4 %
Apr 273,949 162,000 385,966 112,017 40.9 % 223,966 138.3 %
May 245,815 162,000 339,074 93,259 37.9 % 177,074 109.3 %
Jun 288,495 162,000 447,063 158,568 55.0 % 285,063 176.0 %
Jul 392,753 162,000 563,422 170,669 43.5 % 401,422 247.8 %
Aug 368,252 162,000 585,227 216,975 58.9 % 423,227 261.3 %
Sep 346,819 162,000 946,209 599,390 172.8 % 784,209 484.1 %
Oct 444,623 162,000 393,570 (51,053) (11.5) % 231,570 142.9 %
Nov 439,428 162,000 474,992 35,564 8.1 % 312,992 193.2 %
Dec 554,308 162,500 825,919 271,611 49.0 % 663,419 408.3 %
YE Total 4,239,394$ 1,944,500$ 5,957,304$ 1,717,910$ 40.5 % 4,012,804$ 206.4 %
Real Estate Excise Tax Revenues
December 2021
2021 vs. 2020 2021 vs. Budget
Percentage Percentage
17
18
19
20
21
22
23
24
25
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
$5.5
$6.0
$6.5
$7.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsReal Estate Excise Tax
2021 Budget
2021 YE Actual
2020 Actual
Page 20
Quarterly Financial Report Through December 2021 21
1
2
3
4
5
6
23
24
$4.3
$3.6 $3.8
$5.2
$4.2
$6.0
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
2016 2017 2018 2019 2020 2021MillionsReal Estate Excise Tax Revenues
Actuals
Page 21
Quarterly Financial Report Through December 2021 22
Street Funds
This section provides a financial overview of the City’s three street funds for the period ending
December 30, 2021. The City’s street funds are 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, 2021 there were 20 separate street
projects budgeted in this fund.
Revenues collected in 2021 totaled $3.5 million as compared to 2020collections of $2.6 million.
Total expenditures in 2021 were $3.7 million compared to $3.1 million last year. Variances in
revenues and expenditures are largely due to the timing of capital expenditures and any
subsequent reimbursement via grants and/or operating transfers. Expenditure timing is generally
determined by the current phase of each individual capital project; expenditures tend to increase
as projects move from design phase into construction.
Fund 102 - Arterial Street 2020
Summary of Sources and Uses 2021 2021 YE 2021 YE 2020 YE
Report Period: December 2021 Budget Budget Actual Actual Amount
Revenues
Federal Grants 3,713,508$ 3,713,508$ 1,170,024$ 292,049$ (2,543,484)$ (68.5)%
State And Local Grants 419,980 419,980 34,417 30,020 (385,563) (91.8)%
Motor Vehicle Fuel and Multimodal Taxes 620,000 620,000 641,460 111,399 21,460 3.5 %
Miscellaneous Revenue 700,000 700,000 982,046 194,065 282,046 40.3 %
Operating Transfer In 3,296,915 3,296,915 688,073 1,953,492 (2,608,842) (79.1)%
Investment Income 6,200 6,200 1,302 7,660 (4,898) (79.0)%
Total Revenues 8,756,603$ 8,756,603$ 3,517,323$ 2,588,685$ (5,239,280)$ (59.8)%
Expenditures
Salary and Benefits 350,000$ 350,000$ 549,996$ 531,846$ (199,996)$ (57.1) %
Capital Outlay 9,577,598 9,577,598 2,775,327 2,083,399 6,802,271 71.0 %
Subtotal - Capital Project Expenditures 9,927,598 9,927,598 3,325,323 2,615,245 6,602,275 66.5 %
Services and Charges 280,000 280,000 129,884 173,854 150,116 53.6 %
Interfund Payments for Services 69,050 69,050 69,050 80,100 (0) (0.0) %
Debt Service Principal and Interest 206,900 206,900 206,733 207,428 167 0.1 %
Operating Transfer Out - - - - -
Total Expenditures 10,483,548$ 10,483,548$ 3,730,990$ 3,076,626$ 6,752,558$ 64.4 %
Net Change in Fund Balance (1,726,945)$ (1,726,945)$ (213,667)$ (487,941)$ 1,513,278$ 87.6 %
Beg. Fund Balance, January 2021 2,284,075$
Net Change in Fund Balance, December 2021 (213,667)
Ending Fund Balance, December 2021 2,070,408$
2021 Budgeted Ending Fund Balance 557,130$
2021 2021 YE Budget vs. Actual
Favorable (Unfavorable)
Percentage
Page 22
Quarterly Financial Report Through December 2021 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 2021
portion of each project’s budget and year-to-date expenditures.
Name 2021 Budget YE Actual Remaining
AWS Improvements - Hemlock St SE to Poplar St SE $2.1M $0.2M $1.9M
F Street SE Non-Motorized Improvements $1.4M $1.1M $0.3M
Signal Replacement at Auburn Way N. and 1st St. NE $1.1M $0.4M $0.7M
All Other Projects (17 Others Budgeted)$5.4M $1.6M $3.7M
Total $9.9M $3.3M $6.6M
*Components may not sum to total due to rounding.
Fund 102 - Arterial Street
Capital Projects Status *
Page 23
Quarterly Financial Report Through December 2021 24
Fund 103 – Local Street Fund
The Local Street Fund is a special revenue fund used for local street repair. The fund is currently
funded by interfund transfers on a project-reimbursement basis; in 2019 and 2020, it was funded
at a specific annual amount by real estate excise tax (REET 2). Expenditures through December
2021 were $1.5 million as compared to expenditures of $1.2 million through the fourth quarter of
2020. Highlighted in the table below and shown in the following graph are the fund’s total
expenditures related to capital projects.
Fund 103 - Local Street Fund 2020
Summary of Sources and Uses 2021 2021 YE 2021 YE 2020 YE
Report Period: December 2021 Budget Budget Actual Actual Amount
Revenues
Operating Transfer In 2,350,000 2,350,000 1,539,177$ 1,900,000 (810,823) (34.5) %
Interest Earnings 10,600 10,600 3,341$ 10,301 (7,259) (68.5) %
Total Revenues 2,360,600$ 2,360,600$ 1,542,518$ 1,910,301$ (818,082)$ (34.7) %
Expenditures
Capital Salary and Benefits 235,000 235,000 99,955 120,657 135,045 57.5 %
Capital Outlay 3,372,269 3,372,269 1,361,612 1,016,935 2,010,657 59.6 %
Subtotal - Capital Project Expenditures 3,607,269 3,607,269 1,461,568 1,137,592 2,145,701 59.5 %
Admin Salary and Benefits - - - 19,745 -$
Admin Services and Charges 700 700 - 361 700 100.0 %
Interfund Payments for Services 13,250 13,250 13,250 15,600 (0) (0.0) %
Total Expenditures 3,621,219$ 3,621,219$ 1,474,818$ 1,173,297$ 2,146,401$ 59.3 %
Net Change in Fund Balance (1,260,619)$ (1,260,619)$ 67,700$ 737,004$ 1,328,319$ 105.4 %
Beg. Fund Balance, January 2021 3,288,572$
Net Change in Fund Balance, December 2021 67,700
Ending Fund Balance, December 2021 3,356,273$
2021 Budgeted Ending Fund Balance 2,027,953$
2021 2021 YE Budget vs. Actual
Favorable (Unfavorable)
Percentage
Page 24
Quarterly Financial Report Through December 2021 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 2021
portion of each project’s budget and year-to-date expenditures.
Name 2021 Budget YE Actual Remaining
2021 Local Street Preservation $2.5M $1.4M $1.2M
Lead Service Line Replacement $0.8M $0.1M $0.7M
2022 Local Street Preservation $0.2M $0.0M $0.1M
All Other Projects (2 Others Budgeted)$0.1M $0.0M $0.1M
Total $3.6M $1.5M $2.1M
*Components may not sum to total due to rounding.
Fund 103 - Local Street
Capital Projects Status*
Page 25
Quarterly Financial Report Through December 2021 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
was transfers-in of REET 2 revenues while the 1.0% utility tax was retained in the General Fund.
Major projects budgeted within the Arterial Street Preservation Fund in 2021 include 4th Street SE
Preservation, Lakeland Hills Way Preservation, and AWN Preservation Phase 2 (8th Street SE to
22nd). Through December 2021, revenues totaled $3.5 million, which is significantly higher than
the same period in 2020. This is primarily due to the change in funding source, which resulted in
artificially low revenues in the fund. Revenues and expenditures also fluctuate due to the timing
associated with construction projects and their subsequent cost reimbursements from grants and
transfers-in.
Expenditures through December 2021 totaled $4.0 million as compared to $2.3 million through
December 2020. Historically, the majority of this fund’s expenditures occur in the second half of
each year due to the weather sensitivity of pavement construction (this work needs to be done
primarily in the summer and early fall). Highlighted in the table below and shown in the following
graph are the fund’s total expenditures related to capital projects.
Fund 105 - Arterial Street Preservation 2020
Summary of Sources and Uses 2021 2021 YE 2021 YE 2020 YE
Report Period: December 2021 Budget Budget Actual Actual Amount
Revenues
City Utility Tax 725,100$ 725,100$ 708,045$ 0$ (17,055)$ (2.4) %
Electric Utility Tax 744,600 744,600 758,059 0 13,459 1.8 %
Natural Gas Utility Tax 223,400 223,400 216,550 - (6,850) (3.1) %
Cable TV Tax 175,400 175,400 192,511 (0) 17,111 9.8 %
Telephone Utility Tax 153,100 153,100 135,985 0 (17,115) (11.2) %
Garbage Utility Tax (External Haulers)18,800 18,800 32,789 - 13,989 74.4 %
Grants 5,016,622 5,016,622 1,032,754 741,557 (3,983,868) (79.4) %
Operating Transfer In 437,946 437,946 437,946 2,142,224 - 0.0 %
Interest Earnings 12,400 12,400 2,742 7,297 (9,658) (77.9) %
Total Revenues 7,507,368$ 7,507,368$ 3,517,380$ 2,891,078$ (3,989,988)$ (53.1) %
Expenditures
Salary and Benefits 188,000$ 188,000$ 481,007$ 546,715$ (293,007)$ (155.9) %
Capital Outlay 9,143,141 9,143,141 3,393,360 1,734,348 5,749,781 62.9 %
Subtotal - Capital Project Expenditures 9,331,141 9,331,141 3,874,368 2,281,063 5,456,773 58.5 %
Supplies - - - - -
Services and Charges 51,000 51,000 22,365 985 28,635 56.1
Operating Transfer Out 68,500 68,500 68,500 - - 0.0
Total Expenditures 9,450,641$ 9,450,641$ 3,965,233$ 2,282,047$ 5,485,408$ 58.0 %
Net Change in Fund Balance (1,943,273)$ (1,943,273)$ (447,853)$ 609,031$ 1,495,420$ 77.0 %
Beg. Fund Balance, January 2021 3,385,926$
Net Change in Fund Balance, December 2021 (447,853)
Ending Fund Balance, December 2021 2,938,073$
2021 Budgeted Ending Fund Balance 1,442,653$
2021 2021 YE Budget vs. Actual
Favorable (Unfavorable)
Percentage
Page 26
Quarterly Financial Report Through December 2021 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 2021
portion of each project’s budget and year-to-date expenditures.
Fund 105 - Arterial Street Preservation
Capital Projects Status*
Name 2021 Budget
YE
Actual Remaining
4th Street SE Preservation $1.9M $0.2M $1.7M
Lakeland Hills Way Preservation $1.5M $1.3M $0.2M
AWN Preservation Phase 2 - 8th St SE to 22nd $1.4M $0.6M $0.8M
All Other Projects (11 Others Budgeted) $4.5M $1.7M $2.8M
Total $9.3M $3.9M $5.5M
*Components may not sum to total due to rounding.
Page 27
Quarterly Financial Report Through December 2021 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.
In 2021, the City received $2.9 million in mitigation and impact revenues, largely driven by
commercial transportation impact fees paid for by two large warehouses. As a result, revenues
exceeded budget, while expenditures were significantly below budget due to the timing of multiple
capital projects funded by mitigation and/or impact fee revenues.
Fund 124 - Mitigation Fees
Summary of Sources and Uses
Report Period Through:Ending Ending
December 2021 Fund Balance Fund Balance
Transportation Impact Fees 818,000$ 3,037,315$ 5,565,242$ 2,422,971$ 628,473$ 9,579,055$
Traffic Migitation Fees - 100,000 37,806 - - 137,806
Fire Impact Fees 148,300 550,000 178,530 122,193 550,000 152,423
Fire Mitigation Fees - - 81 - - 81
Parks Impact Fees 158,500 3,970,422 1,726,858 322,000 285,974 5,574,806
Parks Mitigation Fees - - 186,352 - - 186,352
School Impact Admin Fees 5,600 - 94,816 5,876 - 95,092
Wetland Mitigation Fees - 36,600 36,272 - - 72,872
Interest and Investment Income 87,160 - 87,160 14,945 - 14,945
Fees in Lieu of Improvements - - 27,128 - - 27,128
Permit Processing Fees - 44,200 (44,200) - - -
Total 1,217,560$ 7,738,537$ 7,896,045$ 2,887,985$ 1,464,447$ 15,840,560$
Beginning Fund Balance, January 2021 14,417,022$
Net Change in Fund Balance, December 2021 1,423,538
Estimated Ending Fund Balance, December 2021 15,840,560$
2021 Budgeted Ending Fund Balance 7,896,045$
BUDGET YE Actuals
Revenues Expenditures Revenues Expenditures
Page 28
Quarterly Financial Report Through December 2021 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.
Through December 2021 the Water Utility had operating income of $4.9 million (operating
revenues less operating expenditures), approximately $541,000 below the same period last year.
Water Fund operating revenues were $801,000 or 6.6% higher than 2020; the majority of this
variance was due to stronger performance in water sales revenue, which was offset by lower
interest and other earnings. Operating expenditures increased by $1.3 million mainly due to an
increase of the City utility interfund tax rate from 7% to 10%, increased debt service payments,
higher personnel costs, and increased interfund service charges.
Billable water consumption through December 2021 totaled 3.0 million hundred cubic feet (ccf),
an increase of 95,000 ccf (3.3%) over last year. With the exception of manufacturing and
wholesale, all customer classes saw an increase in consumption compared to last year.
There is also 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.
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Quarterly Financial Report Through December 2021 30
Through December 2021, the Sewer Utility finished with operating income of $1.1 million as
compared to $1.9 million through December 2020. Operating revenues were up $362,000 or
4.2% from last year due to stronger performance in charges for City sewer service. Operating
expenses were up $1.1 million due to an increase in the City interfund utility tax rate, as well as
increased personnel and interfund service costs.
Year-to-date billable consumption by volume was up 85,000 ccf, or 5.6% from 2020 due to
increases in commercial consumption, which was previously impacted by severe COVID-19
mitigation efforts that have been relaxed (but not eliminated) in 2021.
Through December 2021, the Stormwater Utility had operating income of $2.3 million compared
with $3.3 million in the same last year. Operating revenues were up $178,000 compared to 2020
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 up $1.1 million compared to 2020. This
increase was mainly due to the interfund the utility tax rate increase, as well as increased
personnel costs, fleet and support charges.
Prior to October 2021, the City of Auburn’s Solid Waste Utility services had been outsourced to
Waste Management and to Republic Services, who managed the contract for the annexed areas.
Beginning in October 2021, all of the City’s solid waste services are handled by Waste
Management based on a newly-signed contract.
Through December 2021, the Solid Waste Utility Fund experienced an operating loss of $2.4
million. In 2020, both revenues and expenditures were low compared to prior years, with 2021
returning to expected levels of service. Operating revenues have increased by $515,000
compared to last year, while operating expenditures have increased by $2.8 million.
The majority of the revenue increase is attributable to a higher volume of services provided
compared to the previous year. Expenditures increased due to higher payments to the City’s solid
waste vendor following implementation of the new contract, as well as the increased interfund
utility tax rate.
The current mix of solid waste customer account types (rounded) is:
90.7% Residential
7.6% Commercial
1.7% 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 December 2021, the total diversion
rate was 27.4%, which represents a total of 19,100 tons of waste that was diverted from landfills.
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Quarterly Financial Report Through December 2021 31
2021 Tons Collected and Diversion Rates
Of the total tonnage collected through December 2021, 34% was from residential customers,
15% from multifamily customers, and 51% from commercial customers, as shown below:
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Quarterly Financial Report Through December 2021 32
Through December 2021, the Airport Fund had operating income of $347,000 as compared with
operating income of $604,000 in 2020. Operating revenues in the Airport Fund were $85,000
more than last year due to increased revenues from aviation fuel sales and property leases.
Operating expenditures in the Airport Fund were $343,000 more than the same period of last
year. Much of this variance consisted of fuel inventory expenses, but also included increased
personnel costs, repairs and maintenance, and fleet costs.
In 2021, the Cemetery Fund realized net operating income of $597,000 as compared with
operating income of $228,000 in 2020. Total sales revenues were up $443,000, or 28.7%, from
2020 due to significant increases in lot sales, markers, and openings and closings. Operating
expenditures were up $72,000 or 5.5% from last year due mostly to inventory and grounds
maintenance purchases, as well as increased personnel costs.
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.
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Quarterly Financial Report Through December 2021 33
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.
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