HomeMy WebLinkAboutQ2 2022 Financial ReportAGENDA BILL APPROVAL FORM
Agenda Subject:
Q2 2022 Financial Update
Date:
September 7, 2022
Department:
Finance
Attachments:
Financial Report Through June 2022
Monthly Sales Tax Report
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrative Recommendation:
For discussion only.
Background for Motion:
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
year-to-date financial activity through June 30,2022, based on financial data available as of
August 31, 2022. Sales tax information represents tax collected through June 2022, reflecting
business activity through April 2022.
Reviewed by Council Committees:
Councilmember:Baggett Staff:Thomas
Meeting Date:September 12, 2022 Item Number:
Quarterly Financial Report Through June 2022
General Fund Summary
Quarterly Financial Report Through June 2022 2
Quarterly Financial Report Through June 2022 3
Executive Summary
This report provides an overview of the City’s overall financial position for the fiscal period ending
June 30, 2022, reflecting financial data available as of August 31, 2022.
General Fund:
General Fund revenues have generally exceeded budget expectations and largely recovered
from the impact of the COVID-19 mitigation measures. 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 of 2021, 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 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, and 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. In the state’s reopening plan, the state moved towards a county-based
system and away from the regional system. In this new plan, the assessment of counties will be
conducted on an individual basis. In March 2022, the mask mandate was lifted in many indoor
public settings. As a result, collections on numerous culture and recreation revenues are slowly
returning to pre-pandemic amounts.
Overall, General Fund revenues collected through Q2-2022 totaled $44.1 million as compared to
a year-to-date budget of $40.0 million, and were $4.0 million, or 10.0% above budget
expectations.
Notable variances to the 2022 budget include:
•Retail Sales Tax: The sales tax report through Q2-2022 (which is provided as an
attachment to this report) reflects amounts remitted to the City of Auburn based on
sales from November 2021 through April 2022. Collections up to June 2022 totaled
$11.1 million, a 6.8% increase from last year. The increase resulted from multiple
categories, particularly manufacturing, in which The Boeing Company had a 488%
increase from April 2021 compared to April 2022. [pages 6-7]
•In 2021, City Council increased the City utility tax rate from 7.0% to 10.0%. 1.0% of
utility tax revenue continues 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 Q2-
2022 were $93,016 favorable to budget and $994,498 higher than what was collected
through Q2-2021. [pages 8-10]
•Building permit revenues collected through Q2-2022 totaled $477,000, which was
92,000 favorable to the year-to-date budget. A contributor to this variance was the
permitting of Divine Court, a 7-story multi-use building on Main Street. [page 13]
Quarterly Financial Report Through June 2022 4
•Intergovernmental revenues collected through Q2-2022 totaled $2.6 million and were
$266,000 unfavorable to budget. Lower revenues collected from Federal and State
grants negatively impact the overall variance. [page 13-14]
•Culture and Recreation revenues collected through Q2-2022 totaled $1.4 million and
were $281,000 higher than budget expectations. This variance was primarily due to
higher than anticipated revenues received for green fees at Auburn Golf Course and
recreational classes. Where 50% of the favorable variance results from the Auburn Golf
Course and 26% consists of recreational classes. [page 16-17]
General Fund expenditures through Q2-2022 totaled $38.4 million compared to a budget of $44.5
million, representing a $6.0 million favorable variance to budget. Almost all departments operated
within their budgets through the second quarter of 2022.
Of this favorable variance to budget, 55% of that is comprised of underspends in supplies and
professional services, while 40% was due to underspends in personnel costs.
Quarterly Financial Report Through June 2022 5
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 Q2-2022 with operating income of about $1.5 million, which was
approximately $225,000 above the same period last year due to decrease in expenditures from
Q2-2021. This decrease was driven by lower debt service interest. Revenues were higher in
rents, leases, concessions, and charges for service. [page 21-22]
The Sewer Fund had operating income of $706,000 versus $509,000 in the same period last
year. Increased consumption revenues were offset by higher expenditures, similar to the Water
Fund. [page 22]
Through June 2022 the Stormwater Fund had operating income of $1.3 million compared to
$1.1 million in the same period in 2021; the increase in revenues from charges for storm service
more than offset the increased expenditures due to higher interfund utility taxes. [page 22]
Internal Service Funds:
Internal service funds provide services to other City departments and include functions such as
Insurance, Worker’s Compensation, Facilities, Innovation & Technology, and Equipment Rental.
No significant variances were reported in these funds during Q2-2022. [page 22]
Quarterly Financial Report Through June 2022 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 the second quarter totaled $11.5 million as compared to a second
quarter budget of $11.1 million. Year-to-date collections total $12.6 million versus a budget of
$12.1 million resulting in ~$500k above budget expectations. As depicted in the graphic below,
the majority of property taxes are collected during the months of April and October, coinciding
with the due dates for the County property tax billings.
Retail Sales Tax collections through Q2-2022 totaled $11 million, representing taxes remitted to
the City of Auburn based on sales from November 2021 through April 2022. Despite the COVID-
19 pandemic, 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. Sales tax revenues in the
second quarter of 2022 exceed those from the second quarter of 2021, with increases in most
categories, and in particular manufacturing and services. Sales tax on construction revenues are
the notable exception, which saw a 6.5% decrease from Q2-2021. Overall, retail sales tax
revenues are up $789,000 or 7.7% from the same period last year.
Quarterly Financial Report Through June 2022 7
Quarterly Financial Report Through June 2022 8
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.
The following table breaks out the City’s retail sales taxes by major business sector.
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 June
2022 were $417,600 more than what was collected through June 2021.
2021 2022
Component Group YTD Actual YTD Actual Amount
Construction 1,386,613$ 1,372,433$ (14,180)$ (1.0)%
Manufacturing 176,838 484,023 307,185 173.7 %
Transportation & Warehousing 181,775 136,358 (45,417) (25.0)%
Wholesale Trade 682,475 725,599 43,124 6.3 %
Automotive 2,186,225 2,281,327 95,102 4.4 %
Retail Trade 3,180,701 3,277,070 96,369 3.0 %
Services 2,314,579 2,615,432 300,853 13.0 %
Miscellaneous 168,429 174,471 6,042 3.6 %
YTD Total 10,277,635$ 11,066,712$ 789,077$ 7.7 %
Comparison of Retail Sales Tax Collections by Group
Through June 2022
Change from 2021
Percentage
Quarterly Financial Report Through June 2022 9
Quarterly Financial Report Through June 2022 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. Although admission tax revenues of $127,000 collected through June 2022 were
significantly higher than Q2-2021; this is due in part to COVID-19 restrictions, whereby some
entertainment businesses did not reopen until the second quarter of 2021. The primary remitter of
admission tax to the City of Auburn is the Auburn Regal Cinema at the Outlet Collection mall,
contributing roughly 75% of these revenues between 2018-2020. However, in both 2021 and
year-to-date in 2022, Regal Cinema’s contributions have dropped by half from their pre-pandemic
levels. As a result, admission tax revenues are unfavorable to budget by roughly $91,000.
2021 2022 2022
Utility Tax Type YTD Actual YTD Budget YTD Actual Amount Amount
City Interfund Utility Taxes 2,974,962$ 3,202,900$ 3,295,916$ $ 320,954 10.8 % $ 93,016 2.9 %
Electric 1,979,127 1,880,200 2,144,208 165,081 8.3 %264,008 14.0 %
Natural Gas 709,535 764,300 809,712 100,178 14.1 %45,412 5.9 %
Telephone 372,126 354,400 284,515 (87,610)(23.5)%(69,885)(19.7)%
Solid Waste (external)109,922 0 28,897 (81,026)(73.7)%28,897
YTD Total 6,145,671$ 6,201,800$ 6,563,248$ $ 417,577 6.8 % $ 361,448 5.8 %
Through June 2022
Utility Tax by Type
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
$0
$100
$200
$300
$400
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsAdmission Tax
2022 Budget
2022 YTD Actual
2021 Actual
Quarterly Financial Report Through June 2022 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 Q2-2021, 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 $103 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, most of these revenues are collected in December for the following year
or in January in the current year. Business license revenues collected through Q2-2022 totaled
$107,000, lower than the projected revenues of $124,000. Compared to 2021 totals, YTD 2022 is
unfavorable by $17,600.
$0.0
$100.0
$200.0
$300.0
$400.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsGambling Tax
2022 Budget
2022 YTD Actual
2021 Actual
Quarterly Financial Report Through June 2022 12
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsBusiness Licenses
2022 Budget
2022 YTD Actual
2021 Actual
$163
$353 $336 $354
$424
$107
$0
$100
$200
$300
$400
$500
2017 2018 2019 2020 2021 2022
YTDThousandsBusiness License Revenues
Actuals
Quarterly Financial Report Through June 2022 13
Building Permit revenues collected through June 2022 totaled $477,000. While this is
approximately $248,000 lower than 2021 collections year-to-date, revenues were $92,000
favorable to budget. Among the contributing factors for this favorable variance was the permitting
of a seven-story mixed-use building on Main Street known as Divine Court.
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 Q2-2022 totaled $2.6 million and were $234,000 favorable
to budget expectations. Much of this favorable variance is still due to the unbudgeted receipt of
$250,000 for Streamlined Sales Tax mitigation monies collected in March. However, state and
interlocal grant collections have been minimal YTD impacting the YTD actual vs. budget variance.
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
1 2 3 4 5 6 7 8 9 10 11 12MillionsBuilding Permits
2022 Budget
2022 YTD Actual
2021 Actual
$1.2
$0.9
$1.2
$0.8
$1.3
$0.5
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
2017 2018 2019 2020 2021 2022
YTDMillionsBuilding Permits
Actuals
Quarterly Financial Report Through June 2022 14
Note that 2020 revenue was higher than normal due to the receipt of $3.8 million in federal
CARES grant money from the Department of Treasury.
2021 2022 2022
Revenue YTD Actual YTD Budget YTD Actual Amount Amount
Federal Grants 27,924$ 26,175$ 2,120$ $ (25,804)(92.4)% $ (24,055)93.2 %
State Grants 108,581 235,100 - (108,581)(100.0)% (235,100)216.5 %
Interlocal Grants 63,567 183,300 73,895 10,328 16.2 % (109,405)(1059.3)%
Muckleshoot Casino Services 385,997 485,650 385,997 - 0.0 %(99,653)
One-Time Allocation (SB 5092)- - - - -
State Shared Revenues:
Streamlined Sales Tax 1,000,158 500,000 500,079 (500,079)(50.0)%79 (0.0)%
Motor Vehicle Fuel Tax 498,377 505,000 557,085 58,708 11.8 %52,085 88.7 %
Criminal Justice - High Crime 113,625 108,200 136,636 23,011 20.3 %28,436 123.6 %
Criminal Justice - Population 13,036 13,000 14,665 1,628 12.5 %1,665 102.2 %
Criminal Justice - Special Prog.46,536 48,000 52,121 5,585 12.0 %4,121 73.8 %
Marijuana Excise Tax 82,009 93,650 111,497 29,487 36.0 %17,847 60.5 %
State DUI 6,434 6,000 7,364 930 14.5 %1,364 146.6 %
Fire Insurance Tax 98,371 88,400 104,661 6,289 6.4 %16,261 258.5 %
Liquor Excise 282,049 249,288 313,219 31,170 11.1 %63,931 205.1 %
Liquor Profit 323,785 325,000 341,600 17,815 5.5 %16,600 93.2 %
Total State Shared:2,464,380 1,936,538 2,138,925 (325,454) (13.2)% 202,387 (62.2)%
YTD Total 3,050,448$ 2,866,763$ 2,600,936$ (449,512)$ (14.7)%(265,827)$ (9.3)%
Through June 2022
Intergovernmental Revenues (Grants, Entitlements & Services)
2022 vs. 2021 Actual 2022 vs. Budget
% Change % Change
$6.1 $6.3 $6.0
$10.2
$6.3
$2.6
$0
$2
$4
$6
$8
$10
$12
2017 2018 2019 2020 2021 2022
YTDMillionsIntergovernmental Revenues
(Grants, Entitlements & Services)
Actuals
Quarterly Financial Report Through June 2022 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
through June 2022 totaled $4.3 million and was $274,000, or 6.9%, more than expected to date.
The General Government revenue category primarily includes the interfund assessment for the
salary and benefit costs for support departments (Finance, Human Resources and Legal). Salary
and benefit costs for these 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 fees for passport services, reimbursement from cities
participating in the South King Housing and Homelessness Partners (SKHHP), as well as
transportation projects. The slight unfavorable variance of $95,000 to budget is due to the timing
of SKHHP revenues, which are received on a reimbursement basis.
Public safety revenues mainly 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 the second quarter of 2022 totaled $439,500 and were $55,500 unfavorable to budget primarily
due to lower than anticipated need for extra duty security services.
Development services fee collections consist primarily of plan check fees, facility extension
charges, and zoning and subdivision fees. Through Q2-2022, development service fees collected
totaled $682,000 and were $142,500 favorable to budget expectations. Major contributors to this
variance were FAC linear charges (fees assessed on projects that require extension of public
facilities) as well as zoning and subdivision fees; where pre-application and preliminary plat fees
were higher than expected.
2021 2022 2022
Revenue YTD Actual YTD Budget YTD Actual Amount Amount
General Government 1,663,296$ 1,823,175$ 1,728,339$ $ 65,044 3.9 % $ (94,836)(5.2)%
Public Safety 689,130 494,100 439,528 (249,602)(36.2)%(54,572)(11.0)%
Development Services 790,126 539,400 681,920 (108,205)(13.7)%142,520 26.4 %
Culture & Recreation 1,218,933 1,132,327 1,413,393 194,460 16.0 %281,066 24.8 %
YTD Total 4,361,484$ 3,989,002$ 4,263,180$ (98,304)$ (2.3)% $ 274,178 6.9 %
Through June 2022
Charges for Services by Type
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
Quarterly Financial Report Through June 2022 16
Most of the 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, culture and recreation revenues exceeded budget by
$281,000, or 24.8%. Nearly 75% of year-to-date revenues have come from greens fees at the
Auburn Golf Course and recreation classes. While greens fee revenues have decreased $65,500
or -8.4% from the same period last year, recreation class revenues have increased by $106,000
or 134.4% and special events increased by $67,000 or 758.8%. This is primarily attributable to
COVID-19 restrictions in place during Q1-2021 that have since been eased or removed.
$0.9 $0.9
$1.1
$1.0
$1.6
$0.7
$0.0
$0.5
$1.0
$1.5
2017 2018 2019 2020 2021 2022
YTDMillionsDevelopment Service Fees
Actuals
Quarterly Financial Report Through June 2022 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 through
June 2022 totaled $183,600 as compared to a budget of $398,800 and were 54.0% below budget
expectations primarily due to lower-than-budgeted collections in civil infraction penalties (typically
consisting of traffic infractions).
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsCulture & Recreation
2022 Budget
2022 YTD Actual
2021 Actual
Quarterly Financial Report Through June 2022 18
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFines & Penalties
2022 Budget
2022 YTD Actual
2021 Actual
$0.9 $0.9 $0.9
$0.6
$0.4
$0.2
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
2017 2018 2019 2020 2021 2022
YTDMillionsFines & Penalties
Actuals
Quarterly Financial Report Through June 2022 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 YTD 2022 in this category totals $1.07 million and were $340,000 favorable
to budget. The majority of the favorable variance to budget was in the other miscellaneous
revenue category, largely due to the sale of fixed assets with respect to a fire utility easement.
Also contributing to the favorable variance were higher than average pre-payments for facility
rentals in the interest & investments category.
2021 2022 2022
Month YTD Actual YTD Budget YTD Actual Amount Amount
Interest & Investments 2,412$ 45,600$ 156,679$ 154,267$ 6396.2 %111,079$ 243.6 %
Rents & Leases 407,597 536,200 537,347 129,750 31.8 %1,147 0.2 %
Contributions & Donations 1,973 14,200 7,654 5,680 287.8 %(6,546)(46.1)%
Other Miscellaneous Revenue 136,764 131,050 365,020 228,256 166.9 %233,970 178.5 %
YTD Total 548,746$ 727,050$ 1,066,699$ 517,953$ 94.4 %339,649$ 46.7 %
Miscellaneous Revenues by Type
Through June 2022
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
$1.5
$1.8 $1.8
$1.2
$1.5
$1.0
$0.0
$0.5
$1.0
$1.5
$2.0
2017 2018 2019 2020 2021 2022
YTDMillionsMiscellaneous Revenues
Actuals
Quarterly Financial Report Through June 2022 20
Real Estate Excise Tax (REET) revenues are taxes on the sale of both commercial properties
and single-family residences. These collections are receipted into the Capital Improvement
Projects Fund and used for governmental capital projects. REET revenues collected year-to-date
in 2022 total $3.1 million, which is $2.0 million or 64.2% favorable to budget expectations. This
strong performance continues on the heels of 2021, which saw the highest REET revenue
collections on record for the City of Auburn. This increase YTD 2022 is attributable to the
continued growth of the real estate market and increase of property values. A notable contributor
to the large favorable variance is the LogistiCenter property in Auburn.
2021 2022 2022
Month YTD Actual YTD Budget YTD Actual Amount Amount
1 328,140 186,200$ 235,988 (92,152) (28.1) % 49,788 21.1 %
2 244,189 186,200 320,851 76,661 31.4 % 134,651 42.0 %
3 423,532 186,200 855,713 432,182 102.0 % 669,513 78.2 %
4 385,966 186,200 530,857 144,891 37.5 % 344,657 64.9 %
5 339,074 186,200 710,134 371,060 109.4 % 523,934 73.8 %
6 447,063 186,200 479,225 32,162 7.2 % 293,025 61.1 %
7 563,422 186,200
8 585,227 186,200
9 946,209 186,200
10 393,570 186,200
11 474,992 186,200
12 825,919 186,500
YTD Total 2,167,965 1,117,200 3,132,769 964,804 44.5%2,015,569 64.3%
Real Estate Excise Tax Revenues
Through June 2022
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
1 2 3 4 5 6 7 8 9 10 11 12MillionsReal Estate Excise Tax
2022 Budget
2022 YTD
Actual
Quarterly Financial Report Through June 2022 21
Utility Enterprise Funds
Utility activities are divided between operating funds and capital sub-funds. Operating funds
house all the operating costs along with debt service and financing obligations. Capital funds
show costs associated with capital acquisition and construction. Both the operating and capital
funds have a working capital balance. This approach isolates those funds available for capital and
cash flow needs for daily operations, and project managers will know exactly how much working
capital is available for current and planned projects.
Through June 2022, the Water Utility had operating income of $1.5 million (operating revenues
less operating expenditures), approximately $225,000 above the same period as last year. Water
Fund operating revenues were $165,000 or 2.5% higher than Q2-2021; the majority of this
variance was due to stronger performance in water sales revenue, which was offset by lower
interest earnings. Operating expenditures decreased by $60,000 mainly due to decreased in debt
service interest payments. This decrease was partially offset by increased City utility tax
expenditures.
Billable water consumption through June 2022 totaled 1,210,141 hundred cubic feet (ccf), a
decrease of 29,600 ccf (2.4%) over Q2-2021. The largest driver of this decrease were single
family and duplex, and irrigation, while commercial saw an increase over 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.
$3.6 $3.9
$5.2
$4.2
$6.0
$3.1
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
2017 2018 2019 2020 2021 2022
YTDMillionsReal Estate Excise Tax Revenues
Actuals
Quarterly Financial Report Through June 2022 22
Through June 2022, the Sewer Utility finished with operating income of $706,000 as compared
to $509,000 through June 2021. Operating revenues were up $357,000 or 8.2% from the same
period last year due to stronger performance in charges for City sewer service. Operating
expenses were up $161,000 mainly due to increased City interfund utility tax payments, as well
as increased personnel and interfund service costs.
In the second quarter of 2022, the Stormwater Utility had operating income of $1.3 million
compared with $1.1 million in the same period last year. Operating revenues were up $250,000
compared to Q2-2021 due to charges for City storm service. As most Stormwater Utility charges
are based on a flat rate, there are not typically significant fluctuations in this revenue.
Operating expenditures in the Stormwater Utility were up $80,000 compared to the second
quarter of last year. This increase was mainly due to higher interfund utility tax payments.
Internal Service Funds
Operating expenditures within the Insurance Fund represent the premium cost pool that will be
allocated monthly to other City funds over the course of the year. As a result, the expenditure
balance gradually diminishes each month throughout the year.
No significant variances are reported in the Workers’ Compensation, Facilities, Innovation &
Technology, or Equipment Rental Funds.
Contact Information
This report is prepared by the Finance Department. Additional financial information can also be
viewed at our website: http://www.auburnwa.gov/. For any questions about this report please
contact Jamie Thomas at jdthomas@auburnwa.gov.
SALES TAX SUMMARY
JUNE 2022 SALES TAX DISTRIBUTIONS (FOR APRIL 2022 RETAIL ACTIVITY)
2021 Annual Total 2021 YTD 2022 YTD YTD 2021 Annual Total 2021 YTD 2022 YTD YTD
NAICS CONSTRUCTION (Nov '20-Oct '21)(Nov '20-Apr '21)(Nov '21-Apr '22)% Diff NAICS AUTOMOTIVE (Nov '20-Oct '21)(Nov '20-Apr '21)(Nov '21-Apr '22)% Diff
236 Construction of Buildings 1,822,597 921,180 743,625 -19.3%441 Motor Vehicle and Parts Dealer 4,296,210 2,062,292 2,149,310 4.2%
237 Heavy and Civil Construction 204,312 98,712 88,653 -10.2%447 Gasoline Stations 259,015 123,933 132,017 6.5%
238 Specialty Trade Contractors 1,007,202 447,472 540,155 20.7%TOTAL AUTOMOTIVE 4,555,224$ 2,186,225$ 2,281,327$ 4.4%
TOTAL CONSTRUCTION 3,034,111$ 1,467,364$ 1,372,433$ -6.5%Overall Change from Previous Year 95,102$
Overall Change from Previous Year (94,931)$
2021 Annual Total 2021 YTD 2022 YTD YTD
2021 Annual Total 2021 YTD 2022 YTD YTD NAICS RETAIL TRADE (Nov '20-Oct '21)(Nov '20-Apr '21)(Nov '21-Apr '22)% Diff
NAICS MANUFACTURING (Nov '20-Oct '21)(Nov '20-Apr '21)(Nov '21-Apr '22)% Diff 442 Furniture and Home Furnishings 290,161 142,223 122,821 -13.6%
311 Food Manufacturing 10,030 4,529 8,322 83.8%443 Electronics and Appliances 343,833 161,230 190,052 17.9%
312 Beverage and Tobacco Products 14,270 6,880 6,985 1.5%444 Building Material and Garden 802,678 377,933 369,628 -2.2%
313 Textile Mills 728 415 449 8.1%445 Food and Beverage Stores 487,109 228,770 266,301 16.4%
314 Textile Product Mills 2,905 1,509 1,873 24.1%446 Health and Personal Care Store 391,338 195,648 207,623 6.1%
315 Apparel Manufacturing 1,759 962 560 -41.7%448 Clothing and Accessories 1,122,519 541,691 561,704 3.7%
316 Leather and Allied Products 612 237 320 35.2%451 Sporting Goods, Hobby, Books 334,027 162,191 177,415 9.4%
321 Wood Product Manufacturing 21,166 7,057 16,494 133.7%452 General Merchandise Stores 916,949 476,664 463,044 -2.9%
322 Paper Manufacturing 5,379 2,083 2,888 38.7%453 Miscellaneous Store Retailers 1,493,818 741,050 780,751 5.4%
323 Printing and Related Support 53,224 20,189 48,979 142.6%454 Nonstore Retailers 279,532 153,302 137,732 -10.2%
324 Petroleum and Coal Products 15 5 5 6.2%TOTAL RETAIL TRADE 6,461,966$ 3,180,701$ 3,277,070$ 3.0%
325 Chemical Manufacturing 14,340 5,071 6,549 29.1%Overall Change from Previous Year 96,369$
326 Plastics and Rubber Products 7,555 3,807 4,439 16.6%
327 Nonmetallic Mineral Products 18,959 8,551 8,520 -0.4%
331 Primary Metal Manufacturing 8,894 8,348 567 -93.2%2021 Annual Total 2021 YTD 2022 YTD YTD
332 Fabricated Metal Product Manuf 38,660 14,789 23,665 60.0%NAICS SERVICES (Nov '20-Oct '21)(Nov '20-Apr '21)(Nov '21-Apr '22)% Diff
333 Machinery Manufacturing 17,222 9,789 10,059 2.8%51*Information 759,640 377,003 419,158 11.2%
334 Computer and Electronic Product 15,944 10,008 19,168 91.5%52*Finance and Insurance 157,662 79,057 83,003 5.0%
335 Electric Equipment, Appliances 1,074 592 2,432 311.0%53*Real Estate, Rental, Leasing 448,984 225,469 226,274 0.4%
336 Transportation Equipment Man 219,977 50,688 289,292 c 470.7%541 Professional, Scientific, Tech 481,644 a 211,650 272,389 28.7%
337 Furniture and Related Products 14,021 6,990 8,074 15.5%551 Company Management 48 19 80 318.1%
339 Miscellaneous Manufacturing 34,746 14,341 24,383 70.0%56*Admin. Supp., Remed Svcs 792,428 406,876 386,403 -5.0%
TOTAL MANUFACTURING 501,480$ 176,838$ 484,023$ 173.7%611 Educational Services 44,374 18,529 22,554 21.7%
Overall Change from Previous Year 307,185$ 62*Health Care Social Assistance 99,456 54,247 66,781 23.1%
71*Arts and Entertainment 74,095 19,617 35,208 79.5%
72*Accommodation and Food Svcs 1,429,205 623,271 715,407 14.8%
2021 Annual Total 2021 YTD 2022 YTD YTD 81*Other Services 632,779 297,358 387,180 d 30.2%
NAICS TRANSPORTATION AND WAREHOUSING (Nov '20-Oct '21)(Nov '20-Apr '21)(Nov '21-Apr '22)% Diff 92*Public Administration 3,918 1,483 996 -32.8%
481 Air Transportation 0 0 0 N/A TOTAL SERVICES 4,924,232$ 2,314,579$ 2,615,432$ 13.0%
482 Rail Transportation 21,189 8,150 11,110 36.3%Overall Change from Previous Year 300,853$
483 Water Transportation 0 0 0 N/A
484 Truck Transportation 30,906 12,799 15,664 22.4%
485 Transit and Ground Passengers 2 0 114 N/A 2021 Annual Total 2021 YTD 2022 YTD YTD
488 Transportation Support 46,167 23,185 25,854 11.5%NAICS MISCELLANEOUS (Nov '20-Oct '21)(Nov '20-Apr '21)(Nov '21-Apr '22)% Diff
491 Postal Service 736 405 410 1.3%000 Unknown 0 0 0 N/A
492 Couriers and Messengers 265,381 131,485 78,027 -40.7%111-115 Agriculture, Forestry, Fishing 7,443 4,488 5,105 13.7%
493 Warehousing and Storage 8,727 5,750 5,179 -9.9%211-221 Mining & Utilities 37,007 16,447 8,684 -47.2%
TOTAL TRANSPORTATION 373,108$ 181,775$ 136,358$ -25.0%999 Unclassifiable Establishments 365,056 147,494 160,683 8.9%
Overall Change from Previous Year (45,417)$ TOTAL SERVICES 409,506$ 168,429$ 174,471$ 3.6%
Overall Change from Previous Year 6,042$
2021 Annual Total 2021 YTD 2022 YTD YTD
NAICS WHOLESALE TRADE (Nov '20-Oct '21)(Nov '20-Apr '21)(Nov '21-Apr '22)% Diff GRAND TOTAL 21,683,222$ 10,358,386$ 11,066,712$
423 Wholesale Trade, Durable Goods 1,066,703 522,795 558,076 b 6.7%Overall Change from Previous Year 708,326$ 6.8%
424 Wholesale Trade, Nondurable 337,782 148,581 156,899 5.6%
425 Wholesale Electronic Markets 19,109 11,099 10,624 -4.3%Total June 2022 Sales Tax Distributions 1,838,207$
TOTAL WHOLESALE 1,423,595$ 682,475$ 725,599$ 6.3%Dollar Change from 1 year ago 22,986$ g
43,124$ Percent Change from June 2021 1.3%
Comparisons:
June 2021 1,815,220$
Includes Adjustments in excess of +/- $10,000.June 2020 1,315,118$
a. WA State Department of Revenue adjustment to sales tax returns for July 2021 Reporting (adjustment: $42,412).
b. WA State Department of Revenue adjustment to sales tax returns for January 2022 Reporting (adjustment: -$23,324).
c. WA State Department of Revenue adjustment to sales tax returns for January 2022 Reporting (adjustment: $223,728).
d. WA State Department of Revenue adjustment to sales tax returns for February 2022 Reporting (adjustment: $15,861).
e. WA State Department of Revenue adjustment to sales tax returns for May 2022 Reporting (adjustment: $15,726).
08/17/22