HomeMy WebLinkAboutQ3 2022 Financial ReportAGENDA BILL APPROVAL FORM
Agenda Subject:
3rd Quarter 2022 Financial Report Update
Date:
December 2, 2022
Department:
Finance
Attachments:
Financial Report through September 2022 -
Monthly Sales Tax Report
Budget Impact:
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 September 30, 2022, based on financial data available
as of November 30, 2022. Sales tax information represents tax collected through September
2022, reflecting business activity through July 2022.
Reviewed by Council Committees:
Councilmember:Baggett Staff:Thomas
Meeting Date:December 12, 2022 Item Number:
Quarterly Financial Report Through September 2022
General Fund Summary
$1.3
$0.9
$4.5 $3.2 $4.7 $5.3
$0.8
$4.1
$25.4
$2.9
$11.4
$2.9 $2.8
$1.1 $0.8
$3.5
$2.8
$3.3 $3.9
$0.7
$3.6
$23.2
$2.7
$10.3
$2.7 $1.9
Council& MayorAdministrativeServicesHumanResourcesFinanceCity AttorneyCommunityDevelopmentCommunity &Human ServicesJail - SCOREPolicePublicWorksParks, Arts& RecreationStreetsNon-Departmental$0
$5
$10
$15
$20
$25
$30
$35
$40
Millions2022
Budget
2022
Actuals
(Favorable)
2022
Actuals
(Unfavorable)
General Fund Expenditures by Department
(Through September 2022)
$12.8
$16.6
$11.9
$4.3
$0.8 $2.0
$5.6
$2.4
$40.1
$22.2
$7.4
$0.7
$13.2
$19.2
$13.8
$4.8
$1.1
$2.3 $2.6
$36.3
$16.4
$7.4
$0.4
$5.1
PropertyTaxesSalesTaxesOtherTaxesIntergovernmental(Grants, etc.)DevelopmentService FeesCulture &RecreationOther Fees& ChargesOtherRevenuesPersonnelSupplies& ServicesOtherExpendituresTransfersOutRevenues Expenditures
$0
$10
$20
$30
$40
$50
$60
$70
Millions2022
Budget
2022
Actuals
(Favorable)
2022
Actuals
(Unfavorable)
General Fund Revenues and Expenditures
(Through September 2022)
$56.4 $70.3$62.2 $60.5
Total
Revenues
Total
Expenditures
$0
$20
$40
$60
$80
$100
$120
Millions
Quarterly Financial Report Through September 2022 2
General Fund 2021
Summary of Sources and Uses Annual YTD YTD YTD
Budget Budget Actual Actual Amount
Operating Revenues
Property Tax 6 23,198,400$ 12,813,700$ 13,190,280$ 12,855,125$ 376,580$ 2.9 %
Retail Sales Tax 3, 6-7 20,294,400 14,829,700 16,808,519 15,885,829 1,978,819 13.3 %
Affordable Housing Sales Tax Credit 129,900 97,425 102,190 107,535 4,765 4.9 %
Sales Tax - Pierce County Parks 101,700 74,900 99,961 96,683 25,061 33.5 %
Criminal Justice Sales Tax 2,135,000 1,574,100 2,214,989 1,892,852 640,889 40.7 %
Brokered Natural Gas Tax 131,300 105,100 167,949 119,248 62,849 59.8 %
City Utilities Tax 3, 8-10 6,779,000 5,049,800 5,151,760 4,715,241 101,960 2.0 %
Business & Occupation Tax 500,000 250,000 1,979,741 - 1,729,741 691.9 %
Admissions Tax 10 400,000 312,700 176,087 98,311 (136,613)(43.7)%
Electric Tax 8-10 3,760,400 2,820,300 3,111,165 2,858,500 290,865 10.3 %
Natural Gas Tax 8-10 1,122,500 996,700 1,107,927 959,281 111,227 11.2 %
Cable Franchise Fee 850,600 637,950 456,739 681,138 (181,211)(28.4)%
Cable Utility Tax 969,600 727,200 767,607 718,597 40,407 5.6 %
Cable Franchise Fee - Capital 60,000 45,000 39,396 46,529 (5,604)(12.5)%
Telephone Tax 8-10 704,200 531,800 422,710 529,685 (109,090)(20.5)%
Solid Waste Tax (external)8-10 - - 55,129 170,348 55,129 N/A
Leasehold Excise Tax 210,000 197,500 228,661 209,931 31,161 15.8 %
Gambling Excise Tax 10 342,100 262,197 177,773 60,422 (84,424) (32.2)%
Taxes sub-total 61,689,100$ 41,326,072$ 46,258,583$ 42,005,254$ 4,932,511$ 11.9 %
Business License Fees 11 393,100$ 144,900$ 128,986$ 138,813$ (15,914)$ (11.0)%
Building Permits 3, 12 1,000,900 635,600 772,389 1,130,736 136,789 21.5 %
Other Licenses & Permits 870,300 705,300 757,819 1,021,828 52,519 7.4 %
Intergovernmental (Grants, etc.)4, 13 6,155,195 4,292,544 4,803,571 4,554,505 511,027 11.9 %
Charges for Services:15-16
General Government Services 15 3,653,540 2,740,155 2,581,227 2,486,324 (158,928)(5.8)%
Public Safety 15 988,200 741,150 579,924 891,517 (161,226)(21.8)%
Development Services Fees 15-16 1,041,900 818,000 1,137,072 1,273,177 319,072 39.0 %
Culture and Recreation 15 2,375,680 2,006,389 2,312,157 2,026,882 305,768 15.2 %
Fines and Penalties 16-17 885,400 668,750 269,254 335,759 (399,496) (59.7)%
Fees/Charges/Fines sub-total 17,364,215$ 12,752,788$ 13,342,399$ 13,859,541$ 589,612$ 4.6 %
Interest and Investment Earnings 17-18 91,200$ 68,400$ 334,075$ 68,436$ 265,675$ 388.4 %
Rents and Leases 17-18 1,003,000 843,200 921,189 738,100 77,989 9.2 %
Contributions and Donations 17-18 28,400 21,300 17,230 12,648 (4,070)(19.1)%
Other Miscellaneous 17-18 223,800 185,998 425,026 196,203 239,028 128.5 %
Transfers In 4,167,900 1,072,000 821,014 162,000 (250,986)(23.4)%
Insurance Recoveries - Capital & Operating 225,000 168,750 95,473 69,255 (73,277) (43.4)%
Other Revenues sub-total 5,739,300$ 2,359,648$ 2,614,006$ 1,246,642$ 254,359$ 10.8 %
Total Operating Revenues 84,792,615$ 56,438,507$ 62,214,989$ 57,111,438$ 5,776,482$ 10.2 %
Operating Expenditures
Council & Mayor 1,713,091$ 1,253,500$ 1,108,009$ 793,609$ 145,491$ 11.6 %
Administration 1,170,381 856,700 800,072 937,924 56,628 6.6 %
Human Resources 2,194,183 1,631,400 1,508,386 1,320,958 123,014 7.5 %
Municipal Court & Probation 3,163,945 2,893,409 1,955,758 689,357 937,651 32.4 %
Finance 4,226,313 3,231,400 2,759,963 937,924 471,437 14.6 %
City Attorney 6,243,018 4,674,800 3,275,084 2,983,983 1,399,716 29.9 %
Community Development 7,252,574 5,339,600 3,874,816 3,643,522 1,464,784 27.4 %
Community & Human Services (Comm Devel)1,411,128 844,100 673,915 672,272 170,185 20.2 %
Jail - SCORE 5,523,800 4,142,700 3,642,867 3,423,825 499,833 12.1 %
Police 34,556,650 25,429,100 23,247,236 21,790,269 2,181,864 8.6 %
Public Works 3,945,285 2,933,300 2,667,532 2,579,124 265,768 9.1 %
Parks, Arts & Recreation 15,388,110 11,392,500 10,335,833 8,801,490 1,056,667 9.3 %
Streets 4,034,054 2,925,300 2,702,800 2,769,792 222,500 7.6 %
Non-Departmental 3,997,099 2,783,698 1,922,206 5,781,942 861,492 30.9 %
Total Operating Expenditures 94,819,630$ 70,331,506$ 60,474,475$ 57,125,992$ 9,857,031$ 14.0 %
Page
Ref
2022 2022 YTD Budget vs. Actual
Favorable (Unfavorable)
Percentage
Quarterly Financial Report Through September 2022 3
Executive Summary
This report provides an overview of the City’s overall financial position for the fiscal period ending
September 30, 2022, reflecting financial data available as of October 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 Q3-2022 totaled $62.2 million as compared to
a year-to-date budget of $56.4 million, and were $5.8 million, or 10.2% above budget
expectations.
Notable variances to the 2022 budget include:
•Retail Sales Tax: The sales tax report through Q3-2022 (which is provided as an
attachment to this report) reflects amounts remitted to the City of Auburn based on
sales from November 2021 through July 2022. Collections up to September 2022
totaled $16.8 million, a 5.8% increase from last year. The increase resulted from
multiple categories, particularly manufacturing, in which The Boeing Company had a
346% increase from July 2021 compared to July 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 Q3-
2022 were $211,000 favorable to budget and $371,000 higher than what was
collected through Q3-2021. [pages 8-10]
•Building permit revenues collected through Q3-2022 totaled $772,000, which was
137,000 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 12]
Quarterly Financial Report Through September 2022 4
•Intergovernmental revenues collected through Q3-2022 totaled $4.8 million and were
$511,000 favorable to budget. Higher revenues generated from Muckleshoot Casino
contribute to the favorable balance to the budget. [page 13]
•Culture and Recreation revenues collected through Q3-2022 totaled $2.3 million and
were $306,000 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 57% of the favorable variance results from the Auburn Golf
Course and 21% consists of recreational classes. [page 15]
General Fund expenditures through Q3-2022 totaled $60.5 million compared to a budget of $68.2
million, representing a $7.8 million favorable variance to budget. Almost all departments operated
within their budgets through the third quarter of 2022.
Of this favorable variance to budget, 47% of that is comprised of underspends in supplies and
professional services, while 49% was due to underspends in personnel costs.
YTD Budget $56.4 M
YTD Budget $70.3 M
YTD Actuals $62.2 M
YTD Actuals $60.5 M
$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100
Revenues
Expenditures
$ Millions
General Fund
Revenues vs. Expenditures Through September 2022
Quarterly Financial Report Through September 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 Q3-2022 with operating income of about $4.3 million, which was
approximately $25,000 below the same period last year due to increase in expenditures from Q3-
2021. This increase was driven by higher interfund operating rentals and supplies. Revenues
were higher in rents, leases, concessions, and interest earnings. [page 21]
The Sewer Fund had operating income of about $1.2 million versus $900,000 in the same period
last year. Increased consumption revenues were offset by higher expenditures, similar to the
Water Fund. [page 22]
Through September 2022, the Stormwater Fund had operating income of $1.9 million compared
to $1.8 million in the same period in 2021; the increase in revenues (primarily from charges for
storm service and interest earnings) were two times higher than the increase in expenditures.
[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 Q3-2022. [page 22]
Quarterly Financial Report Through September 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 third quarter totaled roughly $563,000 as compared to a third
quarter budget of $685,700. Year-to-date collections total $13.2 million versus a budget of $12.8
million resulting in $377,000 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 Q3-2022 totaled $16.8 million, representing taxes remitted
to the City of Auburn based on sales from November 2021 through July 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 third quarter of 2022 exceed those from the third 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 5.0% decrease from Q3-2021. Overall, retail sales tax
revenues are up $842,000 or 5.3% from the same period last year.
$13.2M
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMILLIONSProperty Taxes
2022 Budget 2022 YTD Actual 2021 Actual
Quarterly Financial Report Through September 2022 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.
$16.8M
$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
2022 Budget 2022 YTD Actual 2021 Actual
$14.9
$15.9
$18.8 $18.9
$21.6
$16.8
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2017 2018 2019 2020 2021 2022
YTDMillionsRetail Sales & Use Tax
Quarterly Financial Report Through September 2022 8
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
September 2022 were approximately $643,000 more than what was collected through September
2021.
2021 2022
Component Group YTD Actual YTD Actual Amount
Construction 2,205,248$ 2,094,449$ (110,799)$ (5.0)%
Manufacturing 266,821 627,904 361,083 135.3 %
Transportation & Warehousing 275,220 196,911 (78,309) (28.5)%
Wholesale Trade 1,068,765 1,148,352 79,587 7.4 %
Automotive 3,419,344 3,501,328 81,984 2.4 %
Retail Trade 4,837,848 4,938,763 100,915 2.1 %
Services 3,611,899 4,023,179 411,280 11.4 %
Miscellaneous 281,436 277,633 (3,803) (1.4)%
YTD Total 15,966,581$ 16,808,519$ 841,938$ 5.3 %
Comparison of Retail Sales Tax Collections by Group
Through September 2022
Change from 2021
Percentage
$10.4M
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMILLIONSUtility Tax
2022 Budget 2022 YTD Actual 2021 Actual
Quarterly Financial Report Through September 2022 9
The table below demonstrates the various utility tax revenues and show actual revenues
compared to budget.
$10.2 $10.2 $9.9
$11.4
$12.1
$10.4
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
2017 2018 2019 2020 2021 2022
YTDMillionsUtility Tax Revenues
2021 2022 2022
Utility Tax Type YTD Actual YTD Budget YTD Actual Amount Amount
City Interfund Utility Taxes 4,715,241$ 5,049,800$ 5,151,760$ $ 436,519 9.3 % $ 101,960 2.0 %
Electric 2,858,500 2,820,300 3,111,165 252,665 8.8 %290,865 10.3 %
Natural Gas 959,281 996,700 1,107,927 148,646 15.5 %111,227 11.2 %
Telephone 529,685 531,800 422,710 (106,975)(20.2)%(109,090)(20.5)%
Solid Waste (external)170,348 0 55,129 (115,218)(67.6)%55,129 0.0 %
Brokered Natural Gas 119,248 105,100 167,949 48,700 40.8 %62,849 59.8 %
Cable 718,597 637,950 767,607 49,010 6.8 %129,657 20.3 %
YTD Total 10,070,901$ 10,141,650$ 10,784,247$ 713,346$ 7.1 % $ 642,597 6.3 %
Through September 2022
Utility Tax by Type
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
Quarterly Financial Report Through September 2022 10
An Admission Tax of 5.0% is placed on charges for general admission, season tickets, cover
charges, etc. Although admission tax revenues of $176,000 collected through September 2022
were significantly higher than Q3-2021, 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 $137,000.
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.
$176.1K
$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
$177.8K
$0
$100
$200
$300
$400
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecTHOUSANDSGambling Tax
2022 Budget 2022 YTD Actual 2021 Actual
Quarterly Financial Report Through September 2022 11
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 Q3-2022 totaled
$129,000, which was lower than the projected revenues of $144,900, and $9,800 less than
collections through Q3-2021.
$129.0K
$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
$163K
$353K $336K $354K
$424K
$129K
$0
$100
$200
$300
$400
$500
2017 2018 2019 2020 2021 2022
YTDThousandsBusiness License Revenues
Quarterly Financial Report Through September 2022 12
Building Permit revenues collected through September 2022 totaled $772,000. While this is
approximately $358,000 lower than 2021 collections year-to-date, revenues were $137,000
favorable to budget. A large contributing factor for this favorable variance was the permitting of a
seven-story mixed-use building on Main Street known as Divine Court.
$0.8M
$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
$0.8
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
2017 2018 2019 2020 2021 2022
YTDMillionsBuilding Permits
Quarterly Financial Report Through September 2022 13
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 Q3-2022 totaled $4.8 million and were $511,000 favorable
to budget expectations. Much of this favorable variance is due to the payment made by
Muckleshoot Casino per the compact being higher than budgeted for. However, state and
interlocal grant collections have been minimal to date, impacting the year-to-date budget vs.
actual variance in their respective categories.
Note that 2020 revenue was higher than normal due to the receipt of $3.8 million in federal
CARES grant money from the Department of Treasury.
2021 2022 2022
Revenue YTD Actual YTD Budget YTD Actual Amount Amount
Federal Grants 50,003$ 59,958$ 12,161$ $ (37,842)(75.7)% $ (47,796)126.3 %
State Grants 140,207 404,400 22,589 (117,618)(83.9)% (381,811)324.6 %
Interlocal Grants 136,134 246,600 139,790 3,656 2.7 % (106,810)(2921.5)%
Muckleshoot Casino Services 771,994 728,475 1,465,012 693,019 89.8 %736,537 106.3 %
One-Time Allocation (SB 5092)- - - - -
State Shared Revenues:
Streamlined Sales Tax 1,250,198 750,000 700,111 (550,087)(44.0)% (49,889)9.1 %
Motor Vehicle Fuel Tax 793,742 770,100 877,056 83,315 10.5 % 106,956 128.4 %
Criminal Justice - High Crime 173,104 162,300 207,922 34,818 20.1 %45,622 131.0 %
Criminal Justice - Population 19,993 19,900 22,465 2,473 12.4 %2,565 103.7 %
Criminal Justice - Special Prog.71,238 73,500 97,286 26,048 36.6 %23,786 91.3 %
Marijuana Excise Tax 135,905 140,475 179,192 43,287 31.9 %38,717 89.4 %
State DUI 9,922 9,000 7,179 (2,743)(27.6)%(1,821)66.4 %
Fire Insurance Tax 98,371 88,400 104,661 6,289 6.4 %16,261 258.5 %
Liquor Excise 418,082 351,936 455,769 37,688 9.0 % 103,833 275.5 %
Liquor Profit 485,614 487,500 512,377 26,763 5.5 %24,877 93.0 %
Total State Shared:3,456,167 2,853,111 3,164,018 (292,149) (8.5)% 310,907 (106.4)%
YTD Total 4,554,505$ 4,292,544$ 4,803,571$ 249,066$ 5.5 %511,027$ 11.9 %
Through September 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
$4.8
$0
$2
$4
$6
$8
$10
$12
2017 2018 2019 2020 2021 2022
YTDMillionsIntergovernmental Revenues
(Grants, Entitlements & Services)
Quarterly Financial Report Through September 2022 14
Charges for Services consist of general governmental service charges, public safety charges,
development service fees, and culture and recreation fees. Total charges for services collected
through September 2022 totaled $6.6 million and was $305,000, or 4.8%, more than expected to
date.
The General Government revenue category primarily includes the interfund assessment for
support departments (Finance, Human Resources and Legal). Operating 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
unfavorable variance of $159,000 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 third quarter of 2022 totaled $580,000 and were $161,000 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 Q3-2022, development service fees collected
totaled $1.1 million and were $319,000 favorable to budget expectations. Major contributors to
this variance were FAC linear charges (fees assessed on projects that require extension of public
facilities) as well as zoning and subdivision fees; pre-application and preliminary plat fees were
higher than expected.
2021 2022 2022
Revenue YTD Actual YTD Budget YTD Actual Amount Amount
General Government 2,486,324$ 2,740,155$ 2,581,227$ $ 94,902 3.8 % $ (158,928)(5.8)%
Public Safety 891,517 741,150 579,924 (311,593)(35.0)%(161,226)(21.8)%
Development Services 1,273,177 818,000 1,137,072 (136,105)(10.7)%319,072 39.0 %
Culture & Recreation 2,026,882 2,006,389 2,312,157 285,276 14.1 %305,768 15.2 %
YTD Total 6,677,900$ 6,305,694$ 6,610,380$ (67,520)$ (1.0)% $ 304,686 4.8 %
Through September 2022
Charges for Services by Type
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
Quarterly Financial Report Through September 2022 15
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
$306,000, or 15.2%. Nearly 78% of year-to-date revenues have come from greens fees at the
Auburn Golf Course and recreation classes. While greens fee revenues have decreased $32,000
or 2.4% from the same period last year, recreation class revenues have increased by $132,000 or
37.9% and special events increased by $97,000 or 705.1%. 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
$1.1
$0.0
$0.5
$1.0
$1.5
2017 2018 2019 2020 2021 2022
YTDMillionsDevelopment Service Fees
$2.3M
$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 September 2022 16
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
September 2022 totaled $269,250 as compared to a budget of $668,750 and were 59.7% below
budget expectations primarily due to lower-than-budgeted collections in civil infraction penalties
(typically consisting of traffic infractions).
2021 2022 2022
Month YTD Actual YTD Budget YTD Actual Amount Amount
Civil Penalties 19,747$ 19,050$ 4,109$ $ (15,638)(79.2)% $ (14,941)(78.4)%
Civil Infraction Penalties 160,925 328,800 99,958 (60,967)(37.9)%(228,842)(69.6)%
Traffic Photo Enforcement 2,410 114,700 562 (1,848)(76.7)%(114,138)N/A %
Parking Infractions 47,864 84,300 62,118 14,254 29.8 %(22,182)(26.3)%
Criminal Traffic Misdemeanor 29,462 29,600 21,830 (7,633)(25.9)%(7,770)(26.3)%
Criminal Non-Traffic Fines 15,599 23,800 27,771 12,172 78.0 %3,971 16.7 %
Criminal Costs 19,378 9,100 21,597 2,219 11.5 %12,497 137.3 %
Non-Court Fines & Penalties 40,374 59,400 31,310 (9,064)(22.4)%(28,090)(47.3)%
YTD Total 335,759$ 668,750$ 269,254$ $ (66,505)(19.8)% $ (399,496)(59.7)%
Through September 2022
Fines & Penalties by Type
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
$0.3M
$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
Quarterly Financial Report Through September 2022 17
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 $1.70 million and were $579,000 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.
$0.9 $0.9 $0.9
$0.6
$0.4
$0.3
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
2017 2018 2019 2020 2021 2022
YTDMillionsFines & Penalties
2021 2022 2022
Month YTD Actual YTD Budget YTD Actual Amount Amount
Interest & Investments 68,436$ 68,400$ 334,075$ 265,639$ 388.2 %265,675$ 388.4 %
Rents & Leases 738,100 843,200 921,189 183,089 24.8 %77,989 9.2 %
Contributions & Donations 12,648 21,300 17,230 4,582 36.2 %(4,070)(19.1)%
Other Miscellaneous Revenue 196,203 185,998 425,026 228,822 116.6 %239,028 128.5 %
YTD Total 1,015,387$ 1,118,898$ 1,697,520$ 682,132$ 67.2 %578,622$ 51.7 %
Miscellaneous Revenues by Type
Through September 2022
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
Quarterly Financial Report Through September 2022 18
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 $4.5 million, which is $2.9 million or 62.9% 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 year-to-date 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.
$1.5
$1.8 $1.8
$1.2
$1.5
$1.7
$0.0
$0.5
$1.0
$1.5
$2.0
2017 2018 2019 2020 2021 2022…MillionsMiscellaneous Revenues
2021 2022 2022
Month YTD Actual YTD Budget YTD Actual Amount Amount
1 328,140 186,200$ 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 %
7 563,422 186,200 331,971 (231,451) (41.1) % 145,771 43.9 %
8 585,227 186,200 497,294 (87,933) (15.0) % 311,094 62.6 %
9 946,209 186,200 560,155 (386,054) (40.8) % 373,955 66.8 %
10 393,570 186,200
11 474,992 186,200
12 825,919 186,500
YTD Total 4,262,823 1,675,800 4,522,189 259,366 6.1% 2,846,389 62.9%
Real Estate Excise Tax Revenues
Through September 2022
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
Quarterly Financial Report Through September 2022 19
$4.5M
$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 2021 Actual
$3.6
$3.9
$5.2
$4.2
$6.0
$4.5
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
2017 2018 2019 2020 2021 2022…MillionsReal Estate Excise Tax Revenues
Quarterly Financial Report Through September 2022 20
American Rescue Plan Act (ARPA) Fund
In March 2021 the American Rescue Plan Act (ARPA) was signed into law, with the intent of
mitigating the economic impacts related to COVID-19. Through ARPA’s State and Local
Government Fiscal Recovery Fund program, the City was allocated $14.75 million in funding.
Council approved the City’s acceptance of ARPA funds in Resolution #5608, and the general
spending categories of those funds (as determined by a Council ad hoc committee) in Ordinance
#6832.
As of September 30, 2022, the City has expended $2.4 million on the following projects:
The Utility Assistance Program will match at 50% any payment made towards the past due
balance (up to 50% of the past due balance) on City of Auburn utility accounts that were
negatively financially impacted by COVID-19 during the public health emergency from March
2020 to September 2021. In the third quarter of 2022, the City provided utility assistance to three
customer accounts, totaling $1,757 in matching funds.
The Vaccination Incentive Program provides incentive payments City employees who voluntarily
attest to being fully vaccinated against COVID-19, and provide proof thereof. This incentive was
provided to three qualified individuals in the third quarter of 2022.
Project CP2125 (D Street SE and 23rd Street SE Storm Improvements) is using ARPA funding to
install curb, gutter and sidewalk along the east side of K Street SE to the south of 21st Street SE.
In the third quarter of 2022, a total of $2,769 was spent on this project.
Expected to begin in December is the Clean and Sober Housing Program, budgeted at $2 million
over the life of the program. This program is to assist residents of Auburn who are experiencing
homelessness and drug addiction who are willing to enroll in and complete inpatient treatment.
The program will cover the costs of clean and sober housing of participants for up to three years if
the participant follows the clean and sober housing agreement.
Also expected to begin in December, the City will be upgrading existing wireless access points
and installing new access points to expand the reach of the current broadband network to
additional Auburn residents.
Title Budget Spent This
Quarter
Lifetime
Spent Remaining
Police Hiring and Retention Bonuses 850,000 671,809 178,191
SCORE Revenue Loss Replacement 800,000 800,000 -
Police Body Cameras 586,400 543,545 42,855
Utility Assistance Program 525,000 1,757 218,601 306,399
cp2214 - Dykstra Footbridge 500,000 10,357 489,643
ARPA Grants Coordinator 420,000 31,765 62,882 357,118
cp2125 - D St SE & 23rd St SE Storm Improvements 135,000 2,769 2,769 132,231
Auburn Way South Median Landscaping Improvements 50,000 40,187 9,814
Vaccination Incentive 47,500 403 34,980 12,520
Other Projects (not started)10,837,332 - 10,837,332
14,751,232 36,694 2,385,128 12,366,104
Quarterly Financial Report Through September 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 September 2022, the Water Utility had operating income of $4.3 million (operating
revenues less operating expenditures), approximately $25,000 below the same period as last
year. Water Fund operating revenues were $143,000 or 1.2% higher than Q3-2021; the majority
of this variance was due to higher interest earnings, and rents, and concessions. Operating
expenditures also increased by $168,000 mainly due to an increase in service charges and
interfund operating rentals and supplies.
Billable water consumption through September 2022 totaled 2,197,933 hundred cubic feet (ccf), a
decrease of 113,072 ccf (3.8%) over Q3-2021. The largest driver of this decrease were single
family and duplex, irrigation, and deduct meters, while multi-family 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.
-
200
400
600
800
1,000
$0.0M
$0.5M
$1.0M
$1.5M
$2.0M
$2.5M
Thousands (ccf)Millions ($)2021 vs 2022
2021 Water Sales ($)2022 Water Sales ($)
2021 Water Sold (ccf)2022 Water Sold (ccf)
Water Revenues and Water Sold
Quarterly Financial Report Through September 2022 22
Through September 2022, the Sewer Utility finished with operating income of $1.2 million as
compared to $894,000 through September 2021. Operating revenues were up $486,000 or 7.2%
from the same period last year due to stronger performance in charges for City sewer service.
Operating expenses were up $201,000 mainly due to increased service charges, as well as
increased personnel and interfund service costs.
Through September 2022, the Stormwater Utility had operating income of $1.9 million
compared with $1.8 million in the same period last year. Operating revenues were up $379,000
compared to third quarter of 2021 due to charges for City storm service and interest earnings. 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 $165,000 compared to the third quarter
of last year. This increase was mainly due to higher service charges and supplies.
Internal Service Funds
Operating expenditures within the Insurance Fund represent the premium cost pool that will be
allocated monthly to other City funds over the course of the year. As a result, the expenditure
balance gradually diminishes each month throughout the year.
No significant variances are reported in the Workers’ Compensation, Facilities, Innovation &
Technology, or Equipment Rental Funds.
Contact Information
This report is prepared by the Finance Department. Additional financial information can also be
viewed at our website: http://www.auburnwa.gov/. For any questions about this report please
contact Jamie Thomas at jdthomas@auburnwa.gov.
SALES TAX SUMMARY
SEPTEMBER 2022 SALES TAX DISTRIBUTIONS (FOR JULY 2022 RETAIL ACTIVITY)
2021 Annual Total 2021 YTD 2022 YTD YTD 2021 Annual Total 2021 YTD 2022 YTD YTD
NAICS CONSTRUCTION (Nov '20-Oct '21)(Nov '20-July '21)(Nov '21-July '22)% Diff NAICS AUTOMOTIVE (Nov '20-Oct '21)(Nov '20-July '21)(Nov '21-July '22)% Diff
236 Construction of Buildings 1,822,597 1,353,952 1,092,895 -19.3%441 Motor Vehicle and Parts Dealer 4,296,210 3,216,009 3,274,580 1.8%
237 Heavy and Civil Construction 204,312 144,856 130,938 -9.6%447 Gasoline Stations 259,015 203,335 132,017 -35.1%
238 Specialty Trade Contractors 1,007,202 706,440 870,616 23.2% 457 Gasoline Stations and Fuel Dealers 0 0 94,731 N/A
TOTAL CONSTRUCTION 3,034,111$ 2,205,248$ 2,094,449$ -5.0%TOTAL AUTOMOTIVE 4,555,224$ 3,419,344$ 3,501,328$ 2.4%
Overall Change from Previous Year (110,799)$ Overall Change from Previous Year 81,984$
2021 Annual Total 2021 YTD 2022 YTD YTD 2021 Annual Total 2021 YTD 2022 YTD YTD
NAICS MANUFACTURING (Nov '20-Oct '21)(Nov '20-July '21)(Nov '21-July '22)% Diff NAICS RETAIL TRADE (Nov '20-Oct '21)(Nov '20-July '21)(Nov '21-July '22)% Diff
311 Food Manufacturing 10,030 7,171 15,075 110.2%442 Furniture and Home Furnishings 290,161 207,364 122,821 -40.8%
312 Beverage and Tobacco Products 14,270 10,149 9,775 -3.7%443 Electronics and Appliances 343,833 246,979 190,052 -23.0%
313 Textile Mills 728 582 679 16.7%444 Building Material and Garden 802,678 607,196 609,552 0.4%
314 Textile Product Mills 2,905 2,466 2,277 -7.7%445 Food and Beverage Stores 487,109 362,464 415,847 14.7%
315 Apparel Manufacturing 1,759 1,430 815 -43.0%446 Health and Personal Care Store 391,338 294,294 207,623 -29.5%
316 Leather and Allied Products 612 463 526 13.6%448 Clothing and Accessories 1,122,519 828,431 561,704 -32.2%
321 Wood Product Manufacturing 21,166 13,912 25,909 86.2%449 Furniture, Home Furnishings, Electronics, and Appl 0 0 139,340 N/A
322 Paper Manufacturing 5,379 3,866 3,816 -1.3%451 Sporting Goods, Hobby, Books 334,027 248,647 177,415 -28.6%
323 Printing and Related Support 53,224 34,849 82,104 135.6%452 General Merchandise Stores 916,949 707,556 463,044 -34.6%
324 Petroleum and Coal Products 15 7 20 182.9%453 Miscellaneous Store Retailers 1,493,818 1,117,058 780,751 -30.1%
325 Chemical Manufacturing 14,340 8,565 18,882 120.4%454 Nonstore Retailers 279,532 217,858 137,732 -36.8%
326 Plastics and Rubber Products 7,555 5,421 7,068 30.4%455 General Merchandise Retailers 0 0 218,076 N/A
327 Nonmetallic Mineral Products 18,959 13,847 16,796 21.3%456 Health and Personal Care Retailers 0 0 91,507 N/A
331 Primary Metal Manufacturing 8,894 8,633 796 -90.8%458 Clothing, Clothing Accessories, Shoe, and Jewelry 0 0 275,509 N/A
332 Fabricated Metal Product Manuf 38,660 21,429 35,221 64.4%459 Sporting Goods, Hobby, Musical Instrument, Book, a 0 0 547,791 N/A
333 Machinery Manufacturing 17,222 13,550 16,097 18.8%TOTAL RETAIL TRADE 6,461,966$ 4,837,848$ 4,938,763$ 2.1%
334 Computer and Electronic Product 15,944 11,952 22,656 89.6%Overall Change from Previous Year 100,916$
335 Electric Equipment, Appliances 1,074 804 2,743 241.3%
336 Transportation Equipment Man 219,977 74,368 319,777 c 330.0%
337 Furniture and Related Products 14,021 10,061 11,954 18.8%2021 Annual Total 2021 YTD 2022 YTD YTD
339 Miscellaneous Manufacturing 34,746 23,298 34,918 49.9%NAICS SERVICES (Nov '20-Oct '21)(Nov '20-July '21)(Nov '21-July '22)% Diff
TOTAL MANUFACTURING 501,480$ 266,821$ 627,904$ 135.3%51*Information 759,640 566,247 634,572 12.1%
Overall Change from Previous Year 361,084$ 52* Finance and Insurance 157,662 119,438 159,383 33.4%
53*Real Estate, Rental, Leasing 448,984 330,260 340,096 3.0%
541 Professional, Scientific, Tech 481,644 356,560 395,100 10.8%
2021 Annual Total 2021 YTD 2022 YTD YTD 551 Company Management 48 34 733 2083.9%
NAICS TRANSPORTATION AND WAREHOUSING (Nov '20-Oct '21)(Nov '20-July '21)(Nov '21-July '22)% Diff 56*Admin. Supp., Remed Svcs 792,428 610,208 588,169 -3.6%
481 Air Transportation 0 0 0 N/A 611 Educational Services 44,374 27,782 36,753 32.3%
482 Rail Transportation 21,189 14,931 19,531 30.8%62*Health Care Social Assistance 99,456 76,768 94,343 22.9%
483 Water Transportation 0 0 0 N/A 71*Arts and Entertainment 74,095 42,873 81,070 89.1%
484 Truck Transportation 30,906 20,569 26,260 27.7%72*Accommodation and Food Svcs 1,429,205 1,020,121 1,121,505 9.9%
485 Transit and Ground Passengers 2 0 135 29219.6%81*Other Services 632,779 458,811 569,311 d 24.1%
488 Transportation Support 46,167 34,668 41,705 20.3%92*Public Administration 3,918 2,798 2,143 -23.4%
491 Postal Service 736 576 589 2.3%TOTAL SERVICES 4,924,232$ 3,611,899$ 4,023,179$ 11.4%
492 Couriers and Messengers 265,381 197,079 99,889 -49.3%Overall Change from Previous Year 411,280$
493 Warehousing and Storage 8,727 7,396 8,801 19.0%
TOTAL TRANSPORTATION 373,108$ 275,220$ 196,911$ -28.5%
Overall Change from Previous Year (78,308)$ 2021 Annual Total 2021 YTD 2022 YTD YTD
NAICS MISCELLANEOUS (Nov '20-Oct '21)(Nov '20-July '21)(Nov '21-July '22)% Diff
000 Unknown 0 0 0 N/A
2021 Annual Total 2021 YTD 2022 YTD YTD 111-115 Agriculture, Forestry, Fishing 7,443 5,908 6,087 3.0%
NAICS WHOLESALE TRADE (Nov '20-Oct '21) (Nov '20-July '21) (Nov '21-July '22) % Diff 211-221 Mining & Utilities 37,007 27,218 30,047 10.4%
423 Wholesale Trade, Durable Goods 1,066,703 801,742 885,639 b 10.5% 999 Unclassifiable Establishments 365,056 248,310 241,498 -2.7%
424 Wholesale Trade, Nondurable 337,782 251,904 245,893 -2.4%TOTAL SERVICES 409,506$ 281,436$ 277,632$ -1.4%
425 Wholesale Electronic Markets 19,109 15,120 16,819 11.2%Overall Change from Previous Year (3,804)$
TOTAL WHOLESALE 1,423,595$ 1,068,765$ 1,148,352$ 7.4%
79,587$ GRAND TOTAL 21,683,222$ 15,966,580$ 16,808,519$
Overall Change from Previous Year 841,939$ 5.3%
Total September 2022 Sales Tax Distributions 1,953,081$
Includes Adjustments in excess of +/- $10,000.Dollar Change from 1 year ago 92,121$
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).Percent Change from September 2021 5.0%
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).Comparisons:
e. WA State Department of Revenue adjustment to sales tax returns for May 2022 Reporting (adjustment: $15,726).September 2021 1,860,960$
September 2020 1,858,640$
11/04/22
Prepared by Auburn Finance Department