HomeMy WebLinkAbout3 - Financial SectionCITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
The City of Auburn’s (the “City”) discussion and analysis is designed to:
Assist the reader in focusing on significant financial issues
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Provide an overview of the City’s financial activity
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Identify changes in the City’s financial position (its ability to meet future years’ challenges)
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Identify any material deviations from the approved budget
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Identify individual fund issues or concerns
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Management’s Discussion and Analysis is designed to focus on the current year’s activities, resulting
changes and currently known facts. Therefore, it should be read in conjunction with the Transmittal
Letter and the City’s financial statements.
Financial Highlights
Net assets, the amount by which total assets exceed total liabilities, equal $366.6 million. A
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total of $278.7 million, or 76% of total net assets, is invested in capital assets, net of debt
related to the capital assets, and includes assets such as utility systems, streets, buildings,
land, vehicles and equipment. An additional $2.4 million of net assets is restricted for
purposes of endowment and debt service. Of the remaining $85.6 million of net assets, the
majority is legally restricted, reserved by city policy for specific purposes, or is restricted for
use by the city’s utilities.
As compared to the 2003 Comprehensive Annual Financial Report (CAFR), total
government net assets increased by $135.8 million. This increase is primarily due to the
GASB Statement No. 34 (GASB 34) infrastructure valuation project in which $129.2 million
of capital assets, net of depreciation, were added to the books.
Government capital assets, separate from the GASB 34 infrastructure valuation project,
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increased by $20.3 million during 2004. Approximately half of this total, or $10.3 million, is
related to the new Auburn Justice Center that was recorded as a capital lease. Most of the
remaining increase is due to internal city infrastructure projects of $4.7 million, $3.1 million
related to the purchase of machinery and equipment, and $2.1 million in infrastructure
donated by developers.
Business-type capital assets, net of depreciation, increased by $8.3 million during 2004.
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Reasons for this increase include $2.8 million of infrastructure that was contributed by
developers, $1.9 million in infrastructure projects completed by the city, and $3.1 million of
projects completed at the airport, golf course, and parking garage retail tenant space.
Government fund balances at year-end totaled $46.7 million. Of this amount, $45.4 million,
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or 97%, is unreserved and available to fund ongoing activities. However, the majority of the
unreserved fund balance relates to special revenue funds and, as such, is legally restricted
for specific purposes. Included in unreserved fund balance is $4.4 million in the cumulative
reserve fund that is intended to provide resources in the event of significant downturns in
certain city funds or provide for capital needs as designated by the City Council.
Compared to 2003, total government fund balances are largely unchanged. Of the $3.1
million increase, $2.2 million is related to the general fund and $0.6 million is related to the
arterial street fund.
The general fund’s unreserved fund balance of $20.7 million at year-end is an increase of
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$2.2 million from 2003. This increase is primarily due to the strong retail sales tax revenues
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CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
which were $2.0 million higher than anticipated, and several projects which were delayed
until 2005.
Total city debt payments during the year, net of compensated absences, totaled $2.7 million.
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Total outstanding debt, including bonds, loans, and capital leases, totaled $35.6 million at
st
. This ending debt balance is an increase of $7.9 million and is due to the
December 31
Auburn Justice Center capital lease of $10.3 million, offset by general debt payments.
During 2004, the citizens of Auburn authorized a property tax levy “lid lift” for the next six
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years that will provide dedicated funding for a local street repair and maintenance program.
This lid lift sets the property tax rate per thousand dollars of assessed value at $2.88 in
2005, and allows it to decline at a slower rate than would have been possible without the
authorizing vote.
Other City Highlights:
The new Auburn Justice Center opened in November. This project, which remodeled a
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historically-significant Auburn landmark, resulted in a building that retained many original
architectural features while providing a state-of-the art facility for the police department and
court.
Land was acquired for a new city fire station to replace an aging, obsolete facility. In
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addition, two new aid vehicles were placed in service.
A “one-stop shopping” philosophy for building permits was implemented.
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New ballfields were created at the GSA park site.
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The new spray park at Les Gove Park was completed.
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Government Access TV began airing city events in January.
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Several street projects were worked on during the year.
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An Information Services department was created when that division was transferred from the
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Finance Director’s office to the Mayor’s office.
Overview of the Financial Statements
The City’s basic financial statements are presented in three parts:
1) Government-wide financial statements
2) Fund financial statements
3) Notes to the financial statements
Other supplementary information, in addition to the basic financial statements, is also contained in
this report. This section of the management’s discussion and analysis is intended to introduce and
explain the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements are designed to be corporate-like in that all governmental
and business-type activities are consolidated into columns which add to a total for the City. The
focus of the Statement of Net Assets is designed to be similar to bottom-line results for the City and
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CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
its governmental and business-type activities. This statement combines and consolidates
governmental funds’ current financial resources (short-term spendable resources) with capital assets
and long-term obligations. Over time, increases or decreases in net assets may be one indicator of
improvement or deterioration in the City’s overall financial health.
TheStatement of Activities is focused on both the gross and net cost of various functions, including
both governmental and business-type activities, which are supported by the City’s general tax and
other revenues. This is intended to summarize and simplify the user’s analysis of cost of various
governmental services and/or subsidy to various business-type activities. The revenue generated by
the specific functions (charges for services, grants, and contributions) is compared to the expenses
for those functions to show how much each function either supports itself or relies on taxes and other
general funding sources for support. All activity on this statement is reported on the accrual basis of
accounting, requiring that revenues are reported when they are earned and expenses are reported
when they are incurred, regardless of when cash is received or disbursed.
Governmental activities of the City include general government (executive, finance, legal, human
resources, court), security (police, fire), physical environment, economic environment, transportation,
health and human services, and culture and recreation. The City’s business-type activities include
water, sanitary sewer, storm water and solid waste utilities, as well as operating a golf course,
airport, cemetery and commercial retail space. Governmental activities are primarily supported by
taxes, charges for services, and grants while business-type activities are self-supporting through
user fees and charges.
Fund Financial Statements
The Fund Financial Statements are the traditional reporting format for governments. A fund is a
fiscal and accounting entity with a self-balancing set of accounts used to account for specific
activities or meet certain objectives. While the government-wide statements present the City’s
finances based on the type of activity (general government vs. business type), the Fund Financial
Statements are presented by fund type, such as the general fund, special revenue funds and
proprietary funds, with the focus on major funds.
Government Funds are used to account for essentially the same functions that are reported as
governmental activities in the government-wide financial statements. The government major fund
presentation is used, utilizing the “sources and uses of liquid resources” basis. This is the manner in
which the budget is typically developed. The basis of accounting is different between the
government fund statements and the government-wide financial statements. The government fund
statements focus on the near-term revenues/financial resources and expenditures while the
government-wide financial statements include both near-term and long-term revenues/financial
resources and expenditures. The information in the governmental fund statements can be used to
evaluate the City’s near-term financing requirements and immediate fiscal health. Comparing the
governmental fund statements with the government-wide statements can help the reader better
understand the long-term impact of the City’s current-year financing decisions.
Because the basis of accounting is different between the government fund statements and the
government-wide financial statements, reconciliations are provided. The reconciliation between the
government fund Balance Sheets and the government-wide Statement of Net Assets is found on the
bottom of the government funds’ Balance Sheet, while the reconciliation between the government
fund Statement of Revenues, Expenditures and Changes in Fund Balance and the government-wide
Statement of Activities is found directly following the government funds’ Statement of Revenues,
Expenses, and Changes in Fund Balance.
The City maintains 19 individual governmental funds. Of these, three are considered major (the
general fund, the arterial street fund, and the capital projects fund) and are presented separately in
the governmental fund Balance Sheet and the governmental fund Statement of Revenues,
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CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
Expenditures and Changes in Fund Balances. The remaining governmental funds are combined into
a single column labeled “Other Governmental Funds”. Individual fund data for each of the other
governmental funds can be found in the combining statements later in this report.
The City maintains budgetary control over its operating funds through the adoption of an annual
budget. Budgets are adopted at the fund level according to state law. Budgetary comparison
statements are presented for the general and arterial street funds as required supplemental
information. Other budgetary comparison schedules are included following the other government
funds’ combining statements in this report.
Proprietary funds are used by governments to account for their business-type activities and use the
same basis of accounting as utilized in private industry. Business-type activities provide specific
goods or services to a group of customers that are paid for by fees charged to those customers.
There is a direct relationship between the fees paid and the services rendered.
The City has two types of proprietary funds: enterprise funds and internal service funds. Enterprise
funds are used to account for goods and services provided to citizens, while internal service funds
are used to account for goods and services provided internally to various city departments.
Enterprise funds report the same functions presented as business-type activities in the government-
wide statements, but in greater detail. The City’s enterprise fund statements provide information on
the City’s four utilities (water, sanitary sewer, storm water, and solid waste) as well as the city-owned
airport, cemetery, and golf course and the city-leased retail space.
Internal service funds are an essential accounting tool used to accumulate and allocate costs
internally among the City’s various functions. The City uses internal service funds to account for its
fleet of vehicles and its insurance premiums. Internal service funds benefit both governmental and
business-type activities, and are allocated accordingly in the government-wide statement of
activities.
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for
individuals, private organizations, other governments or other funds. Fiduciary funds are not
included in the government-wide financial statements because their assets are not available to
support the City’s activities.
The City has two fiduciary funds: a pension fund and an agency fund, and are accounted for on the
accrual basis. As agency funds are custodial in nature, they do not include revenues and expenses.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided
in the government-wide and fund financial statements. The notes to the financial statements can be
found at the end of the Basic Financial Statements section.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information concerning the budget vs. actual reports of the City’s
general fund and major special revenue funds, and the City’s progress in funding its obligation to
provide pension benefits to certain retired firefighters. The budget vs. actual required supplementary
information can be found in the tab labeled “Required Supplemental Information” and the pension
benefit required supplementary information is found in note 9.
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CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
The combining statements referred to earlier in connection with nonmajor government funds,
nonmajor enterprise funds, and internal service funds are presented in the section titled “Fund
Financial Statements and Schedules”.
Government-wide Financial Analysis
The statement of net assets can serve as a useful indicator of the City’s financial position. The City
of Auburn’s net assets (assets in excess of liabilities) at December 31, 2004 totaled $366.6 million.
Following is a condensed version of the government-wide statement of net assets with a comparison
to 2003:
City of Auburn Net Assets
(1)(2) (3)
Governmental ActivitiesBusiness-type Activities Total
As of 12/31/04As of 12/31/03As of 12/31/04As of 12/31/03As of 12/31/04As of 12/31/03
Current and other assets62,040,725$ 55,637,403$ 37,608,470$ 34,067,668$ 99,649,195$ 89,705,071$
Capital assets, net of
accumulated depreciation188,367,820 177,036,386 123,609,677 122,747,048 311,977,497 299,783,434
Total assets250,408,545 232,673,789 161,218,147 156,814,716 411,626,692 389,488,505
Long-term liabilities20,052,535 9,724,063 18,111,105 18,701,721 38,163,640 28,425,784
Other liabilities4,328,785 2,790,290 2,504,489 2,190,809 6,833,274 4,981,099
Total liabilities24,381,320 12,514,353 20,615,594 20,892,530 44,996,914 33,406,883
Net assets
Invested in capital assets,
net of related debt171,921,373 167,057,262 106,783,634 104,513,351 278,705,007 271,570,613
Restricted25,615,116 23,384,709 1,969,809 1,919,515 27,584,925 25,304,224
Unrestricted28,490,736 29,717,465 31,849,110 29,489,320 60,339,846 59,206,785
Total net assets226,027,225$ 220,159,436$ 140,602,553$ 135,922,186$ 366,629,778$ 356,081,622$
(1)
12/31/2003 balances include a $129,775,322 prior-period adustment related to GASB No. 34 infrastructure valuation
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and a $170,460 prior period adjustment related to the fire relief and pension fund Net Pension Obligation.
(2)
12/31/2003 balances include a $223,386 prior-period adjustment related to the write-off of prior-year storm charges.
(3)
12/31/2003 balances include a $15,135,901 reclassification to reflect the proper balances of invested in capital
assets, net of related debt and unrestricted net assets.
The largest component of the City’s net assets, $278.7 million, or 76%, is its investment in capital
assets, less debt related to the acquisition or construction of those assets. These capital assets,
such as streets, parks, trails, and vehicles and equipment related to police, fire and public works, are
used to provide services to the citizens. As a result, these assets are not for sale, and are therefore
not available to fund current and future City obligations. The City elected the GASB 34 reporting
option to include all general infrastructure of the City acquired or substantially renovated since 1980.
The next largest component of net assets, $31.8 million, represents the unrestricted net assets of the
City’s business-type activities and may only be spent on activities related to one of the four City
utilities (water, sanitary sewer, storm water and solid waste) or to the city-owned ventures (airport,
golf course, cemetery, and commercial retail property). Examples of utility activities include
maintenance of water/sewer mains, pump and lift stations, storm drain flushing, water meter reading,
and garbage collection. Activities related to the other city-owned ventures include maintenance of
hangars and runways at the airport, grooming and landscaping at the golf course and cemetery, and
developing tenant space at the Sound Transit parking garage.
$27.6 million of net assets are restricted to purposes such as capital project construction, debt
service, mitigation, and endowment.
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CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
The remaining net assets of the City may be used for functions such as public safety employee
salaries and supplies, park and road maintenance, and other general government services.
Changes in Net Assets
The change in net assets represents the increase or decrease in City net assets resulting from its
various activities.
Following is a condensed version of the City’s changes in net assets. The table shows the revenues,
expenses and related changes in net assets for both governmental-type and business-type activities:
City of Auburn's Changes in Net Assets
Governmental ActivitiesBusiness-type ActivitiesTotal
(1) (2)(3)
20042003 20042003 20042003
Revenues:
Program revenues
Charges for services6,893,064$ 5,208,418$ 31,747,066$ 31,233,491$ 38,640,130$ 36,441,909$
Operating grants and contributions2,178,951 1,959,919 33,384 33,384 2,212,335 1,993,303
Capital grants and contributions5,192,593 12,336,814 4,351,278 6,985,742 9,543,871 19,322,556
General revenues
Property taxes12,598,954 12,440,724 - - 12,598,954 12,440,724
Sales taxes15,429,527 13,970,383 - - 15,429,527 13,970,383
Interfund utility taxes1,714,102 1,696,389 - - 1,714,102 1,696,389
Admission & utility taxes5,012,010 4,225,725 - - 5,012,010 4,225,725
Excise taxes3,384,515 3,401,498 - - 3,384,515 3,401,498
Other taxes1,678,485 1,699,275 - - 1,678,485 1,699,275
Investment earnings708,259 769,239 421,803 306,862 1,130,062 1,076,101
Miscellaneous revenue192,469 96,168 1,287,528 545,087 1,479,997 641,255
Total revenues54,982,929 57,804,552 37,841,059 39,104,566 92,823,988 96,909,118
Expenses:
General government4,235,953 5,968,367 - - 4,235,953 5,968,367
Public safety26,076,348 23,001,174 - - 26,076,348 23,001,174
Transportation8,239,795 3,071,195 - - 8,239,795 3,071,195
Physical environment2,415,047 1,845,059 - - 2,415,047 1,845,059
Culture and recreation4,949,050 5,108,683 - - 4,949,050 5,108,683
Economic environment2,866,473 1,379,552 - - 2,866,473 1,379,552
Health and human services597,423 639,678 - - 597,423 639,678
Interest on long-term debt362,051 322,653 - - 362,051 322,653
Water- 6,913,709 6,868,291 6,913,709 6,868,291
Sanitary sewer- 11,207,786 9,949,763 11,207,786 9,949,763
Storm drainage- 3,169,350 2,955,179 3,169,350 2,955,179
Solid waste- 8,645,372 8,553,801 8,645,372 8,553,801
Other business-type activities- 2,597,475 2,605,778 2,597,475 2,605,778
Total expenses49,742,140 41,336,361 32,533,692 30,932,812 82,275,832 72,269,173
Increase in net assets before transfers5,240,789 16,468,191 5,307,367 8,171,754 10,548,156 24,639,945
Transfers627,000 (1,225,054) (627,000) 1,225,054 - -
Change in net assets5,867,789 15,243,137 4,680,367 9,396,808 10,548,156 24,639,945
Net assets-beginning of period220,159,436 204,916,299 135,922,186 126,525,378 356,081,622 331,441,677
Net assets-end of period226,027,225$ 220,159,436$ 140,602,553$ 135,922,186$ 366,629,778$ 356,081,622$
(1)
Beginning of period net assets include a $129,775,322 prior-period adjustment related to GASB 34 infrastructure valuation and
a $125,933 prior period adjustment related to the fire relief and pension fund Net Pension Obligation. Public Safety expense also
includes a $44,527 adjustment for the Net Pension Obligation.
(2)
Operatinggrants and contributions, capital grants and contributions, and other taxes include reclassifications in the amounts
of $1,181,797, $295,795, and $1,477,592, respectively.
(3)
Beginning of period net assets include a $223,386 prior-period adjustment related to the write-off of prior-year storm charges.
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CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
Governmental activities contributed $5.9 million to the total increase in city net assets. Reasons for
this increase include:
Developers donated $2.1 million in various infrastructure assets, such as streets, sidewalks,
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streetlights, and park improvements.
Sales tax revenue was $2.0 million higher than anticipated.
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Revenues to fund capital assets are recorded as program or general revenues in the
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statement of activities. However, the actual assets purchased or construction costs are not
recorded as expenses in the year purchased or constructed. Instead, the costs are recorded
as long-term assets and are depreciated over their useful life.
General tax revenue rose marginally during 2004:
Property tax revenue rose by $158,230, or 1.3%. This increase is slightly higher than the
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statutory maximum of 1%, and is due to new construction.
Sales tax collections had a healthy increase of $1.5 million, or 11.8%.
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Utility and admission tax revenue, driven by a utility tax increase, rose by:
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Admission tax $172,731
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Electric utility tax $214,263
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Natural gas utility tax $220,221
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Telephone utility tax $193,399
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Governmental activity expenses rose $8.3 million, or 20%. Two-thirds of this increase, or $5.6
million, is related to depreciation of the city’s infrastructure. Since 2004 was the first year that
infrastructure depreciation was calculated as required by GASB 34, there is no such depreciation
expense in 2003. Most of the remaining increase is related to public safety spending.
The next chart summarizes the government activity revenue by source, while the second one reflects
the specific programs’ revenues and related expenses for the various activities of the city. Gaps
between specific programs’ revenues and their related expenditures are funded through general tax
revenues.
Revenues by Source-Government Activities
Other revenue
Charges for services
2%
13%
Other taxes
9%
Capital grants &
contributions
Utility & admission taxes
4%
9%
Interfund utility taxes
Operating grants &
3%
contributions
9%
Sales taxes
Property taxes
28%
23%
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CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
Program Expenses and Revenues-Governmental Activities
$30,000,000
$25,000,000
$20,000,000
Program revenues
$15,000,000
Expenses
$10,000,000
$5,000,000
$0
The transportation program revenues as depicted in the chart above include only $3.7 million in
spendable funds. The remainder relates to $1.4 million of infrastructure donated by developers.
Business-type net assets increased by $4.7 million. Key components of this increase include:
$4.3 million, or 91%, is related to utility capital contributions. Of this amount, $2.8 million is
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related to utility infrastructure contributed to the City by developers and $1.5 million is related
to new customer connections.
Income (loss) before capital contributions and transfers amounted to:
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Water fund: $495,795
o
Sanitary sewer fund: $42,275
o
Storm fund: ($14,537)
o
Solid waste fund: ($123,410)
o
Non-major funds: $411,985
o
Transfers-out totaled $657,000.
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CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
Below is a chart that shows the relative net asset balances for each business-type fund:
Business-type Net Assets-By Fund
Golf course
3%
Commercial retail
Cemetery
1%
1%
Airport
Solid waste
5%
3%
Water
32%
Storm drainage
23%
Sanitary sewer
32%
The majority of net assets in the City’s enterprise funds relate to capital asset infrastructure, such as
water and sewer mains, the airport runway, and the golf course land. As such, most of the net
assets are not available to support the ongoing expenses of the funds. Following are two charts that
contrast the total net assets to the spendable portion of net assets for each enterprise fund:
Comparison of Total Net Assets to Spendable Net Assets
Comparison of Total Net Assets to Spendable Net Assets
Utility Funds
Other Enterprise Funds
Spendable net assets
Spendable net assets
Total net assets
$50,000,000
$7,000,000
Total net assets
$45,000,000
$6,000,000
$40,000,000
$35,000,000
$5,000,000
$30,000,000
$4,000,000
$25,000,000
$20,000,000
$3,000,000
$15,000,000
$10,000,000
$2,000,000
$5,000,000
$1,000,000
$0
Water
$0
Sanitary sewer
Airport
Storm
Cemetery
Solid waste
drainage
Golf course
Commercial
retail
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CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
The first chart below shows the various sources of business-type revenue, while the second depicts
the revenues and expenses for business-type funds:
Business-type Activity Revenues - By Source
Investment earnings
1%
Business-type
miscellaneous
income
4%
Capital contributions
11%
Charges for services
84%
Business-type Activity Revenues and Expenses
Before Capital Contributions and Transfers
$12,000,000
$10,000,000
$8,000,000
Revenues
$6,000,000
Expenses
$4,000,000
$2,000,000
$0
Water Sanitary sewer Storm drainage Solid waste Minor business-
type activities
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CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
The following two charts show the percentage of revenues and expenses that relate to both
governmental and business-type activities:
Comparison of Total Revenues-2004
Business-type
activities
41%
Governmental
59%
Comparison of Total Expenses-2004
Business-type
activities
40%
Governmental
60%
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CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
Financial Analysis of Governmental Funds
The purpose of the City’s government funds is to report on near-term revenues/financial resources
and expenditures. This information helps determine the City’s financial requirements in the near
future. Specifically, fund balance is a good indicator of the City’s financial resources.
As of December 31, 2004, the City’s governmental funds had combined fund balances of
$46,659,128, an increase of $3,088,751 or 7.1%. This increase is related to:
General fund $2,205,755
?
Arterial street fund $568,326
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Capital improvement fund ($89,940)
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Other governmental funds $404,610
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Of the government funds’ total fund balances, $45,378,734 is unreserved. Of this unreserved total,
$13,852,020 is earmarked for capital improvement projects and $4,086,591 is earmarked for arterial
street projects. Of the $1,280,394 of fund balances that are reserved, $1,111,727 is reserved for
endowment.
The general fund is the primary operating fund of the City. All receipts and payments of ordinary city
operations are processed through it unless they are required to be accounted for in another fund. At
the end of 2004, the general fund had a fund balance of $20,702,250, of which substantially all is
unreserved.
Other funds that had significant fund balances include:
$4,086,591 in the arterial street fund; used for arterial streets within the city.
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$13,775,871 in the capital projects fund; used for various governmental capital asset
?
projects.
$4,387,519 in the cumulative reserve fund; used for revenue stabilization or capital projects.
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$1,866,645 in the mitigation fund; used to collect fees from new development to mitigate the
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cost of new roads and fire service.
$1,333,747 in the cemetery endowed care fund; used for maintenance of the cemetery.
?
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CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
The following chart shows the relative fund balances for governmental funds:
Governmental Funds-Fund Balances
All other government
Cemetery
funds
endowment fund
1%
3%
Mitigation fund
4%
Cumulative reserve
fund
9%
General fund
44%
Capital improvement
fund
30%
Arterial street fund
9%
Overall general fund revenues rose from $40,409,620 in 2003 to $44,286,174 in 2004. This increase
of $3,876,554 came from the following sources:
2004 General Fund Revenue Increases-By Source
$1,600,000
Sales tax and licenses and permits
$1,459,144
both include significant one-time
revenue related to construction of the
$1,400,000
new Safeway distribution center
$1,200,000
$992,994
$1,000,000
$786,285
$800,000
$600,000
$400,000
$283,859
$156,718
$140,057
$200,000
$39,784
$17,713
$0
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CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
Financial Analysis of Proprietary Funds
The City’s proprietary funds provide the same type of information as found in the government-wide
financial statements, but in greater detail. Factors affecting the finances of the City’s proprietary
funds have already been addressed in the discussion of the City’s business-type activities.
General Fund Budgetary Highlights
The City budgets annually by adopting a budget at the end of the fiscal year, and then making
adjustments as necessary via budget amendments. Below is a summary of such budget
amendments:
Budgeted general fund balances increased for the following reasons:
Beginning fund balance higher than anticipated$4,583,195
Grants335,700
Property tax275,000
Utility tax290,000
Department reorganization lowered expenses9,700
Transfer-in for projects1,183,300
$6,676,895
Budgeted general fund balances decreased for the following reasons:
Various city projects$1,003,000
City cable TV system expenditures$25,000
HVAC repair expenditures20,000
City Hall remodeling164,000
Various park ballfield projects87,000
Various parks and recreation expenditures121,000
Incarceration expenditures135,000
Auburn Justice Center385,000
Fire station site acquisition725,000
Various public safety expenditures122,700
Reallocation of airport budget due to management contract50,600
City Gateway program14,900
Increase in retiree's healthcare expenditures50,000
Various professional expenditures256,500
King County Historical Preservation Grant expenditures5,000
Neighborhood Grant program24,000
Latino Neighborhood & Olympic Middle School Learning Center88,000
$3,276,700
Significant variances between the final budget and actual results include:
Sales tax revenue was much stronger than anticipated, resulting in a positive variance to
?
budget of $2.0 million.
Admission and utility tax collections were nearly $472,000 higher than budgeted, with over
?
$228,000 of the variance coming from admission taxes, and the rest from utility taxes.
28
CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
Licenses and permits revenue was much higher than normal, with total collections over $1.3
?
million more than budgeted. This is indicative of a very strong building market, with projects
such as a new Safeway regional distribution center, multi-family and residential
developments in the Lakeland area, and a generally high level of development activity
throughout the city.
Charges for services were higher than budgeted due to plan check fee revenue of $160,000
?
more than anticipated, plus a change in accounting practice related to developer street
extensions which resulted in the creation of a new fee account for which no budget was
created, as no new revenue was coming into the city. Slightly over $250,000 went into this
new account.
$1.9 million in unspent salaries due to positions that were left unfilled for significant periods
?
of time and budgeted retirement contributions that were therefore not required.
$1.0 million in budgeted public safety expenditures were not made.
?
$830,000 in city projects was not spent.
?
$437,000 of planned computer purchases were not made.
?
Capital Asset and Debt Administration
Capital Assets
The City’s investment in capital assets for both its governmental and business-type activities as of
December 31, 2004 totaled nearly $312 million (net of accumulated depreciation). This investment
in capital assets includes land, buildings, improvements, machinery and equipment, construction in
progress, utility transmission/distribution systems, roads, bridges, and other infrastructure.
Major capital asset changes during the year include:
The city completed its GASB 34 infrastructure valuation project during the year. This project
?
resulted in the booking of $129.2 million of additional city infrastructure. Comparison
schedules that follow and in the government-wide financial analysis section reflect this
infrastructure as if it had been included last year, since the infrastructure indeed was already
in place. It is only in comparison to the 2003 CAFR that this increase can be seen.
The Auburn Justice Center was completed in 2004 and was accounted for as a capital lease.
?
This added $10.3 million to capital assets.
Private developers contributed $2.8 million in utility infrastructure and $2.1 million in streets,
?
streetlights, and park facilities.
Arterial street projects totaling $2.7 million were added.
?
$1.0 million was spent on land for a new fire station and new fire department aid units.
?
Several other parcels of land were acquired for future city use.
?
The airport completed a runway overlay project at a cost of approximately $887,000
?
Several utility projects were completed at a cost of $416,000.
?
29
CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
A summary of the City’s net assets follows:
City of Auburn
Summary of Capital Assets (net of depreciation)
Governmental ActivitiesBusiness-type ActivitiesTotal
As of 12/31/04As of 12/31/03As of 12/31/04As of 12/31/03As of 12/31/04As of 12/31/03
Land34,654,519$ $32,273,96513,483,967$ $12,867,52748,138,486$ $45,141,492
Building16,042,592 4,693,717 4,463,935 3,958,416 20,506,527 8,652,133
Joint venture2,877,405 4,316,946 - - 2,877,405 4,316,946
Site improvements2,781,786 2,559,727 103,088,566 102,858,124 105,870,352 105,417,851
Equipment6,618,297 5,358,190 1,016,204 1,094,144 7,634,501 6,452,334
Infrastructure124,062,946 127,213,949 - - 124,062,946 127,213,949
Construction in progress1,330,275 619,893 1,557,005 1,968,837 2,887,280 2,588,730
$188,367,820$177,036,387$123,609,677$122,747,048$311,977,497$299,783,435
Government activity balances at 12/31/03 include the GASB 34 infrastructure adjustment referred to
previously.Further information can be found in Note 7.
Long-term Debt
At the end of the current fiscal year, the City had total bonded debt outstanding of $15,202,354. Of
this amount, $6,754,000 is general obligation bonds, $8,220,000 is revenue bonds for the water and
storm utilities, and $228,354 is special assessment debt with government commitment. The City
currently maintains a rating of A1 with Moody’s for its general obligation debt.
The following schedule summarizes the City’s bonded debt:
Summary of bonded debt
GovernmentalBusiness-type
ActivitiesActivitiesTotal
General obligation bonds$5,214,000$1,540,000$6,754,000
Special assessment bonds228,354 - 228,354
Revenue bonds- 8,220,000 8,220,000
$5,442,354$9,760,000$15,202,354
In 2002, the City entered into a long-term capital lease agreement for a new justice center. When
the Auburn Justice Center was opened in November, 2004, this capital lease was recorded on the
City’s books as new long-term debt of $10,350,000. As of December 31, 2004, the outstanding
balance of this capital lease was $10,322,787.
Below is a summary of additional, non-bonded long-term debt of the City:
Other Long-term Debt
Capital Lease$10,322,787
Public Works Trust Fund loans7,066,042
Employee leave benefits3,063,392
$20,452,221
30
CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
Washington State law limits the amount of general obligation debt a governmental entity may issue
to 7.5% of its total assessed value. Of the 7.5% limit, 2.5% is for general purposes, 2.5% is for open
spaces/parks, and 2.5% is for utilities. Non-voted (limited tax) general obligation indebtedness is
limited to 1.5% of assessed valuation. The combination of unlimited tax and limited tax general
obligation debt for all purposes cannot exceed 7.5% of assessed valuation. Following is a summary
of the City’s legal debt limitations and capacity:
City of Auburn
Summary of legal debt limits and capacity
Auburn
With a Vote
Legal LimitationCapacity
General$116,927,318$99,879,120
Open spaces/parks116,927,318116,927,318
Utilities116,927,318116,927,318
Totals$350,781,954$333,733,756
Without a Vote
General$70,156,391$53,108,198
Totals$70,156,391$53,108,198
Additional information can be found in Note 10 and in the statistical section of this report.
Economic Factors
The outlook for 2005 and beyond is positive. The economy in the county and the City has been
recovering. Boeing’s diminishing presence has opened up opportunity for other business to move
into the area. Some of the most recent and significant projects are:
Safeway purchased 137 acres from Boeing in 2002, and is constructing a food distribution and
?
packaging center. This project is expected to generate over 1,650 direct and indirect new jobs
in Auburn. The City received a $2,000,000 grant from the U.S. Economic Development
Administration for the development of “C” Street SW during 2004 to further enable development
of the Safeway property.
Auburn Regional Medical Center is planning an 11,000 square foot cancer treatment center
?
adjacent to the hospital, along with a public/private mix 300-stall parking garage.
A full city block in the heart of downtown is being re-developed into a multi-use complex,
?
including a full-service hotel, condominiums, retail/restaurant space, and an indoor water park.
Plans are moving forward to develop a large tract of land in the city’s north end that for years has
?
been the site of a drive-in movie complex.
The City issued 766 residential permits in 2004 for new construction, remodels, and rehabs. In
?
addition, 217 commercial and industrial permits were issued for new projects and renovations.
31
CITY OF AUBURN: 2004 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
Requests for Information
This financial report is designed to provide a general overview of the City of Auburn’s finances for
readers with an interest in the City’s finances. Questions concerning this report, or requests for
additional information, may be addressed to the Finance Director, City of Auburn, 25 West Main
Street, Auburn WA 98001-4998.
32
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City presents two government-wide financial statements:
TheStatement of Net Assets
provides information all on city assets and
liabilities, with the difference between the two reported as net assets.
The Statement of Activities
is focused on both the gross and net cost of
various functions, including both governmental and business-type activities,
.
which are supported by the City’s general tax and other revenues
33
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
34
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF NET ASSETS
DECEMBER 31, 2004
PRIMARY GOVERNMENT
GOVERNMENTALBUSINESS-TYPE
ACTIVITIESACTIVITIESTOTAL
ASSETS:
CASH AND CASH EQUIVALENTS (Note 3)40,221,773$ 17,745,202$ 57,966,975$
INVESTMENTS (Note 3)13,905,541 8,485,364 22,390,905
RECEIVABLES:
TAXES -331,918 331,918
CUSTOMER ACCOUNTS65,662 5,091,478 5,157,140
OTHER RECEIVABLES1,237,483 59,687 1,297,170
SPECIAL ASSESSMENTS1,189,111 - 1,189,111
DUE FROM OTHER GOVERNMENTAL UNITS (Note 6)3,052,317 53,577 3,105,894
INTERNAL BALANCES(176,863) 176,863 -
MATERIALS AND SUPPLIES INVENTORY77,218 114,007 191,225
LONG-TERM CONTRACTS AND NOTES- 1,877,716 1,877,716
DEFERRED CHARGES (Note 9)2,136,565 124,884 2,261,449
RESTRICTED ASSETS:
TEMPORARILY RESTRICTED:
CASH AND CASH EQUIVALENTS (Note 3)- 3,879,692 3,879,692
DEPRECIABLE CAPITAL ASSETS (NET OF ACCUMULATED
DEPRECIATION): (Note 7)152,383,026 108,568,705 260,951,731
NON-DEPRECIABLE CAPITAL ASSETS35,984,794 15,040,972 51,025,766
TOTAL ASSETS2 161,218,14750,408,545 411,626,692
LIABILITIES:
CURRENT LIABILITIES:
ACCOUNTS PAYABLE4, 1,793,746016,764 5,810,510
DUE TO OTHER GOVERNMENTAL UNITS17,760 - 17,760
OTHER LIABILITIES PAYABLE294,261 142,733 436,994
PAYABLE FROM RESTRICTED ASSETS:
ACCRUED INTEREST 484,816- 484,816
DEPOSITS 83,194- 83,194
NONCURRENT LIABILITIES:
DUE WITHIN ONE YEAR (Note 10)1,739,106 1,781,354 3,520,460
DUE IN MORE THAN ONE YEAR (Note 10)16,416,932 15,488,829 31,905,761
SPEC ASSESSMENT DEBT WITH GOV'T COMMITMENT (Note 10)228,354 - 228,354
UNEARNED REVENUE1,624,215 840,922 2,465,137
DEFERRED CREDITS43,928 - 43,928
TOTAL LIABILITIES24,381,320 20,615,594 44,996,914
NET ASSETS:
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT171,921,373 106,783,634 278,705,007
RESTRICTED NET ASSETS:
CAPITAL PROJECTS13,866,678 - 13,866,678
SPECIAL REVENUE FUNDS10,624,400 - 10,624,400
DEBT SERVICE 1,248,90012,311 1,261,211
NON EXPENDABLE PERPETUAL CARE1,111,727 - 1,111,727
OTHER PURPOSES 720,909- 720,909
UNRESTRICTED NET ASSETS28,490,736 31,849,110 60,339,846
TOTAL NET ASSETS226,027,225$ 140,602,553$ 366,629,778$
The notes to the financial statements are an integral part of this statement.
35
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2004
Page 1 of 2
PROGRAM REVENUES
OPERATINGCAPITAL
CHARGES GRANTS ANDGRANTS AND
EXPENSESFOR SERVICESCONTRIBUTIONSCONTRIBUTIONS
FUNCTIONS / PROGRAMS:
PRIMARY GOVERNMENT
GOVERNMENTAL ACTIVITIES:
GENERAL GOVERNMENT4,235,953$ 561,013$ 180,508$ -$
PUBLIC SAFETY26,076,348 1,767,687 1,495,473 -
TRANSPORTATION8,239,795 447,036 - 4,639,338
PHYSICAL ENVIRONMENT2,415,047 365,681 64,947 45,300
CULTURE AND RECREATION4,949,050 654,417 46,746 507,955
ECONOMIC ENVIRONMENT2,866,473 3,097,230 305,093 -
HEALTH AND HUMAN SERVICES597,423 - 86,184 -
INTEREST ON LONG-TERM DEBT362,051 - - -
6,893,06449,742,140 2,178,951 5,192,593
BUSINESS-TYPE ACTIVITIES:
WATER6,913,709 7,228,778 - 1,247,925
SANITARY SEWER11,207,786 10,800,906 - 2,832,987
STORM DRAINAGE3,169,350 3,073,559 - 270,366
SOLID WASTE8,645,372 8,443,044 33,384 -
NONMAJOR BUSINESS-TYPE ACTIVITIES2,597,476 2,200,779 - -
31,747,06632,533,693 33,384 4,351,278
TOTAL PRIMARY GOVERNMENT82,275,833$ 38,640,130$ 2,212,335$ 9,543,871$
GENERAL REVENUES:
TAXES:
PROPERTY
RETAIL SALES AND USE
INTERFUND UTILITY
UTILITY
EXCISE
OTHER
INVESTMENT EARNINGS
MISCELLANEOUS
GAIN ON SALE OF CAPITAL ASSETS
CONTRIBUTIONS TO ENDOWMENT FUNDS
TRANSFERS
TOTAL GENERAL REVENUES
CHANGE IN NET ASSETS
NET ASSETS - BEGINNING (Note 17)
NET ASSETS - ENDING
The notes to the financial statements are an integral part of this statement.
36
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
Page 2 of 2
NET (EXPENSE) REVENUE AND
CHANGES IN NET ASSETS
GOVERNMENTALBUSINESS-TYPE
ACTIVITIESACTIVITYTOTAL
$ -(3,494,432)$ (3,494,432)$
-(22,813,188) (22,813,188)
-(3,153,421) (3,153,421)
-(1,939,119) (1,939,119)
-(3,739,932) (3,739,932)
-535,850 535,850
-(511,239) (511,239)
-(362,051) (362,051)
-(35,477,532) (35,477,532)
1,562,994- 1,562,994
2,426,107- 2,426,107
174,575- 174,575
(168,944)- (168,944)
(396,697)- (396,697)
3,598,035- 3,598,035
$ 3,598,035(35,477,532)$ (31,879,497)$
$ -12,598,954$ 12,598,954$
-15,429,527 15,429,527
-1,714,102 1,714,102
-5,012,010 5,012,010
-3,384,515 3,384,515
-1,678,485 1,678,485
421,803708,259 1,130,062
1,273,608- 1,273,608
13,921147,169 161,090
-45,300 45,300
(627,000)627,000 -
1,082,33241,345,321 42,427,653
4,680,3675,867,789 10,548,156
135,922,186220,159,436 356,081,622
$ 140,602,553226,027,225$ 366,629,778$
37
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
MAJOR GOVERNMENTAL FUNDS
General Fund
The general fund accounts for all of the City's financial resources except those
required by statute or generally accepted accounting principles to be accounted
for in another fund. As is the case with most municipalities, the general fund is
the largest and most important accounting entity of the City. As noted in the
statements that follow, the general fund receives the bulk of its revenues from
local taxes, followed by State shared revenues, service charges, and other
income.
The general fund is accounted for on a modified accrual basis. Annual budgets
are adopted with appropriations lapsing at year-end.
Arterial Street Fund
This fund is supported by the State's one-half cent gas tax and is used for major
street construction.
Capital Improvement Projects Fund
This fund accounts for major capital acquisitions, and streets and parks
construction projects.
38
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2004
OTHERTOTAL
GENERAL ARTERIAL CAPITALGOVERNMENTALGOVERNMENTAL
FUNDSTREETIMPROVEMENTFUNDSFUNDS
ASSETS:
CASH AND CASH EQUIVALENTS16,759,607$ 2,202,853$ 9,803,578$ 5,188,133$ 33,954,171$
INVESTMENTS4,451,563 1,469,362 3,979,375 3,009,928 12,910,228
RECEIVABLES:
TAXES331,914 - - 4 331,918
CUSTOMER ACCOUNTS61,180 - 4,482 - 65,662
OTHER RECEIVABLES1,185,118 - 35,126 - 1,220,244
SPECIAL ASSESSMENTS- - - 1,189,111 1,189,111
INTERFUND RECEIVABLE84,000 - - - 84,000
LONG-TERM NOTES AND CONTRACTS- - 667,399 667,399
DUE FROM OTHER GOVERNMENTAL UNITS1,761,118 1,107,855 - 183,344 3,052,317
TOTAL ASSETS24,634,500$ 4,780,070$ 14,489,960$ 9,570,520$ 53,475,050$
LIABILITIES AND FUND BALANCES:
CURRENT PAYABLES3,415,663$ 265,086$ 11,564$ 178,522$ 3,870,835$
CUSTOMER DEPOSITS163,125 - - - 163,125
INTERFUND PAYABLE- - - 84,000 84,000
DUE TO OTHER GOVERNMENTAL UNITS- - - 17,760 17,760
OTHER LIABILITIES PAYABLE276 - - - 276
DEFERRED REVENUE353,186 428,393 702,525 1,195,822 2,679,926
TOTAL LIABILITIES3,932,250 693,479 714,089 1,476,104 6,815,922
FUND BALANCES:
RESERVED FOR:
PETTY CASH9,625 - - - 9,625
DEBT SERVICE- - - 159,042 159,042
ENDOWMENT- - - 1,111,727 1,111,727
UNRESERVED, REPORTED IN:
GENERAL FUND20,692,625 - - - 20,692,625
SPECIAL REVENUE FUNDS- 4,086,591 - 6,525,478 10,612,069
CAPITAL PROJECT FUNDS- - 13,775,871 76,149 13,852,020
PERMANENT FUND- - - 222,020 222,020
TOTAL FUND BALANCES20,702,250 4,086,591 13,775,871 8,094,416 46,659,128
TOTAL LIABILITIES AND FUND BALANCES24,634,500$ 4,780,070$ 14,489,960$ 9,570,520$ 53,475,050$
Total governmental fund balances as reported on this statement$ 46,659,128
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and therefore not reported in the funds184,779,552
Other long-term assets are not available to pay for current-period expenditures and therefore are deferred in the funds.
Prepaid expenses1,968,385
Net pension obligation122,820
Interest receivable on investments45,249
Unearned revenue beyond the city's 30-day measurable and available period353,186
Deferred charges for bond issue costs1,432
2,491,072
Internal service funds are used by management to charge the cost of certain activities, such as insurance and fleet
maintenance, to individual funds. The assets and liabilities of these internal service funds are included in governmental10,553,103
activities in the statement of net assets.
Some liabilities are not due and payable in the current period and therefore are not reported in the funds
Bonds and loans payable (15,765,141)
Interest payable(130,796)
Compensated absences payable(2,559,693)
(18,455,630)
Net assets of government activities as reported on the statement of net assets$ 226,027,225
39
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2004
OTHERTOTAL
GENERAL ARTERIAL CAPITALGOVERNMENTALGOVERNMENTAL
FUNDSTREETIMPROVEMENTFUNDSFUNDS
REVENUES:
TAXES:
PROPERTY12,680,361$ -$ -$ -$ 12,680,361$
RETAIL SALES & USE15,429,527 - - - 15,429,527
INTERFUND UTILITY1,714,102 - - - 1,714,102
UTILITY5,012,010 - - - 5,012,010
EXCISE 1,084,917 - 2,244,077 55,521 3,384,515
OTHER- - - 38,284 38,284
LICENSES AND PERMITS2,248,576 - - - 2,248,576
INTERGOVERNMENTAL2,205,983 1,415,606 - 1,075,912 4,697,501
CHARGES FOR SERVICES2,211,571 21,981 - 1,159,626 3,393,178
FINES AND FORFEITURES845,721 - - - 845,721
SPECIAL ASSESSMENTS- - - 127,976 127,976
INVESTMENT EARNINGS318,222 - - 18,220 336,442
MISCELLANEOUS535,184 1,470,736 191,672 254,876 2,452,468
TOTAL REVENUES44,286,174 2,908,323 2,435,749 2,730,415 52,360,661
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT5,472,630 - - - 5,472,630
SECURITY OF PERSONS AND PROPERTY25,725,943 - - 144,930 25,870,873
PHYSICAL ENVIRONMENT2,304,248 - - - 2,304,248
TRANSPORTATION2,150,847 3,001,497 - - 5,152,344
ECONOMIC ENVIRONMENT2,404,483 - - 392,419 2,796,902
HEALTH AND HUMAN SERVICES490,190 - - 107,233 597,423
CULTURE AND RECREATION4,684,936 - - 121,281 4,806,217
DEBT SERVICE:
PRINCIPAL49,162 - 689,643 279,550 1,018,355
INTEREST AND OTHER COSTS63,916 - 12,422 171,667 248,005
CAPITAL OUTLAY- - 12,090,566 10,400 12,100,966
TOTAL EXPENDITURES43,346,355 3,001,497 12,792,631 1,227,480 60,367,963
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES939,819 (93,174) (10,356,882) 1,502,935 (8,007,302)
OTHER FINANCING SOURCES (USES):
SALE OF FIXED ASSETS119,053 - - - 119,053
CAPITAL LEASES- - 10,350,000 - 10,350,000
TRANSFERS IN1,980,883 771,500 625,000 569,041 3,946,424
TRANSFERS OUT(834,000) (110,000) (708,058) (1,667,366) (3,319,424)
TOTAL OTHER FINANCING SOURCES AND USES1,265,936 661,500 10,266,942 (1,098,325) 11,096,053
NET CHANGE IN FUND BALANCES2,205,755 568,326 (89,940) 404,610 3,088,751
FUND BALANCES - BEGINNING18,496,495 3,518,265 13,865,811 7,689,806 43,570,377
FUND BALANCES - ENDING20,702,250$ 4,086,591$ 13,775,871$ 8,094,416$ 46,659,128$
The notes to the financial statements are an integral part of this statement.
40
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES OF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2004
Net change in fund balances per the Statement of Revenues, Expenditures and Changes in Fund Balance3,088,751$
Amount reported as change in net assets in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which depreciation ($7,033,582)
exceeded capital outlay ($5,785,758) in the current period.(1,247,824)
Government funds report prepaid expenses as expenditures. However, in the statement
of activities the cost of those expenses is allocated over their estimated useful lives.720,000
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Deferred revenue(73,169)
Amortization of bond premium3,137
Investment interest receivable(31,349)
(101,381)
Developer contributions of infrastructure assets are reported as revenue in the statement of
activities, but do not provide current financial resources and are not reported as fund revenue.2,088,219
Repayment of the principal of long-term debt consumes the current financial resources of
governmental funds but has no effect on the net assets.1,157,355
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and fleet maintenance, to individual funds. The net revenue (expense)
of certain internal service funds is reported with governmental activities.519,514
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.
Amortization of debt issue costs(3,240)
Amortization of prepaid expenses(109,355)
Change in accrued interest payable(95,234)
Change in net pension obligation(47,640)
Change in compensated absences payable(101,376)
(356,845)
Change in net assets on the Statement of Activities$ 5,867,789
41
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
42
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
MAJOR PROPRIETARY FUNDS
ENTERPRISE FUNDS
The City's enterprise funds are used to account for operations that are financed
and operated in a manner similar to private business operations. The goods and
services these funds provide to the general public are primarily financed by
service charges. Enterprise funds are self-supporting and use the accrual
method of accounting. Auburn has four major enterprise funds.
The Water Fund
This fund accounts for all maintenance, construction, and debt service
requirements associated with the water system.
The Sanitary Sewer Fund
This fund accounts for maintenance, construction, and debt requirements for
Auburn's sanitary sewer system.
The Storm Drainage Fund
This fund accounts for the maintenance, construction and debt service
requirements of Auburn's storm drainage system.
The Solid Waste Fund
Garbage collection services for the City are accounted for in this fund, supported
almost entirely by garbage collection fees. Expenses include payment to the
City's garbage contractor and other service charges.
43
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
DECEMBER 31, 2004
GOVERNMENTAL
NON-MAJORTOTALACTIVITIES
SANITARYSTORMSOLIDPROPRIETARYPROPRIETARYINTERNAL
WATERSEWERDRAINAGEWASTEFUNDSFUNDSSERVICE FUNDS
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS4,529,193$ 8,000,527$ 2,909,516$ 1,342,533$ 963,433$ 17,745,202$ 6,267,602$
INVESTMENTS3,478,437 2,469,855 1,543,922 993,150 - 8,485,364 995,313
CUSTOMER ACCOUNTS901,232 1,748,956 764,626 1,659,865 16,799 5,091,478 -
OTHER RECEIVABLES32,274 6,917 16,957 3,539 - 59,687 7,116
DUE FROM OTHER GOVERNMENTAL UNITS- - - 17,638 35,939 53,577
-
INVENTORIES99,606 2,124 5,264 - 7,013 114,007 77,218
TOTAL CURRENT ASSETS9,040,742 12,228,379 5,240,285 4,016,725 1,023,184 31,549,315 7,347,249
NONCURRENT RESTRICTED ASSETS:
RESTRICTED CASH, CASH EQUIVALENTS
AND INVESTMENTS1,991,160 603,757 1,144,431 - 140,344 3,879,692 -
TOTAL RESTRICTED ASSETS1,991,160 603,757 1,144,431 - 140,344 3,879,692 -
CAPITAL ASSETS:
LAND897,971 1,654,958 5,011,418 - 5,919,620 13,483,967 -
BUILDINGS AND EQUIPMENT2,697,394 1,014,344 114,615 461,674 6,044,303 10,332,330 7,808,582
32,640,891 - 8,729,103 147,906,121 46,591
IMPROVEMENTS OTHER THAN BUILDINGS67,356,126 39,180,001
CONSTRUCTION IN PROGRESS477,173 652,720 295,938 - 131,174 1,557,005 -
LESS: ACCUMULATED DEPRECIATION(24,034,632) (11,208,703) (8,837,014) (143,950) (5,445,447) (49,669,746) (4,266,905)
TOTAL CAPITAL ASSETS (NET OF A/D)47,394,032 31,293,320 29,225,848 317,724 15,378,753 123,609,677 3,588,268
OTHER NONCURRENT ASSETS:
LONG-TERM CONTRACTS AND NOTES- 1,838,400 - - 39,316 1,877,716
-
DEFERRED CHARGES66,713 - 28,067 - 30,104 124,884 -
TOTAL OTHER NONCURRENT ASSETS66,713 1,838,400 28,067 - 69,420 2,002,600
TOTAL ASSETS58,492,647 45,963,856 35,638,631 4,334,449 16,611,701 161,041,284 10,935,517
LIABILITIES:
CURRENT LIABILITIES:
CURRENT PAYABLES442,986 324,906 129,120 727,425 169,309 1,793,746 145,929
CUSTOMER DEPOSITS30,987 - - - 3,267 34,254 -
OTHER LIABILITIES PAYABLE29,763 - - - - 29,763
64
LOANS PAYABLE-DUE WITHIN ONE YEAR434,194 - - - - 434,194
-
COMPENSATED ABSENCES119,016 45,542 46,364 6,462 24,776 242,160 32,473
PAYABLE FROM RESTRICTED ASSETS:
REVENUE BONDS737,400 - 327,600 - - 1,065,000 -
GENERAL OBLIGATION BONDS- - - - 40,000 40,000
-
ACCRUED INTEREST342,769 - 142,047 - - 484,816 -
DEPOSITS17,720 11,549 - - 53,925 83,194 -
TOTAL CURRENT LIABILITIES2,154,835 381,997 645,131 733,887 291,277 4,207,127 178,466
NONCURRENT LIABILITIES PAYABLE FROM
RESTRICTED ASSETS:
LONG-TERM BONDS PAYABLE:
REVENUE BONDS5,065,200 - 2,089,800 - - 7,155,000 -
GENERAL OBLIGATION BONDS- - - - 1,500,000 1,500,000
-
TOTAL LIABILITIES PAYABLE
FROM RESTRICTED ASSETS5,065,200 - 2,089,800 - 1,500,000 8,655,000 -
OTHER NONCURRENT LIABILITIES:
DEFERRED REVENUE42,200 162,203 597,204 - 39,315 840,922 -
EMPLOYEE LEAVE BENEFITS99,268 37,986 38,671 5,390 20,666 201,981 27,085
DEFERRED CREDITS56,792 - 21,924 - - 78,716 -
LOANS PAYABLE6,631,848 - - - - 6,631,848 -
TOTAL OTHER NONCURRENT LIABILITIES6,830,108 200,189 657,799 5,390 59,981 7,753,467 27,085
TOTAL LIABILITIES14,050,143 582,186 3,392,730 739,277 1,851,258 20,615,594 205,551
NET ASSETS:
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT34,525,390 31,293,320 26,808,448 317,723 13,838,753 106,783,634 3,588,268
RESTRICTED FOR:
DEBT SERVICE874,116 - 374,784 - - 1,248,900 -
CONSTRUCTION57 637,900 - - 82,952 720,909 -
UNRESTRICTED9,042,941 13,450,450 5,062,669 3,277,449 838,738 31,672,247 7,141,698
TOTAL NET ASSETS44,442,504$ 45,381,670$ 32,245,901$ 3,595,172$ 14,760,443$ 140,425,690$ 10,729,966$
Adjustment to reflect the consolidation
of internal service funds related to
enterprise funds176,863
Net assets of business-type activities140,602,553$
The notes to the financial statements are an integral part of this statement.
44
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2004
GOVERNMENTAL
ACTIVITIES
SANITARYSTORMSOLIDNONMAJORINTERNAL
WATERSEWERDRAINAGEWASTEFUNDSTOTALSERVICE FUNDS
OPERATING REVENUES:
CHARGES FOR SERVICES7,228,778$ 10,800,747$ 3,073,400$ 8,443,044$ 2,130,415$ 31,676,384$ 2,681,204$
INTEREST- - - - 3,276 3,276 -
OTHER OPERATING REVENUE- 159 159 - 67,088 67,406 -
TOTAL OPERATING REVENUES7,228,778 10,800,906 3,073,559 8,443,044 2,200,779 31,747,066 2,681,204
OPERATING EXPENSES:
OPERATIONS & MAINTENANCE2,421,771 8,312,541 835,530 7,472,589 1,231,208 20,273,639 908,907
ADMINISTRATION1,333,524 1,031,572 1,052,752 431,098 644,367 4,493,313 575,409
DEPRECIATION/AMORTIZATION2,056,472 1,179,836 889,869 20,817 569,119 4,716,113 722,253
OTHER OPERATING EXPENSES753,485 827,818 265,844 720,868 61,059 2,629,074 -
TOTAL OPERATING EXPENSES6,565,252 11,351,767 3,043,995 8,645,372 2,505,753 32,112,139 2,206,569
OPERATING INCOME (LOSS)663,526 (550,861) 29,564 (202,328) (304,974) (365,073) 474,635
NON-OPERATING REVENUE (EXPENSE):
INTEREST REVENUE158,678 127,413 75,674 44,109 15,929 421,803 82,409
OTHER NON-OPERATING REVENUES22,048 465,724 5,580 34,809 778,831 1,306,992 13,388
GAIN (LOSS) ON SALE OF CAPITAL ASSETS- - - - 13,921 13,921
28,116
INTEREST EXPENSE(348,457) - (123,243) - (91,723) (563,423) -
OTHER NON-OPERATING EXPENSES- - (2,112) - - (2,112) -
TOTAL NON-OPERATING REVENUE ( EXPENSE)(167,731) 593,137 (44,101) 78,918 716,958 1,177,181 123,913
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS495,795 42,276 (14,537) (123,410) 411,984 812,108 598,548
CAPITAL CONTRIBUTIONS1,247,925 2,832,987 270,366 - - 4,351,278 64,947
TRANSFERS IN- - - - 30,000 30,000 -
TRANSFERS OUT(126,000) (365,000) (166,000) - - (657,000) -
CHANGE IN NET ASSETS
2,510,2631,617,720 89,829 (123,410) 441,984 4,536,386 663,495
TOTAL NET ASSETS BEGINNING OF YEAR42,824,784 42,871,407 32,379,458 3,718,582 14,318,459 136,112,690 10,066,471
PRIOR PERIOD ADJUSTMENT- - (223,386) - - (223,386)
TOTAL NET ASSETS END OF YEAR44,442,504$ 45,381,670$ 32,245,901$ 3,595,172$ 14,760,443$ 140,425,690$ 10,729,966$
Change in Net Assets from this statement4,536,386
Adjustment to reflect the consolidation of internal service fund
activities related to enterprise funds143,981
Change in net assets of business-type activities4,680,367$
The notes to the financial statements are an integral part of this statement.
45
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004
Page 1 of 2
GOVERNMENT
NON-MAJORACTIVITIES
SANITARYSTORMSOLIDENTERPRISEINTERNAL
WATERSEWERDRAINAGEWASTEFUNDTOTALSERVICE FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM USERS7,180,107$ 10,687,202$ 3,039,548$ 8,526,308$ 2,250,537$ 31,683,702$ 2,681,204$
CASH PAID TO SUPPLIERS(1,770,028) (8,040,747) (717,134) (7,523,340) (1,056,390) (19,107,639) (833,401)
CASH PAID FOR TAXES(753,438) (827,817) (265,844) (720,868) (60,627) (2,628,594) (49,496)
CASH PAID FOR INVENTORY(60,721) - (377) - 888 (60,210) (333,334)
CASH PAID TO EMPLOYEES(1,617,677) (1,082,479) (1,190,147) (432,413) (851,395) (5,174,111) (467,030)
OTHER CASH RECEIVED (PAID)- - - - 2 2 -
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES2,978,243 736,159 866,046 (150,313) 283,015 4,713,150 997,943
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
OPERATING TRANSFERS IN- - - - 30,000 30,000 -
OPERATING GRANT RECEIVED- - - 15,746 - 15,746 -
OPERATING TRANSFERS OUT(126,000) (365,000) (166,000) - - (657,000) -
NET CASH PROVIDED (USED) BY NON- -
CAPITAL FINANCING ACTIVITIES(126,000) (365,000) (166,000) 15,746 30,000 (611,254) -
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PROCEEDS FROM SALE OF EQUIPMENT20,000 - - - 13,921 33,921 85,693
PURCHASE OF CAPITAL ASSETS(604,504) (450,743) (484,525) (28,119) (1,218,913) (2,786,804) (898,920)
CONTRIBUTED CAPITAL484,475 1,284,286 235,106 - - 2,003,867 64,947
CAPITAL GRANTS- - - - 815,666 815,666 -
PROCEEDS FROM OTHER GOVERNMENTS- 135,000 - 34,809 - 169,809 -
PROCEEDS FROM INSURANCE SETTLEMENT- - - - - - 13,388
PRINCIPAL PAYMENT ON DEBT(1,061,753) - (310,900) - (35,000) (1,407,653) -
INTEREST PAYMENT ON DEBT(394,500) - (142,137) - (89,694) (626,331) (102)
OTHER CASH RECEIVED (PAID)42,200 162,203 597,204 - - 801,607 -
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES(1,514,082) 1,130,746 (105,252) 6,690 (514,020) (995,918) (734,994)
CASH FLOW FROM INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF INVESTMENTS2,801,406 2,000,000 - 800,000 - 5,601,406 -
PURCHASE OF INVESTMENTS(3,500,000) (1,500,000) (1,000,000) (1,000,000) - (7,000,000) (970,017)
15,930 461,369 49,997
INTEREST RECEIVED147,967 155,226 94,076 48,170
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES(550,627) 655,226 (905,924) (151,830) 15,930 (937,225) (920,020)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS787,534 2,157,131 (311,130) (279,707) (185,075) 2,168,753 (657,071)
CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR5,732,819 6,447,153 4,365,077 1,619,311 1,288,852 19,453,212 6,924,673
CASH AND CASH EQUIVALENTS-END OF YEAR6,520,353$ 8,604,284$ 4,053,947$ 1,339,604$ 1,103,777$ 21,621,965$ 6,267,602$
CASH AT END OF YEAR CONSISTS OF:
OPERATING CASH4,529,193$ 8,000,527$ 2,909,516$ 1,339,604$ 963,433$ 17,742,273$ 6,267,602$
RESTRICTED CASH1,991,160 603,757 1,144,431 - 140,344 3,879,692 -
TOTAL CASH6,520,353$ 8,604,284$ 4,053,947$ 1,339,604$ 1,103,777$ 21,621,965$ 6,267,602$
The notes to the financial statements are an integral part of this statement.
46
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004
Page 2 of 2
GOVERNMENT
NON-MAJORACTIVITIES
SANITARYSTORMSOLIDENTERPRISEINTERNAL
WATERSEWERDRAINAGEWASTEFUNDTOTALSERVICE FUNDS
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
OPERATING INCOME (LOSS)663,526$ (550,860)$ 29,564$ (202,328)$ (304,972)$ (365,070)$ 474,635$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION2,056,472 1,179,836 889,869 20,817 569,119 4,716,113 722,253
WRITE-OFF ASSETS LESS THAN $5,000- - 16,409 - 12,414 28,823 -
ASSET (INCREASES) DECREASES :
ACCOUNTS RECEIVABLE(31,001) (116,361) 195,400 83,264 43,263 174,565 -
INVENTORY(8,759) - (377) - 15,482 6,346 (15,472)
LIABILITY (INCREASES) DECREASES :
ACCOUNTS & VOUCHERS PAYABLE195,428 176,262 (62,623) (56,798) (60,729) 191,540 (193,583)
DEPOSITS PAYABLE(17,670) 2,657 (6,025) - 6,494 (14,544) -
WAGES & BENEFITS PAYABLE83,049 52,562 57,439 20,658 747 214,455 10,110
COMPENSATED ABSENCES PAYABLE37,198 (7,937) (30,224) (15,926) 1,197 (15,692) -
PRIOR YEAR ADJUSTMENTS- - (223,386) - - (223,386) -
TOTAL ADJUSTMENTS2,314,717 1,287,019 836,482 52,015 587,987 5,078,220 523,308
-- -
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES2,978,243$ 736,159$ 866,046$ (150,313)$ 283,015$ 4,713,150$ 997,943$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
CAPITAL ASSETS ACQUIRED BY CONTRIBUTED CAPITAL785,498$ 2,014,424$ 40,840$ -$ -$ 2,840,762$ 64,947$
INCREASE (DECREASE) IN FAIR VALUE OF INVESTMENT(21,563) (34,730) (35,359) (7,600) - (99,252) -
TOTAL NON CASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES763,935$ 1,979,694$ 5,481$ (7,600)$ -$ 2,741,510$ 64,947$
The notes to the financial statements are an integral part of this statement.
47
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
FIDUCIARY FUNDS
Fiduciary funds are used to account for assets held by the City of Auburn as a
trustee or agent for various individuals, private organizations, and other
governmental units. The Fire Relief and Pension Fund is accounted for on an
accrual basis. The agency fund is custodial in nature; therefore, no annual
budget is adopted.
TRUST FUNDS
The Fire Relief and Pension Fund
This fund accounts for the payment of administrative costs and benefits for
retired firefighters (and beneficiaries) who were employed prior to March 1, 1970.
Primary revenue sources are general property tax allocations, fire insurance
premium tax, and investment interest, in accordance with actuarial
recommendations.
AGENCY FUNDS
The Agency Fund
This fundaccounts for the funds over which the City is strictly a short-term custo-
dian.
48
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
DECEMBER 31, 2004
The notes to the financial statements are an integral part of this statement.
49
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2004
FIRE
RELIEF
PENSION
TRUST FUND
ADDITIONS:
OTHER CONTRIBUTIONS:
FIRE INSURANCE PREMIUMS52,855$
INVESTMENT EARNINGS68,982
TOTAL ADDITIONS121,837
DEDUCTIONS:
BENEFIT PAYMENTS282,808
INSURANCE EXPENSE42,831
TOTAL DEDUCTIONS325,639
CHANGE IN NET ASSETS(203,802)
NET ASSETS - BEGINNING3,363,764
NET ASSETS - ENDING3,159,962$
The notes to the financial statements are an integral part of this statement.
50
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City presents two government-wide financial statements:
TheStatement of Net Assets
provides information all on city assets and
liabilities, with the difference between the two reported as net assets.
The Statement of Activities
is focused on both the gross and net cost of
various functions, including both governmental and business-type activities,
.
which are supported by the City’s general tax and other revenues
33
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
34
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF NET ASSETS
DECEMBER 31, 2004
PRIMARY GOVERNMENT
GOVERNMENTALBUSINESS-TYPE
ACTIVITIESACTIVITIESTOTAL
ASSETS:
CASH AND CASH EQUIVALENTS (Note 3)40,221,773$ 17,745,202$ 57,966,975$
INVESTMENTS (Note 3)13,905,541 8,485,364 22,390,905
RECEIVABLES:
TAXES -331,918 331,918
CUSTOMER ACCOUNTS65,662 5,091,478 5,157,140
OTHER RECEIVABLES1,237,483 59,687 1,297,170
SPECIAL ASSESSMENTS1,189,111 - 1,189,111
DUE FROM OTHER GOVERNMENTAL UNITS (Note 6)3,052,317 53,577 3,105,894
INTERNAL BALANCES(176,863) 176,863 -
MATERIALS AND SUPPLIES INVENTORY77,218 114,007 191,225
LONG-TERM CONTRACTS AND NOTES- 1,877,716 1,877,716
DEFERRED CHARGES (Note 9)2,136,565 124,884 2,261,449
RESTRICTED ASSETS:
TEMPORARILY RESTRICTED:
CASH AND CASH EQUIVALENTS (Note 3)- 3,879,692 3,879,692
DEPRECIABLE CAPITAL ASSETS (NET OF ACCUMULATED
DEPRECIATION): (Note 7)152,383,026 108,568,705 260,951,731
NON-DEPRECIABLE CAPITAL ASSETS35,984,794 15,040,972 51,025,766
TOTAL ASSETS2 161,218,14750,408,545 411,626,692
LIABILITIES:
CURRENT LIABILITIES:
ACCOUNTS PAYABLE4, 1,793,746016,764 5,810,510
DUE TO OTHER GOVERNMENTAL UNITS17,760 - 17,760
OTHER LIABILITIES PAYABLE294,261 142,733 436,994
PAYABLE FROM RESTRICTED ASSETS:
ACCRUED INTEREST 484,816- 484,816
DEPOSITS 83,194- 83,194
NONCURRENT LIABILITIES:
DUE WITHIN ONE YEAR (Note 10)1,739,106 1,781,354 3,520,460
DUE IN MORE THAN ONE YEAR (Note 10)16,416,932 15,488,829 31,905,761
SPEC ASSESSMENT DEBT WITH GOV'T COMMITMENT (Note 10)228,354 - 228,354
UNEARNED REVENUE1,624,215 840,922 2,465,137
DEFERRED CREDITS43,928 - 43,928
TOTAL LIABILITIES24,381,320 20,615,594 44,996,914
NET ASSETS:
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT171,921,373 106,783,634 278,705,007
RESTRICTED NET ASSETS:
CAPITAL PROJECTS13,866,678 - 13,866,678
SPECIAL REVENUE FUNDS10,624,400 - 10,624,400
DEBT SERVICE 1,248,90012,311 1,261,211
NON EXPENDABLE PERPETUAL CARE1,111,727 - 1,111,727
OTHER PURPOSES 720,909- 720,909
UNRESTRICTED NET ASSETS28,490,736 31,849,110 60,339,846
TOTAL NET ASSETS226,027,225$ 140,602,553$ 366,629,778$
The notes to the financial statements are an integral part of this statement.
35
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2004
Page 1 of 2
PROGRAM REVENUES
OPERATINGCAPITAL
CHARGES GRANTS ANDGRANTS AND
EXPENSESFOR SERVICESCONTRIBUTIONSCONTRIBUTIONS
FUNCTIONS / PROGRAMS:
PRIMARY GOVERNMENT
GOVERNMENTAL ACTIVITIES:
GENERAL GOVERNMENT4,235,953$ 561,013$ 180,508$ -$
PUBLIC SAFETY26,076,348 1,767,687 1,495,473 -
TRANSPORTATION8,239,795 447,036 - 4,639,338
PHYSICAL ENVIRONMENT2,415,047 365,681 64,947 45,300
CULTURE AND RECREATION4,949,050 654,417 46,746 507,955
ECONOMIC ENVIRONMENT2,866,473 3,097,230 305,093 -
HEALTH AND HUMAN SERVICES597,423 - 86,184 -
INTEREST ON LONG-TERM DEBT362,051 - - -
6,893,06449,742,140 2,178,951 5,192,593
BUSINESS-TYPE ACTIVITIES:
WATER6,913,709 7,228,778 - 1,247,925
SANITARY SEWER11,207,786 10,800,906 - 2,832,987
STORM DRAINAGE3,169,350 3,073,559 - 270,366
SOLID WASTE8,645,372 8,443,044 33,384 -
NONMAJOR BUSINESS-TYPE ACTIVITIES2,597,476 2,200,779 - -
31,747,06632,533,693 33,384 4,351,278
TOTAL PRIMARY GOVERNMENT82,275,833$ 38,640,130$ 2,212,335$ 9,543,871$
GENERAL REVENUES:
TAXES:
PROPERTY
RETAIL SALES AND USE
INTERFUND UTILITY
UTILITY
EXCISE
OTHER
INVESTMENT EARNINGS
MISCELLANEOUS
GAIN ON SALE OF CAPITAL ASSETS
CONTRIBUTIONS TO ENDOWMENT FUNDS
TRANSFERS
TOTAL GENERAL REVENUES
CHANGE IN NET ASSETS
NET ASSETS - BEGINNING (Note 17)
NET ASSETS - ENDING
The notes to the financial statements are an integral part of this statement.
36
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
Page 2 of 2
NET (EXPENSE) REVENUE AND
CHANGES IN NET ASSETS
GOVERNMENTALBUSINESS-TYPE
ACTIVITIESACTIVITYTOTAL
$ -(3,494,432)$ (3,494,432)$
-(22,813,188) (22,813,188)
-(3,153,421) (3,153,421)
-(1,939,119) (1,939,119)
-(3,739,932) (3,739,932)
-535,850 535,850
-(511,239) (511,239)
-(362,051) (362,051)
-(35,477,532) (35,477,532)
1,562,994- 1,562,994
2,426,107- 2,426,107
174,575- 174,575
(168,944)- (168,944)
(396,697)- (396,697)
3,598,035- 3,598,035
$ 3,598,035(35,477,532)$ (31,879,497)$
$ -12,598,954$ 12,598,954$
-15,429,527 15,429,527
-1,714,102 1,714,102
-5,012,010 5,012,010
-3,384,515 3,384,515
-1,678,485 1,678,485
421,803708,259 1,130,062
1,273,608- 1,273,608
13,921147,169 161,090
-45,300 45,300
(627,000)627,000 -
1,082,33241,345,321 42,427,653
4,680,3675,867,789 10,548,156
135,922,186220,159,436 356,081,622
$ 140,602,553226,027,225$ 366,629,778$
37
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
MAJOR GOVERNMENTAL FUNDS
General Fund
The general fund accounts for all of the City's financial resources except those
required by statute or generally accepted accounting principles to be accounted
for in another fund. As is the case with most municipalities, the general fund is
the largest and most important accounting entity of the City. As noted in the
statements that follow, the general fund receives the bulk of its revenues from
local taxes, followed by State shared revenues, service charges, and other
income.
The general fund is accounted for on a modified accrual basis. Annual budgets
are adopted with appropriations lapsing at year-end.
Arterial Street Fund
This fund is supported by the State's one-half cent gas tax and is used for major
street construction.
Capital Improvement Projects Fund
This fund accounts for major capital acquisitions, and streets and parks
construction projects.
38
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2004
OTHERTOTAL
GENERAL ARTERIAL CAPITALGOVERNMENTALGOVERNMENTAL
FUNDSTREETIMPROVEMENTFUNDSFUNDS
ASSETS:
CASH AND CASH EQUIVALENTS16,759,607$ 2,202,853$ 9,803,578$ 5,188,133$ 33,954,171$
INVESTMENTS4,451,563 1,469,362 3,979,375 3,009,928 12,910,228
RECEIVABLES:
TAXES331,914 - - 4 331,918
CUSTOMER ACCOUNTS61,180 - 4,482 - 65,662
OTHER RECEIVABLES1,185,118 - 35,126 - 1,220,244
SPECIAL ASSESSMENTS- - - 1,189,111 1,189,111
INTERFUND RECEIVABLE84,000 - - - 84,000
LONG-TERM NOTES AND CONTRACTS- - 667,399 667,399
DUE FROM OTHER GOVERNMENTAL UNITS1,761,118 1,107,855 - 183,344 3,052,317
TOTAL ASSETS24,634,500$ 4,780,070$ 14,489,960$ 9,570,520$ 53,475,050$
LIABILITIES AND FUND BALANCES:
CURRENT PAYABLES3,415,663$ 265,086$ 11,564$ 178,522$ 3,870,835$
CUSTOMER DEPOSITS163,125 - - - 163,125
INTERFUND PAYABLE- - - 84,000 84,000
DUE TO OTHER GOVERNMENTAL UNITS- - - 17,760 17,760
OTHER LIABILITIES PAYABLE276 - - - 276
DEFERRED REVENUE353,186 428,393 702,525 1,195,822 2,679,926
TOTAL LIABILITIES3,932,250 693,479 714,089 1,476,104 6,815,922
FUND BALANCES:
RESERVED FOR:
PETTY CASH9,625 - - - 9,625
DEBT SERVICE- - - 159,042 159,042
ENDOWMENT- - - 1,111,727 1,111,727
UNRESERVED, REPORTED IN:
GENERAL FUND20,692,625 - - - 20,692,625
SPECIAL REVENUE FUNDS- 4,086,591 - 6,525,478 10,612,069
CAPITAL PROJECT FUNDS- - 13,775,871 76,149 13,852,020
PERMANENT FUND- - - 222,020 222,020
TOTAL FUND BALANCES20,702,250 4,086,591 13,775,871 8,094,416 46,659,128
TOTAL LIABILITIES AND FUND BALANCES24,634,500$ 4,780,070$ 14,489,960$ 9,570,520$ 53,475,050$
Total governmental fund balances as reported on this statement$ 46,659,128
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and therefore not reported in the funds184,779,552
Other long-term assets are not available to pay for current-period expenditures and therefore are deferred in the funds.
Prepaid expenses1,968,385
Net pension obligation122,820
Interest receivable on investments45,249
Unearned revenue beyond the city's 30-day measurable and available period353,186
Deferred charges for bond issue costs1,432
2,491,072
Internal service funds are used by management to charge the cost of certain activities, such as insurance and fleet
maintenance, to individual funds. The assets and liabilities of these internal service funds are included in governmental10,553,103
activities in the statement of net assets.
Some liabilities are not due and payable in the current period and therefore are not reported in the funds
Bonds and loans payable (15,765,141)
Interest payable(130,796)
Compensated absences payable(2,559,693)
(18,455,630)
Net assets of government activities as reported on the statement of net assets$ 226,027,225
39
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2004
OTHERTOTAL
GENERAL ARTERIAL CAPITALGOVERNMENTALGOVERNMENTAL
FUNDSTREETIMPROVEMENTFUNDSFUNDS
REVENUES:
TAXES:
PROPERTY12,680,361$ -$ -$ -$ 12,680,361$
RETAIL SALES & USE15,429,527 - - - 15,429,527
INTERFUND UTILITY1,714,102 - - - 1,714,102
UTILITY5,012,010 - - - 5,012,010
EXCISE 1,084,917 - 2,244,077 55,521 3,384,515
OTHER- - - 38,284 38,284
LICENSES AND PERMITS2,248,576 - - - 2,248,576
INTERGOVERNMENTAL2,205,983 1,415,606 - 1,075,912 4,697,501
CHARGES FOR SERVICES2,211,571 21,981 - 1,159,626 3,393,178
FINES AND FORFEITURES845,721 - - - 845,721
SPECIAL ASSESSMENTS- - - 127,976 127,976
INVESTMENT EARNINGS318,222 - - 18,220 336,442
MISCELLANEOUS535,184 1,470,736 191,672 254,876 2,452,468
TOTAL REVENUES44,286,174 2,908,323 2,435,749 2,730,415 52,360,661
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT5,472,630 - - - 5,472,630
SECURITY OF PERSONS AND PROPERTY25,725,943 - - 144,930 25,870,873
PHYSICAL ENVIRONMENT2,304,248 - - - 2,304,248
TRANSPORTATION2,150,847 3,001,497 - - 5,152,344
ECONOMIC ENVIRONMENT2,404,483 - - 392,419 2,796,902
HEALTH AND HUMAN SERVICES490,190 - - 107,233 597,423
CULTURE AND RECREATION4,684,936 - - 121,281 4,806,217
DEBT SERVICE:
PRINCIPAL49,162 - 689,643 279,550 1,018,355
INTEREST AND OTHER COSTS63,916 - 12,422 171,667 248,005
CAPITAL OUTLAY- - 12,090,566 10,400 12,100,966
TOTAL EXPENDITURES43,346,355 3,001,497 12,792,631 1,227,480 60,367,963
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES939,819 (93,174) (10,356,882) 1,502,935 (8,007,302)
OTHER FINANCING SOURCES (USES):
SALE OF FIXED ASSETS119,053 - - - 119,053
CAPITAL LEASES- - 10,350,000 - 10,350,000
TRANSFERS IN1,980,883 771,500 625,000 569,041 3,946,424
TRANSFERS OUT(834,000) (110,000) (708,058) (1,667,366) (3,319,424)
TOTAL OTHER FINANCING SOURCES AND USES1,265,936 661,500 10,266,942 (1,098,325) 11,096,053
NET CHANGE IN FUND BALANCES2,205,755 568,326 (89,940) 404,610 3,088,751
FUND BALANCES - BEGINNING18,496,495 3,518,265 13,865,811 7,689,806 43,570,377
FUND BALANCES - ENDING20,702,250$ 4,086,591$ 13,775,871$ 8,094,416$ 46,659,128$
The notes to the financial statements are an integral part of this statement.
40
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES OF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2004
Net change in fund balances per the Statement of Revenues, Expenditures and Changes in Fund Balance3,088,751$
Amount reported as change in net assets in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which depreciation ($7,033,582)
exceeded capital outlay ($5,785,758) in the current period.(1,247,824)
Government funds report prepaid expenses as expenditures. However, in the statement
of activities the cost of those expenses is allocated over their estimated useful lives.720,000
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Deferred revenue(73,169)
Amortization of bond premium3,137
Investment interest receivable(31,349)
(101,381)
Developer contributions of infrastructure assets are reported as revenue in the statement of
activities, but do not provide current financial resources and are not reported as fund revenue.2,088,219
Repayment of the principal of long-term debt consumes the current financial resources of
governmental funds but has no effect on the net assets.1,157,355
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and fleet maintenance, to individual funds. The net revenue (expense)
of certain internal service funds is reported with governmental activities.519,514
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.
Amortization of debt issue costs(3,240)
Amortization of prepaid expenses(109,355)
Change in accrued interest payable(95,234)
Change in net pension obligation(47,640)
Change in compensated absences payable(101,376)
(356,845)
Change in net assets on the Statement of Activities$ 5,867,789
41
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
42
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
MAJOR PROPRIETARY FUNDS
ENTERPRISE FUNDS
The City's enterprise funds are used to account for operations that are financed
and operated in a manner similar to private business operations. The goods and
services these funds provide to the general public are primarily financed by
service charges. Enterprise funds are self-supporting and use the accrual
method of accounting. Auburn has four major enterprise funds.
The Water Fund
This fund accounts for all maintenance, construction, and debt service
requirements associated with the water system.
The Sanitary Sewer Fund
This fund accounts for maintenance, construction, and debt requirements for
Auburn's sanitary sewer system.
The Storm Drainage Fund
This fund accounts for the maintenance, construction and debt service
requirements of Auburn's storm drainage system.
The Solid Waste Fund
Garbage collection services for the City are accounted for in this fund, supported
almost entirely by garbage collection fees. Expenses include payment to the
City's garbage contractor and other service charges.
43
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
DECEMBER 31, 2004
GOVERNMENTAL
NON-MAJORTOTALACTIVITIES
SANITARYSTORMSOLIDPROPRIETARYPROPRIETARYINTERNAL
WATERSEWERDRAINAGEWASTEFUNDSFUNDSSERVICE FUNDS
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS4,529,193$ 8,000,527$ 2,909,516$ 1,342,533$ 963,433$ 17,745,202$ 6,267,602$
INVESTMENTS3,478,437 2,469,855 1,543,922 993,150 - 8,485,364 995,313
CUSTOMER ACCOUNTS901,232 1,748,956 764,626 1,659,865 16,799 5,091,478 -
OTHER RECEIVABLES32,274 6,917 16,957 3,539 - 59,687 7,116
DUE FROM OTHER GOVERNMENTAL UNITS- - - 17,638 35,939 53,577
-
INVENTORIES99,606 2,124 5,264 - 7,013 114,007 77,218
TOTAL CURRENT ASSETS9,040,742 12,228,379 5,240,285 4,016,725 1,023,184 31,549,315 7,347,249
NONCURRENT RESTRICTED ASSETS:
RESTRICTED CASH, CASH EQUIVALENTS
AND INVESTMENTS1,991,160 603,757 1,144,431 - 140,344 3,879,692 -
TOTAL RESTRICTED ASSETS1,991,160 603,757 1,144,431 - 140,344 3,879,692 -
CAPITAL ASSETS:
LAND897,971 1,654,958 5,011,418 - 5,919,620 13,483,967 -
BUILDINGS AND EQUIPMENT2,697,394 1,014,344 114,615 461,674 6,044,303 10,332,330 7,808,582
32,640,891 - 8,729,103 147,906,121 46,591
IMPROVEMENTS OTHER THAN BUILDINGS67,356,126 39,180,001
CONSTRUCTION IN PROGRESS477,173 652,720 295,938 - 131,174 1,557,005 -
LESS: ACCUMULATED DEPRECIATION(24,034,632) (11,208,703) (8,837,014) (143,950) (5,445,447) (49,669,746) (4,266,905)
TOTAL CAPITAL ASSETS (NET OF A/D)47,394,032 31,293,320 29,225,848 317,724 15,378,753 123,609,677 3,588,268
OTHER NONCURRENT ASSETS:
LONG-TERM CONTRACTS AND NOTES- 1,838,400 - - 39,316 1,877,716
-
DEFERRED CHARGES66,713 - 28,067 - 30,104 124,884 -
TOTAL OTHER NONCURRENT ASSETS66,713 1,838,400 28,067 - 69,420 2,002,600
TOTAL ASSETS58,492,647 45,963,856 35,638,631 4,334,449 16,611,701 161,041,284 10,935,517
LIABILITIES:
CURRENT LIABILITIES:
CURRENT PAYABLES442,986 324,906 129,120 727,425 169,309 1,793,746 145,929
CUSTOMER DEPOSITS30,987 - - - 3,267 34,254 -
OTHER LIABILITIES PAYABLE29,763 - - - - 29,763
64
LOANS PAYABLE-DUE WITHIN ONE YEAR434,194 - - - - 434,194
-
COMPENSATED ABSENCES119,016 45,542 46,364 6,462 24,776 242,160 32,473
PAYABLE FROM RESTRICTED ASSETS:
REVENUE BONDS737,400 - 327,600 - - 1,065,000 -
GENERAL OBLIGATION BONDS- - - - 40,000 40,000
-
ACCRUED INTEREST342,769 - 142,047 - - 484,816 -
DEPOSITS17,720 11,549 - - 53,925 83,194 -
TOTAL CURRENT LIABILITIES2,154,835 381,997 645,131 733,887 291,277 4,207,127 178,466
NONCURRENT LIABILITIES PAYABLE FROM
RESTRICTED ASSETS:
LONG-TERM BONDS PAYABLE:
REVENUE BONDS5,065,200 - 2,089,800 - - 7,155,000 -
GENERAL OBLIGATION BONDS- - - - 1,500,000 1,500,000
-
TOTAL LIABILITIES PAYABLE
FROM RESTRICTED ASSETS5,065,200 - 2,089,800 - 1,500,000 8,655,000 -
OTHER NONCURRENT LIABILITIES:
DEFERRED REVENUE42,200 162,203 597,204 - 39,315 840,922 -
EMPLOYEE LEAVE BENEFITS99,268 37,986 38,671 5,390 20,666 201,981 27,085
DEFERRED CREDITS56,792 - 21,924 - - 78,716 -
LOANS PAYABLE6,631,848 - - - - 6,631,848 -
TOTAL OTHER NONCURRENT LIABILITIES6,830,108 200,189 657,799 5,390 59,981 7,753,467 27,085
TOTAL LIABILITIES14,050,143 582,186 3,392,730 739,277 1,851,258 20,615,594 205,551
NET ASSETS:
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT34,525,390 31,293,320 26,808,448 317,723 13,838,753 106,783,634 3,588,268
RESTRICTED FOR:
DEBT SERVICE874,116 - 374,784 - - 1,248,900 -
CONSTRUCTION57 637,900 - - 82,952 720,909 -
UNRESTRICTED9,042,941 13,450,450 5,062,669 3,277,449 838,738 31,672,247 7,141,698
TOTAL NET ASSETS44,442,504$ 45,381,670$ 32,245,901$ 3,595,172$ 14,760,443$ 140,425,690$ 10,729,966$
Adjustment to reflect the consolidation
of internal service funds related to
enterprise funds176,863
Net assets of business-type activities140,602,553$
The notes to the financial statements are an integral part of this statement.
44
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2004
GOVERNMENTAL
ACTIVITIES
SANITARYSTORMSOLIDNONMAJORINTERNAL
WATERSEWERDRAINAGEWASTEFUNDSTOTALSERVICE FUNDS
OPERATING REVENUES:
CHARGES FOR SERVICES7,228,778$ 10,800,747$ 3,073,400$ 8,443,044$ 2,130,415$ 31,676,384$ 2,681,204$
INTEREST- - - - 3,276 3,276 -
OTHER OPERATING REVENUE- 159 159 - 67,088 67,406 -
TOTAL OPERATING REVENUES7,228,778 10,800,906 3,073,559 8,443,044 2,200,779 31,747,066 2,681,204
OPERATING EXPENSES:
OPERATIONS & MAINTENANCE2,421,771 8,312,541 835,530 7,472,589 1,231,208 20,273,639 908,907
ADMINISTRATION1,333,524 1,031,572 1,052,752 431,098 644,367 4,493,313 575,409
DEPRECIATION/AMORTIZATION2,056,472 1,179,836 889,869 20,817 569,119 4,716,113 722,253
OTHER OPERATING EXPENSES753,485 827,818 265,844 720,868 61,059 2,629,074 -
TOTAL OPERATING EXPENSES6,565,252 11,351,767 3,043,995 8,645,372 2,505,753 32,112,139 2,206,569
OPERATING INCOME (LOSS)663,526 (550,861) 29,564 (202,328) (304,974) (365,073) 474,635
NON-OPERATING REVENUE (EXPENSE):
INTEREST REVENUE158,678 127,413 75,674 44,109 15,929 421,803 82,409
OTHER NON-OPERATING REVENUES22,048 465,724 5,580 34,809 778,831 1,306,992 13,388
GAIN (LOSS) ON SALE OF CAPITAL ASSETS- - - - 13,921 13,921
28,116
INTEREST EXPENSE(348,457) - (123,243) - (91,723) (563,423) -
OTHER NON-OPERATING EXPENSES- - (2,112) - - (2,112) -
TOTAL NON-OPERATING REVENUE ( EXPENSE)(167,731) 593,137 (44,101) 78,918 716,958 1,177,181 123,913
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS495,795 42,276 (14,537) (123,410) 411,984 812,108 598,548
CAPITAL CONTRIBUTIONS1,247,925 2,832,987 270,366 - - 4,351,278 64,947
TRANSFERS IN- - - - 30,000 30,000 -
TRANSFERS OUT(126,000) (365,000) (166,000) - - (657,000) -
CHANGE IN NET ASSETS
2,510,2631,617,720 89,829 (123,410) 441,984 4,536,386 663,495
TOTAL NET ASSETS BEGINNING OF YEAR42,824,784 42,871,407 32,379,458 3,718,582 14,318,459 136,112,690 10,066,471
PRIOR PERIOD ADJUSTMENT- - (223,386) - - (223,386)
TOTAL NET ASSETS END OF YEAR44,442,504$ 45,381,670$ 32,245,901$ 3,595,172$ 14,760,443$ 140,425,690$ 10,729,966$
Change in Net Assets from this statement4,536,386
Adjustment to reflect the consolidation of internal service fund
activities related to enterprise funds143,981
Change in net assets of business-type activities4,680,367$
The notes to the financial statements are an integral part of this statement.
45
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004
Page 1 of 2
GOVERNMENT
NON-MAJORACTIVITIES
SANITARYSTORMSOLIDENTERPRISEINTERNAL
WATERSEWERDRAINAGEWASTEFUNDTOTALSERVICE FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM USERS7,180,107$ 10,687,202$ 3,039,548$ 8,526,308$ 2,250,537$ 31,683,702$ 2,681,204$
CASH PAID TO SUPPLIERS(1,770,028) (8,040,747) (717,134) (7,523,340) (1,056,390) (19,107,639) (833,401)
CASH PAID FOR TAXES(753,438) (827,817) (265,844) (720,868) (60,627) (2,628,594) (49,496)
CASH PAID FOR INVENTORY(60,721) - (377) - 888 (60,210) (333,334)
CASH PAID TO EMPLOYEES(1,617,677) (1,082,479) (1,190,147) (432,413) (851,395) (5,174,111) (467,030)
OTHER CASH RECEIVED (PAID)- - - - 2 2 -
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES2,978,243 736,159 866,046 (150,313) 283,015 4,713,150 997,943
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
OPERATING TRANSFERS IN- - - - 30,000 30,000 -
OPERATING GRANT RECEIVED- - - 15,746 - 15,746 -
OPERATING TRANSFERS OUT(126,000) (365,000) (166,000) - - (657,000) -
NET CASH PROVIDED (USED) BY NON- -
CAPITAL FINANCING ACTIVITIES(126,000) (365,000) (166,000) 15,746 30,000 (611,254) -
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PROCEEDS FROM SALE OF EQUIPMENT20,000 - - - 13,921 33,921 85,693
PURCHASE OF CAPITAL ASSETS(604,504) (450,743) (484,525) (28,119) (1,218,913) (2,786,804) (898,920)
CONTRIBUTED CAPITAL484,475 1,284,286 235,106 - - 2,003,867 64,947
CAPITAL GRANTS- - - - 815,666 815,666 -
PROCEEDS FROM OTHER GOVERNMENTS- 135,000 - 34,809 - 169,809 -
PROCEEDS FROM INSURANCE SETTLEMENT- - - - - - 13,388
PRINCIPAL PAYMENT ON DEBT(1,061,753) - (310,900) - (35,000) (1,407,653) -
INTEREST PAYMENT ON DEBT(394,500) - (142,137) - (89,694) (626,331) (102)
OTHER CASH RECEIVED (PAID)42,200 162,203 597,204 - - 801,607 -
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES(1,514,082) 1,130,746 (105,252) 6,690 (514,020) (995,918) (734,994)
CASH FLOW FROM INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF INVESTMENTS2,801,406 2,000,000 - 800,000 - 5,601,406 -
PURCHASE OF INVESTMENTS(3,500,000) (1,500,000) (1,000,000) (1,000,000) - (7,000,000) (970,017)
15,930 461,369 49,997
INTEREST RECEIVED147,967 155,226 94,076 48,170
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES(550,627) 655,226 (905,924) (151,830) 15,930 (937,225) (920,020)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS787,534 2,157,131 (311,130) (279,707) (185,075) 2,168,753 (657,071)
CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR5,732,819 6,447,153 4,365,077 1,619,311 1,288,852 19,453,212 6,924,673
CASH AND CASH EQUIVALENTS-END OF YEAR6,520,353$ 8,604,284$ 4,053,947$ 1,339,604$ 1,103,777$ 21,621,965$ 6,267,602$
CASH AT END OF YEAR CONSISTS OF:
OPERATING CASH4,529,193$ 8,000,527$ 2,909,516$ 1,339,604$ 963,433$ 17,742,273$ 6,267,602$
RESTRICTED CASH1,991,160 603,757 1,144,431 - 140,344 3,879,692 -
TOTAL CASH6,520,353$ 8,604,284$ 4,053,947$ 1,339,604$ 1,103,777$ 21,621,965$ 6,267,602$
The notes to the financial statements are an integral part of this statement.
46
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004
Page 2 of 2
GOVERNMENT
NON-MAJORACTIVITIES
SANITARYSTORMSOLIDENTERPRISEINTERNAL
WATERSEWERDRAINAGEWASTEFUNDTOTALSERVICE FUNDS
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
OPERATING INCOME (LOSS)663,526$ (550,860)$ 29,564$ (202,328)$ (304,972)$ (365,070)$ 474,635$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION2,056,472 1,179,836 889,869 20,817 569,119 4,716,113 722,253
WRITE-OFF ASSETS LESS THAN $5,000- - 16,409 - 12,414 28,823 -
ASSET (INCREASES) DECREASES :
ACCOUNTS RECEIVABLE(31,001) (116,361) 195,400 83,264 43,263 174,565 -
INVENTORY(8,759) - (377) - 15,482 6,346 (15,472)
LIABILITY (INCREASES) DECREASES :
ACCOUNTS & VOUCHERS PAYABLE195,428 176,262 (62,623) (56,798) (60,729) 191,540 (193,583)
DEPOSITS PAYABLE(17,670) 2,657 (6,025) - 6,494 (14,544) -
WAGES & BENEFITS PAYABLE83,049 52,562 57,439 20,658 747 214,455 10,110
COMPENSATED ABSENCES PAYABLE37,198 (7,937) (30,224) (15,926) 1,197 (15,692) -
PRIOR YEAR ADJUSTMENTS- - (223,386) - - (223,386) -
TOTAL ADJUSTMENTS2,314,717 1,287,019 836,482 52,015 587,987 5,078,220 523,308
-- -
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES2,978,243$ 736,159$ 866,046$ (150,313)$ 283,015$ 4,713,150$ 997,943$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
CAPITAL ASSETS ACQUIRED BY CONTRIBUTED CAPITAL785,498$ 2,014,424$ 40,840$ -$ -$ 2,840,762$ 64,947$
INCREASE (DECREASE) IN FAIR VALUE OF INVESTMENT(21,563) (34,730) (35,359) (7,600) - (99,252) -
TOTAL NON CASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES763,935$ 1,979,694$ 5,481$ (7,600)$ -$ 2,741,510$ 64,947$
The notes to the financial statements are an integral part of this statement.
47
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
FIDUCIARY FUNDS
Fiduciary funds are used to account for assets held by the City of Auburn as a
trustee or agent for various individuals, private organizations, and other
governmental units. The Fire Relief and Pension Fund is accounted for on an
accrual basis. The agency fund is custodial in nature; therefore, no annual
budget is adopted.
TRUST FUNDS
The Fire Relief and Pension Fund
This fund accounts for the payment of administrative costs and benefits for
retired firefighters (and beneficiaries) who were employed prior to March 1, 1970.
Primary revenue sources are general property tax allocations, fire insurance
premium tax, and investment interest, in accordance with actuarial
recommendations.
AGENCY FUNDS
The Agency Fund
This fundaccounts for the funds over which the City is strictly a short-term custo-
dian.
48
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
DECEMBER 31, 2004
The notes to the financial statements are an integral part of this statement.
49
CITY OF AUBURN: 2004 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2004
FIRE
RELIEF
PENSION
TRUST FUND
ADDITIONS:
OTHER CONTRIBUTIONS:
FIRE INSURANCE PREMIUMS52,855$
INVESTMENT EARNINGS68,982
TOTAL ADDITIONS121,837
DEDUCTIONS:
BENEFIT PAYMENTS282,808
INSURANCE EXPENSE42,831
TOTAL DEDUCTIONS325,639
CHANGE IN NET ASSETS(203,802)
NET ASSETS - BEGINNING3,363,764
NET ASSETS - ENDING3,159,962$
The notes to the financial statements are an integral part of this statement.
50
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
City of Auburn
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2004
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES............................................... 52
A. REPORTING ENTITY.........................................................................................................52
B. BASIC FINANCIAL STATEMENTS...................................................................................52
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND
BASIS OF PRESENTATION..............................................................................................53
D. BUDGET AND BUDGETARY ACCOUNTING....................................................................55
E. ASSETS, LIABILITIES, AND FUND EQUITY.....................................................................57
1. DEPOSITS AND INVESTMENTS...............................................................................57
2. RECEIVABLES............................................................................................................57
3. INTERFUND RECEIVABLES AND PAYABLES.........................................................57
4. AMOUNTS DUE FROM OTHER GOVERNMENTAL UNITS......................................58
5. INVENTORIES............................................................................................................58
6. RESTRICTED ASSETS...............................................................................................58
7. INTERFUND TRANSACTIONS...................................................................................58
8. CAPITAL ASSETS.......................................................................................................58
9. DEFERRED CREDITS/CHARGES.............................................................................59
10. COMPENSATED ABSENCES....................................................................................59
11. DEFERRED REVENUES............................................................................................59
12. RESERVATIONS AND DESIGNATIONS OF FUND EQUITY....................................59
F. REVENUES, EXPENDITURES AND EXPENSES.............................................................60
G. ESTIMATES........................................................................................................................60
H. CHANGES IN ACCOUNTING STANDARDS.....................................................................61
NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY..............................................61
NOTE 3 – DEPOSITS AND INVESTMENTS......................................................................................61
NOTE 4 – PROPERTY TAXES...........................................................................................................64
NOTE 5 – INTERFUND ACTIVITY.....................................................................................................65
NOTE 6 – DUE FROM OTHER GOVERNMENTAL UNITS...............................................................66
NOTE 7 – CAPITAL ASSETS AND DEPRECIATION........................................................................67
NOTE 8 – RECORDED VACATION, SICK LEAVE, AND POST-EMPLOYMENT BENEFITS..........68
NOTE 9 – PENSION PLANS..............................................................................................................68
NOTE 10 – LONG-TERM DEBT.........................................................................................................74
NOTE 11 – CONSTRUCTION COMMITMENTS................................................................................77
NOTE 12 – CEMETERY ENDOWED CARE FUND...........................................................................77
NOTE 13 – JOINT VENTURE / RELATED PARTY............................................................................78
NOTE 14 – CONTINGENCIES AND LITIGATION.............................................................................80
NOTE 15 – RISK MANAGEMENT & INSURANCE............................................................................80
NOTE 16 – SUBSEQUENT EVENTS.................................................................................................81
NOTE 17 – RESTATEMENTS AND PRIOR PERIOD ADJUSTMENTS............................................82
51
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Auburn, King County, Washington, was incorporated in 1891. It operates under the laws
of the State of Washington applicable to a Non-Charter Code City under a Mayor/Council form of
government. A full-time mayor and seven part-time council members administer Auburn, all elected
at-large to four-year terms. The City provides a range of municipal services authorized by state law,
including water services, sanitary sewer collection, solid waste collection, storm drainage, a general
aviation airport, a municipal cemetery and a municipal golf course.
The accounting and reporting policies of the City of Auburn, which conform to Generally Accepted
Accounting Principles (GAAP) for governments, are regulated by the Washington State Auditor’s
Office. The City’s significant accounting policies are described in the following notes.
A. REPORTING ENTITY
The City’s Comprehensive Annual Financial Report (CAFR) includes all funds controlled by
the City.
Based on the criteria of Governmental Accounting Standards Board (GASB) Statement No.
14 as modified by GASB Statement No. 34, the Valley Communications Center is included
in the accompanying government-wide statement of net assets as a joint venture. (Please
refer to Notes 7 and 13).
The government-wide financial statements consist of the government-wide statement of net
assets and the government-wide statement of activities.
B. BASIC FINANCIAL STATEMENTS
The City’s basic financial statements consist of government-wide financial statements and
fund financial statements. The government-wide financial statements, which include the
statement of net assets and the statement of activities, summarize the entire operation of
the City. The fund financial statements, which include balance sheets, statements of
revenues, expenditures and changes in fund balances, budget and actual statements, and
statements of cash flows, provide a more detailed level of reporting.
The government-wide financial statements report information on all of the nonfiduciary
activities of the City. For the most part, the effect of interfund activity has been eliminated
from these statements. Because governmental activities are normally supported by taxes
and intergovernmental revenue, while business-type activities are generally supported
through user fees and charges, governmental activities are reported separately from
business-type activities on all government-wide financial statements.
The statement of activities demonstrates the degree to which the direct expenses of various
functions and activities of the City are offset by program revenues. Direct expenses are
those that are clearly identifiable with a specific function or activity. Program revenues
include 1) charges to customers or applicants who purchase, use, or directly benefit from
goods, services or privileges provided by a function or activity, and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or activity. Taxes and other items that are not properly included among
function or activity revenues are instead reported as general revenues. The City does not
allocate indirect expenses to functions in the statement of activities.
Separate financial statements are included for government funds, proprietary funds, and
fiduciary funds, even though fiduciary funds are excluded from the government-wide
52
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
financial statements. Major individual governmental funds and major individual enterprise
funds are reported in separate columns in the fund financial statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND BASIS OF PRESENTATION
The accounts of the City are organized on the basis of funds, each of which is considered a
separate accounting entity. Each fund is accounted for with a separate set of self-balancing
accounts that comprise its assets, liabilities, fund equity, revenue, and expenditures or
expenses, as appropriate. The City resources are allocated to, and accounted for, in
individual funds according to the purpose for which they are spent and how they are
controlled.
Thebasis of accounting refers to the timing of when revenues and expenditures or
expenses are recognized in the accounts and reported in the financial statements.
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary and pension
trust fund financial statements. Governmental fund financial statements are reported using
the current financial resources measurement focus and the modified accrual basis of
accounting.
Themodified accrual basis of accounting is followed in all governmental and permanent
funds of the City. Under the modified accrual basis of accounting, revenues are recognized
when measurable and available. Revenues are generally considered available if they are
collected within the current period or soon enough thereafter (30 days) to pay current
liabilities. For derived tax revenues, such as sales tax and utility business and occupation
taxes, revenues are recognized in the period when the underlying exchange has occurred.
For imposed non-exchange taxes, such as property taxes, revenues are recognized when
the use of resources is permitted, or when resources are available. Grant revenue is
recognized in the period in which the expenditure occurs and the eligibility requirements
have been met. Non-exchange transactions, such as contributions, are recognized when
the donation eligibility requirements have been satisfied. Those specific major revenue
sources accrued are:
Property Taxes – King County and Pierce County collect property taxes and remit to the City
daily or monthly. December collections by each County, remitted in January, are
recognized as revenues in current year even though received in the subsequent year since
they are considered to be measurable and available. Property taxes remaining uncollected
at year-end are reported as “deferred revenue”, since they are not considered to be
available.
Sales Tax Revenues – The State of Washington collects all sales taxes. Auburn’s portion is
remitted to the City by the State monthly. The sales tax received in January is recognized
as revenue in current year even though received in the subsequent year because of when
the underlying transaction occurred and the resources are considered to be measurable and
available.
Grant Revenues – On cost reimbursement, grant revenue is recognized when the
expenditure is incurred.
Under the modified accrual basis, expenditures are recorded when the fund liability is
incurred, except for the un-matured interest and principal on general long-term debt, which
is recognized when due, and for compensated absences which are recorded as
expenditures when liquidated from expendable available fund resources. Purchases of
capital assets from governmental funds are reported as expenditures during the year
incurred and the asset is capitalized and reported on the government-wide statement of net
53
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
assets. Long-term liabilities, including compensated absence pay not currently due and
payable, are also reported on the government-wide statement of net assets.
Theaccrual basis of accounting is followed in all proprietary, agency, and pension trust
funds. Under the accrual basis of accounting, revenues are recognized when earned and
expenses are recorded when incurred.
The three broad fund categories and nine generic fund types presented in this report are
described below:
1. GOVERNMENTAL FUND TYPES
All governmental funds are accounted for on a spending or “financial flow” measurement
focus. This means that only current assets and current liabilities generally are included
on their balance sheets. Their reported fund balance (net current assets) is considered
a measure of “available spendable resources”. Governmental fund operating
statements focus on measuring cash flows rather than net income; they present
increases (revenues and other financing sources) and decreases (expenditures and
other financing uses) in net current assets.
a. General fund – This fund is used to account for all financial resources and
transactions of the City not accounted for in another fund, as required. The
general fund is always considered a major fund.
b. Special Revenue funds – These funds are used to account for the proceeds of
specific revenue sources (other than major capital projects) that are legally
restricted to expenditures for specified purposes. One special revenue fund is
considered major: the arterial street fund. This fund is supported by the State of
Washington’s one-half cent gas tax and is used for major street construction.
c. Debt Service funds – These funds account for the accumulation of resources for,
and the payment of, general long-term and special assessment debt principal,
interest, and related costs. These funds also include the LID guarantee fund
which provides financial security for outstanding LID bonds.
d. Capital Projects funds – These funds are used to account for financial resources
to be used for the acquisition or construction of major capital facilities other than
those financed by proprietary funds. One capital project fund is considered
major: the capital improvement projects fund. This fund accounts for major
capital acquisitions, and street and parks construction projects.
e. Permanent funds – These funds are used to account for resources that are
legally restricted to the extent that only earnings, and not principal, may be used
for purposes of supporting a specific City program.
2. PROPRIETARY FUND TYPES
Proprietary funds are accounted for on the “flow of economic resources” measurement
focus. This means that all assets and all liabilities (whether current or non-current)
associated with their activity are included on their balance sheets. Their reported fund
equity is segregated into contributed capital and net asset components. Proprietary fund
operating statements present increases (revenues and gains) and decreases (expenses
and losses) in net total fund equities. The proprietary fund measurement focus is upon
determination of financial position, net income, and cash flow.
54
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
Proprietary funds distinguish operating revenues and expenses from nonoperating
items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprietary fund’s principal ongoing
operations. The principal operating revenue of the City’s utility funds, other enterprise
funds, and internal service funds are charges to customers for sales and services,
vehicle replacement, and insurance. Operating expenses for enterprise funds and
internal service funds include the cost of sales and services, administrative expenses,
taxes, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses, or as capital
contributions.
Pursuant to Statement No. 20 of the Governmental Accounting Standards Board
(GASB),Accounting and Financial Reporting for Proprietary Funds and Other
Governmental Entities That Use Proprietary Fund Accounting, the City has chosen to
apply all applicable GASB pronouncements as well as the following pronouncements
issued on or before November 30, 1989, unless those pronouncements conflict with or
contradict GASB pronouncements: FASB Statements and Interpretations, APB Opinion,
and ARBs.
a.Enterprise funds – These funds are used to account for services to the general
public where all or most of the costs, including depreciation, are to be financed
or recovered from users of such services.
b.Internal Service funds – These funds are used to account for the financing of
goods and services provided to other funds, departments, or governments on a
cost reimbursement basis.
3. FIDUCIARY FUND TYPES
Fiduciary funds are used to account for assets held by the City in a trustee capacity or
as an agent for individuals, private organizations, other governments, and/or other
funds. These include a pension trust and an agency fund. Each fiduciary fund is
classified for accounting measurement purposes either as a governmental fund or a
proprietary fund.
Pension trust funds are accounted for on the accrual basis in essentially the same
manner as proprietary funds since capital management is critical. The City’s Fire Relief
and Pension fund is included in this group, although based on actuarial
recommendations, there are no employee or employer contributions to the Fire Relief
and Pension Plan. Pension benefits are recognized when due; plan administration costs
are also recognized when incurred in this fund.
Agency funds are custodial in nature (assets equal liabilities) and do not involve
measurement of results of operations.
D. BUDGET AND BUDGETARY ACCOUNTING
The City of Auburn budgets in accordance with the Revised Code of Washington (RCW)
35A.33 for the general and special revenue funds. For governmental funds, there are no
substantial differences between the budgetary basis and generally accepted accounting
principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the
financial statements include budgetary comparisons for annually budgeted governmental
funds only. Budgets established for proprietary and trust funds are “management budgets”,
and are not legally required to be reported and, as such, are not reported in the CAFR.
55
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
The annual budget is proposed by the Mayor and adopted by the City Council with legal
budgetary control at the fund level; i.e., expenditures and other financing sources may not
exceed budgeted appropriations at the fund level. The Mayor may authorize transfers
within funds; however, the City Council must approve by ordinance any amendments that
increase the total for the fund. Any unexpended appropriation balances lapse at the end of
the fiscal year.
The City prepares annual budgets on the modified accrual basis, which conforms to
Generally Accepted Accounting Principles (GAAP). The CAFR includes budgetary
comparisons for those governmental funds with legally adopted budgets. Budget amounts
include the adopted annual current year budget appropriations and any revisions made
during the year.
State law establishes the budget process and the time limits under which a budget must be
developed. The City follows the procedures outlined below to establish its annual budget:
1. Sixty days prior to the ensuing fiscal year, the Mayor submits to the City Council a
preliminary budget for the fiscal year commencing the following January 1. The
operating budget includes proposed expenditures and funding sources.
2. Public hearings are conducted at the Auburn City Council Meetings to obtain
taxpayer comments.
3. Prior to December 31, the budget is legally enacted through passage of an
ordinance.
4. The final operating budget as adopted is published and distributed after adoption.
Copies of the budget are made available to the public.
Amounts shown in the accompanying financial statements represent the original budgeted
amounts and all supplemental appropriations.
SUPPLEMENTAL APPROPRIATIONS
OriginalFinal
BudgetRevisionsBudget
Governmental funds
General fund46,536,100$ 3,267,000$ 49,803,100$
Total governmental funds46,536,100 3,267,000 49,803,100
Special revenue funds:
City street750,000 - 750,000
Arterial street6,132,000 5,120,500 11,252,500
Hotel/motel tax60,000 37,900 97,900
Drug forfeiture fund65,100 50,000 115,100
Local Law Enforcement Block Grant50,000 - 50,000
Housing and Community Development 12,000483,000 495,000
Recreation trails- - -
Business Improvement Area91,700 - 91,700
Cumulative reserve- - -
1986 parks & street improvement5,629 399 6,028
Mitigation fees250,000 725,000 975,000
Parks & recreation special projects26,500 - 26,500
Total special revenue funds7,913,929 5,945,799 13,859,728
Total budgeted funds54,450,029$ 9,212,799$ 63,662,828$
56
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
E. ASSETS, LIABILITIES, AND FUND EQUITY
1. DEPOSITS AND INVESTMENTS
It is the City’s policy to invest all temporary cash surplus. At December 31, 2004, the
Local Government Investment Pool (LGIP) was holding $62,042,332 in short-term
investments. This amount is classified on the balance sheet as cash and cash
equivalents. The interest on these investments is prorated to the various funds based
upon ownership of investments. For purposes of the Statement of Cash Flows, cash
and cash equivalents includes cash on deposit with financial institutions in both demand
and time deposit accounts, and amounts invested in the Local Government Investment
Pool, administered by the State Treasurer’s Office.
The City, by state law, is authorized to purchase certificates of deposit issued by
Washington State depositories that participate in the state investment pool, U.S.
Treasury and Agency securities, banker’s Acceptances, and repurchase agreements.
The City purchases repurchase agreements only from institutions that use authorized
securities for collateral. The City of Auburn also has signed a “master repurchase
agreement” with its primary bank (Key Bank).
For purposes of the statement of cash flows, all proprietary fund types and similar trust
funds consider all highly liquid investments (including restricted assets) with maturity of
three months or less when purchased to be cash equivalents.
Investments are recorded at fair value. Adjustments are made to cost for investments
amortized over the period to maturity in accordance with GASB Statement No. 31.
GASB Statement No. 40, Deposit and Investment Risk Disclosures, has been early-
implemented with this report.
2. RECEIVABLES
Taxes receivable consist of property taxes (see Note 4). Accrued interest receivable
consists of amounts earned on notes and contracts at the end of the year.
Customer accounts receivable consist of amounts owed by private individuals or
organizations for goods and services provided. Uncollectible amounts are considered
immaterial and the direct write-off method is used.
Special assessments are levied against certain property owners and become liens
against the property benefited by the improvement. Special assessments receivable
consist of current assessments, which are due within one year, delinquent assessments
remaining unpaid after the due date, and deferred, uncollected assessments, which
have been levied, but are not due within one year.
Other receivables include utility taxes due from private organizations and customer
accounts receivable, which consist of amounts owed from private individuals or
organizations for goods and services, including amounts owed for which billings have
not been prepared. Notes and contracts receivable consist of amounts owed on open
accounts from private individuals or organizations for goods and services rendered.
3. INTERFUND RECEIVABLES AND PAYABLES
These accounts include all interfund receivables and payables. A separate schedule of
interfund activity is furnished in Note 5.
57
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
4. AMOUNTS DUE FROM OTHER GOVERNMENTAL UNITS
This account includes amounts due from other governments for grants, entitlements and
charges for services.
5. INVENTORIES
Inventories in the enterprise and internal service funds are valued at cost using the
weighted average costing method. Governmental fund types recognize the cost of
inventory items as expenditures when purchased. In governmental funds, materials and
supplies remaining at year-end are immaterial and not included in inventory on the
balance sheet.
6. RESTRICTED ASSETS
There are two types of restricted assets: customer deposits and proceeds of revenue
bonds issued by City utilities that are restricted by applicable bond ordinances to pay
bond and construction costs.
7. INTERFUND TRANSACTIONS
During the course of normal operations, the City has numerous transactions between
City funds. Interfund services provided and used, such as buying goods and services,
are recorded as revenues and expenditures. Internal service fund billings are recorded
as revenues in the equipment rental fund and as expenditures in the paying fund.
Transfers between funds are included as “other financing sources or uses”.
8. CAPITAL ASSETS
Capital assets are recorded at historical cost when known, or at estimated historical
cost when actual costs are not known. Infrastructure, such as roads, bridges and water
mains, is reported in the applicable government or business-type activities columns in
the government-wide statement of net assets. All infrastructure costs have been
calculated and are reported. Government-donated capital assets are stated at their
market value on the date donated.
Major outlays for capital assets and improvements are capitalized as projects are
constructed. The costs of normal maintenance and repairs that do not add to the value
of the asset or materially extend asset lives are not capitalized.
Capital assets of enterprise and internal service funds are recorded at cost. The capital
assets of the airport are carried at cost and include those acquired with capital
contributed by the Federal Government. Capital improvements financed by special
assessments that provide capital assets to a government’s Proprietary funds are
capitalized on the fund’s balance sheet and are offset by contributed capital.
Capital assets of all funds are depreciated, and are calculated on the straight-line
method utilizing estimated lives as follows:
Capitalization Depreciation Estimated
Asset Threshold MethodUseful Life
Building $5,000 Straight-line 10 - 50 years
Improvement $5,000 Straight-line 10 - 50 years
Equipment $5,000 Straight-line 3 - 20 years
Infrastructure $5,000 Straight-line 25 - 50 years
58
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
At the inception of capital leases at the government fund reporting level, expenditures
and an “other financing source” of an equal amount are reported as the net present
value of future minimum lease payments.
9. DEFERRED CREDITS/CHARGES
Deferred charges and credits include the premium, discount and issuance costs of
revenue bonds that are amortized over the life of the bond issue. Deferred credits and
charges also include undistributed court receipts.
10. COMPENSATED ABSENCES
City employees accrue vacation leave at a variable rate based on years of service. In
general, employees are allowed to accumulate vacation leave up to what would be
earned in two years.
Unaffiliated employees accrue sick leave at the rate of one day per month up to 960
hours. Sick leave accumulations over 960 hours at year-end are paid at 25%. Sick
leave is not paid upon termination except in some instances upon separation in good
standing, where employees hired before 12/31/1984 can be reimbursed at their current
rate for unused sick leave up to a maximum of 960 hours, at a rate based on years of
service. The City’s union contracts have varied sick leave accruals and payout options.
In general, non-exempt employees can accrue up to 80 hours of compensatory time.
The City reports compensated absences as liabilities in the government-wide statement
of net assets and in proprietary funds. Vacation, compensatory time, and sick leave are
calculated separately for each employee using the rules described above.
Governmental funds recognize expenditures for vacation, sick, and compensatory time
when paid. Proprietary and pension trust funds recognize the expense and accrue a
liability for vacation and sick leave pay as the leave is earned.
All compensated absence liabilities include salary-related payments, where applicable.
11. DEFERRED REVENUES
This account reflects the amounts of taxes and other long-term receivables for which the
revenue recognition criteria have not been met. It also reflects prepayments on
accounts and grants received in advance.
12. RESERVATIONS AND DESIGNATIONS OF FUND EQUITY
In Governmental funds, reserves are used to indicate a portion of fund balance that is
not appropriable for expenditure or is legally segregated, and designations are used to
indicate tentative managerial plans for financial resource utilization in a future period. In
proprietary funds, net assets are generally reserved in connection with restricted assets
or for legal segregation. These reserves are identified on the balance sheet of each
fund type.
59
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
F. REVENUES, EXPENDITURES AND EXPENSES
Under the modified accrual basis of accounting:
Charges for services, interest on investments, and rents generally are considered
measurable and available when earned in Governmental funds.
Taxes and federal or state entitlements or shared revenues that have been collected but
not remitted by an intermediary collection agency to the City are considered measurable
and available.
Special assessments are considered measurable and available when they become due.
Grants are considered measurable and available to the extent that expenditures have
been made. Other intergovernmental revenues are considered measurable and
available when earned.
Interfund revenues for goods and services are considered measurable and available
when earned.
Proceeds from sale or loss of capital assets are recognized as other financing sources.
Revenues from taxpayer-assessed taxes (i.e., sales tax), net of estimated refunds, are
recognized when measurable and available to finance expenditures of the current
period.
All other revenues are either not measurable or considered not available until collected.
Expenditures are generally recognized when incurred, except for principal and interest
on general long-term debt, which are reported as expenditures when paid, and
compensated absences, which are reported as expenditures when liquidated from
expendable available financial resources.
Under the accrual basis of accounting:
Revenues are recognized when earned and expenses are recognized when incurred.
Contributions of capital in proprietary fund financial statements arise from internal and
external contributions of capital assets or from grants or outside contributions of
resources restricted to capital acquisition and construction.
Transfers between government and business-type activities on the government-wide
statement of activities are reported as general revenues. Transfers between funds reported
in the governmental activities column are eliminated, as are transfers between funds
reported in the business-type activities column.
G. ESTIMATES
The preparation of the financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and accompanying
notes. Actual results may differ from those estimates.
60
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
H. CHANGES IN ACCOUNTING STANDARDS
The Governmental Accounting Standards Board (GASB) has issued Statement No. 34
Basic Financial Statements – and Management’s Discussion and Analysis – for State and
Local Governments, Statement No. 37 Basic Financial Statements – and Management’s
Discussion and Analysis – for State and Local Governments: Omnibus – an amendment of
GASB Statements No. 21 and No. 34, and Statement No. 38 Certain Financial Statement
Note Disclosures. These new accounting and reporting standards impacted the City’s
revenue and expenditure recognition and assets, liabilities, and fund equity reporting. The
new standards also required reformatting of the financial statements and restating beginning
balances. These new GASB standards were implemented in 2003 except for the full
reporting of infrastructure assets, which was implemented this year.
NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
There have been no material violations of finance-related legal or contractual provisions, and there
have been no expenditures exceeding legal appropriations in any of the funds of the City of Auburn.
NOTE 3 – DEPOSITS AND INVESTMENTS
At December 31, 2004, the carrying amount of the City’s cash demand deposits with Key Bank
totaled $2,661,159 while the bank balance was $2,888,893. In addition, there was $10,000 in the
Drug Forfeiture Fund to be used for enforcement purposes, and $8,525 in various petty cash and
cashier change funds.
The Federal Deposit Insurance Corporation (FDIC) insures the City’s deposits up to $100,000 and
the Washington Public Deposit Protection Commission (WPDPC) insures amounts over $100,000.
The WPDPC is a multiple financial institution collateral arrangement, which provides for additional
assessments against members of the pool on a pro rata basis.
As required by State law, all investments of the City’s funds are obligations of the U.S. Government,
or deposits with Washington State banks. Pension and Non-expendable Trust funds are not subject
to these limitations. All temporary investments are stated at cost. Other investments are shown on
the balance sheet at fair value. Investments that were not at par value (cost) as of December 31,
2004 are reported at fair value. The City holds some deep discount federal securities that are
reported this way. The fair value of the position in the state investment pool is the same as the value
of shares held by the City in the pool.
During 2004, the net decrease in the fair value of investments being held for more than one year is
$240,291 at year-end.
During 2004, the city early-implemented the requirements of GASB Statement No. 40: Deposit and
Investment Risk Disclosures. These new disclosures were not mandated until 2005.
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CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
As of December 31, 2004, the City had the following investments and maturities:
SCHEDULE OF INVESTMENTS BY MATURITIES
AS OF DECEMBER 31, 2004
Investment maturities
FairLess than1 to 22 to 3Greater than
Investment TypeValue1 yearyearsyears3 years
State investment pool$62,042,332$62,042,332$0$0$0
US Treasuries87,62000087,620
US Agencies23,141,2916,776,8919,416,9006,947,5000
$85,271,243$68,819,223$9,416,900$6,947,500$87,620
Reconciliation to government-
wide statement of net assets:
Total investments above$85,271,243
Plus: cash in checking and petty cash2,679,684
Less: cash investments in fiduciary funds(3,713,355)
Total cash and investments, government-
wide statement of net assets$84,237,572
Interest Rate Risk
As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s
investment policy limits the maximum maturity of an investment to not greater than three years,
unless an investment is matched to an anticipated future cash flow.
Credit Risk
State law and the City’s investment policy limits the instruments in which the City may invest. These
include:
1. United States bonds.
2. United States certificates of indebtedness.
3. Bonds or warrants of the State of Washington.
4. General obligation or utility revenue bonds or warrants of its own or of any other city or town in
the State.
5. Its own bonds or warrants of a local improvement district which are within the protection of the
local improvement guaranty fund.
6. Savings or time accounts in designated public depositories.
7. Certificates, notes or bonds of United States agencies, or corporations wholly owned by the
United States.
8. Repurchase agreements.
9. Banker’s acceptances.
10. Federal Home Loan Bank notes and bonds, Federal Land Bank bonds, Federal National
Mortgage Association notes, debentures and guaranteed certificates of participation, or
obligations of any other government sponsored corporation whose obligations are or may be
eligible as collateral for advances to member banks as determined by the Board of Governors of
the Federal Reserve System or any portion thereof in investment deposits as defined in RCW
39.8.010 secured by collateral in accordance with RCW 39.58.
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CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
11. Interim financing warrants of local improvement districts.
12. State Local Government Investment Pool.
As of December 31, 2004, the City had investments in a limited number of investment instruments as
follows:
Federal Home Loan Bank bonds
Federal National Mortgage Association bonds
Federal Farm Credit Bank bonds
Federal Home Loan Mortgage Corporation bonds
State Local Government Investment Pool
With the exception of the State Local Government Investment Pool, which is not rated, all of the
investments above carried a rating of AAA by Standard & Poor’s rating service at December 31,
2004.
Concentration of Credit Risk
The City diversifies its investments by security type and institution. The investment policy states:
“With the exception of US Treasury securities and the State Investment Pool, no more than 20% of
the City’s total investment portfolio will be invested in a single security type or with a single financial
institution”.
Other information
Effective 2002, the City has established arrangements with Bank of New York for safekeeping of all
investments.
Below is a schedule of investments by fund type:
SCHEDULE OF INVESTMENTS BY FUND CATEGORY AND INVESTMENT TYPE
AS OF DECEMBER 31, 2004
State
InvestmentU.S.
PoolSecuritiesTotal
General Fund-$ 4,451,563$ 4,451,563$
Special Revenue Funds- 3,458,112 3,458,112
Capital Project Funds- 3,979,375 3,979,375
Permanent Funds- 1,021,178 1,021,178
Enterprise Funds- 8,485,364 8,485,364
Internal Service Funds- 995,313 995,313
Fiduciary Funds- 838,006 838,006
Treasurer's Residual Funds62,042,332 - 62,042,332
Total62,042,332$ 23,228,911$ 85,271,243$
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CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 4 – PROPERTY TAXES
For 2004, the City’s regular tax levy was $2.87 per $1,000 on a total 2003 assessed valuation of
$4,492,178,655 for a total regular levy of $12,924,765. State law provides that debt cannot be
incurred in excess of the following percentages of the taxable property of the City.
1.50% without a vote of the people
2.50% with a vote of the people
The City has additional authority to incur the following debt as a percentage of total valuation.
2.50% with a vote of the people, indebtedness is for utilities
2.50% with a vote of the people, indebtedness is for parks, or open space development
At December 31, 2004, the debt limits for the City were as follows:
With a Vote
For Parks or
WithoutGeneralForOpen Space
Itema VotePurposesUtilitiesDevelopmentTotal
1.50%1.00%2.50%2.50%Capacity
Legal Limit70,156,391$ 46,770,927$ 116,927,318$ 116,927,318$ 350,781,954$
Outstanding indebtedness(11,453,815) - - - (11,453,815)
Other debt(10,300,838) - - - (10,300,838)
Assets available4,706,455 - - - 4,706,455
Margin available53,108,193$ 46,770,927$ 116,927,318$ 116,927,318$ 333,733,756$
The County Treasurer acts as an agent to collect property taxes levied in the county for all taxing
authorities. Taxes are levied annually on January 1 on property values listed as of the prior August
31.
The County assesses property at 100% of fair value. A revaluation of all property is required at least
once every four years and a physical inspection is required at least once every six years.
Property taxes levied by the County Assessor and collected by the County Treasurer become a lien
on the first day of the levy year and may be paid in two installments if the total amount exceeds $10.
The first half of real property taxes is due on April 30 and the balance is due October 31. Delinquent
taxes bear interest at the rate of 12% and are subject to additional penalties if not paid as scheduled.
At year-end, property taxes are recorded as a receivable with the portion not expected to be
collected within 30 days offset by deferred revenue. In the statement of activities, this deferred
revenue is referred to as “Unearned Revenue”. During the year, property tax revenues are
recognized when cash is received.
1. The Washington State Constitution limits the total regular property taxes to 1% of assessed
valuation or $10 per $1,000 of value. If the taxes of all districts exceed this amount, each is
proportionately reduced until the total is at or below the 1% limit.
2. Washington State law in RCW 84.55.010 limits the annual growth of regular property taxes
to the lesser of 1% or the rate of inflation. With a vote of the majority of the voters within a
taxing district, the 1% levy limitation can be “lifted” and additional taxes may be levied.
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CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations.
Property taxes are recorded as receivable and offset by a deferred revenue account when levied.
Since state law allows for the sale of property for failure to pay taxes, no estimate of uncollectible
taxes is made.
NOTE 5 – INTERFUND ACTIVITY
The next two tables summarize interfund activity during the past year. The first table details
transfers while the second lists loan activity. Transfers are legally authorized transfers of resources
from a fund receiving revenue to the fund through which resources are to be expended.
Operating Transfers
FundsTransfer OutTransfer In
Governmental funds:
General fund834,000$ 1,980,883$
Special revenue funds:
Street fund787,665 150,558
Arterial street fund110,000 771,500
Local Law Enforce Block Grants- 4,500
1986 parks & street improvement218 -
Mitigation fees819,500 -
Debt service funds:
1998 library GO- 306,500
LID guarantee27,676 89,807
Special assessments2,307 17,676
Capital projects fund:
Park construction- -
Capital improvement projects708,058 625,000
Proprietary funds:
Water126,000 -
Sewer365,000 -
Storm drainage166,000 -
Solid waste- -
Airport- -
Cemetery- 30,000
Commercial retail- -
Internal service funds:
Insurance- -
Equipment rental- -
Permanent funds:
Cemetery endowed care30,000 -
Total3,976,424$ 3,976,424$
All transfers above are considered routine.
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CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
Loans between funds are classified as interfund loans receivable and payable or advances to and
from other funds on the balance sheet, depending on the time period for which the loan was made.
Interfund loans do not affect total fund equity.
Interfund LoansBalanceBalance
Due FromDue ToPurpose1/1/2004New LoansRepayments12/31/2004
City street fundGeneral fundShort-term cash loan-$ 2,600$ 2,600$ -$
Comm Dev Blk GrantGeneral fundShort-term cash loan- 397,000 313,000 84,000
Local Law Blk GrantGeneral fundShort-term cash loan- 3,600 3,600 -
LID #347LID guaranteeShort-term cash loan- 18,000 18,000 -
Total interfund loans-$ 421,200$ 337,200$ 84,000$
NOTE 6 – DUE FROM OTHER GOVERNMENTAL UNITS
As of December 31, 2004, the City had receivables due from other governmental units as follows:
Due from Other Governmental Units
General fund1,761,118$
Arterial street fund1,107,855
Block Grant fund183,344
Capital improvement projects fund-
Solid waste fund17,638
Airport fund35,939
Agency disbursement fund1,530
Total3,107,424$
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CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 7 – CAPITAL ASSETS AND DEPRECIATION
Capital asset activity for the year ended December 31, 2004 is as follows:
Schedule of Capital Asset Activity
BalanceDecreases/Balance
(1)
12/31/03
IncreasesAdjustments12/31/04
Governmental activities:
Capital assets, not being depreciated:
Land32,273,965$ 2,380,554$ -$ 34,654,519$
Construction in progress619,893 1,330,275 (619,893) 1,330,275
Total capital assets, not being depreciated32,893,858 3,710,829 (619,893) 35,984,794
Capital assets, being depreciated:
Buildings10,700,398 10,877,385 - 21,577,783
Improvements other than buildings9,292,243 888,171 (28,251) 10,152,163
Machinery and equipment13,504,051 2,608,938 (470,106) 15,642,883
Joint venture4,316,946 - (475,640) 3,841,306
Infrastructure161,615,481 2,183,306 - 163,798,787
Total capital assets being depreciated199,429,119 16,557,800 (973,997) 215,012,922
Less: accumulated depreciation for:
Buildings(6,006,681) (353,878) 825,368 (5,535,191)
Improvements other than buildings(6,732,515) (516,878) (120,984) (7,370,377)
Machinery and equipment(8,145,862) (1,201,266) 322,542 (9,024,586)
Joint venture- (111,607) (852,294) (963,901)
Infrastructure(34,401,532) (5,572,205) 237,896 (39,735,841)
Total accumulated depreciation(55,286,590) (7,755,834) 412,528 (62,629,896)
Total capital assets, being depreciated, net144,142,529 8,801,966 (561,469) 152,383,026
Governmental activities capital assets, net177,036,387$ 12,512,795$ (1,181,362)$ 188,367,820$
Business-type activities:
Capital assets, not being depreciated:
Land12,867,526$ 616,441$ -$ 13,483,967$
Construction in progress1,968,837 2,256,341 (2,668,173) 1,557,005
Total capital assets, not being depreciated14,836,363 2,872,782 (2,668,173) 15,040,972
Capital assets, being depreciated:
Buildings6,609,901 716,364 - 7,326,265
Improvements other than buildings143,315,775 4,681,566 (91,221) 147,906,120
Machinery and equipment2,952,761 70,125 (16,820) 3,006,066
Total capital assets being depreciated152,878,437 5,468,055 (108,041) 158,238,451
Less: accumulated depreciation for:
Buildings(2,651,485) (210,845) - (2,862,330)
Improvements other than buildings(40,457,652) (4,359,902) - (44,817,554)
Machinery and equipment(1,858,616) (145,365) 14,119 (1,989,862)
Total accumulated depreciation(44,967,753) (4,716,112) 14,119 (49,669,746)
-
Total capital assets, being depreciated, net107,910,684 751,943 (93,922) 108,568,705
-
Business-type activities capital assets, net122,747,047$ 3,624,725$ (2,762,095)$ 123,609,677$
(1)
Beginning governmental activity balances include a prior period adjustment of $129,775,322 related to
the GASB 34 infrastructure adjustment
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CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
Depreciation expense was charged to functions/programs of the City as follows:
Government activities:
General government$ 293,587
Public safety 443,631
Transportation 5,574,216
Physical environment 110,937
Culture and recreation 611,211
Capital assets held by the City's internal service funds are charged to the various722,253
functions based on their usage of the assets
Total depreciation expense - governmental activities7,755,835$
Business-type activities
Water$ 2,056,472
Sanitary sewer 1,179,836
Storm water 889,869
Solid waste 20,817
Airport 256,025
Cemetery 79,264
Golf course 139,827
Commercial retail 94,003
Total depreciation expense - business-type activities4,716,113$
NOTE 8 – RECORDED VACATION, SICK LEAVE, AND POST-EMPLOYMENT BENEFITS
In accordance with GASB Statement No. 16, the City accrues vacation and sick leave pay. The
accrual is shown on the government-wide statement of net assets for both governmental and
proprietary funds. The accrual is also seen in the separate proprietary fund balance sheets, but
is excluded from the separate governmental fund balance sheets since it is not currently due and
payable at year-end (please refer to Note 10).
In addition to pension benefits described in Note 9, the City provides post-retirement benefits, in
accordance with state statutes, to all LEOFF 1 retirees. Currently, 66 retirees meet the eligibility
requirements. The City provides long-term care, medical insurance, and reimburses all validated
claims for medical, dental and hospitalization costs incurred by retirees. Expenditures for post-
retirement health care benefits are recognized as retirees report claims. During the year,
expenditures of $796,136 were recognized for post-retirement health care. This represents a
$110,571 increase from the previous year.
NOTE 9 – PENSION PLANS
Substantially all City full-time and qualifying part-time employees participate in one of the
following statewide retirement systems administered by the Washington State Department of
Retirement Systems, under cost-sharing multiple-employer public employee defined benefit and
defined contribution retirement plans. The Department of Retirement Systems (DRS), a
department within the primary government of the State of Washington, issues a publicly available
comprehensive annual financial report (CAFR) that includes financial statements and required
supplementary information for each plan. The DRS CAFR may be obtained by writing to:
Department of Retirement Systems, Communications Unit, P.O. Box 48380, Olympia, WA
98504-8380. The following disclosures are made pursuant to GASB Statement No. 27,
Accounting for Pensions by State and Local Government Employers.
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CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
Public Employees’ Retirement Systems (PERS) Plans 1, 2, and 3
Plan Description
PERS is a cost-sharing multiple-employer retirement system comprised of three separate plans
for membership purposes: Plans 1 and 2 are defined benefit plans and Plan 3 is a combination
defined benefit/defined contribution plan. Membership in the system includes: elected officials;
state employees; employees of the Supreme, Appeals, and Superior courts (other than judges in
a judicial retirement system); employees of legislative committees; community and technical
colleges, college and university employees not in national higher education retirement programs;
judges of district and municipal courts; and employees of local governments. PERS participants
who joined the system by September 30, 1977 are Plan 1 members. Those who joined on or
after October 1, 1977 and by either, February 28, 2002 for state and higher education employees,
or August 31, 2002 for local government employees, are Plan 2 members unless they exercise an
option to transfer their membership to Plan 3. PERS participants joining the system on or after
March 1, 2002 for state and higher education employees, or September 1, 2002 for local
government employees have the irrevocable option of choosing membership in either PERS Plan
2 or PERS Plan 3. The option must be exercised within 90 days of employment. An employee is
reported in Plan 2 until a choice is made. Employees who fail to choose within 90 days default to
PERS Plan 3. PERS defined benefit retirement benefits are financed from a combination of
investment earnings and employee and employer contributions. PERS retirement benefit
provisions are established in state statute and may be amended only by the state legislature.
Plan 1 retirement benefits are vested after an employee completes 5 years of eligible service.
Plan 1 members are eligible for retirement at any age after 30 years of service, or at the age of 60
with 5 years of service, or at the age of 55 with 25 years of service. The annual pension is 2% of
the average final compensation per year of service, capped at 60%. The average final
compensation is based on the greatest compensation during any 24 eligible consecutive
compensation months. If qualified, after reaching the age of 66, a cost-of-living allowance is
granted based on years of service credit and is capped at 3% annually.
Plan 2 retirement benefits are vested after an employee completes 5 years of eligible service.
Plan 2 members may retire at the age of 65 with 5 years of service, or at the age of 55 with 20
years of service, with an allowance of 2% of the average final compensation per year of service.
The average final compensation is based on the greatest compensation during any eligible
consecutive 60-month period. Plan 2 retirements prior to age 65 receive reduced benefits. If
retirement is at age 55 or older with at least 30 years of service, a 3% per year reduction applies;
otherwise an actuarial reduction will apply. There is no cap on years of service credit, and a cost-
of-living allowance is granted (indexed to the Seattle Consumer Price Index), capped at 3%
annually.
Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit component,
and member contributions finance a defined contribution component. The defined benefit portion
provides a benefit calculated at 1% of the average final compensation per year of service. The
average final compensation is based on the greatest compensation during any eligible
consecutive 60-month period. Plan 3 members become eligible for retirement if they have: at
least 10 years of service; or 5 years including 12 months that were earned after age 54; or 5
service credit years earned in PERS Plan 2 prior to June 1, 2003. Plan 3 retirements prior to the
age of 65 receive reduced benefits. If retirement is at age 55 or older with at least 30 years of
service, a 3% per year reduction applies; otherwise an actuarial reduction will apply. There is no
cap on years of service credit; and Plan 3 provides the same cost-of-living allowance as Plan 2.
The defined contribution portion can be distributed in accordance with an option selected by the
member, either as a lump sum or pursuant to other options authorized by the Employee
Retirement Benefits Board.
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CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
There are 1,168 participating employers in PERS. Membership in PERS consisted of the
following as of the latest actuarial valuation date for the plans of September 30, 2003:
Retirees and beneficiaries receiving benefits 65,362
Terminated plan members entitled to but not yet receiving benefits 20,001
Active plan members vested 100,469
Active plan members non-vested 54,081
Total 239,913
Funding Policy
Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates,
Plan 2 employer and employee contribution rates, and Plan 3 employer contribution rates.
Employee contribution rates for Plan 1 are established by statute at 6% for state agencies and
local government unit employees, and at 7.5% for state government elected officers. The
employer and employee contribution rates for Plan 2 and the employer rate for Plan 3 are
developed by the Office of the State Actuary to fully fund Plan 2 and the defined benefit portion of
Plan 3. All employers are required to contribute at the level established by the Legislature.
PERS Plan 3 defined contribution is a non-contributing plan for employers. Employees who
participate in the defined contribution portion of PERS Plan 3 do not contribute to the defined
benefit portion of PERS Plan 3. The Employee Retirement Benefits Board sets Plan 3 employee
contribution rates. Six rate options are available ranging from 5 to 15%; two of the options are
graduated rates dependent on the employee’s age. The methods used to determine the
contribution requirements are established under state statute in accordance with RCW chapters
41.40 and 41.45.
The required contribution rates expressed as a percentage of current year covered payroll, as of
December 31, 2004 were as follows:
PERS Plan 1PERS Plan 2PERS Plan 3
Employer*1.38%1.38%1.38%**
Employee6.00%1.18%***
* The employer rates include the employer administrative expense fee currently set at 0.19%.
** Plan 3 defined benefit portions only.
*** Variable from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3
members.
Both the City of Auburn and the employees made the required contributions. The City’s required
contributions for the years ended December 31 were:
PERS Plan 1PERS Plan 2 PERS Plan 3
2004$17,192$150,805$20,221
2003$18,839$151,172$14,286
2002$21,847$164,228$436
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CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
Law Enforcement Officers’ and Fire Fighters’ Retirement Systems (LEOFF) Plans 1 and 2
Plan Description
LEOFF is a cost-sharing multiple-employer retirement system comprised of two separate defined
benefit plans. Membership in the system includes all full-time, fully compensated, local law
enforcement officers and firefighters. LEOFF is comprised primarily of non-state employees, with
the exception of the Department of Fish and Wildlife enforcement officers, who were first included
prospectively effective July 27, 2003. LEOFF participants who joined the system by September
30, 1977 are Plan 1 members. Those who joined on or after October 1, 1977 are Plan 2
members. Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established to
provide governance of LEOFF Plan 2. The Board’s duties include adopting contribution rates and
recommending policy changes to the Legislature for the LEOFF Plan 2 retirement plan. Effective
January 1, 2003 firefighter emergency medical technicians (EMTs) may transfer PERS Plan 1 or
Plan 2 service credit to LEOFF Plan 2 if while employed for the city, town, county or district, the
EMT’s job was relocated to a fire department from another city, town, county or district. LEOFF
defined benefits are financed from a combination of investment earnings, employer and employee
contributions, and a special funding situation in which the state pays the remainder through state
legislative appropriations. LEOFF retirement benefit provisions are established in state statute
and may be amended only by the State Legislature.
Plan 1 retirement benefits are vested after an employee completes 5 years of eligible service.
Plan 1 members are eligible for retirement with five years of service at the age of 50. The
benefits per year of service calculated as a percent of final average salary are as follows:
Term of Service Percent of Final Average Salary
20 or more years 2.0%
10 but less than 20 years 1.5%
5 but less than 10 years 1.0%
The final average salary is the basic monthly salary received at the time of retirement, provided a
member has held the same position or rank for 12 months preceding the date of retirement.
Otherwise, it is the average of the highest consecutive 24 months’ salary within the last 10 years
of service. If membership was established in LEOFF after February 18, 1974, the service
retirement benefit is capped at 60% of final average salary. A cost-of-living allowance is granted
(indexed to the Seattle Consumer Price Index).
Plan 2 retirement benefits are vested after an employee completes 5 years of eligible service.
Plan 2 members may retire at age 50 with 20 years of service, or at the age of 53 with 5 years of
service, with an allowance of 2% of the final average salary per year of service. The final
average salary is based on the highest consecutive 60 months. Plan 2 retirements prior to age
53 are reduced 3% for each year that the benefit commences prior to age 53. There is no cap on
years of service credit; and a cost-of-living allowance is granted (indexed to the Seattle
Consumer Price Index), capped at 3% annually.
There are 368 participating employers in LEOFF. Membership in LEOFF consisted of the
following as of the latest actuarial valuation date for the plans of September 30, 2003:
Retirees and beneficiaries receiving benefits 8,370
Terminated plan members entitled to but not yet receiving benefits 453
Active plan members vested 11,548
Active plan members non-vested 4,003
Total 24,374
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CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
Funding Policy
Starting on July 1, 2000, Plan 1 employers and employees will contribute 0% as long as the plan
remains fully funded. Employer and employee contribution rates are developed by the Office of
the State Actuary to fully fund the plan. Plan 2 employers and employees are required to pay at
the level adopted by the Department of Retirement Systems in accordance with RCW chapter
41.45. All employers are required to contribute at the level required by state law. The
Legislature, by means of a special funding arrangement, appropriated money from the state
general fund to supplement the current service liability and fund the prior service costs of Plan 2
in accordance with the requirements of the Pension Funding Council. However, this special
funding situation is not mandated by the state constitution and this funding requirement could be
returned to the employers by a change of statute. The methods used to determine the
contribution rates are established under state statute in accordance with RCW chapters 41.26
and 41.45.
The required contribution rates expressed as a percentage of current year covered payroll, as of
December 31, 2004 were:
LEOFF Plan 1 LEOFF Plan 2
Employer*0.19%3.25%
Employee0.00%5.09%
Staten/a2.03%
* The employer rates include the employer administrative expense fee currently set at 0.19%.
Both the City of Auburn and the employees made the required contributions. The City’s required
contributions for the years ended December 31 were:
LEOFF Plan 1 LEOFF Plan 2
2004$1,288$370,192
2003$1,383$337,417
2002$1,587$297,215
City of Auburn Fire Relief and Pension Plan
The City is the administrator of the Firemen’s Pension Plan (Plan), which is a closed, single-
employer defined benefit pension plan that was established in conformance with RCW Chapters
41.16 and 41.18. This plan provided retirement and disability benefits, annual cost-of-living
adjustments, and death benefits to plan members and beneficiaries. Membership is limited to
firefighters employed prior to March 1, 1970 when the LEOFF retirement system was established.
The City’s obligation under the Firemen’s Pension Plan consists of paying all benefits, including
payments to beneficiaries and healthcare, for firefighters who retired prior to March 1, 1970, and
excess pension and healthcare benefits of LEOFF for covered firefighters who retired after March
1, 1970. The Plan does not issue a separate financial report.
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CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
Under state law, the Firemen’s Pension Plan is provided an allocation of 25% of all monies
received by the state from taxes on fire insurance premiums, interest earnings, member
contributions made prior to the inception of LEOFF, and City contributions required to meet
projected future pension obligations. The actuary determined as of January 1, 2003, that no
future City contributions would be required beyond future revenues from state fire insurance taxes
and interest earnings. Administrative costs, such as City staff time and actuarial valuation costs
are funded from interest earnings or City contributions.
Membership of the Firemen’s Pension Plan consisted of 17 eligible, of which 15 are receiving
benefits.
GASB STATEMENTS No. 25 and No. 27 SCHEDULE OF FUNDING PROGRESS
(rounded to thousands)
Unfunded
Actuarial ActuarialUAAL as a
Actuarial AccruedAccruedPercentage
ActuarialValueLiabilities -LiabilitiesFundedCoveredof Covered
Valuation Dateof AssetsEntry Age(UAAL)RatioPayrollPayroll
December 31, 1997 *$1,984$2,278$29487.10%$0N/A
January 1, 1999$2,096$2,157$6097.17%$11951%
January 1, 2001$3,632$2,332($1,300)155.75%$58-2241%
January 1, 2003$3,514$2,428($1,086)144.73%$61-1780%
January 1, 2005$3,160$2,172($988)145.00%$64-1544%
This plan primarily covers inactive participants. There are no current member contributions.
Prior to adoption of GASB Statement No. 25 in 1997, the Annual Required Contribution (ARC) was
not determined pursuant to the parameters required by the statement. Therefore, no liability prior to
1997 has been shown.
* Information prepared by prior actuary.
GASB STATEMENT No. 25 GASB STATEMENT No. 27
SCHEDULE OF EMPLOYER CONTRIBUTIONSTHREE YEAR TREND INFORMATION
FiscalActualAnnual RequiredPercentageAnnual PercentageNet
YearEmployerContributionof ARC Pension Costof APCPension
EndingContributions(ARC)Contributed(APC)ContributedObligation
December 31, 1997*$27,847$38,76372%
December 31, 1998$24,822$38,76364%
December 31, 1999$52,738$5,381980%
December 31, 2000$31,721$5,381590%$5,520574.66%($48,808)
December 31, 2001$37,281$0 N/A$34110932.84%($85,748)
December 31, 2002$40,869$0 N/A$6845975.00%($125,933)
December 31, 2003$45,664$0 N/A$1,1374016.18%($170,460)
December 31, 2004($137,783)($91,881) N/A($90,143) N/A($122,820)
* Information prepared by prior actuary.
73
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
GASB STATEMENT No. 27
Annual Development of Pension Cost
FISCAL ARC atAmort.AnnualTotal
YEAREnd ofInterest onARCFactorPension CostEmployer Change inNPO
(2)(1)(3)
Year NPOBalance
ENDINGAdjustment**(APC)ContributionsNPO
12/31/1997$38,763$0$012.88%$38,763$27,847$10,916$10,916
12/31/1998$38,763$873$84812.88%$38,788$24,822$13,966$24,882
12/31/1999$5,381$1,742$1,87413.28%$5,249$52,738($47,489)($22,607)
12/31/2000$5,381($1,582)($1,721)13.14%$5,520$31,721($26,201)($48,808)
12/31/2001$0($3,417)($3,758)12.99%$341$37,281($36,940)($85,748)
12/31/2002$0($6,002)($6,686)12.83%$684$40,869($40,185)($125,933)
12/31/2003$0($8,815)($9,952)12.65%$1,137$45,664($44,527)($170,460)
12/31/2004($91,881)($11,932)($13,670)12.47%($90,143)($137,783)$47,640($122,820)
(1)
8.00% interest rate was used for years prior to January 1, 1999: 7.00% thereafter.
(2)
A change in consulting actuaries resulted in a recommended change in the actuarial methods and assumptions.
(3)
The Net Pension Obligation (NPO) balance is reflected as part of Deferred Charges on the Government-wide
Statement of Net Assets
** Based on 30-year level-dollar closed amortization as of January 1, 1999 (27 years as of January 1, 2003).
The information presented in the preceding required schedules was determined as part of the
actuarial valuations at the date indicated.
Valuation dateJanuary 1, 2005
Actuarial cost method
Entry age normal Actuarial
cost method
Amortization methodLevel percent closed
Remaining amortization period25 years
Asset valuation methodMarket value
Actuarial Assumptions:
Investment rate of return6%
Projected salary increases4%
Cost-of living adjustments3%
NOTE 10 – LONG-TERM DEBT
are direct obligations of the City for which its full faith and credit are
General Obligation Bonds
pledged. Debt service for voter-approved issues, of which the City has none, would be funded by
special property tax levies. Debt service for City Council authorized bonds, also called
councilmanic bonds, is funded from regular property taxes or general revenues, and is generally
paid from debt service funds but can be paid from other designated funds.
74
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
General Obligation Bonds outstanding at year-end are as follows:
1998 limited tax general obligation bonds were issued for construction of a library to be
?
owned and operated by the King County Rural Library District. These 20-year bonds
mature in 2018 and are paid from a dedicated debt service fund.
1999 limited tax general obligation bonds were issued for construction of hangars at the
?
Auburn Municipal Airport. These 20-year bonds mature in 2019 and are paid from the
airport fund.
Valley Communication Center Development Authority issued general obligation bonds in
?
2000 for a new dispatch facility. The City is contracted to pay 20% of the debt service of
these 15-year bonds that mature in 2015. This debt is paid from the general fund.
are payable from water and storm drainage utility revenues generated by these
Revenue Bonds
enterprise funds.
Special Assessment Bonds are not a direct responsibility of the City, but are funded from the
collection of special assessment payments. Debt service principal and interest costs are paid
from the individual LID funds. The City is obligated for special assessment debt to the extent that
it is required to establish an LID guarantee fund for the purpose of guaranteeing the payment of
local improvement bonds in the event there are insufficient funds in the individual LID fund. As of
December 31, 2004, a total of $19,499 of special assessments was delinquent, and there was
$13,187 in delinquent interest and penalties.
State of Washington Public Works Trust Fund Loans are a direct responsibility of the City.
Auburn currently has three outstanding loans with a remaining total balance of $7,066,042. The
loans are being repaid from water fund revenues over a 20-year period that begins upon each
project completion.
Capital Leases represent acquisitions where the related assets and liabilities are recorded in the
City’s financial records. In 2002 the City entered into a 99-year lease with the Central Puget
Sound Regional Transit Authority (Sound Transit) for use of 180 parking stalls and the right to
sublease the Commercial Tenant area. The total lease obligation is $2,106,195 to be paid in 3
annual installments of $702,065 beginning 7/26/2002. The lease was recorded at a value of
$2,069,173, which represents the present value of the future minimum lease payments at
inception. The final lease payment was recorded in 2004. In 2003, the City entered into a 50-
year lease with Auburn on Main, LLC for use of the Auburn Justice Center. The total lease
obligation of $10,350,000 is to be paid in annual installments beginning on the lease
commencement date. In conjunction with this lease agreement, the City was granted an option to
purchase the premises for the sum of $10,350,000. The City exercised this purchase option in
February 2005, with approximately half the funds coming from the general fund, and half coming
from the capital improvement project fund.
The following schedules summarize the long-term debt transactions of the City for the year ended
December 31, 2004. The first table summarizes all debt transactions for Auburn, while the
second provides detailed information on all long-term debt. Additional schedules reflect total
annual debt service requirements to maturity and the reconciliation of debt by fund type.
CHANGES IN LONG-TERM DEBT SUMMARY
Special Employee Leave
General ObligationAssessmentBenefit
UtilityTotal
Long-term debt payable 1/1/047,777,643$ 16,658,695$ 347,904$ 2,967,598$ 27,751,840$
Added10,350,000 205,880 - 1,994,006 12,549,886
Retired(1,050,856) (1,578,533) (119,550) (1,898,212) (4,647,151)
Long-term debt payable 12/31/0417,076,787$ 15,286,042$ 228,354$ 3,063,392$ 35,654,575$
75
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
DEBT SERVICE REQUIREMENT TO MATURITY
General ObligationUtilitySpecialTotal
Employee
Bonds/LeaseBonds/LoansAssessmentsLong-Term Debt
Leave Benefits
GrossLease NegativeNet
YEARPrincipalAmortizationPrincipalInterestPrincipalInterestPrincipalInterestPrincipalPrincipalInterest
2005351,000$ (277,676)$ 73,324$ 1,343,110$ 1,499,194$ 474,678$ 35,959$ 15,142$ 1,670,266$ 3,278,743$ 1,832,930$
2006373,000 (305,889) 67,111 1,354,139 1,549,194 417,122 35,959 12,825 139,313 1,791,576
1,784,085
2007395,000 (336,969) 58,031 1,367,181 1,609,194 357,015 35,959 10,508 139,313 1,842,496
1,734,704
2008422,000 (371,207) 50,793 1,382,309 1,669,194 293,834 25,959 8,191 139,313 1,885,258
1,684,333
2009445,000 (369,672) 75,328 1,399,268 1,734,194 229,132 25,959 6,443 139,313 1,974,793
1,634,844
2010-20142,640,000 (1,212,699) 1,427,301 7,021,374 3,750,970 611,073 68,560 9,393 696,563 5,943,395
7,641,839
2015-20192,128,000 (1,217,953) 910,047 6,959,888 2,920,970 126,257 - - 139,313 3,970,330
7,086,146
2020-2024- (1,136,548) (1,136,548) 7,257,317 553,131 5,880 - - -
(583,417) 7,263,198
2025-2029- (903,764) (903,764) 7,759,026 - - - - -
(903,764) 7,759,026
2030-2034- (413,312) (413,312) 8,091,205 - - - - -
(413,312) 8,091,205
2035-2039508,693 - 508,693 8,090,548 - - - - -
508,693 8,090,548
2040-20442,145,965 - 2,145,965 7,485,184 - - - - -
2,145,965 7,485,184
2045-20494,960,597 - 4,960,597 5,826,290 - - - - -
4,960,597 5,826,290
2050-20549,253,221 - 9,253,221 2,378,854 - - - - -
9,253,221 2,378,854
TOTALS23,622,476$ (6,545,689)$ 17,076,787$ 67,715,693$ 15,286,042$ 2,514,991$ 228,354$ 62,501$ 3,063,392$ 35,654,575$ 70,293,186$
CHANGES IN LONG-TERM DEBT
InterestMaturityOriginalPrincipalBalanceBalanceDue Within
Issue Name Rates Date Amount Installments 12/31/03 Additions Reductions 12/31/04 One Year
Governmental debt:
General obligation bonds:
Limited G.O. library3.75-5.00%12/1/20184,000,000$ $110,000 - $290,0003,320,000$ -$ (160,000)$ 3,160,000$ 165,000$
Valley Communication G.O.4.30-5.75%12/1/20152,551,600 $96,600 - $233,0002,193,000 - (139,000) 2,054,000 146,000
Total general obligation bonds6,551,600 5,513,000 - (299,000) 5,214,000 311,000
Capital leases:
Sound Transit1.80%6/26/20042,069,173 $2,069,173689,643 - (689,643) - -
Auburn Justice Center9.72%11/12/205410,350,000 Varies (2)- 10,350,000 (27,213) 10,322,787 -
Total capital leases12,419,173 689,643 10,350,000 (716,856) 10,322,787 -
Employee leave benefit:
Compensated absences- 2,507,765 1,734,457 (1,622,971) 2,619,251 1,428,106
Special assessment bonds:
L.I.D. # 341/3484.40-5.70%10/1/2007817,332 Varies50,000 - (20,000) 30,000 -
L.I.D. # 346 (1)5.85%3/31/2009206,077 Varies32,077 - (16,550) 15,527 -
L.I.D. # 3476.85%5/1/2012587,827 Varies265,827 - (83,000) 182,827 -
Total special assessment bonds1,611,236 347,904 - (119,550) 228,354 -
Total governmental20,582,009$ 9,058,312$ 12,084,457$ (2,758,377)$ 18,384,392$ 1,739,106$
Business-type debt:
General obligation bonds
G.O. bond 19994.50-5.60%11/1/20191,655,000$ $5,000 - $190,0001,575,000$ -$ (35,000)$ 1,540,000$ 40,000$
Revenue bonds:
Utility sys. revenue 1997 (1)5.45-6.00%11/1/20165,000,000 $150,000 - $385,0003,755,000 - (205,000) 3,550,000 220,000
Utility sys. revenue 1999 (1)4.00-5.10%11/1/20098,345,000 $670,000 - $1,030,0005,475,000 - (805,000) 4,670,000 845,000
Total revenue bonds13,345,000 9,230,000 - (1,010,000) 8,220,000 1,065,000
Employee leave benefit:
Compensated absences- 459,833 259,549 (275,241) 444,141 242,160
Public Works Trust Fund loans:
PWTF 19991.00%7/1/20193,850,000 $182,3682,917,895 - (182,369) 2,735,526 182,368
PWTF 20010.50%7/1/20214,290,405 $227,0863,869,550 205,880 (214,975) 3,860,455 227,086
PWTF 20021.00%7/1/2022641,250 $24,740641,250 - (171,189) 470,061 24,740
Total Public Works Trust Fund loans8,781,655 7,428,695 205,880 (568,533) 7,066,042 434,194
Total proprietary23,781,655$ 18,693,528$ 465,429$ (1,888,774)$ 17,270,183$ 1,781,354$
Total all funds44,363,664$ 27,751,840$ 12,549,886$ (4,647,151)$ 35,654,575$ 3,520,460$
(1) Subject to federal arbitrage rules.
(2) Payments are subject to CPI increases and include a period of negative amortization, including 2005.
76
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
LONG-TERM DEBT RECONCILIATION
Long-Term
EnterpriseDebt12/31/04
Liabilities payable from restricted assets:
Revenue bonds1,248,900$ -$ 1,248,900$
Long-term bonds payable:
General obligation bonds1,540,000 5,214,000 6,754,000
Capital lease- 10,322,787 10,322,787
Revenue bonds6,971,100 - 6,971,100
Special assessments with- 228,354 228,354
government commitment
Public Works Trust Fund loans7,066,042 - 7,066,042
Employee leave benefits444,141 2,619,251 3,063,392
Total long-term debt17,270,183$ 18,384,392$ 35,654,575$
Revenue Bond Debt Service Coverage
The required debt service coverage for the 1997 and 1999 utility revenue bonds is 1.25. Debt
service coverage for 2004 was 2.36. Please refer to Schedule 16 in the statistical section.
The restricted rate stabilization fund for the utility revenue bonds was established to minimize the
effect on rates of revenue fluctuations between years. By transferring cash into this stabilization
fund, adjusted net revenue available for debt service, as defined, would be decreased by the
amount of the transfer. Conversely, transfers out of the account would increase adjusted net
revenue available for debt service.
NOTE 11 – CONSTRUCTION COMMITMENTS
At December 31, 2004 the City had the following contractual obligations on construction projects:
Building projects19,962$
Parks projects9,306
Street projects1,361,246
Utilities projects1,328,458
Total commitments2,718,972$
NOTE 12 – CEMETERY ENDOWMENT CARE FUND
The City maintains one permanent fund known as the cemetery endowed care fund. Paid into
this fund are 15% of all proceeds received from the sale of each grave, niche or crypt. This fund
is irreducible in principal and no part of the income of this fund shall ever be used for purposes
other than those specified upon the creation of the fund.
77
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
RCW 68.44.020 restricts the use of endowment net appreciation to endowment care “stipulated in
the instrument by which the fund was established”. For the City, the instrument that established
the fund is Auburn City Code section 3.04.080, and section 3.040.120 governs the use of the
fund.
ACC 3.04.120 restricts net interest or income from investments to the care of the lots and in the
improvement or embellishment of the cemetery or the erection or preservation of any buildings or
structures, fences or walks, or for the repair, preservation, erection or renewal of any tomb,
monument, grave, stone, fence, railing or other erection in or around the cemetery. The funds
may also be used for planting and cultivating trees, shrubs, flowers or plants in or around the
cemetery. All expenditures of income from the fund must first be authorized by the city council.
For 2004, of the $18,220 net appreciation on investments, $3,855 was available for expenditure,
and the rest was related to an unrealized gain on a long-term investment that matures in 2005.
Amounts that are available for expenditure are reflected as unrestricted net assets.
NOTE 13 – JOINT VENTURE / RELATED PARTY
The “Valley Communications Center” was established August 20, 1976, when an Interlocal
Agreement was entered into by four participating municipal corporations: Renton, Kent, Auburn
and Tukwila. The provisions and terms of the “Interlocal Cooperation Act”, pursuant to RCW
39.34, sanction the agreement. The initial duration of the agreement was five years and
thereafter is automatically extended for consecutive two-year periods, unless terminated by one
or more of the participating cities. Any such termination must be in writing and served upon the
other cities on or before July 1 in any one year and such termination shall then become effective
on the last day of such year.
On August 4, 1999 the Administration Board of Valley Communications Center voted to include
the City of Federal Way as a full participating member city as of January 1, 2000. The five
participating municipal corporations that include the cities of Renton, Kent, Auburn, Tukwila, and
Federal Way on April 17, 2000 entered into a new interlocal Agreement, pursuant to RCW 39.34,
et seq. This agreement reaffirmed Valley Communications Center as a governmental
administration agency pursuant to RCW 39.34.030 (3) (b).
The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved
consolidated emergency communications (dispatch) services for police, fire and medical aid to
the five participating cities and to the several subscribing agencies, which include King County
Fire Districts #2, #20, #26, #40, #43, #44, #47, Black Diamond Fire Department, Vashon Island
Fire Department, City of Pacific Police and Fire Departments, City of Algona Police Department,
City of Black Diamond Police Department, City of Des Moines Police Department, SeaTac Fire
Department, North Highline Fire Department, and King County EMS Units. In 1988, King County
Fire District #1 was annexed to the City of Tukwila. A separate agreement between Valley Com
and the subscribing agencies has been executed, which set forth condition of services and rates
charged.
The participating cities provide the majority of revenues to Valley Com. The method of allocating
the revenue source was changed in 1990 to a basis of prior years calls with actual first and
second quarter and estimated third and fourth quarter calls. The allocation of prorated financial
participation among the five participating cities is the percentage of estimated dispatched calls
attributed to each jurisdiction compared to the total actual and estimated dispatched calls, for the
period for January 1, through December 31. The percentages are applied to the current
approved budget, less revenue from subscribing agencies and all other sources.
The 2004 cost distribution for the five participating cities is as follows:
78
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
DispatchablePercent of
CallsTotal *
Renton63,95018.80%
Kent94,65827.82%
Auburn68,07420.01%
Tukwila37,01510.88%
Federal Way76,52422.49%
Total340,221100.00%
* Distribution of current year net income is based on these budgeted percentages.
Valley Com is served by an Administration Board composed of the Mayors or designated
representatives from the five participating cities of Renton, Kent, Auburn, Tukwila and Federal
Way. The Administration Board is responsible for the following functions: 1) Budget review and
recommendation to the legislative bodies of the participating cities, and budget adoption after
each legislative body has approved the required financial participation for the ensuing year; 2)
Approval of appointment and/or discharge of the Director; 3) Approval of personnel policy and
final decisions on all major policy changes; 4) Review and approval of all contracts.
In addition, an Operations Board provides direction and consists of two members of each
participating City’s public safety departments, including the heads of such departments or their
designees. The Operations Board performs the following functions: 1) Oversees the operation of
Valley Com, advises and makes recommendations to the Administration Board; 2) Makes
recommendations on Director selection; 3) Presents proposed policies and budget to the
Administration Board; 4) Approves disbursement of funds by the Director.
The Director presents a proposed budget to the Operations Board on or before August 15 of each
year. Said budget is then presented to the Administration Board by September 1 of each year.
The Administration Board can make changes to the proposed Valley Com budget as it finds
necessary, but final approval falls to the legislative body of each participating City in accordance
with the provisions of the Interlocal Agreement.
In August 1993, Valley Com entered into an Interlocal Cooperation Agreement, pursuant to
Chapter 39.34 RCW, with the sub-regions of King County, Seattle and Eastside Public Safety
Communications Agency (EPSCA). This agreement governs the development, acquisition and
installation of the 800 MHz emergency radio communications system (system) funded by the $57
million King County levy.
This agreement provides that upon voluntary termination of any sub-region participation in the
system, it surrenders its radio frequencies, relinquishes its equipment and transfers any
unexpended levy proceeds and association equipment replacement reserves to another sub-
region or consortium of sub-regions.
The share of equity belonging to the five participating cities is as follows:
ItemRentonKentAuburnTukwilaFederal WayTotal
Equity Jan. 1, 20044,583,805$ 6,181,790$ 4,312,119$ $2,990,2452,532,720$ 20,600,679$
Current year decrease(464,330)(512,593)(470,813)(421,998)(370,339)(2,240,073)
Equity Dec 31, 20044,119,475$ 5,669,197$ 3,841,306$ 2,568,247$ 2,162,381$ 18,360,606$
% of equity22.44%30.88%20.92%13.99%11.78%
% of 2004 distribution20.73%22.88%21.02%18.84%16.53%
79
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
Liabilities are the responsibility of the five participating cities in direct proportion to their equity
position.
Complete audited financial statements for Valley Communications Center can be obtained from
Valley Communications Center, 27519 108th Ave SE, Kent, WA 98030, or telephone 253-372-
1300.
NOTE 14 – CONTINGENCIES AND LITIGATION
As of December 31, 2004, a number of claims were pending against the City for damages and
legal actions. While the outcome of these actions is uncertain, no losses are clearly anticipated
at this time due to these pending claims. Any potential adverse judgment against the City also
would be subject to coverage under the City’s comprehensive liability insurance, including public
officials’ errors and omission insurance.
NOTE 15 – RISK MANAGEMENT & INSURANCE
Risk Management
The City of Auburn is a member of the Washington Cities Insurance Authority (WCIA).
Utilizing Chapter 48.62 RCW (Self-Insurance Regulation) and Chapter 39.34 RCW (Interlocal
Cooperation Act), nine cities originally formed WCIA on January 1, 1981. WCIA was created for
the purpose of providing a pooling mechanism for jointly purchasing insurance, jointly self-
insuring, and/or jointly contracting for risk management services. WCIA has a total of 108
members.
New members initially contract for a three-year term and thereafter automatically renew on an
annual basis. A one-year withdrawal notice is required before membership can be terminated.
Termination does not relieve a former member from its unresolved loss history incurred during
membership.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes
general, automobile, police, public officials’ errors or omissions, stopgap, and employee benefits
liability. Limits are $3 million per occurrence self insured layer, and $11 million per occurrence in
the re-insured excess layer with no annual aggregate except $10 million per member for public
officials’ errors and omissions. The excess layer is insured by the purchase of reinsurance and
insurance. Total limits are $14 million per occurrence. The Board of Directors determines the
limits and terms of coverage annually.
Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler
and machinery are purchased on a group basis. Various deductibles apply by type of coverage.
Property insurance and auto physical damage are self-funded from the members’ deductible to
$250,000 for all perils other than flood and earthquake, and insured above that amount by the
purchase of reinsurance.
In-house services include risk management consultation, loss control field services, claims and
litigation administration, and loss analyses. WCIA contracts for the claims investigation
consultants for personnel issues and land use problems, insurance brokerage and lobbyist
services.
80
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
WCIA is fully funded by its members, who make annual assessments on a prospectively rated
basis, as determined by an outside, independent actuary. The assessment covers loss, loss
adjustment, and administrative expenses. As outlined in the interlocal, WCIA retains the right to
additionally assess the membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by investment
of WCIA’s assets in financial instruments, which comply with all State guidelines. These revenues
directly offset portions of the membership’s annual assessment.
A Board of Directors governs WCIA, which is comprised of one designated representative from
each member. The Board elects an Executive committee and appoints a Treasurer to provide
general policy direction for the organization. The WCIA Executive Director reports to the
Executive Committee and is responsible for conducting the day-to-day operations of WCIA.
No settlement has exceeded insurance coverage over the past three years.
Workers’ Compensation
Title 51 RCW requires the City to ensure payment of benefits for job-related injuries and diseases
through the Workers’ Compensation fund or through self-insurance. The City participates in the
State of Washington’s Workers’ Compensation program. Premiums are based on individual
employer’s reported payroll hours and insurance rates based on each employer’s risk
classification and past experience. The premium is paid by employer and employee
contributions.
NOTE 16 – SUBSEQUENT EVENTS
On February 15th, 2005, the City exercised its option to purchase the Auburn Justice Center, per
the terms of the lease dated November 24, 2003, and purchased the premises for the stated price
of $10,350,000. For the year ended December 31, 2004, the Justice Center had been accounted
for as a capital lease.
81
CITY OF AUBURN: 2004 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 17 – RESTATEMENTS AND PRIOR PERIOD ADJUSTMENTS
The City of Auburn fully implemented the infrastructure requirements of GASB 34 in 2004,
resulting in the restatement of beginning net assets of governmental activities. In addition, there
was an error in the 2003 CAFR regarding the City’s net pension obligation that was corrected in
2004, resulting in a prior-period adjustment. Finally, accounts receivable in the storm water fund
that were applicable to prior years were written-off in 2004, and resulted in a prior period
adjustment.
The amounts restated are as follows:
GOVERNMENTALBUSINESS-TYPE
ACTIVITIESACTIVITIES
Beginning net assets--governmental funds90,213,654$ -$
Beginning net assets--business-type activities- 136,145,572
Add:
Capital assets129,775,322 -
Net pension obligation170,460
Less:
Write off of prior-year storm water fund charges- (223,386)
Revised beginning net assets220,159,436$ 135,922,186$
82
CITY OF AUBURN: 2004 CAFR REQUIRED SUPPLEMENTAL INFORMATION
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2004
VARIANCE WITH
FINAL BUDGET
ORIGINALFINALACTUALPOSITIVE
BUDGETBUDGETRESULTS(NEGATIVE)
REVENUES:
TAXES:
PROPERTY12,400,000$ 12,675,000$ 12,680,361$ 5,361$
RETAIL SALES & USE13,475,000 13,475,000 15,429,527 1,954,527
INTERFUND UTILITY1,580,400 1,580,400 1,714,102 133,702
UTILITY4,250,100 4,540,100 5,012,010 471,910
EXCISE 932,500 932,500 1,084,917 152,417
LICENSES AND PERMITS940,000 940,000 2,248,576 1,308,576
INTERGOVERNMENTAL1,798,400 2,101,600 2,205,983 104,383
CHARGES FOR SERVICES1,673,000 1,673,000 2,211,571 538,571
FINES AND FORFEITURES760,800 760,800 845,721 84,921
INVESTMENT EARNINGS- - 318,222 318,222
MISCELLANEOUS760,000 792,500 535,184 (257,316)
TOTAL REVENUES38,570,200 39,470,900 44,286,174 4,815,274
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT7,496,200 8,326,200 5,472,630 2,853,570
SECURITY OF PERSONS AND PROPERTY26,355,000 27,505,700 25,725,943 1,779,757
PHYSICAL ENVIRONMENT2,645,300 2,861,300 2,304,248 557,052
TRANSPORTATION2,275,500 2,288,500 2,150,847 137,653
ECONOMIC ENVIRONMENT1,504,000 2,241,300 2,404,483 (163,183)
HEALTH AND HUMAN SERVICES571,800 600,800 490,190 110,610
CULTURE AND RECREATION4,877,300 5,145,300 4,684,936 460,364
DEBT SERVICE- - 113,078 (113,078)
TOTAL EXPENDITURES45,725,100 48,969,100 43,346,355 5,622,745
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES(7,154,900) (9,498,200) 939,819 10,438,019
OTHER FINANCING SOURCES (USES):
SALE OF FIXED ASSETS- - 119,053 119,053
TRANSFERS IN760,000 1,943,300 1,980,883 37,583
TRANSFERS OUT(811,000) (834,000) (834,000) -
TOTAL OTHER FINANCING SOURCES AND USES(51,000) 1,109,300 1,265,936 156,636
NET CHANGE IN FUND BALANCES(7,205,900) (8,388,900) 2,205,755 10,594,655
FUND BALANCES - BEGINNING13,913,300 18,496,495 18,496,495 -
FUND BALANCES - ENDING6,707,400$ 10,107,595$ 20,702,250$ 10,594,655$
83
CITY OF AUBURN: 2004 CAFR REQUIRED SUPPLEMENTAL INFORMATION
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET FUND
FOR THE YEAR ENDED DECEMBER 31, 2004
VARIANCE WITH
FINAL BUDGET
ORIGINALFINALACTUALPOSITIVE
BUDGETBUDGETRESULTS(NEGATIVE)
TAXES:
INTERGOVERNMENTAL3,403,000$ 6,055,000$ 1,415,606$ (4,639,394)$
CHARGES FOR SERVICES80,000 80,000 21,981 (58,019)
MISCELLANEOUS15,000 1,413,000 1,470,736 57,736
TOTAL REVENUES3,498,000 7,548,000 2,908,323 (4,639,677)
CURRENT:
TRANSPORTATION6,132,000 11,142,500 3,001,497 8,141,003
TOTAL EXPENDITURES6,132,000 11,142,500 3,001,497 8,141,003
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES(2,634,000) (3,594,500) (93,174) 3,501,326
TRANSFERS IN994,000 1,127,000 771,500 (355,500)
TRANSFERS OUT- (110,000) (110,000) -
TOTAL OTHER FINANCING SOURCES AND USES994,000 1,017,000 661,500 (355,500)
NET CHANGE IN FUND BALANCES(1,640,000) (2,577,500) 568,326 3,145,826
FUND BALANCES - BEGINNING1,839,071 3,518,265 3,518,265 -
FUND BALANCES - ENDING199,071$ 940,765$ 4,086,591$ 3,145,826$
84
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON-MAJOR GOVERNMENTAL FUNDS
THE CITY HAS FOUR TYPES OF NON-MAJOR GOVERNMENTAL FUNDS:
Special Revenue Funds
Special revenue funds account for the proceeds of specific revenue sources and
are segregated into individual funds to ensure that expenditures are made
exclusively for qualified purposes. Special revenue funds are accounted for on a
modified accrual basis. Annual budgets are adopted with appropriations lapsing at
year-end.
Debt Service Funds
Debt service funds account for payments of principal and interest on general
obligation and special assessment long-term debt.
Capital Project Funds
Capital project funds account for the City of Auburn's financial resources used for the
acquisition or construction of major non-proprietary capital facilities.
Permanent Funds
Permanent funds are used to report resources that are legally restricted to the extent
that only earnings, and not principal, may be used for purposes that support City
programs that are for the benefit of the City or its citizens.
85
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENT FUNDS
DECEMBER 31, 2004
TOTALTOTAL TOTALTOTALTOTAL
NONMAJORNONMAJORNONMAJORNONMAJORNONMAJOR
SPECIAL REVENUEDEBT SERVICECAPITAL PROJPERMANENTGOVERNMENTAL
FUNDSFUNDSFUNDSFUNDSFUNDS
ASSETS:
CASH AND CASH EQUIVALENTS4,640,069$ 159,346$ 76,149$ 312,569$ 5,188,133$
INVESTMENTS1,988,750 - - 1,021,178 3,009,928
RECEIVABLES:
TAXES 4- - - 4
SPECIAL ASSESSMENTS- 1,189,111 - - 1,189,111
DUE FROM OTHER GOVERNMENTAL UNITS183,344 - - - 183,344
TOTAL ASSETS6,812,163$ 1,348,461$ 76,149$ 1,333,747$ 9,570,520$
LIABILITIES AND FUND BALANCES:
CURRENT PAYABLES178,218$ 304$ -$ -$ 178,522$
INTERFUND PAYABLE84,000 - - - 84,000
DUE TO OTHER GOVERNMENTAL UNITS17,760 - - - 17,760
DEFERRED REVENUE6,707 1,189,115 - - 1,195,822
TOTAL LIABILITIES286,685 1,189,419 - - 1,476,104
FUND BALANCES:
RESERVED FOR:
DEBT SERVICE- 159,042 - - 159,042
ENDOWMENT- - - 1,111,727 1,111,727
UNRESERVED
DESIGNATED FOR MITIGATION1,361,296 - - - 1,361,296
UNDESIGNATED5,164,182 - 76,149 222,020 5,462,351
TOTAL FUND BALANCES6,525,478 159,042 76,149 1,333,747 8,094,416
TOTAL LIABILITIES AND FUND BALANCES6,812,163$ 1,348,461$ 76,149$ 1,333,747$ 9,570,520$
86
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENT FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2004
TOTAL TOTAL TOTAL TOTAL TOTAL
NONMAJOR NONMAJOR NONMAJOR NONMAJOR NONMAJOR
SPECIAL REVENUEDEBT SERVICECAPITAL PROJECTSPERMANENTGOVERNMENTAL
REVENUES:
TAXES:
EXCISE55,521$ -$ -$ -$ 55,521$
OTHER38,284 - - - 38,284
INTERGOVERNMENTAL1,075,912 - - - 1,075,912
CHARGES FOR SERVICES1,092,939 - 21,387 45,300 1,159,626
SPECIAL ASSESSMENTS- 127,976 - - 127,976
INVESTMENT EARNINGS- - - 18,220 18,220
MISCELLANEOUS222,429 31,504 943 - 254,876
TOTAL REVENUES2,485,085 159,480 22,330 63,520 2,730,415
EXPENDITURES:
CURRENT:
SECURITY OF PERSONS & PROPERTY144,930 - - - 144,930
ECONOMIC ENVIRONMENT392,419 - - - 392,419
CULTURAL AND RECREATION121,281 - - - 121,281
HEALTH & HUMAN SERVICES107,233 - - - 107,233
DEBT SERVICE
PRINCIPAL- 279,550 - - 279,550
INTEREST- 171,667 - - 171,667
CAPITAL OUTLAY- - 10,400 - 10,400
- 1,227,480
TOTAL EXPENDITURES765,863 451,217 10,400
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES1,719,222 (291,737) 11,930 63,520 1,502,935
OTHER FINANCING SOURCES (USES):
TRANSFERS IN155,058 413,983 - - 569,041
TRANSFERS OUT(1,607,383) (29,983) - (30,000) (1,667,366)
TOTAL OTHER FINANCING SOURCES (USES)(1,452,325) 384,000 - (30,000) (1,098,325)
NET CHANGE IN FUND BALANCES266,897 92,263 11,930 33,520 404,610
FUND BALANCES - BEGINNING6,258,581 66,779 64,219 1,300,227 7,689,806
FUND BALANCES - ENDING6,525,478$ 159,042$ 76,149$ 1,333,747$ 8,094,416$
87
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
88
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON-MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special revenue funds account for the proceeds of specific revenue sources
and are segregated into individual funds to ensure that expenditures are
made exclusively for qualified purposes. Special revenue funds are
accounted for on a modified accrual basis. Annual budgets are adopted with
appropriations lapsing at year-end.
The City has 11 non-major special revenue funds.
The City Street Fund
- This fund is required by state law to account for
dedicated state-shared revenue which is transferred to the general fund for
street maintenance and operations.
Hotel/Motel Tax Fund
- This fund was created to account for the hotel/motel
taxes levied to support City tourist promotion.
Drug Forfeiture Fund
– Money seized and forfeited from drug activity is
deposited in this fund to be used exclusively for drug investigation and
enforcement.
Local Law Enforcement Block Grant
– Accounts for police overtime relating
to community oriented policing.
The Housing and Community Development Fund
- Accounts for projects
associated with the Community Development Block Grant program.
The Recreational Trails Fund
- Created for the purpose of trail development.
This is a tax-supported fund.
The Business Improvement Area Fund
- Accounts for special assessments
on downtown merchants for ongoing services and for improvements made to
the downtown area.
The Cumulative Reserve Fund
- Created for the purpose of revenue
stabilization for future operations.
1986 Parks and Street Improvements
– This accounts for the remainder of
delinquent taxes to be collected on a voter approved bond issue, which was
used to construct the Game Farm Park, the Isaac Evans Park, and to widen,
overlay and construct various streets in the City. All outstanding bonds in this
issue have been retired.
Mitigation Fees
– Accounts for the receipt of contracted mitigation fees for
streets and fire service.
Special Parks and Recreation
-- Accounts for funds that are donated to the
City for specific parks and recreation uses.
89
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2004
Page 1 of 2
HOTEL/LOCALHOUSING
MOTELDRUGLAWCOMMUNITY
TAXFORFEITUREENFORCEMENTDEVELOPMENT
ASSETS:
CASH AND CASH EQUIVALENTS27,822$ 164,924$ 6,328$ 3,590$
INVESTMENTS- - - -
DUE FROM OTHER GOVERNMENTAL UNITS- - - 183,344
TOTAL ASSETS27,822$ 164,924$ 6,328$ 186,934$
LIABILITIES AND FUND BALANCES:
CURRENT PAYABLES13,745$ 5,032$ -$ 79,797$
INTERFUND PAYABLE- - - 84,000
DUE TO OTHER GOVERNMENTAL UNITS- 17,760 - -
DEFERRED REVENUE- - - 6,707
TOTAL LIABILITIES13,745 22,792 - 170,504
FUND BALANCES:
UNRESERVED
DESIGNATED FOR MITIGATION- - - -
UNDESIGNATED14,077 142,132 6,328 16,430
TOTAL FUND BALANCES14,077 142,132 6,328 16,430
TOTAL LIABILITIES AND FUND BALANCES27,822$ 164,924$ 6,328$ 186,934$
90
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Page 2 of 2
TOTAL
BUSINESSSPECIALNONMAJOR
RECREATIONIMPROVEMENTCUMULATIVEMITIGATIONPARKS ANDSPECIAL REVENUE
TRAILSAREARESERVEFEESRECREATIONFUNDS
$ 47,54715,802$ 2,398,769$ 1,929,895$ 45,392$ 4,640,069$
-- 1,988,750 - - 1,988,750
-- - - - 183,344
$ 47,54715,802$ 4,387,519$ 1,929,895$ 45,392$ 6,812,163$
$ 16,183-$ -$ 63,250$ 211$ 178,218$
-- - - - 84,000
-- - - - 17,760
-- - - - 6,707
16,183- - 63,250 211 286,685
-- - 1,361,296 - 1,361,296
31,36415,802 4,387,519 505,349 45,181 5,164,182
31,36415,802 4,387,519 1,866,645 45,181 6,525,478
$ 47,54715,802$ 4,387,519$ 1,929,895$ 45,392$ 6,812,163$
91
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2004
Page 1 of 2
HOTEL/LOCAL LAWHOUSING
CITYMOTELDRUGENFORCEMENTCOMMUNITY
STREETTAXFORFEITUREGRANTDEVELOPMENT
REVENUES:
TAXES:
EXCISE-$ 55,521$ -$ -$ -$
OTHER- - - - -
INTERGOVERNMENTAL636,466 - - 15,926 421,726
CHARGES FOR SERVICES- - - - -
MISCELLANEOUS641 522 102,405 101 12,000
TOTAL REVENUES637,107 56,043 102,405 16,027 433,726
EXPENDITURES:
CURRENT:
SECURITY OF PERSONS & PROPERTY- - 109,201 35,729 -
ECONOMIC ENVIRONMENT- 97,877 - - 211,719
CULTURAL AND RECREATION- - - - 102,774
HEALTH & HUMAN SERVICES- - - - 107,233
TOTAL EXPENDITURES- 97,877 109,201 35,729 421,726
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES637,107 (41,834) (6,796) (19,702) 12,000
OTHER FINANCING SOURCES (USES):
TRANSFERS IN150,558 - - 4,500 -
TRANSFERS OUT(787,665) - - - -
TOTAL OTHER FINANCING SOURCES (USES)(637,107) - - 4,500 -
(41,834) (6,796) (15,202) 12,000
NET CHANGE IN FUND BALANCES-
FUND BALANCES - BEGINNING- 55,911 148,928 21,530 4,430
FUND BALANCES - ENDING-$ 14,077$ 142,132$ 6,328$ 16,430$
92
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Page 2 of 2
TOTAL
BUSINESS1986 PARKSSPECIALNONMAJOR
RECREATIONIMPROVEMENTCUMULATIVEAND STREETSMITIGATIONPARKS ANDSPECIAL REVENUE
RESERVEIMPROVEMENTFEESRECREATION
TRAILSAREAFUNDS
$ --$ -$ -$ -$ -$ 55,521$
38,284- - - - - 38,284
-1,794 - - - - 1,075,912
-- - - 1,092,939 - 1,092,939
847190 52,348 19 30,010 23,346 222,429
39,1311,984 52,348 19 1,122,949 23,346 2,485,085
-- - - - - 144,930
82,823- - - - - 392,419
-- - 5,629 - 12,878 121,281
-- - - - - 107,233
82,823- - 5,629 - 12,878 765,863
(43,692)1,984 52,348 (5,610) 1,122,949 10,468 1,719,222
-- - - - - 155,058
-- - (218) (819,500) - (1,607,383)
-- - (218) (819,500) - (1,452,325)
(43,692)1,984 52,348 (5,828) 303,449 10,468 266,897
75,05613,818 4,335,171 5,828 1,563,196 34,713 6,258,581
$ 31,36415,802$ 4,387,519$ -$ 1,866,645$ 45,181$ 6,525,478$
93
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
CITY STREET SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2004
VARIANCE WITH
FINAL BUDGET
ORIGINALFINALACTUALPOSITIVE
BUDGETBUDGETRESULTS(NEGATIVE)
REVENUES:
INTERGOVERNMENTAL600,000$ 600,000$ 636,466$ 36,466$
MISCELLANEOUS -- 641 641
TOTAL REVENUES600,000 600,000 637,107 37,107
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES600,000 600,000 637,107 37,107
OTHER FINANCING SOURCES (USES):
TRANSFERS IN150,000 150,000 150,558 558
TRANSFERS OUT(750,000) (750,000) (787,665) (37,665)
TOTAL OTHER FINANCING SOURCES (USES)(600,000) (600,000) (637,107) (37,107)
NET CHANGE IN FUND BALANCES- - - -
FUND BALANCES - BEGINNING- - - -
FUND BALANCES - ENDING-$ -$ -$ -$
94
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOTEL/MOTEL TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2004
VARIANCE WITH
FINAL BUDGET
ORIGINALFINALACTUALPOSITIVE
BUDGETBUDGETRESULTS(NEGATIVE)
REVENUES:
TAXES:
EXCISE$ 45,00045,000$ 55,521$ 10,521$
MISCELLANEOUS -- 522 522
TOTAL REVENUES45,000 45,000 56,043 11,043
EXPENDITURES:
CURRENT:
ECONOMIC ENVIRONMENT60,000 97,900 97,877 23
TOTAL EXPENDITURES60,000 97,900 97,877 23
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES(15,000) (52,900) (41,834) 11,066
NET CHANGE IN FUND BALANCES(15,000) (52,900) (41,834) 11,066
FUND BALANCES - BEGINNING21,479 55,911 55,911 -
FUND BALANCES - ENDING6,479$ 3,011$ 14,077$ 11,066$
95
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DRUG FORFEITURE SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2004
VARIANCE WITH
FINAL BUDGET
ORIGINALFINALACTUALPOSITIVE
BUDGETBUDGETRESULTS(NEGATIVE)
REVENUES:
MISCELLANEOUS50,600$ 50,600$ 102,405$ 51,805$
TOTAL REVENUES50,600 50,600 102,405 51,805
EXPENDITURES:
CURRENT:
SECURITY OF PERSONS & PROPERTY65,100 115,100 109,201 5,899
TOTAL EXPENDITURES65,100 115,100 109,201 5,899
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES(14,500) (64,500) (6,796) 57,704
NET CHANGE IN FUND BALANCES(14,500) (64,500) (6,796) 57,704
FUND BALANCES - BEGINNING20,198 148,928 148,928 -
FUND BALANCES - ENDING5,698$ 84,428$ 142,132$ 57,704$
96
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
VARIANCE WITH
FINAL BUDGET
ORIGINALFINALACTUALPOSITIVE
BUDGETBUDGETRESULTS(NEGATIVE)
REVENUES:
INTERGOVERNMENTAL45,000$ 45,000$ 15,926$ (29,074)$
MISCELLANEOUS1,000 1,000 101 (899)
TOTAL REVENUES46,000 46,000 16,027 (29,973)
EXPENDITURES:
CURRENT:
SECURITY OF PERSONS & PROPERTY50,000 50,000 35,729 14,271
TOTAL EXPENDITURES50,000 50,000 35,729 14,271
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES(4,000) (4,000) (19,702) (15,702)
OTHER FINANCING SOURCES (USES):
TRANSFERS IN4,500 4,500 4,500 -
TOTAL OTHER FINANCING SOURCES (USES)4,500 4,500 4,500 -
NET CHANGE IN FUND BALANCES500 500 (15,202) (15,702)
FUND BALANCES - BEGINNING1,769 21,530 21,530 -
FUND BALANCES - ENDING2,269$ 22,030$ 6,328$ (15,702)$
97
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOUSING & COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2004
VARIANCE WITH
FINAL BUDGET
ORIGINALFINALACTUALPOSITIVE
BUDGETBUDGETRESULTS(NEGATIVE)
REVENUES:
INTERGOVERNMENTAL483,000$ 483,000$ 421,726$ (61,274)$
MISCELLANEOUS 12,000- 12,000 -
TOTAL REVENUES483,000 495,000 433,726 (61,274)
EXPENDITURES:
CURRENT:
ECONOMIC ENVIRONMENT483,000 495,000 211,719 283,281
CULTURAL AND RECREATION- - 102,774 (102,774)
HEALTH & HUMAN SERVICES- - 107,233 (107,233)
TOTAL EXPENDITURES483,000 495,000 421,726 73,274
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES- - 12,000 12,000
NET CHANGE IN FUND BALANCES- - 12,000 12,000
FUND BALANCES - BEGINNING5,931 4,430 4,430 -
FUND BALANCES - ENDING5,931$ 4,430$ 16,430$ 12,000$
98
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
RECREATION TRAILS SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2004
VARIANCE WITH
FINAL BUDGET
ORIGINALFINALACTUALPOSITIVE
BUDGETBUDGETRESULTS(NEGATIVE)
REVENUES:
INTERGOVERNMENTAL1,400$ 1,400$ 1,794$ 394$
MISCELLANEOUS200 200 190 (10)
TOTAL REVENUES1,600 1,600 1,984 384
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES1,600 1,600 1,984 384
NET CHANGE IN FUND BALANCES1,600 1,600 1,984 384
FUND BALANCES - BEGINNING14,262 13,818 13,818 -
FUND BALANCES - ENDING15,862$ 15,418$ 15,802$ 384$
99
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
BUSINESS IMPROVEMENT AREA SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2004
VARIANCE WITH
FINAL BUDGET
ORIGINALFINALACTUALPOSITIVE
BUDGETBUDGETRESULTS(NEGATIVE)
REVENUES:
TAXES:
OTHER$ 51,00051,000$ 38,284$ (12,716)$
MISCELLANEOUS2,000 2,000 847 (1,153)
TOTAL REVENUES53,000 53,000 39,131 (13,869)
EXPENDITURES:
CURRENT:
ECONOMIC ENVIRONMENT91,700 91,700 82,823 8,877
TOTAL EXPENDITURES91,700 91,700 82,823 8,877
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES(38,700) (38,700) (43,692) (4,992)
NET CHANGE IN FUND BALANCES(38,700) (38,700) (43,692) (4,992)
FUND BALANCES - BEGINNING66,104 75,056 75,056 -
FUND BALANCES - ENDING27,404$ 36,356$ 31,364$ (4,992)$
100
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
CUMULATIVE RESERVE SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2004
101
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
1986 PARKS AND STREETS SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2004
VARIANCE WITH
FINAL BUDGET
ORIGINALFINALACTUALPOSITIVE
BUDGETBUDGETRESULTS(NEGATIVE)
REVENUES:
MISCELLANEOUS200$ 200$ 19$ (181)$
TOTAL REVENUES200 200 19 (181)
EXPENDITURES:
CURRENT:
CULTURAL AND RECREATION5,629 5,629 5,629 -
TOTAL EXPENDITURES5,629 5,629 5,629 -
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES(5,429) (5,429) (5,610) (181)
OTHER FINANCING SOURCES (USES):
TRANSFERS OUT -- (218) (218)
TOTAL OTHER FINANCING SOURCES (USES)- - (218) (218)
NET CHANGE IN FUND BALANCES(5,429) (5,429) (5,828) (399)
FUND BALANCES - BEGINNING5,429 5,828 5,828 -
FUND BALANCES - ENDING-$ 399$ -$ (399)$
102
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MITIGATION SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2004
VARIANCE WITH
FINAL BUDGET
ORIGINALFINALACTUALPOSITIVE
BUDGETBUDGETRESULTS(NEGATIVE)
REVENUES:
CHARGES FOR SERVICES349,000$ 349,000$ 1,092,939$ 743,939$
MISCELLANEOUS6,000 6,000 30,010 24,010
TOTAL REVENUES355,000 355,000 1,122,949 767,949
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES355,000 355,000 1,122,949 767,949
OTHER FINANCING SOURCES (USES):
TRANSFERS IN50,000 50,000 - (50,000)
TRANSFERS OUT(250,000) (975,000) (819,500) 155,500
TOTAL OTHER FINANCING SOURCES (USES)(200,000) (925,000) (819,500) 105,500
NET CHANGE IN FUND BALANCES155,000 (570,000) 303,449 873,449
FUND BALANCES - BEGINNING1,090,618 1,563,196 1,563,196 -
FUND BALANCES - ENDING1,245,618$ 993,196$ 1,866,645$ 873,449$
103
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
SPECIAL PARKS AND RECREATION SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2004
VARIANCE WITH
FINAL BUDGET
ORIGINALFINALACTUALPOSITIVE
BUDGETBUDGETRESULTS(NEGATIVE)
REVENUES:
MISCELLANEOUS10,000$ 10,000$ 23,346$ 13,346$
TOTAL REVENUES10,000 10,000 23,346 13,346
EXPENDITURES:
CURRENT:
CULTURAL AND RECREATION26,500 26,500 12,878 13,622
TOTAL EXPENDITURES26,500 26,500 12,878 13,622
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES(16,500) (16,500) 10,468 26,968
NET CHANGE IN FUND BALANCES(16,500) (16,500) 10,468 26,968
FUND BALANCES - BEGINNING22,390 34,713 34,713 -
FUND BALANCES - ENDING5,890$ 18,213$ 45,181$ 26,968$
104
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON-MAJOR GOVERNMENTAL FUNDS
Debt Service Funds
Debt service funds account for payments of principal and interest on general
obligation and special assessment long-term debt. The City of Auburn has
one outstanding general obligation issue, and two special assessment funds.
The 1998 General Obligation Library Bonds
- Accounts for debt service on
a Council-approved bond issue to finance, in conjunction with King County, the
construction of a new library in the City.
The L.I.D. Guarantee Fund
- This fund provides financial security for out-
standing L.I.D. bonds and special assessment debt.
Special Assessment Debt Fund
- Accounts for the special assessment
collections and debt service payments for all local improvement districts
located within the City.
105
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING BALANCE SHEET
DEBT SERVICE FUNDS
DECEMBER 31, 2004
TOTAL
1998 GONONMAJOR
LIBRARYLIDSPECIALDEBT SERVICE
BOND DEBTGUARANTEEASSESSMENTSFUNDS
ASSETS:
CASH AND CASH EQUIVALENTS7,248$ 109,023$ 43,075$ 159,346$
RECEIVABLES:
TAXES 4- - 4
SPECIAL ASSESSMENTS- - 1,189,111 1,189,111
TOTAL ASSETS7,248$ 109,027$ 1,232,186$ 1,348,461$
LIABILITIES AND FUND BALANCES:
CURRENT PAYABLES304$ -$ -$ 304$
DEFERRED REVENUE- 4 1,189,111 1,189,115
TOTAL LIABILITIES304 4 1,189,111 1,189,419
FUND BALANCES:
RESERVED FOR:
DEBT SERVICE6,944 - 43,075 50,019
LID GUARANTEE- 109,023 - 109,023
UNRESERVED
TOTAL FUND BALANCES6,944 109,023 43,075 159,042
TOTAL LIABILITIES AND FUND BALANCES7,248$ 109,027$ 1,232,186$ 1,348,461$
106
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2004
1998 G.O.
LIBRARYL I DSPECIAL
BOND DEBTGUARANTEEASSESSMENTSTOTAL
REVENUES:
TAXES:
SPECIAL ASSESSMENTS -$ -$ 127,976$ 127,976$
MISCELLANEOUS1,910 1,562 28,032 31,504
TOTAL REVENUES1,910 1,562 156,008 159,480
EXPENDITURES:
DEBT SERVICE
PRINCIPAL160,000 - 119,550 279,550
INTEREST146,744 194 24,729 171,667
TOTAL EXPENDITURES306,744 194 144,279 451,217
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES(304,834) 1,368 11,729 (291,737)
OTHER FINANCING SOURCES (USES):
TRANSFERS IN306,500 89,807 17,676 413,983
TRANSFERS OUT- (27,676) (2,307) (29,983)
TOTAL OTHER FINANCING SOURCES (USES) 306,500 62,131 15,369 384,000
NET CHANGE IN FUND BALANCES1,666 63,499 27,098 92,263
FUND BALANCES - BEGINNING 5,278 45,524 15,977 66,779
FUND BALANCES - ENDING6,944$ 109,023$ 43,075$ 159,042$
107
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON-MAJOR GOVERNMENTAL FUNDS
Capital Project Funds
Capital projects funds account for the City of Auburn's financial resources
used for the acquisition or construction of major non-proprietary capital
facilities. Auburn has one non-major capital project fund.
The Municipal Park Construction Fund
- Accounts for park related
construction activity and includes funding from a portion of field rental income
and adult athletic team fees.
108
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
BALANCE SHEET
CAPITAL PROJECT FUND
DECEMBER 31, 2004
MUNICIPAL
PARK
CONSTRUCTION
ASSETS:
CASH AND CASH EQUIVALENTS76,149$
TOTAL ASSETS76,149$
UNRESERVED
UNDESIGNATED76,149$
TOTAL FUND BALANCES76,149
TOTAL LIABILITIES AND FUND BALANCES76,149$
109
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31, 2004
MUNICIPAL
PARK
CONSTRUCTION
REVENUES:
CHARGES FOR SERVICES21,387$
MISCELLANEOUS 943
TOTAL REVENUES 22,330
EXPENDITURES:
CAPITAL OUTLAY 10,400
TOTAL EXPENDITURES10,400
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES11,930
NET CHANGE IN FUND BALANCES11,930
FUND BALANCES - BEGINNING 64,219
FUND BALANCES - ENDING76,149$
110
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON-MAJOR GOVERNMENTAL FUNDS
Permanent Funds
Permanent funds are used to report resources that are legally restricted to the
extent that only earnings, and not principal, may be used for purposes that
support City programs that are for the benefit of the City or its citizens. Auburn
has one permanent fund.
The Cemetery Endowed Care Fund
- Accounts non-expendable investments
held by the City's trustee. The interest income from investments is available for
use by the cemetery fund for capital enhancement and maintenance.
111
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CEMETERY
ENDOWED
CARE
ASSETS:
CASH AND CASH EQUIVALENTS
NON-EXPENDABLE TRUST312,569$
INVESTMENTS1,021,178
TOTAL ASSETS1,333,747$
FUND BALANCES:
RESERVED FOR:
ENDOWMENT1,111,727$
UNRESERVED
UNDESIGNATED222,020
TOTAL FUND BALANCES1,333,747
TOTAL LIABILITIES AND FUND BALANCES1,333,747$
112
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
PERMANENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2004
CEMETERY
ENDOWED
CARE
REVENUES:
INCREASE TO ENDOWMENT FROM LOT SALES45,300$
INVESTMENT EARNINGS18,220
TOTAL REVENUES63,520
EXCESS OF REVENUES OVER EXPENDITURES 63,520
OTHER FINANCING SOURCES (USES):
TRANSFERS OUT(30,000)
TOTAL OTHER FINANCING SOURCES (USES) (30,000)
NET CHANGE IN FUND BALANCE33,520
FUND BALANCE - BEGINNING 1,300,227
FUND BALANCE - ENDING1,333,747$
113
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON-MAJOR PROPRIETARY FUNDS
Enterprise Funds
The City's enterprise funds are used to account for operations that are
financed and operated in a manner similar to private business operations. The
goods and services these funds provide to the general public are primarily
financed by service charges. Enterprise funds are self-supporting and use the
accrual method of accounting. Auburn has four non-major enterprise funds.
The Airport Fund
- Provides accounting of the activities of the Auburn
Municipal Airport. Sources of income for the fund are leases, rentals, fuel
charges, investment interest, and grant funding as available.
The Cemetery Fund
- Accounts for Mountain View Cemetery's operations.
The Golf Course Fund
- Accounts for services, maintenance, and operations
associated with the Auburn Municipal Golf Course.
The Commercial Retail Fund
– Accounts for revenues and expenses related
to City-owned or leased property that is rented to commercial tenants.
114
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
DECEMBER 31, 2004
TOTAL
NONMAJOR
GOLFCOMMERCIALPROPRIETARY
AIRPORTCEMETERYCOURSERETAILFUNDS
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS329,633$ 450,685$ 42,533$ 140,582$ 963,433$
CUSTOMER ACCOUNTS12,981 - - 3,818 16,799
DUE FROM OTHER GOVERNMENTAL UNITS35,939 - - - 35,939
INVENTORIES 6,843170 - - 7,013
TOTAL CURRENT ASSETS378,723 457,528 42,533 144,400 1,023,184
NONCURRENT RESTRICTED ASSETS:
RESTRICTED CASH, CASH EQUIVALENTS
AND INVESTMENTS54,125 - 82,952 3,267 140,344
TOTAL RESTRICTED ASSETS54,125 - 82,952 3,267 140,344
CAPITAL ASSETS:
LAND 36,6413,653,343 2,229,636 - 5,919,620
BUILDINGS AND EQUIPMENT2,500,686 416,748 1,389,470 1,737,399 6,044,303
IMPROVEMENTS OTHER THAN BUILDINGS5,169,090 1,082,094 2,256,357 221,562 8,729,103
CONSTRUCTION IN PROGRESS- - - 131,174 131,174
LESS: ACCUMULATED DEPRECIATION(3,188,135) (781,635) (1,360,982) (114,695) (5,445,447)
TOTAL CAPITAL ASSETS (NET OF A/D)8,134,984 753,848 4,514,481 1,975,440 15,378,753
OTHER NONCURRENT ASSETS
LONG-TERM CONTRACTS AND NOTES- 39,316 - - 39,316
- 30,104
DEFERRED CHARGES30,104 - -
TOTAL OTHER NONCURRENT ASSETS30,104 39,316 - - 69,420
TOTAL ASSETS8,597,936 1,250,692 4,639,966 2,123,107 16,611,701
LIABILITIES:
CURRENT LIABILITIES:
CURRENT PAYABLES4,609 31,584 35,371 97,745 169,309
CUSTOMER DEPOSITS- - - 3,267 3,267
COMPENSATED ABSENCES925 8,512 15,339 - 24,776
PAYABLE FROM RESTRICTED ASSETS:
GENERAL OBLIGATION BONDS40,000 - - - 40,000
DEPOSITS53,925 - - - 53,925
TOTAL CURRENT LIABILITIES99,459 40,096 50,710 101,012 291,277
NONCURRENT LIABILITIES PAYABLE FROM
RESTRICTED ASSETS:
LONG-TERM BONDS PAYABLE:
GENERAL OBLIGATION BONDS1,500,000 - - - 1,500,000
TOTAL LIABILITIES PAYABLE
FROM RESTRICTED ASSETS1,500,000 - - - 1,500,000
NONCURRENT LIABILITIES:
DEFERRED REVENUE- 39,315 - - 39,315
EMPLOYEE LEAVE BENEFITS772 7,100 12,794 - 20,666
TOTAL NONCURRENT LIABILITIES772 46,415 12,794 - 59,981
TOTAL LIABILITIES1,600,231 86,511 63,504 101,012 1,851,258
NET ASSETS:
1,975,440 13,838,753
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT6,594,984 753,848 4,514,481
RESTRICTED FOR:
CONSTRUCTION -- 82,952 - 82,952
UNRESTRICTED402,721 410,333 (20,971) 46,655 838,738
TOTAL NET ASSETS6,997,705$ 1,164,181$ 4,576,462$ 2,022,095$ 14,760,443$
115
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
TOTAL
NONMAJOR
ENTERPRISE
GOLFCOMMERCIAL
AIRPORTCEMETERYCOURSERETAILFUNDS
OPERATING REVENUES:
CHARGES FOR SERVICES541,680$ 632,968$ 955,767$ -$ 2,130,415$
INTEREST- 3,276 - - 3,276
OTHER OPERATING REVENUE- - 8,932 58,156 67,088
TOTAL OPERATING REVENUES541,680 636,244 964,699 58,156 2,200,779
OPERATING EXPENSES:
OPERATIONS & MAINTENANCE15,411 468,138 727,598 20,061 1,231,208
ADMINISTRATION338,738 157,964 53,217 94,448 644,367
DEPRECIATION/AMORTIZATION256,025 79,264 139,827 94,003 569,119
OTHER OPERATING EXPENSES433 8,158 52,468 - 61,059
TOTAL OPERATING EXPENSES610,607 713,524 973,110 208,512 2,505,753
OPERATING INCOME (LOSS)(68,927) (77,280) (8,411) (150,356) (304,974)
NON-OPERATING REVENUE (EXPENSE):
INTEREST REVENUE5,156 5,742 3,017 2,014 15,929
OTHER NON-OPERATING REVENUES778,829 2 - - 778,831
GAIN (LOSS) ON SALE OF CAPITAL ASSETS- 2,421 11,500 - 13,921
INTEREST EXPENSE(91,723) - - - (91,723)
TOTAL NON-OPERATING REVENUE ( EXPENSE)692,262 8,165 14,517 2,014 716,958
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS623,335 (69,115) 6,106 (148,342) 411,984
TRANSFERS IN- 30,000 - - 30,000
CHANGE IN NET ASSETS
(39,115)623,335 6,106 (148,342) 441,984
TOTAL NET ASSETS BEGINNING OF YEAR6,374,370 1,203,296 4,570,356 2,170,437 14,318,459
TOTAL NET ASSETS END OF YEAR6,997,705$ 1,164,181$ 4,576,462$ 2,022,095$ 14,760,443$
116
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004
Page 1 of 2
GOLFCOMMERCIAL
AIRPORTCEMETERYCOURSERETAILTOTALS
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM USERS593,964$ 636,298$ 964,699$ 55,576$ 2,250,537$
CASH PAID TO SUPPLIERS(372,639) (184,531) (355,617) (143,603) (1,056,390)
CASH PAID FOR TAXES- (8,159) (52,468) - (60,627)
CASH PAID FOR INVENTORY- 888 - - 888
CASH PAID TO EMPLOYEES(19,399) (401,401) (430,595) - (851,395)
OTHER CASH RECEIVED (PAID)- 2 - - 2
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES201,926 43,097 126,019 (88,027) 283,015
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
OPERATING TRANSFERS IN- 30,000 - - 30,000
NET CASH PROVIDED (USED) BY NON-
CAPITAL FINANCING ACTIVITIES- 30,000 - - 30,000
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PROCEEDS FROM SALE OF EQUIPMENT- 2,421 11,500 - 13,921
PURCHASE OF CAPITAL ASSETS(806,255) (23,948) (298,346) (90,364) (1,218,913)
CAPITAL GRANT815,666 - - - 815,666
PRINCIPAL PAYMENT ON DEBT(35,000) - - - (35,000)
INTEREST PAYMENT ON DEBT(89,694) - - - (89,694)
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES(115,283) (21,527) (286,846) (90,364) (514,020)
CASH FLOW FROM INVESTING ACTIVITIES:
INTEREST RECEIVED5,157 5,742 3,017 2,014 15,930
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES5,157 5,742 3,017 2,014 15,930
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS91,800 57,312 (157,810) (176,377) (185,075)
CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR291,958 393,373 283,295 320,226 1,288,852
CASH AND CASH EQUIVALENTS-END OF YEA$ 450,685383,758$ 125,485$ 143,849$ 1,103,777$
R
CASH AT END OF YEAR CONSISTS OF:
OPERATING CASH329,633$ 450,685$ 42,533$ 140,582$ 963,433$
RESTRICTED CASH54,125 - 82,952 3,267 140,344
TOTAL CASH383,758$ 450,685$ 125,485$ 143,849$ 1,103,777$
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004
Page 2 of 2
GOLFCOMMERCIAL
AIRPORTCEMETERYCOURSERETAILTOTALS
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
OPERATING INCOME (LOSS)(68,926)$ (77,279)$ (8,411)$ (150,356)$ (304,972)$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION256,025 79,264 139,827 94,003 569,119
WRITE-OFF ASSETS LESS THAN $5,000- 12,414 - - 12,414
ASSET (INCREASES) DECREASES :
ACCOUNTS RECEIVABLE43,882 53 - (672) 43,263
INVENTORY14,594 888 - - 15,482
LIABILITY (INCREASES) DECREASES :
ACCOUNTS & VOUCHERS PAYABLE(52,523) 24,955 (4,067) (29,094) (60,729)
DEPOSITS PAYABLE8,402 - - (1,908) 6,494
WAGES & BENEFITS PAYABLE747 - - - 747
COMPENSATED ABSENCES PAYABLE(275) 2,802 (1,330) - 1,197
TOTAL ADJUSTMENTS270,852 120,376 134,430 62,329 587,987
-- - -
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES201,926$ 43,097$ 126,019$ (88,027)$ 283,015$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
CAPITAL ASSETS ACQUIRED BY CONTRIBUTED CAPITAL-$ -$ -$ -$ -$
INCREASE (DECREASE) IN FAIR VALUE OF INVESTMENT- - - - -
TOTAL NON CASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES-$ -$ -$ -$ -$
NON-MAJOR PROPRIETARY FUNDS
Internal Service Funds
The City of Auburn's internal service funds are used to account for the
financing of goods and services provided by one department of operation to
other departments on a cost reimbursement basis. Internal service funds are
self-supporting and use the accrual method of accounting. Auburn has two
internal service funds.
The Insurance Fund
- Provides a source of funds to pay unemployment
claims and property and casualty claims which fall below deductible levels.
The Equipment Rental Fund
- Accounts for the costs of purchasing,
maintaining, and operating Auburn's fleet of vehicles and related equipment.
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENTS OF NET ASSETS
INTERNAL SERVICE FUNDS
DECEMBER 31, 2004
EQUIPMENT
INSURANCERENTALTOTAL
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS2,693,180$ 3,574,422$ 6,267,602$
INVESTMENTS995,313 995,313
OTHER RECEIVABLES- 7,116 7,116
INVENTORIES- 77,218 77,218
TOTAL CURRENT ASSETS2,693,180 4,654,069 7,347,249
CAPITAL ASSETS:
BUILDINGS AND EQUIPMENT- 7,808,582 7,808,582
IMPROVEMENTS OTHER THAN BUILDINGS- 46,591 46,591
LESS: ACCUMULATED DEPRECIATION- (4,266,905) (4,266,905)
TOTAL CAPITAL ASSETS (NET OF A/D)- 3,588,268 3,588,268
TOTAL NONCURRENT ASSETS- 3,588,268 3,588,268
TOTAL ASSETS2,693,180 8,242,337 10,935,517
LIABILITIES:
CURRENT LIABILITIES:
CURRENT PAYABLES- 145,929 145,929
OTHER LIABILITIES PAYABLE- 64 64
EMPLOYEE LEAVE BENEFITS- 32,473 32,473
TOTAL CURRENT LIABILITIES- 178,466 178,466
NONCURRENT LIABILITIES:
EMPLOYEE LEAVE BENEFITS- 27,085 27,085
TOTAL NONCURRENT LIABILITIES- 27,085 27,085
TOTAL LIABILITIES- 205,551 205,551
NET ASSETS:
INVESTED IN CAPITAL ASSETS, NET OF
RELATED DEBT- 3,588,268 3,588,268
UNRESTRICTED2,693,180 4,448,518 7,141,698
TOTAL NET ASSETS2,693,180$ 8,036,786$ 10,729,966$
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2004
EQUIPMENT
INSURANCERENTALTOTAL
OPERATING REVENUES:
CHARGES FOR SERVICES-$ 2,681,204$ 2,681,204$
TOTAL OPERATING REVENUES- 2,681,204 2,681,204
OPERATING EXPENSES:
OPERATIONS & MAINTENANCE- 908,907 908,907
ADMINISTRATION52,804 522,605 575,409
DEPRECIATION/AMORTIZATION- 722,253 722,253
TOTAL OPERATING EXPENSES52,804 2,153,765 2,206,569
OPERATING INCOME (LOSS)(52,804) 527,439 474,635
NON-OPERATING REVENUE (EXPENSE):
INTEREST REVENUE29,983 52,426 82,409
OTHER NON-OPERATING REVENUES- 13,388 13,388
GAIN (LOSS) ON SALE OF CAPITAL ASSETS- 28,116 28,116
TOTAL NON-OPERATING REVENUE ( EXPENSE)29,983 93,930 123,913
INCOME (LOSS) BEFORE CONTRIBUTIONS(22,821) 621,369 598,548
CAPITAL CONTRIBUTIONS- 64,947 64,947
CHANGE IN NET ASSETS
686,316(22,821) 663,495
TOTAL NET ASSETS BEGINNING OF YEAR2,716,001 7,350,470 10,066,471
TOTAL NET ASSETS END OF YEAR2,693,180$ 8,036,786$ 10,729,966$
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004
Page 1 of 2
EQUIPMENT
INSURANCERENTALTOTAL
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM USERS-$ 2,681,204$ 2,681,204$
CASH PAID TO SUPPLIERS(3,308) (830,093) (833,401)
CASH PAID FOR TAXES(49,496) - (49,496)
CASH PAID FOR INVENTORY- (333,334) (333,334)
CASH PAID TO EMPLOYEES- (467,030) (467,030)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES(52,804) 1,050,747 997,943
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PROCEEDS FROM SALE OF EQUIPMENT- 85,693 85,693
PURCHASE OF CAPITAL ASSETS- (898,920) (898,920)
CONTRIBUTED CAPITAL- 64,947 64,947
PROCEEDS FROM INSURANCE SETTLEMENT- 13,388 13,388
INTEREST PAYMENT ON DEBT- (102) (102)
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES- (734,994) (734,994)
CASH FLOW FROM INVESTING ACTIVITIES:
PURCHASE OF INVESTMENTS29,983 (1,000,000) (970,017)
INTEREST RECEIVED- 49,997 49,997
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES29,983 (950,003) (920,020)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS(22,821) (634,250) (657,071)
CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR2,716,001 4,208,672 6,924,673
CASH AND CASH EQUIVALENTS-END OF YEAR2,693,180$ 3,574,422$ 6,267,602$
CASH AT END OF YEAR CONSISTS OF:
OPERATING CASH2,693,180$ 3,574,422$ 6,267,602$
TOTAL CASH2,693,180$ 3,574,422$ 6,267,602$
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004
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EQUIPMENT
INSURANCERENTALTOTAL
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
OPERATING INCOME (LOSS)(52,804)$ 527,439$ 474,635$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION- 722,253 722,253
ASSET (INCREASES) DECREASES :
INVENTORY- (15,472) (15,472)
LIABILITY (INCREASES) DECREASES :
ACCOUNTS & VOUCHERS PAYABLE- (193,583) (193,583)
COMPENSATED ABSENCES PAYABLE- 10,110 10,110
TOTAL ADJUSTMENTS- 523,308 523,308
-
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES(52,804)$ 1,050,747$ 997,943$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
CAPITAL ASSETS ACQUIRED BY CONTRIBUTED CAPITAL-$ 64,947 64,947
TOTAL NON CASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES-$ 64,947$ 64,947$
AGENCY FUNDS
The agency fundaccounts for monies over which the City is strictly a short-
term custodian. Agency funds typically involve only the receipt, temporary
investment, and remittance of fiduciary resources to individuals, private
organizations, or other governments.
CITY OF AUBURN, WASHINGTON
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
GENCY FUND
A
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004
BALANCE BALANCE
1/1/2004ADDITIONSDEDUCTIONS12/31/2004
ASSETS:
CASH AND CASH EQUIVALENTS479,277$ 2,679,579$ 2,588,953$ 569,903$
OTHER CURRENT ASSETS754 11,617 10,616 1,755
DUE FROM OTHER GOVERNMENTAL UNITS- 1,530 - 1,530
TOTAL ASSETS480,031$ 2,692,726$ 2,599,569$ 573,188$
LIABILITIES:
DUE TO OTHER GOVERNMENTAL UNITS480,031$ 2,692,726$ 2,599,569$ 573,188$
TOTAL LIABILITIES480,031$ 2,692,726$ 2,599,569$ 573,188$
CITY OF AUBURN: 2004 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
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