HomeMy WebLinkAbout3 - Combined Financial Statements
~ CITY OF AUBURN: 2001 CAFR GENERAL PURPOSE FINANCIAL STATEMENTS
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CITY OF AUBURN: 2001 CAFR GENERAL PURPOSE FINANCIAL STATEMENTS ,
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CITY OF AUBURN, WASHINGTON
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS ~
AS OF DECEMBER 31, 2001 AND2000
Page 1 of 4
"SPE ~ DEBT CA tfiA ~
.~''G~NEpAI : ~~EVE~NUE ~~'SER~(ICE~ p
E~ xS "
._.:~~M~r'::``.~£E~~~,~M~.~~.~,'~"._.~X"»~i._.:°:z.~s~~~?
ASSETS AND OTHER DEBITS: ~
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 16,154,833 $ 5,913,332 $1,931,157 $ 11,972,634
CASH AND CASH EQUIVALENTS - ~
NON-EXPENDABLE TRUST -
DEPOSITS WITH FISCAL AGENT - - 45,000 -
INVESTMENTS AT COST (NOTE 3) - - - -
RECEIVABCES: ~
TAXES 358,867 1,093 32 -
CUSTOMER ACCOUNTS 10,763 - - 5,000. -
SPECIAL ASSESSMENTS
CURRENT - - - - ~
DELINQUENT - 44,791 108,584 -
DEFERRED - - 725,265 -
ACCRUED INTEREST - 2,149 109,686 -
OTHER RECEIVABLES 1,176,861 - - - ~
INTERFUND RECEIVABLE (NOTE 5) 154,000 - - -
DUE FROM OTMER GOVERNMENTAL UNITS (NOTE 6) 1,215,988 2,685,492 - 268
INVENTORIES - - - -
ADVANCES TO OTHER FUNDS (NOTE 5) - - - - ~
RESTRICTED ASSETS:
CASH - - - -
LONG-TERM CONTRACTS AND NOTES RECEIVABLE - - - -
INVESTMENT IN JOINT VENTURE (NOTES 7,14) - - - - ~
FIXED ASSETS, NET OF DEPRECIATION (NOTE 7) - - - -
LONG-TERM INVESTMENTS (NOTE 3) - - - - "
DEFERRED CHARGES - - - -
AMTS AVAIL FOR DEBT SERVICE FUND - - - -
AMT TO BE PROVIDED FOR FUTURE YEAR - - - -
,~TQTAl.ASSETSsAND°OTNER DE$1TS~ ~ 9$~19:071312,-~$77, S
See accompanying notes to the financial statements. ~
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l CITY OF AUBURN: 2001 CAFR GENERAL PURPOSE FINANCIAL STATEMENTS
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~ Page 2 of 4
ri`~
R#~iOf'RtETAf3Y
~ ~ FUND TYPES " FIIND TYPES ACCOUNT GROUPS Y TOTALSa ~
(MEMORANQUM-0NLY)~~.~ _
ENTERPRISE SERIlICE ~ ~'~AGENCX ' ASSETS . DEBT ~ ~~20Di ' 20W` ?
$ 12,541,892 $ 6,850,059 $3,022,612 $ - $ - $ 58,386,519 $ 37,029,365
~
~ ~ - 1,185,832 - - 1,185,832 383,961
45,000 42,800
- - - - - - 16,304,843
~ - _ - - 359,992 275,227
5,248,188 36 5,263,987 4,964,639
- - - - - - 9,400
~ _ - - - - 153,375 133,253
725,265 926,730
- - - - - 111,835 121,118
7,029 - - - - 1,183,890 1,121,972
~ . 7,056 ~ _ - - 161,056 807,056
3,901,748 5,613,169
119,378 56,200 - - - 175,578 184,498
_ - - - - - 7,056
~ 10,527,412 - - - - 10,527,412 5,325,692
2,157,642 - - - - 2,157,642 2,315,995
- - - 3,787,975 - 3,787,975 1,687,476
~ 112,293,426 3,302,336 - 40,886,468 ~ 156,482,230 151,847,210
1,071,430 1,071,430 4,026,817
180,209 - - - - 180,209 195,156
~ - - - - 1,923,800 1,923,800 4,771 478
7,847,825 7,847,825 5,471,900
r
~ .$.143~082;232°~ $:10;208;595 $5~2Z9,911D~~ ..$44°;674;443 9;77];625>,, $255;63'L;600 ~r243;566811:~ "continued"
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CITY OF AUBURN:2001 CAFR GENERAL PURPOSE FINANCIAL STATEMENT$ 1
, CITY OF AUBURN, WASHINGTON ~
COMBINED B,ALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
AS OF DECEMBER 31, 2001 AND 2000
Page 3 of 4 j
,a - ~ea ~ r p ~3 y~2 ~ ~2P✓w a~, ~ ~ ~ , . t ' ,,y: ,~~'E ~"u~ ~
~~,GOVERNMENTAL~UND~T~If_~?ES~~,~°
,.~La~
Y~ E~ 1-1
5,~~~
"SPECIAL'~ D~EBT
~S~RVICE ~ ~'PRO;fECTS~,~
~ .
LIABILITIES, EQUITIES & OTHER CREDITS:
LIABILITIES: ~
CURRENT LIABIUTIES:
CURRENT PAYABLES $ 1.120,948 $ 497,052 $ 301 $ 28,745
CUSTOMER DEPOSITS 116,206 - - -
MATURED BONDS PAYABLE - - 45,000 - t~
MATURED INTEREST PAYABLE -
INTERFUND PAYABLE (NOTE 5) - 154,000 7,056 -
DUE TO OTHER GOVERNMENTAL UNITS - - - -
OTHER LIABILITIES PAYABLE 1,042 19,224 - - ~
PAYABLE FROM RESTRICTED ASSETS:
REVENUE BONDS (NOTE 10) - - - - -ACCRUEDINTEREST - - - -
DEPOSITS - - - - ~
LONG-TERM BONDS PAYABLE:
GENERAL OBLIGATION (NOTE 10) - - . - -
SPECIAL ASSESSMENTS (NOTE 10) - - - -
REVENUE BONDS (NOTE 10) - - - -
DEFERRED REVENUE 553,715 56,161 943,567 -
EMPLOYEE LEAVE BENEFITS (NOTE 10) - - - -
OTHER LONG TERM LIABILITIES - - -
DEFERRED CREDITS 74 - - ~
.
EQUITIES:
FUND EQUITY:
INVESTMENTS IN GENERAL FIXED ASSET (NOTE 7) - - - - ~
INVESTMENTS IN JOINT VENTURE (NOTES 7,14) - - - -
CONTRIBUTED CAPITAL - - - ' - ~
RETAINED EARNINGS:
RESERVED FOR DEBT SERVICE (NOTE 12) - - - -
RESERVED FOR CONSTRUCTION (NOTE 12) - - - -
RESERVED FOR GAIN/(LOSS) INVEST. - - - - ~
UNRESERVED - - -
FUND BALANCE:
RESERVED FOR PETTY CASH (NOTE 12) 6,025 - - -
RESERVED FOR CONTRIBUTIONS (NOTE 12) 12,718 - - -
RESERVED FOR DEBT SERVICE (NOTE 12) - - 142,564 - ~
RESERVED FOR ENDOWMENT (NOTE 12) - - - -
RESERVED FOR PENSION FUND (NOTE 12) - - - -
RESERVED FOR LID GUARANTEE (NOTE 12) - - 1,781,236 -
RESERVED FOR PARK TRUST (NOTE 12) - - - - ~
UNRESERVED:
DESIGNATED FOR RETIREMENTS 574,315 - - -
DESIGNATED FOR DEBT SERVICE - - - - ~
DESIGNATED FOR MITIGATION - 994,803 - -
UNDESIGNATED 16,686,269 6,925,617 - 11,949,157
~ "TOTAL~F~UN~~EGIUITY~ ~ q
' ~O~AC.~L-fABIUTIES~EG1U1T1ES~& OTHEEi CREDiT,S~.~~ 9;071;3t2?~„~$~8;&46,851~;;~$
See accompanymg notes to the financial statements. .
Page 28 ~
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I CITY OF AUBURN: 2001 CAFR GENERAL PURPOSE FINANCIAL STATEMENTS
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~ Page 4 of 4
~A, ,F
R'~~FllND TYPE3~~` ~~~~'~`~i FUNQ TYPES~ ACCOUNT GROIJPS TOTALS ~s~
4
~ : ° ~~~t ~INTERIU~L ~F b~'~~TRl1S~&~ ~ FiXED~ ~ ~ LONG-~TERM~. ~ ~(MEMORANGUM ONLY)~ 5
, ~,Y ~,ENTEfiPWSE ~~~~SERV~CE~~~~~H AGENCY~~~'~A~SSE7S~.~p£ n. ~DEBT~~. 2001 ~2000 3
~
$ 1,945,458 $ 127,910 $ 370,014 $ - $ - $ 4,090,428 $ 5,023,164
~ 134,725 - - - - 250,931 344,396
45,000 40,000
2,800
- - - - - 161,056 814,112
~ 14 - 14 63,000
361 144 20,771 221,870
920,000 - - - - 920,000 409,103
~ 663,142 - - - ~ 663,142 376,037
147,244 147,244 136,914
1,630,000 - - - 3,615;000 5,245,000 5,404,231
~ - - - ~ 738,904 738,904 1,013,904
10,190,000 10,190,000 11,581,666
26,742 54,848 - 1,635,033 1,775,234
398,387 36,082 948 - 2,962,721 3,398,138 3,341,135
~ 7,367,157 2,455,000 V 9,822,157 3138 368
108,383 108,457 151,074
~ - - - 40,886,468 - 40,886,468 41,734,810
- - - 3,787,975 - 3,787,975 1,687,476
~ 96,171,787 5,244,950 - - - 101,416,737 95,913,424
1,388,124 - - - - 1,388,124 1,329,158
903,834 - - - - 903,834 770,895
~ 2,222 - 2,222 _
21,084,652 4,799,509 _ _ _ 25,884,161 28,448,429
- - - - - 6,025 5,275
~ - - - - _ 12,718 12,703
142,564 88,421
- - 981,544 - - 981,544 898,866
~ - - 3,668,268 - - 3,668,268 3,631,870
1,781,236 1,718,670
62,449
~ - - - ~ - 574,315 574,315
330,718
994,803
- - 204,288 - - 35,765,331 32,522,324
~ t19=550,fi1R,:~~ ,674,443''~~~" ~ ~~2181'86325 . { ~2Qg,729;803„•
~ ~~$1„43;082.232~~~~$a1;U;208s595~,.,,~$5,278.910~~~44,674,4.43:~~$„9,T11,62'~`~;$2,55~632,SOOF;~~
1 Page 29
CITY OF AUBURN: 2001 CAFR GENERAL PURPOSE FINANCIAL STATEMENTS i
CITY OF AUBURN, WASHINGTON
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES ~
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2001 AND 2000
Page 1 of 2 ~
GOVERNMEIVTAL FUND 1`YPES
_
SPE
CIAL DEBT
GENERALF3EVENUE _ ~SEF~ViCE ~
REVENUE:
TAXES $ 32,812,677 $ 47,273 $ 6
LICENSES AND PERMITS 1,120,433 - - ~
INTERGOVERNMENTAL 2,059,441 15,085,567 -
CHARGES FOR SERVICES 1,502,199 785,971 -
FINES AND FORFEITS 623,427 - -
SPECIAL ASSESSMENTS - - 302,290 ~
MISCELLANEOUS 1,101,953 332,315 159,910
~"TOTAL~REVENUES 39 2201'30'~, . i:6 251 126 . ' 482 206`'
~.m..' :..:..a_~.~..~.~..~.~.~,._....~.:.s
EXPENDITURES:
CURRENT: '
GENERAL GOVERNMENT 4,480,244 - -
SECURITY OF PERSONS & PROPERTY 20,388,855 70,552 -
PHYSICAL ENVIRONMENT 2,386,732 - - ~
TRANSPORTATION 1,501,268 16,517,948 -
ECONOMICS ENVIRONMENT 904,536 609,950 -
MENTAL & PHYSICAL HEALTH 420,440 - -
CULTURE AND RECREATION 3,574,639 9,177 - ~
CAPITAL OUTLAY - - -
DEBT SERVICE:
PRINCIPAL RETIREMENT - - 415,000
INTEREST 8 FISCAL CHARGES - - 227,297 ~
TOTAGEXPENDITURES . ~ 33;65G;714 ; _ ;1:7`207fr27~
VTL~L~!-u ~
:
EXCESS REVENUE OVER EXPENDITURES 5,563,416 (956,501) (180,091)
OTHER FINANCING SOURCES (USES): ~
SALE OF GENERAL FIXED ASSETS - - -
PROCEEDS OF LONG-TERM DEBT - - - '
OPERATING TRANSFERS IN 797,783 1,852,454 311,800 ~
OPERATING TRANSFER (OUT) (4,267,254) (635,783) (15,000)
~ _TOTAI OTHER FIIVANCIING SOl1RCES/US£S_, _ m(3 469,4~;~ 4;216;671~ 296,800', ~
EXCESS OF REVENUE AND OTHER ~
SOURCES OVER EXPENDITURES 2,093,945 260,170 116,709
FUND BALANCE AT BEGINNING OF YEAR 15,288,352 7,570,662 1,807,091
PRIOR PERIOD ADJUSTMENT - - - ~
BEGINNING FUND BALANCE RESTATED 15,288,352 7,570,662 1,807,091
RESIDUAL EQUITY TRANSFER-IN - 89,588 3,366
RESIDUAL EQUITY TRANSFER-(OUT) (102,970) - (3,366)
k FUND$ALANGE AT: ENO QF,Y~EAR~, : . : $ 17,27:9;327' $ ;7q~920;420
See accompanying notes to the financial statements.
Page 30 ,
~ CITY OF AUBURN: 2001 CAFR GENERAL PURPOSE FINANCIAL STATEMENTS
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~ Page 2 of 2
Mia
~ CAPITAL~~~EXPEPtDABLE~ ~`~(MEM@RA~i~llM~ONL1~
~
$ 1,483,368 $ - $ 34,343,324 $ 31,977,330
- - - 1,120,433 1.183.990
~ 98,326 ~ 17,243,334 14,936,717
25,320 2,313,490 2,167,145
- - 623,427 576,838
~ - 302,290 73,519 -
585,968 2,180,146 2,424,130
~ - - 4,480,244 4,404,119
- - 20,459,407 19,174,210
- - 2,386,732 1,699,020
~ - - 18,019,216 13,195,958
1,514,486 2,013,764
- - 420,440 395,458
- - 3,583,816 3,381,673
~ 2,612,769 - 2,612.769 2,568,176
- - 415,000 250,000
,
~ - 227,297 224,494
'°544i~;9;407 47,306;$
(419,787) - 4,007,037 6,034,797
~ - - - 2.m
- - - 587,827
~ 3,308,000 6,270,037 7,774,022
.
(1,200,000) (6,118,037) (7,738,022)
~ 1,688,213 - 4,159,037 6,661,401
10,404,008 62,449 35,132,562 28,600,161
- (62,449) (62,449) -
~ 10,404,008 _ 35;070,113 28,600,161
92,954
(143,064) 249,400 129,000
~ . ~
t.$~ 949;1~7 1, Ql2x~{ 35.1'32;
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Page 31
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CITY OF AUBURN: 2001 CAFR GENERAL PURPOSE FINANCIAL STATEMENTS ~
CITY OF AUBURN, WASHINGTON ~
OOMBINED STATEMENT OF REVENUES, IXPENDITURES /WD
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL AIm SPEdAL REVENUE FUNDS ~
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2001
Page 1 of 2
FUND x ~ SPECIAL REVENUE FUN0.S ~ ~ ~
~ ~ . ~ ~ VARIANCE s r°~ ;UARIANCE
:FAVOHABCE ' FAVORABLE ~
BUMETt AFCTUAL .~r (UNFAVORABLE) BUDGET A6, A(:TUAI {UGVFAVORASLE)~
„
REVENUES:
TAXES: ~
GENERAL PROPERTY TAXES $10,676,000 $ 11,016,171 $ 340,171 $ - $ 92 $ 92
SALES AND USE TAXES 12,689,500 13,467,184 777,684 - - -
INTERFUNDTAXES 980,400 1,016,366 35,966 - - -
BUSINESS TAXES 4,588,400 6,143,060 1,554,660 - - - ~
EXCISETAXES 844,000 1,169,896 325,896
BUSINESS IMPROVEMENT AREA TAXES - - - 70,000 44,660 (25,340)
HOTEUMOTEL EXCISE TAX - - - - 2,521 2,521
PENALTIES AND INTEREST-'fAXES - - - 700 - (100) ~
LICENSES AND PERMITS 858,700 1,120,433 261,733 -
INTERGOVERNMENTAL 1,716,892 2,059,441 342,549 20,204,434 15,085.567 (5,118,867)
CHARGES FOR SERVICES 1,326,500 1,502,199 175,699 72,000 785,971 713,971
FINES AND FORFEITS 565,800 623,427 57,627 - - -
MISCELLANEOUS 692,800 1101953 409153 218200 332,315 114,115 ~
~ ~~~,~~TOTALMREVEPIUES ..,~°34.938.992,_;~y'~392'201~ ~ :;4,281~138 20~~734"~;~;~16,251;126 _„t:`~(?I,3#3;~:'.
IXPENDITURES:
GENERAL GOVERNMENT:
MAYOR AND COUNCIL 289,300 258279 31,021 - - - ~
PERSONNEL 1,588,743 1,420,590 168,153 - - -
FINANCE 3,019,100 1,923,006 1,096,094 - - - ~
CITY ATTORNEY 957,100 878,369 78,731 2,000 - 2,000
TOTAI. GENEf1AL GOVERNM1iIEfVT~ _ ~,~5.854,243,~ ~ a, ~;48~„;244~. _ , . i 373 9~ , ' . : . 2 000~ , ~ ; : . . ° ~+Ur 2,000 a
...........~~,.x~,~...u, ~.._._.~K ,~_a ~ . . _
SECURITY OF PERSONS AND PROPERTY:
POLICE 12,549,376 11,609,742 939,634 90,747 70,552 20,195
~
FI RE 7,874,000 7,517,310 356,690
-
PUBLIC WORKS 1,486,100 1,261,803 224,297
PHYSICAL ENVIRONMENT: ~
PUBLIC WORKS 2,580,400 2,386,732 193,668 - - -
.
TRANSPORTATION '
STREET 1,646,100 1,501,268 144,832 20,907,000 16 517,948 4,389,052
QTi1LTRAI~FSPOF~i'AT10N.,~~<~re~.~1646'1~
144 832 ~ 20 7
000 : ~ 16 517-948 4 389 052'~'
See accompanying notes to the financial statements ~
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Page 32 ~
~ CITY OF AUBURN: 2001 CAFR GENERAL PURPOSE FINANCIAL STATEMENTS
~
anr CF AUBUFK wasFUriGraN
~ QOIIIBINED STA7HYBW OF REVBNUES, DXPBNDilhIE.S AND
dHUNGES IN Fllm BAL.APICES - BLIDCET AWD ACtUAL
GHNEiAL.14ND SPECIAL REIIBNl1E F1ND6
FOR THE FlSCAL YEAR ENDED DECQuBER 31. 2001
~ Page 2 of 2
, i
~ ~-",6
A - 1 .
/4 ,b
-
v,aRLWCE va~~ f
a , .~avoar~ ;cAvoRABLE,..
4C[,l1AL " (4~VFAVORABLq r ~(~7~ AL"i'UAL ~ (tA~IFAVOiAB
RVF ~ A~ ~
.t w* ~ F v`a
Ay
~ EOONONCi 0NVIRONMENr:_
RAMnG s ooMnnJTv oEVELaRuErrr 1,M700 9o4.536 771,164 6e5.000 609,950 75.050
IAsa :ser-aoo..~a~~~~
~ PLAMIVG 8 OOMVUMIY DEVELOPNEM 48Z100 420,440 ~ 61,660 ~
.
~_TCJTi41:NE~lfALB;PFlY,51C~1L Y ~ 48'2~100`. ~ ~4~'•-._:a.~,~~~ .~~~..._......,..~.,~.wz<__
CULIUHE APID RECREAl10ht
~ PARtS AND RECFEATION 3,912100 3,574 639 337,461 70,900 9.177 61,723
".i::._..70,9(30,~~,~.',..~.,Q:in
_ IXCESSREIIQJUEONERDPBWtTURES (3,121,127) 5.5E3,416 8,684,543 (1,190,913) (956,501) 234,412
~ 07FEt RNANqNG SOIJRCES (lSESr
OPERAl1NGTRAIVSFERSIN 922,OOD 797,783 (24,217) 1,936,464 1,852,454 (83,000)
OPERA11NG TAANSFERS{0Ul) 4 267,254 4,267 254 (68D,000) 636.783 24,217
7~
~ DCCESS OF FEVEN.IES AND CJT}ER SCUFCES
OVER DXPF_NDI11JFiE.S AND C711-ER LSES (6,566,381) 20BCi,945 8,660,326 84,541 260,170 175,529
FIAm BALANCES AT BEGWNG OF YEAR 15,288,362 15.288,362 - 7,570,200 7,570,6fi2 462
~ PPoOR PEROD ALUUSTTrFMS - - - - - -
BEGINMNG F'Ulm BALANCE RESTA'TED 15,288,352 15~268,362 7,570,200 7,570,652 462
FESIDUALEGUUITYTRAIUSFERSW (OtlT) 052,5001 (102,970) 48,530 88,588 89,588
~ ~BA~LANf~~'SAT,O~OF~YEAR- .'$:;8.56a~i'1'l~ ..$,-Y7
.279.327 ~$~$708~ffiB $T864741...'~,$7,9~;4'd0 _ ~6;6/'9"3
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~ Page 33
CITY OF AUBURN: 2001 CAFR GENERAL PURPOSE FINANCIAL STATEMENTS t
~
CITY OF AUBURN, WASHINGTON
COMBINED STATEMENT OF REVENUES, EXPENSES, AND ~
CHANGES IN FUND EQUITY
ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2001 AND 2000
Fioucinav
~ PIaOPRIETARY FUND TYPES' pl1NO TYPE TOTALS
tNON Z,
EXPENUABL£~', (MEMQRAIdDUM ONL~Y),NI~
EN~RPRtSE SERVICE ~ TRUST
OPERATING REVENUES: '
CHARGES FOR SERVICE $ 28,567,212 $ 1.631.113 $ 39,432 $ 30,237,757 $ 29,182,216
INTEREST 3,384 147 - 3,531 9,855
~
OTHER OPERATING REVENUE 5,022 20,582 25,604 29,464
~ .a--,
r_ -TOTAI QPERATING'mREVENUES~~"u,;~.; 576,818< ~1,65i 842~~ ~ 39,432.~~ _ 30,266'892 ~28x221:5~36~
OPERATING EXPENSES:
OPERATIONS 8 MAINTENANCE 18,116,216 699,467 - 18,815,683 17,856,450
ADMINISTRATION 3,174,565 371,902 - 3,546,467 3,189,686 ~
TAXES 1.862,830 - - 7,862,830 1,793,248
DEPRECIATION/AMORTIZATION 2,822,403 698,672 - 3,521,075 3,289,235
OTHER OPERATING EXPENSES 705 705 391
3 T07ALOPEiiATING^iEXRENSES ~ ` ~ '
OPERATING INCOME (LOSS) 2,599,604 (118,904) 39,432 2,520,132 3,092,525 . ~
NON-OPERATING REVENUES (EXPENSES):
INTEREST REVENUE 1,040,789 259,646 65,221 1,365,656 1,590,346 ~
OTHER NON-OPERATING FEVENUE 162,355 - - 162,355 19,153
GAIN(LOSS) SALE OF FIXED ASSETS (32,592) 6,013 - (26,579) 66,693
INTEREST EXPENSE (1,005,963) (1.005,963) (743,700)
OTHER NON-OPERATING EXPENSES (1 313) (1.313) 900
,~,~,TOTAL_NON=RE1/ENUEIEXPEN$E - `1fi3 27fi:d 26fi 669 c x ~6B 22Y ~
OPERATING TRANSFERS
OPERATING TRANSFERS-IN - - • - 133,000
OPERATING TRANSFERS-(OUT) (152,000) (152,000) (169,000)
..w si ~
NET INCOME 2,610,880 746,755 104.653 2,862,288 3,988,117 _
RETAINED EARNINGS/FUND BALANCE
AT BEGINNING OF VEAR 25,894,228 4,652,755 1,081,179 31,628,162 27,793,718 ~
PRIOfi PERIOD ADJUSTMENTS (4,982,827) - (4,982,827) 3,327
BEGINNING RETAINED EARNINGS/
FUND BALANCE RESTATED 20.911.401 4,652,755 1,081,179 26,645,335 27,797,045
RESIDUAL EOUITY TRANSFER IN 3,947 3,947 305.000
~
RESIDUAL EOUITY TRANSFER (OUT) (147 396) (147 396) (462 000)
AETAIIVED
23 378°~80 ~t~tB5,832~;.,,,~;,,,~ 2936417d 31„,828,1~
CONTRIBUTED CAPITAL AT ~
BEGINNING OF YEAR 91,040,128 4,874,796 - 95,914,924 90,630,594
CAPITALGRANTS - - • - 187,405
OTHER FUNDS - 370,153 - 370,153 355,993
OTHER CONTRIBUTED CAPITAL(NET) 5,131,659 - 5,131,659 4,740,932
~ END~OF YEAR j 96 /71 787 5,244 948 101 418:738 95m~~14,82di~ ~
LGND:-EdU17.Y;AT END O~F;~ YEAR `$Yt9:550,9~8=- 10,0:44 458 1;]95 832 _ r~x$ .130.Z60"910„ ~$~'127 543 098~
See accompanying notes to the tinanclal statements.
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Page 34 ~
' CITY OF AUBURN: 2001 CAFR GENERAL PURPOSE FINANCIAL STATEMENTS
~ CITY OF AUBURN, WASHINGTON
COMBINED STATEMENT OF CASH FLOWS
~ ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUND
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2001 AND 2000
Page 1 of 2
~R; g~ PROPRIETARY~FUND TY~ES FIDUCiA~RY~FUPiD TYPES TOTAL ; _
t f
> 1 ~
NON
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(MEMQRANDU C~
M NILYj~
vs . pa
ERITEf,tPRISE~ SERVIGE ~ TRt1ST = ~ ~ 200'i~ 2000 ¢
CASH FLOWS FROM OPERATING ACTIVITIES:
~ CASH RECEIVED FROM USERS $ 28,573.980 $ 1,640,074 $ 39,432 $30,253,486 $ 29,184,130
CASH RECEIVED FROM USERS A/R (178.878) (178,878) (450,906)
CASH RECEIVED FROM DEFERRED REV - - - - 69,042
CASH PAID TO SUPPLIERS (16,548,716) (647,194) - (17,195,910) (17,157,992)
~ CASH PAID FOR TAXES (1,919,549) - - (1,919,549) (1,780,844)
CASH PAID FOR INVENTORY (69,137) (216,530) (285,667) (255,259)
CASH PAIDTO EMPLOYEES (4,563,311) (370,122) - (4,933.433) (4,510,515)
OTHER CASH RECEIVED PAID 21,891 11,768 - 33,659 34,603
~
Fl- 17-
CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES:
INTERFUND LOAN RECEIVABLE 7,056 - - 7,056 7,056
~ INTEREST ON LOAN RECEIVABLE 917 - - 917 -
INTEFUNO LOAN PAYABLE (3,180)
PRIOR PERIOD ADJUSTMENT - - - - 27,867
OPERATING GRANTS RECEIVED - - - - 10,862
~ ~NETCASN PROVID~ (PJS~~~Y N~ ~~~•z~ = g~~~,~~ : ~ x~ ~ t ~ ~^~x ~
CAPITAL FINAn1ClIV~~A~~CF~~~ ~ 7 S'13~ .b~~ ,"'a~`^.~.._,a~ '°~msr~.a~_~,T r . _ µ _a.a ~.~~.7 973 , .rz; .~2,~QSa
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PROCEEDS FROM SALE OF FIXED ASSETS 17,864 15,313 - 33,177 144,923
~ PURCHASE OF FIXED ASSETS (7,037,960) (426,242) - (7,464,202) (9,122,451)
CONTRIBUTED CAPITAL (750,610) 370,753 (380,457) 2,066,132
CAPITAL GRANT 137,493 - - 137,493 187,405
PRINCIPAL PAYMENT ON BONDS (1,054,833) - - (1,054,833) (840,000)
~ INTEREST PAID ON BONDS (771,150) - - (771,750) (755,157)
OPERATING TRANSFER - IN 3,947 3,947 230,000
RESIDUAL TRANSFER-0UTlCAPITAL (99,000) (99,000) (631,000)
DEBT PROCEEDS (LOAN) 6,972,025 - - 6,972,025 -
(,?,629,O(~ fJ 348),i
CASH FLOW FROM INVESTING CTiVITIES:
PROCEEDS FROM SALE
~ OF INVESTMENTS 5,003,440 1,000,000 700,000 6,703,440 7,798,130
PURCHASE OF INVESTMENTS (10,386,690)
INTEREST RECEIVED 935,230 259,646 62,439 1,257,315 1,545,282
FNET,~CASii PROV}DEt U.SE6 ~IN~~. 7 ~
~ g.~ e~~ ~~.N
INVESTIN4;ACTIattT~~,~ X ,.6.958 87,0 . ~ t-_b ,259;648" 1 :s~.:762.439, "(t.,q43,27.$)?
Z N
~ NE INCREASE (DECREASE) IN CASH AND ~
CASH EQUIVALENTS 8.680,699 1.636,866 801,871 11,119,436 (4,588,562)
CASH AND CASH EQUIVALENTS -
~ BEGINNING OF YEAR 14,388,607 5,213,193 383,961 19,985,761 24,574,323
~CiA$H.N0
~ENDOFYEAR ~ $23;06.9306>.'.$ 6.850;059 ~ ~1;185892.: , .$31105;197 : $.199857S1i~
CASH AT END OF YEAR CONSIST OF:
~ CASH AND CASH EQUIVALENTS 12,541 125 6,850,059 1,185 832 20 577,016 14 660,069
RESTRICTED CASH 10,528181 10,528.181 5325.692
~~~TALCASH. "~,~r~S~' ~$23:069306 ,.'•$.;6BbQ~059 ,~;,$;.,~~=i;a85:8~°„:' ; ~ $31,':iQ5;197 ,"e$'"1~` 9~.576f~
See accompanying notes to the financial statements. °continued"
~
~ Page 35
CITY OF AUBURN: 2001 CAFR GENERAL PURPOSE FINANCIAL STATEMENTS 1
~
CITY OF AUBURN, WASHINGTON
COMBINED STATEMENT OF CASH FLOWS ~
ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUND
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2001 AND 2000
Page 2 of 2 '
f~ x ,L . i. ..r 3 ' .S `
1 PftOPR FUND TYPES FIDUCIARY FUND~"fY~ES' zT0'FAL
a~.,s~''
t.,
~ ~ z~. ~ ~ INTERNAL ~ EXPENDABIE ~ ^ ~ (MEflAQRANQI>1M ~Nl.~)
RECONCILIATION OF NET OPERATING INCOME TO NET CASH ~
PROVIDED BY OPERATING ACTIVITIES:
OPERATINGINCOME,{LOSS~,u,~~:~~ 5j1:18904...m_?~ 39.482
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION 2.822,403 698.672 - 3,521,075 3,289,235 ~
CHANGES IN ASSETS
(INCREASES) DECREASES:
ACCOUNTS RECEIVABLE (178,878) - - (178,878) (453,485)
MISCELLANEOUS A/R - REVENUE (2,692) - - (2,692) 24,808 ~
MISCELLANEOUS A/R - GL - - - - 6205
INVENTORY (70,097) (223,346) - (293,443) (95,037)
PREPAID EXPENSE - - - - 2,801
CHANGES IN LIABILITIES ~
INCREASES (DECREASES):
ACCOUNTS PAYABLE (183.776) (4,148) (187,924) 176,830
VOUCHERS PAYABLE 357,453 62,399 - 419,852 (401,967)
DEPOSITS PAYABLE 5,963 - - 5,963 5,297 ~
COMPENSATED ABSENCES PAYABLE 32,845 3,323 - 36,168 (81,917)
A/P RELATED TO CAPITAL 616,067 - - 616,067 (349,059)
PRIOR PERIOD ADJUSTMENTS (682,609) - - (682,609) (24,540)
INVENTORY RELATED TO CAPfTAL - - - - (122,275)
DEFERRED CFlEDfTS (3) - (3) 62.833
~T~TOTAL USTMENTS 2~ 16 876 " 538 900 ~4 ~ 3,253,576 735
~a ~ ~ ~ NET CASM PROVIDED,(USEO} BY
~~OPERATiNG ACTlVITIES , 5.318280 ° _ _447-996b ' _ ; .,,_.39,432, _$.'~7Z3,708 $.5;132,259=:
SCHEDULE OF NONCASH INVESTING, ~
CAPITAL AND FINANCING ACTIVITIES
CONTRIBUTED CAPITAL $ 4,239.719 $ 188.653 $ - $ 4,428,372 $ 3,453.300 ~
See accompanying notes to the financial statements. ~
~
~
~
Page 36 ~
~ CITY OF AUBURN: 2001 CAFR GENERAL PURPOSE FINANCiAL STATEMENTS
~
~
~ CITY OF AUBURN, WASHINGTON
STATEMENT OF CHANGES IN NET PLAN ASSETS
FIREMAN'S PENSION FUND
~ FOR THE FISCAL YEARS ENDED DECEMBER 31, 2001 AND 2000
?g
' . ~~a~~,~,~`aar~' : ~ ~ a ~~I~~iy♦'~"da% e¢!,,~.,~., ~uRw
S'
(.,1e ~~.~.£v.`'°s?'in3e„~ e.~x~dS.`, ~Sb Y 'w`..d g3..S~%":.,_~;':7,~f~.
ADDITIONS
~ EMPLOYER CONTRIBUTIONS $ - $ -
OTFiER CONTRIBUTIONS:
FIRE INSURANCE PREMIUMS 37,281 31,721
INVESTMENT INCOME:
~ INTEREST 229,283 290,587
.
~ DEDUCTIONS
BENEFIT PAYMENTS 178,598 183,228
LONGTERM CARE PREMIUMS 38,341 33,663
~ ADMINISTRATIVE EXPENSES 13,227 16,092
T'OTALDEDUCTIONS~~~°:µ„~`~~~~°' ;230,166.~ fr{r 232;983~
NET INCREASE 36,398 89,325
~ FUND BALANCE RESERVED FOR EMPLOYEES'
PENSION.BENEFITS:
~ BEGINNING OF YEAR 3,631,870 3,542,545
See accompanying notes to the financial statements.
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CITY OF AUBURN: 2001 CAFR GENERAL PURPOSE FINANCIAL STATEMENTS I
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~ CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS
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City of Auburn
~ NOTES TO THE FINANCIAL STATEMENTS
December 31, 2001
~
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 40
~ A. REPORTING ENTITY 40
B. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND
BASIS OF PRESENTATION 40
~ C. BASIS OF ACCOUNTING 42
D. BUDGET AND BUDGETARY ACCOUNTING 43
E. ASSETS, LIABILITIES, AND FUND EQUITY .....................................................................44
1. DEPOSITS AND INVESTMENTS 44
2. RECEIVABLES .............................................................................................................44
3. INTERFUND RECEIVABLES AND PAYABLES 45
4. AMOUNTS DUE FROM OTHER GOVERNMENTAL UNITS .......................................45
~ 5. INVENTORIES ..............................................................................................................45
6. RESTRICTED ASSETS 45
7. INTERFUND TRANSACTIONS 45
8. FIXED ASSETS 45
~ 9. DEFERRED CREDITS/CHARGES 46
10. COMPENSATED ABSENCES 46
11. DEFERRED REVENUES 46
12. RESERVATIONS OF FUND BALANCE/RETAINED EARNINGS ...............................46
~ F. REVENUES, EXPENDITURES AND EXPENSES 46
G. MEMORANDUM ONLY-TOTAL COLUMNS 47
NOTE 2- STEINARDSHIP, COMPLIANCE AND ACCOUNTABILITY 47
~ NOTE 3- DEPOSITS AND INVESTMENTS 48
NOTE 4- PROPERTY TAXES 49
NOTE 5- INTERFUND ACTIVITY 50
~ NOTE 6- DUE FROM OTHER GOVERNMENTAL UNITS 51
NOTE.7 - FIXED ASSETS AND DEPRECIATION 52
NOTE 8- RECORDED VACATION, SICK LEAVE, AND POST-EMPLOYMENT BENEFITS......... 52
NOTE 9- PENSION PLANS 53
~ NOTE 10 - LONG-TERM DEBT 58
NOTE 11 - CONTRIBUTED CAPITAL 61
NOTE 12 - RESERVATIONS OF FUND EQUITY 61
NOTE 13 - ENTERPRISE FUND SEGMENT INFORMATION 62
~ NOTE 14 - JOINT VENTURE / RELATED PARTY 62
NOTE 15 - CONTINGENCIES AND LITIGATION 64
NOTE 16 - RISK MANAGEMENT 64 ~
~ NOTE 17- RESTATEMENTS AND PRIOR PERIOD ADJUSTMENTS ...........................................66
~
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~ Page 39
CITY OF AUBURN: 2001 GAFR NOTES TO THE FINANCIAL STATEMENTS '
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES '
The City of Aubum, 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. Auburn is administered by a full-time mayor and seven part-time council
members, all elected at large to fouc-year terms. The City provides a range ofi 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 and two
separate account groups, known as General Fixed Asset and General Long-Term Debt.
Based on the criteria of Governmental Accounting Standards Board (GASB) Statement No. ,
14, the Valley Communications Center is included in the accompanying financial statements
as a joint venture under the General Fixed Asset Account Group. (See Note 14). ~
B. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND BASIS OF PRESENTATION
The accounts of the City are organized on the basis of funds and account groups, 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, Iiabilities, fund equity, revenue, and
expenditures or expenses, as appropriate. The City resources are allocateci to, and
accounted for, in individual funds according to the purpose for which they are spent and how ~
they are controlled. The 4hree broad fund categories, seven generic fund types, and two
account groups 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 (expendifures 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 required to be accounted for in another
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.
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.
~
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~ CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENT_S
~ 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.
~ 2. PROPRIETARY FUND TYPES
~ Proprietary funds are accounted for on a cost of services or "capital maintenance"
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 retained earnings
~ 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.
Pursuant to Statement 20 of the Governmental Accounting Standards Board (GASB),
Accounting and Financial Reporting for Proprietary Funds and Other Govemmental
~ Entities That Use Proprietary Fund Accounting, the City has chosen to appty 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. Interna/ 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. FtDUCIARY FUND TYPES
Trust and Agency 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 an expendable trust, a non-expendable trust, a
pension trust, and two agency funds.
~ Each trust fund is classified for accounting measurement purposes either as a
governmental fund or a proprietary fund. Non-expendable trust and 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 Cemetery
Endowed Care Fund and the Fire Relief and Pension Fund are 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.
The Expendable Special Parks Trust Fund is accounted for on the modified accrual
basis in essentially the same manner as governmental funds.
~ Agency funds are custodial in nature (assets equal liabilities) and do not involve
measurement of results of operations. These include the City's Trust and Agency
Funds.
~
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~ Page 41
CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS ~
~
4. ACCOUNT GROUPS
Account Groups are used to establish accounting control over the City's general fixed ~
assets and.general long-term debt. The City uses the following account groups:
a. General Fixed Assets Account Group - This account group accounts for
~
alt fixed assets of the City other than those accounted for in proprietary
funds.
b. Genera/ Long-Term Debt- This account group accounts for all long-term ~
debt of the city, other than debt accounted for in proprietary funds,
including special assessment debt, as determined in GASB Statement
No. 6. ~
The City's financial statements include the financial position and results of operations of
all funds over which the City exercises budgetary control and all internal service and
enterprise operations, which the City manages. The financial statements also include the ~
assets and liabilities of all funds for which the City has a custodial or trust responsibility.
C. BASIS OF ACCOUNTING
Basis of accountin9 refers to when revenues and expenditures or expenses are ~
recognized in the accounts and reported in the financial statements.
The modified $ccrual basis of. accounting is followed in all Govemmental, Agency Funds, ~
and the Expendable Trust Fund of the City. Under the modified accrual basis of
accounting, revenues are recorded when susceptible to accrual; i.e., both measurable ~
and available. Available means collectible within the current period or soon enough
thereafter to pay current liabilities. Those specific major revenue sources accrued are.
Property Taxes - The portion of property taxes received in January for the prior year's ~
levy is recorded as revenue. The remaining balance is not normally expected to be
collected within 30-days after the current period and are, therefore, reported as deferred
revenue. ~
Sales Tax Revenues - Sales Tax collected by merchants, but not yet cequired to be
remitted to the taxing authority at the end of the fiscal year and taxes collected and held
by one government agency for another at year-end are recorded as revenue, in ~
accordance with GASB 22.
Grant Revenues - On cost reimbursement, grant revenue is recognized when the ~
expenditure is incurred, in accordance with GASB Statement 1.
Under the modified accrual basis, expenditures are recorded when the fund liability is
incurred, except for the unmatured interest and principal on general long-term debt, ~
which is recognized when due, and for vacation and sick pay which are recorded as
expenditures when liquidated from expendable available fund resources. Purchase of
fixed assets from Govemmental Funds is reported as expenditures during the year
incurred and the asset is capitalized in the General Fixed Assets Account Group. Long- ~
term liabilities, including vacation pay not currently due and payable, are accounted for in
the General Long-Term Debt Account Group, except those long-term liabilities accounted
for in the proprietary funds. ~
~
Page 42 ~
~ CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS
~ The accrual basis of accounting is followed in all Proprietary, Pension Trust and
Cemetery Endowed Care Funds. Under the accrual basis of accounting, revenues aXe
recognized when earned and expenses are recorded when incurred.
~ 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.
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 Pcinciples (GAAP). The CAFR included 6udgetary
, 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. Prior to November 3, 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 the means of financing them.
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 within the
first month of the following year. 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.
~
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~ Page 43
CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS ~
. _ ~
i - SUPPLEMENTAI APPROPRIATIONS i
f
! • Orlginal Finaq ;
; Bud.get . Revisians Budget
General Fund $ 45,809,000 $ 5,240,344 $ 51,049,344
Special Revenue Fund: ~
Street 660,000 - 660,000
Arteriai Street 34,986,800 (11,177,700) 23,809,100
Drug Forfeiture Fund 32,100 41,100 73,200
Local Law Enforcement Blk Grant 75,900 31,588 107,488 ~
Housing and Community -
Developm ent 570,700 31 ,1 00 601,800
Recreation Trails 15,700 3,500 19,200
Business ImprovementArea 171,200 28,400 199,600 ~
Cumulative Reserve 4,128,500 11,700 4,140,200
1986 Parks 8 Street Im provem ent 55,200 1,400 56,600
Mitigation Fees 134,900 268,300 403,200
Totel SpeciaJ Revenoe Fvhda 40,831,000 ('10;760,612) , 30,070,388 ~
1.Tots1 Bydgeted Funds $ 86,840,000 (5,52,0,268) . $ 81,11_9,732 i
E. ASSETS, LIABILITIES, AND FUND EGIUITY ~
1. DEPOSITS AND INVESTMENTS
It is the City's policy to invest all temporary cash surplus. At December 31, 2001, the '
City Treasurer was holding $69,315,770 in short-term residual investments of surplus
cash. This amount is classified on the balance sheet as cash and cash equivalents ~
in various funds. 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 ~
Govemment 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 a State investment pool, U.S. ,
Treasury and Agency securities, Bankers' Acceptances, and Repurchase
Agreements. The City purchases repurchase agreements only from institutions that
use authorized securities for collateral. The City of Aubum also has signed a"Master ~
Repurchase AgreemenY' 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 a ,
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 31.
2. RECEIVABLES
Taxes receivable consist of property taxes and related interest and penalties (See ~
Note 4). Accrued interest receivable consists of amounts eamed on investments,
notes, and contracts at the end of the year. ~
Customer accounts receivable consists 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. ~
Page 44 ~
~ CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIALSTATEMENTS
~
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.
~ Accrued inferest and dividend receivable consists of interest earned on investments
at the end of the year on all fund types.
~ Other receivables include utility taxes due from private organizations and customer
accounts receivable 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 consists 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.
~ 4. AMOUNTS DUE FROM OTHER GOVERNMENTAL UNITS
~ This account includes amounts due from other governments for grants, entitlements
and charges for services.
5. INVENTORIES '
~ Govemmental funds in the City use the purchase method whereby inventory items
are considered expenditures when purchased. They are not included in the balance
sheet of the Govemmental Funds because the amounts outstanding at year-end are
~ immaterial. Inventories in the Enterprise and Internal Service Funds are valued at
cost using the weighted average costing method.
~ 6. RESTRICTED ASSETS
The customer deposits and proceeds of revenue bonds issued by the City utilities are
restricted by applicable bond ordinances to pay bond debt and construction costs.
~ 7. INTERFUND TRANSACTIONS
During the course of normal operations, the City has numerous transactions between
~ City funds. Quasi-external transactions, 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.
Operating transfers between funds are included as "other financing sources or uses°
~ and residual equity transfers are reported as direct additions to or deductions from
fund balance/fund equity.
~ 8. FIXED ASSETS
Fixed assets are cecorded in the General Fixed Asset Account Group (GFAAG) are
accounted for at historical cost when known. When historical cost is not known,
assets are recorded. at estimated historical cost. Infrastructure, such as roads,
~ bridges and curbs, is considered public property and is not accounted for in the
GFAAG. Donated fixed assets are stated at their market value on the date donated.
~
~ Page 45
CITY OF AUBURN: 2001 CAFR . NOTESTO THE FINANCIAL STATEMENTS ~
Fixed assets of Enterprise and Intemal Service Funds are recorded at cost. The ~
fixed 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.
Fixed assets of Proprietary Funds are depreciated, whereas general fixed assets are ~
not, nor has interest been capitalized. Depreciation is calculated on the straight-line
method utilizing estimated lives as follows:
~.ec~ e z ~s t "~"P* Z'
Vehicles 2-15 years ~
Equipment 3-15 years
Buildings 20-50 years
Enterprise Plant 25-50 years
9. DEFERRED CREDITS/CHARGES ~
Deferred Credits includes the premium, discount and issuance costs of revenue ~
bonds that are amortized overthe life of the issue.
10. COMPENSATED ABSENCES
City ordinances and labor contracts with the City of Aubum call for the accumulation '
of vacation and sick leave. Upon termination of employment; employees with the
required length of service may receive cash payment for all accumulated vacation ~
leave up to a maximum of two years accumulation.
In accordance with GASB Statement No. 16, the City accrues vacation and sick leaye
pay. The accruals are made in each proprietary fund. For Governmental Funds, the ~
accruals are recorded in the General Long-term Debt Accounf Group since they are
not currently due and payable at year-end (i.e., they will not be paid from expendable
available financial resources). ~
11. DEFERRED REVENUES
This account includes amounts recognized as receivables, but not revenues, in ~
Governmental Funds because they are not available to pay current liabilities.
12. RESERVATIONS OF FUND BALANCE/RETAINED EARNINGS ~
A reserve is used to segregate a portion of fund balancelretained earnings, whieh -
cannot be appropriated for expenditures or is legally restricted for a specific fufure
use. These reserves are ident'rfied on the balance sheet of each fund type and in ~
Note 12.
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.
~
Page 46
~
' CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS
1 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
current.
1 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 refunded debt) are recognized as other financing sources, and the
amount remitted to the refunding trustee is recognized as an expenditure.
~ Proceeds from sale or loss of fixed 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 con'sidered not available until
~ colfected.
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.
' G. MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the General Purpose Financial Statements are captioned as "memorandum
~ only" because they do not represent consolidated financial information and are presented
only to facilitate financial analysis. The columns do not present information that reflects
financial position, results of operations or cash flows in accordance with generally accepted
~ accounting principles. Interfund eliminations have not been made in the aggregation of this
data.
' 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.
In 2001 the City established one new Special Revenue fund, the HoteUMotel Tax Fund.
~
~
~ Page 47
CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS '
NOTE 3- DEPOSITS AND INVESTMENTS ~
The Federal Deposit Insurance Commission (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. Accordingly, the
deposits covered by WPDPC are considered to be insured and classified risk Category 1. '
As required by State law, all investments of the City's funds are obligations of the U.S.
Government, Prime Bankers' Acceptances and the Washington State Pool. Pension and Non-
expendable Trust Funds are not subject to the preceding limitations. All temporary investments ~
are stated at cost. Other investments are shown on the balance sheet at fair value, as amended
by GASB 31. Investments that were not at par value (cost) as of Deeember 31, 2000 are
reported at amortized cost. The City holds several 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. See schedule on page 48.
During 2001, the City of Aubum had realized gains on sales of investments of $1,181. The net ~
increase in the fair value of investments being held for more than one year is $34,704 at year-
end. (Per GASB 31).
The City's investments are categorized to give an indication of the risk assumed at year-end. '
Category 1 inctudes investments that are insured, registered, or held by the City or its agent in
the City's name.
M~1
10URf 5
~ 0''
U.S. Govemment Securities $ 1,071,430 $ 1,071,430 $ 1,071,430
Total 1,071 430 1,071,430 1,071,430
~
Investment with State Pool 69,315 770 69,315,M 69,315,77b
Totallnvestments
i
SCHEDULE OF INVESTMENTS BY FUND CATEGORY AND INVESTMENT TYPE
AS OF DECEMBER 31 2001 ~
-3~liYtYa$
P~~
o,.F..,~~"~~-'e~`r..~v""~.b~.
Fiduciary Funds $ - $ 1,071,430 $ 1,071,430
Treasurer's Residual Funds 69,315 770 69,315,770 '
Total L~69;315,77_0 .07~1.;430~~;~~$~ ~Z0;387~;a7';99'
~
1
,
Page 48 ~
! CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS
,
NOTE 4 - PROPERTY TAXES
~ For 2001 the City's regular tax levy was $2.99 per $1,000 on a total 2000 assessed valuation of
$3,725,634;388 for a total regular levy of $11,253,988. 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.
1 2.50% With a vote of the people, indebtedness is for parks, or open space
deVelopment.
At December 31, 2001, the debt limits for the City were as follows:
~
ms`°`~
Nca~~`~'~a
' '~nr~no~
01,
AVote
Legal Limit $ 55,884,516 $ 93,140,860 $ 186,281,719
Qutstandmg Indebtedness 7,700,000 -
~ INa~r,gm A a ~1e~~ ~ ;281;9#
~ 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 Assessor at 100% of #air market value establishes assessed values. A revaluation of
all property is required every four 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. During the year, property tax revenues are
recognized when cash is received.
, 1. The Washington State Constitution limits the total regular property taxes to one-percent
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 one-percent limit.
, 2. Washington State law in RCW 84.55.010 limits the growth of regular property taxes to the
rate of' inflation or, with the proof ofi substantial need and a supermajority vote of council,
six-percent per year; after adjustment for new construction. If the assessed valuation
increases by more than six percent due to re-evaluation, the levy rate will be decreased.
~
~
Page 49
'
CITY OF AUBURN' 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS '
3. The CitY maY voluntarilY levY taxes below the le9al limit. ~
Special levies approved by the voters are not subject to the above limitations. I
Property taxes are recorded as receivable and offset by a deferred reyenue account when levied.
Since State law allows for sale of property for failure to pay taxes, no estimate of uncollectible '
taxes is made.
NOTE 5 - INTERFUND ACTIVITY
The tables below summarize interfund activity during the past year. The first table lists operating ~
transfers, the second table lists loan activity, and the third table lists residual equity transfers.
Operating transfers are legally authorized transfers of resources from a fund receiving revenue to ~
the fund through which resources are to be expended.
Govemmental Funds '
General Fund $ . 4,267,254 $ 797,783
Special Revenue Fund:
Street Fund 635,783 - ~
Arterial Street Fund - 1,842,000
Drug Forfeiture - 10,454
Debt Service Funds:
1998 Library G0 - 306,800 ~
LID #344 - 5,000
LID Guarantee 15,000 - "
Capital Projects Fund:
Park Gonstruction - 158,000 ~
Capital Improvement Projects 1,042,000 3,150,000
Library,Construction 158,000 -
Proprietary Funds:
Sewer 76,000 - '
Storm Drainage 76,000 -
~6;270;037Q -
~
Loans between funds are classified as interfund Ioans receivable and payable or as advances to ,
and from other funds on the combined balance sheet depending on the time period for which the
loan was made. Interfund loans do not affect total fund equity.
. _ . , ~
. 5 w s r . " ~ .,i~ ~ ~ w~' ^r^• ~ g _
~ .x ~n' ~rov'°3~~ A a#,
tnterfunciLoarts`
ax i~'~~ r ♦ ~~y/~~
DU8 FfOR1 ~ ~ ~ , -«us~,aa. , e~~♦~~ ~ ` °~r•r* ° ~ ~g
L.I.D. #344 Water Fund $ 14,112 $ - $ 7,056 $ 7,056
Artenal Street General Fund 800,000 3,760,000 4,406,000 154,000
p 1
Tot3l~Iritetft~ld~L~s~h s $4.~AO;000'~`066~"'~'.~~~€$
Page 50 ,
~ CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS
~ Residual equity and contribution transfers are classified as direct additions or subtractions to fund
equity.
~ ~ f,~ Resldual Equ~ty Transfers R~
P~ Funds~~~~~ ~ ~~r~" ~ Transfer Out ~ ~~=`~Transfer ln
Governmental Fund:
Ceneral Fund $ 152,500 $ 49,530
~ Arterial Street - 89,588
LID Guarantes - 3,366
LID #338 3,366 -
' Capital Projects Funds: -
LID #347 143,064
Proprietary Funds:
Water 121,396 -
~ Sewer 3,000 -
StoRn Drainage 3,000 3,947
;i Solid Waste 20,000 -
448;326,.. . ~
Residual Equity Transfers Recorded as Contributed Capital
Intemal Service:
Epuipment.Rental - 299,895
~'~~pj~^2~
~ ° - *i
~Tot~s~~unrls ~
v ~ ~
~
NOTE 6- DUE FROM OTHER GOVERNMENTAL UNITS
~ As of December 31, 2001, the City had receivables due from other governmental units as follows
Due from~oiher Govemme~tal
General Fund $ 1,215,988
~ Arterial Street Fund 2,440,052
Block Grant Fund 245,440
Capital Improvement Projects 268
♦E°5,~,:~~'"'4~YE~zEY;^~'~~'.~,^~4~~,,~,~,5 'taS A e'< AO .
~ ~'~'~'^tii
~Q~W
,
41tt~
~
,
~
~ • '
' Page 51
CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS ~
NOTE 7- FIXED ASSETS AND DEPRECIATION ~
Two fixed asset schedules are presented on the following page. The first presents a schedule of
changes in general fixed assets and the second summarizes the fixed asset and depreciation '
data for Enterprise and Internal Service Funds.
Schedule ot Changes iq Genera! Fized Assets y
~ ~Balance.
~DescripUon . 01/01%2001 Additions Redrement ~12/31/20Q1 , ~
Joint Venture $ 1,687,476 $ 2,100,499 $ - $ 3,787,975 ~
Land 9,324,624 - - 9,324,624
Building 7,580,541 44,269 4,882 7,619,928
Site 7,667,310 220,322 66,369 7,821,263
Streets 9,868,268 - - 9,868,268 ~
Equipment 7,294,067 396,995 1,438,677 6,252,385 ~
'TotalAssets $ 43;422:286 2;762,0W e 1509,52$. k$... .44,874,4~3
~
Proprietery Wnds RroPertY, Plarrt and Equipment
As of Deaember
~n{y"VVI~CJ/~~.~g y~~ 'y C ~ {S~' LBSSM ,'J F/.£~Ek~'t~~Y~.`i
;4 Yc{iCn ~~(pl IWC{IIIII~Ip~ r I~OI.l1DJCfJ~~
Furitls". , r Lend ~ Buii~gn ImprovemenYS Equf(imeM m Progress ` <•'Assets Deprec~sibn y2131%20fft ~
Departments: ~
Water $ 671,878 $ 1,519,576 $ 53,976,922 $ 1,137,110 $ 6,887,234 $ 64,192,720 $ (18,140,151) $ 46,052,569
Sewer 1,654,958 360,095 29,858,942 623,366 1,773,263 34,270,624 (9,156,120) 25,114,504
Storm Drainage 4,047,682 6,484 28,571,218 105,057 1,673,764 34,404,205 (6,491,376) 27,912,829
Solid Waste - 418,555 - 15,000 - 433,555 (85,576) 348,039 ~
Airport 3,629,496 2,199,154 4,306.023 78,143 100 10,212,916 (2,360,705) 7,852,211
Cemetery 36,641 168,490 909,891 404,767 9,791 1,529.580 (627,491) 902,089
Golf Course 2,229 635 598,776 1.773,123 537,237 5,138,771 (1,027,586) 4,111,185
Tota~ Ertter~rlse ' 1 e^..270;290 ' S~71 130 119,396 Y 15. 2 900 680 10 344,152 150182 3Tt f37 888 945)_. +-.-J a2„293'426 ~ ~
Intemal Service 268,720 27,262 6,221,920 6,517,902 (3,215,566) 3 302J336
i7ot ~,~~~"`'~$~12'27'Or '~'.5 9`,5{l~ $'1'194 381'- 9:122600...~,~10 1.52 ~~.t5~67U0 3~~`'b1~104511 A~5598762
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 made in each proprietary fund. For governmental funds, the accrual is recorded in the
General. Long-Term Debt Account Group, since it is not currently due and payable at year-end
(see 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, 65 retirees meet the eligibility
requirements. The City provides medical insurance and reimburses for 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
$387,801 were recognized for post-retirement health care. This represents a$3,853 increase
from the previous year. ~
i
Page 52 ~
~ CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIALSTATEMENTS
~
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 27, Accounting
for Pensions by State and Local Govemment Employers.
~ Public Employees' Retirement Systems (PERS) Plans 1 and 2
Plan Description
~ PERS is a cost-sharing multiple employer retirement system. Membership in the plan
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, college and university employees (not in national higher education
retirement programs); judges of district and municipal courts; non-certificated employees
of school districts; and employees of local governments. The- PERS System includes two
~ defined benefit pension plans. Participants who joined the system by September 30,
1977 are Plan 1 members. Those joining thereafter are enrolled in Plan 2. Retirement
benefits are financed from employee and employer contributions and investment
~ earnings. Retirement benefits in both Plan 1 and Plan 2 are vested after completion of
five years of eligible service. Retirement benefit provisions are established in state statue
and may be amended only be the state legislature.
~ Plan 1 members are eligible for retirement at any age after 30 years of service, or at age
60 with five years of service, or at the age of 55 with 25 years of service. The annual
pension is two percent of the average final compensation per year of service, capped at
~ 60 percent. The average final compensation is based on the greatest compensation
during any 24 eligible consecutive compensation months. If qualified, after reaching age
66, a cost-of-living allowance is granted based on years of service credit and is capped at
three percent annually.
~ Plan 2 members may retire at the age of 65 with five years of service, or at age 55 with
20 years of service, with an allowance of two percent per year of service of the average
~ final compensation. Plan 2 retirements prior to 65 are actuarially reduced. If retirement
age is at age 55 with 30 years of service, a 3 percent 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, based at three percent annually.
, - There are 1,177 participating employers in PERS Membership in PERS consisted of the
following at December 31, 2000:
~ Retirees and Beneficiaries Receiving Benefits 61,088
Terminated Plan Members Entitled to But Not Yet Receiving Benefits 17,314
Active Plan Members Vested 98,018
~ Active Plan Members Nonvested 54,243
Total ~
~
~ Page 53
CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS ~
u
Funding Policv ~
Each biennium, the Pension Funding Council adopts Plan 1 employer contribution rates
and Plan 2 employer and employee contribution rates. Employee contribution rates for ~
Plan 1 are established by statute at six percent and do not vary from year to yeac. The
employer and employee contribution rates for Plan 2 are set by the director of the
Department of Retirement Systems based on recommendations by the Office of the State
Actuary to continue to fully fund the plan. All employers are required to contribute at the ~
level established by state law. The methods used to determine the contribution
requirements are established under state statute in accordance with Chapter 41.40 and
41.45 RCW: ~
The required contribution rates expressed as a percentage of current year covered
payroll as of December 31, 2001 were:
-W~`'~
a ; PERS Plan I k PERS Plan II ~
Employer' 1.77% 1.77%
Employee 6.00% 0.68°/a
'The emploYer rates include the employer administrative expense fee currently set at 0.23%.
Both Auburn and the employees made the required contributions. The City's required
contributions for the years ended December 31 were: ~
9W ~ s ~ . .
&Ptan'll .
2001 $ 136,037 $ 501,516 ~
2000 177,818 581,304
1999 201,812 800,810
Law Enforcement Officers' and Fire Fighters' Retirement Systems (LEOFF) Plans 1 and 2 ~
Plan Description ~
LEOFF is a cost-sharing multiple-employer retirement system. Membership in #he
system includes all full-time; fully compensated, local law enforcement officers and fire
fighters. LEOFF is comprised primarily of nonstate employees. The LEOFF system
includes two defined benefit pension plans. Participants who joined the system 6y
September 30, 1977 are Plan 1 members. Those joining thereafter are enrolled in Plan
2. Retirement benefits are financed from employee and employer contributions,
investment earnings, and state contributions. Retirement benefits in both plan 1 and 2 ~
are vested after completion of five years of eligible service. Retirement benefit provisions
are established in state statute and may be amended only by the state legislature
Plan 1 members are eligible to retire with five years of service at age 50. The benefits ~
per year of service are as follows, with a cost-of-living allowance granted, capped at three
percent annually: ~
~
Page 54
~
~ CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS
u u°z Y d9 4
X~ Serv~ce Finai Avera e~~
20+ 2.0%
~ 10-20 1.5%
5-10 1.0%
~
Plan 2 members are eligible to retire at age 50 with 20 years of service, or at age 53 with
five years of service. Retirement benefits prior to age 53 are actuarially reduced 3
~J percent for each year that the benefit commences prior to age 53. The benefit is two ,
Percent of average salary per year of service. The average salary is based on the
highest consecutive,60 months. There is no cap on years of service credit and a cost-of-
~ living allowance is granted, capped at three percent annually.
There are 362 participating employers in LEOFF. Membership in LEOFF consisted of the
following at December 31, 2000:
~ Retirees and Beneficiaries Receiving Benefits 7,923
Terminated Plan Members Entitled to But Not Yet Receiving Benefits 279
~ Active Plan Members Vested 10,680
Active Plan Members Nonvested 3.952
Total 4
~ Funding Policy
~ Plan 1 employer and employee contribution rates are established by statute, anci the
state is responsible for the balance of the funding at rates set by the Pension Funding
Council to fully amortize the total costs of the plan. Starting on July 1, 2000, Plan 1
employers and employees will contribute zero percent as long as the plan remains fully
funded. Employer and employee rates for Plan 2 are set by the director of the
~ Department of Retirement Systems based on recommendations by the Office of the State
Actuary to continue to fully fund the plan. Plan 2 employers and employees are required
are required to contribute at the level required by state law. The methods used to
~determine the contribution rates are established under state statute in accordance with
Chapters 4126 and 41.45 RCW.
~ The required contribution rates expressed as a percentage of covered payroll, as of
December 31, 2001 were: ` ~~'LEOFF Pwlan 1~~'LEOFFa~Plan 11F
~ Employer* 0.23% 2.93%
Employee 0.00% 4.50%
~ 'The employer rates include the employer administrative expense fee currently set at 0.23%.
Both Auburn and the employees made the required contributions. The City's required
~ contributions forthe years ended December 31 were:
Page 55
~
CITY OF AUBURN: 2001 GAFR NOTES TO THE FINANCIAL STATEMENTS ~
~
~
LEOFF~PIan I , LEOFf Plan I ' ~
g
2001 $ 1,663 $ 868,323 ~
2000 44,113 866,412
1999 98,617 945,829
~
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
Chapter 41.18. This plan provided retirement and disability benefits, annual cost-of-liv.ing
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 fire fighters who retired prior
to March 1, 1970 and excess pension and healthcare benefits of LEOFF for covered fire ~
fighters who retired after March 1, 1970.
Under state law, the Firemen's Pension Plan is provided an allocation of 25% of all moneys ~
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, 2001 that no ~
future City contributions will be required beyond future revenues from state fire insurance
taxes and interest earnings.
Membership of the Fireman's Pension Plan consisted of 19 eligible, of which 18 are receiving ~
benefits.
SCHEDULE OF FUNDING PROGRESS
(rounded to thousands) ~
5''~~~*~.:
x~ r F~ ~,T~'P 'h~'a.,~~.°~`°. „y K .i. `a k^ z ~ a~ 4` t«✓a~ a ~~m 1~•4 xt'~`~-?'x 0'
AGtuanal~~~ ~ Aciuanal Va~ue ~~uabil~ies~~~~~" ~ ~~`Accrue~d ti ~fundatl~~~~~Covere~:~~Peroentage of
~ ~
„'3ValuaUon~Date.~'~,.~ofAssets~~~~`~~ErrhyAge~~„~Uablliti~es~(UAAL}._~~°~Aatio~ ~s,~~Payroll~.,,~GovererJ~PayrNl
December3l, 1997 $1,984 $2,278 $294 87.10% $0 N/A ~
January 1, 1999 2,096 2,157 60 97.170/c 119 50.42%
January 1,2001 "3,632 2,332 (1,300) 155.75% 58 -2241.38%
This plan primarily covers inactive participants. There are no current member contributions. ~
Note: Prior to adoption of GASB Statements No. 25 in 1997, the 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.
Assets formerly allocated to pay medical costs now included with pension assets.
~
~
Page 56 ~
CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS
~ I SCHEDULE OF EMPLOYER CONTRIBUTIONS 1 I-THREE YEAR TREND INFORMATION-1
~ Fscaf Actual Annual Reqwred. Perqenffige - Annuai Percerrtage Net ~
Year • Empioyer Contnbution oi,ARC ~ ~ - Pension`Gost yof APC ~:.~ension
~ F . ~3~.w
a Ending Confributions' Cor~tributed- . ~ APG_.,- _ __,Contritiuted__
~ December31, 1997 27,847 $ 38,763 71.84% $ 38,763 71.84% $ 10,916
December31, 1998 24,822 38,763 64.04% 38,788 63.99% 24,882
December 31, 1999 52,738 5,381 980.08°/a 5,249 1004.72% (22,607)
~ December 31, 2000 31,721 5,381 589.50% 5,520 574.66% (48,808)
December 31, 2001 37,281 N/A 341 '9677.42% (85,748)
` Assumes that the fire insurance premiums increase in accordance with assumptions and that no additionai
~ city contribution is made.
Information prepared by prior actuary.
GASB Statement #27
Mnual Development of Pension Cost
~ .
~ FISCAL Amort Annual ""Total
3
YEAR , j ARC at irrteresi on AFiG , Factor' Pensian Cost Empioyer, Change ua NPO ~
~ ENDING. =.,ElOY (2) v a; _ NPO (1}, AdJustrrient...- " , . (APC). . -Coiitri6utions._ NPQ,._. Batanee ;
12/31/1997 $ 38,763 $ - $ - 12.88% $ 38,763 $ 27,847 $ 10,916 $ 10,916
~
12/31/1998 38,763 873 848 12.88% 38,788 24,822 13,966 24,682
12/31/1999 5,381 1,742 1,874 13.28% 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 - (3,417) (3,758) 12.99% 341 37,281 (36,940) (85,748)
~ (1) 8.00% interest rate was used for years prior to January 1, 1999: 7.00% thereafter.
(2) A change in consuiting actuaries resulted in a recommended change in the actuarial methods and assumptions.
Based on 30-year level-dollar closed amortization as of January 1, 1999 (28 years as of January 1, 2001).
~ The information presented in the preceding required schedules was determined as part of the
actuarial valuations at the date indicated.
~ Valuation date Janua 1, 2001
Actuarial cost method Entry Age Normal
~ Actuarial Cost Method
Amortization method Level ercent closed
Remainin amortization eriod 28 ears
~ Asset valuation method iMarket Value
Actuarial Assumptions:
~ Investment rate of return 7%
Pro'ected sala increases 5%
Cost-of livin ad'ustments 4%
~
~
1 Page 57
CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS i~
~
NOTE 10 - LONG-TERM DEBT
General Obligation Bonds is a direct obligation of the City for which its full faith and credit are ~
pledged. Debt senrice is.paid from Debt Senrice Funds. Debt service for voter-approved issues
is funded by special property tax levies. Debt service for City Council authorized or councilmanic
issues is funded from regular property taxes. ~
Revenue Bonds are payable from revenues generated by the Enterprise Funds.
Special Assessment Bonds are not a direct responsibility of the City, but are funded from the ~
collection ofi special assessment payments. Debt service principaf and interest costs are paid
from the individual LID Funds. The government 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 Iocal improvement bonds in the event there are insufficient funds in the individual LID
fund.
Public Works Trust Fund Loans are a direct responsibility of the City. Aubum currently has two ~
outstanding loans with a remaining balance of $7,367,157. The loan will be repaid from Water .
Fund revenues over a 20-year period when the all the projects funded by the loan are completed.
Other Debt includes a long-term contract the City entered into with Valley Communications ~
Center Development Authority. The Authority issued $12,758,000 in general obligation bonds
during 2000: The city is contracted to pay 20% of the debt service over a 15-year period. The .
outstanding principal on the City's portion is $2;455;000. As per the agreement, the City ~
recognizes this debt when calculating legal limit of indebtedness. (See Note 4).
The schedules, which follow, summarize the long-term debt transactions of the City for the year ~
ended December 31, 2001. 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 and the reconciliation of debt per fund type.
CHANGES IN LONGTERM DEBT SUMMARY ~
"l""t
` ~ a.~', at R c-n ; p
vp~p.p~j•
LongTerm Debt Payable 1/1/01 $ 7,956,600 $ 12,567,500 $ 1;013,904 $ 3,341,135 $ 24;879,139
qdded - 6,972,025 - 57,991 7,030.016
Retired (256.600) (1,062.368) (275,000) (988) (1,594,956)
Teri110~t~u.n~""PByable~~1 ?l31~/bl~~
~
~
~
~
Page 58 ~
~ CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS
~
~ CHANGES IN LONG-TERM DEBT
~ ~ ate Issua~~. ~ , 01J0112061~ ~ ' ~lssued ~ r,~~~mad~ ~ 12J311200J,~,~
ISSUB~N8R16 ~
GeneraL•
Generaf Obligatlon Bonds:
~ limited G.O. Library 3.75-5.00 12/01/18 $ 4,000,000 $ 3,755,000 $ - $ (140,000) $ 3,615,000
Sr)eciai Assessment Bonds:
L.I.D. #341/348 4.40/5.70 10/01l07 $ 817,332 $ 245,000 $ - $ (70,000) $ 175,000
~ L.I.D. #345 3.2515.20 11l01/05 151,020 20,000 : (10,000) 10,000
L.I.D. # 346 5.85 03/31/09 206,077 161,077 (95,000) 66,077
L.I.D. # 347 6.85 05/01/12 587,827 587,827 - (100,000) 487,827
-...-..`...~`Y^'v R&"^a'E ~.~.."y'".Y•,'a"'k~} : ^'~7 ` . . ~ ~ i ~ . ~ . .
Other General Obligation Debt:
Vailey Communication G.O. 4.3-5.75 12/01/15 $ 2,551.600 $ 2,551.600 $ - $ (96,600) 2,455,000
~ EmpJgvee Leave Benefit: $ 2,922,874 $ 39,847 $ - $ 2,962,721
Proprietary:
General Obligation Bonds
G.O. Bond 1999 4.5/5.6 11/01/19 $ 1,655,000 $ 1,650,000 $ - $ (20,000) $ 1,630,000
~ Revenue BondS:
Utility Sys. Revenue 1997 5.45/6.0 11/01/16 $ 5,000,000 $ 4,315,000 $ - $ (180,000) $ 4,135,000
WtNStorm Revenue 1999 49/615.1 11/01/09 8,345,000 7,675,000 - (700,000) 6,975,000
r
~ ~~~Totai Revenue Bon s ~ ~ ~ ~ 13.34b 11'99d 000 ~ ` $ ~{860 000} 1 i 1,10 OOD~
Emolovee Leave Benefit: $ 416,325 $ 18,144 $ - $ 434,469
~ Public Works Trust Fund Loans:
PWTF 1999 1.00% 07/01/19 $ 577,500 $ 2,887,500 $ (182,368) $ 3,262,632
1 P1NTF 2001 0 50% 07/01 /21 4,084,525 4,084,525
. .
Total rropri;etary , . ' , ; * f 16;000 000 14833 825 ~ 6 990169 082;366 ' 20,541 `66~6:
~ Fiduciary: -
Emplovee Leave Benefit: $ 1,936 $ $ (988) $ 948
>ii«~s7x.~kff%$~,~~~, .~K/~Qq~N
.a ^,,.'9 ~:..f,?v~~~~~.~a„z. .,,-~.'~~'~S ~~_..-tu c-~.o`v'~n...._h`.Z-u+~c.z"n:✓,~..,a, .t,~,a;,,..~~~ ~ ~
~v. . ~.F e.. . .
$7 r_.23:313856` :;$.,<,`24,879 139,_:~$. s-'7~03001,6 ; {~;5~9563,=~$: a30;314~99;
.
~
~
~
~ Page 59
CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS
DEBT SERVICE REQUIREMENT TO MATURITY ~
O•~ !
~v6~, ~
a~
~e~ Tertn~~t ~
~
-
Pnmpe~~. ~4 Interesf:~";~.Frit~apal~~ ~irrterest u 1?nnq~-,~*~ ciPel~~~~itfte►est~
2002 298,000 372,650 1,102,368 623,044 77,608 47,672 3,398,136 4.876,114 1,043,366
2003 314,000 358,643 1,357,343 574,758 132,608 42,801 - 1,803,951 976,202 ~
2004 334,000 343,897 1,407,343 523,372 132,606 34,800 - 1,873,951 902,069
2005 311,000 327,997 1,462,343 468,948 52,608 26,719 - 1,825,951. 823,664
2006 328,000 310,812 1,512,343 411,700 52,608 23;197 - 1,892,951 745,709
2007 480,000 292,774 1,572,343 . 351,901 52,608 19,676 - 2,104,951 ' 664,351 ~
2008 422,000 273.664 1,632,343 289,027 52,608 16,638 - 2,106.951 579,329
.
2009 445,000 253,065 1,697,343 224,634 52,607 30,861 - 2,194,950 508,560
2010 469,000 232,800 677,343 155,705 44,347 - - 1,190,690 388,505
2011 498,000 211,000 697.343 135,488 44,347 - - 1,239,690 346,488 ~
2012 527,000 187,570 717,343 119,738 44,347 185,648 - 1,288,690 492,956 `
2013 560,000 1fi2,720 727.343 99,880 - - - 1287,343 262,600
2014 586,000 135,145 747,343 79,491 - - - 1,333,343 214,636
2015 618,000 105,428 7fi2,343 57,518 - - - 1,380,343 162,946 ~
2016 415,000 73,785 782,343 34,727 - - - 1,197,343 108,512
2017 440,000 54,055 397,343 10,845 - - - 837,343 64;900
2018 465,000 33,055 397,343 7,947 - - - 8fi2,343 41,002 ~
2019 190,000 10,640 357,343 5,048 - - - 587,343 15,688
2020 - - 214,979 2,150 - - - 214,979 2,150
2021 - - 214,979 1,075 - - - -
TN:S $77:700Q00
~,"~''~~33 9;Z0 118. n;17 ~'1Z6996'~`~~'T3B'~$~928
0
~ 1~ • ~ ,
Special Assessment bond principal and interest are provided by the Debt Service Funds. ~
LONG TERM DEBT RECONCILIATION
~L ::s° ~v3~~~" ~,n g~~ 'F",F~ ~.*s ~x~ uu~'~'~ ~r--'~,",~~.5'~~y''""~,. 'a~,.~~ •~e.~. ~
~ _ Enterpnse ~~;"~Servios ~Agency Debi, ~24,Q~
Liabilities:
Payable From Restricted Assets:
Reyenue Bonds $ 1,088,745 $ - $ - $ - $ 1,088,745
Long-Term Bonds Payable:
General Obligation 8onds 1,630,000 - - 6,070,000 7,700,000 ~
Special Assessments with
GovernmenYCommitment - - - 738,904 738,904
Revenue Bonds 10,021,255 - 10,021,255
~
Employee Leave Benefits 398,387 36,082 948 2,962,721 3,398,138
~ ' -~_~ap,a
~otal Bondd • bf , $~~13;~138:387 q$,36,Q8L~ $x~`~ '~$~,9;7,9825~~.~$~22947~A„42~
Revenue Bond Debt Service Coverage ~
The required debt service coverage for the 1997 and 1999 utility revenue bonds is 125. Debt ~
service coverage for 2001 was 3.87. See Figure 6 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 rate ~
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. ~
Page 60 ~
~ CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIALSTATEMENTS
~
NOTE 11 - CONTRIBUTED CAPITAL
~ During the year, contributed capital increased by the following amounts:
~ ~ ~r'i~~~;
So~uce ~ ~ ~f , ~ ~,.✓'~+3~~Water~ ~ Sewer~~~.~ ~ .~StormM5 e rttal
~ New Connections $ 336,907 $ 715,975 $ 300,128 $ -
Developers-New Systems 2,733,245 1,077,903 428,571
Govemment-Other Units (461,071) - - -
Govemment-Other Funds - - - 370,153
~ Total Additions 2,609,081 1,793,878 728,699 370,153
Contributed Capital
at Beginning of Year 35,799,963 28,098,803 2,841,310
CAtiVila ~~KK
. ~728,&99,~ffi 3~~;463~
Enii,of 1Fear° 39;,409,044 ,~29;892,681~'F
~ During 1996 and 1997, the City entered into interlocal agreements with adjacent water districts to
construct facilities and to sell them water wholesale. Contributions for facilities were $4.4 million.
~ When construction was complete, facilities within the water district were sold back to the district
for a nominal fee. The amount of total contributed capital was reduced in proportion to the cost of
- the asset returned to the District. The facilities were completed, under budget, in 2001 and a
portion of the contributed capital was returned the water districts.
~ NOTE 12 - RESERVATIONS OF FUND EQUITY
~ The following is an analysis of fund equity reservations and designations by type for each of the
City's fund groups.
RESERVES
~
~es~es~or ~ ~=~Genecat ' Rev~M . ° S~t~nce` rater{tnse ~ ~
~ Retained Eamings: ~ ~
Debt Service-Future $ - $ - $ - $ 1,388,124 $ - $ 1,388,124
Construction - - - 903,634 - 903,834
~ Fund Balance: _ _
Petty Cash 6,025 6.025
Contributions 12,718 12,718
Retirements 574,315 - - - - 574,315
Street & Fire 994,803 - - - 994,803
~ Debt Service _ - 142,564 _ - 142,564
Endowment 1,008,368 1,008,368
Pension Fund - - - - 3,668,268 3,668,268
LI D Guarantee - - 1,781,236 - - 1,781,236
otal~Reserve` ~ .$.,593;058,~~$~934,8~~~$~1~°,923;8Q0'~~~?$;~2:291,9~8~~$.~4;67`6;6 ,~~:1~0>48t~!„25~
~
Page 61
~
CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS
~
NOTE 13 - ENTERPRISE FUND SEGMENT INFORMATION
The City of Auburn operates seven enterprises whose revenues primarily are derived from user ~
fees. Summary of the financial activity during 2001 for these funds is as follows:
ENTERPRISE FUNDS SEGMENT DATA ~
UTILITIES
" ~ 5s ~ ; t~,' ~~r~'~ f ^~k 3TORM SOL~ID ~ x ~~g tr ~ LSO' ~ TOTAL~~ ~~aba«~ r?~~ . k~e ~r~WATEA„ ~SEWER ~RAINAGEa~ wASTE=~ rA1RPORT CfMETERY CC7URSE~,~ ENTERPRISE.
'14~~ar"~"F~'~ .`~F,a.~ . a' ~k~~~~` t~ . s `z,.. ~ a ~ '~~'~x ~;f,~'~r"`~ '~+,.'ar~ x'~fr.~s#~K~i~.;'
TI pTAL_OPEKRTING•'EtEVENUE~ S}°~'~'~S~""°,S,~B94,858.r$~9~~2669.8Q4 $ 8488.049.,.$~.746996a~$ 806:~4.$xv.991.948~$~`*28;57&818~i
OPERATING EXPENSES
Operation & Maintenance 1,934,147 6,640,495 629,668 7.400,269 373,187 481,811 656,619 18,116,216 ~
Administration 933,268 693,867 774212 391,773 199,886 128,936 52,623 3,174,565
Taues 512,078 566,800 181,775 539,023 1,456 7,752 53,946 1;862,830
DepreciatioNAmortization 1,200,043 597,493 517,132 13,155 268,388 102,880 123,312 2,822,403
~TOTAL~QPERATINB';EXP~ENSE3~~~`~~4:5Z9:536. e~.,:8.498.665.,,.:~ ; 2it02,787, ~~~,8;344;240~k~~842;B17~e~'~..~721;~Z9rs~",'886:50!0:~~;25:876;044
~OP6R,~%1T1NG,INGOM'~L(_OSS)~` f',255:~ ~736646~W *~'ro~' W'u5$7:Qf~v7~~~~43809 ~'~~~(~95921):~"i'"a~114;715)~`"' "*tQ5.~4A8 s :;:>2;b99:~4°§ ~
_ON-OPERATING~REY/ A ~ > t361:6T5) s.~. °^~.~328~7~~:':,a?.<'~'~kZ;080<..~ ~1N67f3 4~79573~.~+"~~.~_19i414",~ ..z:'t24.438} ~ €:1M:229'
Operating Transfers-(In) - - - - - - - -
Operating 7ransfers-(Out) (76,000) (76,000) - - (152.000) ~
~NETfN001Y~; 3a°X ~,~~~$~~9'D;i".647 „$'~"991:253",~'$~~48.3;097~$~r,.;253:522«~.J$~a?(18:348)r~$~ (~~~9''a.301)~$~'."u8.U10~$;~te2i6t~l,880.
CURRENT CAPITAL CONTRIBUTIONS 2.609.081 1,793,878 728,700 - - - - 5,131,659
PROPERTY/PLANT/EQUIPMENT ~
Deletions (661,667) (19,952) (573,670) . (14,183) (13,974) (49,630) (125,374) (1,458,450)
Additions 14,579,506 3,006,887 6,297,514 336,237 324,009 21,101 217,428 30,360,990
~WORK1Na~CAP,~kTA-L ~2866:t8 ` ~8:927;d8T ~4483:9819-23410,539I'M~-,280:8'90?~~'~329,OM1' 189,7547
~t~~'a. _
TOT~ALNET='~A~SSraET 17 335 ~
•,..ru_.. ''4 +4;0,507 303'130„a .270
:8~ 18 439= ,:143;082:232,
BONDS AND OTHER LIABILITIES
PAYABLE FROM OPERATING
REVENUES 76,572,845 210400 4,116,410 719155 1802246 69,367 41190 23.531,613
w._-~.--~•-+---,-.-.---.-"'_°----- ~
T~l'AI:`R1ND ECtI'JITY '~:.,*a': ..$„~38.425.837 35.906;93E~r$'~~.5D6.920 3 3b731.952'p~~~'~"$.y.6,SDQ.884",~::$ ~:1:201;488. $ _42T7.249.~S::~Y]8:56fl:819
~
PIOTE 14 - JOINT VENTURE / RELATED PARTY
The "Valley Communications Center" was established August 20, 1976, when an Interlocal ~
Agreement was entered into by the four participating municipal corporations, including the cities
of 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
seroed 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. A new ~
interlocal Agreement pursuant to RCW 39.34, et seq., was entered into by the five participating
municipal corporations that include the cities of Auburn, Federal Way, Kent, Renton and Tukwila
on April 17, 2000. This agreement reaffirmed Valley Communications Center as a govemmental
administration agency pursuant to RCW 39.34.030 (3) (b). ~
~
Page 62 ~
~ CITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS
~ 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 #17, #20, #40, #43, #44, #46, #47, City of Pacific Police and Fire Departments, City
of Algona Police Department, City of Des Moines Police Department, City of Newcastle, City of
Federal Way and King County EMS Units. In 1988, King County Fire District #1 was annexed to
~ the City of Tukwila. Separate agreements among Valley Com and the subscribing agencies have
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
1 this 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 of January 1 through December 31. The percentages are applied to the current approved
budget, less revenue from subscribing agencies and all other sources.
~ The 2000 cost distribution for the five participating cities are as follows:
- D ispatohable;:~Rer~ent=af
-f~'^~ ~~LAQ) ' w:1...
Renton 58,221 28.95%
~ Kent 83,769 20.12%
Aubum 57,450 19.87%
Tukwila 36,900 12.75%
~ Federal Way 53,000 18.31%
1~otat~` M, 289~340
Distribution of current year net income is based on these budgeted percentages. Information
stated'in Equity chart
~ 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)
Approves appointment and/or discharge of the Director; 3) Approves personnel policy and makes
final decisions on all major policy changes; 4) Review and approves 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 Interfocal Agreement.
~
Page 63
1
CITY OF AUBURN• 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS ~
In August 1993, Valley Com entered into an Interlocal Cooperation Agreement, pursuant to ~
Chapter 39.34 ACW, with the subregions 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 yoluntary termination of any subregion 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
subregion or consortium of subregions.
The share of equity belonging to the five participating cities is as follows: ~
~
~ . ~y ,r
Aubur~n~ Tu°kwila Fecle <z rai W~ Tcrta~~
z3:~:~'-~~~~.
Equity Jan. 1, 2001 $ 2,546,163 $ 3,247,038 $ 2,266,521 $1,715,909 $ 569,630 $ 10,345,261
Current Year lncrease 1,541,096 2,217,346 1,521,454 976,734 1,402,132 7,658,762
Equity Dec 31, 2001 $ 4;087,259 $ 5,464,384 $ 3,787,975 2,692,643 $ 1,971,762 18,004,023 ~
% of Equity 22.70% 30.35% 21.04% 14.96% 10.95%
%of 2001 Distribution 20.12% 28.95% 19.87% 12J5% 18.31%
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, 23807 98 Ave S, Kent, WA 98031 or phone (206) 854-4320.
NOTE 15 - CONTINGENCIES AND LITIGATION ~
As of December 31, 2001, 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 16 - RISK MANAGEMEiVT ~
The City of Aubum 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,l, 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 103:
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. ~
~
Page 64 ~
GITY OF AUBURN: 2001 CAFR NOTES TO THE FINANCIAL STATEMENTS
~ Liability coverage is written on an occurrence basis, without deductibles. Coverage includes
general, automobile, police professional, public officials' errors or omissions, stopgap, and
employee benefits liability. Limits,are $1 million per occurrence in the primary layer, $2 million
~ per occurrence, subject to a$12 million annual aggregate, in the excess layer, and $11 million
per occurrence in the second excess layer with no annual aggregate except $10 million per _
mem6er for public officials errors and omissions. The second excess layer is insured by the
~ purchase of,reinsurance. 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.
Rroperty insurance and auto physical damage are self-funded from the members' deductible to
$250,000 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
consultanfs for personnel issues, and land use problems, insurance brokerage and lobbyist
~ services.
WGIA 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 rnember. 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 forconducting the day-to-day operations of' WCIA.
i ,
- Page. 65
~
CITY OF AUBURN: 2001 CAFR NOTES TO THE fINANCIALSTATEMENTS ~
NOTE 17 - RESTATEMENTS AND PRIOR PERIOD "ADJUSTMENTS
~ .
Gertain reclassifications have been made with respect to prior years' balances to provide ~
presentation consistent with currentyear.
For the year ended December 31, 2001, the following prior period adjustments have resulted in
fund eguity restatement. ~
f,
CITY OF AUBURN ~
2001 PRIOR PERIOD ADJUSTMENTS
Understatement of Expense
Water (1) (2) $ (4,390,261) ~
Sewer (1) (2) . (470,950)
Storm Drainage (2) 61,209
Solid Waste (2) (1,430) ~
Airport (2) (3,103)
~ Cemetery (2) (5,315) ~
Golf Course (2) (4,675)
Special Parks Expendable Trust'(3) (62,449) ~
Total Prior Period Adjustments
' (1) Increase prior year recognition of expense ~
(2) Equity resfated as a result of a revision to the city's fixed asset
policy which increased the unit cost threshhold for fixed asset -
capitalization from $500 to $2,500. ~
(3) Fund balance restated as deferred revenue.
Much of the prior yeac recognition of expense write off relates to construction project eosts that
had been accumulating in the Work in Progress account in the fixed asset category. These costs ~
were mainly research and development on projects that did not result in caPitalizable assets.,
~
~
~
~
~
Page 66
. ~