Union Station Financial Report December, 2008

Transcription

1 Union Station Financial Report December, 2008 City of Tacoma Public Works Prepared by: Michele Tuong

2 Table of Contents Management Discussion and Analysis 3 Financial Statements...5 Notification These financial statements are interim, unaudited reports prepared primarily for the use of management. Not all transactions reported in these statements have been recorded on the full accrual basis of accounting or in accordance with generally accepted accounting principles. 1

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4 Management s Discussion and Analysis 3

5 City of Tacoma Public Works Department Union Station Management s Discussion and Analysis December 31, 2008 The Union Station is composed of two funds: the Renovation Fund, 4450 Renov, and the restricted Operating Fund, The financial statements are prepared on a full accrual basis of accounting. The purpose of the Renovation fund is to keep separate any City assessments or other expenses from the Operating Fund. The Operating Fund was established as a restricted fund to account for a thirty year capital lease with the Federal Government who uses the renovated Union Station as a Federal Courthouse. The assets in this fund are also restricted to pay the debt service on the bonds used to finance the renovation. Union Station Operating Fund (4450) Capital Lease and Debt Service The Operating Fund has cash and cash equivalents of $1,875,488 in a debt service Trust with JP Morgan Trust Institution at year end 2008 compared to $1,823,035 at year end This is mostly due to a reduction of long term liabilities and the interest payments on debt. Cash lease payments received are $337,631 per month and total $4,051,569 each year. This was higher in 2007 due to the timing of a payment received from the Federal Courthouse. Debt service payments are made March 15 and September 15 of each year. This year s debt service is $4,041,829 compared to $4,048,324 in In 2008, $2,896,859 of deferred revenue was realized which is equal to the amount of debt service interest expense accrued; this compares to $2,995,751 in Union Station Renovation Fund (4450 Renov) The Renovation Fund has unrestricted cash and cash equivalents balances of $111,343 in 2008 compared to $116,158 in These funds are used to pay trustee fees, bond registrar fees, and City assessments. In 2007 the City received a reimbursement of clean up costs through a bankruptcy settlement from Owens Corning in the amount of $90,032 for clean up costs that were expended May 1993 through May In 1999 the City sued certain past owners and operators of upland properties adjacent to the Thea Foss Waterway to recover costs it incurred cleaning up contaminated properties. The lawsuit was settled through mediation with most parties settling their liability to the City by making lump sum payments in 2001 and Owens Corning, filed bankruptcy and was unable to settle; the City was named as a creditor in the bankruptcy proceeding based on its lawsuit and in December 2007 received a settlement payment. 4

6 Financial Statements 5

7 City of Tacoma, Washington Public Works Department Union Station Balance Sheets (Unaudited) ASSETS Current assets: December 31, Increase (Decrease) Cash and cash equivalents $ 111,343 $ 116,158 $ (4,815) Lease receivable from Federal Government 4,051,569 4,051,569 Total current assets 4,162,912 4,167,727 (4,815) Restricted cash, and cash equivalents 1,875,488 1,823,035 52,453 Noncurrent lease receivable from Federal Government 51,893,824 55,945,393 (4,051,568) Total assets $ 57,932,224 $ 61,936,155 $ (4,003,931) LIABILITIES Current liabilities: Interest payable $ 831,011 $ 860,982 $ (29,971) Current portion of revenue bonds payable 1,225,000 1,115, ,000 Deferred revenue 2,788,610 2,896,859 (108,249) Total current liabilities 4,844,621 4,872,841 (28,220) Noncurrent liabilities: Revenue bonds payable 29,655,000 30,880,000 (1,225,000) Deferred lease revenues 22,469,045 25,257,654 (2,788,609) Total noncurrent liabilities 52,124,045 56,137,654 (4,013,609) Total liabilities 56,968,666 61,010,495 (4,041,829) NET ASSETS Lease agreement with Federal Government, net of related debt (1,023,273) (1,013,533) (9,739) Restricted cash and cash equivalents 1,875,488 1,823,035 52,453 Unrestricted 111, ,158 (4,815) Total net assets 963, ,660 37,898 TOTAL LIABILITIES AND NET ASSETS $ 57,932,224 $ 61,936,155 $ (4,003,931) These statements should be read in conjunction with the Notes to Financial Statements contained in the 2008 Comprehensive Annual Financial Report 6

8 City of Tacoma, Washington Public Works Department Union Station Statements of Revenues, Expenses and Changes in Net Assets (Unaudited) December Year to Date December Increase (Decrease) OPERATING EXPENSES Supplies, services and charges $ 5 $ 306 $ 4,815 $ 4,916 $ (101) Operating (expense) (5) (306) (4,815) (4,916) 101 NONOPERATING REVENUES (EXPENSES) Interest income 1,414 5,060 42,713 91,376 (48,663) Insurance receipt 90,032 (90,032) Lease income 241, ,648 2,896,859 2,995,751 (98,892) Interest expense (241,405) (249,648) (2,896,859) (2,995,771) 98,912 Total nonoperating revenue (expense) 1,414 5,060 42, ,388 (138,675) CHANGE IN NET ASSETS $ 1,409 $ 4,754 37, ,472 (138,574) Total net assets beginning 925, , ,472 Total net assets ending $ 963,558 $ 925,660 $ 37,898 These statements should be read in conjunction with the Notes to Financial Statements contained in the 2008 Comprehensive Annual Financial Report 7

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10 City of Tacoma, Washington Public Works Department Union Station Statements of Cash Flows (Unaudited) Year to Date December Increase (Decrease) CASH FLOWS FROM OPERATING ACTIVITIES Payments to employees $ $ Payments to suppliers $ (4,815) $ (4,916) $ 101 Insurance recovery and other 90,032 (90,032) Net cash provided by operating activities (4,815) 85,116 (89,931) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Lease receivable from Federal Government 4,051,569 4,389,216 (337,647) Principal paid on capital debt (1,115,000) (1,025,000) (90,000) Interest paid on capital debt (2,926,829) (3,023,324) 96,495 Net cash provided (used) by capital and related financing activities 9, ,892 (331,152) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 42,713 91,376 (48,663) Net cash provided (used) by investing activities 42,713 91,376 (48,663) Net increase in cash and cash equivalents 47, ,384 (469,746) Cash and cash equivalents beginning balance 1,939,193 1,421,809 (469,746) Cash and cash equivalents ending balance $ 1,986,831 $ 1,939,193 $ 47,638 Reconciliation of cash and equity in pooled Year to Date December Increase (Decrease) investments to balance sheet: Renovation fund $ 111,343 $ 116,158 $ (4,815) Operating fund 1,875,488 1,823,035 52,453 $ 1,986,831 $ 1,939,193 $ 47,638 These statements should be read in conjunction with the Notes to Financial Statements contained in the 2008 Comprehensive Annual Financial Report 9

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