Union Station Financial Report December, 2006

Transcription

1 Union Station Financial Report December, 2006 City of Tacoma Public Works Prepared by: Sheri Hayes 1

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. 2

3 City of Tacoma - Finance Department TO: Steve Marcotte Craig Sively FROM: SUBJECT: Sheri Hayes, Financial Analyst Union Station December 2006 Financial Statements (Unaudited) DATE: February 1, 2006 Management s Discussion and Analysis The Union Station Group is composed of two funds: the Renovation Fund, 4450 Renov, and the restricted Operating Fund, Following renovation, the Union Station was leased to the General Services Administration for thirty years as a Federal courthouse. The transaction met the criteria for a capital lease agreement. The enabling ordinance restricted the fund to accounting for the lease transactions and restricted the assets to debt service for the bonds that financed the renovation. Cash Balance Union Station Operating Fund (Fund 4450) The Operating Fund has cash and cash equivalents of $1,394,916, in a debt service Trust with JP Morgan Trust Institution. The financing bonds are structured so that the amount of the lease payments received would coincide with the debt service payments. Lease Revenue and Lease Receivable Deferred lease revenues are realized at a monthly rate of $257,197. This amounts to $3,086,368 for the year. Cash lease payments are applied against the receivable monthly for $337,631 which totals $4,051,569 for the year. 3

4 Interest Expense and Debt Payments Interest expense is accrued monthly at a rate of $257,197 for a December year to date of $3,086,368. Debt service payments are made March 15 and September 15. This year s debt service is $4,046,480 of which $4,046,480 has been paid. Cash Balance Union Station Renovation Fund (Fund 4450 Renov) The Renovation Fund has cash and cash equivalents balance of $26,893 as of December 31, 2006 compared to $37,162 for year end These funds are the residual of the renovation bond proceeds, interest earnings, and cash contributions from the City and other entities. The Funds are utilized to pay trustee fees, bond registrar fees, central service funds expenses, and personnel costs. Sufficient cash and investments are no longer on hand to pay expenses through the maturity of the financing bonds. Revenues Interest on investment earnings through the end of December are $92,853. Expenditures The Renovation Fund expenditures through the end of December total $10,905. Expenses are $4,109 for trustee and registrar fees and $6,796 for internal assessments. Eliminating monthly financial reporting reduced labor costs in an effort to conserve the required cash balance. CC: Alex Gebhard Sally Cowan 4

5 Financial Statements 5

6 City of Tacoma, Washington Union Station Balance Sheets (Unaudited) December 31, Increase (Decrease) ASSETS Current assets: Cash and cash equivalents $ 26,893 $ 37,162 $ (10,269) Lease receivable from Federal Government 4,389,217 4,389,217 0 Total current assets 4,416,110 4,426,379 (10,269) Non current assets: Restricted cash, and cash equivalents, and investments: Cash and cash equivalents 1,394,916 1,297,614 97,302 Due to/due from (3) 3 Total restricted assets 1,394,916 1,297,611 97,305 Lease receivable from Federal Government 59,996,961 64,048,530 (4,051,569) Total non current assets 61,391,877 65,346,141 (3,954,264) Total assets $ 65,807,987 $ 69,772,520 $ (3,964,533) LIABILITIES Current liabilities: Interest payable $ 888,515 $ 913,627 $ (25,112) Current portion revenue bonds payable 1,025, ,000 90,000 Deferred revenue 2,995,771 3,086,368 (90,597) Total current liabilities 4,909,286 4,934,995 (25,709) Non current liabilities: Revenue bonds payable 31,995,000 33,020,000 (1,025,000) Long term deferred lease revenues 28,154,514 31,150,285 (2,995,771) Total non current liabilities 60,149,514 64,170,285 (4,020,771) Total liabilities 65,058,800 69,105,280 (4,046,480) NET ASSETS Lease agreement with Federal Government, net of related (672,621) (667,536) (5,085) Restricted cash, investments and interest receivable 1,394,916 1,297,614 97,302 Unrestricted 26,893 37,162 (10,269) Total net assets 749, ,240 81,948 TOTAL LIABILITIES AND NET ASSETS $ 65,807,987 $ 69,772,520 $ (3,964,533) These statements should be read in conjunction with the Notes to Financial Statements contained in the 2005 Comprehensive Annual Financial Report. 6

7 City of Tacoma, Washington Union Station Statements of Revenues, Expenses and Changes in Fund Net Assets (Unaudited) December Year to Date % CHG OPERATING EXPENSES Personnel salaries and benefits $ $ 121 $ $ 1, % Supplies, services and charges ,905 11,365 4% Total operating expenses 553 1,068 10,905 12,820 15% Operating income (expense) (553) (1,068) (10,905) (12,820) 15% NONOPERATING REVENUES (EXPENSES) Interest income 4,152 3,882 92,853 13, % Lease income 257, ,074 3,086,368 3,168,887 3% Interest expense (257,197) (264,073) (3,086,368) (3,168,877) 3% Total nonoperating revenue (expenses) 4,152 3,883 92,853 13, % CHANGE IN NET ASSETS $ 3,599 $ 2,815 81, % Total net assets beginning 667, ,483 0% Total net assets ending $ 749,188 $ 667,240 12% These statements should be read in conjunction with the Notes to Financial Statements contained in the 2003 Comprehensive Annual Financial Report. 7

8 City of Tacoma, Washington Union Station Statements of Cash Flows (Unaudited) December Year to Date Source (Use) CASH FLOWS FROM OPERATING ACTIVITIES Payments to employees $ $ (1,481) $ 1,481 Payments to suppliers (10,908) (12,269) 1,361 Net cash provided by operating activities (10,908) (13,750) 2,842 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Lease receivable from Federal Government 4,051,569 4,051,569 Principal paid on capital debt (935,000) (855,000) (80,000) Interest paid on capital debt (3,111,481) (3,191,841) 80,360 Net cash provided (used) by capital and related financing activities 5,088 4, CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends received 92,853 13,567 79,286 Net cash provided (used) by investing activities 92,853 13,567 79,286 Net increase in cash and cash equivalents 87,033 4,545 82,488 Cash and cash equivalents, January 1, (including restricted accounts) 1,334,776 1,330,231 4,545 Cash and cash equivalents, December 31, (including restricted accounts) $ 1,421,809 $ 1,334,776 $ 87,033 Reconciliation of operating income to net cash provided (used) by operating activities: Operating income $ (10,905) $ (12,820) $ 1,915 Adjustments to reconcile operating income to net cash provided (used) by operating activities: Due to/due from (3) 3 (6) (Increase) (decrease) in accounts payable (907) 907 (Increase)(decrease) in accrued wages & benefits payable (26) 26 Total adjustments (3) (930) 927 Net cash provided (used) by operating activities $ (10,908) $ (13,750) $ 2,842 These statements should be read in conjunction with the Notes to Financial Statements contained in the 2005 Comprehensive Annual Financial Report. 8