Fleet Services Division Financial Report December 2012

Transcription

1 Fleet Services Division Financial Report December 2012 City of Tacoma Fleet Services Administrative Division Public Works Department Prepared by: Michele Tuong

2

3 Table of Contents Management s Discussion and Analysis... 3 Financial Statements... 9 Notification These financial statements are unaudited reports prepared primarily for the use of management. Immaterial differences may occur due to rounding. 1

4 2 (This page intentionally left blank.)

5 Management s Discussion and Analysis 3

6 City of Tacoma Public Works Department Fleet Services Division Management s Discussion and Analysis December 31, 2012 Financial Highlights Fleet Services assets exceeded liabilities by $24.1 million at December 31, 2012, and $23.8 million at December 31, The fund incurred a loss before contributions and transfers of $1.7 million in 2012, compared to a loss of $1.4 million in Since vehicle replacement or lease revenue has been partially suspended, the majority of vehicle purchases are being funded by the Limited Tax General Obligation (LTGO) Fund. Financial Analysis Condensed Consolidated Comparative Statements of Net Position December 31, Increase (Decrease) Current assets $ 5,355,481 $ 5,141,648 $ 213,833 Operating Fund capital assets 2,640,224 2,765,400 (125,176) Capital assets leased to others 16,617,575 16,779,291 (161,716) Total assets $ 24,613,280 $ 24,686,339 $ (73,059) Current liabilities $ 300,471 $ 603,963 $ (303,492) Noncurrent liabilities 203, ,298 (31,932) Total liabilities 503, ,261 (335,424) Invested in capital assets 19,257,799 19,544,691 (286,892) Unrestricted assets 4,851,644 4,302, ,257 Total net position 24,109,443 23,847, ,365 Total liabilities and net position $ 24,613,280 $ 24,686,339 $ (73,059) The current ratio for the Operating Fund is 5.3 in 2012 and 3.7 in A current ratio is a measure of liquidity; a ratio of 2.0 or higher is considered financially strong. Current assets Current assets increased $214,000 (4%) from December 31, 2011 to December 31, Operating cash increased $290,000 to a balance of $1.1 million. This is mostly due to an increase in services and repairs revenue and a refund of $53,000 from the General Fund for overpayment of assessments charged during 2009, and a refund of $8,000 from the IT Radio Fund following the implementation of the budget modification Resolution No Cash from the Capital Outlay Fund increased $759,000 to a balance of $3.7 million. 4

7 Liabilities Current liabilities decreased $303,000 mostly due to a decrease of $279,000 in Accounts Payable. Noncurrent liabilities decreased $32,000 due to the decrease of long term compensated absences. Capital assets leased to others Capital assets leased to others decreased by $162,000 to $16.6 million. Equipment increased $1.0 million due to purchases of vehicles of $1.8 million net of sales and transfers to other departments of $754,000. The purchases are listed below: One Darley pumper for $596,000 Four GMC Braun medical units for $588,000 Two Ford F450 trucks for $111,000 Other vehicle purchases for $474,000 Purchased equipment not yet in service increased $974,000 compared to last year. It is not unusual for purchased equipment not yet in service to fluctuate due to the difference in timing of the purchases and when the vehicles go into service. Accumulated depreciation on capital assets leased to others increased from $26.9 million to $29.1 million, a net change of $2.2 million. Financial Analysis Condensed Statements of Revenues, Expenses and Changes in Net Position Year to Date December Increase (Decrease) Operating revenue $ 8,971,617 $ 8,728,100 $ 243,517 Operating expense 10,850,211 10,538, ,163 Operating income (loss) (1,878,594) (1,809,948) (68,646) Nonoperating revenues (expenses) 152, ,103 (221,654) Income (loss) before contributions and transfers (1,726,145) (1,435,845) (290,300) Contribution for purchase of capital assets 1,927,700 3,413,558 (1,485,858) Contribution from other funds 60,810 60,810 Transfers from (to) other funds vehicles (960,608) 960,608 Change in net position 262,365 1,017,105 (754,740) Total net position beginning 23,847,078 22,829,973 1,017,105 Total net position ending $ 24,109,443 $ 23,847,078 $ 262,365 5

8 Operating activities For the year ended December 31, 2012, operating revenues increased $244,000 (3%) and operating expenses increased $312,000 (3%). Services and repairs revenue increased $213,000 (3.5%) due to higher service hourly rates charged to customers. Depreciation and shop operation expenses increased respectively $366,000 (14%) and $63,000 (1%) but general and administrative expenses decreased $106,000 (9%) due mostly to a reduction in labor costs. Fuel expenses decreased $17,000 (59%) due to a decrease of $23,000 in cost of fuel administration in The decrease is offset by a larger fuel refund of excise tax of $33,000 in 2011 compared to $26,000 in The following graph shows a sizeable disparity between lease revenues of $891,000 and vehicle depreciation expenses of $3.0 million. This is due to the elimination of Fire, Police and Streets and Grounds vehicle replacement fees which contribute a large part of the lease revenues. Fleet Revenues & Expenses Year To Date December 2012 ($ in thousands) 6,900 5,900 6,342 6,133 4,900 3,900 3,045 2,900 1, (100) 1,067 1, Fuel Repairs G&A Parts Lease Revenues Revenues Expenses 6

9 Non operating revenues (expenses) Non operating revenues decreased $222,000 (59%) for the year 2012 compared to This is mostly due to the decrease of $188,000 (73%) in proceeds from sales of vehicles and the decrease of $36,000 in interest earned from pooled investments. Contributions and transfers Contributions from the LTGO Fund for the purchase of vehicles and equipment decreased $1.5 million (44%) to $1.9 million. Contributions from the other funds totaled $61,000. In May 2012 the General Fund returned $53,000 to the Fleet Operating Fund for overpayment of 2009 assessments. In September 2012 the budget modification Resolution No directed the IT Radio Fund to transfer $8,000 back to the Fleet Operating Fund. There were no transfers of vehicles to other funds in

10 8 (This page intentionally left blank.)

11 Financial Statements 9

12 City of Tacoma Public Works Department Fleet Services Division Statements of Net Position (Unaudited) December 31, Increase (Decrease) ASSETS Current assets : Cash Operating Fund $ 1,098,042 $ 808,174 $ 289,868 Cash Capital Outlay Fund 3,737,171 2,978, ,757 Accounts receivable 57,342 55,033 2,309 Due from other funds 39, ,900 (800,309) Inventories 399, ,370 (39,626) Prepaid items 23,591 20,757 2,834 Total current assets 5,355,481 5,141, ,833 Noncurrent assets: Operating Fund capital assets: Buildings 3,471,693 3,471,693 Equipment 368, ,455 17,930 Less accumulated depreciation (1,199,854) (1,056,748) (143,106) Assets in service, net 2,640,224 2,765,400 (125,176) Total Operating Fund capital assets 2,640,224 2,765,400 (125,176) Capital assets leased to others: Equipment 43,188,272 42,173,324 1,014,948 EV charging stations 118, ,756 Purchased equipment not yet in service 2,397,402 1,422, ,486 Less accumulated depreciation (29,086,855) (26,935,705) (2,151,150) Total capital assets leased to others 16,617,575 16,779,291 (161,716) Total noncurrent assets 19,257,799 19,544,691 (286,892) Total assets $ 24,613,280 $ 24,686,339 $ (73,059) LIABILITIES Current liabilities: Accounts payable $ 90,154 $ 368,831 $ (278,677) Accrued wages and benefits payable 118, ,055 (11,938) Compensated absences 22,596 24,678 (2,082) Accrued taxes payable 3,562 3,864 (302) Due to other funds 66,042 76,535 (10,493) Total current liabilities 300, ,963 (303,492) Noncurrent liabilities: Compensated absences 203, ,298 (31,932) Total noncurrent liabilities 203, ,298 (31,932) Total liabilities 503, ,261 (335,424) NET POSITION Invested in capital assets 19,257,799 19,544,691 (286,892) Unrestricted 4,851,644 4,302, ,257 Total net position 24,109,443 23,847, ,365 TOTAL LIABILITIES AND NET POSITION $ 24,613,280 $ 24,686,339 $ (73,059) These statements should be read in conjunction with the Notes to the Financial Statements contained in the City of Tacoma s appropriate Comprehensive Annual Financial Report (CAFR). 10

13 City of Tacoma Public Works Department Fleet Services Division Statements of Revenues, Expenses, and Changes in Net Position (Unaudited) Month of December Year to Date December Increase (Decrease) % CHG OPERATING REVENUES Administrative revenue $ 88,182 $ 88,870 $ 1,066,511 $ 1,023,717 $ 42,794 4% Lease revenue 73,732 75, , ,229 (40,558) (4%) Fuel revenue 9,392 9, , ,013 3,306 3% Vendor repair revenue 4,332 7,574 61, ,063 (44,852) (42%) Services and repairs revenue 288, ,441 4,277,878 4,069, ,945 5% Parts revenue 33,792 39, , ,845 24,509 5% Full service maintenance revenue 166, ,835 2,002,673 1,952,300 50,373 3% Total operating revenues 663, ,558 8,971,617 8,728, ,517 3% OPERATING EXPENSES Depreciation 250, ,625 3,045,156 2,679, ,640 14% Shop operation expenses 441, ,275 6,132,657 6,069,687 62,970 1% Parts sales expenses 53,771 42, , ,595 5,976 1% Fuel sales expenses 3,493 4,647 11,609 28,157 (16,548) (59%) General and administration expenses 119, ,549 1,085,218 1,191,093 (105,875) (9%) Total operating expenses 868, ,820 10,850,211 10,538, ,163 3% Operating income (loss) (204,674) (201,262) (1,878,594) (1,809,948) (68,646) 4% NONOPERATING REVENUES (EXPENSES) Interest earned on pooled investments: Operating Fund 3,095 9,480 15,240 19,250 (4,010) (21%) ʹ Capital Outlay Fund 6,778 37,144 65,036 97,439 (32,403) (33%) Gain(loss) on disposal of capital assets (297) (1,493) (1,092) (401) 37% Cash proceeds from sale of capital assets 15,300 70, ,188 (188,325) (73%) Miscellaneous nonoperating income (expense) 4,200 (2,635) 2,803 (682) 3,485 (511%) Total nonoperating revenues 13,776 59, , ,103 (221,654) (59%) CHANGE IN NET POSITION Income (loss) before contributions/transfers (190,898) (141,973) (1,726,145) (1,435,845) (290,300) 20% Contribution for purchase of capital assets 182, ,662 1,927,700 3,413,558 (1,485,858) (44%) Contribution from other funds 60,810 60,810 N/A Transfers from (to) other funds vehicles (960,608) 960,608 (100%) Change in net position $ (8,678) $ 673, ,365 1,017,105 (754,740) (74%) Total net position beginning 23,847,078 22,829,973 1,017,105 4% Total net position ending $ 24,109,443 $ 23,847,078 $ 262,365 1% These statements should be read in conjunction with the Notes to the Financial Statements contained in the City of Tacoma s appropriate Comprehensive Annual Financial Report (CAFR). 11

14 City of Tacoma Public Works Department Fleet Services Division Statements of Cash Flows (Unaudited) Year to Date December Increase (Decrease) CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 9,769,315 $ 7,895,851 $ 1,873,464 Payments to suppliers (3,395,642) (3,136,289) (259,353) Payments to employees (4,707,743) (4,474,790) (232,953) Net cash provided (used) by operating activities 1,665, ,772 1,381,158 CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES Contribution from other funds 60,810 60,810 Net cash provided (used) by noncapital and related financing 60,810 60,810 activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (2,756,954) (4,004,833) 1,247,879 Cash proceeds from sale of capital assets 70, ,188 (188,325) Capital assets transferred from (to) other funds (960,608) 960,608 Contribution in aid of capital assets 1,927,700 3,413,558 (1,485,858) Net cash provided (used) by capital and related financing activities (758,391) (1,292,695) 534,304 CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends received 80, ,689 (36,413) Net cash provided (used) by investing activities 80, ,689 (36,413) Net increase (decrease) in cash and equity in pooled investments 1,048,625 (891,234) 1,939,859 Cash and equity in pooled investments beginning 3,786,588 4,677,822 (891,234) Cash and equity in pooled investments ending $ 4,835,213 $ 3,786,588 $ 1,048,625 These statements should be read in conjunction with the Notes to the Financial Statements contained in the City of Tacoma s appropriate Comprehensive Annual Financial Report (CAFR). 12

15 City of Tacoma Public Works Department Fleet Services Division Statements of Cash Flows (Unaudited) Year to Date December Increase (Decrease) Reconciliation of cash and equity in pooled investments to balance sheet: Cash and equity in pooled investments in Operating Fund $ 1,098,042 $ 808,174 $ 289,868 Cash and equity in pooled investments in Capital Outlay Fund 3,737,171 2,978, ,757 $ 4,835,213 $ 3,786,588 $ 1,048,625 Reconciliation of operating income to net cash provided (used) by operating activities: Operating income (expense) $ (1,878,594) $ (1,809,948) $ (68,646) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation expense 3,045,156 2,679, ,640 Change in assets and liabilities: Accounts receivable (2,309) (24,231) 21,922 Prepaid expenses (2,834) (2,354) (480) Supplies inventory 39,626 5,028 34,598 Due from other funds 800,309 (809,194) 1,609,503 Due to other funds (10,493) (9,252) (1,241) Accounts payable (278,677) 226,542 (505,219) Accrued wages and compensated absences (45,952) 27,489 (73,441) Accrued taxes payable (302) 1,176 (1,478) Total adjustments 3,544,524 2,094,720 1,449,804 Net cash provided (used) by operating activities $ 1,665,930 $ 284,772 $ 1,381,158 These statements should be read in conjunction with the Notes to the Financial Statements contained in the City of Tacoma s appropriate Comprehensive Annual Financial Report (CAFR). 13

16 14 (This page intentionally left blank.)

17

18 The City of Tacoma does not discriminate on the basis of disability in any of its programs, activities, or services. To request this information in an alternative format or to request a reasonable accommodation, please contact the City Clerk s Office at (253) TTY or speech to speech users please dial 711 to connect to Washington Relay Services.