CITY OF LAKE FOREST PARK

Transcription

1 CITY OF LAKE FOREST PARK BALLINGER WAY NE LAKE FOREST PARK, WA Tel (206) cityoflfp.com ANNUAL FINANCIAL REPORT Unaudited Draft March 15, 2018 General Government, Utilities, Capital, Enterprise, and Fiduciary Funds

2 Contents Finance Director s Transmittal Letter 2 State Required Schedules Fund Resources and Uses Arising from Cash Transactions 6 Fiduciary Fund Resources and Uses Arising from Cash Transactions 9 Schedule of Liabilities 10 Notes to Financial Statements 11 Appendix Budget Monitoring Dashboard, December 31, 20 Budget Monitoring, December 31, 21 General Fund Revenue by Type Analysis 22 Capital and Enterprise Fund Revenue Analysis 22 Ending Fund Balance Analysis 23 1

3 Mayor Jeff R. Johnson Ballinger Way NE Lake Forest Park, WA Telephone: Fax: Councilmembers Tom French Phillippa M. Kassover Mark Phillips E. John Resha III Semra Riddle Catherine Stanford John A. E. Wright March 15, 2018 Mayor Johnson and City Councilmembers, I am pleased to present the unaudited City of Lake Forest Park Annual Report Draft (the Draft). The draft includes the reports, schedules, and notes required by Washington Statute in a format that is consistent with the Budgeting, Accounting, and Reporting System ( BARS ) manual, plus an appendix containing supplemental information and analysis. The supplemental information was developed to provide additional insight into the financial operations of the City of Lake Forest Park (the City). The supplemental information is presented in a format that differs from the format prescribed by the BARS manual in the following ways: Fund Presentation. The BARS manual requires that several of the City s funds be consolidated for annual reporting requiring elimination of transactions between consolidated funds. The information presented in the appendix presents funds as adopted in the budget and is not consolidated. Comparative Presentation. The BARS manual prescribes single year presentation for financial reporting. The General Fund Revenue by Type and Capital and Enterprise Fund Revenue Analyses contained in the appendix are comparative, presenting 2016 and. The information and analysis contained in the appendix will not be audited by the State Auditor s Office during the annual audit and as such will not be included with the final audited report. The audit of the annual report will begin later this year and the audited report will be issued soon thereafter. It is not unusual for minor adjustments to be made during the audit; any such adjustment will be included in the final audited report. Staff will publish the audited report for the Mayor, City Council, and community as soon as the report is issued by the State Auditor s Office. Also, it should be noted that the City recently moved to a true biennial budget from the prior practice of adopting two one-year budgets with a single legislative action every two years. The change to a true biennial budget complicates the comparison of individual year financial results to budgeted amounts. Some of the reporting in the appendix has been updated since the 2016 report in response to the move to a true biennial budget and to enhance the usefulness of the information presented. 2

4 Financial Results General Fund Revenues General Fund revenues results were mixed. Taken as a whole, General Fund revenues increased at approximately 3.5 percent in, exclusive of two extraordinary items: traffic safety camera revenue and passport revenue. Traffic safety camera revenue beat 2016 revenues by nearly forty-percent; passport revenue was up nearly fifty-percent compared to the prior year. Combined, these two extraordinary items exceeded budgeted revenue by more than $200,000. Expenditures General Fund expenditures grew at approximately 4.5 percent. Contributing to the expenditure growth are a number of charges for professional services associated with development activity and studies. These items are not likely to be reoccurring, but do affect the overall rate of expenditure growth. While the precise comparison of single year results to budgeted amounts is complicated by our recent move to a true biennial budget, actual General Fund expenditures appear to be below budgeted amounts. The adopted budget accounts a modest current year General Fund deficit, but when the books were closed for the General Fund had realized a surplus. Staff is hopeful that the actual financial results for the biennium will be a small surplus due to the better than expected revenue and expenditure performance and control, respectively. Street and Capital Funds Street and capital fund revenues performed well in and are generally on track to meet or exceed budgeted amounts for the biennium. One exceptional performer was the Street Fund which experienced a nearly 7 percent increase in revenue compared to 2016, the largest contributor to this increase was right-of-way permit revenue which was up 17 percent over the prior year. Real Estate Excise Tax (REET) also performed well and is trending above budgeted amounts for the biennium, REET receipts were only slightly below the historic high experienced in The street and capital funds expenditure trend is consistent with budgeted amounts for the biennium. Utilities, Wastewater and Surface Water Utility revenues increased at a modest pace in. The revenue increase was generally consistent with the inflationary adjustment included in the budget, plus additional revenue from new connections/service primarily in the Southern Gateway of the City. Utility expenditures are consistent with the budget and unremarkable. Enterprise and Internal Service Funds Enterprise and internal service funds revenues are most often predictable and that was the case in. Notwithstanding the timing of receipts for revenue in the Public Works Contract Fund, revenues and expenditures in these funds were consistent with prior year results after accounting for inflation. The activity in these funds was unremarkable in. 3

5 Conclusion The Annual Report is further evidence that was a great year for the City. Revenue performance was strong for all significant funding sources and departments did a great job of controlling expenditure growth. Ending fund balances in each of the City s funds exceeded minimum fund balance targets positioning the City well for the future. The continued excellent financial health of the City is a testament to the good stewardship of the City s resources by the Mayor, City Council, and staff and should be a source of pride for the community. Respectfully, Chris Bothwell Finance Director 4

6 STATE REQUIRED SCHEDULES 5

7 City of Lake Forest Park Fund Resources and Uses Arising from Cash Transactions For the Year Ended December 31, Total for All Funds (Memo Only) 001 General Fund 101 Street Fund 104 Transportation Benefit District Beginning Cash and Investments Reserved Unreserved 388 / 588 Prior Period Adjustments, Net Revenues 310 Taxes 320 Licenses and Permits 330 Intergovernmental Revenues 340 Charges for Goods and Services 350 Fines and Penalties 360 Miscellaneous Revenues Total Revenues: Expenditures 510 General Government 520 Public Safety 530 Utilities 540 Transportation 550 Natural and Economic Environment 560 Social Services 570 Culture and Recreation Total Expenditures: Excess (Deficiency) Revenues over Expenditures: Other Increases in Fund Resources , 596 Debt Proceeds 397 Transfers-In 385 Special or Extraordinary Items 386 / 389 Custodial Activities 381, 395, 398 Other Resources Total Other Increases in Fund Resources: Other Decreases in Fund Resources Capital Expenditures , 599 Debt Service 597 Transfers-Out 585 Special or Extraordinary Items 586 / 589 Custodial Activities 581 Other Uses Total Other Decreases in Fund Resources: Increase (Decrease) in Cash and Investments: Ending Cash and Investments Reserved Unreserved Total Ending Cash and Investments 9,054, , ,522 3,576,059 3,311, ,019 1, ,105,519 5,781, ,959 1,278, , ,013-1,466, , ,243-6,686, , ,455,926 1,455, ,540 63,445 7,707 3,670 18,151,067 9,046, , ,629 4,454,129 3,136,274 79,266 2,103 3,904,966 3,904, ,687,117 1, ,329,224 16, , ,715 1,641, , ,438 3, , , ,307,293 8,251, , ,818 3,843, ,245 61, , , ,616 15, , ,792 15, ,643,941 9, , ,764 11,055 10, , ,776,772 20,521 10, , ,342 51, ,811 9,060, , ,333 4,408,202 4,103, ,468,344 4,103, , ,333 The accompanying notes are an integral part of this statement. 6

8 City of Lake Forest Park Fund Resources and Uses Arising from Cash Transactions For the Year Ended December 31, 202 PW Facility Bond Fund 301 Capital Improvement Fund 302 Transportation Capital Fund 303 Capital Facilities Maintenance Beginning Cash and Investments Reserved Unreserved 388 / 588 Prior Period Adjustments, Net Revenues 310 Taxes 320 Licenses and Permits 330 Intergovernmental Revenues 340 Charges for Goods and Services 350 Fines and Penalties 360 Miscellaneous Revenues Total Revenues: Expenditures 510 General Government 520 Public Safety 530 Utilities 540 Transportation 550 Natural and Economic Environment 560 Social Services 570 Culture and Recreation Total Expenditures: Excess (Deficiency) Revenues over Expenditures: Other Increases in Fund Resources , 596 Debt Proceeds 397 Transfers-In 385 Special or Extraordinary Items 386 / 389 Custodial Activities 381, 395, 398 Other Resources Total Other Increases in Fund Resources: Other Decreases in Fund Resources Capital Expenditures , 599 Debt Service 597 Transfers-Out 585 Special or Extraordinary Items 586 / 589 Custodial Activities 581 Other Uses Total Other Decreases in Fund Resources: Increase (Decrease) in Cash and Investments: Ending Cash and Investments Reserved Unreserved Total Ending Cash and Investments 437 1,064,702 1,030, , , , , , , ,651 8,682 1, , ,466 1,960-5,669 28,411 5, , , , ,064 5, , ,402 (3,894) 63, , , , , ,000-1,758, ,234 40,552 64, , ,334 1,908, ,234 40,552 (437) (696,466) (376,832) 105, , , , , , ,577 7

9 City of Lake Forest Park Fund Resources and Uses Arising from Cash Transactions For the Year Ended December 31, 401 Sewer Utility Fund 403 Surface Water Capital Fund 450 PW Contract Fund 501 Replacement Fund Beginning Cash and Investments Reserved Unreserved 388 / 588 Prior Period Adjustments, Net Revenues 310 Taxes 320 Licenses and Permits 330 Intergovernmental Revenues 340 Charges for Goods and Services 350 Fines and Penalties 360 Miscellaneous Revenues Total Revenues: Expenditures 510 General Government 520 Public Safety 530 Utilities 540 Transportation 550 Natural and Economic Environment 560 Social Services 570 Culture and Recreation Total Expenditures: Excess (Deficiency) Revenues over Expenditures: Other Increases in Fund Resources , 596 Debt Proceeds 397 Transfers-In 385 Special or Extraordinary Items 386 / 389 Custodial Activities 381, 395, 398 Other Resources Total Other Increases in Fund Resources: Other Decreases in Fund Resources Capital Expenditures , 599 Debt Service 597 Transfers-Out 585 Special or Extraordinary Items 586 / 589 Custodial Activities 581 Other Uses Total Other Decreases in Fund Resources: Increase (Decrease) in Cash and Investments: Ending Cash and Investments Reserved Unreserved Total Ending Cash and Investments 3,779,534 1,498, , ,089-16, , , ,330,071 1,179, , ,805 37,878 16,367 2,796 6,250 3,409,295 1,632, , , ,938 94, , ,339 2,433, , , , ,566,282 1,043, , , , ,259 69, , , ,906-14,500-75, ,192 9, ,327 3,099 29, , ,025 26,634 29,034 75,989 (13,012) 562,625 40, ,807 3,766,522 2,060, , ,874-3,766,522 2,060, , ,824 8

10 City of Lake Forest Park Fiduciary Fund Resources and Uses Arising from Cash Transactions For the Year Ended December 31, 308 Beginning Cash and Investments 388 & 588 Prior Period Adjustment, Net Additions Deductions Net Increase (Decrease) in Cash and Investments: 508 Ending Cash and Investments Total for All Funds (Memo Only) Agency 193, , ,008,663 2,008,663 1,991,980 1,991,980 16,682 16, , ,921 The accompanying notes are an integral part of this statement. 9

11 Schedule 9 ID. No. Description Maturity/Payment Due Date City of Lake Forest Park SCHEDULE OF LONG-TERM DEBT For the Year Ended December 31, (1) (2) (3) (4) BARS Code BARS Code for Additions Reductions Redeeming Redemption of Fund Number Debt Only Beginning Balance 01/01/17 Ending Balance Debt 12/31/17 (1)+(2)-(3) GO Bond - Public Works Trust Fund Loan Repayment (7/13/99) 12/31/18 17, , , GO Bond PW Facility (10/2/02) - General Fund /01/17 12, , GO Bond PW Facility (10/2/02) - Street Fund /01/17 9, , GO Bond PW Facility (10/2/02) - Public Works Contract Fund /01/17 28, , GO Bond PW Facility (10/2/02) - Sewer Utility Fund /01/17 3, , GO Bond PW Facility (10/2/02) - Surface Water Uitlity Fund /01/17 9, , GO Bond - Public Works Trust Fund Loan Repayment (5/23/05) 05/23/25 2,156, , ,916, Revenue Bond - Ronald PWTF (12/16/02) 01/30/19 22, , , Revenue Bond - Ronald Assumption (12/16/02) 12/01/17 66, , Net Pension Liability 12/31/17 2,906, , ,281, Compensated Absences 12/31/17 571, , ,836 Combination of funds (001, 101, 302, 401, 403, 450) 711,292 TOTAL $ 5,803,572 $ 692,560 $ 1,563,115 $ 0 $ 4,933,018 10

12 City of Lake Forest Park Notes to Financial Statements For the Year Ended December 31, Note 1 - Summary of Significant Accounting Policies The City of Lake Forest Park was incorporated on June 21, 1961 and operates under the laws of the state of Washington applicable to an optional Municipal Code City with a Mayor-Council form of government. The City of Lake Forest Park (hereinafter referred to as the City ) is a general purpose local government and provides public safety, public works, planning and building, parks, and human services. The City reports financial activity in accordance with the Cash Basis Budgeting, Accounting and Reporting System (BARS) Manual prescribed by the State Auditor s Office under the authority of Washington State law, Chapter RCW. The BARS Manual prescribes a financial reporting framework that differs from generally accepted accounting principles (GAAP) in the following manner: Financial transactions are recognized on a cash basis of accounting as described below. Component units are required to be disclosed, but are not included in the financial statements. Government-wide statements, as defined in GAAP, are not presented. All funds are presented, rather than a focus on major funds. The Schedule of Liabilities is required to be presented with the financial statements as supplementary information. Supplementary information required by GAAP is not presented. Ending balances are not presented using the classifications defined in GAAP. A. Fund Accounting Financial transactions of the government are reported in individual funds. Each fund uses a separate set of self-balancing accounts that comprises its cash and investments, revenues and expenditures. The government s resources are allocated to and accounted for in individual funds depending on their intended purpose. Each fund is reported as a separate column in the financial statements. The following fund types are used: GOVERNMENTAL FUND TYPES: General Fund This fund is the primary operating fund of the government. It accounts for all financial resources except those required or elected to be accounted for in another fund. Special Revenue Funds These funds account for specific revenue sources that are restricted or committed to expenditures for specified purposes of the government. 11

13 Debt Service Funds Debt service funds account for the financial resources that are restricted, committed, or assigned to expenditures for principal, interest and related costs on general long-term debt. Capital Projects Funds These funds account for financial resources which are restricted, committed, or assigned for the acquisition or construction of capital facilities or other capital assets. PROPRIETARY FUND TYPES: Enterprise Funds Enterprise funds account for operations that provide goods or services to the general public and are supported primarily through user charges. Internal Service Funds These funds account for operations that provide goods or services to other departments or funds of the government on a cost reimbursement basis. FIDUCIARY FUND TYPES: Fiduciary funds account for assets held by the government in a trustee capacity or as an agent on behalf of others. Agency Funds These funds are used to account assets that the government holds on behalf of others in a custodial capacity. B. Basis of Accounting and Measurement Focus Financial statements are prepared using the cash basis of accounting and measurement focus. Revenues are recognized when cash is received and expenditures are recognized when paid. In accordance with state law the City also recognizes expenditures paid up to twenty days after the close of the fiscal year for claims incurred during the previous fiscal year. The twenty day period following year end is commonly referred to as the open period. C. Budgets The City adopts biennial appropriated budgets for all funds, except those funds held by the City in an agency capacity. Budgets are appropriated at the fund level. The budget constitutes the legal authority for expenditures. Biennial appropriations lapse at the end of the biennium. Biennial appropriated budgets are adopted on the same basis of accounting as used for financial reporting. The Final Adopted Expenditure Budget amounts in the following chart are two year 12

14 appropriations; Actual Expenditure amounts are for one year,. The appropriated and actual expenditures for the legally adopted budgets were as follow: Final Adopted Fund Expenditure Budget Actual Expenditures Variance General Fund 17,698,009 8,271,928 9,426,081 Street Fund 1,243, , ,969 Council Contingency Fund Transportation Benefit District Fund 402, , ,670 Budget Stabilization Fund City Hall Bond Fund Public Works Facility Bond Fund 64,334 64,333 - Capital Improvement Fund 2,412,342 1,958, ,145 Transportation Capital Fund 2,325,246 1,266,297 1,058,949 Facilities Maintenance Fund 340,567 46, ,162 Sewer Utility Fund 6,060,901 2,999,839 3,061,062 Sewer Capital Fund 424, ,302 Surface Water Utility Fund 2,321,902 1,078,817 1,243,085 Surface Water Capital Fund 680, , ,106 Sewer Bond Reserve Fund Public Works Trust Repayment Fund 505, , ,620 Public Works Contract Fund 1,756, , ,503 Replacement Fund 824, , ,770 Budgeted amounts are authorized to be transferred between departments within any fund; however, any revisions that alter the total expenditures of a fund, or that affect the number of authorized employee positions and/or salary ranges must be approved by the City s legislative body. D. Cash and Investments See Note 3, Deposits and Investments. E. Capital Assets Capital assets are assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year. Capital assets and inventory are expensed when purchased. F. Compensated Absences Vacation leave may be accumulated up to 240 hours and is payable upon separation or retirement. 13

15 Sick leave may be accumulated indefinitely for non-union employees. Teamster (Public Works Maintenance) employees may be accumulated up to 720 and up to 960 hours for Police Guild employees. Non-union employees on an annual basis can convert sick leave in excess of 480 hours to vacation at a rate of 25%. Teamsters employees receive cash payments for their sick leave balance in excess of 480 hours at retirement, the payout rate is $.25 on the dollar of the unused sick leave balance at retirement. Police Guild employees receive cash payments for their unused sick leave upon layoff (25%), retirement (50%), disability retirement (100%), and death (100%). Non-union employees sick leave balances eligible for conversion to vacation were calculated on Schedule 9 at 25% of the sick leave balance in excess of 480 hours. Police Guild compensated sick leave absences were calculated at the 50% retirement rate. Teamsters employees did not have balances qualifying for payout at year end. Payments are recognized as expenditures when paid. G. Long-Term Debt See Note 4, Debt Service Requirements. H. Risk Management The City of Lake Forest Park is a member of the Washington Cities Insurance Authority (WCIA). Utilizing Chapter RCW (self-insurance regulation) and Chapter RCW (Interlocal Cooperation Act), nine cities originally formed WCIA on January 1, 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 161 members. New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A one-year withdrawal notice is required before membership can be terminated. Termination does not relieve a former member from its unresolved loss history incurred during membership. Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general, automobile, police, errors or omissions, stop gap, employment practices and employee benefits liability. Limits are $4 million per occurrence in the self-insured layer, and $21 million in limits above the self-insured layer is provided by reinsurance. Total limits are $25 million per occurrence subject to aggregates and sublimits. The Board of Directors determines the limits and terms of coverage annually. Insurance for property, automobile physical damage, fidelity, inland marine, and boiler and machinery coverage are purchased on a group basis. Various deductibles apply by type of coverage. Property coverage is self-funded from the members deductible to $750,000, for all perils other than flood and earthquake, and insured above that to $300 million per occurrence subject to aggregates and sublimits. Automobile physical damage coverage is self-funded from the members deductible to $250,000 and insured above that to $100 million per occurrence subject to aggregates and sublimits. In-house services include risk management consultation, loss control field services, and claims and litigation administration. WCIA contracts for certain claims investigations, consultants for 14

16 personnel and land use issues, insurance brokerage, actuarial, and lobbyist services. WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined by an outside, independent actuary. The assessment covers loss, loss adjustment, reinsurance and other 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. A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The Board elects an Executive Committee and appoints a Treasurer to provide general policy direction for the organization. The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day to day operations of WCIA. I. Reserved Portion of Ending Cash and Investments Beginning and Ending Cash and Investments are reported as reserved when it is subject to restrictions on use imposed by external parties or due to internal commitments established by the City Council. When expenditures that meet restrictions are incurred, the City intends to use reserved resources first before using unreserved amounts. Reservations of Ending Cash and Investments consist of amounts reserved for street funding, debt repayment, capital and transportation improvement projects, capital facilities maintenance, utility operation and utility capital projects, and vehicle and equipment replacement. Note 2 - Property Tax The county treasurer acts as an agent to collect property tax levied in the county for all taxing authorities. Collections are distributed daily. Property tax revenues are recognized when cash is received by the City. Delinquent taxes are considered fully collectible because a lien affixes to the property after tax is levied. The City s regular levy for the year was $ per $1,000 on an assessed valuation of $2,612,925,677 for a total regular levy of $3,109,

17 Note 3 Deposits and Investments Deposits and Investments It is the City s policy to utilize the Washington State Local Government Investment Pool ( LGIP ) and the City s bank for the investment of cash surpluses. The interest on these investments is allocated to the various funds based on the month end balance of the fund s cash account. All deposits are covered by the Federal Deposit Insurance Corporation and/or the Washington Public Deposit Protection Commission. All deposits are insured, registered or held by the City or its agent in the government s name. Investments are reported at fair value. Investments by type at December 31, are as follows: Type of Investment City's Own Investment Investments Held by City as Agent Total Local Government Investment Pool 10,632,354-10,632,354 Opus Deposits 3,791, ,484 3,956,996 Note 4 Debt Service Requirements The accompanying Schedule of Long-Term Debt (09) provides more details of the outstanding debt and liabilities of the City and summarizes the City debt transactions for year ended December 31,. The methodology to report compensated absences on the Schedule of Liabilities was updated to include the employer costs associated with the calculated liability, an adjustment for this change is included in the Additions column. The debt service requirements for general obligation bonds and revenue bonds, including both principal and interest, are as follows: Year Principal Interest Total 2018 $ 255,836 $ 10,019 $ 265, ,978 8, , ,607 7, , ,607 5, , ,607 4, , ,821 7, ,009 Total $ 1,940,456 $ 43,689 $ 1,984,145 16

18 Note 5 Interfund Loans During a line of credit agreement was executed to utilize the temporary cash surpluses in one fund to provide temporary property acquisition funding while grant funding reimbursements were pending with the granting agencies and a permanent funding solution was selected for the remaining acquisition cost. The line of credit agreement requires that the line of credit is fully repaid by December 31, The following table displays interfund loan activity (line of credit activity) during : Borrowing Fund Lending Fund Balance at Balance at 1/1/ New Loans Repayments 12/31/ Capital Improvement Fund Sewer Capital Fund - 518, ,506 Note 6 - Pension Plans Substantially all the City s full-time and qualifying part-time employees participate in Public Employee s Retirement System or Law Enforcement Officers and Fire Fighters Plan administered by the Washington State Department of Retirement Systems, under cost-sharing multiple-employer public employee defined benefit and defined contribution retirement plans. The State Legislature establishes, and amends, laws pertaining to the creation and administration of all public retirement systems. The Department of Retirement Systems, 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 PO Box Olympia, WA Also, the DRS CAFR may be downloaded from the DRS website at At June 30, (the measurement date of the plans), the City s proportionate share of the collective net pension liabilities, as reported on the Schedule 09, was as follows: 17

19 Plan Allocation Percentage Liability (Asset) PERS % 57,605 PERS 1 UAAL % 1,146,458 PERS 2/ % 1,077,206 Net Pension Liability 2,281,270 LEOFF % (56,031) LEOFF % (757,463) Net LEOFF Assets (813,494) LEOFF Plan 1 The City also participates in LEOFF Plan 1. The LEOFF Plan 1 is fully funded and no further employer contributions have been required since June If the plan becomes underfunded, funding of the remaining liability will require new legislation. Starting on July 1, 2000, employers and employees contribute zero percent. LEOFF Plan 2 The City also participates in the LEOFF Plan 2. The Legislature, by means of a special funding arrangement, appropriates money from the state general fund to supplement the current service liability and fund the prior service costs of Plan 2 in accordance with the recommendations of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. This special funding situation is not mandated by the state constitution and could be changed by statute. Note 7 Other Disclosures Post-Employment Benefits The City of Lake Forest Park has a commitment to pay for post-employment benefits for retired employees that belong to LEOFF 1. These benefits include medical, dental, vision, nursing care, etc. Two retirees received benefits during the year. During, $3,466 was paid out for disability insurance and $34,822 was paid out for LEOFF1 benefits, for a total of $38,

20 APPENDIX 19

21 CityofLakeForestPark December31,BudgetMonitoringDashboard ForthepurposesofthisreportingthebudgetaryperiodisJanuary1,toDecember31,2018. Asofthedateofthisreportweareapproximately50% throughthebudgetaryperiod.greenshadingindicatesmeetingorexceeding budgetedperformance; yelow indicatesnotmeetingbudgetedperformanceatthistime. Percentages,whereshown,aretherelativeperiod-to-date(PTD)expenditurescomparedtothebudgetedamountsforthebudgetaryperiod. OperatingDepartments Department Building 44% CityCouncil 43% CivilServiceCommission 10% CrimeWatch 21% Detention/Jail Dispatch EngineeringOperations 55% 47% 39% EnvironmentalServices 28% Executive 47% Facilities 43% FinanceandIT 47% Legal 57% MunicipalCourt MunicipalServices 49% 49% Parks 37% Planning 53% Police ProsecutorandPublicDef. 47% PublicWorksContractOp. 48% SewerOperations StreetMaintenance 53% StreetOperations 42% SurfaceWaterUtilityOpe. 44% TrafficSafetyCamera 39% 49% 47% $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Period-to-DateAmount Non-OperatingDepartments RevenuebyFund Department Department Audit 58% CapitalImprovementFun. 95% CommunityPrograms 43% GeneralFundRevenue 50% Elections 50% PublicWorksContractRe. 51% EmergencyManagement 49% SewerUtilityRevenue 51% Memberships 52% StreetFundRevenue 58% PublicHealth 57% SurfaceWaterUtilityRev. 49% $0 $50,000 $100,000 $150,000 $200,000 TransportationCapitalRe. 44% Period-to-DateAmount $0 $5,000,000 $10,000,000 Period-to-DateAmount Capital Department Asphalt Overlay Big5Project Management Central Subarea Project Culvert Replacement Program Facilities Projects Parks Acquisition ParksProjects andredev. Pedestrian Capital Projects SafeHighways SewerCapital Project Projects $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 Value $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Budget PTD Budget PTD Budget PTD Budget PTD Budget PTD Budget PTD Budget PTD Budget PTD Budget PTD Budget PTD 20

22 CityofLakeForestPark December31,BudgetMonitoring ForthepurposesofthisreportingthebudgetaryperiodisJanuary1,toDecember31,2018. Asofthedateofthisreportweareapproximately50% throughthebudgetaryperiod. Percentagesshownonthisreportaretherelativeperiod-to-date(PTD)expenditurescomparedtothebudgetedamountsforthebudgetaryperiod. Department Budget PTD PTDPercent Building CityCouncil CivilServiceCommission CrimeWatch Detention/Jail Dispatch EngineeringOperations EnvironmentalServices Executive Facilities FinanceandIT Legal MunicipalCourt MunicipalServices Parks Planning Police ProsecutorandPublicDef. PublicWorksContractOp. SewerOperations StreetMaintenance StreetOperations SurfaceWaterUtilityOpe. TrafficSafetyCamera 39% 44% 42% 53% 49% 48% 47% 47% 53% 37% 49% 49% 57% 47% 43% 47% 28% 39% 47% 55% 21% 10% 43% 44% $430,800 $693,764 $295,107 $181,657 $2,480,786 $665,814 $174,105 $3,124,129 $526,909 $242,136 $597,429 $539,300 $169,776 $585,560 $193,729 $493,074 $6,255 $206,161 $124,594 $172,807 $3,183 $1,849 $71,933 $206,481 $1,093,750 $1,560,217 $698,970 $343,500 $5,051,249 $1,400,639 $367,195 $6,669,193 $991,398 $654,145 $1,228,358 $1,105,487 $300,000 $1,248,873 $445,929 $1,041,409 $22,000 $527,496 $266,670 $315,000 $15,000 $17,800 $166,991 $469,295 OperatingDepartments Department Budget PTD AsphaltOverlay Big5ProjectManagement CentralSubareaProject CulvertReplacementProg. FacilitiesProjects ParksAcquisitionandRed. ParksProjects PedestrianCapitalProjects SafeHighwaysProject SewerCapitalProjects $0 $323,377 $52,627 $0 $1,751,498 $0 $219,027 $40,969 $105,416 $574,244 $424,302 $635,000 $210,000 $35,000 $2,025,150 $2,000 $680,000 $250,000 $200,000 $834,000 Capital Department Budget PTD PTDPercent Audit CommunityPrograms Elections EmergencyManagement Memberships PublicHealth 57% 52% 49% 50% 43% 58% $3,437 $39,028 $44,034 $34,885 $187,238 $31,077 $6,000 $75,178 $90,000 $70,000 $437,540 $54,000 Non-OperatingDepartments Department Budget PTD PTDPercent CapitalImprovementFun. GeneralFundRevenue PublicWorksContractRe. SewerUtilityRevenue StreetFundRevenue SurfaceWaterUtilityRev. TransportationCapitalRe. 44% 49% 58% 51% 51% 50% 95% $635,890 $1,188,815 $629,963 $3,142,457 $895,482 $8,782,516 $743,225 $1,433,998 $2,404,663 $1,095,150 $6,160,143 $1,765,153 $17,698,009 $779,075 RevenuebyFund 21

23 GeneralFundRevenuebyTypeAnalysis Name CentralServices (GeneralFund) FeesandOther (GeneralFund) FranchiseFees(General 2016 Fund) Grants(GeneralFund) 2016 Licenses(GeneralFund)2016 Permits(GeneralFund)2016 Taxes(GeneralFund) 2016 TrafficSafetyCamera (GeneralFund) 2016 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 Revenue TrafficSafety Camera(GeneralFu. Taxes(General Fund) FeesandOther (GeneralFund) Grants(General Fund) Licenses(General Fund) CentralServices (GeneralFund) Permits(General Fund) FranchiseFees (GeneralFund) ,622 5,396, ,090 16,363 78, , , ,569 1,340,468 5,604, ,988 45,913 97, , , ,609 Increase/Decrease 371, , ,898 29,550 18,964 6,170-8,129-37,960 CapitalandEnterpriseFundRevenueAnalysis Name CapitalImprovement Revenue 2016 PubicWorksRevenue 2016 ReplacementFund Revenue 2016 SewerUtilityRevenue 2016 StreetsRevenue 2016 SurfaceWaterRevenue 2016 TransportationBenfit DistrictRevenue 2016 TransportationCapital 2016 Revenue $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Revenue 2016 CapitalImprovement Revenue PubicWorksRevenue 471, ,719 ReplacementFund Revenue 529,892 Name SewerUtility Revenue 2,983,138 StreetsRevenue SurfaceWater TransportationBenfit Revenue DistrictRevenue 1,074,149 Transportation CapitalRevenue 1,174, , , ,375 3,142, ,962 1,188, , , , ,324 22

24 FundName Capital Improvement Fund GeneralFund PublicWorks ContractFund Replacement Fund SewerCapital Fund SewerUtility Fund StreetFund SurfaceWater CapitalFund SurfaceWater UtilityFund Transportation BenefitDistrict Transportation CapitalFund $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 ActualEndingFundBalance EndingFundBalanceAnalysis NOTES Onlythosefundswithoperationshaveaminimum fundbalancetarget. Blueshadingindicatesanendingfundbalancethatisinexcessofthetarget. ActualEFB Target FundName Capital Improvement. GeneralFund PublicWorks ContractFund Replacement Fund SewerCapital Fund SewerUtility Fund StreetFund SurfaceWater CapitalFund SurfaceWater UtilityFund Transportatio nbenefitdis. Transportatio ncapitalfund Actual. Target 34, , , , , ,122, , , , , ,119, ,824 71, ,519 1,449,518 3,103, ,236 EndingFundBalanceAnalysis 23