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"A colorful past, a bright future"

Quarterly Financial Report

Second Quarter 2015

Second Quarter 2015 Financial Report (This report contains un-audited financial information as of July 27, 2015)

Table of Contents

Section Page

I. Executive Summary 1 II. Economic Report 2 III. Financial Results 10 IV. Outstanding Debt 24 V. Investments 25 VI. Interfund Loans 26

Attachments

A Expenditure Summary by Fund 27 B Revenue Summary by Fund 29 C Outstanding Debt 31 D Investment Portfolio Tables 33

- - - - - For additional information on the City’s financial performance please contact Natasha Ramras in the City’s Financial & Management Services Department at 360-487-8484.

I. Executive Summary

The national economy continues to improve. The U.S. Gross Domestic Product grew during the second quarter of the year at an estimated rate of 2.3%. The GDP for the first quarter was revised from the negative 0.2 percent to a positive 0.6 percent. Recent reports indicate strong residential investment and personal consumption, boosted by auto sales, offset by slower federal governmental spending. The national unemployment rate continued to decline during the first two quarters of 2015, reaching 5.3%, significantly below the 7.4% rate experienced at the end of 2013.

City of Vancouver General Fund revenues through the second quarter of 2015 totaled $70.3 million, or 52% of the forecast for the year, exceeding last year’s June collections by $1.4 million. Tax revenues received in 2015 exceed those through the second quarter of 2014 by approximately $2.0 million, mostly due to stronger sales and property tax collections, offset by lower than forecasted revenues in taxes on privately owned utilities. Expenditures in the General Fund totaled $62.7 million, or 47% of the budget for the year, running a little higher than anticipated. In 2014 during a comparable period of time 40% of the budget was spent. With revenues coming in 2.4% higher than forecasted, it is likely that the revenues might be sufficient to cover the expenditures for the year and the fund balance in the General fund will likely not need to be utilized to fund operations in 2015.

Following is detailed information on the main revenue sources of the General Fund. Cumulatively, the seven major sources of revenue listed on the chart below represent more than 87% of the total forecasted revenues in the City’s General Fund.

Note: Utility tax revenue above includes the tax on Solid Waste, Charges for Services exclude the Business License revenue.

Second Quarter Financial Report City of Vancouver 1

Revenues in major city funds through the second quarter of 2015 were either on track or exceeding expectations. Expenditures in other funds were on track as well. The General Fund operating cash balance was $47.9 million at the end of June 2015. II. Economic Report The national economy has continued to improve. Many economic indicators continue to show signs of improvement. The unemployment rate continues to decline, the housing sector is showing a consistent level of activity and higher prices than in the prior four years, but the annual rate of increase has cooled to a 2.5% annual increase, and consumer confidence continues to improve. The following is specific information related to some of the major national economic indicators, beginning with Gross Domestic Product. The annual rate of growth of Gross Domestic Product in the second quarter of 2015 is estimated to be 2.3%, according to a preliminary estimate released by the Bureau of Economic Analysis, up from a revised to 0.6% growth rate during the first quarter of 2015.1 The increase in GDP in the second quarter was accounted for by personal consumer spending, exports, state and local government spending and residential fixed investment. These increases were partially offset by the federal government spending and private inventory investment. Business spending dropped sharply as did investments in structures. A strong dollar continued to hurt U.S. business abroad.

The national seasonally adjusted unemployment rate has been trending down since February of 2013, reaching 5.3% in June of 2015. The numbers of unemployed workers have declined slightly since the end of 2014, reaching an estimated 8.3 million nation-wide2.

1http://www.bea.gov/newsreleases/national/gdp/gdphighlights.pdf, Bureau of Economic Analysis. 2 http://www.bls.gov/news.release/pdf/empsit.pdf, July 2, 2015, Bureau of Labor Statistics.


Data Source: www.bls.gov

The March 2015 press release from the Federal Open Market Committee has downgraded the pace of increase in economic activity from “solid” to “moderate”. The Committee confirmed that “Labor market conditions improved further, with strong job gains and a lower unemployment rate. . .Household spending is rising moderately; recent declines in energy prices have boosted purchasing power. Business fixed investment is advancing, while the recovery in the housing sector remains slow and export growth has weakened.”3

One of the major measures of consumer confidence is the Conference Board’s compiled Index of Consumer Confidence. The Index is based on consumer perceptions of current business and employment conditions, as well as consumer expectations for the following six months. The level of consumer confidence is associated with consumer anticipation of future developments in the economy, and is utilized as an indicator of the likely general direction of consumer spending in the coming months. The June of 2015 reading indicates that during the second quarter of 2015, the index of consumer confidence remained at the 101.4 level, unchanged from the end of the first quarter reading. “Consumer confidence improved further in June, following a modest gain in May,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Over the past two months, consumers have grown more confident about the current state of business and employment conditions. In addition, they are now more optimistic about the near-term future, although sentiment regarding income prospects is little changed. Overall, consumers are in considerably better spirits and their renewed optimism could lead to a greater willingness to spend in the near-term.”

3 FOMC Press Release, March 18, 2015 http://www.federalreserve.gov/newsevents/press/monetary/20150128a.htm


The US Conference Board tracks economic indicators in ten different areas to assess the health of the economy and to evaluate the direction of economic development in the nearest future. The cumulative product of the ten indicators is called the US Leading Economic Index (LEI). The US LEI has been on an increasing trend since early 2009, increasing by 2% in the second quarter alone, reaching an index of 123.6 (2010=100).

According to Ataman Ozyildirim, Economist at the Conference Board: “The upward trend in the US LEI seems to be gaining more momentum with another large increase in June pointing to continued strength in the economic outlook for the remainder of the year. Housing permits are the interest rate spread drove the latest gain in the LEI, while labor market indicators such as average workweek and initial claims remained unchanged.”4 The graphic representation of the Conference Board Leading Economic Index for the U.S. since 1999 is shown in the following graph.

4 The Conference Board US Business Cycle Indicators, US Leading Economic Indicators for the U.S. Increases, April 17, 2015, http://www.conference-board.org/pdf_free/press/PressPDF_5433_1429261211.pdf


State and Local Economy The Washington Economic and Revenue Forecast Council’s June 2015 Economic and

Revenue Forecast stated that the Washington economy “…is expanding at a solid pace. In recent months Washington employment has performed as expected…Washington personal income growth was stronger than previously assumed in 2014… The forecast for housing permits and construction employment is also higher than projected in February.”5 The outlook for improvement in the state’s economy remains positive and the expectation of the Washington economy to continue to outperform the U.S. economy remains.

State revenue collections are coming in cumulatively above forecast by 0.5%.

At the national level, housing data has been very strong in the second quarter of 2015. Strong demand for multi-family units drove housing starts and permits data, overshadowing less strength for the single-family home category. The pace through December of 2014 indicated a 5.3% increase on a year-over-year basis. The pace has increased to an annualized rate of 9.8% in June of 2015, reflecting a 29.4 percent surge in the multi-family component and a decline of 0.9% in the single-family component.6 Housing starts measure construction of residential units per month. The graph below shows national data.

The number of residential permits is the local data equivalent for housing starts. In 2012 through 2013, the City saw a significant increase in the number of residential units permitted and their respective valuation. The 2014 data on single family residential houses permitted shows that only 189 were permitted during the year. During the first two quarters of 2015 a total of 177 residential permits were issued with a total valuation of $17.9 million.

5 Washington State Economic and Revenue Forecast. June 2015, Volume XXXVIII, No. 2, p. 25 6 http://www.nasdaq.com/markets/us-economic-calendar.aspx


Similarly to the national trends, the City has been seeing an increase in the number of

multi-family units permitted within the city limits. The number of new multi-family units permitted in 2013 was 657, roughly double that of 2011 and 2012. In 2014, a total of 609 units were permitted, with a total valuation of $26.9 million. So far, a total 323 units were permitted in 2015 with a valuation of $28.1 million.

Activity level in the commercial sector has been strong. A total of 19 commercial projects were permitted with the total valuation of $81.9 million. Only three new commercial projects were permitted during the last quarter with a total valuation of $30.0 million.

Graphs representing both quarterly residential and commercial permit volumes and valuation can be found on the following page. The data was provided by the City’s Community and Economic Development Department.


Data provided by the Community and Economic Development Department, City of Vancouver.

The national inflation rate as measured by the U.S. Consumer Price Index for All Urban

Consumers (CPI-U) on a year over year basis came in at 0.1% in June, as reported by the U.S. Department of Labor. Inflation has been fluctuating between 1.5% and 2% annual estimated rates over the last 18 months. The graph below shows annualized inflation rate changes in both CPI and Core CPI (less food and energy). In the second quarter of 2015 increases in energy prices, food, airfares and tobacco were offset by a decline in hospital services costs and apparel. Core CPI has remained in the “just below a 2% annual rate” zone.

The local Portland-Vancouver metro inflation rate is published twice a year by the Bureau

of Labor Statistics. The metro inflation rate (CPI-U) for the 12 month period ending in


December of 2014 was 2.3%.7 The rate for the first six months of 2015 will be published in late August. The increase continues to be impacted largely by higher prices on shelter, electricity and food. Energy prices have increased by 0.9% over the 12 months period, mostly due to higher prices for electricity (7.2%), while gasoline prices declined 1.9% during the past year.

According to the Bureau of Labor Statistics, the city estimated unemployment rate at the end of June was at 6.7 percent, slightly higher than that at the county and Portland metro, 6.5 and 5.4 percent respectively. The local unemployment rate has generally been on a declining trend since early 2010.

Data provided by the Bureau of Labor Statistics

7 http://www.bls.gov/regions/west/news-release/consumerpriceindex_portland.htm


Home sales are cyclical. Typically, they increase in the second and third quarters of the year. Home prices continue to stabilize nationally and locally, according to the S&P’s Case-Shiller Home price Index. During the last twelve months, the prices have been consistently higher than those in the prior year by approximately 7.36%, indicating that locally the market has been on an upward swing.

S&P Case/Shiller Index, Portland Metro Area

Data source: S&P, www2.standardandpoors.com

Housing prices in Vancouver and in the Portland Metro area have been increasing since December of 2011. The median sale price in Vancouver is estimated at $242,000. The graph below represents changes in the median home price over time in Vancouver and the Portland Metropolitan Area. Housing prices in the local area have likely reached their peak and are anticipated to start showing signs of slowdown in the coming months.

Median Sale Prices: Vancouver, Clark County and Portland, OR.

Source of Data: Zillow


Zillow estimates Vancouver real estate market as healthy relative to other markets across the county. The Market Health index is based on up to 10 metrics including those capturing the past and projected evolution of home values, the prevalence of foreclosures, foreclosure re-sales, negative equity and delinquency among others. Vancouver market is rated at 7.4 out of 10 possible.

Zillow estimates that only 11.6% of all houses in Vancouver have negative equity, compared

to the 15.4% on the national basis. Approximately 4.6% of all house owners are delinquent of their mortgages, compared to 6% nation-wide.

Homes Foreclosed (Per 10,000)

Source of Data: Zillow

III. Financial Results

General Fund REVENUES

General Fund revenues in the second quarter of 2015 totaled $70.3 million, or 52% of the forecast, within historical averages and approximately $1.4 million higher than was collected during the first six months of 2014. If the trends continue, the General Fund is anticipated to collect 2.4% more in revenues than forecasted. Tax revenues received in 2015 exceed those through the second quarter of 2014 by approximately $2.0 million, mostly due to stronger sales and property tax collections, partially offset by lower than forecasted revenues in taxes on privately owned utilities. Following is detailed information on the main revenue sources of the General Fund. Cumulatively, the seven chief sources of revenue listed on the chart below represent more than 87% of the total forecasted revenues in the City’s General Fund.


Note: Utility tax revenue above includes the tax on Solid Waste, Charges for Services exclude the Business License revenue.

Property Tax

Property tax revenues are typically received during the second and fourth quarters of the

year. The amount of revenue is based on the assessed valuation and is estimated using the County Assessor’s data. Deviations from estimates in this revenue source are mostly related to the amount of new construction and delinquency rates.

By Council action, there was a 1% property tax levy increase for 2015 taxes. The total City of Vancouver levy rate in 2015 is $2.7996 per $1,000 of assessed value, which is applied to a total taxable value of approximately $15.8 billion.

The City experienced a 23.5% combined reduction in assessed valuation between 2009

and 2012. The reduction in assessed valuation resulted in an increase of the city’s property tax levy rate, but did not have any impact on the revenues. The City’s assessed valuation for 2014 has increased by 8.3%, and another 10.4% for 2015. With the recent increases in assessed valuation, the City has reached that in 2008, but remains 6.4% below the highest assessed valuation experienced in 2009.

A total of $24.7 million was collected through the second quarter of 2015 in property

taxes. Collections during the first two quarters of this year are above those in the first half of 2014 by approximately $800 thousand, largely due to a higher levy and the timing of payments.


Note: The dollar amounts have not been adjusted for inflation.

Sales Tax

The sales tax rate of 8.4% in the incorporated area is distributed as follows: 6.5% to the State, 0.5% for the City’s “basic” sales tax, 0.3% for the City’s “optional” sales tax, 0.2% for the City restricted to funding Public Safety, the County’s additional optional 0.1% for Law and Justice, 0.1% for addressing the region’s methamphetamine drug addiction and related crime, and 0.7% for C-TRAN.

A total of $16.3 million in sales tax revenue was received in the first half of 2015,

approximately $1.8 million more than revenue received in the first half of 2014. In 2013, the City’s collections finally caught up with those in the pre-recession time, year 2007, (without adjustment for inflation for the past six year period). The fastest growing categories of retail sales are auto sales, construction- related and general merchandise. If the trend continues through the end of the year, the city is likely to exceed the forecast of sales tax revenues by approximately $3.5 million by the end of the year.

Growth in taxable retail sales in the last several years was fueled by improving real estate

market, new construction and auto sales.


Taxes on Privately Owned Utilities Vancouver collects a 6% utility tax on electrical, natural gas and telephone services

provided within the incorporated area by entities other than the City. The City also charges cable franchise fees.

Utility tax on privately owned utilities generated $9.1 million in the first half of the year,

approximately $1.2 million below collections during the comparable period of time in 2014, mostly due to lower collections in the natural gas and electrical taxes. Due to an unseasonably warm weather experienced in the Pacific Northwest in 2014-2015, utilization of gas and electricity has been on the low end of historical spectrum. If the trend continues, revenues from the utility tax on private utilities will come short of forecast by approximately $900 thousand by the end of the year.

Natural gas tax revenues through the second quarter totaled $1.7 million, or 62% of the

forecast. Normally, approximately 70% of the revenue is received during the first half of the year, indicating that the natural gas revenue will be short of forecast by the end of the year by approximately $300 thousand. During the similar time period of 2014, $2.4 million in natural gas revenue was collected.

Telephone tax revenues in the second quarter of 2015 totaled $2.2 million, approximately $200 thousand below the second quarter of 2014 collections. The telephone tax revenue has been on a declining trend over the last several years. In 2014, the top five phone service providing companies contributed to the reduction – New Cingular, Qwest, Verizon, Cricket, and T-Mobile. If the trend continues through the end of the year, the revenue will be short of forecast by approximately $300 thousand.

A total of $4.2 million was collected in electrical tax revenue through the second quarter

of 2015, below the comparable 2014 collections by $300 thousand. The reduction in taxes was due to a very mild winter weather experienced by the Pacific Northwest last year. The forecast for 2015 had anticipated a slight decline in this revenue compared to 2014, but the actuals are coming in slightly below the anticipated level. If the trend


continues, collections will be short of forecast by the end of the year by approximately $400 thousand.

The revenue from cable franchise fees totaled $1.0 million through the second quarter of 2015, approximately $50 thousand higher than the comparable collections in 2014. If the trend continues, collections in the cable franchise fees will exceed the forecast by approximately $100 thousand.

Water, Sewer, Storm Water and Solid Waste Taxes

The City Utility tax on Water, Sewer and Storm Water utilities is currently set at 20%. Prior to 2010, the City charged a solid waste franchise fee for garbage collection services

to fund operations of the Solid Waste fund with a portion of the fees, equivalent to approximately a 12% tax rate, deposited into the General Fund for general use. In 2010, the franchise fee portion, (related to the general use), was converted to a utility tax of 20%.

Utility revenue on city owned utilities has been slowly increasing due to increases in customer base as well as the underlying rate increases. The underlying water utility rates were increased by 5% in 2013, 2014 and 2015. Storm water rates were increased by 5% in 2014 and 2015 and sewer rates increased by 2.5% in 2014 and 2015.

A total of $9.3 million was collected in taxes of City-owned utilities during the first two quarters of 2015, approximately $300 thousand higher than was collected in the first half


of 2014. If the trend continues, collections in utility tax on city-owned utilities will likely generate $300 thousand more by the year’s end, largely due to the current summer being one of the hottest summers in the Pacific Northwest in recent history.

In 2014, residential water revenues generated 80% of the total water user revenues, while residential sewer fee revenues made up 66% of the total sewer user revenues. Similar breakdown is anticipated in 2015.

Grant & Entitlement Revenues The City anticipates receiving $2.0 million in grants in 2015. The largest grants include a

grant in Vancouver Police Department (VPD) for replacement of the records management system, and the remainder of the COPS grant funding 10 new positions in VPD. There are large grants in the Community and Economic Development departments that have been underspent by the end of 2014 but the supporting appropriation was carried forward into the 2015-2016 biennium. Grants are frequently reimbursing the City for the expenditures incurred, so most of the revenue comes in the second through last quarters of the year.

Through the end of the second quarter, the City received $581 thousand in grant reimbursements, approximately 29% of the forecast for the year.

Charges for Goods and Services The largest program areas that generate fee revenue are the Development Review Services and Recreation programs. The forecast for the year anticipates $5.0 million to be received in these two categories.


Land Use and Other Planning Permits

During 2008, 2009 and 2010, the City experienced a significant decrease in both, the number of single family residential permits issued and in their valuation. The collections over 2011 through 2013 remained relatively flat. Year 2014 saw a significant, $200 thousand annual increase in land use fees. The trend continues into 2015.

During the 2015 collections in planning permits reached $516 thousand, approximately $200 thousand higher than revenues received during the first half of 2015 and 21% above forecast for the year.

Recreation Program Fees

A total of $2.4 million in recreation fees was collected through the second quarter of 2015, comparable to last year’s collections over the same time period. It appears that the activity in 2015 continues at the level experienced over the last three years.

The forecast for the year has anticipated an increase in recreation revenue of $450 thousand in 2015 over 2014. It is highly likely that increase will not happen and recreation revenues will fall short of forecast by approximately $400 thousand by the end of the year.

EXPENDITURES

General Fund expenditures in the second quarter of 2015 were $62.7 million, or 46% of the budget, a little high by historical measures. One of the main changes in the 2015-2016 budget in the General Fund was the creation of a separate fund for internal services departments – Finance, Human Resources, Information Technology and General Services. These departments are recovering the cost of providing services in their areas from all funds and departments of the City. As a result, the budget in the General Fund has been reduced in proportionality to the indirect cost plan revenue paid by non-General Fund departments of the city. Because of this change, comparison with prior year’s information is meaningful by department, but not in total in the General Fund.

By the end of June, General Fund departments spent 48.2% of their budgets for the year. Historically, the norm has been in the 42%-45% range.

Expenses vs. budget by category within the General Fund are shown in the chart below.


Salaries and benefits expenditures totaled $22.9 million through June of 2015, approximately $0.7 million higher than comparable expenditures in 2014. Expenditures in salaries and benefits were at 53% of the annual budget at the end of June. Overtime spending in VPD is very high in 2015.

General Fund expenditures in the supplies and services category were $4.6 million, approximately $0.7 million lower than those in 2014.

The intergovernmental category of expenditures includes payments by the City to other jurisdictions, based on inter-local agreements in place and internal transfers supporting other funds, including the debt fund, fire fund, and street fund. Expenditures in the Intergovernmental category reached $29.3 million in the first two quarters of 2015, $5.3 million higher than in 2014, due to the timing of the General Fund transfer to the Fire Fund and the Internal Services Fund.

Cash Balance

The General Fund operating cash balance was $47.9 million at the end of the second

quarter 2015. This is $4.2 million lower than the cash balance at the end of June 2014. The balance includes set asides for the carriedforward appropriation items.

The General Fund emergency reserve was $10.7 million at the end of June 2015, compared to $10.5 million in June 2014. Council updated the financial policy related to the emergency reserve balance in 2012. In previous years, the balance was based on 7% of the prior year’s General Fund revenues. The new policy requires the emergency reserve balance to equal 7% of actual external revenues in the preceding fiscal year for


the General, Street, and Fire Funds. These funds are intended to be used only for extraordinary events, such as natural disasters.

Fund Balance The cash balance represents a snapshot on a particular date, while the fund balance

factors in revenues that are anticipated to be received by the end of the year and expenditures that are anticipated to happen through the end of the year.

The total fund balance in the General Fund at the end of 2014 was $61.6 million. A portion of the fund balance estimated at $0.2 million represents the long term notes receivable and capital assets held for resale. The remaining balance is composed of the Restricted, Committed Assigned and Unassigned balances. The Restricted balance of $0.2 million represents the grant revenue received in advance of expenditures in VPD. The Committed balance of $43.1 million represents reserves in accordance with the City Financial Policies: the City Emergency reserve of $10.5 million, Revenue Stabilization reserve of $3.4 million, reserve restricted for capital purposes of $0.9 million and the working capital of $28.3 million. The working capital is required to ensure sufficient cash flow in the fund. The balance pays for the ongoing operations of the General Fund when the incoming seasonal revenues are not sufficient to cover the expenses and eliminate the need for short-term borrowing. The Assigned reserve of $4.2 million represents funding of 50% of accrued compensated absences. The remaining portion of the balance of $13.9 million is anticipated to be unassigned at the end of 2014.

Street Fund Expenditures in the Street Fund through June were $6.3 million, or 32% of the budget, $1.8

million higher than comparable expenditures in 2014. The second quarter revenues (excluding a budgeted general fund transfer) totaled $3.1

million, $300 thousand higher than comparable collections in 2014. This fund’s largest sources of revenue are state shared revenues from the motor vehicle fuel tax (MVFT), real estate excise tax (REET), and a transfer from the General Fund. General Fund transferred $10 million dollars to support operations of the fund in 2014.

Motor Vehicle Fuel Tax (MVFT) revenues were $1.6 million by June of 2015, comparable to

the 2014 collections. This revenue source is a set tax per gallon that does not depend on the price of gasoline. The significant increase in gasoline prices nation-wide that were experienced over the past two years resulted in declining gasoline consumption in the state. The decline in consumption has been negatively impacting tax revenue collections state-wide and decreased the proportionate share of the tax received by the City.


Real Estate Excise Tax (REET)

Real Estate Excise Tax (REET) of one-quarter of one percent of the selling price is imposed on each sale of real property in the corporate limits of the City. The tax is deposited into the Street Fund and is restricted to fund preservation of the City’s street system. The City also collects REET for Parks and Transportation capital.

REET revenue was growing rapidly in years 2004-2006 fueled by the favorable real estate

market and increasing home prices. REET revenues declined significantly through 2010 since the housing bubble in 2005 and 2006. Since 2011 collections have been representing an upward trend. The real estate market is showing consistent signs of improvement.

REET revenue received through June of 2015 totaled $1.2 million, approximately $200

thousand higher than the comparable 2014 collections. The graph below demonstrates fluctuations in REET collections over the past eleven years.


Consolidated Fire Fund

The City has an Operating Fire Fund and Capital Fire Fund, largely funding vehicle replacements and set up. The Operating Fire Fund fully supports the Capital Fire Fund. The graph below represents the operating funds’ financial information.

Operating Fire Fund revenues in the second quarter of 2015, (exclusive of General Fund support, the Fire District 5 transfer and the transfer between Fire Operating and Capital) were $0.7 million, mostly representing permit fees. Permit and inspection fees exceeded last year collections by approximately $150 thousand this year during the first half of the year. A pilot project is under way in the Fire Marshall’s office. Two new inspector positions were created in the 2015-2016 budget with an expectation of generating sufficient revenues from to cover the costs associated with these positions. So far, the two inspectors generated more than sufficient revenue to cover the costs. Total Fire Operating Fund revenue, including the General Fund transfer, totaled $17.6 million.


Total operating Fire Operating expenditures through the second quarter of 2015 were $17.0 million, approximately $1.7 million higher than those in 2014, at 48.4% of the budget. Overtime expenditures are running high due to a large number of vacant fire fighter positions.

Building Inspection Fund

Building inspection fee revenues received through June of 2015 totaled $2.3 million, almost $600 thousand higher than permit revenue generated in the first half of 2014.

Building Fund expenditures through June of 2015 were at $2.4 million, approximately $400

thousand higher than in the comparable time period of 2014.

The fund balance in the Building fund anticipates funding 18 months of permitting activity after the revenue is collected.


Parking Fund

Fee and fine revenues through June of 2015 were $1.0 million, approximately $70 thousand above the comparable collections in 2014.

The General Fund support of the Parking fund remains at the $1.25 million level in 2015. Over time, the fund is anticipated to become self-supporting.

Operating expenses through June of 2015 totaled $1.0 million, approximately $50

thousand greater than those in 2014.

Utility Operations Operating transfers between the Water, Sewer and Storm Water funds are included in the accompanying report, Attachment A, per budget requirements. These transfers are generally eliminated when financial statements are prepared. Financial statements for utility funds are prepared on a quarterly basis. Please call (360) 487-8444 to receive a copy of the detailed financial statements for the utility funds. Water

Water sales revenues were $11.8 million through June of 2015, 42% of the forecast. Collections were $750 thousand above the comparable 2014 collections, largely due to a combination of the impact of fee increases effective in 2015 as well as an elevated water


usage caused by hotter than average summer weather this year. There was a 5% increase in rates effective in 2014 and an additional 5% increase in 2015.

Expenditures in the Water fund through June of 2015 totaled $13.8 million, or 33% of the

budget.

Sewer

Sewer charge revenues in the Sewer Fund were $19.3 million through June of 2015, approximately $0.8 million above the 2014 comparable revenues. Sewer rates were increased by 9% in 2011, 6.5% in 2012, 2.5% in 2013 and 2014 and 2% in 2015.

Sewer fund has been borrowing from the Water fund to support operations. The support of

the Sewer Fund by the Water fund has been decreasing in the last several years; the fund borrowed $1.2 million in 2014 and is anticipating the need to borrow $4 million in 2015.

Sewer expenditures through June of 2015 totaled $20.2 million, in line with spending during

the comparable period of 2014. Storm Water

A total of $6.2 million in storm water fee revenue was received in the second quarter of 2015, approximately $400 thousand higher than revenues from a comparable period of 2014. The Storm Water rates were increased by 5% in 2013, 2014 and 2015.

Overall, the expenditures in the Storm Water fund through June of 2015 were $5.3 million, or 40.1% of the budget, higher than those in the first half of 2014 by approximately $600 thousand.


IV. Outstanding Debt

At the end of the second quarter of 2015, the City had about $100.7 million of general obligation (G.O.) debt outstanding and approximately $31.0 million of revenue bond debt outstanding. General obligation debt is backed by the full faith and credit of the City and by general taxes. Revenue bond debt is supported by a pledge of specific revenues. All of the City’s revenue bond debt is supported by the City’s water and sewer utilities. The weighted average interest rate for the City’s general obligation debt is 3.52% while the average interest rate for the City’s revenue bond debt is 3.97%.

A complete list of the City’s outstanding debt is included in Attachment C.

V. Investments

Market Conditions Information received since the Federal Open Market Committee met in April 2015 suggests

that economic activity has been expanding moderately after having changed little during the first quarter. The pace of job gains picked up while the unemployment rate remained steady. On balance, a range of labor market indicators suggests that underutilization of labor resources diminished somewhat. Growth in household spending has been moderate and the housing sector has shown some improvement; however, business fixed investment and net exports stayed soft. Inflation continued to run below the FOMC Committee's longer-run objective, partly reflecting earlier declines in energy prices and decreasing prices of non-energy imports; energy prices appear to have stabilized. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations have remained stable.

To support continued progress toward maximum employment and price stability, the FOMC Committee on June 2015 reaffirmed its view that the current 0.0 to 0.25 percent target range for the federal funds rate remains appropriate. In determining how long to maintain this target range, the FOMC Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The FOMC Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.

The overall yield curve increased during the second quarter of 2015. The yield on the three-

month Treasury has decreased ending at 0.01% at the end of the second quarter. The six-month Treasury yield has decreased to 0.08%. The yield on the two-year Treasury has increased to 0.64%. The thirty-year Treasury yield increased, ending the second quarter at 3.11% from 2.54%. Market risk of the City’s portfolio is low. Investment purchase maturities have been kept at less than one year and are due to the Federal Reserve’s statement of continued low overnight rates into late-2015 early 2016. The investment maturities are expected to meet the cash flow needs of the city and it is unlikely that an investment would have to be liquidated before maturity to meet the city cash needs.


The City complies with State statutory guidelines and the City’s investment policies that limit the types of securities purchased. These consist of U.S. Treasury securities, federally-backed agency securities, and other relatively risk-free investments. The City does not leverage its portfolio nor does it invest in derivatives.

Investment Performance The average amount invested during the second quarter of 2015 was $282.0 million compared to $271.0 million on June 30, 2014. The portfolio had an average yield of 0.47% year to date, which are 8 basis points lower than the projected yield of 0.55% for 2015. The projected yield is based upon the blended yield between existing rates and expected market rates when new investments are purchased during the year. The year-to-date yield is 29 bps higher than the State Investment Pool, which had an average yield of 0.169%. The State Pool has a weighted average maturity of 36 days. The City’s investment portfolio weighted average maturity is approximately 9 months. Longer-term portfolio yields will outperform shorter-term portfolio yields in a falling interest rate environment. Interest revenue distributed through the second quarter of 2015 to all funds is approximately $647,690 compared to $485,712 during the same period of 2014. The City’s investment portfolio profile is detailed in Attachment D.


VI. Interfund Loans In 2003, Council passed an ordinance giving the City Treasurer the authority to make interfund loans to meet the short term liquidity and cash flow needs of the City’s various funds. The ordinance requires the City Treasurer to provide a quarterly report to City Council showing the amount of all interfund loans outstanding and the repayment plan for those loans. Through the second quarter of 2015, no funds were on interfund loans.


Quarterly Expense SummaryCity of Vancouver

Second Quarter of 2015 Financial Report

Attachment A

A A A B ARANGE NAME ADJ-14 JUN-14 JUL-15 JUN-15

2014 2014 2015 2015 % Actuals June Budget June of Budget

GENERAL FUNDCity Council 502,486 241,403 48% 600,338 294,677 49.1%City Manager's Office 2,520,791 1,188,990 47% 2,669,604 1,325,071 49.6%Legal Services 3,996,081 1,798,833 45% 4,683,295 2,288,849 48.9%Community Economic Development 4,524,665 2,089,886 46% 6,185,212 2,847,998 46.0%Parks Administration 749,735 368,451 49% 954,407 442,414 46.4%Parks, Trails, & Natural Resources 2,910,587 256,706 9% 1,198,115 321,270 26.8%Recreation Services 5,716,035 2,620,587 46% 6,867,164 3,034,439 44.2%Police 35,136,837 16,579,543 47% 39,141,662 19,894,215 50.8%Transportation 633,729 299,726 47% 75,000 13,817 18.4%Grounds Maintenance 2,827,743 1,281,158 45% 3,402,331 1,520,940 44.7%Facilities Maintenance 3,307,052 1,234,075 37% 3,708,119 1,519,956 41.0%Financial and Mgmt Services 4,192,714 1,789,795 43% - (165) General Services 411,089 190,818 46% - - Information Technology 3,518,528 1,606,347 46% - - Human Resources 1,198,944 576,248 48% - (317)

Subtotal Non-Gen. Governmental 72,147,015 32,122,566 45% 69,485,247 33,503,165 48.2%General Governmental

Child Justice Center Support 333,864 166,932 50% 345,537 168,360 48.7%City Cable Programming 460,596 230,298 50% 460,596 230,298 50.0%Fire District #6 17,437 17,437 100% 17,640 18,157 102.9%Emergency Mgmt (CRESA) 140,758 105,569 75% 144,464 71,622 49.6%Air Pollution Control Authority 53,356 53,356 100% 56,166 53,885 95.9%Humane Society 226,386 80,231 35% 278,908 89,744 32.2%Animal Control 243,743 112,497 46% 236,243 131,194 55.5%Alcoholism Support 35,544 7,341 21% 29,577 8,999 30.4%Regional Transp Council - - n/a 21,300 21,300 100.0%Election Support 182,675 - 0% 350,000 - 0.0%AWC, Chamber of Commerce Memberships 82,237 71,627 87% 85,733 73,629 85.9%Opportunity Reserve 137,244 46,341 34% 243,941 68,152 27.9%Miscellaneous 5,096,702 158,522 3% 979,539 432,785 44.2%Public Defender 714,676 401,907 56% 1,322,630 567,356 42.9%County Jail Costs 3,934,134 1,037,227 26% 4,457,345 968,312 21.7%County Corrections Costs 1,299,551 469,092 36% 1,141,900 537,538 47.1%County District Court Costs 903,924 254,564 28% 1,240,632 215,982 17.4%General Obligation Debt Payment 6,892,169 944,440 14% 6,995,887 831,341 11.9%General Govt Support 40,964,483 18,544,558 45% 49,853,245 24,710,856 49.6%

Subtotal General Govermental 61,719,478 22,701,936 37% 68,261,283 29,199,509 42.8%Total General Fund 133,866,493 54,824,502 41% 137,746,530 62,702,674 46%

SPECIAL REVENUE FUNDSStreet 16,836,378 4,482,133 27% 19,500,114 6,251,409 32.1%Fire Operating Fund 32,818,755 15,335,814 47% 35,108,940 17,007,438 48.4%Fire Capital Fund 908,202 233,220 26% 2,409,059 169,943 7.1%AMR Compliance Fund (New) - 753,867 174,282 23.1%Drug Enforcement and Investigative Funds 81,459 37,114 46% 323,685 37,401 11.6%Community Development Block Grant 1,713,037 771,472 45% 4,034,502 1,391,630 34.5%Tourism 872,934 346,651 40% 2,711,210 391,877 14.5%Criminal Justice/LLEBG 126,730 - 0% 226,816 (255) -0.1%Real Estate Excise Tax - I 1,965,718 518,790 26% 3,406,694 501,142 14.7%Transportation Special Revenue 2,116,927 614,233 29% 2,228,680 597,495 26.8%Parks & Recreation Special Revenue 45,088 1,426 26,071 23,228 89.1%Parks Construction - Residual REET 34,308 8,004 23% 89,877 13,147 14.6%Downtown Initiatives 93,102 52,641 57% 401,676 56,849 14.2%VNHR Properties 100,453 18,857 19% 249,894 53,343 21.3%Senior Messenger 254,888 137,914 54% 319,820 138,333 43.3%TIF Funds 1,968,172 126,541 6% 4,593,722 371,014 8.1%PIF Funds 1,162,750 39,151 3% 2,080,778 46,034 2.2%

% of Final


Quarterly Expense SummaryCity of Vancouver

Second Quarter of 2015 Financial Report

Attachment A

2014 2014 2015 2015 % Actuals June Budget June of Budget % of Final

DEBT SERVICE FUNDSG O Debt Service Fund 11,850,517 2,212,389 19% 40,243,555 4,046,646 10.1%L I D Debt Fund 458,167 - n/a 107,000 - 0.0%/CAPITAL FUNDS2011 Bond Capital Fund - Waterfront 228,785 113,813 50% 445,074 16,446 3.7%Transportation Capital Fund 6,745,219 2,588,311 38% 28,313,732 7,233,896 25.5%Fire Acquisition Fund - - n/a 4,380,000 1,904,579 43.5%Capital Improvement Fund 700,357 175,490 25% 7,068,000 1,070,308 15.1%VNHR Property Capital 997 - 0% 8,004,854 413,428 5.2%2015 Bond Capital Fund - VNHR (New) - - 5,156,529 413,689 8.0%Parks Construction Fund (Capital Projects only 3,197,673 106,724 3% 13,450,391 273,670 2.0%City Tree Reserve Fund 6,318 38 1% 19,237 4,110 21.4%Drainage Construction Fund 988,111 625,463 63% 959,507 193,828 20.2%Systems Development Reserves 1,100,000 1,100,000 100% 2,500,000 - 0.0%Water Construction Fund 7,802,090 3,787,025 49% 21,174,031 3,140,569 14.8%Utility Customer Assistance 15,709 9,330 59% 35,000 13,295 38.0%Water Revenue Bond Debt Service Fund 85,123 606,514 713% 643,574 620,017 96.3%Sewer Revenue Bond Debt Service Fund 2,208,819 9,764,592 442% 10,774,586 9,984,715 92.7%Sewer System Development 1,200,000 - 0% 2,500,000 - 0.0%Sewer Construction Fund 856,241 45,205 5% 7,151,214 482,670 6.7%

ENTERPRISE FUNDSStorm Water 11,287,864 4,662,609 41% 13,175,741 5,288,612 40.1%Water 29,544,969 12,239,708 41% 41,962,779 13,813,078 32.9%Sewer 45,556,229 20,210,453 44% 46,120,774 20,126,602 43.6%Building Inspection 4,189,595 1,903,847 45% 5,037,154 2,349,770 46.6%Solid Waste 2,352,590 848,006 36% 3,006,956 879,755 29.3%Parking 2,902,377 979,066 34% 3,503,350 1,021,192 29.1%Tennis Center 1,076,443 512,095 48% 1,232,041 580,898 47.1%Airpark 631,450 195,085 31% 1,102,267 222,186 20.2%

INTERNAL SERVICE FUNDSFacilities Asset Mgmt & Replacement Reserve F - - 0% 4,721,736 1,500,123 31.8%Equipment Services Operations Fund 5,010,721 2,435,737 49% 5,772,658 2,461,104 42.6%Equipment ER&R Capital 1,501,203 1,474,736 98% 2,158,234 815,374 37.8%Technology ER&R 2,939,024 1,755,923 60% 1,297,349 635,286 49.0%Risk Fund 5,418,316 1,689,841 31% 4,276,979 1,637,958 38.3%Internal Administrative Services Fund (New) - - Finance - - 5,339,942 2,399,645 44.9% Information Technology - - 6,445,860 2,699,752 41.9% Human Resources - - 1,873,037 890,900 47.6% General Services - - 334,598 170,917 51.1%Benefits Fund 14,584,536 7,258,449 50% 12,830,028 7,291,989 56.8%Self Insured Health Insurance (New) - - 6,772,631 2,284,737 33.7%Print Shop & Mail Services 172,753 79,743 46% 235,906 98,815 41.9%

AGENCY FUNDSSWAT Team 172,819 58,514 34% 182,845 132,989 72.7%Police Pension 923,385 495,563 54% 989,413 309,864 31.3%Fire Pension 1,430,425 671,383 47% 1,799,238 615,777 34.2%Cable TV 1,086,578 563,693 52% 1,277,479 580,468 45.4%

Notes1. This report contains the unaudited results through the end of June 2015.

3. Operating transfers between funds are included within this report.4. Capital project and Water/Sewer Debt Funds are excluded; Proprietary funds only include operating revenues.5. The Water, Sewer and Storm Water funds are adopted as one legal fund but are shown separately for informational purposes.

2. This report was prepared using the methodology prescribed under the basis of budgeting, depreciation, appreciation costs have been excluded


Quarterly Revenue SummaryCity of VancouverSecond Quarter of 2015 Financial Report

Attachment B

JUL-15 JUN-152014 2014 % of 2015 2015 % of

Actual June YE Actual Budget June BudgetGENERAL FUND Tax Revenue

Property Tax 43,344,456 23,855,069 55% 43,862,543 24,708,639 56%Sales Tax 30,500,677 14,434,272 47% 30,489,436 16,274,250 53%Electrical Tax 8,168,161 4,527,223 55% 8,063,037 4,245,717 53%Natural Gas 3,400,739 2,423,604 71% 2,656,426 1,651,675 62%Telephone 4,672,282 2,387,096 51% 4,572,738 2,190,963 48%Cable Franchise Fee 1,892,519 933,448 49% 1,807,303 984,420 54%Water/Sewer/Storm Water 15,316,069 7,045,093 46% 15,736,243 7,408,581 47%Solid Waste Utility Tax 3,755,438 1,860,393 50% 3,862,095 1,911,915 50%Gambling and Leasehold Taxes 630,085 322,035 51% 612,403 335,714 55%

Subtotal Tax Revenue 111,680,427 57,788,233 52% 111,662,224 59,711,873 53%Business Licenses 851,489 448,880 53% 912,464 519,916 57%Grants & Entitlements 1,526,260 320,037 21% 2,027,188 580,848 29%State Shared Revenues 2,883,948 894,055 31% 2,961,392 920,968 31%Parks Contract with Clark County 59,845 2,054 3% - 33,319 Charges for Services

Planning Permits 831,119 313,957 38% 425,593 516,755 121%Recreation Program Fees 4,112,593 2,321,908 56% 4,552,311 2,352,259 52%Interfund Service Charges 7,553,700 3,735,374 49% 3,240,973 2,343,938 72%Other Charges & Services 801,809 471,886 59% 685,051 436,402 64%

Subtotal Charges for Services 13,299,222 6,843,126 51% 8,903,928 5,649,354 63%District Court 1,841,392 1,014,992 55% 1,659,372 864,255 52%Miscellaneous 712,648 272,665 38% 1,905,856 355,078 19%Lease Revenue (short and long-term) 3,249,652 1,255,378 39% 3,228,755 1,602,105 50%Operating Transfers 550,353 10,649 2% 780,157 33,069 4%

Total General Fund 136,655,235 68,850,069 50% 134,041,335 70,270,786 52%

SPECIAL REVENUE FUNDSStreet Fund

Real Estate Excise Tax 2,403,493 973,968 41% 2,203,355 1,150,792 52%Motor Vehicle Fuel Tax 3,410,953 1,615,665 47% 3,490,789 1,641,312 47%Permits and Misc. 745,722 225,216 30% 1,259,410 279,290 22%Operating Transfers 9,987,907 4,943,838 49% 11,838,428 5,881,714 50%

Total Street Fund 16,548,074 7,758,687 47% 18,791,982 8,953,109 48%Operating Fire Fund

Service Charges-Fire Dist. #5 7,784,190 3,904,205 50% 8,322,836 4,045,746 49%Grant Revenue 1,450,493 37,222 3% 57,939 57,945 0%Permit/Other Fees and Misc 960,782 453,247 47% 946,352 604,586 64%Operating Transfers 23,113,786 11,136,029 48% 25,886,091 12,943,046 50%

Total Operating Fire Fund 33,309,251 15,530,703 47% 35,213,218 17,651,323 50% Fire Equipment Fund 2,772,948 773,002 28% 1,117,777 599,245 54%

AMR Compliance Fund (New) 14 - 0% 688,327 397,078 58%

Other Special Revenue FundsDrug Enforcement 239,969 126,409 53% 335,000 74,729 22%Community Development Block Gran 1,570,030 659,561 42% 3,912,321 1,396,326 36%Tourism 1,743,967 699,325 40% 1,484,336 803,192 54%Criminal Justice/LLEBG 234,598 113,845 49% 295,578 118,461 40%Real Estate Excise Tax - I 2,279,745 917,857 40% 2,190,154 1,085,692 50%Parks & Recreation Special Revenue 68,510 7,087 10% 20,000 16,447 82%Downtown Initiatives 162,422 81,130 50% 162,344 85,750 53%VNHR Properties 188,746 94,272 50% 240,505 98,906 41%Senior Messenger 304,535 124,101 41% 250,000 134,442 54%TIF Funds 941,481 267,635 28% 531,692 381,101 72%PIF Funds 1,431,114 616,044 43% 655,000 858,818 131%Miscellaneous Special Revenue Fund 318,110 128,706 40% 262,000 143,187 55%

DEBT SERVICE FUNDSG O Debt Service Fund 11,854,562 2,212,389 19% 40,187,855 4,046,646 10%L I D Fund 587,431 1,388 0% 8,000 330 4%

CAPITAL FUNDS

2011 Bond Capital Fund - Waterfront 18,437 8,198 44% - 10,497 Transportation Capital Fund 11,073,464 4,684,918 42% 27,650,660 2,091,349 8%Capital Improvement Fund 6,621,303 3,244,517 49% 5,480,500 17,557 0%VNHR Property Capital 281,141 636 0% 7,915,105 411,904 5%Parks Construction Fund (Capital Proje 3,956,902 124,017 3% 13,438,987 120,726 1%City Tree Reserve Fund 16,076 10,179 63% 81,348 3,093 4%Drainage Construction Fund 849,432 15,639 2% 1,166,877 238,898 20%Water/Sewer Capital Reserves 12,026 5,203 43% 10,000 6,872 69%Systems Development Reserves 2,103,128 1,201,961 57% 1,506,000 1,674,077 111%Water Construction Fund 1,435,513 1,157,305 81% 16,720,102 86,803 1%SCIP Fund 805,027 375,610 47% 615,000 396,057 64%Utility Customer Assistance 11,437 3,271 29% 41,000 4,171 10%Water Revenue Bond Debt Service Fun 645,942 511,758 79% 643,572 520,770 81%Sewer Revenue Bond Debt Service Fun 10,819,027 8,308,830 77% 10,789,584 8,454,762 78%

8/18/2015


Quarterly Revenue SummaryCity of VancouverSecond Quarter of 2015 Financial Report

Attachment B

JUL-15 JUN-152014 2014 % of 2015 2015 % of

Actual June YE Actual Budget June BudgetDebt Service Reserves 7,208 3,188 44% 6,000 4,202 70%Sewer Utility Fund 41,059,579 19,196,995 47% 44,132,857 21,130,599 48%Sewer System Development 2,130,461 1,238,988 58% 2,053,000 1,621,544 79%Sewer Construction Fund 1,449,132 911 0% 6,644,000 132,680 2%ENTERPRISE FUNDSStorm Water

Storm Drainage Fees 11,661,770 5,759,139 49% 11,994,129 6,151,713 51%Private Capital Contributions 347,885 120,645 35% 150,000 338,296 226%Miscellaneous 284,692 112,109 39% 100,000 124,955 125%

Total Storm Water Fund 12,294,347 5,991,893 123% 12,244,129 6,614,963 54%Water

Water SalesResidential 21,195,019 9,039,711 43% 22,243,659 9,652,493 43%Commercial 4,580,210 1,736,250 38% 4,718,647 1,837,247 39%Governmental 821,042 269,401 33% 875,916 312,318 36%

Subtotal Water Sales 26,596,271 11,045,362 27,838,222 11,802,058 42%Private Capital Contributions 2,613,959 1,389,351 53% 2,500,000 1,705,709 68%Interfund Transfers 2,908,437 463,005 16% 2,814,746 912 0%Indirect Cost Plan Revenue 1,275,294 577,857 45% 1,398,068 788,451 56%Miscellaneous 2,152,919 993,685 46% 1,755,567 1,008,222 57%

Total Water Fund 35,546,880 14,469,259 36,306,603 15,305,351 42%Sewer

Sewer ChargeResidential 25,603,987 12,689,666 50% 25,815,692 13,022,737 50%Commercial, Industrial 11,705,089 5,472,732 47% 12,154,634 5,619,415 46%Governmental 1,214,558 602,190 50% 1,388,053 609,037 44%

Subtotal Sewer Charges 38,523,634 18,764,588 49% 39,358,379 19,251,189 49%Private Capital Contributions 956,163 272,590 29% 600,000 1,655,054 276%Interfund Transfers 1,200,000 - 0% 3,981,178 - 0%Miscellaneous 379,783 159,817 42% 193,300 224,356 116%

Total Sewer Fund 41,059,579 19,196,995 47% 44,132,857 21,130,599 48%Building Inspection

Permits 2,881,245 1,338,162 46% 3,412,211 1,839,710 54%Miscellaneous 155,631 77,230 50% 151,020 80,007 53%Interfund Services 647,824 323,912 50% 805,832 402,916 50%

Total Building Fund 3,684,700 1,739,303 47% 4,369,063 2,322,634 53%Solid Waste

Solid Waste Utility Tax 1,421,536 710,768 50% 1,680,000 548,034 33%Service Charges-Recycling 838,822 264,277 32% 900,000 184,374 20%Miscellaneous 73,327 23,287 32% 30,000 26,374 88%

Total Solid Waste Fund 2,333,685 998,332 43% 2,610,000 758,782 29%Parking

Parking Fines 442,011 220,970 50% 578,000 260,745 45%Parking Meters & Lots 1,418,557 693,631 49% 1,707,560 777,670 46%Miscellaneous (61,581) (9,856) 16% (9,500) 15,095 -159%Operating Transfers 1,245,540 - 0% 1,245,540 - 0%

Total Parking Fund 3,044,526 904,744 30% 3,521,600 1,053,510 30%Tennis Center

Membership Fees 841,874 441,541 52% 908,223 434,211 48%Instruction Fees 2,431 1,284 53% 2,400 1,764 74%Miscellaneous 17,857 7,499 42% 49,333 11,532 23%Operating Transfers 189,864 57,432 30% 343,077 81,849 24%

Total Tennis Center Fund 1,052,026 507,756 48% 1,303,033 529,356 41%Other Enterprise Funds

Pearson Airfield 713,165 360,499 51% 734,780 348,905 47%Utility Customer Assistance 11,437 3,271 29% 41,000 4,171 10%

INTERNAL SERVICE FUNDSFacilities Asset Mgmt & Replacement R 1,832,604 913,537 50% 1,820,000 921,387 51%Equipment Services Operations Fund 4,461,647 2,083,071 47% 4,985,076 2,493,595 50%Equipment Services Capital Fund 2,880,158 1,394,406 48% 2,890,263 1,635,471 57%Computer Repair & Replacement 7,461,199 1,341,422 18% 2,667,556 1,282,759 48%Self-Insured Worker's Comp & Liability F 4,228,666 2,011,520 48% 3,567,982 1,786,748 50%Internal Administrative Services Fund 600,088 - 0% 16,320,601 9,230,812 57%Benefits Fund 14,658,247 6,985,940 48% 11,507,985 8,532,048 74%Self-Insured Health Insurance Fund - - 7,919,367 5,387,829 68%Mail Services Fund 177,863 86,521 49% 193,234 124,028 64%

AGENCY FUNDSSWAT Team 179,407 67,558 38% 209,898 71,695 34%Police Pension 1,081,764 540,715 50% 1,082,468 542,528 50%Fire Pension 1,976,417 1,081,654 55% 1,981,000 1,070,592 54%Cable TV 1,330,532 469,688 35% 1,254,935 489,696 39%/Notes1. This report was prepared using the methodology prescribed under the basis of budgeting.2. Operating transfers between funds are included within this report.3. Capital Project Funds are excluded.4. The Water, Sewer and Storm Water funds are adopted as one legal fund but are shown separately for informational pur Private capital contributions, adjustments for doubtful accounts and interfund transfers are included in this report and ar

8/18/2015


Attachment CCity of VancouverOutstanding Debt - General Obligation BondsThrough Second Quarter 2015

True FinalIssue Original Issue Amount Interest MaturityDate Purpose Amount Outstanding Cost (TIC) Date

Oct-02 To partially refund 1993, 1996, 1997, 1999, & 2000 LTGO issues, and issue $1.6 million for the Oracle HR/Payroll Management System Implementation

39,365,000 11,520,000 4.08% 12/1/2018

Jul-05 To construct & equip the East Precinct Police facility, and to partially refund the 98A and 98B LTGO bonds.

18,090,000 6,845,000 4.07% 12/1/2026

Oct-06 To fund multiple transportation projects and to fund the Marshall Community Center remodel

14,785,000 1,425,000 4.25% 12/1/2025

Jun-08 To fund West Police Precinct, Fire Station 810 and Police Evidence

14,570,000 1,750,000 4.51% 12/1/2027

Jun-09 To fund multiple Transportation Projects 12,970,000 10,195,000 4.03% 12/1/2028

Dec-10 To fund the new City Hall and partially refund the 2001 LTGO bond issue

13,410,000 10,340,000 4.50% 12/1/2035

Jun-11 To fund Transportation Projects for the Waterfront Access Project

10,515,000 9,625,000 3.93% 12/1/2035

Jan-12 To partially refund the 2003 LTGO bond issue for the Firstenburg Community Center

15,945,000 15,255,000 3.26% 12/1/2029

Dec-12 To partially refund the 2002 LTGO & Refunding bond issue for VancouverCenter, West Coast Bank, and Street Improvements

9,515,000 9,420,000 2.36% 12/1/2025

Jun-15 To fund the West Barracks rennovations (Vancouver Heritage Bonds)

1,296,500 1,296,500 4.33% 12/1/2028

Jun-15 To fund the West Barracks rennovations and to partially refund the 2005 LTGO, 2006 LTGO, and the 2008 LTGO issued for the East Police Precinct, West Police Precinct, Evidence Building, Fire Station 810, Transportation Projects, and the Marshall CC remodel.

23,100,000 23,100,000 2.72% 12/1/2034

Total Outstanding General Obligation Bonds 100,771,500$


Attachment CCity of VancouverOutstanding Debt - Revenue BondsThrough Second Quarter 2015

True FinalIssue Original Issue Amount Interest MaturityDate Purpose Amount Outstanding Cost (TIC) Date

Feb-04 Partially refund the 1999 Water/Sewer Revenue Bonds

26,250,000 14,875,000 3.998% 6/1/2020

Apr-05 Partially refund the 1997 Water/Sewer Revenue Bonds

42,520,000 13,625,000 4.037% 6/1/2018

Jun-08 Refund the 1998 Water/Sewer Revenue Bonds

20,230,000 2,845,000 3.551% 12/1/2016

31,345,000$


City of VancouverInvestment Activity

Second Quarter of 2015(Dollars in thousands)

As of Percent of As of Percent of3/31/2015 Portfolio 6/30/2015 Portfolio

State Investment Pool 85,036 31.2% 90,293 31.9%Clark County Investment Pool 25,763 9.4% 10,113 3.6%U.S. Agencies 138,387 50.7% 156,052 55.2%Corporate Bonds (Pension Fund) 1,002 0.4% 1,000 0.4%Municipal Bonds 16,861 6.2% 18,967 6.7%Zero Coupon 5,918 2.2% 6,194 2.2%

Total by Investment Type 272,968$ 100.0% 282,618$ 100.0%

As of Percent of As of Percent of3/31/2015 Portfolio Cumulative 6/30/2015 Portfolio Cumulative

Overnight 110,955 40.6% 40.6% 104,241 36.9% 36.9%One Month - 0.0% 40.6% - 0.0% 36.9%Two to Six Months 11,221 4.1% 44.8% 16,275 5.8% 42.6%Six Months to One Year 28,614 10.5% 55.2% 27,833 9.8% 52.5%One to Five Years 122,178 44.8% 100.0% 134,270 47.5% 100.0%

Total by Length of Maturity 272,968$ 100.0% 282,618$ 100.0%

12 Months 12 Months


City of VancouverInvestment Activity

Second Quarter 2015

Issuer Type of InvestmentTransaction

DateMaturity

Date Purchase or

Deposit Redemption or

Withdrawal

Effective Interest

Rate

AprilClark County Treasurer* Local Government Investment Pool 10,094.16 10,221,271.50 0.54%Muni Chelan County 4/29/2015 500,000.00 2.27%FFCB U.S. Agency 4/16/2015 5,000,000.00 0.45%FFCB U.S. Agency 4/20/2015 2,000,000.00 0.51%FHLB U.S. Agency 4/28/2015 5,000,000.00 0.47%FHLB U.S. Agency 4/28/2015 5,000,000.00 0.50%FHLM U.S. Agency 4/17/2015 3,795,000.00 1.25%FHLM U.S. Agency 4/13/2015 5,500,000.00 1.00%FHLM U.S. Agency 4/14/2015 5,000,000.00 0.50%Muni Seattle WA Muni Light & Power 4/1/2015 155,000.00 5.25%Muni Snohomish County School District 4/10/2015 350,000.00 2.00%Washington State Treasurer* Local Government Investment Pool 31,763,804.22 28,000,000.00 0.17%

54,123,898.38 48,171,271.50

May

Clark County Treasurer* Local Government Investment Pool 6,658.21 229,548.69 0.54%

Muni Chelan County 5/22/2015 2,000,000.00 0.68%

FFCB U.S. Agency 5/19/2015 5,000,000.00 0.48%

FHLB U.S. Agency 5/21/2015 5,000,000.00 0.70%

FHLB U.S. Agency 5/13/2015 5,000,000.00 1.35%

FHLB U.S. Agency 5/18/2015 5,000,000.00 0.25%

FHLM U.S. Agency 5/6/2015 5,000,000.00 1.10%

FHLM U.S. Agency 5/29/2015 5,000,000.00 0.80%

FNMA U.S. Agency 5/6/2015 5,000,000.00 0.75%

FNMA U.S. Agency 5/28/2015 5,000,000.00 1.05%

Washington State Treasurer* Local Government Investment Pool 37,980,698.79 22,500,000.00 0.04%

59,987,357.00 42,729,548.69

June

Clark County Treasurer* Local Government Investment Pool 4,757.29 5,221,767.05 0.54%

MUNI City of Yakima 6/1/2015 110,000.00 3.00%

FHLB U.S. Agency 6/8/2015 5,000,000.00 0.50%

FHLB U.S. Agency 6/30/2015 5,000,000.00 0.55%

FHLM U.S. Agency 6/30/2015 5,000,000.00 0.80%

FHLM U.S. Agency 6/30/2015 5,000,000.00 0.80%

FHLM U.S. Agency 6/30/2015 5,000,000.00 0.80%

FHLM U.S. Agency 6/15/2015 5,000,000.00 0.63%

FHLM U.S. Agency 6/23/2015 5,000,000.00 0.65%

FHLM U.S. Agency 6/1/2015 1,705,000.00 0.50%

MUNI King County School District 6/23/2015 2,530,000.00 2.00%

Washington State Treasurer* Local Government Investment Pool 20,013,048.66 34,000,000.00 0.17%

42,547,805.95 56,036,767.05

* Investments in the County and State Local Government Investment Pools can change daily, therefore no purchase dates are shown

and the maturity dates are the last date for each reporting period.


City of Vancouver Investment Portfolio Including Call Dates

6/30/2015Purchase Maturity Par Market Book Percent Cumulative Interest Effective

CUSIP Issuer Date Date Value Value Value of Portfolio Percent Rate Yield Callable

CLARK CO LGIP Clark County LGIP 10,112,795.27 10,112,795.27 10,112,795.27 3.58% 0.04 0.36 0.354

WA STATE LGIP Washington State LGIP 90,293,718.70 90,293,718.70 90,293,718.70 31.95% 0.32 0.14 0.141

94974BFE5 Wells Fargo Bank 04/25/2013 42,186.00 500,000.00 500,000.00 500,000.00 0.18% 0.00 1.50 0.591 No Calls.

93974BQT2 State of Washington 04/17/2013 42,186.00 3,335,000.00 3,335,466.90 3,335,000.00 1.18% 0.01 5.00 0.335 No Calls.

36962G5Z3 General Electric Capital Corp 01/30/2013 42,187.00 500,000.00 500,000.00 500,012.44 0.18% 0.00 1.63 0.71 No Call.

31398AU34 Federal Nat'l Mtg. Assoc. 06/12/2013 42,213.00 5,000,000.00 5,008,150.00 5,007,291.06 1.77% 0.02 2.38 0.414 Bullet.

313380L96 Federal Home Loan Bank 11/20/2014 42,328.00 5,000,000.00 5,006,100.00 5,005,733.75 1.77% 0.02 0.50 0.2 Bullet

3134G3W55 Federal Home Loan Mortgage Co. 03/22/2013 42,332.00 5,000,000.00 5,005,550.00 5,001,341.94 1.77% 0.02 0.45 0.377 No Call.

181288PE5 Clark County School District 02/25/2015 42,339.00 415,000.00 418,116.65 417,968.15 0.15% 0.00 2.00 0.277 No Calls.

624573EU1 City of Mountlake Terrace 12/30/2014 42,339.00 105,000.00 105,722.40 105,679.96 0.04% 0.00 2.00 0.435 Bullet

720475SH6 Pierce County School District 01/06/2015 42,339.00 105,000.00 105,788.55 105,759.39 0.04% 0.00 2.00 0.257 Non callable.

921594F28 Vancouver Wash LTGO 06/22/2011 42,339.00 25,000.00 25,114.25 25,000.00 0.01% 0.00 2.25 2.219 No calls

962506QD6 Whatcom County School District 07/29/2014 42,339.00 105,000.00 105,779.10 105,732.60 0.04% 0.00 2.00 0.316 No Calls.

181117DQ2 Clark County WA Public Utiliti 03/08/2012 42,370.00 330,000.00 337,804.50 336,074.98 0.12% 0.00 5.00 1.208 Non‐Callable.

812626X61 City of Seattle 06/04/2013 42,370.00 2,500,000.00 2,501,875.00 2,500,000.00 0.88% 0.01 0.60 0.734 No Calls.

3130A2QU3 Federal Home Loan Bank 12/11/2014 42,394.00 5,000,000.00 5,002,900.00 5,001,695.62 1.77% 0.02 0.34 0.276 Bullet

313382B77 Federal Home Loan Bank 02/12/2013 42,412.00 5,000,000.00 5,004,550.00 5,000,000.00 1.77% 0.02 0.42 0.414 No Call.

3130A3FM1 Federal Home Loan Bank 12/16/2014 42,430.00 5,000,000.00 4,999,700.00 4,998,620.69 1.77% 0.02 0.30 0.337 Bullet

3133EDZ88 Federal Farm Credit Bank 12/03/2014 42,487.00 5,000,000.00 4,996,850.00 4,999,119.05 1.77% 0.02 0.25 0.268 Bullet

3130A5EJ4 Federal Home Loan Bank 05/18/2015 42,508.00 5,000,000.00 4,993,000.00 4,997,798.61 1.77% 0.02 0.25 0.296 Bullet

939720LH9 State of Washington 03/27/2013 42,552.00 5,320,000.00 5,286,696.80 5,316,949.38 1.88% 0.02 0.65 0.825 No Calls.

3133EEZB9 Federal Farm Credit Bank 04/16/2015 42,629.00 5,000,000.00 4,995,050.00 5,000,000.00 1.77% 0.02 0.45 0.444 Bullet

3130A2T97 Federal Home Loan Bank 10/02/2014 42,641.00 5,000,000.00 5,001,200.00 4,994,637.25 1.77% 0.02 0.50 0.579 Bullet

812626R50 City of Seattle 06/04/2013 42,644.00 3,425,000.00 3,536,586.50 3,528,780.08 1.25% 0.01 3.00 0.541 Non Callable.

3130A3CW2 Federal Home Loan Bank 06/08/2015 42,660.00 5,000,000.00 5,000,800.00 4,998,808.79 1.77% 0.02 0.50 0.511 Bullet

3133EEM64 Federal Farm Credit Bank 05/19/2015 42,662.00 5,000,000.00 5,003,100.00 5,000,000.00 1.77% 0.02 0.48 0.473 Non callable.

3133EEYT1 Federal Farm Credit Bank 04/20/2015 42,663.00 2,000,000.00 1,999,580.00 2,000,000.00 0.71% 0.01 0.51 0.503 1x Call 10/20/2015. Con

3130A52W8 Federal Home Loan Bank 04/28/2015 42,671.00 5,000,000.00 4,994,600.00 5,000,000.00 1.77% 0.02 0.47 0.464 Quarterly Call 07/28/20

3130A53F4 Federal Home Loan Bank 04/28/2015 42,671.00 5,000,000.00 4,996,050.00 5,000,000.00 1.77% 0.02 0.50 0.493 Quarterly Call 07/28/20

3134G3S50 Federal Home Loan Mortgage Co. 10/22/2012 42,675.00 5,000,000.00 5,009,500.00 5,000,000.00 1.77% 0.02 0.63 0.616 No Call.

735389QU5 Port of Seattle WA 08/15/2014 42,675.00 250,000.00 253,657.50 253,004.52 0.09% 0.00 1.76 0.838 No Call.

3130A3GK4 Federal Home Loan Bank 11/13/2014 42,681.00 5,000,000.00 5,002,350.00 4,998,659.82 1.77% 0.02 0.60 0.612 Bullet

3133EEBU3 Federal Farm Credit Bank 11/20/2014 42,688.00 5,000,000.00 5,003,550.00 4,998,515.48 1.77% 0.02 0.60 0.613 Bullet

31358C7L4 Federal Nat'l Mtg. Assoc. 05/02/2013 42,689.00 4,250,000.00 4,196,322.50 4,220,207.07 1.49% 0.01 0.515 Bullet.

3133EEUS7 Federal Farm Credit Bank 03/23/2015 42,697.00 5,000,000.00 5,007,350.00 5,000,000.00 1.77% 0.02 0.63 0.617 Bullet

495026RY4 King County School District 06/23/2015 42,705.00 2,530,000.00 2,584,066.10 2,579,868.35 0.91% 0.01 2.00 0.909 Non‐Callable.

833240GJ7 Snohomish County School Distri 04/10/2015 42,705.00 350,000.00 356,779.50 356,895.36 0.13% 0.00 2.00 0.592 Non‐Callable.

313371PV2 Federal Home Loan Bank 05/07/2014 42,713.00 4,000,000.00 4,061,160.00 4,051,508.76 1.43% 0.01 1.63 0.71 Bullet.3134G66Q1 Federal Home Loan Mortgage Co. 06/15/2015 42,719.00 5,000,000.00 5,005,200.00 5,000,000.00 1.77% 0.02 0.63 0.616 Quarterly Call 09/15/3130A5UB3 Federal Home Loan Bank 06/30/2015 42,720.00 5,000,000.00 4,998,050.00 5,000,000.00 1.77% 0.02 0.55 0.542 Non-Callable.3134G7AH4 Federal Home Loan Mortgage Co. 06/23/2015 42,727.00 5,000,000.00 5,005,250.00 5,000,000.00 1.77% 0.02 0.65 0.641 Quarterly Call 09/23/3137EADU0 Federal Home Loan Mortgage Co. 04/14/2015 42,762.00 5,000,000.00 4,994,150.00 4,999,119.75 1.77% 0.02 0.50 0.504 Bullet3133ECG99 Federal Farm Credit Bank 03/08/2013 42,788.00 5,000,000.00 4,990,750.00 5,000,000.00 1.77% 0.02 0.66 0.651 Bullet3130A4F72 Federal Home Loan Bank 03/04/2015 42,790.00 5,000,000.00 5,009,500.00 4,999,164.79 1.77% 0.02 0.70 0.7 Bullet3134G4SZ2 Federal Home Loan Mortgage Co. 01/28/2014 42,853.00 5,000,000.00 5,015,750.00 5,000,000.00 1.77% 0.02 1.00 0.986 Call 1x 01/28/2016.3133ECPJ7 Federal Farm Credit Bank 05/16/2013 42,871.00 5,000,000.00 4,985,550.00 5,000,000.00 1.77% 0.02 0.69 0.724 Callable: 05/16/20143134G6W41 Federal Home Loan Mortgage Co. 05/29/2015 42,880.00 5,000,000.00 5,000,650.00 5,000,000.00 1.77% 0.02 0.80 0.789 1x Call 11/25/2015.163123MM1 Chelan County Public Utility D 05/22/2015 42,887.00 2,000,000.00 1,957,520.00 1,973,397.95 0.70% 0.01 0.68 0.7 Zero Coupon3136G0P96 Federal Nat'l Mtg. Assoc. 10/17/2012 42,933.00 5,000,000.00 4,985,900.00 5,000,000.00 1.77% 0.02 0.88 0.863 CALL DATE 04/17/13136G1ZD4 Federal Nat'l Mtg. Assoc. 03/28/2014 43,006.00 5,000,000.00 5,016,950.00 5,000,000.00 1.77% 0.02 1.13 1.292 1x Call 03/28/2016.3134G5MW2 Federal Home Loan Mortgage Co. 05/06/2015 43,038.00 5,000,000.00 4,999,500.00 5,000,000.00 1.77% 0.02 1.10 1.085 Quarterly Call 07/30/


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