quarterly financial report q2 2013 - vancouver, washington · activity and increasing housing...

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Quarterly Financial Report

Second Quarter 2013

Second Quarter 2013 Financial Report City of Vancouver 1

Second Quarter 2013 Financial Report (This report contains un-audited financial information as of September 4, 2013)

Table of Contents

Section Page

I. Executive Summary 3 II. Economic Report 4 III. Financial Results 12 IV. Outstanding Debt 24 V. Investments 24 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 officially is out of the recession. Estimated annual growth in real U.S. Gross Domestic Product for the second quarter was 2.5%, according to a preliminary estimate released by the Bureau of Economic Analysis, up from a revised 1.1% annualized rate experienced in the first quarter. The national unemployment rate continued to decline through the second quarter reaching 7.6%, slightly below the 7.8% rate experienced at the end of 2012. General Fund revenues in the second quarter of 2013 totaled $66.4 million, or 51% of the forecast for the year. Some revenue sources came in slightly higher, some – slightly lower, overall resulting in the actual performance meeting the forecast. Revenues in all city funds seem to be on track and will likely come in as forecasted by the end of 2013.

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 82% 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.

General Fund expenditures in the second quarter of 2013 were $54.3 million, or 42% of the budget, approximately $1.9 million higher than the comparable 2012 expenditures. The General Fund operating cash balance was $44.9 million at the end of June 2013.


II. Economic Report The world economy continued to improve during the second quarter of 2013. The annual rate of growth of Gross Domestic Product in the second quarter of 2013 is estimated to be 2.5%, according to a preliminary estimate released by the Bureau of Economic Analysis. For all of 2012, Real GDP increased by 2.2%.1 Most economic indicators are showing signs of improvement: the unemployment rate is slowly falling, the housing sector is showing more activity and increasing housing prices, and consumer confidence continues to improve. The following is specific information related to some of the major national economic indicators. The national seasonally adjusted unemployment rate has remained at 7.6% in June, 0.2% lower than that at the end of 2012. The numbers of marginally attached and discouraged workers are slowly decreasing as well. The marginally attached workers are not considered unemployed because they did not actively look for work in the four weeks preceding the employment survey.

The July 30-31 press release from the Federal Open Market Committee confirmed that “. . . economic activity expanded at a modest pace in the first half of the year. Private-sector employment increased further in June, but the unemployment rate was still elevated. Consumer price inflation slowed markedly in the second quarter, likely restrained in part by some transitory factors, but measures of longer-term inflation expectations remained stable.”2

• One of the major measures of consumer confidence, the Conference Board’s compiled Index of Consumer Confidence, indicates that by the end of the second quarter of 2013, the index had reached the best reading since the beginning of the economic recovery of 81.4, compared to a reading of 58.6 at the end of December 2012. The largest increases are attributed to improvements of consumer expectations and assessments of the present situation. The Index is based on consumer perceptions of current business and employment

1 http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm, Bureau of Economic Analysis 2 Minutes of the Federal Open Market Committee, July 30-31, 2013, http://www.federalreserve.gov/monetarypolicy/fomcminutes20130731.htm


http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

conditions, as well as consumer expectations for the following six months period. The level of consumer confidence is associated with consumer anticipation of the future developments in the economy and is utilized as an indicator of the likely general direction of consumer spending in the coming months.

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. The US LEI increased 1.9% in the first half of 2013, pointing to slow growth environment. According to Ken Goldstein, economist at the conference Board, “some segments of the economy are turning around faster than others, resulting in positive but moderate growth. The biggest uncertainties remain the pace of business spending, the improvements in consumer spending power and the impact of slower global growth in U.S. exports.”3

3 The Conference Board US Business Cycle Indicators, US Leading Economic Indicators for the U.S. Increases, July 18, 2013, http://www.conference-board.org/pdf_free/press/PressPDF_4880_1374136251.pdf


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

forecast states that the “Washington economy continues to expand at a moderate pace.” “The payroll data shows continued growth in the number of jobs. But the hours and earning data… indicates that private sector average hourly earnings rose through the recession but stopped growing in mid-2011”.4 Washington housing construction is recovering faster than anticipated and home prices are rising. The outlook for improvement remains positive. State revenues are coming in slightly higher than the forecast due to the timing issues. State revenues are anticipated to come higher than anticipated by the end of the year.

• At the national level, housing starts in the second quarter of 2013 were on a slightly

declining trend, following an upward trend through May of this year. The declines were driven by a downswing in the multifamily component as well as by atypically wet weather on the East coast. Permits also dropped sharply on a plunge in the multifamily component. 5 Housing starts measure construction of residential units per month. The graph below shows national data.

4. Economic and Revenue Update, State Economic and Revenue Forecast, State of Washington, http://www.erfc.wa.gov/publications/documents/jun13pub.pdf, p.25-26. 5 http://www.nasdaq.com/markets/us-economic-calendar.aspx


http://www.erfc.wa.gov/publications/documents/jun13pub.pdf

• The City of Vancouver experienced an unprecedented slowdown in the number and valuation of residential permits issued in late 2008 through 2011. The number of residential permits is the local data equivalent for housing starts. In 2012, the City saw a welcome change in this trend – a significant increase in the number of residential units permitted and their respective valuation. In 2012, there were 292 single-family residential permits issued valued at $27 million, compared to 98 single-family residential permits issued in 2011, valued at $10.6 million. There were 131 single family permits issued through the second quarter of 2013, valued at $13.3 million.

• Similarly to the national trends, the City has been seeing an increase in the number of multifamily units permitted within the city limits. A total of 323 multi-family units were permitted in 2012, consistent with 2011 which had 317 multi-family permits issued. So far in 2013, a total of 535 new multifamily units were permitted.


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

• There has been a significant decline in commercial permitting activity in years 2009-2010, reflecting the downturn in the economy. The trend somewhat changed in 2011, when several large commercial projects were permitted, several of those in the Port of Vancouver. There were 36 commercial permits issued in 2011, valued at $186.8 million, compared to 34 commercial permits issued in 2012, valued at $72.3 million. In the first half of 2013 the number and valuation of commercial permits issued was on the lower historical end.


Data provided by the Department of Review Services, 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 declined from 3% at the end 2011 to an annual rate of 1.8% through June 2013, as reported by the U.S. Department of Labor. Inflation has been fluctuating between 1.5% and 2% annual estimated rates. The graph below shows annualized inflation rate changes.


• 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 2012 was 2.1%, compared to 3.1% in 2011. Energy prices decreased 0.3%, mainly due to a decline in the price of natural gas service. Food prices increased 0.5% in the second half of 2012. The metro index reading for the first six months of 2013 will be published in late August of 2013.

Data prepared by Bureau of Labor Statistics6

• According to the Bureau of Labor Statistics, the county and the city unemployment rate at the end of July 2013 were at 8.6 and 8.9 percent, respectively, more than a whole percentage point higher than the Portland Metro estimated unemployment rate. The Bureau of Labor statistics has revised the City’s unemployment rate back to January of 2009. The resulting rate is significantly higher than was previously indicated, but closer in line with the Clark county unemployment rate.

Data provided by the Bureau of Labor Statistics

6 Consumer Price Index, Portland Area –http://bls.gov/ro9/cpiport.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. Data through June 2013 indicates that locally, prices have started to increase significantly. Housing prices for the Portland metro area are estimated to have increased by 11.8% on a year-over-year basis as of June 2013.

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

• The median home price for Clark County reached the same median home price range experienced in the county in 2004. The median sale price in Vancouver at the end of June was a little higher than that in June of 2009. It is estimated at $204,000, representing an 11.8% increase in value over the last 12 months. The graph below represents home sales and changes in the median home price over time.


Source of Data: Zillow

III. Financial Results General Fund REVENUES

General Fund revenues through the second quarter of 2013 totaled $66.4 million, or 51% of the forecast for the year, very consistent with the data from the last four years. 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 82% 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 2013 taxes. The total City

of Vancouver levy rate in 2013 is $3.1722 per $1,000 of assessed value. • The City experienced a 20.05% combined reduction in assessed valuation between 2009

and 2011, following by an additional 3.5% reduction in 2012 for 2013 taxes. 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.

• A total of $23.1 million was collected in the first half of 2013 in property taxes, in line with

projections


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 $13.1 million in sales tax revenue was received in the first half of 2013, or 50% of

forecast. Collections are approximately $0.5 million higher than those in 2012. It is likely that Sales Tax revenue will exceed projections by approximately $500 to $600 thousand by the end of the year. In mid-2011, the City started receiving monthly installments of the state sales tax credit for the Local Revitalization Program, ($220,000 annually). This new sales tax revenue helps fund the bonds issued in 2011 to fund the Waterfront Access project. The new revenue is included in the Sales Tax projection for the year and in the information on revenue received below.


• Growth in taxable retail sales in past years was fueled by a robust real estate market and new construction. Construction and real estate related sectors (construction, building materials/hardware, furniture and home furnishings and appliances) had a double-digit growth in the City between 2005 and 2007. Retail sales at the national level are higher than those in 2008. In 2012, two major sectors of sales tax categories saw improvement in the city. These were related to retail trade and construction. City sales tax receipts for these two categories attributed to $800 thousand of $1.3 million increase of 2012 collections over the 2011 collections. This trend continues into 2013.

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 $9.4 million in the first half of 2013,

matching collections during the comparable period of time in 2012. The City received a $1.8 million Brokered Natural Gas one-time reimbursement payment for deferred taxes from 2009 and 2010 which took place in early 2011. It was a one-time event.

• Natural gas tax revenues in the second quarter of 2013 totaled $1.7 million, or 61% of the

forecast for the year, approximately $150 thousand higher than was received through the second quarter of 2012. Collections to-date are lower than forecast.

• Telephone tax revenues through the second quarter of 2013 totaled $2.5 million, or 48%

of the forecast for the year, approximately $150 thousand below the 2012 second quarter collections. Over the last three years, the City has seen a 7.8% reduction in revenues from this tax. So far, the collections in 2013 are approximately 6.7% below the 2012 collections during the first half of the year. The forecast for the year anticipated a 2.2% reduction in 2013 compared with the 2012 revenues. It is likely that revenues will not


meet the annual forecast for this revenue source to a magnitude of approximately $200 thousand by the year end.

• A total of $4.3 million was collected in electrical tax revenue in the first two quarters of

2013, approximately $100 thousand below collections during the same period of time in 2012.

• The revenue from cable franchise fees received through the second quarter of 2013 totaled $1 million, or 54% of the forecast for the year, very close to the 2012 second quarter collections.

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%.

• In the first half of 2013, the City received $8.6 million in utility tax on city-owned utilities,

compared with $8.2 million collected during the comparable time period in 2012. The underlying utility rates were increased by 5% in Water Utility in 2013, so the increase in revenues is primarily driven by the rate increase.


• In 2012, residential water revenues generated 82% of the total water user revenues, while residential sewer fee revenues made up 69% of the total sewer user revenues. Similar proportionality of revenue is anticipated to take place in 2013.

Grant & Entitlement Revenues • Grant revenues recognized in the first half of 2013 were $0.3 million, or 9% of the

anticipated grant revenues to be received in 2013. The majority of grants reimburse the City for the eligible expenses after these expenditures occur.

Charges for Goods and Services In the first half of 2013, the City recorded approximately $3 million in charges for services, not taking into account internal charges for services provided by City agencies to each other. The largest program areas that generate fee revenue are the Development Review Services and Recreation programs. 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 in 2011 were 10% greater than those in 2010. In 2012, permit collections remained at the level of the 2011. In the first half of 2013, only $226 thousand was collected in planning permits, compared to collections of $309 thousand in the first half of 2012. Planning permit revenue in the General Fund in 2013 is coming in at the 2010 levels, significantly reduced from the 2012 levels, and will likely be $150 thousand short of forecast by year end.

Recreation Program Fees


A total of $2.5 million in recreation fees, rentals, donations, etc. was collected in the first half of 2013, almost exactly the amount collected in the first half of 2012. In 2012, reductions on the expenditures side were implemented to balance them to the lower fee and permit revenues.

EXPENDITURES

• General Fund expenditures in the first quarter of 2013 were $54.3 million, or 42% of the budget, approximately $1.8 million higher than the comparable 2012 expenditures.

• Expenses vs. budget by category within the General Fund are shown in the chart below. The pace of spending appears to be in line with that experienced in 2012 and will likely result in budget savings by the end of the year.

• Salaries and benefits expenditures totaled $21.5 million in the first half of 2013, compared to the budget of $46.9 million and $22 million spent in the first half of 2012.

• General Fund expenditures in the supplies and services category in the first half of 2013 were at $5.1 million, approximately $0.4 million lower than those in the first half of 2012.

• 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 and the fire and street funds. Expenditures in the Intergovernmental category reached $24.2 million, approximately $2.1 million higher than those in the first half of 2012.


Cash Balance

• The General Fund operating cash balance was $44.9 million at the end of June 2013. This is $10.7 million higher than the cash balance at the end of June 2012.

• The General Fund emergency reserve was $10.1 million at the end of June 2013, compared to $8.9 million in June 2012. 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 undesignated fund balance in the General Fund at the end of 2012 was $50.4 million. A portion of the fund balance of $0.9 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 $1 million represents the grant revenue received in advance of expenditures and the liabilities resulting from accepting the COPS grant in police. The Committed balance has been represents reserves in accordance with the City Financial Policies: the City Emergency reserve of $9.9 million, Revenue Stabilization reserve of $3.2 million, reserve restricted for capital purposes of $0.9 million and the working capital of $26 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 million represents funding of 50% of accrued compensated absences. The remaining portion of the balance of $4.8 million was unassigned at the end of 2012. A portion of the Unassigned balance will be utilized during the 2013-2014 biennium to fund carry-forward appropriation requests.

Street Fund • Expenditures in the Street Fund were at $4.8 million, or 30% of the 2013 budget, which is

comparable to the $4.2 million spent in the first half of 2012. Due to the timing of the construction season, expenditures tend to be significantly higher in the second and third quarters of the year.

• Second quarter 2013 Street Fund revenues, excluding a budgeted general fund transfer,

totaled $2.5 million, compared to $2.2 million collected in the first half of 2012. 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.

• The first half of 2013 MVFT revenues were $1.6 million, in line with MVFT collections in the first

half of 2012. 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 since the housing bubble in 2005 and 2006. The 2011 and 2012, collections showed some improvement over the low in 2010. The first half of 2013 revenue is consistent with collections in the first quarter of 2011 and a little higher than in the first quarter of 2012. The real estate market is showing signs of improvement. It is highly likely that the city will see increased REET revenues in the remainder of this year.

• REET revenue received in the first half of 2013 totaled $0.7 million, approximately $0.2 million

higher than the comparable 2012 collections. The graph below demonstrates fluctuations in REET collections over the past eleven years. It is highly likely REET collections by the year end will exceed the forecast by approximately $500 thousand.


Consolidated Fire Fund

• The City has an Operating Fire Fund and the Capital Fire Fund, largely funding vehicle replacements and set up. The Operating Fire Fund is fully supporting the Capital Fire Fund. Financial information in Attachment A and B contains the combined financials of the operating and capital funds, including the interfund transfer. The graph below represents the operating funds’ financial information.

• Operating Fire Fund revenues (exclusive of General Fund support and the Fire District 5 transfer) through the first half of 2013 were $1 mil, mostly representing permit fees and grant revenue.


• Total operating Fire Operating expenditures through the first quarter were $15.5 million, including the transfer from Fire Operating to Fire Equipment Fund.

Building Inspection Fund

• Building inspection fee revenues received in the first half of 2013 totaled $2.3 million approximately $800 thousand higher than the revenues received during the first half of 2012. There is a noticeable increase in valuation of commercial permits – several large projects were permitted in March and multi-family residential permitting is at its highest levels.

• Building Fund expenditures were at $2 million in the first half of 2013, or 55% of the budget,

comparable to the amount spent during the first half of 2012.

• The fund balance in the Building fund anticipates funding 18 months of permitting activity after the revenue is collected. A portion of the fund balance in the Building Fund is being utilized to fund a replacement of the Tidemark permitting system with a new Hansen system and to enable on-line permitting.

Parking Fund

• Fee and fine revenues in the first half of 2013 were $1 million, slightly lower than the first half of 2012 collections.

• The General Fund support of the Parking fund remained at the $1.25 million level in 2013. Over time, the fund is anticipated to become self-supporting.


• Operating expenses in the first half totaled $1.4 million, slightly lower than those in the first

half of 2012.

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 $11.6 million in the first half of 2013, or 45% of the budget. The amount is approximately $900 thousand higher than collected in the first half of 2012. There was a 5% increase in rates effective in 2013. Private total contributions totaled $0.7 million, approximately $200 higher than received during a comparable time period in 2012.

• Expenditures in the Water fund in the first half of 2013 totaled $14.4 million, or 39% of the

budget. Sewer

• Sewer charge revenues in the Sewer Fund came in at $18.1 million in the first half of 2013, approximately $0.45 million above the comparable 2012 revenues. Sewer rates were increased by 9% in 2011, 6.5% in 2012 and an additional 2.5% in 2013.

• There has been a significant drop in the amount of private development contributions

received resulting from the sluggish development activity in the City. Sewer fund borrowed $5.3 million from Water fund to support its operations in 2009, $3.2 million in 2010, and $2 million in 2011 to address the insufficient level of revenues compared to the fund’s expenditures. So far in 2013, the fund borrowed $2 million out of the estimated need of $2.5 million.

• Sewer expenditures through the second quarter of 2013 totaled $24.7 million, in line with the

2012 spending pattern. Storm Water

• A total of $5.5 million in storm water fee revenue was received in the first half of 2013, or 51% of the forecast. The Storm Water rates were increased by 5% in 2013. Overall, the expenditures in the Storm Water fund through the second quarter of 2013 were $4.8 million, or 42% of the budget for the year.


IV. Outstanding Debt

• At the end of the second quarter of 2013, the City had about $114.1 million of general obligation (G.O.) debt outstanding and approximately $50 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 3.91% while the average interest rate for the City’s revenue bond debt is 3.94%.

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 June suggests that

economic activity has been expanding at a moderate pace. Labor market conditions have shown some improvement in recent months, on balance, but the unemployment rate remains elevated. Household spending and business fixed investment advanced, and the housing sector has strengthened further, but fiscal policy is restraining economic growth. Inflation has been running somewhat below the Committee's longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices. Longer-term inflation expectations have remained stable.

• The FOMC’S statutory dual mandate is to foster both maximum employment and price stability. The Committee expects that, with appropriate policy accommodation, economic growth will proceed at a moderate pace and the unemployment rate will gradually decline toward levels the Committee judges consistent with its dual mandate. Although strains in global financial markets have eased somewhat, the Committee continues to see downside risks to the economic outlook. The Committee also anticipates that inflation over the medium term likely will run at or below its 2 percent objective.

• The FOMC also decided to keep the target range for the federal funds rate at 0 to ¼

percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate as long as the unemployment rate remains above 6-1/2 percent with inflation between one and two years ahead is projected to be no more than ½ percentage point above the committee’s 2 percent longer-run goal and longer term inflation continues to be anchored.

• The overall yield curve increased during the second quarter of 2013. The yield on the three-

month Treasury has decreased ending at 0.061% at the end of the second quarter. The six-month Treasury yield has maintained at 0.107%. The yield on the two-year Treasury has increased to 0.36%. The thirty-year Treasury yield increased, ending the second quarter at 3.52% from 3.10%. Market risk of the City’s portfolio is low. Investment maturities have increased 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 2013 was $237 million compared to $230.5 million on March 31, 2013. The portfolio had an average yield of 0.38% year to date, which is 0.07% less than the projected yield of .45% for 2013. 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 26 bps higher than the State Investment Pool, which had an average yield of 0.123%. The State Pool has a weighted average maturity of 40 days. The City’s investment portfolio weighted average maturity is approximately 12 months. Longer-term portfolio yields will outperform shorter-term portfolio yields in a falling interest rate environment. Interest revenue distributed through the third quarter of 2013 to all funds is approximately $422,280 compared to $552,215 during the same period of 2012. 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. The table below provides this information. Seven funds required interfund loans through the first half of 2013. City of Vancouver Outstanding Interfund LoansThrough Second Quarter 2013

Balance InterestOutstanding Interest Expense

Fund Description 06/30/13 Lending Fund Rate Paid in 2013 Repayment Plan

330 Transportation Capital -$ 001 0.38% 867.65$

Loan due to timing between when deposits received vs.

expenditures paid

330 Transportation Capital -$ 001 0.38% -$ Loan for LID - until bonds are

issued

337 VNHR Property Capital -$ 001 0.38% 167.92$

Loan due to timing between when deposits received vs. expenditures paid - Grant

343 Parks Capital -$ 001 0.38% 58.20$


expenditures paid

443 Drainage Construction Fund -$ 448 0.38% 61.92$


expenditures paid

475 Sewer Utility Fund 702,856$ 445 0.38% 163.14$


expenditures paid

477 Sewer System Development Fund -$ 475 0.38% 19.43$


expenditures paid

478 Sewer Construction Fund 470,163$ 448 0.38% 572.92$


expenditures paid

Total Outstanding Interfund Loan Balance 1,173,019$


Quarterly Expense SummaryCity of VancouverSecond Quarter of 2013 Financial Report

Attachment A

2011 Jun-2011 % of 2012 JUN-12 % of BUDGET JUN-13 Percent ofActual Actual EOY Actuals Actual EOY 2013 Actual 2013 Budget

GENERAL FUNDCity Council 361,816 167,398 46% 409,233 165,979 41% 453,094 191,389 42%City Manager's Office 2,392,922 1,119,083 47% 2,449,760 1,121,246 46% 2,789,524 1,120,006 40%Legal Services 3,193,747 1,531,983 48% 3,323,409 1,594,058 48% 3,379,846 1,639,530 49%Community Economic Development 5,259,127 2,567,883 49% 4,654,404 2,270,247 49% 4,557,282 2,166,697 48%Parks Administration 1,300,966 606,103 47% 1,142,838 509,183 45% 1,144,238 542,469 47%Parks, Trails, & Natural Resources 936,037 448,230 48% 924,671 442,401 48% 1,099,016 469,476 43%Recreation Services 6,678,995 3,081,079 46% 5,457,937 2,671,707 49% 5,543,030 2,484,215 45%Police 31,358,106 15,851,276 51% 31,215,355 16,063,062 51% 31,845,565 16,385,132 51%Transportation 1,240,793 744,848 60% 691,640 365,167 53% 776,466 322,016 41%Grounds Maintenance 2,789,485 1,194,523 43% 2,801,905 1,223,589 44% 2,963,966 1,354,912 46%Facilities Maintenance 2,817,771 1,227,309 44% 3,247,010 1,368,880 42% 3,297,485 1,347,960 41%Financial and Mgmt Services 3,774,860 1,836,367 49% 3,949,047 1,864,021 47% 4,033,298 1,744,754 43%General Services 413,960 174,645 42% 306,371 158,985 52% 544,365 133,924 25%Information Technology 3,094,618 1,408,532 46% 2,696,927 1,358,091 50% 3,474,414 1,114,874 32%COBRA 266,371 156,664 59% 127,382 81,053 64% 180,000 36,625 20%Human Resources 1,275,453 603,741 47% 1,225,425 579,879 47% 1,392,967 590,287 42%

Subtotal Non-Gen. Governmental 67,210,584 32,759,888 49% 64,623,312 31,839,047 49% 67,474,556 31,644,265 47%General Governmental

Child Advocacy Intervention 235,600 141,360 60% 345,284 196,202 57% 329,850 152,316 46%City Cable Programming 330,630 330,630 100% 340,549 170,274 50% 441,567 220,782 50%Fire District #6 16,042 16,042 100% 16,392 16,392 100% 16,000 15,235 95%Emergency Mgmt (CRESA) 134,120 100,590 75% 138,525 103,894 75% 139,538 104,735 75%Air Pollution Control Authority 53,985 53,985 100% 54,115 54,115 100% 56,166 53,109 95%Humane Society 150,769 48,463 32% 212,236 45,985 22% 335,769 107,241 32%Animal Control 90,101 48,167 53% 199,403 99,702 50% 433,625 99,403 23%Alcoholism Support 29,223 10,116 35% 40,513 8,517 21% 46,697 7,336 16%Regional Transp Council 21,300 21,300 100% 21,300 21,300 100% 21,300 21,300 100%Election Support 368,592 - 0% 283,313 9,102 3% 350,000 - 0%Celebrate Freedom 110,000 110,000 100% 110,000 110,000 100% - - Association of Washington Cities 142,059 71,723 50% - - 78,062 70,726 91%Opportunity Reserve 49,495 31,726 64% 138,970 33,519 24% 95,000 26,140 28%Miscellaneous 2,342,128 68,208 3% 244,027 98,608 40% 3,237,348 171,153 5%Public Defender 617,292 360,798 58% 643,050 364,728 57% 706,723 378,971 54%County Jail Costs 3,355,126 752,801 22% 3,485,238 817,189 23% 4,644,129 870,872 19%County Corrections Costs 1,070,118 488,024 46% 1,123,636 471,049 42% 2,031,337 430,499 21%County District Court Costs 1,125,508 282,679 25% 1,018,965 279,900 27% 1,652,305 286,863 17%General Obligation Debt Payment 6,963,275 1,263,686 18% 7,271,967 1,225,444 17% 7,752,679 1,044,918 13%General Govt Support 39,450,986 15,725,623 40% 35,359,614 16,507,279 47% 38,828,806 18,632,931 48%

Subtotal General Govermental 56,656,347 19,925,919 35% 51,047,097 20,633,199 40% 61,196,901 22,694,531 37%Total General Fund 123,866,931 52,685,808 43% 115,670,409 52,472,246 45% 128,671,457 54,338,796 42%g ( g ) g ( g )

SPECIAL REVENUE FUNDSStreet 14,368,554 5,322,721 37% 16,187,971 4,174,637 26% 16,092,920 4,751,517 30%Fire Operating Fund 29,487,814 13,653,125 46% 31,721,473 14,653,032 46% 31,864,996 15,261,042 48%Fire Capital Fund 1,198,379 940,280 78% 386,102 260,973 68% 2,883,076 202,606 7%Drug Enforcement and Investigative Funds 143,652 72,121 50% 125,130 77,058 62% 116,760 45,708 39%Community Development Block Grant 2,318,532 739,660 32% 2,637,342 1,023,245 39% 1,870,800 713,061 38%Tourism 631,871 266,516 42% 1,143,903 500,932 44% 1,241,827 312,084 25%Criminal Justice/LLEBG 113,343 56,670 50% 106,515 53,256 50% 103,023 - 0%Real Estate Excise Tax - I 1,645,699 467,686 28% 1,473,784 475,830 32% 1,977,908 531,729 27%Transportation Special Revenue 3,170,330 1,027,134 32% 2,195,157 711,762 32% 2,301,549 614,186 27%Parks & Recreation Special Revenue 50,697 30,746 61% 51,523 23,186 45% 31,561 28,297 90%Parks Construction - Residual REET 489,591 19,480 4% 165,307 132,246 80% 65,000 36 0%Downtown Initiatives 92,986 53,156 57% 93,507 56,128 60% 95,381 50,792 53%VNHR Properties 614,257 303,623 49% 223,647 120,756 54% 191,299 65,097 34%Senior Messenger 271,020 141,475 52% 263,217 121,972 46% 310,279 130,040 42%TIF Funds 586,788 202,948 35% 1,532,710 472,502 31% 5,374,468 103,886 2%PIF Funds 894,826 765,221 86% 553,803 491,201 89% 6,202,000 1,466,697 24%Miscellaneous Special Revenue Funds 250,718 250,000 100% - - - -


Quarterly Expense SummaryCity of VancouverSecond Quarter of 2013 Financial Report

Attachment A

2011 Jun-2011 % of 2012 JUN-12 % of BUDGET JUN-13 Percent ofActual Actual EOY Actuals Actual EOY 2013 Actual 2013 Budget

DEBT SERVICE FUNDSG O Debt Service Fund 11,224,357 2,504,590 22% 30,629,622 18,888,036 62% 11,928,279 2,358,722 20%L I D Debt Fund 4,035 - 0% 3,832 - 0% 3,630 - 0%

ENTERPRISE FUNDSStorm Water 10,975,868 5,110,341 47% 10,215,913 4,602,970 45% 11,405,037 4,842,782 42%Water 24,106,118 13,155,821 55% 25,622,770 13,916,748 54% 36,835,797 14,447,849 39%Sewer 37,353,990 24,302,553 65% 38,060,728 24,833,424 65% 39,860,534 24,675,836 62%Building Inspection 3,509,960 1,878,166 54% 3,427,836 1,930,981 56% 3,659,714 2,025,672 55%Solid Waste 2,062,335 840,704 41% 2,103,487 923,613 44% 2,902,569 897,062 31%Parking 3,233,868 1,824,844 56% 3,088,635 1,648,822 53% 2,856,324 1,431,925 50%Tennis Center 1,011,666 608,377 60% 1,108,335 543,896 49% 1,042,840 526,597 50%Airpark 482,300 311,538 65% 476,996 343,843 72% 1,341,785 288,769 22%

INTERNAL SERVICE FUNDSFire Shop Fund 389,704 - 0% 628,964 628,964 100% - - Equipment Services Operations Fund 4,396,367 2,177,373 50% 4,468,359 2,287,201 51% 5,562,499 2,382,506 43%Equipment ER&R Capital 177,423 1,405,226 792% 209,436 1,819,754 869% 2,656,385 1,269,724 48%Technology ER&R 2,259,483 1,285,271 57% 2,298,460 1,135,818 49% 3,601,363 1,850,654 51%Self Insurance 5,094,655 2,095,297 41% 4,456,630 1,392,697 31% 4,945,809 2,468,835 50%Self Insurance Benefits 13,617,240 7,835,380 58% 13,831,568 7,504,060 54% 14,427,158 7,092,472 49%Print Shop & Mail Services 214,758 118,539 55% 187,928 92,897 49% 254,402 79,946 31%

AGENCY FUNDSSWAT Team 130,846 82,846 63% 179,241 84,374 47% 179,560 99,862 56%Police Pension 882,708 450,059 51% 828,249 412,302 50% 1,470,263 415,072 28%Fire Pension 1,690,418 869,456 51% 1,747,250 912,222 52% 2,625,904 825,479 31%Cable TV 1,547,702 925,805 60% 914,206 452,480 49% 977,410 498,069 51%

Notes1. This report contains the unaudited results through the end of 2nd Quarter of 2013.

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 2013 Financial Report

Attachment B

9/17/2013

2011 2012 20132011 Period Ending % of 2012 Period Ending % of Forecast Period Ending % of

ADJ-11 JUN-11 EOY ADJ-12 JUN-12 EOY DEC-13 JUN-13 ForecastGENERAL FUND #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!Tax Revenue

Property Tax 40,334,028 22,129,208 55% 40,947,711 22,613,568 55% 41,379,237 23,088,501 56%Sales Tax 24,701,043 12,212,640 49% 26,165,994 12,550,913 48% 26,424,026 13,111,418 50%Electrical Tax 7,987,586 4,474,461 56% 7,875,459 4,400,989 56% 7,262,943 4,277,152 59%Natural Gas 4,506,777 3,498,108 78% 2,357,432 1,503,521 64% 2,730,000 1,663,069 61%Telephone 5,483,887 2,766,901 50% 5,269,838 2,663,646 51% 5,155,499 2,485,740 48%Cable Franchise Fee 1,755,859 437,624 25% 1,797,577 867,942 48% 1,703,535 927,108 54%Water/Sewer/Storm Water 13,177,598 6,151,739 47% 13,920,197 6,354,979 46% 14,513,940 6,759,852 47%Solid Waste Utility Tax 3,614,091 1,800,401 50% 3,633,251 1,799,842 50% 3,767,346 1,855,596 49%Gambling and Leasehold Taxes 622,875 312,113 50% 627,300 346,120 55% 614,829 357,763 58%

Subtotal Tax Revenue 102,183,745 53,783,194 53% 102,594,758 53,101,522 52% 103,551,355 54,526,197 53%Business Licenses 819,683 435,095 53% 871,744 467,122 54% 986,559 441,545 45%Grants & Entitlements 2,251,760 920,740 41% 1,844,092 898,978 49% 3,469,196 304,198 9%State Shared Revenues 2,916,994 1,040,697 36% 3,176,881 1,285,050 40% 2,536,584 733,474 29%Parks Contract with Clark County 891,694 371,293 42% 802,180 242,406 30% 880,361 291,898 33%Charges for Services

Planning Permits 510,225 313,597 61% 525,024 309,731 59% 537,345 226,346 42%Recreation Program Fees 4,744,041 2,792,359 59% 4,336,076 2,451,407 57% 4,047,129 2,471,341 61%Interfund Service Charges 7,209,003 3,647,543 51% 8,161,464 4,021,397 49% 8,619,085 4,409,095 51%Other Charges & Services 684,254 370,630 54% 726,991 376,204 52% 811,498 335,004 41%

Subtotal Charges for Services 13,147,523 7,124,130 54% 13,749,555 7,158,740 52% 14,015,057 7,441,785 53%District Court 1,621,065 813,387 50% 1,696,616 918,844 54% 1,550,027 795,964 51%Miscellaneous 3,319,050 1,415,439 43% 4,688,231 1,308,264 28% 3,619,533 1,817,979 50%Operating Transfers 223,442 70,554 32% 324,834 113,546 35% 481,097 23,398 5%

Total General Fund 127,374,954 65,974,528 52% 129,748,892 65,494,472 50% 131,089,769 66,376,439 51% SPECIAL REVENUE FUNDSStreet Fund -

Real Estate Excise Tax 1,373,945 512,440 37% 1,315,273 475,841 36% 1,269,509 739,244 58%Motor Vehicle Fuel Tax 3,371,269 1,657,633 49% 3,316,804 1,566,838 47% 3,422,007 1,589,603 46%Permits 521,769 154,938 30% 487,688 190,011 39% 1,071,093 202,032 19%Miscellaneous 131,303 99,532 76% 31,818 9,988 31% 20,000 7,416 37%Operating Transfers 9,244,038 2,267,540 25% 9,847,687 4,709,099 48% 9,822,342 4,908,994 50%

Total Street Fund 14,642,324 4,692,083 32% 14,999,270 6,951,778 46% 15,604,951 7,447,288 48%Consolidated Fire Fund

Service Charges-Fire Dist. #5 8,178,538 3,890,314 48% 8,081,293 3,794,835 47% 7,938,954 24,724 0%Permit/Other Fees 584,496 407,865 70% 619,559 377,276 61% 370,000 461,421 125%Miscellaneous 527,361 90,348 17% 2,001,105 523,958 26% 4,402,196 589,999 13%Operating Transfers 23,331,051 12,342,691 53% 23,366,884 11,712,940 50% 24,074,815 11,993,804 50%

Total Consolidated Fire Fund 32,621,446 16,731,218 51% 34,068,842 16,409,009 48% 36,785,965 13,069,948 36%Other Special Revenue Funds

Drug Enforcement 245,048 124,525 51% 249,414 159,999 64% 237,025 155,831 66%Community Development Block Gra 2,281,733 737,275 32% 2,831,446 864,882 31% 3,730,195 674,488 18%Tourism (469,529) 530,288 -113% 1,360,069 549,490 40% 1,260,000 633,482 50%Criminal Justice/LLEBG 207,351 106,674 51% 207,693 101,568 49% 212,378 104,376 49%Transportation Special Revenue 2,156,202 1,139,439 53% 2,344,410 1,254,041 53% 2,212,000 1,185,097 54%Real Estate Excise Tax - I 1,447,270 493,539 34% 1,284,225 437,920 34% 1,387,509 696,655 50%Parks & Recreation Special Revenue 67,704 31,494 47% 44,080 12,540 28% 15,000 27,294 182%Parks Construction - Residual REET 4,431 2,903 66% 849 588 69% 1,000 152 15%Downtown Initiatives 140,866 68,922 49% 156,473 79,606 51% 140,000 80,406 57%VNHR Properties 359,765 166,603 46% 304,809 159,080 52% 265,000 118,798 45%Senior Messenger 294,569 135,876 46% 307,428 120,157 39% 250,000 107,069 43%TIF Funds 628,765 146,445 23% 460,027 235,503 51% 297,500 300,096 101%PIF Funds 1,150,017 496,488 43% 1,890,143 579,525 31% 413,700 1,350,842 n/aMiscellaneous Special Revenue Fund 497,491 141,919 29% 321,569 126,697 39% 264,600 112,116 42%

DEBT SERVICE FUNDSG O Debt Service Fund 11,222,171 2,502,404 22% 30,630,580 18,888,036 62% 11,928,279 2,357,764 20%L I D Fund 2,165 347 16% 4,020 255 6% 5,900 134 2%

ENTERPRISE FUNDSStorm Water

Storm Drainage Fees 10,024,411 4,992,711 50% 10,129,259 4,949,230 49% 10,768,855 5,415,309 50%Private Capital Contributions 610,110 119,966 20% 433,989 396,134 91% - 2,399 Interfund Transfers 137,999 136,175 99% 56,237 - 0% 17,000 - 0%Miscellaneous 166,535 95,351 57% (87,340) 151,501 -173% - 84,479

Total Drainage Fund 10,939,055 5,344,203 49% 10,532,145 5,496,864 52% 10,785,855 5,502,186 51%Water


Quarterly Revenue SummaryCity of VancouverSecond Quarter of 2013 Financial Report

Attachment B

9/17/2013

2011 2012 20132011 Period Ending % of 2012 Period Ending % of Forecast Period Ending % of

ADJ-11 JUN-11 EOY ADJ-12 JUN-12 EOY DEC-13 JUN-13 ForecastWater Sales

Residential 4,045,927 1,871,697 46% 4,285,446 1,963,802 46% 4,250,275 1,771,937 42%Commercial 3,690,009 1,417,763 38% 4,210,064 1,580,518 38% 3,818,224 1,663,638 44%Governmental 16,392,277 7,042,123 43% 17,234,662 7,223,308 42% 17,960,304 8,175,375 46%

Subtotal Water Sales 24,128,214 10,331,583 43% 25,730,171 10,767,628 42% 26,028,803 11,610,950 45%Private Capital Contributions 1,448,381 453,862 31% 1,317,048 485,323 37% 575,000 688,882 120%Interfund Transfers 3,551,957 16,870 0% 3,284,767 2,434 0% 2,400,128 938 0%Miscellaneous 132,098 23,227 18% (41,464) 15,960 -38% 85,000 6,662 8%

Total Water Fund 29,260,649 10,825,542 37% 30,290,522 11,271,345 37% 29,088,931 12,307,432 42%Sewer

Sewer ChargeResidential 22,552,519 11,158,391 49% 23,891,064 11,857,138 50% 23,928,703 12,240,302 51%Commercial 10,534,674 4,971,043 47% 10,927,583 5,035,183 46% 11,224,927 5,117,739 46%Governmental 1,337,446 647,092 48% 1,394,254 701,289 50% 2,343,721 692,235 30%

Subtotal Sewer Charges 34,424,640 16,776,526 49% 36,212,901 17,593,610 49% 37,497,351 18,050,276 48%Private Capital Contributions 860,274 228,970 27% 485,826 201,627 42% 50,000 395,446 n/aInterfund Transfers 2,000,000 - 0% 600,599 600,000 100% 2,500,000 2,040,000 82%Miscellaneous 30,598 17,037 56% 60,593 40,003 66% 13,000 29,757 n/a

Total Sewer Fund 37,315,512 17,022,533 46% 37,359,919 18,435,241 49% 40,060,351 20,515,479 51%Building Inspection

Permits 3,151,046 1,685,481 53% 3,211,210 1,497,195 47% 2,264,000 2,255,343 100%Miscellaneous 127,682 52,390 41% 259,187 54,016 21% 30,000 72,621 242%Interfund Services 853,645 416,239 49% 627,768 313,884 50% 982,127 491,064 50%

Total Building Fund 4,132,373 2,154,110 52% 4,098,166 1,865,096 46% 3,276,127 2,819,027 86%Solid Waste

Franchise Fee-Solid WasteSolid Waste Utility Tax 2,007,402 1,003,701 50% 1,758,924 858,536 49% 1,500,000 830,890 55%Service Charges-Recycling 1,269,013 579,922 46% 1,080,465 582,051 54% 1,170,000 261,296 22%Miscellaneous 81,794 10,122 12% 16,470 (5,384) -33% 20,000 26,881 134%

Total Solid Waste Fund 3,358,209 1,593,746 47% 2,855,859 1,435,203 50% 2,690,000 1,119,067 42%Parking

Parking Fines 551,509 295,533 54% 591,512 293,038 50% 550,000 247,987 45%Parking Meters & Lots 1,569,560 789,850 50% 1,522,357 769,801 51% 1,386,000 749,807 54%Miscellaneous 10,346 31,482 304% (24,842) 28,864 -116% 10,000 (171,469) Operating Transfers 1,245,540 - 0% 1,245,540 - 0% 1,245,540 - 0%

Total Parking Fund 3,376,955 1,116,865 33% 3,334,567 1,091,703 33% 3,191,540 826,325 26%Tennis Center

Membership Fees 850,702 443,130 52% 938,694 489,851 52% 873,000 458,049 52%Instruction Fees 3,304 1,331 40% 2,791 1,503 54% 2,550 1,359 53%Miscellaneous 117,426 7,035 6% 13,643 5,885 43% - 6,474 Operating Transfers 211,265 60,672 29% 124,909 74,124 59% 64,926 48,972 75%

Total Tennis Center Fund 1,182,696 512,168 43% 1,080,037 571,363 53% 940,476 514,854 55%Other Enterprise Funds

Fire Emergency Equipment Services 3,114 3,060 98% 736 736 100% - - Pearson Airfield 695,511 310,399 45% 710,726 339,181 48% 1,248,371 294,764 24%Utility Customer Assistance 99,930 - 0% 12,538 4,294 34% 6,000 2,041 34%

INTERNAL SERVICE FUNDSEquipment Services Operations Fund 5,284,262 2,483,144 47% 4,620,646 2,283,698 49% 4,541,868 2,229,953 49%Equipment ER&R Capital 2,794,424 1,317,947 47% 3,215,778 1,478,231 46% 2,679,021 1,415,980 53%Technology ER&R 2,150,891 1,028,252 48% 2,236,197 1,026,577 46% 2,900,026 1,329,161 46%Self Insurance 4,117,208 1,806,576 44% 4,508,317 2,137,108 47% 4,283,476 2,051,412 48%Self Insurance Benefits 13,798,617 7,201,834 52% 13,358,023 6,723,806 50% 16,594,528 6,909,185 42%Printshop & Mail Services 278,448 149,046 54% 243,838 121,532 50% 276,066 110,547 40%

AGENCY FUNDSSWAT Team 143,354 67,047 47% 174,547 69,726 40% 169,325 81,612 48%Police Pension 1,075,256 537,565 50% 1,082,474 540,506 50% 1,080,000 540,129 50%Fire Pension 1,975,951 1,073,157 54% 1,950,605 1,051,333 54% 1,942,000 1,070,627 55%Cable TV 1,613,586 657,104 41% 958,516 397,223 41% 941,012 475,631 51%

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 purposes. Private capital contributions, adjustments for doubtful accounts and interfund transfers are included in this report and are categorized as "Misc." revenue.


Attachment CCity of VancouverOutstanding Debt - General Obligation BondsThrough Second Quarter 2013

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 17,810,000 4.08% 12/1/2018

Jun-03 To construct & equip the Firstenburg Community Center, and remodel Marshall & Luepke Center

18,520,000 510,000 4.43% 12/1/2013

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

18,090,000 13,405,000 4.07% 12/1/2026

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

14,785,000 11,820,000 4.25% 12/1/2025

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

14,570,000 11,295,000 4.51% 12/1/2027

Jun-09 To fund multiple Transportation Projects

12,970,000 11,245,000 4.03% 12/1/2028

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

13,410,000 12,425,000 4.50% 12/1/2035

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

10,515,000 10,220,000 3.93% 12/1/2035

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

15,945,000 15,855,000 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 9,515,000 2.36% 12/1/2025

Total Outstanding General Obligation Bonds 114,100,000$


Attachment CCity of VancouverOutstanding Debt - Revenue BondsThrough Second Quarter 2013

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

Jul-93 Build Eastside treatment plant, upgrade Westside treatment plant

38,000,000$ -$ 5.44% 6/1/2013

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

26,250,000 20,225,000 3.998% 6/1/2020

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

42,520,000 21,630,000 4.037% 6/1/2018

Jun-08 Refund the 1998 Water/Sewer Revenue Bonds

20,230,000 8,135,000 3.551% 12/1/2016

49,990,000$


City of VancouverInvestment Activity

Second Quarter of 2013(Dollars in thousands)

As of Percent of As of Percent of3/31/2013 Portfolio 6/30/2013 Portfolio

State Investment Pool 91,123 39.5% 97,950 41.0%Clark County Investment Pool 50,817 22.0% 49,632 21.0%U.S. Agencies 80,013 34.6% 55,194 23.3%Corporate Bonds (Pension Fund 510 0.2% 1,018 0.4%Municipal Bonds 6,828 3.0% 22,002 9.8%Zero Coupon 1680 0.7% 10844 4.5%

Total by Investment 230,971$ 100.0% 236,640$ 100.0%

As of Percent of As of Percent of12/31/2012 Portfolio Cumulative 6/30/2013 Portfolio Cumulative

Overnight 141,939$ 61.5% 61.5% 147,582$ 62.4% 62.4%One Month - 0.0% 61.5% - 0.0% 0.0%Two to Six Months - 0.0% 61.5% - 0.0% 0.0%Six Months to One Year 456 0.2% 61.7% - 0.0% 0.0%One to Five Years 88,576 38.3% 100.0% 89,057 37.6% 100.0%

Total by Length of M 230,971$ 100.0% 236,639$ 100.0%

14 Months 12 Months


City of VancouverInvestment Activity

Second Quarter 2013

Issuer Type of InvestmentTransaction

DateMaturity

Date Purchase or Deposit Redemption or

Withdrawal

Effective Interest

Rate

AprilClark County Treasurer* Local Government Investment Pool 13,122.23 417,147.18 0.03%Federal Farm Credit Bank U.S. Agency 4/12/2013 5,000,000.00 0.73%Federal Farm Credit Bank U.S. Agency 4/12/2013 5,000,000.00 0.73%Federal Home Loan Mortgage U.S. Agency 4/11/2013 5,000,000.00 1.45%State of Washington Municipal 4/17/2013 3,335,000.00 5.00%Wells Fargo Bank Corporate 4/25/2013 7/1/2015 500,000.00 1.50%Washington State Treasurer* Local Government Investment Pool 28,598,902.01 11,000,000.00 0.12%

32,447,024.24 26,417,147.18

MayClark County Treasurer* Local Government Investment Pool 15,236.00 316,731.89 0.03%Federal Farm Credit Bank U.S. Agency 5/16/2013 5/16/2017 5,000,000.00 0.69%Federal National Mtg Assoc. U.S. Agency 5/24/2013 5,000,000.00 0.70%Federal National Mtg Assoc. U.S. Agency 5/8/2013 5,000,000.00 0.85%Federal National Mtg Assoc. U.S. Agency 5/22/2013 5,000,000.00 0.60%Federal National Mtg Assoc. Federal Agency Zero Coupons 5/2/2013 11/15/2016 4,250,000.00 Washington State Treasurer* Local Government Investment Pool 30,045,630.86 26,000,000.00 0.13%

39,310,866.86 41,316,731.89

JuneClark County Treasurer* Local Government Investment Pool 9,694.49 487,391.08 0.03%Grant County Public Utility Municipal 6/13/2013 5,000,000.00 5.00%City of Seattle Municipal 6/4/2013 2,500,000.00 0.60%City of Seattle Municipal 6/4/2013 3,425,000.00 3.00%Federal Home Loan Mortgage U.S. Agency 6/13/2013 5,000,000.00 Federal National Mtg Assoc. U.S. Agency 6/7/2013 5,000,000.00 0.63%Federal National Mtg Assoc. U.S. Agency 6/12/2013 5,000,000.00 2.38%Washington State Treasurer* Local Government Investment Pool 13,182,663.09 28,000,000.00 0.17%

34,117,357.58 33,487,391.08 * Investments in the County and State Local Government Investment Pools can change daily, therefore no purchase dates are shownand the maturity dates are the last date for each reporting period.


City of Vancouver Investment Portfolio2nd Quarter 2013

6/30/2013Purchase Maturity Par Market Book Percent Cumulative Interest Effective

Issuer Date Date Value Value Value of Portfolio Percent Rate YieldClark County LGIP 49,632,900 49,632,900 49,632,900 21.0% 20.97% 0.22 0.22 Washington State LGIP 97,950,082 97,950,082 97,950,082 41.4% 62.37% 0.13 0.13 Federal Home Loan Mortgage Co. 6/13/2013 11/1/2014 5,000,000 4,945,700 4,978,734 2.1% 64.47% 0.32 0.32 Vancouver Wash LTGO 06/22/2011 12/01/2014 300,000 301,464 300,000 0.1% 64.60% 1.38 1.40 Clark County WA Public Utiliti 02/01/2012 01/01/2015 145,000 154,406 154,010 0.1% 64.66% 0.79 0.80 Grant County Public Utility 06/13/2013 01/01/2015 5,000,000 5,326,700 5,345,919 2.3% 66.92% 0.37 0.37 Seattle WA Muni Light & Power 11/15/2011 04/01/2015 155,000 167,801 166,249 0.1% 66.99% 1.01 1.02 Federal Home Loan Bank 04/09/2012 04/09/2015 5,000,000 5,019,050 5,000,000 2.1% 69.10% 0.69 0.70 Federal Home Loan Bank 04/09/2012 04/09/2015 5,000,000 5,019,050 5,000,000 2.1% 71.22% 0.69 0.70 Federal Home Loan Mortgage Co. 07/20/2012 06/01/2015 1,705,000 1,675,435 1,688,316 0.7% 71.93% 0.52 0.52 Wells Fargo Bank 04/25/2013 07/01/2015 500,000 505,695 508,931 0.2% 72.15% 0.59 0.60 State of Washington 4/17/2013 7/1/2015 3,335,000 3,629,614 3,644,374 1.5% 73.69% 0.34 0.34 General Electric Capital Corp 01/30/2013 07/02/2015 500,000 505,845 508,967 0.2% 73.90% 0.71 0.72 Federal Nat'l Mtg. Assoc. 06/12/2013 07/28/2015 5,000,000 5,197,600 5,201,719 2.2% 76.10% 0.41 0.42 Federal Home Loan Mortgage Co. 03/22/2013 11/24/2015 5,000,000 4,985,650 5,008,099 2.1% 78.21% 0.38 0.38 Vancouver Wash LTGO 06/22/2011 12/01/2015 25,000 25,254 25,000 0.0% 78.23% 2.22 2.25 Clark County WA Public Utiliti 03/08/2012 01/01/2016 330,000 362,099 360,375 0.2% 78.38% 1.21 1.23 City of Seattle 06/04/2013 01/01/2016 2,500,000 2,474,050 2,500,000 1.1% 79.43% 0.59 0.60 Federal Home Loan Bank 02/12/2013 02/12/2016 5,000,000 4,970,550 5,000,000 2.1% 81.55% 0.41 0.42 Chelan County Public Utility D 11/09/2011 07/01/2016 500,000 509,470 500,000 0.2% 81.76% 1.83 1.85 State of Washington 03/27/2013 07/01/2016 5,320,000 5,250,893 5,310,848 2.2% 84.00% 0.70 0.71 City of Seattle 06/04/2013 10/01/2016 3,425,000 3,653,105 3,694,828 1.6% 85.56% 0.54 0.55 Federal Home Loan Mortgage Co. 10/22/2012 11/01/2016 5,000,000 4,953,350 5,000,000 2.1% 87.68% 0.62 0.63 Federal Nat'l Mtg. Assoc. 05/02/2013 11/15/2016 4,250,000 4,070,268 4,176,969 1.8% 89.44% 0.52 0.52 Federal Nat'l Mtg. Assoc. 02/28/2012 11/28/2016 5,000,000 4,970,650 4,991,771 2.1% 91.55% 1.09 1.11 Federal Nat'l Mtg. Assoc. 02/06/2013 02/06/2017 5,000,000 4,939,750 5,000,000 2.1% 93.66% 0.74 0.75 Federal Farm Credit Bank 03/08/2013 02/22/2017 5,000,000 4,919,900 5,000,000 2.1% 95.78% 0.65 0.66 Federal Farm Credit Bank 05/16/2013 05/16/2017 5,000,000 4,895,100 4,992,344 2.1% 97.89% 0.72 0.73 Federal Nat'l Mtg. Assoc. 10/17/2012 07/17/2017 5,000,000 4,872,200 5,000,000 2.1% 100.00% 0.86 0.88

236,640,435


quarterly financial report q2 2013 - vancouver, washington · activity and increasing housing...

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