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Renton City Hall • 1055 South Grady Way • Renton, Washington 98057 • rentonwa.gov
CITY OF RENTON
2009
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For Year Ended December 31, 2009
Iwen Wang, Administrator
Gina Jarvis, CPA, Fiscal Services Director
Finance and Information Services
City of Renton
1055 South Grady Way
Renton, Washington 98057
(425) 430-6858
Website: www.rentonwa.gov
TABLE OF CONTENTS
DECEMBER 31, 2009
ITEM
PAGE
INTRODUCTORY SECTION
Letterof Transmittal.....................................................................................................................................1-1
2008 Comprehensive Annual Financial Report Award.................................................................................1-8
Corporate Organization Structure & Reporting Relations............................................................................1-9
FINANCIAL SECTION
Independent Auditor's Report.................................................................................................................... 2-1
Management Discussion and Analysis........................................................................................................3-1
Basic Financial Statements:
Government -wide Financial Statements:
Statementof Net Assets........................................................................................................................
4-1
Statementof Activities...........................................................................................................................
4-2
Fund Statements
Government Fund Financial Statements:
BalanceSheet..................................................................................................................................4-4
Reconciliation of Balance Sheet to the Statement of Net Assets....................................................4-6
Statement of Revenues, Expenditures and Changes in Fund Balances...........................................4-7
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Government Funds to the Statement of Activities........................................4-8
Proprietary Fund Financial Statements:
Statementof Net Assets..................................................................................................................
4-9
Statement of Revenues, Expenses, and Changes in Fund Balances..............................................4-11
Statementof Cash Flows...............................................................................................................4-12
Fiduciary Fund Statements:
Statement of Fiduciary Net Assets................................................................................................4-14
Statement of Changes in Fiduciary Net Assets..............................................................................4-15
Notes to Financial Statements:
Note 1: Significant Accounting Policies...........................................................................................4-16
Note 2: Compliance and Accountability..........................................................................................4-26
Note 3: Deposits and Investments..................................................................................................4-28
Note4: Property Taxes....................................................................................................................4-31
Note 5: Capital Assets and Depreciation.........................................................................................4-32
Note6: Pensions..............................................................................................................................4-37
Note 7: Other Post Employment Benefits.......................................................................................4-47
Note8: Contingencies.....................................................................................................................
4-50
Note9: Risk Management...............................................................................................................4-51
Note 10: Interfund Transactions.......................................................................................................4-54
Note11: Net Assets...........................................................................................................................4-56
Note 12: Prior Period Adjustments...................................................................................................4-57
Note13: Long Term Debt..................................................................................................................
4-58
Note 14: Deferred Charges in Proprietary Funds..............................................................................4-63
Note 15: Segment Information..........................................................................................................4-63
Note16: Joint Ventures.....................................................................................................................4-64
Note 17: Subsequent Events.............................................................................................................4-66
Required Supplemental Information Other than MD&A
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget to Actual
GeneralFund..........................................................................................................................................5-1
TABLE OF CONTENTS
DECEMBER 31, 2009
ITEM PAGE
Actuarial Valuation of Firefighters' Pension Fund.................................................................................5-2
LEOFF I Retiree Medical Benefits - Schedule of Funding Progress........................................................
... 5-3
Combining Statements
Net Assets by Component....................................................................................................
Non -Major Fund Descriptions................................................................................................................6-1
Table 2:
CombiningBalance Sheet......................................................................................................................
6-5
Combining Statement of Revenues, Expenditures and Changes in Fund Balances.............................6-11
Fund Balance of Government Funds....................................................................................
Schedule of Revenues, Expenditures and Changes in Fund Balances
Table 4:
Budgetto Actual..................................................................................................................................6-17
Combining Statement of Net Assets, Non -Major Enterprise Funds....................................................6-32
General Government Tax Revenue by Source....................................................................7-10
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets,
Revenue Capacity:
Non -Major Enterprise Funds.........................................................................................................
6-34
Statement of Cash Flows, Non -Major Enterprise Funds......................................................................6-35
7-11
Combining Statement of Net Assets, Internal Service Funds..............................................................6-37
Assessed Value Taxable Property.......................................................................................
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets,
Table 8:
InternalService Funds...................................................................................................................
6-39
Combining Statement of Cash Flows, Internal Service Funds..............................................................6-40
Property Tax Levies and Collections...................................................................................
Statement of Changes in Assets and Liabilities Agency Fund — Special Deposit.................................6-42
Table 10:
STATISTICAL SECTION
Statistical Section Description................................................................................................................7-1
Financial Trends:
Table 1:
Net Assets by Component....................................................................................................
7-2
Table 2:
Changes in Net Assets...........................................................................................................
7-4
Table 3:
Fund Balance of Government Funds....................................................................................
7-6
Table 4:
Changes in Fund Balances of Government Funds................................................................7-8
Table 5:
General Government Tax Revenue by Source....................................................................7-10
Revenue Capacity:
Table 6:
Principal Property Tax Payers.............................................................................................
7-11
Table 7:
Assessed Value Taxable Property.......................................................................................
7-12
Table 8:
Property Tax Rates Direct and Overlapping Governments................................................7-14
Table 9:
Property Tax Levies and Collections...................................................................................
7-16
Table 10:
Sales Tax Collections by Sector...........................................................................................
7-18
Debt Capacity:
Table 11:
Ratios of Outstanding Debt by Type...................................................................................
7-20
Table 12:
Legal Debt Margin Information..........................................................................................
7-22
Table 13:
Ratios of General Bonded Debt Outstanding.....................................................................7-24
Table 14:
Direct and Overlapping Governmental Activities Debt......................................................7-25
Table 15:
Pledged -Revenue Coverage for Water and Sewer and Golf Course Revenue Bonds ........7-26
Demographic and Economic Information:
Table 16:
Demographic and Economic Statistics................................................................................7-27
Table 17:
Principal Employers............................................................................................................
7-28
Operating Information:
Table 18:
Full Time Equivalent City Government Employees by Function.........................................7-30
Table 19:
Operating Indicators by Function.......................................................................................7-32
Table 20:
Capital Assets Statistics by Function...................................................................................
7-34
iv
City of
1
July 28, 2010
Honorable Denis Law, Mayor
Members of the Renton City Council
Residents of Renton
City of Renton, Washington
RE: THE 2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Dear Mayor Law, City Councilmembers, and Residents of Renton:
We are pleased to present the City's Comprehensive Annual Financial Report for the year
ended December 31, 2009. We publish this financial statement in conformity with generally
accepted accounting principles (GAAP). It has been audited in accordance with generally
accepted auditing standards by the Washington State Auditor's Office.
The report includes our own representations concerning the finances of the City of Renton.
Consequently, we assume full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these
representations, we have established a comprehensive internal control framework that is
designed both to protect the City of Renton's assets from loss, theft, or misuse and to maintain
sufficient reliable information for the preparation of the City's financial statements in
conformity with GAAP. Because the cost of internal controls should not outweigh the benefits,
the City's comprehensive framework of internal controls is designed to provide reasonable,
rather than absolute, assurance that the financial statements will be free from material
misstatement. As management, we attest that to the best of our knowledge and belief that this
financial report is complete and reliable in all material aspects.
These financial statements have been audited by the Washington State Auditor's Office. The
goal of this independent audit was to provide reasonable assurance that the City's financial
statements for the fiscal year ended December 31, 2009, are free of material misstatements.
The independent audit involved examining, on a test basis, evidence supporting the amounts
and disclosures in our financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial statement
presentation. Based upon the audit, the independent auditor concluded that there was a
2009 Comprehensive Annual Financial Report City of Renton, Washington
reasonable basis for issuing an unqualified opinion that the City of Renton's financial
statements for the fiscal year ended December 31, 2009, are fairly presented in conformity with
GAAP. The State Auditor's report is included as the first component of the financial section of
this report.
The independent audit of the City of Renton's financial statements is part of a broader,
federally mandated "Single Audit" designed to meet the special needs of federal grantor
agencies. The standards governing Single Audit engagements require the independent auditor
to report not only on the fair presentation of the financial statements, but also the City's
internal controls and compliance to legal requirements with special emphasis on internal
controls and legal requirements involving the administration of federal grant programs.
The City's Single Audit Report is issued separately and is available upon request or directly from
the Washington State Auditor. Another State mandate requires the Washington State Auditor's
Office to perform additional tests of compliance with State laws and regulations as required by
RCW 43.09.260. This statute requires the State Auditor to inquire as to whether the City
complied with the laws and the Constitution of the State of Washington, its own ordinances
and orders, and the requirements of the State Auditor's Office. The City's State compliance
report is also available upon request and from the Washington State Auditor. GAAP requires
that management provide a narrative introduction, overview, and analysis to accompany the
basic financial statements in the form of the Management's Discussion and Analysis (MD&A).
This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The City's MD&A can be found immediately following the independent
auditor's report.
THE CITY OF RENTON AND ITS SERVICES
The City of Renton was incorporated on September 6, 1901. Located at the south end of Lake
Washington, our city borders the City of Seattle to the north. We currently have a land area of
23.38 square miles. We have over 1,183 acres of parks that includes 30 active parks. As
presented by the Washington State Office of Financial Management, our 2009 population was
83,650.
The City of Renton has a strong mayor form of government with an appointed Chief
Administrative Officer. The Mayor is independently elected to a four-year term. The Mayor's
job is to manage and implement the policies established by the seven -member City Council.
The Council establishes policies, appropriates monies through the budget process and adopts
local laws through ordinances. Each Councilmember serves a four-year term and they are
elected on a staggered two-year cycle. Both the Council and the Mayor are elected on a non-
partisan basis.
The City is a general-purpose governmental entity and provides the full range of municipal
services allowed by statute or charter. These services include police, fire, emergency medical,
Introduction, 1-2
2009 Comprehensive Annual Financial Report City of Renton, Washington
street construction and maintenance, planning and zoning, libraries, parks and recreation,
municipal court, and general administrative services.
The City operates four utilities: water, sewer, surface water, and solid waste. These are
operated very similar to a private business where the revenues from rates and other direct
sources must pay for the operational, capital, and long-term debt costs. The City has its own
water rights and does not purchase water from outside sources. The City's sewage is treated by
King County, but the City is responsible for transferring and maintaining the system to King
County. The City bills Renton residents a monthly fee for the cost of sewer treatment
performed by King County.
The City also operates a golf course. All costs of the Maplewood Golf Course are paid from
green fees, driving range fees, revenue from the restaurant vendor, and other miscellaneous
revenue. The golf course has short-term operational costs, an active capital maintenance
program, and annual debt service payments for the construction of the clubhouse and the
driving range.
One operation the City has, which is somewhat unusual for cities our size, is its airport. The
Renton Municipal Airport is used by small private plane operators, a floatplane tourist
company, and Boeing initiates its maiden 737 flights from this airport. The operational costs of
the airport are paid from rental fees. Much of the major capital projects are paid by fees or
with Federal Aviation Administration grants.
The City of Renton complies with the Budgeting, Accounting, and Reporting System (BARS) as
delineated by the Office of the State Auditor as authorized under RCW 43.09.200 and
43.09.230. State law also mandates timely submission of annual financial reports to the State
Auditor for annual independent audits. The City of Renton's financial system incorporates
financial and administrative controls to ensure the safeguarding of assets and reliability of
financial reports. These controls are designed to provide reasonable assurance that
transactions are executed in accordance with management authorization and are recorded in
conformity with GAAP. They also provide accountability of and control over assets and
obligations, and sufficient reporting and review exist to provide adequate information for
analysis and comparability of data.
The City of Renton maintains budgetary controls to ensure compliance with legal provisions
embodied in the annual budget. All activities are appropriated through the annual budget
process and published in the City's Annual Budget document. The City Council must adopt an
ordinance to increase or decrease total appropriations in a Fund. The Mayor has the authority
to move appropriations within a Fund. A thorough discussion of the City's accounting policies
can be found under the Summary of Significant Accounting Policies in the Notes to the Financial
Statements.
Introduction, 1-3
2009 Comprehensive Annual Financial Report City of Renton, Washington
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is a perspective of past activities that
influence the City's financial condition. The following information is presented to place that
information in context with the general economy.
Economic Condition and Outlook
In Mayor Denis Law's 2010 State of the City's address he highlighted:
• "As you know, last year was disastrous for the nation's economy.
Unemployment reached record highs as did home foreclosures and business
bankruptcies. Knowing that we were facing a difficult year, our department
heads made significant cuts to our proposed budget. I froze most hiring even
though we had a large number of unfilled positions. And this was still not
enough."
• "Entering 2009 with a very conservative revenue forecast, it became obvious
early on that we were in for another year of major challenges, as actual receipts
continued to come in below our forecasts. Once again, my staff had to come
together to figure out what needed to be done in order to balance our budget
for the year."
• "For our 2010 budget, we embarked on an ambitious "priorities of government
process" to make hard choices and determine the most efficient and cost-
effective way to meet high levels of service. Led by our department heads, we
used a zero -based budget process that helped us identify all services and all
costs, and our employees prioritized the vital services that we needed to
maintain, if possible. This resulted in actual cost -reductions of 3.5% of our
general operating budget and the elimination of 12% of our workforce.
Unfortunately, this also meant laying off 35 of our full-time employees, and
about 80 seasonal and part-time staff."
• "The 2010 budget totals $212 million. Of that total, $98 million goes to the
General Fund, which pays for police, fire services, roads, water, parks and most
other city services and program, with the remainder dedicated to capital budgets
and other operating funds."
UPDATE FROM BUDGET DOCUMENT
General Government Revenue
The baseline revenue projection for 2010 is $95.5 million, or $5.3 million lower than the 2009
adopted budget.
The adopted 2010 Revenue would add $1.42 million in Photo Enforcement revenue to fund our
Patrol Services/Traffic Unit. Using these revenues to further our traffic enforcement efforts is a
good use of this revenue source, which is derived from the fines received from traffic violators.
This budget anticipates that property tax collections will be at 2009 levels—we will not take the
1% increase allowed by law. However, the July implicit price deflator projected a 1% decrease
Introduction, 1-4
2009 Comprehensive Annual Financial Report City of Renton, Washington
in property tax collections. Therefore, the City Council will need to declare a "special need" in
order to collect at the 2009 level. In addition to this adjustment, the City is also expecting
annexation property taxes from New Life/Aqua Barn Annexation and slightly higher than
anticipated new construction. Combined, the property tax estimate is $1 million higher than
the initial estimate.
With these changes, the 2010 adopted revenue total of $97.8 million is 3.8% below 2009
adopted level but is 2.3% higher than 2009 adjusted level.
General Government Expenditures
The 2010 baseline expenditure budget was projected at $101.6 million without any assumed
wage or benefit increases. When compared against the $95.5 million baseline revenue, this is a
projected gap of $6.3 million. To bridge this projected gap on a long term basis, the City took a
new approach in 2010 budget development.
Instead of identifying marginal budget reductions, each department built their entire budget
from the ground up, with three different funding levels. The Base Level is the resources needed
to continue current services as they are. The Alternative level provides options to continue the
service at a lower cost, and a minimal/mandated level which identifies the minimum level the
program can continue to be performed before it is eliminated entirely, or that minimal level the
program can operated and remain in compliance with State or Federal laws. The
Administration staff team and Administration then prioritized these services and determined
the adopted funding level for each program (the 4t" or Adopted level) based on each program's
relative importance to the community. This budget document presents the Baseline and the
Adopted levels information only. Detailed descriptions of program proposals at these two
levels are in a separate document available in the Council Office. Also on file with the City Clerk
is a complete set of all programs at all levels.
Using this approach, the Administration is proposing a general government budget of $97.8
million. This represents a net reduction of $3.8 million from the baseline level. When we
include the increase in benefit costs to the baseline budget, the actual 2010 expenditure
reduction is $4.9 million. The following section highlights the reductions and service impacts by
department.
More information about the department's programs, accomplishments, goals, and service
measures can be found in the Budget by Department Section of this budget.
Fund Balance
Because the 2009 adjusted budget tapped into the $2 million anti -recession reserve, the
budgeted beginning fund balance for general governmental funds is $8.3 million, which is under
the 2009 adopted budget by $2.8 million. The City also maintains a $5 million catastrophic
reserve in the Risk Management Fund and a well funded equipment replacement reserve.
These reserves and fund balances would provide a safety net over a turbulent and uncertain
period in our history.
Introduction, 1-5
2009 Comprehensive Annual Financial Report
OTHER INFORMATION
City of Renton, Washington
Cash Management
The City has adopted an Investment Policy that states that the primary objectives of investment
management, in priority order, are safety, liquidity, and return on investment. The Investment
Policy reflects provisions in state statute and authorizes investments in obligations with: the US
Government or its agencies; banker's acceptances; certificates of deposit issued by public
depositories in the State of Washington; the Washington State Local Government Investment
Pool; and any other investment authorized by law for taxing districts in the State of
Washington.
The City has a Fire Pension Fund that is managed by an Oversight Board with members
including Firefighters, the Mayor and one Councilmember. Their investment policies reflect the
long-term obligations of investing these funds, which are invested primarily in US Treasury
strips. The most recent independent actuarial study dated January 1, 2009 estimated a
(negative) net pension obligation of ($1,082,280). This number for January 1, 2010 is estimated
to be ($1,294,508) and is included as an asset in the City of Renton's Government -wide
Financial Statements.
Risk Management
The City belongs to the Washington Cities Insurance Authority (WCIA). The WCIA is a
consortium of Washington State cities that purchases excess coverage in large blocks, thus
leveraging the market and risk across a large base. It has a professional staff, but operates with
an Oversight Board comprised of City representatives. This Board meets monthly. In most
cases, the City of Renton has a variety of insurance deductibles that range from $5,000 to a
maximum of $350,000. The City maintains a self-insurance program for health and dental
coverage for City employees and dependents. The City purchases excess medical coverage
from for cases that exceed $350,000. The City also purchases life and disability insurance from
various healthcare insurance providers.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Achievement for Excellence in Financial Reporting to the City of Renton for its
comprehensive annual financial report for the fiscal year ended December 31, 2008. The City
has a long history of achieving this prestigious award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
Introduction, 1-6
2009 Comprehensive Annual Financial Report
City of Renton, Washington
The dedicated staff of the Finance Division work hard each day to ensure that the City's
financial records always displays information in conformance with legal parameters. All
members of the division are to be commended for their consistent dedication to excellence in
local government finance. Significant contributors are specifically identified in the
acknowledgements on page ii of this document. We are pleased with the comprehensive
content and quality of this financial report knowing that the citizens of Renton can rely on this
report as the definitive assessment of all City financial operations.
Sincerely,
Iwen Wang
Finance & Information Services Administrator
Gina L. Jarvis, CPA
Fiscal Services Director
Introduction, 1-7
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Renton
Washington
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2008
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
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President
Executive Director
CITY COUNCIL
Don Persson, President
Randy Corman, Marcie Palmer,
Terri Briere, King Parker, Greg Taylor,
Rich Zwicker
425-430-6500
COMMUNITY SERVICES
Terry Higashiyama, Administrator
425-430-6600
Facilities
Peter Renner, Director
Parks Planning & Natural
Resources
Leslie Betlach, Director
Recreation
Tim Williams, Director
Human Services
Karen Bergsvik, Manager
Library
Bette Anderson, Director
Renton History Museum
Elizabeth Stewart, Manager
Community Resources and
Events
Parks & Golf Course
Kelly Beymer, Director
POLICE
Kevin Milosevich, Chief
425-430-7503
Support Operations Bureau
Chuck Marsalisi, Deputy Chief
Special Operations
Investigations
Administrative
Services
Staff and Auxiliary
Services
Field Operations Bureau
Tim Troxel, Deputy Chief
Patrol Services
Patrol Operations
RENTON CITIZENS
MAYOR MUNICIPAL COURT JUDGE
Denis Law Terry Jurado
425-430-6500 425-430-6550
CHIEF ADMINISTRATIVE OFFICER
Jay Covington
425-430-6500
PUBLIC WORKS
Gregg Zimmerman, Administrator
425-430-7394
Maintenance Services
Michael Stenhouse, Director
Transportation Systems
Richard Perteet, Deputy PW
Administrator
Utility System
Lys Hornsby, Direcs
tor
FIRE AND EMERGENCY SERVICES
Mark Peterson, Chief/ Administrator
425-430-7501
Response Operations
Bill Flora, Deputy Fire Chief
Safety and Support Services
Erik Wallgren, Deputy Chief
Emergency
Management/Community Risk
Reduction
Deborah Needham, Director
COMMUNITY AND ECONOMIC
DEVELOPMENT
Alex Pietsch, Administrator
425-430-6580
Economic Development and
Neighborhoods
Suzanne Dale Estey, Director
Development Services
Neil Watts, Director
Planning
Chip Vincent, Director
HUMAN RESOURCES & RISK
MANAGEMENT
Nancy Carlson, Administrator
425-430-7650
Human Resources
Eileen Flott, Manager
Risk Management
Robin Robertson, Manager
Benefits
CITY ATTORNEY
Larry Warren, Administrator
425-255-8678
EXECUTIVE
Marty Wine, Assistant CAO
425-430-6500
Mayor's Office
City Clerk / Cable Manager
Bonnie Walton, City Clerk
Hearing Examiner
Fred Kaufman, Hearing
Examiner
Communications
Preeti Shricihar. Director
FINANCE AND INFORMATION
TECHNOLOGY
Iwen Wang, Administrator
425-430-6858
Finance
Gina Jarvis, Director
Information Technology
Mehdi Sadri, Director
2009 Comprehensive Annual Financial Report
This page intentionally left blank.
City of Renton, Washington
Introduction, 1-10
Washington State Auditor
Brian Sonntag
INDEPENDENT AUDITOR'S REPORT
July 28, 2010
Mayor and City Council
City of Renton
Renton, Washington
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund and the aggregate remaining fund information of the
City of Renton, King County, Washington, as of and for the year ended December 31, 2009,
which collectively comprise the City's basic financial statements as listed in the table of
contents. These financial statements are the responsibility of the City's management. Our
responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each
major fund and the aggregate remaining fund information of the City of Renton, Ding County,
Washington, as of December 31, 2009, and the respective changes in financial ,position and,
where applicable, cash flows thereof for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we will also issue our report dated July 28,
2010, on our consideration of the City's internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts and grant agreements
and other matters. That report will be issued under separate cover in the City's Single Audit
Report. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion
on the internal control over financial reporting or on compliance. That report is an integral part
Insurance. Building, Po Box 40021 •Olympia, Wishingtan 98504-0021 • (:360) 902-0370 • (€i66) 902-3940 • TDD Relay (800) 8:33-6388
0 FAX (360) 753-0646 • http,//www.sao,wa.gnv
of an audit performed in accordance with Government Auditing Standards and should be
considered in assessing the results of our audit-
The
udit
The management's discussion and analysis on pages 3-1 through 3-14, pension trust fund on
page 5-2, budgetary comparison on page 5-1, and information on postemployment 'benefits
other than pensions on page 5-3 are not a required part of the basic financial statements but are
supplementary information required by the Governmental Accounting Standards Board. We
have applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation of the required supplementary
information. However, we did not audit the information and express no opinion on it.
Our audit was performed for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The accompanying information listed
as Combining Statements on pages 6-1 through 6-42 is presented for purposes of additional
analysis and is not a required part of the basic financial statements. This information has been
subjected to auditing procedures applied in the audit of the basic financial statements and, in
our opinion, is fairly stated, in all material respects, in relation to the basic financial statements
taken as a whole_
The information identified in the table of contents as the Introductory and Statistical Sections is
presented for purposes of additional analysis and is not a required part of the basic financial
statements of the City. Such information has not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we express no opinion on
it.
Sincerely,
BRIAN SONNTAG, GGFM
STATE AUDITOR
2009 Comprehensive Annual Financial Report
City of Renton, Washington
MANAGEMENT'S DISCUSSION AND ANALYSIS
The City of Renton's discussion and analysis provides a narrative overview of the City's financial
activities for the fiscal year ended December 31, 2009. The intent of the discussion and analysis is
to review the City's financial performance as a whole.
This Management's Discussion and Analysis (MD&A) combined with the Transmittal Letter, the
Financial Statements, and the Notes to the Financial Statements represent the complete 2009
financial activities for the City of Renton. These are all intended to help the reader understand the
City's significant financial issues. This MD&A provides an overview of the City's financial records.
The data in this financial report also identifies any material deviations from the financial plan and
the adopted annual budget. Finally, the intent of the MD&A and other financial information is to
isolate and identify individual fund issues or concerns.
FINANCIAL INFORMATION
Since 2003, the City of Renton prepared its financial records in accordance to what is known as
Government Accounting Standards Board Statement 34 (GASB 34) with a phase in of the
infrastructure component in 2004.
The City's Government -wide Financial Statements were prepared on the full accrual basis of
accounting in conformity with Generally Accepted Accounting Principles (GAAP). The City's Fund
Financial Statements for its major and non -major governmental funds were prepared on the
modified accrual basis of accounting in conformity with GAAP. The City's major and non -major
enterprise funds, internal service funds, and pension funds were accounted for on the accrual
basis.
The City of Renton, along with all cities, counties, and other governmental entities in Washington,
must comply with the Budgeting, Accounting, and Reporting System (BARS) as defined by the
Washington State Office of the Auditor (SAO). SAO audits the financial records of all cities and
other governmental units within the State. The City of Renton's financial system integrates
financial and administrative controls that ensure the safeguarding of assets and the reliability of
financial reports. These controls are designed to provide:
1. reasonable assurance that transactions are executed in accordance to management
understanding and approval;
2. reasonable assurance that transactions are executed in accordance to GAAP principles;
3. accountability for control of assets and obligations; and
4. assurance that sufficient reporting and review exists to provide adequate information for
analysis and comparability of data.
Internal control is a high priority for the City. SAO reviews the City's internal controls, and the City
receives and takes action on all the recommendations made.
Management's Discussion and Analysis, 3-1
2009 Comprehensive Annual Financial Report
City of Renton, Washington
The City maintains strong budgetary controls in order to ensure compliance with legal provisions
embodied in the annual appropriated budget as approved by the City Council. The City Council
must authorize any budget increase or decrease to any fund.
Financial Highlights
• The City's total assets as of December 31, 2009, exceeded liabilities by $665.3 million.
• As of December 31, 2009, the City's Governmental Activities reported net assets of $434.4
million. Of this total, $35.0 million is defined as unrestricted and can be used for needs the
Mayor and Council deem necessary. These monies are intended to provide a cushion
against significant economic downturns in revenues and to maintain sufficient working
capital and cash flow to meet daily financial needs.
• Investment in capital assets (net of related debt) comprises $378.4 million of the $434.4
million in Governmental Activities net assets.
• The business type activities have total net assets of $230.9 million. 90.4% of this total,
$208.7 million, represents the City's investments in capital assets (net of related debt). An
unrestricted balance of $18.2 million remains and is used to meet day to day cash flow
requirements and to ensure we can meet all obligations of the utilities and other funds if
the revenues do not meet expectations.
• The City's total outstanding long-term debt as of December 31, 2009, was $134.8 million.
Of this amount, $46.9 million are revenue bonds and PWTF loans dedicated to the
waterworks projects. The Golf Course has $2.2 million outstanding in debt service.
Employee leave balances and other post -employment benefits total $7.7 million. The
balance of $78.0 million of City debt is dedicated for general governmental purposes,
including the purchase of City Hall, the construction of the downtown parking garage,
replacement of a fire station, purchase of a fire station, the construction of a regional
communications center and construction of a regional jail facility.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis provides an introduction and overview to the City of Renton's basic
financial statements. The basic financial statements are comprised of three components:
1. Government -wide Financial Statements;
2. Fund Financial Statements; and
3. Notes to the Financial Statements.
The graphic representation below illustrates the required components of the City's annual
financial report and how the required parts are arranged and relate to one another. This
illustration helps explain the City's financial presentation in 2009. This graphic representation
should be used in conjunction with the following explanations to help guide the reader in
understanding the financial condition of the City of Renton.
Management's Discussion and Analysis, 3-2
2009 Comprehensive Annual Financial Report
Figure 1
REQUIRED COMPONENTS OF THE
ANNUAL FINANCIAL REPORT
Management Discussion
and Analysis
{required supplementary information)
IC (new)
c e Government -wide Financial Statements (new)
r Fund financial Statements (refocused)
2 Notes to tlx: Financial Statements
(expanded/restructured)
� � o Required Supplementary
v ' Information
o Cr_ a (other than MD&A)
2 -
City of Renton, Washington
In addition to the required components shown in Figure 1, the City's annual report also includes
other voluntary supplementary information. The most significant section is the Combining
Statements. These provide Balance Sheets, Statement of Revenues, Expenditures, and Changes in
Fund Balances with Budget to Actual comparisons, Statement of Net Assets, and Cash Flows for all
Non -Major Funds.
The next section of information, the Statistical Section, provides a ten-year view of the City's
Revenue, Expenditures, Debt Obligations, and Debt Capacity; the City's largest taxpayers, and
those entities with the largest employment within the City of Renton. This section provides a long-
term perspective on the City's economy.
BASIC FINANCIAL STATEMENTS
Government -wide Financial Statements provide readers with a broad overview of the City of
Renton's finances in a manner similar to a private sector business. They provide both short-term
and long-term information about the City's overall financial status. The government -wide
statements distinguish between functions of the City that are principally supported by taxes and
intergovernmental revenues (referred to as "governmental activities") from functions that are
intended to recover all or a significant portion of their costs through user fees and charges
(referred to as "business -type activities.") The governmental activities of the City include a full
range of local government services provided to the public such as police and fire protection; road
maintenance and construction; community planning and economic development; libraries, parks,
and recreational opportunities; and other community services. The business -type activities of the
City include waterworks (water, sewer, and surface water), solid waste management and services,
golf course, and airport.
Management's Discussion and Analysis, 3-3
2009 Comprehensive Annual Financial Report City of Renton, Washington
The Statement of Net Assets presents information on all of the City's assets and liabilities with the
difference between the two reported as net assets. This statement combines and consolidates
governmental funds' current financial resources (short term available resources) with capital
assets and long-term obligations, which is primarily debt. The Statement of Net Assets serves a
purpose similar to that of the Balance Sheet of a private -sector business. Over time, increases or
decreases in net assets may serve as one indicator of whether the financial position of the City is
improving or deteriorating. Other indicators to consider when evaluating the financial position of
the City includes changes to the property tax base, general economic conditions as demonstrated
through business licenses fees or sales tax revenue, and the condition of the City's infrastructure
(roads, drainage systems, bridges, and water infrastructure).
The Statement of Activities focuses upon both the gross and net cost of various activities that are
provided by the government's general tax and other revenues. This is intended to summarize and
simplify the user's analysis of cost to various governmental services and/or subsidy to various
business -type activities. By separating program revenue from general revenue, users of the
financial statements can identify the extent to which each program relies on taxes for funding.
The Governmental Activities reflect the City's basic functions: General Government, Judicial,
Security of Person and Property, Physical Environment, Mental and Physical Health, and Culture
and Recreation. Property, sales, and utility taxes finance the majority of these functions.
All changes in net assets are reported using the accrual basis of accounting, which is similar to the
accounting used in the private sector. The accrual basis of accounting requires that revenues are
reported when earned and expenses are reported when incurred, no matter when the revenue
will actually be received or the obligation will be paid. For example, property taxes are shown as a
receivable and revenue even though some amount of these taxes will not be available to the City
for several years. Unpaid vendor obligations are illustrated as an accounts payable obligation as of
December 31.
Fund Financial Statements
The City uses funds to ensure and demonstrate fiscal integrity and compliance with finance related
legal requirements with a focus on Major Funds. A fund is a group of related accounts that is used
to maintain control over resources that have been segregated for specific activities and objectives.
There are three types of funds: governmental, proprietary, and fiduciary.
A Major Fund has three elements as defined by GASB 34:
• Total assets, liabilities, revenues, or expenditures of that individual governmental or
enterprise funds are at least ten percent (10%) of the corresponding total (assets, liabilities,
etc.) for all funds of that category or type (i.e., governmental, proprietary, or fiduciary); and
• Total assets, liabilities, revenues, or expenditures/expenses of the individual government
fund or enterprise funds are at least five percent (5%) of the corresponding total for all
governmental and enterprise funds combined; or
Management's Discussion and Analysis, 3-4
2009 Comprehensive Annual Financial Report
City of Renton, Washington
• Any other governmental or enterprise fund that the government's officials believe is
particularly important.
Governmental Funds present most of a government's tax -supported activities. The Proprietary
Funds describe and financially manage the government's business -type activities where all or part
of the activities' costs are supported by fees and charges that are paid directly by those who
benefit from the activities. Fiduciary Funds control resources held by the government as a trustee
or agent for parties outside of the government. The resources of Fiduciary Funds cannot be used
to support the government's own programs.
Governmental Funds
The Governmental Fund Balance Sheet and Governmental Fund Statement of Revenues,
Expenditures, and Changes in Fund Balances present separate columns of financial data for the
General Fund, Municipal Facilities CIP Fund and Capital Improvement Fund. These comprise the
City's major governmental funds. Data from the remaining governmental funds are combined and
presented in a single, aggregated column in the fund statements. Individual fund data for each of
the non -major governmental funds is provided in the form of combining statements.
Governmental Funds are used to account for essentially the same functions reported as
governmental activities in the Government -wide Financial Statements. The focus of Governmental
Fund Financial Statements is on near-term inflows and outflows of available financial resources
and on balances of resources available at the end of the fiscal year. Such information is useful in
evaluating whether there are more or less financial resources that can be spent in the near future
to finance City services.
Because the focus of governmental Fund Financial Statements is a narrower view than that of the
Government -wide Financial Statements, it is useful to compare information presented for
governmental funds with similar information presented for governmental activities in the
Government -wide Financial Statements. This gives the reader a better understanding of the long-
term impact of the government's near-term financing decisions. The Governmental Fund Balance
Sheet and the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund
Balances provide reconciliation to the governmental activities column in the government -wide
statements to facilitate this comparison.
The City maintains budgetary controls over its governmental funds. Budgetary controls ensure
compliance with legal provisions embodied in the annual appropriated budget. Governmental
fund budgets are established in accordance with state law and are adopted on a fund level.
General fund budget variances are specifically addressed later in this discussion and analysis.
Proprietary Funds
These types of funds consist of two types of funds: Enterprise and Internal Service. They have
always been operated as private business activity. Enterprise Funds are used to report the same
functions as business -type activities in the Government -wide Financial Statements. Internal
Service Funds are used to report activities that provide supplies and services to various City
Management's Discussion and Analysis, 3-5
2009 Comprehensive Annual Financial Report City of Renton, Washington
departments and to accumulate and allocate the associated costs of providing these services to
the various functions. The revenues and expenses of Internal Service Funds that are duplicated in
other funds are eliminated in the government -wide statements. Because the remaining balances
primarily benefit governmental, rather than business -type activities, they have been included
within Governmental Activities in the Government -wide Statements.
The City of Renton has two major proprietary funds: Waterworks Utility (water, wastewater, and
stormwater) and Solid Waste. The Proprietary Fund Balance Sheet and the Proprietary Fund
Statement of Revenues, Expenses, and Changes in Fund Equity present separate columns of
financial data for the Waterworks Utility and Solid Waste. Data from the remaining Enterprise
Funds are combined and presented in a single, aggregated column in the fund statements.
Governmental Activities Internal Service Funds are reported separately in this section.
Proprietary Fund statements provide the same type of information as the Government -wide
Financial Statements, only in more detail, since both apply the accrual basis of accounting. In
comparing the total assets and total liabilities between the two statements, only slight differences
will be noticed. One notable difference is that the "due from other funds" (asset) and the "due to
other funds" (liability) in the proprietary fund statements are combined in a single line called
"internal balances" in the asset section of the Government -wide Statement of Net Assets.
Fiduciary Funds
Fiduciary Funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reported in the Government -wide Financial Statements
because the resources of those funds are not available to support the City's own operations. All of
the City's fiduciary activities are reported in a separate Statement of Fiduciary Net Assets and a
Statement of Changes in Fiduciary Net Assets.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data
provided, and are an integral part of the Government -wide and Fund Financial Statements.
Combining statements for non -major Governmental and Enterprise Funds, as well as Internal
Service Funds, are presented immediately following the required supplementary information.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Statement of Net Assets
Changes in Net Assets may serve as a useful indicator of a government's financial position. The
overall financial position has improved for the City of Renton over the prior year. Changes in Net
Assets from 2008 to 2009 shows an increase in total net assets of $20.8 million.
Management's Discussion and Analysis, 3-6
2009 Comprehensive Annual Financial Report
City of Renton, Washington
Table 1 is a condensed version of the Government -wide Statement of Net Assets.
rrent and other assets
pital assets
TOTAL ASSETS
Long-term liabilities
Other liabilities
TOTAL LIABILITIES
NET ASSETS:
Invested in capital assets, net of related debt
Restricted
Unrestricted
TOTAL NET ASSETS
TABLE 1
CONDENSED STATEMENT OF NET ASSETS
Governmental Activities Business -type Activities
2009 2008 2009 2008 2009
Total
$ 108,157,536 $ 83,713,100 $ 24,521,489 $ 25,229,239 $ 132,679,025
424,156,417 397,266,775 257,787,336 253,602,300 681,943,753
532,313,953 480,979,875 282,308,825 278,831,539 814,622,778
2008
$ 108,942,339
759,811,414
85,005,048 48,275,566 49,784,751 53,152,711 134,789,799 101,428,277
12, 951,816 12,051, 530 1,602, 243 1,821, 099 14, 554,059 13, 872,629
97,956,864 60,327,096 51,386,994 54,973,810 149,343,858 115,300,906
378,440,636
353,197,782
208,682,683
202,255,997
587,123,319
555,453,779
20,882,824
33,294,987
4,029,537
4,171,525
24,912,361
37,466,512
35,033,629
34,160,010
18,209,611
17,430,207
53,243,240
51,590,217
$ 434,357,089
$ 420,652,779
$ 230,921,831
$ 223,857,729
$ 665,278,920
$ 644,510,508
The majority of the City's net assets (88%) are investments in capital assets (e.g., streets, drainage,
construction in progress, buildings, equipment, water and sewer pipes) less any related
outstanding debt used to acquire these assets. The City's capital assets are used to provide
services to citizens. It should be noted that although the investment in capital assets is reported
net of related debt, resources needed to repay this debt must be provided from other sources
since the capital assets themselves cannot be used to liquidate these liabilities.
Investments in capital assets net of related debt increased from 2008 to 2009 by $31.7 million.
Investment in capital assets increased by $25.3 million in the Governmental Funds and $6.4 million
in the Business -type activities primarily due to capital activity.
Restricted assets, representing resources that are subject to external restrictions on how they may
be used, equate to 3.7% of total net assets, down from 5.8% in 2008. The remaining balance
(unrestricted net assets) of $53.2 million may be used to meet the City's ongoing obligations.
As of December 31, 2009, the City reports positive balances in all three categories of net assets,
for the government as a whole, as well as for separate governmental and business -type activities.
Statement of Change in Net Assets
The City's total net assets (before prior period adjustments) increased in 2009 by $19.6 million.
Governmental activities generated 68% of this total or $13.3 million, while business -type activities
generated $6.3 million of this total.
Management's Discussion and Analysis, 3-7
2009 Comprehensive Annual Financial Report
Table 2 is a condensed version of the Statement of Activities for the City.
TABLE 2
CONDENSED STATEMENT OF ACTIVITIES
City of Renton, Washington
Expenses:
Governmental Activities
Business -type Activities
Total
2009
2008
2009
2008
2009
2008
Revenues:
12,010,422
Judicial
2,134, 283
1,761,665
Program revenues:
1,761,665
Security of persons & property
44,361,089
46,289,454
Charges for services
$ 17,157,502
$ 17,592,481
$ 50,901,497
$ 44,651,684
$ 68,058,999 $
62,244,165
Operating grants and contributions
11,029,657
9,570,931
46,267
264,784
11,075,924
9,835,715
Capital grants and contributions
16,091,934
18,109,124
7,556,701
6,888,975
23,648,635
24,998,099
General revenues:
6,823,426
Mental and physical health
328,333
325,066
Property taxes
32,300,319
29,381,036
-
-
32,300,319
29,381,036
Sales and use taxes
22,065,316
23,190,076
2,848,081
2,663,436
22,065,316
23,190,076
Othertaxes
19,801,827
19,314,593
-
-
19,801,827
19,314,593
Other general revenues
1,291,483
4,523,393
1,604,646
1,205,835
2,896,129
5,729,228
Total revenues
119,738,038
121,681,634
60,109,111
53,011,278
179,847,149
174,692,912
Expenses:
General government
18,808,404
12,010,422
18,808,404
12,010,422
Judicial
2,134, 283
1,761,665
2,134, 283
1,761,665
Security of persons & property
44,361,089
46,289,454
44,361,089
46,289,454
Physical environment
2,440,801
3,333,471
2,440,801
3,333,471
Transportation
11,765,835
13,675,581
11,765,835
13,675,581
Economic environment
6,669,911
6,823,426
6,669,911
6,823,426
Mental and physical health
328,333
325,066
328,333
325,066
Culture and recreation
16,992,266
17,025,800
16,992,266
17,025,800
Interest on long-term debt
2,848,081
2,663,436
-
-
2,848,081
2,663,436
Waterworks utility
-
-
35,617,861
32,738,366
35,617,861
32,738,366
Airport
1,865,481
1,733,894
1,865,481
1,733,894
Solid waste utility
14,143,956
11,518,047
14,143,956
11,518,047
Golf course
-
-
2,303,192
2,334,838
2,303,192
2,334,838
Total expenses
106,349,003
103,908,321
53,930,490
48,325,145
160,279,493
152,233,466
Increase in net assets before transfers
13,389,035
17,773,313
6,178,621
4,686,133
19,567,656
22,459,446
Transfers
(100,000)
110,000
100,000
(110,000)
-
Increase in net assets
13,289,035
17,883,313
6,278,621
4,576,133
19,567,656
22,459,446
Net assets - beginning
420,652,779
297,439,169
223,857,729
210,078,055
644,510,508
507,517,224
Prior period adjustments
415,275
105,330,297
785,481
9,203,541
1,200,756
114,533,838
Net assets - ending
$ 434,357,089
$ 420,652,779
$ 230,921,831
$ 223,857,729
$ 665,278,920
$ 644,510,508
Sixty-six percent (66%) of the City's total activities are for governmental activities such as providing
police, fire, parks, libraries, recreation, building safety, and planning services. The remaining
activities relate to business -type services provided by the City. The largest business -type activities
include water, sewer, surface water and solid waste activities.
Governmental Activities Analysis
Governmental activities cost a total of $106.3 million in 2009, up $2.4 million from 2008. Of this
amount, $44.3 million was paid for either by those who directly benefited from the programs or by
other governments and organizations that subsidized certain programs with grants
Management's Discussion and Analysis, 3-8
2009 Comprehensive Annual Financial Report
City of Renton, Washington
and contributions. The net expense (total expenses less program revenues) of $62.1 million was
the cost of governmental services City taxpayers primarily paid through various taxes.
Chart 1 portrays the cost of each of the City's governmental programs along with each program's
generated revenues (fees and intergovernmental revenues specifically related to that program).
$50,000,000
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
Chart 1
Expenses and Program Revenues-GovernmentalActivities
General Government Judicial Security o£Persons&Physical Environment Transportation Economic Mental&Physical Culture and
Prop Environment Health Recreation
Program
0 Expenses ■ Program Revenues
Chart 2 depicts the sources of revenues that fund governmental activities. Approximately sixty-two
percent (62%) is from various taxes. Charges for services, grants, and interest earnings generate
thirty-eight percent (38%) of total revenue for general governmental activities.
Chart 2
Revenues by Source- Governmental Activities
OtherGeneral Revenues
1%
Charges forSe ices
14%
OtherTaxes
17% Operating Grants and
Contributions
9%
Capital Grants and
Contributions
14%
Property Taxes
27%
Management's Discussion and Analysis, 3-9
2009 Comprehensive Annual Financial Report City of Renton, Washington
Business -Type Activities Analysis
Charts 3 and 4 present the same information on business -type activities as illustrated for
governmental activities. Chart 3 shows the expense of each of the City's business -type programs
along with each program's generated revenues (fees and intergovernmental revenues specifically
related to that program.)
Chart 3
Expenses and Program Revenues- Business -Type Activities
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
Waterworks Utility Airport Solid Waste Utility Golf Course
Program
❑ Expenses ■ Program Revenues
The City's largest business -type activity, the Waterworks Utility had a positive net change of $1.1
million at the end of 2009 compared to $5.1 million in 2008. The City generated $36.7 million in
various fees for services and other sources from waterworks activities above the $35.6 million in
expenses.
The Airport's total expenses were $1.9 million. Grant revenues for 2009 were $4.1 million with
total revenues of $5.4 million.
The Solid Waste Utility's revenues were $14.2 million generated from fees for services and
$26,042 in grants and contributions. The total expenses were $14.1 million.
The Golf Course generated a total of $2.1 million in green fees, driving range charges, and other
user fees. The total expenses for the Golf Course were $2.3 million. The Golf Course had a loss of
$168,798 for the year.
Management's Discussion and Analysis, 3-10
2009 Comprehensive Annual Financial Report
Char[ 4
Revenues by Source - Business -Type Activities
Other General Revenues
3%
Capital Grants and
Contributions
12%
Charges for Services
85%
City of Renton, Washington
Business -type activities are supported primarily from charges for services. In the City of Renton,
$50.9 million was generated from charges for services in the business -type activities. These
comprise ninety-four percent (94%) of the total financial support for these activities. Grant
revenues increased $0.4 million from 2008 to 2009.
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
Governmental Funds Analysis
The focus of the City's governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City's
financing requirements. In particular, unreserved fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the fiscal year.
As of the end of the fiscal year, the City's governmental funds reported combined ending fund
balances of $34.4 million, a decrease of $13.4 million in comparison to last year. Approximately
ten percent (10%) constitutes unreserved, undesignated fund balance, which is available for
spending at the government's discretion. The remainder of the fund balance is reserved or
designated to indicate that it is not available for new spending because it has already been
committed for operating or capital reserves. The decrease resulted from higher capital
expenditures over the previous year and shortfalls in revenues over the previous year due to the
continued slowdown of the economy. This is further discussed under the General Fund Budgetary
Highlights in this document.
The General Fund is the chief operating fund of the City. At the end of the current year,
unreserved, undesignated fund balance of the general fund was $3.3 million, while total fund
balance ended at $13.5 million. The fund balance total stayed virtually the same during the fiscal
year. Excess of expenditures over revenues, excluding internal transfers was $1.1 million in 2009.
Management's Discussion and Analysis, 3-11
2009 Comprehensive Annual Financial Report City of Renton, Washington
Proprietary Funds Analysis
The fund financial statements for the proprietary funds are presented in more detail, but
essentially provide the same type of information found in the business -type activities in the
government -wide financial statements.
Net assets in the Waterworks Utility Fund and the Solid Waste Fund were $207.2 million and $1.5
million respectively. This represents an increase in Waterworks Utility Fund of $3.5 million and an
increase in the Solid Waste Fund of $121,928 in net assets. Of the total net assets increase in the
Waterworks Utility Fund, $785,481 was a prior period adjustment and is discussed further in Note
12 of the financial statements. Other factors concerning the finances of these two funds have
already been addressed in the discussion of business -type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year there was an $807,998 decrease in appropriations between the original and final
amended budget. This decrease was mainly due to reductions as a result of the economic
downturn. The City took aggressive action to reduce the level of spending in the General Fund to
compensate for expected revenue shortfalls. In addition, the General Fund did not spend
$3,366,776 of the legally appropriated expenditures. With these reductions, the City only had to
use $30,370 of its prior years fund balance.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City of Renton's investment in capital assets, including construction in progress, for its
governmental and business -type activities as of December 31, 2009, amounts to $682.1 million as
presented on the following table.
The increase of $31.2 million in 2009 is made up of large capital projects such as Duvall Ave NE,
Rainier Ave, and Airport Runway 15/33 and the acquisition of a fire station and a parking garage.
More detail about the City's Capital Assets can be found in Note 5 to the financial statements.
Management's Discussion and Analysis, 3-12
TABLE 3
CAPITAL
ASSETS
(Net of Depreciation)
Governmental
Activities
Business -Type
Activities
Total
2009
2008
2009
2008
2009
2008
Land and Land Improvements
$ 177,624,727
$ 175,559,921
$ 6,976,321
$ 6,976,321
$ 184,601,048
$ 182,536,242
Buildings and Structures
67,647,963
48,596,215
12,091,442
12,130,440
79,739,405
60,726,655
Other Improvements
125,230,955
127,068,177
236,264,478
223,715,208
361,495,433
350,783,385
Machinery and Equipment
13,879,865
16,129,966
695,450
765,590
14,575,315
16,895,556
Construction in Progress
39,772,907
29,912,496
1,759,645
10,014,741
41,532,552
39,927,237
Total
$ 424,156,417
$ 397,266,775
$ 257,787,336
$ 253,602,300
$ 681,943,753
$ 650,869,075
The increase of $31.2 million in 2009 is made up of large capital projects such as Duvall Ave NE,
Rainier Ave, and Airport Runway 15/33 and the acquisition of a fire station and a parking garage.
More detail about the City's Capital Assets can be found in Note 5 to the financial statements.
Management's Discussion and Analysis, 3-12
2009 Comprehensive Annual Financial Report City of Renton, Washington
Debt Administration
As shown in Table 4, the City's total outstanding debt at December 31, 2009, was $126.8 million.
This was a net increase (new issues less principal payments and refundings) of $31.9 million.
General Obligation Bonds
Revenue Bonds
Other Long -Term Debt
Total
TABLE 4
LONG-TERM DEBT
Governmental Activities
2009 2008 _
$ 38,480,000 $ 40,969,414 $
Business -Type Activities
2009 2008 2009
- - 41,110,000
38,973,547 1,428,000 8,284,983
$ 77,453,547 $ 42,397,414 $ 49,394,983
Total
$ - $ 38,480,000
43,310,000 41,110,000
9,211,268 47,258,530
$ 52,521,268 $ 126,848,530
2008
$ 40,969,414
43,310,000
9
The King County Fire District #40 Loan was issued March 1, 2009 in the amount of $ 6,798,085.
The interest rate is 3.75%. This loan was issued for the purpose of acquiring the District's Fire
Station #13 as a result of the City's Benson Hill annexation that occurred in 2008.
The South Correctional Entity (SCORE) Bonds (A and B) were issued November 4, 2009 in the
amount of $8,205,000 and $78,030,000, respectively. The interest rates are 4%-5% for Series A
and 3%-6.62% for Series B. The City of Renton is obligated for $2,953,800 and $28,090,800,
respectively, which equates to 36%. These bonds were issued for the purpose of financing the
acquisition, construction, equipping and improvement of a new regional jail facility known as the
South Correctional Entity (SCORE).
The South Correctional Entity (SCORE) Bonds underlying ratings for Moody's and Standard &
Poor's are Al and AA, respectively. More detailed information about the City's long-term debt
can be found in Note 13 to the financial statements.
FUTURE YEAR'S BUDGETARY IMPACTS
The City's 2010 budget is the result of many measures taken to adjust for the economic recession
of a scale not seen since the Great Depression. The local economy started faltering at the
beginning of the second quarter of 2008. Since that time, the City has generated millions of
dollars in expenditure savings by suspending services and non-essential spending which included
reductions in the City's workforce. The 2010 budget is 3.5% lower than the previous year's
adopted budget and reduces the City's workforce by 12%. However, the City continues to benefit
from progressive economic development activities even during this economic slowdown.
• The Landing is a master planning development area on land previously owned by Boeing.
The development is adding more than 900 residential units and 600,000 square feet of
retail, including a major entertainment district to the city's core.
• The Farmers Market enjoys record attendance — over 4,000 people every week and 60
registered vendors.
• The Seahawks Training Camp brought 3,000 fans daily and a total of 15,000 people to
Renton during the summer.
Management's Discussion and Analysis, 3-13
2009 Comprehensive Annual Financial Report
City of Renton, Washington
• Key employers such as Harley Davidson and Uwajimaya brought jobs to the City.
• Valley Medical Center completed construction of its emergency service tower — the
culmination of a $200 million expansion with state-of-the-art emergency and trauma care,
and disaster recovery services.
• Upcoming projects such as the redevelopment of the Quendall Terminals on Lake
Washington and construction of the Hawks Landing Hotel in Kennydale are examples of
how development in the City continues to move forward even during this economic
slowdown.
For more information regarding future year's budgetary impacts, please refer to the Transmittal
Letter within this document under: Factors Affecting Financial Condition - Economic Condition.
REQUESTS FOR FINANCIAL INFORMATION
This financial report is designed to provide our citizens, creditors, investors, and others interested
in the City's finances with a general overview of the City's finances and to show the City's
accountability for financial resources it receives. If you have any questions about this report or
need additional information, please contact Iwen Wang, Finance and Information Technology
Administrator, 1055 South Grady Way, Renton, WA 98057 or visit our web site at
www.rentonwa.gov.
Management's Discussion and Analysis, 3-14
2009 Comprehensive Annual Financial Report
STATEMENT OF NET ASSETS
December 31, 2009
City of Renton, Washington
LIABILITIES
Accounts payable and
other liabilities
9,823,705
PRIMARY GOVERNMENT
11,119,644
Interest payable
GOVERNMENTAL
BUSINESS -TYPE
331,437
Unearned revenue
ACTIVITIES
ACTIVITIES
TOTAL
ASSETS
18,408,802
-
18,408,802
Cash and cash equivalents
$ 29,166,282
$ 9,025,120 $
38,191,402
Cash with fiscal agent
15,229
-
15,229
Investments at fair value
21,911,503
7,127,863
29,039,366
Receivables (net of allowance
for uncollectibles)
16,437,486
5,629,023
22,066,509
Internal balances
(1,395)
1,395
-
Inventories
-
534,930
534,930
Prepayments
274,844
-
274,844
Other non-current assets
40,353,587
1,761,800
42,115,387
Restricted assets:
Cash and cash equivalents
-
441,358
441,358
Land
177,624,727
6,976,321
184,601,048
Construction in progress
39,772,907
1,759,645
41,532,552
Capital assets (net of accumulated
depreciation)
206,758,783
249,051,370
455,810,153
Total assets
532,313,953
282,308,825
814,622,778
LIABILITIES
Accounts payable and
other liabilities
9,823,705
1,295,939
11,119,644
Interest payable
241,820
89,617
331,437
Unearned revenue
2,886,291
216,687
3,102,978
Non-current liabilities:
18,408,802
-
18,408,802
Due within one year
5,614,489
3,363,987
8,978,476
Due in more than one year
79,390,559
46,420,764
125,811,323
Total liabilities
97,956,864
51,386,994
149,343,858
NET ASSETS
Investment in capital assets,
net of related debt
378,440,636
208,682,683
587,123,319
Restricted for:
Promotional programs
2,106,370
-
2,106,370
Construction projects
18,408,802
-
18,408,802
Debt service
367,652
4,029,537
4,397,189
Unrestricted
35,033,629
18,209,611
53,243,240
Total net assets
$ 434,357,089 $
230,921,831 $
665,278,920
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-1
2009 Comprehensive Annual Financial Report
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2009
Page 1 of 2
City of Renton, Washington
Prior Period Adjustment
Net assets - ending
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-2
PROGRAM REVENUES
OPERATING
CHARGES FOR
GRANTS AND
CAPITAL GRANTS
FUNCTIONS/PROGRAMS
EXPENSES
SERVICES
CONTRIBUTIONS
& CONTRIBUTIONS
Primary government:
Governmental activities:
General government
$ 18,808,404 $
2,864,232
$ 8,663,430 $
1,848,256
Judicial
2,134,283
5,176,402
-
-
Security of persons and property
44,361,089
643,970
699,955
4,580,537
Physical environment
2,440,801
951,940
150,743
254,636
Transportation
11,765,835
3,178,543
610,388
9,317,165
Economic environment
6,669,911
1,965,125
272,647
-
Mental and physical health
328,333
-
1,726
-
Culture and recreation
16,992,266
2,377,290
630,768
91,340
Interest on long-term debt
2,848,081
-
-
-
Total governmental activities
106,349,003
17,157,502
11,029,657
16,091,934
Business -type activities:
Waterworks utility
35,617,861
33,278,345
20,225
3,440,151
Airport
1,865,481
1,254,732
-
4,116,550
Solid waste utility
14,143,956
14,234,026
26,042
Golf course
2,303,192
2,134,394
-
-
Total business -type activities
53,930,490
50,901,497
46,267
7,556,701
Total primary government
160,279,493
68,058,999
11,075,924
23,648,635
General revenues:
Taxes:
Property taxes
Retail sales taxes
Business taxes
Excise taxes
Penalties and interest
Interest and investment
earnings
Miscellaneous
Transfers
Total general revenues and
transfers
Change in net assets
Net assets - beginning
Prior Period Adjustment
Net assets - ending
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-2
2009 Comprehensive Annual Financial Report City of Renton, Washington
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2009
Page 2 of 2
NET (EXPENSE) REVENUE AND CHANGES IN NET ASSETS
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES TOTAL
$ (5,432,486)
3,042,119
(38,436,627)
(1,083,482)
1,340,261
(4,432,139)
(326,607)
(13,892,868)
(2,848,081)
(62,069,910)
$ (5,432,486)
3,042,119
(38,436,627)
(1,083,482)
1,340,261
(4,432,139)
(326,607)
(13,892,868)
(2,848,081)
(62,069,910)
1,120,860
1,120,860
3,505,801
3,505,801
116,112
116,112
(168,798)
(168,798)
4,573,975
4,573,975
(62,069,910) 4,573,975
(57,495,935)
32,300,319
32,300,319
22,065,316
22,065,316
14,876,496
14,876,496
4,923,978
4,923,978
1,353
-
1,353
1,118,889
396,957
1,515,846
172,594
1,207,689
1,380,283
(100,000)
100,000
-
75,358,945
1,704,646
77,063,591
13,289,035
6,278,621
19,567,656
420,652,779
223,857,729
644,510,508
415,275
785,481
1,200,756
$ 434,357,089 $
230,921,831 $
665,278,920
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-3
2009 Comprehensive Annual Financial Report
ASSETS
Cash & cash equivalents
Cash with fiscal agent
Investments
Receivables (net of allowances)
Taxes
Customer accounts
Accrued interest & penalty
Due from other funds
Due from other governmental units
Prepayments
TOTAL ASSETS
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2009
Page 1 of 2
MUNICIPAL
FACILITIES CAPITAL
GENERAL CIP IMPROVEMENT
City of Renton, Washington
OTHER TOTAL
GOVERNMENTAL GOVERNMENTAL
FUNDS FUNDS
$ 6,950,100 $
4,145,567 $
1,908,828 $
4,478,784 $
17,483,279
-
-
-
15,229
15,229
5,196,698
3,119,003
1,436,146
3,369,705
13,121,552
1,192,590
11,884
-
59,419
1,263,893
3,353,640
-
127,109
188,162
3,668,911
84,208
85,401
59,214
246,643
475,466
332,087
9,066
-
200,828
541,981
4,334,532
286,754
3,579,844
2,447,055
10,648,185
8,000
-
-
-
8,000
$ 21,451,855 $
7,657,675 $
7,111,141 $
11,005,825 $
47,226,496
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-4
2009 Comprehensive Annual Financial Report
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Taxes payable
Retainage payable
Due to other funds
Due to other governmental units
Custodial accounts
Deposits
Deferred revenue
Accrued employee wages and leave payable
Total liabilities
Fund balances
Reserved for:
Prepaid items
Unreserved, designated for:
General fund contingencies
Special revenue fund contingencies
Debt service fund contingencies
Capital project fund contingencies
Unreserved reported in:
General fund
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
City of Renton, Washington
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2009
Page 2 of 2
MUNICIPAL OTHER TOTAL
FACILITIES CAPITAL GOVERNMENTAL GOVERNMENTAL
GENERAL CIP IMPROVEMENT FUNDS FUNDS
$ 867,295 $
156,701 $
789,669 $
9,794 $
1,823,459
29,076
-
-
13,753
42,829
-
73,992
50,940
41,743
166,675
201,000
-
-
1,224
202,224
7,000
-
7,000
54,127
32,981
87,108
34,739
-
-
34,739
3,202,163
1,000,000
2,716,530
6,918,693
3,569,728
-
-
4,490
3,574,218
7,965,128
230,693
1,840,609
2,820,515
12,856,945
8,000
-
-
-
8,000
10,155,527
-
10,155,527
-
2,106,370
2,106,370
-
-
367,652
367,652
-
7,426,982
5,270,532
5,711,288
18,408,802
3,323,200
-
-
-
3,323,200
13,486,727
7,426,982
5,270,532
8,185,310
34,369,551
$ 21,451,855 $
7,657,675 $
7,111,141 $
11,005,825 $
47,226,496
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-S
2009 Comprehensive Annual Financial Report
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
December 31, 2009
FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
Amounts reported for governmental activities in the statement of net assets are
different because:
Capital assets and other non-current assets used in governmental activities
are not financial resources and therefore are not reported in the governmental funds
Other non-current assets
Capital assets (net of accumulated depreciation)
The focus of governmental funds is on short-term financing, assets are
offset by deferred revenue and are not included in fund balances.
Deferred revenue
Certain liabilities (such as bonds payable and accrued expenses) are not due and
payable in the current period and therefore are not reported in the governmental funds
Interest payable
Long-term liabilities
Internal service funds are used by management to charge the costs of
certain activities to individual funds.
Total assets and liabilities of the internal service funds that are reported with
governmental activities, less amounts reported above.
NET ASSETS OF GOVERNMENTAL ACTIVITIES
City of Renton, Washington
$ 40,353,587
$ 4,032,402
$ (241,820)
(85,005,048)
$ 16,691,998
$ 34,369,551
$ 434,357,089
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-6
2009 Comprehensive Annual Financial Report
REVENUES
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeits
Interfund revenues
Special assessments
Contributions
Investment earnings
Miscellaneous revenues
TOTAL REVENUES
EXPENDITURES
Current:
General government
Judicial
Security of persons and property
Physical environment
Transportation
Economic environment
Mental & physical health
Culture & recreation
Capital outlay
Debt service:
Principal payment
Interest payment
TOTAL EXPENDITURES
City of Renton, Washington
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2009
Page 1 of 1
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in
Transfer (out)
Intergovernmental loan
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
MUNICIPAL OTHER TOTAL
FACILITIES CAPITAL GOVERNMENTAL GOVERNMENTAL
GENERAL CIP IMPROVEMENT FUNDS FUNDS
$ 68,923,515 $
1,121,663 $
- $
1,500,522 $
71,545,700
2,316,471
-
1,733,963
2,175,937
6,226,371
9,997,242
5,017,007
8,107,245
846,955
23,968,449
31669,526
-
-
873,894
4,543,420
3,724,162
-
3,724,162
3, 228,110
3,228,110
1,353
-
-
-
1,353
150,544
91,340
209,921
65,000
516,805
315,898
268,017
15,409
154,283
753,607
169,504
-
-
1,500
171,004
92,496,325
6,498,027
10,066,538
5,618,091
114,678,981
12,161,678
-
-
762,321
12,923,999
2,134,283
-
-
2,134,283
44,138,330
1,910,637
46,048,967
2,431,213
-
21431,213
7,043,665
-
-
7,043,665
6,723,740
41,018
306,251
7,071,009
19,726
-
-
19,726
14,879,074
-
-
35,224
14,914,298
1,879,921
14,958,941
15,576,013
9,574,918
41,989,793
-
-
-
2,327,138
2,327,138
-
-
-
2,629,157
2,629,157
91,411,630
16,910,596
15,576,013
15,635,009
139,533,248
1,084,695
(10,016,918)
(10,412,569)
(5,509,475)
(24,854,267)
277,004
2,292,828
2,310,000
10,179,817
15,059,649
(1,392,069)
(5,025,462)
(21,399)
(4,007,070)
(10,446,000)
(30,370) (6,347,118) (3,220,874) (3,844,171) (13,442,533)
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-7
2009 Comprehensive Annual Financial Report City of Renton, Washington
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL ACTIVITIES
For the Year Ended December 31, 2009
NET CHANGES IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ (13,442,533)
Amounts reported for governmental activities in the statement
of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlays exceeded depreciation expense in the
current period. 29,690,489
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenue in the funds. 2,821,139
The issuance of long-term debt (e.g., bonds, leases) provides current financial
resources to governmental funds, while the repayment of the principal of
long-term debt consumes the current financial resources of governmental
funds. Neither transaction, however, has any effect on net assets. Also,
governmental funds report the effect of issuance costs, premiums, discounts,
and similar items when debt is first issued, whereas these amounts are deferrec
and amortized in the statement of activities. This amount is the net effect of
these differences in the treatment of long-term debt and related items (5,015,964)
Increase (decrease) in other non-current assets which include the Net Pensior
Asset and Investments in Joint Ventures which are not reported in governmenta
funds. 2,377,425
Internal service funds are used by management to charge the costs of certain
activities to individual funds. The net revenue (expense) of the internal service
funds are reported with governmental activities. (3,141,521)
CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 13,289,035
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-8
2009 Comprehensive Annual Financial Report City of Renton, Washington
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2009
Page 1 of 2
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS GOVERNMENTAL
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-9
OTHER
TOTAL
ACTIVITIES
WATERWORKS
SOLID
ENTERPRISE
ENTERPRISE
INTERNALSERVICE
UTILITY
WASTE
FUNDS
FUNDS
FUNDS
ASSETS
Current assets:
Cash & cash equivalents
$ 7,914,268 $
182,759
$ 928,094 $
9,025,121 $
11,683,002
Investments at fair value
5,960,027
137,503
1,030,335
7,127,865
8,789,949
Receivables (net of allowances):
Customer accounts
3,498,175
1,185,359
39,639
4,723,173
15,864
Special assessments - current
165,589
-
-
165,589
-
Interest - investments
224,014
13,003
61,745
298,762
353,264
Due from other funds
1,394
-
-
1,394
-
Interfund loan receivable
475,000
-
-
475,000
Due from other governmental units
196,888
99,508
145,101
441,497
11,905
Inventory of materials and supplies
495,303
-
39,628
534,931
-
Prepayments
-
-
-
266,844
Total current assets
18,930,658
1,618,132
2,244,542
22,793,332
21,120,828
Noncurrent assets:
Restricted cash & cash equivalents
-
-
441,358
441,358
-
Special assessments deferred
1,073,605
-
1,073,605
-
Capital assets (net)
235,200,082
22,587,254
257,787,336
9,786,522
Deferred charges and other assets
661,483
26,712
688,195
-
Total noncurrent assets
236,935,170
23,055,324
259,990,494
9,786,522
TOTAL ASSETS
$ 255,865,828 $
1,618,132
$ 25,299,866 $
282,783,826 $
30,907,350
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-9
2009 Comprehensive Annual Financial Report
LIABILITIES
Current liabilities:
Accounts payable
Retainage payable
Due to other funds
Interfund loans payable
Due to other governments
Accrued interest payable
Accrued employee wages and benefits payable
Accrued taxes payable
Custodial accounts
Deferred revenue
Revenue bonds payable
Operating leases payable
Total current liabilities
Long-term liabilities:
Revenue bonds payable
Unamortized premium on revenue bonds
Unamortized discount on revenue bonds
Deferred amount on revenue bond refunding
Accrued employee wages and benefits payable
Claims incurred but not reported
Operating leases payable
Public works trust fund loan payable
Total long-term liabilities
TOTAL LIABILITIES
NET ASSETS
Investment in capital assets,
net of related debt
Restricted for waterworks utility debt
Restricted for golf course debt
Unrestricted
TOTAL NET ASSETS
City of Renton, Washington
STATEMENT OF N ET ASSETS
PROPRIETARY FUNDS
December 31, 2009
Page 2 of 2
188,113,554 20,569,129 208,682,683 9,786,522
3,588,179 - 3,588,179 -
- 441,358 441,358 -
15, 501,245 1,512,248 1,196,118 18, 209,611 16,414,639
$ 207,202,978 $ 1,512,248 $ 22,206,605 $ 230,921,831 $ 26,201,161
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-10
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
GOVERNMENTAL
OTHER
TOTAL
ACTIVITIES
WATERWORKS
SOLID
ENTERPRISE
ENTERPRISE
INTERNAL SERVICE
UTILITY
WASTE
FUNDS
FUNDS
FUNDS
$ 338,529
$ 7,230 $
149,004 $
494,763 $
766,950
39,764
-
-
39,764
2,345
-
-
-
341,153
-
475,000
475,000
-
904,291
-
904,291
175,586
-
9,444
185,030
-
268,574
17,628
57,366
343,568
217,688
46,359
57,596
40,115
144,070
-
39,379
-
138,981
178,360
149,554
67,132
216,686
1,955,000
325,000
2,280,000
-
-
23,127
23,127
-
3,917,036
82,454
1,285,169
5,284,659
1,328,136
36,955,000
-
1,875,000
38,830,000
-
623,125
-
623,125
(567,998)
(181,875)
(749,873)
(130,399)
-
-
(130,399)
-
518,577
23,430
104,909
646,916
379,194
-
-
-
-
2,998,859
-
10,058
10,058
-
7,347,509
-
7,347,509
-
44,745,814
23,430
1,808,092
46,577,336
3,378,053
48,662,850
105,884
3,093,261
51,861,995
4,706,189
188,113,554 20,569,129 208,682,683 9,786,522
3,588,179 - 3,588,179 -
- 441,358 441,358 -
15, 501,245 1,512,248 1,196,118 18, 209,611 16,414,639
$ 207,202,978 $ 1,512,248 $ 22,206,605 $ 230,921,831 $ 26,201,161
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-10
2009 Comprehensive Annual Financial Report
City of Renton, Washington
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For the Year Ended December 31, 2009
OPERATING REVENUES:
Charges for services
Interdepartmental services
Other services
TOTAL OPERATING REVENUES
OPERATING EXPENSES:
Operations and maintenance
Benefit payments
Professional services
Administrative and general
Insurance
Taxes
Depreciation
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES(EXPENSES):
Intergovernmental revenues
Investment earnings
Gain (loss) on sale of capital assets
Other non-operating revenues (expenses)
Interest expense
Amortization of debt discount and expense
NON-OPERATING REVENUE NET OF EXPENSE
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS
Capital contributions
Transfers in
Transfers (out)
CHANGE IN NET ASSETS
NET ASSETS, JANUARY 1
Prior Year Adjustment
NET ASSETS, JANUARY 1 RESTATED
NET ASSETS, DECEMBER 31
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
OTHER TOTAL
WATERWORKS SOLID ENTERPRISE ENTERPRISE
UTILITY WASTE FUNDS FUNDS
GOVERNMENTAL
ACTIVITIES
INTERNAL SERVICE
FUNDS
$ 32,454,923 $
14,228,869 $
3,389,126 $
50,072,918 $
16,135,242
823,422
5,157
-
828,579
-
1,167,662
-
-
1,167,662
12,508,903
34,446,007
14,234,026
3,389,126
52,069,159
28,644,145
9,281,224
548,642
1,880,416
11,710,282
5,469,866
1,697,612
142,488
419,107
2,259,207
13,598,413
92,854
(65,853)
67,816
94,817
1,359,294
13,180,238
11,608,642
760,153
25,549,033
3,148,521
89,658
-
60,690
150,348
1,556,653
2,552,447
1,910,038
439
4,462,924
8,731
6,857,841
-
804,455
7,662,296
1,926,354
33,751,874
14,143,957
3,993,076
51,888,907
27,067,832
694,133
90,069
(603,950)
180,252
1,576,313
20,225
26,042
-
46,267
54,219
349,607
5,817
41,531
396,955
365,480
2,796
-
-
2,796
62,599
(892)
38,123
37,231
642,533
(1,776,929)
(140,834)
(1,917,763)
-
(89,055)
-
(34,764)
(123,819)
-
(1,494,248)
31,859
(95,944)
(1,558,333)
1,124,831
121,928
(699,894)
2,701,144
(800,115)
(1,378,081)
3,440,151
-
4,116,551
7,556,702
22,500
100,000
-
100,000
199,728
-
-
-
-
(5,020,000)
2,740,036
121,928
3,416,657
6,278,621
(2,096,628)
203,677,461
1,390,320
18,789,948
223,857,729
29,342,679
785,481
-
-
785,481
(1,044,890)
204,462,942
1,390,320
18,789,948
224,643,210
28,297,789
$ 207,202,978 $
1,512,248 $
22,206,605 $
230,921,831 $
26,201,161
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-11
2009 Comprehensive Annual Financial Report
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services
Cash received from other funds for services
Cash paid to suppliers for goods & services
Cash paid to other funds for goods & services
Cash paid to employees
Other operating receipts
Other non-operating receipts
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to/from other funds
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets
Capital contributions
Capital grants
Principal payments on debt
Interest payments on debt
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of investments
Payments for investments
Interest on investments
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS
CASH & CASH EQUIVALENTS, JANUARY 1
RESTRICTED CASH & CASH EQUIVALENTS, JANUARY 1
TOTAL CASH & CASH EQUIVALENTS, DECEMBER 31
City of Renton, Washington
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2009
Page 1 of 2
BUSINESS -TYPE ACTIVITIES
13,918,420 $
ENTERPRISE FUNDS
GOVERNMENTAL
OTHER
TOTAL ACTIVITIES
WATERWORKS SOLID ENTERPRISE
ENTERPRISE INTERNAL SERVICE
UTILITY WASTE FUNDS
FUNDS FUNDS
$ 32,452,545 $
13,918,420 $
3,376,829 $
49,747,794 $
-
918,953
-
-
918,953
28,644,970
(25,282,611)
(14,112,307)
(2,750,528)
(42,145,446)
(14,290,467)
429,291
(325,000)
429,291
(1,661,040)
(141,621)
(396,934)
(2,199,595)
(13,576,007)
-
(95,886)
(89,364)
(185,250)
4,129,326
1,904
(102,711)
(100,807)
-
6,859,042
(431,394)
37,292
6,464,940
4,907,822
100,000
100,000 (4,820,272)
100,000 (4,820,272)
(3,314,000)
283,850
(3,030,150)
(1,183,122)
-
-
-
22,500
20,225
20,225
-
(3,713,726)
(325,000)
(4,038,726)
(1,721,698)
24,444
(1,697,254)
(8,729,199)
(16,706)
(8,745,905)
(1,160,622)
6,987,999
-
6,987,999
-
12,497
(221,692)
(209,195)
2,504,512
395,496
3,128
50,499
449,123
785,144
7,383,495
15,625
(171,193)
7,227,927
3,289,656
5,613,338
(415,769)
(150,607)
5,046,962
2,216,584
2,300,930
598,528
1,078,701
3,978,159
9,466,418
-
-
441,358
441,358
-
$ 7,914,268 $
182,759 $
1,369,452 $
9,466,479 $
11,683,002
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-12
2009 Comprehensive Annual Financial Report
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization of
deferred charges
Other non-operating revenue
(Increase) decrease in
accounts receivable
(Increase) decrease in due from
other funds/governmental units
(Increase) decrease in inventory
& prepaid items
Increase(decrease)in vouchers
retainage payable
Increase (decrease) in due to
other funds/governmental units
Increase(decrease)in payables
& other short-term liabilities
Increase(decrease)in
customer deposits
Increase(decrease)in
deferred revenues
Increase(decrease)in accrued
employee leave benefits
Total adjustments
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Prior Period Adjustment
Contributions of capital assets
Net amort. bond prem. discount & bond issue costs
Increase in fair value of investments
Depreciation
City of Renton, Washington
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2009
Page 2 of 2
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
OTHER TOTAL
WATERWORKS SOLID ENTERPRISE ENTERPRISE
UTILITY WASTE FUNDS FUNDS
GOVERNMENTAL
ACTIVITIES
INTERNAL
SERVICE
FUNDS
$ 694,133 $ 90,069 $ (603,950) $ 180,252 $ 1,576,313
6,857,841
-
804,455
7,662,296
1,926,354
1,904
26,042
(102,711)
(74,765)
759,351
(1,170,040)
(315,606)
755
(1,484,891)
825
(379,469)
165,276
(89,364)
(303,557)
(4,528)
(86,498)
-
106,903
20,405
330,141
(90,699)
(75,890)
(166,589)
284,121
904,291
904,291
-
76,241
(398,042)
(17,930)
(339,731)
342,980
-
13,832
13,832
-
14,766
-
(20,981)
(6,215)
36,572
867
22,173
59,612
(307,735)
6,164,909
(521,463)
641,242
6,284,688
3,331,509
$ 6,859,042 $
(431,394) $
37,292 $
6,464,940 $
4,907,822
$ 785,481 $
$
- $
785,481 $
(1,044,890)
3,440,151
4,116,551
7,556, 702
89,055
34,764
123,819
-
(182,700)
(182,700)
-
6,857,841
804,455
7,662,296
1,926,354
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-13
2009 Comprehensive Annual Financial Report
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
December 31, 2009
ASSETS
Cash & cash equivalents
Investments at fair value:
Federal National Mortgage Association
US Treasury Strips
Certificates of deposit
Receivables (net of allowances)
Interest on investments
TOTAL ASSETS
LIABILITIES
Vouchers & contracts payable
Deposits payable
TOTAL LIABILITIES
NET ASSETS
Held in trust for pension benefits
& other purposes
PENSION TRUST
PENSION
$ 834,035 $
112,861
3,715,025
627,505
2,802,600
8,092,026
$ 8,092,026 $
City of Renton, Washington
AGENCY
DEPOSITS
518,893
390,400
63,706
845,587
909,293
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-14
2009 Comprehensive Annual Financial Report City of Renton, Washington
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIREMEN'S PENSION FUND
For the Year Ended December 31, 2009
DEDUCTIONS:
Benefit payments 443,618
Administrative and general 36,296
TOTAL DEDUCTIONS 479,914
NET INCREASE (DECREASE) (848,751)
NET ASSETS -JANUARY 1 8,940,777
NET ASSETS - DECEMBER 31 $ 8,092,026
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-15
PENSION TRUST
FIREMEN'S
PENSION
ADDITIONS:
Other contributions:
Fire insurance premiums transferred in
$ 106,623
Investment income
Investment interest
359,381
Net increase / (decrease) in the fair value of investments
(834,841)
TOTAL ADDITIONS
(368,837)
DEDUCTIONS:
Benefit payments 443,618
Administrative and general 36,296
TOTAL DEDUCTIONS 479,914
NET INCREASE (DECREASE) (848,751)
NET ASSETS -JANUARY 1 8,940,777
NET ASSETS - DECEMBER 31 $ 8,092,026
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-15
2009 Comprehensive Annual Financial Report City of Renton, Washington
NOTES TO THE FINANCIAL STATEMENTS
January 1, 2009 through December 31, 2009
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Renton was incorporated on September 6, 1901, and operates under the laws of the
State of Washington applicable to a Non -Charter code city with a Mayor/Council form of
government. A full-time Mayor and seven part-time Council members serve the City, all elected
at large to four-year terms. The City provides the full range of municipal services authorized by
state statues, together with a Municipal Airport, a Waterworks Utility, a Solid Waste Utility, and
a Municipal Golf Course.
The accounting and reporting policies of the City related to the funds included in the
accompanying financial statements conform to generally accepted accounting principles (GAAP)
applicable to state and local governments. GAAP for local governments include those principles
prescribed by the Governmental Accounting Standards Board (GASB), the Financial Accounting
Standards Board (FASB), when applicable, and the American Institute of Certified Public
Accountants (AICPA) pronouncements that have been made applicable by GASB Statements or
Interpretations.
In accordance with GASB Statement 20, the City has not applied to its enterprise activities FASB
Statements and Interpretations, Accounting Principles Board opinions, and Accounting
Research Bulletins of the Committee of Accounting Procedure issued after November 30, 1989.
The City has implemented all applicable GASB Statements through Statement No. 53, with the
exception of GASB Statement No. 51. The City is required to implement Statement No. 51:
Accounting and Financial Reporting for Intangible Assets by 2010. All other applicable
statements were implemented prior to 2008.
A. REPORTING ENTITY
As required by GAAP the City's financial statements present the City of Renton — the primary
government.
The City of Renton's Mayor appoints the Governing Board for the Renton Housing Authority,
which is not considered a component unit of the City. The City is under no obligation to
subsidize, nor does it exercise any other prerequisite for inclusion.
The City of Renton has no component units (either blended or discretely presented) included in
these statements.
B. BASIC FINANCIAL STATEMENTS— GASB 34 PRESENTATION
The City's basic financial statements include both government -wide (reporting the City as a
whole) and fund financial statements (reporting the City's major funds). Both the government -
Basic Financial Statements, 4-16
2009 Comprehensive Annual Financial Report City of Renton, Washington
wide and fund financial statements categorize primary activities as either government or
business -type.
GOVERNMENT -WIDE STATEMENTS
In the Government -wide Statement of Net Assets, both the governmental and business -type
activities columns (a) are presented on a consolidated basis by column, and (b) are reported on
a full accrual, economic resource basis, which recognized all long-term assets and receivables as
well as long-term debt and obligations. The City's net assets are reported in three parts —
investment in capital assets, net of related debt; restricted net assets; and unrestricted net
assets. The City first utilizes restricted resources to finance qualifying activities.
The Government -wide Statement of Activities reports both the gross and net cost of each of the
City's functions and business -type activities (general government, judicial, security of persons
and property, physical environment, transportation, economic environment, mental and
physical health, culture and recreation, waterworks utility, airport, solid waste utility, and golf
course). General government revenues (property taxes, timber taxes, retail sales and use taxes,
business taxes, excise taxes, and other taxes) also support the functions. The Statement of
Activities reduces gross expenses (including depreciation) by related program revenues,
operating and capital grants and contributions. Program revenues must be directly associated
with the function or a business -type activity. Operating grants include operating specific and
discretionary (either operating or capital) grants while the capital grants column reflects capital
specific grants.
General revenues normally cover the net cost, by function or business -type activity.
The Government -wide focus is more on the sustainability of the City as an entity and the
change in the City's net assets resulting from the current year's activities.
The City's fiduciary funds are presented in the fund financial statements. Since the assets are
being held for the benefit of a third party and cannot be used for obligations of the City, they
are not included in the Government -wide statements.
FUND FINANCIAL STATEMENTS
In the fund financial statements, the financial transactions are recorded in individual funds,
each accounted for by a separate set of self -balancing accounts that comprise assets, liabilities,
reserves, fund equity, revenues, and expenditures or expenses. The presentation is by major
funds in either the governmental or business -type categories. GASB Statement 34 sets forth
the minimum criteria for the determination of a major fund. The non -major funds are
combined in the fund financial statements and are detailed in the combining section.
The governmental major fund statements in the fund financial statement are presented on
current financial resources and modified accrual basis of accounting. Since governmental fund
statements are presented on a different measurement focus and basis of accounting than the
Government -wide statements' governmental column, reconciliation is presented at the end of
Basic Financial Statements, 4-17
2009 Comprehensive Annual Financial Report City of Renton, Washington
the statement, which briefly explains the adjustments necessary to transform the fund
statements into the Government -wide presentation.
Internal service funds of a government are presented in summary form as part of the
proprietary fund financial statements. Since the principal users of the internal services are the
City's governmental activities, financial statements for internal service funds are consolidated
into the governmental column when presented at the governmental level. These services are
reflected in the appropriate functional activity (general government, judicial, security of
persons and property, physical environment, transportation, economic environment, mental
and physical health, culture and recreation).
Interfund fund activity has been eliminated from the Government -wide financial statements.
Exceptions are payments in lieu of taxes, external type transactions within the internal service
funds (revenue and expenses for interest or services provided to other governmental
organizations), and other charges for utilities. Elimination of these charges would distort the
direct cost and program revenues for these functions.
The following describes each fund as presented in the fund financial statements.
f►X1191:1111011Ili
GOVERNMENTAL FUNDS
GENERAL FUND
The General Fund is the primary operating fund of the city. It is used to account for the
resources and disbursements of ordinary City operations that are not required to be accounted
for in another fund. These include the costs of legislative and executive departments, court
services, finance and legal departments, development services, police and fire departments,
human resources and technical services, community services, parks, economic development,
streets, library and museum, parking garage maintenance, fire memorial, and fire department's
health and wellness programs. The major sources of revenue are property taxes, utility taxes,
and sales taxes. Licenses and permits, charges for services, and fines and forfeits provide
additional support. Community development block grant activities are accounted for within
this fund, which is federally funded.
MUNICIPAL FACILITIES CIP FUND
The Municipal Facilities Construction Fund accounts for the acquisition and development of
municipal facilities. Resources include general and special revenue taxes, grants, and Council -
approved general obligation bonds.
CAPITAL IMPROVEMENT FUND
This fund supports the City of Renton transportation projects and projects linked with various
State and Federal funding programs. Many of the projects depend on grants, LIDs, and
mitigation revenue.
Basic Financial Statements, 4-18
2009 Comprehensive Annual Financial Report
ENTERPRISE FUNDS
City of Renton, Washington
WATERWORKS UTILITY
The Waterworks Utility Fund accounts for all operation and capital improvement programs for
water, wastewater, and storm water services within the City. The activities primarily supported
by user fees include: administration, billings and collections, debt service, engineering and
operation, maintenance and repairs. The primary resources for the capital improvement
programs are revenue bond proceeds, grants (as available), and utility collection charges.
SOLID WASTE
Solid waste, recycling, and yard waste collection services for the City are accounted for in this
fund, supported entirely by service fees. The expenses include payment to the City's garbage
contractor and other service charges.
NON -MAJOR FUNDS
SPECIAL REVENUE FUNDS
ARTERIAL STREET FUND
The Arterial Street Fund was established pursuant to state law allocating the one-half cent State
Gasoline Tax revenue to cities and towns for construction, improvements, and major repair of
streets.
LEASED CITY PROPERTY FUND
Accounts for revenue and expenditures related to City property leased to outside entities.
HOTEL/MOTEL TAX FUND
Accounts for monies collected through an increase of one percent in hotel/motel taxes for the
purpose of increasing tourism in the City of Renton.
PATHS AND TRAILS RESERVE FUND
The Paths and Trails Reserve Fund was created for the purpose of planning, accommodating,
and establishing and maintaining certain paths and trails within the City of Renton.
1% FOR ART FUND
The City of Renton established this fund to account for one percent of construction project
actual costs to be used for the selection, acquisition and/or installation of works of art to be
placed in, on, or about City public facilities.
CABLE COMMUNICATIONS DEVELOPMENT FUND
The Cable Communications Development Fund accounts for funding for promotion and
development of cable communications as established by City ordinance.
Basic Financial Statements, 4-19
2009 Comprehensive Annual Financial Report
City of Renton, Washington
SPRINGBROOK WETLANDS BANK FUND
The City of Renton established this fund in 2007 for the purpose of providing accounting for the
Springbrook Creek Wetland and Habitat Mitigation Bank project. The fund will receive revenue
by selling Wetlands Credits to third parties and to the City's internal departments.
DEBT SERVICE FUNDS
GENERAL GOVERNMENTAL MISCELLANEOUS DEBT SERVICE FUND
This debt service fund accounts for the following outstanding debt issues:
• 1997 limited tax general obligation bonds which provided funding for the
purchase of Renton City Hall.
• 2001 limited tax general obligation refunding bonds which refunded a
portion of the 1997 limited tax general obligation bonds for the purchase
of Renton City Hall.
• 2001 limited tax general obligation bonds which provided funding for the
construction of a downtown parking facility.
• 2002 limited tax general obligation bonds which provided funding for the
construction of a new fire station.
• 2006 limited tax general obligation bonds which provided funding for the
construction of South Lake Washington infrastructure improvements.
• 2000 intergovernmental debt related to the construction of a new facility
for Valley Communications Center.
• 2009 intergovernmental debt related to the Fire District #40 asset transfer
as a result of the Benson Hill annexation.
1989 UNLIMITED GENERAL OBLIGATION BOND REDEMPTION FUND
This debt service fund accounts for debt service on a voter -approved bond issue, which
provided financing to acquire, construct, rehabilitate, equip, and develop low-income
housing for the elderly.
CAPITAL PROJECT FUNDS
COMMUNITY DEVELOPMENT IMPACT MITIGATION FUND
Accounts for monies collected from developers to offset impacts created by their developments
to City facilities.
FIRE IMPACT MITIGATION FUND
Accounts for monies collected from developers to offset impacts created by their developments
to City facilities.
Basic Financial Statements, 4-20
2009 Comprehensive Annual Financial Report City of Renton, Washington
TRANSPORTATION IMPACT MITIGATION FUND
Accounts for monies collected from developers to offset impacts created by their developments
to City facilities
SOUTH LAKE WASHINGTON INFRASTRUCTURE PROJECT FUND
The South Lake Washington Infrastructure Project Fund accounts for the infrastructure
improvements at the south end of Lake Washington. Primary resources include: REET, sales
tax, grants, and GO Bonds which provide for the design, construction, labor wages and benefits,
and equipment required to implement the project.
ENTERPRISE FUNDS
AIRPORT FUND
Provides accounting for revenues and expenses, which provides administration, debt services,
operation, capital improvements, and maintenance of the Renton Municipal Airport and Will
Rodger -Wily Post Memorial Seaplane Base. Sources of support to the fund are leases, fuel
charges, investment interest, and grant funding as available.
GOLF COURSE FUND
The Golf Course Fund was created after the City acquired the Maplewood Golf Course. The
fund accounts for the operation, maintenance, debt service, and capital improvements of the
facility.
OTHER FUND TYPES
INTERNAL SERVICE FUNDS
EQUIPMENT RENTAL
The Equipment Rental Fund accounts for the costs of maintaining and replacing all City vehicles
and auxiliary equipment, except for fire apparatus and replacement of police patrol vehicles. In
addition, this fund accounts for the City's information technology, facilities and
communications costs. All costs, including depreciation, are factors in calculating the rates that
are charged to each user department
INSURANCE FUND
The Insurance Fund provides accounting for self-insurance services to all City departments,
including provisions for losses on property, liability, worker's compensation, unemployment
compensation, and the health care program. The Insurance Fund pays expenses and rates are
charged to departments based on use and/or coverage requirements.
Basic Financial Statements, 4-21
2009 Comprehensive Annual Financial Report City of Renton, Washington
FIDUCIARY FUNDS
Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an
agent for individuals, private organizations, other governmental units and/or other funds. The
City has one Pension Trust Fund and one Agency Fund.
PENSION TRUST FUND
FIREMEN'S PENSION FUND
The Firemen's Pension Fund accounts for the payment of administrative costs and benefits for
retired firefighters and their beneficiaries, who were employed prior to March 1, 1970. Primary
revenues sources are general property tax allocations in accordance with actuarial calculations,
the fire premium tax, and investment income.
AGENCY FUND
SPECIAL DEPOSIT FUND
The Special Deposit Fund was established for the purpose of holding or retaining cash deposits
or other securities pending fulfillment of certain conditions and/or requirements by the
depositor. Refunds are made when all obligations have been met and only upon authorization
from the transmitting department.
[�LTil1e\;111.14PiIQki:161401.17e10Id1-TeVI [Sol'ff_T414L9111►kII►10
Basis of Accounting refers to the point at which revenues or expenditures/expenses are
recognized in the accounts and reported in the financial statements. It relates to the timing of
the measurement made regardless of the measurement focus applied:
1. Accrual
Both governmental and business -type activities in the Government -wide financial statements
and the proprietary and fiduciary fund financial statements are presented on the accrual basis
of accounting. Revenues are recognized when earned and expenses are recognized when
incurred.
Substantially all government fund revenues are accrued. Property taxes are billed and collected
within the same period in which taxes are levied. Subsidies and grants to proprietary funds,
which finance either capital or current operations, are reported as non-operating revenue
based on GASB Statement 33. In applying GASB Statement 33 to grant revenues, the provider
recognizes liabilities and expenses and the recipient recognizes receivables and revenue when
the eligibility requirements, including time requirements, are met. Resources transmitted
before the eligibility requirements are met, are reported as advances by the provider and
deferred revenue by the recipient.
Basic Financial Statements, 4-22
2009 Comprehensive Annual Financial Report City of Renton, Washington
2. Modified Accrual
The governmental funds financial statements are presented on the modified basis of
accounting. Under the modified accrual basis of accounting, revenues are recorded when
susceptible to accrual: i.e., both measurable and available. "Available" means collectible within
the current period or soon enough thereafter to be used to pay liabilities of the current period.
The City considers all revenue reported in the governmental funds to be available if the
revenues are collected within sixty days after year-end. Expenditures are generally recognized
under the modified accrual basis of accounting when the related liability is incurred. The
exception to this general rule is that principal and interest on general obligation long-term
debt, if any, is recognized when due.
D. ASSETS, LIABILITIES, AND FUND EQUITY
1. Cash and Cash Equivalents
The City has defined cash and cash equivalents as cash on hand, demand deposits, and all
highly liquid investments (including restricted assets) with maturity of three months or less
when purchased. These amounts are classified on the balance sheet or in the statement of net
assets as cash and cash equivalents or investments in the various funds. The interest on these
investments is prorated to the applicable funds. Included in this category are all funds invested
in the Local Government Investment Pool and Municipal Investor Account. Excluded from this
category are cash balances held by Fiscal Agents since the City does not have discretionary use
of these funds.
2. Investments (refer to Note 3B.)
3. Receivables and Payables — Amounts owed/payable to/by the City at year-end.
Taxes receivable consists of property taxes and related interest and penalties (refer to Note 4).
Accrued interest receivable consists of amounts earned on investments, notes, and contracts.
Accrued interest payable consists of amounts owed on notes, loans, and contracts.
Customer accounts receivable/payable consists of amounts owed from/to private individuals or
organizations for goods and services. If the transactions are with another governmental unit, it
is accounted for within "due from/to other governments."
Special assessments are recorded when levied and are liens against the property benefited.
Special assessments receivable consist of current and delinquent assessments and related
interest and penalties. Deferred assessments consist of special assessments not due within one
year.
Receivables have been reported net of estimated uncollectible accounts. Because property
taxes, special assessments, and utility billings are considered liens on property, no estimated
uncollectible amounts are established.
Basic Financial Statements, 4-23
2009 Comprehensive Annual Financial Report City of Renton, Washington
Activity between funds that are representative of lending/borrowing arrangements outstanding
at the end of the fiscal year are referred to either "due to/from other funds" (i.e., the current
portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of
interfund loans). All other outstanding balances between the governmental activities and
business -type activities are reported in the Government -wide financial statements as "internal
balances" (Refer to Note 10).
Advances between funds, as reported in the fund financial statements, are offset by a fund
balance reserve account in applicable governmental funds to indicate that they are not
available for appropriation and are not expendable available financial resources.
In the Government -wide financial statements, and proprietary fund types in the fund financial
statements, long-term liabilities are reported in applicable governmental activities, business -
type activities, or proprietary fund type statement of net assets.
Unamortized Premium — the unamortized portion of the excess of bonds proceeds over their
face value (excluding accrued interest and issuance costs).
Deferred Amount -Refunding — The difference between the carrying amount of
redeemed/defeased debt and its reacquisition price. This amount is deferred and amortized
over the remaining life of the debt, or the life of the new debt, whichever is shorter.
4. Inventories and prepaid items
All City inventories are maintained on a consumption basis of accounting where items are
purchased for inventory and charged to the budgetary accounts as the items are consumed.
Any material inventories at year-end are included in the balance sheet of the appropriate fund.
Inventories are carried at cost on the first in, first out — FIFO basis. Certain payments to
vendors reflect costs applicable to future accounting periods and are reported as prepaid items
in both the Government -wide and fund statements.
5. Capital Assets and Depreciation (refer to Note 5).
6. Deferred Revenues
This account includes amounts recognized as receivables but not revenues in the governmental
funds because the revenue recognition criterion has not been met.
7. Custodial Accounts
This account reflects the liability for net monetary assets being held by the City in its agency
capacity.
8. Compensated Absences
The City accrues accumulated unpaid vacation and other leave and associated employee -
related costs when earned (or estimated to be earned) by the employee. The non-current
portion (the amount estimated to be used in subsequent fiscal years) for governmental funds is
Basic Financial Statements, 4-24
2009 Comprehensive Annual Financial Report City of Renton, Washington
maintained separately and represents a reconciling item between the fund and Government -
wide presentations.
9. Fund Balance Designations and Reservations
In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for appropriation or are legally restricted by outside parties for
use for a specific purpose. Designations of fund balance represent tentative management plans
that are subject to change. The City has the following reserved or designated fund balances.
10. Net Assets (refer to Note 11).
11. Encumbrances
An encumbrance system is maintained to account for commitments resulting from approved
purchase orders, contracts, and other commitments. Encumbrances remaining at year-end
lapse and are canceled. Upon request by the department and approval of the City Council,
encumbrances may be re -appropriated in the following year.
E. REVENUES, EXPENDITURES, AND EXPENSES
1. Program Revenues
Program revenues include charges for services to customers for goods and services provided,
operating grants and contributions, and non-operating grants and contributions within the
Government -wide Statement of Activities. Charges for services include business licenses,
construction permits, and weapon permits.
2. General Revenues
Property taxes, timber taxes, retail taxes, business taxes, excise taxes, and associated penalties
and interest, and interest and investment earnings are classified as general revenues within the
Government -wide Statement of Activities.
3. Interfund Transfers
Permanent reallocation of resources between funds of the reporting entity are classified as
interfund transfers. For purposes of the Government -wide Statement of Activities, all interfund
transfers between individual governmental funds have been eliminated.
4. Expenditures/Expenses
Expenses in the Government -wide Statement of Activities are reported by function as a
governmental activity (general government, judicial, security of persons and property, physical
environment, transportation, economic environment, culture and recreation, or interest on
long-term debt) or business -type activity (waterworks utility, airport, solid waste utility, or golf
course). In the fund financial statements, expenditures of governmental funds are classified by:
function, debt service principal and interest payments, or purchases of capital items.
Proprietary expenditures are classified as operating or non-operating.
Basic Financial Statements, 4-25
2009 Comprehensive Annual Financial Report City of Renton, Washington
5. Operating and Non-operating Revenues and Expenses
Operating revenues and expenses for proprietary funds are those that result from providing
services and producing and delivering goods and/or services in connection to the proprietary
fund's principle ongoing operations. It includes all revenue and expenses not related to capital
and related financing, non -capital financing, or investing activities. All revenues and expenses
not meeting this definition are non-operating revenues and expenses.
NOTE 2. COMPLIANCE AND ACCOUNTABILITY
The City of Renton budgets its funds under Generally Accepted Accounting Principles (GAAP) at
the fund level. Annual appropriated budgets are adopted for governmental funds. Budgets for
proprietary funds are "management budgets" and are not legally required to be reported.
Included in the Required Supplemental and Combining sections of the CAFR are Schedules of
Revenues, Expenditures, and Changes in Fund Balances (Budget to Actual) reporting the Actual
Budgetary GAAP Basis verses Actual GAAP Basis of Accounting for all legally adopted budgets.
There have been no material violations of finance -related legal or contractual provisions, and
there have been no expenditures exceeding legal appropriations in any of the funds of the City.
A. PROCEDURES FOR ADOPTING THE ORIGINAL BUDGET
The City of Renton's budget procedures are mandated by the Chapter 35A.33 of the Revised
Code of Washington (RCW). The steps in the budget process are as follows:
1. Prior to November 1, the Mayor submits a proposed budget to the City Council. This budget
is based on priorities established by the Council; estimates provided by the City
departments during the preceding months; balanced by revenue estimates made by the
Mayor.
2. The City Council conducts public hearings on the proposed budget in November and
December.
3. The Council makes their adjustments to the proposed budget and adopts, by ordinance, a
final balanced budget no later than December 31.
4. The final operating budget, as adopted, is published and distributed within the first four
months of the following year.
B. AMENDING THE BUDGET
The budget, as adopted, constitutes the legal authority for expenditures. Budgets are adopted
on the GAAP basis of accounting. Any comparisons between budget and actual revenues and
expenditures are reported under the GAAP basis. The annual budget is adopted with budgetary
control at the fund level, so expenditures may not legally exceed appropriations at that level of
detail. Transfers or revisions within funds are allowed, but only the City Council has the legal
authority to increase or decrease a given fund's annual budget. This is accomplished by City
ordinance. The budget was amended six times during 2009.
Basic Financial Statements, 4-26
2009 Comprehensive Annual Financial Report
City of Renton, Washington
Original budgeted inflows as compared to the final budgeted inflows are as follows:
Fund
Original
Budgeted
Inflows
Final
Budgeted
Inflows
Increase
(Decrease)
Budgeted
Inflows
General Fund
$96,276,647
$93,553,712
($2,722,935)
Arterial Street Fund
638,575
638,575
-
Leased City Properties Fund
1,244,322
1,972,375
728,053
Hotel/Motel Tax Fund
340,400
340,400
-
1%for Art Fund
-
45,000
45,000
Cable Communications Development Fund
85,674
85,674
-
Springbrook Wetlands Bank Fund
10,500
10,500
General Government Miscellaneous Debt Service Fund
4,590,381
3,476,031
(1,114,350)
1989 UGO Bond Redemption Fund
5,100
5,100
-
Community Development Impact Mitigation Fund
300,000
305,696
5,696
Fire Impact Mitigation Fund
300,000
300,000
-
Transportation Impact Mitigation Fund
900,000
573,102
(326,898)
Municipal Facilities CIP Fund
8,621,329
15,167,559
6,546,230
General Government Capital Improvement Fund
22,616,348
28,501,221
5,884,873
South Lake Washington Infrastructure Project Fund
12,500,000
12,594,767
94,767
Airport Fund
4,076,932
6,364,582
2,287,650
Solid Waste Utility Fund
15,123,236
15,123,236
-
Golf Course Fund
2,623,779
2,623,779
-
Waterworks Utility Fund
41,515,855
47,339,431
5,823,576
Equipment Repair and Replacement / IS / Facilities /
Communications Fund
14,055,403
14,934,367
878,964
Insurance Fund
16,189,456
16,182,218
(7,238)
Firemen's Pension
290,000
290,000
-
TOTAL
$242,303,937
$260,427,325
$18,123,388
Basic Financial Statements, 4-27
2009 Comprehensive Annual Financial Report
City of Renton, Washington
Original budgeted outflows as compared to the final budgeted outflows are as follows:
Fund
Original
Budgeted
Outflows
Final
Budgeted
Outflows
Increase
(Decrease)
Budgeted
Outflows
General Fund
$96,978,473
$96,170,475
($807,998)
Arterial Street Fund
750,000
750,000
Leased City Properties Fund
1,244,322
2,609,281
1,364,959
Hotel/Motel Tax Fund
295,000
326,000
31,000
1% for Art Fund
-
45,000
45,000
Cable Communications Development Fund
85,674
85,674
General Government Miscellaneous Debt Service Fund
4,590,381
4,518,031
(72,350)
1989 UGO Bond Redemption Fund
523,230
523,230
-
Community Development Impact Mitigation Fund
-
711,038
711,038
Fire Impact Mitigation Fund
300,000
300,000
-
Transportation Impact Mitigation Fund
900,000
3,173,102
2,273,102
Municipal Facilities CIP Fund
8,700,174
26,834,093
18,133,919
General Government Capital Improvement Fund
22,675,579
31,034,671
8,359,092
South Lake Washington Infrastructure Project Fund
12,500,000
13,693,912
1,193,912
Airport Fund
4,338,379
6,893,629
2,555,250
Solid Waste Utility Fund
14,899,606
14,892,198
(7,408)
Golf Course Fund
2,628,369
2,810,801
182,432
Waterworks Utility Fund
46,641,269
57,872,996
11,231,727
Equipment Repair and Replacement / IS / Facilities /
Communications Fund
11,936,385
14,562,096
2,625,711
Insurance Fund
21,129,706
21,122,468
(7,238)
Firemen's Pension
542,276
542,276
-
TOTAL
$251,658,823
$299,470,971
$47,812,148
At year-end 2009, the City of Renton noted the Community Development Impact Mitigation
Fund exceeded its final adopted budget by $5,696.
NOTE 3. DEPOSITS AND INVESTMENTS
A. Deposits
The City's deposits and certificates of deposit are insured by the Federal Depository Insurance
Corporation (FDIC) and the State of Washington Public Deposit Protection Commission
(WPDPC) Act of 1969.
B. Investments
The City invests excess and inactive funds in accordance with the City's Investment Policy (last
updated and approved on February 23, 2009), which complies with the guidelines within
Chapter 35A.40.050 RCW. This allows for investment of excess cash and inactive cash, directs
that the responsibility for determining available cash for investment is placed upon the
department administering the funds, and allows for pooling of the cash provided that the
allocation of income is proportionate to the investment of each fund.
Currently, the City invests in obligations of the U.S. Government, U.S. agency issues, Certificates
of Deposit with Washington State banks and savings and loan institutions, the State of
Basic Financial Statements, 4-28
2009 Comprehensive Annual Financial Report City of Renton, Washington
Washington Local Government Investment Pool (LGIP), and general obligations of Washington
State municipalities.
The LGIP, managed by the Washington State Office of the Treasurer, is comparable to a Rule
2a7 -pools recognized by the Securities and Exchange Commission. A 2a7 -like -pool is an
external investment pool that is not registered with the SEC as an investment company but
nevertheless has a policy that it will, and does, operate in a manner consistent with the SEC's
Rule 2a7 of the Investment Company Act of 1940. Rule 2a7 allows SEC -registered mutual funds
to use amortized cost rather than market value to report net assets and compute share prices.
Investments are shown on the entity -wide Statement of Net Assets at fair value or for 2a7 -like
pools at amortized cost, which approximates fair value. Investments are reported within Cash
and Investments of Governmental Activities and within Cash and Cash Equivalents or
Investments of Business -type Activities.
C. Deposit and Investment Schedule
As of December 31, 2009, the City of Renton had the following investments:
Security Type
Cost
Fair Value
Weighted
Average
Maturity
Cash Equivalents
$ 1,352,928 $
-
-
11,572,883
441,358
27,971,447
Total Cash & Cash Equivalents
Local Government Investment Pool (LGIP)
$ 27,971,447
$ 27,971,447
0.00
Investments
4,845,791
33,885,157
Total Investments
Certificates of Deposit (within WPDPC)
30,057,271
30,057,271
0.73
FNMA ZERO COUPON
99,557
112,861
0.09
US TREASURY ZERO COUPON
2,767,870
3,715,025
2.44
Total Investments
$ 32,924,698
$ 33,885,157
Reconcilation of Note to Statements of Net Assets
Primary Government
Statement of Net Assets
Fiduciary
Statement of Net Assets
Total
Cash
Restricted Cash
Cash Equivalents (LGIP)
$ 10,219,955
441,358
27,971,447
$ 1,352,928 $
-
-
11,572,883
441,358
27,971,447
Total Cash & Cash Equivalents
38,632,760
1,352,928
39,985,688
Investments
29,039, 366
4,845,791
33,885,157
Total Investments
29,039,366
4,845,791
33,885,157
Total Cash & Investments
$ 67,672,126
$ 6,198,719 $
73,870,845
Basic Financial Statements, 4-29
2009 Comprehensive Annual Financial Report City of Renton, Washington
Credit risk. Credit Risk is the risk that an issuer or other counter party to an investment will not
fulfill its obligations. All Agency securities in the City's portfolio are rated "Aaa" by Moody's
Investors Service and "AAA" by Standard & Poor — each rating is the highest possible.
Certificates of Deposit are insured by the FDIC up to $250,000 and, additionally, by collateral
held in a multiple financial institution collateral pool administered by the Washington Public
Deposit Protection Commission (WPDPC). The Washington State Local Government Investment
Pool (LGIP) is a 2a7 -like -pool and is operated in a manner consistent with the SEC's Rule 2a7 of
the Investment Company Act of 1940.
Security Type
Cost
Fair Value
Moody's
S&P
Cash Equivalents
Local Government Investment Pool (LGIP)
$
27,971,447
$
27,971,447
unrated
unrated
Investments
Certificates of Deposit (within WPDPC)
$
30,057,271
$
30,057,271
unrated
unrated
FNMA ZERO COUPON
$
99,557
$
112,861
AAA
AAA
US TREASURY ZERO COUPON
$
2,767,870
$
3,715,025
AAA
AAA
Total Investments
$
32,924,698
$
33,885,157
The City's Investment Policy directs that the standard of prudence for investment activities shall
be the Prudent Investor Standard that states: "Investments shall be made with judgment and
care, under circumstances then prevailing, which person of prudence, discretion, and
intelligence would use in the management of their own affairs, not for speculation, but for
investment purposes, considering the probable safety of their capital as well as the probable
income to be derived."
Custodial Credit Risk. Custodial credit risk for investments is the risk that, in the event of the
failure of the counter party to a transaction, a government will not be able to recover the value
of investment or collateral securities that are in the possession of an outside party. All security
transactions, including collateral for repurchase agreements, entered into by the City are
conducted on a delivery -versus -payment (DVP) basis. Securities held by a third -party custodian
are designated by the City's Finance and Information Services Administrator. Certificates of
Deposit are delivered to and held by the Finance Division.
Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the
magnitude of a government's investment in a single issuer. The City diversifies its investment
instruments to avoid incurring unreasonable risk inherent with the over -investment of
instruments and issuers as follows:
Basic Financial Statements, 4-30
2009 Comprehensive Annual Financial Report City of Renton, Washington
Maximum's per Policy
Instrument
Maximum
Issuer
Maximum
U.S. Treasuries
100%
100%
U.S. Agencies
75%
50%
Certificates of Deposit (within WPDPC)
75%
20%
Local Governmental Investment Pool (LGIP)
75%
75%
Commercial Paper
25%
5%
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates over time, adversely
affecting the fair value of an investment. The City's portfolio is managed within the parameters
established by the Investment Policy, which limits the weighted average maturity of the
portfolio to five years.
Security Type
0-6 6 months -
months 1 year
1-3
years
3+
years
Totals
Cash Equivalents
Local Government Investment Pool (LGIP)
$ 27,971,447
$
27,971,447
Investments
Certificates of Deposit (within WPDPC)
30,057,271
30,057,271
FNMA ZERO COUPON
112,861
112,861
US TREASURY ZERO COUPON
178,443
722,298
2,814,284
3,715,025
TOTAL INVESTMENTS
$ - $ 30,235,714 $
722,298 $
2,927,145 $
33,885,157
►1011*1!111111111]CZ9]»:4Ivar_1114V
The King County Finance Director acts as an agent to collect property taxes levied in the county
for all taxing authorities. Taxes are levied annually, January 1, on property value listed as of the
prior August 31. Assessed values are established by the King County Assessor at 100 percent of
fair market value. A revaluation of all property is required every two years; however, King
County has the ability to revalue annually.
Property taxes levied by the King County Assessor and collected by the King County Finance
Director become a lien on the first day of the levy year and may be paid in two equal
installments if the total amount exceeds $30. The first half of real property taxes is due on April
30 and the balance is due October 31. Delinquent taxes bear interest at the rate of 12 percent
and are subject to additional penalties if not paid as scheduled. No allowance for uncollectible
taxes is established because delinquent taxes are considered fully collectible.
At year-end, property taxes are recorded as a receivable with the portion not expected to be
collected within 60 days offset by deferred revenue. During the year, property tax revenues are
recognized when cash is received.
The tax rate for general City operations is limited to $3.60 per $1,000 of assessed value (RCW
84.52.043). Of this amount, up to .45 cents per thousand dollars may be designated for
contribution to the Firemen's Pension Fund. If a report by a qualified actuary on the condition
of the Firemen's Pension Fund establishes that this amount (or portion of) is not necessary to
Basic Financial Statements, 4-31
2009 Comprehensive Annual Financial Report City of Renton, Washington
maintain the actuarial soundness of the fund, the amount can be used for any other municipal
purpose (RCW 41.16.060).
The tax rate limit may be reduced for any of the following reasons:
1. The Levy Limit: the levy limit calculation applies to a taxing district's budget, and not to
increases in the assessed value or tax bill of individual properties. Initiative 747 which
restricted individual taxing districts from collecting, in any year, more than a one percent
increase in their regular, non -voted, levy over the highest levy amount since 1985 was
overturned by the courts. However during 2007, the state legislature reinstated this limit
with the passage of HB2416. New construction, annexations, and excess levies approved by
the voters are not included in the levy limit calculation. If the assessed valuation increases
by more than one percent due to revaluation, the levy rate will be decreased.
2. The One Percent Constitution Limit: The Washington State Constitution limits the regular
(non -voted) combined property tax rate applied to an individual's property to one percent
($10 per $1,000) on the market valuation. Voters may approve special levies that are added
to this figure. If the taxes of all districts exceed this amount, each is proportionately
reduced until the total is at or below the one percent limit.
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations. There is
currently no excess levy for General Obligation Bond debt. The City's regular levy per the King
County Assessor's 2009 Annual Report is 2.36923.
NOTE 5. CAPITAL ASSETS AND DEPRECIATION
A. GENERAL POLICIES
Major expenditures for capital assets, including capital leases and major repairs that increase
the useful life, are capitalized. The capitalization threshold applied to the City's assets is
$5,000. Maintenance, repairs, and minor renewals are accounted for as expenditures or
expenses when incurred.
All capital assets are valued at historical cost (or estimated cost, where historical cost is not
known/or estimated market value for donated assets/or the original historical cost when
transferred between proprietary and governmental funds.)
The City has acquired certain assets with funding provided by federal financial assistance
programs. Depending on the terms of the agreements involved, the federal government could
retain an interest in these assets. However, the City has sufficient legal interest to accomplish
the purposes for which the assets were acquired, and has included such assets within the
applicable statements.
Basic Financial Statements, 4-32
2009 Comprehensive Annual Financial Report City of Renton, Washington
The City capitalizes art and historical treasures. Art and historical treasures are expected to be
maintained or enhanced over time and thus, are not depreciated.
B. GOVERNMENTAL CAPITAL ASSETS
Governmental long-lived assets of the City purchased, leased, or constructed are recorded as
expenditures in the governmental funds and are capitalized, net of depreciation, in the
Government -wide statements. The infrastructure component of GASB 34 for assets acquired
after January 1, 1980 was implemented retroactively in 2004. Any gain on the sale of capital
assets is recorded in the Statement of Activities as General revenues, Miscellaneous. Donated
capital assets are capitalized at estimated fair value of the item at the date of its donation.
C. PROPRIETARY FUND CAPITAL ASSETS
Capital assets of proprietary funds are capitalized in their respective statement of net assets,
net of depreciation. Any gain on the sale of capital assets is recorded in the Statement of
Activities as General revenues, Miscellaneous.
D. DEPRECIATION
Depreciation on all depreciable assets is provided on the straight-line basis over the following
useful lives:
Estimated
Type of Asset Service Life
Buildings and structures, except utility plant 10-50 years
Other improvements 10-80 years
Utility plant 25-75 years
Machinery and equipment 3-40 years
Infrastructure 25-50 years
Basic Financial Statements, 4-33
2009 Comprehensive Annual Financial Report
City of Renton, Washington
Depreciation Expense was charged to functions/programs of the primary government as
follows:
Governmental Activities
General Government
$ 3,379,947
Public Safety
908,006
Physical Environment
9,588
Transportation
2,594,767
Economic Development
47,068
Culture and Recreation
1,414,380
Mental and Physical Health
308,607
Internal Service Funds (General Governmental)
1,926,354
Total Depreciation Expense -Governmental Activities
$ 10,588,718
Business -Type Activities
Waterworks $ 6,857,842
Airport 475,691
Golf Course 328,764
Total Depreciation Expense -Business Type Activities $ 7,662,297
Basic Financial Statements, 4-34
2009 Comprehensive Annual Financial Report
E. SUMMARY OF CHANGES
Capital asset activity for the year ended December 31, 2009 was as follows:
City of Renton, Washington
Primary Government
Beginning
Balance
Prior Period
Adjustments
Adjusted
Beginning
Balance
Increases
Decreases
Ending
Balance
Governmental activities
10,014,741
914,235
10,928,976
847,411
10,016,742
1,759,645
Capital assets, not being depreciated:
16,991,062
914,235
17,905,297
847,411
10,016,742
8,735,966
Land and land improvements
$ 175,559,920
$
$ 175,559,920
$ 2,064,807 $
- $
177,624,727
Construction in progress
29,912,497
-
29,912,497
12,654,231
2,793,821
39,772,907
Total capital assets, not being depreciated
205,472,417
205,472,417
14,719,037
2,793,821
217,397,633
Capital assets, being depreciated:
5,990,421
5,990,421
88,977
-
6,079,398
Buildings and structures
72,597,693
72,597,693
21,204,683
-
93,802,376
Other improvements
169,883,836
169,883,836
3,392,695
173,276,531
Machinery and equipment
35,068,743
32,165
35,100,908
1,968,490
-
37,069,398
Total capital assets being depreciated
277,550,272
32,165
277,582,437
26,565,867
99,889
304,148,304
Less accumulated depreciation for:
5,224,831
-
5,224,831
159,117
-
5,383,948
Buildings and structures
24,001,478
-
24,001,478
2,152,935
99,889
26,154,413
Other improvements
42,815,659
-
42,815,659
5,229,918
-
48,045,577
Machinery and equipment
18,938,777
1,044,890
19,983,667
3,205,866
$ 10,016,742 $
23,189,533
Total accumulated depreciation
85,755,914
1,044,890
86,800,804
10,588,718
97,389,522
Total capital assets, being depreciated, net
191,794,358
(1,012,725)
190,781,633
15,977,149
206,758,782
Governmental activities capital assets, net
$ 397,266,775
$ (1,012,725)
$ 396,254,050
$ 30,696,186 $
2,793,821 $
424,156,416
Business -type Activities:
Capital assets, not being depreciated:
Land and land improvements
$ 6,976,321 $
-
$ 6,976,321
$ -
$ - $
6,976,321
Construction in progress
10,014,741
914,235
10,928,976
847,411
10,016,742
1,759,645
Total capital assets, not being depreciated
16,991,062
914,235
17,905,297
847,411
10,016,742
8,735,966
Capital assets, being depreciated:
Buildings and structures
16,805,055
-
16,805,055
390,853
-
17,195,908
Other improvements
306,759,638
306,759,638
19,751,353
99,889
326,411,102
Machinery and equipment
5,990,421
5,990,421
88,977
-
6,079,398
Total capital assets being depreciated
329,555,114
329,555,114
20,231,183
99,889
349,686,408
Less accumulated depreciation for:
Buildings and structures
4,674,615
4,674,615
429,851
-
5,104,466
Other improvements
83,044,430
128,754
83,173,184
7,073,329
99,889
90,146,624
Machinery and equipment
5,224,831
-
5,224,831
159,117
-
5,383,948
Total accumulated depreciation
92,943,876
128,754
93,072,630
7,662,297
99,889
100,635,038
Total capital assets, being depreciated, net
236,611,238
(128,754)
236,482,484
12,568,886
-
249,051,370
Business -type capital assets, net
$ 253,602,300 $
785,481
$ 254,387,781
$ 13,416,297
$ 10,016,742 $
257,787,337
Basic Financial Statements, 4-35
2009 Comprehensive Annual Financial Report
City of Renton, Washington
At the end of 2009, 45 projects comprise the Construction in Progress. Upon completion,
the projects will be capitalized in the Government -wide statements in their appropriate
categories and in the fund statements for proprietary funds, if applicable. Construction
commitments as of December 31, 2009, are as follows:
Business -Type Activities Projects
Construction
Remaining
Governmental Activities Projects
in progess
Commitment
DUVALLAVE NE
$ 14,168,947
$ 3,040,645
S 3RD STREET & SHATTUCK
165,783
160,044
SR169 HOV (140TH TO SR900)
7,509,161
66,459
SW 27TH ST/STRANDER BLVD
3,345,087
1,437,593
CEDAR RIVER TRAIL EXTENSION
73,255
-
CITY ATTORNEY'S OFFICE FURNITURE/EQUIPMENT
25,000
75,000
GARDEN AVE N WIDENING
112,090
6,978
LAKE WASH TRAIL CONNECTION
141,139
53,369
OFF LEASH DOG PARK DEVELOPMENT
19,706
ELLIOT SPAWNING CHANNEL
PARK MAINTENANCE FACILITY
432,480
-
PARKS LIGHT SYSTEM UPGRADE
251,240
-
RAINIER AVE - RR BRIDGE IS 7TH - 4TH)
12,597,068
1,073,675
REGIS PARK ATHLETIC FIELD EXPANSION
30,587
-
SAM CHASTAIN LAKE WA TRAIL
465,874
35,175
SPRINGBROOK TRAIL
68,424
SHATTUCK AVE S STORM SYSTEM
STREET OVERLAY
367,067
325,219
Total governmental activities
$ 39,772,907
$ 5,913,764
Business -Type Activities Projects
AUTOMATIC METER READING CONVERSION
$ 123,238.97
DENNYS LIFT STATION REHAB
117,354
LAKE WASHINGTON BEACH LS ELIM/REHAB
64,679
WESTVIEW LIFTSTATION REHAB
66,889
126TH AVE SE SEWER EXTENSION
49,675
196 ZONE RESERVOIR & PUMP STATION
180,144
608 HANGAR EXPANSION
37,396
820 BUILDING DEMOLITION
74,188
AIRPORT LAYOUT PLAN
98,937
APRON B DEVELOPMENT PROJECT
119,150
CARR ROAD - PANTHER
41,500
COMP S&SW MGMT PLAN P&D
31,804
DAYTON AVE NE & NE 22ND STRM SYSTEM
2,531
EARLINGTON SEWER REPLACEMENT
18,296
EAST RENTON LIFT STATION ELIMIN
61,910
ELLIOT SPAWNING CHANNEL
6,037
EMERGENCY POWER TO PUMP STATION
15,841
GYPSY BASIN/RIPLEY LANE STORM SYSTEM
4,031
LAKE AVE S - RAINIER AVE S STORM
15,820
MAINTENANCE DREDGING & SHORELINE
73,799
NE 5TH EDMONDS AVE NE STORM IMPROVEMENTS
5,624
PRECISION APPROACH
8,641
RENTON GATEWAY UTILITIES
35,175
SANITARY SEWER HYDRAULIC MODEL
96,701
SHATTUCK AVE S STORM SYSTEM
33,285
STONEGATE/SUMMERWIND LIFTSTATION REPLACEMENT
325,219
STORM SEWER COMP PLAN
27,410
UPDATE EMERGENCY RESPONSE PLAN
7,816
WSDOT I - 405 UTILITY RELOCATION
16,557
Total business -type activities
$ 1,759,645
8,852
79,117
78,925
29,474
452,789
29,331
32,087
2,389
3,948
51,242
59,094
59
208,176
34,950
7,632
32,653
8,021
$ 1,118,740
Basic Financial Statements, 4-36
2009 Comprehensive Annual Financial Report
NOTE 6. PENSION PLANS
City of Renton, Washington
With the exception of firefighters employed prior to March 1, 1970, substantially all City's full-
time and qualifying part-time employees participate in one of the following statewide
retirement systems administered by the Washington State Department of Retirement Systems,
under cost-sharing multiple -employer public employee defined benefit and defined
contribution retirement plans. The Department of Retirement Systems (DRS), a department
within the primary government of the State of Washington, issues a publicly available
comprehensive annual financial report (CAFR) that includes financial statements and required
supplementary information for each plan. The DRS CAFR may be obtained by writing to:
Department of Retirement Systems, Communications Unit, P.O. Box 48380, Olympia, WA
98504-8380.
The City is the administrator of the Firefighter Pension Plan for all firefighters employed prior to
March 1, 1970. The Firefighter Pension Plan is included within the City of Renton's statements
as a pension trust fund. There is no separate GAAP -based audited report. A schedule of
employer contributions for six years, prepared by Milliman, Consultants and Actuaries, is
included in the Required Supplemental Information section. Additional information from the
actuarial report prepared for the Firefighter Pension Plan, by Milliman, Consultants and
Actuaries, may be obtained by contacting the City of Renton, Finance Division, 1055 South
Grady Way, Renton, WA 98057.
The following disclosures are made pursuant to GASB Statements No. 27, Accounting for
Pensions by State and Local Government Employers and No. 50, Pension Disclosures, an
Amendment of GASB Statements No. 25 and No. 27.
Public Employees' Retirement System (PERS) Plans 1, 2, and 3
Plan Description
PERS is a cost-sharing multiple -employer retirement system comprised of three separate plans
for membership purposes: Plans 1 and 2 are defined benefit plans and Plan 3 is a defined
benefit plan with a defined contribution component.
Membership in the system includes: elected officials; state employees; employees of the
Supreme, Appeals, and Superior courts (other than judges currently in a judicial retirement
system); employees of legislative committees; community and technical colleges, college and
university employees not participating in national higher education retirement programs;
judges of district and municipal courts; and employees of local governments.
PERS participants, who joined the PERS system by September 30, 1977, are Plan 1 members.
Those who joined on or after October 1, 1977; and by either, February 28, 2002 for state and
higher education employees, or August 31, 2002 for local government employees, are Plan 2
members unless they exercise an option to transfer their membership to Plan 3. PERS
participants joining the system on or after March 1, 2002 for state and higher education
employees, or September 1, 2002 for local government employees, have the irrevocable option
Basic Financial Statements, 4-37
2009 Comprehensive Annual Financial Report City of Renton, Washington
of choosing membership in either PERS Plan 2 or PERS Plan 3. The option must be exercised
within 90 days of employment. An employee is reported in Plan 2 until a choice is made.
Employees who fail to choose within 90 days default to PERS Plan 3. Notwithstanding, PERS
Plan 2 and Plan 3 members may opt out of plan membership if terminally ill, with less than five
years to live.
PERS defined benefit retirement benefits are financed from a combination of investment
earnings and employer and employee contributions. PERS retirement benefit provisions are
established in state statute and may be amended only by the State Legislature.
PERS Plan 1 members are vested after the completion of five years of eligible service. Plan 1
members are eligible for retirement at any age after 30 years of service, or at age 60 with five
years of service, or at age 55 with 25 years of service. The annual benefit is two percent of the
average final compensation (AFC) per year of service, capped at 60 percent. (The AFC is based
on the greatest compensation during any 24 eligible consecutive compensation months.) Plan
1 members who retire from inactive status prior to the age of 65 may receive actuarially
reduced benefits. The benefit is actuarially reduced to reflect the choice of a survivor option. A
cost -of -living allowance (COLA) is granted at age 66 based on years of service credit times the
COLA amount, increased by three percent annually. Plan 1 members may also elect to receive
an additional COLA amount that provides an automatic annual adjustment based on the
Consumer Price Index. To offset the cost of this annual adjustment, the benefit is reduced.
PERS Plan 2 members are vested after completion of five years of eligible service. Plan 2
members may retire at age 65 with five years of service with an allowance of two percent of the
AFC per year of service. (The AFC is based on the greatest compensation during any eligible
consecutive 60 -month period.) Plan 2 members who retire prior to the age of 65 receive
reduced benefits. If retirement is at 55 or older with at least 30 years of service, a three
percent per year reduction applies; otherwise an actuarial reduction will apply. The benefit is
also actuarially reduced to reflect the choice of a survivor option. There is no cap on years of
service credit; and a cost -of -living allowance is granted (based on the Consumer Price Index),
capped at three percent annually.
PERS Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit
component, and member contributions finance a defined contribution component. The
defined benefit portion provides a benefit calculation at one percent of the AFC per year of
service. (The AFC is based on the greatest compensation during any eligible consecutive 60 -
month period.) Effective June 7, 2006, Plan 3 members are vested in the defined benefit
portion of their plan after ten years of service; or after five years if twelve months were earned
after age 44; or after five service credit years earned in PERS 2 prior to June 1, 2003. Plan 3
members are immediately vested in the defined contribution portion of their plan. Vested Plan
3 members are eligible to retire with full benefits at age 65, or at age 55 with 10 years of
service. Plan 3 members who retire prior to age 65 receive reduced benefits. If retirement is at
age 55 or older with at least 30 years of service, a three percent per year reduction applies;
otherwise an actuarial reduction will apply. The benefit is also actuarially reduced to reflect the
Basic Financial Statements, 4-38
2009 Comprehensive Annual Financial Report City of Renton, Washington
choice of a survivor option. There is no cap on years of service credit; and Plan 3 provides the
same cost -of -living allowance as Plan 2.
The defined contribution portion can be distributed in accordance with an option selected by
the member, either as a lump sum or pursuant to other options authorized by the Employee
Retirement Benefits Board.
Judicial Benefit Multiplier
Beginning January 1, 2007 through December 31, 2007 judicial members of PERS were given
the choice to participate in the Judicial Benefit Program (JBM). Justices and judges in PERS 1
and 2 may make a one-time irrevocable election to pay increased contributions that would fund
a retirement benefit with a 3.5% multiplier. The benefit would be capped at 75% of AFC.
Judges in PERS Plan 3 can elect a 1.6% of pay per year of service benefit, capped at 37.5% of
average compensation.
Members who choose to participate in JBM will accrue service credit at a higher multiplier
beginning with the date of their election, be subject to the benefit cap of 75% of AFC, pay
higher contributions, stop contributing to the Judicial Retirement Account (JRA), and be given
the option to increase the multiplier on past judicial service. Members who do not choose to
participate will: continue to accrue service credit at the regular multiplier; continue to
participate in JRA, if applicable; never be a participant in the JBM Program; and continue to pay
contributions at the regular PERS rate.
Newly elected or appointed justices and judges who chose to become PERS members on or
after January 1, 2007, or who have not previously opted into PERS membership, were required
to participate in the JBM Program. Members required into the JBM program would: return to
prior PERS Plan if membership had previously been established; be mandated into Plan 2 and
not have a Plan 3 transfer choice, if a new PERS member; accrue the higher multiplier for all
judicial service; not contribute to JRA; and not have the option to increase the multiplier for
past judicial service.
Membership in PERS consisted of the following as of the latest actuarial valuation date for the
plans of June 30, 2008:
Retirees and beneficiaries receiving benefits 73,122
Terminated plan members entitled to but not yet receiving benefits 27,267
Active plan members vested 105,212
Active plan members non -vested 56,456
TOTAL 262,057
There are 2,300 participating employers in PERS as of June 30, 2009.
Funding Policy
Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates,
Plan 2 employer and employee contributions rates, and Plan 3 employer contribution rates.
Employee contribution rates for Plan 1 are established by statute at six percent for state
Basic Financial Statements, 4-39
2009 Comprehensive Annual Financial Report City of Renton, Washington
agencies and local government unit employees, and 7.5 percent for state government elected
officials. The employer and employee contribution rates for Plan 2 and the employer
contribution rate for Plan 3 are developed by the Office of the State Actuary to fully fund Plan 2
and the defined benefit portion of Plan 3. All employers are required to contribute at the level
established by the Legislature. Under PERS 3, employer contributions finance the defined
benefit portion of the plan, and member contributions finance the defined contribution
portion. The Employee Retirement Benefits Board sets Plan 3 employee contribution rates. Six
rate options are available ranging from 5 to 15 percent; two of the options are graduated rates
dependent on the employee's age. As a result of the implementation of the Judicial Benefit
Multiplier Program in January 2007, a second tier of employer and employee rates was
developed to fund, along with investment earnings, the increased retirement benefits of those
justices and judges that participate in the program. The methods used to determine the
contribution requirements are established under state statute in accordance with Chapters
41.40 and 41.45 RCW.
The required contribution rates expressed as a percentage of current -year covered payroll, as
of December 31, 2009, were as follows:
Members not participating in JBM:
Contributor PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer* 5.31%** 5.31%** 5.31%***
Employee 6.00%**** 5.39%**** *****
* The employer rates include the employer administrative
expense fee currently at 0.16%.
** The employer rate for state elected officials is 12.39% for
Plan 1 and 8.31% for Plan 2 & 3.
*** Plan 3 defined benefit portion only.
**** The employee rate for state elected officials is 7.5% for Plan
1 and 5.45% for Plan 2.
***** Variable from 5.0% minimum to 15.0% maximum based on
rate selected by the PERS 3 member.
Members participating in JBM:
Contributor PERS Plan 1
PERS Plan 2
PERS Plan 3
Employer -State Agency* 7.81%
7.81%
7.81%**
Employer -Local Govt.* 5.31%
5.31%
5.31%**
Employee -State Agency 9.76%
7.25%
7.50%***
Employee -Local Govt. 12.26%
9.75%
7.50%***
* The employer rates include the employer
administrative
expense fee currently at .16%.
** Plan 3 defined benefit portion only.
*** Minimum rate.
Basic Financial Statements, 4-40
2009 Comprehensive Annual Financial Report City of Renton, Washington
Both the City and the employees made the required contributions. The City's required
contributions for years ended December 31, were as follows:
Year
PERS Plan 1
PERS Plan 2
PERS Plan 3
2009
$71,860
$1,826,401
$312,631
2008
75,956
1,692,603
287,302
2007
85,411
1,229,641
196,584
Law Enforcement Officers' and Firefighters' Retirement System (LEOFF) Plans 1 and 2
Plan Description
LEOFF is a cost-sharing multiple -employer retirement system comprised of two separate
defined benefit plans. LEOFF participants who joined the system by September 30, 1977, are
Plan 1 members. Those who joined on or after October 1, 1977, are Plan 2 members.
Membership in the system includes all full-time, fully compensated; local law enforcement
officers, firefighters and as of July 24, 2005, those emergency medical technicians who were
given the option and chose LEOFF Plan 2 membership. LEOFF membership is comprised
primarily of non -state employees, with the Department of Fish and Wildlife enforcement
officers, who were first included prospectively effective July 27, 2003, being an exception.
Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established by Initiative 790 to
provide governance of LEOFF Plan 2. The Board's duties include adopting contribution rates
and recommending policy changes to the Legislature for the LEOFF Plan 2 retirement plan.
LEOFF defined benefit retirement benefits are financed from a combination of investment
earnings, employer and employee contributions, and a special funding situation in which the
state pays through state legislative appropriations. LEOFF retirement benefit provisions are
established in state statute and may be amended by the State Legislature.
LEOFF Plan 1 members are vested after the completion of five years of eligible service. Plan 1
members are eligible for retirement with five years of service at the age of 50. The benefit per
year of service calculated as a percent of final average salary (FAS) is as follows:
Percent of Final
Term of Service Average Salary
20 or more years 2.0%
10 but less than 20 years 1.5%
5 but less than 10 years 1.0%
The FAS is the basic monthly salary received at the time of retirement, provided a member has
held the same position or rank for 12 months preceding the date of retirement. Otherwise, it is
the average of the highest consecutive 24 months' salary within the last ten years of service. A
cost -of -living allowance is granted (indexed to the Consumer Price Index).
Basic Financial Statements, 4-41
2009 Comprehensive Annual Financial Report City of Renton, Washington
LEOFF Plan 2 members are vested after the completion of five years of eligible service. Plan 2
members may retire at the age of 50 with 20 years of service, or at age 53 with five years of
service, with an allowance of two percent of the FAS per year of service. The FAS is based on
the highest consecutive 60 months. Plan 2 members who retire prior to age 53 receive reduced
benefits. Benefits are actuarially reduced for each year that the benefit commences prior to age
53 and to reflect the choice of a survivor option. If the member has at least 20 years of service
credit and is age 50, the reduction is three percent for each year prior to age 53. There is no
cap on years of service credit; and a cost -of -living allowance is granted (indexed to the
Consumer Price Index), capped at three percent annually.
Membership in LEOFF consisted of the following as of the latest actuarial valuation date for the
plans of June 30, 2008:
Retirees and beneficiaries receiving benefits 9,268
Terminated plan members entitled to but not yet receiving benefits 650
Active plan members vested 13,120
Active plan members non -vested 3,927
TOTAL 26,965
There are 451 participating employers in LEOFF as of June 30, 2009.
Funding Policy
Starting on July 1, 2000, LEOFF Plan 1 employers and employees will contribute zero percent as
long as the plan remains fully funded. Employer and employee contribution rates are
developed by the Office of the State Actuary to fully fund the plan. LEOFF Plan 2 employer and
employees are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board. All
employers are required to contribute at the level required by state law. The Legislature, by
means of a special funding arrangement, appropriated money from the state General Fund to
supplement the current service liability and fund the prior service cost of LEOFF Plan 2 in
accordance with the requirements of the Pension Funding Council and the LEOFF Plan 2
Retirement Board. However, this special funding situation is not mandated by the state
constitution and this funding requirement could be returned to the employers by a change in
statute.
The required contribution rates expressed as a percentage of current -year covered payroll, as
of December 31, 2009, were as follows:
Contributor LEOFF Plan 1 LEOFF Plan 2
Employer* .16% 5.24%**
Employee .00% 8.46%
State N/A 3.38%
* The employer rates include the employer administration
expense fee currently at .16%.
** The employer rate for ports and universities is 8.99%.
Basic Financial Statements, 4-42
2009 Comprehensive Annual Financial Report City of Renton, Washington
Both the City and the employees made the required contributions. The City's required
contributions for years ended December 31, were as follows:
Year LEOFF Plan 1 LEOFF Plan 2
2009 $487 $1,258,217
2008 1,348 1,200,963
2007 1,676 891,932
Public Safety Employee's Retirement System (PSERS) Plan 2
Plan Description
PSERS is a cost-sharing multiple -employer retirement system comprised of a single defined
benefit plan, PSERS Plan 2. PSERS was created by the 2004 legislature and became effective
July 1, 2006.
PSERS Plan 2 membership includes full-time employees of a covered employer on or before July
1, 2006, who met at least one of the PSERS eligibility criteria, and elected membership during
the election period of July 1, 2006 to September 30, 2006; and those full-time employees, hired
on or after July 1, 2006 by a covered employer, that meet at least one of the PSERS eligibility
criteria.
A "covered employer" is one that participates in PSERS. Covered employers include: State of
Washington agencies: Department of Corrections, Department of Natural Resources, Parks and
Recreation Commission, Gambling Commission, Washington State Patrol, Liquor Control Board;
Washington state counties; and Washington state cities except for Seattle, Tacoma and
Spokane.
To be eligible for PSERS, an employee must work on a full-time basis and:
• have completed a certified criminal justice training course with authority to arrest,
conduct criminal investigations, enforce that criminal laws of Washington, and carry a
firearm as part of the job; or
• have primary responsibility to ensure the custody and security of incarcerated or
probationary individuals; or
• function as a limited authority Washington peace officer, as defined in RCW 10.93.020;
or
• have primary responsibility to supervise eligible members who meet the above criteria.
PSERS defined benefit retirement benefits are financed from a combination of investment
earnings and employer and employee contributions. PSERS retirement benefit provisions are
established in state statue and may be amended only by the State Legislature.
PSERS Plan 2 members are vested after the completion of five years of eligible service. Plan 2
members may retire at the age of 65 with five years of service, or at the age of 60 with at least
ten years of PSERS service credit, with an allowance of two percent of the average final
Basic Financial Statements, 4-43
2009 Comprehensive Annual Financial Report City of Renton, Washington
compensation (AFC) per year of service. The AFC is the monthly average of the member's 60
consecutive highest-paid service credit months, excluding any severance pay such as lump -sum
payments for deferred sick leave, vacation or annual leave. Plan 2 retirees who retire prior to
the age of 60 receive reduced benefits. If retirement is at age 53 or older with at least 20 years
of service, a three percent per year reduction for each year between the age at retirement and
age 60 applies. There is no cap on years of service credit; and a cost -of -living allowance is
granted (based on the Consumer Price Index), capped at three percent annually.
Membership is PSERS consisted of the following as of the latest actuarial valuation date for the
plan of June 30, 2008:
Retirees and beneficiaries receiving benefits 1
Terminated plan members entitled to but not yet receiving benefits 0
Active plan members vested 0
Active plan members non -vested 3,981
TOTAL 3,982
There are 73 participating employers in PSERS as of June 30, 2009.
Funding Policy
Each biennium, the state Pension Funding Council adopts PSERS Plan 2 employer and employee
contribution rates. The employer and employee contribution rates for Plan 2 are developed by
the Office of the State Actuary to fully fund Plan 2. All employers are required to contribute at
the level established by the Legislature. The methods used to determine the contribution
requirements are established under state statute in accordance with Chapters 41.37 and 41.45
RCW.
The required contribution rates expressed as a percentage of current year covered payroll, as of
December 31, 2009 were as follows:
Contributor PSERS Plan 2
Employer* 7.85%
Employee 6.55%
*The employer rates include the employer administrative
expense fee currently at .16%.
Both the City and the employees made the required contributions. The City's required
contributions for years ended December 31, were as follows:
Year PSERS Plan 2
2009 $73,255
2008 63,747
2007 41,424
Basic Financial Statements, 4-44
2009 Comprehensive Annual Financial Report City of Renton, Washington
Firefighter's Pension
Plan Description
The Firefighter's Pension Plan is a closed, single -employer, defined benefit pension plan
established in accordance with RCW 41.18 and Renton Municipal Code. This plan provides
retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan
members and beneficiaries. This system was established for firefighters employed prior to
March 1, 1970, when the LEOFF retirement system was established. The retirement benefits
vest after 20 years of service. Members may retire after 25 years of service regardless of age,
and after age 50 with 20 or more years of service. At December 31, 2009, there were 38
members in the System:
Retirees and beneficiaries receiving benefits 36
Retirees and beneficiaries currently receiving full retirement through LEOFF 2
Active plan members vested 0
Active plan members non -vested 0
TOTAL 38
Funding Policy
Under state law, the Firefighter's Pension Plan is provided an allocation of all monies received
by the state from taxes on fire insurance premiums; interest earnings; member contributions
made prior to the inception of LEOFF; and City contributions required to meet projected future
pension obligations. Costs of administering the Firefighter's Pension Plan are paid by the Plan.
For 2009, this cost was $23,461.
An actuarial valuation is done every two years and was completed as of January 1, 2009. The
Actuarial Valuation of Firefighters' Pension Fund table is reported in the Required Supplemental
Information section, and a recap of the Schedule of Funding Progress for the last five valuations
is as follows:
Basic Financial Statements, 4-45
Unfunded
Actuarial
Actuarial
Actuarial
Accrued
Accrued
Value of
Liabilities
Liabilities
Covered
UAAL as
Valuation
Assets
Entry Age
(UAAL)
Payroll
a % of
Date
(rounded to
(rounded to
(rounded to
Funded
(rounded to
Covered
January 1
thousands)
thousands)
thousands)
Ratio
thousands)
Payroll
2001
7,067
6,780
(287)
104%
0
2003
9,189
6,472
(2,717)
142%
0
2005
7,777
6,254
*(1,523)
124%
0
2007
7,847
6,364
(1,483)
123%
0
2009
8,941
6,517
(2,424)
137%
0
n/a
* A $29 decrease in the actuarial accrued liabilities was made after the City's financial report was published and
before the valuation was released.
Basic Financial Statements, 4-45
2009 Comprehensive Annual Financial Report
City of Renton, Washington
Significant actuarial assumptions used in the January 1, 2009, valuation include:
Valuation date: January 1, 2009
Actuarial cost method: entry age normal
Amortization method: 30 -year, closed as of January 1, 2000
Remaining amortization period: 21 years
Asset valuation method: fair value
Actuarial assumptions: 1) investment rate of return - 4%; 2) projected salary increases - 3.5%;
3) inflation - 2.5%; and, 4) cost -of -living adjustments - based upon salary increase assumption
for FPF benefits, inflation assumption for LEOFF benefits.
The Annual Required Contribution (ARC) was computed using the Entry Age Normal Cost
Method. Under this method the projected benefits are allocated on a level basis as a
percentage of salary over the earnings of each individual between entry age and assumed exit
age. The amount allocated to each year is called the Normal Cost and the portion of the
Actuarial Present Value of all benefits not provided for by future Normal Cost payments is
called the Actuarial Accrued Liability. Since all members have already retired, the amount of
the Normal Cost is zero. The Unfunded Actuarial Accrued Liability (UAAL) is the Actuarial
Accrued Liability minus the actuarial value of the Fund's assets.
The following Annual Pension Cost and Net Pension Obligation table presents the annual
Normal Cost and the ARC as of January 1, 2009, assuming the UAAL is amortized over a closed
30 -year period beginning January 1, 2000.
Interest on NPO (38,658) (46,349) (43,291)
Adjustment to ARC (54,591) (67,070) (74,178)
Annual pension cost (APC) (94,035) (89,247) (141,901)
Employer contributions**
Fiscal Year
Fiscal Year
Fiscal Year
Change in NPO
Ending
Ending
Ending
Annual required contribution (ARC)
12/31/2007
12/31/2008
12/31/2009
Annual normal cost (BOY)
$0
$0
$0
Amortization of UAAL (BOY)
(104,731)
(104,731)
(166,142)
Interest to end of year (EOY)*
(5,237)
(5,237)
(6,646)
ARC at EOY
(109,968)
(109,968)
(172,788)
Interest on NPO (38,658) (46,349) (43,291)
Adjustment to ARC (54,591) (67,070) (74,178)
Annual pension cost (APC) (94,035) (89,247) (141,901)
Employer contributions**
59,777
66,055
70,327
Change in NPO
(153,812)
(155,302)
(212,228)
NPO at BOY prior year
(773,166)
(926,978)
(1,082,280)
NPO at EOY
($926,978)
($1,082,280)
($1,294,508)
* Assumed interest rate: 5.0% in 2007and 2008, 4.0% in 2009.
** Employer contributions are total contributions to the fund net of disbursements for medical
and administrative expenses.
Basic Financial Statements, 4-46
2009 Comprehensive Annual Financial Report City of Renton, Washington
The Annual Development of Pension Cost is recapped as follows:
Fiscal Year
NPO
Balance
(Gain)/
Loss
Amort.
Factor"
Annual
Total
Change
Ending
ARC @
Interest on
ARC
Pension
Employer
in
12/31
EOY
NPO
Adjustment
Cost (APC)
Contributions
NPO
2004
($205,680)
($10,790)
($13,047)
($203,423)
$63,151
($266,574)
2005
(113,541)
(24,553)
(31,545)
(106,549)
58,029
(164,578)
2006
(113,541)
(33,604)
(44,035)
(103,110)
59,068
(162,178)
2007
(109,968)
(38,658)
(54,591)
(94,035)
59,777
(153,812)
2008
(109,968)
(46,349)
(67,070)
(89,247)
66,055
(155,302)
2009
(172,788)
(43,291)
(74,178)
(141,901)
70,327
(212,228)
Fiscal Year
Ending
December 31
NPO
Balance
(Gain)/
Loss
Amort.
Factor"
Amort.
of (Gain)/
Loss
Ending
Balance
2004
($446,410)
($268,831)
13.7834
($13,047)
($446,410)
2005
(610,988)
(171,570)
14.1517
(31,545)
(610,988)
2006
(733,166)
(172,609)
13.8750
(44,035)
(773,166)
2007
(926,978)
(169,745)
14.1630
(54,591)
(926,978)
2008
(1,082,280)
(176,023)
13.8212
(67,070)
(1,082,280)
2009
(1,294,508)
(243,115)
14.5903
(74,178)
(1,294,508)
Three year trend information is recapped as follows:
Employees are not required to make contributions. The contributions to the System for 2009
include $106,623 from fire insurance premiums and $359,381 of investment income. Benefits
and refunds of the defined benefit pension plan are recognized when due and payable in
accordance with the terms of the plan. For 2009, $443,618 was paid for benefit payments and
$12,835 for medical payments.
The Net Pension Obligation moves from ($1,082,280) to ($1,294,508) and is included, as a non-
current asset, in the City of Renton's Governmental -wide Statement of Net Assets.
NOTE 7. OTHER POST EMPLOYMENT BENEFITS
Plan Description
In accordance with the Revised Code of Washington (RCW) Chapter 41.26, the City provides
lifetime medical care for members of the Law Enforcement Officers and Firefighters (LEOFF)
retirement system hired prior to October 1, 1977 under a single -employer defined benefit
healthcare plan administered by the City.
Basic Financial Statements, 4-47
Contribution
Annual
as a
Net Pension
Fiscal Year Ending
Pension Cost
Percentage of
Obligation
December 31
(APC)
APC
(NPO)
2007
($94,035)
N/A
($926,978)
2008
(89,247)
N/A
(1,082,280)
2009
(141,901)
N/A
(1,294,508)
Employees are not required to make contributions. The contributions to the System for 2009
include $106,623 from fire insurance premiums and $359,381 of investment income. Benefits
and refunds of the defined benefit pension plan are recognized when due and payable in
accordance with the terms of the plan. For 2009, $443,618 was paid for benefit payments and
$12,835 for medical payments.
The Net Pension Obligation moves from ($1,082,280) to ($1,294,508) and is included, as a non-
current asset, in the City of Renton's Governmental -wide Statement of Net Assets.
NOTE 7. OTHER POST EMPLOYMENT BENEFITS
Plan Description
In accordance with the Revised Code of Washington (RCW) Chapter 41.26, the City provides
lifetime medical care for members of the Law Enforcement Officers and Firefighters (LEOFF)
retirement system hired prior to October 1, 1977 under a single -employer defined benefit
healthcare plan administered by the City.
Basic Financial Statements, 4-47
2009 Comprehensive Annual Financial Report City of Renton, Washington
The City is required to pay all healthcare expenses incurred by LEOFF 1 retirees. The City's cost
is reduced by any amounts retirees receive from Medicare or other health plans. LEOFF 1
retirees may request reimbursement for healthcare expenses that are not paid by their primary
healthcare plan. The City pays the Medicare Part B premium. In addition, LEOFF 1 retirees are
eligible for long term care, dental and vision benefits and coverage continues throughout the
lifetime of the retiree.
Under the authorization of the LEOFF Disability Board, direct payment is made for other retiree
medical expenses not covered by standard medical plan benefit provisions. Coverage continues
throughout the lifetime of the retiree. Financial reporting for the LEOFF retiree healthcare plan
is included in the City's Comprehensive Annual Financial Report. The plan does not issue stand-
alone financial statements. An actuarial valuation financial report is prepared by Nicolay
Consulting, and may be obtained by contacting the City of Renton, Finance Division, 1055 South
Grady Way, Renton, WA 98057.
As of December 31, 2009, there were 98 retirees and 3 active employees who have not retired.
Funding Policy
Funding for LEOFF retiree healthcare costs is provided entirely by the City as required by RCW.
The City's funding policy is based upon pay-as-you-go financing requirements. The plan
member is not required to contribute to the cost of the plan.
Annual OPEB Cost and Net OPEB Obligation
The City's annual other postemployment benefit (OPEB) cost is calculated based on the annual
required contribution (ARC), an amount actuarially determined in accordance with the
parameters of GASB Statement 45.
The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the
normal cost each year and amortize any unfunded actuarial liabilities over a period not to
exceed thirty years. The following table shows the components of the City's annual OPEB cost
for the year, the amount actually contributed to the plan, and changes in the City's net OPEB.
Basic Financial Statements, 4-48
2009 Comprehensive Annual Financial Report
City of Renton, Washington
Fiscal Year Ending
12/31/2009
Determination of Required Annual Contribution:
Normal Cost $20,000
Amortization of UAAL* 1,903,621
Annual Required Contribution (ARC) 1,923,621
Determination of Net OPEB Obligation:
Annual Required Contribution (ARC)
1,923,621
Interest on net OPEB Obligation
24,311
Adjustment to ARC
(35,785)
Annual OPEB Cost
1,912,147
Contributions Made
(1,104,351)
Increase in net OPEB Obligation
807,796
Net OPEB Obligation — Beginning of Year
757,876
Net OPEB Obligation — End of Year
$1,565,672
*Unfunded Actuarial Accrued Liability (UAAL)
The net OPEB obligation of $1,565,672 is included as a noncurrent liability on the Statement of
Net Assets.
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and
the net OPEB obligation for 2009 and 2008 are as follows:
Percentage of
Annual OPEB Employer OPEB Cost Net OPEB
Cost Contribution Contributed Obligation
2009 $1,912,147 $1,104,351 57.75% $807,796
2008 2,024,068 1,266,192 62.56% 757,876
Data prior to 2008 was not required under GASB Statement 45.
Funded Status and Funding Progress
As of January 1, 2008, the most recent actuarial valuation date, the plan was 0% funded. The
accrued liability for benefits was $32,331,107 and the actuarial value of the assets was $0
resulting in a UAAL of $32,331,107.
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and the plan members) and include the types of benefits
provided at the time of each valuation. Employer contributions are financed on a pay-as-you-go
basis. During the fiscal year ended December 31, 2009, expenses of $1,104,351 were
recognized for post-retirement health care. Although expenses are used in the calculation of
the Net OPEB Obligation, it should be noted that the City has earmarked the difference
Basic Financial Statements, 4-49
2009 Comprehensive Annual Financial Report City of Renton, Washington
between revenues and expenses of $577,382 and $946,326 in 2008 and 2009 respectively for
future costs of the plan.
The schedule of funding progress, presented as required supplementary information following
the notes to the financial statements, presents the results of the OPEB valuations as of
December 31, 2009. In future years, the schedule of funding progress will provide multi-year
trend information that shows whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial liabilities for benefits
Actuarial Methods and Assumptions
Nicolay Consulting prepared for the City an actuarial valuation report dated January 1, 2008.
The actuarial methods and assumptions used include techniques that are designed to reduce
the effects of short-term volatility in actuarial accrued liabilities, consistent with the long-term
perspective of the calculations.
The actuarial valuation report was prepared using the projected unit credit method. The
projected unit credit method is an actuarial cost method under which the projected benefits of
each individual included in an Actuarial Valuation are separately calculated and allocated to
each year of service by a consistent formula.
The actuarial assumptions used included a 4.00% discount rate, which is based upon the long-
term investment yield on the investments that are expected to be used to finance payment of
benefits. Additionally, the following health care trend rate assumptions were used:
Expected Annual Increase in Health Care Cost
Medicare Nursing Dental
Medical -Part B Home and Vision
Initial 8.50% 0.00% 4.00% 2.00%
Ultimate 5.50% 5.50% 4.00% 2.00%
The UAAL is being amortized based on a level dollar amortization over a closed 30 year -period
at the assumed discount rate. The remaining amortization period at December 31, 2009 was 28
years.
NOTE 8. CONTINGENCIES
Litigation
The City has recorded in its financial statements all material liabilities, including an estimate for
situations that are not yet resolved but where, based on available information, management
believes it is probable that the City will have to make payment. In the opinion of management,
the City's insurance policies and/or self-insurance reserves are adequate to pay all known or
pending claims.
Basic Financial Statements, 4-50
2009 Comprehensive Annual Financial Report City of Renton, Washington
Contingencies under Grant Provisions
The City participates in a number of federal and state assisted programs. These grants are
subject to audit by the grantors of their representatives. Such audits could result in requests
for reimbursement to grantor agencies for expenditures disallowed under the terms of the
grants. The City's management believes that such disallowances, if any, will be immaterial.
Bond Indentures
The City is in compliance with all significant bond indenture and restrictions, with the following
exception. Golf Course net revenues in 2008 and 2009 were severely impacted by inclement
weather and general economic conditions, causing it to be temporarily out of compliance with
the bond debt service coverage covenant of 125% of annual debt service at the end of 2008 and
2009. The City continues to review rates and the business plan and strategy that aims to adjust
and maintain coverage.
Leases
The City leases a temporary Parks Maintenance facility. Total cost for this lease was $100,996
for the year ended December 31, 2009. The lease term ends December 31, 2010, however, the
City may extend the lease for two (2) additional periods of one (1) year each beginning January
1, 2011. The future minimum lease payments for the final year of the lease (2010) are
$105,404.
The City also leases office facilities for the City Attorney's office. Total cost for this lease was
$90,000 for the year ended December 31, 2009. The lease term ends December 31, 2011,
however, the City may extend the lease for one (1) additional year. The future minimum lease
payments for 2010 and 2011 are $90,000 per year.
Construction Commitments
Refer to Note 5.
NOTE 9. RISK MANAGEMENT
The City of Renton is exposed to various risks of loss related to tort; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters. The
City of Renton protects itself against unforeseen losses by utilizing a three -pronged risk
management approach. First, the City self -funds first level losses through its Insurance Fund.
Second, excess insurance is purchased to cover medium and large losses. Third, the City
reserves the right to utilize the provisions of Chapter 35A.31.060 RCW to fund catastrophic or
uninsured losses. This State statute allows cities to levy a non -voted property tax increase to
pay for uninsured claims. An analysis of the self-insurance retention levels, limits of insurance,
and claims administrator for the major types of coverage are as follows:
Basic Financial Statements, 4-51
2009 Comprehensive Annual Financial Report
City of Renton, Washington
Airport liability — Expires
Risk
100,000,000
Ace Property &
1/1/2010
Retention
Casualty
Type of Coverage
Occurrence
Aggregate Amount
Carrier
Property — Expires
$25,000
$500,000,000 (per
WA Cities Ins
01/01/2010
350,000
occurrence subject to
Authority
Expires 1/1/2010
annual aggregate &
Excess Employee health —
150,000
sub -limits)
SunLife
Liability— Expires
250,000
20,000,000
WA Cities Ins
01/01/2010
(per occurrence)
Authority
Auto Liability — Expires
25,000
ACV or Replacement
WA Cities Ins
01/01/2010
Cost; per Occurrence
Authority
Public Officials (E&0) —
250,000
15,000,000
WA Cities Ins
Expires 01/01/2010
Authority
Equipment breakdown —
5,000*
50,000,000
Zurich
Expires 1/1/2010
Crime—Expires 12/31/2009
10,000
2,500,000
National Union
Fire
Airport liability — Expires
0
100,000,000
Ace Property &
1/1/2010
Casualty
Underground storage tank—
25,000
2,000,000
Commerce &
Expires 1/1/2010
Industry
Excess Worker's comp —
350,000
1,000,000
Midwest Casualty
Expires 1/1/2010
Excess Employee health —
150,000
N/A
SunLife
Expires 1/1/2010
* There is a 4 -hour utility interruption clause, prior to the deductible becoming applicable
For policy term January 1, 2009 to January 1, 2010, there were no reductions in insurance
coverage and an increase in premiums; however, settlements for the last three years have not
exceeded insurance coverage.
The City of Renton is a member of the Washington Cities Insurance Authority (WCIA).
Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal
Cooperation Act), nine cities originally formed WCIA on January 1, 1981. WCIA was created for
the purpose of providing a pooling mechanism for jointly purchasing insurance, jointly self-
insuring, and/or jointly contracting for risk management services. WCIA has a total of 126
members.
New members initially contract for a three-year term and thereafter automatically renew on an
annual basis. A one-year withdrawal notice is required before membership can be terminated.
Termination does not relieve a former member from its unresolved loss history incurred during
membership.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes
general, automobile, police, public officials' errors or omissions, stop gap, and employee
benefits liability. Limits are $3 million per occurrence self insured layer, and $12 million per
occurrence in the re -insured excess layer. The excess layer is insured by the purchase of
Basic Financial Statements, 4-52
2009 Comprehensive Annual Financial Report
City of Renton, Washington
reinsurance and insurance and is subject to aggregate limits. Total limits are $15 million per
occurrence subject to aggregate sublimits in the excess layers. The Board of Directors
determines the limits and terms of coverage annually.
Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler
and machinery are purchased on a group basis. Various deductibles apply by type of coverage.
Property insurance and auto physical damage are self-funded from the members' deductible to
$500,000 for all perils other than flood and earthquake, and insured above that amount by the
purchase of reinsurance.
In-house services include risk management consultation, loss control field services, claims and
litigation administration, and loss analyses. WCIA contracts for the claims investigation
consultants for personnel issues and land use problems, insurance brokerage and lobbyist
services.
WCIA is fully funded by its members, who make annual assessments on a prospectively rated
basis, as determined by an outside, independent actuary. The assessment covers loss, loss
adjustment, and administrative expenses. As outlined in the interlocal agreement, WCIA retains
the right to additionally assess the membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by
investment of WCIA's assets in financial instruments, which comply with all State guidelines.
These revenues directly offset portions of the membership's annual assessment.
A Board of Directors governs WCIA, which is comprised of one designated representative from
each member. The Board elects an Executive Committee and appoints a Treasurer to provide
general policy direction for the organization. The WCIA Executive Director reports to the
Executive Committee and is responsible for conducting the day-to-day operations of WCIA.
The City's Risk Management Program is administered by the Human Resources and Risk
Management Administrator, with claims being processed by the independent claims
administrators noted above. As of December 31, 2009, the City had accrued the following
amounts for outstanding claims:
Total Claims
Coverage Payable 12/31/2009
Property & liability $332,713
Worker's compensation 830,652
Employee health 1,835,494
TOTAL $2,998,859
Basic Financial Statements, 4-53
2009 Comprehensive Annual Financial Report
City of Renton, Washington
2008
Property & Worker's Employee
Liability Compensation Health Totals
IBNR claims at beginning of the year
Property &
Worker's
Employee
$2,985,955
2009
Liability
Compensation
Health
Totals
IBNR claims at beginning of the year
$591,052
$590,708
$1,744,915
$2,926,675
Current year and changes in estimates
1,091,855
1,396,542
9,697,684
12,186,081
Claims payments
(1,350,194)
(1,156,598)
(9,607,105)
(12,113,897)
IBNR claims at end of the year
$332,713
$830,652
$1,835,494
$2,998,859
2008
Property & Worker's Employee
Liability Compensation Health Totals
IBNR claims at beginning of the year
$792,487
$794,043
$1,399,425
$2,985,955
Current year and changes in estimates
764,281
(139,458)
9,297,803
9,922,626
Claims payments
(965,716)
(63,877)
(8,952,313)
(9,981,906)
IBNR claims at end of the year
$591,052
$590,708
$1,744,915
$2,926,675
NOTE 10. INTERFUND TRANSACTIONS
Interfund transactions are classified as follows:
1. Services Provided — Transactions that would be treated as revenues, expenditures, or
expenses if they involve external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City
of Renton.
2. Transfers — Transactions to support the operations of other funds are recorded as
"Transfers" and classified with "Other Financing Sources or Uses" in the fund
statements. Transfers between governmental or proprietary funds are netted as part of
the reconciliation to the Government -wide financial statements.
3. Contributions — Contributions to the capital of enterprise or internal service funds,
transfers of capital assets between proprietary and governmental funds, transfers to
establish or reduce working capital in other funds, and transfers remaining balances
when funds are closed are classified non-operating revenue.
4. Loans/Advances — Loans between funds are classified as interfund loans receivable and
payable or as advances to and from other funds in the fund statements. Interfund loans
do not affect total fund equity, but advances to other funds are offset by a reservation
of fund equity. Loans and advances are subject to elimination upon consolidation.
Basic Financial Statements, 4-54
2009 Comprehensive Annual Financial Report
City of Renton, Washington
The following is a recap of interfund balances for 2009 at the fund level for the purpose of
reclassifying revenue/expenditures between funds:
Fund
Due From
Other Funds
Due To
Other Funds
General
$ 332,087
$ -
General
-
200,999
Arterial street
1,224
-
Leased City Properties
-
1,224
Special Hotel/Motel Tax
36,537
-
1997 LTGO Debt Service Fund
163,067
Municipal Facilities CIP
9,066
Waterworks
1,395
-
Equipment Rental
-
333,915
Insurance
-
7,238
TOTAL
$ 543,376
$ 543,376
At the government wide level, only one interfund balance occurred for the purpose of
reclassifying revenue/expenditures between activities:
The following is a recap of interfund loans for 2009 at the fund level for capital improvement
purposes:
Due From
Due To
Fund
Other Funds
Other Funds
Waterworks
$ 1,395
$ -
General Fund
-
1,395
TOTAL
I $ 1,395
$ 1,395
The following is a recap of interfund loans for 2009 at the fund level for capital improvement
purposes:
There were no interfund loans between governmental and business -type activities.
Basic Financial Statements, 4-55
Interfund Loans
Interfund Loans
Fund
Receivable
Payable
Airport
$ -
$ 475,000
Waterworks
475,000
TOTAL
$ 475,000
$ 475,000
There were no interfund loans between governmental and business -type activities.
Basic Financial Statements, 4-55
2009 Comprehensive Annual Financial Report
The following is a recap of interfund transfers for 2009 at the fund level:
City of Renton, Washington
Fund
Transfer
In
Transfer
Out
Purpose
General
$ 277,004
$ -
Various Contributions for Operating Programs
General
-
1,392,069
Various Contributions related to Capital and Fire Pension
Arterial street
100,000
750,000
Contribution for Capital Improvements
Leased City Properties
-
570,790
Contributions for Operating and Capital purposes
One Percent for Art
23,539
-
Contributions from Capital Funds
General debt
300,000
Contribution from Impact Mitigation Funds
Community Services Impact Mitigation
5,696
Contribution from General Fund
Community Services Impact Mitigation
-
711,038
Contribution for Capital Improvements
Fire Impact Mitigation
-
300,000
Contribution for Debt Service
Transportation Impact Mitigation
173,102
-
Contributions for Capital Improvements
Transportation Impact Mitigation
-
1,673,102
Contribution for Capital Improvements
Municipal Facilities CIP
2,292,828
-
Contributions for Capital Improvements
Municipal Facilities CIP
-
5,025,462
Contribution for Capital Improvements
Capital Improvement
2,310,000
-
Contributions for Capital Improvements
Capital Improvement
-
21,399
Contribution to One Percent for Art Fund
South Lake WA Infrastructure CIP
9,677,480
-
Contributions for Capital Improvements
South Lake WA Infrastructure CIP
-
2,140
Contribution for One Percent for Art Fund
Waterworks
100,000
-
Contribution for Capital Improvements
Equipment Rental
199,728
-
Contributions for Capital Equipment
Equipment Rental
-
20,000
Contribution for Operating Programs
Insurance
-
5,000,000
Contribution for Capital Improvements
Firemen's Pension
106,623
-
Contribution from General Fund for Fire Ins Premium Tax
TOTAL
1 $ 15,465,9991
$ 15,465,999
At the government wide level, only one transfer occurred as follows:
NOTE 11. NET ASSETS
The Government -wide and business type fund financial statements utilize a net asset
presentation. Net assets are the difference between assets and liabilities. Net assets are
categorized as investments in capital assets (net of related debt), restricted, and unrestricted.
A. Investment in Capital Assets (net of related debt) is intended to reflect the portion of net
assets that are associated with non -liquid, capital assets less outstanding capital asset
related debt.
The net related debt is the debt less the outstanding liquid assets and any associated
unamortized costs.
Basic Financial Statements, 4-56
Transfer
Transfer
Fund
In
Out
Purpose
Municipal Facilities CIP
$ -
$ 100,000
Contribution for Capital Improvements
Waterworks
100,000
-
Contribution for Capital Improvements
TOTAL
$ 100,000
$ 100,000
NOTE 11. NET ASSETS
The Government -wide and business type fund financial statements utilize a net asset
presentation. Net assets are the difference between assets and liabilities. Net assets are
categorized as investments in capital assets (net of related debt), restricted, and unrestricted.
A. Investment in Capital Assets (net of related debt) is intended to reflect the portion of net
assets that are associated with non -liquid, capital assets less outstanding capital asset
related debt.
The net related debt is the debt less the outstanding liquid assets and any associated
unamortized costs.
Basic Financial Statements, 4-56
2009 Comprehensive Annual Financial Report
City of Renton, Washington
B. Restricted net assets are liquid assets (generated from revenues and not bond proceeds),
which have third party (statutory, bond covenant, or granting agency) limitations on their
use. The City would typically use restricted net assets first, as appropriated opportunities
arise, but reserve the right to selectively defer the use thereof to a future project or
replacement equipment acquisition.
Restricted net assets are as follows:
Fund
Purpose
Amount
Arterial Street
Road construction
$401,788
Leased City Properties
Leased to outside source
736,873
Hotel / Motel Tax
Tourism
271,729
Paths and Trails
Acquire and maintain city trails
3,264
1% for Art
Funding for art projects
143,796
Cable Communications
Cable development
89,392
Springbrook Wetlands Bank
Accounting for wetlands management
459,528
General Debt
Debt service reserves
288,278
1989 Unlimited GO Bond
Debt service reserves
79,374
Community Development Impact
Mitigation for park development
1,066,593
Fire Impact
Mitigation for fire improvements
2,363,522
Transportation Impact
Mitigation for transportation projects
2,167,134
Municipal Facilities CIP
Capital projects
7,426,982
Capital Improvement
General governmental capital projects
5,270,532
South Lake Washington
Construction infrastructure for SLW
114,039
Golf Course
Debt service reserves
441,358
Waterworks
Debt service reserves
3,588,179
TOTAL $24,912,361
C. Unrestricted net assets represent unrestricted liquid assets. The City's management may
have plans or tentative commitments to expend resources for certain purposes in future
periods. Further legal action will be required to authorize the actual expenses or
expenditures.
NOTE 12. PRIOR PERIOD ADJUSTMENTS
Governmental Activities
Capital assets totaling $32,165 were purchased in 2008 but were not properly capitalized. A
prior period adjustment is necessary in 2009 to properly record these capital assets. In
addition, a prior period adjustment for ($1,044,890) is necessary to increase accumulated
depreciation for several assets that were not properly depreciated in 2008. Finally, a prior
period adjustment for $1,428,000 is necessary to properly account for the City's investment in
joint venture for Valley Communications Center.
Basic Financial Statements, 4-57
2009 Comprehensive Annual Financial Report City of Renton, Washington
Business -Type Activities
Capital Contributions in 2008 in the amount of $914,235 were not properly recorded as such
and the related asset was not recorded at the full amount. A prior period adjustment is
necessary in 2009 to properly record these capital assets. In addition, a prior period
adjustment for ($128,754) is necessary to increase accumulated depreciation for two (2) assets
that were not properly depreciated in 2008.
NOTE 13. LONGTERM DEBT
The City of Renton's long-term debt consists of General Obligation Debt, repaid mainly from
general governmental revenue sources, Proprietary Debt, repaid from proprietary revenues and
compensated absences/other post employment benefits. These debts are accounted for in the
following areas: 1) The outstanding general obligation debt is reported in the Government -
wide financial statements; 2) The repayment, or debt service of the same, is recorded in the
Debt Service Funds; and, 3) The proprietary debt liability and repayment of the same are
reported in individual Proprietary Funds. Compensated absences and other post employment
benefits are generally liquidated mainly from the general fund and to a lesser extent, the
internal service funds.
Basic Financial Statements, 4-58
2009 Comprehensive Annual Financial Report
Outstanding debt issues as of December 21, 2009 are as follows:
City of Renton, Washington
Type of Debt
Interest Rates
Issued
Maturity
Original Issued
Date
Date
Amount
GOVERNMENTAL DEBT:
General Obligation Bonds:
Limited:
1997 GO Bonds
5.55%-5.75%
05/01/1997
12/01/2017
$2,037,744
2001 GO Refunding Bonds
2.10%-5.25%
11/01/2001
12/01/2017
13,505,000
2001 GO Bonds
5.0%-5.25%
11/01/2001
12/01/2021
6,000,000
2002 GO Bonds
2.50%-5.00%
07/15/2002
12/01/2022
3,895,000
2006 GO Bonds
4.25%-5.00%
08/08/2006
12/01/2028
17,980,000
SUBTOTAL LIMITED GO
43,417,744
Unlimited:
1993 GO Refunding Bonds - Senior Housing
5.20%-6.10%
09/01/1993
02/01/2009
4,270,000
SUBTOTAL UNLIMITED GO
4,270,000
Other Miscellaneous debt - Intergovernmental,
Backed by full faith and credit of the City:
2000 GO Valley Comm Bonds
4.30%-5.38%
09/15/2000
12/01/2015
2,551,600
2009 FD 40 Loan for acquisition of FS13
3.75%
03/01/2009
09/01/2028
6,798,085
2009 (A) SCORE Tax Exempt
4.00%-5.00%
11/04/2009
01/01/2022
2,953,800
2009 (B) SCORE BABS
3.00%-6.62%
11/04/2009
01/01/2039
28,090,800
SUBTOTAL MISCELLANEOUS
40,394,285
TOTAL GOVERNMENTAL -TYPE DEBT ISSUANCE
88,082,029
BUSINESS -TYPE DEBT:
Revenue Bonds:
1998 Water/Sewer Refunding
4.46%
03/01/1998
06/01/2013
6,120,000
1999 Golf System Refunding
4.96%
04/01/1999
12/01/2015
5,040,000
2002 Water/Sewer
4.80%
07/01/2002
12/01/2022
11,980,000
2003 Water/Sewer Refunding
3.20%
09/15/2003
06/01/2013
8,035,000
2004 Water/Sewer
4.33%
11/01/2004
12/01/2027
10,335,000
2007 Water/Sewer
4.00%-5.00%
11/06/2007
12/01/2022
1,430,000
2007 Water/Sewer Refunding
4.00%-5.00%
11/06/2007
12/01/2022
8,320,000
2008 Water/Sewer Revenue (a)
4.17%
01/04/2008
12/01/2027
9,975,000
2008 Water/Sewer Revenue (b)
4.17%
01/04/2008
12/01/2016
2,035,000
TOTAL REVENUE BONDS
63,270,000
Public Works Trust Fund Loans:
Sierra Heights Sewer Improvements
2.00%
01/20/1992
07/01/2012
888,462
Central Renton Sewer Replacement
1.00%
05/04/1993
07/01/2015
1,631,800
East Renton Interceptor
1.00%
06/07/1993
07/01/2013
2,542,704
Dayton Avenue NE
2.00%
05/12/1994
07/01/2014
96,958
NE 27`h/Aberdeen Drainage Improvements
1.00%
05/15/1995
07/01/2015
731,000
East Kennydale Interceptor
2.00%
01/24/1998
07/01/2016
2,093,740
Honeycreek Interceptor
2.00%
12/04/1995
07/01/2016
1,840,568
Corrosion Control Treatment Facilities
1.00%
01/06/1997
07/01/2017
1,106,000
Maplewood Water Treatment Improvement
0.50%
01/22/2002
07/01/2021
567,831
Construct CT Pipeline for Wells
0.50%
11/05/2002
07/01/2022
814,527
Maplewood Water Treatment Improvement
0.50%
06/03/2004
07/01/2024
5,150,000
TOTAL PUBLIC WORKS TRUST FUND LOANS
17,463,590
Leases:
Golf Course Operating Lease
5.25%
06/15/2007
05/15/2011
87,800
TOTAL LEASES
87,800
TOTAL BUSINESS -TYPE DEBT ISSUANCE
80,821,390
TOTAL AMOUNT ISSUED ON OUTSTANDING DEBT AS OF DECEMBER 31, 2009
$168,903,419
Basic Financial Statements, 4-59
2009 Comprehensive Annual Financial Report
Outstanding debt additions and retirements are summarized as follows:
City of Renton, Washington
Basic Financial Statements, 4-60
Beginning Balance
Ending Balance
Due Within One
General Governmental Debt
01/01/2009
Additions
Deductions
12/31/2009
Year
Limited General Obligation Debt
1997 GO Bonds
$ 490,000
$
$ 490,000
$
$
1997 GO Bonds - CAB Long Term Interest
459,414
459,414
-
2001 GO Refunding Bonds
13,035,000
335,000
12,700,000
1,350,000
2001 GO Bonds
6,000,000
-
6,000,000
-
2002 GO Bonds
3,020,000
160,000
2,860,000
170,000
2006 GO Bonds
17,460,000
540,000
16,920,000
565,000
Unamortized (discount)/premium 2006 GO Bonds
589,299
29,465
559,834
-
Total Limited GO Bonds
41,053,713
2,013,879
39,039,834
2,085,000
Unlimited General Obligation Debt
1993 GO Refunding Bonds- Senior Housing
505,000
505,000
-
-
Total Unlimited GO Bonds
505,000
505,000
Other Miscellaneous debt - Intergovernmental,
Backed with full faith and credit of the City
2000 GO Valley Comm. Bonds
1,428,000
175,000
1,253,000
184,000
2009 FD 40 Loan for acquisition of FS13
-
6,798,085
122,138
6,675,947
252,672
2009 (A) SCORE Tax Exempt
2,953,800
-
2,953,800
-
2009 (B) SCORE BABS
-
28,090,800
-
28,090,800
-
Total Miscellaneous
1,428,000
37,842,685
297,138
38,973,547
436,672
Total General Obligation Debt
42,986,713
37,842,685
2,816,017
78,013,381
2,521,672
Other:
Employee Leave Benefits (Comp. Absences)
5,120,276
3,224,276
2,918,558
5,425,995
3,092,817
Other post -employment benefits payable
757,876
1,912,147
1,104,351
1,565,672
-
Total Governmental Debt
$ 48,864,865
$ 42,979,108
$ 6,838,925
$ 85,005,048
$ 5,614,489
Basic Financial Statements, 4-60
2009 Comprehensive Annual Financial Report
City of Renton, Washington
DEEP DISCOUNT DEBT
The 1997 Limited General Obligation Bond issue included capital appreciation bonds that are
issued at a deep discount. The deep -discount debt matured in the year 2009 with an accreted
value of $1,000,000.
SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMMITMENT
As of December 31, 2009, the City of Renton has no special assessment debt outstanding.
DEBT LIMIT CAPACITIES
State law provides that debt cannot be incurred in excess of the following percentages of the
value of the taxable property of the City: 1.5 percent without a vote of the people provided the
indebtedness with a vote is 1 percent or less; 2.5 percent with a vote of the people; 5.0 percent
with a vote of the people, provided the indebtedness in excess of 2.5 percent is for utilities; and
Basic Financial Statements, 4-61
Beginning Balance
Ending Balance
Due Within One
Business -Type Debt
01/01/2009
Additions
Deductions
12/31/2009
Year
Revenue Bonds:
1998 Water/Sewer Refunding
$ 2,915,000 $
$ 595,000
$ 2,320,000
$ 625,000
1999 Golf System Refunding
2,510,000
310,000
2,200,000
325,000
2002 Water/Sewer Bond
3,120,000
455,000
2,665,000
630,000
2003 Water/Sewer Refunding
2,670,000
825,000
1,845,000
685,000
2004 Water/Sewer Bond
10,335,000
-
10,335,000
-
2007 Water/Sewer Bond
1,430,000
-
1,430,000
-
2007 Water/Sewer Bond (02)
8,320,000
15,000
8,305,000
15,000
2008 Water/Sewer Bond (a)
9,975,000
-
9,975,000
-
2008 Water/Sewer Bond (b)
2,035,000
2,035,000
Unamortized (discount)/premium
(336,283)
(79,135)
(257,148)
-
Total Revenue Bonds
42,973,717
2,120,865
40,852,852
2,280,000
Public Works Trust Fund Loans:
Sierra Heights Sewer Improvements
102,570
25,642
76,928
25,642
Central Renton Sewer Replacement
541,453
87,483
453,970
87,483
East Renton Interceptor
672,850
134,570
538,280
134,570
Dayton Avenue NE
30,618
5,103
25,515
5,103
NE 27th/Aberdeen Drainage Improvement
298,129
42,590
255,539
42,590
East kennydale Interceptor
934,837
116,855
817,982
116,855
Honeycreek Interceptor
774,976
96,872
678,104
96,872
Corrosion Control Treatment Facilities
444,212
49,357
394,855
49,357
Maplewood Water Improvement
393,912
30,301
363,611
30,301
Const. CT Pipeline for Wells
600,178
42,870
557,308
42,870
Maplewood Water Improvements
4,362,353
272,647
4,089,706
272,647
Total Public Work Trust Fund Loan
9,156,088
904,290
8,251,798
904,290
Other:
Golf Course Cart Operating Lease
55,180
-
21,995
33,185
23,127
Employee Leave Benefits (Comp.Absences)
616,317
181,932
151,334
646,915
156,570
Total Business -Type Debt
52,801,302
181,932
3,198,484
49,784,751
3,363,986
GRANDTOTALS
$ 101,666,168 $
43,161,041
$ 10,037,409
$ 134,789,799
$ 8,978,475
DEEP DISCOUNT DEBT
The 1997 Limited General Obligation Bond issue included capital appreciation bonds that are
issued at a deep discount. The deep -discount debt matured in the year 2009 with an accreted
value of $1,000,000.
SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMMITMENT
As of December 31, 2009, the City of Renton has no special assessment debt outstanding.
DEBT LIMIT CAPACITIES
State law provides that debt cannot be incurred in excess of the following percentages of the
value of the taxable property of the City: 1.5 percent without a vote of the people provided the
indebtedness with a vote is 1 percent or less; 2.5 percent with a vote of the people; 5.0 percent
with a vote of the people, provided the indebtedness in excess of 2.5 percent is for utilities; and
Basic Financial Statements, 4-61
2009 Comprehensive Annual Financial Report City of Renton, Washington
7.5 percent with a vote of the people provided the indebtedness in excess of 5.0 percent is for
open space development and parks facilities. Table 12 in the Statistical Section shows the
computation of legal debt margin for general and special purpose capacities for the City of
Renton.
ARBITRAGE
The City engages an outside agency to calculate its' arbitrage rebate liability on outstanding tax-
exempt bonds and certificates of participation under Section 148(f) of the Internal Revenue
Code. No additional rebate was found due for any revenue or general obligation bonds for
2009.
NEWLY ISSUED DEBT
The Fire District 40 Loan was issued March 1, 2009 in the amount of $ 6,798,085. The average
interest rate is 3.75%. This loan was issued for the purpose of providing money to pay part of
the costs of construction and acquisition of certain improvements to Fire District 40, which the
City of Renton provides fire services for. The loan is payable semiannually with principal and
interest payments until September 28, 2028.
The South Correctional Entity (SCORE) Bonds (A and B) were issued November 4, 2009 in the
amount of $ 8,205,000 and $ 78,030,000, respectively. The interest rates are 4%-5% for Series
A and 3%-6.62% for Series B. The City of Renton is obligated for $2,953,800 and $28,090,800,
respectively, which equates to 36%. These bonds were issued for the purpose of providing
money to pay part of the costs of construction and acquisition of certain improvements to the
jail facility. The Series A (tax exempt) bonds are payable semiannually with interest -only
payments until January 1, 2015 when annual principal payments will also be required. The final
payment will be January 1, 2022. The Series B (taxable) bonds are payable semi-annually with
interest -only payments until January 1, 2013 when annual principal payment will also be
required. The final payment will be January 1, 2039.
ANNUAL DEBT SERVICE REQUIREMENTS
The annual debt service requirements to maturity, including principal and interest, for long-
term debt as of December 31, 2009, are as follows:
Basic Financial Statements, 4-62
Governmental Activities
Business -Type
Activities
Year
Principal
Interest
Principal
Interest
2010
2,521,672
3,445,424
3,207,417
1,869,187
2011
2,615,236
3,978,150
3,284,348
1,770,245
2012
2,738,517
3,871,356
3,374,290
1,657,423
2013
3,551,839
3,724,902
2,863,648
1,547,100
2014
3,696,130
3,563,526
2,763,612
1,465,918
2015-2019
18,948,136
15,055,327
12, 294, 221
5,884,120
2020-2024
15,570,668
10,492,923
13,247,447
3,591,847
2025-2029
12,316,948
6,832,751
8,360,000
799,440
2030-2034
6,935,400
4,017,017
0
0
2035-2040
8,559,000
1,463,294
0
0
Subtotal
$77,453,546
$56,444,671
$49,394,982
$18,585,280
CAB Interest
0
0
0
0
Totals
$77,453,546
$56,444,671
$49,394,982
$18,585,280
Basic Financial Statements, 4-62
2009 Comprehensive Annual Financial Report
City of Renton, Washington
AMOUNT AVAILABLE FOR DEBT SERVICE
Fund balances that have been reserved for debt repayment are $367,652 in the debt service
funds.
OPERATING LEASES
The City has Golf Course Operating Lease agreement for the amount of $87,800 and dated June
2007. This lease is for the purchase of 50 Club Car Golf Carts. The lease qualifies as an
operating lease for accounting purposes because the individual cost of each golf cart is below
the City's capitalization threshold of $5,000. Payments are made monthly at an interest rate of
5.25%. The debt service for this lease is accounted for in the Municipal Golf Course System
Fund (404). As of December 31, 2009, the current and long-term portions of operating leases
payable were $23,127 and $10,058. The following table provides the future minimum lease
obligations and the net present value of these minimum lease payments as of December 31,
2009:
Operating Lease Obligations
YEAR ENDING DECEMBER 31, 2009
GOLF COURSE
FUND
2010
2011
$ 23,127
10,058
Total Minimum Lease Payments
33,185
Less: Interest
(1,266)
PRESENT VALUE OF MINIMUM LEASE PAYMENTS
$ 31,919
NOTE 14 - DEFERRED CHARGES IN PROPRIETARY FUNDS
As of December 31, 2009, the total amount of deferred charges and other assets reported in
the proprietary funds is $688,195. The Waterworks Utility Fund had deferred charges and
other assets in the amount of $661,483 for debt issuance costs related to the 2002-2008
Revenue Bonds. This amount will be fully amortized by 2027. The Golf Course Fund had
deferred charges and other assets amounting to $26,712 for debt issuance costs related to the
1999 Refunding Revenue Bond. This amount will be fully amortized by 2016.
NOTE 15. SEGMENT INFORMATION
An identifiable activity (or grouping of activities) required to be accounted for separately, which
(a) is reported as or within an enterprise fund; (b) for which one or more revenue bonds are
outstanding; and, (c) where the revenue stream is pledged for payment of, are required to
disclose segment information. The City of Renton has no required segment information to
disclose for 2009.
Basic Financial Statements, 4-63
2009 Comprehensive Annual Financial Report
NOTE 16. JOINT VENTURES
City of Renton, Washington
A joint venture is a legal entity or other organization that results from a contractual agreement
and that is owned, operated, or governed by two or more participants as a separate and
specific activity subject to joint control in which the participants retain (a) an on-going financial
interest or (b) an on-going financial responsibility. The City participates in two joint ventures.
VALLEY COMMUNICATIONS CENTER
The Valley Communications Center (Valley Comm) was established August 20, 1976, when an
Interlocal Agreement was entered into by four original participating municipal corporations,
including the cities of Renton, Kent, Auburn, and Tukwila. Federal Way was formally admitted
in 2000. The agreement is sanctioned by the provisions and terms of the Interlocal Cooperation
Act pursuant to Chapter 39.34 RCW. The initial duration of the agreement was five years, and
thereafter is automatically extended for consecutive five-year periods.
The purpose of the joint operation, hereafter referred to as Valley Comm, is to provide
improved consolidated emergency communications (dispatch) services for police, fire, and
medical aid, to the five participating cities and to several subscribing agencies that include:
King County Fire Districts 2, 17 (Black Diamond), 20, 26, 40, 43, 44, 47; City of Pacific Police and
Fire Departments; City of Black Diamond Police Department; City of Des Moines Police
Department; SeaTac Fire Department; North Highline Fire Department; King County EMS Units;
and Vashon Island Fire Department. Separate agreements between Valley Comm and the
subscribing agencies have been executed, which set forth conditions of services and rates
charged.
The City of Renton reports its share of equity interest in the Governmental Activities column
within the Government -wide financial statements under non-current assets. The following is
condensed (unaudited) financial information as of December 31, 2009 related to Valley Comm:
Completed Financial Statements for Valley Comm can be obtained from the Valley
Communications Center, 23807 — 98th Avenue South, Kent, WA 98031.
Basic Financial Statements, 4-64
Valley Communications Center
2009 Owner Cities Equity Allocation
Member City
Percent of Equity
2008 Equity Balance 2009 Distribution
2009 Equity Balance
Auburn
20.74%
$ 4,234,611 $
174,166
$ 4,408,777
Federal Way
13.66%
2,689,657
213,819
2,903,476
Kent
31.18%
6,372,363
255,808
6,628,171
Renton
21.90%
4,454,176
199,747
4,653,923
Tukwila
12.52%
2,570,406
90,843
2,661,249
Grand Totals
100.00%
$ 20,321,213 $
934,383
$ 21,255,596
Completed Financial Statements for Valley Comm can be obtained from the Valley
Communications Center, 23807 — 98th Avenue South, Kent, WA 98031.
Basic Financial Statements, 4-64
2009 Comprehensive Annual Financial Report City of Renton, Washington
SOUTH CORRECTIONAL ENTITY (SCORE)
The South Correctional Entity (SCORE) consolidated correctional facility was established
February 25, 2009, when an Interlocal Agreement (the "Original Interlocal Agreement") was
entered into by seven participating municipal governments, the "Member Cities" of Auburn,
Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila, under the authority of the
"Interlocal Cooperation Act" (RCW 39.34). This "Original Interlocal Agreement" was amended
and restated October 1, 2009 and named the City of Des Moines as the "Host City" and the
remaining Member Cities as "Owner Cities". This interlocal agreement is known as the
"Formation Interlocal Agreement". Pursuant to a separate "Host City Agreement" dated
October 1, 2009, the Host City will not enjoy the same equity position as the Owner Cities until
all debts issued are paid and the Host City fulfills all of its obligations as outlined in the
Agreement.
SCORE, an governmental administrative agency pursuant to RCW 39.34.030 (3), has the power
to acquire, construct, own, operate, maintain, equip, and improve a correctional facility known
as the "SCORE Facility" and to provide correctional services and functions incidental thereto, for
the purpose of detaining arrestees and sentenced offenders in the furtherance of public safety
and emergencies within the jurisdiction of the Member Cities. The SCORE Facility may serve
the Member Cities and Subscribing Agencies which are in need of correctional facilities. Any
agreement with a Subscribing Agency shall be in writing and approved by SCORE as provided
within the SCORE Formation Interlocal Agreement.
Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility
will be provided by bonds issued by the South Correctional Entity Facility Public Development
Authority (the "SCORE PDA"), a public development authority chartered by the City of Renton
pursuant to RCW 35.21.730 through 35.21.755 and secured by the full faith and credit of the
Cities of Auburn, Burien Federal Way, Renton, SeaTac, and Tukwila (the "Owner Cities"). The
SCORE PDA issued $86 million in special obligation bonds in 2009 to carry out the facility
development project. The following is a summary of the debt service requirements for the
bond issue:
The City of Renton reports its share of equity interest in the Governmental Activities column
within the Government -wide financial statements under non-current assets. The following is
condensed (unaudited) financial information as of December 31, 2009 related to SCORE:
Basic Financial Statements, 4-65
Surrun
ry of Debt Service Requirements
Debt Service
Schedule
Debt Service Allocation to Owner Cities
35%BABs
Auburn
Burien
Federal Way
Renton
SeaTac
Tukwila
Year
Principal
Interest
Subsidy
Total
31%
4%
18%
36%
3%
8%
2010
$ - $
3,394,191 $
(265,223) $
3,128,968
$ 969,980 $
125,159 $
563,214 $
1,126,428 $
93,869 $
250,317
2011
-
5,155,732
(1,675,089)
3,480,643
1,078,999
139,226
626,516
1,253,031
104,419
278,451
2012
-
5,155,732
(1,675,089)
3,480,643
1,078,999
139,226
626,516
1,253,031
104,419
278,451
2013
1,915,000
5,126,998
(1,675,089)
5,366,909
1,663,742
214,676
966,044
1,932,087
161,007
429,353
2014
1,950,000
5,066,566
(1,654,975)
5,361,591
1,662,093
214,464
965,086
1,930,173
160,848
428,927
2015-2019
10,750,000
24,045,404
(8,092,315)
26,703,089
8,277,958
1,068,124
4,806,556
9,613,112
801,093
2,136,247
2020-2024
12,905,000
21,102,168
(7,405,227)
26,601,941
8,246,602
1,064,078
4,788,349
9,576,699
798,058
2,128,155
2025-2029
15,675,000
16,833,706
(6,067,796)
26,440,910
8,196,682
1,057,636
4,759,364
9,518,728
793,227
2,115,273
2030-2034
19,265,000
11,158,380
(4,128,483)
26,294,897
8,151,418
1,051,796
4,733,081
9,466,163
788,847
2,103,592
2035-2039
23,775,000
4,064,705
(1,697,914)
26,141,791
8,103,955
1,045,672
4,705,522
9,411,045
784,254
2,091,343
Totals
$ 86,235,000 $
101,103,582 $
(34,337,200) $
153,001,382
$ 47,430,428 $
6,120,057 $
27,540,248 $
55,080,497 $
4,590,041 $
12,240,109
Note: Interest is to
be paid from bond proceeds during the construction period (2010 - 2011)
The City of Renton reports its share of equity interest in the Governmental Activities column
within the Government -wide financial statements under non-current assets. The following is
condensed (unaudited) financial information as of December 31, 2009 related to SCORE:
Basic Financial Statements, 4-65
2009 Comprehensive Annual Financial Report City of Renton, Washington
Completed financial statements for SCORE and SCORE PDA can be obtained from the SCORE
office, City of Renton, 1055 South Grady Way, Renton, WA 98057.
NOTE 17. SUBSEQUENT EVENTS
LIBRARY ANNEXATION
During the February 9, 2010 Special Election, voters approved the annexation of City of Renton
residents to the King County Library System (KCLS) effective January 2011. KCLS began
providing library services to the residents of the City of Renton on March 1, 2010 through an
interlocal service agreement including increased branch hours, more public computers and
different library programs. Renton will provide two replacement library facilities to be paid for
at a future date by City of Renton funds. Annexation means that City of Renton residents will
pay for library services through property taxes levied by KCLS rather than by the current system
of a combination of City general fund money and a fee paid by the City to KCLS. The KCLS levy
will be $.50 per $1,000 of assessed value which will in turn reduce the City's levy limit to $3.10
per $1,000. The City's regular levy per the King County Assessor's 2010 Annual Report is
$2.71184. KCLS is a separate local government, and not part of King County government, with
the sole purpose of providing library services. KCLS is governed by a Board of Trustees
appointed by the King County Council. The City of Renton will retain the authority to have its
own library board, which will serve in an advisory capacity to the King County Library System.
CITY OF RENTON REFUNDED DEBT
On May 11, 2010, the City issued $6,170,000 in Limited Tax General Obligation Refunding Bonds
with an average interest rate of 4.49% to advance refund $6,000,000 of outstanding 2001
Limited Tax General Obligation Bonds. The net proceeds were used to purchase U.S.
government securities which were deposited with an escrow agent to provide for all future
debt service payments on the refunded bonds. As a result, these bonds are considered
defeased. The advance refunding resulted in a reduction in the aggregate debt service
payments of $335,632 and a present value gain of $277,042.
Basic Financial Statements, 4-66
South Correctional Entity (SCORE)
2009 Owner Cities Equity Allocation
Member City
Percent of Equity
2008 Equity Balance 2009 Distribution
2009 Equity Balance
Auburn
31.00%
$ $
1,692,471
$ 1,692,471
Burien
4.00%
218,383
218,383
Federal Way
18.00%
982,725
982,725
Renton
36.00%
1,965,450
1,965,450
SeaTac
3.00%
163,787
163,787
Tukwila
8.00%
436,767
436,767
Grand Totals
100.00%
$ $
5,459,583
$ 5,459,583
Completed financial statements for SCORE and SCORE PDA can be obtained from the SCORE
office, City of Renton, 1055 South Grady Way, Renton, WA 98057.
NOTE 17. SUBSEQUENT EVENTS
LIBRARY ANNEXATION
During the February 9, 2010 Special Election, voters approved the annexation of City of Renton
residents to the King County Library System (KCLS) effective January 2011. KCLS began
providing library services to the residents of the City of Renton on March 1, 2010 through an
interlocal service agreement including increased branch hours, more public computers and
different library programs. Renton will provide two replacement library facilities to be paid for
at a future date by City of Renton funds. Annexation means that City of Renton residents will
pay for library services through property taxes levied by KCLS rather than by the current system
of a combination of City general fund money and a fee paid by the City to KCLS. The KCLS levy
will be $.50 per $1,000 of assessed value which will in turn reduce the City's levy limit to $3.10
per $1,000. The City's regular levy per the King County Assessor's 2010 Annual Report is
$2.71184. KCLS is a separate local government, and not part of King County government, with
the sole purpose of providing library services. KCLS is governed by a Board of Trustees
appointed by the King County Council. The City of Renton will retain the authority to have its
own library board, which will serve in an advisory capacity to the King County Library System.
CITY OF RENTON REFUNDED DEBT
On May 11, 2010, the City issued $6,170,000 in Limited Tax General Obligation Refunding Bonds
with an average interest rate of 4.49% to advance refund $6,000,000 of outstanding 2001
Limited Tax General Obligation Bonds. The net proceeds were used to purchase U.S.
government securities which were deposited with an escrow agent to provide for all future
debt service payments on the refunded bonds. As a result, these bonds are considered
defeased. The advance refunding resulted in a reduction in the aggregate debt service
payments of $335,632 and a present value gain of $277,042.
Basic Financial Statements, 4-66
2009 Comprehensive Annual Financial Report
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - GENERAL FUND
For the Year Ended December 31, 2009
REVENUES
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeits
Interfund revenues
Special assessments
Contributions
Interest
Miscellaneous revenues
TOTAL REVENUES
EXPENDITURES
Current:
General government
Judicial
Security of persons and property
Physical environment
Transportation
Economic environment
Mental & physical health
Culture & recreation
Capital outlay
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in
Transfer (out)
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
BUDGETED AMOUNTS
nD1r'IKIAI
EIKIAI
City of Renton, Washington
ACTUAL BUDGET TO GAAP
BUDGETARY DIFFERENCES
BASIS OVER (UNDER)
$ 73,507,193 $
71,108,193 $
68,923,515 $
(2,184,678)
3,317, 561
2,117, 561
2,316,471
198,910
8,971,086
10,107,913
9,997,242
(110,671)
4,387,581
3,837,581
3,669,526
(168,055)
1,494,000
1,974,000
3,724,162
1,750,162
3,310,752
3,310,752
3,228,110
(82,642)
5,100
5,100
1,353
(3,747)
137,400
150,150
150,544
394
818,800
318,800
315,898
(2,902)
110,000
312,505
169,504
(143,001)
96,059,473
93,242,555
92,496,325
(746,230)
10,959,919
10,361,952
12,161,678
1,799,726
2,188,336
2,225,770
2,134,283
(91,487)
47,498,191
47,388,945
44,138,330
(3,250,615)
2,953,303
2,919,994
2,431,213
(488,781)
6,942,444
6,959,358
7,043,665
84,307
7,489,198
7,583,240
6,723,740
(859,500)
10,812
10,812
19,726
8,914
11,485,701
15,706,913
14,879,074
(827,839)
2,053,985
2,025,979
1,879,921
(146,058)
91,581,889
95,182,963
91,411,630
(3,771,333)
1,084,695
4,477,584
(1,940,408)
3,025,103
-
311,157
277,004
(34,153)
(5,396,584)
(987,512)
(1,392,069)
404,557
(5,396,584)
(676,355)
(1,115,065)
370,404
(919,000)
(2,616,763)
(30,370)
3,395,507
11,320,313
13,517,097
13,517,097
-
$ 10,401,313 $
10,900,334 $
13,486,727 $
2,586,393
Required Supplemental Information, 5-1
2009 Comprehensive Annual Financial Report
FISCAL YEAR ENDING
December 31, 2004
December 31, 2005
December 31, 2006
December 31, 2007
December 31, 2008
December 31, 2009
City of Renton, Washington
ACTUARIAL VALUATION OF FIREFIGHTERS' PENSION FUND
EMPLOYER CONTRIBUTIONS
December 31, 2009
ANNUAL
FIRE TOTAL REQUIRED PERCENTAGE
EMPLOYER INSURANCE EMPLOYER CONTRIBUTION OFARC
CONTRIBUTIONS* PREMIUMS CONTRIBUTIONS (ARC)** CONTRIBUTED
$ (7,099) $
70,250 $
63,151
$ (205,680)
N/A %
(14,375)
72,404
58,029
(113,541)
N/A
(18,753)
77,821
59,068
(113,541)
N/A
(25,285)
85,062
59,777
(109,968)
N/A
(19,894)
85,949
66,055
(109,968)
N/A
(36,296)
106,623
70,327
(172,788)
N/A
* Employer contributions for pension are total contributions to the Fund net of disbursements from the Fund for medical expenses
under RCW 41.26.150 and administrative expenses.
Required Supplemental Information, 5-2
2009 Comprehensive Annual Financial Report
ACTUARIAL
VALUATION
DATE
January 1, 2008
City of Renton, Washington
Required Supplemental Information, 5-3
LEOFF 1 RETIREE MEDICAL BENEFITS
SCHEDULE OF FUNDING PROGRESS
December 31, 2009
ACTUARIAL ACCRUED
UAAL AS A
ACTUARIAL
LIABILITY (AAL)-
PERCENTAGE OF
VALUE OF
PROJECTED UNIT UNFUNDED FUNDED
COVERED
COVERED
ASSETS
CREDIT UAAL RATIO
PAYROLL
PAYROLL
(a)
(b) (b -a) (a/b)
( c)
((b-a)/c)
$ -
$ 32,327,794 $ 32,327,794 0%
$ 842,500
3837%
Required Supplemental Information, 5-3
2009 Comprehensive Annual Financial Report
This page intentionally left blank.
City of Renton, Washington
Required Supplemental Information 5-4
2009 Comprehensive Annual Financial Report
Non -Major Governmental Funds
Special Revenue Funds
ARTERIAL STREET FUND
City of Renton, Washington
The Arterial Street Fund was established pursuant to state law allocating the one-half
cent State Gasoline Tax revenue to cities and towns for construction, improvements,
and major repair of streets.
LEASED CITY PROPERTIES
Accounts for revenue and expenditures related to City property leased to outside
entities.
HOTEL/MOTEL TAX FUND
Accounts for monies collected through an increase of 1% in hotel/motel taxes for the
purpose of increasing tourism in the City of Renton.
PATHS AND TRAILS RESERVE FUND
The Paths and Trails Reserve Fund was created for the purpose of planning,
accommodating, and establishing and maintaining certain paths and trails within the
City of Renton.
1% FOR ART FUND
The City of Renton established this fund to account for one percent of construction
project actual costs to be used for the selection, acquisition and/or installation of works
of art to be placed in, on, or about City public facilities.
CABLE COMMUNICATIONS DEVELOPMENT FUND
The Cable Communications Development Fund accounts for funding for promotion and
development of cable communications as established by City ordinance.
SPRINGBROOK WETLANDS BANK FUND
The City of Renton established this fund in 2007 for the purpose of providing accounting
for the Springbrook Creek Wetland and Habitat Mitigation Bank project. The fund will
receive revenue by selling Wetlands Credits to third parties and to the City's internal
departments.
Combining Statements & Schedules, 6-1
2009 Comprehensive Annual Financial Report City of Renton, Washington
Debt Service Funds
GENERAL GOVERNMENTAL MISCELLANEOUS DEBT
This debt service fund accounts for the following outstanding debt issues:
• 1997 limited tax general obligation bonds which provided funding for the
purchase of Renton City Hall
• 2001 limited tax general obligation refunding bonds which refunded a
portion of the 1997 limited tax general obligation bonds for the purchase of
Renton City Hall
• 2001 limited tax general obligation bonds which provided funding for the
construction of a downtown parking facility
• 2002 limited tax general obligation bonds which provided funding for the
construction of a new fire station
• 2006 limited tax general obligation bonds which provided funding for the
construction of South Lake Washington infrastructure improvements
• 2000 intergovernmental debt related to the construction of a new facility
for Valley Communications Center
• 2009 intergovernmental debt related to the Fire District #40 asset transfer
as a result of the Benson Hill annexation
1989 UNLIMITED GENERAL OBLIGATION BOND REDEMPTION FUND
This debt service fund accounts for debt service on a voter -approved bond issue, which
provided financing to acquire, construct, rehabilitate, equip, and develop low-income
housing for the elderly.
Combining Statements & Schedules, 6-2
2009 Comprehensive Annual Financial Report
Capital Project Funds
COMMUNITY DEVELOPMENT IMPACT MITIGATION FUND
City of Renton, Washington
Accounts for monies collected from developers to offset impacts created by their
developments to City facilities.
FIRE IMPACT MITIGATION FUND
Accounts for monies collected from developers to offset impacts created by their
developments to City facilities.
TRANSPORTATION IMPACT MITIGATION FUND
Accounts for monies collected from developers to offset impacts created by their
developments to City facilities.
SOUTH LAKE WASHINGTON INFRASTRUCTURE PROJECT FUND
The South Lake Washington Infrastructure Project Fund accounts for the infrastructure
improvements at the south end of Lake Washington. Primary resources include: REET,
sales tax, grants, and GO Bonds which provide for the design, construction, labor wages
and benefits, and equipment required to implement the project.
Combining Statements & Schedules, 6-3
2009 Comprehensive Annual Financial Report
Non -Major Proprietary Funds
Enterprise Funds
AIRPORT FUND
City of Renton, Washington
The Airport Fund accounts for revenues and expenses for administration, debt services,
operation, capital improvements, and maintenance of the Renton Municipal Airport and
Will Rodger -Wily Post Memorial Seaplane Base. Sources of support to the fund are
leases, fuel charges, investment interest, and grant funding as available.
GOLF COURSE FUND
The Golf Course Fund was created after the City acquired the Maplewood Golf Course.
The fund accounts for the operation, maintenance, debt service, and capital
improvements of the facility.
Internal Service Funds
EQUIPMENT RENTAL
The Equipment Rental Fund accounts for the costs of maintaining and replacing all City
vehicles and auxiliary equipment, except for fire apparatus and replacement of police
patrol vehicles. In addition, this fund accounts for the City's information technology,
facilities and communications costs. All costs, including depreciation, are factors in
calculating the rates that are charged to each user department.
INSURANCE FUND
The Insurance Fund provides accounting for self-insurance services to all City
departments, including provisions for losses on property, liability, worker's
compensation, unemployment compensation, and the health care program. Expenses
are paid from the Insurance Fund and rates are charged to departments based on use
and/or coverage requirements.
Combining Statements & Schedules, 6-4
2009 Comprehensive Annual Financial Report
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2009
Page 1 of 6
SPECIAL REVENUE FUNDS
City of Renton, Washington
ASSETS
STREET
PROPERTIES
MOTELTAX
TRAILS
Cash & cash equivalents
$
113,344
$ 620,627
$ 120,244
$
1,857
Cash with fiscal agent
-
15,229
-
-
Investments
85,276
466,942
90,468
1,398
Receivables (net of allowances):
Customer accounts
-
188,162
-
-
Accrued interest & penalty
842
3,460
580
9
Due from other funds
1,224
-
36,537
-
Due from other governmental units
201,102
-
23,900
-
TOTAL ASSETS
401,788
1,294,420
271,729
3,264
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
$
$ 8,883
$
$
Taxes payable
13,753
Retainage payable
1,739
Due to other funds
1,224
Deposits
32,981
Deferred revenue
494,477
Accrued employee wages and leave payable
4,490
Total liabilities
557,547
-
Fund balances
Unreserved, designated for:
Special revenue fund contingencies
401,788
736,873
271,729
3,264
Total fund balances
401,788
736,873
271,729
3,264
TOTAL LIABILITIES AND FUND BALANCES
$
401,788
$ 1,294,420
$ 271,729
$
3,264
Combining Statements & Schedules, 6-5
2009 Comprehensive Annual Financial Report
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2009
Page 2 of 6
SPECIAL REVENUE FUNDS
City of Renton, Washington
ASSETS
ART
& DEVELOPMENT
WETLANDS
SRF
Cash & cash equivalents
$
81,844
$ 50,845
$ 261,472
$
1,250,233
Cash with fiscal agent
-
-
-
15,229
Investments
61,577
38,254
196,724
940,639
Receivables (net of allowances):
Customer accounts
-
-
-
188,162
Accrued interest & penalty
375
293
1,332
6,891
Due from other funds
-
-
-
37,761
Due from other governmental units
-
-
-
225,002
TOTAL ASSETS
143,796
89,392
459,528
2,663,917
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
$
-
$
$ -
$
8,883
Taxes payable
13,753
Retainage payable
1,739
Due to other funds
1,224
Deposits
32,981
Deferred revenue
494,477
Accrued employee wages and leave payable
4,490
Total liabilities
-
-
557,547
Fund balances
Unreserved, designated for:
Special revenue funds contingencies
143,796
89,392
459,528
2,106,370
Total fund balances
143,796
89,392
459,528
2,106,370
TOTAL LIABILITIES AND FUND BALANCES
$
143,796
$ 89,392
$ 459,528
$
2,663,917
Combining Statements & Schedules, 6-6
2009 Comprehensive Annual Financial Report
ASSETS
Cash & cash equivalents
Investments
Receivables (net of allowances):
Taxes
Accrued interest & penalty
Due from other funds
Due from other governmental units
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Deferred revenue
Total liabilities
Fund balances
Unreserved. Designated for:
Debt service funds
Total fund balances
City of Renton, Washington
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2009
Page 3 of 6
GENERAL 1989 UGO BOND TOTAL
26,619
34,079 60,698
59,419
- 59,419
4,703
4,703
163,067
163,067
2,222,053
- 2,222,053
2,511,242
79,374 2,590,616
$ 911 $
- $ 911
2,222,964
2,222,964
288,278 79,374 367,652
288,278 79,374 367,652
$ 2,511,242 $ 79,374 $ 2,590,616
Combining Statements & Schedules, 6-7
2009 Comprehensive Annual Financial Report
ASSETS
Cash & cash equivalents
Investments
Receivables (net of allowances):
Accrued interest & penalty
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Retainage payable
Total liabilities
Fund balances
Unreserved, designated for:
Capital projects funds
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
City of Renton, Washington
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2009
Page 4 of 6
C.D. IMPACT FIRE IMPACT
TRANS. IMPACT
SO LK WA INFRA -
MITIGATION MITIGATION
MITIGATION
STRUCTURE
$ 606,101 $ 1,274,082
$ 1,202,806
$
64,886
456,012 958,582
904,956
48,818
4,480 170,862
59,372
335
1,066,593 2,403,526
2,167,134
114,039
$ $ 40,004
$ -
$
-
40,004
-
-
1,066,593 2,363,522
2,167,134
114,039
1,066,593 2,363,522
2,167,134
114,039
$ 1,066,593 $ 2,403,526
$ 2,167,134
$
114,039
Combining Statements & Schedules, 6-8
2009 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2009
Page 5 of 6
ASSETS
Cash & cash equivalents
Investments
Receivables (net of allowances):
Accrued interest & penalty
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Retainage payable
Total liabilities
Fund balances
Unreserved, designated for:
Capital projects funds
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
TOTAL
CPF
$ 3,147,875
2,368,368
235,049
5,751,292
$ 40,004
40,004
5,711,288
5,711,288
$ 5,751,292
Combining Statements & Schedules, 6-9
2009 Comprehensive Annual Financial Report
ASSETS
Cash & cash equivalents
Cash with fiscal agent
Investments
Receivables (net of allowances):
Taxes
Customer accounts
Accrued interest & penalty
Due from other funds
Due from other governmental units
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Taxes payable
Retainage payable
Due to other tunds
Deposits
Deferred revenue
Accrued employee wages and leave payable
Total liabilities
Fund balances
Unreserved, designated for:
Special revenue funds contingency
Debt service funds
Capital projects funds
TOTAL LIABILITIES AND FUND BALANCES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2009
Page 6 of 6
TOTAL TOTAL
City of Renton, Washington
TOTAL OTHER
TOTAL GOVERNMENTAL
$ 1,250,233
$ 80,676
$
3,147,875
$
4,478,784
15,229
-
-
15,229
940,639
60,698
2,368,368
3,369,705
-
59,419
-
59,419
188,162
-
-
188,162
6,891
4,703
235,049
246,643
37,761
163,067
-
200,828
225,002
2,222,053
-
2,447,055
$ 2,663,917
$ 2,590,616
$
5,751,292
$
11,005,825
$ 8,883
$ 911
$
-
$
9,794
13,753
-
-
13,753
1,739
40,004
41,743
1,224
-
1,224
32,981
-
32,981
494,477
2,222,053
2,716,530
4,490
-
-
4,490
557,547
2,222,964
40,004
2,820,515
2,106,370
-
-
2,106,370
-
367,652
-
367,652
-
-
5,711,288
5,711,288
2,106,370
367,652
5,711,288
8,185,310
$ 2,663,917
$ 2,590,616
$
5,751,292
$
11,005,825
Combining Statements & Schedules, 6-10
2009 Comprehensive Annual Financial Report City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2009
Page 1 of 6
SPECIAL REVENUE FUNDS
REVENUES
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Contributions
Interest
Miscellaneous revenues
TOTAL REVENUES
EXPENDITURES
Current:
General government
Economic environment
Culture & recreation
Capital outlay
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in
Transfer (out)
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
ARTERIAL LEASED CITY HOTEL/ PATHS &
STREET PROPERTIES MOTELTAX TRAILS
$ $
$
190,472 $
596,305
-
822,042
-
-
-
65,000
2,907
9,886
1,415
21
599,212
831,928
256,887
21
-
762,321
-
-
-
306,251
1,150
-
-
763,471
306,251
-
(49,364)
599,212
68,457
21
(750,000)
(570,790)
(750,000)
(570,790)
-
(502,333)
21
(150,788)
(49,364)
552,576
1,239,206
321,093
3,243
$ 401,788 $
736,873 $
271,729 $
3,264
Combining Statements & Schedules, 6-11
2009 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2009
Page 2 of 6
REVENUES
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Contributions
Interest
Miscellaneous revenues
TOTAL REVENUES
EXPENDITURES
Current:
General government
Economic environment
Culture & recreation
Capital outlay
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in
Transfer (out)
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
1% FOR CABLE COMM. SPRINGBROOK TOTAL
ART & DEVELOPMENT WETLANDS SRF
$ $ - $ $ 190,472
10,051 10,051
- 596,305
822,042
- 65,000
829 696 3,026 18,780
- 1,500 - 1,500
829 12,247 3,026 1,704,150
- 35,224
2,250 -
2,250 35,224
762,321
306,251
35,224
_ 3,400
1,107,196
3,026 596,954
23,539 23,539
- (1,320,790)
23,539 (1,297,251)
121,678
112,369
456,502
2,806,667
$ 143,796 $
89,392 $
459,528 $
2,106,370
Combining Statements & Schedules, 6-12
2009 Comprehensive Annual Financial Report
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2009
Page 3 of 6
REVENUES
Taxes
Licenses and permits
Intergovernmental revenues
Interest
TOTAL REVENUES
EXPENDITURES
Debt service:
Debt service:
Interest payment
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
City of Renton, Washington
GENERAL 1989 UGO BOND TOTAL
DEBT REDEMPTION DSF
$ 1,307,775 $ 2,275 $ 1,310,050
2,165,886 - 2,165,886
250,650 - 250,650
17,910 434 18,344
3,742,221 2,709 3,744,930
1,822,138 505,000 2,327,138
2,605,334 15,742 2,621,076
4,427,472 520,742 4,948,214
300,000
300,000
300,000
300,000
673,529 597,407 1,270,936
$ 288,278 $ 79,374 $ 367,652
Combining Statements & Schedules, 6-13
2009 Comprehensive Annual Financial Report
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2009
Page 4 of 6
City of Renton, Washington
NET CHANGE IN FUND BALANCE
C.D. IMPACT
FIRE IMPACT
TRANS. IMPACT
FUND BALANCE JANUARY 1
MITIGATION
MITIGATION
MITIGATION
REVENUES
$ 1,066,593 $
2,363,522 $
2,167,134
Charges for services
$ 72,950 $
112,203 $
56,981
Interest
15,755
67,672
33,206
TOTAL REVENUES
88,705
179,875
90,187
EXPENDITURES
Capital outlay
5,696
-
-
Debt service:
Interest payment
-
TOTAL EXPENDITURES
5,696
-
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
83,009
179,875
90,187
OTHER FINANCING SOURCES (USES)
Transfer in
5,696
173,102
Transfer (out)
(711,038)
(300,000)
(1,673,102)
TOTAL OTHER FINANCE SOURCES (USES)
(705,342)
(300,000)
(1,500,000)
NET CHANGE IN FUND BALANCE
(622,333)
(120,125)
(1,409,813)
FUND BALANCE JANUARY 1
1,688,926
2,483,647
3,576,947
FUND BALANCE DECEMBER 31
$ 1,066,593 $
2,363,522 $
2,167,134
Combining Statements & Schedules, 6-14
2009 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2009
Page 5 of 6
NET CHANGE IN FUND BALANCE (88,319) (2,240,590)
FUND BALANCE JANUARY 1 202,358 7,951,878
FUND BALANCE DECEMBER 31 $ 114,039 $ 5,711,288
Combining Statements & Schedules, 6-15
SO LK WA INFRA-
TOTAL
STRUCTURE
CPF
REVENUES
Charges for services
$ (190,282) $
51,852
Interest
526
117,159
TOTAL REVENUES
(189,756)
169,011
EXPENDITURES
Capital outlay
9,565,822
9,571,518
Debt service:
Interest payment
8,081
8,081
TOTAL EXPENDITURES
9,573,903
9,579,599
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
(9,763,659)
(9,410,588)
OTHER FINANCING SOURCES (USES)
Transfer in
9,677,480
9,856,278
Transfer (out)
(2,140)
(2,686,280)
TOTAL OTHER FINANCE SOURCES (USES)
9,675,340
7,169,998
NET CHANGE IN FUND BALANCE (88,319) (2,240,590)
FUND BALANCE JANUARY 1 202,358 7,951,878
FUND BALANCE DECEMBER 31 $ 114,039 $ 5,711,288
Combining Statements & Schedules, 6-15
2009 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
Combining Statements & Schedules, 6-16
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2009
Page 6 of 6
TOTAL OTHER
TOTAL
TOTAL
TOTAL
GOVERNMENTAL
SRF
DSF
CPF
FUNDS
REVENUES
Taxes
$ 190,472 $
1,310,050 $
$ 1,500,522
Licenses and permits
10,051
2,165,886
2,175,937
Intergovernmental revenues
596,305
250,650
846,955
Charges for services
822,042
-
51,852
873,894
Contributions
65,000
-
-
65,000
Interest
18,780
18,344
117,159
154,283
Miscellaneous revenues
1,500
-
-
1,500
TOTAL REVENUES
1,704,150
3,744,930
169,011
5,618,091
EXPENDITURES
Current:
General government
762,321
-
-
762,321
Economic environment
306,251
306,251
Culture & recreation
35,224
-
35,224
Capital outlay
3,400
-
9,571,518
9,574,918
Debt service:
Principal payment
-
2,327,138
-
2,327,138
Interest payment
-
2,621,076
8,081
2,629,157
TOTAL EXPENDITURES
1,107,196
4,948,214
9,579,599
15,635,009
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
596,954
(1,203,284)
(9,410,588)
(10,016,918)
OTHER FINANCING SOURCES (USES)
Transfer in
23,539
300,000
9,856,278
10,179,817
Transfer (out)
(1,320,790)
-
(2,686,280)
(4,007,070)
TOTAL OTHER FINANCE SOURCES (USES)
(1,297,251)
300,000
7,169,998
6,172,747
NET CHANGE IN FUND BALANCE
(700,297)
(3,844,171)
(903,284)
(2,240,590)
FUND BALANCE JANUARY 1
2,806,667
1,270,936
7,951,878
12,029,481
FUND BALANCE DECEMBER 31
$ 2,106,370 $
367,652 $
5,711,288
$ 8,185,310
Combining Statements & Schedules, 6-16
2009 Comprehensive Annual Financial Report
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - ARTERIAL STREET FUND
For the Year Ended December 31, 2009
REVENUES
Intergovernmental revenues
Interest
TOTAL REVENUES
EXPENDITURES
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer (out)
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
City of Renton, Washington
ACTUAL BUDGET TO GAAP
BUDGETED AMOUNTS BUDGETARY DIFFERENCES
ORIGINAL FINAL BASIS OVER (UNDER)
$ 633,475 $ 633,475 $ 596,305 $ (37,170)
5,100 5,100 2,907 (2,193)
638,575 638,575 599,212 (39,363)
638,575
638,575
599,212 (39,363)
(750,000)
(750,000)
(750,000)
(750,000)
(750,000)
(750,000)
$ 261,305 $ 441,151 $ 401,788 $ (39,363)
Combining Statements & Schedules, 6-17
2009 Comprehensive Annual Financial Report
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - LEASED CITY PROPERTIES
For the Year Ended December 31, 2009
REVENUES
Intergovernmental revenues
Charges for services
Interest
Miscellaneous revenues
TOTAL REVENUES
EXPENDITURES
Current:
General government
Capital outlay
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer (out)
TOTAL OTHER FINANCE SOURCES (USES)
City of Renton, Washington
ACTUAL BUDGET TO GAAP
BUDGETED AMOUNTS BUDGETARY DIFFERENCES
ORIGINAL FINAL BASIS OVER (UNDER)
$ $ 470,065 $ - $ (470,065)
1,244,322 1,244,322 822,042 (422,280)
- - 9,886 9,886
- 257,988 - (257,988)
1,244,322 1,972,375 831,928 (1,140,447)
673,532 671,923 762,321 90,398
- 728,053 1,150 (726,903)
673,532 1,399,976 763,471 (636,505)
(570,790) (1,209,305) (570,790) (638,515)
(570,790) (1,209,305) (570,790) 638,515
NET CHANGE IN FUND BALANCE - (636,906) (502,333) 134,573
FUND BALANCE JANUARY 1 1,252,058 1,239,206 1,239,206 -
FUND BALANCE DECEMBER 31 $ 1,252,058 $ 602,300 $ 736,873 $ 134,573
Combining Statements & Schedules, 6-18
2009 Comprehensive Annual Financial Report City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - HOTEL/MOTEL TAX FUND
For the Year Ended December 31, 2009
EXPENDITURES
Current:
Economic environment
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
295,000 326,000 306,251 (19,749)
295,000 326,000 306,251 (19,749)
$ 296,145 $ 335,493 $ 271,729 $ (63,764)
Combining Statements & Schedules, 6-19
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL FINAL
BASIS
OVER (UNDER)
REVENUES
Taxes
$ 265,200 $ 265,200 $
190,472
$ (74,728)
Contributions
65,000 65,000
65,000
Interest
10,200 10,200
1,415
(8,785)
TOTAL REVENUES
340,400 340,400
256,887
(83,513)
EXPENDITURES
Current:
Economic environment
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
295,000 326,000 306,251 (19,749)
295,000 326,000 306,251 (19,749)
$ 296,145 $ 335,493 $ 271,729 $ (63,764)
Combining Statements & Schedules, 6-19
2009 Comprehensive Annual Financial Report City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - PATHS AND TRAILS FUND
For the Year Ended December 31, 2009
ACTUAL BUDGET TO GAAP
BUDGETED AMOUNTS BUDGETARY DIFFERENCES
ORIGINAL FINAL BASIS OVER (UNDER)
REVENUES
Interest
TOTAL REVENUES
EXPENDITURES
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
21 21
- - 21 21
3,243 3,243 3,243 -
$ 3,243 $ 3,243 $ 3,264 $ 21
Combining Statements & Schedules, 6-20
2009 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - 1% FOR ART FUND
For the Year Ended December 31, 2009
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL FINAL
BASIS
OVER (UNDER)
REVENUES
Interest
$ $ $
829
$ 829
TOTAL REVENUES
829
829
EXPENDITURES
Current:
General government
45,000
-
(45,000)
Capital outlay
-
2,250
2,250
TOTAL EXPENDITURES
45,000
2,250
(42,750)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
(45,000)
(1,421)
43,579
OTHER FINANCING SOURCES (USES)
Transfer in
45,000
23,539
(21,461)
TOTAL OTHER FINANCE SOURCES (USES)
45,000
23,539
(21,461)
NET CHANGE IN FUND BALANCE
-
22,118
22,118
FUND BALANCE JANUARY 1
121,678 121,678
121,678
-
FUND BALANCE DECEMBER 31
$ 121,678 $ 121,678 $
143,796
$ 22,118
Combining Statements & Schedules, 6-21
2009 Comprehensive Annual Financial Report City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - CABLE COMMUNICATIONS DEVELOPMENT FUND
For the Year Ended December 31, 2009
Combining Statements & Schedules, 6-22
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Taxes
$ 40,674 $
40,674 $
-
$ (40,674)
Licenses and permits
45,000
45,000
10,051
(34,949)
Interest
-
-
696
696
Miscellaneous revenues
-
-
1,500
1,500
TOTAL REVENUES
85,674
85,674
12,247
(73,427)
EXPENDITURES
Current:
Culture & recreation
45,674
45,674
35,224
(10,450)
Capital outlay
40,000
40,000
-
(40,000)
TOTAL EXPENDITURES
85,674
85,674
35,224
(50,450)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
-
-
(22,977)
(22,977)
OTHER FINANCING SOURCES (USES)
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
-
-
(22,977)
(22,977)
FUND BALANCE JANUARY 1
112,369
112,369
112,369
FUND BALANCE DECEMBER 31
$ 112,369 $
112,369 $
89,392
$ (22,977)
Combining Statements & Schedules, 6-22
2009 Comprehensive Annual Financial Report
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - SPRINGBROOK WETLANDS BANK FUND
For the Year Ended December 31, 2009
REVENUES
Interest
TOTAL REVENUES
EXPENDITURES
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
City of Renton, Washington
ACTUAL BUDGET TO GAAP
BUDGETED AMOUNTS BUDGETARY DIFFERENCES
ORIGINAL FINAL BASIS OVER (UNDER)
$ 10,500 $ 10,500 $ 3,026 $ (7,474)
10,500 10,500 3,026 (7,474)
10,500 10,500
$ 19,002 $ 467,002 $ 459,528 $ (7,474)
Combining Statements & Schedules, 6-23
2009 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - GENERAL GOVERNMENTAL MISCELLANEOUS DEBT SERVICE FUND
For the Year Ended December 31, 2009
REVENUES
Taxes
Licenses and permits
Intergovernmental revenues
Interest
TOTAL REVENUES
EXPENDITURES
Debt service:
Principal payment
Interest payment
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in
TOTAL OTHER FINANCE SOURCES (USES)
1►1��y:IeV [eI�IP�11L1�1:1e1�_1►[y�
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
BUDGETED AMOUNTS
nDlrIKIAI
CIKIAi
ACTUAL BUDGET TO GAAP
BUDGETARY DIFFERENCES
BASIS OVER (UNDER)
$ 4,187,565 $
2,822,565 $
1,307,775 $
(1,514,790)
-
-
2,165,886
2,165,886
-
250,650
250,650
-
102,816
102,816
17,910
(84,906)
4,290,381
3,176,031
3,742, 221
566,190
1,700,000
1,822,138
1,822,138
2,890,381
2,695,893
2,605,334
(90,559)
4,590,381
4,518,031
4,427,472
(90,559)
(1,342,000)
(300,000)
656,749
(685,251)
300,000
300,000
300,000
-
300,000
300,000
300,000
(1,042,000)
-
656,749
(385,251)
496,251
673,529
673,529
-
$ 496,251 $
(368,471) $
288,278 $
656,749
Combining Statements & Schedules, 6-24
2009 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - 1989 UNLIMITED GENERAL OBLIGATION BOND REDEMPTION FUND (Coulon Park)
For the Year Ended December 31, 2009
Combining Statements & Schedules, 6-25
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Taxes
$ - $
- $
2,275
$ 2,275
Interest
5,100
5,100
434
(4,666)
TOTAL REVENUES
5,100
5,100
2,709
(2,391)
EXPENDITURES
Debt service:
Principal payment
505,000
505,000
505,000
Interest payment
18,230
18,230
15,742
(2,488)
TOTAL EXPENDITURES
523,230
523,230
520,742
(2,488)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
(518,130)
(518,130)
(518,033)
97
OTHER FINANCING SOURCES (USES)
TOTAL OTHER FINANCE SOURCES (USES)
-
NET CHANGE IN FUND BALANCE
(518,130)
(518,130)
(518,033)
97
FUND BALANCE JANUARY 1
496,117
597,407
597,407
-
FUND BALANCE DECEMBER 31
$ (22,013) $
79,277 $
79,374
$ 97
Combining Statements & Schedules, 6-25
2009 Comprehensive Annual Financial Report
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL- COMMUNITY DEVELOPMENT IMPACT MITIGATION FUND
For the Year Ended December 31, 2009
City of Renton, Washington
Combining Statements & Schedules, 6-26
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Charges for services
$ 300,000 $
300,000 $
72,950
$ (227,050)
Interest
-
-
15,755
15,755
TOTAL REVENUES
300,000
300,000
88,705
(211,295)
EXPENDITURES
Capital outlay
-
-
5,696
5,696
TOTAL EXPENDITURES
-
-
5,696
5,696
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
300,000
300,000
83,009
(216,991)
OTHER FINANCING SOURCES (USES)
Transfer in
-
5,696
5,696
Transfer (out)
(711,038)
(711,038)
TOTAL OTHER FINANCE SOURCES (USES)
-
(705,342)
(705,342)
NET CHANGE IN FUND BALANCE
300,000
(405,342)
(622,333)
(216,991)
FUND BALANCE JANUARY 1
1,670,013
1,688,926
1,688,926
FUND BALANCE DECEMBER 31
$ 1,970,013 $
1,283,584 $
1,066,593
$ (216,991)
Combining Statements & Schedules, 6-26
2009 Comprehensive Annual Financial Report
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - FIRE IMPACT MITIGATION FUND
For the Year Ended December 31, 2009
City of Renton, Washington
Combining Statements & Schedules, 6-27
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Charges for services
$ 240,000 $
240,000 $
112,203
$ (127,797)
Interest
60,000
60,000
67,672
7,672
TOTAL REVENUES
300,000
300,000
179,875
(120,125)
EXPENDITURES
TOTAL EXPENDITURES
-
-
-
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
300,000
300,000
179,875
(120,125)
OTHER FINANCING SOURCES (USES)
Transfer (out)
(300,000)
(300,000)
(300,000)
TOTAL OTHER FINANCE SOURCES (USES)
(300,000)
(300,000)
(300,000)
NET CHANGE IN FUND BALANCE
-
-
(120,125)
(120,125)
FUND BALANCE JANUARY 1
2,375,768
2,483,647
2,483,647
FUND BALANCE DECEMBER 31
$ 2,375,768 $
2,483,647 $
2,363,522
$ (120,125)
Combining Statements & Schedules, 6-27
2009 Comprehensive Annual Financial Report City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - TRANSPORTATION IMPACT MITIGATION FUND
For the Year Ended December 31, 2009
Combining Statements & Schedules, 6-28
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Charges for services
869,000
369,000
56,981
(312,019)
Interest
31,000
31,000
33,206
2,206
TOTAL REVENUES
$ 900,000 $
400,000 $
90,187
$ (309,813)
EXPENDITURES
TOTAL EXPENDITURES
-
-
-
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
900,000
400,000
90,187
(309,813)
OTHER FINANCING SOURCES (USES)
Transfer in
-
173,102
173,102
Transfer (out)
(900,000)
(3,173,102)
(1,673,102)
(1,500,000)
TOTAL OTHER FINANCE SOURCES (USES)
(900,000)
(3,000,000)
(1,500,000)
1,500,000
NET CHANGE IN FUND BALANCE
-
(2,600,000)
(1,409,813)
1,190,187
FUND BALANCE JANUARY 1
3,332,475
3,576,947
3,576,947
-
FUND BALANCE DECEMBER 31
$ 3,332,475 $
976,947 $
2,167,134
$ 1,190,187
Combining Statements & Schedules, 6-28
2009 Comprehensive Annual Financial Report City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - MUNICIPAL FACILITIES CAPITAL IMPROVEMENT FUND
For the Year Ended December 31, 2009
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt
5,250,000
6,798,085
ACTUAL
BUDGET TO GAAP
Transfer in
BUDGETED AMOUNTS
2,599,256
BUDGETARY
DIFFERENCES
Transfer (out)
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
(746,384)
3,113,713
4,065,451
951,738
Taxes
$ 1,123,000 $
1,283,000 $
1,121,663 $
(161,337)
Intergovernmental revenues
95,000
4,294,339
5,017,007
722,668
Contributions
-
91,340
91,340
-
Interest
601,539
101,539
268,017
166,478
TOTAL REVENUES
1,819,539
5,770,218
6,498,027
727,809
EXPENDITURES
Current:
Security of persons and property
-
-
1,910,637
1,910,637
Economic environment
82,000
85,000
41,018
(43,982)
Capital outlay
1,070,000
20,465,465
14,958,941
(5,506,524)
TOTAL EXPENDITURES
1,152,000
20,550,465
16,910,596
(3,639,869)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
667,539
(14,780,247)
(10,412,569)
4,367,678
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt
5,250,000
6,798,085
6,798,085
Transfer in
1,551,790
2,599,256
2,292,828
(306,428)
Transfer (out)
(7,548,174)
(6,283,628)
(5,025,462)
(1,258,166)
TOTAL OTHER FINANCE SOURCES (USES)
(746,384)
3,113,713
4,065,451
951,738
NET CHANGE IN FUND BALANCE
(78,845)
(6,347,118)
(11,666,534)
5,319,416
FUND BALANCE JANUARY 1
12,575,642
13,774,100
13,774,100
-
FUND BALANCE DECEMBER 31
$ 12,496,797 $
2,107,566 $
7,426,982 $
5,319,416
Combining Statements & Schedules, 6-29
2009 Comprehensive Annual Financial Report City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - GENERAL GOVERNMENT CAPITAL IMPROVEMENT FUND
For the Year Ended December 31, 2009
Combining Statements & Schedules, 6-30
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Licenses and permits
$ 1,900,000 $
1,600,000 $
1,733,963 $
133,963
Intergovernmental revenues
18,949,772
22,196,355
8,107,245
(14,089,110)
Contributions
116,576
404,866
209,921
(194,945)
Interest
-
-
15,409
15,409
TOTAL REVENUES
20,966,348
24,201,221
10,066,538
(14,134,683)
EXPENDITURES
Capital outlay
22,675,579
30,994,671
15,576,013
(15,418,658)
TOTAL EXPENDITURES
22,675,579
30,994,671
15,576,013
(15,418,658)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
(1,709,231)
(6,793,450)
(5,509,475)
1,283,975
OTHER FINANCING SOURCES (USES)
Transfer in
1,650,000
4,300,000
2,310,000
(1,990,000)
Transfer (out)
-
(40,000)
(21,399)
(18,601)
TOTAL OTHER FINANCE SOURCES (USES)
1,650,000
4,260,000
2,288,601
(1,971,399)
NET CHANGE IN FUND BALANCE
(59,231)
(2,533,450)
(3,220,874)
(687,424)
FUND BALANCE JANUARY 1
2,976,783
8,491,406
8,491,406
FUND BALANCE DECEMBER 31
$ 2,917,552 $
5,957,956 $
5,270,532 $
(687,424)
Combining Statements & Schedules, 6-30
2009 Comprehensive Annual Financial Report City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - SOUTH LAKE WASHINGTON INFRASTRUCTURE
For the Year Ended December 31, 2009
ACTUAL BUDGET TO GAAP
BUDGETED AMOUNTS BUDGETARY DIFFERENCES
REVENUES
Intergovernmental revenues
Charges for services
Interest
TOTAL REVENUES
EXPENDITURES
Current:
General government
Economic environment
Capital outlay
Debt service:
Interest payment
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in
Transfer (out)
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
ORIGINAL FINAL
$ $ 347,849 $
1.896.918
ASIS OVER (UNDER)
- $ (347,849)
(190.282) (2.087.200)
2,244,767 (189,756) (2,434,523)
12,500,000 -
- 22,351 - (22,351)
13,666,561 9,565,822 (4,100,739)
- - 8,081 8,081
12,500,000 13,688,912 9,573,903 (4,115,009)
12,500,000 10,350,000 9,677,480 (672,520)
- (5,000) (2,140) (2,860)
12.500.000 10.345.000 9.675.340 (669.660)
(999,478) 202,358 202,358 -
$ (999,478) $ (896,787) $ 114,039 $ 1,010,826
Combining Statements & Schedules, 6-31
2009 Comprehensive Annual Financial Report
COMBINING STATEMENT OF NET ASSETS
NON -MAJOR ENTERPRISE FUNDS
December 31, 2009
Page 1 of 2
ASSETS
Current assets:
Cash & cash equivalents
Investments at fair value
Receivables (net of allowances):
Customer accounts
Interest - investments
Due from other governmental units
Inventory of materials and supplies
Total current assets
Restricted assets:
Cash & cash equivalents
Total restricted assets
Capital assets (net)
Deferred charges and other assets
TOTAL ASSETS
City of Renton, Washington
Combining Statements & Schedules, 6-32
TOTAL
NON -MAJOR
AIRPORT
GOLF COURSE
ENTERPRISE FUNDS
$ 686,082 $
242,012 $
928,094
516,188
514,147
1,030,335
16,180
23,459
39,639
2,471
59,274
61,745
145,101
-
145,101
-
39,628
39,628
1,366,022
878,520
2,244,542
-
441,358
441,358
-
441,358
441,358
13,773,463
8,813,791
22,587,254
-
26,712
26,712
$ 15,139,485 $
10,160,381 $
25,299,866
Combining Statements & Schedules, 6-32
2009 Comprehensive Annual Financial Report City of Renton, Washington
COMBINING STATEMENT OF NET ASSETS
NON -MAJOR ENTERPRISE FUNDS
December 31, 2009
Page 2 of 2
Combining Statements & Schedules, 6-33
TOTAL
NON -MAJOR
AIRPORT
GOLF COURSE
ENTERPRISE FUNDS
LIABILITIES
Current liabilities:
Accounts payable
$ 121,945 $
27,059
$ 149,004
Interfund Loan Payable
475,000
-
475,000
Accrued interest payable
-
9,444
9,444
Accrued employee benefits payable
20,916
36,450
57,366
Accrued taxes payable
34,631
5,484
40,115
Custodial Accounts
-
138,981
138,981
Deferred revenue
67,132
-
67,132
Operating leases payable
-
23,127
23,127
Total current liabilities
719,624
240,545
960,169
Liabilities payable from restricted assets:
Revenue bonds payable - current
-
325,000
325,000
Total liabilities payable from restricted assets
325,000
325,000
Long-term liabilities:
Revenue bonds payable
1,875,000
1,875,000
Unamortized discounts on revenue bonds
-
(181,875)
(181,875)
Accrued employee wages and benefits payable
31,026
73,883
104,909
Operating leases payable
-
10,058
10,058
Total long-term liabilities
31,026
1,777,066
1,808,092
TOTAL LIABILITIES
750,650
2,342,611
3,093,261
NET ASSETS
Investment in capital assets,
net of related debt
13,773,463
6,795,666
20,569,129
Restricted
441,358
441,358
Unrestricted
615,372
580,746
1,196,118
TOTAL NET ASSETS
$ 14,388,835 $
7,817,770
$ 22,206,605
Combining Statements & Schedules, 6-33
2009 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
NON - MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2009
OPERATING REVENUES:
Charges for services
TOTAL OPERATING REVENUES
OPERATING EXPENSES:
Operations and maintenance
Benefit payments
Professional services
Administrative and general
Insurance
Taxes
Depreciation
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES(EXPENSES):
Interest revenues
Other non-operating revenues(expenses)
Interest expense
Amortization of debt discount and expense
NON-OPERATING REVENUE NET OF EXPENSES
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS
Capital Contributions
CHANGE IN NET ASSETS
NET ASSETS, JANUARY 1
NET ASSETS, DECEMBER 31
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
TOTAL
NON -MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
$ 1,254,732 $
2,134,394 $
3,389,126
1,254,732
2,134,394
3,389,126
821,093
1,059,323
1,880,416
136,243
282,864
419,107
55,777
12,039
67,816
324,218
435,935
760,153
52,020
8,670
60,690
439
-
439
475,691
328,764
804,455
1,865,481
2,127,595
3,993,076
12,188
29,343
41,531
36,654
1,469
38,123
-
(140,834)
(140,834)
-
(34,764)
(34,764)
48,842
(144,786)
(95,944)
(137,987)
(561,907)
(699,894)
4,116,551
4,116,551
3,554,644
(137,987)
3,416,657
10,834,191
7,955,757
18, 789,948
C 9a 252f2 9'2S C
7 997 77n C
77 7nr FnS
Combining Statements & Schedules, 6-34
2009 Comprehensive Annual Financial Report
STATEMENT OF CASH FLOWS
NON -MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2009
Page 1 of 2
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services
Cash paid to suppliers for goods & services
Cash paid to employees
Other operating receipts
Other non-operating receipts
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets
Principal payments on debt
Interest payments on debt
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for investments
Interest on investments
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES
NET INCREASE(DECREASE)IN CASH &
CASH EQUIVALENTS
CASH & CASH EQUIVALENTS, JANUARY 1
RESTRICTED CASH, JANUARY 1
CASH , RESTRICTED CASH ,& CASH EQUIVALENTS,
DECEMBER 31
City of Renton, Washington
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
TOTAL
NON -MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
$ 1,227,265 $
2,149,564 $
3,376,829
(1,282,608)
(1,467,920)
(2,750,528)
(129,741)
(267,193)
(396,934)
(89,364)
(383,871)
(89,364)
36,654
(139,365)
(102,711)
(237,794)
275,086
37,292
367,165
(83,315)
283,850
-
(325,000)
(325,000)
-
24,444
24,444
367,165
(383,871)
(16,706)
(16,188)
(205,504)
(221,692)
27,695
22,804
50,499
11,507
(182,700)
(171,193)
140,878
(291,485)
(150,607)
545,204
533,497
1,078,701
-
441,358
441,358
$ 686,082 $
683,370 $
1,369,452
Combining Statements & Schedules, 5-35
2009 Comprehensive Annual Financial Report
STATEMENT OF CASH FLOWS
NON -MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2009
Page 2 of 2
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization of
deferred charges
Other non-operating revenue
(Increase) decrease in
accounts receivable
(Increase) decrease in due from
other funds/governmental units
(Increase) decrease in inventory
& prepaid items
Increase(decrease)in vouchers
retainage payable
Increase(decrease)in payables
& other short-term liabilities
Increase (decrease)in
customer deposits
Increase (decrease)in
deferred revenues
Increase (decrease)in accrued
employee leave benefits
Total adjustments
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Depreciation
Increase in fair value of investments
Net amort. bond prem. discount & bond issue costs
Contributions of capital assets
City of Renton, Washington
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
TOTAL
NON -MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
$ (610,749) $ 6,799 $ (603,950)
475,691
328,764
804,455
36,654
(139,365)
(102,711)
(6,486)
7,241
755
(89,364)
-
(89,364)
106,903
106,903
(39,029)
(36,861)
(75,890)
9,968
(27,898)
(17,930)
-
13,832
13,832
(20,981)
-
(20,981)
6,502
15,671
22,173
372,955
268,287
641,242
$ (237,794) $
275,086 $
37,292
$ 475,691 $ 328,764 $ 804,455
- (182,700) (182,700)
- 34,764 34,764
4,116,551 - 4,116,551
Combining Statements & Schedules, 6-36
2009 Comprehensive Annual Financial Report
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2009
Page 1 of 2
ASSETS
Current assets:
Cash & cash equivalents
Investments at fair value
Receivables (net of allowances):
Customer accounts
Interest - investments
Due from other governmental units
Prepayments
Total current assets
Noncurrent assets:
Capital assets (net)
Total property, plant, and equipment
TOTAL ASSETS
City of Renton, Washington
TOTAL
EQUIPMENT INSURANCE INTERNAL
RENTAL FUND SERVICE FUNDS
$ 3,800,448 $
7,882,554 $
11,683,002
2,859,346
5,930,603
8,789,949
-
15,864
15,864
208,973
144,291
3S3,264
11,905
-
11,905
211,060
55,784
266,844
7,091,732
14,029,096
21,120,828
9,786,522
-
9,786,522
9,786,522
-
9,786,522
$ 16,878,254 $
14,029,096 $
30,907,350
Combining Statements & Schedules, 6-37
2009 Comprehensive Annual Financial Report
LIABILITIES
Current liabilities:
Accounts payable
Retainage payable
Due to other funds
Accrued employee benefits payable
Total current liabilities
Long-term liabilities:
Accrued employee wages and benefits payable
Claims incurred but not reported
Total long-term liabilities
TOTAL LIABILITIES
NET ASSETS
Investment in capital assets,
Net of related debt
Unrestricted
TOTAL NET ASSETS
City of Renton, Washington
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2009
Page 2 of 2
EQUIPMENT
RENTAL
INSURANCE
FUND
TOTAL
INTERNAL
SERVICE FUNDS
$ 254,183 $
512,767 $
766,950
-
2,345
2,345
333,915
7,238
341,153
201,100
16,588
217,688
789,198
538,938
1,328,136
372,227
6,967
379,194
-
2,998,859
2,998,859
372,227
3,005,826
3,378,053
1,161,425
3,544,764
4,706,189
9,786,522 - 9,786,522
5,930,307 10,484,332 16,414,639
$ 15,716,829 $ 10,484,332 $ 26,201,161
Combining Statements & Schedules, 6-38
2009 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2009
OPERATING REVENUES:
Charges for services
Other operating revenues
TOTAL OPERATING REVENUES
OPERATING EXPENSES:
Operations and maintenance
Benefit payments
Professional services
Administrative and general
Insurance
Taxes
Depreciation
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES (EXPENSES):
Intergovernmental revenues
Interest revenues
Gain (loss) on sale of capital assets
Other non-operating revenues (expenses)
NON-OPERATING REVENUE NET OF EXPENSE
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS
Contributed capital
Transfers in
Transfers (out)
CHANGE IN NET ASSETS
NET ASSETS, JANUARY 1
Prior year adjustments
NET ASSETS, DECEMBER 31
TOTAL
EQUIPMENT INSURANCE INTERNAL
RENTAL FUND SERVICE FUNDS
$ 13,353,190 $
2,782,052 $
16,135,242
-
12,508,903
12,508,903
13,353,190
15,290,955
28,644,145
5,063,055
406,811
5,469,866
1,381,250
12, 217,163
13, 598,413
667,452
691,842
1,359,294
3,140,571
7,950
3,148,521
256,459
1,300,194
1,556,653
7,456
1,275
8,731
1,926,354
-
1,926,354
12,442,597
14,625,235
27,067,832
-
54,219
54,219
85,693
279,787
365,480
62,599
-
62,599
12,234
630,299
642,533
160,526
964,305
1,124,831
1,630,025
1,071,119
2,701,144
22,500
-
22,500
199,728
199,728
(20,000)
(5,000,000)
(5,020,000)
1,273,347
(3,369,975)
(2,096,628)
15,488,372
13,854,307
29,342,679
(1,044,890)
-
(1,044,890)
$ 15,716,829 $
10,484,332 $
26,201,161
Combining Statements & Schedules, 6-39
2009 Comprehensive Annual Financial Report
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2009
Page 1 of 2
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from other funds for services
Cash paid to suppliers for goods & services
Cash paid to employees
Other operating receipts
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to/from other funds
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets
Capital contributions
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for investments
Interest on investments
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES
NET INCREASE(DECREASE)IN CASH &
CASH EQUIVALENTS
CASH & CASH EQUIVALENTS, JANUARY 1
CASH & CASH EQUIVALENTS, DECEMBER 31
City of Renton, Washington
EQUIPMENT
RENTAL
INSURANCE
FUND
TOTAL
INTERNAL
SERVICE FUNDS
$ 13,356,476 $
15,288,494 $
28,644,970
(8,696,759)
(5,593,708)
(14,290,467)
(1,104,679)
(12,471,328)
(13,576,007)
74,833
4,054,493
4,129,326
179,728 (5,000,000) (4,820,272)
179,728 (5,000,000) (4,820,272)
(1,183,122) (1,183,122)
22,500 22,500
(1,160,622) (1,160,622)
(1,209,346)
3,713,858
2,504,512
49,194
735,950
785,144
(1,160,152)
4,449,808
3,289,656
1,488,825
727,759
2,216,584
2,311,623
7,154,795
9,466,418
$ 3,800,448 $
7,882,554 $
11,683,002
Combining Statements & Schedules, 6-40
2009 Comprehensive Annual Financial Report
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2009
Page 2 of 2
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization of
deferred charges
Other non-operating revenue
(Increase) decrease in
accounts receivable
(Increase) decrease in due from
other funds/governmental units
(Increase) decrease in inventory
& prepaid items
increase(decrease)in vouchers
retainage payable
Increase (decrease)in payables
& other short-term liabilities
increase(decrease)in accrued
employee leave benefits
Total adjustments
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Prior Period Adjustment
Depreciation & amortization
EQUIPMENT
RENTAL
City of Renton, Washington
TOTAL
INSURANCE INTERNAL
FUND SERVICE FUNDS
1,926,354
-
1,926,354
74,833
684,518
759,351
3,286
(2,461)
825
(4,528)
-
(4,528)
(71,149)
401,290
330,141
108,442
175,679
284,121
334,320
8,660
342,980
347,720
(655,455)
(307,735)
2,719,278
612,231
3,331,509
$ 3,629,871 $
1,277,951 $
4,907,822
$ (1,044,890) $
- $
(1,044,890)
1,926,354
-
1,926,354
Combining Statements & Schedules, 6-41
2009 Comprehensive Annual Financial Report
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND - SPECIAL DEPOSIT
For the Year Ended December 31, 2009
Page 1 of 1
City of Renton, Washington
Combining Statements & Schedules, 6-42
BEGINNING
ENDING
BALANCE
DEBITS
CREDITS
BALANCE
ASSETS
Cash
$
840,466
$
863,310
$ 1,184,883
$ 518,893
Investments at fair value
-
780,800
390,400
390,400
TOTAL ASSETS
$
840,466
$
1,644,110
$ 1,575,283
$ 909,293
LIABILITIES
Vouchers & contacts payable
$
4,375
$
763,676
$ 823,007
$ 63,706
Deposits payable
836,091
864,540
874,036
845,587
TOTAL LIABILITIES
$
840,466
$
1,628,216
$ 1,697,043
$ 909,293
Combining Statements & Schedules, 6-42
2009 Comprehensive Annual Financial Report
STATISTICAL SECTION
December 31, 2009
City of Renton, Washington
Presentations included in the Statistical Section of the Comprehensive Annual Financial Report
(CAFR) provide users detailed information as a context for understanding what the information
in the financial statements, note disclosures and the supporting schedules say about the
government's overall financial health. The section is divided into five categories based on the
following:
FINANCIAL TRENDS
These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time.
REVENUE CAPACITY
These schedules present information to help the reader assess the government's most
significant local revenue source — property tax.
DEBT CAPACITY
These schedules present information to help the reader assess the affordability of the
government's current levels of outstanding debt and the government's ability to issue
additional debt in the future.
DEMOGRAPHIC AND ECONOMIC INFORMATION
These schedules offer demographic and economic indicators to help the reader understand
the environment within which the government's financial activities take place.
OPERATING INFORMATION
These schedules contain service and infrastructure data to help the reader understand how
the information in the government's financial report relates to the services the government
provides and the activities it performs.
Statistical Section, 7-1
2009 Comprehensive Annual Financial Report
TABLE 1
NET ASSETS BY COMPONENT
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Page 1 of 2
FISCAL YEAR
City of Renton, Washington
2003 2004 2005 2006 2007
Governmental activities
Invested in capital assets, net of related debt
$
89,360,313
$
195,282,055
$
203,297,293
$
209,964,556
$
232,714,563
Restricted
6,816,559
21,460,395
28,578,305
42,261,663
32,648,993
Unrestricted
41,699,232
25,746,196
29,272,573
29,340,290
32,075,613
Total governmental activities net assets
$
137,876,104
$
242,488,646
$
261,148,171
$
281,566,509
$
297,439,169
Business -type activities
Invested in capital assets, net of related debt
$
158,886,497
$
163,891,546
$
171,827,746
$
181,515,939
$
188,518,151
Restricted
3,048,210
3,555,690
3,555,690
3,555,690
3,586,667
Unrestricted
15,886,887
21,612,156
21,541,563
19,357,695
17,973,237
Total business -type activities net assets
$
177,821,594
$
189,059,392
$
196,924,999
$
204,429,324
$
210,078,055
Primary government
Invested in capital assets, net of related debt
$
248,246,810
$
359,173,601
$
375,125,039
$
391,480,495
$
421,232,714
Restricted
9,864,769
25,016,085
32,133,995
45,817,353
36,235,660
Unrestricted
57,586,119
47,358,352
50,814,136
48,697,985
50,048,850
Total primary government net assets
$
315,697,698
$
431,548,038
$
458,073,170
$
485,995,833
$
507,517,224
'The City implemented GASB Statement No. 34 during 2003; historical information prior to 2003 is not available.
Source : City of Renton, Finance & IS Deparrtment
Statistical Section, 7-2
2009 Comprehensive Annual Financial Report
TABLE 1
NET ASSETS BY COMPONENT
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Page 2 of 2
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total business -type activities net assets
Primary government
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total primary government net assets
City of Renton, Washington
Fiscal Year
2008 2009
$ 353,197,782 $
378,440,636
33,294,987
20,882,824
34,160,010
35,033,629
$ 420,652,779 $
434,357,089
$ 202,255,997 $
208,682,683
4,171,525
4,029,537
17,430,207
18,209, 611
$ 223,857,729 $
230,921,831
$ 555,453,779 $
587,123,319
37,466,512
24,912,361
51,590,217
53,243,240
$ 644,510,508 $
665,278,920
Statistical Section, 7-3
2009 Comprehensive Annual Financial Report
EXPENSES
Government activities:
General government
Judicial
Security of persons and property
Physical environment
Transportation
Economic development
Mental and physical health
Culture and recreation
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Water
Airport
Solid Waste
Golf
Total business -type activities net assets
Total primary government expenses
PROGRAM REVENUES
Government activities:
Charges for services:
General government charges
Judicial
Security of persons and property
Physical environment
Transportation
Economic environment
Culture and recreation
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Business -type charges
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
Net
Governmental activities
Business -type activities
Total primary government net expense
City of Renton, Washington
TABLE 2
CHANGES IN NET ASSETS
LAST TEN FISCAL YEARS'
(Accrual basis of accounting)
Page 1 of 2
FISCAL YEAR
2003 2004 2005 2006 2007 2008 2009
$ 24,365,244 $
22,144,567 $
21,137,856 $
19,977,086 $
29,112,970 $
12,010,422 $
18,808,404
1,258,956
1,340,655
1,380,816
1,434,134
1,845,031
1,761,665
2,134,283
26,238,548
28,647,443
29,496,791
30,749,762
36,213,120
46,289,454
44,361,089
2,013,239
2,278,445
2,208,340
2,618,832
2,749,417
3,333,471
2,440,801
4,221,713
6,797,356
4,183,880
15,798,138
11,237,287
13,675,581
11,765,835
5,886,795
5,519,929
5,899,796
6,372,118
6,880,687
6,823,426
6,669,911
21,646
228,966
300,171
295,072
301,495
325,066
328,333
8,689,666
10,303,074
9,744,692
9,695,924
11,036,931
17,025,800
16,992,266
1,827,464
1,627,581
1,710,346
1,772,370
2,594,784
2,663,436
2,848,081
74,523,271
78,888,016
76,062,688
88,713,436
101,971,722
103,908,321
106,349,003
22,381,464
23,347,678
25,884,227
27,220,132
28,657,468
32,738,366
35,617,861
1,219,465
936,305
1,226,810
1,196,363
1,396,054
1,733,894
1,865,481
8,516,598
8,558,441
9,327,525
9,706,016
10,606,560
11,518,047
14,143,956
1,831,670
1,933,113
2,132,077
2,056,874
2,277,454
2,334,838
2,303,192
33,949,197
34,775,537
38,570,639
40,179,385
42,937,536
48,325,145
53,930,490
108,472,468
113, 663, 553
114, 633, 327
128,892,821
144,909, 258
152, 233,466
160,279,493_
16,716,472
15,579,366
17,525,244
21,852,465
23,163,645
5,614,638
2,864,232
1,287,901
1,531,773
697,883
831,485
1,169,581
2,420,913
5,176,402
929,780
200,149
247,235
517,151
591,586
550,773
643,970
759,700
837,027
894,750
400,798
999,484
864,581
951,940
1,519,383
1,916,862
1,660,698
1,628,154
1,432,215
2,165,538
3,178,543
4,969,475
4,236,596
4,516,899
4,368,399
7,857,186
4,236,983
1,965,125
1,460,879
1,507,387
1,558,458
1,742,071
1,649,960
1,739,055
2,377,290
3,732,443
6,213,791
4,979,601
4,596,836
5,265,737
9,570,931
11,029,657
1,094,764
1,745,718
1,227,503
5,909,870
4,940,471
18,109,124
16,091,934
32,470,797
33,768,669
33,308,271
41,847,229
47,069,865
45,272,536
44,279,093
37,077,258
38,917,114
40,029,830
40,056,079
45,403,349
44,651,684
50,901,497
222,193
112,616
196,974
77,688
243,537
264,784
46,267
6,600,471
6,583,241
5,101,699
6,317,203
1,761,802
6,888,975
7,556,701
43,899,922
45,612,971
45,328,503
46,450,970
47,408,688
51,805,443
58,504,465
$ 76,370,719 $
79,381,640 $
78,636,774 $
88,298,199 $
94,478,553 $
97,077,979 $
102,783,558
$ (42,052,474) $ (45,119,347) $ (42,754,417) $ (46,866,207) $ (54,901,857) $ (58,635,785) $ (62,069,910)
9,950,725 10,837,434 6,757,864 6,271,585 4,471,152 3,480,298 4,573,975
$ (32,101,749) $ (34,281,913) $ (35,996,553) $ (40,594,622) $ (50,430,705) $ (55,155,487) $ (57,495,935)
Statistical Section, 7-4
2009 Comprehensive Annual Financial Report
GENERAL REVENUES AND OTHER CHANGES
IN NET ASSETS
Governmental activities:
Taxes
Property taxes
Timber taxes
Retail sales taxes
Business taxes
Excise taxes
Penalties and interest
Investment earnings
Miscellaneous
Transfers
Total governmental activities
Business -type activities:
Investment earnings
Miscellaneous
Transfers
Total business -type activities
Total primary government
CHANGES IN NET ASSETS
Governmental activities
Business -type activities
Total primary government
City of Renton, Washington
TABLE 2
CHANGES IN NET ASSETS
LAST TEN FISCAL YEARS'
(Accrual basis of accounting)
Page 2 of 2
FISCAL YEAR
2003 2004 2005 2006 2007 2008 2009
$ 19,520,575 $ 19,578,390 $ 21,523,818 $ 23,600,131 $ 23,106,578 $ 29,381,036 $ 32,300,319
17,334,831
18,281,949
18,910,823
20,869,595
22,749,831
23,190,076
22,065,316
10,895,130
9,957,129
10,643,068
11,219,303
11,962,879
14,945,173
14,876,496
5,449,877
6,751,264
6,938,265
7,718,945
8,236,876
4,362,945
4,923,978
5,415
6,048
49
3,799
33,949
6,477
1,353
1,081,398
1,291,669
1,449,001
3,251,975
3,465,517
2,419,260
1,118,889
312,867
4,346,619
1,958,217
689,243
1,218,889
2,104,133
172,594
(40,000)
(10,304)
(9,300)
(68,446)
-
110,000
(100,000)
54,560,093
60,202,764
61,413,941
67,284,545
70,774,519
76,519,100
75,358,945
242,055
270,605
458,797
881,486
1,041,576
1,120,342
396,957
369,513
119,455
639,646
282,808
135,986
85,493
1,207,689
40,000
10,304
9,300
68,446
-
(110,000)
100,000
651,568
400,364
1,107,743
1,232,740
1,177,562
1,095,835
1,704,646
$ 55,211,661 $
60,603,128 $
62,521,684 $
68,517,285 $
71,952,081 $
77,614,935 $
77,063,591
$ 12,507,619 $ 15,083,417 $ 18,659,524 $ 20,418,338 $ 15,872,662 $ 17,883,315 $ 13,289,035
10,602,293 11,237,798 7,865,607 7,504,325 5,648,714 4,576,133 6,278,621
$ 23,109,912 $ 26,321,215 $ 26,525,131 $ 27,922,663 $ 21,521,376 $ 22,459,448 $ 19,567,656
'The City implemented GASB Statement No. 34 during 2003; historical information prior to 2003 is not available.
Source: City of Renton, Finance & IS Department
Statistical Section, 7-5
2009 Comprehensive Annual Financial Report
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
General fund
Reserved
Unreserved
Total general fund
TABLE 3
FUND BALANCE OF GOVERNMENT FUNDS
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Page 1 of 2
General fund
General fun
City of Renton, Washington
2000 2001 2002 2003
2004 2005
2006 2007 2008
2009
FISCAL YEAR
2000
2001
2002
2003
2004
$ 311,673
$ 318,053
$ 83,000 $
83,000
$ 108,742
8,025,332
6,428,315
3,920,136
6,758,364
8,603,003
$ 8,337,005
$ 6,746,368
$ 4,003,136 $
6,841,364
$ 8,711,745
All other governmental funds
Reserved
Unreserved, reported in:
Special revenue funds
Debt service funds
Capital project funds
Total all other governmental funds
$ - $ 920,000 $ 1,260,000 $ 880,000 $ 500,000
3,898,265 4,938,021 3,361,529 3,985,917 3,238,246
2,653,495 2,546,129 2,030,335 1,916,243 1,486,894
23,570,741 29,133,681 33,742,638 22,628,512 26,202,437
$ 30,122,501 $ 37,537,831 $ 40,394,502 $ 29,410,672 $ 31,427,577
Source : City of Renton, Finance & IS Department
Statistical Section, 7-6
2009 Comprehensive Annual Financial Report
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
City of Renton, Washington
TABLE 3
FUND BALANCE OF GOVERNMENT FUNDS
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Page 2 of 2
All other governmental funds
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
All other governmental funds
Reserved
$ 240,000
$ 63,900
FISCAL YEAR
$ 1,000,000
$ -
Unreserved, reported in:
2005
2006
2007
2008
2009
General fund
2,929,692
4,243,189
2,616,596
2,806,667
2,106,370
Reserved
$ 8,000
$ 8,000
$ 8,000
$ 8,000
$ 8,000
Unreserved
9,189,871
10,737,097
16,474,384
13,509,097
13,478,727
Total general fund
$ 9,197,871
$ 10,745,097
$ 16,482,384
$ 13,517,097
$ 13,486,727
All other governmental funds
Reserved
$ 240,000
$ 63,900
$ 975,000
$ 1,000,000
$ -
Unreserved, reported in:
Special revenue funds
2,929,692
4,243,189
2,616,596
2,806,667
2,106,370
Debt service funds
2,752,445
3,068,587
1,392,915
1,270,936
367,652
Capital project funds
27,890,457
42,152,437
29,057,397
29,217,384
18,408,802
Total all other governmental funds
$ 33,812,594
$ 49,528,113
$ 34,041,908
$ 34,294,987
$ 20,882,824
Statistical Section, 7-7
2009 Comprehensive Annual Financial Report City of Renton, Washington
TABLE 4
CHANGES IN FUND BALANCES OF GOVERNMENT FUNDS
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Page 1 of 2
FISCAL YEAR
Excess of revenues
over (under) expenditures 3,440,336 2,437,275 (3,738,475) (7,630,191) 1,987,607
OTHER FINANCING SOURCES (USES)
Transfers in
2000
2001
2002
2003
2004
REVENUES
(3,662,809)
(8,873,294)
(10,009,962)
(3,551,700)
(7,764,278)
Taxes
$ 47,827,013
$ 50,218,530
$ 49,901,849
$ 53,722,322
$ 55,344,506
Licenses and permits
4,562,892
4,065,518
4,229,501
4,226,883
4,329,086
Intergovernmental
6,793,084
6,129,103
6,212,359
4,533,544
7,570,570
Charges for services
7,805,409
7,301,538
7,777,778
6,016,704
6,593,153
Fines
937,689
993,093
1,043,199
1,055,564
1,008,984
Interfund revenues
-
-
-
3,482,110
3,638,574
Special assessments
352,648
333,056
312,908
295,673
20,852
Contributions
64,092
191,877
118,103
255,102
249,938
Interest
2,307,978
2,583,931
1,073,538
1,081,420
1,059,886
Miscellaneous
727,465
1,231,574
1,198,846
40,314
122,799
Total revenues
71,378,270
73,048,220
71,868,081
74,709,636
79,938,348
EXPENDITURES
General government
10,858,538
11,193,462
12,523,577
13,283,955
13,660,095
Judicial
-
-
-
-
-
Security of persons and property
22,889,748
23,569,864
24,924,380
26,029,354
27,462,613
Physical environment
1,769,642
1,878,956
1,898,665
2,015,562
2,201,777
Transportation
10,330,362
13,885,329
10,622,373
4,461,387
4,615,345
Economic and physical development
4,337,239
4,484,526
4,479,582
4,613,587
4,947,080
Mental and physical health
8,599
6,756
11,445
10,368
11,723
Culture and recreation
6,606,662
7,263,056
7,382,069
7,585,936
8,563,967
Capital outlay
7,450,837
5,359,801
10,532,479
21,089,534
13,246,669
Debt service
Principal
2,481,026
2,086,447
1,849,269
1,417,042
1,477,579
Interest
1,205,281
882,748
1,382,717
1,833,102
1,763,893
Total expenditures
67,937,934
70,610,945
75,606,556
82,339,827
77,950,741
Excess of revenues
over (under) expenditures 3,440,336 2,437,275 (3,738,475) (7,630,191) 1,987,607
OTHER FINANCING SOURCES (USES)
Transfers in
3,694,498
6,850,944
9,441,451
3,511,700
6,563,978
Transfers out
(3,662,809)
(8,873,294)
(10,009,962)
(3,551,700)
(7,764,278)
Proceeds of long-term debt
-
6,023,484
3,879,038
Interfund loan proceeds
823,000
363,800
860,000
Interfund loan repayments
(823,000)
(363,800)
(860,000)
Funds remitted to bond trustee
Capital leases
-
-
-
-
-
Sale of capital assets
1,403,688
61,685
104,825
171,249
117,328
Total other financing
sources (uses)
1,435,377
4,062,819
3,415,352
131,249
(1,082,972)
Net change in fund balances $ 4,875,713 $ 6,500,094 $ (323,123) $ (7,498,942) $ 904,635
Debt service as a percentage of
non capital expenditures 6.09% 4.55% 4.97% 5.31% 5.01%
Source : City of Renton, Finance & IS Department
Statistical Section, 7-8
2009 Comprehensive Annual Financial Report City of Renton, Washington
TABLE 4
CHANGES IN FUND BALANCES OF GOVERNMENT FUNDS
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Page 2 of 2
FISCAL YEAR
Excess of revenues
over (under) expenditures 2,373,896 (498,302) (9,773,136) (2,571,048) (24,854,267)
OTHER FINANCING SOURCES (USES)
Transfers in
2005
2006
2007
2007
2009
REVENUES
(5,443,660)
(3,705,341)
(5,782,988)
(4,200,607)
(10,446,000)
Taxes
$ 58,794,081
$ 64,005,567
$ 66,698,876
$ 72,514,388
$ 71,545,700
Licenses and permits
4,686,608
4,962,507
5,828,230
4,975,585
6,226,371
Intergovernmental
5,687,169
9,769,225
9,791,830
27,549,621
23,968,449
Charges for services
5,563,289
6,543,289
10,048,879
7,145,950
4,543,420
Fines
731,286
906,685
1,150,079
2,002,854
3,724,162
Interfund revenues
3,796,042
2,843,147
3,352,411
3,072,526
3,228,110
Special assessments
23,340
511,932
51,723
-
1,353
Contributions
317,600
214,387
353,582
135,000
516,805
Interest
1,060,353
2,570,682
2,486,889
1,740,035
753,607
Miscellaneous
569,881
223,908
86,322
1,273,359
171,004
Total revenues
81,229,649
92,551,329
99,848,821
120,409,318
114,678,981
EXPENDITURES
5.08%
General government
14,382,634
13,972,592
14,597,355
15,094,140
12,923,999
Judicial
-
-
-
1,761,665
2,134,283
Security of persons and property
29,031,626
31,157,303
35,583,500
45,530,208
46,048,967
Physical environment
2,190,228
2,609,452
2,764,563
3,123,883
2,431,213
Transportation
4,711,924
5,097,449
6,403,358
6,332,006
7,043,665
Economic and physical development
5,123,024
5,519,219
5,896,589
6,673,681
7,071,009
Mental and physical health
12,700
9,231
13,818
16,459
19,726
Culture and recreation
8,876,250
9,933,854
10,830,224
11,119,073
14,914,298
Capital outlay
11,438,104
21,117,525
29,320,023
28,520,453
41,989,793
Debt service
Principal
1,375,738
1,503,350
1,565,904
2,079,551
2,327,138
Interest
1,713,525
2,129,656
2,646,623
2,729,247
2,629,157
Total expenditures
78,855,753
93,049,631
109,621,957
122,980,366
139,533,248
Excess of revenues
over (under) expenditures 2,373,896 (498,302) (9,773,136) (2,571,048) (24,854,267)
OTHER FINANCING SOURCES (USES)
Transfers in
5,476,360
2,962,895
5,782,988
4,053,607
15,059,649
Transfers out
(5,443,660)
(3,705,341)
(5,782,988)
(4,200,607)
(10,446,000)
Proceeds of long-term debt
18,490,029
-
Interfund loan proceeds
-
6,798,085
Interfund loan repayments
-
Funds remitted to bond trustee
Capital leases
-
-
-
Sale of capital assets
464,547
13,464
24,218
20,643
-
Total other financing
sources (uses)
497,247
17,761,047
24,218
(126,357)
11,411,734
Net change in fund balances
$ 2,871,143
$ 17,262,745 $
(9,748,918) $
(2,697,405)
$ (13,442,533)
Debt service as a percentage of
non capital expenditures
4.58%
5.05%
5.25%
5.09%
5.08%
Statistical Section, 7-9
2009 Comprehensive Annual Financial Report
$80
$70
$60
$50
c
0
$40
$30
$20
$10
$0
TABLE 5
GENERAL GOVERNMENT TAX REVENUE BY SOURCE
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
TAX REVENUES BY SOURCE
2000-2009
City of Renton, Washington
O Penalty/Interest
Delinquent Tax
■ Excise Tax
OAdmission/Utility
Tax
0Sales Tax
■ Property Tax
Source: City of Renton, Finance & IS Department
Statistical Section, 7-10
2000 2001
2002 2003
2004 2005
2006 2007 2008
2009
PENALTY /
ADMISSION /
INTEREST
FISCAL
PROPERTY
TIMBER
SALES
UTILITY
EXCISE
DELINQUENT
YEAR
TAX
TAX
TAX
TAX
TAX
TAX
TOTAL
2000
$ 16,397,638
N/A
$ 16,585,478
$ 9,788,167
$ 4,724,682
$ 8,462
$ 47,504,428
2001
16,794,636
N/A
16,724,787
11,105,722
5,066,122
1,939
49,693,206
2002
18,373,237
N/A
16,431,456
9,798,260
4,711,446
4,404
49,318,803
2003
19,587,986
N/A
17,334,831
10,895,131
5,449,877
5,415
53,273,240
2004
19,886,805
N/A
18,281,949
9,957,130
6,751,265
6,048
54,883,197
2005
21,826,229
N/A
18,910,822
10,643,068
6,938,264
49
58,318,433
2006
23,600,131
N/A
20,869,596
11,219,302
7,718,945
3,799
63,411,773
2007
23,106,578
N/A
22,749,831
11,962,879
8,236,876
33,949
66,090,113
2008
29,381,036
N/A
23,190,076
14,945,173
4,362,945
6,477
71,885,707
2009
32,300,319
N/A
22,065,316
14,876,496
4,923,978
1,353
74,167,462
Source: City of Renton, Finance & IS Department
Statistical Section, 7-10
2009 Comprehensive Annual Financial Report
City of Renton, Washington
TABLE 6
$ 842,430,440
PRINCIPAL PROPERTY TAX PAYERS
111,316,800
December 31, 2009
98,478,828
2009
2000
% OF TOTAL
% OF TOTAL
TAXABLE' TAXABLE
TAXABLE TAXABLE
ASSESSED ASSESSED
ASSESSED ASSESSED
TAXPAYER VALUE RANK VALUE
VALUE RANK VALUE
Boeing
$ 842,430,440
Paccar
111,316,800
Puget Sound Energy-Elec/Gas
98,478,828
AMB Property Corp.
61,191,200
Transwestern Harvest Lakeshore
55,735,200
Providence Health
53,706,700
Fred Meyer Stores Inc
51,138,403
Axis Grand Holdings
44,625,000
BRE Properties
40,500,000
ECI Two WTC LLC (WTCTPI LLC)
37,433,000
Pacific NW Group A
100.00% $ 4,545,321,019
University Street Properties
100.00%
US West
24,141,923
Rosche One Int
0.53%
Renton Village Association
Avalon Bay Communities Inc
All Others
11,836,689,209
Total Assessed Valuation
$ 13,233,244,780
Source: 'King County Department of Assessments (2009 taxroll year;
1 6.37%
$ 761,396,292
1
16.75%
2 0.84%
74,938,646
2
1.65%
3 0.74%
74,489,513
3
1.64%
4 0.46%
9
0.39%
17,500,000
5 0.42%
0.39%
89.45% 3,435,734,845
6 0.41%
100.00% $ 4,545,321,019
100.00%
7 0.39%
24,141,923
7
0.53%
8 0.34%
9 0.31%
10 0.28%
45,347,300
4
1.00%
39,014,100
5
0.86%
37,069,300
6
0.82%
17,908,000
8
0.39%
17,781,100
9
0.39%
17,500,000
10
0.39%
89.45% 3,435,734,845
75.59%
100.00% $ 4,545,321,019
100.00%
Statistical Section, 7-11
2009 Comprehensive Annual Financial Report
14,000
12,000
2
E 10,000
a
> 8,000
v
a
6,000
N
Q
4,000
2,000
City of Renton, Washington
TABLE 7
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Page 1 of 2
Total Taxable Assessed Value
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year
FISCAL
YEAR
REAL PROPERTY 1'4
PERSONAL PROPERTY
ENDED
RESIDENTIAL
COMMERCIAL
DECEMBER 31
PROPERTY
PROPERTY
OTHER z
2000 $
2,958,443,598
$ 2,368,630,142
$ 714,803,819
2001
1,703,991,595
2,613,181,185
745,490,732
2002
2,810,986,787
2,008,043,209
774,850,492
2003
2,314,794,930
2,921,180,100
747,879,276
2004
2,598,762,769
3,057,577,700
716,313,413
2005
2,823,407,473
3,217,655,000
656,709,434
2006
3,734,771,858
3,415,317,348
636,713,076
2007
4,201,702,500
3,853,709,290
754,326,325
2008
4,991,068,500
4,292,739,750
828,746,994
2009
8,032,664,400
3,810,422,391
885,490,676
1Source is from TaxTools 4.1 Tax Database
2Source is from King County Department of Assessments
3Unreconciled amounts reflect the variance between source data. The City is working on resolving this
variance for future years.
42009 data reflects Residential and Commercial Property more accurately (prior years excluded some
properties); 2000 - 2008 Total Assessed restated
Statistical Section, 7-12
2009 Comprehensive Annual Financial Report
$4.000
$3.500
$3.000
$2.500
v
$2.000
$1.500
$1.000
$0.500
City of Renton, Washington
TABLE 7
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Page 2 of 2
Direct Tax Rate
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year
FISCAL
TOTAL
YEAR
OTHER 3,4
TOTAL
DIRECT
ENDED
UNRECONCILED
ASSESSED
TAX
DECEMBER 31
PROPERTY
VALUE
RATE z
2000
$
(1,496,556,540)
$
4,545,321,019
$ 3.684
2001
$
(21,760)
$
5,062,641,752
3.375
2002
$
-
$
5,593,880,488
3.354
2003
$
(21,760)
$
5,983,832,546
3.277
2004
$
(21,760)
$
6,372,632,122
3.327
2005
$
-
$
6,697,771,907
3.227
2006
$
(452,325,740)
$
7,334,476,542
3.116
2007
$
(438,936,310)
$
8,370,801,805
2.884
2008
$
(452,877,590)
$
9,659,677,654
2.624
2009
$
504,667,313
$
13,233,244,780
2.369
Statistical Section, 7-13
2009 Comprehensive Annual Financial Report
$4.00000
$3.50000
$3.00000
$2.50000
v
$2.00000
$1.50000
$1.00000
$0.50000
City of Renton, Washington
TABLE 8
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Page 1 of 2
Direct Property Tax Rates
Year
Source: King County Codes and Levies
* Special Districts include Emergency Medical Services, Port and Hospital districts
Statistical Section, 7-14
DIRECT RATES
OVERLAPPING RATES
CITY OF RENTON
COUNTY
Debt
Total
Debt
Total
Fiscal
Operating
Service
City
Operating
Service
County
Year
Millage
Millage
Millage
Millage
Millage
Millage
2000
$ 3.39877
$ 0.28488
$ 3.68365
$ 1.39802
$ 0.29149 $
1.68951
2001
3.27385
0.10078
3.37463
1.47266
0.26981
1.74247
2002
3.26036
0.09397
3.35433
1.19751
0.25198
1.44949
2003
3.18871
0.08865
3.27736
1.15386
0.19562
1.34948
2004
3.16022
0.08322
3.24344
1.18279
0.24867
1.43146
2005
3.14843
0.07861
3.22704
1.15665
0.22564
1.38229
2006
3.04482
0.07088
3.11570
1.09915
0.22954
1.32869
2007
2.82148
0.06252
2.88400
1.08814
0.20142
1.28956
2008
2.57052
0.05330
2.62382
1.04278
0.16492
1.20770
2009
2.36923
-
2.36923
0.95271
0.14501
1.09772
Source: King County Codes and Levies
* Special Districts include Emergency Medical Services, Port and Hospital districts
Statistical Section, 7-14
2009 Comprehensive Annual Financial Report
$7.00000
$6.00000
$5.00000
$4.00000
OA
co
$3.00000
$2.00000
$1.00000
City of Renton, Washington
TABLE 8
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Page 2 of 2
Overlapping Property Tax Rates
Year
OVERLAPPING RATES
SCHOOL DISTRICT
Debt Total Total
Fiscal Special Operating Service School Overlapping
Year Districts * Millage Millage Millage Rates
Total
Direct &
Overlapping
Rates
2000
$ 0.60714 $
1.85286 $
1.80111 $
3.65397 $
5.95062 $
9.63427
2001
0.53526
1.74147
1.62522
3.36669
5.64442
9.01905
2002
0.53599
1.63516
1.47772
3.11288
5.09836
8.45269
2003
0.59292
1.62358
1.36333
2.98691
4.92931
8.20667
2004
0.58319
1.60492
1.88086
3.48578
5.50043
8.74387
2005
0.57542
1.62332
2.36918
3.99250
5.95021
9.17725
2006
1.04312
1.53290
2.42680
3.95970
6.33151
9.44721
2007
0.99431
1.40073
2.04586
3.44659
5.73046
8.61446
2008
1.03213
1.26082
1.36572
2.62654
4.86637
7.49019
2009
0.94245
1.42951
1.71049
3.14000
5.18017
7.54940
Statistical Section, 7-15
2009 Comprehensive Annual Financial Report
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
FISCAL
YEAR
ENDED
DECEMBER 31
TABLE 9
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Page 1 of 2
Levies vs Collections
C3TOTALTAX 0 TOTAL COLLECTIONS TO DATE
City of Renton, Washington
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
TOTAL TAX COLLECTED WITHIN THE 1
LEVY FOR FISCAL YEAR OF THE LEVY
FISCAL YEAR AMOUNT % OF LEVY
2000
$ 16,633,388 $
16,337,790
98.2%
2001
16,967,683
16,677,882
98.3%
2002
18,581,814
18,285,908
98.4%
2003
19,486,858
19,149, 258
98.3%
2004
20,451,011
20,184, 238
98.7%
2005
21,654,069
21,358,689
98.6%
2006
22,796,225
22,339,299
98.0%
2007
24,049,060
23,585,143
98.1%
2008
27,188,522
26,722,301
98.3%
2009
31,058,589
30,249,856
97.4%
Sources:
1 Annual Tax Receivable Summary
Z 2009 Annual Property Tax Reports from King County
Statistical Section, 7-16
2009 Comprehensive Annual Financial Report
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
City of Renton, Washington
TABLE 9
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Page 2 of 2
Property tax collections
—*—Collections within fiscal yr
f Collections in subsequent years
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
FISCAL
YEAR
COLLECTIONS z
ENDED
IN SUBSEQUENT
TOTAL COLLECTIONS
TO DATE
DECEMBER 31
YEARS
AMOUNT
% OF LEVY
2000
$ 295,598
$ 16,633,388
100.0%
2001
289,759
16,967,641
100.0%
2002
283,496
18,569,404
99.9%
2003
333,147
19,482,405
100.0%
2004
265,700
20,449,938
100.0%
2005
293,638
21,652,327
100.0%
2006
452,161
22,791,460
100.0%
2007
422,575
24,007,718
99.8%
2008
315,994
27,038,295
99.4%
2009
N/A
30,249,856
97.4%
Statistical Section, 7-17
2009 Comprehensive Annual Financial Report
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
TABLE 10
SALES TAX COLLECTIONS BY SECTOR
LAST TEN FISCAL YEARS
Page 1 of 2
Sales Tax Collections by Sector
2000-2004
City of Renton, Washington
❑ Retail
■ Construction
❑ Manufacturing
2000 2001 2002 2003 2004
FISCAL YEAR
2000 2001 2002 2003 2004
FUNCTION
RETAIL TRADE SECTOR
Furniture
$ 1,564,002
$ 1,920,734
$ 1,623,906
$ 1,758,082
$ 2,205,114
Electronics and Appliances
348,439
426,965
547,333
754,501
556,555
General Merchandise
581,268
643,592
673,164
788,699
1,013,876
Misc Retail Trade
713,017
704,420
681,148
763,596
862,919
Others
1,641,879
1,608,082
1,622,166
1,667,483
1,651,782
Subtotal Retail
4,500,166
4,876,828
4,600,384
4,977,860
5,733,691
OTHER SECTORS
Construction
1,671,621
2,060,061
1,899,005
2,122,560
2,641,907
Manufacturing
348,439
426,965
547,333
754,501
556,555
Transportation
768,421
648,177
621,314
563,863
628,918
Wholesale
1,643,207
1,535,709
1,451,387
1,442,263
1,416,559
Automotive
3,775,582
3,307,794
3,549,973
3,625,878
3,538,502
Services
2,128,373
1,913,630
1,835,039
1,953,254
1,677,315
Miscellaneous
428,379
574,268
546,400
567,225
460,372
Subtotal - Other Sectors
10,764,022
10,466,604
10,450,451
11,029,544
10,920,128
Total Sales Tax
$ 15,264,188
$ 15,343,432
$ 15,050,835
$ 16,007,404
$ 16,653,819
1 Transportation category has been merged with Miscellaneous. Certain group codes have been shifted around to better reflect the
category they truly represent. (The shift will not affect the total sales tax collected.)
Source: Finance Department, City of Renton
Statistical Section, 7-18
2009 Comprehensive Annual Financial Report
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
TABLE 10
SALES TAX COLLECTIONS BY SECTOR
LAST TEN FISCAL YEARS
Page 2 of 2
City of Renton, Washington
Sales Tax Collections by Sector
O Retail
2005-2009
■Construction
0 Manufacturing
2005 2006 2007 2008 2009
EWholesale
DAutornotive
MServices
OMiscellaneous
FISCAL YEAR
Construction
2005
2006
20071
2008
2009
FUNCTION
569,269
797,166
983,110
1,050,789
950,113
RETAIL TRADE SECTOR
FiM
567,401
Furniture
$ 1,203,942
$ 1,276,644
$ 1,245,901
$ 1,199,045
$ 1,065,605
-I
1,065,416
1,130,621
1,143,188
1,137,586
MON
11
General Merchandise
11
IMF,
1�1
INT
I
2005 2006 2007 2008 2009
OTHER SECTORS
FISCAL YEAR
Construction
2005
2006
20071
2008
2009
FUNCTION
569,269
797,166
983,110
1,050,789
950,113
RETAIL TRADE SECTOR
494,866
567,401
Furniture
$ 1,203,942
$ 1,276,644
$ 1,245,901
$ 1,199,045
$ 1,065,605
Electronics and Appliances
1,065,416
1,130,621
1,143,188
1,137,586
1,036,569
General Merchandise
1,073,144
1,100,217
1,169,225
1,462,858
1,573,716
Misc Retail Trade
848,834
928,083
658,429
756,662
625,320
Others
2,227,721
2,464,896
1,378,094
1,574,482
1,538,600
Subtotal Retail
6,419,057
6,900,461
5,594,837
6,130,633
5,839,810
OTHER SECTORS
Construction
2,495,684
2,688,902
3,898,202
4,725,533
2,991,530
Manufacturing
569,269
797,166
983,110
1,050,789
950,113
Transportation
494,866
567,401
Wholesale
1,025,132
1,016,468
1,083,059
1,131,445
915,885
Automotive
3,946,163
4,303,221
4,176,747
3,575,928
3,215,641
Services
1,736,569
2,039,090
4,103,240
3,939,201
3,616,076
Miscellaneous
421,715
378,233
503,000
402,360
466,785
Subtotal- Other Sectors
10,689,398
11,790,482
14,747,358
14,825,256
12,156,029
Total Sales Tax $ 17,108,455 $ 18,690,943 $ 20,342,195 $ 20,955,889 $ 17,995,840
Statistical Section, 7-19
2009 Comprehensive Annual Financial Report
TABLE 11
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Page 1 of 2
Primary Government Debt
2009
OTHER LONG TERM
DEBT (Bus)
7%
REVENUE BONDS
32%
GENERAL
OBLIGATION BONDS
30%
OTHER LONG TERM
DEBT(Gov)
31%
City of Renton, Washington
K•�•�a:�nui�►rre��e��r►•irn� :i��yiu�x�r���:re�.�r►•irri��
Source: City of Renton, Finance & IS Department
1The percentage of Personal Income column is based on personal income of King County. (See Table 16)
22000-2005 totals are restated.
Statistical Section, 7-20
GENERAL
SPECIAL
OTHER
FISCAL
OBLIGATION
ASSESSMENT
LONG TERM
OTHER LONG
YEAR
BONDS
BONDS
DEBT
REVENUE BONDS
TERM DEBT
2000
$ 24,345,738
$ 320,000
$
$ 25,020,000
$ 8,732,397
2001
29,289,290
135,000
23,070,000
7,940,013
2002
33,797,023
-
31,230,000
8,229,373
2003
32,245,982
29,070,000
7,637,552
2004
30,629,403
-
37,680,000
8,384,138
2005
29,107,664
-
35,790,000
11,589,789
2006
45,584,314
-
33,840,000
10,716,520
2007
44,017,551
-
33,405,000
9,878,951
2008
41,938,000
-
43,310,000
8,968,894
2009
38,480,000
-
38,973,547
41,110,000
8,284,962
Source: City of Renton, Finance & IS Department
1The percentage of Personal Income column is based on personal income of King County. (See Table 16)
22000-2005 totals are restated.
Statistical Section, 7-20
2009 Comprehensive Annual Financial Report
140,000,000
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
City of Renton, Washington
TABLE 11
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Page 2 of 2
Primary Government Debt
Notal Debt
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Years
FISCAL
YEAR
TOTAL PRIMARY
GOVERNMENT
DEBT
PERCENTAGE)
OF
PERSONAL
INCOME
POPULATION
DEBT PER
CAPITA
2000
58,418,135
8.64%
50,052
$ 1,167
2001
60,434,303
7.56%
51,140
1,182
2002
73,256,396
7.86%
53,840
1,361
2003
68,953,534
9.40%
54,900
1,256
2004
76,693,541
8.71%
55,360
1,385
2005
76,487,453
8.68%
56,840
1,346
2006
90,140,834
8.59%
58,360
1,545
2007
87,301,502
8.17%
60,290
1,448
2008
94,216,894
8.60%
78,780
1,196
2009
126,848,509
N/A
83,650
1,516
Statistical Section, 7-21
2009 Comprehensive Annual Financial Report
Debt Limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
City of Renton, Washington
TABLE 12
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Page 1 of 2
FISCAL YEAR
2000
2001
2002
2003
2004
$ 340,899,076
$ 379,698,131
$ 419,541,037
$ 448,787,441
$ 477,947,409
22,248,983
27,586,389
32,258,499
28,173,327
28,137,536
$ 318,650,093
$ 352,111,742
$ 387,282,538
$ 420,614,114
$ 449,809,873
Source: City of Renton, Finance & IS Department
6.53% 7.27% 7.69% 6.28% 5.89%
Statistical Section, 7-22
2009 Comprehensive Annual Financial Report City of Renton, Washington
TABLE 12
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Page 2 of 2
Statistical Section, 7-23
FISCAL YEAR
2005 2006 2007 2008
2009
Debt Limit
$ 502,332,893 $ 550,085,741 $ 627,810,135 $ 724,475,824
$ 992,493,359
Total net debt applicable to limit
26,423,667 42,515,728 $ 42,624,636 40,667,064
77,085,895
Legal debt margin
$ 475,909,226 $ 507,570,013 $ 585,185,499 $ 683,808,760
$ 915,407,464
Total net debt applicable to the limit
as a percentage of debt limit
5.26% 7.73% 6.79% 5.61%
7.77%
LEGAL DEBT MARGIN CALCULATION FOR FISCAL YEAR 2009
Assessed Value
$ 13,233,244,780
Add back: exempt real property
Total assessed value
13,233,244,780
Debt Limit
2.5% of general purpose limit, voted and non -voted
330,831,120
2.5% Utility purpose limit, voted
330,831,120
2.5% Open Space, Park and Capital facilities, voted
330,831,120
Total Debt Limit
992,493,359
Debt applicable to limit:
General Obligation Bonds
38,480,000
Other Long Term Debt
38,973,547
77,453,547
Less: Amount set aside for repayment of
general obligation debt and contracts payable
(367,652)
Total net debt applicable to limit
77,085,895
Legal Debt Margin
$ 915,407,464
Statistical Section, 7-23
2009 Comprehensive Annual Financial Report
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
City of Renton, Washington
TABLE 13
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
General Obligation Bond Debt
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source
1 Finance Department, City of Renton
Z King County Department of Assessments (2009 taxroll year)
3 2000-2005 values have been restated
Statistical Section, 7-24
LESS:
NET
% OF GO BOND
GENERALI
AMOUNTSI
GENERAL
DEBTTO
FISCAL
OBLIGATION
AVAILABLE
OBLIGATION
ASSESSED 2,3
ASSESSED
PER
YEAR
BONDS
IN DEBT
BOND DEBT
VALUE
VALUE
CAPITA
2000
$ 24,345,738
$ 2,096,755
$ 22,248,983
$
4,545,321,019
0.49%
$ 445
2001
29,289,290
1,770,724
27,518,566
$
5,062,641,752
0.54%
538
2002
33,797,023
1,540,203
32,256,820
$
5,593,880,488
0.58%
599
2003
32,245,982
1,879,654
30,366,328
$
5,983,832,546
0.51%
553
2004
30,629,403
1,440,509
29,188,894
$
6,372,632,122
0.46%
527
2005
29,107,664
2,683,999
26,423,665
$
6,697,771,907
0.39%
465
2006
45,584,314
3,068,587
42,515,727
$
7,334,476,542
0.58%
729
2007
44,017,551
1,392,915
42,624,636
$
8,370,801,805
0.51%
707
2008
41,938,000
1,270,936
40,667,064
$
9,659,677,654
0.42%
516
2009
38,480,000
367,652
38,112,348
$
13,233,244,780
0.29%
456
Source
1 Finance Department, City of Renton
Z King County Department of Assessments (2009 taxroll year)
3 2000-2005 values have been restated
Statistical Section, 7-24
2009 Comprehensive Annual Financial Report
City of Renton, Washington
TABLE 14
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
Share of Overlapping Debt
Port of Seattle
4%
Others
.As A� 1%
Schools
69% iwRenton
13%
GOVERNMENTAL UNIT
City of Renton Direct Debt
City of Renton Overlapping Debt
King County
Port of Seattle
Renton School District #403
Issaquah School District #411
Kent School District #415
Fire District 10-1
Fire District 40-1
King County Library
City of Renton Overlapping Debt
Total Direct and Overlapping Debt
Sources
1 King County Department of Executive Services
Z King County Department of Assessments
County
13%
Statistical Section, 7-25
ESTIMATED
ESTIMATED Z
SHARE OF
DEBT 1
%
OVERLAPPING
OUTSTANDING
APPLICABLE
DEBT
$ 38,480,000
100%
$
38,480,000
$ 1,045,977,000
3.48%
$
36,400,000
357,315,000
3.48%
12,434,562
275,960,290
68.95%
190,274,620
311,105,399
2.51%
7,808,746
233,140,531
0.69%
1,607,271
0
0.00%
-
1,027,682
40.09%
412,012
129,221,246
1.51%
1,951,241
$
250,888,451
$
289,368,451
Statistical Section, 7-25
2009 Comprehensive Annual Financial Report
4.00
REVENUE1
3.50
NET REVENUE
AVAILABLE FOR
DEBT SERVICE
DEBT SERVICE
PRINCIPAL INTEREST
2.93
3.00
O
P:
2.50
$ 23,682,511
$ 15,653,774
$ 8,028,737
LU
2.00
$ 1,112,778
Q
2001
z
16,051,720
LU 1.50
1,730,000
1,019,923
O
2002
U
17,495,472
1.00
1,805,000
TABLE 15
PLEDGED -REVENUE COVERAGE
LAST TEN FISCAL YEARS
WATER/SEWER & GOLF COURSE REVENUE BONDS
3.61
3.49
2.16 1
2.40 3.07
2.04 1.38
1.98
-F WATER/SEWER
0.50 - -0-- GOLF COURSE
0.00
1.67
2.901 2.86
1.39
1.25
City of Renton, Washington
3.01
2.17
1.28
-. 1.10
0.83
2000 2001 2002 2003 2004 2005 2006 2007 2008* 2009
YEARS
FISCAL
YEAR
REVENUE1
EXPENSES
W/O
DEPRECIATION
NET REVENUE
AVAILABLE FOR
DEBT SERVICE
DEBT SERVICE
PRINCIPAL INTEREST
COVERAGE
WATER AND SEWER REVENUE BONDS:
2000
$ 23,682,511
$ 15,653,774
$ 8,028,737
$ 1,630,000
$ 1,112,778
2.93
2001
21,994,245
16,051,720
5,942,525
1,730,000
1,019,923
2.16
2002
24,045,660
17,495,472
6,550,188
1,805,000
928,303
2.40
2003
25,934,120
16,990,519
8,943,601
1,635,000
1,282,115
3.07
2004
27,301,230
18,325,863
8,975,367
1,475,000
1,010,268
3.61
2005
27,889,360
18,892,824
8,996,536
1,630,000
1,477,124
2.90
2006
27,750,508
18,850,225
8,900,283
1,680,000
1,430,199
2.86
2007
32,887,272
22,020,642
10,866,630
1,740,000
1,373,036
3.49
2008°
32,152,413
23,766,437
8,385,976
1,810,000
1,803,687
3.01
2009
34,795,614
26,894,033
7,901,581
1,890,000
1,758,589
2.17
GOLF COURSE REVENUE BONDS 3:
2000
$ 2,328,044
$ 1,320,681
$ 1,007,363
$ 210,000
$ 227,222
2.30
2001
2,375,997
1,480,024
895,973
220,000
219,348
2.04
2002
2,279,361
1,415,674
863,687
225,000
210,548
1.98
2003
2,177,122
1,573,296
603,826
235,000
201,210
1.38
2004
2,198,597
1,460,445
738,152
250,000
191,223
1.67
2005
2,208,335
1,657,294
551,041
260,000
180,348
1.25
2006
2,337,672
1,725,854
611,818
270,000
168,778
1.39
2007
2,333,955
1,770,684
563,271
285,000
156,358
1.28
2008*
2,310,869
1,827,810
483,059
295,000
142,820
1.10
2009
2,163,737
1,798,831
364,906
310,000
128,513
0.83
1Revenue includes connection charges, system development charges, latecomer fees, and interest revenue.
2Bond financing requirements are that the average annual coverage is at least 1.3 times the average annual
debt service for Water and Sewer revenue bonds. The Golf System revenue bonds coverage requirement is at
least 1.25 times that of respective calendar year's annual debt service.
31999 Golf System Refunding Revenue Bonds were issued to refund the 1994 Golf System Revenue Bonds.
°2008 totals have been restated.
Source: City of Renton, Finance & IS Department
Statistical Section, 7-26
2009 Comprehensive Annual Financial Report
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
City of Renton, Washington
TABLE 16
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
UNEMPLOYMENT RATE
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
PER CAPITA
PERSONAL PERSONAL SCHOOL UNEMPLOYMENT
POPULATION 1 INCOME Z INCOME 3 ENROLLMENT 5 RATE 6
FISCAL MEDIAN
YEAR KING COUNTY RENTON KING COUNTY KING COUNTY AGE 4 CITY OF RENTON KING COUNTY
2000
1,737,046
50,052
$ 77,271,598,000 $
2001
1,758,312
51,140
76,883,017,000
2002
1,774,312
53,840
77,940,608,000
2003
1,779,300
54,900
79,199,166,000
2004
1,788,300
55,360
88,407,884,000
2005
1,808,300
56,840
89,032,307,000
2006
1,835,300
58,360
97,750,314,000
2007
1,861,300
60,290
106,805,239,000
2008
1,884,200
78,780
109,551,329,000
2009
1,909,300
83,650
N/A
Sources
1Washington State Office of Financial Management
2U.S. Bureau of Economic Analysis.
3U.S. Bureau of Economic Analysis.
4Washington State Office of Financial Management
5Renton Public Schools
6Washington State Employment Security Department
44,424
35.70
12,527
4.1%
43,764
35.92
12,556
5.1%
44,217
36.13
12,892
6.1%
44,800
36.38
13,046
6.2%
49,670
36.60
13,062
5.2%
49,488
36.83
13,192
4.7%
53,488
36.93
13,397
4.2%
57,710
36.97
13,570
3.7%
58,141
37.00
13,836
4.2%
N/A
37.08
13,977
6.8%
Statistical Section, 7-27
2009 Comprehensive Annual Financial Report
TABLE 17
PRINCIPAL EMPLOYERS
City of Renton, Washington
Source: 'Business license records and individual inquiries
Note: The table does not include non-profit organizations.
Statistical Section, 7-28
2009
2000
% OF TOTAL
% OF TOTAL
CITY
CITY
EMPLOYER
EMPLOYEES'
RANK
EMPLOYMENT
EMPLOYEES
RANK
EMPLOYMENT
Boeing Company
13,169
1
30.30%
19,058
1
41.62%
Valley Medical Center
1,877
2
4.32%
2,351
2
5.13%
Renton School District
1,448
3
3.33%
1,242
3
2.71%
Federal Aviation Administration
1,400
4
3.22%
819
5
1.79%
Renton Technical College
858
5
1.97%
City of Renton
819
6
1.88%
655
7
1.43%
Providence Health and Services
815
7
1.87%
Paccar Inc
714
8
1.64%
1,112
4
2.43%
ER Solutions Inc
521
9
1.20%
Wal Mart Stores Inc
322
10
0.74%
Multiple Zones International
661
6
1.44%
Wizards of the Coast
625
8
1.37%
HomeGrocers.Com Inc.
332
9
0.73%
Ikea -Seattle
330
10
0.72%
21,942
50.49%
27,185
59.38%
Source: 'Business license records and individual inquiries
Note: The table does not include non-profit organizations.
Statistical Section, 7-28
2009 Comprehensive Annual Financial Report
This page intentionally left blank.
City of Renton, Washington
Statistical Section, 7-29
2009 Comprehensive Annual Financial Report
City of Renton, Washington
TABLE 18
FULL TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Page 1 of 2
FISCAL YEAR
Source: City of Renton, Finance & IS Department
1 In 2008, development services moved from public works to community and economic development which is listed
under general government.
Z In 2009, increase in Administrative, Judicial & Legal Services includes moving Legal Services in-house and creation of
a Communications Division which was a reorganization of staffing from the Finance and Information Services
Department and the Mayors Office.
Statistical Section, 7-30
2000
2001
2002
2003
2004
FUNCTION
General Government
90.1
93.5
97.5
96.5
97.5
Public Safety
Police
Commissioned Officers
85.0
86.0
88.0
88.0
89.0
Non -Commissioned Officers
34.2
36.2
40.2
40.2
41.2
Fire
Commissioned Officers
105.0
105.0
105.0
105.0
106.0
Non -Commissioned Officers
11.0
11.0
12.0
12.0
13.0
Planning/Building/Public Works
Administration/Development Services
42.7
42.7
42.7
42.7
42.7
Transportation Systems
33.0
33.0
34.0
33.0
34.5
Utility Systems
20.7
20.8
20.8
20.8
20.8
Maintenance Services
59.5
61.0
61.0
62.0
62.0
Culture and Recreation
Parks and Recreation
78.5
80.5
77.5
77.5
77.5
Library
15.0
15.0
15.0
15.0
15.0
Golf Course
9.0
10.0
10.0
10.0
10.0
Total
583.7
594.7
603.7
602.7
609.2
Source: City of Renton, Finance & IS Department
1 In 2008, development services moved from public works to community and economic development which is listed
under general government.
Z In 2009, increase in Administrative, Judicial & Legal Services includes moving Legal Services in-house and creation of
a Communications Division which was a reorganization of staffing from the Finance and Information Services
Department and the Mayors Office.
Statistical Section, 7-30
2009 Comprehensive Annual Financial Report
City of Renton, Washington
TABLE 18
FULL TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Page 2 of 2
Statistical Section, 7-31
FISCAL YEAR
2005
2006
2007
2008
2009
FUNCTION
General Government
94.5
89.5
95.0
155.6
163.8
Public Safety
Police
Commissioned Officers
91.0
97.0
122.0
124.0
121.0
Non -Commissioned Officers
43.2
42.2
49.2
51.2
46.4
Fire
Commissioned Officers
106.0
106.0
109.0
118.0
137.0
Non -Commissioned Officers
13.0
14.0
16.0
17.0
18.0
Planning/Building/Public Works
Administration/Development Services
42.5
46.5
49.0
4.0
3.5
Transportation Systems
34.5
35.5
40.5
41.0
37.0
Utility Systems
20.8
24.8
29.3
36.7
37.7
Maintenance Services
62.0
64.1
71.0
88.0
83.0
Culture and Recreation
-
Parks and Recreation
76.5
76.5
81.0
89.5
86.3
Library
14.0
14.0
15.0
15.0
16.0
Golf Course
10.0
10.0
10.0
10.0
9.5
Total
608.0
620.0
687.0
750.0
759.2
Statistical Section, 7-31
2009 Comprehensive Annual Financial Report City of Renton, Washington
TABLE 19
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Page 1 of 2
Source: City of Renton Departments
Statistical Section, 7-32
FISCAL YEAR
2000
2001
2002
2003
2004
FUNCTION
Police
Physical arrests
2,463
3,411
3,813
3,735
4,280
Parking violations
5,955
6,325
4,776
2,742
3,733
Traffic violations
12,188
10,936
11,448
11,651
10,963
Fire
Number of calls answered
7,895
8,273
8,233
8,582
8,984
Inspections
2,265
2,269
2,261
2,681
2,539
Highways and Streets
Street resurfacing (miles)
1.76
6.54
6.13
4.85
3.67
Recyclables collected (tons/yr)
5,493.8
5,793.6
5,119.8
4,389.0
4,920.3
Culture and Recreation
Athletic field attendence
87,000
119,422
126,534
137,811
156,707
Community Center admissions
156,500
174,500
162,970
172,911
172,537
Library
Volume in collections
147,818
148,758
155,463
158,676
165,406
Total volumes borrowed
352,334
382,443
456,982
499,792
512,059
Water
Metered connection
14,224
13,969
14,583
15,181
15,379
Average daily consumption
7,457
7,097
7,232
7,581
7,635
(thousands of gallons)
Peak daily consumption
13,590
11,960
12,477
14,080
14,248
(thousands of gallons)
Source: City of Renton Departments
Statistical Section, 7-32
2009 Comprehensive Annual Financial Report City of Renton, Washington
TABLE 19
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Page 2 of 2
Statistical Section, 7-33
FISCAL YEAR
2005
2006
2007
2008
2009
FUNCTION
Police
Physical arrests
4,590
2,489
2,925
3,580
3,748
Parking violations
3,575
3,520
5,995
5,117
6,795
Traffic violations
12,866
10,172
9,148
10,705
17,031
Fire
Number of calls answered
9,202
10,096
10,159
12,402
12,840
Inspections
3,438
3,505
3,197
2,772
2,968
Highways and Streets
Street resurfacing (miles)
3.69
3.86
1.59
2.59
3.08
Recyclables collected (tons/yr)
4,934.2
4,843
5,004
5,395
9,653
Culture and Recreation
Athletic field participants
155,000
155,000
91,053
93,000
93,000
Community Center participants
177,761
177,761
162,476
155,000
150,000
Library
Volume in collections
190,011
193,965
188,359
194,497
187,454
Total volumes borrowed
491,470
464,333
491,397
554,223
620,981
Water
Metered connection
16,585
16,668
16,958
17,172
17,295
Average daily consumption
7,306
7,999
8,008
7,388
7,585
(thousands of gallons)
Peak daily consumption
13,025
15,271
14,750
12,739
14,814
(thousands of gallons)
Statistical Section, 7-33
2009 Comprehensive Annual Financial Report City of Renton, Washington
TABLE 20
CAPITAL ASSETS STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Page 1 of 2
Source: City of Renton Departments
Statistical Section, 7-34
FISCAL YEAR
2000
2001
2002
2003
2004
FUNCTION
Police safety
Police:
Stations
1.0
1.0
1.0
1.0
1.0
Patrol units
7.0
7.0
7.0
7.0
7.0
Fire stations
5.0
5.0
5.0
5.0
5.0
Highways and streets
Street (miles)
195.4
195.6
213.2
213.7
213.7
Streetlights (added)
69.0
75.0
53.0
120.0
92.0
Culture and recreation
Parks acreage
1,158.0
1,158.0
1,158.0
1,158.0
1,158.0
Parks
28.0
26.0
26.0
26.0
26.0
Swimming pools
-
-
-
-
1.0
Tennis courts
17.0
17.0
17.0
17.0
17.0
Community centers
1.0
1.0
1.0
1.0
1.0
Water
Water mains (miles)
278.0
283
289.0
291.0
291.1
Fire hydrants
2,993
3,102
3,193
3,240
3,274
Sewer
Sanitary sewers (miles)
162.6
168.1
176.7
183.5
189.6
Storm sewers (miles)
183.8
189.7
199.4
204.0
209.7
Source: City of Renton Departments
Statistical Section, 7-34
2009 Comprehensive Annual Financial Report City of Renton, Washington
TABLE 20
CAPITAL ASSETS STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Page 2 of 2
Statistical Section, 7-35
FISCAL YEAR
2005
2006
2007
2008
2009
FUNCTION
Police safety
Police:
Stations
1.0
1.0
1.0
1.0
1.0
Patrol units
7.0
7.0
7.0
10.0
10.0
Fire stations
5.0
5.0
5.0
6.0
6.0
Highways and streets
Street (miles)
218.0
224.6
233.7
263.8
263.8
Streetlights
86.0
134.0
213.0
230.0
368.0
Culture and recreation
Parks acreage
1,158.0
1,160.0
1,160.0
1,181.0
1,186.9
Parks
26.0
26.0
28.0
29.0
29.0
Swimming pools
1.0
1.0
1.0
1.0
1.0
Tennis courts
17.0
17.0
17.0
17.0
17.0
Community centers
1.0
1.0
1.0
1.0
1.0
Water
Water mains (miles)
293.0
295.0
300.0
304.0
305.0
Fire hydrants
3,374
3,440
3,544
3,602
3,624
Sewer
Sanitary sewers (miles)
193.3
204.9
206.3
215.7
216.4
Storm sewers (miles)
214.8
219.7
222.3
267.5
273.8
Statistical Section, 7-35
2009 Comprehensive Annual Financial Report
This page intentionally left blank.
City of Renton, Washington
Statistical Section, 7-36