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HomeMy WebLinkAbout2008 CAFR® City of ti�Y o� O � City of Renton, Washington Comprehensive Annual Financial Report For the year ended December 31, 2008 rentonwa.gov RENTON AHEAD OF THE CURVE Y ♦a\=LL /1 CITY OF RENTON II: COMPREHENSIVE ANNUAL FINANCIAL REPORT For Year Ended December 31, 2008 Iwen Wang, Administrator Michael Bailey, Former Administrator Linda M. Parks, CPA, CGFM, Fiscal Services Director Finance and Information Services City of Renton 1055 South Grady Way Renton, Washington 98057 (425) 430-6858 Website: www.rentonwa.gov ACKNOWLEDGEMENTS Prepared by the Finance Division of the Finance and Information Services Department Finance and IS Administrator Iwen Wang Fiscal Services Director Linda M. Parks, CPA, CGFM Accounting Staff Janee Hall, Finance Analyst II Tina Hemphill, Finance Analyst III Jill Masunaga, Senior Finance Analyst Greg Nelson, Finance Intern Hai Nguyen, Finance Analyst II Kristi Rowland, Senior Finance Analyst Tracy Schuld, Accounting Supervisor Vidya Vinod, Finance Analyst III Nancy Violante, Financial Services Manager Cindy Zinck, Financial Services Manager Administrative Assistant Mary Roy Print and Mail Coordinator Karl Hurst Form/Graphic Technician Beth Haglund TABLE OF CONTENTS DECEMBER 31, 2008 ITEM PAGE INTRODUCTORY SECTION Letterof Transmittal..................................................................................................................................... 1-1 2007 Comprehensive Annual Financial Report Award................................................................................ 1-7 Corporate Organization Structure & Reporting Relations............................................................................ 1-8 FINANCIAL SECTION IndependentAuditor'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..............................................................................................................................4-35 Note 7: Other Post Employment Benefits.......................................................................................4-45 Note8: Contingencies.....................................................................................................................4-47 Note9: Risk Management............................................................................................................... 4-48 Note 10: Interfund Transactions........................................................................................................ 4-51 Note11: Net Assets........................................................................................................................... 4-53 Note 12: Prior Year Restatements.....................................................................................................4-54 Note13: Short Term Debt................................................................................................................. 4-54 Note14: Long Term Debt.................................................................................................................4-55 Note 15: Deferred Charges in Proprietary Funds..............................................................................4-59 Note 16: Segment Information.......................................................................................................... 4-59 Note17: Joint Ventures.....................................................................................................................4-59 Note 18: Subsequent Events.............................................................................................................. 4-60 Required Supplemental Information Other than MD&A Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget to Actual GeneralFund..........................................................................................................................................5-1 Actuarial Valuation of Firefighters' Pension Fund................................................................................ 5-2 LEOFF I Retiree Medical Benefits - Schedule of Funding Progress........................................5-3 in TABLE OF CONTENTS DECEMBER 31, 2008 ITEM Combining Statements PAGE Non -Major Fund Descriptions...............................................................................................................6-1 CombiningBalance Sheet......................................................................................................................6-5 Combining Statement of Revenues, Expenditures and Changes in Fund Balances.............................6-11 Schedule of Revenues, Expenditures and Changes in Fund Balances Budgetto Actual..................................................................................................................................6-17 Combining Statement of Net Assets, Non -Maj or Enterprise Funds .................................................... 6-29 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets, Non -Major Enterprise Funds.........................................................................................................6-31 Statement of Cash Flows, Non -Major Enterprise Funds......................................................................6-32 Combining Statement of Net Assets, Internal Service Funds.............................................................. 6-34 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets, InternalService Funds...................................................................................................................6-36 Combining Statement of Cash Flows, Internal Service Funds.............................................................6-37 Statement of Changes in Assets and Liabilities Agency Fund — Special Deposit ............................... 6-39 STATISTICAL SECTION Statistical Section Description...............................................................................................................7-1 Financial Trends: Table 1: Net Assets by Component.................................................................................................... 7-3 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 zY o July 23, 2009 Honorable Denis Law, Mayor Members of the Renton City Council Residents of Renton City of Renton, Washington RE: THE 2008 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, 2008. 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, 2008, 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 reasonable basis for issuing an unqualified opinion that the City of Renton's financial statements for the fiscal year ended December 31, 2008, 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. 2008 Comprehensive Annual Financial Report City of Renton, Washington 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 22.24 square miles. We have over 1,181 acres of parks that includes 29 active parks. As presented by the Washington State Office of Financial Management, our 2008 population was 80,708. 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, 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 Introduction, 1-2 2008 Comprehensive Annual Financial Report City of Renton, Washington 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. 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. Introduction, 1-3 2008 Comprehensive Annual Financial Report City of Renton, Washington Economic Condition and Outlook In Mayor Denis Law's 2009 State of the City's address he highlighted: • "Total Renton employment is expected to decline about 3 percent this year. Housing permits have dropped from more than 1,300 units in 2007 to less than 450 units last year and are anticipated to continue to go down." • "Pull-back in consumer and business spending in our region is expected to continue through this year, resulting in another cycle of falling taxable sales and sales tax collection for the City." • "Within the first couple weeks of this year, it became very apparent that revenues were dropping at a rate higher than we could have foreseen, requiring that we prepare for deficits that may reach 8% or more this year. • "Despite the negative economy, Renton's population, housing stock, and retail spending still outpaced comparable measures for King County and the region last year. New construction in the City has been between two and three times the regional average over the past three years. Employment growth for Renton between 2005 and 2008 outpaced that of King County by 4%. We continued to see increased numbers of jobs in wholesale, retail, and business services, and a diversification of our economy and employment base. The growth in Renton's total taxable retail sales was among the highest in the region, at over 3% in 2008 when most cities were seeing declines. Renton's assessed valuation has increased almost 100 percent over the last seven years, from $5.0 billion in 2001 to nearly $10 billion in 2008". UPDATE FROM BUDGET DOCUMENT Outlook "The total 2009 proposed expenditure budget is $252 million, of which $171 million is for City operations, $57 million is for debt service and proposed capital projects, and $24 million represents internal transfers that are offset by revenues. This represents a 2% increase over the 2008 adopted budget. The total revenues equal $245 million. The difference between revenues and expenditures of about $7 million will be covered by prior year fund balances for capital equipment and projects. Of the $171 million operating budget, $101 million is for General Government Operations. These are activities primarily supported by tax revenues. With the slowing economy and a high rate of inflation, our preliminary projections indicate that maintaining current services in General Governmental Operations will result in a deficit of over $5 million in 2009." Introduction, 1-4 2008 Comprehensive Annual Financial Report City of Renton, Washington "The proposed budget also reflects cost increases for specific purposes. These include the cost of the Fire District 40 contract, an increase in equipment costs in the police operating budget, a full year's cost for annexation -related personnel, and a proposed transfer of $1 million to fund capital projects. Funding for these increases will come from the Fire District 40 service contract, a full year of revenues from Annexation Sales Tax Credit, and continued growth in the share of our property taxes that comes from new construction. With these adjustments, we will be able to balance our operating budget with current operating revenues, and use prior year fund balances only for one-time capital purposes." Source: 2009 Budget Message Letter by: Mayor Denis Law OTHER INFORMATION 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. In 2008, the independent actuarial study estimates a (negative) net pension obligation of ($1,082,280), 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 Berkley Risk for cases that exceed $350,000. The City also purchases life and disability insurance from various healthcare insurance providers. Awards and Acknowledgements The City has a long history of superior achievements in the preparation of its Comprehensive Annual Financial Reports through the peer review program conducted by the Government Finance Officers Association. The dedicated staff of the Finance Division work hard each day to Introduction, 1-5 2008 Comprehensive Annual Financial Report City of Renton, Washington 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 Linda M. Parks, CPA Finance & Information Services Administrator Fiscal Services Director Introduction, 1-6 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, 2007 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. aF�,� ~ a d President cxxasa Executive Director City of Renton Corporate Organization Structure RENTON CITIZENS CITY COUNCIL MAYOR MUNICIPAL COURT Randy Corman, President Denis Law JUDGE Don Persson, Marcie Palmer 425-430-6500 Terry Jurado Terri Briere, King Parker 425-430-6550 Greg Taylor, Rich Zwicker 425-430-6501 CHIEF ADMINISTRATIVE OFFICER COMMUNICATIONS Jay Covington Preeti Shridhar, Director 425-430-6500 425-430-6500 COMMUNITY SERVICES Terry Higashiyama, Administrator 425-430-6600 Facilities Peter Renner, Director Parks Leslie Betlach, Director Recreation Jerry Rerecich, Director Human Services Karen Bergsvik, Manager Library Bette Anderson, Director Renton History Museum Elizabeth Stewart, Manager Community Resources and Events 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 City Attorney Larry Warren, Administrator (425) 255-8678 PUBLIC WORKS Gregg Zimmerman, Administrator 425-430-7394 Maintenance Services Michael Stenhouse, Director Transportation Systems Peter Hahn, Deputy PW Administrator Utility Systems Lys Hornsby, Director FIRE AND EMERGENCY SERVICES I. David Daniels, Chief/ Administrator 425-430-7501 Response Operations Mark Peterson Deputy Fire Chief L'o Safety and pport Services bert Van Horne Deputy Fire Chief LCommunity Risk Reduction Bill Flora Deputy Fire Chief Emergency Management 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 HUMAN RESOURCES AND RISK MANAGEMENT Nancy Carlson, Administrator 425-430-7650 Human Resources Civil Service Commission Risk Management ADMINISTRATIVE AND JUDICIAL SERVICES Marty Wine, Assistant CAO 425-430-6500 Mayor's Office City Clerk/Cable Manager Bonnie Walton, City Clerk Court Services Joe McGuire, Director Hearing Examiner Fred Kaufman, Hearing Examiner FINANCE AND INFORMATION SERVICES Iwen Wang, Administrator 425-430-6858 Finance Linda Parks, Fiscal Services Director Information Services George McBride, IS Director Print and Mail Services �M1 Washington State Auditor Brian Sonntag INDEPENDENT AUDITOR'S REPORT July 23, 2009 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, 2008, 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. 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, King County, Washington, as of December 31, 2008, 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. As described in Note 7, during the year ended December 31, 2008, the City has implemented the Governmental Accounting Standards Board's Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. The management's discussion and analysis on pages 3-1 through 3-15, budgetary comparison information on page 5-1 and pension trust fund information on page 5-2 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 Insurance Building, PO Box 40021 • Olympia, Washington 98504-0021 • (360) 902-0370 • (866) 902-3900 • TDD Relay (800) 833-6388 04 FAX (360) 753-0646 • http://www.sao.wa.gov 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 financial statements and supplemental information on pages 6-1 through 6-39 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, CGFM STATE AUDITOR 2008 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, 2008. 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 2008 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 general 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 2008 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, 2008, exceeded liabilities by over $644.5 million. • As of December 31, 2008, the City's Governmental Activities reported net assets of $420.7 million. Of this total, $34.2 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. • Investments in capital assets comprise $353.2 million of the $420.7 million in Governmental Activities net assets. • The business type activities have total net assets of $223.9 million. Ninety (90.4%) percent of this total, $202.3 million, represents the City's investments in capital assets. An unrestricted balance of $17.4 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, 2008, was $101.5million. Of this amount, $50 million are revenue bonds and PWTF loans dedicated to the waterworks projects. Another $505,000 is for outstanding bonds for Senior Housing. These bonds have a special taxing authority. The Golf Course has $2.6 million outstanding in debt service. Employee leave balances total $6.49 million. The balance of $41.9 million of our debt is dedicated for general governmental purposes, including the purchase of City Hall, the construction of the downtown parking garage, and a replacement of a fire station (our share of a regional E-911), Communications Center, and other small projects, including municipal -bonds sold for fire equipment. 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 2008. 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 Analysi, 3-2 2008 Comprehensive Annual Financial Report Figure 1 REQUIRED COMPONENTS OF THE ANNUAL FINANCIAL REPORT Management Discussion and Analysis (required supplementary information) IC (new) Government -wide Financial Statements (new) Fund Financial Statements (refocused) w� � Notes to the Financial Statements M (expanded/restructured) � .� Required Supplementary F •� � � Information a° (other than MD&A) 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 2008 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 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. All 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 • Any other governmental or enterprise fund that the government's officials believe is particularly important. Management's Discussion and Analysi, 3-4 2008 Comprehensive Annual Financial Report City of Renton, Washington 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 and Capital Investment 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 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. Management's Discussion and Analysis, 3-5 2008 Comprehensive Annual Financial Report City of Renton, Washington 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 on pensions. 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 2007 to 2008 shows an increase in total net assets of $137 million. Table 1 is a condensed version of the Government -wide Statement of Net Assets. Management's Discussion and Analysi, 3-6 2008 Comprehensive Annual Financial Report Table 1 NET ASSETS Governmental Governmental Business -type Business -type Activities Activities Activities Activities 2007 2008 2007 2008 City of Renton, Washington Total Total Primary Primary Government Government 2007 2008 Current and other assets $88,100,131 83,713,100 $24,024,920 25,229,239 $112,125,051 108,942,339 Land 88,947,494 175,559,921 6,976,321 6,976,321 95,923,814 182,536,242 Construction in process 41,893,039 29,912,496 5,699,290 10,014,741 47,592,327 39,927,237 Capital assets (net of 32,648,993 33,294,987 3,586,667 4,171,525 36,235,660 37,466,512 accumulated depreciation) 143,161,082 191,794,358 218,642,046 236,611,238 361,803,128 428,405,596 TOTAL ASSETS $362,101,746 480,979,875 $255,342,577 278,831,539 $617,444,320 759,811,414 Long tern liabilities $49,397,374 48,275,566 $43,999,200 53,152,711 93,396,574 101,428,277 Other liabilities 15,265,203 12,051,530 1,265,319 1,821,099 16,530,522 13,872,629 TOTAL LIABILITIES $64,662,577 60,327,096 $45,264,519 54,973,810 $109,927,096 115,300,906 NET ASSETS Invested in capital assets, net of related debt $232,714,563 353,197,782 $188,518,151 202,255,997 $421,232,714 555,453,779 Restricted 32,648,993 33,294,987 3,586,667 4,171,525 36,235,660 37,466,512 Unrestricted 32,075,613 34,160,010 17,973,237 17,430,207 50,048,850 51,590,217 TOTAL NET ASSETS $297,439,169 420,652,779 $210,078,055 223,857,729 $507,517,224 644,510,508 The majority of the City's net assets (86%) 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 2007 to 2008 by $134.3 million. Investment in capital assets increased by $120.5 million in the Governmental Funds and $13.7 million in the Business -type activities primarily due to annexations. The largest was Benson Hill adding over 16,000 new residents. This annexation is further discussed in Note 1 and 12 of the financials. Chart 1 $700,000,000 CATEGORIES OF NET ASSETS $ 600,000,000 $ 500,000,000 $400,000,000 $ 300,000,000 $200,000,000 $100,000,000 $0 _ C5.5 0 � o .5 0.1 .c 0 .? CQ o MUnrestricted c7 d Up d c d o d o L7 ERestricted ' ■Invested in capital assets Management's Discussion and Analysis, 3-7 2008 Comprehensive Annual Financial Report City of Renton, Washington Restricted assets, representing resources that are subject to external restrictions on how they may be used, equate to seven percent (5.8) of total net assets, down from nine percent (7.1 %) in 2007. The remaining balance (unrestricted net assets) of $51.6 million may be used to meet the City's ongoing obligations. Chart 1 provides a graphical comparison of the three categories of net assets for 2007 and 2008. As of December 31, 2008, 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 and changes in accounting principles) increased in 2007 by $22.5 million. Governmental activities generated eighty percent (80%) of this total or $17.9 million, while business -type activities generated $4.6 million of this total. Chart 2 below illustrates the various sources and amounts of revenue received by the government as a whole. Table 2 follows the chart. This is a condensed version of the Statement of Activities for the City. Comparable data is available and provided in the 2008 Annual Report. Chart 2 2008 TOTAL REVENUES BY SOURCE Interest/Investment earnings 2% Miscellaneous Business 1% Taxes Excise Taxes 7% 2% Sales Taxes 13% Property Taxes 17% Capital Grants/Contribution 14% Charges for Services 36% Operating Grants & Contributions 6% Management's Discussion and Analysi, 3-8 2008 Comprehensive Annual Financial Report City of Renton, Washington Table 2 CHANGE OF NET ASSETS Total Primary Total Primary Governmental Governmental Business -Type Business -Type Government Government Activities 2007 Activities 2008 Activities 2007 Activities 2008 2007 2008 REVENUES: $29,112,970 $12,010,422 $5,648,731 $4,686,133 $29,112,970 $12,010,422 Program revenues: 1,845,031 1,761,665 (110,000) 1,845,031 1,761,665 Charges for services $36,863,657 $17,592,481 $45,403,349 $44,651,684 $82,267,006 $62,244,165 Operating grants & contributions 5,265,737 9,570,931 243,537 264,784 5,509,274 9,835,715 Capital grants & contributions 4,940,471 18,109,124 1,761,802 6,888,975 6,702,273 24,998,099 GENERAL REVENUES: 6,880,687 6,823,426 $210,078,038 $223,857,729 6,880,687 6,823,426 Property taxes 23,106,578 29,381,036 23,106,578 29,381,036 Sales taxes 22,749,831 23,190,076 22,749,831 23,190,076 Business taxes 11,962,879 14,945,173 11,962,879 14,945,173 Othertaxes 8,236,876 4,362,945 8,236,876 4,362,945 Penalties and interest 33,949 6,477 $28,657,468 $32,738,366 33,949 6,477 Interest and investment earnings 3,465,517 2,419,260 1,041,576 1,120,342 4,507,093 3,539,602 Miscellaneous 1,218,889 2,104,133 135,986 85,493 1,354,875 2,189,626 TOTAL REVENUES $117,844,384 $121,681,636 $48,586,250 $53,011,278 $166,430,634 $174,692,914 PROGRAM EXPENSES GOVERNMENTAL ACTIVITIES General government services $29,112,970 $12,010,422 $5,648,731 $4,686,133 $29,112,970 $12,010,422 Judicial 1,845,031 1,761,665 (110,000) 1,845,031 1,761,665 Security of persons and property 36,213,120 46,289,454 5,648,731 4,576,133 36,213,120 46,289,454 Physical environment 2,749,417 3,333,471 204,429,324 210,078,055 2,749,417 3,333,471 Transportation 11,237,287 13,675,581 9,203,541 11,237,287 13,675,581 Economic environment 6,880,687 6,823,426 $210,078,038 $223,857,729 6,880,687 6,823,426 Mental and physical health 301,495 325,066 301,495 325,066 Culture and recreation 11,036,931 17,025,800 11,036,931 17,025,800 Interest on long-term debt 2,594,784 2,663,436 2,594,784 2,663,436 Business -type activities Water $28,657,468 $32,738,366 28,657,468 32,738,366 Airport 1,396,054 1,733,894 1,396,054 1,733,894 Solid waste 10,606,560 11,518,047 10,606,560 11,518,047 Golf 2,277,454 2,334,838 2,277,454 2,334,838 TOTAL EXPENSES $101,971,722 $103,908,321 $42,937,536 $48,325,145 $144,909,258 $152,233,466 Increase in net assets before transfers $15,872,662 $17,773,315 $5,648,731 $4,686,133 $21,521,391 $22,459,448 Transfers 110,000 (110,000) Increase in net assets 15,872,662 17,883,315 5,648,731 4,576,133 21,521,391 22,459,448 Netassets- beginning 281,566,509 297,439,169 204,429,324 210,078,055 485,995,833 507,517,224 Prior period adjustment 105,330,297 9,203,541 114,533,838 Net Assets—ending $297,439,171 $420,652,781 $210,078,038 $223,857,729 $507,517,224 $644,510,510 Seventy percent (70%) of the City of Renton's total revenue activities are for general governmental activities such as providing police, fire, parks, libraries, recreational, building safety, and planning services. The largest business type activities include water, sewer, surface water, solid waste, and golf activities. Governmental Activities Analysis Governmental activities cost a total of $103.9 million in 2008, up $1.9 million from 2007. Of this amount, $45.3 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 Chart 3 2008 COMPARISON OF TOTAL GOVERNMENTAL vs BUSINESS TYPE EXPENSES Business Type Governmental Activities Activities 32% Management's Discussion and Analysis, 3-9 68% 2008 Comprehensive Annual Financial Report City of Renton, Washington and contribution. The net expense (total expenses less program revenues) of $58.6 million was the cost of governmental services City taxpayers primarily paid through various taxes. Chart 4 portrays the cost of each of the City's major 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 4 GOVERNMENTAL ACTIVITIES PROGRAM REVENUES AND EXPENSES 2007 vs 2008 G yp, ro\ ,y q�,� ° � °�ti t�°lti �`°,� �'�°� °�ti �� e'�Sl r2�'� °tib o�Sa o4 SJ a4So agto4 ,t°ofi �`t°9 sq°t 4°cam ago aSo oil fi`� �c� °66' �° Seo S�°o 3b9 °Sma P`�r °�4o yo° do o�q¢�° o�qs° ^q��S` o°�Seo°,S�J��� ryoo°o ry°o^ ryoo� foo^� ���� ryoo^ �oo� ti ti Chart 5 depicts the sources of revenues that fund governmental activities. Approximately fifty-eight (58%) is from various taxes. Charges for services, grants, and interest earnings generate forty-two percent (42%) of total revenue for general governmental activities. Management's Discussion and Analysi, 3-10 2008 Comprehensive Annual Financial Report Chart 5 GOVERNMENTAL ACTIVITIES REVENUES BY SOURCE Capital Grants 15% Operating Grants 8% Charges for Services 14% Miscellaneous 2% Interest Earnings 3% Business Taxes 12% Excise Taxes 4% City of Renton, Washington Property Taxes 23% Retail Sales Taxes 19% Business -Type Activities Analysis Charts 6 and 7 present the same information on business -type activities as illustrated for general governmental type activities. Chart 6 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.) $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Chart 6 ■Expenses BUSINESS TYPE ACTIVITIES ERevenues PROGRAM REVENUES AND EXPENSES 2007 2008 2007 Airport 2008 Airport 2007 Solid 2008 Solid 2007 Golf 2008 Golf Waterworks Waterworks Waste Waste Course Course The Waterworks Utility had a positive net change of $5.1 million at the end of 2008 compared to $5.2 million in 2007. The City generated $37.8 million in various fees for services and other sources from waterworks activities above the $32.7 million in expenses. Management's Discussion and Analysis, 3-11 2008 Comprehensive Annual Financial Report City of Renton, Washington The Airport's total expenses were $1.7 million. Grant revenues for 2008 were $179,292 with total revenues of $1.3 million. The Solid Waste Utility's revenues were $10.5 million generated from fees for services and $264,784 in grants. The total expenses were $11.5 million. The Golf Course generated a total of $2.3 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 $71,997 for the year. Business -type activities are supported primarily from charges for services. In the City of Renton, $44.7 million was generated from charges for services in the business -type activities. These comprise eighty-five percent (85%) of the total financial support for these activities. Grant revenues increased $5.2 million from 2007 to 2008. Chart 7 BUSINESS TYPE ACTIVITIES REVENUES BY SOURCES Interest & Grants Miscellaneous FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS Governmental Funds Analysis Charges for Services 85% 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 $47.8 million, a decrease of $2.7 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 reserves. The decrease resulted from higher actual expenditures (budgeted) over the previous year and shortfalls in actual revenues over projections due to the slowdown of 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 $4.9 million, while total fund balance ended at $13.5 million. The fund balance total decreased $3 million during the fiscal year. Excess of expenditures over revenues, excluding internal transfers was $2.4 million in 2008. Management's Discussion and Analysi, 3-12 2008 Comprehensive Annual Financial Report City of Renton, Washington Besides the General Fund, the City has only one other major governmental fund. The Capital Improvement Fund was a new major fund in 2007 and had a net change (increase) in fund balance of $4.1 million. Even with this increase the City was able to spend $18 million on capital improvements and major maintenance. 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 $203.7 million and $1.4 million respectively. This represents an increase in Waterworks Utility Fund of $15.2 million and a decrease in the Solid Waste Fund of $959,861 in net assets. Of the total net assets increase in the Waterworks Utility Fund, $9.2 million was a prior period adjustment and is discussed further in Note 12 of the financial statements. In addition capital contributions were $5 million over last year. While the Solid Waste fund's revenues have not changed from the prior year, the amount to operate the fund has increased resulting in a $1.3 million dollar operating loss. 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 a $ 5,453,949 increase (excluding internal transfers) in appropriations between the original and final amended budget. This increase was mainly due to the Fire District #40 contract and Benson Hill annexation. The City however took aggressive action to reduce the level of spending in the General Fund to compensate for expected revenue shortfalls. The General Fund budget did not spend $5,304,891 (excluding internal transfers) of the legally appropriated expenditures. Even with this reduction the City had to use $2,965,287, including a $519,503 transfer out, of its prior years fund balance reducing the $16.5 million balance to $13.5 million. 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, 2008, amounts to $650.9 million as presented on the following table. Management's Discussion and Analysis, 3-13 2008 Comprehensive Annual Financial Report Table 3 CAPITAL ASSETS (Net of Accumulated Depreciation) Governmental Activities Business 1 /l /2008 12/31/2008 1/1/2008 City ofRenton, Washington Activities Total Activities 12/31/2008 1/1 /2008 12/31/2008 Land $88,947,494 $175,559,920 $6,976,321 $6,976,321 $95,923,815 $182,536,241 Construction in progress 41,893,039 29,912,497 5,699,288 10,014,741 47,592,327 39,927,238 Buildings and structures 52,356,883 48,596,215 10,799,011 12,130,440 63,155,894 60,726,655 Other improvements 78,576,142 127,068,177 206,963,989 223,715,208 285,540,131 350,783,385 Machinery and equipment 12,228,057 16,129,966 879,046 765,590 13,107,103 16,895,556 $274,001,615 $397,266,775 $231,317,655 $253,602,300 $505,319,270 $650,869,075 General government infrastructure includes streets, bridges, overlays, and traffic controls. More detail about the City's Capital Assets can be found in Note 5 to the financial statements. Debt Administration As shown in Table 4, the City's total outstanding debt at December 31, 2008, was $101.5 million. This was a net increase (new issues less principal payments and refundings) of $8.1 million. Table 4 OUTSTANDING DEBT General Activities Business Type Activities Total Activities 1/1/2008 12/31/2008 1/1/2008 12/31/2008 1/1/2008 12/31/2008 General obligation bonds $44,956,950 $42,397,414 $44,956,950 $42,397,414 Revenue debt $33,405,000 43,310,000 33,405,000 43,310,000 Other long term debt 9,878,951 9,226,394 9,878,951 9,226,394 Employee benefits 4,440,424 5,878,152 715,249 616,317 5,155,673 6,494,470 $49,397,374 $48,275,566 $43,999,200 $53,152,711 $93,396,574 $101,428,277 The Water and Sewer Revenue Bonds (A and B) were issued January 4, 2008 in the amount of $9,975,000 and $2,035,000, respectfully. The average interest rate is 4.17%. 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 waterworks utility. The Water & Sewer Revenue Bond underlying ratings remain AA- at both rating agencies. More detailed information about the City's long-term debt can be found in Note 14 and 18 to the financial statements. FUTURE YEAR'S BUDGETARY IMPACTS The City continues to benefit from progressive economic development activities allowing the City to continue to maintain its level of services during this economic slowdown. • The Landing is a master planning development area on land previously owned by Boeing. The development will add more than 900 residential units and 600,000 square feet of retail, including a major entertainment district to the city's core. • The City has begun working with developers and the Boeing Company on the second phase of the Landing, which may include high-quality office buildings and a hotel. Management's Discussion and Analysi, 3-14 2008 Comprehensive Annual Financial Report City of Renton, Washington • The Boeing Company, the largest employer in the City, employs approximately 12,000 employees. • The Federal Reserve Bank of San Francisco Seattle headquarters and the Seattle Seahawks' Virginia Mason Athletic Center opened in Renton this year. • The City annexed the Benson Hill area that included the Cascade Shopping Center. The City is working with the owner on redevelopment opportunities. For more information regarding the factors affecting the 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, FIS Administrator, 1055 South Grady Way, Renton, WA 98057 or visit our web site at http://rentonwa.gov/. Management's Discussion and Analysis, 3-15 2008 Comprehensive Annual Financial Report This page intentionally left blank. City ofRenton, Washington Management's Discussion and Analysi, 3-16 2008 Comprehensive Annual Financial Report ASSETS Cash and cash equivalents Investments at fair value Receivables (net of allowance for uncollectibles) Internal balances Inventories Prepayments Other non-current assets Restricted assets: Investments at fair value Land Construction in progress Capital assets (net of accumulated depreciation) Total assets LIABILITIES Accounts payable and other liabilities Interest payable Unamortized (discount)/premium Unearned revenue Non-current liabilities: Due within one year Due in more than one year Total liabilities NET ASSETS Investment in capital assets, net of related debt Restricted for: Promotional programs Construction projects Debt service Unrestricted Total net assets City of Renton, Washington STATEMENT OF NET ASSETS December 31, 2008 PRIMARY GOVERNMENT GOVERNMENTAL BUSINESS -TYPE ACTIVITIES ACTIVITIES TOTAL $ 23,540,666 $ 3,978,160 $ 27,518,826 32,874,707 13,907,872 46,782,579 21,011,971 5,488,640 26,500,611 (5,269) 5,269 - - 555,337 555,337 604,984 - 604,984 5,686,041 853,808 6,539,849 - 440,153 440,153 175,559,921 6,976,321 182,536,242 29,912,496 10,014, 741 39,927,237 191,794,358 236,611,238 428,405,596 $ 480,979,875 $ 278,831,539 $ 759,811,414 11,094, 623 1,642,023 12,736, 646 361,998 292,457 654,455 589,299 (336,283) 253,016 5,610 222,902 228,512 5,633,558 3,277,619 8,911,177 42,642,008 49,875,092 92,517,100 $ 60,327,096 $ 54,973,810 $ 115,300,90-6– $ 353,197,782 $ 202,255,997 $ 555,453,779 2,806,667 - 2,806,667 29,217,384 - 29,217,384 1,270,936 4,171,525 5,442,461 34,160,010 17,430,207 51,590,217 $ 420,652,779 $ 223,857,729 $ 644,510,508 The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-1 2008 Comprehensive Annual Financial Report STATEMENT OF ACTIVITIES For the Year Ended December 31, 2008 Page 1 of 2 FUNCTIONS/PROGRAMS EXPENSES Primary government: 2,420,913 Governmental activities: - General government $ 12,010,422 Judicial 1,761,665 Security of persons and property 46,289,454 Physical environment 3,333,471 Transportation 13,675,581 Economic environment 6,823,426 Mental and physical health 325,066 Culture and recreation 17,025,800 Interest on long-term debt 2,663,436 Total governmental activities $ 103,908,321 Business -type activities City of Renton, Washington PROGRAM REVENUES OPERATING CHARGES FOR GRANTS AND CAPITAL GRANT CGD\/1(`CC r nNITDIRI ITIf1AIC R. r r)r,1TDIRI ITIMIQ $ 5,614,638 $ 8,250,260 $ 3,261,380 2,420,913 - - 550,773 810,227 Solid waste utility 864,581 305,851 - 2,165,538 12,519 14,207,150 4,236,983 15,000 500,000 - - 7,500 1,739,055 177,074 133,094 $ 17,592,481 $ 9,570,931 $ 18,109,124 Waterworks utility $ 32,738,366 $ 31,110,061 $ $ 6,709,683 Airport 1,733, 894 1,086,064 179,292 Solid waste utility 11,518,047 10,192,718 264,784 - Golf course 2,334,838 2,262,841 - - Total business -type activities $ 48,325,145 $ 44,651,684 $ 264,784 $ 6,888,975 Total primary government $ 152,233,466 $ 62,244,165 $ 9,835,715 $ 24,998,099 General revenues: Taxes: Property taxes Retail sales taxes Business taxes Excise taxes Penalties and interest Interest and investment earnings Gain on Sales of Assets 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 2008 Comprehensive Annual Financial Report City of Renton, Washington Page 2 of 2 NET (EXPENSE) REVENUE AND CHANGES IN NET ASSETS PRIMARY GOVERNMENT GOVERNMENTAL BUSINESS -TYPE ACTIVITIES ACTIVITIES TOTAL $ 5,115,856 $ $ 5,115,856 659,248 23,190,076 659,248 (44,928,454) 23,190,076 (44,928,454) (2,163,039) (2,163,039) 2,709,626 2,709,626 (2,071,443) 6,477 (2,071,443) (452,102) 6,477 (452,102) (14,842,043) 1,120,342 (14,842,043) (2,663,436) (2,663,436) $ (58,635,787) 110,000 $ (58,635,787) $ 5,081,378 $ 5,081,378 $ (468,538) (468,538) $ 17,883,313 (1,060,545) (1,060,545) $ 22,459,446 (71,997) (71,997) $ 3,480,298 $ 3,480,298 $ (58,635,787) $ 3,480,298 $ (55,155,489) $ 29,381,036 $ $ 29,381,036 23,190,076 23,190,076 14, 945,173 14,945,173 4,362,945 4,362,945 6,477 6,477 2,419,260 1,120,342 3,539,602 2,104,133 85,493 2,189,626 110,000 (110,000) - $ 76,519,100 $ 1,095,835 $ 77,614,935 $ 17,883,313 $ 4,576,133 $ 22,459,446 $ 297,439,169 $ 210,078,055 $ 507,517,224 $ 105,330,297 $ 9,203,541 $ 114,533,838 $ 420,652,779 $ 223,857,729 $ 644,510,508 The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-3 2008 Comprehensive Annual Financial Report ASSETS Cash & cash equivalents Investments Receivables (net of allowances) Taxes Customer accounts Accrued interest & penalty Interfund loans receivable Due from other funds Due from other governmental units Prepayments TOTAL ASSETS City of Renton, Washington BALANCE SHEET GOVERNMENTALFUNDS December 31, 2008 Page 1 of 2 OTHER TOTAL CAPITAL GOVERNMENTAL GOVERNMENTAL GENERAL INVESTMENT FUNDS FUNDS $ 3,731,827 $ 2,528,155 $ 7,814,267 $ 14,074,249 6,418,107 196,482 14,965,657 21,580,246 2,636,311 - 265,558 2,901,869 3,092,363 1,156 1,999,506 5,093,025 71,661 52,808 924,138 1,048,607 - - 1,000,000 1,000,000 923 - 178,975 179,898 4,191,637 6,097,410 882,428 11,171,475 8,000 - - 8,000 $ 20,150,829 $ 8,876,011 $ 28,030,529 $ 57,057,369 The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-4 2008 Comprehensive Annual Financial Report LIABILITIES AND FUND BALANCES Liabilities Accounts payable Taxes payable Retainage payable Due to other funds Interfund loans payable Custodial accounts Deposits Deferred revenue Accrued employee wages and leave payable Total liabilities Fund balances Reserved for: Interfund loans receivable 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 GOVERNMENTALFUNDS December 31, 2008 Page 2 of 2 OTHER TOTAL CAPITAL GOVERNMENTAL GOVERNMENTAL GENERAL INVESTMENT FUNDS FUNDS $ 1,654,643 $ 335,797 $ 998,840 $ 2,989,280 16,355 - 45,588 61,943 - 48,808 122,927 171,735 184,244 - - 184,244 - 1,000,000 1,000,000 39,438 - 39,438 34,739 32,981 67,720 1,194,583 22,292 1,216,875 3,509,730 - 4,320 3,514,050 $ 6,633,732 $ 384,605 $ 2,226,948 $ 9,245,285 $ - $ - $ 1,000,000 $ 1,000,000 8,000.00 - 8,000.00 8,615,230 - 8,615,230 - 2,806,667 2,806,667 - 1,270,936 1,270,936 - 8,491,406 20,725,978 29,217,384 4,893,867 - - 4,893,867 $ 13,517,097 $ 8,491,406 $ 25,803,581 $ 47,812,084 $ 20,150,829 $ 8,876,011 $ 28,030,529 $ 57,057,369 The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-5 2008 Comprehensive Annual Financial Report City of Renton, Washington RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS December 31, 2008 FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ 47,812,084 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resource: and therefore are not reported in the governmental funds Capital assets (net) and other non-current assets $ 391,390,014 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 $ 840,007 Long-term liabilities, including bonds payable are not due and payable in the current period and therefore are not reported in the governmental funds Interest payable $ Long-term liabilities (48,732,008) Internal service funds are used by management to charge the costs o' certain activities to individual funds. Total assets and liabilities of the internal service funds that are reported with governmental activities, less capital assets reported above $ 29,342,682 NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 420,652,779 The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-6 2008 Comprehensive Annual Financial Report City of Renton, Washington STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS For the Year Ended December 31, 2008 Page 1 of 1 REVENUES Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeits Interfund revenues 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 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfer in Transfer (out) Sale of capital assets TOTAL OTHER FINANCE SOURCES (USES) OTHER TOTAL CAPITAL GOVERNMENTAL GOVERNMENTAL GENERAL IMPROVEMENT FUNDS FUNDS $ 66,844,997 $ - $ 5,669,391 $ 72,514,388 2,751,420 1,956,165 268,000 4,975,585 8,773,933 17,358,161 1,417,527 27,549,621 3,976,920 - 3,169,030 7,145,950 2,002,854 47,812,084 - 2,002,854 3,072,526 - 3,072,526 - 135,000 135,000 587,590 1,152,445 1,740,035 64,359 - 1,209,000 1,273,359 $ 88,074,599 $ 19,314,326 $ 13,020,393 $ 120,409,318 $ 14,387,478 $ - $ 706,662 $ 15,094,140 1,761,665 - 1,761,665 45,530,208 45,530,208 3,123,883 3,123,883 6,332,006 - 6,332,006 6,232,669 441,012 6,673,681 16,459 - 16,459 11,119,073 - - 11,119,073 2,017,677 17,991,860 8,510,916 28,520,453 - - 2,079,551 2,079,551 - - 2,729,247 2,729,247 $ 90,521,118 $ 17,991,860 $ 14,467,388 $ 122,980,366 $ (2,446,519) $ (2,571,048) 1,322,466 $ (1,446,995) $ $ - $ 2,868,229 $ 1,185,378 $ 4,053,607 (519,503) (75,000) (3,606,104) (4,200,607) 735 19,908 20,643 $ (518,768) $ 2,813,137 $ (2,420,726) $ (126,357) NET CHANGE IN FUND BALANCE $ (2,965,287) $ 4,135,603 $ (3,867,721) $ (2,697,405) FUND BALANCE JANUARY 1 $ 16,482,384 $ 4,355,803 $ 29,671,302 $ 50,509,489 FUND BALANCE DECEMBER 31 $ 13,517,097 $ 8,491,406 $ 25,803,581 $ 47,812,084 The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-7 2008 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 GOVERNMENTALFUNDS For the Year Ended December 31, 2008 NET CHANGES IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 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 are depreciated over their estimated useful lives. Capital Outlay Expenditures for capital assets less current year depreciatior $ 14,344,797 Repayment of long-term debt is an expenditure in governmen• tal funds, but the repayment reduces long-term liabilitieE in the statement of net assets. Loan or bond proceeds provide current financial resources to governmenta funds, but the repayment reduces long-term liabilitie< in the statement of net assets. Principal payments $ 1,041,722 Some revenues or expenditures reported in the statement of activities are not yet available or expensed and therefore are not reported as revenue or expenses in governmental funds $ 362,281 Net Pension Obligation over funded / (under funded; $ 155,079 Internal service funds or activities are used by management tc charge the costs of certain activities to individual funds. The net (expense) of the internal service fund anc internal balances reported with governmental activities, $ 4,676,837 CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ (2,697,405) $ 17,883,311 The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-8 2008 Comprehensive Annual Financial Report City of Renton, Washington STATEMENT OF NET ASSETS 3,978,159 $ PROPRIETARY FUNDS 12,948,026 December 31, 2008 808,643 Page 1 of 2 11,294,461 BUSINESS -TYPE ACTIVITIES 869,753 ENTERPRISE FUNDS GOVERNMENTAL OTHER TOTAL ACTIVITIES WATERWORKS ENTERPRISE ENTERPRISE INTERNAL SERVICE UTILITY SOLID WASTE FUNDS FUNDS FUNDS ASSETS Current assets: Cash & cash equivalents Investments at fair value Receivables (net of allowances): Customer accounts Special assessments - current Interest - investments Due from other funds Due from other governmental units Inventory of materials and supplies Prepayments Total current assets Noncurrent assets: Restricted Investments at fair value Special assessments deferred Capital assets (net) Deferred charges and other assets Total noncurrent assets TOTAL ASSETS $ 2,300,930 $ 598,528 $ 1,078,701 $ 3,978,159 $ 9,466,418 12,948,026 150,000 808,643 13,906,669 11,294,461 3,471,137 869,753 40,394 4,381,284 16,689 30,492 - - 30,492 - 386,775 10,314 70,713 467,802 772,928 - - 5,269 5,269 - 293,813 264,784 50,468 609,065 7,377 408,805 - 146,531 555,336 - - - - - 596,985 $ 19,839,978 $ 1,893,379 $ 2,200,719 $ 23,934,076 $ 22,154,858 - - 441,358 441,358 - 65,700 - 65,700 - 234,518,291 19,084,008 253,602,299 11,574,644 756,945 31,163 788,108 - $ 235,340,936 $ - $ 19,556,529 $ 254,897,465 $ 11,574,644 $ 255,180,914 $ 1,893,379 $ 21,757,248 $ 278,831,541 $ 33,729,502 The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-9 2008 Comprehensive Annual Financial Report LIABILITIES Current liabilities: Accounts payable Retainage payable Due to other funds Accrued interest payable Accrued employee wages and benefits payable Accrued taxes payable Custodial accounts Deferred revenue Revenue bonds payable Capital leases payable Total current liabilities Long-term liabilities: Revenue bonds payable Unamortized premium on revenue bonds Unamortized discount on revenue bonds Accrued employee wages and benefits payable Claims incurred but not reported Capital 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 NET ASSETS PROPRIETARY FUNDS December 31, 2008 Page 2 of 2 BUSINESS -TYPE ACTIVITIES 414,376 ENTERPRISE FUNDS GOVERNMENTAL OTHER TOTAL ACTIVITIES WATERWORKS ENTERPRISE ENTERPRISE INTERNAL SERVICE UTILITY SOLID WASTE FUNDS FUNDS FUNDS $ 278,638 $ 414,376 $ 224,894 $ 917,908 $ 482,829 130,463 - - 130,463 - - - 923 292,458 - - 292,458 - 247,496 16,832 50,228 314,556 52,871 37,229 48,492 36,050 121,771 (405) 32,159 - 125,149 157,308 - 134,788 88,113 222,901 1,890,000 310,000 2,200,000 - - 31,187 31,187 - $ 3,043,231 $ 479,700 $ 865,621 $ 4,388,552 $ 536,218 $ 38,910,000 $ - $ 2,200,000 $ 41,110,000 $ - 675,662 - 675,662 (799,758) - (212,188) (1,011,946) - 503,083 23,359 89,874 616,316 923,930 - - - - 2,926,675 - 23,993 23,993 - 9,171,235 - - 9,171,235 - $ 48,460,222 $ 23,359 $ 2,101,679 $ 50,585,260 $ 3,850,605 $ 51,503,453 $ 503,059 $ 2,967,300 $ 54,973,812 $ 4,386,823 $ 184,671,152 $ - $ 16,762,203 $ 201,433,355 $ 11,574,644 3,730,167 - 3,730,167 - - - 441,358 441,358 - 15,276,142 1,390,320 1,586,387 18,252,849 17,768,035 $ 203,677,461 $ 1,390,320 $ 18,789,948 $ 223,857,729 $ 29,342,679 The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-10 2008 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, 2008 NON-OPERATING REVENUES(EXPENSES) Intergovernmental revenues $ - $ 264,784 BUSINESS -TYPE ACTIVITIES $ 264,784 $ 19,675 Investment earnings 1,022,711 25,113 ENTERPRISE FUNDS 1,120,340 GOVERNMENTAL Gain (loss) on sale of capital assets (59,111) - (6,749) OTHER TOTAL ACTIVITIES 18,876 1,190 WATERWORKS 35,785 ENTERPRISE ENTERPRISE INTERNAL SERVICE - (134,594) UTILITY SOLID WASTE FUNDS FUNDS FUNDS OPERATING REVENUES: (130,225) - NON-OPERATING REVENUE NET OF EXPENSE $ (1,280,162) $ 291,087 $ (87,872) Charges for services $ 30,328,794 $ 10,262,639 $ 3,349,095 $ 43,940,528 $ 11,178,965 Interdepartmental services 559,415 4,460 - 563,875 - Other services 241,493 - 241,493 11,498,439 TOTAL OPERATING REVENUES $ 31,129,702 $ 10,267,099 $ 3,349,095 $ 44,745,896 $ 22,677,404 OPERATING EXPENSES: Operations and maintenance $ 6,194,147 $ 1,306,373 $ 1,845,626 $ 9,346,146 $ 3,030,509 Benefit payments 1,529,215 113,734 419,684 2,062,633 12,242,087 Professional services 156,492 9,337,773 48,452 9,542,717 909,785 Administrative and general 13,253,116 137,965 716,990 14,108,071 2,044,990 Insurance 62,400 - 60,520 122,920 1,217,146 Taxes 2,571,067 622,202 129 3,193,398 - Depreciation 6,709,291 807,971 7,517,262 517,357 TOTAL OPERATING EXPENSES $ 30,475,728 $ 11,518,047 $ 3,899,372 $ 45,893,147 $ 19,961,874 OPERATING INCOME (LOSS) $ 653,974 $ (1,250,948) $ (550,277) $ (1,147,251) $ 2,715,530 NON-OPERATING REVENUES(EXPENSES) Intergovernmental revenues $ - $ 264,784 $ - $ 264,784 $ 19,675 Investment earnings 1,022,711 25,113 72,516 1,120,340 748,261 Gain (loss) on sale of capital assets (59,111) - (6,749) (65,860) 45,045 Other non-operating revenues (expenses; 18,876 1,190 15,719 35,785 914,023 Interest expense (2,167,177) - (134,594) (2,301,771) (22,700) Amortization of debt discount and expense (95,461) - (34,764) (130,225) - NON-OPERATING REVENUE NET OF EXPENSE $ (1,280,162) $ 291,087 $ (87,872) $ (1,076,947) $ 1,704,304 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS $ (626,188) $ (959,861) $ (638,149) $ (2,224,198) $ 4,419,834 Capital contributions $ 6,731,040 $ $ 179,292 $ 6,910,332 $ - Transfers in (out) (110,000) - (110,000) 257,000 CHANGE IN NET ASSETS $ 5,994,852 $ (959,861) $ (458,857) $ 4,576,134 $ 4,676,834 NET ASSETS, JANUARY 1 $ 188,479,068 $ 2,350,181 $ 19,248,805 $ 210,078,054 $ 24,665,845 Prior Year Adjustment 9,203,541 - 9,203,541 - NET ASSETS, JANUARY 1 RESTATED 197,682,609 2,350,181 19,248,805 219,281,595 24,665,845 NET ASSETS, DECEMBER 31 $ 203,677,461 $ 1,390,320 $ 18,789,948 $ 223,857,729 $ 29,342,679 The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-11 2008 Comprehensive Annual Financial Report STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2008 Page 1 of 2 City of Renton, Washington The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-12 BUSINESS -TYPE ACTIVITIES ENTERPRISE FUNDS GOVERNMENTAL OTHER TOTAL ACTIVITIES WATERWORKS ENTERPRISE ENTERPRISE INTERNAL SERVICE UTILITY SOLID WASTE FUNDS FUNDS FUNDS CASH FLOWS FROM OPERATING ACTIVITIES: Cash received for services $ 30,367,387 $ 10,566,802 $ 3,421,904 $ 44,356,093 $ 22,693,578 Cash received from other funds for services 696,315 - - 696,315 - Cash paid to suppliers for goods & services (22,512,091) (12,499,433) (2,595,575) (37,607,099) (3,138,836) Cash paid to other funds for goods & services (6,905) (6,905) Cash paid to employees (1,377,182) (105,971) (407,348) (1,890,501) (12,137,918) Other operating receipts 1,225,835 (38,684) 1,187,151 (3,690,911) Other non-operating receipts (40,235) - (125,624) (165,859) (232,432) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 7,127,289 $ (812,767) $ 254,673 $ 6,569,195 $ 3,493,481 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds $ (110,000) $ $ - $ (110,000) $ (60,000) NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES $ (110,000) $ $ $ (110,000) $ (60,000) CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: Acquisition & construction of capital assets $ (13,393,040) $ $ (294,994) $ (13,688,034) $ (4,100,399) Principal payments on debt 9,568,358 (310,000) 9,258,358 Interest payments on debt (2,263,300) 3,098 (2,260,202) NET CASH PROVIDED (USED) BY CAPITAL FINANCING ACTIVITIES $ (6,087,982) $ $ (601,896) $ (6,689,878) $ (4,100,399) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of investments $ (3,835,500) $ $ $ (3,835,500) $ - Payments for investments - 502,379 502,379 3,440,726 Interest on investments 1,014,125 29,287 22,143 1,065,555 312,957 NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES $ (2,821,375) $ 531,666 $ 22,143 $ (2,267,566) $ 3,753,683 NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS $ (1,892,068) $ (281,101) $ (325,080) $ (2,498,249) $ 3,086,765 CASH & CASH EQUIVALENTS, JANUARY 1 2,797,689 879,629 1,403,781 5,081,099 6,379,653 RESTRICTED CASH, JANUARY 1 1,395,309 - - 1,395,309 - CASH , RESTRICTED CASH ,& CASH EQUIVALENTS, DECEMBER 31 $ 2,300,930 $ 598,528 $ 1,078,701 $ 3,978,159 $ 9,466,418 The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-12 2008 Comprehensive Annual Financial Report City of Renton, Washington STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2008 Page 2 of 2 BUSINESS -TYPE ACTIVITIES GOVERNMENTAL ENTERPRISE FUNDS ACTIVITIES OTHER TOTAL INTERNAL WATERWORKS SOLID ENTERPRISE ENTERPRISE SERVICE UTILITY WASTE FUNDS FUNDS FUNDS RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) $ 653,974 $ (1,250,948) $ (550,277) $ (1,147,251) $ 2,715,530 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation & amortization of deferred charges $ 6,709,291 $ - $ 807,971 $ 7,517,262 $ 517,357 Other non-operating revenue (40,235) 265,974 (125,624) 100,115 956,043 (Increase) decrease in accounts receivable (202,900) 299,703 18,552 115,355 16,174 (Increase) decrease in due from other funds/governmental units 136,900 (121,301) (38,684) (23,085) 4,953 (Increase) decrease in inventory & prepaid items (57,412) (54,463) (111,875) (221,159) Increase (decrease) in vouchers retainage payable 34,616 14,636 49,252 (816,928) Increase (decrease) in due to other funds/governmental units (6,905) - (6,905) Increase (decrease) in payables & other short-term liabilities (191,592) (13,958) 114,636 (90,914) (3,817) Increase (decrease) in customer deposits 12 12 Increase (decrease) in deferred revenues (60,481) - 55,578 (4,903) - Increase (decrease) in accrued employee leave benefits 152,033 7,763 12,336 172,132 325,328 Total adjustments $ 6,473,315 $ 438,181 $ 804,950 $ 7,716,446 $ 777,951 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 7,127,289 $ (812,767) $ 254,673 $ 6,569,195 $ 3,493,481 NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES Prior Period Adjustment 9,203,541 - 9,203,541 - Contributions of capital assets 6,731,040 179,292 6,910,332 Net amort. bond prem. discount & bond issue costs 95,461 34,764 130,225 - Depreciation 6,709,291 807,971 7,517,262 517,357 The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-13 2008 Comprehensive Annual Financial Report STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS December 31, 2008 ASSETS Cash & cash equivalents Investments at fair value: Federal National Mortgage Association US Treasury Strips 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 AGENCY FIREFIGHTER'S SPECIAL PENSION DEPOSITS $ 1,182,339 $ 840,466 134,821 - 4,744,087 2,879,530 - $ 8,940,777 $ 840,466 $ - $ 31,935 808,531 $ $ 840,466 $ 8,940,777 $ City of Renton, Washington The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-14 2008 Comprehensive Annual Financial Report STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIREMEN'S PENSION FUND For the Year Ended December 31, 2008 PENSION TRUST FIREMEN'S PENSION ADDITIONS: Other contributions: Fire insurance premiums transferred in $ 85,950 Investment income Investment earnings 1,218,067 TOTAL ADDITIONS $ 1,304,017 DEDUCTIONS: Benefit payments Medical benefit payments Administrative and general TOTAL DEDUCTIONS NETINCREASE(DECREASE) NET ASSETS - JANUARY 1 NET ASSETS - DECEMBER 31 $ 512,263 9,573 10,321 $ 532,157 $ 771,860 $ 8,168,917 $ 8,940,777 City of Renton, Washington The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-15 2008 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS January 1, 2008 through December 31, 2008 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES City of Renton, Washington 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 had 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-16 2008 Comprehensive Annual Financial Report City of Renton, Washington During 2008 the City of Renton annexed several communities that were identified as Potential Annexation Areas (PAA). These annexations increased the City's capital assets by $110,945,752. See Capital Assets and Depreciation (Note 5) for details. 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 - 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 The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-17 2008 Comprehensive Annual Financial Report City of Renton, Washington 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 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. MAJOR FUNDS 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. CAPITAL INVESTMENT 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-18 2008 Comprehensive Annual Financial Report ENTERPRISE FUNDS . 1 ti NMN 0 1 WW4 City of Renton, Washington 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. 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. 1% FOR ART FUND The City of Renton established this fund by contributing one percent of general governmental capital project funding for art projects. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-19 2008 Comprehensive Annual Financial Report City of Renton, Washington CABLE COMMUNICATIONS DEVELOPMENT FUND The Cable Communications Development Fund accounts for funding for promotion and development of cable communications as established by City ordinance. DEBT SERVICE FUNDS GENERAL GOVERNMENTAL MISCELLANEOUS DEBT SERVICE FUND Accounts for debt service on installment contracts for equipment, City Shop land purchase, the 1984 and 1985 Limited General Obligation Bond issue for equipment and the 1986 Limited Bond issue to finance a community center, library improvements, permanent financing for purchase of a golf course, acquisition of wetland property, and equipment. This fund also includes the 1978 Limited General Obligation Bond Redemption issue to account for debt service on a Council -approved bond, which provided partial funding for construction of the Renton Senior Activity Center and the 1978 Limited General Obligation Bond Redemption issue to account for debt service on a Council -approved bond, which provided partial funding for construction of the Renton Senior Activity Center. 1989 UNLIMITED GENERAL OBLIGATION BOND REDEMPTION 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. TRANSPORTATION IMPACT MITIGATION FUND Accounts for monies collected from developers to offset impacts created by their developments to City facilities MUNICIPAL FACILITIES CONSTRUCTION FUND The Municipal Facilities Construction Fund accounts for the acquisition and development of municipal facilities. Resources included general and special revenue taxes and Council - approved general obligation bonds. 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 that will provide for the design, construction, labor wages and benefits, and equipment required to implement the project. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-20 2008 Comprehensive Annual Financial Report ENTERPRISE FUNDS City of Renton, Washington 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. It 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, computers, and auxiliary equipment except for fire apparatus and replacement of police patrol vehicles. The fund also accounts for communication, data support, and printing services provided to City employees. All equipment costs, including depreciation, are factors in calculating the rates, which 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. 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-21 2008 Comprehensive Annual Financial Report AGENCY FUND City of Renton, Washington 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. C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING 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. 2. Modified Accrual The governmental fiends 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 The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-22 2008 Comprehensive Annual Financial Report City of Renton, Washington 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. Activity between funds that are representative of lendingiborrowing 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 is the unamortized portion of the excess of bonds proceeds over their face value (excluding accrued interest and issuance costs). Deferred Amount -Refunding is 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-23 2008 Comprehensive Annual Financial Report City of Renton, Washington 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 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. Fund Reserved Purpose of Reservation Amount General Fund Prepaid Postage $ 8,000 Municipal Facilities Interfund loan receivable 1,000,000 CIP TOTAL $ 1,008,000 The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-24 2008 Comprehensive Annual Financial Report City of Renton, Washington Fund Designated Purpose of Designation Amount Totals General Fund Operating cash reserves $6,184,384 General Fund Operating reserves for Community 1,060,647 Services General Fund Operating reserves for Streets 805,407 General Fund Designated for CDBG projects 44,981 General Fund Operating reserves for Library/Museum 202,721 General Fund Designated for Farmers Market 53,632 General fund Designated for Fire Memorial 55,852 General Fund Designated for Fire Wellness 34,153 General Fund Designated for Park Memorial 173,453 $8,615,230 Arterial Street Fund Construction and improvements of 552,576 streets Leased City Properties Fund Leased Property 1,239,206 Hotel/Motel Tax Fund Increase Tourism 321,093 Paths and Trails Fund Acquisition and maintenance of paths 3,243 and trails 1% For Art Fund Funding for art projects 121,678 Cable Communications Development Fund Promotion and development of cable 112,369 communications Springbrook Wetlands Bank Sale of Wetland Credits 456,502 2,806,667 General Governmental Miscellaneous Debt Parking Garage Construction 673,529 Service 1989 Unlimited General Obligation Bond Low income housing 597,407 1,270,936 Redemption Fund Community Development Impact Offset impact created by new 1,688,926 Mitigation Fund development Fire Impact Mitigation Fund Offset impact created by new 2,483,647 Transportation Mitigation Fund Offset impact created by new 3,576,947 Municipal Facilities Fund Acquisition and development of City 12,774,100 facilities Capital Improvement Fund City infrastructure 8,491,406 South Lake Washington 202,358 29,217,384 TOTAL $41,910,217 $41,910,217 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-25 2008 Comprehensive Annual Financial Report City of Renton, Washington 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 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-26 2008 Comprehensive Annual Financial Report City of Renton, Washington 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 twenty-seven times during 2008. Original budgeted inflows as compared to the final budgeted inflows are as follows: The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-27 Increase Original Final (Decrease) Budgeted Budgeted Budgeted Fund Inflows Inflows Inflows General Fund $90,046,254 $94,206,787 $4,160,533 Arterial Street Fund 585,000 585,000 - Leased City Properties Fund 1,237,703 1,237,703 - Hotel/Motel Tax Fund 307,000 307,000 - 1% for Art Fund 77,505 77,505 - Cable Communications Development Fund 38,900 38,900 - General Government Miscellaneous Debt Service Fund 4,269,400 4,269,400 - 1989 UGO Bond Redemption Fund 555,000 555,000 - Community Development Impact Mitigation Fund 255,000 255,000 - Fire Impact Mitigation Fund 540,000 540,000 - Transportation Impact Mitigation Fund 750,000 750,000 - Municipal Facilities Construction Fund 3,679,723 6,413,418 2,733,695 General Government Capital Investment Program Fund 27,235,324 43,565,800 16,330,476 South Lake Washington Infrastructure Project Fund - 3,321,211 3,321,211 Airport Fund 2,708,713 2,708,713 - Solid Waste Utility Fund 10,097,267 10,097,267 - Golf Course Fund 2,681,420 2,681,420 - Waterworks Utility Fund 36,867,722 62,928,116 26,060,394 Equipment Repair and Replacement / IS / Facilities Fund 11,285,713 10,735,713 (550,000) Insurance Fund 13,883,116 13,883,116 - TOTAL $207,100,760 $259,157,069 $52,056,309 The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-27 2008 Comprehensive Annual Financial Report City of Renton, Washington Original budgeted outflows as compared to the final budgeted outflows are as follows: Fund Increase Original Final (Decrease) Budgeted Budgeted Budgeted Outflows Outflows Outflows General Fund $90,822,783 $96,560,335 $5,737,552 Arterial Street Fund 585,000 585,000 - Leased City Properties Fund 1,146,836 1,181,680 34,844 Hotel/Motel Tax Fund 267,000 347,000 80,000 1% for Art Fund 77,505 141,698 64,193 Cable Communications Development Fund 74,778 88,004 13,226 General Government Miscellaneous Debt Service Fund 4,269,400 4,269,400 - 1989 UGO Bond Redemption Fund 548,750 548,750 - Community Development Impact Mitigation Fund - 111,875 111,875 Fire Impact Mitigation Fund 300,000 300,000 - Transportation Impact Mitigation Fund 1,873,229 5,300,000 3,426,771 Municipal Facilities Construction Fund 13,708,000 19,057,785 5,349,785 General Government Capital Investment Program Fund 29,928,671 46,428,715 16,500,044 South Lake Washington Infrastructure Project Fund 50,000 2,296,000 2,246,000 Airport Fund 3,258,192 4,213,971 955,779 Solid Waste Utility Fund 11,184,614 11,279,614 95,000 Golf Course Fund 2,738,431 2,885,721 147,290 Waterworks Utility Fund 47,496,939 70,885,454 23,388,515 Equipment Repair and Replacement / IS / Facilities Fund 11,939,283 13,734,966 1,795,683 Insurance Fund 13,861,706 13,921,706 60,000 TOTAL $234,131,117 $294,137,674 $60,006,557 At year-end 2008, the City of Renton noted the Solid Waste Utility Fund exceeded its final adopted budget by approximately $238,433. 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 (updated and approved on June 5, 2006), 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 The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-28 2008 Comprehensive Annual Financial Report City of Renton, Washington of 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 20 -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, 2008, the City of Renton had the following investments: Reconciliation of Cash and Investments to Statements of Net Assets Primary Weighted Average Government Fiduciary Funds Maturity Security Type Cost Fair Value (in years) US Agencies $14,049,463 $14,177,850 0.2544 Certificates of Deposit (within WPDPC) 33,044,882 33,044,882 0.4016 Local Governmental Investment Pool (LGIP) 13,480,100 13,480,100 0.0008 TOTAL $60,574,445 $60,702,832 0.6567 Fireman's Pension Portion ofLGIP excluded from above 454,767 454,767 $ 2,022,805 Total LGIP reported as Cash & Cash Equivalents in Statement of Net Assets 13,934,867 13,934,867 Total Investments $61,029,211 $61,157,599 Reconciliation of Cash and Investments to Statements of Net Assets Primary Government Fiduciary Funds Statement of Net Statement of Net Assets Assets Variance Total Note (plus Cash) Cash $ 14,038,726 $ 1,568,038 $ 180 $ 15,606,944 $ 15,606,944 Cash Equivalents $ 13,480,100 $ 454,767 $ - $ 13,934,867 $ 13,934,867 Total Cash $ 27,518,826 $ 2,022,805 $ 180 $ 29,541,811 $ 29,541,811 Investments $ 46,782,579 $ - $ - $ 46,782,579 $ 14,177,850 Restricted investments $ 440,153 $ - $ - $ 440,153 $ 33,044,882 Total Investments $ 47,222,732 $ - $ - $ 47,222,732 $ 47,222,732 Grand Total $ 74,741,558 $ 2,022,805 $ 180 $ 76,764,543 $ 76,764,543 Items in bold may be found in "Security Types "table, above Fair Value Total. $ 60,702,832 The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-29 2008 Comprehensive Annual Financial Report City of Renton, Washington Credit risk. Credit Risk is the risk that an issuer or other counterparty 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 Federal National Mortgage Association $7,032,445 $7,006,580 Aaa AAA Federal Home Loan Bank 2,019,368 2,043,120 Aaa AAA Federal Farm Credit Bank 4,997,650 5,128,150 Aaa AAA Local Governmental Investment Pool (LGIP) 7,738,375 7,738,375 unrated unrated Municipal Investor Account (MIA) 5,741,725 5,741,725 unrated unrated Certificates of Deposit (within WPDPC) 33,044,882 33,044,882 unrated unrated TOTAL $60,574,445 $60,702,832 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: Maximum's per Policy Instrument Maximum Issuer Maximum U.S. Treasuries 100% 100% U.S. Agencies 75% 50% Certificates of Deposit (within WPDPC) 50% 25% Local Governmental Investment Pool (LGIP) 50% 50% Commercial Paper 25% 5% The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-30 2008 Comprehensive Annual Financial Report City of Renton, Washington 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. NOTE 4. PROPERTY TAXES 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 $3.375 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 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 The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-31 0-6 6 months — 1-3 3+ Security Type months 1 year years years Totals US Agencies $ - $4,997,650 $9,051,813 $ - $14,049,463 Certificates of Deposit (within WPDPC) 17,000,000 7,044,882 9,000,000 - 33,044,882 Local Governmental Investment Pool 13,480,100 - - - 13,480,100 (LGIP) TOTAL $30,480,100 $12,042,532 $18,051,813 $ - $60,574,445 NOTE 4. PROPERTY TAXES 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 $3.375 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 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 The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-31 2008 Comprehensive Annual Financial Report City of Renton, Washington 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 POLICES 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. 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-32 2008 Comprehensive Annual Financial Report City of Renton, Washington 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 Depreciation Expense was charged to governmental and business -type activities as follows: Governmental Activities Amount General government $2,317,396 Judicial - Security of persons and property 755,905 Physical environment 9,588 Transportation 3,663,590 Economic development 47,540 Culture and recreation 1,398,149 Health and human services 308,607 Fleet 452,065 TOTAL Governmental Activities Depreciation Expense $8,952,840 Business -type Activities Amount Waterworks $6,709,291 Airport 470,301 Solid waste - Golf course 337,670 TOTAL Business -type Activities Depreciation Expense $7,517,262 The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-33 2008 Comprehensive Annual Financial Report E. SUMMARY OF CHANGES Description Beginning Reclassification Additions for Balance Adjustments Change in during System Reporting Conversion Entity City of Renton, Washington Adjusted Increases Decreases Ending Beginning Adjustments Balance Balance GOVERNMENTAL ACTIVITIES Capital assets not being depreciated: Land and land $ 88,947,494 $ $ 84,439,578 $173,387,072 $2,172,848 $ - $175,559,920 improvements Construction in progress 41,893,039 - 41,893,039 18,495,058 30,475,600 29,912,497 TOTAL capital not being $130,840,533 $ - $ 84,439,578 $215,280,111 $20,667,906 $30,475,600 $205,472,417 Other capital assets: $274,001,613 $ - $105,331,637 $379,333,250 $48,409,125 $30,475,600 $397,266,775 Buildings and structures $74,351,604 ($2,976,098) $ - $71,375,506 $1,222,187 $ $72,597,693 Other improvements 116,506,866 2,701,281 20,891,389 140,099,536 29,784,300 169,883,836 Machinery and equipment 29,106,354 274,817 - 29,381,171 5,687,572 35,068,743 TOTAL other capital $219,964,824 $ $ 20,891,389 $240,856,213 $36,694,059 $ - $277,550,272 assets at capitalized cost Less accumulated depreciation for: $ 6,976,321 $ $ $ 6,976,321 $ - $ - $ 6,976,321 Buildings and structures $21,994,722 $121,677 $ $22,116,399 $1,885,079 $ $ 24,001,478 Other improvements 37,930,725 -210,867 37,719,858 5,095,801 2,149,014 42,815,659 Machinery and equipment 16,878,297 89,190 -670 16,966,817 1,971,960 $2,149,014 18,938,777 TOTAL accumulated $76,803,744 $ - $ -670 $ 76,803,074 $ 8,952,840 $ - $ 85,755,914 Governmental activities $274,001,613 $ - $105,331,637 $379,333,250 $48,409,125 $30,475,600 $397,266,775 capital assets, net of depreciation BUSINESS -TYPE ACTIVITIES Capital assets not being depreciated: Land and land $ 6,976,321 $ $ $ 6,976,321 $ - $ - $ 6,976,321 improvements Construction in progress 5,699,290 5,699,290 6,464,495 2,149,014 10,014,741 TOTAL capital assets not $12,675,611 $ - $ - $12,675,611 $ 6,464,465 $2,149,014 $16,9919062 being depreciated Other capital assets Buildings and structures $15,032,621 $ 1,044,463 $- $ 16,077,084 $ 727,971 $ - $ 16,805,055 Other improvements 280,522,813 -1,044,463 8,151,248 287,629,598 19,456,835 326,795 306,759,638 Machinery and equipment 5,938,255 - 5,938,255 58,912 6,746 5,990,421 TOTAL other capital $30 $ - $8,151,248 $309,644,937 $20,243,718 $333,541 $329,555,114 assets at capitalized cost 1,493,689 Less accumulated depreciation for: Buildings and structures $4,233,610 $18,512 $40 $4,252,082 $422,533 $ $4,674,615 Other improvements 73,558,825 -18,512 2,537,173 76,077,486 6,966,944 83,044,430 Machinery and equipment 5,059,209 - - 5,059,209 165,622 5,224,831 TOTAL accumulated $82,851,644 $ - $2,537,133 $85,388,777 $7,555,099 $ - $92,943,876 depreciation Business -type capital $231,317,656 $ - $5,614,115 $236,931,771 $19,6469576 $2,976,047 $253,602,300 assets, net of deureciation The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-34 2008 Comprehensive Annual Financial Report City of Renton, Washington At the end of 2008, 50 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 at December 31, 2008, are as follows: NOTE 6. PENSION PLANS 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-35 Estimated Future Cost to Remaining Estimated Funding Fund — Funding Source Date Cost Total Cost Required Waterworks — charges for services $9,031,341 62,210,000 71,241,341 None Airport — charges for services 805,389 11,730,000 12,535,389 None General governmental — taxes, charges for 69,360,223 190,513,335 259,873,558 None services, grants Golf course — charges for services 51,202 2,272,000 2,326,202 None NOTE 6. PENSION PLANS 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-35 2008 Comprehensive Annual Financial Report City of Renton, Washington 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 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. 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-36 2008 Comprehensive Annual Financial Report City of Renton, Washington 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 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-37 2008 Comprehensive Annual Financial Report City of Renton, Washington Membership in PERS consisted of the following as of the latest actuarial valuation date for the plans of June 30, 2007: Retirees and beneficiaries receiving benefits 71,244 Terminated plan members entitled to but not yet receiving benefits 26,583 Active plan members vested 105,447 Active plan members non -vested 52,575 TOTAL 255,849 There are 2,310 participating employers in PERS as of June 30, 2008. 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 6 percent for state 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, 2008, were as follows: Members not participating in JBM: Contributor PERS Plan 1 PERS Plan 2 PERS Plan 3 Employer* 8.31%** 8.31%** 8.31*** Employee 6.00%**** 5.45%**** ***** * 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 in 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-38 2008 Comprehensive Annual Financial Report Members participating in JBM: City of Renton, Washington Contributor PERS Plan 1 PERS Plan 2 PERS Plan 3 Employer -State Agency* 10.81% 10.81% 10.81%** Employer -Local Govt.* 8.31% 8.31% 8.31** Employee -State Agency 9.76% 11.13% 7.50%*** Employee -Local Govt. 12.26% 13.63% 7.50%*** * The employer rates include the employer administrative expense fee currently at .16%. ** Plan 3 defined benefit portion only. *** Minimum rate. 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 2008 $75,956 $1,692,603 $287,302 2007 $85,411 $1,229,641 $196,584 2006 $50,609 $616,903 $92,216 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 benefits 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 notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-39 2008 Comprehensive Annual Financial Report City of Renton, Washington 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). 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 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, 2007: Retirees and beneficiaries receiving benefits 9,085 Terminated plan members entitled to but not yet receiving benefits 633 Active plan members vested 12,904 Active plan members non -vested 3,708 TOTAL 26,330 There are 461 participating employers in LEOFF as of June 30, 2008. Funding PP licy 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, 2008, were as follows: Contributor LEOFF Plan 1 LEOFF Plan 2 Employer* .16% 5.46%** Employee .00% 8.83% State N/A 3.53% * The employer rates include the employer administration expense fee currently at .16%. ** The employer rate for ports and universities is 8.99%. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-40 2008 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 2008 $1,348 $1,200,963 2007 $1,676 $891,932 2006 $2,050 $716,583 Public Safety Employee's Retirement SystemPSERS. 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 or 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. Plan 2 members are vested after the completion of five years of eligible service. PSERS 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 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 prior to the age of 60 The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-41 2008 Comprehensive Annual Financial Report City of Renton, Washington 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, 2007: Retirees and beneficiaries receiving benefits 0 Terminated plan members entitled to but not yet receiving benefits 0 Active plan members vested 0 Active plan members non -vested 2,755 TOTAL 2,755 There are 71 participating employers in PSERS as of June 30, 2008. Funding Pqlicy 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, 2008 were as follows: Contributor PSERS Plan 2 Employer* 9.43% Employee 6.57% 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 2008 $63,747 2007 $41,424 2006 $8,006 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 The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-42 2008 Comprehensive Annual Financial Report City of Renton, Washington 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, 2008, there were 40 members in the System: Retirees and beneficiaries receiving benefits 38 Retirees and beneficiaries currently receiving full retirement through LEOFF 2 Active plan members vested 0 Active Dlan members non -vested 0 TOTAL 40 Funding Pqlicy 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 2008, this cost was $10,321. 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: * A $29 decrease in the actuarial accrued liabilities was made after the City's financial report was published and before the valuation was released. 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 notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-43 Unfunded Actuarial Actuarial Actuarial Value of Accrued Accrued Covered UAAL Assets Liabilities Liabilities Payroll as Valuation (rounded Entry Age (UAAL) (rounded a % of Date to (rounded to (rounded Funded to Covered January 1 thousands) thousands) to Ratio thousands) Payroll 1997 $5,238 $6,444 $1,206 81% $260 464% 2001 7,067 6,780 (287) 104% - - 2003 9,189 6,472 (2,717) 142% - - 2005 7,777 6,254 *(1,523) 124% - - 2007 7,847 6,364 (1,483) 123% - - * A $29 decrease in the actuarial accrued liabilities was made after the City's financial report was published and before the valuation was released. 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 notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-43 2008 Comprehensive Annual Financial Report City of Renton, Washington 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. Fiscal Year Fiscal Year Fiscal Year Annual required contribution (ARC) Ending 12/31/2006 Ending 12/31/2007 Ending 12/31/2008 Annual normal cost (BOY) Amortization of UAAL (BOY) Interest to end of year (EOY)* $ - (107,622) (5,919) $ - (104,731) (5,237) $ - (104,731) (5,237) ARC at EOY ($113,541) ($109,968) ($109,968) Interest on NPO Adjustment to ARC ($33,604) (44,035) ($38,658) (54,591) ($46,349) (67,070) Annual pension cost (APC) ($103,110) ($94,035) ($89,247) Employer contributions** Change in NPO $59,068 (162,178) $59,777 (153,812) $66,055 (155,302) NPO at BOY prior year ($610,988) ($773,166) ($926,978) NPO at EOY ($773,166) ($926,978) ($1,082,280) * Assumed interest rate: 5.5% in 2006 and 5.0% in 2007and 2008. ** Employer contributions are total contributions to the fund net of disbursements for medical and administrative expenses. The Annual Development of Pension Cost is recapped as follows: Fiscal Year $(179,836) $ (63,088) 14.0032 Annual Total Change Ending ARC @ Interest on ARC Pension Employer in 12/31 EOY NPO Adjustment Cost (APC) Contributions NPO 2003 $ - $ (7,088) $ (8,433) $ 1,347 $ 63,088 $(61,741) 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) Fiscal Year Ending December NPO 31 Balance (Gain)/ Amort. Loss Factor** Amort. of (Gain)/ Ending Loss Balance 2003 $(179,836) $ (63,088) 14.0032 $ (8,433) $ (179,836) 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) The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-44 2008 Comprehensive Annual Financial Report City of Renton, Washington Three year trend information is recapped as follows: Employees are not required to make contributions. The contributions to the System for 2008 include $85,949 from fire insurance premiums and $1,218,067 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 2008, $512,263 was paid for benefit payments and $9,573 for medical payments. The Net Pension Obligation moves from ($926,978) to ($1,082,280) 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 As required by 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 before October 1, 1977 under a defined benefit healthcare plan administered by the City. 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. Dependents do not receive LEOFF 1 postemployment healthcare benefits. 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. Membership Membership in this program includes Plan 1 participants of LEOFF who joined the system by September 30, 1977. As of December 31, 2008, 103 retirees met those eligibility requirements. This is considered a closed group with no new members, with the exception of 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. Retirees are not required to contribute any portion of the cost coverage. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-45 Contribution Net Fiscal Year Annual as a Pension Ending Pension Percentage Obligation December 31 Cost (APC) of APC (NPO) 2006 $ (103,110) N/A $ (773,166) 2007 (94,035) N/A (926,978) 2008 (89,247) N/A (1,082,280) Employees are not required to make contributions. The contributions to the System for 2008 include $85,949 from fire insurance premiums and $1,218,067 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 2008, $512,263 was paid for benefit payments and $9,573 for medical payments. The Net Pension Obligation moves from ($926,978) to ($1,082,280) 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 As required by 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 before October 1, 1977 under a defined benefit healthcare plan administered by the City. 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. Dependents do not receive LEOFF 1 postemployment healthcare benefits. 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. Membership Membership in this program includes Plan 1 participants of LEOFF who joined the system by September 30, 1977. As of December 31, 2008, 103 retirees met those eligibility requirements. This is considered a closed group with no new members, with the exception of 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. Retirees are not required to contribute any portion of the cost coverage. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-45 2008 Comprehensive Annual Financial Report City of Renton, Washington Annual OPEB Cost and Net OPEB Obligation The City's annual other postemployment benefit (OPEB) cost is calculated based upon 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 of 30 years as of January 1, 2008. 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. Determination of Required Annual Contribution: Normal Cost Amortization of UAAL* Annual Required Contribution (ARC) Determination of Net OPEB Obligation: Annual Required Contribution (ARC) Interest on net OPEB Obligation Adjustment to ARC Annual OPEB Cost Contributions Made Increase in net OPEB Obligation Net OPEB Obligation — Beginning of Year Net OPEB Obligation — End of Year *Unfunded Actuarial Accrued Liability (URAL) Fiscal Year Ending 12/31/2008 $154,545 $1,869,523 $2,024,068 $2,024,068 $2,024,068 ($1,266,192) $757,876 $757,876 The net OPEB obligation of $757,876 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 2008 were as follows: Percentage of Annual OPEB Employer OPEB Cost Net OPEB Cost Contribution Contributed Obligation 2008 $2,024,068 $1,266,192 59.85% $757,876 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 $32,327,794 and the actuarial value of the assets was $0 resulting in a UAAL of $32,327,794. The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-46 2008 Comprehensive Annual Financial Report City of Renton, Washington 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, 2008, expenditures of $1,266,192 were recognized for post-retirement health care. 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, 2008. 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: 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, 2008 was 29 years. NOTE 8. CONTINGENCIES Liti . ag tion 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-47 2008 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 2007 and 2008 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 2007 and 2008. The City continues to review rates and the business plan and strategy that aims to adjust and maintain coverage. 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: The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-48 2008 Comprehensive Annual Financial Report City of Renton, Washington Type of Coverage Risk Retention Occurrence Claims Administrator Aggregate Amount Carrier Property — Expires $ 25,000 WA Cities Ins $500,000,000 (per WA Cities Ins 01/01/2010 Authority occurrence subject to Authority 1/1/2010 annual aggregate & 150,000 HMA, Inc N/A 1/1/2009 sub -limits) Liability — Expires 250,000 WA Cities Ins 20,000,000 WA Cities Ins 01/01/2010 Authority (per occurrence) Authority Auto Liability — Expires 25,000 WA Cities Ins ACV or Replacement WA Cities Ins 01/01/2010 Authority Cost; per Occurrence Authority Public Officials (E&O) — 250,000 WA Cities Ins 15,000,000 WA Cities Ins Expires 01/01/2010 Jail (Police Professional Liability) - Expires 01/01/2010 Equipment breakdown — Expires 1/1/2010 Crime —Expires 12/31/2009 Authority 10,000 WA Cities Ins Authority 5,000* Arthur J. Gallagher 10,000 WA Cities Ins Authority 30,000,000 50,000,000 2,500,000 Airport liability — Expires - Arthur J. Gallagher 100,000,000 1/1/2010 Underground storage tank — 25,000 Arthur J. Gallagher 2,000,000 Expires 1/1/2010 Worker's comp — Expires 350,000 Berkley Risk 1,000,000 1/1/2010 Employee health — Expires 150,000 HMA, Inc N/A 1/1/2009 * There is a 4 -hour utility interruption clause, prior to the deductible becoming applicable Authority WA Cities Ins Authority Zurich National Union Fire Ace Property & Casualty Commerce & Industry Midwest Casualty SunLife 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 reinsurance and The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-49 2008 Comprehensive Annual Financial Report City of Renton, Washington 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, 2008, the City had accrued the following amounts for outstanding claims: The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-50 Total Claims Coverage Payable 12/31/2008 Property & liability $591,502 Worker's compensation 590,708 Employee health 1,722,915 TOTAL $2,904,675 The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-50 2008 Comprehensive Annual Financial Report City of Renton, Washington 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-51 Property & Worker's Employee 2008 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) 9,275,803 9,900,626 Claims payments (965,716) (63,877) (8,952,313) (9,981,906) IBNR claims at end of the year $591,052 $590,708 $1,722,915 $2,904,675 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-51 Property & Worker's Employee 2007 Liability Compensation Health Totals IBNR claims at beginning of the year $537,693 $765,089 $1,325,000 $2,627,782 Current year and changes in estimates 1,662,228 863,439 1,739,459 4,265,126 Claims payments (1,407,434) (834,485) (1,665,034) (3,906,953) IBNR claims at end of the year $792,487 $794,043 $1,399,425 $2,985,955 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-51 2008 Comprehensive Annual Financial Report City of Renton, Washington As of December 31, 2008, outstanding interfund balances (resulting from various interfund transactions) were as follows: Fund Receivables Due From Payables Due To Purpose Other Funds Other Funds General fund $ 922 Reclassification of expenditures between funds after 12/31/2008 $184,244 Reclassification of revenues between funds after 12/31/2008 Municipal Facilities 48,189 Reclassification of revenues between CIP funds after 12/31/2008 1989 Unlimit GO 94,249 Reclassification of revenues between Bonds Sr Housing funds after 12/31/2008 Airport Operations 5,269 Reclassification of expenditures between funds after 12/31/2008 Insurance 922 Reclassification of expenditures between funds after 12/31/2008 Special Hotel/ Motel 36,537 Reclassification of expenditures Tax between funds after 12/31/2008 TOTAL* $185,166 $185,166 *Difference is the result of rounding individual fund numbers in the aggregate. The following is a recap of interfund loans: Fund Municipal facilities CIP South Lake WA infrastructure Interfund loans Interfund Receivable loans Pavab $1,000,000 $ _ Interfund Loan to South lake WA infrastructure fund 1,000,000 Interfund Loan from Municipal facilities CIP fund TOTAL* $1,000,000 $ 1,000,000 The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-52 2008 Comprehensive Annual Financial Report Transfers for 2008 were as follows: City of Renton, Washington Transfer Fund In Transfer Out Purpose General $317,000 Contribution for Capital Equipment $579,503 Contribution for Capital Improvements and Establish Housing Opportunity Fund Arterial street Contribution for CIP Overlay Projects $585,000 Contribution for Capital Improvements Leased City Properties $386,000 Contribution for Capital Improvements General debt $300,000 Contribution from Fire Impact for Debt Payments Fire Impact Mitigation $300,000 Contribution for Fire Impact Debt Payments Transportation Impact Mitigation $2,223,229 Contribution to Transportation CIP Transportation CIP $2,868,229 Contribution for Capital Improvements $75,000 Contribution to Municipal CIP Fund for Capital Improvements Community Development Impact Mitigation $111,875 Municipal CIP $685,378 Contribution for Capital Improvements Housing Opportunity $200,000 Contribution from General Fund to Establish Fund Waterworks $110,000 Contribution for Capital Equipment TOTAL $4,370,607 $4,370,607 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. The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-53 2008 Comprehensive Annual Financial Report City of Renton, Washington B. Restricted 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 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 assets are as follows: Fund Purpose Amount Hotel / Motel Tax Tourism $321,093 Arterial Street Road construction 552,576 Cable Communications Cable development 112,369 Paths and Trails Acquire and maintain city trails 3,243 Springbrook Wetlands Bank Accounting for wetlands management 456,502 1% for Art Funding for art projects 121,678 Leased City Properties Leased to outside source 1,239,206 Community Development Impact Mitigation for park development 1,688,926 Municipal Facilities Capital projects 13,774,100 Capital Projects General governmental capital projects 8,491,406 South Lake Washington Construction infrastructure for SLW 202,358 Fire Impact Mitigation for fire improvements 2,483,647 Transportation Impact Mitigation for transportation projects 3,576,947 Waterworks Debt service reserves 3,730,167 Golf Course Debt service reserves 441,358 TOTAL $37,195,576 Unrestricted assets represent unrestricted liquid assets. The City's management may have plans or tentative commitments to expend resources certain purposes in future periods. Further legal action will be required to authorize the actual expenses or expenditures. NOTE 12. PRIOR YEAR RESTATEMENTS In 2008, the City of Renton annexed several communities identified as Potential Annexation Areas (PAA), transferring capital assets to the City from King County. The annexations resulted in a restatement of $105,330,297 in the General Governmental Funds and $5,613,984 in the Waterworks Utility Fund. In addition, there was restatement of $3,589,557 within the Waterworks Utility Fund for surface water infrastructure located at The Landing. NOTE 13. SHORT TERM DEBT The City of Renton's short-term debt consists of one interfund loan from the Municipal Facilities CIP Fund to the South Lake Washington Infrastructure Fund, as a means to temporarily fund the project prior to the receipt of contractual project revenues. This loan of an amount no greater than $2,000,000 is payable prior to September 15, 2009, and has an annual interest rate equal to the current rate of interest as established by the State of Washington Investment Pool at the time that each loan advance is made. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-54 2008 Comprehensive Annual Financial Report Short-term activities for the year ended December 31, 2008 was as follows: City of Renton, Washington Beginning Ending Balance Balance 12/31/2007 Debt 01/01/2007 Issued Redeemed $2,000,000 $975,000 $1,391,000 $1,366,000 $1,000,000 NOTE 14. LONG TERM DEBT The City of Renton's long-term debt consists of General Obligation Debt, repaid mainly from general governmental revenue sources and Proprietary Debt, repaid from proprietary revenues. 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. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-55 2008 Comprehensive Annual Financial Report City of Renton, Washington Outstanding debt issues as of December 31, 2008, are as follows: TOTAL GOVERNMENTAL -TYPE DEBT ISSUANCE $62,899,344 BUSINESS -TYPE DEBT: Revenue Bonds: 1998 Water/Sewer Refunding 4.46% Issued Maturity Original Issued Type of Debt Interest Rates Date Date Amount GOVERNMENTAL DEBT: 4.80% 07/01/02 12/01/22 3,660,000 General Obligation Bonds: 3.20% 09/15/03 06/01/13 8,035,000 Limited 4.33% 11/01/04 12/01/27 10,335,000 1997 GO Bonds 5.55%-5.75% 05/01/97 12/01/17 $14,697,744 2000 GO Valley Comm Bonds 4.30%-5.38% 09/15/00 12/01/15 2,551,600 2001 GO Refunding Bonds 2.10%-5.25% 11/01/01 12/01/17 13,505,000 2001 GO Bonds 5.0%-5.25% 11/01/01 12/01/21 6,000,000 2002 GO Bonds 2.50%-5.00% 7/15/02 12/01/22 3,895,000 2006 GO Bonds 4.25%-5.00% 8/08/06 12/01/28 17,980,000 SUBTOTAL LIMITED GO 2.00% 01/20/92 07/01/12 $58,629,344 Unlimited 1.00% 05/04/93 07/01/15 1,631,800 1993 GO Refunding Bonds - Senior Housing 5.20%-6.10% 09/01/93 02/01/09 4,270,000 SUBTOTAL UNLIMITED GO 2.00% 05/12/94 07/01/14 4,270,000 TOTAL GENERAL OBLIGATION BONDS 1.00% 05/15/95 07/01/15 $62,899,344 TOTAL GOVERNMENTAL -TYPE DEBT ISSUANCE $62,899,344 BUSINESS -TYPE DEBT: Revenue Bonds: 1998 Water/Sewer Refunding 4.46% 03/01/98 06/01/13 $6,120,000 1999 Golf System Refunding 4.96% 04/01/99 12/01/15 5,040,000 2002 Water/Sewer 4.80% 07/01/02 12/01/22 3,660,000 2003 Water/Sewer Refunding 3.20% 09/15/03 06/01/13 8,035,000 2004 Water/Sewer 4.33% 11/01/04 12/01/27 10,335,000 2007 Water/Sewer 4.00%-5.00% 11/06/07 12/01/22 1,430,000 2007 Water/Sewer Refunding 4.00%-5.00% 11/06/07 12/01/22 8,320,000 2008 Water/Sewer (a) 4.17% 01/04/08 12/01/27 9.975,000 2008 Water/Sewer (b) 4.17% 01/04/08 12/01/16 2,035,000 TOTAL REVENUE BONDS $54,950,000 Public Works Trust Fund Loans: Sierra Heights Sewer Improvements 2.00% 01/20/92 07/01/12 $888,462 Central Renton Sewer Replacement 1.00% 05/04/93 07/01/15 1,631,800 East Renton Interceptor 1.00% 06/07/93 07/01/13 2,542,704 Dayton Avenue NE 2.00% 05/12/94 07/01/14 96,958 NE 27`h/Aberdeen Drainage Improvements 1.00% 05/15/95 07/01/15 731,000 East Kennydale Interceptor 2.00% 01/24/98 07/01/16 2,093,740 Honeycreek Interceptor 2.00% 12/04/95 07/01/16 1,840,568 Corrosion Control Treatment Facilities 1.00% 01/06/97 07/01/17 1,106,000 Maplewood Water Treatment Improvement 0.50% 1/22/02 07/01/21 567,831 Construct CT Pipeline for Wells 0.50% 11/5/02 7/1/22 814,527 Maplewood Water Treatment Improvement 0.50% 06/03/04 07/01/24 4,892,500 TOTAL PUBLIC WORKS TRUST FUND LOANS $17,206,090 Leases: Golf Course Operating Lease 5.25 6/15/07 5/15/11 87,800 TOTAL BUSINESS -TYPE DEBT ISSUANCE $72,243,890 TOTAL AMOUNT ISSUED ON OUTSTANDING DEBT AS OF DECEMBER 31, 2008 $135,143,234 The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-56 2008 Comprehensive Annual Financial Report City of Renton, Washington For outstanding debt additions and retirements are summarized as follows: BUSINESS -TYPE DEBT Revenue Bonds: 1998 Water/Sewer Refunding Balance - 570,000 2,915,000 Balance Due Within GOVERNMENTAL DEBT 1/1/2008 Additions Deductions 12/31/2008 One Year Limited General Obligation Debt 3,120,000 455,000 2003 Water/Sewer Refunding 3,800,000 - 1,130,000 1997 GO Bonds $1,145,575 $ - $655,575 $490,000 $490,000 1997 GO Bonds - CAB Long Term Interest 939,399 52,264 532,249 459,414 510,000 2000 GO Valley Comm. Bonds 1,595,000 - 167,000 1,428,000 175,000 2001 GO Refunding Bonds 13,120,000 - 85,000 13,035,000 335,000 2001 GO Bonds 6,000,000 - - 6,000,000 - 2002 GO Bonds 3,175,000 - 155,000 3,020,000 160,000 2006 GO Bonds 17,980,000 - 520,000 17,460,000 540,000 Total Limited GO Bonds $43,954,974 $52,264 $2,114,824 $41,892,414 $2,210,000 Unlimited General Obligation Debt 643,050 - 42,870 600,180 42,870 1993 GO Refunding Bonds- Senior Housing 985,000 - 480,000 505,000 505,000 Total General Obligation Bonds $44,939,974 $52,264 $2,594,824 $42,397,414 $2,715,000 Installment Contracts: 76,074 - 20,919 55,155 21,995 Certificated of participation 16,976 - 16,976 - - Employee Leave Benefits (Comp. Absences) 4,440,424 3,210,894 2,531,042 5,120,276 2,918,558 Other post -employment benefits payable - 2,024,068 1,266,192 757,876 - Total General Obligation Debt $49,397,374 $5,287,226 $6,409,034 $48,275,566 $5,633,558 BUSINESS -TYPE DEBT Revenue Bonds: 1998 Water/Sewer Refunding 3,485,000 - 570,000 2,915,000 595,000 1999 Golf System Refunding 2,805,000 - 295,000 2,510,000 310,000 2002 Water/Sewer Bond 3,230,000 - 110,000 3,120,000 455,000 2003 Water/Sewer Refunding 3,800,000 - 1,130,000 2,670,000 825,000 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 - 8,320,000 15,000 2008 Water/Sewer Bond (a) - 9,975,000 9,975,000 - 2008 Water/Sewer Bond (b) - 2,035,000 2,035,000 - Total Revenue Bonds $33,405,000 $12,010,000 $2,105,000 $43,310,000 $2,200,000 Public Works Trust Fund Loans: Sierra Heights Sewer Improvements 128,210 - 25,642 102,568 25,642 Central Renton Sewer Replacement 628,934 - 87,483 541,451 87,483 East Renton Interceptor 807,420 - 134,570 672,850 134,570 Dayton Avenue NE 35,721 - 5,103 30,618 5,103 NE 27th/Aberdeen Drainage Improvement 340,720 - 42,590 298,130 42,590 East Kennydale Interceptor 1,051,695 - 116,855 934,840 116,855 Honeycreek Interceptor 871,848 - 96,872 774,976 96,872 Corrosion Control Treatment Facilities 493,570 - 49,357 444,213 49,357 Maplewood Water Improvement 424,214 - 30,301 393,913 30,301 Const. CT Pipeline for Wells 643,050 - 42,870 600,180 42,870 Maplewood Water Improvements 4,377,500 257,500 257,500 4,377,500 272,647 Total Public Work Trust Fund Loan 9,802,882 257,500 889,143 9,171,239 904,290 Golf Course Cart Operating Lease 76,074 - 20,919 55,155 21,995 Employee Leave Benefits (Comp. Absences) 715,249 235,514 334,446 616,317 151,334 Total Business -Type Debt $43,999,205 $12,503,014 $3,349,508 $53,152,711 $3,277,619 GRAND TOTALS $93,396,578 $17,790,240 $9,758,542 $101,428,277 $8,911,177 The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-57 2008 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 will mature in the year 2009 with an accreted value of $1,000,000. The deep -discount debt is reported in the Government -wide financial statements in the amount of $490,000, net of the remaining unamortized discount. SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMMITMENT As of December 31, 2008, 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 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. For bonds that have reached their installment computation dates (bonds outstanding for five years initially and every five years thereafter until the last of the bond issue matures) the City paid an arbitrage rebate in the amount of $9,594 on the City's 2003 Water and Sewer Revenue Refunding Bonds. No additional rebate was found due for other revenue or general obligation bonds for 2008. NEWLY ISSUED DEBT The Water and Sewer Revenue Bonds (A and B) were issued January 4, 2008 in the amount of $9,975,000 and $2,035,000, respectively. The average interest rate is 4.17%. 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 waterworks utility. The Series A (tax exempt) bonds are payable semiannually with interest -only payments until December 1, 2016 when annual principal payments will also be required. The final payment will be December 1, 2027. The Series B (taxable) bonds are payable semi-annually with interest -only payments until December 1, 2013 when annual principal payment will also be required. The final payment will be December 1, 2016. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-58 2008 Comprehensive Annual Financial Report City of Renton, Washington ANNUAL DEBT SERVICE REQUIREMENTS The annual debt service requirements to maturity, including principal and interest, for long-term debt as of December 31, 2008, are as follows: AMOUNT AVAILABLE FOR DEBT SERVICE Fund balances that have been reserved for debt repayment are $1,270,936 in the debt service funds. NOTE 15 - DEFERRED CHARGES IN PROPRIETARY FUNDS As of December 31, 2008, the total amount of deferred charges and other assets reported in the proprietary funds is $788,108. The Waterworks Utility Fund had deferred charges and other assets in the amount of $756,945 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 $31,163 for debt issuance costs related to the 1999 Refunding Revenue Bond. This amount will be fully amortized by 2016. NOTE 16. 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 2008. NOTE 17. JOINT VENTURES 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 one joint venture. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-59 Governmental Activities Business -Type Activities Year Principal Interest Principal Interest 2009 $2,205,000 $2,549,448 $3,141,433 $1,963,233 2010 2,269,000 1,975,553 3,207,417 1,869,186 2011 2,353,000 1,883,688 3,284,324 1,770,243 2012 2,467,000 1,786,176 3,374,290 1,657,422 2013 2,580,000 1,660,989 2,863,648 1,547,100 2014-2018 13,579,000 6,232,638 12,642,018 6,354,836 2019-2023 10,415,000 2,896,971 12,850,618 4,074,204 2024-2028 6,070,000 943,238 11,172,647 1,312,281 Subtotal $ 41,938,000 $ 19,928,699 $ 52,536,394 $ 20,548,504 CAB Interest 459,414 - - - Totals $ 42,397,414 $ 19,928,699 $ 52,536,394 $ 20,548,504 AMOUNT AVAILABLE FOR DEBT SERVICE Fund balances that have been reserved for debt repayment are $1,270,936 in the debt service funds. NOTE 15 - DEFERRED CHARGES IN PROPRIETARY FUNDS As of December 31, 2008, the total amount of deferred charges and other assets reported in the proprietary funds is $788,108. The Waterworks Utility Fund had deferred charges and other assets in the amount of $756,945 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 $31,163 for debt issuance costs related to the 1999 Refunding Revenue Bond. This amount will be fully amortized by 2016. NOTE 16. 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 2008. NOTE 17. JOINT VENTURES 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 one joint venture. The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-59 2008 Comprehensive Annual Financial Report City of Renton, Washington VALLEY COMMUNICATIONS CENTER The "Valley Communications Center" 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, 2008, on Valley Comm: Valley Comm Renton Interest Assets $25,107,535 21.92%* Liabilities 744,100 TOTAL Equity $24,363,434 $4,454,176 *After removing $4,042,221 in assets not subject to the equity interest calculations. Completed Financial Statements for Valley Comm can be obtained from the Valley Communications Center, 23807 — 981h Avenue South, Kent, WA 98031. NOTE 18. SUBSEQUENT EVENTS On April 7, 2008 the City of Renton passed Ordinance 3938 stating the intend of the City of Renton to build a Facilities Maintenance Shop with General Obligation Bonds issued in 2008 to a maximum of $12.5 million. The City postponed the project and did not issue bonds for this purpose. The City of Renton established a public corporation, the South Correctional Entity Facility Public Development Authority (SCORE) on February 25, 2009. The Authority is issuing bonds to pay a portion of the costs of acquiring, constructing, and equipping a correctional facility to be located in Des Moines. Payment for the bonds, estimated to be $100 million, would be secured by the full faith and credit of "member" cities under interlocal agreements with the cities of Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac, and Tukwila. On May 11, 2009 Fitch Rating Service "Fitch" downgraded the insurer's financial strength rating on FSA to "AA-" from "AAA". FSA's rating outlook is negative. The City of Renton, Washington's underlying rating is "AA-". The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-60 2008 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - GENERAL FUND For the Year Ended December 31, 2008 Required Supplemental Information, 5-1 ACTUAL BUDGET TO GAAP BUDGETED AMOUNTS BUDGETARY DIFFERENCES ORIGINAL FINAL BASIS OVER (UNDER) REVENUES Taxes $ 70,602,536 $ 70,602,536 $ 66,844,997 $ (3,757,539) Licenses and permits 4,005,050 4,005,050 2,751,420 (1,253,630) Intergovernmental revenues 4,614,140 8,555,562 8,773,933 218,371 Charges for services 4,885,250 4,956,932 3,976,920 (980,012) Fines and forfeits 1,585,000 1,585,000 2,002,854 417,854 Interfund revenues 3,065,778 3,065,778 3,072,526 6,748 Contributions 98,000 164,065 - (164,065) Interest 1,026,800 1,026,800 587,590 (439,210) Miscellaneous revenues 163,700 163,700 64,359 (99,341) TOTAL REVENUES $ 90,046,254 $ 94,125,423 $ 88,074,599 $ (6,050,824) EXPENDITURES Current: General government $ 15,112,327 $ 15,456,188 $ 14,387,478 $ (1,068,710) Judicial 1,804,091 1,804,091 1,761,665 (42,426) Security of persons and property 42,164,497 46,529,020 45,530,208 (998,812) Physical environment 3,578,057 3,777,678 3,123,883 (653,795) Transportation 6,761,824 6,857,404 6,332,006 (525,398) Economic environment 7,068,014 7,178,308 6,232,669 (945,639) Mental & physical health 10,600 10,600 16,459 5,859 Culture & recreation 11,899,559 12,025,076 11,119,073 (906,003) Capital outlay 1,973,091 2,187,644 2,017,677 (169,967) TOTAL EXPENDITURES $ 90,372,060 $ 95,826,009 $ 90,521,118 $ (5,304,891) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ (325,806) $ (1,700,586) $ (2,446,519) $ (745,933) OTHER FINANCING SOURCES (USES) Transfer in $ - $ 81,364 $ - $ (81,364) Transfer (out) (450,723) (734,326) (519,503) 214,823 Sale of capital assets 735 735 TOTAL OTHER FINANCE SOURCES (USES) $ (450,723) $ (652,962) $ (518,768) $ 134,194 NET CHANGE IN FUND BALANCE $ (776,529) $ (2,353,548) $ (2,965,287) $ (611,739) FUND BALANCE JANUARY 1 $ 16,471,966 $ 16,482,384 $ 16,482,384 $ FUND BALANCE DECEMBER 31 $ 15,695,437 $ 14,128,836 $ 13,517,097 $ (611,739) Required Supplemental Information, 5-1 2008 Comprehensive Annual Financial Report ACTUARIAL VALUATION OF FIREFIGHTERS' PENSION FUND EMPLOYER CONTRIBUTIONS December 31, 2008 City of Renton, Washington * 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. ** The ARC is documented as 0 for negative amounts prior to 2004. Required Supplemental Information, 5-2 ANNUAL FIRE TOTAL REQUIRED PERCENTAGE EMPLOYER INSURANCE EMPLOYER CONTRIBUTION OF ARC FISCAL YEAR ENDING CONTRIBUTIONS* PREMIUMS CONTRIBUTIONS (ARC)** CONTRIBUTED December 31, 2003 $ - $ 63,088 $ 63,088 $ N/A % December 31, 2004 (7,099) 70,250 63,151 (205,680) N/A December 31, 2005 (14,375) 72,404 58,029 (113,541) N/A December 31, 2006 (18,753) 77,821 59,068 (113,541) N/A December 31, 2007 (25,285) 85,062 59,777 (109,968) N/A December 31, 2008 (19,894) 85,949 66,055 (109,968) 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. ** The ARC is documented as 0 for negative amounts prior to 2004. Required Supplemental Information, 5-2 2008 Comprehensive Annual Financial Report City of Renton, Washington LEOFF 1 RETIREE MEDICAL BENEFITS SCHEDULE OF FUNDING PROGRESS December 31, 2008 Required Supplemental Information, 5-3 ACTUARIAL ACCRUED UAAL AS A ACTUARIAL LIABILITY (AAL)- PERCENTAGE OF ACTUARIAL VALUE OF PROJECTED UNIT UNFUNDED FUNDED COVERED COVERED VALUATION ASSETS CREDIT UAAL RATIO PAYROLL PAYROLL DATE (a) (b) (b -a) (a/b) (C) ((b -a) /c) January 1, 2008 $ $ 32,327,794 $ 32,327,794 $ 0% 842,500 3837% Required Supplemental Information, 5-3 2008 Comprehensive Annual Financial Report This page intentionally left blank. City of Renton, Washington Required Supplemental Information, 5-4 2008 Comprehensive Annual Financial Report City of Renton, Washington Non -Major Governmental Fund 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 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. 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. 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 by contributing 1% of general governmental capital project funding for art projects. CABLE COMMUNICATIONS DEVELOPMENT FUND The Cable Communications Development Fund accounts for funding for promotion and development of cable communications as established by City ordinance. Combining Statements & Schedules, 6-1 2008 Comprehensive Annual Financial Report City of Renton, Washington Debt Service Funds GENERAL GOVERNMENTAL MISCELLANEOUS DEBT Accounts for 1997 limited general obligation bond redemption on a Council -approved bond issue, which provided funding for the purchase of Renton City Hall (2001 GO Refund Bonds) and for 1978 limited general obligation bond redemption on a Council - approved bond issue, which provided partial funding for construction of the Renton Senior Activity Center (1997 GO Refunding Bonds). 1989 UNLIMITED GENERAL OBLIGATION BOND REDEMPTION 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 2008 Comprehensive Annual Financial Report City of Renton, Washington 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. TRANSPORTATION IMPACT MITIGATION FUND Accounts for monies collected from developers to offset impacts created by their developments to City facilities. MUNICIPAL FACILITIES CONSTRUCTION FUND The Municipal Facilities Construction Fund accounts for the acquisition and development of municipal facilities. Resources included general and special revenue taxes and Council - approved general obligation bonds. 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: BEET, sales tax, grants, and GO Bonds that will provide for the design, construction, labor wages and benefits, and equipment required to implement the project. Combining Statements & Schedules, 6-3 2008 Comprehensive Annual Financial Report City of Renton, Washington Non -Major Proprietary Funds Enterprise Funds 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. It 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. All equipment 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 2008 Comprehensive Annual Financial Report COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS December 31, 2008 Page 1 of 6 City of Renton, Washington Combining Statements & Schedules, 6-5 SPECIAL REVENUE FUNDS ARTERIAL LEASED CITY HOTEL/ SPRINGBROOK ASSETS STREET PROPERTIES MOTEL TAX WETLANDS Cash & cash equivalents $ 372,729 $ 1,221,941 $ 250,779 $ 456,502 Receivables (net of allowances): Customer accounts - 122,220 - - Due from other funds - - 36,537 Due from other governmental units 179,847 33,809 - TOTAL ASSETS $ 552,576 $ 1,344,161 $ 321,125 $ 456,502 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ - $ 4,726 $ 32 $ - Taxes payable 45,588 - Retainage payable 1,739 Deposits 32,981 Deferred revenue 15,601 Accrued employee wages and leave payable 4,320 Total liabilities $ - $ 104,955 $ 32 $ - Fund balances Unreserved, designated for: Special revenue fund contingencies 552,576 1,239,206 321,093 456,502 Total fund balances $ 552,576 $ 1,239,206 $ 321,093 $ 456,502 TOTAL LIABILITIES AND FUND BALANCES $ 552,576 $ 1,344,161 $ 321,125 $ 456,502 Combining Statements & Schedules, 6-5 2008 Comprehensive Annual Financial Report COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS December 31, 2008 Page 2 of 6 SPECIAL REVENUE FUNDS City of Renton, Washington Combining Statements & Schedules, 6-6 PATHS & 1% FOR CABLE COMM. TOTAL ASSETS TRAILS ART & DEVELOPMENT SRF Cash & cash equivalents $ 3,243 $ 121,678 $ 113,873 $ 2,540,745 Receivables (net of allowances): Customer accounts - - - 122,220 Due from other funds 36,537 Due from other governmental units - - - 213,656 TOTAL ASSETS $ 3,243 $ 121,678 $ 113,873 $ 2,913,158 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ - $ - $ 1,504 $ 6,262 Taxes payable - 45,588 Retainage payable 1,739 Deposits 32,981 Deferred revenue 15,601 Accrued employee wages and leave payable - 4,320 Total liabilities $ - $ - $ 1,504 $ 106,491 Fund balances Unreserved, designated for: Special revenue funds contingencies 3,243 121,678 112,369 2,806,667 Total fund balances $ 3,243 $ 121,678 $ 112,369 $ 2,806,667 TOTAL LIABILITIES AND FUND BALANCES $ 3,243 $ 121,678 $ 113,873 $ 2,913,158 Combining Statements & Schedules, 6-6 2008 Comprehensive Annual Financial Report ASSETS Cash & cash equivalents Investments Receivables (net of allowances): Taxes Accrued interest & penalty Due from other funds TOTAL ASSETS LIABILITIES AND FUND BALANCES Liabilities 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, 2008 Page 3 of 6 GENERAL 1989UGO BOND TOTAL DEBT REDEMPTION DSF $ 146,493 $ 496,153 $ 642,646 350,000 - 350,000 126,217 13,124 139,341 50,819 572 51,391 - 94,249 94,249 $ 673,529 $ 604,098 $ 1,277,627 - $ 6,691 $ 6,691 $ 6,691 $ 6,691 $ 673,529 $ 597,407 $ 1,270,936 $ 673,529 $ 597,407 $ 1,270,936 $ 673,529 $ 604,098 $ 1,277,627 Combining Statements & Schedules, 6-7 2008 Comprehensive Annual Financial Report COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS December 31, 2008 Page 4 of 6 City of Renton, Washington Combining Statements & Schedules, 6-8 C.D. IMPACT FIRE IMPACT TRANS. IMPACT MUNICIPAL ASSETS MITIGATION MITIGATION MITIGATION FACILITIES CIP Cash & cash equivalents $ 1,425,709 $ 915,771 $ 1,399,103 $ 889,771 Investments 250,000 1,500,000 1,943,852 10,921,805 Receivables (net of allowances): Taxes - - - 126,217 Customer accounts - - 173,102 - Accrued interest & penalty 13,217 107,880 60,890 690,760 Interfund loans receivable - - - 1,000,000 Due from other funds 48,189 Due from other governmental units - - - 320,922 TOTAL ASSETS $ 1,688,926 $ 2,523,651 $ 3,576,947 $ 13,997,664 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ - $ - $ - $ 142,380 Retainage payable 40,004 81,184 Interfund loans payable - - Totalliabilities $ $ 40,004 $ $ 223,564 Fund balances Reserved for: Interfund loans receivable 1,000,000 Unreserved, designated for: Capital projects funds $ 1,688,926 $ 2,483,647 $ 3,576,947 $ 12,774,100 Total fund balances $ 1,688,926 $ 2,483,647 $ 3,576,947 $ 13,774,100 TOTAL LIABILITIES AND FUND BALANCES $ 1,688,926 $ 2,523,651 $ 3,576,947 $ 13,997,664 Combining Statements & Schedules, 6-8 2008 Comprehensive Annual Financial Report COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS December 31, 2008 Page 5 of 6 City of Renton, Washington Combining Statements & Schedules, 6-9 SO LK WA INFRA- TOTAL ASSETS STRUCTURE CPF Cash & cash equivalents $ 522 $ 4,630,876 Investments - 14,615,657 Receivables (net of allowances): - Taxes - 126,217 Customer accounts 1,704,184 1,877,286 Accrued interest & penalty - 872,747 Interfund loans receivable 1,000,000 Due from other funds - 48,189 Due from other governmental units 347,850 668,772 TOTAL ASSETS $ 2,052,556 $ 23,839,744 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 850,198 $ 992,578 Retainage payable - 121,188 Interfund loans payable 1,000,000 1,000,000 Total liabilities $ 1,850,198 $ 2,113,766 Fund balances Reserved for: Interfund loans receivable - 1,000,000 Unreserved, designated for: - Capital projects funds $ 202,358 $ 20,725,978 Total fund balances $ 202,358 $ 21,725,978 TOTAL LIABILITIES AND FUND BALANCES $ 2,052,556 $ 23,839,744 Combining Statements & Schedules, 6-9 2008 Comprehensive Annual Financial Report COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS December 31, 2008 Page 6 of 6 City of Renton, Washington Combining Statements & Schedules, 6-10 TOTAL OTHER TOTAL TOTAL TOTAL GOVERNMENTAL ASSETS SRF DSF CPF FUNDS Cash & cash equivalents $ 2,540,745 $ 642,646 $ 4,630,876 $ 7,814,267 Investments - 350,000 14,615,657 14,965,657 Receivables (net of allowances): Taxes - 139,341 126,217 265,558 Customer accounts 122,220 - 1,877,286 1,999,506 Accrued interest & penalty - 51,391 872,747 924,138 Interfund loans receivable - - 1,000,000 1,000,000 Due from other funds 36,537 94,249 48,189 178,975 Due from other governmental units 213,656 - 668,772 882,428 TOTAL ASSETS $ 2,913,158 $ 1,277,627 $ 23,839,744 $ 28,030,529 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 6,262 $ - $ 992,578 $ 998,840 Taxes payable 45,588 - 45,588 Retainage payable 1,739 121,188 122,927 Interfund loans payable - 1,000,000 1,000,000 Deposits 32,981 - - 32,981 Deferred revenue 15,601 6,691 22,292 Accrued employee wages and leave payable 4,320 - 4,320 Total liabilities $ 106,491 $ 6,691 $ 2,113,766 $ 2,226,948 Fund balances Reserved for: Interfund loans receivable - - 1,000,000 1,000,000 Unreserved, designated for: Special revenue funds contingency 2,806,667 - - 2,806,667 Unreserved reported in: Debt service funds - 1,270,936 - 1,270,936 Capital projects funds - - 20,725,978 20,725,978 $ 2,806,667 $ 1,270,936 $ 21,725,978 $ 25,803,581 TOTAL LIABILITIES AND FUND BALANCES $ 2,913,158 $ 1,277,627 $ 23,839,744 $ 28,030,529 Combining Statements & Schedules, 6-10 2008 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, 2008 Page 1 of 6 REVENUES Taxes Intergovernmental revenues Charges for services Contributions Interest TOTALREVENUES EXPENDITURES Current: General government Economic environment Capital outlay 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 SPECIAL REVENUE FUNDS ARTERIAL LEASED CITY HOTEL/ SPRINGBROOK STREET PROPERTIES MOTEL TAX WETLANDS $ - $ 84,564 $ 252,233 $ 650,721 - - - 1,072,669 - - - 60,000 - 10,528 18,700 7,276 8,502 $ 661,249 $ 1,175,933 $ 319,509 $ 8,502 $ $ 706,662 $ - $ - 346,432 $ $ 706,662 $ 346,432 $ - $ 661,249 $ 469,271 $ (26,923) $ 8,502 $ (585,000) $ (386,000) $ $ (585,000) $ (386,000) $ $ 76,249 $ 83,271 $ (26,923) $ 8,502 $ 476,327 $ 1,155,935 $ 348,016 $ 448,000 $ 552,576 $ 1,239,206 $ 321,093 $ 456,502 Combining Statements & Schedules, 6-11 2008 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, 2008 Page 2 of 6 SPECIAL REVENUE FUNDS PATHS & 1% FOR CABLE COMM. TOTAL TRAILS ART & DEVELOPMENT SRF REVENUES Taxes Intergovernmental revenues Charges for services Contributions Interest TOTALREVENUES EXPENDITURES Current: General government Economic environment Capital outlay TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfer (out) TOTAL OTHER FINANCE SOURCES (USES) $ $ $ $ 70,000 $ 406,797 $ 48,591 $ 190,071 - 650,721 3,183 $ 121,357 $ 63,778 1,072,669 FUND BALANCE DECEMBER 31 $ - 60,000 60 2,300 1,705 49,071 $ 60 $ 2,300 $ 71,705 $ 2,239,258 $ - $ - $ - $ 706,662 - 23,114 369,546 1,979 - 1,979 $ - $ 1,979 $ 23,114 $ 1,078,187 321 $ 48,591 $ 1,161,071 $ 60 $ $ - $ - $ - $ (971,000) $ - $ $ $ (971,000) NET CHANGE IN FUND BALANCE $ 60 $ 321 $ 48,591 $ 190,071 FUND BALANCE JANUARY 1 $ 3,183 $ 121,357 $ 63,778 $ 2,616,596 FUND BALANCE DECEMBER 31 $ 3,243 $ 121,678 $ 112,369 $ 2,806,667 Combining Statements & Schedules, 6-12 2008 Comprehensive Annual Financial Report COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE OTHER GOVERNMENTAL FUNDS For the Year Ended December 31, 2008 Page 3 of 6 City of Renton, Washington NET CHANGE IN FUND BALANCE $ GENERAL 1989 UGO BOND TOTAL FUND BALANCE JANUARY 1 $ DEBT REDEMPTION DSF REVENUES $ 673,529 $ 597,407 $ 1,270,936 Taxes $ 3,805,277 $ 501,576 $ 4,306,853 Interest 52,637 5,756 58,393 TOTAL REVENUES $ 3,857,914 $ 507,332 $ 4,365,246 EXPENDITURES Debt service: Debt service: $ 1,599,551 $ 480,000 $ 2,079,551 Interest payment 2,664,188 43,485 2,707,673 TOTAL EXPENDITURES $ 4,263,739 $ 523,485 $ 4,787,224 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ (405,825) $ (16,153) $ (421,978) OTHER FINANCING SOURCES (USES) Transfer in $ 300,000 $ $ 300,000 TOTAL OTHER FINANCE SOURCES (USES) $ 300,000 $ $ 300,000 NET CHANGE IN FUND BALANCE $ (105,825) $ (16,153) $ (121,978) FUND BALANCE JANUARY 1 $ 779,354 $ 613,560 $ 1,392,914 FUND BALANCE DECEMBER 31 $ 673,529 $ 597,407 $ 1,270,936 Combining Statements & Schedules, 6-13 2008 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, 2008 Page 4 of 6 NET CHANGE IN FUND BALANCE C.D. IMPACT FIRE IMPACT TRANS. IMPACT MUNICIPAL $ (2,746,588) MITIGATION MITIGATION MITIGATION FACILITIES CIP REVENUES $ 16,520,688 FUND BALANCE DECEMBER 31 $ 1,688,926 Taxes $ $ $ $ 824,707 Licenses and permits - Intergovernmental revenues 266,806 Charges for services 273,952 339,623 782,584 - Contributions - - - 75,000 Interest 28,662 99,736 260,618 655,931 Miscellaneous revenues - - - 1,209,000 TOTAL REVENUES $ 302,614 $ 439,359 $ 1443,202 $ 3,031,444 EXPENDITURES Current: Economic environment $ - $ - $ - $ 67,248 Capital outlay 6,596,162 Debt service: Interest payment - TOTAL EXPENDITURES $ - $ $ - $ 6,663,410 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 302,614 $ 439,359 $ 1,043,202 $ (3,631,966) OTHER FINANCING SOURCES (USES) Transfer in $ - $ - $ - $ 885,378 Transfer (out) (111,875) (300,000) (2,223,229) - TOTAL OTHER FINANCE SOURCES (USES) $ (111,875) $ (300,000) $ (2,223,229) $ 885,378 NET CHANGE IN FUND BALANCE $ 190,739 $ 139,359 $ (1,180,027) $ (2,746,588) FUND BALANCE JANUARY 1 $ 1,498,187 $ 2,344,288 $ 4,756,974 $ 16,520,688 FUND BALANCE DECEMBER 31 $ 1,688,926 $ 2,483,647 $ 3,576,947 $ 13,774,100 Combining Statements & Schedules, 6-14 2008 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, 2008 Page 5 of 6 Combining Statements & Schedules, 6-15 SO LK WA INFRA- TOTAL STRUCTURE CPF REVENUES Taxes $ 131,034 $ 955,741 Licenses and permits 268,000 268,000 Intergovernmental revenues 500,000 766,806 Charges for services 700,202 2,096,361 Contributions - 75,000 Interest 34 1,044,981 Miscellaneous revenues - 1,209,000 TOTAL REVENUES $ 1,599,270 $ 6,415,889 EXPENDITURES Current: Economic environment $ 4,218 $ 71,466 Capital outlay 1,912,775 8,508,937 Debt service: - Interest payment 21,574 21,574 TOTAL EXPENDITURES $ 1,938,567 $ 8,601,977 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ (339,297) $ (2,186,088) OTHER FINANCING SOURCES (USES) Transfer in $ $ 885,378 Transfer (out) (2,635,104) TOTAL OTHER FINANCE SOURCES (USES) $ $ (1,749,726) NET CHANGE IN FUND BALANCE $ (339,297) $ (3,935,814) FUND BALANCE JANUARY 1 $ 541,655 $ 25,661,792 FUND BALANCE DECEMBER 31 $ 202,358 $ 21,725,978 Combining Statements & Schedules, 6-15 2008 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, 2008 Page 6 of 6 Combining Statements & Schedules, 6-16 TOTAL OTHER TOTAL TOTAL TOTAL GOVERNMENTAL SRF DSF CPF FUNDS REVENUES Taxes $ 406,797 $ 4,306,853 $ 955,741 $ 5,669,391 Licenses and permits - - 268,000 268,000 Intergovernmental revenues 650,721 766,806 1,417,527 Charges for services 1,072,669 2,096,361 3,169,030 Contributions 60,000 - 75,000 135,000 Interest 49,071 58,393 1,044,981 1,152,445 Miscellaneous revenues - - 1,209,000 1,209,000 TOTAL REVENUES $ 2,239,258 $ 4,365,246 $ 6,415,889 $ 13,020,393 EXPENDITURES Current: General government $ 706,662 $ - $ - $ 706,662 Economic environment 369,546 71,466 441,012 Capital outlay 1,979 - 8,508,937 8,510,916 Debt service: Principal payment - 2,079,551 - 2,079,551 Interestpaymenl - 2,707,673 21,574 2,729,247 TOTAL EXPENDITURES $ 1,078,187 $ 4,787,224 $ 8,601,977 $ 14,467,388 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 1,161,071 $ (421,978) $ (2,186,088) $ (1,446,995) OTHER FINANCING SOURCES (USES) Transfer in $ - $ 300,000 $ 885,378 $ 1,185,378 Transfer (out) (971,000) - (2,635,104) (3,606,104) TOTAL OTHER FINANCE SOURCES (USES) $ (971,000) $ 300,000 $ (1,749,726) $ (2,420,726) NET CHANGE IN FUND BALANCE $ $ (3,935,814) $ (3,867,721) 190,071 $ (121,978) FUND BALANCE JANUARY 1 $ 2,616,596 $ 1,392,914 $ 25,661,792 $ 29,671,302 FUND BALANCE DECEMBER 31 $ 2,806,667 $ 1,270,936 $ 21,725,978 $ 25,803,581 Combining Statements & Schedules, 6-16 2008 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - ARTERIAL STREET FUND For the Year Ended December 31, 2008 Combining Statements & Schedules, 6-17 ACTUAL BUDGET TO GAAP BUDGETED AMOUNTS BUDGETARY DIFFERENCES ORIGINAL FINAL BASIS OVER (UNDER) REVENUES Intergovernmental revenues $ 580,000 $ 580,000 $ 650,721 $ 70,721 Interest 5,000 5,000 10,528 5,528 TOTAL REVENUES $ 585,000 $ 585,000 $ 661,249 $ 76,249 TOTAL EXPENDITURES $ - $ - $ - $ - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 585,000 $ 585,000 $ 661,249 $ 76,249 OTHER FINANCING SOURCES (USES) Transfer (out) (585,000) (585,000) (585,000) - TOTAL OTHER FINANCE SOURCES (USES) $ (585,000) $ (585,000) $ (585,000) $ - NET CHANGE IN FUND BALANCE $ - $ - $ 76,249 $ 76,249 FUND BALANCE JANUARY 1 $ 476,327 $ 476,327 $ 476,327 $ FUND BALANCE DECEMBER 31 $ 476,327 $ 476,327 $ 552,576 $ 76,249 Combining Statements & Schedules, 6-17 2008 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - LEASED CITY PROPERTIES For the Year Ended December 31, 2008 Combining Statements & Schedules, 6-18 ACTUAL BUDGET TO GAAP BUDGETED AMOUNTS BUDGETARY DIFFERENCES ORIGINAL FINAL BASIS OVER (UNDER) REVENUES Taxes $ 84,564 $ 84,564 $ 84,564 $ Charges for services 1,153,139 1,153,139 1,072,669 (80,470) Interest - - 18,700 18,700 TOTAL REVENUES $ 1,237,703 $ 1,237,703 $ 1,175,933 $ (61,770) EXPENDITURES Current: General government $ 760,836 $ 732,080 $ 706,662 $ (25,418) Debt service: Principal payment - 60,000 - (60,000) Interest payment - 3,600 - (3,600) TOTAL EXPENDITURES $ 760,836 $ 795,680 $ 706,662 $ (89,018) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 476,867 $ 442,023 $ 469,271 $ 27,248 OTHER FINANCING SOURCES (USES) Transfer (out) $ (386,000) $ (386,000) $ (386,000) $ - TOTAL OTHER FINANCE SOURCES (USES) $ (386,000) $ (386,000) $ (386,000) $ - NET CHANGE IN FUND BALANCE $ 90,867 $ 56,023 $ 83,271 $ 27,248 FUND BALANCE JANUARY 1 $ 1,155,935 $ 1,155,935 $ 1,155,935 $ FUND BALANCE DECEMBER 31 $ 1,246,802 $ 1,211,958 $ 1,239,206 $ 27,248 Combining Statements & Schedules, 6-18 2008 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, 2008 Combining Statements & Schedules, 6-19 ACTUAL BUDGET TO GAAP BUDGETED AMOUNTS BUDGETARY DIFFERENCES ORIGINAL FINAL BASIS OVER (UNDER) REVENUES Taxes $ 232,000 $ 232,000 $ 252,233 $ 20,233 Contributions 65,000 65,000 60,000 (5,000) Interest 10,000 10,000 7,276 (2,724) TOTAL REVENUES $ 307,000 $ 307,000 $ 319,509 $ 12,509 EXPENDITURES Current: Economic environment $ 267,000 $ 347,000 $ 346,432 $ (568) TOTAL EXPENDITURES $ 267,000 $ 347,000 $ 346,432 $ (568) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 40,000 $ (40,000) $ (26,923) $ 13,077 TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - NET CHANGE IN FUND BALANCE $ 40,000 $ (40,000) $ (26,923) $ 13,077 FUND BALANCE JANUARY 1 $ 348,016 $ 348,016 $ 348,016 $ FUND BALANCE DECEMBER 31 $ 388,016 $ 308,016 $ 321,093 $ 13,077 Combining Statements & Schedules, 6-19 2008 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, 2008 Combining Statements & Schedules, 6-20 ACTUAL BUDGET TO GAAP BUDGETED AMOUNTS BUDGETARY DIFFERENCES ORIGINAL FINAL BASIS OVER (UNDER) REVENUES Interest $ $ $ 60 $ 60 TOTALREVENUES $ $ $ 60 $ 60 TOTAL EXPENDITURES $ $ $ - $ - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ $ $ 60 $ 60 TOTAL OTHER FINANCE SOURCES (USES) $ $ $ - $ - NET CHANGE IN FUND BALANCE $ $ $ 60 $ 60 FUND BALANCE JANUARY 1 $ 3,183 $ 3,183 $ 3,183 $ FUND BALANCE DECEMBER 31 $ 3,183 $ 3,183 $ 3,243 $ 60 Combining Statements & Schedules, 6-20 2008 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - SPRINGBROOK WETLANDS BANK FUND For the Year Ended December 31, 2008 Combining Statements & Schedules, 6-21 ACTUAL BUDGET TO GAAP BUDGETED AMOUNTS BUDGETARY DIFFERENCES ORIGINAL FINAL BASIS OVER (UNDER) REVENUES Interest $ $ $ 8,502 $ 8,502 TOTAL REVENUES $ $ $ 8,502 $ 8,502 TOTAL EXPENDITURES $ $ $ - $ - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ $ $ 8,502 $ 8,502 TOTAL OTHER FINANCE SOURCES (USES) $ $ $ - $ - NET CHANGE IN FUND BALANCE $ $ 8,502 $ 8,502 $ FUND BALANCE JANUARY 1 $ 448,000 $ 448,000 $ 448,000 $ FUND BALANCE DECEMBER 31 $ 448,000 $ 448,000 $ 456,502 $ 8,502 Combining Statements & Schedules, 6-21 2008 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, 2008 Combining Statements & Schedules, 6-22 ACTUAL BUDGET TO GAAP BUDGETED AMOUNTS BUDGETARY DIFFERENCES ORIGINAL FINAL BASIS OVER (UNDER) REVENUES Interest $ $ $ 2,300 $ 2,300 TOTAL REVENUES $ $ $ 2,300 $ 2,300 EXPENDITURES Current: Economic environment $ $ 141,698 $ - $ (141,698) Capital outlay 77,505 - 1,979 1,979 TOTAL EXPENDITURES $ 77,505 $ 141,698 $ 1,979 $ (139,719) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ (77,505) $ (141,698) $ 321 $ 142,019 OTHER FINANCING SOURCES (USES) Transfer in $ 77,505 $ 77,505 $ - $ (77,505) TOTAL OTHER FINANCE SOURCES (USES) $ 77,505 $ 77,505 $ - $ (77,505) NET CHANGE IN FUND BALANCE $ $ (64,193) $ 321 $ 64,514 - FUND BALANCE JANUARY 1 $ 121,357 $ 121,357 $ 121,357 $ FUND BALANCE DECEMBER 31 $ 121,357 $ 57,164 $ 121,678 $ 64,514 Combining Statements & Schedules, 6-22 2008 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, 2008 Combining Statements & Schedules, 6-23 ACTUAL BUDGET TO GAAP BUDGETED AMOUNTS BUDGETARY DIFFERENCES ORIGINAL FINAL BASIS OVER (UNDER) REVENUES Taxes $ 35,000 $ 35,000 $ 70,000 $ 35,000 Interest 2,400 2,400 1,705 (695) Miscellaneous revenues 1,500 1,500 - (1,500) TOTAL REVENUES $ 38,900 $ 38,900 $ 71,705 $ 32,805 EXPENDITURES Current: Economic environment $ 74,778 $ 88,004 $ 23,114 $ (64,890) TOTAL EXPENDITURES $ 74,778 $ 88,004 $ 23,114 $ (64,890) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ (35,878) $ (49,104) $ 48,591 $ 97,695 TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - NET CHANGE IN FUND BALANCE $ (35,878) $ (49,104) $ 48,591 $ 97,695 FUND BALANCE JANUARY 1 $ 63,778 $ 63,778 $ 63,778 $ FUND BALANCE DECEMBER 31 $ 27,900 $ 14,674 $ 112,369 $ 97,695 Combining Statements & Schedules, 6-23 2008 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, 2008 ACTUAL BUDGET TO GAAP BUDGETED AMOUNTS BUDGETARY DIFFERENCES ORIGINAL FINAL BASIS OVER (UNDER) REVENUES Taxes $ 3,868,600 $ 3,868,600 $ 3,805,277 $ (63,323) Interest 100,800 100,800 52,637 (48,163) TOTAL REVENUES $ 3,969,400 $ 3,969,400 $ 3,857,914 $ (111,486) 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) $ 1,600,000 $ 1,600,000 $ 1,599,551 $ (449) 2,669,400 2,669,400 2,664,188 (5,212) $ 4,269,400 $ 4,269,400 $ 4,263,739 $ (5,661) $ (300,000) $ (300,000) $ (405,825) $ (105,825) $ 300,000 $ 300,000 $ 300,000 $ $ 300,000 $ 300,000 $ 300,000 $ NET CHANGE IN FUND BALANCE $ - $ - $ (105,825) $ (105,825) FUND BALANCE JANUARY 1 $ 774,772 $ 779,354 $ 779,354 $ FUND BALANCE DECEMBER 31 $ 774,772 $ 779,354 $ 673,529 $ (105,825) Combining Statements & Schedules, 6-24 2008 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, 2008 Combining Statements & Schedules, 6-25 ACTUAL BUDGET TO GAAP BUDGETED AMOUNTS BUDGETARY DIFFERENCES ORIGINAL FINAL BASIS OVER (UNDER) REVENUES Taxes $ 550,000 $ 550,000 $ 501,576 $ (48,424) Interest 5,000 5,000 5,756 756 TOTAL REVENUES $ 555,000 $ 555,000 $ 507,332 $ (47,668) EXPENDITURES Current: Economic environment $ 488,250 $ - $ - $ Debt service: Principal payment - 480,000 480,000 Interest payment 60,500 68,750 43,485 (25,265) TOTAL EXPENDITURES $ 548,750 $ 548,750 $ 523,485 $ (25,265) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 6,250 $ 6,250 $ (16,153) $ (22,403) TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ NET CHANGE IN FUND BALANCE $ 6,250 $ 6,250 $ (16,153) $ (22,403) FUND BALANCE JANUARY 1 $ 613,560 $ 613,560 $ 613,560 $ FUND BALANCE DECEMBER 31 $ 619,810 $ 619,810 $ 597,407 $ (22,403) Combining Statements & Schedules, 6-25 2008 Comprehensive Annual Financial Report SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - MUNICIPAL FACILITIES CAPITAL IMPROVEMENT FUND For the Year Ended December 31, 2008 City of Renton, Washington EXPENDITURES Current: Economic environment Capital outlay 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 $ 60,000 $ 78,780 $ 67,248 $ (11,532) 13,648,000 18,979,005 6,596,162 (12,382,843) $ 13,708,000 $ 19,057,785 $ 6,663,410 $ (12,394,375) $ (10,508,000) $ (14,023,785) $ (3,631,966) $ 10,391,819 $ 479,723 $ 1,379,418 $ 885,378 $ (494,040) $ 479,723 $ 1,379,418 $ 885,378 $ (494,040) $ (10,028,277) $ (12,644,367) $ (2,746,588) $ 9,897,779 $ 16,520,688 $ 16,520,688 $ 16,520,688 $ - $ 6,492,411 $ 3,876,321 $ 13,774,100 $ 9,897,779 Combining Statements & Schedules, 6-26 ACTUAL BUDGET TO GAAP BUDGETED AMOUNTS BUDGETARY DIFFERENCES ORIGINAL FINAL BASIS OVER (UNDER) REVENUES Taxes $ 2,150,000 $ 2,700,000 $ 824,707 $ (1,875,293) Intergovernmental revenues 300,000 300,000 266,806 (33,194) Contributions - 75,000 75,000 Interest 750,000 750,000 655,931 (94,069) Miscellaneous revenues - 1,209,000 1,209,000 TOTAL REVENUES $ 3,200,000 $ 5,034,000 $ 3,031,444 $ (2,002,556) EXPENDITURES Current: Economic environment Capital outlay 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 $ 60,000 $ 78,780 $ 67,248 $ (11,532) 13,648,000 18,979,005 6,596,162 (12,382,843) $ 13,708,000 $ 19,057,785 $ 6,663,410 $ (12,394,375) $ (10,508,000) $ (14,023,785) $ (3,631,966) $ 10,391,819 $ 479,723 $ 1,379,418 $ 885,378 $ (494,040) $ 479,723 $ 1,379,418 $ 885,378 $ (494,040) $ (10,028,277) $ (12,644,367) $ (2,746,588) $ 9,897,779 $ 16,520,688 $ 16,520,688 $ 16,520,688 $ - $ 6,492,411 $ 3,876,321 $ 13,774,100 $ 9,897,779 Combining Statements & Schedules, 6-26 2008 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, 2008 Combining Statements & Schedules, 6-27 ACTUAL BUDGET TO GAAP BUDGETED AMOUNTS BUDGETARY DIFFERENCES ORIGINAL FINAL BASIS OVER (UNDER) REVENUES Licenses and permits $ 1,800,000 $ 1,800,000 $ 1,956,165 $ 156,165 Intergovernmental revenues 22,827,095 35,730,800 17,358,161 (18,372,639) TOTAL REVENUES $ 24,627,095 $ 37,530,800 $ 19,314,326 $ (18,216,474) EXPENDITURES Capital outlay $ 29,928,671 $ 46,353,715 $ 17,991,860 $ (28,361,855) TOTAL EXPENDITURES $ 29,928,671 $ 46,353,715 $ 17,991,860 $ (28,361,855) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ (5,301,576) $ (8,822,915) $ 1,322,466 $ 10,145,381 OTHER FINANCING SOURCES (USES) Transferin $ 2,608,229 $ 6,035,000 $ 2,868,229 $ (3,166,771) Transfer (out) - (75,000) (75,000) - Sale of capital assets - 19,908 19,908 TOTAL OTHER FINANCE SOURCES (USES) $ 2,608,229 $ 5,960,000 $ 2,813,137 $ (3,146,863) NET CHANGE IN FUND BALANCE $ (2,693,347) $ (2,862,915) $ 4,135,603 $ 6,998,518 FUND BALANCE JANUARY 1 $ 4,355,803 $ 4,355,803 $ 4,355,803 $ FUND BALANCE DECEMBER 31 $ 1,662,456 $ 1,492,888 $ 8,491,406 $ 6,998,518 Combining Statements & Schedules, 6-27 2008 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, 2008 Combining Statements & Schedules, 6-28 ACTUAL BUDGET TO GAAP BUDGETED AMOUNTS BUDGETARY DIFFERENCES ORIGINAL FINAL BASIS OVER (UNDER) REVENUES Taxes $ $ 1,227,210 $ 131,034 $ (1,096,176) Licenses and permits 268,000 268,000 Intergovernmental revenues 847,849 500,000 (347,849) Charges for services 978,152 700,202 (277,950) Interest - 34 34 TOTAL REVENUES $ $ 3,321,211 $ 1,599,270 $ (1,721,941) EXPENDITURES Current: Economic environment $ $ 56,000 $ 4,218 $ (51,782) Capital outlay 2,166,000 1,912,775 (253,225) Debt service: Interest payment 50,000 50,000 21,574 (28,426) TOTAL EXPENDITURES $ 50,000 $ 2,272,000 $ 1,938,567 $ (333,433) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ (50,000) $ 1,049,211 $ (339,297) $ (1,388,508) OTHER FINANCING SOURCES (USES) Transfer (out) $ $ (24,000) $ $ (24,000) TOTAL OTHER FINANCE SOURCES (USES) $ $ (24,000) $ $ 24,000 NET CHANGE IN FUND BALANCE $ (50,000) $ 1,025,211 $ (339,297) $ (1,364,508) FUND BALANCE JANUARY 1 $ 541,655 $ 541,655 $ 541,655 $ FUND BALANCE DECEMBER 31 $ 491,655 $ 1,566,866 $ 202,358 $ (1,364,508) Combining Statements & Schedules, 6-28 2008 Comprehensive Annual Financial Report COMBINING STATEMENT OF NET ASSETS NON -MAJOR ENTERPRISE FUNDS December 31, 2008 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 funds Due from other governmental units Inventory of materials and supplies Total current assets Restricted assets: Investments at fair value Total restricted assets Capital assets (net) Deferred charges and other assets TOTAL ASSETS City of Renton, Washington TOTAL NON -MAJOR AIRPORT GOLF COURSE ENTERPRISE FUNDS $ 545,204 $ 533,497 $ 1,078,701 500,000 308,643 808,643 9,694 30,700 40,394 17,978 52,735 70,713 5,269 - 5,269 50,468 - 50,468 - 146,531 146,531 $ 1,128,613 $ 1,072,106 $ 2,200,719 $ - $ 441,358 $ 441,358 $ - $ 441,358 $ 441,358 $ 10,024,768 $ 9,059,240 $ 19,084,008 - 31,163 31,163 $ 11,153,381 $ 10,603,867 $ 21,757,248 Combining Statements & Schedules, 6-29 2008 Comprehensive Annual Financial Report City of Renton, Washington COMBINING STATEMENT OF NET ASSETS NON -MAJOR ENTERPRISE FUNDS December 31, 2008 Page 2 of 2 Combining Statements & Schedules, 6-30 TOTAL NON -MAJOR AIRPORT GOLF COURSE ENTERPRISE FUNDS LIABILITIES Current liabilities: Accounts payable $ 160,974 $ 63,920 $ 224,894 Accrued employee benefits payable 19,241 30,987 50,228 Accrued taxes payable 24,663 11,387 36,050 Custodial Accounts - 125,149 125,149 Deferred revenue 88,113 - 88,113 Operating leases payable - 31,187 31,187 Total current liabilities $ 292,991 $ 262,630 $ 555,621 Liabilities payable from restricted assets: Revenue bonds payable - current $ - $ 310,000 $ 310,000 Total liabilities payable from restricted assets $ $ 310,000 $ 310,000 Long-term liabilities: Revenue bonds payable $ $ 2,200,000 $ 2,200,000 Unamortized discounts on revenue bonds (212,188) (212,188) Accrued employee wages and benefits payable 26,199 63,675 89,874 Operating leases payable - 23,993 23,993 Total long-term liabilities $ 26,199 $ 2,075,480 $ 2,101,679 TOTAL LIABILITIES $ 319,190 $ 2,648,110 $ 2,967,300 NET ASSETS Investment in capital assets, net of related debt $ 10,024,768 $ 6,737,435 $ 16,762,203 Restricted 441,358 441,358 Unrestricted 809,423 776,964 1,586,387 TOTAL NET ASSETS $ 10,834,191 $ 7,955,757 $ 18,789,948 Combining Statements & Schedules, 6-30 2008 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, 2008 BUSINESS -TYPE ACTIVITIES ENTERPRISE FUNDS TOTAL NON -MAJOR AIRPORT GOLF COURSE ENTERPRISE FUNDS OPERATING REVENUES: Charges for services $ 1,086,254 $ 2,262,841 $ 3,349,095 TOTAL OPERATING REVENUES $ 1,086,254 $ 2,262,841 $ 3,349,095 OPERATING EXPENSES: Operations and maintenance $ 671,011 $ 1,174,615 $ 1,845,626 Benefit payments 135,813 283,871 419,684 Professional services 48,452 - 48,452 Administrative and general 356,166 360,824 716,990 Insurance 52,020 8,500 60,520 Taxes 129 - 129 Depreciation 470,301 337,670 807,971 TOTAL OPERATING EXPENSES $ 1,733,892 $ 2,165,480 $ 3,899,372 OPERATING INCOME (LOSS) $ (647,638) $ 97,361 $ (550,277) NON-OPERATING REVENUES(EXPENSES): Interest revenues $ 24,488 $ 48,028 $ 72,516 Gain (loss) on sale of capital assets - (6,749) (6,749) Other non-operating revenues(expenses; 14,215 1,504 15,719 Interest expense - (134,594) (134,594) Amortization of debt discount and expense - (34,764) (34,764) NON-OPERATING REVENUE NET OF EXPENSES $ 38,703 $ (126,575) $ (87,872) INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS $ (608,935) $ (29,214) $ (638,149) Capital Contributions $ 179,292 $ - $ 179,292 CHANGE IN NET ASSETS $ (429,643) $ (29,214) $ (458,857) NET ASSETS, JANUARY 1 $ 11,263,834 $ 7,984,971 $ 19,248,805 NET ASSETS, DECEMBER 31 $ 10,834,191 $ 7,955,757 $ 18,789,948 Combining Statements & Schedules, 6-31 2008 Comprehensive Annual Financial Report City of Renton, Washington STATEMENT OF CASH FLOWS NON -MAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2008 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 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: Interest on investments NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS CASH & CASH EQUIVALENTS, JANUARY 1 CASH, RESTRICTED CASH ,& CASH EQUIVALENTS, DECEMBER 31 BUSINESS -TYPE ACTIVITIES ENTERPRISE FUNDS TOTAL NON -MAJOR AIRPORT GOLF COURSE ENTERPRISE FUNDS $ 1,134,361 $ 2,287,543 $ 3,421,904 (990,916) (1,604,659) (2,595,575) (131,755) (275,593) (407,348) (38,684) (38,684) 14,215 (139,839) (125,624) $ (12,779) $ 267,452 $ 254,673 $ (228,759) $ (66,235) $ (294,994) (310,000) (310,000) 3,098 3,098 $ (228,759) $ (373,137) $ (601,896) $ 12,955 $ 9,188 $ 22,143 $ 12,955 $ 9,188 $ 22,143 $ (228,583) $ (96,497) $ (325,080) $ 773,787 $ 629,994 $ 1,403,781 $ 545,204 $ 533,497 $ 1,078,701 Combining Statements & Schedules, 6-32 2008 Comprehensive Annual Financial Report STATEMENT OF CASH FLOWS NON -MAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2008 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 City of Renton, Washington BUSINESS -TYPE ACTIVITIES ENTERPRISE FUNDS TOTAL NON -MAJOR AIRPORT GOLF COURSE ENTERPRISE FUNDS $ (647,638) $ 97,361 $ (550,277) $ 470,301 $ 337,670 $ 807,971 14,215 (139,839) (125,624) (7,471) 26,023 18,552 (38,684) - (38,684) (54,463) (54,463) - 14,636 14,636 136,862 (22,226) 114,636 - 12 12 55,578 - 55,578 4,058 8,278 12,336 $ 634,859 $ 170,091 $ 804,950 $ (12,779) $ 267,452 $ 254,673 NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES Depreciation $ 470,301 $ 337,670 $ 807,971 Net amort. bond prem. discount & bond issue costs - 34,764 34,764 Contributions of capital assets 179,292 - 179,292 Combining Statements & Schedules, 6-33 2008 Comprehensive Annual Financial Report COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS December 31, 2008 Page 1 of 2 City of Renton, Washington Combining Statements & Schedules, 6-34 TOTAL EQUIPMENT INSURANCE INTERNAL RENTAL FUND SERVICE FUNDS ASSETS Current assets: Cash & cash equivalents $ 2,311,623 $ 7,154,795 $ 9,466,418 Investments at fair value 1,650,000 9,644,461 11,294,461 Receivables (net of allowances): Customer accounts 3,286 13,403 16,689 Interest - investments 172,474 600,454 772,928 Due from other governmental units 7,377 - 7,377 Prepayments 139,911 457,074 596,985 Total current assets $ 4,284,671 $ 17,870,187 $ 22,154,858 Property, plant, and equipment: Capital assets (net) $ 11,574,644 $ - $ 11,574,644 Total property, plant, and equipment $ 11,574,644 $ $ 11,574,644 TOTAL ASSETS $ 15,859,315 $ 17,870,187 $ 33,729,502 Combining Statements & Schedules, 6-34 2008 Comprehensive Annual Financial Report City of Renton, Washington COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS December 31, 2008 Page 2 of 2 Combining Statements & Schedules, 6-35 TOTAL EQUIPMENT INSURANCE INTERNAL RENTAL FUND SERVICE FUNDS LIABILITIES Current liabilities: Accounts payable $ 145,741 $ 337,088 $ 482,829 Due to other funds - 923 923 Accrued employee benefits payable 32,925 19,946 52,871 Accrued taxes payable (405) - (405) Total current liabilities $ 178,261 $ 357,997—$ 536,218 Long-term liabilities: Accrued employee wages and benefits payable $ 192,682 $ 731,248 $ 923,930 Claims incurred but not reported - 2,926,675 2,926,675 Total long-term liabilities $ 192,682 $ 3,657,923 $ 3,850,605 TOTAL LIABILITIES $ 370,943 $ 4,015,880 $ 4,386,823 NET ASSETS Investment in capital assets, Net of related debt $ 11,574,644 $ - $ 11,574,644 Unrestricted 3,913,728 13,854,307 17,768,035 TOTAL NET ASSETS $ 15,488,372 $ 13,854,307 $ 29,342,679 Combining Statements & Schedules, 6-35 2008 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, 2008 Combining Statements & Schedules, 6-36 TOTAL EQUIPMENT INSURANCE INTERNAL RENTAL FUND SERVICE FUNDS OPERATING REVENUES: Charges for services $ 8,525,692 $ 2,653,273 $ 11,178,965 Other operating revenues - 11,498,439 11,498,439 TOTAL OPERATING REVENUES $ 8,525,692 $ 14,151,712 $ 22,677,404 OPERATING EXPENSES: Operations and maintenance $ 2,790,860 $ 239,649 $ 3,030,509 Benefit payments 1,783,211 10,458,876 12,242,087 Professional services 400,419 509,366 909,785 Administrative and general 1,907,393 137,597 2,044,990 Insurance 251,430 965,716 1,217,146 Depreciation 517,357 - 517,357 TOTAL OPERATING EXPENSES $ 7,650,670 $ 12,311,204 $ 19,961,874 OPERATING INCOME (LOSS) $ 875,022 $ 1,840,508 $ 2,715,530 NON-OPERATING REVENUES (EXPENSES): Intergovernmental revenues $ - $ 19,675 $ 19,675 Interest revenues 182,726 565,535 748,261 Gain (loss) on sale of capital assets 45,045 - 45,045 Other non-operating revenues (expenses) 336,355 577,668 914,023 Interest expense (22,700) - (22,700) NON-OPERATING REVENUE NET OF EXPENSE $ 541,426 $ 1,162,878 $ 1,704,304 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS $ 1,416,448 $ 3,003,386 $ 4,419,834 Transfers in (out) $ 317,000 $ (60,000) $ 257,000 CHANGE IN NET ASSETS $ 1,733,448 $ 2,943,386 $ 4,676,834 NET ASSETS, JANUARY 1 $ 13,754,924 $ 10,910,921 $ 24,665,845 NET ASSETS, DECEMBER 31 $ 15,488,372 $ 13,854,307 $ 29,342,679 Combining Statements & Schedules, 6-36 2008 Comprehensive Annual Financial Report COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31, 2008 Page 1 of 2 City of Renton, Washington Combining Statements & Schedules, 6-37 TOTAL EQUIPMENT INSURANCE INTERNAL RENTAL FUND SERVICE FUNDS CASH FLOWS FROM OPERATING ACTIVITIES: Cash received for services $ 8,524,299 $ 14,169,279 $ 22,693,578 Cash paid to suppliers for goods & services (3,816,789) 677,953 (3,138,836) Cash paid to employees (1,733,400) (10,404,518) (12,137,918) Other operating receipts (1,352,048) (2,338,863) (3,690,911) Other non-operating receipts (232,432) - (232,432) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 1,389,630 $ 2,103,851 $ 3,493,481 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds $ - $ (60,0001$ (60,000) NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES $ $ (60,000) $ (60,000) CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: Acquisition & construction of capital assets $ (4,100,399)1$ $ (4,100,399) NET CASH PROVIDED (USED) BY CAPITAL FINANCING ACTIVITIES $ (4,100,399)1$ $ (4,100,399) CASH FLOWS FROM INVESTING ACTIVITIES: Payments for investments $ 1,853,828 $ 1,586,898 $ 3,440,726 Interest on investments 80,953 232,004 312,957 NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES $ 1,934,781 $ 1,818,902 $ 3,753,683 NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS $ (775,988) $ 3,862,753 $ 3,086,765 CASH & CASH EQUIVALENTS, JANUARY 1 $ 3,087,611 $ 3,292,042 $ 6,379,653 CASH & CASH EQUIVALENTS, DECEMBER 31 $ 2,311,623 $ 7,154,795 $ 9,466,418 Combining Statements & Schedules, 6-37 2008 Comprehensive Annual Financial Report COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31, 2008 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 Depreciation & amortization City of Renton, Washington TOTAL EQUIPMENT INSURANCE INTERNAL RENTAL FUND SERVICE FUNDS $ 875,022 $ 1,840,508 $ 2,715,530 517,357 - 517,357 358,700 597,343 956,043 (1,393) 17,567 16,174 4,953 - 4,953 (11,509) (209,650) (221,159) (410,080) (406,848) (816,928) (4,740) 923 (3,817) 61,320 264,008 325,328 $ 514,608 $ 263,343 $ 777,951 $ 1,389,630 $ 2,103,851 $ 3,493,481 517,357 517,357 Combining Statements & Schedules, 6-38 2008 Comprehensive Annual Financial Report STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND - SPECIAL DEPOSIT For the Year Ended December 31, 2008 Page 1 of 1 City of Renton, Washington Combining Statements & Schedules, 6-39 BEGINNING ENDING BALANCE DEBITS CREDITS BALANCE ASSETS Cash $ 728,049 $ 592,653 480,236 $ 840,466 TOTAL ASSETS $ 728,049 $ 592,653 $ 480,236 $ 840,466 LIABILITIES Vouchers & contacts payable $ 62,166 $ 453,863 423,633 $ 31,936 Deposits payable 665,883 442,518 585,165 808,530 TOTAL LIABILITIES $ 728,049 $ 896,381 $ 1,008,798 $ 840,466 Combining Statements & Schedules, 6-39 2008 Comprehensive Annual Financial Report This page intentionally left blank. City of Renton, Washington Combining Statements & Schedules, 6-40 2007 Comprehensive Annual Financial Report City of Renton, Washington STATISTICAL SECTION December 31, 2008 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 City of Renton, Washington 2008 Comprehensive Annual Financial Report This page intentionally left blank. Statistical Section, 7-2 2008 Comprehensive Annual Financial Report City of Renton, Washington TABLE 1 NET ASSETS BY COMPONENT LAST FIVE FISCAL YEARS (Accrual basis of accounting) FISCAL YEAR 2004 2005 2006 2007 2008 Governmental activities $ 359,173,601 $ 375,125,039 $ 391,480,495 $ 421,232,714 $ Invested in capital assets, net of related debt $ 195,282,055 $ 203,297,293 $ 209,964,556 $ 232,714,563 $ 353,197,782 Restricted 21,460,395 28,578,305 42,748,022 32,648,993 33,294,987 Unrestricted 25,746,196 29,272,573 29,340,290 32,075,613 34,160,010 Total governmental activities net assets $ 242,488,646 $ 261,148,171 $ 282,052,868 $ 297,439,169 $ 420,652,779 Business -type activities $ 359,173,601 $ 375,125,039 $ 391,480,495 $ 421,232,714 $ Invested in capital assets, net of related debt $ 163,891,546 $ 171,827,746 $ 181,515,939 $ 188,518,151 $ 202,255,997 Restricted 3,555,690 3,555,690 25,097,253 3,586,667 4,171,525 Unrestricted 21,612,156 21,541,563 19,357,695 17,973,237 17,430,207 Total business -type activities net assets $ 189,059,392 $ 196,924,999 $ 225,970,887 $ 210,078,055 $ 223,857,729 Primary government Invested in capital assets, net of related debt $ 359,173,601 $ 375,125,039 $ 391,480,495 $ 421,232,714 $ 555,453,779 Restricted 25,016,085 32,133,995 67,845,275 36,235,660 $ 37,466,512 Unrestricted 47,358,352 50,814,136 48,697,985 50,048,850 $ 51,590,217 Total primary government net assets $ 431,548,038 $ 458,073,170 $ 508,023,755 $ 507,517,224 $ 644,510,508 'First Year of Net Assets by Component Source : City of Renton, Finance and IS Department Statistical Section, 7-3 2008 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 Source : City of Renton, Finance & IS Department 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 (expense)/revenue Governmental activities Business -type activities Total primary government net expense TABLE 2 CHANGES IN NET ASSETS LAST FIVE FISCAL YEARS (Accrual basis of accounting) Page 1 of 2 2004 2005 City of Renton, Washington FISCAL YEAR 2006 2007 2008 $ 22,144,567 $ 21,137,856 $ 19,977,086 $ 29,112,970 $ 12,010,422 1,340,655 1,380,816 1,434,134 1,845,031 1,761,665 28,647,443 29,496,791 30,749,762 36,213,120 46,289,454 2,278,445 2,208,340 2,618,832 2,749,417 3,333,471 6,797,356 4,183,880 15,798,138 11,237,287 13,675,581 5,519,929 5,899,796 6,372,118 6,880,687 6,823,426 228,966 300,171 295,072 301,495 325,066 10,303,074 9,744,692 9,695,924 11,036,931 17,025,800 1,627,581 1,710,346 1,772,370 2,594,784 2,663,436 $ 78,888,016 $ 76,062,688 $ 88,713,436 $ 101,971,722 $ 103,908,321 $ 23,347,678 $ 25,884,227 $ 27,220,132 $ 28,657,468 $ 32,738,366 936,305 1,226,810 1,196,363 1,396,054 1,733,894 8,558,441 9,327,525 9,706,016 10,606,560 11,518,047 1,933,113 2,132,077 2,056,874 2,277,454 2,334,838 $ 34,775,537 $ 38,570,639 $ 40,179,385 $ 42,937,536 $ 48,325,145 $ 113,663,553 $ 114,633,327 $ 128,892,821 $ 144,909,258 $ 152,233,466 $ 15,579,366 $ 17,525,244 $ 21,852,465 $ 23,163,645 $ 5,614,638 1,531,773 697,883 831,485 1,169,581 2,420,913 200,149 247,235 517,151 591,586 550,773 837,027 894,750 400,798 999,484 864,581 1,916,862 1,660,698 1,628,154 1,432,215 2,165,538 4,236,596 4,516,899 4,368,399 7,857,186 4,236,983 1,507,387 1,558,458 1,742,071 1,649,960 1,739,055 6,213,791 4,979,601 4,596,836 5,265,737 9,570,931 1,745,718 1,227,503 5,909,870 4,940,471 18,109,124 $ 33,768,669 $ 33,308,271 $ 41,847,229 $ 47,069,865 $ 45,272,536 $ 38,917,114 $ 40,029,830 $ 40,056,079 $ 45,403,349 $ 44,651,684 112,616 196,974 77,688 243,537 264,784 6,583,241 5,101,699 6,317,203 1,761,802 6,888,975 $ 45,612,971 $ 45,328,503 $ 46,450,970 $ 47,408,688 $ 51,805,443 $ 79,381,640 $ 78,636,774 $ 88,298,199 $ 94,478,553 $ 97,077,979 $ (45,119,347) $ (42,754,417) $ (46,866,207) $ (54,901,857) $ (58,635,785) 10,837,434 6,757,864 6,271,585 4,471,152 3,480,298 $ (34,281,913) $ (35,996,553) $ (40,594,622) $ (50,430,705) $ (55,155,487) Statistical Section, 7-4 2008 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 'First Year of Changes in Net Assets Source: City of Renton, Finance and IS Department City of Renton, Washington TABLE 2 CHANGES IN NET ASSETS LAST FIVE FISCAL YEARS (Accrual basis of accounting) Page 2 of 2 FISCAL YEAR 2004 2005 2006 2007 2008 $ 19,578,390 $ 21,523,818 $ 23,600,131 $ 23,106,578 $ 29,381,036 18,281,949 18,910,823 20,869,595 22,749,831 23,190,076 9,957,129 10,643,068 11,219,303 11,962,879 14,945,173 6,751,264 6,938,265 7,718,945 8,236,876 4,362,945 6,048 49 3,799 33,949 6,477 1,291,669 1,449,001 3,251,975 3,465,517 2,419,260 4,346,619 1,958,217 689,243 1,218,889 2,104,133 (10,304) (9,300) (68,446) - 110,000 $ 60,202,764 $ 61,413,941 $ 67,284,545 $ 70,774,519 $ 76,519,100 $ 270,605 $ 458,797 $ 881,486 $ 1,041,576 $ 1,120,342 119,455 639,646 282,808 135,986 85,493 10,304 9,300 68,446 - (110,000) $ 400,364 $ 1,107,743 $ 1,232,740 $ 1,177,562 $ 1,095,835 $ 60,603,128 $ 62,521,684 $ 68,517,285 $ 71,952,081 $ 77,614,935 $ 15,083,417 $ 18,659,524 $ 20,418,338 $ 15,872,662 $ 17,883,315 11,237,798 7,865,607 7,504,325 5,648,714 4,576,133 $ 26,321,215 $ 26,525,131 $ 27,922,663 $ 21,521,376 $ 22,459,448 Statistical Section, 7-5 2008 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 TABLE 3 FUND BALANCE OF GOVERNMENT FUNDS LAST TEN FISCAL YEARS (Accrual basis of accounting) Page 1 of 2 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 City of Renton, Washington All other governmental funds Reserved $ - FISCAL YEAR $ 920,000 $ 1,260,000 $ 1999 2000 2001 2002 2003 Reserved $ 83,000 $ 311,673 $ 318,053 $ 83,000 $ 83,000 Unreserved 5,381,222 8,025,332 6,428,315 3,920,136 6,758,364 Total general fund $ 5,464,222 $ 8,337,005 $ 6,746,368 $ 4,003,136 $ 6,841,364 All other governmental funds Reserved $ - $ - $ 920,000 $ 1,260,000 $ 880,000 Unreserved, reported in: Special revenue funds 2,890,947 3,898,265 4,938,021 3,361,529 3,985,917 Debt service funds 2,987,015 2,653,495 2,546,129 2,030,335 1,916,243 Capital project funds 21,682,591 23,570,741 29,133,681 33,742,638 22,628,512 Total all other governmental funds $ 27,560,553 $ 30,122,501 $ 37,537,831 $ 40,394,502 $ 29,410,672 Source : City of Renton, Finance and IS Department Statistical Section, 7-6 2008 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 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 All other governmental funds Reserved $ 500,000 $ 240,000 FISCAL YEAR $ 975,000 $ 1,000,000 Unreserved, reported in: 2004 2005 2006 2007 2008 General fund 3,238,246 2,929,692 4,243,189 2,616,596 2,806,667 Reserved $ 108,742 $ 8,000 $ 8,000 $ 8,000 $ 8,000 Unreserved 8,603,003 9,189,871 10,737,097 16,474,384 13,509,097 Total general fund $ 8,711,745 $ 9,197,871 $ 10,745,097 $ 16,482,384 $ 13,517,097 All other governmental funds Reserved $ 500,000 $ 240,000 $ 63,900 $ 975,000 $ 1,000,000 Unreserved, reported in: Special revenue funds 3,238,246 2,929,692 4,243,189 2,616,596 2,806,667 Debt service funds 1,486,894 2,752,445 3,068,587 1,392,915 1,270,936 Capital project funds 26,202,437 27,890,457 42,152,437 29,057,397 29,217,384 Total all other governmental funds $ 31,427,577 $ 33,812,594 $ 49,528,113 $ 34,041,908 $ 34,294,987 Statistical Section, 7-7 2008 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 REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines Interfund revenues Special assessments Contributions Interest Miscellaneous Total revenues EXPENDITURES General government Security of persons and property Physical environment Transportation Economic and physical development Mental and physical health Source : City of Renton, Finance & IS DepE Capital outlay Debt service Principal Interest Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Other financing sources (uses) Proceeds of long-term debt Interfund loan proceeds Interfund loan repayments Funds remitted to bond trustee Capital leases Sale of capital assets Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures FISCAL YEAR 1999 2000 2001 2002 2003 $ 44,397,793 $ 47,827,013 $ 50,218,530 $ 49,901,849 $ 53,722,322 3,780,303 4,562,892 4,065,518 4,229,501 4,226,883 5,637,817 6,793,084 6,129,103 6,212,359 4,533,544 7,157,860 7,805,409 7,301,538 7,777,778 6,016,704 831,327 937,689 993,093 1,043,199 1,055,564 - - - - 3,482,110 689,931 352,648 333,056 312,908 295,673 91,383 64,092 191,877 118,103 255,102 2,129,455 2,307,978 2,583,931 1,073,538 1,081,420 682,625 727,465 1,231,574 1,198,846 40,314 $ 65,398,494 $ 71,378,270 $ 73,048,220 $ 71,868,081 $ 74,709,636 $ 10,058,875 $ 10,858,538 $ 11,193,462 $ 12,523,577 $ 13,283,955 21,300,403 22,889,748 23,569,864 24,924,380 26,029,354 1,892,541 1,769,642 1,878,956 1,898,665 2,015,562 10,706,833 10,330,362 13,885,329 10,622,373 4,461,387 3,814,967 4,337,239 4,484,526 4,479,582 4,613,587 8,486 8,599 6,756 11,445 10,368 6,166,358 6,606,662 7,263,056 7,382,069 7,585,936 11,002,950 7,450,837 5,359,801 10,532,479 21,089,534 2,707,994 2,481,026 2,086,447 1,849,269 1,417,042 1,345,588 1,205,281 882,748 1,382,717 1,833,102 $ 69,004,995 $ 67,937,934 $ 70,610,945 $ 75,606,556 $ 82,339,827 $ (3,606,501) $ 3,440,336 $ 2,437,275 $ (3,738,475) $ (7,630,191) $ 4,670,101 $ 3,694,498 $ 6,850,944 $ 9,441,451 $ 3,511,700 (4,587,778) (3,662,809) (8,873,294) (10,009,962) (3,551,700) 38,990 - 6,023,484 3,879,038 448,000 823,000 363,800 860,000 (448,000) (823,000) (363,800) (860,000) 563,283 1,403,688 61,685 104,825 171,249 $ 684,596 $ 1,435,377 $ 4,062,819 $ 3,415,352 $ 131,249 $ (2,921,905) $ 4,875,713 $ 6,500,094 $ (323,123) $ (7,498,942) Source : City of Renton, Finance and IS Department 6.99% 6.09% 4.55% 4.97% 5.31% Statistical Section, 7-8 2008 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 REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines Interfund revenues Special assessments Contributions Interest Miscellaneous Total revenues EXPENDITURES General government Judicial Security of persons and property Physical environment Transportation Economic and physical development Mental and physical health Culture and recreation Capital outlay Debt service Principal Interest Total expenditures FISCAL YEAR 2004 2005 2006 2007 2008 $ 55,344,506 $58,794,081 $64,005,567 $ 66,698,876 $ 72,514,388 4,329,086 4,686,608 4,962,507 5,828,230 4,975,585 7,570,570 5,687,169 9,769,225 9,791,830 27,549,621 6,593,153 5,563,289 6,543,289 10,048,879 7,145,950 1,008,984 731,286 906,685 1,150,079 2,002,854 3,638,574 3,796,042 2,843,147 3,352,411 3,072,526 20,852 23,340 511,932 51,723 - 249,938 317,600 214,387 353,582 135,000 1,059,886 1,060,353 2,570,682 2,486,889 1,740,035 122,799 569,881 223,908 86,322 1,273,359 $ 79,938,348 $ 81,229,649 $ 92,551,329 $ 99,848,821 $ 120,409,318 $ 13,660,095 $ 14,382,634 $ 13,972,592 $ 14,597,355 $ 15,094,140 1,761,665 27,462,613 29,031,626 31,157,303 35,583,500 45,530,208 2,201,777 2,190,228 2,609,452 2,764,563 3,123,883 4,615,345 4,711,924 5,097,449 6,403,358 6,332,006 4,947,080 5,123,024 5,519,219 5,896,589 6,673,681 11,723 12,700 9,231 13,818 16,459 8,563,967 8,876,250 9,933,854 10,830,224 11,119,073 13,246,669 11,438,104 21,117,525 29,320,023 28,520,453 1,477,579 1,375,738 1,503,350 1,565,904 2,079,551 1,763,893 1,713,525 2,129,656 2,646,623 2,729,247 $ 77,950,741 $ 78,855,753 $ 93,049,631 $ 109,621,957 $ 122,980,366 Excess of revenues over(under)expenditures $ 1,987,607 $ 2,373,896 $ (498,302) $ (9,773,136) $ (2,571,048) OTHER FINANCING SOURCES (USES) Transfers in $ 6,563,978 $ 5,476,360 $ 2,962,895 $ 5,782,988 $ 4,053,607 Transfers out (7,764,278) (5,443,660) (3,705,341) (5,782,988) (4,200,607) Other financing sources (uses) Proceeds of long-term debt - 18,490,029 Interfund loan proceeds - Interfund loan repayments - Funds remitted to bond trustee - Capital leases - - Sale of capital assets 117,328 464,547 13,464 24,218 20,643 Total other financing sources (uses) $ (1,082,972) $ 497,247 $ 17,761,047 $ 24,218 $ (126,357) Net change in fund balances $ 904,635 $ 2,871,143 $ 17,262,745 $ (9,748,918) $ (2,697,405) Debt service as a percentage of noncapital expenditures 5.01% 4.58% 5.05% 5.25% 5.09% Statistical Section, 7-9 2008 Comprehensive Annual Financial Report $80 $70 $60 w $50 c g $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 1999-2008 City of Renton, Washington ■ Delinquent Tax O Excise Tax MAdmission/Utility Tax OSales Tax OTimber Tax ■Property Tax Source: City of Renton, Finance and IS Department Statistical Section, 7-10 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 PENALTY/ ADMISSION / INTEREST FISCAL PROPERTY TIMBER SALES UTILITY EXCISE DELINQUENT YEAR TAX TAX TAX TAX TAX TAX TOTAL 1999 $ 15,659,424 N/A $ 15,282,981 $ 8,289,865 $ 4,831,792 $ 1,217 $ 44,065,280 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 - 23,190,076 14,945,173 4,362,945 6,477 71,885,707 Source: City of Renton, Finance and IS Department Statistical Section, 7-10 2008 Comprehensive Annual Financial Report TABLE 6 PRINCIPAL PROPERTY TAX PAYERS December 31, 2008 2008 % OF TOTAL IAXABLE' TAXABLE ASSESSED ASSESSED TAXPAYER 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 (formerly HSC Real Estate Inc.) 0.33% BRE Properties 40,500,000 ECI Two WTC LLC (WTCTPI LLC) 37,433,000 University Street Properties 100.00% Renton Building 1-7 6 US West Renton Village Association Bay Apartment Communities 0.39% Rosche One Int 9 All Others 11,768,638,214 Total Assessed Valuation $ 13,165,193,785 Source: 'King County Department of Assessments City of Renton, Washington 0 % OF TOTAL TAXABLE TAXABLE ASSESSED ASSESSED VALUE RANK VALUE 1 6.40% $ 761,498,607 1 17.88% 2 0.85% 99,854,551 2 2.34% 3 0.75% 87,316,949 3 2.05% 4 0.46% 0.33% 89.39% 3,124,863,864 5 0.42% 100.00% 6 0.41% 7 0.39% 15,858,400 9 0.37% 8 0.34% 9 0.31% 10 0.28% 45,485,400 4 1.07% 43,782,400 5 1.03% 30,407,479 6 0.71% 17,781,100 7 0.42% 17,500,000 8 0.41% 14,152,000 10 0.33% 89.39% 3,124,863,864 73.38% 100.00% $ 4,258,500,750 100.00% Statistical Section, 7-11 2008 Comprehensive Annual Financial Report 12,000 10,000 0 8,000 m 3 rs > 6,000 d N H 4,000 2,000 TABLE 7 ASSESSED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Page 1 of 2 Total Taxable Assessed Value 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Year City of Renton, Washington FISCAL YEAR REAL PROPERTY' PERSONAL PROPERTY ENDED RESIDENTIAL COMMERCIAL DECEMBER31 PROPERTY PROPERTY OTHER 1999 $ 3,543,075,457 $ N/A $ 715,425,293 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 '2000 is the first year when breakdown is available. Source is from TaxTools 4.1 Tax Database 2A Source is from King County Department of Assessments 3The tax exempt real property value is not available for the last ten years Statistical Section, 7-12 2008 Comprehensive Annual Financial Report 4.000 3.500 3.000 2.500 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 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Year FISCAL TOTAL YEAR PERSONAL PROPERTY TOTAL DIRECT ENDED TAX EXEMPT ASSESSED TAX DECEMBER31 REAL PROPERTY 3 VALUE RATE 1999 N/A $ 4,258,500,750 3.747 2000 N/A 6,041,877,559 3.684 2001 N/A 5,062,663,512 3.375 2002 N/A 5,593,880,488 3.354 2003 N/A 5,983,854,306 3.277 2004 N/A 6,372,653,882 3.327 2005 N/A 6,697,771,907 3.227 2006 N/A 7,786,802,282 3.116 2007 N/A 8,809,738,115 2.884 2008 N/A 10,112,555,244 2.624 Statistical Section, 7-13 2008 Comprehensive Annual Financial Report 4.00000 3.50000 3.00000 2.50000 2.00000 1.50000 1.00000 0.50000 TABLE 8 PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Page 1 of 2 Direct Property Tax Rates �& Opp ti ti ti ti ti ti ti ti Year City of Renton, Washington 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 Operating Service City Operating Service County Year Millage Millage Millage Millage Millage Millage 1999 3.42726 0.31981 3.74707 1.51957 0.25428 1.77385 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 Source: King County Codes and Levies . Special Districts include Emergency Medical Services, Port and Hospital Districts Statistical Section, 7-14 2008 Comprehensive Annual Financial Report 7.00000 6.00000 5.00000 4.00000 3.00000 2.00000 1.00000 TABLE 8 PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Page 2 of 2 Overlapping Property Tax Rates ti ti ti ti ti � ti � ti Year City of Renton, Washington Statistical Section, 7-15 OVERLAPPING RATES SCHOOL DISTRICT Total Debt Total Total Direct & Fiscal Special Operating Service School Overlapping Overlapping Year Districts Millage Millage Millage Rates Rates 1999 0.68252 1.87903 1.90387 3.78290 6.23927 9.98634 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 Statistical Section, 7-15 2008 Comprehensive Annual Financial Report $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 1 of 2 Levies vs Collections 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 FISCAL YEAR TOTAL TAX COLLECTED WITHIN THE 1 ENDED LEVY FOR FISCAL YEAR OF THE LEVY DECEMBER 31 FISCAL YEAR AMOUNT % OF LEVY 1999 $ 15,850,628 $ 15,595,427 98.4% 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% Sources: 'Annual Tax Receivable Summary 2007 Annual Property Tax Reports from King County Statistical Section, 7-16 2008 Comprehensive Annual Financial Report $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 TABLE 9 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Page 2 of 2 Property Tax Collections —0 Collections within fiscal yr + Collections in subsequent years 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 FISCAL YEAR COLLECTIONS ` ENDED IN SUBSEQUENT TOTAL COLLECTIONS TO DATE DECEMBER 31 YEARS AMOUNT % OF LEVY 1999 $ 254,790 $ 15,850,217 100.0% 2000 291,580 16,629,370 100.0% 2001 282,509 16,960,391 100.0% 2002 281,900 18,567, 808 99.9% 2003 332,060 19,481,318 100.0% 2004 234,434 20,418,671 99.8% 2005 240,042 21,598,731 99.7% 2006 367,051 22,706,349 99.6% 2007 362,339 23,947,482 99.6% 2008 26,722,301 98.3% City of Renton, Washington Statistical Section, 7-17 2008 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 $0 TABLE 10 SALES TAX COLLECTIONS BY SECTOR LAST TEN FISCAL YEARS Page 1 of 2 Sales Tax Collections by Sector 1999-2003 1999 2000 2001 2002 2003 City of Renton, Washington ■ Retail ■Construction OManufacturing OTransportation ■Wholesale ■Automotive ■Services O Miscellaneous Total Sales Tax 114.129.001 $15.264.188 $15.343.432 $15.050.835 $16.007.404 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 FISCAL YEAR 1999 2000 2001 2002 2003 FUNCTION Furniture $1,245,207 $1,564,002 $1,920,734 $1,623,906 $1,758,082 Electronics and Appliances General Merchandise 560,413 581,268 643,592 673,164 788,699 Misc Retail Trade 586,594 713,017 704,420 681,148 763,596 Others 1,495,038 1,641,879 1,608,082 1,622,166 1,667,483 Subtotal Retail $3.887.252 $4,500,166 $4,876,828 $4,600.384 $4,977,860 OTHER SECTORS Construction $1,545,886 $1,671,621 $2,060,061 $1,899,005 $2,122,560 Manufacturing 411,607 348,439 426,965 547,333 754,501 Transportation 614,603 768,421 648,177 621,314 563,863 Wholesale 1,692,718 1,643,207 1,535,709 1,451,387 1,442,263 Automotive 3,446,262 3,775,582 3,307,794 3,549,973 3,625,878 Services 2,063,272 2,128,373 1,913,630 1,835,039 1,953,254 Miscellaneous 467,401 428,379 574,268 546,400 567,225 Subtotal - Other Sectors $10.241.749 $10,764,022 $10,466,604 $10,450,451 $11,029,544 Total Sales Tax 114.129.001 $15.264.188 $15.343.432 $15.050.835 $16.007.404 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 2008 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 $0 FUNCTION TABLE 10 SALES TAX COLLECTIONS BY SECTOR LAST TEN FISCAL YEARS Page 2 of 2 Sales Tax Collections by Sector 2004-2008 2004 2005 2006 20071 2008 City of Renton, Washington ORetail ■Construction OManufacturing OTransportation ■Wholesale OAutomotive •Services OMiscellaneous FISCAL YEAR 2004 2005 2006 2007' 2008 RETAIL TRADE SECTOR Furniture $2,205,114 $1,203,942 $1,276,644 $1,245,901 $1,199,045 Electronics and Appliances 1,065,416 1,130,621 1,143,188 1,137,586 General Merchandise 1,013,876 1,073,144 1,100,217 1,169,225 1,462,858 Misc Retail Trade 862,919 848,834 928,083 658,429 756,662 Others 1,651,782 2,227,721 2,464,896 1,378,094 1,574,482 Subtotal Retail $5.733.691 $6,419,057 $6.900,461 $5,594,837 $6.130.633 OTHER SECTORS Construction $2,641,907 $2,495,684 $2,688,902 $3,898,202 $4,725,533 Manufacturing 556,555 569,269 797,166 983,110 1,050,789 Transportation 628,918 494,866 567,401 Wholesale 1,416,559 1,025,132 1,016,468 1,083,059 1,131,445 Automotive 3,538,502 3,946,163 4,303,221 4,176,747 3,575,928 Services 1,677,315 1,736,569 2,039,090 4,103,240 3,939,201 Miscellaneous 460,372 421,715 378,233 503,000 402,360 Subtotal - Other Sectors $10,920,128 $10,689,398 $11,790.482 $14,747,358 $14.825,256 Total Sales Tax $16.653.819 $17.108.455 $18.690.943 $20.342.195 $20.955.889 Statistical Section, 7-19 2008 Comprehensive Annual Financial Report City of Renton, Washington TABLE 11 RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Page 1 of 2 2008 Primary Government Debt PWTF Loans 15% Enterprise Bonds 47% GO Bonds 38% Source: City of Renton, Finance and IS Department 'The percentage of personal Income column is based on personal income of King County. (See Table 16) Statistical Section, 7-20 GOVERNMENTAL ACTIVITIES BUSINESS -TYPE ACTIVITIES GENERAL SPECIAL FISCAL OBLIGATION ASSESSMENT ENTERPRISE PWTF YEAR BONDS BONDS BONDS LOANS 1999 $ 26,466,763 $ 680,000 $ 26,860,000 $ 9,024,460 2000 24,345,738 320,000 25,020,000 8,645,788 2001 29,289,290 135,000 23,070,000 7,894,357 2002 33,797,023 - 31,230,000 8,222,135 2003 32,245,982 29,070,000 7,579,447 2004 30,629,403 37,680,000 8,350,304 2005 29,107,664 35,790,000 11,581,168 2006 45,584,314 33,840,000 10,692,020 2007 44,017,551 33,405,000 9,802,877 2008 41,938,000 43,310,000 8,913,739 Source: City of Renton, Finance and IS Department 'The percentage of personal Income column is based on personal income of King County. (See Table 16) Statistical Section, 7-20 2008 Comprehensive Annual Financial Report $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 TABLE 11 RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Page 2 of 2 Primary Government Debt Total Debt 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Years City of Renton, Washington Statistical Section, 7-21 BUSINESS - TYPE ACTIVITIES PERCENTAGE' TOTAL PRIMARY OF FISCAL CAPITAL GOVERNMENT PERSONAL DEBT PER YEAR LEASES DEBT INCOME POPULATION CAPITA 1999 $ 42,276 $ 63,075,498 8.64% 47,620 $ 1,325 2000 86,609 58,420,135 7.56% 50,052 1,167 2001 45,656 60,436,304 7.86% 51,140 1,182 2002 7,238 73,258,398 9.40% 53,840 1,361 2003 58,105 68,955,537 8.71% 54,900 1,256 2004 33,834 76,695,545 8.68% 55,360 1,385 2005 8,621 76,489,458 8.59% 56,840 1,346 2006 24,500 90,140,834 9.22% 58,360 1,545 2007 76,074 87,301,502 8.17% 60,290 1,448 2008 55,155 94,216,894 N/A 78,780 1,196 Statistical Section, 7-21 2008 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 1999 2000 2001 2002 2003 $ 319,387,556 $ 340,899,076 $ 379,698,131 $ 419,541,037 $ 448,787,441 24,462,390 22,248,983 27,586,389 32,258,499 28,173,327 $ 294,925,166 $ 318,650,093 $ 352,111,742 $ 387,282,538 $ 420,614,114 Source: City of Renton, Finance and IS Department 7.66% 6.53% 7.27% 7.69% 6.28% Statistical Section, 7-22 2008 Comprehensive Annual Financial Report TABLE 12 LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS Page 2 of 2 City of Renton, Washington Statistical Section, 7-23 FISCAL YEAR 2004 2005 2006 2007 2008 Debt Limit $ 477,947,409 $ 502,332,893 $ 550,085,741 $ 627,810,135 $ 724,475,824 Total net debt applicable to limit 28,137,536 26,423,667 $ 42,515,728 42,624,636 40,667,064 Legal debt margin $ 449,809,873 $ 475,909,226 $ 507,570,013 $ 585,185,499 $ 683,808,760 Total net debt applicable to the limit as a percentage of debt limit 5.89% 5.26% 7.73% 6.79% 5.61% LEGAL DEBT MARGIN CALCULATION FOR FISCAL YEAR 2008 Assessed Value $ 9,659,677,654 Add back: exempt real property Total assessed value $ 9,659,677,654 Debt Limit 2.5% of general purpose limit, voted and non -voted $ 241,491,941 2.5% Utility purpose limit, voted 241,491,941 2.5% Open Space, Park and Capital facilities, voted 241,491,941 Total Debt Limit $ 724,475,824 Debt applicable to limit: General obligation bonds $ 41,938,000 Contracts Payable - 41,938,000 Less: Amount set aside for repayment of general obligation debt and contracts payable (1,270,936) Total net debt applicable to limit 40,667,064 Legal Debt Margin $ 683,808,760 Statistical Section, 7-23 2008 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 Debt �... zuu1 2002 2003 2004 2005 2006 2007 2008 Source: Finance Department, City of Renton King County Department of Assessments Statistical Section, 7-24 LESS: NET % OF GO GENERAL' AMOUNTS' GENERAL DEBT TO FISCAL OBLIGATION AVAILABLE OBLIGATION ASSESSED` ASSESSED PER YEAR BONDS IN DEBT DEBT VALUE VALUE CAPITA 1999 $ 26,466,763 $ 2,345,570 $ 24,121,193 $ 4,258,500,750 0.57% $ 507 2000 24,345,738 2,096,755 22,248,983 4,514,205,078 0.49% 445 2001 29,289,290 1,770,724 27,518,566 4,988,126,362 0.55% 538 2002 33,797,023 1,540,203 32,256,820 5,549,470,895 0.58% 599 2003 32,245,982 1,879,654 30,366,328 5,959,258,370 0.51% 553 2004 30,629,403 1,440,509 29,188,894 6,333,995,426 0.46% 527 2005 29,107,664 2,683,999 26,423,665 6,697,750,147 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 Source: Finance Department, City of Renton King County Department of Assessments Statistical Section, 7-24 2008 Comprehensive Annual Financial Report TABLE 14 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT City of Renton Direct and Overlapping Debt $260 $240 $220 $200 $180 w c $160 c c $140 N c $120 i $100 $80 $60 $40 $20 $0 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 2 King County Department of Assessments ESTIMATED DEBT OUTSTANDING APPLICABLE $ 41,938,000 100% 1,048,574,000 3.42% 378,065,000 3.42% 219,706,516 68.29% 312,553,997 2.13% 251,179, 043 0.7089% 0 0.6355% 9,381,826 39.6918% 66,359,355 1.50% City of Renton, Washington ESTIMATED SHARE OF OVERLAPPING DEBT $ 41,938,000 35,861,231 12,929,823 150,037,580 6,657,400 1,780,608 3,723,816 995,390 $ 211,985,848 $ 253,923,848 Statistical Section, 7-25 2008 Comprehensive Annual Financial Report 4.00 3.50 3.00 O 2.50 2.00 O O 1.00 0.50 0.00 TABLE 15 PLEDGED -REVENUE COVERAGE LAST TEN FISCAL YEARS WATER/SEWER & GOLF COURSE REVENUE BONDS 3.61 3.49 2.93 1 2.16 1.98 �v 2.30 2.40 3.07 2.90 2.86 1.28 I - WATT.EWER }I GOLF COURSE 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 YEARS City ofRenton, Washington 3.01 Notes: (a) Revenue includes connection charges, system development charges, latecomer fees, and interest revenue. (b) Bond 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. (c) 1999 Golf System Refunding Revenue Bonds were issued to refund the 1994 Golf System Revenue Bonds. Source: City of Renton, Finance and IS Department Statistical Section, 7-26 EXPENSES NET REVENUE FISCAL (a) W/O AVAILABLE FOR DEBT SERVICE (b) YEAR REVENUE DEPRECIATION DEBT SERVICE PRINCIPAL INTEREST COVERAGE WATER AND SEWER REVENUE BONDS: 1999 $ 21,784,310 $ 16,407,442 $ 5,376,868 $ 1,810,000 $ 1,333,452 1.71 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 32,887,264 22,020,637 10,866,627 1,810,000 1,803,687 3.01 GOLF COURSE REVENUE BONDS (c): 1999 $ 2,252,217 $ 1,278,489 $ 973,728 $ 280,000 $ 157,548 2.23 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 2,333,952 1,770,682 563,270 295,000 142,820 1.29 Notes: (a) Revenue includes connection charges, system development charges, latecomer fees, and interest revenue. (b) Bond 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. (c) 1999 Golf System Refunding Revenue Bonds were issued to refund the 1994 Golf System Revenue Bonds. Source: City of Renton, Finance and IS Department Statistical Section, 7-26 2008 Comprehensive Annual Financial Report 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% TABLE 16 DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS UNEMPLOYMENT RATE 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 City of Renton, Washington UN - SCHOOL PER CAPITA ENROLLMENT e RATE CITY OF PERSONAL PERSONAL KING COUNTY POPULATION a INCOME u INCOME' FISCAL KING MEDIAN YEAR COUNTY RENTON KING COUNTY KING COUNTY AGE 1999 $ 1,712,122 $ 47,620 $ 72,997,198,000 $ 42,218 35.50 2000 1,737,046 50,052 77,271,598,000 44,424 35.70 2001 1,758,312 51,140 76,883,017,000 43,764 35.92 2002 1,774,312 53,840 77,940,608,000 44,217 36.13 2003 1,779,300 54,900 79,199,166,000 44,800 36.38 2004 1,788,300 55,360 88,407,884,000 49,670 36.60 2005 1,808,300 56,840 89,032,307,000 49,488 36.83 2006 1,835,300 58,360 97,750,314,000 53,488 36.93 2007 1,861,300 60,290 106,805,239,000 57,710 36.97 2008 1,884,200 78,780 N/A N/A 37.00 Sources: a Washington State Office of Financial Management b U.S. Bureau of Economic Analysis U.S. Bureau of Economic Analysis Washington State Office of Financial Management e Renton Public Schools r Washington State Employment Security Department City of Renton, Washington 12,557 3.8% 12,527 4.1% 12,556 5.1% 12,892 6.1% 13,046 6.2% 13,062 5.2% 13,192 4.7% 13,397 4.2% 13,570 3.7% 13,836 4.2% Statistical Section, 7-27 UN - SCHOOL EMPLOYMENT ENROLLMENT e RATE CITY OF RENTON KING COUNTY 12,557 3.8% 12,527 4.1% 12,556 5.1% 12,892 6.1% 13,046 6.2% 13,062 5.2% 13,192 4.7% 13,397 4.2% 13,570 3.7% 13,836 4.2% Statistical Section, 7-27 2008 Comprehensive Annual Financial Report EMPLOYER Boeing Company Renton School District Federal Aviation Administration Valley Medical Center Paccarinc King County City of Renton Providence Health and Services ER Solutions Inc Wizards of the Coast Multiple Zones International K & L Distributors Wal Mart Stores Inc TABLE 17 PRINCIPAL EMPLOYERS 2008 EMPLOYEES' RANK % OF TOTAL CITY EMPLOYMENT 12,829 1 28.80% 1,426 2 3.20% 1,400 3 3.14% 1,331 4 2.99% 1,202 5 2.70% 886 6 1.99% 760 7 1.71% 734 8 1.65% 531 9 1.19% 472 10 1.06% 21,571 Source: 'Business license records and individual queries Source : City of Renton, Finance and IS Department City of Renton, Washington 1999 48.42% 26,038 57.33% Statistical Section, 7-28 % OF TOTAL CITY EMPLOYEES RANK EMPLOYMENT 19,193 1 42.26% 720 5 1.59% 1,127 4 2.48% 1,408 3 3.10% 1,459 2 3.21% 655 6 1.44% 390 8 0.86% 557 7 1.23% 273 9 0.60% 256 10 0.56% 48.42% 26,038 57.33% Statistical Section, 7-28 2008 Comprehensive Annual Financial Report This page intentionally left blank. City of Renton, Washington Statistical Section, 7-29 2008 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 FUNCTION General Government Public Safety Police Commissioned Officers Non -Commissioned Officers Fire Commissioned Officers Non -Commissioned Officers Planning/Building/Public Works Administration/Development Services Transportation Systems Utility Systems Maintenance Services Culture and Recreation Parks and Recreation Library Golf Course Total FISCAL YEAR 1999 2000 2001 2002 2003 85.1 90.1 93.5 97.5 96.5 85.0 85.0 86.0 88.0 88.0 34.2 34.2 36.2 40.2 40.2 103.0 105.0 105.0 105.0 105.0 10.0 11.0 11.0 12.0 12.0 43.2 42.7 42.7 42.7 42.7 32.0 33.0 33.0 34.0 33.0 20.2 20.7 20.8 20.8 20.8 59.5 59.5 61.0 61.0 62.0 77.5 78.5 80.5 77.5 77.5 15.0 15.0 15.0 15.0 15.0 9.0 9.0 10.0 10.0 10.0 573.7 583.7 594.7 603.7 602.7 Source: City of Renton, Finance and IS Department Note: ' In 2008, Development Services moved from Public Works to Community and Economic Development which is listed under General Government. Statistical Section, 7-30 2008 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 FUNCTION General Government Public Safety Police Commissioned Officers Non -Commissioned Officers Fire Commissioned Officers Non -Commissioned Officers Planning/Building/Public Works Administration/Development Services Transportation Systems Utility Systems Maintenance Services Culture and Recreation Parks and Recreation Library Golf Course Total FISCAL YEAR 2004 2005 2006 2007 2008 97.5 94.5 89.5 95.0 155.6 89.0 91.0 97.0 122.0 124.0 41.2 43.2 42.2 49.2 51.2 106.0 106.0 106.0 109.0 118.0 13.0 13.0 14.0 16.0 17.0 42.7 42.5 46.5 49.0 4.0 34.5 34.5 35.5 40.5 41.0 20.8 20.8 24.8 29.3 36.7 62.0 62.0 64.1 71.0 88.0 77.5 76.5 76.5 81.0 89.5 15.0 14.0 14.0 15.0 15.0 10.0 10.0 10.0 10.0 10.0 609.2 608.0 620.0 687.0 750.0 Statistical Section, 7-31 2008 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 1999 2000 2001 2002 2003 FUNCTION Police Physical arrests 2,287 2,463 3,411 3,813 3,735 Parking violations 3,379 5,955 6,325 4,776 2,742 Traffic violations 11,832 12,188 10,936 11,448 11,651 Fire Number of calls answered 7,698 7,895 8,273 8,233 8,582 Inspections 2,021 2,265 2,269 2,261 2,681 Highways and Streets Street resurfacing (miles) 4.65 1.76 6.54 6.13 4.85 Recyclables collected (tons/yr) 5,045.7 5,493.8 5,793.6 5,119.8 4,389.0 Culture and Recreation Athletic field attendence 86,527 87,000 119,422 126,534 137,811 Community Center admissions 148,041 156,500 174,500 162,970 172,911 Library Volume in collections 153,935 147,818 148,758 155,463 158,676 Total volumes borrowed 334,619 352,334 382,443 456,982 499,792 Water Metered connection 14,279 14,224 13,969 14,583 15,181 Average daily consumption 7,426.5 7,457 7,097 7,232 7,581 (thousands of gallons) So Peak daily consumption 11,472 13,590 11,960 12,477 14,080 (thousands of gallons) Source: City of Renton Departments Statistical Section, 7-32 2008 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 2004 2005 2006 2007 2008 FUNCTION Police Physical arrests 4,280 4,590 2,489 2,925 3,580 Parking violations 3,733 3,575 3,520 5,995 5,117 Traffic violations 10,963 12,866 10,172 9,148 10,705 Fire Number of calls answered 8,984 9,202 10,096 10,159 12,402 Inspections 2,539 3,438 3,505 3,197 2,772 Highways and Streets Street resurfacing (miles) 3.67 3.69 3.86 1.59 2.59 Recyclables collected (tons/yr) 4,920.3 4,934.2 4,843 5,004 5,395 Culture and Recreation Athletic field participants 156,707 155,000 155,000 91,053 93,000 Community Center participants 172,537 177,761 177,761 162,476 155,000 Library Volume in collections 165,406 190,011 193,965 188,359 194,497 Total volumes borrowed 512,059 491,470 464,333 491,397 554,223 Water Metered connection 15,379 16,585 16,668 16,958 17,172 Average daily consumption 7,635 7,306 7,999 8,008 7,388 (thousands of gallons) Peak daily consumption 14,248 13,025 15,271 14,750 12,739 (thousands of gallons) Statistical Section, 7-33 2008 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 1999 2000 2001 2002 2003 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) 180.6 195.4 195.6 213.2 213.7 Streetlights (added) 46.0 69.0 75.0 53.0 120.0 Culture and recreation Parks acreage 1,158.0 1,158.0 1,158.0 1,158.0 1,158.0 Parks 28.0 28.0 26.0 26.0 26.0 Swimming pools - - - - - 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) 252.2 278.0 283 289.0 291.0 Fire hydrants 2,893 2,993 3,102 3,193 3,240 Sewer Sanitary sewers (miles) 170.9 162.6 168.1 176.7 183.5 Storm sewers (miles) 180.9 183.8 189.7 199.4 204.0 Source: City of Renton Departments Statistical Section, 7-34 2008 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 2004 2005 2006 2007 2008 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 10.0 Fire stations 5.0 5.0 5.0 5.0 6.0 Highways and streets Street (miles) 213.7 218.0 224.6 233.7 263.8 Streetlights 92.0 86.0 134.0 213.0 230.0 Culture and recreation Parks acreage 1,158.0 1,158.0 1,160.0 1,160.0 1,181.0 Parks 26.0 26.0 26.0 28.0 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) 291.1 293.0 295.0 300.0 304.0 Fire hydrants 3,274 3,374 3,440 3,544 3,602 Sewer Sanitary sewers (miles) 189.6 193.3 204.9 206.3 215.7 Storm sewers (miles) 209.7 214.8 219.7 222.3 267.5 Statistical Section, 7-35 2008 Comprehensive Annual Financial Report This page intentionally left blank. City of Renton, Washington Statistical Section, 7-36