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HomeMy WebLinkAboutQUARTER 4 2022Page 1 of 36   OVERVIEW  This quarterly financial report reflects the city’s revenue and expenditures/expenses for the fiscal year through December 31,  2022. A detailed analysis, including current to prior year and budget to actual comparison is included for each city fund.  Excluded from this report are the city’s fiduciary funds as these funds are held on behalf of others and are not available for  city use. Budget figures shown reflect amounts authorized in ORD 6083, which includes the year end budget adjustment  approved October 17, 2022.     GENERAL FUND  The General Fund is used to account for resources that are not generally dedicated for a specific purpose. The General Fund  is used to meet the basic services that the city provides including, but not limited to, police protection, parks and recreation,  human services, municipal court, street maintenance and planning, economic development, and administrative functions.  The table below displays the YTD revenues and expenditures for the General Fund, including comparison to prior year,  comparison to YTD budget amounts, and percentage of annual budget. YTD budget amounts are generally based on the  collection/disbursement patterns for the same period of the preceding two (2) years, with the following exceptions: property  tax revenue budgets are based on the collection patterns over the preceding four (4) years and sales tax revenue budgets are  based on the collection patterns over the preceding five (5) years.           General Fund YTD Prior Year YTD YTD Budget % BUDGET REVENUES Taxes 93,151,257$      94,129,262$    102,213,407$   9,062,150$        8,084,145$        108.59% Licenses & Permits 5,255,808            6,322,163          7,455,983            2,200,175$        1,133,820           117.93% Intergovernmental 8,843,799            22,216,538       17,604,837         8,761,038$        (4,611,701)          79.24% Charges for  Services 8,988,252            9,912,049          10,101,988         1,113,736$        189,939                101.92% Fines  and Penalties 4,622,320            3,829,782          4,142,205            (480,115)$           312,423                108.16% Miscellaneous 1,752,739            2,042,296          3,178,269            1,425,530$        1,135,973           155.62% Other  Financing Sources  (Transfer ‐In, etc) (614,116)               (344,366)             (80,253)                  533,863$             264,113                N/A TOTAL  REVENUES 122,000,059      138,107,724    144,616,436      22,616,377        6,508,712           104.71% EXPENDITURES City Attorney 2,440,373            3,179,689          2,802,425            (362,052)              377,264                88.14% Community and Economic Development 9,980,902            14,000,994       11,231,574         (1,250,672)          2,769,420           80.22% Council 592,929                715,534               656,186                 (63,257)                 59,348                   91.71% Court Services 2,622,084            3,646,622          3,082,719            (460,635)              563,903                84.54% Equity, Housing, and Human Services 3,139,628            5,641,449          3,522,799            (383,171)              2,118,650           62.44% Executive  Services 4,375,714            6,101,756          5,411,696            (1,035,982)          690,060                88.69% Finance 3,844,375            5,245,748          4,581,257            (736,882)              664,491                87.33% Human Resources 1,398,222            1,783,308          1,480,889            (82,667)                 302,419                83.04% Parks and Recreation 12,281,772         17,633,848       15,507,241         (3,225,469)          2,126,607           87.94% Police 41,077,138         48,300,026       46,278,533         (5,201,396)          2,021,493           95.81% Public Works 13,182,021         16,225,445       15,760,740         (2,578,719)          464,705                97.14% Other Non‐Departmental 12,418,823         21,759,550       19,797,063         (7,378,240)          1,962,487           90.98% TOTAL  EXPENDITURES 107,353,981      144,233,969    130,113,122      (22,759,142)       14,120,847        90.21% Change in Fund Balance 14,646,078         (6,126,245)         14,503,314         (142,764)              20,629,559        N/A Beginning Fund Balance 54,456,582         69,102,662       69,102,662         14,646,080         ‐                            100.00% ENDING  FUND BALANCE 69,102,660$      62,976,417$    83,605,976$      14,503,316$     20,629,559$     132.76% Operating Reserve  13,994,674         11,537,583       11,537,583          Economic Development Reserve 2,500,000            2,500,000          2,500,000             AVAILABLE FUND BALANCE 52,607,986$      48,938,834$    69,568,393$       Summary of Sources and Uses Favorable  (Unfavorable) 2021 2022 Variance YTD Actual Annual  Budget YTD Actual Quarterly Financial Report 4th Quarter 2022  Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 2 of 36   GENERAL FUND REVENUES  The following tables provide a more detailed summary of each revenue category within the General Fund. Detailed  explanations have been provided for variances from prior year or YTD budget in excess of $100K.  All variances are shown in  a favorable/(unfavorable) format.    TAXES     Property Tax – Property tax collections by King County have exceeded prior year and budget primarily due to increased  property values and a surge in property sales within the region. Additionally, a small portion of current year property tax  revenue ($264K) is attributed to prior years’ delinquent taxes.     Local Retail Sales Tax – Local retail sales tax exceeded prior year and YTD budget. The majority of the increase in local retail  sale tax revenues over the prior year is coming from the services, wholesale, and retailing sectors.  It is important to note that  sales tax revenues have a two‐month lag between the time of the sale and the city’s receipt of the sale tax from the State.   Please see the December sales tax report for information regarding sales tax figures by industry.    Criminal Justice Sales Tax – Criminal justice sales tax represents a 0.1% sales tax imposed by the county for criminal justice  purposes. The county must share 90% of the revenue collected with all cities and towns in the county on a per capita basis.  The increase in criminal justice sales tax directly relates to the increase in local retail sales tax, as described above.    Natural Gas Use Tax – Natural gas use tax represents a 6% tax on the usage of natural gas within the city that has not other  wise been subject to city utility tax. The increase over 2022 budget is due to higher than anticipated usage as this fluctuates  from year to year and is only paid by a limited number of larger companies.     Admissions Tax – An increase in admission tax over prior year and budget is largely due to an increase of in‐person events  with the restrictions of the pandemic lifted. In addition, the city began collection of admission tax on green fees at the  Maplewood Golf Course.     Utility Tax – Utility tax revenue budget was reduced in previous years due to the utility moratorium during the pandemic.   After the utility moratorium was lifted in September 2021, revenue rebounded to pre‐pandemic figures. Electric and natural  gas utility tax exceeds budget and is higher than prior year largely due to an increase of use; more commercial office spaces  and workplaces have returned to the office.  The breakdown of utility tax is as follows:  2021 2022 2022 Actual Budget Actual $ % $ % Property Tax 22,582,760         22,709,653          23,243,679         660,919              2.9% 534,026              2.4% Local Retail  Sales  Tax 32,659,993         34,076,430          37,514,922         4,854,929         14.9% 3,438,492         10.1% State Sales  Tax  Credit 790,863                 736,380                 746,643                 (44,220)                ‐5.6%10,263                 1.4% Criminal Justice Sales  Tax 3,440,504            3,063,215             3,830,215            389,711              11.3% 767,000              25.0% Natural Gas Use  Tax 135,207                 112,055                 221,849                 86,642                 64.1% 109,794              98.0% Admission  Tax 31,794                    232,722                 367,107                 335,313              1054.6% 134,385              57.7% Utility Tax 16,664,173         16,233,912          17,463,626         799,453              4.8% 1,229,714         7.6% Leasehold Excise  Tax 168,949                 179,895                 176,172                 7,223                    4.3%(3,723)                   ‐2.1% Gambling Excise  Tax 4,063,341            3,285,000             4,155,272            91,931                 2.3% 870,272              26.5% B&O Tax 12,613,673         13,500,000          14,493,922         1,880,249         14.9% 993,922              7.4% YTD  Total 93,151,257$      94,129,262$       102,213,407$   9,062,150$      9.7% 8,084,145$      8.6% Annual  Total 93,151,257$      94,129,262$        Taxes  by Type Revenue 2022 vs. 2021 2022 vs. Budget Year to Date through December Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 3 of 36       Gambling Excise Tax – Gambling excise tax can fluctuate based on the economy; therefore, budget is established based on a  historical average from prior years. Current year revenue is above budget due to substantial increases from the card games  tax.      Business and Occupation (B&O) Tax – B&O tax revenue relies heavily on the revenue of a limited number of large businesses.   Beginning in 2022, the city increased the maximum tax cap any one taxpayer is required to pay in a year by $2M, contributing  to the increase of B&O tax over prior year.    LICENSES & PERMITS      Franchise Fees –Cable franchise fees make up about 80‐90% of franchise fee revenue. As consumers continue to make  changes in their use of cable services, this revenue is expected to decrease along with cable utility tax revenue.     Business Licenses – The amount of business license revenue over budget is due to better‐than‐expected economic recovery.  In addition, $193K of the fees collected in December represent early payments for license fees due in January 2023.      Building Permits – Building permit revenue exceeded prior year and budget due to a general increase in the construction  industry. One large impact in 2022 was the permit for Solera project.   Building permits are collected upon permit issuance.    INTERGOVERNMENTAL      State Shared Revenue – The breakdown of state shared revenue is as follows:    2021 2022 2022 Tax  by Type YTD  Actual YTD  Budget YTD Actual $ % $ % Electrical 5,783,014$     5,574,163$         6,132,308$                349,294$                    6.0% $      558,145 10.0% Natural  Gas 1,606,373        1,729,124            1,806,540                   200,167                       12.5%             77,416 4.5% Cell 571,889            530,516                 566,149                       (5,740)                             ‐1.0%             35,633 6.7% Phone 826,519            762,756                 740,355                       (86,164)                          ‐10.4%           (22,401)‐2.9% Cable 1,422,996        1,201,215            1,371,854                   (51,142)                          ‐3.6%          170,639 14.2% Garbage 744,745            736,722                 739,140                       (5,605)                             ‐0.7%                2,418 0.3% City Utilities 5,708,637        5,699,416            6,107,280                   398,643                       7.0%          407,864 7.2% YTD  Total 16,664,173$  16,233,912$      17,463,626$             799,453$                    4.8%1,229,714$  7.6% 2022 vs. 2021 2022 vs. Budget 2021 2022 2022 Actual Budget Actual $ % $ % Franchise  Fees 1,598,057            1,659,950             1,485,576            (112,481)             ‐7.0% (174,374)             ‐10.5% Business Licenses 1,085,936            927,968                 1,130,404            44,468                 4.1% 202,436              21.8% Animal  Licenses 67,890                    93,174                    62,050                    (5,840)                   ‐8.6% (31,124)                ‐33.4% Building Permits 2,461,650            3,593,571             4,742,534            2,280,884         92.7% 1,148,963         32.0% ROW/Street Excavation  Permits 41,765                    46,500                    34,399                    (7,366)                   ‐17.6% (12,101)                ‐26.0% Special  Event  Permits 510                           1,000                       1,020                       510                        100.0% 20                           2.0% YTD  Total 5,255,808$         6,322,163$          7,455,983$         2,200,175$      41.9% 1,133,820$      17.9% Annual  Total 5,255,808$         6,322,163$           Licenses & Permits by Type Year to Date through December Revenue 2022 vs. 2021 2022 vs. Budget 2021 2022 2022 Actual Budget Actual $ % $ % State Shared Revenue 4,463,819            3,949,223$          4,101,311            (362,508)$          ‐8.1%152,088$           3.9% Federal Grants 4,020,044            17,171,538          13,364,303         9,344,259         232.4%(3,807,235)         ‐22.2% State Grants 84,403                    875,492                 81,010                    (3,393)                   ‐4.0% (794,482)             ‐90.7% Local Grants 275,533                 220,285                 58,213                    (217,320)             ‐78.9% (162,072)             ‐73.6% YTD  Total 8,843,799$         22,216,538$       17,604,837$      8,761,038$      99.1%(4,611,701)$      ‐20.8% Annual  Total 8,843,799$         22,216,538$        Intergovernmental by Type Revenue 2022 vs. 2021 2022 vs. Budget Year to Date through December Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 4 of 36       Criminal Justice One Time – The decrease from prior year is due to a one‐time payment received in 2021 intended to offset  costs generated by law enforcement and criminal justice related legislation enacted between January 1, 2020, and June 30,  2021.    Liquor Excise Tax – The amount over budget is due to higher than anticipated state share of liquor excise taxes. This budget  will be monitored and adjusted as needed as revenues continue to come in higher than anticipated.    Fuel Tax – The amount under budget is due to a lower than anticipated state share in 2022 which is distributed based on a  per capita basis. Future years could see a decrease in fuel tax shared revenue due to an increasing number of electric vehicles  in the market.     Federal/State/Local Grants – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is budgeted  at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires. The variance is largely due to ARPA  as the city recognized $10M more in 2022 than in prior year and has a remaining budget balance of $2.7M.      CHARGES FOR SERVICES       Public Safety Services – The decrease in public safety services from prior year is primarily due to a decrease in police private  security revenue attributed to staffing shortfalls and the need to cover minimum staffing related to city operations before  contracting officers for private security opportunities. Additionally, electronic home detention services is down due to a  reduction in sentencing eligible offenders to this program.      Development Services ‐ The increase in development services from prior year and budget is due to an increase in fees for  permits and inspections.  Several one‐time fees for large projects were collected in 2022, including inspection appraisal fees  for King County’s Central Maintenance Facility (Renton Shop) and the Solera project (affordable and market‐rate housing).    2021 2022 2022 Tax  by Type YTD  Actual YTD  Budget YTD Actual$%$% Judicial Contribution 53,812$         17,212$         32,326$         (21,486)$       ‐39.9%15,114$        87.8% Crim Just ‐ Pop 34,718            24,725            36,822            2,104              6.1% 12,097           48.9% Crim Just ‐ Spec Prog 123,625         113,286         130,560         6,935              5.6% 17,274           15.2% Crim Just ‐ One  Time 420,599          ‐                            ‐                           (420,599)      N/A ‐                          N/A State  DUI 17,282            9,000               12,269            (5,013)             ‐29.0%3,269              36.3% Marijuana  Distribution 229,998         195,000         289,291         59,293           25.8% 94,291           48.4% Liquor Profits 833,694         850,000         830,938         (2,756)             ‐0.3% (19,062)          ‐2.2% Liquor Excise  Tax 738,940         497,350         757,497         18,557           2.5% 260,147        52.3% Fuel  Tax 2,011,151     2,242,650     2,011,608     457                  0.0%(231,042)       ‐10.3% YTD  Total 4,463,819$  3,949,223$  4,101,311$  (362,508)$   ‐8.1%152,088$     3.9% 2022 vs. 2021 2022 vs. Budget 2021 2022 2022 Actual Budget Actual $ % $ % Passport Fees 105                           35,000                    10,320                    10,215                 9728.6%(24,680)                ‐70.5% Court Services 106,751                 77,500                    175,939                 69,189                 64.8% 98,440                 127.0% General Government Services 461                           500                            277                           (183)                        ‐39.8% (223)                        ‐44.6% Public Safety Services 1,175,389            1,019,903             713,498                 (461,892)             ‐39.3% (306,405)             ‐30.0% Development Services 2,405,883            2,220,594             3,139,883            734,000              30.5% 919,289              41.4% Transportation Services 56,659                     ‐                                   31,645                    (25,014)                ‐44.1%31,645                 100.0% Social  Services 221,596                 204,331                 184,759                 (36,837)                ‐16.6% (19,572)                ‐9.6% Recreation/Farmer's  Market/Events 337,297                 1,097,658             1,338,919            1,001,622         297.0% 241,261              22.0% Interfund Services 4,684,111            5,256,565             4,506,749            (177,362)             ‐3.8% (749,816)             ‐14.3% YTD  Total 8,988,252$         9,912,049$          10,101,988$      1,113,737$      12.4% 189,940$           1.9% Annual  Total 8,988,252$         9,912,049$           Year to Date through December Charges for  Services  by Type Revenue 2022 vs. 2021 2022 vs. Budget Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 5 of 36   Recreation/Farmer’s Market/Events – The increase over prior year and budget is due to reopening several recreational  facilities in 2022 that had been closed in prior years due to COVID‐19. Recreation activities at the Community Center and  Henry Moses Aquatic Center (HMAC) experienced greater than anticipated revenue above budget due to increased  participation.     Interfund Services – Interfund services revenue decreased from prior year and current year budget due to a decrease in  reimbursement of staffing costs from CIP projects and a decrease in indirect costs charged.      FINES AND PENALTIES      Photo Enforcement Program – Photo enforcement revenue has decreased from prior year primarily due to a surge in photo  revenue that occurred in 2021 as school zone cameras were turned back on for in‐person learning; revenue has normalized  in 2022. Higher than anticipated revenue over budget occurred in 4th quarter, averaging $100K higher per month than prior  quarters largely driven school zone cameras.      MISCELLANEOUS REVENUES      Interest and Other Investment Earnings – Investment earnings have rebounded significantly in 2022 and are currently above  prior year as well as budget. Investment earnings have varied over the past couple of years as the market has seen uncertainty  with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate, and we may  continue to see a rise in investment earnings as this is adjusted.     Rents, Leases, and Concessions – Rents, leases, and concessions revenues increased over the prior year primarily due to rent  waivers provided in 2021 in response to COVID‐19 that were discontinued in 2022, as well as the reopening of several city  facilities including the Renton Community Center and Henry Moses Aquatic Center.     Contributions/Donations – Contributions and donations above budget are due to a one‐time latecomer assessment related  to the Sunset Lane NE Improvement project (Ordinance 5961).     Other – The increase from prior year is primarily due to payments received in relation to the opioid settlement in 2022 of  $122K, the city will be receiving payments annually.           2021 2022 2022 Actual Budget Actual $ % $ % Civil Penalties 237,545$              293,293$              264,383$              26,838$              11.3%(28,910)$             ‐9.9% Photo Enforcement  Program 4,222,877            3,387,000             3,679,876            (543,001)             ‐12.9%292,876              8.6% Criminal Traffic  Misdemeanor Fines 44,791                    47,447                    29,079                    (15,711)                ‐35.1% (18,368)                ‐38.7% Criminal Non‐Traffic  Fines 5,650                       14,500                    3,953                       (1,697)                   ‐30.0% (10,547)                ‐72.7% Criminal Costs 35,527                    36,960                    29,939                    (5,588)                   ‐15.7% (7,021)                   ‐19.0% Non‐Court Fines, Forfeitures and Penalties 75,930                    50,582                    134,975                 59,045                 77.8% 84,393                 166.8% YTD  Total 4,622,320$         3,829,782$          4,142,205$         (480,115)$          ‐10.4%312,423$           8.2% Annual  Total 4,622,320$         3,829,782$           Fines  and Penalties by Type Revenue 2022 vs. 2021 2022 vs. Budget Year to Date through December 2021 2022 2022 Actual Budget Actual $ % $ % Interest and Other Investment Earnings 381,777$              205,804$              1,063,310$         681,533$           178.5% 857,506$           416.7% Rents, Leases, and Concessions 981,108                 1,494,210             1,422,416            441,308              45.0%(71,794)                ‐4.8% Contributions/Donations  from Private Source s 275,820                 87,160                    345,480                 69,660                 25.3% 258,320              296.4% Other 114,034                 255,122                 347,063                 233,029              204.4% 91,941                 36.0% YTD  Total 1,752,739$         2,042,296$          3,178,269$         1,425,530$      81.3% 1,135,973$      55.6% Annual  Total 1,752,739$         2,042,296$           Miscellaneous  by Type Year to Date through December Revenue 2022 vs. 2021 2022 vs. Budget Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 6 of 36   OTHER FINANCING SOURCES      Transfers from Other Funds – The amount over prior year relates to the return of funding from the capital projects fund for  the Family First Center.  The funding previously transferred to support the construction project has been replaced with Real  Estate Excise Tax (REET) revenue.      Prior Period Adjustment – The difference between prior year and current year is due to the refund of interfund interest to  the waterworks utility fund resulting from an overpayment in prior years, offset by golf admissions tax due to the general  fund from prior years.       Insurance Recoveries – The increase from prior year is due to an increase in property loss claims and associated  reimbursement from the Insurance Fund. Notable claims include a signal repair/replacement at Talbot & Grady Way ($80K)  and a traffic signal control box repair of Maple Valley Hwy ($60K). Insurance recoveries are generally not budgeted as they  are not a predictable source of revenue.     GENERAL FUND EXPENDITURES  The following tables summarize expenditures by category for each department within the General Fund.       Personnel – Personnel costs are budgeted at 100% of the position cost each year resulting in a budget variance if positions  remain open for any part of the year. The increase in personnel costs over prior year is due to filling positions that were  previously held vacant in 2021 in response to COVID‐19; a cost‐of‐living increase citywide upon settlement of union contracts;  and retroactive police wage increases for 2021 per union negotiated contracts. Personnel costs under budget is due to open  positions; there are currently 62 vacancies as of December 31st.    Supplies – The increase over prior year primarily relates to an increase in street maintenance supplies of $271K, specifically  sand and de‐icer for early December snow and ice as well as asphalt supplies. With the purchase of the new advanced paving  equipment and being fully staffed, this group has been able to complete substantially larger projects on a more frequent  basis then in the past. Recreation increased from prior year $171k largely due to the replacement of furniture at the Renton  Community Center and program supplies for recreation programs as many programs were paused or decreased in 2021,  police special operations saw an increase from prior year $52k due to additional SWAT activity.      The amount over YTD budget is due to street maintenance supplies related to asphalt an snow and ice supplies $297k, and  police special operations expenditures primarily attributed to SWAT $102k, offset by savings from multiple departments not  expending their entire supplies budgets in 2022.     Contracted Services ‐ The increase in contracted services is over prior year are due to the following:   2021 2022 2022 Actual Budget Actual $ % $ % Transfers  from Other Funds 82,198$                 3,054,187$          3,054,187$         2,971,989         3615.6% 0                              0.0% Prior Period Adjustment (775,836)               (3,437,067)           (3,437,067)           (2,661,231)        343.0% 0                              0.0% Interfund Loan Payment Received ‐                                   38,514                    38,514                    38,514                 100.0% 0                              0.0% Insurance Recoveries 37,804                     ‐                                   262,113                 224,309              593.3% 262,113              100.0% Sale  of Capital Assets 41,718                     ‐                                   2,000                       (39,718)                ‐95.2%2,000                    100.0% YTD  Total (614,116)$            (344,366)$             (80,253)$               533,863$           ‐86.9%264,113$           ‐76.7% Annual  Total (614,116)$            (344,366)$              Revenue 2022 vs. 2021 2022 vs. Budget Year to Date through December Other Financing Sources  by Type General Fund Summary of Uses 2021 Year to Date through December YTD Actual YTD Budget YTD Actual $%$% Personnel 60,426,377$     76,903,680$          67,280,065$       (6,853,688)$       ‐11.3% 9,623,615$         12.5% Supplies 1,414,726           1,802,775                1,987,372             (572,646)               ‐40.5%(184,597)               ‐10.2% Contracted Services 20,304,130        27,623,810             22,499,188          (2,195,058)          ‐10.8% 5,124,622            18.6% Capital Outlay 1,357,841           127,474                    122,019                  1,235,822            91.0% 5,455                       4.3% Debt Service ‐                            225,309                    225,309                  (225,309)               100.0%‐                             0.0% Internal Services 14,610,565        20,520,495             21,140,231          (6,529,666)          ‐44.7%(619,736)               ‐3.0% Transfers  Out 9,240,342           17,030,426             16,858,938          (7,618,596)          ‐82.4% 171,488                 1.0% Total  Expenditures 107,353,981     144,233,969          130,113,122       (22,759,141)        ‐21.2% 14,120,847         9.8% Annual Total 107,353,981     144,233,969           2022 2022 vs. 2021 2022 vs. Budget Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 7 of 36    Increase in SCORE and ValleyComm costs of $365K;    Increase in community economic development expenditures of $751K for small business grants, downtown  cleaning, hanging basket program, Shop Local program, Main Street Renton strategic program, Transit Oriented  Development Implementation (TODI) grant, and Rainier/Grady Junction planned action program;   Increase in human services expenditures of $668K for human services agency funds paid to vendors to provide  human services needs and one‐time CDBG funds;   Increase in recreation expenditures of $249K due to program costs for instructor fees as recreation reopened in  2022 and recreation grant expenditures;    Increase in non‐departmental of $435K for increased expenditures related to HB1406 funds for South King Housing  and Homeless Partners (SKHHP);   Decrease in housing of $825K due to one‐time payments to RHA in 2021    The amount under budget is primarily driven by the following:   ARPA funds allocated for business grants of $600K were budgeted in support for downtown business impacted by  the pandemic of which $132K remains unspent;    Human Services of $775K remains unspent for equity and community assessment, as well as $1.4M in unspent  grant funds for CDBG and ARPA allocations;    Economic development contracted services and professional services budget of $557K that remain unspent  including Main Street Renton and unspent grant funds;   Police ValleyComm expenditures coming in less than anticipated by $313K;   Reserve budget at $1.5M     Capital Outlay – Economic development capital outlay is associated with the Downtown Streetscape project being funded  through a CDBG grant. Prior year figures include the funding of those one time planning/construction costs.     Debt Service – The general fund issued an interfund loan to the Maplewood golf course to fund the purchase of golf carts.   This interfund loan was approved in 2021 however due to supply chain issues the carts were not received until 2022.    Internal Services – The amount increased from prior year primarily due to increased insurance costs in Insurance Fund of  $1.2M; IT Fund costs of $1.7M for Eden replacement recovery; increased facility costs of $1.5M associated with return to in‐ person work and greater share of direct usage costs allocated to general fund departments; and increased communications  charges of $650K due to a significant refund in prior year from true up of costs. The amount over budget is due to increased  insurance premium costs added late in the year in 2022.       Interfund Transactions – Increase over prior year relates to: (1) $5.5M property tax transfer to fund IT for broadband Wi‐Fi  project and body cameras, and facilities for the City Hall lobby remodel project, HMAC project and Renton Community  Center project and (2) $2.9M B&O tax transfer to fund IT for Eden replacement of $1.3M and facilities for the Pavilion  remodel of $500K and ESCO Phase 3 project of $1.4M.                                     Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 8 of 36   DEBT SERVICE FUNDS  Debt service funds are used to account for the accumulation of resources for the payment of principal and interest related to  the City’s general obligation bond issues. YTD budgets are not prepared for debt service funds.     GENERAL GOVERNMENTAL MISCELLANEOUS DEBT FUND  The General Governmental Miscellaneous Debt Fund is the only debt service fund maintained by the city.        Principal/Interest – The amount under prior year is due to paying off the 2011 general obligation library bonds in 2021.    Transfers In ‐ The decrease from prior year is due to the 2011 general obligation library bonds being paid off resulting in no  additional transfer required. The $200K difference in budget is due to not transferring the full LRF sales tax budgeted amount;  only actual amount received in 2022 of $500K can be transferred.                                     2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants  / intergovernmental 114,740$              44,610$                  44,705$         (70,035)$      95$                  100.21% Investment Earnings 28,416                    ‐                                51,743           23,327          51,743            N/A TOTAL  REVENUES 143,156                44,610                    96,448           (46,708)         51,838            216.20% EXPENDITURES: Principal 5,625,158             3,069,547               3,069,547      2,555,611     ‐                        100.00% Interest 1,500,315             1,272,373               1,271,720      228,595        653                  99.95% TOTAL  EXPENDITURES 7,125,473             4,341,920               4,341,267      2,784,206    653                  99.98% Transfers  In 7,189,814             4,489,359               4,289,359      (2,900,455)   (200,000)         95.55% NET TRANSFERS 7,189,814             4,489,359               4,289,359      (2,900,455)   (200,000)         95.55% CHANGE IN  FUND BALANCE 207,496                192,049                  44,540           (162,956)      (147,509)         23.19% BEGINNING FUND BALANCE, Jan 1 5,010,629             5,218,125               5,218,125      207,496         ‐                        100.00% ENDING FUND BALANCE, Dec 31 5,218,125$           5,410,174$            5,262,665$   44,540$        (147,509)$      97.27% Debt Service Reserve 2,717,575             2,717,575               2,717,575       AVAILABLE FUND BALANCE 2,500,550$           2,692,599$            2,545,090$    VARIANCE FAVORABLE (UNFAVORABLE) GENERAL  GOVERNMENTAL  MISCELLANEOUS DEBT Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 9 of 36   SPECIAL REVENUE FUNDS  Special revenue funds are used to account for revenues that are to be used for a specific purpose as required by law or  legislative action. YTD budgets are not prepared for special revenue funds. Detailed explanations will be provided for material  differences between prior year and or budgeted amounts.      Hotel/Motel Fund  The Hotel/Motel 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, as authorized under RCW 67.28.180. The Lodging Tax Advisory Committee solicits  applications for awards and brings their recommendations to Council for approval at least once per year. Awards for events  are paid to applicants at the conclusion of the event once certain reporting requirements have been met.        Taxes – Tax revenue is up from prior year and budget as many hotels were only open in limited capacity during 2021 and  have since rebounded to pre‐pandemic levels.                                                2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 283,113$              200,000$                519,434$              236,321$              319,434$              259.72% Contributions 25,000                   25,000                     25,000                    ‐                               ‐                              100.00% Investment Earnings 4,306                      ‐                                9,297                     4,991                     9,297                     N/A TOTAL  REVENUES 312,419                225,000                   553,731                241,312                328,731                246.10% EXPENDITURES: Contracted Services 437,601                578,207                   529,768                (92,167)                 48,439                   91.62% TOTAL  EXPENDITURES 437,601                578,207                   529,768                (92,167)                 48,439                   91.62% Transfers  Out (40,000)                 (40,000)                    (40,000)                  ‐                               ‐                              N/A NET TRANSFERS (40,000)                 (40,000)                    (40,000)                  ‐                               ‐                              N/A CHANGE IN  FUND BALANCE (165,182)               (393,207)                 (16,037)                 149,145                377,170                4.08% BEGINNING FUND BALANCE, Jan 1 893,604                728,421                   728,421                (165,183)                ‐                              81.51% ENDING FUND BALANCE, Dec 31 728,422$              335,214$                712,384$              (16,038)$               377,170$              97.80% VARIANCE FAVORABLE (UNFAVORABLE) HOTEL/MOTEL Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 10 of 36   Cable Communications Fund  The Cable Communications Fund accounts for funding for promotion and development of cable communications as  established by city ordinance. The main use of the fund is to support the broadcasting of City Council meetings on Channel  21.      Supplies/Contracted Services – Increase in supplies and contracted services from prior year is due to the replacement of  audio video equipment in council chambers in 2022.     Housing & Supportive Services  In accordance with HB 1590, the City Council passed ORD 5983 authorizing an additional 0.1% sales and use tax, effective  January 1, 2021. The additional sales tax was not authorized at the time the 2021‐2022 budget was prepared. Anticipated  revenues are expected to be included in the mid‐biennial budget adjustment. The additional sales and use tax is restricted  for housing and related services, in accordance with RCW 82.14.530.       Taxes – Tax revenues increased from prior year due to an increase in overall sales tax performance, see page 2 of this report  for additional information.     Contracted Services – Increase in contracted services is due to a housing services grant of $1.5M paid to Renton Housing  Authority to support Sunset Gardens, a new construction project that will help increase the available supply of affordable  housing in Renton.      2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses  and permits 72,260$                57,674$                    62,730$                (9,530)$                 5,056$                   108.77% Investment Earnings 3,331                      ‐                                  6,014                     2,683                     6,014                     N/A TOTAL  REVENUES 75,591                   57,674                      68,744                   (6,847)                    11,070                   119.19% EXPENDITURES: Supplies 6,184                     240,136                    159,574                153,390                80,562                   66.45% Contracted Services 55,476                   195,940                    187,269                131,793                8,671                     95.57% Capital  Outlay 394                        24,133                       ‐                              (394)                       24,133                   0.00% TOTAL  EXPENDITURES 62,054                   460,209                    346,843                284,789                113,366                75.37% Transfers  In 40,000                    ‐                                   ‐                              (40,000)                  ‐                              N/A NET TRANSFERS 40,000                    ‐                                   ‐                              (40,000)                  ‐                              N/A CHANGE IN  FUND BALANCE 53,537                   (402,535)                   (278,099)               (331,636)               124,436                N/A BEGINNING FUND BALANCE, Jan 1 677,710                731,245                    731,245                53,535                    ‐                              100.00% ENDING FUND BALANCE, Dec 31 731,247$              328,710$                  453,146$              (278,101)$             124,436$              137.86% CABLE COMMUNICATIONS VARIANCE FAVORABLE (UNFAVORABLE) 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 3,166,434$           3,490,000$              4,387,867$           1,221,433$           897,867$              125.73% Investment Earnings 5,295                      ‐                                  50,794                   45,499                   50,794                   N/A TOTAL  REVENUES 3,171,729             3,490,000                 4,438,661             1,266,932             948,661                127.18% EXPENDITURES: Contracted Services ‐                              1,710,000                 1,500,000             1,500,000             210,000                87.72% TOTAL  EXPENDITURES ‐                              1,710,000                 1,500,000             1,500,000             210,000                87.72% NET TRANSFERS ‐                               ‐                                   ‐                               ‐                               ‐                              N/A CHANGE IN  FUND BALANCE 3,171,729             1,780,000                 2,938,661             (233,068)               1,158,661             165.09% BEGINNING FUND BALANCE, Jan 1  ‐                              3,171,729                 3,171,729             3,171,729              ‐                              100.00% ENDING FUND BALANCE, Dec 31 3,171,729$           4,951,729$              6,110,390$           2,938,661$           1,158,661$           123.40% HOUSING & SUPPORTIVE SERVICES VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 11 of 36   Springbrook Wetlands Fund  The Springbrook Wetlands Fund was established in 2007 for the purpose of providing accounting for the Springbrook Creek  Wetland and Habitat Mitigation Bank project. The proceeds of selling wetlands credits will be used to fund the ongoing  maintenance of the wetland in perpetuity.      Sale of Credits – Increase in the sale of credits is due to a sale of springbrook wetland mitigation credits to Renton School  District in the amount of $230K.    Police Seizure Fund  The Police Seizure Fund was established in the 2nd quarter of 2020 for the purpose of providing transparency in the accounting  for assets seized by Police in accordance with RCW 9A.83.030 and 69.50.505, previously accounted for within the General  Fund. These seizure funds are restricted to use exclusively for the expansion and improvement of controlled substances  related law enforcement activity.  The total fund balance remaining at the end of the year is budgeted in full the following  year.      Contributions – The city does not budget contribution revenue for seizures as amounts are uncertain until cases are  resolved. The increase in contributions from prior year is directly related to an increase in seized property in 2022.     2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Investment Earnings 1,541$                   1,005$                      4,598$                   3,057$                   3,593$                   457.51% Sale of credits 867                        230,300                   230,300                229,433                 ‐                              100.00% TOTAL  REVENUES 2,408                     231,305                   234,898                232,490                3,593                     101.55% EXPENDITURES: Personnel 2,825                     11,000                      6,184                     3,359                     4,816                     56.22% Contracted Services 4,884                     40,000                      8,411                     3,527                     31,589                   21.03% TOTAL  EXPENDITURES 7,709                     51,000                      14,595                   6,886                     36,405                   28.62% NET TRANSFERS ‐                               ‐                                  ‐                               ‐                               ‐                              N/A CHANGE IN  FUND BALANCE (5,301)                    180,305                   220,303                225,604                39,998                   122.18% BEGINNING FUND BALANCE, Jan 1  348,826                234,325                   234,325                (114,501)                ‐                              100.00% ENDING FUND BALANCE, Dec 31 234,325$              414,630$                 454,628$              220,303$              39,998$                109.65% SPRINGBROOK WETLANDS VARIANCE FAVORABLE (UNFAVORABLE) 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Contributions 69,054$                 ‐$                               154,526$              85,472$                154,526$              N/A Investment Earnings 3,679                      ‐                                 5,903                     2,224                     5,903                     N/A TOTAL  REVENUES 72,733                    ‐                                 160,429                87,696                   160,429                N/A EXPENDITURES: Supplies 29,574                   330,969                    ‐                              (29,574)                 330,969                0.00% Contracted Services 97,180                    ‐                                 549                        (96,631)                 (549)                       N/A Capital  Outlay 186,903                 ‐                                 151,035                (35,868)                 (151,035)               N/A TOTAL  EXPENDITURES 313,657                330,969                   151,584                (162,073)               179,385                45.80% Transfers  Out ‐                              (300,556)                  (300,556)               (300,556)                ‐                              N/A NET TRANSFERS ‐                              (300,556)                  (300,556)               300,556                 ‐                              N/A CHANGE IN  FUND BALANCE (240,924)               (631,525)                  (291,711)               550,325                339,814                N/A BEGINNING FUND BALANCE, Jan 1 872,449                631,525                   631,525                (240,924)                ‐                              100.00% ENDING FUND BALANCE, Dec 31 631,525$               ‐$                               339,814$              (291,711)$             339,814$              N/A POLICE SEIZURE VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 12 of 36   Supplies and Capital Outlay – All seizure expenditure budgets are carried forward each year in the supplies category. This  will result in categories like capital outlay being under budget and supplies over budget.    Transfers Out – The increase from prior year is due to a one‐time transfer for purchase of body camera equipment.    Police CSAM Seizure Fund  The Police CSAM Seizure Fund was established in the 2nd quarter of 2020 for the purpose of providing transparency in the  accounting for assets seized by Police in accordance with RCW 9A.88.150, previously accounted for within the General Fund.  These seizure funds are restricted to the exclusive use of enforcing the provisions of chapter 9A.88 RCW, Indecent Exposure‐ Prostitution, or chapter 9.68A RCW, Sexual Exploitation of Children.        Contracted Services – All CSAM seizure expenditure budgets are carried forward each year in the contracted services  category. This will result in categories like capital outlay being over budget and contracted services under budget.    Fire Impact Mitigation Fund  This fund accounts for fire impact fees collected from developers as authorized under RCW 82.02.050‐.110. These fees are  used to offset the cost of system improvements necessary to serve the new development. Impact fees are held in this fund  and subsequently transferred to the debt service fund to support the debt service on fire station 13. Once the debt on the  fire station is repaid, the remaining collections will be disbursed to the Renton Regional Fire Authority for use on qualifying  capital projects.        2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Fines  and penalties 45,386$                 ‐$                               14,524$                (30,862)$               14,524$                N/A Investment Earnings 803                         ‐                                 1,809                     1,006                     1,809                     N/A TOTAL  REVENUES 46,189                    ‐                                 16,333                   (29,856)                 16,333                   N/A EXPENDITURES: Contracted Services 2,000                     174,826                   44                           (1,956)                    (174,782)               0.03% Capital  Outlay 20,000                    ‐                                 18,311                   (1,689)                    18,311                   N/A TOTAL  EXPENDITURES 22,000                   174,826                   18,355                   (3,645)                    156,471                10.50% NET TRANSFERS ‐                               ‐                                  ‐                               ‐                               ‐                              N/A CHANGE IN  FUND BALANCE 24,189                   (174,826)                  (2,022)                    (26,211)                 172,804                N/A BEGINNING FUND BALANCE, Jan 1 150,637                174,826                   174,826                24,189                    ‐                              100.00% ENDING FUND BALANCE, Dec 31 174,826$               ‐$                               172,804$              (2,022)$                 172,804$              N/A POLICE CSAM SEIZURE VARIANCE FAVORABLE (UNFAVORABLE) 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges  for services 195,224$              1,299,000$             1,232,198$           1,036,974$           (66,802)$               94.86% Investment Earnings 11,044                    ‐                                31,890                   20,846                   31,890                   N/A TOTAL  REVENUES 206,268                1,299,000               1,264,088             1,057,820             (34,912)                 97.31% EXPENDITURES: TOTAL  EXPENDITURES ‐                               ‐                                 ‐                               ‐                               ‐                              N/A Transfers  Out (436,987)               (500,634)                 (500,634)               (63,647)                  ‐                              100.00% NET TRANSFERS (436,987)               (500,634)                 (500,634)               63,647                    ‐                              100.00% CHANGE IN  FUND BALANCE (230,719)               798,366                  763,454                994,173                (34,912)                 95.63% BEGINNING FUND BALANCE, Jan 1 2,191,452             1,960,733               1,960,733             (230,719)                ‐                              100.00% ENDING FUND BALANCE, Dec 31 1,960,733$           2,759,099$             2,724,187$           763,454$              (34,912)$               98.73% FIRE IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 13 of 36     Charges for services ‐ The increase in charges for services is primarily due to increased impact fees from construction and  development projects largely due to the Solera project.   This revenue is typically budgeted at a lower amount as  construction activity is not cyclical and can fluctuate based on construction projects within the city.    School District Impact Mitigation  This fund accounts for school district impact fees collected from developers as authorized under RCW 82.02.050‐.110.  These fees are used to help offset the cost of system improvements necessary to service the new development. Impact fees  are held in this fund and subsequently transferred to the Kent, Issaquah, or Renton School District for use on qualifying  capital projects.        Charges for Services & Contracted Services – Charges for services increase from the prior year due to increased impact fees  collected from large one‐time development activities largely due to the Solera project. The variance from budget is due to  adding additional budget in the year end adjustment as the fund was forecasted to end well above the original budget for  2022.        2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges  for services 502,776$              4,595,000$              4,088,842$           3,586,066$           (506,158)$             88.98% Investment Earnings 266                         ‐                                 3,941                     3,675                     3,941                     N/A TOTAL  REVENUES 503,041                4,595,000                4,092,783             3,589,742             (502,217)               89.07% EXPENDITURES: Contracted Services 503,029                4,595,000                4,092,795             3,589,766             502,205                89.07% TOTAL  EXPENDITURES 503,029                4,595,000                4,092,795             3,589,766             502,205                89.07% NET TRANSFERS ‐                               ‐                                  ‐                               ‐                               ‐                              N/A CHANGE IN  FUND BALANCE 12                            ‐                                 (12)                         (24)                         (12)                         N/A BEGINNING FUND BALANCE, Jan 1 ‐                              12                              12                           12                            ‐                              100.00% ENDING FUND BALANCE, Dec 31 12$                        12$                             ‐$                            (12)$                       (12)$                       0.00% SCHOOL  DISTRICT IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 14 of 36   CAPITAL PROJECT FUNDS  Capital project funds are used to account for the acquisition and construction of major capital facilities and equipment. YTD  budgets are not prepared for capital project funds. Project budgets are adopted when funding is secured, and balances are  carried forward each year until they are either 1) fully spent or 2) reallocated to another project through the budget  adjustment process. Detailed explanations will be provided for material differences between prior year and or budgeted  amounts.      Community Services Impact Mitigation Fund   This fund accounts for park impact fees collected from developers as authorized under RCW 82.02.050‐.110. These fees are  used to help offset the cost of system improvements necessary to service the new development. Impact fees are held in this  fund and subsequently transferred to the Municipal Facilities CIP Fund when qualifying capital projects are budgeted.      Charges for Services – The increase in charges for services is primarily due to increased impact fees which correlates directly  with other increases in construction and development.    Transfers In – In 2021 it was decided that the funds should be returned to the funding source fund to have interest accumulate  in the proper fund. This was changed in 2022 to transfer the full funding amounts to the respective capital project.     Transfers Out – The increase over prior year is due to increased funding to capital projects in 2022 including Phillip Arnold,  May Creek South, Cascade Park Playground and Kiwanis Park.        2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges  for services 222,541$              1,386,500$             1,492,501$           1,269,960$           106,001$              107.65% Investment Earnings 12,056                    ‐                                50,090                   38,034                   50,090                   N/A TOTAL  REVENUES 234,597                1,386,500               1,542,591             1,307,994             156,091                111.26% EXPENDITURES: TOTAL  EXPENDITURES ‐                               ‐                                 ‐                               ‐                               ‐                              N/A Transfers  In 1,484,964              ‐                                 ‐                              (1,484,964)             ‐                              N/A Transfers  Out ‐                              (3,380,595)              (3,380,595)            (3,380,595)            (0)                            100.00% NET TRANSFERS 1,484,964             (3,380,595)              (3,380,595)            1,895,631              ‐                              100.00% CHANGE IN FUND BALANCE 1,719,561             (1,994,095)              (1,838,004)            (3,557,565)            156,091                92.17% BEGINNING FUND BALANCE, Jan 1 1,713,833             3,433,393               3,433,393             1,719,560              ‐                              100.00% ENDING FUND BALANCE, Dec 31 3,433,394$           1,439,298$             1,595,389$           (1,838,005)$         156,091$              110.84% COMMUNITY SERVICES IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 15 of 36   Transportation Impact Mitigation Fund  This fund accounts for transportation impact fees collected from developers as authorized under RCW 82.02.050‐.110. These  fees are used to offset the cost of system improvements necessary to serve the new development. Impact fees are held in  this fund and subsequently transferred to the Capital Improvement Fund when qualifying projects are budgeted.        Charges for Services – The increase in charges for services is primarily due to increased impact fees which correlates directly  with other increases in construction and development largely driven by the Solera project.    Investment Earnings – The increase over prior year and budget are a result of higher than anticipated investment returns  due to rising rates and an increased cash balance due to higher than anticipated revenues. Investment earnings are allocated  based on each fund’s cash balance.     Transfers Out – The increase in transfers out from 2021 is due to one time transfers to capital projects including $6.6M for  Rainier Ave Phase 4.       2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges  for services 2,085,910$           8,018,957$              8,505,438$           6,419,528$           486,481$              106.07% Investment Earnings 21,008                   25,739                      130,793                109,785                105,054                508.15% TOTAL  REVENUES 2,106,918             8,044,696                8,636,231             6,529,313             591,535                107.35% EXPENDITURES: TOTAL  EXPENDITURES ‐                               ‐                                  ‐                               ‐                               ‐                              N/A Transfers  Out (102,837)               (6,851,255)               (6,831,255)            (6,728,418)            (20,000)                 99.71% NET TRANSFERS (102,837)               (6,851,255)               (6,831,255)            (6,728,418)            (13,682,510)         99.71% CHANGE IN  FUND BALANCE 2,004,081             1,193,441                1,804,976             (199,105)               611,535                N/A BEGINNING FUND BALANCE, Jan 1 3,154,954             5,159,035                5,159,035             2,004,081              ‐                              100.00% ENDING FUND BALANCE, Dec 31 5,159,035$           6,352,476$              6,964,011$           1,804,976$           611,535$              109.63% TRANSPORTATION IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 16 of 36   REET 1 Fund  This fund was established in the 2nd quarter of 2020 to account for the first quarter percent of real estate excise tax (REET)  levied in accordance with RCW 82.46.010. The tax may be used for eligible capital projects, as defined in RCW.82.46.010(6),  that are included in the capital facilities element of the city’s comprehensive plan. REET 1 tax revenues are held in this fund  and subsequently transferred to the appropriate capital project fund when qualifying projects are budgeted.        Taxes – The decreases in taxes from prior year are due to decreased real estate transactions which were at historically high  levels in 2021. The amount over the annual budget is due to still having a historically higher performance in 2022 than prior  years historical figures and forecasts. As interest rates rise, we may continue to see some impact on real estate excise taxes.     Transfers out – The amount over the prior year relates to a one‐time transfer moving REET funds to the Family First Center  project.     REET 2 Fund  This fund was established in the 2nd quarter of 2020 to account for the second quarter percent of real estate excise tax (REET)  levied in accordance with RCW 82.46.035. The tax may be used for eligible capital projects, as defined in RCW.82.46.035(5),  that are included in the capital facilities element of the city’s comprehensive plan. REET 2 tax revenues are held in this fund  and subsequently transferred to the appropriate capital project fund when qualifying projects are budgeted.        2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 5,043,938$           2,300,000$              4,046,473$           (997,465)$             1,746,473$           175.93% Investment Earnings 21,914                    ‐                                 75,117                   53,203                   75,117                   N/A TOTAL  REVENUES 5,065,852             2,300,000                4,121,590             (944,262)               1,821,590             179.20% EXPENDITURES: TOTAL  EXPENDITURES ‐                               ‐                                  ‐                               ‐                               ‐                              N/A Transfers  In ‐                               ‐                                  ‐                               ‐                               ‐                              N/A Transfers  Out (2,600,004)            (5,579,996)               (5,579,996)            (2,979,991)            (0)                            100.00% NET TRANSFERS (2,600,004)            (5,579,996)               (5,579,996)            2,979,991              ‐                              100.00% CHANGE IN  FUND BALANCE 2,465,848             (3,279,996)               (1,458,406)            (3,924,254)            1,821,590             44.46% BEGINNING FUND BALANCE, Jan 1 2,042,269             4,508,117                4,508,117             2,465,848              ‐                              100.00% ENDING FUND BALANCE, Dec 31 4,508,117$           1,228,121$              3,049,711$           (1,458,406)$         1,821,590$           248.32% REET 1 VARIANCE FAVORABLE (UNFAVORABLE) 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 5,043,938$           2,300,000$              4,046,472$           (997,466)$             1,746,472$           175.93% Investment Earnings 35,873                    ‐                                 121,461                85,588                   121,461                N/A TOTAL  REVENUES 5,079,811             2,300,000                4,167,933             (911,878)               1,867,933             181.21% EXPENDITURES: TOTAL  EXPENDITURES ‐                               ‐                                  ‐                               ‐                               ‐                              N/A Transfers  In 3,177,680              ‐                                  ‐                              (3,177,680)             ‐                              N/A Transfers  Out (2,896,211)            (6,921,118)               (6,921,118)            (4,024,907)             ‐                              100.00% NET TRANSFERS 281,469                (6,921,118)               (6,921,118)            847,227                 ‐                              100.00% CHANGE IN  FUND BALANCE 5,361,280             (4,621,118)               (2,753,185)            (8,114,465)            1,867,933             59.58% BEGINNING FUND BALANCE, Jan 1 3,411,866             8,773,145                8,773,145             5,361,279              ‐                              100.00% ENDING FUND BALANCE, Dec 31 8,773,146$           4,152,027$              6,019,960$           (2,753,186)$         1,867,933$           144.99% REET 2 VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 17 of 36   Taxes – The decreases in taxes from prior year are due to decreased real estate transactions which were at historically high  levels in 2021. As interest rates rise, we may continue to see some impact on real estate excise taxes.     Investment Earnings – The increase over budget is a result of higher than anticipated investment returns due to rising rates  and an increased cash balance due to higher than anticipated revenues. Investment earnings are allocated based on each  fund’s cash balance. Investment earnings are not budgeted in the REET fund as cash balances fluctuate significantly as these  funds are transferred to the capital projects.     Transfers In – The amounts under prior year are due to the prior year having a one‐time transfer in from 316 for unused  REET funding at year end.     Transfers Out – The amount over prior year is due to increased one‐time funding transferred to capital projects in 2022  including transfers to Coulon North Waterwalk ($1.4M), and Kiwanis Park ($1.5M).       Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 18 of 36   Municipal Facilities CIP Fund  This fund accounts for general governmental facility construction, improvement, and renovation; property acquisitions for  parks and city space needs; parks development and equipment; and major maintenance of existing general governmental  assets. Transportation capital improvements are accounted for in a separate fund.         Grants/intergovernmental – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is  budgeted at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires.     Charges for Services – The decrease from prior year is due a one‐time payment‐in‐lieu of $157K for urban forestry. These  payments are made by developers to the city when it is determined that replacing trees removed for a project is not  feasible and they must pay the market value of replacement trees.     Contributions – The increase from prior year is due to large one time contributions from the Custer Fund and Senior Center  Fund for capital projects in 2022. Both the Custer Fund and Senior Center Fund are donated funds held by the Renton  Community Foundation for specified uses and must be requested with an applicable purpose to utilize the funds. Custer  Fund is limited for park improvements and Senior Center Fund is limited for projects benefitting the Renton Senior Center.    Investment Earnings – The increase over prior year and budget is a result of higher than anticipated investment returns due  to rising rates and an increased cash balance due to higher than anticipated revenues. Investment earnings are allocated  based on each fund’s cash balance.     Contracted Services – The increase from prior year is primarily due to architectural design of space planning related to  human services department and equity, housing and human services department. The amount under budget is primarily  due unspent project funds for the Pavilion Remodel $450K.    Capital Outlay – Capital outlay fluctuates greatly with capital project schedules and contractor’s billings. A significant  number of projects began in late 2022, and it is anticipated significant capital outlay will be spent in early 2023. The largest  YTD expenditures include Kiwanis Park ($930K), Park Avenue N Acquisition ($430K), and Parks major maintenance projects  and playground replacements ($406K).   2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants  / intergovernmental 1,334,415$           3,579,906$            591,912$              (742,503)$             (2,987,994)$         16.53% Charges  for services 157,795                 ‐                               56,449                   (101,346)               56,449                   N/A Sale of general  fixed assets 80,000                    ‐                                ‐                              (80,000)                  ‐                              N/A Contributions 11,000                   842,154                 842,454                831,454                300                        100.04% Investment Earnings 83,297                   162,840                 186,230                102,933                23,390                   114.36% TOTAL  REVENUES 1,666,507             4,584,900              1,677,045             10,538                   (2,907,855)            36.58% EXPENDITURES: Personnel 500,735                427,069                 429,623                (71,112)                 (2,554)                    100.60% Contracted Services 157,403                1,068,707              391,770                234,367                676,937                36.66% Capital  Outlay 3,955,052             36,119,447            9,273,108             5,318,056             26,846,339           25.67% TOTAL  EXPENDITURES 4,613,190             37,615,223            10,094,501           5,481,311             27,520,722           26.84% Transfers  In 4,633,641             16,264,057            16,264,057           11,630,416           (0)                            100.00% Transfers  Out (5,160,838)            (50,643)                  (0)                            5,160,838             (50,643)                 N/A NET TRANSFERS (527,198)               16,213,414            16,264,057           6,469,578             50,643                   100.31% CHANGE IN  FUND BALANCE (3,473,881)            (16,816,909)          7,846,601             11,320,482           24,663,510            ‐46.66% BEGINNING FUND BALANCE, Jan 1 20,298,663           16,824,783            16,824,783           (3,473,880)             ‐                              100.00% ENDING FUND BALANCE, Dec 31 16,824,782$        7,874$                    24,671,384$        7,846,602$           24,663,510$        313327.20% MUNICIPAL  FACILITIES CIP VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 19 of 36     Transfers In – The increase over prior year is due to increased funding transferred to capital projects including: $1.4M for  ESCO Phase 3, $3M for City Hall Remodel, $1M for HMAC construction, $2.1M for Phillip Arnold Park, $2.7M for Kiwanis Park,  and $2.8M for Coulon North Water Walk.     Transfers Out ‐ In 2021, it was decided that the funds should be returned to the funding source fund to have interest  accumulate in the proper fund. This was changed in 2022 to transfer the full funding amounts to the respective capital project.     Capital Improvement Fund  This fund accounts for the city’s transportation capital projects.       Grants/Intergovernmental– Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is  budgeted at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires.    Contributions – The amount under budget is due to the anticipated contribution from a WSDOT contractor for the Gateway  Enhancement Project that was not received until 2023.    Contracted Services – The decrease from prior year is primarily due to professional services and other non‐capital work  associated with capital projects that vary based on the project start date and work completed to date. In 2022, the largest  expenditures related to the traffic safety program, street overlay program and bridge inspection and repair program  totalling $220K in expenditures. The amount under 2022 budget is primarily due to timing of project start dates of which  the arterial circulation program saw a budget savings of $132K.     Capital Outlay – Increase in capital outlay expenditures is due to large ongoing projects reaching significant completion  dates and additional capital expenditures being spent. Largest project expenditures include Rainier Avenue Phase 4 ($3.7M)  and Duvall Avenue ($5.8M). The amount under budget is due to project timing on when the construction phase of projects  begins; this makes up the majority of project expenditures. These project budgets are typically carried forward to the next  year.    2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants  / intergovernmental 7,710,276$           43,521,860$        9,772,886$           2,062,610$           (33,748,974)$       22.46% Fines  and penalties 32,706                    ‐                               ‐                              (32,706)                  ‐                              N/A Contributions ‐                              200,000                 ‐                               ‐                              (200,000)               0.00% Investment Earnings 68,537                   38,200                   77,536                   8,999                     39,336                   202.97% TOTAL  REVENUES 7,811,519             43,760,060           9,850,422             2,038,903             (33,909,638)         22.51% EXPENDITURES: Personnel 83,923                   25,000                   42,858                   (41,065)                 (17,858)                 171.43% Supplies 153,323                65,129                   108,006                (45,317)                 (42,877)                 165.83% Contracted Services 511,778                536,978                288,294                (223,484)               248,684                53.69% Capital  Outlay 14,897,642           62,436,745           17,315,447           2,417,805             45,121,298           27.73% Internal Services 56,000                   56,000                   56,000                    ‐                               ‐                              100.00% TOTAL  EXPENDITURES 15,702,666           63,119,852           17,810,605           2,107,939             45,309,247           28.22% Transfers  In 1,858,387             9,734,705             9,714,705             7,856,318             (20,000)                 99.79% Transfers  Out ‐                              (61,400)                 (61,400)                 (61,400)                  ‐                              N/A NET TRANSFERS 1,858,387             9,673,305             9,653,305             7,917,718             (20,000)                 99.79% CHANGE IN  FUND BALANCE (6,032,760)            (9,686,487)            1,693,122             7,725,882             11,379,609           N/A BEGINNING FUND BALANCE, Jan 1 16,792,413           10,868,853           10,868,853           (5,923,560)             ‐                              100.00% ENDING FUND BALANCE, Dec 31 10,868,853$        1,182,366$           12,561,975$        1,693,122$           11,379,609$        1062.44% CAPITAL IMPROVEMENT VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 20 of 36   Transfers In – The increase from prior year is due to one‐time transfers to fund project budgets of which the largest was  $6.6M for Rainier Phase 4 project from transportation impact mitigation fees.     Family First Center Fund  This fund is used to account for the construction of the new Family First Center. Funds accumulated for the construction of  the Family First Center are maintained in the fund balance until such time that Council authorizes their use through the  approval of contracts and additional project budget is established through the budget adjustment process.        Grants/Intergovernmental – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is budgeted  at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires.    Contributions – The increase from prior year relates to receipt of funds from the Renton Community Foundation who  partnered with the city to facilitate the collection of the fundraising needed for construction.  The amount under budget is  due to several contributions not being paid until project completion in 2023.    Capital Outlay – Increase from prior year is due to the project timeline and the majority of construction expenditures being  incurred in 2022.     Transfers In/Transfers Out – The change from prior year relates to a one‐time transfer in from REET and a subsequent  transfer out to general fund to fund restricted project usage for construction.         2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants  / intergovernmental ‐$                            4,509,000$           1,510,000$           1,510,000$           (2,999,000)$         33.49% Contributions ‐                              5,283,000             5,025,344             5,025,344             (257,656)               95.12% Investment Earnings 39,771                    ‐                              79,124                   39,353                   79,124                   N/A TOTAL  REVENUES 39,771                   9,792,000             6,614,468             6,574,697             (3,177,532)            67.55% EXPENDITURES: Contracted Services 82,892                    ‐                              42,466                   (40,426)                 (42,466)                 N/A Capital  Outlay 121,844                14,778,258           12,015,610           11,893,766           2,762,648             81.31% TOTAL  EXPENDITURES 204,736                14,778,258           12,058,076           11,853,340           2,720,182             81.59% Transfers  In 47,196                   3,050,643             3,000,000             2,952,804             (50,643)                 98.34% Transfers  Out ‐                              (3,000,000)            (3,000,033)            (3,000,033)            33                           N/A NET TRANSFERS 47,196                   50,643                   (33)                         5,952,837             (50,676)                  ‐0.07% CHANGE IN  FUND BALANCE (117,769)               (4,935,615)            (5,443,641)            (5,325,872)            (508,026)               N/A BEGINNING FUND BALANCE, Jan 1 8,356,704             8,238,935             8,238,935             (117,769)                ‐                              100.00% ENDING FUND BALANCE, Dec 31 8,238,935$           3,303,320$           2,795,294$           (5,443,641)$         (508,026)$             84.62% FAMILY FIRST CENTER VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 21 of 36   ENTERPRISE FUNDS  Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business  enterprises. YTD budgets are not prepared for Enterprise Funds.     Most Enterprise Funds maintain two separate “management funds”, an operating fund and a capital fund. The funds are  consolidated for budget/reporting purposes. Operating budgets lapse at the end of the year. Project budgets are adopted  when funding is secured, and balances are carried forward each year until they are either 1) fully spent or 2) reallocated to  another project through the budget adjustment process. Detailed explanations will be provided for material differences  between prior year and or budgeted amounts.      Airport Fund  This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and  maintenance of the Renton Municipal Airport.   The lease revenues were previously classified as charges for services but are  not being reflected in their own line item below.          Grants/Intergovernmental – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenses, and reimbursement of related expenses. Grant revenue is budgeted at  100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenses occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires.     2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants  / intergovernmental ‐$                       379,240$                57,529$           57,529$           (321,711)$        15.17% Charges  for services 2,583,590        3,047,910               3,446,190        862,600           398,280           113.07% Fines  and penalties ‐                          ‐                                25                      25                      25                      N/A Interest and other misc 39,156              29,368                    160,853           121,697           131,485           547.72% TOTAL  REVENUES 3,224,911        3,456,518               3,664,597        439,686           208,079           106.02% EXPENSES: Personnel 1,067,346        1,442,365               1,095,538        (28,192)            346,827           75.95% Supplies 42,860              39,471                    115,459           (72,599)            (75,988)            292.52% Contracted Services 1,222,490        1,187,468               728,844           493,646           458,624           61.38% Internal Services 344,095           459,213                  371,749           (27,654)            87,464              80.95% TOTAL  OPERATING EXPENSES 2,676,791        3,128,517               2,311,590        365,201           816,927           73.89% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 548,120           328,001                  1,353,007        804,887           1,025,006        412.50% TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL  OUTLAY 348,644           6,259,960               169,069           179,575           6,090,891        2.70% TRANSFERS  OUT (16,130)             ‐                                 ‐                         (16,130)             ‐                         N/A NET TRANSFERS (16,130)             ‐                                 ‐                         16,130               ‐                         N/A CHANGE IN  FUND BALANCE 183,346           (5,931,959)             1,183,938        1,000,592        7,115,897        N/A BEGINNING FUND BALANCE, Jan 1 7,558,405        7,741,751               7,741,751        183,346            ‐                         100.00% ENDING FUND BALANCE, Dec 31 7,741,751$      1,809,792$            8,925,689$      1,183,938$      7,115,897$      493.19% Operating Reserve 216,784           241,390                  241,390            AVAILABLE FUND BALANCE 7,524,967$      1,568,402$            8,684,299$       VARIANCE AIRPORT Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 22 of 36   Charges for Services – Charges for services is primarily made up of rents, leases and miscellaneous revenue. The increase  over prior year and budget is a result of lease increases, in addition to three new executed leases in 2022.       Interest and Investment Earnings – The increase over prior year and budget is a result of higher than anticipated investment  returns due to rising rates and an increased cash balance due to higher than anticipated revenues. Investment earnings are  allocated based on each fund’s cash balance.     Personnel – The amount under budget is due to two vacant positions in 2022.     Contracted Services – The decrease from the prior year is primarily due to a large one‐time project expenditure in 2021 of  $494K for the Runway Panel Repair Project which did not occur in 2022. The amount under budget is due to capital‐related  contract services. Capital‐related contract services vary each year based on scope of work started and/or completed.    Capital Outlay‐ The decrease from prior year is due to fewer capital projects completed in 2022; many project expenditures  were for non‐capital projects instead such as maintenance and repair. The amount under budget is due several large  projects delayed in 2022, including $2.7M for Airport Office Rehabilitation and $1.3M for Taxiway Alpha Rehabilitation.     Solid Waste Fund  This fund accounts for revenues and expenses for administration and operating of solid waste, recycling, and yard waste  collection services for the city.         Grants/Intergovernmental – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenses, and reimbursement of related expenses. Grant revenue is budgeted at  100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants  / intergovernmental 69,496$           313,136$                34,783$           (34,713)$          (278,353)$        11.11% Charges  for services 20,819,209      23,815,136            23,880,856      3,061,647        65,720              100.28% Interest and other misc 13,637              5,000                       41,326              27,689              36,326              826.52% TOTAL  REVENUES 20,902,342      24,133,272            23,956,965      3,054,623        (176,307)          99.27% EXPENSES: Personnel 518,200           734,328                  447,475           70,725              286,853           60.94% Supplies 2,496                11,900                    9,421                (6,925)               2,479                79.17% Contracted Services 19,499,706      23,734,076            22,582,966      (3,083,260)       1,151,110        95.15% Internal Services 261,166           405,259                  358,155           (96,989)            47,104              88.38% TOTAL  OPERATING EXPENSES 20,281,568      24,885,563            23,398,017      (3,116,449)       1,487,546        94.02% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 620,774           (752,291)                 558,948           (61,826)            1,311,239        N/A TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL  OUTLAY ‐                          ‐                                 ‐                          ‐                          ‐                         N/A TRANSFERS  OUT (94)                     ‐                                 ‐                         (94)                     ‐                         N/A NET TRANSFERS (94)                     ‐                                 ‐                         94                       ‐                         N/A CHANGE IN  FUND BALANCE 620,680           (752,291)                 558,948           (61,732)            1,311,239        N/A BEGINNING FUND BALANCE, Jan 1 2,771,562        3,392,243               3,392,243        620,681            ‐                         100.00% ENDING FUND BALANCE, Dec 31 3,392,242$      2,639,952$            3,951,191$      558,949$         1,311,239$      149.67% Operating Reserve 400,000           400,000                  400,000            AVAILABLE FUND BALANCE 2,992,242$      2,239,952$            3,551,191$       SOLID WASTE VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 23 of 36   reimbursement of grant expenses occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires.     Charges for Services – This account will fluctuate based on when actual payments are received for services.  The increase  from prior year is largely due to an increase in rates from the city’s garbage service provider, Republic Services.     Personnel – The amount under budget is due to a reorganization of solid waste and sustainability which allocated serval  support positions to the newly created sustainability department as opposed to the solid waste fund as they are no longer  supporting solid waste services. After reorganization the solid waste program manager position was unfilled for a significant  portion of the year.    Contracted Services‐ Contracted services will fluctuate with the charges for services as this line item includes payment to the  City’s garbage service provider as well as King County dump fees.  Current year expenditures have increased from prior year  due to increase of prices from the garbage service provider consistent with increases in CPI as well as a timing issue in prior  year which only recorded 11 months of activity. The amount under budget is primarily due to cost for services provided by  our garbage service provider coming in lower than anticipated when the budget was established.    Golf Course Fund  This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and  maintenance of the Maplewood Golf Course.      2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges  for services 2,776,650$      2,170,763$            2,555,063$      (221,587)$        384,300$         117.70% Rents, leases, and misc  fees 401,232           527,600                  493,099           91,867              (34,501)            93.46% Interest and other misc 6,659                (122,192)                 (102,450)          (109,109)          19,742              N/A TOTAL  REVENUES 3,184,541        2,576,171               2,945,712        (238,829)          369,541           114.34% EXPENSES: Personnel 1,543,698        1,777,316               1,660,701        (117,003)          116,615           93.44% Supplies 366,441           321,704                  367,210           (769)                  (45,506)            114.15% Contracted Services 151,079           157,250                  160,128           (9,049)               (2,878)               101.83% Internal Services 364,509           460,660                  494,078           (129,569)          (33,418)            107.25% TOTAL  OPERATING EXPENSES 2,425,727        2,716,930               2,682,117        (256,390)          34,813              98.72% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 758,814           (140,759)                 263,595           (495,219)          404,354           N/A DEBT SERVICE: Principal ‐                         36,774                    36,774              (36,774)             ‐                         100.00% Interest ‐                         1,740                       1,740                (1,740)                ‐                         100.00% TOTAL  DEBT SERVICE ‐                         38,514                    38,514              (38,514)             ‐                         100.00% CAPITAL OUTLAY 12,662              627,410                  418,513           (405,851)          208,897           66.70% TRANSFERS  IN 68,100              852,661                  852,661           784,561            ‐                         100.00% TRANSFERS  OUT (68,100)            (272,200)                 (272,200)          204,100            ‐                         N/A NET TRANSFERS ‐                         580,461                  580,461           580,461            ‐                         100.00% CHANGE IN  FUND BALANCE 746,152           (226,222)                 387,029           (359,123)          613,251           N/A BEGINNING FUND BALANCE, Jan 1 476,746           1,222,897               1,222,897        746,151            ‐                         100.00% ENDING FUND BALANCE, Dec 31 1,222,898$      996,675$                1,609,926$      387,028$         613,251$         161.53% Operating Reserve 641,500           746,233                  746,233            AVAILABLE FUND BALANCE 581,398$         250,442$                863,693$          GOLF COURSE VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 24 of 36   Charges for Services & Interest and Other Misc. – After an internal audit, it was determined the golf course is subject to the  city’s admission tax, which is collected from the consumer at time of purchase.  An adjustment for taxes due for years 2017‐ 2020 were remitted to the general fund in 2022, along with the associated penalties and interest on the unpaid taxes.   Current year reflects the accounting adjustment for this prior period adjustment.      Personnel – The increase from prior year is due to one vacant position which was filled in 2022. The amount under budget  is primarily due to lower than anticipated benefit costs due to variable participation levels in city‐provided benefits for  healthcare coverage.    Internal Services – The increase from prior year is due to an increased use of internal services primarily due to prior year  decreased costs charged to other departments. Internal service funds did not expend the majority of their anticipated  budgets in 2021.     Capital Outlay – The increase from prior year is due multiple large projects taking place including golf course netting  replacement, golf cart fleet replacement and procurement of various capital equipment. The amount under budget is due  to projects not being completed in 2022; these project budgets will be carried forward to 2023.     Transfers In – The increase from prior year is due to the admission tax amount repaid to the golf course from the general  fund to offset the 2017‐current costs associated with the tax.    Transfers Out – The increase from prior year is due to a transfer from the golf course operating fund to the golf course  capital fund to fund capital project budgets for 2022.                                                                      Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 25 of 36   Water Utility Fund  This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and  maintenance of the city’s water utility.      Charges for services – The amount over budget is due to higher than anticipated collections in 2022. The water usage was  slightly less than prior year but higher rates on the usage drove billing and collections amounts to increase from prior year.     Rents, Leases, and Misc. Fees – The amount over the annual budget is due to increased rent activity, including the execution  of at least three new leases in 2022.    Interest and Other Misc. – Increase over prior year is due to increased system development charges and increased special  assessment district charges. The amount over the annual budget is primarily due to an increase in investment interest in 2022  due to higher than anticipated returns on our investments.     Personnel – The amount below prior year and budgeted amount is due to having five vacant positions open in 2022.     Supplies – The amount over prior year and annual budget is primarily due to an increase in water chemical costs and office  and operating supplies.     2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges  for services 18,756,458$   18,449,435$          18,825,203$   68,745$           375,768$         102.04% Rents, leases, and misc  fees 202,333           136,591                  259,955           57,622              123,364           190.32% Interest and other misc 567,000           875,550                  1,526,952        959,952           651,402           174.40% TOTAL  REVENUES 19,525,791      20,933,613            20,612,110      1,086,319        (321,503)          98.46% EXPENSES: Personnel 4,565,219        5,114,807               4,376,591        188,628           738,216           85.57% Supplies 865,824           885,876                  1,134,189        (268,365)          (248,313)          128.03% Contracted Services 3,254,836        3,975,102               3,420,049        (165,213)          555,053           86.04% Internal Services 2,220,078        2,829,630               2,801,543        (581,465)          28,087              99.01% TOTAL  OPERATING EXPENSES 10,905,957      12,805,415            11,732,372      (826,415)          1,073,043        91.62% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 8,619,834        8,128,198               8,879,738        259,904           751,540           109.25% DEBT SERVICE: Principal 1,563,068        1,556,117               1,556,117        6,951                 ‐                         100.00% Interest 217,352           190,874                  190,408           26,944              466                   99.76% TOTAL  DEBT SERVICE 1,780,420        1,746,991               1,746,525        33,895              466                   99.97% CAPITAL  OUTLAY 3,759,249        36,863,818            2,741,136        1,018,113        34,122,682      7.44% TRANSFERS  OUT (6,614)               (40,138)                   (33,868)            27,254              (6,270)               N/A NET TRANSFERS (6,614)               (40,138)                   (33,868)            (27,254)            6,270                N/A CHANGE IN  FUND BALANCE 3,073,551        (30,522,749)           4,358,209        1,284,658        34,880,958      N/A BEGINNING FUND BALANCE, Jan 1 40,776,314      43,849,867            43,849,867      3,073,553         ‐                         100.00% ENDING FUND BALANCE, Dec 31 43,849,865$   13,327,118$          48,208,076$   4,358,211$      34,880,958$   361.73% Restricted for  Debt Service 1,394,050        1,394,050               1,394,050         Operating Reserve 1,624,606        1,712,156               1,712,156         AVAILABLE FUND BALANCE 40,831,209$   10,220,912$          45,101,870$    WATER UTILITY VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 26 of 36   Contracted services – The increase in contracted services expenses is primarily due to increased electricity expenses from  prior year. The amount under budget is due less than anticipated professional services performed as well as less than  anticipated payments to other funds for labor performed in 2022.     Internal Services – Increase from prior year is due to increased use of internal services in 2021 which is allocated out to the  departments. This amount is charged out based upon the established budget and will be trued up to actual expenditures at  year end.    Capital Outlay – The decrease from prior year is primarily due to lower project expenses in current year for the following:  Downtown Water Main Replacement project, NE 16th St and Jefferson Ave project, and Kennydale 320 Reservoir project. The  amount under budget is due to projects not yet started or just started which have not had significant expenses in 2022. The  project budgets will be carried forward to the following year.    Wastewater Utility Fund  This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and  maintenance of the city’s wastewater utility.        Charges for Services – Wastewater charges increased from the prior year primarily due to an increase in usage.    2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses  and permits 85,775$           62,422$                  91,346$           5,571$              28,924$           146.34% Charges  for services 11,328,259      11,671,891            11,704,629      376,370           32,738              100.28% Fines  and penalties 11,789               ‐                                61                      (11,728)            61                      N/A Interest and other misc 747,027           680,250                  968,581           221,554           288,331           142.39% TOTAL  REVENUES 12,172,850      12,414,563            12,764,617      591,767           350,054           102.82% EXPENSES: Personnel 2,295,742        2,945,540               2,354,721        (58,979)            590,819           79.94% Supplies 108,182           73,842                    75,609              32,573              (1,767)               102.39% Contracted Services 2,763,500        2,697,313               2,353,794        409,706           343,519           87.26% Internal Services 1,541,589        1,990,452               1,896,536        (354,947)          93,916              95.28% TOTAL  OPERATING EXPENSES 6,709,013        7,707,147               6,680,660        28,353              1,026,487        86.68% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 5,463,837        4,707,416               6,083,957        620,120           1,376,541        129.24% DEBT SERVICE: Principal 612,850           624,400                  624,400           (11,550)             ‐                         100.00% Interest 97,843              85,491                    85,252              12,591              239                   99.72% TOTAL  DEBT SERVICE 710,693           709,891                  709,652           1,041                239                   99.97% CAPITAL OUTLAY 7,954,437        17,687,727            3,353,224        4,601,213        14,334,503      18.96% TRANSFERS  IN ‐                         48,400                    48,400              48,400               ‐                         100.00% TRANSFERS  OUT (6,239)                ‐                                (7,297)               1,058                7,297                N/A NET TRANSFERS (6,239)               48,400                    41,103              47,342              (7,297)               84.92% CHANGE IN  FUND BALANCE (3,207,532)       (13,641,802)           2,062,184        5,269,716        15,703,986      N/A BEGINNING FUND BALANCE, Jan 1 23,996,217      20,788,687            20,788,687      (3,207,530)        ‐                         100.00% ENDING FUND BALANCE, Dec 31 20,788,685$   7,146,885$            22,850,871$   2,062,186$      15,703,986$   319.73% Restricted for Debt Service 661,227           661,227                  661,227            Operating Reserve 913,756           962,039                  962,039            AVAILABLE FUND BALANCE 19,213,702$   5,523,619$            21,227,605$    WASTEWATER UTILITY VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 27 of 36   Interest and Investment Earnings – The increase over prior year and budget is a result of higher than anticipated investment  returns due to rising rates and an increased cash balance due to lower than anticipated capital expenditures. Investment  earnings are allocated based on each fund’s cash balance.     Personnel – The amount under the annual budget is due to five vacant positions in 2022.    Contracted Services – The amount under budget and prior year is primarily due to: 1) prior year large one‐time professional  service contract for Kennydale Lakeline Sewer Upgrade, 2) budget savings from Wastewater Master Plan not spent in 2022  (124K).    Internal Services – Increase from prior year is due to increased use of internal services in 2021 which is allocated out to the  departments. This amount is charged out based upon the established budget and will be trued up to actual expenditures at  year end.    Capital Outlay – The decrease from prior year is primarily due to the majority of project expenses for Downtown Sewer  Replacement and Rehabilitation project that occurred in 2021. The amount under budget is due to projects not yet started  or just started which have not had significant expenses in 2022. The project budgets will be carried forward to the following  year.    King County Metro Fund   This fund accounts for revenues and expenses for operation of the city’s wastewater utility, as it relates to charges for and  payment to King County Metro for water treatment services.        Charges for Services – Increase from prior year is largely due the increase in King County fees which is passed through to  wastewater customers.     Contracted Services – Decrease from prior year and budget is due to January 2022 payment to King County Metro paid in  December 2021; current year figures will only reflect 11 months of cost due to this difference in timing of payment.  2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges  for services 17,881,960$   18,495,877$          19,394,800$   1,512,840$      898,923$         104.86% Interest and other misc 22,890               ‐                                65,460              42,570              65,460              N/A TOTAL  REVENUES 17,904,850      18,495,877            19,460,260      1,555,410        964,383           105.21% EXPENSES: Contracted Services 18,870,588      18,495,877            16,987,130      1,883,458        1,508,747        91.84% TOTAL  OPERATING EXPENSES 18,870,588      18,495,877            16,987,130      1,883,458        1,508,747        91.84% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS (965,738)           ‐                                2,473,130        3,438,868        2,473,130        N/A TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL  OUTLAY ‐                          ‐                                 ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                          ‐                                 ‐                          ‐                          ‐                         N/A CHANGE IN  FUND BALANCE (965,738)           ‐                                2,473,130        3,438,868        2,473,130        N/A BEGINNING FUND BALANCE, Jan 1 4,729,749        3,764,012               3,764,012        (965,737)           ‐                         100.00% ENDING FUND BALANCE, Dec 31 3,764,011$      3,764,012$            6,237,142$      2,473,131$      2,473,130$      165.70% Operating Reserve 380,000           380,000                  380,000            AVAILABLE FUND BALANCE 3,384,011$      3,384,012$            5,857,142$       KING COUNTY METRO VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 28 of 36   Surface Water Utility Fund   This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and  maintenance of the city’s surface water utility.        Grants/Intergovernmental – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenses, and reimbursement of related expenses. Grant revenue is budgeted at  100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to reimbursement  of grant expenses occurring in a future year. Any grant revenue not received in award year is carried forward each year until  the grant funds are fully received or the grant agreement expires.     Interest and Other Misc. – Increase over budget is a result of higher than anticipated investment returns due to rising rates  and an increased cash balance due to lower than anticipated capital expenditures. Investment earnings are allocated based  on each fund’s cash balance.    Personnel – Decrease from prior year and amount under budget is due to five vacant positions in 2022.     2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses  and permits 28,500$           50,962$                  34,584$           6,084$              (16,378)$          67.86% Grants  / intergovernmental 936,498           14,047,565            1,442,131        505,633           (12,605,434)    10.27% Charges  for  services 12,592,595      12,658,636            12,661,371      68,776              2,735                100.02% Interest and other misc 1,603,032        1,542,203               1,644,383        41,351              102,180           106.63% TOTAL  REVENUES 15,160,625      28,299,366            15,782,469      621,844           (12,516,897)    55.77% EXPENSES: Personnel 3,861,860        4,177,515               3,761,823        100,037           415,692           90.05% Supplies 133,904           179,267                  102,319           31,585              76,948              57.08% Contracted Services 2,497,751        4,540,475               2,074,587        423,164           2,465,888        45.69% Internal Services 2,446,763        2,907,790               2,554,537        (107,774)          353,253           87.85% TOTAL  OPERATING EXPENSES 8,940,278        11,805,047            8,493,266        447,012           3,311,781        71.95% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 6,220,347        16,494,319            7,289,203        1,068,856        (9,205,116)       44.19% DEBT SERVICE: Principal 499,900           510,000                  510,000           (10,100)             ‐                         100.00% Interest 111,349           100,842                  100,649           10,700              193                   99.81% TOTAL  DEBT SERVICE 611,249           610,842                  610,649           600                   193                   99.97% CAPITAL OUTLAY 6,373,606        25,104,106            3,810,048        2,563,558        21,294,058      15.18% Transfers  In 90,000              118,033                  118,033           28,033               ‐                         100.00% Transfers  Out (28,919)            (120,478)                 (140,480)          111,561           20,002              N/A NET TRANSFERS 61,081              (2,445)                     (22,447)            (83,528)            (20,002)            N/A CHANGE IN  FUND BALANCE (703,427)          (9,223,074)             2,846,059        3,549,486        12,069,133      N/A BEGINNING FUND BALANCE, Jan 1 21,610,356      21,682,758            21,682,758      72,402               ‐                         100.00% Prior Period Adjustment 775,836           3,785,938               3,785,938        3,010,102         ‐                         100.00% BEGINNING FUND BALANCE, Jan 1 ‐ restated 22,386,192      25,468,696            25,468,696      3,082,504         ‐                         100.00% ENDING FUND BALANCE, Dec 31 21,682,765$   16,245,622$          28,314,755$   6,631,990$      12,069,133$   174.29% Restricted for Debt Service 754,868           754,868                  754,868            Operating Reserve 1,109,340        1,204,613               1,204,613         AVAILABLE FUND BALANCE 19,818,557$   14,286,141$          26,355,274$    SURFACE WATER UTILITY VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 29 of 36   Contracted Services – Decrease from prior year is largely due to one‐time expenses for professional services contracts  related to capital projects. The amount under budget is primarily due to unspent budget on the Cedar River Gravel Removal  project in 2022 ($2.4M).    Internal Services – Increase from prior year is due to increased use of internal services in 2021 which is allocated out to the  departments. This amount is charged out based upon the established budget and will be trued up to actual expenditures at  year end.    Capital Outlay – Decrease from prior year primarily relates to the Downtown Storm System Improvement project which  had most of its work completed in 2021. The amount under budget is due to projects not yet started or just started which  have not had significant expenses in 2022. The project budgets will be carried forward to the following year.     Transfers Out – Increase from prior year is due a one‐time transfer from the surface water operating fund to the surface  water capital fund for soft capital reimbursements.  Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 30 of 36   INTERNAL SERVICE FUNDS  Internal service funds are used to account for the goods and services furnished by one city department to other city  departments on a cost reimbursement basis. YTD budgets are not prepared for Internal Service Funds.    Equipment Rental Fund  This fund accounts for revenues and expenses for administration, purchase, and maintenance of the city’s vehicle and  equipment Fleet services. Departments pay in monthly amounts for maintenance and operations. Replacement reserves are  paid monthly over the estimated useful lives of each individual vehicle or piece of equipment. These reserves are accumulated  in fund balance so that they are available to fund the replacement of the vehicle/equipment when the time comes.   Interdepartmental services – The decrease from prior year is largely due a significant number of vehicles fully funded in 2021;  therefore, decreasing the charges out to departments starting in 2022 for capital recovery. This will continue to fluctuate as  older vehicles are replaced. The amount over budget is due to direct charges to departments for repairs and fuel usage which  fluctuates each year and month based on usage.    Interest and Other Misc. – The amount over budget is a result of higher than anticipated investment returns due to rising  rates and an increased cash balance due to lower than anticipated capital expenditures. Investment earnings are allocated  based on each fund’s cash balance.    Personnel – The amount under budget is primarily due to one vacant position in 2022.     Supplies – Increase from prior year primarily due to fuel expenses which are heavily influenced by current market prices of  fuel and are significantly higher than prior year.   2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges  for services 81,203$            ‐$                             94,536$           13,333$           94,536$           N/A Interdepartmental  services 6,574,687        6,302,445               6,436,174        (138,513)          133,729           102.12% Interest and other misc 214,760           12,000                    166,480           (48,280)            154,480           1387.33% TOTAL  REVENUES 6,870,650        6,314,445               6,697,190        (173,460)          382,745           106.06% EXPENSES: Personnel 1,053,073        1,300,414               1,083,973        (30,900)            216,441           83.36% Supplies 1,350,838        1,691,153               1,670,826        (319,988)          20,327              98.80% Contracted Services 289,223           133,166                  379,775           (90,552)            (246,609)          285.19% Internal Services 30,338              53,755                    41,193              (10,855)            12,562              76.63% TOTAL  OPERATING EXPENSES 2,723,472        3,178,488               3,175,767        (452,295)          2,721                99.91% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 4,147,178        3,135,957               3,521,423        (625,755)          385,466           112.29% TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY 398,268           4,085,929               522,094           (123,826)          3,563,835        12.78% TRANSFERS  IN ‐                         130,671                  153,137           153,137           22,466              117.19% TRANSFERS  OUT ‐                          ‐                                 ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                         130,671                  153,137           153,137           22,466              117.19% CHANGE IN  FUND BALANCE 3,748,910        (819,301)                 3,152,466        (596,444)          3,971,767        N/A BEGINNING FUND BALANCE, Jan 1 6,376,259        10,125,169            10,125,169      3,748,910         ‐                         100.00% ENDING FUND BALANCE, Dec 31 10,125,169$   9,305,868$            13,277,635$   3,152,466$      3,971,767$      142.68% Operating Reserves 9,305,868$            9,305,868$       AVAILABLE FUND BALANCE 10,125,169$    ‐$                             3,971,767$       EQUIPMENT RENTAL VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 31 of 36   Contracted Services – Increase over budget is due to large one‐time expenses for repair and maintenance costs offset by  amounts over budget for interdepartmental services and other charges for services as they typically relate to a direct repair  and maintenance cost billed to departments or external customers.     Capital Outlay – The increase from prior year is due to an increase in vehicle purchases due to major supply chain issues in  prior year that delayed purchases and at times made it challenging to order the specific vehicles needed. The amount under  budget is due to not replacing all budgeted vehicles. Vehicle replacement varies each year based on the condition and usage  of vehicles as well as the availability of suitable replacement vehicles to purchase.     Transfers In – The increase from last year is due to one‐time transfers to equipment rental fund from other departments to  cover the full replacement cost of the equipment being purchased. The equipment rental fund recovers a set replacement  amount each quarter based on the original purchase price of the equipment; at times the actual replacement cost will exceed  the amounts collected over the useful life of the vehicle which requires a transfer in from the department to the equipment  rental fund to purchase the new equipment.    Insurance Fund  This fund accounts for the administration and operation of the city’s self‐insurance programs for property losses, liability,  workers’ compensation, and unemployment compensation. Expenses are paid by the Insurance Fund and rates are charged  to departments based on their claims history over the preceding five years and coverage requirements.      Interdepartmental Services – The increase over prior year is due to additional charge outs to city departments for additional  anticipated claims costs and increased insurance premiums.    Interest and Other Misc. – The amount over budget is a result of higher than anticipated investment returns due to rising  rates and an increased cash balance due to lower than anticipated capital expenditures. Investment earnings are allocated  based on each fund’s cash balance.  2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental  services 3,177,720$      4,234,653$            4,689,399$      1,511,679$      454,746$         110.74% Interest and other misc 337,030           22,000                    347,616           10,586              325,616           1580.07% TOTAL  REVENUES 3,514,750        4,256,653               5,037,015        1,522,265        780,362           118.33% EXPENSES: Personnel 1,095,734        1,621,091               1,166,139        (70,405)            454,952           71.94% Supplies 536                   6,956                       68                      468                   6,888                0.98% Contracted Services 2,731,282        2,956,973               3,145,677        (414,395)          (188,704)          106.38% TOTAL  OPERATING EXPENSES 3,827,552        4,585,020               4,311,884        (484,332)          273,136           94.04% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS (312,802)          (328,367)                 725,131           1,037,933        1,053,498        N/A TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY ‐                          ‐                                 ‐                          ‐                          ‐                         N/A Transfers  In 1,000,000        2,052,772               2,052,772        1,052,772         ‐                         100.00% Transfers  Out (52,868)            (52,868)                   (51,420)            (1,448)               (1,448)               N/A NET TRANSFERS 947,132           1,999,904               2,001,352        1,054,220        1,448                100.07% CHANGE IN  FUND BALANCE 634,330           1,671,537               2,726,483        2,092,153        1,054,946        163.11% BEGINNING FUND BALANCE, Jan 1 19,860,208      20,494,538            20,494,538      634,330            ‐                         100.00% ENDING FUND BALANCE, Dec 31 20,494,538$   22,166,075$          23,221,021$   2,726,483$      1,054,946$      104.76% Operating Reserves 13,952,413      20,906,374            20,906,374       AVAILABLE FUND BALANCE 6,542,125$      1,259,701$            2,314,647$       INSURANCE VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 32 of 36     Personnel – Decrease from prior year is primarily related to a decrease in unemployment and workers compensation claims  partially offset by salary increases from the addition of one position and cost of living adjustments in 2022.     Contracted Services – Increase from prior year primarily due to increased insurance premium costs and claims payments.    Transfers In – The increase from prior year is due to the need to increase the reserve transfer to be in compliance with the  city’s stabilization policy. In 2021, the transfer required was $1M and in 2022 that increased to $1.9M.    Information Technology Fund  This fund accounts for the administration, purchase, and operation of the city’s information technology systems, including  computer hardware and software, network servers and infrastructure, phone systems, and cell phones. Expenses are paid by  the Information Technology Fund and rates are charged to departments based on use.       Licenses and Permits ‐ The increase in licenses and permits from prior year and budget is primarily due to increased  permitting activity.   A technology fee charge is collected from permit applications.     Interdepartmental Services – The increase over prior year is primarily related to an increase in charges to departments for  the replacement reserve of the city’s ERP system which was budgeted in 2022.     Personnel – The amount of personnel costs over prior year is primarily due to open positions in 2021; the positions that had  been held vacant due to the pandemic have been filled to support the increase in staff back at the office and the reopening  of City Hall as well as a cost‐of‐living adjustment in 2022.     Supplies & Contracted Services ‐ The amount over prior year largely relates to the purchase of police body cameras.  The  amount under budget relates to the unspent balance of the body cameras and funding for remote work IT equipment.    2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses  and permits 185,611$         150,000$                257,614$         72,003$           107,614$         171.74% Interdepartmental  services 4,714,050        9,128,746               9,125,435        4,411,385        (3,311)               99.96% Interest and other misc 44,958              7,000                       63,142              18,184              56,142              902.03% TOTAL  REVENUES 4,944,619        9,285,746               9,446,191        4,501,572        160,445           101.73% EXPENSES: Personnel 2,819,903        3,648,251               3,147,715        (327,812)          500,536           86.28% Supplies 537,837           2,780,580               1,988,765        (1,450,928)       791,815           71.52% Contracted Services 2,273,316        3,148,077               3,068,444        (795,128)          79,633              97.47% TOTAL  OPERATING EXPENSES 5,631,056        9,576,908               8,204,924        (2,573,868)       1,371,984        85.67% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS (686,437)          (291,162)                 1,241,267        1,927,704        1,532,429        N/A TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL  OUTLAY 237,601           4,836,797               283,120           (45,519)            4,553,677        5.85% TRANSFERS  IN 643,551           4,384,113               4,409,742        3,766,191        25,629              100.58% NET TRANSFERS 637,551           4,384,113               4,409,742        3,772,191        25,629              100.58% CHANGE IN  FUND BALANCE (286,487)          (743,846)                 5,367,889        5,654,376        6,111,735        N/A BEGINNING FUND BALANCE, Jan 1 3,939,941        3,653,455               3,653,455        (286,486)           ‐                         100.00% ENDING FUND BALANCE, Dec 31 3,653,454$      2,909,609$            9,021,344$      5,367,890$      6,111,735$      310.05% Operating Reserves 2,068,477$            2,068,477$       AVAILABLE FUND BALANCE 3,653,454$      841,132$                1,584,978$       INFORMATION  TECHNOLOGY VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 33 of 36     Capital Outlay –The amount under budget is due to several IT projects that have not yet started or were in initial phases in  2022 including Eden Replacement, Downtown and Renton Community Center Wi‐Fi, and facility audio video upgrade projects.     Transfers In ‐ The increase from prior year is due to one‐time transfers for IT capital projects including Eden Replacement,  Downtown and Renton Community Center Wi‐Fi, police body cameras, and facility audio video upgrade projects    Facilities Fund  This fund accounts for the administration, maintenance, and operation of city‐owned facilities. Expenses are paid by the  Facilities Fund and rates are charged to departments based on square footage.       Interdepartmental Services – The increase over prior year is due to increased expenses in facilities charged through an  internal service fund charge to each department.     Personnel ‐ The amount over prior year is primarily due to open positions in 2021; the positions that had been held vacant  due to the pandemic have been filled to support the increase in staff back at the office and the reopening of City Hall as well  as a cost‐of‐living adjustment in 2022. The amount under budget is due to five vacant positions.    Supplies and Contracted Services ‐ The increase over prior year and budget largely relates to the increased need to support  staff back at City Hall and other remote locations. As city locations are utilized more frequently, the costs for electricity and  other consumption‐based services like facilities supplies are expected to increase.  There was also an increased need in  repairs and maintenance on city facilities that had been under utilized in the prior two years.     Transfers In – The decrease from prior year is due to a one‐time transfer for the citywide security system upgrade project.   2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental  services 5,072,999$      6,649,970$            6,593,419$      1,520,420$      (56,551)$          99.15% Interest and other misc 5,466                4,000                       9,403                3,937                5,403                235.08% TOTAL  REVENUES 5,078,465        6,653,970               6,602,822        1,524,357        (51,148)            99.23% EXPENSES: Personnel 2,991,378        4,224,986               3,432,461        (441,083)          792,525           81.24% Supplies 586,829           662,491                  905,501           (318,672)          (243,010)          136.68% Contracted Services 1,404,851        1,805,887               1,982,579        (577,728)          (176,692)          109.78% Internal Services 129,486           153,770                  141,208           (11,722)            12,562              91.83% TOTAL  OPERATING EXPENSES 5,112,544        6,847,134               6,461,749        (1,349,205)       385,385           94.37% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS (34,079)            (193,164)                 141,073           175,152           334,237           N/A TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY 46,092              11,045                    11,045              35,047               ‐                         100.00% Transfers  In 361,194           22,705                    22,705              (338,489)           ‐                         100.00% NET TRANSFERS 361,194           22,705                    22,705              (338,489)           ‐                         100.00% CHANGE IN  FUND BALANCE 281,023           (181,504)                 152,733           (128,290)          334,237           N/A BEGINNING FUND BALANCE, Jan 1 504,167           785,189                  785,189           281,022            ‐                         100.00% ENDING FUND BALANCE, Dec 31 785,190$         603,685$                937,922$         152,732$         334,237$         155.37% FACILITIES VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 34 of 36   Communications Fund  This fund accounts for community and intergovernmental relations and communications with the public. Communications is  a major activity of the city’s administration responsible for external communications, employee communications, media  relations, and coordination of all departments in producing the city’s website. Expenses are paid by the Communications  Fund and rates are charged to departments based on usage.        Interdepartmental services – The increase over prior year primarily relates to an increase in budgeted charges to each  department due to increased budgets for expenditure items including personnel, which received a cost‐of‐living adjustment  in 2022.     Personnel – The increase over prior year is due to a portion of the executive services administrative secretary and Deputy  CAO charged to communications starting in 2022.  The amount under budget is due to the communications director  position vacancy for the majority of 2022.     Contracted Services – The increase from prior year is due to multiple one‐time expenses including a consultant contract  ($36K) due to communications director vacancy, development of a strategic plan ($25K), and a social media analytics tool  ($26K).                       2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental  services 827,218$         1,373,535$            1,373,535$      546,317$          ‐$                       100.00% Interest and other misc 19,277              1,000                       1,778                (17,499)            778                   177.80% TOTAL  REVENUES 846,495           1,377,535               1,378,313        531,818           778                   100.06% EXPENSES: Personnel 661,597           946,412                  757,883           (96,286)            188,529           80.08% Supplies 28,045              71,927                    47,485              (19,440)            24,442              66.02% Contracted Services 164,960           364,512                  283,704           (118,744)          80,808              77.83% Internal Services 2,000                2,034                       2,034                (34)                     ‐                         100.00% TOTAL  OPERATING EXPENSES 856,602           1,384,885               1,091,106        (234,504)          293,779           78.79% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS (10,107)            (7,350)                     287,207           297,314           294,557           N/A TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY ‐                          ‐                                 ‐                          ‐                          ‐                         N/A Transfers  Out ‐                          ‐                                 ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                          ‐                                 ‐                          ‐                          ‐                         N/A CHANGE IN  FUND BALANCE (10,107)            (7,350)                     287,207           297,314           294,557           N/A BEGINNING FUND BALANCE, Jan 1 151,624           141,517                  141,517           (10,107)             ‐                         100.00% ENDING FUND BALANCE, Dec 31 141,517$         134,167$                428,724$         287,207$         294,557$         319.55% COMMUNICATIONS VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 35 of 36   Health Insurance Fund  This fund accounts for the city’s self‐insured health insurance program. Expenses/claims are paid by the Health Insurance  Fund and rates are charged to employees and departments based on annual premiums determined by the city’s Employee  Health Plan Board for each type of coverage elected by the employee; paid semi‐monthly in conjunction with each payroll.         Premiums – Increase from prior year is due to an increase in the number of staff and an increase in the premium rates  charged in 2022.     Interest and Other Misc. – Increase from prior year is largely due to investment interest income which has seen a  significant boost in 2022 as interest rates rise.    Medical/Dental Claims – Increase from prior year is largely due to an increase in long‐term care costs and an increase in  claim expenses for retiree medical services.                        2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Premiums 12,300,979$   13,417,329$            11,589,186$   (711,793)$        (1,828,143)$    86.37% Interest and other misc 349,691           149,488                    587,742           238,051           438,254           393.17% TOTAL  REVENUES 12,650,670      13,566,817               12,176,928      (473,742)          (1,389,889)       89.76% EXPENSES: Personnel 306,053           375,034                    341,178           (35,125)            33,856              90.97% Medical/Dental  Claims 10,956,891      12,752,837               11,014,926      (58,035)            1,737,911        86.37% Supplies 1,669                7,500                         6,711                (5,042)               789                   89.48% Contracted Services 438,971           514,456                    468,985           (30,014)            45,471              91.16% Internal Services 65,379              93,669                       64,621              758                   29,048              68.99% TOTAL  OPERATING EXPENSES 11,768,963      13,743,496               11,896,421      (127,458)          1,847,075        86.56% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 881,707           (176,679)                   280,507           (601,200)          457,186           N/A TOTAL  DEBT SERVICE ‐                          ‐                                   ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY ‐                          ‐                                   ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                          ‐                                   ‐                          ‐                          ‐                         N/A CHANGE IN  FUND BALANCE 881,707           (176,679)                   280,507           (601,200)          457,186           N/A BEGINNING FUND BALANCE, Jan 1 5,773,429        6,655,137                 6,655,137        881,708            ‐                         100.00% ENDING FUND BALANCE, Dec 31 6,655,136$      6,478,458$               6,935,644$      280,508$         457,186$         107.06% Insurance Reserves 3,774,249        4,123,049                 4,123,049         AVAILABLE FUND BALANCE 2,880,887$      2,355,409$               2,812,595$       HEALTH INSURANCE VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2022  Page 36 of 36   Retiree Healthcare Fund  This fund accounts for the city’s self‐insured health insurance program for LEOFF1 retirees. Benefits include medical,  prescription drug, Medicare Part B premiums, long‐term care, and vision coverage for retired law enforcement officers and  firefighters that were employed by the city prior to October 1, 1977. Dependent spouses and children are not covered. 100%  of premiums are provided by the General Fund with annual contributions determined after review of a report prepared by  actuaries.         Interest and Other Misc. – Increase from prior year is largely due to investment interest income which has seen a  significant boost in 2022 as interest rates rise.    Medical/Dental Claims – Increase from prior year is largely due to an increase in long‐term care costs ($74K) and an increase  in claim expenses for retiree medical services.                  CONTACT INFORMATION  This report is prepared by the Finance Department. For additional financial information, please also review our website:  http://www.rentonwa.gov/.  For any questions about the report, please feel free to contact Nate Malone at  nmalone@rentonwa.gov or Kristin Trivelas ktrivelas@rentonwa.gov . 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants  / intergovernmental 40,651$           50,067$                  38,624$           (2,027)$            (11,443)$          77.14% Premiums 2,624,684        2,640,000               2,624,684         ‐                         (15,316)            99.42% Interest and other misc 167,996           20,000                    377,478           209,482           357,478           1887.39% TOTAL  REVENUES 2,833,331        2,710,067               3,040,786        207,455           330,719           112.20% EXPENSES: Personnel 94,066              110,285                  84,636              9,430                25,649              76.74% Medical/Dental  Claims 1,027,300        1,312,693               1,166,511        (139,211)          146,182           88.86% Contracted Services 64,951              29,311                    49,107              15,844              (19,796)            167.54% TOTAL  OPERATING EXPENSES 1,186,317        1,452,289               1,300,254        (113,937)          152,035           89.53% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 1,647,014        1,257,778               1,740,532        93,518              482,754           138.38% TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY ‐                          ‐                                 ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                          ‐                                 ‐                          ‐                          ‐                         N/A CHANGE IN  FUND BALANCE 1,647,014        1,257,778               1,740,532        93,518              482,754           138.38% BEGINNING FUND BALANCE, Jan 1 16,541,245      18,188,260            18,188,260      1,647,015         ‐                         100.00% ENDING FUND BALANCE, Dec 31 18,188,259$   19,446,038$          19,928,792$   1,740,533$      482,754$         102.48% Insurance Reserves 18,188,259      19,446,038            19,928,792       AVAILABLE FUND BALANCE ‐$                        ‐$                              ‐$                        RETIREE HEALTHCARE VARIANCE