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HomeMy WebLinkAbout2023 ACFR - City of RentonAnnual Comprehensive Financial Report For the year ended December 31, 2023 City of Renton // 1055 S Grady Way, Renton, WA 98057 // rentonwa.gov i CITY OF RENTON 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT For Year Ended December 31, 2023 Finance Department City of Renton 1055 South Grady Way Renton, Washington 98057 (425) 430-6887 Website: www.rentonwa.gov ii ACKNOWLEDGEMENTS Prepared by the Finance Department Finance Administrator Kari Roller Fiscal Services Director Kristin Trivelas Budget and Accounting Manager Nate Malone Accounting Staff Fred Hall, Tax & Licensing Manager Raevel Chea, Senior Finance Analyst Sean Hollingsworth, Senior Finance Analyst Ariel Llorach, Senior Finance Analyst Stacy Robinson, Senior Finance Analyst Melissa Melloy, Senior Finance Analyst Melina Si, Senior Finance Analyst Roseanne Do, Senior Grants Analyst Print/Design Staff Karl Hurst, Print/Mail Supervisor Sheila Cowley, Communications Specialist I TABLE OF CONTENTS DECEMBER 31, 2023 ITEM PAGE iii INTRODUCTORY SECTION Letter of Transmittal ..................................................................................................................................... 1-1 Corporate Organization Structure & Reporting Relations ............................................................................ 1-6 2022 Annual Comprehensive Financial Report Award ................................................................................. 1-7 FINANCIAL SECTION Independent Auditor’s Report .................................................................................................................... 2-1 Management Discussion and Analysis ........................................................................................................ 3-1 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ............................................................................................................... 4-1 Statement of Activities .................................................................................................................... 4-2 Fund Statements: Governmental Fund Financial Statements: Balance Sheet .................................................................................................................................. 4-3 Reconciliation of Balance Sheet to the Statement of Net Position ................................................. 4-4 Statement of Revenues, Expenditures and Changes in Fund Balances........................................... 4-5 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .................................... 4-6 Proprietary Fund Financial Statements: Statement of Net Position ............................................................................................................... 4-7 Statement of Revenues, Expenses, and Changes in Net Position ................................................... 4-8 Statement of Cash Flows ................................................................................................................. 4-9 Fiduciary Fund Statements: Statement of Fiduciary Net Position ............................................................................................. 4-11 Statement of Changes in Fiduciary Net Position ........................................................................... 4-12 Notes to Financial Statements: Note 1: Significant Accounting Policies ........................................................................................ 4-13 Note 2: Deposits and Investments ............................................................................................... 4-28 Note 3: Property Taxes ................................................................................................................. 4-31 Note 4: Capital Assets and Depreciation ...................................................................................... 4-33 Note 5: Pensions ........................................................................................................................... 4-37 Note 6: Other Post Employment Benefits .................................................................................... 4-51 Note 7: Contingencies .................................................................................................................. 4-54 Note 8: Risk Management ............................................................................................................ 4-54 Note 9: Interfund Transactions ..................................................................................................... 4-57 Note 10: Long Term Debt .............................................................................................................. 4-59 Note 11: Joint Ventures ................................................................................................................. 4-62 Note 12: Subscription-Based Information Technology Arrangements ......................................... 4-65 Note 13: Leases ............................................................................................................................. 4-66 Note 14: Tax Abatement ............................................................................................................... 4-71 Note 15: Subsequent Events ......................................................................................................... 4-72 TABLE OF CONTENTS DECEMBER 31, 2023 ITEM PAGE iv Required Supplementary Information Other than MD&A: Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund ................................................................................................................................... 5-1 Notes to Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund ................................................................................................................................... 5-2 Schedule of the City’s Proportionate Share of the Net Pension Liability - PERS Plan 1 ......................... 5-4 Schedule of the City’s Proportionate Share of the Net Pension Liability - PERS Plan 2/3 ..................... 5-5 Schedule of the City’s Proportionate Share of the Net Pension Liability - PSERS Plan 2 ....................... 5-6 Schedule of the City’s Proportionate Share of the Net Pension Liability - LEOFF Plan 1 ....................... 5-7 Schedule of the City’s Proportionate Share of the Net Pension Liability - LEOFF Plan 2 ....................... 5-8 Schedule of Employer Contributions - WA Department of Retirement Systems .................................. 5-9 Schedule of Changes in Net Pension Liability and Related Ratios - Firefighters’ Pension Fund .......... 5-10 Schedule of Employer Contributions - Firefighters’ Pension Fund ...................................................... 5-11 Schedule of Investment Returns - Firefighters’ Pension Fund ............................................................. 5-12 Schedule of Changes in Total OPEB Liability and Related Ratios………………………………. .................... ...5-13 Combining Statements and Other Supplementary Information: Non-Major Fund Descriptions ................................................................................................................ 6-1 Combining Governmental Balance Sheet - Nonmajor Governmental Funds Summary by Fund Type ................................................................................................................... 6-5 Combining Balance Sheet - Nonmajor Special Revenue Funds ............................................................. 6-6 Combining Balance Sheet - Nonmajor Debt Service Funds ................................................................... 6-7 Combining Balance Sheet - Nonmajor Capital Project Funds ................................................................ 6-8 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Summary by Fund Type ................................................................................ 6-9 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Special Revenue Funds .................................................................................................................. 6-10 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Debt Service Funds ........................................................................................................................ 6-11 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Capital Project Funds ..................................................................................................................... 6-12 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Municipal Facilities CIP .................................................................................................................. 6-13 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Municipal Facilities CIP – Family First Center ............................................................................... 6-14 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Capital Improvement ..................................................................................................................... 6-15 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Housing and Supportive Services .................................................................................................. 6-16 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Hotel/Motel Tax ............................................................................................................................ 6-17 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Cable Communications Development ........................................................................................... 6-18 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Springbrook Wetlands Bank .......................................................................................................... 6-19 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Police Seizure ................................................................................................................................. 6-20 TABLE OF CONTENTS DECEMBER 31, 2023 ITEM PAGE v Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Police CSAM Seizure ...................................................................................................................... 6-21 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual School District Impact Mitigation .................................................................................................. 6-22 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Fire Impact Mitigation ................................................................................................................... 6-23 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual General Debt ................................................................................................................................. 6-24 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Community Development Impact Mitigation................................................................................ 6-25 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Transportation Impact Mitigation ................................................................................................. 6-26 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual REET 1 ............................................................................................................................................ 6-27 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual REET 1 ............................................................................................................................................ 6-28 Combining Statement of Net Position, Nonmajor Enterprise Funds ................................................... 6-29 Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Nonmajor Enterprise Funds........................................................................................................... 6-30 Combining Statement of Cash Flows - Nonmajor Enterprise Funds .................................................... 6-31 Combining Statement of Net Position, Internal Service Funds ............................................................ 6-33 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position, Internal Service Funds ................................................................................................................... 6-34 Combining Statement of Cash Flows, Internal Service Funds .............................................................. 6-35 STATISTICAL SECTION Statistical Section Description ................................................................................................................ 7-1 Financial Trends: Table 1: Net Position by Component ................................................................................................. 7-2 Table 2: Changes in Net Position ........................................................................................................ 7-3 Table 3: Fund Balance of Governmental Funds ................................................................................. 7-5 Table 4: Changes in Fund Balance of Governmental Funds ............................................................... 7-6 Revenue Capacity: Table 5: Water Utility Systems Revenue Information ........................................................................ 7-7 Table 6: Principal Rate Payers ............................................................................................................ 7-8 Table 7: Water Utility Rates ............................................................................................................. 7-11 Table 8: General Government Tax Revenue by Source .................................................................... 7-14 Table 9: Principal Property Tax Payers ............................................................................................. 7-15 Table 10: Assessed Value of Taxable Property ................................................................................... 7-16 Table 11: Property Tax Rates Direct and Overlapping Governments ................................................ 7-17 Table 12: Property Tax Levies and Collections ................................................................................... 7-18 Table 13: Sales Tax Collections by Sector ........................................................................................... 7-19 TABLE OF CONTENTS DECEMBER 31, 2023 ITEM PAGE vi Debt Capacity: Table 14: Ratios of Outstanding Debt by Type ................................................................................... 7-20 Table 15: Legal Debt Margin Information .......................................................................................... 7-21 Table 16: Ratios of General Bonded Debt Outstanding to Assessed Value ....................................... 7-22 Table 17: Direct and Overlapping Governmental Activities Debt ...................................................... 7-23 Table 18: Pledged-Revenue Coverage ................................................................................................ 7-24 Demographic and Economic Information: Table 19: Demographic and Economic Statistics ................................................................................ 7-25 Table 20: Principal Employers ............................................................................................................ 7-26 Operating Information: Table 21: Full Time Equivalent City Government Employees by Function ......................................... 7-27 Table 22: Operating Indicators by Function ....................................................................................... 7-28 Table 23: Utility Systems Supplemental Operating Information ....................................................... 7-29 Table 24: Capital Assets Statistics by Function ................................................................................... 7-30 July 29, 2024 Honorable Armondo Pavone, Mayor Members of the Renton City Council Residents of Renton City of Renton, Washington Mr. Mayor, Honorable Councilmembers, and Citizens of Renton: We are pleased to present the City’s Annual Comprehensive Financial Report for the year ended December 31, 2023. The city maintains a system of internal controls designed to provide reasonable assurance that assets are safeguarded against loss or unauthorized use, and that financial records can be relied upon to produce accurate and fairly presented financial statements in accordance with generally accepted accounting principles. Management assumes full responsibility for the completeness and reliability of the information contained in this report. To the best of our knowledge and belief, the enclosed financial statements and all supporting schedules are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the city. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of the relative costs and benefits of the control system requires estimates and judgments by management. These financial statements have been audited by the Washington State Auditor’s Office. This independent audit was conducted in accordance with generally accepted auditing standards and generally accepted government auditing standards to provide an independent assessment of fair presentation of the city’s financial position. The State Auditor’s Office has issued an unmodified (“clean”) opinion on the city’s financial statements, which is included at the front of the financial statement section of this report. Management’s Discussion and Analysis (MD&A) immediately follows the State Auditor’s report and provides a narrative introduction, overview, and analysis to accompany the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. 2023 Annual Comprehensive Financial Report City of Renton, Washington Introduction 1-1 PROFILE OF THE CITY Incorporated on September 6, 1901, Renton is a city in King County, Washington. Situated 11 miles southeast of downtown Seattle, five miles from SeaTac Airport, Renton straddles the southeast shore of Lake Washington, at the junction of key north-south and east-west transportation corridors. The city’s early economy was based on coal mining, clay production, and timber export. Today, Renton is best known as the final assembly point for the Boeing 737 family of commercial airplanes, but it is also home to a growing number of well-known manufacturing, technology, health care service companies and government institutions, including Boeing, Paccar, Wizards of the Coast Gaming, Ikea Home Furnishing, Valley Medical Center, the Seattle Seahawks headquarters, Blue Origin and Seattle Branch of Federal Reserve Bank. Also recently added has been the Seattle Sounders campus headquarters with plans of future development within this site for multiple practice playfields. With the Seattle area hosting the 2026 world cup, this location will be a hub for the many visitors and teams visiting the area for the world cup event. The City of Renton has a strong mayor form of government with an appointed Chief Administrative Officer. The mayor is independently elected to a four-year term. The mayor’s job is to manage day-to- day operations, and to lead policy development and implementation with the seven-member City Council elected at large on a non-partisan basis. With a population of 107,500 in 2023, Renton is the 8th largest city in the state, and the 4th largest in King County. The city provides a full range of municipal services to an incorporated area of 23.7 square miles. These services include police, street construction and maintenance, planning and zoning, municipal court, general administrative services, municipal airport, golf course, and parks and recreational facilities that includes an aquatic center, senior center, community and neighborhood centers, and a museum. The city operates four utilities: water, sewer, surface water, and contracts out its solid waste collection. These are operated very similar to a private business where the revenues from rates and other direct sources must pay for the operational, capital, and long-term debt costs. The city has its own water supplies and does not rely on purchased water to meet normal service demands. The city’s sewage is treated by King County, but the city is responsible for transferring and maintaining the system to King County. The city bills Renton residents a monthly fee for the cost of sewer treatment performed by King County. Since the 2011-12 biennium, the city has adopted a biennial budget. The Council is required to adopt an initial budget for the biennium no later than December 31 preceding the beginning of the fiscal year on January 1. The City of Renton maintains budgetary controls to ensure compliance with legal provisions embodied in the budget. All activities are appropriated through the budget process and published in the City’s Budget document. The City Council must adopt an ordinance to increase or decrease total appropriations in a Fund. The mayor has the authority to move appropriations within a Fund. 2023 Annual Comprehensive Financial Report City of Renton, Washington Introduction 1-2 A more thorough discussion of the city’s accounting policies can be found under the Summary of Significant Accounting Policies in the Notes to the Financial Statements. ECONOMIC CONDITION AND OUTLOOK In 2023, Renton’s economy has continued to be strong with continued growth in terms of business taxes. The addition of many notable businesses helped to bolster this tax base with a strong sales and retail tax revenue. The double-digit growth seen in previous years however has begun to slow down significantly signaling the economy is beginning to cool. The sales tax increased slightly by 1.6% compared to 2022 or an increase of $592 thousand over 2022 tax revenues. Markets showing the largest growth were service, manufacturing and construction. The City’s housing picture saw a decrease in sales after a strong sales outcome the previous year. The significant increase in interest rates to help fend off high inflation continues to be an area of concern to watch. With inflation continuing to be quite sticky and not showing any signs of decreasing as expected, the interest rates are expected to hold until at least the Fall of 2024, thus putting more pressure on the housing market. This impact was seen not only in home sales but also in a decrease in new home permits. In terms of employment, the Puget Sound region showed growth early on in the year however mid- year several large firms laid off workers specifically in the technology industries, thus prompting the overall decrease in employment in 2023 with an expected slight decrease to continue into 2024 before improving again in early 2025. A staple of Renton’s economy is the presence of the Boeing Company, which operates out of the Renton Municipal Airport. Boeing initiates its maiden 737 MAX flights from this airport. Boeing’s 737 Max production has had its challenges in the past 6 months, with the company slowing production to bolster quality controls. It’s anticipated the production will continue to be at a reduced rate in 2024 which could impact future business tax projections if the production continues to be lower than anticipated. Overall, the economic outlook for Renton remains stable for 2024 and beyond; a solid mix of retail businesses, continued low unemployment rate, and large-scale capital investments within the city will support a continued stable tax base and an attractive center for healthcare, retail, and manufacturing. LONG-TERM FINANCIAL PLANNING Unrestricted fund balance (the aggregate of committed, assigned, and unassigned components of fund balance) in the General Fund was 87 percent of the total General Fund expenditures, compared to 73 percent in 2022. This fund balance includes the city’s catastrophic reserves, anti-recessionary reserves, insurance reserves, and sales tax annexation credit reserves. The ramp-up of these fund balances was a direct result of an increase in tax rates for both property and Business and Occupation (B&O) Tax and an enhanced stabilization fund policy, which was originally adopted in late-2013. During the great recession, the city depleted much of its reserves and has since 2023 Annual Comprehensive Financial Report City of Renton, Washington Introduction 1-3 rebuilt them. Inflation continues to be on the rise, causing the rate of salary, healthcare costs and deferred maintenance on city buildings to continue to increase at a faster rate than revenues. As part of the enhancements to the city’s stabilization policy, the Council also adopted a reserve fund for Economic Development, which currently has accumulated a $2.5 million balance. The reserve fund will help the city leverage Local Revitalization Financing (LRF) funds made available by the State of Washington through a local sales tax option levy. The city issued bonds for infrastructure improvements needed in the Southport revitalization area and improvements to numerous parks in early 2019. A portion of the debt service will be paid by the annual $500,000 local sales tax option credit provided by the State of Washington. The City Council adopted a B&O Tax effective January 1, 2016, in hopes to generate enough sustainable revenue for funding General Fund operations into the future without significant decreases to basic city services. The city changed the tax structure in 2022 increasing the maximum amount any one taxpayer would pay annually in B&O taxes by 2 million dollars each year until reaching the new maximum tax cap amount of 12 million in 2026. This increase along with a slight increase in tax rates in 2023 garnered a 40% increase in B&O taxes for the General Fund over 2022 figures. The city has been very responsible and responsive in balancing the services the community needs with the changing mixture and level of resources. In addition to strong financial policies, the city has also continued to expand its economy and pursue progressive economic development strategies to maintain a thriving and sustainable economy. RELEVANT FINANCIAL POLICIES The city has adopted a comprehensive set of financial policies, including a multi-tiered stabilization policy that ensures available reserves for future General Fund funding gaps, long-term economic development initiatives, capital commitments, equipment reserves, catastrophic and anti-recessionary reserves, and general operating cash flow requirements. Due to strong financial policies, management, and economic factors, the City of Renton received an upgraded LTGO bond rating of AAA by Standard & Poor’s in March 2019. OTHER INFORMATION Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Renton for its annual comprehensive financial report for the fiscal year ended December 31, 2022. The city has a long history of achieving this prestigious award. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. 2023 Annual Comprehensive Financial Report City of Renton, Washington Introduction 1-4 The dedicated staff of the Finance Department work hard each day to ensure that the city’s financial transactions are processed accurately, and records are maintained orderly and in conformance with policies and procedures. Special thanks are due to Nate Malone, Budget and Accounting Manager, and Ariel Llorach, Senior Finance Analyst, who served as the project leads. Further appreciation is extended to the City Council and City Management for their support in conducting financial operations of the city in a sound and progressive manner, and in conformance with internal and external requirements. For more information regarding the city’s budget please refer to the city’s website for 2023-2024 adopted budget as well as monthly sales tax and budgetary financial reports. Respectfully, Kari Roller Finance Administrator 2023 Annual Comprehensive Financial Report City of Renton, Washington Introduction 1-5 FINANCE Kari Roller, Administrator 425-430-6931 RENTON CITIZENS MAYORArmondo Pavone425-430-6500 MUNICIPAL COURT JUDGES Kara Murphy Richards Jessica Giner 425-430-6550 CITY COUNCILValerie O'Halloran, PresidentJames Alberson, Ryan McIrvin, Ruth Pérez, Ed Prince, Carmen Rivera, Kim-Khánh Văn 425-430-6501 CHIEF ADMINISTRATIVE OFFICER Ed VanValey 425-430-6500 PARKS & RECREATION Maryjane Van Cleave, Interim Administrator425-430-6600 PUBLIC WORKSMartin Pastucha, Administrator 425-430-7311 EXECUTIVE SERVICES Kristi Rowland, Deputy CAO 425-430-6947 COMMUNITY AND ECONOMIC DEVELOPMENT Vanessa Dolbee, Interim Administrator POLICE Jon Schuldt, Chief 425-430-7500 HUMAN RESOURCES & RISKMANAGEMENTEllen Bradley-Mak, Administrator425-430-7650 Renton History Museum Golf Course Maintenance Services Utility Systems Transportation Systems Economic Development Development Engineering City Clerk Communications & Engagement Support Operations Bureau Field Operations Bureau Emergency Management Labor, Class, and Compensation Risk Management Benefits Fiscal Services Staff Services Special Operations Investigations Administrative Services Patrol Services Patrol Operations CITY ATTORNEY Shane Moloney, City Attorney 425-430-6480 Human Services Parks Planning and Natural Resources Recreation Airport Development Services Organizational Development Facilities Parks and Trails Planning Information Technology Prosecution EQUITY, HOUSING & HUMAN SERVICESMaryjane Van Cleave, Administrator425-430-6600 Community Development and Housing 2023 Annual Comprehensive Financial Report City of Renton, Washington Introduction, 1-6 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Renton Washington For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2022 Executive Director/CEO 2023 Annual Comprehensive Financial Report City of Renton, Washington Introduction, 1-7 Office of the Washington State Auditor Pat McCarthy INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Mayor and City Council City of Renton Renton, Washington REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Renton as of and for the year then ended December 31, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Renton, as of December 31, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 2023 Annual Comprehensive Financial Report City of Renton, Washington Independent Auditor's Report, 2-1 Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. Performing an audit in accordance with GAAS and Government Auditing Standards includes the following responsibilities: •Exercise professional judgment and maintain professional skepticism throughout the audit; •Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements; •Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed; •Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements; •Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time; and 2023 Annual Comprehensive Financial Report City of Renton, Washington Independent Auditor's Report, 2-2 •Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required supplementary information as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining statements and other supplementary information are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. This information has been subjected to auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information The other information comprises Introductory and Statistical Sections but does not include the basic financial statements and our auditor’s report thereon. Management is responsible for the other information included in the financial statements. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or provide any assurance thereon. In connection with the audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the 2023 Annual Comprehensive Financial Report City of Renton, Washington Independent Auditor's Report, 2-3 basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS In accordance with Government Auditing Standards, we will also issue our report dated December 31, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. That report will be issued under separate cover in the City’s Single Audit Report. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Sincerely, Pat McCarthy, State Auditor Olympia, WA July 29, 2024 2023 Annual Comprehensive Financial Report City of Renton, Washington Independent Auditor's Report, 2-4 MANAGEMENT’S DISCUSSION AND ANALYSIS The City of Renton’s management offers this Management’s Discussion and Analysis (MD&A), which is an overview and analysis of the City of Renton’s financial activities for the year ended December 31, 2023. To best understand the city’s financial activities, we encourage readers to consider the information in this discussion and analysis in conjunction with information provided in the letter of transmittal and the basic financial statements. FINANCIAL HIGHLIGHTS •As of December 31, 2023, the City of Renton’s total assets and deferred outflows of resources exceed liabilities and deferred inflows of resources by $1.3 billion. Of this amount, $358.3 million represents unrestricted net position, which may be used to meet the government’s ongoing obligations to citizens and creditors. •The City of Renton’s total net position increased $87.2 million. This increase was primarily due to cash and cash equivalents, investments at fair market value, capital asset acquisitions and restricted assessment receivable, in addition to a decrease in current long-term debt in both the governmental and business-type activities. •At the close of the current fiscal year, the City of Renton’s governmental funds reported combined fund balances of $184.5 million, an increase of $14.5 million from 2022. This increase is attributed to revenues exceeding expenditures in the general fund by $28.5 million and in the nonmajor funds by $6.6 million. Despite the promise of economic downturn from economists, the city continued to see significant increases in tax revenues, particularly in property tax, local retail and B&O tax revenues. In addition to levying the allowable 1% increase for property tax to account for inflation, the city levied $1.5 million of banked capacity to support ongoing operations and capital projects. Local retail sales tax had stronger than anticipated increases in services, manufacturing, and construction sectors as a direct result of consumer spend, continued economic development and improved business operations. The city increased the B&O tax cap in 2023 and marginally increased tax rates, which contributed to a rise in B&O tax revenue. The city also saw a significant increase in investment earnings, resulting from strong market rates closely tied to the federal funds rate and economic forecast indicators. These increases in revenue were offset by a decrease in real estate excise tax paid to the city driven by a cooling housing market and reduced real estate transactions that were at a historically high rate in 2022. Intergovernmental revenues decreased due to the recognition of significant grant revenue related to the American Rescue Plan Act (ARPA) substantially completed and recognized in prior year. Lastly, a decrease in charges for services was driven by the one-time collection of impact fees associated with Solera, an affordable and market-rate housing project, completed in prior year. •Approximately 54 percent ($100.3 million) of the total governmental fund balance is available for spending at the city’s discretion (unassigned fund balance). •Total unrestricted fund balance (the total of committed, assigned and unassigned fund balance components) for the general fund was $138.7 million, which is approximately 87 percent of general fund 2023 expenditures. •The City of Renton’s total outstanding long-term debt decreased by $7.5 million during the 2023 Annual Comprehensive Financial Report City of Renton, Washington Management's Discussion and Analysis, 3-1 current fiscal year because current resources and grants are being used to finance current operations and capital projects. The city has continued to pay down its current debt obligations without issuance of new debt. OVERVIEW OF THE FINANCIAL STATEMENTS The discussion and analysis provided here within are intended to serve as an introduction to the city’s basic financial statements. The basic financial statements consist of three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the basic financial statements. Government-wide Financial Statements The government-wide financial statements provide both long-term and short-term information about the city’s overall financial status, in a manner similar to a private-sector business. Statement of Net Position – The first of these government-wide statements is the statement of net position. The statement of net position presents the city’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the city is improving or deteriorating. Statement of Activities – The second government-wide statement is the statement of activities, which reports how the city’s net position changed during the current fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and compensated absences). An important purpose of the design of the statement of activities is to show the financial reliance of the city’s distinct activities or functions on revenues provided by the city’s taxpayers. Another indicator to consider when evaluating the financial position of the city includes changes to the property tax base, general economic conditions as demonstrated through business license fees or sales tax revenue, and the condition of the city’s infrastructure (roads, drainage systems, bridges, and water infrastructure). Both of the government-wide financial statements distinguish governmental activities of the city (activities principally supported by taxes and intergovernmental revenue), and business-type activities of the city (activities that are intended to recover all, or a significant portion, of their costs through user fees and charges). Governmental activities include general government, judicial, public safety, utilities, transportation, economic environment, health and human services, and culture and recreation. The equipment rental and insurance internal service funds are also reported as governmental activities. The business-type activities include the waterworks utility, solid waste, airport, and golf course funds. Fund Financial Statements The city uses fund structure to ensure and demonstrate fiscal integrity and compliance with finance-related legal requirements. A fund is a group of related accounts used to maintain control over resources that have been segregated for specific activities and objectives. There are three types of funds: governmental, proprietary, and fiduciary. The fund financial statements focus on 2023 Annual Comprehensive Financial Report City of Renton, Washington Management's Discussion and Analysis, 3-2 major funds separately while all others are combined into a single aggregated presentation. Individual data for non-major funds is presented in a following section, Combining Statements. Governmental Funds – The governmental funds are used to account for the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide statements, the focus of governmental fund financial statements is on near-term inflows and outflows of available financial resources and on balances of resources available at the end of the fiscal year. Such information is useful in evaluating whether there are more or less financial resources that can used in the near future to finance city services. Because the focus of governmental fund financial statements is a narrower view than that of the government-wide financial statements, it is useful to compare similar information in order to gain a better understanding of the long-term impact of the government’s near-term financing decisions. The Reconciliation of the Balance Sheet and Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds reconciles to the differences between the governmental fund statements and the governmental activities column in the government-wide statements. The city maintains sixteen individual governmental funds. Information for the city’s major governmental funds (general, municipal capital facilities and capital improvement) are presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance. Data from the other thirteen funds are combined into a single aggregated presentation. Individual fund data for each of these non-major governmental funds is presented in the combining statements section of this report. The city maintains budgetary controls over its governmental funds. Budgetary controls ensure compliance with legal provisions embodied in the annual appropriated budget. Governmental fund budgets are established in accordance with state law and are adopted on a fund level. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget. Proprietary Funds – The proprietary fund statements present information for two types of funds. Enterprise funds operate as business-type activities in the government-wide statements and include the waterworks utility, solid waste, golf course, and airport funds. The other proprietary fund types are internal service funds. Internal service funds are used to report activities that provide supplies and services to various city departments and to allocate the associated costs of providing these services to the various governmental and enterprise functions. The revenues and expenses of internal service funds that support governmental activities are eliminated in the government-wide statements and the remaining activity is combined within the governmental activities in the government-wide statements. The proprietary fund statements provide the same information as the government-wide financial statements, only in more detail. The city reports the activity of its two major enterprise funds, waterworks utility (water, wastewater, and storm water) and solid waste separately. Information from the remaining non-major enterprise funds is combined and presented in a single, aggregated column in the fund statements. Internal service funds are also aggregated and reported separately in this section. 2023 Annual Comprehensive Financial Report City of Renton, Washington Management's Discussion and Analysis, 3-3 Fiduciary Funds – Fiduciary Funds are used to account for resources held for the benefit of parties  outside the government. Fiduciary funds are not reported in the government‐wide financial  statements because the resources of those funds are not available to support the city’s own  operations. The accounting used for fiduciary funds is much like that used for proprietary funds.    Notes to the Financial Statements    The notes provide additional information that is essential to a full understanding of the information  provided and are an integral part of the government‐wide and fund financial statements.    Other information  In addition to the basic finance statements and accompanying notes, this report also presents:  1.Required Supplemental Information (RSI) RSI provides budgetary comparisons for the general fund budget to actual, as well as the city’s funding progress for the Firefighters’ Pension Trust Fund and Other Post‐Employment Benefits (LEOFF 1 Retiree Medical). 2.Combining Statements The combining statements provide additional detail for other government funds, internal service funds, and fiduciary funds. 3.Statistical Information This section includes unaudited trends and demographic information. GOVERNMENT‐WIDE FINANCIAL ANALYSIS  Statement of Net Position   The following is a summary of the city’s net position as of December 31, 2023, with comparison to  2022:  2023 2022 2023 2022 2023 2022 Current assets 298,350,869$           273,873,780$          142,472,666$      131,356,571$       440,823,535$         405,230,351$          Capital assets 565,173,195   535,528,983     325,052,511     317,808,221   890,225,706      853,337,204     Other non‐current assets 79,957,437   77,668,187   5,643,576   6,494,908    85,601,013    84,163,095    TOTAL ASSETS 943,481,501   887,070,950     473,168,753     455,659,700   1,416,650,254     1,342,730,650      Deferred Outflows of Resources 18,009,202   17,961,310   2,675,741   3,242,709    20,684,943    21,204,019    Long‐term liabilities 78,468,729   82,751,647   9,761,212   13,069,446     88,229,941    95,821,093    Other liabilities 26,458,357   24,923,142   7,978,230   7,860,242    34,436,587    32,783,384    TOTAL LIABILITIES 104,927,086   107,674,789     17,739,442   20,929,688     122,666,528      128,604,477     Deferred Inflows of Resources 12,706,586   19,119,833   1,775,771   3,219,082    14,482,357    22,338,915    NET POSITION: 536,120,344   509,894,057     313,952,567     304,930,019   850,072,911      814,824,076     Restricted 86,174,613   91,947,460   5,633,456   5,638,678    91,808,069    97,586,138    Unrestricted 221,562,074   176,396,121     136,743,258     124,184,942   358,305,332      300,581,063     TOTAL NET POSITION 843,857,031$           778,237,638$          456,329,281$      434,753,639$       1,300,186,312$        1,212,991,277$          Net Investment in Capital Assets CONDENSED STATEMENT OF NET POSITION Governmental Activities Business‐type Activities Total 2023 Annual Comprehensive Financial Report City of Renton, Washington Management's Discussion and Analysis, 3-4 At the close of the most recent fiscal year, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $1.3 billion, a $87.2 million increase over 2022. Net Position – Net Investment in Capital Assets. $850.1 million (65%) of total net position reflects the city’s investment in capital, net of related debt that was used to acquire those assets. The city uses these assets to provide a variety of services to the public. Accordingly, these assets are not available for future spending. Although investment in capital assets is reported net of related debt, resources used to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Net Position – Restricted. Total restricted net position accounts for $91.8 million of the city’s net position, which is a $5.8 million decrease (6.3%) from 2022. This decrease is primarily driven by a $7.6 million change in special purpose bonds due to the substantial completion of the following bond-funded capital projects at the close of 2023: Kiwanis Park, Phillip Arnold Park, Gene Coulon North Water Walk and Park Avenue. This was partially offset by an increase to the amounts restricted for net pension assets. Net Position – Unrestricted. The remaining $358.3 million of net position is unrestricted and may be used to meet the government’s ongoing obligations for governmental and business type activities ($221.6 million and $136.7 million, respectively). At the end of the current fiscal year, the city reports a positive net position in all net position categories, for both governmental activities and business-type activities. The same held true for the prior fiscal year. 2023 Annual Comprehensive Financial Report City of Renton, Washington Management's Discussion and Analysis, 3-5 CONDENSED STATEMENT OF ACTIVITIES 2023 2022 2023 2022 2023 2022 Revenues: Program revenues: Charges for services 20,272,950$ 36,403,705$ 98,160,057$ 91,828,464$ 118,433,007$ 128,232,169$ Operating grants and contributions 7,301,395 19,180,209 386,362 846,147 7,687,757 20,026,356 Capital grants and contributions 19,491,497 23,817,637 5,187,720 6,940,356 24,679,217 30,757,993 Taxes and other general revenues:- Property taxes 25,201,735 23,250,415 25,201,735 23,250,415 Sales taxes 48,173,923 47,758,735 48,173,923 47,758,735 Other Taxes 50,873,968 45,514,835 50,873,968 45,514,835 Other general revenue 15,246,779 2,980,699 5,686,639 351,909 20,933,418 3,332,608 Total revenues 186,562,247 198,906,235 109,420,778 99,966,876 295,983,025 298,873,111 Expenses:- General government 18,831,400 10,586,624 18,831,400 10,586,624 Judicial 3,924,144 3,828,832 3,924,144 3,828,832 Public safety 45,821,151 45,403,831 45,821,151 45,403,831 Utilities 43,193 34,598 43,193 34,598 Transportation 20,222,129 22,026,500 20,222,129 22,026,500 Economic and natural environment 13,681,351 13,737,667 13,681,351 13,737,667 Health and human services 3,578,875 3,130,494 3,578,875 3,130,494 Culture and recreation 14,510,956 16,314,321 14,510,956 16,314,321 Interest on long-term debt 910,047 979,918 910,047 979,918 Airport 3,263,367 3,354,236 3,263,367 3,354,236 Golf Course 3,096,659 2,817,014 3,096,659 2,817,014 Solid Waste 24,946,989 22,464,173 24,946,989 22,464,173 Waterworks Utility 55,957,729 54,532,445 55,957,729 54,532,445 Total expenses 121,523,246 116,042,785 87,264,744 83,167,868 208,787,990 199,210,653 65,039,001 82,863,450 22,156,034 16,799,008 87,195,035 99,662,458 Transfers 580,392 (565,249) (580,392) 565,249 - - Special Items - - - - - - Increase (decrease) in net position 65,619,393 82,298,201 21,575,642 17,364,257 87,195,035 99,662,458 Net position - beginning 778,237,638 - 434,753,639 - 1,212,991,277 - Prior Period Adjustment - 695,939,437 - 417,389,382 - 1,113,328,819 Change in Accounting Principle - - - - - Net position - ending 843,857,031$ 778,237,638$ 456,329,281$ 434,753,639$ 1,300,186,312$ 1,212,991,277$ Business-type Activities Total Increase in net position before transfers Governmental Activities Statement of Activities and Change in Net Position The following is a condensed summary statement of activities and change in net position as of December 31, 2023, with comparison to 2022. Citywide revenue. Total revenue (governmental and business-type) decreased by $2.9 million, or 1 percent. This change in revenue is attributed to an $18.4 million decrease in grants and contributions and a $9.8 million decrease in charges for services offset by a $25.3 million increase in interest income, property, retail sales, and business and excise taxes. The decrease in capital and operating grants and contributions is attributed to a large operating grant in addition to capital contributions associated with a new facility. In 2022, the city recognized $12.7 million in one-time grant revenues related to the American Rescue Plan Act (ARPA) primarily utilized to provide government services to the extent of the reduction in revenue experienced from the COVID-19 pandemic. The city also recognized significant one-time capital contributions and grant revenue related to the substantial completion of the Family First Community Center. Further, charges and 2023 Annual Comprehensive Financial Report City of Renton, Washington Management's Discussion and Analysis, 3-6 services decreased primarily due to the one-time collection of impact fees collected on the Solera project (affordable and market-rate housing) in prior year. The increase in property tax, local retail and business and operation (B&O) tax revenues are due to several factors: the city levied the allowable 1% increase for property tax to account for inflation, as well as levying $1.5 million of banked capacity to support ongoing operations and capital projects; 2) local retail sales tax increased primarily in services, manufacturing, and construction sectors as a direct result of consumer spend, continued economic development and improved business operations; and 3) the B&O tax cap increased from $7 million to $9 million in 2023 coupled with marginal increase to B&O tax rates. Additionally, there was a significant increase in investment earnings from strong market rates closely tied to the federal funds rate resulting from favorable economic indicators. Citywide expenses. Expenses totaled $208.8 million in 2023, a $9.6 million increase from 2022. Governmental activities expenses increased $5.5 million primarily due to personnel costs, capital outlay costs and internal service charges. The city has actively strived to fill vacant positions that remained vacant due to turnover and COVID-19, in addition to the issuance of cost-of-living increases citywide. Business-type expenses increased by $4.1 million due to increases in personnel services and contracted services expenses. As noted above, filling previously vacant positions coupled with cost-of- living increases has driven personnel costs up from prior year. Increased utility costs, CPI increases from garbage provider, and increased internal service charges contributed to the overall rise in contracted services. Change in net position. The resulting change in net position was an increase in 2023 by $87.2 million attributed to a $65.6 million increase from governmental activities and a $21.6 million increase from business-type activities. The increase in governmental activities and business-type activities is related to revenue and expenditure variances explained above. Governmental Activities Analysis Governmental activities cost a total of $121.5 million in 2023 against program generated revenue (excluding taxes and other general revenue) of $47 million. Program revenues support 16.5 percent of the governmental program costs, while the remaining 83.5 percent of governmental program costs are supported by general revenues (taxes and other general revenue). Compared to 2022, governmental activities cost increased $5.5 million and program revenues decreased $32.3 million. 2023 Annual Comprehensive Financial Report City of Renton, Washington Management's Discussion and Analysis, 3-7 Chart 1 portrays the extent that the cost of each of the city’s governmental programs is supported by its own program generated revenue (fees, intergovernmental revenues, and contributions specifically related to that program). Public safety accounts for 38 percent of the total governmental activity costs but generates the lowest percentage of program revenues compared to its program costs (7 percent). Conversely, judicial recovered all their costs in 2023 through program revenues, which consist of traffic citations, parking citations, criminal charges, miscellaneous court fees, and red-light camera fees. Chart 2 depicts the source breakdown for all revenues that fund governmental activities. Approximately 67 percent of the total governmental activity revenues come from taxes. The city’s two largest governmental revenue sources are sales and use taxes (26 percent) and other taxing sources (27 percent), which consists of business and occupation tax and excise tax. The next largest revenue source is property tax which accounts for 14 percent of the city’s general governmental revenue. While program specific charges for services, grants and contributions generate 25 percent of total revenue for general governmental activities, the city is largely dependent on tax revenue and as a result, the general economy has a major impact on the city’s revenue streams. Other general revenue accounts for 8 percent of revenue sources and includes interest and miscellaneous revenue. 2023 Annual Comprehensive Financial Report City of Renton, Washington Management's Discussion and Analysis, 3-8 Business-Type Activities Analysis Since the primary source of revenue for business-type activities is user fees and charges, there is much less disparity between program costs and related program revenue. Chart 3 shows the expense of each of the city’s business-type program along with each program’s revenue (fees and intergovernmental revenues specifically related to that program). The Waterworks Utility generated $65.1 million in fees for services, and the operating and debt service costs were $56 million. In addition, the waterworks utility received $4.7 million in grants, contributions, and capital contributions from developers, for a combined increase in net position of $13.8 million. The operating balance is necessary for future planned system infrastructure replacements, repairs, and enhancements. Compared to 2022, the waterworks utility had a $354 thousand increase in operating revenue collections and a $1.4 million increase in operating expenses. The waterworks utility had increased personnel costs primarily attributed to providing cost-of living increases that aligned with CPI and a competitive job market. Contracted services also contributed to the increase in costs, primarily related to increased utility costs and sewer service charges for wastewater treatment services provided by King County. The Solid Waste Utility generated $24.8 million in fees for services and incurred $24.9 million in program expenses, resulting in a decrease in net position of $129 thousand. The Airport generated a total of $4.8 million in revenue from charges for services and incurred $3.3 million in overall expenses. The Airport received $810 thousand in grants and contributions in 2023, resulting in an $2.4 million increase in net position. The Golf Course generated a total of $3.5 million in green fees, driving range charges, and other user fees. The total expenses for the Golf Course were $3.1 million, resulting in a $430 thousand increase in net position for the year. 2023 Annual Comprehensive Financial Report City of Renton, Washington Management's Discussion and Analysis, 3-9 Chart 4 illustrates the source of revenue for business-type activities, which are supported primarily from charges for services. Charges for services generated $98.2 million, or 89.7 percent, of the total revenue sources, while grant revenue and contributions generated $5.6 million, or 5.1 percent, of the total revenue sources. This is a $6.3 million increase in charges for services from 2022 primarily due to rate increases and a $2.2 million decrease in grants and contributions from 2022. FUND FINANCIAL ANALYSIS Governmental Funds The governmental fund statements provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the city’s ability to meet financing requirements in the near term. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. General Fund – At the end of the fiscal year, the city had a fund balance of $110.1 million, which is an increase of $16.8 million from 2022. Overall, the city’s general fund revenues increased $2.7 million over 2022, and general fund expenditures have increased by $6 million. As the economic growth remained steady during 2023, the city saw a $11 million increase in tax revenues as a direct result of consumer spend, improved business operations, and a marginal increase in business tax rates. The increase in expenditures over prior year can primarily be attributed to inflation, which resulted in providing cost-of-living increases more closely aligned with higher-than-average CPI, as well as increases for external services and supplies. Municipal Facilities CIP Fund – This fund accounts for all the City’s parks and facilities related capital projects (new construction, major maintenance, and improvements). The overall revenue increased $1.2 million over 2022 primarily attributed to the grants and intergovernmental funding on numerous projects including the Gene Coulon North Water Walk project. Expenditures decreased $4.1 million, primarily due to the Family First Center project completing the majority of construction activity in 2022. Capital Improvement Fund – This fund accounts for all street, roadway and transportation related capital projects and programs. Overall revenue increased $3.5 million over 2022 due to contributions for the Rainier Ave Phase 4 project for joint utility construction. Overall expenditures increased $1.8 million primarily due to costs associated with large ongoing construction projects, most notably Rainier Ave Phase 4 and Park Ave Extension. Proprietary Funds The proprietary fund financial statements provide the same type of information found in the government-wide financial statements, but in more detail. The analysis for the proprietary funds is 2023 Annual Comprehensive Financial Report City of Renton, Washington Management's Discussion and Analysis, 3-10 Original Final Actual Taxes 98,876,943$ 107,357,943$ 114,191,700$ 6,833,757$ Various charges 24,298,351 29,362,980 27,990,060 (1,372,920) Other Revenues 1,637,535 3,846,659 7,050,973 3,204,314 TOTAL REVENUES 124,812,829 140,567,582 149,232,733 8,665,151 Current Operating 123,311,490 130,212,933 120,515,720 9,697,213 Capital Outlay 520,200 481,667 178,055 303,612 Debt Service - - - - TOTAL EXPENDITURES 123,831,690 130,694,600 120,693,775 10,000,825 Transfers/insurance recoveries (3,762,729) (12,015,282) (11,787,649) 227,633 (2,781,590) (2,142,300) 16,751,309 18,893,609 FUND BALANCE, JANUARY 1 62,921,276 83,605,978 93,106,510 9,500,532 Prior Period Adjustment - - - - FUND BALANCE - DECEMBER 31 60,139,686$ 81,463,678$ 109,857,819$ 28,394,141$ GENERAL FUND BUDGET COMPARISON Budgeted Amounts Net Change in Fund Balance Variance with Final Budget Favorable (Unfavorable) found within the business-type activities analysis and discussion above. The proprietary fund statements also include a column for internal services fund activities in aggregate. These activities are consolidated with general governmental activities in the government-wide statements. GENERAL FUND BUDGETARY HIGHLIGHTS The city uses a biennial budget process that adopts two one-year budgets at one time; 2023 was the first year of the 2023-24 biennium. The following is a condensed summary of the 2023 general fund budget comparison. Original budget for tax revenues, including property taxes, business and occupation taxes and other miscellaneous taxes, is budgeted based on the previous four to five years’ collection rates. The final budget was adjusted to conservatively reflect the projected effects of the economic condition and anticipated increases from rate increases. The overall economic impact was better than expected. Sales tax, business and occupation taxes, criminal justice tax, utility taxes and admission taxes came in higher than projected for an overall variance of $6.8 million. Various charges came in lower than final budget due to grants awarded but not spent within the budgeted year. Grant revenues are budgeted in full at time of award; any amounts not received in current year are carried forward to future year until received or expired. Other revenues were higher than anticipated due to improvement in the investment market which provided a significant revenue increase. Original budget for expenditures had a net increase of $6.9 million primarily driven by budget increases in Culture and Recreation, Economic Environment, General Government, Health and Human 2023 Annual Comprehensive Financial Report City of Renton, Washington Management's Discussion and Analysis, 3-11 CAPITAL ASSETS (Net of Depreciation/Amortization) 2023 2022 2023 2022 2023 2022 Land and Land Improvements 219,624,628$ 216,858,805$ 6,143,690$ 6,143,690$ 225,768,318$ 223,002,495$ Capital Assets 304,782,724 255,637,938 296,334,751 281,104,819 601,117,475 536,742,757 Intangible Assets 2,339,170 1,022,484 836,400 842,326 3,175,570 1,864,810 Construction in Progress 38,426,673 63,032,240 21,737,670 30,559,712 60,164,343 93,591,952 Total 565,173,195$ 536,551,467$ 325,052,511$ 318,650,547$ 890,225,706$ 855,202,014$ Governmental Activities Business-Type Activities Total Services and Public Safety. Personnel costs were one of the main drivers of increase over original budget in these service areas. Position reclassifications and cost-of-living increases closely aligned with higher-than-average CPI indices better positioned the city within the competing job market to retain qualified staff and attract new talent. In addition, culture and recreation increased contracted services for citywide cleanup efforts; economic environment increased budget for downtown cleaning services and arts and culture master plan; general government had increases to professional services for legal fees and merchant services; and health and human services added funding for a needs assessment, increased funding to non-profit human service agencies to support community needs. Other factors related to the increase of final budget included the procurement of grants to support health and human services and public safety. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The City of Renton’s investment in capital assets, including construction in progress and net of accumulated depreciation, for governmental and business-type activities amounts to $890.2 million as of December 31, 2023, compared to $855.2 million in 2022. Governmental activities showed an increase of $28.6 million which is attributed to several large capital projects. These largest projects include construction and completion of the Family First Community Center, Duvall Avenue, Williams and Wells Avenue, and Gene Coulon Water Walk and Trestle Bridge. The increases in construction in progress were partially offset by depreciation outpacing new capital assets added. Businesses-type activities showed a net increase of $6.4 million attributed to a couple of large capital projects. The largest projects include the Downtown Water Main and Sewer Replacement and the Downtown Storm System Improvement. As of December 31, 2023, depreciable capital assets for governmental activities were 43 percent depreciated, slightly lower than the 2022 rate (46 percent). This comparison indicates the city is replacing its assets at almost the same rate that are depreciating, which is a positive indicator. More detailed capital asset information is provided in Note 4 of the Notes to Financial Statements. Debt Administration The city’s total outstanding debt at December 31, 2023, was $56.7 million, a $7.5 million (11.7 percent) decrease from the prior year which is attributed to the city’s continued commitment to paying down debt. More detailed debt information is provided in Note 10 of the Notes to Financial Statements. 2023 Annual Comprehensive Financial Report City of Renton, Washington Management's Discussion and Analysis, 3-12 2023 2022 2023 2022 2023 2022 General Obligation Bonds 24,395,000$ 26,315,000$ -$ -$ 24,395,000$ 26,315,000$ Revenue Bonds - - 10,565,000 13,050,000 10,565,000 13,050,000 Other Long-Term Debt 18,775,194 21,316,057 298,021 572,497 19,073,214 21,888,554 Unamortized Premium (Discount) 2,452,965 2,661,853 202,477 253,096 2,655,442 2,914,949 Total 45,623,159$ 50,292,910$ 11,065,497$ 13,875,593$ 56,688,656$ 64,168,503$ LONG-TERM DEBT Governmental Activities Business-Type Activities Total The City’s general obligation debt rating was upgraded to AAA by Standard and Poor in March 2019. REQUESTS FOR FINANCIAL INFORMATION This financial report is designed to provide our citizens, creditors, investors, and others interested in the city’s finances with a general overview of the city’s finances and to show the city’s accountability for financial resources it receives. If you have any questions about this report or need additional information, please contact Kari Roller, Finance Administrator, 1055 South Grady Way, Renton, WA 98057 or visit our web site at www.rentonwa.gov. 2023 Annual Comprehensive Financial Report City of Renton, Washington Management's Discussion and Analysis, 3-13 Governmental Activities Business-type Activities Total ASSETS Current assets: Cash and cash equivalents 169,926,592$ 84,649,694$ 254,576,286$ Restricted cash and cash equivalents 185,426 - 185,426 Cash with fiscal agent 302,597 - 302,597 Investments at fair value 89,780,574 46,599,645 136,380,219 Receivables (net of allowance for uncollectibles)37,041,446 10,702,727 47,744,173 Internal balances (115,087) 115,087 - Inventories 310,142 366,393 676,535 Prepayments 919,179 - 919,179 Notes and assessments receivable - 39,120 39,120 Total current assets 298,350,869 142,472,666 440,823,535 Noncurrent assets: Restricted cash and cash equivalents - 2,810,145 2,810,145 Notes and assessments receivable 165,001 10,120 175,121 Restricted assessment receivable 3,122,038 - 3,122,038 Net pension asset 37,238,781 2,823,311 40,062,092 Investment in joint ventures (net)39,431,617 - 39,431,617 Capital assets: Land 219,624,628 6,143,690 225,768,318 Construction in progress 38,426,673 21,737,670 60,164,343 Capital assets (net)304,782,724 296,334,751 601,117,475 Intangible assets (net)2,339,170 836,400 3,175,570 Total noncurrent assets 645,130,632 330,696,087 975,826,719 Total assets 943,481,501 473,168,753 1,416,650,254 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions 17,766,904 2,327,797 20,094,701 Deferred amount on refunding 242,298 347,944 590,242 Total deferred outflows of resources 18,009,202 2,675,741 20,684,943 Total assets and deferred outflows of resources 961,490,703 475,844,494 1,437,335,197 LIABILITIES Current liabilities: Accounts payable and other current liabilities 14,676,675 4,048,553 18,725,228 Interest payable 157,180 22,623 179,803 Unearned revenue 3,636,519 542,922 4,179,441 Current portion of long-term debt 7,987,983 3,364,132 11,352,115 Total current liabilities 26,458,357 7,978,230 34,436,587 Noncurrent liabilities: Noncurrent portion of long-term debt 78,468,729 9,761,212 88,229,941 Total noncurrent liabilities 78,468,729 9,761,212 88,229,941 Total liabilities 104,927,086 17,739,442 122,666,528 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions 11,651,782 1,658,225 13,310,007 Deferred Inflows related to leases 1,054,804 117,546 1,172,350 Total deferred inflows of resources 12,706,586 1,775,771 14,482,357 Total liabilities and deferred inflows of resources 117,633,672 19,515,213 137,148,885 NET POSITION Net investment in capital assets 536,120,344 313,952,567 850,072,911 Restricted for: Debt Service 252,350 2,810,145 3,062,495 Grants and contributions 1,802,089 - 1,802,089 Pensions 37,238,781 2,823,311 40,062,092 Special purpose taxes & assessments 46,881,393 - 46,881,393 Unrestricted 221,562,074 136,743,258 358,305,332 Total net position 843,857,031$ 456,329,281$ 1,300,186,312$ Primary Government City of Renton Statement of Net Position December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-1The notes to financial statements are an integral part of this statement. Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-type Activities Total Primary government: Governmental activities: Culture and recreation 14,510,956$ 3,133,145$ 284,138$ 3,978,617$ (7,115,056)$ - $ (7,115,056)$ Economic environment 13,681,351 7,169,265 180,520 566,038 (5,765,528) - (5,765,528) General government 18,831,400 2,953,151 1,784,091 785,026 (13,309,132) - (13,309,132) Health and human services 3,578,875 465,062 429,697 - (2,684,116) - (2,684,116) Judicial 3,924,144 3,956,736 143,966 - 176,558 - 176,558 Public safety 45,821,151 1,415,913 2,001,784 - (42,403,454) - (42,403,454) Transportation 20,222,129 1,179,678 2,438,880 14,161,816 (2,441,755) - (2,441,755) Utilities 43,193 - - - (43,193) - (43,193) Interest on long-term debt 910,047 - 38,319 - (871,728) - (871,728) Total governmental activities 121,523,246 20,272,950 7,301,395 19,491,497 (74,457,404) - (74,457,404) Business-type activities: Airport 3,263,367 4,800,061 8,019 809,965 - 2,354,678 2,354,678 Golf Course 3,096,659 3,526,548 - - - 429,889 429,889 Solid Waste 24,946,989 24,780,614 37,616 - - (128,759) (128,759) Waterworks Utility 55,957,729 65,052,834 340,727 4,377,755 - 13,813,587 13,813,587 Total business-type activities 87,264,744 98,160,057 386,362 5,187,720 - 16,469,395 16,469,395 Total primary government 208,787,990$ 118,433,007$ 7,687,757$ 24,679,217$ (74,457,404) 16,469,395 (57,988,009) 25,201,735 - 25,201,735 48,173,923 - 48,173,923 43,807,894 - 43,807,894 7,066,074 - 7,066,074 10,426,625 5,393,560 15,820,185 4,571,462 293,079 4,864,541 248,692 - 248,692 580,392 (580,392) - 140,076,797 5,106,247 145,183,044 65,619,393 21,575,642 87,195,035 778,237,638 434,753,639 1,212,991,277 843,857,031$ 456,329,281$ 1,300,186,312$ City of Renton Statement of Activities For the Year Ended December 31, 2023 Net (Expense) Revenue and Changes in Net Position Program Revenues Primary Government General revenues: Property taxes Retail sales taxes Business taxes Excise taxes Miscellaneous Gain on disposal of capital assets Net position - January 1 Net position - December 31 Transfers Interest and Investment earnings Total general revenues, special items, and transfers Change in net position 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-2The notes to financial statements are an integral part of this statement. General Municipal Facilities CIP Capital Improvement Total Nonmajor Funds Total Governmental Funds ASSETS Cash & cash equivalents 70,034,249$ 16,960,274$ 10,811,053$ 17,496,665$ 115,302,241$ Restricted cash, cash equivalents 185,426 - - - 185,426 Cash with fiscal agent 302,597 - - - 302,597 Investments at fair value 36,555,406 9,036,862 5,760,402 9,322,668 60,675,338 Receivables (net of allowance for uncollectible): Taxes 14,389,339 - - 1,407,569 15,796,908 Customer accounts 11,635,594 409,653 2,921,645 22,083 14,988,975 Interest & penalties 275,377 49,197 24,214 99,522 448,310 Due from other funds 18,709 115 - - 18,824 Due from other governments 1,113,976 573,602 3,128,662 4,132 4,820,372 Interfund loans 44,982 - - - 44,982 Advances due from other funds 99,018 - - - 99,018 Notes Receivable 165,002 - - - 165,002 Restricted assessments receivable 3,122,038 - - - 3,122,038 Total assets 137,941,713$ 27,029,703$ 22,645,976$ 28,352,639$ 215,970,031$ LIABILITIES Accrued wages and benefits payable 3,010,519$ -$ -$ -$ 3,010,519$ Accounts payable 2,720,826 575,831 2,114,710 125,383 5,536,750 Retainage payable 34,601 65,716 53,425 15,974 169,716 Due to other funds 235,547 - - - 235,547 Due to other governments 201,542 - - - 201,542 Customer deposits 1,702,455 - - - 1,702,455 Unearned revenue 4,691,321 - - - 4,691,321 Total liabilities 12,596,811 641,547 2,168,135 141,357 15,547,850 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 14,206,970 350,985 273,952 12,275 14,844,182 Deferred inflows related to leases 1,054,804 - - - 1,054,804 Total deferred inflows of resources 15,261,774 350,985 273,952 12,275 15,898,986 Total liabilities and deferred inflows of resources 27,858,585 992,532 2,442,087 153,632 31,446,836 FUND BALANCES (DEFICITS) Restricted 1,655,626 7,663,499 14,141,791 22,352,878 45,813,794 Committed 2,608,882 12,581,977 5,744,060 701,041 21,635,960 Assigned 5,547,992 5,791,695 318,038 5,145,092 16,802,817 Unassigned 100,270,628 - - (4) 100,270,624 Total fund balances (deficits)110,083,128 26,037,171 20,203,889 28,199,007 184,523,195 Total liabiliƟes, deferred inflows of resources, and fund balances (deficits)137,941,713$ 27,029,703$ 22,645,976$ 28,352,639$ 215,970,031$ City of Renton Balance Sheet Governmental Funds December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-3The notes to financial statements are an integral part of this statement. FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $184,523,195 Amounts reported for governmental activities in the statement of net position are different because: Other non-current assets and deferred outflows of resources used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds. Investment in Joint Venture-SCORE 29,695,679 Investment in Joint Venture-Valley Communications 9,660,311 Investment in Joint Venture-File Local 75,627 Net pension assets 35,201,183 Deferred outflows related to pensions 16,086,922 Deferred outflows related to refundings 242,298 90,962,020 Capital assets used in governmental activities are not financial resources and,therefore,are not reported in the governmental funds. Land 219,624,628 Construction in progress 38,231,495 Capital assets (net of accumulated depreciation)295,350,449 Intangible assets (net of accumulated amortization)804,795 554,011,367 Other long-term assets are not available to pay for current period expenditures and,therefore,are reported as unavailable revenue in the funds. Property and business tax revenue 599,657 Photo enforcement revenue 8,791,828 Municipal court revenue 366,179 Intergovernmental revenue 1,167,227 Other 4,974,093 15,898,984 Certain liabilities are not due and payable in the current period and,therefore,are not reported in the governmental funds. Interest payable (157,180) Bonds payable (44,659,422) Leases payable (66,974) Compensated absences (4,660,553) Net pension liability (3,909,679) Deferred inflows related to pensions (10,455,035) (63,908,843) Accrued pension expense reported in the governmental funds is not included in the calculation of the net pension liability.173,065 Internal service funds are used by management to charge the costs of certain activities,such as equipment rental, self-insurance, information technology and facility services to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net position.62,197,243 NET POSITION OF GOVERNMENTAL ACTIVITIES $843,857,031 Reconciliation of the Balance Sheet To the Statement of Net Position December 31, 2023 City of Renton 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-4The notes to financial statements are an integral part of this statement. General Municipal Facilities CIP Capital Improvement Total Nonmajor Funds Total Governmental Funds REVENUES Taxes 114,191,700$ -$ -$ 9,973,328$ 124,165,028$ Licenses and permits 6,649,422 - - 51,405 6,700,827 Intergovernmental revenues 6,277,959 3,795,562 9,391,196 34,187 19,498,904 Charges for services 5,859,700 30,670 119,413 1,174,154 7,183,937 Fines and forfeits 3,791,015 - - 970 3,791,985 Contributions 627,852 3,200,074 3,133,135 517,376 7,478,437 Investment earnings 4,331,801 967,196 495,168 1,560,690 7,354,855 Miscellaneous revenue 2,091,320 - 307,523 - 2,398,843 Total revenues 143,820,769 7,993,502 13,446,435 13,312,110 178,572,816 EXPENDITURES Current: Culture and recreation 15,483,346 1,192,986 - 88,601 16,764,933 Economic environment 13,391,492 - - 421,344 13,812,836 General government 14,924,263 870,560 731 385,621 16,181,175 Health and human services 3,704,619 - - 5,238 3,709,857 Judicial 4,179,892 - - - 4,179,892 Public safety 50,445,635 - - 88,452 50,534,087 Transportation 12,974,509 - 566,104 - 13,540,613 Debt service: Principal payment - - - 4,453,188 4,453,188 Interest payment - - - 1,110,801 1,110,801 Capital outlay: Culture and recreation 18,634 11,651,586 - 73,733 11,743,953 Economic environment 20,014 354,371 - - 374,385 General government - 3,489,069 - - 3,489,069 Health and human services - 24,928 - - 24,928 Public safety 71,485 - - 74,831 146,316 Transportation 67,922 - 18,820,199 - 18,888,121 Total expenditures 115,281,811 17,583,500 19,387,034 6,701,809 158,954,154 Excess (deficiency) of revenues over expenditures 28,538,958 (9,589,998) (5,940,599) 6,610,301 19,618,662 OTHER FINANCING SOURCES (USES) Transfer in 1,846,210 9,545,379 11,044,897 5,515,851 27,952,337 Transfers out (13,657,841) (1,000,000) - (18,651,898) (33,309,739) Proceeds from sale of capital assets 840 - - 247,852 248,692 Insurance Recoveries 23,142 - - - 23,142 Total other financing sources (uses)(11,787,649) 8,545,379 11,044,897 (12,888,195) (5,085,568) Net change in fund balances 16,751,309 (1,044,619) 5,104,298 (6,277,894) 14,533,094 Fund balances - January 1 93,331,819 27,081,790$ 15,099,591 34,476,901 169,990,101 Fund balances - December 31 110,083,128$ 26,037,171$ 20,203,889$ 28,199,007$ 184,523,195$ City of Renton Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-5The notes to financial statements are an integral part of this statement. NET CHANGES IN FUND BALANCES ‐ TOTAL GOVERNMENTAL FUNDS $ 14,533,094      Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation and amortization expenses and the loss on transfer of capital assets to other governments exceeded capital outlays. Capital expenditures 35,312,559      Depreciation and amortization expense (11,613,722)     Book value of capital assets sold/abandoned (230,894)         23,467,943      Governmental funds report pension expenditures when due and payable from current financial resources. However, in the statement of activities, pension expense is measured by the change in the net pension assets, net pension liabilities, and related deferred outflows and inflows. This is the net difference in pension expense.7,272,562        Donations of property and infrastructure from developers are not reported in the governmental funds. However, in the statement of activities, the fair market value of those assets is recognized as revenue.3,194,588        Revenues in the statement of activities that do not provide current financial resources are not reported as revenue in the funds. Unavailable revenue changed by this amount.(704,792)          The issuance of long‐term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principle of long‐term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and refundings when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long‐term debt and related items.4,393,559        Increase (decrease) in Investment in Joint Ventures which do not provide current financial resources and, therefore, are not reported in the funds. Equity interest‐SCORE 970,291            Equity interest‐Valley Communications 1,039,560        Equity interest‐FileLocal 9,150               2,019,001        Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue (expense) of the internal service funds are reported with governmental activities.11,443,438      CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 65,619,393      For the Year Ended December 31, 2023 City of Renton Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds To the Statement of Activities Governmental Activities 2023 Annual Comprehensive Financial Report City of Renton, Washington The notes to financial statements are an integral part of this statement.Basic Financial Statements, 4-6 Governmental Activities Solid Waste Waterworks Utility Total Nonmajor Funds Total Enterprise Funds Internal Service Funds ASSETS Current assets: Cash & cash equivalents 3,247,763$ 72,391,673$ 9,010,258$ 84,649,694$ 54,624,351$ Investments at fair value 1,730,490 40,069,433 4,799,722 46,599,645 29,105,236 Receivables (net of allowance for uncollectible): Customer accounts 1,701,540 6,882,458 222,769 8,806,767 800,731 Special assessments - 39,120 - 39,120 - Interest & penalties 8,395 349,694 33,117 391,206 186,150 Due from other funds 20,909 206,994 31,184 259,087 - Due from other governments 37,418 1,195,329 272,007 1,504,754 - Supplies inventory - 324,889 41,504 366,393 310,142 Prepayments - - - - 919,176 Total current assets 6,746,515 121,459,590 14,410,561 142,616,666 85,945,786 Noncurrent assets: Restricted cash, cash equivalents - 2,810,145 - 2,810,145 - Special assessments deferred - 10,120 - 10,120 - Net Pension Asset 88,531 2,203,593 531,187 2,823,311 2,037,598 Capital assets: Land - 2,676,410 3,467,280 6,143,690 - Construction in Progress - 19,809,052 1,928,618 21,737,670 195,178 Capital assets (net)- 278,055,156 18,279,595 296,334,751 9,432,275 Intangible assets (net)- 811,000 25,400 836,400 1,534,375 Total noncurrent assets 88,531 306,375,476 24,232,080 330,696,087 13,199,426 Total assets 6,835,046 427,835,066 38,642,641 473,312,753 99,145,212 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions 72,993 1,816,845 437,959 2,327,797 1,679,982 Deferred amount on refunding - 347,944 - 347,944 - Total deferred outflows of resources 72,993 2,164,789 437,959 2,675,741 1,679,982 Total assets and deferred outflows of resources 6,908,039 429,999,855 39,080,600 475,988,494 100,825,194 LIABILITIES Current liabilities: Accrued wages and benefits payable 18,183 435,890 109,817 563,890 408,072 Accounts payable 1,071,714 1,548,663 373,918 2,994,295 802,589 Due to other funds - - - - 42,365 Due to other governments - 11,469 - 11,469 - Retainage payable - 38,937 4,710 43,647 41,264 Interest payable - 22,623 - 22,623 - Customer deposits - 53,431 381,821 435,252 - Unearned revenue - 222,324 320,598 542,922 - Claims incurred but not reported - - - - 2,976,829 Leases payable - - 1,870 1,870 471,150 Compensated absences 9,115 447,232 88,267 544,614 353,269 Public works trust fund loan payable - 272,648 - 272,648 - Revenue bonds payable - 2,545,000 - 2,545,000 - OPEB Liability - - - - 1,229,311 Interfund loans - - 44,982 44,982 - Total current liabilities 1,099,012 5,598,217 1,325,983 8,023,212 6,324,849 Noncurrent liabilities: Leases payable - - 23,503 23,503 425,613 Compensated absences 4,389 233,780 46,775 284,944 179,634 Revenue bonds payable - 8,222,477 - 8,222,477 - Net pension liability 38,578 960,240 231,470 1,230,288 887,905 OPEB liability - - - - 29,613,203 Interfund loans - - 99,018 99,018 - Total noncurrent liabilities 42,967 9,416,497 400,766 9,860,230 31,106,355 Total liabilities 1,141,979 15,014,714 1,726,749 17,883,442 37,431,204 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions 51,997 1,294,244 311,984 1,658,225 1,196,747 Deferred inflows related to leases - - 117,546 117,546 - Total deferred inflows of resources 51,997 1,294,244 429,530 1,775,771 1,196,747 Total liabilities and deferred inflows of resources 1,193,976 16,308,958 2,156,279 19,659,213 38,627,951 NET POSITION Net investment in capital assets - 290,559,350 23,393,217 313,952,567 10,264,657 Restricted for: Debt Service - 2,810,145 - 2,810,145 - Pensions 88,531 2,203,593 531,187 2,823,311 2,037,608 Unrestricted 5,625,532 118,117,809 12,999,917 136,743,258 49,894,978 Total net position 5,714,063$ 413,690,897$ 36,924,321$ 456,329,281$ 62,197,243$ Business-type Activities City of Renton Statement of Net Position Proprietary Funds December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-7The notes to financial statements are an integral part of this statement. Governmental Activities Solid Waste Waterworks Utility Total Nonmajor Funds Total Enterprise Funds Internal Service Funds OPERATING REVENUES Charges for services 24,780,614$ 64,972,784$ 8,326,609$ 98,080,007$ 38,209,689$ Licenses and permits - 80,050 - 80,050 225,260 Total operating revenues 24,780,614 65,052,834 8,326,609 98,160,057 38,434,949 OPERATING EXPENSES Supplies 34,250 1,351,387 579,523 1,965,160 3,683,166 Personnel Services 716,525 11,431,113 2,932,132 15,079,770 9,333,029 Contracted Services 22,845,308 27,720,598 1,479,870 52,045,776 7,516,216 Insurance - - - - 17,396,813 Taxes 1,350,906 5,359,884 23,532 6,734,322 4,640 Depreciation and amortization - 9,354,655 1,308,300 10,662,955 2,791,873 Total operating expenses 24,946,989 55,217,637 6,323,357 86,487,983 40,725,737 Operating income (loss)(166,375) 9,835,197 2,003,252 11,672,074 (2,290,788) NONOPERATING REVENUES (EXPENSES) Intergovernmental revenues 37,418 1,264,257 817,984 2,119,659 37,276 Miscellaneous revenue - 291,551 1,529 293,080 1,002,059 Investment earnings 155,030 4,725,277 513,253 5,393,560 3,071,763 Interest expense - (358,575) (2,284) (360,859) (3,526) Insurance Recoveries - - - - 603,653 Gain (loss) on disposal of capital assets - (381,517) (34,386) (415,903) (88,010) Total nonoperating revenues (expenses)192,448 5,540,993 1,296,096 7,029,537 4,623,215 Income (loss) before contributions and transfers 26,073 15,376,190 3,299,348 18,701,611 2,332,427 Transfer in - - 115,000 115,000 6,896,607 Transfers out (84,275) (85,778) (525,339) (695,392) (958,813) Capital contributions - 3,453,283 - 3,453,283 3,173,217 Contributions 198 942 - 1,140 - Change in net position (58,004) 18,744,637 2,889,009 21,575,642 11,443,438 Total net position - January 1 5,772,067 394,946,260 34,035,312 434,753,639 50,753,805 Total net position - December 31 5,714,063$ 413,690,897$ 36,924,321$ 456,329,281$ 62,197,243$ Business-type Activities City of Renton Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-8The notes to financial statements are an integral part of this statement. GOVERNMENTAL OTHER TOTAL ACTIVITIES SOLID WATERWORKS ENTERPRISE ENTERPRISE INTERNAL SERVICE WASTE UTILITY FUNDS FUNDS FUNDS CASH FLOWS FROM OPERATING ACTIVITIES: Cash received for services $26,151,029 $64,166,871 $9,250,894 $99,568,794 $37,786,658 Cash paid to suppliers for goods & services (25,203,261) (34,770,255) (1,970,861) (61,944,377) (26,849,997) Cash paid to employees (743,604) (12,427,025) (3,160,459) (16,331,088) (10,312,718) Other non-operating receipts 198 292,493 1,528 294,219 1,592,707 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 204,362 17,262,084 4,121,102 21,587,548 2,216,650 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds - - 115,000 115,000 6,896,607 Transfers to other funds (84,275) (85,778) (525,339) (695,392) (958,813) Operating grants and contributions 165,834 2,208,762 16,038 2,390,634 50,281 NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES 81,559 2,122,984 (394,301) 1,810,242 5,988,075 CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: Proceeds from the sale of equipment - - (1) (1) - System development charges - 980,943 - 980,943 - Acquisition & construction of capital assets - (13,520,996) (1,757,083) (15,278,079) (4,838,675) Special assessments - 229,809 - 229,809 - Capital grants - 1,088,878 529,939 1,618,817 - Capital replacement reserves received - - - - 3,173,217 Principal payments on debt - (2,808,268) (1,829) (2,810,097) 810,102 Interest payments on debt - (277,410) - (277,410) (3,526) NET CASH PROVIDED (USED) BY CAPITAL FINANCING ACTIVITIES - (14,307,044) (1,228,974) (15,536,018) (858,882) CASH FLOWS FROM INVESTING ACTIVITIES: Payments for investments (365,286) (8,363,248) (1,553,123) (10,281,657) (7,042,670) Interest paid on investments and loans 110,037 3,773,882 400,211 4,284,130 2,310,014 NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (255,249) (4,589,366) (1,152,912) (5,997,527) (4,732,656) NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS 30,672 488,658 1,344,915 1,864,245 2,613,187 CASH & CASH EQUIVALENTS, JANUARY 1 3,217,091 71,903,015 7,665,343 82,785,449 52,011,164 RESTRICTED CASH & CASH EQUIVALENTS, JANUARY 1 - 2,810,145 - 2,810,145 - TOTAL CASH, RESTRICTED CASH, & CASHEQUIVALENTS, DECEMBER 31 $3,247,763 $75,201,818 $9,010,258 $87,459,839 $54,624,351 City of Renton BUSINESS-TYPE ACTIVITIES ENTERPRISE FUNDS Statement of Cash Flows Proprietary Funds Page 1 of 2 For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-9The notes to financial statements are an integral part of this statement. GOVERNMENTAL ACTIVITIES OTHER TOTAL INTERNAL SOLID WATERWORKS ENTERPRISE ENTERPRISE SERVICE WASTE UTILITY FUNDS FUNDS FUNDS RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss)$(166,375) $9,835,197 $2,003,253 $11,672,075 $(2,290,788) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation & amortization - 9,354,655 1,308,299 10,662,954 2,791,873 Other non-operating revenue 198 292,493 1,528 294,219 1,592,707 (Increase) decrease in accounts receivable and accrued interest and penalties 1,370,415 (761,203) 797,448 1,406,660 (648,291) Increase (decrease) in due from other funds (18,459) (205,232) (31,184) (254,875) - (Increase) decrease in inventory & prepaid items - (13,355) 169,082 155,727 (485,883) (Increase) decrease in net pension asset and deferred outflows related to pensions 78,319 304,560 102,325 485,204 132,946 Increase (decrease) in operating accounts payable (954,338) (119,799) 6,407 (1,067,730) 129,666 Increase (decrease) in operating retainage payable - - - - 31,672 Increase (decrease) in due to other funds - - (46,819) (46,819) 40,603 Increase (decrease) in other short-term liabilities - 28,426 - 28,426 124,243 Increase (decrease) in customer deposits - (2,161) 12,896 10,735 - Increase (decrease) in unearned revenues - (100,296) 139,283 38,987 - Increase (decrease) in OPEB liability - - - - 1,910,537 Increase (decrease) in accrued employee wages and benefits 4,559 32,741 21,752 59,052 22,131 Increase (decrease) in net pension liability and deferred inflows related to pensions (109,957) (1,361,639) (352,404) (1,824,000) (1,134,766) Increase (decrease) in deferred inflows related to leases - (22,303) (10,764) (33,067) - Total adjustments 370,737 7,426,887 2,117,849 9,915,473 4,507,438 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $204,362 $17,262,084 $4,121,102 $21,587,548 $2,216,650 NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES Contributions of capital assets $- $1,244,252 $- $1,244,252 $- Depreciation & amortization $- $9,354,655 $1,308,299 $10,662,954 $2,791,873 Increase (decrease) in fair value of investments $40,926 $951,395 $92,157 $1,084,478 $652,784 City of Renton BUSINESS-TYPE ACTIVITIES ENTERPRISE FUNDS Statement of Cash Flows Proprietary Funds Page 2 of 2 For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-10The notes to financial statements are an integral part of this statement. Pension (and Other Employee Benefit) Trust Funds Custodial Funds ASSETS Cash & cash equivalents 5,727,241$ 360,108$ Investments at fair value:- Certificates of deposit 366,948 Federal Home Loan Mortgage Corporation 211,715 Federal Farm Credit Bank 440,947 Federal Home Loan Bank 680,874 Federal National Mortgage Association 414,000 US Treasury 937,135 US Treasury Strip 452,152 Receivables (net allowance for uncollectible): Interest & penalties 1,036,948 - Customer accounts - 1,335 Total Cash 10,267,960 361,443 Total assets 10,267,960 361,443 LIABILITIES Due to other governments 475 144,668 Total liabilities 475 144,668 NET POSITION Restricted for: Other governments, organizations, and individuals - 216,775 Pensions 10,267,485 - Total net position 10,267,485$ 216,775$ City of Renton Statement of Fiduciary Net Position December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-11The notes to financial statements are an integral part of this statement. Pension (and Other Employee Benefit) Trust Funds Custodial Funds ADDITIONS Investment earnings 425,290$ -$ Total investment earnings 425,290 - Contributions: Fire insurance premiums transferred in 199,566 - Custodial collections - courts - 171,083 Custodial collections - other governments - 1,492,038 Custodial collections - other individuals and organizations - 244,753 Total contributions 199,566 1,907,874 Total additions 624,856 1,907,874 DEDUCTIONS Administrative and general 13,600 - Benefit payments 253,151 - Custodial distributions - courts - 164,162 Custodial distributions - other governments - 1,358,560 Custodial distributions - other individuals and organizations - 261,322 Total deductions 266,751 1,784,044 Net increase (decrease) in fiduciary net position 358,105 123,830 Net Position - January 1 9,909,380 92,945 Net Position - December 31 10,267,485$ 216,775$ City of Renton Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-12The notes to financial statements are an integral part of this statement. NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Renton’s financial statements have been prepared in conformity with accounting principles generally accepted in the United States (GAAP), as applied to governments. The Governmental Accounting Standards Board (GASB) is the standard setting body for governmental accounting and financial reporting. For the reporting year ended December 31, 2023, the city has implemented the following GASB Statements:  GASB Statement No. 96, Subscription-Based Information Technology Arrangements – the implementation of this Statement requires capitalization of an intangible right-to-use asset and a corresponding subscription liability with a note disclosure. The subscription term includes periods covered under an option to extend if it is reasonably certain that the government will exercise the option. The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. A. REPORTING ENTITY The City of Renton was incorporated on September 6, 1901 and operates under the laws of the State of Washington applicable to a Non-Charter code city with a mayor/council form of government. A full-time mayor and seven part-time council members serve the city, all elected at large to four-year terms. The city provides the full range of municipal services authorized by state statutes, together with a Municipal Airport, a Waterworks Utility, a Solid Waste Utility, and a Municipal Golf Course. The City of Renton has no component units (either blended or discretely presented) included in these statements. The City of Renton’s Mayor appoints the Governing Board for the Renton Housing Authority, which is not considered a component unit of the city. The city is under no obligation to subsidize, nor does it exercise any other prerequisite for inclusion. B. BASIS OF PRESENTATION The city’s basic financial statements include both government-wide statements and fund financial statements. The government-wide statements report financial information for the city as a whole, while the fund statements present detailed financial information at the fund level. The city’s fiduciary funds are presented in the fund financial statements. Since the assets are being held for the benefit of a third party and cannot be used for obligations of the city, they are not included in the government-wide statements. Government‐wide financial statements In the government-wide statement of net position governmental and business-type activities are reported. Governmental activities are mostly supported by taxes, intergovernmental revenue, and other non-exchange transactions. The governmental activities column includes the combined data from all governmental funds and internal service funds. Business-type activities mostly rely on fees and charges for services to external customers and include data from the city’s enterprise funds. 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-13 The government-wide statement of activities presents a comparison between direct expenses and program revenues for each of the city’s governmental activities (general government, judicial, public safety, utilities, transportation, economic environment, health and human services, and culture and recreation) and for each identifiable business-type activity (waterworks utility, airport, solid waste utility, and golf course). Direct expenses are those that are specifically associated with a function and therefore clearly identifiable to that particular function. The statement of activities reports the expenses of a given function offset by a program revenue directly associated with the functional program. Program revenues include: 1) charges for services which reports fees and charges for users of the city’s service, 2) operating grants and contributions which support annual operating activities, and 3) capital grants and contributions which finance the acquisition, construction, or rehabilitation of capital assets. For determining the function, charges for services are tied to the function that generates the revenue and grants and contributions are tied to the function in which functional use they are restricted towards. Taxes and other sources that are not directly related to a program are reported as general revenue. The comparison of direct expenses with program revenues identifies the extent each governmental function and business activity are self-sustaining and requires a draw from the general revenues of the city. Generally, the effect of interfund activity has been eliminated from the government-wide financial statements, apart from various charges for services among different functions within the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions involved. Fund financial statements The city’s activities are tracked in individual funds to segregate the transactions to aid in financial management and, in some cases, demonstrate legal compliance. The fund financial statements are intended to present the city’s financial activities at a more detailed level. Separate financial statements are provided for each fund category - governmental, proprietary, and fiduciary funds. Each of the city’s major funds, within each fund category, are presented in a separate column. All non-major funds, within each fund category, are aggregated into one column; internal service funds are aggregated into one column and reported on the face of the proprietary fund statements; and fiduciary funds are reported by type. The city reports the following major governmental funds: General Fund is the primary operating fund of the city. It is used to account for the resources and disbursements of ordinary city operations that are not required to be accounted for in another fund. These include the costs of legislative and executive departments, court services, finance and legal departments, development services and police departments, human resources and technical services, community services, parks, economic development, streets, property management for city owned leased facilities, farmers market, and museum. The major sources of revenue are property taxes, utility taxes, and sales taxes. Licenses and permits, charges for services, and fines and forfeits provide additional support. Community development block grant activities are also accounted for within this 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-14 fund, which is federally funded. Capital Improvement Fund accounts for transportation capital projects, many of which are dependent on the acquisition of various state and federal grant programs and impact mitigation fees. Municipal Facilities CIP accounts for all the City of Renton parks and facilities related capital projects (new construction, major maintenance, and improvements). Many of the projects are dependent on grants, levies, taxes, and mitigation revenue. The city reports the following major enterprise funds: Waterworks Utility Fund accounts for all operating and capital improvement programs for water, wastewater, and storm water services within the city. The operating activities are primarily supported by user fees and include: administration, billings and collections, debt service, engineering and operation, maintenance and repairs. The primary resources for capital improvement programs are revenue bond proceeds, grants (as available), and utility connection charges. Solid Waste Fund accounts for solid waste, recycling, and yard waste collection services for the city and is supported entirely by service fees. The expenses include payment to the city’s garbage contractor and other service charges. Additionally, the government reports the following fund types: Internal Service Funds include 1) the equipment rental fund (equipment replacement, information technology, facilities, and communications) and 2) the insurance fund (including risk management, workers compensation, unemployment compensation, and employee health care program). The equipment rental fund factors all costs, including depreciation, into the rates charged to each user department. The insurance fund pays expense and rates are charged to departments based on use and/or coverage requirements. Pension Trust Fund accounts for the payment of administrative costs and benefits for retired firefighters and their beneficiaries, who were employed prior to March 1, 1970. Primary revenues sources are the fire premium tax (contributed from the city) and investment income. Custodial Funds accounts for Administrative Office of the Courts mandated fees, taxes, permit revenue, human services payments, and other fees collected on behalf of other agencies. Special Revenue Funds are used to account for specific revenues that are restricted by external parties or committed through enabling legislation for particular purposes. Debt Service Funds account for the accumulation of resources for and the payment of general obligation and special assessment bonds. 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-15 During the course of operations, the city has activity between funds for various purposes. Any residual balances outstanding at year-end are reported as due to/from other funds and advances to/from other funds. While these balances are reported in the fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between funds included in the governmental activities (generally between governmental and internal service funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between the funds included in the business-type activities are eliminated so that only the net amount is included as internal balances in the business- type activities column. Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported as gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of government- wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances between the funds included in business-type activities are eliminated so that only the net amount is included in transfers in the business-type activities column. C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Basis of Accounting refers to the point at which revenue or expenditure/expense transactions or events are recognized in the accounts and reported in the financial statements. Measurement focus is measured one of two ways: either the current financial resource or the economic resource method. Government‐wide financial statements – the government-wide financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when the liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year they are levied, and grants are recognized as revenue as soon as all eligibility requirements have been met. Governmental fund financial statements – the governmental fund financial statements use a different measurement focus from the proprietary fund statements and government-wide statements. The governmental fund financial statements use the current financial resources measurement and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current reporting period or soon enough thereafter to pay liabilities of the current period. The city considers revenues available if they are collected within 60 days of the end of the current fiscal period. Expenditures are generally recorded when a liability is incurred, the same as accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgements are recorded only when payment is due. General capital asset acquisitions are reported as current expenditures in governmental funds. Issuance of long-term debt and capital lease acquisitions are reported as other financing sources. 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-16 Property taxes, sales tax, franchise taxes, licenses, and interest associated with the current period are all considered susceptible to accrual and have been recognized as revenue in the current fiscal period. Expenditure-driven grants are recognized as revenue when the qualifying expenditure amount is received during the period or within the availability period for this revenue source. All other revenue is considered measurable and available only when the cash is received by the city. Since the measurement focus between the governmental fund financial statements and the governmental activities in the government-wide statements vary, a detailed reconciliation is included in the fund statements to identify the relationship between the two statement types. Proprietary and fiduciary fund financial statements – the proprietary fund statements and fiduciary fund statements are reported using the economic resources measurement focus and accrual basis of accounting, the same as the government-wide statements. D. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET POSITION/FUND BALANCE 1. Cash and Cash Equivalents The city has defined cash and cash equivalents as cash on hand, demand deposits, and all highly liquid investments (including restricted assets) with maturity of three months or less when purchased. These amounts are classified on the balance sheet or in the statement of net position as cash and cash equivalents or investments in the various funds. Included in this category are all funds invested in the Local Government Investment Pool. Excluded from this category are cash balances held by Fiscal Agents since the city does not have discretionary use of these funds. Most of the city’s cash balances are pooled and invested. Interest earned from investments purchased with pooled cash is allocated monthly to each fund based on the fund’s beginning equity balance in the pooled fund. 2. Investments Investments are recorded at amortized cost or at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. 3. Receivables Receivables have been reported net of estimated uncollectible accounts. Because property taxes, special assessments, and utility billings are considered liens on property, no estimated uncollectible amounts are established. Taxes receivable consists of property taxes, utility taxes, gambling taxes, business & occupation, taxes, and admission taxes. Property taxes are an enforceable lien on real property and are due the first day of the levy year and may be paid in two equal installments. The first half is due April 1, and the balance is due October 31. The city collects approximately 99% of the property tax due in the year it is levied, and delinquent taxes are collected within the following few years. 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-17 Property tax due, but not collected within 60 days of year end, is recorded as a receivable and offset by deferred inflow of resources – unavailable revenue. There is no allowance for uncollectable property tax because historically all taxes are collected and/or enforceable via lien (refer to Note 3 for more information). Accrued interest receivable consists of amounts earned on investments, notes, and contracts. Customer accounts receivable consists of amounts owed from private individuals or organizations for goods and services. If the transactions are receivable from another governmental unit, it is accounted for within “due from other governments.” Notes receivable consist of amounts outstanding under the terms of forgivable loans made using CDBG grant funds to business owners in the downtown area for façade improvements. Special assessments are recorded when levied and are liens against the property benefited. Special assessments receivable consists of current and delinquent assessments. Amounts not due within one year are reported as deferred inflows of resources in the governmental fund statements. Restricted Assessments Receivable consists entirely of the city's anticipated future revenue from the national opioid settlement through the State of Washington. This revenue will be restricted upon receipt and the receivable will be drawn down each year with annual payments over the next 15 years. The number may vary as more settlements are reached in future years. 4. Internal Balances, Interfund Loan Receivables/Payable and Due To/From Other Funds Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as interfund loans receivable/payable. All other outstanding balances between funds are reported as due to/from other funds. These amounts are eliminated within the governmental activities and business-type activities in the government-wide statement, except for the residual balances outstanding between the governmental activities and business-type activities, which are reported as internal balances. Refer to Note 9 for a detailed summary of interfund activity. 5. Inventories and Prepaid items All city inventories are maintained on a consumption basis of accounting where items are purchased for inventory and charged to the budgetary accounts as the items are consumed. Any material inventories at year-end are included in the balance sheet of the appropriate fund. All inventories are carried at cost on the first in, first out – FIFO basis, with the exception of the Public Works Maintenance shops inventory. The value of this inventory is calculated using the average cost method. The cost of inventories are recorded as an expenditure/expense when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are reported as prepaid items in both the government-wide and fund statements. 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-18 6. Capital Assets General capital assets are those assets not specifically related to activities reported by the proprietary funds. These assets generally result from expenditures in governmental funds or contributions. The city reports these assets in the governmental activities column of the government-wide statement of net position but does not report these assets in the governmental fund financial statements. Capital assets utilized by the propriety funds are reported both in the business-type activities of the government-wide statement of net position and in the proprietary fund statement of net position. All capital assets are valued and capitalized at cost (or estimated historical cost when actual historical cost is unknown) and updated for additions and retirements during the year. Donated capital assets are recorded at their acquisition value as of the date received. The city maintains separate capitalization thresholds by asset category with an estimated useful life in excess of one year. The threshold is $5,000 for all categories except for buildings and structures, which have a threshold of $25,000, and other improvements, which has a threshold of $50,000. Improvements to city assets and infrastructure are capitalized, but the cost of normal maintenance and repairs that do not extend the useful life, or increase capacity or efficiency, are expensed. All capital assets, other than land, right-of-ways, water rights, and construction in progress, are depreciated using the straight-line method over the following estimated useful lives: Amortization on all intangible assets is provided on the straight-line basis over the following useful lives: 7. Other non‐current Assets A portion of notes and special assessments receivable are collectible in greater than one year. This long-term portion of the receivable is reported as another non-current asset. Investment in joint ventures consists of the city’s equity balances and investment in debt of Valley Communications Center, South Correctional Entity and Washington Multi-City Business License and Tax Portal Agency (see also Note 11). Capital Asset Class Estimated Useful Life Buildings and structures, excluding utilities 7-60 years Other improvements 5-80 years Utility plant 10-50 years Machinery and equipment 3-40 years Infrastructure 7-100 years Intangible Asset Class Estimated Service Life Computer software 3-10 years Water rights Indefinite Mitigation bank credits Indefinite Leases 2-21 years Other 4-10 years 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-19 8. Leases Lessee: The city is a lessee for noncancelable leases. The city recognizes a lease liability and an intangible right-to-use lease asset in the government-wide and proprietary fund financial statements. The city recognizes lease liabilities with an initial, individual value of $5,000 or more. At the commencement of a lease, the city initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized using the straight-line basis method over its useful life. Governmental funds recognize a capital outlay and other financing source at the commencement of a new lease. Lease payments in governmental funds are reported as debt service principal and debt service interest expenditures. Key estimates and judgements related to lease include how the city determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The city uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the city generally uses its incremental borrowing rate as the discount rate for leases. This is the rate the lessee would be charged for borrowing the lease payment amounts during the lease term. The lease term includes the noncancelable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the city is reasonably certain to exercise. The city monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lessor: The city is a lessor for noncancelable leases. The city recognizes a lease receivable and a deferred inflow of resources in the government-wide and fund financial statements. At the commencement of a lease, the city initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measure as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term using the (straight-line basis/effective interest method). 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-20 Key estimates and judgements related to lease include how the city determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The city uses its estimated incremental borrowing rate as the discount rate for leases. This is the rate the lessee would be charged for borrowing the lease payment amounts during the lease term. The lease term includes the noncancelable period of the lease. Lease receipts included in the measurement of the lease liability are compose of fixed payments from the lessee. The city monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. 9. Deferred outflows/inflows of resources In addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflow of resources, represents a consumption of net position that applies to a future period and will not be recognized as an outflow (expense/expenditure) until that reporting period. The city has two items that qualify for reporting in this category. Deferred amount on refunding is reported on the government-wide statement of net position and the proprietary fund statement of net position. A deferred amount on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the life of the refunded or refunding debt, whichever is shorter. Deferred amounts related to pensions are differences between actual and projected experience, investment earnings and actuarial assumptions, changes in proportion, and the city’s contributions to pensions subsequent to the measurement date, which was June 30, 2023, provided by the State of Washington. Refer to Note 5 for more information on pensions. In addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time (in prior years this inflow was recognized as “deferred revenue” within the liabilities). The city has four items that it reports as a deferred inflow of resources. Unavailable revenue arises only on the modified accrual basis, in the governmental fund balance sheet. The amount reported in unavailable revenue is comprised of three sources: delinquent municipal court receivables, delinquent photo enforcement receivables, and delinquent property tax receivables. These amounts are deferred and recognized as revenue in the period the amounts become available. On the government-wide statements (accrual basis of accounting) the amounts are considered available and recognized as inflow of resource in the current period. Deferred amount of special assessments is the long-term principal due to the city from special assessment connections. This amount is only reported in the governmental fund balance sheet. Deferred amounts related to pensions are the differences between actual and projected experience, investment earnings and actuarial assumptions, and changes in proportion. Refer to Note 5 for more 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-21 information on pensions. Deferred amounts related to leases is the liability the city takes on when entering into a lease agreement. Refer to Note 13 for more information on leases. 10. Unearned Revenues This account includes amounts collected in advance for services not yet rendered. The amounts are subject to return to the payor in the event the associated services are not performed. 11. Customer Deposits This amount reflects the net monetary liability of customer deposits for special deposit funds. This includes security deposits for lessees, gift certificates for the Maplewood Golf Course, and on account credits. 12. Compensated Absences The city’s policy permits employees to accumulate earned but unused vacation leave benefits, which are eligible for payment upon separation from city service. For employees hired prior to January 1, 1994, a fifty percent cash out of accumulated earned but unused sick leave is also eligible for payment upon separation. The city accrues accumulated unpaid vacation and sick leave (when eligible) when earned (or estimated to be earned) by the employee. The total compensated absences liability is reported on the government-wide statements and in each proprietary fund. 13. Fund Equity Fund equity at the governmental fund level is classified as fund balance. Fund equity for all other reporting is classified as net position. Fund balance represents the difference between the current assets and deferred outflows of resources and current liabilities and deferred inflows of resources in the governmental fund financial statements. Fund balance classifications comprise of a hierarchy based primarily on the extent to which the city is bound to honor constraints on the specific purpose for which amounts in those funds can be spent. Fund balances are classified as follows: a. Nonspendable – items that cannot be spent due to form; inventories, prepaid amounts, long- term loan receivables, or amounts that must be maintained intact legally. b. Restricted – amounts constrained for specific purposes imposed through the judicial process and enabling legislation adopted by the city; or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. c. Committed – amounts constrained by the city council. Only the council can, by ordinance, establish, modify, or rescind constraints on committed fund balances. d. Assigned – constraints imposed by the city council for amounts intended for specific purposes, but do not meet the criteria of restricted or committed. It is the city’s policy that intent of use can be assigned by the city council, or by a designated official, adopted through either the biennial budget ordinance or an amending budget ordinance. For governmental funds, other 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-22 than the General Fund, the residual fund balance that is not restricted or committed is reported as assigned because the use of fund balance, at a minimum, should be used for the purpose of that fund. Additional action does not need to be taken to remove an assignment, whereas additional action is essential to remove a commitment. e. Unassigned – any remaining fund balance in the General Fund that does not meet any of the above criteria. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, not the General Fund, may report a negative unassigned fund balance if expenditures incurred for a specific purpose exceed the amounts of restricted, committed, or assigned amounts to those purposes. 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-23 The following shows the composition of the fund balance in governmental funds for the year ended December 31, 2023: General Municipal Facilities CIP Capital Improvement Other Governmental Total Restricted Police Seizure Funds -$ $ - $ - $ 684,235 $ 684,235 Police CSAM Funds - - - 169,116 169,116 Shop with a Cop 8,917 - - - 8,917 WASPC One Time Legislative Funding 2,547 - - - 2,547 Judicial Capital Improvements 95,563 - - - 95,563 Housing and Supportive Services - - - 11,568,784 11,568,784 Opioid Settlement - Cash 185,426 - - - 185,426 Affordable Housing 283,224 - - - 283,224 Debt Service - - - 252,350 252,350 Summer Lunch Program 3,439 - - - 3,439 AARP/FitLot 661 - - - 661 2021 Veterans, Seniors & Human Services Levy - - - - - Sr Center Advisory Committee 9,174 - - - 9,174 CDBG Loans Outstanding 656,510 - - - 656,510 Tourism Promotion - - - 943,720 943,720 Renton Community Marketing Campaign - - - 15,422 15,422 Cable Communications - - - 369,348 369,348 Facilities Capital Improvements - 342,045 - - 342,045 Park Capital Improvements - 1,874,235 - 679,489 2,553,724 Fire Capital Improvements - - - - - Transportation Capital Improvements - - 14,141,791 2,214,274 16,356,065 REET 1 Capital Projects - 3,768,312 - 2,039,765 5,808,077 REET 2 Captial Projects - 1,409,771 - 3,416,373 4,826,144 Renton School District Impact Mitigation - - - 2 2 Sunset Lane Latecomer Assessment 410,165 - - - 410,165 Community Garden Improvements - 2,483 - - 2,483 Urban Forestry Program - 266,653 - - 266,653 Total Restricted 1,655,626 7,663,499 14,141,791 22,352,878 45,813,794 Committed Public Art 108,882 - - - 108,882 Facilities Capital Improvements - 10,455,504 - - 10,455,504 Economic Development Reserve 2,500,000 - - - 2,500,000 Park Capital Improvements - 2,126,473 - - 2,126,473 Springbrook Wetlands Impact Mitigation - - - 701,041 701,041 Transportation Capital Improvements - - 5,744,060 - 5,744,060 Family First Center - - - - - Total Committed 2,608,882 12,581,977 5,744,060 701,041 21,635,960 Assigned Farmer's Market 94,399 - - - 94,399 Community Services 3,180,717 - - - 3,180,717 Transportation - - - - - Family First Center - 3,779,050 - - 3,779,050 Museum 8,890 - - - 8,890 Leased City Properties 269,450 - - - 269,450 Economic Development Reserve 188,532 - - - 188,532 Debt Service - - - 5,145,092 5,145,092 Street Maintenance 1,806,004 - - - 1,806,004 Misc Capital Projects - 2,012,645 - - 2,012,645 Fire Capital Improvements - - - - - Transportation Capital Improvements - - 318,038 - 318,038 Total Assigned 5,547,992 5,791,695 318,038 5,145,092 16,802,817 Unassigned Unassigned 100,270,628 - - (4) 100,270,624 Total Unassigned 100,270,628 - - (4) 100,270,624 Total fund balances 110,083,128$ 26,037,171$ 20,203,889$ 28,199,007$ 184,523,195$ December 31, 2023 Governmental Fund Balances 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-24 Negative unassigned fund balance - At December 31, 2023, the Fire Capital Improvements Fund reported a negative unassigned fund balance of ($4). Per GASB 54, paragraph 19, there cannot be a negative assigned fund balance; any negative fund balance is to be reported as unassigned. The negative unassigned fund balance is the result of unrealized gains/losses on investments. Fund balance flow assumptions - When multiple categories of fund balance are available for incurred expenditures, it is the city’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance (the total of committed, assigned, and unassigned fund balance). Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Net position - reflects the difference between assets and liabilities, in the government-wide and proprietary fund statement of net position. The component net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by any outstanding balances of any borrowing (ex. bonds or loans and related deferred amounts on refunding) for the acquisition, construction, or improvement of those assets as well as any capital related debt (ex. vouchers payable, accounts payable, retainage payable). The net position is reported as restricted when there are limitations imposed on their use either through enabling legislation adopted by the city or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. There are multiple ways to calculate the restricted net position related to each individual pension plan’s net pension asset. The city chooses to use the method preferred by the Governmental Accounting Standard Board where the restricted net position is equal to the net pension asset; both the deferred inflows and deferred outflows are excluded from the calculation. The balance of the net position is reported as unrestricted. 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-25 The following shows the composition of the restricted net position balances reported in the government-wide and proprietary fund statements for the year ended December 31, 2023: Net position flow assumptions – In order to calculate the amounts to be reported as restricted net position and unrestricted net position on the government-wide and proprietary fund statements, a flow assumption is made. It is the city’s policy to consider restricted net position to have been depleted before unrestricted net position. Minimum fund balance policy – The city council has adopted a financial policy to maintain a minimum level of unrestricted fund balance in the general fund. The target level is set at 12 percent, with a minimum of 8 percent, of general fund operating expenditures. This amount is intended to provide fiscal stability when economic downturns and other unexpected events occur. Stabilization fund policy – The city has adopted a comprehensive stabilization policy that helps provide stability through uncertain times. This allows for temporary cushion and flexibility when needed. The city council, through ordinance, has established the following stabilization reserves: Governmental Activities Business‐Type Activities Restricted Net Position Pensions $ 37,238,781 2,823,311$ Police Seizure Funds 684,235 - Police CSAM Funds 169,116 - Shop with a Cop 8,917 - Affordable Housing 283,224 - Judicial Capital Improvements 95,563 - Housing and Supportive Services 11,568,784 - Opioid Settlement - Cash 185,426 - WASPC One Time Legislative Funding 2,547 - Summer Lunch Program 3,439 - AARP/FitLot 661 - Sunset Lane Latecomer Assessment 410,165 - Sr Center Advisory Committee 9,174 - CDBG Loans Outstanding 656,510 - Tourism Promotion 943,720 - Renton Community Marketing Campaign 15,422 - Cable Communications 369,348 - Park Capital Improvements 2,553,723 - Facilities Capital Improvements 342,045 - Transportation Capital Improvements 16,356,065 - REET 1 Capital Projects 5,808,077 - REET 2 Captial Projects 4,826,144 - Renton School District Impact Mitigation 2 - Kent School District Impact Mitigation - - Community Garden Improvements 2,483 - Urban Forestry Program 266,653 - Opioid Settlement - Receivable 3,122,039 - Debt Service 252,350 2,810,145 Total Restricted Net Position $ 86,174,613 $ 5,633,456 December 31, 2023 Restricted Net Position 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-26 1. Economic development revolving fund reserve: the city has accumulated reserves of $2.5 million for economic development. Expenditure utilizing this reserve will require a two-thirds majority vote of the city council. 2. Catastrophic reserve: the city will maintain a targeted amount of 8 percent for risk management reserves, for catastrophic emergencies. Expenditure utilizing this reserve will require a two- thirds majority vote of the city council. 3. Anti‐recessionary reserve: the city will maintain a targeted reserve equal to 4 percent of the general fund operating expense. Expenditures utilizing this reserve will require a two-thirds majority vote of the city council and must be replenished within three years. 4. Annexation sales tax credit expiration/transition reserve: the city set aside an inflationary reserve to lessen the impact of the loss of sales tax annexation credit in mid-2018; the reserve will continue to be used by $0.9 million each year until depleted. 5. General obligation bond payment reserve: for all councilmanic, general obligation bonds issued after 2013, a one‐year payment reserve shall be established. E. REVENUES, EXPENDITURES, AND EXPENSES 1. Operating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from non-operating revenues and expenses. Operating revenue and expense generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenue of the waterworks utility, solid waste, airport, golf course, and internal service funds are charges to customers for sales and services. The waterworks utility also recognizes water meter installation fees, and wastewater and surface water construction permit fees as operating revenue because these charges are intended to offset the cost of connecting new customers to the system. Operating expense for proprietary funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenue and expense. 2. Program Revenue Amounts reported as program revenue, on the government-wide statement of activities, include: 1) charges for customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operation or capital requirements of a given function. All taxes, included those dedicated to specific purposes, are reported as general revenue rather than program revenue. 3. Capital Contributions Capital contributions reported in the proprietary fund statements and the government-wide statements reflect the value of outside contributions of capital assets (i.e., developers, land donations), capital grants, special assessments, and system development charges. 4. Interfund Activity Exchange transactions between funds are reported as revenue in the selling fund and as an expenditure/expense in the purchasing funds. On the government-wide statement of activities, the 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-27 exchange transactions between the internal service funds and the user funds are eliminated. Flows of cash or goods from one fund to another without a requirement of repayment are reported as interfund transfers in/out. Interfund transfers in/out are reported as other financing sources/uses in the governmental funds and following non‐operating revenues and expenses in the proprietary funds. In the government‐wide statement of activities, transfers between governmental and business‐type activities are reported as general revenue. Transfers between funds in governmental activities are eliminated and transfers between funds in business‐type activities are eliminated. 5.Expenditures/Expenses Expenses in the Government‐wide Statement of Activities are reported by function as a governmental activity (general government, judicial, public safety, utilities, transportation, economic environment, health and human services, culture and recreation), interest on long‐term debt, or business‐type activity (waterworks utility, airport, solid waste utility, or golf course). In the fund financial statements, expenditures of governmental funds are classified by function, debt service principal and interest payments, or purchases of capital items. Proprietary expenditures are classified as operating or non‐operating. The city recovers certain administrative costs through indirect cost allocations to departments city‐ wide. These allocated costs are consolidated and reported by function in the government‐wide statement of activities. NOTE 2. DEPOSITS AND INVESTMENTS Deposits Custodial Credit Risk Custodial Credit Risk is the risk that in the event of a failure of the counterparty to an investment transaction the city would not be able to recover the value of the investment or collateral securities. The city does not currently have a policy regarding deposits concerning custodial credit risk or foreign currency risk. On December 31, 2023, the city had the following balances on deposit with financial institutions: The City’s deposits and certificates of deposit are entirely covered by the Federal Depository Insurance Corporation (FDIC) or held in a multiple financial institution collateral pool administrated by the State of Washington Public Deposit Protection Commission (PDPC). The City’s deposits comply with the guidelines within Chapter 35A.40.030 of the Revised Code of Washington (RCW). Deposits Deposits at 12/31/2023 Bank Deposits 48,585,132$ Non‐negotiable Certificates of Deposit (CD's)16,399,337 Cash with Fiscal Agents 302,597 TOTAL DEPOSITS 65,287,066$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-28 Investments Investments that are not Measured at Fair Value On December 31, 2023, the city had the following investments at amortized cost: The city is a participant in the Local Government Investment Pool authorized by Chapter 294, Laws of 1986, and is managed and operated by the Washington State Treasurer. The State Treasurer is responsible for establishing the investment policy for the pool and reviews the policy annually and proposed changes are reviewed by the LGIP advisory Committee. Investments in the LGIP, a qualified external investment pool, are reported at amortized cost which approximates fair value. The LGIP is an unrated external investment pool. The pool portfolio is invested in a manner that meets the maturity, quality, diversification and liquidity requirements set forth by the GASB Statement No. 79 for external investments pools that elect to measure, for financial reporting purposes, investments at amortized cost. The LGIP does not have any legally binding guarantees of share values. The LGIP does not impose liquidity fees or redemption gates on participant withdrawals. The Office of the State Treasurer prepares a stand-alone LGIP financial report. A copy of the report is available from the Office of the State Treasurer, PO Box 40200, Olympia, Washington 98504-0200, online at http://www.tre.wa.gov. Investments Measured at Fair Value The City measures and records its investments within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The guidelines recognize a three-tiered fair value hierarchy, as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: These are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other than quoted prices that are not observable. Level 3: Unobservable inputs for an asset or liability. On December 31, 2023, the city had the following recurring fair value measurements: Security Type Amortized Cost Local Government Investment Pool (LGIP)208,986,725$ TOTAL INVESTMENTS 208,986,725$ Security Type Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. Agency Securities 78,099,296$ 78,099,296$ Treasury 41,881,586$ 41,881,586$ TOTAL INVESTMENTS 119,980,882$ 119,980,882$ Fair Value Measurements Using 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-29 Valuation techniques to determine fair value should be consistent with one or more of three approaches: the market approach, cost approach, and income approach. The city uses the market approach for the valuation of Significant Other Observable Inputs Investments (Level 2). The market approach to measuring fair value uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities. Using quoted market prices is a technique that is consistent with the market approach. The City invests excess and inactive funds in accordance with the City’s Investment Policy (last updated and approved on February 23, 2009), which complies with the guidelines within Chapter 35A.40.050 of the Revised Code of Washington (RCW). This allows for investment of excess cash and inactive cash, directs that the responsibility for determining available cash for investment is placed upon the department administering the funds, and allows for pooling of the cash provided that the allocation of income is proportionate to the investment of each fund. Currently, the city invests in obligations of the U.S. Government, U.S. agency issues, and Certificates of Deposit with Washington State banks and savings and loan institutions as allowed by RCW. Credit risk. Credit Risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The city invests in US Treasury securities which are considered free of credit risk, and in securities backed by the full faith and credit of the U.S. Government as well as U.S. government sponsored enterprises including Federal Home Loan Mortgage Corporation. Interest Rate Risk. Interest rate risk is the risk that changes in interest rates over time, adversely affecting the fair value of an investment. The City’s portfolio is managed within the parameters established by the Investment Policy, which limits the weighted average maturity of the portfolio to five years. Investment Type Cost Fair Value Moody's S&P Local Government Investment Pool (LGIP)208,986,725$ 208,986,725$ unrated unrated Federal Farm Credit Bank 19,484,926 19,706,389 Aaa AA+ Federal Home Loan Bank 31,674,571 30,428,998 Aaa AA+ Federal National Mortgage Association 18,341,091 18,502,129 Aaa AA+ Federal Home Loan Mortgage Corporation 9,477,463 9,461,780 Aaa AA+ Treasury 42,075,300 41,881,586 Aaa AA+ TOTAL INVESTMENTS 330,040,075$ 328,967,606$ Investment Type Cost Fair Value Average Interest Rate Local Government Investment Pool (LGIP)208,986,725$ 208,986,725$ 2.030% Federal Farm Credit Bank 19,484,926 19,706,389 2.709% Federal Home Loan Bank 31,674,571 30,428,998 2.972% Federal National Mortgage Association 18,341,091 18,502,129 3.245% Federal Home Loan Mortgage Corporation 9,477,463 9,461,780 2.093% Treasury 42,075,300 41,881,586 3.211% TOTAL INVESTMENTS 330,040,075$ 328,967,606$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-30 The City’s Investment Policy directs that the standard of prudence for investment activities shall be the Prudent Investor Standard that states: “Investments shall be made with judgment and care, under circumstances then prevailing, which person of prudence, discretion, and intelligence would use in the management of their own affairs, not for speculation, but for investment purposes, considering the probable safety of their capital as well as the probable income to be derived.” Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. The City diversifies its investment instruments to avoid incurring unreasonable risk inherent with the over-investment of instruments and issuers using the following target distribution as a guide during normal economic times while allowing flexibility when appropriate. The city has agency bonds with Federal Home Loan Bank equal to 9%, Federal Farm Credit Bank equal to 6%, and Treasury equal to 13%. The City’s remaining individual issuers are less than 5% of total investments or are otherwise excluded from this disclosure due to the low-risk nature of the investment. Target Maximum per Policy Instrument Maximum Issuer Maximum U.S. Treasuries 100% 100% U.S. Agencies 75% 50% Certificates of Deposit (within WPDPC) 75% 20% Local Governmental Investment Pool (LGIP) 75% 75% Commercial Paper 25% 5% Custodial Credit Risk – Investments. Custodial credit risk for investments is the risk that, in the event of the failure of the counter party to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. All security transactions, including collateral for repurchase agreements, entered into by the City are conducted on a delivery-versus-payment (DVP) basis and are held in our safekeeping trust account with Principal Bank under terms negotiated by the State of Washington. NOTE 3. PROPERTY TAXES The county treasurer acts as an agent to collect property taxes levied in the county for all taxing authorities. Taxes are levied annually, January 1, on property value listed as of the prior May 31. Assessed values are established by the King County Assessor at 100 percent of fair market value. A revaluation of all property is required every two years; however, King County has the ability to revalue annually. Investment Type 0‐6 months 6 months ‐ 1 year 1‐3 years 3+ years Totals Local Government Investment Pool (LGIP)208,986,725$ -$ -$ -$ 208,986,725$ Federal Farm Credit Bank 9,775,128 - 5,063,818 4,867,442 19,706,389 Federal National Mortgage Association 4,719,534 - 9,485,662 4,296,933 18,502,129 Federal Home Loan Mortgage Corporation - - 9,461,780 - 9,461,780 Federal Home Loan Bank - 4,573,404 14,021,350 11,834,243 30,428,998 Treasury ‐ 4,857,204 18,558,890 18,465,492 41,881,586 TOTAL INVESTMENTS 223,481,387$ 9,430,609$ 56,591,500$ 39,464,110$ 328,967,606$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-31 Property taxes levied by the King County Assessor and collected by the county treasurer become a lien on the first day of the levy year and may be paid in two equal installments if the total amount exceeds $30. The first half of real property taxes is due on April 30 and the balance is due October 31. Delinquent taxes bear interest at the rate of 1 percent per month and are subject to additional penalties if not paid as scheduled. No allowance for uncollectible taxes is established because delinquent taxes are considered fully collectible. At year-end, property taxes are recorded as a receivable with the portion not expected to be collected within 60 days offset by unavailable revenue. During the year, property tax revenues are recognized when cash is received. The tax rate for general City operations is limited to $3.825 per $1,000 of assessed value (RCW 84.52.043), less the actual amount levied by the King County Library System (maximum $0.50/$1,000) and the actual amount levied by the Renton Regional Fire Authority (maximum $1.00/$1,000). Included in this amount, up to $0.225 (22.5 cents) per $1,000 may be designated for contribution to the Firemen’s Pension Fund. If a report by a qualified actuary on the condition of the Firemen’s Pension Fund establishes that this amount (or portion of) is not necessary to maintain the actuarial soundness of the fund, the amount can be used for any other municipal purpose (RCW 41.16.060). The maximum statutory rate for 2023, after reductions noted above, was $2.95764. The tax rate limit may be reduced for any of the following reasons: 1. The Levy Limit: the levy limit calculation applies to a taxing district’s budget, and not to increases in the assessed value or tax bill of individual properties. Initiative 747 which restricted individual taxing districts from collecting, in any year, more than a one percent increase in their regular, non-voted, levy over the highest levy amount since 1985 was overturned by the courts. However, during 2007, the state legislature reinstated this limit with the passage of HB2416. New construction, annexations, and excess levies approved by the voters are not included in the levy limit calculation. If the assessed valuation increases by more than one percent due to revaluation, the levy rate will be decreased. 2. The One Percent Constitution Limit: The Washington State Constitution limits the regular (non- voted) combined property tax rate applied to an individual’s property to one percent ($10 per $1,000) on the market valuation. Voters may approve special levies that are added to this figure. If the taxes of all districts exceed this amount, each is proportionately reduced until the total is at or below the one percent limit. 3. The City may voluntarily levy taxes below the legal limit. Special levies approved by the voters are not subject to the above limitations. There is currently no excess levy for General Obligation Bond debt. The city’s regular levy per the King County Assessor’s 2023 Annual Report is $0.88303. 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-32 NOTE 4. CAPITAL ASSETS AND DEPRECIATION Governmental activities capital asset activity for the year ended December 31, 2023, was as follows: Depreciation and amortization were charged to the functions as follows: Beginning Ending Balance Increases Decreases Reallocation Balance Governmental activities : Capital assets, not being depreciated: Land and land improvements $ 216,858,805 $ 2,520,625 $ (185,051) $ 430,249 $ 219,624,628 Construction in progress 63,032,240 $ 18,940,294 - $ (43,545,861) 38,426,673 Total capital assets, not being depreciated 279,891,045 21,460,919 (185,051) (43,115,612) 258,051,301 Capital assets, being depreciated: Buildings and structures $ 86,047,725 $ 5,223,240 $ - $ 14,603,285 $ 105,874,250 Other improvements $ 344,226,295 $ 11,615,109 $ (1,877,219) $ 28,225,116 $ 382,189,301 Machinery and equipment $ 47,257,365 $ 3,332,834 $ (3,364,824) $ 287,211 $ 47,512,586 Total capital assets being depreciated $ 477,531,385 $ 20,171,183 $ (5,242,043) $ 43,115,612 $ 535,576,137 Less accumulated depreciation for: Buildings and structures $ (48,282,609) $ (2,332,322) $ - $ - $ (50,614,931) Other improvements $(141,224,424) $ (8,830,233) $ 1,837,712 $ - $ (148,216,945) Machinery and equipment $ (32,386,414) $ (2,851,937) $ 3,276,814 $ - $ (31,961,537) Total accumulated depreciation $(221,893,447) $ (14,014,492) $ 5,114,526 $ - $ (230,793,413) Total capital assets, being depreciated, net $ 255,637,938 $ 6,156,691 $ (127,517) $ 43,115,612 $ 304,782,724 Intangible Assets: Intangible assets, not being amortized $ 697,688 $ - $ (6,336) $ - $ 691,352 Intangible assets, being amortized $ 5,472,407 $ 1,714,125 $ (1,366,626) $ - $ 5,819,906 Less accumulated amortization $ (5,147,611) $ (391,103) $ 1,366,626 $ - (4,172,088) Total intangible asset, being amortized, net $ 324,796 $ 1,323,022 $ - $ - $ 1,647,818 Total Intangible assets $ 1,022,484 $ 1,323,022 $ (6,336) $ - $ 2,339,170 Governmental activities capital assets, net $ 536,551,467 $ 28,940,632 $ (318,904) $ - $ 565,173,195 Depreciation Amortization Total General Government 1,220,762 3,974 1,224,736 Judicial - - - Public Safety 480,568 8,490 489,058 Physical Environment 58,148 - 58,148 Transportation 7,223,203 - 7,223,203 Economic Development 482,269 - 482,269 Culture and Recreation 2,123,033 - 2,123,033 Health and Human Services 13,275 - 13,275 Internal Service Funds (General Governmental) 2,413,234 378,639 2,791,873 $ 14,014,492 $ 391,103 $ 14,405,595 Total‐Governmental Activities Governmental Activities 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-33 Business-type activities capital asset activity for the year ended December 31, 2023, was as follows: Depreciation and amortization were charged to the functions as follows: Beginning Ending Balance Increases Decreases Reallocation Balance Business‐type activities: Capital assets, not being depreciated: Land and land improvements $ 6,143,690 $ - $ - $ - $ 6,143,690 Construction in progress 30,559,712 14,761,339 - (23,583,381) 21,737,670 Total capital assets, not being depreciated 36,703,402 14,761,339 - (23,583,381) 27,881,360 Capital assets, being depreciated: Buildings and structures 17,576,346 - - - 17,576,346 Other improvements 467,651,446 2,436,569 (910,828) 23,535,322 492,712,509 Machinery and equipment 3,685,919 282,913 (450,225) 48,059 3,566,666 Total capital assets being depreciated 488,913,711 2,719,482 (1,361,053) 23,583,381 513,855,521 Less accumulated depreciation for: Buildings and structures (10,483,255) (395,835) - - (10,879,090) Other improvements (194,597,545) (10,068,459) 525,432 - (204,140,572) Machinery and equipment (2,728,092) (192,735) 419,719 - (2,501,108) Total accumulated depreciation (207,808,892) (10,657,029) 945,151 - (217,520,770) Total capital assets, being depreciated, net 281,104,819 (7,937,547) (415,902) 23,583,381 296,334,751 Intangible Assets: Intangible assets, not being amortized 811,000 - - - 811,000 Intangible assets, being amortized 556,855 - - - 556,855 Less accumulated amortization (525,529) (5,926) - - (531,455) Total intangible asset, being amortized, net 31,326 (5,926) - - 25,400 Total Intangible assets 842,326 (5,926) - - 836,400 Business‐type activities capital assets, net $ 318,650,547 $ 6,817,866 $ (415,902) $ - $ 325,052,511 Depreciation Amortization Total Waterworks 9,350,846 3,809 9,354,655 Airport 1,006,951 2,117 1,009,068 Golf Course 299,232 - 299,232 $ 10,657,029 $ 5,926 $ 10,662,955 Total‐Business‐Type Activities Business‐Type Activities 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-34 At the end of 2023, a total of 52 projects comprises the Construction in Progress. Upon completion, the projects will be reallocated to their appropriate categories. Construction commitments as of December 31, 2023, are as follows: Governmental Activities Projects:Construction in Progress Remaining Commitment Bronson Bridge 3,333,460$ 544,176$ Cedar Ave S Sidewalk 42,264 1,059,927 Community Center Wi-Fi 186,592 813,408 Downtown Streetscape 2,058,319 926,448 Downtown Wayfinding Signage 113,503 140,368 Highlands to Landing Pedestrian Lighting 710,666 97,139 Henry Moses Aquatic Center 80,282 1,957,469 Houser Way N. Bridge 116,175 815,825 I-405/NE 44th St Roundabout Greenscape 26,591 39,409 Kenyon Property Building 73,991 - Kenyon Property Instahot Water Heater 10,555 - Liberty Park Improvement 18,631 1,184,050 May Creek Park 7,524 192,476 May Creek Trail South 188,291 1,927,806 Park Ave Extension 9,435,072 1,841,841 Pavilion Remodel 150,317 3,875,872 Police Brazos Parking Citation System 8,586 - Rainier Ave S/N Phase 4 18,432,581 20,477,359 Regis Park Athletic Field Expansion 124,044 - Renton Connector 461,006 1,320,410 RTC Burnett Ave S Sidewalk Rehabilitation 95,849 609,151 S. 2nd Street Conversion 12,719 1,539,237 So 7th St 350,147 534,853 Safe Routes to Transit 1,923,483 3,216 Sunset Blvd Corridor 341,671 - Williams Ave Public Art 18,634 53,009 Williams Bridge 104,989 1,167,311 116th Street Sidewalk 731 999,269 Total governmental activities 38,426,673$ 42,120,029$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-35 Springbrook Creek Wetland and Habitat Mitigation Bank The city entered into an agreement with Washington State Department of Transportation to jointly share in the development, construction, maintenance and operation of the Springbrook Creek Wetland and Habitat Mitigation Bank. Each agency has contributed toward the establishment of the Bank and mitigation credits earned were split evenly between the two agencies. Credits were earned over a 10- year period as certain performance measures were met and are available for use by the city in lieu of performing mitigation measures otherwise required for certain capital projects or the city may choose to sell the credits to external developers. The city assumed site management and monitoring costs at the end of the 10-year performance period (2021) and is obligated to maintain and monitor the wetland in perpetuity, which includes ensuring that functional benefits of the mitigation activities are not degraded, ensuring long-term protection of wetland and buffer areas, and maintaining native plant communities and wildlife habitat diversity. Asset Retirement Obligation The city completed a thorough review of all tangible capital assets to determine if there are any legally enforceable liabilities associated with the retirement of the assets, as required by GASB Statement 83, Asset Retirement Obligation. The Waterworks Utility has ten water wells that have regulatory requirements associated with decommissioning. The assets have no foreseeable disposition, the city has no intent of decommissioning the wells, and there is no incurrence of external or internal obligating events that would require the city to record an Asset Retirement Obligation at this time. For this reason, Business‐Type Activities Projects:Construction in Progress Remaining Commitment Airport Office Rehab 1,028,657$ 2,035,794$ Burnett Ave S/Williams Ave S 558,013 2,890,784 Burnette Ave S Water Main Impr 9,284 359,363 East Valley Road Storm System Improvement 119,781 241,480 Force Main Rehabilitation/Replacement 536,202 2,095,309 Hardie Ave S Underpass Storm System Improvement 74,995 650,070 Highlands 435 - Resevoirs Replacement 2,620,590 20,637,303 Windsor Hills Water Utility Improvement 499,082 4,918,837 Lift Station Rehabilitation 647,816 1,996,251 Monroe Ave NE & N 2nd St Infiltration System 6,457,893 15,028,768 NE 12th St Water Main Replacement 170,883 1,766,628 Panther Creek Culvert Replacement 234,086 464,564 Rainier Ave S Road & Utility Improvements 2,030,075 669,925 Rainier Ave/Oakesdale Ave Pump Station Generator 57,095 399,012 Renton Sewer Replacement 380,576 2,610,377 SE 172nd St/125th Ave SE Storm Sys 643,743 3,106,041 Sunset Gardens Water System Improvements 1,021,544 501,404 Taxiway Alpha Rehabilitation 899,961 3,015,323 Thunder Hills Sanitary 2,251,840 1,518,208 Water Pump Stations Affixed Emerg Generator 122,302 762,221 Water Pump Stations Rehabilitation 912,032 1,235,587 Windsor Hills Storm System Utility Improvement 34,133 2,375,597 Windsor Hills Utility Improvement 241,284 229,823 Windwdookd Div. III Pond Chain Link Fence & Gate 185,803 171,063 Total business‐type activities 21,737,670$ 69,679,732$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-36 an asset retirement obligation has not been recognized in the Proprietary Funds Statement of Net Position. If it is determined that the wells need to be retired in the future, the current estimated cost of doing so is approximately $1.15M. The city also has two underground fuel storage tanks included in general governmental assets. The tanks are expected to be replaced with new tanks when they exhaust their useful lives. Based on the regulations and statues required by Department of Ecology, WAC-173-360A-0810, the estimated lesser cost to decommission the tanks is $150,000. There is no incurrence of external or internal obligating events that would require the city to record an Asset Retirement Obligation at this time. For this reason, an asset retirement obligation has not been recognized in the Government-wide Statement of Net Position. When the tanks are replaced in the future, an asset retirement obligation will be recorded at that time. NOTE 5. PENSION PLANS A. State Sponsored Pension Plans For purposes of measuring the net pension liability/asset, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plans and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the State of Washington Department of Retirement Systems (DRS). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. General Information about the Pension Plans The city’s full-time and qualifying part-time employees are eligible to participate in one of the following statewide retirement systems administered by the Washington State Department of Retirement Systems:  Public Employees’ Retirement System (PERS) Plans 1, 2, and 3  Law Enforcement Officers’ and Firefighters’ Retirement System (LEOFF) Plans 1 and 2  Public Safety Employees’ Retirement System (PSERS) Plan 2 The Department of Retirement Systems (DRS), a department within the primary government of the State of Washington, issues a publicly available annual comprehensive financial report (AFCR) that includes financial statements and required supplementary information for each plan. The DRS ACFR may be obtained by contacting the Washington State Department of Retirement Systems, P.O. Box 48380, Olympia, WA 98504-8380; or online from the DRS website at www.drs.wa.gov. Actuarial assumptions. The total pension liability was determined using the following actuarial assumptions.  Inflation: 2.75% total economic inflation; 3.25% salary inflation 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-37  Salary increases: In addition to the base 3.25% salary inflation assumption, salaries are also expected to grow by promotions and longevity.  Investment rate of return: 7.00% Total pension liability for each of the plans was determined using the most recent actuarial valuation completed in 2023 with a valuation date of June 30, 2022. The actuarial assumptions used were based on the results of the 2013-2018 Demographic Experience Study report and the 2021 Economic Experience Study. Methods did not change from the prior contribution rate setting June 30, 2021 Actuarial Valuation Report (AVR). There were also the following assumption changes:  The Office of the State Actuary (OSA) made adjustments to TRS Plan 1 assets, LEOFF Plan 1 / 2 assets, and LEOFF participant data to reflect certain material changes occurring after the June 30, 2022, measurement date. Mortality rates were developed using the Society of Actuaries PUB. H-2010 mortality rates as the base table. OSA applied age offsets to the base table to better tailor the mortality rates to the demographics of each plan. The long-term MP-2017 generational improvement scale was applied to project mortality rates for every year after the 2010 base table. Mortality rates are applied on a generational basis meaning each member is assumed to receive additional mortality improvements in each future year, throughout his or her lifetime. The long-term expected rate of return on pension plan investments was determined using a building- block method in which the Washington State Investment Board (WSIB) used a best estimate of expected future rates of return (expected returns net of pension plan investment expense but including inflation) to develop each major asset class. Those expected returns make up one component of WSIB’s Capital Market Assumptions (CMAs). The CMAs contain the following three pieces of information for each class of assets the WSIB currently invest in:  Expected annual return  Standard deviation of the annual return  Correlations between the annual returns of each asset class with every other asset class The WSIB uses the CMAs and their target asset allocation to stimulate future investment returns over various time horizons. The long-term expected rate of return of 7.0% approximately equals the median of the simulated investment returns over a fifty-year time horizon, adjusted to remove or dampen any short-term changes to WSIB’s CMAs that aren’t expected over the entire fifty-year measurement period. 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-38 Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of June 30, 2023, are summarized in the following table: Asset Class Target Allocation Long-Term Expected Real Rate of Return Fixed Income 20.00% 1.50% Tangible Assets 7.00% 4.70% Real Estate 18.00% 5.40% Global Equity 32.00% 5.90% Private Equity 23.00% 8.90% The inflation component used to create the table above is 2.20% and represents WSIB’s most recent long-term estimate of broad economic inflation. Discount rate. The discount rate used to measure the total pension liability was 7.00% for all plans. To determine the discount rate, an asset sufficiency test was completed to test whether each pension plan’s fiduciary net position was sufficient to make all projected future payments for current plan members. Based on the assumptions described in OSA’s certification letter within the DRS annual report, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return of 7.00% on pension plan investments was applied to determine the total pension liability. Sensitivity of the Net Pension Liability/(Asset) to Changes in the Discount Rate. The following presents the city’s proportionate share of the net pension liability/(asset), calculated using the discount rate of 7.00%, as well as what the net pension liability/(asset) would be if it were calculated using a discount rate that is one percentage point lower (6.00%) or one percentage point higher (8.00%) than the current rate. Collective Net Pension Liability/(Asset) The collective net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022, with the results rolled forward to June 30, 2023, using standard update procedures. Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30, 2023, are used as the basis for determining each employer’s proportionate share of the collective pension amounts reported by the DRS in the Schedules of Employer and Non-employer Allocations for all plans except LEOFF Plan 1. LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF Plan 1 from 1971 through 2000 and the retirement benefit payments in fiscal year 2023. Historical data was obtained from a 2011 study by the office of the State Actuary (OSA). In the fiscal year 2023, the State of Washington contributed 87.12% of LEOFF Plan 1 employer contributions and all other employers 1% Decrease 6.00% Current Discount Rate 7.00% 1% Increase 8.00% PERS Plan 1 3,189,149,000$ 2,282,732,000$ 1,491,643,000$ PERS Plan 2/3 4,457,809,000$ (4,098,683,000)$ (11,128,382,000)$ PSERS Plan 2 164,422,000$ (106,039,000)$ (319,492,000)$ LEOFF Plan 1 (2,631,763,000)$ (2,968,024,000)$ (3,259,614,000)$ LEOFF Plan 2 397,143,000$ (2,398,598,000)$ (4,686,672,000)$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-39 contributed the remaining 12.88% of employer contributions. LEOFF Plan 1 is fully funded and no further employer contributions have been required since June 2000. If the plan becomes underfunded, funding of the remaining liability will require new legislation. The allocation method the plan chose reflects the projected long-term contribution effort based on historical data. At June 30, 2023, the city’s proportionate share of the collective net pension assets/liabilities was as follows: Public Employees’ Retirement System (PERS) Plan description. PERS was established by the state legislature in 1947 under the Revised Code of Washington (RCW) chapter 41.40. PERS is a multiple-employer cost-sharing retirement system. Membership in the system includes elected officials, state employees, employees of the Supreme, Appeals, and Superior Courts (other than judges currently in a judicial retirement system); employees of legislative committees; community and technical colleges, college and university employees not in national higher education retirement programs; judges of district and municipal courts; and employees of local governments. PERS consists of three plans. PERS participants, who joined the PERS system by September 30, 1977, are Plan 1 members. Plan 1 is closed to new members. Those who joined on or after October 1, 1977; and by either, February 28, 2002, for state and higher education employees, or August 31, 2002 for local government employees, are Plan 2 members unless they exercise an option to transfer their membership to Plan 3. PERS participants joining the system on or after March 1, 2002, for state and higher education employees, or September 1, 2002 for local government employees, have the irrevocable option of choosing membership in either PERS Plan 2 or PERS Plan 3. The option must be exercised within 90 days of employment. An employee is reported in Plan 2 until a choice is made. Employees who fail to choose within 90 days default to PERS Plan 3. Benefits provided. PERS Plan 1 provides retirement, disability, and death benefits. Retirement benefits are determined as two percent of the member’s average final compensation (AFC) times the member’s years of service. The AFC is the average of the member’s 24 highest consecutive service months. Members are eligible for retirement from active status at any age with at least 30 years of service, at age 55 with at least 25 years of service, or at age 60 with at least five years of service. Members retiring from active status prior to the age of 65 may receive actuarially reduced benefits. Retirement benefits are actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non-duty disability payments, an optional cost-of-living adjustment (COLA), and a one-time duty-related death benefit, if found eligible by the Department of Labor and Industries. PERS 1 members were vested after the completion of five years of eligible service. The plan was closed to new entrants on September 30, 1977. Proportionate Share Proportionate Share Change in 6/30/2022 6/30/2023 Proportion PERS Plan 1 0.273106%0.264064%-0.009042% PERS Plan 2/3 0.352756%0.337498%-0.015258% PSERS Plan 2 0.047808%0.055615%0.007807% LEOFF Plan 1 0.249474%0.249031%-0.000443% LEOFF Plan 2 0.420420%0.446469%0.026049% 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-40 PERS Plan 2/3 provides retirement, disability, and death benefits. Retirement benefits are determined as two percent of the member’s average final compensation (AFC) times the member’s years of service for Plan 2 and 1 percent of AFC for Plan 3. The AFC is the average of the member’s 60 highest-paid consecutive service months. There is no cap on years of service credit. Members are eligible for retirement with a full benefit at 65 with at least five years of service credit. Retirement before age 65 is considered an early retirement. PERS Plan 2/3 members who have at least 20 years of service credit and are 55 years of age or older, are eligible for early retirement with a benefit that is reduced by a factor that varies according to age for each year before age 65. PERS Plan 2/3 members who have 30 or more years of service credit and are at least 55 years old can retire under one of two provisions:  With a benefit that is reduced by three percent for each year before age 65; or  With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return-to-work rules. PERS Plan 2/3 members hired on or after May 1, 2013 have the option to retire early by accepting a reduction of five percent for each year of retirement before age 65. This option is available only to those who are age 55 or older and have at least 30 years of service credit. PERS Plan 2/3 retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other PERS Plan 2/3 benefits include duty and non-duty disability payments, a cost-of-living allowance (based on the CPI), capped at three percent annually and a one-time duty related death benefit, if found eligible by the Department of Labor and Industries. PERS 2 members are vested after completing five years of eligible service. Plan 3 members are vested in the defined benefit portion of their plan after ten years of service; or after five years of service if 12 months of that service are earned after age 44. PERS Plan 3 defined contribution benefits are dependent on employee contributions and investment earnings on those contributions. PERS Plan 3 members choose their contribution rate upon joining membership and have a chance to change rates upon changing employers. As established by statute, Plan 3 required defined contribution rates are set at a minimum of 5 percent and escalate to 15 percent with a choice of six options (A-F). If Plan 3 members do not choose a contribution rate, it will default to option A which is 5%. Employers do not contribute to the defined contribution benefits. PERS Plan 3 members are immediately vested in the defined contribution portion of their plan. The Judicial Benefit Multiplier (JBM) Program began January 1, 2007. This program gave eligible justices and judges an option to increase the benefit multiplier used in their retirement benefit calculation for their judicial service period of employment. Beginning January, 2007, any justice or judge who was in a judicial position at that time could choose to join JBM. Any justice or judge elected or appointed to office on or after January 1, 2007, who elects to join DRS membership will also be mandated into JBM. If they have already established membership in PERS or TRS Plan 1 they will rejoin that plan, but if they have never had membership they will be enrolled as a member of both PERS Plan 2 and JBM. Contributions. PERS defined benefit retirement benefits are financed from a combination of investment earnings and employer and employee contributions. Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates, Plan 2 employer and employee contribution rates, and Plan 3 employer contribution rates. The methods used to determine contribution requirements are established under state statute. 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-41 The required contribution rates, expressed as a percentage of covered payroll, were as follows: Employer contributions were $1,672,293, $2,512,374, and $600,151 for Plans 1, 2, and 3, respectively. Public Safety Employee’s Retirement System (PSERS) Plan description. The PSERS system was created by the 2004 Legislature and became effective July 1, 2006 under RCW 41.37. PSERS is a multiple-employer cost-sharing retirement system comprised of a single defined benefit plan, PSERS Plan2. PSERS membership includes full-time employees meeting specific eligibility criteria that are employed by Department of Corrections, Department of Natural Resources, Gambling Commissions, Liquor Control Board, Parks and Recreation Commission, Washington State Patrol, Washington state counties, corrections departments of Washington state cities except for Seattle, Tacoma, and Spokane, or correctional entities formed by PSERS employers under the Interlocal Cooperation Act. Benefits provided. PSERS provides retirement, disability, and death benefits to eligible members. PSERS members are vested after an employee completes five years of eligible service, PSERS members may retire at the age of 65 with five years of service, or at the age of 60 with at least ten years of PSERS service credit, or at age 53 with twenty years of service with a monthly benefit of two percent of the average final compensation (AFC). A cost-of-living allowance (COLA) is granted based on the Consumer Price Index, capped at three percent annually. The AFC is the average of the member’s 60 highest paid consecutive months. PSERS members have the option to retire early with reduced benefits. PSERS members meeting specific eligibility requirements have options available to enhance their retirement benefits. Some of these options are available to their survivors, generally with reduced benefits. Contributions. PSERS defined benefit retirement benefits are financed from a combination of investment earnings and employer and employee contributions. Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee contribution rates. The employer and employee contribution Required Contribution Rates Employer Employee Plan 1 Plan 2 Plan 3 Plan 1 Plan 2 Plan 3 PERS Members not participating in JBM State agencies, local governmental units 10.21% 10.21% 10.21% 6.00% 6.36% ** Administrative fee 0.18% 0.18% 0.18% Total 10.39% 10.39% 10.39% * Members participating in JBM Local governmental units 10.21% 10.21% 10.21% 12.26% 15.90% 7.50%*** Administrative fee 0.18% 0.18% 0.18% Total 10.39% 10.39% 10.39% * * Plan 3 defined benefit portion only. ** Variable from 5% to 15% based on rate selected by the member. *** Minimum rate. 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-42 rates for Plan 2 are developed by the Office of the State Actuary to fully fund Plan 2. The methods used to determine the contribution requirements are established under state statute. The required contribution rates, expressed as a percentage of covered payroll, were as follows: Employer contributions to PSERS Plan 2 were $28,681. Law Enforcement Officers’ and Firefighters’ Retirement System (LEOFF) Plan description. LEOFF was established by the state legislature in 1970 under the Revised Code of Washington (RCW) chapter 41.26. LEOFF is a multiple-employer cost-sharing retirement system. Membership in the system includes all full-time, fully compensated, local law enforcement commissioned officers, firefighters, and as of July 24, 2005, emergency medical technicians. LEOFF membership is comprised primarily of non-state employees, with Department of Fish and Wildlife enforcement officers who were first included effective July 27, 2003, being an exception. LEOFF consists of two separate defined benefit plans. LEOFF participants who joined the system by September 30, 1977, are Plan 1 members. Plan 1 is closed to new members. Those who joined on or after October 1, 1977, are Plan 2 members. Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established by Initiative 790 to provide governance of LEOFF Plan 2. The Board’s duties include adopting contribution rates and recommending policy changes to the Legislature for the LEOFF Plan 2 retirement plan. Benefits provided. LEOFF plans provide retirement, disability, and death benefits to eligible members. LEOFF Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members are eligible for retirement with five years of service at the age of 50. The benefit per year of service calculated as a percent of final average salary (FAS) is as follows:  20+ years of service – 2.0% of FAS  10-19 years of service – 1.5% of FAS  5-9 years of service – 1% of FAS A cost-of-living allowance (COLA) is granted based on the Consumer Price Index. LEOFF Plan 2 members are vested after the completion of five years of eligible service. Plan 2 members are eligible for retirement at the age of 53 with five years of service, or at age 50 with twenty years of service. Plan 2 members receive a benefit of two percent of the FAS per year of service. FAS is based on the highest consecutive 60 months. A COLA is granted based on the Consumer Price Index, capped at three percent annually. Required Contribution Rates Employer Employee Plan 2 Plan 2 PSERS State agencies, local governmental units 10.45% 6.60% Administrative fee 0.18% Total 10.63% 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-43 LEOFF members have the option to retire early with reduced benefits. LEOFF members meeting specific eligibility requirements have options available to enhance their retirement benefits. Some of these options are available to their survivors, generally with reduced benefits. Contributions. LEOFF defined benefit retirement benefits are financed from a combination of investment earnings, employer and employee contributions, and a special funding situation in which the state pays through state legislative appropriations. Employer and employee contribution rates are developed by the Office of the State Actuary to fully fund the plans. Starting on July 1, 2000, Plan 1 employers and employees are not required to contribute as long as the plan remains fully funded. Plan 2 employers and employees are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board. The methods used to determine contribution requirements are established under state statute. The required contribution rates, expressed as a percentage of covered payroll, were as follows: Employer contributions to LEOFF Plan 2 were $998,109. B. Firefighters’ Pension The city is the administrator of the Firefighters’ Pension Plan for all firefighters employed prior to March 1, 1970. The Firefighters’ Pension Plan is included within the City of Renton’s statements as a pension trust fund. There is no separate GAAP-based audited report. A schedule of employer contributions, prepared by Milliman, Inc. is included in the Required Supplemental Information section. Additional information from the actuarial report prepared for the Firefighters’ Pension Plan, by Milliman, Inc., may be obtained by contacting the City of Renton, Finance Division, 1055 South Grady Way, Renton, WA 98057. Plan Description - The Firefighters’ Plan (Plan) is a closed, single-employer defined benefit pension plan administered by the City of Renton through the firefighters’ pension board. The plan provides pensions for firefighters that were employed prior to March 1, 1970, when the LEOFF retirement system was established. The firefighters’ pension board consists of five members: the Mayor who serves as chair of the board, the chairperson of the Council Finance Committee, and three members elected by secret ballot of the retired firefighters for two-year terms. Required Contribution Rates Employer Employee Plan 1 Plan 2 Plan 1 Plan 2 LEOFF Local governmental units N/A 5.12% N/A 8.53% Administrative fee 0.18% 0.18% Total 0.18% 5.30% N/A Indicates data not applicable. 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-44 Plan Membership – Membership is limited to active members of the Firefighters’ Pension Plan (FPP) as of March 1, 1970. On that date, the Washington Law Enforcement Officers’ and Firefighters’ System (LEOFF) was established. The plan is closed to new members. At December 31, 2023, FPF membership consisted of the following: Benefits Provided - All benefit terms are in statutes RCW 41.16, 41.18, and 41.26. The Firefighters’ Pension Plan (FPP) provides retirement, disability, and death benefits. Each firefighter in service on March 1, 1970 receives the greater of the benefit payable under the Washington Law Enforcement Officers’ and Firefighters’ Retirement (LEOFF) System and the benefits available under the provisions of prior law. Where benefits under the old law exceed those under the new law for any firefighter, the excess benefits are paid from the FPF of the city employing the member on March 1, 1970. All members are retired and drawing benefits. Benefit terms provide for cost-of-living adjustments to each member’s retirement benefit. There are two types of increases: escalation by salary in proportion to current salary of rank from which the firefighter retired or increase proportionate to the increase in the Seattle-area consumer price index, with the change computed annually. Regardless of the change in the consumer price index, benefits are increased at least two percent each year. The former applies to firefighters who retired from service after 1969, their survivors, and to firefighters who retired from duty disability (but not their survivors) after 1961. The latter applies to all other types of monthly benefits. Benefits and refunds of the Plan are recognized when due and payable in accordance with the terms of the Plan. For 2023, $253,150 was paid for pension benefit payments. Contributions. As long as the FPP provides for benefits to covered members, the city will be eligible to receive a share of the State’s distribution of the fire insurance premium taxes. The amount the city receives is 25% of all monies received by the State from taxes on fire insurance premiums. Contributions can also come from taxes paid pursuant to the provisions of RCW 41.16.060. This statute requires that each municipality levy up to $0.45 (only $0.225 of which can be in excess of the property tax limit pursuant to RCW 84.52.043) per $1,000 of assessed valuation, based on reports by a qualified actuary, to maintain the fund. 2023 employer contributions to the Firefighters’ Pension Plan were $199,566. Investment Policy – The pension plan’s policy in regard to the allocation of invested assets is established and may be amended by a majority vote of its members. It is the policy of the FPP board to pursue an investment strategy that emphasizes prudent and professional standards. The primary investment requirements, in order of priority, are safety, compliance, liquidity, and return on investment. The Board has designated daily operations, internal controls, and investment decisions to the city’s finance director. No significant investment policy changes were made during the reporting year. Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. Rate of Return – For the year ended December 31, 2023, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 4.30%. The money-weighted Inactive employees or beneficiaries currently receiving benefits 22 Inactive employees or beneficiaries receiving full retirement through LEOFF 2 Total 24 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-45 rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Concentrations – For the year ended December 31, 2023, 17.02% of the plan’s fiduciary net position was invested in US Federal Agency Securities, 3.57% was invested in certificates of deposit, 9.13% was invested in US Treasury, and 4.40% was invested in US Treasury Strips. Net Pension Liability/(Asset) The city’s net pension liability was measured as of December 31, 2023, and the total pension liability used to calculate the net pension liability/(asset) of $(8,069,845) was determined by an actuarial valuation as of that date. The plan’s fiduciary net position of $10,267,485 is 467% of the plan’s total pension liability at December 31, 2023. Actuarial assumptions. The total pension liability was determined by an actuarial valuation as of December 31, 2023, using the following actuarial assumptions.  Inflation 2.50%  Salary increases 3.50%  Investment rate of return 4.00%  Actuarial cost method Entry age normal Mortality rates were based on the Pub-2010 Mortality Table (headcount-weighted) with ages set back one year for males is used for healthy annuitants. Pub-2010 Safety Disabled Mortality Table is used for disabled annuitants. A blend of rates from Pub-2010 Mortality Tables for contingent annuitants and Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability (Asset) (a) - (b) Balances at December 31,2022 2,366,873$ 9,909,380$ (7,542,507)$ Changes for the Year Interest on total pension liability 84,055 - 84,055 Effect of economic/demographic gains or losses (2,678) - (2,678) Effect of assumptions chages or inputs 2,541 - 2,541 Benefit payments (253,151) (253,151) - Contributions from state fire insurance premium tax - 199,566 (199,566) Net investment income - 425,290 (425,290) Administrative expenses - (13,600) 13,600 Net Changes (169,233) 358,105 (527,338) Balances at December 31,2023 2,197,640$ 10,267,485$ (8,069,845)$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-46 retirees is used for surviving spouses. Mortality rates are projected forward generationally suing the ultimate rates in Projection Scale MP-2017. The long-term expected rate of return on pension plan investments was determined by combining expected inflation to expected long term real return and reflecting expected volatility and correction. We used the weighted expected returns of the city’s portfolio of cash, US Treasuries (to be held to maturity), and receivables to develop the long-term expected rate of return. The best-estimate range for the long-term expected rate of return for each major asset class included in the pension plan’s target asset allocation as of December 31, 2023, are summarized in the following table: Discount rate. The discount rate used to measure the total pension liability was 4%. The projection of cash flows used to determine the discount rate assumed city contributions were equal to revenue received from Fire Insurance premiums and the amount received would increase at the inflation rate of 2.50%. Based on this assumption, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payment of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension liability of the city, calculated using the discount rate of 4.0%, as well as what the city’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower (3.0%), or one percentage point higher (5.0%), that the current rate. Asset Class Index Long-Term Expected Real Rate of Return Cash BAML 90-Day T-Bills 0.81% Core Fixed Income Bloomberg Barclays Aggregate 2.20% US Treasury Bonds Bloomberg US Treasury TR USD 1.69% US Long STRIPS Bloomberg US Strips 20+ Yr TR USD 4.58% Mortgages Bloomberg US MBS TR USD 2.60% Assumed Inflation - Mean 2.50% Long-Term Expected Rate of Return 4.00% 1% Decrease 2.75% Current Discount Rate 3.75% 1% Increase 4.75% Total Pension Liability 2,338,984$ 2,197,640$ 2,071,002$ Fiduciary Net Position 10,267,485 10,267,485 10,267,485 Net Pension Liability (7,928,502) (8,069,845) (8,196,483) 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-47 C. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions As of June 30, 2023, the city reported its proportionate share of net pension liability/(asset) as follows: The amount of the liability/(asset) reported for LEOFF Plan 1 and LEOFF Plan 2 reflects a reduction for the city’s collective liability to be paid by the State. The city recognized $643,542as contribution revenue for the State’s on behalf payment for 2023. The amount recognized by the city as its proportionate share of the net pension liability/(asset), the portion of the city’s net pension liability/(asset) to be paid by the State, and the total portion of the net pension liability/(asset) that was associated with the city were as follows: For the year ended December 31, 2023, the city recognized pension expense as follows: Plan Liability Asset PERS Plan 1 6,027,872$ -$ PERS Plan 2/3 (13,832,977) PSERS Plan 2 - (58,974) LEOFF Plan 1 - (7,391,300) LEOFF Plan 2 - (10,708,997) Firefighters' Pension (8,069,845) Total 6,027,872$ (40,062,092)$ Liability/(Asset) LEOFF Plan 1 - employer's proportionate share (7,391,300)$ LEOFF Plan 1 - State's proportionate share of the net pension liability/(asset) associated with the employer (49,994,569) TOTAL (57,385,869)$ Liability/(Asset) LEOFF Plan 2 - employer's proportionate share (10,708,996)$ LEOFF Plan 2 - State's proportionate share of the net pension liability/(asset) associated with the employer (6,838,655) TOTAL (17,547,651)$ Pension Expense (Income) PERS Plan 1 (362,213) PERS Plan 2/3 (1,665,780) PSERS Plan 2 8,686 LEOFF Plan 1 (638,326) LEOFF Plan 2 (144,471) Firefighters' Pension 353,956 Total (2,448,148)$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-48 At December 31, 2023, the city reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: For PERS Plan 1, $746,207, for PERS Plan 2/3, $1,565,500, for PSERS Plan 2, $15,036, and for LEOFF Plan 2 $509,252, reported as deferred outflows of resources related to contributions resulting from city contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Deferred Outflows of Resources PERS Plan 1 PERS Plan 2/3 PSERS Plan 2 LEOFF Plan 1 LEOFF Plan 2 Firefighters' Pension Total Differences between expected and actual experience -$ 2,817,761$ 18,453$ -$ 4,374,321$ -$ 7,210,535$ Net difference between projected and actual earnings on pension plan investments - - - - 238,281 238,281 Changes of assumptions - 5,807,561 26,385 - 2,735,574 8,569,520 Changes in proportion and differences between City contributions and proportionate - 468,145 - - 772,225 1,240,370 City contributions subsequent to the measurement date 746,207 1,565,500 15,036 - 509,252 2,835,995 Total 746,207$ 10,658,967$ 59,874$ -$ 8,391,372$ 238,281$ 20,094,701$ Deferred Inflows of Resources PERS Plan 1 PERS Plan 2/3 PSERS Plan 2 LEOFF Plan 1 LEOFF Plan 2 Firefighters' Pension Total Differences between expected and actual experience -$ 154,557$ 15,175$ -$ 88,105$ -$ 257,837$ Net difference between projected and actual earnings on pension plan investments 679,970 5,213,101 15,871 490,111 2,266,003 - 8,665,056 Changes of assumptions - 1,265,820 10,262 - 879,659 - 2,155,741 Changes in proportion and differences between City contributions and proportionate - 811,108 - - 1,420,265 - 2,231,373 Total 679,970$ 7,444,586$ 41,308$ 490,111$ 4,654,032$ -$ 13,310,007$ Differences Between Projected and Actual Earnings on Plan Investments Year PERS Plan 1 PERS Plan 2/3 PSERS Plan 2 LEOFF Plan 1 LEOFF Plan 2 Firefighters' Pension Total 2024 (462,622)$ (3,629,868)$ (11,591)$ (336,036)$ (1,588,754)$ 99,746$ (5,929,125)$ 2025 (581,804) (4,457,319) (13,951) (421,683) (1,954,683) 98,547 (7,330,893) 2026 358,731 2,868,981 9,818 261,584 1,269,809 50,974 4,819,897 2027 5,725 5,105 (147) 6,024 7,629 (10,986) 13,350 Total (679,970)$ (5,213,101)$ (15,871)$ (490,111)$ (2,265,999)$ 238,281$ (8,426,771)$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-49 Differences Between Expected and Actual Experience Recognition Period (Years)1 6.9 10.6 9.8 Year PERS Plan 2/3 PSERS Plan 2 LEOFF Plan 2 Total 2024 556,450$ 595$ 538,348$ 1,095,393$ 2025 628,044 595 538,348 1,166,987 2026 581,726 595 538,348 1,120,669 2027 457,870 595 548,138 1,006,603 2028 377,166 595 547,202 924,963 Thereafter 61,948 303 1,575,832 1,638,083 Total 2,663,204$ 3,278$ 4,286,216$ 6,952,698$ The recognition period for each plan is equal to the average of the expected remaining service lives of all employees provided with pensions through the pension plan, which was determined at the beginning of the measurement period. Changes of Assumptions Recognition Period (Years)1 6.9 10.6 9.8 Year PERS Plan 2/3 PSERS Plan 2 LEOFF Plan 2 Total 2024 607,504$ 1,407$ 161,378$ 770,289$ 2025 818,862 1,407 161,378 981,647 2026 861,399 1,407 161,378 1,024,184 2027 1,097,349 1,407 161,378 1,260,134 2028 1,156,627 1,407 229,846 1,387,880 Thereafter - 9,088 980,557 989,645 Total 4,541,741$ 16,123$ 1,855,915$ 6,413,779$ The recognition period for each plan is equal to the average of the expected remaining service lives of all employees provided with pensions through the pension plan, which was determined at the beginning of the measurement period. Recognition Period (Years)1 6.9 10.6 9.8 Year PERS Plan 2/3 PSERS Plan 2 LEOFF Plan 2 Total 2024 (136,023)$ -$ (73,974)$ (209,997)$ 2025 (114,339) - (73,974) (188,313) 2026 (92,154) - (73,974) (166,128) 2027 (64,504) - (58,070) (122,574) 2028 (2,170) - (42,752) (44,922) Thereafter 66,229 - (325,297) (259,068) Total (342,963)$ -$ (648,040)$ (991,002)$ The recognition period for each plan is equal to the average of the expected remaining service lives of all employees provided with pensions through the pension plan, which was determined at the beginning of the measurement period. Changes in Proportion and Differences Between City Contributions and Proportionate Share of Contributions 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-50 NOTE 6. OTHER POST EMPLOYMENT BENEFITS General Information The city implemented Governmental Accounting Standards Board (GASB) Statement 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions for calendar year 2018 financial reporting. Previously, the city accounted for its other postemployment benefit (OPEB) expenses related to the Health Plan based on a computed annual required contribution (ARC) and an amount to amortize unfunded actuarial accrued liabilities. Plan Description In accordance with the Revised Code of Washington (RCW) 41.26, the city administers a single-employer defined benefit healthcare plan (the Health Plan) for law enforcement officers and firefighters employed prior to October 1, 1977. The city maintains a standalone internal service fund, LEOFF 1 Retirees Healthcare Fund. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. The Health Plan’s actuary is Milliman, Inc. The report may be obtained by contacting the City of Renton, Finance Division, 1055 South Grady Way, Renton, WA 98057. The Health Plan does not issue a separate standalone financial report. Benefits Provided The Health Plan provides medical, prescription drug, dental, Medicare Part B premiums, long-term care, and vision expenses for LEOFF Plan 1 retirees. Dependent spouses and children are not covered. There are currently 70 retirees covered under the plan and the plan is closed to new entrants. Funding Policy Funding for LEOFF 1 retiree healthcare costs is provided entirely by the city as required by the Revised Code of Washington (RCW) 41.26. The city does not require retiree contributions. OPEB Liability The OPEB liability was determined by an actuarial valuation as of the valuation date, calculated based on the discount rate below, and was then projected forward to the measurement date. There have been no significant changes between the valuation date and the fiscal year ends. The city’s total OPEB liability of $30,842,514 was measured as of December 31, 2023. Total OPEB Liability 12/31/2022 12/31/2023 Total OPEB Liabilty 28,931,977$ 30,842,514$ Covered employee payroll -$ -$ N/A N/ATotal OPEB liability as of a % of covered employee payroll 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-51 Actuarial Methods and Assumptions An actuarial valuation was completed as of January 1, 2023. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The Bond Buyer General Obligation 20-bond municipal bond index for bonds that mature in 20 years is 3.26% as of December 28, 2023. Rounding this to the nearest 1/4% results in a discount rate of 3.25% as of the December 31, 2023 measurement date. Mortality rates were based on the following assumptions: Service-retired members were based on the Pub-2010 Safety Mortality Table (headcount- weighted) with generational projection using the ultimate rates in Projection Scale MP-2017, with ages set back one year for males. Disabled members were based on the PUB-2010 Safety Disability Mortality Table with generational projection using the ultimate rates in Projection Scale MP-2017. 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-52 Changes in the Total OPEB Liability The following table presents the change in the total OPEB liability as of December 31, 2023. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate. The following presents the total OPEB liability of the city as well as what the total OPEB liability would be if it were calculated using trend rates that are 1% point lower or 1% point higher than the current rate. The following presents the total OPEB liability of the city, calculated using the current healthcare cost trend rates as well as what the city’s total OPEB liability would be if it were calculated using trend rates that are 1% point lower or 1% higher than the current trend rates. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2023, the city recognized OPEB Expense of $3,269,069. As of December 31, 2023, the city reported no deferred outflows or inflows of resources related to OPEB. Changes in Total OPEB Liabilty Balance as of 12/31/2022 28,931,977$ Changes for the Year: Service Cost - Interest on total OPEB Liability 1,059,711 Effect of plan changes - Effect of Economic/demographic gains or losses (1,470,719) Effect of assumptions changes or inputs 3,680,077 Expected benefit payment (1,358,532) Balance as of 12/31/2023 30,842,514$ 1% Decrease 2.25% Current Discount Rate 3.25% 1% Increase 4.25% Total December 31,2023 OPEB Liability 34,547,908$ 30,842,514$ 27,724,879$ 1% Decrease Current Trend Rate 1% Increase Total December 31,2023 OPEB Liability 27,993,476$ 30,842,514$ 34,116,532$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-53 NOTE 7. CONTINGENCIES As of December 31, 2023, there were various claims for damages and lawsuits pending against the city. Although the outcome of these claims and lawsuits is not determinable at this time, it is the opinion of management, that the resolution of these matters will not have a material adverse effect on the financial condition of the city and that the city’s insurance policies and/or self-insurance reserves are adequate to pay all known or pending claims. The city participates in a number of federal and state assisted programs. These grants are subject to program compliance audits by the Single Audit Act. Such audits could result in requests for reimbursement to grantor agencies for expenditures disallowed under the terms of the grants. The amount of expenditure that may be disallowed, if any, cannot be determined at this time and the city’s management believes that such disallowances, if any, will be immaterial. As a result of a recent tax audit, the city issued a tax determination and subsequent tax assessment to a taxpayer for unpaid Business and Occupation tax. The city anticipates this significant audit assessment is likely to be appealed and has therefore not recognized the revenue in this fiscal reporting year. Any gains resulting from the audit assessment will be recognized when realization is probable. In 2021, the Washington State Supreme Court held in State v. Blake that the statute criminalizing drug possession was unconstitutional, and the reasoning has since been applied to several similar offenses. As a result of this decision, any Blake-related convictions qualify to be vacated from a person’s criminal record and any legal financial obligations (LFOs) tied to the conviction that were paid by the defendant qualify for financial reimbursement. The state legislature has provided funding for the city to process vacations and refund LFOs on behalf of the state, including funding in 2023 and proviso language that suggests an ongoing state responsibility. LFO reimbursements are expected to be processed through the Washington State Administrative Office of the Court’s Blake Refund Bureau. At this time, the city does not have sufficient information necessary to estimate any additional remaining potential liability. However, management believes, that the aggregate potential liability resulting from any remaining LFOs would not materially affect the financial condition of the city. NOTE 8. RISK MANAGEMENT The City of Renton is exposed to various risks of loss related to tort; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City of Renton protects itself against unforeseen losses by utilizing a three-pronged risk management approach. First, the city self-funds first level losses through its Insurance Fund. Second, insurance and excess insurance is purchased to cover medium and large losses. Third, the city reserves the right to utilize the provisions of Chapter 35A.31.070 RCW to fund catastrophic or uninsured losses. This State statute allows cities to levy a non-voted property tax increase to pay for uninsured claims. There were no settlements in excess of the insurance coverage in any of the three prior fiscal years. The risk management internal service fund is funded by charges to the City of Renton’s other funds and is based primarily upon the contributing funds’ claims experience. Actuarial studies were performed for 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-54 liability, worker’s compensation, and health benefits to determine claims liabilities and recommended funding levels for the risk areas. The claims liability reported in the fund is based on the requirements of the GASB Statement No. 10. Liabilities of the fund are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other allocated and unallocated claim adjustment expenses. The estimated liability for worker’s compensation and general liability is discounted to present value using a discount rate of 1.0%. The city's Risk Management Program is administered under the authority of the Human Resources and Risk Management Administrator, with claims being processed by the carriers shown below. As of December 31, 2023, the city had accrued the following amounts for outstanding claims: Coverage Total Claims Payable 12/31/2023 Liability 578,742$ Workers' compensation 892,087 Health Benefits 1,506,000 TOTAL 2,976,829$ 2023 Liability Workers' Compensation Health Benefits Totals Claims liabilities at beginning of the year 419,803$ 840,783$ 1,592,000$ 2,852,586$ Current year and changes in estimates (275,302) (823,534) (11,307,830) (12,406,665) Claims payments 434,241 874,838 11,221,830 12,530,908 Claims liabilities at end of the year 578,742$ 892,087$ 1,506,000$ 2,976,829$ 2022 Liability Workers' Compensation Health Benefits Totals Claims liabilities at beginning of the year 276,500$ 416,613$ 1,653,000$ 2,346,113$ Current year and changes in estimates (541,520) (633,231) (11,130,664) (12,305,415) Claims payments 684,823 1,057,401 11,069,664 12,811,888 Claims liabilities at end of the year 419,803$ 840,783$ 1,592,000$ 2,852,586$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-55 An analysis of the insurance deductibles and self-insured retention levels, limits of insurance, and carriers for the major types of coverage are as follows: Type of Coverage Risk Retention Occurrence Aggregate Amount Carrier Property $50,000 $200,000,000 Expires 07/01/2024 (per occurrence subject to annual aggregate & sub-limits) Cyber Liability $50,000 $2,000,000 APIP Expires 07/01/2024 (subject to sub-limits) Pollution Liability $100,000 $2,000,000 APIP Expires 07/01/2024 (per incident, per insured) Comm Gen Liability $300,000 $5,000,000 Safety National Expires 01/01/2024 (per occurrence, $5M aggregate) Comm Gen Liability - POL/EPL, Law Enf $300,000 $5,000,000 Safety National Expires 01/01/2024 (per occurrence, $5M aggregate) Liability $10M XS $5M $5,000,000 $10,000,000 AWAC Expires 01/01/2024 (per occurrence + $10M aggregate) Liability $5M XS $15M $15,000,000 $5,000,000 Hallmark Expires 01/01/2024 (per occurrence + $5M aggregate) Liability $5M XS $20M $20,000,000 $5,000,000 AWAC Expires 01/01/2024 (per occurrence + $5M aggregate) Unmanned Aircraft Liability $0 $1,000,000 National Union Fire Expires 01/01/2024 (per occurrence) Auto Liability $300,000 $5,000,000 Safety National Expires 01/01/2024 (per occurrence + $5M aggregate) Equipment Breakdown $10,000 $100,000,000 APIP Expires 07/01/2024 Employee Fidelity/Crime (ACIP)$10,000 $2,500,000 National Union Fire Expires 07/01/2024 Airport Liability $0 $100,000,000 National Union Fire Expires 01/01/2024 Storage Tank Pollution Liab $2,500 $1,000,000 Mid-Continent Casualty Expires 01/01/2024 Excess Workers’ Comp $750,000 Others, Statutory Safety National Expires 01/01/2024 $1,000,000 Police Deadly Weapons Response $10,000 $500,000 APIP Expires 01/01/2024 Alliant Property Insurance Program (APIP) 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-56 NOTE 9. INTERFUND TRANSACTIONS A. INTERFUND TRANSFERS The following is the composition of interfund transfers for the year ended December 31, 2023: During the year transfers were used to fund anticipated capital projects and equipment purchases. All transfers either occur on a regular basis or are consistent with the purpose of the fund making the transfer. Transfers that occur within the governmental funds are eliminated on the government-wide statement of activities. The city made the following one-time transfers during the year ending December 31, 2023: 1. $30 thousand transfer from the Hotel/Motel Tax Fund to the General Fund for matching a Port of Seattle grant for economic development activities. 2. $900 thousand transfer from the Municipal Facilities CIP Fund to the General Fund to return funds previously transferred for capital projects. 3. $4.3 million transfer from the General Fund, $1.1 million transfer from the Parks Impact Mitigation Fund, $3.7 million transfer from the REET 1 Fund and $100 thousand from the REET 2 Fund to the Municipal Facilities CIP Fund to fund various Facilities and Parks Planning & Natural Resources capital projects. 4. $1.16 million transfer from the General Fund, $5.8 million transfer from the Transportation Impact Mitigation Fund, and $4.1 million transfer from the REET 2 Fund to the Capital Improvement Fund to fund various Transportation capital projects. 5. $1.7 million transfer from the General Fund, $2.6 million from the Fire Impact Mitigation Fund and $1.24 million from the REET 2 Fund to the General Debt Fund to fund annual debt payments. 6. $115 thousand from the General Fund to the Golf Course Fund for operating costs. 7. $1 million transfer from the General Fund to the Insurance Fund for risk management reserves, and $136 thousand transfer from the General Fund to the Insurance Fund for non-capital related expenses. Transfer Out:General Municipal Facilities CIP Capital Improvement General Debt Golf Course Insurance Equipment Rental Total Governmental Funds: General - 4,290,379 1,165,000 1,678,850 115,000 1,136,346 5,272,265 13,657,841 Hotel/Motel Tax 30,000 - - - - - - 30,000 Parks Impact Mitigation - 1,090,000 - - - - - 1,090,000 Fire Impact Mitigation - - - 2,595,376 - - - 2,595,376 Transportation Impact Mitigation - - 5,817,897 - - - - 5,817,897 REET 1 - 3,715,000 - - - - - 3,715,000 REET 2 - 100,000 4,062,000 1,241,625 - - - 5,403,625 Municipal Facilities CIP 900,000 - - - - - 100,000 1,000,000 Capital Improvement - - - - - - - ‐ Enterprise Funds: Waterworks Utility 16,210 - - - - - 69,568 85,778 Solid Waste - - - - - - 84,275 84,275 Airport - 350,000 - - - - 175,339 525,339 Internal Service Funds: Insurance 900,000 - - - - - 58,813 958,813 Total 1,846,210 9,545,379 11,044,897 5,515,851 115,000 1,136,346 5,760,261 34,963,945 Governmental Funds Transfer In: Enterprise Funds Internal Service Funds 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-57 8. $5.3 million transfer from the General Fund to the Equipment Rental Fund for capital related expenses. 9. $100 thousand transfer from the Municipal Facilities Fund to the Equipment Rental Fund for furniture purchases. 10. $350 thousand transfer from the Airport Fund to the Municipal Facilities CIP Fund for capital related expenses. 11. $85 thousand from the Solid Waste Fund to the Equipment Rental Fund to fund vehicle replacement. 12. $175 thousand from the Airport Fund to the Equipment Rental Fund to fund fleet equipment purchase. 13. $900 thousand from the Insurance Fund to the General Fund for transfer of Annexation Sales Tax Credit Reserve. 14. $59 thousand from the Insurance Fund to the Equipment Rental Fund for new software. 15. Various transfers from the General Fund and Waterworks Utility Fund to the Equipment Rental Fund to fund previously unbudgeted equipment/furniture purchases. B. INTERFUND RECEIVABLES AND PAYABLES The composition of interfund receivables/ payables as of December 31, 2023, is as follows: Due from/to: These are the outstanding balances between funds during the year ending December 31, 2023: 1. $183 thousand from the General Fund to the Waterworks Utility Fund, $21 thousand to the Solid Waste Utility Fund, $16.6 thousand to the Airport Fund and $14.6 thousand to the Gold Fund to refund amounts related to General Fund indirect costs. 2. $115 from the General Fund to the Municipal Facilities Fund to refund amounts charged for non- capital related expense. 3. $18.7 thousand from the Insurance Fund to the General Fund and $21.9 thousand to the Waterworks Utility Fund for reimbursement of property claims expense. 4. $1,762 from the Equipment Rental Fund to the Waterworks Utility Fund to refund amounts charged for an equipment purchase. Receivable Fund Payable Fund Amount Waterworks Utility General Fund 183,339$ Solid Waste Utility General Fund 20,909 Airport General Fund 16,606 Golf General Fund 14,578 Municipal Facilities CIP General Fund 115 General Fund Insurance Fund 18,709 Waterworks Utility Insurance Fund 21,893 Waterworks Utility Equipment Rental 1,762 Total 277,911$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-58 Advances from/to: The amount payable from the Golf Course Fund was an interfund loan for the purchase of new golf carts. NOTE 10. LONG TERM LIABILITIES General Obligation Bonds General obligation bonds are direct obligations of the city for which its full faith and credit are pledged. Debt service for voter-approved bonds, which the city has none, would be funded by special property tax levies. Debt service for city council authorized bonds (councilmatic bonds) is funded from regular property taxes or general revenues and is generally paid from debt service funds. General Obligation Bonds outstanding at year-end are as follows:  2013 Limited Tax General Obligation qualified energy conservation bonds (QECB) which provided funding for streetlight improvements.  2015 (A) Limited Tax General Obligation refunding bond which refunded a portion of the 2006 limited tax general obligation bonds for the construction of South Lake Washington infrastructure improvements.  2019 Limited Tax General Obligation bonds which funded improvements to parks, trails and recreational facilities in the city.  2019 Limited Tax General Obligation local revitalization financing bonds (LRF) which provided funding for public infrastructure improvements in the South Lake Washington Revitalization Area. Other intergovernmental debt, backed by the full faith and credit of the city:  2019 intergovernmental debt which refunded the outstanding balance of the 2009 (A & B) intergovernmental debt for the acquisition, construction and equipping of the SCORE facility. Pursuant to a restated and amended interlocal agreement, the city is obligated to pay 40.96 percent of the debt service on the SCORE bonds. Revenue Bonds Revenue bonds are pledged from water, sewer, and storm revenues generated from the charges for service revenues in those funds. The city is required by bond covenants to secure parity reserves for these revenue bonds. The current parity reserves are $2,810,145. Due Within Receivable Fund Payable Fund Amount One Year General Fund Golf Course Fund 144,000$ 44,982$ Total 144,000$ 44,982$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-59 Revenue Bonds outstanding at year-end are as follows:  2012 Water/Sewer Revenue Refunding Bonds (Ordinance #5672) were issued in the amount of $9,190,000 and dated December 7, 2012. The average interest rate is 2.5%. These bonds were issued for the purpose of refunding a portion of the 2004 Water/Sewer Revenue Bonds.  2016 Water/Sewer Revenue Refunding Bonds (2008A) (Ordinance #5812) were issued in the amount of $9,385,000 and dated October 20, 2016. The average interest rate is 1.73%. These bonds were issued for the purpose of refunding a portion of the 2008 (A) Water/Sewer Revenue Bonds (Exempt). State of Washington Public Works Trust Fund Loans (PWTFL) PWTFL are the direct responsibility of the city. At year-end the city has one outstanding loan, with a remaining balance of $272,648. This is for water capital improvements and pledged from water system revenues. PWTFL outstanding at year-end are as follows:  Maplewood Drinking Water Treatment Improvement loan was to construct the drinking water treatment improvements at Maplewood. Compensated Absences Compensated absences are paid by those funds that have employees. These are mostly payable from the General Fund and Waterworks Utility Fund. Leases The city leases certain machinery, equipment, and land. In addition, the city has entered into subscription-based agreements for information technology (SBITA) services. These lease payments are payable from the General Fund, Equipment Rental Fund and Airport Fund. Refer to Note 12 and Note 13 for a detailed summary of leases. Long‐Term Debt Schedules The following schedules summarize the long-term debt transactions of the city for the year ended December 31, 2023. The first two tables reflect total annual debt service requirements to maturity, while the third table provides detailed information on all long-term debt. Year Principal Interest Principal Interest 2024 2,627,872 1,678,498 215,000 34,615 2025 2,742,688 1,566,033 215,000 27,692 2026 2,860,696 1,445,249 215,000 20,769 2027 2,997,800 1,319,089 215,000 13,846 2028 3,119,904 1,186,749 215,000 6,923 2029-2033 11,060,528 4,262,125 - - 2034-2038 13,506,968 1,808,266 - - 2039-2043 2,215,001 272,800 - - Totals 41,131,457 13,538,809 1,075,000 103,845 Bonds Bonds ‐ Direct Placements Governmental Activities 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-60 Debt Limit Capacity State law provides that debt cannot be incurred in excess of the following percentages of the value of the taxable property of the city: 1.5 percent without a vote of the people provided the indebtedness with a vote is 1 percent or less; 2.5 percent with a vote of the people; 5.0 percent with a vote of the people, provided the indebtedness in excess of 2.5 percent is for utilities; and 7.5 percent with a vote of Year Principal Interest Principal Interest Principal Interest 2024 1,515,000 190,200 1,030,000 73,093 272,647 1,363 2025 1,560,001 144,750 1,045,000 55,274 - - 2026 1,610,000 97,950 1,065,000 37,195 - - 2027 1,655,000 49,650 1,085,000 18,771 - - Totals 6,340,001 482,550 4,225,000 184,332 272,647 1,363 Revenue Bonds‐ Direct PlacementsRevenue Bonds Business‐Type Activities Loans ‐ Direct Borrowings Issue Name Interest Rates Maturity Date Original Issue Amount Beginning Balance 01/01/2023 Additions Deductions Ending Balance 12/31/2023 Due Within One Year GOVERNMENTAL‐TYPE DEBT: Limited General Obligation Bonds: 2015 (A) GO S LK WA Infr Refunding (BQ) 3.00%-4.00% 12/1/2028 8,825,000 6,640,000 - 1,005,000 5,635,000 1,045,000 2019 GO Parks Bonds 3.00%-5.00%12/1/2038 12,960,000 11,355,000 - 490,000 10,865,000 515,000 2019 GO LRF Bonds (Transportation)3.00%-5.00%12/1/2043 7,885,000 7,030,000 - 210,000 6,820,000 220,000 Unamortized (discount)/premium 2,661,853 - 208,888 2,452,965 - 29,670,000 27,686,853 ‐ 1,913,888 25,772,965 1,780,000 General Obligation Bonds from Direct 2013 GO QECB 3.22%7/1/2028 3,200,000 1,290,000 - 215,000 1,075,000 215,000 3,200,000 1,290,000 ‐ 215,000 1,075,000 215,000 2009 FD 40 Loan for acquisition of FS13 3.75%9/1/2028 6,798,085 2,533,190 - 2,533,190 - - 2019 SCORE Refunding Bonds 3.00%-5.00%12/1/2038 20,912,128 18,626,560 - 815,103 17,811,457 847,872 Total Intergovernmental Debt 27,710,213 21,159,750 ‐ 3,348,293 17,811,457 847,872 Other Long‐Term Liabilities: Employee Leave Benefits - Compensated Absences 4,933,474 3,255,486 2,995,505 5,193,455 3,441,906 Other Post Employment Benefits (OPEB)28,931,977 1,910,537 - 30,842,514 1,229,311 Net Pension Liability 5,960,229 - 1,162,645 4,797,584 - Leases Various Various 1,684,709 156,307 1,455,054 647,624 963,737 473,894 Total Other Long‐Term Liabilities 1,684,709 39,981,987 6,621,077 4,805,774 41,797,290 5,145,111 62,264,922$ 90,118,590$ 6,621,077$ 10,282,955$ 86,456,712$ 7,987,983$ BUSINESS‐TYPE DEBT: Revenue Bonds: 2012 Water/Sewer Refunding 2.00%-3.00%12/1/2027 $ 9,190,000 7,810,000$ - 1,470,000$ 6,340,000$ 1,515,000$ Unamortized (discount)/premium 253,096 - 50,619 202,477 - Total Revenue Bonds 9,190,000 8,063,096 ‐ 1,520,619 6,542,477 1,515,000 Revenue Bonds from Direct Placements: 2016 Water/Sewer Refunding (2008A)1.73%12/1/2027 9,385,000 5,240,000 - 1,015,000 4,225,000 1,030,000 Total Revenue Bonds from Direct Placements 9,385,000 5,240,000 ‐ 1,015,000 4,225,000 1,030,000 Loans from Direct Borrowings: Public Works Trust Fund Loans: Maplewood Water Treatment Improvement 0.50%7/1/2024 5,150,000 545,295 - 272,647 272,648 272,648 5,150,000 545,295 ‐ 272,647 272,648 272,648 Other Long‐Term Liabilities: Employee Leave Benefits - Compensated Absences 776,476 520,273 467,191 829,558 544,614 Net Pension Liability 1,644,044 413,756 1,230,288 - Leases 2.21%4/1/2035 29,633 27,202 - 1,829 25,373 1,870 Total Other Long‐Term Liabilities 2,447,722 520,273 882,776 2,085,219 546,484 $ 23,754,633 16,296,113$ 520,273$ 3,691,042$ 13,125,343$ 3,364,132$ $ 86,019,555 $ 106,414,703 $ 7,141,350 $ 13,973,997 $ 99,582,055 $ 11,352,115 Schedule of Changes of Long‐Term Liabilities TOTAL ALL FUNDS TOTAL BUSINESS‐TYPE DEBT TOTAL GOVERNMENTAL‐TYPE DEBT Total Loans from Direct Borrowingss Total General Obligation Bonds Other Intergovernmental ‐ Backed by full faith and credit of the City: Total General Obligation Bonds from Direct Placements 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-61 the people provided the indebtedness in excess of 5.0 percent is for open space development and parks facilities. Table 16 in the Statistical Section shows the computation of legal debt margin for general and special purpose capacities for the City of Renton. Estimated Arbitrage Rebate The city engages an outside agency to calculate its arbitrage rebate liability on outstanding tax-exempt bonds and certificates of participation under Section 148(f) of the Internal Revenue Code. No additional rebate was found due for any revenue or general obligation bonds for 2023. NOTE 11. JOINT VENTURES A joint venture is a legal entity or other organization that results from a contractual agreement and that is owned, operated, or governed by two or more participants as a separate and specific activity subject to joint control in which the participants retain (a) an on-going financial interest or (b) an on-going financial responsibility. The city participates in two joint ventures, both of which are sanctioned by the provisions and terms of the Interlocal Cooperation Act pursuant to Chapter 39.34 RCW. VALLEY COMMUNICATIONS CENTER The Valley Communications Center (Valley Com) was established August 20, 1976, when an Interlocal Agreement was entered into by four original participating municipal corporations, including the cities of Renton, Kent, Auburn, and Tukwila. Federal Way was formally admitted in 2000. The initial duration of the agreement was five years, and thereafter is automatically extended for consecutive five-year periods. The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved consolidated emergency communications (dispatch) services for police, fire, and medical aid to the five participating cities and to several subscribing agencies that include: King County Fire Districts 2, 20, 44, 47; City of Pacific Police Department; City of Black Diamond Police Department; City of Des Moines Police Department; City of Algona Police Department; Enumclaw Fire; Valley Regional Fire Authority; North Highline Fire Department; South King Fire & Rescue; Vashon Island Fire & Rescue; King County Airport; Puget Sound Regional Fire Authority; Renton Regional Fire Authority, KC Sheriff’s Office; and KC Medic One. Separate agreements between Valley Com and the subscribing agencies have been executed, which set forth conditions of services and rates charged. The city made payments totaling $2,935,786 to support Valley Com’s operating costs during the year ended December 31, 2023. The city reports its share of equity interest in the Governmental Activities column within the Government-wide financial statements under non-current assets – investments in joint ventures. The following is condensed financial information as of December 31, 2023, related to Valley Communications Center: 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-62 Complete Financial Statements for Valley Com can be obtained from the Valley Communications Center, 23807 – 98th Avenue South, Kent, WA 98031. SOUTH CORRECTIONAL ENTITY (SCORE) The South Correctional Entity (SCORE), a consolidated correctional facility, was established February 25, 2009, when an interlocal agreement was entered into by seven participating municipal governments (“owner cities”) of Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila. This agreement was amended and restated October 1, 2009, and named the City of Des Moines as the “host city”. Pursuant to a separate “Host City Agreement” dated October 1, 2009, the host city will not enjoy the same equity position as the original owner cities until all debts issued are paid and the host city fulfills all of its obligations as outlined in the Agreement. On December 11, 2019, the internal local agreement was again amended to reflect the withdrawal of Federal Way as an owner city and added the City of Des Moines as an owner city, terminating the host city agreement. The internal local agreement also included other revisions to provide the issuance of bonds to refund the 2009 bonds. The purpose of the interlocal operation, SCORE, is to serve the Member Cities and Subscribing Agencies which are in need of correctional facilities. SCORE provides correctional services and functions incidental thereto, for the purpose of detaining arrestees and sentenced offenders in the furtherance of public safety and emergencies within the jurisdiction of the Member Cities. Separate agreements between SCORE and subscribing agencies have been executed, which set forth conditions of services and rates charged. Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility was provided by bonds issued by the South Correctional Entity Facility Public Development Authority (the “SCORE PDA”), a public development authority chartered by the City of Renton pursuant to RCW 35.21.730 through 35.21.755 and secured by the full faith and credit of the Cities of Auburn, Burien, Federal Way, Renton, SeaTac, and Tukwila (the owner cities). The SCORE PDA issued $86 million in special obligation bonds in 2009 to carry out the facility development project. As previously mentioned SCORE issued refunding bonds on December 11, 2019 in the amount of $51,055,000 (2019 Bonds). The proceeds of the 2019 bonds were used together with a contribution from Federal Way to fully pay its 2009 Capital Contribution, to defease and refund all of the outstanding 2009 bonds. Federal Way has also reduced their owner equity balance to zero in 2019 and no longer holds responsibility for any long- term debt. Member City Percent of Equity 2022 Equity Balance 2023 Distribution 2023 Equity Balance Auburn 21.59% 8,834,669$ 1,016,695$ 9,851,364 Federal Way 18.90% 7,627,741 996,975 8,624,716 Kent 28.23% 11,560,686 1,322,034 12,882,720 Renton 21.17% 8,610,737 1,049,574 9,660,311 Tukwila 10.11% 4,114,494 500,926 4,615,420 Grand Totals 100.00% 40,748,327$ 4,886,204$ 45,634,531$ Valley Communications Center 2023 Owner Cities Equity Allocation 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-63 The following is a summary of the debt service requirements, for each owner city: The City of Renton made payments totaling $4,664,664 to support SCORE’s operating costs during the year ended December 31, 2023. The city reports its share of equity interest in the Governmental Activities column within the Government-wide financial statements under non-current assets – investments in joint ventures. The following is condensed financial information as of December 31, 2023, related to SCORE: Complete financial statements for SCORE and SCORE PDA can be obtained at SCORE, 20817 17th Avenue South, Des Moines, WA 98198. WASHINGTON MULTI‐CITY BUSINESS LICENSE AND TAX PORTAL AGENCY (FILELOCAL) Washington Multi-City Business Licenses and Tax Portal Agency (d.b.a. FileLocal) was established on March 1, 2014, under the state lnterlocal Cooperation Act (Ch.39.34.RCW) and Chapter 24.06 RCW. FileLocal is an instrumentality of its member cities, formed to carry out exclusively governmental activities to offer a web-based service that makes it easier for businesses to obtain business licenses and Auburn Burien Des Moines Renton SeaTac Tukwila Year 34.94%4.82%6.02%40.96%3.62%9.64% 2024 1,366,119 188,457 235,376 1,601,495 141,538 376,914 2025 1,366,888 188,563 235,508 1,602,397 141,618 377,126 2026 1,365,927 188,431 235,343 1,601,270 141,518 376,861 2027 1,366,626 188,527 235,463 1,602,089 141,591 377,054 2028 1,365,315 188,346 235,238 1,600,553 141,455 376,693 2029-2033 6,830,875 942,324 1,176,928 8,007,803 707,721 1,884,649 2034-2038 6,829,110 942,081 1,176,624 8,005,734 707,538 1,884,162 Totals 20,490,860$ 2,826,729$ 3,530,480$ 24,021,341$ 2,122,979$ 5,653,459$ Debt Service Allocation to Owner Cities Member City Percent of Equity 2022 Equity Balance 2023 Distribution 2023 Equity Balance Auburn 41.48% 14,096,126$ 1,218,714$ 15,314,840$ Burien 5.39% 1,831,888 268,275 2,100,163 Des Moines 5.02% 1,707,548 181,695 1,889,243 Renton 32.11% 10,913,931 970,291 11,884,222 SeaTac 8.27% 2,812,314 214,728 3,027,042 Tukwila 7.73% 2,627,335 163,548 2,790,883 Grand Totals 100.00% 33,989,142$ 3,017,251$ 37,006,393$ South Correctional Entity (SCORE) 2023 Owner Cities Equity Allocation 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-64 pay local Business & Occupation (B&O) taxes to its member cities. FileLocal began providing services in July 2015. There are currently eight participating member cities: Bellevue, Everett, Seattle, Tacoma, Lake Forest Park, Des Moines, Kent, and Renton. There are also two subscriber cities: Snoqualmie and Shoreline. An Executive Board serves as the primary governing body of File Local. The board is comprised of members from all eight member cities. The Executive Board has final decision-making authority upon all policy issues, approval or amendment of Bylaws or Articles of Incorporation, acquisition of assets, admission of new Principal(s) or Subscriber(s), appointing or removing a manager, merger, consolidation, sale, termination, or dissolution of the agency by supermajority vote. Principals pay a prorate share of budgeted expenditures each year based on the number of transactions processed in the most recent full year of data. The City of Renton paid $33,405 in 2023, which represents the city’s equity share of 4.29% or $75,627. Financial reports for FileLocal can be obtained from the contracted CPA, Horace Francis at FileLocal, 700 Fifth Avenue, Suite 4350, Seattle, WA 98104. NOTE 12. SUBSCRIPTION‐BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITA) GASB Statement No. 96, Subscription-Based Information Technology Arrangements, defines a SBITA as a contract that conveys control of the right to use another party’s IT software for a period of time in an exchange or exchange-like transaction. As of December 31, 2023, the city has contracts that meet the criteria of a SBITA. Microsoft Corporation – In September 2023, the city entered a contract with Microsoft for software licenses. The licenses provide access to the vendor’s Desktop Platform Product and Online Services. The term of the contract is three years. Axon Enterprise, Inc – In October 2021, the city entered a contract with Axon for Police Body Cameras, Dash Camaras, Video Storage and Management. The software subscription component of the contract allows the city to access videos stored by the vendor. The term of the contract is five years. Cision US Inc – In February 2023, the city entered a contract with Cision. The subscription allows the city to access Cision Communications Cloud Platform, a media management platform. The term of the contract is two years. King County – In May 2023, the city entered a contract with King County for the I-Net Services. The services provide internet connection and access through fiber optic network, which includes direct cloud service connections. The term of the contract is three years. NetMotion Software, Inc – In November 2021, the city entered a contract with NetMotion for software licenses. The licenses provide network security and support. The term of the contract is four years. 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-65 Origami Risk LLC – In July 2021, the city entered a contract with Origami for risk management software. The software is used for risk management information. The term of the contract is three years. Pacific Golf and Turf – In February 2022, the city entered a contract with Pacific Golf and Turf for cloud- based irrigation control system that includes system software and support. The term of the contract is two years. PerfectMind Inc. – In November 2022, the city entered a contract with PerfectMind for software licenses to access their platform. The software is used for payment processing of recreation fees. The term of the contract is three years. As of December 31, 2023, the principal and interest requirements to maturity are as follows: The intangible asset SBITA activity in governmental activities and related accumulated amortization for year ended December 31, 2023, are as follows: NOTE 13. LEASES GASB Statement No. 87, Leases, a lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset specified in the contract for a period of time in an exchange or exchange-like transaction. As of December 31, 2023, the city has lease agreements where the city is the lessee and the lessor. The city also has regulated leases subject to external laws, regulations, or legal ruling. Year ended December 31 Principal Interest Total 2024 581,982$ 44,688$ 626,670$ 2025 462,701$ 20,177$ 482,878 2026 11,428$ 121$ 11,549 2027 -$ -$ - 2028 -$ -$ - 2029 and after -$ -$ - Total 1,056,111$ 64,986$ 1,121,097$ Beginning Balance Increases Decreases Ending Balance Intangible Assets -$ 1,669,639$ -$ 1,669,639$ Total -$ 1,669,639$ -$ 1,669,639$ Accumulated Amortization - 262,090 - 262,090 Governmental activities, net -$ 1,407,549$ -$ 1,407,549$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-66 A. Lessee Governmental Activity Leases Aquatic Land Lease – In August 2013, the city entered into a lease agreement as lessee with WA State Department of Natural Resources for use of aquatic land commonly known as Lake Washington, which is a harbor area located in King County Washington. The city uses the land as a park, Gene Coulon Memorial Beach Park. The lease agreement ends in 2043 with payments made annually. Copier Lease - In June 2020, the city entered into a lease agreement as lessee with Xerox Financial Services, LLC for three Xerox copiers. The copiers are used by the Communications Department. The lease has a term of five years with payments made monthly. Equipment – In October 2017, the city entered into a lease agreement as lessee with Pitney Bowes, Inc. for mailroom equipment. The equipment is used by the Communications Department. The lease has a term of five years with payments made quarterly. As of December 31, 2023, the principal and interest requirements to maturity are as follows: The intangible asset lease activity in governmental activities and related accumulated amortization for year ended December 31, 2023, are as follows: Business-type Activity Leases Aquatic Land Lease – In September 2006, the city entered into a lease agreement as lessee with WA State Department of Natural Resources for use of aquatic land commonly known as Lake Washington, which is a harbor area located in King County, Washington. The city uses the land for seaplane moorage at City of Renton Municipal Airport. The lease agreement ends in 2036 with payments made annually. Year ended December 31 Principal Interest Total 2024 35,055$ 2,850$ 37,906$ 2025 21,356 1,957 23,312 2026 7,282 1,690 8,972 2027 2,973 1,579 4,552 2028 3,053 1,499 4,552 2029 and after 52,492 11,236 63,728 Total 122,211$ 20,811$ 143,022$ Beginning Balance Increases Decreases Ending Balance Leased Land 74,198$ -$ -$ 74,198$ Leased Building - - - - Leased Equipment 155,457 - - 155,457 Total 229,655$ -$ -$ 229,655$ Accumulated Amortization, Leased asset 77,078 34,625 - 111,703 Governmental activities, net 152,577$ (34,625)$ -$ 117,952$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-67 As of December 31, 2023, the principal and interest requirements to maturity are as follows: The intangible asset lease activity in governmental activities and related accumulated amortization for year ended December 31, 2023, are as follows: B. Lessor The city is a lessor for noncancelable leases. The city recognizes a lease receivable and a deferred inflow of resources in the government-wide and fund financial statements. At the commencement of a lease, the city initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measure as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term using the (straight-line basis/effective interest method). Key estimates and judgements related to lease include how the city determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The city uses its estimated incremental borrowing rate as the discount rate for leases. This is the rate the lessee would be charged for borrowing the lease payment amounts during the lease term. The lease term includes the noncancelable period of the lease. Lease receipts included in the measurement of the lease liability are compose of fixed payments from the lessee. Year ended December 31 Principal Interest Total 2024 1,870$ 561$ 2,431$ 2025 1,911$ 520$ 2,431$ 2026 1,953$ 478$ 2,431$ 2027 1,997$ 434$ 2,431$ 2028 2,041$ 390$ 2,431$ 2029 and after 15,601$ 1,416$ 17,017$ Total 25,373$ 3,799$ 29,172$ Beginning Balance Increases Decreases Ending Balance Leased Land -$ -$ -$ -$ Leased Building - - - - Leased Equipment 29,633 - - 29,633 Total 29,633$ -$ -$ 29,633$ Accumulated Amortization, Leased asset 2,117 2,117 - 4,233 Business-type activities, net 27,516$ (2,117)$ -$ 25,400$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-68 The city monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. Governmental Activity Leases Tenant Lease, Building – In May 2014, the city entered into a lease agreement with Ivar’s Inc. to lease the concession facilities at Gene Coulon Memorial Beach Park. The lease term ends April 2029. The city receives monthly base rent as well as a percentage of net sales, which are variable payments that are not fixed in substance and are dependent upon future performance. In 2023, the city recognized tenant revenue of $105,646 and interest revenue of $4,370. Land use, Land – In March 2016, the city entered into a franchise agreement with Olympic Pipeline Company to use rights-of-ways within and through City of Renton to construct, repair, replace, operate, and maintain pipeline. The term of the agreement ends February 2026 with payments received annually. In 2023, the city recognized lease revenue of $17,299 and interest revenue of $845. Site Lease, Building – In December 1999, the city entered into a lease agreement with Sprint Spectrum LP to lease building space for communication service system facility. Payments are received monthly. The lease terminated in September 2023. In 2023, the city recognized lease revenue of $28,922 and interest revenue of $940. Site Lease, Building – In December 1999, the city entered into a lease agreement to lease building space for the purpose of occupying and installing communication facilities at 200 Mill. The current lessee of the agreement is T-Mobile. The lease term ends December 2030 with payments received monthly. In 2023, the city recognized lease revenue of $30,629 and interest revenue of $4,363. Site Lease, Building – In November 2014, the city entered into a lease agreement with Amazing Grace Lutheran Church, a Washington State non-profit corporation, to lease space at 200 Mill to expand capacity of its existing school. The lease term was extended to June 2024. The lease was re-measured to reflect the change to the lease term. In 2023, the city recognized lease revenue of $396,401 and interest revenue of $931. As of December 31, 2023, future lease receivable principal and interest payments for governmental activities are as follows: Year ended December 31 Principal Interest Total 2024 396,657$ 9,501$ 406,158$ 2025 195,648 7,320 202,968 2026 197,631 5,337 202,968 2027 141,471 3,537 145,008 2028 142,810 2,198 145,008 2029 and after 105,357 1,299 106,656 Total 1,179,574$ 29,192$ 1,208,766$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-69 Business-type Activity Leases Tenant Lease, Building – In November 2020, the city entered into a lease agreement with Northwest Restaurant Experience, Inc. to lease space at the Maplewood Golf Course Clubhouse. The tenant uses the space as a restaurant, as well as selling food and beverages on the golf course and driving range. The lease term ends November 2034. The city receives monthly base payments as well as a percentage of sales for the year, which are variable payments that are not fixed in substance and are dependent upon future performance. In 2023, the city recognized tenant revenue of $9,880 and interest revenue of $2,120. Site Lease, Land – In September 1997, the city entered into a lease agreement for the use of real property for the purpose of occupying and installing communication facilities. The current lessee of the agreement is T-Mobile. The lease term ends December 2023 with payments received monthly. In 2023, the city recognized lease revenue of $18,868 and interest revenue of $80. Site Lease, Land – In June 1997, the city entered into a lease agreement for the use of real property for the purpose of occupying and installing communication facilities. The current lessee of the agreement is Verizon Wireless. The lease term ended February 2023, with payments received monthly. In 2023, the city recognized lease revenue of $3,491 and interest revenue of $1. As of December 31, 2023, future lease receivable principal and interest payments for governmental activities are as follows: C. Regulated Leases The city has leases regulated by the Federal Aviation Administration (FAA). The FAA regulates aviation leases between airports and air carriers and other aeronautical users. Renton Municipal Airport enters into lease agreements that convey the right to use land and various airport facilities. In 2023, the airport recognized lease revenue of $4,069,851. Year ended December 31 Principal Interest Total 2024 10,050$ 1,950$ 12,000$ 2025 10,222 1,778 12,000 2026 10,398 1,602 12,000 2027 10,575 1,425 12,000 2028 10,756 1,244 12,000 2029 and after 67,281 3,476 70,757 Total 119,282$ 11,475$ 130,757$ 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-70 Minimum future lease revenue on non-cancellable leases is as follow: Of the amounts shown above, one tenant comprises 54% of all future minimum lease revenues. The tenant’s multiple leases expire in 2030. A summary of assets leased or available for tenant use is as follows: NOTE 14. TAX ABATEMENT As of December 31, 2023, the city provides tax abatements through two programs - the Affordable Multi- Family Housing Property Tax Exemption and the New Job Business & Occupation Tax Credit. Multifamily Housing Property Tax Exemption Under the provisions of the Preservation Tax Exemption program (RCW 84.14), the city has taken advantage of the option to provide targeted property tax exemption to existing property owners who agree to restrict rents and provide income-eligibility for a portion of the units within their properties. The purpose of this program incentivizes the creation of affordable and improved housing quality and prevent displacement for citizens that are in the most need. The city has a comprehensive program that has specific parameters for project eligibility and duration of exemption. Provided a property meets the eligibility criteria and the property owner continues to fulfill the requirements of affordable housing, the property will receive a property tax exemption on the appraised value of improvements, regardless of assessed valuation. This exemption is not extended to the appraised value of land or non-eligible improvements on the same parcel. Eligibility criteria includes, at a minimum: the property owner must provide affordable housing to low-income households for 20% of the multi-units available for rent and the property must be located in one of the designated “residential target areas”. All exemptions granted after July 2007 range from 8-12 years depending on the exemption option selected. There are no provisions to recapture abated taxes. As of December 31, 2023, the city has four projects that are subject to property tax abatement. Year Ended December 31 2024 2,887,748 2025 3,190,742 2026 3,369,223 2027 3,850,297 2028 3,779,961 Thereafter 13,459,394 30,537,365$ Cost Accumulated Deprciation Carrying Value Land 784,080 - 784,080 Buildings 742,098 557,785 184,313 Other Improvements 27,170,299 13,632,063 13,538,236 Total 28,696,477 14,189,848 14,506,629 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-71 The State of Washington employs the multi-unit urban housing exemption (RCW 84.14.020) that impact tax revenues of the city. This program provides for an ad valorem property tax emption for qualifying new housing construction, conversion, and rehabilitation improvements. The impact to the city for taxes abated by the State of Washington is shown in the table below. New Jobs Business & Occupation Tax Credit The purpose of the New Jobs Business & Occupation Tax Credit is to provide a temporary tax credit relating to new businesses to encourage business growth or relocation into the city. In order to qualify for the tax credit, businesses must create fifty or more new full time employment positions in the first year of business in the city. The credit is equal to one thousand dollars for each new full-time employment position created and is used to reduce the amount of Business & Occupation tax owed by the business. The tax credit cannot exceed the total tax due. A business may claim the credit under this program for the first twelve consecution reporting quarters or three reporting years. State of Washington Sales Tax Exemptions The State of Washington has tax abatements that allow for sales/use tax exemptions and deferrals. Purchases for computer hardware, computer peripherals, or software used primarily in the development, design and engineering of aerospace products or providing aerospace services or sales are exempt from sales and use tax per RCW 82.08.975 and 82.12.975. The exemption also applies to sales of labor and services rendered in respect to installing the computer hardware, peripherals or software used to develop or design aerospace products. The eligible purchaser must present a Buyers’ Retail Sales Tax Exemption Certificate to the seller at the time of purchase. The State of Washington is prohibited by the law to disclose detail on the amount of abatements provided under these exemption and deferrals. NOTE 15. SUBSEQUENT EVENTS On April 1, 2024, Ordinance 6129 became effective, increasing the city’s sales and use tax by 0.1 percent within the boundaries of the Renton Transportation Benefit District to finance the costs associated with transportation improvements in the district in accordance with RCW 36.73.065 and RCW 82.14.0544. On January 22, 2024, Washington State signed an additional opioid settlement with Janssen to receive $123.34 million dollars. Washington State will keep 50% of the funds and allocate out the remaining $61.67 million dollars to participating local cities and counties using an allocation method. The city anticipates an estimated $472,000 will be received in conjunction with this settlement. Tax Abatement Program City of Renton Other Governments Property Tax Exemption for Affordable Multi-Family Housing $88,196 $34,183 New Jobs Business & Occupation Tax Credit $22,019 Tax abated in the fiscal year ending 12/31/2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Basic Financial Statements, 4-72 Original Final Actual Variance with Final Budget REVENUES Taxes 98,876,943 107,357,943 114,191,700 6,833,757 Licenses and permits 5,792,660 5,862,660 6,649,422 786,762 Intergovernmental revenues 4,339,603 8,951,804 6,277,959 (2,673,845) Charges for services 10,349,646 10,846,466 11,271,664 425,198 Fines and forfeits 3,816,442 3,702,050 3,791,015 88,965 Contributions 37,000 284,088 627,852 343,764 Investment earnings 350,000 1,950,000 4,331,801 2,381,801 Miscellaneous revenue 1,250,535 1,612,571 2,091,320 478,749 Total revenues 124,812,829 140,567,582 149,232,733 8,665,151 EXPENDITURES Current: Culture and recreation 15,861,247 16,740,784 16,180,638 560,146 Economic environment 15,539,912 17,174,819 13,391,492 3,783,327 General government 20,316,393 21,085,882 18,912,735 2,173,147 Health and human services 2,987,160 5,403,963 3,704,619 1,699,344 Judicial 4,300,240 4,605,909 4,179,892 426,017 Public safety 49,749,521 50,395,639 50,445,635 (49,996) Transportation 14,557,017 14,805,937 13,700,709 1,105,228 Total current 123,311,490 130,212,933 120,515,720 9,697,213 Capital outlay: Culture and recreation 15,000 55,781 18,634 37,147 Economic environment - 253,871 20,014 233,857 Public safety 500,000 119,815 71,485 48,330 Transportation 5,200 52,200 67,922 (15,722) Total capital outlay 520,200 481,667 178,055 303,612 Total expenditures 123,831,690 130,694,600 120,693,775 10,000,825 Excess (deficiency) of revenues over expenditures 981,139 9,872,982 28,538,958 18,665,976 OTHER FINANCING SOURCES (USES) Transfer in 900,000 1,900,000 1,846,210 (53,790) Transfers out (4,662,729) (13,915,282) (13,657,841) 257,441 Proceeds from sale of capital assets - - 840 840 Insurance Recoveries - - 23,142 23,142 Total other financing sources (uses)(3,762,729) (12,015,282) (11,787,649) 227,633 Net change in fund balances (2,781,590) (2,142,300) 16,751,309 18,893,609 Fund balances - January 1 62,921,276 83,605,978 93,106,510 9,500,532 Fund balances - December 31 60,139,686$ 81,463,678$ 109,857,819$ 28,394,141$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Required Supplementary Information, 5-1The note to schedule is an integral part of this schedule. NOTES TO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – GENERAL FUND NOTE 1. BUDGETARY BASIS OF ACCOUNTING The City of Renton’s biennial budget procedures are mandated by the Chapter 35A.33 of the Revised Code of Washington (RCW). The budget, as adopted, constitutes the legal authority for expenditures. The biennial budget is adopted with budgetary control at the fund level, so expenditures may not legally exceed appropriations at that level of detail. Transfers or revisions within funds are allowed, but only the City Council has the legal authority to increase or decrease a given fund’s annual budget. This is accomplished by City ordinance. Adopted budgets lapse at year-end and must be re-appropriated (carried forward) the next fiscal year. The Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual is presented on a budgetary basis (non-GAAP). The budgetary basis of accounting is substantially the same as the modified accrual basis of accounting in all governmental funds except for the following differences: Basis differences – certain payments and receipts are budgeted for in a manner that is inconsistent with GAAP:  Interfund reimbursements for indirect cost allocations and payroll costs associated with capital projects are budgeted as charge for service revenues, however, these payments are reclassified as a reduction of the expenditure for GAAP reporting.  Interfund loans are budgeted as other financing sources (uses), however, these payments and receipts are reclassified as changes in an interfund loan receivable/payable for GAAP reporting. 2023 Annual Comprehensive Financial Report City of Renton, Washington Required Supplementary Information, 5-2 NOTES TO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – GENERAL FUND A reconciliation of Revenues, Expenditures, and Changes in Fund Balance budgetary basis to GAAP basis is as follows: General Fund Budgetary Basis Interfund Reimbursements General Fund GAAP Basis REVENUES Taxes 114,191,700 $ - $ 114,191,700 Licenses and permits 6,649,422 - 6,649,422 Intergovernmental revenues 6,277,959 - 6,277,959 Charges for services 11,271,664 (5,411,964) 5,859,700 Fines and forfeits 3,791,015 - 3,791,015 Contributions 627,852 - 627,852 Investment earnings 4,331,801 - 4,331,801 Miscellaneous Revenue 2,091,320 - 2,091,320 Total revenues 149,232,733 (5,411,964) 143,820,769 EXPENDITURES Current: Culture and recreation 16,180,638 (697,292) 15,483,346 Economic environment 13,391,492 - 13,391,492 General government 18,912,735 (3,988,472) 14,924,263 Health and human services 3,704,619 3,704,619 Judicial 4,179,892 - 4,179,892 Public safety 50,445,635 - 50,445,635 Transportation 13,700,709 (726,200) 12,974,509 Total current 120,515,720 (5,411,964) 115,103,756 Capital outlay: Culture and recreation 18,634 - 18,634 Economic environment 20,014 - 20,014 General government - - - Health and human services - - - Public safety 71,485 - 71,485 Transportation 67,922 - 67,922 Total capital outlay 178,055 - 178,055 Total expenditures 120,693,775 (5,411,964) 115,281,811 Excess (deficiency) of revenues over expenditures 28,538,958 - 28,538,958 OTHER FINANCING SOURCES (USES) Transfers in 1,846,210 - 1,846,210 Transfers out (13,657,841) - (13,657,841) Interfund loans - - - Proceeds from sale of capital assets 840 - 840 Insurance Recoveries 23,142 - 23,142 Lease Financing - - Total other financing sources (uses) (11,787,649) - (11,787,649) Net change in fund balances $ 16,751,309 $ - $ 16,751,309 2023 Annual Comprehensive Financial Report City of Renton, Washington Required Supplementary Information, 5-3 PERS Plan 1 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013* City's proportion of the net pension liability/(asset)0.264064%0.273106%0.244828%0.262379%0.268500%0.271486%0.282530%0.276331%0.275830%0.273241%N/A City's proportionate share of the net pension liability/(asset)**6,027,873$ 7,604,273$ 2,989,923$ 9,263,396$ 10,324,778$ 12,124,657$ 13,406,269$ 14,840,276$ 14,428,474$ 13,764,644$ N/A City's covered payroll 49,375,627$ 44,060,001$ 37,629,142$ 39,795,650$ 37,595,653$ 36,344,451$ 35,481,222$ 32,889,898$ 31,005,185$ 29,656,856$ N/A City's proportionate share of the net pension liability/(asset) as a percentage of its covered payroll 12.21%17.26%7.95% 23.28% 27.46% 33.36% 37.78% 45.12% 46.54% 46.41% N/A Plan fiduciary net position as a percentage of the total pension liability 80.16%76.56% 88.74% 68.64% 67.12% 63.22% 61.24% 57.03% 59.10% 61.19% N/A * This schedule will be built prospectively until it contains ten years of data. Prior years' information is unavailable. ** 2016 amount includes $280,481 in net pension liability transferred to the RFA on 6/30/16 to avoid skewing percentage of covered payroll ratio. City of Renton Schedule of the City's Proportionate Share of the Net Pension Liability/(Asset) Measurement Date of June 30 Last 10 Fiscal Years 2023 Annual Comprehensive Financial Report City of Renton, Washington Required Supplementary Information, 5-4 City of Renton Schedule of the City's Proportionate Share of the Net Pension Liability/(Asset) Measurement Date of June 30 Last 10 Fiscal Years PERS Plan 2/3 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013* City's proportion of the net pension liability/(asset)0.337498%0.352756%0.312116%0.338648%0.342614%0.344584%0.356727%0.343835%0.345072%0.337183%N/A City's proportionate share of the net pension liability/(asset)**(13,832,973)$ (13,082,948)$ (31,091,776)$ 4,331,115$ 3,327,947$ 5,883,465$ 12,394,558$ 17,311,821$ 12,329,619$ 6,815,686$ N/A City's covered payroll 48,944,034$ 43,737,495$ 37,331,068$ 39,490,308$ 37,260,677$ 36,036,413$ 35,045,479$ 32,370,185$ 30,618,109$ 29,147,610$ N/A City's proportionate share of the net pension liability/(asset) as a percentage of its covered payroll -28.26%-29.91%-83.29% 10.97%8.93% 16.33% 35.37% 53.48% 40.27% 23.38% N/A Plan fiduciary net position as a percentage of the total pension liability 107.02% 106.73% 120.29% 97.22% 97.77% 95.77% 90.97% 85.82% 89.20% 93.29% N/A * This schedule will be built prospectively until it contains ten years of data. Prior years' information is unavailable. ** 2016 amount includes $327,194 in net pension liability transferred to the RFA on 6/30/16 to avoid skewing percentage of covered payroll ratio. 2023 Annual Comprehensive Financial Report City of Renton, Washington Required Supplementary Information, 5-5 City of Renton Schedule of the City's Proportionate Share of the Net Pension Liability/(Asset) Measurement Date of June 30 Last 10 Fiscal Years PSERS Plan 2 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013* City's proportion of the net pension liability/(asset)0.055615%0.047808%0.043972%0.049734%0.055527%0.057762%0.065808%0.065158%0.042991%0.464430%N/A City's proportionate share of the net pension liability/(asset)(58,974)$ (34,183)$ (101,021)$ (6,843)$ (7,221)$ 716$ 27,967$ 11,892$ 7,846$ (6,725)$ N/A City's covered payroll 431,593$ 322,506$ 298,074$ 305,343$ 255,388$ 226,589$ 233,001$ 211,427$ 124,200$ 125,311$ N/A City's proportionate share of the net pension liability/(asset) as a percentage of its covered payroll -13.66% -10.60% -33.89%-2.24%-2.83%0.32% 12.00%5.62%6.32%-5.37% N/A Plan fiduciary net position as a percentage of the total pension liability 107.90% 105.96% 123.67% 101.68% 101.85% 99.79% 90.41% 95.08% 95.08% 105.01% N/A * This schedule will be built prospectively until it contains ten years of data. Prior years' information is unavailable. 2023 Annual Comprehensive Financial Report City of Renton, Washington Required Supplementary Information, 5-6 City of Renton Schedule of the City's Proportionate Share of the Net Pension Liability/(Asset) Measurement Date of June 30 Last 10 Fiscal Years LEOFF Plan 1 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013* City's proportion of the net pension liability/(asset)0.249031%0.249474%0.244279%0.239644%0.235664%0.233551%0.235931%0.231059%0.229885%0.225836%N/A City's proportionate share of the net pension liability/(asset)**(7,391,300)$ (7,156,444)$ (8,367,929)$ (4,525,699)$ (4,658,161)$ (4,240,123)$ (2,430,764)$ (2,784,772)$ (2,770,622)$ (2,738,919)$ N/A State's proportionate share of the net pension liability/(asset) associated with the City (49,994,570) (48,406,009) (56,600,464) (30,611,716) (31,507,679) (28,680,087) (24,212,271) (16,524,364) (18,740,418) (18,525,980) N/A Total (57,385,870)$ (55,562,453)$ (64,968,393)$ (35,137,415)$ (36,165,840)$ (32,920,210)$ (26,643,035)$ (19,309,136)$ (21,511,040)$ (21,511,040)$ N/A City's covered payroll -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ City's proportionate share of the net pension liability/(asset) as a percentage of its covered payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Plan fiduciary net position as a percentage of the total pension liability 175.99% 169.62% 187.45% 146.88% 148.78% 144.42% 123.74% 127.36% 127.36% 127.36% N/A * This schedule will be built prospectively until it contains ten years of data. Prior years' information is unavailable. ** 2016 amount includes $1,325,025 in net pension asset transferred to the RFA on 6/30/16 to avoid skewing percentage of covered payroll ratio. 2023 Annual Comprehensive Financial Report City of Renton, Washington Required Supplementary Information, 5-7 City of Renton Schedule of the City's Proportionate Share of the Net Pension Liability/(Asset) Measurement Date of June 30 Last 10 Fiscal Years LEOFF Plan 2 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013* City's proportion of the net pension liability/(asset)0.446469%0.420420%0.395321%0.430979%0.445635%0.451824%0.468330%0.947284%0.954715%0.947521%N/A City's proportionate share of the net pension liability/(asset)**(10,708,997)$ (11,425,746)$ (22,961,880)$ (8,791,342)$ (10,323,995)$ (9,173,012)$ (2,723,948)$ (9,736,185)$ (9,812,561)$ (12,574,011)$ N/A State's proportionate share of the net pension liability/(asset) associated with the City (6,838,655) (7,370,853) (14,812,919) (5,621,397) (6,760,833) (5,939,352) (4,215,723) (1,592,656) (925,241) (870,262) N/A Total (17,547,652)$ (18,796,599)$ (37,774,799)$ (14,412,739)$ (17,084,828)$ (15,112,364)$ (6,939,671)$ (11,328,841)$ (10,737,802)$ (13,444,273)$ N/A City's covered payroll 19,362,734$ 16,702,560$ 14,998,612$ 16,022,905$ 15,336,814$ 14,669,121$ 14,650,540$ 28,694,750$ 27,709,532$ 26,365,930$ -$ City's proportionate share of the net pension liability/(asset) as a percentage of its covered payroll -55.31%-68.41% -153.09% -54.87% -67.32% -62.53% -18.59% -33.93% -35.41% -47.69% N/A Plan fiduciary net position as a percentage of the total pension liability 113.17% 116.09% 142.00% 115.83% 119.43% 118.50% 106.04% 111.67% 111.67% 116.75% N/A * This schedule will be built prospectively until it contains ten years of data. Prior years' information is unavailable. ** 2016 amount includes $3,066,692 in net pension asset transferred to the RFA on 6/30/16 to avoid skewing percentage of covered payroll ratio. 2023 Annual Comprehensive Financial Report City of Renton, Washington Required Supplementary Information, 5-8 City of Renton Schedule of Employer Contributions WA Department of Retirement Systems As of December 31 Last 10 Fiscal Years PERS Plan 1 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Contractually Required Contribution 1,672,293$ 1,688,345$ 1,742,267$ 1,887,308$ 1,926,964$ 1,879,300$ 1,717,805$ 1,619,494$ 2,190,238$ 1,253,454$ N/A Contributions in relation to the contractually required contribution 1,672,293 1,688,345 1,742,267 1,887,308 1,926,964 1,879,300 1,717,805 1,619,494 2,190,238 1,253,454 N/A Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ N/A Covered payroll 49,375,627$ 44,932,224$ 40,226,475$ 39,386,689$ 38,826,806$ 37,103,778$ 35,120,529$ 33,737,587$ 48,318,549$ 30,448,215$ N/A Contributions as a percentage of covered payroll 3.39%3.76%4.33%4.79%4.96%5.06%4.89%4.80%4.53%4.12% N/A PERS Plan 2/3 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Contractually Required Contribution 3,112,888$ 2,833,167$ 2,872,166$ 3,095,333$ 2,964,353$ 2,752,176$ 2,375,793$ 2,067,865$ 2,743,908$ 1,490,022$ N/A Contributions in relation to the contractually required contribution 3,112,888 2,833,167 2,872,166 3,095,333 2,964,353 2,752,176 2,375,793 2,067,865 2,743,908 1,490,022 N/AContribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ N/A Covered payroll 48,944,034$ 44,544,778$ 39,919,026$ 39,082,343$ 38,495,775$ 36,791,404$ 34,783,770$ 33,263,999$ 47,552,982$ 29,821,815$ N/A Contributions as a percentage of covered payroll 6.36%6.36%7.19%7.92%7.70%7.48%6.83%6.22%5.77% 5.00%N/A PSERS Plan 2 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Contractually Required Contribution 28,681$ 25,319$ 21,192$ 21,913$ 20,872$ 15,723$ 14,929$ 14,489$ 18,418$ 7,845$ N/A Contributions in relation to the contractually required contribution 28,681 25,319 21,192 21,913 20,872 15,723 14,929 14,489 18,418 7,845 N/A Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ N/A Covered payroll 431,593$ 387,446$ 307,449$ 304,345$ 292,650$ 229,922$ 224,038$ 219,869$ 282,407$ 122,185$ N/A Contributions as a percentage of covered payroll 6.65%6.53%6.89%7.20%7.13%6.84%6.66%6.59%6.52% 6.42%N/A LEOFF Plan 2 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Contractually Required Contribution 998,109$ 947,993$ 820,173$ 836,869$ 840,501$ 801,240$ 715,573$ 1,049,917$ 2,160,553$ 1,368,037$ N/A Contributions in relation to the contractually required contribution 998,109 947,993 820,173 836,869 840,501 801,240 715,573 1,049,917 2,160,553 1,368,037 N/AContribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ N/A Covered payroll 19,362,734$ 18,322,206$ 15,649,942$ 15,936,186$ 15,818,413$ 14,805,412$ 13,896,060$ 20,790,373$ 42,778,479$ 27,089,783$ N/A Contributions as a percentage of covered payroll 5.15%5.17%5.24%5.25%5.31%5.41%5.15%5.05%5.05% 5.05%N/A Note to schedule: This schedule will be build prospectively until it contains ten years of data. Prior years' information is unavailable 2023 Annual Comprehensive Financial Report City of Renton, Washington Required Supplementary Information, 5-9 City of Renton Schedule of Changes in Net Pension Liability and Related Ratios Firefighters' Pension Fund Last 10 Fiscal Years $ Thousands 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Total Pension Liability Service Cost -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ N/A Interest on Total Pension Liability 84 54 45 62 100 94 103 106 109 112 N/A Effect of Plan Changes - - - - - - - - - - N/A Effect of Economic/Demographic Gains or (Losses)(3) - 533 - (331) - - (29) - - N/A Effect of Assumption Changes or Inputs 3 (292) 123 127 207 (94) 52 (125) - - N/A Benefit payments (253) (223) (227) (210) (194) (193) (240) (208) (205) (204) N/A Net Change in Total Pension Liability (169) (461) 474 (20) (219) (192) (84) (256) (96) (92) N/A Total Pension Liability - Beginning 2,366 2,827 2,353 2,373 2,592 2,784 2,868 3,125 3,221 3,313 N/ATotal Pension Liability - Ending (a)2,197$ 2,366$ 2,827$ 2,353$ 2,373$ 2,592$ 2,784$ 2,868$ 3,125$ 3,221$ N/A Plan Fiduciary Net Position Employer Contributions -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ N/A Contributions from State Fire Insurance Premium Tax 200 183 172 166 155 154 151 148 146 143 N/A Investment Income Net of Investment Expenses 425 (109) (35) 267 294 121 114 136 134 394 N/A Benefit payments (253) (223) (227) (210) (194) (193) (240) (208) (205) (204) N/A Medical Payments from Fund - -- -- -- -- -N/A Administrative Expense (14) (3) (12) (3) (12) - (12) - (12) (1) N/A Net Change in plan fiduciary net position 358 (153) (103) 220 242 83 13 76 63 332 N/A Plan fiduciary net position - beginning 9,909 10,062 10,165 9,945 9,703 9,619 9,607 9,531 9,468 9,136 N/APlan fiduciary net position - ending (b)10,267 9,909 10,062 10,165 9,945 9,703 9,619 9,607 9,531 9,468 N/A Net pension liability - ending =(a)-(b)(8,070)$ (7,543)$ (7,235)$ (7,811)$ (7,572)$ (7,111)$ (6,835)$ (6,739)$ (6,406)$ (6,247)$ N/A Fiduciary net position as a percentage of the total pension liability 467.32% 418.81% 355.93% 431.95% 419.09% 374.34% 345.51% 334.97% 304.99% 293.95% N/A Covered Payroll -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ N/A Net pension liability as a percentage of covered payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Note to schedule: This schedule will be build prospectively until it contains ten years of data. Prior years' information is unavailable 2023 Annual Comprehensive Financial Report City of Renton, Washington Required Supplementary Information, 5-10 City of Renton Schedule of Employer Contributions Firefighters' Pension Fund Last 10 Fiscal Years 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 199,566 182,841 171,853 165,917 155,413 154,275 150,951 148,034 146,358 142,706 124,391 (199,566)$ (182,841)$ (171,853)$ (165,917)$ (155,413)$ (154,275)$ (150,951)$ (148,034)$ (146,358)$ (142,706)$ (124,391)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) Covered payroll Contribution as a percentage of covered payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Note: Contributions are a portion of State Fire Insurance Premium Taxes. 2023 Annual Comprehensive Financial Report City of Renton, Washington Required Supplementary Information, 5-11 City of Renton Schedule of Investment Returns Firefighters' Pension Fund December 31, 2023 Last 10 Fiscal Years Fiscal Year Ending December 31 Net Money-Weighted Rate of Return 2013 N/A 2014 4.31% 2015 1.42% 2016 1.43% 2017 1.19% 2018 1.26% 2019 3.03% 2020 2.68% 2021 -0.35% 2022 -1.08% 2023 4.30% 2023 Annual Comprehensive Financial Report City of Renton, Washington Required Supplementary Information, 5-12 City of Renton Schedule of Changes in Total OPEB Liability and Related Ratios LEOFF 1 Retiree Medical Benefits Last 10 Fiscal Years 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 -$ -$ -$ -$ -$ -$ N/A N/A N/A N/A N/A 1,059 695 839 1,062 1,692 1,576 N/A N/A N/A N/A N/A - - - - - - N/A N/A N/A N/A N/A (1,471) - (5,516) - (2,946) - N/A N/A N/A N/A N/A 3,680 (5,736) (1,089) 3,806 (859) (2,764) N/A N/A N/A N/A N/A (1,358) (1,511) (1,424) (1,618) (1,491) (1,586) N/A N/A N/A N/A N/A 1,910 (6,552) (7,190) 3,250 (3,605) (2,774) N/A N/A N/A N/A N/A 28,932 35,484 42,674 39,424 43,029 45,803 N/A N/A N/A N/A N/A 30,842$ 28,932$ 35,484$ 42,674$ 39,424$ 43,029$ N/A N/A N/A N/A N/A -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ Thousands Total OPEB Liability Service Cost Interest on Total OPEB Liability Changes of benefit terms Effect of Economic/Demographic Gains or (Losses) Effect of Assumption Changes or Inputs Expected benefit payments Net Change in Total OPEB Liability Total OPEB Liability - Beginning Total OPEB Liability - Ending Covered-employee Payroll Total OPEB liability as a percentage of covered-employee payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Notes to schedule: There are no assets accumulated in a trust compliant with GASB codification P22.101 or P52.101 to pay OPEB benefits. This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not rquired, and if prior years are not reported in accordance with the current GASB standards, they should not be reported. 2023 Annual Comprehensive Financial Report City of Renton, Washington Required Supplementary Information, 5-13 Non-Major Governmental Funds Special Revenue Funds HOUSING AND 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 and use tax is restricted for housing and related services, in accordance with RCW 82.14.530. HOTEL/MOTEL TAX 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 or Renton, as authorized under RCW 67.28.180. CABLE COMMUNICATIONS 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. SPRINGBROOK WETLANDS BANK The Springbrook Wetlands Fund was established for the purpose of providing accounting for the Springbrook Creek Wetland and Habitat Mitigation Bank project. The fund receives revenue by selling Wetlands credits which will be used to fund the ongoing maintenance of the wetland in perpetuity. POLICE SEIZURE The Police Seizure Fund was established 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. POLICE CSAM SEIZURE The Police CSAM Seizure Fund was established in 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. 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-1 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. FIRE IMPACT MITIGATION 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. Debt Service Funds GENERAL GOVERNMENTAL MISCELLANEOUS DEBT SERVICE This debt service fund accounts for the following outstanding debt issues: 2009 intergovernmental debt related to the Fire District #40 asset transfer as a result of the Benson Hill annexation. 2013 Limited Tax General Obligation qualified energy conservation bonds (QECB) which provided funding for streetlight improvements. 2015 (A) Limited Tax General Obligation refunding bonds refunded a portion of the 2006 limited tax general obligation bonds for the construction of South Lake Washington infrastructure improvements. 2019 limited tax general obligation bonds which are funding multiple parks capital projects. 2019 limited tax general obligation Local Revitalization Funding (LRF) bonds which are funding transportation capital projects within the South Lake Washington Local Revitalization Area. 2019 limited tax general obligation refunding bonds which refunded a portion of the 2009 (A & B) intergovernmental debt related to the acquisition, construction, and equipping of the SCORE facility. 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-2 Capital Project Funds COMMUNITY DEVELOPMENT IMPACT MITIGATION 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 expenditures are incurred. TRANSPORTATION IMPACT MITIGATION 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 expenditures are incurred. REET1 This fund accounts 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. REET2 This fund accounts 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. 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-3 Non-Major Proprietary Funds Enterprise Funds AIRPORT FUND The Airport Fund accounts for revenues and expenses for administration, debt services, operation, capital improvements, and maintenance of the Renton Municipal Airport and Will Rodger‐Wily Post Memorial Seaplane Base. Sources of support to the fund are leases, fuel charges, investment interest, and grant funding as available. GOLF COURSE FUND The Golf Course Fund was created after the City acquired the Maplewood Golf Course. The fund accounts for the operation, maintenance, debt service, and capital improvements of the facility. Internal Service Funds EQUIPMENT RENTAL FUND The Equipment Rental Fund accounts for the costs of maintaining and replacing all City vehicles and auxiliary equipment. In addition, this fund accounts for the City’s information technology, facilities and communications costs. All costs, including depreciation, are factors in calculating the rates that are charged to each user department. INSURANCE FUND The Insurance Fund provides accounting for self‐insurance services to all City departments, including provisions for losses on property, liability, worker’s compensation, unemployment compensation, and the health care program. Expenses are paid from the Insurance Fund and rates are charged to departments based on use and/or coverage requirements. 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-4 Special revenue funds Debt service funds Capital projects funds Total Nonmajor Governmental Funds ASSETS Cash & cash equivalents 8,936,278$ 3,515,846$ 5,044,541$ 17,496,665$ Investments at fair value 4,761,477 1,873,331 2,687,860 9,322,668 Receivables (net of allowance for uncollectible): Taxes 62,438 - 558,780 621,218 Customer accounts 22,083 - - 22,083 Interest & penalties 28,837 11,965 58,720 99,522 Due from other governments 790,483 - - 790,483 Total assets 14,601,596$ 5,401,142$ 8,349,901$ 28,352,639$ LIABILITIES Accounts payable 121,683$ 3,700$ -$ 125,383$ Retainage payable 15,974 - - 15,974 Unearned revenue 12,275 - - 12,275 Total liabilities 149,932 3,700 - 153,632 Total liabilities and deferred inflows of resources 149,932 3,700 - 153,632 FUND BALANCES (DEFICITS) Restricted 13,750,627 252,350 8,349,901 22,352,878 Committed 701,041 - - 701,041 Assigned - 5,145,092 - 5,145,092 Unassigned (4) - - (4) Total fund balances (deficits)14,451,664 5,397,442 8,349,901 28,199,007 Total liabilities and fund balances (deficits)14,601,596$ 5,401,142$ 8,349,901$ 28,352,639$ City of Renton Combining Governmental Balance Sheet Nonmajor Governmental Funds Summary by Fund Type December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-5 Housing and Supportive Services Hotel/Motel Tax Cable Communications Development Springbrook Wetlands Bank Police Seizure Police CSAM Seizure School District Impact Mitigation Fire Impact Mitigation Total Nonmajor Special Revenue Funds ASSETS Cash & cash equivalents 7,019,845$ 612,926$ 246,977$ 461,595$ 476,163$ 110,047$ 7,645$ 1,080$ 8,936,278$ Investments at fair value 3,740,351 326,583 131,596 245,950 253,712 58,636 4,074 575 4,761,477 Receivables (net of allowance for uncollectible): Taxes - 62,438 - - - - - - 62,438 Customer accounts - 10,000 12,083 - - - - - 22,083 Interest & penalties 22,237 2,365 1,063 1,639 1,046 433 53 1 28,837 Due from other governments 786,351 - - 4,132 - - - - 790,483 Total assets 11,568,784$ 1,014,312$ 391,719$ 713,316$ 730,921$ 169,116$ 11,772$ 1,656$ 14,601,596$ LIABILITIES Accounts payable -$ 55,170$ 6,397$ -$ 46,686$ -$ 11,770$ 1,660$ 121,683$ Retainage payable - - 15,974 - - - - - 15,974 Unearned revenue - - - 12,275 - - - - 12,275 Total liabilities - 55,170 22,371 12,275 46,686 - 11,770 1,660 149,932 Total liabilities and deferred inflows of resources - 55,170 22,371 12,275 46,686 - 11,770 1,660 149,932 FUND BALANCES (DEFICITS) Restricted 11,568,784 959,142 369,348 - 684,235 169,116 2 - 13,750,627 Committed - - - 701,041 - - - - 701,041 Unassigned - - - - - - - (4) (4) Total fund balances (deficits)11,568,784 959,142 369,348 701,041 684,235 169,116 2 (4) 14,451,664 Total liabilities and fund balances (deficits)11,568,784$ 1,014,312$ 391,719$ 713,316$ 730,921$ 169,116$ 11,772$ 1,656$ 14,601,596$ City of Renton Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-6 General Debt Total Nonmajor Debt service funds ASSETS Cash & cash equivalents 3,515,846$ 3,515,846$ Investments at fair value 1,873,331 1,873,331 Receivables (net of allowance for uncollectible): Interest & penalties 11,965 11,965 Total assets 5,401,142$ 5,401,142$ LIABILITIES Accounts payable 3,700$ 3,700$ Total liabilities 3,700 3,700 Total liabilities and deferred inflows of resources 3,700 3,700 FUND BALANCES (DEFICITS) Restricted 252,350 252,350 Assigned 5,145,092$ 5,145,092 Total fund balances (deficits)5,397,442 5,397,442 Total liabilities and fund balances (deficits)5,401,142$ 5,401,142$ City of Renton Combining Balance Sheet Nonmajor Debt service funds December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-7 Community Development Impact Mitigation Transportation Impact Mitigation REET1 REET2 Total Nonmajor Capital Projects Funds ASSETS Cash & cash equivalents 439,956$ 1,431,067$ 1,140,310$ 2,033,208$ 5,044,541$ Investments at fair value 234,420 762,509 607,586 1,083,345 2,687,860 Receivables (net of allowance for uncollectible): Taxes - - 279,390 279,390 558,780 Interest & penalties 5,113 20,698 12,479 20,430 58,720 Total assets 679,489$ 2,214,274$ 2,039,765$ 3,416,373$ 8,349,901$ FUND BALANCES (DEFICITS) Restricted 679,489 2,214,274 2,039,765 3,416,373 8,349,901 Total fund balances (deficits)679,489 2,214,274 2,039,765 3,416,373 8,349,901 Total liabilities and fund balances (deficits)679,489$ 2,214,274$ 2,039,765$ 3,416,373$ 8,349,901$ Combining Balance Sheet Nonmajor Capital Projects Funds December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-8 Special Revenue Funds Debt Service Funds Capital Projects Funds Total Nonmajor Governmental Funds REVENUES Taxes 5,023,146$ -$ 4,950,182$ 9,973,328$ Licenses and permits 51,405 - - 51,405 Intergovernmental revenues (4,132) 38,319 - 34,187 Charges for services 225,321 - 948,833 1,174,154 Fines and forfeits 970 - - 970 Contributions 517,376 - - 517,376 Investment earnings 487,069 206,974 866,647 1,560,690 Total revenues 6,301,155 245,293 6,765,662 13,312,110 EXPENDITURES Current: Culture and recreation 88,601 - - 88,601 Economic environment 421,344 - - 421,344 General government 385,621 - - 385,621 Health and human services 5,238 - - 5,238 Public safety 88,452 - - 88,452 Debt service: Principal payment - 4,453,188 - 4,453,188 Interest payment - 1,110,801 - 1,110,801 Capital outlay: Culture and recreation 73,733 - - 73,733 Health and human services 74,831 - - 74,831 Total expenditures 1,137,820 5,563,989 - 6,701,809 Excess (deficiency) of revenues over expenditures 5,163,335 (5,318,696) 6,765,662 6,610,301 OTHER FINANCING SOURCES (USES) Transfer in - 5,515,851 - 5,515,851 Transfers out (2,625,376) - (16,026,522) (18,651,898) Proceeds from sale of capital assets 247,852 - - 247,852 Total other financing sources (uses)(2,377,524) 5,515,851 (16,026,522) (12,888,195) Net change in fund balances 2,785,811 197,155 (9,260,860) (6,277,894) Fund balances - January 1 11,665,853 5,200,287 17,610,761 34,476,901 Fund balances - December 31 14,451,664$ 5,397,442$ 8,349,901$ 28,199,007$ City of Renton Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Summary by Fund Type For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-9 Housing and Supportive Services Hotel/Motel TaxCable Communications DevelopmentSpringbrook Wetlands Bank Police Seizure Police CSAM SeizureSchool District Impact Mitigation Fire Impact MitigationTotal Nonmajor Special Revenue FundsREVENUESTaxes4,483,295$                      539,851$                           ‐ $                                     ‐$                                       ‐$                                       ‐$                                       ‐$                                       ‐$                                       5,023,146$                      Licenses and permits‐                                          ‐                                         51,405                               ‐                                          ‐                                          ‐                                          ‐                                          ‐                                         51,405                              Intergovernmental revenues‐                                          ‐                                          ‐                                         (4,132)                                ‐                                          ‐                                          ‐                                          ‐                                         (4,132)                               Charges for services‐                                          ‐                                          ‐                                          ‐                                          ‐                                          ‐                                         185,062                            40,259                              225,321                            Fines and forfeits‐                                          ‐                                          ‐                                          ‐                                          ‐                                         970                                     ‐                                          ‐                                         970                                    Contributions‐                                         25,000                              ‐                                         ‐                                         492,376                            ‐                                         ‐                                         ‐                                         517,376                            Investment earnings321,906                            36,707                              18,513                              23,881                              14,764                              7,216                                852                                    63,230                              487,069                            Total revenues4,805,201                         601,558                            69,918                              19,749                              507,140                            8,186                                185,914                            103,489                            6,301,155                         EXPENDITURESCurrent:Culture and recreation‐                                          ‐                                         88,601                               ‐                                          ‐                                          ‐                                          ‐                                          ‐                                         88,601                              Economic environment29,160                              376,433                            ‐                                         15,751                              ‐                                         ‐                                         ‐                                         ‐                                         421,344                            General government‐                                         ‐                                         ‐                                         ‐                                         ‐                                         ‐                                         185,600                            200,021                            385,621                            Health and human services‐                                          ‐                                          ‐                                          ‐                                          ‐                                         5,238                                 ‐                                          ‐                                         5,238                                Public safety‐                                          ‐                                          ‐                                          ‐                                         83,864                              4,588                                 ‐                                          ‐                                         88,452                              Capital outlay:Culture and recreation‐                                          ‐                                         73,733                               ‐                                          ‐                                          ‐                                          ‐                                          ‐                                         73,733                              Public safety‐                                          ‐                                          ‐                                          ‐                                         74,831                              ‐                                         ‐                                         ‐                                         74,831                              Total expenditures29,160                              376,433                            162,334                            15,751                              158,695                            9,826                                185,600                            200,021                            1,137,820                         Excess (deficiency) of revenues over expenditures4,776,041                         225,125                            (92,416)                             3,998                                348,445                            (1,640)                               314                                    (96,532)                             5,163,335                         OTHER FINANCING SOURCES (USES)Transfers out‐                                         (30,000)                              ‐                                          ‐                                          ‐                                          ‐                                          ‐                                         (2,595,376)                       (2,625,376)                       Proceeds from sale of capital assets‐                                          ‐                                          ‐                                         247,852                             ‐                                          ‐                                          ‐                                          ‐                                         247,852                            Total other financing sources (uses)‐                                         (30,000)                             ‐                                         247,852                            ‐                                         ‐                                         ‐                                         (2,595,376)                       (2,377,524)                       Net change in fund balances4,776,041                         195,125                            (92,416)                             251,850                            348,445                            (1,640)                               314                                    (2,691,908)                       2,785,811                         Fund balances ‐ January 16,792,743                         764,017                            461,764                            449,191                            335,790                            170,756                            (312)                                  2,691,904                         11,665,853                      Fund balances ‐ December 3111,568,784$                    959,142$                          369,348$                          701,041$                          684,235$                          169,116$                          2$                                      (4)$                                    14,451,664$                    City of RentonCombining Statement of Revenues, Expenditures and Changes in Fund BalancesNonmajor Special Revenue FundsFor the Year Ended December 31, 20232023 Annual Comprehensive Financial ReportCity of Renton, WashingtonCombining Statements and Schedules, 6-10 General Debt Total Nonmajor Debt Service Funds REVENUES Intergovernmental revenues 38,319$ 38,319$ Investment earnings 206,974 206,974 Total revenues 245,293 245,293 EXPENDITURES Debt service: Principal payment 4,453,188 4,453,188 Interest payment 1,110,801 1,110,801 Total expenditures 5,563,989 5,563,989 Excess (deficiency) of revenues over expenditures (5,318,696) (5,318,696) OTHER FINANCING SOURCES (USES) Transfer in 5,515,851 5,515,851 Total other financing sources (uses)5,515,851 5,515,851 Net change in fund balances 197,155 197,155 Fund balances - January 1 5,200,287 5,200,287 Fund balances - December 31 5,397,442$ 5,397,442$ City of Renton Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Debt Service Funds For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-11 Community Development Impact Mitigation Transportation Impact Mitigation REET1 REET2 Total Nonmajor Capital Projects Funds REVENUES Taxes -$ -$ 2,475,091$ 2,475,091$ 4,950,182$ Charges for services 120,419 828,414 - - 948,833 Investment earnings 72,548 322,215 170,857 301,027 866,647 Total revenues 192,967 1,150,629 2,645,948 2,776,118 6,765,662 Excess (deficiency) of revenues over expenditures 192,967 1,150,629 2,645,948 2,776,118 6,765,662 OTHER FINANCING SOURCES (USES) Transfers out (1,090,000) (5,817,897) (3,715,000) (5,403,625) (16,026,522) Total other financing sources (uses)(1,090,000) (5,817,897) (3,715,000) (5,403,625) (16,026,522) Net change in fund balances (897,033) (4,667,268) (1,069,052) (2,627,507) (9,260,860) Fund balances - January 1 1,576,522 6,881,542 3,108,817 6,043,880 17,610,761 Fund balances - December 31 679,489$ 2,214,274$ 2,039,765$ 3,416,373$ 8,349,901$ City of Renton Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Projects Funds For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-12 Original Final Actual Variance with Final Budget REVENUES Intergovernmental revenues -$ 9,672,235$ 3,275,562$ (6,396,673)$ Charges for services - - 30,670 30,670 Contributions - - 29,512 29,512 Investment earnings - 612,105 837,911 225,806 Total revenues - 10,284,340 4,173,655 (6,110,685) EXPENDITURES Current: Culture and recreation 795,000 4,905,668 1,192,986 3,712,682 General government - 9,765,071 866,162 8,898,909 Total current 795,000 14,670,739 2,059,148 12,611,591 Capital outlay: Culture and recreation 145,000 17,292,948 11,651,586 5,641,362 Economic environment - 354,371 354,371 - General government 450,000 8,161,725 615,566 7,546,159 Health and human services - 634,079 24,928 609,151 Total capital outlay 595,000 26,443,123 12,646,451 13,796,672 Total expenditures 1,390,000 41,113,862 14,705,599 26,408,263 Excess (deficiency) of revenues over expenditures (1,390,000) (30,829,522) (10,531,944) 20,297,578 OTHER FINANCING SOURCES (USES) Transfer in 1,390,000 8,545,379 8,545,379 - Transfers out - (100,000) (100,000) - Total other financing sources (uses)1,390,000 8,445,379 8,445,379 - Net change in fund balances - (22,384,143) (2,086,565) 20,297,578 Fund balances - January 1 7,874 24,671,384 24,344,687 - Fund balances - December 31 7,874$ 2,287,241$ 22,258,122$ 19,970,881$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Municipal Facilities CIP For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-13 Original Final Actual Variance with Final Budget REVENUES Intergovernmental revenues -$ 520,000$ 520,000$ - $ Charges for services - - - - Contributions - 3,602,152 3,170,562 (431,590) Investment earnings - 64,521 129,285 64,764 Total revenues - 4,186,673 3,819,847 (366,826) EXPENDITURES Current: General government - - 4,398 (4,398) Total current - - 4,398 (4,398) Capital outlay: General government - 2,833,827 2,873,503 (39,676) Total capital outlay - 2,833,827 2,873,503 (39,676) Total expenditures - 2,833,827 2,877,901 (44,074) Excess (deficiency) of revenues over expenditures - 1,352,846 941,946 (410,900) OTHER FINANCING SOURCES (USES) Transfer in - 1,000,000 1,000,000 - Transfers out - (1,000,000) (900,000) 100,000 Total other financing sources (uses)- - 100,000 100,000 Net change in fund balances - 1,352,846 1,041,946 (310,900) Fund balances - January 1 3,303,320 2,795,295 2,737,103 - Fund balances - December 31 3,303,320$ 4,148,141$ 3,779,049$ (369,092)$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Family First Center For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-14 Original Final Actual Variance with Final Budget REVENUES Intergovernmental revenues - $ 31,622,424$ 9,391,196$ (22,231,228)$ Charges for services - 90,225 119,413 29,188 Contributions - 2,725,180 3,133,135 407,955 Investment earnings - 308,564 495,168 186,604 Miscellaneous revenue - - 307,523 307,523 Total revenues - 34,746,393 13,446,435 (21,299,958) EXPENDITURES Current: General government - - 731 (731) Transportation 400,000 4,852,715 566,104 4,286,611 Total current 400,000 4,852,715 566,835 4,285,880 Capital outlay: Transportation 2,562,000 52,126,320 18,820,199 33,306,121 Total capital outlay 2,562,000 52,126,320 18,820,199 33,306,121 Total expenditures 2,962,000 56,979,035 19,387,034 37,592,001 Excess (deficiency) of revenues over expenditures (2,962,000) (22,232,642) (5,940,599) 16,292,043 OTHER FINANCING SOURCES (USES) Transfer in 2,962,000 11,044,897 11,044,897 - Total other financing sources (uses)2,962,000 11,044,897 11,044,897 - Net change in fund balances - (11,187,745) 5,104,298 16,292,043 Fund balances - January 1 1,182,366 12,561,975 15,099,591 - Fund balances - December 31 1,182,366$ 1,374,230$ 20,203,889$ 18,829,659$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Capital Improvement For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-15 Original Final Actual Variance with Final Budget REVENUES Taxes 3,500,000$ 4,000,000$ 4,483,295$ 483,295$ Investment earnings - - 321,906 321,906 Total revenues 3,500,000 4,000,000 4,805,201 805,201 EXPENDITURES Current: Economic environment - 260,000 29,160 230,840 Total current - 260,000 29,160 230,840 Total expenditures - 260,000 29,160 230,840 Excess (deficiency) of revenues over expenditures 3,500,000 3,740,000 4,776,041 1,036,041 Net change in fund balances 3,500,000 3,740,000 4,776,041 1,036,041 Fund balances - January 1 4,951,729 6,110,390 6,792,743 - Fund balances - December 31 8,451,729$ 9,850,390$ 11,568,784$ 1,718,394$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing and Supportive Services For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-16 Original Final Actual Variance with Final Budget REVENUES Taxes 200,000$ 434,000$ 539,851$ 105,851$ Contributions - 25,000 25,000 - Investment earnings - 22,000 36,707 14,707 Total revenues 200,000 481,000 601,558 120,558 EXPENDITURES Current: Economic environment - 449,616 376,433 73,183 Total current - 449,616 376,433 73,183 Total expenditures - 449,616 376,433 73,183 Excess (deficiency) of revenues over expenditures 200,000 31,384 225,125 193,741 OTHER FINANCING SOURCES (USES) Transfers out - (30,000) (30,000) - Total other financing sources (uses)- (30,000) (30,000) - Net change in fund balances 200,000 1,384 195,125 193,741 Fund balances - January 1 335,214 712,384 764,017 - Fund balances - December 31 535,214$ 713,768$ 959,142$ 245,374$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Hotel/Motel Tax For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-17 Original Final Actual Variance with Final Budget REVENUES Licenses and permits 57,674$ 57,674$ 51,405$ (6,269)$ Investment earnings - - 18,513 18,513 Total revenues 57,674 57,674 69,918 12,244 EXPENDITURES Current: Culture and recreation 57,674 206,086 88,601 117,485 Total current 57,674 206,086 88,601 117,485 Capital outlay: Culture and recreation 40,000 49,500 73,733 (24,233) Total capital outlay 40,000 49,500 73,733 (24,233) Total expenditures 97,674 255,586 162,334 93,252 Excess (deficiency) of revenues over expenditures (40,000) (197,912) (92,416) 105,496 Net change in fund balances (40,000) (197,912) (92,416) 105,496 Fund balances - January 1 328,710 453,147 461,764 - Fund balances - December 31 288,710$ 255,235$ 369,348$ 114,113$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Cable Communications Development For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-18 Original Final Actual Variance with Final Budget REVENUES Intergovernmental revenues -$ 4,011$ (4,132)$ (8,143)$ Investment earnings - 10,515 23,881 13,366 Total revenues - 14,526 19,749 5,223 EXPENDITURES Current: Economic environment 40,000 40,000 15,751 24,249 Total current 40,000 40,000 15,751 24,249 Total expenditures 40,000 40,000 15,751 24,249 Excess (deficiency) of revenues over expenditures (40,000) (25,474) 3,998 29,472 OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets - 247,852 247,852 - Total other financing sources (uses)- 247,852 247,852 - Net change in fund balances (40,000) 222,378 251,850 29,472 Fund balances - January 1 414,630 454,628 449,191 - Fund balances - December 31 374,630$ 677,006$ 701,041$ 24,035$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Springbrook Wetlands Bank For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-19 Original Final Actual Variance with Final Budget REVENUES Contributions -$ 106,159$ 492,376$ 386,217$ Investment earnings - - 14,764 14,764 Total revenues - 106,159 507,140 400,981 EXPENDITURES Current: Public safety - 445,973 83,864 362,109 Total current - 445,973 83,864 362,109 Capital outlay: Health and human services - - 74,831 (74,831) Total capital outlay - - 74,831 (74,831) Total expenditures - 445,973 158,695 287,278 Excess (deficiency) of revenues over expenditures - - 348,445 688,259 Net change in fund balances - - 348,445 688,259 Fund balances - January 1 - 339,814 335,790 - Fund balances - December 31 - $ - $ 684,235$ 684,235$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Police Seizure For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-20 Original Final Actual Variance with Final Budget REVENUES Fines and forfeits -$ -$ 970$ 970$ Investment earnings - - 7,216 7,216 Total revenues - - 8,186 8,186 EXPENDITURES Current: Health and human services - 97,176 5,238 91,938 Public safety - 75,628 4,588 71,040 Total current - 172,804 9,826 162,978 Total expenditures - 172,804 9,826 162,978 Excess (deficiency) of revenues over expenditures - (172,804) (1,640) 171,164 Net change in fund balances - (172,804) (1,640) 171,164 Fund balances - January 1 - 172,804 170,756 - Fund balances - December 31 - $ -$ 169,116$ 169,116$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Police CSAM Seizure For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-21 Original Final Actual Variance with Final Budget REVENUES Charges for services 995,000$ 600,000$ 185,062$ (414,938)$ Investment earnings - - 852 852 Total revenues 995,000 600,000 185,914 (414,086) EXPENDITURES Current: General government 995,000 600,000 185,600 414,400 Total current 995,000 600,000 185,600 414,400 Total expenditures 995,000 600,000 185,600 414,400 Excess (deficiency) of revenues over expenditures - - 314 314 Net change in fund balances - - 314 314 Fund balances - January 1 12 - (312) - Fund balances - December 31 12$ -$ 2$ 2$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual School District Impact Mitigation For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-22 Original Final Actual Variance with Final Budget REVENUES Charges for services 400,000$ 200,000$ 40,259$ (159,741)$ Investment earnings - 31,000 63,230 32,230 Total revenues 400,000 231,000 103,489 (127,511) EXPENDITURES Current: General government - 359,811 200,021 159,790 Total current - 359,811 200,021 159,790 Total expenditures - 359,811 200,021 159,790 Excess (deficiency) of revenues over expenditures 400,000 (128,811) (96,532) 32,279 OTHER FINANCING SOURCES (USES) Transfers out (500,635) (2,595,377) (2,595,376) 1 Total other financing sources (uses)(500,635) (2,595,377) (2,595,376) 1 Net change in fund balances (100,635) (2,724,188) (2,691,908) 32,280 Fund balances - January 1 2,759,099 2,724,187 2,691,904 - Fund balances - December 31 2,658,464$ (1)$ (4)$ (3)$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fire Impact Mitigation For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-23 Original Final Actual Variance with Final Budget REVENUES Intergovernmental revenues 39,170$ 39,170$ 38,319$ (851)$ Investment earnings - 140,000 206,974 66,974 Total revenues 39,170 179,170 245,293 66,123 EXPENDITURES Debt service: Principal payment 2,329,482 4,453,189 4,453,188 1 Interest payment 1,136,466 1,112,501 1,110,801 1,700 Total debt service 3,465,948 5,565,690 5,563,989 1,701 Total expenditures 3,465,948 5,565,690 5,563,989 1,701 Excess (deficiency) of revenues over expenditures (3,426,778) (5,386,520) (5,318,696) 67,824 OTHER FINANCING SOURCES (USES) Transfer in 3,621,110 5,715,852 5,515,851 (200,001) Total other financing sources (uses)3,621,110 5,715,852 5,515,851 (200,001) Net change in fund balances 194,332 329,332 197,155 (132,177) Fund balances - January 1 5,410,174 5,262,665 5,200,287 - Fund balances - December 31 5,604,506$ 5,591,997$ 5,397,442$ (194,555)$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Debt For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-24 Original Final Actual Variance with Final Budget REVENUES Charges for services 86,500$ 86,500$ 120,419$ 33,919$ Investment earnings - 45,672 72,548 26,876 Total revenues 86,500 132,172 192,967 60,795 Excess (deficiency) of revenues over expenditures 86,500 132,172 192,967 60,795 OTHER FINANCING SOURCES (USES) Transfers out (50,000) (1,090,000) (1,090,000) - Total other financing sources (uses)(50,000) (1,090,000) (1,090,000) - Net change in fund balances 36,500 (957,828) (897,033) 60,795 Fund balances - January 1 1,439,298 1,595,389 1,576,522 - Fund balances - December 31 1,475,798$ 637,561$ 679,489$ 41,928$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Development Impact Mitigation For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-25 Original Final Actual Variance with Final Budget REVENUES Charges for services 1,780,000$ 511,152$ 828,414$ 317,262$ Investment earnings - 150,082 322,215 172,133 Total revenues 1,780,000 661,234 1,150,629 489,395 Excess (deficiency) of revenues over expenditures 1,780,000 661,234 1,150,629 489,395 OTHER FINANCING SOURCES (USES) Transfers out (750,000) (5,817,897) (5,817,897) - Total other financing sources (uses)(750,000) (5,817,897) (5,817,897) - Net change in fund balances 1,030,000 (5,156,663) (4,667,268) 489,395 Fund balances - January 1 6,352,476 6,964,011 6,881,542 - Fund balances - December 31 7,382,476$ 1,807,348$ 2,214,274$ 406,926$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Transportation Impact Mitigation For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-26 Original Final Actual Variance with Final Budget REVENUES Taxes 2,300,000$ 2,000,000$ 2,475,091$ 475,091$ Investment earnings - 96,157 170,857 74,700 Total revenues 2,300,000 2,096,157 2,645,948 549,791 Excess (deficiency) of revenues over expenditures 2,300,000 2,096,157 2,645,948 549,791 OTHER FINANCING SOURCES (USES) Transfers out - (3,715,000) (3,715,000) - Total other financing sources (uses)- (3,715,000) (3,715,000) - Net change in fund balances 2,300,000 (1,618,843) (1,069,052) 549,791 Fund balances - January 1 1,228,121 3,049,711 3,108,817 - Fund balances - December 31 3,528,121$ 1,430,868$ 2,039,765$ 608,897$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual REET 1 For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-27 Original Final Actual Variance with Final Budget REVENUES Taxes 2,300,000$ 2,000,000$ 2,475,091$ 475,091$ Investment earnings - 179,126 301,027 121,901 Total revenues 2,300,000 2,179,126 2,776,118 596,992 Excess (deficiency) of revenues over expenditures 2,300,000 2,179,126 2,776,118 596,992 OTHER FINANCING SOURCES (USES) Transfers out (3,403,625) (5,403,625) (5,403,625) - Total other financing sources (uses)(3,403,625) (5,403,625) (5,403,625) - Net change in fund balances (1,103,625) (3,224,499) (2,627,507) 596,992 Fund balances - January 1 4,152,027 6,019,961 6,043,880 - Fund balances - December 31 3,048,402$ 2,795,462$ 3,416,373$ 620,911$ Budgeted Amounts City of Renton Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual REET 2 For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-28 Airport Golf Course Total Nonmajor Enterprise Funds ASSETS Current assets: Cash & cash equivalents 7,399,681$ 1,610,577$ 9,010,258$ Investments at fair value 3,942,631 857,091 4,799,722 Receivables (net of allowance for uncollectible): Customer accounts 54,440 168,329 222,769 Interest & penalties 27,318 5,799 33,117 Due from other funds 16,606 14,578 31,184 Due from other governments 272,007 - 272,007 Supplies inventory - 41,504 41,504 Total current assets 11,712,683 2,697,878 14,410,561 Noncurrent assets: Net Pension Asset 235,161 296,026 531,187 Capital assets: Land 784,080 2,683,200 3,467,280 Construction in Progress 1,928,618 - 1,928,618 Capital assets (net)14,063,905 4,215,690 18,279,595 Intangible assets (net)25,400 - 25,400 Total noncurrent assets 17,037,164 7,194,916 24,232,080 Total assets 28,749,847 9,892,794 38,642,641 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions 193,888 244,071 437,959 Total deferred outflows of resources 193,888 244,071 437,959 Total assets and deferred outflows of resources 28,943,735 10,136,865 39,080,600 LIABILITIES Current liabilities: Accrued wages and benefits payable 45,225 64,592 109,817 Accounts payable 137,633 236,285 373,918 Retainage payable - 4,710 4,710 Customer deposits - 381,821 381,821 Unearned revenue 320,598 - 320,598 Leases payable 1,870 - 1,870 Compensated absences 23,200 65,067 88,267 Interfund loans - 44,982 44,982 Total current liabilities 528,526 797,457 1,325,983 Noncurrent liabilities: Leases payable 23,503 - 23,503 Compensated absences 11,236 35,539 46,775 Net pension liability 102,474 128,996 231,470 Interfund loans - 99,018 99,018 Total noncurrent liabilities 137,213 263,553 400,766 Total liabilities 665,739 1,061,010 1,726,749 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions 138,117 173,867 311,984 Deferred inflows related to leases - 117,546 117,546 Total deferred inflows of resources 138,117 291,413 429,530 Total liabilities and deferred inflows of resources 803,856 1,352,423 2,156,279 NET POSITION Net investment in capital assets 16,717,446 6,675,771 23,393,217 Restricted for: Pensions 235,161 296,026 531,187 Unrestricted 11,187,272 1,812,645 12,999,917 Total net position 28,139,879$ 8,784,442$ 36,924,321$ City of Renton Combining Statement of Net Position Nonmajor Enterprise Funds For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-29 Airport Golf Course Total Nonmajor Enterprise Funds OPERATING REVENUES Charges for services 4,800,061$ 3,526,548$ 8,326,609$ Total operating revenues 4,800,061 3,526,548 8,326,609 OPERATING EXPENSES Supplies 175,597 403,926 579,523 Personnel Services 1,113,343 1,818,789 2,932,132 Contracted Services 954,304 525,566 1,479,870 Taxes 4,148 19,384 23,532 Depreciation and amortization 1,009,067 299,232 1,308,299 Total operating expenses 3,256,459 3,066,897 6,323,356 Operating income (loss)1,543,602 459,651 2,003,253 NONOPERATING REVENUES (EXPENSES) Intergovernmental revenues 817,984 - 817,984 Miscellaneous revenue 1,361 167 1,528 Interest expense (602) (1,682) (2,284) Gain (loss) on disposal of capital assets (6,306) (28,080) (34,386) Investment earnings 421,590 91,663 513,253 Total nonoperating revenues (expenses)1,234,027 62,068 1,296,095 Income (loss) before contributions and transfers 2,777,629 521,719 3,299,348 Transfer in - 115,000 115,000 Transfers out (525,339) - (525,339) Change in net position 2,252,290 636,719 2,889,009 Total net position - January 1 25,887,589 8,147,723 34,035,312 Total net position - December 31 28,139,879$ 8,784,442$ 36,924,321$ City of Renton Combining Statement of Revenues, Expenses, and Changes in Net Position Nonmajor Enterprise Funds For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-30 T0TAL NON-MAJOR AIRPORT GOLF COURSE ENTERPRISE FUNDS CASH FLOWS FROM OPERATING ACTIVITIES: Cash received for services 5,699,024$ 3,551,870$ 9,250,894$ Cash paid to suppliers for goods & services (993,053) (977,808) (1,970,861) Cash paid to employees (1,226,744) (1,933,715) (3,160,459) Other non-operating receipts 1,361 167 1,528 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 3,480,588 640,514 4,121,102 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds - 115,000 115,000 Transfers to other funds (525,339) - (525,339) Operating grants and contributions 16,038 - 16,038 NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES (509,301) 115,000 (394,301) CASH FLOWS FROM CAPITALFINANCING ACTIVITIES: Proceeds from the sale of equipment (1) - (1) Acquisition & construction of capital assets (1,427,440) (329,643) (1,757,083) Capital grants 529,939 - 529,939 Leases payable (1,829) - (1,829) NET CASH PROVIDED (USED) BY CAPITAL FINANCING ACTIVITIES (899,331) (329,643) (1,228,974) CASH FLOWS FROM INVESTING ACTIVITIES: Payments for investments (1,281,907) (271,216) (1,553,123) Interest on investments 329,000 71,211 400,211 NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (952,907) (200,005) (1,152,912) NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS 1,119,049 225,866 1,344,915 CASH & CASH EQUIVALENTS, JANUARY 1 6,280,632 1,384,711 7,665,343 RESTRICTED CASH, JANUARY 1 - - - CASH & CASH EQUIVALENTS, DECEMBER 31 7,399,681$ 1,610,577$ 9,010,258$ ENTERPRISE FUNDS BUSINESS-TYPE ACTIVITIES City of Renton Combining Statement of Cash Flows Non-Major Enterprise Funds For the Year Ended December 31, 2023 Page 1 of 2 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-31 TOTAL NON-MAJOR AIRPORT GOLF COURSE ENTERPRISE FUNDS RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss)1,543,602$ 459,651$ 2,003,253$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation & amortization 1,009,067 299,232 1,308,299 (Increase) decrease in Other non-operating revenue 1,361 167 1,528 (Increase) decrease in accounts receivable 759,680 37,768 797,448 (Increase) decrease in due from other funds (16,606) (14,578) (31,184) (Increase) decrease in inventory & prepaid items 149,837 19,245 169,082 (Increase) decrease in net pension assets and deferred outflows related to pensions 34,994 67,331 102,325 Increase (decrease) in operating accounts payable 8,367 (1,960) 6,407 Increase (decrease) in interfund loans (602) (46,217) (46,819) Increase (decrease) in customer deposits - 12,896 12,896 Increase (decrease) in unearned revenues 139,283 - 139,283 Increase (decrease) in accrued employee leave benefits (999) 22,751 21,752 Increase (decrease) in net pension liability and deferred inflows related to pensions (147,396) (205,008) (352,404) (Increase) decrease in deferred inflows related to leases - (10,764) (10,764) Total adjustments 1,936,986 180,863 2,117,849 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 3,480,588$ 640,514$ 4,121,102$ NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES Depreciation & amortization 1,009,067$ 299,232$ 1,308,299$ Increase (decrease) in fair value of investments 75,458$ 16,699$ 92,157$ ENTERPRISE FUNDS City of Renton Combining Statement of Cash Flows Non-Major Enterprise Funds For the Year Ended December 31, 2023 Page 2 of 2 BUSINESS-TYPE ACTIVITIES 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-32 Equipment Rental Insurance Total Internal Service Funds ASSETS Current assets: Cash & cash equivalents 19,404,274$ 35,220,077$ 54,624,351$ Investments at fair value 10,339,088 18,766,148 29,105,236 Receivables (net of allowance for uncollectible): Customer accounts 52,257 748,474 800,731 Interest & penalties 54,810 131,340 186,150 Supplies inventory 310,142 - 310,142 Prepayments 270,156 649,020 919,176 Total current assets 30,430,727 55,515,059 85,945,786 Noncurrent assets: Net Pension Asset 1,809,354 228,244 2,037,598 Capital assets: Construction in Progress 195,178 - 195,178 Capital assets (net)9,432,275 - 9,432,275 Intangible assets (net)1,534,375 - 1,534,375 Total noncurrent assets 12,971,182 228,244 13,199,426 Total assets 43,401,909 55,743,303 99,145,212 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions 1,491,798 188,184 1,679,982 Total deferred outflows of resources 1,491,798 188,184 1,679,982 Total assets and deferred outflows of resources 44,893,707 55,931,487 100,825,194 LIABILITIES Current liabilities: Accrued wages and benefits payable 371,405 36,667 408,072 Accounts payable 469,824 332,765 802,589 Due to other funds 1,762 40,603 42,365 Retainage payable 41,264 - 41,264 Claims incurred but not reported - 2,976,829 2,976,829 Leases payable 471,150 - 471,150 Compensated absences 317,399 35,870 353,269 OPEB Liability - 1,229,311 1,229,311 Total current liabilities 1,672,804 4,652,045 6,324,849 Noncurrent liabilities: Leases payable 425,613 - 425,613 Compensated absences 159,819 19,815 179,634 Net pension liability 788,445 99,460 887,905 OPEB liability - 29,613,203 29,613,203 Total noncurrent liabilities 1,373,877 29,732,478 31,106,355 Total liabilities 3,046,681 34,384,523 37,431,204 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions 1,062,692 134,055 1,196,747 Total deferred inflows of resources 1,062,692 134,055 1,196,747 Total liabilities and deferred inflows of resources 4,109,373 34,518,578 38,627,951 NET POSITION Net investment in capital assets 10,264,657 - 10,264,657 Restricted for: Pensions 1,809,364 228,244 2,037,608 Unrestricted 28,710,313 21,184,665 49,894,978 Total net position 40,784,334$ 21,412,909$ 62,197,243$ City of Renton Combining Statement of Net Position Nonmajor Internal Service Funds For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-33 Equipment Rental Insurance Total Internal Service Funds OPERATING REVENUES Charges for services 19,329,877$ 18,879,812$ 38,209,689$ Licenses and permits 225,260 - 225,260 Total operating revenues 19,555,137 18,879,812 38,434,949 OPERATING EXPENSES Supplies 3,680,193 2,973 3,683,166 Personnel services 8,233,479 1,099,550 9,333,029 Contracted services 6,364,678 1,151,538 7,516,216 Insurance - 17,396,813 17,396,813 Taxes 435 4,205 4,640 Depreciation and amortization 2,791,873 - 2,791,873 Total operating expenses 21,070,658 19,655,079 40,725,737 Operating income (loss)(1,515,521) (775,267) (2,290,788) NONOPERATING REVENUES (EXPENSES) Intergovernmental revenues - 37,276 37,276 Miscellaneous revenue 13,005 989,054 1,002,059 Interest expense (3,526) - (3,526) Insurance Recoveries 45,746 557,907 603,653 Gain (loss) on sale of capital assets (88,010) - (88,010) Investment earnings 923,975 2,147,788 3,071,763 Total nonoperating revenues (expenses)891,190 3,732,025 4,623,215 Income (loss) before contributions and transfers (624,331) 2,956,758 2,332,427 Transfer in 5,760,261 1,136,346 6,896,607$ Transfers out - (958,813) (958,813) Capital contributions 3,173,217 - 3,173,217 Change in net position 8,309,147 3,134,291 11,443,438 Total net position - January 1 32,475,187 18,278,618 50,753,805$ Total net position - December 31 40,784,334$ 21,412,909$ 62,197,243$ City of Renton Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds For the Year Ended December 31, 2023 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-34 TOTAL EQUIPMENT INSURANCE INTERNAL RENTAL FUND SERVICE FUNDS CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from other funds for services $19,521,763 $18,264,895 $37,786,658 Cash paid to suppliers for goods & services (10,307,440) (16,542,557) (26,849,997) Cash paid to employees (9,085,577) (1,227,141) (10,312,718) Other non-operating receipts 45,746 1,546,961 1,592,707 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 174,492 2,042,158 2,216,650 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 5,760,261 1,136,346 6,896,607 Transfers to other funds - (958,813) (958,813) Operating grants and contributions 13,005 37,276 50,281 NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES 5,773,266 214,809 5,988,075 CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: Acquisition & construction of capital assets (4,838,675) - (4,838,675) Capital replacement reserves received 3,173,217 - 3,173,217 Principal payments on leases 810,102 - 810,102 Interest payments on leases (3,526) - (3,526) NET CASH PROVIDED (USED) BY CAPITAL FINANCING ACTIVITIES (858,882) - (858,882) CASH FLOWS FROM INVESTING ACTIVITIES: Payments for investments (3,205,343) (3,837,327) (7,042,670) Interest on investments and loans 686,339 1,623,675 2,310,014 NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (2,519,004) (2,213,652) (4,732,656) NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS 2,569,872 43,315 2,613,187 CASH & CASH EQUIVALENTS, JANUARY 1 16,834,402 35,176,762 52,011,164 CASH & CASH EQUIVALENTS, DECEMBER 31 $19,404,274 $35,220,077 $54,624,351 INTERNAL SERVICE FUNDS Combining Statement of Cash Flows Internal Service Funds For the Year Ended December 31, 2023 Page 1 of 2 City of Renton GOVERNMENTAL ACTIVITIES 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-35 TOTAL EQUIPMENT INSURANCE INTERNAL RENTAL FUND SERVICE FUNDS RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss)(1,515,521)$ (775,267)$ (2,290,788)$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation & amortization 2,791,873 - 2,791,873 (Increase) decrease in Other non-operating revenue 45,746 1,546,961 1,592,707 (Increase) decrease in accounts receivable (33,374) (614,917) (648,291) (Increase) decrease in inventory & prepaid items (314,355) (171,528) (485,883) (Increase) decrease in net pension assets and deferred outflows related to pensions 160,932 (27,986) 132,946 Increase (decrease) in accrued employee wages and benefits 30,475 (8,344) 22,131 Increase (decrease) in operating accounts payable 20,549 109,117 129,666 Increase (decrease) in operating retainage payable 31,672 - 31,672 Increase (decrease) in due to other funds - 40,603 40,603 Increase (decrease) in other short-term liabilities - 124,243 124,243 Increase (decrease) in net pension liability and deferred inflows related to pensions (1,043,505) (91,261) (1,134,766) Increase (decrease) in OPEB liability - 1,910,537 1,910,537 Total adjustments 1,690,013 2,817,425 4,507,438 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 174,492$ 2,042,158$ 2,216,650$ NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES Depreciation & amortization 2,791,873$ -$ 2,791,873$ Increase (decrease) in fair value of investments 204,062$ 448,722$ 652,784$ For the Year Ended December 31, 2023 Combining Statement of Cash Flows Internal Service Funds Page 2 of 2 City of Renton INTERNAL SERVICE FUNDS GOVERNMENTAL ACTIVITIES 2023 Annual Comprehensive Financial Report City of Renton, Washington Combining Statements and Schedules, 6-36 STATISTICAL SECTION December 31, 2023 Presentations included in the Statistical Section of the Annual Comprehensive Financial Report (ACFR) provide users detailed information as a context for understanding what the information in the financial statements, note disclosures and the supporting schedules say about the government’s overall financial health. The section is divided into five categories based on the following: FINANCIAL TRENDS These schedules contain trend information to help the reader understand how the government’s financial performance and well‐being have changed over time. REVENUE CAPACITY These schedules present information to help the reader assess the government’s most significant local revenue source – property tax. DEBT CAPACITY These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. DEMOGRAPHIC AND ECONOMIC INFORMATION These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. OPERATING INFORMATION These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-1 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Governmental activities Net investment in capital assets 457,337,430$ 467,609,532$ 453,278,699$ 466,996,814$ 473,667,290$ 478,173,369$ 488,387,204$ 494,021,497$ 509,894,057$ 536,120,344$ Restricted 18,973,294 26,987,147 18,939,968 31,304,501 36,805,133 61,745,083 63,265,226 110,965,722 91,947,460 86,174,613 Unrestricted 57,074,155 50,203,343 61,174,111 77,331,398 67,657,377 74,778,751 83,352,782 90,952,218 176,396,121 221,562,074 Total governmental activities net position 453,318,266$ 544,800,022$ 533,392,778$ 575,632,713$ 578,129,800$ 614,697,203$ 635,005,212$ 695,939,437$ 778,237,638$ 843,857,031$ Business-type activities Net investment in capital assets 255,631,135$ 271,016,825$ 279,506,339$ 281,531,560$ 285,507,078$ 293,076,667$ 289,121,692$ 301,540,670$ 304,930,019$ 313,952,567$ Restricted 2,909,578 2,909,578 2,909,578 2,810,145 2,810,145 2,810,145 2,810,145 9,780,922 5,638,678 5,633,456 Unrestricted 41,941,669 51,330,478 63,236,920 72,699,879 84,471,108 90,300,915 105,198,350 106,067,790 124,184,942 136,743,258 Total business-type activities net position 240,444,632$ 325,256,881$ 345,652,837$ 357,041,584$ 372,788,331$ 386,187,727$ 397,130,187$ 417,389,382$ 434,753,639$ 456,329,281$ Primary government Net investment in capital assets 712,968,565$ 738,626,357$ 732,785,038$ 748,528,374$ 759,174,368$ 771,250,036$ 777,508,896$ 795,562,167$ 814,824,076$ 850,072,911$ Restricted 21,882,872 29,896,725 21,849,546 34,114,646 39,615,278 64,555,228 66,075,371 120,746,644 97,586,138 91,808,069 Unrestricted 99,015,824 101,533,821 124,411,031 150,031,277 152,128,485 165,079,666 188,551,132 197,020,008 300,581,063 358,305,332 Total primary government net position 693,762,898$ 870,056,903$ 879,045,615$ 932,674,297$ 950,918,131$ 1,000,884,930$ 1,032,135,399$ 1,113,328,819$ 1,212,991,277$ 1,300,186,312$ Source : City of Renton Finance Division (accrual basis of accounting) LAST TEN FISCAL YEARS NET POSITION BY COMPONENT TABLE 1 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-2 EXPENSES 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Government activities: General government 10,928,669$ 9,829,338$ 10,230,923$ 11,619,780$ 11,693,087$ 13,188,036$ 21,069,221$ 5,939,406$ 10,586,624$ 18,831,400$ Judicial 2,406,797 2,342,557 2,501,487 2,631,350 2,612,931 3,036,172 3,170,019 3,058,866 3,828,832 3,924,144 Public safety 55,143,750 57,863,131 49,272,668 34,970,381 35,406,820 34,493,076 39,807,638 34,996,342 45,403,831 45,821,151 Utilities 746,363 694,469 691,798 686,356 675,076 270,397 206,150 4,164 34,598 43,193 Transportation 14,641,476 15,918,953 19,560,699 18,369,818 18,828,845 20,091,069 18,145,346 17,561,416 22,026,500 20,222,129 Economic and natural environment 6,584,984 7,362,822 7,578,069 8,280,445 7,514,571 8,032,974 9,488,896 8,714,594 13,737,667 13,681,351 Health and human services 1,885,761 1,925,253 2,098,190 2,210,690 2,260,902 2,486,008 2,910,797 2,527,615 3,130,494 3,578,875 Culture and recreation 12,338,932 13,636,384 12,999,863 14,307,593 13,802,266 15,040,743 13,421,450 12,483,452 16,314,321 14,510,956 Interest on long-term debt 2,932,298 1,247,934 948,685 1,146,722 1,077,950 1,562,735 1,489,077 1,213,697 979,918 910,047 Total governmental activities expenses 107,609,030 110,820,841 105,882,382 94,223,135 93,872,448 98,201,210 109,708,594 86,499,552 116,042,785 121,523,246 Business-type activities: Airport 2,771,616 4,319,084 2,974,582 3,178,004 2,713,567 3,270,117 2,736,107 3,588,050 3,354,236 3,263,367 Golf course 2,298,804 2,200,740 2,173,590 2,386,006 2,277,544 2,442,180 2,341,478 2,363,279 2,817,014 3,096,659 Solid Waste 17,157,550 16,907,652 16,850,054 19,367,124 19,648,560 20,544,997 20,132,851 20,487,512 22,464,173 24,946,989 Waterworks Utility 43,274,617 45,184,377 53,960,170 51,849,388 50,408,232 54,263,991 50,782,704 50,204,545 54,532,445 55,957,729 Total Business-type activities expenses 65,502,587 68,611,853 75,958,396 76,780,522 75,047,903 80,521,285 75,993,140 76,643,386 83,167,868 87,264,744 Total Primary Government expenses 172,913,375 179,432,694 181,840,778 171,003,657 168,920,351 178,722,495 185,701,734 163,142,938 199,210,653 208,787,990 PROGRAM REVENUESGovernmental activities:Charges for services: General government 4,336,464 4,354,150 5,028,744 7,954,848 7,172,729 7,400,036 5,553,209 4,154,041 8,991,134 2,953,151 Judicial 3,059,061 3,476,485 3,077,775 3,318,723 5,480,833 5,237,160 3,825,074 5,033,166 5,143,140 3,956,736 Public safety 6,961,962 7,677,351 4,836,073 1,478,987 1,561,148 1,529,648 1,237,536 1,252,495 1,998,877 1,415,913 Utilities 278,568 668 1,436 - - - - - - - Transportation 3,140,008 3,823,320 2,638,216 2,218,114 3,568,302 2,383,972 2,186,138 2,310,775 8,665,990 1,179,678 Economic and natural environment 3,791,108 5,641,135 4,992,629 4,814,488 4,747,410 5,253,540 4,244,701 5,029,960 7,938,297 7,169,265 Health and human services - - - - - 123,391 42,348 104,410 98,567 465,062 Culture and recreation 2,676,783 2,331,046 2,260,812 2,347,627 2,176,752 2,678,765 1,094,457 1,467,001 3,567,700 3,133,145 Operating grants and contributions 6,422,816 6,614,030 8,226,834 5,984,222 6,921,332 7,458,503 10,990,611 8,879,286 19,180,209 7,301,395 Capital grants and contributions 11,640,501 8,658,075 10,913,636 10,167,007 5,700,805 7,615,827 10,743,119 13,544,611 23,817,637 19,491,497 Total governmental activities program revenues 42,307,271 42,576,260 41,976,155 38,284,016 37,329,311 39,680,842 39,917,193 41,775,745 79,401,551 47,065,842 Business-type activities: Charges for services: Airport 2,652,808 2,614,311 2,718,441 2,820,574 3,503,323 3,177,298 2,906,657 3,295,371 4,093,908 4,800,061 Golf course 2,127,512 2,302,635 2,196,062 2,166,680 2,329,889 2,397,796 2,605,574 3,068,337 3,172,477 3,526,548 Solid waste utility 17,310,807 17,146,266 17,152,279 17,787,705 19,656,483 21,817,526 20,687,309 21,018,006 22,612,788 24,780,614 Waterworks Utility 51,354,475 53,263,702 53,685,591 56,202,702 57,067,220 56,546,499 56,189,141 59,533,068 61,949,291 65,052,834 Total Business-type charges 73,445,602 75,326,914 75,752,373 78,977,661 82,556,915 83,939,119 82,388,681 86,914,782 91,828,464 98,160,057 Operating grants and contributions 1,108,920 704,367 8,400,008 1,213,388 572,719 1,099,731 1,233,103 972,220 846,147 386,362 Capital grants and contributions 12,531,671 23,291,274 12,559,755 7,664,875 6,285,279 7,341,238 3,940,585 5,458,679 6,940,356 5,187,720 Total business-type activities program revenues 87,086,193 99,322,555 96,712,136 87,855,924 89,414,913 92,380,088 87,562,369 93,345,681 99,614,967 103,734,139 Total primary government program revenues 129,393,464$ 141,898,815$ 138,688,291$ 126,139,940$ 126,744,224$ 132,060,930$ 127,479,562$ 135,121,426$ 179,016,518$ 150,799,981$ Net (expense)/revenue Governmental activities (65,301,759)$ (68,244,581)$ (63,906,227)$ (55,939,119)$ (56,543,137)$ (58,520,368)$ (69,791,401)$ (44,723,807)$ (36,641,234)$ (74,457,404)$ Business-type activities 21,583,606 30,710,702 20,753,740 11,075,402 14,367,010 11,858,803 11,569,229 16,702,295 16,447,099 16,469,395 Total primary government net expense (43,718,153)$ (37,533,879)$ (43,152,487)$ (44,863,717)$ (42,176,127)$ (46,661,565)$ (58,222,172)$ (28,021,512)$ (20,194,135)$ (57,988,009)$ TABLE 2 CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) Page 1 of 2 Fiscal Year 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-3 GENERAL REVENUES AND OTHER CHANGES 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Governmental activities: Taxes Property taxes 35,112,669$ 35,418,323$ 37,105,988$ 24,669,058$ 19,046,123$ 21,706,506$ 21,964,194$ 22,574,225$ 23,250,415$ 25,201,735$ Timber taxes - - - - - - - - - - Retail sales taxes 27,223,521 29,567,506 32,933,987 33,381,395 33,564,285 32,955,528 31,034,947 42,329,250 47,758,735 48,173,923 Business taxes 18,575,350 20,561,270 26,376,964 30,135,189 30,055,917 30,151,752 26,378,666 31,920,356 35,817,234 43,807,894 Excise taxes 4,595,540 5,736,582 6,123,700 7,193,498 7,951,859 6,485,943 6,723,181 10,994,027 9,697,601 7,066,074 Penalties and interest - - - - - - - - - - Investment earnings 1,137,752 1,303,414 1,441,471 1,587,589 2,374,510 3,011,779 2,702,607 145,963 166,544 10,426,625 Miscellaneous 760,292 580,042 1,746,009 689,371 938,045 663,782 747,850 1,095,098 2,590,478 4,571,462 Gain on sale of capital assets1 - 17,109 13,710 992,114 914,008 43,698 11,256 69,946 223,677 248,692 Transfers 449,362 131,491 173,917 218,212 (256,835) 68,783 6,339 (33,766) (565,249) 580,392 Special Items Transfer of fire operations (32,665,407) - - - (866,131) - - - Transfer of library assets (18,527,290) - - - - - - - Total governmental activities 87,656,244 93,315,737 54,723,049 98,866,426 94,587,912 95,087,771 88,702,909 109,095,099 118,939,435 140,076,797 Business-type activities: Investment earnings 96,625 225,515 332,931 483,356 1,105,019 1,365,411 1,197,741 70,210 (54,167) 5,393,560 Miscellaneous 30,863 38,014 18,051 48,201 17,883 243,965 208,145 8,325 306,920 293,079 Gain on sale of capital assets1 93,773 - - - - - - 7,532 99,156 - Transfers (449,362) (131,491) (173,917) (218,212) 256,835 (68,783) (6,339) 33,766 565,249 (580,392) Total business-type activities (228,101) (569,680) 177,065 313,345 1,379,737 1,540,593 1,399,547 119,833 917,158 5,106,247 Total primary government 87,428,143$ 92,746,057$ 54,900,114$ 99,179,771$ 95,967,649$ 96,628,364$ 90,102,456$ 109,214,932$ 119,856,593$ 145,183,044$ CHANGES IN NET POSITION Governmental activities 22,552,727$ 25,071,156$ (9,183,178)$ 42,927,307$ 38,044,775$ 36,567,403$ 18,911,508$ 64,371,292$ 82,298,201$ 65,619,393$ Business-type activities 21,355,505 30,842,740 20,930,805 11,388,747 15,746,747 13,399,396 12,968,776 16,822,128 17,364,257 21,575,642 Total primary government 43,908,232$ 55,913,896$ 11,747,627$ 54,316,054$ 53,791,522$ 49,966,799$ 31,880,284$ 81,193,420$ 99,662,458$ 87,195,035$ Source : City of Renton Finance Division 1 Prior to 2014 Gain (loss) on sale of capital assets were previously reported as "Miscellaneous". 2In 2013 certain amounts previously reported as "interfund revenue" are now reported as "transfers" TABLE 2 CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) Page 2 of 2 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-4 TABLE 3 FUND BALANCE OF GOVERNMENT FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General fund Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved - - - - - - - - - - Nonspendable - - 200,000 - - - - - - - Restricted 250,717 156,105 974,770 1,341,610 1,428,578 1,607,617 754,367 965,896 985,615 1,655,626 Committed - 1,185,085 - - - - 2,565,246 2,571,321 2,586,790 2,608,882 Assigned 286,516 260,342 236,772 8,853,636 9,545,607 7,829,990 7,654,675 8,298,032 6,326,408 5,547,992 Unassigned 19,517,236 20,183,002 28,579,805 29,077,267 41,085,590 45,660,733 52,721,934 63,150,333 83,433,006 100,270,628 Total general fund 20,054,469$ 21,784,534$ 29,991,347$ 39,272,513$ 52,059,775$ 55,098,340$ 63,696,222$ 74,985,582$ 93,331,819$ 110,083,128$ All other governmental funds Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved, reported in: Special revenue funds - - - - - - - - - Debt service funds - - - - - - - - - Capital project funds - - - - - - - - - Nonspendable - - 64,783 - - - - - - - Restricted 18,722,577 7,841,326 7,528,348 13,049,222 14,852,808 37,576,471 41,375,547 47,213,081 53,024,884 44,158,168 Committed - 15,844,472 20,134,020 11,763,443 17,125,460 18,352,497 14,169,890 15,070,663 19,958,471 19,027,078 Assigned 12,594,651 3,290,869 6,150,838 18,261,594 13,963,776 15,519,639 13,350,561 12,488,653 4,947,675 11,254,825 Unassigned - - - - - - (2,819,660) (337,394) (1,272,748) (4) Total all other governmental funds 31,317,228$ 26,976,667$ 33,877,989$ 43,074,259$ 45,942,044$ 71,448,607$ 66,076,338$ 74,435,003$ 76,658,282$ 74,440,067$ Source : City of Renton Finance Division $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 2014 2015 2016 2017 2018 2019 2020 2021 2023 General fund All other governmental funds 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-5 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 REVENUES Taxes 85,244,091$ 91,417,887$ 102,741,519$ 95,576,042$ 90,772,400$ 91,299,359$ 85,938,021$ 107,711,878$ 116,440,506$ 124,165,028$ Licenses and permits 7,724,038 8,541,090 7,504,210 6,462,056 5,892,914 5,836,382 5,242,692 5,337,493 7,515,343 6,700,827 Intergovernmental 13,717,109 10,546,797 14,058,888 10,944,312 9,662,231 8,464,679 16,346,001 21,430,899 29,239,300 19,498,904 Charges for services 11,030,501 13,337,291 9,077,603 6,863,066 8,036,603 7,912,645 6,876,265 7,440,638 21,123,819 7,183,937 Fines and forfeits 2,708,477 3,049,542 3,131,466 2,978,800 4,330,947 4,748,321 3,330,877 4,695,505 4,073,851 3,791,985 Interfund revenues 1 264,539 296,649 - - - - - - - - Contributions 947,927 187,616 792,699 551,968 598,662 238,587 734,104 359,874 6,392,804 7,478,437 Investment Earnings 1,039,626 1,108,572 1,214,516 1,330,442 1,752,835 2,266,107 2,078,608 121,964 253,203 7,354,855 Miscellaneous Revenues 2,117,198 1,994,532 3,036,059 2,280,640 2,375,518 2,079,530 962,008 1,291,860 1,746,195 2,398,843 Total revenues 115,930,833 130,479,976 141,556,960 126,987,326 123,422,110 122,845,610 121,508,576 148,390,111 186,785,021 178,572,816 EXPENDITURES Current General government 10,142,332 11,334,485 11,961,260 12,492,727 12,267,911 12,423,213 13,757,930 13,880,312 20,334,915 16,181,175 Judicial 2,400,097 2,461,668 2,536,835 2,650,678 2,727,689 3,162,916 3,252,116 3,485,237 3,982,793 4,179,892 Public safety 55,174,723 58,211,446 47,619,491 36,063,481 39,768,443 42,841,721 41,176,222 42,469,142 46,558,177 50,534,087 Utilities 252,826 236,245 238,057 240,611 244,244 244,452 209,398 - - - Transportation 10,092,425 10,898,934 13,631,324 12,567,755 12,947,686 10,634,812 10,304,108 11,233,863 13,735,344 13,540,613 Economic environment 6,088,295 6,628,136 7,130,650 7,730,872 7,674,325 8,094,074 9,447,716 9,817,448 13,918,760 13,812,836 Health and human services 1,840,312 1,876,841 2,068,295 2,175,116 2,371,428 2,515,683 3,006,025 2,697,473 3,200,359 3,709,857 Culture and recreation 10,942,620 12,250,743 11,786,172 13,080,103 12,897,526 13,608,275 11,559,839 11,684,510 14,102,614 16,764,933 Capital outlay 16,829,123 20,274,185 12,637,649 11,895,890 11,362,136 16,171,373 18,794,283 20,961,587 39,457,703 34,666,772 Debt service Principal payments 5,076,530 4,834,225 4,530,216 4,672,672 4,480,075 5,167,947 5,405,922 5,625,158 3,069,547 4,453,188 Interest and fiscal charges 3,324,433 1,660,586 1,570,322 1,390,904 1,216,109 1,646,927 1,756,060 1,528,007 1,271,720 1,110,801 Total expenditures 116,968,848 130,667,494 115,710,271 104,960,809 107,957,572 116,511,393 118,669,619 123,382,737 159,631,932 158,954,154 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,038,015) (187,518) 25,846,689 22,026,517 15,464,538 6,334,217 2,838,957 25,007,374 27,153,089 19,618,662 OTHER FINANCING SOURCES (USES) Transfers in 5,175,933 9,326,629 10,252,886 9,891,918 2,440,000 18,898,175 18,523,881 18,491,316 36,283,489 27,952,337 Transfer (out)(8,463,285) (10,786,043) (8,480,721) (14,374,763) (3,931,548) (20,157,065) (18,557,424) (20,471,335) (43,435,673) (33,309,739) Refunding bonds issued - 12,520,000 - - - - - - - - GO Bonds issued - - - - - 20,845,000 - - - - Premium on general obligation debt - 1,171,804 - - - 2,593,852 - - - - Sale of capital assets 5,170 - - 916,547 1,662,460 20,000 7,050 42,585 232,300 248,692 Payment to refunded bond escrow agent - (13,573,341) - - - - - - - - Insurance Recoveries 14,666 14,724 29,061 17,217 19,597 10,949 27,218 15,152 262,113 23,142 Lease financing 2 - - - - - - - - 74,198 - Total other financing sources (uses) 3 (3,267,516) (1,326,227) 1,801,226 (3,549,081) 190,509 22,210,911 725 (1,922,282) (6,583,573) (5,085,568) SPECIAL ITEMS Transfer of fire operations - - (12,300,367) - - - (866,131) - - - Total special items - - (12,300,367) - - - (866,131) - - - Net change in fund balance 17,163,147$ (1,513,745)$ 15,347,548$ 18,477,436$ 15,655,047$ 28,545,128$ 1,973,551$ 23,085,092$ 20,569,516$ 14,533,094$ Debt service as a percentage of non capital expenditures 7.98%5.88%5.92%6.52%5.90%6.38%7.00%6.77%3.54%4.50% Source : City of Renton Finance Division TABLE 4 CHANGES IN FUND BALANCES OF GOVERNMENT FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) 2 In accordance with Governmental Accounting Standards Board (GASB) 87 and effective in 2022, the city started recording lease activity. 1 2011-2012 Interfund revenues include amounts received for indirect costs allocated to departments. Beginning in 2013 these amounts are recorded as a reduction of the expenses, rather than revenue, in accordance with Generally Accepted Accounting Principles. Tables prior to 2010 used the titles "Security of persons and property" and "Mental and physical health" for functions now being referred to as "Public Safety" and "Health and Human Services", respectively. Tables Prior to 2013 used the title "Physical environment" for functions now being referred to as "Utilities". 3 Corrected the "Total other financing sources" total from 18,201,162 to (3,267,516) to reflect the correct total for that column of data. 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-6 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 City Population 97,130 98,470 101,300 102,700 104,100 104,700 105,500 108,054 107,500 107,900 Water System Rate Increase 5.0%0.0%0.0%0.0%0.0%0.0%2.0%2.0%2.0%0.0% Billing Single Family 6,339,653$ 6,526,128$ 6,386,047$ 6,558,914$ 6,567,867$ 6,472,448$ 6,885,014$ 7,163,602$ 7,113,462$ 7,236,872$ Multi-Family, Commercial, Industrial 6,977,452 6,823,857 7,072,435 7,297,389 7,277,957 7,084,008 6,865,880 7,191,211 7,533,258 7,672,940 Irrigation 2,245,010 2,537,017 2,357,006 2,425,206 2,745,461 2,319,170 2,249,841 2,687,875 2,524,164 2,919,100 Fire Service 311,936 315,931 322,539 333,951 337,687 340,641 355,375 370,773 376,615 366,019 Other2 488,502 607,944 506,044 489,559 455,627 511,488 408,575 606,183 639,408 710,718 Total Water Billing 16,362,553 16,810,877 16,644,071 17,105,020 17,384,599 16,727,755 16,764,684 18,019,645 18,186,908 18,905,649 Wastewater System Rate Increase 5.0%0.0%0.0%4.0%4.0%0.0%2.0%2.0%2.0%3.0% Billing Single Family 5,069,164$ 5,173,757$ 5,262,490$ 5,551,146$ 5,820,715$ 5,875,324$ 6,046,959$ 6,226,946$ 6,377,148$ 6,589,303$ Multi-Family, Commercial, Industrial, Other 4,560,119 4,217,237 4,467,264 4,627,298 4,794,217 4,733,681 4,521,708 4,759,423 5,080,536 5,283,578 Total City Wastewater Billing 9,629,283 9,390,994 9,729,754 10,178,444 10,614,932 10,609,005 10,568,667 10,986,370 11,457,683 11,872,881 King County Metro Charges 15,440,140 15,556,018 16,156,367 16,865,542 16,895,073 17,314,045 16,848,625 17,980,785 19,188,469 20,479,790 Total All 25,069,423 24,947,012 25,886,121 27,043,986 27,510,005 27,923,050 27,417,292 28,967,154 30,646,152 32,352,671 Storm Water System Rate Increase 5.0%4.0%4.0%4.0%4.0%0.0%2.0%2.0%2.0%4.0% Billing Single Family 3,332,758$ 3,498,882$ 3,671,923$ 3,848,958$ 4,022,009$ 4,043,489$ 4,144,288$ 4,253,903$ 4,349,905$ 4,534,637$ Multi-Family, Commercial, Industrial, Other 5,742,495 6,012,017 6,235,149 6,690,859 6,906,349 6,932,067 7,046,139 7,193,548 7,357,424 7,655,622 Total Storm Water Billing 9,075,253 9,510,899 9,907,072 10,539,817 10,928,358 10,975,556 11,190,426 11,447,451 11,707,329 12,190,258 1 Data for prior years provided where available. 2 Includes wholesale water provided to the Skyway Water and Sewer District through a single metered connection. LAST TEN FISCAL YEARS 1 WATER UTILITY SYSTEMS REVENUE INFORMATION TABLE 5 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-7 TABLE 6 PRINCIPAL RATEPAYERS Page 1 of 3 WATER 2023 2014 % of Total % of Total Ratepayer Revenue Rank Revenue Revenue Rank Revenue King County 571,067$ 1 3.02%356,323$ 3 2.18% City of Renton 485,163 2 2.57%434,827 2 2.66% Skyway Water and Sewer District 325,391 3 1.72%129,079 7 0.79% Boeing Commercial 240,942 4 1.27%506,968 1 3.10% Renton School District 214,066 5 1.13%170,103 4 1.04% Unico Longares North Building LLC 193,948 6 1.03%- 0.00% Copper Ridge Renton LLC 170,007 7 0.90%- 0.00% Public Hosp Dist #1 of KC 167,832 8 0.89%151,100 5 0.92% Renton Housing Authority 152,771 9 0.81%- 0.00% CPT The Landing LLC 152,090 10 0.80%121,043 0.74% Ashburn Condominiums - 0.00%132,842 6 0.81% Axis Grand Apartments - 0.00%117,255 9 0.72% Ergis IX Reo LLC - 0.00%- 0.00% G and K Services - 0.00%113,985 10 0.70% All Other 9,141,564 48.36%7,962,298 48.66% Single Family 7,088,122 37.49%6,166,824 37.69% Misc 2,327 0.01%- 0.00% Total Revenue 18,905,291$ 100.00%16,362,646$ 100.00% Source : City of Renton Finance Division 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-8 TABLE 6 PRINCIPAL RATEPAYERS Page 2 of 3 SURFACE WATER 2023 2014 % of Total % of Total Ratepayer Revenue Rank Revenue Revenue Rank Revenue City of Renton 1,358,490$ 1 11.14%958,456$ 1 10.56% Boeing Commercial 334,732 2 2.75%337,371 2 3.72% King County 311,380 3 2.55%195,840 4 2.16% Renton School District 306,244 4 2.51%229,726 3 2.53% WSDOT 136,412 5 1.12%78,984 5 0.87% Kennworth Truck Company 92,960 6 0.76%71,993 6 0.79% Stoneway Rock and Recycling 74,812 7 0.61%57,936 7 0.64% Unico Longares North Building LLC 73,420 8 0.60%- 0.00% Leisure Estates Office 72,607 9 0.60%56,226 8 0.62% The Kroger Co 57,617 10 0.47%44,620 10 0.49% CPT The Landing LLC - 0.00%54,899 9 0.61% Service Linen Supply Inc - 0.00%- 0.00% City of Renton - 0.00%- 0.00% The Arbors at Sunset - 0.00%- 0.00% Ergis IX Reo LLC - 0.00%- 0.00% Axis Grand Apartments - 0.00%- 0.00% G and K Services - 0.00%- 0.00% Renton School District - 0.00%- 0.00% All Other 4,896,340 40.17%3,724,054 41.04% Single Family 4,464,123 36.62%3,265,149 35.98% Misc 11,122 0.09%- 0.00% Total Revenue 12,190,258$ 100.00%9,075,253$ 100.00% Source : City of Renton Finance Division 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-9 TABLE 6 PRINCIPAL RATEPAYERS Page 3 of 3 WASTEWATER 2023 2014 % of Total % of Total Ratepayer Revenue Rank Revenue Revenue Rank Revenue Boeing Commercial 187,957$ 1 1.58%448,266$ 1 4.66% Public Hosp Dist #1 of KC 148,954 2 1.26%106,160 2 1.10% Copper Ridge Renton LLC 127,135 3 1.07%- 0.00% Renton Preservation LP 95,058 4 0.80%- 0.00% Renton Housing Authority 80,889 5 0.68%- 0.00% CPT The Landing LLC 79,532 6 0.67%- 0.00% 1202 North 10th LLC 69,160 7 0.58%- 0.00% TLus Rise Renton LP 68,831 8 0.58%- 0.00% Service Linen Supply Inc 65,019 9 0.55%71,123 5 0.74% 1205 North 10th LLC 64,459 10 0.54%- 0.00% City of Renton - 0.00%74,334 4 0.77% WA3 Properties Talbot LLC - 0.00%- 0.00% Maplewood LLC - 0.00%57,087 7 0.59% Axis Grand Apartments - 0.00%70,401 6 0.73% The Arbors at Sunset - 0.00%55,994 8 0.58% Egris IX Reo LLC - 0.00%- 0.00% Sunset View Owner LLC - 0.00%49,572 10 0.52% Royal Hills Preservation LP - 0.00%55,544 9 0.58% G and K Services - 0.00%86,345 3 0.90% All Other 4,402,720 37.08%3,602,723 37.41% Single Family 6,471,617 54.51%4,951,735 51.42% Misc 11,538 0.10%- 0.00% Total Revenue 11,872,870$ 100.00%9,629,283$ 100.00% Source : City of Renton Finance Division 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-10 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Water Rates Monthly Rates Basic Charge 3/4"17.60 17.60 17.60 17.60 17.60 17.60 17.95 18.31 18.68 18.68 1"34.89 34.89 34.89 34.89 34.89 34.89 35.59 36.30 37.03 37.03 1 1/2"67.33 67.33 67.33 67.33 67.33 67.33 68.68 70.05 71.45 71.45 2"105.52 105.52 105.52 105.52 105.52 105.52 107.63 109.78 111.98 111.98 3"216.81 216.81 216.81 216.81 216.81 216.81 221.15 225.57 230.08 230.08 4"330.75 330.75 330.75 330.75 330.75 330.75 337.37 344.12 351.00 351.00 6"645.28 645.28 645.28 645.28 645.28 645.28 658.19 671.35 684.78 684.78 8"1,262.94 1,262.94 1,262.94 1,262.94 1,262.94 1,262.94 1,288.20 1,313.96 1,340.24 1,340.24 10"1,882.63 1,882.63 1,882.63 1,882.63 1,882.63 1,882.63 1,920.28 1,958.69 1,997.86 1,997.86 12"2,739.86 2,739.86 2,739.86 2,739.86 2,739.86 2,739.86 2,794.66 2,850.55 2,907.56 2,907.56 Charge for Irrigation2 3/4"10.58 10.58 10.58 10.58 10.58 10.58 10.79 11.01 11.23 11.23 1"18.92 18.92 18.92 18.92 18.92 18.92 19.30 19.69 20.08 20.08 1 1/2"32.29 32.29 32.29 32.29 32.29 32.29 32.94 33.60 34.27 34.27 2"49.46 49.46 49.46 49.46 49.46 49.46 50.45 51.46 52.49 52.49 3"104.57 104.57 104.57 104.57 104.57 104.57 106.66 108.79 110.97 110.97 4"155.65 155.65 155.65 155.65 155.65 155.65 158.76 161.94 165.17 165.17 6"294.81 294.81 294.81 294.81 294.81 294.81 300.71 306.72 312.86 312.86 8"645.13 645.13 645.13 645.13 645.13 645.13 658.03 671.19 684.61 684.61 10"829.55 829.55 829.55 829.55 829.55 829.55 846.14 863.06 880.32 880.32 12"1,197.90 1,197.90 1,197.90 1,197.90 1,197.90 1,197.90 1,221.86 1,246.30 1,271.22 1,271.22 1 Data for prior years provided where available. Page 1 of 3 LAST 10 FISCAL YEARS 1 WATER UTILITY RATES TABLE 7 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-11 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Water Rates, continued Monthly Rates Fire Meter per meter inch 1"6.27 6.27 6.27 6.27 6.27 6.27 6.40 6.53 6.66 6.66 1 1/2"7.01 7.01 7.01 7.01 7.01 7.01 7.15 7.29 7.44 7.44 2"9.01 9.01 9.01 9.01 9.01 9.01 9.19 9.37 9.56 9.56 3"23.79 23.79 23.79 23.79 23.79 23.79 24.27 24.76 25.25 25.25 4"29.27 29.27 29.27 29.27 29.27 29.27 29.86 30.46 31.07 31.07 6"42.06 42.06 42.06 42.06 42.06 42.06 42.90 43.76 44.63 44.63 8"56.65 56.65 56.65 56.65 56.65 56.65 57.78 58.94 60.11 60.11 10"73.08 73.08 73.08 73.08 73.08 73.08 74.54 76.03 77.55 77.55 12"N/A N/A N/A 87.68 87.68 87.68 89.43 91.22 93.04 93.04 Useage Rates rate/100 cf (100cf = 748 gallons) Single Family: < 500 cf/mo 2.54 2.54 2.54 2.54 2.54 2.54 2.59 2.64 2.69 2.69 500-1,000 cf/mo 3.41 3.41 3.41 3.41 3.41 3.41 3.48 3.55 3.62 3.62 < 1,000 cf/mo > 1,000 cf/mo 4.30 4.30 4.30 4.30 4.30 4.30 4.39 4.48 4.57 4.57 All Other Users Multi-family 3.29 3.29 3.29 3.29 3.29 3.29 3.36 3.43 3.50 3.50 Non-residential 3.48 3.48 3.48 3.48 3.48 3.48 3.55 3.62 3.69 3.69 Private irrigation 5.58 5.58 5.58 5.58 5.58 5.58 5.69 5.80 5.92 5.92 City irrigation 3.92 3.92 3.92 3.92 3.92 3.92 4.00 4.08 4.16 4.16 Hydrant Meter N/A N/A N/A 5.58 5.58 5.58 5.69 5.80 5.92 5.92 1 Data for prior years provided where available. TABLE 7 WATER UTILITY RATES LAST 10 FISCAL YEARS 1 Page 2 of 3 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-12 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Surface Water Rates Monthly rates Single-family 12.69 13.20 13.73 14.28 14.85 14.85 15.15 15.45 15.76 16.39 Commercial Minimums <= .5 acre Monthly rate Low Intensity 31.42 32.68 33.99 35.35 36.76 36.76 37.50 38.25 39.02 40.58 Medium Intensity 45.46 47.28 49.17 51.14 53.18 53.18 54.24 56.43 56.43 58.69 High Intensity 58.61 60.95 63.39 65.93 68.56 68.56 69.93 71.33 72.76 75.67 > .5 acre Rate per acre Low Intensity 62.86 65.37 67.98 70.70 73.53 73.53 75.00 76.50 78.03 81.15 Medium Intensity 90.87 94.50 98.28 102.21 106.30 106.30 108.43 110.60 112.81 117.32 High Intensity 117.21 121.90 126.78 131.85 137.13 137.13 139.87 142.67 145.52 151.34 Wastewater Rates Monthly Rates Single-family Renton 27.65 27.65 27.65 28.76 29.91 29.91 30.51 31.12 31.74 32.69 King County 40.95 42.61 42.61 44.22 44.22 45.33 45.33 47.37 49.27 52.11 Other Users Renton Base charge3 4.25 4.25 4.25 4.42 4.60 4.60 4.69 4.78 0.00 0.00 Minimum Charge (include 750 cf)2 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 31.74 32.69 Per 100 cf 3.12 3.12 3.12 3.24 3.37 3.37 3.44 3.51 3.58 3.69 King County Minimum Charge (includes 750 cf)4 40.95 42.61 42.61 44.22 44.22 45.33 45.33 47.37 49.27 52.11 Per 100 cf4 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6.57 6.95 1 Data for prior years provided where available. 2 Correction - Updated the 2021 fiscal year 1" and 1 1/2" water charge for irrigation rates from $6.53 to $19.69 and from $7.29 to $33.60, respecfully. 3 Effective in 2022, started listing the minimum charge and the base rate is no longer used. 4 Effective in 2022, (1) changed title from "Per 750 cf" to "Minimum Charge (includes 750 cf)" which beter represents that data and (2) started charging a per 100 cf rate TABLE 7 WATER UTILITY RATES LAST 10 FISCAL YEARS 1 Page 3 of 3 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-13 TABLE 8 GENERAL GOVERNMENT TAX REVENUE BY SOURCE LAST TEN FISCAL YEARS (accrual basis of accounting) FISCAL YEAR PROPERTY TAX SALES TAX BUSINESS TAXES EXCISE TAX TOTAL TAX 2014 35,112,669 27,223,521 18,575,350 4,595,540 85,507,080 2015 35,418,323 29,567,506 20,561,270 5,736,582 91,283,681 2016 37,105,988 32,933,987 26,376,964 6,123,700 102,540,639 2017 24,669,058 33,381,395 30,135,189 7,193,498 95,379,140 2018 19,046,123 33,564,285 30,055,917 7,951,859 90,618,184 2019 21,706,506 32,955,528 30,151,752 6,485,943 91,299,729 2020 21,964,194 31,034,947 26,378,666 6,723,181 86,100,988 2021 22,574,225 42,329,250 31,920,356 10,994,027 107,817,858 2022 23,250,415 47,758,735 35,817,234 9,697,601 116,523,985 2023 25,201,735 48,173,923 43,807,894 7,066,074 124,249,626 Source : City of Renton Finance Division $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Property Tax Sales Tax Business Tax Excise Tax 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-14 TABLE 9 PRINCIPAL PROPERTY TAX PAYERS 2023 2014 % OF TOTAL % OF TOTAL TAXABLE1 TAXABLE TAXABLE1 TAXABLE ASSESSED ASSESSED ASSESSED ASSESSED TAXPAYER VALUE RANK VALUE VALUE RANK VALUE Boeing 572,176,158$ 1 1.99%850,186,010$ 1 7.50% Southport LLC 218,805,000 2 0.76%0.00% Unico Longacres North Build 192,824,000 3 0.67%0.00% Paccar 192,152,710 4 0.67%109,618,533 4 0.97% 1202 North 10th LLC 188,806,000 5 0.66%0.00% 1205 North 10th LLC 185,065,000 6 0.64%0.00% CPT The Landing LLC 161,996,500 7 0.56%0.00% Kaiser Foundation Health PL 131,901,024 8 0.46%0.00% TLUS Rise Renton LP 119,664,100 9 0.42%0.00% Oakesdale Business Park LLC 118,017,200 10 0.41%0.00% Marvin F Poer and Company - 0.00%0.00% Puget Sound Energy-Elec/Gas - 0.00%136,271,765 3 1.20% Transwestern Harvest Lakeshore - 0.00%143,105,600 2 1.26% Renton Properties LLC - 0.00%52,885,800 5 0.47% Fred Meyer Stores Inc - 0.00%43,348,000 7 0.38% BRE-FMCA LLC c/o Bre Properties - 0.00%35,000,000 10 0.31% ECI Two WTC LLC - 0.00%36,717,600 8 0.32% Axis Grand Holdings - 0.00%47,080,400 6 0.42% FP-FAA Seattle LLC - 0.00%35,028,800 9 0.31% All Others 26,687,484,720 92.77%9,843,084,405 86.86% Total Assessed Valuation 28,768,892,412$ 100.00%11,332,326,913$ 100.00% 1Source: King County Department of Assessments 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-15 FISCAL YEAR COMMERCIAL PROPERTY INDUSTRIAL PROPERTY RESIDENTIAL PROPERTY LESS: EXEMPT REAL PROPERTY4 PERSONAL PROPERTY3 ADJUSTMENTS TO BASE2 TOTAL TAXABLE ASSESSED VALUE3 DIRECT TAX RATE3 2014 2,433,225,730 1,267,488,700 7,926,464,800 539,444,058 949,284,799 (704,693,058) 11,332,326,913 3.152 2015 2,509,928,450 1,147,653,230 8,794,605,250 592,768,450 923,325,641 154,013,498 12,936,757,619 2.833 2016 2,681,711,050 1,271,788,530 9,078,657,800 645,210,723 935,849,150 489,977,352 13,812,773,159 2.710 2017 3,051,049,072 1,340,511,480 10,672,639,000 648,346,872 1,032,050,717 (341,864,438) 15,106,038,959 1.610 2018 4,000,946,859 1,460,628,600 12,419,995,863 654,990,948 1,042,332,172 (1,359,862,495) 16,909,050,051 1.154 2019 4,117,936,086 1,645,625,551 12,865,889,234 673,157,602 960,517,474 235,213,572 19,152,024,315 1.118 2020 4,572,656,086 2,062,403,500 14,391,944,472 555,590,799 1,069,343,294 (1,502,594,880) 20,038,161,673 1.105 2021 4,583,572,430 2,180,402,821 15,771,704,960 735,349,151 901,033,728 (1,566,783,409) 21,134,581,379 1.080 2022 4,954,061,451 2,119,297,161 21,130,138,800 769,878,442 865,999,533 (5,007,480,681) 23,292,137,822 1.006 2023 5,114,251,479 2,390,799,122 19,187,324,494 771,503,561 1,053,305,086 1,794,715,792 28,768,892,412 0.883 Tax rate for general City operations is limited to $3.10 per $1,000 of assessed value (RCW 84.52.043). Tax rate limit may be reduced for any of the following reasons:Levy Limit; The One Percent Constitution Limit; City may levy taxes below the legal limit. For further explanation refer to Note 4 Property Taxes. 4Change to state law (RCW 84. 40.045 and 84.40.175) by the 2013 Legislature eliminated revaluation of government owned parcels. 2Includes adjustments to the tax base for senior citizen exemptions, prior year omits, etc. 3King County Assessor Annual Reports 1King County Department of Assessments Data; prior year data has been updated with current method of data collection via City of Renton GIS Services. Sources: TABLE 10 ASSESSED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS REAL PROPERTY 1 3.152 2.833 2.710 1.610 1.154 1.118 1.105 1.080 1.006 0.883 0.500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500 5.000 5.500 6.000 $- $5 $10 $15 $20 $25 $30 $35 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Billions Total Taxable Assessed Value Direct Tax Rate 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-16 TABLE 11 PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS DIRECT RATES OVERLAPPING RATES CITY OF RENTON CONSOLIDATED LEVY SCHOOL DISTRICT FISCAL YEAR OPERATING MILLAGE DEBT SERVICE MILLAGE TOTAL CITY MILLAGE State of Washington KING COUNTY OPERATING MILLAGE KING COUNTY DEBT SERVICE MILLAGE Port (Operating and Debt) Total Consolidated Levy (State, County & Port) SPECIAL DISTRICTS1 OPERATING MILLAGE DEBT SERVICE MILLAGE BUILDING FUND MILLAGE TOTAL SCHOOL MILLAGE TOTAL OVERLAPPING MILLAGE TOTAL DIRECT AND OVERLAPPING MILLAGE 2014 3.15158 - 3.15158 2.47044 1.32983 0.18622 0.21533 4.20182 1.55393 2.44841 2.43218 0.52436 5.40495 11.16070 14.31228 2015 2.83283 - 2.83283 2.28514 1.19644 0.14878 0.18885 3.81921 1.44353 2.41546 1.71412 0.46343 4.59301 9.85575 12.68858 2016 2.70956 - 2.70956 2.16898 1.32977 0.15051 0.16954 3.81880 1.38929 2.35107 2.57140 0.43248 5.35495 10.56304 13.27260 2017 1.60954 - 1.60954 2.03205 1.24349 0.13945 0.15334 3.56833 2.58252 2.30780 1.33954 1.31244 4.95978 11.11063 12.72017 2018 1.15364 - 1.15364 2.91820 1.20156 0.12579 0.13518 4.38073 2.36018 2.32725 1.19417 1.14765 4.66907 11.40998 12.56362 2019 1.18417 - 1.18417 2.62922 1.09639 0.12267 0.12266 3.97094 1.73095 1.50000 1.03306 0.97338 3.50644 9.20833 10.39250 2020 1.10460 - 1.10460 3.02799 1.12785 0.11168 0.11944 4.38696 2.13786 1.48644 1.09602 0.90622 3.48868 10.01350 11.11810 2021 1.08010 - 1.08010 3.08823 1.13522 0.11166 0.11984 4.45495 2.09810 1.41534 1.14293 0.91142 3.46969 10.02274 11.10284 2022 1.00575 - 1.00575 2.81695 1.12195 0.10632 0.11258 4.15780 1.93263 1.35001 1.32199 0.87920 3.55120 9.64163 10.64738 2023 0.88303 - 0.88303 2.31104 0.96323 0.12700 0.09429 3.49556 1.59768 1.07052 1.37467 0.77880 3.22399 8.31723 9.20026 Source: King County Codes and Levies 1 Special Districts include Emergency Medical Services, Hospital districts, Library, Flood Zones, Fire Districts, and Other. 14.31228 12.68858 13.27260 12.72017 12.56362 10.39250 11.11810 11.10284 10.64738 9.20026 - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 City Consolidated Levy Special Districts School Districts Total Direct and Overlapping 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-17 TABLE 12 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS TOTAL TAX COLLECTED WITHIN THE 1 COLLECTIONS 1,2 TOTAL COLLECTIONS TO FISCAL LEVY FOR FISCAL YEAR OF THE LEVY IN SUBSEQUENT DATE 2 YEAR FISCAL YEAR AMOUNT % OF LEVY YEARS AMOUNT % OF LEVY 2014 35,520,000 35,054,493 98.7%467,763 35,522,256.68 100.0% 2015 36,420,000 36,026,892 98.9%392,690 36,419,581.56 100.0% 2016 37,269,743 36,862,540 98.9%430,328 37,292,868.44 100.1% 2017 24,200,000 23,756,999 98.2%444,793 24,201,792.21 100.0% 2018 19,400,000 19,192,947 98.9%145,856 19,338,802.56 99.7% 2019 21,058,328 20,833,805 98.9%N/A 20,833,805.00 98.9% 2020 21,985,155 21,689,642 98.7%N/A 21,689,641.59 98.7% 2021 22,644,964 22,376,103 98.8%N/A 22,376,103.43 98.8% 2022 23,326,105 23,034,194 98.7%N/A 23,034,194.31 98.7% 2023 25,257,992 24,949,802 98.8%N/A 24,949,802.25 98.8% Sources: 1 Annual Tax Receivable Summary from King County 2 Includes Collections and Levy Changes in subsequent years 95% 96% 97% 98% 99% 100% $- $5 $10 $15 $20 $25 $30 $35 $40 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Millions Tax Levied Collected in Year Levied 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-18 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 RETAIL TRADE SECTOR Furniture 1,552,003$ 1,670,492$ 1,727,458$ 1,820,848$ 514,310$ 284,862$ 271,641$ 323,547$ 238,271$ 359,173$ Electronics and Appliances 785,507 815,051 832,583 815,267 860,895 821,722 800,336 915,084 1,009,391 947,718 General Merchandise 1,733,558 1,826,260 1,856,109 1,859,900 1,790,704 1,726,997 1,750,719 1,840,937 2,040,002 1,732,923 Misc Retail Trade 653,772 635,438 545,156 598,632 2,060,038 2,485,865 2,398,916 3,128,152 3,792,017 3,736,912 Others 1,992,620 2,166,015 2,334,225 2,616,887 2,529,467 2,681,185 2,951,365 3,234,044 3,237,138 2,952,624 Subtotal Retail 6,717,460 7,113,256 7,295,531 7,711,534 7,755,414 8,000,631 8,172,977 9,441,764 10,316,819 9,729,350 OTHER SECTORS Construction 2,316,188 3,019,042 4,682,830 4,246,126 4,585,841 3,751,460 3,094,016 3,947,531 4,449,073 6,335,851 Manufacturing 446,615 448,230 514,526 460,241 500,576 491,889 478,853 482,408 499,418 509,544 Transportation 770,889 1,592,590 1,295,994 1,090,118 1,349,230 1,370,784 918,986 1,184,942 1,513,657 1,852,950 Wholesale 1,157,750 1,198,961 1,435,378 1,405,676 1,571,217 1,654,800 1,645,489 1,752,371 2,505,766 2,173,157 Automotive 4,104,744 4,597,151 4,809,026 4,775,263 5,118,532 5,220,618 4,735,375 6,848,390 7,435,485 6,445,517 Services 4,576,039 5,145,373 5,635,186 5,884,292 6,855,309 7,178,122 6,696,450 7,990,388 9,672,647 9,932,346 Miscellaneous 590,685 566,166 684,762 758,384 692,516 650,275 710,691 1,012,239 1,122,076 1,128,172 Subtotal - Other Sectors 13,962,910 16,567,513 19,057,702 18,620,100 20,673,221 20,317,948 18,279,860 23,218,269 27,198,122 28,377,537 Total Sales Tax 20,680,370$ 23,680,769$ 26,353,233$ 26,331,634$ 28,428,635$ 28,318,579$ 26,452,837$ 32,660,033$ 37,514,941$ 38,106,887$ Source : City of Renton Finance Division In 2007, the State of Washington changed industry classification from the Standard Industry Classification (SIC) to the North American Industry Classification System (NAICS). This change reclassified various other retail activities to the expanded service classification. TABLE 13 SALES TAX COLLECTIONS BY SECTOR LAST TEN FISCAL YEARS $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2014 2015 2016 2017 2018 2019 2020 2021 2023 Retail Construction Manufacturing Transportation Wholesale Automotive Services Miscellaneous 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-19 TABLE 14 RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES FISCAL YEAR GENERAL OBLIGATION BONDS SPECIAL ASSESSMENT BONDS OTHER GENERAL OBLIGATION2 REVENUE BONDS OTHER LONG TERM DEBT TOTAL PRIMARY GOVERNMENT DEBT PERCENTAGE OF PERSONAL INCOME1 DEBT PER CAPITA % of Actual Taxable Value of Property 2014 41,882,832 - 34,639,998 28,677,301 3,951,670 109,151,801 7.20%1,124 1.11% 2015 37,399,331 - 33,340,737 27,175,783 3,248,163 101,164,014 6.23%1,027 0.96% 2016 32,867,371 - 32,220,614 25,547,511 2,639,258 93,274,754 5.39%921 0.67% 2017 29,093,663 - 31,052,617 24,919,359 2,244,083 87,309,722 4.68%850 0.58% 2018 24,705,089 - 29,845,813 22,740,572 1,898,266 79,189,740 3.90%761 0.47% 2019 42,998,621 - 24,588,550 20,444,953 1,552,448 89,584,571 4.19%856 0.47% 2020 37,587,428 - 23,594,046 18,109,334 1,206,630 80,497,438 3.66%763 0.40% 2021 31,974,425 - 22,434,586 15,728,715 860,812 70,998,538 2.91%663 0.34% 2022 28,976,853 - 21,316,057 13,303,096 545,295 64,141,300 N/A 599 0.30% 2023 26,847,965 - 18,775,194 10,767,477 298,021 56,688,656 N/A 525 0.20% Source : City of Renton Finance Division 1 The percentage of Personal Income column is based on personal income of King County; 2022 personal income is not available. (See Table 19). Renton data is not available. 2 Other GO debt includes debt issued by related entities that are backed by the City's full faith and credit as well as intergovernmental loans and capital leases. Prior years have been updated to reflect the Capital Lease agreement that started in 2014. $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Obligation (Governmental)Other Long Term (Governmental)Revenue (Business-Type)Other Long Term (Business-Type) 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section , 7-20 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 LEGAL DEBT MARGIN CALCULATION Taxable Assessed value 11,332,326,913$ 12,936,757,619$ 13,812,773,159$ 15,106,038,959$ 16,909,050,051$ 19,152,024,315$ 20,038,161,673$ 21,134,581,379$ 23,292,137,822$ 28,768,892,412$ Total Taxable Assessed Value 11,332,326,913 12,936,757,619 13,812,773,159 15,106,038,959 16,909,050,051 19,152,024,315 20,038,161,673 21,134,581,379 23,292,137,822 28,768,892,412 Debt limit 1.5% of General purpose limit, non-voted 169,984,904 194,051,364 207,191,597 226,590,584 253,635,751 287,280,365 300,572,425 317,018,721 349,382,067 431,533,386 1.0% General purpose limit, voted 113,323,269 129,367,576 138,127,732 151,060,390 169,090,501 191,520,243 200,381,617 211,345,814 232,921,378 287,688,924 2.5% General purpose combined limit 283,308,173 323,418,940 345,319,329 377,650,974 422,726,251 478,800,608 500,954,042 528,364,534 582,303,446 719,222,310 2.5% Utility purpose limit, voted 283,308,173 323,418,940 345,319,329 377,650,974 422,726,251 478,800,608 500,954,042 528,364,534 582,303,446 719,222,310 2.5% Open space, park facilities, voted 283,308,173 323,418,940 345,319,329 377,650,974 422,726,251 478,800,608 500,954,042 528,364,534 582,303,446 719,222,310 Total debt limit 849,924,518 970,256,821 1,035,957,987 1,132,952,922 1,268,178,754 1,436,401,824 1,502,862,125 1,585,093,603 1,746,910,337 2,157,666,931 Debt applicable to limit General obligation bonds 41,882,832 37,399,331 32,867,371 29,093,663 24,705,089 42,998,621 37,587,428 31,974,425 28,976,853 26,847,965 Other long term debt 34,639,998 33,340,737 32,220,614 31,052,617 29,845,813 24,588,550 23,594,046 22,434,586 21,316,057 18,775,194 Total Debt 76,522,830 70,740,068 65,087,985 60,146,280 54,550,902 67,587,171 61,181,474 54,409,011 50,292,909 45,623,159 Less: Amount set aside for repayment of general obligation debt and contracts payable (1,639,891) (2,368,177) (2,428,018) (2,359,933) (2,787,931) (4,001,799) (5,053,340) (5,210,785) (5,200,287) (5,397,442) Total net debt applicable to limit 74,882,939 68,371,891 62,659,967 57,786,347 51,762,971 63,585,372 56,128,134 49,198,226 45,092,622 40,225,717 Legal debt margin 775,041,580$ 901,884,931$ 973,298,020$ 1,075,166,575$ 1,216,415,783$ 1,372,816,452$ 1,446,733,992$ 1,535,895,377$ 1,701,817,714$ 2,117,441,214$ Percentage of net debt to debt limit 8.81%7.05%6.05%5.10%4.08%4.43%3.73%3.10%2.58%1.86% Source : City of Renton Finance Division State law provides that debt cannot be incurred in excess of the following percentages of the value of the taxable property of the City: 1.5 percent without a vote of the people; 2.5 percent with a vote of the people;5.0 percent with a vote of the people, provided the indebtedness in excess of 2.5 percent is for utilities; and 7.5 percent with a vote of the people provided the indebtedness in excess of 5.0 percent is for open space development and parks facilities. TABLE 15 LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-21 % OF GEN BONDED2 GENERAL 1 DEBT TO FISCAL BONDED ASSESSED2 ASSESSED PER3 YEAR DEBT VALUE VALUE CAPITA 2014 76,522,830 11,332,326,913 0.68%788 2015 70,740,068 12,936,757,619 0.55%718 2016 65,087,985 13,812,773,159 0.47%643 2017 60,146,280 15,106,038,959 0.40%586 2018 54,550,902 16,909,050,051 0.32%524 2019 67,587,171 19,152,024,315 0.35%646 2020 61,181,474 20,038,161,673 0.31%580 2021 54,409,011 21,134,581,379 0.26%508 2022 50,292,909 23,292,137,822 0.22%423 2023 45,623,159 28,768,892,412 0.16%423 Source: 1 City of Renton Finance Division 2 King County Department of Assessments 3 Population Data can be found in Table 19 TABLE 16 RATIOS OF GENERAL BONDED DEBT OUSTANDING TO ASSESSED VALUE LAST TEN FISCAL YEARS $- 100 200 300 400 500 600 700 800 900 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-22 Utilities GOVERNMENTAL UNIT Debt Outstanding1 Estimated Percent Applicable2 Estimated Share of overlapping debt City of Renton Direct Debt 45,623,159$ 100%45,623,159$ City of Renton Overlapping Debt 4 King County 3 870,837,000 3.27%28,476,370 Port of Seattle 315,360,000 3.27%10,312,272 Renton School District #403 543,620,000 68.45%372,107,890 Issaquah School District #411 642,350,000 2.98%19,142,030 Kent School District #415 166,141,000 0.72%1,202,196 Fire District 10-1 1,500,000 0.56%8,408 King County Library 15,670,000 1.06%166,102 City of Renton Overlapping Debt 431,415,268 Total Direct and Overlapping Debt 477,038,426$ Sources: 2 King County Department of Assessments TABLE 17 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT 1 King County Department of Executive Services ⁴ Overlapping percentages are determined by checking within the levy codes of the reporting district to see which taxing districts overlap with that reporting district. For example, within levy code 2100, the Renton School District and the King County Library district overlap with the city and both have debt. Since they both have debt and they overlap with the City, those two districts are reported and the value within that levy code is reported as overlapping with the school and library districts. 3 King County's gross outstanding debt excludes available cash in debt service funds, proprietary-type debt, debt financed from component unit, credit enhanced program. Renton 10% King County 6% Schools 82% Port of Seattle 2% Others 0% 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-23 TABLE 18 PLEDGED-REVENUE COVERAGE LAST TEN FISCAL YEARS Ratio Fiscal Year Revenue 1 Expenses without Taxes/ Depreciation Net Revenue Available for Debt Service Principal Interest Coverage2 2014 48,247,542 29,685,885 18,561,657 3,253,612 1,243,751 4.13 2015 50,143,096 30,737,021 19,406,075 2,218,509 1,124,534 5.80 2016 50,614,218 39,147,449 11,466,769 2,348,901 887,754 3.54 2017 53,140,049 35,056,056 18,083,993 2,165,175 669,440 6.38 2018 54,486,431 35,196,065 19,290,366 2,473,986 556,599 6.37 2019 54,435,195 38,164,206 16,270,989 2,590,818 514,821 5.24 2020 53,911,213 35,826,799 18,084,414 2,630,818 470,315 5.83 2021 55,588,405 35,441,375 20,147,030 2,675,818 423,557 6.50 2022 57,888,652 39,566,044 18,322,608 2,690,517 376,009 5.98 2023 65,622,138 40,503,098 25,119,040 2,757,647 327,678 8.14 1 Revenue includes operating revenue, interest revenue, and other non-operating revenue, net of utility taxes. 2 Bond financing requirements are that the average annual coverage is at least 1.25 times the annual debt service for Water and Sewer revenue bonds. Revenue Debt Service 4.13 5.80 3.54 6.38 6.37 5.24 5.83 6.50 5.98 8.14 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Waterworks Net Revenue available for debt service Debt Service Coverage 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-24 PER CAPITA PERSONAL PERSONAL SCHOOL POPULATION INCOME INCOME ENROLLMENT 5 RATE 6 FISCAL MEDIAN RENTON SCHOOL YEAR KING COUNTY 2 RENTON 1 KING COUNTY 2 KING COUNTY 3 AGE 4 DISTRICT KING COUNTY RENTON 2014 2,085,225 97,130 151,506,547,000 72,657 37.44 15,080 4.6%4.2% 2015 2,126,178 98,470 162,285,799,000 76,327 37.24 15,241 4.6%4.3% 2016 2,166,350 101,300 173,036,160,000 79,875 36.20 15,319 3.4% 3.2% 2017 2,203,836 102,700 186,440,160,000 84,598 35.91 15,334 3.6% 3.8% 2018 2,228,364 104,100 203,139,369,000 91,161 35.90 15,414 3.5% 3.7% 2019 2,252,782 104,700 213,956,690,000 94,974 35.91 15,204 3.0% 3.2% 2020 2,274,315 105,500 219,805,809,000 96,647 35.99 14,854 7.6% 8.8% 2021 2,252,305 107,100 243,727,550,000 108,212 37.25 14,620 4.3% 5.1% 2022 2,266,789 107,500 258,004,537,000 113,819 37.26 15,500 2.9% 3.1% 2023 * 107,900 ** 37.64 15,500 3.3% 3.3% Sources: 1 Washington State Office of Financial Management - prior year data updated to reflect actuals where adjusted 2 U.S. Bureau of Economic Analysis. Data shown is for King County. Specific data for the City of Renton is not available. 3 U.S. Bureau of Economic Analysis. Data shown is for King County. Specific data for the City of Renton is not available. 4 Washington State Office of Financial Management - prior year data updated to reflect actuals where adjusted 5 Enrollment is based on entire Renton School District, which includes schools located outside city boundaries but excludes schools of Kent and Issaquah school districts located within Renton city limits. 6 US Bureau of Labor Statistics; average annual rates, not seasonally adjusted, 2010-2014 are provisional and subject to change * Data not available at time of publication TABLE 19 DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS UNEMPLOYMENT 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Series1 Series2 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-25 EMPLOYER EMPLOYEES1 RANK % OF TOTAL EMPLOYEES RANK % OF TOTAL BOEING COMPANY 12,919 1 37.04% 15,201 1 30.99% VALLEY MEDICAL CENTER 4,304 2 12.34%2,173 2 4.43% RENTON SCHOOL DISTRICT 2,659 3 7.62%1,507 4 3.07% KAISER PERMANENTE 2,550 4 7.31%--- --- --- PROVIDENCE WA REGIONAL SERVICES 2,050 5 5.88%1,851 3 3.77% PACCAR INC 1,827 6 5.24%1,254 6 2.56% HEALTHPOINT 1,237 7 3.55%--- --- --- WIZARDS OF THE COAST 1,033 8 2.96%425 8 0.87% BLUE ORIGIN 826 9 2.37%--- --- --- SEATTLE SEAHAWKS 674 10 1.93%--- --- --- CITY OF RENTON --- --- ---700 7 1.43% DOT - FEDERAL AVIATION ADMINISTRATION --- --- ---1,480 5 3.02% RENTON TECHNICAL COLLEGE --- --- ---372 9 0.76% PUGET SOUND EDUCATIONAL SERVICES DISTRICT --- --- ---364 10 0.74% Total Principal Employers 30,079 86.23%25,327 51.63% Total All Other Employers 4,803 13.77%23,724 48.37% Total Employees working within Renton 34,882 100.00%49,051 100.00% Sources: Employee and employer data, business license data, City of Renton TABLE 20 PRINCIPAL EMPLOYERS 2023 2014 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-26 2014 2015 20162 2017 2018 2019 2020 20213 2022 2023 FUNCTION General Government 135.4 139.4 151.0 156.0 161.0 172.1 174.1 174.1 182.6 189.5 Public Safety Police Commissioned Officers 121.5 119.0 124.0 129.0 129.0 129.0 129.0 129.0 129.0 133.0 Non-Commissioned Officers 28.4 29.4 30.4 32.9 32.9 34.4 34.4 35.0 35.0 38.0 Fire Commissioned Officers 140.0 145.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Non-Commissioned Officers 16.0 16.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Public Works Administration 3.0 3.0 2.0 2.0 2.0 2.0 2.0 2.0 4.5 4.5 Airport 0.0 0.0 0.0 0.0 0.0 0.0 0.0 9.0 9.0 10.0 Facilities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 35.0 35.0 35.0 Maintenance Services 80.0 82.0 82.0 87.0 88.0 92.0 92.0 92.0 94.0 94.0 Transportation Systems 31.0 31.0 33.5 38.5 37.5 40.0 40.0 31.0 31.5 31.5 Utility Systems 23.5 23.5 25.5 27.5 27.5 28.5 28.5 28.5 29.5 29.5 Equity Housing and Human Services Administration 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.0 4.0 5.0 Housing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 2.0 2.0 Human Services 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4.5 4.0 4.0 Neighborhood Programs 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 1.0 Culture and Recreation Golf Course 9.5 9.5 9.5 10.5 9.8 9.0 12.0 12.0 12.0 12.0 Museum 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Parks/Recreation 80.0 80.0 83.0 83.0 82.8 89.5 103.5 62.3 62.5 64.5 Total 669.3 678.8 541.9 567.4 571.4 597.5 616.5 620.4 636.6 654.5 Source: City of Renton Finance Division 1 Farmers's Market Program was moved from Community and Economic Department to Community Services Department in 2012. 2 City of Renton Fire transferred to the Renton Regional Fire Authority on July 1, 2016. 3 Citywide reorganization approved 7/19/21. Changes reflected above include the following: Public Works - Airport moved from transportation systems to its own division General Government - Housing moved to Equity Housing and Human Services Culture and Recreation - Facilities, Neighborhood Programs, Human Services moved to Public Works, General Government, Equity Housing and Human Services TABLE 21 FULL TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-27 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 FUNCTION Public Safety Police Physical Arrests 1,515 1,653 1,492 2,099 2,373 2,517 1,515 1,337 1,427 1,641 Parking Violations 4,049 4,464 4,664 4,992 5,114 5,992 3,777 2,588 3,807 4,159 Traffic Violations 5,925 4,828 5,152 4,576 5,970 3,946 2,406 1,390 1,129 1,474 Photo Enforcement Violations 21,015 25,562 23,208 25,257 48,281 51,474 34,998 54,813 43,047 43,285 Infractions Non Traffic 149 125 53 43 55 35 46 10 6 22 Criminal Non Traffic 1,522 1,466 1,351 1,430 1,687 1,631 1,778 1,186 1,219 1,478 Fire1 Number of Calls Answered 14,337 14,945 - - - - - - - - Inspections 997 2,517 - - - - - - - - Transportation Street Resurfacing (Miles)2.82 1.67 0.44 2.78 1.07 1.32 0.00 0.00 1.05 4.21 Aircraft Operations 100,544 112,335 118,568 131,702 145,811 128,030 99,972 132,993 116,291 119,984 Physical/Economic Environment Building Permits Received 4,287 4,898 4,830 4,404 5,009 4,735 4,284 4,584 5,257 5,063 Building Permits Issued 4,204 4,691 4,661 4,092 4,732 4,474 4,048 4,198 4,901 4,864 Public Works Permits Received 1,526 1,472 1,468 1,270 1,450 1,335 1,404 1,203 1,135 985 Public Works Permits Issued 1,493 1,359 1,437 1,093 1,214 1,154 1,229 978 1,000 874 Solid Waste Utility Recyclables Collected (Tons/Yr)13,993 15,218 17,846 12,331 14,075 13,309 13,409 13,702 13,808 13,312 Culture and Recreation2 Athletic Field Attendance4 94,000 93,000 94,000 56,000 65,897 93,504 1,090 77,903 90,800 404,035 Community Center Admissions 3 102,308 102,312 98,282 92,026 85,762 85,762 2,133 20,610 61,107 80,452 Rounds of Golf 55,600 56,775 51,546 47,462 48,734 46,581 48,649 56,039 57,750 60,369 1 The Renton Regional Fire Authority formed July 1, 2016 replacing the City of Renton Fire Department. 22020 numbers are significantly lower than prior years due to closures related to the Covid-19 pandemic. 3 Community Center admissions were updated through 2018 using CLASS reports for registered participants, membership pass scans, and drop ins. 4 Numbers prior to 2023 include registered participants only. Starting in 2023, numbers includes registered and passive participants. Source: City of Renton TABLE 22 OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-28 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 City Population 97,130 98,470 101,300 102,700 104,100 104,700 105,500 107,100 107,500 107,900 Water System Service Area Population 60,000 67,125 67,000 68,666 72,164 73,750 75,130 76,270 77,640 77,640 Number of Connections: Single Family 13,764 14,083 14,162 14,190 14,223 14,288 14,378 14,463 14,499 14,517 Multi-Family, Commercial, Industrial 2,715 2,541 2,578 2,557 2,592 2,599 2,586 2,566 2,581 2,571 Irrigation 726 738 756 755 766 765 771 774 782 786 Fire Service 652 663 682 682 690 693 694 696 698 696 Other 2 116 74 81 67 88 90 84 99 110 112 Total Connections 17,973 18,099 18,259 18,251 18,359 18,435 18,513 18,598 18,670 18,682 Water Production/Consumption (in hundreds of cubic feet - cu ft) (in hundreds of cubic feet - cu ft) Purchased 47,774 54,951 43,009 56,667 57,192 39,003 15,552 15,997 25,931 37,554 Production 3,306,194 3,512,789 3,410,648 3,490,563 3,524,353 3,364,884 3,340,031 3,606,634 3,596,206 3,681,722 Consumption 2,938,282 3,094,114 3,028,174 3,146,552 3,205,135 3,008,546 2,919,760 3,073,295 3,014,683 3,162,417 Non-revenue 415,686 473,626 425,483 400,678 376,410 395,341 435,823 549,336 607,454 556,858 Consumption (thousands of gallons) Average Daily 6,775 7,199 6,971 7,154 7,223 6,896 6,896 7,392 9,853 10,087 Peak Daily4 12,411 13,590 12,751 13,098 12,335 11,687 12,411 12,994 12,243 12,380 Sewer System Service Area Population 80,780 81,759 83,850 86,982 87,402 87,744 89,720 90,560 91,960 94,346 Number of Connections: Single Family 15,154 15,173 15,384 15,507 15,652 15,790 15,923 16,044 16,096 16,279 Multi-Family, Commercial, Industrial, Other 2,708 2,713 2,704 2,714 2,727 2,726 2,707 2,713 2,715 2,895 Out of City Connections 180 233 242 264 279 272 285 296 299 306 Total Connections 18,042 18,119 18,330 18,485 18,658 18,788 18,915 19,053 19,110 19,480 Storm Drainages System Service Area Population 97,130 98,470 101,300 102,700 104,100 104,700 105,500 107,100 107,500 107,900 Number of Connections: Single Family 21,893 22,125 22,352 22,455 22,587 22,605 22,785 22,915 22,956 23,030 Multi-Family, Commercial, Industrial, Other 1,728 1,732 1,744 1,750 1,755 1,736 1,732 1,734 1,721 1,720 Total Connections 23,621 23,857 24,096 24,205 24,342 24,341 24,517 24,649 24,677 24,750 Solid Waste 3 Service Area Population -------------------- Number of Connections: Single Family 17,000 17,154 17,129 16,926 23,577 24,034 24,095 24,283 23,394 24,493 Multi-Family, Commercial, Industrial, Other 1,533 1,589 1,586 1,554 1,759 1,858 1,947 1,844 1,849 1,842 Total Connections 18,533 18,743 18,715 18,480 25,336 25,892 26,042 26,127 25,243 26,335 1 Data for prior years provided where available.2 Includes wholesale water provided to the Skyway Water and Sewer District througha single metered connection. 3 2018 numbers are sourced from the Republic Services Annual Report as the City of Renton no longer handles the billing for Solid Waste. 4 2020 number updated from 11,687 to 12,411 based on Water's 2020 annual report TABLE 23 UTILITY SYSTEMS SUPPLEMENTAL OPERATING INFORMATION LAST TEN FISCAL YEARS 1 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-29 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 FUNCTION Public safety Police Stations 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Police Patrol Districts 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 Fire stations1 6.0 6.0 -------- Transportation Street (miles)294.0 304.1 315.5 311.0 311.0 311.0 318.0 318.0 319.0 319.0 Streetlights 4,302 4,342 4,720 4,878 5,120 5,120 5,237 5,282 5,383 5,536 Culture and recreation Parks acreage 1,227.0 1,239.5 1,240.4 1,245.5 1,245.5 1,244.5 1,244.8 1,244.8 1,244.8 1,246.5 Parks 32 32.0 32.0 32.0 32.0 32.0 32.0 32.0 32.0 32.0 Swimming pools 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Tennis courts 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 Community centers2 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 5.0 Waterworks Utility Water mains (miles)304.6 307.5 311.0 313.0 314.0 315.0 316.0 318.0 318.0 318.0 Fire hydrants 3,697 3,740 3,769 3,777 3,811 3,818 3,838 3,870 3,880 3,893 Sanitary sewers (miles)225.9 231.2 232.1 233.9 234.6 235.8 235.9 234.9 233.2 235.2 Storm sewers (miles)267.7 265.6 276.6 278.0 279.9 282.8 286.1 287.2 290.0 293.9 1 City of Renton Fire and ES Services employees transferred to the Renton Regional Fire Authority on July 1, 2016. Source: City of Renton Departments 2Includes the Renton Community Center, the Senior Activity Center, and the Highlands Neighborhood Community Center that are regularly programmed and the North Highlands Community Center and Family First Center that are leased out and is not programmed by the City of Renton; Family First Center added in 2023 TABLE 24 CAPITAL ASSETS STATISTICS BY FUNCTION LAST TEN FISCAL YEARS 2023 Annual Comprehensive Annual Report City of Renton, Washington Statistical Section, 7-30 City of Renton 1055 S Grady Way Renton, WA 98057 rentonwa.gov