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Home My WebLink AboutQUARTER 3 2024Page 1 of 31 OVERVIEW This quarterly financial report reflects the city’s revenue and expenditures/expenses for the fiscal year through September 30, 2024. A detailed analysis, including current to prior year and budget to actual comparison is included for each city fund. Excluded from this report are the city’s fiduciary funds as these funds are held on behalf of others and are not available for city use. Budget figures shown reflect amounts authorized in ORD 6140, which includes the year end budget adjustment approved October 21, 2024. GENERAL FUND The General Fund is used to account for resources that are not generally dedicated for a specific purpose. The General Fund is used to meet the basic services that the city provides including, but not limited to, police protection, parks and recreation, human services, municipal court, street maintenance and planning, economic development, and administrative functions. The table below displays the YTD revenues and expenditures for the General Fund, including comparison to prior year, comparison to YTD budget amounts, and percentage of annual budget. YTD budget amounts are generally based on the collection/disbursement patterns for the same period of the preceding two (2) years, with the following exceptions: property tax revenue budgets are based on the collection patterns over the preceding four (4) years and sales tax revenue budgets are based on the collection patterns over the preceding five (5) years. General Fund YTD Prior Year YTD YTD Budget % BUDGET REVENUES Taxes 80,321,844$ 108,207,534$ 77,225,309$ 82,344,284$ 2,022,440$ 5,118,975$ 76.10% Licenses & Permits 5,136,398 5,625,602 4,366,572 5,094,375 (42,023)$ 727,803 90.56% Intergovernmental 4,003,872 8,322,272 6,296,638 6,640,728 2,636,856$ 344,090 79.79% Charges for Services 8,808,288 11,138,124 9,151,688 9,389,518 581,230$ 237,830 84.30% Fines and Penalties 2,848,680 3,841,442 2,918,525 2,755,619 (93,061)$ (162,906) 71.73% Miscellaneous 4,035,137 6,334,644 3,800,883 6,418,303 2,383,166$ 2,617,420 101.32% Other Financing Sources 51,751 1,129,684 1,129,684 392,763 341,012$ (736,921) 34.77% TOTAL REVENUES 105,205,970 144,599,302 104,889,299 113,035,590 7,829,620 8,146,291 78.17% EXPENDITURES City Attorney 2,282,858 3,374,309 2,526,909 2,415,807 (132,949) 111,102 71.59% Community and Economic Development 9,550,930 15,956,535 11,612,305 9,841,090 (290,160) 1,771,215 61.67% Council 538,965 799,494 607,193 565,996 (27,031) 41,197 70.79% Court Services 2,396,563 3,942,510 2,943,401 2,523,689 (127,126) 419,712 64.01% Executive Services 4,509,860 6,930,674 5,191,543 5,022,946 (513,086) 168,597 72.47% Finance 3,284,293 5,958,028 4,121,951 3,561,848 (277,555) 560,103 59.78% Human Resources 1,179,026 2,262,501 1,678,466 1,313,406 (134,380) 365,060 58.05% Parks and Recreation 14,089,102 22,059,954 15,768,411 14,861,554 (772,452) 906,857 67.37% Police 36,501,836 53,916,299 39,277,473 38,316,052 (1,814,216) 961,421 71.07% Public Works 12,069,681 19,066,777 13,523,503 12,464,040 (394,359) 1,059,463 65.37% Other Non-Departmental 2,318,104 18,632,310 4,339,086 1,567,612 750,492 2,771,474 8.41% TOTAL EXPENDITURES 88,721,218 152,899,391 101,590,239 92,454,040 (3,732,822) 9,136,199 60.47% Change in Fund Balance 16,484,752 (8,300,089) 3,299,060 20,581,550 4,096,798 17,282,490 N/A Beginning Fund Balance 83,605,978 99,226,475 99,226,475 99,226,476 ENDING FUND BALANCE 100,090,730$ 90,926,386$ 102,525,535$ 119,808,026$ Operating Reserve 17,662,783 17,346,914 17,346,914 17,346,914 Economic Development Reserve 2,500,000 2,500,000 2,500,000 2,500,000 AVAILABLE FUND BALANCE 79,927,947$ 71,079,472$ 82,678,621$ 99,961,112$ Summary of Sources and Uses Favorable (Unfavorable) 2023 2024 Variance YTD Actual Annual Budget YTD Budget YTD Actual Quarterly Financial Report 3rd Quarter 2024 Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 2 of 31 GENERAL FUND REVENUES The following tables provide a more detailed summary of each revenue category within the General Fund. Detailed explanations have been provided for variances from prior year or YTD budget in excess of $100K. All variances are shown in a favorable/(unfavorable) format. TAXES Property Tax – Property tax collections by King County are above prior year. The increase is due to the city increasing the property tax levy the allowable 1% by state law. The amount is below 2024 budget due to timing of property tax remitted from King County. Local Retail Sales Tax – Local retail sales tax exceeded prior year and YTD budget. The majority of the increase in local retail sale tax revenues over the prior year is coming from better-than-expected wholesale and miscellaneous sectors from one-time transactions related to building improvement equipment purchases and direct consumer sales of technology equipment offset by a decrease in general retail and construction. When these one time transactios are excluded, the overall change over prior year is approximately a 2% increase. Please see the September sales tax report for information regarding sales tax figures by industry. Criminal Justice Sales Tax – Criminal justice sales tax represents a 0.1% sales tax imposed by the county for criminal justice purposes. The county must share 90% of the revenue collected with all cities and towns in the county on a per capita basis. The amount over budget is due to higher than anticipated revenue primarily driven by better-than- expected sales tax collections from one time and ongoing sources as noted above as well as a conservative budget estimate anticipating a recession in 2024. Natural Gas Use Tax – Natural gas use tax represents a 6% tax on the usage of natural gas within the city that has not otherwise been subject to city utility tax. The tax is only paid by a limited number of large companies companies and the decrease from pior year is mainly due to one company having limited operations in 2024. Admissions Tax – An increase in admission tax over YTD budget is due better than anticipated performance of one of the largest admission taxpayers in Renton resulting in higher tax collection. The decrease from prior year is also due to the large new taxpayer making lump sum payments of admission tax due to the city in early 2023 relating to 2022 sales. Utility Tax – Electrical and city utilities are the primary drivers of the increase over prior year and amount above YTD budget due to increased customer rates coupled with increased utility usage. Natural gas decrease from prior year is due to higher temperatures in early 2024 compared to 2023, in addition it is possible more consumers are converting to electric appliances and heating. Cable tax is under budget and decreased from prior year due to the continued decline in cable television usage that is expected as other streaming services become more common. The breakdown of utility tax is as follows: 2023 2024 2024 Actual Budget Actual $ % $ % Property Tax 13,713,599 14,171,133 14,008,316 294,717 2.1%(162,817) -1.1% Local Retail Sales Tax 27,947,349 27,035,630 28,907,418 960,069 3.4% 1,871,788 6.9% State Sales Tax Credit 484,587 488,417 505,742 21,155 4.4% 17,325 3.5% Criminal Justice Sales Tax 2,939,129 2,375,791 2,867,781 (71,348) -2.4%491,990 20.7% Natural Gas Use Tax 290,414 167,027 188,799 (101,615) -35.0%21,772 13.0% Admission Tax 960,133 599,649 786,509 (173,624) -18.1%186,860 31.2% Utility Tax 14,003,239 13,442,555 14,424,511 421,272 3.0% 981,956 7.3% Leasehold Excise Tax 207,019 140,000 185,260 (21,759) -10.5%45,260 32.3% Gambling Excise Tax 2,762,374 2,792,164 3,248,108 485,734 17.6% 455,944 16.3% B&O Tax 17,014,001 16,012,943 17,221,840 207,839 1.2% 1,208,897 7.5% YTD Total 80,321,844$ 77,225,309$ 82,344,284$ 2,022,440$ 2.5% 5,118,975$ 6.6% Annual Total 112,900,398$ 108,207,534$ Taxes by Type Revenue 2024 vs. 2023 2024 vs. Budget Year to Date through September Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 3 of 31 Gambling Excise Tax – Gambling excise tax can fluctuate based on the economy; therefore, budget is established conservatively and includes a historical average from prior years. Current year revenue is above budget and prior year due to substantial increases from the card games tax. Business and Occupation (B&O) Tax – B&O tax revenues are over budget and prior year resulting from an increase in the maximum tax cap paid by any one taxpayer, and budget conservatively estimated similar to sales taxes. LICENSES & PERMITS Franchise Fees – The decrease from prior year and under budget is due to lower payments for cable franchise fees, which is based on usage. As cable television usage decreases with other streaming services, the city may continue to see a decrease in franchise fees. Business Licenses – The amount over budget is due to the increased outreach by the city’s tax and licensing division. This division is actively performing outreach informing businesses of the licensing requirements within the city. The city has 9,395 active business licenses, an 11 percent increase over prior year. In addition, some of the new businesses registering with the city are required to pay back years if they may have been conducting business in Renton prior to receiving their license. Building Permits – Building permits are collected upon permit issuance. The increase from prior year and budget is primarily related to a large building improvement project in the valley. INTERGOVERNMENTAL 2023 2024 2024 Tax by Type YTD Actual YTD Budget YTD Actual $ % $ % Electrical 5,083,763$ 4,950,105$ 5,402,561$ 318,798$ 6.3% $ 452,456 9.1% Natural Gas 1,663,732 1,429,005 1,505,549 (158,183) -9.5% 76,544 5.4% Cell 355,841 353,989 392,689 36,848 10.4% 38,700 10.9% Phone 454,615 504,361 465,591 10,976 2.4% (38,770) -7.7% Cable 968,941 896,936 850,255 (118,686) -12.3% (46,681) -5.2% Garbage 646,333 581,487 672,864 26,531 4.1% 91,377 15.7% City Utilities 4,830,014 4,726,672 5,135,002 304,988 6.3% 408,330 8.6% YTD Total 14,003,239$ 13,442,555$ 14,424,511$ 421,272$ 3.0%981,956$ 7.3% 2024 vs. 2023 2024 vs. Budget 2023 2024 2024 Actual Budget Actual $ % $ % Franchise Fees 1,062,148 1,137,036 957,967 (104,181) -9.8% (179,070) -15.7% Business Licenses 915,803 716,220 922,299 6,496 0.7% 206,080 28.8% Animal Licenses 48,810 50,305 43,710 (5,100) -10.4% (6,595) -13.1% Building Permits 3,079,997 2,420,198 3,144,964 64,967 2.1% 724,766 29.9% ROW/Street Excavation Permits 28,790 41,765 24,670 (4,120) -14.3% (17,095) -40.9% Special Event Permits 850 1,048 765 (85) -10.0% (283) -27.0% YTD Total 5,136,398$ 4,366,572$ 5,094,375$ (42,023)$ -0.8%727,804$ 16.7% Annual Total 6,721,960$ 5,625,602$ Year to Date through September Revenue 2024 vs. 2023 2024 vs. Budget Licenses & Permits by Type 2023 2024 2024 Actual Budget Actual $ % $ % State Shared Revenue 3,100,355 2,921,999$ 3,103,913 3,558$ 0.1% 181,914$ 6.2% Federal Grants 457,787 2,137,073 2,804,525 2,346,738 512.6% 667,452 31.2% State Grants 398,255 1,158,222 607,182 208,927 52.5%(551,040) -47.6% Local Grants 47,475 79,344 125,108 77,633 163.5% 45,764 57.7% YTD Total 4,003,872$ 6,296,638$ 6,640,728$ 2,636,856$ 65.9% 344,090$ 5.5% Annual Total 5,396,038$ 8,322,272$ Intergovernmental by Type Revenue 2024 vs. 2023 2024 vs. Budget Year to Date through September Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 4 of 31 State Shared Revenue – The amount over budget is due to a high crime judicial assistance distribution received in Q3 that was not budgeted as well as higher than anticipated marijuana and fuel tax revenue distribution. State shared revenue is based on consumers and can fluctuate from year to year. The breakdown of state shared revenue is as follows: Federal/State/Local Grants – Federal/State/Local grant revenue varies significantly from year-to-year based on volume of grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is budgeted at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried forward each year until the grant funds are fully received or the grant agreement expires. The variance is largely due to recognizing the remaining ARPA grant funds in Q1 of 2024. CHARGES FOR SERVICES Public Safety Services – The increase in public safety services from prior year is primarily due to a new contract for the Criminal Justice Training Center in which the city is reimbursed for an officer’s salary while assisting with training new officers. Development Services –The increase from prior year and over budget is due to plan checks and environmental review, with the largest plan check in 2024 for Alaska Airlines building improvement project in the valley. Parks and Recreation Fees – The decrease from prior year is largely due to a substantial grant received in Q1 of 2023, the SEEK grant of $129K. The increase over 2024 budget is due to higher participation in community center self- sustaining programs than projected as well as activity at the Henry Moses Aquatic Center. These revenues were budgeted conservatively on the recovery from covid as many operations were limited, many of these revenue sources are now fully recovered to pre-pandemic levels. Interfund Services – Interfund services revenue increased from prior year due to the newly created sustainability division, which is charged out to utility funds, and cost of living salary increases. The amount under the 2024 budget is 2023 2024 2024 Tax by Type YTD Actual YTD Budget YTD Actual $ % $ % Judicial Contribution 33,717$ 42,729$ 33,588$ (129)$ -0.4% (9,141)$ -21.4% Crim Just - High Crime - - 91,105 91,105 N/A 91,105 100.0% Crim Just - Pop 28,836 18,343 30,575 1,739 6.0%12,232 66.7% Crim Just - Spec Prog 101,852 84,111 107,500 5,648 5.6%23,389 27.8% WASPC Legislative 44,715 41,666 41,666 (3,049) N/A - 0.0% State DUI 3,851 11,520 8,188 4,337 112.6%(3,332) -28.9% Marijuana Distribution 214,251 170,648 218,436 4,185 2.0%47,788 28.0% Liquor Profits 616,444 600,019 610,907 (5,537) -0.9%10,888 1.8% Liquor Excise Tax 576,334 575,846 549,235 (27,099) 95.3%(26,611) -4.6% Fuel Tax 1,480,355 1,377,117 1,412,713 (67,642) -4.6%35,596 2.6% YTD Total 3,100,355$ 2,921,999$ 3,103,913$ 3,558$ 0.1%181,914$ 6.2% 2024 vs. 2023 2024 vs. Budget 2023 2024 2024 Actual Budget Actual $ % $ % Passport Fees 7,109 7,337 6,975 (134) -1.9% (362) -4.9% Court Services 108,474 115,272 91,654 (16,819) -15.5% (23,617) -20.5% General Government Services 77 - 73 (3) -4.4%73 100.0% Public Safety Services 482,617 627,355 639,106 156,489 32.4% 11,751 1.9% Development Services 1,785,479 1,705,600 2,003,104 217,626 12.2% 297,505 17.4% Transportation Services 52,458 - 66,690 14,232 27.1% 66,690 100.0% Social Services 116,230 39,022 18,330 (97,900) -84.2% (20,693) -53.0% Parks and Recreation Fees 1,604,863 1,060,506 1,467,230 (137,634) -8.6%406,723 38.4% Interfund Services 4,650,982 5,596,597 5,096,356 445,375 9.6%(500,241) -8.9% YTD Total 8,808,288$ 9,151,688$ 9,389,518$ 581,231$ 6.6% 237,831$ 2.6% Annual Total 11,287,999$ 11,138,124$ Year to Date through September Charges for Services by Type Revenue 2024 vs. 2023 2024 vs. Budget Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 5 of 31 due to timing of recording budgeted transfers for capital projects as these are dependent on the timing of the project costs. FINES AND PENALTIES Photo Enforcement Program – Photo enforcement is currently under the 2024 budget and prior year due to an 8% decrease in first notices issuances and a 16% decrease overall collections. The decrease in collections is primarly due to a new collections agency contract in 2023 caused a one-time increase in collections for Q1 of 2023. Non-Court Fines, Forfeitures and Penalties – The increase in over prior year and 2024 budget is mainly due to a reclassification between tax revenues and fines and penalties in 2024. The increase is also due to higher levels of business license penalties and code violations, specifically from one vendor receiving daily code violation fines. MISCELLANEOUS REVENUES Interest and Other Investment Earnings – Investment earnings have varied over the past couple of years as the market has seen large fluctuations in interest rates as this revenue is highly influenced by the federal funds rate. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city holds roughly 50% of the total cash and investments for the city in the LGIP. Rents, Leases, and Concessions – Rents, leases, and concessions revenues are currently over the 2024 budget due to recreation facility rentals at the Renton Community Center, Senior Activity Center, HMAC, and other locations as the budget reflected a slow recovery from the pandemic and these revenues are recovering faster than anticipated. Contributions/Donations from Private Sources – The increase over prior year is due to grant reimbursements received from Association of Washington Cities (AWC) for Alternative Response Team Grant (ARTG). Other – The amount over budget and prior year is primarily driven by two new substantial unbudgeted opioid settlements in the amount of $780K received in 2024. These settlements are one time funding, therefore, the increase noted above will not be ongoing. 2023 2024 2024 Actual Budget Actual $ % $ % Civil Penalties 175,273$ 221,888$ 203,475$ 28,202$ 16.1%(18,414)$ -8.3% Photo Enforcement Program 2,525,958 2,546,157 2,141,873 (384,085) -15.2% (404,284) -15.9% Criminal Traffic Misdemeanor Fines 17,592 32,514 9,520 (8,072) -45.9% (22,994) -70.7% Criminal Non-Traffic Fines 2,397 5,522 2,104 (293) -12.2% (3,417) -61.9% Criminal Costs 18,231 27,490 12,032 (6,199) -34.0% (15,458) -56.2% Non-Court Fines, Forfeitures and Penalties 109,229 84,954 386,615 277,386 253.9% 301,661 355.1% YTD Total 2,848,680$ 2,918,525$ 2,755,619$ (93,061)$ -3.3% (162,906)$ -5.6% Annual Total 3,763,898$ 3,841,442$ Year to Date through September Revenue 2024 vs. 2023 2024 vs. Budget Fines and Penalties by Type 2023 2024 2024 Actual Budget Actual $ % $ % Interest and Other Investment Earnings 2,339,024$ 2,031,990$ 3,652,941$ 1,313,917$ 56.2% 1,620,951$ 79.8% Rents, Leases, and Concessions 1,363,359 972,697 1,396,332 32,973 2.4% 423,635 43.6% Contributions/Donations from Private Sources 72,365 279,234 210,162 137,797 190.4%(69,072) -24.7% Other 260,389 516,962 1,158,868 898,479 345.1% 641,906 124.2% YTD Total 4,035,137$ 3,800,883$ 6,418,303$ 2,383,166$ 59.1% 2,617,420$ 68.9% Annual Total 5,896,278$ 6,334,644$ Year to Date through September Revenue 2024 vs. 2023 2024 vs. Budget Miscellaneous by Type Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 6 of 31 OTHER FINANCING SOURCES Transfers from Other Funds – The amount under budget is due to the timing of budgeted transfers. Annual transfers typically occur in December each year. GENERAL FUND EXPENDITURES The following table summarizes expenditures by category for each department within the General Fund. Personnel – Personnel costs are budgeted at 100% of the position cost each year resulting in a budget variance if positions remain open for any part of the year. The increase in personnel costs over prior year is due to filling positions that were previously held vacant in 2023, newly approved positions, as well as cost of living adjustments. Personnel costs under budget are due to open positions; there are currently 59 vacancies as of September 30th. Contracted Services ‐ The amount under budget is mainly non-departmental reserves ($1.3 million) and funding allocated to citywide clean-up ($500K) and CPTED projects ($250K). The increase in contracted services over prior year is due to the following: - Police contracted services increased $500K due to increases in the city’s shared costs at SCORE jail and emergency communication services. - Human Services contracts increased $460K from prior year, primarily due to the security services added to the downtown specifically in and around the parking garage. - City Clerk over $300K due to special election costs incurred from the Raise the Wage initiative. Internal Services – The increase from prior year is primarily due to increased costs for insurance due to premium rate increases and increased facilities maintenance. Transfers Out – The increase over prior year is due to a one-time transfer to leased facilities fund to cover ongoing operating costs. Transfers are typically done in December, however, due to timing of expenditures the transfer was done mid-year. 2023 2024 2024 Actual Budget Actual $ % $ % Transfers from Other Funds -$ 1,083,468$ 317,892$ 317,892 100.0%(765,576) -70.7% Interfund Loan Payment Received 33,359 46,216 33,694 335 1.0%(12,522) -27.1% Insurance Recoveries 18,392$ -$ 19,917$ 1,525 8.3% 19,917 100.0% Sale of Capital Assets - - 21,260 21,260 100.0% 21,260 100.0% YTD Total 51,751$ 1,129,684$ 392,763$ 341,012$ 658.9%(736,921)$ -65.2% Annual Total 1,936,996$ 1,129,684$ Year to Date through September Other Financing Sources by Type Revenue 2024 vs. 2023 2024 vs. Budget General Fund Summary of Uses 2023 Year to Date through September YTD Actual YTD Budget YTD Actual $ % $ % Personnel 55,003,710$ 63,262,221$ 57,113,718$ (2,110,008)$ -3.8%6,148,503$ 9.7% Supplies 1,759,089 1,627,466 1,687,186 71,903 4.1%(59,720) -3.7% Contracted Services 16,431,761 20,661,418 17,559,689 (1,127,928) -6.9%3,101,729 15.0% Capital Outlay 136,973 35,780 90,088 46,885 34.2%(54,308) -151.8% Internal Services 15,368,055 15,730,930 15,730,934 (362,879) -2.4%(4) 0.0% Transfers Out 21,630 272,425 272,425 (250,795) -1159.5%- 0.0% Total Expenditures 88,721,218 101,590,239 92,454,040 (3,732,822) -4.2% 9,136,199 9.0% Annual Total 132,693,237 152,899,395 2024 2024 vs. 2023 2024 vs. Budget Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 7 of 31 DEBT SERVICE FUNDS Debt service funds are used to account for the accumulation of resources for the payment of principal and interest related to the City’s general obligation bond issues. YTD budgets are not prepared for debt service funds. GENERAL GOVERNMENTAL MISCELLANEOUS DEBT FUND The General Governmental Miscellaneous Debt Fund is the only debt service fund maintained by the city. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. Investment Earnings – Investment earnings have varied over the past couple of years as the market has seen large fluctuations in interest rates as this revenue is highly influenced by the federal funds rate. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city holds roughly 50% of the total cash and investments for the city in the LGIP. Principal – Decrease in principal is due to a prior year payment on the FD40 loan, which was paid off in May 2023. The remainder of the principal expenditures will be paid in Q4 of 2024. Interest – The amount under budget is due to timing of debt payments. The remainder of interest on debt will be paid in Q4 of 2024. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 38,319$ 32,642$ 32,358$ (5,961)$ (284)$ 99.13% Investment Earnings 110,262 - 156,790 46,528 156,790 N/A TOTAL REVENUES 148,581 32,642 189,148 40,567 156,506 579.46% EXPENDITURES: Principal 2,748,188 1,995,000 215,000 2,533,188 1,780,000 10.78% Interest 607,063 965,690 498,153 108,910 467,537 51.59% TOTAL EXPENDITURES 3,355,251 2,960,690 713,153 2,642,098 2,247,537 24.09% Transfers In 2,595,376 3,120,775 - (2,595,376) (3,120,775) 0.00% NET TRANSFERS 2,595,376 3,120,775 - (2,595,376) (3,120,775) 0.00% CHANGE IN FUND BALANCE (611,296) 192,727 (524,005) 87,291 (716,732) -271.89% BEGINNING FUND BALANCE, Jan 1 5,262,665 5,412,174 5,412,174 149,509 - 100.00% ENDING FUND BALANCE, Sep 30 4,651,369$ 5,604,901$ 4,888,169$ 236,800$ (716,732)$ 87.21% Debt Service Reserve 2,717,575 2,717,575 2,717,575 AVAILABLE FUND BALANCE 1,933,794$ 2,887,326$ 2,170,594$ VARIANCE FAVORABLE (UNFAVORABLE) GENERAL GOVERNMENTAL MISCELLANEOUS DEBT Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 8 of 31 SPECIAL REVENUE FUNDS Special revenue funds are used to account for revenues that are to be used for a specific purpose as required by law or legislative action. YTD budgets are not prepared for special revenue funds. Detailed explanations will be provided for material differences between prior year and or budgeted amounts. Hotel/Motel Fund The Hotel/Motel Fund accounts for monies collected through an increase of 1% in hotel/motel taxes for the purpose of increasing tourism in the City of Renton, as authorized under RCW 67.28.180. The Lodging Tax Advisory Committee solicits applications for awards and brings their recommendations to Council for approval at least once per year. Awards for events are paid to applicants at the conclusion of the event once certain reporting requirements have been met. Contracted Services – The Lodging Tax Advisory Committee proposed allocations of Lodging Tax funds approved by Council December 2023. The amount under budget is due to timing of payments per the funding allocation. Cable Communications Fund The Cable Communications Fund accounts for funding for promotion and development of cable communications as established by city ordinance. The main use of the fund is to support the broadcasting of City Council meetings on Channel 21. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 396,753$ 434,000$ 406,888$ 10,135$ (27,112)$ 93.75% Contributions 10,000 35,000 30,000 20,000 (5,000) 85.71% Investment Earnings 18,806 - 29,703 10,897 29,703 N/A TOTAL REVENUES 425,559 469,000 466,591 41,032 (2,409) 99.49% EXPENDITURES: Contracted Services 174,848 460,604 223,796 (48,948) 236,808 48.59% TOTAL EXPENDITURES 174,848 460,604 223,796 (48,948) 236,808 48.59% Transfers Out - (10,000) - - - N/A NET TRANSFERS - (10,000) - - - N/A CHANGE IN FUND BALANCE 250,711 (1,604) 242,795 (7,916) 244,399 -15136.85% BEGINNING FUND BALANCE, Jan 1 712,384 889,272 889,272 176,888 - 124.83% ENDING FUND BALANCE, Sep 30 963,095$ 887,668$ 1,132,067$ 168,972$ 244,399$ 117.54% VARIANCE FAVORABLE (UNFAVORABLE) HOTEL/MOTEL 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 41,048$ 57,674$ 35,496$ (5,552)$ (22,178)$ 61.55% Contributions - - 2,596 2,596 2,596 N/A Investment Earnings 9,706 - 11,192 1,486 11,192 N/A TOTAL REVENUES 50,754 57,674 49,284 (1,470) (8,390) 85.45% EXPENDITURES: Supplies 46,230 6,302 2,768 (43,462) 3,534 43.92% Contracted Services 79,011 51,372 33,841 (45,170) 17,531 65.87% TOTAL EXPENDITURES 125,241 97,674 36,609 (88,632) 61,065 37.48% Transfers In - - - - - N/A NET TRANSFERS - - - - - N/A CHANGE IN FUND BALANCE (74,487) (40,000) 12,675 87,162 52,675 N/A BEGINNING FUND BALANCE, Jan 1 453,147 358,300 358,300 (94,847) - 100.00% ENDING FUND BALANCE, Sep 30 378,660$ 318,300$ 370,975$ (7,685)$ 52,675$ 116.55% CABLE COMMUNICATIONS VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 9 of 31 Housing & Supportive Services In accordance with HB 1590, the City Council passed ORD 5983 authorizing an additional 0.1% sales and use tax, effective January 1, 2021. The additional sales and use tax is restricted for housing and related services, in accordance with RCW 82.14.530. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. Taxes – Taxes have exceeded prior year and are currently on track to exceed the annual budget. This tax revenue will increase or decrease with the economy as it is a direct sales tax upon consumer purchases. See additional further analysis for the sales tax ervenues on page 2 Investment Earnings – Investment earnings have varied over the past couple of years as the market has seen large fluctuations in interest rates as this revenue is highly influenced by the federal funds rate. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city holds roughly 50% of the total cash and investments for the city in the LGIP. Contracted Services – The increase over prior year is due to a contract for behavioural and mental health services and assisting with FD CARES plan for the city. The amount under budget is due to Q3 budget adjustment for services to be billed in Q4. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 3,281,295$ 3,500,000$ 3,391,642$ 110,347$ (108,358)$ 96.90% Investment Earnings 173,298 - 369,212 195,914 369,212 N/A TOTAL REVENUES 3,454,593 3,500,000 3,760,854 306,261 260,854 107.45% EXPENDITURES: Contracted Services 40,500 609,000 190,438 149,938 418,562 31.27% TOTAL EXPENDITURES 40,500 609,000 190,438 149,938 418,562 31.27% Transfers In - - - - - N/A Transfers Out - - - - - N/A NET TRANSFERS - - - - - N/A CHANGE IN FUND BALANCE 3,414,093 2,891,000 3,570,416 156,323 679,416 123.50% BEGINNING FUND BALANCE, Jan 1 6,110,390 10,811,847 10,811,847 4,701,457 - 100.00% ENDING FUND BALANCE, Sep 30 9,524,483$ 13,702,847$ 14,382,263$ 4,857,780$ 679,416$ 104.96% HOUSING & SUPPORTIVE SERVICES VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 10 of 31 Springbrook Wetlands Fund The Springbrook Wetlands Fund was established in 2007 for the purpose of providing accounting for the Springbrook Creek Wetland and Habitat Mitigation Bank project. The proceeds of selling wetlands credits will be used to fund the ongoing maintenance of the wetland in perpetuity. Sales of Credits – The decrease from prior year is due to a sale of wetland mitigation bank credits to the Seattle Sounders FC for their new development within the city received in Q2 2023. Police Seizure Fund The Police Seizure Fund was established in the 2nd quarter of 2020 for the purpose of providing transparency in the accounting for assets seized by Police in accordance with RCW 9A.83.030 and 69.50.505, previously accounted for within the General Fund. These seizure funds are restricted to use exclusively for the expansion and improvement of controlled substances related law enforcement activity. The total fund balance remaining at the end of the year is budgeted in full the following year in the supplies line item. Contributions – The contribution revenue over prior year is due to a large seizure that took place in Q2 2024. Contracted Services – The increase over prior year is due to two new contracts for forensic software and public safety cameras. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 4,011$ 4,011$ 4,132$ 120$ 120$ 103.00% Investment Earnings 12,903 - 21,449 8,546 21,449 N/A Sale of credits 247,852 - - (247,852) - N/A TOTAL REVENUES 264,766 4,011 25,581 (239,185) 21,569 637.77% EXPENDITURES: Personnel 6,281 - 3,810 2,471 (3,810) N/A Contracted Services 4,132 40,000 7,266 (3,135) 32,734 18.17% TOTAL EXPENDITURES 10,413 40,000 11,076 (664) 28,924 27.69% Transfers In - - - - - N/A NET TRANSFERS - - - - - N/A CHANGE IN FUND BALANCE 254,353 (35,989) 14,505 (239,849) 50,494 N/A BEGINNING FUND BALANCE, Jan 1 454,628 711,118 711,118 256,490 - 100.00% ENDING FUND BALANCE, Sep 30 708,981$ 675,129$ 725,623$ 16,641$ 50,494$ 107.48% SPRINGBROOK WETLANDS VARIANCE FAVORABLE (UNFAVORABLE) 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Contributions 140,389$ 393,772$ 421,850$ 281,461$ 28,078$ 107.13% Investment Earnings 8,475 - 21,201 12,726 21,201 N/A TOTAL REVENUES 148,864 393,772 443,051 294,187 49,279 112.51% EXPENDITURES: Supplies 34,901 1,125,700 12,207 (22,694) 1,113,493 1.08% Contracted Services 36,130 - 252,513 216,383 (252,513) N/A Capital Outlay 7,268 - 86,900 79,632 (86,900) N/A TOTAL EXPENDITURES 78,299 1,125,700 351,620 273,321 774,080 31.24% Transfers In - - - - - N/A NET TRANSFERS - - - - - N/A CHANGE IN FUND BALANCE 70,565 (731,928) 91,431 20,866 823,359 N/A BEGINNING FUND BALANCE, Jan 1 339,814 731,928 731,928 392,114 - 100.00% ENDING FUND BALANCE, Sep 30 410,379$ -$ 823,359$ 412,980$ 823,359$ N/A POLICE SEIZURE VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 11 of 31 Police CSAM Seizure Fund The Police CSAM Seizure Fund was established in the 2nd quarter of 2020 for the purpose of providing transparency in the accounting for assets seized by Police in accordance with RCW 9A.88.150, previously accounted for within the General Fund. These seizure funds are restricted to the exclusive use of enforcing the provisions of chapter 9A.88 RCW, Indecent Exposure-Prostitution, or chapter 9.68A RCW, Sexual Exploitation of Children. The total fund balance remaining at the end of the year is budgeted in full the following year in the contracted services line item. Affordable Housing Development Per ordinance 6137, in 2024, a new fund was created fund 150, Affordable Housing Development Fund. The city expanded its current affordable housing program under RMC‐4‐9‐065 to allow receipt of additional payment from developers who prefer to contribute financially towards the development of low-income housing rather than incorporate such housing within developments. The purpose of the fund is to provide a way to account for revenue and expenditure of said payments. Charges for Services – The amount under budget is due to a fee in lieu payment to be recorded in Q4. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Fines and penalties 587$ 1,670$ 1,670$ 1,083$ 0$ 100.00% TOTAL REVENUES 4,401 1,670 5,734 1,333 4,064 343.35% EXPENDITURES: Supplies - - 428 428 (428) N/A Contracted Services 4,588 171,247 2,235 (2,353) 169,012 1.30% Capital Outlay - - 40,278 40,278 (40,278) N/A TOTAL EXPENDITURES 4,588 171,247 42,940 38,353 128,307 25.07% Transfers In - - - - - N/A NET TRANSFERS - - - - - N/A CHANGE IN FUND BALANCE (187) (169,577) (37,206) (37,020) 132,371 N/A BEGINNING FUND BALANCE, Jan 1 172,804 169,577 169,577 (3,227) - 100.00% ENDING FUND BALANCE, Sep 30 172,617$ -$ 132,371$ (40,246)$ 132,371$ N/A POLICE CSAM SEIZURE VARIANCE FAVORABLE (UNFAVORABLE) 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services - 292,000 - - (292,000) 0.00% TOTAL REVENUES - 292,000 - - (292,000) 0.00% EXPENDITURES: TOTAL EXPENDITURES - - - - - N/A Transfers In - - - - - N/A Transfers Out - - - - - N/A NET TRANSFERS - - - - - N/A CHANGE IN FUND BALANCE - 292,000 - - (292,000) 0.00% BEGINNING FUND BALANCE, Jan 1 - - - - - N/A ENDING FUND BALANCE, Sep 30 -$ 292,000$ -$ -$ (292,000)$ 0.00% AFFORDABLE HOUSING DEVELOPMENT VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 12 of 31 Fire Impact Mitigation Fund This fund accounts for fire impact fees collected from developers as authorized under RCW 82.02.050-.110. These fees are used to offset the cost of system improvements necessary to serve the new development. The impact fee collections are subsequently disbursed to the Renton Regional Fire Authority for use on qualifying capital projects. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. Charges for Services and Contracted Services – Charges for services and contracted services are below expected budget percentage through September due to fluctuation in development. The increase in Charges for Services from prior year is due to permit revenue received in Q3 related to the LivAway Suites Renton Hotel Development project. School District Impact Mitigation This fund accounts for school district impact fees collected from developers as authorized under RCW 82.02.050‐ .110. These fees are used to help offset the cost of system improvements necessary to service the new development. Impact fees are held in this fund and subsequently transferred to the Kent, Issaquah, or Renton School District for use on qualifying capital projects. Charges for Services and Contracted Services – Charges for services and contracted services have decreased from prior year and are behind the expected budget percentage through September. The impact fee revenues are collected from developers and can significantly fluctuate year to year based on the development projects around the city. Budget is based on prior year activity and was decreased from prior year budget in correlation with lower impact fees received in the last two years. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 36,054$ 200,000$ 71,850$ 35,796$ (128,150)$ 35.93% Investment Earnings 30,951 - - (30,951) - N/A TOTAL REVENUES 67,005 200,000 71,850 4,845 (128,150) 35.93% EXPENDITURES: Contracted Services 194,986 200,000 65,620 (129,367) 134,380 32.81% TOTAL EXPENDITURES 194,986 200,000 65,620 (129,367) 134,380 32.81% Transfers In - - - - - N/A Transfers Out (2,595,376) - - 2,595,376 - N/A NET TRANSFERS (2,595,376) - - (2,595,376) - N/A CHANGE IN FUND BALANCE (2,723,357) - 6,230 2,729,587 6,230 N/A BEGINNING FUND BALANCE, Jan 1 2,724,187 - - (2,724,187) - N/A ENDING FUND BALANCE, Sep 30 830$ -$ 6,230$ 5,400$ 6,230$ N/A FIRE IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 170,507$ 600,000$ 156,112$ (14,395)$ (443,888)$ 26.02% Investment Earnings 370 - 398 28 398 N/A TOTAL REVENUES 170,877 600,000 156,510 (14,367) (443,490) 26.09% EXPENDITURES: Contracted Services 133,504 600,000 56,946 (76,558) 543,054 9.49% TOTAL EXPENDITURES 133,504 600,000 56,946 (76,558) 543,054 9.49% Transfers In - - - - - N/A NET TRANSFERS - - - - - N/A CHANGE IN FUND BALANCE 37,373 - 99,564 62,191 99,564 N/A BEGINNING FUND BALANCE, Jan 1 - 34 34 34 - 100.00% ENDING FUND BALANCE, Sep 30 37,373$ 34$ 99,598$ 62,225$ 99,564$ 292935.29% SCHOOL DISTRICT IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 13 of 31 CAPITAL PROJECT FUNDS Capital project funds are used to account for the acquisition and construction of major capital facilities and equipment. YTD budgets are not prepared for capital project funds. Project budgets are adopted when funding is secured, and balances are carried forward each year until they are either 1) fully spent or 2) reallocated to another project through the budget adjustment process. Detailed explanations will be provided for material differences between prior year and or budgeted amounts. Community Services Impact Mitigation Fund This fund accounts for park impact fees collected from developers as authorized under RCW 82.02.050-.110. These fees are used to help offset the cost of system improvements necessary to service the new development. Impact fees are held in this fund and subsequently transferred to the Municipal Facilities CIP Fund when qualifying capital projects are budgeted. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. Transportation Impact Mitigation Fund This fund accounts for transportation impact fees collected from developers as authorized under RCW 82.02.050-.110. These fees are used to offset the cost of system improvements necessary to serve the new development. Impact fees are held in this fund and subsequently transferred to the Capital Improvement Fund when qualifying projects are budgeted. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 104,037$ 86,500$ 95,017$ (9,020)$ 8,517$ 109.85% Investment Earnings 37,160 - 21,744 (15,416) 21,744 N/A TOTAL REVENUES 141,197 86,500 116,761 (24,436) 30,261 134.98% EXPENDITURES: TOTAL EXPENDITURES - - - - - N/A Transfers In - - - - - N/A Transfers Out - (525,000) - - (525,000) 0.00% NET TRANSFERS - (525,000) - - 525,000 0.00% CHANGE IN FUND BALANCE 141,197 (438,500) 116,761 (24,436) 555,261 -26.63% BEGINNING FUND BALANCE, Jan 1 1,595,389 681,333 681,333 (914,056) - 100.00% ENDING FUND BALANCE, Sep 30 1,736,586$ 242,833$ 798,094$ (938,492)$ 555,261$ 328.66% COMMUNITY SERVICES IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 523,361$ 911,152$ 1,017,231$ 493,871$ 106,079$ 111.64% Investment Earnings 163,781 - 76,869 (86,912) 76,869 N/A TOTAL REVENUES 687,142 911,152 1,094,100 406,959 182,948 120.08% EXPENDITURES: TOTAL EXPENDITURES - - - - - N/A Transfers In - - - - - N/A Transfers Out - (100,000) - - (100,000) 0.00% NET TRANSFERS - (100,000) - - (100,000) 0.00% CHANGE IN FUND BALANCE 687,142 811,152 1,094,100 406,958 282,948 N/A BEGINNING FUND BALANCE, Jan 1 6,964,011 2,220,270 2,220,270 (4,743,741) - 100.00% ENDING FUND BALANCE, Sep 30 7,651,153$ 3,031,422$ 3,314,370$ (4,336,783)$ 282,948$ 109.33% TRANSPORTATION IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 14 of 31 Charges for Services – The increase from prior year is due to permit revenue received in Q3 related to the LivAway Suites Renton Hotel Development project. REET 1 Fund This fund was established in the 2nd quarter of 2020 to account for the first quarter percent of real estate excise tax (REET) levied in accordance with RCW 82.46.010. The tax may be used for eligible capital projects, as defined in RCW.82.46.010(6), that are included in the capital facilities element of the city’s comprehensive plan. REET 1 tax revenues are held in this fund and subsequently transferred to the appropriate capital project fund when qualifying projects are budgeted. REET 2 Fund This fund was established in the 2nd quarter of 2020 to account for the second quarter percent of real estate excise tax (REET) levied in accordance with RCW 82.46.035. The tax may be used for eligible capital projects, as defined in RCW.82.46.035(5), that are included in the capital facilities element of the city’s comprehensive plan. REET 2 tax revenues are held in this fund and subsequently transferred to the appropriate capital project fund when qualifying projects are budgeted. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. REET 1 and REET 2 Taxes – The increase in taxes from prior year are due to increased real estate transactions which were at low levels in 2023 due to the high interest rate; real estate sales slowed with the higher cost to borrow money. The current year increase is also due to a the sale of a large apartment complex ($535K). As interest rates fluctuate, we may continue to see some impact on real estate excise taxes therefore; budget has been set conservatively. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 1,761,021$ 2,300,000$ 2,603,861$ 842,840$ 303,861$ 113.21% Investment Earnings 85,246 - 84,450 (796) 84,450 N/A TOTAL REVENUES 1,846,267 2,300,000 2,688,311 842,044 388,311 116.88% EXPENDITURES: TOTAL EXPENDITURES - - - - - N/A Transfers In - - - - - N/A NET TRANSFERS - - - - - N/A CHANGE IN FUND BALANCE 1,846,267 2,300,000 2,688,311 842,044 388,311 116.88% BEGINNING FUND BALANCE, Jan 1 3,049,711 1,765,153 1,765,153 (1,284,558) - 100.00% ENDING FUND BALANCE, Sep 30 4,895,978$ 4,065,153$ 4,453,464$ (442,514)$ 388,311$ 109.55% REET 1 VARIANCE FAVORABLE (UNFAVORABLE) 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 1,761,020$ 2,300,000$ 2,603,860$ 842,840$ 303,860$ 113.21% Investment Earnings 151,936 - 126,001 (25,935) 126,001 N/A TOTAL REVENUES 1,912,956 2,300,000 2,729,861 816,905 429,861 118.69% EXPENDITURES: TOTAL EXPENDITURES - - - - - N/A Transfers In - - - - - N/A Transfers Out - (4,183,425) - - (4,183,425) 0.00% NET TRANSFERS - (4,183,425) - - 4,183,425 0.00% CHANGE IN FUND BALANCE 1,912,956 (1,883,425) 2,729,861 816,905 4,613,286 -144.94% BEGINNING FUND BALANCE, Jan 1 6,019,961 3,145,503 3,145,503 (2,874,458) - 100.00% ENDING FUND BALANCE, Sep 30 7,932,917$ 1,262,078$ 5,875,364$ (2,057,553)$ 4,613,286$ 465.53% REET 2 VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 15 of 31 Municipal Facilities CIP Fund This fund accounts for general governmental facility construction, improvement, and renovation; property acquisitions for parks and city space needs; parks development and equipment; and major maintenance of existing general governmental assets. Transportation capital improvements are accounted for in a separate fund. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. Grants/intergovernmental – Federal/State/Local grant revenue varies significantly from year-to-year based on volume of grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is budgeted at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to reimbursement of grant expenditures occurring in a future year. Budgeted grant revenue not received in award year is carried forward each year until the grant funds are fully received or the grant agreement expires. The decrease from prior year is largely due to receiving grant funds for the Gene Coulon North Water Walk project ($1.3 million). Investment Earnings –Investment earnings have varied over the past couple of years as the market has seen large fluctuations in interest rates as this revenue is highly influenced by the federal funds rate. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city holds roughly 50% of the total cash and investments for the city in the LGIP. Contracted Services – Contracted services are largely project driven and are dependent on the project timeline. The amount under budget is due projects in the preliminary planning phase, such as City Hall Lobby Remodel ($3 million) and Pavilion Remodel ($7.8 million) where budget has been allocated, however construction has not yet started. Capital Outlay – Capital outlay fluctuates greatly with capital project schedules and contractor’s billings. The decrease from prior year is due to large bond projects: Kiwanis Park ($1.5 million), Philip Arnold Park Improvements ($3 million), and Coulon Park Waterwalk ($3.2 million). The amount under budget is driven by large projects in the preliminary phase: Senior Center Improvement ($1.6 million), Henry Moses Aquatic Center Improvements ($2 million), May Creek Trail South ($3.7 million), Park Maintenance Facility ($2.8 million), and Piazza Park Improvements ($1.7 million). 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 2,285,267$ 8,233,894$ 1,231,167$ (1,054,100)$ (7,002,727)$ 14.95% Contributions 3,056 - 26,457 23,401 26,457 N/A Investment Earnings 431,939 - 624,698 192,759 624,698 N/A TOTAL REVENUES 2,741,507 8,233,894 1,882,322 (859,185) (6,351,572) 22.86% EXPENDITURES: Personnel 37,997 41,000 74,414 36,417 (33,414) 181.50% Contracted Services 732,150 11,893,949 706,804 (25,346) 11,187,145 5.94% Capital Outlay 12,523,278 20,176,768 4,077,644 (8,445,634) 16,099,124 20.21% TOTAL EXPENDITURES 13,293,425 32,111,717 4,858,862 (8,434,563) 27,252,855 15.13% Transfers In - 9,837,858 - - (9,837,858) 0.00% Transfers Out (100,000) (220,422) (210,422) (110,422) (10,000) N/A NET TRANSFERS (100,000) 9,617,436 (210,422) 110,422 (9,827,858) -2.19% CHANGE IN FUND BALANCE (10,651,918) (14,260,387) (3,186,962) 7,464,956 11,073,425 22.35% BEGINNING FUND BALANCE, Jan 1 24,671,384 21,980,020 21,980,020 (2,691,364) - 100.00% ENDING FUND BALANCE, Sep 30 14,019,466$ 7,719,633$ 18,793,058$ 4,773,592$ 11,073,425$ 243.44% MUNICIPAL FACILITIES CIP VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 16 of 31 Capital Improvement Fund This fund accounts for the city’s transportation capital projects. Capital projects are budgeted in their entirety at the inception of the project; funds are spent as the project progresses and may span over multiple years. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. Taxes – Taxes collected relate to the establishment of a Renton Transportation Benefit District (TBD) increasing sales tax rate by 0.1 percent to fund the TBD under RCW 82.14.0455, effective April 1, 2024. The funding is to be used for transportation projects specifically street overlay and sidewalk repair. Grants/Intergovernmental – Federal/State/Local grant revenue varies significantly from year-to-year based on volume of grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is budgeted at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried forward each year until the grant funds are fully received or the grant agreement expires. The decrease from prior year largely relates to the timing of revenue recognition of grant revenue from the Wells & Williams project received in 2023. Contributions – The amount over prior year is due to the contribution from private contributors for the Rainier Ave Phase 4 project for the joint trench utilities. The amount under budget is due to the timing of construction projects and subsequent contributions from external parties, primarily related to the joint trench utilities for Rainier Ave Phase 4. Investment Earnings – Investment earnings have varied over the past couple of years as the market has seen large fluctuations in interest rates as this revenue is highly influenced by the federal funds rate. Capital Outlay – Increase in capital outlay expenditures from prior year is due to large ongoing projects reaching significant completion dates. Largest increase includes Rainier Phase 4 which incurred significant expenditures at the beginning of 2024 ($9.9 million). The amount under budget is driven by large projects in the early phases including: South 7th Street ($2.8 million), Rainier Phase 4 ($15 million), and SW 43rd Arterial Rehab ($6.1 million). 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes -$ 2,625,000$ 1,518,718$ 1,518,718$ (1,106,282)$ 57.86% Grants / intergovernmental 6,102,439 27,521,109 6,011,273 (91,166) (21,509,836) 21.84% Charges for services 100,087 90,225 650 (99,437) (89,575) 0.72% Contributions 211,489 6,989,978 3,114,887 2,903,398 (3,875,091) 44.56% Investment Earnings 295,436 - 445,132 149,696 445,132 N/A TOTAL REVENUES 6,709,451 37,226,312 11,090,660 4,381,209 (26,135,652) 29.79% EXPENDITURES: Personnel 24,695 28,415 71,810 47,115 (43,395) 252.72% Supplies 64,025 17,913 - (64,025) 17,913 0.00% Contracted Services 102,035 639,434 163,223 61,188 476,211 25.53% Capital Outlay 10,803,319 51,328,265 13,340,429 2,537,110 37,987,836 25.99% Internal Services 39,750 56,000 42,000 2,250 14,000 75.00% TOTAL EXPENDITURES 11,033,824 52,070,027 13,617,462 2,583,638 38,452,565 26.15% Transfers In - 3,054,000 - - (3,054,000) 0.00% Transfers Out - (18,000) - - 18,000 N/A NET TRANSFERS - 3,036,000 - - (3,072,000) 0.00% CHANGE IN FUND BALANCE (4,324,373) (11,807,715) (2,526,802) 1,797,571 9,280,913 N/A BEGINNING FUND BALANCE, Jan 1 12,561,975 15,282,117 15,282,117 2,720,142 - 100.00% ENDING FUND BALANCE, Sep 30 8,237,602$ 3,474,402$ 12,755,315$ 4,517,713$ 9,280,913$ 367.12% CAPITAL IMPROVEMENT VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 17 of 31 Family First Center Fund This fund is used to account for the construction of the new Family First Center. Although the facility is substantially complete, there still remains some final transactions to be completed in 2024. Contributions – The amount over budget is due to timing of receiving outstanding contributions related to 2023 project change orders. The decrease from prior year is due to project timeline, the project was completed in 2023 and the majority of the contributions were made at the time of construction completion. Investment Earnings – Investment earnings have varied over the past couple of years as the market has seen large fluctuations in interest rates as this revenue is highly influenced by the federal funds rate. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city holds roughly 50% of the total cash and investments for the city in the LGIP. Capital Outlay – Decrease from prior year is due to the project timeline, the project was completed in 2023 and has not incurred expenditures this year. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 20,000$ -$ -$ (20,000)$ -$ N/A Contributions 3,027,480 - 145,523 (2,881,957) 145,523 N/A Investment Earnings 61,098 - 112,081 50,983 112,081 N/A TOTAL REVENUES 3,108,578 - 257,604 (2,850,974) 257,604 N/A EXPENDITURES: Contracted Services 4,089 - - (4,089) - N/A Capital Outlay 2,805,378 - - (2,805,378) - N/A TOTAL EXPENDITURES 2,809,467 - - (2,809,467) - N/A Transfers In - - - - - N/A Transfers Out - - - - - N/A NET TRANSFERS - - - - - N/A CHANGE IN FUND BALANCE 299,111 - 257,604 (41,507) 257,604 N/A BEGINNING FUND BALANCE, Jan 1 2,795,295 3,643,436 3,643,436 848,141 - 100.00% ENDING FUND BALANCE, Sep 30 3,094,406$ 3,643,436$ 3,901,040$ 806,634$ 257,604$ 107.07% FAMILY FIRST CENTER VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 18 of 31 ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. YTD budgets are not prepared for Enterprise Funds. Most Enterprise Funds maintain two separate “management funds”, an operating fund and a capital fund. The funds are consolidated for budget/reporting purposes. Operating budgets lapse at the end of the year. Project budgets are adopted when funding is secured, and balances are carried forward each year until they are either 1) fully spent or 2) reallocated to another project through the budget adjustment process. Detailed explanations will be provided for material differences between prior year and or budgeted amounts. Airport Fund This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and maintenance of the Renton Municipal Airport. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. Grants/Intergovernmental – The increase from prior year is largely due to the receipt of an FAA grant for the Taxiway Alpha Rehabilitation project. The amount under budget is largely driven by project timing of capital projects as grant reimbursements are not paid until work has been completed. Charges for Services – The decrease from prior year is due to a one-time large payment in 2023 for a large lease agreement that was finalized and lease rate increases. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 149,837$ 1,136,896$ 803,186$ 653,349$ (333,710)$ 70.65% Charges for services 4,517,916 4,826,162 3,459,111 (1,058,805) (1,367,051) 71.67% Interest and other misc 224,739 3,857 356,201 131,462 352,344 9235.18% TOTAL REVENUES 4,892,492 5,966,915 4,618,498 (273,994) (1,348,417) 77.40% EXPENSES: Personnel 840,180 1,677,162 930,201 (90,021) 746,961 55.46% Supplies 59,735 47,630 65,759 (6,024) (18,129) 138.06% Contracted Services 419,869 482,855 537,026 (117,157) (54,171) 111.22% Internal Services 334,272 457,549 343,162 (8,890) 114,387 75.00% TOTAL OPERATING EXPENSES 1,654,056 2,665,196 1,876,148 (222,092) 789,048 70.39% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 3,238,436 3,301,719 2,742,350 (496,086) (559,369) 83.06% TOTAL DEBT SERVICE - - - - - N/A CAPITAL OUTLAY 855,241 7,464,493 1,153,182 (297,941) 6,311,311 15.45% TRANSFERS IN - 164,955 164,955 164,955 - 100.00% TRANSFERS OUT - (61,900) - - (61,900) N/A NET TRANSFERS - 103,055 164,955 164,955 61,900 160.07% CHANGE IN FUND BALANCE 2,383,195 (4,059,719) 1,754,123 (629,072) 5,813,842 N/A BEGINNING FUND BALANCE, Jan 1 8,925,690 11,276,837 11,276,837 2,351,147 - 100.00% ENDING FUND BALANCE, Sep 30 11,308,885$ 7,217,118$ 13,030,960$ 1,722,075$ 5,813,842$ 180.56% Operating Reserve 216,784 266,810 266,810 AVAILABLE FUND BALANCE 11,092,101$ 6,950,308$ 12,764,150$ VARIANCE FAVORABLE (UNFAVORABLE) AIRPORT Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 19 of 31 Interest and Other Misc. – The increase over prior year is primarily due to investment earnings. Investment earnings have varied over the past couple of years as the market has seen large fluctuations in interest rates as this revenue is highly influenced by the federal funds rate. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city holds roughly 50% of the total cash and investments for the city in the LGIP. Personnel – The amount under budget is due to current vacant position and timing of hiring the Airport Director. Contracted Services – The amount over budget is due to major maintenance and pavement management program project costs recorded as operating costs based on the nature of the project, where as the budget appropriation is recorded in the capital fund. Capital Outlay - The increase from prior year is due to the airport office rehabilitation project and the Taxiway Alpha Rehabilitation project in 2024. The amount under budget is due to several large projects, including $3.2M for Taxiway Alpha Rehabilitation. Solid Waste Fund This fund accounts for revenues and expenses for administration and operating of solid waste, recycling, and yard waste collection services for the city. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. Grants/intergovernmental – The decrease from prior year is due to timing of receiving funding, which is based on when allowable costs occur. The amount under budget is due to timing of receiving contributions from King County for the city’s participation in the Re+ initiative to minimize waste and regenerate natural systems. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 165,834$ 498,139$ 89,929$ (75,905)$ (408,210)$ 18.05% Charges for services 18,545,112 25,648,540 20,045,055 1,499,943 (5,603,485) 78.15% Interest and other misc 81,263 5,000 114,338 33,075 109,338 2286.76% TOTAL REVENUES 18,792,209 26,151,679 20,249,322 1,457,113 (5,902,357) 77.43% EXPENSES: Personnel 434,517 767,267 478,913 (44,396) 288,354 62.42% Supplies 33,144 28,100 8,846 24,298 19,254 31.48% Contracted Services 16,846,305 25,697,101 17,549,638 (703,333) 8,147,463 68.29% Internal Services 395,262 543,910 407,933 (12,671) 135,977 75.00% TOTAL OPERATING EXPENSES 17,709,228 27,036,378 18,445,330 (736,102) 8,591,048 68.22% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 1,082,981 (884,699) 1,803,992 721,011 2,688,691 N/A TOTAL DEBT SERVICE - - - - - N/A CAPITAL OUTLAY - - - - - N/A TRANSFERS IN - - - - - N/A TRANSFERS OUT - (9,185) - - (9,185) N/A NET TRANSFERS - (9,185) - - 9,185 N/A CHANGE IN FUND BALANCE 1,082,981 (893,884) 1,803,992 721,011 2,697,876 N/A BEGINNING FUND BALANCE, Jan 1 3,951,191 3,928,543 3,928,543 (22,648) - 100.00% ENDING FUND BALANCE, Sep 30 5,034,172$ 3,034,659$ 5,732,535$ 698,363$ 2,697,876$ 188.90% Operating Reserve 400,000 400,000 400,000 AVAILABLE FUND BALANCE 4,634,172$ 2,634,659$ 5,332,535$ SOLID WASTE VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 20 of 31 Interest and Other Misc. – The increase over prior year is primarily due to investment earnings. Investment earnings have varied over the past couple of years as the market has seen large fluctuations in interest rates as this revenue is highly influenced by the federal funds rate. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city holds roughly 50% of the total cash and investments for the city in the LGIP. Charges for Services and Contracted Services – Charges for services rate increased from 2023-2024 by 7.7%, the increase over prior year is at 8% in line with the rate increase. Golf Course Fund This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and maintenance of the Maplewood Golf Course. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. Charges for Services – The increase over prior year is due to higher green fees increased in 2024 and approximately a 1% increase in the number of golf rounds overall. Personnel – The increase from prior year is largely due to an increase for cost-of-living adjustments. Supplies – The amount over budget is due to purchases of supplies for the driving range, golf course maintenance, and pro shop being higher than anticipated for the year. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 2,485,933$ 3,106,080$ 2,730,167$ 244,234$ (375,913)$ 87.90% Rents, leases, and misc fees 477,327 544,675 497,677 20,350 (46,998) 91.37% Interest and other misc 47,019 1,370 74,763 27,744 73,393 5457.15% TOTAL REVENUES 3,010,279 3,652,125 3,302,607 292,328 (349,518) 90.43% EXPENSES: Personnel 1,361,251 1,925,976 1,477,508 (116,257) 448,468 76.71% Supplies 334,995 312,500 320,706 14,289 (8,206) 102.63% Contracted Services 129,368 227,200 197,967 (68,599) 29,233 87.13% Internal Services 351,250 480,398 360,299 (9,049) 120,099 75.00% TOTAL OPERATING EXPENSES 2,176,864 2,946,074 2,356,480 (179,616) 589,594 79.99% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 833,415 706,051 946,127 112,712 240,076 134.00% DEBT SERVICE: Principal 33,359 44,982 33,694 (335) 11,288 74.91% Interest 1,303 1,234 968 335 266 78.44% TOTAL DEBT SERVICE 34,662 46,216 34,662 - 11,554 75.00% CAPITAL OUTLAY 326,882 619,921 55,620 271,262 564,301 8.97% TRANSFERS IN 322,275 165,000 123,750 (198,525) (41,250) 75.00% TRANSFERS OUT (322,275) (165,000) (123,750) (198,525) (41,250) 75.00% NET TRANSFERS - - - - - N/A CHANGE IN FUND BALANCE 471,871 39,914 855,845 383,974 815,931 2144.22% BEGINNING FUND BALANCE, Jan 1 1,609,927 1,884,907 1,884,907 274,980 - 100.00% ENDING FUND BALANCE, Sep 30 2,081,798$ 1,924,821$ 2,740,752$ 658,954$ 815,931$ 142.39% Operating Reserve 641,500 764,018 764,018 AVAILABLE FUND BALANCE 1,440,298$ 1,160,803$ 1,976,734$ GOLF COURSE VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 21 of 31 Capital Outlay – Capital outlay will vary year over year based on the planned projects overall. In 2023 the focus was to replace the driving range turf, whereas, for 2024 the planned capital improvements are equipment purchase plan and golf course major maintenance. The equipment purchase plan is to replace or repair equipment that are at useful life and scheduled to be replaced over the next few years and the major maintenance is to maintain the golf course and buildings as components reach their useful life. Water Utility Fund This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and maintenance of the city’s water utility. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. Grants/Intergovernmental – Federal/State/Local grant revenue varies significantly from year-to-year based on volume of grant awards procured, timing of grant expenses, and reimbursement of related expenses. The primary driver of the decrease from prior year is the Sunset Gardens Water System Project with $846K received in 2023. Charges for Services – This account will fluctuate based on when actual payments are received for services and actual water usage The decrease from prior year is due to higher average temperatures in the summer of 2023 compared to 2024 resulting in lower water usage 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits -$ -$ 1,025$ 1,025$ 1,025$ N/A Grants / intergovernmental 846,705 625,332 121,824 (724,881) (503,508) 19.48% Charges for services 14,725,983 19,242,503 14,583,343 (142,640) (4,659,160) 75.79% Rents, leases, and misc fees 214,925 234,465 195,463 (19,462) (39,002) 83.37% Interest and other misc 1,565,122 47,000 2,512,511 947,389 2,465,511 5345.77% TOTAL REVENUES 17,352,735 20,149,300 17,414,166 61,431 (2,735,134) 86.43% EXPENSES: Personnel 3,455,647 5,536,236 3,766,940 (311,293) 1,769,296 68.04% Supplies 794,874 886,189 754,237 40,637 131,952 85.11% Contracted Services 2,519,897 3,818,869 2,505,823 14,074 1,313,046 65.62% Internal Services 2,205,428 3,017,922 2,263,441 (58,013) 754,481 75.00% TOTAL OPERATING EXPENSES 8,975,846 13,259,216 9,290,441 (314,595) 3,968,775 70.07% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 8,376,889 6,890,084 8,123,725 (253,164) 1,233,641 117.90% DEBT SERVICE: Principal 272,647 1,534,847 272,647 - 1,262,200 17.76% Interest 83,686 132,895 67,211 16,475 65,684 50.57% TOTAL DEBT SERVICE 356,333 1,667,742 339,858 16,475 1,327,884 20.38% CAPITAL OUTLAY 3,622,076 37,885,996 2,706,707 915,369 35,179,289 7.14% TRANSFERS IN - 125,000 - - (125,000) 0.00% TRANSFERS OUT (861) (127,058) - (861) (127,058) N/A NET TRANSFERS (861) (2,058) - 861 2,058 N/A CHANGE IN FUND BALANCE 4,397,619 (32,665,712) 5,077,160 679,541 37,742,872 N/A BEGINNING FUND BALANCE, Jan 1 48,208,076 52,071,465 52,071,465 3,863,389 - 100.00% ENDING FUND BALANCE, Sep 30 52,605,695$ 19,405,753$ 57,148,625$ 4,542,930$ 37,742,872$ 294.49% Restricted for Debt Service 1,394,050 1,394,050 1,394,050 Operating Reserve 1,624,606 1,775,696 1,775,696 AVAILABLE FUND BALANCE 49,587,039$ 16,236,007$ 53,978,879$ WATER UTILITY VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 22 of 31 Interest and Other Misc. – Increase over prior year is primarily due to investment earnings. Investment earnings have varied over the past couple of years as the market has seen large fluctuations in interest rates as this revenue is highly influenced by the federal funds rate. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city holds roughly 50% of the total cash and investments for the city in the LGIP. Personnel – The increase from prior year is largely due to an increase for cost-of-living adjustments and timing of filling vacant positions. Debt Principal – The amount under budget is due to timing of debt payments. The principal payments will be in Q4 of 2024. Capital Outlay – The amount under budget is due to large projects that started incurring costs but are still in the pre- construction phase: Highlands 435 reservoir replacement ($20.6 million) and watermain replacement ($7.6 million). The decrease from prior year is due to majority of work for the Rainier Ave project occurring in 2023. Wastewater Utility Fund This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and maintenance of the city’s wastewater utility. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 46,775$ 63,048$ 64,104$ 17,329$ 1,056$ 101.67% Charges for services 9,122,125 12,345,881 9,728,945 606,820 (2,616,936) 78.80% Interest and other misc 973,299 74,000 1,511,758 538,459 1,437,758 2042.92% TOTAL REVENUES 10,142,199 12,482,929 11,304,807 1,162,608 (1,178,122) 90.56% EXPENSES: Personnel 1,853,164 3,299,478 2,012,470 (159,306) 1,287,008 60.99% Supplies 118,669 74,441 62,923 55,746 11,518 84.53% Contracted Services 1,807,015 2,736,026 1,936,877 (129,862) 799,149 70.79% Internal Services 1,499,391 2,108,521 1,581,391 (82,000) 527,130 75.00% TOTAL OPERATING EXPENSES 5,278,239 8,218,466 5,593,661 (315,422) 2,624,805 68.06% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 4,863,960 4,264,463 5,711,146 847,186 1,446,683 133.92% DEBT SERVICE: Principal - 601,700 - - 601,700 0.00% Interest 36,645 59,537 29,816 6,829 29,721 50.08% TOTAL DEBT SERVICE 36,645 661,237 29,816 6,829 631,421 4.51% CAPITAL OUTLAY 1,482,583 20,503,019 3,422,604 (1,940,021) 17,080,415 16.69% TRANSFERS IN - 2,058 - - (2,058) 0.00% TRANSFERS OUT - - (1,347) 1,347 1,347 N/A NET TRANSFERS - 2,058 (1,347) (1,347) (3,405) -65.45% CHANGE IN FUND BALANCE 3,344,732 (16,897,735) 2,257,379 (1,087,353) 19,155,114 N/A BEGINNING FUND BALANCE, Jan 1 22,850,870 26,162,847 26,162,847 3,311,977 - 100.00% ENDING FUND BALANCE, Sep 30 26,195,602$ 9,265,112$ 28,420,226$ 2,224,624$ 19,155,114$ 306.74% Restricted for Debt Service 661,227 661,227 661,227 Operating Reserve 913,756 1,045,195 1,045,195 AVAILABLE FUND BALANCE 24,620,619$ 7,558,690$ 26,713,804$ WASTEWATER UTILITY VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 23 of 31 Charges for Services – The increase over prior year is due to an increase in utility rates of 4% beginning January 2024 Interest and other misc. - Increase over prior year is primarily due to investment earnings. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city holds roughly 50% of the total cash and investments for the city in the LGIP. Personnel – The increase from prior year is largely due to an increase for cost-of-living adjustments. Contracted Services – The increase over prior year is due to sewer and metro utility tax payment to the general fund driven by utility billings to customers. As utility usage fluctuates, we expect to see similar changes in utility taxes. Debt Principal – The amount under budget is due to timing of debt payments. The principal payments will be in Q4 of 2024. Capital Outlay – The increase over prior year is primarily due to the work on the Thunder Hills Interceptor ($1.2M) project in 2024. The amount under budget is largely driven by projects in preliminary phases including Lift Station Rehabilitation ($6M), and Downtown Sewer Replacement/Rehabilitation ($5.5M). King County Metro Fund This fund accounts for revenues and expenses for operation of the city’s wastewater utility, as it relates to charges for and payment to King County Metro for water treatment services. Charges for Services and Contracted Services – Increase from prior year is largely due the increase in King County fees which is passed through to wastewater customers. Fees from King County increased approximately 5% in 2024. Interest and other misc. - Increase over prior year is primarily due to investment earnings. Investment earnings have varied over the past couple of years as the market has seen large fluctuations in interest rates as this revenue is highly influenced by the federal funds rate. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 15,358,840$ 21,791,462$ 16,690,224$ 1,331,384$ (5,101,238)$ 76.59% Interest and other misc 139,287 - 202,902 63,615 202,902 N/A TOTAL REVENUES 15,498,127 21,791,462 16,893,126 1,394,999 (4,898,336) 77.52% EXPENSES: Contracted Services 15,214,987 22,191,462 15,955,440 (740,453) 6,236,022 71.90% TOTAL OPERATING EXPENSES 15,214,987 22,191,462 15,955,440 (740,453) 6,236,022 71.90% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 283,140 (400,000) 937,686 654,546 1,337,686 N/A TOTAL DEBT SERVICE - - - - - N/A CAPITAL OUTLAY - - - - - N/A NET TRANSFERS - - - - - N/A CHANGE IN FUND BALANCE 283,140 (400,000) 937,686 654,546 1,337,686 N/A BEGINNING FUND BALANCE, Jan 1 6,237,142 6,589,443 6,589,443 352,301 - 100.00% ENDING FUND BALANCE, Sep 30 6,520,282$ 6,189,443$ 7,527,129$ 1,006,847$ 1,337,686$ 121.61% Operating Reserve 380,000 380,000 380,000 AVAILABLE FUND BALANCE 6,140,282$ 5,809,443$ 7,147,129$ KING COUNTY METRO VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 24 of 31 Surface Water Utility Fund This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and maintenance of the city’s surface water utility. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. Grants/Intergovernmental – Federal/State/Local grant revenue varies significantly from year-to-year based on volume of grant awards procured, timing of grant expenses, and reimbursement of related expenses. The primary driver of the increase over prior year is the Monroe Ave NE and N 2nd St Project with $4.2 million received in 2024. Interest and other misc. - The amount over budget is primarily due budgeting conservatively for investment earnings, which have varied over the past couple of years as the market has seen large fluctuations in interest rates. Contracted Services – The amount under budget is due to delay in work for the Cedar River gravel removal repairs ($2.2 million) and the Rolling Hills Creek system improvement ($600K). Debt Principal – The amount under budget is due to timing of debt payments. The remaining principal payments will be in Q4 of 2024. Capital Outlay – Increase from 2023 is primarily due to the Monroe Ave NE and N 2nd St. Infiltration System Project which expended $11.2 million through Q3 of 2024. The amount under budget is largely driven by projects in preliminary phases including Cedar River 205 Levee Recertification (3.8M), SE 172nd St/125th Ave SE ($4.8M), Burnett Ave S/Williams Ave S ($3.8M), and Windsor Hills Storm System Improvement ($3.4M). 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 17,250$ 51,473$ 15,000$ (2,250)$ (36,473)$ 29.14% Grants / intergovernmental 2,407,288 25,017,798 5,199,654 2,792,366 (19,818,144) 20.78% Charges for services 10,079,777 13,620,366 10,175,312 95,535 (3,445,054) 74.71% Interest and other misc 737,337 61,500 806,240 68,903 744,740 1310.96% TOTAL REVENUES 13,241,652 38,751,137 16,196,206 2,954,554 (22,554,931) 41.80% EXPENSES: Personnel 2,951,845 4,904,121 3,033,716 (81,871) 1,870,405 61.86% Supplies 95,964 174,650 67,464 28,500 107,186 38.63% Contracted Services 1,292,534 4,749,671 1,301,487 (8,953) 3,448,184 27.40% Internal Services 2,242,290 3,044,597 2,283,448 (41,158) 761,149 75.00% TOTAL OPERATING EXPENSES 6,582,633 12,873,039 6,686,115 (103,482) 6,186,924 51.94% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 6,659,019 25,878,098 9,510,091 2,851,072 (16,368,007) 36.75% DEBT SERVICE: Principal - 681,100 - - 681,100 0.00% Interest 45,222 73,424 36,772 8,450 36,652 50.08% TOTAL DEBT SERVICE 45,222 754,524 36,772 8,450 717,752 4.87% CAPITAL OUTLAY 1,297,578 41,381,679 12,604,058 (11,306,480) 28,777,621 30.46% Transfers Out - (201,590) 229 (229) (201,819) N/A NET TRANSFERS - (201,590) 229 229 201,819 N/A CHANGE IN FUND BALANCE 5,316,219 (16,459,695) (3,130,510) (8,446,729) 13,329,185 N/A BEGINNING FUND BALANCE, Jan 1 28,314,755 29,287,066 29,287,066 972,311 - 100.00% ENDING FUND BALANCE, Sep 30 33,630,974$ 12,827,371$ 26,156,556$ (7,474,418)$ 13,329,185$ 203.91% Restricted for Debt Service 754,868 754,868 754,868 Operating Reserve 1,109,340 1,330,313 1,330,313 AVAILABLE FUND BALANCE 31,766,766$ 10,742,190$ 24,071,375$ SURFACE WATER UTILITY VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 25 of 31 INTERNAL SERVICE FUNDS Internal service funds are used to account for the goods and services furnished by one city department to other city departments on a cost reimbursement basis. YTD budgets are not prepared for Internal Service Funds. Equipment Rental Fund This fund accounts for revenues and expenses for administration, purchase, and maintenance of the city’s vehicle and equipment fleet services. Departments pay in monthly amounts for maintenance and operations. Replacement reserves are paid monthly over the estimated useful lives of each individual vehicle or piece of equipment. These reserves are accumulated in fund balance so that they are available to fund the replacement of the vehicle/equipment when the time comes. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. Interest and other misc. - Increase over prior year is primarily due to investment earnings. Investment earnings have varied over the past couple of years as the market has seen large fluctuations in interest rates as this revenue is highly influenced by the federal funds rate. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city holds roughly 50% of the total cash and investments for the city in the LGIP. Supplies –Decrease from prior year is largely due fuel costs which were significantly higher in 2023 due to market pricing. Contract Services – Increase over budget and prior year due to higher than anticipated repair and maintenance costs, mainly due to accident repairs. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 51,539$ -$ 36,256$ (15,283)$ 36,256$ N/A Interdepartmental services 4,926,881 6,394,449 4,903,355 (23,526) (1,491,094) 76.68% Interest and other misc 337,441 12,000 797,290 459,849 785,290 6644.08% TOTAL REVENUES 5,315,861 6,406,449 5,736,901 421,040 (669,548) 89.55% EXPENSES: Personnel 843,117 1,413,138 898,894 (55,777) 514,244 63.61% Supplies 1,264,765 1,531,153 1,136,658 128,107 394,495 74.24% Contracted Services 291,899 533,166 432,923 (141,024) 100,243 81.20% Internal Services 98,522 135,269 101,452 (2,930) 33,817 75.00% TOTAL OPERATING EXPENSES 2,498,303 3,612,726 2,569,927 (71,624) 1,042,799 71.14% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 2,817,558 2,793,723 3,166,974 349,416 373,251 113.36% TOTAL DEBT SERVICE - - - - - N/A CAPITAL OUTLAY 2,158,516 8,834,111 1,909,361 249,155 6,924,750 21.61% TRANSFERS IN - 722,372 - - (722,372) 0.00% NET TRANSFERS - 722,372 - - (722,372) 0.00% CHANGE IN FUND BALANCE 659,042 (5,318,016) 1,257,613 598,571 6,575,629 N/A BEGINNING FUND BALANCE, Jan 1 13,277,635 18,278,075 18,278,075 5,000,440 - 100.00% ENDING FUND BALANCE, Sep 30 13,936,677$ 12,960,059$ 19,535,688$ 5,599,011$ 6,575,629$ 150.74% Operating Reserves 12,995,059 12,995,059 AVAILABLE FUND BALANCE 13,936,677$ (35,000)$ 6,540,629$ EQUIPMENT RENTAL VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 26 of 31 Capital Outlay – Vehicles purchased by manufacturers or dealerships are paid upon receiving. The amount under budget is due to a delay of receiving the vehicle after being ordered. Insurance Fund This fund accounts for the administration and operation of the city’s self-insurance programs for property losses, liability, workers’ compensation, and unemployment compensation. Expenses are paid by the Insurance Fund and rates are charged to departments based on their claims history over the preceding five years and coverage requirements. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. Interdepartmental services – The increase over prior year is due to overall expense increase that are covered through interdepartmental revenues. Interest and other misc. - Increase over prior year is primarily due to investment earnings. Investment earnings have varied over the past couple of years as the market has seen large fluctuations in interest rates as this revenue is highly influenced by the federal funds rate. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city holds roughly 50% of the total cash and investments for the city in the LGIP. Personnel – The decrease from prior year and amount under budget is primarily due to the vacant HRRM Administrator position. Contracted Services – The amount over prior year is primarily due to an increase in market prices for liability insurance premiums for 2024. The amount under budget is primarily due to less than anticipated claims costs through September. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 3,506,247$ 4,881,805$ 3,656,191$ 149,944$ (1,225,614)$ 74.89% Interest and other misc 722,298 200,000 837,290 114,992 637,290 418.65% TOTAL REVENUES 4,228,545 5,081,805 4,493,481 264,936 (588,324) 88.42% EXPENSES: Personnel 1,063,583 2,139,047 953,786 109,797 1,185,261 44.59% Supplies - 6,956 552 (552) 6,404 7.94% Contracted Services 2,579,996 5,063,189 3,280,725 (700,729) 1,782,464 64.80% TOTAL OPERATING EXPENSES 3,643,579 7,209,192 4,235,063 (591,484) 2,974,129 58.75% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 584,966 (2,127,387) 258,418 (326,548) 2,385,805 N/A TOTAL DEBT SERVICE - - - - - N/A CAPITAL OUTLAY - - - - - N/A Transfers In - 1,578,243 - - (1,578,243) 0.00% Transfers Out (54,366) (950,000) - (54,366) (950,000) N/A NET TRANSFERS (54,366) 628,243 - 54,366 (628,243) 0.00% CHANGE IN FUND BALANCE 530,600 (1,499,144) 258,418 (272,182) 1,757,562 N/A BEGINNING FUND BALANCE, Jan 1 23,221,020 24,691,220 24,691,220 1,470,200 - 100.00% ENDING FUND BALANCE, Sep 30 23,751,620$ 23,192,076$ 24,949,638$ 1,198,018$ 1,757,562$ 107.58% Operating Reserves 13,952,413 20,147,927 20,147,927 AVAILABLE FUND BALANCE 9,799,207$ 3,044,149$ 4,801,711$ INSURANCE VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 27 of 31 Information Technology Fund This fund accounts for the administration, purchase, and operation of the city’s information technology systems, including computer hardware and software, network servers and infrastructure, phone systems, and cell phones. Expenses are paid by the Information Technology Fund and rates are charged to departments based on use. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. Interest and other misc. - Increase over prior year is primarily due to investment earnings. Investment earnings have varied over the past couple of years as the market has seen large fluctuations in interest rates as this revenue is highly influenced by the federal funds rate. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city holds roughly 50% of the total cash and investments for the city in the LGIP. Interdepartmental services – The increase over prior year is due to overall expense increase that are covered through interdepartmental revenues. Personnel – The increase from prior year is largely due to an increase for cost-of-living adjustments. The amount under budget is due to open positions or a personnel election of benefits. Supplies – The amount under budget is mainly due to an annual goods and service payment with Axon for the Police Department. The payment is made in Q4. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 164,862$ 250,000$ 168,201$ 3,339$ (81,799)$ 67.28% Grants / intergovernmental - 105,000 28,181 28,181 (76,819) 26.84% Interdepartmental services 5,516,696 7,537,436 5,653,079 136,383 (1,884,357) 75.00% Interest and other misc 184,842 7,000 249,975 65,133 242,975 3571.07% TOTAL REVENUES 5,866,400 7,899,436 6,099,436 233,036 (1,800,000) 77.21% EXPENSES: Personnel 2,453,862 4,133,004 2,693,955 (240,093) 1,439,049 65.18% Supplies 343,444 1,577,391 423,194 (79,750) 1,154,197 26.83% Contracted Services 2,494,590 3,974,965 2,438,914 55,676 1,536,051 61.36% Internal Services 4,903 6,696 5,022 (119) 1,674 75.00% TOTAL OPERATING EXPENSES 5,296,799 9,692,056 5,561,085 (264,286) 4,130,971 57.38% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 569,601 (1,792,620) 538,351 (31,250) 2,330,971 N/A TOTAL DEBT SERVICE - - - - - N/A CAPITAL OUTLAY 976,868 5,282,692 969,724 7,144 4,312,968 18.36% TRANSFERS IN 76,858 1,706,379 2,512 (74,346) (1,703,867) 0.15% TRANSFERS OUT - (40,888) - - (40,888) N/A NET TRANSFERS 76,858 1,665,491 2,512 (74,346) (1,662,979) 0.15% CHANGE IN FUND BALANCE (330,409) (5,409,821) (428,861) (98,452) 4,980,960 N/A BEGINNING FUND BALANCE, Jan 1 9,021,343 9,416,600 9,416,600 395,257 - 100.00% ENDING FUND BALANCE, Sep 30 8,690,934$ 4,006,779$ 8,987,739$ 296,805$ 4,980,960$ 224.31% Operating Reserves 2,551,999 2,551,999 AVAILABLE FUND BALANCE 8,690,934$ 1,454,780$ 6,864,601$ INFORMATION TECHNOLOGY VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 28 of 31 Capital Outlay – The amount under budget is due to the ERP system replacement project ($2.9 million) currently in the preliminary phase. Facilities Fund This fund accounts for the administration, maintenance, and operation of city-owned facilities. Expenses are paid by the Facilities Fund and rates are charged to departments based on square footage. Budgeted transfers are typically recorded annually in December, therefore, throughout the year transfers may show variances between current year budget and actuals. Interdepartmental services – The increase over prior year is due to overall expense increase that are covered through interdepartmental revenues. Personnel – The increase from prior year is largely due to an increase for cost-of-living adjustments. The amount under budget is due to open positions or a personnel election of benefits. Supplies and Contracted Services- The decrease in supplies and contracted services from prior year due to large city hall and remote location projects that took place in 2023, specifically the purchasing of office furniture for those locations, citywide security system upgrades, and lower utility costs. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 5,184,490$ 7,127,634$ 5,413,745$ 229,255$ (1,713,889)$ 75.95% Interest and other misc 10,339 4,000 26,045 15,706 22,045 651.13% TOTAL REVENUES 5,194,829 7,131,634 5,439,790 244,961 (1,691,844) 76.28% EXPENSES: Personnel 2,729,879 4,520,618 2,942,660 (212,781) 1,577,958 65.09% Supplies 774,911 465,396 434,110 340,801 31,286 93.28% Contracted Services 1,418,706 2,099,233 1,276,721 141,985 822,512 60.82% Internal Services 204,815 279,399 209,549 (4,734) 69,850 75.00% TOTAL OPERATING EXPENSES 5,128,311 7,364,646 4,863,040 265,271 2,501,606 66.03% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 66,518 (233,012) 576,750 510,232 809,762 N/A TOTAL DEBT SERVICE - - - - - N/A CAPITAL OUTLAY 27,003 - 1,065 25,938 (1,065) N/A Transfers In 100,000 184,605 - (100,000) (184,605) 0.00% NET TRANSFERS 100,000 184,605 - (100,000) (184,605) 0.00% CHANGE IN FUND BALANCE 139,515 (48,407) 575,685 436,170 624,092 N/A BEGINNING FUND BALANCE, Jan 1 937,922 1,046,533 1,046,533 108,611 - 100.00% ENDING FUND BALANCE, Sep 30 1,077,437$ 998,126$ 1,622,218$ 544,781$ 624,092$ 162.53% FACILITIES VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 29 of 31 Communications Fund This fund accounts for community and intergovernmental relations and communications with the public. Communications is a major activity of the city’s administration responsible for external communications, employee communications, media relations, and coordination of all departments in producing the city’s website. Expenses are paid by the Communications Fund and rates are charged to departments based on usage. Personnel – The increase from prior year is largely due to an increase for cost-of-living adjustments and timing of filling vacant positions. The amount under budget is due to open positions or a personnel election of benefits. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 1,194,251$ 1,663,767$ 1,247,825$ 53,574$ (415,942)$ 75.00% Interest and other misc 8,399 1,000 17,907 9,508 16,907 1790.70% TOTAL REVENUES 1,202,650 1,664,767 1,265,732 63,082 (399,035) 76.03% EXPENSES: Personnel 717,842 1,412,860 842,251 (124,409) 570,609 59.61% Supplies 35,366 55,432 29,896 5,470 25,536 53.93% Contracted Services 223,181 346,912 269,513 (46,332) 77,399 77.69% Internal Services 3,522 4,811 3,608 (86) 1,203 74.99% TOTAL OPERATING EXPENSES 979,911 1,820,015 1,145,268 (165,357) 674,747 62.93% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 222,739 (155,248) 120,464 (102,275) 275,712 N/A TOTAL DEBT SERVICE - - - - - N/A CAPITAL OUTLAY 46,651 - - 46,651 - N/A Transfers In - - - - - N/A Transfers Out - (2,445) - - (2,445) N/A NET TRANSFERS - (2,445) - - 2,445 N/A CHANGE IN FUND BALANCE 176,088 (157,693) 120,464 (55,624) 278,157 N/A BEGINNING FUND BALANCE, Jan 1 428,724 641,437 641,437 212,713 - 100.00% ENDING FUND BALANCE, Sep 30 604,812$ 483,744$ 761,901$ 157,089$ 278,157$ 157.50% COMMUNICATIONS VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 30 of 31 Health Insurance Fund This fund accounts for the city’s self-insured health insurance program. Expenses/claims are paid by the Health Insurance Fund and rates are charged to employees and departments based on annual premiums determined by the city’s Employee Health Plan Board for each type of coverage elected by the employee; paid semi-monthly in conjunction with each payroll. Premiums – The increase in premiums from prior year is due to an increase of rates by approximately 2% as well as the filling of vacant positions during the year. Budget is based on all approved FTEs therefore, with open positions it is reasonable the revenue is below current budget. Interest and Other Misc. – Increase over prior year is primarily due to investment earnings. Investment earnings have varied over the past couple of years as the market has seen large fluctuations in interest rates as this revenue is highly influenced by the federal funds rate. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city holds roughly 50% of the total cash and investments for the city in the LGIP. Personnel –The amount under budget is primarily due to the vacant HRRM Administrator position. Medical/Dental Claims – Medical and dental claims are based on staff utilizing city healthcare benefits and cost of medical claims. The claim costs can fluctuate from year to year . The budget and rate is set based on actuarial projecttions taking into account the city’s past claims average and the regional market average claims. The increase from prior year is due to increased medical costs and fewer vacancies across the city. The amount over budget is due to lower than anticipated usage of healthcare benefits by city staff. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Premiums 9,949,570$ 16,842,018$ 10,375,020$ 425,450$ (6,466,998)$ 61.60% Interest and other misc 582,204 520,000 821,451 239,247 301,451 157.97% TOTAL REVENUES 10,531,774 17,362,018 11,196,471 664,697 (6,165,547) 64.49% EXPENSES: Personnel 241,713 363,295 231,771 9,942 131,524 63.80% Medical/Dental Claims 8,723,103 15,328,221 9,245,705 (522,602) 6,082,516 60.32% Supplies 2,640 7,500 3,269 (629) 4,231 43.59% Contracted Services 373,024 589,819 417,693 (44,669) 172,126 70.82% Internal Services 77,814 114,058 85,544 (7,730) 28,514 75.00% TOTAL OPERATING EXPENSES 9,418,294 16,402,893 9,983,982 (565,688) 6,418,911 60.87% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 1,113,480 959,125 1,212,489 99,009 253,364 126.42% TOTAL DEBT SERVICE - - - - - N/A CAPITAL OUTLAY - - - - - N/A NET TRANSFERS - - - - - N/A CHANGE IN FUND BALANCE 1,113,480 959,125 1,212,489 99,009 253,364 126.42% BEGINNING FUND BALANCE, Jan 1 6,935,644 8,946,970 8,946,970 2,011,326 - 100.00% ENDING FUND BALANCE, Sep 30 8,049,124$ 9,906,095$ 10,159,459$ 2,110,335$ 253,364$ 102.56% Insurance Reserves 3,774,249 4,920,868 4,920,868 AVAILABLE FUND BALANCE 4,274,875$ 4,985,227$ 5,238,591$ HEALTH INSURANCE VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 3rd Quarter 2024 Page 31 of 31 Retiree Healthcare Fund This fund accounts for the city’s self-insured health insurance program for LEOFF1 retirees. Benefits include medical, prescription drug, Medicare Part B premiums, long-term care, and vision coverage for retired law enforcement officers and firefighters that were employed by the city prior to October 1, 1977. Dependent spouses and children are not covered. 100% of premiums are provided by the General Fund with annual contributions determined after review of a report prepared by actuaries. Grants/Intergovernmental – Increase relates to recording the receipt of property tax revenues received by the city to help fund retiree pension and healthcare to the retiree healthcare fund as based on actuarial projection this fund is still under funded overall. Premiums – The annual funding by the general fund was reduced in 2024 with the addition of the property tax now helping to fund these costs. Interest and Other Misc. – Increase over prior year is primarily due to investment earnings. Investment earnings have varied over the past couple of years as the market has seen large fluctuations in interest rates as this revenue is highly influenced by the federal funds rate. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city holds roughly 50% of the total cash and investments for the city in the LGIP. Medical/Dental Claims – Medical and dental claims are based on actual medical costs incurred and may vary year to year. In 2024 the overall increase is related to more retirees needing long term care benefits. This cost alone increased 35%. CONTACT INFORMATION This report is prepared by the Finance Department. For additional financial information, please also review our website: http://www.rentonwa.gov/. For any questions about the report, please feel free to contact Nate Malone at nmalone@rentonwa.gov or Kristin Trivelas ktrivelas@rentonwa.gov. 2023 2024 2024 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental -$ 220,000$ 208,793$ 208,793$ (11,207)$ 94.91% Premiums 1,368,750 570,000 427,500 (941,250) (142,500) 75.00% Interest and other misc 586,897 170,000 777,121 190,224 607,121 457.13% TOTAL REVENUES 1,955,647 960,000 1,413,414 (542,233) 453,414 147.23% EXPENSES: Personnel 74,280 110,883 75,450 (1,170) 35,433 68.04% Medical/Dental Claims 917,401 1,798,025 960,873 (43,472) 837,152 53.44% Contracted Services 72,896 119,979 37,846 35,050 82,133 31.54% TOTAL OPERATING EXPENSES 1,064,577 2,028,887 1,074,169 (9,592) 954,718 52.94% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 891,070 (1,068,887) 339,245 (551,825) 1,408,132 N/A TOTAL DEBT SERVICE - - - - - N/A CAPITAL OUTLAY - - - - - N/A NET TRANSFERS - - - - - N/A CHANGE IN FUND BALANCE 891,070 (1,068,887) 339,245 (551,825) 1,408,132 N/A BEGINNING FUND BALANCE, Jan 1 19,928,792 20,320,818 20,320,818 392,026 - 100.00% ENDING FUND BALANCE, Sep 30 20,819,862$ 19,251,931$ 20,660,063$ (159,799)$ 1,408,132$ 107.31% Insurance Reserves 20,819,862 19,251,931 20,660,063 AVAILABLE FUND BALANCE -$ -$ -$ RETIREE HEALTHCARE VARIANCE FAVORABLE (UNFAVORABLE)