Loading...
HomeMy WebLinkAboutQUARTER 4 2025Page 1 of 29 OVERVIEW This quarterly financial report reflects the city’s revenue and expenditures/expenses for the fiscal year through December 31, 2025. A detailed analysis, including current to prior year and budget to actual comparison, is included for each city fund. This report excludes 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 6172, which includes the mid- biennium and 3rd quarter budget adjustment approved November 3, 2025. 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 117,053,047$ 117,890,000$ 121,491,806$ 4,438,759$ 3,601,806$ 103.06% Licenses & Permits 6,589,771 6,265,000 7,000,929 411,158$ 735,929 111.75% Intergovernmental 7,887,397 5,378,383 4,728,983 (3,158,414)$ (649,400) 87.93% Charges for Services 11,654,429 11,590,028 12,828,497 1,174,068$ 1,238,469 110.69% Fines and Penalties 3,894,478 2,715,000 3,270,181 (624,297)$ 555,181 120.45% Miscellaneous 8,111,157 5,855,877 7,487,961 (623,196)$ 1,632,084 127.87% Other Financing Sources (Transfer-In, etc) 1,079,153 1,598,911 1,719,235 640,082$ 120,324 107.53% TOTAL REVENUES 156,269,432 151,293,199 158,527,592 2,258,160 7,234,393 104.78% EXPENDITURESCity Attorney 3,221,172 3,901,862 3,490,990 (269,818) 410,872 89.47% Community and Economic Development 13,311,219 15,811,554 13,850,692 (539,473) 1,960,862 87.60% Council 749,239 862,719 809,249 (60,010) 53,470 93.80% Court Services 3,359,803 4,069,308 3,268,248 91,555 801,060 80.31% Executive Services 6,341,621 8,756,904 8,072,660 (1,731,039) 684,244 92.19% Finance 5,262,374 6,418,396 5,705,605 (443,231) 712,791 88.89% Human Resources 1,735,270 2,685,331 2,214,346 (479,076) 470,985 82.46% Parks and Recreation 20,174,697 21,472,583 19,565,607 609,090 1,906,976 91.12% Police 52,991,390 55,567,440 55,925,743 (2,934,353) (358,303) 100.64% Public Works 17,299,520 19,471,800 17,932,598 (633,078) 1,539,202 92.10% Other Non-Departmental 15,081,374 29,631,255 26,308,860 (11,227,486) 3,322,395 88.79% TOTAL EXPENDITURES 139,527,679 168,649,152 157,144,598 (17,616,919) 11,504,554 93.18% Change in Fund Balance 16,741,753 (17,355,953) 1,382,994 Beginning Fund Balance 99,226,475 115,968,225 115,968,225 - ENDING FUND BALANCE 115,968,228$ 98,612,272$ 117,351,219$ -$ -$ Operating Reserve 17,346,914 20,237,899 20,237,899 Economic Development Reserve 2,500,000 2,500,000 2,500,000 AVAILABLE FUND BALANCE 96,121,314$ 75,874,373$ 94,613,320$ Favorable (Unfavorable) 2024 2025 Variance YTD Actual Annual Budget YTD Actual Summary of Sources and Uses Quarterly Financial Report 4th Quarter 2025 Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 2 of 29 GENERAL FUND REVENUES The following tables provide a more detailed summary of each revenue category within the General Fund. All variances are shown in a favorable/(unfavorable) format. TAXES Taxes ended the year above budget approximately $3.6 million largely due to the larger than anticipated collections relating to business taxes. Although some tax categories are lower than the prior year figure, a slight decrease in tax collections was expected when setting the budget due to concerns over the economy. Local Retail Sales Tax – The sales tax receipts rebounded in the second half of the year resulting in a net decrease of .3% for the year. Retail sales, which account for 24% of the total taxes collected, are lagging prior year’s figures by 1.9%. New construction, which accounts for 13% of this tax category, typically fluctuates year over year, is lower than prior year by 10%. These decreases were offset by a strong increase from the service industry and automobile sales at 6.6% and 1.9% respectively over prior year which combined account for almost half of the overall tax collections. Utility Tax – The increase in utility tax is most notably from an increase in electricity utility tax at an increase of 16% over prior year, although this category includes all utilities including city water utilities, garbage, cable and phone. The increase in utility tax from electricity has been trending higher each year due to higher rates and customer usage. Gambling Excise Tax –Current year revenue is trending lower than in prior year due to the closure of a large gambling establishment in early 2025. Expected annual decrease due to this closure will be an overall reduction of $650K per year, however because gambling tax can fluctuate so much based on the economy and overall consumer spend, budget was established lower than previous years with expected economic downturn. Business and Occupation (B&O) Tax – The B&O tax structure was changed several years ago with a tiered increase annually for the maximum amount any one taxpayer would pay yearly. For 2025, the maximum tax cap was removed and instead created a tiered rate of a 75% reduction for all taxes due over the $12M tax base. B&O tax revenues would typically trend similar to retail sales tax, however with the good mix of both retail, service and manufacturing businesses in the city, the B&O tax has continued to increase year over year at a steady pace. Another contributing factor for taxes higher than projected is due to ongoing tax audits which account for over $1M in current year tax revenues. 2024 2025 2025 Actual Budget Actual $ % $ % Property Tax 25,561,873 26,500,000 26,059,235 497,362 1.9%(440,765) -1.7% Local Retail Sales Tax 38,175,542 37,000,000 38,074,397 (101,145) -0.3%1,074,397 2.9% State Sales Tax Credit 723,465 740,000 730,284 6,819 0.9%(9,716) -1.3% Criminal Justice Sales Tax 3,859,078 3,600,000 3,920,142 61,064 1.6% 320,142 8.9% Natural Gas Use Tax 226,923 200,000 199,340 (27,583) -12.2% (660) -0.3% Admission Tax 1,053,211 1,000,000 1,005,670 (47,541) -4.5%5,670 0.6% Utility Tax 19,175,575 20,200,000 20,878,076 1,702,501 8.9% 678,076 3.4% Leasehold Excise Tax 241,451 250,000 241,281 (170) -0.1% (8,719) -3.5% Gambling Excise Tax 4,416,922 3,400,000 4,212,102 (204,820) -4.6%812,102 23.9% B&O Tax 23,619,007 25,000,000 26,171,279 2,552,272 10.8% 1,171,279 4.7% YTD Total 117,053,047$ 117,890,000$ 121,491,806$ 4,438,759$ 3.8% 3,601,806$ 3.1% Taxes by Type Revenue 2025 vs. 2024 2025 vs. Budget Year to Date through December Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 3 of 29 LICENSES & PERMITS Business Licenses – The increased outreach by the city and ongoing efforts to identify and contact unregistered businesses has been the catalyst for the increase in business licenses. The number of registered businesses increased approximately 10% through our ongoing outreach. Building Permits – Building permits are collected upon permit issuance. The increase from prior year is related to several permits issued for large projects such as Winco Foods, Tesla Collision Center and Hazen High School. Permits had seen a decrease in 2023 with a steady recovery the past few years. As the interest rates continue to go down, the expectation is for the investment in housing and construction sectors to grow. INTERGOVERNMENTAL State Shared Revenue – State shared revenue is comprised on various taxes collected by the state and then passed onto the city. Below is a summary of the individual taxes received. This year, the city received additional taxes for criminal justice which is distributed to certain cities with increased crime rates and population. The other notable trends are the fuel tax continues to trend lower each year as more electric cars on the road not contributing to this tax, the state shared distribution of marijuana and liquor taxes have also decreased from prior year figures as marijuana sales have continued to decline since 2021 and the liquor tax had a mid-year adjustment by the state to correct a prior distribution. 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 from prior year is largely due to recognizing the remaining ARPA grant funds of $2.6M in Q1 of 2024. 2024 2025 2025 Actual Budget Actual $ % $ % Franchise Fees 1,240,181 1,300,000 1,272,838 32,657 2.6%(27,161) -2.1% Business Licenses 1,160,753 1,200,000 1,333,989 173,236 14.9% 133,989 11.2% Animal Licenses 55,300 60,000 48,770 (6,530) -11.8% (11,230) -18.7% Building Permits 4,096,766 3,670,000 4,319,016 222,250 5.4% 649,016 17.7% ROW/Street Excavation Permits 36,005 35,000 25,890 (10,115) -28.1% (9,110) -26.0% Special Event Permits 765 - 425 (340) -44.4%425 100.0% YTD Total 6,589,771$ 6,265,000$ 7,000,929$ 411,158$ 6.2% 735,930$ 11.7% Year to Date through December Revenue 2025 vs. 2024 2025 vs. Budget Licenses & Permits by Type 2024 2025 2025 Actual Budget Actual $ % $ % State Shared Revenue 4,221,556 3,985,000$ 4,054,916 (166,640)$ -3.9%69,916$ 1.8% Federal Grants 2,854,037 413,034 215,341 (2,638,696) -92.5% (197,693) -47.9% State Grants 679,495 697,297 355,187 (324,308) -47.7% (342,110) -49.1% Local Grants 132,309 283,052 103,539 (28,770) -21.7% (179,513) -63.4% YTD Total 7,887,397$ 5,378,383$ 4,728,983$ (3,158,414)$ -40.0% (649,400)$ -12.1% Intergovernmental by Type Revenue 2025 vs. 2024 2025 vs. Budget Year to Date through December 2024 2025 2025 Tax by Type YTD Actual YTD Budget YTD Actual $ % $ % Judicial Contribution 44,784$ 50,000$ 44,780$ (4)$ N/A (5,220)$ -10.4% Crim Just - High Crime 182,245 - 180,365 (1,880) N/A 180,365 100.0% Crim Just - Pop 41,240 25,000 43,831 2,591 6.3%18,831 75.3% Crim Just - Spec Prog 144,893 100,000 153,401 8,508 5.9%53,401 53.4% WASPC Legislative 41,666 - - (41,666) N/A - N/A State DUI 10,504 10,000 10,718 214 2.0%718 7.2% Marijuana Distribution 289,048 250,000 256,884 (32,164) -11.1%6,884 2.8% Liquor Profits 814,531 800,000 811,139 (3,392) -0.4%11,139 1.4% Liquor Excise Tax 742,760 750,000 707,319 (35,441) 95.2%(42,681) -5.7% Fuel Tax 1,909,885 2,000,000 1,846,479 (63,406) -3.3%(153,521) -7.7% YTD Total 4,221,556$ 3,985,000$ 4,054,916$ (166,640)$ -4.0%69,916$ 1.8% 2025 vs. 2024 2025 vs. Budget Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 4 of 29 CHARGES FOR SERVICES Court Services – The decline in revenues for court services are largely due to a change in accounting for when revenue is recognized on funds received for bail bonds. Bonds are recognized as revenue when the court orders bail or bond to be forfeited instead of when paid. Public Safety Services – The higher-than-budgeted revenue in public safety services is primarily attributable to a one time increase for private security services at a local business. This agreement is not expected to be ongoing. Development Services –The increase over budget is due to building and construction plan review and approval fees for projects taking place in the city by external companies. These fees like building permits have increased over the past several years after a sharp decline in 2023, signalling recovering in the construction sectors. The overall change from the prior year figure is due to a large project for Alaska Airlines that accounted for approximately $250K for the overall revenues in this category. Revenue is overall above budget and consistent with prior year figures. FINES AND PENALTIES Photo Enforcement Program – The number of infractions issued for school zone infractions and red light cameras has decreased approximately 20% in comparison to prior year and has decreased steadily each year since 2021. The largest decreases of infractions issued are from red light cameras at Puget Drive, Talbot, Park Ave and Logan Ave. Non-Court Fines, Forfeitures and Penalties – Approximately $275K relates to fines and penalties on past due business and occupation taxes. Prior year figures are higher by $200K as these figures include a settlement of a large tax appeal and fines for several years of shopping cart violations from one retailer. MISCELLANEOUS REVENUES 2024 2025 2025 Actual Budget Actual $ % $ % Passport Fees 9,382 10,000 5,600 (3,782) -40.3% (4,400) -44.0% Court Services 92,101 120,000 47,727 (44,373) -48.2% (72,272) -60.2% General Government Services 110 - 252 142 128.7% 252 100.0% Public Safety Services 878,634 742,503 1,331,953 453,319 51.6% 589,450 79.4% Development Services 3,011,750 2,235,000 2,763,260 (248,490) -8.3%528,260 23.6% Transportation Services 66,690 - 74,046 7,355 11.0% 74,045 100.0% Social Services 65,803 - 25,882 (39,921) -60.7%25,882 100.0% Parks and Recreation Fees 1,674,443 1,645,000 1,686,489 12,046 0.7% 41,489 2.5% Interfund Services 5,855,516 6,837,525 6,893,288 1,037,772 17.7% 55,763 0.8% YTD Total 11,654,429$ 11,590,028$ 12,828,497$ 1,174,068$ 10.1% 1,238,469$ 10.7% Year to Date through December Charges for Services by Type Revenue 2025 vs. 2024 2025 vs. Budget 2024 2025 2025 Actual Budget Actual $ % $ % Civil Penalties 258,438$ 240,000$ 323,683$ 65,245$ 25.2% 83,683$ 34.9% Photo Enforcement Program 2,897,156 2,250,000 2,425,576 (471,580) -16.3%175,576 7.8% Criminal Traffic Misdemeanor Fines 12,360 25,000 9,580 (2,780) -22.5% (15,420) -61.7% Criminal Non-Traffic Fines 2,695 5,000 13,175 10,479 388.8% 8,175 163.5% Criminal Costs 13,680 15,000 8,909 (4,771) -34.9% (6,091) -40.6% Non-Court Fines, Forfeitures and Penalties 710,149 180,000 489,259 (220,890) -31.1%309,259 171.8% YTD Total 3,894,478$ 2,715,000$ 3,270,181$ (624,297)$ -16.0%555,181$ 20.4% Year to Date through December Revenue 2025 vs. 2024 2025 vs. Budget Fines and Penalties by Type 2024 2025 2025 Actual Budget Actual $ % $ % Interest and Other Investment Earnings 4,963,822$ 4,220,000$ 5,229,523$ 265,701$ 5.4% 1,009,523$ 23.9% Rents, Leases, and Concessions 1,640,858 1,291,000 1,422,256 (218,602) -13.3%131,256 10.2% Contributions/Donations from Private Sources 267,561 179,877 273,712 6,151 2.3% 93,835 52.2% Other 1,238,916 165,000 562,470 (676,446) -54.6%397,470 240.9% YTD Total 8,111,157$ 5,855,877$ 7,487,961$ (623,196)$ -7.7%1,632,084$ 27.9% Year to Date through December Revenue 2025 vs. 2024 2025 vs. Budget Miscellaneous by Type Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 5 of 29 Interest and Other Investment Earnings – Investment earnings are highly influenced by the federal funds rate as a large amount of the city’s investments are maintained within the Local Government Investment Pool (LGIP). The LGIP maintains a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city holds roughly 54% of the total cash and investments for the city in the LGIP. The budget anticipated several decreases in interest rates however the federal fund rates continue to be higher than anticipated. Other – This category includes funds received for opioid settlements. Most of the opioid settlements are to be received over time however in 2024 there were two substantial opioid settlements in which the full settlement was paid at once; these settlements are one time funding and would not be expected to continue into future years. OTHER FINANCING SOURCES 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 the restructuring of the communications staff costs which were previously reported as an internal service fund and are now reported in the general fund. 2025 figures also include newly approved positions, and cost-of-living adjustments. Personnel costs under budget are due to open positions; approximately 8% of budgeted positions currently vacant. Contracted Services - These costs are typically cyclical in nature and/or are related large projects or projects funded by grants where the timing of costs may vary. A large amount of the unspent budget relates to reserves and legal services for ongoing litigation support. Transfers Out - This category relates to transfers from the general fund into other funds. The increase in transfers in the current year relates to a large transfer to the municipal facilities capital fund to purchase the new parks property by the community center and the purchase of the land for the parks maintenance facility and resource center. This purchase is expected to be completed in 2026. 2024 2025 2025 Actual Budget Actual $ % $ % Transfers from Other Funds 983,468$ 1,551,911$ 1,551,911$ 568,443 57.8%(0) 0.0% Interfund Loan Payment Received 45,057 47,000 45,434 377 0.8%(1,566) -3.3% Insurance Recoveries 28,027 - 121,890 93,863 334.9% 121,890 100.0% YTD Total 1,079,153$ 1,598,911$ 1,719,235$ 640,082$ 59.3% 120,324$ 7.5% Year to Date through December Other Financing Sources by Type Revenue 2025 vs. 2024 2025 vs. Budget General Fund Summary of Uses 2024 Year to Date through December YTD Actual YTD Budget YTD Actual $%$% Personnel 76,133,720$ 90,029,629$ 81,666,488$ (5,532,768)$ -7.3%8,363,141$ 9.3% Supplies 2,190,357 2,243,203 2,132,904 57,453 2.6% 110,299 4.9% Contracted Services 25,000,263 28,052,994 25,018,189 (17,926) -0.1%3,034,805 10.8% Capital Outlay 198,967 114,570 135,684 63,283 31.8%(21,114) -18.4% Internal Services 20,974,573 22,656,985 22,656,985 (1,682,412) -8.0% - 0.0% Transfers Out 15,029,799 25,551,780 25,534,348 (10,504,549) -69.9%17,432 0.1% Total Expenditures 139,527,679 168,649,161 157,144,598 (17,616,919) -12.6% 11,504,563 6.8% Annual Total 139,527,678 168,649,153 2025 2025 vs. 2024 2025 vs. Budget Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 6 of 29 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. Detailed explanations will be provided for material annual budget differences at year-end. GENERAL GOVERNMENTAL MISCELLANEOUS DEBT FUND The General Governmental Miscellaneous Debt Fund is the only debt service fund maintained by the city. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 32,358$ 27,000$ 25,546$ (6,812)$ (1,454)$ 94.61% Investment Earnings 202,530 - 201,283 (1,247) 201,283 N/A TOTAL REVENUES 234,888 27,000 226,829 (8,059) 199,829 840.11% EXPENDITURES: Principal 1,995,000 2,075,000 2,075,000 (80,000) - 100.00% Interest 960,590 877,717 877,407 83,183 310 99.96% TOTAL EXPENDITURES 2,955,590 2,952,717 2,952,407 3,183 310 99.99% Transfers In 3,120,775 2,923,225 2,923,225 (197,550) - 100.00% NET TRANSFERS 3,120,775 2,923,225 2,923,225 (197,550) - 100.00% CHANGE IN FUND BALANCE 400,073 (2,492) 197,647 (202,426) 200,139 N/A BEGINNING FUND BALANCE, Jan 1 5,412,174 5,812,247 5,812,247 400,073 - 100.00% ENDING FUND BALANCE, Dec 31 5,812,247$ 5,809,755$ 6,009,894$ 197,647$ 200,139$ 103.44% Debt Service Reserve 2,717,575 2,706,325 2,706,325 AVAILABLE FUND BALANCE 3,094,672$ 3,103,430$ 3,303,569$ VARIANCE FAVORABLE (UNFAVORABLE) GENERAL GOVERNMENTAL MISCELLANEOUS DEBT Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 7 of 29 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 annual budget differences at year-end. 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 – these costs relate to LTAC funding that has yet to be spent by year end. These figures will be carried forward to next year. 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. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 575,662$ 350,000$ 549,952$ (25,710)$ 199,952$ 157.13% Contributions 30,000 5,000 - (30,000) (5,000) 0.00% Investment Earnings 40,710 - 45,327 4,617 45,327 N/A TOTAL REVENUES 646,372 355,000 595,279 (51,093) 240,279 167.68% EXPENDITURES: Contracted Services 340,666 644,939 472,538 (131,872) 172,401 73.27% Capital Outlay - - 68,310 68,310 68,310 N/A TOTAL EXPENDITURES 340,666 644,939 540,848 (200,182) 104,091 83.86% Transfers Out (10,000) - - 10,000 - N/A NET TRANSFERS (10,000) - - 10,000 - N/A CHANGE IN FUND BALANCE 295,706 (289,939) 54,431 (241,275) 344,370 -18.77% BEGINNING FUND BALANCE, Jan 1 889,271 1,184,977 1,184,977 295,706 - 133.25% ENDING FUND BALANCE, Dec 31 1,184,977$ 895,038$ 1,239,408$ 54,431$ 344,370$ 104.59% VARIANCE FAVORABLE (UNFAVORABLE) HOTEL/MOTEL 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 46,512$ 60,000$ 39,908$ (6,604)$ (20,092)$ 66.51% Contributions 2,596 - - (2,596) - N/A Investment Earnings 14,665 - 13,049 (1,616) 13,049 N/A TOTAL REVENUES 63,773 60,000 52,957 (10,816) (7,043) 88.26% EXPENDITURES: Supplies 3,112 6,302 - (3,112) 6,302 0.00% Contracted Services 46,750 116,372 - (46,750) 116,372 0.00% TOTAL EXPENDITURES 49,862 122,674 - (49,862) 122,674 0.00% CHANGE IN FUND BALANCE 13,911 (62,674) 52,957 39,046 115,631 N/A BEGINNING FUND BALANCE, Jan 1 358,300 372,210 372,210 13,910 - 100.00% ENDING FUND BALANCE, Dec 31 372,211$ 309,536$ 425,167$ 52,956$ 115,631$ 137.36% CABLE COMMUNICATIONS VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 8 of 29 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. Contracted Services – The City entered a new two-year contract with the Renton School District to support a Renton Student Health Hub that began in Q4 2024. The payments for the project are based on completion of project phases, which is to continue through 2026. Additionally, council approved $1.4M dedicated to two supportive housing projects; these costs have yet to be incurred. Transfers – Funding for the purchase of land for the future resource enter site. The resource center will provide one location to provide services for those in need of help with homelessness and addiction. Springbrook Wetlands Fund The Springbrook Wetlands Fund was established in 2007 for the purpose of providing accounting for the Springbrook Creek Wetland and Habitat Mitigation Bank project. The proceeds of selling wetlands credits will be used to fund the ongoing maintenance of the wetland in perpetuity. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 4,480,757$ 4,000,000$ 4,470,468$ (10,289)$ 470,468$ 111.76% Investment Earnings 507,191 30,000 623,116 115,925 593,116 2077.05% TOTAL REVENUES 4,987,948 4,030,000 5,093,584 105,636 1,063,584 126.39% EXPENDITURES: Contracted Services 369,156 3,288,219 1,235,531 866,375 2,052,688 37.57% TOTAL EXPENDITURES 369,156 3,288,219 1,235,531 866,375 2,052,688 37.57% Transfers Out - (3,400,000) (3,400,000) (3,400,000) - N/A NET TRANSFERS - (3,400,000) (3,400,000) (3,400,000) - N/A CHANGE IN FUND BALANCE 4,618,792 (2,658,219) 458,053 (4,160,739) 3,116,272 N/A BEGINNING FUND BALANCE, Jan 1 10,811,847 15,430,640 15,430,640 4,618,793 - 100.00% ENDING FUND BALANCE, Dec 31 15,430,639$ 12,772,421$ 15,888,693$ 458,054$ 3,116,272$ 124.40% HOUSING & SUPPORTIVE SERVICES VARIANCE FAVORABLE (UNFAVORABLE) 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 4,132$ -$ 4,256$ 124$ 4,256$ N/A Investment Earnings 28,212 - 26,326 (1,886) 26,326 N/A TOTAL REVENUES 32,344 - 30,582 (1,762) 30,582 N/A EXPENDITURES: Personnel 6,250 - 9,573 (3,323) (9,573) N/A Contracted Services 14,249 40,000 18,294 (4,045) 21,706 45.73% TOTAL EXPENDITURES 20,499 40,000 27,867 (7,368) 12,133 69.67% CHANGE IN FUND BALANCE 11,845 (40,000) 2,715 (9,130) 42,715 N/A BEGINNING FUND BALANCE, Jan 1 711,119 722,963 722,963 11,844 - 100.00% ENDING FUND BALANCE, Dec 31 722,964$ 682,963$ 725,678$ 2,714$ 42,715$ 106.25% SPRINGBROOK WETLANDS VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 9 of 29 Police Seizure Funds The Police Seizure and CSAM Funds were established for the purpose of providing transparency in the accounting for assets seized by Police in accordance with RCW 9A.83.030, RCW 9A.88.150 and 69.50.505. These seizure funds are restricted to use exclusively for the expansion and improvement of controlled substances-related law enforcement activity, or for 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 supplies line item and contracted services line item for CSAM. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 2,686$ -$ 148,338$ 145,652$ 148,338$ N/A Contributions 421,850$ -$ 60,846$ (361,005)$ 60,846$ N/A Investment Earnings 28,906 - 27,726 (1,180) 27,726 N/A TOTAL REVENUES 453,442 - 236,910 (216,532) 236,910 N/A EXPENDITURES: Supplies 12,865 790,432 180,669 167,804 609,763 22.86% Contracted Services 261,361 - 162,504 (98,857) (162,504) N/A Capital Outlay 120,711 - 148,046 27,335 (148,046) N/A TOTAL EXPENDITURES 394,937 790,432 491,219 96,282 299,213 62.15% CHANGE IN FUND BALANCE 58,505 (790,432) (254,309) (312,814) 536,123 N/A BEGINNING FUND BALANCE, Jan 1 731,929 790,432 790,432 58,503 - 100.00% ENDING FUND BALANCE, Dec 31 790,434$ -$ 536,123$ (254,311)$ 536,123$ N/A POLICE SEIZURE VARIANCE FAVORABLE (UNFAVORABLE) 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Fines and penalties 1,670$ -$ 14,967$ 13,297$ 14,967$ N/A Investment Earnings 5,308 - 4,923 (385) 4,923 N/A TOTAL REVENUES 6,978 - 19,890 12,912 19,890 N/A EXPENDITURES: Supplies 1,375 - 271 (1,104) (271) N/A Contracted Services 2,235 132,667 18,319 16,084 114,348 13.81% Capital Outlay 40,278 - - (40,278) - N/A TOTAL EXPENDITURES 43,887 132,667 18,590 (25,298) 114,077 14.01% CHANGE IN FUND BALANCE (36,909) (132,667) 1,300 38,210 133,967 N/A BEGINNING FUND BALANCE, Jan 1 169,577 132,667 132,667 (36,910) - 100.00% ENDING FUND BALANCE, Dec 31 132,668$ -$ 133,967$ 1,299$ 133,967$ N/A POLICE CSAM SEIZURE VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 10 of 29 Affordable Housing Development Fund The Affordable Housing Development Fund was created in 2024, per ordinance 6137. 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. 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. School District Impact Mitigation This fund accounts for school district impact fees collected from developers as authorized by RCW 82.02.050-.110. These fees are used to help offset the cost of improvements to service the new development. Impact fees are held in this fund and subsequently transferred to the Kent, Issaquah, or Renton School District for qualifying capital projects. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 292,000$ -$ -$ (292,000)$ -$ N/A Investment Earnings 923$ -$ 10,685$ 9,762$ 10,685$ N/A TOTAL REVENUES 292,923 - 10,685 (282,238) 10,685 N/A EXPENDITURES: TOTAL EXPENDITURES - - - - - N/A CHANGE IN FUND BALANCE 292,923 - 10,685 (282,238) 10,685 N/A BEGINNING FUND BALANCE, Jan 1 - 292,923 292,923 292,923 - 100.00% ENDING FUND BALANCE, Dec 31 292,923$ 292,923$ 303,608$ 10,685$ 10,685$ 103.65% AFFORDABLE HOUSING DEVELOPMENT VARIANCE FAVORABLE (UNFAVORABLE) 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 98,123$ 200,000$ 46,706$ (51,418)$ (153,295)$ 23.35% TOTAL REVENUES 98,123 200,000 46,706 (51,418) (153,295) 23.35% EXPENDITURES: Contracted Services 95,633 200,000 49,196 (46,438) 150,804 24.60% TOTAL EXPENDITURES 95,633 200,000 49,196 (46,438) 150,804 24.60% CHANGE IN FUND BALANCE 2,490 - (2,490) (4,980) (2,490) N/A BEGINNING FUND BALANCE, Jan 1 - 2,490 2,490 2,490 - 100.00% ENDING FUND BALANCE, Dec 31 2,490$ 2,490$ -$ (2,490)$ (2,490)$ 0.00% FIRE IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 318,317$ 600,000$ 165,027$ (153,290)$ (434,973)$ 27.50% Investment Earnings 1,108 - 717 (391) 717 N/A TOTAL REVENUES 319,425 600,000 165,744 (153,681) (434,256) 27.62% EXPENDITURES: Contracted Services 317,091 600,000 168,111 (148,980) 431,889 28.02% TOTAL EXPENDITURES 317,091 600,000 168,111 (148,980) 431,889 28.02% CHANGE IN FUND BALANCE 2,334 - (2,367) (4,701) (2,367) N/A BEGINNING FUND BALANCE, Jan 1 33 2,367 2,367 2,334 - 100.00% ENDING FUND BALANCE, Dec 31 2,367$ 2,367$ -$ (2,367)$ (2,367)$ 0.00% SCHOOL DISTRICT IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 11 of 29 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 improvements 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. Transportation Impact Mitigation Fund This fund accounts for transportation impact fees collected from developers as authorized under RCW 82.02.050-.110. These fees are used to offset the cost of system improvements necessary to serve the new development. Impact fees are held in this fund and subsequently transferred to the Capital Improvement Fund when qualifying projects are budgeted. Charges for Services – The increase from prior year is primarily due to permit revenue related to a new grocery store soon to open at the Landing. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 173,883$ 100,000$ 216,174$ 42,291$ 116,174$ 216.17% Investment Earnings 29,528 - 17,589 (11,939) 17,589 N/A TOTAL REVENUES 203,411 100,000 233,763 30,352 133,763 233.76% EXPENDITURES: TOTAL EXPENDITURES - - - - - N/A Transfers Out 525,000 (105,000) (105,000) (630,000) - 100.00% NET TRANSFERS (525,000) (105,000) (105,000) 630,000 - 100.00% CHANGE IN FUND BALANCE (321,589) (5,000) 128,763 450,352 133,763 -2575.26% BEGINNING FUND BALANCE, Jan 1 681,332 359,743 359,743 (321,589) - 100.00% ENDING FUND BALANCE, Dec 31 359,743$ 354,743$ 488,506$ 128,763$ 133,763$ 137.71% COMMUNITY SERVICES IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 1,284,081$ 1,000,000$ 11,209,395$ 9,925,315$ 10,209,395$ 1120.94% Investment Earnings 108,970 - 373,199 264,229 373,199 N/A TOTAL REVENUES 1,393,051 1,000,000 11,582,594 10,189,544 10,582,594 1158.26% EXPENDITURES: TOTAL EXPENDITURES - - - - - N/A Transfers Out - (1,450,935) (1,450,935) (1,450,935) (0) 100.00% NET TRANSFERS - (1,450,935) (1,450,935) (1,450,935) (2,901,870) 100.00% CHANGE IN FUND BALANCE 1,393,051 (450,935) 10,131,659 8,738,608 10,582,594 N/A BEGINNING FUND BALANCE, Jan 1 2,220,269 3,613,321 3,613,321 1,393,052 - 100.00% ENDING FUND BALANCE, Dec 31 3,613,320$ 3,162,386$ 13,744,980$ 10,131,660$ 10,582,594$ 434.64% TRANSPORTATION IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 12 of 29 REET 1 and REET 2 Funds These funds were established in the 2nd quarter of 2020 to account for the first and second quarter percent of real estate excise tax (REET) levied in accordance with RCW 82.46.010 and RCW 82.46.035. The tax may be used for eligible capital projects, as defined in RCW.82.46.010(6) or RCW.82.46.035(5), that are included in the capital facilities element of the city’s comprehensive plan. REET tax revenues are held in the respective fund and subsequently transferred to the appropriate capital project fund when qualifying projects are budgeted. REET 1 and REET 2 Taxes – The decrease in taxes from prior year are due to a decrease in real estate transactions as real estate sales slowed with the higher cost to borrow money as well as the prior year included a large sale of a hotel and conference center that occurred in 2024 ($180K). 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 3,168,839$ 2,500,000$ 2,408,480$ (760,359)$ (91,520)$ 96.34% Investment Earnings 126,902 20,000 222,822 95,920 202,822 1114.11% TOTAL REVENUES 3,295,741 2,520,000 2,631,302 (664,439) 111,302 104.42% EXPENDITURES: TOTAL EXPENDITURES - - - - - N/A Transfers Out - (6,560,000) (6,560,000) (6,560,000) - 100.00% NET TRANSFERS - (6,560,000) (6,560,000) 6,560,000 - 100.00% CHANGE IN FUND BALANCE 3,295,741 (4,040,000) (3,928,698) (7,224,439) 111,302 97.25% BEGINNING FUND BALANCE, Jan 1 1,765,153 5,060,894 5,060,894 3,295,741 - 100.00% ENDING FUND BALANCE, Dec 31 5,060,894$ 1,020,894$ 1,132,196$ (3,928,698)$ 111,302$ 110.90% REET 1 VARIANCE FAVORABLE (UNFAVORABLE) 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 3,168,839$ 2,500,000$ 2,408,482$ (760,357)$ (91,518)$ 96.34% Investment Earnings 181,748 20,000 122,603 (59,145) 102,603 613.02% TOTAL REVENUES 3,350,587 2,520,000 2,531,085 (819,502) 11,085 100.44% EXPENDITURES: TOTAL EXPENDITURES - - - - - N/A Transfers Out (4,183,425) (2,799,625) (2,799,625) 1,383,800 - 100.00% NET TRANSFERS (4,183,425) (2,799,625) (2,799,625) (1,383,800) - 100.00% CHANGE IN FUND BALANCE (832,838) (279,625) (268,540) 564,298 11,085 96.04% BEGINNING FUND BALANCE, Jan 1 3,145,503 2,312,665 2,312,665 (832,838) - 100.00% ENDING FUND BALANCE, Dec 31 2,312,665$ 2,033,040$ 2,044,125$ (268,540)$ 11,085$ 100.55% REET 2 VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 13 of 29 Municipal Facilities CIP Fund This fund accounts for general governmental facility construction, improvement, and renovation; property acquisitions for parks and city space needs; parks development and equipment; and major maintenance of existing general governmental assets. Transportation capital improvements are accounted for in a separate fund. Grants/Intergovernmental – Federal/State/Local grant revenue is budgeted at 100% of award at the time the grant agreement is executed. The current year budget includes approximately $4.5M for improvements to the downtown pavilion remodel, piazza and world cup square, all of which should be completed by early 2026. The other grants include CDBG funding for senior center improvements currently in the planning phase, with construction planned for early Summer 2026. Project costs vary by project timeline and status. Below is a list of current budgeted projects and actual costs to date: 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 1,861,080$ 8,743,919$ 1,131,524$ (729,556)$ (7,612,395)$ 12.94% Charges for services 9,000 - 59,875 50,875 59,875 N/A Contributions 26,457 247,228 - (26,457) (247,228) 0.00% Investment Earnings 800,300 100,000 976,686 176,386 876,686 976.69% TOTAL REVENUES 2,696,837 9,091,147 2,168,085 (528,752) (6,923,062) 23.85% EXPENDITURES: Personnel 121,639 - 52,273 (69,366) (52,273) N/A Supplies - - 33,031 33,031 (33,031) N/A Contracted Services 2,637,576 5,384,904 1,114,556 (1,523,020) 4,270,348 20.70% Capital Outlay 3,354,561 61,401,471 31,789,519 28,434,958 29,611,952 51.77% TOTAL EXPENDITURES 6,113,776 66,786,375 32,989,379 26,875,603 33,796,996 49.40% Transfers In 9,837,858 32,152,187 32,152,187 22,314,330 - 100.00% Transfers Out (220,422) - - 220,422 - N/A NET TRANSFERS 9,617,435 32,152,187 32,152,187 22,534,752 - 100.00% CHANGE IN FUND BALANCE 6,200,496 (25,543,041) 1,330,893 (4,869,603) 26,873,934 -5.21% BEGINNING FUND BALANCE, Jan 1 21,980,020 28,180,516 28,180,516 6,200,496 - 100.00% ENDING FUND BALANCE, Dec 31 28,180,516$ 2,637,475$ 29,511,409$ 1,330,893$ 26,873,934$ 1118.93% MUNICIPAL FACILITIES CIP VARIANCE FAVORABLE (UNFAVORABLE) PROJECT BUDGET ACTUAL PROJECT BUDGET ACTUAL DOWNTOWN STREETSCAPE 39,873 - COULON SWIM BEACH 559,774 119,028 RENTON TRAIL CONNECTOR 81,946 - KIWANIS PARK 111,105 39,778 RENTON COMMUNITY CENTER 100,000 - COULON - TRESTLE BRIDGE 24,752 50 ESCO PROJECT PHASE 3A 471,195 148,494 MAY CREEK TRAIL SOUTH 3,322,440 82,253 LOBBY REMODEL 2,884,752 41,152 CEDAR RIVER TRAILS FLOOD DISASTER 382,913 45,611 PARK AVE MAINTENANCE FACILITY 60,000 25,808 MAPLEWOOD PLAYGROUND REPLACEMENT 403,493 343,481 PAVILION REMODEL 7,026,068 2,552,314 LIBERTY SPORTS AND SKATE PARK 238,043 6,618 SENIOR CENTER IMPROVEMENTS 2,055,236 237,171 CITY HALL TURF DRAINAGE 50,000 - ESCO FACILITIES ENERGY AUDIT PHASE 4 2,954,718 581,990 TALBOT SPORT COURT IMPROVEMENTS 1,057,043 910,747 CITY HALL STRUCTURAL REPAIRS 200,000 - CLEVELAND RICHARDSON PARK 460,304 149,269 PUBLIC WORKS SHOPS IMPROV 200,000 - MAY CREEK PARK 1,060,425 210,719 200 MILL MAJOR MAINTENANCE 400,000 97,340 MISER PROPERTY ACQUISITION 85,888 - CARCO THEATER UPGRADES 50,000 - PIAZZA PARK IMPROVEMENTS 1,509,920 806,178 BOATHOUSE IMPROVEMENTS 100,000 - HIGHLAND PARK PLAYGROUND 850,000 4,000 HISTORICAL MUSEUM IMPROVEMENTS 350,000 55,000 SPRINGBROOK BOARDWALK 55,000 - HIGHLANDS NEIGHBORHOOD CTR GYM 50,000 - CEDAR RIVER TRAIL PARK EXPANSION 22,000,000 22,113,479 EV CHARGER INSTALLATIONS 99,000 20,818 EARLINGTON PARK RENOVATION 300,000 - BOATHOUSE - PROFESSIONAL SERVICES 53,387 - EDLUND-CARR RD PARK 215,000 - HENRY MOSS AQUATIC CENTER 2,375,861 1,765,717 WORLDCUP LEGACY SQUARE 4,432,000 2,239,351 PARKS RECREATION AND OPEN SPACE PLAN 269,555 259,015 COMPTON LUMBER LAND ACQUISITION 8,554,000 49,418 PATHWAY SIDEWALK PATIO BOARDWALK REPLACE 200,000 48,581 MAY CREEK FLOOD REPAIR 400,000 - URBAN FORESTRY PROGRAM 169,287 32,981 SAM CHASTAIN TRAIL 485,000.00 - PARKS MM - STRUCTURAL REVIEWS & REPAIRS 38,398 3,018 MUNICIPAL FACILITIES CIP PROJECT BUDGETS as of 12/31/2025 Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 14 of 29 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. Taxes – Include sales taxes received through the formation of a Transportation Benefit District (TBD) in 2024 and are over budget by approximately $500K. Grants/Intergovernmental – Federal/State/Local grant revenue is budgeted at 100% of award at the time the grant agreement is executed. The current year budget includes $10M in federal grants for the Rainier Ave improvement project, $3M state grant for SW 43rd Street Improvement, $2.4M for the S 7th street improvements and $1.7M for Oaksdale preservation project. Project costs vary by project timeline and status. Below is a list of current budgeted projects and actual costs to date: 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 2,585,061$ 3,962,726$ 4,415,913$ 1,830,852$ 453,187$ 111.44% Grants / intergovernmental 7,711,075 21,937,631 11,584,132 3,873,057 (10,353,499) 52.80% Charges for services 9,880 90,000 35,686 25,806 (54,314) 39.65% Contributions 5,424,407 4,028,371 4,067,779 (1,356,628) 39,408 100.98% Investment Earnings 572,056 75,000 612,148 40,092 537,148 816.20% TOTAL REVENUES 16,302,479 30,093,728 20,715,658 4,413,179 (9,378,070) 68.84% EXPENDITURES: Personnel 101,311 25,000 306,857 205,546 (281,857) 1227.43% Supplies 54,531 - 70,883 16,352 (70,883) N/A Contracted Services 271,598 2,841,174 1,768,412 1,496,814 1,072,762 62.24% Capital Outlay 19,904,712 41,905,447 19,659,245 (245,467) 22,246,202 46.91% Internal Services 56,000 - - (56,000) - N/A TOTAL EXPENDITURES 20,388,152 44,771,621 21,805,397 1,417,245 22,966,224 48.70% Transfers In 2,954,000 4,276,935 4,276,935 1,322,935 - 100.00% Transfers Out (18,000) - - 18,000 - N/A NET TRANSFERS 2,936,000 4,276,935 4,276,935 1,304,935 - 100.00% CHANGE IN FUND BALANCE (1,149,673) (10,400,958) 3,187,196 4,336,869 13,588,154 N/A BEGINNING FUND BALANCE, Jan 1 15,282,117 14,132,445 14,132,445 (1,149,672) - 100.00% ENDING FUND BALANCE, Dec 31 14,132,444$ 3,731,487$ 17,319,641$ 3,187,197$ 13,588,154$ 464.15% CAPITAL IMPROVEMENT VARIANCE FAVORABLE (UNFAVORABLE) PROJECT BUDGET ACTUAL PROJECT BUDGET ACTUAL WALKWAY PGM 2,221,111 19,594 INTERSECT SAFETY & MOBILITY 4,870 - ARTERIAL CIRCULATION PGM 288,350 265,737 NE 31ST ST BRIDGE REPLACEMENT 49,179 - BRIDGE INSPECTION & REPAIR 304,864 110,515 N 27TH PL CULVERT SCOUR REPAIR 29,457 - ROADWAY SAFETY & GUARDRAIL 86,420 15,572 LAKE WASHINGTON LOOP TRAIL 15,000 4,727 I-405/44TH GATEWAY SIGNAGE-WSDOT 33,550 16,135 MAPLEWOOD SIDEWALK REHAB 1,464,923 145,403 I-405/44TH GATEWAY SIGNAGE 196,806 - 116TH SIDEWALK 1,420,230 362,550 RENTON CONNECTOR 1,226,487 12,022 HIGHLANDS TO LANDING 14,110 5,821 OAKESDALE PRESERVATION 3,623,402 412,634 PRES OF TOD 232,769 144,592 SUNSET TRAIL 1,338,674 490,819 ARTERIAL REHAB - SW 43RD 5,865,211 191,383 STREET OVERLAY PGM 1,959,321 804,323 BRONSON BRIDGE 95,713 5,290 CEDAR AVE SIDEWALK 559,204 351,789 HOUSER WAY N BRIDGE 489,803 95,182 TRAFFIC SAFETY PGM 1,317,208 161,383 WILLIAMS BRIDGE 500,989 85,017 SO 7TH ST 2,719,681 2,670,847 SAFE ROUTES TO TRANSIT 2,701 - ITS PGM 846,099 576,465 TRAFFIC CALMING SPEED CUSHION 369,132 266,771 PARK AVE EXTENSION 394,174 187,119 SOUND TRANSIT NE 44TH STREET 70,267 18,388 RAINIER AVE S/N PHASE 4 16,135,955 14,339,018 CITYWIDE VISION ZERO 500,000 46,302 NE 31ST ST ROAD/EMBANK REPAIR 395,958 - CAPITAL IMPROVEMENT PROJECT BUDGETS as of 12/31/2025 Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 15 of 29 Family First Center Fund This fund is used to account for the construction of the new Family First Center, which was substantially completed in 2023. Formal action to close this fund is included in the mid-biennial budget ordinance. The remaining funds will go to help fund the purchase of parks land near the community center. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Contributions 145,523$ -$ -$ (145,523)$ -$ N/A Investment Earnings 148,588 82,640 82,640 (65,948) - 100.00% TOTAL REVENUES 294,111 82,640 82,640 (211,471) - 100.00% EXPENDITURES: TOTAL EXPENDITURES - - - - - N/A Transfers Out - (4,020,187) (4,020,187) (4,020,187) - N/A NET TRANSFERS - (4,020,187) (4,020,187) 4,020,187 - N/A CHANGE IN FUND BALANCE 294,111 (3,937,547) (3,937,547) (4,231,658) - N/A BEGINNING FUND BALANCE, Jan 1 3,643,436 3,937,547 3,937,547 294,111 - 100.00% ENDING FUND BALANCE, Dec 31 3,937,547$ -$ -$ (3,937,547)$ -$ N/A FAMILY FIRST CENTER VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 16 of 29 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. Detailed explanations will be provided for material annual budget differences at year-end. 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. Airport Fund: This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and maintenance of the Renton Municipal Airport. Grants/Intergovernmental – Federal/State/Local grant revenue is budgeted at 100% of award at the time the grant agreement is executed. The current year budget includes $17.6M in federal grants for the Taxiway Alpha Rehabilitation project. Capital Outlay – The largest planned capital project for the airport is the rehabilitation of the Taxiway Alpha at over $21M. This project is in the planning phase. Contracted Services & Supplies – Current year costs include professional services for repairs and maintenance to old buildings and repairing flood damage. Although these costs are included in contracted services, the budget for these large projects are included in the capital outlay line item. There is sufficient budget for these projects. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 1,029,795$ 18,153,162$ 78,437$ (951,358)$ (18,074,725)$ 0.43% Charges for services 3,726,328 4,899,430 4,985,666 1,259,338 86,236 101.76% Fines and penalties - - 75 75 75 N/A Rents, leases, and misc fees 564,349 - - (564,349) - N/A Interest and other misc 503,650 3,857 521,974 18,324 518,117 13533.16% TOTAL REVENUES 5,824,122 23,056,449 5,586,152 (237,970) (17,470,297) 24.23% EXPENSES: Personnel 1,266,433 1,769,025 1,403,981 (137,548) 365,044 79.36% Supplies 155,464 74,089 142,632 12,832 (68,543) 192.51% Contracted Services 572,960 972,346 966,831 (393,871) 5,515 99.43% Internal Services 448,730 555,294 533,746 (85,016) 21,548 96.12% TOTAL OPERATING EXPENSES 2,443,587 3,370,754 3,047,190 (603,603) 323,564 90.40% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 3,380,535 19,685,695 2,538,962 (841,573) (17,146,733) 12.90% CAPITAL OUTLAY 1,407,127 29,805,997 4,204,943 (2,797,816) 25,601,054 14.11% TRANSFERS IN 164,955 3,882 3,882 (161,073) - 100.00% TRANSFERS OUT (61,900) - - (61,900) - N/A NET TRANSFERS 103,055 3,882 3,882 (99,173) - 100.00% CHANGE IN FUND BALANCE 2,076,463 (10,116,420) (1,662,099) (3,738,562) 8,454,321 N/A BEGINNING FUND BALANCE, Jan 1 11,276,837 13,353,300 13,353,300 2,076,463 - 100.00% ENDING FUND BALANCE, Dec 31 13,353,300$ 3,236,880$ 11,691,201$ (1,662,099)$ 8,454,321$ 361.19% Operating Reserve 266,810 287,557 287,557 AVAILABLE FUND BALANCE 13,086,490$ 2,949,323$ 11,403,644$ VARIANCE FAVORABLE (UNFAVORABLE) AIRPORT Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 17 of 29 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. Charges for Services– A change in accounting method was implemented in 2025 on when revenue is recognized, therefore current year figures include only 11 months of revenues in the YTD actual figures above. Monthly income is approximately $2.4M per month. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 92,218$ 653,313$ 400,058$ 307,840$ (253,255)$ 61.24% Charges for services 26,737,975 27,728,744 26,495,029 (242,946) (1,233,715) 95.55% Interest and other misc 160,256 5,000 179,977 19,721 174,977 3599.54% TOTAL REVENUES 26,990,449 28,387,057 27,075,064 84,615 (1,311,993) 95.38% EXPENSES: Personnel 649,057 743,371 668,390 (19,333) 74,981 89.91% Supplies 30,975 48,100 34,433 (3,458) 13,667 71.59% Contracted Services 25,726,706 27,424,809 25,898,857 (172,151) 1,525,952 94.44% Internal Services 530,234 632,144 532,981 (2,747) 99,163 84.31% TOTAL OPERATING EXPENSES 26,936,972 28,848,424 27,134,661 (197,689) 1,713,763 94.06% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 53,477 (461,367) (59,597) (113,074) 401,770 N/A TRANSFERS IN - 29,756 29,756 29,756 - 100.00% TRANSFERS OUT (9,185) - - (9,185) - N/A NET TRANSFERS (9,185) 29,756 29,756 38,941 - 100.00% CHANGE IN FUND BALANCE 44,292 (431,611) (29,841) (74,133) 401,770 N/A BEGINNING FUND BALANCE, Jan 1 3,928,543 3,972,833 3,972,833 44,290 - 100.00% ENDING FUND BALANCE, Dec 31 3,972,835$ 3,541,222$ 3,942,992$ (29,843)$ 401,770$ 111.35% Operating Reserve 400,000 400,000 400,000 AVAILABLE FUND BALANCE 3,572,835$ 3,141,222$ 3,542,992$ SOLID WASTE VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 18 of 29 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. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 3,242,593$ 3,348,080$ 3,421,841$ 179,248$ 73,761$ 102.20% Rents, leases, and misc fees 587,594 545,050 582,043 (5,551) 36,993 106.79% Interest and other misc 103,903 1,370 110,712 6,809 109,342 8081.17% TOTAL REVENUES 3,934,090 3,894,500 4,114,596 180,506 220,096 105.65% EXPENSES: Personnel 1,971,935 2,141,078 1,996,672 (24,737) 144,406 93.26% Supplies 391,971 422,800 435,848 (43,877) (13,048) 103.09% Contracted Services 293,504 446,761 325,169 (31,665) 121,592 72.78% Internal Services 392,232 634,685 491,156 (98,924) 143,529 77.39% TOTAL OPERATING EXPENSES 3,049,642 3,645,324 3,248,845 (199,203) 396,479 89.12% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 884,448 249,176 865,751 (18,697) 616,575 347.45% DEBT SERVICE: Principal 44,982 45,434 45,434 (452) - 100.00% Interest 1,234 782 782 452 - 100.00% TOTAL DEBT SERVICE 46,216 46,216 46,216 - - 100.00% CAPITAL OUTLAY 111,414 1,147,631 571,194 (459,780) 576,437 49.77% TRANSFERS IN 165,000 756,094 556,094 391,094 (200,000) 73.55% TRANSFERS OUT (165,000) (553,100) (553,100) 388,100 - 100.00% NET TRANSFERS - 202,994 2,994 2,994 (200,000) 1.47% CHANGE IN FUND BALANCE 726,818 (741,677) 251,335 (475,483) 993,012 N/A BEGINNING FUND BALANCE, Jan 1 1,884,907 2,611,726 2,611,726 726,819 - 100.00% ENDING FUND BALANCE, Dec 31 2,611,725$ 1,870,049$ 2,863,061$ 251,336$ 993,012$ 153.10% Operating Reserve 764,018 998,353 998,353 AVAILABLE FUND BALANCE 1,847,707$ 871,696$ 1,864,708$ GOLF COURSE VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 19 of 29 Water Utility Fund This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and maintenance of the city’s water utility. Charges for Services – Water rates increased 2% in 2025; current year revenues are on par for this increase. Supplies – Costs for supplies continues to increase more than projected due to higher inflation specifically on the cost of chemicals for water quality and electricity costs. Capital Outlay –Budget for capital outlay includes approximately $20M for the Highland reservoir replacement currently in the planning stages and projected to be completed in 2028. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 1,025$ -$ -$ (1,025)$ -$ N/A Grants / intergovernmental 121,824 - - (121,824) - N/A Charges for services 19,384,917 19,699,293 20,413,380 1,028,463 714,087 103.62% Rents, leases, and misc fees 234,819 136,591 138,376 (96,443) 1,785 101.31% Interest and other misc 3,145,131 76,751 2,361,474 (783,657) 2,284,723 3076.80% TOTAL REVENUES 22,887,716 19,912,635 22,913,230 25,514 3,000,595 115.07% EXPENSES: Personnel 4,974,510 5,848,462 5,258,564 (284,054) 589,898 89.91% Supplies 1,191,769 886,189 1,081,944 109,825 (195,755) 122.09% Contracted Services 3,547,963 3,828,554 4,178,571 (630,608) (350,017) 109.14% Internal Services 2,813,870 2,920,385 2,706,293 107,577 214,092 92.67% TOTAL OPERATING EXPENSES 12,528,112 13,483,590 13,225,372 (697,260) 258,218 98.08% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 10,359,604 6,429,045 9,687,858 (671,746) 3,258,813 150.69% DEBT SERVICE: Principal 1,534,847 1,292,050 1,292,050 242,797 - 100.00% Interest 132,669 100,075 99,634 33,035 441 99.56% TOTAL DEBT SERVICE 1,667,516 1,392,125 1,391,684 275,832 441 99.97% CAPITAL OUTLAY 4,087,433 37,054,225 7,152,101 (3,064,668) 29,902,124 19.30% TRANSFERS IN 125,000 30,847 30,847 (94,153) - 100.00% TRANSFERS OUT (127,181) (13,300) (8,327) (118,854) (4,973) N/A NET TRANSFERS (2,181) 17,547 22,520 24,701 4,973 128.34% CHANGE IN FUND BALANCE 4,602,474 (31,999,758) 1,166,593 (3,435,881) 33,166,351 N/A BEGINNING FUND BALANCE, Jan 1 52,071,466 56,673,940 56,673,940 4,602,474 - 100.00% ENDING FUND BALANCE, Dec 31 56,673,940$ 24,674,182$ 57,840,533$ 1,166,593$ 33,166,351$ 234.42% Restricted for Debt Service 1,394,050 1,394,051 1,394,051 Operating Reserve 1,775,696 3,157,328 3,157,328 AVAILABLE FUND BALANCE 53,504,194$ 20,122,803$ 53,289,154$ WATER UTILITY VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 20 of 29 Wastewater Utility Fund This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and maintenance of the city’s wastewater utility. Charges for Services – In 2025, there was no rate increase in sewer rates, thus explaining the flat growth. 2024 revenue figure included a large one-time back billing amount of over $200K that would not be expected in the current year. Capital Outlay –Budget for capital outlay includes approximately $6.5M for the Kennydale Lakeline sewer upgrade to be completed in 2027. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 80,604$ 62,111$ 73,175$ (7,429)$ 11,064$ 117.81% Charges for services 12,913,405 12,595,638 12,763,094 (150,311) 167,456 101.33% Interest and other misc 1,923,148 74,000 1,561,715 (361,433) 1,487,715 2110.43% TOTAL REVENUES 14,917,157 12,731,749 14,397,984 (519,173) 1,666,235 113.09% EXPENSES: Personnel 2,732,722 3,182,541 2,888,493 (155,771) 294,048 90.76% Supplies 81,536 75,141 65,934 15,602 9,207 87.75% Contracted Services 2,580,801 2,769,927 2,691,774 (110,973) 78,153 97.18% Internal Services 1,987,353 1,950,962 1,873,624 113,729 77,338 96.04% TOTAL OPERATING EXPENSES 7,382,412 7,978,571 7,519,825 (137,413) 458,746 94.25% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 7,534,745 4,753,178 6,878,159 (656,586) 2,124,981 144.71% DEBT SERVICE: Principal 601,700 615,050 615,050 (13,350) - 100.00% Interest 59,434 45,279 45,049 14,385 230 99.49% TOTAL DEBT SERVICE 661,134 660,329 660,099 1,035 230 99.97% CAPITAL OUTLAY 5,330,750 19,183,931 5,746,818 (416,068) 13,437,113 29.96% TRANSFERS IN 2,058 33,690 33,690 31,632 - 100.00% TRANSFERS OUT (1,469) (41,650) (39,177) 37,708 (2,473) N/A NET TRANSFERS 589 (7,960) (5,487) (6,076) 2,473 N/A CHANGE IN FUND BALANCE 1,543,450 (15,099,042) 465,755 (1,077,695) 15,564,797 N/A BEGINNING FUND BALANCE, Jan 1 26,162,848 27,706,297 27,706,297 1,543,449 - 100.00% ENDING FUND BALANCE, Dec 31 27,706,298$ 12,607,255$ 28,172,052$ 465,754$ 15,564,797$ 223.46% Restricted for Debt Service 661,227 661,227 661,227 Operating Reserve 1,045,195 1,014,902 1,677,307 AVAILABLE FUND BALANCE 25,999,876$ 10,931,126$ 25,833,518$ WASTEWATER UTILITY VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 21 of 29 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 – King County sewer rates increased approximately 6% in 2025 which accounts for the large change in these figures. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 22,104,410$ 23,291,462$ 23,057,313$ 952,903$ (234,149)$ 98.99% Interest and other misc 273,421 - 282,625 9,204 282,625 N/A TOTAL REVENUES 22,377,831 23,291,462 23,339,938 962,107 48,476 100.21% EXPENSES: Contracted Services 21,319,462 23,291,462 22,793,793 (1,474,331) 497,669 97.86% TOTAL OPERATING EXPENSES 21,319,462 23,291,462 22,793,793 (1,474,331) 497,669 97.86% CHANGE IN FUND BALANCE 1,058,369 - 546,145 (512,224) 546,145 N/A BEGINNING FUND BALANCE, Jan 1 6,589,443 7,647,812 7,647,812 1,058,369 - 100.00% ENDING FUND BALANCE, Dec 31 7,647,812$ 7,647,812$ 8,193,957$ 546,145$ 546,145$ 107.14% Operating Reserve 380,000 380,000 380,000 AVAILABLE FUND BALANCE 7,267,812$ 7,267,812$ 7,813,957$ KING COUNTY METRO VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 22 of 29 Surface Water Utility Fund This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and maintenance of the city’s surface water utility. Grants/Intergovernmental – Federal/State/Local grant revenue is budgeted at 100% of award at the time the grant agreement is executed. The current year budget includes approximately $9.5M in grants for the Monroe Ave facility and the Cedar River levee project. Capital Outlay –Budget for capital outlay includes approximately $5.2M for the SE 172nd Street storm system improvement, $3.7M for the Cedar River levee recertification and $3.3M for the Windsor Hills storm system improvement all to be completed within the biennium. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 25,500$ 50,708$ 28,875$ 3,375$ (21,833)$ 56.94% Grants / intergovernmental 7,631,093 16,568,810 6,502,736 (1,128,357) (10,066,074) 39.25% Charges for services 13,658,359 13,877,586 14,203,070 544,711 325,484 102.35% Interest and other misc 1,059,705 61,000 1,061,808 2,103 1,000,808 1740.67% TOTAL REVENUES 22,374,657 30,558,104 21,796,489 (578,168) (8,761,615) 71.33% EXPENSES: Personnel 4,110,773 4,808,453 4,357,453 (246,680) 451,000 90.62% Supplies 112,663 175,850 153,648 (40,985) 22,202 87.37% Contracted Services 1,941,196 3,768,591 2,564,635 (623,439) 1,203,956 68.05% Internal Services 2,519,628 3,254,398 2,860,806 (341,178) 393,592 87.91% TOTAL OPERATING EXPENSES 8,684,260 12,007,292 9,936,542 (1,252,282) 2,070,750 82.75% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 13,690,397 18,550,812 11,859,947 (1,830,450) (6,690,865) 63.93% DEBT SERVICE: Principal 681,100 697,900 697,900 (16,800) - 100.00% Interest 73,342 55,869 55,690 17,652 179 99.68% TOTAL DEBT SERVICE 754,442 753,769 753,590 852 179 99.98% CAPITAL OUTLAY 16,254,556 25,850,087 7,503,138 8,751,418 18,346,949 29.03% Transfers In - 30,268 30,268 30,268 - 100.00% Transfers Out (201,484) (41,650) (40,313) (161,171) (1,337) N/A NET TRANSFERS (201,484) (11,382) (10,045) 191,439 1,337 N/A CHANGE IN FUND BALANCE (3,520,085) (8,064,426) 3,593,174 7,113,259 11,657,600 N/A BEGINNING FUND BALANCE, Jan 1 29,287,066 25,766,980 25,766,980 (3,520,086) - 100.00% ENDING FUND BALANCE, Dec 31 25,766,981$ 17,702,554$ 29,360,154$ 3,593,173$ 11,657,600$ 165.85% Restricted for Debt Service 754,868 754,868 754,868 Operating Reserve 1,330,313 2,068,165 2,068,165 AVAILABLE FUND BALANCE 23,681,800$ 14,879,521$ 26,537,121$ SURFACE WATER UTILITY VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 23 of 29 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. Detailed explanations will be provided for material annual budget differences at year-end. 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. Capital Outlay – Vehicles purchased from manufacturers or dealerships are paid upon receipt of the vehicle. These replacements were included in the replacement schedule of vehicles based on age, mileage and condition. It has been increasingly difficult to purchase replacement vehicles, with many vehicles awaiting replacement as inventory comes available. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental -$ -$ 15,000$ 15,000$ 15,000$ N/A Charges for services 44,294 - 62,345 18,051 62,345 N/A Interdepartmental services 6,530,574 6,598,956 6,775,847 245,273 176,891 102.68% Interest and other misc 980,518 12,000 845,029 (135,489) 833,029 7041.91% TOTAL REVENUES 7,555,386 6,610,956 7,698,221 142,835 1,087,265 116.45% EXPENSES: Personnel 1,202,777 1,283,255 1,044,934 157,843 238,321 81.43% Supplies 1,631,804 1,731,153 1,675,172 (43,368) 55,981 96.77% Contracted Services 564,915 533,166 477,616 87,299 55,550 89.58% Internal Services 127,495 152,034 141,969 (14,474) 10,065 93.38% TOTAL OPERATING EXPENSES 3,526,991 3,699,608 3,339,691 187,300 359,917 90.27% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 4,028,395 2,911,348 4,358,530 330,135 1,447,182 149.71% CAPITAL OUTLAY 3,493,012 9,143,279 4,330,405 (837,393) 4,812,874 47.36% TRANSFERS IN 722,372 552,780 552,780 (169,592) - 100.00% NET TRANSFERS 722,372 552,780 552,780 (169,592) - 100.00% CHANGE IN FUND BALANCE 1,257,755 (5,679,151) 580,905 (676,850) 6,260,056 N/A BEGINNING FUND BALANCE, Jan 1 18,278,075 19,535,828 19,535,828 1,257,753 - 100.00% ENDING FUND BALANCE, Dec 31 19,535,830$ 13,856,677$ 20,116,733$ 580,903$ 6,260,056$ 145.18% Operating Reserves 12,995,059 13,856,677 13,856,677 AVAILABLE FUND BALANCE 6,540,771$ -$ 6,260,056$ EQUIPMENT RENTAL VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 24 of 29 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. Contracted Services – Insurance premiums and insurance settlements continue to be the main driver for the increase in this category. Insurance premiums increased 20% over prior year rates. This increase is consistent with industry trends. This category also includes payment for an insurance settlement on an outstanding lawsuit from 2020. The settlement was paid in September, and the mid-biennial budget adjustment includes the council approved settlement amount of $1.5M. Transfers – An increase to the risk reserve based on updated industry recommendation is to have a reserve of at least 2 months reserve on hand or 17% of the general fund expenditures. Our city reserve should be closer to 20% as we are self-insured and have a high risk of natural disasters such as earthquake and flooding. Current year transfers increased to slowly build up the reserve over the next several years to get closer to the industry recommended amount of 17% of the general fund costs with an ultimate goal of 20%. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 4,863,046$ 5,820,527$ 5,623,354$ 760,308$ (197,173)$ 96.61% Interest and other misc 1,118,690 1,100,000 2,675,065 1,556,375 1,575,065 243.19% TOTAL REVENUES 5,981,736 6,920,527 8,298,419 2,316,683 1,377,892 119.91% EXPENSES: Personnel 1,337,507 2,407,011 2,040,577 (703,070) 366,434 84.78% Supplies 552 5,058 1,932 (1,380) 3,126 38.20% Contracted Services 4,181,793 6,050,619 5,734,695 (1,552,902) 315,924 94.78% TOTAL OPERATING EXPENSES 5,519,852 8,462,688 7,777,204 (2,257,352) 685,484 91.90% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 461,884 (1,542,161) 521,215 59,331 2,063,376 N/A Transfers In 1,578,243 3,500,000 3,500,000 1,921,757 - 100.00% Transfers Out (950,000) (955,000) (955,000) 5,000 - N/A NET TRANSFERS 628,243 2,545,000 2,545,000 1,916,757 - 100.00% CHANGE IN FUND BALANCE 1,090,127 1,002,839 3,066,215 1,976,088 2,063,376 305.75% BEGINNING FUND BALANCE, Jan 1 24,691,220 25,781,347 25,781,347 1,090,127 - 100.00% ENDING FUND BALANCE, Dec 31 25,781,347$ 26,784,186$ 28,847,562$ 3,066,215$ 2,063,376$ 107.70% Reserves 20,147,927 22,268,021 22,268,021 AVAILABLE FUND BALANCE 5,633,420$ 4,516,165$ 6,579,541$ INSURANCE VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 25 of 29 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. Capital Outlay –Approximately $3M of the capital outlay budget relates to the replacement of the accounting software. The conversion to the new software will be a multiyear project began October of 2025 and is expected to be completed by the Winter of 2027. Contracted Services – The increase from prior year is due to inflationary increases for software service contracts and addition of new software. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 233,649$ -$ 234,953$ 1,304$ 234,953$ N/A Grants / intergovernmental 86,116 30,000 29,989 (56,127) (11) 99.96% Interdepartmental services 7,537,438 9,385,764 9,385,764 1,848,326 - 100.00% Interest and other misc 325,667 7,000 340,192 14,525 333,192 4859.89% TOTAL REVENUES 8,182,870 9,422,764 9,990,898 1,808,028 568,134 106.03% EXPENSES: Personnel 3,555,639 4,334,132 3,883,260 (327,621) 450,872 89.60% Supplies 1,301,870 1,589,085 595,628 706,242 993,457 37.48% Contracted Services 3,577,419 4,206,088 4,338,095 (760,676) (132,007) 103.14% Internal Services 6,696 4,856 4,856 1,840 - 100.00% TOTAL OPERATING EXPENSES 8,441,624 10,134,161 8,821,839 (380,215) 1,312,322 87.05% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS (258,754) (711,397) 1,169,059 1,427,813 1,880,456 N/A CAPITAL OUTLAY 1,194,008 4,564,128 368,470 825,538 4,195,658 8.07% TRANSFERS IN 1,709,259 631,300 631,380 (1,077,879) 80 100.01% TRANSFERS OUT 40,888 (10,000) - 40,888 (10,000) N/A NET TRANSFERS 1,668,371 621,300 631,380 (1,036,991) 10,080 101.62% CHANGE IN FUND BALANCE 215,609 (4,654,225) 1,431,969 1,216,360 6,086,194 N/A BEGINNING FUND BALANCE, Jan 1 9,416,600 9,632,207 9,632,207 215,607 - 100.00% ENDING FUND BALANCE, Dec 31 9,632,209$ 4,977,982$ 11,064,176$ 1,431,967$ 6,086,194$ 222.26% Operating Reserves 2,551,999 2,785,647 2,785,647 AVAILABLE FUND BALANCE 7,080,210$ 2,192,335$ 8,278,529$ INFORMATION TECHNOLOGY VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 26 of 29 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 and work orders. Supplies – Supplies are currently trending higher than budget as the cost of supplies have increased more than the inflationary adjustments on the budget as well as some large furniture replacements. Budget adjustment for inflation will be necessary to account for the increased costs in 2026 along with ongoing planned replacements. Contracted Services – This category includes the added cost for parks restroom cleaning. As part of the biennial budget process, the city decided to devote additional budget to contract with a cleaning agency to help maintain the parks bathrooms. This contract is almost $400K per year. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 7,237,490$ 7,631,815$ 7,837,727$ 600,237$ 205,912$ 102.70% Interest and other misc 36,765 5,000 67,076 30,311 62,076 1341.52% TOTAL REVENUES 7,274,255 7,636,815 7,904,803 630,548 267,988 103.51% EXPENSES: Personnel 3,869,893 4,848,088 3,806,438 63,455 1,041,650 78.51% Supplies 615,826 456,056 650,291 (34,465) (194,235) 142.59% Contracted Services 1,785,880 2,490,395 2,416,900 (631,020) 73,495 97.05% Internal Services 271,625 209,135 199,070 72,555 10,065 95.19% TOTAL OPERATING EXPENSES 6,543,224 8,003,674 7,072,699 (529,475) 930,975 88.37% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 731,031 (366,859) 832,104 101,073 1,198,963 N/A CAPITAL OUTLAY - - 14,466 (14,466) (14,466) N/A Transfers In 184,605 60,000 13,115 (171,490) (46,885) 21.86% Transfers Out - 82,300 82,300 (82,300) - 100.00% NET TRANSFERS 184,605 (22,300) (69,185) (253,790) (46,885) N/A CHANGE IN FUND BALANCE 915,636 (389,159) 748,453 (167,183) 1,137,612 N/A BEGINNING FUND BALANCE, Jan 1 1,046,533 1,962,169 1,962,169 915,636 - 100.00% ENDING FUND BALANCE, Dec 31 1,962,169$ 1,573,010$ 2,710,622$ 748,453$ 1,137,612$ 172.32% Operating Reserves - 970,317 970,317 AVAILABLE FUND BALANCE 1,962,169$ 602,693$ 1,740,305$ FACILITIES VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 27 of 29 Communications Fund 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. The communication services were approved in the 2025-26 Biennium Budget to be budgeted in the general fund. The fund will be closed in 2025. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 1,663,767$ -$ -$ (1,663,767)$ -$ N/A Interest and other misc 23,819 3,791 3,791 (20,028) - 100.00% TOTAL REVENUES 1,687,586 3,791 3,791 (1,683,795) - 100.00% EXPENSES: Personnel 1,151,392 - - 1,151,392 - N/A Supplies 46,982 - - 46,982 - N/A Contracted Services 343,836 - - 343,836 - N/A Internal Services 4,811 - - 4,811 - N/A TOTAL OPERATING EXPENSES 1,547,021 - - 1,547,021 - N/A AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 140,565 3,791 3,791 (136,774) - 100.00% Transfers Out 2,445 (783,348) (783,348) 785,793 - N/A NET TRANSFERS (2,445) (783,348) (783,348) (780,903) - N/A CHANGE IN FUND BALANCE 138,120 (779,557) (779,557) (917,677) - N/A BEGINNING FUND BALANCE, Jan 1 641,437 779,557 779,557 138,120 - 100.00% ENDING FUND BALANCE, Dec 31 779,557$ -$ -$ (779,557)$ -$ N/A COMMUNICATIONS VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 28 of 29 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 – Premiums are budgeted for all positions as if they were filled at 100%, with many open positions to date, this amount is expected to trend below budget. Medical/Dental Claims – As a self-insured healthcare plan, costs incurred will vary year to year based on actual medical costs and health of the insured population. Industry standard expects an increase of 7% year to year whereas the city’s average increase is typically much better at approximately 3%, the last two years have seen costs higher than industry standard at 8.9% and 17.7% for 2024 and 2025 respectively. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Premiums 13,883,373$ 16,018,492$ 14,088,550$ 205,177$ (1,929,942)$ 87.95% Interest and other misc 1,038,876 520,000 1,109,240 70,364 589,240 213.32% TOTAL REVENUES 14,922,249 16,538,492 15,197,790 275,541 (1,340,702) 91.89% EXPENSES: Personnel 303,942 390,871 332,904 (28,962) 57,967 85.17% Medical/Dental Claims 12,431,421 15,903,575 14,558,741 (2,127,320) 1,344,834 91.54% Supplies 8,448 8,025 9,086 (638) (1,061) 113.22% Contracted Services 534,226 622,510 483,284 50,942 139,226 77.63% Internal Services 73,541 124,379 77,706 (4,165) 46,673 62.48% TOTAL OPERATING EXPENSES 13,351,578 17,049,360 15,461,721 (2,110,143) 1,587,639 90.69% CHANGE IN FUND BALANCE 1,570,671 (510,868) (263,931) (1,834,602) 246,937 N/A BEGINNING FUND BALANCE, Jan 1 8,946,971 10,517,643 10,517,643 1,570,672 - 100.00% ENDING FUND BALANCE, Dec 31 10,517,642$ 10,006,775$ 10,253,712$ (263,930)$ 246,937$ 102.47% Insurance Reserves 4,920,868 5,114,808 5,114,808 AVAILABLE FUND BALANCE 5,596,774$ 4,891,967$ 5,138,904$ HEALTH INSURANCE VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 4th Quarter 2025 Page 29 of 29 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. Premiums – Premiums include a transfer from the general fund to cover the expected costs. Currently with interest income much higher than expected, transfers are not needed to fund expected costs. Medical/Dental Claims – Medical costs continue to increase at an exponential rate. This plan also covers long term care costs, which continue to increase year over year as more covered retirees have required long term care. 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 Kristin Trivelas ktrivelas@rentonwa.gov or Kari Roller kroller@rentonwa.gov. 2024 2025 2025 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 208,793$ 220,000$ 237,294$ 28,501$ 17,294$ 107.86% Premiums 570,000 600,000 150,000 (420,000) (450,000) 25.00% Interest and other misc 1,017,690 100,000 972,676 (45,014) 872,676 972.68% TOTAL REVENUES 1,796,483 920,000 1,359,970 (436,513) 439,970 147.82% EXPENSES: Personnel 99,179 116,193 104,914 (5,735) 11,279 90.29% Medical/Dental Claims 1,299,572 1,495,153 1,367,134 (67,562) 128,019 91.44% Contracted Services 46,370 74,876 74,775 (28,405) 101 99.87% TOTAL OPERATING EXPENSES 1,445,121 1,686,222 1,546,823 (101,702) 139,399 91.73% CHANGE IN FUND BALANCE 351,362 (766,222) (186,853) (538,215) 579,369 N/A BEGINNING FUND BALANCE, Jan 1 20,320,818 20,672,180 20,672,180 351,362 - 100.00% ENDING FUND BALANCE, Dec 31 20,672,180$ 19,905,958$ 20,485,327$ (186,853)$ 579,369$ 102.91% Insurance Reserves 20,672,180 19,905,958 20,485,327 AVAILABLE FUND BALANCE -$ -$ -$ RETIREE HEALTHCARE VARIANCE FAVORABLE (UNFAVORABLE)