HomeMy WebLinkAbout2017 CAFR - City of RentonCity of Renton
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Comprehensive Annual Financial Report
For the year ended December 31, 2017
i
CITY OF RENTON
2017
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For Year Ended December 31, 2017
Administrative Services Department
City of Renton
1055 South Grady Way
Renton, Washington 98057
(425) 430‐6858
Website: www.rentonwa.gov
ii
ACKNOWLEDGEMENTS
Prepared by the Finance Division of the
Administrative Services Department
Administrative Services Administrator
Jan Hawn
Fiscal Services Director
Jamie Thomas
Accounting Staff
Misty Baker, Senior Finance Analyst
Sean Hollingsworth, Finance Analyst I
Hai Nguyen, Senior Finance Analyst
Kari Roller, Financial Services Manager
Kristin Trivelas, Senior Finance Analyst
Print and Mail Coordinator
Karl Hurst
Web Specialist
Beth Haglund
TABLE OF CONTENTS
DECEMBER 31, 2017
ITEM PAGE
iii
INTRODUCTORY SECTION
Letter of Transmittal ..................................................................................................................................... 1‐1
2016 Comprehensive Annual Financial Report Award ................................................................................. 1‐6
Corporate Organization Structure & Reporting Relations ............................................................................ 1‐7
FINANCIAL SECTION
Independent Auditor’s Report .................................................................................................................... 2‐1
Management Discussion and Analysis ........................................................................................................ 3‐1
Basic Financial Statements:
Government‐wide Financial Statements:
Statement of Net Position ............................................................................................................... 4‐1
Statement of Activities .................................................................................................................... 4‐2
Fund Statements:
Governmental Fund Financial Statements:
Balance Sheet .................................................................................................................................. 4‐3
Reconciliation of Balance Sheet to the Statement of Net Position ................................................. 4‐4
Statement of Revenues, Expenditures and Changes in Fund Balances ........................................... 4‐5
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities .................................... 4‐6
Proprietary Fund Financial Statements:
Statement of Net Position ............................................................................................................... 4‐7
Statement of Revenues, Expenses, and Changes in Net Position ................................................... 4‐8
Statement of Cash Flows ................................................................................................................. 4‐9
Fiduciary Fund Statements:
Statement of Fiduciary Net Position ............................................................................................. 4‐11
Statement of Changes in Fiduciary Net Position ........................................................................... 4‐12
Notes to Financial Statements:
Note 1: Significant Accounting Policies ........................................................................................ 4‐13
Note 2: Compliance and Accountability ....................................................................................... 4‐25
Note 3: Deposits and Investments ............................................................................................... 4‐27
Note 4: Property Taxes ................................................................................................................. 4‐30
Note 5: Capital Assets and Depreciation ...................................................................................... 4‐32
Note 6: Pensions ........................................................................................................................... 4‐35
Note 7: Other Post Employment Benefits .................................................................................... 4‐48
Note 8: Contingencies .................................................................................................................. 4‐51
Note 9: Risk Management ............................................................................................................ 4‐52
Note 10: Interfund Transactions ................................................................................................... 4‐55
Note 11: Long Term Debt .............................................................................................................. 4‐56
Note 12: Joint Ventures ................................................................................................................. 4‐60
Note 13: Airport Leases ................................................................................................................. 4‐63
Note 14: Capital Lease ................................................................................................................... 4‐63
Note 15: Tax Abatement ............................................................................................................... 4‐64
Note 16: Prior Period Adjustment ................................................................................................. 4‐64
Required Supplementary Information Other than MD&A:
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget to Actual
General Fund ................................................................................................................................... 5‐1
Schedule of the City’s Proportionate Share of the Net Pension Liability‐PERS Plan 1 .......................... 5‐2
TABLE OF CONTENTS
DECEMBER 31, 2017
ITEM PAGE
iv
Schedule of the City’s Proportionate Share of the Net Pension Liability ‐ PERS Plan 2/3 ..................... 5‐3
Schedule of the City’s Proportionate Share of the Net Pension Liability ‐ PSERS Plan 2 ....................... 5‐4
Schedule of the City’s Proportionate Share of the Net Pension Liability ‐ LEOFF Plan 1 ....................... 5‐5
Schedule of the City’s Proportionate Share of the Net Pension Liability ‐ LEOFF Plan 2 ....................... 5‐6
Schedule of Employer Contributions ‐ WA Department of Retirement Systems .................................. 5‐7
Schedule of Changes in Net Pension Liability and Related Ratios ‐ Firefighters’ Pension Fund ............ 5‐8
Schedule of Employer Contributions ‐ Firefighters’ Pension Fund ........................................................ 5‐9
Schedule of Investment Returns ‐ Firefighters’ Pension Fund ............................................................. 5‐10
Schedule of Funding Progress ‐ LEOFF 1 Retiree Medical Benefits………………………………. ................ ...5‐11
Combining Statements and Other Supplementary Information
Non‐Major Fund Descriptions ................................................................................................................ 6‐1
Combining Governmental Balance Sheet ‐ Nonmajor Governmental Funds
Summary by Fund Type ................................................................................................................... 6‐5
Combining Balance Sheet ‐ Nonmajor Capital Projects Funds .............................................................. 6‐6
Combining Balance Sheet ‐ Nonmajor Debt Service Funds ................................................................... 6‐7
Combining Balance Sheet ‐ Nonmajor Special Revenue Funds ............................................................. 6‐8
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ‐ Nonmajor
Governmental Funds Summary by Fund Type ................................................................................ 6‐9
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Nonmajor
Capital Projects Funds ................................................................................................................... 6‐10
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Nonmajor
Debt Service Funds ........................................................................................................................ 6‐11
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Nonmajor
Special Revenue Funds .................................................................................................................. 6‐12
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual ‐ Municipal Facilities CIP .................................................................................... 6‐13
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual ‐ Capital Improvement ....................................................................................... 6‐14
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual ‐ Community Development Impact Mitigation ................................................. 6‐15
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual ‐ Transportation Impact Mitigation ................................................................... 6‐16
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual ‐ General Debt ................................................................................................... 6‐17
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual ‐ Arterial Street .................................................................................................. 6‐18
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual ‐ Hotel/Motel Tax .............................................................................................. 6‐19
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual ‐ 1% for Art ......................................................................................................... 6‐20
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual ‐ Cable Communications Development ............................................................. 6‐21
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual ‐ Springbrook Wetlands Bank ................................................................................... 6‐22
Combining Statement of Net Position, Nonmajor Enterprise Funds ................................................... 6‐23
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ‐
Nonmajor Enterprise Funds ........................................................................................................... 6‐24
TABLE OF CONTENTS
DECEMBER 31, 2017
ITEM PAGE
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Combining Statement of Cash Flows ‐ Nonmajor Enterprise Funds .................................................... 6‐25
Combining Statement of Net Position, Internal Service Funds ............................................................ 6‐27
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position,
Internal Service Funds ................................................................................................................... 6‐28
Combining Statement of Cash Flows, Internal Service Funds .............................................................. 6‐29
Statement of Changes in Assets and Liabilities ‐ Agency Fund – Special Deposit ............................... 6‐31
STATISTICAL SECTION
Statistical Section Description ................................................................................................................ 7‐1
Financial Trends:
Table 1: Net Position by Component ................................................................................................. 7‐2
Table 2: Changes in Net Position ........................................................................................................ 7‐3
Table 3: Fund Balance of Governmental Funds ................................................................................. 7‐5
Table 4: Changes in Fund Balance of Governmental Funds ............................................................... 7‐6
Revenue Capacity:
Table 5: Water Utility Systems Revenue Information ........................................................................ 7‐7
Table 6: Principal Rate Payers ............................................................................................................ 7‐8
Table 7: Water Utility Rates ............................................................................................................. 7‐11
Table 8: General Government Tax Revenue by Source .................................................................... 7‐14
Table 9: Principal Property Tax Payers ............................................................................................. 7‐15
Table 10: Assessed Value of Taxable Property ................................................................................... 7‐16
Table 11: Property Tax Rates Direct and Overlapping Governments ................................................ 7‐17
Table 12: Property Tax Levies and Collections ................................................................................... 7‐18
Table 13: Sales Tax Collections by Sector ........................................................................................... 7‐19
Debt Capacity:
Table 14: Ratios of Outstanding Debt by Type ................................................................................... 7‐20
Table 15: Ratio of General Bonded Debt Outstanding to Assessed Value ......................................... 7‐21
Table 16: Legal Debt Margin Information .......................................................................................... 7‐22
Table 17: Per Capita General Obligation Debt ................................................................................... 7‐23
Table 18: Direct and Overlapping Governmental Activities Debt ...................................................... 7‐24
Table 19: Pledged‐Revenue Coverage for Water and Sewer Revenue Bonds ................................... 7‐25
Demographic and Economic Information:
Table 20: Demographic and Economic Statistics ................................................................................ 7‐26
Table 21: Principal Employers ............................................................................................................ 7‐27
Operating Information:
Table 22: Full Time Equivalent City Government Employees by Function ......................................... 7‐28
Table 23: Operating Indicators by Function ....................................................................................... 7‐29
Table 24: Utility Systems Supplemental Operating Information ....................................................... 7‐30
Table 25: Capital Assets Statistics by Function ................................................................................... 7‐31
2017 Comprehensive Annual Financial Report City of Renton, Washington
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2017 Comprehensive Annual Financial Report City of Renton, Washington
Introduction, 1-1
June 29, 2018
Honorable Denis Law, Mayor
Members of the Renton City Council
Residents of Renton
City of Renton, Washington
Mr. Mayor, Honorable Councilmembers, and Citizens of Renton:
We are pleased to present the City’s Comprehensive Annual Fin ancial Report for the year ended December 31,
2017. The City maintains a system of internal controls designed to provide reasonable assurance that assets
are safeguarded against loss or unauthorized use, and that financial records can be relied upon to produce
accurate and fairly represented financial statements in accordance with generally accepted accounting
principles.
Management assumes full responsibility for the completeness and reliability of the information contained in
this report. To the best of our knowledge and belief, the enclosed financial statements and all supporting
schedules are accurate in all material respects and are reported in a manner designed to present fairly the
financial position and results of operations of the City. The concept of reasonable assurance recognizes that
the cost of a control should not exceed the benefits likely to be derived, and the evaluation of the relative
costs and benefits of the control system requires estimates and judgments by management.
These financial statements have been audited by the Washin gton State Auditor’s Office. This independent
audit was conducted in accordance with generally accepted auditing standards and generally accepted
government auditing standards to provide an independent assessment of fair presentation of the City’s
financial position. The State Auditor’s Office has issued an unqualified (“clean”) opinion on the City’s financial
statements, which is included at the front of the financial statement section of this report.
Management’s Discussion and Analysis (MD&A) immediately follows the State Auditor’s report and provides a
narrative introduction, overview, and analysis to accompany the basic financial statements. This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Introduction, 1-2
PROFILE OF THE CITY
Incorporated on September 6, 1901, Renton is a city in King County, Washington. Situated 11 miles southeast
of downtown Seattle, 5 miles from SeaTac Airport, Renton straddles the southeast shore of Lake Washington,
at the junction of key north-south and east-west transportation corridors. The City’s early economy was based
on coal mining, clay production, and timber export. Today, Renton is best known as the final assembly point
for the Boeing 737 family of commercial airplanes, but it is also home to a growing number of well-known
manufacturing, technology, health care service companies and government institutions, including Boeing,
Paccar, Wizards of the Coast gaming, Ikea Home Furnishing, Valley Medical Center, Providence Health &
Services, The Seattle Seahawks headquarters, Seattle Branch of Federal Reserve Bank, and FAA Northwest
Regional office.
The City of Renton has a strong mayor form of government with an appointed Chief Administrative Officer.
The Mayor is independently elected to a four-year term. The Mayor’s job is to manage day-to-day operations,
and to lead policy development and implementation with the seven-member City Council elected at large on a
non-partisan basis.
With a population of 102,700 in 2017, Renton is the 8th largest city in the state, and the 4th largest in King
County. The City provides a full range of municipal services to an incorporated area of 24.03 square miles.
These services include police, street construction and maintenance, planning and zoning, parks and recreation,
municipal court, and general administrative services.
The City operates four utilities: water, sewer, surface water, and contracts out its solid waste collection. These
are operated very similar to a private business where the revenues from rates and other direct sources must
pay for the operational, capital, and long-term debt costs. The City has its own water supplies and does not
rely on purchased water to meet normal service demands. The City’s sewage is treated by King County, but
the City is responsible for transferring and maintaining the system to King County. The City bills Renton
residents a monthly fee for the cost of sewer treatment performed by King County.
The City operates the Maplewood Golf Course, which collects green fees, driving range fees, revenue from the
restaurant vendor, and other miscellaneous revenue. The golf course has short-term operational costs and an
active capital maintenance program.
The Renton Municipal Airport is used by small private plane operators, a floatplane company, and Boeing
initiates its maiden 737 flights from this airport. The operational costs of the airport are paid from hangar
rentals and tie-down fees. Major capital projects are paid by fees or with Federal Aviation Administration
grants.
Since the 2011-12 biennium, the City has adopted a biennial budget. The Counci l is required to adopt an initial
budget for the biennium no later than December 31 preceding the beginning of the fiscal year on January 1.
The City of Renton maintains budgetary controls to ensure compliance with legal prov isions embodied in the
budget. All activities are appropriated through the budget process and published in the City’s Budget
document. The City Council must adopt an ordinance to increase or decrease total appropriations in a Fund.
The Mayor has the authority to move appropriations within a Fund.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Introduction, 1-3
A more thorough discussion of the City’s accounting policies can be found under the Summary of Significant
Accounting Policies in the Notes to the Financial Statements.
ECONOMIC CONDITION AND OUTLOOK
Renton’s economy continues to recover at a steady pace. In terms of employment, the Puget Sound region
has outpaced national results in 2017 with an overall employment growth rate of 2.9% (versus 1.5%
nationwide). Employment growth during this time frame is largely attributable to: 1. Boeing’s production
ramp-up of 737 from 42 to 47 planes per month during 2014-2016 and; 2. the expansion of service industry
jobs in Renton. As expected, there was slower job growth in 2015 and 2016 now that Boeing has completed
its employment ramp-up. Employment in Renton is expected to continue to have steady growth of 1.7
percent, through 2020.
The City of Renton is following the regional trend of a strong recovery in the housing sector, with assessed
value increasing 11.2% for existing homes in 2017. Residential building permits are expected to remain steady
with 1,000 new units expected by 2020, leading to an expected annual population growth of 1.6 percent.
The City of Renton saw strong sales and retail tax revenue growth in 2017 with taxable sales 4.3% over 2016.
The construction sector has fully recovered and has been increasing since 2014 with an 83 percent increase
since 2014, which was driven by several large new construction project s. The services and general retail
sectors also remain strong at 4.4 percent and 5.7 percent growth, respectively, in 2017.
The Seattle Seahawks’ headquarters/training facility is located within the City and is the second -largest facility
in the NFL at 200,000 square feet, located along the waterfront of Lake Washington. The training facility sits 3
miles north of The Landing, a shopping center that was fully completed in early 2010. Currently, the shopping
center occupancy is at 99% and approximately $1.1 million in sales tax was generated from The Landing in
2017, a 44% increase over 2011.
Perhaps the most significant economic impact for the City is the wide diversity of development activity and
private investment that is currently taking place within the City. I n the South Lake Washington area, just north
of The Landing, a new waterfront Hyatt Regency hotel with 355 rooms and 750,000 square feet of class A
office space opened their doors; IKEA completed a new 400,000 square foot state-of-the-art retail addition in
2016; and Kaiser Permanente has started moving into their new 29-acre headquarters adding 1,200 new job in
Phase II with an expected 2,300 total jobs on-site when fully moved in.
Overall, the economic outlook for Renton remains strong for 2018 and beyond; a continuing increase in
housing permits, a lower unemployment rate, and large-scale capital investments within the City will support a
healthy growth in taxable retail sales and an attractive center for healthcare, retail, and manufacturing.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Introduction, 1-4
LONG-TERM FINANCIAL PLANNING
Unrestricted fund balance (the aggregate of committed, assigned, and unassigned components of fund
balance) in the general fund was 46 percent of the total general fund expenditures, compared to 36 percent
in 2012. In addition to unrestricted fund balance in the general fund, the City Council has accumulated fund
balances of $16.8 million for catastrophic reserves, anti-recessionary reserves, and sales tax annexation credit
transition in the City’s Insurance Fund.
The ramp-up of these fund balances was a direct result of an enhanced stabilization fund policy, which was
originally adopted in late-2013. During the great recession the City depleted much of its reserves and although
several economic factors are improving, the City still faces several short and long-term constraints. The rate of
healthcare and salary costs and deferred maintenance on City buildings continue to increase at a faster rate
than revenues. In addition, the 10-year sales tax annexation credit will sunset in mid-2018, which currently
provides approximately $2.4 million in sales tax revenue to the general fund. The enhanced stabilization fund
policy will help the City bridge the ever increasing gap between operating expenditures and revenues.
As part of the enhancements to the City’s stabilization policy, the Coun cil also adopted a reserve fund for
Economic Development, which currently has accumulated a $2.5 million balance. The reserve fund will help
the City leverage Local Revitalization Financing (LRF) funds made available by the State of Washington. The
LRF program can make available up to $500,000 to be spent on “revitalization areas”, but the funding requires
a local match, which is why the Council has created a reserve fund. In the long -term, the LRF program will
help spur sustainable economic activity in an area that currently lags behind the rest of the City.
As part of the 2015-2016 biennial budget, the City Council adopted a Business and Occupation (B&O) T ax,
effective January 1, 2016. The B&O tax was structured in a way to minimize the impact to the business
community, while at the same time generating enough sustainable revenue for funding General Fund
operations into the future, without significant decreases to basic City services. The B&O tax generated $9.6
million in additional general fund revenue for 2017 and is estimated to generate $7.6 million in 2018.
The City has been very responsible and responsive in balancing the services the community needs with the
changing mixture and level of resources. In addition to strong financial policies, the City has also continued to
expand its economy and pursue progressive economic development strategies to maintain a thriving and
sustainable economy.
RELEVANT FINANCIAL POLICIES
The City has adopted a comprehensive set of financial policies . In 2013 the City Council made amendments to
its policies to enhance its stabilization policy and begin ramping up reserves for future general fund funding
gaps, long-term economic development initiatives, capital commitments, equipment reserves, catastrophic
and anti-recessionary reserves, and general operating cash flow requirements.
Due to strong financial policies and management, the City of Renton has maintained a LTGO bond rating of
AA+ (reaffirmed by both Fitch and Standard and Poor’s in early 2015), and a AA+ revenue bond rating from
Fitch Ratings (July 2014).
2017 Comprehensive Annual Financial Report City of Renton, Washington
Introduction, 1-5
OTHER INFORMATION
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reportin g to the City of Renton for its comprehensive annual
financial report for the fiscal year ended December 31, 2016. The City has a long history of achieving this
prestigious award. In order to be awarded a Certificate of Achievement, a government must pub lish an easily
readable and efficiently organized comprehensive annual financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive
annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are
submitting it to the GFOA to determine its eligibility for another certificate.
The dedicated staff of the Finance Division work hard each day to ensure that the City’s financial transactions
are processed accurately and records are maintained orderly and in conformance with policies and
procedures. Special thanks are due to Misty Baker, Senior Financial Analyst, who served as the CAFR project
lead. Further appreciation is extended to the City Council and City Management for their support in conducing
financial operations of the City in a sound and progressive manner, and in conformance with internal and
external requirements.
For more information regarding the City’s budget please refer to the city’s website for 2017-2018 adopted
budget as well as monthly sales tax and budgetary financial reports.
Respectfully,
Jamie Thomas
Fiscal Services Director
GovernmentFinanceOfficersAssociationCertificateofAchievementforExcellenceinFinancialReportingPresentedtoCityofRentonWashingtonForitsComprehensiveAnnualFinancialReportfortheFiscalYearEndedDecember31,2016c3L4p.ExecutiveDirector/CEO2017 Comprehensive Annual Financial ReportCity of Renton, WashingtonIntroduction, 1-6
ADMINISTRATIVE SERVICES
Jan Hawn, Administrator
425‐430‐6858
RENTON CITIZENS
MAYOR
Denis Law
425‐430‐6500
MUNICIPAL COURT JUDGE
Terry Jurado
425‐430‐6550
CITY COUNCIL
Armondo Pavone, President
Don Persson, Randy Corman, Ruth
Perez, Carol Ann Witschi, Ryan
McIrvin
425‐430‐6500
CHIEF ADMINISTRATIVEOFFICER
Robert Harrison
425‐430‐6500
COMMUNITY SERVICES
Kelly Beymer, Administrator
425‐430‐6600
PUBLIC WORKS
Gregg Zimmerman, Administrator
425‐430‐7394
EXECUTIVE
COMMUNITY AND ECONOMIC
DEVELOPMENT
Chip Vincent, Administrator
425‐430‐6580
POLICE
Kevin Milosevich, Chief
425‐430‐7503
HUMAN RESOURCES & RISK
MANAGEMENT
Ellen Bradley‐Mak, Administrator
425‐430‐7650
Facilities
Jeffrey Minisci, Director
Renton History Museum
Elizabeth Stewart, Manager
Neighborhoods, Resources,
and Events
Carrie Nass, Manager
Maintenance Services
Michael Stenhouse, Director
Utility Systems
Lys Hornsby, Director
Transportation Systems
Jim Seitz, Director
Economic Development
Cliff Long, Director
Long Range Planning
Angie Mathias, Manager
Planning
Mayor's Office
City Clerk / Cable Manager
Jason Seth, City Clerk
Communications
Preeti Shridhar, Deputy Public
Affairs Administrator
Support Operations Bureau
Field Operations Bureau
Emergency Management
Deborah Needham, Director
Human Resources
Kim Gilman, Manager
Risk Management
Gary Lamb, Manager
Benefits
VACANT, Manager
Finance
Jamie Thomas, Director
Information Technology
Mehdi Sadri, Director
Staff Services
Special Operations
Investigations
Administrative
Services
Patrol Services
Patrol Operations
CITY ATTORNEY
Shane Maloney, Administrator
425‐255‐8678
Parks & Golf Course
Cailin Hunsaker, Director
Human Services
Guy Williams, Manager
Parks Planning & Natural
Resources
Leslie Betlach, Director
Recreation
Mary Jane Van Cleave, Director Jennifer Henning, Director
Airport
Harry Barrett, Jr., Manager Building Official
Craig Burnell
2017 Comprehensive Annual Financial Report City of Renton, Washington
Introduction, 1-7
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2017 Comprehensive Annual Financial Report City of Renton, Washington
Introduction, 1-8
Office of the Washington State Auditor
Pat McCarthy
INDEPENDENT AUDITOR’S REPORT ON FINANCIA L STATEMENTS
June 27, 2018
Mayor and City Council
City of Renton
Renton, Washington
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund and the aggregate remaining fund information of the City of Renton,
King County, Washington, as of and for the year ended December 31, 2017, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
Management’s Resp onsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the City’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund
and the aggregate remaining fund information of the City of Renton, as of December 31, 2017, and the
respective changes in financial position and, where applicable, cash flows thereof for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and required supplementary information listed in the table of contents be
presented to supplement the basic financial statements. Such information, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board who considers
it to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The combining statements and other supplementary
information are presented for the purposes of additional analysis and is not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the financial statements.
This information has been subjected to auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated, in
all material respects, in relation to the basic financial statements taken as a whole.
Our audit was conducted for the sole purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements as a whole. The Introductory and Statistical
Sections are presented for purposes of additional analysis and are not a required part of the basic financial
statements of the City. Such information has not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on it.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we will also issue our report dated June 27, 2018,
on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements and other
matters. That report will be issued under separate cover in the City’s Single Audit Report. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and
compliance.
Sincerely,
Pat McCarthy
State Auditor
Olympia, WA
MANAGEMENT’S DISCUSSION AND ANALYSIS
The City of Renton’s management offers this Management’s Discussion and Analysis (MD&A), which is
an overview and analysis of the City of Renton’s financial activities for the year ended December 31,
2017. To best understand the City’s financial activities, we encourage readers to consider the
information in this discussion and analysis in conjunction with information provided in the letter of
transmittal and the basic financial statements.
FINANCIAL HIGHLIGHTS
•As of December 31, 2017, the City of Renton’s total assets and deferred outflows of resources
exceed liabilities and deferred inflows of resources by $933 million. Of this amount, $151
million represents unrestricted net position, which may be used to meet the government’s
ongoing obligations to citizens and creditors.
•The City of Renton’s total net position increased $53.6 million, due to accumulation of reserves,
capital asset acquisitions, and the reduction of long‐term debt in both the governmental and
business‐type activities. At the close of the current fiscal year, the City of Renton’s
governmental funds reported combined fund balances of $82.3 million, an increase of $18.5
million from 2016. This increase is due to revenues exceeding expenditures in the general fund
and an accumulation of unspent municipal facility capital project funds.
•Approximately 35 percent ($29 million) of the total governmental fund balance is available for
spending at the City’s discretion (unassigned fund balance).
•Total unrestricted fund balance (the total of committed, assigned and unassigned fund balance
components) for the general fund was $37.9 million, which is approximately 46 percent of
general fund 2017 expenditures.
•The City of Renton’s total outstanding long‐term debt decreased by $9.6 million during the
current fiscal year because current resources and grants are being used to finance current
operations and capital projects. The City has continued to pay down its current debt
obligations without issuance of new debt.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis provided here are intended to serve as an introduction to the City’s basic
financial statements. The basic financial statements consist of three components: (1) government‐
wide financial statements, (2) fund financial statements, and (3) notes to the basic financial
statements.
Government‐wide Financial Statements
The government‐wide financial statements provide both long‐term and short‐term information about
the City’s overall financial status, in a manner similar to a private‐sector business.
2017 Comprehensive Annual Report City of Renton, Washington
Management's Discussion and Analysis, 3-1
Statement of Net Position – The first of these government‐wide statements is the statement of net
position. The statement of net position presents the City’s assets, liabilities, and deferred
inflows/outflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating.
Statement of Activities – The second government‐wide statement is the statement of activities, which
reports how the City’s net position changed during the current fiscal year. All changes in net position
are reported as soon as the underlying event giving rise to the change, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported for some items that will only result in
cash flows in future fiscal periods (ex. uncollected taxes and compensated absences). An important
purpose of the design of the statement of activities is to show the financial reliance of the City’s
distinct activities or functions on revenues provided by the City’s taxpayers. Another indicator to
consider when evaluating the financial position of the City includes changes to the property tax base,
general economic conditions as demonstrated through business licenses fees or sales tax revenue, and
the condition of the City’s infrastructure (roads, drainage systems, bridges, and water infrastructure).
Both of the government‐wide financial statements distinguish governmental activities of the City
(activities principally supported by taxes and intergovernmental revenue), and business‐type activities
of the City (activities that are intended to recover all, or a significant portion, of their costs through
user fees and charges). Governmental activities include general government, judicial, public safety,
utilities, transportation, economic environment, health and human services, and culture and
recreation. The equipment rental and insurance internal service funds are also reported as
governmental activities. The business‐type activities include the waterworks utility, solid waste,
airport, and golf course funds. The government‐wide financial statements can be found on page 4‐1
and 4‐2 of this report.
Fund Financial Statements
The City uses fund structure to ensure and demonstrate fiscal integrity and compliance with finance‐
related legal requirements. A fund is a group of related accounts used to maintain control over
resources that have been segregated for specific activities and objectives. There are three types of
funds: governmental, proprietary, and fiduciary. The fund financial statements focus on major funds
separately while all others are combined into a single aggregated presentation. Individual data for
non‐major funds is presented in a following section, Combining Statements.
Governmental Funds – The governmental funds are used to account for the same functions reported
as governmental activities in the government‐wide financial statements. However, unlike the
government‐wide statements, the focus of governmental fund financial statements is on near‐term
inflows and outflows of available financial resources and on balances of resources available at the end
of the fiscal year. Such information is useful in evaluating whether there are more or less financial
resources that can used in the near future to finance City services.
2017 Comprehensive Annual Report City of Renton, Washington
Management's Discussion and Analysis, 3-2
Because the focus of governmental fund financial statements is a narrower view than that of the
government‐wide financial statements, it is useful to compare similar information in order to gain a
better understanding of the long‐term impact of the government’s near‐term financing decisions. The
Reconciliation of the Balance Sheet and Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund reconciles to the differences between the governmental fund statements and the
governmental activities column in the government‐wide statements.
The City maintains thirteen individual governmental funds. Information for the City’s major
governmental funds (general and municipal facilities CIP) are presented separately in the
governmental fund balance sheet and the governmental fund statement of revenues, expenditures,
and changes in fund balance. Data from the other eleven funds are combined into a single aggregated
presentation. Individual fund data for each of these non‐major governmental funds is presented in the
combining statements section of this report.
The City maintains budgetary controls over its governmental funds. Budgetary controls ensure
compliance with legal provisions embodied in the annual appropriated budget. Governmental fund
budgets are established in accordance with state law and are adopted on a fund level. A budgetary
comparison statement has been provided for the general fund to demonstrate compliance with this
budget. The basic governmental fund financial statements can be found on pages 4‐3 and 4‐5 of this
report.
Proprietary Funds – The proprietary fund statements present information for two types of funds.
Enterprise funds operate as business‐type activities in the government‐wide statements and include
the waterworks utility, solid waste, golf course, and airport funds. The other proprietary fund types are
internal service funds. Internal service funds are used to report activities that provide supplies and
services to various City departments and to allocate the associated costs of providing these services to
the various governmental and enterprise functions. The revenues and expenses of internal service
funds that support governmental activities are eliminated in the government‐wide statements and the
remaining activity is combined within the governmental activities in the government‐wide statements.
The proprietary fund statements provide the same information as the government‐wide financial
statements, only in more detail. The City reports the activity of its two major enterprise funds,
waterworks utility (water, wastewater, and storm water) and solid waste separately. Information from
the remaining non‐major enterprise funds are combined and presented in a single, aggregated column
in the fund statements. Internal service funds are also aggregated and reported separately in this
section. The basic proprietary fund financial statements can be found on pages 4‐7 through 4‐10 of
this report.
Fiduciary Funds – Fiduciary Funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reported in the government‐wide financial
statements because the resources of those funds are not available to support the City’s own
operations. The accounting used for fiduciary funds is much like that used for proprietary funds. The
fiduciary fund financial statements can be found on pages 4‐11 and 4‐12 of this report.
2017 Comprehensive Annual Report City of Renton, Washington
Management's Discussion and Analysis, 3-3
NotestotheFinancialStatements
Thenotesprovideadditionalinformationthatisessentialtoafullunderstandingoftheinformation
providedandareanintegralpartofthegovernmentͲwideandfundfinancialstatements.Thenotes
tothefinancialstatementscanbefoundpages4Ͳ13through4Ͳ64ofthisreport.
Otherinformation
Inadditiontothebasicfinancestatementsandaccompanyingnotes,thisreportalsopresents:
1. RequiredSupplementalInformation(RSI)
RSIprovidesbudgetarycomparisonsforthegeneralfundaswellastheCity’sfundingprogressfor
theFirefighters’PensionTrustFundandOtherPostͲEmploymentBenefits(LEOFF1Retiree
Medical).RSIcanbefoundonpage5Ͳ1through5Ͳ11ofthisreport.
2. CombiningStatements
Thecombiningstatementsprovideadditionaldetailforothergovernmentfunds,internalservice
funds,andfiduciaryfunds.Combiningandindividualfundstatementsandschedulescanbefound
onpage6Ͳ1through6Ͳ31ofthisreport.
3. StatisticalInformation
Thissectionincludesunauditedtrendsanddemographicinformation.Thestatisticalsectioncanbe
foundonpage7Ͳ1through7Ͳ31ofthisreport.
GOVERNMENTͲWIDEFINANCIALANALYSIS
StatementofNetPosition
ThefollowingisasummaryoftheCity’snetpositionasofDecember31,2017,withcomparisonto
2016:
2017 2016 2017 2016 2017 2016
Currentassets 146,161,947$116,631,252$86,666,175$77,138,349$232,828,122$193,769,601$
Capital assets 484,573,780478,960,485307,804,835307,693,107792,378,615786,653,592
OthernonͲcurrentassets 52,616,27945,400,562120,79883,99552,737,07745,484,557
TOTALASSETS 683,352,006640,992,299394,591,808384,915,4511,077,943,8141,025,907,750
DeferredOutflows ofResources 5,191,3887,243,9971,877,5982,404,4397,068,9869,648,436
LongͲtermliabilities 93,744,324102,405,21633,812,96636,934,845127,557,290139,340,061
Otherl iabilities 13,444,68911,925,7564,635,0074,601,92318,079,69616,527,679
TOTALLIABILITIES 107,189,013114,330,97238,447,97341,536,768145,636,986155,867,740
DeferredInflowsofResources 5,721,668512,546979,849130,2856,701,517642,831
NETPOSITION:
466,996,814453,278,700281,531,560279,506,339748,528,374732,785,039
Restricted 31,304,50118,939,9682,810,1452,909,57834,114,64621,849,546
Unrestricted 77,331,39861,174,11072,699,87963,236,920150,031,277124,411,030
TOTALNETPOSITION 575,632,713$533,392,778$357,041,584$345,652,837$932,674,297$879,045,615$
NetInvestmentinCapital Assets
Governmental Activities Business Ͳtype Activities
CONDENSED STATEMENTOF NETPOSITION
Total
Asnotedearlier,thechangeinnetpositionovertime,mayserveasausefulindicatorofagovernment’s
financialsituation.Atthecloseofthemostrecentfiscalyear,assetsanddeferredoutflowsofresources
exceededliabilitiesanddeferredinflowsofresourcesby$932million,a$53.6millionincreaseover2016.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Management's Discussion and Analysis, 3-4
Net Position – Net Investment in Capital
Assets. $748 million (80%) of total net
position reflects the City’s investment in
capital, net of related debt that was used
to acquire those assets. The City uses
these assets to provide a variety of
services to citizens. Accordingly, these
assets are not available for future
spending. Although investment in capital
assets are reported net of related debt, it
should be noted that the resources used
to repay this debt must be provided from
other sources, since the capital assets
themselves cannot be used to liquidate
these liabilities.
Net Position – Restricted. Total restricted
net position accounts for $34 million of
the City’s net position, which is a $12.3
million increase (56%) from 2016. This
increase is a result of a $6.7 million
increase in OPEB liability and an
increased balance of restricted revenue
sources that have not been spent (REET,
KC Parks Levy, Impact Mitigation Fees).
Many of the restricted revenue sources
have been budgeted for capital projects
that have been carried forward for
expenditure in 2018.
Net Position – Unrestricted. The
remaining $151 million of net position is
unrestricted may be used to meet the
government’s ongoing obligations for
governmental and business type
activities ($78 million and $73 million,
respectively).
At the end of the current fiscal year, the
City reports a positive net position in all
net position categories, for both
governmental activities and business‐
type activities. The same held true for
the prior fiscal year. Further, all
categories of net position increased in the current fiscal year.
2017 Comprehensive Annual Report City of Renton, Washington
Management's Discussion and Analysis, 3-5
Statement of Activities and Change in Net Position
The following is a condensed summary statement of activities and change in net position as of
December 31, 2017, with comparison to 2016.
CONDENSED STATEMENT OF ACTIVITIES
2017 2016 2017 2016 2017 2016
Revenues:
Program revenues:
Charges for services 22,132,787$ 22,835,685$ 78,977,661$ 75,752,373$ 101,110,448$ 98,588,058$
Operating grants and contributions 5,984,222 8,226,834 1,213,388 8,400,008 7,197,610 16,626,842
Capital grants and contributions 10,167,007 10,913,636 7,664,875 12,559,755 17,831,882 23,473,391
Taxes and other general revenues:‐
Property taxes 24,669,058 37,105,988 ‐ ‐ 24,669,058 37,105,988
Sales taxes 33,381,395 32,933,987 ‐ ‐ 33,381,395 32,933,987
Other Taxes 37,328,687 32,500,664 ‐ ‐ 37,328,687 32,500,664
Other general revenue 3,269,074 3,201,190 531,557 350,982 3,800,631 3,552,172
Total revenues 136,932,230 147,717,984 88,387,481 97,063,118 225,319,711 244,781,102
Expenses:
General government 11,619,780 10,230,923 ‐ ‐ 11,619,780 10,230,923
Judicial 2,631,350 2,501,487 ‐ ‐ 2,631,350 2,501,487
Public safety 34,970,381 49,272,668 ‐ ‐ 34,970,381 49,272,668
Utilities 686,356 691,798 ‐ ‐ 686,356 691,798
Transportation 18,369,818 19,560,699 ‐ ‐ 18,369,818 19,560,699
Economic and natural environment 8,280,445 7,578,069 ‐ ‐ 8,280,445 7,578,069
Health and human services 2,210,690 2,098,190 ‐ ‐ 2,210,690 2,098,190
Culture and recreation 14,307,593 12,999,863 ‐ ‐ 14,307,593 12,999,863
Interest on long‐term debt 1,146,722 948,685 ‐ ‐ 1,146,722 948,685
Airport ‐ ‐ 3,178,004 2,974,582 3,178,004 2,974,582
Golf Course ‐ ‐ 2,386,006 2,173,590 2,386,006 2,173,590
Solid Waste ‐ ‐ 19,367,124 16,850,054 19,367,124 16,850,054
Waterworks Utility ‐ ‐ 51,849,388 53,960,170 51,849,388 53,960,170
Total expenses 94,223,135 105,882,382 76,780,522 75,958,396 171,003,657 181,840,778
42,709,095 41,835,602 11,606,959 21,104,722 54,316,054 62,940,324
Transfers 218,212 173,917 (218,212) (173,917) ‐ ‐
Special Items ‐ (51,192,697) ‐ ‐ ‐ (51,192,697)
Increase (decrease) in net position 42,927,307 (9,183,178) 11,388,747 20,930,805 54,316,054 11,747,627
Net position ‐ beginning 533,392,778 544,800,022 345,652,837 325,256,881 879,045,615 870,056,903
Prior Period Adjustment (687,372) (2,224,066) ‐ (534,849) (687,372) (2,758,915)
Net position ‐ ending 575,632,713$ 533,392,778$ 357,041,584$ 345,652,837$ 932,674,297$ 879,045,615$
Governmental Activities Business ‐type Activities Total
Increase in net position before transfers
and special items
Citywide revenue. Total revenue (governmental and business‐type) decreased by $19.4 million, or 8
percent. Most which is attributed to a $12.5 million decrease in property tax (Governmental Activities)
and a $12.1 decrease in operating and capital contributions (Business‐type Activities). The property tax
decline is a result of the creation of the Renton Regional Fire Authority in 2016. As promised,
beginning in 2017 the City decreased its levy by approximately $1.00/1,000 in assessed valuation to
help defray the cost of the new Fire Benefit Charge which is a new levy assessed by the Renton
Regional Fire Authority. This resulted in a $12.5 million decrease in 2017.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Management's Discussion and Analysis, 3-6
Additionally, the City will decrease its tax levy amount by an additional $5.5 million for the 2018 tax
year. The $12.1 million decrease in operating and capital contributions is a result of a decrease in grant
revenue for three grant funded projects: Talbot Hill Sewer Replacement (capital grant), Cascade
Interceptor (capital grant), and the Cedar River Gravel Removal (operating grant). These decreases
were offset by a $4 million increase in Business and Occupation (B&O) tax. The City implemented B&O
tax effective January 1, 2016, and realized the increased revenue effects in 2016. However, business
outreach and education extended into 2017 and the City realized new revenue as a result of this
enhanced outreach and education effort.
Citywide expenses. Expenses totaled $171 million in 2017, a $10.8 million decrease from 2016.
Governmental activities decreased by $11.7 million (or 11 percent) while business activities increased
by $1 million (or .4 percent). The decrease in governmental expense is related to the transfer of fire
operations to the Renton Regional Fire Authority in mid‐2016. 2017 was the first year the City did not
incur any public safety expenditures related to fire protection services, which are now provided by the
Renton Regional Fire Authority. The increase in business‐type expenses was due to normal increases
in operating costs, but offset by completion of the large, Cedar River Gravel Removal project, in the
Waterworks Utility Fund.
Change in net position. The resulting change in net position was an increase in 2017 by $54.3 million: a
$42.9 million increase from governmental activities and $11.4 million increase from business‐type
activities. The increases in governmental activities and business‐type activities is related to revenue
and expenditure variances explained above.
Governmental Activities Analysis
Governmental activities cost a total of $93 million in 2017 against program generated revenue
(excluding taxes and other general revenue) of $38.2 million. Program revenues support 41 percent of
the governmental program costs, while the remaining 59 percent of governmental program costs are
supported by general revenues (taxes and other general revenue). Compared to 2016, governmental
activities cost $105 million ($12 million decrease) and program revenues totaled $42 million ($1.1
million increase).
2017 Comprehensive Annual Report City of Renton, Washington
Management's Discussion and Analysis, 3-7
Chart 1 portrays the extent that the cost of each of the City’s governmental programs is supported by
its own program generated revenue (fees, intergovernmental revenues, and contributions specifically
related to that program). Public safety accounts for 38 percent of the total governmental activity
costs, but generates the second lowest percentage of program revenues compared to its program
costs (8 percent). Conversely, judicial recovered all of their costs in 2017 through program revenues,
which consist of traffic citations, parking citations, criminal charges, miscellaneous court fees, and red
light camera fees.
Chart 2 depicts the source breakdown for
all revenues that fund governmental
activities. Approximately 69 percent of the
total governmental activity revenues come
from taxes. The City’s largest governmental
revenue source is other taxing sources (27
percent), which consists of Business and
Occupation Tax and Excise Tax. The second
largest source is retail sales tax (24
percent). Property tax accounts for 22
percent of the City’s general governmental
revenue, which is a decrease from 25% in
2016. Again, this decrease was the result of
the City’s promise to reduce its property
tax levy by $1.00/$1,000 in assessed
valuation with the passage, by voters, to
implement a Regional Fire Authority. The
remaining 3 percent, other general revenue, accounts for interest, and miscellaneous revenue. While
program specific charges for services, grants and contributions generate 28 percent of total revenue
for general governmental activities, the City is largely dependent on tax revenue and as a result, the
general economy has a major impact on the City’s revenue streams.
2017 Comprehensive Annual Report City of Renton, Washington
Management's Discussion and Analysis, 3-8
Business‐Type Activities Analysis
Since the primary source of revenue for business‐type activities is user fees and charges, there is much
less disparity between program costs and related program revenue. Chart 3 shows the expense of
each of the City’s
business‐type program
along with each programs’
revenue (fees and
intergovernmental
revenues specifically
related to that program).
The Waterworks Utility
generated $56 million in
fees for services, and the
operating and debt service
costs were $51.8 million.
In addition, the
waterworks utility
received $8.7 million in
grants, contributions, and capital contributions from developers, for a combined increase in net
position of $11 million. The operating balance is necessary for future planned system infrastructure
replacements, repairs, and enhancements. Compared to 2016, the waterworks utility had a $2.5
million increase operating revenue collections and a $2.1 decrease operating expenses. The large
operating expense decrease was directly related to the completion of a large non‐capital maintenance
project, which was offset by a decrease in operating grants which helped fund the project in 2016.
The Solid Waste Utility generated $17.8 million in total revenue and incurred $19.4 million in program
expenses, resulting in a decrease in net position of $1.5 million.
The Airport generated a total of $2.8 million in revenue from charges for services and $3.1 million in
expenses 2017, which resulted in a $300,000 decrease in net position.
The Golf Course generated a total of $2.4 million in green fees, driving range charges, and other user
fees. The total expenses for the Golf Course
were $2.2 million. The Golf Course had a
$200,000 decrease in net position for the year.
Chart 4 illustrates the source of revenue for
Business‐type activities; which are supported
primarily from charges for services. Charges
for services generated $79 million, or 91
percent, of the total revenue sources, while
grant revenue and contributions generated
$8.8 million, or 9 percent, of the total revenue
sources. This is a $3.3 million (4 percent)
increase in charges for services and a $12
2017 Comprehensive Annual Report City of Renton, Washington
Management's Discussion and Analysis, 3-9
million (53 percent) decrease in grants and contributions from 2016. The large decrease in grants and
contributions is related to a decrease in grant revenue received on a large waterworks grant funded,
maintenance project in 2016.
FUND FINANCIAL ANALYSIS
Governmental Funds
The governmental fund statements provide information on near‐term inflows, outflows, and balances
of spendable resources. Such information is useful in assessing the City’s ability to meet financing
requirements in the near term. In particular, unassigned fund balance may serve as a useful measure
of a government’s net resources available for spending at the end of the fiscal year.
General Fund – At the end of the fiscal year, the City had a fund balance of $39.3 million, which is an
increase of $9.3 million from 2016. The increase is due to general economic improvements and the
implementation of a new Business and Occupation tax, which have provided increases over 2016 in
taxes (up 14 percent). Overall, general fund revenues decreased $14 million (12 percent) over 2016
due to the reduced property tax levy, but this decrease in revenue was offset by $22.5 million in
reduced general fund expenditures from 2016 now that the City is no longer supporting fire services.
Municipal Facilities CIP Fund – this fund accounts for all of the City’s parks and facilities related capital
projects (new construction, major maintenance, and improvements). Overall revenue increase $3.8
million over 2016 which was attributed to increased Real Estate Excise Tax collections ($2.3 million)
and a large State grant received for the construction of Sunset Park ($1.3 million).
Capital Improvement Fund – this fund accounts for all of the street, roadway, and transportation
related capital projects and programs. Overall revenue decreased $5 million (48 percent) over 2016
and this was attributed to the completion of several large grant‐funded transportation projects that
took place during 2016, which included: Logan Avenue, South 7th Street, NE 31st Street Bridge
Replacement, Main Avenue South Conversion, and Sunset Lane.
Proprietary Funds
The proprietary fund financial statements provide the same type of information found in the
government‐wide financial statements, but in more detail. The analysis for the proprietary funds is
found within the business‐type activities analysis and discussion above. The proprietary fund
statements also include a column for internal services fund activities in aggregate. These activities are
consolidated with general governmental activities in the government‐wide statements.
GENERAL FUND BUDGETARY HIGHLIGHTS
The City uses a biennial budget process that adopts two one‐year budgets at one time. 2017 was the
first year of the 2017‐18 biennium. The original 2017 general fund adopted budget was $94 million
and the final adjusted budget was $105 million. The increase was a combination of several items, but
most notably: $5.6 million transferred from the general fund to City reserve funds, $1 million increase
in street overlay projects, $1.3 million to purchase new police take‐home vehicles, $800,000 for
restricted drug seizure assets and $700,000 for the Sunset Lane Redevelopment project.
2017 Comprehensive Annual Report City of Renton, Washington
Management's Discussion and Analysis, 3-10
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City of Renton’s investment in capital assets, including construction in progress and net of
accumulated depreciation, for governmental and business‐type activities amounts to $792 million as
of December 31, 2017, compared to $787 million in 2016.
CAPITAL ASSETS
(Net of Depreciation/Amortization)
2017 2016 2017 2016 2017 2016
Land and Land Improvements 210,672,191$ 204,962,458$ 6,150,056$ 6,150,056$ 216,822,247$ 211,112,514$
Capital Assets 253,220,774 256,203,041 286,274,853 285,476,368 539,495,627 541,679,409
Intangible Assets 346,374 416,195 1,043,377 1,089,090 1,389,751 1,505,285
Construction in Progress 20,334,441 17,378,791 14,336,549 14,977,593 34,670,990 32,356,384
Total 484,573,780$ 478,960,485$ 307,804,835$ 307,693,107$ 792,378,615$ 786,653,592$
Governmental Activities Business‐Type Activities Total
The increase of $5 million is attributed to a couple of large governmental capital projects. These
largest projects include new construction for the new Sunset EIS Park ($1.4 million), park property
purchase ($980,000), Sunset Lane Roadway Improvements ($4.9 million), and Main Avenue South
Downtown Road ($2.7 million). These increases were offset by $6.2 million in work‐in‐progress
reclassifications.
As of December 31, 2017, depreciable capital assets for governmental activities were 39 percent
depreciated, almost the same rate as 2016 (36 percent). This comparison indicates the City is
replacing its assets at a slightly greater rate than they are depreciating, which is a positive indicator.
More detailed capital asset information is provided in Note 5 of the Notes to Financial Statements.
Debt Administration
The City’s total outstanding debt at December 31, 2017, was $127.5 million, a $10.6 million (7 percent)
decrease from the prior year which is attributed to the City’s continued commitment to paying down
debt. More detailed debt information is provided in Note 11 of the Notes to Financial Statements.
There was a $3.6 million decrease in employee benefits, which was attributed to the net decrease in
the City’s net pension liability of the State Sponsored pension plan.
2017 2016 2017 2016 2017 2016
General Obligation Bonds 27,385,000$ 31,730,000$ ‐$ ‐$ 27,385,000$ 31,730,000$
Revenue Bonds ‐ ‐ 24,413,168 26,090,000 24,413,168 26,090,000
Other Long‐Term Debt 31,052,617 32,220,614 2,244,083 2,639,258 33,296,700 34,859,872
Unamortized Premium (Discount)1,708,663 1,137,371 506,191 (542,489) 2,214,854 594,882
Employee Benefits 33,598,044 36,370,849 6,649,524 7,538,520 40,247,568 43,909,369
Total 93,744,324$ 101,458,834$ 33,812,966$ 35,725,289$ 127,557,290$ 137,184,123$
Governmental Activities Business‐Type Activities
LONG‐TERM DEBT
Total
The City’s AA+ general obligation debt rating was reaffirmed by both Fitch and Standard in early 2015
and maintains its AA+ revenue bond rating from Fitch (July 2014).
2017 Comprehensive Annual Report City of Renton, Washington
Management's Discussion and Analysis, 3-11
REQUESTS FOR FINANCIAL INFORMATION
This financial report is designed to provide our citizens, creditors, investors, and others interested in
the City’s finances with a general overview of the City’s finances and to show the City’s accountability
for financial resources it receives. If you have any questions about this report or need additional
information, please contact Jan Hawn, Administrative Services Administrator, 1055 South Grady Way,
Renton, WA 98057 or visit our web site at www.rentonwa.gov.
2017 Comprehensive Annual Report City of Renton, Washington
Management's Discussion and Analysis, 3-12
Governmental
Activities
Business‐type
Activities Total
ASSETS
Current assets:
Cash and cash equivalents $ 95,290,880 $ 58,447,013 $ 153,737,893
Cash with fiscal agent 237,838 ‐ 237,838
Investments at fair value 28,651,839 18,421,571 47,073,410
Receivables (net of allowance for uncollectibles)21,622,406 6,592,264 28,214,670
Inventories 201,811 395,182 596,993
Prepayments 157,173 ‐ 157,173
Noncurrent assets:
Notes and assessments receivable 858,921 120,798 979,719
Net pension asset 16,913,669 ‐ 16,913,669
Investment in joint ventures (net)34,843,689 ‐ 34,843,689
Restricted assets:
Cash and cash equivalents ‐ 2,810,145 2,810,145
Capital assets not being depreciated:
Land 210,672,191 6,150,056 216,822,247
Construction in progress 20,334,441 14,336,549 34,670,990
Capital assets (net of accumulated depreciation)253,220,774 286,274,853 539,495,627
Intangible assets (net of accumulated amortization)346,374 1,043,377 1,389,751
TOTAL ASSETS 683,352,006 394,591,808 1,077,943,814
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 4,393,474 987,431 5,380,905
Deferred amount on refunding 797,914 890,167 1,688,081
TOTAL DEFERRED OUTFLOWS OF RESOURCES 5,191,388 1,877,598 7,068,986
LIABILITIES
Current liabilities:
Accounts payable and other current liabilities 12,237,845 4,175,063 16,412,908
Interest payable 173,387 51,077 224,464
Unearned revenue 1,033,457 408,867 1,442,324
Noncurrent liabilities:
Due within one year 8,044,949 2,982,313 11,027,262
Due in more than one year 85,699,375 30,830,653 116,530,028
TOTAL LIABILITIES 107,189,013 38,447,973 145,636,986
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 5,721,668 979,849 6,701,517
TOTAL DEFERRED INFLOWS OF RESOURCES 5,721,668 979,849 6,701,517
NET POSITION
Net investment in capital assets 466,996,814 281,531,560 748,528,374
Restricted for:
Debt service ‐ 2,810,145 2,810,145
Grants and contributions 1,988,971 ‐ 1,988,971
Pensions 16,913,669 ‐ 16,913,669
Special purpose taxes & assessments 12,401,861 ‐ 12,401,861
Unrestricted 77,331,398 72,699,879 150,031,277
TOTAL NET POSITION $ 575,632,713 $ 357,041,584 $ 932,674,297
City of Renton
Statement of Net Position
December 31, 2017
Primary Government
2017 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement.Basic Financial Statements, 4-1
Functions/ProgramsExpenses Charges for ServicesOperating Grants and ContributionsCapital Grants and ContributionsGovernmental ActivitiesBusiness‐type ActivitiesTotalPRIMARY GOVERNMENT:GOVERNMENTAL ACTIVITIES:General government $ 11,619,780 $ 7,954,848 $ 1,573,064 $ 510,096 $ (1,581,772) $ ‐ $ (1,581,772)Judicial 2,631,350 3,318,723 16,707 ‐ 704,080 ‐ 704,080 Public safety 34,970,381 1,478,987 1,295,512 ‐ (32,195,882) ‐ (32,195,882)Utilities 686,356 ‐ ‐ 673,366 (12,990) ‐ (12,990)Transportation 18,369,818 2,218,114 2,489,684 7,063,627 (6,598,393) ‐ (6,598,393)Economic environment 8,280,445 4,814,488 353,003 ‐ (3,112,954) ‐ (3,112,954)Health and human services 2,210,690 ‐ 22,021 ‐ (2,188,669) ‐ (2,188,669)Culture and recreation 14,307,593 2,347,627 234,231 1,919,918 (9,805,817) ‐ (9,805,817)Interest on long‐term debt 1,146,722 ‐ ‐ ‐ (1,146,722) ‐ (1,146,722)TOTAL GOVERNMENTAL ACTIVITIES 94,223,135 22,132,787 5,984,222 10,167,007 (55,939,119) ‐ (55,939,119)BUSINESS‐TYPE ACTIVITIES:Airport 3,178,004 2,820,574 54,944 ‐ ‐ (302,486) (302,486)Golf Course 2,386,006 2,166,680 10,984 ‐ ‐ (208,342) (208,342)Solid Waste 19,367,124 17,787,705 79,417 ‐ ‐ (1,500,002) (1,500,002)Waterworks Utility 51,849,388 56,202,702 1,068,043 7,664,875 ‐ 13,086,232 13,086,232 TOTAL BUSINESS‐TYPE ACTIVITIES 76,780,522 78,977,661 1,213,388 7,664,875 ‐ 11,075,402 11,075,402 TOTAL PRIMARY GOVERNMENT $ 171,003,657 $ 101,110,448 $ 7,197,610 $ 17,831,882 (55,939,119) 11,075,402 (44,863,717) 24,669,058 ‐ 24,669,058 33,381,395 ‐ 33,381,395 30,135,189 ‐ 30,135,189 7,193,498 ‐ 7,193,498 1,587,589 483,356 2,070,945 689,371 48,201 737,572 992,114 ‐ 992,114 218,212 (218,212) ‐ 98,866,426 313,345 99,179,771 42,927,307 11,388,747 54,316,054 533,392,778 345,652,837 879,045,615 (687,372) ‐ (687,372) 532,705,406 345,652,837 878,358,243 $ 575,632,713 $ 357,041,584 $ 932,674,297 TOTAL GENERAL REVENUES AND TRANSFERSCHANGE IN NET POSITIONNET POSITION ‐ JANUARY 1Prior Period AdjustmentNET POSITION ‐ JANUARY 1 RESTATEDNET POSITION ‐ DECEMBER 31Business taxesExcise taxesInterest and investment earningsMiscellaneousGain on sale of assetsTRANSFERSProgram RevenuesPrimary GovernmentGENERAL REVENUES:Taxes:Property taxesRetail sales taxesCity of RentonStatement of ActivitiesFor the Year Ended December 31, 2017Net (Expense) Revenue and Changes in Net Position2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-2The notes to the financial statements are an integral part of this statement.
General
Municipal
Facilities CIP
Capital
Improvement
Total
Nonmajor
Funds
Total
Governmental
Funds
ASSETS
Cash & cash equivalents $ 27,948,708 $ 20,817,029 $ 5,025,058 $ 5,047,079 $ 58,837,874
Cash with fiscal agent 237,838 ‐ ‐ ‐ 237,838
Investments at fair value 8,399,624 6,260,430 1,511,216 1,517,838 17,689,108
Receivables, net of allowances:
Taxes 3,962,933 ‐ ‐ ‐ 3,962,933
Customer accounts 6,042,870 575 318,666 5,000 6,367,111
Accrued interest & penalties 105,509 70,898 17,679 35,803 229,889
Notes and assessments receivable 397,848 456,389 ‐ 4,684 858,921
Due from other funds ‐ 478,210 ‐ ‐ 478,210
Due from other governments 6,755,067 1,879,069 1,235,167 1,000,019 10,869,322
TOTAL ASSETS $ 53,850,397 $ 29,962,600 $ 8,107,786 $ 7,610,423 $ 99,531,206
LIABILITIES
Accounts payable $ 1,766,531 $ 271,600 $ 800,767 $ 40,737 $ 2,879,635
Taxes payable 13,977 ‐ ‐ ‐ 13,977
Retainage payable ‐ 115,116 213,838 ‐ 328,954
Due to other funds 478,210 ‐ ‐ ‐ 478,210
Due to other governments 3,669,389 ‐ ‐ ‐ 3,669,389
Interfund loans payable 525,000 ‐ ‐ ‐ 525,000
Custodial accounts 281,879 ‐ ‐ ‐ 281,879
Unearned revenues 197,455 ‐ ‐ 836,002 1,033,457
Wages and benefits payable 2,101,253 ‐ ‐ ‐ 2,101,253
TOTAL LIABILITIES 9,033,694 386,716 1,014,605 876,739 11,311,754
DEFERRED INFLOWS OF RESOURCES
Deferred amount of special assessments ‐ ‐ ‐ 4,824 4,824
Unavailable revenues 5,544,190 ‐ 318,666 5,000 5,867,856
TOTAL DEFERRED INFLOWS OF RESOURCES 5,544,190 ‐ 318,666 9,824 5,872,680
FUND BALANCES
Restricted 1,341,610 7,815,982 972,363 4,260,877 14,390,832
Committed ‐ 6,827,135 4,833,258 103,050 11,763,443
Assigned 8,853,636 14,932,767 968,894 2,359,933 27,115,230
Unassigned 29,077,267 ‐ ‐ ‐ 29,077,267
TOTAL FUND BALANCES 39,272,513 29,575,884 6,774,515 6,723,860 82,346,772
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
FUND BALANCES $ 53,850,397 $ 29,962,600 $ 8,107,786 $ 7,610,423 $ 99,531,206
City of Renton
Balance Sheet
Governmental Funds
December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-3The notes to the financial statements are an integral part of this statement.
FUND BALANCES ‐ TOTAL GOVERNMENTAL FUNDS $ 82,346,772
Amounts reported for governmental activities in the statement of net position are different because:
Other non‐current assets and deferred outflows of resources used in governmental activities are not
financial resources and, therefore, are not reported in the governmental funds.
Investment in Joint Venture‐SCORE 29,630,968
Investment in Joint Venture‐Valley Communications 5,212,721
Net pension assets 16,913,669
Deferred outflows related to pensions 3,795,659
Deferred outflows related to refundings 797,914 56,350,931
Capital assets used in governmental activities are not financial resources and, therefore, are not reported
in the governmental funds.
Land 210,672,191
Construction in progress 20,189,635
Capital assets (net of accumulated depreciation)243,577,171
Intangible assets (net of accumulated amortization)7,417 474,446,414
Other long‐term assets are not available to pay for current period expenditures and, therefore, are
reported as unavailable revenue in the funds.
Property tax revenue 316,478
Municipal court revenue 827,346
Photo enforcement revenue 4,378,682
Other 350,174 5,872,680
Certain liabilities are not due and payable in the current period and, therefore, are not reported in the
governmental funds.
Interest payable (173,387)
Bonds payable (60,075,302)
Compensated absences (3,049,078)
Other post employment benefits (10,255,143)
Net pension liabilities (16,237,643)
Deferred inflows related to pensions (5,128,442) (94,918,995)
Accrued pension expense reported in the governmental funds is not included in the calculation of the net
pension liability.148,370
Internal service funds are used by management to charge the costs of certain activities, such as equipment
rental, self‐insurance, information technology and facility services to individual funds. The assets and
liabilities of the internal service funds are included in the governmental activities in the statement of net
position.51,386,541
NET POSITION OF GOVERNMENTAL ACTIVITIES $ 575,632,713
Reconciliation of the Balance Sheet
To the Statement of Net Position
December 31, 2017
City of Renton
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-4The notes to the financial statements are an integral part of this statement.
General
Municipal
Facilities CIP
Capital
Improvement
Total
Nonmajor
Funds
Total
Governmental
Funds
REVENUES
Taxes $ 81,006,310 $ 7,270,101 $ 1,473,974 $ 5,825,657 $ 95,576,042
Licenses and permits 5,978,811 ‐ 394,726 88,519 6,462,056
Intergovernmental revenues 4,359,603 2,221,823 3,079,749 1,283,137 10,944,312
Charges for services 4,970,496 23,220 319,335 1,550,015 6,863,066
Fines and forfeits 2,946,849 ‐ 31,951 ‐ 2,978,800
Contributions 157,119 232,880 136,969 25,000 551,968
Investment earnings 1,095,389 138,189 33,234 63,630 1,330,442
Miscellaneous revenue 2,280,640 ‐ ‐ ‐ 2,280,640
Total revenues 102,795,217 9,886,213 5,469,938 8,835,958 126,987,326
EXPENDITURES
Current:
General government 11,515,552 977,175 ‐ ‐ 12,492,727
Judicial 2,650,678 ‐ ‐ ‐ 2,650,678
Public safety 36,063,481 ‐ ‐ ‐ 36,063,481
Utilities 240,611 ‐ ‐ ‐ 240,611
Transportation 10,018,464 ‐ 2,549,291 ‐ 12,567,755
Economic environment 7,006,960 399,316 ‐ 324,596 7,730,872
Health and human services 2,175,116 ‐ ‐ ‐ 2,175,116
Culture and recreation 12,106,454 950,128 ‐ 23,521 13,080,103
Capital outlay:
General government ‐ 13,783 ‐ ‐ 13,783
Public safety ‐ 480,217 ‐ ‐ 480,217
Transportation 10,435 ‐ 8,861,678 ‐ 8,872,113
Culture and recreation 22,502 2,412,220 ‐ 95,055 2,529,777
Debt service:
Principal payment ‐ ‐ ‐ 4,672,672 4,672,672
Interest and fiscal charges ‐ ‐ ‐ 1,390,904 1,390,904
Total expenditures 81,810,253 5,232,839 11,410,969 6,506,748 104,960,809
Excess (deficiency) of revenues over expenditures 20,984,964 4,653,374 (5,941,031) 2,329,210 22,026,517
OTHER FINANCING SOURCES (USES)
Transfer in 5,000 5,584,601 4,263,989 38,328 9,891,918
Transfers out (11,730,940) (9,505) (44,823) (2,589,495) (14,374,763)
Sale of capital assets 4,925 911,622 ‐ ‐ 916,547
Insurance Recoveries 17,217 ‐ ‐ ‐ 17,217
Total other financing sources (uses) (11,703,798) 6,486,718 4,219,166 (2,551,167) (3,549,081)
Net change in fund balances 9,281,166 11,140,092 (1,721,865) (221,957) 18,477,436
FUND BALANCE ‐ JANUARY 1 29,991,347 18,435,792 8,496,380 6,945,817 63,869,336
FUND BALANCE ‐ DECEMBER 31 $ 39,272,513 $ 29,575,884 $ 6,774,515 $ 6,723,860 $ 82,346,772
City of Renton
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-5The notes to the financial statements are an integral part of this statement.
NET CHANGES IN FUND BALANCES ‐ TOTAL GOVERNMENTAL FUNDS $ 18,477,436
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost
of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the
amount by which depreciation and amortization expenses and the loss on transfer of capital assets to other
governments exceeded capital outlays.
Capital expenditures 11,895,890
Depreciation and amortization expense (10,056,739)
Loss on disposal of capital assets (39,355)
Transfer of capital assets to business‐type activities (242,231) 1,557,565
Governmental funds report pension expenditures when due and payable from current financial resources.
However, in the statement of activities, pension expenseis measured by the change in the net pension assets,
net pension liabilities, and related deferred outflows and inflows. This is the net difference in pension
expense.4,263,315
Donations of property and infrastructure from developers are not reported in the governmental funds.
However, in the statement of activities, the fair market value of those assets is recognized as revenue.3,827,107
Revenues in the statement of activities that do not provide current financial resources are not reported as
revenue in the funds. Unavailable revenue increased by this amount.487,734
The issuance of long‐term debt (e.g., bonds, leases) provides current financial resources to governmental
funds, while the repayment of the principle of long‐term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds
report the effect of premiums, discounts, and refundings when debt is first issued, whereas these amounts
are deferred and amortized in the statement of activities. This amount is the net effect of these differences in
the treatment of long‐term debt and related items.2,836,793
Increase (decrease) in Investment in Joint Ventures which do not provide current financial resources and,
therefore, are not reported in the funds.
Equity interest‐SCORE 74,665
Equity interest‐Valley Communications 681,177 755,842
Internal service funds are used by management to charge the costs of certain activities to individual funds.
The net revenue (expense) of the internal service funds are reported with governmental activities.10,721,515
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 42,927,307
For the Year Ended December 31, 2017
City of Renton
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of the Governmental Funds
To the Statement of Activities
Governmental Activities
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-6The notes to the financial statements are an integral part of this statement.
Governmental
Activities
Waterworks
Utility Solid Waste
Total Nonmajor
Funds
Total Enterprise
Funds
Internal Service
Funds
ASSETS
Current assets:
Cash & cash equivalents $ 52,684,904 $ 2,776,217 $ 2,985,892 $ 58,447,013 $ 36,453,006
Investments at fair value 16,689,360 834,908 897,303 18,421,571 10,962,731
Receivables (net of allowances)
Customer accounts 5,247,736 33,781 46,435 5,327,952 42,556
Special assessments 116,632 ‐ ‐ 116,632 ‐
Interest & penalties 223,997 12,106 10,684 246,787 150,595
Interfund loans ‐ ‐ ‐ ‐ 175,000
Due from other governments 783,114 83,779 34,000 900,893 ‐
Supplies inventory 323,812 ‐ 71,370 395,182 201,811
Prepayments ‐ ‐ ‐ ‐ 157,173
Total current assets 76,069,555 3,740,791 4,045,684 83,856,030 48,142,872
Noncurrent assets:
Restricted cash, cash equivalents 2,810,145 ‐ ‐ 2,810,145 ‐
Special assessments 120,798 ‐ ‐ 120,798 ‐
Advances due from other funds ‐ ‐ ‐ ‐ 350,000
Capital assets not being depreciated:
Land 2,682,776 ‐ 3,467,280 6,150,056 ‐
Construction in Progress 14,021,439 ‐ 315,110 14,336,549 144,806
Capital assets, net of accumulated
depreciation/amortization:
Capital assets (net) 261,748,574 ‐ 24,526,279 286,274,853 9,643,603
Intangible assets (net) 1,043,377 ‐ ‐ 1,043,377 338,957
Total noncurrent assets 282,427,109 ‐ 28,308,669 310,735,778 10,477,366
TOTAL ASSETS 358,496,664 3,740,791 32,354,353 394,591,808 58,620,238
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 722,192 41,992 223,247 987,431 597,815
Deferred amount on refunding 890,167 ‐ ‐ 890,167 ‐
TOTAL DEFERRED OUTFLOWS OF RESOURCES 1,612,359 41,992 223,247 1,877,598 597,815
LIABILITIES
Current liabilities:
Accounts payable 2,271,934 624,980 181,262 3,078,176 701,340
Claims incurred but not reported ‐ ‐ ‐ ‐ 2,103,615
Retainage payable 82,833 ‐ 2,194 85,027 14
Interest payable 51,077 ‐ ‐ 51,077 ‐
Wages and benefits payable 334,872 20,389 85,607 440,868 294,551
Taxes payable 86,556 175,729 6,790 269,075 11,608
Custodial accounts 23,770 ‐ 278,147 301,917 ‐
Unearned revenues 240,165 ‐ 168,702 408,867 ‐
Compensated absences payable 406,794 21,533 80,000 508,327 322,755
Leases payable ‐ ‐ ‐ ‐ 35,129
Public works trust fund loan payable 345,818 ‐ ‐ 345,818 ‐
Revenue bonds payable 2,128,168 ‐ ‐ 2,128,168 ‐
Total current liabilities 5,971,987 842,631 802,702 7,617,320 3,469,012
Noncurrent liabilities:
Compensated absences payable 145,095 10,210 21,067 176,372 122,171
Capital lease payable ‐ ‐ ‐ ‐ 35,850
Public works trust fund loan payable 1,898,265 ‐ ‐ 1,898,265 ‐
Revenue bonds payable 22,791,191 ‐ ‐ 22,791,191
Net pension liability 4,362,583 253,661 1,348,581 5,964,825 3,611,253
Total noncurrent liabilities 29,197,134 263,871 1,369,648 30,830,653 3,769,274
TOTAL LIABILITIES 35,169,121 1,106,502 2,172,350 38,447,973 7,238,286
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 716,647 41,669 221,533 979,849 593,226
TOTAL DEFERRED INFLOWS OF RESOURCES 716,647 41,669 221,533 979,849 593,226
NET POSITION
Net investment in capital assets 253,222,891 ‐ 28,308,669 281,531,560 10,056,387
Restricted 2,810,145 ‐ ‐ 2,810,145 ‐
Unrestricted 68,190,219 2,634,612 1,875,048 72,699,879 41,330,154
TOTAL NET POSITION $ 324,223,255 $ 2,634,612 $ 30,183,717 $ 357,041,584 $ 51,386,541
Business‐type Activities
City of Renton
Statement of Net Position
Proprietary Funds
December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-7The notes to the financial statements are an integral part of this statement.
Governmental
Activities
Waterworks
Utility Solid Waste
Total Nonmajor
Funds
Total Enterprise
Funds
Internal Service
Funds
OPERATING REVENUES
Charges for services $ 55,729,270 $ 17,769,117 $ 1,947,033 $ 75,445,420 $ 32,467,324
Interfund revenues 166,086 5,862 ‐ 171,948 ‐
Miscellaneous revenue 307,346 12,726 3,040,221 3,360,293 205,175
TOTAL OPERATING REVENUES 56,202,702 17,787,705 4,987,254 78,977,661 32,672,499
OPERATING EXPENSES
Supplies 1,168,910 14,585 375,680 1,559,175 2,199,457
Personnel Services 10,212,640 690,732 2,767,664 13,671,036 6,963,242
Contracted Services 24,214,529 16,389,714 1,046,881 41,651,124 4,805,660
Insurance ‐ ‐ ‐ ‐ 11,239,609
Intergovernmental 4,668,211 2,272,093 13,034 6,953,338 17,657
Depreciation and amortization 8,984,439 ‐ 1,360,751 10,345,190 2,268,141
TOTAL OPERATING EXPENSES 49,248,729 19,367,124 5,564,010 74,179,863 27,493,766
OPERATING INCOME (LOSS) 6,953,973 (1,579,419) (576,756) 4,797,798 5,178,733
NONOPERATING REVENUES (EXPENSES)
Intergovernmental revenues 1,068,043 79,417 65,928 1,213,388 47,440
Interest revenue 443,450 18,704 21,202 483,356 257,148
Gain (loss) on sale of capital assets (1,410,000) ‐ ‐ (1,410,000) 75,567
Other non‐operating revenue (expenses) 14,600 25,500 1,872 41,972 4,947
Interest expense (1,190,659) ‐ ‐ (1,190,659) (2,979)
Insurance Recoveries 6,229 ‐ ‐ 6,229 210,260
TOTAL NONOPERATING REVENUES (EXPENSES) (1,068,337) 123,621 89,002 (855,714) 592,383
INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 5,885,636 (1,455,798) (487,754) 3,942,084 5,771,116
Capital contributions 7,664,875 ‐ ‐ 7,664,875 7,110
Transfer in 245,731 ‐ ‐ 245,731 4,957,277
Transfers out (463,573) (370) ‐ (463,943) (13,989)
CHANGE IN NET POSITION 13,332,669 (1,456,168) (487,754) 11,388,747 10,721,514
NET POSITION ‐ JANUARY 1 310,890,586 4,090,780 30,671,471 345,652,837 40,778,734
Prior Period Adjustment ‐ ‐ ‐ ‐ (113,707)
NET POSITION ‐ JANUARY 1 RESTATED 310,890,586 4,090,780 30,671,471 345,652,837 40,665,027
NET POSITION ‐ DECEMBER 31 $ 324,223,255 $ 2,634,612 $ 30,183,717 $ 357,041,584 $ 51,386,541
Business‐type Activities
City of Renton
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2017
2017 Annual Comprehensive Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement.Basic Financial Statements, 4-8
GOVERNMENTAL
OTHER TOTAL ACTIVITIES
WATERWORKS SOLID ENTERPRISE ENTERPRISE INTERNAL SERVICE
UTILITY WASTE FUNDS FUNDS FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services $ 57,164,339 $ 19,485,688 $ 5,055,297 $ 81,705,324 $ 32,661,716
Cash paid to suppliers for goods & services (29,466,176) (19,174,446) (1,519,232) (50,159,854) (19,088,219)
Cash paid to employees (10,347,993) (716,111) (2,433,565) (13,497,669) (7,073,644)
Other non‐operating receipts 20,829 25,500 1,872 48,201 215,207
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 17,370,999 (379,369) 1,104,372 18,096,002 6,715,060
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds 3,500 ‐ ‐ 3,500 4,957,277
Transfers to other funds (463,573) (370) ‐ (463,943) (103,865)
Operating grants 1,568,650 134,063 40,770 1,743,483 47,440
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES 1,108,577 133,693 40,770 1,283,040 4,900,852
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Proceeds from the sale of equipment ‐ ‐ ‐ ‐ 179,401
System development charges 1,836,016 ‐ ‐ 1,836,016 ‐
Acquisition & construction of capital assets (6,526,882) ‐ (304,070) (6,830,952) (3,317,973)
Special assessments 145,155 ‐ ‐ 145,155 ‐
Capital grants 1,265,131 ‐ ‐ 1,265,131 7,110
Proceeds from the sale of bonds 6,283,168 ‐ ‐ 6,283,168 ‐
Principal payments on debt (8,516,050) ‐ ‐ (8,516,050) (33,924)
Interest payments on debt (871,270) ‐ ‐ (871,270) (2,979)
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES (6,384,732) ‐ (304,070) (6,688,802) (3,168,365)
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal proceeds from interfund loans ‐ ‐ ‐ ‐ 175,000
Proceeds from sale of investments 635,853 278,650 11,555 926,058 297,758
Payments for investments ‐ ‐ (31,517) (31,517) (77,135)
Interest on investments and loans 377,194 18,858 18,317 414,369 249,095
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES 1,013,047 297,508 (1,645) 1,308,910 644,718
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS 13,107,891 51,832 839,427 13,999,150 9,092,265
CASH & CASH EQUIVALENTS, JANUARY 1 39,477,580 2,724,385 2,146,465 44,348,430 27,360,741
RESTRICTED CASH & CASH EQUIVALENTS, JANUARY 1 2,909,578 ‐ ‐ 2,909,578 ‐
TOTAL CASH, RESTRICTED CASH, & CASH
EQUIVALENTS, DECEMBER 31 $55,495,049 $2,776,217 $ 2,985,892 $ 61,257,158 $ 36,453,006
BUSINESS‐TYPE ACTIVITIES
ENTERPRISE FUNDS
Statement of Cash Flows
Proprietary Funds
Page 1 of 2
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement Basic Financial Statements, 4-9
GOVERNMENTAL
ACTIVITIES
OTHER TOTAL INTERNAL
WATERWORKS SOLID ENTERPRISE ENTERPRISE SERVICE
UTILITY WASTE FUNDS FUNDS FUNDS
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)$ 6,953,973 $ (1,579,419) $ (576,756) $ 4,797,798 $5,178,733
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization 8,984,439 ‐ 1,360,751 10,345,190 2,268,141
Other non‐operating revenue 20,829 25,500 1,872 48,201 215,207
Abandonment of construction project ‐ ‐ ‐ ‐ 30,000
(Increase) decrease in
accounts receivable 1,018,897 1,704,742 (8,417) 2,715,222 (11,986)
(Increase) decrease in inventory
& prepaid items 4,519 ‐ (12,264) (7,745) (12,606)
(Increase) decrease in deferred outflows
related to pensions 209,104 16,249 (17,901) 207,452 174,906
Increase (decrease) in operating
accounts payable 863,631 (601,931) (58,413) 203,287 (385,930)
Increase (decrease) in due to
other funds (22,081) ‐ ‐ (22,081) ‐
Increase (decrease) in accrued taxes
& other short‐term liabilities (260,595) 103,877 (12,960) (169,678) (456,076)
Increase (decrease) in
customer deposits 4,600 ‐ 72,875 77,475 ‐
Increase (decrease) in
unearned revenues (61,860) (6,759) 3,585 (65,034) (21)
Increase (decrease) in accrued
employee wages and benefits 24,737 3,773 (15,726) 12,784 31,455
Increase (decrease) in net pension liability
and deferred inflows related to pensions (369,194) (45,401) 367,726 (46,869) (316,763)
Total adjustments 10,417,026 1,200,050 1,681,128 13,298,204 1,536,327
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES $ 17,370,999 $ (379,369) $ 1,104,372 $ 18,096,002 $ 6,715,060
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Loss on disposal of capital assets $ (1,410,000) $‐ $‐ $ (1,410,000) $‐
Contributions of capital assets $ 5,035,966 $‐ $‐ $ 5,035,966 $‐
Depreciation & amortization $ 8,984,439 $‐ $ 1,360,751 $ 10,345,190 $ 2,268,141
BUSINESS‐TYPE ACTIVITIES
ENTERPRISE FUNDS
Statement of Cash Flows
Proprietary Funds
Page 2 of 2
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-10The notes to the financial statements are an integral part of this statement.
Firefighters' Pension
Trust Fund
Special Deposits
Agency Fund
ASSETS
Cash & cash equivalents $ 2,734,297 $ 2,143,984
Investments at fair value 3,743,889 215,566
Receivables (net of allowances):
Interest & penalties 3,153,627 4,081
TOTAL ASSETS 9,631,813 $ 2,363,631
LIABILITIES
Accounts payable 12,445 $ 4,000
Custodial accounts ‐ 2,359,631
TOTAL LIABILITIES 12,445 $ 2,363,631
NET POSITION
Held in trust for pension benefits and other purposes $ 9,619,368
City of Renton
Statement of Fiduciary Net Position
December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-11The notes to the financial statements are an integral part of this statement.
Firefighters' Pension
Trust Fund
ADDITIONS
Contributions:
Fire insurance premiums transferred in $ 150,951
Investment earnings:
Interest revenue 327,638
Net increase (decrease) in the fair value of investments (213,774)
Total investment earnings 113,864
TOTAL ADDITIONS 264,815
DEDUCTIONS
Benefits 239,653
Administrative expenses 12,445
TOTAL DEDUCTIONS 252,098
CHANGE IN NET POSITION 12,717
NET POSITION ‐ JANUARY 1 9,606,651
NET POSITION ‐ DECEMBER 31 $ 9,619,368
City of Renton
Statement of Changes in Fiduciary Net Position
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-12The notes to the financial statements are an integral part of this statement.
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Renton’s financial statements have been prepared in conformity with generally
accepted accounting principles (GAAP) in the United States, as applied to governments. The
Governmental Accounting Standards Board (GASB) is the standard setting body for governmental
accounting and financial reporting.
A. REPORTING ENTITY
The City of Renton was incorporated on September 6, 1901, and operates under the laws of the
State of Washington applicable to a Non‐Charter code city with a Mayor/Council form of government.
A full‐time Mayor and seven part‐time Council members serve the City, all elected at large to four‐year
terms. The City provides the full range of municipal services authorized by state statutes, together with
a Municipal Airport, a Waterworks Utility, a Solid Waste Utility, and a Municipal Golf Course.
The City of Renton has no component units (either blended or discretely presented) included in these
statements. The City of Renton’s Mayor appoints the Governing Board for the Renton Housing
Authority, which is not considered a component unit of the City. The City is under no obligation to
subsidize, nor does it exercise any other prerequisite for inclusion.
B. BASIS OF PRESENTATION
The City’s basic financial statements include both government‐wide statements and fund financial
statements. The government‐wide statements report financial information for the City as a whole, while
the fund statements present detailed financial information at the fund level. The City’s fiduciary funds
are presented in the fund financial statements. Since the assets are being held for the benefit of a third
party and cannot be used for obligations of the City, they are not included in the government‐wide
statements.
Government‐wide financial statements
In the government‐wide statement of net position governmental and business‐type activities are
reported. Governmental activities are mostly supported by taxes, intergovernmental revenue, and
other non‐exchange transactions. The governmental activities column includes the combined data
from all governmental funds and internal service funds. Business‐type activities mostly rely on fees
and charges for services to external customers and include data from the City’s enterprise funds.
The government‐wide statement of activities presents a comparison between direct expenses and
program revenues for each of the City’s governmental activities (general government, judicial, public
safety, utilities, transportation, economic environment, health and human services, and culture and
recreation) and for each identifiable business‐type activity (waterworks utility, airport, solid waste
utility, and golf course). Direct expenses are those that are specifically associated with a function and
therefore clearly identifiable to that particular function.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-13
NOTES TO THE FINANCIAL STATEMENTS
The statement of activities reports the expenses of a given function offset by a program revenue directly
associated with the functional program. Program revenues include: 1) charges for services which reports
fees and charges for users of the City’s service, 2) operating grants and contributions which support
annual operating activities, and 3) capital grants and contributions which finance the acquisition,
construction, or rehabilitation of capital assets. For determining the function, charges for services are
tied to the function that generates the revenue and grants and contributions are tied to the function in
which functional use they are restricted towards.
Taxes and other sources that are not directly related to a program are reported as general revenue.
The comparison of direct expenses with program revenues identifies the extent each governmental
function and business activity are self‐sustaining and requires a draw from the general revenues of the
City.
Generally, the effect of interfund activity has been eliminated from the government‐wide
financial statements, with the exception of various charges for services among different functions within
the government. Elimination of these charges would distort the direct costs and program revenues
reported for the various functions involved.
Fund financial statements
The City’s activities are tracked in individual funds to segregate the transactions to aid in
financial management and, in some cases, demonstrate legal compliance. The fund financial statements
are intended to present the City’s financial activities at a more detailed level. Separate financial
statements are provided for each fund category ‐ governmental, proprietary, and fiduciary funds. Each
of the City’s major funds, within each fund category, are presented in a separate column. All non‐major
funds, within each fund category, are aggregated into one column; internal service funds are aggregated
into one column and reported on the face of the proprietary fund statements; and fiduciary funds are
reported by type.
The City reports the following major governmental funds:
General Fund is the primary operating fund of the City. It is used to account for the resources and
disbursements of ordinary City operations that are not required to be accounted for in another fund.
These include the costs of legislative and executive departments, court services, finance and legal
departments, development services and police departments, human resources and technical services,
community services, parks, economic development, streets, property management for City owned
leased facilities, farmers market, and museum. The major sources of revenue are property taxes, utility
taxes, and sales taxes. Licenses and permits, charges for services, and fines and forfeits provide
additional support. Community development block grant activities are also accounted for within this
fund, which is federally funded.
Municipal Facilities CIP Fund is used to fund facility construction improvement and renovation, property
acquisitions for parks and City space needs, parks development and equipment, and major capital
requirements as identified in the Capital Investment Program (CIP).
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-14
NOTES TO THE FINANCIAL STATEMENTS
Capital Improvement Fund accounts for transportation capital projects, many of which are dependent
on the acquisition of various state and federal grant programs and impact mitigation fees.
The City reports the following major enterprise funds:
Waterworks Utility Fund accounts for all operating and capital improvement programs for water,
wastewater, and storm water services within the City. The operating activities are primarily supported
by user fees and include: administration, billings and collections, debt service, engineering and
operation, maintenance and repairs. The primary resources for capital improvement programs are
revenue bond proceeds, grants (as available), and utility connection charges.
Solid Waste Fund accounts for solid waste, recycling, and yard waste collection services for the City and
is supported entirely by service fees. The expenses include payment to the City’s garbage contractor
and other service charges.
Additionally, the government reports the following fund types:
Internal Service Funds include 1) the equipment rental fund (equipment replacement, information
technology, facilities, and communications) and 2) the insurance fund (including risk management,
workers compensation, unemployment compensation, and employee health care program). The
equipment rental fund factors all costs, including depreciation, into the rates charged to each user
department. The insurance fund pays expense and rates are charged to departments based on use
and/or coverage requirements.
Pension Trust Fund accounts for the payment of administrative costs and benefits for retired
firefighters and their beneficiaries, who were employed prior to March 1, 1970. Primary revenues
sources are the fire premium tax (contributed from the City) and investment income.
Agency Fund was established for the purpose of holding cash deposits or other securities pending
fulfillment of certain conditions and/or requirements by the depositor. Refunds are made when all
obligations have been met and only upon authorization from the transmitting department. Beginning in
2017, the fund also holds fire impact mitigation fees collected on behalf of the Renton Regional Fire
Authority (RRFA).
Special Revenue Funds are used to account for specific revenues that are restricted for expenditures
for particular purposes.
Debt Service Funds account for the accumulation of resources for and the payment of general obligation
and special assessment bonds.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-15
NOTES TO THE FINANCIAL STATEMENTS
During the course of operations the City has activity between funds for various purposes. Any
residual balances outstanding at year‐end are reported as due to/from other funds and advances
to/from other funds. While these balances are reported in the fund financial statements, certain
eliminations are made in the preparation of the government‐wide financial statements. Balances
between funds included in the governmental activities (generally between governmental and internal
service funds) are eliminated so that only the net amount is included as internal balances in the
governmental activities column. Similarly, balances between the funds included in the business‐type
activities are eliminated so that only the net amount is included as internal balances in the business‐
type activities column.
Further, certain activity occurs during the year involving transfers of resources between funds. In
fund financial statements these amounts are reported as gross amounts as transfers in/out. While
reported in fund financial statements, certain eliminations are made in the preparation of government‐
wide financial statements. Transfers between the funds included in governmental activities are
eliminated so that only the net amount is included as transfers in the governmental activities column.
Similarly, balances between the funds included in business‐type activities are eliminated so that only
the net amount is included in transfers in the business‐type activities column.
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
Basis of Accounting refers to the point at which revenue and expenditure/expense transactions or events
are recognized in the accounts and reported in the financial statements. Measurement focus is
measured one of two ways: either the current financial resource or the economic resource method.
Government‐wide financial statements – the government‐wide financial statements are prepared
using the economic resources measurement focus and the accrual basis of accounting. Revenues are
recorded when earned and expenses are recorded when the liability is incurred, regardless of the timing
of related cash flows. Property taxes are recognized as revenue in the year they are levied and grants
are recognized as revenue as soon as all eligibility requirements have been met.
Governmental fund financial statements – the governmental fund financial statements use a different
measurement focus from the proprietary fund statements and government‐wide statements. The
governmental fund financial statements use the current financial resources measurement and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable
and available. Revenues are considered to be available when they are collectible within the current
reporting period or soon enough thereafter to pay liabilities of the current period. The City considers
revenues available if they are collected within 60 days of the end of the current fiscal period.
Expenditures are generally recorded when a liability is incurred, the same as accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences, and
claims and judgements are recorded only when payment is due. General capital asset acquisitions are
reported as current expenditures in governmental funds. Issuance of long‐term debt and capital lease
acquisitions are reported as other financing sources.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-16
NOTES TO THE FINANCIAL STATEMENTS
Property taxes, sales tax, franchise taxes, licenses, and interest associated with the current period are
all considered susceptible to accrual and have been recognized as revenue in the current fiscal period.
Expenditure‐driven grants are recognized as revenue when the qualifying expenditure amount is
received during the period or within the availability period for this revenue source. All other revenue
is considered measurable and available only when the cash is received by the City.
Since the measurement focus between the governmental fund financial statements and the
governmental activities in the government‐wide statements vary, a detailed reconciliation is included in
the fund statements to identify the relationship between the two statement types.
Proprietary fund financial statements – the proprietary fund statements and pension fund
statements are reported using the economic resources measurement focus and accrual basis of
accounting, the same as the government‐wide statements.
D. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET POSITION/FUND
BALANCE
1. Cash and Cash Equivalents
The City has defined cash and cash equivalents as cash on hand, demand deposits, and all highly
liquid investments (including restricted assets) with maturity of three months or less when
purchased. These amounts are classified on the balance sheet and in the statement of net
position as cash and cash equivalents or investments in the various funds. Included in this category
are all funds invested in the Local Government Investment Pool. Excluded from this category are
cash balances held by Fiscal Agents since the City does not have discretionary use of these funds.
Most of the City’s cash balances are pooled and invested. Interest earned from investments
purchased with pooled cash is allocated monthly to each fund based on the fund’s beginning equity
balance in the pooled fund.
2. Investments (also see Note 3B.)
Investments for the City are reported at fair value and amortized cost on the government‐wide
statements.
3. Receivables
Receivables have been reported net of estimated uncollectible accounts. Because property taxes,
special assessments, and utility billings are considered liens on property, no estimated uncollectible
amounts are established.
Taxes receivable consists of property taxes and related interest and penalties. Property taxes are
an enforceable lien on real property and are due the first day of the levy year and may be paid
in two equal installments. The first half is due April 1 and the balance is due October 31. The City
collects approximately 99% of the property tax due in the year it is levied and delinquent taxes are
collected within the following few years. Property tax due, but not collected within 60 days of year
end, is recorded as a receivable and offset by deferred inflow of resources – unavailable revenue.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-17
NOTES TO THE FINANCIAL STATEMENTS
There is no allowance for uncollectable property tax because historically all taxes are collected
and/or enforceable via lien (refer to Note 4 for more information).
Accrued interest receivable consists of amounts earned on investments, notes, and contracts.
Customer accounts receivable consists of amounts owed from private individuals or organizations
for goods and services. If the transactions are receivable from another governmental unit, it is
accounted for within “due from other governments.”
Special assessments are recorded when levied and are liens against the property benefited.
Special assessments receivable consist of current and delinquent assessments and related interest
and penalties. Special assessments not due within one year are reported as deferred inflows of
resources in the governmental fund statements and reported as non‐current assets in the
government‐wide statements and the proprietary fund statements.
4. Internal Balances, Interfund Loan Receivables/Payable and Due From/To Other Funds
Activities between funds that are representative of lending/borrowing arrangements outstanding
at the end of the fiscal year are referred to as interfund loans receivable/payable. All other
outstanding balances between funds are reported as due to/from other funds. These amounts are
eliminated within the governmental activities and business‐type activities in the government‐wide
statement, except for the residual balances outstanding between the governmental activities and
business‐type activities, which are reported as internal balances. Refer to Note 10 for a detailed
summary of interfund activity.
5. Inventories and Prepaid items
All City inventories are maintained on a consumption basis of accounting where items are purchased
for inventory and charged to the budgetary accounts as the items are consumed. Any material
inventories at year‐end are included in the balance sheet of the appropriate fund. All inventories
are carried at cost on the first in, first out – FIFO basis, with the exception of the Public Works
Maintenance shops inventory. The value of this inventory is calculated using the average cost
method. The cost of inventories are recorded as an expenditure/expense when consumed rather
than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are
reported as prepaid items in both the government‐wide and fund statements.
6. Capital Assets
General capital assets are those assets not specifically related to activities reported by the
proprietary funds. These assets generally result from expenditures in governmental funds or
contributions. The City reports these assets in the governmental activities column of the
government‐wide statement of net position but does not report these assets in the governmental
fund financial statements. Capital assets utilized by the propriety funds are reported both in the
business‐type activities of the government‐wide statement of net position and in the proprietary
fund statement of net position.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-18
NOTES TO THE FINANCIAL STATEMENTS
All capital assets are valued and capitalized at cost (or estimated historical cost when actual
historical cost is unknown) and updated for additions and retirements during the year. Donated
capital assets are recorded at their acquisition value as of the date received. The City maintains a
capitalization threshold of $5,000 and an estimated useful life in excess of two years. Improvements
to City assets and infrastructure are capitalized, but the cost of normal maintenance and repairs
that do not extend the useful life or increase capacity or efficiency, are expensed.
Interest incurred during the construction phase of capital assets of proprietary funds is included as
part of the capitalized value of the assets constructed. The amount of interest capitalized is
calculated by applying the weighted average borrowing rate to the average cumulative expenditures
since inception. For the year ended December 31, 2017, total proprietary fund interest incurred of
$1,529,249 was reduced by capitalized interest in the amount of $338,590.
All capital assets, other than land, right‐of‐ways, water rights, and construction in progress, are
depreciated using the straight line method over the following estimated useful lives:
Amortization on all intangible assets is provided on the straight‐line basis over the following useful
lives:
7. Other non‐current Assets
A portion of special assessments receivable are collectible in greater than one year. This long‐term
portion of the receivable is reported as another non‐current asset.
Investment in joint ventures consists of the City’s equity balances and investment in debt of
Valley Communications Center and South Correctional Entity (see also Note 12).
8. Deferred outflows/inflows of resources
In addition to assets, the statement of financial position will report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflow of
resources, represents a consumption of net position that applies to a future period and will not be
recognized as an outflow (expense/expenditure) until that reporting period. The City has two items
that qualify for reporting in this category. Deferred amount on refunding is reported on the
government‐wide statement of net position and the proprietary fund statement of net position.
Estimated
Capital Asset Class Useful Life
Buildings and structures, excluding utilities 10‐50 years
Other improvements 10‐80 years
Utility plant 25‐75 years
Machinery and equipment 3‐40 years
Infrastructure 25‐75 years
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-19
NOTES TO THE FINANCIAL STATEMENTS
A deferred amount on refunding results from the difference in the carrying value of refunded debt
and its reacquisition price. This amount is deferred and amortized over the life of the refunded or
refunding debt, whichever is shorter. Deferred amounts related to pensions are differences between
actual and projected experience, investment earnings and actuarial assumptions, changes in
proportion, and the City’s contributions to pensions subsequent to the measurement date, which
was June 30, 2017, provided by the State of Washington. Refer to Note 6 for more information on
pensions.
In addition to liabilities, the statement of financial position will report a separate section for
deferred inflows of resources. This separate financial statement element represents an acquisition
of net position that applies to a future period(s) and so will not be recognized as an inflow of
resources (revenue) until that time (in prior years this inflow was recognized as “deferred revenue”
within the liabilities). The City has three items that it reports as a deferred inflow of resources.
Unavailable revenue arises only on the modified accrual basis, in the governmental fund balance
sheet. The amount reported in unavailable revenue is comprised of three sources: delinquent
municipal court receivables, delinquent photo enforcement receivables, and delinquent property
tax receivables. These amounts are deferred and recognized as revenue in the period the amounts
become available. On the government‐wide statements (accrual basis of accounting) the amounts
are considered available and recognized as inflow of resource in the current period. Deferred
amount of special assessments is the long‐term principal due to the City from special assessment
connections. This amount is only reported in the governmental fund balance sheet. Deferred
amounts related to pensions are the differences between actual and projected experience,
investment earnings and actuarial assumptions, and changes in proportion. Refer to Note 6 for more
information on pensions.
9. Unearned Revenues
This account includes amounts collected in advance for services not yet rendered. The amounts
are subject to return to the payor in the event the associated services are not performed.
10. Custodial Accounts
This account reflects the liability for net monetary assets being held by the City in its agency capacity.
11. Compensated Absences
The City’s policy permits employees to accumulate earned but unused vacation leave benefits,
which are eligible for payment upon separation from City service. For employees hired prior to
January 1, 1994, a fifty percent cash out of accumulated earned but unused sick leave, is also eligible
for payment upon separation. The City accrues accumulated unpaid vacation and sick leave (when
eligible) when earned (or estimated to be earned) by the employee. The total compensated
absences liability is reported on the government‐wide statements and in each proprietary fund.
12. Fund Equity
Fund equity at the governmental fund level is classified as fund balance. Fund equity for all other
reporting is classified as net position.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-20
NOTES TO THE FINANCIAL STATEMENTS
Fund balance represents the difference between the current assets and current liabilities in the
governmental fund financial statements. Fund balance classifications comprise of a hierarchy based
primarily on the extent to which the City is bound to honor constraints on the specific purpose for which
amounts in those funds can be spent. Fund balances are classified as follows:
a. Nonspendable – items that cannot be spent due to form; inventories, prepaid amounts, long‐term
loan receivables, or amounts that must be maintained intact legally.
b. Restricted – amounts constrained for specific purposes imposed through the judicial process
and enabling legislation adopted by the City; or through external restrictions imposed by creditors,
grantors, or laws or regulations of other governments.
c. Committed – amounts constrained by the City Council. Only the Council can, by ordinance,
establish, modify, or rescind constraints on committed fund balances.
d. Assigned – constraints imposed by the City Council for amounts intended for specific purposes, but
do not meet the criteria of restricted or committed. It is the City’s policy that intent of use can
be assigned by the City Council, or by a designated official, adopted through either the biennial
budget ordinance or an amending budget ordinance. For governmental funds, other than the
General Fund, the residual fund balance that is not restricted or committed is reported as assigned
because the use of fund balance, at a minimum, should be used for the purpose of that fund.
Additional action does not need to be taken to remove an assignment, whereas additional action is
essential to remove a commitment.
e. Unassigned – any remaining fund balance in the General Fund that does not meet any of the above
criteria. The General Fund is the only fund that reports a positive unassigned fund balance amount.
In other governmental funds, not the General Fund, may report a negative unassigned fund balance
if expenditures incurred for a specific purpose exceed the amounts of restricted, committed, or
assigned amounts to those purposes.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-21
NOTES TO THE FINANCIAL STATEMENTS
The following shows the composition of the fund balance in governmental funds for the year
ended December 31, 2017:
Fund balance flow assumptions ‐ when multiple categories of fund balance are available for
incurred expenditures, it is the City’s policy to consider restricted fund balance to have been
depleted before using any of the components of unrestricted fund balance (the total of committed,
assigned, and unassigned fund balance). Further, when the components of unrestricted fund
balance can be used for the same purpose, committed fund balance is depleted first, followed by
assigned fund balance. Unassigned fund balance is applied last.
Net position reflects the difference between assets and liabilities, in the government‐wide and
proprietary fund statement of net position. The component net investment in capital assets consists
of capital assets, net of accumulated depreciation, reduced by any outstanding balances of any
borrowing (ex. bonds or loans and related deferred amounts on refunding) for the acquisition,
construction, or improvement of those assets. The net position is reported as restricted when
there are limitations imposed on their use either through enabling legislation adopted by the
City or through external restrictions imposed by creditors, grantors, or laws or regulations of
other governments. The balance of the net position is reported as unrestricted.
General
Municipal
Facilities CIP
Capital
Improvement
Other
Governmental Total
Restricted
Cable Franchise Fees ‐$ $ ‐ ‐$ $ 472,221 $ 472,221
CDBG Loans Receivable 397,849 ‐ ‐ ‐ 397,849
Culture and Recreation 1,774 43,763 ‐ ‐ 45,537
Family First Center ‐ Donations 157,880 157,880
Hotel/Motel Tax ‐ ‐ 480,883 480,883
Economic Environment 1,395 1,395
Judicial 11,304 ‐ ‐ ‐ 11,304
King County Pa rks Levy ‐ 454,852 ‐ ‐ 454,852
Impact Mitigation Fees ‐ 119,280 972,363 2,718,774 3,810,417
Public Safety 929,288 ‐ ‐ ‐ 929,288
REET ‐ 7,040,207 ‐ ‐ 7,040,207
Renton Community Marketing Campaign 34,629 34,629
Transportation 218,033 218,033
Wetlands Mitigation Bank ‐ ‐ ‐ 336,337 336,337
Total Restricted 1,341,610 7,815,982 972,363 4,260,877 14,390,832
Committed
1% for Art ‐ ‐ ‐ 103,050 103,050
Ca pital Parks and Facilities Projects ‐ 6,827,135 ‐ ‐ 6,827,135
Capital Street Improvements ‐ ‐ 4,833,258 ‐ 4,833,258
Total Committed ‐ 6,827,135 4,833,258 103,050 11,763,443
Assigned
Culture and Recreation 4,667,266 ‐ ‐ ‐ 4,667,266
Capital Parks and Facilities Projects ‐ 12,432,767 ‐ ‐ 12,432,767
Debt Service ‐ ‐ ‐ 2,359,933 2,359,933
Economic Stabilization 2,500,000 ‐ ‐ 2,500,000
Human Services 796,380 ‐ ‐ ‐ 796,380
Leased City Properties 84,877 ‐ ‐ ‐ 84,877
Transportation 3,305,113 ‐ 968,894 ‐ 4,274,007
Total Assigned 8,853,636 14,932,767 968,894 2,359,933 27,115,230
Unassigned
Unassigned 29,077,267 ‐ ‐ ‐ 29,077,267
Total Unassigned 29,077,267 ‐ ‐ ‐ 29,077,267
Total fund balances 39,272,513$ 29,575,884$ 6,774,515$ 6,723,860$ 82,346,772$
December 31, 2017
Governmental Fund Balances
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-22
NOTES TO THE FINANCIAL STATEMENTS
The following shows the composition of the restricted net position balances reported in the
government‐wide and proprietary fund statements for the year ended December 31, 2017:
Net position flow assumptions – In order to calculate the amounts to be reported as restricted
net position and unrestricted net position on the government‐wide and proprietary fund
statements, a flow assumption is made. It is the City’s policy to consider restricted net position to
have been depleted before unrestricted net position.
Minimum fund balance policy – The City Council has adopted a financial policy to maintain a
minimum level of unrestricted fund balance in the general fund. The target level is set at 12
percent, with a minimum of 8 percent, of general fund operating expenditures. This amount is
intended to provide fiscal stability when economic downturns and other unexpected events occur.
Stabilization fund policy – The City has adopted a comprehensive stabilization policy that helps
provide stability through uncertain times. This allows for temporary cushion and flexibility when
needed. The City Council, through ordinance, has established the following stabilization reserves:
1. Economic development revolving fund reserve: the City will be accumulating reserves until
the target accumulation of $2.5 million is reached. These reserves will fund the City’s matching
requirement for the use of state Local Revitalization Financing. Expenditure utilizing this
reserve will require a two‐thirds majority vote of the City Council.
2. Catastrophic reserve: the City will maintain a targeted amount of 8 percent for risk management
reserves, for catastrophic emergencies. Expenditure utilizing this reserve will require a two‐
thirds majority vote of the City Council.
Governmental
Activities
Business‐Type
Activities Total
Restricted Net Position
Cable Franchise Fees 472,221$ ‐$ 472,221$
CDBG Loans Receivable 397,849 ‐$ 397,849
Culture and Recreation 45,537 ‐ 45,537
Family First Center 157,880 ‐ 157,880
Hotel/Motel Tax 480,883 ‐ 480,883
Economic Environment 1,395 ‐ 1,395
Judicial 11,304 ‐ 11,304
King County Parks Levy 454,852 ‐ 454,852
Impact Mitigation Fees 3,810,417 ‐ 3,810,417
Public Safety 929,288 ‐ 929,288
R EET 7,040,207 ‐ 7,040,207
Renton Community Marketing Campaign 34,629 ‐ 34,629
Transportation 218,033 ‐ 218,033
Wetlands Mitigation Bank 336,337 ‐ 336,337
Debt Service ‐ 2,810,145 2,810,145
Pensions 16,913,669 ‐ 16,913,669
Total Restricted Net Position $ 31,304,501 $ 2,810,145 $ 34,114,645
December 31, 2017
Restricted Net Position
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-23
NOTES TO THE FINANCIAL STATEMENTS
3. Anti‐recessionary reserve: the City will maintain a targeted reserve equal to 4 percent of the
general fund operating expense. Expenditures utilizing this reserve will require a two‐thirds
majority vote of the City Council and must be replenished within three years.
4. Annexation sales tax credit expiration/transition reserve: to help support debt service
obligations between the time the annexation sales tax credit expires (mid‐2018) and when the
downtown parking garage and library bond are paid (2022). Expenditures utilizing this reserve
will require a two‐thirds majority vote of the City Council.
5. General obligation bond payment reserve: for all councilmatic, general obligation bonds
issued after 2013, a one year payment reserve shall be established. The only bonds issued
since this provision are the 2015 General Obligation Refunding Bonds.
E. REVENUES, EXPENDITURES, AND EXPENSES
1. Operating Revenues and Expenses
Proprietary funds distinguish operating revenues and expenses from non‐operating revenues
and expenses. Operating revenue and expense generally result from providing services and
producing and delivering goods in connection with a proprietary fund’s principal ongoing
operations. The principal operating revenue of the waterworks utility, solid waste, airport, golf
course, and internal service funds are charges to customers for sales and services. The waterworks
utility also recognizes water meter installation fees, and wastewater and surface water
construction permit fees as operating revenue because these charges are intended to offset the
cost of connecting new customers to the system. Operating expense for proprietary funds and
internal service funds include the cost of sales and services, administrative expenses, and
depreciation of capital assets. All revenues and expenses not meeting this definition are reported
as non‐operating revenue and expense.
2. Program Revenue
Amounts reported as program revenue, on the government‐wide statement of activities,
include: 1) charges for customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function and 2) grants and contributions that are
restricted to meeting the operation or capital requirements of a given function. All taxes, including
those dedicated to specific purposes, are reported as general revenue rather than program revenue.
3. Capital Contributions
Capital contributions reported in the proprietary fund statements and the government‐wide
statements reflect the value of outside contributions of capital assets (i.e. developers, land
donations), capital grants, special assessments, and system development charges.
4. Interfund Activity
Exchange transactions between funds are reported as revenue in the selling fund and as an
expenditure/expense in the purchasing funds. On the government‐wide statement of activities, the
exchange transactions between the internal service funds and the user funds are eliminated.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-24
NOTES TO THE FINANCIAL STATEMENTS
Flows of cash or goods from one fund to another without a requirement of repayment are reported
as interfund transfers in/out. Interfund transfers in/out are reported as other financing sources/uses
in the governmental funds and following non‐operating revenues and expenses in the proprietary
funds. In the government‐wide statement of activities, transfers between governmental and
business‐type activities are reported as general revenue. Transfers between funds in governmental
activities are eliminated and transfers between funds in business‐type activities are eliminated.
5. Expenditures/Expenses
Expenses in the Government‐wide Statement of Activities are reported by function as a
governmental activity (general government, judicial, public safety, utilities, transportation,
economic environment, health and human services, culture and recreation), interest on long‐term
debt, or business‐type activity (waterworks utility, airport, solid waste utility, or golf course). In the
fund financial statements, expenditures of governmental funds are classified by: function, debt
service principal and interest payments, or purchases of capital items. Proprietary expenditures are
classified as operating or non‐operating.
The City recovers certain administrative costs through indirect cost allocations to departments city‐
wide. These allocated costs are consolidated and reported by function in the government‐wide
statement of activities.
NOTE 2. COMPLIANCE AND ACCOUNTABILITY
The City of Renton budgets its funds under Generally Accepted Accounting Principles (GAAP) at the fund
level. Annual appropriated budgets are adopted for governmental funds on a biennial basis. Budgets for
proprietary funds are “management budgets” and are not legally required to be reported. Included in
the Required Supplemental Information and Combining Statements sections of the CAFR are Schedules
of Revenues, Expenditures, and Changes in Fund Balances (Budget to Actual) reporting the Actual
Budgetary GAAP Basis verses Actual GAAP Basis of Accounting for all legally adopted budgets. There have
been no material violations of finance‐related legal or contractual provisions, and there have been no
expenditures exceeding legal appropriations in any of the funds of the City. At year‐end 2017, the City
of Renton noted the Firefighters’ Pension Funds exceeded its final adopted “management budget” by
$41,623 and the Solid Waste Utility Fund exceeded its final adopted “management budget” by $311,319.
A. PROCEDURES FOR ADOPTING THE ORIGINAL BUDGET
The City of Renton’s biennial budget procedures are mandated by the Chapter 35A.33 of the Revised
Code of Washington (RCW). The steps in the budget process are as follows:
1. Prior to November 1, the Mayor submits a proposed budget to the City Council. This budget is based
on priorities established by the Council; estimates provided by the City departments during the
preceding months; balanced by revenue estimates made by the Mayor; and includes reserves for
various contingencies.
2. The City Council conducts public hearings on the proposed budget in November and December.
3. The Council makes their adjustments to the proposed budget and adopts, by ordinance, a final
balanced budget no later than December 31.
4. The final operating budget, as adopted, is published and distributed within the first four months of
the following year.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-25
NOTES TO THE FINANCIAL STATEMENTS
B. AMENDING THE BUDGET
The budget, as adopted, constitutes the legal authority for expenditures. Budgets are adopted on the
GAAP basis of accounting. Any comparisons between budget and actual revenues and expenditures are
reported under the GAAP basis. The biennial budget is adopted with budgetary control at the fund level,
so expenditures may not legally exceed appropriations at that level of detail. Transfers or revisions within
funds are allowed, but only the City Council has the legal authority to increase or decrease a given fund’s
annual budget. This is accomplished by City ordinance. Adopted budgets lapse at year‐end and must be
re‐appropriated (carried forward) the next fiscal year. The budget was amended three times during
2017.
Original budgeted inflows as compared to the final budgeted inflows are as follows:
Original Final (Decrease)
Budgeted Budgeted Budgeted
Fund Inflows Inflows Inflows
General Fund 96,501,354$ 99,482,489$ 2,981,135$
Arterial Street Fund 660,000 660,000 ‐
Hotel/Motel Tax Fund 265,000 225,000 (40,000)
1% for Art Fund 24,505 24,505 ‐
Cable Communications Development Fund 122,674 122,674 ‐
General Debt Fund 5,975,325 5,975,325 ‐
Community Development Impact Mitigation Fund 86,500 406,014 319,514
Fire Impact Mitigation Fund 99,000 99,000 ‐
Transportation Impact Mitigation Fund 620,000 620,000 ‐
Municipal Facilities CIP F u nd 10,352,000 16,280,013 5,928,013
Capital Improvement Fund 11,306,652 20,512,188 9,205,536
Airport Fund 3,122,486 3,405,842 283,356
Solid Waste Utility Fund 19,187,851 19,187,851 ‐
Golf Course Fund 2,833,044 2,893,044 60,000
Waterworks Utility Fund 56,600,853 71,264,079 14,663,226
Equipment Rental Fund 17,952,440 18,578,806 626,366
Insurance Fund 12,335,476 16,435,476 4,100,000
Firefighters' Pension 468,000 468,000 ‐
TOTAL 238,513,160$ 276,640,307$ 38,127,145$
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-26
NOTES TO THE FINANCIAL STATEMENTS
Original budgeted outflows as compared to the final budgeted outflows are as follows:
NOTE 3. DEPOSITS AND INVESTMENTS
Cash and Cash Equivalents and Investments
Cash and cash equivalents are generally considered short‐term, highly liquid investments with a maturity
of three months or less from the purchase date.
Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value
Measurement and Application. Accordingly, the change in fair value of investments is recognized as an
increase or decrease to investment assets and investment income.
A. Deposits
Custodial Credit Risk
Custodial credit risk is the risk that in the event of a failure of the counterparty to an investment
transaction the City would not be able to recover the value of the investment or collateral securities.
The City’s deposits and certificates of deposit are entirely covered by the Federal Depository Insurance
Corporation (FDIC) or held in a multiple financial institution collateral pool administrated by the State of
Washington Public Deposit Protection Commission (PDPC).
Increase
Original Final (Decrease)
Budgeted Budgeted Budgeted
Fund Outflows Outflows Outflows
General Fund 93,982,079$ 105,004,226$ 11,022,147$
Arterial Street Fund 660,000 660,000 ‐
Hotel/Motel Tax Fund 265,000 400,994 135,994
1% for Art Fund 15,000 117,950 102,950
Cable Communications Development Fund 122,674 122,674 ‐
General Debt Fund 6,066,629 6,066,629 ‐
Community Development Impact Mitigation Fund ‐ 54,074 54,074
Fire Impact Mitigation Fund 158,696 158,696 ‐
Transportation Impact Mitigation Fund 1,005,000 1,890,000 885,000
Muni cipal Facilities CIP Fund 6,399,775 21,301,741 14,901,966
Capital Improvement Fund 12,010,711 25,094,010 13,083,299
Airport Fund 3,894,902 5,688,023 1,793,121
Solid Waste Utility Fund 19,010,175 19,024,775 14,600
Golf Course Fund 2,539,041 2,630,288 91,247
Waterworks Utility Fund 64,496,436 100,082,061 35,585,625
Equipment Rental Fund 18,744,557 21,252,122 2,507,565
Insurance Fund 12,768,437 12,774,232 5,795
Firefighters' Pension Fund 210,475 210,475 ‐
TOTAL 242,349,587$ 322,532,970$ 80,183,383$
Deposits Deposits at 12/31/2017
Bank Deposits 65,624,496$
Non‐negotiable Certificates of Deposit (CD's)30,803,394
TOTAL DEPOSITS 96,427,890$
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-27
NOTES TO THE FINANCIAL STATEMENTS
B. Investments
Investments that are not Measures at Fair Value
As of December 31, 2017, the City had the following investments at amortized cost:
The City is a participant in the Local Government Investment Pool authorized by Chapter 294, Laws of
1986, and is managed and operated by the Washington State Treasurer. The State Treasurer is
responsible for establishing the investment policy for the pool and reviews the policy annually and
proposed changes are reviewed by the LGIP advisory Committee.
Investments in the LGIP, a qualified external investment pool, are reported at amortized cost which
approximates fair value. The LGIP is an unrated external investment pool. The pool portfolio is invested
in a manner that meets the maturity, quality, diversification and liquidity requirements set forth by the
GASBS 79 for external investments pools that elect to measure, for financial reporting purposes,
investments at amortized cost. The LGIP does not have any legally binding guarantees of share values.
The LGIP does not impose liquidity fees or redemption gates on participant withdrawals. The Office of
the State Treasurer prepares a stand‐alone LGIP financial report. A copy of the report is available from
the Office of the State Treasurer, PO Box 40200, Olympia, Washington 98504‐0200, online at
http://www.tre.wa.gov.
Investments Measured at Fair Value
The City measures and records its investments within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. The guidelines recognize a three‐tiered fair value hierarchy, as follows:
Level 1: Quoted prices in active markets for identical assets or liabilities;
Level 2: These are quoted market prices for similar assets or liabilities, quoted prices for identical or similar
assets or liabilities in markets that are not active, or other than quoted prices that are not
observable.
Level 3: Unobservable inputs for an asset or liability.
At December 31, 2017 the City had the following recurring fair value measurements:
Security Type Amortized Cost
Local Government Investment Pool (LGIP)90,923,543$
Non‐negotiable CD's 30,803,394
TOTAL INVESTMENTS 121,726,936$
Security Type Total
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
U.S. Agency Securities 16,270,016$ 16,270,016$
TOTAL INVESTMENTS 16,270,016$ 16,270,016$
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-28
NOTES TO THE FINANCIAL STATEMENTS
The City invests excess and inactive funds in accordance with the City’s Investment Policy (last updated
and approved on February 23, 2009), which complies with the guidelines within Chapter 35A.40.050 of
the Revised Code of Washington (RCW). This allows for the investment of excess cash and inactive cash,
directs that the responsibility for determining available cash for investment is placed upon the
department administering the funds, and allows for pooling of the cash provided that the allocation of
income is proportionate to the investment of each fund. Currently, the City invests in obligations of the
U.S. Government, U.S. agency issues, and Certificates of Deposit with Washington State banks and
savings and loan institutions as allowed by RCW.
Investments are shown on the Government‐Wide Statement of Net Position at fair value. Investments
are reported within Cash and Investments of Governmental Activities and within Cash and Cash
Equivalents or Investments of Business‐Type Activities.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
The City invests in US Treasury securities which are considered free of credit risk, and in securities backed
by the full faith and credit of the U.S. Government as well as U.S. government sponsored enterprises
including Federal National Mortgage Association, Federal Loan Mortgage Corporation, and Federal Farm
Credit Bank.
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates over time, will adversely affect the fair value of
an investment. The City’s portfolio is managed within the parameters established by the Investment
Policy, which limits the weighted average maturity of the portfolio to five years. The City has one FNMA
bond with call provisions that fall in the first six months of 2017.
Investment Type Cost Fair Value Moody's
S&P
Local Government Investment Pool (LGIP)90,923,543$ 90,923,543$ unrated unrated
Certificates of Deposit 30,803,394 30,803,394 N/A N/A
Federal Farm Credit Bank 3,913,711 3,902,244 Aaa AA+
Federal National Mortgage Association 4,889,693 4,863,437 Aaa AA+
Federal Home Loan Mortgage Corporation 7,582,815 7,504,335 N/A N/A
TOTAL INVESTMENTS 138,113,156$ 137,996,953$
Investment Type Cost Fair Value
Average
Interest
Rate
Local Government Investment Pool (LGIP)90,923,543$ 90,923,543$ 1.278%
Certificates of Deposit 30,803,394 30,803,394 1.357%
Federal Farm Credit Bank 3,913,711 3,902,244 1.250%
Federal National Mortgage Association 4,889,693 4,863,437 1.060%
Federal Home Loan Mortgage Corporation 7,582,815 7,504,335 1.610%
TOTAL INVESTMENTS 138,113,156$ 137,996,953$
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-29
NOTES TO THE FINANCIAL STATEMENTS
Investment Type
0‐6
months
6 months ‐
1 year
1‐3
years
3+
years Totals
Local Government Investment Pool (LGIP) 90,923,543$ ‐$ ‐$ ‐$ 90,923,543$
Certificates of Deposit 4,982,239 5,929,524 14,848,406 5,043,225 30,803,394
Federal Farm Credit Bank ‐ 3,902,244 ‐ ‐ 3,902,244
Federal National Mortgage Association ‐ 4,863,437 ‐ 4,863,437
Federal Home Loan Mortgage Corporation ‐ ‐ 7,504,335 ‐ 7,504,335
TOTAL INVESTMENTS 95,905,782$ 14,695,205$ 22,352,741$ 5,043,224$ 137,996,954$
The City’s Investment Policy directs that the standard of prudence for investment activities shall be the
Prudent Investor Standard that states: “Investments shall be made with judgment and care, under
circumstances then prevailing, which person of prudence, discretion, and intelligence would use in the
management of their own affairs, not for speculation, but for investment purposes, considering the
probable safety of their capital as well as the probable income to be derived.”
Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude
of a government’s investment in a single issuer. The City diversifies its investment instruments to avoid
incurring unreasonable risk inherent with the over‐investment of instruments and issuers using the
following target distribution as a guide during normal economic times while allowing flexibility when
appropriate. The City’s individual issuers are less than 5% of total investments or are otherwise excluded
from this disclosure due to the low risk nature of the investment.
Target Maximum per Policy
Instrument
Maximum
Issuer
Maximum
U.S. Treasuries 100% 100%
U.S. Agencies 75% 50%
Certificates of Deposit (within WPDPC) 75% 20%
Local Governmental Investment Pool (LGIP) 75% 75%
Commercial Paper 25% 5%
Custodial Credit Risk – Investments. Custodial credit risk for investments is the risk that, in the event of
the failure of the counter party to a transaction, a government will not be able to recover the value of
investment or collateral securities that are in the possession of an outside party. All security transactions,
including collateral for repurchase agreements, entered into by the City are conducted on a delivery‐
versus‐payment (DVP) basis and are held in our safekeeping trust account with Wells Fargo under terms
negotiated by the State of Washington.
NOTE 4. PROPERTY TAXES
The King County Finance Director acts as an agent to collect property taxes levied in the county for all
taxing authorities. Taxes are levied annually, January 1, on property value listed as of the prior August
31. Assessed values are established by the King County Assessor at 100 percent of fair market value. A
revaluation of all property is required every two years; however, King County has the ability to revalue
annually.
Property taxes levied by the King County Assessor and collected by the King County Finance Director
become a lien on the first day of the levy year and may be paid in two equal installments if the total
amount exceeds $30. The first half of real property taxes is due on April 30 and the balance is due
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-30
NOTES TO THE FINANCIAL STATEMENTS
October 31. Delinquent taxes bear interest at the rate of 12 percent and are subject to additional
penalties if not paid as scheduled. No allowance for uncollectible taxes is established because delinquent
taxes are considered fully collectible.
At year‐end, property taxes are recorded as a receivable with the portion not expected to be collected
within 60 days offset by unavailable revenue. During the year, property tax revenues are recognized
when cash is received.
The tax rate for general City operations is limited to $3.10 per $1,000 of assessed value (RCW 84.52.043).
This reflects a reduction of $0.50 per $1,000 as a result of the annexation to the King County Library
System. In addition to this amount, up to $0.225 (22.5 cents) per $1,000 may be designated for
contribution to the Firemen’s Pension Fund. If a report by a qualified actuary on the condition of the
Firemen’s Pension Fund establishes that this amount (or portion of) is not necessary to maintain the
actuarial soundness of the fund, the amount can be used for any other municipal purpose (RCW
41.16.060).
The tax rate limit may be reduced for any of the following reasons:
1. The Levy Limit: the levy limit calculation applies to a taxing district’s budget, and not to increases in
the assessed value or tax bill of individual properties. Initiative 747 which restricted individual taxing
districts from collecting, in any year, more than a one percent increase in their regular, non‐voted,
levy over the highest levy amount since 1985 was overturned by the courts. However during 2007,
the state legislature reinstated this limit with the passage of HB2416. New construction, annexations,
and excess levies approved by the voters are not included in the levy limit calculation. If the assessed
valuation increases by more than one percent due to revaluation, the levy rate will be decreased.
2. The One Percent Constitution Limit: The Washington State Constitution limits the regular (non‐
voted) combined property tax rate applied to an individual’s property to one percent ($10 per
$1,000) on the market valuation. Voters may approve special levies that are added to this figure. If
the taxes of all districts exceed this amount, each is proportionately reduced until the total is at or
below the one percent limit.
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations. There is currently no
excess levy for General Obligation Bond debt. The City’s regular levy per the King County Assessor’s 2017
Annual Report is $1.61.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-31
NOTES TO THE FINANCIAL STATEMENTS
NOTE 5. CAPITAL ASSETS AND DEPRECIATION
Depreciation and amortization was charged to the functions as follows:
Depreciation Amortization Total
General Government $ 1,215,426 $ ‐ 1,215,426$
Judicial ‐ 6,700 6,700
Public Safety 330,979 1,529 332,508
Physical Environment 460,001 ‐ 460,001
Transportation 6,053,313 8,678 6,061,991
Economic Development 494,420 ‐ 494,420
Culture and Recreation 1,432,327 ‐ 1,432,327
Health and Human Services 53,366 ‐ 53,366
Internal Service Funds (General Governmental) 2,121,793 146,348 2,268,141
$ 12,161,625 $ 163,255 $ 12,324,880
Depreciation Amortization Total
Waterworks $ 8,938,726 $ 45,713 8,984,439$
Airport 1,151,094 ‐ 1,151,094
Golf Course 209,657 ‐ 209,657
$ 10,299,477 $ 45,713 $ 10,345,190
Total‐Governmental Activities
Total‐Business‐Type Activities
Governmental Activities
Business‐Type Activities
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-32
NOTES TO THE FINANCIAL STATEMENTS
Beginning Ending
Balance Increases Decreases Reallocation Balance
Governmental activities :
Capital assets, not being depreciated:
Land and land improvements $ 204,962,458 $ 1,647,649 $ 11,011 $ 4,073,095 $ 210,672,191
Construction in progress 16,661,418 9,913,756 ‐ (6,240,733) 20,334,441
Total capital assets, not being depreciated 221,623,876 11,561,405 11,011 (2,167,638) 231,006,632
Capital assets, being depreciated:
Buildings and structures 79,498,850 ‐ ‐ ‐ 79,498,850
Other improvements 295,164,352 4,238,930 69,789 1,878,562 301,212,055
Machinery and equipment 28,159,007 3,152,920 1,058,224 41,126 30,294,829
Total capital assets being depreciated 402,822,209 7,391,850 1,128,013 1,919,688 411,005,734
Less accumulated depreciation for:
Buildings and structures 35,736,440 2,166,448 ‐ ‐ 37,902,888
Other improvements 91,318,422 7,718,504 41,444 ‐ 98,995,482
Machinery and equipment 19,564,306 2,276,673 954,389 ‐ 20,886,590
Total accumulated depreciation 146,619,168 12,161,625 995,833 ‐ 157,784,960
Total capital assets, being depreciated, net 256,203,041 (4,769,775) 132,180 1,919,688 253,220,774
Intangible Assets:
Intangible assets, being amortized 4,599,670 87,715 ‐ 5,719 4,693,104
Less accumulated amortization 4,183,475 163,255 ‐ ‐ 4,346,730
Total intangible asset, being amortized, net 416,195 (75,540) ‐ 5,719 346,374
Total Intangible assets 416,195 (75,540) ‐ 5,719 346,374
Governmental activities capital assets, net $ 478,243,112 $ 6,716,090 $ 143,191 $ (242,231) $ 484,573,780
Business‐type activities:
Capital assets, not being depreciated:
Land and land improvements $ 6,150,056 $ ‐ $ ‐ $ ‐ $ 6,150,056
Construction in progress 14,975,253 5,438,283 ‐ (6,076,987) 14,336,549
Total capital assets, not being depreciated 21,125,309 5,438,283 ‐ (6,076,987) 20,486,605
Capital assets, being depreciated:
Buildings and structures 17,735,369 ‐ 159,022 ‐ 17,576,347
Other improvements 414,993,449 6,093,423 8,870,404 6,319,218 418,535,686
Machinery and equipment 2,825,858 95,322 ‐ ‐ 2,921,180
Total capital assets being depreciated 435,554,676 6,188,745 9,029,426 6,319,218 439,033,213
Less accumulated depreciation for:
Buildings and structures 8,079,700 427,035 159,022 ‐ 8,347,713
Other improvements 140,135,853 9,747,652 7,460,404 ‐ 142,423,101
Machinery and equipment 1,862,755 124,791 ‐ ‐ 1,987,546
Total accumulated depreciation 150,078,308 10,299,478 7,619,426 ‐ 152,758,360
Total capital assets, being depreciated, net 285,476,368 (4,110,733) 1,410,000 6,319,218 286,274,853
Intangible Assets:
Intangible assets, not being amortized 811,000 ‐ ‐ ‐ 811,000
Intangible assets, being amortized 527,222 ‐ ‐ ‐ 527,222
Less accumulated amortization 249,132 45,713 ‐ ‐ 294,845
Total intangible asset, being amortized, net 278,090 (45,713) ‐ ‐ 232,377
Tota l Intangible assets 1,089,090 (45,713) ‐ ‐ 1,043,377
Business‐type activities capital assets, net $ 307,690,767 $ 1,281,837 $ 1,410,000 $ 242,231 $ 307,804,835
Capital asset activity for the year ended December 31, 2017 was as follows:
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-33
NOTES TO THE FINANCIAL STATEMENTS
At the end of 2017, a total of 41 projects comprise the Construction in Progress. Upon completion, the
projects will be reallocated to their appropriate categories. Construction commitments as of December
31, 2017, are as follows:
Governmental Activities Projects:
Construction
in progress
Remaining
Commitment
Public Art at S. 2nd and S. Main 13,950$ ‐$
Rooftop Dragon at S. 3rd St and Wells Ave S.50,683 41,468
Sign Shop Improvements 31,776 ‐
Fire Station 15 480,720 389,989
Regis Park Athletic Field Expansion 72,058 14,760
Sunset EIS Park 1,676,880 1,261,917
Kenyon Property Building 73,991 ‐
Kenyon Property Instahot Wa ter Heater 10,556 ‐
Boathouse Dock Replacement 13,783 51,861
Sunset Lane 4,874,790 159,080
Park Ave Extension 100,091 143,956
Rainier Ave S/N Phase 4125,718 709,972
Logan Ave NE 6,800,304 402,517
31st St Bridge Replacement 463,507 69,889
Duvall Ave 7th to Sunset 346,274 230,908
Maplewood Sidewalk Ext ‐ SE 5th St 304,773 601,181
Lake Washington Loop Trail 597,219 174,326
Main Ave S Downtown Circle 3,219,565 177,982
Williams Ave S & Wells Ave S Conversion 128,030 209,660
Carr Road Improvements 786,335 24,544
City Website ReDesign ‐ CivicLive 66,375 ‐
Online B&O Reporting‐Praxis 26,211
Perfect Mind Recreation Software 30,487 ‐
Police Substation HVAC 21,734 ‐
Eliptical Cardio Steppers for Liberty Park (3)18,631
Total governmental activities 20,334,441$ 4,664,009$
Business‐Type Activities Projects:
Construction
in progress
Remaining
Commitment
Airport Office Rehab 315,110$ 419$
Renton Hill Main Replacement 368,078 1,967,585
Highlands 435 ‐ Resevoirs Replacement 1,584,261 444,974
Kennydale 320‐Reservoir 541,857 599,237
Renton Hill Sewer Replacement 86,394 1,525,933
Falcon Ridge LS Rehab 102,985 38,411
Thunder Hills Sanitary 358,282 104,504
2015 Sanitary Sewer Rehab/Replacment 146,930 ‐
Highlands Mainline and Manhole Repairs 13,097
Highlands Mainline Rehabilitation 1,300,343 28,032
Sunset Lane Area Sewer Replacement 435,247 ‐
Hardie Ave S Underpass SS Imp 7,563,968 179,343
Harrington Ave Retrofit 605,651 544,382
Controllers for Telemetry System 14,661 15,847
Sunset Lane NE Storm System Improvement 636,947 10,400
Renton Hill Storm System Improvement 262,738 1,453,018
Total business‐type activities 14,336,549$ 6,912,085$
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-34
NOTES TO THE FINANCIAL STATEMENTS
NOTE 6. PENSION PLANS
For purposes of measuring the net pension liability/asset, deferred outflows and inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of the Plans and
additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis
as they are reported by the State of Washington Department of Retirement Systems (DRS). For this
purpose, benefit payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
General Information about the Pension Plans
With the exception of firefighters employed prior to March 1, 1970, substantially all the City’s full‐time
and qualifying part‐time employees are eligible to participate in one of the following statewide
retirement systems administered by the Washington State Department of Retirement Systems:
Public Employees’ Retirement System (PERS) Plans 1, 2, and 3
Law Enforcement Officers’ and Firefighters’ Retirement System (LEOFF) Plans 1 and 2
Public Safety Employees’ Retirement System (PSERS) Plan 2
The Department of Retirement Systems (DRS), a department within the primary government of the State
of Washington, issues a publicly available comprehensive annual financial report (CAFR) that includes
financial statements and required supplementary information for each plan. The DRS CAFR may be
obtained by contacting the Washington State Department of Retirement Systems, P.O. Box 48380,
Olympia, WA 98504‐8380; or online from the DRS website at www.drs.wa.gov.
The City is the administrator of the Firefighters’ Pension Plan for all firefighters employed prior to March
1, 1970. The Firefighters’ Pension Plan is included within the City of Renton’s statements as a pension
trust fund. There is no separate GAAP‐based audited report. A schedule of employer contributions,
prepared by Milliman, Inc. is included in the Required Supplemental Information section. Additional
information from the actuarial report prepared for the Firefighters’ Pension Plan, by Milliman, Inc., may
be obtained by contacting the City of Renton, Finance Division, 1055 South Grady Way, Renton, WA
98057.
A. State Sponsored Pension Plans
Public Employees’ Retirement System (PERS)
Plan description. PERS was established by the state legislature in 1947 under the Revised Code of
Washington (RCW) chapter 41.40. PERS is a multiple‐employer cost‐sharing retirement system.
Membership in the system includes: elected officials; state employees; employees of the Supreme,
Appeals, and Superior Courts (other than judges currently in a judicial retirement system); employees of
legislative committees; community and technical colleges, college and university employees not in
national higher education retirement programs; judges of district and municipal courts; and employees
of local governments.
PERS consists of three plans. PERS participants, who joined the PERS system by September 30, 1977, are
Plan 1 members. Plan 1 is closed to new members. Those who joined on or after October 1, 1977; and
by either, February 28, 2002 for state and higher education employees, or August 31, 2002 for local
government employees, are Plan 2 members unless they exercise an option to transfer their membership
to Plan 3. PERS participants joining the system on or after March 1, 2002 for state and higher education
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-35
NOTES TO THE FINANCIAL STATEMENTS
employees, or September 1, 2002 for local government employees, have the irrevocable option of
choosing membership in either PERS Plan 2 or PERS Plan 3. The option must be exercised within 90 days
of employment. An employee is reported in Plan 2 until a choice is made. Employees who fail to choose
a plan within 90 days default to PERS Plan 3.
Benefits provided. PERS plans provide retirement, disability, and death benefits to eligible members.
PERS Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members
are eligible for retirement after 30 years of service, or at the age of 60 with five years of service, or at
the age of 55 with 25 years of service. The monthly benefit is two percent of the average final
compensation (AFC) per year of service, capped at sixty percent. The AFC is the average of the member’s
24 highest consecutive service months. Plan 1 members who retire from inactive status prior to the age
of 65 may receive actuarially reduced benefits. Plan 1 members may elect to receive an optional cost of
living allowance (COLA) that provides an automatic annual adjustment based on the Consumer Price
Index. The adjustment is caped at three percent annually. To offset the cost of this annual adjustment
the benefit is reduced.
PERS Plan 2 members are vested after completion of five years of eligible service. Plan 2 members are
eligible for normal retirement at the age of 65 with five years of service. The monthly benefit is two
percent of the AFC per year of service. There is no cap on years of service credit and a COLA is granted
based on the Consumer Price Index, capped at three percent annually. The AFC is the average of the
member’s 60 highest paid consecutive months. Plan 2 members have the option to retire early with
reduced benefits.
PERS Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit component,
and member contributions finance a defined contribution component. The defined benefit portion
provides members a monthly benefit that is one percent of the AFC per year of service. There is no cap
on years of service credit. Plan 3 provides the same COLA as Plan 2. The AFC is the average of the
member’s 60 highest paid consecutive months. Effective June 7, 2006, Plan 3 members are vested in the
defined benefit portion of their plan after ten years of service; or after five years of service, if twelve
months of that service are earned after age 44; or after five service credit years earned in PERS Plan 2
by June 1, 2003. Plan 3 members are immediately vested in the defined contribution portion of their
plan.
The Judicial Benefit Multiplier (JBM) Program began January 1, 2007. This program gave eligible justices
and judges an option to increase the benefit multiplier used in their retirement benefit calculation for
their judicial service period of employment. Beginning January, 2007, any justice or judge who was in a
judicial position at that time could choose to join JBM. Any justice or judge elected or appointed to office
on or after January 1, 2007, who elects to join DRS membership will also be mandated into JBM. If they
have already established membership in PERS or TRS Plan 1 they will rejoin that plan, but if they have
never had membership they will be enrolled as a member of both PERS Plan 2 and JBM.
Contributions. PERS defined benefit retirement benefits are financed from a combination of investment
earnings and employer and employee contributions. Each biennium, the state Pension Funding Council
adopts Plan 1 employer contribution rates, Plan 2 employer and employee contribution rates, and Plan
3 employer contribution rates. The methods used to determine contribution requirements are
established under state statute.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-36
NOTES TO THE FINANCIAL STATEMENTS
The required contribution rates expressed as a percentage of current‐year covered payroll, as of
December 31, 2017, were as follows:
2017 employer contributions were $1,699,490, $1,850,649, and $328,202 for Plans 1, 2, and 3,
respectively.
Public Safety Employee’s Retirement System (PSERS)
Plan description. The PSERS system was created by the 2004 Legislature and became effective July 1,
2006 under RCW 41.37. PSERS is a multiple‐employer cost‐sharing retirement system comprised of a
single defined benefit plan, PSERS Plan2. PSERS membership includes full‐time employees meeting
specific eligibility criteria that are employed by Department of Corrections, Department of Natural
Resources, Gambling Commissions, Liquor Control Board, Parks and Recreation Commission,
Washington State Patrol, Washington state counties, corrections departments of Washington state cities
except for Seattle, Tacoma, and Spokane, or correctional entities formed by PSERS employers under the
Interlocal Cooperation Act.
Benefits provided. PSERS provides retirement, disability, and death benefits to eligible members.
PSERS members are vested after an employee completes five years of eligible service, PSERS members
may retire at the age of 65 with five years of service, or at the age of 60 with at least ten years of PSERS
service credit, or at age 53 with twenty years of service with a monthly benefit of two percent of the
average final compensation (AFC). A cost of living allowance (COLA) is granted based on the Consumer
Price Index, capped at three percent annually. The AFC is the average of the member’s 60 highest paid
consecutive months.
PSERS members have the option to retire early with reduced benefits. PSERS members meeting specific
eligibility requirements have options available to enhance their retirement benefits. Some of these
options are available to their survivors, generally with reduced benefits.
Required Contribution Rates Employer Employee
Plan 1Plan 2Plan 3Plan 1Plan 2Plan 3
PERS
Members not participating in JBM
State agencies, local governmental units 12.70% 12.70% 12.70% 6.00% 7.38% **
Administrative fee 0.18% 0.18% 0.18%
Total 12.88% 12.88% 12.88% *
Members participating in JBM
Local governmental units 12.70% 12.70% 12.70% 12.26% 18.45% 7.5%***
Administrative fee 0.18% 0.18% 0.18%
Total 12.88% 12.88% 12.88% *
*Plan 3 defined benefit portion only.
** Variable from 5% to 15% based on rate selected by the member.
*** Minimum rate.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-37
NOTES TO THE FINANCIAL STATEMENTS
Contributions. PSERS defined benefit retirement benefits are financed from a combination of investment
earnings and employer and employee contributions. Each biennium, the state Pension Funding Council
adopts Plan 2 employer and employee contribution rates. The employer and employee contribution
rates for Plan 2 are developed by the Office of the State Actuary to fully fund Plan 2. The methods used
to determine the contribution requirements are established under state statute.
The required contribution rates expressed as a percentage of current‐year covered payroll, as of
December 31, 2017, were as follows:
2017 employer contributions to PSERS Plan 2 were $15,355.
Law Enforcement Officers’ and Firefighters’ Retirement System (LEOFF)
Plan description. LEOFF was established by the state legislature in 1970 under the Revised Code of
Washington (RCW) chapter 41.26. LEOFF is a multiple‐employer cost‐sharing retirement system.
Membership in the system includes all full‐time, fully compensated, local law enforcement
commissioned officers, firefighters, and as of July 24, 2005, emergency medical technicians. LEOFF
membership is comprised primarily of non‐state employees, with Department of Fish and Wildlife
enforcement officers who were first included effective July 27, 2003, being an exception.
LEOFF consists of two separate defined benefit plans. LEOFF participants who joined the system by
September 30, 1977, are Plan 1 members. Plan 1 is closed to new members. Those who joined on or
after October 1, 1977, are Plan 2 members.
Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established by Initiative 790 to provide
governance of LEOFF Plan 2. The Board’s duties include adopting contribution rates and recommending
policy changes to the Legislature for the LEOFF Plan 2 retirement plan.
Benefits provided. LEOFF plans provide retirement, disability, and death benefits to eligible members.
LEOFF Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members
are eligible for retirement with five years of service at the age of 50. The benefit per year of service
calculated as a percent of final average salary (FAS) is as follows:
Term of Service
Percent of Final
Average Salary
20 or more years 2.0%
10 but less than 20 years 1.5%
5 but less than 10 years 1.0%
A cost of living allowance (COLA) is granted based on the Consumer Price Index.
Required Contribution Rates Employer Employee
Plan 2Plan 2
PSERS
State agencies, local governmental units 11.95% 6.74%
Administrative fee 0.18%
Total 12.13%
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-38
NOTES TO THE FINANCIAL STATEMENTS
LEOFF Plan 2 members are vested after the completion of five years of eligible service. Plan 2 members
are eligible for retirement at the age of 53 with five years of service, or at age 50 with twenty years of
service. Plan 2 members receive a benefit of two percent of the FAS per year of service. FAS is based on
the highest consecutive 60 months. A COLA is granted based on the Consumer Price Index, capped at
three percent annually.
LEOFF members have the option to retire early with reduced benefits. LEOFF members meeting specific
eligibility requirements have options available to enhance their retirement benefits. Some of these
options are available to their survivors, generally with reduced benefits.
Contributions. LEOFF defined benefit retirement benefits are financed from a combination of investment
earnings, employer and employee contributions, and a special funding situation in which the state pays
through state legislative appropriations.
Employer and employee contribution rates are developed by the Office of the State Actuary to fully fund
the plans. Starting on July 1, 2000, Plan 1 employers and employees are not required to contribute as
long as the plan remains fully funded. Plan 2 employers and employees are required to pay at the level
adopted by the LEOFF Plan 2 Retirement Board. The methods used to determine contribution
requirements are established under state statute.
The required contribution rates expressed as a percentage of current‐year covered payroll, as of
December 31, 2017, were as follows:
2017 employer contributions to LEOFF Plan 2 were $739,835.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
As of June 30, 2017, the City reported its proportionate share of the net pension liability/(asset) as
follows:
The amount of the liability/(asset) reported above for LEOFF Plan 1 and LEOFF Plan 2 reflects a reduction
for the City’s collective liability paid by the State. The City recognized $479,917 as contribution revenue
for the State’s on behalf payment for 2017.
Required Contribution Rates Employer Employee
Plan 1Plan 2Plan 1Plan 2
LEOFF
Local governmental units N/A 5.43% N/A 8.75%
Administrative fee 0.18% 0.18%
Total 0.18% 5.61%
N/A Indicates data not applicable.
Liability Asset
PERS Plan 1 13,406,269$ ‐$
PERS Plan 2/3 12,394,558 ‐
PSERS Plan 2 12,894 ‐
LEOFF Plan 1 ‐ (3,579,592)
LEOFF Plan 2 ‐ (6,498,903)
Total 25,813,721$ (10,078,495)$
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-39
NOTES TO THE FINANCIAL STATEMENTS
The amount recognized by the City as its proportionate share of the net pension liability/(asset), the
portion of the City’s net pension liability/(asset) to be paid by the State, and the total portion of the net
pension liability/(asset) that was associated with the City were as follows:
The collective net pension liability was measured as of June 30, 2017, and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2016, with
the results rolled forward to June 30, 2017 using standard update procedures. Employer contribution
transmittals received and processed by the DRS for the fiscal year ended June 30 are used as the basis
for determining each employer’s proportionate share of the collective pension amounts reported by the
DRS in the Schedules of Employer and Non‐employer Allocations for all plans except LEOFF Plan 1. LEOFF
Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF Plan 1
from 1971 through 2000 and the retirement benefit payments in fiscal year 2017. Historical data was
obtained from a 2011 study by the office of the State Actuary (OSA). In the fiscal year 2017, the State of
Washington contributed 87.12 percent of LEOFF Plan 1 employer contributions and all other employers
contributed the remaining 12.88 percent of employer contributions. LEOFF Plan 1 is fully funded and no
further employer contributions have been required since June 2000. If the plan becomes underfunded,
funding of the remaining liability will require new legislation. The allocation method the plan chose
reflects the projected long‐term contribution effort based on historical data. At June 30, 2017, the City’s
proportionate share of the collective net pension liabilities was as follows:
Liability/(Asset)
LEOFF Plan 1 ‐ employer's proportionate
share (3,579,592)$
LEOFF Plan 1 ‐ State's proportionate share
of the net pension liability/(asset)
associated with the employer (24,212,271)
TOTAL (27,791,863)$
Liability/(Asset)
LEOFF Plan 2 ‐ employer's proportionate
share (6,498,903)$
LEOFF Plan 2 ‐ State's proportionate share
of the net pension liability/(asset)
associated with the employer (4,215,717)
TOTAL (10,714,620)$
Proportionate Share Proportionate Share Change in
6/30/2016 6/30/2017 Proportion
PERS Plan 1 0.276331% 0.282530% 0.006199%
PERS Plan 2/3 0.343835% 0.356727% 0.012892%
PSERS Plan 2 0.065158% 0.065808% 0.000650%
LEOFF Plan 1 0.231059% 0.235931% 0.004872%
LEOFF Plan 2 0.947284% 0.468330%‐0.478954%
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-40
NOTES TO THE FINANCIAL STATEMENTS
For the year ended December 31, 2017 the City recognized pension expense as follows:
At December 31, 2017, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
For PERS Plan 1, $4,983, for PERS Plan 2/3, $2,164,939, for PSERS Plan 2, $13,226, and for LEOFF Plan 2
$385,630, reported as deferred outflows of resources related to contributions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2018.
Pension Expense
PERS Plan 1 836,820$
PERS Plan 2/3 1,824,765$
PSERS Plan 2 17,722$
LEOFF Plan 1 (569,113)$
LEOFF Plan 2 173,908$
Total 2,284,102$
Deferred Outflows of Resources PERS Plan 1PERS Plan 2/3 PSERS Plan 2LEOFF Plan 1LEOFF Plan 2Total
Differences between expected and
actual experience ‐$ 1,255,861$ 7,626$ ‐$ 285,639$ 1,549,126$
Changes of assumptions ‐ 131,654 109 ‐ 7,826 139,588
Net difference between projected
and actual earnings on pension
plan investments ‐ ‐ ‐ ‐ ‐
Changes in proportion and
differences between City
contributions and proportionate
share of contributions ‐ 713,692 ‐ ‐ 17,773 731,464
City contributions subsequent to
the measurement date 4,983 2,164,939 13,226 ‐ 385,630 2,568,777
Total 4,983$ 4,266,145$ 20,961$ ‐$ 696,867$ 4,988,956$
Deferred Inflows of Resources PERS Plan 1PERS Plan 2/3 PSERS Plan 2LEOFF Plan 1LEOFF Plan 2Total
Differences between expected and
actual experience ‐$ 407,636$ 916$ ‐$ 246,449$ 655,001$
Changes of assumptions ‐ ‐ ‐ ‐ ‐ ‐
Net difference between projected
and actual earnings on pension
plan investments 500,284 3,304,090 9,043 332,627 1,459,049 5,605,094
Changes in proportion and
differences between City
contributions and proportionate
share of contributions ‐ 26,327 ‐ ‐ 415,095 441,422
Total 500,284$ 3,738,053$ 9,959$ 332,627$ 2,120,594$ 6,701,517$
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-41
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized as pension expense as follows:
Differences Between Projected and Actual Earnings on Plan Investments
Year PERS Plan 1PERS Plan 2/3 PSERS Plan 2LEOFF Plan 1LEOFF Plan 2
2018 (338,160)$ (1,700,910)$ (3,754)$ (208,752)$ (738,659)$
2019 106,762 209,948 (200) 56,300 83,428
2020 (24,789) (372,548) (1,377) (22,482) (168,515)
2021 (244,097) (1,440,580) (3,712) (157,693) (635,303)
Total (500,284)$ (3,304,090)$ (9,043)$ (332,627)$ (1,459,049)$
The recognition period is a closed, five‐year period for all plans.
Differences Between Expected and Actual Experience
PERS Plan 1PERS Plan 2/3 PSERS Plan 2LEOFF Plan 1LEOFF Plan 2
Recognition
Period (Years)1 1 7.3 12.5 1 10.6
Year (Inflows) Outflows (Inflows) Outflows (Inflows) Outflows (Inflows) Outflows (Inflows) Outflows
2018 ‐$ ‐$ (185,291)$ 509,288$ (80)$ 1,902$ ‐$ ‐$ (25,669)$ 87,620$
2019 ‐ ‐ (185,288) 270,185 (80) 1,901 ‐ ‐ (25,669) 87,620
2020 ‐ ‐ (37,057) 110,785 (80) 1,901 ‐ ‐ (25,669) 87,620
2021 ‐ ‐ ‐ 110,789 (80) 1,901 ‐ ‐ (25,669) 22,779
2022 ‐ ‐ ‐ 110,789 (80) 20 ‐ ‐ (25,669) ‐
Thereafter ‐ ‐ ‐ 144,025 (516) 1 ‐ ‐ (118,104) ‐
Total ‐$ ‐$ (407,636)$ 1,255,861$ (916)$ 7,626$ ‐$ ‐$ (246,449)$ 285,639$
The recognition period for each plan is equal to the average of the expected remaining service lives of all employees provided with pensions through the pension
plan, which was determined at the beginning of the mea surement period.
Changes of Assumptions
PERS Plan 1PERS Plan 2/3 PSERS Plan 2LEOFF Plan 1LEOFF Plan 2
Recognition
Period (Years)1 1 7.3 12.5 1 10.6
Year (Inflows) Outflows (Inflows) Outflows (Inflows) Outflows (Inflows) Outflows (Inflows) Outflows
2018 ‐$ ‐$ ‐$ 60,405$ ‐$ 23$ ‐$ ‐$ ‐$ 2,445$
2019 ‐ ‐ ‐ 56,780 ‐ 22 ‐ ‐ ‐ 2,445
2020 ‐ ‐ ‐ 11,572 ‐ 22 ‐ ‐ ‐ 2,445
2021 ‐ ‐ ‐ 878 ‐ 22 ‐ ‐ ‐ 491
2022 ‐ ‐ ‐ 878 ‐ 9 ‐ ‐ ‐ ‐
Thereafter ‐ ‐ ‐ 1,141 ‐ 11 ‐ ‐ ‐ ‐
Total ‐$ ‐$ ‐$ 131,654$ ‐$ 109$ ‐$ ‐$ ‐$ 7,826$
The recognition period for each plan is equal to the average of the expected remaining service lives of all employees provided with pensions through the pension
plan, which was determined at the beginning of the measurement period.
Changes in Proportion and Differences Between City Contributions and Proportionate Share of Contributions
Recognition
Period (Years)1
1 7.3 12.5 1 10.6
Year (Inflows) Outflows (Inflows) Outflows (Inflows) Outflows (Inflows) Outflows (Inflows) Outflows
2018 ‐$ ‐$ (11,966) 113,284$ ‐$ ‐$ ‐$ ‐$ (50,199)$ 4,443$
2019 ‐ ‐ (11,967) 113,284 ‐ ‐ ‐ ‐ (50,199) 4,443
2020 ‐ ‐ (2,394) 113,284 ‐ ‐ ‐ ‐ (50,199) 4,443
2021 ‐ ‐ ‐ 113,284 ‐ ‐ ‐ ‐ (41,847) 4,444
Thereafter ‐ ‐ ‐ 260,554 ‐ ‐ ‐ ‐ (222,651)
‐$ ‐$ (26,327)$ 713,692$ ‐$ ‐$ ‐$ ‐$ (415,095)$ 17,773$
The recognition period for each plan is equal to the average of the expected remaining service lives of all employees provided with pensions through the pension
plan, which was determined at the beginning of the measurement period.
PERS Plan 1PERS Plan 2/3 PSERS Plan 2LEOFF Plan 1LEOFF Plan 2
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-42
NOTES TO THE FINANCIAL STATEMENTS
Actuarial assumptions. The total pension liability was determined using the following actuarial
assumptions.
Inflation 3.00%
Salary Increases 3.75%
Investment rate of return 7.50%
Mortality rates were based on the RP‐2000 Combined Healthy Table and Combined Disabled Table
published by the Society of Actuaries. The Office of the State Actuary applied offsets to the base table
and recognized future improvements in mortality by projecting the mortality rates using 100 percent
Scale BB. Mortality rates are applied on a generational basis meaning each member is assumed to
receive additional mortality improvements in each future year, throughout his or her lifetime.
The actuarial assumptions used in the June 30, 2016, valuation were based on the results of the 2007‐
2012 Experience Study Report. Additional assumptions for subsequent events and law changes are
current as of the 2016 actuarial valuation report.
The long‐term expected rate of return on pension plan investments was determined using a building‐
block method in which the Washington State Investment Board (WSIB) used a best estimate of expected
future rates of return (expected returns net of pension plan investment expense but including inflation)
to develop each major asset class. Those expected returns make up one component of WSIB’s Capital
Market Assumptions (CMAs). The CMAs contain the following three pieces of information for each class
of assets the WSIB currently invest in:
Expected annual return
Standard deviation of the annual return
Correlations between the annual returns of each asset class with every other asset class
The WSIB uses the CMAs and their target asset allocation to stimulate future investment returns over
various time horizons.
The long‐term expected rate of return of 7.5 percent approximately equals the median of the simulated
investment returns over a fifty‐year time horizon, adjusted to remove or dampen any short‐term
changes to WSIB’s CMAs that aren’t expected over the entire fifty year measurement period.
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s
target asset allocation as of June 30, 2017, are summarized in the following table:
Asset Class
Target
Allocation
Long‐Term
Expected Real
Rate of Return
Fixed Income 20.00% 1.70%
Tangible Assets 5.00% 4.90%
Real Estate 15.00% 5.80%
Global Equity 37.00% 6.30%
Private Equity 23.00% 9.30%
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-43
NOTES TO THE FINANCIAL STATEMENTS
The inflation component used to create the table above is 2.20 percent, and represents WSIB’s most
recent long‐term estimate of broad economic inflation.
Discount rate. The discount rate used to measure the total pension liability was 7.50 percent for all
plans. To determine the discount rate, an asset sufficiency test included an assumed 7.70 percent long‐
term discount rate to determine funding liabilities for calculating future contribution rate requirements.
(All plans use 7.70 percent except LEOFF Plan 2, which has assumed 7.50 percent.) Consistent with the
long‐term expected rate of return, a 7.50 percent future investment rate of return on invested assets
was assumed for the test.
Contributions from plan members and employers are assumed to continue to be made at contractually
required rates (including PERS Plan 2/3, PSERS Plan 2, and SERS Plan2/3 employers, whose rates include
a component for the PERS Plan1 liability). Based on those assumptions, the pension plan’s fiduciary net
position was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long‐term expected rate of return of 7.50 percent on pension plan investments
was applied to determine the total pension liability.
Sensitivity of the Net Pension Liability/(Asset) to Changes in the Discount Rate. The following presents
the City’s proportionate share of the net pension liability/(asset), calculated using the discount rate of
7.50 percent, as well as what the net pension liability/(asset) would be if it were calculated using a
discount rate that is one percentage point lower (6.50 percent) or one percentage point higher (8.50
percent) than the current rate.
B. Firefighters’ Pension
Plan Description ‐ The Firefighters’ Plan (Plan) is a closed, single‐employer defined benefit pension plan
administered by the City of Renton through the firefighters’ pension board. The plan provides pensions
for firefighters that were employed prior to March 1, 1970, when the LEOFF retirement system was
established.
The firefighters’ pension board consists of five members: the Mayor who serves as chair of the board,
the chairperson of the Council Finance Committee, and three members elected by secret ballot of the
retired firefighters for two‐year terms.
1% Decrease
6.50%
Current
Discount Rate
7.50%
1% Increase
8.50%
PERS Plan 1 16,331,398$ 13,406,269$ 10,872,481$
PERS Plan 2/3 33,392,237$ 12,394,558$ (4,809,925)$
PSERS Plan 2 86,576$ 12,894$ (44,878)$
LEOFF Plan 1 (2,655,217)$ (3,579,592)$ (4,373,420)$
LEOFF Plan 2 1,406,353$ (6,498,903)$ (12,939,775)$
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-44
NOTES TO THE FINANCIAL STATEMENTS
Plan Membership – Membership is limited to active members of the Firefighters’ Pension Plan (FPP) as
of March 1, 1970. On that date, the Washington Law Enforcement Officers’ and Firefighters’ System
(LEOFF) was established. The plan is closed to new members. At December 31, 2016, FPF membership
consisted of the following:
Benefits Provided ‐ All benefit terms are in statutes RCW 41.16, 41.18, and 41.26. The Firefighters’
Pension Plan (FPP) provides retirement, disability, and death benefits. Each firefighter in service on
March 1, 1970 receives the greater of the benefit payable under the Washington Law Enforcement
Officers’ and Firefighters’ Retirement (LEOFF) System and the benefits available under the provisions of
prior law. Where benefits under the old law exceed those under the new law for any firefighter, the
excess benefits are paid from the FPF of the city employing the member on March 1, 1970.
All members are retired and drawing benefits. Benefit terms provide for cost‐of‐living adjustments to
each member’s retirement benefit. There are two types of increases: escalation by salary in proportion
to current salary of rank from which the firefighter retired or increase proportionate to the increase in
the Seattle‐area consumer price index, with the change computed annually. Regardless of the change
in the consumer price index, benefits are increased at least two percent each year. The former applies
to firefighters who retired from service after 1969, their survivors, and to firefighters who retired from
duty disability (but not their survivors) after 1961. The latter applies to all other types of monthly
benefits. Benefits and refunds of the Plan are recognized when due and payable in accordance with the
terms of the Plan. For 2017, $239,653 was paid for pension benefit payments.
Contributions. As long as the FPP provides for benefits to covered members, the City will be eligible to
receive a share of the State’s distribution of the fire insurance premium taxes. The amount the City
receives is 25% of all monies received by the State from taxes on fire insurance premiums. Contributions
can also come from taxes paid pursuant to the provisions of RCW 41.16.060. This statute requires that
each municipality levy up to $0.45 (only $0.225 of which can be in excess of the property tax limit
pursuant to RCW 84.52.043) per $1,000 of assessed valuation, based on reports by a qualified actuary,
to maintain the fund. 2017 employer contributions to the Firefighters’ Pension Plan were $150,951.
Investments
Investment Policy – The pension plan’s policy in regard to the allocation of invested assets is established
and may be amended by a majority vote of its members. It is the policy of the FPF board to pursue an
investment strategy that emphasizes prudent and professional standards. The primary investment
requirements, in order of priority, are: safety, compliance, liquidity, and return on investment. The Board
has designated daily operations, internal controls, and investment decisions to the City’s finance
director. No significant investment policy changes were made during the reporting year. Investments are
recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and
Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease
to investment assets and investment income.
Inactive employees or beneficiaries currently receiving benefits 22
Inactive employees or beneficiaries receiving full retirement through LEOFF 4
Total 26
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-45
NOTES TO THE FINANCIAL STATEMENTS
Rate of Return – For the year ended December 31, 2017, the annual money‐weighted rate of return on
pension plan investments, net of pension plan investment expense, was 1.19%. The money‐weighted
rate of return expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
Concentrations – For the year ended December 31, 2017, 6% of the plan’s fiduciary net position was
invested in certificates of deposit, 7% was invested in FNMA Zero Coupon bonds, and 21% was invested
in US Treasury Strips.
Net Pension Liability/(Asset)
The City’s net pension liability was measured as of December 31, 2017, and the total pension liability
used to calculate the net pension liability/(asset) of $(6,835,174) was determined by an actuarial
valuation as of that date.
The plan’s fiduciary net position of $9,619,368 is 335% of the plan’s total pension liability at December
31, 2017.
Actuarial assumptions. The total pension liability was determined by an actuarial valuation as of
December 31, 2017, using the following actuarial assumptions.
Inflation 2.25%
Salary increases 2.50% for 2018 and 3.25% thereafter
Investment rate of return 3.50%
Actuarial cost method Entry age normal
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(a) ‐ (b)
Balances at January 1, 2017 2,868,342$ 9,606,650$ (6,738,308)$
Changes for the Year
Interest on total pension liability 103,111 ‐ 103,111
Effect of economic/demographic gains or losses ‐ ‐ ‐
Effect of assumptions chages or inputs 52,394 ‐ 52,394
Benefit payments (239,653) (239,653) ‐
Contributions from state fire insurance premium tax ‐ 150,951 (150,951)
Net investment income ‐ 113,865 (113,865)
Administrative expenses ‐ (12,445) 12,445
Net Changes (84,148) 12,718 (96,866)
Balances at December 31,2017 2,784,194$ 9,619,368$ (6,835,174)$
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-46
NOTES TO THE FINANCIAL STATEMENTS
Mortality rates were based on the RP‐2000 Mortality Table (combined healthy) with generational
projection using 100% of Projection Scale BB, with ages set back one year for males and forward one
year for females (set forward two years for disabled members).
The long‐term expected rate of return on pension plan investments was determined using a building‐
block method in which best estimate ranges of expected future real rates of return (expected returns,
net of pension plan investment expense and inflation) are developed. We used the weighted expected
returns of the City’s portfolio of cash, US Treasuries (to be held to maturity), and receivables to develop
the long‐term expected rate of return.
The best‐estimate range for the long‐term expected rate of return for each major asset class included in
the pension plan’s target asset allocation as of December 31, 2017, are summarized in the following
table:
Asset Class Index
Long‐Term Expected Real
Rate of Return
Cash Citigroup 90‐Day T‐Bills 0.18%
Short‐Term Bonds Barclays 1‐3 Year Gov/Cred 1.34%
Long‐Term Bonds Barclays Long Gov/Cred 2.78%
Assumed Inflation ‐ Mean 2.25%
Long‐Term Expected Rate of
Return 3.50%
Discount rate. The discount rate used to measure the total pension liability was 3.50%. The projection
of cash flows used to determine the discount rate assumed City contributions were equal to revenue
received from Fire Insurance premiums and the amount received would increase at the inflation rate of
2.25%. Based on this assumption, the pension plan’s fiduciary net position was projected to be available
to make all projected future benefit payment of current plan members. Therefore, the long‐term
expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
Sensitivity of the net pension liability to changes in the discount rate. The following presents the net
pension liability of the City, calculated using the discount rate of 3.50%, as well as what the City’s net
pension liability would be if it were calculated using a discount rate that is one percentage point lower
(2.50%), or one percentage point higher (4.50%), than the current rate.
1% Decrease
2.75%
Current
Discount Rate
3.75%
1% Increase
4.75%
Total Pension Liability 3,011,998$ 2,784,194$ 2,584,423$
Fiduciary Net Position 9,619,368 9,619,368 9,619,368
Net Pension Liability (6,607,370) (6,835,174) (7,034,945)
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-47
NOTES TO THE FINANCIAL STATEMENTS
Pension Expense and Deferred Outflows or Resources and Deferred Inflows of Resources Related to
Pensions
As of December 31, 2017, the deferred inflows and outflows of resources are as follows:
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense as follows:
*Note that additional future deferred inflows and outflows of resources may impact these numbers.
The Firefighters’ Pension Plan is currently overfunded. Changes in the net pension asset and deferred
outflows resulted in a reduction of City pension expense in the amount of $213,945.
NOTE 7. OTHER POST EMPLOYMENT BENEFITS
Plan Description
In accordance with the Revised Code of Washington (RCW) 41.26, the City administers a single‐employer
defined benefit healthcare plan (the Health Plan) for law enforcement officers and fire fighters employed
prior to October 1, 1977. The Health Plan provides medical, prescription drug, dental, Medicare Part B
premiums, long‐term care, and vision expenses for LEOFF Plan 1 retirees. Dependent spouses and
children are not covered.
Prior to 2008, the costs of the Health Plan were provided solely on a pay‐as‐you‐go basis. Beginning in
2008, the City accounts for its other postemployment benefits (OPEB) expenses related to the Health
Plan based on a computed annual required contribution (ARC) that includes the current period’s service
cost and an amount to amortize unfunded actuarial accrued liabilities. The City maintains a standalone
internal service fund, LEOFF 1 Retirees Healthcare Fund. As of December 31, 2017, the City has a balance
of $11,770,996 in the LEOFF 1 Retirees Healthcare Fund. Although this amount is reported as
Deferred Inflows of
Resources
Deferred Outflows
of Resources
Differences between expected and actual experience ‐$ ‐$
Changes of assumptions ‐ ‐
Net difference between projected and actual earnings
on pension plan investments ‐ 391,949
Changes in proportion ‐ ‐
Contributions subsequent to the measurement date ‐ ‐
Total ‐$ 391,949$
Year ended December 31 Amount
2018 127,426$
2019 127,428
2020 88,194
2021 48,901
2022 ‐
Thereafter*‐
391,949$
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-48
NOTES TO THE FINANCIAL STATEMENTS
unrestricted net position in the financial statements, the City intends to use the balance to fund a portion
of the UAAL.
The Health Plan’s actuary is Milliman, Inc. The report may be obtained by contacting the City of Renton,
Finance Division, 1055 South Grady Way, Renton, WA 98057. The Health Plan does not issue a separate
standalone financial report.
Funding Policy
Funding for LEOFF 1 retiree healthcare costs is provided entirely by the City as required by the Revised
Code of Washington (RCW) 41.26. The City does not require retiree contributions. For the fiscal year
ended December 31, 2017, the City contributed $ 908,219 to the Health Plan.
Annual OPEB Cost and Net OPEB Obligation
The basis for the City’s annual other postemployment benefit (OPEB) cost (expense) is the annual
required contribution (ARC). The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover the normal cost each year and to amortize any unfunded actuarial liabilities (or
funding excess) over a period not to exceed thirty years. The following displays the components of the
City’s annual OPEB cost, the amount contributed to the Health Plan, and changes in the City’s net OPEB
obligation to the Health Plan.
Annual Required Contribution and Net OPEB Obligation for years ended December 31, are as follows:
The City’s net OPEB obligation increased by $2,016,503 in year the year ending December 31, 2017. The
entire net OPEB obligation of $10,255,143 is included as a noncurrent liability in the governmental
activities column on government‐wide statement of net position.
Annual Required Contribution (ARC) and Net OPEB Obligation
Fiscal Year Ending
12/31/2015 12/31/2016 12/31/2017
Annual required contribution (ARC)
1.Annual Normal Cost 27,929$ 27,929$ ‐$
2.Amortization of UAAL 2,616,797 2,616,797 3,074,297
3.Interest to EOY 92,565 92,565 115,286
4.ARC at end of year [1+2+3] 2,737,291 2,737,291 3,189,583
5.Interest on Net OPEB Obligation 187,022 239,394 308,949
6.Adjustment to ARC (342,083) (450,964) (573,810)
7.Annual OPEB cost [4+5+6] 2,582,230 2,525,721 2,924,722
8.Employer Contributions 1,085,885 1,126,907 908,219
9.Change in Net OPEB Obligation [7‐8] 1,496,345 1,398,814 2,016,503
10.Net OPEB Obligation at Beginning of Year 5,343,481 6,839,826 8,238,640
11.Net OPEB Obligation at End of Year [9+10] 6,839,826$ 8,238,640$ 10,255,143$
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-49
NOTES TO THE FINANCIAL STATEMENTS
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Health Plan, and the
net OPEB obligation for 2017 and the two preceding years were as follows:
Funded Status and Funding Progress
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of occurrence of events far into the future. Actuarially determined amounts regarding the
funded status of the plan and the annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are made
about the future.
The funded status of the Health Plan as of January 1, 2017 (expressed in thousands):
The schedule of funding progress, presented as required supplementary information following the notes
to the financial statements, presents multi‐year trend information that shows whether the actuarial
value of Health Plan assets is increasing or decreasing over time relative to the actuarial liabilities for
benefits.
Year
Annual
OPEB Cost
Employer
Contribution
Percentage of
OPEB Cost
Contributed
Net OPEB
Obligation
2015 $ 2,582,230 $ 1,085,885 42% $ 6,839,826
2016 2,525,721 1,126,907 45% 8,238,640
2017 2,924,722 908,219 31% 10,255,143
Actuarial accrued liability (AAL) ‐ Unit Credit 44,140$
Actuarial value of plan assets ‐
Unfunded actuarial accrued liability (UAAL) 44,140$
Funded ratio (actuarial value of plan assets ÷ AAL) 0.0%
Covered payroll 80
UAAL as a percentage of covered payroll 55175.00%
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-50
NOTES TO THE FINANCIAL STATEMENTS
Actuarial Methods and Assumptions
An actuarial valuation was completed as of January 1, 2017. Projections of benefits for financial
reporting purposes are based on the substantive plan (the plan as understood by the employer and plan
members) and include the types of benefits provided at the time of each valuation. The actuarial
methods and assumptions used include techniques that are designed to reduce the effects of short‐term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long‐term
perspective of the calculations.
NOTE 8. CONTINGENCIES
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not determinable
at this time, it is the opinion of City’s legal counsel, that the resolution of these matters will not have a
material adverse effect on the financial condition of the City and that the City’s insurance policies and/or
self‐insurance reserves are adequate to pay all known or pending claims.
The City participates in a number of federal and state assisted programs. These grants are subject to
program compliance audits by the Single Audit Act. Such audits could result in reimbursement to grantor
agencies for expenditures disallowed under the terms of the grants. The amount of expenditure that
may be disallowed, if any, cannot be determined at this time and the City’s management believes that
any such disallowances, if any, will be immaterial.
Valuation Date January 1, 2017
Actuarial Cost Method Entry Age Normal
Amortization Method 30‐year, closed as of January 1, 2008
Remaining Amortization Period 21 years
Actuarial Assumptions:
*Investment Rate of Return 3.75%
*Long ‐Term Care Trend Rate 4.50%
Year Pre‐65 Post ‐65
2017‐2018 6.8% 7.5%
2018‐2019 6.3% 6.8%
2019‐2020 5.7% 6.0%
2020‐2021 5.2% 5.2%
2021‐2023 5.1% 5.1%
Grading down to ultimate of 3.9%
Medical Trend*Medical and Dental Trend (before
inclusion of the excise tax)
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-51
NOTES TO THE FINANCIAL STATEMENTS
NOTE 9. RISK MANAGEMENT
The City of Renton is exposed to various risks of loss related to tort; theft of, damage to, and destruction
of assets; errors and omissions; injuries to employees; and natural disasters. The City of Renton protects
itself against unforeseen losses by utilizing a three‐pronged risk management approach. First, the City
self‐funds first level losses through its Insurance Fund. Second, insurance and excess insurance is
purchased to cover medium and large losses. Third, the City reserves the right to utilize the provisions
of Chapter 35A.31.060 RCW to fund catastrophic or uninsured losses. This State statute allows cities to
levy a non‐voted property tax increase to pay for uninsured claims. There were no settlements in excess
of the insurance coverage in any of the three prior fiscal years.
Effective January 1, 2016, the City of Renton was no longer a member of the Washington Cities Insurance
Authority (WCIA) and became self‐insured for its liability and property exposures. Withdrawal from
WCIA provided the City of Renton with an opportunity for increased savings and provides the ability to
control the cost of all types of claims, including liability, property, and automobile.
The risk management internal service fund is funded by charges to the City of Renton’s other funds and
is based primarily upon the contributing funds’ claims experience. Liabilities of the fund are reported
when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated.
Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of
the process to estimate the claims liability is not an exact amount as it depends on many complex factors,
such as, inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated
periodically to consider the effects of inflation, recent claim settlement trends (including frequency and
amount of pay‐outs), and other economic and social factors. The estimate of the claims liability also
includes amounts for incremental claim adjustment expenses related to specific claims and other claim
adjustment expense regardless of whether allocated to specific claims. Estimated recoveries, for
example from salvage or subrogation, are another component of the claims liability estimate.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-52
NOTES TO THE FINANCIAL STATEMENTS
An analysis of the insurance deductibles and self‐insured retention levels, limits of insurance, and
carriers for the major types of coverage are as follows:
Type of Coverage
Risk
Retention
Occurrence Aggregate Amount Carrier
Property –
Expires 07/01/2018
$50,000 $400,000,000 (per
occurrence subject to
annual aggregate &
sub‐limits)
Alliant Property
Insurance
Program (APIP)
Cyber Liability –
Expires 07/01/2018
$50,000 $25,000,000 APIP
Liability –
Expires 01/01/2018
$250,000 $20,000,000
(per occurrence)
Argonaut/Great
American
Auto Physical Damage –
Expires 07/01/2018
$25,000
ACV or Replacement
Cost; per Occurrence
APIP
Equipment Breakdown –
Expires 07/01/2018
$10,000* $100,000,000 APIP
Employee Fidelity/Crime –
Expires 07/01/2018
$10,000 $2,500,000 National Union
Fire
Airport Liability –
Expires 01/01/2018
$0 $100,000,000 National Union
Fire
Underground Storage Tank –
Expires 01/01/2018
$2,500 $1,000,000 Great American
Excess Workers’ Comp –
Expires 01/01/2018
$500,000 Statutory Safety National
Excess Employee Health –
Expires 01/01/2018
$250,000 $19,000,000 SunLife
* There is a 24‐hour utility interruption clause, prior to the deductible becoming applicable.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-53
NOTES TO THE FINANCIAL STATEMENTS
The City's Risk Management Program is administered under the authority of the Human Resources and
Risk Management Administrator, with claims being processed by the carriers shown above.
As of December 31, 2017, the City had accrued the following amounts for outstanding claims:
*The decline in Property & Liability ending IBNR is due to the City no longer being a member of WCIA
and therefore claims are settled at a faster rate. Also, the City settled a number of claims that were
outstanding in 2016.
Coverage
Total Claims Payable
12/31/2017
Property & liability 250,407$
Workers' compensation 657,108
Employee health 1,196,100
TOTAL 2,103,615$
2017
Property &
Liability
Workers'
Compensation
Employee
Health Totals
IBNR claims at beginning of the year 75,395$ 1,269,320$ 1,216,200$ 2,560,915$
Current year and changes in estimates*(1,143,594) (852,521) (9,658,521) (11,654,636)
Claims payments 1,318,606 240,309 9,638,421 11,197,336
IBNR claims at end of the year 250,407$ 657,108$ 1,196,100$ 2,103,615$
2016
Property &
Liability
Workers'
Compensation
Employee
Health Totals
IBNR claims at beginning of the year 1,085,963$ 1,037,911$ 1,740,000$ 3,863,874$
Current year and changes in estimates (380,329) 2,057,978 10,877,626 12,555,275
Claims payments (630,239) (1,826,569) (11,401,426) (13,858,234)
IBNR claims at end of the year*75,395$ 1,269,320$ 1,216,200$ 2,560,915$
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-54
NOTES TO THE FINANCIAL STATEMENTS
NOTE 10. INTERFUND TRANSACTIONS
A.INTERFUND TRANSFERS
The following is the composition of interfund transfers for the year ended December 31, 2017:
During the year, transfers are used to (1) move revenue from the fund with collection authority to
the debt service fund as debt service principal and interest become due, (2) to segregate money for
anticipated capital projects, and 3) move general fund sources into funds identified by the city‐wide
stabilization policy.
All transfers either occur on a regular basis or are consistent with the purpose of the fund making
the transfer. Transfers that occur within the governmental funds are eliminated on the government‐
wide statement of activities.
In addition, the City made the following one‐time transfers during the year ending December 31,
2017:
1.$1.5 million final transfer from the General Fund to the Municipal Facilities Fund to fully fund the
economic development revolving fund reserve to $2.5 million, in compliance with the City’s
stabilization fund policy.
2.$4.1 million final transfer from the General Fund to the Insurance Fund to fully fund the
annexation sales tax credit expiration/transition reserve, in compliance with the City’s
stabilization fund policy.
3.$3.725 million from the General fund to the Capital Improvement Fund to fund the design and
construction of the new fire station 15.
4. $660 thousand transfer from Arterial Streets Fund to the Capital Improvement Fund to fund
street overlay project.
5.$385 thousand transfer from the Waterworks Utility Fund to the Equipment Rental Fund to fund
the capital purchase of a new mini‐vactor and mower.
General
Capital
Improvement 1% for Art
Municipal
Facilities CIP Insurance
Equipment
Rental
Waterworks
Utility Total
Transfer Out:
Governmental Funds
General ‐ 1,700,000 5,545,106 4,100,000 382,334 3,500 11,730,940
Arterial Street 660,000 660,000
Comm. Dev. Impact Mitigation 39,495 39,495
Transportation Impact Mitigation 1,890,000 1,890,000
Municipal Facilities CIP 9,505 9,505
Capital Improvement 5,000 28,823 11,000 44,823
Enterprise Fund
Waterworks Utility 463,573 463,573
Solid Waste 370 370
Internal Service Fund
Equipment Rental 13,989 13,989
Governmental Fixed Assets 242,231 242,231
Total 5,000 4,263,989 38,328 5,584,601 4,100,000 857,277 245,731 15,094,926
Governmental Funds
Transfer In:
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-55
NOTES TO THE FINANCIAL STATEMENTS
B. INTERFUND RECEIVABLES AND PAYABLES
The composition of interfund receivables/ payables as of December 31, 2017 is as follows:
Due from/to:
The outstanding balance between funds results from the time lag between the date the REET
transaction was recorded in the accounting system.
Advances from/to:
The amount payable from the Leased Facilities Fund was also a working capital loan to help ensure
tenant improvement costs at the City’s 200 Mill building could continue. The repayment of the loan
will be funded with the future lease revenue from the tenant.
NOTE 11. LONG TERM DEBT
General Obligation Bonds
General obligation bonds are direct obligations of the City for which its full faith and credit are pledged.
Debt service for voter‐approved bonds, which the City has none, would be funded by special property
tax levies. Debt service for City Council authorized bonds (councilmatic bonds) is funded from regular
property taxes or general revenues, and is generally paid from debt service funds.
General Obligation Bonds outstanding at year‐end are as follows:
2010 Limited Tax General Obligation refunding bonds which refunded a portion of the 2001
limited tax general obligation bonds for the construction of a downtown parking facility.
2011 Limited Tax General Obligation bonds which funded the development and
construction of 2 new libraries.
2013 Limited Tax General Obligation qualified energy conservation bonds (QECB) which
provided funding for streetlight improvements.
2015 (A & B) Limited Tax General Obligation refunding bonds refunded a portion of the
2006 limited tax general obligation bonds for the construction of South Lake Washington
infrastructure improvements.
Receivable Fund Payable Fund Amount
Municipal Facilities General 478,210$
Total 478,210$
Receivable Fund Payable Fund Amount
Due Within
One Year
Internal Service ‐ Insurance Fund Leased Facilities 350,000 175,000
Total 350,000$ 175,000$
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-56
NOTES TO THE FINANCIAL STATEMENTS
Other intergovernmental debt, backed by the full faith and credit of the City:
2009 intergovernmental debt related to the Fire District #40 asset transfer as a result of
the Benson Hill annexation.
2009 intergovernmental debt related to acquisition, construction, and equipping of the
SCORE facility. Pursuant to an interlocal agreement, the City is obligated to pay 36 percent
of the debt service on the SCORE bonds.
Revenue Bonds
Revenue bonds are payable from water, sewer, and storm revenues generated from the charges
for service revenues in those funds. The City is required by bond covenants to secure parity
reserves for these revenue bonds. The current parity reserves are $2,810,145.
Revenue Bonds outstanding at year‐end are as follows:
2012 Water/Sewer Revenue Refunding Bonds (Ordinance #5672) were issued in the
amount of $9,190,000 and dated December 7, 2012. The average interest rate is 2.5%.
These bonds were issued for the purpose of refunding a portion of the 2004 Water/Sewer
Revenue Bonds.
2016 Water/Sewer Revenue Refunding Bonds (2008A) (Ordinance #5812) were issued in
the amount of $9,385,000 and dated October 20, 2016. The average interest rate is 1.73%.
These bonds were issued for the purpose of refunding a portion of the 2008 (A)
Water/Sewer Revenue Bonds (Exempt).
2017 Water/Sewer Revenue Refunding Bonds (2007 & 2007 Ref) (Ordinance #5846) were
issued in the amount of $6,283,168 and dated September 6, 2017. The average interest
rate is 1.85%. These bonds were issued for the purpose of partially refunding the 2007
Water/Sewer Revenue Bonds and 2007 Water/Sewer Revenue Refunding Bonds (02).
State of Washington Public Works Trust Fund Loans (PWTFL)
PWTFL are the direct responsibility of the City. At year‐end the City has three outstanding loans,
with a remaining balance of $2,244,083. All of the remaining loans are for water capital
improvements. Remaining loans are repaid from water system revenues.
PWTFL outstanding at year‐end are as follows:
Maplewood Water Treatment Improvement loan was to fund the costs to eliminate quality
problems in water from the Maplewood wellfield wells.
CT Pipeline for Wells RW‐1, RW‐2 and RW‐3 loan is to construct the CT detention pipeline
for wells RW‐1, RW‐2 and RW‐3 at Liberty Park.
Maplewood Drinking Water Treatment Improvement loan is to construct the drinking
water treatment improvements at Maplewood.
Compensated Absences
Compensated absences are paid by those funds that have employees. These are mostly payable
from the General Fund and Waterworks Utility Fund.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-57
NOTES TO THE FINANCIAL STATEMENTS
Capital Leases
The City leases certain machinery and equipment. These lease payments are payable from the
Equipment Rental Fund.
The following schedules summarize the long‐term debt transactions of the City for the year ended
December 31, 2017. The first table reflects total annual debt service requirements to maturity,
while the second table provides detailed information on all long‐term debt.
Year Principal Interest Principal Interest
2018 5,311,675 2,319,384 2,473,986 556,599
2019 5,476,547 2,154,485 2,590,818 514,812
2020 5,688,322 1,943,374 2,630,818 470,315
2021 5,922,558 1,703,151 2,675,818 423,557
2022 3,366,147 1,445,421 2,690,517 376,009
2023‐2027 14,139,733 5,492,924 13,595,295 995,923
2028‐2032 8,396,055 3,095,296 ‐ ‐
2033‐2037 8,206,200 1,488,076 ‐ ‐
2038‐2042 1,859,400 79,962 ‐ ‐
Totals 58,366,639 19,722,072 26,657,251 3,337,215
Governmental Activities Business‐Type Activities
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-58
NOTES TO THE FINANCIAL STATEMENTS
Debt Limit Capacity
State law provides that debt cannot be incurred in excess of the following percentages of the value of
the taxable property of the City: 1.5 percent without a vote of the people provided the indebtedness
with a vote is 1 percent or less; 2.5 percent with a vote of the people; 5.0 percent with a vote of the
people, provided the indebtedness in excess of 2.5 percent is for utilities; and 7.5 percent with a vote of
the people provided the indebtedness in excess of 5.0 percent is for open space development and parks
facilities. Table 16 in the Statistical Section shows the computation of legal debt margin for general and
special purpose capacities for the City of Renton.
Estimated Arbitrage Rebate
The City engages an outside agency to calculate its arbitrage rebate liability on outstanding tax‐exempt
bonds and certificates of participation under Section 148(f) of the Internal Revenue Code. No additional
rebate was found due for any revenue or general obligation bonds for 2017.
Issue Name Interest Rates Maturity Date
Original Issue
Amount
Beginning
Balance
01/01/2017 Additions Deductions
Ending Balance
12/31/2017
Due Within
One Year
GOVERNMENTAL‐TYPE DEBT:
Limited General Obligation Bonds:
2010 GO Refunding Bonds 3.00%‐4.50% 12/1/2021 6,170,000 5,990,000 ‐ 10,000 5,980,000 1,395,000
2011 GO Library Bonds 2.00%‐5.00% 12/1/2022 16,715,000 9,415,000 ‐ 1,595,000 7,820,000 1,660,000
2011 GO Refunding Bonds 2.00%‐5.00% 12/1/2017 9,425,000 1,665,000 ‐ 1,665,000 ‐ ‐
2013 GO QECB 3.22% 7/1/2028 3,200,000 2,570,000 ‐ 210,000 2,360,000 210,000
2015 (A) GO S LK WA Infr Refunding (BQ) 3.00%‐4.00% 12/1/2028 8,825,000 8,825,000 ‐ ‐ 8,825,000 ‐
2015 (B) GO S LK WA Infr Refunding (Tax) 0.50%‐2.07% 12/1/2020 3,695,000 3,265,000 ‐ 865,000 2,400,000 875,000
Unamortized (discount)/premium/refunding 2,083,753 ‐ 375,091 1,708,663 ‐
48,030,000 33,813,753 ‐ 4,720,091 29,093,663 4,140,000
2009 FD 40 Lo an for acquisition of FS13 3.75% 9/1/2028 6,798,085 4,694,511 ‐ 327,672 4,366,839 340,075
2009 (A) SCORE Tax Exempt 4.00%‐5.00% 1/1/2022 2,953,800 991,800 ‐ ‐ 991,800 ‐
2009 (B) SCORE BABS 3.00%‐6.62% 1/1/2039 28,090,800 26,429,400 ‐ 806,400 25,623,000 831,600
Total Intergovernmental Debt 37,842,685 32,115,711 ‐ 1,134,072 30,981,639 1,171,675
Other Long‐Term Liabilities:
Employee Leave Benefits ‐ Compensated Absences 3,421,353 1,831,467 1,758,815 3,494,004 2,698,144
Other Post Employment Benefits (OPEB) 8,238,640 2,924,722 908,219 10,255,143 ‐
Net Pension Liability 24,710,856 ‐ 4,861,960 19,848,896 ‐
Capital Leases 3.33% 12/1/2019 169,245 104,903 ‐ 33,925 70,978 35,129
Total Other Long‐Term Liabilities 169,245 36,475,752 4,756,189 7,562,919 33,669,022 2,733,274
$ 86,041,930 102,405,216$ 4,756,189$ 13,417,081$ 93,744,324$ 8,044,949$
BUSINESS‐TYPE DEBT:
Rev enue Bonds:
2007 Water/Sewer 4.00%‐5.00% 12/1/2022 1,430,000 1,145,000 ‐ 1,145,000 ‐ ‐
2007 Water/Sewer Refunding (02)4.00%‐5.00% 12/1/2022 8,320,000 5,975,000 ‐ 5,975,000 ‐ ‐
2008 Water/Sewer (a)4.17% 12/1/2027 9,975,000 695,000 ‐ 695,000 ‐ ‐
2012 Water/Sewer Refunding 2.00%‐3.00% 12/1/2027 9,190,000 9,045,000 ‐ 35,000 9,010,000 100,000
2016 Water/Sewer Refunding (2008A)1.73% 12/1/2027 9,385,000 9,230,000 ‐ 110,000 9,120,000 675,000
2017 Water/Sewer Refunding (2007 & 2007
Ref)1.85% 12/1/2022 6,283,168 ‐ 6,283,168 ‐ 6,283,168 1,353,168
Unamortized (discount)/premium/refunding 667,067 ‐ 160,876 506,191 ‐
Total Revenue Bonds 44,583,168 26,757,067 6,283,168 8,120,876 24,919,359 2,128,168
Public Works Trust Fund Loans:
Corrosion Control Treatment Facilities 1.00% 7/1/2017 1,106,000 49,357 ‐ 49,357 ‐ ‐
Maplewood Water Treatment Improvement 0.50% 7/1/2021 567,831 151,505 ‐ 30,301 121,204 30,301
Construct CT Pipeline for Wells 0.50% 7/1/2022 814,527 257,219 ‐ 42,870 214,349 42,870
Maplewood Water Treatment Improvement 0.50% 7/1/2024 5,150,000 2,181,177 ‐ 272,647 1,908,530 272,647
7,638,358 2,639,258 ‐ 395,175 2,244,083 345,818
Other Long‐Term Liabilities:
Employee Leave Benefits ‐ Compensated Absences 677,263 338,710 331,274 684,699 508,327
Net Pension Liability 6,861,257 174,781 1,071,214 5,964,825 ‐
Total Other Long‐Term Liabilities 7,538,520 513,491 1,402,488 6,649,524 508,327
$ 52,221,526 36,934,846$ 6,796,659$ 9,918,538$ 33,812,966$ 2,982,313$
$ 138,263,456 $ 139,340,062 $ 11,552,848 $ 23,335,620 $ 127,557,290 $ 11,027,262
Schedule of Changes of Long‐Term Debt
TOTAL ALL FUNDS
TOTAL BUSINESS‐TYPE DEBT
TOTAL GOVERNMENTAL‐TYPE DEBT
Total Public Works Trust Fund Loans
Total General Obligation Bonds
Other Intergovernmental ‐ Backed by full faith and credit of the City:
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-59
NOTES TO THE FINANCIAL STATEMENTS
Issued/Refunded Debt
On September 6, 2017 the City issued $6,283,168 in 2017 Sewer Revenue Refunding Bonds (2007 &
2007(02)) with an average interest of 1.85%, to partially refund $6,190,000 of outstanding 2007
Water/Sewer Revenue Bonds and 2007 Water/Sewer Revenue Refunding Bonds (02). The net proceeds
were used to purchase U.S. government securities which were deposited with an escrow agent to
provide for all future debt service payments on the refunded bonds. As a result, this portion of the
original bond is considered defeased. The refunding resulted in a reduction in the aggregate debt service
payment of $295,912 and a present value gain of $281,376.
Prior Year Defeasance of Debt
In prior years the City defeased certain bond issues by placing the proceeds of new bonds in an
irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust
account assets and the liability for the defeased bonds are not included in the City’s financial statements.
As of December 31, 2017, the City of Renton has no balance outstanding.
NOTE 12. JOINT VENTURES
A joint venture is a legal entity or other organization that results from a contractual agreement and that
is owned, operated, or governed by two or more participants as a separate and specific activity subject
to joint control in which the participants retain (a) an on‐going financial interest or (b) an on‐going
financial responsibility. The City participates in two joint ventures, both of which are sanctioned by the
provisions and terms of the Interlocal Cooperation Act pursuant to Chapter 39.34 RCW.
VALLEY COMMUNICATIONS CENTER
The Valley Communications Center (Valley Com) was established August 20, 1976, when an Interlocal
Agreement was entered into by four original participating municipal corporations, including the cities of
Renton, Kent, Auburn, and Tukwila. Federal Way was formally admitted in 2000. The initial duration of
the agreement was five years, and thereafter is automatically extended for consecutive five‐year
periods.
The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved
consolidated emergency communications (dispatch) services for police, fire, and medical aid, to the five
participating cities and to several subscribing agencies that include: King County Fire Districts 2, 20, 43,
44, 47; City of Pacific Police Department; City of Black Diamond Police Department; City of Des Moines
Police Department; City of Algona Police Department; Enumclaw Fire; Valley Regional Fire Authority;
North Highline Fire Department; South King Fire & Rescue; Vashon Island Fire & Rescue; and KC Medic
One. Separate agreements between Valley Com and the subscribing agencies have been executed,
which set forth conditions of services and rates charged.
The City made payments totaling $2,475,616 to support Valley Com’s operating costs during the year
ended December 31, 2017.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-60
NOTES TO THE FINANCIAL STATEMENTS
The City reports its share of equity interest in the Governmental Activities column within the
Government‐wide financial statements under non‐current assets – investments in joint ventures. The
following is condensed financial information as of December 31, 2017 related to Valley Communications
Center:
Completed Financial Statements for Valley Com can be obtained from the Valley Communications
Center, 23807 – 98th Avenue South, Kent, WA 98031.
SOUTH CORRECTIONAL ENTITY (SCORE)
The South Correctional Entity (SCORE), a consolidated correctional facility, was established February 25,
2009, when an interlocal agreement was entered into by seven participating municipal governments
(“owner cities”) of Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila. This
agreement was amended and restated October 1, 2009 and named the City of Des Moines as the “host
city”. Pursuant to a separate “Host City Agreement” dated October 1, 2009, the host city will not enjoy
the same equity position as the original owner cities until all debts issued are paid and the host city fulfills
all of its obligations as outlined in the Agreement.
The purpose of the interlocal operation, SCORE, is to serve the Member Cities and Subscribing Agencies
which are in need of correctional facilities. SCORE provides correctional services and functions incidental
thereto, for the purpose of detaining arrestees and sentenced offenders in the furtherance of public
safety and emergencies within the jurisdiction of the Member Cities. Separate agreements between
SCORE and subscribing agencies have been executed, which set forth conditions of services and rates
charged.
Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility was
provided by bonds issued by the South Correctional Entity Facility Public Development Authority (the
“SCORE PDA”), a public development authority chartered by the City of Renton pursuant to RCW
35.21.730 through 35.21.755 and secured by the full faith and credit of the Cities of Auburn, Burien,
Federal Way, Renton, SeaTac, and Tukwila (the owner cities). The SCORE PDA issued $86 million in
special obligation bonds in 2009 to carry out the facility development project.
Member City Percent of Equity
2016 Equity
Balance 2017 Distribution
2017 Equity
Balance
Auburn 21.49% 4,504,828$ 785,310$ 5,290,137$
Federal Way 17.15% 3,484,568 738,204 4,222,772
Kent 29.31% 6,314,604 900,497 7,215,101
Renton 21.17% 4,531,544 681,177 5,212,721
Tukwila 10.88% 2,391,872 286,111 2,677,982
Grand Totals 100.00% 21,227,415$ 3,391,298$ 24,618,713$
Valley Communications Center
2017 Owner Cities Equity Allocation
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-61
NOTES TO THE FINANCIAL STATEMENTS
The following is a summary of the debt service requirements, for each owner city:
The City of Renton made payments totaling $4,804,227 to support SCORE’s operating costs during the
year ended December 31, 2017.
The City reports its share of equity interest in the Governmental Activities column within the
Government‐wide financial statements under non‐current assets – investments in joint ventures. The
following is condensed financial information as of December 31, 2017 related to SCORE:
Completed financial statements for SCORE and SCORE PDA can be obtained at SCORE, 20817 17th
Avenue South, Des Moines, WA 98198.
Auburn Burien Federal Way Renton SeaTac Tukwila
Year 31% 4% 18% 36% 3% 8%
2018 1,687,480 217,739 979,827 1,959,654 163,304 435,479
2019 1,684,513 217,356 978,104 1,956,208 163,017 434,713
2020 1,683,081 217,172 977,273 1,954,546 162,879 434,344
2021 1,682,378 217,081 976,865 1,953,730 162,811 434,162
2022 1,650,016 212,905 958,074 1,916,148 159,679 425,811
2023‐2027 8,215,718 1,060,093 4,770,417 9,540,834 795,070 2,120,185
2028‐2032 8,170,414 1,054,247 4,744,112 9,488,223 790,685 2,108,494
2033‐2037 8,123,685 1,048,217 4,716,978 9,433,956 786,163 2,096,435
2038‐2039 3,235,624 417,500 1,878,749 3,757,499 313,125 835,000
Totals 36,132,909$ 4,662,310$ 20,980,399$ 41,960,798$ 3,496,733$ 9,324,623$
Debt Service Allocation to Owner Cities
Member City Percent of Equity
2016 Equity
Balance 2017 Distribution
2017 Equity
Balance
Auburn 31.00% 3,115,334$ 32,413$ 3,147,747$
Burien 3.00% 324,602 22,263 346,865
Des Moines 2.00% 166,583 (3,248) 163,335
Federal Way 23.00% 2,292,265 61,482 2,353,747
Renton 30.00% 2,941,503 74,665 3,016,168
SeaTac 4.00% 434,029 22,947 456,976
Tukwila 7.00% 703,323 16,099 719,422
Grand Totals 100.00% 9,977,639$ 226,621$ 10,204,260$
South Correctional Entity (SCORE)
2017 Owner Cities Equity Allocation
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-62
NOTES TO THE FINANCIAL STATEMENTS
NOTE 13. AIRPORT LEASES
The majority of the Municipal Airport’s revenue is derived from leases which convey the right to use land
and various airport facilities which are accounted for as operating leases. Minimum future rental on
noncancellable operating leases are as follows:
Of the amounts shown above, one tenant comprises 78.08% of all future minimum lease rentals. The
tenant’s multiple leases expire in 2040.
A summary of assets leased or available for tenant use is as follows:
NOTE 14. CAPITAL LEASE
In December, 2014 the City entered into a lease agreement as lessee for financing the acquisition of
three Xerox copiers valued at $169,245. The equipment has a five year estimated useful life. This year,
$33,849 was included in depreciation expense and accumulated depreciation at December 31, 2017 was
$101,547.
The future minimum lease obligations and the net present value of these lease payments as of December
31, 2017, were as follows:
Year ending December 31:
Governmental
Activities
2018 36,960
2019 36,492
Total 73,452
Less amount representing interest (2,474)
Present value of minimum lease payments 70,978$
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-63
NOTES TO THE FINANCIAL STATEMENTS
NOTE 15. TAX ABATEMENT
Under the provisions of the Preservation Tax Exemption program (RCW 84.14), the City has taken
advantage of the option to provide targeted property tax exemption to existing property owners who
agree to restrict rents and provide income‐eligibility for a portion of the units within their properties.
The purpose of this program incentivizes the creation of affordable and improved housing quality and
prevent displacement for citizens that are in the most need. The City has a comprehensive program that
has specific parameters for project eligibility and duration of exemption.
Provided a property meets the eligibility criteria and the property owner continues to fulfill the
requirements of affordable housing, the property will receive a property tax exemption on the appraised
value of improvements, regardless of assessed valuation. This exemption is not extended to the
appraised value of land or non‐eligible improvements on the same parcel. Eligibility criteria includes, at
a minimum: the property owner must provide affordable housing to low‐income households for 20% of
the multi‐units available for rent and the property must be located in one of the designated “residential
target areas”. All exemptions granted after July 2007 range from 8‐12 years depending on the exemption
option selected. There are no provisions to recapture abated taxes.
As of December 31, 2017 the City has eight projects that are subject to property tax abatement and the
totals are as follows:
NOTE 16. PRIOR PERIOD ADJUSTMENT
Prior period adjustment was necessary to remove several capital assets from the Statement of Net
Position. Capital outlays that did not increase capacity or extend the original useful life of an asset were
improperly capitalized when they should have been expensed in the period they were incurred. This
resulted in a decrease in Governmental Activities net position in the amount of $687,372.
Included in the prior period adjustment noted above was a remodel project that had been accounted for
in the Equipment Rental internal service fund. Removal of this project resulted in a decrease in net
position in the Equipment Rental fund of $113,707.
Tax Abatement Program
Property tax
abated in the fiscal
year ending
12/31/2017
Property Tax Exemption for Affordable Multi-Family Housing 7,960,797$
2017 Comprehensive Annual Financial Report City of Renton, Washington
Basic Financial Statements, 4-64
NOTES TO THE FINANCIAL STATEMENTS
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 72,458,200 $ 74,333,200 $ 81,006,310 $ 6,673,110
Licenses and permits 6,145,012 6,145,012 5,978,811 (166,201)
Intergovernmental revenues 3,625,487 4,501,122 4,359,603 (141,519)
Charges for services 4,737,358 4,807,358 4,970,496 163,138
Fines and forfeits 2,868,450 2,868,450 2,946,849 78,399
Contributions 70,000 175,500 157,119 (18,381)
Interfund revenues 3,990,180 3,990,180 ‐ (3,990,180)
Interest revenue 875,300 875,300 1,095,389 220,089
Miscellaneous revenue 1,731,367 1,781,367 2,280,640 499,273
Total revenues 96,501,354 99,477,489 102,795,217 3,317,728
EXPENDITURES
Current:
General government 13,979,460 14,244,383 11,515,552 2,728,831
Judicial 2,670,656 2,715,056 2,650,678 64,378
Public safety 35,630,985 37,091,805 36,063,481 1,028,324
Utilities 474,118 474,118 240,611 233,507
Transportation 11,079,824 11,297,635 10,018,464 1,279,171
Economic environment 8,908,457 9,359,812 7,006,960 2,352,852
Health and human services 2,148,589 2,265,083 2,175,116 89,967
Culture and recreation 13,049,290 13,479,737 12,106,454 1,373,283
Total current 87,941,379 90,927,629 81,777,316 9,150,313
Capital outlay:
Public safety 25,500 66,387 ‐ 66,387
Transportation 5,200 5,200 10,435 (5,235)
Culture and recreation ‐ 72,497 22,502 49,995
Total capital outlay 30,700 144,084 32,937 111,147
Debt service:
Principal payment 175,000 175,000 ‐ 175,000
Total debt service 175,000 175,000 ‐ 175,000
Total expenditures 88,147,079 91,246,713 81,810,253 9,436,460
Excess (deficiency) of revenues over expenditures 8,354,275 8,230,776 20,984,964 12,754,188
OTHER FINANCING SOURCES (USES)
Transfer in ‐ 5,000 5,000 ‐
Transfers out (5,835,000)(13,757,513)(11,730,940)2,026,573
Sale of capital assets ‐ ‐ 4,925 4,925
Insurance Recoveries ‐ ‐ 17,217 17,217
Total other financing sources (uses)(5,835,000)(13,752,513)(11,703,798)2,048,715
Net change in fund balances 2,519,275 (5,521,737)9,281,166 14,802,903
FUND BALANCE ‐ JANUARY 1 29,991,347 29,991,347 29,991,347 ‐
FUND BALANCE ‐ DECEMBER 31 $ 32,510,622 $ 24,469,610 $ 39,272,513 $ 14,802,903
Budgeted Amounts
City of Renton
General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2017
2017 Comprehensive Financial Report City of Renton, Washington
Required Supplementary Information, 5-1
City of Renton
Schedule of the City's Proportionate Share of the Net Pension Liability/(Asset)
Measurement Date of June 30 *
Last 10 Fiscal Years
PERS Plan 1 2017 2016 2015
City's proportion of the net pension liability/(asset)0.282530% 0.276331% 0.275830%
City's proportionate share of the net pension
liability/(asset)**13,406,269$ 14,840,276$ 14,428,474$
City's covered payroll 35,481,222$ 32,889,898$ 31,129,385$
City's proportionate share of the net pension
liability/(asset) as a percentage of its covered payroll 37.78%45.12%46.35%
Plan fiduciary net position as a percentage of the
total pension liability 61.24%57.03%59.10%
* This schedule will be built prospectively until it contains ten years of data.
** 2016 amount includes $280,481 in net pension liability transferred to the RFA on 6/30/16 to avoid skewing
percentage of covered payroll ratio.
2017 Comprehensive Financial Report City of Renton, Washington
Required Supplementary Information, 5-2
City of Renton
Schedule of the City's Proportionate Share of the Net Pension Liability/(Asset)
Measurement Date of June 30 *
Last 10 Fiscal Years
PERS Plan 2/3 2017 2016 2015
City's proportion of the net pension liability/(asset)0.356727% 0.343835% 0.345072%
City's proportionate share of the net pension
liability/(asset)**12,394,558$ 17,311,821$ 12,329,619$
City's covered payroll 35,045,479$ 32,370,185$ 30,618,109$
City's proportionate share of the net pension
liability/(asset) as a percentage of its covered payroll 35.37%53.48%40.27%
Plan fiduciary net position as a percentage of the
total pension liability 90.97%85.82%89.20%
* This schedule will be built prospectively until it contains ten years of data.
** 2016 amount includes $327,194 in net pension liability transferred to the RFA on 6/30/16 to avoid skewing
percentage of covered payroll ratio.
2017 Comprehensive Financial Report City of Renton, Washington
Required Supplementary Information, 5-3
City of Renton
Schedule of the City's Proportionate Share of the Net Pension Liability/(Asset)
Measurement Date of June 30 *
Last 10 Fiscal Years
PSERS Plan 2 2017 2016 2015
City's proportion of the net pension liability/(asset)0.065808% 0.065158% 0.042991%
City's proportionate share of the net pension
liability/(asset)12,894$ 27,691$ 7,846$
City's covered payroll 233,001$ 211,427$ 124,200$
City's proportionate share of the net pension
liability/(asset) as a percentage of its covered payroll 5.53%13.10%6.32%
Plan fiduciary net position as a percentage of the
total pension liability 96.26%90.41%95.08%
* This schedule will be built prospectively until it contains ten years of data.
2017 Comprehensive Financial Report City of Renton, Washington
Required Supplementary Information, 5-4
City of Renton
Schedule of the City's Proportionate Share of the Net Pension Liability/(Asset)
Measurement Date of June 30 *
Last 10 Fiscal Years
LEOFF Plan 1 2017 2016 2015
City's proportion of the net pension liability/(asset)0.235931% 0.231059% 0.229885%
City's proportionate share of the net pension
liability/(asset)**(3,579,592)$ (2,380,569)$ (2,770,622)$
State's proportionate share of the net pension
liability/(asset) associated with the City (24,212,271) (16,524,364) (18,740,418)
Total (27,791,863)$ (18,904,933)$ (21,511,040)$
City's covered payroll ‐$ ‐$ ‐$
City's proportionate share of the net pension
liability/(asset) as a percentage of its covered payroll N/A N/A N/A
Plan fiduciary net position as a percentage of the
total pension liability 135.96% 123.74% 127.36%
* This schedule will be built prospectively until it contains ten years of data.
** 2016 amount includes $1,325,025 in net pension asset transferred to the RFA on 6/30/16 to avoid skewing
percentage of covered payroll ratio.
2017 Comprehensive Financial Report City of Renton, Washington
Required Supplementary Information, 5-5
City of Renton
Schedule of the City's Proportionate Share of the Net Pension Liability/(Asset)
Measurement Date of June 30 *
Last 10 Fiscal Years
LEOFF Plan 2 2017 2016 2015
City's proportion of the net pension liability/(asset)0.468330% 0.947284% 0.954715%
City's proportionate share of the net pension
liability/(asset)**(6,498,903)$ (5,509,688)$ (9,812,561)$
State's proportionate share of the net pension
liability/(asset) associated with the City (4,215,723) (1,592,656) (925,241)
Total (10,714,626)$ (7,102,344)$ (10,737,802)$
City's covered payroll 14,650,540$ 28,694,750$ 27,709,532$
City's proportionate share of the net pension
liability/(asset) as a percentage of its covered payroll ‐44.36%‐19.20%‐35.41%
Plan fiduciary net position as a percentage of the
total pension liability 113.36% 106.04% 111.67%
* This schedule will be built prospectively until it contains ten years of data.
** 2016 amount includes $3,066,692 in net pension asset transferred to the RFA on 6/30/16 to avoid skewing
percentage of covered payroll ratio.
2017 Comprehensive Financial Report City of Renton, Washington
Required Supplementary Information, 5-6
Schedule of Employer Contributions
WA Department of Retirement Systems
As of December 31
Last 10 Fiscal Years
PERS Plan 1 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Contractually Required Contribution 1,717,805$ 1,619,494$ 2,190,238$ 1,253,454$ N/A N/A N/A N/A N/A N/A
Contributions in relation to the
contractually required contribution 1,717,805 1,619,494 2,190,238 1,253,454 N/A N/A N/A N/A N/A N/A
Contribution deficiency (excess)‐$ ‐$ ‐$ ‐$ N/A N/A N/A N/A N/A N/A
Covered payroll 35,120,529$ 33,737,587$ 48,318,549$ 30,448,215$ N/A N/A N/A N/A N/A N/A
Contributions as a percentage of covered
payroll 4.89% 4.80% 4.53% 4.12% N/A N/A N/A N/A N/A N/A
PERS Plan 2/3 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Contractually Required Contribution 2,375,793$ 2,067,865$ 2,743,908$ 1,490,022$ N/A N/A N/A N/A N/A N/A
Contributions in relation to the
contractually required contribution 2,375,793 2,067,865 2,743,908 1,490,022 N/A N/A N/A N/A N/A N/A
Contribution deficiency (excess)‐$ ‐$ ‐$ ‐$ N/A N/A N/A N/A N/A N/A
Covered payroll 34,783,770$ 33,263,999$ 47,552,982$ 29,821,815$ N/A N/A N/A N/A N/A N/A
Contributions as a percentage of covered
payroll 6.83% 6.22% 5.77% 5.00% N/A N/A N/A N/A N/A N/A
PSERS Plan 2 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Contractually Required Contribution 14,929$ 14,489$ 18,418$ 7,845$ N/A N/A N/A N/A N/A N/A
Contributions in relation to the
contractually required contribution 14,929 14,489 18,418 7,845 N/A N/A N/A N/A N/A N/A
Contribution deficiency (excess)‐$ ‐$ ‐$ ‐$ N/A N/A N/A N/A N/A N/A
Covered payroll 224,038$ 219,869$ 282,407$ 122,185$ N/A N/A N/A N/A N/A N/A
Contributions as a percentage of covered
payroll 6.66%6.59% 6.52% 6.42% N/A N/A N/A N/A N/A N/A
LEOFF Plan 2 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
0
Contractually Required Contribution 715,573$ 1,049,917$ 2,160,553$ 1,368,037$ N/A N/A N/A N/A N/A N/A
Contributions in relation to the
contractually required contribution 715,573 1,049,917 2,160,553 1,368,037 N/A N/A N/A N/A N/A N/A
Contribution deficiency (excess)‐$ ‐$ ‐$ ‐$ N/A N/A N/A N/A N/A N/A
Covered payroll 13,896,060$ 20,790,373$ 42,778,479$ 27,089,783$ N/A N/A N/A N/A N/A N/A
Contributions as a percentage of covered
payroll 5.15% 5.05% 5.05% 5.05% N/A N/A N/A N/A N/A N/A
0
Note: Prior years information is unavailable
2017 Comprehensive Financial Report City of Renton, Washington
Required Supplementary Information, 5-7
City of Renton
Schedule of Changes in Net Pension Liability and Related Ratios
Firefighters' Pension Fund
Last 10 Fiscal Years
$ Thousands
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Total Pension Liability
Service Cost ‐$ ‐$ ‐$ ‐$ N/A N/A N/A N/A N/A N/A
Interest on Total Pension Liability 103 106 109 112 N/A N/A N/A N/A N/A N/A
Effect of Plan Changes ‐ ‐ ‐ ‐ N/A N/A N/A N/A N/A N/A
Effect of Economic/Demographic Gains or (Losses)‐ (29) ‐ ‐ N/A N/A N/A N/A N/A N/A
Effect of Assumption Changes or Inputs 52 (125) ‐ ‐ N/A N/A N/A N/A N/A N/A
Benefit payments (240) (208) (205) (204) N/A N/A N/A N/A N/A N/A
Net Change in Total Pension Liability (84) (256) (96) (92) N/A N/A N/A N/A N/A N/A
Total Pension Liability ‐ Beginning 2,868 3,125 3,221 3,313 N/A N/A N/A N/A N/A N/A
Total Pension Liability ‐ Ending (a)2,784$ 2,868$ 3,125$ 3,221$ N/A N/A N/A N/A N/A N/A
Plan Fiduciary Net Position
Employer Contributions ‐$ ‐$ ‐$ ‐$ N/A N/A N/A N/A N/A N/A
Contributions from State Fire Insurance Premium Tax 151 148 146 143 N/A N/A N/A N/A N/A N/A
Investment Income Net of Investment Expenses 114 136 134 394 N/A N/A N/A N/A N/A N/A
Benefit payments (240) (208) (205) (204) N/A N/A N/A N/A N/A N/A
Medical Payments from Fund ‐ ‐ ‐ ‐ N/A N/A N/A N/A N/A N/A
Administrative Expense (12) ‐ (12) (1) N/A N/A N/A N/A N/A N/A
Net Change in plan fiduciary net position 13 76 63 332 N/A N/A N/A N/A N/A N/A
Plan fiduciary net position ‐ beginning 9,607 9,531 9,468 9,136 N/A N/A N/A N/A N/A N/A
Plan fiduciary net position ‐ ending (b)9,619 9,607 9,531 9,468 N/A N/A N/A N/A N/A N/A
Net pension liability ‐ ending =(a)‐(b)(6,835)$ (6,739)$ (6,406)$ (6,247)$ N/A N/A N/A N/A N/A N/A
Fiduciary net position as a percentage of the total pension
liability 345.51%334.97% 304.99% 293.95% N/A N/A N/A N/A N/A N/A
Covered Payroll ‐$ ‐$ ‐$ ‐$ N/A N/A N/A N/A N/A N/A
Net pension liability as a percentage of covered payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Notes to schedule:
Prior years information is unavailable.
2017 Comprehensive Financial Report City of Renton, Washington
Required Supplementary Information, 5-8
Schedule of Employer Contributions
Firefighters' Pension Fund
December 31
Last 10 Fiscal Years
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Actuarially determined contribution ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$
Contributions in relation to the actuarially
determined contribution 150,951 148,034 146,358 142,706 124,391 118,775 102,354 107,068 70,327 66,055
Contribution deficiency (excess)(150,951)$ (148,034)$ (146,358)$ (142,706)$ (124,391)$ (118,775)$ (102,354)$ (107,068)$ (70,327)$ (66,055)$
Covered ‐ employee payroll ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$
Contribution as a percentage of covered ‐
employee payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Note:
Contributions are a portion of State Fire Insurance Premium Taxes.
2017 Comprehensive Financial Report City of Renton, Washington
Required Supplementary Information, 5-9
City of Renton
Schedule of Investment Returns
Firefighters' Pension Fund
Last 10 Fiscal Years
Fiscal Year
Ending
December 31
Net
Money‐Weighted Rate of
Return
2008 N/A
2009 N/A
2010 N/A
2011 N/A
2012 N/A
2013 N/A
2014 4.31%
2015 1.42%
2016 1.43%
2017 1.19%
2017 Comprehensive Financial Report City of Renton, Washington
Required Supplementary Information, 5-10
City of Renton
Schedule of Funding Progress
LEOFF 1 Retiree Medical Benefits
(Dollar amounts in thousands)
$ Thousands
YEAR ENDING
12/31
ACTUARIAL
VALUE OF
ASSETS
ACTUARIAL
ACCRUED
LIABILITES
UNFUNDED
ACTUARIAL
ACCRUED
LIABILITIES
FUNDED
RATIO
COVERED
PAYROLL
UAAL AS A
PERCENTAGE
OF COVERED
PAYROLL
2007 $‐ $32,328 $ 32,328 0% $ 471 6864%
2010 ‐ 27,835 27,835 0%434 6414%
2012 ‐ 41,633 41,633 0%300 13878%
2014 42,306 42,306 0%N/A N/A
2016 44,140 44,140 0%N/A N/A
2017 Comprehensive Financial Report City of Renton, Washington
Required Supplementary Information, 5-11
This page intentionally left blank.
2017 Comprehensive Financial Report City of Renton, Washington
Required Supplementary Information, 5-12
Non‐Major Governmental Funds
Capital Project Funds
COMMUNITY DEVELOPMENT IMPACT MITIGATION FUND
Accounts for monies collected from developers to offset impacts created by their developments
to City facilities.
TRANSPORTATION IMPACT MITIGATION FUND
Accounts for monies collected from developers to offset impacts created by their developments
to City facilities.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-1
Debt Service Funds
GENERAL GOVERNMENTAL MISCELLANEOUS DEBT SERVICE FUND
This debt service fund accounts for the following outstanding debt issues:
2006 limited tax general obligation bonds which provided funding for the construction of
South Lake Washington infrastructure improvements.
2009 intergovernmental debt related to the Fire District #40 asset transfer as a result of
the Benson Hill annexation.
2009 intergovernmental debt related to acquisition, construction, and equipping of the
SCORE facility.
2010 limited tax general obligation refunding bonds which refunded a portion of the 2001
limited tax general obligation bonds for the construction of a downtown parking facility.
2011 limited tax general obligation bonds which funded the development and
construction of 2 new libraries.
2011 limited tax general obligation refunding bonds which refunded a portion of the 2001
limited tax general obligation bonds which refunded a portion of the 1997 limited tax
general obligation bonds for the purchase of Renton City Hall.
2013 limited tax general obligation qualified energy conservation bonds (QECB) which
provided funding for streetlight improvements.
2015 (A&B) limited tax general obligation refunding bonds which refunded a portion of
the 2006 limited tax general obligation bonds for the construction of South Lake
Washington infrastructure improvements.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-2
Special Revenue Funds
ARTERIAL STREET FUND
The Arterial Street Fund was established pursuant to state law allocating the one‐half cent State
Gasoline Tax revenue to cities and towns for construction, improvements, and major repair of
streets.
HOTEL/MOTEL TAX FUND
Accounts for monies collected through an increase of 1% in hotel/motel taxes for the purpose of
increasing tourism in the City of Renton.
1% FOR ART FUND
The City of Renton established this fund to account for one percent of construction project actual
costs to be used for the selection, acquisition and/or installation of works of art to be placed in,
on, or about City public facilities.
CABLE COMMUNICATIONS DEVELOPMENT FUND
The Cable Communications Development Fund accounts for funding for promotion and
development of cable communications as established by City ordinance.
SPRINGBROOK WETLANDS BANK FUND
The City of Renton established this fund in 2007 for the purpose of providing accounting for the
Springbrook Creek Wetland and Habitat Mitigation Bank project. The fund will receive revenue
by selling Wetlands Credits to third parties and to the City’s internal departments.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-3
Non‐Major Proprietary Funds
Enterprise Funds
AIRPORT FUND
The Airport Fund accounts for revenues and expenses for administration, debt services,
operation, capital improvements, and maintenance of the Renton Municipal Airport and Will
Rodger‐Wily Post Memorial Seaplane Base. Sources of support to the fund are leases, fuel
charges, investment interest, and grant funding as available.
GOLF COURSE FUND
The Golf Course Fund was created after the City acquired the Maplewood Golf Course. The fund
accounts for the operation, maintenance, debt service, and capital improvements of the facility.
Internal Service Funds
EQUIPMENT RENTAL FUND
The Equipment Rental Fund accounts for the costs of maintaining and replacing all City vehicles
and auxiliary equipment. In addition, this fund accounts for the City’s information technology,
facilities and communications costs. All costs, including depreciation, are factors in calculating
the rates that are charged to each user department.
INSURANCE FUND
The Insurance Fund provides accounting for self‐insurance services to all City departments,
including provisions for losses on property, liability, worker’s compensation, unemployment
compensation, and the health care program. Expenses are paid from the Insurance Fund and
rates are charged to departments based on use and/or coverage requirements.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-4
Capital Projects Funds Debt Service Funds Special Revenue Funds
Total Nonmajor
Governmental Funds
ASSETS
Cash & cash equivalents $ 2,079,706 $ 1,802,860 $ 1,164,513 $ 5,047,079
Investments at fair value 625,442 542,185 350,211 1,517,838
Receivables, net of allowances:
Customer accounts ‐ ‐ 5,000 5,000
Accrued interest & penalties 13,766 15,888 6,149 35,803
Notes and assessments receivable 4,684 ‐ ‐ 4,684
Due from other governments ‐ 836,002 164,017 1,000,019
TOTAL ASSETS $ 2,723,598 $ 3,196,935 $ 1,689,890 $ 7,610,423
LIABILITIES
Accounts payable $‐ $1,000 $39,737 $40,737
Unearned revenues ‐ 836,002 ‐ 836,002
TOTAL LIABILITIES ‐ 837,002 39,737 876,739
DEFERRED INFLOWS OF RESOURCES
Deferred amounts on special assessments 4,824 ‐ ‐ 4,824
Unavailable revenues ‐ ‐ 5,000 5,000
TOTAL DEFERRED INFLOW OF RESOURCES 4,824 ‐ 5,000 9,824
FUND BALANCES
Restricted 2,718,774 ‐ 1,542,103 4,260,877
Committed ‐ ‐ 103,050 103,050
Assigned ‐ 2,359,933 ‐ 2,359,933
TOTAL FUND BALANCES 2,718,774 2,359,933 1,645,153 6,723,860
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
FUND BALANCES $ 2,723,598 $ 3,196,935 $ 1,689,890 $ 7,610,423
City of Renton
Combining Governmental Balance Sheet
Nonmajor Governmental Funds
Summary by Fund Type
December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-5
Community
Development Impact
Mitigation
Transportation Impact
Mitigation
Total Nonmajor
Capital Projects Funds
ASSETS
Cash & cash equivalents $ 1,461,453 $ 618,253 $ 2,079,706
Investments at fair value 439,511 185,931 625,442
Receivables, net of allowances:
Accrued interest & penalties 7,306 6,460 13,766
Notes and assessments receivable ‐ 4,684 4,684
TOTAL ASSETS $ 1,908,270 $ 815,328 $ 2,723,598
LIABILITIES $‐ $‐ $‐
TOTAL LIABILITIES ‐ ‐ ‐
DEFERRED INFLOWS OF RESOURCES
Deferred amount of special assessments ‐ 4,824 4,824
TOTAL DEFERRED INFLOWS OF RESOURCES ‐ 4,824 4,824
FUND BALANCES
Restricted 1,908,270 810,504 2,718,774
TOTAL FUND BALANCES 1,908,270 810,504 2,718,774
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
FUND BALANCES $ 1,908,270 $ 815,328 $ 2,723,598
City of Renton
Combining Balance Sheet
Nonmajor Capital Projects Funds
December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-6
General Debt
Total Nonmajor Debt
Service Funds
ASSETS
Cash & cash equivalents $ 1,802,860 $ 1,802,860
Investments at fair value 542,185 542,185
Receivables, net of allowances:
Accrued interest & penalties 15,888 15,888
Due from other governments 836,002 836,002
TOTAL ASSETS $ 3,196,935 $ 3,196,935
LIABILITIES
Accounts payable $1,000 $1,000
Unearned revenues 836,002 836,002
TOTAL LIABILITIES 837,002 837,002
DEFERRED INFLOWS OF RESOURCES
TOTAL DEFERRED INFLOWS OF RESOURCES ‐ ‐
FUND BALANCES
Assigned 2,359,933 2,359,933
TOTAL FUND BALANCES 2,359,933 2,359,933
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
FUND BALANCES $ 3,196,935 $ 3,196,935
City of Renton
Combining Balance Sheet
Nonmajor Debt Service Funds
December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-7
Arterial Street Hotel/Motel Tax 1% For ArtCable Communications DevelopmentSpringbrook Wetlands BankTotal Nonmajor Special Revenue FundsASSETSCash & cash equivalents $82,236 $ 383,930 $78,890 $ 361,832 $ 257,625 $ 1,164,513 Investments at fair value24,731 115,462 23,725 108,816 77,477 350,211 Receivables, net of allowances:Customer accounts‐ 5,000 ‐ ‐ ‐ 5,000 Accrued interest & penalties1,410 1,496 435 1,573 1,235 6,149 Due from other governments109,656 54,361 ‐ ‐ ‐ 164,017 TOTAL ASSETS $ 218,033 $ 560,249 $ 103,050 $ 472,221 $ 336,337 $ 1,689,890 LIABILITIESAccounts payable $‐ $39,737 $‐ $‐ $‐ $39,737 TOTAL LIABILITIES‐ 39,737 ‐ ‐ ‐ 39,737 DEFERRED INFLOWS OF RESOURCESUnavailable revenues‐ 5,000 ‐ ‐ ‐ 5,000 TOTAL DEFERRED INFLOWS OF RESOURCES‐ 5,000 ‐ ‐ ‐ 5,000 FUND BALANCESRestricted218,033 515,512 ‐ 472,221 336,337 1,542,103 Committed‐ ‐ 103,050 ‐ ‐ 103,050 TOTAL FUND BALANCES218,033 515,512 103,050 472,221 336,337 1,645,153 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 218,033 $ 560,249 $ 103,050 $ 472,221 $ 336,337 $ 1,689,890 City of RentonCombining Balance SheetNonmajor Special Revenue Funds December 31, 20172017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-8
Capital Projects Funds Debt Service Funds Special Revenue Funds
Total Nonmajor
Governmental Funds
REVENUES
Taxes $‐ $ 5,391,936 $ 433,721 $ 5,825,657
Licenses and permits ‐ ‐ 88,519 88,519
Intergovernmental revenues ‐ 575,908 707,229 1,283,137
Charges for services 1,550,015 ‐ ‐ 1,550,015
Contributions ‐ ‐ 25,000 25,000
Investment earnings 24,488 27,647 11,495 63,630
TOTAL REVENUES 1,574,503 5,995,491 1,265,964 8,835,958
EXPENDITURES
Current:
Economic environment ‐ ‐ 324,596 324,596
Culture and recreation ‐ ‐ 23,521 23,521
Capital outlay:
Culture and recreation ‐ ‐ 95,055 95,055
Debt service:
Principal payment ‐ 4,672,672 ‐ 4,672,672
Interest and fiscal charges ‐ 1,390,904 ‐ 1,390,904
TOTAL EXPENDITURES ‐ 6,063,576 443,172 6,506,748
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 1,574,503 (68,085)822,792 2,329,210
OTHER FINANCING SOURCES (USES)
Transfer in ‐ ‐ 38,328 38,328
Transfer out (1,929,495)‐ (660,000)(2,589,495)
TOTAL OTHER FINANCING SOURCES (USES)(1,929,495)‐ (621,672)(2,551,167)
NET CHANGE IN FUND BALANCE (354,992)(68,085)201,120 (221,957)
FUND BALANCE ‐ JANUARY 1 3,073,766 2,428,018 1,444,033 6,945,817
FUND BALANCE ‐ DECEMBER 31 $ 2,718,774 $ 2,359,933 $ 1,645,153 $ 6,723,860
City of Renton
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Summary by Fund Type
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-9
Community
Development Impact
Mitigation
Transportation Impact
Mitigation
Total Nonmajor
Capital Projects Funds
REVENUES
Charges for services $ 361,461 $ 1,188,554 $ 1,550,015
Investment earnings 10,999 13,489 24,488
TOTAL REVENUES 372,460 1,202,043 1,574,503
EXPENDITURES ‐ ‐ ‐
TOTAL EXPENDITURES ‐ ‐ ‐
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 372,460 1,202,043 1,574,503
OTHER FINANCING SOURCES (USES)
Transfer out (39,495)(1,890,000)(1,929,495)
TOTAL OTHER FINANCING SOURCES (USES)(39,495)(1,890,000)(1,929,495)
NET CHANGE IN FUND BALANCE 332,965 (687,957)(354,992)
FUND BALANCE ‐ JANUARY 1 1,575,305 1,498,461 3,073,766
FUND BALANCE ‐ DECEMBER 31 $ 1,908,270 $ 810,504 $ 2,718,774
City of Renton
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Capital Projects Funds
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-10
General Debt
Total Nonmajor Debt
Service Funds
REVENUES
Taxes $ 5,391,936 $ 5,391,936
Intergovernmental revenues 575,908 575,908
Investment earnings 27,647 27,647
TOTAL REVENUES 5,995,491 5,995,491
EXPENDITURES
Debt service:
Principal payment 4,672,672 4,672,672
Interest and fiscal charges 1,390,904 1,390,904
TOTAL EXPENDITURES 6,063,576 6,063,576
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (68,085)(68,085)
OTHER FINANCING SOURCES (USES)‐ ‐
TOTAL OTHER FINANCING SOURCES (USES)‐ ‐
NET CHANGE IN FUND BALANCE (68,085)(68,085)
FUND BALANCE ‐ JANUARY 1 2,428,018 2,428,018
FUND BALANCE ‐ DECEMBER 31 $ 2,359,933 $ 2,359,933
City of Renton
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Debt Service Funds
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-11
Arterial Street Hotel/Motel Tax 1% For ArtCable Communications DevelopmentSpringbrook Wetlands BankTotal Nonmajor Special Revenue FundsREVENUESTaxes $‐ $ 393,721 $‐ $40,000 $‐ $ 433,721 Licenses and permits‐ ‐ ‐ 88,519 ‐ 88,519 Intergovernmental revenues707,229 ‐ ‐ ‐ ‐ 707,229 Contributions‐ 25,000 ‐ ‐ ‐ 25,000 Investment earnings2,831 2,759 805 2,948 2,152 11,495 TOTAL REVENUES710,060 421,480 805 131,467 2,152 1,265,964 EXPENDITURESCurrent:Economic environment‐ 324,596 ‐ ‐ ‐ 324,596 Culture and recreation‐ ‐ ‐ 23,521 ‐ 23,521 Capital outlay:Culture and recreation‐ ‐ 64,633 30,422 ‐ 95,055 TOTAL EXPENDITURES‐ 324,596 64,633 53,943 ‐ 443,172 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES710,060 96,884 (63,828)77,524 2,152 822,792 OTHER FINANCING SOURCES (USES)Transfer in‐ ‐ 38,328 ‐ ‐ 38,328 Transfer out(660,000)‐ ‐ ‐ ‐ (660,000)TOTAL OTHER FINANCING SOURCES (USES)(660,000)‐ 38,328 ‐ ‐ (621,672)NET CHANGE IN FUND BALANCE50,060 96,884 (25,500)77,524 2,152 201,120 FUND BALANCE ‐ JANUARY 1167,973 418,628 128,550 394,697 334,185 1,444,033 FUND BALANCE ‐ DECEMBER 31 $ 218,033 $ 515,512 $ 103,050 $ 472,221 $ 336,337 $ 1,645,153 City of RentonCombining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Special Revenue FundsFor the Year Ended December 31, 20172017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-12
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 5,420,000 $ 5,420,000 $ 7,270,101 $ 1,850,101
Intergovernmental revenues 207,000 3,097,866 2,221,823 (876,043)
Charges for services ‐ ‐ 23,220 23,220
Contributions ‐ 120,510 232,880 112,370
Interest revenue ‐ 45,832 138,189 92,357
Total revenues 5,627,000 8,684,208 9,886,213 1,202,005
EXPENDITURES
Current:
General government ‐ 7,245 977,175 (969,930)
Economic environment ‐ 489,400 399,316 90,084
Culture and recreation 1,033,775 2,227,569 950,128 1,277,441
Total current 1,033,775 2,724,214 2,326,619 397,595
Capital outlay:
General government 893,960 3,903,677 13,783 3,889,894
Public safety 773,000 1,372,497 480,217 892,280
Transportation 250,000 1,394,318 ‐ 1,394,318
Culture and recreation 3,439,535 11,578,016 2,412,220 9,165,796
Total capital outlay 5,356,495 18,248,508 2,906,220 15,342,288
Debt service:
Total debt service ‐ ‐ ‐ ‐
Total expenditures 6,390,270 20,972,722 5,232,839 15,739,883
Excess (deficiency) of revenues over expenditures (763,270)(12,288,514)4,653,374 16,941,888
OTHER FINANCING SOURCES (USES)
Transfer in 4,725,000 6,599,183 5,584,601 (1,014,582)
Transfers out (9,505)(329,019)(9,505)319,514
Sale of capital assets ‐ 996,622 911,622 (85,000)
Total other financing sources (uses)4,715,495 7,266,786 6,486,718 (780,068)
Net change in fund balances 3,952,225 (5,021,728)11,140,092 16,161,820
FUND BALANCE ‐ JANUARY 1 18,435,792 18,435,792 18,435,792 ‐
FUND BALANCE ‐ DECEMBER 31 $ 22,388,017 $ 13,414,064 $ 29,575,884 $ 16,161,820
Budgeted Amounts
City of Renton
Municipal Facilities CIP
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-13
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 1,473,974 $ 1,473,974 $ 1,473,974 $‐
Licenses and permits 617,016 617,016 394,726 (222,290)
Intergovernmental revenues 7,503,162 13,873,698 3,079,749 (10,793,949)
Charges for services ‐ ‐ 319,335 319,335
Fines and forfeits ‐ ‐ 31,951 31,951
Contributions ‐ 250,000 136,969 (113,031)
Interest revenue ‐ ‐ 33,234 33,234
Total revenues 9,594,152 16,214,688 5,469,938 (10,744,750)
EXPENDITURES
Current:
Transportation ‐ ‐ 2,549,291 (2,549,291)
Total current ‐ ‐ 2,549,291 (2,549,291)
Capital outlay:
Transportation 11,995,711 25,074,010 8,861,678 16,212,332
Total capital outlay 11,995,711 25,074,010 8,861,678 16,212,332
Total expenditures 11,995,711 25,074,010 11,410,969 13,663,041
Excess (deficiency) of revenues over expenditures (2,401,559)(8,859,322)(5,941,031)2,918,291
OTHER FINANCING SOURCES (USES)
Transfer in 1,712,500 4,297,500 4,263,989 (33,511)
Transfers out (15,000)(20,000)(44,823)(24,823)
Total other financing sources (uses)1,697,500 4,277,500 4,219,166 (58,334)
Net change in fund balances (704,059)(4,581,822)(1,721,865)2,859,957
FUND BALANCE ‐ JANUARY 1 8,496,380 8,496,380 8,496,380 ‐
FUND BALANCE ‐ DECEMBER 31 $ 7,792,321 $ 3,914,558 $ 6,774,515 $ 2,859,957
Budgeted Amounts
City of Renton
Capital Improvement
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-14
Variance with
Original Final Actual Final Budget
REVENUES
Charges for services $86,500 $86,500 $ 361,461 $ 274,961
Interest revenue ‐ ‐ 10,999 10,999
Total revenues 86,500 86,500 372,460 285,960
EXPENDITURES
Total expenditures ‐ ‐ ‐ ‐
Excess (deficiency) of revenues over expenditures 86,500 86,500 372,460 285,960
OTHER FINANCING SOURCES (USES)
Transfer in ‐ 319,514 ‐ (319,514)
Transfers out ‐ (54,074)(39,495)14,579
Total other financing sources (uses)‐ 265,440 (39,495)(304,935)
Net change in fund balances 86,500 351,940 332,965 (18,975)
FUND BALANCE ‐ JANUARY 1 1,575,305 1,575,305 1,575,305 ‐
FUND BALANCE ‐ DECEMBER 31 $ 1,661,805 $ 1,927,245 $ 1,908,270 $ (18,975)
Budgeted Amounts
City of Renton
Community Development Impact Mitigation
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-15
Variance with
Original Final Actual Final Budget
REVENUES
Charges for services $ 620,000 $ 620,000 $ 1,188,554 $ 568,554
Interest revenue ‐ ‐ 13,489 13,489
Total revenues 620,000 620,000 1,202,043 582,043
EXPENDITURES
Total expenditures ‐ ‐ ‐ ‐
Excess (deficiency) of revenues over expenditures 620,000 620,000 1,202,043 582,043
OTHER FINANCING SOURCES (USES)
Transfers out (1,005,000)(1,890,000)(1,890,000)‐
Total other financing sources (uses)(1,005,000)(1,890,000)(1,890,000)‐
Net change in fund balances (385,000)(1,270,000)(687,957)582,043
FUND BALANCE ‐ JANUARY 1 1,498,461 1,498,461 1,498,461 ‐
FUND BALANCE ‐ DECEMBER 31 $ 1,113,461 $ 228,461 $ 810,504 $ 582,043
Budgeted Amounts
City of Renton
Transportation Impact Mitigation
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-16
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 5,391,936 $ 5,391,936 $ 5,391,936 $‐
Intergovernmental revenues 424,693 424,693 575,908 151,215
Interest revenue ‐ ‐ 27,647 27,647
Total revenues 5,816,629 5,816,629 5,995,491 178,862
EXPENDITURES
Debt service:
Principal payment 4,672,672 4,672,672 4,672,672 ‐
Interest and fiscal charges 1,393,957 1,393,957 1,390,904 3,053
Total debt service 6,066,629 6,066,629 6,063,576 3,053
Total expenditures 6,066,629 6,066,629 6,063,576 3,053
Excess (deficiency) of revenues over expenditures (250,000)(250,000)(68,085)181,915
OTHER FINANCING SOURCES (USES)
Transfer in 158,696 158,696 ‐ (158,696)
Total other financing sources (uses)158,696 158,696 ‐ (158,696)
Net change in fund balances (91,304)(91,304)(68,085)23,219
FUND BALANCE ‐ JANUARY 1 2,428,018 2,428,018 2,428,018 ‐
FUND BALANCE ‐ DECEMBER 31 $ 2,336,714 $ 2,336,714 $ 2,359,933 $23,219
Budgeted Amounts
City of Renton
General Debt
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-17
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues $ 660,000 $ 660,000 $ 707,229 $47,229
Interest revenue ‐ ‐ 2,831 2,831
Total revenues 660,000 660,000 710,060 50,060
EXPENDITURES
Total expenditures ‐ ‐ ‐ ‐
Excess (deficiency) of revenues over expenditures 660,000 660,000 710,060 50,060
OTHER FINANCING SOURCES (USES)
Transfers out (660,000)(660,000)(660,000)‐
Total other financing sources (uses)(660,000)(660,000)(660,000)‐
Net change in fund balances ‐ ‐ 50,060 50,060
FUND BALANCE ‐ JANUARY 1 167,973 167,973 167,973 ‐
FUND BALANCE ‐ DECEMBER 31 $ 167,973 $ 167,973 $ 218,033 $50,060
Budgeted Amounts
City of Renton
Arterial Street
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-18
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 200,000 $ 200,000 $ 393,721 $ 193,721
Contributions 65,000 25,000 25,000 ‐
Interest revenue ‐ ‐ 2,759 2,759
Total revenues 265,000 225,000 421,480 196,480
EXPENDITURES
Current:
Economic environment 265,000 400,994 324,596 76,398
Total current 265,000 400,994 324,596 76,398
Total expenditures 265,000 400,994 324,596 76,398
Excess (deficiency) of revenues over expenditures ‐ (175,994)96,884 272,878
OTHER FINANCING SOURCES (USES)
Total other financing sources (uses)‐ ‐ ‐ ‐
Net change in fund balances ‐ (175,994)96,884 272,878
FUND BALANCE ‐ JANUARY 1 418,628 418,628 418,628 ‐
FUND BALANCE ‐ DECEMBER 31 $ 418,628 $ 242,634 $ 515,512 $ 272,878
Budgeted Amounts
City of Renton
Hotel/Motel Tax
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-19
Variance with
Original Final Actual Final Budget
REVENUES
Interest revenue $‐ $‐ $805 $805
Total revenues ‐ ‐ 805 805
EXPENDITURES
Capital outlay:
Culture and recreation 15,000 117,950 64,633 53,317
Total capital outlay 15,000 117,950 64,633 53,317
Total expenditures 15,000 117,950 64,633 53,317
Excess (deficiency) of revenues over expenditures (15,000)(117,950)(63,828)54,122
OTHER FINANCING SOURCES (USES)
Transfer in 24,505 24,505 38,328 13,823
Total other financing sources (uses)24,505 24,505 38,328 13,823
Net change in fund balances 9,505 (93,445)(25,500)67,945
FUND BALANCE ‐ JANUARY 1 128,550 128,550 128,550 ‐
FUND BALANCE ‐ DECEMBER 31 $ 138,055 $35,105 $ 103,050 $67,945
Budgeted Amounts
City of Renton
1% For Art
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-20
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $40,000 $40,000 $40,000 $‐
Licenses and permits 57,674 57,674 88,519 30,845
Contributions 25,000 25,000 ‐ (25,000)
Interest revenue ‐ ‐ 2,948 2,948
Total revenues 122,674 122,674 131,467 8,793
EXPENDITURES
Current:
Culture and recreation 82,674 82,674 23,521 59,153
Total current 82,674 82,674 23,521 59,153
Capital outlay:
Culture and recreation 40,000 40,000 30,422 9,578
Total capital outlay 40,000 40,000 30,422 9,578
Total expenditures 122,674 122,674 53,943 68,731
Excess (deficiency) of revenues over expenditures ‐ ‐ 77,524 77,524
OTHER FINANCING SOURCES (USES)
Total other financing sources (uses)‐ ‐ ‐ ‐
Net change in fund balances ‐ ‐ 77,524 77,524
FUND BALANCE ‐ JANUARY 1 394,697 394,697 394,697 ‐
FUND BALANCE ‐ DECEMBER 31 $ 394,697 $ 394,697 $ 472,221 $77,524
Budgeted Amounts
City of Renton
Cable Communications Development
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-21
Variance with
Original Final Actual Final Budget
REVENUES
Interest revenue $‐ $‐ $2,152 $2,152
Total revenues ‐ ‐ 2,152 2,152
EXPENDITURES
Total expenditures ‐ ‐ ‐ ‐
Excess (deficiency) of revenues over expenditures ‐ ‐ 2,152 2,152
OTHER FINANCING SOURCES (USES)
Total other financing sources (uses)‐ ‐ ‐ ‐
Net change in fund balances ‐ ‐ 2,152 2,152
FUND BALANCE ‐ JANUARY 1 334,185 334,185 334,185 ‐
FUND BALANCE ‐ DECEMBER 31 $ 334,185 $ 334,185 $ 336,337 $2,152
Budgeted Amounts
City of Renton
Springbrook Wetlands Bank
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-22
Airport Golf Course
Total Nonmajor
Enterprise Funds
ASSETS
Current assets:
Cash & cash equivalents $ 2,766,723 $ 219,169 $ 2,985,892
Investments at fair value 831,993 65,310 897,303
Receivables (net of allowances):
Customer accounts 24,758 21,677 46,435
Interest & penalties 9,871 813 10,684
Due from other governments 29,025 4,975 34,000
Supplies inventory ‐ 71,370 71,370
Total current assets 3,662,370 383,314 4,045,684
Noncurrent assets:
Capital assets not being depreciated:
Land 784,080 2,683,200 3,467,280
Construction in Progress 315,110 ‐ 315,110
Capital assets being depreciated/amortized:
Capital assets (net)20,055,111 4,471,168 24,526,279
Total noncurrent assets 21,154,301 7,154,368 28,308,669
TOTAL ASSETS 24,816,671 7,537,682 32,354,353
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 116,726 106,521 223,247
TOTAL DEFERRED OUTFLOWS OF RESOURCES 116,726 106,521 223,247
LIABILITIES
Current liabilities:
Accounts payable 161,506 19,756 181,262
Retainage payable 2,020 174 2,194
Wages and benefits payable 35,830 49,777 85,607
Taxes payable 1,099 5,691 6,790
Custodial accounts ‐ 278,147 278,147
Unearned revenue 168,702 ‐ 168,702
Compensated absences payable 17,513 62,487 80,000
Total current liabilities 386,670 416,032 802,702
Noncurrent liabilities:
Compensated absences payable 3,317 17,750 21,067
Net pension liability 705,113 643,468 1,348,581
Total noncurrent liabilities 708,430 661,218 1,369,648
TOTAL LIABILITIES 1,095,100 1,077,250 2,172,350
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 115,830 105,703 221,533
TOTAL DEFERRED INFLOWS OF RESOURCES 115,830 105,703 221,533
NET POSITION
Net investment in capital assets 21,154,301 7,154,368 28,308,669
Unrestricted 2,568,166 (693,118)1,875,048
TOTAL NET POSITION $ 23,722,467 $ 6,461,250 $ 30,183,717
City of Renton
Combining Statement of Net Position
Nonmajor Enterprise Funds
December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-23
Airport Golf Course
Total Nonmajor
Enterprise Funds
OPERATING REVENUES
Charges for services $ 191,206 $ 1,755,827 $ 1,947,033
Miscellaneous revenue 2,629,368 410,853 3,040,221
TOTAL OPERATING REVENUES 2,820,574 2,166,680 4,987,254
OPERATING EXPENSES
Supplies 62,801 312,879 375,680
Personnel Services 1,223,976 1,543,688 2,767,664
Services 737,155 309,726 1,046,881
Intergovernmental 2,978 10,056 13,034
Depreciation 1,151,094 209,657 1,360,751
TOTAL OPERATING EXPENSES 3,178,004 2,386,006 5,564,010
OPERATING INCOME (LOSS)(357,430)(219,326)(576,756)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental revenues 54,944 10,984 65,928
Interest revenue 20,372 830 21,202
Other non‐operating revenue (expenses)1,050 822 1,872
TOTAL NONOPERATING REVENUES (EXPENSES)76,366 12,636 89,002
CHANGE IN NET POSITION (281,064)(206,690)(487,754)
NET POSITION ‐ JANUARY 1 24,003,531 6,667,940 30,671,471
NET POSITION ‐ DECEMBER 31 $ 23,722,467 $ 6,461,250 $ 30,183,717
City of Renton
Combining Statement of Revenues, Expenses, and Changes in Net Position
Nonmajor Enterprise Funds
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-24
Airport Golf Course
Total
Nonmajor
Enterprise Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services 2,828,592$ 2,226,705$ 5,055,297$
Cash paid to suppliers for goods & services (842,817) (676,415) (1,519,232)
Cash paid to employees (927,044) (1,506,521) (2,433,565)
Other non‐operating receipts 1,050 822 1,872
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 1,059,781 44,591 1,104,372
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Operating grants 34,761 6,009 40,770
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES 34,761 6,009 40,770
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets (271,755) (32,315) (304,070)
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES (271,755) (32,315) (304,070)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of investments ‐ 11,555 11,555
Payments for investments (31,517) ‐ (31,517)
Interest on investments 17,041 1,276 18,317
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES (14,476) 12,831 (1,645)
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS 808,311 31,116 839,427
CASH & CASH EQUIVALENTS, JANUARY 1 1,958,412 188,053 2,146,465
CASH & CASH EQUIVALENTS, DECEMBER 31 2,766,723$ 219,169$ 2,985,892$
BUSINESS‐TYPE ACTIVITIES
ENTERPRISE FUNDS
City of Renton
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended December 31, 2017
Page 1 of 2
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-25
Airport Golf Course
Total
Nonmajor
Enterprise Funds
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)(357,430)$ (219,326)$ (576,756)$
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization 1,151,094 209,657 1,360,751
Other non‐operating revenue 1,050 822 1,872
(Increase) decrease in
accounts receivable 4,433 (12,850) (8,417)
(Increase) decrease in inventory
& prepaid items ‐ (12,264) (12,264)
(Increase) decrease in deferred outflows
related to pensions (37,327) 19,426 (17,901)
Increase (decrease) in operating
accounts payable (24,751) (33,662) (58,413)
Increase (decrease) in accrued taxes
& other short‐term liabilities (15,132) 2,172 (12,960)
Increase (decrease) in
customer deposits ‐ 72,875 72,875
Increase (decrease) in
unearned revenues 3,585 ‐ 3,585
Increase (decrease) in accrued
employee leave benefits (21,455) 5,729 (15,726)
Increase (decrease) in net pension liability
and deferred inflows related to pensions 355,714 12,012 367,726
Total adjustments 1,417,211 263,917 1,681,128
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 1,059,781 44,591 1,104,372
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Depreciation & amortization 1,151,094$ 209,657$ 1,360,751$
ENTERPRISE FUNDS
BUSINESS‐TYPE ACTIVITIES
City of Renton
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended December 31, 2017
Page 2 of 2
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-26
Equipment Rental Insurance
Total
Internal
Service Funds
ASSETS
Current assets:
Cash & cash equivalents $ 10,121,222 $ 26,331,784 $ 36,453,006
Investments at fair value 3,043,816 7,918,915 10,962,731
Receivables (net of allowances):
Customer accounts 20,949 21,607 42,556
Interest & penalties 42,579 108,016 150,595
Interfund loans ‐ 175,000 175,000
Supplies inventory 201,811 ‐ 201,811
Prepayments ‐ 157,173 157,173
Total current assets 13,430,377 34,712,495 48,142,872
Noncurrent assets:
Advances due from other funds ‐ 350,000 350,000
Capital assets not being depreciated:
Construction in Progress 144,806 ‐ 144,806
Capital assets being depreciated/amortized:
Capital assets (net)9,643,603 ‐ 9,643,603
Intangible assets (net)338,957 ‐ 338,957
Total noncurrent assets 10,127,366 350,000 10,477,366
TOTAL ASSETS 23,557,743 35,062,495 58,620,238
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 551,105 46,710 597,815
TOTAL DEFERRED OUTFLOWS OF RESOURCES 551,105 46,710 597,815
LIABILITIES
Current liabilities:
Accounts payable 507,257 194,083 701,340
Claims incurred but not reported ‐ 2,103,615 2,103,615
Retainage payable 14 ‐ 14
Wages and benefits payable 273,406 21,145 294,551
Taxes payable 11,608 ‐ 11,608
Compensated absences payable 308,001 14,754 322,755
Leases payable 35,129 ‐ 35,129
Total current liabilities 1,135,415 2,333,597 3,469,012
Noncurrent liabilities:
Compensated absences payable 117,969 4,202 122,171
Leases payable 35,850 ‐ 35,850
Net pension liability 3,329,092 282,161 3,611,253
Total noncurrent liabilities 3,482,911 286,363 3,769,274
TOTAL LIABILITIES 4,618,326 2,619,960 7,238,286
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 546,875 46,351 593,226
TOTAL DEFERRED INFLOWS OF RESOURCES 546,875 46,351 593,226
NET POSITION
Net investment in capital assets 10,056,387 ‐ 10,056,387
Unrestricted 8,887,260 32,442,894 41,330,154
TOTAL NET POSITION $ 18,943,647 $ 32,442,894 $ 51,386,541
City of Renton
Combining Statement of Net Position
Internal Service Funds
December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-27
Equipment Rental Insurance
Total
Internal
Service Funds
OPERATING REVENUES
Charges for services $ 16,585,590 $ 15,881,734 $ 32,467,324
Miscellaneous revenue 205,175 ‐ 205,175
TOTAL OPERATING REVENUES 16,790,765 15,881,734 32,672,499
OPERATING EXPENSES
Supplies 2,189,425 10,032 2,199,457
Personnel Services 6,408,723 554,519 6,963,242
Services 3,957,758 847,902 4,805,660
Insurance ‐ 11,239,609 11,239,609
Intergovernmental 13,829 3,828 17,657
Depreciation 2,268,141 ‐ 2,268,141
TOTAL OPERATING EXPENSES 14,837,876 12,655,890 27,493,766
OPERATING INCOME (LOSS)1,952,889 3,225,844 5,178,733
NONOPERATING REVENUES (EXPENSES)
Intergovernmental revenues ‐ 47,440 47,440
Interest revenue 76,061 181,087 257,148
Gain (loss) on sale of capital assets 75,567 ‐ 75,567
Other non‐operating revenue (expenses)838 4,109 4,947
Interest expense (2,979)‐ (2,979)
Insurance Recoveries ‐ 210,260 210,260
TOTAL NONOPERATING REVENUES (EXPENSES)149,487 442,896 592,383
INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 2,102,376 3,668,740 5,771,116
Capital contributions 7,110 ‐ 7,110
Transfers in 857,277 4,100,000 4,957,277
Transfers out (13,989)‐ (13,989)
CHANGE IN NET POSITION 2,952,774 7,768,740 10,721,514
NET POSITION ‐ JANUARY 1 16,104,580 24,674,154 40,778,734
Prior Period Adjustment (113,707)‐ (113,707)
NET POSITION ‐ JANUARY 1 RESTATED 15,990,873 24,674,154 40,665,027
NET POSITION ‐ DECEMBER 31 $ 18,943,647 $ 32,442,894 $ 51,386,541
City of Renton
Combining Statement of Revenues, Expenses, and Changes in Net Position
Internal Service Funds
For the Year Ended December 31, 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-28
Total
Equipment Insurance Internal
Rental Fund Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from other funds for services $ 16,778,889 $ 15,882,827 $ 32,661,716
Cash paid to suppliers for goods & services (6,403,279) (12,684,940) (19,088,219)
Cash paid to employees (6,474,391) (599,253) (7,073,644)
Other non‐operating receipts 838 214,369 215,207
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 3,902,057 2,813,003 6,715,060
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds 857,277 4,100,000 4,957,277
Transfers to other funds (13,989) (89,876) (103,865)
Operating grants ‐ 47,440 47,440
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES 843,288 4,057,564 4,900,852
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Proceeds from the sale of equipment 179,401 ‐ 179,401
Acquisition & construction of capital assets (3,317,973) ‐ (3,317,973)
Capital grants 7,110 ‐ 7,110
Principal payments on capital leases (33,924) ‐ (33,924)
Interest payments on capital leases (2,979) ‐ (2,979)
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES (3,168,365) ‐ (3,168,365)
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal proceeds from interfund loans ‐ 175,000 175,000
Proceeds from sale of investments 297,758 ‐ 297,758
Payments for investments ‐ (77,135) (77,135)
Interest on investments and loans 71,124 177,971 249,095
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES 368,882 275,836 644,718
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS 1,945,862 7,146,403 9,092,265
CASH & CASH EQUIVALENTS, JANUARY 1 8,175,360 19,185,381 27,360,741
CASH & CASH EQUIVALENTS, DECEMBER 31 $ 10,121,222 $ 26,331,784 $ 36,453,006
City of Renton
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended December 31, 2017
Page 1 of 2
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-29
Total
Equipment Insurance Internal
Rental Fund Service Funds
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)$1,952,889 $3,225,844 $5,178,733
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization 2,268,141 ‐ 2,268,141
Other non‐operating revenue 838 214,369 215,207
Abandonment of construction project 30,000 ‐ 30,000
(Increase) decrease in
accounts receivable (13,079) 1,093 (11,986)
(Increase) decrease in inventory
& prepaid items (14,450) 1,844 (12,606)
(Increase) decrease in deferred outflows
related to pensions 154,299 20,607 174,906
Increase (decrease) in operating
accounts payable (257,817) (128,113) (385,930)
Increase (decrease) in accrued taxes
& other short‐term liabilities 1,224 (457,300) (456,076)
Increase (decrease) in
unearned revenues (21) ‐ (21)
Increase (decrease) in accrued
employee wages and benefits 32,157 (702) 31,455
Increase (decrease) in net pension liability
and deferred inflows related to pensions (252,124) (64,639) (316,763)
Total adjustments 1,949,168 (412,841) 1,536,327
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES $3,902,057 $2,813,003 $6,715,060
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Depreciation & amortization $2,268,141 $‐ $2,268,141
City of Renton
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended December 31, 2017
Page 2 of 2
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-30
Beginning Ending
Balance Debits Credits Balance
ASSETS
Cash 758,839$ 2,669,330$ 1,284,185$ 2,143,984$
Investments at fair value ‐ 565,912 350,346 215,566
Interest receivable ‐ 7,821 3,740 4,081
TOTAL ASSETS 758,839$ 3,243,063$ 1,638,271$ 2,363,631$
LIABILITIES
Vouchers and contracts payable 52,631$ 556,742$ 508,111$ 4,000$
Deposits payable 706,208 1,105,172 2,758,595 2,359,631
TOTAL LIABILITIES 758,839$ 1,661,914$ 3,266,706$ 2,363,631$
Statement of Changes in Assets and Liabilties
Agency Fund ‐ Special Deposit
For the Year Ended December 31, 2017
City of Renton
2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-31
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2017 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-32
2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-1
STATISTICAL SECTION
December 31, 2017
Presentations included in the Statistical Section of the Comprehensive Annual Financial Report (CAFR)
provide users detailed information as a context for understanding what the information in the financial
statements, note disclosures and the supporting schedules say about the government’s overall financial
health. The section is divided into five categories based on the following:
FINANCIAL TRENDS
These schedules contain trend information to help the reader unders tand how the government’s financial
performance and well-being have changed over time.
REVENUE CAPACITY
These schedules present information to help the reader assess the government’s most significant local
revenue source – property tax.
DEBT CAPACITY
These schedules present information to help the reader assess the affordability of the government’s current
levels of outstanding debt and the government’s ability to issue additional debt in the future.
DEMOGRAPHIC AND ECONOMIC INFORMATION
These schedules offer demographic and economic indicators to help the reader understand the environment
within which the government’s financial activities take place.
OPERATING INFORMATION
These schedules contain service and infrastructure data to help the reader understand how the information
in the government’s financial report relates to the services the government provides and the activities it
performs.
TABLE 1NET POSITION BY COMPONENTLAST TEN FISCAL YEARS(accrual basis of accounting)2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Governmental activitiesNet investment in capital assets353,197,782$ 378,440,636$ 383,016,494$ 373,641,842$ 425,581,342$ 445,277,657$ 457,337,430$ 467,609,532$ 453,278,699$ 466,996,814$ Restricted33,294,987 20,882,824 11,664,101 26,432,127 7,953,634 23,873,159 18,973,294 26,987,147 18,939,968 31,304,501 Unrestricted34,160,010 35,033,629 45,911,214 53,244,297 54,159,950 41,681,336 57,074,155 50,203,343 61,174,111 77,331,398 Total governmental activities net position420,652,779$ 434,357,089$ 440,591,809$ 453,318,266$ 487,694,926$ 440,591,809$ 453,318,266$ 544,800,022$ 533,392,778$ 575,632,713$ Business‐type activitiesNet investment in capital assets202,255,997$ 208,682,683$ 214,001,083$ 217,103,722$ 224,893,271$ 241,679,585$ 255,631,135$ 271,016,825$ 279,506,339$ 281,531,560$ Restricted4,171,525 4,029,537 58,747 ‐ 2,909,578 2,909,578 2,909,578 2,909,578 2,909,578 2,810,145 Unrestricted17,430,207 18,209,611 17,743,107 23,340,910 28,692,024 34,537,714 41,941,669 51,330,478 63,236,920 72,699,879 Total business‐type activities net position223,857,729$ 230,921,831$ 231,802,937$ 240,444,632$ 256,494,873$ 231,802,937$ 240,444,632$ 325,256,881$ 345,652,837$ 357,041,584$ Primary governmentNet investment in capital assets587,123,319$ 597,017,577$ 597,017,577$ 590,745,564$ 686,957,242$ 686,957,242$ 712,968,565$ 738,626,357$ 732,785,038$ 748,528,374$ Restricted24,912,361 11,722,848 11,722,848 26,432,127 26,782,737 26,782,737 21,882,872 29,896,725 21,849,546 34,114,646 Unrestricted53,243,240 63,654,321 63,654,321 76,585,207 76,219,050 76,219,050 99,015,824 101,533,821 124,411,031 150,031,277 Total primary government net position665,278,920$ 672,394,746$ 672,394,746$ 693,762,898$ 789,959,029$ 672,394,746$ 693,762,898$ 870,056,903$ 879,045,615$ 932,674,297$ Source : City of Renton Finance DivisionFiscal Year2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-2
TABLE 2CHANGES IN NET POSITIONLAST TEN FISCAL YEARS(accrual basis of accounting)Page 1 of 2EXPENSES2008200920102011201220132014201520162017Government activities:General government12,010,422$ 18,808,404$ 10,018,501$ 4,268,321$ 9,859,550$ 10,923,530$ 10,730,427$ 9,829,338$ 10,230,923$ 11,619,780$ Judicial1,761,665 2,134,283 2,402,692 2,563,989 2,610,481 2,372,115 2,406,797 2,342,557 2,501,487 2,631,350 Public safety46,289,454 44,361,089 50,657,146 52,627,849 58,152,773 53,930,214 55,143,750 57,863,131 49,272,668 34,970,381 Utilities3,333,471 2,440,801 2,425,279 2,151,322 2,643,930 964,942 746,363 694,469 691,798 686,356 Transportation13,675,581 11,765,835 16,903,492 25,376,308 13,571,691 18,842,487 14,641,476 15,918,953 19,560,699 18,369,818 Economic and natural environment6,823,426 6,669,911 7,363,396 6,491,151 6,330,233 7,146,022 6,584,984 7,362,822 7,578,069 8,280,445 Health and human services325,066 328,333 882,740 819,138 827,802 1,873,028 1,885,761 1,925,253 2,098,190 2,210,690 Culture and recreation17,025,800 16,992,266 13,518,312 11,955,737 13,011,327 12,938,589 12,338,932 13,636,384 12,999,863 14,307,593 Interest on long‐term debt2,663,436 2,848,081 2,127,347 2,165,960 3,087,269 3,411,488 2,932,298 1,247,934 948,685 1,146,722 Total governmental activities expenses103,908,321 106,349,003 106,298,905 108,419,775 110,095,056 112,402,415 107,410,788 110,820,841 105,882,382 94,223,135 Business‐type activities:Airport1,733,894 1,865,481 1,993,202 2,026,804 2,251,434 3,300,550 2,771,616 3,818,201 2,974,582 3,178,004 Golf course2,334,838 2,303,192 2,296,870 2,099,936 2,139,847 2,250,748 2,298,804 2,200,740 2,173,590 2,386,006 Solid Waste11,518,047 14,143,956 14,826,315 14,434,201 14,780,647 16,226,857 17,157,550 16,907,652 16,850,054 19,367,124 Waterworks Utility32,738,366 35,617,861 36,574,469 37,148,813 39,419,864 40,333,170 43,274,617 44,983,542 53,960,170 51,849,388 Total Business‐type activities expenses48,325,145 53,930,490 55,690,856 55,709,754 58,591,792 62,111,325 65,502,587 67,910,135 75,958,396 76,780,522 Total Primary Government expenses152,233,466 160,279,493 161,989,761 164,129,529 168,686,848 174,513,740 172,913,375 178,730,976 181,840,778 171,003,657 PROGRAM REVENUESGovernmental activities:Charges for services:General government 5,614,638 2,864,232 2,363,280 2,756,613 2,586,799 3,372,595 4,336,464 4,354,150 5,028,744 7,954,848 Judicial 2,420,913 5,176,402 3,706,436 3,565,216 3,493,071 3,011,028 3,059,061 3,476,485 3,077,775 3,318,723 Public safety550,773 643,970 761,835 641,483 650,129 6,578,528 6,961,962 7,677,351 4,836,073 1,478,987 Utilities864,581 951,940 1,233,424 1,015,323 1,326,517 3,755 278,568 668 1,436 ‐ Transportation 2,165,538 3,178,543 3,111,259 3,275,596 3,329,054 2,712,137 3,140,008 3,823,320 2,638,216 2,218,114 Economic and natural environment4,236,983 1,965,125 2,419,488 2,486,396 3,130,530 3,766,499 3,791,108 5,641,135 4,992,629 4,814,488 Health and human services‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Culture and recreation 1,739,055 2,377,290 2,299,635 1,793,863 1,811,127 2,096,514 2,676,783 2,331,046 2,260,812 2,347,627 Operating grants and contributions9,570,931 11,029,657 10,520,151 15,540,897 12,794,132 6,621,431 6,422,816 6,614,030 8,226,834 5,984,222 Capital grants and contributions18,109,124 16,091,934 9,102,331 12,135,982 33,529,033 23,077,914 11,640,501 8,658,075 10,913,636 10,167,007 Total governmental activities program revenues45,272,536 44,279,093 35,517,839 43,211,369 62,650,392 51,240,401 42,307,271 42,576,260 41,976,155 38,284,016 Business‐type activities:Charges for services:Airport1,086,064 1,254,732 2,039,477 2,294,383 2,436,543 2,494,436 2,652,808 2,614,311 2,718,441 2,820,574 Golf course2,262,841 2,134,394 2,095,751 2,014,983 2,128,452 2,142,433 2,127,512 2,302,635 2,196,062 2,166,680 Solid waste utility10,192,718 14,234,026 15,383,667 15,015,434 14,905,934 16,429,165 17,310,807 17,146,266 17,152,279 17,787,705 Waterworks Utility31,110,061 33,278,345 35,545,308 43,003,494 47,314,389 49,024,626 51,354,475 53,263,702 53,685,591 56,202,702 Total Business‐type charges44,651,684 50,901,497 55,064,203 62,328,294 66,785,318 70,090,660 73,445,602 75,326,914 75,752,373 78,977,661 Operating grants and contributions264,784 46,267 125,819 465,468 165,164 105,695 1,108,920 704,367 8,400,008 1,213,388 Capital grants and contributions6,888,975 7,556,701 1,056,961 2,473,309 7,668,558 18,879,992 12,531,671 23,291,274 12,559,755 7,664,875 Total business‐type activities program revenues51,805,443 58,504,465 56,246,983 65,267,071 74,619,040 89,076,347 87,086,193 99,322,555 96,712,136 87,855,924 Total primary government program revenues97,077,979$ 102,783,558$ 91,764,822$ 108,478,440$ 137,269,432$ 140,316,748$ 129,393,464$ 141,898,815$ 138,688,291$ 126,139,940$ Net (expense)/revenueGovernmental activities(58,635,785)$ (62,069,910)$ (70,781,066)$ (65,208,406)$ (47,444,664)$ (61,162,014)$ (65,103,517)$ (68,244,581)$ (63,906,227)$ (55,939,119)$ Business‐type activities3,480,298 4,573,975 556,127 9,557,317 16,027,248 26,965,022 21,583,606 31,412,420 20,753,740 11,075,402 Total primary government net expense(55,155,487)$ (57,495,935)$ (70,224,939)$ (55,651,089)$ (31,417,416)$ (34,196,992)$ (43,519,911)$ (36,832,161)$ (43,152,487)$ (44,863,717)$ Fiscal Year2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-3
TABLE 2CHANGES IN NET POSITIONLAST TEN FISCAL YEARS(accrual basis of accounting)Page 2 of 2GENERAL REVENUES AND OTHER CHANGES2008200920102011201220132014201520162017Governmental activities:TaxesProperty taxes29,381,036$ 32,300,319$ 32,586,884$ 33,309,975$ 33,932,290$ 32,536,533$ 35,112,669$ 35,418,323$ 37,105,988$ 24,669,058$ Timber taxes‐$ ‐ ‐ ‐ ‐ ‐ ‐ Retail sales taxes23,190,076 22,065,316 21,591,375 22,008,777 23,653,706 25,541,972 27,223,521 29,567,506 32,933,987 33,381,395 Business taxes14,945,173 14,876,496 16,883,888 16,870,284 17,632,759 16,439,502 18,575,350 20,561,270 26,376,964 30,135,189 Excise taxes4,362,945 4,923,978 4,351,914 4,113,705 4,286,883 5,838,149 4,595,540 5,736,582 6,123,700 7,193,498 Penalties and interest6,477 1,353 276 380 9,486 ‐ ‐ ‐ ‐ ‐ Investment earnings2,419,260 1,118,889 794,793 602,516 589,616 613,097 1,137,752 1,303,414 1,441,471 1,587,589 Miscellaneous2,104,133 172,594 82,352 991,772 1,179,112 1,232,066 760,292 580,042 1,746,009 689,371 Gain (loss) on sale of capital assets1‐ ‐ ‐ ‐ ‐ ‐ (198,242) 17,109 13,710 992,114 Transfers110,000 (100,000) (17,095) 37,454 233,961 2,341,160 449,362 131,491 173,917 218,212 Special ItemsTransfer of fire operations(32,665,407) ‐ Transfer of library assets(18,527,290) ‐ Total governmental activities76,519,100 75,358,945 76,274,387 77,934,863 81,517,813 84,542,479 87,656,244 93,315,737 54,723,049 98,866,426 Business‐type activities:Investment earnings1,120,342 396,957 224,974 117,090 105,129 94,077 96,625 225,515 332,931 483,356 Miscellaneous85,493 1,207,689 172,663 71,235 44,842 124,281 30,863 38,014 18,051 48,201 Gain (loss) on sale of capital assets1‐ ‐ ‐ ‐ ‐ ‐ 93,773 (701,718) ‐ ‐ Transfers(110,000) 100,000 17,095 (37,454) (233,961) (2,341,160) (449,362) (131,491) (173,917) (218,212) Total business‐type activities1,095,835 1,704,646 414,732 150,871 (83,990) (2,122,802) (228,101) (569,680) 177,065 313,345 Total primary government77,614,935$ 77,063,591$ 76,689,119$ 78,085,734$ 81,433,823$ 82,419,677$ 87,428,143$ 92,746,057$ 54,900,114$ 99,179,771$ CHANGES IN NET POSITIONGovernmental activities17,883,315$ 13,289,035$ 5,493,321$ 12,726,457$ 34,073,149$ 23,380,465$ 22,552,727$ 25,071,156$ (9,183,178)$ 42,927,307$ Business‐type activities4,576,133 6,278,621 970,859 9,708,188 15,943,258 24,842,220 21,355,505 30,842,740 20,930,805 11,388,747 Total primary government22,459,448$ 19,567,656$ 6,464,180$ 22,434,645$ 50,016,407$ 48,222,685$ 43,908,232$ 55,913,896$ 11,747,627$ 54,316,054$ Source : City of Renton Finance Division1 Prior to 2014 Gain (loss) on sale of capital assets were previously reported as "Miscellaneous".2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-4
TABLE 3FUND BALANCE OF GOVERNMENT FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)2008 2009 2010 2011 2012 2013 2014 2015 2016 2017General fundReserved8,000$ 8,000$ 2,468,569$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Unreserved13,509,097 13,478,727 12,020,420 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Nonspendable1‐ ‐ ‐ 1,149,907 ‐ ‐ ‐ ‐ 200,000 ‐ Restricted1‐ ‐ ‐ 786,611 690,655 303,051 250,717 156,105 974,770 1,341,610 Committed1‐ ‐ ‐ ‐ ‐ 4,236,362 ‐ 1,185,085 ‐ ‐ Assigned1‐ ‐ ‐ 13,812,258 16,566,659 15,929,712 286,516 260,342 236,772 8,853,636 Unassigned1‐ ‐ ‐ ‐ 1,427,130 ‐ 19,517,236 20,183,002 28,579,805 29,077,267 Total general fund13,517,097$ 13,486,727$ 14,488,989$ 15,748,776$ 18,684,444$ 20,469,125$ 20,054,469$ 21,784,534$ 29,991,347$ 39,272,513$ All other governmental fundsReserved1,000,000$ ‐$ 6,771,384$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Unreserved, reported in:Special revenue funds2,806,667 2,106,370 2,073,227 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Debt service funds1,270,936 367,652 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital project funds29,217,384 18,408,802 8,701,843 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Nonspendable1‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 64,783 ‐ Restricted1‐ ‐ ‐ 19,152,913 23,730,688 22,888,877 18,722,577 7,841,326 7,528,348 13,049,222 Committed1‐ ‐ ‐ 7,468,491 6,085,812 8,513,816 ‐ 15,844,472 20,134,020 11,763,443 Assigned1‐ ‐ ‐ 6,828,410 1,220,008 137,605 12,594,651 3,290,869 6,150,838 18,261,594 Unassigned1‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total all other governmental funds34,294,987$ 20,882,824$ 17,546,454$ 33,449,814$ 31,036,508$ 31,540,298$ 31,317,228$ 26,976,667$ 33,877,989$ 43,074,259$ Source : City of Renton Finance Division1 In 2011, implementation of GASB 54 requires new designations of fund balance; prior year data not available in prescribed format $‐ $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,0002008200920102011201220132014201520162017General fundAll other governmental funds2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-5
TABLE 4CHANGES IN FUND BALANCES OF GOVERNMENT FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)2008200920102011201220132014201520162017REVENUESTaxes72,514,388$ 71,545,700$ 75,223,750$ 76,266,688$ 79,878,467$ 80,300,752$ 85,244,091$ 91,417,887$ 102,741,519$ 95,576,042$ Licenses and permits4,975,585 6,226,371 3,975,441 4,410,862 4,843,4466,828,797 7,724,038 8,541,090 7,504,210 6,462,056 Intergovernmental 27,549,621 23,968,44916,203,49919,441,957 33,430,07822,879,043 13,717,109 10,546,797 14,058,888 10,944,312 Charges for services7,145,9504,543,4204,635,502 4,191,024 4,497,039 9,641,812 11,030,501 13,337,291 9,077,603 6,863,066 Fines and forfeits2,002,8543,724,162 3,439,9263,150,326 3,053,9382,788,573 2,708,477 3,049,542 3,131,466 2,978,800 Interfund revenues3,072,526 3,228,110 3,244,928 3,057,642 3,375,134 294,039 264,539 296,649 ‐ ‐ Special assessments‐ 1,353 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Contributions 135,000 516,805 2,952,649 4,288,448 1,488,384 3,878,978 947,927 187,616 792,699 551,968 Investment Earnings1,740,035 753,607 550,134 475,278 494,518 500,330 1,039,626 1,108,572 1,214,516 1,330,442 Miscellaneous Revenues1,273,359 171,004 82,353 648,608 942,998 2,208,853 2,117,198 1,994,532 3,036,059 2,280,640 Total revenues120,409,318 114,678,981 99,848,821 120,409,318 114,678,981 110,308,182 115,930,833 130,479,976 141,556,960 126,987,326 EXPENDITURES CurrentGeneral government15,094,140 12,923,999 10,532,537 10,937,806 8,371,489 9,348,241 10,142,332 11,334,485 11,961,260 12,492,727 Judicial 1,761,665 2,134,283 2,402,692 2,563,989 2,610,481 2,364,631 2,400,097 2,461,668 2,536,835 2,650,678 Public safety45,530,208 46,048,967 48,904,653 52,986,589 54,378,422 53,112,143 55,174,723 58,211,446 47,619,491 36,063,481 Utilities 3,123,883 2,431,213 2,345,459 2,048,971 2,608,369 468,442 252,826 236,245 238,057 240,611 Transportation 6,332,006 7,043,665 10,748,393 10,038,344 10,137,750 11,769,366 10,092,425 10,898,934 13,631,324 12,567,755 Economic environment6,673,681 7,071,009 7,205,500 6,447,163 6,283,264 6,652,593 6,088,295 6,628,136 7,130,650 7,730,872 Health and human services16,459 19,726 787,768 511,934 523,577 1,827,736 1,840,312 1,876,841 2,068,295 2,175,116 Culture and recreation11,119,073 14,914,298 12,310,530 11,166,081 11,537,450 11,040,787 10,942,620 12,250,743 11,786,172 13,080,103 Capital outlay28,520,453 41,989,793 12,216,152 14,981,858 24,989,777 25,356,592 16,829,123 20,274,185 12,637,649 11,895,890 Debt servicePrincipal payments2,079,551 2,327,138 2,682,672 2,783,237 7,116,917 4,744,439 5,076,530 4,834,225 4,530,216 4,672,672 Interest and fiscal charges2,729,247 2,629,157 2,231,823 2,502,876 3,368,903 3,315,011 3,324,433 1,660,586 1,570,322 1,390,904 Total expenditures122,980,366 139,533,248 109,621,957 122,980,366 139,533,248 112,368,179 116,968,848 130,667,494 115,710,271 104,960,809 EXCESS (DEFICIENCY) OF REVENUESOVER EXPENDITURES(2,571,048) (24,854,267) (9,773,136) (2,571,048) (24,854,267) (2,059,997) (1,038,015) (187,518) 25,846,689 22,026,517 OTHER FINANCING SOURCES (USES)Transfers in4,053,607 15,059,649 2,545,659 3,886,650 4,183,185 5,860,038 5,175,933 9,326,629 10,252,886 9,891,918 Transfer (out)(4,200,607) (10,446,000) (2,822,330) (4,144,157) (4,113,465) (6,102,584) (8,463,285) (10,786,043) (8,480,721) (14,374,763) Interfund loan proceeds‐ 6,798,085 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Refunding bonds issued‐ ‐ 6,170,000 9,425,000 ‐ ‐ ‐ 12,520,000 ‐ ‐ GO Bonds issued‐ ‐ ‐ 16,715,000 ‐ 3,200,000 ‐ ‐ ‐ ‐ Premium on general obligation debt‐ ‐ 443,484 2,268,169 ‐ ‐ ‐ 1,171,804 ‐ ‐ Sale of capital assets20,643 ‐ ‐ 500 375,039 9,821 5,170 ‐ ‐ 916,547 Payment to refunded bond escrow agent‐ ‐ (6,406,088) (9,950,000) ‐ ‐ ‐ (13,573,341) ‐ ‐ Insurance Recoveries‐ ‐ ‐ ‐ ‐ ‐ 14,666 14,724 29,061 17,217 Total other financing sources (uses)(126,357) 11,411,734 (69,275) 18,201,162 444,759 2,967,275 18,201,162 (1,326,227) 1,801,226 (3,549,081) SPECIAL ITEMSTransfer of fire operations(12,300,367) ‐ Total special items‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (12,300,367) ‐ Net change in fund balance(2,697,405)$ (13,442,533)$ (9,748,918)$ (2,697,405)$ (13,442,533)$ (2,129,272)$ 17,163,147$ (1,513,745)$ 15,347,548$ 18,477,436$ Debt service as a percentage ofnon capital expenditures5.09%5.08%4.91%5.18%7.70%7.98%7.98%5.88%5.92%6.52%Source : City of Renton Finance DivisionTables prior to 2010 used the titles "Security of persons and property" and "Mental and physical health" for functions now being referred to as "Public Safety" and "Health and Human Services", respectively. Tables Prior to 2013 used the title "Physical environment" for functions now being referred to as "Utilities".2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-6
TABLE 5WATER UTILITY SYSTEMS REVENUE INFORMATIONLAST TEN FISCAL YEARS 12008 2009 2010 2011 2012 2013 2014 2015 2016 2017City Population78,780 83,650 90,927 92,590 93,910 95,540 97,130 98,470 101,300 102,700Water SystemRate Increase6.0% 4.0% 10.0% 18.0% 16.0% 5.0% 5.0% 0.0% 0.0% 0.0%BillingSingle Family3,620,896$ 3,951,900$ 4,141,600$ 4,811,663$ 9,575,942$ 5,887,603$ 6,339,653$ 6,526,128$ 6,386,047$ 6,558,914$ Multi‐Family, Commercial, Industrial4,019,419 4,416,609 4,621,839 5,538,570 6,410,943 6,772,971 6,977,452 6,823,857 7,072,435 7,297,389 Irrigation1,212,864 1,622,663 1,240,240 1,546,874 1,922,822 1,468,453 2,245,010 2,537,017 2,357,006 2,425,206 Fire Service144,182 166,858 186,289 227,699 275,952 292,149 311,936 315,931 322,539 333,951 Other2281,779 307,738 416,032 342,100 454,370 443,825 488,502 607,944 506,044 489,559 Total Water Billing9,279,140 10,465,768 10,606,000 12,466,906 18,640,029 14,865,001 16,362,553 16,810,877 16,644,071 17,105,020 Wastewater SystemRate Increase6.0% 4.0% 4.0% 42.0% 5.0% 5.0% 5.0% 0.0% 0.0% 4.0%BillingSingle Family2,595,914$ 2,784,269$ 2,896,646$ 4,194,277$ 4,464,521$ 4,757,734$ 5,069,164$ 5,173,757$ 5,262,490$ 5,551,146$ Multi‐Family, Commercial, Industrial, Other 2,477,951 2,551,837 2,651,028 3,751,082 4,059,646 4,359,018 4,560,119 4,217,237 4,467,264 4,627,298 Total City Wastewater Billing5,073,865 5,336,106 5,547,674 7,945,359 8,524,167 9,116,752 9,629,283 9,390,994 9,729,754 10,178,444 King County Metro Charges10,085,728 11,724,091 11,774,984 13,468,616 13,751,047 15,357,431 15,440,140 15,556,018 16,156,367 16,865,542 Total All15,159,593 17,060,197 17,322,658 21,413,975 22,275,214 24,474,183 25,069,423 24,947,012 25,886,121 27,043,986 Storm Water SystemRate Increase6.5% 0.0% 0.0% 40.0% 11.0% 5.0% 5.0% 4.0% 4.0% 4.0%BillingSingle Family1,638,970$ 1,813,889$ 1,834,693$ 2,602,439$ 2,952,519$ 3,130,413$ 3,332,758$ 3,498,882$ 3,671,923$ 3,848,958$ Multi‐Family, Commercial, Industrial, Other 2,903,728 3,185,980 3,075,580 4,342,672 4,801,900 5,035,416 5,742,495 6,012,017 6,235,149 6,690,859 Total Storm Water Billing4,542,698 4,999,869 4,910,273 6,945,111 7,754,419 8,165,829 9,075,253 9,510,899 9,907,072 10,539,817 1 Data for prior years provided where available.2 Includes wholesale water provided to the Skyway Water and Sewer District through a single metered connection.2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-7
TABLE 6PRINCIPAL RATEPAYERSPage 1 of 3WATER2017 2008% of Total% of TotalRatepayerRevenue Rank RevenueRevenue Rank RevenueBoeing Commercial541,985$ 1 3.17%286,163$ 1 3.08%King County457,108 2 2.67%232,287 3 2.50%City Of Renton430,427 3 2.52%251,127 2 2.71%Renton School District181,302 4 1.06%80,463 7 0.87%Skyway Water and Sewer District161,496 5 0.94% 101,018 4 1.09%Public Hosp Dist #1 of KC132,079 6 0.77%91,097 5 0.98%CPT The Landing LLC120,402 7 0.70%‐ 0.00%PUR WASATCH Apartments LLC114,825 8 0.67%Copper Ridge Renton LLC114,659 9 0.67%‐ 0.00%Renton Housing Authority110,972 10 0.65%‐ 0.00%Ashburn Condominiums63,045 9 0.68%The Arbors at Sunset61,541 10 0.66%Service Linen Supply Inc83,807 6 0.90%Axis Grand Apartments70,415 8 0.76%All Other8,344,976 48.79% 4,442,225 47.87%Single Family6,394,280 37.38% 3,515,949 37.89%Total Revenue17,104,510$ 100.00%9,279,137$ 100.00%Source : City of Renton Finance Division2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-8
TABLE 6PRINCIPAL RATEPAYERSPage 2 of 3SURFACE WATER20172008% of Total% of TotalRatepayerRevenue Rank RevenueRevenue Rank RevenueCity of Renton1,242,188$ 1 11.79%294,206$ 1 6.48%Boeing Commercial379,509 2 3.60%188,069 2 4.14%Renton School District272,790 3 2.59%101,227 4 2.23%King County229,663 4 2.18%117,941 3 2.60%WA State Dept of Transportation88,827 5 0.84%43,104 5 0.95%Kenworth Truck Company80,987 6 0.77%41,229 6 0.91%Stoneway Rock and Recycling65,179 7 0.62%33,179 7 0.73%Leisure Estates Office63,256 8 0.60%30,853 80.68%The Kroger Co50,197 9 0.48%28,342 9 0.62%CPT The Landing LLC47,276 10 0.45%Valley Medical Center25,439 10 0.56%All Other4,238,797 40.22% 2,041,590 44.94%Single Family3,781,148 35.88% 1,597,518 35.17%Total Revenue10,539,817$ 100.00%4,542,696$ 100.00%Source : City of Renton Finance Division2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-9
TABLE 6PRINCIPAL RATEPAYERSPage 3 of 3WASTEWATER2017 2008% of Total% of TotalRatepayerRevenue Rank RevenueRevenue Rank RevenueBoeing Commercial210,309$ 1 2.07%125,944$ 1 2.48%Service Linen Supply Inc81,717 2 0.80% 61,655 3 1.22%G and K Services79,444 3 0.78%‐ 11 0.00%Public Hosp Dist #1 of KC75,381 4 0.74%71,504 2 1.41%Puur WASATCH Apartments LLC71,150 5 0.70%Copper Ridge Renton LLC66,967 6 0.66%Renton Housing Authority60,209 7 0.59%Fairfield Sanctuary LLC54,465 8 0.54%CPT The Landing LLC53,294 9 0.52%City of Renton52,342 10 0.51%60,969 4 1.20%Ergis IX REO LLC36,006 8 0.71%The Arbors at Sunset44,320 5 0.87%Axis Grand Apartments42,281 6 0.83%Maplewood LLC37,962 7 0.75%Woodcliffe APTS Office27,392 10 0.54%Royal Hills Preservation27,456 9 0.54%All Other3,940,216 38.71% 2,013,261 39.68%Single Family5,432,913 53.38% 2,525,106 49.77%Total Revenue10,178,405$ 100.00%5,073,855$ 100.00%Source : City of Renton Finance Division2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-10
TABLE 7WATER UTILITY RATESLAST 10 FISCAL YEARS 1Page 1 of 32008 2009 2010 2011 2012 2013 2014 2015 2016 2017Water RatesMonthly RatesBasic Charge3/4"10.10 10.60 11.66 13.76 15.96 16.76 17.60 17.60 17.60 17.601"20.91 21.95 24.15 28.50 33.06 34.71 34.89 34.89 34.89 34.891 1/2"38.63 40.56 44.62 52.65 61.07 64.12 67.33 67.33 67.33 67.332"60.54 63.56 69.92 82.51 95.71 100.50 105.52 105.52 105.52 105.523"124.39 130.61 143.67 169.53 196.65 206.48 216.81 216.81 216.81 216.814"189.82 199.31 219.24 258.70 300.00 315.00 330.75 330.75 330.75 330.756"370.18 388.69 427.56 504.52 585.24 614.50 645.28 645.28 645.28 645.288"724.62 760.85 836.94 987.59 1,145.52 1,202.80 1,262.94 1,262.94 1,262.94 1,262.9410"1,080.10 1,134.11 1,247.52 1,472.07 1,707.60 1,792.98 1,882.63 1,882.63 1,882.63 1,882.6312"1,571.90 1,650.50 1,815.55 2,142.35 2,485.13 2,609.39 2,739.86 2,739.86 2,739.86 2,739.86Charge for Irrigation3/4"6.08 6.38 7.02 8.28 9.60 10.08 10.58 10.58 10.58 10.581"10.85 11.39 12.53 14.79 17.16 18.02 18.92 18.92 18.92 18.921 1/2"18.52 19.45 21.40 25.25 29.29 30.75 32.29 32.29 32.29 32.292"28.37 29.79 32.77 38.67 44.86 47.10 49.46 49.46 49.46 49.463"60.05 63.05 69.36 81.84 94.94 99.69 104.57 104.57 104.57 104.574"89.30 93.76 103.14 121.71 141.18 148.24 155.65 155.65 155.65 155.656"169.13 177.59 195.35 230.51 267.40 280.77 294.81 294.81 294.81 294.818"322.50 388.63 427.49 504.44 585.15 614.41 645.13 645.13 645.13 645.1310"476.93 499.73 549.70 648.65 752.43 790.05 829.55 829.55 829.55 829.5512"687.26 721.62 793.78 936.66 1,086.53 1,140.86 1,197.90 1,197.90 1,197.90 1,197.901 Data for prior years provided where available.2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-11
TABLE 7WATER UTILITY RATESLAST 10 FISCAL YEARS 1Page 2 of 32008 2009 2010 2011 2012 2013 2014 2015 2016 2017Water Rates, continuedMonthly RatesFire Meterper meter inch3.861"3.78 4.16 4.91 5.69 5.97 6.27 6.27 6.27 6.271 1/2"4.22 4.64 5.48 6.36 6.68 7.01 7.01 7.01 7.012"5.43 5.97 7.04 8.17 8.58 9.01 9.01 9.01 9.013"14.33 15.76 18.60 21.58 22.66 23.79 23.79 23.79 23.794"17.64 19.40 22.89 26.55 27.88 29.27 29.27 29.27 29.276"25.34 27.87 32.89 38.15 40.06 42.06 42.06 42.06 42.068"34.12 37.53 44.29 51.38 53.95 56.65 56.65 56.65 56.6510"44.03 48.43 57.15 66.29 69.60 73.08 73.08 73.08 73.08Useage Ratesrate/100 cf (100cf = 748 gallons)Single Family:< 500 cf/mo1.53 1.68 1.98 2.30 2.42 2.54 2.54 2.54 2.54500‐1,000 cf/mo2.05 2.26 2.67 3.09 3.24 3.41 3.41 3.41 3.41< 1,000 cf/mo2.01> 1,000 cf/mo2.14 2.59 2.85 3.36 3.90 4.10 4.30 4.30 4.30 4.30All Other Users2.01Multi‐family1.98 2.18 2.57 2.98 3.13 3.29 3.29 3.29 3.29Non‐residential2.10 2.31 2.73 3.16 3.32 3.48 3.48 3.48 3.48Private irrigation3.36 3.70 4.37 5.06 5.31 5.58 5.58 5.58 5.58City irrigation2.36 2.60 3.07 3.56 3.74 3.92 3.92 3.92 3.921 Data for prior years provided where available.2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-12
TABLE 7WATER UTILITY RATESLAST 10 FISCAL YEARS 1Page 3 of 32008 2009 2010 2011 2012 2013 2014 2015 2016 2017Surface Water RatesMonthly ratesSingle‐family7.41 7.41 7.41 10.37 11.51 12.09 12.69 13.20 13.73 14.28Commercial Minimums<= .5 acreMonthly rateLow Intensity18.34 18.34 18.34 25.68 28.50 29.93 31.42 32.68 33.99 35.35Medium Intensity26.53 26.53 26.53 37.14 41.23 43.29 45.46 47.28 49.17 51.14High Intensity34.21 34.21 34.21 47.89 53.16 55.82 58.61 60.95 63.39 65.93> .5 acreRate per acreLow Intensity36.69 36.69 36.69 51.37 57.02 59.87 62.86 65.37 67.98 70.70Medium Intensity53.04 53.04 53.04 74.26 82.42 86.54 90.87 94.50 98.28 102.21High Intensity68.41 68.41 68.41 95.77 106.31 111.63 117.21 121.90 126.78 131.85Wastewater RatesMonthly RatesSingle‐familyRenton15.55 16.17 16.82 23.88 25.08 26.33 27.65 27.65 27.65 28.76King County28.51 33.06 33.06 37.26 37.26 40.95 40.95 42.61 42.61 44.22Other UsersRentonBase charge2.35 2.44 2.54 3.61 3.79 4.05 4.25 4.25 4.25 4.42Per 100 cf1.76 1.83 1.90 2.70 2.83 2.97 3.12 3.12 3.12 3.24King CountyPer 750 cf28.51 33.06 33.06 37.26 37.26 40.95 40.95 42.61 42.61 44.221 Data for prior years provided where available.2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-13
TABLE 8GENERAL GOVERNMENT TAX REVENUE BY SOURCELAST TEN FISCAL YEARS(accrual basis of accounting) FISCAL YEAR PROPERTY TAX SALES TAX BUSINESS TAXES EXCISE TAX TOTAL TAX 200829,381,036 23,190,076 14,945,173 4,362,945 71,879,230 200932,300,319 22,065,316 14,876,496 4,923,978 74,166,109 201032,586,884 21,591,375 16,883,888 4,351,914 75,414,061 201133,309,975 22,008,777 16,870,284 4,113,705 76,302,741 201233,932,290 23,653,706 17,632,759 4,286,883 79,505,638 201332,536,533 25,541,972 16,439,502 5,838,149 80,356,156 201435,112,669 27,223,521 18,575,350 4,595,540 85,507,080 201535,418,323 29,567,506 20,561,270 5,736,582 91,283,681 201637,105,988 32,933,987 26,376,964 6,123,700 102,540,639 201724,669,058 33,381,395 30,135,189 7,193,498 95,379,140 Source : City of Renton Finance Division$0$20,000,000$40,000,000$60,000,000$80,000,000$100,000,000$120,000,0002008 2009 2010 2011 2012 2013 2014 2015 2016 2017Property TaxSales TaxBusiness TaxExcise Tax2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-14
TABLE 9PRINCIPAL PROPERTY TAX PAYERS20172008% OF TOTAL% OF TOTALTAXABLE1TAXABLE TAXABLE1TAXABLEASSESSEDASSESSED ASSESSEDASSESSEDTAXPAYERVALUE RANK VALUEVALUE RANK VALUEBoeing935,877,738$ 1 6.20%842,430,440$ 1 6.40%Puget Sound Energy‐Elec/Gas155,417,316 2 1.03% 98,478,828 3 0.75%Pan Washington LLC (CPT The Landing LLC)134,566,200 3 0.89%Paccar131,016,504 4 0.87%111,316,800 2 0.85%Port Quendall Company89,873,500 5 0.59%Axis Grand Holdings61,437,400 6 0.41%44,625,000 8 0.34%Sobrato Development Co.59,738,000 7 0.40%BRE‐FMCA LLC c/o Bre Properties56,743,000 8 0.38%40,500,000 9 0.31%Seco Development Inc54,278,000 9 0.36%Fairfield Grammery LLC49,251,000 10 0.33%Providence Health53,706,700 6 0.41%Black River JV LLC (formerly ECI Two WTC LLC)37,433,000 10 0.28%AMB Property Corp61,191,200 4 0.46%Transwestern Harvest Lakeshore55,735,200 5 0.42%Fred Meyer Stores Inc51,138,403 7 0.39%All Others13,377,840,301 88.56% 11,768,638,214 89.39%Total Assessed Valuation15,106,038,959$ 100.00% 13,165,193,785$ 100.00%Source: 1King County Department of Assessments2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-15
FISCAL YEARCOMMERCIAL PROPERTYINDUSTRIAL PROPERTY RESIDENTIAL PROPERTY LESS: EXEMPT REAL PROPERTY4PERSONAL PROPERTY3ADJUSTMENTS TO BASE2TOTAL TAXABLE ASSESSED VALUE3DIRECT TAX RATE32008 2,792,844,697 1,448,578,000 8,372,238,600 1,257,849,300 828,746,994 (2,524,881,337) 9,659,677,654 2.6242009 2,883,148,991 1,520,339,100 7,199,738,295 1,365,819,700 885,490,676 2,110,347,418 13,233,244,780 2.3692010 2,877,658,818 1,728,440,200 7,184,089,489 1,359,951,195 840,554,180 613,936,948 11,884,728,440 2.7122011 3,003,796,896 1,746,154,400 6,654,066,896 1,636,584,396 821,141,161 891,891,404 11,480,466,361 2.8322012 2,971,359,393 1,373,778,056 6,482,467,387 1,585,047,600 806,821,188 766,080,093 10,815,458,517 3.1002013 2,693,600,191 1,312,002,800 6,753,032,784 511,297,275 806,299,478 (464,916,779) 10,588,721,199 3.1002014 2,433,225,730 1,267,488,700 7,926,464,800 539,444,058 949,284,799 (704,693,058) 11,332,326,913 3.15220152,509,928,450 1,147,653,230 8,794,605,250 592,768,450 923,325,641 154,013,498 12,936,757,619 2.8332016 2,681,711,050 1,271,788,530 9,078,657,800 645,210,723 935,849,150 489,977,352 13,812,773,159 2.7102017 3,051,049,072 1,340,511,480 10,672,639,000 648,346,872 1,032,050,717 (341,864,438) 15,106,038,959 1.610Tax rate for general City operations is limited to $3.10 per $1,000 of assessed value (RCW 84.52.043). Tax rate limit may be reduced for any of the following reasons:Levy Limit; The One Percent Constitution Limit; City may levy taxes below the legal limit. For further explanation refer to Note 4 Property Taxes.TABLE 10ASSESSED VALUE OF TAXABLE PROPERTYLAST TEN FISCAL YEARSREAL PROPERTY 14Change to state law (RCW 84. 40.045 and 84.40.175) by the 2013 Legislature eliminated revaluation of government owned parcels.2Includes adjustments to the tax base for senior citizen exemptions, prior year omits, etc. 3King County Assessor Annual ReportsNote: 2008 and 2009 Adjustments to Base reflect the Benson Hill Annexation1King County Department of Assessments Data; prior year data has been updated with current method of data collection via City of Renton GIS Services.Sources:$2.62$2.37$2.71$2.83$3.10$3.10$3.15$2.83$2.71$1.611.5002.0002.5003.0003.5004.0004.5005.0005.5006.000 $‐ $2 $4 $6 $8 $10 $12 $14 $162008 2009 2010 2011 2012 2013 2014 2015 2016 2017BillionsTotal Taxable Assessed ValueDirect Tax Rate2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-16
TABLE 11PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARSDIRECT RATESOVERLAPPING RATESCITY OF RENTONCONSOLIDATED LEVYSCHOOL DISTRICTFISCAL YEAR OPERATING MILLAGE DEBT SERVICE MILLAGE TOTAL CITY MILLAGE State of Washington KING COUNTY OPERATING MILLAGE KING COUNTY DEBT SERVICE MILLAGE Port (Operating and Debt) Total Consolidated Levy(State, County & Port) SPECIAL DISTRICTS1 OPERATING MILLAGE DEBT SERVICE MILLAGE BUILDING FUND MILLAGE TOTAL SCHOOL MILLAGE TOTAL OVERLAPPING MILLAGETOTAL DIRECT AND OVERLAPPING MILLAGE2008 2.57052 0.05330 2.62382 2.13233 1.04278 0.16492 0.22359 3.56362 0.96354 1.26082 1.36572 ‐ 2.62654 7.15370 9.77752 2009 2.36923 ‐ 2.36923 1.96268 0.95271 0.14501 0.19700 3.25740 0.88686 1.42951 1.71049 0.30056 3.44056 7.58482 9.95405 2010 2.71184 ‐ 2.71184 2.22253 1.16171 0.12328 0.21597 3.72349 0.94152 1.70401 1.69983 0.33997 3.74381 8.40882 11.12066 2011 2.83207 ‐ 2.83207 2.27990 1.14534 0.19282 0.22366 3.84172 1.47089 1.86118 1.85585 0.35198 4.06901 9.38162 12.21369 2012 3.10000 ‐ 3.10000 2.42266 1.21477 0.20111 0.22982 4.06836 1.41988 2.08341 2.18222 0.37368 4.63931 10.12755 13.22755 2013 3.10000 ‐ 3.10000 2.56720 1.34165 0.19885 0.23324 4.34094 1.50331 2.49448 2.30546 0.55769 5.35763 11.20188 14.30188 2014 3.15158 ‐ 3.15158 2.47044 1.32983 0.18622 0.21533 4.20182 1.55393 2.44841 2.43218 0.52436 5.40495 11.16070 14.31228 2015 2.83283 ‐ 2.83283 2.28514 1.19644 0.14878 0.18885 3.81921 1.44353 2.41546 1.71412 0.46343 4.59301 9.85575 12.68858 2016 2.70956 ‐ 2.70956 2.16898 1.32977 0.15051 0.16954 3.81880 1.38929 2.35107 2.57140 0.43248 5.35495 10.56304 13.27260 2017 1.60954 ‐ 1.60954 2.03205 1.24349 0.13945 0.15334 3.56833 2.58252 2.30780 1.33954 1.31244 4.95978 11.11063 12.72017 Source: King County Codes and Levies1 Special Districts include Emergency Medical Services, Hospital districts, Library, Flood Zones, Fire Districts, and Other.9.77752 9.95405 11.12066 12.21369 13.22755 14.30188 14.31228 12.68858 13.27260 12.72017 ‐ 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.02008 2009 2010 2011 2012 2013 2014 2015 2016 2017CityConsolidated LevySpecial DistrictsSchool DistrictsTotal direct and overlapping2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-17
TABLE 12PROPERTY TAX LEVIES AND COLLECTIONSLAST TEN FISCAL YEARSTOTAL TAX COLLECTED WITHIN THE 1COLLECTIONS 1,2 TOTAL COLLECTIONS TO FISCAL LEVY FOR FISCAL YEAR OF THE LEVY IN SUBSEQUENT DATE 2YEAR FISCAL YEAR AMOUNT % OF LEVY YEARSAMOUNT % OF LEVY200827,188,522 26,722,301 98.3%466,131 27,188,432 100.0%200931,058,589 30,249,856 97.4%808,502 31,058,358 100.0%201032,057,010 31,283,546 97.6%771,928 32,055,474 100.0%201132,166,084 31,538,875 98.1%621,842 32,160,717 100.0%201233,333,628 32,904,890 98.7%433,405 33,338,294 100.0%201332,606,827 32,170,706 98.1%446,464 32,617,170 100.0%201435,524,457 35,054,493 98.7%449,759 35,054,493 98.7%201536,477,361 36,026,892 98.8%394,406 36,026,892 98.8%201637,269,743 36,862,540 98.9%322,225 36,862,540 98.9%201724,199,991 23,756,999 98.2%198,769 23,756,999 98.2%Sources: 622,878 1 Annual Tax Receivable Summary from King County2 Includes Collections and Levy Changes in subsequent years95%96%97%98%99%100% $‐ $5 $10 $15 $20 $25 $30 $35 $402008 2009 2010 2011 2012 2013 2014 2015 2016 2017MillionsTax LeviedCollected in Year Levied2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-18
TABLE 13SALES TAX COLLECTIONS BY SECTORLAST TEN FISCAL YEARS2008 2009 2010 2011 2012 2013 2014 2015 2016 2017RETAIL TRADE SECTORFurniture 1,199,045$ 1,065,605$ 1,143,289$ 1,186,244$ 1,320,786$ 1,461,950$ 1,552,003$ 1,670,492$ 1,727,458$ 1,820,848$ Electronics and Appliances1,137,586 1,036,569 1,086,334 988,355 962,595 742,150 785,507 815,051 832,583 815,267 General Merchandise1,462,858 1,573,716 1,646,351 1,652,442 1,722,213 1,707,695 1,733,558 1,826,260 1,856,109 1,859,900 Misc Retail Trade756,662 625,320 558,709 594,226 614,814 661,905 653,772 635,438 545,156 598,632 Others1,574,482 1,538,600 1,563,101 1,649,231 1,862,533 2,003,901 1,992,620 2,166,015 2,334,225 2,616,887 Subtotal Retail 6,130,633 5,839,810 5,997,784 6,070,498 6,482,942 6,577,601 6,717,460 7,113,256 7,295,531 7,711,534 OTHER SECTORSConstruction 4,725,533 2,991,530 2,218,377 1,576,127 1,844,545 2,694,710 2,316,188 3,019,042 4,682,830 4,246,126 Manufacturing483,388 549,265 410,896 452,778 551,622 552,474 446,615 448,230 514,526 460,241 Transportation494,866 567,401 400,848 366,556 620,297 492,237 770,889 1,592,590 1,295,994 1,090,118 Wholesale1,131,445 915,885 941,315 1,148,660 1,169,432 1,174,007 1,157,750 1,198,961 1,435,378 1,405,676 Automotive 3,575,928 3,215,641 3,035,251 3,179,418 3,361,196 3,731,241 4,104,744 4,597,151 4,809,026 4,775,263 Services3,939,201 3,616,076 3,694,342 3,960,151 4,221,446 4,362,344 4,576,039 5,145,373 5,635,186 5,884,292 Miscellaneous402,360 466,785 533,667 721,805 441,252 553,106 590,685 566,166 684,762 758,384 Subtotal ‐ Other Sectors 14,752,721 12,322,583 11,234,696 11,405,496 12,209,789 13,560,119 13,962,910 16,567,513 19,057,702 18,620,100 Total Sales Tax20,883,354$ 18,162,393$ 17,232,479$ 17,475,994$ 18,692,731$ 20,137,720$ 20,680,370$ 23,680,769$ 26,353,233$ 26,331,634$ Source : City of Renton Finance DivisionIn 2007, the State of Washington changed industry classification from the Standard Industry Classification (SIC) to the North American Industry Classification System (NAICS). This change reclassified various other retail activities to the expanded service classification. $‐ $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,0002008 2009 2010 2011 2012 2013 2014 2015 2016 2017RetailConstructionManufacturingTransportationWholesaleAutomotiveServicesMiscellaneous2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-19
TABLE 14
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
GOVERNMENTAL ACTIVITIES BUSINESS‐TYPE ACTIVITIES
FISCAL
YEAR
GENERAL
OBLIGATION
BONDS
SPECIAL
ASSESSMENT
BONDS
OTHER
GENERAL
OBLIGATION2
REVENUE
BONDS
OTHER LONG
TERM DEBT
TOTAL PRIMARY
GOVERNMENT
DEBT
PERCENTAGE
OF PERSONAL
INCOME1
DEBT PER
CAPITA
% of Actual
Taxable Value
of Property
2008 41,938,000 ‐ ‐ 43,310,000 8,968,894 94,216,894 8.06% 1,196 1.04%
2009 39,039,834 ‐ 38,973,547 41,110,000 8,284,962 127,408,343 11.99% 1,523 0.98%
2010 36,990,612 ‐ 38,511,875 36,955,000 7,357,546 119,815,033 11.14% 1,318 0.96%
2011 52,993,407 ‐ 38,053,639 34,926,581 6,443,218 132,416,845 11.44% 1,430 1.01%
2012 46,743,675 ‐ 36,891,722 32,492,802 5,538,929 121,667,128 9.27% 1,296 1.15%
2013 46,103,944 ‐ 35,692,283 31,208,819 4,660,282 117,665,328 8.70% 1,232 1.12%
2014 41,882,832 ‐ 34,639,998 28,677,301 3,951,670 109,151,801 7.30% 1,124 1.11%
2015 37,399,331 ‐ 33,340,737 27,175,783 3,248,163 101,164,014 6.34%1,027 0.96%
2016 32,867,371 ‐ 32,220,614 25,547,511 2,639,258 93,274,754 5.62% 921 0.67%
2017 29,093,663 ‐ 31,052,617 24,919,359 2,244,083 87,309,722 N/A 850 0.58%
Source : City of Renton Finance Division
1 The percentage of Personal Income column is based on personal income of King County. (See Table 20). Renton data is not available.
2 Other GO debt includes debt issued by related entities that are backed by the City's full faith and credit as well as intergovernmental loans and capital leases.
Prior years have been updated to reflect the Capital Lease agreement that started in 2014.
$‐
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
General Obligation (Governmental)Other Long Term (Governmental)Revenue (Business‐Type)Other Long Term (Business‐Type)
2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-20
GENERAL RATIO OF NET NET
OBLIGATION LESS DEBT NET BONDED DEBT BONDED
FISCAL ASSESSED BONDED SERVICE BONDED TO ASSESSED DEBT PER
YEAR POPULATION1 VALUE2 DEBT FUNDS DEBT VALUE CAPITA
2008 78,780 9,659,677,654 94,216,894 1,270,936 92,945,958 0.96% 1,180
2009 83,650 13,233,244,780 127,408,343 367,652 127,040,691 0.96% 1,519
2010 90,927 11,884,728,440 119,815,033 1,009,555 118,805,478 1.00% 1,307
2011 92,590 11,480,466,361 132,416,845 1,032,360 131,384,485 1.14% 1,419
2012 93,910 10,815,458,517 121,667,128 1,160,000 120,507,128 1.11% 1,283
2013 95,540 10,588,721,199 117,665,328 1,279,231 116,386,097 1.10% 1,218
2014 97,130 11,332,326,913 109,151,801 1,639,891 107,511,910 0.95% 1,107
2015 98,470 12,936,757,619 101,164,014 2,368,177 98,795,837 0.76% 1,003
2016 101,300 13,812,773,159 93,274,754 2,428,018 90,846,736 0.66% 897
2017 102,700 15,106,038,959 87,309,722 2,359,933 84,949,789 0.56%827
Sources:
1 Washington State Office of Financial Management ‐ prior year data updated to reflect actuals where adjusted
TABLE 15
RATIOS OF GENERAL BONDED DEBT OUTSTANDING TO ASSESSED VALUE
LAST TEN FISCAL YEARS
2King County Assessor Annual Reports
0
200
400
600
800
1,000
1,200
1,400
1,600
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Debt/Assessed Value Debt/Population
2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-21
TABLE 16LEGAL DEBT MARGIN INFORMATIONLAST TEN FISCAL YEARS2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LEGAL DEBT MARGIN CALCULATION Taxable Assessed value 9,659,677,654$ 13,233,244,780$ 11,884,728,440$ 11,480,466,361$ 10,815,458,517$ 10,588,721,199$ 11,332,326,913$ 12,936,757,619$ 13,812,773,159$ 15,106,038,959$ Total Taxable Assessed Value 9,659,677,654 13,233,244,780 11,884,728,440 11,480,466,361 10,815,458,517 10,588,721,199 11,332,326,913 12,936,757,619 13,812,773,159 15,106,038,959 Debt limit 1.5% of General purpose limit, non‐voted 144,895,165 198,498,672 178,270,927 172,206,995 162,231,878 158,830,818 169,984,904 194,051,364 207,191,597 226,590,584 1.0% General purpose limit, voted 96,596,777 132,332,448 118,847,284 114,804,664 108,154,585 105,887,212 113,323,269 129,367,576 138,127,732 151,060,390 2.5% General purpose combined limit 241,491,941 330,831,120 297,118,211 287,011,659 270,386,463 264,718,030 283,308,173 323,418,940 345,319,329 377,650,974 2.5% Utility purpose limit, voted 241,491,941 330,831,120 297,118,211 287,011,659 270,386,463 264,718,030 283,308,173 323,418,940 345,319,329 377,650,974 2.5% Open space, park facilities, voted 241,491,941 330,831,120 297,118,211 287,011,659 270,386,463 264,718,030 283,308,173 323,418,940 345,319,329 377,650,974 Total debt limit 724,475,824 992,493,359 891,354,633 861,034,977 811,159,389 794,154,090 849,924,518 970,256,821 1,035,957,987 1,132,952,922 Debt applicable to limitGeneral obligation bonds41,938,000 39,039,834 36,990,612 52,993,407 46,743,675 46,103,944 41,882,832 37,399,331 32,867,371 29,093,663 Other long term debt‐ 38,973,547 38,511,875 38,053,639 36,891,722 35,692,283 34,639,998 33,340,737 32,220,614 31,052,617 Total Debt 41,938,000 78,013,381 75,502,487 91,047,046 83,635,397 81,796,227 76,522,830 70,740,068 65,087,985 60,146,280 Less: Amount set aside for repayment of general obligation debt and contracts payable(1,270,936) (367,652) (1,009,555) (1,032,360) (1,160,000) (1,279,231) (1,639,891) (2,368,177) ‐ ‐ Total net debt applicable to limit 40,667,064 77,645,729 74,492,932 90,014,686 82,475,397 80,516,996 74,882,939 68,371,891 65,087,985 60,146,280 Legal debt margin 683,808,760$ 914,847,630$ 816,861,701$ 771,020,291$ 728,683,991$ 713,637,094$ 775,041,580$ 901,884,931$ 970,870,002$ 1,072,806,642$ Percentage of net debt to debt limit5.61%7.82%8.36%10.45%10.17%10.14%8.81%7.05%6.28%5.31%Source : City of Renton Finance DivisionState law provides that debt cannot be incurred in excess of the following percentages of the value of the taxable property of the City: 1.5 percent without a vote of the people; 2.5 percent with a vote of the people5.0 percent with a vote of the people, provided the indebtedness in excess of 2.5 percent is for utilities; and 7.5 percent with a vote of the people provided the indebtedness in excess of 5.0 percent is for open space development and parks facilities2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-22
NET % OF GO BOND2
GENERAL 1 LESS:GENERAL DEBT TO
FISCAL OBLIGATION AMOUNTS
1 OBLIGATION ASSESSED
2 ASSESSED PER
3
YEAR DEBT AVAILABLE DEBT VALUE VALUE CAPITA
2008 41,938,000 1,270,936 40,667,064 9,659,677,654 0.42% 516
2009 78,013,381 367,652 77,645,729 13,233,244,780 0.59% 928
2010 75,502,487 1,009,555 74,492,932 11,884,728,440 0.63% 819
2011 91,047,046 1,032,360 90,014,686 11,480,466,361 0.78% 972
2012 83,635,397 1,160,000 82,475,397 10,815,458,517 0.76% 878
2013 81,796,227 1,279,231 80,516,996 10,588,721,199 0.76% 843
2014 76,522,830 1,639,891 74,882,939 11,332,326,913 0.66% 771
2015 70,740,068 2,368,177 68,371,891 12,936,757,619 0.53% 694
2016 65,087,985 ‐ 65,087,985 13,812,773,159 0.47% 643
2017 60,146,280 ‐ 60,146,280 15,106,038,959 0.40% 586
Source:
1 City of Renton Finance Division
2 King County Department of Assessments
3 Population Data can be found in Table 20
TABLE 17
PER CAPITA GENERAL OBLIGATION DEBT
LAST TEN FISCAL YEARS
$‐
200
400
600
800
1,000
1,200
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-23
Utilities
GOVERNMENTAL UNIT
Debt
Outstanding1
Estimated Percent
Applicable2
Estimated Share of
overlapping debt
City of Renton Direct Debt 60,146,280$ 100% 60,146,280$
City of Renton Overlapping Debt 4
King County 3 740,158,000$ 3.20% 23,685,056$
Port of Seattle 388,360,000 3.20% 12,427,520
Renton School District #403 259,100,000 69.37%179,737,670
Issaquah School District #411 583,025,000 2.25%13,118,063
Kent School District #415 177,465,482 1.58%2,798,986
Fire District 10‐1 3,880,000 0.19%7,492
Fire District 40‐1 3,010,000 42.56%1,280,978
King County Library 89,230,000 1.07%954,761
City of Renton Overlapping Debt 234,010,525$
Total Direct and Overlapping Debt 294,156,805$
Sources:
2 King County Department of Assessments
TABLE 18
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
1 King County Department of Executive Services
⁴ Overlapping percentages are determined by checking within the levy codes of the reporting district to see which taxing districts overlap
with that reporting district. For example, within levy code 2100, the Renton School District and the King County Library district overlap with
the city and both have debt. Since they both have debt and they overlap with the City, those two districts are reported and the value within
that levy code is reported as overlapping with the school and library districts.
3 King County's gross outstanding debt excludes available cash in debt service funds, proprietary‐type debt, debt financed from component
unit, credit enhanced program.
Renton
20%
King County
8%
Schools
67%
Port of Seattle
4%
Others
1%
2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-24
TABLE 19
PLEDGED‐REVENUE COVERAGE
LAST TEN FISCAL YEARS
Ratio
Fiscal
Year Revenue
2
Expenses without
Taxes/
Depreciation
Net Revenue
Available for
Debt Service Principal Interest Coverage
1
2008 30,186,705 21,195,370 8,991,335 1,810,000 1,803,687 2.49
2009 32,853,359 24,341,586 8,511,773 1,890,000 1,758,589 2.33
2010 33,885,499 25,546,607 8,338,892 1,955,000 1,689,455 2.29
2011 40,538,269 25,424,551 15,113,718 2,030,000 1,716,503 4.03
2012 44,534,579 27,225,957 17,308,622 2,115,000 1,529,260 4.75
2013 45,849,249 27,538,433 18,310,816 1,650,000 1,262,177 6.29
2014 48,247,542 29,685,885 18,561,657 2,545,000 1,212,328 4.94
2015 50,143,096 30,737,021 19,406,075 1,515,000 1,101,575 7.42
2016 50,614,218 39,147,449 11,466,769 1,740,000 868,982 4.40
2017 53,140,049 35,056,056 18,083,993 1,770,000 655,997 7.45
Source: City of Renton Finance Division
2 Revenue includes interest revenue, and excludes charges for services and interfund taxes.
1 Bond financing requirements are that the average annual coverage is at least 1.25 times the annual debt service for Water and Sewer revenue
bonds.
WATER AND SEWER REVENUE BONDS:
Revenue Debt Service
2.49
2.33
2.29 4.03 4.75
6.29
4.94
7.42 4.40 7.45
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Water and Sewer Net Revenue available for debt service Debt Service Coverage
2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-25
PER CAPITA
PERSONAL PERSONAL SCHOOL
POPULATION 1 INCOME 2 INCOME 3 ENROLLMENT 5 RATE 6
FISCAL MEDIAN RENTON SCHOOL
YEAR KING COUNTY RENTON KING COUNTY KING COUNTY AGE 4 DISTRICT KING COUNTY RENTON
2008 1,875,020 78,780 116,867,546,000 62,329 37.00 13,836 3.9% 4.1%
2009 1,912,012 83,650 106,247,964,000 55,569 37.08 13,977 8.0% 8.6%
2010 1,937,786 90,927 107,552,067,000 55,503 37.24 13,600 9.1% 7.7%
2011 1,972,444 92,590 115,758,427,000 58,688 37.40 14,440 8.0% 6.8%
2012 2,008,763 93,910 131,263,349,000 65,345 37.72 14,590 6.4% 6.0%
2013 2,045,874 95,540 135,176,058,000 66,073 37.70 14,783 5.0% 4.7%
2014 2,078,886 97,130 149,434,812,000 71,882 37.74 15,080 4.6% 4.2%
2015 2,114,256 98,470 159,665,109,000 75,518 37.26 15,241 4.6% 4.3%
2016 2,149,970 101,300 166,006,277,000 77,213 37.20 15,319 3.4% 3.2%
2017 2,153,700 102,700 * * 35.00 15,334 3.6% 3.8%
Sources:
1 Washington State Office of Financial Management ‐ prior year data updated to reflect actuals where adjusted
2 U.S. Bureau of Economic Analysis. Data shown is for King County. Specific data for the City of Renton is not available.
3 U.S. Bureau of Economic Analysis. Data shown is for King County. Specific data for the City of Renton is not available.
4 Washington State Office of Financial Management
5 Enrollment is based on entire Renton School District, which includes schools located outside city boundaries but excludes schools of Kent
and Issaquah school districts located within Renton city limits.
6 US Bureau of Labor Statistics; annual rates, not seasonally adjusted, 2010‐2014 are provisional and subject to change
* Data not available at time of publication
TABLE 20
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
UNEMPLOYMENT
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
King County Unemployment Rate City of Renton Unemployment Rate
2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-26
EMPLOYER EMPLOYEES RANK CITY EMPLOYEES RANK CITY
BOEING COMPANY 16,531 1 26.74% 12,829 1 28.80%
VALLEY MEDICAL CENTER 3,111 2 5.03 1,331 4 2.99
RENTON SCHOOL DISTRICT 1,518 3 2.45 1,426 2 3.20
DOT ‐ FEDERAL AVIATION ADMINISTRATION 1,429 4 2.31 1,400 3 3.14
PROVIDENCE WA REGIONAL SERVICES 1,393 5 2.25 734 8
PACCAR INC 1,127 6 1.82 1,202 5 ‐‐‐
KAISER PERMANENTE (FORMERLY GROUP HEALTH) 918 7 1.49 ‐‐
CITY OF RENTON 713 8 1.15 760 7
KING COUNTY 582 9 ‐‐‐886 6 1.99
WIZARDS OF THE COAST 500 10 0.81 472 10 ‐‐‐
ER SOLUTIONS N/A ‐ ‐‐‐531 9 1.19
Total Principal Employers 27,823 45.00%21,571 48.42%
Total All Other Employers 33,999 55.00%22,979 51.58%
Total Employees working within Renton 61,822 100.00%44,550 100.00%
Sources:
Employee and Employer Data, Business License Data, City of Renton (2008, 2017)
Total Employees Working in Renton, PSRC (2008, 2017)
TABLE 21
PRINCIPAL EMPLOYERS
2017 2008
2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-27
TABLE 22
FULL TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
20081 20092 20103 2011 2012
4 2013 2014 2015 2016
5 2017
FUNCTION
General Government 155.6 163.8 143.3 143.5 147.3 135.4 135.4 139.4 151.0 156.0
Public Safety
Police
Commissioned Officers 124.0 121.0 123.0 123.0 123.0 123.0 121.5 119.0 124.0 129.0
Non‐Commissioned Officers 51.2 46.4 44.4 28.4 28.4 28.4 28.4 29.4 30.4 32.9
Fire
Commissioned Officers 118.0 137.0 136.0 145.0 145.0 145.0 140.0 145.0 0.0 0.0
Non‐Commissioned Officers 17.0 18.0 16.0 16.0 16.0 16.0 16.0 16.0 0.0 0.0
Public Works
Administration 4.0 3.5 3.0 3.0 3.0 3.0 3.0 3.0 2.0 2.0
Transportation Systems 41.0 37.0 33.0 33.0 33.0 33.0 31.0 31.0 33.5 38.5
Utility Systems 36.7 37.7 29.5 29.5 25.5 25.5 23.5 23.5 25.5 27.5
Maintenance Services 88.0 83.0 78.0 78.0 80.0 80.0 80.0 82.0 82.0 87.0
Culture and Recreation
Parks/Recreation/Facilities/Human Svs 89.5 86.3 81.8 82.8 83.6 83.6 80.0 80.0 83.0 83.0
Library 14.0 15.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Museum 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Golf Course 10.0 9.5 9.5 9.5 9.5 9.5 9.5 9.5 9.5 10.5
Total 750.0 759.2 698.5 692.7 695.2 683.4 669.3 678.8 541.9 567.4
Source: City of Renton Finance Division
1 In 2008, Development Services moved from Public Works to Community and Economic Develoment which is listed under General Government.
2 In 2009, increase in Administrative, Judicial & Legal Services includes moving Legal Services in‐house and creation of a Communications Division which was
a reorganization of staffing from the Finance and Information Services Department and the Mayors Office
3 Operations of the Renton libraries transferred to King County Library System (KCLS) in 2010 as a result of voter‐approved annexation
4 Farmers's Market Program was moved from Community and Economic Department to Community Services Department in 2012.
5 City of Renton Fire and ES Services employees transferred to the Renton Regional Fire Authority on July 1, 2016.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-28
TABLE 23
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
FUNCTION
Public Safety
Police
Physical arrests 3,580 3,748 3,464 2,810 1,968 1,725 1,515 1,653 1,492 2,099
Parking violations 5,117 6,795 4,748 4,757 4,855 4,799 4,049 4,464 4,664 4,992
Traffic violations 10,705 14,220 13,829 8,805 7,943 8,388 5,925 4,828 5,152 4,576
Photo Enorcement Violations 1 13,342 27,509 21,157 21,301 22,036 15,733 21,015 25,562 23,208 25,257
Infractions non traffic 268 314 240 446 16 210 149 125 53 43
Criminal non trafic 1,332 1,739 1,623 1,687 1,279 1,346 1,522 1,466 1,351 1,430
Fire2
Number of calls answered 12,402 12,840 13,045 12,752 13,667 13,848 14,337 14,945 0 ‐
Inspections 2,772 2,968 2,620 2,300 1,807 689 997 2,517 0 ‐
Transportation
Street resurfacing (miles)2.59 3.08 2.65 2.07 2.19 0.84 2.82 1.67 0.44 2.78
Aircraft Operations 100,928 83,269 80,679 80,005 93,406 93,911 100,544 112,335 118,568 131,702
Physical/Economic Environment
Building Permits Received 3,856 3,450 3,646 3,642 3,912 4,237 4,287 4,898 4,830 4,404
Building Permits Issued 3,749 3,336 3,562 3,555 3,765 4,038 4,204 4,691 4,661 4,092
Public Works Permits Received 1,547 1,254 1,182 1,334 1,337 1,488 1,526 1,472 1,468 1,270
Public Works Permits Issued 1,457 1,205 1,162 1,245 1,328 1,411 1,493 1,359 1,437 1,093
Solid Waste Utility
Recyclables collected (tons/yr)5,395 9,653 9,836 12,565 13,509 13,616 13,993 15,218 17,846 12,331
Culture and Recreation
Athletic field attendance 93,000 93,000 93,000 93,000 94,000 94,000 94,000 93,000 94,000 56,000
Community Center admissions 3 155,000 150,000 150,000 150,000 155,000 155,000 172,302 170,000 145,000 14,242
Rounds of Golf 61,100 60,300 55,450 54,350 58,680 56,180 55,600 56,775 51,546 47,462
2 The Renton Regional Fire Authority formed July 1, 2016 replaceing the City of Renton Fire Department.
Source: City of Renton
1 Photo Enforcement began in 2008.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-29
TABLE 24UTILITY SYSTEMS SUPPLEMENTAL OPERATING INFORMATIONLAST TEN FISCAL YEARS 12008 2009 2010 2011 2012 2013 2014 2015 2016 2017City Population78,780 83,650 90,927 92,590 93,910 95,540 97,130 98,470 101,300102,700Water SystemService Area Population‐‐‐‐‐‐‐‐‐‐62,100 60,000 67,125 67,000 68,666Number of Connections:Single Family13,440 13,500 13,59413,739 13,876 13,942 13,76414,083 14,162 14,190Multi‐Family, Commercial, Industrial2,542 2,555 2,559 2,591 2,542 2,542 2,715 2,541 2,578 2,557Irrigation697704714721733734726738756755Fire Service544576604624645652652663682682Other 2866655536059116748167Total Connections17,309 17,401 17,526 17,728 17,856 17,929 17,973 18,099 18,259 18,251Water Production/Consumption (in hundreds of cubic feet ‐ ccf)(in hundreds of cubic feet ‐ ccf)Purchased00 27,282 88,645 51,087 43,815 47,77454,951 43,009 56,667Production 3,614,732 3,701,0403,293,5863,244,6283,172,169 3,197,643 3,306,1943,512,789 3,410,6483,490,563Consumption 2,934,273 3,069,0202,827,935 2,899,443 2,955,531 2,937,989 2,938,282 3,094,1143,028,1743,146,552Non‐revenue 680,459 632,020492,933 433,830267,725 303,469 415,686473,626425,483 400,678Consumption (thousands of gallons)Average Daily7,388 7,585 6,750 6,650 6,483 6,553 6,775 7,199 6,971 7,154Peak Daily12,739 14,81412,826 12,476 11,445 12,361 12,411 13,590 12,751 13,098Sewer SystemService Area Population‐‐‐‐‐‐‐‐‐‐‐‐80,780 81,759 83,850 86,982Number of Connections:Single Family13,90414,121 14,452 14,675 14,953 15,183 15,15415,173 15,38415,507Multi‐Family, Commercial, Industrial, Other2,446 2,453 2,451 2,457 2,453 2,450 2,708 2,713 2,704 2,714Total Connections16,350 16,57416,903 17,132 17,406 17,633 17,862 17,886 18,088 18,221Storm Drainages SystemService Area Population‐‐‐‐‐‐‐‐‐‐‐‐97,130 98,470 101,300102,700Number of Connections:Single Family19,900 20,329 20,747 20,980 21,521 21,756 21,893 22,125 22,352 22,455Multi‐Family, Commercial, Industrial, Other1,799 1,873 1,813 1,847 1,761 1,738 1,728 1,732 1,744 1,750Total Connections21,699 22,202 22,560 22,827 23,282 23,49423,621 23,857 24,096 24,205Solid WasteService Area Population‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐Number of Connections:Single Family13,091 16,385 16,350 16,688 16,927 16,958 17,000 17,15417,129 16,926Multi‐Family, Commercial, Industrial, Other1,483 1,665 1,612 1,581 1,569 1,535 1,533 1,589 1,586 1,554Total Connections14,57418,050 17,962 18,269 18,496 18,493 18,533 18,743 18,715 18,4801 Data for prior years provided where available.2 Includes wholesale water provided to the Skyway Water and Sewer District througha single metered connection.2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-30
TABLE 25
CAPITAL ASSETS STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
FUNCTION
Public safety
Police Stations 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Police Patrol Districts 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0
Fire stations1 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 ‐‐
Transportation
Street (miles)263.8 263.8 264.5 266.1 266.1 266.1 294.0 304.1 315.5 311.0
Streetlights 3,726 3,864 3,935 4,015 4,172 4,182 4,302 4,342 4,720 4,878
Culture and recreation
Parks acreage 1,181.0 1,183.0 1,183.0 1,205.8 1,210.6 1,213.8 1,227.0 1,239.5 1,240.4 1,245.5
Parks 29.0 30.0 30.0 32.03 32 32.0 32.0 32.0 32.0 32.0
Swimming pools 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Tennis courts 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0
Community centers 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Waterworks Utility
Water mains (miles) 304.0 305.0 305.0 305.0 306.0 308.0 304.6 307.5 311.0 313.0
Fire hydrants 3,602 3,624 3,651 3,639 3,655 3,670 3,697 3,740 3,769 3,777
Sanitary sewers (miles) 215.7 216.4 217.7 219.3 219.9 223.4 225.9 231.2 232.1 233.9
Storm sewers (miles) 267.5 273.8 274.9 276.1 278.5 282.0 267.7 265.6 276.6 278.0
1 City of Renton Fire and ES Services employees transferred to the Renton Regional Fire Authority on July 1, 2016.
Source: City of Renton Departments
2 Includes Natural Area acreage, and developed/undeveloped park acreage for Neighborhood Parks, Community Parks, Regional Parks, Special Use Parks
and Corridors.
3 Developed Neighborhood, Community, Regional and Special Use Parks only. Two new parks were part of Benson Hill Annexation not previously
accounted for – Parkwood South Div #3 and SE 186th Place Properties.
2017 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-31