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Home My WebLink About201901, Januaryh:\finance\financial reporting\monthly reports\2019 reports\cover 1 19.docx ADMINISTRATIVE SERVICES M E M O R A N D U M DATE: TO: CC: FROM: STAFF CONTACT: SUBJECT: March 4, 2019 Don Persson, Council President Members of Renton City Council Denis Law, Mayor Bob Harrison, Chief Administrative Officer Jan Hawn, ASD Administrator Marc Gordon, Sr. Finance Analyst January 2019 Financial Status Report At the end of January, general governmental revenues show $324K or 4.4% over budget. Revenue source(s) that are higher than expected are: sales tax ($88K); criminal justice sales tax ($43K); business & occupation taxes ($189K); interest & other earnings ($55K); fines and penalties ($51K); real estate excise tax ($513K); business licensing ($92K). On the down side, the revenue source(s) that are underperforming the year to date budget are: utility taxes ($258K); gambling taxes ($73K); public safety ($32K); building permits & development service fees ($71K); culture and recreation ($101K); franchise fees ($338K); and other financing ($86K). General government expenditures showed an unfavorable variance of $1K or 0.0%. See page 10 of report for further expenditure over-spent/savings explanations. The attached report provides more detailed discussion of each revenue source and our updated projections for the year. Please do not hesitate to contact me at x6937 should you have any questions or any suggestions about the report. Ed Prince, Council President Members of Renton City Council Page 2 of 2 March 1, 2019 h:\finance\financial reporting\monthly reports\2019 reports\cover 1 19.docx This page is intentionally left blank Page | 1 Preliminary as of 03/01/2019 General Governmental Funds $% Beginning Fund Balance 26,563,785$ 26,563,785$ 33,284,838$ 33,284,838$ 32,466,212$ 32,466,212$ 42,803,217$ 10,337,005 31.8% OPERATING REVENUES Property Tax 24,356,562 55,429 16,068,337 (12,745) 20,885,254 22,053 39,879 17,826 80.8% Sales Tax 26,331,634 2,092,821 28,428,635 2,217,949 27,684,069 2,172,405 2,260,685 88,280 4.1% Sales Tax - Annexation Credit 3,123,230 247,737 1,619,553 263,143 - - - - 0.0% Criminal Justice Sales Tax 2,808,564 213,532 3,091,020 231,017 2,886,744 217,524 261,015 43,491 20.0% Natural Gas Use Tax 180,456 15,569 141,408 14,578 180,000 18,556 28,002 9,445 50.9% Admission Tax 223,157 60,741 225,466 56,598 250,000 65,388 8 (65,380) -100.0% Franchise Fees 1,562,100 380,870 1,508,915 371,458 1,526,500 373,958 36,388 (337,569) -90.3% Electricity Tax 5,721,366 561,650 5,592,795 557,035 5,559,113 549,656 499,371 (50,285) -9.1% Natural Gas Utility Tax 1,630,375 222,337 1,446,693 216,102 1,400,000 199,481 163,947 (35,533) -17.8% Garbage/Solid Waste 627,254 52,200 743,003 54,608 680,000 53,004 5,585 (47,419) -89.5% TV Cable 1,651,405 140,113 1,525,625 142,274 1,678,736 149,213 - (149,213) -100.0% Telephone 866,519 109,120 830,975 63,229 692,674 70,328 50,005 (20,323) -28.9% Cellular Phone 1,481,298 224,795 1,159,489 79,178 1,551,630 178,603 35,135 (143,469) -80.3% City Utilities 4,840,530 372,938 4,925,046 268,383 4,500,000 295,522 474,601 179,079 60.6% Utility Tax Audit - - - - - - - - 0.0% Leasehold Excise Tax 173,396 - 189,427 - 179,000 - - - 0.0% Gambling Excise Tax 2,695,368 220,536 2,831,045 210,929 2,000,000 156,146 83,278 (72,869) -46.7% Real Estate Excise Tax 1,778,456 1,028,456 4,235,440 840,316 4,000,000 235,792 748,462 512,671 217.4% Less: CIP REET (1,028,456) (1,028,456) (840,316) (840,316) (1,373,000) (235,792) (266,705) (30,913) 13.1% EMS Levy - - - - - - - - 0.0% B&O Taxes 9,633,034 432,319 10,689,216 1,301,574 6,000,000 730,591 919,391 188,800 25.8% Less: CIP B&O Taxes (2,473,974) - (1,379,314) - - - - - 0.0% Business License Fees 1,480,730 229,270 1,037,650 574,453 695,455 189,046 281,106 92,060 48.7% Less: CIP Business License Fees (614,796) (136,952) (356,629) (246,261) - - - - 0.0% Animal Licenses and Spec Events Permits 140,391 7,190 119,901 9,592 94,174 8,004 9,188 1,184 14.8% Building Permits & Development Svc Fees 4,907,983 399,548 4,650,227 314,626 5,223,637 388,426 317,466 (70,960) -18.3% Intergovt'l (Grants, State Shared, etc)4,285,806 391,146 4,232,288 370,339 3,823,847 368,883 404,092 35,210 9.5% Fire District 25 and 40 Contracts 341,939 - 357,660 - 372,059 - - - 0.0% Public Safety 837,728 64,424 1,208,422 224,932 837,835 100,853 68,958 (31,896) -31.6% Culture and Recreation 1,722,323 152,350 1,509,375 138,388 1,829,714 164,609 63,819 (100,790) -61.2% Interfund/Interdept-Services 3,916,334 330,774 3,900,407 341,804 4,431,371 369,281 355,266 (14,015) -3.8% Fines and Penalties 822,450 6,981 810,152 4,772 827,782 4,833 3,997 (836) -17.3% Photo Enforcement 2,124,399 127,976 3,463,040 136,853 3,431,405 162,639 214,193 51,554 31.7% Seizure Funds - Federal/State/Local 176,503 101,755 349,134 5,094 - - - - 0.0% Interests and Other Earnings 1,155,371 59,675 1,189,995 76,546 830,000 48,207 102,842 54,634 113.3% Rents, Leases, and Concessions 634,897 164,492 673,666 155,535 572,695 140,061 167,060 27,000 19.3% Contributions and Donations 177,919 575 197,221 - 125,204 192 9,087 8,895 4635.1% Other Miscellaneous 954,680 62,236 708,728 47,611 748,987 57,794 328,922 271,128 469.1% Other Financing Sources (Transfer-In, etc)283,213 - (139,213) - 1,028,576 85,715 - (85,715) -100.0% Total Operating Revenues 109,530,146 7,364,146 106,944,483 8,189,596 105,153,461 7,340,970 7,665,044 324,074 4.4% OPERATING EXPENDITURES Council 362,101 36,043 377,512 38,187 414,410 41,591 37,603 3,988 9.6% Executive 1,954,748 211,310 2,073,371 216,805 2,302,698 244,735 237,942 6,793 2.8% Emergency Management*569,333 35,052 590,655 46,027 645,858 45,143 45,724 (581) -1.3% City Attorney 2,088,718 168,105 2,216,692 177,424 2,393,230 192,068 189,746 2,322 1.2% Court Services 2,174,217 169,642 2,222,633 182,051 2,646,159 211,660 194,145 17,515 8.3% Community and Eco Dvlpmnt Admin 1,351,830 109,731 1,347,568 111,659 1,507,929 123,672 118,832 4,840 3.9% Development Services 3,023,728 239,337 3,032,130 239,592 3,473,019 274,665 243,791 30,873 11.2% Economic Development 949,467 46,869 833,055 54,919 1,363,153 74,818 59,747 15,071 20.1% Planning 2,815,148 221,112 3,022,122 230,023 3,434,856 265,463 259,401 6,062 2.3% Finance 3,132,609 197,230 3,427,262 215,045 3,591,794 225,737 203,307 22,430 9.9% City Clerk 1,119,376 62,018 1,274,941 73,376 1,341,087 75,836 77,536 (1,700) -2.2% Human Resources 1,221,841 87,874 1,268,733 93,068 1,506,283 109,432 102,774 6,658 6.1% Police 30,987,047 2,564,523 33,764,563 2,631,438 35,629,655 2,859,238 2,960,926 (101,688) -3.6% Jail Services 4,807,443 400,352 5,970,673 497,368 6,239,267 480,498 480,498 - 0.0% Fire*- - - - - - - - 0.0% Community Services Admin 554,951 44,101 510,454 39,217 528,906 41,362 44,815 (3,453) -8.3% Parks 4,926,587 314,260 5,026,203 317,964 5,414,681 346,565 375,775 (29,210) -8.4% Parks Planning & Natural Resources 1,059,058 53,458 1,114,153 57,925 1,201,760 61,593 58,398 3,196 5.2% Recreation 6,152,644 403,998 6,280,121 394,586 6,239,574 399,522 385,416 14,105 3.5% Human Services 1,634,387 98,615 1,421,280 55,197 1,363,310 68,104 82,392 (14,288) -21.0% Neighborhoods, Resources, & Events - - - - - - - - 0.0% Museum 235,712 19,400 245,590 19,889 252,298 20,596 20,585 11 0.1% Public Works Admin 406,781 33,498 417,786 34,521 425,954 35,137 35,153 (16) 0.0% Street Maintenance 5,603,141 408,757 5,676,989 428,817 5,894,373 437,670 434,412 3,258 0.7% Transportation 5,368,887 326,959 5,550,779 366,141 6,194,559 393,185 380,349 12,836 3.3% Debt Service 6,063,576 41,377 5,696,184 37,996 6,793,668 34,615 34,615 - 0.0% Non-Departmental and Other 14,245,763 301,517 4,064,656 309,681 6,212,181 331,437 331,437 - 0.0% Total Operating Expenditures 102,809,093 6,595,136 97,426,104 6,868,916 107,010,663 7,394,342 7,395,321 (979) 0.0% Total Ending Fund Balance 33,284,838$ 27,332,795$ 42,803,217$ 34,605,518$ 30,609,010$ 32,412,840$ 43,072,940$ 10,660,100$ 32.9% *Emergency Management was moved to Executive due to formation of RRFA Favorable (Unfavorable) 17 18 019 Variance Annual Actual YTD Actual Annual Budget YTD Budget YTD ActualSummary of Sources and Uses Annual Actual YTD Actual Monthly Financial Report January 2019 Monthly Financial Report January 2019 Page | 2 Preliminary as of 03/01/2019 OVERVIEW This financial overview reflects the City’s overall financial position for the fiscal year through January 31, 2019. Except as noted, year-to- date budgeted revenues and operating expenditures are generally based on the collection/disbursement patterns for the same period of the preceding two years. The table on the previous page summarizes the general governmental fund revenues and expenditures. Revenues Taxes The combined collection of property, sales/use, utility, gambling, admissions, and real estate excise taxes represents 66% of all resources supporting general governmental activities. The following section provides detail information on property, sales, utility, and other taxes. Property Tax Current Month Actual: $40K YTD Actual: $40K Budgeted YTD: $22K Prior Year Same Month: $(-13K) Prior Year YTD: $(-13K) Year-to-Year Variance: $53K, N/A Actual-to-Budget YTD Variance: $18K, 81% Narrative: The total property tax levy is $4.8 million more in 2019, which is why the year-to-year comparison should skew higher across the board in 2019. Sales Tax Current Month Actual: $2.3M YTD Actual: $2.3M Budgeted YTD: $2.2M Prior Year Same Month: $2.2M Prior Year YTD: $2.2M Year-to-Year Monthly Variance: $43K, 2% Year-to-Year YTD Variance: $43K, 2% Actual-to-Budget Monthly Variance: $88K, 4% Actual-to-Budget YTD Variance: $88K, 4% Narrative: Retail , Manufacturing, Wholesale and Service are the sectors generating and collecting more than anticipated. 2019’s monthly budgets are generally based on 2013 through 2018 collections. 18 019 019 Actual Budget Actual $%$% Jan (12,745)$ 22,053$ 39,879$ 52,624$ -413%17,826$ 81% Feb 106,364 155,869 Mar 665,471 810,322 Apr 6,908,633 7,204,056 May 2,419,925 3,569,696 Jun 108,842 122,794 Jul 90,072 82,493 Aug 84,185 95,855 Sep 196,536 330,254 Oct 7,077,878 5,753,221 Nov 1,742,104 4,379,026 Dec (3,318,928) (1,640,386) YTD Total (12,745)$ 22,053$ 39,879$ 52,624$ -413%17,826$ 81% Annual Total 16,068,337$ 20,885,254$ Property Tax Revenues Year to Date through January 019 vs. 18 019 vs. Budget Month 18 019 019 Actual Budget Actual $%$% Jan 2,217,949$ 2,172,405$ 2,260,685$ 42,736$ 2%88,280$ 4% Feb 2,839,044 2,602,634 - Mar 2,099,180 2,064,301 - Apr 2,009,648 2,008,608 - May 2,506,478 2,429,497 - Jun 1,997,751 2,105,242 - Jul 2,385,665 2,245,590 - Aug 2,573,863 2,475,019 - Sep 2,671,784 2,358,468 - Oct 2,438,390 2,413,738 - Nov 2,385,700 2,491,359 - Dec 2,303,183 2,317,209 - YTD Total 2,217,949$ 2,172,405$ 2,260,685$ 42,736$ 2%88,280$ 4% Annual Total 28,428,635$ 27,684,069$ 019 vs. Budget019 vs. 18 Month Year to Date through January Local Retail Sales Tax Revenues Monthly Financial Report January 2019 Page | 3 Preliminary as of 03/01/2019 The following table breaks out the City’s base sales tax (excluding Criminal Justice and Annexation Credit) by major business sectors: Utility tax Current Month Actual: $1.3M YTD Actual: $1.3M Budgeted YTD: $1.5M Prior Year Same Month: $1.4M Prior Year YTD: $1.4M Year-to-Year Monthly Variance: $(-139K), -10% Year-to-Year YTD Variance: $(-139K), -10% Actual-to-Budget Monthly Variance: $(-258K), -17% Actual-to-Budget YTD Variance: $(-258K), -17% Narrative: The large variance with the budget is due to the timing of when January 2019 Cell/Phone/Garbage taxes and transfer station fees were recorded. The monthly budgets are based on 2017/2018 activity. The table below breaks out Utility Tax by source. As mentioned last month, the large variance with electrical and natural gas was due to an error in recording these revenues and has corrected itself in June. Sales Tax by Sector 18 019 Bgt YTD Act Change 019 /18 019 Act vs Bgt New Construction 366,091$ 311,105$ 311,272$ (54,819)$ -15% $ 167 0% Auto Sales 401,075 411,160 409,145 8,070 2% (2,014)0% General Retail 648,986 652,024 683,146 34,160 5% 31,122 5% Manufacturing 148,763 151,122 171,958 23,195 16% 20,836 14% Wholesale 108,665 112,425 116,622 7,957 7% 4,197 4% Service 499,228 484,346 515,472 16,244 3% 31,126 6% Other 45,141 50,224 53,070 7,928 18% 2,846 6% YTD Total 2,217,949$ 2,172,405$ 2,260,685$ 42,736$ 2%88,280$ 4% Note: Excludes Annexation Credit and Criminal Justice Sales Tax revenue. 18 019 019 Actual Budget Actual $%$% Jan 1,395,386$ 1,514,363$ 1,256,646$ (138,740)$ -10%(257,717)$ -17% Feb 1,617,972 1,429,503 Mar 1,579,191 1,362,194 Apr 1,463,336 1,583,918 May 1,414,956 1,405,448 Jun 1,269,602 1,282,448 Jul 1,398,960 1,415,513 Aug 1,203,168 1,166,791 Sep 1,197,617 1,195,903 Oct 1,292,218 1,336,595 Nov 1,083,283 1,141,066 Dec 1,449,344 1,408,409 YTD Total 1,395,386$ 1,514,363$ 1,256,646$ (138,740)$ -10%(257,717)$ -17% Annual Total 16,365,034$ 16,242,153$ 019 vs. Budget019 vs. 18 Year to Date through January Utility Tax Revenues Month Utility Tax by Type 18 019 Bgt YTD Act Change 019 /18 019 Act vs Bgt Electrical 557,035$ 549,656$ 499,371$ (57,664)$ -10% $ (50,285)-9% Natural Gas 230,680 218,037 191,949 (38,731) -17% (26,088)-12% Cell 79,178 178,603 35,135 (44,044) -56% (143,469)-80% Phone 63,229 70,328 50,005 (13,224) -21% (20,323)-29% Cable 142,274 149,213 - (142,274) 0% (149,213)0% Garbage/Solid Waste 54,608 53,004 5,585 (49,022) -90% (47,419)-89% City Utilities 268,383 295,522 474,601 206,219 77% 179,079 61% Utility Tax Audit - - - - N/A - N/A YTD Total 1,395,386$ 1,514,363$ 1,256,646$ (138,740)$ -10%(257,717)$ -17% Annual Total 16,365,034$ 16,242,153$ YTD as % of 9%9% Monthly Financial Report January 2019 Page | 4 Preliminary as of 03/01/2019 Other Taxes Real Estate Excise Tax Current Month Actual: $748K YTD Actual: $748K Budgeted YTD: $236K Prior Year Same Month: $840K Prior Year YTD: $840K Year-to-Year Monthly Variance: $(-92K), -11% Year-to-Year YTD Variance: $(-92K), -11% Actual-to-Budget Monthly Variance: $513K, 217% Actual-to-Budget YTD Variance: $513K, 217% Narrative: REET collections for January are slightly behind 2018 figures but much higher than budgeted expectations. Gambling Tax Current Month Actual: $83K YTD Actual: $83K Budgeted YTD: $156K Prior Year Same Month: $211K Prior Year YTD: $211K Year-to-Year Monthly Variance: $(-128K), -61% Year-to-Year YTD Variance: $(-128K), -61% Actual-to-Budget Monthly Variance: $(-73K), -47% Actual-to-Budget YTD Variance: $(-73K), -47% Narrative: Gambling tax revenue is behind in January due to timing of a tax receipts for taxes associated with card games receipted in February. Franchise Fees Current Month Actual: $36K YTD Actual: $36K Budgeted YTD: $374K Prior Year Same Month: $371K Prior Year YTD: $371K Year-to-Year Monthly Variance: $(-335K), -90% Year-to-Year YTD Variance: $(-335K), -90% Actual-to-Budget Monthly Variance: $(-338K), -90% Actual-to-Budget YTD Variance: $(-338K), -90% Narrative: Due to timing issues of when January franchise fees were receipted, there is a large negative variance for January performance that should be made up in February. 18 019 019 Actual Budget Actual $%$% Jan 210,929$ 156,146$ 83,278$ (127,651)$ -61%(72,869)$ -47% Feb 255,285 164,992 - Mar 245,283 154,213 - Apr 275,795 179,219 - May 222,540 170,531 - Jun 252,663 175,721 - Jul 255,351 175,771 - Aug 226,388 160,458 - Sep 75,748 101,653 - Oct 222,034 158,206 - Nov 228,862 176,826 - Dec 360,166 226,264 - YTD Total 210,929$ 156,146$ 83,278$ (127,651)$ -61%(72,869)$ -47% Annual Total 2,831,045$ 2,000,000$ 019 vs. 18 Gambling Tax Revenue Month Year to Date through January 019 vs. Budget 18 019 019 Actual Budget Actual $%$% Jan 371,458$ 373,958$ 36,388$ (335,070)$ -90%(337,569)$ -90% Feb 16,600 11,383 - Mar 15,792 12,373 - Apr 37,420 202,329 - May 340,622 173,133 - Jun 1,050 11,122 - Jul 344,386 341,360 - Aug 15,193 11,379 - Sep - 4,349 - Oct 346,194 358,545 - Nov 11,200 10,786 - Dec 9,000 15,782 - YTD Total 371,458$ 373,958$ 36,388$ (335,070)$ -90%(337,569)$ -90% Annual Total 1,508,915$ 1,526,500$ Franchise Fees Revenue Year to Date through January Month 019 vs. 18 019 vs. Budget 18 019 019 Actual Budget Actual $%$% Jan 840,316$ 235,792$ 748,462$ (91,854)$ -11%512,671$ 217% Feb 366,011 88,705 Mar 291,045 126,164 Apr 405,746 99,837 May 607,431 125,357 Jun 496,917 157,020 Jul 846,631 181,410 Aug 406,944 136,185 Sep 451,349 285,331 Oct 1,716,905 1,133,509 Nov 976,580 716,731 Dec 409,249 713,958 YTD Total 840,316$ 235,792$ 748,462$ (91,854)$ -11%512,671$ 217% Annual Total 7,815,124$ 4,000,000$ *Total REET (GF & CIP) Month 019 vs. Budget019 vs. 18 Real Estate Excise Tax (REET) Revenues* Year to Date through January Monthly Financial Report January 2019 Page | 5 Preliminary as of 03/01/2019 Admission Tax Current Month Actual: $0K YTD Actual: $225K Budgeted YTD: $320K Prior Year Same Month: $45K Prior Year YTD: $223K Year-to-Year YTD Variance: $47K, 1% Actual-to-Budget YTD Variance: $(-65K), -30% Narrative: Due to timing issues of when January admission taxes were receipted, there is a large negative variance for January performance that should be made up in February. Business & Occupation Tax Current Month Actual: $919K YTD Actual: $919K Budgeted YTD: $839K Prior Year Same Month: $1.3M Prior Year YTD: $1.3M Year-to-Year Monthly Variance: $(-382K), -29% Year-to-Year YTD Variance: $(-382K), -29% Actual-to-Budget Monthly Variance: $189K, 26% Actual-to-Budget YTD Variance: $189K, 26% Narrative: Businesses with gross receipts of $500K or more per year, earned within the City of Renton, are now required to file and pay Business and Occupation (B&O) tax, in lieu of the Business License registration fee. Licenses and Permits Business Licenses Current Month Actual: $281K YTD Actual: $281K Budgeted YTD: $189K Prior Year Same Month: $574K Prior Year YTD: $574K Year-to-Year Monthly Variance: $(-293K), -51% Year-to-Year YTD Variance: $(-293K), -51% Actual-to-Budget Monthly Variance: $92K, 98% Actual-to-Budget YTD Variance: $92K, 98% Narrative: The variance with the prior year is mostly due to late filings and payments associated with the business renewal process. 18 019 019 Actual Budget Actual $%$% Jan 56,598$ 65,388$ 8$ (56,590)$ -100%(65,380)$ -100% Feb 1,473 2,374 - Mar 112 62 - Apr 54,560 63,040 - May 1,911 1,778 - Jun - 438 - Jul - 28,454 - Aug 62,959 35,964 - Sep - - - Oct 46,297 26,750 - Nov 1,556 867 - Dec - 24,884 - YTD Total 56,598$ 65,388$ 8$ (56,590)$ -100%(65,380)$ -100% Annual Total 225,466$ 250,000$ 019 vs. Budget Admission Tax Revenue Year to Date through January Month 019 vs. 18 17 18 019 019 Actual Actual Budget Actual $%$% Jan 432,319Z$ 1,301,574$ 730,591$ 919,391$ (382,183)$ -29%188,800$ 26% Feb 794,093 1,013,630 568,964 - Mar 13,228 48,278 27,099 - Apr 4,626,880 5,430,049 3,047,959 - May 316,791 212,741 119,415 - Jun 23,491 172,687 96,931 - Jul 1,139,041 840,839 471,974 - Aug 399,375 451,217 253,274 - Sep 169,792 12,193 6,844 - Oct 981,417 572,637 321,429 - Nov 320,706 632,346 354,944 - Dec 415,901 1,026 576 - YTD Total 432,319Z$ 1,301,574$ 730,591$ 919,391$ (382,183)$ -29%188,800$ 26% Annual Total 9,633,034Z$ 10,689,216$ 6,000,000$ *Total Business & Occupation Taxes (GF & CIP) Business & Occupation Taxes* Year to Date through January Month 019 vs. 18 019 vs. Budget 18 019 019 Actual Budget Actual $%$% Jan 574,453$ 189,046 281,106$ (293,347)$ -51%92,060$ 49% Feb 208,947 92,184 - Mar 41,777 27,476 - Apr 34,897 62,914 - May 33,623 51,500 - Jun 30,721 20,877 - Jul 16,354 64,859 - Aug 15,778 38,094 - Sep 8,889 20,772 - Oct 10,260 57,560 - Nov 7,950 29,374 - Dec 54,000 40,800 - YTD Total 574,453$ 189,046$ 281,106$ (293,347)$ -51%92,060$ 49% Annual Total 1,037,650$ 695,455$ *Total Business License (GF & CIP) Business Licenses* Month 019 vs. 18 Year to Date through January 019 vs. Budget Monthly Financial Report January 2019 Page | 6 Preliminary as of 03/01/2019 Building Permits and Development Service Fees Current Month Actual: $317K YTD Actual: $317K Budgeted YTD: $388K Prior Year Same Month: $315K Prior Year YTD: $315K Year-to-Year Monthly Variance: $3K, 1% Year-to-Year YTD Variance: $3K, 1% Actual-to-Budget Monthly Variance: $(-71K), -18% Actual-to-Budget YTD Variance: $(-71K), -18% Narrative: Building permit fees performed right on par with 2018 activity for January but inversely trailed a bit behind budget figures. Intergovernmental These revenue sources include federal (direct and indirect) grants, state grants, state shared revenues, local grants, and entitlements. State shared revenues 92% of the total revenues in this category. The year-to-date total Intergovernmental revenue is $665K or 9% of the budget. State Shared Revenues YTD Total: $613K Year-to-Year YTD Variance: $43K, 8% Actual-to-Budget YTD Variance: $64K, 12% Narrative: The higher than expected collection is due to collecting more than anticipated Criminal Justice’s Sales Tax and marijuana enforcement. This large increase was the result of a “catch-up” payment from the state in March. The cities shared revenue distribution will be approximately double the normal bi-monthly distribution (through June 2019). 18 019 019 Actual Budget Actual $%$% Jan 314,626$ 388,426$ 317,466$ 2,839$ 1%(70,960)$ -18% Feb 280,745 304,673 Mar 588,527 598,844 Apr 403,892 365,844 May 436,943 544,326 Jun 363,521 532,521 Jul 484,920 410,225 Aug 411,236 463,122 Sep 342,301 431,287 Oct 453,317 430,456 Nov 297,467 423,510 Dec 272,733 330,035 YTD Total 314,626$ 388,426$ 317,466$ 2,839$ 1%(70,960)$ -18% Annual Total 4,650,227$ 5,223,637$ Building Permits and Development Service Fees Year to Date through January 019 vs. Budget019 vs. 18 Month Intergovernmental 18 019 Bgt YTD Act Change 019 /18 019 Act vs Bgt Fire District #25 -$ -$ -$ -$ N/A $ - N/A Fire District #40 - - - - N/A - N/A State Shared Revenue 569,772 548,439 612,540 42,768 8%64,101 12% Federal Grants - 732 - - N/A (732) 0% State Grants 15,271 15,471 15,471 200 1%- 0% Other Grants/Intgovt 16,313 21,764 37,097 20,784 127%15,332 70% ARRA Grants - - - - N/A - N/A Total Rev YTD 601,356$ 586,406$ 665,107$ 63,752$ 11%78,701$ 13% Total Rev Annual 7,323,308$ 7,082,650$ YTD %8%8%9% Note: Includes CJ Sales Tax and FD25 & FD40 contracts 18 019 019 Actual Budget Actual $%$% Crim Just Sales Tax 231,017$ 217,524$ 261,015$ 29,998$ 13%43,491$ 20% Judicial Contribution - - - - N/A - N/A Crim Just - High Crime 68,269 67,343 74,000 5,731 8%6,658 10% Crim Just - Pop 7,278 6,045 7,593 315 4%1,548 26% Crim Just - Spec Prog 26,365 27,006 27,390 1,025 4%384 1% State DUI 3,796 4,459 3,786 (10) 0%(673) -15% Marijuana Distribution - - - - N/A - N/A Liquor Profits - - - - N/A - N/A Liquor Excise Tax 119,489 113,426 128,697 9,208 8%15,271 13% Fuel Tax 113,558 112,638 110,059 (3,499) -3%(2,578) -2% YTD Total 569,772$ 548,439$ 612,540$ 42,768$ 8%64,101$ 12% Annual Total 6,710,599$ 6,182,479$ 019 vs. Budget State Shared Revenues 019 vs. 18 Revenue Year to Date through January Monthly Financial Report January 2019 Page | 7 Preliminary as of 03/01/2019 Charges for Services These revenue sources consist of general government, public safety, plan review and inspection, culture and recreation, and interfund/interdepartmental sales and services. Recreation and interfund/interdepartmental sales and services constitute 46% of the total revenue in this category. The year-to-date total charges for services are $909K or 10% of the budget. The following sections provide detail information for Public Safety, Recreation, and Interfund Services. Public Safety Services YTD Total: $69K Year-to-Year YTD Variance: $(-156K), -69% Actual-to-Budget YTD Variance: $(-32K), -32% Narrative: The variance with the prior year is due to collecting large reimbursements for the School Resource Officer program in January of 2018 that did not reoccur in 2019. However, a new revenue stream for 2019 generated from Valley SWAT, and generated roughly $10K in revenue in January. Recreation Current Month Actual: $64K YTD Total: $64K Budgeted YTD: $165K Prior Year Same Month: $138K Prior Year YTD Total: $138K Year-to-Year Monthly Variance: $(-75K), -54% Year-to-Year YTD Variance: $(-75K), -54% Actual-to-Budget Monthly Variance: $(-101K), -61% Actual-to-Budget YTD Variance: $(-101K), -61% Narrative: The new recreation software, PeferctMind, follows GAAP revenue recognition principles where revenue is not recognized until the service is performed, whereas the previous software recognized all revenue at the date of the transaction. As a result, actual revenue for 2019 will likely lag behind 2018 amounts as revenue for course programming will not fully be recognized until each session of the program occurs. 18 019 019 Actual Budget Actual $%$% Jan 224,932$ 100,853$ 68,958$ (155,975)$ -69%(31,896)$ -32% Feb 239,718 107,499 - Mar 82,789 80,686 - Apr 58,572 41,815 - May 77,233 49,162 - Jun 84,800 44,674 - Jul 92,695 53,169 - Aug 229,066 100,095 - Sep 78,189 46,042 - Oct 187,194 83,389 - Nov 68,008 50,802 - Dec 142,886 79,647 - YTD Total 224,932$ 100,853$ 68,958$ (155,975)$ -69%(31,896)$ -32% Annual Total 1,566,082$ 837,835$ Year to Date through January Public Safety Services 019 vs. 18 019 vs. Budget Month 18 019 019 Actual Budget Actual $%$% Jan 138,388$ 164,609$ 63,819$ (74,569)$ -54%(100,790)$ -61% Feb 51,694 51,039 - Mar 55,300 68,349 - Apr 70,321 82,168 - May 82,814 94,662 - Jun 191,108 194,998 - Jul 419,790 510,833 - Aug 313,627 394,016 - Sep 76,421 119,972 - Oct 72,092 68,624 - Nov 37,924 54,491 - Dec (104) 25,954 - YTD Total 138,388$ 164,609$ 63,819$ (74,569)$ -54%(100,790)$ -61% Annual Total 1,509,375$ 1,829,714$ Recreation Year to Date through January 019 vs. Budget019 vs. 18 Month Monthly Financial Report January 2019 Page | 8 Preliminary as of 03/01/2019 Interfund Services YTD Total: $355K Year-to-Year YTD Variance: $13K, 4% Actual-to-Budget YTD Variance: $(-14K), -4% Narrative: 2019’s monthly budgets are based on 1/12th of the annual budget. The majority of these revenues are related to indirect cost allocations, which are internal administrative costs. The remaining costs consist of Development Services division’s inspection fees, Parks Planning and Natural Resources division’s capital investment program reimbursements, Transportation division’s capital investment program reimbursements, and Maintenance division’s street maintenance reimbursements. Fines and Penalties YTD Total: $218K Year-to-Year YTD Variance: $77K, 54% Actual-to-Budget YTD Variance: $51K, 30% Narrative: These revenue sources contain civil (penalties, infractions, and parking), criminal (traffic, non-traffic, and costs), and non-court fines, forfeitures, and penalties. The table below breaks down these fines by type. Positive trends in the revenue generated from the photo enforcement program is closing the actual-to- budget variance, and would expect to be a positive variance by year-end. 18 019 019 Actual Budget Actual $%$% Jan 341,804$ 369,281$ 355,266$ 13,461$ 4%(14,015)$ -4% Feb 344,339 369,281 - Mar 378,470 369,281 - Apr 332,894 369,281 - May 328,765 369,281 - Jun 320,735 369,281 - Jul 236,427 369,281 - Aug 313,949 369,281 - Sep 314,193 369,281 - Oct 330,901 369,281 - Nov 332,981 369,281 - Dec 324,948 369,281 - YTD Total 341,804$ 369,281$ 355,266$ 13,461$ 4%(14,015)$ -4% Annual Total 3,900,407$ 4,431,371$ Interfund Services Year to Date through January 019 vs. 18 019 vs. Budget Month 18 019 019 Actual Budget Actual $%$% Jan 141,625$ 167,472$ 218,190$ 76,565$ 54%50,718$ 30% Feb 224,814 255,945 Mar 312,111 301,071 Apr 137,934 219,704 May 230,762 272,663 Jun 235,311 308,687 Jul 451,443 415,323 Aug 624,200 543,712 Sep 461,645 408,916 Oct 582,058 513,022 Nov 465,852 419,837 Dec 405,436 432,834 YTD Total 141,625$ 167,472$ 218,190$ 76,565$ 54%50,718$ 30% Annual Total 4,273,192$ 4,259,187$ 019 vs. Budget019 vs. 18 Year to Date through January Fines and Penalties by Month Month Year to Date through January 18 019 019 Actual Budget Actual $%$% Civil Penalties -$ -$ -$ -$ N/A -$ N/A Civil Infraction Penalties - - - - N/A - N/A Civil Parking Infraction Penalties - - - - N/A - N/A Photo Enforcement Program 136,853 162,639 214,193 77,340 57%51,554 32% Criminal Traffic Misdemeanor Fines - - - - N/A - N/A Criminal Non-Traffic Fines 2,287 955 767 (1,520) -66%(188) -20% Criminal Costs - - - - N/A - N/A Non-Court Fines, Forfeitures and Penalties 2,485 3,878 3,230 745 30%(648) -17% YTD Total 141,625$ 167,472$ 218,190$ 76,565$ 54%50,718$ 30% Annual Total 4,273,192$ 4,259,187$ Revenue 019 vs. Budget Fines and Penalties by Type 019 vs. 18 Monthly Financial Report January 2019 Page | 9 Preliminary as of 03/01/2019 Included in the Fines and Penalties revenue budget is $214K from the Photo Enforcement program. The monthly budget is based on the prior year’s revenue. The year-to- date collections from this program equates to $214K. The associated costs includes the equipment provided by American Traffic Solutions, Inc. (ATS), dedicated 2 FTE in the Court Services Department to process the increased caseload. This staff time, along with a 50% pro tem budget and interpreter costs amounts to $329K for personnel costs. The total costs for the program equates to $1.2M which is represented in the table. Miscellaneous YTD Total: $300K Year-to-Year YTD Variance: $37K, 14% Actual-to-Budget YTD Variance: $75K, 33% Narrative: This revenue source reflects the collection of interest and other earnings, rents, leases, and concessions, contributions, and donations from private sources, and other miscellaneous revenues. The table below shows the primary drivers of the positive variances for January. 18 019 019 Actual Budget Actual $%$% Jan 262,690$ 224,703$ 299,507$ 36,817$ 14%74,804$ 33% Feb 150,608 103,943 Mar 178,170 123,607 Apr 152,700 120,552 May 386,715 114,422 Jun 193,674 145,727 Jul 221,279 166,400 Aug 275,725 175,899 Sep 164,873 123,283 Oct 200,817 125,071 Nov 174,068 111,834 Dec 305,276 247,581 YTD Total 262,690$ 224,703$ 299,507$ 36,817$ 14%74,804$ 33% Annual Total 2,666,594$ 1,783,021$ Year to Date through January Month 019 vs. Budget019 vs. 18 Miscellaneous Revenues by Month 18 019 019 Actual Budget Actual $%$% Interests and Other Earnings 76,546$ 48,207$ 102,842$ 26,295$ 34%54,634$ 113% Rents, Leases, and Concessions 155,535 140,061 167,060 11,525 7%27,000 19% Contributions/Donations from Private Sources - 192 9,087 9,087 100%8,895 4635% Other 25,514 36,243 20,518 (4,996) -20%(15,724) -43% Seizure Funds - Federal/State/Local 5,094 - - (5,094) 0%- N/A YTD Total 262,690$ 224,703$ 299,507$ 36,817$ 14%74,804$ 33% Annual Total 2,666,594$ 1,783,021$ 019 vs. Budget Miscellaneous Revenues by Type Year to Date through January Revenue 019 vs. 18 Favorable 9 Budget 9 Actual 9 Budget 9 Actual (Unfavorable)1 Jan 162,639$ 214,193$ 124,941$ 27,432$ 186,761$ Feb 187,840 - 124,941 - - Mar 199,988 - 124,941 - - Apr 174,391 - 124,941 - - May 212,936 - 124,941 - - Jun 231,485 - 124,941 - - Jul 349,711 - 124,941 - - Aug 442,497 - 124,941 - - Sep 341,229 - 124,941 - - Oct 439,665 - 124,941 - - Nov 354,895 - 124,941 - - Dec 334,129 - 124,941 - - YTD Total 162,639$ 214,193$ 124,941$ 27,432$ 186,761$ Annual Total 3,431,405$ 1,499,297$ 1Actuals of Revenues and Expenses ExpensesRevenues Photo Enforcement Program Year to Date through January Month Monthly Financial Report January 2019 Page | 10 Preliminary as of 03/04/2019 EXPENSES Overall, the City has expended 6.9% of its budgeted general governmental expenditures at the end of January. This is $1K or 0% below year-to-date budgeted expenditures. See below for summary of unfavorable items for general governmental departments. Parks is over the year-to-date budget by 29K or 8.4%. This is in part due to over spending on office supplies ($8K) and water ($17K). We will monitor this to determine if a budget adjustment is needed later in the year. Human Services is over the year-to-date budget by $14K or 21%. This is primarily due to over spending on the healthy housing program ($17K), however, this is associated with expenses incurred in 2018 and will be accrued for appropriately. Emergency Management, City Clerk, Community Services Admin, and Police are all reflecting a negative variance on their respective expenditures; however, after taking a deeper dive into the specific costs associated with these variances, these are primarily related to timing differences that are skewing the variance calculation. Monthly Financial Report January 2019 Page | 11 Preliminary as of 03/01/2019 ENTERPRISE FUNDS The table below gives an analysis of all City Enterprise funds. Displayed are the year-to-date revenues and expenditures for each enterprise. Included in each funds are the capital revenues and expenditures. Airport Golf Course Solid Waste Utility Water Utility Wastewater Utility Surface Water Utility Metro REVENUES: Licenses and permits - - - - 8,200 4,150 - Grants / intergovernmental - - - - - - - Charges for services 25,354 86,512 1,149,721 1,344,281 951,928 1,143,846 1,487,357 Interdepartmental services - - - - - - - Fines and penalties - - - - 176 - - Rents, leases, and misc fees 214,468 8,257 - 5,659 - - - Interest and other misc 6,344 1,591 3,617 49,359 39,547 21,270 6,854 TOTAL REVENUES 246,166 96,360 1,153,338 1,399,299 999,851 1,169,266 1,494,211 EXPENSES: Utility billing - - 3,583 17,764 15,750 26,125 - Utility systems - - 735,141 309,295 293,439 272,114 - Utility maintenance - - 31,107 405,713 163,005 257,650 - Transportation 132,125 - - - - - - Golf - 148,777 - - - - - TOTAL EXPENSES 132,125 148,777 769,831 732,772 472,194 555,889 - AMOUNT AVAILABLE FOR DEBT SERVICE 114,041 (52,417) 383,507 666,527 527,657 613,377 1,494,211 DEBT SERVICE: Principal - - - - - - - Interest - - - - - 43,337 - TOTAL DEBT SERVICE - - - - - 43,337 - CAPITAL PROJECTS - - - 19,977 10,862 23,402 - TRANSFERS IN/(OUT)- - - - 28,356 - - CHANGE IN FUND BALANCE 114,041 (52,417) 383,507 646,550 545,151 546,638 1,494,211 BEGINNING FUND BALANCE, Jan 1 4,985,377 110,812 2,276,333 38,002,973 18,879,201 16,356,030 5,512,418 ENDING FUND BALANCE, Nov 30 5,099,418 58,395 2,659,840 38,649,523 19,424,352 16,902,668 7,006,629 Monthly Financial Report January 2019 Page | 12 Preliminary as of 03/01/2019 INTERNAL SERVICE FUNDS The table below gives an analysis of all City Internal Service Funds. Displayed are the year-to-date revenues and expenditures for each internal service. Included in each fund are the capital revenues and expenditures. Equipment Rental Information Technology Facilities Communications Insurance Healthcare Retiree Healthcare REVENUES: Technology Fee - 38,524 - - - - - Grants / intergovernmental - - - - - - 35,898 Charges for services Equipment rental m&o 192,984 412,771 - - - - - Print and mail - - - 37,221 - - - Communications - - - 54,803 - - - Facilities - - 356,919 - - - - Data cards and cell phones - - - - - - - IT service contracts - - - - - - - Interest and other misc 8,294 5,081 1,901 856 23,073 5,293 17,264 Internal service fund misc: Vehicle / equipment capital recovery 248,015 - - - - - - Insurance premiums - - - - 140,712 - - Worker's comp/unemployment - - - - 113,434 - - Benefit premiums - - - - - 843,684 218,720 Other misc 2,536 - 12,356 - - 84,581 - Interfund Loan - - - - - - - Capital contributions - - - - - - - Disposal of capital assets 4,186 - - - - - - Insurance recoveries - - - - 6,620 - - TOTAL REVENUES 456,015 456,376 371,176 92,880 283,839 933,558 271,882 EXPENSES: Communications 46,731 Equipment rental 144,516 Facilities 281,818 Healthcare 598,626 Information technology 461,504 Print and mail 42,616 Retiree healthcare 41,464 Risk management: Risk management 373,858 Unemployment - Worker's compensation 178,113 TOTAL EXPENSES 144,516 461,504 281,818 89,347 551,971 598,626 41,464 AMOUNT AVAILABLE FOR CAPITAL 311,499 (5,128) 89,358 3,533 (268,132) 334,932 230,418 CAPITAL PROJECTS 418,759 - - - - - - TRANSFERS IN - 5,793 - - - - - TRANSFERS (OUT)- - (5,000) - - - - CHANGE IN FUND BALANCE (107,260) 665 84,358 3,533 (268,132) 334,932 230,418 BEGINNING FUND BALANCE, Jan 1 6,493,018 3,934,408 1,376,859 685,593 18,522,154 4,259,511 13,876,628 ENDING FUND BALANCE, Nov 30 6,385,758 3,935,073 1,461,217 689,126 18,254,022 4,594,443 14,107,046 Monthly Financial Report January 2019 Page | 13 Preliminary as of 03/01/2019 FUND BALANCE Page 14 shows the ending fund balance as of January 2019. The City’s fund balance is a combination of current deficit/surplus of funds which have accrued from unexpended operating budgets, unanticipated excess revenues, and from balances accumulated from prior years. The prior year’s balances (or beginning balance) include funds identified as being reserved for specific purposes or required to meet the current year’s appropriations. These balances also provide financial stability to the City’s operation during uncertain times and provide a layer of security to bondholders. At the end of January, the City has $43.1M reported in the combined general governmental fund balance of the current year’s operating budget, which is approximately 40.3% of budgeted operating expenditures. This is an increase of $270K from the year’s beginning balance. January’s ending fund balance is over the anticipated General Governmental Fund Balance of $32.3M by $10.7M or 32.9%. At this time last year, the fund balance was 59.4% above the projected year-to-date budget, and the overage in fund balance for the month of January compared to this time last year is very similar ($10.6M for 2019 vs $12.9M for 2018). CONTACT INFORMATION This report is prepared by the Finance Division of the Administrative Services Department. For additional financial information, please also review our website: http://www.rentonwa.gov/. For any questions about the report, please feel free to contact us at mgordon@rentonwa.gov or JDThomas@Rentonwa.gov. Monthly Financial Report January 2019 Page | 14 Preliminary as of 03/01/2019 City of Renton All Funds - Revenue, Expenditures and Fund Balances Cash Basis through January 31, 2019 Funds Balance 01/01/019 Budgeted Revenue Revenue 01/31/19 Total Funds Available Budgeted Expenditure Expenditure 01/31/19 Ending Balance GENERAL GOVERNMENT FUNDS:42,803,217 105,153,461 7,665,044 50,468,261 107,010,663 7,395,321 43,072,940 000 General 31,828,760 73,072,577 5,937,002 37,765,762 74,065,987 5,640,359 32,125,403 001 Community Services 5,370,214 13,380,416 759,476 6,129,690 13,384,921 864,404 5,265,286 003 Street 3,123,400 11,353,000 451,983 3,575,383 12,088,932 814,762 2,760,621 004 Community Dev Block Grant 14,286 424,857 - 14,286 424,857 20,596 (6,310) 005 Museum 65,220 239,129 81 65,301 252,298 20,585 44,716 009 Farmers Market 94,164 - 121 94,285 - - 94,285 201 Ltd GO Bonds Gen Govt Debt 874,740 - 1,085 875,825 - - 875,825 215 Gen Govt Misc Debt Service 1,432,433 6,683,482 515,296 1,947,729 6,793,668 34,615 1,913,114 SPECIAL REVENUE FUNDS:2,527,377 1,855,224 185,737 2,713,114 1,820,644 57,443 2,655,671 102 Arterial Street 163,671 700,000 51,995 215,666 700,000 - 215,666 108 Leased City Properties 651,819 842,550 79,996 731,815 1,007,970 48,406 683,409 110 Hotel Motel 722,387 200,000 31,024 753,411 - 5,788 747,623 125 1% For Art 119,446 15,000 149 119,595 15,000 - 119,595 127 Cable Communication 529,159 97,674 22,149 551,308 97,674 3,249 548,059 135 Springbrook Wetlands Bank 340,895 - 424 341,319 - - 341,319 CAPITAL PROJECT FUNDS (CIP):44,161,724 28,530,208 570,769 44,732,493 30,804,141 872,423 43,860,070 303 Community Services Mitigation 2,578,256 86,500 51,842 2,630,098 1,629,000 - 2,630,098 304 Fire Mitigation 1,455,669 99,000 19,128 1,474,797 128,576 - 1,474,797 305 Transportation Mitigation 3,332,524 1,020,000 94,509 3,427,033 950,000 - 3,427,033 316 Municipal Facilities CIP 24,070,362 5,629,000 388,853 24,459,215 6,891,357 849,016 23,610,199 317 Transportation CIP 5,492,313 21,695,708 7,426 5,499,739 21,205,208 23,407 5,476,332 326 Housing Opportunity 2,582,203 - 3,215 2,585,418 - - 2,585,418 336 New Library Development 456,591 - 564 457,155 - - 457,155 346 New Family First Center Dvlpmnt 4,193,806 - 5,232 4,199,038 - - 4,199,038 ENTERPRISE FUNDS:86,123,144 86,273,109 6,592,846 92,715,990 88,504,833 2,915,167 89,800,823 4X2 Airport Operating & CIP 4,985,377 3,051,767 246,165 5,231,542 2,745,429 132,125 5,099,417 403 Solid Waste Utility 2,276,333 19,505,719 1,153,339 3,429,672 19,347,734 769,832 2,659,840 4X4 Golf Operating & CIP 110,812 2,432,020 102,359 213,171 2,261,417 154,777 58,394 4X5 Water Operating & CIP 38,002,973 18,841,192 1,399,299 39,402,272 21,861,791 752,750 38,649,522 4X6 Waste Water Operating & CIP 18,879,201 11,582,615 1,028,207 19,907,408 13,858,678 483,056 19,424,352 416 King County Metro 5,512,418 16,922,613 1,494,211 7,006,629 16,922,613 - 7,006,629 4X7 Surface Water Operating & CIP 16,356,030 13,937,183 1,169,266 17,525,296 11,507,171 622,627 16,902,669 INTERNAL SERVICE FUNDS:49,148,171 35,393,276 2,871,518 52,019,689 36,451,315 2,593,005 49,426,684 501 Equipment Repair/Replacement 6,493,018 7,404,395 456,014 6,949,032 7,024,476 563,275 6,385,757 502 Insurance 18,522,154 3,343,143 283,838 18,805,992 4,200,634 551,971 18,254,021 503 Information Services 3,934,408 6,017,088 462,169 4,396,577 6,053,852 461,504 3,935,073 504 Facilities 1,376,859 5,261,799 371,176 1,748,035 5,442,486 286,818 1,461,217 505 Communications 685,593 1,105,816 92,880 778,473 1,100,667 89,347 689,126 512 Insurance, Healthcare 4,259,511 11,019,762 933,558 5,193,069 11,651,019 598,626 4,594,443 522 Insurance, Leoff1 Retirees HC 13,876,628 1,241,273 271,883 14,148,511 978,181 41,464 14,107,047 FIDUCIARY FUNDS:7,146,983 468,000 6,687 7,153,670 210,475 17,185 7,136,485 611 Firemen's Pension 7,146,983 468,000 6,687 7,153,670 210,475 17,185 7,136,485 TOTAL FUNDS 231,910,616 257,673,278 17,892,601 249,803,217 264,802,071 13,850,544 235,952,673