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HomeMy WebLinkAbout2003 CAFRTABLE OF CONTENTS DECEMBER 31, 2003 ITEM PAGE INTRODUCTORY SECTION Letterof Transmittal.................................................................................................................... 1-1 2003 Comprehensive Annual Financial Report Award............................................................... 1-7 Corporate Organization Structure & Reporting Relations........................................................... 1-8 FINANCIAL SECTION Independent Auditor's Report................................................................................................. 2-1 Management Discussion and Analysis..................................................................................... 3-1 Basic Financial Statements: Government -wide Financial Statements Statementof Net Assets......................................................................................................... 4-1 Statement of Activities.......................................................................................................... 4-2 Fund Statements Government Fund Financial Statements BalanceSheet..................................................................................................................... 4-4 Reconciliation of the Balance Sheet to the Statement of Net Assets ................................. 4-6 Statement of Revenues, Expenditures and Changes in Fund Balances ............................. 4-7 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .......................... 4-8 Proprietary Fund Financial Statements Statementof Net Assets..................................................................................................... 4-9 Statement of Revenues, Expenses and Changes in Fund Balances..................................4-11 Statementof Cash Flows.................................................................................................. 4-12 Fiduciary Fund Statements Statementof Net Assets................................................................................................... 4-14 Statement of Changes in Fiduciary Net Assets................................................................ 4-15 Notes to Financial Statements: Note 1: Significant Accounting Policies......................................................................... 4-17 Note 2: Compliance and Accountability......................................................................... 4-25 Note 3: Deposits and Investments................................................................................... 4-28 Note4: Property Taxes.................................................................................................... 4-28 Note 5: Capital Assets and Depreciation........................................................................ 4-29 Note6: Pensions............................................................................................................. 4-32 Note 7: Other Post Employment Benefits....................................................................... 4-37 Note8: Contigencies....................................................................................................... 4-37 Note 9: Risk Management.............................................................................................. 4-38 Note 10: Inter -fund Transactions...................................................................................... 4-40 Note11: Net Assets.......................................................................................................... 4-42 Note 12: Prior Year Restatements..................................................................................... 4-42 Note13: Short-term Debt.................................................................................................. 4-43 Note14: Long-term Debt.................................................................................................. 4-43 Note 15: Deferred Charges in Proprietary Funds............................................................. 4-47 Note 16: Segment Information.......................................................................................... 4-47 Note17: Joint Ventures..................................................................................................... 4-47 Note 18: Subsequent Events............................................................................................. 4-48 rM TABLE OF CONTENTS DECEMBER 31, 2003 ITEM Required Supplemental Information Other than MD&A Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget to Actual PAGE GeneralFund.............................................................................................................................. 5-1 ParksFund.................................................................................................................................. 5-2 Combining Statements Non -Major Fund Descriptions................................................................................................... 6-1 CombiningBalance Sheet.......................................................................................................... 6-5 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................ 6-12 Schedule of Revenues, Expenditures and Changes in Fund Balances Budgetto Actual...................................................................................................................... 6-19 Combining Statement of Net Assets, Non -Major Enterprise Funds ........................................ 6-40 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets, Non -Major Enterprise Funds......................................................................................... 6-42 Statement of Cash Flows, Non -Major Enterprise Funds......................................................... 6-43 Combining Statement of Net Assets, Internal Service Funds .................................................. 6-45 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets, Internal Service Funds................................................................................................... 6-47 Combining Statement of Cash Flows, Internal Service Funds ................................................ 6-48 Statistical Section Statistical Section Description................................................................................................... 7-1 Table 1: General Government Revenues & Expenditures - Last Ten Fiscal Years ................ 7-2 Table 2: Assessed Value, Property Tax Rates, Levies and Collections - LastTen Fiscal Years....................................................................................................... 7-4 Table 3: Ratio of Net General Obligation Debt to Assessed Value & Net Bonded Debt per Capita - Last Ten Fiscal Years .................................................. 7-6 Table 4: Special Assessment Billings and Collections - Last Ten Fiscal Years ..................... 7-7 Table 5: Computation of Legal Debt Margin - December 31, 2003 ....................................... 7-8 Table 6: Computation of Direct and Overlapping Debt - December 31, 2003 ....................... 7-9 Table 7: General Obligation Bonds/Expenditure Ratio - Last Ten Fiscal Years .................. 7-10 Table 8: Revenue Bond Coverage - Last Ten Fiscal Years...................................................7-11 Table 9: Retail Sales by Source - Last Five Fiscal Years ..................................................... 7-12 Table 10: Largest Taxpayers and Principal Employers.......................................................... 7-13 Table 11: Construction Permits - Last Ten Fiscal Years......................................................... 7-14 Table 12: Demographic Statistics - Last Ten Fiscal Years ..................................................... 7-16 Table 13: Miscellaneous Statistics.......................................................................................... 7-17 1V August 30, 2004 Honorable Kathy Keolker-Wheeler, Mayor Members of the Renton City Council City of Renton 1055 South Grady Way Renton, Washington 98055 TRANSMITTAL OF THE 2003 COMPREHENSIVE ANNUAL FINANCIAL REPORT Dear Mayor Keolker-Wheeler and City Councilmembers: State law requires that cities with populations of 25,000 or more publish financial statements in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by the Washington State Auditor's Office under the Revised Code of Washington (RCW) 43.09.020. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial Report (CAFR) of the City of Renton for the fiscal year ended December 31, 2003. The report consists of management's representations concerning the finances of the City of Renton (City). Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, the City management established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh the benefits, the City's comprehensive framework of internal controls is designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatement. As management, we attest that, to the best of our knowledge and belief, this financial report is complete and reliable in all material aspects. The City of Renton's financial statements have been audited by the Washington State Auditor's Office. The goal of the independent audit was to provide reasonable assurance that the City's financial statements for the fiscal year ended December 31, 2003, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the City of Renton's financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall 2003 Comprehensive Annual Financial Report City of Renton, Washington financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for issuing an unqualified opinion that the City of Renton's financial statements for the fiscal year ended December 31, 2003, are fairly presented in conformity with GAAP. The State Auditor's report is present as the first component of the financial section of this report. The independent audit of the City of Renton's financial statements is part of a boarder, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. The City's Single Audit Report is issued separately, and is now available upon request. Another state mandate requires the Washington State Auditor's Office perform additional tests of compliance with state laws and regulations as required by RCW 43.09.260. This statute requires the State Auditor to inquire as to whether the City complied with the laws and the Constitution of the State of Washington, its own ordinances and orders, and the requirements of the State Auditor's Office. The City's State compliance report is also available separately upon request. In 2003, the City implemented the newly mandated governmental financial reporting model, which is a dramatic change from prior years. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of the Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the independent auditor's report. THE CITY OF RENTON AND ITS SERVICES The City of Renton was incorporated on September 6, 1901. Located at the south end of Lake Washington, our City borders the City of Seattle to the north. We currently have a land area of 17.2 square miles. We have over 1,180 acres of parks that includes 26 active parks. Our 2003 population, as presented by the Washington State Office of Financial Management, is 54,900. The City of Renton has a strong mayor form of government. The Mayor is independently elected to a four-year term. The Mayor's job is to manage and implement the policies established by the seven -member City Council. The Council establishes policies, appropriates monies through the budget process and adopts local laws through ordinances. Each Councilmember serves a four- year term and they are elected a on staggered two-year cycle. Both the Council and the Mayor are elected on a non-partisan basis. The City is a general purpose governmental entity and provides the full range of municipal services allowed by statute or charter. These services include police, fire, emergency medical, street maintenance, planning and zoning, libraries, parks and recreation, and general administrative services. 1-2 Introduction 2003 Comprehensive Annual Financial Report City of Renton, Washington The City operates four utilities: water, sewer, surface water, and solid waste. These are operated very similar to a private business where the revenues from rates and other direct sources must pay for the operational and long-term debt costs. The City has its own water rights, and does not purchase water from the City of Seattle. The City's sewage is treated by King County, but the City is responsible for transferring and maintaining the system to King County. All residents in Renton must also pay a monthly fee to King County for sewer treatment costs. The City also operates a golf course. All costs of the Maplewood Golf Course are paid from green fees, driving range fees, revenue from the restaurant vendor, and other miscellaneous revenue. The golf course has both short-term operational costs and an annual debt service payment for the construction of the clubhouse and the driving range. One unusual operation the City has is an airport. The Renton Municipal Airport is used by small private plane operators, a float plane tourist company, and Boeing initiates its maiden 737 flights from this airport. The operational costs of the airport are paid from rental fees. Most of the major capital projects are paid with Federal Aviation Administration grants (FAA). The City of Renton must comply with the Budgeting, Accounting, and Reporting System (BARS) as delineated by the Office of the State Auditor, as authorized under RCW 43.09.200 and 43.09.230. State law also mandates timely submission of annual financial reports to the State Auditor for annual independent audits. The City of Renton's financial system incorporates financial and administrative controls to ensure the safeguarding of assets and the reliability of financial reports. These controls are designed to provide reasonable assurance that transactions are executed in accordance with management authorization and are recorded in conformity with GAAP. They also provide accountability of and control over assets and obligations, and that sufficient reporting and review exist to provide adequate information for analysis and comparability of data. The City of Renton maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget. With the exception of construction funds, which receive project -life budget authority through the Capital Improvement Plan and ordinances, all activities are appropriated through the annual budget process and published in the City's Annual 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. A 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. FACTORS AFFECTING FINANCIAL CONDITION The information presented in the financial statements is a perspective of past activities that influence the City's financial condition. The following information is presented to place that information in context with the general economy. Introduction 1-3 2003 Comprehensive Annual Financial Report City of Renton, Washington Economic Condition The Boeing Company continues to be the single largest employer. In 1999 all other employment outpaced Boeing's total employment within Renton's city limits. In 2003 Boeing delivered 187 of their 737 planes from the Renton facility. This is 65 fewer planes than were delivered during 2002. Boeing announced in 2003 that they would no longer offer the 757 plane, but they expect delivery of 737's to reach 221 in 2004. The Boeing Commercial Aircraft Headquarters is located within the City's geographical boundaries. Boeing also has its Customer Service Training Center (CSTC) located in Renton. At the CSTC, The Boeing Company trains pilots from all other the world in large flight simulators on how to fly a Boeing aircraft. Being the home of the Boeing 737 aircraft is a significant attribute of Renton. However, in 1992, the City began a very aggressive economic development program. The City's economic health had relied too much on the air travel business and was affected by its fluctuations. The economic development program chose to focus on three additional attributes Renton has: central location in the Puget Sound; a significant amount of affordable and available land, and waterfront property. During the past decade the City has been able to locate the following retail companies to Renton: IKEA, Fry's Electronics, Wal Mart, and a Sam's Club. Also, the City began to see investment in its downtown core with over 300 new multi -family units within blocks of the City's new downtown central park — the Piazza. The City's investment in a downtown parking garage augmented the County's investment in a new transit center. The private sector, the City, and the Renton School District renovated the historical high school and added a new IKEA Performing Arts Center that is a venue for local and national artists. Since 1993 the City's total assessed property valuation has essentially doubled from $3.4 to $6.3 billion. The sales tax receipts went from $9.8 to $16 million in the same time period. This is at the same time the State changed the tax structure of Washington exempting sales tax on research and manufacturing activities. This one change eliminated one million dollars in the City's tax base in 1996. The City had to generate opportunities for businesses to help the City offset this significant loss. In 1993, the City served 11,892 water accounts. In 2003, water accounts total 15,405. In the past three years the City issued 1,062 single-family permits and 290 multi -family housing permits. The King County Journal stated the City of Renton had the highest growth rate since 2000. Median home values in 1997 were $149,950. As of December 31, 2003, the median home value is $230,000. Outlook The Finance & Information Services Department prepares a long-range forecast each year and provides it to the Mayor, City Council, Unions, and city employees. We estimate that the overall growth rate will begin to slow. However, there is one major development still under consideration. At the end of 2003 the City and Boeing entered into an agreement for the redevelopment of over 50 acres of property on the northern edge of the City. Boeing has vacated this space, along Interstate 405, for the purpose of finding a private developer that will bring new and different retail, commercial, and other mixed uses to the City. The City will help with the construction of utilities and transportation improvements. This will be a significant change for 1-4 Introduction 2003 Comprehensive Annual Financial Report City of Renton, Washington the community and the first step to the redevelopment of property as Boeing becomes a more efficient company and decreases its property holdings within the City of Renton. The City's forecast also illustrates the effects of Initiative 747. This Initiative, passed in 2002, limits our tax levy rate to one percent annually. When this Initiative passed, we realized that we would not see its impacts until 2005 or 2006. Our sales tax growth was healthy enough to meet the costs of providing the current level of service. By 2005, we expect that we will have to begin to change the city's service levels. While revenue continues to grow, the costs of government in terms of retirement rates and health care in particular, are growing at faster rate than the revenue. The other challenge for many cities is the Streamlining Sales Tax effort. The State of Washington's sales tax structure is origin based, which means that sales tax goes to the location where a good was purchased. The State of Washington Department of Revenue (DOR) would like to change this to a destination -based system. Under this structure, the sales tax would be credited to the location where the good is delivered. The DOR estimates the City of Renton will lose over $900,000 in sales tax receipts if this change occurs. This is another change to the tax code that impacts local governments after they have worked hard to develop their own economic development future. Renton is working hard with other agencies to find ways to mitigate the impacts of this change. The City has labor contracts with all of its labor unions through 2005. We will begin to negotiate with all the unions in the first quarter of 2005. During the last contract period, 2003 through 2005, the unions agreed to help pay for some of their health benefits. This has been a significant help in managing health costs. Cash Management The City has adopted a Cash and Investments policy that states the primary objectives of cash and investment management in priority order is safety, liquidity, and return on investment. These investment policies reflect provisions in state statute and authorize investments in obligations of the US Government or its agencies, banker's acceptances, certificates of deposit issued by public depositories in the State of Washington, repurchase agreements, the Washington State Local Government Investment Pool, and any other investment authorized by law for taxing districts in the State of Washington. The City has a Fire Pension Fund that is managed by an Oversight Board with members including Firefighters, the Mayor and one Councilmember. Their investment policies reflect the long-term obligations of investing these funds and are somewhat broader in terms of permitted investments. Since 2001 independent actuarial studies have demonstrated the Fire Pension obligations are fully funded in secure investments. Risk Management The City belongs to the Washington Cities Insurance Authority (WCIA). The WCIA is a consortium of Washington State cities that purchases excess coverage in large blocks, thus leveraging the market and risk across a large base. It has a professional staff, but has an Oversight Board comprised of City representatives. This Board meets monthly. In most cases the City of Renton has a deductible that ranges from $25,000 to a maximum of $250,000. Introduction 1-5 2003 Comprehensive Annual Financial Report City of Renton, Washington The City maintains a self-insurance program for health and dental coverage for city employees and dependents. The City purchases excess medical coverage from Safeco for cases that exceed $250,000. The City also purchases life and disability insurance from various providers dependent upon the cost. In 2003 the provider was UNUM. Awards and Acknowledgements The City has a long history of acknowledgement for its Comprehensive Annual Financial Report through the peer review program conducted by the Government Finance Officers Association. The dedicated staff of the Finance Division work each day to ensure that the City's financial records always display information in conformance with legal parameters. All members of the division are to be commended for their consistent dedication to excellence in local government finance. In particular, Linda Parks, CPA, the City's accounting manager, directed the production of this year's CAFR. Nancy Violante's assistance was invaluable in this effort. Linda Dixon contributed significantly, being responsible for the statistical section and other elements. Margie Schwarz performed special CAFR support projects. The actual production could not be accomplished without the technical expertise of Beth Haglund, DeAnna Fricke, and Deborah Willard. It is a credit that the citizens of the City of Renton can rely on this report as the definitive discussion of all City financial operations. Sincerely, D1�46,000 Q to Victoria A. Runkle Finance & Information Services Administrator 1-6 Introduction Certificate of Achievement for Excellence in Financial Reporting Presented to City of Renton, Washington For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2002 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. PNCE OFFi� % udl[TE0 STATiS��y 11 AM N S CANADA \,CDR 0 TION President Executive Director City Council Don Persson, President; Terri Briere; Dan Clawson; Randy Corman; Denis Law; oni Nelson, and Marcie Palmer. 425-430-6501 Renton Citizens Mayor Kathy Keolker-Wheeler 425-430-6500 Chief Administrative Officer Jay Covington 425-430-6500 Muncipal Court Judge Terry Jurado 425-430-6550 Community Services Planning/Building/ Economic Development, Dennis Culp Public Works Neighborhoods, and Administrator Gregg Zimmerman, Strategic Planning 425-430-6600 Administrator Alex Pietsch, Administrator 425-430-7394 425-430-6580 Facilities Peter Renner, Director Development Services Economic Development Neil Watts, Director Ben Wolters, Director Parks Leslie Betlach, Director Maintenance ServicesNeighborhoods Michael Stenhouse, Director Recreation Sylvia Allen, Director Transportation Systems Strategic Planning Sandra Meyer, Director Human Services Karen Bergsvik, Manager utility Systems Lys Hornsby, Director Library Vacant, Director Police Fire Human Resources Garry Anderson, Chief A. Lee Wheeler, Chief and Risk Management 425-430-7507 425-430-7501 Michael Webby, Administrator 425-430-7650 Kevin Operations/Support Milosevich, Deputy Chief Patrol Operations Operations Art Larson, Deputy Fire Chief Emergency Response Human Resources Civil Service Commission Patrol Services Administration/ Risk Management Support Services Investigations Larry Rude Deputy Fire Chief Administrative Services Prevention Bureau Staff Services Training Auxiliary Services Disaster Management City of Renton Corporate Organization Structure Administrative, Judicial, and Legal Services 425-430-6500 Mayor's Office Derek Todd City Clerk/Cable Mgr. Bonnie Walton Court Services Joe McGuire, Director Hearing Examiner Fred Kaufman City Attorney Warren Barber Fontes, P.S. Finance and Information Services Victoria Runkle, Administrato 425-430-6858 Finance Vacant, Director Information Services Print and Mail Operations Legislative Building PO Box 40021 Olympia, Washington 98504-0021 INDEPENDENT AUDITOR'S REPORT August 25, 2004 The Honorable Mayor and City Council City of Renton Renton, Washington Washington State Auditor Brian Sonntag (360) 902-0370 FAX (360) 753-0646 TDD Relay 1-800-833-6388 http://,"vw.sao.wa,gov 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, I,(ing County, Washington, as of and for the year ended December 31, 2003, as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. I We conducted our financial audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position 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 December 31, 2003, and the respective changes in financial position and cash flows, where applicable, thereof, for the year then ended in conformity with accounting principles generally accepted in the United States of America. As described in Note 1 to the financial statements, during the year ended December 31, 2003, the City has implemented Governmental Accounting Standard's Board Statement 34, Basic Financial Statements - and Management's Discussion and Analysis for State arid Local Governments, Statement 37, Basic Financial Statements - and Management's Discussion and Analysis for State and Local Governments, Omnibus, Staternent 38, Certain Financial Statement Note Disclosures, and Statement 40, Deposit and Investment Risk Disclosures. The Management's Discussion and Analysis on pages 3-1 through 3-16, and the budgetary comparison information on pages 5-1 through 5-2 are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquires of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the City of Renton's basic financial statements. The accompanying 'Financial information listed as combining financial statements and supplemental information on pages 6-1 through 6-50 is presented for purposes of additional analysis and is not, a required part of the basic financial statements. The combining financial statements and supplemental information have been subjected to auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated, in X11 material respects, in relation to the basic financial statements taken as a whole. The information identified in the table of contents as the Introductory and Statistical Sections is presented for purposes of additional analysis and is not a required pail 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 -express no opinion on them. Sincerely, BRIAN SONNT AG, CGFPA STATE AUDITOR a @ is 2003 Comprehensive Annual Financial Report City of Renton, Washington MANAGEMENT'S DISCUSSION AND ANALYSIS The City of Renton's discussion and analysis provides a narrative overview of the City's financial activities for the fiscal year ended December 31, 2003. The intent of the discussion and analysis is to review the City's financial performance as a whole. This Management's Discussion and Analysis (MD&A) combined with the Transmittal Letter, the Financial Statements, and the Notes to the Financial Statements represents the complete 2003 financial activities for the City of Renton. These are all intended to help the reader understand the City's significant financial issues. This MD&A also provides an overview of the City's financial records. The data in this financial report also identify any material deviations from the financial plan and the adopted budget. Finally, the intent of the MD&A and other financial information is to isolate individual fund issues or concerns. FINANCIAL INFORMATION This is the first year the City prepared its financial records in accordance with what is known as GASB 34 (Government Accounting Standards Board 34). This method of accounting requires a full accounting of all infrastructure reporting. The full benefits of this new standard will not be evident until we complete a second year's financial review in 2004 that will show comparisons. The City's government -wide financial statements were prepared on the full accrual basis of accounting in conformity with generally accepted accounting principles (GAAP). The City's fund financial statements for its major and non -major governmental funds were prepared on the modified accrual basis of accounting in conformity with GAAP. The City's major and non -major enterprise funds, internal service funds and pension funds were accounted for on the accrual basis. The City of Renton, along with all cities, counties, and other governmental entities in Washington, must comply with the Budgeting, Accounting, and Reporting System (BARS) as defined by the Washington State Office of the Auditor (SAO). The SAO audits the financial records of all cities and other governmental units within the State. The City of Renton's financial system integrates financial and administrative controls that ensure the safeguarding of assets and the reliability of financial reports. These controls are designed to provide: 1. reasonable assurance that transactions are executed in accordance to management understanding and approval; 2. reasonable assurance that transactions are executed in accordance to GAAP principles; 3. accountability for control of assets and obligations; and 4. assurance that sufficient reporting and review exists to provide adequate information for analysis and comparability of data. Internal control is a high priority for the City. The State Auditor's Office reviews the City's internal controls, and the City receives and takes action on all the recommendations made. Management's Discussion and Analysis 3-1 2003 Comprehensive Annual Financial Report City of Renton, Washington The City maintains strong budgetary controls in order to ensure compliance with legal provisions embodied in the annual appropriated budget as approved by the City Council. The City Council must authorize any budget increase or decrease to any Fund. Financial Highlights • The City's total assets as of December 31, 2003, exceeded liabilities by over $315 million. • As of December 31, 2003, the City's Governmental Activities reported net assets of $137,876,104. Of this total, $41,669,232 is defined as unrestricted and can be used for needs the Mayor and Council deem necessary. These monies are intended to provide a cushion against significant economic downturns in revenues and to maintain sufficient working capital and cash flow to meet daily financial needs. • Investments in capital assets comprise $89,360,313 of the $137,876,104 in Governmental Activities net assets. • The business type activities have total net assets of $177,821,594. Over 89 percent of this total, $158,886,497, represents the City's investments in capital assets. The balance of $18 million is used to meet day-to-day cash flow requirements, and to ensure we can meet all obligations of the utilities and other Funds if the revenues do not meet expectations. • The City's total principal and interest on outstanding debt as of December 31, 2003, was $73.4 million. Of this amount 34 percent, or $25.2 million, is dedicated to the water works projects. Another $2.6 is for outstanding bonds for Senior Housing. These bonds have a special taxing authority. The Maplewood Golf Course has $3.8 million outstanding in debt service. The balance of $41.8 million of our debt — is dedicated for general govern- mental purposes, including the purchase of City Hall, the construction of the downtown parking garage and the replacement of a fire station, our share of a regional E-911 Communications Center and other small projects, including mini -bonds sold for fire equipment. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis provides an introduction and overview to the City of Renton's basic financial statements. The basic financial statements are comprised of three components: 1. Government -wide financial statements; 2. Fund financial statements; and 3. Notes to the financial statements. The graphic representation below illustrates the required components of the City's annual financial report and how the required parts are arranged and relate to one another. This illustration helps explain the City's financial presentation in 2003. This is the first year the City of Renton is mandated to prepare its financial statements in conformance to a new standard commonly referred to as Governmental Accounting Standards Board 34 (GASB 34). This graphic representation should be used in conjunction with the following explanations to help guide the reader in understanding the financial condition of the City of Renton. 3-2 Management's Discussion and Analysis 2003 Comprehensive Annual Financial Report Figure 1 REQUIRED COMPONENTS OF THE ANNUAL FINANCIAL REPORT City of Renton, Washington Management Discussion ¢� and Analysis (required supplementary information) (new) Government -wide Financial Statements (new) w Fund Financial Statements (refocused) Notes to the Financial Statements (expanded/restructured) Required Supplementary Information (other than MD&A) In addition to the required components shown in Figure 1, the City's annual report also includes other voluntary supplementary information. The most significant section is the Combining Statements. These provide Balance Sheets, Statement of Revenues, Expenditures, and Changes in Fund Balances with Budget -to -Actual comparisons, Statement of Net Assets, and Cash Flows for all Non -Major Funds. The next section of information, the Statistical Section, is in the same format as previous year's information. This section provides a ten-year view of the City's revenue, expenditures, debt obligations and capacity, the City's largest taxpayers and those with the largest employment within the City of Renton. This section provides a long-term perspective on the City's economy. Management's Discussion and Analysis 3-3 2003 Comprehensive Annual Financial Report City of Renton, Washington BASIC FINANCIAL STATEMENTS Government -Wide Financial Statements provide readers with a broad overview of the City of Renton's finances in a manner similar to a private sector business. They provide both short-term and long-term information about the City's overall financial status. The government -wide statements distinguish between functions of the City that are principally supported by taxes and intergovernmental revenues (referred to as "governmental activities"), from functions that are intended to recover all or a significant portion of their costs through user fees and charges (referred to as "business -type activities"). The governmental activities of the City include a full range of local government services provided to the public, such as police and fire protection; road maintenance and construction; community planning and economic development; libraries, parks and recreational opportunities; and other community services. The business -type activities of the City include water, sewer, surface water, solid waste management and services, a golf course, and an airport. The Statement of Net Assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. This statement, for the first time, combines and consolidates governmental funds' current financial resources (short-term available resources) with capital assets (note: infrastructure incurred before January 1, 2003, will appear in future CAFRs) and long-term obligations, primarily bond debt. The Statement of Net Assets serves a purpose similar to that of the Balance Sheet of a private -sector business. Over time, increases or decreases in net assets may serve as one indicator of whether the financial position of the City is improving or deteriorating. Other indicators to consider when evaluating the financial position of the City include 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, water infrastructure.) The Statement of Activities focuses upon both the gross and net cost of various activities that are provided by the government's general tax and other revenues. This is intended to summarize and simplify the user's analysis of cost to various governmental services and/or subsidy to various business -type activities. By separating program revenue from general revenue, users of the financial statements can identify the extent to which each program relies on taxes for funding. The Governmental Activities reflect the City's basic functions: General Government; Security of Person and Property; Physical Environment; Mental and Physical Health; and Culture and Recreation. Property, sales, and utility taxes finance the majority of these functions. All changes in net assets are reported using the accrual basis of accounting, which is similar to the accounting used in the private sector. The accrual basis of accounting requires that revenues are reported when earned and expenses are reported when incurred, no matter when the revenue will actually be received or the obligation will be paid. For example, property taxes are shown as a receivable as revenue even though some amount of these taxes will not be available to the City for several years. All unpaid vendor obligations are illustrated as an accounts payable obligation as of December 31. 3-4 Management's Discussion and Analysis 2003 Comprehensive Annual Financial Report City of Renton, Washington Fund Financial Statements Traditional users of governmental financial statements will find the Fund financial statements familiar. However, GASB 34 states the focus must now be on Major Funds. A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities and objectives. The City uses funds to ensure and demonstrate fiscal integrity and compliance with finance related legal requirements. There are three types of funds: governmental, proprietary, and fiduciary. A Major Fund has three elements as defined by GASB 34: • Total assets, liabilities, revenues, or expenditures/expenses of individual governmental or enterprise funds are at least ten percent of the corresponding total (assets, liabilities, etc) for all funds of that category or type - i.e., governmental, proprietary or fiduciary; and • Total assets, liabilities, revenues or expenditures/expenses of the individual governmental fund or enterprise fund are at least five percent of the corresponding total for all govern- mental and enterprise funds combined; or • Any other governmental or enterprise fund that the government's officials believe is partic- ularly important. Governmental Funds present most of a government's tax -supported activities. The Proprietary Funds describe and financially manage the government's business -type activities, where all or part of the activities' costs are supported by fees and charges that are paid directly by those who benefit from the activities. Fiduciary Funds control resources held by the government as a trustee or agent for parties outside of the government. The resources of Fiduciary Funds cannot be used to support the government's own programs. Governmental Funds The Governmental Fund Balance Sheet and Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances present separate columns of financial data for the General Fund and the Park Fund. These comprise the City's major governmental funds. Data from the remaining governmental funds are combined and presented in a single, aggregated column in the fund statements. Individual fund data for each of the non -major governmental funds is provided in the form of combining statements. Governmental Funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. The focus of governmental fund financial statements is on near-term inflows and outflows of available 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 be spent in the near future to finance City services. Because the focus of governmental fund financial statements is a narrower view than that of the government -wide financial statements, it is useful to compare information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. This gives the reader a better understanding of the long- term impact of the government's near-term financing decisions. The Governmental Fund Balance Sheet and the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Management's Discussion and Analysis 3-5 2003 Comprehensive Annual Financial Report City of Renton, Washington Balances provide reconciliation to the governmental activities column in the government -wide statements to facilitate this comparison. 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. General Fund budget variances are reviewed later in this discussion and analysis. Proprietary Funds These types of funds consist of two types of funds: Enterprise and Internal Service. They have always been operated as private business activity. Enterprise Funds are used to report the same functions as business -type activities in the government -wide financial statements. Internal Service Funds are used to report activities that provide supplies and services to various City departments and to accumulate and allocate the associated costs of providing these services to the various functions. The revenues and expenses of internal service funds that are duplicated in other Funds are eliminated in the government -wide statements. Because the remaining balances primarily benefit governmental, rather than business -type activities, they have been included within governmental activities in the government -wide statements. The City of Renton has two major proprietary funds: Waterworks Utility and Solid Waste. All other activities are combined in Other Enterprise Funds. Governmental Activities Internal Service Funds are reported separately in this section. The Proprietary Fund Balance Sheet and the Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Equity present separate columns of financial data for the Waterworks Utility and Solid Waste. Data from the remaining Enterprise Funds are combined and presented in a single, aggregated column in the fund statements. Governmental Activities Internal Service Funds are reported separately in this section. Proprietary Fund statements provide the same type of information as the government -wide financial statements, only in more detail, since both apply the accrual basis of accounting. In comparing the total assets and total liabilities between the two statements, you will notice only slight differences. One notable difference is that the "due from other funds" (asset) and the "due to other funds" (liability) in the Proprietary Fund Statements are combined in a single line called "internal balances" in the asset section of the government -wide Statement of Net Assets. 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. All of the City's fiduciary activities are reported in a separate Statement of Fiduciary Net Assets and a Statement of Changes in Fiduciary Net Assets. 3-6 Management's Discussion and Analysis 2003 Comprehensive Annual Financial Report City of Renton, Washington Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided, and are an integral part of the government -wide and fund financial statements. Combining statements for non -major governmental and enterprise funds, as well as internal service funds, are presented immediately following the required supplementary information on pensions. GOVERNMENT -WIDE FINANCIAL ANALYSIS The overall financial position has improved for the City of Renton over the prior year. Table 2 - Changes in Net Assets reports an increase in total net assets of $23,109,912. Statement of Net Assets As noted earlier, changes in net assets may serve as a useful indicator of a government's financial position. The City's net assets total $315,697,698 as of December 31, 2003. Table 1 is a condensed version of the Government -Wide Statement of Net Assets. Because this is the City's first year reporting on a government -wide basis, prior year comparable data is not available. In accordance with the GASB 34, the City is not required to restate prior periods for purposes of providing comparative data in the first period of implementing the statement. Comparable data will be available in the 2004 Comprehensive Annual Finance Report. Table 1 NET ASSETS NET ASSETS Governmental Business -type Total Invested in capital assets, net of Activities Activities Primary related debt 2003 2003 Government Restricted 6,846,559 3,048,210 9,894,769 Current and other assets $ 55,651,193 $ 21,169,442 $ 76,820,635 Capital Assets (net of accumulated 123,873,908 194,185,361 318,059,269 depreciation) TOTAL ASSETS $179,525,101 $215,354,803 $394,879,904 Long-term liabilities 32,915,102 33,085,652 66,000,754 Other liabilities 8,733,895 4,447,557 13,181,452 TOTAL LIABILITIES $41,648,997 $37,533,209 $79,182,206 NET ASSETS Invested in capital assets, net of $89,360,313 $158,886,497 $248,246,810 related debt Restricted 6,846,559 3,048,210 9,894,769 Unrestricted 41,669,232 15,886,887 57,556,119 TOTAL NET ASSETS $137,876,104 $177,821,594 $315,697,698 Management's Discussion and Analysis 3-7 2003 Comprehensive Annual Financial Report City of Renton, Washington The majority of the City's net assets, 79 percent, are investments in capital assets — streets, drainage, construction in progress, buildings, equipment, water and sewer pipes — less any related outstanding debt used to acquire these assets. The City's capital assets are used to provide services to citizens. It should be noted that although the investment in capital assets is reported net of related debt, resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. $375,000,000 $300,000,000 $225,000,000 $150,000,000 $75,000,000 $0 Chart 1 CATEGORIES OF NET ASSETS Governmental Business Type Total Primary Activities Activities Government Restricted assets, representing resources that are subject to external restrictions on how they may be used, equate to 3.13 percent of total net assets. The remaining balance (unrestricted net assets) of $57.6 million may be used to meet the City's ongoing obligations. Chart 1 provides a graphical comparison of the three categories of net assets. As of December 31, 2003, the City reports positive balances in all three categories of net assets, for the government as a whole, as well as for separate governmental and business -type activities. Statement of Change in Net Assets The City's total net assets (before prior period adjustments and the change in accounting principal) increased in 2003 by $23,109,913. Governmental activities generated 54 percent of this total or $12.5 million, while business -type activities generated $10.6 million of this total. 3-8 Management's Discussion and Analysis 2003 Comprehensive Annual Financial Report City of Renton, Washington The chart below (Chart 2) illustrates the various sources and amounts of revenue received by the government as a whole. Table 2 follows the Chart. This is a condensed version of the Statement of Activities for the City. As noted earlier, prior year comparable data is not available for government -wide statements. Comparable data will be provided in the 2004 Comprehensive Annual Financial Report. Sa Property Taxes 16% Gants/1 Chart 2 2003 TOTAL REVENUES BY SOURCE Interest/Investment earnings 1% Operating Gants & Contributions 3% )r Services oda Management's Discussion and Analysis 3-9 2003 Comprehensive Annual Financial Report Table 2 CHANGE OF NET ASSETS City of Renton, Washington Property Taxes Governmental Activities 2003 Business -Type Activities 2003 Total Primary Government Revenues 17,334,831 Business Taxes 10,895,130 Program Revenues: Other Taxes 5,449,877 5,449,877 Charges for Services $27,643,590 $37,077,258 $64,720,848 Operating Grants & Contributions 3,732,443 222,193 3,954,636 Capital Grants & Contributions 1,094,764 6,600,471 7,695,235 General Revenues: 4,221,713 4,221,713 Property Taxes 19,520,575 19,520,575 Sales Taxes 17,334,831 17,334,831 Business Taxes 10,895,130 10,895,130 Other Taxes 5,449,877 5,449,877 Penalties and Interest 5,415 5,415 Interest and Investment earnings 1,081,398 242,055 1,323,453 Miscellaneous 312,867 369,513 682,380 TOTAL REVENUES $87,070,890 $44,511,490 $131,582,380 Program Expenses Governmental Activities: General Government Services $24,365,244 $24,365,244 Judicial 1,258,956 1,258,956 Security of persons & property 26,238,548 26,238,548 Physical Environment 2,013,239 2,013,239 Transportation 4,221,713 4,221,713 Economic Environment 5,886,795 5,886,795 Mental and Physical Health 21,646 21,646 Culture and Recreation 8,689,666 8,689,666 Interest on Long -Term Debt 1,827,464 1,827,464 Business -type Activities Water $22,381,464 22,381,464 Airport 1,219,465 1,219,465 Solid Waste 8,516,598 8,516,598 Golf 1,831,670 1,831,670 TOTAL EXPENSES $74,523,271 $33,949,197 $108,472,467 Increase in net assets before Transfers Transfers $ (40,000) $ 40,000 $_0_ Increase -0- Increase in net assets Net assets —beginning 125,368,485 167,219,301 292,587,786 Prior period adjustments Change in accounting principles NET ASSETS ENDING $137,876,104 $177,821,594 $315,697,698 3-10 Management's Discussion and Analysis 2003 Comprehensive Annual Financial Report City of Renton, Washington Over 69 percent of the City of Renton's total activities are for general governmental activities such as providing police, fire, parks, libraries, recreational, building safety and planning services. The largest Business Type activities Chart 3 include water, sewer, surface water, 2003 COMPARISON OF TOTAL GOVERNMENTAL VS solid waste and golf activities. BUSINESS TYPE EXPENSES Governmental Activities Analysis Business GovernmentalType Governmental activities cost a total Activities Activities of $74.5 million in 2003. Of this 69% 31% amount, $43 million was paid for either by those who directly benefited from the programs or by other governments and organizations that subsidized certain programs with grants and contributions. The net expense (total expenses less program revenues) of $31 million was the cost of governmental services City taxpayers primarily paid through various taxes. Chart 4 portrays the cost of each of the City's major governmental programs along with each program's generated revenues — fees and intergovernmental revenues specifically related to that program). $27,000,000 $22,500,000 $18,000,000 $13,500,000 $9,000,000 $4,500,000 $0 Chart 4 GOVERNMENTAL ACTIVITIES PROGRAM REVENUES AND EXPENSES N e � w wti0, `, cj;w ��� -s, obi S� 4 Seo Management's Discussion and Analysis 3-11 2003 Comprehensive Annual Financial Report City of Renton, Washington The following chart, Chart 5, depicts the sources of revenues that fund governmental activities. Approximately 61 percent are from various taxes. Charges for services generate 32 percent of the total revenue for general governmental activities. Retail 20° Chart 5 GOVERNMENTAL ACTIVITIES REVENUES BY SOURCE Business Taxes 13% Property Tax Capital Grants 1)1)0/ 6% Charges for Services Capital Grants 32% 4% Interest 1% Business -Type Activities Analysis Charts 6 and 7 present the same information on business -type activities as illustrated for general governmental type activities. Chart 6 shows the expense of each of the City's business -type programs along with each program's generated revenues — fees and intergovernmental revenues specifically related to that program. $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Chart 6 BUSINESS TYPE ACTIVITIES PROGRAM REVENUES AND EXPENSES Waterworks Airport Solid Waste Golf Course 3-12 Management's Discussion and Analysis 2003 Comprehensive Annual Financial Report City of Renton, Washington The Waterworks Utility had a positive net change of $7.4 million at the end of 2003. The City generated nearly $29.8 million in various fees for services from waterworks activities above the $22.4 million in expenses. The Airport's total expenses were $1.2 million. It had a large capital program and received over $2.5 million from various federal grants for work started in 2003 and scheduled for completion in 2004. By the end of the year, the Airport generated a total of $2 million above expenses. The Solid Waste Utility's revenues and expenses were nearly identical with $8.4 million generated from fees for services and $178,000 in grants. The total expenses were $8.5 million. The Golf Course generated a total of $2.1 million in green fees, driving range charges, and a host of other user fees. The total expenses for the Golf Course were $1.8 million. Thus, the Golf Course generated a positive net asset change of $339,000 for the year. Chart 7 BUSINESS TYPE ACTIVITIES REVENUES BY SOURCES Miscellaneous Interest Grants 1% 15% 1% 'harges for Services 83% Business -type activities are supported primarily from charges for services. In the City of Renton, over $37 million was generated from charges for services in the business -type activities. These comprise 83 percent of the total financial support for these activities. Grants are generally higher in 2003 than normal levels as the Airport received a significant amount from the Federal Aviation Administration for capital projects. The Airport accepted over $2.5 million for capital projects. This is 38 percent of the City's total grant acceptances of $6.6 million. FINANCIAL ANALYSIS OF THE CITY'S FUNDS Governmental Funds Analysis At year-end, the governmental funds reported a combined fund balance of $36.25 million (refer to the Governmental Funds Balance Sheet on Page 4-7). This is $7.5 million less than the beginning of the year balance of $43.7 million. As noted in the Government -Wide Financial Analysis section above, net assets for governmental activities increased by $12.5 million. The difference is due primarily to the way capital assets are reported. In the fund financial statements, capital Management's Discussion and Analysis 3-13 2003 Comprehensive Annual Financial Report City of Renton, Washington expenditures are reported as current expenditures, thereby directly reducing available resources (fund balances). At the government -wide level of reporting, the same capital expenditures are capitalized and thereby included in the net asset balance. The total General Fund Balance of $6.8 million is classified as unreserved. The General Fund experienced an increase of $2.8 million in fund balance. This was due in large part to city departments under expending their 2003 budget allocations. Some revenues exceeded our estimates. In particular, sales and property taxes were higher than budgeted. Sales taxes were over $400,000 more than expected. Admission taxes were higher than anticipated because Cirque Du Soliel presented one of their traveling shows in Renton for over six weeks. All spending was no less than one percent below the budgeted levels. All departments analyze and ensure that they spend below their budgetary limits each year. The source of most savings is the time lag associated with hiring vacant positions. The City did not have the policy to leave a position vacant in 2003 to ensure budgetary savings. One major change in the General Funds is the accounting for labor contractual obligations. At the beginning of 2003, the City had not yet completed the negotiation of all labor contracts. Thus, appropriation authority was held in the general government departments until the contracts were completed. During the year, the City passed two ordinances moving the appropriation authority from general governmental to the specific purposes. This change, in particular, is quite noticeable in the public safety expenditures. They increase by over a million dollars between original budget and final budget limits. However, the appropriation authority decreased general governmental activities and increased all activities throughout the City's budget. Business Type Funds Analysis There were no extraordinary events in any of the business type funds. These funds also spent below their budgetary limits. The large savings in the water utility was due to the fact the capital expenditures are never spent as fast as planned due to weather, regulatory compliance or other issues outside the utility's management influence. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The City of Renton's investment in capital assets, including construction in progress, for its governmental and business -type activities as of December 31, 2003, amounts to $318 million as presented on the following table. 3-14 Management's Discussion and Analysis 2003 Comprehensive Annual Financial Report City of Renton, Washington Table 3 CAPITAL ASSETS (Net of Accumulated Depreciation) General Activities Business Type Activities Total Activities 1 / 1 /2003 12/31/2003 1 / 1 /2003 12/1/2003 1/1/2003 12/1/2003 Land $ 28,525,944 $ 31,990,429 $ 6,976,321 $ 6,976,321 $ 35,502,265 $ 38,966,750 Construction in Progress 11,474,723 17,897,412 6,167,202 9,619,858 17,641,925 27,517,270 Bldgs and Structures 14,150,253 22,727,062 11,214,532 14,405,095 25,364,785 37,132,157 Other Improvements 10,051,886 17,007,992 159,900,696 162,117,789 169,952,582 179,125,781 Machinery and Equipment 34,719,400 34,251,013 1,119,010 1,066,298 35,838,410 35,317,311 TOTAL $ 98,922,206 $ 123,873,908 $ 185,377,761 $ 194,185,361 $ 284,299,967 $ 318,059,269 In compliance with GASB 34, the City added the estimated historical cost of general government infrastructure assets and related estimated accumulated depreciation to its books in 2003. As shown in Table 3, the beginning net balance of these assets was $98 million. General government infrastructure includes streets, bridges, overlays, and traffic controls. Other major governmental capital asset activity for the year included (in millions): • Aquatics Center $3.7 • Downtown Parking Garage $2.3 • Pavilion Building $2.0 • Fire Station 12 $3.7 • Oakesdale Street Improvements $2.1 • Lake Washington Blvd Street Improvements $1.8 • Major business -type capital asset activity included (in millions): • General Water Pipe Improvements $2.2 • Airport Improvements $3.0 More detailed information about the City's capital assets is presented in Note 5 titled "Capital Assets and Depreciation" in the Notes to the Financial Statements. Debt Administration As shown in Table 4, the City's total outstanding debt at December 31, 2003, was $68.9 million. This was a net decrease (new issues less principal payments and refunding) of $4.3 million. Totals exclude operating leases and accrued employee benefits. Table 4 OUTSTANDING DEBT General Activities Business Type Activities Total Activities 1 / 1 /2003 12/31/2003 1 / 1 /2003 12/1/2003 1/1/2003 12/1/2003 General Activities Debt $33,797,023 $32,245,982 $33,797,023 $32,245,982 Revenue Debt $31,230,000 $29,070,000 31,230,000 29,070,000 Other Long Term Debt 8,229,373 7,637,552 8,229,373 7,637,552 TOTAL $33,797,023 $32,245,982 $39,459,373 $36,707,552 $73,256,396 $68,953,534 Management's Discussion and Analysis 3-15 2003 Comprehensive Annual Financial Report City of Renton, Washington During 2003, the City took advantage of lower interest rates by refunding all outstanding 1993 and 1994 Water/Sewer Bonds. By refinancing this debt, the City will reduce its debt service payments by $601,198 over the next ten years. The City of Renton maintains an A+ rating from both Fitch and Standard and Poor's rating agencies for its General Obligation Debt. The Water & Sewer Revenue Bond ratings are AA - from both these rating agencies. More detailed information about the City's long-term debt can be found in Note 14 to the financial statements. BUDGETARY HIGHLIGHTS The following is a brief review of the budgeting changes from the adopted budget to the amended final budget and from the amended final budget to the actual financial statements for the general fund. Please note the budget to actual comparisons for the general fund and major special revenue funds are in the Required Supplemental Information section of the Financial Statement. All other budget comparisons begin on page 6-19. • Permit collections were higher than anticipated. Actual revenues were significantly higher than the budget in licenses and permits. • The budget and actual revenue increase of $1,000,000 in charges for services resulted from monies collected for an environmental impact statement. • Additional monies were budgeted and transferred out to pay for additional transportation projects. FUTURE YEAR'S BUDGETARY IMPACTS The following are some of the factors the City of Renton is considering as it prepares future budgets. • Initiative 747, limiting the property tax levy to one percent will require the City to change the service levels or the type of services provided. In 2004 over $500,000 was eliminated from various line items. This will be an ongoing practice as labor costs are exceeding the overall revenue growth rate. • In 2004 the City is using approximately one million dollars from reserves for general gov- ernmental activities capital expenditures. • The City has labor contracts with all of its bargaining units through 2005. These contracts will pay a three percent annual Cost of Living Adjustment in exchange for participating in containing medical costs. • Further property tax initiatives or the City's loss of sales tax revenue due to any change in allocation of sales tax will require the City to significantly reduce general governmental activities. 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 the Finance & Information Services Department at 1055 South Grady Way, Renton WA 98055. 3-16 Management's Discussion and Analysis 2003 Comprehensive Annual Financial Report STATEMENT OF NET ASSETS December 31. 2003 City of Renton, Washington The notes to the financial statements are an integral part of this statement. Basic Financial Statements 4-1 Primary Government Governmental Business -type Activities Activities Total ASSETS Cash and cash equivalents $ 23,379,344 $ 10,109,427 $ 33,488,771 Investments 23,955,925 1,655,491 25,611,416 Receivables (net of allowance for uncollectibles) 3,634,548 5,923,667 9,558,215 Internal balances 9,465 (9,465) - Inventories - 380,787 380,787 Prepayments 88,260 - 88,260 Other non-current assets 4,583,651 61,325 4,644,976 Restricted assets: Cash and cash equivalents - 3,048,210 3,048,210 Capital assets (net of accumulated depreciation) 123,873,908 194,185,361 318,059,269 Total assets $ 179,525,101 $ 215,354,803 $ 394,879,904 LIABILITIES Accounts payable and other current liabilities $ 4,852,910 $ 2,106,223 $ 6,959,133 Matured bonds and interest payable 167,334 2,213,212 2,380,546 Unearned revenue 89,492 128,122 217,614 Non-current liabilities: Due within one year 3,624,159 - 3,624,159 Due in more than one year 32,915,102 33,085,652 66,000,754 Total liabilities $ 41,648,997 $ 37,533,209 $ 79,182,206 NET ASSETS Investment in capital assets, net of related debt $ 89,360,313 $ 158,886,497 $ 248,246,810 Restricted for: Tourism 256,958 - 256,958 Grant programs 55,077 55,077 Construction projects 6,504,524 - 6,504,524 Debt service - 3,048,210 3,048,210 Unrestricted 41,699,232 15,886,887 57,586,119 Total net assets $ 137,876,104 $ 177,821,594 $ 315,697,698 The notes to the financial statements are an integral part of this statement. Basic Financial Statements 4-1 2003 Comprehensive Annual Financial Report City of Renton, Washington STATEMENT OF ACTIV ITIES For the Year Ended December 31, 2003 Page 1 of 2 The notes to the financial statements are an integral part of this statement. 4-2 Basic Financial Statements Program Revenues Operating Charges for Grants and Capital Grant Functions/Programs Expenses Services Contributions & Contributions Primary government: Governmental activities: General government $ 24,365,244 $ 16,716,472 $ 3,357,986 $ 10,325 Judicial 1,258,956 1,287,901 - - Security of persons and property 26,238,548 929,780 321,019 Physical environment 2,013,239 759,700 - - Transportation 4,221,713 1,519,383 - 958,222 Economic environment 5,886,795 4,969,475 15,000 - Mental and physical health 21,646 - 8,758 76,217 Culture and recreation 8,689,666 1,460,879 29,680 50,000 Interest on long-term debt 1,827,464 - - - Total governmental activities $ 74,523,271 $ 27,643,590 $ 3,732,443 $ 1,094,764 Business -type activities: Waterworks utility $ 22,381,464 $ 25,778,754 $ - $ 4,076,702 Airport 1,219,465 733,115 44,232 2,523,769 Solid waste utility 8,516,598 8,394,478 177,961 - Golf course 1,831,670 2,170,911 - Total business -type activities $ 33,949,197 $ 37,077,258 $ 222,193 $ 6,600,471 Total primary government $ 108,472,468 $ 64,720,848 $ 3,954,636 $ 7,695,235 General revenues: Taxes: Property taxes Timber taxes Retail sales taxes Business taxes Excise taxes Penalties and interest Interest and investment earnings Miscellaneous Transfers Total general revenues and transfers Change in net assets Net assets - beginning (restated) Net assets - ending The notes to the financial statements are an integral part of this statement. 4-2 Basic Financial Statements 2003 Comprehensive Annual Financial Report Page 2 of 2 Net(Expense)Revenue and Changes in Net Assets Primary Government Governmental Business -type $ Activities Activities Total $ (4,280,461) 17,334,831 $ (4,280,461) 28,945 10,895,130 28,945 (24,987,749) (24,987,749) (1,253,539) (1,253,539) (1,744,108) 1,081,398 (1,744,108) (902,320) 1,323,453 312,867 (902,320) 63,329 682,380 63,329 (7,149,107) 40,000 (7,149,107) (1,827,464) $ 651,568 (1,827,464) $ (42,052,474) 55,211,661 $ (42,052,474) $ 7,473,992 $ 7,473,992 23,109,913 2,081,651 $ 125,368,484 2,081,651 167,219,301 55,841 55,841 339,241 $ 339,241 $ 9,950,725 $ 9,950,725 $ (42,052,474) $ 9,950,725 $ (32,101,749) $ 19,520,575 $ $ 19,520,575 17,334,831 17,334,831 10,895,130 10,895,130 5,449,877 5,449,877 5,415 5,415 1,081,398 242,055 1,323,453 312,867 369,513 682,380 (40,000) 40,000 - $ 54,560,093 $ 651,568 $ 55,211,661 $ 12,507,620 $ 10,602,293 $ 23,109,913 $ 125,368,484 $ 167,219,301 $ 292,587,785 $ 137,876,104 $ 177,821,594 $ 315,697,698 City of Renton, Washington The notes to the financial statements are an integral part of this statement. Basic Financial Statements 4-3 2003 Comprehensive Annual Financial Report City of Renton, Washington BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2003 Page 1 of 2 The notes to the financial statements are an integral part of this statement. 4-4 Basic Financial Statements OTHER TOTAL GOVERNMENTAL GOVERNMENTAL GENERAL PARKS FUNDS FUNDS ASSETS Cash & cash equivalents $ 2,376,457 $ 803,714 $ 13,474,611 $ 16,654,782 Cash with fiscal agent - - 22,000 22,000 Investments 4,000,000 1,000, 391 14,605, 534 19,605, 925 Receivables (net of allowances) Taxes 824,062 278,781 571,399 1,674,242 Customer accounts 907,416 36,746 52,266 996,428 Accrued interest & penalty 59,210 15,976 248,301 323,487 Special assessments - - 5,495 5,495 Due from other funds 5,700 41,403 47,103 Due from other governmental units 165,636 210,081 375,717 Prepayments 8,000 - 8,000 Restricted assets: Advances due from other funds 75,000 880,000 955,000 Special Assessments Deferred - - 87,568 87,568 TOTAL ASSETS $ 8,421,481 $ 2,135,608 $ 30,198,658 $ 40,755,747 The notes to the financial statements are an integral part of this statement. 4-4 Basic Financial Statements 2003 Comprehensive Annual Financial Report LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ Taxes payable Retainage payable Due to other funds Due to other governmental units Matured interest payable Custodial accounts Deposits Deferred revenue Accrued employee leave payable Interfund advances - non-current Total liabilities $ Fund balances Reserved for: Advances to other funds Prepaid items Unreserved reported in: General fund Special revenue funds Debt service funds Capital project funds Total fund balances $ TOTAL LIABILITIES AND FUND BALANCES $ BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2003 Page 2 of 2 City of Renton, Washington The notes to the financial statements are an integral part of this statement. Basic Financial Statements OTHER TOTAL GOVERNMENTAL GOVERNMENTAL GENERAL PARKS FUNDS FUNDS 188,537 $ 127,854 $ 651,395 $ 967,786 5,592 10,536 30,737 46,865 - - 909,982 909,982 568 614 37,699 38,881 46,273 - - 46,273 - - 22,000 22,000 59,884 21,200 - 81,084 24,739 - - 24,739 1,002,727 - 95,696 1,098,423 251,797 31,930 28,951 312,678 - - 955,000 955,000 1,580,117 $ 192,134 $ 2,731,460 $ 4,503,711 75,000 - 880,000 955,000 8,000 - 8,000 6,758,364 - - 6,758,364 - 1,943,474 2,042,443 3,985,917 - 1,916,243 1,916,243 - - 22,628,512 22,628,512 6,841,364 $ 1,943,474 $ 27,467,198 $ 36,252,036 8,421,481 $ 2,135,608 $ 30,198,658 $ 40,755,747 The notes to the financial statements are an integral part of this statement. Basic Financial Statements 2003 Comprehensive Annual Financial Report RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS December 31, 2003 FUND BALANCES - TOTAL GOVERNMENTAL FUNDS Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. Capital assets (net) The focus of governmental funds is on short-term financing, assets are offset by deferred revenue and are not included in fund balances. Deferred revenue Long-term liabilities, including bonds payable are not due and payable in the current period and therefore are not reported in the governmental funds. Interest payable Long-term liabilities Internal service funds are used by management to charge the costs of certain activities to individual funds. Total assets and liabilities of the internal service funds that are reported with governmental activities, less capital assets reported above NET ASSETS OF GOVERNMENTAL ACTIVITIES The notes to the financial statements are an integral part of this statement. 4-6 City of Renton, Washington $ 36,252,036 $ 126,264,559 $ 1,008,071 $ (176,590) $ 8,539,259 $ 137,876,104 Basic Financial Statements 2003 Comprehensive Annual Financial Report City of Renton, Washington STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS December 31, 2003 The notes to the financial statements are an integral part of this statement. Basic Financial Statements :,d1 OTHER TOTAL GOVERNMENTAL GOVERNMENTAL GENERAL PARKS FUNDS FUNDS REVENUES Taxes $ 35,320,008 $ 8,012,174 $ 10,390,140 $ 53,722,322 Licenses and permits 2,562,807 - 1,664,076 4,226,883 Intergovernmental revenues 2,127,364 - 2,406,180 4,533,544 Charges for services 2,740,465 1,420,314 1,855,925 6,016,704 Fines and forfeits 1,014,382 - 41,182 1,055,564 Interfund revenues 2,536,155 945,955 3,482,110 Special assessments - - 295,673 295,673 Contributions 61,356 131,643 62,103 255,102 Interest 469,994 34,216 577,210 1,081,420 Miscellaneous revenues 38,663 1,454 197 40,314 TOTAL REVENUES $ 46,871,194 $ 9,599,801 $ 18,238,641 $ 74,709,636 EXPENDITURES Current: General government $ 10,791,833 $ 2,419,969 $ 72,153 $ 13,283,955 Security of persons and property 26,029,354 - - 26,029,354 Physical environment 2,015,562 - 2,015,562 Transportation - - 4,461,387 4,461,387 Economic environment 3,600,630 478,982 533,975 4,613,587 Mental & physical health 10,368 - - 10,368 Culture & recreation - 6,090,337 1,495,599 7,585,936 Capital outlay 29,348 - 21,060,186 21,089,534 Debt service: Principal payment - 1,417,042 1,417,042 Interest payment - - 1,833,102 1,833,102 TOTAL EXPENDITURES $ 42,477,095 $ 8,989,288 $ 30,873,444 $ 82,339,827 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 4,394,099 $ 610,513 $ (12,634,803) $ (7,630,191) OTHER FINANCING SOURCES (USES) Transfer in $ - $ - $ 3,511,700 $ 3,511,700 Transfer (out) (1,575,000) (1,976,700) (3,551,700) Sale of capital assets 19,129 152,120 171,249 TOTAL OTHER FINANCE SOURCES (USES) $ (1,555,871) $ - $ 1,687,120 $ 131,249 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ 2,838,228 $ 610,513 $ (10,947,683) $ (7,498,942) FUND BALANCE JANUARY 1 4,003,136 1,419,405 38,975,099 44,397,640 Prior Period Adjustment - (86,444) (560,218) (646,662) FUND BALANCES JANUARY 1 RESTATED $ 4,003,136 $ 1,332,961 $ 38,414,881 $ 43,750,978 FUND BALANCE DECEMBER 31 $ 6,841,364 $ 1,943,474 $ 27,467,198 $ 36,252,036 The notes to the financial statements are an integral part of this statement. Basic Financial Statements :,d1 2003 Comprehensive Annual Financial Report City of Renton, Washington RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES GOVERNMENTAL FUNDS For the Year Ended December 31, 2003 NET CHANGES IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS Amounts reported for governmental activities in the statement of activities are different because: Prior Period Adjustments Governmental funds report capital outlays as expenditures, however, in the statement of activities, the cost of those assets are depreciated over their estimated useful lives. Expenditures for capital assets Less current year depreciation Repayment of bond principal is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. Loan or bond proceeds provide current financial resources to governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. Bond proceeds Principal payments Some revenues or expenditures reported in the statement of activities are not yet available or expensed and therefore are not reported as revenue or expenses in governmental funds. Internal service funds or activities are used by management to charge the costs of certain activities to individual funds. The net (expense) of the internal service fund and internal balances reported with governmental activities. CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ (5,583,675) $ 28,253,911 (2,973,468) 1,417,042 $ 140,869 $ (1,248,117) The notes to the financial statements are an integral part of this statement. $ (7,498,942) $ 12,507,620 4-8 Basic Financial Statements 2003 Comprehensive Annual Financial Report ASSETS Current assets: Cash & cash equivalents Investments at fair value Receivables (net of allowances): Customer accounts Special assessments - current Interest - investments Due from other funds Due from other governmental units Inventory of materials and supplies Prepayments Total current assets Restricted assets: Cash & residual investments at FMV Total restricted assets Notes receivable - non-current Special assessments deferred Capital assets (net) Deferred charges and other assets TOTAL ASSETS City of Renton, Washington STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31, 2003 Page 1 of 2 BUSINESS -TYPE ACTIVITIES ENTERPRISE FUNDS GOVERNMENTAL WATERWORKS UTILITY SOLID WASTE OTHER ENTERPRISE FUNDS TOTAL ENTERPRISE FUNDS ACTIVITIES INTERNAL SERVICE FUNDS $ 6,170,463 $ 752,390 $ 3,186,566 $ 10,109,419 $ 6,702,581 755,491 150,000 750,000 1,655,491 4,350,000 4,428,270 723,614 60,052 5,211,936 5,958 18,430 - - 18,430 - 4,397 1,326 5,004 10,727 165,653 48,137 - - 48,137 2,048 245,455 123,740 313,379 682,574 - 331,434 - 49,353 380,787 - - - - - 80,260 $ 12,002,077 $ 1,751,070 $ 4,364,354 $ 18,117,501 $ 11,306,500 $ 2,606,852 $ - $ 441,358 $ 3,048,210 $ - $ 2,606,852 $ $ 441,358 $ 3,048,210 $ 61,325 - 61,325 - 176,376,760 13,131 17,795,470 194,185,361 4,682,530 769,107 - 53,697 822,804 - $ 191,816,121 $ 1,764,201 $ 22,654,879 $ 216,235,201 $ 15,989,030 The notes to the financial statements are an integral part of this statement. Basic Financial Statements 4-9 2003 Comprehensive Annual Financial Report City of Renton, Washington STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31, 2003 Page 2 of 2 The notes to the financial statements are an integral part of this statement. 4-10 Basic Financial Statements BUSINESS -TYPE ACTIVITIES ENTERPRISE FUNDS GOVERNMENTAL OTHER TOTAL ACTIVITIES WATERWORKS ENTERPRISE ENTERPRISE INTERNAL SERVICE UTILITY SOLID WASTE FUNDS FUNDS FUNDS LIABILITIES Current liabilities: Accounts payable $ 479,194 $ 285,891 $ 93,770 $ 858,855 $ 266,789 Retainage payable 118,482 - 124,873 243,355 - Due to other funds 47,563 - 10,039 57,602 804 Due to other governmental units 674,336 44,815 - 719,151 - Accrued interest payable 481,279 1,098 15,935 498,312 - Accrued employee benefits payable 31,813 272 5,703 37,788 3,387 Accrued taxes payable 49,741 35,956 31,207 116,904 - Custodial Accounts 24,829 - 70,975 95,804 Deferred revenue 83,308 - 44,814 128,122 Capital leases payable - - 24,271 24,271 - Total current liabilities $ 1,990,545 $ 368,032 $ 421,587 $ 2,780,164 $ 270,980 Liabilities payable from restricted assets: Revenue bonds payable - current $ 1,475,000 $ - $ 250,000 $ 1,725,000 $ - Total liabilities payable from restricted assets $ 1,475,000 $ - $ 250,000 $ 1,725,000 $ Long-term liabilities: Revenue bonds payable $ 23,725,000 $ - $ 3,620,000 $ 27,345,000 $ Unamortized premium on revenue bonds 177,953 - - 177,953 Unamortized discount on revenue bonds (629,130) - (394,061) (1,023,191) Deferred amount on reveneue bond refunding 122,638 - - 122,638 - Accrued employee benefits payable 265,857 2,451 74,639 342,947 21,512 Deferred revenue - - - - 2,474,749 Capital leases payable - - 33,834 33,834 - Public works trust fund loan payable 6,909,275 - - 6,909,275 - Total long-term liabilities $ 30,571,593 $ 2,451 $ 3,334,412 $ 33,908,456 $ 2,496,261 TOTAL LIABILITIES $ 34,037,138 $ 370,483 $ 4,005,999 $ 38,413,620 $ 2,767,241 NET ASSETS Investment in capital assets, net of related debt $ 144,267,485 $ 13,131 $ 13,901,199 $ 158,181,815 $ 4,682,530 Restricted 2,606,852 - 441,358 3,048,210 - Unrestricted 10,904,646 1,380,587 4,306,323 16,591,556 8,539,259 TOTAL NET ASSETS $ 157,778,983 $ 1,393,718 $ 18,648,880 $ 177,821,581 $ 13,221,789 The notes to the financial statements are an integral part of this statement. 4-10 Basic Financial Statements 2003 Comprehensive Annual Financial Report City of Renton, Washington STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2003 BUSINESS -TYPE ACTIVITIES ENTERPRISE FUNDS GOVERNMENTAL OPERATING REVENUES: Charges for services Interdepartmental services Other services TOTAL OPERATING REVENUES OPERATING EXPENSES: Operations and Maintenance Benefit Payments Professional Services Administrative and General Insurance Taxes Depreciation TOTAL OPERATING EXPENSES OTHER TOTAL ACTIVITIES WATERWORKS ENTERPRISE ENTERPRISE INTERNAL SERVIC UTILITY SOLID WASTE FUNDS FUNDS FUNDS $ 24,551,329 $ 8,445,207 $ 2,904,215 $ 35,900,751 $ 871,587 6,345 - 877,932 355,841 190,858 44,232 590,931 $ 25,778,757 $ 8,642,410 $ 2,948,447 $ 37,369,614 $ $ 3,962,259 $ 635,176 $ 1,632,642 $ 6,230,077 $ 759,240 33,090 278,216 1,070,546 107,543 6,884,712 34,310 7,026,565 9,550,910 47,448 375,873 9,974,231 83,700 - 24,100 107,800 2,526,867 912,233 9,087 3,448,187 4,013,656 3,939 459,504 4,477,099 $ 21,004,175 $ 8,516,598 $ 2,813,732 $ 32,334,505 $ OPERATING INCOME (LOSS) $ 4,774,582 $ NON-OPERATING REVENUES(EXPENSES): Intergovernmental Revenues $ - $ Interest revenues 155,363 Gain(loss) on sale of capital assets 134,605 Other non-operating revenues (expenses) 7,685 Interest expense (1,284,944) Amortization of debt discount and expense (92,345) NON-OPERATING REVENUE NET OF EXPENSE $ (1,079,636) $ INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS Capital Contributions Transfers in(out) CHANGE IN NET ASSETS FUND BALANCE JANUARY 1 NET ASSETS, DECEMBER 31 - $ 2,523,769 $ 2,523,769 $ 9,177 77,515 242,055 - - 134,605 71,039 78,724 (232,495) (1,517,439) 10,911,836 10,911,836 759,467 6,775,606 408,710 1,005,442 2,593,873 1,821 (1,571,023) 170,729 10,555 141,622 d, O -A nAn @ 40A non Q` IPn GOC (` C - Cin @ /4 IA. 441 4,158,711 4,000 4,162,711 40,000 - - 40,000 $ 7,893,657 $ 134,989 $ 2,573,635 $ 10,602,281 $ (1,248,117) $ 149,885,326 $ 1,258,729 $ 16,075,245 $ 167,219,300 $ 14,469,906 $ 157,778,983 $ 1,393,718 $ 18,648,880 $ 177,821,581 $ 13,221,789 The notes to the financial statements are an integral part of this statement. Basic Financial Statements 4-11 2003 Comprehensive Annual Financial Report STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2003 PAGE 1 OF 2 City of Renton, Washington The notes to the financial statements are an integral part of this statement. 4-I2 Basic Financial Statements BUSINESS -TYPE ACTIVITIES ENTERPRISE FUNDS GOVERNMENTAL OTHER TOTAL ACTIVITIES WATERWORKS ENTERPRISE ENTERPRISE INTERNAL SERVICE UTILITY SOLID WASTE FUNDS FUNDS FUNDS CASH FLOWS FROM OPERATING ACTIVITIES: Cash received for services $ 24,195,404 $ 8,523,465 $ 2,888,857 $ 35,607,726 $ 10,866,715 Cash received from other funds for services 914,915 - - 914,915 - Cash paid to suppliers for goods & services (10,400,776) (7,402,587) (737,636) (18,540,999) (10,471,775) Cash paid to other funds for goods & services (50,390) (299,443) (217,128) (566,961) Cash paid to employees (4,088,382) (163,403) (1,269,298) (5,521,083) (438,707) Cash paid for city utility taxes (2,526,867) (504,036) - (3,030,903) Other operating receipts 355,841 197,203 88,464 641,508 (2,048) Other non-operating receipts 7,685 (92,799) (242,340) (327,454) 103,061 NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES $ 8,407,430 $ 258,400 $ 510,919 $ 9,176,749 $ 57,246 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds $ 40,000 $ - $ - $ 40,000 $ - Advances from other funds - - - - Subsidy from federal grant - - - 38,561 NET CASH PROVIDED(USED) BY NONCAPITAL FINANCING ACTIVITIES $ 40,000 $ - $ - $ 40,000 $ 38,561 CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: Proceeds from the sale of equipment $ 134,605 $ - $ $ 134,605 $ 40,048 Acquisition & construction of capital assets (8,622,284) - (3,398,900) (12,021,184) (609,296) Capital contributions - - - - Capital grants - - 2,523,769 2,523,769 Proceeds from the sale of bonds - - - Principal payments on bonds (2,799,328) - (184,133) (2,983,461) Interest payments on bonds (1,041,643) - (203,541) (1,245,184) NET CASH PROVIDED(USED) BY CAPITAL FINANCING ACTIVITIES $ (12,328,650) $ - $ (1,262,805) $ (13,591,455) $ (569,248) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of investments $ 7,563,839 $ - $ 4,400,000 $ 11,963,839 $ 1,184,500 Payments for investments (150,000) (3,450,000) (3,600,000) (3,238,000) Interest on investments 190,588 17,564 111,010 319,162 128,398 NET CASH PROVIDED(USED) BY INVESTING ACTIVITIES $ 7,754,427 $ (132,436) $ 1,061,010 $ 8,683,001 $ (1,925,102) NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS $ 3,873,207 $ 125,964 $ 309,124 $ 4,308,295 $ (2,398,543) CASH & CASH EQUIVALENTS, JANUARY 1 2,297,256 626,426 3,318,801 6,242,483 9,101,124 CASH & CASH EQUIVALENTS, DECEMBER 31 $ 6,170,463 $ 752,390 $ 3,627,925 $ 10,550,778 $ 6,702,581 The notes to the financial statements are an integral part of this statement. 4-I2 Basic Financial Statements 2003 Comprehensive Annual Financial Report STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2003 PAGE 2 OF 2 WATERWORKS UTILITY City of Renton, Washington BUSINESS -TYPE ACTIVITIES ENTERPRISE FUNDS GOVERNMENTAL OTHER TOTAL ACTIVITIES ENTERPRISE ENTERPRISE INTERNAL SERVICE SOLID WASTE FUNDS FUNDS FUNDS RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) $ 4,774,582 $ 125,812 $ 134,715 $ 5,035,109 $ (1,571,023) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation & amortization of deferred charges 4,013,656 12,348 459,504 4,485,508 937,940 Other non-operating revenue 7,685 71,039 78,724 103,061 (Increase)decrease in accounts receivable (252,074) 72,643 (20,503) (199,934) 5,426 (Increase)decrease in due from other funds/governmental units 43,328 (92,799) (269,147) (318,618) (2,048) (Increase)decrease in inventory & prepaid items (15,371) - 16,278 907 7,392 Increase(decrease)in vouchers retainage payable 100,885 91,727 111,961 304,573 54,047 Increase(decrease)in due to other governmental units (50,390) - 4,681 (45,709) - Increase(decrease) in payables & other short-term liabilities 1,920 48,213 (2,634) 47,499 - Increase(decrease)in customer deposits (3,690) - (709) (4,399) (50,547) Increase(decrease)in deferred revenues (100,161) - 8,488 (91,673) 594,244 Increase(decrease)in accrued employee leave benefits (112,940) 456 (2,754) (115,238) (21,246) Total adjustments 3,632,848 132,588 376,204 4,141,640 1,628,269 NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES $ 8,407,430 $ 258,400 $ 510,919 $ 9,176,749 $ 57,246 NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES Contributions of capital assets $ 4,158,711 - - 4,158,711 - Increase in fair value of investments 5,491 - - 5,491 - Borrowing under capital leases - - 58,105 58,105 - The notes to the financial statements are an integral part of this statement. Basic Financial Statements 4-13 2003 Comprehensive Annual Financial Report City of Renton, Washington STATEMENT OF NET ASSETS FIDUCIARY FUNDS December 31, 2003 The notes to the financial statements are an integral part of this statement. 4-14 Basic Financial Statements FIREFIGHTER'S SPECIAL PENSION DEPOSIT TOTAL ASSETS Cash & cash equivalents $ 1,385,601 $ 216,892 $ 1,602,493 Investments at fair value 4,525,499 - 4,525,499 Receivables (net of allowances) Interest on investments 1,841,372 - 1,841,372 TOTAL ASSETS $ 7,752,472 $ 216,892 $ 7,969,364 LIABILITIES Vouchers & contracts payable $ 98 $ - $ 98 Deposits payable 216,892 216,892 TOTAL LIABILITIES $ 98 $ 216,892 $ 216,990 NET ASSETS Held is trust for pension benefits & other purposes $ 7,752,374 $ - $ 7,752,374 TOTAL NET ASSETS $ 7,752,374 $ - $ 7,752,374 The notes to the financial statements are an integral part of this statement. 4-14 Basic Financial Statements 2003 Comprehensive Annual Financial Report City of Renton, Washington STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIREMEN'S PENSION FUND December 31, 2003 The notes to the financial statements are an integral part of this statement. Basic Financial Statements 4-15 PENSION TRUST FIREMEN'S PENSION ADDITIONS: Other contributions: Fire insurance premiums $ 63,088 Investment income: Interest revenue 202,035 TOTAL ADDITIONS $ 265,123 DEDUCTIONS: Benefit payments $ 350,745 Administrative and general 11,466 TOTAL DEDUCTIONS $ 362,211 NET INCREASE(DECREASE) $ (97,088) NET ASSETS - JANUARY 1 $ 9,188,904 Prior Period Adjustment (1,339,442) NET ASSETS - DECEMBER 31 $ 7,752,374 The notes to the financial statements are an integral part of this statement. Basic Financial Statements 4-15 2003 Comprehensive Annual Financial Report City of Renton, Washington This Page Intentionally Left Blank 4-16 Basic Financial Statements 2003 Comprehensive Annual Financial Report City of Renton, Washington NOTES TO THE FINANCIAL STATEMENTS January 1, 2003 through December 31, 2003 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 statues, together with a Municipal Airport, a Waterworks Utility, a Solid Waste Utility, and a Municipal Golf Course. The accounting and reporting policies of the City related to the funds included in the accompanying financial statements conform to generally accepted accounting principles (GAAP) applicable to state and local governments. GAAP for local governments include those principles prescribed by the Governmental Accounting Standards Board (GASB), the Financial Accounting Standards Board (FASB), when applicable, and the American Institute of Certified Public Accountants (AICPA) pronouncements that have been made applicable by GASB Statements or Interpretations. In accordance with GASB Statement 20 the City has not applied to its proprietary activities FASB Statements and Interpretations, Accounting Principles Board opinions, and Accounting Research Bulletins of the Committee of Accounting Procedure issued after November 30, 1989. In June 1999, GASB approved Statement 34 "Basic Financial Statements and Management Discussion and Analysis for State and Local Governments." Significant changes in the statement include the following: • A Management Discussion and Analysis (MD&A) section providing an analysis of the City's overall posi- tion and results of operation. • Government -wide financial statements prepared using full accrual accounting for all the City's activities including infrastructure (roads, bridges, traffic signals and signs, etc.). • A change in the fund financial statements focusing on the major funds. The City implemented the general provisions of the GASB Statement 34 for the fiscal year 2003 and plans to retroactively report infrastructure (assets acquired between January 1, 1980 to December 31, 2002) by the fiscal year ending December 31, 2004. In June 2001, GASB released two new authoritative statements. Statement 37, "Basic Financial Statements and Management Discussion and Analysis for State and Local Governments: Omnibus", amends Statements 21 & 34 and Statement 38, "Certain Financial Statement Note Disclosures", modifies existing note disclosure requirements. In March 2003, GASB released Statement 40, "Deposit and Investment Risk Disclosures", an amendment of GASB Statement 3. These and other changes are reflected in the accompanying financial statements, including notes to the financial statements. A. REPORTING ENTITY As required by GAAP the City's financial statements present the City of Renton — the primary government. There are no component units (either blended or discretely presented) included in these statements. B. BASIC FINANCIAL STATEMENTS — GASB 34 PRESENTATION The City's basic financial statements include both government -wide (reporting the City as a whole) and fund financial statements (reporting the City's major funds). Both the government -wide and fund financial statements categorize primary activities as either government or business -type. Basic Financial Statements 4-17 2003 Comprehensive Annual Financial Report GOVERNMENT -WIDE STATEMENTS City of Renton, Washington In the government -wide Statement of Net Assets, both the governmental and business -type activities columns (a) are presented on a consolidated basis by column, and (b) are reported on a full accrual, economic resource basis, which recognized all long-term assets and receivables as well as long-term debt and obligations. The City's net assets are reported in three parts — investment in capital assets, net of related debt; restricted net assets; and unrestricted net assets. The City first utilizes restricted resources to finance qualifying activities. The government -wide Statement of Activities reports both the gross and net cost of each of the City's functions and business -type activities (general government, judicial, security of persons & property, physical environment, transportation, economic environment, mental & physical health, culture & recreation, waterworks utility, airport, solid waste utility, and golf course). General government revenues (property taxes, timber taxes, retail sales & use taxes, business taxes, excise taxes, and other taxes) also support the functions. The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants and contributions. Program revenues must be directly associated with the function or a business -type activity. Operating grants include operating specific and discretionary (either operating or capital) grants while the capital grants column reflects capital specific grants. The net cost (by function or business -type activity) is normally covered by general revenues. The government -wide focus is more on the sustainability of the City as an entity and the change in the City's net assets resulting from the current year's activities. FUND FINANCIAL STATEMENTS The fund financial statements are, in substance, very similar to the financial statements presented prior to implementation of GASB Statement 34. The financial transactions are recorded in individual funds, each accounted for by a separate set of self -balancing accounts that comprise assets, liabilities, reserves, fund equity, revenues, and expenditures or expenses. The GASB Statement 34 model's presentation is by major funds in either the governmental or business -type categories. (GASB Statement 34 sets forth the minimum criteria for the determination of a major fund. The non -major funds are combined in the fund financial statements and are detailed in the combining section. The governmental major fund statements in the fund financial statement are presented on current financial resources and modified accrual basis of accounting. Since governmental fund statements are presented on a different measurement focus and basis of accounting than the government -wide statements' governmental column, a reconciliation is presented at the end of the statement, which briefly explains the adjustments necessary to transform the fund statements into the government -wide presentation. Internal service funds of a government are presented in summary form as part of the proprietary fund financial statements. Since the principal users of the internal services are the City's governmental activities, financial statements for internal service funds are consolidated into the governmental column when presented at the governmental level. These services are reflected in the appropriate functional activity (general government, judicial, security of persons & property, physical environment, transportation, economic environment, mental & physical health, culture & recreation). Interfund fund activity has been eliminated from the government -wide financial statements. Exceptions are payments in lieu of taxes, external type transactions within the internal service funds (revenue and expenses for interest or services provided to other governmental organization and other charges for waterworks utility or storm water utility. Elimination of these charges would distort the direct cost and program revenues for these functions. 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. 4-18 Basic Financial Statements 2003 Comprehensive Annual Financial Report City of Renton, Washington The following describes each fund as presented in the fund financial statements. MAJOR FUNDS GENERAL FUND The 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 public safety, building, planning, human services, and general administration. 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. PARKS The Parks Fund accounts for the City's parks and recreation programs: operations, maintenance, and improvements for municipal park buildings, and landscaping and street tree functions. Resources are primarily from general tax revenues and charges for services. ENTERPRISE FUNDS WATERWORKS UTILITY The Waterworks Utility Fund accounts for all the operation and capital improvement programs for the water, wastewater, and storm water services within the City. The activities primarily supported by user fees include: administration, billings and collections, debt service, engineering and operation, maintenance and repairs. The primary resources for the capital improvement programs are revenue bond proceeds, grants (as available) and utility collection charges. SOLID WASTE Solid waste, recycling and yard waste collection services for the City are accounted for in this fund, supported entirely by service fees. The expenses include payment to the City's garbage contractor and other service charges. ILIUMBl//:lllel].71UJ 1"1 _1 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. STREET FUND The Street Fund was established pursuant to state law to account for maintenance and improvements of the City's street and traffic control systems. Major sources of support are general revenues and state levied taxes on motor vehicle fuels distributed to the City of Renton. COMMUNITY DEVELOPMENT BLOCK GRANT FUND The Community Development Block Grant Fund was established to administer the federally funded Community Development Block Grant activity. LIBRARY FUND The Library Fund accounts for operation of the City's library system, including central and branch facilities. Resources to the fund are mainly general tax revenues and library fines. Basic Financial Statements 4-19 2003 Comprehensive Annual Financial Report HOTEL/MOTEL TAX FUND City of Renton, Washington Accounts for monies collected through an increase of I% in hotel/motel taxes for the purpose of increasing tourism in the City of Renton. PATHS AND TRAILS RESERVE FUND The Paths and Trails Reserve Fund was created for the purpose of planning, accommodating, and establishing and maintaining certain paths and trails within the City of Renton. One-half of one -percent (1/2 of 1%) of the State levied motor vehicle fuel tax distributed to the City is allocated to this fund each year. ONE PERCENT FOR ART FUND The City of Renton established this fund by contributing 1% of general governmental capital project funding for art projects. CABLE COMMUNICATIONS DEVELOPMENT FUND The Cable Communications Development Fund accounts for funding for promotion and development of cable communications as established by City ordinance. 1997 -LIMITED GENERAL OBLIGATION BOND REDEMPTION FUND Accounts for debt service on a Council -approved bond issue, which provided funding for the purchase of Renton City Hall. 1978 -LIMITED GENERAL OBLIGATION BOND REDEMPTION FUND This fund accounts for debt service on a Council -approved bond issue, which provided partial funding for construction of the Renton Senior Activity Center. GENERAL GOVERNMENTAL MISCELLANEOUS DEBT SERVICE FUND Accounts for debt service on installment contracts for equipment, City Shop land purchase, the 1984 and 1985 Limited General Obligation Bond issues for equipment and the 1986 Limited Bond issued to finance a community center, library improvements, permanent financing for purchase of a golf course, acquisition of wetland property and equipment. 1989 UNLIMITED GENERAL OBLIGATION BOND REDEMPTION FUND Accounts for debt service on a voter -approved bond issue, which provided financing to; acquire, construct, rehabilitate, equip and develop low-income housing for the elderly. SPECIAL ASSESSMENT DEBT FUND The Special Assessment Debt Fund accounts for the special assessment collections. DOWNTOWN PARKING GARAGE Accounts for resources and expenditures related to the construction of a downtown parking facility. COMMUNITY DEVELOPMENT IMPACT MITIGATION FUND Accounts for monies collected from developers to offset impacts created by their developments to City facilities. 4-20 Basic Financial Statements 2003 Comprehensive Annual Financial Report FIRE IMPACT MITIGATION FUND City of Renton, Washington 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. LEASED CITY PROPERTIES Accounts for revenue and expenditures related to City property leased to outside entities. AQUATIC CENTER FUND Accounts for resources and expenditures related to the construction of the Henry Moses Family Aquatic Center. MUNICIPAL FACILITIES CONSTRUCTION FUND The Municipal Facilities Construction Fund accounts for the acquisition and development of municipal facilities. Resources included general and special revenue taxes and Council -approved general obligation bonds. GENERAL GOVERNMENT CAPITAL IMPROVEMENT FUND The General Government Capital Improvement Fund accounts for revenues and expenditures for of numerous capital improvements projects, to provide infrastructure necessary for controlled growth, and to address general City needs. Primary resources include; general tax revenues, business licenses fees, federal and state grants, general obligation bond proceeds and transfers from various cumulative reserve funds. AIRPORT FUND Provides accounting for revenues and expenses which provides 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. It accounts for the operation, maintenance, debt service and capital improvements of the facility. OTHER FUND TYPES INTERNAL SERVICE FUNDS EQUIPMENT RENTAL The Equipment Rental Fund accounts for the costs of maintaining and replacing all City vehicles and auxiliary equipment except for fire apparatus and replacement of police patrol vehicle. All equipment costs, including depreciation, are factors in calculating the rates which 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 by the Insurance Fund and rates are charged to departments based on use and/or coverage requirements. Basic Financial Statements 4-21 2003 Comprehensive Annual Financial Report City of Renton, Washington FIDUCIARY FUNDS Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. The City has one Pension Trust Fund and one Agency Fund. PENSION TRUST FUND FIREMEN'S PENSION FUND The Firemen's Pension Fund accounts for the payment of administrative costs and benefits for retired fire fighters and their beneficiaries, who were employed prior to March 1, 1970. Primary revenues sources are general property tax allocations in accordance with actuarial calculations, the fire premium tax, and investment income. AGENCY FUND SPECIAL DEPOSIT FUND The Special Deposit Fund was established for the purpose of holding or retaining 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 form the transmitting department. C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Basis of accounting refers to the point at which revenues or expenditures/expenses are recognized in the accounts and reported in the financial statements. It relates to the timing of the measurement made regardless of the measurement focus applied: 1. Accrual Both governmental and business -type activities in the government -wide financial statements and the proprietary and fiduciary fund financial statements are presented on the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred. Substantially all government fund revenues are accrued. Property taxes are billed and collected within the same period in which taxes are levied. Subsidies and grants to proprietary funds, which finance either capital or current operations, are reported as non-operating revenue based on GASB Statement 33. In applying GASB Statement 33 to grant revenues, the provider recognizes liabilities and expenses and the recipient recognizes receivables and revenue when the eligibility requirements, including time requirements, are met. Resources transmitted, before the eligibility requirements are met are reported as advances by the provider and deferred revenue by the recipient. 2. Modified Accrual The government funds financial statements are presented on the modified basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual: i.e., both measurable and available. "Available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The City considers all revenue reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are generally recognized under the modified accrual basis of accounting when the related liability is incurred. The exception to this general rule is that principal and interest on general obligation long-term debt, if any, is recognized when due. D. ASSETS, LIABILITIES, AND FUND EQUITY Cash and Cash Equivalents The City has defined cash and cash equivalents as cash on hand, demand deposits, and all highly liquid investments (including restricted assets) with maturity of three months or less when purchased. These amounts are classified on the balance sheet or in the statement of net assets as cash and cash equivalents or investments in the various funds. 4-22 Basic Financial Statements 2003 Comprehensive Annual Financial Report City of Renton, Washington The interest on these investments is prorated to the applicable funds. Included in this category are all funds invested in the Local Government Investment Pool and Municipal Investor Account. Excluded from this category are cash balances held by Fiscal Agents since the City does not have discretionary use of these funds. Investments — Refer to Note 3B. Receivables and Payables — Amounts Owed/Payable to/by the City at year-end. Taxes receivable consists of property taxes and related interest and penalties (Refer to Note 4). Accrued interest receivable consists of amounts earned on investments, notes, and contracts. Accrued interest payable consists of amounts owed on notes, loans, and contracts. Customer accounts receivable/payable consists of amounts owed from/to private individuals or organizations for goods and services. If the transactions are with another governmental unit, it is accounted for within "due from/to 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. Deferred assessments consist of special assessments not due within one year. 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. Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to either "due tofrom other funds " (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interf ind loans). All other outstanding balances between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances" (Refer to Note 10). Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. In the government -wide financial statements, and proprietary fund types in the fund financial statements, long- term liabilities are reported in applicable governmental activities, business -type activities, or proprietary fund type statement of net assets. Unamortized Premium — the unamortized portion of the excess of bonds proceeds over their face value (excluding accrued interest and issuance costs). Deferred Amount -Refunding — The difference between the carrying amount of redeemed/defeased debt and its reacquisition price. This amount is deferred and amortized over the remaining life of the debt or the life of the new debt, whichever is shorter. 4. 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. Inventories are carried at cost on the first -in, first out — FIFO basis. 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. Capital Assets and Depreciation — (Refer to Note 5) 6. Deferred Revenues Basic Financial Statements 4-23 2003 Comprehensive Annual Financial Report City of Renton, Washington This account includes amounts recognized as receivables but not revenues in the governmental funds because the revenue recognition criterion has not been met. 7. Custodial Accounts This account reflects the liability for net monetary assets being held by the City in its agency capacity. 8. Compensated Absences The City accrues accumulated unpaid vacation and sick leave and associated employee -related costs when earned (or estimated to be earned) by the employee. The non-current portion (the amount estimated to be used in subsequent fiscal years) for governmental funds is maintained separately and represents a reconciling item between the fund and government -wide presentations. 9. Fund Balance Designations and Reservations In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. The City has the following reserved or designated fund balances: Fund Designated General Fund Purpose Operating Cash Reserves @ 8% of Expenditures $3,398,168 Parks Fund Operating Cash Reserves @ 8% of Expenditures $719,143 Street Fund Operating Cash Reserves @ 8% of Expenditures $447,747 Library Fund Operating Cash Reserves @ 8% of Expenditures $117,776 Aquatic Center Totals 100% of Fund Balance for Payment of Pool Completion $1,254,369 $5,937,203 10. Net Assets —(Refer to Note 12) 11. Encumbrances An encumbrance system is maintained to account for commitments resulting from approved purchase orders, contracts, and other commitments. Encumbrances remaining at year-end lapse and are canceled. Upon request by the department and approval of the City Council, encumbrances may be re -appropriated in the following year. E. REVENUES, EXPENDITURES AND EXPENSES Program Revenues Program revenues include charges for services to customers for goods and services provided, operating grants and contributions, and non-operating grants and contributions within the government -wide Statement of Activities. Charges for services include business licenses, construction permits, and weapon permits. 4-24 Basic Financial Statements 2003 Comprehensive Annual Financial Report City of Renton, Washington 2. General Revenues Property taxes, timber taxes, retail taxes, business taxes, excise taxes, and associated penalties and interest, and interest and investment earnings are classified as general revenues within the government -wide Statement of Activities. Interfund Transfers Permanent reallocation of resources between funds of the reporting entity are classified as interfund transfers. For purposes of the government -wide Statement of Activities, all interfund transfers between individual governmental funds have been eliminated. 4. Expenditures/Expenses Expenses in the government -wide Statement of Activities are reported by function as a governmental activity (general government, judicial, security of persons and property, physical environment, transportation, economic environment, culture & recreation, or 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 principle and interest payments, or purchases of capital items. Proprietary expenditures are classified as operation or non-operating. Operating and Non-operating Revenues and Expenses Operating revenues and expenses for proprietary funds are those that result from providing services and producing and delivering goods and/or services in connection to the proprietary fund's principle ongoing operations. It includes all revenue and expenses not related to capital and related financing, non -capital financing, or investing activities. All revenues and expenses not meeting this definition are non-operating revenues and expenses. NOTE 2. COMPLIANCE AND ACCOUNTABILITY The City of Renton budgets its funds on the cash basis of accounting at the fund level. Annual appropriated budgets are adopted for governmental funds. Budgets for proprietary funds are "management budgets" and are not legally required to be reported. Included in the Required Supplemental and Combining sections of the CAFR are Schedules of Revenues, Expenditures, and Changes in Fund Balances (Budget to Actual) reporting the Actual Budgetary Basis (cash basis) verses Actual GAAP Basis of Accounting (modified basis) 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. The Leased City Properties capital projects fund had a fund deficit balance of $720,300 as of December 31, 2003. This deficit decreased $426,221 over the prior year. The long-term expectation continues to be lease revenues will offset the expenditures and reduce the deficit incrementally each year. A. PROCEDURES FOR ADOPTING THE ORIGINAL BUDGET The City of Renton's budget procedures are mandated by the Revised Code of Washington 35a.33. 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 and estimates provided by the City departments during the preceding months, and balanced with revenue estimates made by the Mayor. 2. The City Council conducts public hearings on the proposed budget in November and December. 3. The Council makes it 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. Basic Financial Statements 4-25 2003 Comprehensive Annual Financial Report B. AMENDING THE BUDGET City of Renton, Washington The budget, as adopted, constitutes the legal authority for expenditures. Budgets are adopted on the cash basis of accounting; therefore any comparisons between budget and actual revenues and expenditures are reported under the budgetary basis. The annual 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. The budget was amended three times during 2003. Original budgeted inflows as compared to the final budgeted inflows are as follows: Fund Original Budgeted Inflows Budgeted Inflows 1 Budgeted Inflows General Fund $43,447,600 $44,472,600 $1,025,000 Park Fund 9,348,100 9,348,100 0 Arterial Street Fund 353,500 353,500 0 Street Fund 5,911,400 5,911,400 0 Community Development Block Grant Fund 305,000 336,561 31,561 Library Fund 1,435,100 1,435,100 0 Hotel/Motel Tax Fund 200,000 200,000 0 Paths and Trails Reserve Fund 0 0 0 One Percent for Art Fund 75,000 75,000 0 Cable Communications Development Fund 32,700 32,700 0 1997 LGO Bond Fund 654,300 654,300 0 1978 LGO Bond Fund 35,100 35,100 0 General Government Miscellaneous Debt Service Fund 1,871,300 2,146,300 275,000 1989 UGO Bond Redemption Fund 512,700 512,700 0 Special Assessment Debt Fund 334,600 334,600 0 Downtown Parking Garage 100,000 100,000 0 Community Development Impact Mitigation Fund 290,000 290,000 0 Fire Impact Mitigation Fund 225,000 225,000 0 Transportation Impact Mitigation Fund 585,000 585,000 0 Leased City Properties Fund 610,000 610,000 0 Aquatic Center Fund 0 0 0 Municipal Facilities Construction Fund 2,367,600 2,367,600 0 General Government Capital Improvement Fund 5,946,500 6,946,500 1,000,000 Waterworks Utility Fund 26,764,700 26,764,700 0 Airport Fund 1,895,100 4,935,100 3,040,000 Solid Waste Utility Fund 9,074,500 9,074,500 0 Golf Course Fund 2,372,500 2,372,500 0 Equipment Rental Fund 2,991,200 2,991,200 0 Insurance Fund Totals 8,187,400 $125,925,900 8,687,400 $131,797,461 500,000 $5,871,561 4-26 Basic Financial Statements 2003 Comprehensive Annual Financial Report City of Renton, Washington Original budgeted outflows as compared to the final budgeted inflows are as follows: General Fund Original Budgeted Outflows $44,871,800 -� �Ifl al Budgeted outflowsFund $46,159,600 Increase(Decrease) dg. .d Outflows $1,287,800 Park Fund 9,250,100 9,510,200 260,100 Arterial Street Fund 353,500 353,500 0 Street Fund 5,911,400 6,212,700 301,300 Community Development Block Grant Fund 295,700 336,561 40,861 Library Fund 1,435,100 1,512,300 77,200 Hotel/Motel Tax Fund 200,000 261,200 61,200 Paths and Trails Reserve Fund 0 0 0 One Percent for Art Fund 75,000 75,000 0 Cable Communications Development Fund 31,600 31,600 0 1997 LGO Bond Fund 654,300 654,300 0 1978 LGO Bond Fund 35,100 35,100 0 General Government Miscellaneous Debt Service Fund 1,871,300 2,146,300 275,000 1989 UGO Bond Redemption Fund 511,500 511,500 0 Special Assessment Debt Fund 334,600 759,600 425,000 Downtown Parking Garage 0 3,923,575 3,923,575 Community Development Impact Mitigation Fund 950,000 1,275,000 325,000 Fire Impact Mitigation Fund 298,000 4,519,800 4,221,800 Transportation Impact Mitigation Fund 2,451,400 2,451,400 0 Leased City Properties Fund 516,900 554,400 37,500 Aquatic Center Fund 0 4,899,500 4,899,500 Municipal Facilities Construction Fund 2,946,000 8,314,700 5,368,700 General Government Capital Improvement Fund 6,661,200 7,661,200 1,000,000 Waterworks Utility Fund 37,542,400 42,196,852 4,654,452 Airport Fund 1,557,000 5,185,225 3,628,225 Solid Waste Utility Fund 9,074,500 9,093,900 19,400 Golf Course Fund 2,569,100 2,601,600 32,500 Equipment Rental Fund 2,991,200 3,374,094 382,894 Insurance Fund Totals 9,047,000 II 9,553,500 $174,164,207 506,500 Basic Financial Statements 4-27 2003 Comprehensive Annual Financial Report NOTE 3. DEPOSITS AND INVESTMENTS A. Deposits City of Renton, Washington The City's deposits and certificates of deposit are entirely covered by the federal depository insurance (FDIC) or by collateral held in a multiple financial institution collateral pool administered by the Washington Public Deposit Protection Commission (WPDPC). B. Investments As required by state law, all investments of the City's funds (except as noted below) are obligations of the U.S. Government, U.S. agency issues, obligations of the State of Washington, general obligations of Washington State municipalities (the State Treasurer's Local Government Investment Pool (LGIP), or certificates of deposit with Washington State Banks and savings and loan institutions. A 2a7 -like -pool is an external investment pool that is not registered with the SEC as an investment company, but nevertheless has a policy that it will, and does, operate in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940. The LGIP, managed by the Washington State Office of the Treasurer, is comparable to a Rule 2a7 -pools recognized by the Securities and Exchange Commission, Rule 2a7 allows SEC - registered mutual funds to use amortized cost rather than market value to report net assets to compute share prices. Investments are shown on the entity -wide Statement of Net Assets at fair market value or for 2a7 -like pools at amortized cost. Investments are reported with Cash and Investments of Governmental Activities and within Cash and Cash Equivalents or Investments of Business -type Activities. C. Deposit and Investment Schedule NOTE 4. PROPERTY TAXES The County Finance Director acts as an agent to collect property taxes levied in the county for all taxing authorities. Taxes are levied annually on January 1 on property value listed as of the prior August 31. Assessed values are established by the 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 County Assessor and collected by the 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 $30.00. The first half of real property taxes is due on April 30 and the balance is due October 31. Delinquent taxes bear interest at the rate of 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. 4-28 Basic Financial Statements Governmental Funds Cash & Cash Equivalents $16,654,782 Cash with Fiscal Agent $22,000 Investments $19,605,925 Proprietary Cash and Cash Equivalents $16,812,000 Investments $6,005,491 Restricted Investments $3,048,210 Fiduciary Funds Cash and Cash Equivalents $1,602,493 Investments Total $4,525,499 $68,276,400 NOTE 4. PROPERTY TAXES The County Finance Director acts as an agent to collect property taxes levied in the county for all taxing authorities. Taxes are levied annually on January 1 on property value listed as of the prior August 31. Assessed values are established by the 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 County Assessor and collected by the 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 $30.00. The first half of real property taxes is due on April 30 and the balance is due October 31. Delinquent taxes bear interest at the rate of 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. 4-28 Basic Financial Statements 2003 Comprehensive Annual Financial Report City of Renton, Washington At year-end, property taxes are recorded as a receivable with the portion not expected to be collected within 60 days offset by deferred revenue. During the year, property tax revenues are recognized when cash is received. The tax rate for general City operations is limited to $3.35 per $1000 of assessed value. Of this amount, up to $.45 per thousand may be designated for contribution to the Firemen's Pension Fund if a report by a qualified actuary indicated that additional funds are required. The tax rate limit may be reduced for any of the following reasons: 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 restricts individual taxing districts from col- lecting, in any year, more than a 1% increase in their regular, non -voted, levy over the highest levy amount since 1985. 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. The One Percent Constitution Limit: The Washington State Constitution limits the regular (non -voted) com- bined property tax rate applied to an individual's property to one percent ($10 per $1000) on the market val- uation. 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. The City may voluntarily levy taxes below the legal limit. Special levies approved by the voters are not subject to the above limitations. The City's regular levy for 2003 $3.18871 and the excess levy for General Obligation Bond debt is $.08865 for a total of $3.2736, per the King County Assessor's 2003 Annual Report. NOTE 5. CAPITAL ASSETS AND DEPRECIATION A. GENERAL POLICES Major expenditures for capital assets, including capital leases and major repairs that increase the useful life, are capitalized. The capitalization threshold applied to the City's assets is $5,000. Maintenance, repairs, and minor renewals are accounted for as expenditures or expenses when incurred. All capital assets are valued at historical cost (or estimated cost, where historical cost is not known /or estimated market value for donated assets /or the lower of cost or fair market value when transferred between proprietary and governmental funds.) The City has acquired certain assets with funding provided by federal financial assistance programs. Depending on the terms of the agreements involved, the federal government could retain an interest in these assets. However, the City has sufficient legal interest to accomplish the purposes for which the assets were acquired, and has included such assets within the applicable statements. The City capitalizes art and historical treasures. Art and historical treasures are expected to be maintained or enhanced over time and thus, are not depreciated. B. GOVERNMENTAL CAPITAL ASSETS Governmental long-lived assets of the City purchased, leased, or constructed are recorded as expenditures in the governmental funds and are capitalized, net of depreciation, in the government -wide statements, with one exception. The 2003 infrastructure assets (roads, bridges, streetlights, rights -of way, annexations, and capital contributions) were capitalized in 2003 but prior year infrastructure (back to 1980) will be capitalized in 2004. C. PROPRIETARY FUND CAPITAL ASSETS Capital assets of proprietary funds are capitalized in their respective statement of net assets, net of depreciation. Basic Financial Statements 4-29 2003 Comprehensive Annual Financial Report D. DEPRECIATION City of Renton, Washington Depreciation on all depreciable assets is provided on the straight-line basis over the following useful lives: Depreciation Expense was charged to governmental and business -type activities as follows: Type of Asset Buildings and Structures, except Utility Plant Estimated Service Life 25-50 years Other Improvements 25-50 years Utility Plant 25-75 years Machinery and Equipment 3-20 years Infrastructure 25-50 years Depreciation Expense was charged to governmental and business -type activities as follows: 4-30 Basic Financial Statements Governmental Activities General Government Amount $1,281,072 Judicial $3,692 Security of Persons and Property $471,869 Physical Environment $8,166 Transportation $134,405 Economic Development $50,764 Culture & Recreation $1,012,223 Health & Human Services $11,278 Internal Service Funds $954,391 Total Governmental Activities Depreciation Expense $3,927,860 4-30 Basic Financial Statements Business -type Activities Waterworks Amount $4,004,524 Airport $438,533 Solid Waste $3,939 Golf Course $228,358 Total Business -type Activities Depreciation Expense $4,675,354 4-30 Basic Financial Statements 2003 Comprehensive Annual Financial Report E. Summary of Changes City of Renton, Washington Description BeginningDecreases Ending Balance Governmental Activities Capital Assets not being depreciated: Balance Land and Land Improvements $28,525,944 $3,464,485 $0 $31,990,429 Construction in Progress 11,474,723 14,576,473 8,153,784 17,897,412 Total Capital not being depreciated $40,000,667 $18,040,958 $8,153,784 $49,887,841 Other Capital Assets: Buildings and Structures $24,842,084 $9,223,596 $0 $34,065,680 Other Improvements 22,071,964 7,703,128 0 29,775,092 Machinery and Equipment 47,211,054 2,049,326 290,207 48,970,173 Total Other Capital Assets at Capitalized Cost $94,125,102 $18,976,050 $290,207 $112,810,945 Less Accumulated Depreciation for: Buildings and Structures $10,691,831 $646,788 $0 $11,338,619 Other Improvements 12,020,078 747,022 0 12,767,100 Machinery and Equipment 12,491,654 2,488,220 260,715 14,719,159 Total Accumulated Depreciation $35,203,563 $3,882,030 $260,715 $38,824,878 Governmental Activities Capital Assets, Net of Depreciation $98,922,206 $33,134,978 $8,183,276 $123,873,908 Business -type Activities Capital Assets not being Depreciated: Land and Land Improvements $6,976,321 $0 $0 $6,976,321 Construction in Process 6,167,202 7,472,001 4,019,345 9,619,858 Total Capital Assets not being Depreciated $13,143,523 $7,472,001 $4,019,345 $16,596,179 Other Capital Assets Buildings and Structures $13,806,079 $3,498,836 $0 $17,304,915 Other Improvements 208,697,499 6,435,881 164,743 214,968,637 Machinery and Equipment 5,410,195 95,585 0 5,505,780 Total Other Capital Assets at Capitalized Cost $227,913,773 $10,030,302 $164,743 $237,779,332 Less Accumulated Depreciation for: Buildings and Structures $2,591,547 $308,273 $0 $2,899,820 Other Improvements 48,796,803 4,218,788 164,743 52,850,848 Machinery and Equipment 4,291,185 148,297 0 4,439,482 Total Accumulated Depreciation $55,679,535 $4,675,358 $164,743 $60,190,150 Business -type Capital Assets, Net of Depreciation $185,377,761 $12,826,945 $4,019,345 $194,185,361 Basic Financial Statements 4-31 2003 Comprehensive Annual Financial Report City of Renton, Washington At the end of 2003, one hundred seven (107) projects comprise the Construction in Progress. Upon completion, the projects will be capitalized in the Government -wide Statements in their appropriate categories and in the fund statements for proprietary funds, if applicable. Construction Commitments at December 31, 2003 are as follows: NOTE 6. PENSIONS With the exception of fire fighters employed prior to March 1, 1970, substantially all City full-time and qualifying part-time employees participate in one of the following statewide retirement systems administered by the Washington State Department of Retirement Systems, under cost-sharing multiple -employer public employee defined benefit and defined contribution retirement plans. 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 writing to: Department of Retirement Systems, Communications Unit, P.O. Box 48380, Olympia, WA 98504-8380. The City is the administrator of the Fire Fighter's Pension Plan for all fire fighters employed prior to March 1, 1970. The Fire Fighter's Pension Plan is considered part of the City's reporting entity and is included in the City's financial statements as a pension trust fund. An actuarial report prepared by Milliman, USA may be obtained by contacting the City of Renton, Office of Finance, 1055 South Grady Way, Renton, WA 98055. The following disclosures are made pursuant to GASB Statement No. 27, Accounting for Pensions by State and Local Government Employers. Public Employees Retirement System (PERS) Plans 1, 2, and 3 Plan Description PERS is a cost-sharing multiple -employer retirement system comprised of three separate plans for membership purposes: Plans 1 and 2 are defined benefit plans and Plan 3 is a combination defined benefit/defined contribution plan. 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 participants who joined the system by September 30, 1977, are Plan 1 members. Those joined on or after October 1, 1977 and by either February 28, 2002 for state and higher education employees, or August 31, 2002 for local government employees, are Plan 2 members unless they exercise an option to transfer their membership to Plan 3. PERS participants joining the system on or after March 1, 2002 for state and higher education employees, or September 1, 2002 for local government employees have the irrevocable option of choosing membership in either PERS Plan 2 or PERS Plan 3. The option must be exercised within 90 days of employment. An employee is reported in Plan 2 until a choice is made. Employees who fail to choose within 90 days default to PERS Plan 3. PERS defined benefit retirement benefits are financed from a combination of investment earnings and employer and employee contributions. PERS retirement benefit provisions are established in state statute and may be amended only by the State Legislature. 4-32 Basic Financial Statements 2003 Comprehensive Annual Financial Report City of Renton, Washington Plan 1 retirement benefits are vested after an employee completes five years of eligible service. Plan 1 members are eligible for retirement at any age after 30 years of service, or at age 60 with five years of service, or at age 55 with 25 years of service. The annual pension is 2 percent of the average final compensation per year of service, capped at 60 percent. The average final compensation is based on the greatest compensation during any 24 eligible consecutive compensation months. If qualified, after reaching age 66, a cost -of -living allowance is granted based on years of service credit and is capped at 3 percent annually. Plan 2 retirement benefits are vested after an employee completes five years of eligible service. Plan 2 members may retire at age 65 with five years of service, or at 55 with 20 years of service, with an allowance of 2 percent of the average final compensation per year of service. The average final compensation is based on the greatest compensation during any eligible consecutive 60 -month period. Plan 2 retirements prior to age 65 receive reduced benefits. If retirement is at age 55 or older with 30 years of service, a 3 percent per year reduction applies; otherwise an actuarial reduction will apply. There is no cap on years of service credit; and a cost -of -living allowance is granted (indexed to the Seattle Consumer Price Index), capped at 3 percent annually. 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 a benefit calculation at 1 percent of the average final compensation per year of service. The average final compensation is based on the greatest compensation during any eligible consecutive 60 -month period. Plan 3 members become eligible for retirement if they have at least ten years of service; or five years including twelve months that were earned after age 54; or five service credit years earned in PERS 2 prior to June 1, 2003. Plan 3 retirements prior to age 65 receive reduced benefits. If retirement is at age 55 or older with at least 30 years if service; a 3 percent per year reduction applies; otherwise an actuarial reduction will apply. There is no cap on years of service credit; and Plan 3 provides the same cost -of -living allowance as Plan 2. The defined contribution portion can be distributed in accordance with an option selected by the member, either as a lump sum or pursuant to other options authorized by the Employee Retirement Benefits Board. There are 1,167 participating employers in PERS. Membership in PERS consisted of the following as of the latest actuarial valuation date for the plans of September 30, 2002: Retirees and Beneficiaries Receiving Benefits 63,756 Terminated Plan Members Entitled To But Not Yet Receiving Benefits 19,152 Active Plan Members Vested 98,994 Active Plan Members Non -vested 55,191 Total 237,093 Funding Policy Each biennium the state Pension Funding Council adopts Plan 1 employer contribution rates, Plan 2 employer and employee contributions rates, and Plan 3 employer contribution rates. Employee contribution rates for Plan 1 are established by statute at 6 percent for state and local government unit employees, and 7.5 percent for state government elected officers. The employer and employee rates for Plan 2 and the employer contribution rates for Plan 3 are developed by the Office of the State Actuary to fully fund Plan 2 and the defined benefit portion of Plan 3. All employers are required to contribute at the level established by the Legislature. PERS 3 defined contribution is a non-contributing plan for employers. Employees who participate in the defined contribution portion of PERS 3 do not contribute to the benefit portion of PERS Plan 3. The Employee Retirement Benefits Board sets Plan 3 employee contribution rates. Six rate options are available ranging form 5 to 15 percent; two of the options are graduated rates dependent on the employee's age. The methods used to determine the contribution requirements are established under state statute in accordance with Chapters 41.40 and 41.45 RCW. Basic Financial Statements 4-33 2003 Comprehensive Annual Financial Report City of Renton, Washington The required contribution rates expressed as a percentage of current -year covered payroll, as of December 31, 2003 were as follows: *The employer rates include the employer administration expense fee currently at .22% **Plan 3 defined benefit portion only ***Variable from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3 member. Both the City and the employees made the required contributions. The City's required contributions for years ended December 31, were as follows: Year PERS Plan I PERS Plan 2 PERS Plan 3 2003 $26,914 $257,812 $24,838 2002 $31,176 $295,093 $431 2001 $79,263 $577,116 $0 Law Enforcement Officer's and Fire Fi2hter's Retirement System (LEOFF) Plans 1 & 2 Plan Description LEOFF is a cost-sharing multiple -employer retirement system comprised of two separate defined benefit plans. Membership in the system includes all full-time, fully compensated; local law enforcement officers and firefighters. LEOFF is comprised primarily of non -state employees. LEOFF participants who joined the system by September 30, 1977 are Plan 1 members. Those who joined on or after October 1, 1977 are Plan 2 members. Effective January 1, 2003 firefighter emergency medical technicians (EMTs) may transfer PERS Plan 1 or Plan 2 service credit to LEOFF Plan 2 if while employed for the city, town, county or district, the EMT's job was relocated to a fire department from another city, town, county or district, LEOFF defined benefits are financed from a combination of investment earnings, employer and employee contributions, and a special funding situation in which the state pays the remainder through state legislative appropriations. LEOFF retirement benefit provisions are established in state statute and may be amended only by the State Legislature. Plan 1 retirement benefits are vested after an employee completes 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 is as follows: Term of i 20 or more years 2.0% 10 but less than 20 years 1.5% 5 but less than 10 years 1.0% The final average salary is the basic monthly salary received at the time of retirement, provided a member has held the same position or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the highest consecutive 24 months' salary within the last 10 years of service. If membership was established in LEOFF after February 18, 1974, the service retirement benefit is capped at 60 percent of final average salary. A cost -of -living allowance is granted (indexed to the Seattle Consumer Price Index.) 4-34 Basic Financial Statements 2003 Comprehensive Annual Financial Report City of Renton, Washington Plan 2 retirement benefits are vested after an employee completes five years of eligible service. Plan 2 members may retire at the age of 50 with 20 years of service, or at age 53 with five years of service, with an allowance of 2 percent of the final average salary per year of service. The final average salary is based on the highest consecutive 60 months. Plan 2 retirements prior to age 53 are reduced 3 percent for each year that the benefit commences prior to age 53. There is no cap on years of service credit; and a cost -of -living allowance is granted (indexed to the Seattle Consumer Price Index), capped at 3 percent annually. There are 359 participating employers in LEOFF. Membership in LEOFF consisted of the following as of the latest actuarial valuation date for the plans of September 30, 2002: Retirees and Beneficiaries Receiving Benefits 8,231 Terminated Plan Members Entitled To But Not Yet Receiving Benefits 398 Active Plan Members Vested 11,222 Active Plan Members Non -vested 3,936 Total 23,787 Funding Policy Starting on July 1, 2000, Plan 1 employers and employees will contribute zero percent as long as the plan remains fully funded. Employer and employee contribution rates are developed by the Office of the State Actuary to fully fund the plan. Plan 2 employer and employees are required to pay at the level adopted by the Department of Retirement Systems in accordance with Chapter 41.45 RCW All employers are required to contribute at the level required by state law. The Legislature, by means of a special funding arrangement, appropriated money from the state General Fund to supplement the current service liability and fund the prior service cost of Plan 2 in accordance with the requirements of the Pension Funding Council. However, this special funding situation is not mandated by the state constitution and this funding requirement could be returned to the employers by a change is statute. The methods used to determine the contribution rates are established under state statute in accordance with chapters 41.26 and 41.45 RCW. The required contribution rates expressed as a percentage of current -year covered payroll, as of December 31, 2003, were as follows: Contributor LEOFF Plan 1 LEOFF Plan 2 Employer* .022% 3.25% Employee .00% 5.05% State n/a 2.02% *The employer rates include the employer administration expense fee currently at .22%, Both the City and the employees made the required contributions. The City's required contributions for years ended December 31, were as follows: Year LEOFF Plan I LEOFF Plan 2 2003 $3,632 $403,392 2002 $3,609 $369,533 2001 $3,834 $433,021 Basic Financial Statements 4-35 2003 Comprehensive Annual Financial Report Fire Fighter's Pension Plan Description City of Renton, Washington The Fire Fighter's Pension Plan is a closed, single -employer, defined benefit pension plan established in accordance with RCW 41.18 and Renton Municipal Code. This plan provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. This system was established for fire fighters employed prior to March 1, 1970, when the LEOFF retirement system was established. The retirement benefits vest after 20 years of service. Members may retire after 25 years of service regardless of age; and after age 50 with 20 or more years of service. At December 31, 2003, there were 43 members in the System: Retirees and Beneficiaries Receiving Benefits 35 Retirees Currently Receiving Full Retirement Through LEOFF 8 Active Plan Members Vested 0 Active Plan Members Non -vested 0 Total 43 Funding Policy Under State law, the Fire Fighter's Pension Plan is provided an allocation of all monies received by the State from taxes on fire insurance premiums; interest earnings; member contributions made prior to the inception of LEOFF; and City contributions required to meet projected future pension obligations. Costs of administering the Fire Fighter's Pension Plan and paid by the Plan. For 2003, this cost was $11,466. An actuarial valuation is done every two years and was completed as of January 1, 2003. The recap of the last three valuations are as follows: Significant actuarial assumptions used in the valuation include: 1) 5 percent inflation rate, 2) 6 percent investment return, compounded annually; 3) 5 percent salary increase annually; 4) 5 percent post-retirement benefit increase annually; 5) level dollar amortization method; and 6) 30 -year open amortization period. All assets are carried on a market value basis. There were no material changes to the benefit provisions, actuarial funding method (the modified aggregate cost method) or other significant factors that affect contributions required. The Annual Required Contribution (ARC) was computed using an alternate funding method, the Entry Age Normal Cost Method. Under this method the projected benefits are allocated on a level basis as a percentage of salary over the earnings of each individual between entry age and assumed exit age. The amount allocated to each year is called the Normal Cost and the portion of the Actuarial Present Value of all benefits not provided for by future Normal Cost payments is called the Actuarial Accrued Liability. Since all members have already retired, the amount of the Normal Cost is zero. The Unfunded Actuarial Accrued Liability (UAAL) is the Actuarial Accrued Liability minus the actuarial value of the Fund's assets. The actuarial accrued liability is equal to the actuarial value of assets. The three-year trend of annual pension cost and net pension obligation is recapped as follows: 4-36 Basic Financial Statements 2003 Comprehensive Annual Financial Report City of Renton, Washington Employees are not required to make contributions. The contributions to the System for 2003 include $63,088 from fire insurance premiums and $202,035 of investment income. NOTE 7. OTHER POST EMPLOYMENT BENEFITS In addition to the pension benefits described in Note 6, the City provides post employment benefits in accordance with State statute to all LEOFF I (law enforcement officers and fire fighters hired prior to 10/1/77) and Fire Pension (fire fighters hired prior to 3/1/70) retirees. Currently there are 98 LEOFF I retirees who receive necessary medical and hospitalization coverage and 5 retirees who are covered solely by the Fire Pension Plan and receive medical coverage limited to treatment of service -related disabilities only. Expenditures for post employment health care benefits are recognized as retirees report claims. The City does not have a funding policy at this time and no assets are designated for this purpose. During the year, expenditures of $704,682.72 were recognized for post employment health care. State statute provides that the City's responsibility for medical payments of LEOFF I retirees is secondary to any other coverage retirees receive or are eligible to receive. The City recognizes a potential savings exists when retirees utilize Medicare as primary coverage and the City for secondary coverage and ineligible expenses. Therefore, upon reaching age 65, the City requires the retirees to apply for and utilize Medicare Part B coverage. The City reimburses these Medicare premiums at an average cost of approximately $58.70 per month for 48 LEOFF I retirees and 5 Fire Pension retirees. NOTE 8. CONTINGENCIES Liti ag tion The City has recorded in it's financial statements all material liabilities, including an estimate for situations which are not yet resolved but where, based on available information, management believes it is probable that the City will have to make payment. In the opinion of management, the City's insurance policies and/or self-insurance reserves are adequate to pay all known or pending claims. Contingencies under Grant Provisions The City participates in a number of federal and state assisted programs. These grants are subject to audit by the grantors of their representatives. Such audits could result in requests for reimbursement to grantor agencies for expenditures disallowed under the terms of the grants. The City's management believes that such disallowances, if any will be immaterial. Bond Indentures The City is in compliance with all significant bond indenture and restrictions. Basic Financial Statements 4-37 2003 Comprehensive Annual Financial Report Construction Commitments Refer to Note 5. NOTE 9. RISK MANAGEMENT City of Renton, Washington 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, excess insurance is purchased to cover medium and large losses. And third, the City reserves the right to utilize the provisions of RCW 35A.31.060 to fund catastrophic or uninsured losses. This State statute allows cities to levy a non -voted property tax increase to pay for uninsured claims. An analysis of the self-insurance retention levels, limits of insurance, and claims administrators for the major types of coverage are as follows: Type of i g. Risk Retention Claims AggregateAmount Occurrence Administrator Property $25,000 Wa Cities Ins $500,000,000 Wa Cities Ins Authority (per occurrence subject Authority to sub -limits) Liability $250,000 Wa Cities Ins $14,000,000 Wa Cities Ins Authority (per occurrence) Authority Auto Liability $250,000 Wa Cities Ins $14,000,000 Wa Cities Ins Authority (per occurrence) Authority Boiler & Machinery $5,000 Arthur J. $50,000,000 Zurich Gallagher Public Officers $250,000 Wa Cities Ins $10,000,000 Wa Cities Ins Authority Authority Crime $10,000 Arthur J. $1,000,000 Travelers Casualty Gallagher & Surety Airport Liability $0 Arthur J. $50,000,000 Ace Property & Gallagher Casualty Underground $10,000 Arthur J. $1,000,000 Commerce & Storage Tank Gallagher Industry Worker's Comp $300,000 Johnston & $1,000,000 Midwest Casualty Culbertson Employee Health $190,000 HMA, Inc n/a Safeco During 2003, there were no reductions in insurance coverage, and settlements for the last three years have not exceeded insurance coverage. The City of Renton is a member of the Washington Cities Insurance Authority (WCIA). Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine cities originally formed WCIA on January 1, 1981. WCIA was created for the purpose of providing a pooling mechanism for jointly purchasing insurance, jointly self-insuring, and/or jointly contracting for risk management services. WCIA has a total of over 100 members. New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A one-year withdrawal notice is required before membership can be terminated. Termination does not relieve a former member from its unresolved loss history incurred during membership. 4-38 Basic Financial Statements 2003 Comprehensive Annual Financial Report City of Renton, Washington Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general, automobile, police professional, public officials' errors or omissions, stop gap, and employee benefits liability. Limits are $1 million per occurrence in the primary layer, $2 million per occurrence, subject to a $12 million annual aggregate, in the excess layer, and $11 million per occurrence in the second excess layer with no annual aggregate except $10 million per member for public officials errors and omissions. The second excess layer is insured by the purchase of reinsurance and insurance. Total limits are $14 million per occurrence. The Board of Directors determines the limits and terms of coverage annually. Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler and machinery are purchased on a group basis. Various deductibles apply by type of coverage. Property insurance and auto physical damage are self-funded from the members' deductible to $250,000, for all perils other than flood and earthquake, and insured above that amount by the purchase of reinsurance. In-house services include risk management consultation, loss control field services, claims and litigation administration, and loss analyses. WCIA contracts for the claims investigation consultants for personnel issues and land use problems, insurance brokerage, and lobbyist services. WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined by an outside, independent actuary. The assessment covers loss, loss adjustment, and administrative expenses. As outlined in the interlocal, WCIA retains the right to additionally assess the membership for any funding shortfall. An investment committee, using investment brokers, produces additional revenue by investment of WCIA's assets in financial instruments which comply with all State guidelines. These revenues directly offset portions of the membership's annual assessment. A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The Board elects an Executive Committee and appoints a Treasurer to provide general policy direction for the organization. The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day-to-day operations of WCIA. The City's Risk Management Program is administered by the Human Resources and Risk Management Administrator, with claims being processed by the independent claims administrators noted above. As of December 31, 2003, the City had accrued the following amounts for outstanding claims: Claims settlements and loss expenses are accrued in the Insurance Fund for the estimated settlement value of both reported and unreported claims. The Insurance Fund is used for collecting interfund premiums from insured funds and departments, and for paying claims settlements. Interfund premiums are assessed on the basis of claims history, number of employees, and value of assets. The following presents changes in claims liabilities the current and previous year: Basic Financial Statements 4-39 2003 Comprehensive Annual Financial Report City of Renton, Washington 2003 Property: i 'Employee Liability Compensation Health IBNR Claims at $359,920 $637,322 $883,263 $1,880,505 Beginning of the Year Current Year and $2,151,552 $699,655 $5,795,241 $8,646,448 Changes in Estimates Claims Payments ($1,589,739) ($821,707) ($5,640,758) (8,052,204) IBNR Claims at End of $921,733 $515,270 $1,037,746 $2,474,749 the Year 2002 Property:Worker's Liability Compensation Health IBNR Claims at $302875 $461,520 745,149 $1,509,544 Beginning of the Year Current Year and 530,482 854,084 5,439,671 6,824,237 Changes in Estimates Claims Payments (473,437) (678,282) (5,301,557) (6,453,276) IBNR Claims at End of $359,920 $637,322 $883,263 $1,880,505 the Year NOTE 10. INTERFUND TRANSACTIONS Interfund transactions are classified as follows: Services Provided — Transactions that would be treated as revenues, expenditures, or expenses if they involve external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds of the City of Renton. 2. Transfers — Transactions to support the operations of other funds are recorded as "Transfers" and classified with "Other Financing Sources or Uses" in the fund statements. Transfers between governmental or propri- etary funds are netted as part of the reconciliation to the Government -wide financial statements. Contributions — Contributions to the capital of enterprise or internal service funds, transfers of capital assets between proprietary and governmental funds, transfers to establish or reduce working capital in other funds, and transfers remaining balances when funds are closed are classified non-operating revenue. 4. Loans/Advances — Loans between funds are classified as interfund loans receivable and payable or as advances to and from other funds in the fund statements. Interfund loans do not affect total fund equity, but advances to other funds are offset by a reservation of fund equity. Loans and Advances are subject to elimi- nation upon consolidation. 4-40 Basic Financial Statements 2003 Comprehensive Annual Financial Report City of Renton, Washington As of December 31, 2003, outstanding interfund balances (resulting from various interfund transactions) were as follows: Fund General Fund Receivable Pa�able $5,700 $568 Parks $0 $614 Street $41,403 $45 CDBG $0 $37 Fire Impact $0 $185 Municipal $0 $1,141 General CIP $0 $36,291 Waterworks Utility $48,137 $47,563 Airport $0 $5,582 Golf Course $0 $4,457 Equipment Rental $2,048 $0 Insurance $0 $804 Totals* $97,288 $97,287 *Difference is the result of rounding individual fund numbers in the aggregate. The following is a reconciliation of interfund advances (expected to be paid within two years): Operating transfers for 2003 were as follows: Fund General Transfer In Transfer $0 Out $1,575,000 Fund General Fund Receivable $75,000 Payable $0 CDBG $0 $75,000 Leased Property $0 $880,000 Municipal Facilities $880,000 $0 Totals $955,000 $955,000 Operating transfers for 2003 were as follows: Fund General Transfer In Transfer $0 Out $1,575,000 Arterial Street 0 353,500 One Percent Art 59,300 0 General Debt 298,000 0 Special Assessment 0 732,600 Fire Impact 0 324,926 Aquatic 0 32,374 Transportation 0 533,300 Municipal 1,267,600 0 General CIP 1,886,800 0 Waterworks 40,000 0 Equipment Rental 0 359,494 Insurance Fund 359,494 0 Totals $3,911,194 $3,911,194 Basic Financial Statements 4-41 2003 Comprehensive Annual Financial Report NOTE 11. NET ASSETS City of Renton, Washington The government -wide and business type fund financial statements utilize a net asset presentation. Net assets are the difference between assets and liabilities. Net assets are categorized as investments in capital assets (net of related debt), restricted, and unrestricted. A. Investment in Capital Assets (net of related debt) is intended to reflect the portion of net assets which are associated with non -liquid, capital assets let outstanding capital asset related debt. The net related debt is the debt less the outstanding liquid assets and any associated unamortized costs. Additionally, until the infrastructure assets are reported, infrastructure related debt would reduce the investment in other non -infrastructure fixed assets. B. Restricted assets are liquid assets (generated from revenues and not bond proceeds) which have third party (statutory, bond covenant, or granting agency) limitations on their use. The City would typically use restricted assets first, as appropriated opportunities arise, but reserve the right to selectively defer the use thereof to a future project or replacement equipment acquisition. Restricted assets are as follows: C. Unrestricted assets represent unrestricted liquid assets. The City's management may have plans or tentative commitments to expend resources certain purposes in future periods. Further legal action will be required to authorize the actual expenses or expenditures. NOTE 12. PRIOR YEAR RESTATEMENTS The following fund financial statements record a prior period adjustment in the amount of $1,986,104. This was due to an error in accounting resulting in overstatement of interest earnings in the 2002 financial statements as follows: Fund Parks Fund Fund Hotel/Motel Tax Purpose Tourism $256,958 CDBG Advance of Local Government Block Grants $55,077 Community Development Impact Mitigation for Park Development $1,065,347 Fire Impact Mitigation for Fire Improvements $1,543,325 Transportation Impact Mitigation for Transportation Projects $3,895,852 Waterworks Debt Service Reserves $2,606,852 Golf Course Debt Service Reserves $441,358 Totals $9,864,769 C. Unrestricted assets represent unrestricted liquid assets. The City's management may have plans or tentative commitments to expend resources certain purposes in future periods. Further legal action will be required to authorize the actual expenses or expenditures. NOTE 12. PRIOR YEAR RESTATEMENTS The following fund financial statements record a prior period adjustment in the amount of $1,986,104. This was due to an error in accounting resulting in overstatement of interest earnings in the 2002 financial statements as follows: 4-42 Basic Financial Statements Fund Parks Fund Amount $86,444 Cable Fund $9,357 Special Assessment Fund $22,822 Downtown Parkin Fund $362,560 Fire Impact Fund $78,503 General C.I.P. Fund $86,976 Firemen's Pension $1,339,442 Total Prior Period Adjustment $1,986,104 4-42 Basic Financial Statements 2003 Comprehensive Annual Financial Report NOTE 13. SHORT TERM DEBT City of Renton, Washington Short term debt is defined as debt with a maturity of one year or less from the date of issuance. The City had no short term debt in 2003. NOTE 14. LONG TERM DEBT The City of Renton's long-term debt consists of General Obligation Debt, repaid mainly from general governmental revenue sources and Proprietary Debt, repaid from proprietary revenues. These debts are accounted for in the following areas: 1) The outstanding general obligation debt and special assessment debt are reported in the government -wide financial statements 2) The repayment, or debt service of the same, is recorded in the Debt Service Funds; and 3) The proprietary debt liability and repayment of the same are reported in individual Proprietary Funds. Outstanding debt issues as of December 31, 2003 are as follows: Type of Debt General Obligation Bonds: Limited Interest Rates Issued Date Maturity Date Original Issued Amount 1994 G O Bonds 4.60%-6.30% 12/01/94 12/01/04 $980,000 1996 G O Bonds 4.25%-5.40% 10/15/96 10/15/06 553,337 1997 G O Refunding Bonds 5.25%-5.55% 05/01/97 12/01/06 2,683,827 1997 G O Bonds 5.55%-5.75% 05/01/97 12/01/17 14,697,744 2000 G O Valley Comm Bonds 5.31% 09/15/00 12/01/15 2,551,600 2001 G O Refunding Bonds 2.10%-4.85% 10/18/01 12/01/17 13,505,000 2001 G O Bonds 4.90%-5.00% 10/18/01 12/01/21 6,000,000 2002 G O Bonds 2.50%-5.00% 7/15/02 12/01/22 3,895,000 SUBTOTAL LIMITED GO $44,866,508 Unlimited 1993 G O Refunding Bonds -Senior Housing 2.70%-5.20% 09/01/93 02/01/09 $4,270,000 SUBTOTAL UNLIMITED GO $4,270,000 TOTAL GENERAL OBLIGATION BONDS $49,136,508 Installment Contracts: Certificates of Participation 4.51% 09/01/98 06/01/08 $278,172 TOTAL INSTALLMENT CONTRACTS $278,172 TOTAL GENERAL OBLIGATION DEBT $49,414,680 Revenue Bonds: 1998 Water/Sewer Refunding 3.70%-5.10% 03/01/98 06/01/13 $6,120,000 1999 Golf System Refunding 3.25%-5.30% 04/01/99 12/01/15 5,040,000 2002 Water/Sewer 2.50%-5.25% 07/01/02 12/01/15 11,980,000 2003 Water/Sewer Refunding 2.00-3.70% 10/1/03 06/01/13 8,035,000 TOTAL REVENUE BONDS $31,175,000 Basic Financial Statements 4-43 2003 Comprehensive Annual Financial Report (Long Term Debt Continued) City of Renton, Washington Type of Debt Public Works Trust Fund Loans: Interest Rates Issued Date Maturity Date Original Issued Amount Sierra Heights Sewer Improvements 3.00% 10/20/92 07/01/12 $888,462 Central Renton Sewer Replacement 1.00% 06/14/93 07/01/15 1,631,800 East Renton Interceptor 2.00% 06/14/93 07/01/13 2,542,704 Dayton Avenue NE 2.00% 05/24/94 07/01/14 96,958 Sanitary Sewer Grouting 2.00% 05/19/94 07/01/04 349,011 NE 27t /Aberdeen Drainage Improvements 1.00% 06/27/95 07/01/15 731,000 East Kennydale Interceptor 2.00% 06/26/96 07/01/16 2,093,740 Honeycreek Interceptor 2.00% 06/26/96 07/01/16 1,840,568 Corrosion Control Treatment Facilities 1.00% 03/26/96 07/01/17 1,106,000 Maplewood Water Improvement 0.50% 1/22/02 7/1/06 425,873 Const. CT Pipeline for Wells 0.50% 11/5/02 7/1/22 522,180 TOTAL PUBLIC WORKS TRUST FUND LOANS 140,000 SUBTOTAL LIMITED GO $12,228,296 Operating Leases: $1,158,573 $29,441,010 $1,202,836 Unlimited Golf Course Lease 3.81% 4/1/03 4/1/06 $73,780 TOTAL OPERATING LEASES $3,030,000 $0 $365,000 $73,780 Employee Leave Benefits SUBTOTAL UNLIMITED GO $3,030,000 $0 $4,474,429 TOTAL AMOUNT ISSUED ON OUTSTANDING DEBT AS OF DECEMBER 31, 2003 $385,000 $97,366,185 Type of Debt Balanced Owed 01/01/2003 Additions Deductions Balanced Owed 12/31/2II Due Within One Year General Obligation Bonds: Limited 1994 G O Bonds $65,000 $0 $30,000 $35,000 $35,000 1996 G O Bonds 396,012 0 10,000 386,012 259,000 1997 G O Refunding Bonds 2,683,827 0 849,573 1,834,254 629,836 1997 G O Bonds 2,037,744 0 0 2,037,744 0 2000 G O Valley Comm Bonds 2,327,000 0 134,000 2,193,000 139,000 2001 G O Refunding Bonds 13,195,000 0 0 13,195,000 0 2001 G O Bonds 6,000,000 0 0 6,000,000 0 2002 G O Bonds 3,895,000 0 135,000 3,760,000 140,000 SUBTOTAL LIMITED GO $30,599,583 $0 $1,158,573 $29,441,010 $1,202,836 Unlimited 1993 G O Refunding Bonds- Senior Housing $3,030,000 $0 $365,000 $2,665,000 $385,000 SUBTOTAL UNLIMITED GO $3,030,000 $0 $365,000 $2,665,000 $385,000 TOTAL GENERAL OBLIGATION BONDS $33,629,583 $0 $1,523,573 $32,106,010 $1,587,836 4-44 Basic Financial Statements 2003 Comprehensive Annual Financial Report For outstanding debt additions and retirements are summarized as follows: City of Renton, Washington Type of Debt Balanced Additions Deductions Balanced Due Within Owed Owed One Year 01/01/2003 12/31/2II Installment Contracts: Certificates of Participation $167,440 $0 $27,468 $139,972 $28,722 TOTAL INSTALLMENT CONTRACTS $167,440 $0 $27,468 $139,972 $28,722 TOTAL GENERAL OBLIGATION DEBT $33,797,023 0 $1,551,041 $32,245,982 $1,616,558 Revenue Bonds: 1993 Water/Sewer $3,530,000 $0 $3,530,000 $0 $0 1993 Water/Sewer Refunding 5,650,000 0 5,650,000 0 0 1994 Water/Sewer 4201000 0 420,000 0 0 1998 Water/Sewer Reftinding 5,545,000 0 245,000 5,300,000 255,000 1999 Golf System Refunding 4,105,000 0 235,000 3,870,000 250,000 2002 Water/Sewer 11,980,000 0 115,000 11,865,000 120,000 2003 Water/Sewer 0 8,035,000 0 8,035,000 1,100,000 TOTAL REVENUE BONDS $31,230,000 $8,035,000 $10,195,000 $29,070,000 $1,725,000 Public Works Trust Fund Loans: Sierra Heights Sewer Improvements $256,425 $0 $25,642 $230,783 $25,642 Central Renton Sewer Replacement 1,066,354 0 87,484 978,870 87,483 East Renton Interceptor 1,480,270 0 134,570 1,345,700 134,570 Dayton Avenue NE 61,237 0 5,103 56,134 5,103 Sanitary Sewer Grouting 123,605 0 61,802 61,803 61,803 NE 27` /Aberdeen Drainage Improvements 553,667 0 42,590 511,077 42,590 East Kenn dale Interceptor 1,635,962 0 116,855 1,519,107 116,855 Hone creek Interceptor 1,356,208 0 96,872 1,259,336 96,872 Corrosion Control Treatment Facilities 740,354 0 49,356 690,998 491357 Maplewood Water Improvement 425,873 0 22,414 403,459 22,414 Const. CT Pipeline for Wells 522,180 0 0 522,180 27,483 TOTAL PUBLIC WORKS TRUST FUND LOANS $8,222,135 s0 $642,688 $7,579,447 $6701172 Operating Leases: Yamaha Golf Course Carts $7,238 $0 $7238 $0 $0 Golf Course Cart Lease 0 73,780 15,675 58,105 24,271 TOTAL OPERATING LEASES $7,238 $73,780 $22,913 $58,105 $24,271 Employee Leave Benefits $4,829,547 $0 $355,118 $4,474,429 $0 TOTAL OUTSTANDING DEBT $78,085,943 $8,108,780 $12,766,760 $73,427,963 $4,036,001 Basic Financial Statements 4-45 2003 Comprehensive Annual Financial Report DEEP DISCOUNT DEBT City of Renton, Washington The 1996 Limited General Obligation Bond Issue included capital appreciation bonds that are issued at a deep discount. The deep -discount debt will mature in the years 2005 and 2006 with an accreted value of $25,000 and $194,000 respectively. The deep -discount debt is reported in the Government -wide financial statements in the amount of $127,012, net of the remaining unamortized discount. The 1997 Limited General Obligation Bond issue included capital appreciation bonds that are issued at a deep discount. The deep -discount debt will mature in the years 2006, 2007, and 2008 and 2009 with an accreted value of $335,000, $1,245,000, $1,250,000 and 1,000,000, respectively. The deep -discount debt is reported in the Government -wide financial statements in the amount of $2,037,744, net of the remaining unamortized discount. SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMMITMENT As of December 31, 2003 the City of Renton has no special assessment debt outstanding. DEBT LIMIT CAPACITIES 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 5 in the Statistical Section shows the computation of legal debt margin for general and special purpose capacities for the City of Renton. REFUNDED DEBT During 2003, the City issued Water/Sewer Refunding Bonds in the amount of $8,035,000. The proceeds of the new bond issue have been place in an irrevocable trust to provide for all future debt service payments on the 1993 Water/Sewer, 1993 Water/Sewer Refunding, and 1994 Water/Sewer Bonds. The aggregate difference between the refunded and refunding debt is $924,152.19. The total economic gain is $601,198. As a result, the refunded bonds are considered to be defeased and the liability has been removed from the City's financial statements. The total amount of defeased debt outstanding and removed from the financial statements for this and prior refundings as of December 31, 2003 amounts to $29,635,000. ANNUAL DEBT SERVICE REQUIREMENTS The annual debt service requirements to maturity, including principal and interest, for long-term debt as of December 31, 2003, are as follows: Year Ending December 31 Governmental Activities Principle Interest Business -type Principle Interest 2004 $2,286,750 $1,772,476 $1,749,271 $1,203,283 2005 2,130,107 1,867,356 1,915,212 1,150,843 2006 2,111,720 1,882,916 1,958,621 1,091,562 2007 2,175,133 1,876,503 2,025,000 1,021,914 2008 2,167,921 1,872,556 2,105,000 938,700 2009-2013 11,950,206 5,969,370 10,410,000 3,392,561 2014-2018 11,151,414 2,961,453 4,820,000 1,761,365 2019-2023 5,852,176 610,329 4,145,000 553,088 Totals 39,825,427 18,812,959 $29,128,104 $11,113,316 4-46 Basic Financial Statements 2003 Comprehensive Annual Financial Report AMOUNT AVAILABLE FOR DEBT SERVICE City of Renton, Washington Fund balances that have been reserved for debt repayment are $1,879,655 in the debt service funds. DEBT LIMITATIONS Refer to Table 5 in the Statistical section for the computation of Legal Debt Margin. NOTE 15 - DEFERRED CHARGES IN PROPRIETARY FUNDS As of December 31, 2003, the Waterworks Utility Fund had deferred charges and other assets in the amount of $769,107 for debt issue costs on the 2002 Revenue and 2003 Refunding Bonds. This amount will be fully amortized by 2022. The Golf Course Fund amount was $53,697 for the 1999 Refunded Bond debt issue costs and discount. This amount will be fully amortized by 2016. NOTE 16. SEGMENT INFORMATION An identifiable activity (or grouping of activities) required to be accounted for separately, which (a) is reported as or within an enterprise fund, (b) for which one or more revenue bonds are outstanding, and (c) where the revenue stream is pledged for payment of, are required to disclose segment information. The City of Renton has no required segment information to disclose for 2003. NOTE 17. 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 one joint venture. VALLEY COMMUNICATIONS CENTER The "Valley Communications Center" 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, and Federal Way which was formally admitted during 2000. The agreement is sanctioned by the provisions and terms of the Interlocal Cooperation Act pursuant to RCW 39.34. 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 Comm, 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 which include: King County Fire Districts 2,17 (Black Diamond), 20, 26, 40, 43, 44, 47; City of Pacific Police and Fire Departments; City of Black Diamond Police Department; City of Des Moines Police Department; SeaTac Fire Department; North Highline Fire Department; King County EMS Units; and Vashon Island Fire Department. Separate agreements between Valley Com and the subscribing agencies have been executed, which set forth conditions of services and rates charged. The City of Renton reports its share of equity interest in the Governmental Activities column within the Government -wide financial statements under non-current assets. The following is condensed (unaudited) financial information as of December 31, 2003, on Valley Comm: Valley Conun Renton Interest Assets $27,528,147 22.25% Liabilities ($492,611) Total Equity $27,035,536 $4,583,651 *After removing $6,434,857 in assets not subject to the equity interest calculations. Basic Financial Statements 4-47 2003 Comprehensive Annual Financial Report City of Renton, Washington Completed Financial Statements for Valley Comm can be obtained from the Valley Communications Center, 23807 — 98th Ave South, Kent, WA 98031 NOTE 18. SUBSEQUENT EVENTS The City intends to issue, later in 2004, Water/Sewer Revenue Bonds in the amount of $10,000,000 for the construction projects. 4-48 Basic Financial Statements 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - GENERAL FUND December 31, 2003 REVENUES Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeits Interfund revenues Contributions Interest Miscellaneous revenues TOTAL REVENUES EXPENDITURES Current: General government Security of persons and property Physical environment Economic environment Mental & physical health Capital outlay TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES $ 11,965,500 $ 11,258,500 $ ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORGINIAL FINAL BASIS OVER(UNDER) BASIS $ 33,992,500 $ 33,992,500 $ 34,584,240 $ 735,768 $ 35,320,008 1,821,800 1,821,800 2,571,941 (9,134) 2,562,807 1,760,600 1,760,600 2,135,334 (7,970) 2,127,364 1,531,000 2,531,000 2,738,444 2,021 2,740,465 929,100 929,100 950,571 63,811 1,014,382 2,525,900 2,525,900 2,531,992 4,163 2,536,155 - 25,000 61,356 - 61,356 560,000 560,000 648,937 (178,943) 469,994 326,700 326,700 38,505 158 38,663 $ 43,447,600 $ 44,472,600 $ 46,261,320 $ 609,874 $ 46,871,194 $ 11,965,500 $ 11,258,500 $ 10,753,487 $ 38,346 $ 10,791,833 25,849,700 26,868,100 25,928,530 100,824 26,029,354 2,105,500 2,172,800 2,014,208 1,354 2,015,562 3,855,000 4,189,100 3,594,758 5,872 3,600,630 10,600 10,600 10,368 - 10,368 85,500 85,500 29,332 16 29,348 $ 43,871,800 $ 44,584,600 $ 42,330,683 $ 146,412 $ 42,477,095 OVER EXPENDITURES $ (424,200) $ (112,000) $ 3,930,637 $ 463,462 $ 4,394,099 OTHER FINANCING SOURCES (USES) Transfer (out) $ (1,000,000) $ (1,575,000) $ (1,575,000) $ - $ (1,575,000) Sale of capital assets - 19,129 - 19,129 TOTAL OTHER FINANCE SOURCES (USES) $ (1,000,000) $ (1,575,000) $ (1,555,871) $ - $ (1,555,871) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ (1,424,200) $ (1,687,000) $ 2,374,766 $ 463,462 $ 2,838,228 FUND BALANCE JANUARY 1 $ 1,424,200 $ 1,687,000 $ 3,789,811 $ 213,325 $ 4,003,136 FUND BALANCE DECEMBER 31 $ - $ - $ 6,164,577 $ 676,787 $ 6,841,364 The notes to the financial statements are an integral part of this statement. Required Supplemental Information 5-1 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - PARKS FUND December 31, 2003 The notes to the financial statements are an integral part of this statement. 5-2 Required Supplemental Information ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORGINIAL FINAL BASIS OVER(UNDER) BASIS REVENUES Taxes $ 8,056,200 $ 8,056,200 $ 7,733,393 $ 278,781 $ 8,012,174 Intergovernmental revenues - - 3,000 (3,000) - Charges for services 1,258,900 1,258,900 1,411,898 8,416 1,420,314 Contributions 3,000 3,000 81,643 50,000 131,643 Interest 30,000 30,000 99,072 (64,856) 34,216 Miscellaneous revenues - - 1,447 7 1,454 TOTAL REVENUES $ 9,348,100 $ 9,348,100 $ 9,330,453 $ 269,348 $ 9,599,801 EXPENDITURES Current: General government $ 2,279,000 $ 2,511,100 $ 2,403,359 $ 16,610 $ 2,419,969 Economic environment 614,100 592,000 476,810 2,172 478,982 Culture & recreation 6,357,000 6,407,100 6,088,052 2,285 6,090,337 TOTAL EXPENDITURES $ 9,250,100 $ 9,510,200 $ 8,968,221 $ 21,067 $ 8,989,288 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 98,000 $ (162,100) $ 362,232 $ 248,281 $ 610,513 FUND BALANCE JANUARY 1 - 162,100 1,276,531 142,874 1,419,405 Prior Priod Adjustment - - (86,444) (86,444) FUND BALANCES JANUARY 1 RESTATED $ - $ 162,100 $ 1,276,531 $ 56,430 $ 1,332,961 FUND BALANCE DECEMBER 31 $ 98,000 $ - $ 1,638,763 $ 304,711 $ 1,943,474 The notes to the financial statements are an integral part of this statement. 5-2 Required Supplemental Information 2003 Comprehensive Annual Financial Report City of Renton, Washington NON -MAJOR FUNDS Governmental Funds 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. STREET FUND The Street Fund was established pursuant to state law to account for maintenance and improvements of the City's street and traffic control systems. Major sources of support are general revenues and state levied taxes on motor vehicle fuels distributed to the City of Renton. COMMUNITY DEVELOPMENT BLOCK GRANT FUND The Community Development Block Grant Fund was established to administer the federally funded Community Development Block Grant activity. LIBRARY FUND Accounts for operation of the City's library system, including central and branch facilities. Resources to the fund are mainly general tax revenues and library fines. 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. PATHS AND TRAILS RESERVE FUND The Paths and Trails Reserve Fund was created for the purpose of planning, accommodating, and establishing and maintaining certain paths and trails within the City of Renton. One-half of one - percent (1 /2 of I%) of the State levied motor vehicle fuel tax distributed to the City is allocated to this fund each year. ONE PERCENT FOR ART FUND The City of Renton established this fund by contributing 1% of general governmental capital project funding for art projects. CABLE COMMUNICATIONS DEVELOPMENT FUND The Cable Communications Development Fund accounts for funding for promotion and development of cable communications as established by City ordinance. Combining Fund Statements & Schedules 6-1 2003 Comprehensive Annual Financial Report City of Renton, Washington Debt Service Funds 1997 LIMITED GENERAL OBLIGATION BOND REDEMPTION FUND Accounts for debt service on a Council -approved bond issue, which provided funding for the purchase of Renton City Hall. (2001 GO Refund Bonds) 1978 LIMITED GENERAL OBLIGATION BOND REDEMPTION FUND Accounts for debt service on a Council -approved bond issue, which provided partial funding for construction of the Renton Senior Activity Center. (1997 GO Refunding Bonds) GENERAL GOVERNMENTAL MISCELLANEOUS DEBT SERVICE FUND Accounts for debt service on installment contracts for equipment, City Shop land purchase, the 1984 and 1985 Limited General Obligation Bond issues for equipment and the 1986 Limited Bond issued to finance a community center, library improvements, permanent financing for purchase of a golf course, acquisition of wetland property and equipment. 1989 UNLIMITED GENERAL OBLIGATION BOND REDEMPTION FUND Accounts for debt service on a voter -approved bond issue, which provided financing to; acquire, construct, rehabilitate, equip and develop low income housing for the elderly. SPECIAL ASSESSMENT DEBT FUND The Special Assessment Debt Fund accounts for the special assessment collections. 6-2 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington Capital Project Funds DOWNTOWN PARKING GARAGE Accounts for resources and expenditures related to the construction of a downtown parking facility. COMMUNITY DEVELOPMENT IMPACT MITIGATION FUND Accounts for monies collected from developers to offset impacts created by their developments to City facilities. FIRE 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. LEASED CITY PROPERTIES Accounts for revenue and expenditures related to City property leased to outside entities. AQUATIC CENTER FUND Accounts for resources and expenditures related to the construction of the Henry Moses Family Aquatic Center. MUNICIPAL FACILITIES CONSTRUCTION FUND The Municipal Facilities Construction Fund accounts for the acquisition and development of municipal facilities. Resources included general and special revenue taxes and Council -approved general obligation bonds. GENERAL GOVERNMENT CAPITAL IMPROVEMENT FUND The General Government Capital Improvement Fund accounts for revenues and expenditures for of numerous capital improvements projects, to provide infrastructure necessary for controlled growth, and to address general City needs. Primary resources include; general tax revenues, business licenses fees, federal and state grants, general obligation bond proceeds and transfers from various cumulative reserve funds. Combining Fund Statements & Schedules 6-3 2003 Comprehensive Annual Financial Report Proprietary Funds Enterprise Funds City of Renton, Washington Provides accounting for revenues and expenses which provides 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 crated after the City acquired the Maplewood Golf Course. It accounts for the operation, maintenance, debt service and capital improvements of the facility. Internal Service Funds EQUIPMENT RENTAL The Equipment Rental Fund accounts for the costs of maintaining and replacing all City vehicles and auxiliary equipment except for fire apparatus and replacement of police patrol vehicle. All equipment costs, including depreciation, are factors in calculating the rates which 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 by the Insurance Fund and rates are charged to departments based on use and/or coverage requirements. 6-4 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS December 31, 2003 Page 1 of 7 SPECIAL REVENUE FUNDS Combining Fund Statements & Schedules 6-5 ARTERIAL ASSETS STREET STREET CDBG LIBRARY Cash & cash equivalents $ 61,025 $ 783,482 $ 99,220 $ 250,464 Investments 100,156 250,391 - - Receivables (net of allowances): Taxes - 121,291 - - Customer accounts - 7,777 - - Accrued interest & penalty 330 825 - 1,433 Due from other funds - 41,403 - - Due from other governmental units - - 55,895 - TOTAL ASSETS $ 161,511 $ 1,205,169 $ 155,115 $ 251,897 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ $ 183,422 $ 24,219 $ 4,044 Taxes payable 193 - - Retainage payable 3,379 - - Due to other funds 45 37 - Interfund loans payable - 75,000 - Accrued employee leave payable 18,442 - 10,509 Total liabilities $ $ 205,481 $ 99,256 $ 14,553 Fund balances Unreserved reported in: Special revenue funds $ 161,511 $ 999,688 $ 55,859 $ 237,344 Total fund balances $ 161,511 $ 999,688 $ 55,859 $ 237,344 TOTAL LIABILITIES AND FUND BALANCES $ 161,511 $ 1,205,169 $ 155,115 $ 251,897 Combining Fund Statements & Schedules 6-5 2003 Comprehensive Annual Financial Report City of Renton, Washington COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS December 31, 2003 Page 2 of 7 SPECIAL REVENUE FUNDS 6-6 Combining Fund Statements & Schedules HOTEL/ PATHS & ONE PERCENT CABLE COMM. TOTAL ASSETS MOTEL TAX TRAILS ART & DEVELOPMENT SRF Cash &cash equivalents $ 244,112 $ 2,806 $ 96,413 $ 98,623 $ 1,636,145 Investments - - - 100,000 450,547 Receivables (net of allowances): Taxes - - 121,291 Customer accounts 42,846 - - 50,623 Accrued interest & penalty - 5,270 2,020 9,878 Due from other funds - - 41,403 Due from other governmental units - - - - 55,895 TOTAL ASSETS $ 286,958 $ 2,806 $ 101,683 $ 200,643 $ 2,365,782 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 1,564 $ - $ - $ 2,485 $ 215,734 Taxes payable - - 193 Retainage payable 3,379 Due to other funds 82 Advances payable to other funds 75,000 Accrued employee leave payable - - 28,951 Total liabilities $ 1,564 $ - $ - $ 2,485 $ 323,339 Fund balances Unreserved reported in: Special revenue funds $ 285,394 $ 2,806 $ 101,683 $ 198,158 $ 2,042,443 Total fund balances $ 285,394 $ 2,806 $ 101,683 $ 198,158 $ 2,042,443 TOTAL LIABILITIES AND FUND BALANCES $ 286,958 $ 2,806 $ 101,683 $ 200,643 $ 2,365,782 6-6 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS December 31, 2003 Page 3 of 7 DEBT SERVICE FUNDS City of Renton, Washington Combining Fund Statements & Schedules 6-7 1997 LGO BOND 1978 LGO BOND ASSETS REDEMPTION REDEMPTION Cash & cash equivalents $ 13,536 $ 25,059 Cash with fiscal agent - - Investments - Receivables (net of allowances): Taxes - Accrued interest & penalty - Special assessments - Restricted assets: Special assessments deferred - - TOTAL ASSETS $ 13,536 $ 25,059 LIABILITIES AND FUND BALANCES Liabilities Matured interest payable $ $ - Deferred revenue Total liabilities $ $ - Fund balances Unreserved reported in: Debt service funds $ 13,536 $ 25,059 Total fund balances $ 13,536 $ 25,059 TOTAL LIABILITIES AND FUND BALANCES $ 13,536 $ 25,059 City of Renton, Washington Combining Fund Statements & Schedules 6-7 2003 Comprehensive Annual Financial Report City of Renton, Washington COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS December 31, 2003 Page 4 of 7 DEBT SERVICE FUND 6-8 Combining Fund Statements & Schedules GENERAL 1989 UGO BOND SPECIAL TOTAL ASSETS DEBT REDEMPTION ASSESSMENT DSF Cash & cash equivalents $ 867,997 $ 574,512 $ 10,690 $ 1,491,794 Cash with fiscal agent 12,000 10,000 - 22,000 Investments 150,826 - 20,000 170,826 Receivables (net of allowances): Taxes 214,281 21,546 - 235,827 Accrued interest & penalty 20,025 - 404 20,429 Special assessments - - 5,495 5,495 Restricted assets: Special assessments deferred - - 87,568 87,568 TOTAL ASSETS $ 1,265,129 $ 606,058 $ 124,157 $ 2,033,939 LIABILITIES AND FUND BALANCES Liabilities Matured interest payable $ 12,000 $ 10,000 $ - $ 22,000 Deferred revenue - 8,128 87,568 95,696 Total liabilities $ 12,000 $ 18,128 $ 87,568 $ 117,696 Fund balances Unreserved reported in: Debt service funds $ 1,253,129 $ 587,930 $ 36,589 $ 1,916,243 Total fund balances $ 1,253,129 $ 587,930 $ 36,589 $ 1,916,243 TOTAL LIABILITIES AND FUND BALANCES $ 1,265,129 $ 606,058 $ 124,157 $ 2,033,939 6-8 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington Combining Fund Statements & Schedules 6-9 COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS December 31, 2003 Page 5 of 7 CAPITAL PROJECT FUNDS DOWNTOWN C.D. IMPACT FIRE IMPACT TRANS. IMPACT ASSETS PARKING MITIGATION MITIGATION MITIGATION Cash & cash equivalents $ 1,371,368 $ 560,080 $ 2,968 $ 1,634,186 Investments 1,000,000 500,781 1,653,555 2,229,414 Receivables (net of allowances): Taxes - - - - Customer accounts - - - - Accrued interest & penalty 14,802 4,486 46,440 32,252 Due from other governmental units - - - - Restricted assets: Advances due from other funds - - - - TOTAL ASSETS $ 2,386,170 $ 1,065,347 $ 1,702,963 $ 3,895,852 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 8,487 $ - $ 5,819 $ - Taxes payable - - - - Retainage payable 330,235 - 153,634 - Due to other funds - - 185 - Interfund loans payable - - - - Totalliabilities $ 338,722 $ - $ 159,638 $ - Fund balances Reserved for: Advances to other funds - - - - Unreserved reported in: Capital projects funds $ 2,047,448 $ 1,065,347 $ 1,543,325 $ 3,895,852 Total fund balances $ 2,047,448 $ 1,065,347 $ 1,543,325 $ 3,895,852 TOTAL LIABILITIES AND FUND BALANCES $ 2,386,170 $ 1,065,347 $ 1,702,963 $ 3,895,852 Combining Fund Statements & Schedules 6-9 2003 Comprehensive Annual Financial Report City of Renton, Washington COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS December 31, 2003 Page 6 of 7 CAPITAL PROJECT FUNDS 6-10 Combining Fund Statements & Schedules LEASED AQUATIC MUNICIPAL GENERAL TOTAL ASSETS PROPERTY CENTER FACILITIES C.I.P. CPF Cash & cash equivalents $ 190,340 $ 49,756 $ 1,967,555 $ 4,570,419 $ 10,346,672 Investments - 1,349,713 3,248,278 4,002,420 13,984,161 Receivables (net of allowances): Taxes - - 214,281 - 214,281 Customer accounts 1,643 - - - 1,643 Accrued interest & penalty - 23,244 76,424 20,346 217,994 Due from other governmental units - - - 154,186 154,186 Restricted assets: - Advances due from other funds - - 880,000 - 880,000 TOTAL ASSETS $ 191,983 $ 1,422,713 $ 6,386,538 $ 8,747,371 $ 25,798,937 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ - $ 14,157 $ 143,635 $ 263,563 $ 435,661 Taxes payable 30,544 - - - 30,544 Retainage payable 1,739 154,187 112,869 153,939 906,603 Due to other funds - - 1,141 36,291 37,617 Advances payable to other funds 880,000 - - - 880,000 Total liabilities $ 912,283 $ 168,344 $ 257,645 $ 453,793 $ 2,290,425 Fund balances Reserved for: Advances to other funds - - 880,000 - 880,000 Unreserved reported in: Capital projects funds $ (720,300) $ 1,254,369 $ 5,248,893 $ 8,293,578 $ 22,628,512 Total fund balances $ (720,300) $ 1,254,369 $ 6,128,893 $ 8,293,578 $ 23,508,512 TOTAL LIABILITIES AND FUND BALANCES $ 191,983 $ 1,422,713 $ 6,386,538 $ 8,747,371 $ 25,798,937 6-10 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS December 31, 2003 Page 7 of 7 Combining Fund Statements & Schedules 6-11 TOTAL OTHER TOTAL TOTAL TOTAL GOVERNMENTAL ASSETS SRF DSF CPF FUNDS Cash & cash equivalents $ 1,636,145 $ 1,491,794 $ 10,346,672 $ 13,474,611 Cash with fiscal agent - 22,000 - 22,000 Investments 450,547 170,826 13,984,161 14,605,534 Receivables (net of allowances): Taxes 121,291 235,827 214,281 571,399 Customer accounts 50,623 - 1,643 52,266 Accrued interest & penalty 9,878 20,429 217,994 248,301 Special assessments - 5,495 - 5,495 Due from other funds 41,403 - - 41,403 Due from other governmental units 55,895 154,186 210,081 Restricted assets: Advances due from other funds - - 880,000 880,000 Special assessments deferred - 87,568 - 87,568 TOTAL ASSETS $ 2,365,782 $ 2,033,939 $ 25,798,937 $ 30,198,658 LIABILITIES AND FUND BALANCES - Liabilities - Accounts payable $ 215,734 $ - $ 435,661 $ 651,395 Taxes payable 193 30,544 30,737 Retainage payable 3,379 906,603 909,982 Due to other funds 82 - 37,617 37,699 Matured interest payable - 22,000 - 22,000 Interfund loans payable 75,000 - 880,000 955,000 Deferred revenue - 95,696 - 95,696 Accrued employee leave payable 28,951 - - 28,951 Total liabilities $ 323,339 $ 117,696 $ 2,290,425 $ 2,731,460 Fund balances Reserved for: Advances to other funds - - 880,000 880,000 Unreserved reported in: Special revenue funds 2,042,443 - - 2,042,443 Debt service funds - 1,916,243 - 1,916,243 Capital projects funds - - 22,628,512 22,628,512 Total fund balances $ 2,042,443 $ 1,916,243 $ 23,508,512 $ 27,467,198 TOTAL LIABILITIES AND FUND BALANCES $ 2,365,782 $ 2,033,939 $ 25,798,937 $ 30,198,658 Combining Fund Statements & Schedules 6-11 2003 Comprehensive Annual Financial Report City of Renton, Washington COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OTHER GOVERNMENTAL FUNDS December 31, 2003 Page 1 of 7 SPECIAL REVENUE FUNDS ARTERIAL STREET STREET CDBG LIBRARY REVENUES Taxes $ $ 3,883,907 $ $ 1,435,471 Licenses and permits 32,656 - Intergovernmental revenues 358,239 766,176 311,859 - Charges for services - - - 9,320 Fines and forfeits - - 41,182 Interfund revenues 945,955 - - Contributions - - - 4,178 Interest 1,899 6,836 - - Miscellaneous revenues (1) 99 1 98 TOTAL REVENUES $ 360,137 $ 5,635,629 $ 311,860 $ 1,490,249 EXPENDITURES Current: Transportation $ - $ 4,461,387 $ - $ - Economic environment - 311,897 - Culture & recreation - - 1,472,206 Capital outlay 1,135,452 - TOTAL EXPENDITURES $ - $ 5,596,839 $ 311,897 $ 1,472,206 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 360,137 $ 38,790 $ (37) $ 18,043 OTHER FINANCING SOURCES (USES) Transfer in $ - $ - $ - $ - Transfer (out) (353,500) TOTAL OTHER FINANCE SOURCES (USES) $ (353,500) $ - $ EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ 6,637 $ 38,790 $ FUND BALANCE JANUARY 1 $ 154,874 $ 960,898 $ Prior Period Adjustment - - FUND BALANCE JANUARY 1 RESTATED $ 154,874 $ 960,898 $ (37) $ 18,043 55,896 $ 219,301 55,896 $ 219,301 FUND BALANCE DECEMBER 31 $ 161,511 $ 999,688 $ 55,859 $ 237,344 6-12 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OTHER GOVERNMENTAL FUNDS December 31, 2003 Page 2 of 7 SPECIAL REVENUE FUNDS REVENUES Taxes $ Licenses and permits Intergovernmental revenues Charges for services Fines and forfeits Interfund revenues Contributions Interest Miscellaneous revenues TOTAL REVENUES $ EXPENDITURES Current: Transportation $ Economic environment Culture & recreation Capital outlay TOTAL EXPENDITURES $ EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ OTHER FINANCING SOURCES (USES) Transfer in $ Transfer (out) TOTAL OTHER FINANCE SOURCES (USES) $ EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER HOTEL/ PATHS & ONE PERCENT CABLE COMM. TOTAL MOTEL TAX TRAILS ART & DEVELOPMENT SRF 143,960 $ - $ - $ 30,000 $ 5,493,338 - - - 32,656 - $ - 1,436,274 201,349 - 9,320 - 41,182 - - - 945,955 57,925 - - 62,103 15,209 - 6,239 4,051 34,234 217,094 $ - $ 6,239 $ 34,051 $ 8,055,259 - $ - $ - $ - $ 4,461,387 201,349 - - 513,246 - - - 23,393 1,495,599 - 45,701 - 1,181,153 201,349 $ - $ 45,701 $ 23,393 $ 7,651,385 - $ 10,658 $ 403,874 (39,462) $ 15,745 $ $ - $ 59,300 $ - $ 59,300 - - (353,500) $ - $ 59,300 $ $ (294,200) EXPENDITURES & OTHER FINANCING USES $ 15,745 $ - $ 19,838 $ 10,658 $ 109,674 FUND BALANCE JANUARY 1 $ 269,649 $ 2,806 $ 81,845 $ 196,857 $ 1,942,126 Prior Period Adjustment - - - (9,357) (9,357) FUND BALANCE JANUARY 1 RESTATED $ 269,649 $ 2,806 $ 81,845 $ 187,500 $ 1,932,769 FUND BALANCE DECEMBER 31 $ 285,394 $ 2,806 $ 101,683 $ 198,158 $ 2,042,443 Combining Fund Statements & Schedules 6-13 2003 Comprehensive Annual Financial Report City of Renton, Washington COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OTHER GOVERNMENTAL FUNDS December 31, 2003 Page 3 of 7 DEBT SERVICE FUNDS 1997 LGO BOND 1978 LGO BOND REDEMPTION REDEMPTION REVENUES Taxes $ 654,301 $ 35,101 Special assessments - - Interest - 242 TOTAL REVENUES $ 654,301 $ 35,343 EXPENDITURES Debt service: Principal payment $ - $ 24,553 Interest payment 652,064 9,992 TOTAL EXPENDITURES $ 652,064 $ 34,545 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 2,237 $ 798 OTHER FINANCING SOURCES (USES) Transfer in $ - $ - Transfer (out) - TOTAL OTHER FINANCE SOURCES (USES) $ - $ - EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ 2,237 $ 798 FUND BALANCE JANUARY 1 $ 11,299 $ 24,261 Prior period adjustment - - FUND BALANCE JANUARY 1 RESTATED $ 11,299 $ 24,261 FUND BALANCE DECEMBER 31 $ 13,536 $ 25,059 6-14 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OTHER GOVERNMENTAL FUNDS December 31, 2003 Page 4 of 7 DEBT SERVICE FUND GENERAL 1989 UGO BOND SPECIAL TOTAL DEBT REDEMPTION ASSESSMENT DSF REVENUES Taxes $ 1,952,967 $ 525,750 $ - $ 3,168,119 Special assessments - - 295,673 295,673 Interest 35,632 9,002 9,206 54,082 TOTAL REVENUES $ 1,988,599 $ 534,752 $ 304,879 $ 3,517,874 EXPENDITURES Debt service: Principal payment $ 1,027,489 $ 365,000 $ - $ 1,417,042 Interest payment 949,525 142,921 3,000 1,757,502 TOTAL EXPENDITURES $ 1,977,014 $ 507,921 $ 3,000 $ 3,174,544 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ OTHER FINANCING SOURCES (USES) Transfer in $ Transfer (out) TOTAL OTHER FINANCE SOURCES (USES) $ EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ FUND BALANCE JANUARY 1 $ Prior period adjustment FUND BALANCE JANUARY 1 RESTATED $ 298,000 $ - $ - $ 298,000 - - (732,600) (732,600) 298,000 $ 309,585 $ 26,831 $ (430,721) $ (91,270) 943,544 $ 561,099 $ 490,132 $ 2,030,335 - - (22,822) (22,822) FUND BALANCE DECEMBER 31 $ 1253,129 $ 587,930 $ 36,589 $ 1,916,243 Combining Fund Statements & Schedules 6-15 2003 Comprehensive Annual Financial Report City of Renton, Washington COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OTHER GOVERNMENTAL FUNDS December 31, 2003 Page 5 of 7 CAPITAL PROJECT FUNDS DOWNTOWN C.D. IMPACT FIRE IMPACT TRANS. IMPACT REVENUES Taxes $ $ Licenses and permits Intergovernmental revenues Charges for services 832 Interest 130,212 Miscellaneous revenues - TOTAL REVENUES $ 131,044 $ EXPENDITURES Current: General government $ - $ Economic environment - Capital outlay 2,297,939 Debt service: Interest payment - TOTAL EXPENDITURES $ 2,297,939 $ EXCESS (DEFICIENCY) OF REVENUES 476,603 13,989 490,592 $ 992,272 992,272 $ 371,680 388,768 75,084 13,181 446,764 $ 401,949 3,384,510 179,025 OVER EXPENDITURES $ (2,166,895) $ (501,680) $ (2,937,746) $ OTHER FINANCING SOURCES (USES) Transfer in $ $ Transfer (out) Sale of capital assets TOTAL OTHER FINANCE SOURCES (USES) $ $ EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ (2,166,895) $ 222,924 (324,926) (533,300) $ (324,926) $ (533,300) (501,680) $ (3,262,672) $ (310,376) FUND BALANCE JANUARY 1 4,576,903 1,567,027 4,884,500 4,206,228 Prior period adjustment (362,560) - (78,503) - FUND BALANCE JANUARY 1 RESTATED $ 4,214,343 $ 1,567,027 $ 4,805,997 $ 4,206,228 FUND BALANCE DECEMBER 31 $ 2,047,448 $ 1,065,347 $ 1,543,325 $ 3,895,852 6-16 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OTHER GOVERNMENTAL FUNDS December 31, 2003 Page 6 of 7 CAPITAL PROJECT FUNDS REVENUES Taxes Licenses and permits Intergovernmental revenues Charges for services Interest Miscellaneous revenues TOTAL REVENUES EXPENDITURES Current: General government Economic environment Capital outlay Debt service: Interest payment TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES LEASED AQUATIC MUNICIPAL GENERAL TOTAL PROPERTY CENTER FACILITIES C.I.P. CPF $ $ 34,474,599 $ 1,728,683 $ - $ 1,728,683 23,508,512 - 1,631,420 1,631,420 - 969,906 969,906 573,774 980 33,968 1,846,605 - 41,653 192,013 22,762 488,894 $ 573,774 $ 41,653 $ 1,921,676 $ 2,658,056 $ 6,665,508 $ 72,153 $ $ - $ - $ 72,153 - 20,729 - 20,729 - 3,743,601 4,867,961 4,413,725 19,879,033 75,600 - - - 75,600 d, 44� 0' Ao Cn4 Q` 4 000 Gnn N 4 440 Inc 0 nn nA7 C4c $ 426,021 $ (3,701,948) $ (2,967,014) $ (1,755,669) $ (13,382,007) OTHER FINANCING SOURCES (USES) Transfer in $ Transfer (out) Sale of capital assets TOTAL OTHER FINANCE SOURCES (USES) $ EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER $ $ 1,267,600 $ 1,886,800 $ 3,154,400 (32,374) - - (890,600) EXPENDITURES & OTHER FINANCING USES $ 426,221 $ (3,734,322) $ (1,547,494) $ 131,131 $ (10,966,087) FUND BALANCE JANUARY 1 (1,146,521) 4,988,691 7,676,387 8,249,423 35,002,638 Prior period adjustment - - (86,976) (528,039) FUND BALANCE JANUARY 1 RESTATED $ (1,146,521) $ 4,988,691 $ 7,676,387 $ 8,162,447 $ 34,474,599 FUND BALANCE DECEMBER 31 $ (720,300) $ 1,254,369 $ 6,128,893 $ 8,293,578 $ 23,508,512 Combining Fund Statements & Schedules 6-17 2003 Comprehensive Annual Financial Report City of Renton, Washington COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OTHER GOVERNMENTAL FUNDS December 31, 2003 Page 7 of 7 REVENUES Taxes $ Licenses and permits Intergovernmental revenues Charges for services Fines and forfeits Interfund revenues Special assessments Contributions Interest Miscellaneous revenues TOTAL REVENUES $ EXPENDITURES Current: General government $ Transportation Economic environment Culture & recreation Capital outlay Debt service: Principal payment Interest payment TOTAL EXPENDITURES $ EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ OTHER FINANCING SOURCES (USES) Transfer in $ Transfer (out) Sale of capital assets TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ 72,153 TOTAL OTHER TOTAL TOTAL TOTAL GOVERNMENTAL SRF DSF CPF FUNDS 5,493,338 $ 3,168,119 $ 1,728,683 $ 10,390,140 32,656 - 1,631,420 1,664,076 1,436,274 1,417,042 969,906 2,406,180 9,320 1,757,502 1,846,605 1,855,925 41,182 $ 3,174,544 - 41,182 945,955 - $ (13,382,007) 945,955 - 295,673 $ 3,154,400 295,673 62,103 - - 62,103 34,234 54,082 488,894 577,210 197 - - 197 8,055,259 $ 3,517,874 $ 6,665,508 $ 18,238,641 - $ - $ 72,153 $ 72,153 4,461,387 - - 4,461,387 513,246 - 20,729 533,975 1,495,599 - - 1,495,599 1,181,153 - 19,879,033 21,060,186 - 1,417,042 - 1,417,042 - 1,757,502 75,600 1,833,102 7,651,385 $ 3,174,544 $ 20,047,515 $ 30,873,444 403,874 $ 343,330 $ (13,382,007) $ (12,634,803) 59,300 $ 298,000 $ 3,154,400 $ 3,511,700 (353,500) (732,600) (890,600) (1,976,700) 152,120 152,120 1294 200) $ (434 600) $ 2 415 920 1, 1 687 120 6-18 Combining Fund Statements & Schedules EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ 109,674 $ (91,270) $ (10,966,087) $ (10,947,683) FUND BALANCE JANUARY 1 1,942,126 2,030,335 35,002,638 38,975,099 Prior period adjustment (9,357) (22,822) (528,039) (560,218) FUND BALANCE JANUARY 1 RESTATED $ 1,932,769 $ 2,007,513 $ 34,474,599 $ 38,414,881 FUND BALANCE DECEMBER 31 $ 2,042,443 $ 1,916,243 $ 23,508,512 $ 27,467,198 6-18 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - ARTERIAL STREET FUND December 31. 2003 Combining Fund Statements & Schedules 6-19 ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Intergovernmental revenues $ 348,500 $ 348,500 $ 358,239 $ - $ 358,239 Interest 5,000 5,000 1,876 23 1,899 Miscellaneous revenues - - - (1) (1) TOTAL REVENUES $ 353,500 $ 353,500 $ 360,115 $ 22 $ 360,137 TOTAL EXPENDITURES $ - $ - $ - $ - $ - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 353,500 $ 353,500 $ 360,115 $ 22 $ 360,137 OTHER FINANCING SOURCES (USES) Transfer (out) $ (353,500) $ (353,500) $ (353,500) $ - $ (353,500) TOTAL OTHER FINANCE SOURCES (USES) $ (353,500) $ (353,500) $ (353,500) $ - $ (353,500) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ $ $ 6,615 $ 22 $ 6,637 FUND BALANCE JANUARY 1 $ $ $ 154,411 $ 463 $ 154,874 FUND BALANCE DECEMBER 31 $ $ $ 161,026 $ 485 $ 161,511 Combining Fund Statements & Schedules 6-19 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - STREET FUND December 31, 2003 6-20 Combining Fund Statements & Schedules ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Taxes $ 4,101,300 $ 4,101,300 $ 3,762,615 $ 121,292 $ 3,883,907 Licenses and permits 30,000 30,000 43,558 (10,902) 32,656 Intergovernmental revenues 778,700 778,700 766,176 - 766,176 Interfund revenues 956,400 956,400 933,875 12,080 945,955 Interest 20,000 20,000 6,779 57 6,836 Miscellaneous revenues 25,000 25,000 95 4 99 TOTAL REVENUES $ 5,911,400 $ 5,911,400 $ 5,513,098 $ 122,531 $ 5,635,629 EXPENDITURES Current: Transportation $ 4,652,400 $ 4,984,400 $ 4,422,996 $ 38,391 $ 4,461,387 Capital outlay 1,259,000 1,228,300 1,135,452 - 1,135,452 TOTAL EXPENDITURES $ 5,911,400 $ 6,212,700 $ 5,558,448 $ 38,391 $ 5,596,839 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ - $ (301,300) $ (45,350) $ 84,140 $ 38,790 TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - $ - EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ $ (301,300) $ (45,350) $ 84,140 $ 38,790 FUND BALANCE JANUARY 1 $ $ 301,300 $ 936,498 $ 24,400 $ 960,898 FUND BALANCE DECEMBER 31 $ - $ - $ 891,148 $ 108,540 $ 999,688 6-20 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - COMMUNITY DEVELOPMENT BLOCK GRANT FUND December 31. 2003 Combining Fund Statements & Schedules 6-21 ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Intergovernmental revenues $ 305,000 $ 336,561 $ 317,647 $ (5,788) $ 311,859 Miscellaneous revenues - - - 1 1 TOTAL REVENUES $ 305,000 $ 336,561 $ 317,647 $ (5,787) $ 311,860 EXPENDITURES Current: Economic environment $ 295,700 $ 336,561 $ 292,538 $ 19,359 $ 311,897 TOTAL EXPENDITURES $ 295,700 $ 336,561 $ 292,538 $ 19,359 $ 311,897 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 9,300 $ - $ 25,109 $ (25,146) $ (37) TOTAL OTHER FINANCE SOURCES (USES) $ - $ $ - $ $ EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ 9,300 $ $ 25,109 $ (25,146) $ (37) FUND BALANCE JANUARY 1 $ - $ $ (5,786) $ 61,682 $ 55,896 FUND BALANCE DECEMBER 31 $ 9,300 $ $ 19,323 $ 36,536 $ 55,859 Combining Fund Statements & Schedules 6-21 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - LIBRARY FUND December 31, 2003 6-22 Combining Fund Statements & Schedules ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Taxes $ 1,397,600 $ 1,397,600 $ 1,435,471 $ - $ 1,435,471 Charges for services 6,000 6,000 9,320 - 9,320 Fines and forfeits 28,000 28,000 41,182 - 41,182 Contributions 1,500 1,500 4,178 - 4,178 Interest 2,000 2,000 - - - Miscellaneous revenues - - 96 2 98 TOTAL REVENUES $ 1,435,100 $ 1,435,100 $ 1,490,247 $ 2 $ 1,490,249 EXPENDITURES Current: Culture & recreation $ 1,434,100 $ 1,511,300 $ 1,470,934 $ 1,272 $ 1,472,206 Capital outlay 1,000 1,000 - - - TOTAL EXPENDITURES $ 1,435,100 $ 1,512,300 $ 1,470,934 $ 1,272 $ 1,472,206 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ - $ (77,200) $ 19,313 $ (1,270) $ 18,043 TOTAL OTHER FINANCE SOURCES (USES) $ $ - $ - $ - $ - EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ $ (77,200) $ 19,313 $ (1,270) $ 18,043 FUND BALANCE JANUARY 1 $ $ 77,200 $ 227,103 $ (7,802) $ 219,301 FUND BALANCE DECEMBER 31 $ $ - $ 246,416 $ (9,072) $ 237,344 6-22 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - HOTEL/MOTEL TAX FUND December 31. 2003 Combining Fund Statements & Schedules 6-23 ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Taxes $ 130,000 $ 130,000 $ 143,960 $ - $ 143,960 Contributions 66,000 66,000 35,525 22,400 57,925 Interest 4,000 4,000 2,363 12,846 15,209 TOTAL REVENUES $ 200,000 $ 200,000 $ 181,848 $ 35,246 $ 217,094 EXPENDITURES Current: Economic environment $ 200,000 $ 261,200 $ 199,784 $ 1,565 $ 201,349 TOTAL EXPENDITURES $ 200,000 $ 261,200 $ 199,784 $ 1,565 $ 201,349 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ - $ (61,200) $ (17,936) $ 33,681 $ 15,745 TOTAL OTHER FINANCE SOURCES (USES) $ $ - $ - $ - $ - EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ $ (61,200) $ (17,936) $ 33,681 $ 15,745 FUND BALANCE JANUARY 1 $ $ 61,200 $ 262,048 $ 7,601 $ 269,649 FUND BALANCE DECEMBER 31 $ $ - $ 244,112 $ 41,282 $ 285,394 Combining Fund Statements & Schedules 6-23 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - PATHS AND TRAILS FUND December 31, 2003 6-24 Combining Fund Statements & Schedules ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS TOTAL REVENUES $ $ - $ $ $ TOTAL EXPENDITURES $ $ - $ $ $ - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ $ - $ $ $ TOTAL OTHER FINANCE SOURCES (USES) $ $ - $ $ $ EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ $ - $ $ $ FUND BALANCE JANUARY 1 $ $ - $ 2,807 $ (1) $ 2,806 FUND BALANCE DECEMBER 31 $ $ - $ 2,807 $ (1) $ 2,806 6-24 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - ONE PERCENT FOR ART FUND December 31, 2003 Combining Fund Statements & Schedules 6-25 ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Interest $ $ $ 969 $ 5,270 $ 6,239 TOTAL REVENUES $ - $ $ 969 $ 5,270 $ 6,239 EXPENDITURES Current: Capital outlay $ 75,000 $ 75,000 $ 45,701 $ - $ 45,701 TOTAL EXPENDITURES $ 75,000 $ 75,000 $ 45,701 $ - $ 45,701 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ (75,000) $ (75,000) $ (44,732) $ 5,270 $ (39,462) OTHER FINANCING SOURCES (USES) Proceeds of long-term debt $ 75,000 $ 75,000 $ - $ - $ - Transfer in - - 59,300 - 59,300 TOTAL OTHER FINANCE SOURCES (USES) $ 75,000 $ 75,000 $ 59,300 $ - $ 59,300 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ - $ - $ 14,568 $ 5,270 $ 19,838 FUND BALANCE JANUARY 1 $ - $ $ 81,845 $ - $ 81,845 FUND BALANCE DECEMBER 31 $ $ $ 96,413 $ 5,270 $ 101,683 Combining Fund Statements & Schedules 6-25 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - CABLE COMMUNICATIONS DEVELOPMENT FUND December 31, 2003 6-26 Combining Fund Statements & Schedules ACTUAL BUDGET TO GAAF ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Taxes $ 30,000 $ 30,000 $ 30,000 $ - $ 30,000 Interest 1,200 1,200 13,442 (9,391) 4,051 Miscellaneous revenues 1,500 1,500 - - TOTAL REVENUES $ 32,700 $ 32,700 $ 43,442 $ (9,391) $ 34,051 EXPENDITURES Current: Culture & recreation $ 31,600 $ 31,600 $ 23,393 $ - $ 23,393 TOTAL EXPENDITURES $ 31,600 $ 31,600 $ 23,393 $ $ 23,393 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 1,100 $ 1,100 $ 20,049 $ (9,391) $ 10,658 TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - $ - EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ 1,100 $ 1,100 $ 20,049 $ (9,391) $ 10,658 FUND BALANCE JANUARY 1 $ - $ - $ 176,090 $ 20,767 $ 196,857 Prior Period Adjustment - (9,357) (9,357) FUND BALANCE JANUARY 1 $ - $ - $ 176,090 $ 11,410 $ 187,500 FUND BALANCE DECEMBER 31 $ 1,100 $ 1,100 $ 196,139 $ 2,019 $ 198,158 6-26 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - 1997 LIMITED GENERAL OBLIGATION BOND REDEMPTION FUND (2001 GO Refund Bonds) December 31, 2003 TOTAL EXPENDITURES $ EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ TOTAL OTHER FINANCE SOURCES (USES) $ EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ FUND BALANCE JANUARY 1 $ $ - $ 2,236 $ 1 $ 2,237 $ - $ 2,236 $ 1 $ 2,237 FUND BALANCE DECEMBER 31 $ $ - $ 13,536 $ $ 13,536 Combining Fund Statements & Schedules 6-27 ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Taxes $ 654,300 $ 654,300 $ 654,300 $ 1 $ 654,301 TOTAL REVENUES $ 654,300 $ 654,300 $ 654,300 $ 1 $ 654,301 EXPENDITURES Debt service: Interest payment $ 654,300 $ 654,300 $ 652,064 $ - $ 652,064 TOTAL EXPENDITURES $ EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ TOTAL OTHER FINANCE SOURCES (USES) $ EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ FUND BALANCE JANUARY 1 $ $ - $ 2,236 $ 1 $ 2,237 $ - $ 2,236 $ 1 $ 2,237 FUND BALANCE DECEMBER 31 $ $ - $ 13,536 $ $ 13,536 Combining Fund Statements & Schedules 6-27 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - 1978 LIMITED GENERAL OBLIGATION GOND REDEMPTION FUND (1997 GO Refunding Bonds) December 31. 2003 6-28 Combining Fund Statements & Schedules ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Taxes $ 35,100 $ 35,100 $ 35,100 $ 1 $ 35,101 Interest - - 242 - 242 TOTAL REVENUES $ 35,100 $ 35,100 $ 35,342 $ 1 $ 35,343 EXPENDITURES Debt service: Principal payment $ 24,600 $ 24,600 $ 24,553 $ - $ 24,553 Interest payment 10,500 10,500 9,992 9,992 TOTAL EXPENDITURES $ 35,100 $ 35,100 $ 34,545 $ - $ 34,545 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ - $ - $ 797 $ 1 $ 798 TOTAL OTHER FINANCE SOURCES (USES) $ - $ $ - $ - $ - EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ - $ $ 797 $ 1 $ 798 FUND BALANCE JANUARY 1 $ - $ $ 24,261 $ - $ 24,261 FUND BALANCE DECEMBER 31 $ - $ $ 25,058 $ 1 $ 25,059 6-28 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - GENERAL GOVERNMENTAL MISCELLANEOUS DEBT SERVICE FUND December 31, 2003 Combining Fund Statements & Schedules 6-29 ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Taxes $ 1,551,300 $ 1,826,300 $ 1,872,686 $ 80,281 $ 1,952,967 Interest 20,000 20,000 16,884 18,748 35,632 TOTAL REVENUES $ 1,571,300 $ 1,846,300 $ 1,889,570 $ 99,029 $ 1,988,599 EXPENDITURES Debt service: Principal payment $ 1,028,500 $ 1,185,500 $ 1,161,489 $ (134,000) $ 1,027,489 Interest payment 842,800 960,800 949,525 - 949,525 TOTAL EXPENDITURES $ 1,871,300 $ 2,146,300 $ 2,111,014 $ (134,000) $ 1,977,014 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ (300,000) $ (300,000) $ (221,444) $ 233,029 $ 11,585 OTHER FINANCING SOURCES (USES) Transfer in $ 300,000 $ 300,000 $ 298,000 $ - $ 298,000 TOTAL OTHER FINANCE SOURCES (USES) $ 300,000 $ 300,000 $ 298,000 $ - $ 298,000 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ $ $ 76,556 $ 233,029 $ 309,585 FUND BALANCE JANUARY 1 $ - $ $ 942,266 $ 11278 $ 943,544 FUND BALANCE DECEMBER 31 $ $ $ 1,018,822 $ 234,307 $ 1,253,129 Combining Fund Statements & Schedules 6-29 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - 1989 UNLIMITED GENERAL OBLIGATION BOND REDEMPTION FUND (Coulon Park) December 31. 2003 6-30 Combining Fund Statements & Schedules ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Taxes $ 507,700 $ 507,700 $ 519,913 $ 5,837 $ 525,750 Interest 5,000 5,000 1,822 7,180 9,002 TOTAL REVENUES $ 512,700 $ 512,700 $ 521,735 $ 13,017 $ 534,752 EXPENDITURES Debt service: Principal payment $ 365,000 $ 365,000 $ 365,000 $ - $ 365,000 Interest payment 146,500 146,500 142,921 142,921 TOTAL EXPENDITURES $ 511,500 $ 511,500 $ 507,921 $ - $ 507,921 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 1,200 $ 1,200 $ 13,814 $ 13,017 $ 26,831 TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - $ - EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ 1,200 $ 1,200 $ 13,814 $ 13,017 $ 26,831 FUND BALANCE JANUARY 1 $ - $ - $ 560,697 $ 402 $ 561,099 FUND BALANCE DECEMBER 31 $ 1,200 $ 1,200 $ 574,511 $ 13,419 $ 587,930 6-30 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - SPECIAL ASSESSMENT DEBT FUND December 31, 2003 Combining Fund Statements & Schedules 6-31 ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Special assessments $ 293,000 $ 293,000 $ 295,673 $ - $ 295,673 Interest 41,600 41,600 39,462 (30,256) 9,206 TOTAL REVENUES $ 334,600 334,600 335,135 (30,256) 304,879 EXPENDITURES Debt service: Interest payment $ 27,000 27,000 3,000 3,000 TOTAL EXPENDITURES $ 27,000 27,000 3,000 - 3,000 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 307,600 307,600 332,135 (30,256) 301,879 OTHER FINANCING SOURCES (USES) Transfer (out) $ (307,600) (732,600) (732,600) - (732,600) TOTAL OTHER FINANCE SOURCES (USES) $ (307,600) (732,600) (732,600) - (732,600) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ (425,000) (400,465) (30,256) (430,721) FUND BALANCE JANUARY 1 $ 425,000 431,155 58,977 490,132 Prior Period Adjustment - - (22,822) (22,822) FUND BALANCE JANUARY 1 RESTATED $ 425,000 431,155 36,155 467,310 FUND BALANCE DECEMBER 31 $ $ - $ 30,690 $ 5,899 $ 36,589 Combining Fund Statements & Schedules 6-31 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - DOWNTOWN PARKING GARAGE December 31, 2003 6-32 Combining Fund Statements & Schedules ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Charges for services $ - $ - $ 832 $ - $ 832 Interest 100,000 100,000 311,992 (181,780) 130,212 TOTAL REVENUES $ 100,000 $ 100,000 $ 312,824 $ (181,780) $ 131,044 EXPENDITURES Current: Capital outlay $ - $ 3,923,575 $ 2,289,469 $ 8,470 $ 2,297,939 TOTAL EXPENDITURES $ - $ 3,923,575 $ 2,289,469 $ 8,470 $ 2,297,939 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 100,000 $ (3,823,575) $ (1,976,645) $ (190,250) $ (2,166,895) TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - $ EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ 100,000 $ (3,823,575) $ (1,976,645) $ (190,250) $ (2,166,895) FUND BALANCE JANUARY 1 $ - $ 3,823,575 $ 4,017,760 $ 559,143 $ 4,576,903 Prior Period Adjustment - - (362,560) (362,560) FUND BALANCE JANUARY 1 RESTATED $ - $ 3,823,575 $ 4,017,760 $ 196,583 $ 4,214,343 FUND BALANCE DECEMBER 31 $ 100,000 $ - $ 2,041,115 $ 6,333 $ 2,047,448 6-32 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - COMMUNITY DEVELOPMENT IMPACT MITIGATION FUND December 31. 2003 TOTAL OTHER FINANCE SOURCES (USES) $ EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ (660,000) $ (985,000) $ (501,429) $ (251) $ (501,680) FUND BALANCE JANUARY 1 $ 660,000 $ 985,000 $ 1,561,508 $ 5,519 $ 1,567,027 FUND BALANCE DECEMBER 31 $ - $ - $ 1,060,079 $ 5,268 $ 1,065,347 Combining Fund Statements & Schedules 6-33 ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Charges for services $ 250,000 $ 250,000 $ 476,603 $ - $ 476,603 Interest 40,000 40,000 14,240 (251) 13,989 TOTAL REVENUES $ 290,000 $ 290,000 $ 490,843 $ (251) $ 490,592 EXPENDITURES Capital outlay $ 950,000 $ 1,275,000 $ 992,272 $ - $ 992,272 TOTAL EXPENDITURES $ 950,000 $ 1,275,000 $ 992,272 $ - $ 992,272 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ (660,000) $ (985,000) $ (501,429) $ (251) $ (501,680) TOTAL OTHER FINANCE SOURCES (USES) $ EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ (660,000) $ (985,000) $ (501,429) $ (251) $ (501,680) FUND BALANCE JANUARY 1 $ 660,000 $ 985,000 $ 1,561,508 $ 5,519 $ 1,567,027 FUND BALANCE DECEMBER 31 $ - $ - $ 1,060,079 $ 5,268 $ 1,065,347 Combining Fund Statements & Schedules 6-33 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - FIRE IMPACT MITIGATION FUND December 31, 2003 6-34 Combining Fund Statements & Schedules ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Charges for services $ 200,000 $ 200,000 $ 371,680 $ - $ 371,680 Interest 25,000 25,000 108,027 (32,943) 75,084 TOTAL REVENUES $ 225,000 $ 225,000 $ 479,707 $ (32,943) $ 446,764 EXPENDITURES Capital outlay $ - $ 4,221,800 $ 3,379,639 $ 4,871 $ 3,384,510 TOTAL EXPENDITURES $ - $ 4,221,800 $ 3,379,639 $ 4,871 $ 3,384,510 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 225,000 $ (3,996,800) $ (2,899,932) $ (37,814) $ (2,937,746) OTHER FINANCING SOURCES (USES) Transfer (out) $ (298,000) $ (298,000) $ (324,926) $ - $ (324,926) TOTAL OTHER FINANCE SOURCES (USES) $ (298,000) $ (298,000) $ (324,926) $ - $ (324,926) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ (73,000) $ (4,294,800) $ (3,224,858) $ (37,814) $ (3,262,672) FUND BALANCE JANUARY 1 $ 73,000 $ 4,294,800 $ 4,796,546 $ 87,954 $ 4,884,500 Prior Period Adjustment - - - (78,503) (78,503) FUND BALANCE JANUARY 1 RESTATED $ 73,000 $ 4,294,800 $ 4,796,546 $ 9,451 $ 4,805,997 FUND BALANCE DECEMBER 31 $ - $ - $ 1,571,688 $ (28,363) $ 1,543,325 6-34 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL -TRANSPORTATION IMPACT MITIGATION FUND December 31, 2003 Combining Fund Statements & Schedules 6-35 ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Charges for services $ 500,000 $ 500,000 $ 388,768 $ - $ 388,768 Interest 85,000 85,000 161,347 (148,166) 13,181 TOTAL REVENUES $ 585,000 $ 585,000 $ 550,115 $ (148,166) $ 401,949 EXPENDITURES Capital outlay $ - $ - $ 179,025 $ - $ 179,025 TOTAL EXPENDITURES $ - $ - $ 179,025 $ $ 179,025 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 585,000 $ 585,000 $ 371,090 $ (148,166) $ 222,924 OTHER FINANCING SOURCES (USES) Transfer (out) $ (2,451,400) $ (2,451,400) $ (533,300) $ - $ (533,300) TOTAL OTHER FINANCE SOURCES (USES) $ (2,451,400) $ (2,451,400) $ (533,300) $ $ (533,300) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ (1,866,400) $ (1,866,400) $ (162,210) $ (148,166) $ (310,376) FUND BALANCE JANUARY 1 $ 1,866,400 $ 1,866,400 $ 4,021,396 $ 184,832 $ 4,206,228 FUND BALANCE DECEMBER 31 $ - $ - $ 3,859,186 $ 36,666 $ 3,895,852 Combining Fund Statements & Schedules 6-35 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - LEASED CITY PROPERTIES December 31, 2003 6-36 Combining Fund Statements & Schedules ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Charges for services $ 606,000 $ 606,000 $ 574,973 $ (1,199) $ 573,774 Interest 4,000 4,000 - - - TOTAL REVENUES $ 610,000 $ 610,000 $ 574,973 $ (1,199) $ 573,774 EXPENDITURES Current: General government $ 139,300 $ 176,800 $ 72,153 $ - $ 72,153 Debt service: Principal payment 320,000 320,000 380,000 (380,000) - Interest payment 57,600 57,600 75,600 - 75,600 TOTAL EXPENDITURES $ 516,900 $ 554,400 $ 527,753 $ (380,000) $ 147,753 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ 93,100 $ 55,600 $ 47,220 $ 378,801 $ 426,021 OTHER FINANCING SOURCES (USES) Sale of capital assets $ - $ - $ 200 $ - $ 200 TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ 200 $ - $ 200 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ 93,100 $ 55,600 $ 47,420 $ 378,801 $ 426,221 FUND BALANCE JANUARY 1 $ - $ - $ 110,822 $ (1,257,343) $ (1,146,521) FUND BALANCE DECEMBER 31 $ 93,100 $ 55,600 $ 158,242 $ (878,542) $ (720,300) 6-36 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - AQUATIC CENTER FUND December 31, 2003 REVENUES Interest $ TOTAL REVENUES $ EXPENDITURES Capital outlay $ TOTAL EXPENDITURES $ EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ OTHER FINANCING SOURCES (USES) Transfer (out) $ TOTAL OTHER FINANCE SOURCES (USES) $ EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ FUND BALANCE JANUARY 1 $ BUDGETED AMOUNTS ORIGINAL FINAL ACTUAL BUDGET TO GAAP ACTUAL _ BUDGETARY DIFFERENCES GAAP BASIS OVER(UNDER) BASIS - $ 76,246 $ (34,593) $ 41,653 $ 4,899,500 $ 3,743,601 $ - $ 3,743,601 $ (4,899,500) $ (3,667,355) $ (34,593) $ (3,701,948) $ - $ (32,374) $ - $ (32,374) _ $ - $ (32,374) $ - $ (32,374) - $ (4,899,500) $ (3,699,729) $ (34,593) $ (3,734,322) FUND BALANCE DECEMBER 31 $ $ - $ 1,231,412 $ 22,957 $ 1,254,369 Combining Fund Statements & Schedules 6-37 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - MUNICIPAL FACILITIES CONSTRUCTION FUND December 31, 2003 6-38 Combining Fund Statements & Schedules ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Taxes $ 1,000,000 $ 1,000,000 $ 1,380,402 $ 348,281 $ 1,728,683 Charges for services - - 980 - 980 Interest 100,000 100,000 296,191 (104,178) 192,013 Miscellaneous revenues - - - - - TOTAL REVENUES $ 1,100,000 $ 1,100,000 $ 1,677,573 $ 244,103 $ 1,921,676 EXPENDITURES Current: Economic environment $ 50,000 $ 50,000 $ 20,729 $ - $ 20,729 Capital outlay 2,896,000 8,264,700 4,715,739 152,222 4,867,961 TOTAL EXPENDITURES $ 2,946,000 $ 8,314,700 $ 4,736,468 $ 152,222 $ 4,888,690 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ (1,846,000) $ (7,214,700) $ (3,058,895) $ 91,881 $ (2,967,014) OTHER FINANCING SOURCES (USES) Proceeds of long-term debt $ - $ - $ 380,000 $ (380,000) $ - Transfer in 1,267,600 1,267,600 1,267,600 - 1,267,600 Sale of capital assets - - 151,920 - 151,920 TOTAL OTHER FINANCE SOURCES (USES) $ 1,267,600 $ 1,267,600 $ 1,799,520 $ (380,000) $ 1,419,520 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ (578,400) $ (5,947,100) $ (1,259,375) $ (288,119) $ (1,547,494) FUND BALANCE JANUARY 1 $ 578,400 $ 5,947,100 $ 6,237,509 $ 1,438,878 $ 7,676,387 FUND BALANCE DECEMBER 31 $ - $ - $ 4,978,134 $ 1,150,759 $ 6,128,893 6-38 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL - GENERAL GOVERNMENT CAPITAL IMPROVEMENT FUND December 31, 2003 Combining Fund Statements & Schedules 6-39 ACTUAL BUDGET TO GAAP ACTUAL BUDGETED AMOUNTS BUDGETARY DIFFERENCES GAAP ORIGINAL FINAL BASIS OVER(UNDER) BASIS REVENUES Licenses and permits $ 1,880,000 $ 1,880,000 $ 1,631,475 $ (55) $ 1,631,420 Intergovernmental revenues 1,261,600 1,261,600 2,129,416 (1,159,510) 969,906 Charges for services - - 59,276 (25,308) 33,968 Interest - - - 22,762 22,762 TOTAL REVENUES $ 3,141,600 $ 3,141,600 $ 3,820,167 $ (1,162,111) $ 2,658,056 EXPENDITURES Capital outlay $ 6,661,200 $ 7,661,200 $ 4,262,358 $ 151,367 $ 4,413,725 TOTAL EXPENDITURES $ 6,661,200 $ 7,661,200 $ 4,262,358 $ 151,367 $ 4,413,725 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ (3,519,600) $ (4,519,600) $ (442,191) $ (1,313,478) $ (1,755,669) OTHER FINANCING SOURCES (USES) Transfer in $ 2,804,900 $ 3,804,900 $ 1,886,800 $ $ 1,886,800 TOTAL OTHER FINANCE SOURCES (USES) $ 2,804,900 $ 3,804,900 $ 1,886,800 $ $ 1,886,800 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES & OTHER FINANCING USES $ (714,700) $ (714,700) $ 1,444,609 $ (1,313,478) $ 131,131 FUND BALANCE JANUARY 1 $ 714,700 $ 714,700 $ 6,847,291 $ 1,402,132 $ 8,249,423 Prior Period Adjustment - - - (86,976) (86,976) FUND BALANCE JANUARY 1 RESTATED $ 714,700 $ 714,700 $ 6,847,291 $ 1,315,156 $ 8,162,447 FUND BALANCE DECEMBER 31 $ - $ - $ 8,291,900 $ 1,678 $ 8,293,578 Combining Fund Statements & Schedules 6-39 2003 Comprehensive Annual Financial Report COMBINING STATEMENT OF NET ASSETS NON -MAJOR ENTERPRISE FUNDS December 31, 2003 Page 1 of 2 City of Renton, Washington 6-40 Combining Fund Statements & Schedules TOTAL NON -MAJOR AIRPORT GOLF COURSE ENTERPRISE FUNDS ASSETS Current assets: Cash &cash equivalents $ 2,024,823 $ 1,161,743 $ 3,186,566 Investments at fair value 500,000 250,000 750,000 Receivables (net of allowances): Customer accounts 37,621 22,431 60,052 Interest - investments 2,794 2,210 5,004 Due from other governmental units 313,379 - 313,379 Inventory of materials and supplies - 49,353 49,353 Total current assets $ 2,878,617 $ 1,485,737 $ 4,364,354 Restricted assets: Cash & residual investments @FMV $ - $ 441,358 $ 441,358 Total restricted assets - 441,358 441,358 Capital assets (net) 8,824,688 8,970,782 17,795,470 Deferred charges and other assets - 53,697 53,697 TOTAL ASSETS $ 11,703,305 $ 10,951,574 $ 22,654,879 6-40 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report COMBINING STATEMENT OF NET ASSETS NON -MAJOR ENTERPRISE FUNDS December 31, 2003 Page 2 of 2 LIABILITIES Current liabilities: Accounts payable $ Retainage payable Due to other funds Accrued interest payable Accrued employee benefits payable Accrued taxes payable Custodial Accounts Deferred revenue Operating leases payable Total current liabilities $ Liabilities payable from restricted assets: Revenue bonds payable - current $ Total liabilities payable from restricted assets $ Long-term liabilities: Revenue bonds payable $ Unamortized discounts on revenue bonds Accrued employee benefits payable Operating leases payable Total long-term liabilities $ TOTAL LIABILITIES $ NET ASSETS Investment in capital assets, net of related debt $ Restricted Unrestricted TnTAI NFT ARSFTS R City of Renton, Washington AIRPORT GOLF COURSE TOTAL NON -MAJOR ENTERPRISE FUNDS 84,102 $ 9,668 $ 93,770 124,873 - 124,873 5,582 4,457 10,039 - 15,935 15,935 2,592 3,111 5,703 23,019 8,188 31,207 - 70,975 70,975 44,814 - 44,814 - 24,271 24,271 284,982 $ 136,605 $ 421,587 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 3,620,000 $ 3,620,000 - (394,061) (394,061) 54,082 20,557 74,639 - 33,834 33,834 54,082 $ 3,280,330 $ 3,334,412 339,064 $ 3,666,935 $ 4,005,999 8,824,688 $ 5,402,904 $ 14,227,592 - 441,358 441,358 2,539,553 1,440,377 3,979,930 Combining Fund Statements & Schedules 6-41 2003 Comprehensive Annual Financial Report City of Renton, Washington COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS NON - MAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2003 BUSINESS -TYPE ACTIVITIES ENTERPRISE FUNDS 6-42 Combining Fund Statements & Schedules TOTAL NON -MAJOR AIRPORT GOLF COURSE ENTERPRISE FUNDS OPERATING REVENUES: Charges for services $ 733,306 $ 2,170,909 $ 2,904,215 Other services 44,232 - 44,232 TOTAL OPERATING REVENUES $ 777,538 $ 2,170,909 $ 2,948,447 OPERATING EXPENSES: Operations and maintenance $ 514,735 $ 1,117,907 $ 1,632,642 Benefit payments 77,827 200,389 278,216 Professional services 34,310 - 34,310 Administrative and general 129,960 245,913 375,873 Insurance 24,100 - 24,100 Taxes - 9,087 9,087 Depreciation 438,533 20,971 459,504 TOTAL OPERATING EXPENSES $ 1,219,465 $ 1,594,267 $ 2,813,732 OPERATING INCOME (LOSS) $ (441,927) $ 576,642 $ 134,715 NON-OPERATING REVENUES(EXPENSES): Intergovernmental revenues $ 2,523,769 $ - $ 2,523,769 Interest revenues 71,301 6,213 77,514 Other non-operating revenues (expenses) 52,730 18,309 71,039 Interest expense - (232,495) (232,495) Amortization of debt discount and expense - (4,908) (4,908) NON-OPERATING REVENUE NET OF EXPENSES $ 2,647,800 $ (212,881) $ 2,434,919 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS $ 2,205,873 $ 363,761 $ 2,569,634 Capital Contributions - 4,000 4,000 CHANGE IN NET ASSETS $ 2,205,873 $ 367,761 $ 2,573,634 NET ASSETS, JANUARY 1 $ 9,158,368 $ 6,916,878 $ 16,075,246 NET ASSETS, DECEMBER 31 $ 11,364,241 $ 7,284,639 $ 18,648,880 6-42 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report STATEMENT OF CASH FLOWS NON -MAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2003 PAGE 1 OF 2 BUSINESS -TYPE ACTIVITIES ENTERPRISE FUNDS Other operating receipts 88,464 Other non-operating receipts (260,649) NET CASH PROMDED(USED) BY OPERATING ACTIVITIES $ (114,346) $ NET CASH PROMDED(USED) BY NONCAPITAL FINANCING ACTIVITIES $ - City of Renton, Washington TOTAL NON -MAJOR GOLF COURSE ENTERPRISE FUNDS 2,169,131 $ 2,888,857 (461,942) AIRPORT CASH FLOWS FROM OPERATING ACTIVITIES: (217,128) Cash received for services $ 719,726 $ Cash received from other funds for services - $ Cash paid to suppliers for goods & services (275,694) Cash paid to other funds for goods & services (48,013) Cash paid to employees (338,180) Cash paid for city utility taxes Capital grants 2,523,769 Other operating receipts 88,464 Other non-operating receipts (260,649) NET CASH PROMDED(USED) BY OPERATING ACTIVITIES $ (114,346) $ NET CASH PROMDED(USED) BY NONCAPITAL FINANCING ACTIVITIES $ - City of Renton, Washington TOTAL NON -MAJOR GOLF COURSE ENTERPRISE FUNDS 2,169,131 $ 2,888,857 (461,942) (737,636) (169,115) (217,128) (931,118) (1,269,298) - 88,464 18,309 (242,340) 625,265 $ 510,919 CASH FLOWS FROM CAPITAL $ 2,575,000 FINANCING ACTIVITIES: Payments for investments Proceeds from the sale of equipment $ - $ - $ - Acquisition & construction of capital assets (3,303,725) (95,175) (3,398,900) Capital contributions - Capital grants 2,523,769 - 2,523,769 Principal payments on bonds - (184,133) (184,133) Interest payments on bonds - (203,541) (203,541) NET CASH PROMDED(USED) BY $ (303,666) CAPITAL FINANCING ACTIVITIES $ (779,956) $ (482,849) $ (1,262,805) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of investments $ 2,575,000 $ 1,825,000 $ Payments for investments (2,075,000) (1,375,000) Interest on investments 90,636 20,373 NET CASH PROMDED(USED) BY INVESTING ACTIVITIES $ 590,636 $ 470,373 $ NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS $ (303,666) $ 612,789 $ CASH & CASH EQUIVALENTS, JANUARY 1 $ 2,328,489 $ 990,312 $ CASH & CASH EQUIVALENTS, DECEMBER 31 $ 2,024,823 $ 1,603,101 $ 309,123 3,318,801 3,627,924 Comhining Fund Statements & Schedules 6-43 2003 Comprehensive Annual Financial Report City of Renton, Washington STATEMENT OF CASH FLOWS NON -MAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2003 PAGE 2OF2 BUSINESS -TYPE ACTIVITIES ENTERPRISE FUNDS RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation & amortization of deferred charges Other non-operating revenue (Increase)decrease in accounts receivable (Increase)decrease in due from other funds/governmental units (Increase)decrease in inventory & prepaid items Increase(decrease)in vouchers retainage payable Increase(decrease) in due to other governmental units Increase(decrease) in payables & other short-term liabilities Increase(decrease)in customer deposits Increase(decrease)in deferred revenues Increase(decrease)in accrued employee leave benefits Total adjustments NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES Borrowing under operating leases AIRPORT GOLF COURSE TOTAL NON -MAJOR ENTERPRISE FUNDS $ (441,927) $ 576,642 $ 134,715 438,533 20,971 459,504 52,730 18,309 71,039 (21,382) 879 (20,503) (269,147) (269,147) 16,278 16,278 107,373 4,588 111,961 224 4,457 4,681 (686) (1,948) (2,634) (709) (709) 8,488 8,488 11,448 (14,202) (2,754) $ 327,581 $ 48,623 $ 376,204 $ (114,346) $ 625,265 $ 510,919 $ - $ 58,105 $ 58,105 6-44 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS December 31, 2003 Page 1 of 2 ASSETS Current assets: Cash & cash equivalents Investments at fair value Receivables (net of allowances): Customer accounts Interest - investments Due from other funds Prepayments Total current assets Property, Plant, and Equipment: Capital assets (net) Total Property, Plant, and Equipment Deferred charges and other assets TOTAL ASSETS City of Renton, Washington EQUIPMENT RENTAL INSURANCE FUND TOTAL INTERNAL SERVICE FUNDS $ 1,094,852 $ 5,607,729 $ 6,702,581 2,350,000 2,000,000 4,350,000 1,083 4,875 5,958 73,911 91,742 165,653 2,048 - 2,048 77,260 3,000 80,260 $ 3,599,154 $ 7,707,346 $ 11,306,500 $ 4,651,457 $ 31,073 $ 4,682,530 $ 4,651,457 $ 31,073 $ 4,682,530 $ 8,250,611 $ 7,738,419 $ 15,989,030 Combining Fund Statements & Schedules 6-45 2003 Comprehensive Annual Financial Report LIABILITIES Current liabilities: Accounts payable Due to other funds Accrued employee benefits payable Total current liabilities Long-term liabilities: Accrued employee benefits payable Deferred revenue Total long-term liabilities TOTAL LIABILITIES NET ASSETS Investment in capital assets, net of related debt Unrestricted TOTAL NET ASSETS COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS December 31, 2003 Page 2 of 2 City of Renton, Washington EQUIPMENT RENTAL INSURANCE FUND TOTAL INTERNAL SERVICE FUNDS $ 26,455 $ 240,334 $ 266,789 - 804 804 2,917 470 3,387 $ 29,372 $ 241,608 $ 270,980 $ 19,270 $ 2,242 $ 21,512 - 2,474,749 2,474,749 $ 19,270 $ 2,476,991 $ 2,496,261 $ 48,642 $ 2,718,599 $ 2,767,241 $ 4,651,457 $ 31,073 $ 3,550,512 4,988,747 $ 8,201,969 $ 5,019,820 $ 4,682,530 8,539,259 13,221,789 6-46 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2003 Combining Fund Statements & Schedules 6-47 TOTAL EQUIPMENT INSURANCE INTERNAL RENTAL FUND SERVICE FUNDS OPERATING REVENUES: Charges for services $ 2,467,715 $ 8,444,121 $ 10,911,836 TOTAL OPERATING REVENUES $ 2,467,715 $ 8,444,121 $ 10,911,836 OPERATING EXPENSES: Operations and maintenance $ 663,958 $ 95,509 $ 759,467 Benefit payments 126,538 6,649,068 6,775,606 Professional services - 408,710 408,710 Administrative and general 612,291 393,151 1,005,442 Insurance 234,800 2,359,073 2,593,873 Taxes - 1,821 1,821 Depreciation 924,911 13,029 937,940 TOTAL OPERATING EXPENSES $ 2,562,498 $ 9,920,361 $ 12,482,859 OPERATING INCOME (LOSS) $ (94,783) $ (1,476,240) $ (1,571,023) NON-OPERATING REVENUES(EXPENSES): Interest revenues $ 52,608 $ 118,121 $ 170,729 Gain(loss) on sale of capital assets 10,555 - 10,555 Other non-operating revenues (expenses) 191 141,431 141,622 NON-OPERATING REVENUE NET OF EXPENSE $ 63,354 $ 259,552 $ 322,906 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS $ (31,429) $ (1,216,688) $ (1,248,117) Transfers in(out) $ (359,494) $ 359,494 $ CHANGE IN NET ASSETS $ (390,923) $ (857,194) $ (1,248,117) NET ASSETS, JANUARY 1 $ 8,592,892 $ 5,877,014 $ 14,469,906 NET ASSETS, DECEMBER 31 $ 8,201,969 $ 5,019,820 $ 13,221,789 Combining Fund Statements & Schedules 6-47 2003 Comprehensive Annual Financial Report COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2003 PAGE 1 OF 2 EQUIPMENT INSURANCE RENTAL FUND City of Renton, Washington TOTAL INTERNAL SERVICE FUNDS CASH FLOWS FROM OPERATING ACTIVITIES: Cash received for services $ 2,476,700 $ 8,390,015 $ 10,866,715 Cash paid to suppliers for goods & services (1,247,502) (9,224,273) (10,471,775) Cash paid to other funds for goods & services - Cash paid to employees (547,778) 109,071 (438,707) Cash paid for city utility taxes - Other operating receipts (2,048) - (2,048) Other non-operating receipts 191 102,870 103,061 NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES $ 679,563 $ (622,317) $ 57,246 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds $ (359,494) $ 359,494 $ - Advances from other funds Subsidy from federal grant - 38,561 38,561 NET CASH PROVIDED(USED) BY NONCAPITAL FINANCING ACTIVITIES $ (359,494) $ 398,055 $ 38,561 CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: Proceeds from the sale of equipment $ 40,048 $ - $ 40,048 Acquisition & construction of capital assets (609,296) - (609,296) NET CASH PROVIDED(USED) BY CAPITAL FINANCING ACTIVITIES $ (569,248) $ - $ (569,248) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of investments $ 1,188,000 $ (3,500) $ 1,184,500 Payments for investments (3,238,000) - (3,238,000) Interest on investments 23,614 104,784 128,398 NET CASH PROMDED(USED) BY INVESTING ACTIVITIES $ (2,026,386) $ 101,284 $ (1,925,102) NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS $ (2,275,565) $ (122,978) $ (2,398,543) CASH & CASH EQUIVALENTS, JANUARY 1 $ 3,370,417 $ 5,730,707 $ 9,101,124 CASH & CASH EQUIVALENTS, DECEMBER 31 $ 1,094,852 $ 5,607,729 $ 6,702,581 6-48 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2003 PAGE 2OF2 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation & amortization of deferred charges Other non-operating revenue (Increase)decrease in accounts receivable (Increase)decrease in due from other funds/governmental units (Increase)decrease in inventory & prepaid items Increase(decrease) in vouchers retainage payable Increase(decrease)in customer deposits Increase(decrease)in deferred revenues Increase(decrease)in accrued employee leave benefits Total adjustments NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES Capital asset trade-ins TOTAL EQUIPMENT INSURANCE INTERNAL RENTAL FUND SERVICE FUNDS 924,911 13,029 937,940 191 102,870 103,061 8,985 (3,559) 5,426 (2,048) - (2,048) 7,392 - 7,392 (150,229) 204,276 54,047 (50,547) (50,547) 594,244 594,244 (14,856) (6,390) (21,246) $ 774,346 $ 853,923 $ 1,628,269 29,492 - 57,246 Combining Fund Statements & Schedules 6-49 2003 Comprehensive Annual Financial Report STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND - SPECIAL DEPOSIT December 31, 2003 Page 1 of 1 City of Renton, Washington BEGINNING ENDING BALANCE DEBITS CREDITS BALANCE ASSETS Cash $ 270,195 $ 660,875 $ 714,178 $ 216,892 TOTAL ASSETS $ 270,195 $ 660,875 $ 714,178 $ 216,892 LIABILITIES Vouchers Payable $ 1,428 $ 391,789 $ 390,361 $ - Deposits Payable 268,767 712,751 660,876 216,892 TOTAL LIABILITIES $ 270,195 $ 1,104,540 $ 1,051,237 $ 216,892 6-50 Combining Fund Statements & Schedules 2003 Comprehensive Annual Financial Report City of Renton, Washington STATISTICAL SECTION December 31, 2003 Presentations included in the Statistical Section of the Comprehensive Annual Financial Report (CAFR) provide detailed data on the physical, economic, social, and political characteristics of the reporting government. They are intended to provide CAFR users with a broader and more complete understanding of the government and its financial affairs than is possible from the financial statements and supporting schedules included in the Financial Section. Statistical tables usually cover more than two fiscal years and often present data from outside the accounting records. Therefore, in contrast to financial section information, statistical section data are not usually susceptible to independent audit. Statistical Section 7-1 2003 Comprehensive Annual Financial Report City of Renton, Washington TABLE 1: GENERAL GOVERNMENT REVENUES AND EXPENDITURES BY FUNCTION, INCLUDING CHANGES IN FUND BALANCES - LAST TEN FISCAL YEARS, FOR GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS (PAGE I of 2) Ten Year Annual General Governmental Revenue Trends M $80 1994 1995 1 $70 1997 I I $60 Taxes $ 0 $ 33,970,167 $ 36,226,318 n $50 37,903,857 Licenses and Permits s 1,310,570 1,236,046 $40 2,145,849 Intergovernmental Revenues 4,998,676 f $30 4,044,611 D $20 0 oil o ME 5,344,029 $10 I 5,546,295 Fines and Forfeits a $0 ME E—ENEENE1 998,553 s 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 DESCRIPTION 1994 1995 1996 1997 REVENUES Taxes $ 30,785,983 $ 33,970,167 $ 36,226,318 $ 37,903,857 Licenses and Permits 1,310,570 1,236,046 1,569,007 2,145,849 Intergovernmental Revenues 4,998,676 4,343,249 4,044,611 4,164,921 Charges for Services 1,543,902 4,818,352 5,344,029 5,546,295 Fines and Forfeits 1,107,779 998,553 958,082 733,561 Miscellaneous 2,835,811 3,080,883 3,513,802 3,601,057 TOTAL REVENUES $ 42,582,721 $ 48,447,250 $ 51,655,849 $ 54,095,540 EXPENDITURES General Government $ 5,998,922 $ 7,807,624 $ 8,420,834 $ 8,675,215 Security of Persons and Property 17,272,774 17,187,719 18,344,175 19,249,622 Physical Environment 999,985 1,520,374 1,759,571 1,708,461 Transportation 3,422,909 4,947,622 4,509,833 4,896,235 Economic Environment 3,524,258 3,606,022 3,022,503 3,414,034 Mental and Physical Health 10,755 7,843 5,746 7,570 Culture and Recreation 4,946,035 5,130,721 5,429,238 5,592,278 Capital Outlay 547,281 494,585 2,302,888 3,496,515 Debt Service 4,289,678 3,347,293 3,933,368 3,547,127 TOTAL EXPENDITURES $ 41,012,597 $ 44,049,803 $ 47,728,156 $ 50,587,057 Other Increases (Decreases) (335,802) (2,336,448) (1,129,720) (5,110,847) Transfer In/Out 0 (260,482) (544,504) 0 FUND BALANCE, JANUARY 1 14,631,484 15,845,156 17,645,773 19,899,242 FUND BALANCE DECEMBER 31 15,865,806 17,645,673 19,899,242 18,296878 Source: city of Denton Finance uepartment. 7-2 Statistical Section 2003 Comprehensive Annual Financial Report City of Renton, Washington TABLE 1: GENERAL GOVERNMENT REVENUES AND EXPENDITURES BY FUNCTION, INCLUDING CHANGES IN FUND BALANCES - LAST TEN FISCAL YEARS, FOR GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS (PAGE 2 of 2) M $25 $20 0 n S $15 0 f $10 D 0 $5 a r $0 S Ten Year Annual General Governmental Endina Fund 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Statistical Section 7-3 1998 1999 2000 2001 2002 2003 $ 40,061,373 $ 42,807,838 $ 46,365,818 $ 48,802,624 $ 48,732,975 $ 51,993,639 2,086,727 1,745,899 2,630,315 2,151,168 2,407,240 2,595,463 4,184,545 3,600,258 3,738,843 3,323,816 3,326,630 3,563,638 7,699,258 5,488,634 5,821,977 5,828,449 6,305,504 4,170,099 722,054 831,327 1,008,098 978,717 987,167 1,055,564 5,139,563 2,668,990 2,742,896 2,735,525 1,370,303 4,665,725 $ 59,893,520 $ 57,142,946 $ 62,307,947 $ 63,820,299 $ 63,129,819 $ 68,044,128 $ 9,915,676 $ 9,972,040 $ 10,648,052 $ 11,062,898 $ 12,395,939 $ 13,211,802 20,074,074 21,336,276 22,861,304 23,596,319 24,926,075 26,029,354 1,730,735 1,892,549 1,769,012 1,878,916 1,897,165 2,015,562 4,838,713 5,130,703 5,118,420 5,545,590 5,642,823 4,461,387 4,060,970 3,792,464 4,327,075 4,477,535 4,652,823 4,592,858 10,962 8,486 8,599 6,756 11,445 10,368 5,804,099 6,159,132 6,602,437 7,260,078 7,381,335 7,585,936 4,881,689 717,037 315,324 176,202 60,978 1,210,501 3,413,505 4,053,582 3,686,306 3,089,491 3,103,299 3,174,544 $ 54,730,423 $ 53,062,269 $ 55,336,529 $ 57,093,785 $ 60,071,882 $ 62,292,312 (7,308,428) (2,428,669) (2,469,837) (7,384,761) (7,670,995) (2,284,671) 63,110 (6,315,060) (955,000) 0 0 0 18,296,878 16,005,236 11,342,184 14,888,765 14,230,518 9,276,379 16,214,657 11,342,184 14,888,765 14,230,518 9,617,460 12 743 524 Statistical Section 7-3 2003 Comprehensive Annual Financial Report City of Renton, Washington TABLE 2: ASSESSED VALUE PROPERTY TAX RATES, LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (PAGE 1 of 2) B i $7.0 0 $6.0 S $5.0 a $4.0 f $3.0 $2.0 0 1 $1.0 a $0.0 r Ten Year Assessed Valuation Trends �Fn111 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 DESCRIPTION 1994 1995 1996 1997 ASSESSED VALUE DECEMBER 31: Real Property Value $2,756,919,925 $2,904,421,288 $2,933,904,882 $2,978,575,856 Personal Property Value 673,405,117 675,278,785 612,192,280 647,025,908 TOTAL ASSESSED VALUE 3,430,325,042 3,579,700,073 3,546,097,162 3,625,601,764 CITY AND OVERLAPPING TAX RATES: (a) City of Renton: General Levy $3.48681 $3.55454 $3.60000 $3.60000 City of Renton: Special Levy 0.36282 0.36408 0.34413 0.38781 City of Renton Total $3.84963 $3.91862 $3.94413 $3.98781 King County 2.21546 2.25288 2.20943 2.13173 Port of Seattle 0.30367 0.29482 0.29211 0.28261 Hospital District #1 0.14767 0.15084 0.15698 0.15959 Renton School District #403 3.60091 3.52218 3.71940 3.53615 State of Washington 3.39960 3.41873 3.49966 3.52499 Emergency Medical Services 0.24972 0.24990 0.24987 0.25000 TOTAL PROPERTY TAX RATES $13.76666 $13.80797 $14.07158 $13.87288 PROPERTY TAX LEVIES AND COLLECTIONS: LEVY: (b) Original $13,121,967 $13,971,424 $13,898,818 $14,364,723 Adjusted 12,898,033 13,799,832 13,583,469 14,167,346 COLLECTIONS: Current Collections $12,654,957 $13,327,749 $13,359,611 $13,970,125 Percent of Adjusted Levy 98.12% 96.58% 98.35% 98.61% Delinquent Collections $404,787 $323,487 $347,054 $315,345 TOTAL COLLECTION OF CURRENT & DELINQL $13,059,744 $13,651,236 $13,706,665 $14,285,470 PERCENT OF ADJUSTED LEVY 101.25% 98.92% 100.91% 100.83% OUTSTANDING DELINQUENTTAXES $410,563 $559,159 $435,963 $317,841 PERCENT OF DELINQUENT TAXES TO ADJ LE` 3.18% 4.05% 3.21% 2.24% Source: King County Department of Assessments. (a) Property tax rates are in dollars per $1,000 of taxable property valued at 100%. (b) Restated for error in reporting for 1993 CAFR. 7-4 Statistical Section 2003 Comprehensive Annual Financial Report City of Renton, Washington TABLE 2: ASSESSED VALUE PROPERTY TAX RATES, LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (PAGE 2 of 2) Property Tax Allocation City of Renton 31% StateKing County 27% - 12% Port of Seattle 2% Hospital Schools 1% 27% 1998 1999 2000 2001 2002 2003 $3,099,917,868 $3,543,075,457 $3,830,517,200 $4,317,151,020 $4,819,029,996 $5,235,953,270 725,191,466 715,425,293 714,803,819 745,490,732 774,850,492 747,879,276 3,825,109,334 4,258,500,750 4,545,321,019 5,062,641,752 5,593,880,488 5,983,832,546 $3.55000 $3.42726 $3.39877 $3.27385 $3.26036 $3.18871 0.34608 0.31981 0.28488 0.10078 0.09397 0.08865 $3.89608 $3.74707 $3.68365 $3.37463 $3.35433 $3.27736 1.85109 1.77385 1.68951 1.55218 1.44949 1.34948 0.26466 0.23898 0.21585 0.19029 0.18956 0.25895 0.15934 0.15354 0.11830 0.09873 0.09643 0.09254 3.49222 3.78290 3.65397 3.36669 3.11288 2.98691 3.51138 3.35872 3.30278 3.14502 2.98946 2.89680 n/a 0.29000 0.27299 0.24624 0.25000 0.24143 $13.17477 $13.34506 $12.93705 $11.97378 $11.44215 $11.10347 $14,822,739 $15,843,325 $16,658,569 $17,007,993 $18,676,141 $19,530,405 14,719,382 15,850,628 16,633,388 16,967,683 18,581,814 19,486,858 $14,511,118 $15,595,427 $16,337,790 $16,677,882 $18,285,908 $19,149,258 98.59% 98.39% 98.22% 98.29% 98.41% 98.27% $211,113 $215,939 $238,361 $264,579 $275,697 $281,300 $14,722,231 $15,811,366 $16,576,151 $16,942,461 $18,561,605 $19,430,558 100.02% 99.75% 99.66% 99.85% 99.89% 99.71% $314,989 $354,250 $389,125 $414,348 $434,556 $490,828 2.14% 2.23% 2.34% 2.44% 2.34% 2.52% Statistical Section 7-5 2003 Comprehensive Annual Financial Report City of Renton, Washington TABLE 3: RATIO OF NET GENERAL OBLIGATION DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA - LAST TEN FISCAL YEARS (PAGE 1 of 1) $800 Ten Year Renton Per Capita Net Bonded Debt Trends $ 700 DEBT SERVICE NET $ 630 NET BONDED FISCAL $ 583 $ 599 $ 600 $ 539 FUNDS $ 514 $ 513 $500 $450 DEBT 7 - $461 POPULATION �$398 VALUE $ 400 $3543 AVAILABLE DEBT ASSESSED VALUE PER CAPITA 1994 43,970 $ $ 300 $ 21,160,297 $ 1,373,226 $ 19,787,071 0.58% $ 450 1995 44,890 $ 3,579,700,073 $ 19,065,569 $ 1,220,234 $ 17,845,335 0.50% $ 200 1996 45,170 $ 3,546,097,162 $ 17,382,945 $ 1,426,722 $ 15,956,223 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Source: State of Washington Office of Program Planning and Fiscal Management, King County Department of ASsessments, and City of Renton Finance Department. 7-6 Statistical Section DEBT SERVICE NET RATIO OF NET NET BONDED FISCAL ASSESSED GROSS FUNDS BONDED BONDED DEBT TO DEBT YEAR POPULATION VALUE BONDED DEBT AVAILABLE DEBT ASSESSED VALUE PER CAPITA 1994 43,970 $ 3,430,325,042 $ 21,160,297 $ 1,373,226 $ 19,787,071 0.58% $ 450 1995 44,890 $ 3,579,700,073 $ 19,065,569 $ 1,220,234 $ 17,845,335 0.50% $ 398 1996 45,170 $ 3,546,097,162 $ 17,382,945 $ 1,426,722 $ 15,956,223 0.45% $ 353 1997 45,920 $ 3,625,601,764 $ 30,121,269 $ 1,184,279 $ 28,936,990 0.80% $ 630 1998 46,270 $ 3,825,109,334 $ 28,486,738 $ 1,527,931 $ 26,958,807 0.70% $ 583 1999 47,620 $ 4,258,500,750 $ 26,466,763 $ 2,004,373 $ 24,462,390 0.57% $ 514 2000 48,270 $ 4,545,321,019 $ 24,345,738 $ 2,096,755 $ 22,248,983 0.49% $ 461 2001 51,140 $ 5,062,641,752 $ 29,289,290 $ 1,702,901 $ 27,586,389 0.54% $ 539 2002 53,840 $ 5,593,880,488 $ 33,797,023 $ 1,538,524 $ 32,258,499 0.58% $ 599 2003 54,900 $ 5,983,832,546 $ 30,052,982 $ 1,879,655 $ 28,173,327 0.47% $ 513 Source: State of Washington Office of Program Planning and Fiscal Management, King County Department of ASsessments, and City of Renton Finance Department. 7-6 Statistical Section 2003 Comprehensive Annual Financial Report City of Renton, Washington TABLE 4: SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS LAST TEN FISCAL YEARS (PAGE 1 of 1) 240.0% 210.0% m 180.0% 0 150.0% U m 120.0% cz co 90.0% c 0 60.0% U N 30.0% 0 U 0.0% 1994 Special Assessment Billings and Collections 1995 1996 1997 1998 1999 2000 2001 2002 2003 Source: City of Renton Finance Department Statistical Section 7-7 ASSESSMENTS COLLECTION ASSESSMENTS FISCAL RECEIVABLE ADDITIONAL ASSESSMENT ----- COLLECTION ----- ASA % RECEIVABLE YEAR 1/1 ASSESSMENT BILLING PRINCIPAL INTEREST TOTAL OF BILLING 12/31 1994 $ 5,110,162 $ 326,364 $ 889,261 $ 685,629 $ 327,520 $ 1,013,149 113.93% $ 4,750,897 1995 $ 4,750,897 $ 124,294 $ 588,009 $ 908,724 $ 342,194 $ 1,250,918 212.74% $ 3,966,467 1996 $ 4,212,282 $ 0 $ 820,459 $ 1,002,924 $ 607,356 $ 1,610,280 196.27% $ 3,209,358 1997 $ 3,209,358 $ 0 $ 471,759 $ 605,594 $ 215,457 $ 821,051 174.04% $ 2,603,764 1998 $ 2,603,764 $ 441 $ 392,626 $ 568,553 $ 170,563 $ 739,116 188.25% $ 2,035,652 1999 $ 2,035,652 $ 76,880 $ 471,303 $ 728,920 $ 142,528 $ 871,448 184.90% $ 1,383,612 2000 $ 1,383,612 $ 0 $ 311,375 $ 352,649 $ 82,097 $ 434,746 139.62% $ 1,030,963 2001 $ 1,030,963 $ 0 $ 293,261 $ 333,056 $ 71,088 $ 404,144 137.81% $ 697,908 2002 $ 697,908 $ 0 $ 292,747 $ 312,908 $ 42,689 $ 355,597 121.47% $ 385,000 2003 $ 697,908 $ 0 $ 292,747 $ 312,908 $ 42,689 $ 355,597 121.47% $ 385,000 Source: City of Renton Finance Department Statistical Section 7-7 2003 Comprehensive Annual Financial Report City of Renton, Washington TABLE 5: COMPUTATION OF LEGAL DEBT MARGIN FOR GENERAL AND SPECIAL PURPOSE CAPACITIES AS OF DECEMBER 31, 2003, AND ALL DEBT CAPACITIES - LAST TEN FISCAL YEARS (PAGE 1 of 1) Ten Year Debt Capacity Trends RE M $63.6 i Councilmanic $60 (Non -Voted) ' $54.1 o $48.7 :8 $57.7 n #.73 $53.5 s $426 $42.8 $40 ■ ■ ■ ■�■ $47.8 0 f $31.5 $42.3 $38.7 $39.0 D 0 $31 $30.6 $31.6 $320 Excess Levy a $20 (Voted) r s $0 1 1 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 DESCRIPTION GENERAL CAPACITY SPECIAL PURPOSE CAPACITY PARKS AND UTILITY TOTAL OPEN SPACE PURPOSES CAPACITY COUNCILMANIC EXCESS LEVY ASSESSED VALUE (2003): $5,983,832,546 2.50% of Assessed Value 1.50% of Assessed Value STATUTORY DEBT LIMIT General Obligation Bonds Installment Contracts (a) TOTAL DEBT OUTSTANDING Less Amount Available in Debt Service Funds NET DEBT OUTSTANDING REMAINING DEBT CAPACITY $ N/A 89,757,488 $ 149,595,814 (89,757,488) $ 149,595,814 N/A $ 149,595,814 N/A $ 448,787,441 0 $ 89,757,488 $ 59,838,325 $ 149,595,814 $ 149,595,814 $ 448,787,441 $ 27,248,010 $ 2,665,000 139,972 0 $ 0 $ 0 0 0 $ 29,913,010 139,972 $ 27,387,982 $ 2,665,000 $ 0 $ 0 $ 30,052,982 $ 1,291,724 $ 587,931 $ 0 $ 0 $ 1,879,655 $ 26,096,258 $ 2,077,069 $ 0 $ 0 $ 28,173,327 $ 63,661,230 $ 57,761,256 $ 149,595,814 $ 149,595,814 $ 420,614,114 Source: King County Department of Assessments City of Renton Finance Department (a) Statutory limiit = .75% of 1 % of assessed value. 7-8 Statistical Section 2003 Comprehensive Annual Financial Report City of Renton, Washington TABLE 6: COMPUTATION OF DIRECT AND OVERLAPPING DEBT - DECEMBER 31, 2003 (PAGE 1 of 1) M $140 i $120 0 n S $100 0 f $80 D 0 $60 I I a $40 r s $20 $0 City of Renton Direct and Overlapping Debt Source: King County Department of Finance and King County Department of Assessments. Statistical Section 7-9 PERCENTAGE AMOUNT NET DEBT APPLICABLE APPLICABLE JURISDICTION OUTSTANDING TO RENTON TO RENTON NET DIRECT DEBT: City of Renton $28,173,327 100.00% $28,173,327 OVERLAPPING DEBT: King County $725,169,554 2.70% $19,579,578 Port of Seattle $217,285,000 2.70% $5,866,695 Renton School District #403 $240,460,260 55.04% $132,349,327 Sub -Total $1,182,914,814 13.34% $157,795,600 TOTAL DIRECT AND OVERLAPPING DEBT $1,211,088,141 15.36% $185,968,927 Source: King County Department of Finance and King County Department of Assessments. Statistical Section 7-9 2003 Comprehensive Annual Financial Report City of Renton, Washington TABLE 7: RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION BONDS TO TOTAL GENERAL GOVERNMENT EXPENDITURES - LAST TEN FISCAL YEARS (PAGE 1 of 1) Ten Year Debt Service to Expenditure Ratio Trend 9.00% L6.170 /0 5.82% 3LJ 5.93% 5.36% 5.09% 6.00% 5.03% 5.03%- 5.05% 4.92% 3.00% 0.00% _ t- w 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 FISCAL YEAR (a) PRINCIPAL (a) INTEREST TOTAL DEBT SERVICE (b) TOTAL GENERAL GOVERNMENTAL EXPENDITURES RATIO OF DEBT SERVICE TO EXPENDITURE; 1994 $ 1,614,288 $ 916,353 $ 2,530,641 $ 41,012,597 6.17% 1995 $ 1,720,397 $ 843,051 $ 2,563,448 $ 44,049,803 5.82% 1996 $ 1,631,406 $ 770,117 $ 2,401,523 $ 47,728,156 5.03% 1997 $ 1,619,878 $ 1,093,294 $ 2,713,172 $ 50,587,057 5.36% 1998 $ 1,499,418 $ 1,251,809 $ 2,751,227 $ 54,730,423 5.03% 1999 $ 2,019,976 $ 1,252,437 $ 3,272,413 $ 53,062,269 6.17% 2000 $ 2,121,025 $ 1,160,537 $ 3,281,562 $ 55,336,529 5.93% 2001 $ 1,901,447 $ 981,680 $ 2,883,127 $ 57,093,785 5.05% 2002 $ 1,714,269 $ 1,242,740 $ 2,957,009 $ 60,071,882 4.92% 2003 $ 1,417,042 $ 1,754,502 $ 3,171,544 $ 62,292,312 5.09% (a) Principal and interest are based on total GO Bond debt payments (b) General Government Expenditures include General, Special Revenue, and Debt Service Fund Other Financing Uses and Residual Equity Transfers are not included. Source: City of Renton Finance Department 7-10 Statistical Section 2003 Comprehensive Annual Financial Report City of Renton, Washington TABLE 8: REVENUE BOND COVERAGE FOR WATER AND SEWER, AND GOLF SYSTEM BONDS LAST TEN FISCAL YEARS (PAGE 1 of 1) FISCAL YEAR Water/Sewer Revenue Bond Debt Service Coverage 4.00 NET REVENUE AVAILABLE FOR DEBT SERVICE 3.50 2.55 2.25 2.43 � 2.63 2.61 2.80 2.83 2.80 2.9 °C 3.00 1994 2 18,266,154 $ 11,500,657 $ 6,765,497 $ 2.50 2.25 1.3 1995 $ 20,781,235 $ a� > 2.00 $ 7,594,187 Cj 3,131,174 2.43 1.3 1996 $ 22,842,549 $ 14,750,009 $ 8,092,540 $ 3,173,846 1.50 1.3 1997 $ 22,854,798 $ 14,580,175 $ 8,274,623 $ 3,151,984 2.63 1.3 1998 $ 23,126,374 1.00 14,877,435 $ 8,248,939 $ 3,155,670 2.61 1.3 1999 $ 23,861,159 $ 16,407,442 $ 7,453,717 $ 2,658,909 2.80 1.3 2000 $ 25,541,809 $ 15,653,774 0.50 9,888,035 $ 2,650,713 3.73 1.3 2001 $ 23,508,826 $ 16,051,720 $ 7,457,106 $ 2,638,201 2.83 1.3 2002 $ 26,212,078 $ 17,468,472 $ 8,743,606 0.00 3,121,885 2.80 1.3 2003 $ 29,025,066 $ 21,173,859 $ 7,851,207 $ 2,685,530 2.92 1.3 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 FISCAL YEAR 3.73 OPERATING EXPENSES W/O DEPREC. NET REVENUE AVAILABLE FOR DEBT SERVICE AVERAGE ANNUAL DEBT SERVICE REQUIREMENTS 2.55 2.25 2.43 � 2.63 2.61 2.80 2.83 2.80 2.9 1994 $ 18,266,154 $ 11,500,657 $ 6,765,497 $ 3,004,180 2.25 1.3 1995 $ 20,781,235 $ 13,187,048 $ 7,594,187 $ 3,131,174 2.43 1.3 1996 $ 22,842,549 $ 14,750,009 $ 8,092,540 $ 3,173,846 FISCAL YEAR (a) GROSS REVENUE OPERATING EXPENSES W/O DEPREC. NET REVENUE AVAILABLE FOR DEBT SERVICE AVERAGE ANNUAL DEBT SERVICE REQUIREMENTS (b) COVERAGE COVERAGE IS TO BE AT LEAST WATER AND SEWER REVENUE BONDS: 1994 $ 18,266,154 $ 11,500,657 $ 6,765,497 $ 3,004,180 2.25 1.3 1995 $ 20,781,235 $ 13,187,048 $ 7,594,187 $ 3,131,174 2.43 1.3 1996 $ 22,842,549 $ 14,750,009 $ 8,092,540 $ 3,173,846 2.55 1.3 1997 $ 22,854,798 $ 14,580,175 $ 8,274,623 $ 3,151,984 2.63 1.3 1998 $ 23,126,374 $ 14,877,435 $ 8,248,939 $ 3,155,670 2.61 1.3 1999 $ 23,861,159 $ 16,407,442 $ 7,453,717 $ 2,658,909 2.80 1.3 2000 $ 25,541,809 $ 15,653,774 $ 9,888,035 $ 2,650,713 3.73 1.3 2001 $ 23,508,826 $ 16,051,720 $ 7,457,106 $ 2,638,201 2.83 1.3 2002 $ 26,212,078 $ 17,468,472 $ 8,743,606 $ 3,121,885 2.80 1.3 2003 $ 29,025,066 $ 21,173,859 $ 7,851,207 $ 2,685,530 2.92 1.3 GOLF COURSE REVENUE BONDS (c): 1994 $ 1,319,025 $ 561,028 $ 757,997 $ 419,334 1.81 1.25 1995 $ 1,490,505 $ 767,283 $ 723,222 $ 421,127 1.72 1.25 1996 $ 2,078,745 $ 1,076,030 $ 1,002,715 $ 431,521 2.32 1.25 1997 $ 2,724,692 $ 1,270,849 $ 1,453,843 $ 455,626 3.19 1.25 1998 $ 2,432,929 $ 1,355,669 $ 1,077,260 $ 455,742 2.36 1.25 1999 $ 2,252,217 $ 1,278,489 $ 973,728 $ 439,979 2.21 1.25 2000 $ 2,328,044 $ 1,320,681 $ 1,007,363 $ 440,164 2.29 1.25 2001 $ 2,377,197 $ 1,480,024 $ 897,173 $ 440,223 2.04 1.25 2002 $ 2,279,361 $ 1,415,674 $ 863,687 $ 440,585 1.96 1.25 2003 $ 2,195,431 $ 1,937,057 $ 258,374 $ 440,951 0.59 1.25 (a) Gross revenue includes connection charges, system development charges, and latecomer fees. (b) Bond financing requirements are that the average annual coverage is at least 1.3 times the average annual debt service for Water and Sewer revenue bonds. The Golf System revenue bonds coverage requirement is at least 1.25 times that of respective calendar year's annual debt service. (c) 1999 Golf System Refunding Revenue Bonds were issued to refund the 1994 Golf System Revenue Bonds. Source: City of Renton Finance Department Statistical Section 7-11 2003 Comprehensive Annual Financial Report TABLE 9: CITY OF RENTON RETAIL SALES BY SOURCE LAST FIVE FISCAL YEARS (PAGE 1 of 1) Other Finance Transportati on/Uti I iti es Manufacturing Wholesale General Retailing Construction Services Auto Dealers -1 -1 Changing Sales Tax Composition (1999 vs 2003) 0. 1 City of Renton, Washington -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% Source: City of Renton Finance Department 7-12 Statistical Section 1999 2000 2001 2002 2003 SOURCE AMOUNT % AMOUNT % AMOUNT % AMOUNT % AMOUNT % Auto Dealers $371,149,408 24.66% $409,110,750 24.14% $359,922,566 21.20% $407,773,923 24.30% $425,443,217 24.12% Services 155,010,916 10.30% 184,010,624 10.860/. 184,448,578 10.87% 195,854,385 11.67% 205,379,198 11.65% Construction 169,985,732 11.30% 203,430,733 12.00% 233,809,887 13.77% 216,620,057 12.91% 249,573,851 14.15% General Retailing 492,673,912 32.740/. 568,751,443 33.550/. 598,500,227 35.26% 542,873,439 32.36% 543,020,313 30.79% Wholesale 186,629,695 12.40% 183,977,330 10.850/. 170,882,622 10.07% 166,964,019 9.95% 192,359,603 10.91% Manufacturing 25,115,537 1.67% 25,251,464 1.49% 45,099,847 2.66% 36,139,653 2.15% 40,305,117 2.29% Transportation/Utiliti 71,933,082 4.780/. 82,501,187 4.870/. 56,809,524 3.35% 70,092,150 4.18% 58,084,593 3.29% Finance 22,901,820 1.52% 27,440,587 1.62% 37,543,871 2.21% 30,167,799 1.80% 35,837,775 2.03% Other 9,363,845 0.629/. 10,546,942 0.620/. 10,401,230 0.61% 11,339,423 0.68% 13,635,965 0.77% TOTALS 1 504 763,947 100.00%1 $1,695,021,060 100.00%1 $1,697,418,352 100:00%1 $1,677,824,848 100.00%1 $1,763,639,632 100.00% Source: City of Renton Finance Department 7-12 Statistical Section 2003 Comprehensive Annual Financial Report City of Renton, Washington TABLE 10: 10 LARGEST TAXPAYERS BASED ON ASSESSED VALUATION AND PRINCIPAL EMPLOYERS (PAGE 1 of 1) Source: Assessed Valuation: King county Department of Assessments Assessed Valuation for Largest Taxpayer: King County Department of Assessments Both real and personal property assessment where applicable Number of Employees: Estimated based upon City of Renton Business License Records and individual inquiry where applicable. Statistical Section 7-13 2003 REAL PROPERTY PERCENT OF ASSESSED ASSESSED TAXPAYER TYPE OF BUSINESS VALUATION VALUATION The Boeing Company Aerospace & Computer Services 696,168,701 12.19% PACCAR Heavy Manufacturing 80,571,510 1.40% Puget Sound Energy Electric/Gas Utility 75,681,009 1.33% US West Telephone Utility 49,161,865 0.86% AMB Property Corp Unavailable 44,157,800 0.77% Renton Properties LLC Real Estate Developer 34,619,000 0.61% Avalon Bay Communities Inc Apartment Building 32,169,000 0.56% Pacific NW Group A Unavailable 30,560,800 0.54% Rosche One Interests Office Building 23,554,000 0.41% Fred Meyer Retail - Miscellanious 22,927,117 0.39% Total Assessed Valuation - Largest Taxpayers $ 1,089,570,802 19.06% Total Assessed Valuation - All Others 51.24% 4,621,261,744 80.94% Total Assessed Valuation 48.76% $ 5,710,832,546 100.00% Source: Assessed Valuation: King county Department of Assessments Assessed Valuation for Largest Taxpayer: King County Department of Assessments Both real and personal property assessment where applicable Number of Employees: Estimated based upon City of Renton Business License Records and individual inquiry where applicable. Statistical Section 7-13 2003 FULL TIME EQUIV. PERCENT OF PRINCIPAL EMPLOYERS TYPE OF BUSINESS EMPLOYEES EMPLOYEES The Boeing Company Aerospace & Computer Services 12,568 32.55% Valley Medical Center Medical Services 1,627 4.21% Renton School District Public Education 1,315 3.41% PACCAR Heavy Manufacturing 1,210 3.13% Federal Aviation Administration Federal Government 850 2.20% City of Renton City Government 688 1.78% Wal Mart Retail - Miscellaneous 477 1.24% IKEA Retail - Miscellaneous 382 0.99% Young's Columbia of WA LLC Wholesale 340 0.88% ER Solutions Loan Brokers 330 0.85% Total Number of Employees- - Principal Employers 19,787 51.24% Total Number of Employees - All Other Employers 18,829 48.76% Total Employees Working Within Renton 38,616 100.00% Source: Assessed Valuation: King county Department of Assessments Assessed Valuation for Largest Taxpayer: King County Department of Assessments Both real and personal property assessment where applicable Number of Employees: Estimated based upon City of Renton Business License Records and individual inquiry where applicable. Statistical Section 7-13 2003 Comprehensive Annual Financial Report TABLE 11: CONSTRUCTION PERMITS LAST TEN FISCAL YEARS (PAGE I of 2) City of Renton, Washington New Construction Permit Valuation Trend M $180 i I ❑ OTHER PERMITS 1 $150 i n$120 - — — ❑SINGLE FAMILY s $90 0 f $60 ❑ MULTI FAMILY D 0 I $30 p I COMMERCIAL — a — r $0 S 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Source: Construction permits and values - City of Renton Building Department. Note: For 1993, the breakout as seen above is unavailable, but total permits and valuations are shown. Other permits include plumbing, electrical, mechanical, and sign permits. Starting September 1997, Combo Building Permits are being issued to new residential construction. This combo permit combines permits for building, electrical, mechanical, and plumbing. 7-74 Statistical Section NEW CONSTRUCTION ALL NEW CONSTRUCTION BUILDING PERMITS OTHER PERMITS COMMERCIAL MULTI FAMILY SINGLE FAMILY COM/MULTI/SINGLE PERMITS FISCAL NO. OF DOLLAR NO. OF DOLLAR NO. OF DOLLAR NO. OF DOLLAR YEAR ERMITS VALUE ERMITS VALUE PERMITS VALUE PERMITS VALUE PERMITS VALUATION 1994 26 $ 41,646,451 21 $ 10,755,923 97 $ 13,384,973 531 $ 14,455,415 675 $ 80,242,763 1995 29 $ 43,913,909 16 $ 7,051,996 133 $ 17,464,456 1,100 $ 11,031,008 1,278 $ 79,461,369 1996 26 $ 38,474,779 27 $ 11,207,074 192 $ 27,344,159 1,159 $ 6,684,931 1,404 $ 83,710,943 1997 28 $ 56,368,747 73 $ 40,593,074 249 $ 37,453,977 1,639 $ 14,350,058 1,989 $148,765,857 1998 34 $ 25,191,943 78 $ 36,411,387 280 $ 37,017,381 892 $ 10,260,968 1,284 $108,881,679 1999 34 $ 32,900,792 32 $ 21,972,362 175 $ 25,902,812 601 $ 6,863,519 842 $ 87,639,485 2000 35 $ 28,312,674 36 $ 32,045,355 351 $ 53,657,095 699 $ 10,596,874 1,121 $124,611,998 2001 9 $ 3,717,968 15 $ 16,635,694 376 $ 57,526,127 474 $ 5,301,519 874 $ 83,181,308 2002 46 $ 31,113,577 26 $ 10,004,782 475 $ 78,906,931 339 $ 5,068,547 886 $125,093,837 2003 1 16 $ 14,065,511 1 $ 8,741,532 1 564 $ 118,932,283 1 546 $ 7,084,420 1 1,127 $148,823,745 Source: Construction permits and values - City of Renton Building Department. Note: For 1993, the breakout as seen above is unavailable, but total permits and valuations are shown. Other permits include plumbing, electrical, mechanical, and sign permits. Starting September 1997, Combo Building Permits are being issued to new residential construction. This combo permit combines permits for building, electrical, mechanical, and plumbing. 7-74 Statistical Section 2003 Comprehensive Annual Financial Report $27C $24C $21C $18C $15C $12C $9C $6C $3C $0 1994 TABLE 11: CONSTRUCTION PERMITS LAST TEN FISCAL YEARS (PAGE 2 of 2) Ten Year Total Construction Permit Valuation Trend City of Renton, Washington 237.4 239.2_j t 194.3 179.5 142.5 133.5 121.3 131.9 128.1 ALL ALTERATION TOTAL CONSTRUCTION ALL BUILDING PERMITS OTHER PERMITS PERMITS PERMITS COMMERCIAL MULTI FAMILY SINGLE FAMILY COM/MULTI/SINGLE FISCAL NO. OF DOLLAR NO. OF DOLLAR NO. OF DOLLAR NO. OF 1995 1996 1997 1998 1999 2000 2001 2002 2003 Statistical Section 7-15 ADDITIONAL/ALTERATION CONSTRUCTION ALL ALTERATION TOTAL CONSTRUCTION ALL BUILDING PERMITS OTHER PERMITS PERMITS PERMITS COMMERCIAL MULTI FAMILY SINGLE FAMILY COM/MULTI/SINGLE FISCAL NO. OF DOLLAR NO. OF DOLLAR NO. OF DOLLAR NO. OF DOLLAR YEAR DERMITS VALUE DERMITS VALUE PERMITS VALUE PERMITS VALUE PERMITS VALUATION DERMITS VALUATION 1994 380 $42,431,505 14 $ 449,075 96 $1,697,251 1,990 $17,729,294 2,480 $ 62,307,125 3,155 $142,549,887 1995 336 $23,760,983 12 $ 203,450 99 $1,856,162 1,618 $16,014,437 2,065 $ 41,835,033 3,343 $121,296,402 1996 314 $33,112,674 31 $ 666,046 97 $1,679,484 1,652 $14,336,769 2,094 $ 49,794,973 3,498 $133,505,916 1997 356 $ 64,142,868 11 $ 303,112 96 $1,418,804 1,891 $24,615,480 2,354 $ 90,480,264 4,343 $239,246,120 1998 317 $ 56,323,245 14 $ 3,819,252 101 $1,549,018 1,960 $23,704,320 2,392 $ 85,395,835 3,676 $194,277,514 1999 277 $25,879,237 100 $ 537,329 146 $1,889,443 1,761 $15,932,899 2,284 $ 44,238,909 3,126 $131,878,394 2000 310 $ 77,340,658 58 $ 1,027,001 137 $2,985,809 1,947 $31,477,806 2,452 $112,831,274 3,573 $237,443,272 2001 247 $ 27,005,353 47 $ 1,159,050 115 $1,752,068 1,812 $14,989,741 2,221 $ 44,906,212 3,095 $128,087,520 2002 323 $ 28,886,876 66 $ 2,153,510 152 $3,135,412 2,257 $20,232,427 2,798 $ 54,408,224 3,684 $179,502,062 2003 1 280 $ 44,417,357 1 37 $ 524,639 1 182 $3,766,242 1 2,083 $28,534,741 1 2,582 $ 77,242,977 3,709 $226,066,723 Statistical Section 7-15 2003 Comprehensive Annual Financial Report TABLE 12: DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS (PAGE 1 of 1) City of Renton, Washington 54.9 51.1 -44.9 45.2 _ 7-16 Statistical FISCAL YEAR POPULATION SCHOOL ENROLLMENT Ten Year Population Trends P NUMBER UNEMPLOYED UNEMPLOYMENT RATE 1994 0 60.0 25,490 23,940 P i a t 50.0 X4.0 1995 53.8 45.9 46.3 47.6 48.3 12,173 0 40.0 1,500 5.7% 1996 45,170 n 26,860 25,410 1,450 5.4% 1997 45,920 12,277 28,190 27,150 1,040 3.7% 1998 n 30.0 28,990 28,010 980 3.4% 1999 47,620 12,500 29,537 28,513 1,024 3.5% 2000 48,270 12,443 29,370 28,300 1,070 3.6% 2001 51,140 12,521 28,410 26,800 1,610 T 2002 53,840 12,726 28,620 26,630 1,990 7.0% 2003 54,900 12,908 29,000 26,834 h 7.5% 20.0 U S a 10.0 n d S 0.0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 54.9 51.1 -44.9 45.2 _ 7-16 Statistical FISCAL YEAR POPULATION SCHOOL ENROLLMENT LABOR FORCE NUMBER EMPLOYED NUMBER UNEMPLOYED UNEMPLOYMENT RATE 1994 43,970 11,984 25,490 23,940 1,550 6.1% 1995 44,890 12,173 26,220 24,720 1,500 5.7% 1996 45,170 12,333 26,860 25,410 1,450 5.4% 1997 45,920 12,277 28,190 27,150 1,040 3.7% 1998 46,270 12,532 28,990 28,010 980 FISCAL YEAR POPULATION SCHOOL ENROLLMENT LABOR FORCE NUMBER EMPLOYED NUMBER UNEMPLOYED UNEMPLOYMENT RATE 1994 43,970 11,984 25,490 23,940 1,550 6.1% 1995 44,890 12,173 26,220 24,720 1,500 5.7% 1996 45,170 12,333 26,860 25,410 1,450 5.4% 1997 45,920 12,277 28,190 27,150 1,040 3.7% 1998 46,270 12,532 28,990 28,010 980 3.4% 1999 47,620 12,500 29,537 28,513 1,024 3.5% 2000 48,270 12,443 29,370 28,300 1,070 3.6% 2001 51,140 12,521 28,410 26,800 1,610 5.7% 2002 53,840 12,726 28,620 26,630 1,990 7.0% 2003 54,900 12,908 29,000 26,834 2,166 7.5% Source: Population - State of Washington Office of Program Planning and Fiscal Management School Enrollment - Renton School District 403 Unemployment Rate - Employment security department, Labor Market and Economic Analysis Branch, Labor Market Information Center. Section 2003 Comprehensive Annual Financial Report TABLE 13: MISCELLANEOUS STATISTICS DECEMBER 31, 2003 (PAGE 1 of 1) WASHINGTON STATE DATE OF INCORPORATION FORM OF GOVERNMENT TYPE OF GOVERNMENT LOCATION LAND AREA RANK IN SIZE - STATE OF WASHINGTON RANK IN SIZE - KING COUNTY POPULATION (Official April, 2000) 2003 KC CERT OF ASSESSED VALUATION for the 2003 Tax Roll Year CITY EMPLOYEES (Actual Full Time Equivalents/FTE) ELECTION & VOTER REGISTRATION Number of Precincts Number of Registered Voters (10/25/01) September 6, 1901 Mayor - Council Non -Charter, Code City 11 Miles South of Seattle 17.2 Square Miles 10 5 54,900 FIRE PROTECTION Fire Rating (Washington Survey and Rating Bureau) Number of Commissioned Fire Fighting Personnel Number of Stations (includes Dist #25) Total Fire Loss Number of Life Support Responses All Other Responses Total Number of Responses POLICE PROTECTION Number of Commissioned Police Personnel Number of Calls for Services Total Crimes Reported (Class I, II, III) Traffic Accidents Investigated All Other Traffic Violations PARKS & RECREATION Total Acreage Number of Parks and Playgrounds $5,960,091,270 696.3 66 25,334 3 105 5 2,241,790 6,232 2,350 8,582 City of Renton, Washington TRAFFIC SIGNALS Number of Signalized Intersections STREETS Miles of Streets and alleys UTILITY SERVICES Water: Total Customers Total Gallons of Water Produced Number of Fire Hydrants Miles of Water Main Sanitary Sewer: Total Customers Storm Drainage: Number of Accounts Miles of Storm Sewers LICENSE & PERMITS Business Licenses Amusement Devices Special Permits (Peddler) Animal Licenses (Dog and Cat) 88 AIRPORT 53,369 Area in acres 8,952 Feet of Asphaltic Concrete Runway 1,796 Total Operations 12,666 LIBRARY Libraries (Main and Highlands Branch) 1,180 Total Registered Borrowers 26 Total Circulation i[IR 213.67 15,405 2,767,052,000 3,162 291.0 Statistical Section 7-17 13,578 13,754 199.4 4,383.0 141.0 9.0 1,093.0 167.21 5,379 113,260 2 39,902 499,792 2003 Comprehensive Annual Financial Report City of Renton, Washington This page is intentionally left blank. 7-18 Statistical Section