HomeMy WebLinkAbout2006 CAFRi
CITY OF RENTON
2006
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For Year Ended December 31, 2006
Michael E. Bailey, CPA, Administrator
Linda M. Parks, CPA, CGFM, Fiscal Services Director
Finance & Information Services
City of Renton
1055 South Grady Way
Renton, Washington 98057
(425) 430-6858
website: www.rentonwa.gov
ii
ACKNOWLEDGEMENTS
Prepared by the Finance Division
of the Finance & Information Services Department
Finance & IS Administrator
Michael E. Bailey, CPA
Fiscal Services Director
Linda M. Parks, CPA, CGFM
Accounting Staff
Linda Dixon, Finance Analyst III
David Lemenager, Accounting Assistant III
Jill Masunaga, Finance Analyst III
Bang Parkinson, Finance Analyst Supervisor
Tracy Schuld, Accounting Supervisor
Vidya Vinod, Finance Analyst II
Nancy Violante, Finance Analyst III
Cindy Zinck, Finance Analyst Supervisor
Administrative Secretary II
DeAnna Fricke
Print & Mail Coordinator
Karl Hurst
Form/Graphic Technician
Beth Haglund
TABLE OF CONTENTS
DECEMBER 31, 2006
ITEM PAGE
iii
INTRODUCTORY SECTION
Letter of Transmittal.....................................................................................................................................1-1
2005 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:
Statement of Net Assets.........................................................................................................................4-1
Statement of Activities...........................................................................................................................4-2
Fund Statements
Government Fund Financial Statements:
Balance Sheet..................................................................................................................................4-4
Reconciliation of Balance Sheet to the Statement of Net Assets ....................................................4-8
Statement of Revenues, Expenditures and Changes in Fund Balances...........................................4-9
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Government Funds to the Statement of Activities.......................................4-11
Proprietary Fund Financial Statements:
Statement of Net Assets.................................................................................................................4-12
Statement of Revenues, Expenses, and Changes in Fund Balances..............................................4-14
Statement of Cash Flows...............................................................................................................4-15
Fiduciary Fund Statements:
Statement of Fiduciary Net Assets................................................................................................4-17
Statement of Changes in Fiduciary Net Assets .............................................................................4-18
Notes to Financial Statements:
Note 1: Significant Accounting Policies .........................................................................................4-19
Note 2: Compliance and Accountability .........................................................................................4-29
Note 3: Deposits and Investments...................................................................................................4-31
Note 4: Property Taxes....................................................................................................................4-34
Note 5: Capital Assets and Depreciation.........................................................................................4-35
Note 6: Pensions..............................................................................................................................4-38
Note 7: Other Post Employment Benefits .......................................................................................4-45
Note 8: Contingencies.....................................................................................................................4-46
Note 9: Risk Management...............................................................................................................4-46
Note 10: Interfund Transactions........................................................................................................4-49
Note 11: Net Assets...........................................................................................................................4-50
Note 12: Prior Year Restatements.....................................................................................................4-51
Note 13: Short Term Debt.................................................................................................................4-51
Note 14: Long Term Debt .................................................................................................................4-51
Note 15: Deferred Charges in Proprietary Funds..............................................................................4-54
Note 16: Segment Information..........................................................................................................4-55
Note 17: Joint Ventures.....................................................................................................................4-55
Note 18: Subsequent Events..............................................................................................................4-56
Required Supplemental Information Other than MD&A
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget to Actual
General Fund..........................................................................................................................................5-1
Parks Fund .............................................................................................................................................5-2
Actuarial Valuation of Firefighters’ Pension Fund................................................................................5-3
TABLE OF CONTENTS
DECEMBER 31, 2006
ITEM PAGE
iv
Combining Statements
Non-Major Fund Descriptions...............................................................................................................6-1
Combining Balance Sheet......................................................................................................................6-5
Combining Statement of Revenues, Expenditures and Changes in Fund Balances.............................6-12
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to 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
Statement of Changes in Assets and Liabilities Agency Fund – Special Deposit ...............................6-50
Statistical Section
Statistical Section Description...............................................................................................................7-1
Financial Trends:
Table 1: Net Assets by Component ....................................................................................................7-3
Table 2: Changes in Net Assets..........................................................................................................7-4
Table 3: Fund Balance of Government Funds....................................................................................7-6
Table 4: Changes in Fund Balances of Government Funds................................................................7-8
Table 5: General Government Tax Revenue by Source ...................................................................7-10
Revenue Capacity:
Table 6: Principal Property Tax Payers............................................................................................7-11
Table 7: Assessed Value Taxable Property ......................................................................................7-12
Table 8: Property Tax Rates Direct and Overlapping Governments................................................7-14
Table 9: Property Tax Levies and Collections..................................................................................7-16
Table 10: Sales Tax Collections by Sector.........................................................................................7-18
Debt Capacity:
Table 11: Ratios of Outstanding Debt by Type..................................................................................7-20
Table 12: Legal Debt Margin Information..........................................................................................7-22
Table 13: Ratios of General Bonded Debt Outstanding .....................................................................7-24
Table 14: Direct and Overlapping Governmental Activities Debt .....................................................7-25
Table 15: Revenue Bond Coverage for Water and Sewer and Golf System Bonds...........................7-26
Demographic and Economic Information:
Table 16: Demographic and Economic Statistics...............................................................................7-27
Table 17: Principal Employers ...........................................................................................................7-28
Operating Information:
Table 18: Full Time Equivalent City Government Employees by Function ......................................7-30
Table 19: Operating Indicators by Function.......................................................................................7-32
Table 20: Capital Assets Statistics by Function..................................................................................7-34
June 1, 2007
Honorable Kathy Keolker, Mayor
Members of the Renton City Council
Residents of Renton
City of Renton, Washington
RE: THE 2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Dear Mayor Keolker, City Councilmembers, and Residents of Renton:
We are pleased to present the City’s Comprehensive Annual Financial Report for the year ended
December 31, 2006. We publish this financial statement in conformity with generally accepted
accounting principles (GAAP). It has been audited in accordance with generally accepted
auditing standards by the Washington State Auditor’s Office.
The report includes our own representations concerning the finances of the City of Renton.
Consequently, we assume 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, we have established a comprehensive internal control framework that is
designed both to protect the City of Renton’s assets from loss, theft or misuse and to maintain
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 that this financial report is
complete and reliable in all material aspects.
These financial statements have been audited by the Washington State Auditor’s Office. The
goal of this independent audit was to provide reasonable assurance that the City’s financial
statements for the fiscal year ended December 31, 2006, are free of material misstatements. The
independent audit involved examining, on a test basis, evidence supporting the amounts and
disclosures in our financial statements; assessing the accounting principles used and significant
estimates made by management; and evaluating the overall financial statement presentation.
Based upon the audit, the independent auditor concluded 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, 2006, are fairly presented in conformity with GAAP. The State Auditor’s
report is included as the first component of the financial section of this report.
2006 Comprehensive Annual Financial Report City of Renton, Washington
1-2 Introduction
The independent audit of the City of Renton’s financial statements is part of a broader, 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 City’s internal controls and
compliance to legal requirements with special emphasis on internal controls and legal
requirements involving the administration of federal grant programs.
The City’s Single Audit Report is issued separately and is available upon request or directly from
the Washington State Auditor. Another State mandate requires the Washington State Auditor’s
Office to 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 upon request and from the Washington State Auditor. 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 1,160 acres of parks that includes 26 active parks. As
presented by the Washington State Office of Financial Management, our 2006 population was
58,360.
The City of Renton has a strong mayor form of government with an appointed Chief
Administrative Officer. The Mayor is independently elected to a four-year term. The Mayor’s
job is to manage 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 on a
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.
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, capital, and long-term debt costs. The City has its own water rights and
does not purchase water from outside sources. The City’s sewage is treated by King County, but
2006 Comprehensive Annual Financial Report City of Renton, Washington
Introduction 1-3
the City is responsible for transferring and maintaining the system to King County. The City
bills Renton residents a monthly fee for the cost of sewer treatment performed by King County.
The City 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 short-term operational costs, an active capital maintenance
program, and annual debt service payments for the construction of the clubhouse and the driving
range.
One operation the City has, which is somewhat unusual for cities our size, is its airport. The
Renton Municipal Airport is used by small private plane operators, a floatplane tourist company,
and Boeing initiates its maiden 737 flights from this airport. The operational costs of the airport
are paid from rental fees. Much of the major capital projects are paid by fees or with Federal
Aviation Administration grants.
The City of Renton complies 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 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 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 budget. 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.
Economic Condition and Outlook
In Mayor Kathy Keolker’s 2007 State of the City’s address she highlighted:
• “Renton’s taxable retail sales increased by almost 10 percent in 2006 and is
expected to increase another 7.5 percent in 2007.”
2006 Comprehensive Annual Financial Report City of Renton, Washington
1-4 Introduction
• “Over the seven year period from 1999 to 2005, the City’s population growth
averaged 2.8 per year.”
• “The number of permits issued for new houses in Renton between 1999 and 2005
was 55 percent greater than in the previous seven-year period.”
• “Rapid growth at Boeing is expected to lift total Renton employment. Job gains
are expected to continue in 2007 and 2008. Puget Sound should see nearly 15,000
new aerospace jobs, an 8.5 percent annual growth. For the second consecutive
year, the 737 program achieved a record with net orders of 729 airplanes. The
previous record for the 737 program was 569 in 2005. Boeing’s delivery rate is
expected to be a plane a day in 2007-2008.”
• “Outside of Boeing, employment is expected to grow about 2.5 percent per year
in 2007 and 2008.”
• “For the next few years, the rate of increase in Renton jobs is expected to be 1.5
times that of King County. Home sales are also expected to increase.”
UPDATE FROM BUDGET DOCUMENT
Outlook
The 2007 Budget totals $210 million; 58.6 million represents the capital budgets. This is 62%
more than last year. Projected in the 2007 budget is an ending fund balance of approximately $1
million more than the policy target, which positions the City well for 2008. The 2007 budget
anticipates sales tax revenues to grow by 5% over 2006 actual receipts. The growth was nearly
11% between 2005 and 2006. The City adopted a modest increase in the utility rates to pay for
maintenance and capital improvements. This will maintain the quality of services provided. The
budget includes, funded by prior year budget savings, $400,000 to fund one-time investments in
City programs such as replacement of fire fighting equipment and purchase of vehicles to
support additional staff.
Approximately 11% of the operating budget increase in 2007 was a result of mandatory cost
increases. The most significant increase was the change in the retirement system contribution
rates established by the State of Washington. Contributions to the retirement system will
increase an average of 44.5% or $635,000 for the general government contributions alone. It is
anticipated to increase another 44% in 2008, resulting in an increase of just over $1.8 million
over the two-year period. The emergency communications system by Valley Communications
increased $176,627. The overtime and retirement system rate increases in Police and Fire were
$142,560 and $62,000 respectfully. The 2007 budget also included additional staff resources of
19 employees. Six positions were added to public safety, 13 in other areas of the City.
The budget also includes nearly $22 million increase for capital improvement projects. Major
highlights are:
• Transportation – large projects such as the SW 27th Street Connection to Strander Blvd.,
South Lake Washington roadway improvements, widening Duval Ave NE, and multi-
mode transit improvements of Hardie Ave SW.
2006 Comprehensive Annual Financial Report City of Renton, Washington
Introduction 1-5
• Airport – precision approach to make our airport safer in all weather conditions, one
building demolition, completing the new north and south entrances to the airfield.
• General Government – the Sam Chastian Waterfront Trail and the Springbrook Creek
Wetland Mitigation Bank Trail, CIP projects for major parks and facilities maintenance,
and technology improvements.
• Utilities – the new Hazen 565 Zone reservoir and treatment facility, intertie connections,
water main rehabilitaion and replacements, emergency power facilities, lift station
replacement and rehabilitation, water treatment facility in Kennydale, Springbrook Creek
improvements, and draninage and emergency storm projects.
Source: 2007 Adopted Budget Message – Moving Renton Forward
Letter by: Mayor Kathy Keolker
OTHER INFORMATION
Cash Management
The City has adopted an Investment Policy that states that the primary objectives of investment
management, in priority order, are safety, liquidity, and return on investment. The Investment
Policy reflects provisions in state statute and authorizes investments in obligations with: the US
Government or its agencies; banker’s acceptances; certificates of deposit issued by public
depositories in the State of Washington; 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, which are invested primarily in US Treasury
strips. In 2006, the independent actuarial study estimates a (negative) net pension obligation of
($773,166), and is included, as an asset in the City of Renton’s Government-wide Financial
Statements.
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 operates with
an Oversight Board comprised of City representatives. This Board meets monthly. In most
cases, the City of Renton has a variety of insurance deductibles that range from $25,000 to a
maximum of $250,000. The City maintains a self-insurance program for health and dental
coverage for City employees and dependents. The City purchases excess medical coverage from
Berkley Risk for cases that exceed $350,000. The City also purchases life and disability
insurance from various healthcare insurance providers.
Awards and Acknowledgements
The City has a long history of superior achievements in the preparation of its Comprehensive
Annual Financial Reports through the peer review program conducted by the Government
Finance Officers Association. The dedicated staff of the Finance Division work hard each day to
ensure that the City’s financial records always displays information in conformance with legal
2006 Comprehensive Annual Financial Report City of Renton, Washington
1-6 Introduction
parameters. All members of the division are to be commended for their consistent dedication to
excellence in local government finance. In particular, Bang Parkinson and Nancy Violante,
produced a significant portion of this year’s annual financial report. Linda Dixon, Jill Masunaga,
and Vidya Vinod contributed significantly by preparing cash flow statements, the statistical
section, and other elements of this report. Other contributors included: Kristi Brovold, David
Lemenager, Tracy Schuld, and Cindy Zinck. The actual production could not be accomplished
without the technical expertise of DeAnna Fricke, Karl Hurst, and Beth Haglund. We are
pleased with the comprehensive content and quality of this financial report knowing that the
citizens of Renton can rely on this report as the definitive assessment of all City financial
operations.
Sincerely,
Michael E. Bailey, CPA Linda M. Parks, CPA
Finance & Information Services Administrator Fiscal Services Director
Introduction 1-7
H:\FINANCE\CAFRDOC\CAFR 2006 Book\02_introductory section\H:\FINANCE\CAFRDOC\CAFR 2006 Book\02_introductory section\
City of Renton Corporate Organization Structure
RENTON CITIZENS
CITY COUNCIL
Randy Corman, President
Toni Nelson, Terri Briere
Dan Clawson, Denis W. Law
Marcie Palmer, Don Persson
425-430-6501
MAYOR
Kathy Keolker
425-430-6500
CHIEF ADMINISTRATIVE OFFICER
Jay Covington
425-430-6500
COMMUNICATIONS
Preeti Shridhar, Director
425-430-6500
COMMUNITY SERVICES
Terry Higashiyama,
Administrator
425-430-6600
Facilities
Peter Renner, Director
Parks
Leslie Betlach, Director
Recreation
Jerry Rerecich, Director
Human Services
Karen Bergsvik, Manager
Library
Bette Anderson, Director
Renton History Museum
Elizabeth Stewart, Supervisor
Community Relations/
Special Events
PLANNING/BUILDING/
PUBLIC WORKS
Gregg Zimmerman,
Administrator
425-430-7394
Development Services
Neil Watts, Director
Maintenance Services
Michael Stenhouse, Director
Transportation Systems
Peter Hahn, Deputy
P/B/PW Administrator
Utility Systems
Lys Hornsby, Director
ECONOMIC DEVELOPMENT
NEIGHBORHOODS, AND
STRATEGIC PLANNING
Alex Pietsch, Administrator
425-430-6580
Economic Development
Suzanne Dale Estey,
Director
Neighborhoods
Strategic Planning
ADMINISTRATIVE, JUDICIAL
AND LEGAL SERVICES
Marty Wine, Assistant CAO
425-430-6500
Mayor's Office
City Clerk/Cable Manager
Bonnie Walton,
City Clerk
Court Services
Joe McGuire, Director
Hearing Examiner
Fred Kaufman,
Hearing Examiner
City Attorney
Warren Barber Fontes, P.S.
POLICE
Kevin Milosevich, Chief
425-430-7503
Operations/Support
Tim Troxel, Deputy Chief
Patrol Operations
Patrol Services
Investigations
Administrative
Services
Staff Services
Auxiliary Services
FIRE
I. David Daniels, Chief
425-430-7501
Operations
Charles Duffy,
Deputy Fire Chief
Emergency Response
Administration/
Support Services
Larry Rude,
Deputy Fire Chief
Prevention Bureau
Training
Disaster
Management
HUMAN RESOURCES
AND RISK MANAGEMENT
Michael Webby, Administrator
425-430-7650
Human Resources
Civil Service Commission
Risk Management
FINANCE AND
INFORMATION SERVICES
Michael Bailey, Administrator
425-430-6858
Finance
Linda Parks,
Fiscal Services Director
Information Services
Print and Mail
Services
MUNICIPAL COURT
JUDGE
Terry Jurado
425-430-6550
2006 Comprehensive Annual Financial Report City of Renton, Washington
Management’s Discussion and Analysis 3-1
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, 2006. 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 represent the complete 2006
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 provides an overview of the City’s financial
records. The data in this financial report also identifies any material deviations from the financial
plan and the adopted annual budget. Finally, the intent of the MD&A and other financial
information is to isolate and identify individual fund issues or concerns.
FINANCIAL INFORMATION
Since 2003, the City of Renton prepared its financial records in accordance to what is known as
Government Accounting Standards Board Statement 34 (GASB 34) with a phase in of the
infrastructure component in 2004.
The City’s general 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 Office of the Auditor reviews the City’s
internal controls, and the City receives and takes action on all the recommendations made.
2006 Comprehensive Annual Financial Report City of Renton, Washington
3-2 Management’s Discussion and Analysis
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, 2006, exceeded liabilities by over $486 million.
• As of December 31, 2006, the City’s Governmental Activities reported net assets of $282
million. Of this total, $26 million 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 $213 million of the $282 million in Governmental
Activities net assets.
• The business type activities have total net assets of $204 million. Eighty-eight (88%)
percent of this total, $180 million, represents the City’s investments in capital assets. An
unrestricted balance of $20 million remains and 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 outstanding long-term debt as of December 31, 2006, was $96 million. Of
this amount, $41.4 million are revenue bonds and PWTF loans dedicated to the water works
projects. Another $1.4 million is for outstanding bonds for Senior Housing. These bonds
have a special taxing authority. The Golf Course has $3.09 million outstanding in debt
service. Employee leave balances total $4.6 million. The balance of $45.5 million of our
debt is dedicated for general governmental purposes, including the purchase of City Hall, the
construction of the downtown parking garage and a replacement of a fire station (our share
of a regional E-911), Communications Center, and other small projects, including
municipal-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 2006. 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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
Management’s Discussion and Analysis 3-3
Figure 1
REQUIRED COMPONENTS OF THE
ANNUAL FINANCIAL REPORT
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, provides a ten-year view of the City’s
Revenue, Expenditures, Debt Obligations, and Debt Capacity, the City’s largest taxpayers, and
those entities with the largest employment within the City of Renton. This section provides a long-
term perspective on the City’s economy.
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, golf course, and airport.
2006 Comprehensive Annual Financial Report City of Renton, Washington
3-4 Management’s Discussion and Analysis
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 combines and consolidates
governmental funds’ current financial resources (short term available resources) with capital assets
and long-term obligations, which is primarily 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
includes changes to the property tax base, general economic conditions as demonstrated through
business licenses fees or sales tax revenue, and the condition of the City’s infrastructure (roads,
drainage systems, bridges, 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 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.
Fund Financial Statements
The City uses funds to ensure and demonstrate fiscal integrity and compliance with finance related
legal requirements with a focus 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.
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 of that individual governmental or
enterprise funds are at least ten percent (10%) 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 government
fund or enterprise funds are at least five percent (5%) of the corresponding total for all
governmental and enterprise funds combined; or
• Any other governmental or enterprise fund that the government’s officials believe is
particularly 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
2006 Comprehensive Annual Financial Report City of Renton, Washington
Management’s Discussion and Analysis 3-5
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, Parks, and Municipal Facilities CIP Funds (new major fund in 2006). 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
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 (water, wastewater, and
stormwater) and Solid Waste. All other activities are combined in Other Enterprise Funds.
Governmental Activities Internal Service Funds are reported separately in this section.
2006 Comprehensive Annual Financial Report City of Renton, Washington
3-6 Management’s Discussion and Analysis
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, only slight differences
will be noticed. 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.
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
Statement of Net Assets
Changes in Net Assets may serve as a useful indicator of a government’s financial position. The
overall financial position has improved for the City of Renton over the prior year. Changes in Net
Assets from 2005 to 2006 shows an increase in total net assets of $27.9 million.
2006 Comprehensive Annual Financial Report City of Renton, Washington
Management’s Discussion and Analysis 3-7
Table 1 is a condensed version of the Government-wide Statement of Net Assets.
Table 1
NET ASSETS
Total Total
Governmental Governmental Business-type Business-type Primary Primary
Activities Activities Activities Activities Government Government
2005 2006 2005 2006 2005 2006
Current and other assets $69,083,752 $89,914,383 $27,021,623 $38,029,290 $96,105,375 $127,943,673
Capital assets (net of
accumulated depreciation) 234,312,957 253,366,212 219,207,529 213,959,532 453,520,486 467,325,744
TOTAL ASSETS $303,396,709 $343,280,595 $246,229,152 $251,988,822 $549,625,861 $595,269,417
Long term liabilities $34,448,776 $51,093,508 $47,794,739 $44,994,968 $82,243,515 $96,088,476
Other liabilities 7,799,762 10,620,578 1,509,414 2,564,530 9,309,176 13,185,108
TOTAL LIABILITIES $42,248,538 $61,714,086 $49,304,153 $47,559,498 $91,552,691 $109,273,584
NET ASSETS
Invested in capital assets,
net of related debt $203,297,293 $209,964,556 $171,827,746 $181,515,939 $375,125,039 $391,480,495
Restricted 28,578,305 42,261,663 3,555,690 3,555,690 32,133,995 45,817,353
Unrestricted 29,272,573 29,340,290 21,541,563 19,357,695 50,814,136 48,697,985
TOTAL NET ASSETS $261,148,171 $281,566,509 $196,924,999 $204,429,324 $458,073,170 $485,995,833
The majority of the City’s net assets (81%) are investments in capital assets (e.g., 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.
Investments in capital assets net of related debt increased from 2005 to 2006 by $16.4 million. In
2006, the City issued $17,980,000 Limited Tax obligation bonds. The proceeds of the bonds were
used to finance the construction of South Lake Washington infrastructure improvements.
Chart 1
CATEGORIES OF NET ASSETS
$0
$75,000,000
$150,000,000
$225,000,000
$300,000,000
$375,000,000
$450,000,000
$525,000,000
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Unrestricted
Restricted
Invested in capital assets
2006 Comprehensive Annual Financial Report City of Renton, Washington
3-8 Management’s Discussion and Analysis
Restricted assets, representing resources that are subject to external restrictions on how they may be
used, equate to nine percent (9%) of total net assets, up from seven percent (7%) in 2005. The
remaining balance (unrestricted net assets) of $48.7 million may be used to meet the City’s ongoing
obligations. Chart 1 provides a graphical comparison of the three categories of net assets for 2005
and 2006.
As of December 31, 2006, 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 changes in accounting principles)
increased in 2006 by $27.9 million. Governmental activities generated seventy percent (73%) of
this total or $20.4 million, while business-type activities generated $7.5 million of this total.
Chart 2 below 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. Comparable data is available and provided in the 2006 Annual Report.
Chart 2
2006 TOTAL REVENUES BY SOURCE
Property Taxes
15%
Sales Taxes
13%
Excise Taxes
5%
Interest/Investment
earnings
3%
Operating Grants &
Contributions
3%
Capital
Grants/Contribution
8%
Charges for Services
45%
Business
Taxes
7%
Miscellaneous
1%
2006 Comprehensive Annual Financial Report City of Renton, Washington
Management’s Discussion and Analysis 3-9
Table 2
CHANGE OF NET ASSETS
Governmental
Activities 2005
Governmental
Activities 2006
Business-Type
Activities 2005
Business-Type
Activities 2006
Total Primary
Government
2005
Total Primary
Government
2006
REVENUES:
Program revenues:
Charges for services $27,101,167 $31,340,523 $40,029,830 $40,056,079 $67,130,997 $71,396,602
Operating grants & contributions 4,979,601 4,596,836 196,974 77,688 5,176,575 4,674,524
Capital grants & contributions 1,227,503 5,909,870 5,101,699 6,317,203 6,329,202 12,227,073
GENERAL REVENUES:
Property taxes 21,523,818 23,600,131 21,523,818 23,600,131
Sales taxes 18,910,823 20,869,595 18,910,823 20,869,595
Business taxes 10,643,068 11,219,303 10,643,068 11,219,303
Other taxes 6,938,265 7,718,945 6,938,265 7,718,945
Penalties and interest 49 3,799 49 3,799
Interest and investment earnings 1,449,001 3,251,975 458,797 881,486 1,907,798 4,133,461
Miscellaneous 1,958,217 689,243 639,646 282,808 2,597,863 972,051
TOTAL REVENUES $94,731,512 $109,200,220 $46,426,946 $47,615,264 $141,158,458 $156,815,484
PROGRAM EXPENSES
GOVERNMENTAL ACTIVITIES:
General government services $21,137,856 $19,977,086 $21,137,856 $19,977,086
Judicial 1,380,816 1,434,134 1,380,816 1,434,134
Security of persons and property 29,496,791 30,749,762 29,496,791 30,749,762
Physical environment 2,208,340 2,618,832 2,208,340 2,618,832
Transportation 4,183,880 15,798,138 4,183,880 15,798,138
Economic environment 5,899,796 6,372,118 5,899,796 6,372,118
Mental and physical health 300,171 295,072 300,171 295,072
Culture and recreation 9,744,692 9,695,924 9,744,692 9,695,924
Interest on long-term debt 1,710,346 1,772,370 1,710,346 1,772,370
Business-type activities
Water $25,884,227 $27,220,132 25,884,227 27,220,132
Airport 1,226,810 1,196,363 1,226,810 1,196,363
Solid waste 9,327,525 9,706,016 9,327,525 9,706,016
Golf 2,132,077 2,056,874 2,132,077 2,056,874
TOTAL EXPENSES $76,062,688 $88,713,436 $38,570,639 $40,179,385 $114,633,327 $128,892,821
Increase in net assets before transfers $18,668,824 $20,486,784 $7,856,307 $7,435,879 $26,525,131 $27,922,663
Transfers (9,300) (68,446) $9,300 $68,446 0 0
Increase in net assets 18,659,524 20,418,338 7,865,607 7,504,325 26,525,131 27,922,663
Net Assets - beginning 242,488,646 261,148,171 189,059,392 196,924,999 431,548,038 458,073,170
Net Assets -ending $261,148,171 $281,566,509 $196,924,999 $204,429,324 $458,073,170 $485,995,833
Seventy percent (70%) of the City of Renton’s total revenue activities are for general governmental
activities such as providing police, fire, parks, libraries, recreational, building safety, and planning
services.
The largest business type activities
include water, sewer, surface water, solid
waste, and golf activities.
Governmental Activities Analysis
Governmental activities cost a total of
$89 million in 2006, up $12.6 million
from 2005. Of this amount, $42 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
Chart 3
2006 COMPARISON OF TOTAL GOVERNMENTAL vs
BUSINESS TYPE EXPENSES
Governmental
Activities
69%
Business Type
Activities
31%
2006 Comprehensive Annual Financial Report City of Renton, Washington
3-10 Management’s Discussion and Analysis
and contribution. The net expense (total expenses less program revenues) of $47 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.)
Chart 4
GOVERNMENTAL ACTIVITIES
PROGRAM REVENUES AND EXPENSES
2005 vs 2006
-$1,500,000
$3,000,000
$7,500,000
$12,000,000
$16,500,000
$21,000,000
$25,500,000
$30,000,000
2 0 0 5 G e n e r a l G o v t
2 0 0 6 G e n e r a l G o v t
2 0 0 5 J u d i c i a l
2 0 0 6 J u d i c i a l
2 0 0 5 S e c u r i t y o f P e r s o n s a n d P r o p e r t y
2 0 0 6 S e c u r i t y o f P e r s o n s a n d P r o p e r t y
2 0 0 5 P h y s i c a l E n v i r o n m e n t
2 0 0 6 P h y s i c a l E n v i r o n m e n t
2 0 0 5 T r a n s p o r t a t i o n
2 0 0 6 T r a n s p o r t a t i o n
2 0 0 5 E c o n o m i c E n v i r o n m e n t
2 0 0 6 E c o n o m i c E n v i r o n m e n t
2 0 0 5 M e n t a l a n d P h y s i c a l H e a l t h
2 0 0 6 M e n t a l a n d P h y s i c a l H e a l t h
2 0 0 5 C u l t u r e a n d R e c r e a t i o n
2 0 0 6 C u l t u r e a n d R e c r e a t i o n
2 0 0 5 I n t e r e s t o n D e b t
2 0 0 6 I n t e r e s t o n D e b t
Expenses
Revenues
Chart 5 depicts the sources of revenues that fund governmental activities. Approximately fifty-
seven percent (57%) is from various taxes. Charges for services, grants, and interest earnings
generate forty-two percent (42%) of total revenue for general governmental activities.
2006 Comprehensive Annual Financial Report City of Renton, Washington
Management’s Discussion and Analysis 3-11
Chart 5
GOVERNMENTAL ACTIVITIES
REVENUES BY SOURCE
Property Taxes
21%
Capital Grants
5%Operating Grants
4%
Charges for Services
30%
Excise Taxes
7%Interest Earnings
3%
Miscellaneous
1%
Business Taxes
10%
Retail Sales Ta
19%
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.)
Chart 6
BUSINESS TYPE ACTIVITIES
PROGRAM REVENUES AND EXPENSES
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2005
Waterworks
2006
Waterworks
2005 Airport 2006 Airport 2005 Solid
Waste
2006 Solid
Waste
2005 Golf
Course
2006 Golf
Course
Expenses
Revenues
The Waterworks Utility had a positive net change of $6.8 million at the end of 2006 compared to
$7.4 million in 2005. The City generated $34 million in various fees for services and other sources
from waterworks activities above the $27.2 million in expenses.
2006 Comprehensive Annual Financial Report City of Renton, Washington
3-12 Management’s Discussion and Analysis
The Airport’s total expenses were $1.2 million. Grant revenues for 2006 were $282,130 with total
revenues of $1.2 million.
The Solid Waste Utility’s revenues were $9.9 million generated from fees for services and $76,293
in grants. The total expenses were $9.7 million.
The Golf Course generated a total of $2.3 million in green fees, driving range charges, and other
user fees. The total expenses for the Golf Course were $2.1 million. Thus, the Golf Course
generated a net asset change of $291,908 for the year.
Business-type activities are supported
primarily from charges for services. In the
City of Renton, $40 million was generated
from charges for services in the business-type
activities. These comprise eighty-four
percent (84%) of the total financial support
for these activities. Grant revenues increased
20.6% or $1.1 million from 2005 to 2006.
Chart 7
BUSINESS TYPE ACTIVITIES
REVENUES BY SOURCES
Charges for
Services
84%
Grants
13%
Interest &
Miscellaneous
3%
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
Governmental Funds Analysis
The focus of the City’s governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City’s
financing requirements. In particular, unreserved fund balance may serve as a useful measure of a
government’s net resources available for spending at the end of the fiscal year.
As of the end of the fiscal year, the City’s governmental funds reported combined ending fund
balances of $60 million, an increase of $17 million in comparison to last year. Approximately 8%
constitutes unreserved, undesignated fund balance, which is available for spending at the
government’s discretion. The remainder of the fund balance is reserved or designated to indicate
that it is not available for new spending because it has already been committed for operating
reserves.
The General Fund is the chief operating fund of the City. At the end of the current year, unreserved,
undesignated fund balance of the general fund was $4.9 million, while total fund balance reached
$10.7 million. The fund balance total increased 1.5 million during the fiscal year. Transfers to other
funds decreased by $2.6 million in 2007, significantly contributing to this increase.
The Parks Fund at year-end had an unreserved, designated fund balance of $1,285,989. The overall
fund balance increased $448,175 over the prior year. The Parks Fund received $1.3 million more in
2006 Comprehensive Annual Financial Report City of Renton, Washington
Management’s Discussion and Analysis 3-13
property taxes to help offset the increase in expenditures in the fund for culture and recreation
programs.
The Municipal Fund was a new major fund in 2007. An increase in revenues of $2.3 in property
taxes, as well as increased interest earnings helped contribute toward the overall fund balance
increase of 1.9 million. A total of $1.1 million was spent on the Heather Downs.
Proprietary Funds Analysis
The fund financial statements for the proprietary funds are presented in more detail, but essentially
provide the same type of information found in the business-type activities in the government-wide
financial statements.
Unrestricted net assets in the Waterworks Utility Fund and the Solid Waste Fund were $15 million
and $2.5 million respectively. This represents a decrease in Waterworks Utility Fund of $460,600
and an increase in the Solid Waste Fund of $351,483 in unrestricted net assets. Total Net Assets
increase in both funds $6.7 million and $347,544 respectfully. Other factors concerning the finances
of these two funds have already been addressed in the discussion of business-type activities.
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, 2006, amounts to $478.4 million as
presented on the following table.
Table 3
CAPITAL ASSETS
(Net of Accumulated Depreciation)
Governmental Activities Business Type Activities Total Activities
1/1/2006 12/31/2006 1/1/2006 12/31/2006 1/1/2006 12/31/2006
Land $81,997,215 $85,936,207 $6,976,321 $ 6,976,321 $88,973,536 $92,912,528
Construction in progress 15,819,455 24,371,783 2,512,285 4,126,115 18,331,740 28,497,898
Buildings and structures 55,442,027 53,544,216 11,467,501 11,131,546 66,909,528 64,675,762
Other improvements 70,441,585 77,247,581 197,274,995 201,871,536 267,716,580 279,119,117
Machinery and equipment 10,612,674 12,266,422 976,424 956,451 11,589,098 13,222,873
$234,312,956 $253,366,209 $219,207,526 $225,061,969 $453,520,482 $478,428,178
General government infrastructure includes streets, bridges, overlays, and traffic controls. More
detail about the City’s Capital Assets can be found in Note 5 to the financial statements.
2006 Comprehensive Annual Financial Report City of Renton, Washington
3-14 Management’s Discussion and Analysis
Debt Administration
As shown in Table 4, the City’s total outstanding debt at December 31, 2006, was $96.1 million.
This was a net increase (new issues less principal payments and refundings) of $14.4 million.
Table 4
OUTSTANDING DEBT
General Activities Business Type Activities Total Activities
1/1/2006 12/31/2006 1/1/2006 12/31/2006 1/1/2006 12/31/2006
General obligation bonds $29,107,664 $46,899,513 $29,107,664 $46,899,513
Revenue debt $35,790,000 $33,840,000 35,790,000 33,840,000
Other long term debt 11,589,783 10,692,018 11,589,789 10,692,018
Employee leave benefits 4,690,510 4,193,995 411,340 462,947 5,101,850 4,656,942
$33,798,174 $51,093,508 $47,791,123 $44,994,965 $81,589,297 $96,088,473
In 2006 the City issued $17,980,000 of Limited Tax General Obligation Bonds. The proceeds of
the bonds will be used for the purpose of providing funds for construction of transportation and
utility infrastructure and improvements. In addition, the City included $1,315,199 in accreted
interest for the 1997 Capital Appreciation Bonds.
The Water & Sewer Revenue Bond underlying ratings remain AA- at both rating agencies. More
detailed information about the City’s long-term debt can be found in Note 14 to the financial
statements.
FUTURE YEAR’S BUDGETARY IMPACTS
The City continues to benefit from progressive economic development activities allowing the City
to continue to grow.
• Seattle Seahawks moving their headquarters to Renton
• Providence Health Systems establishing its offices in the Southgate Office Park, which will
employ over 1,000 workers
• The Evergreen City Ballet occupying the old McLendon building
• Wizards of the Coast have relocated to new offices in Renton
• The FAA expanding its facilities in Renton
• The Landing project includes Fairfield Residential, a 900 apartment complex
• Target will open in October of 2007
• Conner Homes has begun development of 20-acres of luxury lakefront residential property
For more information regarding the factors affecting the future year’s budgetary impacts, please
refer to the Transmittal Letter within this document under: Factors Affecting Financial Condition -
Economic Condition and Outlook and Update from Budget Document - Outlook.
2006 Comprehensive Annual Financial Report City of Renton, Washington
Management’s Discussion and Analysis 3-15
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 Mike Bailey, Finance and Information Services
Administrator, 1055 South Grady Way, Renton, WA 98057 or visit our web site at
www.ci.renton.wa.us.
2006 Comprehensive Annual Financial Report City of Renton, Washington
3-16 Management’s Discussion and Analysis
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2006 Comprehensive Annual Financial Report City of Renton, Washington
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
Cash and cash equivalents $ 32,835,943 $ 15,969,931 $ 48,805,874
Investments at fair value 38,653,773 1,420,000 40,073,773
Receivables (net of allowance
for uncollectibles)13,388,628 4,800,050 18,188,678
Internal balances 2,749 (2,749) -
Inventories - 318,691 318,691
Prepayments 114,038 - 114,038
Other non-current assets 4,919,252 865,242 5,784,494
Restricted assets:
Cash and cash equivalents - 1,805,690 1,805,690
Investments at fair value - 1,750,000 1,750,000
Land 85,936,207 6,976,320 92,912,527
Construction in progress 24,371,783 4,126,115 28,497,898
Capital assets (net of accumulated
depreciation)143,058,222 213,959,532 357,017,754
Total assets $ 343,280,595 $ 251,988,822 $ 595,269,417
LIABILITIES
Accounts payable and
other liabilities $ 9,711,138 $ 2,170,529 $ 11,881,667
Interest payable 190,550 174,904 365,454
Unamortized (discount)/premium 648,229 (120,748) 527,481
Unearned revenue 70,661 339,845 410,506
Non-current liabilities:
Due within one year 3,994,780 3,024,159 7,018,939
Due in more than one year 47,098,728 41,970,809 89,069,537
Total liabilities $ 61,714,086 $ 47,559,498 $ 109,273,584
NET ASSETS
Investment in capital assets,
net of related debt $ 209,964,556 $ 181,515,939 $ 391,480,495
Restricted for:
Promotional programs 988,260 - 988,260
Construction projects 41,273,403 - 41,273,403
Debt service - 3,555,690 3,555,690
Unrestricted 29,340,290 19,357,695 48,697,985
Total net assets $ 281,566,509 $ 204,429,324 $ 485,995,833
PRIMARY GOVERNMENT
STATEMENT OF NET ASSETS
December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-1
2006 Comprehensive Annual Financial Report City of Renton, Washington
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
Cash and cash equivalents $ 32,835,943 $ 15,969,931 $ 48,805,874
Investments at fair value 38,653,773 1,420,000 40,073,773
Receivables (net of allowance
for uncollectibles)13,388,628 4,800,050 18,188,678
Internal balances 2,749 (2,749) -
Inventories - 318,691 318,691
Prepayments 114,038 - 114,038
Other non-current assets 4,919,252 865,242 5,784,494
Restricted assets:
Cash and cash equivalents - 1,805,690 1,805,690
Investments at fair value - 1,750,000 1,750,000
Land 85,936,207 6,976,320 92,912,527
Construction in progress 24,371,783 4,126,115 28,497,898
Capital assets (net of accumulated
depreciation)143,058,222 213,959,532 357,017,754
Total assets $ 343,280,595 $ 251,988,822 $ 595,269,417
LIABILITIES
Accounts payable and
other liabilities $ 9,711,138 $ 2,170,529 $ 11,881,667
Interest payable 190,550 174,904 365,454
Unamortized (discount)/premium 648,229 (120,748) 527,481
Unearned revenue 70,661 339,845 410,506
Non-current liabilities:
Due within one year 3,994,780 3,024,159 7,018,939
Due in more than one year 47,098,728 41,970,809 89,069,537
Total liabilities $ 61,714,086 $ 47,559,498 $ 109,273,584
NET ASSETS
Investment in capital assets,
net of related debt $ 209,964,556 $ 181,515,939 $ 391,480,495
Restricted for:
Promotional programs 988,260 - 988,260
Construction projects 41,273,403 - 41,273,403
Debt service - 3,555,690 3,555,690
Unrestricted 29,340,290 19,357,695 48,697,985
Total net assets $ 281,566,509 $ 204,429,324 $ 485,995,833
PRIMARY GOVERNMENT
STATEMENT OF NET ASSETS
December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-1
2006 Comprehensive Annual Financial Report City of Renton, Washington
OPERATING
CHARGES FOR GRANTS AND CAPITAL GRANT
FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS & CONTRIBUTIONS
Primary government:
Governmental activities:
General government $ 19,977,086 $ 21,852,465 $ 4,195,348 $ 18,329
Judicial 1,434,134 831,485 - -
Security of persons and property 30,749,762 517,151 254,865 -
Physical environment 2,618,832 400,798 - -
Transportation 15,798,138 1,628,154 - 1,469,926
Economic environment 6,372,118 4,368,399 44,369 4,418,865
Mental and physical health 295,072 - 78,256 2,750
Culture and recreation 9,695,924 1,742,071 23,998 -
Interest on long-term debt 1,772,370 - - -
Total governmental activities $ 88,713,436 $ 31,340,523 $ 4,596,836 $ 5,909,870
Business-type activities:
Waterworks utility $ 27,220,132 $ 27,036,324 $ 1,395 $ 6,035,073
Airport 1,196,363 909,425 - 282,130
Solid waste utility 9,706,016 9,837,915 76,293 -
Golf course 2,056,874 2,272,415 - -
Total business-type activities $ 40,179,385 $ 40,056,079 $ 77,688 $ 6,317,203
Total primary government $ 128,892,821 $ 71,396,602 $ 4,674,524 $ 12,227,073
PROGRAM REVENUES
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2006
Page 1 of 2
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
Net assets - ending
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-2
2006 Comprehensive Annual Financial Report City of Renton, Washington
OPERATING
CHARGES FOR GRANTS AND CAPITAL GRANT
FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS & CONTRIBUTIONS
Primary government:
Governmental activities:
General government $ 19,977,086 $ 21,852,465 $ 4,195,348 $ 18,329
Judicial 1,434,134 831,485 - -
Security of persons and property 30,749,762 517,151 254,865 -
Physical environment 2,618,832 400,798 - -
Transportation 15,798,138 1,628,154 - 1,469,926
Economic environment 6,372,118 4,368,399 44,369 4,418,865
Mental and physical health 295,072 - 78,256 2,750
Culture and recreation 9,695,924 1,742,071 23,998 -
Interest on long-term debt 1,772,370 - - -
Total governmental activities $ 88,713,436 $ 31,340,523 $ 4,596,836 $ 5,909,870
Business-type activities:
Waterworks utility $ 27,220,132 $ 27,036,324 $ 1,395 $ 6,035,073
Airport 1,196,363 909,425 - 282,130
Solid waste utility 9,706,016 9,837,915 76,293 -
Golf course 2,056,874 2,272,415 - -
Total business-type activities $ 40,179,385 $ 40,056,079 $ 77,688 $ 6,317,203
Total primary government $ 128,892,821 $ 71,396,602 $ 4,674,524 $ 12,227,073
PROGRAM REVENUES
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2006
Page 1 of 2
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
Net assets - ending
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-2
2006 Comprehensive Annual Financial Report City of Renton, Washington
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
$ 6,089,056 $ 6,089,056
(602,649) (602,649)
(29,977,746) (29,977,746)
(2,218,034) (2,218,034)
(12,700,058) (12,700,058)
2,459,515 2,459,515
(214,066) (214,066)
(7,929,855) (7,929,855)
(1,772,370) (1,772,370)
$ (46,866,207) $ (46,866,207)
$ 5,852,660 $ 5,852,660
(4,808) (4,808)
208,192 208,192
215,541 215,541
$ 6,271,585 $ 6,271,585
$ (46,866,207) $ 6,271,585 $ (40,594,622)
$ 23,600,131 $ - $ 23,600,131
- - -
20,869,595 - 20,869,595
11,219,303 - 11,219,303
7,718,945 - 7,718,945
3,799 - 3,799
3,251,975 881,486 4,133,461
689,243 282,808 972,051
(68,446) 68,446 -
$ 67,284,545 $ 1,232,740 $ 68,517,285
$ 20,418,338 $ 7,504,325 $ 27,922,663
$ 261,148,171 $ 196,924,999 $ 458,073,170
$ 281,566,509 $ 204,429,324 $ 485,995,833
CHANGES IN NET ASSETS
PRIMARY GOVERNMENT
NET (EXPENSE) REVENUE AND
Page 2 of 2
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-3
2006 Comprehensive Annual Financial Report City of Renton, Washington
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
$ 6,089,056 $ 6,089,056
(602,649) (602,649)
(29,977,746) (29,977,746)
(2,218,034) (2,218,034)
(12,700,058) (12,700,058)
2,459,515 2,459,515
(214,066) (214,066)
(7,929,855) (7,929,855)
(1,772,370) (1,772,370)
$ (46,866,207) $ (46,866,207)
$ 5,852,660 $ 5,852,660
(4,808) (4,808)
208,192 208,192
215,541 215,541
$ 6,271,585 $ 6,271,585
$ (46,866,207) $ 6,271,585 $ (40,594,622)
$ 23,600,131 $ - $ 23,600,131
- - -
20,869,595 - 20,869,595
11,219,303 - 11,219,303
7,718,945 - 7,718,945
3,799 - 3,799
3,251,975 881,486 4,133,461
689,243 282,808 972,051
(68,446) 68,446 -
$ 67,284,545 $ 1,232,740 $ 68,517,285
$ 20,418,338 $ 7,504,325 $ 27,922,663
$ 261,148,171 $ 196,924,999 $ 458,073,170
$ 281,566,509 $ 204,429,324 $ 485,995,833
CHANGES IN NET ASSETS
PRIMARY GOVERNMENT
NET (EXPENSE) REVENUE AND
Page 2 of 2
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-3
2006 Comprehensive Annual Financial Report City of Renton, Washington
MUNICIPAL
FACILITIES
GENERAL PARKS CIP
ASSETS
Cash & cash equivalents $ 5,333,644 $ 1,368,825 $ 4,027,976
Investments 3,000,000 - 10,750,000
Receivables (net of allowances)
Taxes 414,752 - 472,947
Customer accounts 1,294,924 425,984 -
Accrued interest & penalty 99,201 - 311,332
Due from other funds 330 - -
Due from other governmental units 4,296,279 58,924 11,792
Prepayments 8,000 - -
Restricted assets:
Advances due from other funds - - 63,900
TOTAL ASSETS $ 14,447,130 $ 1,853,733 $ 15,637,947
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2006
Page 1 of 4
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-4
2006 Comprehensive Annual Financial Report City of Renton, Washington
MUNICIPAL
FACILITIES
GENERAL PARKS CIP
ASSETS
Cash & cash equivalents $ 5,333,644 $ 1,368,825 $ 4,027,976
Investments 3,000,000 - 10,750,000
Receivables (net of allowances)
Taxes 414,752 - 472,947
Customer accounts 1,294,924 425,984 -
Accrued interest & penalty 99,201 - 311,332
Due from other funds 330 - -
Due from other governmental units 4,296,279 58,924 11,792
Prepayments 8,000 - -
Restricted assets:
Advances due from other funds - - 63,900
TOTAL ASSETS $ 14,447,130 $ 1,853,733 $ 15,637,947
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2006
Page 1 of 4
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-4
2006 Comprehensive Annual Financial Report City of Renton, Washington
OTHER TOTAL
GOVERNMENTAL GOVERNMENTAL
FUNDS FUNDS
ASSETS
Cash & cash equivalents $ 13,833,927 $ 24,564,372
Investments 15,373,773 29,123,773
Receivables (net of allowances)
Taxes 485,536 1,373,235
Customer accounts 679,388 2,400,296
Accrued interest & penalty 449,220 859,753
Due from other funds 62,898 63,228
Due from other governmental units 4,114,926 8,481,921
Prepayments - 8,000
Restricted assets:
Advances due from other funds - 63,900
TOTAL ASSETS $ 34,999,668 $ 66,938,478
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2006
Page 2 of 4
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-5
2006 Comprehensive Annual Financial Report City of Renton, Washington
OTHER TOTAL
GOVERNMENTAL GOVERNMENTAL
FUNDS FUNDS
ASSETS
Cash & cash equivalents $ 13,833,927 $ 24,564,372
Investments 15,373,773 29,123,773
Receivables (net of allowances)
Taxes 485,536 1,373,235
Customer accounts 679,388 2,400,296
Accrued interest & penalty 449,220 859,753
Due from other funds 62,898 63,228
Due from other governmental units 4,114,926 8,481,921
Prepayments - 8,000
Restricted assets:
Advances due from other funds - 63,900
TOTAL ASSETS $ 34,999,668 $ 66,938,478
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2006
Page 2 of 4
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-5
2006 Comprehensive Annual Financial Report City of Renton, Washington
MUNICIPAL
FACILITIES
GENERAL PARKS CIP
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $ 849,363 $ 178,340 $ 145,551
Taxes payable 10,567 4,494 -
Retainage payable - 367 34,383
Due to other funds 15,000 - -
Custodial accounts 69,707 39,500 -
Deposits 34,739 - -
Deferred revenue 803,681 5,687 -
Accrued employee wages and leave payable 1,918,976 339,356 -
Interfund advances - non-current - - -
Total liabilities $ 3,702,033 $ 567,744 $ 179,934
Fund balances
Reserved for:
Advances to other funds $- $ - $ 63,900
Prepaid items 8,000 - -
Unreserved, designated for:
General fund contingency 5,761,257 - -
Special revenue funds contingency - 949,909 -
Special revenue funds - 336,080 -
Capital project fund - - 15,394,113
Unreserved reported in:
General fund 4,975,840 - -
Total fund balances $ 10,745,097 $ 1,285,989 $ 15,458,013
TOTAL LIABILITIES AND FUND BALANCES $ 14,447,130 $ 1,853,733 $ 15,637,947
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2006
Page 3 of 4
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-6
2006 Comprehensive Annual Financial Report City of Renton, Washington
MUNICIPAL
FACILITIES
GENERAL PARKS CIP
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $ 849,363 $ 178,340 $ 145,551
Taxes payable 10,567 4,494 -
Retainage payable - 367 34,383
Due to other funds 15,000 - -
Custodial accounts 69,707 39,500 -
Deposits 34,739 - -
Deferred revenue 803,681 5,687 -
Accrued employee wages and leave payable 1,918,976 339,356 -
Interfund advances - non-current - - -
Total liabilities $ 3,702,033 $ 567,744 $ 179,934
Fund balances
Reserved for:
Advances to other funds $- $ - $ 63,900
Prepaid items 8,000 - -
Unreserved, designated for:
General fund contingency 5,761,257 - -
Special revenue funds contingency - 949,909 -
Special revenue funds - 336,080 -
Capital project fund - - 15,394,113
Unreserved reported in:
General fund 4,975,840 - -
Total fund balances $ 10,745,097 $ 1,285,989 $ 15,458,013
TOTAL LIABILITIES AND FUND BALANCES $ 14,447,130 $ 1,853,733 $ 15,637,947
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2006
Page 3 of 4
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-6
2006 Comprehensive Annual Financial Report City of Renton, Washington
OTHER TOTAL
GOVERNMENTAL GOVERNMENTAL
FUNDS FUNDS
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $ 1,469,163 $ 2,642,417
Taxes payable 1,991 17,052
Retainage payable 308,530 343,280
Due to other funds 37,624 52,624
Custodial accounts - 109,207
Deposits 32,981 67,720
Deferred revenue 7,404 816,772
Accrued employee wages and leave payable 293,964 2,552,296
Interfund advances - non-current 63,900 63,900
Total liabilities $ 2,215,557 $ 6,665,268
Fund balances
Reserved for:
Advances to other funds $- $ 63,900
Prepaid items - 8,000
Unreserved, designated for:
General fund contingency - 5,761,257
Special revenue funds contingency 941,029 1,890,938
Special revenue funds 2,016,171 2,352,251
Capital project fund 26,758,324 42,152,437
Debt service funds 3,068,587 3,068,587
Unreserved reported in:
General fund - 4,975,840
Total fund balances $ 32,784,111 $ 60,273,210
TOTAL LIABILITIES AND FUND BALANCES $ 34,999,668 $ 66,938,478
Page 4 of 4
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-7
2006 Comprehensive Annual Financial Report City of Renton, Washington
OTHER TOTAL
GOVERNMENTAL GOVERNMENTAL
FUNDS FUNDS
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $ 1,469,163 $ 2,642,417
Taxes payable 1,991 17,052
Retainage payable 308,530 343,280
Due to other funds 37,624 52,624
Custodial accounts - 109,207
Deposits 32,981 67,720
Deferred revenue 7,404 816,772
Accrued employee wages and leave payable 293,964 2,552,296
Interfund advances - non-current 63,900 63,900
Total liabilities $ 2,215,557 $ 6,665,268
Fund balances
Reserved for:
Advances to other funds $- $ 63,900
Prepaid items - 8,000
Unreserved, designated for:
General fund contingency - 5,761,257
Special revenue funds contingency 941,029 1,890,938
Special revenue funds 2,016,171 2,352,251
Capital project fund 26,758,324 42,152,437
Debt service funds 3,068,587 3,068,587
Unreserved reported in:
General fund - 4,975,840
Total fund balances $ 32,784,111 $ 60,273,210
TOTAL LIABILITIES AND FUND BALANCES $ 34,999,668 $ 66,938,478
Page 4 of 4
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-7
2006 Comprehensive Annual Financial Report City of Renton, Washington
FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ 60,273,210
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) and other non-current assets.$ 258,285,461
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 $ 746,111
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 $ (199,806)
Long-term liabilities (51,595,172)
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.$ 14,056,705
NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 281,566,509
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-8
2006 Comprehensive Annual Financial Report City of Renton, Washington
FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ 60,273,210
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) and other non-current assets.$ 258,285,461
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 $ 746,111
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 $ (199,806)
Long-term liabilities (51,595,172)
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.$ 14,056,705
NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 281,566,509
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-8
2006 Comprehensive Annual Financial Report City of Renton, Washington
MUNICIPAL
FACILITIES
GENERAL PARKS CIP
REVENUES
Taxes $ 39,260,540 $ 9,503,672 $ 4,514,285
Licenses and permits 3,132,587 - -
Intergovernmental revenues 2,846,753 7,331 -
Charges for services 2,246,722 2,272,314 -
Fines and forfeits 860,819 - -
Interfund revenues 1,791,180 - -
Special assessments - - -
Contributions 66,781 30,791 23,001
Interest 661,481 47,641 788,103
Miscellaneous revenues 215,804 6,891 -
TOTAL REVENUES $ 51,082,667 $ 11,868,640 $ 5,325,389
EXPENDITURES
Current:
General government $ 10,698,791 $ 2,830,626 $ -
Security of persons and property 31,157,303 - -
Physical environment 2,609,452 - -
Transportation - - -
Economic environment 4,709,745 481,227 33,969
Mental & physical health 9,231 - -
Culture & recreation - 8,108,612 -
Capital outlay 80,343 - 2,924,322
Debt service:
Principal payment - - -
Interest payment - - -
TOTAL EXPENDITURES $ 49,264,865 $ 11,420,465 $ 2,958,291
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ 1,817,802 $ 448,175 $ 2,367,098
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt $- $ - $ -
Transfer in - - -
Transfer (out) (272,000) - (462,000)
Sale of capital assets 1,424 - -
TOTAL OTHER FINANCE SOURCES (USES) $ (270,576) $ - $ (462,000)
NET CHANGE IN FUND BALANCE $ 1,547,226 $ 448,175 $ 1,905,098
FUND BALANCE JANUARY 1 9,197,871 837,814 13,552,915
FUND BALANCE DECEMBER 31 $ 10,745,097 $ 1,285,989 $ 15,458,013
Page 1 of 2
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-9
2006 Comprehensive Annual Financial Report City of Renton, Washington
MUNICIPAL
FACILITIES
GENERAL PARKS CIP
REVENUES
Taxes $ 39,260,540 $ 9,503,672 $ 4,514,285
Licenses and permits 3,132,587 - -
Intergovernmental revenues 2,846,753 7,331 -
Charges for services 2,246,722 2,272,314 -
Fines and forfeits 860,819 - -
Interfund revenues 1,791,180 - -
Special assessments - - -
Contributions 66,781 30,791 23,001
Interest 661,481 47,641 788,103
Miscellaneous revenues 215,804 6,891 -
TOTAL REVENUES $ 51,082,667 $ 11,868,640 $ 5,325,389
EXPENDITURES
Current:
General government $ 10,698,791 $ 2,830,626 $ -
Security of persons and property 31,157,303 - -
Physical environment 2,609,452 - -
Transportation - - -
Economic environment 4,709,745 481,227 33,969
Mental & physical health 9,231 - -
Culture & recreation - 8,108,612 -
Capital outlay 80,343 - 2,924,322
Debt service:
Principal payment - - -
Interest payment - - -
TOTAL EXPENDITURES $ 49,264,865 $ 11,420,465 $ 2,958,291
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ 1,817,802 $ 448,175 $ 2,367,098
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt $- $ - $ -
Transfer in - - -
Transfer (out) (272,000) - (462,000)
Sale of capital assets 1,424 - -
TOTAL OTHER FINANCE SOURCES (USES) $ (270,576) $ - $ (462,000)
NET CHANGE IN FUND BALANCE $ 1,547,226 $ 448,175 $ 1,905,098
FUND BALANCE JANUARY 1 9,197,871 837,814 13,552,915
FUND BALANCE DECEMBER 31 $ 10,745,097 $ 1,285,989 $ 15,458,013
Page 1 of 2
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-9
2006 Comprehensive Annual Financial Report City of Renton, Washington
OTHER TOTAL
GOVERNMENTAL GOVERNMENTAL
FUNDS FUNDS
REVENUES
Taxes $ 10,727,070 $ 64,005,567
Licenses and permits 1,829,920 4,962,507
Intergovernmental revenues 6,915,141 9,769,225
Charges for services 2,024,253 6,543,289
Fines and forfeits 45,866 906,685
Interfund revenues 1,051,967 2,843,147
Special assessments 511,932 511,932
Contributions 93,814 214,387
Interest 1,073,457 2,570,682
Miscellaneous revenues 1,213 223,908
TOTAL REVENUES $ 24,274,633 $ 92,551,329
EXPENDITURES
Current:
General government $ 443,175 $ 13,972,592
Security of persons and property - 31,157,303
Physical environment - 2,609,452
Transportation 5,097,449 5,097,449
Economic environment 294,278 5,519,219
Mental & physical health - 9,231
Culture & recreation 1,825,242 9,933,854
Capital outlay 18,112,860 21,117,525
Debt service:
Principal payment 1,503,350 1,503,350
Interest payment 2,129,656 2,129,656
TOTAL EXPENDITURES $ 29,406,010 $ 93,049,631
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ (5,131,377) $ (498,302)
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt $ 18,490,029 $ 18,490,029
Transfer in 2,962,895 2,962,895
Transfer (out) (2,971,341) (3,705,341)
Sale of capital assets 12,040 13,464
TOTAL OTHER FINANCE SOURCES (USES) $ 18,493,623 $ 17,761,047
NET CHANGE IN FUND BALANCE $ 13,362,246 $ 17,262,745
FUND BALANCE JANUARY 1 19,421,865 43,010,465
FUND BALANCE DECEMBER 31 $ 32,784,111 $ 60,273,210
Page 2 of 2
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2006
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-10
2006 Comprehensive Annual Financial Report City of Renton, Washington
OTHER TOTAL
GOVERNMENTAL GOVERNMENTAL
FUNDS FUNDS
REVENUES
Taxes $ 10,727,070 $ 64,005,567
Licenses and permits 1,829,920 4,962,507
Intergovernmental revenues 6,915,141 9,769,225
Charges for services 2,024,253 6,543,289
Fines and forfeits 45,866 906,685
Interfund revenues 1,051,967 2,843,147
Special assessments 511,932 511,932
Contributions 93,814 214,387
Interest 1,073,457 2,570,682
Miscellaneous revenues 1,213 223,908
TOTAL REVENUES $ 24,274,633 $ 92,551,329
EXPENDITURES
Current:
General government $ 443,175 $ 13,972,592
Security of persons and property - 31,157,303
Physical environment - 2,609,452
Transportation 5,097,449 5,097,449
Economic environment 294,278 5,519,219
Mental & physical health - 9,231
Culture & recreation 1,825,242 9,933,854
Capital outlay 18,112,860 21,117,525
Debt service:
Principal payment 1,503,350 1,503,350
Interest payment 2,129,656 2,129,656
TOTAL EXPENDITURES $ 29,406,010 $ 93,049,631
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ (5,131,377) $ (498,302)
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt $ 18,490,029 $ 18,490,029
Transfer in 2,962,895 2,962,895
Transfer (out) (2,971,341) (3,705,341)
Sale of capital assets 12,040 13,464
TOTAL OTHER FINANCE SOURCES (USES) $ 18,493,623 $ 17,761,047
NET CHANGE IN FUND BALANCE $ 13,362,246 $ 17,262,745
FUND BALANCE JANUARY 1 19,421,865 43,010,465
FUND BALANCE DECEMBER 31 $ 32,784,111 $ 60,273,210
Page 2 of 2
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2006
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-10
2006 Comprehensive Annual Financial Report City of Renton, Washington
NET CHANGES IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ 17,262,745
Amounts reported for governmental activities in the statement
of activities are different because:
Governmental funds report capital outlays as expenditures;
however, in the statement of activities, the cost of those
assets are depreciated over their estimated useful lives.
Expenditures for capital assets $ 25,035,636
Less current year depreciation (6,671,845)
Repayment of long-term debt is an expenditure in governmen-
tal 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.
Principal payments $ 1,503,350
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 $ (19,299,349)
Net Pension Obligation over funded / (under funded)773,166
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.$ 1,814,635
CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 20,418,338
For the Year Ended December 31, 2006
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-11
2006 Comprehensive Annual Financial Report City of Renton, Washington
NET CHANGES IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ 17,262,745
Amounts reported for governmental activities in the statement
of activities are different because:
Governmental funds report capital outlays as expenditures;
however, in the statement of activities, the cost of those
assets are depreciated over their estimated useful lives.
Expenditures for capital assets $ 25,035,636
Less current year depreciation (6,671,845)
Repayment of long-term debt is an expenditure in governmen-
tal 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.
Principal payments $ 1,503,350
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 $ (19,299,349)
Net Pension Obligation over funded / (under funded)773,166
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.$ 1,814,635
CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 20,418,338
For the Year Ended December 31, 2006
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-11
2006 Comprehensive Annual Financial Report City of Renton, Washington
GOVERNMENTAL
OTHER TOTAL ACTIVITIES
WATERWORKS ENTERPRISE ENTERPRISE INTERNAL SERVICE
UTILITY SOLID WASTE FUNDS FUNDS FUNDS
ASSETS
Current assets:
Cash & cash equivalents $ 12,479,315 $ 1,576,549 $ 1,914,067 $ 15,969,931 $ 8,271,571
Investments at fair value 520,000 150,000 750,000 1,420,000 9,530,000
Receivables (net of allowances):
Customer accounts 3,165,593 1,132,065 45,529 4,343,187 30,519
Special assessments - current 33,894 - - 33,894 -
Interest - investments 57,792 3,062 12,400 73,254 241,027
Due from other funds 56,328 - - 56,328 -
Due from other governmental units 197,446 101,930 50,339 349,715 1,876
Inventory of materials and supplies 271,754 - 46,937 318,691 -
Prepayments - - - - 106,038
Total current assets $ 16,782,122 $ 2,963,606 $ 2,819,272 $ 22,565,000 $ 18,181,031
Noncurrent assets:
Restricted cash, cash equivalents, and
investments at fair value $ 3,114,332 $ - $ 441,358 $ 3,555,690 $ -
Special assessments deferred 62,966 - - 62,966 -
Capital assets (net)205,585,486 1,313 19,475,168 225,061,967 5,317,155
Deferred charges and other assets 761,729 - 40,547 802,276 -
Total noncurrent assets 209,524,513 1,313 19,957,073 229,482,899 5,317,155
TOTAL ASSETS $ 226,306,635 $ 2,964,919 $ 22,776,345 $ 252,047,899 $ 23,498,186
BUSINESS-TYPE ACTIVITIES
ENTERPRISE FUNDS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2006
Page 1 of 2
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-12
2006 Comprehensive Annual Financial Report City of Renton, Washington
GOVERNMENTAL
OTHER TOTAL ACTIVITIES
WATERWORKS ENTERPRISE ENTERPRISE INTERNAL SERVICE
UTILITY SOLID WASTE FUNDS FUNDS FUNDS
ASSETS
Current assets:
Cash & cash equivalents $ 12,479,315 $ 1,576,549 $ 1,914,067 $ 15,969,931 $ 8,271,571
Investments at fair value 520,000 150,000 750,000 1,420,000 9,530,000
Receivables (net of allowances):
Customer accounts 3,165,593 1,132,065 45,529 4,343,187 30,519
Special assessments - current 33,894 - - 33,894 -
Interest - investments 57,792 3,062 12,400 73,254 241,027
Due from other funds 56,328 - - 56,328 -
Due from other governmental units 197,446 101,930 50,339 349,715 1,876
Inventory of materials and supplies 271,754 - 46,937 318,691 -
Prepayments - - - - 106,038
Total current assets $ 16,782,122 $ 2,963,606 $ 2,819,272 $ 22,565,000 $ 18,181,031
Noncurrent assets:
Restricted cash, cash equivalents, and
investments at fair value $ 3,114,332 $ - $ 441,358 $ 3,555,690 $ -
Special assessments deferred 62,966 - - 62,966 -
Capital assets (net)205,585,486 1,313 19,475,168 225,061,967 5,317,155
Deferred charges and other assets 761,729 - 40,547 802,276 -
Total noncurrent assets 209,524,513 1,313 19,957,073 229,482,899 5,317,155
TOTAL ASSETS $ 226,306,635 $ 2,964,919 $ 22,776,345 $ 252,047,899 $ 23,498,186
BUSINESS-TYPE ACTIVITIES
ENTERPRISE FUNDS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2006
Page 1 of 2
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-12
2006 Comprehensive Annual Financial Report City of Renton, Washington
GOVERNMENTAL
OTHER TOTAL ACTIVITIES
WATERWORKS ENTERPRISE ENTERPRISE INTERNAL SERVICE
UTILITY SOLID WASTE FUNDS FUNDS FUNDS
LIABILITIES
Current liabilities:
Accounts payable $ 1,148,019 $ 349,787 $ 97,530 $ 1,595,336 $ 1,128,528
Retainage payable 52,481 - 41,634 94,115 -
Due to other funds 50,676 - 8,400 59,076 7,855
Accrued interest payable 161,874 - 13,030 174,904 -
Accrued employee wages and benefits payable 181,740 202 51,469 233,411 45,085
Accrued taxes payable 35,147 38,561 30,258 103,966 616
Custodial Accounts 37,919 - 105,783 143,702 -
Deferred revenue 280,764 - 59,081 339,845 -
Revenue bonds payable $ 1,740,000 $ - $ 285,000 $ 2,025,000 $ -
Capital leases payable - - - - -
Total current liabilities $ 3,688,620 $ 388,550 $ 692,185 $ 4,769,355 $ 1,182,084
Long-term liabilities:
Revenue bonds payable $ 29,010,000 $ - $ 2,805,000 $ 31,815,000 $ -
Unamortized premium on revenue bonds 468,747 - - 468,747 -
Unamortized discount on revenue bonds (401,585) - (272,813) (674,398) -
Deferred amount on revenue bond refunding 84,903 - - 84,903 -
Accrued employee wages and benefits payable 371,552 18,179 73,217 462,948 314,460
Claims incurred but not reported - - - - 2,627,782
Public works trust fund loan payable 10,692,020 - - 10,692,020 -
Total long-term liabilities $ 40,225,637 $ 18,179 $ 2,605,404 $ 42,849,220 $ 2,942,242
TOTAL LIABILITIES $ 43,914,257 $ 406,729 $ 3,297,589 $ 47,618,575 $ 4,124,326
NET ASSETS
Investment in capital assets,
net of related debt $ 164,143,466 $ 1,313 $ 16,385,168 $ 180,529,947 $ 5,317,155
Restricted 3,114,332 - 441,358 3,555,690 -
Unrestricted 15,134,580 2,556,877 2,652,230 20,343,687 14,056,705
TOTAL NET ASSETS $ 182,392,378 $ 2,558,190 $ 19,478,756 $ 204,429,324 $ 19,373,860
BUSINESS-TYPE ACTIVITIES
ENTERPRISE FUNDS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2006
Page 2 of 2
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-13
2006 Comprehensive Annual Financial Report City of Renton, Washington
GOVERNMENTAL
OTHER TOTAL ACTIVITIES
WATERWORKS ENTERPRISE ENTERPRISE INTERNAL SERVICE
UTILITY SOLID WASTE FUNDS FUNDS FUNDS
LIABILITIES
Current liabilities:
Accounts payable $ 1,148,019 $ 349,787 $ 97,530 $ 1,595,336 $ 1,128,528
Retainage payable 52,481 - 41,634 94,115 -
Due to other funds 50,676 - 8,400 59,076 7,855
Accrued interest payable 161,874 - 13,030 174,904 -
Accrued employee wages and benefits payable 181,740 202 51,469 233,411 45,085
Accrued taxes payable 35,147 38,561 30,258 103,966 616
Custodial Accounts 37,919 - 105,783 143,702 -
Deferred revenue 280,764 - 59,081 339,845 -
Revenue bonds payable $ 1,740,000 $ - $ 285,000 $ 2,025,000 $ -
Capital leases payable - - - - -
Total current liabilities $ 3,688,620 $ 388,550 $ 692,185 $ 4,769,355 $ 1,182,084
Long-term liabilities:
Revenue bonds payable $ 29,010,000 $ - $ 2,805,000 $ 31,815,000 $ -
Unamortized premium on revenue bonds 468,747 - - 468,747 -
Unamortized discount on revenue bonds (401,585) - (272,813) (674,398) -
Deferred amount on revenue bond refunding 84,903 - - 84,903 -
Accrued employee wages and benefits payable 371,552 18,179 73,217 462,948 314,460
Claims incurred but not reported - - - - 2,627,782
Public works trust fund loan payable 10,692,020 - - 10,692,020 -
Total long-term liabilities $ 40,225,637 $ 18,179 $ 2,605,404 $ 42,849,220 $ 2,942,242
TOTAL LIABILITIES $ 43,914,257 $ 406,729 $ 3,297,589 $ 47,618,575 $ 4,124,326
NET ASSETS
Investment in capital assets,
net of related debt $ 164,143,466 $ 1,313 $ 16,385,168 $ 180,529,947 $ 5,317,155
Restricted 3,114,332 - 441,358 3,555,690 -
Unrestricted 15,134,580 2,556,877 2,652,230 20,343,687 14,056,705
TOTAL NET ASSETS $ 182,392,378 $ 2,558,190 $ 19,478,756 $ 204,429,324 $ 19,373,860
BUSINESS-TYPE ACTIVITIES
ENTERPRISE FUNDS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2006
Page 2 of 2
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-13
2006 Comprehensive Annual Financial Report City of Renton, Washington
GOVERNMENTAL
OTHER TOTAL ACTIVITIES
WATERWORKS ENTERPRISE ENTERPRISE INTERNAL SERVICE
UTILITY SOLID WASTE FUNDS FUNDS FUNDS
OPERATING REVENUES:
Charges for services $ 25,982,868 $ 9,904,371 $ 3,181,840 $ 39,069,079 $ 9,449,690
Interdepartmental services 712,956 3,606 - 716,562 -
Other services 401,393 76,293 190 477,876 7,901,626
TOTAL OPERATING REVENUES $ 27,097,217 $ 9,984,270 $ 3,182,030 $ 40,263,517 $ 17,351,316
OPERATING EXPENSES:
Operations and maintenance $ 4,899,649 $ 575,672 $ 1,490,530 $ 6,965,851 $ 1,343,695
Benefit payments 1,001,583 75,292 344,846 1,421,721 10,918,350
Professional services 264,348 7,962,741 46,738 8,273,827 657,388
Administrative and general 12,060,638 44,632 453,022 12,558,292 1,492,481
Insurance 62,400 - 25,300 87,700 2,159,518
Taxes 1,989,785 1,043,740 10,811 3,044,336 -
Depreciation 5,462,690 3,939 648,595 6,115,224 876,839
TOTAL OPERATING EXPENSES $ 25,741,093 $ 9,706,016 $ 3,019,842 $ 38,466,951 $ 17,448,271
OPERATING INCOME (LOSS)$ 1,356,124 $ 278,254 $ 162,188 $ 1,796,566 $ (96,955)
NON-OPERATING REVENUES(EXPENSES):
Intergovernmental revenues $- $ - $ 282,130 $ 282,130 $ 11,163
Interest revenues 653,291 69,290 158,905 881,486 681,292
Gain (loss) on sale of capital assets - - 4,009 4,009 86,244
Other non-operating revenues (expenses)160,233 - 7,039 167,272 458,889
Interest expense (1,428,178) - (167,782) (1,595,960) -
Amortization of debt discount and expense (50,862) - (65,613) (116,475) -
NON-OPERATING REVENUE NET OF EXPENSE $ (665,516) $ 69,290 $ 218,688 $ (377,538) $ 1,237,588
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS $ 690,608 $ 347,544 $ 380,876 $ 1,419,028 $ 1,140,633
Capital contributions 6,016,851 - - 6,016,851 -
Transfers in (out)68,446 - - 68,446 674,000
CHANGE IN NET ASSETS $ 6,775,905 $ 347,544 $ 380,876 $ 7,504,325 $ 1,814,633
FUND BALANCE JANUARY 1 $ 175,616,473 $ 2,210,646 $ 19,097,880 $ 196,924,999 $ 17,559,227
NET ASSETS, DECEMBER 31 $ 182,392,378 $ 2,558,190 $ 19,478,756 $ 204,429,324 $ 19,373,860
BUSINESS-TYPE ACTIVITIES
ENTERPRISE FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For the Year Ended December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-14
2006 Comprehensive Annual Financial Report City of Renton, Washington
GOVERNMENTAL
OTHER TOTAL ACTIVITIES
WATERWORKS ENTERPRISE ENTERPRISE INTERNAL SERVICE
UTILITY SOLID WASTE FUNDS FUNDS FUNDS
OPERATING REVENUES:
Charges for services $ 25,982,868 $ 9,904,371 $ 3,181,840 $ 39,069,079 $ 9,449,690
Interdepartmental services 712,956 3,606 - 716,562 -
Other services 401,393 76,293 190 477,876 7,901,626
TOTAL OPERATING REVENUES $ 27,097,217 $ 9,984,270 $ 3,182,030 $ 40,263,517 $ 17,351,316
OPERATING EXPENSES:
Operations and maintenance $ 4,899,649 $ 575,672 $ 1,490,530 $ 6,965,851 $ 1,343,695
Benefit payments 1,001,583 75,292 344,846 1,421,721 10,918,350
Professional services 264,348 7,962,741 46,738 8,273,827 657,388
Administrative and general 12,060,638 44,632 453,022 12,558,292 1,492,481
Insurance 62,400 - 25,300 87,700 2,159,518
Taxes 1,989,785 1,043,740 10,811 3,044,336 -
Depreciation 5,462,690 3,939 648,595 6,115,224 876,839
TOTAL OPERATING EXPENSES $ 25,741,093 $ 9,706,016 $ 3,019,842 $ 38,466,951 $ 17,448,271
OPERATING INCOME (LOSS)$ 1,356,124 $ 278,254 $ 162,188 $ 1,796,566 $ (96,955)
NON-OPERATING REVENUES(EXPENSES):
Intergovernmental revenues $- $ - $ 282,130 $ 282,130 $ 11,163
Interest revenues 653,291 69,290 158,905 881,486 681,292
Gain (loss) on sale of capital assets - - 4,009 4,009 86,244
Other non-operating revenues (expenses)160,233 - 7,039 167,272 458,889
Interest expense (1,428,178) - (167,782) (1,595,960) -
Amortization of debt discount and expense (50,862) - (65,613) (116,475) -
NON-OPERATING REVENUE NET OF EXPENSE $ (665,516) $ 69,290 $ 218,688 $ (377,538) $ 1,237,588
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS $ 690,608 $ 347,544 $ 380,876 $ 1,419,028 $ 1,140,633
Capital contributions 6,016,851 - - 6,016,851 -
Transfers in (out)68,446 - - 68,446 674,000
CHANGE IN NET ASSETS $ 6,775,905 $ 347,544 $ 380,876 $ 7,504,325 $ 1,814,633
FUND BALANCE JANUARY 1 $ 175,616,473 $ 2,210,646 $ 19,097,880 $ 196,924,999 $ 17,559,227
NET ASSETS, DECEMBER 31 $ 182,392,378 $ 2,558,190 $ 19,478,756 $ 204,429,324 $ 19,373,860
BUSINESS-TYPE ACTIVITIES
ENTERPRISE FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For the Year Ended December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-14
2006 Comprehensive Annual Financial Report City of Renton, Washington
GOVERNMENTAL
OTHER TOTAL ACTIVITIES
WATERWORKS ENTERPRISE ENTERPRISE INTERNAL SERVICE
UTILITY SOLID WASTE FUNDS FUNDS FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services $ 28,223,157 $ 9,881,546 $ 3,304,156 $ 41,408,859 $ 17,342,303
Cash received from other funds for services 777,809 - - 777,809 -
Cash paid to suppliers for goods & services (18,259,034) (9,194,176) (2,043,023) (29,496,233) (3,331,790)
Cash paid to other funds for goods & services (53,189) 654 (52,535) -
Cash paid to employees (968,511) (71,190) (333,350) (1,373,051) (10,440,402)
Other operating receipts - (347,544) - (347,544) (1,269,500)
Other non-operating receipts 160,233 - (156,734) 3,499 -
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES $ 9,880,465 $ 268,636 $ 771,703 $ 10,920,804 $ 2,300,611
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds $ 68,446 $ - $ 282,130 $ 350,576 $ 272,000
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES $ 68,446 $ - $ 282,130 $ 350,576 $ 272,000
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets $ (10,130,051) $ - $ (1,840,220) $ (11,970,271) $ (1,153,134)
Capital contributions 6,016,851 - - 6,016,851 -
Principal payments on debt (2,569,145) - (285,000) (2,854,145) -
Interest payments on debt (1,431,843) - 13,965 (1,417,878) -
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES $ (8,114,188) $ - $ (2,111,255) $ (10,225,443) $ (1,153,134)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of investments $ 2,139,475 $ - $ - $ 2,139,475 $ -
Payments for investments - - 988,821 988,821 (394,871)
Interest on investments - 74,013 200,146 274,159 710,153
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES $ 2,139,475 $ 74,013 $ 1,188,967 $ 3,402,455 $ 315,282
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS $ 3,974,198 $ 342,649 $ 131,545 $ 4,448,392 $ 1,734,759
CASH & CASH EQUIVALENTS, JANUARY 1 8,505,117 1,233,900 1,782,522 11,521,539 6,536,812
CASH & CASH EQUIVALENTS, DECEMBER 31 $ 12,479,315 $ 1,576,549 $ 1,914,067 $ 15,969,931 $ 8,271,571
BUSINESS-TYPE ACTIVITIES
ENTERPRISE FUNDS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Page 1 of 2
For the Year Ended December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-15
2006 Comprehensive Annual Financial Report City of Renton, Washington
GOVERNMENTAL
OTHER TOTAL ACTIVITIES
WATERWORKS ENTERPRISE ENTERPRISE INTERNAL SERVICE
UTILITY SOLID WASTE FUNDS FUNDS FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services $ 28,223,157 $ 9,881,546 $ 3,304,156 $ 41,408,859 $ 17,342,303
Cash received from other funds for services 777,809 - - 777,809 -
Cash paid to suppliers for goods & services (18,259,034) (9,194,176) (2,043,023) (29,496,233) (3,331,790)
Cash paid to other funds for goods & services (53,189) 654 (52,535) -
Cash paid to employees (968,511) (71,190) (333,350) (1,373,051) (10,440,402)
Other operating receipts - (347,544) - (347,544) (1,269,500)
Other non-operating receipts 160,233 - (156,734) 3,499 -
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES $ 9,880,465 $ 268,636 $ 771,703 $ 10,920,804 $ 2,300,611
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds $ 68,446 $ - $ 282,130 $ 350,576 $ 272,000
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES $ 68,446 $ - $ 282,130 $ 350,576 $ 272,000
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets $ (10,130,051) $ - $ (1,840,220) $ (11,970,271) $ (1,153,134)
Capital contributions 6,016,851 - - 6,016,851 -
Principal payments on debt (2,569,145) - (285,000) (2,854,145) -
Interest payments on debt (1,431,843) - 13,965 (1,417,878) -
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES $ (8,114,188) $ - $ (2,111,255) $ (10,225,443) $ (1,153,134)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of investments $ 2,139,475 $ - $ - $ 2,139,475 $ -
Payments for investments - - 988,821 988,821 (394,871)
Interest on investments - 74,013 200,146 274,159 710,153
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES $ 2,139,475 $ 74,013 $ 1,188,967 $ 3,402,455 $ 315,282
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS $ 3,974,198 $ 342,649 $ 131,545 $ 4,448,392 $ 1,734,759
CASH & CASH EQUIVALENTS, JANUARY 1 8,505,117 1,233,900 1,782,522 11,521,539 6,536,812
CASH & CASH EQUIVALENTS, DECEMBER 31 $ 12,479,315 $ 1,576,549 $ 1,914,067 $ 15,969,931 $ 8,271,571
BUSINESS-TYPE ACTIVITIES
ENTERPRISE FUNDS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Page 1 of 2
For the Year Ended December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-15
2006 Comprehensive Annual Financial Report City of Renton, Washington
GOVERNMENTAL
ACTIVITIES
OTHER TOTAL INTERNAL
WATERWORKS SOLID ENTERPRISE ENTERPRISE SERVICE
UTILITY WASTE FUNDS FUNDS FUNDS
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)$ 1,356,124 $ 278,254 $ 162,188 $ 1,796,566 $ (96,955)
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization of
deferred charges $ 5,462,690 $ 3,939 $ 648,595 $ 6,115,224 $ 876,839
Other non-operating revenue 160,233 - (156,734) 3,499 545,133
(Increase) decrease in
accounts receivable 1,838,896 (102,724) 152,535 1,888,707 (9,013)
(Increase) decrease in due from
other funds/governmental units 64,853 65,853 (42,633) 88,073 4,849
(Increase) decrease in inventory
& prepaid items 29,758 - 6,164 35,922 (10,922)
Increase (decrease) in vouchers
retainage payable (19,971) 19,526 (16,017) (16,462) 495,371
Increase (decrease) in due to
other governmental units (53,189) - 654 (52,535) -
Increase (decrease) in payables
& other short-term liabilities 866,040 (314) (1,606) 864,120 6,439
Increase (decrease) in
customer deposits - - 16,692 16,692 -
Increase (decrease) in
deferred revenues 141,959 - (9,631) 132,328 -
Increase (decrease) in accrued
employee leave benefits 33,072 4,102 11,496 48,670 488,870
Total adjustments $ 8,524,341 $ (9,618) - 609,515$ $ 9,124,238 $ 2,397,566
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES $ 9,880,465 $ 268,636 $ 771,703 $ 10,920,804 $ 2,300,611
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Capital disposal and retirement 31,237$ -$ -$ 31,237$ -$
Contributions of capital assets 6,016,851 - - 6,016,851 -
Net amort. bond prem. discount & bond issue costs 3,931 - 65,005 68,936 -
Increase in fair value of investments 29,022 - 2,821 31,843 -
Depreciation 5,462,690 3,939 645,867 6,112,496 876,839
BUSINESS-TYPE ACTIVITIES
ENTERPRISE FUNDS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Page 2 of 2
For the Year Ended December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-16
2006 Comprehensive Annual Financial Report City of Renton, Washington
GOVERNMENTAL
ACTIVITIES
OTHER TOTAL INTERNAL
WATERWORKS SOLID ENTERPRISE ENTERPRISE SERVICE
UTILITY WASTE FUNDS FUNDS FUNDS
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)$ 1,356,124 $ 278,254 $ 162,188 $ 1,796,566 $ (96,955)
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization of
deferred charges $ 5,462,690 $ 3,939 $ 648,595 $ 6,115,224 $ 876,839
Other non-operating revenue 160,233 - (156,734) 3,499 545,133
(Increase) decrease in
accounts receivable 1,838,896 (102,724) 152,535 1,888,707 (9,013)
(Increase) decrease in due from
other funds/governmental units 64,853 65,853 (42,633) 88,073 4,849
(Increase) decrease in inventory
& prepaid items 29,758 - 6,164 35,922 (10,922)
Increase (decrease) in vouchers
retainage payable (19,971) 19,526 (16,017) (16,462) 495,371
Increase (decrease) in due to
other governmental units (53,189) - 654 (52,535) -
Increase (decrease) in payables
& other short-term liabilities 866,040 (314) (1,606) 864,120 6,439
Increase (decrease) in
customer deposits - - 16,692 16,692 -
Increase (decrease) in
deferred revenues 141,959 - (9,631) 132,328 -
Increase (decrease) in accrued
employee leave benefits 33,072 4,102 11,496 48,670 488,870
Total adjustments $ 8,524,341 $ (9,618) - 609,515$ $ 9,124,238 $ 2,397,566
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES $ 9,880,465 $ 268,636 $ 771,703 $ 10,920,804 $ 2,300,611
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Capital disposal and retirement 31,237$ -$ -$ 31,237$ -$
Contributions of capital assets 6,016,851 - - 6,016,851 -
Net amort. bond prem. discount & bond issue costs 3,931 - 65,005 68,936 -
Increase in fair value of investments 29,022 - 2,821 31,843 -
Depreciation 5,462,690 3,939 645,867 6,112,496 876,839
BUSINESS-TYPE ACTIVITIES
ENTERPRISE FUNDS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Page 2 of 2
For the Year Ended December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-16
2006 Comprehensive Annual Financial Report City of Renton, Washington
PENSION TRUST AGENCY
FIREFIGHTER'S SPECIAL
PENSION DEPOSITS
ASSETS
Cash & cash equivalents $ 921,296 $ 471,522
Investments at fair value:
Federal National Mortgage Association 127,020 -
US Treasury Strips 4,316,554 -
Receivables (net of allowances)
Interest on investments 2,498,379 -
TOTAL ASSETS $ 7,863,249 $ 471,522
LIABILITIES
Vouchers & contracts payable $- $ 80,380
Deposits payable 391,142
TOTAL LIABILITIES $ - $ 471,522
NET ASSETS
Held is trust for pension benefits
& other purposes $ 7,863,249 $ -
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-17
2006 Comprehensive Annual Financial Report City of Renton, Washington
PENSION TRUST AGENCY
FIREFIGHTER'S SPECIAL
PENSION DEPOSITS
ASSETS
Cash & cash equivalents $ 921,296 $ 471,522
Investments at fair value:
Federal National Mortgage Association 127,020 -
US Treasury Strips 4,316,554 -
Receivables (net of allowances)
Interest on investments 2,498,379 -
TOTAL ASSETS $ 7,863,249 $ 471,522
LIABILITIES
Vouchers & contracts payable $- $ 80,380
Deposits payable 391,142
TOTAL LIABILITIES $ - $ 471,522
NET ASSETS
Held is trust for pension benefits
& other purposes $ 7,863,249 $ -
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-17
2006 Comprehensive Annual Financial Report City of Renton, Washington
PENSION TRUST
FIREMEN'S
PENSION
ADDITIONS:
Other contributions:
Fire insurance premiums $ 77,821
Investment income
Investment earnings 202,598
TOTAL ADDITIONS $ 280,419
DEDUCTIONS:
Benefit payments $ 414,281
Medical benefit payments 11,537
Administrative and general 7,216
TOTAL DEDUCTIONS $ 433,034
NET INCREASE (DECREASE) $ (152,615)
NET ASSETS - JANUARY 1 $ 8,015,864
NET ASSETS - DECEMBER 31 $ 7,863,249
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIREMEN'S PENSION FUND
For the Year Ended December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-18
2006 Comprehensive Annual Financial Report City of Renton, Washington
PENSION TRUST
FIREMEN'S
PENSION
ADDITIONS:
Other contributions:
Fire insurance premiums $ 77,821
Investment income
Investment earnings 202,598
TOTAL ADDITIONS $ 280,419
DEDUCTIONS:
Benefit payments $ 414,281
Medical benefit payments 11,537
Administrative and general 7,216
TOTAL DEDUCTIONS $ 433,034
NET INCREASE (DECREASE) $ (152,615)
NET ASSETS - JANUARY 1 $ 8,015,864
NET ASSETS - DECEMBER 31 $ 7,863,249
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIREMEN'S PENSION FUND
For the Year Ended December 31, 2006
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-18
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-19
NOTES TO THE FINANCIAL STATEMENTS
January 1, 2006 through December 31, 2006
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 enterprise activities FASB
Statements and Interpretations, Accounting Principles Board opinions, and Accounting Research
Bulletins of the Committee of Accounting Procedure issued after November 30, 1989.
The City had implemented all applicable GASB Statements through Statement No. 47 with the
exception of Statement No. 45: Accounting and Financial Reporting by Employers for
Postemployment Benefits Other Than Pensions. During 2006, the City implemented, if
applicable, Statement No. 43: Financial Reporting for Postemployment Benefit Plans Other Than
Pension Plans, Statement No. 46: Net Asset Restricted by Enabling Legislation – an amendment
of GASB Statement No. 34, and Statement No. 47: Accounting for Terminated Benefits. All
other applicable statements were implemented prior to 2006.
A. REPORTING ENTITY
As required by GAAP the City’s financial statements present the City of Renton – the primary
government.
The City of Renton’s Mayor appoints the Governing Board for the Renton Housing Authority,
which is not considered a component unit of the City. The City is under no obligation to
subsidize, nor does it exercise any other prerequisite for inclusion.
The City of Renton has no component units (either blended or discretely presented) included in
these statements.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-19
NOTES TO THE FINANCIAL STATEMENTS
January 1, 2006 through December 31, 2006
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 enterprise activities FASB
Statements and Interpretations, Accounting Principles Board opinions, and Accounting Research
Bulletins of the Committee of Accounting Procedure issued after November 30, 1989.
The City had implemented all applicable GASB Statements through Statement No. 47 with the
exception of Statement No. 45: Accounting and Financial Reporting by Employers for
Postemployment Benefits Other Than Pensions. During 2006, the City implemented, if
applicable, Statement No. 43: Financial Reporting for Postemployment Benefit Plans Other Than
Pension Plans, Statement No. 46: Net Asset Restricted by Enabling Legislation – an amendment
of GASB Statement No. 34, and Statement No. 47: Accounting for Terminated Benefits. All
other applicable statements were implemented prior to 2006.
A. REPORTING ENTITY
As required by GAAP the City’s financial statements present the City of Renton – the primary
government.
The City of Renton’s Mayor appoints the Governing Board for the Renton Housing Authority,
which is not considered a component unit of the City. The City is under no obligation to
subsidize, nor does it exercise any other prerequisite for inclusion.
The City of Renton has no component units (either blended or discretely presented) included in
these statements.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-20
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.
GOVERNMENT-WIDE STATEMENTS
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
and property, physical environment, transportation, economic environment, mental and physical
health, culture and recreation, waterworks utility, airport, solid waste utility, and golf course).
General government revenues (property taxes, timber taxes, retail sales and 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.
General revenues normally cover the net cost, by function or business-type activity.
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
In the fund financial statements, 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 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
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-20
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.
GOVERNMENT-WIDE STATEMENTS
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
and property, physical environment, transportation, economic environment, mental and physical
health, culture and recreation, waterworks utility, airport, solid waste utility, and golf course).
General government revenues (property taxes, timber taxes, retail sales and 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.
General revenues normally cover the net cost, by function or business-type activity.
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
In the fund financial statements, 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 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
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-21
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 and
property, physical environment, transportation, economic environment, mental and physical
health, culture and 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
organizations), 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.
The following describes each fund as presented in the fund financial statements.
MAJOR FUNDS
GOVERNMENTAL 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. The Community Development Block activities are accounted for within this fund,
which is federally funded.
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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-21
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 and
property, physical environment, transportation, economic environment, mental and physical
health, culture and 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
organizations), 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.
The following describes each fund as presented in the fund financial statements.
MAJOR FUNDS
GOVERNMENTAL 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. The Community Development Block activities are accounted for within this fund,
which is federally funded.
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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-22
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.
ENTERPRISE FUNDS
WATERWORKS UTILITY
The Waterworks Utility Fund accounts for all operation and capital improvement programs for
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.
NON-MAJOR 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.
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.
HOTEL/MOTEL TAX FUND
Accounts for monies collected through an increase of one percent 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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-22
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.
ENTERPRISE FUNDS
WATERWORKS UTILITY
The Waterworks Utility Fund accounts for all operation and capital improvement programs for
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.
NON-MAJOR 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.
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.
HOTEL/MOTEL TAX FUND
Accounts for monies collected through an increase of one percent 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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-23
1% FOR ART FUND
The City of Renton established this fund by contributing one percent 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.
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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-23
1% FOR ART FUND
The City of Renton established this fund by contributing one percent 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.
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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-24
AQUATIC CENTER FUND
Accounts for resources and expenditures related to the construction of the Henry Moses Family
Aquatic Center.
GENERAL GOVERNMENT CAPITAL IMPROVEMENT FUND
The General Government Capital Improvement Fund accounts for revenues and expenditures for
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.
SOUTH LAKE WASHINGTON INFRASTRUCTURE PROJECT FUND
The South Lake Washington Infrastructure Project Fund accounts for the infrastructure
improvements at the south end of Lake Washington. Primary resources include: REET, sales
tax, grants, and GO Bonds that will provide for the design, construction, labor wages and
benefits, and equipment required to implement the project.
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, computers, and auxiliary equipment except for fire apparatus and replacement of police
patrol vehicles. The fund also accounts for communication, data support, and printing services
provided to City employees. 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. The Insurance Fund pays expenses and rates are
charged to departments based on use and/or coverage requirements.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-24
AQUATIC CENTER FUND
Accounts for resources and expenditures related to the construction of the Henry Moses Family
Aquatic Center.
GENERAL GOVERNMENT CAPITAL IMPROVEMENT FUND
The General Government Capital Improvement Fund accounts for revenues and expenditures for
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.
SOUTH LAKE WASHINGTON INFRASTRUCTURE PROJECT FUND
The South Lake Washington Infrastructure Project Fund accounts for the infrastructure
improvements at the south end of Lake Washington. Primary resources include: REET, sales
tax, grants, and GO Bonds that will provide for the design, construction, labor wages and
benefits, and equipment required to implement the project.
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, computers, and auxiliary equipment except for fire apparatus and replacement of police
patrol vehicles. The fund also accounts for communication, data support, and printing services
provided to City employees. 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. The Insurance Fund pays expenses and rates are
charged to departments based on use and/or coverage requirements.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-25
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 firefighters 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 from 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 governmental 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
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-25
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 firefighters 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 from 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 governmental 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
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-26
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
1. Cash and Cash Equivalents
The City has defined cash and cash equivalents as cash on hand, demand deposits, and all highly
liquid investments (including restricted assets) with maturity of three months or less when
purchased. These amounts are classified on the balance sheet or in the statement of net assets as
cash and cash equivalents or investments in the various funds. 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.
2. Investments (refer to Note 3B.)
3. 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 to/from other funds” (i.e., the current portion
of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund
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).
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-26
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
1. Cash and Cash Equivalents
The City has defined cash and cash equivalents as cash on hand, demand deposits, and all highly
liquid investments (including restricted assets) with maturity of three months or less when
purchased. These amounts are classified on the balance sheet or in the statement of net assets as
cash and cash equivalents or investments in the various funds. 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.
2. Investments (refer to Note 3B.)
3. 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 to/from other funds” (i.e., the current portion
of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund
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).
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-27
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.
5. Capital Assets and Depreciation (refer to Note 5).
6. Deferred Revenues
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 other 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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-27
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.
5. Capital Assets and Depreciation (refer to Note 5).
6. Deferred Revenues
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 other 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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-28
Fund Reserved Purpose of Reservation Amount
General Fund Prepaid items $8,000
Municipal Facilities Advances to other funds 63,900
TOTAL $71,900
Fund Designated Purpose of Designation Amount
General Fund Operating cash reserves $5,761,257
Parks Fund Operating cash reserves 949,909
Parks Fund Special revenue funds 336,080
Municipal Facilities Capital project fund 15,394,113
Street Fund Operating cash reserves 734,828
Library Fund Operating cash reserves 206,201
TOTAL $23,382,388
10. Net Assets (refer to Note 11).
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
1. 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.
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.
3. 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 and 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 operating or non-operating.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-28
Fund Reserved Purpose of Reservation Amount
General Fund Prepaid items $8,000
Municipal Facilities Advances to other funds 63,900
TOTAL $71,900
Fund Designated Purpose of Designation Amount
General Fund Operating cash reserves $5,761,257
Parks Fund Operating cash reserves 949,909
Parks Fund Special revenue funds 336,080
Municipal Facilities Capital project fund 15,394,113
Street Fund Operating cash reserves 734,828
Library Fund Operating cash reserves 206,201
TOTAL $23,382,388
10. Net Assets (refer to Note 11).
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
1. 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.
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.
3. 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 and 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 operating or non-operating.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-29
5. 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.
A. PROCEDURES FOR ADOPTING THE ORIGINAL BUDGET
The City of Renton’s budget procedures are mandated by the Chapter 35A.33 of the Revised
Code of Washington (RCW). The steps in the budget process are as follows:
1. Prior to November 1, the Mayor submits a proposed budget to the City Council. This budget
is based on priorities established by the Council; estimates provided by the City departments
during the preceding months; balanced by revenue estimates made by the Mayor.
2. The City Council conducts public hearings on the proposed budget in November and
December.
3. The Council makes their adjustments to the proposed budget and adopts, by ordinance, a
final balanced budget no later than December 31.
4. The final operating budget, as adopted, is published and distributed within the first four
months of the following year.
B. AMENDING THE BUDGET
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 thirteen times during 2006.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-29
5. 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.
A. PROCEDURES FOR ADOPTING THE ORIGINAL BUDGET
The City of Renton’s budget procedures are mandated by the Chapter 35A.33 of the Revised
Code of Washington (RCW). The steps in the budget process are as follows:
1. Prior to November 1, the Mayor submits a proposed budget to the City Council. This budget
is based on priorities established by the Council; estimates provided by the City departments
during the preceding months; balanced by revenue estimates made by the Mayor.
2. The City Council conducts public hearings on the proposed budget in November and
December.
3. The Council makes their adjustments to the proposed budget and adopts, by ordinance, a
final balanced budget no later than December 31.
4. The final operating budget, as adopted, is published and distributed within the first four
months of the following year.
B. AMENDING THE BUDGET
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 thirteen times during 2006.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-30
Original budgeted inflows as compared to the final budgeted inflows are as follows:
Increase
Original Final (Decrease)
Budgeted Budgeted Budgeted
Fund Inflows Inflows Inflows
General Fund $50,358,513 $50,935,621 $577,108
Park Fund 11,260,376 11,299,136 38,760
Arterial Street Fund 440,000 440,000 0
Street Fund 6,738,878 6,763,878 25,000
Library Fund 1,809,862 1,809,862 0
Hotel/Motel Tax Fund 220,000 242,500 22,500
Paths and Trails Reserve Fund 0 0 0
1% for Art Fund 60,000 60,000 0
Cable Communications Development Fund 38,900 38,900 0
Park Memorial Fund 0 0 0
1997 LGO Bond Fund 986,253 986,253 0
1978 LGO Bond Fund 21,000 21,000 0
General Government Miscellaneous Debt Service Fund 1,799,400 1,799,400 0
1989 UGO Bond Redemption Fund 518,400 518,400 0
Special Assessment Debt Fund 9,500 0 (9,500)
Community Development Impact Mitigation Fund 255,000 255,000 0
Fire Impact Mitigation Fund 525,000 525,000 0
Transportation Impact Mitigation Fund 600,000 600,000 0
Leased City Properties Fund 904,902 904,902 0
Aquatic Center Fund 0 0 0
Municipal Facilities Construction Fund 2,100,000 2,100,000 0
General Government Capital Improvement Fund 16,597,600 17,552,990 955,390
South Lake Washington Infrastructure Project Fund 0 24,925,587 24,925,587
Airport Fund 1,921,817 1,921,817 0
Solid Waste Utility Fund 9,104,429 9,104,429 0
Golf Course Fund 2,421,880 2,421,880 0
Waterworks Utility Fund 38,014,220 41,594,146 3,579,926
Equipment Repair and Replacement Fund 3,201,900 3,201,900 0
Information Services Fund 3,431,550 3,833,550 402,000
Insurance Fund 3,007,503 3,007,503 0
Medical Insurance Fund 8,961,109 8,961,109 0
TOTAL $165,307,992 $195,824,763 $30,516,771
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-30
Original budgeted inflows as compared to the final budgeted inflows are as follows:
Increase
Original Final (Decrease)
Budgeted Budgeted Budgeted
Fund Inflows Inflows Inflows
General Fund $50,358,513 $50,935,621 $577,108
Park Fund 11,260,376 11,299,136 38,760
Arterial Street Fund 440,000 440,000 0
Street Fund 6,738,878 6,763,878 25,000
Library Fund 1,809,862 1,809,862 0
Hotel/Motel Tax Fund 220,000 242,500 22,500
Paths and Trails Reserve Fund 0 0 0
1% for Art Fund 60,000 60,000 0
Cable Communications Development Fund 38,900 38,900 0
Park Memorial Fund 0 0 0
1997 LGO Bond Fund 986,253 986,253 0
1978 LGO Bond Fund 21,000 21,000 0
General Government Miscellaneous Debt Service Fund 1,799,400 1,799,400 0
1989 UGO Bond Redemption Fund 518,400 518,400 0
Special Assessment Debt Fund 9,500 0 (9,500)
Community Development Impact Mitigation Fund 255,000 255,000 0
Fire Impact Mitigation Fund 525,000 525,000 0
Transportation Impact Mitigation Fund 600,000 600,000 0
Leased City Properties Fund 904,902 904,902 0
Aquatic Center Fund 0 0 0
Municipal Facilities Construction Fund 2,100,000 2,100,000 0
General Government Capital Improvement Fund 16,597,600 17,552,990 955,390
South Lake Washington Infrastructure Project Fund 0 24,925,587 24,925,587
Airport Fund 1,921,817 1,921,817 0
Solid Waste Utility Fund 9,104,429 9,104,429 0
Golf Course Fund 2,421,880 2,421,880 0
Waterworks Utility Fund 38,014,220 41,594,146 3,579,926
Equipment Repair and Replacement Fund 3,201,900 3,201,900 0
Information Services Fund 3,431,550 3,833,550 402,000
Insurance Fund 3,007,503 3,007,503 0
Medical Insurance Fund 8,961,109 8,961,109 0
TOTAL $165,307,992 $195,824,763 $30,516,771
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-31
Original budgeted outflows as compared to the final budgeted outflows are as follows:
Increase
Original Final (Decrease)
Budgeted Budgeted Budgeted
Fund Outflows Outflows Outflows
General Fund $50,323,513 $51,700,002 $1,376,489
Park Fund 11,260,376 11,433,136 172,760
Arterial Street Fund 440,000 440,000 0
Street Fund 6,738,878 6,791,878 53,000
Library Fund 1,809,862 1,821,929 12,067
Hotel/Motel Tax Fund 220,000 302,500 82,500
Paths and Trails Reserve Fund 0 0 0
1% for Art Fund 60,000 60,000 0
Cable Communications Development Fund 143,900 143,900 0
Park Memorial Fund 0 0 0
1997 LGO Bond Fund 990,300 990,300 0
1978 LGO Bond Fund 21,500 21,500 0
General Government Miscellaneous Debt Service Fund 1,800,800 1,800,800 0
1989 UGO Bond Redemption Fund 518,400 518,400 0
Special Assessment Debt Fund 32,025 68,000 35,975
Community Development Impact Mitigation Fund 0 0 0
Fire Impact Mitigation Fund 525,000 525,000 0
Transportation Impact Mitigation Fund 1,984,800 1,984,800 0
Leased City Properties Fund 896,432 939,248 42,816
Aquatic Center Fund 0 0 0
Municipal Facilities Construction Fund 3,177,000 5,621,096 2,444,096
General Government Capital Improvement Fund 18,283,700 22,093,600 3,809,900
South Lake Washington Infrastructure Project Fund 0 24,925,587 24,925,587
Airport Fund 2,416,800 2,654,043 237,243
Solid Waste Utility Fund 9,510,248 9,670,248 160,000
Golf Course Fund 2,421,880 2,441,880 20,000
Waterworks Utility Fund 39,027,041 47,824,239 8,797,198
Equipment Repair and Replacement Fund 3,255,110 3,255,110 0
Information Services Fund 3,431,550 3,690,550 259,000
Insurance Fund 2,986,001 4,386,001 1,400,000
Medical Insurance Fund 8,773,034 8,773,034 0
TOTAL $171,048,150 $214,876,781 $43,828,631
NOTE 3. DEPOSITS AND INVESTMENTS
A. Deposits
The City’s deposits and certificates of deposit are insured by the Federal Depository Insurance
Corporation (FDIC) and the State of Washington Public Deposit Protection Commission
(WPDPC) Act of 1969.
B. Investments
The City invests excess and inactive funds in accordance with the City’s Investment Policy
(updated and approved on June 5, 2006), which complies with the guidelines within Chapter
35A.40.050 RCW allows for investment of excess cash and inactive cash, directs that the
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-31
Original budgeted outflows as compared to the final budgeted outflows are as follows:
Increase
Original Final (Decrease)
Budgeted Budgeted Budgeted
Fund Outflows Outflows Outflows
General Fund $50,323,513 $51,700,002 $1,376,489
Park Fund 11,260,376 11,433,136 172,760
Arterial Street Fund 440,000 440,000 0
Street Fund 6,738,878 6,791,878 53,000
Library Fund 1,809,862 1,821,929 12,067
Hotel/Motel Tax Fund 220,000 302,500 82,500
Paths and Trails Reserve Fund 0 0 0
1% for Art Fund 60,000 60,000 0
Cable Communications Development Fund 143,900 143,900 0
Park Memorial Fund 0 0 0
1997 LGO Bond Fund 990,300 990,300 0
1978 LGO Bond Fund 21,500 21,500 0
General Government Miscellaneous Debt Service Fund 1,800,800 1,800,800 0
1989 UGO Bond Redemption Fund 518,400 518,400 0
Special Assessment Debt Fund 32,025 68,000 35,975
Community Development Impact Mitigation Fund 0 0 0
Fire Impact Mitigation Fund 525,000 525,000 0
Transportation Impact Mitigation Fund 1,984,800 1,984,800 0
Leased City Properties Fund 896,432 939,248 42,816
Aquatic Center Fund 0 0 0
Municipal Facilities Construction Fund 3,177,000 5,621,096 2,444,096
General Government Capital Improvement Fund 18,283,700 22,093,600 3,809,900
South Lake Washington Infrastructure Project Fund 0 24,925,587 24,925,587
Airport Fund 2,416,800 2,654,043 237,243
Solid Waste Utility Fund 9,510,248 9,670,248 160,000
Golf Course Fund 2,421,880 2,441,880 20,000
Waterworks Utility Fund 39,027,041 47,824,239 8,797,198
Equipment Repair and Replacement Fund 3,255,110 3,255,110 0
Information Services Fund 3,431,550 3,690,550 259,000
Insurance Fund 2,986,001 4,386,001 1,400,000
Medical Insurance Fund 8,773,034 8,773,034 0
TOTAL $171,048,150 $214,876,781 $43,828,631
NOTE 3. DEPOSITS AND INVESTMENTS
A. Deposits
The City’s deposits and certificates of deposit are insured by the Federal Depository Insurance
Corporation (FDIC) and the State of Washington Public Deposit Protection Commission
(WPDPC) Act of 1969.
B. Investments
The City invests excess and inactive funds in accordance with the City’s Investment Policy
(updated and approved on June 5, 2006), which complies with the guidelines within Chapter
35A.40.050 RCW allows for investment of excess cash and inactive cash, directs that the
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-32
responsibility for determining available cash for investment is placed upon the department
administering the funds, and allows for pooling of the cash provided that the allocation of
income is proportionate to the investment of each fund.
Currently, the City invests in obligations of the U.S. Government, U.S. agency issues,
Certificates of Deposit with Washington State banks and savings and loan institutions, the State
of Washington Local Government Investment Pool (LGIP), and general obligations of
Washington State municipalities.
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. 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. Rule 2a7
allows SEC-registered mutual funds to use amortized cost rather than market value to
report net assets and compute share prices.
Investments are shown on the entity-wide Statement of Net Assets at fair value or for 2a7-like
pools at amortized cost, which approximates fair value. Investments are reported within Cash
and Investments of Governmental Activities and within Cash and Cash Equivalents or
Investments of Business-type Activities.
C. Deposit and Investment Schedule
As of December 31, 2006, the City of Renton had the following investments:
Security Type Cost Fair Value
Weighted Average
Maturity (in years)
US Agencies $2,845,807 $2,823,773 3.364
Certificates of Deposit (within WPDPC) 39,000,000 39,000,000 1.140
Local Governmental Investment Pool (LGIP) 32,130,605 32,130,605 0.003
Municipal Investor Account (MIA) 10,030,148 10,030,148 0.003
TOTAL $84,006,560 $83,984,526 0.644
Credit risk. Credit Risk is the risk that an issuer or other counter party to an investment will not
fulfill its obligations. All Agency securities in the City’s portfolio are rated “Aaa” by Moody’s
Investors Service and “AAA” by Standard & Poor – each rating is the highest possible.
Certificates of Deposit are insured by the FDIC up to $100,000 and, additionally, by collateral
held in a multiple financial institution collateral pool administered by the Washington Public
Deposit Protection Commission (WPDPC). The Washington State Local Government
Investment Pool (LGIP) is a 2a7-like-pool and is operated in a manner consistent with the SEC’s
Rule 2a7 of the Investment Company Act of 1940.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-32
responsibility for determining available cash for investment is placed upon the department
administering the funds, and allows for pooling of the cash provided that the allocation of
income is proportionate to the investment of each fund.
Currently, the City invests in obligations of the U.S. Government, U.S. agency issues,
Certificates of Deposit with Washington State banks and savings and loan institutions, the State
of Washington Local Government Investment Pool (LGIP), and general obligations of
Washington State municipalities.
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. 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. Rule 2a7
allows SEC-registered mutual funds to use amortized cost rather than market value to
report net assets and compute share prices.
Investments are shown on the entity-wide Statement of Net Assets at fair value or for 2a7-like
pools at amortized cost, which approximates fair value. Investments are reported within Cash
and Investments of Governmental Activities and within Cash and Cash Equivalents or
Investments of Business-type Activities.
C. Deposit and Investment Schedule
As of December 31, 2006, the City of Renton had the following investments:
Security Type Cost Fair Value
Weighted Average
Maturity (in years)
US Agencies $2,845,807 $2,823,773 3.364
Certificates of Deposit (within WPDPC) 39,000,000 39,000,000 1.140
Local Governmental Investment Pool (LGIP) 32,130,605 32,130,605 0.003
Municipal Investor Account (MIA) 10,030,148 10,030,148 0.003
TOTAL $84,006,560 $83,984,526 0.644
Credit risk. Credit Risk is the risk that an issuer or other counter party to an investment will not
fulfill its obligations. All Agency securities in the City’s portfolio are rated “Aaa” by Moody’s
Investors Service and “AAA” by Standard & Poor – each rating is the highest possible.
Certificates of Deposit are insured by the FDIC up to $100,000 and, additionally, by collateral
held in a multiple financial institution collateral pool administered by the Washington Public
Deposit Protection Commission (WPDPC). The Washington State Local Government
Investment Pool (LGIP) is a 2a7-like-pool and is operated in a manner consistent with the SEC’s
Rule 2a7 of the Investment Company Act of 1940.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-33
Security Type Cost Fair Value Moody's S&P
Federal National Mortgage Association $2,845,807 $2,823,773 Aaa AAA
Certificates of Deposit (within WPDPC) 39,000,000 39,000,000 unrated unrated
Local Governmental Investment Pool (LGIP) 32,130,605 32,130,605 unrated unrated
Municipal Investor Account (MIA) 10,030,148 10,030,148 unrated unrated
TOTAL $84,006,560 $83,984,526
The City’s Investment Policy directs that the standard of prudence for investment activities shall
be the Prudent Investor Standard that states: “Investments shall be made with judgment and
care, under circumstances then prevailing, which person of prudence, discretion, and intelligence
would use in the management of their own affairs, not for speculation, but for investment
purposes, considering the probable safety of their capital as well as the probable income to be
derived.”
Custodial credit risk. Custodial credit risk for investments is the risk that, in the event of the
failure of the counter party to a transaction, a government will not be able to recover the value
of investment or collateral securities that are in the possession of an outside party. All security
transactions, including collateral for repurchase agreements, entered into by the City are
conducted on a delivery-versus-payment (DVP) basis. Securities held by a third-party custodian
are designated by the City’s Finance and Information Services Administrator. Certificates of
Deposit are delivered to and held by the Finance Division.
Concentration of credit risk. Concentration of credit risk is the risk of loss attributed to the
magnitude of a government’s investment in a single issuer. The City diversifies its investment
instruments to avoid incurring unreasonable risk inherent in over-investing in instruments and
issuers as follows:
Maximum’s per Policy
Instrument
Maximum
Issuer
Maximum
U.S. Treasuries 100% 100%
U.S. Agencies 75% 50%
Certificates of Deposit (within WPDPC) 50% 25%
Local Governmental Investment Pool (LGIP) 50% 50%
Commercial Paper 25% 5%
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates over time, adversely
affecting the fair value of an investment. The City’s portfolio is managed within the parameters
established by the Investment Policy, which limits the weighted average maturity of the portfolio
to five years.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-33
Security Type Cost Fair Value Moody's S&P
Federal National Mortgage Association $2,845,807 $2,823,773 Aaa AAA
Certificates of Deposit (within WPDPC) 39,000,000 39,000,000 unrated unrated
Local Governmental Investment Pool (LGIP) 32,130,605 32,130,605 unrated unrated
Municipal Investor Account (MIA) 10,030,148 10,030,148 unrated unrated
TOTAL $84,006,560 $83,984,526
The City’s Investment Policy directs that the standard of prudence for investment activities shall
be the Prudent Investor Standard that states: “Investments shall be made with judgment and
care, under circumstances then prevailing, which person of prudence, discretion, and intelligence
would use in the management of their own affairs, not for speculation, but for investment
purposes, considering the probable safety of their capital as well as the probable income to be
derived.”
Custodial credit risk. Custodial credit risk for investments is the risk that, in the event of the
failure of the counter party to a transaction, a government will not be able to recover the value
of investment or collateral securities that are in the possession of an outside party. All security
transactions, including collateral for repurchase agreements, entered into by the City are
conducted on a delivery-versus-payment (DVP) basis. Securities held by a third-party custodian
are designated by the City’s Finance and Information Services Administrator. Certificates of
Deposit are delivered to and held by the Finance Division.
Concentration of credit risk. Concentration of credit risk is the risk of loss attributed to the
magnitude of a government’s investment in a single issuer. The City diversifies its investment
instruments to avoid incurring unreasonable risk inherent in over-investing in instruments and
issuers as follows:
Maximum’s per Policy
Instrument
Maximum
Issuer
Maximum
U.S. Treasuries 100% 100%
U.S. Agencies 75% 50%
Certificates of Deposit (within WPDPC) 50% 25%
Local Governmental Investment Pool (LGIP) 50% 50%
Commercial Paper 25% 5%
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates over time, adversely
affecting the fair value of an investment. The City’s portfolio is managed within the parameters
established by the Investment Policy, which limits the weighted average maturity of the portfolio
to five years.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-34
Security Type
0-6
months
6 months –
1 year
1-3
years
3+
years Totals
US Agencies $0 $0 $0 $2,823,773 $2,823,773
Certificates of Deposit (within WPDPC) 0 31,000,000 8,000,000 0 39,000,000
Local Governmental Investment Pool
(LGIP) 32,130,605 0 0 0 32,130,605
Municipal Investor Account (MIA) 10,030,148 0 0 0 10,030,148
TOTAL $42,160,753 $31,000,000 $8,000,000 $2,823,773 $83,984,527
NOTE 4. PROPERTY TAXES
The King County Finance Director acts as an agent to collect property taxes levied in the county
for all taxing authorities. Taxes are levied annually, January 1, on property value listed as of the
prior August 31. Assessed values are established by the King County Assessor at 100 percent of
fair market value. A revaluation of all property is required every two years; however, King
County has the ability to revalue annually.
Property taxes levied by the King County Assessor and collected by the King County Finance
Director become a lien on the first day of the levy year and may be paid in two equal
installments if the total amount exceeds $30. The first half of real property taxes is due on April
30 and the balance is due October 31. Delinquent taxes bear interest at the rate of 12 percent and
are subject to additional penalties if not paid as scheduled. No allowance for uncollectible taxes
is established because delinquent taxes are considered fully collectible.
At year-end, property taxes are recorded as a receivable with the portion not expected to be
collected within 60 days offset by deferred revenue. During the year, property tax revenues are
recognized when cash is received.
The tax rate for general City operations is limited to $3.375 per $1,000 of assessed value (RCW
84.52.043). Of this amount, up to .45 cents per thousand dollars may be designated for
contribution to the Firemen’s Pension Fund. If a report by a qualified actuary on the condition of
the Firemen’s Pension Fund establishes that this amount (or portion of) is not necessary to
maintain the actuarial soundness of the fund, the amount can be used for any other municipal
purpose (RCW 41.16.060).
The tax rate limit may be reduced for any of the following reasons:
1. The Levy Limit: the levy limit calculation applies to a taxing district’s budget, and not to
increases in the assessed value or tax bill of individual properties. Initiative 747 restricts
individual taxing districts from collecting, in any year, more than a one percent increase in
their regular, non-voted, levy over the highest levy amount since 1985. 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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-34
Security Type
0-6
months
6 months –
1 year
1-3
years
3+
years Totals
US Agencies $0 $0 $0 $2,823,773 $2,823,773
Certificates of Deposit (within WPDPC) 0 31,000,000 8,000,000 0 39,000,000
Local Governmental Investment Pool
(LGIP) 32,130,605 0 0 0 32,130,605
Municipal Investor Account (MIA) 10,030,148 0 0 0 10,030,148
TOTAL $42,160,753 $31,000,000 $8,000,000 $2,823,773 $83,984,527
NOTE 4. PROPERTY TAXES
The King County Finance Director acts as an agent to collect property taxes levied in the county
for all taxing authorities. Taxes are levied annually, January 1, on property value listed as of the
prior August 31. Assessed values are established by the King County Assessor at 100 percent of
fair market value. A revaluation of all property is required every two years; however, King
County has the ability to revalue annually.
Property taxes levied by the King County Assessor and collected by the King County Finance
Director become a lien on the first day of the levy year and may be paid in two equal
installments if the total amount exceeds $30. The first half of real property taxes is due on April
30 and the balance is due October 31. Delinquent taxes bear interest at the rate of 12 percent and
are subject to additional penalties if not paid as scheduled. No allowance for uncollectible taxes
is established because delinquent taxes are considered fully collectible.
At year-end, property taxes are recorded as a receivable with the portion not expected to be
collected within 60 days offset by deferred revenue. During the year, property tax revenues are
recognized when cash is received.
The tax rate for general City operations is limited to $3.375 per $1,000 of assessed value (RCW
84.52.043). Of this amount, up to .45 cents per thousand dollars may be designated for
contribution to the Firemen’s Pension Fund. If a report by a qualified actuary on the condition of
the Firemen’s Pension Fund establishes that this amount (or portion of) is not necessary to
maintain the actuarial soundness of the fund, the amount can be used for any other municipal
purpose (RCW 41.16.060).
The tax rate limit may be reduced for any of the following reasons:
1. The Levy Limit: the levy limit calculation applies to a taxing district’s budget, and not to
increases in the assessed value or tax bill of individual properties. Initiative 747 restricts
individual taxing districts from collecting, in any year, more than a one percent increase in
their regular, non-voted, levy over the highest levy amount since 1985. 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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-35
2. The One Percent Constitution Limit: The Washington State Constitution limits the regular
(non-voted) combined property tax rate applied to an individual’s property to one percent
($10 per $1,000) on the market valuation. Voters may approve special levies that are added
to this figure. If the taxes of all districts exceed this amount, each is proportionately reduced
until the total is at or below the one percent limit.
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations. The City’s regular
levy for 2006 is $3.04482 and the excess levy for General Obligation Bond debt is $.07088 for a
total of $3.1157, per the King County Assessor’s 2006 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.
C. PROPRIETARY FUND CAPITAL ASSETS
Capital assets of proprietary funds are capitalized in their respective statement of net assets, net
of depreciation.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-35
2. The One Percent Constitution Limit: The Washington State Constitution limits the regular
(non-voted) combined property tax rate applied to an individual’s property to one percent
($10 per $1,000) on the market valuation. Voters may approve special levies that are added
to this figure. If the taxes of all districts exceed this amount, each is proportionately reduced
until the total is at or below the one percent limit.
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations. The City’s regular
levy for 2006 is $3.04482 and the excess levy for General Obligation Bond debt is $.07088 for a
total of $3.1157, per the King County Assessor’s 2006 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.
C. PROPRIETARY FUND CAPITAL ASSETS
Capital assets of proprietary funds are capitalized in their respective statement of net assets, net
of depreciation.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-36
D. DEPRECIATION
Depreciation on all depreciable assets is provided on the straight-line basis over the following
useful lives:
Type of Asset
Estimated
Service Life
Buildings and structures, except utility plant 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:
Governmental Activities Amount
General government $3,329,655
Judicial 0
Security of persons and property 647,608
Physical environment 15,652
Transportation 2,075,736
Economic development 293,107
Culture and recreation 1,256,455
Health and human services 54,598
TOTAL Governmental Activities Depreciation Expense $7,672,811
Business-type Activities Amount
Waterworks $5,462,690
Airport 381,043
Solid waste 3,939
Golf course 267,552
TOTAL Business-type Activities Depreciation Expense $6,115,224
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-36
D. DEPRECIATION
Depreciation on all depreciable assets is provided on the straight-line basis over the following
useful lives:
Type of Asset
Estimated
Service Life
Buildings and structures, except utility plant 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:
Governmental Activities Amount
General government $3,329,655
Judicial 0
Security of persons and property 647,608
Physical environment 15,652
Transportation 2,075,736
Economic development 293,107
Culture and recreation 1,256,455
Health and human services 54,598
TOTAL Governmental Activities Depreciation Expense $7,672,811
Business-type Activities Amount
Waterworks $5,462,690
Airport 381,043
Solid waste 3,939
Golf course 267,552
TOTAL Business-type Activities Depreciation Expense $6,115,224
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-37
E. SUMMARY OF CHANGES
Description
Beginning
Balance
Increases
Decreases
Ending
Balance
GOVERNMENTAL ACTIVITIES
Capital assets not being depreciated:
Land and land improvements $81,997,215 $3,938,992 $0 $85,936,207
Construction in progress 15,819,455 14,496,673 5,944,345 24,371,783
TOTAL capital not being depreciated $97,816,670 $18,435,665 $5,944,345 $110,307,990
Other capital assets:
Buildings and structures $73,605,992 $17,772 $0 $73,623,764
Other improvements 102,371,218 9,673,029 0 112,044,247
Machinery and equipment 23,955,401 4,750,082 1,941,785 26,763,698
TOTAL other capital assets at capitalized cost $199,932,611 $14,440,883 $1,941,785 $212,431,709
Less accumulated depreciation for:
Buildings and structures $18,163,965 $1,915,583 $0 $20,079,548
Other improvements 31,929,633 2,867,033 0 34,796,666
Machinery and equipment 13,342,727 2,890,195 1,735,646 14,497,276
TOTAL accumulated depreciation $63,436,325 $7,672,811 $1,735,646 $69,373,490
Governmental activities capital assets, net of
depreciation
$234,312,956 $25,203,737 $6,150,484 $253,366,209
BUSINESS-TYPE ACTIVITIES
Capital assets not being depreciated:
Land and land improvements $6,976,321 $0 $0 $6,976,321
Construction in progress 2,512,285 2,860,487 1,246,657 4,126,115
TOTAL capital assets not being depreciated $9,488,606 $2,860,487 $1,246,657 $11,102,436
Other capital assets
Buildings and structures $15,032,621 $0 $0 $15,032,621
Other improvements 259,558,408 10,220,868 31,237 269,748,039
Machinery and equipment 5,729,498 134,965 0 5,864,463
TOTAL other capital assets at capitalized cost $280,320,527 $10,355,833 $31,237 $290,645,123
Less accumulated depreciation for:
Buildings and structures $3,565,120 $335,959 $4 $3,901,075
Other improvements 62,283,413 5,624,327 31,237 67,876,503
Machinery and equipment 4,753,074 154,938 0 4,908,012
TOTAL accumulated depreciation $70,601,607 $6,115,224 $31,241 $76,685,590
Business-type capital assets, net of depreciation $219,207,526 $7,101,096 $1,246,653 $225,061,969
At the end of 2006, 65 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, 2006, are as follows:
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-37
E. SUMMARY OF CHANGES
Description
Beginning
Balance
Increases
Decreases
Ending
Balance
GOVERNMENTAL ACTIVITIES
Capital assets not being depreciated:
Land and land improvements $81,997,215 $3,938,992 $0 $85,936,207
Construction in progress 15,819,455 14,496,673 5,944,345 24,371,783
TOTAL capital not being depreciated $97,816,670 $18,435,665 $5,944,345 $110,307,990
Other capital assets:
Buildings and structures $73,605,992 $17,772 $0 $73,623,764
Other improvements 102,371,218 9,673,029 0 112,044,247
Machinery and equipment 23,955,401 4,750,082 1,941,785 26,763,698
TOTAL other capital assets at capitalized cost $199,932,611 $14,440,883 $1,941,785 $212,431,709
Less accumulated depreciation for:
Buildings and structures $18,163,965 $1,915,583 $0 $20,079,548
Other improvements 31,929,633 2,867,033 0 34,796,666
Machinery and equipment 13,342,727 2,890,195 1,735,646 14,497,276
TOTAL accumulated depreciation $63,436,325 $7,672,811 $1,735,646 $69,373,490
Governmental activities capital assets, net of
depreciation
$234,312,956 $25,203,737 $6,150,484 $253,366,209
BUSINESS-TYPE ACTIVITIES
Capital assets not being depreciated:
Land and land improvements $6,976,321 $0 $0 $6,976,321
Construction in progress 2,512,285 2,860,487 1,246,657 4,126,115
TOTAL capital assets not being depreciated $9,488,606 $2,860,487 $1,246,657 $11,102,436
Other capital assets
Buildings and structures $15,032,621 $0 $0 $15,032,621
Other improvements 259,558,408 10,220,868 31,237 269,748,039
Machinery and equipment 5,729,498 134,965 0 5,864,463
TOTAL other capital assets at capitalized cost $280,320,527 $10,355,833 $31,237 $290,645,123
Less accumulated depreciation for:
Buildings and structures $3,565,120 $335,959 $4 $3,901,075
Other improvements 62,283,413 5,624,327 31,237 67,876,503
Machinery and equipment 4,753,074 154,938 0 4,908,012
TOTAL accumulated depreciation $70,601,607 $6,115,224 $31,241 $76,685,590
Business-type capital assets, net of depreciation $219,207,526 $7,101,096 $1,246,653 $225,061,969
At the end of 2006, 65 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, 2006, are as follows:
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-38
Fund – Funding Source
Cost to
Date
Estimated
Remaining
Cost
Estimated
Total Cost
Future
Funding
Required
Waterworks – charges for services $3,073,672 $58,340,000 $61,413,672 None
Airport – charges for services 1,052,443 7,215,000 8,267,443 None
General governmental – taxes, charges for
services, grants
24,371,783 179,348,000 203,719,783 None
Golf course – charges for services 1,300,000 1,300,000 None
NOTE 6. PENSIONS
With the exception of firefighters employed prior to March 1, 1970, substantially all City’s 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, PO Box 48380, Olympia, WA 98504-8380.
The City is the administrator of the Firefighter Pension Plan for all firefighters employed prior to
March 1, 1970. The Firefighter Pension Plan is included within the City of Renton’s statements
as a pension trust fund. There is no separate GAAP-based audited report. A schedule of
employer contributions for six years, prepared by Milliman, Consultants and Actuaries, is
included in the Required Supplemental Information section. Additional information from the
actuarial report prepared for the Firefighter Pension Plan, by Milliman, Consultants and
Actuaries, may be obtained by contacting the City of Renton, Finance Division, 1055 South
Grady Way, Renton, WA 98057.
The following disclosures are made pursuant to GASB Statement No. 25, Financial Reporting
for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans and
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 defined benefit
plan with a defined contribution component. 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 participating in national
higher education retirement programs; judges of district and municipal courts; and employees of
local governments. PERS participants, who joined the PERS system by September 30, 1977, are
Plan 1 members. Those who joined on or after October 1, 1977; and by either, February 28,
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-38
Fund – Funding Source
Cost to
Date
Estimated
Remaining
Cost
Estimated
Total Cost
Future
Funding
Required
Waterworks – charges for services $3,073,672 $58,340,000 $61,413,672 None
Airport – charges for services 1,052,443 7,215,000 8,267,443 None
General governmental – taxes, charges for
services, grants
24,371,783 179,348,000 203,719,783 None
Golf course – charges for services 1,300,000 1,300,000 None
NOTE 6. PENSIONS
With the exception of firefighters employed prior to March 1, 1970, substantially all City’s 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, PO Box 48380, Olympia, WA 98504-8380.
The City is the administrator of the Firefighter Pension Plan for all firefighters employed prior to
March 1, 1970. The Firefighter Pension Plan is included within the City of Renton’s statements
as a pension trust fund. There is no separate GAAP-based audited report. A schedule of
employer contributions for six years, prepared by Milliman, Consultants and Actuaries, is
included in the Required Supplemental Information section. Additional information from the
actuarial report prepared for the Firefighter Pension Plan, by Milliman, Consultants and
Actuaries, may be obtained by contacting the City of Renton, Finance Division, 1055 South
Grady Way, Renton, WA 98057.
The following disclosures are made pursuant to GASB Statement No. 25, Financial Reporting
for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans and
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 defined benefit
plan with a defined contribution component. 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 participating in national
higher education retirement programs; judges of district and municipal courts; and employees of
local governments. PERS participants, who joined the PERS system by September 30, 1977, are
Plan 1 members. Those who joined on or after October 1, 1977; and by either, February 28,
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-39
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.
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 benefit 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. Effective June 7, 2006, Plan 3 members are vested in the
defined benefit portion of their plan after ten years of service; or after five years if twelve months
that were earned after age 44; or after five service credit years earned in PERS 2 prior to June 1,
2003. Plan 3 members are immediately vested in the defined contribution portion of their plan.
Vested Plan 3 members are eligible to retire with full benefits at age 65, or at age 55 with 10
years of service. 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. The benefit is also actuarially reduced to reflect the choice of a
survivor option. 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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-39
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.
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 benefit 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. Effective June 7, 2006, Plan 3 members are vested in the
defined benefit portion of their plan after ten years of service; or after five years if twelve months
that were earned after age 44; or after five service credit years earned in PERS 2 prior to June 1,
2003. Plan 3 members are immediately vested in the defined contribution portion of their plan.
Vested Plan 3 members are eligible to retire with full benefits at age 65, or at age 55 with 10
years of service. 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. The benefit is also actuarially reduced to reflect the choice of a
survivor option. 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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-40
There are 1,181 participating employers in PERS. Membership in PERS consisted of the
following as of the latest actuarial valuation date for the plans of September 30, 2005:
Retirees and beneficiaries receiving benefits 68,609
Terminated plan members entitled to but not yet receiving benefits 22,567
Active plan members vested 104,574
Active plan members non-vested 51,004
TOTAL 246,754
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 agencies
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.
Under PERS 3, employer contributions finance the defined benefit portion of the plan, and
member contributions finance the defined contribution portion. The Employee Retirement
Benefits Board sets Plan 3 employee contribution rates. Six rate options are available ranging
from 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.
The required contribution rates expressed as a percentage of current-year covered payroll, as of
December 31, 2006, were as follows:
Contributor PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer* 3.69 %** 3.69% 3.69%****
Employee 6.00%*** 3.50% *****
* The employer rates include the employer administration
expense fee currently at .18%.
** The employer rate for state elected officials is 5.44%.
*** The employee rate for state elected officials is 7.50%.
**** 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 1 PERS Plan 2 PERS Plan 3
2006 $50,609 $616,903 $92,216
2005 33,340 367,240 51,521
2004 25,977 252,464 35,737
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-40
There are 1,181 participating employers in PERS. Membership in PERS consisted of the
following as of the latest actuarial valuation date for the plans of September 30, 2005:
Retirees and beneficiaries receiving benefits 68,609
Terminated plan members entitled to but not yet receiving benefits 22,567
Active plan members vested 104,574
Active plan members non-vested 51,004
TOTAL 246,754
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 agencies
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.
Under PERS 3, employer contributions finance the defined benefit portion of the plan, and
member contributions finance the defined contribution portion. The Employee Retirement
Benefits Board sets Plan 3 employee contribution rates. Six rate options are available ranging
from 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.
The required contribution rates expressed as a percentage of current-year covered payroll, as of
December 31, 2006, were as follows:
Contributor PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer* 3.69 %** 3.69% 3.69%****
Employee 6.00%*** 3.50% *****
* The employer rates include the employer administration
expense fee currently at .18%.
** The employer rate for state elected officials is 5.44%.
*** The employee rate for state elected officials is 7.50%.
**** 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 1 PERS Plan 2 PERS Plan 3
2006 $50,609 $616,903 $92,216
2005 33,340 367,240 51,521
2004 25,977 252,464 35,737
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-41
Law Enforcement Officers’ and Firefighters’ Retirement System (LEOFF) Plans 1 and 2
Plan Description
LEOFF is a cost-sharing multiple-employer retirement system comprised of two separate defined
benefit plans. 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. Membership in
the system includes all full-time, fully compensated; local law enforcement officers and
firefighters. LEOFF membership is comprised primarily of non-state employees, with the
exception of the Department of Fish and Wildlife enforcement officers, who were first included
prospectively effective July 27, 2003, being an exception. In addition, effective July 24, 2005,
current members of PERS who are emergency medical technicians can elect to become members
of LEOFF Plan 2. Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established
to provide governance of LEOFF Plan 2. The Board’s duties include adopting contribution rates
and recommending policy changes to the Legislature for the LEOFF Plan 2 retirement plan.
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 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 Service
Percent of Final
Average Salary
20 or more years 2.0%
10 but less than 20 years 1.5%
5 but less than 10 years 1.0%
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.)
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 and to
reflect the choice of a survivor option. 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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-41
Law Enforcement Officers’ and Firefighters’ Retirement System (LEOFF) Plans 1 and 2
Plan Description
LEOFF is a cost-sharing multiple-employer retirement system comprised of two separate defined
benefit plans. 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. Membership in
the system includes all full-time, fully compensated; local law enforcement officers and
firefighters. LEOFF membership is comprised primarily of non-state employees, with the
exception of the Department of Fish and Wildlife enforcement officers, who were first included
prospectively effective July 27, 2003, being an exception. In addition, effective July 24, 2005,
current members of PERS who are emergency medical technicians can elect to become members
of LEOFF Plan 2. Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established
to provide governance of LEOFF Plan 2. The Board’s duties include adopting contribution rates
and recommending policy changes to the Legislature for the LEOFF Plan 2 retirement plan.
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 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 Service
Percent of Final
Average Salary
20 or more years 2.0%
10 but less than 20 years 1.5%
5 but less than 10 years 1.0%
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.)
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 and to
reflect the choice of a survivor option. 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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-42
There are 376 participating employers in LEOFF. Membership in LEOFF consisted of the
following as of the latest actuarial valuation date for the plans of September 30, 2005:
Retirees and beneficiaries receiving benefits 8,723
Terminated plan members entitled to but not yet receiving benefits 577
Active plan members vested 12,348
Active plan members non-vested 3,543
TOTAL 25,191
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 LEOFF Plan 2 Retirement Board in accordance with Chapter
41.45 RCW. All employers are required to contribute at the level required by state law. The
Legislature has the ability, by means of a special funding arrangement, to appropriated money
from the state General Fund to supplement the current service liability and fund the prior service
cost of Plan 1 and 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 in statute.
The required contribution rates expressed as a percentage of current-year covered payroll, as of
December 31, 2006, were as follows:
Contributor LEOFF Plan 1 LEOFF Plan 2
Employer* .18% 4.90%**
Employee .00% 7.85%
State N/A 3.13%
* The employer rates include the employer
administration expense fee currently at .18%.
** The employer rate for ports and universities is 8.03%.
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 1 LEOFF Plan 2
2006 $2,050 $716,583
2005 2,554 549,001
2004 3,128 433,463
Firefighter’s Pension
Plan Description
The Firefighter’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 firefighters employed prior to
March 1, 1970, when the LEOFF retirement system was established. The retirement benefits
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-42
There are 376 participating employers in LEOFF. Membership in LEOFF consisted of the
following as of the latest actuarial valuation date for the plans of September 30, 2005:
Retirees and beneficiaries receiving benefits 8,723
Terminated plan members entitled to but not yet receiving benefits 577
Active plan members vested 12,348
Active plan members non-vested 3,543
TOTAL 25,191
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 LEOFF Plan 2 Retirement Board in accordance with Chapter
41.45 RCW. All employers are required to contribute at the level required by state law. The
Legislature has the ability, by means of a special funding arrangement, to appropriated money
from the state General Fund to supplement the current service liability and fund the prior service
cost of Plan 1 and 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 in statute.
The required contribution rates expressed as a percentage of current-year covered payroll, as of
December 31, 2006, were as follows:
Contributor LEOFF Plan 1 LEOFF Plan 2
Employer* .18% 4.90%**
Employee .00% 7.85%
State N/A 3.13%
* The employer rates include the employer
administration expense fee currently at .18%.
** The employer rate for ports and universities is 8.03%.
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 1 LEOFF Plan 2
2006 $2,050 $716,583
2005 2,554 549,001
2004 3,128 433,463
Firefighter’s Pension
Plan Description
The Firefighter’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 firefighters employed prior to
March 1, 1970, when the LEOFF retirement system was established. The retirement benefits
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-43
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, 2006, there were 42
members in the System:
Retirees and beneficiaries receiving benefits 38
Retirees and beneficiaries currently receiving full retirement through LEOFF 4
Active plan members vested 0
Active plan members non-vested 0
TOTAL 42
Funding Policy
Under state law, the Firefighter’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 Firefighter’s Pension Plan are paid by the Plan.
For 2006, this cost was $7,216.
An actuarial valuation is done every two years and was completed as of January 1, 2007. The
Actuarial Valuation of Firefighters’ Pension Fund table is reported in the Required Supplemental
Information section, and a recap of the Schedule of Funding Progress for the last five valuations
is as follows:
Valuation
Date
January 1
Actuarial
Value of
Assets
(rounded
to
thousands)
Actuarial
Accrued
Liabilities
Entry Age
(rounded to
thousands)
Unfunded
Actuarial
Accrued
Liabilities
(UAAL)
(rounded
to
Funded
Ratio
Covered
Payroll
(rounded
to
thousands)
UAAL
as
a % of
Covered
Payroll
1997 $5,238 $6,444 $1,206 81% $260 464%
2001 7,067 6,780 (287) 104% 0 -
2003 9,189 6,472 (2,717) 142% 0 -
2005 7,777 6,254 *(1,523) 124% 0 -
2007 7,847 6,364 (1,483) 123% 0 -
* A $29 decrease in the actuarial accrued liabilities was made after the City’s financial report was published and
before the valuation was released.
Significant actuarial assumptions used in the January 1, 2007, valuation include:
Valuation date: January 1, 2007
Actuarial cost method: entry age normal
Amortization method: 30-year, closed as of January 1, 2000
Remaining amortization period: 23 years
Asset valuation method: fair value
Actuarial assumptions: 1) investment rate of return – 5%; 2) projected salary increases – 4%;
3) inflation – 3%; and, 4) cost-of-living adjustments – based upon salary increase assumption for
FPF benefits, inflation assumption for LEOFF benefits.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-43
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, 2006, there were 42
members in the System:
Retirees and beneficiaries receiving benefits 38
Retirees and beneficiaries currently receiving full retirement through LEOFF 4
Active plan members vested 0
Active plan members non-vested 0
TOTAL 42
Funding Policy
Under state law, the Firefighter’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 Firefighter’s Pension Plan are paid by the Plan.
For 2006, this cost was $7,216.
An actuarial valuation is done every two years and was completed as of January 1, 2007. The
Actuarial Valuation of Firefighters’ Pension Fund table is reported in the Required Supplemental
Information section, and a recap of the Schedule of Funding Progress for the last five valuations
is as follows:
Valuation
Date
January 1
Actuarial
Value of
Assets
(rounded
to
thousands)
Actuarial
Accrued
Liabilities
Entry Age
(rounded to
thousands)
Unfunded
Actuarial
Accrued
Liabilities
(UAAL)
(rounded
to
Funded
Ratio
Covered
Payroll
(rounded
to
thousands)
UAAL
as
a % of
Covered
Payroll
1997 $5,238 $6,444 $1,206 81% $260 464%
2001 7,067 6,780 (287) 104% 0 -
2003 9,189 6,472 (2,717) 142% 0 -
2005 7,777 6,254 *(1,523) 124% 0 -
2007 7,847 6,364 (1,483) 123% 0 -
* A $29 decrease in the actuarial accrued liabilities was made after the City’s financial report was published and
before the valuation was released.
Significant actuarial assumptions used in the January 1, 2007, valuation include:
Valuation date: January 1, 2007
Actuarial cost method: entry age normal
Amortization method: 30-year, closed as of January 1, 2000
Remaining amortization period: 23 years
Asset valuation method: fair value
Actuarial assumptions: 1) investment rate of return – 5%; 2) projected salary increases – 4%;
3) inflation – 3%; and, 4) cost-of-living adjustments – based upon salary increase assumption for
FPF benefits, inflation assumption for LEOFF benefits.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-44
The Annual Required Contribution (ARC) was computed using 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 following Annual Pension Cost and Net Pension Obligation table presents the annual
Normal Cost and the ARC as of January 1, 2007, assuming the UAAL is amortized over a closed
30-year period beginning January 1, 2000.
Annual required contribution (ARC) 12/31/2005
Fiscal Year
Ending
12/31/2006
Fiscal Year
Ending
12/31/2007
Annual normal cost (BOY) $0 $0 $0
Amortization of UAAL (BOY) (107,622) (107,622) (104,731)
Interest to end of year (EOY)* (5,919) (5,919) (5,237)
ARC at EOY ($113,541) ($113,541) ($109,968)
Interest on NPO ($24,553) ($33,604) ($38,658)
Adjustment to ARC (31,545) (44,035) (54,591)
Annual pension cost (APC) ($106,649) ($103,110) ($94,035)
Employer contributions*** $58,029 $59,068 **$60,000
Change in NPO (164,578) (162,178) (154,035)
NPO at BOY prior year ($446,410) ($610,988) ($733,166)
NPO at EOY ($610,988) ($773,166) ($927,201)
* Assumed interest rate: 5.5% in 2005 and 2006, 5.0% in 2007
** Estimated amount to be replaced at year-end with actual
*** Employer contributions are total contributions to the fund net of disbursements for medical
and administrative expenses.
The Annual Development of Pension Cost is recapped as follows:
Fiscal Year
Ending
12/31
ARC @
EOY*
Interest on
NPO
ARC
Adjustment
Annual
Pension
Cost (APC)
Total
Employer
Contributions
Change
in
NPO
2002 $0 ($3,781) ($4,435) $654 $55,730 $(55,076)
2003 0 (7,088) (8,433) 1,347 63,088 (61,741)
2004 (205,680) (10,790) (13,047) (203,423) 63,151 (266,574)
2005 (113,541) (24,553) (31,545) (106,549) 58,029 (164,578)
2006 (113,541) (33,604) (44,035) (103,110) 59,068 (162,178)
2007 (109,868) (38,658) (54,591) (94,035) 60,000 (154,035)
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-44
The Annual Required Contribution (ARC) was computed using 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 following Annual Pension Cost and Net Pension Obligation table presents the annual
Normal Cost and the ARC as of January 1, 2007, assuming the UAAL is amortized over a closed
30-year period beginning January 1, 2000.
Annual required contribution (ARC) 12/31/2005
Fiscal Year
Ending
12/31/2006
Fiscal Year
Ending
12/31/2007
Annual normal cost (BOY) $0 $0 $0
Amortization of UAAL (BOY) (107,622) (107,622) (104,731)
Interest to end of year (EOY)* (5,919) (5,919) (5,237)
ARC at EOY ($113,541) ($113,541) ($109,968)
Interest on NPO ($24,553) ($33,604) ($38,658)
Adjustment to ARC (31,545) (44,035) (54,591)
Annual pension cost (APC) ($106,649) ($103,110) ($94,035)
Employer contributions*** $58,029 $59,068 **$60,000
Change in NPO (164,578) (162,178) (154,035)
NPO at BOY prior year ($446,410) ($610,988) ($733,166)
NPO at EOY ($610,988) ($773,166) ($927,201)
* Assumed interest rate: 5.5% in 2005 and 2006, 5.0% in 2007
** Estimated amount to be replaced at year-end with actual
*** Employer contributions are total contributions to the fund net of disbursements for medical
and administrative expenses.
The Annual Development of Pension Cost is recapped as follows:
Fiscal Year
Ending
12/31
ARC @
EOY*
Interest on
NPO
ARC
Adjustment
Annual
Pension
Cost (APC)
Total
Employer
Contributions
Change
in
NPO
2002 $0 ($3,781) ($4,435) $654 $55,730 $(55,076)
2003 0 (7,088) (8,433) 1,347 63,088 (61,741)
2004 (205,680) (10,790) (13,047) (203,423) 63,151 (266,574)
2005 (113,541) (24,553) (31,545) (106,549) 58,029 (164,578)
2006 (113,541) (33,604) (44,035) (103,110) 59,068 (162,178)
2007 (109,868) (38,658) (54,591) (94,035) 60,000 (154,035)
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-45
Fiscal Year
Ending
December
31
NPO
Balance
(Gain)/
Loss
Amort.
Factor***
Amort.
of
(Gain)/
Loss
Ending
Balance
2002 ($118,095) ($55,730) 14.2105 ($4,435) ($118,095)
2003 (179,836) (63,088) 14.0032 (8,433) (179,836)
2004 (446,410) (268,831) 13.7834 (13,047) (446,410)
2005 (610,988) (171,570) 14.1517 (31,545) (610,988)
2006 (733,166) (172,609) 13.8750 (44,035) (773,166)
2007 (927,201) (189,988) 14.1630 (54,591) (927,201)
Three year trend information is recapped as follows:
Fiscal Year
Ending
December 31
Annual
Pension
Cost (APC)
Contribution
as a
Percentage
of APC
Net
Pension
Obligation
(NPO)
2005 ($106,549) N/A ($610,988)
2006 (103,110) N/A (773,166)
2007 (94,035)* N/A* (927,201)*
*Amounts will be replaced at year-end with actual amounts.
Employees are not required to make contributions. The contributions to the System for 2006
include $77,821 from fire insurance premiums and $202,598 of investment income. Benefits and
refunds of the defined benefit pension plan are recognized when due and payable in accordance
with the terms of the plan. For 2006, $414,281 was paid for benefit payments and $11,537 for
medical payments.
The Net Pension Obligation moves from ($610,988) to ($773,166) and is included, as an asset, in
the City of Renton’s Governmental-wide Statement of Net Assets.
NOTE 7. OTHER POST EMPLOYMENT BENEFITS
In addition to the pension benefits described in Note 6, the City is required to pay post
employment benefits in accordance with State statute to all LEOFF 1 (law enforcement officers
and firefighters hired prior to October 1, 1977) and Fire Pension (firefighters hired prior to
March 1, 1970) retirees. Currently there are 98 LEOFF 1 retirees who receive necessary medical
and hospitalization coverage and five 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 $1,151,205 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
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-45
Fiscal Year
Ending
December
31
NPO
Balance
(Gain)/
Loss
Amort.
Factor***
Amort.
of
(Gain)/
Loss
Ending
Balance
2002 ($118,095) ($55,730) 14.2105 ($4,435) ($118,095)
2003 (179,836) (63,088) 14.0032 (8,433) (179,836)
2004 (446,410) (268,831) 13.7834 (13,047) (446,410)
2005 (610,988) (171,570) 14.1517 (31,545) (610,988)
2006 (733,166) (172,609) 13.8750 (44,035) (773,166)
2007 (927,201) (189,988) 14.1630 (54,591) (927,201)
Three year trend information is recapped as follows:
Fiscal Year
Ending
December 31
Annual
Pension
Cost (APC)
Contribution
as a
Percentage
of APC
Net
Pension
Obligation
(NPO)
2005 ($106,549) N/A ($610,988)
2006 (103,110) N/A (773,166)
2007 (94,035)* N/A* (927,201)*
*Amounts will be replaced at year-end with actual amounts.
Employees are not required to make contributions. The contributions to the System for 2006
include $77,821 from fire insurance premiums and $202,598 of investment income. Benefits and
refunds of the defined benefit pension plan are recognized when due and payable in accordance
with the terms of the plan. For 2006, $414,281 was paid for benefit payments and $11,537 for
medical payments.
The Net Pension Obligation moves from ($610,988) to ($773,166) and is included, as an asset, in
the City of Renton’s Governmental-wide Statement of Net Assets.
NOTE 7. OTHER POST EMPLOYMENT BENEFITS
In addition to the pension benefits described in Note 6, the City is required to pay post
employment benefits in accordance with State statute to all LEOFF 1 (law enforcement officers
and firefighters hired prior to October 1, 1977) and Fire Pension (firefighters hired prior to
March 1, 1970) retirees. Currently there are 98 LEOFF 1 retirees who receive necessary medical
and hospitalization coverage and five 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 $1,151,205 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
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-46
the retirees to apply for and utilize Medicare Part B coverage. The City reimburses these
Medicare premiums at an average cost of approximately $88.50 per month for 47 LEOFF I
retirees and five Fire Pension retirees.
NOTE 8. CONTINGENCIES
Litigation
The City has recorded in its financial statements all material liabilities, including an estimate for
situations that 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.
Construction Commitments
Refer to Note 5.
NOTE 9. RISK MANAGEMENT
The City of Renton is exposed to various risks of loss related to tort; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City
of Renton protects itself against unforeseen losses by utilizing a three-pronged risk management
approach. First, the City self-funds first level losses through its Insurance Fund. Second, excess
insurance is purchased to cover medium and large losses. Third, the City reserves the right to
utilize the provisions of Chapter 35A.31.060 RCW to fund catastrophic or uninsured losses.
This State statute allows cities to levy a non-voted property tax increase to pay for uninsured
claims. An analysis of the self-insurance retention levels, limits of insurance, and claims
administrator for the major types of coverage are as follows:
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-46
the retirees to apply for and utilize Medicare Part B coverage. The City reimburses these
Medicare premiums at an average cost of approximately $88.50 per month for 47 LEOFF I
retirees and five Fire Pension retirees.
NOTE 8. CONTINGENCIES
Litigation
The City has recorded in its financial statements all material liabilities, including an estimate for
situations that 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.
Construction Commitments
Refer to Note 5.
NOTE 9. RISK MANAGEMENT
The City of Renton is exposed to various risks of loss related to tort; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City
of Renton protects itself against unforeseen losses by utilizing a three-pronged risk management
approach. First, the City self-funds first level losses through its Insurance Fund. Second, excess
insurance is purchased to cover medium and large losses. Third, the City reserves the right to
utilize the provisions of Chapter 35A.31.060 RCW to fund catastrophic or uninsured losses.
This State statute allows cities to levy a non-voted property tax increase to pay for uninsured
claims. An analysis of the self-insurance retention levels, limits of insurance, and claims
administrator for the major types of coverage are as follows:
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-47
Type of Coverage
Risk
Retention
Occurrence Claims Administrator Aggregate Amount Carrier
Property $25,000 WA Cities Ins
Authority
$500,000,000 (per
occurrence subject to
sub-limits)
WA Cities Ins
Authority
Liability 250,000 WA Cities Ins
Authority
14,000,000
(per occurrence)
WA Cities Ins
Authority
Auto Liability 250,000 WA Cities Ins
Authority
14,000,000
(per occurrence)
WA Cities Ins
Authority
Equipment breakdown 5,000* Arthur J. Gallagher 50,000,000 Zurich
Public officers 250,000 WA Cities Ins
Authority
10,000,000 WA Cities Ins
Authority
Crime 10,000 Arthur J. Gallagher 1,000,000 Travelers
Casualty & Surety
Airport liability 0 Arthur J. Gallagher 100,000,000 Ace Property &
Casualty
Underground storage tank 5,000 Arthur J. Gallagher 1,000,000 Commerce &
Industry
Worker’s comp 350,000 Berkley Risk 1,000,000 Midwest Casualty
Employee health 140,000 HMA, Inc N/A SunLife
* There is a 4-hour utility interruption clause, prior to the deductible becoming applicable.
During 2006, 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 121
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.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes
general, automobile, police, public officials’ errors or omissions, stopgap, and employee benefits
liability. Limits are $3 million per occurrence self insured layer, and $12 million per occurrence
in the re-insured excess layer with no annual aggregate except $10 million per member for public
officials’ errors and omissions. The excess layer is insured by the purchase of reinsurance and
insurance. Total limits are $15 million per occurrence subject to aggregate sublimits in the excess
layers. 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
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-47
Type of Coverage
Risk
Retention
Occurrence Claims Administrator Aggregate Amount Carrier
Property $25,000 WA Cities Ins
Authority
$500,000,000 (per
occurrence subject to
sub-limits)
WA Cities Ins
Authority
Liability 250,000 WA Cities Ins
Authority
14,000,000
(per occurrence)
WA Cities Ins
Authority
Auto Liability 250,000 WA Cities Ins
Authority
14,000,000
(per occurrence)
WA Cities Ins
Authority
Equipment breakdown 5,000* Arthur J. Gallagher 50,000,000 Zurich
Public officers 250,000 WA Cities Ins
Authority
10,000,000 WA Cities Ins
Authority
Crime 10,000 Arthur J. Gallagher 1,000,000 Travelers
Casualty & Surety
Airport liability 0 Arthur J. Gallagher 100,000,000 Ace Property &
Casualty
Underground storage tank 5,000 Arthur J. Gallagher 1,000,000 Commerce &
Industry
Worker’s comp 350,000 Berkley Risk 1,000,000 Midwest Casualty
Employee health 140,000 HMA, Inc N/A SunLife
* There is a 4-hour utility interruption clause, prior to the deductible becoming applicable.
During 2006, 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 121
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.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes
general, automobile, police, public officials’ errors or omissions, stopgap, and employee benefits
liability. Limits are $3 million per occurrence self insured layer, and $12 million per occurrence
in the re-insured excess layer with no annual aggregate except $10 million per member for public
officials’ errors and omissions. The excess layer is insured by the purchase of reinsurance and
insurance. Total limits are $15 million per occurrence subject to aggregate sublimits in the excess
layers. 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
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-48
$500,000 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 agreement, 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, 2006, the City had accrued the following
amounts for outstanding claims:
Coverage
Total Claims
Payable 12/31/2006
Property & liability $537,693
Worker’s compensation 765,089
Employee health 1,325,000
TOTAL $2,627,782
2006
Property &
Liability
Worker’s
Compensation
Employee
Health Totals
IBNR claims at beginning of the year $610,044 $765,089 $1,050,700 $2,425,833
Current year and changes in estimates 1,840,667 987,554 2,584,817 5,413,038
Claims payments (1,913,018) (987,554) (2,310,517) (5,211,089)
IBNR claims at end of the year $537,693 $765,089 $1,325,000 $2,627,782
2005
Property &
Liability
Worker’s
Compensation
Employee
Health Totals
IBNR claims at beginning of the year $583,617 $695,930 $1,258,170 $2,537,717
Current year and changes in estimates 792,048 418,609 5,222,493 6,433,150
Claims payments (765,621) (349,450) (5,429,963) (6,545,034)
IBNR claims at end of the year $610,044 $765,089 $1,050,700 $2,425,833
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-48
$500,000 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 agreement, 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, 2006, the City had accrued the following
amounts for outstanding claims:
Coverage
Total Claims
Payable 12/31/2006
Property & liability $537,693
Worker’s compensation 765,089
Employee health 1,325,000
TOTAL $2,627,782
2006
Property &
Liability
Worker’s
Compensation
Employee
Health Totals
IBNR claims at beginning of the year $610,044 $765,089 $1,050,700 $2,425,833
Current year and changes in estimates 1,840,667 987,554 2,584,817 5,413,038
Claims payments (1,913,018) (987,554) (2,310,517) (5,211,089)
IBNR claims at end of the year $537,693 $765,089 $1,325,000 $2,627,782
2005
Property &
Liability
Worker’s
Compensation
Employee
Health Totals
IBNR claims at beginning of the year $583,617 $695,930 $1,258,170 $2,537,717
Current year and changes in estimates 792,048 418,609 5,222,493 6,433,150
Claims payments (765,621) (349,450) (5,429,963) (6,545,034)
IBNR claims at end of the year $610,044 $765,089 $1,050,700 $2,425,833
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-49
NOTE 10. INTERFUND TRANSACTIONS
Interfund transactions are classified as follows:
1. 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 proprietary funds are netted as part of the
reconciliation to the Government-wide financial statements.
3. 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 elimination upon consolidation.
As of December 31, 2006, outstanding interfund balances (resulting from various interfund
transactions) were as follows:
Fund
Receivables
Due From
Other
Funds
Payables
Due To
Other
Funds Purpose
General fund $330 $15,000 To accrue 2006 interfund services provide, paid for in 2007
Street 47,898 0 To accrue 2006 interfund services provide, paid for in 2007
Hotel / motel 15,000 0 To accrue 2006 interfund services provide, paid for in 2007
General CIP 0 32,038 To accrue 2006 interfund services provide, paid for in 2007
South Lake WA
infrastructure
0 5,586 To accrue 2006 interfund services provide, paid for in 2007
Waterworks utility 56,328 50,676 To accrue 2006 interfund services provide, paid for in 2007
Golf 0 5,666 To accrue 2006 interfund services provide, paid for in 2007
Airport 0 2,734 To accrue 2006 interfund services provide, paid for in 2007
Insurance 0 7,855 To accrue 2006 interfund services provide, paid for in 2007
TOTAL* $119,556 $119,555
*Difference is the result of rounding individual fund numbers in the aggregate.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-49
NOTE 10. INTERFUND TRANSACTIONS
Interfund transactions are classified as follows:
1. 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 proprietary funds are netted as part of the
reconciliation to the Government-wide financial statements.
3. 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 elimination upon consolidation.
As of December 31, 2006, outstanding interfund balances (resulting from various interfund
transactions) were as follows:
Fund
Receivables
Due From
Other
Funds
Payables
Due To
Other
Funds Purpose
General fund $330 $15,000 To accrue 2006 interfund services provide, paid for in 2007
Street 47,898 0 To accrue 2006 interfund services provide, paid for in 2007
Hotel / motel 15,000 0 To accrue 2006 interfund services provide, paid for in 2007
General CIP 0 32,038 To accrue 2006 interfund services provide, paid for in 2007
South Lake WA
infrastructure
0 5,586 To accrue 2006 interfund services provide, paid for in 2007
Waterworks utility 56,328 50,676 To accrue 2006 interfund services provide, paid for in 2007
Golf 0 5,666 To accrue 2006 interfund services provide, paid for in 2007
Airport 0 2,734 To accrue 2006 interfund services provide, paid for in 2007
Insurance 0 7,855 To accrue 2006 interfund services provide, paid for in 2007
TOTAL* $119,556 $119,555
*Difference is the result of rounding individual fund numbers in the aggregate.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-50
The following is a recap of interfund advances (expected to be paid by 2007):
Fund
Advances
Due From
Other
Funds
Advances
Due To
Other
Funds Purpose
Leased property $0 $63,900 Loan from Municipal Facilities to fund
Tenant Improvements
Municipal facilities 63,900 0 Loan to Leased Property to fund Tenant
Improvements
TOTAL $63,900 $63,900
Transfers for 2006 were as follows:
Fund
Transfer
In
Transfer
Out Purpose
General $0 $272,000 Contribution for LEOFF 1 LT Care
Arterial street 0 440,000 Contribution for CIP Overlay Projects
1% for Art 17,505 0 From Transportation CIP for Art
General debt 525,000 0 Contribution in for Fire Impact Debt.
SAD/LID 0 68,446 Transfer Fund Balance to Waterwork
Close out the SAD/LID Debt Service Fund
Fire impact 0 525,000 Contribution for Fire Impact Debt Payments
Transportation impact 0 965,000 Contribution to Transportation CIP
Transportation CIP 2,360,390 17,505 Contribution for Capital Improvements
Contribution for 1% Art project
Municipal CIP 0 402,000 Transfer IS Fund Balance
South Lake WA
infrastructure
0 955,390 Reimbursement for CIP Costs
Waterworks 68,446 0 Transfer SAD/LID Fund Balance
Municipal CIP 60,000 Interfund Loan Correction
Leased property services 60,000 0 Interfund Loan Correction
Information services 402,000 0 Transfer IS Fund Balance previously in
Municipal CIP Fund
Insurance fund 272,000 0 From General Fund for LEOFF 1 LT Care
TOTAL $ 3,705,341 $ 3,705,341
NOTE 11. NET ASSETS
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 that are associated with non-liquid, capital assets less outstanding capital asset related
debt.
The net related debt is the debt less the outstanding liquid assets and any associated
unamortized costs.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-50
The following is a recap of interfund advances (expected to be paid by 2007):
Fund
Advances
Due From
Other
Funds
Advances
Due To
Other
Funds Purpose
Leased property $0 $63,900 Loan from Municipal Facilities to fund
Tenant Improvements
Municipal facilities 63,900 0 Loan to Leased Property to fund Tenant
Improvements
TOTAL $63,900 $63,900
Transfers for 2006 were as follows:
Fund
Transfer
In
Transfer
Out Purpose
General $0 $272,000 Contribution for LEOFF 1 LT Care
Arterial street 0 440,000 Contribution for CIP Overlay Projects
1% for Art 17,505 0 From Transportation CIP for Art
General debt 525,000 0 Contribution in for Fire Impact Debt.
SAD/LID 0 68,446 Transfer Fund Balance to Waterwork
Close out the SAD/LID Debt Service Fund
Fire impact 0 525,000 Contribution for Fire Impact Debt Payments
Transportation impact 0 965,000 Contribution to Transportation CIP
Transportation CIP 2,360,390 17,505 Contribution for Capital Improvements
Contribution for 1% Art project
Municipal CIP 0 402,000 Transfer IS Fund Balance
South Lake WA
infrastructure
0 955,390 Reimbursement for CIP Costs
Waterworks 68,446 0 Transfer SAD/LID Fund Balance
Municipal CIP 60,000 Interfund Loan Correction
Leased property services 60,000 0 Interfund Loan Correction
Information services 402,000 0 Transfer IS Fund Balance previously in
Municipal CIP Fund
Insurance fund 272,000 0 From General Fund for LEOFF 1 LT Care
TOTAL $ 3,705,341 $ 3,705,341
NOTE 11. NET ASSETS
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 that are associated with non-liquid, capital assets less outstanding capital asset related
debt.
The net related debt is the debt less the outstanding liquid assets and any associated
unamortized costs.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-51
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:
Fund Purpose Amount
Hotel / Motel Tax Tourism $325,404
Arterial Street Road construction 477,844
Cable Communications Cable development 185,012
Community Development Impact Mitigation for park development 895,404
Municipal Facilities Capital projects 15,458,013
Capital Projects General governmental capital projects 8,465,556
South Lake Washington Construction infrastructure for SLW 11,651,706
Fire Impact Mitigation for fire improvements 1,163,853
Transportation Impact Mitigation for transportation projects 3,638,871
Waterworks Debt service reserves 3,114,332
Golf Course Debt service reserves 441,358
TOTAL $45,817,353
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 City had no prior period adjustments to beginning fund balances or net assets.
NOTE 13. SHORT TERM DEBT
Short-term debt is defined as debt with maturity of one year or less from the date of issuance.
The City had no short-term debt in 2006.
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
is 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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-51
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:
Fund Purpose Amount
Hotel / Motel Tax Tourism $325,404
Arterial Street Road construction 477,844
Cable Communications Cable development 185,012
Community Development Impact Mitigation for park development 895,404
Municipal Facilities Capital projects 15,458,013
Capital Projects General governmental capital projects 8,465,556
South Lake Washington Construction infrastructure for SLW 11,651,706
Fire Impact Mitigation for fire improvements 1,163,853
Transportation Impact Mitigation for transportation projects 3,638,871
Waterworks Debt service reserves 3,114,332
Golf Course Debt service reserves 441,358
TOTAL $45,817,353
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 City had no prior period adjustments to beginning fund balances or net assets.
NOTE 13. SHORT TERM DEBT
Short-term debt is defined as debt with maturity of one year or less from the date of issuance.
The City had no short-term debt in 2006.
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
is 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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-52
Outstanding debt issues as of December 31, 2006, are as follows:
Type of Debt Interest Rates
Issued
Date
Maturity
Date
Original
Issued
Amount
GOVERNMENTAL DEBT:
General Obligation Bonds:
Limited
1997 GO Bonds 5.55%-5.75% 05/01/97 12/01/17 $14,697,744
2000 GO Valley Comm Bonds 4.30%-5.38% 09/15/00 12/01/15 2,551,600
2001 GO Refunding Bonds 2.10%-5.25% 11/01/01 12/01/17 13,505,000
2001 GO Bonds 5.0%-5.25% 11/01/01 12/01/21 6,000,000
2002 GO Bonds 2.50%-5.00% 7/15/02 12/01/22 3,895,000
2006 GO Bonds 4.25%-5.00% 8/08/06 12/01/28 17,980,000
SUBTOTAL LIMITED GO 58,629,344
Unlimited
1993 GO Refunding Bonds - Senior Housing 5.20%-61.0% 09/01/93 02/01/09 4,270,000
SUBTOTAL UNLIMITED GO 4,270,000
TOTAL GENERAL OBLIGATION BONDS 62,899,344
Installment Contracts:
Certificates of Participation 4.51% 09/01/98 06/01/08 278,172
TOTAL INSTALLMENT CONTRACTS 278,172
TOTAL GOVERNMENTAL-TYPE DEBT ISSUANCE 63,177,516
BUSINESS-TYPE DEBT:
Revenue Bonds:
1998 Water/Sewer Refunding 4.46% 03/01/98 06/01/13 6,120,000
1999 Golf System Refunding 4.96% 04/01/99 12/01/15 5,040,000
2002 Water/Sewer 4.80% 07/01/02 12/01/22 11,980,000
2003 Water/Sewer Refunding 3.20% 09/15/03 06/01/13 8,035,000
2004 Water/Sewer 4.33% 11/01/04 12/01/27 10,335,000
TOTAL REVENUE BONDS 41,510,000
Public Works Trust Fund Loans:
Sierra Heights Sewer Improvements 2.00% 01/20/92 07/01/12 888,462
Central Renton Sewer Replacement 1.00% 05/04/93 07/01/15 1,631,800
East Renton Interceptor 1.00% 06/07/93 07/01/13 2,542,704
Dayton Avenue NE 2.00% 05/12/94 07/01/14 96,958
NE 27th/Aberdeen Drainage Improvements 1.00% 05/15/95 07/01/15 731,000
East Kennydale Interceptor 2.00% 01/24/98 07/01/16 2,093,740
Honeycreek Interceptor 2.00% 12/04/95 07/01/16 1,840,568
Corrosion Control Treatment Facilities 1.00% 01/06/97 07/01/17 1,106,000
Maplewood Water Treatment Improvement 0.50% 1/22/02 07/01/21 567,831
Construct CT Pipeline for Wells 0.50% 11/5/02 7/1/22 814,527
Maplewood Water Treatment Improvement 0.50% 06/03/04 07/01/24 4,892,500
TOTAL PUBLIC WORKS TRUST FUND LOANS 17,206,090
Leases:
Golf Course Operating Lease 3.81% 4/1/03 4/1/06 78,192
TOTAL LEASES 78,192
TOTAL BUSINESS-TYPE DEBT ISSUANCE 58,794,282
TOTAL AMOUNT ISSUED ON OUTSTANDING DEBT AS OF DECEMBER 31, 2006 $121,971,798
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-52
Outstanding debt issues as of December 31, 2006, are as follows:
Type of Debt Interest Rates
Issued
Date
Maturity
Date
Original
Issued
Amount
GOVERNMENTAL DEBT:
General Obligation Bonds:
Limited
1997 GO Bonds 5.55%-5.75% 05/01/97 12/01/17 $14,697,744
2000 GO Valley Comm Bonds 4.30%-5.38% 09/15/00 12/01/15 2,551,600
2001 GO Refunding Bonds 2.10%-5.25% 11/01/01 12/01/17 13,505,000
2001 GO Bonds 5.0%-5.25% 11/01/01 12/01/21 6,000,000
2002 GO Bonds 2.50%-5.00% 7/15/02 12/01/22 3,895,000
2006 GO Bonds 4.25%-5.00% 8/08/06 12/01/28 17,980,000
SUBTOTAL LIMITED GO 58,629,344
Unlimited
1993 GO Refunding Bonds - Senior Housing 5.20%-61.0% 09/01/93 02/01/09 4,270,000
SUBTOTAL UNLIMITED GO 4,270,000
TOTAL GENERAL OBLIGATION BONDS 62,899,344
Installment Contracts:
Certificates of Participation 4.51% 09/01/98 06/01/08 278,172
TOTAL INSTALLMENT CONTRACTS 278,172
TOTAL GOVERNMENTAL-TYPE DEBT ISSUANCE 63,177,516
BUSINESS-TYPE DEBT:
Revenue Bonds:
1998 Water/Sewer Refunding 4.46% 03/01/98 06/01/13 6,120,000
1999 Golf System Refunding 4.96% 04/01/99 12/01/15 5,040,000
2002 Water/Sewer 4.80% 07/01/02 12/01/22 11,980,000
2003 Water/Sewer Refunding 3.20% 09/15/03 06/01/13 8,035,000
2004 Water/Sewer 4.33% 11/01/04 12/01/27 10,335,000
TOTAL REVENUE BONDS 41,510,000
Public Works Trust Fund Loans:
Sierra Heights Sewer Improvements 2.00% 01/20/92 07/01/12 888,462
Central Renton Sewer Replacement 1.00% 05/04/93 07/01/15 1,631,800
East Renton Interceptor 1.00% 06/07/93 07/01/13 2,542,704
Dayton Avenue NE 2.00% 05/12/94 07/01/14 96,958
NE 27th/Aberdeen Drainage Improvements 1.00% 05/15/95 07/01/15 731,000
East Kennydale Interceptor 2.00% 01/24/98 07/01/16 2,093,740
Honeycreek Interceptor 2.00% 12/04/95 07/01/16 1,840,568
Corrosion Control Treatment Facilities 1.00% 01/06/97 07/01/17 1,106,000
Maplewood Water Treatment Improvement 0.50% 1/22/02 07/01/21 567,831
Construct CT Pipeline for Wells 0.50% 11/5/02 7/1/22 814,527
Maplewood Water Treatment Improvement 0.50% 06/03/04 07/01/24 4,892,500
TOTAL PUBLIC WORKS TRUST FUND LOANS 17,206,090
Leases:
Golf Course Operating Lease 3.81% 4/1/03 4/1/06 78,192
TOTAL LEASES 78,192
TOTAL BUSINESS-TYPE DEBT ISSUANCE 58,794,282
TOTAL AMOUNT ISSUED ON OUTSTANDING DEBT AS OF DECEMBER 31, 2006 $121,971,798
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-53
For outstanding debt additions and retirements are summarized as follows:
Type of Debt
Balanced
Owed
01/01/2006 Additions Deductions
Balanced
Owed
12/31/2006
Due
Within
One Year
GOVERNMENTAL DEBT:
General Obligation Bonds:
Limited
1996 GO Bonds $111,670 $0 $111,670 $0 $0
1997 GO Refunding Bonds 429,033 0 429,033 0 0
1997 GO Bonds 2,037,744 0 198,243 1,839,501 693,926
1997 GO Bonds – CAB Long Term Interest 0 1,315,199 0 1,315,199 0
2000 GO Valley Comm Bonds 1,908,000 0 153,000 1,755,000 160,000
2001 GO Refunding Bonds 13,195,000 0 0 13,195,000 75,000
2001 GO Bonds 6,000,000 0 0 6,000,000 0
2002 GO Bonds 3,475,000 0 150,000 3,325,000 150,000
2006 GO Bonds 0 17,980,000 17,980,000 0
SUBTOTAL LIMITED GO 27,156,447 19,295,199 1,041,946 45,409,700 1,078,926
Unlimited
1993 GO Refunding Bonds-Senior Housing 1,870,000 0 430,000 1,440,000 455,000
SUBTOTAL UNLIMITED GO 1,870,000 0 430,000 1,440,000 455,000
TOTAL GENERAL OBLIGATION BONDS 29,026,447 19,295,199 1,471,946 46,849,700 1,533,926
Installment Contracts:
Certificates of Participation 81,217 0 31,404 49,813 32,837
TOTAL INSTALLMENT CONTRACTS 81,217 0 31,404 49,813 32,837
Employee Leave Benefits (Primarily General Fund
Obligations)
5,341,112 3,566,437 4,713,554
4,193,995 2,428,017
TOTAL GENERAL OBLIGATION DEBT 34,448,776 22,861,636 6,216,904 51,093,508 3,994,780
BUSINESS-TYPE DEBT:
Revenue Bonds:
1998 Water/Sewer Refunding 4,550,000 0 520,000 4,030,000 545,000
1999 Golf System Refunding 3,360,000 0 270,000 3,090,000 285,000
2002 Water/Sewer 11,610,000 0 110,000 11,500,000 110,000
2003 Water/Sewer Refunding 5,935,000 0 1,050,000 4,885,000 1,085,000
2004 Water/Sewer 10,335,000 0 0 10,335,000 0
TOTAL REVENUE BONDS 35,790,000 0 1,950,000 33,840,000 2,025,000
Public Works Trust Fund Loans:
Sierra Heights Sewer Improvements 179,500 0 25,642 153,858 25,642
Central Renton Sewer Replacement 803,903 0 87,483 716,420 87,483
East Renton Interceptor 1,076,560 0 134,570 941,990 134,570
Dayton Avenue NE 45,928 0 5,103 40,825 5,103
NE 27th/Aberdeen Drainage Improvements 425,897 0 42,590 383,307 42,590
East Kennydale Interceptor 1,285,398 0 116,855 1,168,543 116,855
Honeycreek Interceptor 1,065,592 0 96,872 968,720 96,872
Corrosion Control Treatment Facilities 592,283 0 49,357 542,926 49,357
Maplewood Water Improvement 484,815 0 30,301 454,514 30,301
Const. CT Pipeline for Wells 728,787 0 42,870 685,917 42,870
Maplewood Water Improvements 4,892,500 0 257,500 4,635,000 257,500
TOTAL PUBLIC WORKS TRUST FUND LOANS 11,581,161 0 889,143 10,692,018 889,143
OPERATING LEASES:
Golf Course Cart lease 8,622 0 8,622 0 0
TOTAL OPERATING LEASES 0 0 8,622 0 0
Employee Leave Benefits 385,699 487,123 409,874 462,947 110,016
TOTAL BUSINESS-TYPE DEBT 47,765,482 487,123 3,257,639 44,994,965 3,024,159
GRAND TOTALS $82,214,258 $23,348,759 $9,474,543 $96,088,473 $7,018,939
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-53
For outstanding debt additions and retirements are summarized as follows:
Type of Debt
Balanced
Owed
01/01/2006 Additions Deductions
Balanced
Owed
12/31/2006
Due
Within
One Year
GOVERNMENTAL DEBT:
General Obligation Bonds:
Limited
1996 GO Bonds $111,670 $0 $111,670 $0 $0
1997 GO Refunding Bonds 429,033 0 429,033 0 0
1997 GO Bonds 2,037,744 0 198,243 1,839,501 693,926
1997 GO Bonds – CAB Long Term Interest 0 1,315,199 0 1,315,199 0
2000 GO Valley Comm Bonds 1,908,000 0 153,000 1,755,000 160,000
2001 GO Refunding Bonds 13,195,000 0 0 13,195,000 75,000
2001 GO Bonds 6,000,000 0 0 6,000,000 0
2002 GO Bonds 3,475,000 0 150,000 3,325,000 150,000
2006 GO Bonds 0 17,980,000 17,980,000 0
SUBTOTAL LIMITED GO 27,156,447 19,295,199 1,041,946 45,409,700 1,078,926
Unlimited
1993 GO Refunding Bonds-Senior Housing 1,870,000 0 430,000 1,440,000 455,000
SUBTOTAL UNLIMITED GO 1,870,000 0 430,000 1,440,000 455,000
TOTAL GENERAL OBLIGATION BONDS 29,026,447 19,295,199 1,471,946 46,849,700 1,533,926
Installment Contracts:
Certificates of Participation 81,217 0 31,404 49,813 32,837
TOTAL INSTALLMENT CONTRACTS 81,217 0 31,404 49,813 32,837
Employee Leave Benefits (Primarily General Fund
Obligations)
5,341,112 3,566,437 4,713,554
4,193,995 2,428,017
TOTAL GENERAL OBLIGATION DEBT 34,448,776 22,861,636 6,216,904 51,093,508 3,994,780
BUSINESS-TYPE DEBT:
Revenue Bonds:
1998 Water/Sewer Refunding 4,550,000 0 520,000 4,030,000 545,000
1999 Golf System Refunding 3,360,000 0 270,000 3,090,000 285,000
2002 Water/Sewer 11,610,000 0 110,000 11,500,000 110,000
2003 Water/Sewer Refunding 5,935,000 0 1,050,000 4,885,000 1,085,000
2004 Water/Sewer 10,335,000 0 0 10,335,000 0
TOTAL REVENUE BONDS 35,790,000 0 1,950,000 33,840,000 2,025,000
Public Works Trust Fund Loans:
Sierra Heights Sewer Improvements 179,500 0 25,642 153,858 25,642
Central Renton Sewer Replacement 803,903 0 87,483 716,420 87,483
East Renton Interceptor 1,076,560 0 134,570 941,990 134,570
Dayton Avenue NE 45,928 0 5,103 40,825 5,103
NE 27th/Aberdeen Drainage Improvements 425,897 0 42,590 383,307 42,590
East Kennydale Interceptor 1,285,398 0 116,855 1,168,543 116,855
Honeycreek Interceptor 1,065,592 0 96,872 968,720 96,872
Corrosion Control Treatment Facilities 592,283 0 49,357 542,926 49,357
Maplewood Water Improvement 484,815 0 30,301 454,514 30,301
Const. CT Pipeline for Wells 728,787 0 42,870 685,917 42,870
Maplewood Water Improvements 4,892,500 0 257,500 4,635,000 257,500
TOTAL PUBLIC WORKS TRUST FUND LOANS 11,581,161 0 889,143 10,692,018 889,143
OPERATING LEASES:
Golf Course Cart lease 8,622 0 8,622 0 0
TOTAL OPERATING LEASES 0 0 8,622 0 0
Employee Leave Benefits 385,699 487,123 409,874 462,947 110,016
TOTAL BUSINESS-TYPE DEBT 47,765,482 487,123 3,257,639 44,994,965 3,024,159
GRAND TOTALS $82,214,258 $23,348,759 $9,474,543 $96,088,473 $7,018,939
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-54
DEEP DISCOUNT DEBT
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 2007, 2008, and 2009
with an accreted value of $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
$1,839,501, net of the remaining unamortized discount.
SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMMITMENT
As of December 31, 2006, 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 12 in the Statistical Section shows the
computation of legal debt margin for general and special purpose capacities for the City of
Renton.
ANNUAL DEBT SERVICE REQUIREMENTS
The annual debt service requirements to maturity, including principal and interest, for long-term
debt as of December 31, 2006, are as follows:
Governmental Activities Business-type Activities
Year Ending December 31 Principle Interest Principle Interest
2007 $1,566,763 $2,702,284 $2,914,143 $1,619,071
2008 2,079,551 2,698,249 2,994,143 1,527,344
2009 2,205,000 2,549,448 3,074,143 1,440,494
2010 2,269,000 1,975,553 3,154,143 1,348,254
2011 2,353,000 1,883,688 3,244,143 1,251,000
2012-2016 13,326,000 7,612,869 11,298,228 4,899,474
2017-2021 13,390,000 4,175,483 7,647,712 3,360,272
2022-2026 5,785,000 1,534,414 8,445,370 1,632,689
2027-2028 2,610,000 197,250 1,760,000 88,000
TOTAL $45,584,314 $25,329,238 $44,532,025 $17,166,598
AMOUNT AVAILABLE FOR DEBT SERVICE
Fund balances that have been reserved for debt repayment are $3,068,584 in the debt service
funds.
NOTE 15 - DEFERRED CHARGES IN PROPRIETARY FUNDS
As of December 31, 2006, the Waterworks Utility Fund had deferred charges and other assets in
the amount of $761,729 for debt issue costs on the 2002-2004 Revenue Bonds. This amount will
be fully amortized by 2022. The Golf Course Fund amount was $40,547 for the 1999 Refunded
Bond debt issue costs and discount. This amount will be fully amortized by 2016.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-54
DEEP DISCOUNT DEBT
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 2007, 2008, and 2009
with an accreted value of $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
$1,839,501, net of the remaining unamortized discount.
SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMMITMENT
As of December 31, 2006, 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 12 in the Statistical Section shows the
computation of legal debt margin for general and special purpose capacities for the City of
Renton.
ANNUAL DEBT SERVICE REQUIREMENTS
The annual debt service requirements to maturity, including principal and interest, for long-term
debt as of December 31, 2006, are as follows:
Governmental Activities Business-type Activities
Year Ending December 31 Principle Interest Principle Interest
2007 $1,566,763 $2,702,284 $2,914,143 $1,619,071
2008 2,079,551 2,698,249 2,994,143 1,527,344
2009 2,205,000 2,549,448 3,074,143 1,440,494
2010 2,269,000 1,975,553 3,154,143 1,348,254
2011 2,353,000 1,883,688 3,244,143 1,251,000
2012-2016 13,326,000 7,612,869 11,298,228 4,899,474
2017-2021 13,390,000 4,175,483 7,647,712 3,360,272
2022-2026 5,785,000 1,534,414 8,445,370 1,632,689
2027-2028 2,610,000 197,250 1,760,000 88,000
TOTAL $45,584,314 $25,329,238 $44,532,025 $17,166,598
AMOUNT AVAILABLE FOR DEBT SERVICE
Fund balances that have been reserved for debt repayment are $3,068,584 in the debt service
funds.
NOTE 15 - DEFERRED CHARGES IN PROPRIETARY FUNDS
As of December 31, 2006, the Waterworks Utility Fund had deferred charges and other assets in
the amount of $761,729 for debt issue costs on the 2002-2004 Revenue Bonds. This amount will
be fully amortized by 2022. The Golf Course Fund amount was $40,547 for the 1999 Refunded
Bond debt issue costs and discount. This amount will be fully amortized by 2016.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-55
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 2006.
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. Federal Way was formally admitted in 2000. The
agreement is sanctioned by the provisions and terms of the Interlocal Cooperation Act pursuant
to Chapter 39.34 RCW. 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 that 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 Comm 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, 2006, on Valley Comm:
Valley Comm Renton Interest
Assets $22,055,273
Liabilities 718,868
22.51%*
TOTAL Equity $21,336,405 $3,981,550
*After removing $3,642,531 in assets not subject to the equity interest
calculations.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-55
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 2006.
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. Federal Way was formally admitted in 2000. The
agreement is sanctioned by the provisions and terms of the Interlocal Cooperation Act pursuant
to Chapter 39.34 RCW. 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 that 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 Comm 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, 2006, on Valley Comm:
Valley Comm Renton Interest
Assets $22,055,273
Liabilities 718,868
22.51%*
TOTAL Equity $21,336,405 $3,981,550
*After removing $3,642,531 in assets not subject to the equity interest
calculations.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-56
Completed Financial Statements for Valley Comm can be obtained from the Valley
Communications Center, 23807 – 98th Avenue South, Kent, WA 98031.
NOTE 18. SUBSEQUENT EVENTS
The City of Renton, on March 16, 2007, signed an agreement obligating the City of Renton’s
golf course to purchase, through a capital lease agreement, 50 golf carts. The terms of the
agreement commence on June 15, 2007, and consist of 48 monthly payments of $2,022.14 at an
interest rate of 5.25%. The final payment to purchase the golf carts is $50.
2006 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-56
Completed Financial Statements for Valley Comm can be obtained from the Valley
Communications Center, 23807 – 98th Avenue South, Kent, WA 98031.
NOTE 18. SUBSEQUENT EVENTS
The City of Renton, on March 16, 2007, signed an agreement obligating the City of Renton’s
golf course to purchase, through a capital lease agreement, 50 golf carts. The terms of the
agreement commence on June 15, 2007, and consist of 48 monthly payments of $2,022.14 at an
interest rate of 5.25%. The final payment to purchase the golf carts is $50.
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Taxes $ 38,201,658 $ 38,201,658 $ 38,682,760 $ 577,780 $ 39,260,540
Licenses and permits 3,395,598 3,395,598 3,122,817 9,770 3,132,587
Intergovernmental revenues 2,522,657 3,042,325 2,888,949 (42,196) 2,846,753
Charges for services 2,195,500 2,233,190 2,330,797 (84,075) 2,246,722
Fines and forfeits 701,400 701,400 874,303 (13,484) 860,819
Interfund revenues 2,554,400 2,554,400 1,785,150 6,030 1,791,180
Contributions 23,800 25,050 66,781 - 66,781
Interest 649,500 649,500 629,502 31,979 661,481
Miscellaneous revenues 114,000 114,000 215,830 (26) 215,804
TOTAL REVENUES $ 50,358,513 $ 50,917,121 $ 50,596,889 $ 485,778 $ 51,082,667
EXPENDITURES
Current:
General government $ 10,809,279 $ 11,092,919 $ 10,732,371 $ (33,580) $ 10,698,791
Security of persons and property 31,769,975 32,479,607 31,651,325 (494,022) 31,157,303
Physical environment 2,643,362 2,679,262 2,585,038 24,414 2,609,452
Economic environment 4,763,397 5,031,074 4,685,655 24,090 4,709,745
Mental & physical health 10,600 10,600 9,231 - 9,231
Capital outlay 54,900 116,040 63,394 16,949 80,343
TOTAL EXPENDITURES $ 50,051,513 $ 51,409,502 $ 49,727,014 $ (462,149) $ 49,264,865
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ 307,000 $ (492,381) $ 869,875 $ 947,927 $ 1,817,802
OTHER FINANCING SOURCES (USES)
Transfer in $ - $ 18,500 $ - $ - $ -
Transfer (out)(272,000) (290,500) (272,000) - (272,000)
Sale of capital assets - - 1,424 - 1,424
TOTAL OTHER FINANCE SOURCES (USES) $ (272,000) $ (272,000) $ (270,576) $ - $ (270,576)
NET CHANGE IN FUND BALANCE $ 35,000 $ (764,381) $ 599,299 $ 947,927 $ 1,547,226
FUND BALANCE JANUARY 1 $ - $ 764,381 $ 9,769,717 $ (571,846) $ 9,197,871
FUND BALANCE DECEMBER 31 $ 35,000 $ - $ 10,369,016 $ 376,081 $ 10,745,097
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - GENERAL FUND
For the Year Ended December 31, 2006
Required Supplemental Information, 5-1
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORGINIAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Taxes $ 9,228,676 $ 9,228,676 $ 9,436,591 $ 67,081 $ 9,503,672
Intergovernmental revenues - - 11,085 (3,754) 7,331
Charges for services 1,992,100 2,030,860 2,219,974 52,340 2,272,314
Contributions 2,900 2,900 30,791 - 30,791
Interest 36,700 36,700 47,641 - 47,641
Miscellaneous revenues - - 6,679 212 6,891
TOTAL REVENUES $ 11,260,376 $ 11,299,136 $ 11,752,761 $ 115,879 $ 11,868,640
EXPENDITURES
Current:
General government $ 2,877,408 $ 2,939,408 $ 2,825,323 $ 5,303 $ 2,830,626
Economic environment 564,450 564,450 485,812 (4,585) 481,227
Culture & recreation 7,818,518 7,929,278 8,122,208 (13,596) 8,108,612
Capital outlay - - (206) 206 -
TOTAL EXPENDITURES $ 11,260,376 $ 11,433,136 $ 11,433,137 $ (12,672) $ 11,420,465
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ - $ (134,000) $ 319,624 $ 128,551 $ 448,175
TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - $ -
NET CHANGE IN FUND BALANCE $ - $ (134,000) $ 319,624 $ 128,551 $ 448,175
FUND BALANCE JANUARY 1 - 134,000 1,431,865 (594,051) 837,814
FUND BALANCE DECEMBER 31 $ - $ - $ 1,751,489 $ (465,500) $ 1,285,989
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - PARKS FUND
For the Year Ended December 31, 2006
Required Supplemental Information, 5-2
2006 Comprehensive Annual Financial Report City of Renton, Washington
ANNUAL
FIRE TOTAL REQUIRED PERCENTAGE
EMPLOYER INSURANCE EMPLOYER CONTRIBUTION OF ARC
FISCAL YEAR ENDING CONTRIBUTIONS* PREMIUMS CONTRIBUTIONS (ARC)** CONTRIBUTED
December 31, 2002 $ - $ 55,730 $ 55,730 $ - N/A %
December 31, 2003 - 63,088 63,088 - N/A
December 31, 2004 (7,099) 70,250 63,151 (205,680) N/A
December 31, 2005 (14,375) 72,404 58,029 (113,541) N/A
December 31, 2006 (18,753) 77,821 59,068 (113,541) N/A
December 31, 2007 (20,000) *** 80,000 *** 60,000 *** (109,968) N/A ***
*
** The ARC is documented as 0 for negative amounts prior to 2004.
*** Assumed amounts will be replaced at year end with actual amounts.
Employer contributions for pension are total contributions to the Fund net of disbursements from the Fund for medical expenses under RCW
41.26.150 and administrative expenses.
ACTUARIAL VALUATION OF FIREFIGHTERS' PENSION FUND
EMPLOYER CONTRIBUTIONS
December 31, 2006
Required Supplemental Information, 5-3
2006 Comprehensive Annual Financial Report City of Renton, Washington
Required Supplemental Information, 5-4
This page is intentionally left blank.
2006 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-1
NON-MAJOR 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.
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.
1% 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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-2
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).
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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-3
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 of numerous capital improvement 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.
2006 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-4
Proprietary Funds
Enterprise Funds
AIRPORT FUND
Accounts for revenues and expenses for administration, debt services, operation, capital
improvements, and maintenance of the Renton Municipal Airport and Will Rodger-Wily
Post Memorial Seaplane Base. Sources of support to the fund are leases, fuel charges,
investment interest, and grant funding as available.
GOLF COURSE FUND
The Golf Course Fund was created after the City acquired the Maplewood Golf Course.
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 vehicles. All equipment costs, including depreciation, are factors in calculating the
rates that are charged to each user department.
INSURANCE FUND
The Insurance Fund provides accounting for self-insurance services to all City
departments, including provisions for losses on property, liability, worker’s
compensation, unemployment compensation, and the health care program. Expenses are
paid from the Insurance Fund and rates are charged to departments based on use and/or
coverage requirements.
2006 Comprehensive Annual Financial Report City of Renton, Washington
ARTERIAL HOTEL/
ASSETS STREET STREET LIBRARY MOTEL TAX
Cash & cash equivalents $ 321,306 $ 1,687,604 $ 275,778 $ 287,715
Investments - - - -
Receivables (net of allowances):
Taxes - - - -
Customer accounts - 201,509 - -
Accrued interest & penalty - - 1,433 -
Due from other funds - 47,898 - 15,000
Due from other governmental units 156,538 73,665 - 34,276
TOTAL ASSETS $ 477,844 $ 2,010,676 $ 277,211 $ 336,991
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $- $ 78,608 $ 31,052 $ 11,587
Taxes payable - 385 93 -
Retainage payable - - - -
Due to other funds - - - -
Interfund loans payable - - - -
Deposits - - - -
Deferred revenue - - - -
Accrued employee wages and leave payable - 232,688 57,461 -
Total liabilities $ - $ 311,681 $ 88,606 $ 11,587
Fund balances
Unreserved, designated for:
Special revenue funds contingency $- $ 734,828 $ 206,201 $ -
Special revenue funds $ 477,844 $ 964,167 $ (17,596) $ 325,404
Total fund balances $ 477,844 $ 1,698,995 $ 188,605 $ 325,404
TOTAL LIABILITIES AND FUND BALANCES $ 477,844 $ 2,010,676 $ 277,211 $ 336,991
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2006
Page 1 of 7
Combining Statements & Schedules, 6-5
2006 Comprehensive Annual Financial Report City of Renton, Washington
PATHS & 1% FOR CABLE COMM. TOTAL
ASSETS TRAILS ART & DEVELOPMENT SRF
Cash & cash equivalents $ 3,027 $ 78,313 $ 108,568 $ 2,762,311
Investments - - 100,000 100,000
Receivables (net of allowances):
Taxes - - - -
Customer accounts - - 1,500 203,009
Accrued interest & penalty - - 6,779 8,212
Due from other funds - - - 62,898
Due from other governmental units - - - 264,479
TOTAL ASSETS $ 3,027 $ 78,313 $ 216,847 $ 3,400,909
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $- $ - $ 31,835 $ 153,082
Taxes payable - - - 478
Retainage payable - - - -
Due to other funds - - - -
Interfund loans payable - - - -
Deposits - - - -
Deferred revenue - - - -
Accrued employee wages and leave payable - - - 290,149
Total liabilities $ - $ - $ 31,835 $ 443,709
Fund balances
Unreserved, designated for:
Special revenue funds contingency $- $ - $ - $ 941,029
Special revenue funds $ 3,027 $ 78,313 $ 185,012 $ 2,016,171
Total fund balances $ 3,027 $ 78,313 $ 185,012 $ 2,957,200
TOTAL LIABILITIES AND FUND BALANCES $ 3,027 $ 78,313 $ 216,847 $ 3,400,909
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2006
Page 2 of 7
Combining Statements & Schedules, 6-6
2006 Comprehensive Annual Financial Report City of Renton, Washington
1997 LGO BOND 1978 LGO BOND GENERAL
ASSETS REDEMPTION REDEMPTION DEBT
Cash & cash equivalents $ 28,648 $ 29,415 $ 924,157
Investments - - 1,000,000
Receivables (net of allowances):
Taxes - - 472,947
Customer accounts - - -
Accrued interest & penalty - - 21,694
Due from other funds - - -
Due from other governmental units - - 2,319
TOTAL ASSETS $ 28,648 $ 29,415 $ 2,421,117
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $ 605 $ - $ 604
Taxes payable - - -
Retainage payable - - -
Due to other funds - - -
Interfund loans payable - - -
Deposits - - -
Deferred revenue - - -
Accrued employee wages and leave payable - - -
Total liabilities $ 605 $ - $ 604
Fund balances
Unreserved. Designated for:
Debt service funds $ 28,043 $ 29,415 2,420,513
Total fund balances $ 28,043 $ 29,415 $ 2,420,513
TOTAL LIABILITIES AND FUND BALANCES $ 28,648 $ 29,415 $ 2,421,117
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2006
Page 3 of 7
Combining Statements & Schedules, 6-7
2006 Comprehensive Annual Financial Report City of Renton, Washington
1989 UGO BOND SPECIAL TOTAL
ASSETS REDEMPTION ASSESSMENT DSF
Cash & cash equivalents $ 585,309 $ - $ 1,567,529
Investments - - 1,000,000
Receivables (net of allowances):
Taxes 12,589 - 485,536
Customer accounts - - -
Accrued interest & penalty - - 21,694
Due from other funds - - -
Due from other governmental units 122 - 2,441
TOTAL ASSETS $ 598,020 $ - $ 3,077,200
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $- $ - $ 1,209
Taxes payable - - -
Retainage payable - - -
Due to other funds - - -
Interfund loans payable - - -
Deposits - - -
Deferred revenue 7,404 - 7,404
Accrued employee leave payable - - -
Total liabilities $ 7,404 $ - $ 8,613
Fund balances
Unreserved reported in:
Debt service funds $ 590,616 $ - $ 3,068,587
Total fund balances $ 590,616 $ - $ 3,068,587
TOTAL LIABILITIES AND FUND BALANCES $ 598,020 $ - $ 3,077,200
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2006
Page 4 of 7
Combining Statements & Schedules, 6-8
2006 Comprehensive Annual Financial Report City of Renton, Washington
DOWNTOWN C.D. IMPACT FIRE IMPACT TRANS. IMPACT
ASSETS PARKING MITIGATION MITIGATION MITIGATION
Cash & cash equivalents $ 178,840 $ 895,404 $ 830,132 $ 2,606,384
Investments - - 350,000 988,386
Receivables (net of allowances):
Taxes - - - -
Customer accounts - - - -
Accrued interest & penalty 14,802 - 23,725 44,101
Due from other funds - - - -
Due from other governmental units - - - -
TOTAL ASSETS $ 193,642 $ 895,404 $ 1,203,857 $ 3,638,871
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $- $ - $ - $ -
Taxes payable - - - -
Retainage payable - - 40,004 -
Due to other funds - - - -
Interfund loans payable - - - -
Deposits - - - -
Deferred revenue - - - -
Accrued employee leave payable - - - -
Total liabilities $ - $ - $ 40,004 $ -
Fund balances
Unreserved, designated for:
Capital projects funds $ 193,642 $ 895,404 $ 1,163,853 $ 3,638,871
Total fund balances $ 193,642 $ 895,404 $ 1,163,853 $ 3,638,871
TOTAL LIABILITIES AND FUND BALANCES $ 193,642 $ 895,404 $ 1,203,857 $ 3,638,871
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2006
Page 5 of 7
Combining Statements & Schedules, 6-9
2006 Comprehensive Annual Financial Report City of Renton, Washington
LEASED AQUATIC GENERAL SO. LK. WA TOTAL
ASSETS PROPERTY CENTER C.I.P. INFRASTRUCTURE CPF
Cash & cash equivalents $ 197,955 $ 191,420 $ 2,667,900 $ 1,936,052 $ 9,504,087
Investments - - 4,935,387 8,000,000 14,273,773
Receivables (net of allowances):
Taxes - - - - -
Customer accounts 476,379 - - - 476,379
Accrued interest & penalty - - 165,166 171,520 419,314
Due from other funds - - - - -
Due from other governmental units - - 1,363,841 2,484,165 3,848,006
TOTAL ASSETS $ 674,334 $ 191,420 $ 9,132,294 $ 12,591,737 $ 28,521,559
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $ 12,514 $ - $ 367,913 $ 934,445 $ 1,314,872
Taxes payable 1,513 - - - 1,513
Retainage payable 1,739 - 266,787 - 308,530
Due to other funds - - 32,038 5,586 37,624
Advances payable to other funds 63,900 - - - 63,900
Deposits 32,981 - - - 32,981
Deferred revenue - - - - -
Accrued employee wages and leave payable 3,815 - - - 3,815
Total liabilities $ 116,462 $ - $ 666,738 $ 940,031 $ 1,763,235
Fund balances
Unreserved, designated for:
Capital projects funds $ 557,872 $ 191,420 $ 8,465,556 $ 11,651,706 $ 26,758,324
Total fund balances $ 557,872 $ 191,420 $ 8,465,556 $ 11,651,706 $ 26,758,324
TOTAL LIABILITIES AND FUND BALANCES $ 674,334 $ 191,420 $ 9,132,294 $ 12,591,737 $ 28,521,559
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2006
Page 6 of 7
Combining Statements & Schedules, 6-10
2006 Comprehensive Annual Financial Report City of Renton, Washington
TOTAL OTHER
TOTAL TOTAL TOTAL GOVERNMENTAL
ASSETS SRF DSF CPF FUNDS
Cash & cash equivalents $ 2,762,311 $ 1,567,529 $ 9,504,087 $ 13,833,927
Investments 100,000 1,000,000 14,273,773 15,373,773
Receivables (net of allowances):
Taxes - 485,536 - 485,536
Customer accounts 203,009 - 476,379 679,388
Accrued interest & penalty 8,212 21,694 419,314 449,220
Due from other funds 62,898 - - 62,898
Due from other governmental units 264,479 2,441 3,848,006 4,114,926
TOTAL ASSETS $ 3,400,909 $ 3,077,200 $ 28,521,559 $ 34,999,668
LIABILITIES AND FUND BALANCES -
Liabilities -
Accounts payable $ 153,082 $ 1,209 $ 1,314,872 $ 1,469,163
Taxes payable 478 - 1,513 1,991
Retainage payable - - 308,530 308,530
Due to other funds - - 37,624 37,624
Interfund loans payable - - 63,900 63,900
Deposits - - 32,981 32,981
Deferred revenue - 7,404 - 7,404
Accrued employee wages and leave payable 290,149 - 3,815 293,964
Total liabilities $ 443,709 $ 8,613 $ 1,763,235 $ 2,215,557
Fund balances
Unreserved, designated for:
Special revenue funds contingency $ 941,029 $ - $ - $ 941,029
Unreserved reported in:
Special revenue funds 2,016,171 - - 2,016,171
Debt service funds - 3,068,587 - 3,068,587
Capital projects funds - - 26,758,324 26,758,324
Total fund balances $ 2,957,200 $ 3,068,587 $ 26,758,324 $ 32,784,111
TOTAL LIABILITIES AND FUND BALANCES $ 3,400,909 $ 3,077,200 $ 28,521,559 $ 34,999,668
Page 7 of 7
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2006
Combining Statements & Schedules, 6-11
2006 Comprehensive Annual Financial Report City of Renton, Washington
ARTERIAL
STREET STREET LIBRARY
REVENUES
Taxes $ - $ 5,342,190 $ 1,768,711
Licenses and permits - 11,107 -
Intergovernmental revenues 512,797 830,715 -
Charges for services - - 5,948
Fines and forfeits - - 45,866
Interfund revenues - 1,051,967 -
Special assessments - - -
Contributions - - 13,814
Interest 21,374 55,010 9,460
Miscellaneous revenues - (358) 71
TOTAL REVENUES $ 534,171 $ 7,290,631 $ 1,843,870
EXPENDITURES
Current:
General government $- $ - $ -
Transportation - 5,097,449 -
Economic environment - - -
Culture & recreation - - 1,759,340
Capital outlay - 1,550,637 -
Debt service:
Principal payment - - -
Interest payment - - -
TOTAL EXPENDITURES $ - $ 6,648,086 $ 1,759,340
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ 534,171 $ 642,545 $ 84,530
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt - - -
Transfer in $ - $ - $ -
Transfer (out)(440,000) - -
Sale of capital assets - 12,040 -
TOTAL OTHER FINANCE SOURCES (USES) $ (440,000) $ 12,040 $ -
NET CHANGE IN FUND BALANCE $ 94,171 $ 654,585 $ 84,530
FUND BALANCE JANUARY 1 $ 383,673 $ 1,044,410 $ 104,075
FUND BALANCE DECEMBER 31 $ 477,844 $ 1,698,995 $ 188,605
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2006
Page 1 of 7
Combining Statements & Schedules, 6-12
2006 Comprehensive Annual Financial Report City of Renton, Washington
HOTEL/ PATHS & 1% FOR CABLE COMM. TOTAL
MOTEL TAX TRAILS ART & DEVELOPMENT SRF
REVENUES
Taxes $ 224,940 $ - $ - $ 70,000 $ 7,405,841
Licenses and permits - - - - 11,107
Intergovernmental revenues - - - - 1,343,512
Charges for services - - - - 5,948
Fines and forfeits - - - - 45,866
Interfund revenues - - - - 1,051,967
Special assessments - - - - -
Contributions 80,000 - - - 93,814
Interest 13,162 123 2,897 6,850 108,876
Miscellaneous revenues - - - 1,500 1,213
TOTAL REVENUES $ 318,102 $ 123 $ 2,897 $ 78,350 $ 10,068,144
EXPENDITURES
Current:
General government $- $ - $ - $ - $ -
Transportation - - - - 5,097,449
Economic environment 294,278 - - - 294,278
Culture & recreation - - - 65,902 1,825,242
Capital outlay - - 12,546 12,215 1,575,398
Debt service:
Principal payment - - - - -
Interest payment - - - - -
TOTAL EXPENDITURES $ 294,278 $ - $ 12,546 $ 78,117 $ 8,792,367
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ 23,824 $ 123 $ (9,649) $ 233 $ 1,275,777
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt - - - - -
Transfer in $ - $ - $ 17,505 $ - $ 17,505
Transfer (out)- - - - (440,000)
Sale of capital assets - - - - 12,040
TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ 17,505 $ - $ (410,455)
NET CHANGE IN FUND BALANCE $ 23,824 $ 123 $ 7,856 $ 233 $ 865,322
FUND BALANCE JANUARY 1 $ 301,580 $ 2,904 $ 70,457 $ 184,779 $ 2,091,878
FUND BALANCE DECEMBER 31 $ 325,404 $ 3,027 $ 78,313 $ 185,012 $ 2,957,200
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2006
Page 2 of 7
Combining Statements & Schedules, 6-13
2006 Comprehensive Annual Financial Report City of Renton, Washington
1997 LGO BOND 1978 LGO BOND GENERAL
REDEMPTION REDEMPTION DEBT
REVENUES
Taxes $ 986,254 $ 21,000 $ 1,451,000
Licenses and permits - - -
Intergovernmental revenues - - -
Charges for services - - -
Fines and forfeits - - -
Interfund revenues - - -
Special assessments - - -
Contributions - - -
Interest 8,954 1,168 133,752
Miscellaneous revenues - - -
TOTAL REVENUES $ 995,208 $ 22,168 $ 1,584,752
EXPENDITURES
Current:
General government $- $ - $ -
Transportation - - -
Economic environment - - -
Culture & recreation - - -
Capital outlay - - -
Debt service:
Principal payment 198,243 12,399 862,708
Interest payment 789,219 8,562 880,720
TOTAL EXPENDITURES $ 987,462 $ 20,961 $ 1,743,428
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ 7,746 $ 1,207 $ (158,676)
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt $- $ - $ -
Transfer in - - 525,000
Transfer (out)- - -
Sale of capital assets - - -
TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ 525,000
NET CHANGE IN FUND BALANCE $ 7,746 $ 1,207 $ 366,324
FUND BALANCE JANUARY 1 $ 20,297 $ 28,208 $ 2,054,189
FUND BALANCE DECEMBER 31 $ 28,043 $ 29,415 $ 2,420,513
Page 3 of 7
AND CHANGES IN FUND BALANCE
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-14
2006 Comprehensive Annual Financial Report City of Renton, Washington
1989 UGO BOND SPECIAL TOTAL
REDEMPTION ASSESSMENT DSF
REVENUES
Taxes $ 506,971 $ - $ 2,965,225
Licenses and permits - - -
Intergovernmental revenues - - -
Charges for services - - -
Fines and forfeits - - -
Interfund revenues - - -
Special assessments - - -
Contributions - - -
Interest 17,338 - 161,212
Miscellaneous revenues - - -
TOTAL REVENUES $ 524,309 $ - $ 3,126,437
EXPENDITURES
Current:
General government $- $ - $ -
Transportation - - -
Economic environment - - -
Culture & recreation - - -
Capital outlay - - -
Debt service:
Principal payment 430,000 - 1,503,350
Interest payment 84,998 - 1,763,499
TOTAL EXPENDITURES $ 514,998 $ - $ 3,266,849
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ 9,311 $ - $ (140,412)
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt $- $ - $ -
Transfer in - - 525,000
Transfer (out)- (68,446) (68,446)
Sale of capital assets - - -
TOTAL OTHER FINANCE SOURCES (USES) $ - $ (68,446) $ 456,554
NET CHANGE IN FUND BALANCE $ 9,311 $ (68,446) $ 316,142
FUND BALANCE JANUARY 1 $ 581,305 $ 68,446 $ 2,752,445
FUND BALANCE DECEMBER 31 $ 590,616 $ - $ 3,068,587
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2006
Page 4 of 7
AND CHANGES IN FUND BALANCE
Combining Statements & Schedules, 6-15
2006 Comprehensive Annual Financial Report City of Renton, Washington
DOWNTOWN C.D. IMPACT FIRE IMPACT TRANS. IMPACT
PARKING MITIGATION MITIGATION MITIGATION
REVENUES
Taxes $ - $ - $ - $ -
Licenses and permits - - - -
Intergovernmental revenues - - - -
Charges for services - 243,714 331,313 546,343
Fines and forfeits - - - -
Interfund revenues - - - -
Special assessments - - - -
Contributions - - - -
Interest 7,857 34,160 55,896 139,400
Miscellaneous revenues - - - -
TOTAL REVENUES $ 7,857 $ 277,874 $ 387,209 $ 685,743
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 $ 7,857 $ 277,874 $ 387,209 $ 685,743
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt $- $ - $ - $ -
Transfer in - - - -
Transfer (out)- - (525,000) (965,000)
Sale of capital assets - - - -
TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ (525,000) $ (965,000)
NET CHANGE IN FUND BALANCE $ 7,857 $ 277,874 $ (137,791) $ (279,257)
FUND BALANCE JANUARY 1 185,785 617,530 1,301,644 3,918,128
FUND BALANCE DECEMBER 31 $ 193,642 $ 895,404 $ 1,163,853 $ 3,638,871
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2006
Page 5 of 7
Combining Statements & Schedules, 6-16
2006 Comprehensive Annual Financial Report City of Renton, Washington
LEASED AQUATIC GENERAL SO. LK. WA TOTAL
PROPERTY CENTER C.I.P. INFRASTRUCTURE CPF
REVENUES
Taxes $ - $ - $ - $ 356,004 $ 356,004
Licenses and permits - - 1,818,813 - 1,818,813
Intergovernmental revenues - - 1,175,765 4,395,864 5,571,629
Charges for services 896,935 - - - 2,018,305
Fines and forfeits - - - - -
Interfund revenues - - - - -
Special assessments - - 511,932 - 511,932
Contributions - - - - -
Interest 12,323 8,410 145,806 399,517 803,369
Miscellaneous revenues - - - - -
TOTAL REVENUES $ 909,258 $ 8,410 $ 3,652,316 $ 5,151,385 $ 11,080,052
EXPENDITURES
Current:
General government $ 443,175 $ - $ - $ - $ 443,175
Transportation - - - - -
Economic environment - - - - -
Culture & recreation - - - - -
Capital outlay - - 8,647,201 7,890,261 16,537,462
Debt service:
Principal payment - - - - -
Interest payment 21,600 - - 344,557 366,157
TOTAL EXPENDITURES $ 464,775 $ - $ 8,647,201 $ 8,234,818 $ 17,346,794
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ 444,483 $ 8,410 $ (4,994,885) $ (3,083,433) $ (6,266,742)
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt $- $ - $ 2,799,500 $ 15,690,529 $ 18,490,029
Transfer in 60,000 - 2,360,390 - 2,420,390
Transfer (out)- - (17,505) (955,390) (2,462,895)
Sale of capital assets - - - - -
TOTAL OTHER FINANCE SOURCES (USES) $ 60,000 $ - $ 5,142,385 $ 14,735,139 $ 18,447,524
NET CHANGE IN FUND BALANCE $ 504,483 $ 8,410 $ 147,500 $ 11,651,706 $ 12,180,782
FUND BALANCE JANUARY 1 53,389 183,010 8,318,056 - 14,577,542
FUND BALANCE DECEMBER 31 $ 557,872 $ 191,420 $ 8,465,556 $ 11,651,706 $ 26,758,324
CAPITAL PROJECT FUNDS
Page 6 of 7
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-17
2006 Comprehensive Annual Financial Report City of Renton, Washington
TOTAL OTHER
TOTAL TOTAL TOTAL GOVERNMENTAL
SRF DSF CPF FUNDS
REVENUES
Taxes $ 7,405,841 $ 2,965,225 $ 356,004 $ 10,727,070
Licenses and permits 11,107 - 1,818,813 1,829,920
Intergovernmental revenues 1,343,512 - 5,571,629 6,915,141
Charges for services 5,948 - 2,018,305 2,024,253
Fines and forfeits 45,866 - - 45,866
Interfund revenues 1,051,967 - - 1,051,967
Special assessments - - 511,932 511,932
Contributions 93,814 - - 93,814
Interest 108,876 161,212 803,369 1,073,457
Miscellaneous revenues 1,213 - - 1,213
TOTAL REVENUES $ 10,068,144 $ 3,126,437 $ 11,080,052 $ 24,274,633
EXPENDITURES
Current:
General government $- $ - $ 443,175 $ 443,175
Transportation 5,097,449 - - 5,097,449
Economic environment 294,278 - - 294,278
Culture & recreation 1,825,242 - - 1,825,242
Capital outlay 1,575,398 - 16,537,462 18,112,860
Debt service:
Principal payment - 1,503,350 - 1,503,350
Interest payment - 1,763,499 366,157 2,129,656
TOTAL EXPENDITURES $ 8,792,367 $ 3,266,849 $ 17,346,794 $ 29,406,010
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ 1,275,777 $ (140,412) $ (6,266,742) $ (5,131,377)
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt $- $ - $ 18,490,029 $ 18,490,029
Transfer in 17,505 525,000 2,420,390 2,962,895
Transfer (out)(440,000) (68,446) (2,462,895) (2,971,341)
Sale of capital assets 12,040 - - 12,040
TOTAL OTHER FINANCE SOURCES (USES) $ (410,455) $ 456,554 $ 18,447,524 $ 18,493,623
NET CHANGE IN FUND BALANCE $ 865,322 $ 316,142 $ 12,180,782 $ 13,362,246
FUND BALANCE JANUARY 1 2,091,878 2,752,445 14,577,542 19,421,865
FUND BALANCE DECEMBER 31 $ 2,957,200 $ 3,068,587 $ 26,758,324 $ 32,784,111
Page 7 of 7
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-18
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGETARY TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Intergovernmental revenues $ 438,000 $ 438,000 $ 501,096 $ 11,701 $ 512,797
Interest 2,000 2,000 21,374 - 21,374
TOTAL REVENUES $ 440,000 $ 440,000 $ 522,470 $ 11,701 $ 534,171
TOTAL EXPENDITURES $ - $ - $ - $ - $ -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ 440,000 $ 440,000 $ 522,470 $ 11,701 $ 534,171
OTHER FINANCING SOURCES (USES)
Transfer (out)$ (440,000) $ (440,000) $ (440,000) $ - $ (440,000)
TOTAL OTHER FINANCE SOURCES (USES) $ (440,000) $ (440,000) $ (440,000) $ - $ (440,000)
NET CHANGE IN FUND BALANCE $ - $ - $ 82,470 $ 11,701 $ 94,171
FUND BALANCE JANUARY 1 $ - $ - $ 592,338 $ (208,665) $ 383,673
FUND BALANCE DECEMBER 31 $ - $ - $ 674,808 $ (196,964) $ 477,844
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - ARTERIAL STREET FUND
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-19
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Taxes $ 4,940,278 $ 4,940,278 $ 5,322,866 $ 19,324 $ 5,342,190
Licenses and permits 26,300 26,300 39,639 (28,532) 11,107
Intergovernmental revenues 788,100 788,100 825,208 5,507 830,715
Interfund revenues 902,000 927,000 1,056,869 (4,902) 1,051,967
Interest 24,400 24,400 55,010 - 55,010
Miscellaneous revenues 57,800 57,800 (504) 146 (358)
TOTAL REVENUES $ 6,738,878 $ 6,763,878 $ 7,299,088 $ (8,457) $ 7,290,631
EXPENDITURES
Current:
Transportation $ 5,186,741 $ 5,186,741 $ 5,045,565 $ 51,884 $ 5,097,449
Capital outlay 1,552,137 1,605,137 1,552,340 (1,703) 1,550,637
TOTAL EXPENDITURES $ 6,738,878 $ 6,791,878 $ 6,597,905 $ 50,181 $ 6,648,086
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ - $ (28,000) $ 701,183 $ (58,638) $ 642,545
OTHER FINANCING SOURCES (USES)
Sale of capital assets $ - $ - $ 13,100 $ (1,060) $ 12,040
TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ 13,100 $ (1,060) $ 12,040
NET CHANGE IN FUND BALANCE $ - $ (28,000) $ 714,283 $ (59,698) $ 654,585
FUND BALANCE JANUARY 1 $ - $ 28,000 $ 1,268,210 $ (223,800) $ 1,044,410
FUND BALANCE DECEMBER 31 $ - $ - $ 1,982,493 $ (283,498) $ 1,698,995
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - STREET FUND
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-20
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Taxes $ 1,768,712 $ 1,768,712 $ 1,768,712 $ (1) $ 1,768,711
Charges for services 6,400 6,400 5,948 - 5,948
Fines and forfeits 30,950 30,950 45,866 - 45,866
Contributions 1,400 1,400 13,814 - 13,814
Interest 2,400 2,400 9,460 - 9,460
Miscellaneous revenues - - 71 - 71
TOTAL REVENUES $ 1,809,862 $ 1,809,862 $ 1,843,871 $ (1) $ 1,843,870
EXPENDITURES
Current:
Culture & recreation $ 1,808,862 $ 1,820,929 $ 1,762,403 $ (3,063) $ 1,759,340
Capital outlay 1,000 1,000 - - -
TOTAL EXPENDITURES $ 1,809,862 $ 1,821,929 $ 1,762,403 $ (3,063) $ 1,759,340
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ - $ (12,067) $ 81,468 $ 3,062 $ 84,530
TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - $ -
NET CHANGE IN FUND BALANCE $ - $ (12,067) $ 81,468 $ 3,062 $ 84,530
FUND BALANCE JANUARY 1 $ - $ 12,067 $ 683,218 $ (579,143) $ 104,075
FUND BALANCE DECEMBER 31 $ - $ - $ 764,686 $ (576,081) $ 188,605
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - LIBRARY FUND
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-21
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Taxes $ 150,000 $ 160,000 $ 218,012 $ 6,928 $ 224,940
Contributions 65,000 77,500 65,000 15,000 80,000
Interest 5,000 5,000 13,162 - 13,162
TOTAL REVENUES $ 220,000 $ 242,500 $ 296,174 $ 21,928 $ 318,102
EXPENDITURES
Current:
Economic environment $ 220,000 $ 302,500 $ 296,305 $ (2,027) $ 294,278
TOTAL EXPENDITURES $ 220,000 $ 302,500 $ 296,305 $ (2,027) $ 294,278
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ - $ (60,000) $ (131) $ 23,955 $ 23,824
TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - $ -
NET CHANGE IN FUND BALANCE $ - $ (60,000) $ (131) $ 23,955 $ 23,824
FUND BALANCE JANUARY 1 $ - $ 60,000 $ 276,258 $ 25,322 $ 301,580
FUND BALANCE DECEMBER 31 $ - $ - $ 276,127 $ 49,277 $ 325,404
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - HOTEL/MOTEL TAX FUND
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-22
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Interest $- $ - $ 123 $ - $ 123
TOTAL REVENUES $ - $ - $ 123 $ - $ 123
TOTAL EXPENDITURES $ - $ - $ - $ - $ -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ - $ - $ 123 $ - $ 123
TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - $ -
NET CHANGE IN FUND BALANCE $ - $ - $ 123 $ - $ 123
FUND BALANCE JANUARY 1 $ - $ - $ 2,905 $ (1) $ 2,904
FUND BALANCE DECEMBER 31 $ - $ - $ 3,028 $ - $ 3,027
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - PATHS AND TRAILS FUND
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-23
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Interest $- $ - $ 2,897 $ - $ 2,897
TOTAL REVENUES $ - $ - $ 2,897 $ - $ 2,897
EXPENDITURES
Capital outlay $ 60,000 $ 60,000 $ 35,440 $ (22,894) $ 12,546
TOTAL EXPENDITURES $ 60,000 $ 60,000 $ 35,440 $ (22,894) $ 12,546
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ (60,000) $ (60,000) $ (32,543) $ 22,894 $ (9,649)
OTHER FINANCING SOURCES (USES)
Transfer in $ 60,000 $ 60,000 $ 17,505 $ - $ 17,505
TOTAL OTHER FINANCE SOURCES (USES) $ 60,000 $ 60,000 $ 17,505 $ - $ 17,505
NET CHANGE IN FUND BALANCE $ - $ - $ (15,038) $ 22,894 $ 7,856
FUND BALANCE JANUARY 1 $ - $ - $ 93,351 $ (22,894) $ 70,457
FUND BALANCE DECEMBER 31 $ - $ - $ 78,313 $ - $ 78,313
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - 1% FOR ART FUND
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-24
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Taxes $ 35,000 $ 35,000 $ 70,000 $ - $ 70,000
Interest 2,400 2,400 3,162 3,688 6,850
Miscellaneous revenues 1,500 1,500 - 1,500 1,500
TOTAL REVENUES $ 38,900 $ 38,900 $ 73,162 $ 5,188 $ 78,350
EXPENDITURES
Current:
Culture & recreation $ 143,900 $ 143,900 $ 47,287 $ 18,615 $ 65,902
Capital outlay - - 12,215 - 12,215
TOTAL EXPENDITURES $ 143,900 $ 143,900 $ 59,502 $ 18,615 $ 78,117
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ (105,000) $ (105,000) $ 13,660 $ (13,427) $ 233
TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - $ -
NET CHANGE IN FUND BALANCE $ (105,000) $ (105,000) $ 13,660 $ (13,427) $ 233
FUND BALANCE JANUARY 1 $ 105,000 $ 105,000 $ 181,689 $ 3,090 $ 184,779
FUND BALANCE DECEMBER 31 $ - $ - $ 195,349 $ (10,337) $ 185,012
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - CABLE COMMUNICATIONS DEVELOPMENT FUND
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-25
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Taxes $ 986,253 $ 986,253 $ 986,253 $ 1 $ 986,254
Interest - - 8,954 - 8,954
TOTAL REVENUES $ 986,253 $ 986,253 $ 995,207 $ 1 $ 995,208
EXPENDITURES
Debt service:
Principal payment 198,000 198,000 198,243 - 198,243
Interest payment $ 792,300 $ 792,300 $ 789,219 $ - $ 789,219
TOTAL EXPENDITURES $ 990,300 $ 990,300 $ 987,462 $ - $ 987,462
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ (4,047) $ (4,047) $ 7,745 $ 1 $ 7,746
TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - $ -
NET CHANGE IN FUND BALANCE $ (4,047) $ (4,047) $ 7,745 $ 1 $ 7,746
FUND BALANCE JANUARY 1 $ 4,047 $ 4,047 $ 20,295 $ 2 $ 20,297
FUND BALANCE DECEMBER 31 $ - $ - $ 28,040 $ 3 $ 28,043
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - 1997 LIMITED GENERAL OBLIGATION BOND REDEMPTION FUND (2001 GO Refund Bonds)
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-26
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Taxes $ 21,000 $ 21,000 $ 21,000 $ - $ 21,000
Interest - - 1,168 - 1,168
TOTAL REVENUES $ 21,000 $ 21,000 $ 22,168 $ - $ 22,168
EXPENDITURES
Debt service:
Principal payment $ 12,400 $ 12,400 $ 12,399 $ - $ 12,399
Interest payment 9,100 9,100 8,562 - 8,562
TOTAL EXPENDITURES $ 21,500 $ 21,500 $ 20,961 $ - $ 20,961
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ (500) $ (500) $ 1,207 $ - $ 1,207
TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - $ -
NET CHANGE IN FUND BALANCE $ (500) $ (500) $ 1,207 $ - $ 1,207
FUND BALANCE JANUARY 1 $ 500 $ 500 $ 28,206 $ 2 $ 28,208
FUND BALANCE DECEMBER 31 $ - $ - $ 29,413 $ 2 $ 29,415
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - 1978 LIMITED GENERAL OBLIGATION BOND REDEMPTION FUND (1997 GO Refunding Bonds)
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-27
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Taxes $ 1,250,000 $ 1,250,000 $ 1,250,000 $ 201,000 $ 1,451,000
Interest 24,400 24,400 109,738 24,014 133,752
TOTAL REVENUES $ 1,274,400 $ 1,274,400 $ 1,359,738 $ 225,014 $ 1,584,752
EXPENDITURES
Debt service:
Principal payment $ 862,700 $ 862,700 $ 862,708 $ - $ 862,708
Interest payment 938,100 938,100 880,720 - 880,720
TOTAL EXPENDITURES $ 1,800,800 $ 1,800,800 $ 1,743,428 $ - $ 1,743,428
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ (526,400) $ (526,400) $ (383,690) $ 225,014 $ (158,676)
OTHER FINANCING SOURCES (USES)
Transfer in 525,000 525,000 525,000 - 525,000
TOTAL OTHER FINANCE SOURCES (USES) $ 525,000 $ 525,000 $ 525,000 $ - $ 525,000
NET CHANGE IN FUND BALANCE $ (1,400) $ (1,400) $ 141,310 $ 225,014 $ 366,324
FUND BALANCE JANUARY 1 $ 1,400 $ 1,400 $ 1,782,235 $ 271,954 $ 2,054,189
FUND BALANCE DECEMBER 31 $ - $ - $ 1,923,545 $ 496,968 $ 2,420,513
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - GENERAL GOVERNMENTAL MISCELLANEOUS DEBT SERVICE FUND
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-28
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Taxes $ 514,100 $ 514,100 $ 507,055 $ (84) $ 506,971
Interest 4,300 4,300 17,216 122 17,338
TOTAL REVENUES $ 518,400 $ 518,400 $ 524,271 $ 38 $ 524,309
EXPENDITURES
Debt service:
Principal payment $ 430,000 $ 430,000 $ 430,000 $ - $ 430,000
Interest payment 88,400 88,400 84,998 - 84,998
TOTAL EXPENDITURES $ 518,400 $ 518,400 $ 514,998 $ - $ 514,998
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ - $ - $ 9,273 $ 38 $ 9,311
TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - $ -
NET CHANGE IN FUND BALANCE $ - $ - $ 9,273 $ 38 $ 9,311
FUND BALANCE JANUARY 1 $ - $ - $ 576,033 $ 5,272 $ 581,305
FUND BALANCE DECEMBER 31 $ - $ - $ 585,306 $ 5,310 $ 590,616
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - 1989 UNLIMITED GENERAL OBLIGATION BOND REDEMPTION FUND (Coulon Park)
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-29
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Special assessments $ 7,000 $ - $ - $ - $ -
Interest 2,500 - - - -
TOTAL REVENUES $ 9,500 $ - $ - $ - $ -
EXPENDITURES
Debt service:
Interest payment $ 32,025 $ - $ - $ - $ -
TOTAL EXPENDITURES $ 32,025 $ - $ - $ - $ -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ (22,525) $ - $ - $ - $ -
OTHER FINANCING SOURCES (USES)
Transfer (out)$- $ (68,000) $ (67,828) $ (618) $ (68,446)
TOTAL OTHER FINANCE SOURCES (USES) $ - $ (68,000) $ (67,828) $ (618) $ (68,446)
NET CHANGE IN FUND BALANCE $ (22,525) $ (68,000) $ (67,828) $ (618) $ (68,446)
FUND BALANCE JANUARY 1 $ 22,525 $ 68,000 $ 77,131 $ (8,685) $ 68,446
FUND BALANCE DECEMBER 31 $ - $ - $ 9,303 $ (9,303) $ -
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - SPECIAL ASSESSMENT DEBT FUND
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-30
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Interest $- $ - $ 7,857 $ - $ 7,857
TOTAL REVENUES $ - $ - $ 7,857 $ - $ 7,857
TOTAL EXPENDITURES $ - $ - $ - $ - $ -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ - $ - $ 7,857 $ - $ 7,857
TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - $ -
NET CHANGE IN FUND BALANCE $ - $ - $ 7,857 $ - $ 7,857
FUND BALANCE JANUARY 1 $ - $ - $ 170,982 $ 14,803 $ 185,785
FUND BALANCE DECEMBER 31 $ - $ - $ 178,839 $ 14,803 $ 193,642
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - DOWNTOWN PARKING GARAGE
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-31
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Charges for services $ 250,000 $ 250,000 $ 243,714 $ - $ 243,714
Interest 5,000 5,000 34,160 - 34,160
TOTAL REVENUES $ 255,000 $ 255,000 $ 277,874 $ - $ 277,874
TOTAL EXPENDITURES $ - $ - $ - $ - $ -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ 255,000 $ 255,000 $ 277,874 $ - $ 277,874
TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - $ -
NET CHANGE IN FUND BALANCE $ 255,000 $ 255,000 $ 277,874 $ - $ 277,874
FUND BALANCE JANUARY 1 $ - $ - $ 617,528 $ 2 $ 617,530
FUND BALANCE DECEMBER 31 $ 255,000 $ 255,000 $ 895,402 $ 2 $ 895,404
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - COMMUNITY DEVELOPMENT IMPACT MITIGATION FUND
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-32
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Charges for services $ 500,000 $ 500,000 $ 331,313 $ - $ 331,313
Interest 25,000 25,000 52,203 3,693 55,896
TOTAL REVENUES $ 525,000 $ 525,000 $ 383,516 $ 3,693 $ 387,209
TOTAL EXPENDITURES $ - $ - $ - $ - $ -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ 525,000 $ 525,000 $ 383,516 $ 3,693 $ 387,209
OTHER FINANCING SOURCES (USES)
Transfer (out)$ (525,000) $ (525,000) $ (525,000) $ - $ (525,000)
TOTAL OTHER FINANCE SOURCES (USES) $ (525,000) $ (525,000) $ (525,000) $ - $ (525,000)
NET CHANGE IN FUND BALANCE $ - $ - $ (141,484) $ 3,693 $ (137,791)
FUND BALANCE JANUARY 1 $ - $ - $ 1,581,613 $ (279,969) $ 1,301,644
FUND BALANCE DECEMBER 31 $ - $ - $ 1,440,129 $ (276,276) $ 1,163,853
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - FIRE IMPACT MITIGATION FUND
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-33
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Charges for services $ 500,000 $ 500,000 $ 546,344 $ (1) $ 546,343
Interest 100,000 100,000 168,833 (29,433) 139,400
TOTAL REVENUES $ 600,000 $ 600,000 $ 715,177 $ (29,434) $ 685,743
TOTAL EXPENDITURES $ - $ - $ - $ - $ -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ 600,000 $ 600,000 $ 715,177 $ (29,434) $ 685,743
OTHER FINANCING SOURCES (USES)
Transfer (out)$ (1,984,800) $ (1,984,800) $ (965,000) $ - $ (965,000)
TOTAL OTHER FINANCE SOURCES (USES) $ (1,984,800) $ (1,984,800) $ (965,000) $ - $ (965,000)
NET CHANGE IN FUND BALANCE $ (1,384,800) $ (1,384,800) $ (249,823) $ (29,434) $ (279,257)
FUND BALANCE JANUARY 1 $ 1,384,800 $ 1,384,800 $ 4,812,106 $ (893,978) $ 3,918,128
FUND BALANCE DECEMBER 31 $ - $ - $ 4,562,283 $ (923,412) $ 3,638,871
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - TRANSPORTATION IMPACT MITIGATION FUND
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-34
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Charges for services $ 904,902 $ 904,902 $ 427,783 $ 469,152 $ 896,935
Interest - - 12,323 - 12,323
TOTAL REVENUES $ 904,902 $ 904,902 $ 440,106 $ 469,152 $ 909,258
EXPENDITURES
Current:
General government $ 645,076 $ 687,892 $ 440,784 $ 2,391 $ 443,175
Capital outlay 116,956 116,956 - - -
Debt service:
Principal payment 120,000 120,000 180,000 (180,000) -
Interest payment 14,400 14,400 25,200 (3,600) 21,600
TOTAL EXPENDITURES $ 896,432 $ 939,248 $ 645,984 $ (181,209) $ 464,775
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ 8,470 $ (34,346) $ (205,878) $ 650,361 $ 444,483
OTHER FINANCING SOURCES (USES)
Transfer in $ - $ - $ - $ 60,000 $ 60,000
TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ 60,000 $ 60,000
NET CHANGE IN FUND BALANCE $ 8,470 $ (34,346) $ (205,878) $ 710,361 $ 504,483
FUND BALANCE JANUARY 1 $ - $ 42,816 $ 356,761 $ (303,372) $ 53,389
FUND BALANCE DECEMBER 31 $ 8,470 $ 8,470 $ 150,883 $ 406,989 $ 557,872
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - LEASED CITY PROPERTIES
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-35
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Interest $- $ - $ 8,410 $ - $ 8,410
TOTAL REVENUES $ - $ - $ 8,410 $ - $ 8,410
TOTAL EXPENDITURES $ - $ - $ - $ - $ -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ - $ - $ 8,410 $ - $ 8,410
TOTAL OTHER FINANCE SOURCES (USES) $ - $ - $ - $ - $ -
NET CHANGE IN FUND BALANCE $ - $ - $ 8,410 $ - $ 8,410
FUND BALANCE JANUARY 1 $ - $ - $ 183,010 $ - $ 183,010
FUND BALANCE DECEMBER 31 $ - $ - $ 191,420 $ - $ 191,420
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - AQUATIC CENTER FUND
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-36
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Taxes $ 2,000,000 $ 2,000,000 $ 4,313,287 $ 200,998 $ 4,514,285
Contributions - - 23,001 - 23,001
Interest 100,000 100,000 541,293 246,810 788,103
TOTAL REVENUES $ 2,100,000 $ 2,100,000 $ 4,877,581 $ 447,808 $ 5,325,389
EXPENDITURES
Current:
Economic environment $ 50,000 $ 50,000 $ 33,969 $ - $ 33,969
Capital outlay 3,127,000 5,169,096 2,920,639 3,683 2,924,322
TOTAL EXPENDITURES $ 3,177,000 $ 5,219,096 $ 2,954,608 $ 3,683 $ 2,958,291
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ (1,077,000) $ (3,119,096) $ 1,922,973 $ 444,125 $ 2,367,098
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt $- $ - $ 180,000 $ (180,000) $ -
Transfer (out)- (402,000) (402,000) (60,000) (462,000)
TOTAL OTHER FINANCE SOURCES (USES) $ - $ (402,000) $ (222,000) $ (240,000) $ (462,000)
NET CHANGE IN FUND BALANCE $ (1,077,000) $ (3,521,096) $ 1,700,973 $ 204,125 $ 1,905,098
FUND BALANCE JANUARY 1 $ 1,077,000 $ 3,521,096 $ 12,928,344 $ 624,571 $ 13,552,915
FUND BALANCE DECEMBER 31 $ - $ - $ 14,629,317 $ 828,696 $ 15,458,013
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - MUNICIPAL FACILITIES CAPITAL IMPROVEMENT FUND
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-37
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Licenses and permits $ 1,600,000 $ 1,600,000 $ 1,818,814 $ (1) $ 1,818,813
Intergovernmental revenues 9,594,400 9,594,400 1,249,587 (73,822) 1,175,765
Special assessments - - - 511,932 511,932
Interest - - 86,040 59,766 145,806
TOTAL REVENUES $ 11,194,400 $ 11,194,400 $ 3,154,441 $ 497,875 $ 3,652,316
EXPENDITURES
Capital outlay $ 18,223,700 $ 22,033,600 $ 8,608,341 $ 38,860 $ 8,647,201
TOTAL EXPENDITURES $ 18,223,700 $ 22,033,600 $ 8,608,341 $ 38,860 $ 8,647,201
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ (7,029,300) $ (10,839,200) $ (5,453,900) $ 459,015 $ (4,994,885)
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt $ 2,978,400 $ 2,978,400 $ 2,799,500 $ - $ 2,799,500
Transfer in 2,424,800 3,380,190 2,360,390 - 2,360,390
Transfer (out)(60,000) (60,000) (17,505) - (17,505)
TOTAL OTHER FINANCE SOURCES (USES) $ 5,343,200 $ 6,298,590 $ 5,142,385 $ - $ 5,142,385
NET CHANGE IN FUND BALANCE $ (1,686,100) $ (4,540,610) $ (311,515) $ 459,015 $ 147,500
FUND BALANCE JANUARY 1 $ 1,686,100 $ 4,540,610 $ 1,199,532 $ 7,118,524 $ 8,318,056
FUND BALANCE DECEMBER 31 $ - $ - $ 888,017 $ 7,577,539 $ 8,465,556
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - GENERAL GOVERNMENT CAPITAL IMPROVEMENT FUND
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-38
2006 Comprehensive Annual Financial Report City of Renton, Washington
ACTUAL BUDGET TO GAAP ACTUAL
BUDGETARY DIFFERENCES GAAP
ORIGINAL FINAL BASIS OVER (UNDER) BASIS
REVENUES
Taxes $ - $ 2,073,626 $ 356,005 $ (1) $ 356,004
Licenses and permits - 268,000 - - -
Intergovernmental revenues - 7,054,314 2,092,867 2,302,997 4,395,864
Charges for services - 978,152 - - -
Interest - - 46,829 352,688 399,517
TOTAL REVENUES $ - $ 10,374,092 $ 2,495,701 $ 2,655,684 $ 5,151,385
EXPENDITURES
Current:
Transportation $ - $ 30,000 $ - $ - $ -
Capital outlay - 23,940,197 7,884,675 5,586 7,890,261
Debt service:
Interest payment - - 344,557 - 344,557
TOTAL EXPENDITURES $ - $ 23,970,197 $ 8,229,232 $ 5,586 $ 8,234,818
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ - $ (13,596,105) $ (5,733,531) $ 2,650,098 $ (3,083,433)
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt $- $ 14,551,495 $ 15,690,529 $- $ 15,690,529
Transfer (out)- (955,390) (955,390) - (955,390)
TOTAL OTHER FINANCE SOURCES (USES) $ - $ 13,596,105 $ 14,735,139 $- $ 14,735,139
NET CHANGE IN FUND BALANCE $ - $ - $ 9,001,608 $ 2,650,098 $ 11,651,706
FUND BALANCE JANUARY 1 $ - $ - $ - $ - $ -
FUND BALANCE DECEMBER 31 $ - $ - $ 9,001,608 $ 2,650,098 $ 11,651,706
BUDGETED AMOUNTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - SOUTH LAKE WASHINGTON INFRASTRUCTURE
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-39
2006 Comprehensive Annual Financial Report City of Renton, Washington
T0TAL
NON-MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
ASSETS
Current assets:
Cash & cash equivalents $ 1,239,662 $ 674,405 $ 1,914,067
Investments at fair value 500,000 250,000 750,000
Receivables (net of allowances):
Customer accounts 10,839 34,690 45,529
Interest - investments 7,296 5,104 12,400
Interfund loan receivable
Due from other governmental units 37,040 13,299 50,339
Inventory of materials and supplies - 46,937 46,937
Total current assets $ 1,794,837 $ 1,024,435 $ 2,819,272
Restricted assets:
Cash & residual investments @FMV $- $ 441,358 $ 441,358
Total restricted assets $- $ 441,358 $ 441,358
Capital assets (net)$ 9,955,619 $ 9,519,549 $ 19,475,168
Deferred charges and other assets - 40,547 40,547
TOTAL ASSETS $ 11,750,456 $ 11,025,889 $ 22,776,345
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
December 31, 2006
Page 1 of 2
Combining Statements & Schedules, 6-40
2006 Comprehensive Annual Financial Report City of Renton, Washington
T0TAL
NON-MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
LIABILITIES
Current liabilities:
Accounts payable $ 46,528 $ 51,002 $ 97,530
Retainage payable 35,409 6,225 41,634
Due to other funds 2,734 5,666 8,400
Accrued interest payable - 13,030 13,030
Accrued employee benefits payable 18,247 33,222 51,469
Accrued taxes payable 18,245 12,013 30,258
Custodial Accounts - 105,783 105,783
Deferred revenue 59,081 - 59,081
Operating leases payable - - -
Total current liabilities $ 180,244 $ 226,941 $ 407,185
Liabilities payable from restricted assets:
Revenue bonds payable - current $- $ 285,000 $ 285,000
Total liabilities payable from restricted assets $- $ 285,000 $ 285,000
Long-term liabilities:
Revenue bonds payable $- $ 2,805,000 $ 2,805,000
Unamortized discounts on revenue bonds - (272,813) (272,813)
Accrued employee wages and benefits payable 19,327 53,890 73,217
Total long-term liabilities $ 19,327 $ 2,586,077 $ 2,605,404
TOTAL LIABILITIES $ 199,571 $ 3,098,018 $ 3,297,589
NET ASSETS
Investment in capital assets,
net of related debt $ 9,955,619 $ 5,865,715 $ 15,821,334
Restricted - 441,358 441,358
Unrestricted 1,595,266 1,620,798 3,216,064
TOTAL NET ASSETS $ 11,550,885 $ 7,927,871 $ 19,478,756
NON-MAJOR ENTERPRISE FUNDS
COMBINING STATEMENT OF NET ASSETS
December 31, 2006
Page 2 of 2
Combining Statements & Schedules, 6-41
2006 Comprehensive Annual Financial Report City of Renton, Washington
T0TAL
NON-MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
OPERATING REVENUES:
Charges for services $ 909,424 $ 2,272,416 $ 3,181,840
Other services 190 - 190
TOTAL OPERATING REVENUES $ 909,614 $ 2,272,416 $ 3,182,030
OPERATING EXPENSES:
Operations and maintenance $ 476,183 $ 1,014,347 $ 1,490,530
Benefit payments 98,172 246,674 344,846
Professional services 46,738 - 46,738
Administrative and general 168,774 284,248 453,022
Insurance 25,300 - 25,300
Taxes 153 10,658 10,811
Depreciation 381,043 267,552 648,595
TOTAL OPERATING EXPENSES $ 1,196,363 $ 1,823,479 $ 3,019,842
OPERATING INCOME (LOSS)$ (286,749) $ 448,937 $ 162,188
NON-OPERATING REVENUES(EXPENSES):
Intergovernmental revenues $ 282,130 $ - $ 282,130
Interest revenues 93,648 65,257 158,905
Gain (loss) on sale of capital assets - 4,009 4,009
Other non-operating revenues(expenses)(61) 7,100 7,039
Interest expense - (167,782) (167,782)
Amortization of debt discount and expense - (65,613) (65,613)
NON-OPERATING REVENUE NET OF EXPENSES $ 375,717 $ (157,029) $ 218,688
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS $ 88,968 $ 291,908 $ 380,876
CHANGE IN NET ASSETS $ 88,968 $ 291,908 $ 380,876
NET ASSETS, JANUARY 1 $ 11,461,917 $ 7,635,963 $ 19,097,880
NET ASSETS, DECEMBER 31 $ 11,550,885 $ 7,927,871 $ 19,478,756
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
NON - MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2006
BUSINESS-TYPE ACTIVITIES
Combining Statements & Schedules, 6-42
2006 Comprehensive Annual Financial Report City of Renton, Washington
T0TAL
NON-MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services $ 1,016,795 $ 2,287,361 $ 3,304,156
Cash paid to suppliers for goods & services (715,295) (1,327,728) (2,043,023)
Cash paid to other funds for goods & services (433) 1,087 654
Cash paid to employees (89,500) (243,850) (333,350)
Other non-operating receipts (61) (156,673) (156,734)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES $ 211,506 $ 560,197 $ 771,703
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds $ 282,130 - $ 282,130 yg
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES $ 282,130 $ - $ 282,130
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets $ (1,404,325) $ (435,895) $ (1,840,220)
Principal payments on debt - (285,000) (285,000)
Interest payments on debt - 13,965 13,965
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES $ (1,404,325) $ (706,930) $ (2,111,255)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for investments $ 988,821 - $ 988,821
Interest on investments 125,188 $ 74,958 200,146
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES $ 1,114,009 $ 74,958 $ 1,188,967
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS $ 203,320 $ (71,775) $ 131,545
CASH & CASH EQUIVALENTS, JANUARY 1 $ 1,036,342 $ 746,180 $ 1,782,522
CASH & CASH EQUIVALENTS, DECEMBER 31 $ 1,239,662 $ 674,405 $ 1,914,067
BUSINESS-TYPE ACTIVITIES
ENTERPRISE FUNDS
STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2006
Page 1 of 2
Combining Statements & Schedules, 6-43
2006 Comprehensive Annual Financial Report City of Renton, Washington
TOTAL
NON-MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)$ (286,749) $ 448,937 $ 162,188
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization of
deferred charges 381,043 267,552 648,595
Other non-operating revenue (61) (156,673) (156,734)
(Increase) decrease in
accounts receivable 136,121 16,414 152,535
(Increase) decrease in due from
other funds/governmental units (29,334) (13,299) (42,633)
(Increase) decrease in inventory
& prepaid items 6,164 6,164
Increase (decrease) in vouchers
retainage payable (16,017) (16,017)
Increase (decrease) in due to
other governmental units (433) 1,087 654
Increase (decrease) in payables
& other short-term liabilities 11,878 (13,484) (1,606)
Increase (decrease) in
customer deposits 16,692 16,692
Increase (decrease) in
deferred revenues (9,631) (9,631)
Increase (decrease) in accrued
employee leave benefits 8,672 2,824 11,496
Total adjustments $ 498,255 $ 111,260 $ 609,515
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES $ 211,506 $ 560,197 $ 771,703
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Depreciation & amortization 378,315 $ 332,557 $ 710,872
Increase in fair value of investments 2,821 - 2,821
ENTERPRISE FUNDS
BUSINESS-TYPE ACTIVITIES
STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2006
Page 2 of 2
Combining Statements & Schedules, 6-44
2006 Comprehensive Annual Financial Report City of Renton, Washington
TOTAL
EQUIPMENT INSURANCE INTERNAL
RENTAL FUND SERVICE FUNDS
ASSETS
Current assets:
Cash & cash equivalents $ 2,689,454 $ 5,582,117 $ 8,271,571
Investments at fair value 2,850,000 6,680,000 9,530,000
Receivables (net of allowances):
Customer accounts 13,570 16,949 30,519
Interest - investments 67,526 173,501 241,027
Due from other governmental units - 1,876 1,876
Prepayments 103,044 2,994 106,038
Total current assets $ 5,723,594 $ 12,457,437 $ 18,181,031
Property, plant, and equipment:
Capital assets (net)$ 5,317,155 $ - $ 5,317,155
Total property, plant, and equipment $ 5,317,155 $ - $ 5,317,155
Deferred charges and other assets
TOTAL ASSETS $ 11,040,749 $ 12,457,437 $ 23,498,186
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2006
Page 1 of 2
Combining Statements & Schedules, 6-45
2006 Comprehensive Annual Financial Report City of Renton, Washington
TOTAL
EQUIPMENT INSURANCE INTERNAL
RENTAL FUND SERVICE FUNDS
LIABILITIES
Current liabilities:
Accounts payable $ 336,786 $ 791,742 $ 1,128,528
Due to other funds - 7,855 7,855
Accrued employee benefits payable 32,292 12,793 45,085
Accrued taxes payable 616 - 616
Total current liabilities $ 369,694 $ 812,390 $ 1,182,084
Long-term liabilities:
Accrued employee wages and benefits payable $ 160,090 $ 154,370 $ 314,460
Claims incurred but not reported - 2,627,782 2,627,782
Total long-term liabilities $ 160,090 $ 2,782,152 $ 2,942,242
TOTAL LIABILITIES $ 529,784 $ 3,594,542 $ 4,124,326
NET ASSETS
Investment in capital assets,
Net of related debt $ 5,317,155 $ - $ 5,317,155
Unrestricted 5,193,810 8,862,895 14,056,705
TOTAL NET ASSETS $ 10,510,965 $ 8,862,895 $ 19,373,860
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2006
Page 2 of 2
Combining Statements & Schedules, 6-46
2006 Comprehensive Annual Financial Report City of Renton, Washington
TOTAL
EQUIPMENT INSURANCE INTERNAL
RENTAL FUND SERVICE FUNDS
OPERATING REVENUES:
Charges for services $ 6,488,654 $ 2,961,036 $ 9,449,690
Other operating revenues - 7,901,626 7,901,626
TOTAL OPERATING REVENUES $ 6,488,654 $ 10,862,662 $ 17,351,316
OPERATING EXPENSES:
Operations and maintenance $ 1,180,332 $ 163,363 $ 1,343,695
Benefit payments 1,545,118 9,373,232 10,918,350
Professional services 382,620 274,768 657,388
Administrative and general 1,426,804 65,677 1,492,481
Insurance 246,500 1,913,018 2,159,518
Depreciation 870,624 6,215 876,839
TOTAL OPERATING EXPENSES $ 5,651,998 $ 11,796,273 $ 17,448,271
OPERATING INCOME (LOSS)$ 836,656 $ (933,611) $ (96,955)
NON-OPERATING REVENUES (EXPENSES):
Intergovernmental revenues 11,163 - 11,163
Interest revenues $ 220,451 $ 460,841 $ 681,292
Gain (loss) on sale of capital assets 86,244 - 86,244
Other non-operating revenues (expenses)6,691 452,198 458,889
NON-OPERATING REVENUE NET OF EXPENSE $ 324,549 $ 913,039 $ 1,237,588
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS $ 1,161,205 $ (20,572) $ 1,140,633
Transfers in (out)$ 402,000 $ 272,000 $ 674,000
CHANGE IN NET ASSETS $ 1,563,205 $ 251,428 $ 1,814,633
NET ASSETS, JANUARY 1 $ 8,947,760 $ 8,611,467 $ 17,559,227
NET ASSETS, DECEMBER 31 $ 10,510,965 $ 8,862,895 $ 19,373,860
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2006
Combining Statements & Schedules, 6-47
2006 Comprehensive Annual Financial Report City of Renton, Washington
TOTAL
EQUIPMENT INSURANCE INTERNAL
RENTAL FUND SERVICE FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services $ 6,491,575 $ 10,850,728 $ 17,342,303
Cash paid to suppliers for goods & services (1,356,746) (1,975,044) (3,331,790)
Cash paid to employees (1,417,395) (9,023,007) (10,440,402)
Other operating receipts (1,470,270) 200,770 (1,269,500)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES $ 2,247,164 $ 53,447 $ 2,300,611
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds $- $ 272,000 $ 272,000
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES $ - $ 272,000 $ 272,000
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets $ (1,153,134) $ - $ (1,153,134)
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES $ (1,153,134) $ - $ (1,153,134)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for investments $- $ (394,871) $ (394,871)
Interest on investments 225,558 484,595 710,153
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES $ 225,558 $ 89,724 $ 315,282
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS $ 1,319,588 $ 415,171 $ 1,734,759
CASH & CASH EQUIVALENTS, JANUARY 1 $ 1,369,866 $ 5,166,946 $ 6,536,812
CASH & CASH EQUIVALENTS, DECEMBER 31 $ 2,689,454 $ 5,582,117 $ 8,271,571
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2006
Page 1 of 2
Combining Statements & Schedules, 6-48
2006 Comprehensive Annual Financial Report City of Renton, Washington
TOTAL
EQUIPMENT INSURANCE INTERNAL
RENTAL FUND SERVICE FUNDS
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)$ 836,656 $ (933,611) $ (96,955)
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization of
deferred charges 870,624 6,215 876,839
Other non-operating revenue 92,935 452,198 545,133
(Increase) decrease in
accounts receivable 2,921 (11,934) (9,013)
(Increase) decrease in due from
other funds/governmental units 6,725 (1,876) 4,849
(Increase) decrease in inventory
& prepaid items (10,928) 6 (10,922)
Increase (decrease) in vouchers
retainage payable 309,756 185,615 495,371
Increase (decrease) in payables
& other short-term liabilities (176) 6,615 6,439
Increase (decrease) in accrued
employee leave benefits 138,651 350,219 488,870
Total adjustments $ 1,410,508 $ 987,058 $ 2,397,566
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES $ 2,247,164 $ 53,447 $ 2,300,611
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Depreciation & amortization 870,624 6,215 876,839
For the Year Ended December 31, 2006
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
Page 2 of 2
Combining Statements & Schedules, 6-49
2006 Comprehensive Annual Financial Report City of Renton, Washington
BEGINNING ENDING
BALANCE DEBITS CREDITS BALANCE
ASSETS
Cash $ 366,137 $ 136,021,157 135,915,772 $ 471,522
TOTAL ASSETS $ 366,137 $ 136,021,157 $ 135,915,772 $ 471,522
LIABILITIES
Vouchers & contacts payable $ 12,042 $ 105,744,955 105,813,293 $ 80,380
Accrued employee benefits 1,180 49,787,486 49,786,306 -
Deposits payable 352,915 344,713 382,940 391,142
TOTAL LIABILITIES $ 366,137 $ 155,877,154 $ 155,982,539 $ 471,522
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND - SPECIAL DEPOSIT
For the Year Ended December 31, 2006
Page 1 of 1
Combining Statements & Schedules, 6-50
2006 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-1
STATISTICAL SECTION
December 31, 2006
Presentations included in the Statistical Section of the Comprehensive Annual Financial Report
(CAFR) provide users detailed information as a context for understanding what the information
in the financial statements, note disclosures and the supporting schedules say about the
government’s overall financial health. The section is divided into five categories based on the
following:
FINANCIAL TRENDS
These schedules contain trend information to help the reader understand how the government’s
financial performance and well-being have changed over time.
REVENUE CAPACITY
These schedules present information to help the reader assess the government’s most significant
local revenue source – property tax.
DEBT CAPACITY
These schedules present information to help the reader assess the affordability of the
government’s current levels of outstanding debt and the government’s ability to issue additional
debt in the future.
DEMOGRAPHIC AND ECONOMIC INFORMATION
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the government’s financial activities take place.
OPERATING INFORMATION
These schedules contain service and infrastructure data to help the reader understand how the
information in the government’s financial report relates to the services the government provides
and the activities it performs.
2006 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-2
This page is intentionally left blank.
2006 Comprehensive Annual Financial Report City of Renton, Washington
20031 2004 2005 2006
Governmental activities
Invested in capital assets, net of related debt 89,360,313$ 195,282,055$ 203,297,293$ 209,964,556$
Restricted 6,816,559 21,460,395 28,578,305 42,261,663
Unrestricted 41,699,232 25,746,196 29,272,573 29,340,290
Total governmental activities net assets 137,876,104$ 242,488,646$ 261,148,171$ 281,566,509$
Business-type activities
Invested in capital assets, net of related debt 158,886,497$ 163,891,546$ 171,827,746$ 181,515,939$
Restricted 3,048,210 3,555,690 3,555,690 3,555,690
Unrestricted 15,886,887 21,612,156 21,541,563 19,357,695
Total business-type activities net assets 177,821,594$ 189,059,392$ 196,924,999$ 204,429,324$
Primary government
Invested in capital assets, net of related debt 248,246,810$ 359,173,601$ 375,125,039$ 391,480,495$
Restricted 9,864,769 25,016,085 32,133,995 45,817,353
Unrestricted 57,586,119 47,358,352 50,814,136 48,697,985
Total primary government net assets 315,697,698$ 431,548,038$ 458,073,170$ 485,995,833$
1First Year of Net Assets by Component
Source : City of Renton, Finance & IS Deparrtment
FISCAL YEAR
TABLE 1
NET ASSETS BY COMPONENT
LAST THREE FISCAL YEARS
(Accrual basis of accounting)
Statistical Section, 7-3
2006 Comprehensive Annual Financial Report City of Renton, Washington
20031 2004 2005 2006
EXPENSES
Government activities:
General government 24,365,244$ 22,144,567$ 21,137,856$ 19,977,086$
Judicial 1,258,956 1,340,655 1,380,816 1,434,134
Security of persons and property 26,238,548 28,647,443 29,496,791 30,749,762
Physical environment 2,013,239 2,278,445 2,208,340 2,618,832
Transportation 4,221,713 6,797,356 4,183,880 15,798,138
Economic development 5,886,795 5,519,929 5,899,796 6,372,118
Mental and physical health 21,646 228,966 300,171 295,072
Culture and recreation 8,689,666 10,303,074 9,744,692 9,695,924
Interest on long-term debt 1,827,464 1,627,581 1,710,346 1,772,370
Total governmental activities expenses 74,523,271$ 78,888,016$ 76,062,688$ 88,713,436$
Business-type activities:
Water 22,381,464$ 23,347,678$ 25,884,227$ 27,220,132
Airport 1,219,465 936,305 1,226,810 1,196,363
Solid Waste 8,516,598 8,558,441 9,327,525 9,706,016
Golf 1,831,670 1,933,113 2,132,077 2,056,874
Total business-type activities net assets 33,949,197$ 34,775,537$ 38,570,639$ 40,179,385$
Total primary government expenses 108,472,468$ 113,663,553$ 114,633,327$ 128,892,821$
PROGRAM REVENUES
Government activities:
Charges for services:
General government charges 16,716,472$ 15,579,366$ 17,525,244$ 21,852,465$
Judicial 1,287,901 1,531,773 697,883 831,485
Security of persons and property 929,780 200,149 247,235 517,151
Physical environment 759,700 837,027 894,750 400,798
Transportation 1,519,383 1,916,862 1,660,698 1,628,154
Economic environment 4,969,475 4,236,596 4,516,899 4,368,399
Culture and recreation 1,460,879 1,507,387 1,558,458 1,742,071
Operating grants and contributions 3,732,443 6,213,791 4,979,601 4,596,836
Capital grants and contributions 1,094,764 1,745,718 1,227,503 5,909,870
Total governmental activities program revenues 32,470,797$ 33,768,669$ 33,308,271$ 41,847,229$
Business-type activities:
Charges for services:
Business-type charges 37,077,258$ 38,917,114$ 40,029,830$ 40,056,079$
Operating grants and contributions 222,193 112,616 196,974 77,688
Capital grants and contributions 6,600,471 6,583,241 5,101,699 6,317,203
Total business-type activities program revenues 43,899,922$ 45,612,971$ 45,328,503$ 46,450,970$
Total primary government program revenues 76,370,719$ 79,381,640$ 78,636,774$ 88,298,199$
Net (expense)/revenue
Governmental activities (42,052,474)$ (45,119,347)$ (42,754,417)$ (46,866,207)$
Business-type activities 9,950,725 10,837,434 6,757,864 6,271,585
Total primary government net expense (32,101,749)$ (34,281,913)$ (35,996,553)$ (40,594,622)$
FISCAL YEAR
LAST THREE FISCAL YEARS
CHANGES IN NET ASSETS
TABLE 2
(Accrual basis of accounting)
Page 1 of 2
Statistical Section, 7-4
2006 Comprehensive Annual Financial Report City of Renton, Washington
20031 2004 2005 2006
GENERAL REVENUES AND OTHER CHANGES
IN NET ASSETS
Governmental activities:
Taxes
Property taxes 19,520,575$ 19,578,390$ 21,523,818$ 23,600,131$
Sales taxes 17,334,831 18,281,949 18,910,823 20,869,595$
Business taxes 10,895,130 9,957,129 10,643,068 11,219,303$
Other taxes 5,449,877 6,751,264 6,938,265 7,718,945$
Penalties and interest 5,415 6,048 49 3,799$
Investment earnings 1,081,398 1,291,669 1,449,001 3,251,975$
Miscellaneous 312,867 4,346,619 1,958,217 689,243$
Transfers (40,000) (10,304) (9,300) (68,446)
Total governmental activities 54,560,093$ 60,202,764$ 61,413,941$ 67,284,545$
Business-type activities:
Investment earnings 242,055 270,605 458,797 881,486
Miscellaneous 369,513 119,455 639,646 282,808
Transfers 40,000 10,304 9,300 68,446
Total business-type activities 651,568$ 400,364$ 1,107,743$ 1,232,740$
Total primary government 55,211,661$ 60,603,128$ 62,521,684$ 68,517,285$
CHANGES IN NET ASSETS
Governmental activities 12,507,619$ 15,083,417$ 18,659,524$ 20,418,338$
Business-type activities 10,602,293 11,237,798 7,865,607 7,504,325
Total primary government 23,109,912$ 26,321,215$ 26,525,131$ 27,922,663$
1First Year of Changes in Net Assets
Source: City of Renton, Finance & IS Department
FISCAL YEAR
Page 2 of 2
(Accrual basis of accounting)
TABLE 2
CHANGES IN NET ASSETS
LAST THREE FISCAL YEARS
Statistical Section, 7-5
2006 Comprehensive Annual Financial Report City of Renton, Washington
1997 1998 1999 2000 2001
General fund
Reserved 87,000$ 87,000$ 83,000$ 311,673$ 318,053$
Unreserved 6,291,113 4,555,713 5,381,222 8,025,332 6,428,315
Total general fund 6,378,113$ 4,642,713$ 5,464,222$ 8,337,005$ 6,746,368$
All other governmental funds
Reserved -$ -$ -$ -$ 920,000$
Unreserved, reported in:
Special revenue funds 8,999,135 9,037,183 2,890,947 3,898,265 4,938,021
Debt service funds 2,919,630 2,325,340 2,987,015 2,653,495 2,546,129
Capital project funds 17,694,301 18,663,675 21,682,591 23,570,741 29,133,681
Total all other governmental funds 29,613,066$ 30,026,198$ 27,560,553$ 30,122,501$ 37,537,831$
Source : City of Renton, Finance & IS Department
TABLE 3
(Accrual basis of accounting)
FUND BALANCE OF GOVERNMENT FUNDS
LAST TEN FISCAL YEARS
FISCAL YEAR
Page 1 of 2
General fund
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
General
Statistical Section, 7-6
2006 Comprehensive Annual Financial Report City of Renton, Washington
2002 2003 2004 2005 2006
General fund
Reserved 83,000$ 83,000$ 108,742$ 8,000$ 8,000$
Unreserved 3,920,136 6,758,364 8,603,003 9,189,871 10,737,097
Total general fund 4,003,136$ 6,841,364$ 8,711,745$ 9,197,871$ 10,745,097$
All other governmental funds
Reserved 1,260,000$ 880,000$ 500,000$ 240,000$ 63,900$
Unreserved, reported in:
Special revenue funds 3,361,529 3,985,917 3,238,246 2,929,692 4,243,189
Debt service funds 2,030,335 1,916,243 1,486,894 2,752,445 3,068,587
Capital project funds 33,742,638 22,628,512 26,202,437 27,890,457 42,152,437
Total all other governmental funds 40,394,502$ 29,410,672$ 31,427,577$ 33,812,594$ 49,528,113$
(Accrual basis of accounting)
FUND BALANCE OF GOVERNMENT FUNDS
LAST TEN FISCAL YEARS
TABLE 3
Page 2 of 2
FISCAL YEAR
All other governmental funds
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
All other governmental
Statistical Section, 7-7
2006 Comprehensive Annual Financial Report City of Renton, Washington
1997 1998 1999 2000 2001
REVENUES
Taxes 40,050,814$ 41,722,051$ 44,397,793$ 47,827,013$ 50,218,530$
Licenses and permits 3,935,350 4,146,167 3,780,303 4,562,892 4,065,518
Intergovernmental 7,391,617 9,078,690 5,637,817 6,793,084 6,129,103
Charges for services 5,548,215 7,785,760 7,157,860 7,805,409 7,301,538
Fines 733,561 722,054 831,327 937,689 993,093
Interfund revenues - - - - -
Special assessments 393,961 516,929 689,931 352,648 333,056
Contributions 800,000 1,974,897 91,383 64,092 191,877
Interest 2,250,016 2,626,519 2,129,455 2,307,978 2,583,931
Miscellaneous 608,217 555,701 682,625 727,465 1,231,574
Total revenues 61,711,751$ 69,128,768$ 65,398,494$ 71,378,270$ 73,048,220$
EXPENDITURES
General government 8,675,215$ 9,915,676$ 10,058,875$ 10,858,538$ 11,193,462$
Security of persons and property 19,249,622 20,074,074 21,300,403 22,889,748 23,569,864
Physical environment 1,708,461 1,730,735 1,892,541 1,769,642 1,878,956
Transportation 9,899,119 10,985,484 10,706,833 10,330,362 13,885,329
Economic and physical development 3,414,034 4,060,970 3,814,967 4,337,239 4,484,526
Mental and physical health 7,570 10,962 8,486 8,599 6,756
Culture and recreation 5,592,278 5,804,099 6,166,358 6,606,662 7,263,056
Capital outlay 15,359,691 13,712,159 11,002,950 7,450,837 5,359,801
Debt service
Principal 2,273,896 2,032,436 2,707,994 2,481,026 2,086,447
Interest 1,525,725 1,381,069 1,345,588 1,205,281 882,748
Total expenditures 67,705,611$ 69,707,664$ 69,004,995$ 67,937,934$ 70,610,945$
Excess of revenues
over (under) expenditures (5,993,860)$ (578,896)$ (3,606,501)$ 3,440,336$ 2,437,275$
OTHER FINANCING SOURCES (USES)
Transfers in 6,683,875$ 6,244,003$ 4,670,101$ 3,694,498$ 6,850,944$
Transfers out (7,856,758) (7,413,375) (4,587,778) (3,662,809) (8,873,294)
Other financing sources (uses) (238,549)
Proceeds of long-term debt 16,141,643 - 38,990 - 6,023,484
Interfund loan proceeds - - 448,000 823,000 363,800
Interfund loan repayments - - (448,000) (823,000) (363,800)
Funds remitted to bond trustee (1,410,279)
Capital leases - - - - -
Sale of capital assets 197,757 362,890 563,283 1,403,688 61,685
Total other financing
sources (uses) 13,517,689$ (806,482)$ 684,596$ 1,435,377$ 4,062,819$
Net change in fund balances 7,523,829$ (1,385,378)$ (2,921,905)$ 4,875,713$ 6,500,094$
Debt service as a percentage of noncapital
expenditures 7.26% 6.10% 6.99% 6.09% 4.55%
Source : City of Renton, Finance & IS Department
FISCAL YEAR
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Page 1 of 2
TABLE 4
CHANGES IN FUND BALANCES OF GOVERNMENT FUNDS
Statistical Section, 7-8
2006 Comprehensive Annual Financial Report City of Renton, Washington
2002 2003 2004 2005 2006
REVENUES
Taxes 49,901,849$ 53,722,322$ 55,344,506$ $58,794,081 64,005,567
Licenses and permits 4,229,501 4,226,883 4,329,086 4,686,608 4,962,507
Intergovernmental 6,212,359 4,533,544 7,570,570 5,687,169 9,769,225
Charges for services 7,777,778 6,016,704 6,593,153 5,563,289 6,543,289
Fines 1,043,199 1,055,564 1,008,984 731,286 906,685
Interfund revenues - 3,482,110 3,638,574 3,796,042 2,843,147
Special assessments 312,908 295,673 20,852 23,340 511,932
Contributions 118,103 255,102 249,938 317,600 214,387
Interest 1,073,538 1,081,420 1,059,886 1,060,353 2,570,682
Miscellaneous 1,198,846 40,314 122,799 569,881 $223,908
Total revenues 71,868,081$ 74,709,636$ 79,938,348$ 81,229,649$ 92,551,329$
EXPENDITURES
General government 12,523,577$ 13,283,955$ 13,660,095$ 14,382,634$ 13,972,592
Security of persons and property 24,924,380 26,029,354 27,462,613 29,031,626 31,157,303
Physical environment 1,898,665 2,015,562 2,201,777 2,190,228 2,609,452
Transportation 10,622,373 4,461,387 4,615,345 4,711,924 5,097,449
Economic and physical development 4,479,582 4,613,587 4,947,080 5,123,024 5,519,219
Mental and physical health 11,445 10,368 11,723 12,700 9,231
Culture and recreation 7,382,069 7,585,936 8,563,967 8,876,250 9,933,854
Capital outlay 10,532,479 21,089,534 13,246,669 11,438,104 21,117,525
Debt service
Principal 1,849,269 1,417,042 1,477,579 1,375,738 1,503,350
Interest 1,382,717 1,833,102 1,763,893 1,713,525 2,129,656
Total expenditures 75,606,556$ 82,339,827$ 77,950,741$ 78,855,753$ 93,049,631$
Excess of revenues
over (under) expenditures (3,738,475)$ (7,630,191)$ 1,987,607$ 2,373,896$ (498,302)
OTHER FINANCING SOURCES (USES)
Transfers in 9,441,451$ 3,511,700$ 6,563,978$ 5,476,360$ 2,962,895
Transfers out (10,009,962) (3,551,700) (7,764,278) (5,443,660) (3,705,341)
Other financing sources (uses)
Proceeds of long-term debt 3,879,038 - - - 18,490,029
Interfund loan proceeds 860,000 - - -
Interfund loan repayments (860,000) - - -
Funds remitted to bond trustee
Capital leases - - - -
Sale of capital assets 104,825 171,249 117,328 464,547 13,464
Total other financing
sources (uses) 3,415,352$ 131,249$ (1,082,972)$ 497,247$ 17,761,047$
Net change in fund balances (323,123)$ (7,498,942)$ 904,635$ 2,871,143$ 17,262,745$
Debt service as a percentage of noncapital
expenditures 4.97% 5.31% 5.01% 4.58% 5.05%
FISCAL YEAR
(Accrual basis of accounting)
LAST TEN FISCAL YEARS
Page 2 of 2
CHANGES IN FUND BALANCES OF GOVERNMENT FUNDS
TABLE 4
Statistical Section, 7-9
2006 Comprehensive Annual Financial Report City of Renton, Washington
PENALTY /
ADMISSION / INTEREST
FISCAL PROPERTY SALES UTILITY EXCISE DELINQUENT
YEAR TAX TAX TAX TAX TAX TOTAL
1997 14,231,754 13,438,839 7,351,853 3,161,912 3,352 38,187,709
1998 14,524,083 14,948,815 7,645,323 4,336,307 1,036 41,455,565
1999 15,659,424 15,282,981 8,289,865 4,831,792 1,217 44,065,280
2000 16,397,638 16,585,478 9,788,167 4,724,682 8,462 47,504,428
2001 16,794,636 16,724,787 11,105,722 5,066,122 1,939 49,693,206
2002 18,373,237 16,431,456 9,798,260 4,711,446 4,404 49,318,803
2003 19,587,986 17,334,831 10,895,131 5,449,877 5,415 53,273,240
2004 19,886,805 18,281,949 9,957,130 6,751,265 6,048 54,883,197
2005 21,826,229 18,910,822 10,643,068 6,938,264 49 58,318,433
2006 23,600,131 20,869,596 11,219,302 7,718,945 3,799 63,411,773
Source: City of Renton, Finance & IS Department
TABLE 5
GENERAL GOVERNMENT TAX REVENUE BY SOURCE
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
TAX REVENUES BY SOURCE
1997 - 2006
$0
$20
$40
$60
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Mi
l
l
i
o
n
s
o
f
D
o
l
l
a
r
s
Penalty/Delinquent
Excise
Business
Sales and Use
Property
Statistical Section, 7-10
2006 Comprehensive Annual Financial Report City of Renton, Washington
% OF TOTAL % OF TOTAL
TAXABLE1 TAXABLE TAXABLE TAXABLE
ASSESSED ASSESSED ASSESSED ASSESSED
TAXPAYER VALUE RANK VALUE VALUE RANK VALUE
Boeing 629,784,603 1 7.52% 736,036,584 1 20.30%
Paccar 116,317,925 2 1.39% 89,191,285 2 2.46%
Puget Sound Energy-Elec/Gas 80,829,517 3 0.97% 71,182,509 3 1.96%
Providence Health 57,902,300 4 0.69%
AMB Property Corp. 49,479,200 5 0.59%
Renton Properties LLC 36,993,300 6 0.44%
Qwest Corporation 30,371,972 7 0.36% 33,233,915 5 0.92%
BRE Properties 30,005,710 8 0.36%
Wal Mart 28,566,077 9 0.34%
Axis Grand Holdings: 28,549,000 10 0.34%
(formerly HSC Real Estate Inc.)
Renton Building 1-7 38,242,800 4 1.05%
Fred Meyer Stores Inc. 22,997,426 6 0.63%
Renton Village Assoc. 17,323,900 7 0.48%
Sunpointe Associates Ltd 15,333,300 8 0.42%
Renton Talbot Delaware 14,569,000 9 0.40%
Blackner JVLLC 11,735,000 10 0.32%
All Others 7,282,002,201 86.99% 2,575,756,045 71.04%
Total Assessed Valuation 8,370,801,805$ 100.00% 3,625,601,764$ 100.00%
Source: 1King County Department of Assessments
TABLE 6
PRINCIPAL PROPERTY TAX PAYERS
2006 1997
December 31, 2006
Statistical Section, 7-11
2006 Comprehensive Annual Financial Report City of Renton, Washington
FISCAL
YEAR PERSONAL PROPERTY
ENDED RESIDENTIAL COMMERCIAL
DECEMBER 31 PROPERTY PROPERTY OTHER
1997 2,978,575,856 N/A 647,025,908
1998 3,099,917,868 N/A 725,191,466
1999 3,543,075,457 N/A 715,425,293
2000 2,958,443,598 2,368,630,142 714,803,819
2001 1,703,991,595 2,613,181,185 745,490,732
2002 2,810,986,787 2,008,043,209 774,850,492
2003 2,314,794,930 2,921,180,100 747,879,276
2004 2,598,762,769 3,057,577,700 716,313,413
2005 2,823,407,473 3,217,655,000 656,709,434
2006 3,734,771,858 3,415,317,348 636,713,076
12000 is the first year when breakdown is available
2The tax exempt real property value is not available for the last ten years
Source: King County Department of Assessments
LAST TEN FISCAL YEARS
TABLE 7
ASSESSED VALUE OF TAXABLE PROPERTY
REAL PROPERTY
Page 1 of 2
Total Taxable Assessed Value
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Year
As
s
e
s
s
e
d
V
a
l
u
e
(
m
i
l
l
i
o
n
s
)
Taxable Assessed Value
Statistical Section, 7-12
2006 Comprehensive Annual Financial Report City of Renton, Washington
FISCAL TOTAL
YEAR TOTAL DIRECT
ENDED ASSESSED TAX
DECEMBER 31 VALUE RATE
1997 3,625,601,764$ 3.988
1998 3,825,109,334$ 3.896
1999 4,258,500,750$ 3.747
2000 6,041,877,559$ 3.684
2001 5,062,663,512$ 3.375
2002 5,593,880,488$ 3.354
2003 5,983,854,306$ 3.277
2004 6,372,653,882$ 3.327
2005 6,697,771,907$ 3.227
2006 7,786,802,282$ 3.116
TABLE 7
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Page 2 of 2
Direct Tax Rate
-
0.500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Year
Ra
t
e
Direct Tax Rate
Statistical Section, 7-13
2006 Comprehensive Annual Financial Report City of Renton, Washington
Debt Total Debt Total
Fiscal Operating Service City Operating Service County
Year Millage Millage Millage Millage Millage Millage
1997 3.60000 0.38781 3.98781 1.75898 0.37275 2.13173
1998 3.55000 0.34608 3.89608 1.50586 0.34523 1.85109
1999 3.42726 0.31981 3.74707 1.51957 0.25428 1.77385
2000 3.39877 0.28488 3.68365 1.39802 0.29149 1.68951
2001 3.27385 0.10078 3.37463 1.47266 0.26981 1.74247
2002 3.26036 0.09397 3.35433 1.19751 0.25198 1.44949
2003 3.18871 0.08865 3.27736 1.15386 0.19562 1.34948
2004 3.16022 0.08322 3.24344 1.18279 0.24867 1.43146
2005 3.14843 0.07861 3.22704 1.15665 0.22564 1.38229
2006 3.04482 0.07088 3.11570 1.09915 0.22954 1.32869
Source: King County Codes and Levies
* Special Districts include Emergency Medical Services, Port and Hospital districts
CITY OF RENTON COUNTY
DIRECT RATES OVERLAPPING RATES
LAST TEN FISCAL YEARS
Page 1 of 2
TABLE 8
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
-
0.50000
1.00000
1.50000
2.00000
2.50000
3.00000
3.50000
4.00000
M i l l a g e
19
9
7
19
9
8
19
9
9
20
0
0
20
0
1
20
0
2
20
0
3
20
0
4
20
0
5
20
0
6
Year
Direct Property Tax Rates
Statistical Section, 7-14
2006 Comprehensive Annual Financial Report City of Renton, Washington
Total
Debt Total Total Direct &
Fiscal Special Operating Service School Overlapping Overlapping
Year Districts *Millage Millage Millage Rates Rates
1997 0.69220 2.09865 1.05164 3.15029 5.97422 9.96203
1998 0.42400 2.11248 1.37974 3.49222 5.76731 9.66339
1999 0.68252 1.87903 1.90387 3.78290 6.23927 9.98634
2000 0.60714 1.85286 1.80111 3.65397 5.95062 9.63427
2001 0.53526 1.74147 1.62522 3.36669 5.64442 9.01905
2002 0.53599 1.63516 1.47772 3.11288 5.09836 8.45269
2003 0.59292 1.62358 1.36333 2.98691 4.92931 8.20667
2004 0.58319 1.60492 1.88086 3.48578 5.50043 8.74387
2005 0.57542 1.62332 2.36918 3.99250 5.95021 9.17725
2006 1.04312 1.53290 2.42680 3.95970 6.33151 9.44721
SCHOOL DISTRICT
OVERLAPPING RATES
LAST TEN FISCAL YEARS
TABLE 8
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
Page 2 of 2
-
1.00000
2.00000
3.00000
4.00000
5.00000
6.00000
7.00000
Mi
l
l
a
g
e
19
9
7
19
9
8
19
9
9
20
0
0
20
0
1
20
0
2
20
0
3
20
0
4
20
0
5
20
0
6
Year
Overlapping Property Tax Rates
Statistical Section, 7-15
2006 Comprehensive Annual Financial Report City of Renton, Washington
FISCAL
YEAR TOTAL TAX
ENDED LEVY FOR
DECEMBER 31 FISCAL YEAR AMOUNT % OF LEVY
1997 14,167,346 13,970,125 98.6%
1998 14,719,382 14,511,118 98.6%
1999 15,850,628 15,595,427 98.4%
2000 16,633,388 16,337,790 98.2%
2001 16,967,683 16,677,882 98.3%
2002 18,581,814 18,285,908 98.4%
2003 19,486,858 19,149,258 98.3%
2004 20,451,011 20,184,238 98.7%
2005 21,654,069 21,358,689 98.6%
2006 22,796,225 22,339,299 98.0%
Sources:
1 Annual Tax Receivable Summary
2 2006 Annual Property Tax Reports from King County
COLLECTED WITHIN THE 1
FISCAL YEAR OF THE LEVY
Page 1 of 2
TABLE 9
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Levies vs Collections
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
TOTAL TAX
TOTAL COLLECTIONS TO DATE
Statistical Section, 7-16
2006 Comprehensive Annual Financial Report City of Renton, Washington
FISCAL
YEAR COLLECTIONS 2
ENDED IN SUBSEQUENT
DECEMBER 31 YEARS AMOUNT % OF LEVY
1997 197,217 14,167,342 100.0%
1998 208,264 14,719,382 100.0%
1999 254,790 15,850,217 100.0%
2000 291,580 16,629,370 100.0%
2001 282,509 16,960,391 100.0%
2002 281,900 18,567,808 99.9%
2003 332,060 19,481,318 100.0%
2004 234,434 20,418,671 99.8%
2005 240,042 21,598,731 99.7%
2006 22,339,299 98.0%
TOTAL COLLECTIONS TO DATE
Page 2 of 2
TABLE 9
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Property tax collections
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Collections within fiscal yr
Collections in subsequent years
Statistical Section, 7-17
2006 Comprehensive Annual Financial Report City of Renton, Washington
1997 1998 1 1999 2000 2001
FUNCTION
RETAIL TRADE SECTOR
Furniture $873,707 N/A $1,245,207 $1,564,002 $1,920,734
Electronics and Appliances
General Merchandise 404,771 N/A 560,413 581,268 643,592
Misc Retail Trade 482,771 N/A 586,594 713,017 704,420
Others 1,373,238 N/A 1,495,038 1,641,879 1,608,082
Subtotal Retail $3,134,487 $3,128,884 $3,887,252 $4,500,166 $4,876,828
OTHER SECTORS
Construction $1,865,804 $1,913,356 $1,545,886 $1,671,621 $2,060,061
Manufacturing 643,122 710,983 411,607 348,439 426,965
Transportation 534,482 516,572 614,603 768,421 648,177
Wholesale 1,559,964 1,601,399 1,692,718 1,643,207 1,535,709
Automotive 2,761,201 2,840,747 3,446,262 3,775,582 3,307,794
Services 1,770,179 1,770,069 2,063,272 2,128,373 1,913,630
Miscellaneous 307,273 302,535 467,401 428,379 574,268
Subtotal - Other Sectors $9,442,025 $9,655,661 $10,241,749 $10,764,022 $10,466,604
Total Sales Tax $12,576,512 $12,784,544 $14,129,001 $15,264,188 $15,343,432
1 The detail information for the Retail sector for 1998 is not available
Source: Finance Department, City of Renton
SALES TAX COLLECTIONS BY SECTOR
LAST TEN FISCAL YEARS
TABLE 10
FISCAL YEAR
Page 1 of 2
Sales Tax Collections by Sector
1997-2001
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
1997 1998 1999 2000 2001
Retail
Construction
Manufacturing
Transportation
Wholesale
Automotive
Services
Miscellaneous
Statistical Section, 7-18
2006 Comprehensive Annual Financial Report City of Renton, Washington
2002 2003 2004 2005 2006
FUNCTION
RETAIL TRADE SECTOR
Furniture $1,623,906 $1,758,082 $2,205,114 $1,203,942 $1,276,644
Electronics and Appliances 1,065,416 1,130,621
General Merchandise 673,164 788,699 1,013,876 1,073,144 1,100,217
Misc Retail Trade 681,148 763,596 862,919 848,834 928,083
Others 1,622,166 1,667,483 1,651,782 2,227,721 2,464,896
Subtotal Retail $4,600,384 $4,977,860 $5,733,691 $6,419,057 $6,900,461
OTHER SECTORS
Construction $1,899,005 $2,122,560 $2,641,907 $2,495,684 $2,688,902
Manufacturing 547,333 754,501 556,555 569,269 797,166
Transportation 621,314 563,863 628,918 494,866 567,401
Wholesale 1,451,387 1,442,263 1,416,559 1,025,132 1,016,468
Automotive 3,549,973 3,625,878 3,538,502 3,946,163 4,303,221
Services 1,835,039 1,953,254 1,677,315 1,736,569 2,039,090
Miscellaneous 546,400 567,225 460,372 421,715 378,233
Subtotal - Other Sectors $10,450,451 $11,029,544 $10,920,128 $10,689,398 $11,790,482
Total Sales Tax $15,050,835 $16,007,404 $16,653,819 $17,108,455 $18,690,943
TABLE 10
SALES TAX COLLECTIONS BY SECTOR
LAST TEN FISCAL YEARS
FISCAL YEAR
Page 2 of 2
Sales Tax Collections by Sector
2002-2006
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2002 2003 2004 2005 2006
Retail
Construction
Manufacturing
Transportation
Wholesale
Automotive
Services
Miscellaneous
Statistical Section, 7-19
2006 Comprehensive Annual Financial Report City of Renton, Washington
BUSINESS-TYPE ACTIVITIES
GENERAL SPECIAL
FISCAL OBLIGATION ASSESSMENT ENTERPRISE PWTF
YEAR BONDS BONDS BONDS LOANS
1997 30,121,269 1,835,000 29,940,000 7,691,547
1998 24,486,738 1,335,000 28,580,000 9,245,358
1999 26,466,763 680,000 26,860,000 9,024,460
2000 24,345,738 320,000 25,020,000 8,645,788
2001 29,289,290 135,000 23,070,000 7,894,357
2002 33,797,023 - 31,230,000 8,222,135
2003 32,245,982 - 29,070,000 7,579,447
2004 30,629,403 - 37,680,000 8,350,304
2005 29,107,664 - 35,790,000 11,581,168
2006 45,584,314 - 33,840,000 10,692,020
Source: City of Renton, Finance & IS Department
1The percentage of personal Income column is based on personal income of King County. (See table 16)
GOVERNMENTAL ACTIVITIES
Page 1 of 2
LAST TEN FISCAL YEARS
RATIOS OF OUTSTANDING DEBT BY TYPE
TABLE 11
2006
Primary Government Debt
GO Bonds
38%
PWTF Loans
15%
Enterprise
Bonds
47%
Statistical Section, 7-20
2006 Comprehensive Annual Financial Report City of Renton, Washington
BUSINESS-
TYPE
ACTIVITIES PERCENTAGE1
TOTAL PRIMARY OF
FISCAL CAPITAL GOVERNMENT PERSONAL DEBT PER
YEAR LEASES DEBT INCOME POPULATION CAPITA
1997 123,947 69,713,760 12.08% 45,920 1,518
1998 82,095 63,731,189 9.73% 46,270 1,377
1999 42,276 63,075,498 8.64% 47,620 1,325
2000 86,609 58,420,135 7.56% 50,052 1,167
2001 45,656 60,436,304 7.86% 51,140 1,182
2002 7,238 73,258,398 9.40% 53,840 1,361
2003 58,105 68,955,537 8.78% 54,900 1,256
2004 33,834 76,695,545 8.75% 55,360 1,385
2005 8,621 76,489,458 N/A 56,840 1,346
2006 24,500 90,140,834 N/A 58,360 1,545
Page 2 of 2
TABLE 11
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Primary Government Debt
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Years
Total Debt
Statistical Section, 7-21
2006 Comprehensive Annual Financial Report City of Renton, Washington
1997 1998 1999 2000 2001
Debt Limit 271,920,132$ 319,387,557$ 319,387,556$ 340,899,076$ 379,698,131$
Total net debt applicable to limit 28,936,990 26,958,807 24,462,390 22,248,983 27,586,389
Legal debt margin 242,983,142$ 292,428,750$ 294,925,166$ 318,650,093$ 352,111,742$
Total net debt applicable to the limit
as a percentage of debt limit 10.64% 8.44% 7.66% 6.53% 7.27%
Source: City of Renton, Finance & IS Department
LAST TEN FISCAL YEARS
TABLE 12
LEGAL DEBT MARGIN INFORMATION
Page 1 of 2
FISCAL YEAR
Statistical Section, 7-22
2006 Comprehensive Annual Financial Report City of Renton, Washington
2002 2003 2004 2005 2006
Debt Limit 419,541,037$ 448,787,441$ 477,947,409$ 502,332,893$ 550,085,741$
Total net debt applicable to limit 32,258,499 28,173,327 28,137,536 26,423,667 42,515,728
Legal debt margin 387,282,538$ 420,614,114$ 449,809,873$ 475,909,226$ 507,570,013$
Total net debt applicable to the limit
as a percentage of debt limit 7.69% 6.28% 5.89% 5.26% 7.73%
LEGAL DEBT MARGIN CALCULATION FOR FISCAL YEAR 2006
Assessed Value 7,334,476,542$
Add back: exempt real property -
Total assessed value 7,334,476,542$
Debt Limit
2.5% of general purpose limit, voted and non-voted 183,361,914
2.5% Utility purpose limit, voted 183,361,914
2.5% Open Space, Park and Capital facilities, voted 183,361,914
Total Debt Limit 550,085,741$
Debt applicable to limit:
General obligation bonds 45,534,501$
Contracts Payable 49,813
45,584,314$
Less: Amount set aside for repayment of
general obligation debt and contracts payable (3,068,586)
Total net debt applicable to limit 42,515,728$
Legal Debt Margin 507,570,013$
LAST TEN FISCAL YEARS
TABLE 12
LEGAL DEBT MARGIN INFORMATION
Page 2 of 2
FISCAL YEAR
Statistical Section, 7-23
2006 Comprehensive Annual Financial Report City of Renton, Washington
LESS: NET % OF GO
GENERAL 1 AMOUNTS1 GENERAL DEBT TO
FISCAL OBLIGATION AVAILABLE OBLIGATION ASSESSED2 ASSESSED PER
YEAR BONDS IN DEBT DEBT VALUE VALUE CAPITA
1997 30,121,269 1,641,090 28,480,179 3,625,601,764 0.79% 620
1998 24,486,738 1,590,425 22,896,313 3,825,109,334 0.60% 495
1999 26,466,763 2,345,570 24,121,193 4,258,500,750 0.57% 507
2000 24,345,738 2,096,755 22,248,983 4,514,205,078 0.49% 445
2001 29,289,290 1,770,724 27,518,566 4,988,126,362 0.55% 538
2002 33,797,023 1,540,203 32,256,820 5,549,470,895 0.58% 599
2003 32,245,982 1,879,654 30,366,328 5,959,258,370 0.51% 553
2004 30,629,403 1,440,509 29,188,894 6,333,995,426 0.46% 527
2005 29,107,664 2,683,999 26,423,665 6,697,750,147 0.39% 465
2006 45,584,314 3,068,587 42,515,727 7,334,476,542 0.58% 729
Source:
1 Finance Department, City of Renton
2 King County Department of Assessments
TABLE 13
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
$-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
General Obligation Debt
GO Bond Debt
Statistical Section, 7-24
2006 Comprehensive Annual Financial Report City of Renton, Washington
ESTIMATED
ESTIMATED2 SHARE OF
DEBT 1 % OVERLAPPING
GOVERNMENTAL UNIT OUTSTANDING APPLICABLE DEBT
City of Renton Direct Debt 45,584,314$ 100% 45,584,314$
City of Renton Overlapping Debt
King County 862,538,000 2.80% 24,151,064
Port of Seattle 416,645,000 2.80% 11,666,060
Renton School District #403 238,476,299 56.54% 134,834,499
Issaquah School District #411 223,109,320 1.40% 3,123,530
Kent School District #415 239,430,209 0.0005% 1,197
Fire District 10-1 950,670 0.4051% 3,851
King County Library 80,429,703 0.49% 394,106
City of Renton Overlapping Debt 174,174,308$
Total Direct and Overlapping Debt 219,758,622$
Sources:
1 King County Department of Executive Services
2 King County Department of Assessments
TABLE 14
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
City of Renton Direct and Overlapping Debt
Renton-$29.02
County-$24.3
Port-$10.3
Schools-
$118.6
Others - $0.32
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
Mi
l
l
i
o
n
s
o
f
D
o
l
l
a
r
s
``
Statistical Section, 7-25
2006 Comprehensive Annual Financial Report City of Renton, Washington
TABLE 15
EXPENSES NET REVENUE
FISCAL (a) W/O AVAILABLE FOR (b)
YEAR REVENUE DEPRECIATION DEBT SERVICE PRINCIPAL INTEREST COVERAGE
WATER AND SEWER REVENUE BONDS:
1997 21,337,411 14,580,175 6,757,236 1,660,000 1,474,986 2.16
1998 21,597,100 14,877,435 6,719,665 1,765,000 1,377,342 2.14
1999 21,784,310 16,407,442 5,376,868 1,810,000 1,333,452 1.71
2000 23,682,511 15,653,774 8,028,737 1,630,000 1,112,778 2.93
2001 21,994,245 16,051,720 5,942,525 1,730,000 1,019,923 2.16
2002 24,045,660 17,495,472 6,550,188 1,805,000 928,303 2.40
2003 25,934,120 16,990,519 8,943,601 1,635,000 1,282,115 3.07
2004 27,301,230 18,325,863 8,975,367 1,475,000 1,010,268 3.61
2005 27,889,360 18,892,824 8,996,536 1,630,000 1,477,124 2.90
2006 27,750,508 18,850,225 8,900,283 1,680,000 1,430,199 2.86
GOLF COURSE REVENUE BONDS (c):
1997 2,090,510 1,270,849 819,661 150,000 305,783 1.80
1998 2,109,506 1,355,669 753,837 155,000 298,658 1.66
1999 2,252,217 1,278,489 973,728 280,000 157,548 2.23
2000 2,328,044 1,320,681 1,007,363 210,000 227,222 2.30
2001 2,375,997 1,480,024 895,973 220,000 219,348 2.04
2002 2,279,361 1,415,674 863,687 225,000 210,548 1.98
2003 2,177,122 1,573,296 603,826 235,000 201,210 1.38
2004 2,198,597 1,460,445 738,152 250,000 191,223 1.67
2005 2,208,335 1,657,294 551,041 260,000 180,348 1.25
2006 2,337,672 1,725,854 611,818 270,000 168,778 1.39
Notes:
(a) Revenue includes connection charges, system development charges, latecomer fees, and interest revenue.
(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 & IS Department
REVENUE BOND COVERAGE FOR WATER AND SEWER AND GOLF SYSTEM BONDS
LAST TEN FISCAL YEARS
DEBT SERVICE
WATER/SEWER & GOLF COURSE REVENUE BONDS
2.86
1.39
2.16
2.402.14
1.71
2.932.16
3.07
3.61
2.90
1.66
2.30
1.80
2.23 2.04 1.98
1.38
1.67
1.25
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
YEARS
CO
V
E
R
A
G
E
R
A
T
I
O
WATER/SEWER
GOLF COURSE
Statistical Section, 7-26
2006 Comprehensive Annual Financial Report City of Renton, Washington
PER CAPITA UN-
PERSONAL PERSONAL SCHOOL EMPLOYMENT
INCOME b INCOME c MEDIAN ENROLLMENT e RATE f
FISCAL
YEAR
KING
COUNTY RENTON KING COUNTY KING COUNTY AGEd
CITY OF
RENTON KING COUNTY
1997 1,659,106 45,920 57,707,202,000 34,253 35.00 12,266 4.1%
1998 1,686,266 46,270 65,485,103,000 38,241 35.26 12,513 4.0%
1999 1,712,122 47,620 72,997,198,000 42,218 35.50 12,557 3.8%
2000 1,737,046 50,052 77,271,598,000 44,438 35.70 12,527 4.1%
2001 1,758,312 51,140 76,883,017,000 43,842 35.92 12,556 5.1%
2002 1,774,312 53,840 77,940,608,000 44,313 36.13 12,892 6.1%
2003 1,779,300 54,900 78,534,839,000 44,482 36.38 13,046 6.2%
2004 1,788,300 55,360 87,617,622,000 49,286 36.60 13,062 5.2%
2005 1,808,300 56,840 N/A N/A 36.83 13,192 4.7%
2006 1,835,300 58,360 N/A N/A 36.93 13,397 4.2%
Sources:
a Washington State Office of Financial Management
b U.S. Bureau of Economic Analysis.
c U.S. Bureau of Economic Analysis.
d Washington State Office of Financial Management
e Renton Public Schools
f Washington State Employment Security Department
POPULATION a
TABLE 16
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
UNEMPLOYMENT
RATE
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
UNEMPLOYMENT RATE
Statistical Section, 7-27
2006 Comprehensive Annual Financial Report City of Renton, Washington
EMPLOYER EMPLOYEES 1 RANK
% OF TOTAL
CITY
EMPLOYMENT EMPLOYEES RANK
% OF TOTAL
CITY
EMPLOYMENT
The Boeing Company 11,942 1 29.38% 19,613 1 45.50%
Valley Medical Center 2,346 2 5.77% 1,397 2 3.24%
PACCAR Inc. 1,749 3 4.30% 1,204 3 2.79%
Renton School District #403 1,353 4 3.33% 655 5 1.52%
Federal Aviation Administration 860 5 2.12% 1,127 4 2.61%
City of Renton 620 6 1.53% 639 6 1.48%
ER Solutions, Inc. 428 7 1.05%
Young's - Columbia of Washington, LLC 402 8 0.99%
Wal-Mart 378 9 0.93% 274 10 0.64%
IKEA 361 10 0.89%
Multiple Zones International Inc.610 7 1.42%
Wizards of the Coast 419 8 0.97%
Kay Smith Business 276 9 0.64%
20,439 50.28% 26,214 60.81%
Source: 1Business license records and individual queries
Note: The table does not include non-profit organizations.
The 2006 FTE count for the City of Renton does not include temporary employees.
PRINCIPAL EMPLOYERS
TABLE 17
2006 1997
Statistical Section, 7-28
2006 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-29
This page is intentionally left blank.
2006 Comprehensive Annual Financial Report City of Renton, Washington
1997 1998 1999 2000 2001
FUNCTION
General Government 81.6 82.6 85.1 90.1 93.5
Public Safety
Police
Commissioned Officers 86.0 86.0 85.0 85.0 86.0
Non-Commissioned Officers 31.2 31.2 34.2 34.2 36.2
Fire
Commissioned Officers 97.0 100.0 103.0 105.0 105.0
Non-Commissioned Officers 10.0 10.0 10.0 11.0 11.0
Planning/Building/Public Works
Administration/Development Services 37.5 42.2 43.2 42.7 42.7
Transportation Systems 32.0 31.0 32.0 33.0 33.0
Utility Systems 18.9 22.2 20.2 20.7 20.8
Maintenance Services 58.0 58.0 59.5 59.5 61.0
Culture and Recreation
Parks and Recreation 77.2 77.5 77.5 78.5 80.5
Library 15.0 15.0 15.0 15.0 15.0
Golf Course 9.0 9.0 9.0 9.0 10.0
Total 553.4 564.7 573.7 583.7 594.7
Source: City of Renton, Finance & IS Department
LAST TEN FISCAL YEARS
Page 1 of 2
TABLE 18
FULL TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
FISCAL YEAR
Statistical Section, 7-30
2006 Comprehensive Annual Financial Report City of Renton, Washington
2002 2003 2004 2005 2006
FUNCTION
General Government 97.5 96.5 97.5 94.5 89.5
Public Safety
Police
Commissioned Officers 88.0 88.0 89.0 91.0 97.0
Non-Commissioned Officers 40.2 40.2 41.2 43.2 42.2
Fire
Commissioned Officers 105.0 105.0 106.0 106.0 106.0
Non-Commissioned Officers 12.0 12.0 13.0 13.0 14.0
Planning/Building/Public Works
Administration/Development Services 42.7 42.7 42.7 42.5 46.5
Transportation Systems 34.0 33.0 34.5 34.5 35.5
Utility Systems 20.8 20.8 20.8 20.8 24.8
Maintenance Services 61.0 62.0 62.0 62.0 64.1
Culture and Recreation
Parks and Recreation 77.5 77.5 77.5 76.5 76.5
Library 15.0 15.0 15.0 14.0 14.0
Golf Course 10.0 10.0 10.0 10.0 10.0
Total 603.7 602.7 609.2 608.0 620.0
LAST TEN FISCAL YEARS
Page 2 of 2
TABLE 18
FULL TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
FISCAL YEAR
Statistical Section, 7-31
2006 Comprehensive Annual Financial Report City of Renton, Washington
1997 1998 1999 2000 2001
FUNCTION
Police
Physical arrests 1,939 1,860 2,287 2,463 3,411
Parking violations 5,170 4,240 3,379 5,955 6,325
Traffic violations 11,300 12,248 11,832 12,188 10,936
Fire
Number of calls answered 7,210 7,808 7,698 7,895 8,273
Inspections 1,856 1,880 2,021 2,265 2,269
Highways and Streets
Street resurfacing (miles) 4.56 1.15 4.65 1.76 6.54
Recyclables collected (tons/yr) 4,613.1 4,855.6 5,045.7 5,493.8 5,793.6
Culture and Recreation
Athletic field attendence 82,739 82,879 86,527 87,000 119,422
Community Center admissions 183,627 154,327 148,041 156,500 174,500
Library
Volume in collections 163,298 144,685 153,935 147,818 148,758
Total volumes borrowed 313,407 310,996 334,619 352,334 382,443
Water
Metered connection 13,212 13,595 14,279 14,224 13,969
Average daily consumption 7,159 7,554 7,426.5 7,457 7,097
(thousands of gallons)
Peak daily consumption 13,841 15,177 11,472 13,590 11,960
(thousands of gallons)
Source: City of Renton Departments
FISCAL YEAR
TABLE 19
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Page 1 of 2
Statistical Section, 7-32
2006 Comprehensive Annual Financial Report City of Renton, Washington
2002 2003 2004 2005 2006
FUNCTION
Police
Physical arrests 3,813 3,735 4,280 4,590 2,489
Parking violations 4,776 2,742 3,733 3,575 3,520
Traffic violations 11,448 11,651 10,963 12,866 10,172
Fire
Number of calls answered 8,233 8,582 8,984 9,202 10,096
Inspections 2,261 2,681 2,539 3,438 3,505
Highways and Streets
Street resurfacing (miles) 6.13 4.85 3.67 3.69 3.86
Recyclables collected (tons/yr) 5,119.8 4,389.0 4,920.3 4,934.2 4,843
Culture and Recreation
Athletic field participants 126,534 137,811 156,707 155,000 155,000
Community Center participants 162,970 172,911 172,537 177,761 177,761
Library
Volume in collections 155,463 158,676 165,406 190,011 193,965
Total volumes borrowed 456,982 499,792 512,059 491,470 464,333
Water
Metered connection 14,583 15,181 15,379 16,585 16,668
Average daily consumption 7,232 7,581 7,635 7,306 7,999
(thousands of gallons)
Peak daily consumption 12,477 14,080 14,248 13,025 15,271
(thousands of gallons)
FISCAL YEAR
TABLE 19
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Page 2 of 2
Statistical Section, 7-33
2006 Comprehensive Annual Financial Report City of Renton, Washington
1997 1998 1999 2000 2001
FUNCTION
Police safety
Police:
Stations 1.0 1.0 1.0 1.0 1.0
Patrol units 6.0 6.0 7.0 7.0 7.0
Fire stations 5.0 5.0 5.0 5.0 5.0
Highways and streets
Street (miles) 190.1 190.1 180.6 195.4 195.6
Streetlights (added) 94.0 24.0 46.0 69.0 75.0
Culture and recreation
Parks acreage 1,158.0 1,158.0 1,158.0 1,158.0 1,158.0
Parks 25.0 27.0 28.0 28.0 26.0
Swimming pools - - - - -
Tennis courts 17.0 17.0 17.0 17.0 17.0
Community centers 1.0 1.0 1.0 1.0 1.0
Water
Water mains (miles) 243.9 248.6 252.2 278.0 283
Fire hydrants 2,763 2,839 2,893 2,993 3,102
Sewer
Sanitary sewers (miles) 167.4 169.1 170.9 162.6 168.1
Storm sewers (miles) 173.0 177.9 180.9 183.8 189.7
Source: City of Renton Departments
FISCAL YEAR
TABLE 20
CAPITAL ASSETS STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Page 1 of 2
Statistical Section, 7-34
2006 Comprehensive Annual Financial Report City of Renton, Washington
2002 2003 2004 2005 2006
FUNCTION
Police safety
Police:
Stations 1.0 1.0 1.0 1.0 1.0
Patrol units 7.0 7.0 7.0 7.0 7.0
Fire stations 5.0 5.0 5.0 5.0 5.0
Highways and streets
Street (miles) 213.2 213.7 213.7 218.0 224.6
Streetlights 53.0 120.0 92.0 86.0 134.0
Culture and recreation
Parks acreage 1,158.0 1,158.0 1,158.0 1,158.0 1,160.0
Parks 26.0 26.0 26.0 26.0 26.0
Swimming pools - - 1.0 1.0 1.0
Tennis courts 17.0 17.0 17.0 17.0 17.0
Community centers 1.0 1.0 1.0 1.0 1.0
Water
Water mains (miles) 289.0 291.0 291.1 293.0 295.0
Fire hydrants 3,193 3,240 3,274 3,374 3,440
Sewer
Sanitary sewers (miles) 176.7 183.5 189.6 193.3 204.9
Storm sewers (miles) 199.4 204.0 209.7 214.8 219.7
Page 2 of 2
FISCAL YEAR
TABLE 20
CAPITAL ASSETS STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Statistical Section, 7-35
2006 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-36
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