HomeMy WebLinkAbout2007 CAFRY
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CITY OF RENTON
2007
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For Year Ended December 31, 2007
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
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
Jill Masunaga, Senior Finance Analyst
Tracy Schuld, Accounting Supervisor
Vidya Vinod, Finance Analyst III
Tina Hemphill, Finance Analyst III
Hai Nguyen, Finance Analyst 11
Nancy Violante, Financial Services Manager
Cindy Zinck, Financial Services Manager
Administrative Assistant
Mary Roy
Print & Mail Coordinator
Karl Hurst
Form/Graphic Technician
Beth Haglund
TABLE OF CONTENTS
DECEMBER 31, 2007
ITEM PAGE
INTRODUCTORY SECTION
Letterof Transmittal............................................................................................................................... 1-1
2006 Comprehensive Annual Financial Report Award............................................................................1-7
Corporate Organization Structure & Reporting Relations........................................................................1-8
FINANCIAL SECTION
IndependentAuditor's Report.............................................................................................................2-1
Management Discussion and Analysis.................................................................................................. 3-1
Basic Financial Statements:
Government -wide Financial Statements:
Statementof Net Assets.................................................................................................................... 4-1
Statementof Activities...................................................................................................................... 4-2
Fund Statements
Government Fund Financial Statements:
BalanceSheet.............................................................................................................................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:
Statementof Net Assets............................................................................................................
4-12
Statement of Revenues, Expenses, and Changes in Fund Balances ............................................
4-14
Statementof 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
Note4: Property Taxes...............................................................................................................4-33
Note 5: Capital Assets and Depreciation.....................................................................................
4-35
Note6: Pensions.........................................................................................................................
4-37
Note 7: Other Post Employment Benefits....................................................................................
4-47
Note8: Contingencies................................................................................................................
4-47
Note9: Risk Management..........................................................................................................
4-48
Note 10: Interfund Transactions...................................................................................................
4-50
Note11: Net Assets......................................................................................................................4-52
Note 12: Prior Year Restatements.................................................................................................4-53
Note13: Short Term Debt............................................................................................................
4-53
Note14: Long Term Debt............................................................................................................
4-54
Note 15: Deferred Charges in Proprietary Funds...........................................................................
4-57
Note16: Segment Information......................................................................................................
4-57
Note17: Joint Ventures................................................................................................................
4-57
Note18: Subsequent Events.........................................................................................................
4-58
Required Supplemental Information Other than MD&A
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget to Actual
GeneralFund....................................................................................................................................
5-1
Actuarial Valuation of Firefighters' Pension Fund.............................................................................
5-2
TABLE OF CONTENTS
DECEMBER 31, 2007
ITEM PAGE
Combining Statements
Non -Major Fund Descriptions...........................................................................................................6-1
CombiningBalance Sheet.................................................................................................................6-5
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ...........................
6-10
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budgetto Actual.............................................................................................................................
6-15
Combining Statement of Net Assets, Non -Major Enterprise Funds..................................................6-27
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets,
Non -Major Enterprise Funds....................................................................................................
6-29
Statement of Cash Flows, Non -Major Enterprise Funds..................................................................
6-30
Combining Statement of Net Assets, Internal Service Funds...........................................................
6-32
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets,
InternalService Funds..............................................................................................................
6-34
Combining Statement of Cash Flows, Internal Service Funds..........................................................
6-35
Statement of Changes in Assets and Liabilities Agency Fund — Special Deposit ..............................
6-37
Statistical Section
Statistical Section Description...........................................................................................................7-1
Financial Trends:
Table 1: Net Assets by Component................................................................................................
7-3
Table2: 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: Pledged -Revenue Coverage for Water and Sewer and Golf Course Revenue 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
iv
CITY OF RENTON
June 1, 2008
Honorable Denis Law, Mayor
Members of the Renton City Council
Residents of Renton
City of Renton, Washington
RE: THE 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Dear Mayor Law, City Councilmembers, and Residents of Renton:
Denis Law, Mayor
We are pleased to present the City's Comprehensive Annual Financial Report for the year ended
December 31, 2007. 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, 2007, 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, 2007, 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.
1055 South Grady Way - Renton, Washington 98057 - (425) 430-6850
RENTON
AHEAD OF THE CURVE
2007 Comprehensive Annual Financial Report City of Renton, Washington
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
18.19 square miles. We have over 1,160 acres of parks that includes 28 active parks. As
presented by the Washington State Office of Financial Management, our 2007 population was
60,290.
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, water,
wastewater, stormwater, street construction and maintenance, planning and zoning, libraries,
parks and recreation, municipal court 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
most of the water provided to its customers comes from its own groundwater supply. The City's
sewage is treated by King County, but the City is responsible for transferring and maintaining the
1-2 Introduction
2007 Comprehensive Annual Financial Report City of Renton, Washington
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 Denis Law's 2008 Budget Message — Building for the Future address he highlighted:
Introduction 1-3
2007 Comprehensive Annual Financial Report
City of Renton, Washington
• "The annexation of the Benson Hill area was approved by its citizens. This will bring
17,000 new residents into the city — about 30% of our current population in March 2008."
• "The redevelopment of 60 acres of industrial land into a mixed use development known
as "The Landing" is well underway. A few of the anchor stores are opening with the 900
units of housing are well underway and dozens of additional businesses are due to open
in 2008."
• "The local economy continues to grow. New housing, retail, and other business
development continues to equal or exceed the rates of growth for the Puget Sound region
as a whole."
• "Burlington Northern Railway is currently replacing all four bridges on their lines
through the heart of the City to make way for continued delivery of parts for The Boeing
Company's 737 assembly."
• Sales tax trends emerged early in the year and continued for balance of 2007 ahead of
2006 by 8.83%.
• The construction category indicates an increase of 45% over 2006 which include several
construction projects in town, including roadway and rail projects.
UPDATE FROM BUDGET DOCUMENT
Outlook
The total 2008 adopted budget is $234,638,924, of which $11,706,704 is related to serving the
Benson Hill annexation. The 2008 General Government Budget (the City's discretionary funds)
totals $97,603.437, which is 16.8% larger than 2007. Without the Benson Hill annexation
funding, the 2008 budget increase is just 3.9% over 2007's budget. The rest of the budget
provides for construction ($63,351,567) and other operating funds (such as utilities, airport, and
golf course - $73,603,311).
There are no tax increases in this budget and the property tax levy rate will decrease from $2.82
to $2.56 per $1,000 of assessed property valuation. Even with this tax rate decrease, the City's
property tax revenues will grow by 5% as a result of new construction being added to the tax
rolls. Utility rates and golf green fees were increase by the City Council in the fall of 2007, with
the increases effective in 2008. Along with the increased rates, the Council also approved
changes to the assistance available to low-income senior citizen households and requested the
review of additional changes that could expand this assistance.
The 2008 budget approved the planning for a badly needed maintenance facility for our Parks
Division. The facility, to be located on land purchased from King County, is estimated to cost
about $12.5 million and will be paid for with money saved over the years for this purpose.
The budget includes a change in the service model for fire and emergency services. The addition
of four firefighters will allow the department to put an additional aid car in service and have
adequate personnel to staff both the aid cars and the fire engines in each station. This will result
in better service to the public. In addition, the department will see additional staffing as a result
1-4 Introduction
2007 Comprehensive Annual Financial Report
City of Renton, Washington
of the annexation of the Benson Hill area. We are working on a contract with the fire district and
will provide fire and emergency services to those residents.
The Police Department will add vehicles, equipment and personnel to serve the Benson Hill area.
The creation of a new police cadet program will help expose interested young people to police
work while also making the cadets available for routine tasks in the department.
Cameras will be installed at certain intersections in early 2008 to identify those motorists who
drive through on a red light. This program is intended to reduce the number of collisions in these
intersections. The revenue resulting from citations will help pay for additional court staff and
related costs.
Source: 2008 Adopted Budget Message — Building for the Future
Letter by: Mayor Denis Law
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 2007, the independent actuarial study estimates a (negative) net pension obligation of
($927,201), 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 $350,000. 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
Introduction 1-5
2007 Comprehensive Annual Financial Report City of Renton, Washington
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
parameters. All members of the division are to be commended for their consistent dedication to
excellence in local government finance. In particular, Nancy Violante, produced a significant
portion of this year's annual financial report. Linda Dixon, Tina Hemphill, Jill Masunaga, Hai
Nguyen, and Vidya Vinod contributed significantly by preparing cash flow statements, the
statistical section, and other elements of this report. Other contributors included: Kristi
Rowland, Tracy Schuld, and Cindy Zinck. The actual production could not be accomplished
without the technical expertise of Mary Roy, 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
Finance & Information Services Administrator
Linda M. Parks, CPA
Fiscal Services Director
1-6 Introduction
Certificate of
Achievement
for Excellence
in Financial
Presented to
City of Renton
Washington
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2006
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual .financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
MAiGS
CM President
Executive Director
Introduction 1-7
City of Renton Corporate Organization Structure
RENTON CITIZENS
CITY COUNCIL MAYOR MUNICIPAL COURT
Marcie Palmer, President Denis Law JUDGE
Randy Corman, Don Persson 425-430-6500 Terry Jurado
Terri Briere, King Parker 425-430-6550
Greg Taylor, Rich Zwicker
425-430-6501
CHIEF ADMINISTRATIVE OFFICER COMMUNICATIONS
Jay Covington Preeti Shridhar, Director
425-430-6500 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, Manager
Community Resources
and Events
POLICE
Kevin Milosevich, Chief
425-430-7503
Operations/Support
Tim Troxel, Deputy Chief
Patrol Operations
Special Operations
Patrol Services
Investigations
Administrative
Services
Staff and Auxiliary
Services
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
FIRE AND EMERGENCY
SERVICES
I. David Daniels, Chief/
Administrator
425-430-7501
Response Operations
Mark Peterson
Deputy Fire Chief
Safety and
Support Services
Robert Van Horne
Deputy Fire Chief
Community Risk
Reduction
Chuck Duffy
Deputy Fire Chief
I
ECONOMIC DEVELOPMENT
NEIGHBORHOODS, AND
STRATEGIC PLANNING
Alex Pietsch, Administrator
425-430-6580
Economic Development
Suzanne Dale Estey,
Director
Neighborhoods
Strategic Planning
HUMAN RESOURCES
AND RISK MANAGEMENT
Michael Webby, Administrator
425-430-7650
Human Resources
Civil Service Commission
Risk Management
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.
FINANCE AND
INFORMATION SERVICES
Michael Bailey, Administrator
425-430-6858
Finance
Linda Parks,
Fiscal Services Director
Information Services
George McBride,
IS Director
Print and Mail
Services
Washington State Auditor
Brian Sonntag
INDEPENDENT AUDITOR'S REPORT
July 16, 2008
Mayor and City Council
City of Renton
Renton, Washington
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of the
City of Renton, King County, Washington, as of and for the year ended December 31, 2007,
which collectively comprise the City's basic financial statements, as listed in the table of
contents. These financial statements are the responsibility of the City's management. Our
responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement..
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the City of Renton, King County,
Washington, as of December 31, 2007, and the respective changes in financial position and,
where applicable, cash flows thereof, for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
The management's discussion and analysis on pages 3-1 through 3-17, budgetary comparison
information on pages 5-1 and pension trust information on page 5-3 are not a required part of
the basic financial statements but are supplementary information required by the Governmental
Accounting Standards Board. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation
of the required supplementary information. However, we did not audit the information and
express no opinion on it.
Our audit was performed for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The accompanying information listed
as combining statements on pages 6-1 through 6-37 is presented for purposes of additional
10 Insurance Building, PO Box 40021.Olympia, Washington 98504-0021 • (360) 902-0370 • TDD Relay (800) 833-6388 s
FAX (360) 753-0646 • http://www.sao.wa.gov
analysis and is not a required part of the basic financial statements. This information has been
subjected to auditing procedures applied in the audit of the basic financial statements and, in
our opinion, is fairly stated, in all material respects, in relation to the basic financial statements
taken as a whole.
The information identified in the table of contents as the Introductory and Statistical Sections is
presented for purposes of additional analysis and is not a required part of the basic financial
statements of the City. Such information has not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we express no opinion on
it.
Sincerely,
BRIAN SONNTAG, CGFM
STATE AUDITOR
2007 Comprehensive Annual Financial Report
City of Renton, Washington
MANAGEMENT'S DISCUSSION AND ANALYSIS
The City of Renton's discussion and analysis provides a narrative overview of the City's financial
activities for the fiscal year ended December 31, 2007. 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 2007
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). 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. SAO reviews the City's internal controls, and the
City receives and takes action on all the recommendations made.
Management's Discussion and Analysis 3-1
2007 Comprehensive Annual Financial Report
City of Renton, Washington
The City maintains strong budgetary controls in order to ensure compliance with legal provisions
embodied in the annual appropriated budget as approved by the City Council. The City Council
must authorize any budget increase or decrease to any fund.
Financial Highlights
• The City's total assets as of December 31, 2007, exceeded liabilities by over $507.5 million.
• As of December 31, 2007, the City's Governmental Activities reported net assets of $297.4
million. Of this total, $32.1 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 $232.7 million of the $362.1 million in Governmental
Activities net assets.
• The business type activities have total net assets of $210.1 million. Ninety (90%) percent of
this total, $188.5 million, represents the City's investments in capital assets. An unrestricted
balance of $17.9 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, 2007, was $93.4 million. Of
this amount, $40.4 million are revenue bonds and PWTF loans dedicated to the waterworks
projects. Another $985,000 is for outstanding bonds for Senior Housing. These bonds have
a special taxing authority. The Golf Course has $2.8 million outstanding in debt service.
Employee leave balances total $5.2 million. The balance of $44 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 2007. This graphic representation should be used in
conjunction with the following explanations to help guide the reader in understanding the financial
condition of the City of Renton.
3-2 Management's Discussion and Analysis
2007 Comprehensive Annual Financial Report
Figure 1
REQUIRED COMPONENTS OF THE
ANNUAL FINANCIAL REPORT
Management Discussion
and Analysis
(required supplementary information)
IC (new)
Government -wide Financial Statements (new)
Fund Financial Statements (refocused)
w�
� Notes to the Financial Statements
M (expanded/restructured)
� .� Required Supplementary
F •� � � Information
a? (other than MD&A)
City of Renton, Washington
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.
Management's Discussion and Analysis 3-3
2007 Comprehensive Annual Financial Report City of Renton, Washington
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, and 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 and 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
3-4 Management's Discussion and Analysis
2007 Comprehensive Annual Financial Report City of Renton, Washington
of the activities' costs are supported by fees and charges that are paid directly by those who benefit
from the activities. Fiduciary Funds control resources held by the government as a trustee or agent
for parties outside of the government. The resources of Fiduciary Funds cannot be used to support
the government's own programs.
Governmental Funds
The Governmental Fund Balance Sheet and Governmental Fund Statement of Revenues,
Expenditures, and Changes in Fund Balances present separate columns of financial data for the
General Fund, Municipal Facilities Construction in Process (CIP), General CIP and the South Lake
Washington CIP Funds. The General CIP and South Lake Washington are new major funds for
2007. 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.
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. The Proprietary Fund Balance Sheet and the Proprietary Fund
Management's Discussion and Analysis 3-5
2007 Comprehensive Annual Financial Report City of Renton, Washington
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 2006 to 2007 shows an increase in total net assets of $21.5 million.
3-6 Management's Discussion and Analysis
2007 Comprehensive Annual Financial Report
City of Renton, Washington
Table 1 is a condensed version of the Government -wide Statement of Net Assets.
Table 1
NET ASSETS
Current and other assets
$89,914,383
Total
Total
Governmental Governmental Business -type
Business -type
Primary
Primary
Activities Activities Activities
Activities
Government
Government
2006 2007 2006
2007
2006
2007
Current and other assets
$89,914,383
$88,100,131
$26,926,855
$24,024,920
$116,841,238
$112,125,051
Land
85,936,207
88,947,494
6,976,320
6,976,320
92,912,527
95,923,814
Construction in process
24,371,783
41,893,039
4,126,115
5,699,288
28,497,898
47,592,327
Capital assets (net of
42,261,663
32,648,993
3,555,690
3,586,667
45,817,353
36,235,660
accumulated depreciation)
143,058,222
143,161,082
213,959,532
218,642,046
357,017,754
361,803,128
TOTAL ASSETS
$343,280,595
$362,101,746
$251,988,822
$255,342,574
$595,269,417
$617,444,320
Long term liabilities $51,093,508 $49,397,374 $44,994,968 $43,999,200 $96,088,476 93,396,574
Other liabilities 10,620,578 15,265,203 2,564,530 1,265,319 13,185,108 16,530,522
TOTAL LIABILITIES $61,714,086 $64,662,577 $47,559,498 $45,264,519 $109,273,584 $109,927,096
NET ASSETS
o
Invested in capital assets,
<
net of related debt
$209,964,556
$232,714,563
$181,515,939
$188,518,151
$391,480,495
$421,232,714
Restricted
42,261,663
32,648,993
3,555,690
3,586,667
45,817,353
36,235,660
Unrestricted
29,340,290
32,075,613
19,357,695
17,973,237
48,697,985
50,048,850
TOTAL NET ASSETS
$281,566,509
$297,439,169
$204,429,324
$210,078,055
$485,995,833
$507,517,224
The majority of the City's net assets (82%) 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 2006 to 2007 by $29.8 million. In
2007, the City issued $9,750,000 in Water/Sewer Revenue Bonds. The proceeds of the bonds were
used to finance utility capital improvements and to refund certain Water/Sewer Revenue Bonds.
Chart 1
CATEGORIES OF NET ASSETS
$450,000,000
$375,000,000
$300,000,000
$225,000,000
$150,000,000
$75,000,000
$0
Management's Discussion and Analysis 3-7
o
o
<
F?
o>
o >
■Unrestricted 0
C7
o
o
■Restricted
cv
N
■Invested in capital assets
Management's Discussion and Analysis 3-7
2007 Comprehensive Annual Financial Report City of Renton, Washington
Restricted assets, representing resources that are subject to external restrictions on how they may be
used, equate to seven percent (7%) of total net assets, down from nine percent (9%) in 2006. The
remaining balance (unrestricted net assets) of $50 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 2006
and 2007.
As of December 31, 2007, 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 2007 by $21.5 million. Governmental activities generated seventy-three percent (73%)
of this total or $15.9 million, while business -type activities generated $5.6 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 2007 Annual Report.
Chart 2
2007 TOTAL REVENUES BY SOURCE
Interest/Investment
earnings
3%
Business
Taxes Excise Taxes
7% �%
Sales Taxes
14%
Property Taxes 1
14% Capital
Grants/ Co ntributi
4%
Miscellaneous
1%
Operating Grants &
Contributions
3%
Charges for Services
49%
3-8 Management's Discussion and Analysis
2007 Comprehensive Annual Financial Report City of Renton, Washington
Table 2
CHANGE OF NET ASSETS
Total Primary Total Primary
Governmental Governmental Business -Type Business -Type Government Government
Activities 2006 Activities 2007 Activities 2006 Activities 2007 2006 2007
REVENUES:
$19,977,086
$29,112,970
$7,435,879
$5,648,731
$19,977,086
$29,112,970
Program revenues:
1,434,134
1,845,031
$68,446
1,434,134
1,845,031
Charges for services
$31,340,523
$36,863,657
$40,056,079
$45,403,349
$71,396,602
$82,267,006
Operating grants & contributions
4,596,836
5,265,737
77,688
243,537
4,674,524
5,509,274
Capital grants & contributions
5,909,870
4,940,471
6,317,203
1,761,802
12,227,073
6,702,273
GENERAL REVENUES:
6,372,118
6,880,687
6,372,118
6,880,687
Property taxes
23,600,131
23,106,578
23,600,131
23,106,578
Sales taxes
20,869,595
22,749,831
20,869,595
22,749,831
Business taxes
11,219,303
11,962,879
11,219,303
11,962,879
Other taxes
7,718,945
8,236,876
7,718,945
8,236,876
Penalties and interest
3,799
33,949
$27,220,132
$28,657,468
3,799
33,949
Interest and investment earnings
3,251,975
3,465,517
881,486
1,041,576
4,133,461
4,507,093
Miscellaneous
689,243
1,218,889
282,808
135,986
972,051
1,354,875
TOTAL REVENUES
$109,200,220
$117,844,384
$47,615,264
$48,586,250
$156,815,484
$166,430,634
PROGRAM EXPENSES
GOVERNMENTAL ACTIVITIES
General government services
$19,977,086
$29,112,970
$7,435,879
$5,648,731
$19,977,086
$29,112,970
Judicial
1,434,134
1,845,031
$68,446
1,434,134
1,845,031
Security of persons and property
30,749,762
36,213,120
7,504,325
5,648,731
30,749,762
36,213,120
Physical environment
2,618,832
2,749,417
196,924,999
204,429,324
2,618,832
2,749,417
Transportation
15,798,138
11,237,287
$204,429,324
$210,078,038
15,798,138
11237,287
Economic environment
6,372,118
6,880,687
6,372,118
6,880,687
Mental and physical health
295,072
301,495
295,072
301,495
Culture and recreation
9,695,924
11,036,931
9,695,924
11,036,931
Interest on long-term debt
1,772,370
2,594,784
1,772,370
2,594,784
Business -type activities
Water
$27,220,132
$28,657,468
27,220,132
28,657,468
Airport
1,196,363
1,396,054
1,196,363
1,396,054
Solid waste
9,706,016
10,606,560
9,706,016
10,606,560
Golf
2,056,874
2,277,454
2,056,874
2,277,454
TOTAL EXPENSES
$88,713,436
$101,971,722
$40,179,385
$42,937,536
$128,892,821
$144,909,258
Increase in net assets before transfers
$20,486,784
$15,872,662
$7,435,879
$5,648,731
$27,922,663
$21,521,391
Transfers
(68,446)
$68,446
0
Increase in net assets
20,418,338
15,872,662
7,504,325
5,648,731
27,922,663
21,521,391
NetAssets- beginning
261,148,171
281,566,509
196,924,999
204,429,324
458,073,170
485,995,833
Net Assets -ending
$281,566,509
$297,439,171
$204,429,324
$210,078,038
$485,995,833
$507,517,224
Seventy-one percent (71%) 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 Chart 3
waste, and golf activities. 2007 COMPARISON OF TOTAL GOVERNMENTAL vs
BUSINESS TYPE EXPENSES
Governmental Activities Analysis
Governmental activities cost a total of
$101.9 million in 2007, up $13.2 million
from 2006. Of this amount, $47 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
Business Type
Activities
3 no/r
Governmental
Activities
70%
Management's Discussion and Analysis 3-9
2007 Comprehensive Annual Financial Report
City of Renton, Washington
and contribution. The net expense (total expenses less program revenues) of $54.9 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).
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
Chart 4
GOVERNMENTAL ACTIVITIE S
PROGRAM REVENUES AND EXPENSES
2006 vs 2007
1`l,�
I§1v Qt04 Qt°4 too too {
eon e� 0 'P��
Cs G ti ti IN
,yob' yon^ Qje 4�i�os ��s'� c� °a yOC�' y0o� o�� op°� o�q Oa4 tea dioa btio 0^10
.�a 1a y1 ,lC� ,y0
_f ,mm ryoobG �oo�Ga1
Chart 5 depicts the sources of revenues that fund governmental activities. Approximately fifty-six
percent (56%) is from various taxes. Charges for services, grants, and interest earnings generate
forty-three percent (43%) of total revenue for general governmental activities.
3-10 Management's Discussion and Analysis
2007 Comprehensive Annual Financial Report
Chart 5
GOVERNMENTAL ACTIVITIES
REVENUES BY SOURCE
Operating Grants
4%
Charges for Services
32%
Miscellaneous
1%
Interest Earnings
3%
Capital Grants
4%
City of Renton, Washington
Property Taxes
20%
1 Retail Sales Taxes
Excise Taxes 19%
7% Business Taxes
10%
Business -Type Activities Analysis
Charts 6 and 7 present the same information on business -type activities as illustrated for general
governmental type activities. Chart 6 shows the expense of each of the City's business -type
programs along with each program's generated revenues (fees and intergovernmental revenues
specifically related to that program.)
$ 35,000,000
$ 30,000,000
$ 25,000,000
$ 20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
Chart 6 ■ Expenses
BUSINESS TYPE ACTIVITIES
PROGRAM REVENUES AND EXPENSES ■Revenues
2006 2007 2006 Airport 2007 Airport 2006 Solid 2007 Solid 2006 Golf 2007 Golf
Waterworks Waterworks Waste Waste Course Course
The Waterworks Utility had a positive net change of $6.1 million at the end of 2007 compared to
$6.8 million in 2006. The City generated $33.8 million in various fees for services and other
sources from waterworks activities above the $28.7 million in expenses.
Management's Discussion and Analysis 3-11
2007 Comprehensive Annual Financial Report
City of Renton, Washington
The Airport's total expenses were $1.4 million. Grant revenues for 2007 were $65,986 with total
revenues of $1 million.
The Solid Waste Utility's revenues were $10.1 million generated from fees for services and
$143,483 in grants. The total expenses were $10.6 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 $2.3 million. Thus, the Golf Course
generated a net asset change of $57,100 for the year.
Business -type activities are supported
primarily from charges for services. In the
City of Renton, $45 million was generated
from charges for services in the business -type
activities. These comprise ninety-four
percent (94%) of the total financial support
for these activities. Grant revenues decreased
68.6% or $4.4 million from 2006 to 2007.
Chart 7
BUSINESS TYPE ACTIVITIES
REVENUES BY SOURCES
Interest &
Grant Miscellaneous
94%
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 $50.5 million, a decrease of $9.7 million in comparison to last year. Approximately
15% 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 $8 million, while total fund balance reached
$16.5 million. The fund balance total increased $2.6 million during the fiscal year. Excess of
revenues over expenses increased by $721,678 in 2007, significantly contributing to this increase.
The Parks Fund was eliminated in 2006. The activity of this fund was transferred to the General
Fund, significantly contributing to the increase activity in the General Fund.
3-12 Management's Discussion and Analysis
2007 Comprehensive Annual Financial Report City of Renton, Washington
The Municipal Fund revenues of $2.4 million in taxes helped contribute toward the overall fund
balance increase of $1.1 million. A total of $1.2 million was spent on Major Maintenance of Public
Facilities.
The Capital Improvement Fund was a new major fund in 2007 and had a net change (decrease) in
fund balance of $4.1 million. Decreases of $2.8 million in Proceeds of Long-term Debt and $1.3
million in Transfers contributed significantly to the negative change in the fund balance. The 2007
ending fund balance is $4.4 million.
The South Lake Washington Infrastructure Fund was also a new major fund in 2007 and had a net
change (decrease) in fund balance of $11.1 million. Decrease of $2.2 million in Intergovernmental
Revenues, decrease of $15.7 million in Proceeds of Long-term Debt and an increase of $5.4 million
in Capital Outlay expenditures contributed to the negative change in the fund balance. The 2007
ending fund balance is $541,655.
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 $13.5 million
and $2.3 million respectively. This represents a decrease in Waterworks Utility Fund of $1.5
million and a decrease in the Solid Waste Fund of $206,696 in unrestricted net assets. Total Net
Assets increased in the Waterworks Utility Fund by $6.1 million and decreased in the Solid Waste
Fund by $208,009. 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, 2007, amounts to $505.3 million as
presented on the following table.
Table 3
CAPITAL ASSETS
(Net of Accumulated Depreciation)
Governmental Activities Business Type Activities Total Activities
1/1/2007 12/31/2007 1/1/2007 12/31/2007 1/1/2007 12/31/2007
Land
$85,936,207
$88,947,494
$ 6,976,321
$6,976,321
$92,912,528
$95,923,815
Construction in progress
24,371,783
41,893,039
4,126,115
5,699,288
28,497,898
47,592,327
Buildings and structures
53,544,216
52,356,883
11,131,546
10,799,011
64,675,762
63,155,894
Other improvements
77,247,581
78,576,142
201,871,536
206,963,989
279,119,117
285,540,131
Machinery and equipment
12,266,422
12,228,057
956,451
879,046
13,222,873
13,107,103
$253,366,209
$274,001,615
$225,061,969
$231,317,655
$478,428,178
$505,319,270
Management's Discussion and Analysis 3-13
2007 Comprehensive Annual Financial Report City of Renton, Washington
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.
Debt Administration
As shown in Table 4, the City's total outstanding debt at December 31, 2007, was $93.4 million.
This was a net decrease (new issues less principal payments and refundings) of $2.7 million.
Table 4
OUTSTANDING DEBT
General Activities Business Type Activities Total Activities
1/1/2007 12/31/2007 1/1/2007 12/31/2007 1/1/2007 12/31/2007
General obligation bonds
$46,899,513 $44,956,950
$46,899,513
$44,956,950
Revenue debt
$33,840,000
33,405,000
33,840,000
33,405,000
Other long term debt
10,692,018
9,878,951
10,692,018
9,878,951
Employee leave benefits
4,193,995 4,440,424 462,947
715,249
4,656,942
5,155,673
$51,093,508 $49,397,374 $44,994,965
$43,999,200
$96,088,473
$93,396,574
November 1, 2007 the City issued $9,750,000 of Water/Sewer Revenue Bonds. These bonds were
issued for the purpose of financing the certain improvements and to refund a portion of the 2002
Water/Sewer Revenue 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.
• The Landing Project is a redevelopment of the former Boeing production site. It is a major
mixed-use development of 68 acres and when fully developed will include 600,000 square
feet of retail space, a theater, restaurants, open -space, and 900 residential units.
• The City has been rezoning the Highlands area (WWII housing for wartime factories) for
redevelopment.
• The Boeing Company is the largest employer in the City employs approximately 12,000
employees with an average salary of $90,000.
• Seattle Seahawks moved their corporate headquarters and training center to Renton. This
facility is about 200,000 square feet, with four practice fields and 48,000 square feet of
administrative offices.
• Providence Health Systems establishing its offices in the Southgate Office Park, which will
employ over 1,000 workers.
• McLendon's Hardware relocated to the former K -Mart Building.
3-14 Management's Discussion and Analysis
2007 Comprehensive Annual Financial Report
City of Renton, Washington
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.
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 Linda Parks, Fiscal Services Director, 1055 South Grady
Way, Renton, WA 98057 or visit our web site at http://rentonwa.gov/.
Management's Discussion and Analysis 3-15
2007 Comprehensive Annual Financial Report
ASSETS
Cash and cash equivalents
Investments at fair value
Receivables (net of allowance
for uncollectibles)
Internal balances
Inventories
Prepayments
Other non-current assets
Restricted assets:
Cash and cash equivalents
Investments at fair value
Land
Construction in progress
Capital assets (net of accumulated
depreciation)
Total assets
LIABILITIES
Accounts payable and
other liabilities
Interest payable
Unamortized (discount)/premium
Unearned revenue
Non-current liabilities:
Due within one year
Due in more than one year
Total liabilities
NET ASSETS
Investment in capital assets,
net of related debt
Restricted for:
Promotional programs
Construction projects
Debt service
Unrestricted
Total net assets
City of Renton, Washington
STATEMENT OF NET ASSETS
December 31, 2007
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES TOTAL
$ 20,119,002 $ 5,081,099 $ 25,200,101
48,297,436 8,823,548 57,120,984
14,060,134
5,370,085
19,430,219
6,905
(6,905)
443,461
443,461
383,826
-
383,826
5,232,828
726,965
5,959,793
1,395,309
1,395,309
2,191,358
2,191,358
88,947,494
6,976,320
95,923,814
41,893,039
5,699,288
47,592,327
143,161,082
218,642,046
361,803,128
$ 362,101,746
$
255,342,574
$ 617,444,320
$ 14,361,841
$
1,391,696
$ 15,753,537
186,309
130,266
316,575
635,952
(484,447)
151,505
81,101
227,804
308,905
5,205,018
3,349,508
8,554,526
44,192,356
40,649,692
84,842,048
$ 64,662,577
$
45,264,519
$ 109,927,096
$ 232,714,563
$
188,518,151
$ 421,232,714
2,616,596
-
2,616,596
30,032,397
-
30,032,397
3,586,667
3,586,667
32,075,613
17,973,237
50,048,850
$ 297,439,169
$
210,078,055
$ 507,517,224
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-1
2007 Comprehensive Annual Financial Report
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2007
Page 1 of 2
City of Renton, Washington
Business -type activities
Waterworks utility
$ 28,657,468 $
32,078,690 $
PROGRAM REVENUES
1,735,680
Airport
1,396,054
965,809
OPERATING
26,122
Solid waste utility
10,606,560
CHARGES FOR
GRANTS AND
CAPITAL GRANT
FUNCTIONS/PROGRAMS
EXPENSES
SERVICES
CONTRIBUTIONS
& CONTRIBUTIONS
Primary government:
$ 42,937,536 $
45,403,349 $
243,537 $
1,761,802
Governmental activities:
$ 144,909,258 $
82,267,006 $
5,509,274 $
6,702,273
General government
$ 29,112,970
$ 23,163,645
$ 4,249,684 $
514,633
Judicial
1,845, 031
1,169,581
-
-
Security of persons and property
36,213,120
591,586
708,299
Physical environment
2,749,417
999,484
-
-
Transportation
11,237,287
1,432,215
87,481
2,368,824
Economic environment
6,880,687
7,857,186
-
2,054,314
Mental and physical health
301,495
-
209,397
2,700
Culture and recreation
11,036,931
1,649,960
10,876
-
Interest on long-term debt
2,594,784
-
-
-
Total governmental activities
$ 101,971,722
$ 36,863,657
$ 5,265,737 $
4,940,471
Business -type activities
Waterworks utility
$ 28,657,468 $
32,078,690 $
60,190 $
1,735,680
Airport
1,396,054
965,809
39,864
26,122
Solid waste utility
10,606,560
10,094,752
143,483
-
Golf course
2,277,454
2,264,098
-
-
Total business -type activities
$ 42,937,536 $
45,403,349 $
243,537 $
1,761,802
Total primary government
$ 144,909,258 $
82,267,006 $
5,509,274 $
6,702,273
General revenues:
Taxes:
Property taxes
Retail sales taxes
Business taxes
Excise taxes
Penalties and interest
Interest and investment earnings
Miscellaneous
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
2007 Comprehensive Annual Financial Report
Page 2 of 2
NET (EXPENSE) REVENUE AND
CHANGES IN NET ASSETS
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES TOTAL
$ (1,185,010)
(675,450)
(34,913,235)
(1,749,933)
(7,348,767)
3,030,813
(89,398)
(9,376,095)
(2,594,784)
$ (54,901,859)
$ (1,185,010)
(675,450)
(34,913,235)
(1,749,933)
(7,348,767)
3,030,813
(89,398)
(9,376,095)
(2,594,784)
$ (54,901,859)
$ 5,217,109 $ 5,217,109
(364,259) (364,259)
(368,325) (368,325)
(13,356) (13,356)
$ 4,471,169 $ 4,471,169
$ (54,901,859) $ 4,471,169 $ (50,430,690)
$ 23,106,578
$
$
23,106,578
22,749,831
22,749,831
11,962,879
11,962,879
8,236,876
8,236,876
33,949
33,949
3,465,517
1,041,576
4,507,093
1,218,889
135,986
1,354,875
$ 70,774,519
$
$
1,177,562
71,952,081
$ 15,872,660
$
5,648,731
$
21,521,391
$ 281,566,509
$
204,429,324
$
485,995,833
$ 297,439,169
$
210.078,055
$
507,517,224
City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-3
2007 Comprehensive Annual Financial Report
ASSETS
Cash & cash equivalents
Investments
Receivables (net of allowances)
Taxes
Customer accounts
Accrued interest & penalty
Interfund loans receivable
Due from other funds
Due from other governmental units
Prepayments
TOTAL ASSETS
City of Renton, Washington
BALANCE SHEET
GOVERNMENTALFUNDS
December 31, 2007
Page 1 of 4
MUNICIPAL SO LK WA
FACILITIES CAPITAL INFRASTRUC-
GENERAL CIP IMPROVEMENT TURE
$ 6,784,804 $ 1,438,958 $ 1,063,746 $ 1,414
7,533,665 13,914,644 5,508,676 -
368,733 180,940
2,773,767 141,855 1,181, 392
201,602 351,199 95,226 -
975,000 -
6,905 - -
4,772,646 67,754 1,699,105 347,849
8,000
$ 22,450,122 $ 16,928,495 $ 8,508,608 $ 1,530,655
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-4
2007 Comprehensive Annual Financial Report
BALANCE SHEET
GOVERNMENTALFUNDS
December 31, 2007
Page 2 of 4
ASSETS
Cash & cash equivalents
Investments
Receivables (net of allowances)
Taxes
Customer accounts
Accrued interest & penalty
Interfund loans receivable
Due from other funds
Due from other governmental units
Prepayments
TOTAL ASSETS
OTHER TOTAL
GOVERNMENTAL GOVERNMENTAL
FUNDS FUNDS
4,450,427 $ 13,739,349
6,612,445 33,569,430
193,223
742,896
948,030
5,045,044
155,276
803,303
-
975,000
447,999
454,904
191,540
7,078,894
-
8,000
$ 12,998,940 $
62,416,820
City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-5
2007 Comprehensive Annual Financial Report
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Taxes payable
Retainage payable
Due to other funds
Interfund loans payable
Custodial accounts
Deposits
Deferred revenue
Accrued employee wages and leave payable
Total liabilities
Fund balances
Reserved for:
Advances to other funds
Prepaid items
Unreserved, designated for:
General fund contingency
Capital project funds contingency
Special revenue funds
Capital project fund
Unreserved reported in:
General fund
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
City of Renton, Washington
BALANCE SHEET
GOVERNMENTALFUNDS
December 31, 2007
Page 3 of 4
MUNICIPAL SO LK WA
FACILITIES CAPITAL INFRASTRUC-
GENERAL CIP IMPROVEMENT TUBE
$ 2,134,476 $ 352,956 $ 3,475,822 $ 14,000
23,397 - - -
- 54,851 228,983
- 448,000 -
- - 975,000
56,207 -
34,739
736,152
2,982,767 - -
$ 5,967,738 $ 407,807 $ 4,152,805 $ 989,000
$ - $ $ $ 975,000
8,000 -
8,450,664
- 1,700,000
14,820,688 4,355,803
8,023,720 (433,345)
$ 16,482,384 $ 16,520,688 $ 4,355,803 $ 541,655
$ 22,450,122 $ 16,928,495 $ 8,508,608 $ 1,530,655
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-6
2007 Comprehensive Annual Financial Report
BALANCE SHEET
GOVERNMENTALFUNDS
December 31, 2007
Page 4 of 4
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Taxes payable
Retainage payable
Due to other funds
Interfund loans payable
Custodial accounts
Deposits
Deferred revenue
Accrued employee wages and leave payable
Total liabilities
Fund balances
Reserved for:
Advances to other funds
Prepaid items
Unreserved, designated for:
General fund contingency
Capital project funds contingency
Special revenue funds
Capital project fund
Debt service funds
Unreserved reported in:
General fund
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
City of Renton, Washington
OTHER TOTAL
GOVERNMENTAL GOVERNMENTAL
FUNDS FUNDS
31,782
261,148
41,743
32,981
3,435
4,089
$ 375,178
2,616,596
8,599,449
1,392, 915
$ 6,009,036
284,545
325,577
448,000
975,000
56,207
67,720
739,587
2,986,856
$ 11,892,528
975,000
8,000
8,450,664
1,700, 000
2,616,596
27,775,940
1,392, 915
14,802 7,605,177
$ 12,623,762 $ 50,524,292
$ 12,998,940 $ 62,416,820
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-7
2007 Comprehensive Annual Financial Report
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
December 31, 2007
FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
Amounts reported for governmental activities in the statement of net assets are
different because:
Capital assets used in governmental activities are not financial resource:
and therefore are not reported in the governmental funds
Capital assets (net) and other non-current assets,
$ 279,234,443
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
$ 658,486
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
$ (195,565)
Long-term liabilities
(49,773,730)
Internal service funds are used by management to charge the costs o'
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
$ 16,991,243
NET ASSETS OF GOVERNMENTAL ACTIVITIES
City of Renton, Washington
$ 50,524,292
$ 297,439,169
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-8
2007 Comprehensive Annual Financial Report
City of Renton, Washington
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
For the Year Ended December
31, 2007
Page 1 of 2
MUNICIPAL
SO LK WA
FACILITIES
CAPITAL
INFRASTRUC-
GENERAL
CIP
IMPROVEMENT
TUBE
REVENUES
Taxes
$
60,853,487 $
2,352,213 $
$
490,414
Licenses and permits
4,051,338
-
1,776,892
-
Intergovernmental revenues
4,247,212
67,754
2,779,780
2,158,450
Charges for services
4,644,129
-
55
1,181,392
Fines and forfeits
1,150,079
Interfund revenues
2,904,411
-
Special assessments
-
51,723
Contributions
303,582
-
-
-
Investment earnings
1,142,279
684,513
(37,379)
23,656
Miscellaneous revenues
84,822
-
-
TOTAL REVENUES
$
79,381,339 $
7104,480 $
4,571,071 $
3,853,912
EXPENDITURES
Current:
General government
$
14,327,626 $
$
- $
-
Security of persons and property
35,583,500
Physical environment
2,764,563
-
Transportation
5,508,218
895,140
Economic environment
5,536,661
75,498
-
Mental & physical health
13,818
Culture & recreation
10,701,870
-
-
-
Capital outlay
2,401,021
3,838,264
9,685,824
13,257,705
Debt service:
Principal payment
-
-
Interest payment
4,582
-
-
26,538
TOTAL EXPENDITURES
$
76,841,859 $
3,913,762 $
9,685,824 $
14,179,383
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
2,539,480 $
(809,282) $
(5,114,753) $ (10,325,471)
OTHER FINANCING SOURCES (USES)
Transfer in
$
480,355 $
1,871,957 $
1,065,000 $
Transfer (out)
(480,355)
-
(60,000)
(784,580)
Sale of capital assets
24,218
TOTAL OTHER FINANCE SOURCES (USES) $
24,218 $
1,871,957 $
1,005,000 $ (784,580)
NET CHANGE IN FUND BALANCE
$
2,563,698 $
1,062,675 $
(4,109,753) $ (11,110,051)
FUND BALANCE JANUARY 1
$
13,918,686 $
15,458,013 $
8,465,556 $
11,651,706
FUND BALANCE DECEMBER 31
$
16,482,384 $
16,520,688 $
4,355,803 $
541,655
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-9
2007 Comprehensive Annual Financial Report
City of Renton, Washington
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
For the Year Ended December 31, 2007
Page 2 of 2
REVENUES
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeits
Interfund revenues
Special assessments
Contributions
Investment earnings
Miscellaneous revenues
TOTALREVENUES
EXPENDITURES
Current:
General government
Security of persons and property
Physical environment
Transportation
Economic environment
Mental & physical health
Culture & recreation
Capital outlay
Debt service:
Principal payment
Interest payment
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in
Transfer (out)
Sale of capital assets
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
OTHER TOTAL
GOVERNMENTAL GOVERNMENTAL
FUNDS FUNDS
$ 3,002,762 $
66,698,876
-
5,828,230
538,634
9,791,830
4,223,303
10,048,879
-
1,150,079
448,000
3,352,411
-
51,723
50,000
353,582
673,820
2,486,889
1,500
86,322
$ 8,938,019 $
99,848,821
$ 269,729 $
14,597,355
-
35,583,500
2,764,563
-
6,403,358
284,430
5,896,589
-
13,818
128,354
10,830,224
137,209
29,320,023
1,565,904
1,565,904
2,615,503
2,646,623
$ 5,001,129 $
109,621,957
(9,773,136)
$ 3,936,890 $
$ 2,365,676 $
5,782,988
(4,458,053)
(5,782,988)
24,218
$ (2,092,377) $
24,71-8–
$ 1,844,513 $
(9,748,918)
$ 10,779,249 $
60,273,210
$ 12,623,762 $
50,524,292
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-10
2007 Comprehensive Annual Financial Report
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2007
NET CHANGES IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
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
Capital Outlay
$ 29,320,023
Expenditures for assets under capitalization threshholc
(2,787,522)
Expenditures for capital assets
$ 26,532,501
Less current year depreciation
(8,254,544)
$ 18,277,957
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 governmenta
funds, but the repayment reduces long-term liabilities
in the statement of net assets.
Principal payments
$ 1,565,904
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
$ 331,700
Net Pension Obligation over funded / (under funded;
$ 154,035
Internal service funds or activities are used by management tc
charge the costs of certain activities to individual funds.
The net (expense) of the internal service fund anc
internal balances reported with governmental activities,
$ 5,291,982
CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES
City of Renton, Washington
$ (9,748,918)
$ 15,872,660
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-11
2007 Comprehensive Annual Financial Report City of Renton, Washington
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2007
Page 1 of 2
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS GOVERNMENTAL
OTHER TOTAL ACTIVITIES
WATERWORKS ENTERPRISE ENTERPRISE INTERNAL SERVICE
UTILITY SOLID WASTE FUNDS FUNDS FUNDS
ASSETS
Current assets:
Cash & cash equivalents
$
2,797,689
$
879,629
$
1,403,781
$
5,081,099
$
6,379,653
Investments at fair value
7,362,526
652,379
808,643
8,823,548
14,728,006
Receivables (net of allowances):
Customer accounts
3,285,863
1,169,456
58,946
4,514,265
32,863
Special assessments - current
25,648
-
25,648
Interest - investments
204,096
14,488
20,340
238,924
344,804
Due from other funds
-
18,060
Due from other governmental units
430,713
143,483
17,053
591,249
12,330
Inventory of materials and supplies
351,393
-
92,068
443,461
Prepayments
375,826
Total current assets
$
14,457,928
$
2,859,435
$
2,400,831
$
19,718,194
$
21,891,542
Noncurrent assets:
Restricted Cash
$
1,395,309
$
-
$
$
1,395,309
$
Restricted Investments at fair value
1,750,000
441,358
2,191,358
Special assessments deferred
52,918
52,918
Capital assets (net)
211,899,961
19,417,693
231,317,654
7,674,602
Deferred charges and other assets
638,432
35,615
674,047
Total noncurrent assets
$
215,736,620
$
$
19,894,666
$
235,631,286
$
7,674,602
TOTAL ASSETS
$
230,194,548
$
2,859,435
$
22,295,497
$
255,349,480
$
29,566,144
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-12
2007 Comprehensive Annual Financial Report
LIABILITIES
Current liabilities:
Accounts payable
Retainage payable
Due to other funds
Accrued interest payable
Accrued employee wages and benefits payable
Accrued taxes payable
Custodial Accounts
Deferred revenue
Revenue bonds payable
Capital leases payable
Total current liabilities
Long-term liabilities:
Revenue bonds payable
Unamortized premium on revenue bonds
Unamortized discount on revenue bonds
Deferred amount on revenue bond refundinc
Accrued employee wages and benefits payable
Claims incurred but not reported
Capital leases payable
Public works trust fund loan payable
Total long-term liabilities
TOTAL LIABILITIES
NET ASSETS
Investment in capital assets,
net of related debt
Restricted for Waterworks Utility debt
Restricted for Golf Course debt
Unrestricted
TOTAL NET ASSETS
City of Renton, Washington
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2007
Page 2 of 2
BUSINESS -TYPE ACTIVITIES
435,005
ENTERPRISE FUNDS
GOVERNMENTAL
OTHER TOTAL
ACTIVITIES
WATERWORKS ENTERPRISE ENTERPRISE
INTERNAL SERVICE
UTILITY SOLID WASTE FUNDS FUNDS
FUNDS
$ 448,461 $
435,005
$ 74,544
$ 958,010 $
1,299,756
95,847
-
95,847
6,905
6,905
18,060
118,364
11,902
130,266
35,225
1,072
7,194
43,491
13,246
46,727
41,821
36,235
124,783
4,335
44,430
-
125,137
169,567
195,269
32,535
227,804
1,810,000
295,000
2,105,000
9,192
9,192
$ 2,801,228 $
477,898
$ 591,739
$ 3,870,865 $
1,335,397
$ 28,790,000 $
$ 2,510,000
$ 31,300,000 $
659,170
659,170
(330,837)
(242,500)
(573,337)
(570,280)
(570,280)
563,321
31,356
120,572
715,249
578,947
2,985,955
66,881
66,881
9,802,877
9,802,877
$ 38,914,251 $
31,356
$ 2,454,953
$ 41,400,560 $
3,564,902
$ 41,715,479 $
509,254
$ 3,046,692
$ 45,271,425 $
4,900,299
$ 171,739,031 $
$ 16,779,120
$ 188,518,151 $
7,674,602
3,145, 309
3,145, 309
441,358
441,358
13,594,729
2,350,181
2,028,327
17,973,237
16,991,243
$ 188,479,069 $
2,350,181
$ 19,248,805
$ 210,078,055 $
24,665,845
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-13
2007 Comprehensive Annual Financial Report
City of Renton, Washington
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For the Year Ended December 31, 2007
NON-OPERATING REVENUES(EXPENSES)
Intergovernmental revenues
105,190
143,483
BUSINESS -TYPE ACTIVITIES
314,659
2,998
Investment earnings
810,519
86,496
144,561
ENTERPRISE FUNDS
978,627
Gain (loss) on sale of capital assets
GOVERNMENTAL
-
(324)
(324)
(100,032)
OTHER
TOTAL
778
ACTIVITIES
32,255
692,604
WATERWORKS
(942,363)
ENTERPRISE
ENTERPRISE
(1,100,501)
INTERNAL SERVICE
Amortization of debt discount and expense
(170,756)
UTILITY
SOLID WASTE
FUNDS
FUNDS
NON-OPERATING REVENUE NET OF EXPENSE
FUNDS
OPERATING REVENUES:
$ 20,556
$ 82,145
$ 1,574,197
INCOME (LOSS) BEFORE CONTRIBUTIONS
Charges for services
$
30,992,121
$ 10,167,256
$ 3,230,099
$ 44,389,476
$
9,755,146
Interdepartmental services
$ 1,730,360
675,288
538
-
675,826
CHANGE IN NET ASSETS
-
Other services
$ (229,951)
409,344
-
-
409,344
$ 2,558,190
9,581,022
TOTAL OPERATING REVENUES
$
32,076,753
$ 10,167,794
$ 3,230,099
$ 45,474,646
$
19,336,168
OPERATING EXPENSES:
Operations and maintenance
$
5,054,666
$ 887,106
$ 1,754,647
$ 7,696,419
$
(1,279,983)
Benefit payments
1,243,249
90,217
390,358
1,723,824
10,702,181
Professional services
170,898
8,449,626
57,937
8,678,461
580,437
Administrative and general
13,451,923
129,482
491,992
14,073,397
1,543,298
Insurance
62,400
-
51,000
113,400
1,904,516
Taxes
2,037,506
1,048,816
10,994
3,097,316
-
Capital outlay
-
-
-
-
106,303
Depreciation
5,530,612
1,313
723,678
6,255,603
2,061,628
TOTAL OPERATING EXPENSES
$
27,551,254
$ 10,606,560
$ 3,480,606
$ 41,638,420
$
15,618,380
OPERATING INCOME (LOSS)
$
4,525,499
$ (438,766)
$ (250,507)
$ 3,836,226
$
3,717,788
NON-OPERATING REVENUES(EXPENSES)
Intergovernmental revenues
105,190
143,483
65,986
314,659
2,998
Investment earnings
810,519
86,496
144,561
1,041,576
978,627
Gain (loss) on sale of capital assets
-
-
(324)
(324)
(100,032)
Other non-operating revenues (expenses)
28,242
778
3,235
32,255
692,604
Interest expense
(942,363)
-
(158,138)
(1,100,501)
-
Amortization of debt discount and expense
(170,756)
-
(34,764)
(205,520)
-
NON-OPERATING REVENUE NET OF EXPENSE
$ (169,168)
$ 230,757
$ 20,556
$ 82,145
$ 1,574,197
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS
$ 4,356,331
$ (208,009)
$ (229,951)
$ 3,918,371
$ 5,291,985
Capital contributions
$ 1,730,360
$ -
$ -
$ 1,730,360
$ -
CHANGE IN NET ASSETS
$ 6,086,691
$ (208,009)
$ (229,951)
$ 5,648,731
$ 5,291,985
NET ASSETS, JANUARY 1
$ 182,392,378
$ 2,558,190
$ 19,478,756
$ 204,429,324
$ 19,373,860
NET ASSETS, DECEMBER 31
$ 188,479,069
$ 2,350,181
$ 19,248,805
$ 210,078,055
$ 24,665,845
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-14
2007 Comprehensive Annual Financial Report City of Renton, Washington
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2007
Page 1 of 2
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-15
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
GOVERNMENTAL
OTHER
TOTAL
ACTIVITIES
WATERWORKS
ENTERPRISE
ENTERPRISE
INTERNAL SERVICE
UTILITY
SOLID WASTE
FUNDS
FUNDS
FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services
$
31,299,489 $
10,130,403 $
3,228,767 $
44,658,659 $
19,333,824
Cash received from other funds for services
498,349
-
-
498,349
-
Cash paid to suppliers for goods & services
(21,580,628)
(10,676,114)
(2,380,262)
(34,637,004)
(2,367,693)
Cash paid to other funds for goods & services
(43,771)
(8,400)
(52,171)
Cash paid to employees
(1,197,995)
(76,170)
(387,278)
(1,661,443)
(10,381,148)
Other operating receipts
-
352,270
352,270
(2,165,389)
Other non-operating receipts
28,242
-
(155,227)
(126,985)
(106,303)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
$
9,003,686 $ (269,611) $
297,600 $
9,031,675 $
4,313,291
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
(Increase)/decrease in restricted cash
$
- $
$
- $
- $
-
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES
$
$
$
- $
- $
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets
$
(11,845,087) $
$
(665,722) $
(12,510,809) $
(1,882,053)
Capital contributions
1,730,360
-
1,730,360
Capital grants
105,190
65,986
171,176
Principal payments on debt
(1,039,143)
(295,000)
(1,334,143)
Interest payments on debt
(1,383,834)
8,872
(1,374,962)
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES
$
(12,432,514) $
$
(885,864) $
(13,318,378) $
(1,882,053)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for investments
$
(146,304) $
(500,000) $
(58,643) $
(704,947) $
(5,180,277)
Interest on investments
(6,075,517)
72,691
136,621
(5,866,205)
857,121
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES
$
(6,221,821) $ (427,309) $
77,978 $
(6,571,152) $
(4,323,156)
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS
$
(9,650,649) $
(696,920) $
(510,286) $
(10,857,855) $
(1,891,918)
CASH & CASH EQUIVALENTS, JANUARY 1
12,479,315
1,576,549
1,914,067
15,969,931
8,271,571
RESTRICTED CASH, JANUARY 1
1,364,332
-
-
1,364,332
-
CASH , RESTRICTED CASH ,& CASH
EQUIVALENTS, DECEMBER 31
$
4,192,998 $
879,629 $
1,403,781 $
6,476,408 $
6,379,653
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-15
2007 Comprehensive Annual Financial Report
City of Renton, Washington
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2007
Page 2 of 2
BUSINESS -TYPE ACTIVITIES
GOVERNMENTAL
ENTERPRISE FUNDS
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)
$
4,525,499
$ (438,766)
$ (250,507)
$
3,836,226
$
1,183,764
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization of
deferred charges
$
5,530,612
$ 1,313
$ 723,678
$
6,255,603
$
2,061,628
Other non-operating revenue
28,242
144,261
(155,227)
17,276
592,573
(Increase) decrease in
accounts receivable
(101,976)
(37,391)
(13,417)
(152,784)
(2,344)
(Increase) decrease in due from
other funds/governmental units
(176,939)
(41,553)
33,286
(185,206)
(10,454)
(Increase) decrease in inventory
& prepaid items
(79,639)
(45,131)
(124,770)
(269,788)
Increase (decrease) in vouchers
retainage payable
43,366
(43,352)
14
171,228
Increase (decrease) in due to
other funds/governmental units
(43,771)
-
(8,400)
(52,171)
-
Increase (decrease) in payables
& other short-term liabilities
(681,467)
88,478
60,782
(532,207)
Increase (decrease) in
customer deposits
-
19,354
19,354
-
Increase (decrease) in
deferred revenues
(85,495)
-
(26,546)
(112,041)
590,820
Increase (decrease)in accrued
employee leave benefits
45,254
14,047
3,080
62,381
-
Total adjustments
$
4,478,187
$ 169,155
$ 548,107
$
5,195,449
$
3,133,663
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
$
9,003,686
$ (269,611)
$ 297,600
$
9,031,675
$
4,317,427
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Capital disposal and retirement
$
89,549
$
$ -
$
89,549
$
-
Contributions of capital assets
1,730,360
1,730,360
Net amort. bond prem. discount & bond issue costs
270,715
270,715
-
Increase in fair value of investments
42,849
2,379
-
45,228
2,061,628
Depreciation
5,530,612
1,313
723,678
6,255,603
-
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-16
2007 Comprehensive Annual Financial Report
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
December 31, 2007
ASSETS
Cash & cash equivalents
Investments at fair value:
Federal National Mortgage Association
US Treasury Strips
Interest on investments
TOTAL ASSETS
LIABILITIES
Vouchers & contracts payable
Deposits payable
TOTAL LIABILITIES
NET ASSETS
Held in trust for pension benefits
& other purposes
PENSION TRUST
AGENCY
FIREFIGHTER'S
SPECIAL
PENSION
DEPOSITS
$ 1,387,880
$ 728,050
134,821
-
4,124,729
2,521,487
-
$ 8,168,917
$ 728,050
$ -
$ 62,166
665,884
$
$ 728,050
$ 8,168,917 $
City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-17
2007 Comprehensive Annual Financial Report
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIREMEN'S PENSION FUND
For the Year Ended December 31, 2007
PENSION TRUST
FIREMEN'S
PENSION
ADDITIONS:
Other contributions:
Fire insurance premiums transferred it $ 85,062
Investment income
Investment earnings 672,903
TOTAL ADDITIONS $ 757,965
DEDUCTIONS:
Benefit payments
Medical benefit payments
Administrative and general
TOTAL DEDUCTIONS
NET INCREASE (DECREASE)
NET ASSETS - JANUARY 1
NET ASSETS - DECEMBER 31
$ 427,012
9,059
16,226
$ 452,297
$ 305,668
$ 7,863,249
$ 8,168,917
City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-18
2007 Comprehensive Annual Financial Report City of Renton, Washington
NOTES TO THE FINANCIAL STATEMENTS
January 1, 2007 through December 31, 2007
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 statutes, 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. 49, with the
exception of GASB Statement No. 45. The City is required to implement Statement No. 45:
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions in 2008. All other applicable statements were implemented prior to 2007.
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.
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-19
2007 Comprehensive Annual Financial Report City of Renton, Washington
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, reconciliation is presented at the end of the
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-20
2007 Comprehensive Annual Financial Report City of Renton, Washington
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 utilities. 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
If oil 01.7►i►VI I OWN W_1 a 01 "0117.E
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 legislative and executive departments, court services,
finance and legal departments, development services, police and fire departments, human
resources and technical services, community services, parks, economic development, streets,
library and museum, parking garage maintenance, fire memorial, and fire department's health
and wellness programs. The major sources of revenue are property taxes, utility taxes, and sales
taxes. Licenses and permits, charges for services, and fines and forfeits provide additional
support. Community development block grant activities are accounted for within this fund,
which is federally funded.
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.
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-21
2007 Comprehensive Annual Financial Report City of Renton, Washington
TRANSPORTATION CAPITAL IMPROVEMENT FUND
This fund supports the City of Renton transportation projects and projects linked with various
State and Federal funding programs. Many of the projects depend on grants, LIDs, and
mitigation revenue.
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.
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.
LEASED CITY PROPERTY FUND
Accounts for revenue and expenditures related to City property leased to outside entities.
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.
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-22
2007 Comprehensive Annual Financial Report City of Renton, Washington
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.
SPRINGBROOK WETLANDS BANK FUND
The City of Renton established this fund in 2007 for the purpose of providing accounting for the
Springbrook Creek Wetland and Habitat Mitigation Bank project. The fund will receive revenue
by selling Wetlands Credits to third parties and to the City's internal departments.
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.
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 issue for equipment and the 1986 Limited
Bond issue to finance a community center, library improvements, permanent financing for
purchase of a golf course, acquisition of wetland property, and equipment. This fund also
includes the 1978 Limited General Obligation Bond Redemption issue to account for debt
service on a Council -approved bond, which provided partial funding for construction of the
Renton Senior Activity Center and the 1978 Limited General Obligation Bond Redemption issue
to account for debt service on a Council -approved bond, which provided partial funding for
construction of the Renton Senior Activity Center.
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.
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.
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-23
2007 Comprehensive Annual Financial Report City of Renton, Washington
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 that are
charged to departments based on use and/or coverage requirements.
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.
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-24
2007 Comprehensive Annual Financial Report
AGENCY FUND
City of Renton, Washington
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
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
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-25
2007 Comprehensive Annual Financial Report City of Renton, Washington
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).
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.
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-26
2007 Comprehensive Annual Financial Report
4. Inventories and prepaid items
All City inventories are maintained on
City of Renton, Washington
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.
Fund Reserved Purpose of Reservation Amount
General Fund Prepaid Postage $ 8,000
So Lk WA Interfund loan 975,000
Infrastructure Fund
TOTAL $ 983,000
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-27
2007 Comprehensive Annual Financial Report City of Renton, Washington
Fund Designated
Purpose of Designation
Amount
General Fund
Operating cash reserves
$8,190,664
General Fund
Housing initiative reserves
200,000
General Fund
Performing Arts Center revenue funds
50,000
General Fund
Neighborhood gathering equipment
10,000
Municipal Facilities Fund
Acquisition and development of City facilities
14,820,688
Municipal Facilities Fund
Highlands Redevelopment
1,500,000
Municipal Facilities Fund
Lake Washington Dry Docks
200,000
Capital Improvement Fund
City Infrastructure
4,355,803
Community Development Impact Mitigation Fund
Offset impact created by new development
1,498,187
Fire Impact Mitigation Fund
Offset impact created by new development
2,344,289
Transportation Mitigation Fund
Offset impact created by new development
4,756,973
Arterial Street Fund
Construction and improvements of streets
476,327
Leased City Properties Fund
Leased Property
1,155,934
Hotel/Motel Tax Fund
Increase Tourism
348,017
Paths and Trails Fund
Acquisition and maintenance of paths and
trails
3,182
Springbrook Wetlands Bank Sale of Wetland Credits 448,000
1% For Art Fund Funding for art projects 121,357
Cable Communications Development Fund Promotion and development of cable 63,779
communications
1989 Unlimited General Obligation Bond Low income housing 613,561
Redemption Fund
General Governmental Miscellaneous Debt Service Parking Garage Construction 779,354
TOTAL $41,936,115
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
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.
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-28
2007 Comprehensive Annual Financial Report City of Renton, Washington
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 principal and interest payments, or purchases of capital items. Proprietary
expenditures are classified as operating or non-operating.
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 under Generally Accepted Accounting Principles (GAAP)
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 GAAP Basis verses Actual GAAP Basis of Accounting for all legally adopted
budgets. There have been no material violations of finance -related legal or contractual
provisions, and there have been no expenditures exceeding legal appropriations in any of the
funds of the City.
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.
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-29
2007 Comprehensive Annual Financial Report
City of Renton, Washington
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 GAAP basis of accounting. Any comparisons between budget and actual revenues and
expenditures are reported under the GAAP 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 19 times during 2007.
Original budgeted inflows as compared to the final budgeted inflows are as follows:
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-30
Increase
Original
Final
(Decrease)
Budgeted
Budgeted
Budgeted
Fund
Inflows
Inflows
Inflows
General Fund
$76,047,584
$76,435,740
$388,156
Arterial Street Fund
565,000
565,000
0
Leased City Properties Fund
960,899
1,367,887
406,988
Hotel/Motel Tax Fund
255,000
295,000
40,000
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
General Government Miscellaneous Debt Service Fund
4,363,265
4,363,908
643
1989 UGO Bond Redemption Fund
521,000
521,000
0
Downtown Parking Garage
0
0
0
Community Development Impact Mitigation Fund
255,000
255,000
0
Fire Impact Mitigation Fund
540,000
540,000
0
Transportation Impact Mitigation Fund
600,000
600,000
0
Aquatic Center Fund
0
0
0
Municipal Facilities Construction Fund
4,232,000
3,583,335
(648,665)
General Government Capital Improvement Fund
17,989,100
29,232,715
11,243,615
South Lake Washington Infrastructure Project Fund
2,892,400
7,925,220
5,032,820
Airport Fund
2,454,191
2,454,191
0
Solid Waste Utility Fund
9,565,016
10,343,016
778,000
Golf Course Fund
2,618,465
2,618,465
0
Waterworks Utility Fund
42,367,375
53,908,375
11,541,000
Equipment Repair and Replacement/ IS Fund
7,232,091
7,232,091
0
Insurance Fund
12,545,750
12,545,750
0
TOTAL
$186,103,036
$214,885,593
$28,782,557
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-30
2007 Comprehensive Annual Financial Report
City of Renton, Washington
Original budgeted outflows as compared to the final budgeted outflows are as follows:
Fund
Increase
Original Final (Decrease)
Budgeted Budgeted Budgeted
Outflows Outflows Outflows
General Fund
$76,781,953
$78,063,294
$1,281,341
Arterial Street Fund
565,000
565,000
0
Leased City Properties Fund
703,521
1,464,741
761,220
Hotet/Motel Tax Fund
255,000
280,000
25,000
Paths and Trails Reserve Fund
0
0
0
1% for Art Fund
60,000
84,560
24,560
Cable Communications Development Fund
78,900
177,048
98,148
General Government Miscellaneous Debt Service Fund
6,070,465
6,071,108
643
1989 UGO Bond Redemption Fund
521,000
521,000
0
Downtown Parking Garage
180,000
180,000
0
Community Development Impact Mitigation Fund
1,100,000
711,038
(388,962)
Fire Impact Mitigation Fund
300,000
300,000
0
Transportation Impact Mitigation Fund
3,035,600
3,500,000
464,400
Aquatic Center Fund
192,000
192,297
297
Municipal Facilities Construction Fund
5,050,497
6,990,848
1,940,351
General Government Capital Improvement Fund
23,102,100
33,528,300
10,426,200
South Lake Washington Infrastructure Project Fund
13,313,927
16,871,309
3,557,382
Airport Fund
3,841,464
3,534,809
(306,655)
Solid Waste Utility Fund
10,917,695
10,982,188
64,493
Golf Course Fund
2,644,465
2,673,871
29,406
Waterworks Utility Fund
41,967,923
54,696,673
12,728,750
Equipment Repair and Replacement/ IS Fund
8,011,405
9,207,123
1,195,718
Insurance Fund
11,664,387
11,664,387
0
TOTAL
$210,357,302
$242,259,594
$31,902,292
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. This allows for investment of excess cash and inactive cash, directs that the
responsibility for determining available cash for investment is placed upon the department
administering the funds, and allows for pooling of the cash provided that the allocation of
income is proportionate to the investment of each fund.
Currently, the City invests in obligations of the U.S. Government, U.S. agency issues,
Certificates of Deposit with Washington State banks and savings and loan institutions, the State
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-31
2007 Comprehensive Annual Financial Report City of Renton, Washington
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, 2007, the City of Renton had the following investments:
Security Type
Cost
Fair Value
Weighted Average
Maturity (in years)
US Agencies
Certificates of Deposit (within WPDPC)
Local Governmental Investment Pool (LGIP)*
$26,036,646
33,000,000
22,393,105
$26,312,340
33,000,000
22,393,105
0.5486
0.6317
0.0008
TOTAL
$81,429,751
$81,705,445
1.1810
Firemen's Pension portion ofLGIP excludedfrom above
454,767
454,767
Federal Farm Credit Bank
Total LGIP reported as Cash & Cash Equivalents in Statement of Net Assets
(22,847,872)
(22,847,872)
AAA
Investments reported in Statement of Net Assets
$59,036,646
$59,312,340
Aaa
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.
Security Type
Cost
Fair Value
Moody's
S&P
Federal National Mortgage Association
$7,032,445
$7,089,670
Aaa
AAA
Federal Home Loan Bank
6,993,771
7,049,700
Aaa
AAA
Federal Farm Credit Bank
10,001,550
10,156,250
Aaa
AAA
Federal Home Loan Mortgage Corporation
2,008,880
2,016,720
Aaa
AAA
Local Governmental Investment Pool (LGIP)
11,843,248
11,843,248
unrated
unrated
Municipal Investor Account (MIA) 10,549,857 10,549,857 unrated unrated
Certificates of Deposit (within WPDPC) 33,000,000 33,000,000 unrated unrated
TOTAL 81,429,751 81,705,445
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-32
2007 Comprehensive Annual Financial Report City of Renton, Washington
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 are held by a third -parry
custodian 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 with the over -investment of
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.
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
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-33
0-6
6 months —
1-3
3+
Security Type
months
1 year
years
years
Totals
US Agencies
$0
$4,974,404
$21,062,243
$0
$26,036,646
Certificates of Deposit (within WPDPC)
5,000,000
4,000,000
24,000,000
0
33,000,000
Local Governmental Investment Pool
22,393,105
0
0
0
22,393,105
(LGIP)
TOTAL
$27,393,105
$8,974,404
$45,062,243
$0
$81,429,751
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
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-33
2007 Comprehensive Annual Financial Report City of Renton, Washington
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 which
restricted individual taxing districts from collecting, in any year, more than a one percent
increase in their regular, non -voted, levy over the highest levy amount since 1985 was
overturned by the courts. However during 2007, the state legislature reinstated this limit with
the passage of HB2416. New construction, annexations, and excess levies approved by the
voters are not included in the levy limit calculation. If the assessed valuation increases by
more than one percent due to revaluation, the levy rate will be decreased.
2. The One Percent Constitution Limit: The Washington State Constitution limits the regular
(non -voted) combined property tax rate applied to an individual's property to one percent
($10 per $1,000) on the market valuation. Voters may approve special levies that are added
to this figure. If the taxes of all districts exceed this amount, each is proportionately reduced
until the total is at or below the one percent limit.
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations. The City's regular
levy for 2008 is $2.57052 and the excess levy for General Obligation Bond debt is $.05330 for a
total of $2.62382, per the King County Assessor's 2008 Annual Report.
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-34
2007 Comprehensive Annual Financial Report City of Renton, Washington
NOTE 5. CAPITAL ASSETS AND DEPRECIATION
A. GENERAL POLICIES
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 original historical cost 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. The infrastructure component of GASB 34 for assets acquired
after January 1, 1980 was implemented retroactively in 2004.
C. PROPRIETARY FUND CAPITAL ASSETS
Capital assets of proprietary funds are capitalized in their respective statement of net assets, net
of depreciation.
D. DEPRECIATION
Depreciation on all depreciable assets is provided on the straight-line basis over the following
useful lives:
Estimated
Type of Asset 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
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-35
2007 Comprehensive Annual Financial Report City of Renton, Washington
Depreciation Expense was charged to governmental and business -type activities as follows:
Governmental Activities Amount
General government
$3,626,549
Judicial
0
Security of persons and property
654,628
Physical environment
15,652
Transportation
2,297,624
Economic development
295,027
Culture and recreation
1,317,283
Health and human services
47,781
TOTAL Governmental Activities Depreciation Expense
$8,254,544
Business -type Activities
Amount
Waterworks
$5,530,611
Airport
409,810
Solid waste
1,313
Golf course
313,868
TOTAL Business -type Activities Depreciation Expense
$6,255,602
E. SUMMARY OF CHANGES
Description
Beginning
Increases
Decreases
Ending Balance
Balance
GOVERNMENTAL ACTIVITIES
Capital assets not being depreciated:
Land and land improvements
$85,936,207
$3,011,287
$0
$88,947,494
Construction in progress
24,371,783
34,898,679
17,377,423
41,893,039
TOTAL capital not being depreciated
$110,307,990
$37,909,966
$17,377,423
$130,840,533
Other capital assets:
Buildings and structures
$73,623,764
$727,840
$0
$74,351,604
Other improvements
112,044,247
4,486,083
23,464
116,506,866
Machinery and equipment
26,763,698
6,573,815
4,231,159
29,106,354
TOTAL other capital assets at capitalized cost
$212,431,709
$11,787,738
$4,254,623
$219,964,824
Less accumulated depreciation for:
Buildings and structures
$20,079,548
$1,915,174
$0
$21,994,722
Other improvements
34,796,666
3,134,059
0
37,930,725
Machinery and equipment
14,497,276
4,846,977
2,465,956
16,878,297
TOTAL accumulated depreciation
$69,373,490
$9,896,210
$2,465,956
$76,803,744
Governmental activities capital assets, net of
$253,366,209
$39,801,494
$19,166,090
$274,001,613
depreciation
BUSINESS -TYPE ACTIVITIES
Capital assets not being depreciated:
Land and land improvements
$6,976,321
$0
$0
$6,976,321
Construction in progress
4,126,115
3,432,579
1,859,404
5,699,290
TOTAL capital assets not being depreciated
$11,102,436
$3,432,579
$1,859,404
$12,675,611
Other capital assets
Buildings and structures
$15,032,621
$0
$0
$15,032,621
Other improvements
269,748,039
10,915,525
140,751
280,522,813
Machinery and equipment
5,864,463
73,792
0
5,938,255
TOTAL other capital assets at capitalized cost
$290,645,123
$10,989,317
$140,751
$301,493,689
Less accumulated depreciation for:
Buildings and structures
$3,901,075
$332,535
$0
$4,233,610
Other improvements
67,876,503
5,771,871
89,549
73,558,825
Machinery and equipment
4,908,012
151,197
0
5,059,209
TOTAL accumulated depreciation
$76,685,590
$6,255,603
$89,549
$82,851,644
Business -type capital assets, net of depreciation
$225,061,969
$8,166,293
$1,910,606
$231,317,656
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-36
2007 Comprehensive Annual Financial Report City of Renton, Washington
At the end of 2007, 80 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, 2007, are as follows:
NOTE 6. PENSION PLANS
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. 27, Accounting for
Pensions by State and Local Governmental 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.
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-37
Estimated
Future
Cost to
Remaining
Estimated
Funding
Fund — Funding Source
Date
Cost
Total Cost
Required
Waterworks—charges for services
$4,436,146
$61,060,000
$65,496,146
None
Airport — charges for services
1,211,941
11,990,000
13,201,941
None
General governmental — taxes, charges for
26,919,024
190,564,000
217,483,024
None
services, grants
Golf course — charges for services
51,202
2,275,000
2,326,202
None
NOTE 6. PENSION PLANS
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. 27, Accounting for
Pensions by State and Local Governmental 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.
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-37
2007 Comprehensive Annual Financial Report City of Renton, Washington
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, 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. Plan 1 retirements from inactive status prior to the age of 65 may receive
actuarially reduced benefits. The benefit is actuarially reduced to reflect the choice of a survivor
option. A cost -of -living allowance (COLA) is granted at age 66 based on years of service credit
times the COLA amount, increased by three percent annually. Plan 1 members may also elect to
receive an additional COLA amount (indexed to the Seattle Consumer Price Index), capped at 3
percent annually. To offset the cost of this annual adjustment, the benefit is reduced.
Plan 2 members are vested after completion of 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 two 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 three 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 a cost -of -living allowance is
granted (indexed to the Seattle Consumer Price Index), capped at three 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 one percent of the average final compensation per year
of service. The average final compensation is based on the greatest compensation during any
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-38
2007 Comprehensive Annual Financial Report City of Renton, Washington
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
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 of service, a three 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.
Judicial Benefit Multiplier
Beginning January 1, 2007 through December 31, 2007 judicial members of PERS may choose
to participate in the Judicial Benefit Program (JBM). Current justices or judges in PERS 1 and 2
may make a one-time irrevocable election to pay increased contributions that would fund a
retirement benefit with a 3.5 percent multiplier. The benefit would be capped at 75 percent of
average financial compensation. Judges in PERS Plan 3 can elect a 1.6 percent of pay per year
of service benefit, capped at 37.5 percent of average compensation.
Members who choose to participate in JBM will accrue service credit at a higher multiplier
beginning with the date of their election, pay higher contributions to the Judicial Retirement
Account (JRA), and be given the option to increase the multiplier on past judicial service.
Members who do not choose to participate will: continue to accrue service credit at the regular
multiplier; continue to participate in JRA, if applicable; never be a participant in the JBM
Program; and continue to pay contributions at the regular PERS rate.
Justice and judges who are newly elected or appointed to judicial service and choose to become
PERS members on or after January 1, 2007, or who have not previously opted into PERS
membership, are required to participate in the JBM Program.
Justice and judges who are newly elected or appointed to judicial service will: return prior PERS
Plan if membership and previously been established; be mandated into Plan 2 and not have a
Plan 3 transfer choice, if a new PERS member; accrue the higher multiplier for all judicial
service; not contribute to JRS; and no t have the option to increase the multiplier for past judicial
04-1 1404
There are 1,188 participating employers in PERS. Membership in PERS consisted of the
following as of the latest actuarial valuation date for the plans of September 30, 2006:
Retirees and beneficiaries receiving benefits 70,201
Terminated plan members entitled to but not yet receiving benefits 25,610
Active plan members vested 105,215
Active plan members non -vested 49,812
TOTAL 250,838
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-39
2007 Comprehensive Annual Financial Report City of Renton, Washington
Funding PP licy
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 officials.
The employer and employee contribution rates for Plan 2 and the employer contribution rate 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, 2007, were as follows:
Members not participating in JBM:
Contributor PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer* 6.13%** 6.13%** 6.13***
Employee 6.00%**** 4.15%**** *****
* The employer rates include the employer administrative
expense fee currently at .16%.
** The employer rate for state elected officials is 9.12% for
Plan 1 and 6.13% for Plan 2 & 3.
*** Plan 3 defined benefit portion only.
**** The employee rate for state elected officials in 7.5% for
Plan 1 and 4.15% for Plan 2.
***** Variable from 5.0% minimum to 15.0% maximum based
on rate selected by the PERS 3 member.
Members participating in JBM:
Contributor PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer -Local Govt.* 6.13% 6.13% 6.13%**
Employee -Local Govt. 12.26% 10.38% 7.50%***
* The employer rates include the employer administrative
expense fee currently at .16%.
** Plan 3 defined benefit portion only.
* * * Minimum rate.
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
2007 $85,411 $1,229,641 $196,584
2006 $50,609 $616,903 $92,216
2005 33,340 367,240 51,521
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-40
2007 Comprehensive Annual Financial Report
City of Renton, Washington
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 retirement benefits are financed from a combination of investment
earnings, employer and employee contributions, and a special funding situation in which the
state pays through state legislative appropriations. LEOFF retirement benefit provisions are
established in state statute and may be amended by the State Legislature.
Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members
are eligible for retirement with five years of service at the age of 50. The benefit per year of
service calculated as a percent of final average salary is as follows:
Percent of Final
Term of Service 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 ten 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 the completion of 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 two 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 actuarially reduced for each year that the benefit commences prior to age 53 and to
reflect the choice of a survivor option. If the member has at least 20 years of service credit and
is age 50, the reduction is three percent for each year prior to age 53. There is no cap on years of
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-41
2007 Comprehensive Annual Financial Report City of Renton, Washington
service credit; and a cost -of -living allowance is granted (indexed to the Seattle Consumer Price
Index), capped at 3 percent annually.
There are 383 participating employers in LEOFF. Membership in LEOFF consisted of the
following as of the latest actuarial valuation date for the plans of September 30, 2006:
Retirees and beneficiaries receiving benefits 8,951
Terminated plan members entitled to but not yet receiving benefits 602
Active plan members vested 12,711
Active plan members non -vested 3,603
TOTAL $25,867
Funding PPglicy
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. All employers are required
to contribute at the level required by state law. The Legislature has by means of a special
funding arrangement appropriated money from the state General Fund to supplement the current
service liability and fund the prior service cost of Plan 2 in accordance with the requirements of
the Pension Funding Council and the LEOFF Plan 2 Retirement Board. 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, 2007, were as follows:
Contributor LEOFF Plan 1 LEOFF Plan 2
Employer* .16% 5.35%**
Employee .00% 8.64%
State N/A 3.45%
* The employer rates include the employer
administration expense fee currently at .16%.
** The employer rate for ports and universities is 8.80%.
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
2007 $1,676 $891,932
2006 $2,050 $716,583
2005 2.554 549.001
Public Safety Employee's Retirement System (PSERS,) Plan 2
Plan Description
PSERS was created by the 2004 legislature and became effective July 1, 2006. PSERS is a cost-
sharing multiple -employer retirement system comprised of a single defined benefit plan, PSERS
Plan 2.
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-42
2007 Comprehensive Annual Financial Report
City of Renton, Washington
PSERS Plan 2 membership includes full-time employees of a covered employer on or before
July 1, 2006, who met at least one of the PSERS eligibility criteria, and elected membership
during the election period of July 1, 2006 to September 30, 2006; and those full-time employees,
hired on or after July 1, 2006 by a covered employer, that meet at lease one of the PSERS
eligibility criteria.
A "covered employer" is one that participates in PSERS. Covered employers include: State of
Washington agencies: Department of Corrections, Department of Natural Resources, Parks and
Recreation Commission, Gambling Commission, Washington State Patrol, Liquor Control
Board; Washington state counties; and Washington state cities except for Seattle, Tacoma and
Spokane.
To be eligible for PSERS, an employee must work on a full-time basis and:
• have completed a certified criminal justice training course with authority to arrest,
conduct criminal investigations, enforce that criminal laws of Washington, and carry a
firearm as part of the job: or
• have primary responsibility to ensure the custody and security or incarcerated or
probationary individuals; or
• function as a limited authority Washington peace officer, as defined in RCW 10.93.020;
or
• have primary responsibility to supervise eligible members who meet the above criteria.
PSERS defined benefit retirement benefits are financed from a combination of investment
earnings and employer and employee contributions. PSERS retirement benefit provisions are
established in state statute and may be amended only by the State Legislature.
Plan 2 members are vested after the completion of five years of eligible service. PSERS Plan 2
members may retire at the age of 65 with five years of service, or at the age of 60 with at least 10
years of PSERS service credit, with an allowance of two percent of the average final
compensation per year of service. The average final compensation is the monthly average of the
member's 60 consecutive highest-paid service credit months, excluding any severance pay such
as lump -sum payments for deferred sick leave, vacation or annual leave. Plan 2 retirees prior to
the age of 60 receive reduced benefits. If retirement is at age 53 or older with at least 20 years of
service, a three percent per year reduction for each year between the age at retirement and age 60
applies. There is no cap on years of service credit; and a cost -of -living allowance is granted
(indexed to the Seattle Price Index), capped at three percent annually.
There are 69 participating employers in PSERS. Membership is PSERS consisted of the
following as of the latest actuarial valuation date for the plan of September 30, 2006:
Retirees and beneficiaries receiving benefits 0
Terminated plan members entitled to but not yet receiving benefits 0
Active plan members vested 0
Active plan members non -vested 2,073
TOTAL 2,073
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-43
2007 Comprehensive Annual Financial Report
City of Renton, Washington
Funding Policy
Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee
contribution rates. The employer and employee contribution rates for Plan 2 are developed by
the Office of the State Actuary to fully fund Plan 2. All employers are required to contribute at
the level established by the Legislature. The methods used to determine the contribution
requirements are established under state statute in accordance with chapters 41.37 and 41.45
RCW.
The required contribution rates expressed as a percentage of current year covered payroll, as of
December 31, 2007 were as follows:
Contributor PSERS Plan 2
Employer* 8.55%
Employee 6.57%
* The employer rates include the employer administrative
expense fee currently at .16%.
Both the City and the employees made the required contributions. The City's required
contributions for years ended December 31, were as follows:
Year PSERS Plan 2
2007 $41,424
2006 $8,006
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
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, 2007, there were 42
members in the System:
Retirees and beneficiaries receiving benefits 40
Retirees and beneficiaries currently receiving full retirement through LEOFF 2
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
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-44
2007 Comprehensive Annual Financial Report City of Renton, Washington
pension obligations. Costs of administering the Firefighter's Pension Plan are paid by the Plan.
For 2007, this cost was $16,226.
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:
* 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.
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.
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-45
Unfunded
Actuarial
Actuarial
Actuarial
Value of
Accrued
Accrued
Covered
UAAL
Assets
Liabilities
Liabilities
Payroll
as
Valuation
(rounded
Entry Age
(UAAL)
(rounded
a % of
Date
to
(rounded to
(rounded
Funded
to
Covered
January 1
thousands)
thousands)
to
Ratio
thousands)
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.
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.
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-45
2007 Comprehensive Annual Financial Report City of Renton, Washington
Fiscal Year Fiscal Year Fiscal Year
Ending Ending Ending
Annual required contribution (ARC) 12/31/2005 12/31/2006 12/31/2007
Annual normal cost (BOY)
Amortization of UAAL (BOY)
Interest to end of year (EOY)*
$0
(107,622)
(5,919)
$0
(107,622)
(5,919)
$0
(104,731)
(5,237)
ARC at EOY
($113,541)
($113,541)
($109,968)
Interest on NPO
Adjustment to ARC
($24,553)
(31,545)
($33,604)
(44,035)
($38,658)
(54,591)
Annual pension cost (APC)
($106,649)
($103,110)
($94,035)
Employer contributions**
Change in NPO
$58,029
(164,578)
$59,068
(162,178)
$59,777
(153,812)
NPO at BOY prior year
($446,410)
($610,988)
($773,166)
NPO at EOY
($610,988)
($773,166)
($926,978)
* Assumed interest rate: 5.5% in 2005 and 2006, 5.0% in 2007
** 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
Annual Total Change
Ending
ARC @
Interest on
ARC
Pension
Employer
in
12/31
EOY
NPO
Adjustment
Cost (APC)
Contributions
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
(109,968)
(38,658)
(54,591)
(94,035)
59,777
(153,812)
Fiscal Year
Pension
Percentage
Obligation
Amort.
Cost (APC)
Ending
(NPO)
2005
($106,549)
of
($610,988)
December
NPO
(Gain)/
Amort.
(Gain)/
Ending
31
Balance
Loss
Factor***
Loss
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
(926,978)
(169,745)
14.1630
(54,591)
(926,978)
Three year trend information is recapped as follows:
Contribution Net
Fiscal Year Annual as a Pension
Ending
Pension
Percentage
Obligation
December 31
Cost (APC)
of APC
(NPO)
2005
($106,549)
N/A
($610,988)
2006
(103,110)
N/A
(773,166)
2007
(94,035)
N/A
(926,978)
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-46
2007 Comprehensive Annual Financial Report City of Renton, Washington
Employees are not required to make contributions. The contributions to the System for 2007
include $85,062 from fire insurance premiums and $672,903 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 2007, $427,012 was paid for benefit payments and $9,059 for
medical payments.
The Net Pension Obligation moves from ($773,166) to ($926,978) 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 96 LEOFF I 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 $1,448,660 were recognized for post employment
health care.
State statute provides that the City's responsibility for medical payments of LEOFF I retirees is
secondary to any other coverage retirees receive or are eligible to receive. The City recognizes a
potential savings exists when retirees utilize Medicare as primary coverage and the City for
secondary coverage and ineligible expenses. Therefore, upon reaching age 65, the City requires
the retirees to apply for and utilize Medicare Part B coverage. The City reimburses these
Medicare premiums at an average cost of approximately $93.50 per month for 50 LEOFF 1
retirees and 5 Fire Pension retirees.
NOTE 8. CONTINGENCIES
Liti ag tion
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.
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-47
2007 Comprehensive Annual Financial Report
Bond Indentures
City of Renton, Washington
The City is in compliance with all significant bond indenture and restrictions, with the following
exception. Golf Course net revenues in 2007 were severely impacted by inclement weather,
causing it to be temporarily out of compliance with the bond debt service coverage covenant of
125% of annual debt service at the end of 2007. The City has raised rates and has a business
plan and strategy that aims to adjust and maintain coverage.
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:
Expires 12/31/2008
Risk
Authority
Authority
Jail (Police Professional
Retention
WA Cities Ins
$1,000,000
WA Cities Ins
Type of Coverage
Occurrence
Claims Administrator
Aggregate Amount
Carrier
Property — Expires
$25,000
WA Cities Ins
$500,000,000 (per
WA Cities Ins
12/31/2008
Authority
occurrence subject to
Authority
Crime —Expires 1/1/2010
10,000
Arthur J. Gallagher
annual aggregate &
Travelers
sub -limits)
Casualty & Surety
Liability— Expires
250,000
WA Cities Ins
$20,000,000
WA Cities Ins
12/31/2008
Authority
(per occurrence)
Authority
Auto Liability — Expires
25,000
WA Cities Ins
ACV or Replacement
WA Cities Ins
12/31/2008
Authority
Cost; per Occurrence
Authority
Public Officials (E&O) —
$250,000
WA Cities Ins
$10,000,000
WA Cities Ins
Expires 12/31/2008
Authority
Authority
Jail (Police Professional
$10,000
WA Cities Ins
$1,000,000
WA Cities Ins
Liability) - Expires 6/1/2008
Authority
Authority
Equipment breakdown —
5,000*
Arthur J. Gallagher
$50,000,000
Zurich
Expires 1/1/2009
Crime —Expires 1/1/2010
10,000
Arthur J. Gallagher
$1,000,000
Travelers
Casualty & Surety
Airport liability — Expires
0
Arthur J. Gallagher
$100,000,000
Ace Property &
1/1/2009
Casualty
Underground storage tank —
5,000
Arthur J. Gallagher
$2,000,000
Commerce &
Expires 1/1/2009
Industry
Worker's comp — Expires
350,000
Berkley Risk
$1,000,000
Midwest Casualty
1/1/2009
Employee health — Expires
150,000
HMA, Inc
N/A
SunLife
1/1/2009
* There is a 4 -hour utility interruption clause, prior to the deductible becoming applicable
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-48
2007 Comprehensive Annual Financial Report City of Renton, Washington
During 2007, 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 126
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, stop gap, and employee benefits
liability. Limits are $3 million per occurrence self insured layer, and $12 million per occurrence
in the re -insured excess layer. The excess layer is insured by the purchase of reinsurance and
insurance and is subject to aggregate limits. 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
$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.
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-49
2007 Comprehensive Annual Financial Report City of Renton, Washington
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, 2007, the City had accrued the following
amounts for outstanding claims:
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
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-50
Total Claims
Coverage
Payable 12/31/2007
Property & liability
$792,487
Worker's compensation
794,043
Employee health
1,399,425
TOTAL
$2,985,955
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
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-50
Property &
Worker's
Employee
2007
Liability
Compensation
Health
Totals
IBNR claims at beginning of the year
$537,693
$765,089
$1,325,000
$2,627,782
Current year and changes in estimates
1,662,228
863,439
1,739,459
4,265,126
Claims payments
(1,407,434)
(834,485)
(1,665,034)
(3,906,953)
IBNR claims at end of the year
$792,487
$794,043
$1,399,425
$2,985,955
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
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-50
Property &
Worker's
Employee
2006
Liability
Compensation
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
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
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-50
2007 Comprehensive Annual Financial Report
City of Renton, Washington
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, 2007, outstanding interfund balances (resulting from various interfund
transactions) were as follows:
The following is a recap of interfund loans:
Fund
Municipal facilities CIP
South Lake WA
infrastructure
Interfund loans
Receivable
$975,000
Interfund
loans Pavab
$0 Interfund Loan to South lake WA
infrastructure fund
975,000 Interfund Loan from Municipal facilities CIP
fund
TOTAL* $975,000 $975,000
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-51
Receivables
Payables
Due From
Due To
Other
Other
Fund
Funds
Funds
Purpose
General fund
$6,905
$0
To accrue 2007 interfund services provide, paid for in 2008
Springbrook
Wetlands
448,000
0
Wetland credits sold to Transportation CIP Fund in 2007.
Transportation CIP
0
448,000
Wetland credits sold to Transportation CIP Fund in 2007.
Waterworks utility
0
6,905
To accrue 2007 interfund services provide, paid for in 2008
Insurance
18,060
18,060
To accrue 2007 interfund services provide, paid for in 2008
TOTAL*
$472,965
$472,965
*Difference is the result of rounding individual
fund numbers in the aggregate.
The following is a recap of interfund loans:
Fund
Municipal facilities CIP
South Lake WA
infrastructure
Interfund loans
Receivable
$975,000
Interfund
loans Pavab
$0 Interfund Loan to South lake WA
infrastructure fund
975,000 Interfund Loan from Municipal facilities CIP
fund
TOTAL* $975,000 $975,000
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-51
2007 Comprehensive Annual Financial Report
Transfers for 2007 were as follows:
City of Renton, Washington
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.
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.
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-52
Transfer
Transfer
Fund
In
Out
Purpose
General
$480,355
$480,355
Conversion of Special Revenue funds into
General Governmental Funds
Arterial street
0
565,000
Contribution for CIP Overlay Projects
1% for Art
60,000
0
From Transportation CIP for Art
General debt
1,898,688
2,314,108
Contribution for Debt payments and CIP
Projects
Downtown Parking Garage
0
179,660
Transfer of Fund Balance to CIP Fund 316
Aquatic Center
0
192,297
Transfer of Fund Balance to CIP Fund 316
Fire Impact
0
300,000
Contribution for Fire Impact Debt Payments
Transportation Impact
0
500,000
Contribution to Transportation CIP
Transportation CIP
1,065,000
60,000
Contribution for Capital Improvements,
Contribution for 1% Art project
Municipal CIP
1,871,957
0
Contribution for Capital Improvements
South Lake WA Infrastructure
0
784,580
Contribution for South lake WA infrastructure
Debt Payments
Leased property services
406,988
406,988
Transfer of Fund Balance to the new Fund 108
TOTAL
$5,782,988
$5,782,988
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.
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.
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-52
2007 Comprehensive Annual Financial Report
Restricted assets are as follows:
City of Renton, Washington
Fund
Purpose
Amount
Hotel / Motel Tax
Tourism
$348,017
Arterial Street
Road construction
476,327
Cable Communications
Cable development
63,779
Paths and Trails
Acquire and maintain city trails
3,182
Springbrook Wetlands Bank
Accounting for wetlands management
448,000
1% for Art
Funding for art projects
121,357
Leased City Properties
Leased to outside source
1,155,934
Community Development Impact
Mitigation for park development
1,498,187
Municipal Facilities
Capital projects
16,520,688
Capital Projects
General governmental capital projects
4,355,803
Parking Garage Construction
Parking Garage Construction
14,802
South Lake Washington
Construction infrastructure for SLW
541,655
Fire Impact
Mitigation for fire improvements
2,344,289
Transportation Impact
Mitigation for transportation projects
4,756,973
Waterworks
Debt service reserves
3,145,309
Golf Course
Debt service reserves
441,358
TOTAL
$36,235,660
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 a prior year restatement within the Equipment Rental Fund in the amount of
$2,534,024. In 2006 capital assets were recorded as general governmental assets rather than
internal service fund assets. This restatement records the assets in the appropriate fund. The
2007 Government -wide Statement of Net Assets was correctly stated, but the Combining
Statement of Revenues, Expenses, and Changes in Fund Net Assets, Internal Service Funds
(page 6-34) required a prior period adjustment to correctly record the assets as being owned by
the Equipment Rental Fund.
NOTE 13. SHORT TERM DEBT
The City of Renton's short-term debt consists of one interfund loan from the Municipal Facilities
CIP Fund to the South Lake Washington Infrastructure Fund, as a means to temporarily fund the
project prior to the receipt of contractual project revenues. This loan of an amount no greater
than $2,000,000 is payable prior to September 15, 2009, and has an annual interest rate equal to
the current rate of interest as established by the State of Washington Investment Pool at the time
that each loan advance is made.
Short-term activities for the year ended December 31, 2007 was as follows:
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-53
Beginning
Ending Balance
Balance
12/31/2007
Debt
01/01/2007
Issued
Redeemed
$2,000,000
$0
$975,000
$0
$975,000
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-53
2007 Comprehensive Annual Financial Report
NOTE 14. LONG TERM DEBT
City of Renton, Washington
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. Outstanding debt issues as
of December 31, 2007, are as follows:
Unlimited
1993 GO Refunding Bonds - Senior Housing 5.20%-6.10% 09/01/93 02/01/09 4,270,000
SUBTOTAL UNLIMITED GO 4,270,000
TOTAL GENERAL OBLIGATION BONDS 62,899,344
Installment Contracts:
Issued
Maturity
Original Issued
Type of Debt
Interest Rates
Date
Date
Amount
GOVERNMENTAL DEBT:
278,172
General Obligation Bonds:
63,177,516
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
4.00%-5.00%
11/06/07
12/01/22
58,629,344
Unlimited
1993 GO Refunding Bonds - Senior Housing 5.20%-6.10% 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
3,660,000
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
2007 Water/Sewer
4.00%-5.00%
11/06/07
12/01/22
1,430,000
2007 Water/Sewer Refunding
4.00%-5.00%
11/06/07
12/01/22
8,320,000
TOTAL REVENUE BONDS
42,940,000
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 27`h/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
5.25
6/15/07
5/15/11
87,800
TOTAL BUSINESS -TYPE DEBT ISSUANCE
60,233,890
TOTAL AMOUNT ISSUED ON OUTSTANDING DEBT AS OF DECEMBER 31, 2007
$123,411,406
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-54
2007 Comprehensive Annual Financial Report City of Renton, Washington
For outstanding debt additions and retirements are summarized as follows:
Balanced Balanced Due
Owed Owed Within
Type of Debt 01/01/2007 Additions Deductions 12/31/2007 One Year
GOVERNMENTAL DEBT:
General Obligation Bonds:
Limited
1997 GO Bonds
1,839,501
0
693,926
1,145,575
655,575
1997 GO Bonds - CAB Long Tenn Interest
1,315,199
113,873
489,673
939,399
594,425
2000 GO Valley Comm Bonds
1,755,000
0
160,000
1,595,000
167,000
2001 GO Refunding Bonds
13,195,000
0
75,000
13,120,000
85,000
2001 GO Bonds
6,000,000
0
0
6,000,000
0
2002 GO Bonds
3,325,000
0
150,000
3,175,000
155,000
2006 GO Bonds
17,980,000
0
0
17,980,000
520,000
SUBTOTAL LIMITED GO
45,409,700
113,873
1,568,599
43,954,974
2,177,000
Unlimited
4,030,000
0
545,000
3,485,000
570,000
1993 GO Refunding Bonds -Senior Housing
1,440,000
0
455,000
985,000
480,000
SUBTOTAL UNLIMITED GO
1,440,000
0
455,000
985,000
480,000
TOTAL GENERAL OBLIGATION BONDS
46,849,700
113,873
2,023,599
44,939,974
2,657,000
Installment Contracts:
Certificates of Participation
49,813
0
32,837
16,976
16,976
TOTAL INSTALLMENT CONTRACTS
49,813
0
32,837
16,976
16,976
Employee Leave Benefits (Primarily General Fund
4,193,995
2,674,446
2,428,017
4,440,424
2,531,042
Obligations)
TOTAL GENERAL OBLIGATION DEBT
51,093,508
2,788,319
4,484,453
49,397,374
5,205,018
BUSINESS -TYPE DEBT:
Revenue Bonds:
1998 Water/Sewer Refunding
4,030,000
0
545,000
3,485,000
570,000
1999 Golf System Refunding
3,090,000
0
285,000
2,805,000
295,000
2002 Water/Sewer
11,500,000
0
8,270,000
3,230,000
110,000
2003 Water/Sewer Refunding
4,885,000
0
1,085,000
3,800,000
1,130,000
2004 Water/Sewer
10,335,000
0
0
10,335,000
0
2007 Water/Sewer
0
1,430,000
0
1,430,000
0
2007 Water/Sewer Refunding
0
8,320,000
0
8,320,000
0
TOTAL REVENUE BONDS
33,840,000
9,750,000
10,185,000
33,405,000
2,105,000
Public Works Trust Fund Loans:
Sierra Heights Sewer Improvements
153,858
0
25,642
128,216
25,642
Central Renton Sewer Replacement
716,420
0
87,483
628,937
87,483
East Renton Interceptor
941,990
0
134,570
807,420
134,570
Dayton Avenue NE
40,825
0
5,103
35,722
5,103
NE 27"'/Aberdeen Drainage Improvements
383,307
0
42,590
340,717
42,590
East Kennydale Interceptor
1,168,543
0
116,855
1,051,688
116,855
Honeycreek Interceptor
968,720
0
96,872
871,848
96,872
Corrosion Control Treatment Facilities
542,926
0
49,357
493,569
49,357
Maplewood Water Improvement
454,514
0
30,301
424,213
30,301
Const. CT Pipeline for Wells
685,917
0
42,870
643,047
42,870
Maplewood Water Improvements
4,635,000
0
257,500
4,377,500
257,500
TOTAL PUBLIC WORKS TRUST FUND LOANS
10,692,020
0
889,143
9,802,877
889,143
OPERATING LEASES:
Golf Course Cart lease
0
87,800
11,726
76,074
20,919
TOTAL OPERATING LEASES
0
87,800
11,726
76,074
20,919
Employee Leave Benefits
462,947
362,318
110,016
715,249
334,446
TOTAL BUSINESS -TYPE DEBT
44,994,967
10,200,118
11,195,885
43,999,200
3,349,508
GRAND TOTALS
$96,088,475
$12,988,437
$15,680,338
$93,396,574
$8,554,526
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-55
2007 Comprehensive Annual Financial Report City of Renton, Washington
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 2008 and 2009 with
an accreted value of $1,250,000, and 1,000,000 respectively. The deep -discount debt is reported
in the Government -wide financial statements in the amount of $1,145,575, net of the remaining
unamortized discount.
SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMMITMENT
As of December 31, 2007, 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.
REFUNDED DEBT
The Water and Sewer Revenue and Refunding Bonds, 2007, were issued on November 6, 2007,
in the aggregate principal amount of $9,750,000. The purpose of issuing the bonds was to
finance improvements to the City's Waterworks Utility and the refunding of certain outstanding
2002 Water and Sewer Revenue Bonds of the City. The aggregate difference between the
refunded and refunding debt is $587,154.31. The total economic gain is $348,797.95 at net
present value.
The refunding portion of the new bond issue proceeds has been placed in an irrevocable trust to
provide for all future debt service payments on certain outstanding 2002 Water and Sewer
Bonds. As a result, the refunded bonds are considered to be defeased and the liability has been
removed from the City's financial statements. As of December 31, 2007, the total amount of
defeased debt outstanding and removed from the financial statements, for this refunding,
amounts to $8,160,000.
ANNUAL DEBT SERVICE REQUIREMENTS
The annual debt service requirements to maturity, including principal and interest, for long-term
debt as of December 31, 2007, are as follows:
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-56
2007 Comprehensive Annual Financial Report
City of Renton, Washington
AMOUNT AVAILABLE FOR DEBT SERVICE
Fund balances that have been reserved for debt repayment are $1,392,915 in the debt service
funds.
NOTE 15 - DEFERRED CHARGES IN PROPRIETARY FUNDS
As of December 31, 2007, the Waterworks Utility Fund had deferred charges and other assets in
the amount of $638,432 for debt issue costs on the 2002-2004 Revenue Bonds. This amount will
be fully amortized by 2022. The Golf Course Fund amount was $35,615 for the 1999 Refunded
Bond debt issue costs and discount. This amount will be fully amortized by 2016.
NOTE 16. SEGMENT INFORMATION
An identifiable activity (or grouping of activities) required to be accounted for separately, which
(a) is reported as or within an enterprise fund; (b) for which one or more revenue bonds are
outstanding; and, (c) where the revenue stream is pledged for payment of, are required to
disclose segment information. The City of Renton has no required segment information to
disclose for 2007.
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 notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-57
Governmental Activities
Business -type
Activities
Year Ending December 31
Principal
Interest
Principal
Interest
2008
2,079,551
2,698,248
3,015,062
1,562,639
2009
2,205,000
2,549,448
3,111,138
1,446,376
2010
2,269,000
1,975,553
3,192,270
1,352,405
2011
2,353,000
1,883,688
3,269,177
1,253,538
2012
2,467,000
1,786,176
3,359,143
1,140,793
2013-2017
13,729,000
6,933,868
9,894,113
4,532,525
2018-2022
11,805,000
3,495,892
8,918,054
2,964,368
2023-2027
5,775,000
1,237,325
8,525,000
1,244,362
2028
1,335,000
66,750
TOTAL
$44,017,551
$22,626,948
$43,283,957
$15,497,006
AMOUNT AVAILABLE FOR DEBT SERVICE
Fund balances that have been reserved for debt repayment are $1,392,915 in the debt service
funds.
NOTE 15 - DEFERRED CHARGES IN PROPRIETARY FUNDS
As of December 31, 2007, the Waterworks Utility Fund had deferred charges and other assets in
the amount of $638,432 for debt issue costs on the 2002-2004 Revenue Bonds. This amount will
be fully amortized by 2022. The Golf Course Fund amount was $35,615 for the 1999 Refunded
Bond debt issue costs and discount. This amount will be fully amortized by 2016.
NOTE 16. SEGMENT INFORMATION
An identifiable activity (or grouping of activities) required to be accounted for separately, which
(a) is reported as or within an enterprise fund; (b) for which one or more revenue bonds are
outstanding; and, (c) where the revenue stream is pledged for payment of, are required to
disclose segment information. The City of Renton has no required segment information to
disclose for 2007.
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 notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-57
2007 Comprehensive Annual Financial Report City of Renton, Washington
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, 2007, on Valley Comm:
Valley Comm Renton Interest
Assets $23,102,085 22.34%*
Liabilities 748,003
TOTAL Equity $22,354,082 $4,144,207
*After removing $3,642,531 in assets not subject to the equity interest
calculations.
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
On January 4, 2008 the City of Renton issued Water & Sewer Bonds, Series 2008A & 2008B in
the amount of $12,010,000. The 2008B were issued as taxable bonds in the amount of
$2,035,000. These funds will be used for construction purposes in the Waterworks Fund.
The Benson Hill Community was annexed into the City of Renton effective March 1, 2008. This
annexation added approximately 16,000 new residents and was incorporated into the final 2008
Budget Document.
The City of Renton uses both FAS and MBIA to insure certain Revenue Bonds. As a result the
City of Renton reported a material event relating to the downgrading of various Bond Insurers.
The following table shows the ratings as of April 7, 2008 on the two Bond Insurers the city uses.
Insurer
Mood 's
S&P
Fitch
FSA
2/26/08 Aaa
3/17/08 AAA
1/24/08 AAA
MBIA
2/26/08 Aaa
2/25/08 AAA
4/4/08 AA
On April 7, 2008 the City of Renton passed Ordinance 3938 stating the intend of the City of
Renton to build a Facilities Maintenance Shop with General Obligation Bonds issued in 2008 to
a maximum of $12.5 million.
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-58
2007 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - GENERAL FUND
For the Year Ended December 31, 2007
Required Supplemental Information, 5-1
ACTUAL
BUDGET TO GAAP
BUDGETED
AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Taxes
$
57,614,993
$ 59,623,105 $
60,853,487
$ 1,230,382
Licenses and permits
3,739,698
3,739,698
4,051,338
311,640
Intergovernmental revenues
3,465,249
3,465,249
4,247,212
781,963
Charges for services
4,483,299
4,489,699
4,644,129
154,430
Fines and forfeits
2,552,933
1,003,600
2,904,411
1,900,811
Interfund revenues
911,400
2,552,933
1,150,079
(1,402,854)
Contributions
117,400
70,300
303,582
233,282
Interest
874,800
873,000
1,142,279
269,279
Miscellaneous revenues
139,300
139,300
84,822
(54,478)
TOTAL REVENUES
$
73,899,072
$ 75,956,884 $
79,381,339
$ 3,424,455
EXPENDITURES
Current:
General government
$
14,468,993
$ 14,578,235 $
14,327,626
$ (250,609)
Security of persons and property
34,654,693
35,177,695
35,583,500
405,805
Physical environment
2,844,310
2,857,810
2,764,563
(93,247)
Transportation
5,572,195
5,572,195
5,508,218
(63,977)
Economic environment
5,817,690
5,933,824
5,536,661
(397,163)
Mental & physical health
10,600
10,600
13,818
3,218
Culture & recreation
8,808,617
10,960,462
10,701,870
(258,592)
Capital outlay
2,196,343
2,597,313
2,401,021
(196,292)
Debt service:
Interest payment
4,582
4,582
TOTAL EXPENDITURES
$
74,373,441
$ 77,688,134 $
76,841,859
$ (846,275)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$ (474,369)
$ (1,731,250) $
2,539,480
$ 4,270,730
OTHER FINANCING SOURCES (USES)
Transfer in
$
86,500
$ 262,660 $
480,355
$ 217,695
Transfer (out)
(346,500)
(424,656)
(480,355)
55,699
Sale of capital assets
24,218
24,218
TOTAL OTHER FINANCE SOURCES (USES)
$ (260,000)
$ (161,996) $
24,218
$ 186,214
NET CHANGE IN FUND BALANCE
$ (734,369)
$ (1,893,246) $
$ 4,456,944
2,563,698
FUND BALANCE JANUARY 1
$
734,369
$ 1,893,246 $
13,918,686
$ 12,025,440
FUND BALANCES JANUARY 1 RESTATED
$
734,369
$ 1,893,246 $
13,918,686
$ 12,025,440
FUND BALANCE DECEMBER 31
$
$ $
16,482,384
$ 16,482,384
Required Supplemental Information, 5-1
2007 Comprehensive Annual Financial Report
ACTUARIAL VALUATION OF FIREFIGHTERS' PENSION FUND
EMPLOYER CONTRIBUTIONS
December 31, 2007
City of Renton, Washington
* 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.
** The ARC is documented as 0 for negative amounts prior to 2004.
Required Supplemental Information, 5-2
ANNUAL
FIRE
TOTAL
REQUIRED
PERCENTAGE
EMPLOYER
INSURANCE
EMPLOYER
CONTRIBUTION
OFARC
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
(25,285)
85,062
59,777
(109,968)
N/A
* 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.
** The ARC is documented as 0 for negative amounts prior to 2004.
Required Supplemental Information, 5-2
2007 Comprehensive Annual Financial Report City of Renton, Washington
Non -Major Special Revenue Funds
ARTERIAL STREET FUND
The Arterial Street Fund was established pursuant to state law allocating the one-half cent
State Gasoline Tax revenue to cities and towns for construction, improvements, and
major repair of streets.
HOTEL/MOTEL TAX FUND
Accounts for monies collected through an increase of 1% in hotel/motel taxes for the
purpose of increasing tourism in the City of Renton.
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.
SPRINGBROOK WETLANDS BANK FUND
The City of Renton established this fund in 2007 for the purpose of providing accounting
for the Springbrook Creek Wetland and Habitat Mitigation Bank project. The fund will
receive revenue by selling Wetlands Credits to third parties and to the City's internal
departments.
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.
Combining Statements & Schedules, 6-1
2007 Comprehensive Annual Financial Report City of Renton, Washington
Debt Service Funds
1997 LIMITED GENERAL OBLIGATION BOND REDEMPTION FUND
Accounts for debt service on a Council -approved bond issue, which provided funding for
the purchase of Renton City Hall (2001 GO Refund Bonds).
1978 LIMITED GENERAL OBLIGATION BOND REDEMPTION FUND
Accounts for debt service on a Council -approved bond issue, which provided partial
funding for construction of the Renton Senior Activity Center (1997 GO Refunding
Bonds).
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.
Combining Statements & Schedules, 6-2
2007 Comprehensive Annual Financial Report City of Renton, Washington
Capital Project Funds
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.
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.
TRANSPORTATION CAPITAL IMPROVEMENT FUND
This fund supports the City of Renton transportation projects and projects linked with various
State and Federal funding programs. Many of the projects depend on grants, LIDS, and
mitigation revenue.
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.
Combining Statements & Schedules, 6-3
2007 Comprehensive Annual Financial Report City of Renton, Washington
Non -Major 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.
Combining Statements & Schedules, 6-4
2007 Comprehensive Annual Financial Report
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2007
Page 1 of 5
City of Renton, Washington
Combining Statements & Schedules, 6-5
SPECIAL REVENUE FUNDS
ARTERIAL
LEASED CITY
HOTEL/
SPRINGBROOK
ASSETS
STREET
PROPERTIES
MOTELTAX
WETLANDS
Cash & cash equivalents
$
166,067
$
518,103
$ 212,601
$
Investments
150,714
-
100,000
Receivables (net of allowances):
Customer accounts
-
946,530
-
Accrued interest & penalty
3,522
-
-
Due from other funds
-
-
448,000
Due from other governmental units
156,024
-
35,416
-
TOTAL ASSETS
$
476,327
$
1,464,633
$ 348,017
$ 448,000
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
$
-
$
8,742
$ -
$
Taxes payable
261,148
Retainage payable
1,739
Deposits
32,981
Accrued employee wages and leave payable
4,089
Total liabilities
$
$
308,699
$
$ -
Fund balances
Unreserved, designated for:
Special revenue funds
476,327
1,155,934
348,017
448,000
Total fund balances
$
476,327
$
1,155,934
$ 348,017
$ 448,000
TOTAL LIABILITIES AND FUND BALANCES
$
476,327
$
1,464,633
$ 348,017
$ 448,000
Combining Statements & Schedules, 6-5
2007 Comprehensive Annual Financial Report
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2007
Page 2of5
SPECIAL REVENUE FUNDS
City of Renton, Washington
PATHS & 1% FOR CABLE COMM. TOTAL
ASSETS TRAILS ART & DEVELOPMENT SRF
Cash & cash equivalents $ 3,182 $ 121,357 $ 75,757 $ 1,097
Investments - - - 25C
Receivables (net of allowances):
Customer accounts
1,500
948,030
Accrued interest & penalty
-
3,522
Due from other funds
448,000
Due from other governmental units
-
-
-
191,440
TOTAL ASSETS
$
3,182
$ 121,357
$ 77,257
$ 2,938,773
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
$
-
$ -
$ 13,478
$ 22,220
Taxes payable
-
261,148
Retainage payable
1,739
Deposits
32,981
Accrued employee wages and leave payable
-
4,089
Total liabilities
$
-
$ -
$ 13,478
$ 322,177
Fund balances
Unreserved, designated for:
Special revenue funds
3,182
121,357
63,779
2,616,596
Total fund balances
$
3,182
$ 121,357
$ 63,779
$ 2,616,596
TOTAL LIABILITIES AND FUND BALANCES
$
3,182
$ 121,357
$ 77,257
$ 2,938,773
Combining Statements & Schedules, 6-6
2007 Comprehensive Annual Financial Report
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2007
Page 3 of 5
City of Renton, Washington
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Deferred revenue
Total liabilities
Fund balances
Unreserved. Designated for:
Debt service funds
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
$ 8,350 $ 1,212 $ 9,562
- 3,435 3,435
$ 8,350 $ 4,647 $ 12,997
$ 779,354 $ 613,561 $ 1,392,915
$ 779,354 $ 613,561 $ 1,392,915
$ 787,704 $ 618,208 $ 1,405,912
Combining Statements & Schedules, 6-7
DEBT SERVICE FUNDS
GENERAL
1989 UGO BOND
TOTAL
ASSETS
DEBT
REDEMPTION
DSF
Cash & cash equivalents
$ 88,638
$ 451,589 $
540,227
Investments
500,000
150,714
650,714
Receivables (net of allowances):
Taxes
180,940
12,283
193,223
Accrued interest & penalty
18,126
3,522
21,648
Due from other governmental units
-
100
100
TOTAL ASSETS
$ 787,704
$ 618,208 $
1,405,912
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Deferred revenue
Total liabilities
Fund balances
Unreserved. Designated for:
Debt service funds
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
$ 8,350 $ 1,212 $ 9,562
- 3,435 3,435
$ 8,350 $ 4,647 $ 12,997
$ 779,354 $ 613,561 $ 1,392,915
$ 779,354 $ 613,561 $ 1,392,915
$ 787,704 $ 618,208 $ 1,405,912
Combining Statements & Schedules, 6-7
2007 Comprehensive Annual Financial Report
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2007
Page 4 of 5
City of Renton, Washington
Combining Statements & Schedules, 6-8
C.D. IMPACT
FIRE IMPACT
TRANS. IMPACT
TOTAL
ASSETS
MITIGATION
MITIGATION
MITIGATION
CPF
Cash & cash equivalents
$
725,546
$ 856,018
$ 1,231,568
$ 2,813,132
Investments
752,379
1,500,000
3,458,638
5,711,017
Receivables (net of allowances):
Accrued interest & penalty
20,262
28,275
66,767
115,304
TOTAL ASSETS
$
1,498,187
$ 2,384,293
$ 4,756,973
$ 8,639,453
LIABILITIES AND FUND BALANCES
Liabilities
Retainage payable
$
-
$ 40,004
$ -
$ 40,004
Total liabilities
$
$ 40,004
$
$ 40,004
Fund balances
Unreserved, designated for:
Capital projects funds
$
1,498,187
$ 2,344,289
$ 4,756,973
$ 8,599,449
Total fund balances
$
1,498,187
$ 2,344,289
$ 4,756,973
$ 8,599,449
TOTAL LIABILITIES AND FUND BALANCES
$
1,498,187
$ 2,384,293
$ 4,756,973
$ 8,639,453
Combining Statements & Schedules, 6-8
2007 Comprehensive Annual Financial Report
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2007
Page 5 of 5
ASSETS
Cash & cash equivalents
Investments
Receivables (net of allowances):
Taxes
Customer accounts
Accrued interest & penalty
Due from other funds
Due from other governmental units
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Taxes payable
Retainage payable
Deposits
Deferred revenue
Accrued employee wages and leave payable
Total liabilities
Fund balances
Special revenue funds
Debt service funds
Capital projects funds
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
City of Renton, Washington
Combining Statements & Schedules, 6-9
TOTAL OTHER
TOTAL
TOTAL
TOTAL
GOVERNMENTAL
SRF
DSF
CPF
FUNDS
$ 1,097,067
$ 540,227
$ 2,813,132
$ 4,450,426
250,714
650,714
5,711,017
6,612,445
-
193,223
193,223
948,030
948,030
3,522
21,648
115,304
140,474
448,000
-
448,000
191,440
100
-
191,540
$ 2,938,773
$ 1,405,912
$ 8,639,453
$ 12,984,138
$ 22,220
$ 9,562
$ -
$ 31,782
261,148
-
261,148
1,739
40,004
41,743
32,981
-
32,981
-
3,435
3,435
4,089
-
4,089
$ 322,177
$ 12,997
$ 40,004
$ 375,178
$ 2,616,596
$ -
$ -
$ 2,616,596
-
1,392,915
-
1,392,915
8,599,449
8,599,449
$ 2,616,596
$ 1,392,915
$ 8,599,449
$ 12,608,960
$ 2,938,773
$ 1,405,912
$ 8,639,453
$ 12,984,138
Combining Statements & Schedules, 6-9
2007 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
Combining Statements & Schedules, 6-10
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2007
Page 1 of 5
SPECIAL REVENUE
FUNDS
ARTERIAL
LEASED CITY
HOTEU
SPRINGBROOK
STREET
PROPERTIES
MOTELTAX
WETLANDS
REVENUES
Taxes
$
-
$
$ 243,251
$
Intergovernmental revenues
538,634
-
Charges for services
-
956,911
-
Interfund revenues
-
-
448,000
Contributions
-
-
50,000
-
Interest
24,849
27,422
13,792
Miscellaneous revenues
-
-
-
-
TOTAL REVENUES
$
563,483
$ 984,333
$ 307,043
$ 448,000
EXPENDITURES
Current:
General government
$
-
$ 269,729
$ -
$ -
Economic environment
-
284,430
Culture & recreation
-
-
Capital outlay
116,842
Debt service:
Interest payment
(300)
-
TOTAL EXPENDITURES
$
-
$ 386,271
$ 284,430
$ -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
563,483
$ 598,062
$ 22,613
$ 448,000
OTHER FINANCING SOURCES (USES)
Transfer in
$
-
$ 406,988
$ -
$ -
Transfer (out)
(565,000)
(406,988)
TOTAL OTHER FINANCE SOURCES (USES)
$
(565,000)
$ -
$
$ -
NET CHANGE IN FUND BALANCE
$
$ 598,062
$ 22,613
$ 448,000
(1,517)
FUND BALANCE JANUARY 1
$
477,844
$ 557,872
$ 325,404
$ -
FUND BALANCE DECEMBER 31
$
476,327
$ 1,155,934
$ 348,017
$ 448,000
Combining Statements & Schedules, 6-10
2007 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2007
Page 2 of 5
Combining Statements & Schedules, 6-11
SPECIAL REVENUE FUNDS
PATHS &
1% FOR
CABLE COMM.
TOTAL
TRAILS
ART
& DEVELOPMENT
SRF
REVENUES
Taxes
$
$
$
$ 243,251
Intergovernmental revenues
538,634
Charges for services
956,911
Interfund revenues
448,000
Contributions
50,000
Interest
155
3,411
5,621
75,250
Miscellaneous revenues
-
1,500
1,500
TOTAL REVENUES
$
155
$ 3,411
$ 7,121
$ 2,313,546
EXPENDITURES
Current:
General government
$
-
$ -
$ -
$ 269,729
Economic environment
-
284,430
Culture & recreation
-
128,354
128,354
Capital outlay
20,367
-
137,209
Debt service:
Interest payment
-
-
(300)
TOTAL EXPENDITURES
$
$ 20,367
$ 128,354
$ 819,422
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
155
$ (16,956)
$ (121,233)
$ 1,494,124
OTHER FINANCING SOURCES (USES)
Transfer in
$
-
$ 60,000
$
$ 466,988
Transfer (out)
(971,988)
TOTAL OTHER FINANCE SOURCES (USES)
$
-
$ 60,000
$
$ (505,000)
NET CHANGE IN FUND BALANCE
$
$ 43,044
$ (121,233)
$ 989,124
155
FUND BALANCE JANUARY 1
$
3,027
$ 78,313
$ 185,012
$ 1,627,472
FUND BALANCE DECEMBER 31
$
3,182
$ 121,357
$ 63,779
$ 2,616,596
Combining Statements & Schedules, 6-11
2007 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
OTHER
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2007
Page 3 of 5
DEBT SERVICE
FUNDS
GENERAL 1989 UGO BOND
TOTAL
DEBT REDEMPTION
DSF
REVENUES
Taxes
$ 2,240,921 $
518,590
$ 2,759,511
Interest
138,736
23,208
161,944
TOTAL REVENUES
$ 2,379,657 $
541,798
$ 2,921,455
EXPENDITURES
Debt service:
Debt service:
$ 1,110,904 $
455,000
$ 1,565,904
Interest payment
2,551,950
63,853
2,615,803
TOTAL EXPENDITURES
$ 3,662,854 $
518,853
$ 4,181,707
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$ (1,283,197) $
22,945
$ (1,260,252)
OTHER FINANCING SOURCES (USES)
Transferin
$ 1,898,688 $
-
$ 1,898,688
Transfer (out)
(2,314,108)
(2,314,108)
TOTAL OTHER FINANCE SOURCES (USES)
$ (415,420) $
-
$ (415,420)
NET CHANGE IN FUND BALANCE
$ (1,698,617) $
$ (1,675,672)
22,945
FUND BALANCE JANUARY 1
$ 2,477,971 $
590,616
$ 3,068,587
FUND BALANCE JANUARY 1 RESTATED
$ 2,477,971 $
590,616
$ 3,068,587
FUND BALANCE DECEMBER 31
$ 779,354 $
613,561
$ 1,392,915
Combining Statements & Schedules, 6-12
2007 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2007
Page 4 of 5
Combining Statements & Schedules, 6-13
CAPITAL PROJECT FUNDS
C.D. IMPACT
FIRE IMPACT
TRANS. IMPACT
TOTAL
MITIGATION
MITIGATION
MITIGATION
CPF
REVENUES
Charges for services
$
531,328
$ 1,386,955
$ 1,348,109
$
3,266,392
Interest
71,455
93,481
269,993
434,929
TOTAL REVENUES
$
602,783
$ 1,480,436
$ 1,618,102
$
3,701,321
TOTAL EXPENDITURES
$
-
$ -
$ -
$
-
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
602,783
$ 1,480,436
$ 1,618,102
$
3,701,321
OTHER FINANCING SOURCES (USES)
Transfer (out)
$
-
$ (300,000)
$ (500,000)
$
(800,000)
TOTAL OTHER FINANCE SOURCES (USES)
$
$ (300,000)
$ (500,000)
$ (800,000)
NET CHANGE IN FUND BALANCE
$
$ 1,180,436
$ 1,118,102
$
602,783
2,901,321
FUND BALANCE JANUARY 1
$
895,404
$ 1,163,853
$ 3,638,871
$
5,698,128
FUND BALANCE DECEMBER 31
$
1,498,187
$ 2,344,289
$ 4,756,973
$
8,599,449
Combining Statements & Schedules, 6-13
2007 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2007
Page 5of5
Combining Statements & Schedules, 6-14
TOTAL OTHER
TOTAL
TOTAL
TOTAL
GOVERNMENTAL
SRF
DSF
CPF
FUNDS
REVENUES
Taxes
$
243,251
$ 2,759,511
$
$ 3,002,762
Intergovernmental revenues
538,634
-
538,634
Charges for services
956,911
3,266,392
4,223,303
Interfund revenues
448,000
-
448,000
Contributions
50,000
-
-
50,000
Interest
75,250
161,944
434,929
672,123
Miscellaneous revenues
1,500
-
-
1,500
TOTAL REVENUES
$
2,313,546
$ 2,921,455
$ 3,701,321
$ 8,936,322
EXPENDITURES
Current:
General government
$
269,729
$
$
$ 269,729
Economic environment
284,430
284,430
Culture & recreation
128,354
128,354
Capital outlay
137,209
137,209
Debt service:
Principal payment
1,565,904
1,565,904
Interest payment
(300)
2,615,803
2,615,503
TOTAL EXPENDITURES
$
819,422
$ 4,181,707
$
$ 5,001,129
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
1,494,124
$ (1,260,252)
$ 3,701,321
$ 3,935,193
OTHER FINANCING SOURCES (USES)
Transfer in
$
466,988
$ 1,898,688
$ -
$ 2,365,676
Transfer (out)
(971,988)
(2,314,108)
(800,000)
(4,086,096)
TOTAL OTHER FINANCE SOURCES (USES)
$
(505,000)
$ (415,420)
$ (800,000)
$ (1,720,420)
NET CHANGE IN FUND BALANCE
$
$ 2,901,321
$ 2,214,773
989,124
$ (1,675,672)
FUND BALANCE JANUARY 1
$
1,627,472
$ 3,068,587
$ 5,698,128
$ 10,394,187
FUND BALANCE DECEMBER 31
$
2,616,596
$ 1,392,915
$ 8,599,449
$ 12,608,960
Combining Statements & Schedules, 6-14
2007 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - ARTERIAL STREET FUND
For the Year Ended December 31, 2007
Combining Statements & Schedules, 6-15
ACTUAL
BUDGET TO GAAP
BUDGETED
AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Intergovernmental revenues
$
562,500
$ 562,500
$ 538,634
$ (23,866)
Interest
2,500
2,500
24,849
22,349
TOTAL REVENUES
$
565,000
$ 565,000
$ 563,483
$ (1,517)
TOTAL EXPENDITURES
$
-
$
$ -
$
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
565,000
$ 565,000
$ 563,483
$ (1,517)
OTHER FINANCING SOURCES (USES)
Transfer (out)
$ (565,000)
$ (565,000)
$ (565,000)
$
TOTAL OTHER FINANCE SOURCES (USES)
$ (565,000)
$ (565,000)
$ (565,000)
$
NET CHANGE IN FUND BALANCE
$
$
$ (1,517)
$ (1,517)
FUND BALANCE JANUARY 1
$
$
$ 477,844
$ 477,844
FUND BALANCE DECEMBER 31
$
$
$ 476,327
$ 476,327
Combining Statements & Schedules, 6-15
2006 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - LEASED CITY PROPERTIES
For the Year Ended December 31, 2007
ACTUAL BUDGET TO GAAP
BUDGETED AMOUNTS BUDGETARY DIFFERENCES
ORIGINAL FINAL BASIS OVER (UNDER)
REVENUES
Charges for services $ 960,899 $ 960,899 $ 956,911 $ (3,988)
Interest - - 27,422 27,422
TOTAL REVENUES $ 960,899 $ 960,899 $ 984,333 $ 23,434
EXPENDITURES
Current:
General government
Capital outlay
Debt service:
Principal payment
Interest payment
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in
Transfer (out)
TOTAL OTHER FINANCE SOURCES (USES)
$ 576,321
$ 1,123,731 $
269,729 $
(854,002)
-
116,956
116,842
(114)
120,000
120,000
-
(120,000)
7,200
7,200
(300)
(7,500)
$ 703,521
$ 1,367,887 $
386,271 $
(981,616)
$ 257,378
$ (406,988) $
1,005,050
598,062 $
$ -
$ 406,988 $
406,988 $
-
(406,988)
(406,988)
NET CHANGE IN FUND BALANCE
$
257,378 $ (406,988) $
598,062 $
1,005,050
FUND BALANCE JANUARY 1
$
- $ 406,988 $
557,872 $
150,884
FUND BALANCE DECEMBER 31
$
257,378 $ - $
1,155,934 $
1,155,934
Combining Statements & Schedules, 6-16
2007 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - HOTEUMOTEL TAX FUND
For the Year Ended December 31, 2007
Combining Statements & Schedules, 6-17
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Taxes
$
180,000
$ 220,000
$ 243,251
$ 23,251
Contributions
65,000
65,000
50,000
(15,000)
Interest
10,000
10,000
13,792
3,792
TOTAL REVENUES
$
255,000
$ 295,000
$ 307,043
$ 12,043
EXPENDITURES
Current:
Economic environment
$
255,000
$ 295,000
$ 284,430
$ (10,570)
TOTAL EXPENDITURES
$
255,000
$ 295,000
$ 284,430
$ (10,570)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
-
$
$ 22,613
$ 22,613
TOTAL OTHER FINANCE SOURCES (USES)
$
$ -
$ -
$ -
NET CHANGE IN FUND BALANCE
$
$
$ 22,613
$ 22,613
FUND BALANCE JANUARY 1
$
$
$ 325,404
$ 325,404
FUND BALANCE DECEMBER 31
$
$
$ 348,017
$ 348,017
Combining Statements & Schedules, 6-17
2007 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - PATHS AND TRAILS FUND
For the Year Ended December 31, 2007
Combining Statements & Schedules, 6-18
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL FINAL
BASIS
OVER (UNDER)
REVENUES
Interfund revenues
-
-
Interest
$
$
$
155
$ 155
TOTALREVENUES
$
$
$
155
$ 155
TOTAL EXPENDITURES
$
$
$
$ -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
$
$
155
$ 155
TOTAL OTHER FINANCE SOURCES (USES)
$
$
$
$ -
NET CHANGE IN FUND BALANCE
$
$
$ 155
$
155
FUND BALANCE JANUARY 1
$
$
$
3,027
$ 3,027
FUND BALANCE DECEMBER 31
$
$
$
3,182
$ 3,182
Combining Statements & Schedules, 6-18
2007 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - SPRINGBROOK WETLANDS BANK FUND
For the Year Ended December 31, 2007
REVENUES
Interfund revenues
TOTALREVENUES
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
$
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
FUND BALANCE JANUARY 1
BUDGETARY
DIFFERENCES
ORIGINAL FINAL
- $ -
BASIS
OVER (UNDER)
$ $
$
448,000
$ 448,000
$ $
$
448,000
$ 448,000
$
$ 448,000
$ $
448,000
NET CHANGE IN FUND BALANCE
$
$
$
448,000 $ 448,000
FUND BALANCE JANUARY 1
$
$
$
- $ -
FUND BALANCE DECEMBER 31
$
$
$
448,000 $ 448,000
Combining Statements & Schedules, 6-19
2007 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - 1 % FOR ART FUND
For the Year Ended December 31, 2007
Combining Statements & Schedules, 6-20
ACTUAL
BUDGET TO GAAP
BUDGETED
AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Interest
$
-
$ -
$ 3,411
$ 3,411
TOTAL REVENUES
$
$
$ 3,411
$ 3,411
EXPENDITURES
Current:
Capital outlay
$
60,000
$ 84,560
$ 20,367
$ (64,193)
Debt service:
TOTAL EXPENDITURES
$
60,000
$ 84,560
$ 20,367
$ (64,193)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$ (60,000)
$ (84,560)
$ (16,956)
$ 67,604
OTHER FINANCING SOURCES (USES)
Transfer in
$
60,000
$ 60,000
$ 60,000
$ -
TOTAL OTHER FINANCE SOURCES (USES)
$
60,000
$ 60,000
$ 60,000
$ -
NET CHANGE IN FUND BALANCE
$
$ (24,560)
$ 43,044
$ 67,604
FUND BALANCE JANUARY 1
24,560
78,313
53,753
FUND BALANCE DECEMBER 31
$
-
$ -
$ 121,357
$ 121,357
Combining Statements & Schedules, 6-20
2007 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - CABLE COMMUNICATIONS DEVELOPMENT FUND
For the Year Ended December 31, 2007
Combining Statements & Schedules, 6-21
ACTUAL
BUDGET TO GAAP
BUDGETED
AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Taxes
$
35,000
$ 35,000
$ -
$ (35,000)
Interest
2,400
2,400
5,621
3,221
Miscellaneous revenues
1,500
1,500
1,500
-
TOTAL REVENUES
$
38,900
$ 38,900
$ 7,121
$ (31,779)
EXPENDITURES
Current:
Culture & recreation
$
78,900
$ 177,048
$ 128,354
$ (48,694)
Debt service:
TOTAL EXPENDITURES
$
78,900
$ 177,048
$ 128,354
$ (48,694)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$ (40,000)
$ (138,148)
$ (121,233)
$ 16,915
TOTAL OTHER FINANCE SOURCES (USES)
$
-
$ -
$ -
$ -
NET CHANGE IN FUND BALANCE
$ (40,000)
$ (138,148)
$ (121,233)
$ 16,915
FUND BALANCE JANUARY 1
$
40,000
$ 138,148
$ 185,012
$ 46,864
FUND BALANCE DECEMBER 31
$
-
$ -
$ 63,779
$ 63,779
Combining Statements & Schedules, 6-21
2007 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - GENERAL GOVERNMENTAL MISCELLANEOUS DEBT SERVICE FUND
For the Year Ended December 31, 2007
ACTUAL BUDGET TO GAAP
BUDGETED AMOUNTS BUDGETARY DIFFERENCES
ORIGINAL FINAL BASIS OVER (UNDER)
REVENUES
Taxes $ 2,440,820 $ 2,440,820 $ 2,240,921 $ (199,899)
Interest 24,400 24,400 138,736 114,336
TOTAL REVENUES $ 2,465,220 $ 2,465,220 $ 2,379,657 $ (85,563)
EXPENDITURES
Debt service:
Principal payment
Interest payment
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in
Transfer (out)
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
Prior Period Adjustment
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
$ 1,111,900 $ 1,111,900 $ 1,110,904 $ (996)
2,645,100 2,645,100 2,551,950 (93,150)
$ 3,757,000 $ 3,757,000 $ 3,662,854 $ (94,146)
$ (1,291,780) $ (1,291,780) $ (1,283,197) $ 8,583
$ 1,898,045
$ 1,898,688
$ 1,898,688 $
(2,313,465)
(2,314,108)
(2,314,108)
$ (415,420)
$ (415,420)
$ (415,420) $
-
$ (1,707,200)
$ (1,707,200)
$ (1,698,617) $
8,583
$ 1,707,200
$ 1,707,200
$ 2,477,971 $
770,771
$ 1,707,200
$ 1,707,200
$ 2,477,971 $
770,771
$ -
$ -
$ 779,354 $
779,354
Combining Statements & Schedules, 6-22
2007 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - 1989 UNLIMITED GENERAL OBLIGATION BOND REDEMPTION FUND
(Coulon Park)
For the Year Ended December 31, 2007
ACTUAL BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY DIFFERENCES
ORIGINAL FINAL
BASIS OVER (UNDER)
REVENUES
Taxes $ 516,000 $ 516,000 $
518,590 $ 2,590
Interest 5,000 5,000
23,208 18,208
TOTAL REVENUES $ 521,000 $ 521,000 $
541,798 $ 20798
EXPENDITURES
Current:
Debt service:
Principal payment
Interest payment
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
TOTAL OTHER FINANCE SOURCES (USES)
$ 455,000 $ 455,000 $ 455,000 $
66,000 66,000 63,853 (2,147)
$ 521,000 $ 521,000 $ 518,853 $ (2,147)
$ - $ $ 22,945 $ 22,945
NET CHANGE IN FUND BALANCE $ $ $ 22,945 $ 22,945
FUND BALANCE JANUARY 1 590,616 590,616
FUND BALANCE DECEMBER 31 $ $ $ 613,561 $ 61371
Combining Statements & Schedules, 6-23
2007 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - MUNICIPAL FACILITIES CAPITAL IMPROVEMENT FUND
For the Year Ended December 31, 2007
Combining Statements & Schedules, 6-24
ACTUAL
BUDGET TO GAAP
BUDGETED
AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Taxes
$
900,000
$ 900,000
$ 2,352,213
$ 1,452,213
Intergovernmental revenues
-
-
67,754
67,754
Interest
100,000
100,000
685,333
585,333
TOTAL REVENUES
$
1,000,000
$ 1,000,000
$ 3,105,300
$ 2,105,300
EXPENDITURES
Current:
Economic environment
$
50,000
$ 83,000
$ 75,498
$ (7,502)
Capital outlay
5,000,497
6,907,848
3,838,264
(3,069,584)
TOTAL EXPENDITURES
$
5,050,497
$ 6,990,848
$ 3,913,762
$ (3,077,086)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$ (4,050,497)
$ (5,990,848)
$ (808,462)
$ 5,182,386
OTHER FINANCING SOURCES (USES)
Transfer in
$
3,232,000
$ 2,583,335
$ 1,871,957
$ (711,378)
Transfer (out)
(179,660)
(179,660)
TOTAL OTHER FINANCE SOURCES (USES)
$
3,232,000
$ 2,583,335
$ 1,692,297
$ (531,718)
NET CHANGE IN FUND BALANCE
$ (818,497)
$ (3,407,513)
$ 883,835
$ 4,650,668
FUND BALANCE JANUARY 1
$
818,497
$ 3,407,513
$ 15,651,655
$ 12,244,142
FUND BALANCE DECEMBER 31
$
-
$ -
$ 16,535,490
$ 16,894,810
Combining Statements & Schedules, 6-24
2007 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - GENERAL GOVERNMENT CAPITAL IMPROVEMENT FUND
For the Year Ended December 31, 2007
Combining Statements & Schedules, 6-25
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Licenses and permits
$
1,600,000
$ 1,800,000
$ 1,776,892
$ (23,108)
Intergovernmental revenues
12,788,500
23,317,715
2,779,780
(20,537,935)
Charges for services
-
-
55
55
Special assessments
51,723
51,723
Interest
-
(37,379)
(37,379)
TOTAL REVENUES
$
14,388,500
$ 25,117,715
$ 4,571,071
$ (20,546,644)
EXPENDITURES
Current:
Capital outlay
$
23,042,100
$ 33,468,300
$ 9,685,824
$ (23,782,476)
TOTAL EXPENDITURES
$
23,042,100
$ 33,468,300
$ 9,685,824
$ (23,782,476)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
(8,653,600)
$ (8,350,585)
$ (5,114,753)
$ 3,235,832
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt
$
-
$ 50,000
$ -
$ (50,000)
Transfer in
3,600,600
4,065,000
1,065,000
(3,000,000)
Transfer (out)
(60,000)
(60,000)
(60,000)
TOTAL OTHER FINANCE SOURCES (USES)
$
3,540,600
$ 4,055,000
$ 1,005,000
$ (3,050,000)
NET CHANGE IN FUND BALANCE
$
(5,113,000)
$ (4,295,585)
$ (4,109,753)
$ 185,832
FUND BALANCE JANUARY 1
$
5,113,000
$ 4,295,585
$ 8,465,556
$ 4,169,971
FUND BALANCE DECEMBER 31
$
-
$ -
$ 4,355,803
$ 4,355,803
Combining Statements & Schedules, 6-25
2007 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - SOUTH LAKE WASHINGTON INFRASTRUCTURE
For the Year Ended December 31, 2007
EXPENDITURES
Current:
Physical environment
Transportation
Economic environment
Capital outlay
Debt service:
Interest payment
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer (out)
TOTAL OTHER FINANCE SOURCES (USES)
$ 800,000 $ 1,045,299 $ - $ (1,045,299)
- 30,000 895,140 865,140
175,647 203,000 - (203,000)
11,553,700 14,808,430 13,257,705 (1,550,725)
- - 26,538 26,538
$ 12,529,347 $ 16,086,729 $ 14,179,383 $ (1,907,346)
$ (9,636,947) $ (8,161,509) $ (10,325,471) $ (2,163,962)
$ (784,580) $ (784,580) $ (784,580) $
$ (784,580) $ (784,580) $ (784,580) $
NET CHANGE IN FUND BALANCE
$ (10,421,527)
$ (8,946,089)
ACTUAL
BUDGET TO GAAP
FUND BALANCE JANUARY 1
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
$ 2,705,617
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Taxes
$ $
1,717,621
$ 490,414
$ (1,227,207)
Licenses and permits
268,000
-
(268,000)
Intergovernmental revenues
2,054,300
4,961,447
2,158,450
(2,802,997)
Charges for services
838,100
978,152
1,181,392
203,240
Interest
-
-
23,656
23,656
TOTAL REVENUES
$ 2,892,400 $
7,925,220
$ 3,853,912
$ (4,071,308)
EXPENDITURES
Current:
Physical environment
Transportation
Economic environment
Capital outlay
Debt service:
Interest payment
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer (out)
TOTAL OTHER FINANCE SOURCES (USES)
$ 800,000 $ 1,045,299 $ - $ (1,045,299)
- 30,000 895,140 865,140
175,647 203,000 - (203,000)
11,553,700 14,808,430 13,257,705 (1,550,725)
- - 26,538 26,538
$ 12,529,347 $ 16,086,729 $ 14,179,383 $ (1,907,346)
$ (9,636,947) $ (8,161,509) $ (10,325,471) $ (2,163,962)
$ (784,580) $ (784,580) $ (784,580) $
$ (784,580) $ (784,580) $ (784,580) $
NET CHANGE IN FUND BALANCE
$ (10,421,527)
$ (8,946,089)
$ (11,110,051)
$ (2,163,962)
FUND BALANCE JANUARY 1
$ 10,421,527
$ 8,946,089
$ 11,651,706
$ 2,705,617
FUND BALANCE DECEMBER 31
$ -
$ -
$ 541,655
$ 541,655
Combining Statements & Schedules, 6-26
2007 Comprehensive Annual Financial Report City of Renton, Washington
COMBINING STATEMENT OF NET ASSETS
NON -MAJOR ENTERPRISE FUNDS
December 31, 2007
Page 1 of 2
Combining Statements & Schedules, 6-27
TOTAL
NON -MAJOR
AIRPORT
GOLF COURSE
ENTERPRISE FUNDS
ASSETS
Current assets:
Cash & cash equivalents
$
773,787
$
629,994
$ 1,403,781
Investments at fair value
500,000
308,643
808,643
Receivables (net of allowances):
Customer accounts
2,223
56,723
58,946
Interest - investments
6,445
13,895
20,340
Due from other governmental units
17,053
-
17,053
Inventory of materials and supplies
-
92,068
92,068
Total current assets
$
1,299,508
$
1,101,323
$ 2,400,831
Restricted assets:
Investments at fair value
$
$
441,358
$ 441,358
Total restricted assets
$
$
441,358
$ 441,358
Notes receivable - non-current
Special Assessments, deferred
Capital assets (net)
$
10,087,018
$
9,330,675
$ 19,417,693
Deferred charges and other assets
-
35,615
35,615
TOTAL ASSETS
$
11,386,526
$
10,908,971
$ 22,295,497
Combining Statements & Schedules, 6-27
2007 Comprehensive Annual Financial Report City of Renton, Washington
COMBINING STATEMENT OF NET ASSETS
NON -MAJOR ENTERPRISE FUNDS
December 31, 2007
Page 2 of 2
Combining Statements & Schedules, 6-28
TOTAL
NON -MAJOR
AIRPORT
GOLF COURSE
ENTERPRISE FUNDS
LIABILITIES
Current liabilities:
Accounts payable
$
25,260
$ 49,284
$ 74,544
Accrued interest payable
11,902
11,902
Accrued employee benefits payable
1,811
5,383
7,194
Accrued taxes payable
23,515
12,720
36,235
Custodial Accounts
-
125,137
125,137
Deferred revenue
32,535
32,535
Operating leases payable
-
9,192
9,192
Total current liabilities
$
83,121
$ 213,618
$ 296,739
Liabilities payable from restricted assets:
Revenue bonds payable - current
$
$ 295,000
$ 295,000
Total liabilities payable from restricted assets
$
$ 295,000
$ 295,000
Long-term liabilities:
Revenue bonds payable
$
$ 2,510,000
$ 2,510,000
Unamortized discounts on revenue bonds
(242,500)
(242,500)
Accrued employee wages and benefits payable
39,571
81,001
120,572
Operating leases payable
66,881
66,881
Total long-term liabilities
$
39,571
$ 2,415,382
$ 2,454,953
TOTAL LIABILITIES
$
122,692
$ 2,924,000
$ 3,046,692
NET ASSETS
Investment in capital assets,
net of related debt
$
10,087,018
$ 6,701,294
$ 16,788,312
Restricted
441,358
441,358
Unrestricted
1,176,816
842,319
2,019,135
TOTAL NET ASSETS
$
11,263,834
$ 7,984,971
$ 19,248,805
Combining Statements & Schedules, 6-28
2007 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
NON - MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2007
OPERATING REVENUES:
Charges for services
TOTAL OPERATING REVENUES
OPERATING EXPENSES:
Operations and maintenance
Benefit payments
Professional services
Administrative and general
Insurance
Taxes
Depreciation
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES(EXPENSES)
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
TOTAL
NON -MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
$ 965,998 $ 2,264,101 $ 3,230,099
$ 965,998 $ 2,264,101 $ 3,230,099
$ 561,133 $
1,193,514 $
1,754,647
114,750
275,608
390,358
57,937
-
57,937
201,281
290,711
491,992
51,000
-
51,000
143
10,851
10,994
409,810
313,868
723,678
$ 1,396,054 $
2,084,552 $
3,480,606
$ (430,056) $
179,549 $
(250,507)
Intergovernmental revenues
$ 65,986 $
- $
65,986
Interest revenues
74,707
69,854
144,561
Gain (loss) on sale of capital assets
-
(324)
(324)
Other non-operating revenues(expenses)
2,312
923
3,235
Interest expense
-
(158,138)
(158,138)
Amortization of debt discount and expense
-
(34,764)
(34,764)
NON-OPERATING REVENUE NET OF EXPENSES
$ 143,005 $
(122,449) $
20,556
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS
$ (287,051) $
57,100 $
(229,951)
CHANGE IN NET ASSETS
$ (287,051) $
57,100 $
(229,951)
NET ASSETS, JANUARY 1
$ 11,550,885 $
7,927,871 $
19,478,756
NET ASSETS, DECEMBER 31
$ 11,263,834 $
7,984,971 $
19,248,805
Combining Statements & Schedules, 6-29
2007 Comprehensive Annual Financial Report
City of Renton, Washington
STATEMENT OF CASH FLOWS
NON -MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2007
Page 1 of 2
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services
Cash paid to suppliers for goods & services
Cash paid to other funds for goods & services
Cash paid to employees
Other non-operating receipts
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets
Capital grants
Principal payments on debt
Interest payments on debt
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for investments
Interest on investments
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
TOTAL
NON -MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
$ 953,339 $
2,275,428 $
3,228,767
(908,185)
(1,472,077)
(2,380,262)
(2,734)
(5,666)
(8,400)
(110,942)
(276,336)
(387,278)
2,312
(157,539)
(155,227)
(510,286)
CASH & CASH EQUIVALENTS, JANUARY 1
$ (66,210) $
363,810 $
297,600
GASH, HES I HIL; I EU GASH ,& GASH LUUIVALEN 16,
$ (541,209) $
(124,513) $
(665,722)
65,986
$ 773,787 $
65,986
1,403,781
(295,000)
(295,000)
8,872
8,872
$ (475,223) $ (410,641) $ (885,864)
$ (58,643) $ (58,643)
75,558 $ 61,063 136,621
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES
$ 75,558 $
2,420 $
77,978
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS
$ (465,875) $
(44,411) $
(510,286)
CASH & CASH EQUIVALENTS, JANUARY 1
$ 1,239,662 $
674,405 $
1,914,067
GASH, HES I HIL; I EU GASH ,& GASH LUUIVALEN 16,
DECEMBER 31
$ 773,787 $
629,994 $
1,403,781
Combining Statements & Schedules, 6-30
2007 Comprehensive Annual Financial Report
City of Renton, Washington
STATEMENT OF CASH FLOWS
NON -MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2007
Page 2 of 2
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization of
deferred charges
Other non-operating revenue
(Increase) decrease in
accounts receivable
(Increase) decrease in due from
other funds/governmental units
(Increase) decrease in inventory
& prepaid items
Increase (decrease) in vouchers
retainage payable
Increase (decrease) in due tc
other funds/governmental units
Increase (decrease) in payables
& other short-term liabilities
Increase (decrease) in
customer deposits
Increase (decrease) in
deferred revenues
Increase (decrease) in accrued
employee leave benefits
Total adjustments
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
TOTAL
NON -MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
$ (430,056) $ 179,549 $ (250,507)
$ 409,810 $
313,868 $
723,678
2,312
(157,539)
(155,227)
8,616
(22,033)
(13,417)
19,987
13,299
33,286
-
(45,131)
(45,131)
(35,409)
(7,943)
(43,352)
(2,734)
(5,666)
(8,400)
(15,998)
76,780
60,782
19,354
19,354
(26,546)
-
(26,546)
3,808
(728)
3,080
$ 363,846 $
184,261 $
548,107
$ (66,210) $
363,810 $
297,600
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Depreciation $
Net amort. bond prem. discount & bond issue costs
409,810 $ 313,868 $ 723,678
35,244
Combining Statements & Schedules, 6-31
2007 Comprehensive Annual Financial Report
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2007
Page 1 of 2
City of Renton, Washington
Combining Statements & Schedules, 6-32
TOTAL
EQUIPMENT
INSURANCE
INTERNAL
RENTAL
FUND
SERVICE FUNDS
ASSETS
Current assets:
Cash & cash equivalents
$
3,087,611
$ 3,292,042
$ 6,379,653
Investments at fair value
3,503,828
11,224,178
14,728,006
Receivables (net of allowances):
Customer accounts
1,893
30,970
32,863
Interest - investments
70,701
274,103
344,804
Due from other funds
-
18,060
18,060
Due from other governmental units
12,330
-
12,330
Prepayments
128,402
247,424
375,826
Total current assets
$
6,804,765
$ 15,086,777
$ 21,891,542
Property, plant, and equipment:
Capital assets (net)
$
7,674,602
$ -
$ 7,674,602
Total property, plant, and equipment
$
7,674,602
$ -
$ 7,674,602
TOTAL ASSETS
$
14,479,367
$ 15,086,777
$ 29,566,144
Combining Statements & Schedules, 6-32
2007 Comprehensive Annual Financial Report City of Renton, Washington
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2007
Page 2 of 2
Combining Statements & Schedules, 6-33
TOTAL
EQUIPMENT
INSURANCE
INTERNAL
RENTAL
FUND
SERVICE FUNDS
LIABILITIES
Current liabilities:
Accounts payable
$
555,821 $
743,935 $
1,299,756
Due to other funds
-
18,060
18,060
Accrued employee benefits payable
2,940
10,306
13,246
Accrued taxes payable
4,335
4,335
Total current liabilities
$
563,096 $
772,301 $
1,335,397
Long-term liabilities:
Revenue bonds payable
-
Unamortized discounts on revenue bonds
Accrued employee wages and benefits payable
$
161,347 $
417,600 $
578,947
Claims incurred but not reported
-
2,985,955
2,985,955
Total long-term liabilities
$
161,347 $
3,403,555 $
3,564,902
TOTAL LIABILITIES
$
724,443 $
4,175,856 $
4,900,299
NET ASSETS
Investment in capital assets,
Net of related debt
$
7,674,602 $
$
7,674,602
Unrestricted
6,080,322
10,910,921
16,991,243
TOTAL NET ASSETS
$
13,754,924 $
10,910,921 $
24,665,845
Combining Statements & Schedules, 6-33
2007 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2007
Combining Statements & Schedules, 6-34
TOTAL
EQUIPMENT
INSURANCE
INTERNAL
RENTAL
FUND
SERVICE FUNDS
OPERATING REVENUES:
Charges for services
$
7,257,190 $
2,497,956 $
9,755,146
Other operating revenues
6,074
9,574,948
9,581,022
TOTAL OPERATING REVENUES
$
7,263,264 $
12,072,904 $
19,336,168
OPERATING EXPENSES:
Operations and maintenance
$
1,085,791 $
168,250 $
1,254,041
Benefit payments
1,471,099
9,231,082
10,702,181
Professional services
314,818
265,619
580,437
Administrative and general
1,494,796
48,502
1,543,298
Insurance
246,500
1,658,016
1,904,516
Depreciation
2,061,628
-
2,061,628
Capital outlay
106,303
-
106,303
TOTAL OPERATING EXPENSES
$
6,780,935 $
11,371,469 $
18,152,404
OPERATING INCOME (LOSS)
$
482,329 $
701,435 $
1,183,764
NON-OPERATING REVENUES (EXPENSES):
Intergovernmental revenues
$
2,998 $
- $
2,998
Interest revenues
320,989
657,638
978,627
Gain (loss) on sale of capital assets
(100,032)
-
(100,032)
Other non-operating revenues (expenses;
3,651
688,953
692,604
NON-OPERATING REVENUE NET OF EXPENSE
$
227,606 $
1,346,591 $
1,574,197
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS
$
709,935 $
2,048,026 $
2,757,961
CHANGE IN NET ASSETS
$
709,935 $
2,048,026 $
2,757,961
NET ASSETS, JANUARY 1
$
10,510,965 $
8,862,895 $
19,373,860
Prior year adjustments
2,534,024
-
2,534,024
NET ASSETS, DECEMBER 31
$
13,754,924 $
10,910,921 $
24,665,845
Combining Statements & Schedules, 6-34
2007 Comprehensive Annual Financial Report
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2007
Page 1 of 2
City of Renton, Washington
Combining Statements & Schedules, 6-35
TOTAL
EQUIPMENT
INSURANCE
INTERNAL
RENTAL
FUND
SERVICE FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services
$
7,274,941 $
12,058,883 $
19,333,824
Cash paid to suppliers for goods & services
(2,221,546)
(146,147)
(2,367,693)
Cash paid to employees
(1,524,552)
(8,856,596)
(10,381,148)
Other operating receipts
(806,316)
(1,359,073)
(2,165,389)
Other non-operating receipts
(106,303)
(106,303)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
$
2,616,224 $
1,697,067 $
4,313,291
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets
$
(1,882,053) $
$
(1,882,053)
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES
$
(1,882,053) $
$
(1,882,053)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for investments
$
(650,000) $
(4,530,277) $
(5,180,277)
Interest on investments
313,986
543,135
857,121
Interest on investments
Interest on investments
$
(336,014) $
(3,987,1421$
(4,323,156)
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS
$
398,157 $
(2,290,075) $
(1,891,918)
CASH & CASH EQUIVALENTS, JANUARY 1
$
2,689,454 $
5,582,117 $
8,271,571
CASH & CASH EQUIVALENTS, DECEMBER 31
$
3,087,611 $
3,292,042 $
6,379,653
Combining Statements & Schedules, 6-35
2007 Comprehensive Annual Financial Report City of Renton, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2007
Page 2 of 2
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization of
deferred charges
Other non-operating revenue
(Increase) decrease in
accounts receivable
(Increase) decrease in due from
other funds/governmental units
(Increase) decrease in inventory
& prepaid items
Increase (decrease) in vouchers
retainage payable
Increase (decrease) in payables
& other short-term liabilities
Increase(decrease)in accrued
employee leave benefits
Total adjustments
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Increase in fair value of investments
Depreciation & amortization
TOTAL
EQUIPMENT INSURANCE INTERNAL
RENTAL FUND SERVICE FUNDS
$ 482,329 $
701,435 $
1,183,764
2,061,628
-
2,061,628
(96,381)
688,954
592,573
11,677
(14,021)
(2,344)
(12,330)
1,876
(10,454)
(25,358)
(244,430)
(269,788)
219,035
(47,807)
171,228
3,719
(7,855)
(4,136)
(28,095)
618,915
590,820
$ 2,133,895 $
995,632 $
3,129,527
$ 2,616,224 $
1,697,067 $
4,313,291
3,828
13,901
17,729
2,061,628
-
2,061,628
Combining Statements & Schedules, 6-36
2007 Comprehensive Annual Financial Report City of Renton, Washington
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND - SPECIAL DEPOSIT
For the Year Ended December 31, 2007
Page 1 of 1
Combining Statements & Schedules, 6-37
BEGINNING
ENDING
BALANCE
DEBITS
CREDITS
BALANCE
ASSETS
Cash
$
471,522
$
595,218
338,691
$
728,049
TOTAL ASSETS
$
471,522
$
595,218
$ 338,691
$
728,049
LIABILITIES
Vouchers & contacts payable
$
80,380
$
338,391
320,177
$
62,166
Deposits payable
391,142
400,857
675,598
665,883
TOTAL LIABILITIES
$
471,522
$
739,248
$ 995,775
$
728,049
Combining Statements & Schedules, 6-37
2007 Comprehensive Annual Financial Report
This page is intentionally left blank.
City of Renton, Washington
Combining Statements Section, 6-38
2007 Comprehensive Annual Financial Report City of Renton, Washington
STATISTICAL SECTION
December 31, 2007
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.
Statistical Section, 7-1
2007 Comprehensive Annual Financial Report
This page is intentionally left blank.
City of Renton, Washington
Statistical Section, 7-2
2007 Comprehensive Annual Financial Report
TABLE 1
NET ASSETS BY COMPONENT
LAST FIVE FISCAL YEARS
(Accrual basis of accounting)
FISCAL YEAR
City of Renton, Washington
2031_ 2004 2005 2006 2007
Governmental activities
$ 248,246,810
$ 359,173,601
$ 375,125,039
$ 391,480,495
$ 421,232,714
Invested in capital assets, net of related debt
$ 89,360,313
$ 195,282,055
$ 203,297,293
$ 209,964,556
$ 232,714,563
Restricted
6,816,559
21,460,395
28,578,305
42,748,022
32,648,993
Unrestricted
41,699,232
25,746,196
29,272,573
29,340,290
32,075,613
Total governmental activities net assets
$ 137,876,104
$ 242,488,646
$ 261,148,171
$ 282,052,868
$ 297,439,169
Business -type activities
$ 248,246,810
$ 359,173,601
$ 375,125,039
$ 391,480,495
$ 421,232,714
Invested in capital assets, net of related debt
$ 158,886,497
$ 163,891,546
$ 171,827,746
$ 181,515,939
$ 188,518,151
Restricted
3,048,210
3,555,690
3,555,690
25,097,253
3,586,667
Unrestricted
15,886,887
21,612,156
21,541,563
19,357,695
17,973,237
Total business -type activities net assets
$ 177,821,594
$ 189,059,392
$ 196,924,999
$ 225,970,887
$ 210,078,055
Primary government
Invested in capital assets, net of related debt
$ 248,246,810
$ 359,173,601
$ 375,125,039
$ 391,480,495
$ 421,232,714
Restricted
9,864,769
25,016,085
32,133,995
67,845,275
36,235,660
Unrestricted
57,586,119
47,358,352
50,814,136
48,697,985
50,048,850
Total primary government net assets
$ 315,697,698
$ 431,548,038
$ 458,073,170
$ 508,023,755
$ 507,517,224
'First Year of Net Assets by Component
Source : City of Renton, Finance & IS Deparrtment
Statistical Section, 7-3
2007 Comprehensive Annual Financial Report
EXPENSES
Government activities:
General government
Judicial
Security of persons and property
Physical environment
Transportation
Economic development
Mental and physical health
Culture and recreation
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Water
Airport
Solid Waste
Golf
Total business -type activities net assets
Total primary government expenses
PROGRAM REVENUES
Government activities:
Charges for services:
General government charges
Judicial
Security of persons and property
Physical environment
Transportation
Economic environment
Culture and recreation
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Business -type charges
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
Net (expense)/revenue
Governmental activities
Business -type activities
Total primary government net expense
TABLE 2
CHANGES IN NET ASSETS
LAST FIVE FISCAL YEARS
(Accrual basis of accounting)
Page 1 of 2
FISCAL YEAR
City of Renton, Washington
20031 2004 2005 2006 2007
$
24,365,244
$
22,144,567
$
21,137,856
$
19,977,086
$
29,112,970
929,780
1,258,956
247,235
1,340,655
591,586
1,380,816
837,027
1,434,134
400,798
1,845,031
1,519,383
26,238,548
1,660,698
28,647,443
1,432,215
29,496,791
4,236,596
30,749,762
4,368,399
36,213,120
1,460,879
2,013,239
1,558,458
2,278,445
1,649,960
2,208,340
6,213,791
2,618,832
4,596,836
2,749,417
1,094,764
4,221,713
1,227,503
6,797,356
4,940,471
4,183,880
33,768,669 $
15,798,138
41,847,229
11,237,287
5,886,795
5,519,929
5,899,796
6,372,118
6,880,687
21,646
228,966
300,171
295,072
301,495
8,689,666
10,303,074
9,744,692
9,695,924
11,036,931
1,827,464
1,627,581
1,710,346
1,772,370
2,594,784
$
74,523,271
$
78,888,016
$
76,062,688
$
88,713,436
$
101,971,722
$
22,381,464
$
23,347,678
$
25,884,227
27,220,132
28,657,468
1,219,465
936,305
1,226,810
1,196,363
1,396,054
8,516,598
8,558,441
9,327,525
9,706,016
10,606,560
1,831,670
1,933,113
2,132,077
2,056,874
2,277,454
$
33,949,197
$
34,775,537
$
38,570,639
$
40,179,385
$
42,937,536
$
108,472,468
$
113,663,553
$
114,633,327
$
128,892,821
$
144,909,258
$ 16,716,472 $
15,579,366 $
17,525,244 $
21,852,465
$ 23,163,645
1,287,901
1,531,773
697,883
831,485
1,169,581
929,780
200,149
247,235
517,151
591,586
759,700
837,027
894,750
400,798
999,484
1,519,383
1,916,862
1,660,698
1,628,154
1,432,215
4,969,475
4,236,596
4,516,899
4,368,399
7,857,186
1,460,879
1,507,387
1,558,458
1,742,071
1,649,960
3,732,443
6,213,791
4,979,601
4,596,836
5,265,737
1,094,764
1,745,718
1,227,503
5,909,870
4,940,471
$ 32,470,797 $
33,768,669 $
33,308,271 $
41,847,229
$ 47,069,865
$ 37,077,258 $
38,917,114 $
40,029,830 $
40,056,079
$ 45,403,349
222,193
112,616
196,974
77,688
243,537
6,600,471
6,583,241
5,101,699
6,317,203
1,761,802
$ 43,899,922 $
45,612,971 $
45,328,503 $
46,450,970
$ 47,408,688
$ 76,370,719 $
79,381,640 $
78,636,774 $
88,298,199
$ 94,478,553
$ (42,052,474) $ (45,119,347) $ (42,754,417) $ (46,866,207) $ (54,901,857)
9,950,725 10,837,434 6,757,864 6,271,585 4,471,152
$ (32,101,749) $ (34,281,913) $ (35,996,553) $ (40,594,622) $ (50,430,705)
Statistical Section, 7-4
2007 Comprehensive Annual Financial Report
GENERAL REVENUES AND OTHER CHANGES
IN NET ASSETS
Governmental activities:
Taxes
Property taxes
Sales taxes
Business taxes
Othertaxes
Penalties and interest
Investment earnings
Miscellaneous
Transfers
Total governmental activities
Business -type activities:
Investment earnings
Miscellaneous
Transfers
Total business -type activities
Total primary government
CHANGES IN NET ASSETS
Governmental activities
Business -type activities
Total primary government
'First Year of Changes in Net Assets
Source: City of Renton, Finance & IS Department
City of Renton, Washington
TABLE 2
CHANGES IN NET ASSETS
LAST FIVE FISCAL YEARS
(Accrual basis of accounting)
Page 2 of 2
FISCAL YEAR
2003' 2004 2005 2006 2007
$ 19,520,575 $
19,578,390 $
21,523,818
$
23,600,131
$ 23,106,578
17,334,831
18,281,949
18,910,823
$
20,869,595
22,749,831
10,895,130
9,957,129
10,643,068
$
11,219,303
11,962,879
5,449,877
6,751,264
6,938,265
$
7,718,945
8,236,876
5,415
6,048
49
$
3,799
33,949
1,081,398
1,291,669
1,449,001
$
3,251,975
3,465,517
312,867
4,346,619
1,958,217
$
689,243
1,218,889
(40,000)
(10,304)
(9,300)
(68,446)
-
$ 54,560,093 $
60,202,764 $
61,413,941
$
67,284,545
$ 70,774,519
242,055
270,605
458,797
881,486
1,041,576
369,513
119,455
639,646
282,808
135,986
40,000
10,304
9,300
68,446
-
$ 651,568 $
400,364 $
1,107,743 $
1,232,740
$ 1,177,562
$ 55,211,661 $
60,603,128 $
62,521,684 $
68,517,285
$ 71,952,081
$ 12,507,619 $ 15,083,417 $ 18,659,524 $ 20,418,338 $ 15,872,662
10,602,293 11,237,798 7,865,607 7,504,325 5,648,714
$ 23,109,912 $ 26,321,215 $ 26,525,131 $ 27,922,663 $ 21,521,376
Statistical Section, 7-5
2007 Comprehensive Annual Financial Report
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
TABLE 3
FUND BALANCE OF GOVERNMENT FUNDS
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Page 1 of 2
General fund
General
998 1999 2000 2001 2002 2003 2004 2005 2006 200
City of Renton, Washington
All other governmental funds
Reserved
$ -
$ -
FISCAL YEAR
$ 920,000
$ 1,260,000
Unreserved, reported in:
1998
1999
2000
2001
2002
General fund
9,037,183
2,890,947
3,898,265
4,938,021
3,361,529
Reserved
$ 87,000
$ 83,000
$ 311,673
$ 318,053
$ 83,000
Unreserved
4,555,713
5,381,222
8,025,332
6,428,315
3,920,136
Total general fund
$ 4,642,713
$ 5,464,222
$ 8,337,005
$ 6,746,368
$ 4,003,136
All other governmental funds
Reserved
$ -
$ -
$ -
$ 920,000
$ 1,260,000
Unreserved, reported in:
Special revenue funds
9,037,183
2,890,947
3,898,265
4,938,021
3,361,529
Debt service funds
2,325,340
2,987,015
2,653,495
2,546,129
2,030,335
Capital project funds
18,663,675
21,682,591
23,570,741
29,133,681
33,742,638
Total all other governmental funds
$ 30,026,198
$ 27,560,553
$ 30,122,501
$ 37,537,831
$ 40,394,502
Source : City of Renton, Finance & IS Department
Statistical Section, 7-6
2007 Comprehensive Annual Financial Report
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
TABLE 3
FUND BALANCE OF GOVERNMENT FUNDS
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Page 2 of 2
All other governmental funds
—0—All other governmental funds
City of Renton, Washington
1998 1999 2000 2001 2002 2003 2004 2005 2006 200
All other governmental funds
Reserved
$ 880,000
$ 500,000
FISCAL YEAR
$ 63,900
$ 975,000
Unreserved, reported in:
2003
2004
2005
2006
2007
General fund
3,985,917
3,238,246
2,929,692
4,243,189
2,616,596
Reserved
$ 83,000
$ 108,742
$ 8,000
$ 8,000
$ 8,000
Unreserved
6,758,364
8,603,003
9,189,871
10,737,097
16,474,384
Total general fund
$ 6,841,364
$ 8,711,745
$ 9,197,871
$ 10,745,097
$ 16,482,384
All other governmental funds
Reserved
$ 880,000
$ 500,000
$ 240,000
$ 63,900
$ 975,000
Unreserved, reported in:
Special revenue funds
3,985,917
3,238,246
2,929,692
4,243,189
2,616,596
Debt service funds
1,916,243
1,486,894
2,752,445
3,068,587
1,392,915
Capital project funds
22,628,512
26,202,437
27,890,457
42,152,437
29,057,397
Total all other governmental funds
$ 29,410,672
$ 31,427,577
$ 33,812,594
$ 49,528,113
$ 34,041,908
Statistical Section, 7-7
2007 Comprehensive Annual Financial Report
City of Renton, Washington
TABLE 4
CHANGES IN FUND BALANCES OF GOVERNMENT FUNDS
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Page 1 of 2
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines
Interfund revenues
Special assessments
Contributions
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Security of persons and property
Physical environment
Transportation
Economic and physical development
Mental and physical health
Culture and recreation
Capital outlay
Debt service
Principal
Interest
Total expenditures
Excess of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Other financing sources (uses)
Proceeds of long-term debt
Interfund loan proceeds
Interfund loan repayments
Funds remitted to bond trustee
Capital leases
Sale of capital assets
Total other financing
sources (uses)
Net change in fund balances
Debt service as a percentage of noncapital
expenditures
Source : City of Renton, Finance & IS Department
FISCAL YEAR
1998 1999 2 O 2001 2002
$ 41,722,051 $ 44,397,793 $ 47,827,013 $ 50,218,530 $ 49,901,849
4,146,167
3,780,303
4,562,892
4,065,518
4,229,501
9,078,690
5,637,817
6,793,084
6,129,103
6,212,359
7,785,760
7,157,860
7,805,409
7,301,538
7,777,778
722,054
831,327
937,689
993,093
1,043,199
516,929
689,931
352,648
333,056
312,908
1,974,897
91,383
64,092
191,877
118,103
2,626,519
2,129,455
2,307,978
2,583,931
1,073,538
555,701
682,625
727,465
1,231,574
1,198,846
$ 69,128,768
$ 65,398,494
$ 71,378,270
$ 73,048,220 $
71,868,081
$ 9,915,676 $ 10,058,875 $ 10,858,538 $
20,074,074
21,300,403
22,889,748
1,730,735
1,892,541
1,769,642
10,985,484
10, 706, 833
10, 330, 362
4,060,970
3,814,967
4,337,239
10,962
8,486
8,599
5,804,099
6,166,358
6,606,662
13,712,159
11,002,950
7,450,837
11,193,462 $ 12,523,577
23,569,864
24,924,380
1,878,956
1,898,665
13,885,329
10, 622, 373
4,484,526
4,479,582
6,756
11,445
7,263,056
7,382,069
5,359,801
10,532,479
2,032,436 2,707,994 2,481,026 2,086,447 1,849,269
1,381,069 1,345,588 1,205,281 882,748 1,382,717
$ 69,707,664 $ 69,004,995 $ 67,937,934 $ 70,610,945 $ 75,606,556
$ (578,896) $ (3,606,501) $ 3,440,336 $ 2,437,275 $ (3,738,475)
$ 6,244,003 $ 4,670,101 $ 3,694,498 $ 6,850,944 $ 9,441,451
(7,413,375) (4,587,778) (3,662,809) (8,873,294) (10,009,962)
38,990 - 6,023,484 3,879,038
448,000 823,000 363,800 860,000
(448,000) (823,000) (363,800) (860,000)
362,890
563,283
1,403,688
61,685
104,825
$ (806,482)
$ 684,596 $
1,435,377 $
4,062,819
$ 3,415,352
$ (1,385,378)
$ (2,921,905) $
4,875,713 $
6,500,094
$ (323,123)
6.10% 6.99% 6.09% 4.55% 4.97%
Statistical Section, 7-8
2007 Comprehensive Annual Financial Report City of Renton, Washington
TABLE 4
CHANGES IN FUND BALANCES OF GOVERNMENT FUNDS
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Page 2 of 2
Excess of revenues
over (under) expenditures $ (7,630,191) $ 1,987,607 $ 2,373,896 $ (498,302) $ (9,773,136)
OTHER FINANCING SOURCES (USES)
Transfers in $ 3,511,700 $ 6,563,978 $ 5,476,360 $ 2,962,895 $ 5,782,988
Transfers out (3,551,700) (7,764,278) (5,443,660) (3,705,341) (5,782,988)
Other financing sources (uses)
Proceeds of long-term debt 18,490,029
Interfund loan proceeds
Interfund loan repayments
Funds remitted to bond trustee
C 't I I
api a eases
-
-
-
FISCAL YEAR
Sale of capital assets
171,249
117,328
464,547
13,464
2003
Total other financing
2004
2005
2006
2007
REVENUES
$ 131,249
$ (1,082,972) $
497,247
$ 17,761,047
$ 24,218
Net change in fund balances
$ (7,498,942)
$ 904,635 $
Taxes
$
53,722,322
$
55,344,506
$58,794,081
$64,005,567
$
66,698,876
Licenses and permits
5.01%
4,226,883
5.05%
4,329,086
4,686,608
4,962,507
5,828,230
Intergovernmental
4,533,544
7,570,570
5,687,169
9,769,225
9,791,830
Charges for services
6,016,704
6,593,153
5,563,289
6,543,289
10,048,879
Fines
1,055,564
1,008,984
731,286
906,685
1,150,079
Interfund revenues
3,482,110
3,638,574
3,796,042
2,843,147
3,352,411
Special assessments
295,673
20,852
23,340
511,932
51,723
Contributions
255,102
249,938
317,600
214,387
353,582
Interest
1,081,420
1,059,886
1,060,353
2,570,682
2,486,889
Miscellaneous
40,314
122,799
569,881
223,908
86,322
Total revenues
$
74,709,636
$
79,938,348
$ 81,229,649
$ 92,551,329
$
99,848,821
EXPENDITURES
General government
$
13,283,955
$
13,660,095
$ 14,382,634
$ 13,972,592
$
14,597,355
Security of persons and property
26,029,354
27,462,613
29,031,626
31,157,303
35,583,500
Physical environment
2,015,562
2,201,777
2,190,228
2,609,452
2,764,563
Transportation
4,461,387
4,615,345
4,711,924
5,097,449
6,403,358
Economic and physical development
4,613,587
4,947,080
5,123,024
5,519,219
5,896,589
Mental and physical health
10,368
11,723
12,700
9,231
13,818
Culture and recreation
7,585,936
8,563,967
8,876,250
9,933,854
10,830,224
Capital outlay
21,089,534
13,246,669
11,438,104
21,117,525
29,320,023
Debt service
Principal
1,417,042
1,477,579
1,375,738
1,503,350
1,565,904
Interest
1,833,102
1,763,893
1,713,525
2,129,656
2,646,623
Total expenditures
$
82,339,827
$
77,950,741
$ 78,855,753
$ 93,049,631
$
109,621,957
Excess of revenues
over (under) expenditures $ (7,630,191) $ 1,987,607 $ 2,373,896 $ (498,302) $ (9,773,136)
OTHER FINANCING SOURCES (USES)
Transfers in $ 3,511,700 $ 6,563,978 $ 5,476,360 $ 2,962,895 $ 5,782,988
Transfers out (3,551,700) (7,764,278) (5,443,660) (3,705,341) (5,782,988)
Other financing sources (uses)
Proceeds of long-term debt 18,490,029
Interfund loan proceeds
Interfund loan repayments
Funds remitted to bond trustee
C 't I I
api a eases
-
-
-
Sale of capital assets
171,249
117,328
464,547
13,464
24,218
Total other financing
sources (uses)
$ 131,249
$ (1,082,972) $
497,247
$ 17,761,047
$ 24,218
Net change in fund balances
$ (7,498,942)
$ 904,635 $
2,871,143
$ 17,262,745
$ (9,748,918)
Debt service as a percentage of noncapital
expenditures
5.31%
5.01%
4.58%
5.05%
5.25%
Statistical Section, 7-9
2007 Comprehensive Annual Financial Report
$70
$60
$50
$40
$30
U)
o $20
$10
$0
TABLE 5
GENERAL GOVERNMENT TAX REVENUE BY SOURCE
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
TAX REVENUES BY SOURCE
1998-2007
City of Renton, Washington
O Penalty/Delinquent
■ Excise
O Business
E3 Sales and Use
■ Property
Source: City of Renton, Finance & IS Department
Statistical Section, 7-10
1998 1999
2000 2001
2002 2003 2004
2005 2006
2007
PENALTY/
ADMISSION /
INTEREST
FISCAL
PROPERTY
SALES
UTILITY
EXCISE
DELINQUENT
YEAR
TAX
TAX
TAX
TAX
TAX
TOTAL
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
2007
23,106,578
22,749,831
11,962,879
8,236,876
33,949
66,090,113
Source: City of Renton, Finance & IS Department
Statistical Section, 7-10
2007 Comprehensive Annual Financial Report
TABLE 6
PRINCIPAL PROPERTY TAX PAYERS
December 31, 2007
City of Renton, Washington
Source: 'King County Department of Assessments
Statistical Section, 7-11
2007
1998
% OF TOTAL
% OF TOTAL
TAXABLE'
TAXABLE
TAXABLE
TAXABLE
ASSESSED
ASSESSED
ASSESSED
ASSESSED
TAXPAYER
VALUE
RANK
VALUE
VALUE
RANK
VALUE
Boeing
662,337,233
1
6.86%
761,498,607
1
17.88%
Paccar
107,406,425
2
1.11%
99,854,551
2
2.34%
Puget Sound Energy-Elec/Gas
91,398,221
3
0.95%
87,316,949
3
2.05%
Providence Health
67,475,400
4
0.70%
AMB Property Corp.
57,481,800
5
0.60%
Axis Grand Holdings:
41,591,000
6
0.43%
(formerly HSC Real Estate Inc.)
ECI Two WTC LLC (WTCTPI LLC)
35,184,500
7
0.36%
30,407,479
6
0.71%
BRE Properties
34,819,469
8
0.36%
Fred Meyer Stores Inc.
32,553,158
9
0.34%
Qwest Corporation
32,461,207
10
0.34%
University Street Properties
45,485,400
4
1.07%
Renton Building 1-7
43,782,400
5
1.03%
Renton Village Assoc.
17,781,100
7
0.42%
Bay Apartment Communities
17,500,000
8
0.41%
Fred Meyer Stores Inc.
15,858,400
9
0.37%
Rosche One Int
14,152,000
10
0.33%
All Others
8,496,969,241
87.96%
3,124,863,864
73.38%
Total Assessed Valuation
$ 9,659,677,654
100.00%
$ 4,258,500,750
100.00%
Source: 'King County Department of Assessments
Statistical Section, 7-11
2007 Comprehensive Annual Financial Report
10,000
w 9,000
c
0 8,000
E 7,000
3 6,000
R
5,000
(D
H 4,000
m
Q 3,000
2,000
1,000
TABLE 7
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Page 1 of 2
Total Taxable Assessed Value
1 ■Taxable Assessed Value
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Year
FISCAL
YEAR
ENDED
DECEMBER 31
REAL PROPERTY'
RESIDENTIAL COMMERCIAL
PROPERTY PROPERTY
City of Renton, Washington
PERSONAL PROPERTY
OTHER
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
2007
4,201,702,500
3,853,709,290
754,326,325
12000 is the first year when breakdown is available. Source is from TaxTools 4.1 Tax Database
2,4 Source is from King County Department of Assessments
3The tax exempt real property value is not available for the last ten years
Statistical Section, 7-12
2007 Comprehensive Annual Financial Report
4.500
4.000
3.500
3.000
y 2.500
W 2.000
1.500
1.000
0.500
City of Renton, Washington
TABLE 7
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Page 2 of 2
Direct Tax Rate
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Year
FISCAL
TOTAL
YEAR
PERSONAL PROPERTY
TOTAL
DIRECT
ENDED
TAX EXEMPT
ASSESSED
TAX
DECEMBER 31
REAL PROPERTY 3
VALUE
RATE 4
1998
N/A
$
3,825,109,334
3.896
1999
N/A
$
4,258,500,750
3.747
2000
N/A
$
6,041,877,559
3.684
2001
N/A
$
5,062,663,512
3.375
2002
N/A
$
5,593,880,488
3.354
2003
N/A
$
5,983,854,306
3.277
2004
N/A
$
6,372,653,882
3.327
2005
N/A
$
6,697,771,907
3.227
2006
N/A
$
7,786,802,282
3.116
2007
N/A
$
8,809,738,115
2.884
Statistical Section, 7-13
2006 Comprehensive Annual Financial Report
4.00000
3.50000
3.00000
2.50000
d
2.00000
1.50000
1.00000
0.50000
TABLE 8
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Page 1 of 2
Direct Property Tax Rates
ti ti ti ti ti ti ti ti
Year
City of Renton, Washington
Source: King County Codes and Levies
Special Districts include Emergency Medical Services, Port and Hospital districts
Statistical Section, 7-14
DIRECT RATES
OVERLAPPING RATES
CITY
OF RENTON
COUNTY
Debt
Total
Debt
Total
Fiscal
Operating
Service
City
Operating
Service
County
Year
Millage
Millage
Millage
Millage
Millage
Millage
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
2007
2.82148
0.06252
2.88400
1.08814
0.20142
1.28956
Source: King County Codes and Levies
Special Districts include Emergency Medical Services, Port and Hospital districts
Statistical Section, 7-14
2006 Comprehensive Annual Financial Report
7.00000
6.00000
5.00000
4.00000
3.00000
2.00000
1.00000
City of Renton, Washington
TABLE 8
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Page 2 of 2
Overlapping Property Tax Rates
^
Year
Statistical Section, 7-15
OVERLAPPING RATES
SCHOOL DISTRICT
Total
Debt
Total
Total
Direct &
Fiscal
Special
Operating
Service
School
Overlapping
Overlapping
Year
Districts '
Millage
Millage
Millage
Rates
Rates
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
2007
0.99431
1.40073
2.04586
3.44659
5.73046
8.61446
Statistical Section, 7-15
2007 Comprehensive Annual Financial Report
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
City of Renton, Washington
TABLE 9
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Page 1 of 2
Levies vs Collections
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
FISCAL
YEAR
TOTAL TAX
COLLECTED WITHIN THE 1
ENDED
LEVY FOR
FISCAL YEAR OF THE LEVY
DECEMBER 31
FISCAL YEAR
AMOUNT % OF LEVY
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%
2007
24,049,060
23,585,143
98.1%
Sources:
' Annual Tax Receivable Summary
2 2007 Annual Property Tax Reports from King County
Statistical Section, 7-16
2007 Comprehensive Annual Financial Report
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
TABLE 9
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Page 2 of 2
Property tax collections
0 Collections within fiscal yr
f Collections in subsequent years
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
FISCAL
YEAR
COLLECTIONS 2
ENDED
IN SUBSEQUENT
TOTAL COLLECTIONS TO DATE
DECEMBER 31
YEARS
AMOUNT
% OF LEVY
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
367,051
22,706,349
99.6%
2007
23, 585,143
98.1%
City of Renton, Washington
Statistical Section, 7-17
2007 Comprehensive Annual Financial Report
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
FUNCTION
TABLE 10
SALES TAX COLLECTIONS BY SECTOR
LAST TEN FISCAL YEARS
Page 1 of 2
Sales Tax Collections by Sector
1998-2002
1998 1999 2000 2001 2002
City of Renton, Washington
] Retail
Construction
] Manufacturing
]Transportation
Wholesale
Automotive
Services
]Miscellaneous
FISCAL YEAR
19981 1999 2000 2001 20022
RETAIL TRADE SECTOR
Furniture
N/A
$1,245,207
$1,564,002
$1,920,734
$1,623,906
Electronics and Appliances
General Merchandise
N/A
560,413
581,268
643,592
673,164
Misc Retail Trade
N/A
586,594
713,017
704,420
681,148
Others
N/A
1,495,038
1,641,879
1,608,082
1,622,166
Subtotal Retail
$3-128,884
$3,887,252
$4,500,166
$4,876-828
$4,600,384
OTHER SECTORS
Construction
$1,913,356
$1,545,886
$1,671,621
$2,060,061
$1,899,005
Manufacturing
710,983
411,607
348,439
426,965
547,333
Transportation
516,572
614,603
768,421
648,177
621,314
Wholesale
1,601,399
1,692,718
1,643,207
1,535,709
1,451,387
Automotive
2,840,747
3,446,262
3,775,582
3,307,794
3,549,973
Services
1,770,069
2,063,272
2,128,373
1,913,630
1,835,039
Miscellaneous
302,535
467,401
428,379
574,268
546,400
Subtotal - Other Sectors
$9,655,661
$10,241,749
$10-764.0 2
$10,466-604
$10,450,451
Total Sales Tax
$12.784.544
$14.129.001
$15,264-1 l38
$15.343.432
$15,050,835
1 The detail information for the Retail sector for 1998 is not available
2 Transportation category has been merged with Miscellaneous. Certain
group codes have been shifted around
to better reflect the
category they truly represent. (The shift will not affect the total sales
tax collected.)
Source: Finance Department, City of Renton
Statistical Section, 7-18
2007 Comprehensive Annual Financial Report
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
FUNCTION
TABLE 10
SALES TAX COLLECTIONS BY SECTOR
LAST TEN FISCAL YEARS
Page 2 of 2
Sales Tax Collections by Sector
2003-2007
2003 2004 2005 2006 2007
City of Renton, Washington
■ Retail
■ Construction
3 Manufacturing
3 Transportation
■ Wholesale
■ Automotive
■ Services
3 Miscellaneous
FISCAL YEAR
2003 2004 2005 2006 20072
RETAIL TRADE SECTOR
Furniture
$1,758,082
$2,205,114
$1,203,942
$1,276,644
$1,245,901
Electronics and Appliances
1,065,416
1,130,621
1,143,188
General Merchandise
788,699
1,013,876
1,073,144
1,100,217
1,169,225
Misc Retail Trade
763,596
862,919
848,834
928,083
658,429
Others
1,667,483
1,651,782
2,227,721
2,464,896
1,378,094
Subtotal Retail
$4-977.860
$5,733,691
$6,419,057
$6,900,461
$5,594,837
OTHER SECTORS
Construction
$2,122,560
$2,641,907
$2,495,684
$2,688,902
$3,898,202
Manufacturing
754,501
556,555
569,269
797,166
983,110
Transportation
563,863
628,918
494,866
567,401
Wholesale
1,442,263
1,416,559
1,025,132
1,016,468
1,083,059
Automotive
3,625,878
3,538,502
3,946,163
4,303,221
4,176,747
Services
1,953,254
1,677,315
1,736,569
2,039,090
4,103,240
Miscellaneous
567,225
460,372
421,715
378,233
503,000
Subtotal - Other Sectors
$11,024544
$10,920-128
$10,689,398
$11,790-482
$14,747,358
Total Sales Tax
$16,007,404
$16,653,819
$17,108,455
$18,690,943
$20,342,195
Statistical Section, 7-19
2007 Comprehensive Annual Financial Report
TABLE 11
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Page 1 of 2
2007
Primary Government Debt
PWTF Loans
15%
Bonds
47%
GO Bonds
38%
GOVERNMENTAL ACTIVITIES BUSINESS -TYPE ACTIVITIES
GENERAL SPECIAL
FISCAL OBLIGATION ASSESSMENT ENTERPRISE PWTF
YEAR BONDS BONDS BONDS LOANS
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
2007
44,017,551
33,405,000
9,802,877
Source: City of Renton, Finance & IS Department
'The percentage of personal Income column is based on personal income of King County. (See table 16)
City of Renton, Washington
Statistical Section, 7-20
2007 Comprehensive Annual Financial Report
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
TABLE 11
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Page 2 of 2
Primary Government Debt
Total Debt
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Years
BUSINESS -
TYPE
ACTIVITIES
TOTAL PRIMARY
FISCAL CAPITAL GOVERNMENT
YEAR LEASES DEBT
City of Renton, Washington
PERCENTAGE'
OF
PERSONAL DEBT PER
INCOME POPULATION CAPITA
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
8.69%
56,840
1,346
2006
24,500
90,140,834
9.33%
58,360
1,545
2007
76,074
87,301,502
N/A
60,290
1,448
Statistical Section, 7-21
2007 Comprehensive Annual Financial Report
Debt Limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
City of Renton, Washington
TABLE 12
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Page 1 of 2
FISCAL YEAR
1998
1999
2000
2001
2002
$ 319,387,557
$ 319,387,556
$ 340,899,076
$ 379,698,131
$ 419,541,037
26,958,807
24,462,390
22,248,983
27,586,389
32,258,499
$ 292,428,750
$ 294,925,166
$ 318,650,093
$ 352,111,742
$ 387,282,538
Source: City of Renton, Finance & IS Department
8.44% 7.66% 6.53% 7.27% 7.69%
Statistical Section, 7-22
2007 Comprehensive Annual Financial Report
TABLE 12
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Page 2 of 2
City of Renton, Washington
LEGAL DEBT MARGIN CALCULATION FOR FISCAL YEAR 2007
Assessed Value $ 8,370,801,805
Add back: exempt real property
Total assessed value $ 8,370,801,805
Debt Limit
2.5% of general purpose limit, voted and non -voted 209,270,045
2.5% Utility purpose limit, voted 209,270,045
2.5% Open Space, Park and Capital facilities, voted 209,270,045
Total Debt Limit $ 627,810,135
Debt applicable to limit:
General obligation bonds $ 44,000,575
Contracts Payable 16,976
44,017,551
Less: Amount set aside for repayment of
general obligation debt and contracts payable (1,392,915)
Total net debt applicable to limit $ 42,624,636
Legal Debt Margin $ 585,185,499
Statistical Section, 7-23
FISCAL YEAR
2003
2004
2005
2006
2007
Debt Limit
$ 448,787,441
$ 477,947,409
$ 502,332,893
$ 550,085,741 $
627,810,135
Total net debt applicable to limit
28,173,327
28,137,536
26,423,667
$ 42,515,728
42,624,636
Legal debt margin
$ 420,614,114
$ 449,809,873
$ 475,909,226
$ 507,570,013 $
585,185,499
Total net debt applicable to the limit
as a percentage of debt limit
6.28%
5.89%
5.26%
7.73%
6.79%
LEGAL DEBT MARGIN CALCULATION FOR FISCAL YEAR 2007
Assessed Value $ 8,370,801,805
Add back: exempt real property
Total assessed value $ 8,370,801,805
Debt Limit
2.5% of general purpose limit, voted and non -voted 209,270,045
2.5% Utility purpose limit, voted 209,270,045
2.5% Open Space, Park and Capital facilities, voted 209,270,045
Total Debt Limit $ 627,810,135
Debt applicable to limit:
General obligation bonds $ 44,000,575
Contracts Payable 16,976
44,017,551
Less: Amount set aside for repayment of
general obligation debt and contracts payable (1,392,915)
Total net debt applicable to limit $ 42,624,636
Legal Debt Margin $ 585,185,499
Statistical Section, 7-23
2007 Comprehensive Annual Financial Report
50,000,000
40,000,000
30,000,000
20,000,000
10,000,00(
City of Renton, Washington
TABLE 13
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
General Obligation Debt
-- LVV3 2004 2005 2006 2007
LESS:
NET
GENERAL' AMOUNTS'
GENERAL
FISCAL OBLIGATION AVAILABLE
OBLIGATION
YEAR BONDS IN DEBT
DEBT
1998
24,486,738
1999
26,466,763
2000
24,345,738
2001
29,289,290
2002
33,797,023
2003
32,245,982
2004
30,629,403
2005
29,107,664
2006
45,584,314
2007
44,017,551
Source:
32,256,820
Finance Department, City of Renton
2 King County
Department of Assessments
% OF GO
DEBT TO
ASSESSED ASSESSED PER
VALUE VALUE CAPITA
1,590,425
22,896,313
3,825,109,334
0.60%
495
2,345,570
24,121,193
4,258,500,750
0.57%
507
2,096,755
22,248,983
4,514,205,078
0.49%
445
1,770,724
27,518,566
4,988,126,362
0.55%
538
1,540,203
32,256,820
5,549,470,895
0.58%
599
1,879,654
30,366,328
5,959,258,370
0.51%
553
1,440,509
29,188,894
6,333,995,426
0.46%
527
2,683,999
26,423,665
6,697,750,147
0.39%
465
3,068,587
42,515,727
7,334,476,542
0.58%
729
1,392,915
42,624,636
8,370,801,805
0.51%
707
Statistical Section, 7-24
2007 Comprehensive Annual Financial Report
TABLE 14
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
$220
$200
$180
$160
N
a $140
0
0
o $120
c
o $100
$80
$60
$40
$20
$0
GOVERNMENTAL UNIT
City of Renton Direct and Overlapping Debt
Others - $0.5
ESTIMATED 2
DEBT' %
OUTSTANDING APPLICABLE
City of Renton, Washington
ESTIMATED
SHARE OF
OVERLAPPING
DEBT
City of Renton Direct Debt
$ 44,017,551
100%
$ 44,017,551
City of Renton Overlapping Debt
King County
1,100,812,149
2.83%
31,152,984
Port of Seattle
397,835,000
2.83%
11,258,731
Renton School District #403
220,744,287
57.33%
126,552,700
Issaquah School District #411
277,472,271
1.69%
4,689,281
Kent School District #415
242,615,894
0.0004%
970
Fire District 10-1
499,470
0.6667%
3,330
Fire District 40-1
9,946,110
0.8735%
86,879
King County Library
73,607,300
0.58%
426,922
City of Renton Overlapping Debt
Total Direct and Overlapping Debt
Sources
' King County Department of Executive Services
2 King County Department of Assessments
$ 174,171,797
$ 218,189,348
Statistical Section, 7-25
2007 Comprehensive Annual Financial Report
4.00
3.50
O 3.00
F
< 2.50
cc
2.00
W 1.50
O
U 1.00
0.50
0.00
City of Renton, Washington
TABLE 15
PLEDGED -REVENUE COVERAGE
LAST TEN FISCAL YEARS
WATER/SEWER & GOLF COURSE REVENUE BONDS
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
YEARS
FISCAL
YEAR
(a)
REVENUE
EXPENSES
W/O
DEPRECIATION
NET REVENUE
AVAILABLE FOR
DEBT SERVICE
DEBT SERVICE
PRINCIPAL INTEREST
(b)
COVERAGE
WATER AND
SEWER REVENUE BONDS:
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
2007
32,887,272
22,020,642
10,866,630
1,740,000
1,373,036
3.49
GOLF COURSE REVENUE BONDS (c):
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
2007
2,333,955
1,770,684
563,271
285,000
156,358
1.28
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
Statistical Section, 7-26
2007 Comprehensive Annual Financial Report
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
TABLE 16
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
UNEMPLOYMENT
RATE
■UNEMPLOYMENT RATE
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
City of Renton, Washington
Statistical Section, 7-27
PER CAPITA
UN -
PERSONAL
PERSONAL
SCHOOL
EMPLOYMENT
POPULATION a
INCOME b
INCOME °
MEDIAN
ENROLLMENT e
RATE f
FISCAL
KING
CITY OF
YEAR
COUNTY RENTON
KING COUNTY
KING COUNTY
AGE
RENTON
KING COUNTY
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
88,065,435,000
48,789
36.83
13,192
4.7%
2006
1,835,300 58,360
96,579,228,000
52,655
36.93
13,397
4.2%
2007
1,861,300 60,290
N/A
N/A
36.97
13,570
3.7%
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
T
Washington State Employment Security
Department
Statistical Section, 7-27
2007 Comprehensive Annual Financial Report
EMPLOYER
The Boeing Company
Valley Medical Center
Renton School District #403
PACCAR Inc.
Federal Aviation Administration
Renton Technical College
City of Renton
ER Solutions, Inc.
Youngs -Columbia of Washington LLC
IKEA
Multiple Zones International Inc.
Wizards of the Coast
K & L Distributors
Kay Smith Business
TABLE 17
PRINCIPAL EMPLOYERS
2007
City of Renton, Washington
1998
Source: 'Business license records and individual queries
Note: The table does not include non-profit organizations.
The 2007 FTE count for the City of Renton does not include temporary employees.
Statistical Section, 7-28
% OF TOTAL
% OF TOTAL
CITY
CITY
EMPLOYEES'
RANK
EMPLOYMENT
EMPLOYEES
RANK
EMPLOYMENT
13,224
1
30.43%
21,276
1
45.88%
2,400
2
5.52%
1,397
3
3.01%
1,376
3
3.17%
658
5
1.42%
1,268
4
2.92%
1,537
2
3.31%
997
5
2.29%
1,127
4
2.43%
835
6
1.92%
641
7
1.47%
644
7
1.39%
524
8
1.21%
392
9
0.90%
0.00%
356
10
0.82%
655
6
1.41%
326
8
0.70%
312
9
0.67%
292
10
0.63%
22,013
50.65%
28,224
60.86%
Source: 'Business license records and individual queries
Note: The table does not include non-profit organizations.
The 2007 FTE count for the City of Renton does not include temporary employees.
Statistical Section, 7-28
2007 Comprehensive Annual Financial Report
This page is intentionally left blank.
City of Renton, Washington
Statistical Section, 7-29
2007 Comprehensive Annual Financial Report
City of Renton, Washington
TABLE 18
FULL TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Page 1 of 2
Statistical Section, 7-30
FISCAL YEAR
1128
1999
2000
292
2002
FUNCTION
General Government
82.6
85.1
90.1
93.5
97.5
Public Safety
Police
Commissioned Officers
86.0
85.0
85.0
86.0
88.0
Non -Commissioned Officers
31.2
34.2
34.2
36.2
40.2
Fire
Commissioned Officers
100.0
103.0
105.0
105.0
105.0
Non -Commissioned Officers
10.0
10.0
11.0
11.0
12.0
Planning/Building/Public Works
Administration/Development Services
42.2
43.2
42.7
42.7
42.7
Transportation Systems
31.0
32.0
33.0
33.0
34.0
Utility Systems
22.2
20.2
20.7
20.8
20.8
Maintenance Services
58.0
59.5
59.5
61.0
61.0
Culture and Recreation
Parks and Recreation
77.5
77.5
78.5
80.5
77.5
Library
15.0
15.0
15.0
15.0
15.0
Golf Course
9.0
9.0
9.0
10.0
10.0
Total
564.7
573.7
583.7
594.7
603.7
Source: City of Renton, Finance & IS Department
Statistical Section, 7-30
2007 Comprehensive Annual Financial Report
City of Renton, Washington
TABLE 18
FULL TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Page 2 of 2
Statistical Section, 7-31
FISCAL YEAR
2003
2004
2005
2006
2007
FUNCTION
General Government
96.5
97.5
94.5
89.5
89.5
Public Safety
Police
Commissioned Officers
88.0
89.0
91.0
97.0
99.0
Non -Commissioned Officers
40.2
41.2
43.2
42.2
44.2
Fire
Commissioned Officers
105.0
106.0
106.0
106.0
107.0
Non -Commissioned Officers
12.0
13.0
13.0
14.0
15.0
Planning/Building/Public Works
Administration/Development Services
42.7
42.7
42.5
46.5
48.5
Transportation Systems
33.0
34.5
34.5
35.5
35.5
Utility Systems
20.8
20.8
20.8
24.8
29.3
Maintenance Services
62.0
62.0
62.0
64.1
67.0
Culture and Recreation
Parks and Recreation
77.5
77.5
76.5
76.5
81.0
Library
15.0
15.0
14.0
14.0
15.0
Golf Course
10.0
10.0
10.0
10.0
10.0
Total
602.7
609.2
608.0
620.0
641.0
Statistical Section, 7-31
2007 Comprehensive Annual Financial Report City of Renton, Washington
TABLE 19
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Page 1 of 2
Source: City of Renton Departments
Statistical Section, 7-32
FISCAL YEAR
1998
1999
2000
2001
2002
FUNCTION
Police
Physical arrests
1,860
2,287
2,463
3,411
3,813
Parking violations
4,240
3,379
5,955
6,325
4,776
Traffic violations
12,248
11,832
12,188
10,936
11,448
Fire
Number of calls answered
7,808
7,698
7,895
8,273
8,233
Inspections
1,880
2,021
2,265
2,269
2,261
Highways and Streets
Street resurfacing (miles)
1.15
4.65
1.76
6.54
6.13
Recyclables collected (tons/yr)
4,855.6
5,045.7
5,493.8
5,793.6
5,119.8
Culture and Recreation
Athletic field attendence
82,879
86,527
87,000
119,422
126,534
Community Center admissions
154,327
148,041
156,500
174,500
162,970
Library
Volume in collections
144,685
153,935
147,818
148,758
155,463
Total volumes borrowed
310,996
334,619
352,334
382,443
456,982
Water
Metered connection
13,595
14,279
14,224
13,969
14,583
Average daily consumption
7,554
7,426.5
7,457
7,097
7,232
(thousands of gallons)
Peak daily consumption
15,177
11,472
13,590
11,960
12,477
(thousands of gallons)
Source: City of Renton Departments
Statistical Section, 7-32
2007 Comprehensive Annual Financial Report City of Renton, Washington
TABLE 19
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Page 2 of 2
Statistical Section, 7-33
FISCAL YEAR
2003
2004
2005
2006
2007
FUNCTION
Police
Physical arrests
3,735
4,280
4,590
2,489
2,925
Parking violations
2,742
3,733
3,575
3,520
5,995
Traffic violations
11,651
10,963
12,866
10,172
9,148
Fire
Number of calls answered
8,582
8,984
9,202
10,096
10,159
Inspections
2,681
2,539
3,438
3,505
3,197
Highways and Streets
Street resurfacing (miles)
4.85
3.67
3.69
3.86
1.59
Recyclables collected (tons/yr)
4,389.0
4,920.3
4,934.2
4,843
5,004
Culture and Recreation
Athletic field participants
137,811
156,707
155,000
155,000
91,053
Community Center participants
172,911
172,537
177,761
177,761
162,476
Library
Volume in collections
158,676
165,406
190,011
193,965
188,359
Total volumes borrowed
499,792
512,059
491,470
464,333
491,397
Water
Metered connection
15,181
15,379
16,585
16,668
16,958
Average daily consumption
7,581
7,635
7,306
7,999
8,008
(thousands of gallons)
Peak daily consumption
14,080
14,248
13,025
15,271
14,750
(thousands of gallons)
Statistical Section, 7-33
2007 Comprehensive Annual Financial Report City of Renton, Washington
TABLE 20
CAPITAL ASSETS STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Page 1 of 2
Source: City of Renton Departments
Statistical Section, 7-34
FISCAL YEAR
1998
1999
2000
2001
2002
FUNCTION
Police safety
Police:
Stations
1.0
1.0
1.0
1.0
1.0
Patrol units
6.0
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)
190.1
180.6
195.4
195.6
213.2
Streetlights (added)
24.0
46.0
69.0
75.0
53.0
Culture and recreation
Parks acreage
1,158.0
1,158.0
1,158.0
1,158.0
1,158.0
Parks
27.0
28.0
28.0
26.0
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)
248.6
252.2
278.0
283
289.0
Fire hydrants
2,839
2,893
2,993
3,102
3,193
Sewer
Sanitary sewers (miles)
169.1
170.9
162.6
168.1
176.7
Storm sewers (miles)
177.9
180.9
183.8
189.7
199.4
Source: City of Renton Departments
Statistical Section, 7-34
2007 Comprehensive Annual Financial Report City of Renton, Washington
TABLE 20
CAPITAL ASSETS STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Page 2 of 2
Statistical Section, 7-35
FISCAL YEAR
2003
2004
2005
2006
2007
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)
213.7
213.7
218.0
224.6
233.7
Streetlights
120.0
92.0
86.0
134.0
213.0
Culture and recreation
Parks acreage
1,158.0
1,158.0
1,158.0
1,160.0
1,160.0
Parks
26.0
26.0
26.0
26.0
28.0
Swimming pools
-
1.0
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)
291.0
291.1
293.0
295.0
300.0
Fire hydrants
3,240
3,274
3,374
3,440
3,544
Sewer
Sanitary sewers (miles)
183.5
189.6
193.3
204.9
206.3
Storm sewers (miles)
204.0
209.7
214.8
219.7
222.3
Statistical Section, 7-35
2007 Comprehensive Annual Financial Report
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City of Renton, Washington
Statistical Section, 7-36