HomeMy WebLinkAbout2008 CAFR® City of ti�Y o�
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City of Renton, Washington
Comprehensive Annual
Financial Report
For the year ended December 31, 2008
rentonwa.gov
RENTON
AHEAD OF THE CURVE
Y
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CITY OF RENTON
II:
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For Year Ended December 31, 2008
Iwen Wang, Administrator
Michael Bailey, Former Administrator
Linda M. Parks, CPA, CGFM, Fiscal Services Director
Finance and 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 and Information Services Department
Finance and IS Administrator
Iwen Wang
Fiscal Services Director
Linda M. Parks, CPA, CGFM
Accounting Staff
Janee Hall, Finance Analyst II
Tina Hemphill, Finance Analyst III
Jill Masunaga, Senior Finance Analyst
Greg Nelson, Finance Intern
Hai Nguyen, Finance Analyst II
Kristi Rowland, Senior Finance Analyst
Tracy Schuld, Accounting Supervisor
Vidya Vinod, Finance Analyst III
Nancy Violante, Financial Services Manager
Cindy Zinck, Financial Services Manager
Administrative Assistant
Mary Roy
Print and Mail Coordinator
Karl Hurst
Form/Graphic Technician
Beth Haglund
TABLE OF CONTENTS
DECEMBER 31, 2008
ITEM PAGE
INTRODUCTORY SECTION
Letterof Transmittal..................................................................................................................................... 1-1
2007 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 ....................................................
4-6
Statement of Revenues, Expenditures and Changes in Fund Balances ...........................................
4-7
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Government Funds to the Statement of Activities.........................................4-8
Proprietary Fund Financial Statements:
Statementof Net Assets...................................................................................................................
4-9
Statement of Revenues, Expenses, and Changes in Fund Balances ..............................................
4-11
Statementof Cash Flows...............................................................................................................
4-12
Fiduciary Fund Statements:
Statement of Fiduciary Net Assets................................................................................................
4-14
Statement of Changes in Fiduciary Net Assets.............................................................................
4-15
Notes to Financial Statements:
Note 1: Significant Accounting Policies.........................................................................................4-16
Note 2: Compliance and Accountability.........................................................................................4-26
Note 3: Deposits and Investments...................................................................................................
4-28
Note4: Property Taxes....................................................................................................................
4-31
Note 5: Capital Assets and Depreciation.........................................................................................4-32
Note6: Pensions..............................................................................................................................4-35
Note 7: Other Post Employment Benefits.......................................................................................4-45
Note8: Contingencies.....................................................................................................................4-47
Note9: Risk Management...............................................................................................................
4-48
Note 10: Interfund Transactions........................................................................................................
4-51
Note11: Net Assets...........................................................................................................................
4-53
Note 12: Prior Year Restatements.....................................................................................................4-54
Note13: Short Term Debt.................................................................................................................
4-54
Note14: Long Term Debt.................................................................................................................4-55
Note 15: Deferred Charges in Proprietary Funds..............................................................................4-59
Note 16: Segment Information..........................................................................................................
4-59
Note17: Joint Ventures.....................................................................................................................4-59
Note 18: Subsequent Events..............................................................................................................
4-60
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
LEOFF I Retiree Medical Benefits - Schedule of Funding Progress........................................5-3
in
TABLE OF CONTENTS
DECEMBER 31, 2008
ITEM
Combining Statements
PAGE
Non -Major Fund Descriptions...............................................................................................................6-1
CombiningBalance Sheet......................................................................................................................6-5
Combining Statement of Revenues, Expenditures and Changes in Fund Balances.............................6-11
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budgetto Actual..................................................................................................................................6-17
Combining Statement of Net Assets, Non -Maj or Enterprise Funds ....................................................
6-29
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets,
Non -Major Enterprise Funds.........................................................................................................6-31
Statement of Cash Flows, Non -Major Enterprise Funds......................................................................6-32
Combining Statement of Net Assets, Internal Service Funds..............................................................
6-34
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets,
InternalService Funds...................................................................................................................6-36
Combining Statement of Cash Flows, Internal Service Funds.............................................................6-37
Statement of Changes in Assets and Liabilities Agency Fund — Special Deposit ...............................
6-39
STATISTICAL SECTION
Statistical Section Description...............................................................................................................7-1
Financial Trends:
Table 1: Net Assets by Component....................................................................................................
7-3
Table 2: Changes in Net Assets..........................................................................................................
7-4
Table 3: Fund Balance of Government Funds....................................................................................
7-6
Table 4: Changes in Fund Balances of Government Funds................................................................
7-8
Table 5: General Government Tax Revenue by Source...................................................................
7-10
Revenue Capacity:
Table 6: Principal Property Tax Payers............................................................................................7-11
Table 7: Assessed Value Taxable Property ......................................................................................7-12
Table 8: Property Tax Rates Direct and Overlapping Governments................................................7-14
Table 9: Property Tax Levies and Collections..................................................................................7-16
Table 10: Sales Tax Collections by Sector.........................................................................................7-18
Debt Capacity:
Table 11: Ratios of Outstanding Debt by Type..................................................................................
7-20
Table 12: Legal Debt Margin Information..........................................................................................
7-22
Table 13: Ratios of General Bonded Debt Outstanding.....................................................................
7-24
Table 14: Direct and Overlapping Governmental Activities Debt .....................................................
7-25
Table 15: 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 zY o
July 23, 2009
Honorable Denis Law, Mayor
Members of the Renton City Council
Residents of Renton
City of Renton, Washington
RE: THE 2008 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Dear Mayor Law, City Councilmembers, and Residents of Renton:
We are pleased to present the City's Comprehensive Annual Financial Report for the year ended
December 31, 2008. 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, 2008, 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, 2008, 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.
2008 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
22.24 square miles. We have over 1,181 acres of parks that includes 29 active parks. As
presented by the Washington State Office of Financial Management, our 2008 population was
80,708.
The City of Renton has a strong mayor form of government with an appointed Chief
Administrative Officer. The Mayor is independently elected to a four-year term. The Mayor's
job is to manage and implement the policies established by the seven -member City Council. The
Council establishes policies, appropriates monies through the budget process and adopts local
laws through ordinances. Each Councilmember serves a four-year term and they are elected on a
staggered two-year cycle. Both the Council and the Mayor are elected on a non-partisan basis.
The City is a general-purpose governmental entity and provides the full range of municipal
services allowed by statute or charter. These services include police, fire, emergency medical,
street 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
does not purchase water from outside sources. The City's sewage is treated by King County, but
Introduction, 1-2
2008 Comprehensive Annual Financial Report City of Renton, Washington
the City is responsible for transferring and maintaining the system to King County. The City
bills Renton residents a monthly fee for the cost of sewer treatment performed by King County.
The City also operates a golf course. All costs of the Maplewood Golf Course are paid from
green fees, driving range fees, revenue from the restaurant vendor, and other miscellaneous
revenue. The golf course has short-term operational costs, an active capital maintenance
program, and annual debt service payments for the construction of the clubhouse and the driving
range.
One operation the City has, which is somewhat unusual for cities our size, is its airport. The
Renton Municipal Airport is used by small private plane operators, a floatplane tourist company,
and Boeing initiates its maiden 737 flights from this airport. The operational costs of the airport
are paid from rental fees. Much of the major capital projects are paid by fees or with Federal
Aviation Administration grants.
The City of Renton complies with the Budgeting, Accounting, and Reporting System (BARS) as
delineated by the Office of the State Auditor as authorized under RCW 43.09.200 and 43.09.230.
State law also mandates timely submission of annual financial reports to the State Auditor for
annual independent audits. The City of Renton's financial system incorporates financial and
administrative controls to ensure the safeguarding of assets and reliability of financial reports.
These controls are designed to provide reasonable assurance that transactions are executed in
accordance with management authorization and are recorded in conformity with GAAP. They
also provide accountability of and control over assets and obligations, and sufficient reporting
and review exist to provide adequate information for analysis and comparability of data.
The City of Renton maintains budgetary controls to ensure compliance with legal provisions
embodied in the annual budget. All activities are appropriated through the annual budget process
and published in the City's Annual Budget document. The City Council must adopt an
ordinance to increase or decrease total appropriations in a Fund. The Mayor has the authority to
move appropriations within a Fund. A thorough discussion of the City's accounting policies can
be found under the Summary of Significant Accounting Policies in the Notes to the Financial
Statements.
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is a perspective of past activities that
influence the City's financial condition. The following information is presented to place that
information in context with the general economy.
Introduction, 1-3
2008 Comprehensive Annual Financial Report City of Renton, Washington
Economic Condition and Outlook
In Mayor Denis Law's 2009 State of the City's address he highlighted:
• "Total Renton employment is expected to decline about 3 percent this year.
Housing permits have dropped from more than 1,300 units in 2007 to less than
450 units last year and are anticipated to continue to go down."
• "Pull-back in consumer and business spending in our region is expected to
continue through this year, resulting in another cycle of falling taxable sales and
sales tax collection for the City."
• "Within the first couple weeks of this year, it became very apparent that revenues
were dropping at a rate higher than we could have foreseen, requiring that we
prepare for deficits that may reach 8% or more this year.
• "Despite the negative economy, Renton's population, housing stock, and retail
spending still outpaced comparable measures for King County and the region last
year.
New construction in the City has been between two and three times the regional
average over the past three years.
Employment growth for Renton between 2005 and 2008 outpaced that of King
County by 4%. We continued to see increased numbers of jobs in wholesale,
retail, and business services, and a diversification of our economy and
employment base.
The growth in Renton's total taxable retail sales was among the highest in the
region, at over 3% in 2008 when most cities were seeing declines.
Renton's assessed valuation has increased almost 100 percent over the last seven
years, from $5.0 billion in 2001 to nearly $10 billion in 2008".
UPDATE FROM BUDGET DOCUMENT
Outlook
"The total 2009 proposed expenditure budget is $252 million, of which $171 million is for City
operations, $57 million is for debt service and proposed capital projects, and $24 million
represents internal transfers that are offset by revenues. This represents a 2% increase over the
2008 adopted budget. The total revenues equal $245 million. The difference between revenues
and expenditures of about $7 million will be covered by prior year fund balances for capital
equipment and projects.
Of the $171 million operating budget, $101 million is for General Government Operations.
These are activities primarily supported by tax revenues. With the slowing economy and a high
rate of inflation, our preliminary projections indicate that maintaining current services in General
Governmental Operations will result in a deficit of over $5 million in 2009."
Introduction, 1-4
2008 Comprehensive Annual Financial Report City of Renton, Washington
"The proposed budget also reflects cost increases for specific purposes. These include the cost
of the Fire District 40 contract, an increase in equipment costs in the police operating budget, a
full year's cost for annexation -related personnel, and a proposed transfer of $1 million to fund
capital projects. Funding for these increases will come from the Fire District 40 service contract,
a full year of revenues from Annexation Sales Tax Credit, and continued growth in the share of
our property taxes that comes from new construction.
With these adjustments, we will be able to balance our operating budget with current operating
revenues, and use prior year fund balances only for one-time capital purposes."
Source: 2009 Budget Message
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 2008, the independent actuarial study estimates a (negative) net pension obligation of
($1,082,280), 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 $5,000 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
Finance Officers Association. The dedicated staff of the Finance Division work hard each day to
Introduction, 1-5
2008 Comprehensive Annual Financial Report
City of Renton, Washington
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. Significant contributors are specifically identified in the
acknowledgements on page ii of this document. 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,
Iwen Wang Linda M. Parks, CPA
Finance & Information Services Administrator Fiscal Services Director
Introduction, 1-6
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Renton
Washington
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2007
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.
aF�,�
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President
cxxasa
Executive Director
City of Renton Corporate Organization Structure
RENTON CITIZENS
CITY COUNCIL MAYOR MUNICIPAL COURT
Randy Corman, President Denis Law JUDGE
Don Persson, Marcie Palmer 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
Support Operations Bureau
Chuck Marsalisi, Deputy Chief
Special Operations
Investigations
Administrative
Services
Staff and Auxiliary
Services
Field Operations Bureau
Tim Troxel, Deputy Chief
Patrol Services
Patrol Operations
City Attorney
Larry Warren, Administrator
(425) 255-8678
PUBLIC WORKS
Gregg Zimmerman,
Administrator
425-430-7394
Maintenance Services
Michael Stenhouse, Director
Transportation Systems
Peter Hahn, Deputy
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
L'o
Safety and
pport Services
bert Van Horne
Deputy Fire Chief
LCommunity Risk
Reduction
Bill Flora
Deputy Fire Chief
Emergency Management
Deborah Needham
Director
COMMUNITY AND
ECONOMIC DEVELOPMENT
Alex Pietsch,
Administrator
425-430-6580
Economic Development
and Neighborhoods
Suzanne Dale Estey,Director
Development Services
Neil Watts, Director
Planning
HUMAN RESOURCES
AND RISK MANAGEMENT
Nancy Carlson, Administrator
425-430-7650
Human Resources
Civil Service Commission
Risk Management
ADMINISTRATIVE AND
JUDICIAL 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
FINANCE AND
INFORMATION SERVICES
Iwen Wang, Administrator
425-430-6858
Finance
Linda Parks,
Fiscal Services Director
Information Services
George McBride,
IS Director
Print and Mail
Services
�M1
Washington State Auditor
Brian Sonntag
INDEPENDENT AUDITOR'S REPORT
July 23, 2009
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, 2008,
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, 2008, 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.
As described in Note 7, during the year ended December 31, 2008, the City has implemented
the Governmental Accounting Standards Board's Statement 45, Accounting and Financial
Reporting by Employers for Postemployment Benefits Other Than Pensions.
The management's discussion and analysis on pages 3-1 through 3-15, budgetary comparison
information on page 5-1 and pension trust fund information on page 5-2 are not a required part
of the basic financial statements but are supplementary information required by the
Governmental Accounting Standards Board. We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of measurement and
Insurance Building, PO Box 40021 • Olympia, Washington 98504-0021 • (360) 902-0370 • (866) 902-3900 • TDD Relay (800) 833-6388
04 FAX (360) 753-0646 • http://www.sao.wa.gov
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 financial statements and supplemental information on pages 6-1 through 6-39 is
presented for purposes of additional 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
2008 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, 2008. 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 2008
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
2008 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, 2008, exceeded liabilities by over $644.5 million.
• As of December 31, 2008, the City's Governmental Activities reported net assets of $420.7
million. Of this total, $34.2 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 $353.2 million of the $420.7 million in Governmental
Activities net assets.
• The business type activities have total net assets of $223.9 million. Ninety (90.4%) percent
of this total, $202.3 million, represents the City's investments in capital assets. An
unrestricted balance of $17.4 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, 2008, was $101.5million.
Of this amount, $50 million are revenue bonds and PWTF loans dedicated to the waterworks
projects. Another $505,000 is for outstanding bonds for Senior Housing. These bonds have
a special taxing authority. The Golf Course has $2.6 million outstanding in debt service.
Employee leave balances total $6.49 million. The balance of $41.9 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 2008. 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.
Management's Discussion and Analysi, 3-2
2008 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 waterworks (water, sewer, and surface water), solid waste management and services,
golf course, and airport.
Management's Discussion and Analysis, 3-3
2008 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, Judicial,
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.
Management's Discussion and Analysi, 3-4
2008 Comprehensive Annual Financial Report City of Renton, Washington
Governmental Funds present most of a government's tax -supported activities.. The Proprietary
Funds describe and financially manage the government's business -type activities where all or part
of the activities' costs are supported by fees and charges that are paid directly by those who benefit
from the activities. Fiduciary Funds control resources held by the government as a trustee or agent
for parties outside of the government. The resources of Fiduciary Funds cannot be used to support
the government's own programs.
Governmental Funds
The Governmental Fund Balance Sheet and Governmental Fund Statement of Revenues,
Expenditures, and Changes in Fund Balances present separate columns of financial data for the
General Fund and Capital Investment Fund. These comprise the City's major governmental funds.
Data from the remaining governmental funds are combined and presented in a single, aggregated
column in the fund statements. Individual fund data for each of the non -major governmental funds
is provided in the form of combining statements.
Governmental Funds are used to account for essentially the same functions reported as
governmental activities in the Government -wide Financial Statements. The focus of Governmental
Fund Financial Statements is on near-term inflows and outflows of available financial resources and
on balances of resources available at the end of the fiscal year. Such information is useful in
evaluating whether there are more or less financial resources that can be spent in the near future to
finance City services.
Because the focus of governmental Fund Financial Statements is a narrower view than that of the
Government -wide Financial Statements, it is useful to compare information presented for
governmental funds with similar information presented for governmental activities in the
Government -wide Financial Statements. This gives the reader a better understanding of the long-
term impact of the government's near-term financing decisions. The Governmental Fund Balance
Sheet and the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund
Balances provide reconciliation to the governmental activities column in the government -wide
statements to facilitate this comparison.
The City maintains budgetary controls over its governmental funds. Budgetary controls ensure
compliance with legal provisions embodied in the annual appropriated budget. Governmental fund
budgets are established in accordance with state law and are adopted on a fund level. General fund
budget variances are specifically addressed later in this discussion and analysis.
Proprietary Funds
These types of funds consist of two types of funds: Enterprise and Internal Service. They have
always been operated as private business activity. Enterprise Funds are used to report the same
functions as business -type activities in the Government -wide Financial Statements. Internal Service
Funds are used to report activities that provide supplies and services to various City departments
and to accumulate and allocate the associated costs of providing these services to the various
functions. The revenues and expenses of Internal Service Funds that are duplicated in other funds
are eliminated in the government -wide statements. Because the remaining balances primarily
benefit governmental, rather than business -type activities, they have been included within
Governmental Activities in the Government -wide Statements.
Management's Discussion and Analysis, 3-5
2008 Comprehensive Annual Financial Report
City of Renton, Washington
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
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 2007 to 2008 shows an increase in total net assets of $137 million.
Table 1 is a condensed version of the Government -wide Statement of Net Assets.
Management's Discussion and Analysi, 3-6
2008 Comprehensive Annual Financial Report
Table 1
NET ASSETS
Governmental Governmental Business -type Business -type
Activities Activities Activities Activities
2007 2008 2007 2008
City of Renton, Washington
Total
Total
Primary
Primary
Government
Government
2007
2008
Current and other assets
$88,100,131
83,713,100
$24,024,920
25,229,239
$112,125,051
108,942,339
Land
88,947,494
175,559,921
6,976,321
6,976,321
95,923,814
182,536,242
Construction in process
41,893,039
29,912,496
5,699,290
10,014,741
47,592,327
39,927,237
Capital assets (net of
32,648,993
33,294,987
3,586,667
4,171,525
36,235,660
37,466,512
accumulated depreciation)
143,161,082
191,794,358
218,642,046
236,611,238
361,803,128
428,405,596
TOTAL ASSETS
$362,101,746
480,979,875
$255,342,577
278,831,539
$617,444,320
759,811,414
Long tern liabilities $49,397,374 48,275,566 $43,999,200 53,152,711 93,396,574 101,428,277
Other liabilities 15,265,203 12,051,530 1,265,319 1,821,099 16,530,522 13,872,629
TOTAL LIABILITIES $64,662,577 60,327,096 $45,264,519 54,973,810 $109,927,096 115,300,906
NET ASSETS
Invested in capital assets,
net of related debt
$232,714,563
353,197,782
$188,518,151
202,255,997
$421,232,714
555,453,779
Restricted
32,648,993
33,294,987
3,586,667
4,171,525
36,235,660
37,466,512
Unrestricted
32,075,613
34,160,010
17,973,237
17,430,207
50,048,850
51,590,217
TOTAL NET ASSETS
$297,439,169
420,652,779
$210,078,055
223,857,729
$507,517,224
644,510,508
The majority of the City's net assets (86%) 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 2007 to 2008 by $134.3 million.
Investment in capital assets increased by $120.5 million in the Governmental Funds and $13.7
million in the Business -type activities primarily due to annexations. The largest was Benson Hill
adding over 16,000 new residents. This annexation is further discussed in Note 1 and 12 of the
financials.
Chart 1
$700,000,000 CATEGORIES OF NET ASSETS
$ 600,000,000
$ 500,000,000
$400,000,000
$ 300,000,000
$200,000,000
$100,000,000
$0
_
C5.5
0 �
o .5
0.1 .c
0 .?
CQ
o
MUnrestricted
c7 d
Up d
c d
o d
o
L7
ERestricted
'
■Invested in capital assets
Management's Discussion and Analysis, 3-7
2008 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 (5.8) of total net assets, down from nine percent (7.1 %) in 2007. The
remaining balance (unrestricted net assets) of $51.6 million may be used to meet the City's ongoing
obligations. Chart 1 provides a graphical comparison of the three categories of net assets for 2007
and 2008.
As of December 31, 2008, 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 $22.5 million. Governmental activities generated eighty percent (80%) of this
total or $17.9 million, while business -type activities generated $4.6 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 2008 Annual Report.
Chart 2
2008 TOTAL REVENUES BY SOURCE
Interest/Investment
earnings
2% Miscellaneous
Business 1%
Taxes Excise Taxes
7% 2%
Sales Taxes
13%
Property Taxes
17%
Capital
Grants/Contribution
14%
Charges for Services
36%
Operating Grants &
Contributions
6%
Management's Discussion and Analysi, 3-8
2008 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 2007 Activities 2008 Activities 2007 Activities 2008 2007 2008
REVENUES:
$29,112,970
$12,010,422
$5,648,731
$4,686,133
$29,112,970
$12,010,422
Program revenues:
1,845,031
1,761,665
(110,000)
1,845,031
1,761,665
Charges for services
$36,863,657
$17,592,481
$45,403,349
$44,651,684
$82,267,006
$62,244,165
Operating grants & contributions
5,265,737
9,570,931
243,537
264,784
5,509,274
9,835,715
Capital grants & contributions
4,940,471
18,109,124
1,761,802
6,888,975
6,702,273
24,998,099
GENERAL REVENUES:
6,880,687
6,823,426
$210,078,038
$223,857,729
6,880,687
6,823,426
Property taxes
23,106,578
29,381,036
23,106,578
29,381,036
Sales taxes
22,749,831
23,190,076
22,749,831
23,190,076
Business taxes
11,962,879
14,945,173
11,962,879
14,945,173
Othertaxes
8,236,876
4,362,945
8,236,876
4,362,945
Penalties and interest
33,949
6,477
$28,657,468
$32,738,366
33,949
6,477
Interest and investment earnings
3,465,517
2,419,260
1,041,576
1,120,342
4,507,093
3,539,602
Miscellaneous
1,218,889
2,104,133
135,986
85,493
1,354,875
2,189,626
TOTAL REVENUES
$117,844,384
$121,681,636
$48,586,250
$53,011,278
$166,430,634
$174,692,914
PROGRAM EXPENSES
GOVERNMENTAL ACTIVITIES
General government services
$29,112,970
$12,010,422
$5,648,731
$4,686,133
$29,112,970
$12,010,422
Judicial
1,845,031
1,761,665
(110,000)
1,845,031
1,761,665
Security of persons and property
36,213,120
46,289,454
5,648,731
4,576,133
36,213,120
46,289,454
Physical environment
2,749,417
3,333,471
204,429,324
210,078,055
2,749,417
3,333,471
Transportation
11,237,287
13,675,581
9,203,541
11,237,287
13,675,581
Economic environment
6,880,687
6,823,426
$210,078,038
$223,857,729
6,880,687
6,823,426
Mental and physical health
301,495
325,066
301,495
325,066
Culture and recreation
11,036,931
17,025,800
11,036,931
17,025,800
Interest on long-term debt
2,594,784
2,663,436
2,594,784
2,663,436
Business -type activities
Water
$28,657,468
$32,738,366
28,657,468
32,738,366
Airport
1,396,054
1,733,894
1,396,054
1,733,894
Solid waste
10,606,560
11,518,047
10,606,560
11,518,047
Golf
2,277,454
2,334,838
2,277,454
2,334,838
TOTAL EXPENSES
$101,971,722
$103,908,321
$42,937,536
$48,325,145
$144,909,258
$152,233,466
Increase in net assets before transfers
$15,872,662
$17,773,315
$5,648,731
$4,686,133
$21,521,391
$22,459,448
Transfers
110,000
(110,000)
Increase in net assets
15,872,662
17,883,315
5,648,731
4,576,133
21,521,391
22,459,448
Netassets- beginning
281,566,509
297,439,169
204,429,324
210,078,055
485,995,833
507,517,224
Prior period adjustment
105,330,297
9,203,541
114,533,838
Net Assets—ending
$297,439,171
$420,652,781
$210,078,038
$223,857,729
$507,517,224
$644,510,510
Seventy percent (70%) of the City of Renton's total revenue activities are for general governmental
activities such as providing police, fire, parks, libraries, recreational, building safety, and planning
services.
The largest business type activities
include water, sewer, surface water, solid
waste, and golf activities.
Governmental Activities Analysis
Governmental activities cost a total of
$103.9 million in 2008, up $1.9 million
from 2007. Of this amount, $45.3 million
was paid for either by those who directly
benefited from the programs or by other
governments and organizations that
subsidized certain programs with grants
Chart 3
2008 COMPARISON OF TOTAL GOVERNMENTAL vs
BUSINESS TYPE EXPENSES
Business Type Governmental
Activities Activities
32%
Management's Discussion and Analysis, 3-9
68%
2008 Comprehensive Annual Financial Report
City of Renton, Washington
and contribution. The net expense (total expenses less program revenues) of $58.6 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).
$50,000,000
$45,000,000
$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 ACTIVITIES
PROGRAM REVENUES AND EXPENSES
2007 vs 2008
G yp, ro\ ,y q�,� ° � °�ti t�°lti �`°,� �'�°� °�ti �� e'�Sl
r2�'� °tib o�Sa o4 SJ a4So agto4 ,t°ofi �`t°9 sq°t 4°cam ago aSo oil fi`� �c� °66'
�° Seo S�°o
3b9 °Sma P`�r °�4o
yo° do o�q¢�° o�qs° ^q��S`
o°�Seo°,S�J��� ryoo°o ry°o^ ryoo� foo^� ���� ryoo^ �oo�
ti ti
Chart 5 depicts the sources of revenues that fund governmental activities. Approximately fifty-eight
(58%) is from various taxes. Charges for services, grants, and interest earnings generate forty-two
percent (42%) of total revenue for general governmental activities.
Management's Discussion and Analysi, 3-10
2008 Comprehensive Annual Financial Report
Chart 5
GOVERNMENTAL ACTIVITIES
REVENUES BY SOURCE
Capital Grants
15%
Operating Grants
8%
Charges for Services
14%
Miscellaneous
2%
Interest Earnings
3%
Business Taxes
12%
Excise Taxes
4%
City of Renton, Washington
Property Taxes
23%
Retail Sales Taxes
19%
Business -Type Activities Analysis
Charts 6 and 7 present the same information on business -type activities as illustrated for general
governmental type activities. Chart 6 shows the expense of each of the City's business -type
programs along with each program's generated revenues (fees and intergovernmental revenues
specifically related to that program.)
$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 ERevenues
PROGRAM REVENUES AND EXPENSES
2007 2008 2007 Airport 2008 Airport 2007 Solid 2008 Solid 2007 Golf 2008 Golf
Waterworks Waterworks Waste Waste Course Course
The Waterworks Utility had a positive net change of $5.1 million at the end of 2008 compared to
$5.2 million in 2007. The City generated $37.8 million in various fees for services and other
sources from waterworks activities above the $32.7 million in expenses.
Management's Discussion and Analysis, 3-11
2008 Comprehensive Annual Financial Report
City of Renton, Washington
The Airport's total expenses were $1.7 million. Grant revenues for 2008 were $179,292 with total
revenues of $1.3 million.
The Solid Waste Utility's revenues were $10.5 million generated from fees for services and
$264,784 in grants. The total expenses were $11.5 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. The Golf Course had a loss of
$71,997 for the year.
Business -type activities are supported
primarily from charges for services. In the
City of Renton, $44.7 million was generated
from charges for services in the business -type
activities. These comprise eighty-five percent
(85%) of the total financial support for these
activities. Grant revenues increased $5.2
million from 2007 to 2008.
Chart 7
BUSINESS TYPE ACTIVITIES
REVENUES BY SOURCES
Interest &
Grants Miscellaneous
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
Governmental Funds Analysis
Charges for
Services
85%
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 $47.8 million, a decrease of $2.7 million in comparison to last year. Approximately ten
percent (10%) 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 decrease resulted from higher actual expenditures (budgeted) over the previous year
and shortfalls in actual revenues over projections due to the slowdown of economy. This is further
discussed under the General Fund Budgetary Highlights in this document.
The General Fund is the chief operating fund of the City. At the end of the current year, unreserved,
undesignated fund balance of the general fund was $4.9 million, while total fund balance ended at
$13.5 million. The fund balance total decreased $3 million during the fiscal year. Excess of
expenditures over revenues, excluding internal transfers was $2.4 million in 2008.
Management's Discussion and Analysi, 3-12
2008 Comprehensive Annual Financial Report
City of Renton, Washington
Besides the General Fund, the City has only one other major governmental fund. The Capital
Improvement Fund was a new major fund in 2007 and had a net change (increase) in fund balance
of $4.1 million. Even with this increase the City was able to spend $18 million on capital
improvements and major maintenance.
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.
Net assets in the Waterworks Utility Fund and the Solid Waste Fund were $203.7 million and $1.4
million respectively. This represents an increase in Waterworks Utility Fund of $15.2 million and a
decrease in the Solid Waste Fund of $959,861 in net assets. Of the total net assets increase in the
Waterworks Utility Fund, $9.2 million was a prior period adjustment and is discussed further in
Note 12 of the financial statements. In addition capital contributions were $5 million over last year.
While the Solid Waste fund's revenues have not changed from the prior year, the amount to operate
the fund has increased resulting in a $1.3 million dollar operating loss. Other factors concerning the
finances of these two funds have already been addressed in the discussion of business -type
activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year there was a $ 5,453,949 increase (excluding internal transfers) in appropriations
between the original and final amended budget. This increase was mainly due to the Fire District
#40 contract and Benson Hill annexation. The City however took aggressive action to reduce the
level of spending in the General Fund to compensate for expected revenue shortfalls. The General
Fund budget did not spend $5,304,891 (excluding internal transfers) of the legally appropriated
expenditures. Even with this reduction the City had to use $2,965,287, including a $519,503
transfer out, of its prior years fund balance reducing the $16.5 million balance to $13.5 million.
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, 2008, amounts to $650.9 million as
presented on the following table.
Management's Discussion and Analysis, 3-13
2008 Comprehensive Annual Financial Report
Table 3
CAPITAL ASSETS
(Net of Accumulated Depreciation)
Governmental Activities Business
1 /l /2008 12/31/2008 1/1/2008
City ofRenton, Washington
Activities Total Activities
12/31/2008 1/1 /2008 12/31/2008
Land
$88,947,494
$175,559,920
$6,976,321
$6,976,321
$95,923,815
$182,536,241
Construction in progress
41,893,039
29,912,497
5,699,288
10,014,741
47,592,327
39,927,238
Buildings and structures
52,356,883
48,596,215
10,799,011
12,130,440
63,155,894
60,726,655
Other improvements
78,576,142
127,068,177
206,963,989
223,715,208
285,540,131
350,783,385
Machinery and equipment
12,228,057
16,129,966
879,046
765,590
13,107,103
16,895,556
$274,001,615
$397,266,775
$231,317,655
$253,602,300
$505,319,270
$650,869,075
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, 2008, was $101.5 million.
This was a net increase (new issues less principal payments and refundings) of $8.1 million.
Table 4
OUTSTANDING DEBT
General Activities Business Type Activities Total Activities
1/1/2008 12/31/2008 1/1/2008 12/31/2008 1/1/2008 12/31/2008
General obligation bonds
$44,956,950 $42,397,414
$44,956,950
$42,397,414
Revenue debt
$33,405,000
43,310,000
33,405,000
43,310,000
Other long term debt
9,878,951
9,226,394
9,878,951
9,226,394
Employee benefits
4,440,424 5,878,152 715,249
616,317
5,155,673
6,494,470
$49,397,374 $48,275,566 $43,999,200
$53,152,711
$93,396,574
$101,428,277
The Water and Sewer Revenue Bonds (A and B) were issued January 4, 2008 in the amount of
$9,975,000 and $2,035,000, respectfully. The average interest rate is 4.17%. These bonds were
issued for the purpose of providing money to pay part of the costs of construction and acquisition
of certain improvements to the waterworks utility.
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 and 18 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 maintain its level of services during this economic slowdown.
• The Landing is a master planning development area on land previously owned by Boeing.
The development will add more than 900 residential units and 600,000 square feet of retail,
including a major entertainment district to the city's core.
• The City has begun working with developers and the Boeing Company on the second phase
of the Landing, which may include high-quality office buildings and a hotel.
Management's Discussion and Analysi, 3-14
2008 Comprehensive Annual Financial Report
City of Renton, Washington
• The Boeing Company, the largest employer in the City, employs approximately 12,000
employees.
• The Federal Reserve Bank of San Francisco Seattle headquarters and the Seattle Seahawks'
Virginia Mason Athletic Center opened in Renton this year.
• The City annexed the Benson Hill area that included the Cascade Shopping Center. The
City is working with the owner on redevelopment opportunities.
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 Iwen Wang, FIS Administrator, 1055 South Grady Way,
Renton, WA 98057 or visit our web site at http://rentonwa.gov/.
Management's Discussion and Analysis, 3-15
2008 Comprehensive Annual Financial Report
This page intentionally left blank.
City ofRenton, Washington
Management's Discussion and Analysi, 3-16
2008 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:
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, 2008
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES TOTAL
$ 23,540,666 $ 3,978,160 $ 27,518,826
32,874,707 13,907,872 46,782,579
21,011,971
5,488,640
26,500,611
(5,269)
5,269
-
-
555,337
555,337
604,984
-
604,984
5,686,041
853,808
6,539,849
-
440,153
440,153
175,559,921
6,976,321
182,536,242
29,912,496
10,014, 741
39,927,237
191,794,358
236,611,238
428,405,596
$ 480,979,875
$ 278,831,539
$ 759,811,414
11,094, 623
1,642,023
12,736, 646
361,998
292,457
654,455
589,299
(336,283)
253,016
5,610
222,902
228,512
5,633,558
3,277,619
8,911,177
42,642,008
49,875,092
92,517,100
$ 60,327,096
$ 54,973,810
$ 115,300,90-6–
$ 353,197,782
$ 202,255,997
$ 555,453,779
2,806,667
-
2,806,667
29,217,384
-
29,217,384
1,270,936
4,171,525
5,442,461
34,160,010
17,430,207
51,590,217
$ 420,652,779
$ 223,857,729
$ 644,510,508
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-1
2008 Comprehensive Annual Financial Report
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2008
Page 1 of 2
FUNCTIONS/PROGRAMS
EXPENSES
Primary government:
2,420,913
Governmental activities:
-
General government
$ 12,010,422
Judicial
1,761,665
Security of persons and property
46,289,454
Physical environment
3,333,471
Transportation
13,675,581
Economic environment
6,823,426
Mental and physical health
325,066
Culture and recreation
17,025,800
Interest on long-term debt
2,663,436
Total governmental activities
$ 103,908,321
Business -type activities
City of Renton, Washington
PROGRAM REVENUES
OPERATING
CHARGES FOR GRANTS AND CAPITAL GRANT
CGD\/1(`CC r nNITDIRI ITIf1AIC R. r r)r,1TDIRI ITIMIQ
$ 5,614,638 $
8,250,260 $
3,261,380
2,420,913
-
-
550,773
810,227
Solid waste utility
864,581
305,851
-
2,165,538
12,519
14,207,150
4,236,983
15,000
500,000
-
-
7,500
1,739,055
177,074
133,094
$ 17,592,481 $
9,570,931 $
18,109,124
Waterworks utility
$ 32,738,366 $
31,110,061 $
$ 6,709,683
Airport
1,733, 894
1,086,064
179,292
Solid waste utility
11,518,047
10,192,718
264,784 -
Golf course
2,334,838
2,262,841
- -
Total business -type activities
$ 48,325,145 $
44,651,684 $
264,784 $ 6,888,975
Total primary government
$ 152,233,466 $
62,244,165 $
9,835,715 $ 24,998,099
General revenues:
Taxes:
Property taxes
Retail sales taxes
Business taxes
Excise taxes
Penalties and interest
Interest and investment earnings
Gain on Sales of Assets
Miscellaneous
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning
Prior Period Adjustment
Net assets - ending
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-2
2008 Comprehensive Annual Financial Report City of Renton, Washington
Page 2 of 2
NET (EXPENSE) REVENUE AND
CHANGES IN NET ASSETS
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES TOTAL
$ 5,115,856
$
$ 5,115,856
659,248
23,190,076
659,248
(44,928,454)
23,190,076
(44,928,454)
(2,163,039)
(2,163,039)
2,709,626
2,709,626
(2,071,443)
6,477
(2,071,443)
(452,102)
6,477
(452,102)
(14,842,043)
1,120,342
(14,842,043)
(2,663,436)
(2,663,436)
$ (58,635,787)
110,000
$ (58,635,787)
$
5,081,378
$ 5,081,378
$
(468,538)
(468,538)
$ 17,883,313
(1,060,545)
(1,060,545)
$ 22,459,446
(71,997)
(71,997)
$
3,480,298
$ 3,480,298
$ (58,635,787) $ 3,480,298 $ (55,155,489)
$ 29,381,036
$
$ 29,381,036
23,190,076
23,190,076
14, 945,173
14,945,173
4,362,945
4,362,945
6,477
6,477
2,419,260
1,120,342
3,539,602
2,104,133
85,493
2,189,626
110,000
(110,000)
-
$ 76,519,100
$
1,095,835
$ 77,614,935
$ 17,883,313
$
4,576,133
$ 22,459,446
$ 297,439,169
$
210,078,055
$ 507,517,224
$ 105,330,297
$
9,203,541
$ 114,533,838
$ 420,652,779
$
223,857,729
$ 644,510,508
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-3
2008 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, 2008
Page 1 of 2
OTHER TOTAL
CAPITAL GOVERNMENTAL GOVERNMENTAL
GENERAL INVESTMENT FUNDS FUNDS
$ 3,731,827 $
2,528,155 $
7,814,267 $
14,074,249
6,418,107
196,482
14,965,657
21,580,246
2,636,311
-
265,558
2,901,869
3,092,363
1,156
1,999,506
5,093,025
71,661
52,808
924,138
1,048,607
-
-
1,000,000
1,000,000
923
-
178,975
179,898
4,191,637
6,097,410
882,428
11,171,475
8,000
-
-
8,000
$ 20,150,829 $
8,876,011 $
28,030,529 $
57,057,369
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-4
2008 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:
Interfund loans receivable
Prepaid items
Unreserved, designated for:
General fund contingencies
Special revenue fund contingencies
Debt service fund contingencies
Capital project fund contingencies
Unreserved reported in:
General fund
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
City of Renton, Washington
BALANCE SHEET
GOVERNMENTALFUNDS
December 31, 2008
Page 2 of 2
OTHER TOTAL
CAPITAL GOVERNMENTAL GOVERNMENTAL
GENERAL INVESTMENT FUNDS FUNDS
$ 1,654,643
$ 335,797
$ 998,840
$ 2,989,280
16,355
-
45,588
61,943
-
48,808
122,927
171,735
184,244
-
-
184,244
-
1,000,000
1,000,000
39,438
-
39,438
34,739
32,981
67,720
1,194,583
22,292
1,216,875
3,509,730
-
4,320
3,514,050
$ 6,633,732
$ 384,605
$ 2,226,948
$ 9,245,285
$ -
$ -
$ 1,000,000
$ 1,000,000
8,000.00
-
8,000.00
8,615,230
-
8,615,230
-
2,806,667
2,806,667
-
1,270,936
1,270,936
-
8,491,406
20,725,978
29,217,384
4,893,867
-
-
4,893,867
$ 13,517,097
$ 8,491,406
$ 25,803,581
$ 47,812,084
$ 20,150,829
$ 8,876,011
$ 28,030,529
$ 57,057,369
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-5
2008 Comprehensive Annual Financial Report City of Renton, Washington
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
December 31, 2008
FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
$ 47,812,084
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
$ 391,390,014
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
$ 840,007
Long-term liabilities, including bonds payable are not due and payable in the
current period and therefore are not reported in the governmental funds
Interest payable
$
Long-term liabilities
(48,732,008)
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
$ 29,342,682
NET ASSETS OF GOVERNMENTAL ACTIVITIES
$ 420,652,779
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-6
2008 Comprehensive Annual Financial Report
City of Renton, Washington
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
For the Year Ended December 31, 2008
Page 1 of 1
REVENUES
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeits
Interfund revenues
Contributions
Investment earnings
Miscellaneous revenues
TOTAL REVENUES
EXPENDITURES
Current:
General government
Judicial
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)
OTHER TOTAL
CAPITAL GOVERNMENTAL GOVERNMENTAL
GENERAL IMPROVEMENT FUNDS FUNDS
$ 66,844,997 $
- $
5,669,391 $
72,514,388
2,751,420
1,956,165
268,000
4,975,585
8,773,933
17,358,161
1,417,527
27,549,621
3,976,920
-
3,169,030
7,145,950
2,002,854
47,812,084
-
2,002,854
3,072,526
-
3,072,526
-
135,000
135,000
587,590
1,152,445
1,740,035
64,359
-
1,209,000
1,273,359
$ 88,074,599 $
19,314,326 $
13,020,393 $
120,409,318
$ 14,387,478 $
- $
706,662 $
15,094,140
1,761,665
-
1,761,665
45,530,208
45,530,208
3,123,883
3,123,883
6,332,006
-
6,332,006
6,232,669
441,012
6,673,681
16,459
-
16,459
11,119,073
-
-
11,119,073
2,017,677
17,991,860
8,510,916
28,520,453
-
-
2,079,551
2,079,551
-
-
2,729,247
2,729,247
$ 90,521,118 $
17,991,860 $
14,467,388 $
122,980,366
$ (2,446,519) $
(2,571,048)
1,322,466 $
(1,446,995) $
$ - $
2,868,229 $
1,185,378 $
4,053,607
(519,503)
(75,000)
(3,606,104)
(4,200,607)
735
19,908
20,643
$ (518,768) $
2,813,137 $
(2,420,726) $
(126,357)
NET CHANGE IN FUND BALANCE
$
(2,965,287) $
4,135,603 $
(3,867,721) $
(2,697,405)
FUND BALANCE JANUARY 1
$
16,482,384 $
4,355,803 $
29,671,302 $
50,509,489
FUND BALANCE DECEMBER 31
$
13,517,097 $
8,491,406 $
25,803,581 $
47,812,084
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-7
2008 Comprehensive Annual Financial Report
City of Renton, Washington
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
GOVERNMENTALFUNDS
For the Year Ended December 31, 2008
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
Expenditures for capital assets less current year depreciatior $ 14,344,797
Repayment of long-term debt is an expenditure in governmen•
tal funds, but the repayment reduces long-term liabilitieE
in the statement of net assets. Loan or bond proceeds
provide current financial resources to governmenta
funds, but the repayment reduces long-term liabilitie<
in the statement of net assets.
Principal payments
$ 1,041,722
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
$ 362,281
Net Pension Obligation over funded / (under funded;
$ 155,079
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,
$ 4,676,837
CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES
$ (2,697,405)
$ 17,883,311
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-8
2008 Comprehensive Annual Financial Report
City of Renton, Washington
STATEMENT OF NET ASSETS
3,978,159 $
PROPRIETARY FUNDS
12,948,026
December 31, 2008
808,643
Page 1 of 2
11,294,461
BUSINESS -TYPE ACTIVITIES
869,753
ENTERPRISE FUNDS
GOVERNMENTAL
OTHER
TOTAL ACTIVITIES
WATERWORKS ENTERPRISE
ENTERPRISE INTERNAL SERVICE
UTILITY SOLID WASTE FUNDS
FUNDS FUNDS
ASSETS
Current assets:
Cash & cash equivalents
Investments at fair value
Receivables (net of allowances):
Customer accounts
Special assessments - current
Interest - investments
Due from other funds
Due from other governmental units
Inventory of materials and supplies
Prepayments
Total current assets
Noncurrent assets:
Restricted Investments at fair value
Special assessments deferred
Capital assets (net)
Deferred charges and other assets
Total noncurrent assets
TOTAL ASSETS
$ 2,300,930 $
598,528 $
1,078,701 $
3,978,159 $
9,466,418
12,948,026
150,000
808,643
13,906,669
11,294,461
3,471,137
869,753
40,394
4,381,284
16,689
30,492
-
-
30,492
-
386,775
10,314
70,713
467,802
772,928
-
-
5,269
5,269
-
293,813
264,784
50,468
609,065
7,377
408,805
-
146,531
555,336
-
-
-
-
-
596,985
$ 19,839,978 $
1,893,379 $
2,200,719 $
23,934,076 $
22,154,858
-
-
441,358
441,358
-
65,700
-
65,700
-
234,518,291
19,084,008
253,602,299
11,574,644
756,945
31,163
788,108
-
$ 235,340,936 $
- $
19,556,529 $
254,897,465 $
11,574,644
$ 255,180,914 $
1,893,379 $
21,757,248 $
278,831,541 $
33,729,502
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-9
2008 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
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, 2008
Page 2 of 2
BUSINESS -TYPE ACTIVITIES
414,376
ENTERPRISE FUNDS
GOVERNMENTAL
OTHER TOTAL
ACTIVITIES
WATERWORKS ENTERPRISE ENTERPRISE
INTERNAL SERVICE
UTILITY SOLID WASTE FUNDS FUNDS
FUNDS
$ 278,638 $
414,376
$ 224,894
$ 917,908
$ 482,829
130,463
-
-
130,463
-
-
-
923
292,458
-
-
292,458
-
247,496
16,832
50,228
314,556
52,871
37,229
48,492
36,050
121,771
(405)
32,159
-
125,149
157,308
-
134,788
88,113
222,901
1,890,000
310,000
2,200,000
-
-
31,187
31,187
-
$ 3,043,231 $
479,700
$ 865,621
$ 4,388,552
$ 536,218
$ 38,910,000 $
-
$ 2,200,000
$ 41,110,000
$ -
675,662
-
675,662
(799,758)
-
(212,188)
(1,011,946)
-
503,083
23,359
89,874
616,316
923,930
-
-
-
-
2,926,675
-
23,993
23,993
-
9,171,235
-
-
9,171,235
-
$ 48,460,222 $
23,359
$ 2,101,679
$ 50,585,260
$ 3,850,605
$ 51,503,453 $
503,059
$ 2,967,300
$ 54,973,812
$ 4,386,823
$ 184,671,152 $
-
$ 16,762,203
$ 201,433,355
$ 11,574,644
3,730,167
-
3,730,167
-
-
-
441,358
441,358
-
15,276,142
1,390,320
1,586,387
18,252,849
17,768,035
$ 203,677,461 $
1,390,320
$ 18,789,948
$ 223,857,729
$ 29,342,679
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-10
2008 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, 2008
NON-OPERATING REVENUES(EXPENSES)
Intergovernmental revenues
$ - $
264,784
BUSINESS -TYPE ACTIVITIES
$ 264,784 $
19,675
Investment earnings
1,022,711
25,113
ENTERPRISE FUNDS
1,120,340
GOVERNMENTAL
Gain (loss) on sale of capital assets
(59,111)
-
(6,749)
OTHER
TOTAL
ACTIVITIES
18,876
1,190
WATERWORKS
35,785
ENTERPRISE
ENTERPRISE
INTERNAL SERVICE
-
(134,594)
UTILITY
SOLID WASTE
FUNDS
FUNDS
FUNDS
OPERATING REVENUES:
(130,225)
-
NON-OPERATING REVENUE NET OF EXPENSE
$ (1,280,162) $
291,087
$ (87,872)
Charges for services
$
30,328,794
$ 10,262,639
$ 3,349,095
$ 43,940,528
$ 11,178,965
Interdepartmental services
559,415
4,460
-
563,875
-
Other services
241,493
-
241,493
11,498,439
TOTAL OPERATING REVENUES
$
31,129,702
$ 10,267,099
$ 3,349,095
$ 44,745,896
$ 22,677,404
OPERATING EXPENSES:
Operations and maintenance
$
6,194,147
$ 1,306,373
$ 1,845,626
$ 9,346,146
$ 3,030,509
Benefit payments
1,529,215
113,734
419,684
2,062,633
12,242,087
Professional services
156,492
9,337,773
48,452
9,542,717
909,785
Administrative and general
13,253,116
137,965
716,990
14,108,071
2,044,990
Insurance
62,400
-
60,520
122,920
1,217,146
Taxes
2,571,067
622,202
129
3,193,398
-
Depreciation
6,709,291
807,971
7,517,262
517,357
TOTAL OPERATING EXPENSES
$
30,475,728
$ 11,518,047
$ 3,899,372
$ 45,893,147
$ 19,961,874
OPERATING INCOME (LOSS)
$
653,974
$ (1,250,948)
$ (550,277)
$ (1,147,251)
$ 2,715,530
NON-OPERATING REVENUES(EXPENSES)
Intergovernmental revenues
$ - $
264,784
$ -
$ 264,784 $
19,675
Investment earnings
1,022,711
25,113
72,516
1,120,340
748,261
Gain (loss) on sale of capital assets
(59,111)
-
(6,749)
(65,860)
45,045
Other non-operating revenues (expenses;
18,876
1,190
15,719
35,785
914,023
Interest expense
(2,167,177)
-
(134,594)
(2,301,771)
(22,700)
Amortization of debt discount and expense
(95,461)
-
(34,764)
(130,225)
-
NON-OPERATING REVENUE NET OF EXPENSE
$ (1,280,162) $
291,087
$ (87,872)
$ (1,076,947) $
1,704,304
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS
$ (626,188)
$ (959,861)
$ (638,149)
$ (2,224,198)
$ 4,419,834
Capital contributions
$ 6,731,040
$
$ 179,292
$ 6,910,332
$ -
Transfers in (out)
(110,000)
-
(110,000)
257,000
CHANGE IN NET ASSETS
$ 5,994,852
$ (959,861)
$ (458,857)
$ 4,576,134
$ 4,676,834
NET ASSETS, JANUARY 1
$ 188,479,068
$ 2,350,181
$ 19,248,805
$ 210,078,054
$ 24,665,845
Prior Year Adjustment
9,203,541
-
9,203,541
-
NET ASSETS, JANUARY 1 RESTATED
197,682,609
2,350,181
19,248,805
219,281,595
24,665,845
NET ASSETS, DECEMBER 31
$ 203,677,461
$ 1,390,320
$ 18,789,948
$ 223,857,729
$ 29,342,679
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-11
2008 Comprehensive Annual Financial Report
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2008
Page 1 of 2
City of Renton, Washington
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-12
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
$ 30,367,387 $
10,566,802 $
3,421,904
$ 44,356,093 $
22,693,578
Cash received from other funds for services
696,315
-
-
696,315
-
Cash paid to suppliers for goods & services
(22,512,091)
(12,499,433)
(2,595,575)
(37,607,099)
(3,138,836)
Cash paid to other funds for goods & services
(6,905)
(6,905)
Cash paid to employees
(1,377,182)
(105,971)
(407,348)
(1,890,501)
(12,137,918)
Other operating receipts
1,225,835
(38,684)
1,187,151
(3,690,911)
Other non-operating receipts
(40,235)
-
(125,624)
(165,859)
(232,432)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
$ 7,127,289 $ (812,767) $
254,673
$ 6,569,195 $
3,493,481
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds
$ (110,000) $
$
-
$ (110,000) $
(60,000)
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES
$ (110,000) $
$
$ (110,000) $
(60,000)
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets
$ (13,393,040) $
$
(294,994)
$ (13,688,034) $
(4,100,399)
Principal payments on debt
9,568,358
(310,000)
9,258,358
Interest payments on debt
(2,263,300)
3,098
(2,260,202)
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES
$ (6,087,982) $
$
(601,896)
$ (6,689,878) $
(4,100,399)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of investments
$ (3,835,500) $
$
$ (3,835,500) $
-
Payments for investments
-
502,379
502,379
3,440,726
Interest on investments
1,014,125
29,287
22,143
1,065,555
312,957
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES
$ (2,821,375) $
531,666 $
22,143
$ (2,267,566) $
3,753,683
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS
$ (1,892,068) $
(281,101) $
(325,080)
$ (2,498,249) $
3,086,765
CASH & CASH EQUIVALENTS, JANUARY 1
2,797,689
879,629
1,403,781
5,081,099
6,379,653
RESTRICTED CASH, JANUARY 1
1,395,309
-
-
1,395,309
-
CASH , RESTRICTED CASH ,& CASH
EQUIVALENTS, DECEMBER 31
$ 2,300,930 $
598,528 $
1,078,701
$ 3,978,159 $
9,466,418
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-12
2008 Comprehensive Annual Financial Report
City of Renton, Washington
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2008
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)
$
653,974
$ (1,250,948)
$ (550,277)
$ (1,147,251)
$
2,715,530
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization of
deferred charges
$
6,709,291
$ -
$ 807,971
$ 7,517,262
$
517,357
Other non-operating revenue
(40,235)
265,974
(125,624)
100,115
956,043
(Increase) decrease in
accounts receivable
(202,900)
299,703
18,552
115,355
16,174
(Increase) decrease in due from
other funds/governmental units
136,900
(121,301)
(38,684)
(23,085)
4,953
(Increase) decrease in inventory
& prepaid items
(57,412)
(54,463)
(111,875)
(221,159)
Increase (decrease) in vouchers
retainage payable
34,616
14,636
49,252
(816,928)
Increase (decrease) in due to
other funds/governmental units
(6,905)
-
(6,905)
Increase (decrease) in payables
& other short-term liabilities
(191,592)
(13,958)
114,636
(90,914)
(3,817)
Increase (decrease) in
customer deposits
12
12
Increase (decrease) in
deferred revenues
(60,481)
-
55,578
(4,903)
-
Increase (decrease) in accrued
employee leave benefits
152,033
7,763
12,336
172,132
325,328
Total adjustments
$
6,473,315
$ 438,181
$ 804,950
$ 7,716,446
$
777,951
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
$
7,127,289
$ (812,767)
$ 254,673
$ 6,569,195
$
3,493,481
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Prior Period Adjustment
9,203,541
-
9,203,541
-
Contributions of capital assets
6,731,040
179,292
6,910,332
Net amort. bond prem. discount & bond issue costs
95,461
34,764
130,225
-
Depreciation
6,709,291
807,971
7,517,262
517,357
The notes to the financial statements are an integralpart of this statement. Basic Financial Statements, 4-13
2008 Comprehensive Annual Financial Report
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
December 31, 2008
ASSETS
Cash & cash equivalents
Investments at fair value:
Federal National Mortgage Association
US Treasury Strips
Receivables (net of allowances)
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
$ 1,182,339
$ 840,466
134,821
-
4,744,087
2,879,530
-
$ 8,940,777
$ 840,466
$ -
$ 31,935
808,531
$
$ 840,466
$ 8,940,777 $
City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-14
2008 Comprehensive Annual Financial Report
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIREMEN'S PENSION FUND
For the Year Ended December 31, 2008
PENSION TRUST
FIREMEN'S
PENSION
ADDITIONS:
Other contributions:
Fire insurance premiums transferred in $ 85,950
Investment income
Investment earnings 1,218,067
TOTAL ADDITIONS $ 1,304,017
DEDUCTIONS:
Benefit payments
Medical benefit payments
Administrative and general
TOTAL DEDUCTIONS
NETINCREASE(DECREASE)
NET ASSETS - JANUARY 1
NET ASSETS - DECEMBER 31
$ 512,263
9,573
10,321
$ 532,157
$ 771,860
$ 8,168,917
$ 8,940,777
City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-15
2008 Comprehensive Annual Financial Report
NOTES TO THE FINANCIAL STATEMENTS
January 1, 2008 through December 31, 2008
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
City of Renton, Washington
The City of Renton was incorporated on September 6, 1901, and operates under the laws of the
State of Washington applicable to a Non -Charter code city with a Mayor/Council form of
government. A full-time Mayor and seven part-time Council members serve the City, all elected
at large to four-year terms. The City provides the full range of municipal services authorized by
state statues, together with a Municipal Airport, a Waterworks Utility, a Solid Waste Utility, and
a Municipal Golf Course.
The accounting and reporting policies of the City related to the funds included in the
accompanying financial statements conform to generally accepted accounting principles (GAAP)
applicable to state and local governments. GAAP for local governments include those principles
prescribed by the Governmental Accounting Standards Board (GASB), the Financial Accounting
Standards Board (FASB), when applicable, and the American Institute of Certified Public
Accountants (AICPA) pronouncements that have been made applicable by GASB Statements or
Interpretations.
In accordance with GASB Statement 20 the City has not applied to its enterprise activities FASB
Statements and Interpretations, Accounting Principles Board opinions, and Accounting Research
Bulletins of the Committee of Accounting Procedure issued after November 30, 1989.
The City had implemented all applicable GASB Statements through Statement No. 53, with the
exception of GASB Statement No. 51. The City is required to implement Statement No. 51:
Accounting and Financial Reporting for Intangible Assets by 2010. All other applicable
statements were implemented prior to 2008.
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 thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-16
2008 Comprehensive Annual Financial Report City of Renton, Washington
During 2008 the City of Renton annexed several communities that were identified as Potential
Annexation Areas (PAA). These annexations increased the City's capital assets by
$110,945,752. See Capital Assets and Depreciation (Note 5) for details.
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.
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.
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
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-17
2008 Comprehensive Annual Financial Report City of Renton, Washington
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
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 following describes each fund as presented in the fund financial statements.
MAJOR FUNDS
GOVERNMENTAL FUNDS
GENERAL FUND
The General Fund is the primary operating fund of the City. It is used to account for the
resources and disbursements of ordinary City operations that are not required to be accounted for
in another fund. These include the costs of 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.
CAPITAL INVESTMENT 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.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-18
2008 Comprehensive Annual Financial Report
ENTERPRISE FUNDS
. 1 ti NMN 0 1 WW4
City of Renton, Washington
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
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.
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.
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.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-19
2008 Comprehensive Annual Financial Report City of Renton, Washington
CABLE COMMUNICATIONS DEVELOPMENT FUND
The Cable Communications Development Fund accounts for funding for promotion and
development of cable communications as established by City ordinance.
DEBT SERVICE FUNDS
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.
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.
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.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-20
2008 Comprehensive Annual Financial Report
ENTERPRISE FUNDS
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 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 thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-21
2008 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 fiends 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
is prorated to the applicable funds. Included in this category are all funds invested in the Local
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-22
2008 Comprehensive Annual Financial Report City of Renton, Washington
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 lendingiborrowing 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 is the unamortized portion of the excess of bonds proceeds over their face
value (excluding accrued interest and issuance costs).
Deferred Amount -Refunding is 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 thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-23
2008 Comprehensive Annual Financial Report
City of Renton, Washington
4. Inventories and prepaid items
All City inventories are maintained on a consumption basis of accounting where items are
purchased for inventory and charged to the budgetary accounts as the items are consumed. Any
material inventories at year-end are included in the balance sheet of the appropriate fund.
Inventories are carried at cost on the first in, first out — FIFO basis. Certain payments to vendors
reflect costs applicable to future accounting periods and are reported as prepaid items in both the
Government -wide and fund statements.
5. Capital Assets and Depreciation (refer to Note 5).
6. Deferred Revenues
This account includes amounts recognized as receivables but not revenues in the governmental
funds because the revenue recognition criterion has not been met.
7. Custodial Accounts
This account reflects the liability for net monetary assets being held by the City in its agency
capacity.
8. Compensated Absences
The City accrues accumulated unpaid vacation and other leave and associated employee -related
costs when earned (or estimated to be earned) by the employee. The non-current portion (the
amount estimated to be used in subsequent fiscal years) for governmental funds is maintained
separately and represents a reconciling item between the fund and Government -wide
presentations.
9. Fund Balance Designations and Reservations
In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for appropriation or are legally restricted by outside parties for use
for a specific purpose. Designations of fund balance represent tentative management plans that
are subject to change. The City has the following reserved or designated fund balances.
Fund Reserved Purpose of Reservation Amount
General Fund Prepaid Postage $ 8,000
Municipal Facilities Interfund loan receivable 1,000,000
CIP
TOTAL $ 1,008,000
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-24
2008 Comprehensive Annual Financial Report City of Renton, Washington
Fund Designated Purpose of Designation Amount Totals
General Fund Operating cash reserves $6,184,384
General Fund Operating reserves for Community 1,060,647
Services
General Fund
Operating reserves for Streets
805,407
General Fund
Designated for CDBG projects
44,981
General Fund
Operating reserves for
Library/Museum
202,721
General Fund
Designated for Farmers Market
53,632
General fund
Designated for Fire Memorial
55,852
General Fund
Designated for Fire Wellness
34,153
General Fund
Designated for Park Memorial
173,453 $8,615,230
Arterial Street Fund
Construction and improvements of
552,576
streets
Leased City Properties Fund Leased Property 1,239,206
Hotel/Motel Tax Fund Increase Tourism 321,093
Paths and Trails Fund Acquisition and maintenance of paths 3,243
and trails
1% For Art Fund Funding for art projects 121,678
Cable Communications Development Fund Promotion and development of cable 112,369
communications
Springbrook Wetlands Bank
Sale of Wetland Credits
456,502 2,806,667
General Governmental Miscellaneous Debt
Parking Garage Construction
673,529
Service
1989 Unlimited General Obligation Bond
Low income housing
597,407 1,270,936
Redemption Fund
Community Development Impact
Offset impact created by new
1,688,926
Mitigation Fund
development
Fire Impact Mitigation Fund
Offset impact created by new
2,483,647
Transportation Mitigation Fund
Offset impact created by new
3,576,947
Municipal Facilities Fund Acquisition and development of City 12,774,100
facilities
Capital Improvement Fund City infrastructure 8,491,406
South Lake Washington 202,358 29,217,384
TOTAL $41,910,217 $41,910,217
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.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-25
2008 Comprehensive Annual Financial Report City of Renton, Washington
E. REVENUES, EXPENDITURES, AND EXPENSES
1. Program Revenues
Program revenues include charges for services to customers for goods and services provided,
operating grants and contributions, and non-operating grants and contributions within the
Government -wide Statement of Activities. Charges for services include business licenses,
construction permits, and weapon permits.
2. General Revenues
Property taxes, timber taxes, retail taxes, business taxes, excise taxes, and associated penalties
and interest, and interest and investment earnings are classified as general revenues within the
Government -wide Statement of Activities.
3. Interfund Transfers
Permanent reallocation of resources between funds of the reporting entity are classified as
interfund transfers. For purposes of the Government -wide Statement of Activities, all interfund
transfers between individual governmental funds have been eliminated.
4. Expenditures/Expenses
Expenses in the Government -wide Statement of Activities are reported by function as a
governmental activity (general government, judicial, security of persons and property, physical
environment, transportation, economic environment, culture and recreation, or interest on long-
term debt) or business -type activity (waterworks utility, airport, solid waste utility, or golf
course). In the fund financial statements, expenditures of governmental funds are classified by:
function, debt service 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.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-26
2008 Comprehensive Annual Financial Report City of Renton, Washington
A. PROCEDURES FOR ADOPTING THE ORIGINAL BUDGET
The City of Renton's budget procedures are mandated by the Chapter 35A.33 of the Revised
Code of Washington (RCW). The steps in the budget process are as follows:
1. Prior to November 1, the Mayor submits a proposed budget to the City Council. This budget
is based on priorities established by the Council; estimates provided by the City departments
during the preceding months; balanced by revenue estimates made by the Mayor.
2. The City Council conducts public hearings on the proposed budget in November and
December.
3. The Council makes their adjustments to the proposed budget and adopts, by ordinance, a
final balanced budget no later than December 31.
4. The final operating budget, as adopted, is published and distributed within the first four
months of the following year.
B. AMENDING THE BUDGET
The budget, as adopted, constitutes the legal authority for expenditures. Budgets are adopted on
the 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 twenty-seven times during 2008.
Original budgeted inflows as compared to the final budgeted inflows are as follows:
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-27
Increase
Original
Final
(Decrease)
Budgeted
Budgeted
Budgeted
Fund
Inflows
Inflows
Inflows
General Fund
$90,046,254
$94,206,787
$4,160,533
Arterial Street Fund
585,000
585,000
-
Leased City Properties Fund
1,237,703
1,237,703
-
Hotel/Motel Tax Fund
307,000
307,000
-
1% for Art Fund
77,505
77,505
-
Cable Communications Development Fund
38,900
38,900
-
General Government Miscellaneous Debt Service Fund
4,269,400
4,269,400
-
1989 UGO Bond Redemption Fund
555,000
555,000
-
Community Development Impact Mitigation Fund
255,000
255,000
-
Fire Impact Mitigation Fund
540,000
540,000
-
Transportation Impact Mitigation Fund
750,000
750,000
-
Municipal Facilities Construction Fund
3,679,723
6,413,418
2,733,695
General Government Capital Investment Program Fund
27,235,324
43,565,800
16,330,476
South Lake Washington Infrastructure Project Fund
-
3,321,211
3,321,211
Airport Fund
2,708,713
2,708,713
-
Solid Waste Utility Fund
10,097,267
10,097,267
-
Golf Course Fund
2,681,420
2,681,420
-
Waterworks Utility Fund
36,867,722
62,928,116
26,060,394
Equipment Repair and Replacement / IS / Facilities Fund
11,285,713
10,735,713
(550,000)
Insurance Fund
13,883,116
13,883,116
-
TOTAL
$207,100,760
$259,157,069
$52,056,309
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-27
2008 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
$90,822,783
$96,560,335
$5,737,552
Arterial Street Fund
585,000
585,000
-
Leased City Properties Fund
1,146,836
1,181,680
34,844
Hotel/Motel Tax Fund
267,000
347,000
80,000
1% for Art Fund
77,505
141,698
64,193
Cable Communications Development Fund
74,778
88,004
13,226
General Government Miscellaneous Debt Service Fund
4,269,400
4,269,400
-
1989 UGO Bond Redemption Fund
548,750
548,750
-
Community Development Impact Mitigation Fund
-
111,875
111,875
Fire Impact Mitigation Fund
300,000
300,000
-
Transportation Impact Mitigation Fund
1,873,229
5,300,000
3,426,771
Municipal Facilities Construction Fund
13,708,000
19,057,785
5,349,785
General Government Capital Investment Program Fund
29,928,671
46,428,715
16,500,044
South Lake Washington Infrastructure Project Fund
50,000
2,296,000
2,246,000
Airport Fund
3,258,192
4,213,971
955,779
Solid Waste Utility Fund
11,184,614
11,279,614
95,000
Golf Course Fund
2,738,431
2,885,721
147,290
Waterworks Utility Fund
47,496,939
70,885,454
23,388,515
Equipment Repair and Replacement / IS / Facilities Fund
11,939,283
13,734,966
1,795,683
Insurance Fund
13,861,706
13,921,706
60,000
TOTAL
$234,131,117
$294,137,674
$60,006,557
At year-end 2008, the City of Renton noted the Solid Waste Utility Fund exceeded its final
adopted budget by approximately $238,433.
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 thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-28
2008 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 20 -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, 2008, the City of Renton had the following investments:
Reconciliation of Cash and Investments to Statements of Net Assets
Primary
Weighted Average
Government
Fiduciary Funds
Maturity
Security Type
Cost
Fair Value
(in years)
US Agencies
$14,049,463
$14,177,850
0.2544
Certificates of Deposit (within WPDPC)
33,044,882
33,044,882
0.4016
Local Governmental Investment Pool (LGIP)
13,480,100
13,480,100
0.0008
TOTAL
$60,574,445
$60,702,832
0.6567
Fireman's Pension Portion ofLGIP excluded from above
454,767
454,767
$ 2,022,805
Total LGIP reported as Cash & Cash Equivalents in Statement of Net Assets
13,934,867
13,934,867
Total Investments
$61,029,211
$61,157,599
Reconciliation of Cash and Investments to Statements of Net Assets
Primary
Government
Fiduciary Funds
Statement of Net
Statement of Net
Assets
Assets
Variance
Total
Note (plus Cash)
Cash $ 14,038,726
$ 1,568,038
$ 180
$ 15,606,944
$ 15,606,944
Cash Equivalents $ 13,480,100
$ 454,767
$ -
$ 13,934,867
$ 13,934,867
Total Cash $ 27,518,826
$ 2,022,805
$ 180
$ 29,541,811
$ 29,541,811
Investments $ 46,782,579 $ - $ - $ 46,782,579 $ 14,177,850
Restricted investments $ 440,153 $ - $ - $ 440,153 $ 33,044,882
Total Investments $ 47,222,732 $ - $ - $ 47,222,732 $ 47,222,732
Grand Total $ 74,741,558 $ 2,022,805 $ 180 $ 76,764,543 $ 76,764,543
Items in bold may be found in "Security Types "table, above
Fair Value Total. $ 60,702,832
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-29
2008 Comprehensive Annual Financial Report City of Renton, Washington
Credit risk. Credit Risk is the risk that an issuer or other counterparty 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 $250,000 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
$7,006,580
Aaa
AAA
Federal Home Loan Bank
2,019,368
2,043,120
Aaa
AAA
Federal Farm Credit Bank
4,997,650
5,128,150
Aaa
AAA
Local Governmental Investment Pool (LGIP)
7,738,375
7,738,375
unrated
unrated
Municipal Investor Account (MIA)
5,741,725
5,741,725
unrated
unrated
Certificates of Deposit (within WPDPC)
33,044,882
33,044,882
unrated
unrated
TOTAL
$60,574,445
$60,702,832
The City's Investment Policy directs that the standard of prudence for investment activities shall
be the Prudent Investor Standard that states: "Investments shall be made with judgment and
care, under circumstances then prevailing, which person of prudence, discretion, and intelligence
would use in the management of their own affairs, not for speculation, but for investment
purposes, considering the probable safety of their capital as well as the probable income to be
derived."
Custodial credit risk. Custodial credit risk for investments is the risk that, in the event of the
failure of the counter party to a transaction, a government will not be able to recover the value
of investment or collateral securities that are in the possession of an outside party. All security
transactions, including collateral for repurchase agreements, entered into by the City are
conducted on a delivery -versus -payment (DVP) basis. Securities held by a third -party custodian
are designated by the City's Finance and Information Services Administrator. Certificates of
Deposit are delivered to and held by the Finance Division.
Concentration of credit risk. Concentration of credit risk is the risk of loss attributed to the
magnitude of a government's investment in a single issuer. The City diversifies its investment
instruments to avoid incurring unreasonable risk inherent 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%
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-30
2008 Comprehensive Annual Financial Report City of Renton, Washington
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
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
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-31
0-6
6 months —
1-3 3+
Security Type
months
1 year
years years
Totals
US Agencies
$ -
$4,997,650
$9,051,813 $ -
$14,049,463
Certificates of Deposit (within WPDPC)
17,000,000
7,044,882
9,000,000 -
33,044,882
Local Governmental Investment Pool
13,480,100
-
- -
13,480,100
(LGIP)
TOTAL
$30,480,100
$12,042,532
$18,051,813 $ -
$60,574,445
NOTE 4. PROPERTY TAXES
The King County Finance Director acts as an agent to collect property taxes levied in the county
for all taxing authorities. Taxes are levied annually, January 1, on property value listed as of the
prior August 31. Assessed values are established by the King County Assessor at 100 percent of
fair market value. A revaluation of all property is required every two years; however, King
County has the ability to revalue annually.
Property taxes levied by the King County Assessor and collected by the King County Finance
Director become a lien on the first day of the levy year and may be paid in two equal
installments if the total amount exceeds $30. The first half of real property taxes is due on April
30 and the balance is due October 31. Delinquent taxes bear interest at the rate of 12 percent and
are subject to additional penalties if not paid as scheduled. No allowance for uncollectible taxes
is established because delinquent taxes are considered fully collectible.
At year-end, property taxes are recorded as a receivable with the portion not expected to be
collected within 60 days offset by deferred revenue. During the year, property tax revenues are
recognized when cash is received.
The tax rate for general City operations is limited to $3.375 per $1,000 of assessed value (RCW
84.52.043). Of this amount, up to .45 cents per thousand dollars may be designated for
contribution to the Firemen's Pension Fund. If a report by a qualified actuary on the condition of
the Firemen's Pension Fund establishes that this amount (or portion of) is not necessary to
maintain the actuarial soundness of the fund, the amount can be used for any other municipal
purpose (RCW 41.16.060).
The tax rate limit may be reduced for any of the following reasons:
1. The Levy Limit: the levy limit calculation applies to a taxing district's budget, and not to
increases in the assessed value or tax bill of individual properties. Initiative 747 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
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-31
2008 Comprehensive Annual Financial Report
City of Renton, Washington
voters are not included in the levy limit calculation. If the assessed valuation increases by
more than one percent due to revaluation, the levy rate will be decreased.
2. The One Percent Constitution Limit: The Washington State Constitution limits the regular
(non -voted) combined property tax rate applied to an individual's property to one percent
($10 per $1,000) on the market valuation. Voters may approve special levies that are added
to this figure. If the taxes of all districts exceed this amount, each is proportionately reduced
until the total is at or below the one percent limit.
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations. There is currently
no excess levy for General Obligation Bond debt. The City's regular levy per the King County
Assessor's 2009 Annual Report is $2.36923.
NOTE 5. CAPITAL ASSETS AND DEPRECIATION
A. GENERAL POLICES
Major expenditures for capital assets, including capital leases and major repairs that increase the
useful life, are capitalized. The capitalization threshold applied to the City's assets is $5,000.
Maintenance, repairs, and minor renewals are accounted for as expenditures or expenses when
incurred.
All capital assets are valued at historical cost (or estimated cost, where historical cost is not
known/or estimated market value for donated assets/or the 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. Any gain on the sale of capital
assets is recorded in the Statement of Activities as General revenues, Miscellaneous.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-32
2008 Comprehensive Annual Financial Report
City of Renton, Washington
C. PROPRIETARY FUND CAPITAL ASSETS
Capital assets of proprietary funds are capitalized in their respective statement of net assets, net
of depreciation. Any gain on the sale of capital assets is recorded in the Statement of Activities
as General revenues, Miscellaneous.
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 10-50 years
Other improvements 10-80 years
Utility plant 25-75 years
Machinery and equipment 3-40 years
Infrastructure 25-50 years
Depreciation Expense was charged to governmental and business -type activities as follows:
Governmental Activities
Amount
General government
$2,317,396
Judicial
-
Security of persons and property
755,905
Physical environment
9,588
Transportation
3,663,590
Economic development
47,540
Culture and recreation
1,398,149
Health and human services
308,607
Fleet
452,065
TOTAL Governmental Activities Depreciation Expense
$8,952,840
Business -type Activities
Amount
Waterworks $6,709,291
Airport 470,301
Solid waste -
Golf course 337,670
TOTAL Business -type Activities Depreciation Expense $7,517,262
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-33
2008 Comprehensive Annual Financial Report
E. SUMMARY OF CHANGES
Description Beginning Reclassification Additions for
Balance Adjustments Change in
during System Reporting
Conversion Entity
City of Renton, Washington
Adjusted Increases Decreases Ending
Beginning Adjustments Balance
Balance
GOVERNMENTAL
ACTIVITIES
Capital assets not
being depreciated:
Land and land $ 88,947,494 $ $ 84,439,578 $173,387,072 $2,172,848 $ - $175,559,920
improvements
Construction in progress 41,893,039 - 41,893,039 18,495,058 30,475,600 29,912,497
TOTAL capital not being $130,840,533 $ - $ 84,439,578 $215,280,111 $20,667,906 $30,475,600 $205,472,417
Other capital assets:
$274,001,613
$ -
$105,331,637
$379,333,250
$48,409,125
$30,475,600
$397,266,775
Buildings and structures
$74,351,604
($2,976,098)
$ -
$71,375,506
$1,222,187
$
$72,597,693
Other improvements
116,506,866
2,701,281
20,891,389
140,099,536
29,784,300
169,883,836
Machinery and equipment
29,106,354
274,817
-
29,381,171
5,687,572
35,068,743
TOTAL other capital
$219,964,824
$
$ 20,891,389
$240,856,213
$36,694,059
$
- $277,550,272
assets at capitalized cost
Less accumulated
depreciation for:
$ 6,976,321
$
$
$ 6,976,321
$ -
$ -
$ 6,976,321
Buildings and structures
$21,994,722
$121,677
$
$22,116,399
$1,885,079
$
$ 24,001,478
Other improvements
37,930,725
-210,867
37,719,858
5,095,801
2,149,014
42,815,659
Machinery and equipment
16,878,297
89,190
-670
16,966,817
1,971,960
$2,149,014
18,938,777
TOTAL accumulated
$76,803,744
$ -
$ -670
$ 76,803,074
$ 8,952,840
$
- $ 85,755,914
Governmental activities
$274,001,613
$ -
$105,331,637
$379,333,250
$48,409,125
$30,475,600
$397,266,775
capital assets, net of
depreciation
BUSINESS -TYPE
ACTIVITIES
Capital assets not being
depreciated:
Land and land
$ 6,976,321
$
$
$ 6,976,321
$ -
$ -
$ 6,976,321
improvements
Construction in progress
5,699,290
5,699,290
6,464,495
2,149,014
10,014,741
TOTAL capital assets not
$12,675,611
$ -
$ -
$12,675,611
$ 6,464,465
$2,149,014
$16,9919062
being depreciated
Other capital assets
Buildings and structures
$15,032,621
$ 1,044,463
$-
$ 16,077,084
$ 727,971
$ -
$ 16,805,055
Other improvements
280,522,813
-1,044,463
8,151,248
287,629,598
19,456,835
326,795
306,759,638
Machinery and equipment
5,938,255
-
5,938,255
58,912
6,746
5,990,421
TOTAL other capital
$30
$ -
$8,151,248
$309,644,937
$20,243,718
$333,541
$329,555,114
assets at capitalized cost
1,493,689
Less accumulated
depreciation for:
Buildings and structures
$4,233,610
$18,512
$40
$4,252,082
$422,533
$
$4,674,615
Other improvements
73,558,825
-18,512
2,537,173
76,077,486
6,966,944
83,044,430
Machinery and equipment
5,059,209
-
-
5,059,209
165,622
5,224,831
TOTAL accumulated
$82,851,644
$ -
$2,537,133
$85,388,777
$7,555,099
$ -
$92,943,876
depreciation
Business -type capital
$231,317,656
$ -
$5,614,115
$236,931,771
$19,6469576
$2,976,047
$253,602,300
assets, net of deureciation
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-34
2008 Comprehensive Annual Financial Report City of Renton, Washington
At the end of 2008, 50 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, 2008, 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, P.O. 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 Statements No. 27, Accounting for
Pensions by State and Local Government Employers and No. 50, Pension Disclosures, an
Amendment of GASB Statements No. 25 and No. 27.
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 thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-35
Estimated
Future
Cost to
Remaining
Estimated
Funding
Fund — Funding Source
Date
Cost
Total Cost
Required
Waterworks — charges for services
$9,031,341
62,210,000
71,241,341
None
Airport — charges for services
805,389
11,730,000
12,535,389
None
General governmental — taxes, charges for
69,360,223
190,513,335
259,873,558
None
services, grants
Golf course — charges for services
51,202
2,272,000
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, P.O. 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 Statements No. 27, Accounting for
Pensions by State and Local Government Employers and No. 50, Pension Disclosures, an
Amendment of GASB Statements No. 25 and No. 27.
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 thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-35
2008 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. Notwithstanding, PERS
Plan 2 and Plan 3 members may opt out of plan membership if terminally ill, with less than five
years to live.
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.
PERS Plan 1 members are vested after the completion of 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 two percent of the
average final compensation (AFC) per year of service, capped at 60 percent. (The AFC is based
on the greatest compensation during any 24 eligible consecutive compensation months.) Plan 1
members who retire 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 that provides an automatic annual adjustment based on the Consumer
Price Index. To offset the cost of this annual adjustment, the benefit is reduced.
PERS Plan 2 members are vested after completion of five years of eligible service. Plan 2
members may retire at age 65 with five years of service with an allowance of two percent of the
AFC per year of service. (The AFC is based on the greatest compensation during any eligible
consecutive 60 -month period.) Plan 2 members who retire prior to the age of 65 receive reduced
benefits. If retirement is at 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. 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 (based on the Consumer Price Index), capped at three percent
annually.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-36
2008 Comprehensive Annual Financial Report City of Renton, Washington
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 AFC per year of service. (The AFC is
based on the greatest compensation during any eligible consecutive 60 -month period.) Effective
June 7, 2006, Plan 3 members are vested in the defined benefit portion of their plan after ten
years of service; or after five years if twelve months 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. Plan 3 members who
retire 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 were given
the choice to participate in the Judicial Benefit Program (JBM). Justices and 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% multiplier. The benefit would be capped at 75% of AFC. Judges
in PERS Plan 3 can elect a 1.6% of pay per year of service benefit, capped at 37.5% 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, be subject to the benefit cap of 75% of AFC, pay higher
contributions, stop contributing 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.
Newly elected or appointed justices and judges who chose to become PERS members on or after
January 1, 2007, or who have not previously opted into PERS membership, were required to
participate in the JBM Program. Members required into the JBM program would: return to prior
PERS Plan if membership had 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 JRA; and not have the option to increase the multiplier for past judicial
service.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-37
2008 Comprehensive Annual Financial Report City of Renton, Washington
Membership in PERS consisted of the following as of the latest actuarial valuation date for the
plans of June 30, 2007:
Retirees and beneficiaries receiving benefits 71,244
Terminated plan members entitled to but not yet receiving benefits 26,583
Active plan members vested 105,447
Active plan members non -vested 52,575
TOTAL 255,849
There are 2,310 participating employers in PERS as of June 30, 2008.
Funding Policy
Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates,
Plan 2 employer and employee contributions rates, and Plan 3 employer contribution rates.
Employee contribution rates for Plan 1 are established by statute at 6 percent for state agencies
and local government unit employees, and 7.5 percent for state government elected 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. As a result of the implementation of the Judicial Benefit Multiplier Program in
January 2007, a second tier of employer and employee rates was developed to fund, along with
investment earnings, the increased retirement benefits of those justices and judges that
participate in the program. 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, 2008, were as follows:
Members not participating in JBM:
Contributor PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer* 8.31%** 8.31%** 8.31***
Employee 6.00%**** 5.45%**** *****
* The employer rates include the employer administrative
expense fee currently at 0.16%.
** The employer rate for state elected officials is 12.39% for
Plan 1 and 8.31 % for Plan 2 & 3.
*** Plan 3 defined benefit portion only.
**** The employee rate for state elected officials in 7.5% for
Plan 1 and 5.45% for Plan 2.
***** Variable from 5.0% minimum to 15.0% maximum based
on rate selected by the PERS 3 member.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-38
2008 Comprehensive Annual Financial Report
Members participating in JBM:
City of Renton, Washington
Contributor PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer -State Agency* 10.81% 10.81% 10.81%**
Employer -Local Govt.* 8.31% 8.31% 8.31**
Employee -State Agency 9.76% 11.13% 7.50%***
Employee -Local Govt. 12.26% 13.63% 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
2008 $75,956 $1,692,603 $287,302
2007 $85,411 $1,229,641 $196,584
2006 $50,609 $616,903 $92,216
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, firefighters
and as of July 24, 2005, those emergency medical technicians who were given the option and
chose LEOFF Plan 2 membership. LEOFF membership is comprised primarily of non -state
employees, with the Department of Fish and Wildlife enforcement officers, who were first
included prospectively effective July 27, 2003, being an exception.
Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established by Initiative 790 to
provide governance of LEOFF Plan 2. The Board's duties include adopting contribution rates
and recommending policy changes to the Legislature for the LEOFF Plan 2 retirement plan.
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.
LEOFF Plan 1 members are vested after the completion of five years of eligible service. Plan 1
members are eligible for retirement with five years of service at the age of 50. The benefit per
year of service calculated as a percent of final average salary (FAS) is as follows:
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 notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-39
2008 Comprehensive Annual Financial Report City of Renton, Washington
The FAS 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. A
cost -of -living allowance is granted (indexed to the Consumer Price Index).
LEOFF Plan 2 members 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 FAS per year of service. The FAS is based on
the highest consecutive 60 months. Plan 2 members who prior to age 53 receive reduced
benefits. Benefits 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 service credit; and a cost -of -living allowance is granted (indexed to the Consumer
Price Index), capped at three percent annually.
Membership in LEOFF consisted of the following as of the latest actuarial valuation date for the
plans of June 30, 2007:
Retirees and beneficiaries receiving benefits 9,085
Terminated plan members entitled to but not yet receiving benefits 633
Active plan members vested 12,904
Active plan members non -vested 3,708
TOTAL 26,330
There are 461 participating employers in LEOFF as of June 30, 2008.
Funding PP licy
Starting on July 1, 2000, LEOFF 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. LEOFF 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, 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 LEOFF 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, 2008, were as follows:
Contributor LEOFF Plan 1 LEOFF Plan 2
Employer* .16% 5.46%**
Employee .00% 8.83%
State N/A 3.53%
* The employer rates include the employer
administration expense fee currently at .16%.
** The employer rate for ports and universities is 8.99%.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-40
2008 Comprehensive Annual Financial Report City of Renton, Washington
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
2008 $1,348
$1,200,963
2007 $1,676
$891,932
2006 $2,050
$716,583
Public Safety Employee's Retirement SystemPSERS. Plan 2
Plan Description
PSERS is a cost-sharing multiple -employer retirement system comprised of a single defined
benefit plan, PSERS Plan 2. PSERS was created by the 2004 legislature and became effective
July 1, 2006.
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 least 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 statue 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
ten years of PSERS service credit, with an allowance of two percent of the average final
compensation (AFC) per year of service. The AFC 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
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-41
2008 Comprehensive Annual Financial Report City of Renton, Washington
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 (based on the
Consumer Price Index), capped at three percent annually.
Membership is PSERS consisted of the following as of the latest actuarial valuation date for the
plan of June 30, 2007:
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 2,755
TOTAL 2,755
There are 71 participating employers in PSERS as of June 30, 2008.
Funding Pqlicy
Each biennium, the state Pension Funding Council adopts PSERS 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, 2008 were as follows:
Contributor PSERS Plan 2
Employer* 9.43%
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
2008
$63,747
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
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-42
2008 Comprehensive Annual Financial Report City of Renton, Washington
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, 2008, there were 40
members in the System:
Retirees and beneficiaries receiving benefits 38
Retirees and beneficiaries currently receiving full retirement through LEOFF 2
Active plan members vested 0
Active Dlan members non -vested 0
TOTAL 40
Funding Pqlicy
Under state law, the Firefighter's Pension Plan is provided an allocation of all monies received
by the state from taxes on fire insurance premiums; interest earnings; member contributions
made prior to the inception of LEOFF; and City contributions required to meet projected future
pension obligations. Costs of administering the Firefighter's Pension Plan are paid by the Plan.
For 2008, this cost was $10,321.
An actuarial valuation is done every two years and was completed as of January 1, 2009. 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, 2009, valuation include:
Valuation date: January 1, 2009
Actuarial cost method: entry age normal
Amortization method: 30 -year, closed as of January 1, 2000
Remaining amortization period: 21 years
Asset valuation method: fair value
Actuarial assumptions: 1) investment rate of return — 4%; 2) projected salary increases — 3.5%;
3) inflation — 2.5%; and, 4) cost -of -living adjustments — based upon salary increase assumption
for FPF benefits, inflation assumption for LEOFF benefits.
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-43
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%
-
-
2003
9,189
6,472
(2,717)
142%
-
-
2005
7,777
6,254
*(1,523)
124%
-
-
2007
7,847
6,364
(1,483)
123%
-
-
* 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, 2009, valuation include:
Valuation date: January 1, 2009
Actuarial cost method: entry age normal
Amortization method: 30 -year, closed as of January 1, 2000
Remaining amortization period: 21 years
Asset valuation method: fair value
Actuarial assumptions: 1) investment rate of return — 4%; 2) projected salary increases — 3.5%;
3) inflation — 2.5%; and, 4) cost -of -living adjustments — based upon salary increase assumption
for FPF benefits, inflation assumption for LEOFF benefits.
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-43
2008 Comprehensive Annual Financial Report City of Renton, Washington
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, 2009, assuming the UAAL is amortized over a closed
30 -year period beginning January 1, 2000.
Fiscal Year Fiscal Year Fiscal Year
Annual required contribution (ARC)
Ending
12/31/2006
Ending
12/31/2007
Ending
12/31/2008
Annual normal cost (BOY)
Amortization of UAAL (BOY)
Interest to end of year (EOY)*
$ -
(107,622)
(5,919)
$ -
(104,731)
(5,237)
$ -
(104,731)
(5,237)
ARC at EOY
($113,541)
($109,968)
($109,968)
Interest on NPO
Adjustment to ARC
($33,604)
(44,035)
($38,658)
(54,591)
($46,349)
(67,070)
Annual pension cost (APC)
($103,110)
($94,035)
($89,247)
Employer contributions**
Change in NPO
$59,068
(162,178)
$59,777
(153,812)
$66,055
(155,302)
NPO at BOY prior year
($610,988)
($773,166)
($926,978)
NPO at EOY
($773,166)
($926,978)
($1,082,280)
* Assumed interest rate: 5.5% in 2006 and 5.0% in 2007and 2008.
** 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
$(179,836)
$ (63,088)
14.0032
Annual
Total
Change
Ending
ARC @
Interest on
ARC
Pension
Employer
in
12/31
EOY
NPO
Adjustment
Cost (APC)
Contributions
NPO
2003
$ -
$ (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)
2008
(109,968)
(46,349)
(67,070)
(89,247)
66,055
(155,302)
Fiscal Year
Ending
December NPO
31 Balance
(Gain)/ Amort.
Loss Factor**
Amort.
of
(Gain)/ Ending
Loss Balance
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)
2008
(1,082,280
(176,023)
13.8212
(67,070)
(1,082,280)
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-44
2008 Comprehensive Annual Financial Report City of Renton, Washington
Three year trend information is recapped as follows:
Employees are not required to make contributions. The contributions to the System for 2008
include $85,949 from fire insurance premiums and $1,218,067 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 2008, $512,263 was paid for benefit payments and
$9,573 for medical payments.
The Net Pension Obligation moves from ($926,978) to ($1,082,280) and is included, as a non-
current asset, in the City of Renton's Governmental -wide Statement of Net Assets.
NOTE 7. OTHER POST EMPLOYMENT BENEFITS
Plan Description
As required by the Revised Code of Washington (RCW) Chapter 41.26, the City provides
lifetime medical care for members of the Law Enforcement Officers and Firefighters (LEOFF)
retirement system hired before October 1, 1977 under a defined benefit healthcare plan
administered by the City.
The City is required to pay all healthcare expenses incurred by LEOFF 1 retirees. The City's
cost is reduced by any amounts retirees receive from Medicare or other health plans. LEOFF 1
retirees may request reimbursement for healthcare expenses that are not paid by their primary
healthcare plan. The City pays the Medicare Part B premium. In addition, LEOFF 1 retirees are
eligible for long term care, dental, and vision benefits and coverage continues throughout the
lifetime of the retiree. Dependents do not receive LEOFF 1 postemployment healthcare benefits.
Under the authorization of the LEOFF Disability Board, direct payment is made for other retiree
medical expenses not covered by standard medical plan benefit provisions. Coverage continues
throughout the lifetime of the retiree. Financial reporting for the LEOFF retiree healthcare plan is
included in the City's Comprehensive Annual Financial Report.
Membership
Membership in this program includes Plan 1 participants of LEOFF who joined the system by
September 30, 1977. As of December 31, 2008, 103 retirees met those eligibility requirements.
This is considered a closed group with no new members, with the exception of 3 active
employees who have not retired.
Funding Policy
Funding for LEOFF retiree healthcare costs is provided entirely by the City as required by RCW.
The City's funding policy is based upon pay-as-you-go financing requirements. Retirees are not
required to contribute any portion of the cost coverage.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-45
Contribution
Net
Fiscal Year
Annual
as a
Pension
Ending
Pension
Percentage
Obligation
December 31
Cost (APC)
of APC
(NPO)
2006
$ (103,110)
N/A
$ (773,166)
2007
(94,035)
N/A
(926,978)
2008
(89,247)
N/A
(1,082,280)
Employees are not required to make contributions. The contributions to the System for 2008
include $85,949 from fire insurance premiums and $1,218,067 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 2008, $512,263 was paid for benefit payments and
$9,573 for medical payments.
The Net Pension Obligation moves from ($926,978) to ($1,082,280) and is included, as a non-
current asset, in the City of Renton's Governmental -wide Statement of Net Assets.
NOTE 7. OTHER POST EMPLOYMENT BENEFITS
Plan Description
As required by the Revised Code of Washington (RCW) Chapter 41.26, the City provides
lifetime medical care for members of the Law Enforcement Officers and Firefighters (LEOFF)
retirement system hired before October 1, 1977 under a defined benefit healthcare plan
administered by the City.
The City is required to pay all healthcare expenses incurred by LEOFF 1 retirees. The City's
cost is reduced by any amounts retirees receive from Medicare or other health plans. LEOFF 1
retirees may request reimbursement for healthcare expenses that are not paid by their primary
healthcare plan. The City pays the Medicare Part B premium. In addition, LEOFF 1 retirees are
eligible for long term care, dental, and vision benefits and coverage continues throughout the
lifetime of the retiree. Dependents do not receive LEOFF 1 postemployment healthcare benefits.
Under the authorization of the LEOFF Disability Board, direct payment is made for other retiree
medical expenses not covered by standard medical plan benefit provisions. Coverage continues
throughout the lifetime of the retiree. Financial reporting for the LEOFF retiree healthcare plan is
included in the City's Comprehensive Annual Financial Report.
Membership
Membership in this program includes Plan 1 participants of LEOFF who joined the system by
September 30, 1977. As of December 31, 2008, 103 retirees met those eligibility requirements.
This is considered a closed group with no new members, with the exception of 3 active
employees who have not retired.
Funding Policy
Funding for LEOFF retiree healthcare costs is provided entirely by the City as required by RCW.
The City's funding policy is based upon pay-as-you-go financing requirements. Retirees are not
required to contribute any portion of the cost coverage.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-45
2008 Comprehensive Annual Financial Report
City of Renton, Washington
Annual OPEB Cost and Net OPEB Obligation
The City's annual other postemployment benefit (OPEB) cost is calculated based upon the
annual required contribution (ARC), an amount actuarially determined in accordance with the
parameters of GASB Statement 45.
The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the
normal cost each year and amortize any unfunded actuarial liabilities over a period of 30 years as
of January 1, 2008. The following table shows the components of the City's annual OPEB cost
for the year, the amount actually contributed to the plan, and changes in the City's net OPEB.
Determination of Required Annual Contribution:
Normal Cost
Amortization of UAAL*
Annual Required Contribution (ARC)
Determination of Net OPEB Obligation:
Annual Required Contribution (ARC)
Interest on net OPEB Obligation
Adjustment to ARC
Annual OPEB Cost
Contributions Made
Increase in net OPEB Obligation
Net OPEB Obligation — Beginning of Year
Net OPEB Obligation — End of Year
*Unfunded Actuarial Accrued Liability (URAL)
Fiscal Year
Ending
12/31/2008
$154,545
$1,869,523
$2,024,068
$2,024,068
$2,024,068
($1,266,192)
$757,876
$757,876
The net OPEB obligation of $757,876 is included as a noncurrent liability on the Statement of
Net Assets.
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and
the net OPEB obligation for 2008 were as follows:
Percentage of
Annual OPEB Employer OPEB Cost Net OPEB
Cost Contribution Contributed Obligation
2008 $2,024,068 $1,266,192 59.85% $757,876
Funded Status and Funding Progress
As of January 1, 2008, the most recent actuarial valuation date, the plan was 0% funded. The
accrued liability for benefits was $32,327,794 and the actuarial value of the assets was $0
resulting in a UAAL of $32,327,794.
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-46
2008 Comprehensive Annual Financial Report
City of Renton, Washington
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and the plan members) and include the types of benefits
provided at the time of each valuation. Employer contributions are financed on a pay-as-you-go
basis. During the fiscal year ended December 31, 2008, expenditures of $1,266,192 were
recognized for post-retirement health care.
The schedule of funding progress, presented as required supplementary information following
the notes to the financial statements, presents the results of the OPEB valuations as of December
31, 2008. In future years, the schedule of funding progress will provide multi-year trend
information that shows whether the actuarial value of plan assets is increasing or decreasing over
time relative to the actuarial liabilities for benefits
Actuarial Methods and Assumptions
Nicolay Consulting prepared for the City an actuarial valuation report dated January 1, 2008. The
actuarial methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in actuarial accrued liabilities, consistent with the long-term
perspective of the calculations.
The actuarial valuation report was prepared using the projected unit credit method. The projected
unit credit method is an actuarial cost method under which the projected benefits of each
individual included in an Actuarial Valuation are separately calculated and allocated to each year
of service by a consistent formula.
The actuarial assumptions used included a 4.00% discount rate, which is based upon the long-
term investment yield on the investments that are expected to be used to finance payment of
benefits. Additionally, the following health care trend rate assumptions were used:
Annual Increase in Health Care Cost
Medicare Nursing Dental
Medical -Part B Home and Vision
Initial 8.50% 0.00% 4.00% 2.00%
Ultimate 5.50% 5.50% 4.00% 2.00%
The UAAL is being amortized based on a level dollar amortization over a closed 30 year -period
at the assumed discount rate. The remaining amortization period at December 31, 2008 was 29
years.
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.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-47
2008 Comprehensive Annual Financial Report City of Renton, Washington
Contingencies under Grant Provisions
The City participates in a number of federal and state assisted programs. These grants are
subject to audit by the grantors of their representatives. Such audits could result in requests for
reimbursement to grantor agencies for expenditures disallowed under the terms of the grants.
The City's management believes that such disallowances, if any, will be immaterial.
Bond Indentures
The City is in compliance with all significant bond indenture and restrictions, with the following
exception. Golf Course net revenues in 2007 and 2008 were severely impacted by inclement
weather and general economic conditions, 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 and
2008. The City continues to review rates and the 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:
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-48
2008 Comprehensive Annual Financial Report
City of Renton, Washington
Type of Coverage
Risk
Retention
Occurrence
Claims Administrator
Aggregate Amount
Carrier
Property — Expires
$ 25,000
WA Cities Ins
$500,000,000 (per
WA Cities Ins
01/01/2010
Authority
occurrence subject to
Authority
1/1/2010
annual aggregate &
150,000 HMA, Inc
N/A
1/1/2009
sub -limits)
Liability — Expires
250,000
WA Cities Ins
20,000,000
WA Cities Ins
01/01/2010
Authority
(per occurrence)
Authority
Auto Liability — Expires
25,000
WA Cities Ins
ACV or Replacement
WA Cities Ins
01/01/2010
Authority
Cost; per Occurrence
Authority
Public Officials (E&O) —
250,000
WA Cities Ins
15,000,000
WA Cities Ins
Expires 01/01/2010
Jail (Police Professional
Liability) - Expires
01/01/2010
Equipment breakdown —
Expires 1/1/2010
Crime —Expires 12/31/2009
Authority
10,000 WA Cities Ins
Authority
5,000* Arthur J. Gallagher
10,000 WA Cities Ins
Authority
30,000,000
50,000,000
2,500,000
Airport liability — Expires
- Arthur J. Gallagher
100,000,000
1/1/2010
Underground storage tank —
25,000 Arthur J. Gallagher
2,000,000
Expires 1/1/2010
Worker's comp — Expires
350,000 Berkley Risk
1,000,000
1/1/2010
Employee health — Expires
150,000 HMA, Inc
N/A
1/1/2009
* There is a 4 -hour utility interruption clause, prior to the deductible becoming applicable
Authority
WA Cities Ins
Authority
Zurich
National Union
Fire
Ace Property &
Casualty
Commerce &
Industry
Midwest Casualty
SunLife
For policy term January 1, 2009 to January 1, 2010, there were no reductions in insurance
coverage and an increase in premiums; however, 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
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-49
2008 Comprehensive Annual Financial Report City of Renton, Washington
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.
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, 2008, the City had accrued the following
amounts for outstanding claims:
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-50
Total Claims
Coverage
Payable 12/31/2008
Property & liability
$591,502
Worker's compensation
590,708
Employee health
1,722,915
TOTAL
$2,904,675
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-50
2008 Comprehensive Annual Financial Report
City of Renton, Washington
NOTE 10. INTERFUND TRANSACTIONS
Interfund transactions are classified as follows:
1. Services Provided — Transactions that would be treated as revenues, expenditures, or
expenses if they involve external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City
of Renton.
2. Transfers — Transactions to support the operations of other funds are recorded as
"Transfers" and classified with "Other Financing Sources or Uses" in the fund
statements. Transfers between governmental or proprietary funds are netted as part of the
reconciliation to the Government -wide financial statements.
3. Contributions — Contributions to the capital of enterprise or internal service funds,
transfers of capital assets between proprietary and governmental funds, transfers to
establish or reduce working capital in other funds, and transfers remaining balances when
funds are closed are classified non-operating revenue.
4. Loans/Advances — Loans between funds are classified as interfund loans receivable and
payable or as advances to and from other funds in the fund statements. Interfund loans
do not affect total fund equity, but advances to other funds are offset by a reservation of
fund equity. Loans and advances are subject to elimination upon consolidation.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-51
Property &
Worker's
Employee
2008
Liability
Compensation
Health
Totals
IBNR claims at beginning of the year
$792,487
$794,043
$1,399,425
$2,985,955
Current year and changes in estimates
764,281
(139,458)
9,275,803
9,900,626
Claims payments
(965,716)
(63,877)
(8,952,313)
(9,981,906)
IBNR claims at end of the year
$591,052
$590,708
$1,722,915
$2,904,675
NOTE 10. INTERFUND TRANSACTIONS
Interfund transactions are classified as follows:
1. Services Provided — Transactions that would be treated as revenues, expenditures, or
expenses if they involve external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City
of Renton.
2. Transfers — Transactions to support the operations of other funds are recorded as
"Transfers" and classified with "Other Financing Sources or Uses" in the fund
statements. Transfers between governmental or proprietary funds are netted as part of the
reconciliation to the Government -wide financial statements.
3. Contributions — Contributions to the capital of enterprise or internal service funds,
transfers of capital assets between proprietary and governmental funds, transfers to
establish or reduce working capital in other funds, and transfers remaining balances when
funds are closed are classified non-operating revenue.
4. Loans/Advances — Loans between funds are classified as interfund loans receivable and
payable or as advances to and from other funds in the fund statements. Interfund loans
do not affect total fund equity, but advances to other funds are offset by a reservation of
fund equity. Loans and advances are subject to elimination upon consolidation.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-51
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
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.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-51
2008 Comprehensive Annual Financial Report
City of Renton, Washington
As of December 31, 2008, outstanding interfund balances (resulting from various interfund
transactions) were as follows:
Fund
Receivables Due From
Payables Due To
Purpose
Other Funds
Other Funds
General fund
$ 922
Reclassification of expenditures
between funds after 12/31/2008
$184,244
Reclassification of revenues between
funds after 12/31/2008
Municipal Facilities
48,189
Reclassification of revenues between
CIP
funds after 12/31/2008
1989 Unlimit GO
94,249
Reclassification of revenues between
Bonds Sr Housing
funds after 12/31/2008
Airport Operations
5,269
Reclassification of expenditures
between funds after 12/31/2008
Insurance
922
Reclassification of expenditures
between funds after 12/31/2008
Special Hotel/ Motel
36,537
Reclassification of expenditures
Tax
between funds after 12/31/2008
TOTAL*
$185,166
$185,166
*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 Interfund
Receivable loans Pavab
$1,000,000 $
_ Interfund Loan to South lake WA
infrastructure fund
1,000,000 Interfund Loan from Municipal facilities CIP
fund
TOTAL* $1,000,000 $ 1,000,000
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-52
2008 Comprehensive Annual Financial Report
Transfers for 2008 were as follows:
City of Renton, Washington
Transfer
Fund In Transfer Out Purpose
General $317,000 Contribution for Capital Equipment
$579,503 Contribution for Capital Improvements and Establish
Housing Opportunity Fund
Arterial street Contribution for CIP Overlay Projects
$585,000 Contribution for Capital Improvements
Leased City Properties
$386,000 Contribution for Capital Improvements
General debt $300,000 Contribution from Fire Impact for Debt Payments
Fire Impact Mitigation
$300,000 Contribution for Fire Impact Debt Payments
Transportation Impact
Mitigation
$2,223,229 Contribution to Transportation CIP
Transportation CIP $2,868,229 Contribution for Capital Improvements
$75,000 Contribution to Municipal CIP Fund for Capital
Improvements
Community Development
Impact Mitigation
$111,875
Municipal CIP $685,378 Contribution for Capital Improvements
Housing Opportunity $200,000 Contribution from General Fund to Establish Fund
Waterworks
$110,000 Contribution for Capital Equipment
TOTAL $4,370,607 $4,370,607
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.
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-53
2008 Comprehensive Annual Financial Report
City of Renton, Washington
B. Restricted assets are liquid assets (generated from revenues and not bond proceeds), which
have third party (statutory, bond covenant, or granting agency) limitations on their use. The
City would typically use restricted assets first, as appropriated opportunities arise, but reserve
the right to selectively defer the use thereof to a future project or replacement equipment
acquisition.
Restricted assets are as follows:
Fund
Purpose
Amount
Hotel / Motel Tax
Tourism
$321,093
Arterial Street
Road construction
552,576
Cable Communications
Cable development
112,369
Paths and Trails
Acquire and maintain city trails
3,243
Springbrook Wetlands Bank
Accounting for wetlands management
456,502
1% for Art
Funding for art projects
121,678
Leased City Properties
Leased to outside source
1,239,206
Community Development Impact
Mitigation for park development
1,688,926
Municipal Facilities
Capital projects
13,774,100
Capital Projects
General governmental capital projects
8,491,406
South Lake Washington
Construction infrastructure for SLW
202,358
Fire Impact
Mitigation for fire improvements
2,483,647
Transportation Impact
Mitigation for transportation projects
3,576,947
Waterworks
Debt service reserves
3,730,167
Golf Course
Debt service reserves
441,358
TOTAL
$37,195,576
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
In 2008, the City of Renton annexed several communities identified as Potential Annexation
Areas (PAA), transferring capital assets to the City from King County. The annexations resulted
in a restatement of $105,330,297 in the General Governmental Funds and $5,613,984 in the
Waterworks Utility Fund. In addition, there was restatement of $3,589,557 within the
Waterworks Utility Fund for surface water infrastructure located at The Landing.
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.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-54
2008 Comprehensive Annual Financial Report
Short-term activities for the year ended December 31, 2008 was as follows:
City of Renton, Washington
Beginning
Ending Balance
Balance
12/31/2007
Debt 01/01/2007 Issued Redeemed
$2,000,000 $975,000 $1,391,000 $1,366,000
$1,000,000
NOTE 14. LONG TERM DEBT
The City of Renton's long-term debt consists of General Obligation Debt, repaid mainly from
general governmental revenue sources and Proprietary Debt, repaid from proprietary revenues.
These debts are accounted for in the following areas: 1) The outstanding general obligation debt
is reported in the government -wide financial statements; 2) The repayment, or debt service of the
same, is recorded in the Debt Service Funds; and, 3) The proprietary debt liability and repayment
of the same are reported in individual Proprietary Funds.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-55
2008 Comprehensive Annual Financial Report City of Renton, Washington
Outstanding debt issues as of December 31, 2008, are as follows:
TOTAL GOVERNMENTAL -TYPE DEBT ISSUANCE $62,899,344
BUSINESS -TYPE DEBT:
Revenue Bonds:
1998 Water/Sewer Refunding
4.46%
Issued
Maturity
Original Issued
Type of Debt
Interest Rates
Date
Date
Amount
GOVERNMENTAL DEBT:
4.80%
07/01/02
12/01/22
3,660,000
General Obligation Bonds:
3.20%
09/15/03
06/01/13
8,035,000
Limited
4.33%
11/01/04
12/01/27
10,335,000
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
2.00%
01/20/92
07/01/12
$58,629,344
Unlimited
1.00%
05/04/93
07/01/15
1,631,800
1993 GO Refunding Bonds - Senior Housing
5.20%-6.10%
09/01/93
02/01/09
4,270,000
SUBTOTAL UNLIMITED GO
2.00%
05/12/94
07/01/14
4,270,000
TOTAL GENERAL OBLIGATION BONDS
1.00%
05/15/95
07/01/15
$62,899,344
TOTAL GOVERNMENTAL -TYPE DEBT ISSUANCE $62,899,344
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
2008 Water/Sewer (a)
4.17%
01/04/08
12/01/27
9.975,000
2008 Water/Sewer (b)
4.17%
01/04/08
12/01/16
2,035,000
TOTAL REVENUE BONDS
$54,950,000
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
$72,243,890
TOTAL AMOUNT ISSUED ON OUTSTANDING DEBT AS OF DECEMBER 31, 2008
$135,143,234
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-56
2008 Comprehensive Annual Financial Report City of Renton, Washington
For outstanding debt additions and retirements are summarized as follows:
BUSINESS -TYPE DEBT
Revenue Bonds:
1998 Water/Sewer Refunding
Balance
- 570,000
2,915,000
Balance
Due Within
GOVERNMENTAL DEBT
1/1/2008
Additions
Deductions
12/31/2008
One Year
Limited General Obligation Debt
3,120,000
455,000
2003 Water/Sewer Refunding
3,800,000
- 1,130,000
1997 GO Bonds
$1,145,575
$ -
$655,575
$490,000
$490,000
1997 GO Bonds - CAB Long Term Interest
939,399
52,264
532,249
459,414
510,000
2000 GO Valley Comm. Bonds
1,595,000
-
167,000
1,428,000
175,000
2001 GO Refunding Bonds
13,120,000
-
85,000
13,035,000
335,000
2001 GO Bonds
6,000,000
-
-
6,000,000
-
2002 GO Bonds
3,175,000
-
155,000
3,020,000
160,000
2006 GO Bonds
17,980,000
-
520,000
17,460,000
540,000
Total Limited GO Bonds
$43,954,974
$52,264
$2,114,824
$41,892,414
$2,210,000
Unlimited General Obligation Debt
643,050
-
42,870
600,180
42,870
1993 GO Refunding Bonds- Senior Housing
985,000
-
480,000
505,000
505,000
Total General Obligation Bonds
$44,939,974
$52,264
$2,594,824
$42,397,414
$2,715,000
Installment Contracts:
76,074
-
20,919
55,155
21,995
Certificated of participation
16,976
-
16,976
-
-
Employee Leave Benefits (Comp. Absences)
4,440,424
3,210,894
2,531,042
5,120,276
2,918,558
Other post -employment benefits payable
-
2,024,068
1,266,192
757,876
-
Total General Obligation Debt
$49,397,374
$5,287,226
$6,409,034
$48,275,566
$5,633,558
BUSINESS -TYPE DEBT
Revenue Bonds:
1998 Water/Sewer Refunding
3,485,000
- 570,000
2,915,000
595,000
1999 Golf System Refunding
2,805,000
- 295,000
2,510,000
310,000
2002 Water/Sewer Bond
3,230,000
- 110,000
3,120,000
455,000
2003 Water/Sewer Refunding
3,800,000
- 1,130,000
2,670,000
825,000
2004 Water/Sewer Bond
10,335,000
- -
10,335,000
-
2007 Water/Sewer Bond
1,430,000
-
1,430,000
-
2007 Water/Sewer Bond (02)
8,320,000
-
8,320,000
15,000
2008 Water/Sewer Bond (a)
-
9,975,000
9,975,000
-
2008 Water/Sewer Bond (b)
-
2,035,000
2,035,000
-
Total Revenue Bonds
$33,405,000
$12,010,000
$2,105,000
$43,310,000
$2,200,000
Public Works Trust Fund Loans:
Sierra Heights Sewer Improvements
128,210
-
25,642
102,568
25,642
Central Renton Sewer Replacement
628,934
-
87,483
541,451
87,483
East Renton Interceptor
807,420
-
134,570
672,850
134,570
Dayton Avenue NE
35,721
-
5,103
30,618
5,103
NE 27th/Aberdeen Drainage Improvement
340,720
-
42,590
298,130
42,590
East Kennydale Interceptor
1,051,695
-
116,855
934,840
116,855
Honeycreek Interceptor
871,848
-
96,872
774,976
96,872
Corrosion Control Treatment Facilities
493,570
-
49,357
444,213
49,357
Maplewood Water Improvement
424,214
-
30,301
393,913
30,301
Const. CT Pipeline for Wells
643,050
-
42,870
600,180
42,870
Maplewood Water Improvements
4,377,500
257,500
257,500
4,377,500
272,647
Total Public Work Trust Fund Loan
9,802,882
257,500
889,143
9,171,239
904,290
Golf Course Cart Operating Lease
76,074
-
20,919
55,155
21,995
Employee Leave Benefits (Comp. Absences)
715,249
235,514
334,446
616,317
151,334
Total Business -Type Debt
$43,999,205
$12,503,014
$3,349,508
$53,152,711
$3,277,619
GRAND TOTALS
$93,396,578
$17,790,240
$9,758,542
$101,428,277
$8,911,177
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-57
2008 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 year 2009 with an accreted
value of $1,000,000. The deep -discount debt is reported in the Government -wide financial
statements in the amount of $490,000, net of the remaining unamortized discount.
SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMMITMENT
As of December 31, 2008, 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.
ARBITRAGE
The City engages an outside agency to calculate its' arbitrage rebate liability on outstanding tax-
exempt bonds and certificates of participation under Section 148(f) of the Internal Revenue
Code. For bonds that have reached their installment computation dates (bonds outstanding for
five years initially and every five years thereafter until the last of the bond issue matures) the
City paid an arbitrage rebate in the amount of $9,594 on the City's 2003 Water and Sewer
Revenue Refunding Bonds. No additional rebate was found due for other revenue or general
obligation bonds for 2008.
NEWLY ISSUED DEBT
The Water and Sewer Revenue Bonds (A and B) were issued January 4, 2008 in the amount of
$9,975,000 and $2,035,000, respectively. The average interest rate is 4.17%. These bonds were
issued for the purpose of providing money to pay part of the costs of construction and acquisition
of certain improvements to the waterworks utility. The Series A (tax exempt) bonds are payable
semiannually with interest -only payments until December 1, 2016 when annual principal
payments will also be required. The final payment will be December 1, 2027. The Series B
(taxable) bonds are payable semi-annually with interest -only payments until December 1, 2013
when annual principal payment will also be required. The final payment will be December 1,
2016.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-58
2008 Comprehensive Annual Financial Report City of Renton, Washington
ANNUAL DEBT SERVICE REQUIREMENTS
The annual debt service requirements to maturity, including principal and interest, for long-term
debt as of December 31, 2008, are as follows:
AMOUNT AVAILABLE FOR DEBT SERVICE
Fund balances that have been reserved for debt repayment are $1,270,936 in the debt service
funds.
NOTE 15 - DEFERRED CHARGES IN PROPRIETARY FUNDS
As of December 31, 2008, the total amount of deferred charges and other assets reported in the
proprietary funds is $788,108. The Waterworks Utility Fund had deferred charges and other
assets in the amount of $756,945 for debt issuance costs related to the 2002-2008 Revenue
Bonds. This amount will be fully amortized by 2027. The Golf Course Fund had deferred
charges and other assets amounting to $31,163 for debt issuance costs related to the 1999
Refunding Revenue Bond. 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 2008.
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.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-59
Governmental Activities
Business -Type
Activities
Year
Principal
Interest
Principal
Interest
2009
$2,205,000
$2,549,448
$3,141,433
$1,963,233
2010
2,269,000
1,975,553
3,207,417
1,869,186
2011
2,353,000
1,883,688
3,284,324
1,770,243
2012
2,467,000
1,786,176
3,374,290
1,657,422
2013
2,580,000
1,660,989
2,863,648
1,547,100
2014-2018
13,579,000
6,232,638
12,642,018
6,354,836
2019-2023
10,415,000
2,896,971
12,850,618
4,074,204
2024-2028
6,070,000
943,238
11,172,647
1,312,281
Subtotal
$ 41,938,000
$ 19,928,699
$ 52,536,394
$ 20,548,504
CAB Interest
459,414
-
-
-
Totals
$ 42,397,414
$ 19,928,699
$ 52,536,394
$ 20,548,504
AMOUNT AVAILABLE FOR DEBT SERVICE
Fund balances that have been reserved for debt repayment are $1,270,936 in the debt service
funds.
NOTE 15 - DEFERRED CHARGES IN PROPRIETARY FUNDS
As of December 31, 2008, the total amount of deferred charges and other assets reported in the
proprietary funds is $788,108. The Waterworks Utility Fund had deferred charges and other
assets in the amount of $756,945 for debt issuance costs related to the 2002-2008 Revenue
Bonds. This amount will be fully amortized by 2027. The Golf Course Fund had deferred
charges and other assets amounting to $31,163 for debt issuance costs related to the 1999
Refunding Revenue Bond. 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 2008.
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.
The notes to thefinancial statements are an integral part of this statement. Basic Financial Statements, 4-59
2008 Comprehensive Annual Financial Report City of Renton, Washington
VALLEY COMMUNICATIONS CENTER
The "Valley Communications Center" was established August 20, 1976, when an Interlocal
Agreement was entered into by four original participating municipal corporations, including the
cities of Renton, Kent, Auburn, and Tukwila. Federal Way was formally admitted in 2000. The
agreement is sanctioned by the provisions and terms of the Interlocal Cooperation Act pursuant
to Chapter 39.34 RCW. The initial duration of the agreement was five years, and thereafter is
automatically extended for consecutive five-year periods.
The purpose of the joint operation, hereafter referred to as Valley Comm, is to provide improved
consolidated emergency communications (dispatch) services for police, fire, and medical aid, to
the five participating cities and to several subscribing agencies that include: King County Fire
Districts 2, 17 (Black Diamond), 20, 26, 40, 43, 44, 47; City of Pacific Police and Fire
Departments; City of Black Diamond Police Department; City of Des Moines Police
Department; SeaTac Fire Department; North Highline Fire Department; King County EMS
Units; and Vashon Island Fire Department. Separate agreements between Valley Comm and the
subscribing agencies have been executed, which set forth conditions of services and rates
charged.
The City of Renton reports its share of equity interest in the Governmental Activities column
within the Government -wide financial statements under non-current assets. The following is
condensed (unaudited) financial information as of December 31, 2008, on Valley Comm:
Valley Comm Renton Interest
Assets $25,107,535 21.92%*
Liabilities 744,100
TOTAL Equity $24,363,434 $4,454,176
*After removing $4,042,221 in assets not subject to the equity interest
calculations.
Completed Financial Statements for Valley Comm can be obtained from the Valley
Communications Center, 23807 — 981h Avenue South, Kent, WA 98031.
NOTE 18. SUBSEQUENT EVENTS
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 City postponed the project and did not issue bonds for this
purpose.
The City of Renton established a public corporation, the South Correctional Entity Facility
Public Development Authority (SCORE) on February 25, 2009. The Authority is issuing bonds
to pay a portion of the costs of acquiring, constructing, and equipping a correctional facility to be
located in Des Moines. Payment for the bonds, estimated to be $100 million, would be secured
by the full faith and credit of "member" cities under interlocal agreements with the cities of
Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac, and Tukwila.
On May 11, 2009 Fitch Rating Service "Fitch" downgraded the insurer's financial strength rating
on FSA to "AA-" from "AAA". FSA's rating outlook is negative. The City of Renton,
Washington's underlying rating is "AA-".
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-60
2008 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, 2008
Required Supplemental Information, 5-1
ACTUAL
BUDGET TO GAAP
BUDGETED
AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Taxes
$ 70,602,536
$ 70,602,536
$ 66,844,997
$ (3,757,539)
Licenses and permits
4,005,050
4,005,050
2,751,420
(1,253,630)
Intergovernmental revenues
4,614,140
8,555,562
8,773,933
218,371
Charges for services
4,885,250
4,956,932
3,976,920
(980,012)
Fines and forfeits
1,585,000
1,585,000
2,002,854
417,854
Interfund revenues
3,065,778
3,065,778
3,072,526
6,748
Contributions
98,000
164,065
-
(164,065)
Interest
1,026,800
1,026,800
587,590
(439,210)
Miscellaneous revenues
163,700
163,700
64,359
(99,341)
TOTAL REVENUES
$ 90,046,254
$ 94,125,423
$ 88,074,599
$ (6,050,824)
EXPENDITURES
Current:
General government
$ 15,112,327
$ 15,456,188
$ 14,387,478
$ (1,068,710)
Judicial
1,804,091
1,804,091
1,761,665
(42,426)
Security of persons and property
42,164,497
46,529,020
45,530,208
(998,812)
Physical environment
3,578,057
3,777,678
3,123,883
(653,795)
Transportation
6,761,824
6,857,404
6,332,006
(525,398)
Economic environment
7,068,014
7,178,308
6,232,669
(945,639)
Mental & physical health
10,600
10,600
16,459
5,859
Culture & recreation
11,899,559
12,025,076
11,119,073
(906,003)
Capital outlay
1,973,091
2,187,644
2,017,677
(169,967)
TOTAL EXPENDITURES
$ 90,372,060
$ 95,826,009
$ 90,521,118
$ (5,304,891)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$ (325,806)
$ (1,700,586)
$ (2,446,519)
$ (745,933)
OTHER FINANCING SOURCES (USES)
Transfer in
$ -
$ 81,364
$ -
$ (81,364)
Transfer (out)
(450,723)
(734,326)
(519,503)
214,823
Sale of capital assets
735
735
TOTAL OTHER FINANCE SOURCES (USES)
$ (450,723)
$ (652,962)
$ (518,768)
$ 134,194
NET CHANGE IN FUND BALANCE
$ (776,529)
$ (2,353,548)
$ (2,965,287)
$ (611,739)
FUND BALANCE JANUARY 1
$ 16,471,966
$ 16,482,384
$ 16,482,384
$
FUND BALANCE DECEMBER 31
$ 15,695,437
$ 14,128,836
$ 13,517,097
$ (611,739)
Required Supplemental Information, 5-1
2008 Comprehensive Annual Financial Report
ACTUARIAL VALUATION OF FIREFIGHTERS' PENSION FUND
EMPLOYER CONTRIBUTIONS
December 31, 2008
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
OF ARC
FISCAL YEAR ENDING
CONTRIBUTIONS*
PREMIUMS
CONTRIBUTIONS
(ARC)**
CONTRIBUTED
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
December 31, 2008
(19,894)
85,949
66,055
(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
2008 Comprehensive Annual Financial Report City of Renton, Washington
LEOFF 1 RETIREE MEDICAL BENEFITS
SCHEDULE OF FUNDING PROGRESS
December 31, 2008
Required Supplemental Information, 5-3
ACTUARIAL ACCRUED
UAAL AS A
ACTUARIAL
LIABILITY (AAL)-
PERCENTAGE OF
ACTUARIAL
VALUE OF
PROJECTED UNIT
UNFUNDED
FUNDED COVERED COVERED
VALUATION
ASSETS
CREDIT
UAAL
RATIO PAYROLL PAYROLL
DATE
(a)
(b)
(b -a)
(a/b) (C) ((b -a) /c)
January 1, 2008 $
$ 32,327,794 $
32,327,794 $
0% 842,500 3837%
Required Supplemental Information, 5-3
2008 Comprehensive Annual Financial Report
This page intentionally left blank.
City of Renton, Washington
Required Supplemental Information, 5-4
2008 Comprehensive Annual Financial Report City of Renton, Washington
Non -Major Governmental Fund
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.
LEASED CITY PROPERTIES
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 1% in hotel/motel taxes for the
purpose of increasing tourism in 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.
PATHS AND TRAILS RESERVE FUND
The Paths and Trails Reserve Fund was created for the purpose of planning,
accommodating, and establishing and maintaining certain paths and trails within the City
of Renton.
1 % FOR ART FUND
The City of Renton established this fund by contributing 1% of general governmental
capital project funding for art projects.
CABLE COMMUNICATIONS DEVELOPMENT FUND
The Cable Communications Development Fund accounts for funding for promotion and
development of cable communications as established by City ordinance.
Combining Statements & Schedules, 6-1
2008 Comprehensive Annual Financial Report City of Renton, Washington
Debt Service Funds
GENERAL GOVERNMENTAL MISCELLANEOUS DEBT
Accounts for 1997 limited general obligation bond redemption on a Council -approved
bond issue, which provided funding for the purchase of Renton City Hall (2001 GO
Refund Bonds) and for 1978 limited general obligation bond redemption 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.
Combining Statements & Schedules, 6-2
2008 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.
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: BEET, 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
2008 Comprehensive Annual Financial Report City of Renton, Washington
Non -Major Proprietary Funds
Enterprise Funds
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
2008 Comprehensive Annual Financial Report
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2008
Page 1 of 6
City of Renton, Washington
Combining Statements & Schedules, 6-5
SPECIAL REVENUE FUNDS
ARTERIAL
LEASED CITY
HOTEL/
SPRINGBROOK
ASSETS
STREET
PROPERTIES
MOTEL TAX
WETLANDS
Cash & cash equivalents
$
372,729
$ 1,221,941 $
250,779
$ 456,502
Receivables (net of allowances):
Customer accounts
-
122,220
-
-
Due from other funds
-
-
36,537
Due from other governmental units
179,847
33,809
-
TOTAL ASSETS
$
552,576
$ 1,344,161 $
321,125
$ 456,502
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
$
-
$ 4,726 $
32
$ -
Taxes payable
45,588
-
Retainage payable
1,739
Deposits
32,981
Deferred revenue
15,601
Accrued employee wages and leave payable
4,320
Total liabilities
$
-
$ 104,955 $
32
$ -
Fund balances
Unreserved, designated for:
Special revenue fund contingencies
552,576
1,239,206
321,093
456,502
Total fund balances
$
552,576
$ 1,239,206 $
321,093
$ 456,502
TOTAL LIABILITIES AND FUND BALANCES
$
552,576
$ 1,344,161 $
321,125
$ 456,502
Combining Statements & Schedules, 6-5
2008 Comprehensive Annual Financial Report
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2008
Page 2 of 6
SPECIAL REVENUE FUNDS
City of Renton, Washington
Combining Statements & Schedules, 6-6
PATHS &
1% FOR
CABLE COMM.
TOTAL
ASSETS
TRAILS
ART
& DEVELOPMENT
SRF
Cash & cash equivalents
$
3,243
$ 121,678
$ 113,873
$ 2,540,745
Receivables (net of allowances):
Customer accounts
-
-
-
122,220
Due from other funds
36,537
Due from other governmental units
-
-
-
213,656
TOTAL ASSETS
$
3,243
$ 121,678
$ 113,873
$ 2,913,158
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
$
-
$ -
$ 1,504
$ 6,262
Taxes payable
-
45,588
Retainage payable
1,739
Deposits
32,981
Deferred revenue
15,601
Accrued employee wages and leave payable
-
4,320
Total liabilities
$
-
$ -
$ 1,504
$ 106,491
Fund balances
Unreserved, designated for:
Special revenue funds contingencies
3,243
121,678
112,369
2,806,667
Total fund balances
$
3,243
$ 121,678
$ 112,369
$ 2,806,667
TOTAL LIABILITIES AND FUND BALANCES
$
3,243
$ 121,678
$ 113,873
$ 2,913,158
Combining Statements & Schedules, 6-6
2008 Comprehensive Annual Financial Report
ASSETS
Cash & cash equivalents
Investments
Receivables (net of allowances):
Taxes
Accrued interest & penalty
Due from other funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Deferred revenue
Total liabilities
Fund balances
Unreserved. Designated for:
Debt service funds
Total fund balances
City of Renton, Washington
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2008
Page 3 of 6
GENERAL 1989UGO BOND TOTAL
DEBT REDEMPTION DSF
$ 146,493 $ 496,153 $ 642,646
350,000 - 350,000
126,217 13,124 139,341
50,819 572 51,391
- 94,249 94,249
$ 673,529 $ 604,098 $ 1,277,627
- $ 6,691 $ 6,691
$ 6,691 $ 6,691
$ 673,529 $ 597,407 $ 1,270,936
$ 673,529 $ 597,407 $ 1,270,936
$ 673,529 $ 604,098 $ 1,277,627
Combining Statements & Schedules, 6-7
2008 Comprehensive Annual Financial Report
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2008
Page 4 of 6
City of Renton, Washington
Combining Statements & Schedules, 6-8
C.D. IMPACT
FIRE IMPACT
TRANS. IMPACT
MUNICIPAL
ASSETS
MITIGATION
MITIGATION
MITIGATION
FACILITIES CIP
Cash & cash equivalents
$
1,425,709
$ 915,771
$ 1,399,103
$ 889,771
Investments
250,000
1,500,000
1,943,852
10,921,805
Receivables (net of allowances):
Taxes
-
-
-
126,217
Customer accounts
-
-
173,102
-
Accrued interest & penalty
13,217
107,880
60,890
690,760
Interfund loans receivable
-
-
-
1,000,000
Due from other funds
48,189
Due from other governmental units
-
-
-
320,922
TOTAL ASSETS
$
1,688,926
$ 2,523,651
$ 3,576,947
$ 13,997,664
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
$
-
$ -
$ -
$ 142,380
Retainage payable
40,004
81,184
Interfund loans payable
-
-
Totalliabilities
$
$ 40,004
$
$ 223,564
Fund balances
Reserved for:
Interfund loans receivable
1,000,000
Unreserved, designated for:
Capital projects funds
$
1,688,926
$ 2,483,647
$ 3,576,947
$ 12,774,100
Total fund balances
$
1,688,926
$ 2,483,647
$ 3,576,947
$ 13,774,100
TOTAL LIABILITIES AND FUND BALANCES
$
1,688,926
$ 2,523,651
$ 3,576,947
$ 13,997,664
Combining Statements & Schedules, 6-8
2008 Comprehensive Annual Financial Report
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2008
Page 5 of 6
City of Renton, Washington
Combining Statements & Schedules, 6-9
SO LK WA INFRA-
TOTAL
ASSETS
STRUCTURE
CPF
Cash & cash equivalents
$
522
$ 4,630,876
Investments
-
14,615,657
Receivables (net of allowances):
-
Taxes
-
126,217
Customer accounts
1,704,184
1,877,286
Accrued interest & penalty
-
872,747
Interfund loans receivable
1,000,000
Due from other funds
-
48,189
Due from other governmental units
347,850
668,772
TOTAL ASSETS
$
2,052,556
$ 23,839,744
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
$
850,198
$ 992,578
Retainage payable
-
121,188
Interfund loans payable
1,000,000
1,000,000
Total liabilities
$
1,850,198
$ 2,113,766
Fund balances
Reserved for:
Interfund loans receivable
-
1,000,000
Unreserved, designated for:
-
Capital projects funds
$
202,358
$ 20,725,978
Total fund balances
$
202,358
$ 21,725,978
TOTAL LIABILITIES AND FUND BALANCES
$
2,052,556
$ 23,839,744
Combining Statements & Schedules, 6-9
2008 Comprehensive Annual Financial Report
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2008
Page 6 of 6
City of Renton, Washington
Combining Statements & Schedules, 6-10
TOTAL OTHER
TOTAL
TOTAL
TOTAL
GOVERNMENTAL
ASSETS
SRF
DSF
CPF
FUNDS
Cash & cash equivalents
$
2,540,745
$ 642,646
$ 4,630,876
$ 7,814,267
Investments
-
350,000
14,615,657
14,965,657
Receivables (net of allowances):
Taxes
-
139,341
126,217
265,558
Customer accounts
122,220
-
1,877,286
1,999,506
Accrued interest & penalty
-
51,391
872,747
924,138
Interfund loans receivable
-
-
1,000,000
1,000,000
Due from other funds
36,537
94,249
48,189
178,975
Due from other governmental units
213,656
-
668,772
882,428
TOTAL ASSETS
$
2,913,158
$ 1,277,627
$ 23,839,744
$ 28,030,529
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
$
6,262
$ -
$ 992,578
$ 998,840
Taxes payable
45,588
-
45,588
Retainage payable
1,739
121,188
122,927
Interfund loans payable
-
1,000,000
1,000,000
Deposits
32,981
-
-
32,981
Deferred revenue
15,601
6,691
22,292
Accrued employee wages and leave payable
4,320
-
4,320
Total liabilities
$
106,491
$ 6,691
$ 2,113,766
$ 2,226,948
Fund balances
Reserved for:
Interfund loans receivable
-
-
1,000,000
1,000,000
Unreserved, designated for:
Special revenue funds contingency
2,806,667
-
-
2,806,667
Unreserved reported in:
Debt service funds
-
1,270,936
-
1,270,936
Capital projects funds
-
-
20,725,978
20,725,978
$
2,806,667
$ 1,270,936
$ 21,725,978
$ 25,803,581
TOTAL LIABILITIES AND FUND BALANCES
$
2,913,158
$ 1,277,627
$ 23,839,744
$ 28,030,529
Combining Statements & Schedules, 6-10
2008 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, 2008
Page 1 of 6
REVENUES
Taxes
Intergovernmental revenues
Charges for services
Contributions
Interest
TOTALREVENUES
EXPENDITURES
Current:
General government
Economic environment
Capital outlay
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer (out)
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
SPECIAL REVENUE FUNDS
ARTERIAL LEASED CITY HOTEL/ SPRINGBROOK
STREET PROPERTIES MOTEL TAX WETLANDS
$ - $ 84,564 $ 252,233 $
650,721 - -
- 1,072,669 -
- - 60,000 -
10,528 18,700 7,276 8,502
$ 661,249 $ 1,175,933 $ 319,509 $ 8,502
$ $ 706,662 $ - $
- 346,432
$ $ 706,662 $ 346,432 $ -
$ 661,249 $ 469,271 $ (26,923) $ 8,502
$ (585,000) $ (386,000) $
$ (585,000) $ (386,000) $
$ 76,249 $ 83,271 $ (26,923) $ 8,502
$ 476,327 $ 1,155,935 $ 348,016 $ 448,000
$ 552,576 $ 1,239,206 $ 321,093 $ 456,502
Combining Statements & Schedules, 6-11
2008 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, 2008
Page 2 of 6
SPECIAL REVENUE FUNDS
PATHS & 1% FOR CABLE COMM. TOTAL
TRAILS ART & DEVELOPMENT SRF
REVENUES
Taxes
Intergovernmental revenues
Charges for services
Contributions
Interest
TOTALREVENUES
EXPENDITURES
Current:
General government
Economic environment
Capital outlay
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer (out)
TOTAL OTHER FINANCE SOURCES (USES)
$ $
$
$ 70,000
$ 406,797
$ 48,591
$ 190,071
-
650,721
3,183
$ 121,357
$ 63,778
1,072,669
FUND BALANCE DECEMBER 31
$
-
60,000
60
2,300
1,705
49,071
$ 60 $
2,300
$ 71,705
$ 2,239,258
$ - $
-
$ -
$ 706,662
-
23,114
369,546
1,979
-
1,979
$ - $
1,979
$ 23,114
$ 1,078,187
321
$ 48,591
$ 1,161,071
$ 60 $
$ - $
-
$ -
$ (971,000)
$ - $
$
$ (971,000)
NET CHANGE IN FUND BALANCE
$
60
$ 321
$ 48,591
$ 190,071
FUND BALANCE JANUARY 1
$
3,183
$ 121,357
$ 63,778
$ 2,616,596
FUND BALANCE DECEMBER 31
$
3,243
$ 121,678
$ 112,369
$ 2,806,667
Combining Statements & Schedules, 6-12
2008 Comprehensive Annual Financial Report
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2008
Page 3 of 6
City of Renton, Washington
NET CHANGE IN FUND BALANCE
$
GENERAL
1989 UGO BOND
TOTAL
FUND BALANCE JANUARY 1
$
DEBT
REDEMPTION
DSF
REVENUES
$
673,529
$ 597,407
$ 1,270,936
Taxes
$
3,805,277
$ 501,576
$ 4,306,853
Interest
52,637
5,756
58,393
TOTAL REVENUES
$
3,857,914
$ 507,332
$ 4,365,246
EXPENDITURES
Debt service:
Debt service:
$
1,599,551
$ 480,000
$ 2,079,551
Interest payment
2,664,188
43,485
2,707,673
TOTAL EXPENDITURES
$
4,263,739
$ 523,485
$ 4,787,224
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
(405,825)
$ (16,153)
$ (421,978)
OTHER FINANCING SOURCES (USES)
Transfer in
$
300,000
$
$ 300,000
TOTAL OTHER FINANCE SOURCES (USES)
$
300,000
$
$ 300,000
NET CHANGE IN FUND BALANCE
$
(105,825)
$ (16,153)
$ (121,978)
FUND BALANCE JANUARY 1
$
779,354
$ 613,560
$ 1,392,914
FUND BALANCE DECEMBER 31
$
673,529
$ 597,407
$ 1,270,936
Combining Statements & Schedules, 6-13
2008 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, 2008
Page 4 of 6
NET CHANGE IN FUND BALANCE
C.D. IMPACT
FIRE IMPACT
TRANS. IMPACT
MUNICIPAL
$ (2,746,588)
MITIGATION
MITIGATION
MITIGATION
FACILITIES CIP
REVENUES
$ 16,520,688
FUND BALANCE DECEMBER 31
$
1,688,926
Taxes
$
$
$
$ 824,707
Licenses and permits
-
Intergovernmental revenues
266,806
Charges for services
273,952
339,623
782,584
-
Contributions
-
-
-
75,000
Interest
28,662
99,736
260,618
655,931
Miscellaneous revenues
-
-
-
1,209,000
TOTAL REVENUES
$ 302,614
$ 439,359
$ 1443,202
$ 3,031,444
EXPENDITURES
Current:
Economic environment
$ -
$ -
$ -
$ 67,248
Capital outlay
6,596,162
Debt service:
Interest payment
-
TOTAL EXPENDITURES
$ -
$
$ -
$ 6,663,410
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$ 302,614
$ 439,359
$ 1,043,202
$ (3,631,966)
OTHER FINANCING SOURCES (USES)
Transfer in
$ -
$ -
$ -
$ 885,378
Transfer (out)
(111,875)
(300,000)
(2,223,229)
-
TOTAL OTHER FINANCE SOURCES (USES)
$ (111,875)
$ (300,000)
$ (2,223,229)
$ 885,378
NET CHANGE IN FUND BALANCE
$
190,739
$ 139,359
$ (1,180,027)
$ (2,746,588)
FUND BALANCE JANUARY 1
$
1,498,187
$ 2,344,288
$ 4,756,974
$ 16,520,688
FUND BALANCE DECEMBER 31
$
1,688,926
$ 2,483,647
$ 3,576,947
$ 13,774,100
Combining Statements & Schedules, 6-14
2008 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, 2008
Page 5 of 6
Combining Statements & Schedules, 6-15
SO LK WA INFRA-
TOTAL
STRUCTURE
CPF
REVENUES
Taxes
$ 131,034
$ 955,741
Licenses and permits
268,000
268,000
Intergovernmental revenues
500,000
766,806
Charges for services
700,202
2,096,361
Contributions
-
75,000
Interest
34
1,044,981
Miscellaneous revenues
-
1,209,000
TOTAL REVENUES
$ 1,599,270
$ 6,415,889
EXPENDITURES
Current:
Economic environment
$ 4,218
$ 71,466
Capital outlay
1,912,775
8,508,937
Debt service:
-
Interest payment
21,574
21,574
TOTAL EXPENDITURES
$ 1,938,567
$ 8,601,977
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$ (339,297)
$ (2,186,088)
OTHER FINANCING SOURCES (USES)
Transfer in
$
$ 885,378
Transfer (out)
(2,635,104)
TOTAL OTHER FINANCE SOURCES (USES)
$
$ (1,749,726)
NET CHANGE IN FUND BALANCE
$ (339,297)
$ (3,935,814)
FUND BALANCE JANUARY 1
$ 541,655
$ 25,661,792
FUND BALANCE DECEMBER 31
$ 202,358
$ 21,725,978
Combining Statements & Schedules, 6-15
2008 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, 2008
Page 6 of 6
Combining Statements & Schedules, 6-16
TOTAL OTHER
TOTAL
TOTAL
TOTAL
GOVERNMENTAL
SRF
DSF
CPF
FUNDS
REVENUES
Taxes
$
406,797
$ 4,306,853
$ 955,741
$ 5,669,391
Licenses and permits
-
-
268,000
268,000
Intergovernmental revenues
650,721
766,806
1,417,527
Charges for services
1,072,669
2,096,361
3,169,030
Contributions
60,000
-
75,000
135,000
Interest
49,071
58,393
1,044,981
1,152,445
Miscellaneous revenues
-
-
1,209,000
1,209,000
TOTAL REVENUES
$
2,239,258
$ 4,365,246
$ 6,415,889
$ 13,020,393
EXPENDITURES
Current:
General government
$
706,662
$ -
$ -
$ 706,662
Economic environment
369,546
71,466
441,012
Capital outlay
1,979
-
8,508,937
8,510,916
Debt service:
Principal payment
-
2,079,551
-
2,079,551
Interestpaymenl
-
2,707,673
21,574
2,729,247
TOTAL EXPENDITURES
$
1,078,187
$ 4,787,224
$ 8,601,977
$ 14,467,388
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
1,161,071
$ (421,978)
$ (2,186,088)
$ (1,446,995)
OTHER FINANCING SOURCES (USES)
Transfer in
$
-
$ 300,000
$ 885,378
$ 1,185,378
Transfer (out)
(971,000)
-
(2,635,104)
(3,606,104)
TOTAL OTHER FINANCE SOURCES (USES)
$
(971,000)
$ 300,000
$ (1,749,726)
$ (2,420,726)
NET CHANGE IN FUND BALANCE
$
$ (3,935,814)
$ (3,867,721)
190,071
$ (121,978)
FUND BALANCE JANUARY 1
$
2,616,596
$ 1,392,914
$ 25,661,792
$ 29,671,302
FUND BALANCE DECEMBER 31
$
2,806,667
$ 1,270,936
$ 21,725,978
$ 25,803,581
Combining Statements & Schedules, 6-16
2008 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, 2008
Combining Statements & Schedules, 6-17
ACTUAL
BUDGET TO GAAP
BUDGETED
AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Intergovernmental revenues
$
580,000
$ 580,000
$ 650,721
$ 70,721
Interest
5,000
5,000
10,528
5,528
TOTAL REVENUES
$
585,000
$ 585,000
$ 661,249
$ 76,249
TOTAL EXPENDITURES
$
-
$ -
$ -
$ -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
585,000
$ 585,000
$ 661,249
$ 76,249
OTHER FINANCING SOURCES (USES)
Transfer (out)
(585,000)
(585,000)
(585,000)
-
TOTAL OTHER FINANCE SOURCES (USES)
$
(585,000)
$ (585,000)
$ (585,000)
$ -
NET CHANGE IN FUND BALANCE
$
-
$ -
$ 76,249
$ 76,249
FUND BALANCE JANUARY 1
$
476,327
$ 476,327
$ 476,327
$
FUND BALANCE DECEMBER 31
$
476,327
$ 476,327
$ 552,576
$ 76,249
Combining Statements & Schedules, 6-17
2008 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, 2008
Combining Statements & Schedules, 6-18
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Taxes
$
84,564 $
84,564 $
84,564 $
Charges for services
1,153,139
1,153,139
1,072,669
(80,470)
Interest
-
-
18,700
18,700
TOTAL REVENUES
$
1,237,703 $
1,237,703 $
1,175,933 $
(61,770)
EXPENDITURES
Current:
General government
$
760,836 $
732,080 $
706,662 $
(25,418)
Debt service:
Principal payment
-
60,000
-
(60,000)
Interest payment
-
3,600
-
(3,600)
TOTAL EXPENDITURES
$
760,836 $
795,680 $
706,662 $
(89,018)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
476,867 $
442,023 $
469,271 $
27,248
OTHER FINANCING SOURCES (USES)
Transfer (out)
$ (386,000) $ (386,000) $
(386,000) $
-
TOTAL OTHER FINANCE SOURCES (USES)
$ (386,000) $ (386,000) $
(386,000) $
-
NET CHANGE IN FUND BALANCE
$
90,867 $
56,023 $
83,271 $
27,248
FUND BALANCE JANUARY 1
$
1,155,935 $
1,155,935 $
1,155,935 $
FUND BALANCE DECEMBER 31
$
1,246,802 $
1,211,958 $
1,239,206 $
27,248
Combining Statements & Schedules, 6-18
2008 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - HOTEL/MOTEL TAX FUND
For the Year Ended December 31, 2008
Combining Statements & Schedules, 6-19
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Taxes
$
232,000
$ 232,000
$ 252,233 $
20,233
Contributions
65,000
65,000
60,000
(5,000)
Interest
10,000
10,000
7,276
(2,724)
TOTAL REVENUES
$
307,000
$ 307,000
$ 319,509 $
12,509
EXPENDITURES
Current:
Economic environment
$
267,000
$ 347,000
$ 346,432 $
(568)
TOTAL EXPENDITURES
$
267,000
$ 347,000
$ 346,432 $
(568)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
40,000
$ (40,000)
$ (26,923) $
13,077
TOTAL OTHER FINANCE SOURCES (USES)
$
-
$ -
$ - $
-
NET CHANGE IN FUND BALANCE
$
40,000
$ (40,000)
$ (26,923) $
13,077
FUND BALANCE JANUARY 1
$
348,016
$ 348,016
$ 348,016 $
FUND BALANCE DECEMBER 31
$
388,016
$ 308,016
$ 321,093 $
13,077
Combining Statements & Schedules, 6-19
2008 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, 2008
Combining Statements & Schedules, 6-20
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Interest
$
$
$ 60
$ 60
TOTALREVENUES
$
$
$ 60
$ 60
TOTAL EXPENDITURES
$
$
$ -
$ -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
$
$ 60
$ 60
TOTAL OTHER FINANCE SOURCES (USES)
$
$
$ -
$ -
NET CHANGE IN FUND BALANCE
$
$
$ 60
$ 60
FUND BALANCE JANUARY 1
$
3,183
$ 3,183
$ 3,183
$
FUND BALANCE DECEMBER 31
$
3,183
$ 3,183
$ 3,243
$ 60
Combining Statements & Schedules, 6-20
2008 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, 2008
Combining Statements & Schedules, 6-21
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL FINAL
BASIS
OVER (UNDER)
REVENUES
Interest
$
$
$ 8,502
$ 8,502
TOTAL REVENUES
$
$
$ 8,502
$ 8,502
TOTAL EXPENDITURES
$
$
$ -
$ -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
$
$ 8,502
$ 8,502
TOTAL OTHER FINANCE SOURCES (USES)
$
$
$ -
$ -
NET CHANGE IN FUND BALANCE
$
$ 8,502
$ 8,502
$
FUND BALANCE JANUARY 1
$
448,000 $ 448,000
$ 448,000
$
FUND BALANCE DECEMBER 31
$
448,000 $ 448,000
$ 456,502
$ 8,502
Combining Statements & Schedules, 6-21
2008 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, 2008
Combining Statements & Schedules, 6-22
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Interest
$
$
$ 2,300
$ 2,300
TOTAL REVENUES
$
$
$ 2,300
$ 2,300
EXPENDITURES
Current:
Economic environment
$
$ 141,698
$ -
$ (141,698)
Capital outlay
77,505
-
1,979
1,979
TOTAL EXPENDITURES
$
77,505
$ 141,698
$ 1,979
$ (139,719)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$ (77,505)
$ (141,698)
$ 321
$ 142,019
OTHER FINANCING SOURCES (USES)
Transfer in
$
77,505
$ 77,505
$ -
$ (77,505)
TOTAL OTHER FINANCE SOURCES (USES)
$
77,505
$ 77,505
$ -
$ (77,505)
NET CHANGE IN FUND BALANCE
$
$ (64,193)
$ 321
$ 64,514
-
FUND BALANCE JANUARY 1
$
121,357
$ 121,357
$ 121,357
$
FUND BALANCE DECEMBER 31
$
121,357
$ 57,164
$ 121,678
$ 64,514
Combining Statements & Schedules, 6-22
2008 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, 2008
Combining Statements & Schedules, 6-23
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Taxes
$
35,000
$ 35,000
$ 70,000
$ 35,000
Interest
2,400
2,400
1,705
(695)
Miscellaneous revenues
1,500
1,500
-
(1,500)
TOTAL REVENUES
$
38,900
$ 38,900
$ 71,705
$ 32,805
EXPENDITURES
Current:
Economic environment
$
74,778
$ 88,004
$ 23,114
$ (64,890)
TOTAL EXPENDITURES
$
74,778
$ 88,004
$ 23,114
$ (64,890)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$ (35,878)
$ (49,104)
$ 48,591
$ 97,695
TOTAL OTHER FINANCE SOURCES (USES)
$
-
$ -
$ -
$ -
NET CHANGE IN FUND BALANCE
$ (35,878)
$ (49,104)
$ 48,591
$ 97,695
FUND BALANCE JANUARY 1
$
63,778
$ 63,778
$ 63,778
$
FUND BALANCE DECEMBER 31
$
27,900
$ 14,674
$ 112,369
$ 97,695
Combining Statements & Schedules, 6-23
2008 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, 2008
ACTUAL BUDGET TO GAAP
BUDGETED AMOUNTS BUDGETARY DIFFERENCES
ORIGINAL FINAL BASIS OVER (UNDER)
REVENUES
Taxes $ 3,868,600 $ 3,868,600 $ 3,805,277 $ (63,323)
Interest 100,800 100,800 52,637 (48,163)
TOTAL REVENUES $ 3,969,400 $ 3,969,400 $ 3,857,914 $ (111,486)
EXPENDITURES
Debt service:
Principal payment
Interest payment
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in
TOTAL OTHER FINANCE SOURCES (USES)
$ 1,600,000 $ 1,600,000 $ 1,599,551 $ (449)
2,669,400 2,669,400 2,664,188 (5,212)
$ 4,269,400 $ 4,269,400 $ 4,263,739 $ (5,661)
$ (300,000) $ (300,000) $ (405,825) $ (105,825)
$ 300,000 $ 300,000 $ 300,000 $
$ 300,000 $ 300,000 $ 300,000 $
NET CHANGE IN FUND BALANCE
$
- $
- $ (105,825) $ (105,825)
FUND BALANCE JANUARY 1
$
774,772 $
779,354 $ 779,354 $
FUND BALANCE DECEMBER 31
$
774,772 $
779,354 $ 673,529 $ (105,825)
Combining Statements & Schedules, 6-24
2008 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, 2008
Combining Statements & Schedules, 6-25
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Taxes
$
550,000
$ 550,000
$ 501,576
$ (48,424)
Interest
5,000
5,000
5,756
756
TOTAL REVENUES
$
555,000
$ 555,000
$ 507,332
$ (47,668)
EXPENDITURES
Current:
Economic environment
$
488,250
$ -
$ -
$
Debt service:
Principal payment
-
480,000
480,000
Interest payment
60,500
68,750
43,485
(25,265)
TOTAL EXPENDITURES
$
548,750
$ 548,750
$ 523,485
$ (25,265)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
6,250
$ 6,250
$ (16,153)
$ (22,403)
TOTAL OTHER FINANCE SOURCES (USES)
$
-
$ -
$ -
$
NET CHANGE IN FUND BALANCE
$
6,250
$ 6,250
$ (16,153)
$ (22,403)
FUND BALANCE JANUARY 1
$
613,560
$ 613,560
$ 613,560
$
FUND BALANCE DECEMBER 31
$
619,810
$ 619,810
$ 597,407
$ (22,403)
Combining Statements & Schedules, 6-25
2008 Comprehensive Annual Financial Report
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - MUNICIPAL FACILITIES CAPITAL IMPROVEMENT FUND
For the Year Ended December 31, 2008
City of Renton, Washington
EXPENDITURES
Current:
Economic environment
Capital outlay
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
$ 60,000 $ 78,780 $ 67,248 $ (11,532)
13,648,000 18,979,005 6,596,162 (12,382,843)
$ 13,708,000 $ 19,057,785 $ 6,663,410 $ (12,394,375)
$ (10,508,000) $ (14,023,785) $ (3,631,966) $ 10,391,819
$ 479,723 $ 1,379,418 $ 885,378 $ (494,040)
$ 479,723 $ 1,379,418 $ 885,378 $ (494,040)
$ (10,028,277) $ (12,644,367) $ (2,746,588) $ 9,897,779
$ 16,520,688 $ 16,520,688 $ 16,520,688 $ -
$ 6,492,411 $ 3,876,321 $ 13,774,100 $ 9,897,779
Combining Statements & Schedules, 6-26
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Taxes
$ 2,150,000 $
2,700,000 $
824,707
$ (1,875,293)
Intergovernmental revenues
300,000
300,000
266,806
(33,194)
Contributions
-
75,000
75,000
Interest
750,000
750,000
655,931
(94,069)
Miscellaneous revenues
-
1,209,000
1,209,000
TOTAL REVENUES
$ 3,200,000 $
5,034,000 $
3,031,444
$ (2,002,556)
EXPENDITURES
Current:
Economic environment
Capital outlay
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
$ 60,000 $ 78,780 $ 67,248 $ (11,532)
13,648,000 18,979,005 6,596,162 (12,382,843)
$ 13,708,000 $ 19,057,785 $ 6,663,410 $ (12,394,375)
$ (10,508,000) $ (14,023,785) $ (3,631,966) $ 10,391,819
$ 479,723 $ 1,379,418 $ 885,378 $ (494,040)
$ 479,723 $ 1,379,418 $ 885,378 $ (494,040)
$ (10,028,277) $ (12,644,367) $ (2,746,588) $ 9,897,779
$ 16,520,688 $ 16,520,688 $ 16,520,688 $ -
$ 6,492,411 $ 3,876,321 $ 13,774,100 $ 9,897,779
Combining Statements & Schedules, 6-26
2008 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, 2008
Combining Statements & Schedules, 6-27
ACTUAL
BUDGET TO GAAP
BUDGETED
AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Licenses and permits
$
1,800,000
$ 1,800,000
$ 1,956,165
$ 156,165
Intergovernmental revenues
22,827,095
35,730,800
17,358,161
(18,372,639)
TOTAL REVENUES
$
24,627,095
$ 37,530,800
$ 19,314,326
$ (18,216,474)
EXPENDITURES
Capital outlay
$
29,928,671
$ 46,353,715
$ 17,991,860
$ (28,361,855)
TOTAL EXPENDITURES
$
29,928,671
$ 46,353,715
$ 17,991,860
$ (28,361,855)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$ (5,301,576)
$ (8,822,915)
$ 1,322,466
$ 10,145,381
OTHER FINANCING SOURCES (USES)
Transferin
$
2,608,229
$ 6,035,000
$ 2,868,229
$ (3,166,771)
Transfer (out)
-
(75,000)
(75,000)
-
Sale of capital assets
-
19,908
19,908
TOTAL OTHER FINANCE SOURCES (USES)
$
2,608,229
$ 5,960,000
$ 2,813,137
$ (3,146,863)
NET CHANGE IN FUND BALANCE
$ (2,693,347)
$ (2,862,915)
$ 4,135,603
$ 6,998,518
FUND BALANCE JANUARY 1
$
4,355,803
$ 4,355,803
$ 4,355,803
$
FUND BALANCE DECEMBER 31
$
1,662,456
$ 1,492,888
$ 8,491,406
$ 6,998,518
Combining Statements & Schedules, 6-27
2008 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, 2008
Combining Statements & Schedules, 6-28
ACTUAL
BUDGET TO GAAP
BUDGETED AMOUNTS
BUDGETARY
DIFFERENCES
ORIGINAL
FINAL
BASIS
OVER (UNDER)
REVENUES
Taxes
$
$
1,227,210
$ 131,034
$ (1,096,176)
Licenses and permits
268,000
268,000
Intergovernmental revenues
847,849
500,000
(347,849)
Charges for services
978,152
700,202
(277,950)
Interest
-
34
34
TOTAL REVENUES
$
$
3,321,211
$ 1,599,270
$ (1,721,941)
EXPENDITURES
Current:
Economic environment
$
$
56,000
$ 4,218
$ (51,782)
Capital outlay
2,166,000
1,912,775
(253,225)
Debt service:
Interest payment
50,000
50,000
21,574
(28,426)
TOTAL EXPENDITURES
$
50,000 $
2,272,000
$ 1,938,567
$ (333,433)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$ (50,000) $
1,049,211
$ (339,297)
$ (1,388,508)
OTHER FINANCING SOURCES (USES)
Transfer (out)
$
$ (24,000) $
$ (24,000)
TOTAL OTHER FINANCE SOURCES (USES)
$
$ (24,000) $
$ 24,000
NET CHANGE IN FUND BALANCE
$ (50,000) $
1,025,211
$ (339,297)
$ (1,364,508)
FUND BALANCE JANUARY 1
$
541,655 $
541,655
$ 541,655
$
FUND BALANCE DECEMBER 31
$
491,655 $
1,566,866
$ 202,358
$ (1,364,508)
Combining Statements & Schedules, 6-28
2008 Comprehensive Annual Financial Report
COMBINING STATEMENT OF NET ASSETS
NON -MAJOR ENTERPRISE FUNDS
December 31, 2008
Page 1 of 2
ASSETS
Current assets:
Cash & cash equivalents
Investments at fair value
Receivables (net of allowances):
Customer accounts
Interest - investments
Due from other funds
Due from other governmental units
Inventory of materials and supplies
Total current assets
Restricted assets:
Investments at fair value
Total restricted assets
Capital assets (net)
Deferred charges and other assets
TOTAL ASSETS
City of Renton, Washington
TOTAL
NON -MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
$ 545,204
$
533,497
$
1,078,701
500,000
308,643
808,643
9,694
30,700
40,394
17,978
52,735
70,713
5,269
-
5,269
50,468
-
50,468
-
146,531
146,531
$ 1,128,613
$
1,072,106
$
2,200,719
$ -
$
441,358
$
441,358
$ -
$
441,358
$
441,358
$ 10,024,768
$
9,059,240
$
19,084,008
-
31,163
31,163
$ 11,153,381
$
10,603,867
$
21,757,248
Combining Statements & Schedules, 6-29
2008 Comprehensive Annual Financial Report City of Renton, Washington
COMBINING STATEMENT OF NET ASSETS
NON -MAJOR ENTERPRISE FUNDS
December 31, 2008
Page 2 of 2
Combining Statements & Schedules, 6-30
TOTAL
NON -MAJOR
AIRPORT
GOLF COURSE
ENTERPRISE FUNDS
LIABILITIES
Current liabilities:
Accounts payable
$
160,974
$ 63,920
$ 224,894
Accrued employee benefits payable
19,241
30,987
50,228
Accrued taxes payable
24,663
11,387
36,050
Custodial Accounts
-
125,149
125,149
Deferred revenue
88,113
-
88,113
Operating leases payable
-
31,187
31,187
Total current liabilities
$
292,991
$ 262,630
$ 555,621
Liabilities payable from restricted assets:
Revenue bonds payable - current
$
-
$ 310,000
$ 310,000
Total liabilities payable from restricted assets
$
$ 310,000
$ 310,000
Long-term liabilities:
Revenue bonds payable
$
$ 2,200,000
$ 2,200,000
Unamortized discounts on revenue bonds
(212,188)
(212,188)
Accrued employee wages and benefits payable
26,199
63,675
89,874
Operating leases payable
-
23,993
23,993
Total long-term liabilities
$
26,199
$ 2,075,480
$ 2,101,679
TOTAL LIABILITIES
$
319,190
$ 2,648,110
$ 2,967,300
NET ASSETS
Investment in capital assets,
net of related debt
$
10,024,768
$ 6,737,435
$ 16,762,203
Restricted
441,358
441,358
Unrestricted
809,423
776,964
1,586,387
TOTAL NET ASSETS
$
10,834,191
$ 7,955,757
$ 18,789,948
Combining Statements & Schedules, 6-30
2008 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, 2008
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
TOTAL
NON -MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
OPERATING REVENUES:
Charges for services $ 1,086,254 $ 2,262,841 $ 3,349,095
TOTAL OPERATING REVENUES $ 1,086,254 $ 2,262,841 $ 3,349,095
OPERATING EXPENSES:
Operations and maintenance
$ 671,011
$ 1,174,615 $
1,845,626
Benefit payments
135,813
283,871
419,684
Professional services
48,452
-
48,452
Administrative and general
356,166
360,824
716,990
Insurance
52,020
8,500
60,520
Taxes
129
-
129
Depreciation
470,301
337,670
807,971
TOTAL OPERATING EXPENSES
$ 1,733,892
$ 2,165,480 $
3,899,372
OPERATING INCOME (LOSS)
$ (647,638)
$ 97,361 $
(550,277)
NON-OPERATING REVENUES(EXPENSES):
Interest revenues
$ 24,488
$ 48,028 $
72,516
Gain (loss) on sale of capital assets
-
(6,749)
(6,749)
Other non-operating revenues(expenses;
14,215
1,504
15,719
Interest expense
-
(134,594)
(134,594)
Amortization of debt discount and expense
-
(34,764)
(34,764)
NON-OPERATING REVENUE NET OF EXPENSES
$ 38,703
$ (126,575) $
(87,872)
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS
$ (608,935)
$ (29,214) $
(638,149)
Capital Contributions
$ 179,292
$ - $
179,292
CHANGE IN NET ASSETS
$ (429,643)
$ (29,214) $
(458,857)
NET ASSETS, JANUARY 1
$ 11,263,834
$ 7,984,971 $
19,248,805
NET ASSETS, DECEMBER 31
$ 10,834,191
$ 7,955,757 $
18,789,948
Combining Statements & Schedules, 6-31
2008 Comprehensive Annual Financial Report
City of Renton, Washington
STATEMENT OF CASH FLOWS
NON -MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2008
Page 1 of 2
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services
Cash paid to suppliers for goods & services
Cash paid to employees
Other operating receipts
Other non-operating receipts
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets
Principal payments on debt
Interest payments on debt
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on investments
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS
CASH & CASH EQUIVALENTS, JANUARY 1
CASH, RESTRICTED CASH ,& CASH
EQUIVALENTS, DECEMBER 31
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
TOTAL
NON -MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
$ 1,134,361 $
2,287,543 $
3,421,904
(990,916)
(1,604,659)
(2,595,575)
(131,755)
(275,593)
(407,348)
(38,684)
(38,684)
14,215
(139,839)
(125,624)
$ (12,779) $
267,452 $
254,673
$ (228,759) $
(66,235) $
(294,994)
(310,000)
(310,000)
3,098
3,098
$ (228,759) $ (373,137) $ (601,896)
$ 12,955 $ 9,188 $ 22,143
$ 12,955 $ 9,188 $ 22,143
$ (228,583) $ (96,497) $ (325,080)
$ 773,787 $ 629,994 $ 1,403,781
$ 545,204 $ 533,497 $ 1,078,701
Combining Statements & Schedules, 6-32
2008 Comprehensive Annual Financial Report
STATEMENT OF CASH FLOWS
NON -MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2008
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
customer deposits
Increase(decrease)in
deferred revenues
Increase (decrease) in accrued
employee leave benefits
Total adjustments
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
City of Renton, Washington
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
TOTAL
NON -MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
$ (647,638) $
97,361
$ (550,277)
$ 470,301 $
337,670
$ 807,971
14,215
(139,839)
(125,624)
(7,471)
26,023
18,552
(38,684)
-
(38,684)
(54,463)
(54,463)
-
14,636
14,636
136,862
(22,226)
114,636
-
12
12
55,578
-
55,578
4,058
8,278
12,336
$ 634,859 $
170,091
$ 804,950
$ (12,779) $
267,452
$ 254,673
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Depreciation $ 470,301 $ 337,670 $ 807,971
Net amort. bond prem. discount & bond issue costs - 34,764 34,764
Contributions of capital assets 179,292 - 179,292
Combining Statements & Schedules, 6-33
2008 Comprehensive Annual Financial Report
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2008
Page 1 of 2
City of Renton, Washington
Combining Statements & Schedules, 6-34
TOTAL
EQUIPMENT
INSURANCE
INTERNAL
RENTAL
FUND
SERVICE FUNDS
ASSETS
Current assets:
Cash & cash equivalents
$
2,311,623
$ 7,154,795
$ 9,466,418
Investments at fair value
1,650,000
9,644,461
11,294,461
Receivables (net of allowances):
Customer accounts
3,286
13,403
16,689
Interest - investments
172,474
600,454
772,928
Due from other governmental units
7,377
-
7,377
Prepayments
139,911
457,074
596,985
Total current assets
$
4,284,671
$ 17,870,187
$ 22,154,858
Property, plant, and equipment:
Capital assets (net)
$
11,574,644
$ -
$ 11,574,644
Total property, plant, and equipment
$
11,574,644
$
$ 11,574,644
TOTAL ASSETS
$
15,859,315
$ 17,870,187
$ 33,729,502
Combining Statements & Schedules, 6-34
2008 Comprehensive Annual Financial Report City of Renton, Washington
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2008
Page 2 of 2
Combining Statements & Schedules, 6-35
TOTAL
EQUIPMENT
INSURANCE
INTERNAL
RENTAL
FUND
SERVICE FUNDS
LIABILITIES
Current liabilities:
Accounts payable
$
145,741 $
337,088 $
482,829
Due to other funds
-
923
923
Accrued employee benefits payable
32,925
19,946
52,871
Accrued taxes payable
(405)
-
(405)
Total current liabilities
$
178,261 $
357,997—$
536,218
Long-term liabilities:
Accrued employee wages and benefits payable
$
192,682 $
731,248 $
923,930
Claims incurred but not reported
-
2,926,675
2,926,675
Total long-term liabilities
$
192,682 $
3,657,923 $
3,850,605
TOTAL LIABILITIES
$
370,943 $
4,015,880 $
4,386,823
NET ASSETS
Investment in capital assets,
Net of related debt
$
11,574,644 $
- $
11,574,644
Unrestricted
3,913,728
13,854,307
17,768,035
TOTAL NET ASSETS
$
15,488,372 $
13,854,307 $
29,342,679
Combining Statements & Schedules, 6-35
2008 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, 2008
Combining Statements & Schedules, 6-36
TOTAL
EQUIPMENT
INSURANCE
INTERNAL
RENTAL
FUND
SERVICE FUNDS
OPERATING REVENUES:
Charges for services
$
8,525,692 $
2,653,273 $
11,178,965
Other operating revenues
-
11,498,439
11,498,439
TOTAL OPERATING REVENUES
$
8,525,692 $
14,151,712 $
22,677,404
OPERATING EXPENSES:
Operations and maintenance
$
2,790,860 $
239,649 $
3,030,509
Benefit payments
1,783,211
10,458,876
12,242,087
Professional services
400,419
509,366
909,785
Administrative and general
1,907,393
137,597
2,044,990
Insurance
251,430
965,716
1,217,146
Depreciation
517,357
-
517,357
TOTAL OPERATING EXPENSES
$
7,650,670 $
12,311,204 $
19,961,874
OPERATING INCOME (LOSS)
$
875,022 $
1,840,508 $
2,715,530
NON-OPERATING REVENUES (EXPENSES):
Intergovernmental revenues
$
- $
19,675 $
19,675
Interest revenues
182,726
565,535
748,261
Gain (loss) on sale of capital assets
45,045
-
45,045
Other non-operating revenues (expenses)
336,355
577,668
914,023
Interest expense
(22,700)
-
(22,700)
NON-OPERATING REVENUE NET OF EXPENSE
$
541,426 $
1,162,878 $
1,704,304
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS
$
1,416,448 $
3,003,386 $
4,419,834
Transfers in (out)
$
317,000 $
(60,000) $
257,000
CHANGE IN NET ASSETS
$
1,733,448 $
2,943,386 $
4,676,834
NET ASSETS, JANUARY 1
$
13,754,924 $
10,910,921 $
24,665,845
NET ASSETS, DECEMBER 31
$
15,488,372 $
13,854,307 $
29,342,679
Combining Statements & Schedules, 6-36
2008 Comprehensive Annual Financial Report
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2008
Page 1 of 2
City of Renton, Washington
Combining Statements & Schedules, 6-37
TOTAL
EQUIPMENT
INSURANCE
INTERNAL
RENTAL
FUND
SERVICE FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services
$
8,524,299 $
14,169,279 $
22,693,578
Cash paid to suppliers for goods & services
(3,816,789)
677,953
(3,138,836)
Cash paid to employees
(1,733,400)
(10,404,518)
(12,137,918)
Other operating receipts
(1,352,048)
(2,338,863)
(3,690,911)
Other non-operating receipts
(232,432)
-
(232,432)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
$
1,389,630 $
2,103,851 $
3,493,481
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds
$
- $
(60,0001$
(60,000)
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES
$
$
(60,000) $
(60,000)
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets
$
(4,100,399)1$
$
(4,100,399)
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES
$
(4,100,399)1$
$
(4,100,399)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for investments
$
1,853,828 $
1,586,898 $
3,440,726
Interest on investments
80,953
232,004
312,957
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES
$
1,934,781 $
1,818,902 $
3,753,683
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS
$
(775,988) $
3,862,753 $
3,086,765
CASH & CASH EQUIVALENTS, JANUARY 1
$
3,087,611 $
3,292,042 $
6,379,653
CASH & CASH EQUIVALENTS, DECEMBER 31
$
2,311,623 $
7,154,795 $
9,466,418
Combining Statements & Schedules, 6-37
2008 Comprehensive Annual Financial Report
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2008
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
Depreciation & amortization
City of Renton, Washington
TOTAL
EQUIPMENT INSURANCE INTERNAL
RENTAL FUND SERVICE FUNDS
$ 875,022 $
1,840,508 $
2,715,530
517,357
-
517,357
358,700
597,343
956,043
(1,393)
17,567
16,174
4,953
-
4,953
(11,509)
(209,650)
(221,159)
(410,080)
(406,848)
(816,928)
(4,740)
923
(3,817)
61,320
264,008
325,328
$ 514,608 $
263,343 $
777,951
$ 1,389,630 $
2,103,851 $
3,493,481
517,357 517,357
Combining Statements & Schedules, 6-38
2008 Comprehensive Annual Financial Report
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND - SPECIAL DEPOSIT
For the Year Ended December 31, 2008
Page 1 of 1
City of Renton, Washington
Combining Statements & Schedules, 6-39
BEGINNING
ENDING
BALANCE
DEBITS
CREDITS
BALANCE
ASSETS
Cash
$
728,049
$
592,653
480,236
$
840,466
TOTAL ASSETS
$
728,049
$
592,653
$ 480,236
$
840,466
LIABILITIES
Vouchers & contacts payable
$
62,166
$
453,863
423,633
$
31,936
Deposits payable
665,883
442,518
585,165
808,530
TOTAL LIABILITIES
$
728,049
$
896,381
$ 1,008,798
$
840,466
Combining Statements & Schedules, 6-39
2008 Comprehensive Annual Financial Report
This page intentionally left blank.
City of Renton, Washington
Combining Statements & Schedules, 6-40
2007 Comprehensive Annual Financial Report City of Renton, Washington
STATISTICAL SECTION
December 31, 2008
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
City of Renton, Washington
2008 Comprehensive Annual Financial Report
This page intentionally left blank.
Statistical Section, 7-2
2008 Comprehensive Annual Financial Report
City of Renton, Washington
TABLE 1
NET ASSETS BY COMPONENT
LAST FIVE FISCAL YEARS
(Accrual basis of accounting)
FISCAL YEAR
2004 2005 2006 2007 2008
Governmental activities
$ 359,173,601
$ 375,125,039
$ 391,480,495
$ 421,232,714
$
Invested in capital assets, net of related debt
$ 195,282,055
$ 203,297,293
$ 209,964,556
$ 232,714,563 $
353,197,782
Restricted
21,460,395
28,578,305
42,748,022
32,648,993
33,294,987
Unrestricted
25,746,196
29,272,573
29,340,290
32,075,613
34,160,010
Total governmental activities net assets
$ 242,488,646
$ 261,148,171
$ 282,052,868
$ 297,439,169 $
420,652,779
Business -type activities
$ 359,173,601
$ 375,125,039
$ 391,480,495
$ 421,232,714
$
Invested in capital assets, net of related debt
$ 163,891,546
$ 171,827,746
$ 181,515,939
$ 188,518,151 $
202,255,997
Restricted
3,555,690
3,555,690
25,097,253
3,586,667
4,171,525
Unrestricted
21,612,156
21,541,563
19,357,695
17,973,237
17,430,207
Total business -type activities net assets
$ 189,059,392
$ 196,924,999
$ 225,970,887
$ 210,078,055 $
223,857,729
Primary government
Invested in capital assets, net of related debt
$ 359,173,601
$ 375,125,039
$ 391,480,495
$ 421,232,714
$
555,453,779
Restricted
25,016,085
32,133,995
67,845,275
36,235,660
$
37,466,512
Unrestricted
47,358,352
50,814,136
48,697,985
50,048,850
$
51,590,217
Total primary government net assets
$ 431,548,038
$ 458,073,170
$ 508,023,755
$ 507,517,224
$
644,510,508
'First Year of Net Assets by Component
Source : City of Renton, Finance and IS Department
Statistical Section, 7-3
2008 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
Source : City of Renton, Finance & IS Department
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
2004 2005
City of Renton, Washington
FISCAL YEAR
2006 2007 2008
$ 22,144,567
$ 21,137,856
$ 19,977,086
$ 29,112,970
$ 12,010,422
1,340,655
1,380,816
1,434,134
1,845,031
1,761,665
28,647,443
29,496,791
30,749,762
36,213,120
46,289,454
2,278,445
2,208,340
2,618,832
2,749,417
3,333,471
6,797,356
4,183,880
15,798,138
11,237,287
13,675,581
5,519,929
5,899,796
6,372,118
6,880,687
6,823,426
228,966
300,171
295,072
301,495
325,066
10,303,074
9,744,692
9,695,924
11,036,931
17,025,800
1,627,581
1,710,346
1,772,370
2,594,784
2,663,436
$ 78,888,016
$ 76,062,688
$ 88,713,436
$ 101,971,722
$ 103,908,321
$ 23,347,678 $ 25,884,227 $ 27,220,132 $ 28,657,468 $ 32,738,366
936,305 1,226,810 1,196,363 1,396,054 1,733,894
8,558,441 9,327,525 9,706,016 10,606,560 11,518,047
1,933,113 2,132,077 2,056,874 2,277,454 2,334,838
$ 34,775,537 $ 38,570,639 $ 40,179,385 $ 42,937,536 $ 48,325,145
$ 113,663,553 $ 114,633,327 $ 128,892,821 $ 144,909,258 $ 152,233,466
$ 15,579,366 $
17,525,244
$ 21,852,465 $
23,163,645
$ 5,614,638
1,531,773
697,883
831,485
1,169,581
2,420,913
200,149
247,235
517,151
591,586
550,773
837,027
894,750
400,798
999,484
864,581
1,916,862
1,660,698
1,628,154
1,432,215
2,165,538
4,236,596
4,516,899
4,368,399
7,857,186
4,236,983
1,507,387
1,558,458
1,742,071
1,649,960
1,739,055
6,213,791
4,979,601
4,596,836
5,265,737
9,570,931
1,745,718
1,227,503
5,909,870
4,940,471
18,109,124
$ 33,768,669 $
33,308,271
$ 41,847,229 $
47,069,865
$ 45,272,536
$ 38,917,114 $ 40,029,830 $ 40,056,079 $ 45,403,349 $ 44,651,684
112,616 196,974 77,688 243,537 264,784
6,583,241 5,101,699 6,317,203 1,761,802 6,888,975
$ 45,612,971 $ 45,328,503 $ 46,450,970 $ 47,408,688 $ 51,805,443
$ 79,381,640 $ 78,636,774 $ 88,298,199 $ 94,478,553 $ 97,077,979
$ (45,119,347) $ (42,754,417) $ (46,866,207) $ (54,901,857) $ (58,635,785)
10,837,434 6,757,864 6,271,585 4,471,152 3,480,298
$ (34,281,913) $ (35,996,553) $ (40,594,622) $ (50,430,705) $ (55,155,487)
Statistical Section, 7-4
2008 Comprehensive Annual Financial Report
GENERAL REVENUES AND OTHER CHANGES
IN NET ASSETS
Governmental activities:
Taxes
Property taxes
Timber taxes
Retail sales taxes
Business taxes
Excise taxes
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 and 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
2004 2005 2006 2007 2008
$ 19,578,390 $ 21,523,818 $ 23,600,131 $ 23,106,578 $ 29,381,036
18,281,949
18,910,823
20,869,595
22,749,831
23,190,076
9,957,129
10,643,068
11,219,303
11,962,879
14,945,173
6,751,264
6,938,265
7,718,945
8,236,876
4,362,945
6,048
49
3,799
33,949
6,477
1,291,669
1,449,001
3,251,975
3,465,517
2,419,260
4,346,619
1,958,217
689,243
1,218,889
2,104,133
(10,304)
(9,300)
(68,446)
-
110,000
$ 60,202,764 $
61,413,941 $
67,284,545 $
70,774,519
$ 76,519,100
$ 270,605 $
458,797
$ 881,486 $
1,041,576
$ 1,120,342
119,455
639,646
282,808
135,986
85,493
10,304
9,300
68,446
-
(110,000)
$ 400,364 $
1,107,743
$ 1,232,740 $
1,177,562
$ 1,095,835
$ 60,603,128 $
62,521,684
$ 68,517,285 $
71,952,081
$ 77,614,935
$ 15,083,417 $ 18,659,524 $ 20,418,338 $ 15,872,662 $ 17,883,315
11,237,798 7,865,607 7,504,325 5,648,714 4,576,133
$ 26,321,215 $ 26,525,131 $ 27,922,663 $ 21,521,376 $ 22,459,448
Statistical Section, 7-5
2008 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
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
City of Renton, Washington
All other governmental funds
Reserved
$ -
FISCAL YEAR
$ 920,000
$ 1,260,000 $
1999
2000
2001
2002
2003
Reserved $ 83,000
$ 311,673
$ 318,053
$ 83,000
$ 83,000
Unreserved 5,381,222
8,025,332
6,428,315
3,920,136
6,758,364
Total general fund $ 5,464,222
$ 8,337,005
$ 6,746,368
$ 4,003,136
$ 6,841,364
All other governmental funds
Reserved
$ -
$ -
$ 920,000
$ 1,260,000 $
880,000
Unreserved, reported in:
Special revenue funds
2,890,947
3,898,265
4,938,021
3,361,529
3,985,917
Debt service funds
2,987,015
2,653,495
2,546,129
2,030,335
1,916,243
Capital project funds
21,682,591
23,570,741
29,133,681
33,742,638
22,628,512
Total all other governmental funds
$ 27,560,553
$ 30,122,501
$ 37,537,831
$ 40,394,502 $
29,410,672
Source : City of Renton, Finance and IS Department
Statistical Section, 7-6
2008 Comprehensive Annual Financial Report
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
City of Renton, Washington
TABLE 3
FUND BALANCE OF GOVERNMENT FUNDS
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Page 2 of 2
All other governmental funds
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
All other governmental funds
Reserved
$ 500,000 $
240,000
FISCAL YEAR
$ 975,000
$ 1,000,000
Unreserved, reported in:
2004
2005
2006
2007
2008
General fund
3,238,246
2,929,692
4,243,189
2,616,596
2,806,667
Reserved
$ 108,742
$ 8,000
$ 8,000
$ 8,000
$ 8,000
Unreserved
8,603,003
9,189,871
10,737,097
16,474,384
13,509,097
Total general fund
$ 8,711,745
$ 9,197,871
$ 10,745,097
$ 16,482,384
$ 13,517,097
All other governmental funds
Reserved
$ 500,000 $
240,000
$ 63,900
$ 975,000
$ 1,000,000
Unreserved, reported in:
Special revenue funds
3,238,246
2,929,692
4,243,189
2,616,596
2,806,667
Debt service funds
1,486,894
2,752,445
3,068,587
1,392,915
1,270,936
Capital project funds
26,202,437
27,890,457
42,152,437
29,057,397
29,217,384
Total all other governmental funds
$ 31,427,577 $
33,812,594
$ 49,528,113
$ 34,041,908
$ 34,294,987
Statistical Section, 7-7
2008 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
Source : City of Renton, Finance & IS DepE
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
FISCAL YEAR
1999 2000 2001 2002 2003
$ 44,397,793 $ 47,827,013 $ 50,218,530 $ 49,901,849 $ 53,722,322
3,780,303
4,562,892
4,065,518
4,229,501
4,226,883
5,637,817
6,793,084
6,129,103
6,212,359
4,533,544
7,157,860
7,805,409
7,301,538
7,777,778
6,016,704
831,327
937,689
993,093
1,043,199
1,055,564
-
-
-
-
3,482,110
689,931
352,648
333,056
312,908
295,673
91,383
64,092
191,877
118,103
255,102
2,129,455
2,307,978
2,583,931
1,073,538
1,081,420
682,625
727,465
1,231,574
1,198,846
40,314
$ 65,398,494
$ 71,378,270
$ 73,048,220
$ 71,868,081
$ 74,709,636
$ 10,058,875 $ 10,858,538 $ 11,193,462 $ 12,523,577 $ 13,283,955
21,300,403
22,889,748
23,569,864
24,924,380
26,029,354
1,892,541
1,769,642
1,878,956
1,898,665
2,015,562
10,706,833
10,330,362
13,885,329
10,622,373
4,461,387
3,814,967
4,337,239
4,484,526
4,479,582
4,613,587
8,486
8,599
6,756
11,445
10,368
6,166,358
6,606,662
7,263,056
7,382,069
7,585,936
11,002,950
7,450,837
5,359,801
10,532,479
21,089,534
2,707,994
2,481,026
2,086,447
1,849,269
1,417,042
1,345,588
1,205,281
882,748
1,382,717
1,833,102
$ 69,004,995
$ 67,937,934
$ 70,610,945
$ 75,606,556
$ 82,339,827
$ (3,606,501) $ 3,440,336 $ 2,437,275 $ (3,738,475) $ (7,630,191)
$ 4,670,101 $ 3,694,498 $ 6,850,944 $ 9,441,451 $ 3,511,700
(4,587,778) (3,662,809) (8,873,294) (10,009,962) (3,551,700)
38,990 - 6,023,484 3,879,038
448,000 823,000 363,800 860,000
(448,000) (823,000) (363,800) (860,000)
563,283
1,403,688
61,685
104,825
171,249
$ 684,596 $
1,435,377 $
4,062,819 $
3,415,352 $
131,249
$ (2,921,905) $ 4,875,713 $ 6,500,094 $ (323,123) $ (7,498,942)
Source : City of Renton, Finance and IS Department
6.99% 6.09% 4.55% 4.97% 5.31%
Statistical Section, 7-8
2008 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
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines
Interfund revenues
Special assessments
Contributions
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Judicial
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
FISCAL YEAR
2004 2005 2006 2007 2008
$
55,344,506
$58,794,081
$64,005,567
$
66,698,876
$
72,514,388
4,329,086
4,686,608
4,962,507
5,828,230
4,975,585
7,570,570
5,687,169
9,769,225
9,791,830
27,549,621
6,593,153
5,563,289
6,543,289
10,048,879
7,145,950
1,008,984
731,286
906,685
1,150,079
2,002,854
3,638,574
3,796,042
2,843,147
3,352,411
3,072,526
20,852
23,340
511,932
51,723
-
249,938
317,600
214,387
353,582
135,000
1,059,886
1,060,353
2,570,682
2,486,889
1,740,035
122,799
569,881
223,908
86,322
1,273,359
$
79,938,348
$ 81,229,649
$ 92,551,329
$
99,848,821
$
120,409,318
$
13,660,095
$ 14,382,634
$ 13,972,592
$
14,597,355
$
15,094,140
1,761,665
27,462,613
29,031,626
31,157,303
35,583,500
45,530,208
2,201,777
2,190,228
2,609,452
2,764,563
3,123,883
4,615,345
4,711,924
5,097,449
6,403,358
6,332,006
4,947,080
5,123,024
5,519,219
5,896,589
6,673,681
11,723
12,700
9,231
13,818
16,459
8,563,967
8,876,250
9,933,854
10,830,224
11,119,073
13,246,669
11,438,104
21,117,525
29,320,023
28,520,453
1,477,579
1,375,738
1,503,350
1,565,904
2,079,551
1,763,893
1,713,525
2,129,656
2,646,623
2,729,247
$
77,950,741
$ 78,855,753
$ 93,049,631
$
109,621,957
$
122,980,366
Excess of revenues
over(under)expenditures $ 1,987,607 $ 2,373,896 $ (498,302) $ (9,773,136) $ (2,571,048)
OTHER FINANCING SOURCES (USES)
Transfers in $ 6,563,978 $ 5,476,360 $ 2,962,895 $ 5,782,988 $ 4,053,607
Transfers out (7,764,278) (5,443,660) (3,705,341) (5,782,988) (4,200,607)
Other financing sources (uses)
Proceeds of long-term debt - 18,490,029
Interfund loan proceeds -
Interfund loan repayments -
Funds remitted to bond trustee -
Capital leases - -
Sale of capital assets 117,328 464,547 13,464 24,218 20,643
Total other financing
sources (uses) $ (1,082,972) $ 497,247 $ 17,761,047 $ 24,218 $ (126,357)
Net change in fund balances $ 904,635 $ 2,871,143 $ 17,262,745 $ (9,748,918) $ (2,697,405)
Debt service as a percentage of noncapital
expenditures 5.01% 4.58% 5.05% 5.25% 5.09%
Statistical Section, 7-9
2008 Comprehensive Annual Financial Report
$80
$70
$60
w $50
c
g $40
$30
$20
$10
$0
TABLE 5
GENERAL GOVERNMENT TAX REVENUE BY SOURCE
LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting)
TAX REVENUES BY SOURCE
1999-2008
City of Renton, Washington
■ Delinquent Tax
O Excise Tax
MAdmission/Utility Tax
OSales Tax
OTimber Tax
■Property Tax
Source: City of Renton, Finance and IS Department
Statistical Section, 7-10
1999 2000
2001 2002
2003 2004 2005
2006 2007
2008
PENALTY/
ADMISSION /
INTEREST
FISCAL
PROPERTY
TIMBER
SALES
UTILITY
EXCISE
DELINQUENT
YEAR
TAX
TAX
TAX
TAX
TAX
TAX
TOTAL
1999
$ 15,659,424
N/A
$ 15,282,981
$ 8,289,865
$ 4,831,792
$ 1,217
$ 44,065,280
2000
16,397,638
N/A
16,585,478
9,788,167
4,724,682
8,462
47,504,428
2001
16,794,636
N/A
16,724,787
11,105,722
5,066,122
1,939
49,693,206
2002
18,373,237
N/A
16,431,456
9,798,260
4,711,446
4,404
49,318,803
2003
19,587,986
N/A
17,334,831
10,895,131
5,449,877
5,415
53,273,240
2004
19,886,805
N/A
18,281,949
9,957,130
6,751,265
6,048
54,883,197
2005
21,826,229
N/A
18,910,822
10,643,068
6,938,264
49
58,318,433
2006
23,600,131
N/A
20,869,596
11,219,302
7,718,945
3,799
63,411,773
2007
23,106,578
N/A
22,749,831
11,962,879
8,236,876
33,949
66,090,113
2008
29,381,036
-
23,190,076
14,945,173
4,362,945
6,477
71,885,707
Source: City of Renton, Finance and IS Department
Statistical Section, 7-10
2008 Comprehensive Annual Financial Report
TABLE 6
PRINCIPAL PROPERTY TAX PAYERS
December 31, 2008
2008
% OF TOTAL
IAXABLE' TAXABLE
ASSESSED ASSESSED
TAXPAYER VALUE RANK VALUE
Boeing
$ 842,430,440
Paccar
111,316,800
Puget Sound Energy-Elec/Gas
98,478,828
AMB Property Corp.
61,191,200
Transwestern Harvest Lakeshore
55,735,200
Providence Health
53,706,700
Fred Meyer Stores Inc
51,138,403
Axis Grand Holdings
44,625,000
(formerly HSC Real Estate Inc.)
0.33%
BRE Properties
40,500,000
ECI Two WTC LLC (WTCTPI LLC)
37,433,000
University Street Properties
100.00%
Renton Building 1-7
6
US West
Renton Village Association
Bay Apartment Communities
0.39%
Rosche One Int
9
All Others
11,768,638,214
Total Assessed Valuation
$ 13,165,193,785
Source: 'King County Department of Assessments
City of Renton, Washington
0
% OF TOTAL
TAXABLE TAXABLE
ASSESSED ASSESSED
VALUE RANK VALUE
1
6.40%
$ 761,498,607
1
17.88%
2
0.85%
99,854,551
2
2.34%
3
0.75%
87,316,949
3
2.05%
4
0.46%
0.33%
89.39% 3,124,863,864
5
0.42%
100.00%
6
0.41%
7
0.39%
15,858,400
9
0.37%
8
0.34%
9
0.31%
10
0.28%
45,485,400
4
1.07%
43,782,400
5
1.03%
30,407,479
6
0.71%
17,781,100
7
0.42%
17,500,000
8
0.41%
14,152,000
10
0.33%
89.39% 3,124,863,864
73.38%
100.00% $ 4,258,500,750
100.00%
Statistical Section, 7-11
2008 Comprehensive Annual Financial Report
12,000
10,000
0
8,000
m
3
rs
> 6,000
d
N
H 4,000
2,000
TABLE 7
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Page 1 of 2
Total Taxable Assessed Value
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Year
City of Renton, Washington
FISCAL
YEAR
REAL PROPERTY'
PERSONAL PROPERTY
ENDED
RESIDENTIAL
COMMERCIAL
DECEMBER31
PROPERTY
PROPERTY
OTHER
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
2008
4,991,068,500
4,292,739,750
828,746,994
'2000 is the first year when breakdown is available. Source is from TaxTools 4.1 Tax Database
2A 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
2008 Comprehensive Annual Financial Report
4.000
3.500
3.000
2.500
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
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Year
FISCAL
TOTAL
YEAR
PERSONAL PROPERTY
TOTAL
DIRECT
ENDED
TAX EXEMPT
ASSESSED
TAX
DECEMBER31
REAL PROPERTY 3
VALUE
RATE
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
2008
N/A
10,112,555,244
2.624
Statistical Section, 7-13
2008 Comprehensive Annual Financial Report
4.00000
3.50000
3.00000
2.50000
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
�& Opp
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
Operating
Service
City
Operating
Service
County
Year
Millage
Millage
Millage
Millage
Millage
Millage
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
2008
2.57052
0.05330
2.62382
1.04278
0.16492
1.20770
Source: King County Codes and Levies
. Special Districts include Emergency Medical Services, Port and Hospital Districts
Statistical Section, 7-14
2008 Comprehensive Annual Financial Report
7.00000
6.00000
5.00000
4.00000
3.00000
2.00000
1.00000
TABLE 8
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Page 2 of 2
Overlapping Property Tax Rates
ti ti ti ti ti � ti � ti
Year
City of Renton, Washington
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
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
2008
1.03213
1.26082
1.36572
2.62654
4.86637
7.49019
Statistical Section, 7-15
2008 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
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
FISCAL
YEAR
TOTAL TAX
COLLECTED WITHIN THE 1
ENDED
LEVY FOR
FISCAL YEAR OF THE LEVY
DECEMBER 31
FISCAL YEAR
AMOUNT % OF LEVY
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%
2008
27,188,522
26,722,301
98.3%
Sources:
'Annual Tax Receivable Summary
2007 Annual Property Tax Reports from King County
Statistical Section, 7-16
2008 Comprehensive Annual Financial Report
$30,000,000
$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
+ Collections in subsequent years
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
FISCAL
YEAR
COLLECTIONS `
ENDED
IN SUBSEQUENT
TOTAL COLLECTIONS TO DATE
DECEMBER 31
YEARS
AMOUNT
% OF LEVY
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
362,339
23,947,482
99.6%
2008
26,722,301
98.3%
City of Renton, Washington
Statistical Section, 7-17
2008 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
TABLE 10
SALES TAX COLLECTIONS BY SECTOR
LAST TEN FISCAL YEARS
Page 1 of 2
Sales Tax Collections by Sector
1999-2003
1999 2000 2001 2002 2003
City of Renton, Washington
■ Retail
■Construction
OManufacturing
OTransportation
■Wholesale
■Automotive
■Services
O Miscellaneous
Total Sales Tax 114.129.001 $15.264.188 $15.343.432 $15.050.835 $16.007.404
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
FISCAL YEAR
1999
2000
2001
2002
2003
FUNCTION
Furniture
$1,245,207
$1,564,002
$1,920,734
$1,623,906
$1,758,082
Electronics and Appliances
General Merchandise
560,413
581,268
643,592
673,164
788,699
Misc Retail Trade
586,594
713,017
704,420
681,148
763,596
Others
1,495,038
1,641,879
1,608,082
1,622,166
1,667,483
Subtotal Retail
$3.887.252
$4,500,166
$4,876,828
$4,600.384
$4,977,860
OTHER SECTORS
Construction
$1,545,886
$1,671,621
$2,060,061
$1,899,005
$2,122,560
Manufacturing
411,607
348,439
426,965
547,333
754,501
Transportation
614,603
768,421
648,177
621,314
563,863
Wholesale
1,692,718
1,643,207
1,535,709
1,451,387
1,442,263
Automotive
3,446,262
3,775,582
3,307,794
3,549,973
3,625,878
Services
2,063,272
2,128,373
1,913,630
1,835,039
1,953,254
Miscellaneous
467,401
428,379
574,268
546,400
567,225
Subtotal - Other Sectors
$10.241.749
$10,764,022
$10,466,604
$10,450,451
$11,029,544
Total Sales Tax 114.129.001 $15.264.188 $15.343.432 $15.050.835 $16.007.404
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
2008 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
2004-2008
2004 2005 2006 20071 2008
City of Renton, Washington
ORetail
■Construction
OManufacturing
OTransportation
■Wholesale
OAutomotive
•Services
OMiscellaneous
FISCAL YEAR
2004 2005 2006 2007' 2008
RETAIL TRADE SECTOR
Furniture
$2,205,114
$1,203,942
$1,276,644
$1,245,901
$1,199,045
Electronics and Appliances
1,065,416
1,130,621
1,143,188
1,137,586
General Merchandise
1,013,876
1,073,144
1,100,217
1,169,225
1,462,858
Misc Retail Trade
862,919
848,834
928,083
658,429
756,662
Others
1,651,782
2,227,721
2,464,896
1,378,094
1,574,482
Subtotal Retail
$5.733.691
$6,419,057
$6.900,461
$5,594,837
$6.130.633
OTHER SECTORS
Construction
$2,641,907
$2,495,684
$2,688,902
$3,898,202
$4,725,533
Manufacturing
556,555
569,269
797,166
983,110
1,050,789
Transportation
628,918
494,866
567,401
Wholesale
1,416,559
1,025,132
1,016,468
1,083,059
1,131,445
Automotive
3,538,502
3,946,163
4,303,221
4,176,747
3,575,928
Services
1,677,315
1,736,569
2,039,090
4,103,240
3,939,201
Miscellaneous
460,372
421,715
378,233
503,000
402,360
Subtotal - Other Sectors
$10,920,128
$10,689,398
$11,790.482
$14,747,358
$14.825,256
Total Sales Tax
$16.653.819
$17.108.455
$18.690.943
$20.342.195
$20.955.889
Statistical Section, 7-19
2008 Comprehensive Annual Financial Report City of Renton, Washington
TABLE 11
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Page 1 of 2
2008
Primary Government Debt
PWTF Loans
15%
Enterprise
Bonds
47%
GO Bonds
38%
Source: City of Renton, Finance and IS Department
'The percentage of personal Income column is based on personal income of King County. (See Table 16)
Statistical Section, 7-20
GOVERNMENTAL ACTIVITIES
BUSINESS -TYPE ACTIVITIES
GENERAL
SPECIAL
FISCAL
OBLIGATION
ASSESSMENT
ENTERPRISE
PWTF
YEAR
BONDS
BONDS
BONDS
LOANS
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
2008
41,938,000
43,310,000
8,913,739
Source: City of Renton, Finance and IS Department
'The percentage of personal Income column is based on personal income of King County. (See Table 16)
Statistical Section, 7-20
2008 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
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Years
City of Renton, Washington
Statistical Section, 7-21
BUSINESS -
TYPE
ACTIVITIES
PERCENTAGE'
TOTAL PRIMARY
OF
FISCAL
CAPITAL
GOVERNMENT
PERSONAL
DEBT PER
YEAR
LEASES
DEBT
INCOME
POPULATION
CAPITA
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
8.71%
54,900
1,256
2004
33,834
76,695,545
8.68%
55,360
1,385
2005
8,621
76,489,458
8.59%
56,840
1,346
2006
24,500
90,140,834
9.22%
58,360
1,545
2007
76,074
87,301,502
8.17%
60,290
1,448
2008
55,155
94,216,894
N/A
78,780
1,196
Statistical Section, 7-21
2008 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
1999
2000
2001
2002
2003
$ 319,387,556
$ 340,899,076
$ 379,698,131
$ 419,541,037
$ 448,787,441
24,462,390
22,248,983
27,586,389
32,258,499
28,173,327
$ 294,925,166
$ 318,650,093
$ 352,111,742
$ 387,282,538
$ 420,614,114
Source: City of Renton, Finance and IS Department
7.66% 6.53% 7.27% 7.69% 6.28%
Statistical Section, 7-22
2008 Comprehensive Annual Financial Report
TABLE 12
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Page 2 of 2
City of Renton, Washington
Statistical Section, 7-23
FISCAL YEAR
2004 2005 2006 2007
2008
Debt Limit
$ 477,947,409 $ 502,332,893 $ 550,085,741 $ 627,810,135
$
724,475,824
Total net debt applicable to limit
28,137,536 26,423,667 $ 42,515,728 42,624,636
40,667,064
Legal debt margin
$ 449,809,873 $ 475,909,226 $ 507,570,013 $ 585,185,499
$
683,808,760
Total net debt applicable to the limit
as a percentage of debt limit
5.89% 5.26% 7.73% 6.79%
5.61%
LEGAL DEBT MARGIN CALCULATION FOR FISCAL YEAR 2008
Assessed Value
$ 9,659,677,654
Add back: exempt real property
Total assessed value
$ 9,659,677,654
Debt Limit
2.5% of general purpose limit, voted and non -voted
$
241,491,941
2.5% Utility purpose limit, voted
241,491,941
2.5% Open Space, Park and Capital facilities, voted
241,491,941
Total Debt Limit
$
724,475,824
Debt applicable to limit:
General obligation bonds
$
41,938,000
Contracts Payable
-
41,938,000
Less: Amount set aside for repayment of
general obligation debt and contracts payable
(1,270,936)
Total net debt applicable to limit
40,667,064
Legal Debt Margin
$
683,808,760
Statistical Section, 7-23
2008 Comprehensive Annual Financial Report
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
City of Renton, Washington
TABLE 13
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
General Obligation Debt
�... zuu1 2002 2003 2004 2005 2006 2007 2008
Source:
Finance Department, City of Renton
King County Department of Assessments
Statistical Section, 7-24
LESS:
NET
% OF GO
GENERAL'
AMOUNTS'
GENERAL
DEBT TO
FISCAL
OBLIGATION
AVAILABLE
OBLIGATION
ASSESSED`
ASSESSED
PER
YEAR
BONDS
IN DEBT
DEBT
VALUE
VALUE
CAPITA
1999
$ 26,466,763
$ 2,345,570
$ 24,121,193
$ 4,258,500,750
0.57%
$ 507
2000
24,345,738
2,096,755
22,248,983
4,514,205,078
0.49%
445
2001
29,289,290
1,770,724
27,518,566
4,988,126,362
0.55%
538
2002
33,797,023
1,540,203
32,256,820
5,549,470,895
0.58%
599
2003
32,245,982
1,879,654
30,366,328
5,959,258,370
0.51%
553
2004
30,629,403
1,440,509
29,188,894
6,333,995,426
0.46%
527
2005
29,107,664
2,683,999
26,423,665
6,697,750,147
0.39%
465
2006
45,584,314
3,068,587
42,515,727
7,334,476,542
0.58%
729
2007
44,017,551
1,392,915
42,624,636
8,370,801,805
0.51%
707
2008
41,938,000
1,270,936
40,667,064
9,659,677,654
0.42%
516
Source:
Finance Department, City of Renton
King County Department of Assessments
Statistical Section, 7-24
2008 Comprehensive Annual Financial Report
TABLE 14
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
City of Renton Direct and Overlapping Debt
$260
$240
$220
$200
$180
w
c $160
c
c $140
N
c $120
i $100
$80
$60
$40
$20
$0
GOVERNMENTAL UNIT
City of Renton Direct Debt
City of Renton Overlapping Debt
King County
Port of Seattle
Renton School District #403
Issaquah School District #411
Kent School District #415
Fire District 10-1
Fire District 40-1
King County Library
City of Renton Overlapping Debt
Total Direct and Overlapping Debt
Sources:
1 King County Department of Executive Services
2 King County Department of Assessments
ESTIMATED
DEBT
OUTSTANDING APPLICABLE
$ 41,938,000 100%
1,048,574,000
3.42%
378,065,000
3.42%
219,706,516
68.29%
312,553,997
2.13%
251,179, 043
0.7089%
0
0.6355%
9,381,826
39.6918%
66,359,355
1.50%
City of Renton, Washington
ESTIMATED
SHARE OF
OVERLAPPING
DEBT
$ 41,938,000
35,861,231
12,929,823
150,037,580
6,657,400
1,780,608
3,723,816
995,390
$ 211,985,848
$ 253,923,848
Statistical Section, 7-25
2008 Comprehensive Annual Financial Report
4.00
3.50
3.00
O
2.50
2.00
O
O 1.00
0.50
0.00
TABLE 15
PLEDGED -REVENUE COVERAGE
LAST TEN FISCAL YEARS
WATER/SEWER & GOLF COURSE REVENUE BONDS
3.61
3.49
2.93 1
2.16
1.98
�v 2.30 2.40
3.07
2.90 2.86
1.28
I - WATT.EWER
}I GOLF COURSE
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
YEARS
City ofRenton, Washington
3.01
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 and IS Department
Statistical Section, 7-26
EXPENSES
NET REVENUE
FISCAL
(a)
W/O
AVAILABLE FOR
DEBT SERVICE
(b)
YEAR
REVENUE
DEPRECIATION
DEBT SERVICE
PRINCIPAL
INTEREST
COVERAGE
WATER AND SEWER REVENUE BONDS:
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
2008
32,887,264
22,020,637
10,866,627
1,810,000
1,803,687
3.01
GOLF COURSE REVENUE BONDS
(c):
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
2008
2,333,952
1,770,682
563,270
295,000
142,820
1.29
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 and IS Department
Statistical Section, 7-26
2008 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
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
City of Renton, Washington
UN -
SCHOOL
PER CAPITA
ENROLLMENT e
RATE
CITY OF
PERSONAL
PERSONAL
KING COUNTY
POPULATION a
INCOME u
INCOME'
FISCAL
KING
MEDIAN
YEAR
COUNTY RENTON
KING COUNTY
KING COUNTY
AGE
1999
$ 1,712,122 $ 47,620 $
72,997,198,000
$ 42,218
35.50
2000
1,737,046 50,052
77,271,598,000
44,424
35.70
2001
1,758,312 51,140
76,883,017,000
43,764
35.92
2002
1,774,312 53,840
77,940,608,000
44,217
36.13
2003
1,779,300 54,900
79,199,166,000
44,800
36.38
2004
1,788,300 55,360
88,407,884,000
49,670
36.60
2005
1,808,300 56,840
89,032,307,000
49,488
36.83
2006
1,835,300 58,360
97,750,314,000
53,488
36.93
2007
1,861,300 60,290
106,805,239,000
57,710
36.97
2008
1,884,200 78,780
N/A
N/A
37.00
Sources:
a
Washington State Office of Financial
Management
b
U.S. Bureau of Economic Analysis
U.S. Bureau of Economic Analysis
Washington State Office of Financial
Management
e
Renton Public Schools
r
Washington State Employment Security Department
City of Renton, Washington
12,557 3.8%
12,527 4.1%
12,556 5.1%
12,892 6.1%
13,046 6.2%
13,062 5.2%
13,192 4.7%
13,397 4.2%
13,570 3.7%
13,836 4.2%
Statistical Section, 7-27
UN -
SCHOOL
EMPLOYMENT
ENROLLMENT e
RATE
CITY OF
RENTON
KING COUNTY
12,557 3.8%
12,527 4.1%
12,556 5.1%
12,892 6.1%
13,046 6.2%
13,062 5.2%
13,192 4.7%
13,397 4.2%
13,570 3.7%
13,836 4.2%
Statistical Section, 7-27
2008 Comprehensive Annual Financial Report
EMPLOYER
Boeing Company
Renton School District
Federal Aviation Administration
Valley Medical Center
Paccarinc
King County
City of Renton
Providence Health and Services
ER Solutions Inc
Wizards of the Coast
Multiple Zones International
K & L Distributors
Wal Mart Stores Inc
TABLE 17
PRINCIPAL EMPLOYERS
2008
EMPLOYEES'
RANK
% OF TOTAL
CITY
EMPLOYMENT
12,829
1
28.80%
1,426
2
3.20%
1,400
3
3.14%
1,331
4
2.99%
1,202
5
2.70%
886
6
1.99%
760
7
1.71%
734
8
1.65%
531
9
1.19%
472
10
1.06%
21,571
Source: 'Business license records and individual queries
Source : City of Renton, Finance and IS Department
City of Renton, Washington
1999
48.42% 26,038 57.33%
Statistical Section, 7-28
% OF TOTAL
CITY
EMPLOYEES
RANK
EMPLOYMENT
19,193
1
42.26%
720
5
1.59%
1,127
4
2.48%
1,408
3
3.10%
1,459
2
3.21%
655
6
1.44%
390
8
0.86%
557
7
1.23%
273
9
0.60%
256
10
0.56%
48.42% 26,038 57.33%
Statistical Section, 7-28
2008 Comprehensive Annual Financial Report
This page intentionally left blank.
City of Renton, Washington
Statistical Section, 7-29
2008 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
FUNCTION
General Government
Public Safety
Police
Commissioned Officers
Non -Commissioned Officers
Fire
Commissioned Officers
Non -Commissioned Officers
Planning/Building/Public Works
Administration/Development Services
Transportation Systems
Utility Systems
Maintenance Services
Culture and Recreation
Parks and Recreation
Library
Golf Course
Total
FISCAL YEAR
1999 2000 2001 2002 2003
85.1
90.1
93.5
97.5
96.5
85.0
85.0
86.0
88.0
88.0
34.2
34.2
36.2
40.2
40.2
103.0
105.0
105.0
105.0
105.0
10.0
11.0
11.0
12.0
12.0
43.2
42.7
42.7
42.7
42.7
32.0
33.0
33.0
34.0
33.0
20.2
20.7
20.8
20.8
20.8
59.5
59.5
61.0
61.0
62.0
77.5
78.5
80.5
77.5
77.5
15.0
15.0
15.0
15.0
15.0
9.0
9.0
10.0
10.0
10.0
573.7
583.7
594.7
603.7
602.7
Source: City of Renton, Finance and IS Department
Note: ' In 2008, Development Services moved from Public Works to Community and Economic Development which is
listed under General Government.
Statistical Section, 7-30
2008 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
FUNCTION
General Government
Public Safety
Police
Commissioned Officers
Non -Commissioned Officers
Fire
Commissioned Officers
Non -Commissioned Officers
Planning/Building/Public Works
Administration/Development Services
Transportation Systems
Utility Systems
Maintenance Services
Culture and Recreation
Parks and Recreation
Library
Golf Course
Total
FISCAL YEAR
2004 2005 2006 2007 2008
97.5
94.5
89.5
95.0
155.6
89.0
91.0
97.0
122.0
124.0
41.2
43.2
42.2
49.2
51.2
106.0
106.0
106.0
109.0
118.0
13.0
13.0
14.0
16.0
17.0
42.7
42.5
46.5
49.0
4.0
34.5
34.5
35.5
40.5
41.0
20.8
20.8
24.8
29.3
36.7
62.0
62.0
64.1
71.0
88.0
77.5
76.5
76.5
81.0
89.5
15.0
14.0
14.0
15.0
15.0
10.0
10.0
10.0
10.0
10.0
609.2
608.0
620.0
687.0
750.0
Statistical Section, 7-31
2008 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
1999
2000
2001
2002
2003
FUNCTION
Police
Physical arrests
2,287
2,463
3,411
3,813
3,735
Parking violations
3,379
5,955
6,325
4,776
2,742
Traffic violations
11,832
12,188
10,936
11,448
11,651
Fire
Number of calls answered
7,698
7,895
8,273
8,233
8,582
Inspections
2,021
2,265
2,269
2,261
2,681
Highways and Streets
Street resurfacing (miles)
4.65
1.76
6.54
6.13
4.85
Recyclables collected (tons/yr)
5,045.7
5,493.8
5,793.6
5,119.8
4,389.0
Culture and Recreation
Athletic field attendence
86,527
87,000
119,422
126,534
137,811
Community Center admissions
148,041
156,500
174,500
162,970
172,911
Library
Volume in collections
153,935
147,818
148,758
155,463
158,676
Total volumes borrowed
334,619
352,334
382,443
456,982
499,792
Water
Metered connection
14,279
14,224
13,969
14,583
15,181
Average daily consumption
7,426.5
7,457
7,097
7,232
7,581
(thousands of gallons)
So Peak daily consumption
11,472
13,590
11,960
12,477
14,080
(thousands of gallons)
Source: City of Renton Departments
Statistical Section, 7-32
2008 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
2004
2005
2006
2007
2008
FUNCTION
Police
Physical arrests
4,280
4,590
2,489
2,925
3,580
Parking violations
3,733
3,575
3,520
5,995
5,117
Traffic violations
10,963
12,866
10,172
9,148
10,705
Fire
Number of calls answered
8,984
9,202
10,096
10,159
12,402
Inspections
2,539
3,438
3,505
3,197
2,772
Highways and Streets
Street resurfacing (miles)
3.67
3.69
3.86
1.59
2.59
Recyclables collected (tons/yr)
4,920.3
4,934.2
4,843
5,004
5,395
Culture and Recreation
Athletic field participants
156,707
155,000
155,000
91,053
93,000
Community Center participants
172,537
177,761
177,761
162,476
155,000
Library
Volume in collections
165,406
190,011
193,965
188,359
194,497
Total volumes borrowed
512,059
491,470
464,333
491,397
554,223
Water
Metered connection
15,379
16,585
16,668
16,958
17,172
Average daily consumption
7,635
7,306
7,999
8,008
7,388
(thousands of gallons)
Peak daily consumption
14,248
13,025
15,271
14,750
12,739
(thousands of gallons)
Statistical Section, 7-33
2008 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
1999
2000
2001
2002
2003
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)
180.6
195.4
195.6
213.2
213.7
Streetlights (added)
46.0
69.0
75.0
53.0
120.0
Culture and recreation
Parks acreage
1,158.0
1,158.0
1,158.0
1,158.0
1,158.0
Parks
28.0
28.0
26.0
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)
252.2
278.0
283
289.0
291.0
Fire hydrants
2,893
2,993
3,102
3,193
3,240
Sewer
Sanitary sewers (miles)
170.9
162.6
168.1
176.7
183.5
Storm sewers (miles)
180.9
183.8
189.7
199.4
204.0
Source: City of Renton Departments
Statistical Section, 7-34
2008 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
2004
2005
2006
2007
2008
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
10.0
Fire stations
5.0
5.0
5.0
5.0
6.0
Highways and streets
Street (miles)
213.7
218.0
224.6
233.7
263.8
Streetlights
92.0
86.0
134.0
213.0
230.0
Culture and recreation
Parks acreage
1,158.0
1,158.0
1,160.0
1,160.0
1,181.0
Parks
26.0
26.0
26.0
28.0
29.0
Swimming pools
1.0
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)
291.1
293.0
295.0
300.0
304.0
Fire hydrants
3,274
3,374
3,440
3,544
3,602
Sewer
Sanitary sewers (miles)
189.6
193.3
204.9
206.3
215.7
Storm sewers (miles)
209.7
214.8
219.7
222.3
267.5
Statistical Section, 7-35
2008 Comprehensive Annual Financial Report
This page intentionally left blank.
City of Renton, Washington
Statistical Section, 7-36