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1997 CAFR
5k 1997 f L, ----------- CITY OF RENTON Comprehensive Annual Financial Report (For the year ended December 31, 1997) 200 Mill Avenue South - Renton Washington 98055 (425)235-2558 M r The City of Renton, Washington Comprehensive Annual Financial Report For Year Ended December 31, 1997 INTRODUCTORY SECTION r Victoria A. Runkle Finance & Information Services Administrator COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31,1997 ' TABLE OF CONTENTS ITEM PAGE ' INTRODUCTORY SECTION City Organization Structure&Reporting Relations.................................................................................................................................iii ' Letterof Transmittal................................................................................................................................................................................iv FINANCIAL SECTION ' IndependentAuditor's Report.............................................................................................................................................................2 Combined Financial Statements-Overview(General Purpose Financial Statements) Combined Balance Sheet-All Fund Types and Account Groups......................................................................................................4 Combined Statement of Revenues, Expenditures and Changes in Fund Balances for All Governmental Fund Types.....................6 Combined Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual.............................................7 Combined Statement of Revenues, Expenses and Changes in Fund Equity Proprietary and Similar Trust Funds.........................11 Combined Statement of Cash Flows Proprietary and Similar Trust Funds.......................................................................................12 ' Notes to Financial Statements Note 1: Significant Accounting Policies..................................................................................................................................17 ReportingEntity.................................................................................................................................................17 Basis of Presentation-Fund Accounting..........................................................................................................17 ' Basisof Accounting...........................................................................................................................................18 Budgets and Budgetary Accounting..................................................................................................................19 Assets,Liabilities and Fund Equity....................................................................................................................19 ' Cashand Cash Equivalents......................................................................................................................19 Investments...............................................................................................................................................19 Inventories.................................................................................................................................................19 PropertyTaxes Receivable.......................................................................................................................20 AssessmentsReceivable...........................................................................................................................20 .. Fixed Assets and Depreciation..................................................................................................................20 Accumulated Unpaid Vacation and Sick Pay.............................................................................................21 Fund Equity-Reserves&Designations....................................................................................................21 Direct Charges/Credits to Enterprise Funds Retained Earnings...............................................................21 Risk Management and Risk Retention......................................................................................................21 Note 2: Stewardship,Compliance and Accountability............................................................................................................21 Note3: Cash&Investments..................................................................................................................................................22 .. Note4: Deferred Compensation............................................................................................................................................22 Note5: Receivables and Payables........................................................................................................................................23 Note 6: Operating and Residual Equity Transfers.................................................................................................................24 Note7: Fixed Assets..............................................................................................................................................................25 Note8: Prepaid Items............................................................................................................................................................26 Note9: Joint Ventures...........................................................................................................................................................26 Note 10: Pension Plan&Other Postemployment Benefits......................................................................................................28 PERSand LEOFF.............................................................................................................................................29 Firemen's Pension.............................................................................................................................................29 Note11: Construction Commitments.......................................................................................................................................31 Note12: Long-Term Debt........................................................................................................................................................32 Note 13: Deferred Charges in Proprietary Funds....................................................................................................................36 Note 14: Reservations and Designations of Fund Equity.........................................................................................................36 Note 15: Segment Information for Enterprise Funds...............................................................................................................36 Note16: Litigation ...................................................................................................................................................................37 Note17: Risk Management.....................................................................................................................................................37 Note18: Subsequent Events...................................................................................................................................................38 ., COMBINING FINANCIAL STATEMENTS AND SCHEDULES OF INDIVIDUAL FUNDS AND ACCOUNT GROUPS: General Fund: ComparativeBalance Sheet.......................................................................................................................................................41 Statement of Revenues, Expenditures and Changes in Fund Balance......................................................................................42 Statement of Revenues,Expenditures and Changes in Fund Balance Budget and Actual........................................................43 i COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31,1997 TABLE OF CONTENTS ITEM PAGE COMBINING FINANCIAL STATEMENTS AND SCHEDULES OF INDIVIDUAL FUNDS AND ACCOUNT GROUPS(continued): Special Revenue Funds: CombiningBalance Sheet...........................................................................................................................................................45 Combining Statement of Revenues, Expenditures and Changes in Fund Balances..................................................................47 Combining Statement of Revenues, Expenditures,and Changes in Fund Balances Budget and Actual...................................49 Debt Service Funds: CombiningBalance Sheet...........................................................................................................................................................57 Combining Statement of Revenues, Expenditures and Changes in Fund Balance....................................................................59 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual....................................61 Capital Project Funds: CombiningBalance Sheet...........................................................................................................................................................69 Combining Statement of Revenues, Expenditures and Changes in Fund Balance....................................................................71 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual....................................73 Enterprise Funds: CombiningBalance Sheet...........................................................................................................................................................79 Combining Statement of Revenues, Expenses and Changes in Fund Equity............................................................................81 CombiningStatement of Cash Flows..........................................................................................................................................83 Internal Service Funds: CombiningBalance Sheet...........................................................................................................................................................89 Combining Statement of Revenues, Expenses and Changes in Fund Equity............................................................................90 CombiningStatement of Cash Flows..........................................................................................................................................91 Fiduciary Funds. CombiningBalance Sheet...........................................................................................................................................................93 Firemen's Pension Trust Fund Comparative Statement of Revenues, Expenses and Changes in Fund Equity........................95 Combining Statement of Changes in Assets and Liabilities All Agency Funds...........................................................................96 General Fixed Asset Account Group: ' Comparative Balance Sheet.......................................................................................................................................................99 Schedule of General Fixed Assets by Source...........................................................................................................................100 Schedule of General Fixed Assets by Function and Activity.....................................................................................................101 Schedule of Changes in General Fixed Assets by Function and Activity..................................................................................101 General Long-Term Debt Account Group: ComparativeBalance Sheet.....................................................................................................................................................103 STATISTICAL SECTION Table 1: General Government Revenues&Expenditures—Last Ten Fiscal Years...................................................................105 ' Table 2: Assessed Value, Property Tax Rates, Levies and Collections—Last Ten Fiscal Years...............................................107 Table 3: Ratio of Net General Obligation Debt to Assessed Value&Net Bonded Debt per Capita—Last Ten Fiscal Years.....109 Table 4: Special Assessment Billings and Collections—Last Ten Fiscal Years.........................................................................110 Table 5: Computation of Legal Debt Margin—December 31, 1997............................................................................................111 Table 6: Computation of Direct and Overlapping Debt—December 31,1997.............................................................................112 Table 7: General Obligation Bonds/Expenditure Ratio—Last Ten Fiscal Years.........................................................................113 Table 8: Revenue Bond Coverage—Last Ten Fiscal Years.......................................................................................................114 Table9: Retail Sales by Source..................................................................................................................................................115 Table 10: Largest Taxpayers and Principal Employers.................................................................................................................116 Table 11: Construction and Bank Deposits—Last Ten Fiscal Years............................................................................................117 Table 12: Demographic Statistics—Last Ten Fiscal Years...........................................................................................................119 Table13: Miscellaneous Statistics................................................................................................................................................120 ii City of Renton—1997 CAFR ' CORPORATE ORGANIZATIONAL STRUCTURE ' Renton's Mission Statement The City of Renton,in partnership with residents,business and government,is dedicated to: ' Providing a healthy atmosphere in which to live and raise families; Encourage responsible growth and economic vitality; Create a positive work environment; Resulting in quality community where people choose to live,work and play. ' RENTON ' CITIZENS Councilmembers Jesse Tanner ' Bob Edwards,President Mayor Dan Clawson Randy Corman eolker-Wheeler Chief Administrative to Officer Kathyy Jay Covington ' Toni Nelson King Parker,Pres Pro Tem Timothy J.Schlitzer HUMAN RESOURCES PLANNING/BLDG/ EXECUTIVE FINANCE&INFORMATION &RISK MANAGEMENT PUBLIC WORKS DEPARTMENT SERVICES Human Resources& Administrator City Attorney Administrator Risk Mngt Administrator Gregg Zimmerman Larry Warren Victoria Runkle Vacant Development Srvs Hearing Examiner Finantt Risk Director Fred Kaufman Asst Finance Director Management Jan Hanson Paul Kusakabe Municipal Court Judge Human Transportation Systems Corinna Ham Budgeting Resources Director Sandra Meyer City Clerk Information Civil Service Marilyn Petersen Services Commission Utilities&Tech Services Systems Director Printing Se Ron Olsenrvices Maintenance Services Director Jack Crumley FIRE POLICE COMMUNITY ECON DEV,NEIGHBORHDS DEPARTMENT DEPARTMENT SERVICES &STRATEGIC PLNG Chief Chief Administrator Administrator Lee Wheeler Gary Anderson Vacant Sue Carlson Deputy Chief/Fire Marshall Deputy Chief Facilities Director Neighborhds&Strategic Ping Art Larson Joe Peach Jim Shepherd Planning Director Mike Katterman Fire Prevention Operations Recreation Director Bureau Vacant Economic Development Econ Devel Director Deputy Chief Parks Director Betty Nokes ' Vacant Deputy Chief Leslie Betlach Don Persson Training/Support Library Director Services Support Srvs Clark Petersen ' Bureau Suppression Human Services Mngr Karen Marshall Emergency Mngt/ Safety III CITY OF RENTON ;7R Finance & Information Services J e Tanner,Mayor Victoria A. Runkle, Administrator Honorable Jesse Tanner, Mayor June 30, 1998 Members of the Renton City Council City of Renton 200 Mill Avenue South Renton,WA 98055 TRANSMITTAL OF 1997 COMPREHENSIVE ANNUAL FINANCIAL REPORT Dear Mayor and Council Members: W With this letter the Finance Department transmits a copy of our City's Comprehensive Annual Financial Report for the year ending December 31, 1997. As you would expect, our financial records continue to receive an unqualified audit report. Further, the records indicate our region continues to enjoy economic growth. These two facts help the Mayor and Council continue development and adherence to prudent fiscal management of the City resources. They also demonstrate that the City is most concerned about the integrity of our financial records. This concern transcends the Finance Department employees to include all staff of our City. The Comprehensive Annual Financial Report(CAFR)has three significant uses. First, it provides taxpayers and citizens a broad overview of the City's finances. Second, rating agencies and interested bond buyers use this report to evaluate our City's fiscal health and creditworthiness. Third,the CAFR is a series of the audited financial statements. These statements have all been reviewed in depth by the State Auditor's Office to ensure the City's funds are safeguarded and the City is expending them as they were legally appropriated. This report must be and is prepared in accordance with the requirements of Washington State Law 43.09.230 and in conformance with Generally Accepted Accounting Principles. The latter requirement also ensures our fiscal health and spending patterns can be compared to other cities that produce a CAFR. This letter has five sections. It provides an introduction; reviews the economic condition and outlook of our region; outlines 1997 initiatives, challenges and accomplishments and provides some general information. INTRODUCTION The City of Renton Finance and Information Services Department is responsible for the Management Representation of the contents of this report. Our department is charged with the responsibility for the accuracy, completeness and faimess of presentation of information contained in this report. The department warrants that, to the best of our knowledge and ability, the data and disclosures reported are both accurate in all material aspects and they fairly represent Renton's financial position and results of operations of its various funds and account groups. The City of Renton develops its CAFR according to rules and regulations established by the national Government Accounting Standards Board (GASB). By following these guidelines, we ensure the report contains the CAFR Contents that are clearly understood by users of detailed financial information. The GASB has defined the organization and contents of a CAFR;therefore,the CAFR is organized in three sections: 1) The Introductory Section, which includes the Table of Contents, the City's Organizational Chart and principal officers and the Letter of Transmittal. 2) The Financial Section, which includes an independent auditor's report and the Combined Financial Statements and accompanying note .. disclosures,followed by the Combining Financial Statements by fund type and account group. The Combined Financiat Statements,together with the Notes to the Financial Statements, comprise the General Purpose Financial Statements, which provide an overview of the financial position and results of operations for the City. 3) The Statistical Section, which presents financial, economic, social and demographic data about the City. The Statistical Section is useful in revealing trends that have and may continue to affect the City of Renton. ' The GASB also requires the reporting organization to define the Reporting Entity. This report includes all City funds, account groups, agencies, boards and commissions that are controlled by,or dependent on,the City. Control by or dependence upon the City was determined on the basis of authority to appoint or remove the majority of board members; financial support including debt secured by revenues or general obligations of the City;obligation of the City to finance any deficits that may occur;or receipt of significant subsidies from the City. This report does not include the financial position or results of operations for the Renton Housing Authority. The Housing Authority has been excluded because the City neither reviews their budget, nor is obligated to fund any of their deficits. iv ' 200 Mill Avenue South - Renton, Washington 98055 - (425)235-2607 City of Renton-1997 CAFR ' Renton is a participant in the Valley Communications Center, which provides consolidated emergency dispatch services for the cities of Auburn, ' Kent,Renton and Tukwila. Each city shares a portion of support to the center, based on dispatchable call services provided to each entity. The Valley Communications Center is reported in the City's financial statements as a joint venture. ECONOMIC CONDITION AND OUTLOOK ' Our local economy continues to reflect the economic growth of the national fiscal health. In 1997,we issued over 350 building permits for a total assessed valuation of $243 million. We gained major retailers, including a national computer sales retailer (Multiple Zones), beverage ' distributors,entertainment centers and continued expansion of our automall. In 1997, we issued permits for three new extended stay hotels. We also saw the beginning construction of Boeing's new Boeing 737 Headquarters. This new facility has an estimated assessed value of$20 million;and will include completion of a major new arterial. The Boeing ' Company also constructed a new daycare facility for 80 children. By the end of 1997, Boeing was completing over 25 planes per month at the Renton facility. Employment within the City of Renton is tracked through the Business License program. Each business providing any kind of service within t Renton must have a business license. The license fee is based on hours worked by employees. Over 85%of the revenue earned from licenses is dedicated to transportation capital needs. The graph indicates that while there are fewer licenses issued at the end of 1997,we actually have higher employment. ' We do track employment by business. Employment is certainly higher at Boeing and PACCAR at the end of 1997. More importantly, all sectors of the economy demonstrate a higher level of employment. Over the past three years, employment in all other sectors of the economy has grown by over 26%. Sales tax revenue is an indicator of both our economy and that of King County. Renton has the ability to draw revenue from the Taal ArrLd Sales Tax surrounding area. In 1997 we earned $12,512,676 from sales •� taxes. This was 8.8% above 1996. The corresponding graph 14,000,000 depicts annual collections over the past six years. 12000000 1Q000,000 --- We have seen some remarkable increases in the type of i businesses that provide our sales tax base. In 1996, over $1.4 8'000'OOD million of our sales tax revenue was generated by manufacturing. 6,000,00D °— - In 1997, that amount decreased by 38% to a total of$1,043,283. 4,000,00D At the same time, car sales increased by 33.6%, from$2.0 million Z000,000 -- - to$2.7 million in annual revenue. Even more remarkable was the - increase in durable, nondurable and restaurant sales tax receipts. 92 93 94 95 96 97 The City received over $851,000 in new revenue in this category for a total 1997 receipts of $3,144,905-translating into a 37% increase. Property tax revenue is beginning to follow the general growth that -------- - -- sales taxes and business licenses have. In 1997, the value of new Annual New Construction construction as defined by the King County assessor was Assessed Valuation $83,200,000.This valuation was based upon construction progress as of January through June 1996. $160,000,000 j $120,000,000 -In 1997, Renton issued 350 permits for commercial, multi and Q $80,000,000 — single family buildings. The combined value of these buildings will (a add over$134 million to the city's assessment rolls over the next0'�'� Z three years. The total valuation for new permits was 78% above 1996. Z� � CP Ch O'1 1 v , City of Renton-1997 CAFR This graph depicts our overall assessed valuation. With the new construction numbers,our valuation has started to increase. We expect this to continue to increase in 1998 due to continued growth and higher values. One criteria for assessment of commercial space is the vacancy rate. In 1994, Renton was experiencing a vacancy rate of over 30%. By April 1998, the vacancy rate was 7.4%. It takes more than a year to recapture these values. Nonetheless,the assessed value should continue in a positive direction. Total Assessed Value $4,000,000,000 $3,500,000,000 $3,000,000,000 $2,500,000,000 $2,000,000,000 J $1,500,000,000 ' _ $1,000,000,000 $500,000,000 85 86 87 88 89 90 91 92 93 94 95 96 97 We are most excited about the economic future of Renton. While Boeing and PACCAR continue to be dominant forces in our area, their influence is now balanced with other large businesses. Renton is now the home of national firms such as Wizards of the Coast, Multiple Zones and Home Base. We have a broad retail base with increasing sales of both new and used cars, expanding furniture sales and growing sales in general retail. In addition to Boeing's plan to produce forty-eight 737s per month, the company is also completing its new 737/757 headquarters on their 500 acre site. In 1997 the City and Boeing entered into a partnership to complete the north/south arterial, Oakesdale Avenue. Boeing provided over $800,000 in cash. The City also developed a plan for right-of-way ownership that will expand the road from two to four lanes. In 1997 the City continued study and negotiations for the area known as Port Quendall. At the end of 1997 the City was still evaluating with the owners of the property and the Paul Allen Group over the details of cleanup requirements and costs. With the creation of the automall in 1996, we were able to relocate two of our auto dealerships from the downtown core to an area of high visibility. The City took ownership of the downtown property and began plans for a major downtown park. Negotiations to sell portions of the �. property for high-end multi-family housing began. Across from the park a new restaurant,banking and service companies opened for business. 11 As we ended 1997, we saw the outcomes of significant years of difficult work. New housing was being built throughout the City. Our commercial vacancy rate was below 10%. The housing and commercial changes will provide long term stability to our assessed valuation. With this growth came an increase in services. Coffee shops alone provided over $13,000 in sales tax revenues for a 2% increase over 1996. Restaurants generated a total of$56,000 in sales tax in 1997,reflecting a 29%increase over 1996. Further, we meet 1998 with significant long-term plans in their implementation stage. The downtown park started to take form in late 1997. Boeing's major development will add significant presence to our City. We continue an aggressive transportation plan in order to maintain growth. We believe these efforts will translate, as they have, into increasing our economic base in all areas: sales tax, property tax, small business growth and employment opportunities to meet the challenges of the next century. INITIATIVES,CHALLENGES AND ACCOMPLISHMENTS The Comprehensive Annual Financial Report has many purposes. it represents clearly the financial health of our City. As it is audited by an independent reviewer,it also speaks to the City's financial management. As stated,the CAFR should also illustrate where the expenditures were made and how they accomplished the significant priorities as established annually by the City Council. During the development of the 1997 budget,the Council identified five major areas of focus. The Council's stated 1997 goals were: ' • Acquire Space to Meet Public Safety and Administrative Office Needs. • Improve Renton's Image. • Promote Economic Development. • Increase Service Productivity and Innovation. ' • Acquire Space to Meet Public Safety and Administrative Office Needs. • Develop an Annexation Strategy. ' vi City of Renton-1997 CAFR , We believe our intense focus on the top five priorities translated into significant success. The following highlights a very limited number of our , accomplishments. New facilities for public safety and administrative functions were the number one priority for 1997. In late 1996 we began negotiation to ' purchase an 112,000 square foot building to use as the new City Hall. In May 1997 the City purchased the building for$9 million. The City refunded debt in order to maintain an annual$2 million of debt service. The total issue was for$17.3. The Limited Tax General Obligation debt ' will be retired in 2017. The new building needs renovation as well as improved public access. The improved public access will be accommodated with the construction of a ramp. The goal of beginning to move City staff into the building in June 1998 has been attained. We expect the full construction of the facility to be complete in early 1999,with the jail being the last element to complete. The new City Hall will have over 1.5 floors — or 25,000 square feet of unused space for several years. This building was purchased to , accommodate the City's space needs for the next 20 years. The work in 1997 on image development included development of the downtown park; continued work on the development of the Paul Allen , project and the initial creation of neighborhood planning efforts. These goals are very exciting. The one area not discussed earlier is our 1997 efforts in neighborhood planning efforts. In 1997 City employees,as volunteers, began work with ' four different Renton neighborhood groups to identify ways the citizens and City could work together to improve services in the neighborhoods. The outcome of this initial process included: developing a sense of neighborhood through picnics and ongoing meetings and increasing City effort in"cleanup"code enforcement in all areas of the City. We will continue this process through 1998 to help develop a sense of community throughout the City. Economic development continues to be a major force in our City. In order to withstand economic downturns, Renton looks different in 1997. While Boeing continues to be a major player, we have other companies that mirror a different tax base. Multiple Zones, Wizards of the Coast and the expanding IKEA retail store all have customers outside Renton's geographic area. This year represents the second year of implementing of the service productivity and innovation goal. During 1997 one staff group developed a citywide training program for all new employees to be implemented in 1997. This program will outline the values and goals of our City for new employees. It will also establish time for employees to meet various staff throughout the City and visit all divisions of the City. The neighborhood planning initiative was so successful that parts of the City government were reorganized in late 1997 to meet these important needs of our City. The new Economic Development Neighborhoods and Strategic Planning Department will guide this effort. The performance measures group ended the year by placing a section in the 1998 budget dedicated to establishing benchmarks. This group will continue its work and 1998 will be the group's most significant year. Annexation was an ongoing program. In 1997 the policymakers decided that only areas where it made economic sense would be considered for annexation. The areas where the infrastructure costs are higher than the revenue potential will no longer be considered as annexation areas. Further,as cities and King County continue to work through issues of regional government and financing, the true costs of providing services to unincorporated areas will be better defined. Defining these costs will result in a more coherent regional policy. Until that time the City of Renton will dedicate their resources to the citizens of Renton. In summary,the City(as an organization)has focused on accomplishing base services and accomplishing five major initiatives in 1997. This led to measurable successes in the areas of meeting facility needs;developing programs to enhance the image of the City;clarifying our role in the region on annexation issues; maintaining a focus on economic development(which translated into measurable tax receipts); and instituting an employee culture on how to provide services at the lowest cost. We began a five-year business plan in 1996. In the second year of the plan, 1997, our goal was to establish the objectives of implementation. The next year, 1998, was considered the first year of implementation. Nonetheless, 1997 ended with a great deal of implementation. Buildings were purchased, development of parks began and a great deal of discussion began with Renton's neighborhoods. We expect 1998 to be a continuation of the programs set forth in the original business plan. GENERAL INFORMATION ' This section of the transmittal letter will discuss accounting/budgetary controls for Renton's major fund groups. Accounting and Administrative Controls: The City utilizes various accounting and administrative controls to ensure stewardship , responsibilities are fulfilled. Accounting control includes the plans, procedures and systems used to safeguard assets and the reliability of financial records. These controls provide reasonable assurance that transactions are executed in accordance with management authorization, Vii City of Renton-1997 CAFR recorded in conformity with Generally Accepted Accounting Principles and sufficient reporting and review exist to provide adequate information for comparability and analysis of data. Administrative control refers to the decision-making process utilized to establish management authorization for financial transactions and is the starting point for establishing accounting controls. Washington State cities and counties must comply with the Budgeting, Accounting and Reporting System prescribed by the Office of the State Auditor. State laws also provide for annual independent audits by the Office of the State Auditor. Audits routinely include a thorough review of all administrative and accounting policies and procedures. Budgetary control is integrated with the accounting system. Budgeting is carried out in accordance with State RCW 35A.33. Annual appropriated budgets are adopted for the General, Special Revenue, Debt Service and Capital Projects Funds, with appropriations lapsing at year-end. Enterprise and Internal Service Fund budgets are for management control only and are, therefore, not reported. A budget increase or decrease to a fund must be authorized by the City Council, while the Mayor may authorize transfers within a fund. All budgets are controlled at the fund level. An encumbrance system is maintained to account for all commitments resulting from approved purchase orders and contracts and serves as an additional measure of budgetary control, Open encumbrances lapse at year-end and are reappropriated or absorbed in the next year's operating budget. The final section of the letter of transmittal will provide information regarding the City's annual audit, awards and acknowledgments. Independent Audit: Washington State Law requires an annual audit of the City's financial statements by the independently elected State Auditor. The State Auditor conducts the audit in accordance with generally accepted auditing standards, as promulgated by the American Institute of Certified Public Accountants(AICPA) and provides an independent opinion on the City's financial position and results of operations and the cash flows of its proprietary fund types. In addition to the opinion on the City's financial statements included in this report, the State Auditor also issues separate reports on internal control and compliance with laws and regulations that meet the requirements of the Single Audit Act of 1984 and related OMB Circular A-128. The audit of 1996 has been completed and the City has been issued an unqualified opinion. The "Independent Auditor's Report"is included in the"Financial Section"of this document. Certificate of Achievement The Government Finance Officers' Association of the United States and Canada Certificate of (GFOA) awarded the Certificate of Achievement for Excellence in Financial Achievement Reporting to the City of Renton for its Comprehensive Annual Financial Report for for Excellence the year ended December 31, 1996. The Certificate of Achievement is a prestigious in Financial national award recognizing conformance with the highest standards for preparation Reportingof state and local government financial reports. Presented to In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual City Renton, Financial Report, whose contents conform to program standards. Such Washington Comprehensive Annual Financial Reports must satisfy both Generally Accepted For its Comprehensive Annual Accounting Principles and applicable legal requirements. Financial Report for the Fiscal Year Ended December 31, 1996 Acknowledgments: Preparation of this report could not have been accomplished A Certificate of Achil for Excellence in Rrtandal Reporting is prese>ked by the Government Fane officem without the professional, efficient and dedicated services of the entire staff of the A—talon of the UNted States and Cart Aa to government units and public employee-ti—t Finance and Information Services Department and the various department heads nstem"who-comprehensive annual fire ial repo��C t� � and employees who assisted and contributed to its preparation. Further and fir—in!mpown9. appreciation is extended to the Mayor and City Council for their encouragement, interest and support in conducting the financial operations of the City in a sound and progressive manner. The efficient assistance of examiners from the office of the > 40( President (�yJ State Auditor is also appreciated. Staff who had a direct role in preparing Renton's V A�� � 1997 Comprehensive Annual Financial Report take great pride in their work and the irrl E„ec„t„,"alta entire team who worked on this project are recognized on the last page of the report. r� viii City of Renton-1997 CAFR I will be happy to respond to any questions or comments about the information contained in this report. Again, sincere thanks for the support showed to the Finance&Information Services Department. Sincerely, CITY OF RENTON Victoria A.Runkle , Finance&Information Services Administrator cc: Washington State Auditor I ix , 1 ' 1997 Annual Financial Reort p ' Financial Statements 1 1 1 1 1 I' Legislative Building Washington State Auditor (360)902-0370 ' PO Box 40021 FAX(360)753-0646 Olympia,Washington 98504-0021 Brian Sonntag TDD Relay 1-800-833-6388 http://www.wa.gov/sao/ ' INDEPENDENT AUDITOR'S REPORT June 24, 1998 The Honorable Mayor and City Council City of Renton Renton, Washington .v We have audited the general purpose financial statements of the City of Renton, King County, Washington, as of and for the year ended December 31, 1997, as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was performed pursuant to the Revised Code of Washington 43.09.260, under which a full report on the results of this audit will be issued. This report may include findings and recommendations on compliance matters, internal control procedures, and questionable costs or contingencies that would not be material in relation to the general purpose financial statements taken as a whole. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the City of Renton, King County, Washington, at December 31, 1997, and the results of its operations and cash flows of its proprietary fund types and similar trust funds for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund, and account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis, and are not a required part of the general purpose financial statements of the City of Renton, King County, Washington. The information has been subjected to the procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The other data included in this report, designated as the statistical section in the table of contents, has not been audited by us and, accordingly, we express no opinion on such data. r Sincerely, B AN SONNTAG, CGF STATE AUDITOR 2 r r. r. r a. tr 1997 Annual Financial Report General Purpose Financial Statements 3 City of Renton-1997 CAFR , COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS: DECEMBER 31,1997 Page 1 of 2 With Comparative Totals for December 31,1996 GOVERNMENTAL FUND TYPES SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECTS ASSETS: Cash and Cash Equivalents-Note 3 $ 6,844,459 $ 4,151,923 $ 1,772,516 $ 7,384,220 Cash With Fiscal Agent 0 0 323,999 0 Deferred Compensation Plan Assets-Note 4 0 0 0 0 Investments-Note 3 0 4,713,697 900,000 5,875,579 Receivables,net of Allowance for Uncollectibles-Note 5° 3,887,321 105,306 2,701,145 100,247 Due From Other Funds-Note 5 9,134 67,901 163,650 69,069 ' Interfund Loans/Advances-Current-Note 5 0 0 0 0 Due From Other Governmental Units-Note 5 33,345 280,883 0 4,472,871 Inventory of Material and Supplies-Note 1 0 0 0 0 Prepaid Items-Note 8 8,000 0 0 0 t Investment in Joint Venture-Note 9 0 0 0 0 Restricted Assets: Deposits 132,975 0 0 0 Revenue Bond Debt Service 0 0 0 0 , Construction Account 0 0 0 0 Interfund Loans/Advances-Non-Current-Note 5 79,000 0 0 0 Note Receivable-Non-Current-Note 5 0 0 0 0 Fixed Assets(Net)-Note 1 8 7 0 0 0 0 ' Construction In Progress-Note 7 0 0 0 0 Deferred Charges and Other Assets-Note 13 0 0 0 0 Available in Debt Service 8 Capital Project Funds 0 0 0 0 Amount To Be Provided Long Term Debt Retirement 0 0 0 0 TOTAL ASSETS $ 10,994,234 $ 9,319,710 $ 5,861 310 $ 17,901 986 LIABILITIES AND FUND EQUITY: LIABILITIES: Vouchers/Contracts Payable $ 355,334 $ 131,437 $ 0 $ 36,171 Retainage Payable 0 0 0 123,486 Due To Other Funds-Note 5 353,867 9,885 0 47,498 Interfund Loans/Advances-Current-Note 5 0 0 0 0 Due To Other Governmental Units-Note 5 1,478,544 3,449 0 0 ' Payables-Note 5 309 6,006 323,999 530 Deferred Revenues 2,237,242 0 2,617.681 0 Liabilities Payable from Restricted Assets: Deposits Payable 0 0 0 0 General Obligation Bonds Payable-Current-Note 12 0 0 0 0 Installment Purchase Contracts-Current-Note 12 0 0 0 0 Revenue Bonds Payable-Current Portion-Note 12 0 0 0 0 Other Short Term Liabilities-Note 12 0 0 0 0 ' Deposits Payable 0 18,825 0 0 General Obligation Bonds Payable-Current-Note 12 0 0 0 0 General Obligation Bonds Payable-Note 12 0 0 0 0 Unamortized Discounts on G.O.Bond 0 0 0 0 Special Assessment Bonds Payable-Note 12 0 0 0 0 Revenue Bonds Payable-Note 12 0 0 0 0 Unamortized Discounts on Revenue Bond 0 0 0 0 Accrued Employee Leave Benefits-Note 1 8 12 190,825 75,973 0 0 Deferred Compensation Payable-Note 4 0 0 0 0 Interfund Loans/Advances-Non-Current-Note 5 0 75,000 0 0 Claims Incurred But Not Reported-Note 17 0 0 0 0 Capital Leases Payable-Note 12 0 0 0 0 Installment Purchase Contracts-Note 12 0 0 0 0 Public Works Trust Fund Loan Payable 0 0 0 0 TOTAL LIABILITIES $ 4,616,121 $ 320,575 $ 2,941,680 $ 207,685 FUND EQUITY AND OTHER CREDITS: Fund Balance: ' Reserved-Note 1 814 $ 87,000 $ 0 $ 2,919,630 $ 0 Unreserved-Designated 107,048 0 0 0 Unreserved-Undesignated 6,184,065 8,999,135 0 17,694,301 Contributed Capital 0 0 0 0 ' Retained Earnings: Reserved-Note 1 8 14 0 0 0 0 Unreserved 0 0 0 0 Investments in Joint Venture and General Fixed Assets 0 0 0 0 TOTAL FUND EQUITY AND OTHER CREDITS $ 6,378,113 $ 8,999,135 $ 2,919,630" $ 17,694,301 TOTAL LIABILITIES,EQUITY AND OTHER CREDITS $ 10,994,234 $ 9,319,710 $ 5,861,310 $______17,901,986 THE ACCOMPANYING NOTES ARE AN City of Renton-1997 CAFR Page 2 of 2 PROPRIETARY FUND TYPES FIDUCIARY ACCOUNT GROUPS COMPARATIVE TOTALS INTERNAL TRUST GENERAL GENERALLONG (MEMORANDUM ONLY) ENTERPRISE SERVICE AND AGENCY FIXED ASSETS TERM DEBT 1997 1996 $ 6,352,927 $ 3,396,619 $ 698,477 $ 0 $ 0 $ 30,601,141 $ 20,068,095 160,320 26,300 0 0 0 510,619 240,344 0 0 11,599,243 0 0 11,599,243 8,713,576 1,659,502 2,507,649 5,498,704 0 0 21,155,131 19,121,620 2,983,278 35,492 94,522 0 0 9,907,311 10,975,240 319,095 49,456 0 0 0 678,305 389,083 0 0 52,680 0 0 52,680 57,247 ` 364,777 0 0 0 0 5,151,876 4,997,949 479,100 52,591 0 0 0 531,691 422,824 0 10,018 0 0 0 18,018 16,641 0 0 0 1,498,995 0 1,498,995 1,241,633 21,379 0 0 0 0 154,354 20,964 5,012,567 0 0 0 0 5,012,567 7,843,495 3,593,622 0 0 0 0 3,593,622 4,788,851 ,. 0 0 0 0 0 79,000 131,680 86,199 0 0 0 0 86,199 104,677 127,574,220 2,890,796 0 80,482,862 0 210,947,878 185,993,767 7,055,235 0 0 15,296,531 0 22,351,766 12,874,044 96,000 0 0 0 0 96,000 112,000 0 0 0 0 3,790,030 3,790,030 3,767,056 0 0 0 0 28,295,110 28,295,110 15,359,839 $ 155,758 221 $ 8,968 921 $ 17,943 626 $ 97,278,388 $ 32 085140 $ 356111 536 $ 297,240,625 $ 659,737 $ 33,339 $ 0 $ 0 $ 0 $ 1,216,018 $ 1,844,041 73,985 0 0 0 0 197,471 259,375 116,093 15,300 0 0 0 542,643 389,083 52,680 0 0 0 0 52,680 57,247 401,168 0 0 0 0 1,883,161 1,622,677 618,870 33,448 0 0 0 983,162 748,887 112,134 41,185 0 0 0 5,008,242 5,287,981 96,138 0 0 0 0 96,138 70,308 383,040 0 0 0 0 383,040 422,400 41,492 0 0 0 0 41,492 0 1,920,000 0 0 0 0 1,920,000 1,810,000 0 0 0 0 0 0 28,674 0 0 104,829 0 0 123,654 227,866 0 30,960 0 0 0 30,960 215,870 1,876,825 1,270,978 0 0 26,546,105 29,693,908 16,655,067 (30,761) (48,659) 0 0 0 (79,420) (55,090) 0 0 0 0 1,835,000 1,835,000 2,456,000 28,020,000 0 0 0 0 28,020,000 29,940,000 (511,307) 0 0 0 0 (511,307) (573,551) 381,492 33,089 0 0 3,690,674 4,372,053 3,807,836 0 0 11,599,243 0 0 11,599,243 8,713,576 0 0 4,000 0 0 79,000 131,680 0 1,171,475 0 0 0 1,171,475 1,231,210 199,334 0 0 0 0 199,334 62,608 82,455 0 0 0 13,361 95,816 354,168 5,067,889 0 0 0 0 5,067,889 5,322,477 $ 39,561,264 $ 2,581,115 $ 11,708,072 $ 0 $'' 32,085,140 $ 94,021,652 $ 81,030,390 $ 0 $ 0 $ 6,642,979 $ 0 $ 0 $ 9,649,609 $ 11,960,030 .. 0 0 0 0 0 107,048 324,437 0 0 (407,425) 0 0 32,470,076 19,966,440 87,739,176 1,054,934 0 0 0 88,794,110 83,008,813 3,551,070 0 0 0 0 3,551,070 3,391,230 24,906,711 5,332,872 0 0 0 30,239,583 25,178,212 0 0 0 97,278,388 0 97,278,388 72,381,073 $ 116,196,957 $ 6,387,806 $ 6,235 554 $ 97,278,388 $ 0 $ 262,089 884 $ 216,210 235 $ 155,758,221 $ 8,968,921 $ 17,943,626 $ 97,278,388 $ 32,085,140 $ 356,111,536 $ 297,240,625' INTEGRAL PART OF THIS STATEMENT 5 City of Renton-1997 CAFR ' COMBINED STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES Page 1 of 1 FOR ALL GOVERNMENTAL FUND TYPES YEAR ENDED DECEMBER 31,1997 With Comparative Totals for Year Ended December 31,1996 ' GOVERNMENTAL FUND TYPES COMPARATIVE TOTALS SPECIAL DEBT CAPITAL (MEMORANDUM ONLY) GENERAL REVENUE SERVICE PROJECTS 1997 1996 ' REVENUES Taxes $ 23,464,646 $ 11,374,221 $ 3,064,990 $ 2,146,957 $ 40,050,814 $ 36,836,487 , Licenses And Permits 2,106,201 39,648 0 1,789,501 3,935,350 3,134,890 Intergovernmental Revenues 2,573,215 1,591,706 0 3,226,696 7,391,617 10,445,165 Charges For Services 3,830,908 1,715,387 0 1,920 5,548,215 5,345,264 Fines And Forfeits 699,918 33,643 0 0 733,561 958,082 Special Assessments 0 0 393,961 0 393,961 857,664 Contributions 0 800,000 0 0 800,000 0 Interest 1,054,477 432,033 347,252 416,254 2,250,016 2,194,257 Miscellaneous Revenues 96,189 477,145 0 34,883 608,217 619,927 ' TOTALREVENUES $ 33,825,554 $ 16,463,783 $ 3,806,203 $ 7,616,211 $ 61,711,751 $ 60,391,736 EXPENDITURES ' Current: General Govemment $ 6,883,085 $ 1,792,130 $ 0 $ 0 $ 8,675,215 $ 8,420,834 Security Of Persons And Property 19,249,622 0 0 0 19,249,622 18,346,795 Physical Environment 1,708,461 0 0 0 1,708,461 1,759,571 , Transportation 0 4,896,235 0 5,002,884 9,899,119 13,570,398 Economic Environment 2,658,068 755,966 0 0 3,414,034 3,022,503 Mental And Physical Health 7,570 0 0 0 7,570 5,746 Culture and Recreation 0 5,592,278 0 0 5,592,278 5,426,701 Capital Outlay 41,172 3,455,343 0 11,863,176 15,359,691 4,835,459 Debt Service: Principal Retirement 33,018 0 2,240,878 0 2,273,896 2,899,424 ' Interest 8 Fiscal Charges 8,543 0 1,264,688 252,494 1,525,725 1,033,938 TOTAL EXPENDITURES $ 30,589,539 $ 16,491,952 $ 3,505,566 $ 17,118,554 $ 67,705,611 $ 59,321,369 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ 3,236,015 $ (28,169) $ 300,637 $ (9,502,343) $ (5,993,860) $ 1,070,367 OTHER FINANCING SOURCES(USES) Proceeds Of Long-Terre Debt $ 0 $ 0 $ 1,443,899 $ 14,697,744 $ 16,141,643 $ 553,337 , Interfund Loan Proceeds 0 0 0 0 0 148,000 Interfund Loan Repayments 0 0 0 0 0 (148,000) Operating Transfers In 0 78,171 0 6,605,704 6,683,875 1,414,044 ' Operating Transfers(Out) (3,415,226) (731,875) (1,204,657) (2,505,000) (7,856,758) (2,057,379) Other Financing(Uses) 0 (60,334) 0 (178,215) (238,549) 0 Intergovernmental Agreements 0 0 0 0 0 0 Sale Of General Fixed Assets 38,261 151,193 0 8,303 197,757 267,709 , Funds Remitted to Bond Trustee 0 0 (1,410,279) 0 (1,410,279) 0 TOTAL OTHER FINANCING SOURCES(USES) $ (3,37065) $ (56 ,845) $ (1,171;037) $ 18,628,536 $ 13,517,689 $ 177,711 EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (140,950) $ (591,014) $ (870,400) $ 9,126,193 $ 7,523,829 $ 1,248,078 FUND BALANCE JANUARY 1 6,854,563 9,254,649 3,790,030 8,572,108 28,471,350 27,162,776 ' Residual Equity Transfers In 0 335,500 1,069 0 336,569 3,398,129 Residual Equity Transfers Out (335,500) 0 (1,069) 0 (336,569) (3,337,633) Prior Period Corrections 0 0 0 (4,000) (4,000) 0 FUND BALANCE DECEMBER 31 $ 6,378,113 $ 8,999,135 $ 2,919,630 $ 17,694,301 $ 35,991,179 $ 28,471,350 ' THEACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT 6 , City of Renton-1997 CAFR COMBINED STATEMENT OF REVENUES,EXPENDITURES Page 1 of 4 AND CHANGES IN FUND BALANCES,BUDGET AND ACTUAL GENERAL,SPECIAL REVENUE,DEBT SERVICE, AND CAPITAL PROJECTS FUND TYPES YEAR ENDED DECEMBER 31,1997,With Comparative Actual Totals for Year Ended December 31,1996 GENERALFUND VARIANCE FAVORABLE BUDGET ACTUAL <UNFAVORABLE REVENUES Taxes $ 23,041,968 $ 23,464,646 $ 422,678 Licenses And Permits 1,174,953 2,106,201 931,248 Intergovernmental Revenues 2,591,108 2,573,215 (17,893) Charges For Services 3,309,460 3,830,908 521,448 Fines And Forfeits 723,000 699,918 (23,082) Special Assessments 0 0 0 Contributions 0 0 0 Interest 555,000 1,054,477 499,477 Miscellaneous Revenues 160,645 96,189 (64,456) TOTAL REVENUES $ 31,556,134 $ 33,825,554 $ 2,269,420 EXPENDITURES Current: General Government $ 7,236,191 $ 6,883,085 $ 353,106 Security Of Persons And Property 19,777,731 19,249,622 528,109 Physical Environment 1,748,629 1,708,461 40,168 Transportation 0 0 0 Economic Environment 3,048,894 2,658,068 390,826 Mental And Physical Health 10,296 7,570 2,726 Culture and Recreation 0 0 0 Capital Outlay 54,250 41,172 13,078 Debt Service: Principal Retirement 38,818 33,018 5,800 Interest&Fiscal Charges 8,544 8,543 1 TOTAL EXPENDITURES $ 31,923,353 $ 30,589,539:, $ 1,333,814'' EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ (367,219) $ 3,236,015 $ 3,603,234 OTHER FINANCING SOURCES(USES) Proceeds Of Long-Term Debt $ 0 $ 0 $ 0 Interfund Loan Proceeds 0 0 0 Interfund Loan Repayments 0 0 0 Operating Transfers In 0 0 0 Operating Transfers(Out) (3,561,914) (3,415,226) 146,688 Other Financing Sources(Uses) 2,000 0 (2,000) Intergovemmental Agreements 0 0 0 Sale Of General Fixed Assets 0 38,261 38,261 Funds Remitted to Bond Trustee 0 0 0 TOTAL OTHER FINANCING SOURCES(USES) $ (3,559,914)' $ (3,376,965) $ 182,949 EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (3,927,133) $ (140,950) $ 3,786,183 FUND BALANCE JANUARY 1 6,720,739 6,854,563 133,824 Residual Equity Transfers In 0 0 0 Residual Equity Transfers(Out) (335,500) (335,500) 0 Prior Period Corrections 0 0 0 FUND BALANCE.DECEMBER 31 $ 2,458,106 $ 6,378,113 $ 3,920,007 b THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT an 7 City of Renton-1997 CAFR , COMBINED STATEMENT OF REVENUES,EXPENDITURES Page 2 of 4 AND CHANGES IN FUND BALANCES,BUDGET AND ACTUAL GENERAL,SPECIAL REVENUE,DEBT SERVICE, AND CAPITAL PROJECTS FUND TYPES YEAR ENDED DECEMBER 31,1997,With Comparative Actual Totals for Year Ended December 31,1996 SPECIAL REVENUE FUND TYPES VARIANCE ' FAVORABLE BUDGET ACTUAL <UNFAVORABLE REVENUES Taxes $ 9,910,819 $ 11,374,221 $ 1,463,402 Licenses And Permits 20,000 39,648 19,648 Intergovernmental Revenues 1,672,193 1,591,706 (80,487) Charges For Services 1,623,583 1,715,387 91,804 ' Fines And Forfeits 19,800 33,643 13,843 Special Assessments 0 0 0 Contributions 0 800,000 800,000 , Interest 431,500 432,033 533 Miscellaneous Revenues 513,583 477,145 (36,438) TOTAL REVENUES $ 14,191,478 $ 16,463,783 $ 2,272,305 EXPENDITURES , Current: General Government $ 1,829,185 $ 1,792,130 $ 37,055 Security Of Persons And Property 0 0 0 Physical Environment 0 0 0 Transportation 5,125,756 4,896,235 229,521 Economic Environment 825,248 755,966 69,282 Mental And Physical Health 0 0 0 Culture and Recreation 5,868,731 5,592,278 276,453 Capital Outlay 7,621,212 3,455,343 4,165,869 Debt Service: Principal Retirement 0 0 0 Interest&Fiscal Charges 0 0 0 TOTAL EXPENDITURES $ 21,270,132 $ 16,491,952 $ 4,778,180 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ (7,078,654) $ (28,169) $ 7,050,485 OTHER FINANCING SOURCES(USES) Proceeds Of Long-Term Debt $ 0 $ 0 $ 0 ' Interfund Loan Proceeds 0 0 0 Interfund Loan Repayments 0 0 0 Operating Transfers In 75,000 78,171 3,171 Operating Transfers(Out) (728,704) (731,875) (3,171) Other Financing Sources(Uses) 0 (60,334) (60,334) Intergovernmental Agreements 0 0 0 Sale Of General Fixed Assets 210,179 151,193 (58,986) ' Funds Remitted to Bond Trustee 0 0 0 TOTAL OTHER FINANCING SOURCES(USES) $ (443,525) $ (562,845) $ (119,320) EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (7,522,179) $ (591,014) $ 6,931,165 FUND BALANCE JANUARY 1 8,964,488 9,254,649 290,161 ' Residual Equity Transfers In 335,500 335,500 0 Residual Equity Transfers(Out) 0 0 0 Prior Period Corrections 0 0 0 FUND BALANCE DECEMBER 31 $ 1,777,809 $ 8,999,135 $ 7,221,326 THE ACCOMPANYING NOTES ARE AN 8 , City of Renton-1997 CAFR Page 3 of 4 DEBT SERVICE FUND TYPES CAPITAL PROJECTS FUND TYPES VARIANCE VARIANCE FAVORABLE FAVORABLE BUDGET ACTUAL <UNFAVORABLE> BUDGET ACTUAL <UNFAVORABLE $ 2,893,300 $ 3,064,990 $ 171,690 $ 2,050,000 $ 2,146,957 $ 96,957 " 0 0 0 1,530,000 1,789,501 259,501 0 0 0 10,916,965 3,226,696 (7,690,269) 0 0 0 1,500 1,920 420 0 0 0 0 0 0 573,734 393,961 (179,773) 0 0 0 0 0 0 0 0 0 282,351 347,252 64,901 150,000 416,254 266,254 0 0 0 34,884 34,883 (1) $ 3,749;385 $ 3,806,203 $ 56,818 $ 14,683,349 $ 7,616,211 $ (7,067,138) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 13,960,442 5,002,884 8,957,558 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 21,808,670 11,863,176 9,945,494 2,398,979 2,240,878 158,101 160,000 0 160,000 1,318,583 1,264,688 53,895 288,598 252,494 36,104 $ 3,717,562 ' $ 3,505,566 $ 211,996 $ 36,217,710 -r$ 17,118,554 $ 19,099,156 $ 31,823 $ 300,637 $ 268,814 $ (21,534,361) $ (9,502,343) $ 12,032,018 $ 1,443,899 $ 1,443,899 $ 0 $ 14,857,744 $ 14,697,744 $ (160,000) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6,855,704 6,605,704 (250,000) (1,185,519) (1,204,657) (19,138) (2,505,000) (2,505,000) 0 0 0 0 0 (178,215) (178,215) 0 0 0 0 0 0 0 0 0 0 8,303 8,303 (1,410,279) (1,410,279) 0 0 0 0 $ (1,151,899) $, (1,171,037) $ (19,138)_ $ 19,208,448 $ 18,628,536 $ (579,912) $ (1,120,076) $ (870,400) $ 249,676 $ (2,325,913) $ 9,126,193 $ 11,452,106 3,464,244 3,790,030 325,786 4,271,353 8,572,108 4,300,755 1,069 1,069 0 0 0 0 (1,069) (1,069) 0 0 0 0 0 0 0 0 (4,000) (4,000) $ 2,344,168 $ 2,919,630 $ 575,462 $ 1,945,440 ;$ [7.694,301' $ 15,748186( INTEGRAL PART OF THIS STATEMENT 9 City of Renton-1997 CAFR COMBINED STATEMENT OF REVENUES,EXPENDITURES Page 4 of 4 AND CHANGES IN FUND BALANCES,BUDGET AND ACTUAL GENERAL,SPECIAL REVENUE,DEBT SERVICE, AND CAPITAL PROJECTS FUND TYPES YEAR ENDED DECEMBER 31,1997,With Comparative Actual Totals for Year Ended December 31,1996 COMPARATIVE TOTALS (MEMORANDUM ONLY) VARIANCE FAVORABLE 1996 BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES ' Taxes $ 37,896,087 $ 40,050,814 $ 2,154,727 $ 36,836,487 Licenses And Permits 2,724,953 3,935,350 1,210,397 3,134,890 Intergovernmental Revenues 15,180,266 7,391,617 (7,788,649) 10,445,165 Charges For Services 4,934,543 5,548,215 613,672 5,345,264 , Fines And Forfeits 742,800 733,561 (9,239) 958,082 Special Assessments 573,734 393,961 (179,773) 857,664 Contributions 0 800,000 800,000 0 Interest 1,418,851 2,250,016 831,165 2,194,257 Miscellaneous Revenues 709,112 608,217 (100,895) 619,927 TOTAL REVENUES $ 64,180,346 $ 61,711,751 $ (2,468,595) $ 60,391,736 EXPENDITURES Current: General Government $ 9,065,376 $ 8,675,215 $ 390,161 $ 8,420,834 Security Of Persons And Property 19,777,731 19,249,622 528,109 18,346,795 Physical Environment 1,748,629 1,708,461 40,168 1,759,571 Transportation 19,086,198 9,899,119 9,187,079 13,570,398 Economic Environment 3,874,142 3,414,034 460,108 3,022,503 Mental And Physical Health 10,296 7,570 2,726 5,746 , Culture and Recreation 5,868,731 5,592,278 276,453 5,426,701 Capital Outlay 29,484,132 15,359,691 14,124,441 4,835,459 Debt Service: Principal Retirement 2,597,797 2,273,896 323,901 2,899,424 Interest&Fiscal Charges 1,615,725 1,525,725 90,000 1,033,938 TOTAL EXPENDITURES $ 93,128,757 $ 67,705,611 $ 25,423,146 $ 59,321,369 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ (28,948,411) $ (5,993,860) $ 22,954,551 $ 1,070,367 , OTHER FINANCING SOURCES(USES) Proceeds Of Long-Term Debt $ 16,301,643 $ 16,141,643 $ (160,000) $ 553,337 Interfund Loan Proceeds 0 0 0 148,000 Interfund Loan Repayments 0 0 0 (148,000) Operating Transfers In 6,930,704 6,683,875 (246,829) 1,414,044 Operating Transfers(Out) (7,981,137) (7,856,758) 124,379 (2,057,379) Other Financing Sources(Uses) 2,000 (238,549) (240,549) 0 Intergovernmental Agreements 0 0 0 0 Sale Of General Fixed Assets 210,179 197,757 (12,422) 267,709 Funds Remitted to Bond Trustee (1,410,279) (1,410,279) 0 0 TOTAL 0THERFINANCING SOURCES(USES) $ 14,053,110 $ 13,517,689 $ (535,421) $ 177,711 EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER , EXPENDITURES AND OTHER FINANCING USES $ (14,895,301) $ 7,523,829 $ 22,419,130 $ 1,248,078 FUND BALANCE JANUARY 1 23,420,824 28,471,350 5,050,526 27,162,776 ' Residual Equity Transfers In 336,569 336,569 0 3,398,129 Residual Equity Transfers(Out) (336,569) (336,569) 0 (3,337,633) Prior Period Corrections 0 (4,000) (4,000) 0 FUND BALANCE DECEMBER 31 $ 8,525,523 $ 35,991,179 $ 27,465,656 $ 28,471,350- ' THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT 10 ' City of Renton-1997 CAFR COMBINED STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND EQUITY Page 1 of 1 ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS FOR THE YEAR ENDED DECEMBER 31,1997 With Comparative Totals for Year Ended December 31, 1996 PROPRIETARY FUND TYPES FIDUCIARY COMPARATIVE TOTALS INTERNAL FUND TYPE (MEMORANDUM ONLY) ENTERPRISE SERVICE PENSION TRUST 1997 1996 OPERATING REVENUES: Charges for Services $ 29,112,936 $ 6,924,960 $ 0 $ 36,037,896 $ 33,739,312 Fire Insurance Premiums 0 0 69,305 69,305 81,721 Property Taxes 0 0 161,000 161,000 297,000 Interest Revenue 0 0 2,530,975 2,530,975 364,054 Other Operating Revenue 1,603,673 27,087 0 1,630,760 1,905,555 TOTAL OPERATING REVENUE $ 30,716;609 $ 6,952,047 $ 2,761,280 $ 40,429,936 $ 36,387,642 OPERATING EXPENSES: Operations and Maintenance $ 19,180,586 $ 1,268,924 $ 0 $ 20,449,510 $ 19,134,129 Benefit Payments 0 4,027,342 294,403 4,321,745 4,091,667 Professional Services 0 272,910 0 272,910 232,372 Administrative and General 1,790,202 452,250 10,880 2,253,332 2,197,705 Insurance 10,446 385,090 0 395,536 386,863 Taxes 2,614,407 0 0 2,614,407 2,512,941 Depreciation 3,110,143 443,869 0 3,554,012 3,295,216 TQTAL OPERATING EXPENSES $ 26,705,784 $ 6,850,385 $ 305,283 $ 33,861,452 $ 31,850,893 OPERATING INCOME(LOSS) $ 4,010,825 $ 101,662 $ 2,455,997 $ 6,568,484 $ 4,536,749 NON-OPERATING REVENUE(EXPENSE): Interest Revenue $ 955,975 $ 238,249 $ 0 $ 1,194,224 $ 1,288,760 Gain(Loss)on Sale of Assets 0 27,486 0 27,486 21,940 OtherNon-operating Revenue(Expense) 298,921 289,807 0 588,728 541,002 Interest Expense (1,929,915) (16,349) 0 (1,946,264) (2,131,466) Arbitrage Expense (28,511) (1,826) 0 (30,337) (8,772) Amortization of Debt Discount and Expense (68,857) (25,153) 0 (94,010) (78,479) NON-OPERATING REVENUE NET OF EXPENSES $ (772,387) $ 512,214 $ 0 $ (260,173) $ (367,015) INCOME(LOSS)BEFORE OPERATING TRANSFERS $ 3,238,438 $ 613,876 $ 2,455,997 $ 6,308,311 $ 4,169,734 OPERATING TRANSFERS IN $ 684,883 $ 488,000 $ 0 $ 1,172,883 $ 643,335 OPERATING TRANSFERS OUT 0 0 0 0 0 NET INCQWIE(LOSS) $ 3,923,321 $ 1,101,876 $ 2,455,997 $ 7,481,194 $ 4,813;069 Depreciation Reducing Grant Contributed Capital 130,639 0 0 130,639 130,760 INCREASE(DECREASE)IN RETAINED EARNINGS $ 4,053,960 $ 1,101,876 $ 2,455,997 $ 7,611,833 $ 4,943,829 RETAINED EARNINGS,JANUARY 1 $ 24,366,302 $ 4,203,140 $ 3,779,557 $ 32,348,999 $ 27,471,926 Prior Period Corrections-Note 18 65,375 0 0 65,375 0 RETAINED EARNINGS,JANUARY 1,RESTATED $ 24,431,677 $ 4,203,140 $ 3,779,557 $ 32,414,374 $ 27,471,926 Residual Equity Transfers In(Out) (27,856) 27,856 0 0 (66,756) RETAINED EARNINGS,DECEMBER 31 $ 28,457,781 $ 5,332,872 $ 6,235,554 $ 40,026,207 $ 32,348,999' CONTRIBUTED CAPITAL,JANUARY 1 $ 81,953,879 $ 1,054,934 $ 0 $ 83,008,813 $ 77,135,944 Capital Grants 281,101 0 0 281,101 1,129,063 Prior Period Corrections 0 0 0 0 0 Amortization on Capital Grants (130,639) 0 0 (130,639) (130,760) Other Contributed Capital 5,634,835 0 0 5,634,835 4,874,566 CONTRIBUTED CAPITAL,DECEMBER 31 $ 87,739,176 $ 1,054,934 $ 0 $ 88,794,110 $ 83,008,813 FUND:EQUITY,DECEMBER 31 $ 116,196,957 $ 6,387,806 $ 6,235,554 $ 128,820,317 $ 115,357,812 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT 11 City of Renton-1997 CAFR , COMBINED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31,1997 Page 1 of 2 , ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS With Comparative Totals forYear Ended December 31,1996 PROPRIETARY FUND TYPES COMPARATIVE TOTALS , INTERNAL (MEMORANDUM ONLY) ENTERPRISE SERVICE 1997 1996 , CASH FLOWS FROM OPERATING ACTIVITIES: Cash Received From Customers $ 29,077,713 $ 0 $ 29,077,713 $ 27,350,163 Cash Received From Other Funds for Goods and Services 237,903 6,947,524 7,185,427 6,569,144 Cash Payments to Suppliers for Goods and Services (14,887,308) (5,535,379) (20,422,687) (19,406,518) ' Cash Paid to Other Funds for Goods and Services (3,316,118) (449,720) (3,765,838) (3,688,040) Cash Paid to Employees (3,539,204) (492,871) (4,032,075) (3,625,329) Cash Paid for Taxes (1,580,386) 0 (1,580,386) (1,518,244) ' Cash Paid for Retirees 0 0 0 0 Other Operating Receipts 1,603,673 23,929 1,627,602 1,875,120 OtherNon-OperatingReceipts (1,003) 392,993 391,990 213,683 NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES $ 7,595,270 $ 886,476 $ 8,481,746 $ 7,769,979 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Proceeds From Interfund Loans $ 0 $ 0 $ 0 $ 0 Operating Grants Received 81,943 0 81,943 67,218 Operating Transfers From Other Funds 585,338 488,000 1,073,338 631,450 Cash Received From Taxes on Fire Insurance Premiums 0 0 0 0 Cash Received From Property Taxes 0 0 0 0 Operating Transfers To Other Funds (27,856) 0 (27,856) 0 Repayments on Interfund Loans (63,637) 7,294 (56,343 (57,641) NET CASH PROVIDED(USED)BY NONCAPITAL FINANCING ACTIVITIES $ 575,788 $ 495,294 $ 1,071,082 $ 641,027 CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: Proceeds From Sale of Bonds $ 3,999 $ 24,871 $ 28,870 $ 0 Payments on Bond Issuance and Registration Fees (2,632) 0 (2,632) (2,889) Proceeds From State Long-Term Loans 84,240 0 84,240 1,184,189 Proceeds From Sale of Equipment 0 27,486 27,486 21,940 , Acquisition and Construction of Capital Assets (8,968,041) (679,303 (9,647,344) (8,152,007) Payments Received from Intergovernmental Loan 75,748 0 75,748 0 Capital Contributions 1,672,814 0 1,672,814 1,699,079 Capital Grants 355,825 13,022 368,847 1,247,484 Principal Payments on Bonds 2,211,066 Interest Payments on Bonds (1,969,516) (55,970) (2,267,036) (2,282,486) Interest Payments on State Long-Term Loans ( ) (18,539) (1,(71,055) (2,(52,368) Y 9 (71,233) 0 (71,233) (52,016) Residual Equity Transfer Out 0 27,856 27,856 (66,756) NET CASH PROVIDED(USED)BY CAPITAL FINANCING ACTIVITIES $ (11,029,862) $ (660,577) $ (11,690,439) $ (8,497,830) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds From Sale of Investments $ 8,748,629 $ 2,606,050 $ 11,354,679 $ 14,884,056 ' Payments for Investments (8,588,739) (2,699,697) (11,288,436) (15,240,368) Interest on Investments 1,024,686 256,367 1,281,053 1,583,018 NET CASH PROVIDED(USED)BY INVESTING ACTIVITIES $ 1,184,576 $ 162,720 $ 1,347,296 $ 1,226,706 , NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS $ (1,674,228) $ 883,913 $ (790,315) $ 1,139,882 CASH AND CASH EQUIVALENTS,JANUARY 1 $ 16,654,723 $ 2,512,706 $ 19,167,429 $ 18,027,547 CASH AND CASH EQUIVALENTS,DECEMBER 31 $ 14,980,495 $ 3,396,619 $ 18,377,114 $ 19,167,429: CASH AT THE END OF THE YEAR CONSISTS OF: ' Cash and Cash Equivalents $ 6,352,927 $ 3,396,619 $ 9,749,546 $ 6,514,119 Cash Restricted for. Deposits 21,379 0 21,379 20,964 Revenue Bond Debt Service 5,012,567 0 5,012,567 7,843,495 Construction Account 3,593,622 0 3,593,622 4,788,851 TOTAL CASH AT THE END OF THE YEAR $ 14,980,495 $ 3,396,619 $ 18,377,114 $ 19,167,429 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT 12 City of Renton-1997 CAFR COMBINED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31,1997 Page 2 of 2 ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS With Comparative Totals for Year Ended December 31,1996 PROPRIETARY FUND TYPES COMPARATIVE TOTALS INTERNAL (MEMORANDUM ONLY) ENTERPRISE SERVICE 1997 1996 RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES: Operating Income(Loss) $ 4,010,825 $ 101,662 $ 4,112,487 $ 4,092,107 M Adjustments to Reconcile Operating Income(Loss) to Net Cash Provided(Used)By Operating Activities: Depreciation and Amortization of Deferred Charge $ 3,126,143 $ 443,869 $ 3,570,012 $ 3,302,419 Other Non-Operating Revenue 346,678 206,289 552,967 473,518 (Increase)Decrease in Accounts Receivable 105,582 26,600 132,182 239,923 (Increase)Decrease in Interest on Investments 0 0 0 0 (Increase)Decrease in Due From Other Funds/Govemmental (111,419) 174,377 62,958 (234,024) �. (Increase)Decrease in Inventory/Prepaid Items (97,275) (12,969) (110,244) (44,117) Increase(Decrease)in Vouchers/Contracts/Retainage Payable 129,356 (20,967) 108,389 (118,099) Increase(Decrease)in Due to Other Funds/Governmental (62,979) 15,300 (47,679) (30,019) Increase(Decrease)in Payables/Other Short Term Liabilities (32,104) 3,292 (28,812) (27,626) Increase(Decrease)in Customer Deposits 25,830 0 25,830 42,950 Increase(Decrease)in Deferred Revenues 103,427 0 103,427 (54,355) Increase(Decrease)in Accrued Employee Leave Benefits 51,206 8,758 59,964 40,142 Increase(Decrease)in Claims Incurred But Not Reported 0 (59,735) (59,735) 87,160 a Total Adjustments $ 3,584,445 $ 784,814 $ 4,369,259 $ 3,677,872 NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES $ 7,595,270 $ 886,476 $ 8,481,746 $ 7,769,979''' SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES: Fixed Assets Contributed By Developers $ 4,155,516 $ 0 $ 4,155,516 $ 3,169,227 Asset Trade-In 0 0 0 29,755 TOTAL NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES $ 4,155,516 $ 0 $ 4,155,516 $ 3,198,982 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT 13 �y � �'NT� � NOTES TO THE FINANCIAL STATEMENTS Financial statements need to be supplemented with additional information to fairly present the government's financial position and results of operations in conformity with Generally Accepted Accounting Principles. Additional information is often too detailed or unsuitable for presentation on the face of the financial statements. Therefore, the notes provide this information and become an integral part of the financial statements. d. 14 NOTES TO THE FINANCIAL STATEMENTS r INDEX ITEM _ PAGE ' NOTE 1: SIGNIFICANT ACCOUNTING POLICIES..........................................................................................................................17 Table1: Property Tax Levy.........................................................................................................................................20 ' Table 2: Fixed Asset Service Life................................................................................................................................21 Table3: Employee Leave Payable..............................................................................................................................21 NOTE 2: STEWARDSHIP,COMPLIANCE AND ACCOUNTABILITY..............................................................................................21 , NOTE 3: CASH&INVESTMENTS....................................................................................................................................................22 Table 4: Reconciliation of Cash and Investments by Fund Group..............................................................................22 Table 5: Classification of Investments as of December 31, 1997................................................................................22 ' NOTE4: DEFERRED COMPENSATION..........................................................................................................................................22 NOTE 5: RECEIVABLES AND PAYABLES......................................................................................................................................23 ' Table 6: Net Receivables and Payables......................................................................................................................23 Table 7: Interfund Receivables and Payables.............................................................................................................23 Table 8: Interfund Loans/Advances-Receivable and Payable...................................................................................24 Table 9: Due from Other Governmental Units.............................................................................................................24 ' NOTE 6: OPERATING AND RESIDUAL EQUITY TRANSFERS......................................................................................................24 Table 10: Residual Equity Transfers.............................................................................................................................25 Table11: Operating Transfers.......................................................................................................................................25 , NOTE7: FIXED ASSETS..................................................................................................................................................................25 Table 12: Changes in General Fixed Assets.................................................................................................................25 Table 13: Construction Work In Progress......................................................................................................................26 , Table 14: Proprietary Property. Plant&Equipment.......................................................................................................26 NOTE8: PREPAID ITEMS................................................................................................................................................................26 NOTE9: JOINT VENTURE................................................................................................................................................................26 ' Table 15: Joint Venture Cost Distribution......................................................................................................................27 Table16: Balance Sheet...............................................................................................................................................27 Table 17: Statement of Revenues, Expenses and Changes in Retained Earnings.......................................................28 Table18: Joint Venture Equity......................................................................................................................................28 NOTE 10: PENSION PLAN&OTHER POST EMPLOYMENT BENEFITS.........................................................................................28 ' Table 19: PERS and LEOFF Information By Plan.........................................................................................................29 Table 20: PERS and LEOFF Information By System....................................................................................................29 Table 21: Unfunded Pension Benefit Obligation............................................................................................................30 Table 22: Fire Pension Ten-Year Funding Progress Data............................................................................................31 , Table 23: Fire Pension Ten-Year Revenues and Expenses.........................................................................................31 NOTE 11: CONSTRUCTION COMMITMENTS...................................................................................................................................31 Table24: Construction Commitments...........................................................................................................................31 , NOTE 12: LONG-TERM DEBT AND CAPITAL LEASES..................................................................................................................32 Table 25: Long-Term Debt Additions and Retirements Summary.................................................................................32 Table 26: Outstanding Debt as of December 31, 1997.................................................................................................33 ' Table27: Pro Rata Debt................................................................................................................................................34 Table28: Debt Limit Capacities.....................................................................................................................................34 Table29: Refunded Bonds............................................................................................................................................34 Table 30: Changes to Refunded Bonds Payable..........................................................................................................35 Table 31: Debt Service Requirement to Maturity...........................................................................................................35 Table 32: Capital Lease Obligations..............................................................................................................................35 NOTE 13: DEFERRED CHARGES IN PROPRIETARY FUNDS.........................................................................................................36 , NOTE 14: RESERVATIONS AND DESIGNATIONS OF FUND EQUITY............................................................................................36 Table 33: Reservations of Fund Equity.........................................................................................................................36 , Table 34: Unreserved Designated Fund Equity.............................................................................................................36 15 , .n NOTES TO THE FINANCIAL STATEMENTS INDEX ITEM PAGE ■r NOTE 15: SEGMENT INFORMATION FOR ENTERPRISE FUNDS...................................................................................................36 Table 35: Segment Information for Enterprise Funds....................................................................................................36 NOTE 16: LITIGATION .......................................................... ......37 ....................................................................................................... NOTE17: RISK MANAGEMENT.........................................................................................................................................................37 Table36: Risk Management..........................................................................................................................................37 r Table 37: Outstanding Claims Table 38: Changes in Claims Liabilities.........................................................................................................................38 NOTE18: SUBSEQUENT EVENTS....................................................................................................................................................38 r r ' 16 City of Renton Notes to the Financial Statements ' NOTE 1 —SIGNIFICANT ACCOUNTING POLICIES The City of Renton was incorporated on September 6, 1901, and operates under the laws of the State of Washington applicable to a Non-Charter code city with a Mayor/Council form of government. Renton is served by a full-time Mayor and seven part-time Council members,all elected at large to four-year terms. The City provides the full range of municipal services authorized by State law, 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 of Renton,which conform to generally accepted accounting principles for governments, are regulated by the Washington State Auditor's Office, Division of Municipal Corporations. The City's significant accounting policies are described in the following notes. , THE REPORTING ENTITY Based on the criteria of Statement No. 14 of the Governmental Accounting Standards Board (GASB), the City's Comprehensive Annual , Financial Report (CAFR)includes all funds, account groups, agencies and boards for which the City is financially accountable. Financial accountability is defined as follows: A primary government has substantial authority to appoint a voting majority of a component unit's board;the primary government has the ability to impose its will on a component unit; the component unit can provide a financial benefit to, or impose a financial burden on the primary government; and the component unit is fiscally dependent on the primary government. ' The Renton Housing Authority has been excluded because the City neither reviews its budget nor is obligated to finance any of its deficits. The Mayor does appoint members to the Housing Authority Board, but the Board is fiscally independent of the City. BASIS OF PRESENTATION-FUND ACCOUNTING , The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. Each fund is accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, ' revenues and expenditures or expenses, as appropriate. The City's resources are allocated to and accounted for in individual funds according to the purpose for which they are spent and how they are controlled. The three broad fund categories, seven generic fund types,and two account groups presented in this report are described below. Governmental Fund Types ' All Governmental Funds are accounted for on a spending or"financial flow"measurement focus. This means that generally only current assets and current liabilities are included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental Fund operating statements focus on measuring changes in financial position, rather than net income; they present increases(revenues and other financing sources) and decreases(expenditures and other financing uses)in net current assets. The General Fund is the general operating fund of the City. It accounts for all financial resources and transactions except those required to be accounted for in another fund. Special Revenue Funds account for the proceeds of specific revenue sources (other than special assessments, and major capital projects)that are legally restricted to expenditures for specified purposes. Debt Service Funds account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. Capital Projects Funds account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by Proprietary Funds. Proprietary Fund Types Proprietary Funds are accounted for on a cost of services or"capital maintenance"measurement focus. This means that all assets and all liabilities (whether current or non-current) associated with their activity are included on their balance sheets. Their reported fund equity(net total assets) is segregated into contributed capital and retained earnings components. Proprietary Fund operating statements present increases(revenues and gains) and decreases (expenses and losses)in net total assets. The Proprietary Fund measurement focus is based upon determination of net income,financial position,and reporting of cash flows. Enterprise Funds account for operations that are self-supported through user charges. The enterprise is financed and operated like a private business enterprise, which requires periodic determination of revenues earned, expenses incurred, and net income for capital maintenance,public policy, management controls,and accountability. Internal Service Funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the City or to other governments. 17 City of Renton Notes to the Financial Statements Pursuant to GASB Statement Number 20, "Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting,"the City has chosen to apply all applicable GASB Pronouncements and only FASB Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins issued on or before November 30, 1989, unless they conflict with or contradict GASB Pronouncements. Fiduciary Fund Types Fiduciary Funds account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments, and other funds. These include Expendable Trust, Nonexpendable Trust, Pension Trust, and Agency Funds. City of Renton Fiduciary Funds do not include any Expendable or Nonexpendable Trust Funds. Pension Trust Funds are accounted for in essentially the same manner as Proprietary Funds. Agency Funds are custodial in nature (assets equal liabilities)and do not involve measurement of results and operations. Account Groups Account Groups are used to establish accounting control over the City's general fixed assets and general long-term debt. The City uses two account groups. The General Fixed Assets Account Group accounts for all fixed assets of the City other than those accounted for in Proprietary Funds. The General Long-Term Debt Account Group accounts for all long-term debt of the City except that accounted for in the Proprietary Funds. Comparative Data Comparative total data for the prior year has been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, comparative data has not been presented by fund type in each of the statements since their inclusion would make the statements unduly complex and difficult to read. Total Columns on Combined Statements Total columns on the combined statements are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or the reporting of cash flows in conformity with generally accepted accounting principles. The data is also not comparable to a consolidation. Interfund eliminations have not been made in the aggregation of the data. BASIS OF ACCOUNTING Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Modirled Accrual Basis of Accounting The modified accrual basis of accounting is followed in all Governmental Funds and Agency Funds. 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 pay current liabilities. Specific major revenue sources subject to accrual are discussed below. The portion of property taxes receivable at year-end that are received in January for the prior year's levy are recorded as revenue. The V remaining balance is not normally expected to be collected within 30 days after the current period and is,therefore, reported as deferred revenue. Grant revenues from cost reimbursement grants are considered earned and therefore available when the expenditure is incurred, in accordance with NCGA Statement 2. Interest on investments is recorded as revenue when earned. Special assessments and charges for services are recorded as revenue when billed and due within 30 days. Revenue sources which are not considered to meet the measurable and available criteria for revenue recognition include licenses and permits, fines and forfeitures, and other miscellaneous revenues since they are generally not measurable until received. Under the modified accrual basis, expenditures are recorded when the fund liability is incurred, except for principal and interest on general long-term debt, which are recorded when due. Purchases of fixed assets out of Governmental Funds are treated as expenditures during the year incurred and the assets are capitalized in the General Fixed Assets Account Group. Long-term liabilities, including vacation pay not currently due and payable, are accounted for in the General Long-Term Debt Account Group, except for long- term liabilities accounted for in the Proprietary Funds. Accrual Basis of Accounting The accrual basis of accounting is followed in all Proprietary Funds and the Pension Trust Fund. Revenues are recognized when earned and expenses are recognized when incurred. r 6 18 City of Renton Notes to the Financial Statements The revenues of the Waterworks and Solid Waste Utilities, which are based upon service rates authorized by the City Council, are determined by monthly billings to customers. Revenues of the Golf Course are based on user fees, and Airport revenue is based on lease agreements. Earned but unbilled revenues at year-end are accrued and reported in the financial statements. Fixed asset purchases are capitalized, and long-term liabilities are accounted for in the appropriate funds. BUDGETS AND BUDGETARY ACCOUNTING ' The City of Renton budgets its funds in accordance with the Revised Code of Washington(RCW)35A.33. In compliance with the Code, annual appropriated budgets are adopted for the General, Special Revenue, Debt Service and Capital Projects Funds. Any unexpended appropriations lapse at the end of the fiscal year. For Governmental Funds, there are no substantial differences between the budgetary ' basis and generally accepted accounting principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the financial statements include budgetary comparisons for annually budgeted Governmental Funds only. Budgets established for Proprietary and Trust Funds are"management budgets,"and are not legally required to be reported. Annual appropriated budgets are adopted at the fund level. Subsidiary revenue and expenditure ledgers are used to compare the budgeted amounts with actual revenues and expenditures. As a management control device, the subsidiary ledgers monitor expenditures for individual functions and activities by object class. ' The City of Renton's budget procedures are mandated by RCW 35A.33. The steps in the budget process are as follows: 1) Prior to November 1,the Mayor submits a proposed budget to the City Council. This budget is based on priorities established by the Council and , estimates provided by the City departments during the preceding months, and balanced with revenue estimates made by the Mayor. 2) The City Council conducts public hearings on the proposed budget in November and December. 3)The Council makes its 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. Copies of the budget are made available to the public. Transfers or revisions within funds are allowed, but only the City Council has the authority to increase or decrease a given fund's annual budget. This is accomplished by City ordinance. The budget was amended two times during 1997. Budget amounts presented in the basic financial statements include the original amounts,after all transfers and adjustments,as approved by the City Council. 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 reappropriated in the following year. At year-end,the City had encumbrances of$1,216,018. ASSETS,LIABILITIES AND FUND EQUITY Cash d Cash Equivalents All highly liquid investments (including restricted assets) with a maturity of three months or less when purchased are considered cash equivalents. Included in this category are all funds invested in the Local Government Investment Pool and Municipal Investors Account. Excluded from this category are cash balances held by Fiscal Agents since the City does not have discretionary use of these funds. Cash held by Fiscal Agents is included in an investment type account. Investments The City of Renton invests all short-term cash surpluses. A Surplus Bank Balance Fund is maintained to account for these residual investments and earnings are allocated to the General Fund. Investments are also held separately by several of the funds with interest earned directly for the benefit of each fund. Investments are reported on the financial statements at cost or amortized cost which approximates market, except for the assets held in the deferred compensation program which are valued at market. Washington State statutes provide for the City to hold investments consisting of obligations of the Federal government, repurchase agreements, prime banker's acceptances, and time certificates of deposit issued by Washington State depositories that participate in the Washington State Public Depository Protection Commission (WPDPC). The WPDPC is a multiple financial institution collateral pool administered by the Washington Public Deposit Protection Commission. Additional deposit and investment information is presented in Note 3. Inventories Inventories carried in Proprietary Funds are valued at average cost which approximates the market value. The inventory in the ' Waterworks Utility Fund is charged out at average cost plus a 20%handling fee when issued, and the inventory in the Equipment Rental Fund is issued at average cost. The inventory at the Golf Course is the merchandise that is sold to the public. This inventory is valued at actual cost. A physical count is taken at year-end at all inventory locations. Governmental Funds use the purchase method whereby ' inventory items are considered expenditures when purchased. The amount outstanding at year-end is immaterial and is, therefore, not included on the balance sheet. 19 ' City of Renton Notes to the Financial Statements Property Taxes Receivable The County Finance Director acts as an agent to collect property taxes levied in the county for all taxing authorities. Taxes are levied annually on January 1 on property value listed as of the prior August 31. Assessed values are established by the County Assessor at 100% of fair market value. A revaluation of all property is required every two years, however King County has the ability to revalue annually. Property taxes levied by the County Assessor and collected by the County Finance Director become a lien on the first day of the levy year and may be paid in two equal installments if the total amount exceeds$30. 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%and are subject to additional penalties if not paid as scheduled. At year-end, property taxes are recorded as a receivable with the portion not expected to be collected within 30 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$3.60 per$1,000 of assessed value. Of this amount, up to$.45 per thousand may be designated for contribution to the Firemen's Pension Fund if a report by a qualified actuary indicates that additional funds are required. The payment of principal and interest on Limited Tax (non-voted) Bonds issued by the City is made from the general levy. Accordingly, the issuance of Limited Tax General Obligation Bonds has the effect of reducing property taxes available for the general operations of City government. In 1997, the City levied $3.108 per$1,000 of assessed valuation for general purposes and $0.0892 for the Firemen's Pension Fund,for a total general tax levy of$3.6000. State law also provides that the City's operating levy may not exceed 106%of the largest single levy of the past three years. The State Constitution provides that the total of all taxes upon real and personal property by the State and all taxing entities, including the City,shall not in any year exceed 1% ($10 per thousand dollars) of the true and fair monetary value of such property. This limitation may be exceeded upon the approval of 60%of the City voters at an election in which the total vote exceeds 40%of the votes cast at the last preceding general election. For 1997,the City's general tax levy was$3.6000 and the excess levy for Unlimited General Obligation Bonds issued for the construction of Gene Coulon Memorial Beach Park and Senior Housing was$0.38781. A total of$3.98781 per$1,000 on a total assessed valuation of$3,610,647,947 per the King County Assessor's 1997 Annual Report. Estimated and actual property tax revenue is compared in the following table: Table 1: Prope Tax Lev ITEM ESTIMATED PROPERTY ACTUAL PROPERTY VARIANCE TAXES TAXES eneral Levy $12,996,187 $12,966,258 $ (29,929) Excess Levy 1,378,000 1,267,972 110,028 Totals $14,374,187 $14,234,230 $ 139,957 Assessments Receivable Unpaid special assessments receivable is reported in three accounts: current, delinquent,and deferred. Current assessments are those w due within one month;delinquent assessments are past due;and deferred assessments are due beyond one month. Revenue from the assessments is recognized as it becomes current-that is,both measurable and available to finance expenditures of the current period. Fixed Assets and Depreciation ~" The accounting and reporting treatment applied to the fixed assets associated with a fund are determined by its measurement focus. Fixed assets acquired in Governmental Funds are accounted for as expenditures in the fund when the assets are purchased and are capitalized in the General Fixed Asset Account Group at historical cost. Where historical cost is not known, assets are recorded at estimated historical cost. Donated assets are valued at estimated fair market value at the time received. Infrastructure such as roads, bridges and curbs are considered public property and are not capitalized in the General Fixed Assets Account Group. Governmental ' Fund assets are not depreciated. Fixed assets of the Enterprise and Internal Service Funds are recorded at historical cost, and are accounted for in their respective funds. Capital contributions are recorded as contributed capital and the assets are capitalized at their estimated fair market value at the date of donation. 20 City of Renton Notes to the Financial Statements Fixed assets used by Proprietary Funds are depreciated and the accumulated depreciation is reported in Proprietary Fund Balance Sheets. Annual depreciation is recorded as an expense of the fund. Depreciation is computed using the straight-line method over , estimated service life as follows: Table 2: Fixed Asset Service Life ' ASSET ESTIMATED SERVICE LIFE Buildings 25-50 years Non-Building Improvements 25-50 years Utility Plant 25-75 years ' Equipment 3-20 years 'See Note 7 for additional information Accumulated Unpaid Vacation and Sick Pay , Labor contracts with City of Renton employees call for the accumulation of vacation and sick leave. At termination of employment, employees with the required length of service may receive cash payments for all accumulated vacation leave to a maximum of 432 hours. Sick leave termination benefits are based on a percentage of accumulated sick leave up to a maximum of 480 hours. The ' payment is based on current wages at termination and date of hire. Accumulated amounts of vacation leave and related benefits are accrued as expenses when incurred in Proprietary Funds. The current , portion of the Enterprise Funds, $26,600, and the Internal Service Funds, $6,163, is included with the current liability accounts Accrued Wages Payable and Accrued Employee Benefits Payable. In Governmental Funds, only the current portion of the yearly accrual(based on last in-first out formula) left unpaid at the end of the fiscal year is recorded as fund liability and expenditure. The remainder of the liability is reported in the General Long-Term Debt Account Group. This reporting format is in compliance with GASB Statement 16. At year-end 1997, the Governmental Funds recorded current liabilities of $266,798 on the respective balance sheets and a long-term liability for the non-current portion of accumulated vacation and related benefits in the amount of$2,044,990 in the General Long-Term Debt Account Group. The unpaid liability in the Proprietary Funds at December 31 was$238,133. Accumulated sick leave and related benefits are also based on GASB Statement 16 which calls for accrual of Proprietary Fund liabilities and inclusion of Governmental Fund liabilities in the General Long-Term Debt Account Group. These amounts at December 31, 1997, were$176,448 and$1,645,684,respectively.The following table details the total vacation and sick leave liability: Table 3: Employee Leave Pa able ITEM CURRENT I LONG-TERM TOTAL General Governmental Funds $266,798 $ 0 $ 266,798 General Long-Term Debt 0 3,690,674 3,690,674 Proprietary Funds 32,763 414,581 447,344 Total Leave Benefits $299,561 $4,105,255 $4,404,816 Fund Equity-Reserves and Designations The City recognized in its reporting that assets are sometimes not "available spendable resources" or at times legally available for appropriations, because they are contractually or legally restricted for some specific future use. When this is the case, as for example with debt service,fund equity is"reserved." However,when management sets aside portions of fund equity based upon tentative future plans or for administrative convenience,these restrictions are reported as "designations"of unreserved fund equity. Designation is not used in Proprietary Funds. Direct Charges/Credits to Enterprise Funds Retained Earnings The Airport Fund has credited$130,639 directly to retained earnings,representing the retirement of Federal and State contributed capital for the current year. Risk Management and Risk Retention It is the City of Renton's policy to self-insure first level coverages for property, liability, worker's compensation, and employee medical coverages. For mid-level and catastrophic losses the City purchases both commercial insurance coverage, and reserves the right to invoke provisions of RCW 35A.31.060, which allows cities to levy a non-voted property tax increase to pay for uninsured claims. As of December 31, 1997, the Insurance Fund's unreserved retained earnings totaled$3,084,822. See Note 17 for additional information. ' NOTE 2-STEWARDSHIP,COMPLIANCE,AND ACCOUNTABILITY There have been no material violations of finance related legal or contractual provisions. 21 , City of Renton Notes to the Financial Statements NOTE 3- CASH&INVESTMENTS The City maintains an investment pool available for use by all funds. Interest earned on pooled investments is recorded in the General Fund. Investments are also held separately by several of the funds with interest earned directly for the benefit of each fund. DEPOSITS All deposits are covered entirely by Federal Depository Insurance (FDIC)or by collateral held in a multiple financial institution collateral pool administered by the Washington Public Deposit Protection Commission (WPDPC). The FDIC insures the City's deposits up to $100,000, and the WPDPC insures amounts over$100,000. The WPDPC provides for additional assessments against members of the pool on a pro rata basis. Accordingly, the deposits covered by WPDPC are considered to be insured and classified as risk category 1. The City had $60,516,815 in cash and investments at year-end, which consisted of $30,789,631 in the State Investment Pool and Municipal Investors Account, $29,094,620 in other investments, and $13,335 in petty cash. All cash in excess of current requirements was invested at year-end with bank deposits reporting a cash balance of $632,564. Table 4 displays the breakdown of cash and deposits by type of deposits and by fund type. Table 4: Reconciliation of Cash and Investments by Fund Group STATE UBTOTAL CASHTOTAL ALL INVESTMENT CASH RESTRICTED CASH&CASH RESTRICTED TOTAL CASH FUND GROUP CASH PooLIMIA' EQUIVALENTS CASH EQUIVALENTS INVESTMENTS I INVESTMENTS &INVESTMENTS General (12,177,405 $ 19,021,8 $ 6,844,45 $ 132,975 $ 6,977,434 $ 0 $ C $ 6,977,43 Special Revenue 2,356,92 1,795,00 4,151,92 4,151,923 4,713,697 8,865,62 Debt Service 1,367,51 405,00 1,772,51E 1,772,516 900,000 2,672,51 apital Projects 3,145,22C 4,239,00 7,384,22C 7,384,220 5,875,579 13,259,79 Enterprise 3,152,927 3,200,OOC 6,352,927 688,079 7,041,006 1,659,502 7,939,489 16,639,99 Internal Service 1,822,61 1,574,00 3,396,61 3,396,619 2,507,649 5,904,26 - rust&Agency 143,71 554,76 698,47 698,477 5,498,704 6,197,181 Total $ 188,490 $ 30,789,6311 $ 30,601,141 $ 821,05 $ 31,422,19 $ 21,155,1311 $ 7,939,48 $ 60,516,81 ' Municipal Investor Account INVESTMENTS Washington State statutes provide for the City to hold investments consisting of obligations of the Federal government, repurchase agreements,prime banker's acceptances,and time certificates of deposit with authorized Washington State savings and loan institutions. Additionally, the Firemen's Pension Fund is authorized to invest in mutual funds and obligations of the Federal, State, and Local government-owned public utilities. All investments are valued at cost or amortized cost,which is substantially equivalent to market value. The City of Renton's investments are categorized to give an indication of the risk assumed at year-end. Category 1 includes investments that are either insured, registered or held by the City or its agent in the City of Renton's name. Category 2 includes uninsured and unregistered investments which are held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments which are held by the counterparty's trust department or agent, but not in the City's name. At the end of the year,the City had no investments in category 3. Table 5: Classification of Investments as of December 31,1997 MARKET ITEM CATEGORY 1 CATEGORY 2 CARRYING AMOUNT VALUE �. S Government $28,996,348 $98,272 $29,094,620 $29,821,986 Bankers'Acceptance onvertible Bonds Dorporate Bonds ub-Total 28,996,348 98,272 29,094,620 29,821,986 ' Total Investments 1 $28,996,348 1 $98,272 $29,094,620 $29,821,986 NOTE 4-DEFERRED COMPENSATION The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. This plan is Iw administered by the Hartford Life Insurance Company and the ICMA Retirement Corporation. The plans are available to all City employees which permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement,death,or unforeseeable emergency. Compensation deferred under the plans and all income attributable to the plans are solely the property of the City of Renton. The City's rights to this property are subject only to the claims of the City's general creditors until paid to the employee or other beneficiary and are 22 City of Renton Notes to the Financial Statements not restricted to the benefit provisions under the plan. The deferred compensation plans investments are recorded at market value, along with the corresponding liabilities in the deferred compensation fund. At December 31, 1997, the market value of the plans assets , were$11,599,243. It is the opinion of the City's legal counsel that the City has no liability for losses under the plan but does have the duty of due care that ' would be required of an ordinary prudent investor. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. NOTE 5-RECEIVABLES AND PAYABLES , Table 6 details the specific receivables and payables at December 31, 1997. The City provides reserves for potentially uncollectible water,wastewater,storm,metro,solid waste utility,and airport charges. At December 31, 1997, these reserve balances were$116,129. , Table 6: Net Receivables and Pa ables SPECIAL DEBT CAPITAL INTERNAL TRUST& ITEM GENERAL REVENUE SERVICE PROJECTS ENTERPRISE SERVICE AGENCY TOTAL ' Receivables: Taxes $ 296,422 $ 0 $ 29,561 $ 0 $ 0 $ 0 $ 0 $ 325,983 Accounts 3,587,388 41,838 0 0 2,794,574 5,068 0 6,428,868 Notes 0 0 0 0 18,478 0 0 18,478 Special Assess-Current 0 0 6,878 0 0 0 0 6,878 Special Assess-Delinquent 0 0 8,638 0 0 0 0 8,638 Special Assess-Deferred 0 0 2,588,120 0 0 0 0 2,588,120 Interest-Special Assess 0 0 60,792 0 0 0 0 60,792 Interest on Investments 3,511 63,468 7,156 100,247 170,226 30,424 94,522 469,554 Total All Fund Types $3,887,321 $105,306 $2,701,145 $100,247 $2,983,278 $35,492 $94,522 $9,907,311 Payables: Matured Bonds Payable 0 0 0 0 0 0 0 0 Matured Interest Payable 0 0 323,999 0 160,320 26,300 0 510,619 Accrued Interest Payable 0 0 0 339,718 979 0 340,697 Accrued Wages Payable 0 0 0 0 23,100 5,353 0 28,453 Accrued Benefits Payable 0 0 0 0 3,500 810 0 4,310 Accrued Taxes Payable 309 6,006 0 530 92,232 6 01 99,083 Total All Fund Types $3091 $6,0061 $323,999 $530 $618,870 $33,448 $0 $983,162 Note Receivable: Table 6 details the current portion of the note receivable in the amount of $18,478 due from the Golf Course Concessionaire. The non-current portion of this receivable is$86,199. INTERFUND RECEIVABLES AND PAYABLES Table 7: Interfund Receivables and Payables ITEM DUE FROM DUE To General Fund $9,134 $353,867 Special Revenue Funds: Park Fund 15,299 1,467 Street Fund 52,602 0 Impact Mitgation 0 8,418 Total Special Revenue Funds $67,901 $ 9,885 Debt Service Funds: 1983 Unlimited GO Ref 60,267 0 General Government Misc.Debt 69,069 0 1989 Unlimited GO 34,314 0 Total Debt Service Funds $163,650 $ 0 Capital Project Funds: Municipal Facilities Construction 69,069 0 Capital Improvement Fund 0 47,498 Total Capital Project Funds $69,069 $47,498 23 I City of Renton Notes to the Financial Statements Table 7: Interfund Receivables and Payables continued ITEM DUE FROM DUE TO Enterprise Funds: Waterworks Utility Fund 62,286 70,069 Airport Fund 0 33,049 Solid Waste Utility Fund 0 0 Golf Course Fund 256,809 12,975 Total Enter rise Funds $319,095 $116,093 Internal Service Funds: Insurance 49,456 15,300 Total Internal Service Funds $49,456 $15,300 Total All Fund Types $678,305 $542,643 INTERFUND LOANSIADVANCES RECEIVABLE&PAYABLE The following is a reconciliation of the$131,680 interfund loans and advances of which$52,680 is current and$79,000 is long term: Table 8: Interfund Loans/Advances-Receivable and Payable E. INTERFUND LOANSIADVANCES FUND RECEIVABLE PAYABLE eneral Fund $ 79,000 $ 0 Special Revenue Funds: Community Dev Block Grant 0 75,000 Enter rise Funds: Golf Course 0 52,680 Agency&Trust Funds: Firemen's Pension 52,680 0 Advance Travel0 4,000 Total All Fund Grou s $131,680 $131,680 INTERGOVERNMENTAL RECEIVABLES At December 31, 1997, the receivables from other governmental units included federal, state and local grants receivable of$4,808,814, and a miscellaneous receivable amounting to$343,062,from Bryn Mawr-Lakeridge Water&Sewer District for their 25%share of a water joint facilities project. Table 9: Due From Other Governmental Units SOURCE AMOUNT rrants: Agriculture $ 19 215 Commerce(EDA) 0 Justice 33,345 US Department of Ecology 0 Federal Emergency Management Agency 0 A Department of Housing&Community Development 71,461 A Department of Natural Resources 0 A Department of Transportation 4,463,905 A Department of Trade and Econ Development 0 King County 220,888 Subtotal-All Grants 4,808,814 Other Governmental Receivables: Bryn Mawr-Lakerid a Water&Sewer District 343,062 Total Due All Grants $5,151,876 INTERGOVERNMENTAL PAYABLES A total of$1,883,161 was recorded as due to other governmental units at December 31, 1997. This included: 1) $3,449 for Renton Communities In Schools; 2)$1,478,544 is the portion of Municipal Court's outstanding receivables for bail due to the State; and 3) $401,168 to the Washington State Department of Community Development for current portion due on Public Works Trust Fund loans. NOTE 6-OPERATING AND RESIDUAL EQUITY TRANSFERS Interfund transfers are classified as either operating transfers or residual equity transfers. Operating transfers are accounted for as "other financing sources or uses" and are included in the operating statements. Residual equity transfers are direct additions or subtractions to fund balance/fund equity. Contributions to Proprietary Funds are recorded as contributed capital in those funds. r 6 24 City of Renton Notes to the Financial Statements Table 10: Residual Equity Transfers FUND TRANSFER IN TRANSFER OUT General $ 0 $335,500 Park 335,500 0 Special Assessment Debt 1,069 0 Special Assessment Guaranty 0 1,069 Airport 0 27,856 Equipment Rental 27,856 0 Total Transfers $364,425 $364,425 Table 11: Operating Transfers FUND TYPE TRANSFERS IN TRANSFERS OUT General Governmental.- General overnmental:General $ 0 $ 3,415,226 Parks 75,000 0 Arterial Street 0 320,000 Street 0 400,000 Community Development 0 8,704 Impact Mitigation 3,171 0 1%for Art 0 3,171 General Governmental Debt 0 200,000 Special Assessment Debt 0 81,657 Special Assessment Guaranty 0 923,000 City Hall Improvement 2,430,000 0 Municipal Facilities 3,855,704 2,505,000 Capital Improvements 320,000 0 Proprietary Funds: Waterworks Utility $ 81,657 $ 0 Golf 603,226 0 Equipment Rental 488,000 0 Totals $7,856,758 $7,856,758 NOTE 7-FIXED ASSETS General Fixed Assets are long lived assets of the City as a whole. When purchased, leased, or constructed, such assets are recorded as expenditures in the Governmental Funds and capitalized in the General Fixed Assets Account Group. All fixed assets are valued at historical cost, estimated historical cost, or fair market value at time of donation. Depreciation has not been provided on general fixed assets, nor has interest been capitalized. Infrastructure assets are considered public property and are not accounted for in the General Fixed Assets Account Group. At the end of 1997, eight projects comprised the Construction Work in Progress. Upon completion, the projects will be capitalized in the General Fixed Asset Account Group in their appropriate categories. Tables 12 and 13 describe the changes in the City's general fixed assets during 1997 and the Construction Work In Progress at the end of the year. Table 12: Changes in General Fixed Assets ASSET BEGINNING BALANCE I ADDmONs DELETIONS ENDING BALANCE Land $20,865,235 $ 1,046,997 $ 0 $21,912,232 Building 20,797,882 13,326,166 0 34,124,048 Non-Building Improvements 14,891,329 806,799 0 15,698,128 Equipment 8,012,274 1,138,748 402,568 8,748,454 Construction in Progress 6,572,720 10,014,377 1,290,566 15,296,531 Joint Venture 1,241,6331 257,3621 01 1,498,995 Total $72,381,0731 $26,590,4491 $1,693,1341 L97,278,388 25 City of Renton Notes to the Financial Statements Table 13: Construction Work In Progress ESTIMATED ESTIMATED PROJECT COST TO DATE REMAINING COSTS TOTAL COST Cedar River Trail $ 2,044,877 $1,070,333 $ 3,115,210 Cedar River Trail/NARCO Acquisition 3,241,286 262,721 3,504,007 Springbrook IAC 48,688 78,032 126,720 Boeing Trail 10,581 34,430 45,011 Lake Washington Bath House 1,621 145,732 147,353 Lake Washington Boat House 72,297 131,125 203,422 New City Hall 9,846,464 7,031,709 16,878,173 Co ier Program 30,717 49,000 79,717 Total $15,296,531 $8,803,082 $24,099,613 Fixed assets of Proprietary Funds are capitalized in their respective balance sheets. These assets are stated at cost, estimated cost when original cost is not available,or fair market value at the time received in the case of contributions. Depreciation expense is charged to operations of Proprietary Funds to allocate the cost of fixed assets over their estimated useful lives,using the straight-line method with useful lives of 3 to 75 years. The City's policy is to capitalize net interest on Proprietary Fund construction projects until completion of the project. The amount of capitalized interest equals the difference between the interest cost associated with the tax exempt borrowing used to finance the project and the interest earned from temporary investment of the debt proceeds. Capitalized interest is amortized on the straight-line basis over the estimated useful life of the asset. For 1997,interest costs incurred on construction projects in Proprietary Funds were not material. Table 14 provides a summary of Proprietary Fund property,plant, and equipment as of December 31, 1997. Table 14: Proprietary roperty,Plant&E ui ment WATERWORKS AIRPORT SOLID WASTE GOLF COURSE TOTAL EQUIPMENT OTALINTERNAL ASSET UTILITY FUND UTILITY FUND ENTERPRISE RENTAL INSURANCE SERVICE Land 3,546,544 784,080 $ $ 2,683,2 $ 7,013,82 $ $ $ 0 Buildings 6,178,926 403,838 C 3,985,82C 10,568,5 Equipment 4,036,696 70,215 390,39E 872,44 5,369,755 5,618,52E 5,99 5,624,521 Other Improvements 131,990,093 8,100,504 C 2,720,39 142,810,98 Construction Work in 6,634,333 420,902 Proqress 01 C 7,055,23 Total Assets 152,386,592 9,779,539 $ 390,395$ 10,261,859 $ 172,818,38 $ 5,618,521 $ 5,993$ 5,624,521 Less Accumulated Depreciation 30,877,579 5,962,415 279,337 1,069,599 38,188,93 2,730,12 3,596 2,733,72 Net Property,Plant& Equipment 111,509,013 P 3,817,124 $ 111,058,$ 9,192,26q$ 134,629,452$ 2,888,39M$ 2,3971$ 2,890,796 CONTRIBUTED CAPITAL RETIREMENT The Airport Fund has $5,770,854 of contributed capital that includes $5,631,690 of Federal, $53,775 of State, and $85,389 of private sources which is being retired on an annual basis. The unamortized balance as of December 31, 1997,was$1,512,049. The Airport is the only fund which amortizes its contributed capital at this time. The Waterworks Utility Fund has $86,222,127 of contributed capital. The Equipment Rental Fund has $1,054,934 of contributed capital, and the Golf Course Fund has $5,000 of contributed capital. These funds'contributed capital are not being retired. NOTE 8-PREPAID ITEMS The General Fund has recorded$8,000 of prepaid items at December 31, 1997. This amount represents prepaid postage charges to be expensed in 1998. The Insurance Fund has recorded $10,018 of prepaid items at December 31, 1997. This amount represents a $3,000 revolving fund established to pay claims by our insurance broker and$7,018 for prepaid medical benefits. NOTE 9-JOINT VENTURE The "Valley Communications Center" was established August 20, 1976, when an Interlocal Agreement was entered into by the four participating municipal corporations, including the cities of Renton, Kent, Auburn, and Tukwila. The agreement is sanctioned by the provisions and terms of the"Interlocal Cooperation Act"pursuant to RCW 39.34. The initial duration of the agreement was five years, 26 City of Renton Notes to the Financial Statements and thereafter is automatically extended for consecutive two-year periods, unless terminated by one or more of the participating cities. Any such termination must be in writing and served upon the other cities on or before July 1 in any one year, and such termination shall then become effective on the last day of such year. The purpose of the joint operation, hereafter referred to as Valley-Com, is to provide improved consolidated emergency communications ' (dispatch)services for police,fire, and medical aid, to the four participating cities and to the several subscribing agencies, which include King County Fire Districts #17, #20, #40, #43, #44, #46, #47; City of Pacific Police and Fire Departments, City of Algona Police Department, City of Des Moines Police Department, City of Newcastle Police Department, City of Federal Way Police Department, and Valley Medic Units. Separate agreements between Valley-Com and the subscribing agencies have been executed, which set forth conditions of services and rates charged. The allocation of prorated financial participation among the four participating cities is the percentage of dispatched calls attributed to , each jurisdiction compared to the total estimated dispatched calls, for the current twelve month period ending December 31. The percentages are applied to the current approved budget, less revenue from all other sources. Distribution of current year net income is based on the same percentages. The 1997 cost distribution for the four participating cities was as follows: Table 15: Joint Venture Cost Distribution CITY DISPATCHABLE CALLS I %OF TOTAL 11997 ASSESSMENTS Renton 57,457 24.91% $ 850,885 Kent 76,300 33.07% 1,129,617 Auburn 53,450 23.18% 791,791 Tukwila 43,450 18.84% 643,544 Total 230,657 100.00% $3,415,837 Valley-Com is governed by an Administration Board, composed of the Mayors or designated representatives from the four participating cities of Renton, Kent, Auburn, and Tukwila. The Administration Board is responsible for the following functions: 1) Budget review and ' recommendations to the legislative bodies of the participating cities, and budget adoption after each legislative body has approved the required financial participation for the ensuing year; 2) Approve appointment and/or discharge of the Director; 3) Approve personnel policy and make final decisions on all major policy changes;and,4)Review and approves all contracts. In addition, an Operations Board provides direction, and consists of two members of each participating city's Public Safety Departments, including the heads of such departments or their designees. The Operations Board performs the following functions: 1) Oversee the operation of Valley-Com, and advise and make recommendations to the Administration Board; 2) Make recommendations on Director selection; 3)Present proposed policies and budgets to the Administration Board;and,4)Approve disbursement of funds by the Director. The Director presents a proposed budget to the Operating Board on or before August 15 of each year. Said budget is then presented to the Administrative Board by September 1 of each year. The Administrative Board can make changes to the proposed Valley-Com budget as it finds necessary, but final approval falls to the legislative body of each participating city, in accordance with the provisions of the Interlocal Agreement. Tables 16 and 17 show the condensed financial position as of December 31, 1997, and the results of operation and changes in retained earnings for the year ended 1997. Audited 1997 financial statements are available from Valley-Com. Table 16: Balance Sheet ' ITEM AMOUNT Assets: Current Assets $ 5,897,85 ' Property,Plant and Equipment 10,820,88 Total Assets $16,718,741 Liabilities and Fund Equity: ' Current Liabilities 626,19 Long-Term Liabilities Total Liabilities $ 626,19 Retained Earnings 5,187,83 Contributed Capital 10,904,70 Total Fund Equity 16,092,5471 4 Total Liabilities and Fund Equity $16,718,741 27 ' City of Renton Notes to the Financial Statements Table 17: Statement of Revenues, Expenses and Chan es in Retained Earnings ITEM AMOUNT Operating Revenues: Intergovernmental Charges $ 6,025,067 Miscellaneous 10,390 Transfers In 0 Total Operating Revenues 6,035,457 Operating Expenses: 5,126,008 Net Operating Income 909,449 Non-Operating Revenues(Expenses): Interest and Misc.Revenues 167,050 Interest Expense 0 Total Non-Operating Revenues(Expenses) 167,050 Net Income(Loss) 1,076,499 Retained Earnings at Beginning of Year 4,111,340 Retained Earnings at End of Year 5,187,839 Contributed Capital 10,217,745 800-MHz Contributed Capital 686,963 Total Fund E ui at End of Year 1 $16,092,547 The share of equity belonging to the four participating cities is shown in Table 18 below. Liabilities are the responsibility of the four participating cities in direct proportion to their equity position. Table 18: Joint Venture Equity ITEM RENTON KENT AUBURN TUKwiLA TOTAL Equity January 1, 1997 $1,241,633 $ 1,334,956 $ 1,010,302 $791,952 $4,378,843 Current Year Increase 257,362 341,661 239,518 194,622 1,033,163 Equity December 31, 1997 $1,498,995 $1,676,617 $1,249,820 $986,574 $5,412,006 Percent of Equity 27.70% 30.98% 23.09% 18.23% 100.00% Percent of 1997 Distribution 24.91% 33.07% 23.18% 18.84% 100.00% An agreement between the City of Kent and Valley-Com was established February 18, 1993, to provide for Valley-Com's purchase of an 800-megahertz radio system and mobile data terminal system developed by the City of Kent. The agreement was paid off in 1996. The 800-Megahertz system is to be incorporated into the County 800-Mhz system which is currently under development. In August 1993, Valley-Com entered into an interlocal cooperation agreement, pursuant to RCW 39.34, with the subregions of King County, Seattle, the Eastside Public Safety Communications Agency and the Port of Seattle. This agreement governs the development, acquisition and installation of the 800-megahertz emergency radio communications system funded by a $57 million King County levy approved in November 1992. This agreement provides that, upon voluntary termination of any subregion's participation in the system, it surrenders its radio frequencies, relinquishes its equipment and transfers any unexpended levy proceeds and associated equipment replacement reserves to another subregion or consortium of subregions. In accordance with this agreement, the participating cities of Valley-Com have no equity interest in Valley-Corn's 800-megahertz contributed capital(King County levy distribution and interest earned)of$10,680,541 as of December 31, 1997. Fill NOTE 10-PENSION PLAN&OTHER POST EMPLOYMENT BENEFITS k- All of the City's full-time and qualifying part-time employees participate in one of the following three defined benefit retirement systems: 1)Public Employees'Retirement System(PERS); 2)Law Enforcement Officers and Fire Fighters Retirement System (LEOFF)which are both established by State statute and administered by the State's Department of Retirement Systems; and 3) The Firemen's Pension System established and administered by the City according to State statute. The City's total payroll for all employees was$29,192,951 for the year ended December 31, 1997. The pension benefit obligation presented by each system are standard disclosure measures of the present value of pension benefits, adjusted for the effects of credited projected salary increases and step-rate benefits(LEOFF only) estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of projected benefits, is intended to help users assess the system's funding status on a going concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among systems and employers. The standardized disclosure method is independent of the actuarial funding method used to determine contributions to the retirement systems. ' 28 City of Renton Notes to the Financial Statements ' Table 19: PERS and LEOFF Information By Plan PERS PLAN I PERS PLAN II LEOFF PLAN I LEOFF PLAN 11 ' (MEMBERSHIP PRIOR TO (MEMBERSHIP ON OR (MEMBERSHIP PRIOR TO (MEMBERSHIP ON OR ITEM 1011177 AFTER 1011177) 1011/77 AFTER 1011177 Vesting Requirement: Service year required for vesting of benefits 5/25/30 5/20' 5 5/20 ' Retirinq a e for vesting of benefits 60/55/an age 65/55" 50 58/50 Employee Contribution: Actual rate @ 12/31/94 6.00% 5.08% 6.00% 8.43% ' Actual Amount $173,642 $624,668 $155,879 $655,938 Required rate @ 12/31/94 6.00% 5.08% 6.00% 8.48% Required Amount $173,642 $624,668 $155,879 $660,872 Employer Contribution: Actual rate @ 12/31/94 7.42% 7.42% 6.00% 5.06% Actual Amount $220,525 $940,865 $161,075 $409,407 ' Required rate @ 12/31/94 7.32% 7.32% 6.00% 5.09% Required Amount $211,843 $900,163 $155,879 $396,679 ' Receive reduced benefits. PUBLIC EMPLOYEE'S RETIREMENT SYSTEM ' PERS is a contributory multi-employer cost-sharing retirement system. All of the City's non-uniformed employees are covered by this system. Membership in the system includes elected officials; state and local governmental employees; and other public employees. Approximately 50%of PERS members are state employees. The system provides retirement benefits at 2.0%of the final average salary per year of service. The existing Cost of Living Allowance (COLA) benefits based on the loss of purchasing power in PERS I was repealed and replaced with a COLA based on years of service. The COLA will increase the employer contribution rate by.16 percent. LAW ENFORCEMENT OFFICERS&FIRE FIGHTERS RETIREMENT SYSTEM The LEOFF system is also a contributory multi-employer cost-sharing system for all uniformed law enforcement officers and fire fighters. , The retirement benefits are calculated as a percentage of final average salary based on years of service. Contributions to both systems by employee and employer are based on actuarially determined requirements and established by State statute. The City's contribution in 1997 represents its full liability under both systems except certain medical and disability premiums under the LEOFF Plan I, which are considered immaterial. During the 1996 legislative session, a benefit of$150,000 was provided for duty-related deaths for members of LEOFF I and II. The death benefit will increase LEOFF II employer contribution rates by.01%,and LEOFF II employee contribution rates by.02%. Table 20: PERS and LEOFF Information By System ITEM DOLLARS IN MILLIONS PERS LEOFF City Participating Payroll $16.393 $11.119 Plan I City Contribution Rate 7.50% 6.18% Plan II City Contribution Rate 7.50% 5.27% City Plan Contribution: 1997 $1.230 $.608 1996 $1.140 $.569 1995 $1.012 $.550 Plan I Employee Contribution Rate 6.00% 6.00% Plan II Employee Contribution Rate 4.65% 8.48% All required contributions to both systems were made by the city and the employees. The State system does not make separate measurements of assets and pension benefit obligation for individual employers.The pension benefit obligation and net assets available for benefits for the systems as a whole were determined by the Office of the State Actuary as of December 31, 1997. Historical trend information showing the systems' progress in accumulating sufficient assets to pay benefits when due are presented in the State of Washington Department of Retirement Systems'June 30, 1997 Comprehensive Annual Financial Report. FIREMEN'S PENSION Plan Description The City contributes to the Firemen's Pension Plan (the System), a closed, single-employer, defined benefit retirement plan established and administered by the City in accordance with the Renton Municipal Code and State statutes. This system was established for fire fighters employed prior to March 1, 1970, when the LEOFF retirement system was established. The System is considered part of the Ild City's reporting entity and is included in the City's financial statements as a pension trust fund. At December 31, 1997, there were 37 members in the System, including 33 retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits ' 29 City of Renton Notes to the Financial Statements but not yet receiving them;4 vested active members and no nonvested active members. The City's payroll for employees covered by the System for the year ended December 31, 1997 was$294,403. 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. The plan also provides death and disability benefits. The benefit provisions and all other requirements are established by State statute. Significant Accounting Policies and Plan Assets Please refer to Note 1 to the financial statements with regards to the significant accounting policies. Investments in the System are valued at cost, and completed transaction method is used in gain or loss recognition on exchanges of securities. The investment portfolio of mutual funds was liquidated November 9, 1997 yielding a gain of $2,403,732. U.S. Government Treasury Strips were purchased in November 1997. The current portfolio valued at cost of $5,498,704 with cash of $589,648 has an accreted value of $12,719,000. The Pension Board's decision to convert the mutual funds provide a positive annual cash flow each year through the actuarial life of the fund. Based on the actuarial data, the fund will have an excess balance of$8,710,777 in 2054, the last plan year. It is significant to know that the youngest of the plan participants will be 111 years of age in that year. There were no material changes in any accounting policies in 1997. Funding Status and Progress The contribution requirement and pension obligation was computed as part of an actuarial valuation performed as of January 1, 1997. Significant actuarial assumptions used in the valuation of both include: 1) 7% investment return, compounded annually,: 2) 5% salary increase annually; 3)0%growth in fire insurance premium;4)6% annual increase in property tax; and 5)4%increase in consumer price index. There were no material changes to the benefit provisions, actuarial funding method or other significant factors that affect contributions required. Unfunded Pension Benefit Obligation The standardized measure of the unfunded pension benefit obligation as of December 31, 1997, is as follows: Table 21: Unfunded Pension Benefit Obli ation hEM AmouNT Retirees and beneficiaries currently receiving benefits $ 6,642,979 Total Pension Benefit Obligation $ 6,642,979 Net assets available for benefits,at cost (Market Value$6,235,554 as of 11/30197) 6,235,554 Unfunded Pension Obligation $ 407,425 Actuarial Funding Method&Amortization of Unfunded Pension Obligation The System's funding policy requires the employer to make contributions for the actuarially determined amount using the Aggregate Cost funding method. This method does not explicitly calculate the cost of benefits accruing during the year for active employees, i.e., normal cost. On an estimated basis, approximately$40,000 of the 1997 cost is for active employees with the remaining amount paid toward reducing the unfunded liability. The unfunded obligation is amortized over the period ending December 31, 2008, assuming cost w increases 8% annually. Employees are not required to make contributions. Pension benefit obligations were actuarially determined in 1982, 1986, 1988, 1990, 1992, 1994 and 1997. Amounts included for other periods were estimated based on the most recent actuarial result. For 1997, a 3.2%increase over 1996 was estimated in the total pension benefit obligation. The contributions to the System for 1997 of$161,000 were made in accordance with actuarially determined requirements and represent 56.69%of the covered payroll. Other incomes to the system include$69,305 from fire insurance premiums and$2,530,975 of investment income. Trend data presented below is designed to provide detailed information on the System's accumulation of sufficient assets to pay �— benefits when due. 30 City of Renton Notes to the Financial Statements t Table 22: Fire Pension Ten-Year Funding Progress Data ' UNFUNDED PENSION EMPLOYER NET ASSETS PENSION UNFUNDED ANNUAL OBLIGATION AS A% CONTRIBUTION AS A AVAILABLE FOR BENEFIT PERCENTAGE PENSION COVERED OF COVERED EMPLOYER %OF COVERED FISCALYEAR BENEFITS OBLIGATION FUNDED OBLIGATION PAYROLL PAYROLL CONTRIBUTION PAYROLL ' 1997 $6,235,554 $6,642,979 93.87% $ 407,425 $294,403 138.39% $161,000 54.69% 1996 3,779,557 8,083,000 46.75% 4,303,443 272,580 1578.78% 297,000 108.95% 1995 3,334,915 7,848,000 42.50% 4,513,085 270,734 1666.99% 286,000 105.63% 1994 2,983,886 7,686,000 38.82% 4,702,114 335,676 1400.79% 257,000 76.56% 1993 2,478,168 7,076,000 35.02% 4,597,832 447,394 1027.69% 246,000 54.98% 1992 2,430,896 6,998,000 34.74% 4,567,104 428,350 1066.21% 228,000 53.23% 1991 2,325,477 6,656,197 34.94% 4,330,720 343,072 1262.34% 206,000 60.05% ' 1990 2,075,326 6,984,000 29.72% 4,908,674 367,652 1335.14% 191,000 51.95% 1989 1,954,839 6,164,532 31.71% 4,209,693 456,618 921.93% 175,000 38.33% 1988 1,816,787 6,288,000 28.89% 4,471,213 467,220 956.98% 162,000 34.67% Table 23: Fire Pension Ten-Year Revenues and Expenses REVENUE BY SOURCE EXPENSES BY TYPE ' EMPLOYER FIRE INSURANCE INVESTMENT FISCAL YEAR CONTRIBUTIONS PREMIUM INCOME TOTAL REVENUE BENEFITS ADMINISTRATION TOTAL EXPENSES 1997 $161,000 $69,305 $2,530,975 $2,761,280 $294,403 $ 10,880 $ 305,283 ' 1996 297,000 81,721 364,054 742,775 293,934 4,199 298,133 1995 286,000 69,471 303,914 659,385 300,591 7,765 308,356 1994 257,000 78,893 281,189 617,082 295,605 3,157 298,762 1993 246,000 51,032 228,286 525,318 283,383 7,265 290,648 , 1992 228,000 44,536 149,719 422,255 314,066 2,770 316,836 1991 206,000 52,895 185,264 444,159 277,497 8,609 286,106 1990 191,000 48,865 227,438 467,303 252,197 2,521 254,718 1989 175,000 49,842 263,152 487,994 251,468 5,722 257,190 ' 1988 162,000 50,378 165,071 377,449 249,904 5,052 254,956 OTHER POST EMPLOYMENT BENEFITS In addition to the pension benefits described in Note 10, the City provides post employment benefits in accordance with State statute to all LEOFF I (law enforcement officers and fire fighters hired prior to 10/1/77)and Fire Pension(fire fighters hired prior to 311/70) retirees. Currently there are 97 LEOFF I retirees who receive necessary medical and hospitalization coverage and 5 retirees who are covered solely by the Fire Pension Plan and receive medical coverage limited to treatment of service-related disabilities only. Expenditures for post employment health care benefits are recognized as retirees report claims. The City does not have a funding policy at this time and no assets are designated for this purpose. During the year,expenditures of$283,900 were recognized for post employment health care. State statute provides that the City's responsibility for medical payments of LEOFF I retirees is secondary to any other coverage retirees receive or are eligible to receive. The City recognizes a potential savings exists when retirees utilize Medicare as primary coverage and the City for secondary coverage and ineligible expenses. Therefore,upon reaching age 65,the City requires the retirees to apply for and utilize Medicare Part B coverage. The City reimburses these Medicare premiums at an average cost of approximately$48 per month for 28 LEOFF 1 retirees and 5 Fire Pension retirees. NOTE 11 -CONSTRUCTION COMMITMENTS At December 31, 1997,the City had significant contractual construction commitments.These are listed below: Table 24: Construction Commitments PROJECT TITLE COMMITMENT FUNDING SOURCE Waterworks Improvements $6,634,333 General Public Works Trust Fund Loans/Grants Airport 420,902 General/Grants Parks Improvements 1,459,652 General/Grants 31 i City of Renton Notes to the Financial Statements NOTE 12-LONG-TERM DEBT AND CAPITAL LEASES The City of Renton's long-term debt consists of General Obligation Debt, repaid mainly from general governmental revenue sources; Special Assessment Debt, repaid from special assessment payments from participants; and Proprietary Debt, repaid from proprietary revenues. These debts are accounted for in the following areas: 1) The outstanding general obligation debt, except for the portion applicable to proprietary operations, is reported in the General Long-Term Debt Account Group; 2)The repayment,or debt service of the same, is recorded in the Debt Service Funds; and 3) The proprietary debt includes the portion of general obligation debt applicable to proprietary operations. Both the liability and repayment of the same are reported in individual Proprietary Funds. The City has an A 1 bond rating from Moody's Investors Service for both its General Obligation Bonds and Revenue Bonds. Table 25 summarizes long-term debt transactions of the City for the year ended December 31, 1997. A detail of all outstanding debt of the City is listed in Table 27 on the following page. Table 25: Long-Term Debt Additions and Retirements Summary PAYABLE PAYABLE ITEM 111197 ADDED RETIRED 12/31197 General: General Obligation Bonds $13,344,877 $16,141,643 $2,940,415 $26,546,105 Installment Contracts 89,608 0 76,247 13,361 Arbitrage 0 0 0 0 Special Assessment 2,456,000 0 621,000 1,835,000 Employee Leave Benefits 3,236,410 721,062 0 3,957,472 Total General $19,126,895 $16,862,705 $3,637,662 $32,351,938 Proprietary: Revenue Bonds $31,750,000 $ 0 $1,810,000 $29,940,000 General Obligation Bonds 3,948,460 1,239,928 1,626,585 3,561,803 Installment Contracts 314,952 0 56,207 258,745 Capital Leases 91,274 63,771 31,098 123,947 Arbitrage 0 0 0 0 Employee Leave Benefits 354,617 59,964 0 414,581 Public Works Trust Fund Loans 5,603,396 2,366,140 277,989 7,691,547 Total Proprietary $42,062,699 $3,729,803 $3,801,879 $41,990,623 Total All Funds General Obligation Bonds $17,293,337 $17,381,571 $4,567,000 $30,107,908 Revenue Bonds 31,750,000 0 1,810,000 29,940,000 Installment Contracts 404,560 0 132,454 272,106 Capital Leases 91,274 63,771 31,098 123,947 Arbitrage 0 0 0 0 Special Assessment 2,456,000 0 621,000 1,835,000 Employee Leave Benefits 3,591,027 781,026 0 4,372,053 Public Works Trust Fund Loan 5,603,396 2,366,140 1 277,989 1 7,691,547 Total All Funds $61,189,594 $20,592,508 $7,439,541 $74,342,561 DEEP DISCOUNT DEBT The 1996 Limited General Obligation Bond issue included capital appreciation bonds that are issued at a deep discount. The deep- discount debt will mature in the years 2001, 2005,and 2006 with an accreted value of$21,000, $25,000 and$194,000 respectively. The deep-discount debt is reported in the General Long Term Debt Account Group in the amount of $143,337, net of the remaining unamortized discount. The 1997 Limited General Obligation Bond issue included capital appreciation bonds that are issued at a deep discount. The deep- discount debt will mature in the years 2006, 2007, and 2008 and 2009 with an accreted value of$335,000,$1,245,000, $1,250,000 and �• 1,000,000, respectively. The deep-discount debt is reported in the General Long Term Debt Account Group in the amount of $2,037,743, net of the remaining unamortized discount. DEBT PRO RATED BETWEEN FUNDS The 1986 Limited General Obligation Bond issue and the 1993 Limited General Obligation Refunding Bond Issue included funds to provide permanent financing for the purchase of a Golf Course which was acquired in 1985. The remaining obligation for this purchase is$1,742,700 and is reported on the balance sheet of the Enterprise Funds. Likewise, a pro rata share of the 1989 and 1992 general obligation bonds and the entire 1994 general obligation bond issue were for the benefit of the Equipment Rental Fund and are therefore reported on the balance sheet of the Internal Service Fund. The 1993 general obligation bond (flexline) bond issue was for the IP acquisition of yard waste carts and is reported in the Solid Waste Utility Fund. The entire debt in each instance is secured by the full faith and credit of the general government. Table 27 provides a reconciliation of debt distribution between the Proprietary Funds and the General Long Term Debt Account Group. 1 32 City of Renton Notes to the Financial Statements ' Table 26 Outstanding Debt as of December 31,1997 INTEREST ISSUE MATURITY TOTAL AMT OUTSTANDING , ITEM RATES DATE I DATE ISSUED 111197 ISSUED REDEEMED 12131197 General Obligation Bonds: Limited 1978 Senior Citizens Center 5.38% 02101178 02101198 900,000 145,000 0 145,000 0 1989 G 0 Bonds 6.10%-7.00% 02/01/89 02/01/02 1,600,000 915,000 0 915,000 0 1989 G 0 Refunding Bonds 6.75%-7.00% 06101/89 05101102 2,085,000 1,460,000 0 200,000 1,260,000 1992 G 0 Bonds 2.60%-5.00% 10/01/92 12101102 1,365,000 900,000 0 900,000 0 1993 G 0 Bond(FlexLine) 2.80%-4.95% 03101/93 12/01199 350,000 165,000 0 165,000 0 ' 1993 G 0 Refunding Bonds 3.00%4.80% 08/01/93 06101102 4,910,000 4,625,000 0 700,000 3,925,000 1994 G 0 Bonds 4.60%-6.30% 12/01/94 12/31/04 980,000 735,000 0 670,000 65,000 1996 G 0 Bonds 4.25%-5.40% 10115/96 10115/06 553,337 553,337 0 7,000 546,337 1997 G 0 Refunding Bonds 5.25%-5.55% 05101/97 12/01106 2,683,827 0 2,683,827 0 2,683,827 1997 G 0 Bonds 5.55%-5.75% 05/01/97 12/01117 14,697,744 0 14,697,744 0 14,697,744 ' Subtotal Limited GO 30,124,908 9,498,337 17,381,571 3,702,000 23,177,908 Unlimited 1989 G 0 Bonds-Sr.Housing 6.40%-7.50% 02/01/89 02/01/09 5,500,000 695,000 0 215,000 480,000 1993 G 0 Refunding Bonds-Coulon Pk(Taxable) 4.00%-6.10% 09101/93 05101/02 4,660,000 2,940,000 0 605,000 2,335,000 ' 1993 G 0 Refunding Bonds-Sr.Housing 2.70%-5.20% 09101/93 02/01/09 4,270,000 4,160,000 0 45,000 4,115,000 Subtotal Limited GO 14,430,000 7,795,000 0 865,000 6,930,000 Total General Obligation Bonds 44,554,908 17,293,337 17,381,571 4,567,000 30,107,908 Installment Contracts: ' King County(Land) 10.00% 08/25/88 10/01198 90,300 25,506 0 12,145 13,361 Sheridan Property 10.00% 05/05195 10/02/97 193,000 64,102 0 64,102 0 Total Installment Contracts 283,300 89,608 0 76,247 13,361 Total General Obligation Debt 44,838,208 17,382,945 17,381,571 4,643,247 30,121,269 ' Revenue Bonds: 1977 Water/Sewer Refunding 6.01% 12/01177 07/01/99 3,045,000 865,000 0 290,000 575,000 1987 Water/Sewer 7.55% 06/01187 06101/06 3,375,000 165,000 0 165,000 0 1988 Water/Sewer 7.56% 06/01188 06/01/08 3,460,000 290,000 0 140,000 150,000 ' 1989 Water/Sewer 6.85%-7.50% 05/01189 05101/09 1,715,000 210,000 0 65,000 145,000 1989 Water/Sewer Refunding 6.00%-7.10% 09/01189 04101/05 2,150,000 350,000 0 170,000 180,000 1990 Water/Sewer 5.90%7.37% 11/01/90 10101/10 4,100,000 660,000 0 150,000 510,000 1992 Water/Sewer 3.50%-6.50% 06/01/92 12101/12 4,000,000 3,525,000 0 135,000 3,390,000 1992 WaterlSewer Refunding 3.50%-6.35% 06/01/92 12/01/06 4,635,000 4,090,000 0 260,000 3,830,000 , 1993 Water/Sewer 3.000/-5.375% 08101/93 04101/13 5,285,000 4,770,000 0 185,000 4,585,000 1993 Water/Sewer Refunding 3.00%-5.375% 01/08/93 04/01/10 8,860,000 8,395,000 0 100,000 8,295,000 1994 Golf System 4.50%-7.00% 07/01/94 12/01115 5,000,000 4,860,000 0 150,000 4,710,000 1994 Water/Sewer 5.45%-6.55% 11/01/94 11/01/13 3,570,000 3,570,000 0 0 3,570,000 - Total Revenue Bonds 49,195,000 31,750,000 0 1,810,000 29,940,000 Public Works Trust Fund Loans: Northwest 7th Sewer Repair 5.00% 12/31/91 07/01/01 84,779 47,099 0 9,420 37,679 Sierra Heights Sewer Improvements 3.00% 10120192 07/01/12 888,462 410,279 0 25,642 384,637 Central Renton Sewer Replacement 1.00% 06114/93 07/01/15 1,631,800 1,646,904 -55,650 87,483 1,503,771 East Renton Interceptor 2.00% 06/14/93 07/01/13 2,542,704 2,287,690 0 134,570 2,153,120 Dayton Avenue NE 2.00% 05/24/94 07/01114 96,958 91,855 0 5,103 86,752 Sanitary Sewer Grouting 2.00% 05/19/94 07101/04 90,000 80,000 0 10,000 70,000 NE 27th/Aberdeen Drainage Improvements 1.00% 06127/95 07101115 109,650 109,650 0 5,771 103,879 East Kennydale Interceptor 2.00% 06/26/96 07/01/16 314,061 314,061 0 0 314,061 Honeycreek Interceptor 2.00% 06/26/96 07/01116 1,913,858 370,008 1,543,850 0 1,913,858 Rolling Hills Reservoir 1.00% 03/26196 07/01101 154,400 115,800 38,600 0 154,400 Corrosion Control Treatment Facilities 1.00% 03/26/96 07/01117 969,390 130,050 839,340 0 969,390 Total Public Works Trust Fund Loans 8,796,062 5,603,396 2,366,140 277,989 7,691,547 Installment Contracts(Proprietary Funds): Metro Cedar River Trunk Project) 5.00-5.25% 12/01/96 12/01/01 314,952 314,952 0 56,207 258,745 Total Installment Contracts 314,952 314,952 0 56,207 258,745 Capital Leases: Golf Course Carts 6.09% 11/13/95 10/13/99 89,175 65,034 0 21,687 43,347 Golf Course Carts 5.62% 7119196 06/19/00 29,725 26,240 0 6,415 19,825 John Deere Equipment 9.50% 10/01/97 09/01/02 21,298 0 21,298 1,003 20,295 John Deere Equipment 10.39% 10/01197 09/01/02 1 43,473 0 42,4731 1,993 40,480 Total Capital Leases 183,671 91,274 63,771 31,098 123,947 LID Bonds and Notes: 313 Street 6.25% 04/01187 04/01199 12,239 1,000 0 1,000 0 314 Street/Utilities 9.00%-11.125% 09/01/89 09/01/01 6,789,084 335,000 0 235,000 100,000 332 Street/Utilities 6.000/7.75% 10/15188 10/15/05 3,450,183 1,055,000 0 205,000 850,000 329 Street/Utilities 3.000/6-5.50% 04/01/93 04/01/03 1,654,063 1,065,000 0 180,000 885,000 Total LID Bonds and Notes 11,905,569 2,456,000 0 621,000 1,835,000 Arbitrage 0 0 0 0 , Employee Leave Benefits 3,591,027 781,026 0 4,372,053 Total Outstanding Debt 115,233,462 61,189,594 20,592,508 7,439,541 74,342,561 33 ' City of Renton Notes to the Financial Statements Table 27: Pro Rata Debt SOLID GOLF GENERAL WATERWORKS WASTE COURSE EQUIPMENT LONG-TERM ISSUE UTILITY UTILITY FUND RENTAL DEBT TOTAL 1993 General Obligation Refunding Bonds: Payable-Long Term $282,040 $ 0 $1,423,020 $ 137,815 $ 1,362,125 $ 3,205,000 Payable—Current 63,360 0 319,680 30,960 306,000 720,000 Total 1993 General Obligation Ref Bonds 345,400 0 1,742,700 168,775 1,668,125 3,925,000 1994 General Obligation Bonds: Payable-Long Term 0 0 0 65,000 0 65,000 Payable-Current 0 0 0 0 0 0 Total 1994 General Obligation Bonds 0 0 0 65,000 0 65,000 1997 General Obligation Refunding Bonds: Payable—Long Term 0 171,765 0 1,068,163 1,443,899 2,683,827 Payable—Current 0 0 0 0 0 0 Total 1997 General Obligation Bonds 0 1 171,765 0 1,068,163 1,443,899 1 2,683,827 Other General Obligation Bonds 0 00 0 23,434,081 23,434,081 Installment Contracts 0 0 0 0 13,361 13,361 Total General Obli ation Debt $345,400 $171,765 $1,742,700 $1,301,938 $26,559,466 $30,121,269 SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMMITMENT As of December 31, 1997, a total of$1,835,000 of long-term special assessment debt was outstanding. This debt was issued to fund capital improvements to enhance the utility, accessibility and aesthetic value of property within the City of Renton. The source of repayment of this debt is in the form of assessments against benefiting property owners. In the event of default by one of these property owners the City is obligated for repayment, and has established a guaranty fund for that purpose. As of December 31, 1997, special assessments receivables totaled $2,603,636 which includes $8,638 of delinquent assessments. In the guaranty fund, $996,769 represents 54.3%of 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% without a vote of the people provided the indebtedness with a vote is 1%or less; 2.5%with a vote of the people; 5.0%with a vote of the people,provided the indebtedness in excess of 2.5%is for utilities;and 7.5%with a vote of the people, provided the indebtedness in excess of 5.0%is for open space development and parks facilities. At December 31, 1997,the debt limits for the City were as follows: Table 28: Debt Limit Capacities WITH A VOTE OF THE PEOPLE ITEM WITHOUT A VOTE F 2.5% 5.0% 7.5% Legal Limit $54,384,026 $90,640,044 $181,280,088 $271,920,132 OutstandingNet Indebtedness 22,590,990 26,833,453 1,810,375 28,643,828 Capacity Available $31,793,036 $63,806,591 $179,469,713 $243,276,304 REFUNDED DEBT As of December 31, 1997, the City's refunded debt includes eleven outstanding general obligation and revenue bond issues. The proceeds of the new refunding bond issues have been placed in an irrevocable trust to provide for all future debt service payments on the old bonds. As a result,the refunded bonds are considered to be defeased and the liability has been removed from the City's financial r" statements. Schedules of assets, liabilities, and equity as of December 31, 1997, and changes to refunded bonds payable are provided in the following tables. Table 29: Refunded Bonds FIRST TRUST CHASE ITEM WASHINGTON MANHATTAN BANK TOTAL Assets: Cash with Trustee $ 131 $ 5,753 $ 5,884 Investments with Trustee 7,452,804 7,218,996 14,671,800 Estimated Interest Receivable 1,062,158 572,185 1,634,343 Total Assets $8,515,093 $ 7,796,934 $16,312,027 Liabilities: Refunded Bonds Payable 8,260,000 7,560,000 15,820,000 ' Equity: Earnings with Trustee 255,093 236,934 1 492,027 Total Liabilities and Equity $8,515,093 $ 7,796,934 $16,312,027 ' 34 City of Renton Notes to the Financial Statements , Table 30: Changes to Refunded Bonds Payable BALANCE BALANCE , ITEM 12131196 INCREASE DECREASE 12/31197 Refunded Bonds Payable GO 5,895,000 2,595,000 310,000 8,180,000 Refunded Bonds Payable Revenue 10,730,000 0 3,090,000 7,640,000 Total $16,625,000 $2,595,000 $3,400,000 $15,820,000 DEBT SERVICE TO MATURITY Following is a schedule showing the debt service requirements to maturity for the City's long-term debt. Formulas have been , implemented to compute the principal and interest obligations for the special assessment debt as it is redeemed in direct proportion with special assessment collections from district participants. A formula has also been used to compute the interest requirements on the general obligation debt that carries a variable interest rate tied directly to the prime rate. Deep-discount debt is reported at face value at maturity. Table 31: Debt Service Requirement to Maturi Dollars in Thousands TOTAL LONG TERM REVENUE PW TRUST CAPITAL LEASES SPECIAL TOTAL LONG GO DEBT BONDS FUND LOANS ASSESSMENT TERM DEBT ' YEAR PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST 1998 1,900 1,344 1,92C 1,676 375 83 41 9 185 46 4,421 3,158 1999 1,997 1,239 2,03 1,566 518 101 40 6 140 45 4,730 2,957 2000 2,097 1,129 1,75 1,4621 518 94 16 3 325 100 4,706 2,788 2001 1,566 1,039 1,86C 1,361 518 88 14 2 395 80 4,353 2,570 2002 1,688 951 1,94 1,262 435 80 12 1 39 54 4,475 2,348 2003 1,255 1,242 2,07C 1,156 435 74 0 0 39 2 4,155 2,499 ' 2004 1,309 1,186 2,19 1,040 435 68 0 0 3,934 2,294 2005 1,200 1,301 2,30 916 425 62 0 0 3,925 2,279 2006 1,169 1,335 2,19C 790 425 56 0 0 C 3,784 2,181 2007 1,149 1,348 1,79 676 425 50 0 0 3,369 2,074 ' 2008 1,136 1,368 1,90 570 425 44 0 0 3,461 1,982 2009 1,245 1,258 1,66E 467 425 39 0 0 C 3,335 1,764 2010 1,265 721 1,605l 371 425 33 0 0 3,295 1,125 2011 1,340 639 1,33N 283 425 27 0 0 3,100 949 2012 1,415 563 1,41 197 425 21 0 0 3,255 781 2013 1,495 482 1,15 118 398 16 0 0 3,043 616 2014 1,580 396 39 57 228 10 0 0 2,203 463 2015 1,675 306 42 29 223 7 0 0 2,318 342 2016 1,770 209 0 165 3 0 0 1,935 212 2017 1,870 108 0 44 0 0 0 1,914 108 Totals $130,121 $18,164 529,9 $13,997 $7,692 $956 $123 $21 $1,83 $35 $69,711 $33,490 AMOUNT AVAILABLE FOR DEBT SERVICE Fund balances that have been reserved for debt repayment are$2,919,630 in the debt service funds. CAPITAL LEASES The City entered into a lease agreement in 1995,1996 and 1997 as lessee for financing the acquisition of golf carts and lawn equipment for its Municipal Golf Course. The leases qualify as capital leases for accounting purposes. Therefore, at inception of the leases, the equipment was recorded as assets with a corresponding long-term liability equal to the present value of the future lease payments which totaled$182,671. The fund records lease payments as reductions of the long-term liability and as interest expense over the life of the lease. As of December 31, 1997, the current and long-term portions of capital leases payable were$41,492 and $82,455, respectively. Table 32 provides the future minimum lease obligations and the net present value of these minimum lease payments as of December 31, 1997. Table 32: Capital Lease Obligations YEAR ENDING DECEMBER 31,1997 GOLF COURSE FUND 1998 $ 49,485 1999 45,310 2000 20,298 2001 16,160 2002 12,120 Total Minimum Lease Payments 143,373 Less: Interest 19,426 Present Value of Minimum Lease Payments $123,947 35 City of Renton Notes to the Financial Statements NOTE 13-DEFERRED CHARGES IN PROPRIETARY FUNDS In accordance with generally accepted accounting principles for regulated businesses,the Waterworks Utility Fund had a deferred cost of $320,000 in 1982 that was a Utility Fund payment for construction of a new City Shop facility, which was occupied in mid-1984. The facility was constructed from the proceeds of a$2,300,000 General Obligation Bond Issue. The $320,000 will be credited toward the Utility's portion of the rental charge for the new facility and will be expensed over the 20-year life of the bond issue. As of December 31, 1997,there was a balance remaining of$96,000. NOTE 14-RESERVATIONS AND DESIGNATIONS OF FUND EQUITY Following is an analysis of fund equity reservations and designations by type for each of the City's fund groups. Table 33: Reservations of Fund Equity GENERAL DEBT TRUST EQUITY RESERVED FOR: FUND SERVICE I ENTERPRISE &AGENCY TOTAL Debt Service/Arbitrage $ 0 $2,919,630 $3,551,070 $ 0 $ 6,470,700 Advances/Other Funds/Prepaids 87,000 0 0 0 87,000 Pension Obligation 0 0 0 6,642,979 6,642,979 Total $87,000 $2,919,630 $3,551,070 $6,642,979 $13,200,679 Table 34: Unreserved Designated Fund Equity EQunY DESIGNATED FOR: GENERAL FUND Inmate Health&Welfare $ 21,026 Investigative Fund Confiscations 86,022 Total $107,048 NOTE 15-SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City maintains four enterprises whose operations are accounted for in the Enterprise Funds and are financed and operated in a manner similar to private business. It is generally intended that the costs of providing goods or services to the general public on a continuing basis should be financed or recovered primarily through user charges. Segment information for the year ended December 31, 1997 follows: Table 35: Segment Information for Enterprise Funds WATERWORKS TOTAL ENTERPRISE ITEM UTILITY AIRPORT SOLID WASTE GOLF COURSE FUNDS Total Operating Revenue $ 20,574,191 $ 862,832 $ 7,232,906 $ 2,046,680 $ 30,716,609 Operating Expenses: Operations&Maintenance 11,235,553 281,295 6,402,468 1,261,270 19,180,586 Administrative&General 1,685,029 105,173 0 0 1,790,202 Insurance 0 10,446 0 0 10,446 ' Taxes 1,659,593 0 945,235 9,579 2,614,407 Depreciation 2,638,352 175,516 53,341 242,934 3,110,143 Total Operating Expenses 17,218,527 571,430 7,401,044 1,513,783 26,705,784 36 City of Renton Notes to the Financial Statements Table 35: Segment Information for Enterprise Funds continued WATERWORKS TOTAL ENTERPRISE ITEM UTILITY FAIRPORT SOLID WASTE GOLF COURSE FUNDS Net Operating Income Loss 3,355,664 290,402 168,138 532,897 4,010,825 Non-Operating Revenue Net of Expenses (833,835) 140,663 229,345 (308,560) (772,387) Operating Transfers In Out 81,657 0 0 603,226 684,883 Net Income Loss 2,603,486 431,065 61,207 827,563 3,923,321 Net Working Capital 5,970,692 2,794,047 869,146 608,955 10,242,840 ' Additions to Property,Plant and Equipment,Net of Disposals 8,924,384 63,629 53,341 47,035 8,854,449 Total Assets 137,022,325 6,699,277 1,527,943 10,508,676 155,758,221 Long Term Debt,Net of Current Portion , &Bond Premium/Discount 28,561,625 0 165,467 5,977,343 34,704,435 Current Capital Contributions 5,909,376 124,079 0 0 5,785,297 Total Fund Equity $ 105,030,593 $ 6,577,712 1$ 810,8391 $ 3,777,813 $ 116,196,957 NOTE 16-LITIGATION The City is involved in several pending lawsuits. The City Attorney estimates that the potential claims against the City not covered by , insurance resulting from such litigation would not materially affect the financial statements of the City. NOTE 17-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,stop-gap insurance is purchased , to cover medium and large losses. And third,the City reserves the right to utilize the provisions of RCW 35A.31.060 to fund catastrophic or uninsured losses. This State statute allows cities to levy a non-voted property tax increase to pay for uninsured claims. An analysis of the self-insurance retention levels, limits of insurance, and claims administrators for the major types of coverages are presented below. , During 1997, there were no reductions in insurance coverage, and settlements for the last three years have not exceeded insurance coverage. RISK RETENTIONTable 36: Risk Management ' RISK SHARING TYPE OF COVERAGE OCCURRENCE CLAIMS ADM AGGREGATE I CARRIER Property $100,000 Giesy,Greer&Gunn $77,167,340 Reliance ' Liability 250,000 Giesy,Greer&Gunn 9,500,000 Genesis Auto Liability 250,000 Giesy,Greer&Gunn 4,750,000 Genesis Boiler&Machinery 5,000 Giesy,Greer&Gunn 30,000,000 American Manufacturing Mutual Public Officials 25,000 Giesy,Greer&Gunn 2,000,000 Mount Airy Crime 10,000 Giesy,Greer&Gunn 1,000,000 Aetna Casualty&Surety Airport Liability 5,000 Giesy,Greer&Gunn 5,000,000 American Eagle Underground Storage Tank 10,000 Giesy,Greer&Gunn 1,000,000 Commerce&Industry Worker's Comp 225,000 Johnston&Culberson 2,000,000 Frontier ,Employee Health 90,000 HMA,Inc N/A Safeco 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 in Table 36. As of December 31, 1997, the City had accrued the following amounts for outstanding claims. Table 37: Outstanding Claims INCURRED/ INCURRED BUT NOT TOTAL CLAIMS COVERAGE REPORTED REPORTED PAYABLE Property&Liability $ $ 913,175 $ 913,175 Worker's Compensation 106,992 106,992 Employee Health 151,308 151,308 Total $ $1,171,475 $1,171,475 Claims settlements and loss expenses are accrued in the Insurance Fund for the estimated settlement value of both reported and unreported claims. The Insurance Fund is used for collecting interfund premiums from insured funds and departments, and for paying 37 City of Renton Notes to the Financia!Statements claims settlements. Interfund premiums are assessed on the basis of claims history, number of employees, and value of assets. Table 38 below presents changes in claims liabilities for 1996 and 1997. Table 38: Chan es in Claims Liabilities PROPERTY LIABILITY WORKERS COMPENSATION EMPLOYEE HEALTH TOTALS ITEM 1997 1996 1997 1996 1 1997 1996 1997 1996 Claims Liabilities at Beginning of Year $1,022,254 $ 959,288 $ 58,99 $ 94,27 $ 149,95 $ 90,48 $1,231,21C $1,144,05 Claims Expenses: Current Year and Changes in Estimates 650,013 1,195,878 411,89E 169,829 2,905,698 2,519,18E 3,967,607 3,884,89 Claims Payments 759,092 1,132,912 363,903 205,107 2,904,347 2,459,714 4,027,342 3,797,733 laims Liabilities at End of Year $ 913,175 $1,022,254 $106,99A $ 58,99 $ 151,30 $ 49,951 $1,171,475 $1,231,21 NOTE 18-SUBSEQUENT EVENTS There are no material subsequent events pending that have any material affect to the financial statements between January 1, 1998 and June 30, 1998. ' 38 1 1 i 1 1 1 1 1 1 1 1 1 GENERAL FUND The City of Renton's General Fund includes all financial transactions that are not properly accounted for in other funds. It is the largest accounting entity in the City and provides for most of the general operation except for park, street, �. and library functions,which are accounted for in special revenue funds. The major resource to the Fund is general tax revenue. Licenses and permits, charges for service and fines and forfeits provide additional support. m. 40 City of Renton•1997 CAFR GENERAL FUND Page 1 of 1 , COMPARATIVE BALANCE SHEET AS OF DECEMBER 31,1997 With Comparative Totals for December 31,1996 ' 1997 1996 ASSETS: , Cash and Cash Equivalents $ 6,844,459 $ 7,230,301 Receivables: ' Taxes 296,422 397,538 Accounts 3,587,388 3,298,418 Interest on Investments 3,511 0 Due From Other Funds 9,134 13,000 ' Due From Other Governmental Units 33,345 97,210 Prepaid Items 8,000 8,000 Restricted Asset: Deposits 132,975 0 , Interfund Loans/Advances-Non-Current 79,000 79,000 T.OTALASSETS $ 10,994,234 $ 11,123,467 LIABILITIES AND FUND EQUITY: ' LIABILITIES: Vouchers/Contracts Payable $ 355,334 $ 505,254 Due To Other Funds 353,867 153,497 Due To Other Governmental Units 1,478,544 1,291,366 ' Accrued Taxes Payable 309 2,303 Deposits Payable 0 34,634 Deferred Revenues 2,237,242 2,137,847 Accrued Employee Leave Benefits 190,825 144,003 TOTAL LIABILITIES $ 4,616,121 $ 4,268,904 FUND EQUITY: Fund Balance: , Reserved For Advances/Prepaids/Contingency $ 87,000 $ 87,000 Unreserved-Designated: For Inmate Health&Welfare 21,026 16,876 , For Investigative Fund Confiscations 86,022 307,561 Unreserved-Undesignated 6,184,065 6,443,126 TOTAL FUND EQUITY $ 6,378,113 $ 6,854,563 TOTAL LIABILITIES AND FUND EQUITY $ 10,994,234 $ 11,123,467 , 41 ' City of Renton-1997 CAFR GENERAL FUND Page 1 of 1 STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31,1997 With Comparative Totals for Year Ended December 31,1996 1997 1996 REVENUES Taxes $ 23,464,646 $ 22,666,835 Licenses And Permits 2,106,201 1,499,031 Intergovem mental Revenues 2,573,215 2,639,392 Charges For Services 3,830,908 3,505,349 Fines And Forfeits 699,918 932,800 Interest 1,054,477 737,447 Miscellaneous Revenues 96,189 170,831 TOTAL REVENUES $ 33,825,554 $ 32,151,685 EXPENDITURES Current: General Government $ 6,883,085 $ 6,756,099 Security Of Persons And Property 19,249,622 18,344,175 Physical Environment 1,708,461 1,759,571 Economic Environment 2,658,068 2,278,149 Mental And Physical Health 7,570 5,746 Capital Outlay 41,172 298,506 Debt Service: Principal Retirement 33,018 33,018 Interest&Fiscal Charges 8,543 11,391 TOTAE EXPENbT7777 $ 30,589,539 $ 29,486,655 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ 3,236,015 $ 2,665,030 OTHER FINANCING SOURCES(USES) Operating Transfers In $ 0 $ 92,405 Operating Transfers(Out) (3,415,226) (734,648) Other Financing(Uses) 0 0 Sale Of General Fixed Assets 38,261 140,714 TOTAL OTHER FINANCING SOURCES(USES) $ (3,376,965) '$ (501,529) EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (140,950) $ 2,163,501 FUND BALANCE JANUARY 1 6,854,563 3,197,555 Residual Equity Transfers In 0 1,500,000 Residual Equity Transfers Out (335,500) (6,493) FUND BALANCE DECEMBER 31 $ 6,378,113 -$ 6,854;563 42 City of Renton-1997 CAFR GENERAL FUND Page 1 of 1 , STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE,BUDGET AND ACTUAL YEAR ENDED DECEMBER 31,1997,With Comparative Actual , Totals for Year Ended December 31,1996 GENERAL VARIANCE FAVORABLE 1996 BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES Taxes $ 23,041,968 $ 23,464,646 $ 422,678 $ 22,666,835 Licenses And Permits 1,174,953 2,106,201 931,248 1,499,031 Intergovernmental Revenues 2,591,108 2,573,215 (17,893) 2,639,392 Charges For Services 3,309,460 3,830,908 521,448 3,505,349 Fines And Forfeits 723,000 699,918 (23,082) 932,800 , Interest 555,000 1,054,477 499,477 737,447 Miscellaneous Revenues 160,645 96,189 (64,456) 170,831 TOTAL REVENUES $ 31,556,134 $ 33,825,554 $ 2,269,420 $ 32,151,685 ' EXPENDITURES Current: General Government $ 7,236,191 $ 6,883,085 $ 353,106 $ 6,756,099 , Security Of Persons And Property 19,777,731 19,249,622 528,109 18,344,175 Physical Environment 1,748,629 1,708,461 40,168 1,759,571 Economic Environment 3,048,894 2,658,068 390,826 2,278,149 Mental And Physical Health 10,296 7,570 2,726 5,746 Capital Outlay 54,250 41,172 13,078 298,506 Debt Service: Principal Retirement 38,818 33,018 5,800 33,018 Interest&Fiscal Charges 8,544 8,543 1 11,391 TOTALE*.ENDITURES $ 31,923,353 $ 30;589;539 $ 1,333,814 $ 29,486,655' EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ (367,219) $ 3,236,015 $ 3,603,234 $ 2,665,030 OTHER FINANCING SOURCES(USES) Operating Transfers In $ 0 $ 0 $ 0 $ 92,405 Operating Transfers(Out) (3,561,914) (3,415,226) 146,688 (734,648) Other Financing Sources 2,000 0 (2,000) 0 Sale Of General Fixed Assets 0 38,261 38,261 140,714 TWAL OTHER FINANCING SOURCES(USES) $ (3,559,914) $ (3,376,965) $ 182,949 $ (501,529) EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (3,927,133) $ (140,950) $ 3,786,183 $ 2,163,501 FUND BALANCE JANUARY 1 6,720,739 6,854,563 133,824 3,197,555 Residual Equity Transfers In 0 0 0 1,500,000 Residual Equity Transfers(Out) (335,500) (335,500) 0 (6,493) FUN©B"CE DECEMBER 31 $ 2,458,106 $ 6,378,113 $ 3,920,007 $ 6,854.563:; 43 ' r SPECIAL REVENUE FUNDS Special Revenue Funds account for the proceeds of specific revenue sources other than special assessments, expendable trust, or major capital projects. These revenues finance particular activities or functions as required by law or administrative regulations. The City of Renton's Special Revenue Funds are summarized below. Park Fund: Accounts for operation of the City's parks and recreation system, maintenance of municipal buildings and landscaping services for public facilities. Resources are primarily from general tax revenues and charges for services. Arterial Street Fund: Established in accordance with RCW 82.36.020 for the �. administration of the State levied motor vehicle %cent gasoline tax distributed to Renton. Expenditures are limited by law to capital improvements of City arterial streets, Street Fund: Established in accordance with RCW 35A.37.010 to account for maintenance and improvement of the City's street and traffic control systems. Major sources of support are general tax revenues and the State levied tax on motor vehicle fuels distributed to Renton,to be used for City street purposes. Community Development Block Grant Fund: Established in 1992 to administer the Federally funded Community Development Block Grant activity per City Ordinance#4335. The program was reported in the General Fund in prior years. Impact Mitigation Fund: Created to account for monies collected from developers to offset impacts created by their developments to City's facilities. Library Fund: Accounts for operation of the City's library system, including central and branch facilities. Resources to the fund are mainly general tax revenues and library fines. Paths and Trails Reserve Fund: Created for the purpose of planning, accommodating, establishing and maintaining certain paths and trails. One-half of one-percent(1/2 of 1%) of the State levied motor vehicle fuel fax distributed to Renton,is allocated to this fund each year. One Percent for Art Fund: The fund is established to account for required City's contribution equal to 1% of general governmental capital project funding for art projects. Cable Communications Development Fund: Provision for promotion and development of cable communications according to City Ordinances#3155 and #3137. r t 44 City of Renton-1997 CAFR SPECIAL REVENUE FUNDS Page 1 of 2 , COMBINING BALANCE SHEET AS OF DECEMBER 31,1997 With Comparative Totals for December 31,1996 ' PARK ARTERIAL STREET COMM DEVELOP STREET BLOCK GRANTS ASSETS: , Cash and Cash Equivalents $ 1,059,726 $ 84,730 $ 326,758 $ 24,923 Investments 0 50,000 225,000 0 Receivables: Accounts 21,724 0 20,114 0 Interest on Investments 0 928 6,265 0 Due From Other Funds 15,299 0 52,602 0 , Due From Other Governmental Units 0 0 209,422 71,461 TOTAL ASSETS $ 1,096,749 $ 135,658 $ 840,161 $ 96,384 LIABILITIES AND FUND EQUITY: LIABILITIES: , Vouchers/Contracts Payable $ 79,357 $ 0 $ 43,462 $ 1,650 Retainage Payable 0 0 0 0 Due To Other Funds 1,467 0 0 0 ' Due To Other Governmental Units 0 0 0 3,449 Accrued Taxes Payable 5,117 0 676 2 Deposits Payable 18,825 0 0 0 Accrued Employee Leave Benefits 46,650 0 23,201 0 Interfund Loans/Advances-Non-Current 0 0 0 75,000 TOTAL LIABILITIES $ 151,416 $ 0 $ 67,339 $ 80,101 FUND EQUITY: , Fund Balance: Unreserved-Undesignated $ 945,333 $ 135,658 $ 772,822 $ 16,283 TOTAL FUND EQUITY $ 945,333 $ 135,658 $ 772,822 $ 16,283 TOTAL LIABILITIES AND FUND EQUITY $ 1,096,749 $ 135,658 $ 840,161 $ 96,384 i i 1 45 i City of Renton e 1997 CAFR Page 2 of 2 CABLE TOTALS IMPACT LIBRARY PATHS ONE PERCENT COMMUNICATIONS MITIGATION &TRAILS FOR ART DEVELOPMENT 1997 1996 $ 2,125,596 $ 335,489 $ 2,807 $ 28,927 $ 162,967 $ 4,151,923 $ 1,821,465 4,438,697 0 0 0 0 4,713,697 7,508,217 0 0 0 0 0 41,838 104,496 56,275 0 0 0 0 63,468 183,815 0 0 0 0 0 67,901 42,165 0 0 0 0 0 280,883 41,430 $ 6,620,568 $ 335,489 $ 2,807 $ 28,927 $ 162,967 $ 9,319,710 $ 9,701,588 $ 16 $ 6,952 $ 0 $ 0 $ 0 $ 131,437 $ 263,232 0 0 0 0 0 0 5,610 8,418 0 0 0 0 9,885 5,693 0 0 0 0 0 3,449 0 n 0 211 0 0 0 6,006 2,582 0 0 0 0 0 18,825 22,016 0 6,122 0 0 0 75,973 72,806 0 0 0 0 0 75,000 75,000 $ 8,434 $ 13,285 $ 0 $ 0 $ 0 $ 320,575 $ 446,939 $ 6,612,134 $ 322,204 $ 2,807 $ 28,927 $ 162,967 $ 8,999,135 $ 9,254,649 $ 6,612,134 $ 322,204 $ 2,807 $ 28,927 $ 162,967 $ 8;999,135 $ 9,254,649 $ 6,620,568 $ 335,489 $ 2,807 $ 28,927 $ 162,967', $ 9,319,710 $ 9,701,588 46 City of Renton-1997 CAFR SPECIAL REVENUE FUNDS Page 1 of 2 COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES YEAR ENDED DECEMBER 31,1997 With Comparative Totals for Year Ended December 31,1996 PARK ARTERIAL STREET COMM DEVELOP STREET BLOCK GRANTS REVENUES Taxes $ 5,833,906 $ 0 $ 2,818,768 $ 0 Licenses And Permits 0 0 39,648 0 Intergovernmental Revenues 4,939 328,595 914,862 334,852 Charges For Services 686,578 0 1,017,801 0 Fines And Forfeits 0 0 0 0 Contributions 0 0 0 0 ' Interest 39,586 3,346 38,668 0 Miscellaneous Revenues 459,270 0 12,898 0 TOTAL REVENUES $ 7,024,279 $ 331,941" $ 4,842,645 $ 334,852 EXPENDITURES Current: General Government $ 1,792,130 $ 0 $ 0 $ 0 Transportation 135,606 0 4,760,629 0 ' Economic Environment 484,744 0 0 271,222 Culture and Recreation 4,441,506 0 0 0 Capital Outlay 11,513 0 30,070 47,319 TOTAL EXPENDITURES $ 6,865,499 $ 0 $ 4,790;$99 $ 318,541 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ 158,780 $ 331,941 $ 51,946 $ 16,311 OTHER FINANCING SOURCES(USES) , Interfund Loan Repayments $ 0 $ 0 $ 0 $ 0 Operating Transfers In 75,000 0 0 0 Operating Transfers(Out) 0 (320,000) (400,000) (8,704) Other Financing Sources(Uses) 0 0 (60,334) 0 Sale Of General Fixed Assets 35,753 0 115,440 0 TOTAL OTHER FINANCINGSOURCES(USES) $ 110,753 $ (320,000) $ (344,894) $ (8,704) ' EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ 269,533 $ 11,941 $ (292,948) $ 7,607 FUND BALANCE JANUARY 1 340,300 123,717 1,065,770 8,676 Residual Equity Transfers In 335,500 0 0 0 Residual Equity Transfers Out 0 0 0 0 , FUND BALANCE DECEMBER 31 $ 945,333 $ 135;658 $ 772,822 r$ 16,283 47 , City of Renton-1997 CAFR Page 2 of 2 ONE CABLE TOTALS IMPACT LIBRARY PATHS PERCENT COMMUNICATIONS MITIGATION &TRAILS FOR ART DEVELOPMENT 1997 1996 $ 1,591,132 $ 1,130,415 $ 0 $ 0 $ 0 $ 11,374,221 $ 10,991,244 0 0 0 0 0 39,648 69,976 0 8,140 318 0 0 1,591,706 1,405,219 0 11,008 0 0 0 1,715,387 1,838,680 0 33,643 0 0 0 33,643 25,282 800,000 0 0 0 0 800,000 0 328,782 12,671 0 2,396 6,584 432,033 570,387 0 2,477 0 0 2,500 477,145 449,096 $ 2,719,914 $ 1,198,354 $ 318 $ 2,396 $ 9,084 $ 16,463,783 $ 15,349,884 $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,792,130 $ 1,664,735 0 0 0 0 0 4,896,235 4,509,833 0 0 0 0 0 755,966 744,354 0 1,136,533 0 0 14,239 5,592,278 5,429,238 3,313,657 6,119 0 35,000 11,665 3,455,343 2,004,382 $ 3,313,657 $ 1,142,662 $ 0 $ 35,000 $ 25,904 $ 16,491,952 $ - 14,352;542; $ (593,743) $ 55,702 $ 318 $ (32,604) $ (16,820) $ (28,169) $ 997,342 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ (148,000) 3,171 0 0 0 0 78,171 50,239 0 0 0 (3,171) 0 (731,875) (951,843) 0 0 0 0 0 (60,334) 0 0 0 0 0 0 151,193 125,757 $ 3,171 $ 0 $ 0 $ (3,171) $ 0 $ (562,845) $ (923,847) $ (590,572) $ 55,702 $ 318 $ (35,775) $ (16,820) $ (591,014) $ 73,495 7,202,706 266,502 2,489 64,702 179,787 9,254,649 10,681,154 0 0 0 0 0 335,500 0 0 0 0 0 0 0 (1,500,000) $ 6,612,134 $ 322,204 $ 2,807 $ 28,927 $ 162,967 $ 8,999,135 $ ;9,254,649 48 City of Renton-1997 CAFR SPECIAL REVENUE FUNDS Page 1 of 7 COMBINING STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE,BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1997,With Comparative Actual Totals for Year Ended December 31,1996 PARK VARIANCE FAVORABLE 1996 BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES , Taxes $ 5,809,178 $ 5,833,906 $ 24,728 $ 5,469,140 Licenses And Permits 0 0 0 0 Intergovernmental Revenues 0 4,939 4,939 26,971 ' Charges For Services 577,812 686,578 108,766 637,561 Fines And Forfeits 0 0 0 0 Contributions 0 0 0 0 Interest 24,000 39,586 15,586 24,414 Miscellaneous Revenues 508,912 459,270 (49,642) 443,904 TOTAL REVENUES $ 6,919,902 $ 7,024,279 $ 104,377 $ 6,601,990 EXPENDITURES , Current General Government $ 1,829,185 $ 1,792,130 $ 37,055 $ 1,664,735 Transportation 239,594 135,606 103,988 108,096 Economic Environment 535,463 484,744 50,719 483,053 Culture and Recreation 4,715,717 4,441,506 274,211 4,327,163 Capital Outlay 29,262 11,513 17,749 37,628 f�TAC EXPENDITURES $ 7,349,221 $ 6,865,499 $ 483,722 $ 6,620,675 ' EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ (429,319) $ 158,780 $ 588,099 $ (18,685) OTHER FINANCING SOURCES(USES) ' Interfund Loan Repayments $ 0 $ 0 $ 0 $ 0 Operating Transfers In 75,000 75,000 0 6,535 Operating Transfers(Out) 0 0 0 (60,943) Other Financing Sources(Uses) 0 0 0 0 Sale Of General Fixed Assets 108,856 35,753 (73,103) 48,296 TOTAL OTHER FINANCING SOURCES(USES) $ 183,856 $ 110,753 $ (73,103) $ (6,112) EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (245,463) $ 269,533 $ 514,996 $ (24,797) ' FUND BALANCE JANUARY 1 378,518 340,300 (38,218) 365,097 Residual Equity Transfers In 335,500 335,500 0 0 Residual Equity Transfers(Out) 0 0 0 0 FUND BALANCE DECEMBER 31 $ 468,555 $ 945,333 $ 476,778 ::$ 340,300 49 , City of Renton-1997 CAFR Page 2 of 7 ARTERIAL STREET STREET VARIANCE VARIANCE FAVORABLE 1996 FAVORABLE 1996 BUDGET ACTUAL <UNFAVORABLE> ACTUAL BUDGET ACTUAL <UNFAVORABLE> ACTUAL $ 0 $ 0 $ 0 $ 0 $ 2,863,356 $ 2,818,768 $ (44,588) $ 2,691,539 0 0 0 0 20,000 39,648 19,648 69,976 326,100 328,595 2,495 318,410 697,877 914,862 216,985 721,730 0 0 0 0 1,035,771 1,017,801 (17,970) 1,187,167 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7,500 3,346 (4,154) 13,586 85,000 38,668 (46,332) 131,913 0 0 0 0 4,171 12,898 8,727 1,104 $ 333,600 $ 331,941 $ (1,659) $ 331,996 $ 4,706,175 $ 4,842,645 $ 136,470 $ 4,803;429 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 4,886,162 4,760,629 125,533 4,401,737 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 47,928 30,070 17,858 44,777 $ 0 $ U $ 0 $ 0 $ 4,934;090 $ 4,790,699 $ 143,391 $ 4,446,514`' $ 333,600 $ 331,941 $ (1,659) $ 331,996 $ (227,915) $ 51,946 $ 279,861 $ 356,915 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ (148,000) 0 0 0 0 0 0 0 0 (320,000) (320,000) 0 (379,248) (400,000) (400,000) 0 0 0 0 0 0 0 (60,334) (60,334) 0 0 0 0 0 101,323 115,440 14,117 77,461 $ (320,000) $ (320,000) $ 0;,- $ (379,248) $ (298,677) $ (344,894) $ (46,217) $', (70,539) $ 13,600 $ 11,941 $ (1,659) $ (47,252) $ (526,592) $ (292,948) $ 233,644 $ 286,376 122,334 123,717 1,383 170,969 939,997 1,065,770 125,773 2,279,394 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (1,500,000) $ 135,934 $ 135,658 '$ (276) $ 123,717 $ 413;405 $ 772,822 $ 359,417 $; 1;065,770 50 City of Renton-1997 CAFR SPECIAL REVENUE FUNDS Page 3 of 7 COMBINING STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE,BUDGET AND ACTUAL YEAR ENDED DECEMBER 31,1997,With Comparative Actual Totals for Year Ended December 31,1996 COMM DEVELOPMENT BLOCK GRANTS VARIANCE FAVORABLE 1996 BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES Taxes $ 0 $ 0 $ 0 $ 0 Licenses And Permits 0 0 0 0 Intergovernmental Revenues 631,711 334,852 (296,859) 335,008 Charges For Services 0 0 0 0 Fines And Forfeits 0 0 0 0 Contributions 0 0 0 0 Interest 0 0 0 0 Miscellaneous Revenues 0 0 0 0 TOTAL REVENUES $ 631,711 $ 334,852 $ (296,859) $ 335,008 EXPENDITURES Current: General Government $ 0 $ 0 $ 0 $ 0 Transportation 0 0 0 0 Economic Environment 289,785 271,222 18,563 261,301 Culture and Recreation 0 0 0 0 Capital Outlay 300,496 47,319 253,177 73,735 TOTAL EXPENDITURES $ 590,281 $ 318,541 $ 271,740 $ 335,036 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ 41,430 $ 16,311 $ (25,119) $ (28) OTHER FINANCING SOURCES(USES) Interfund Loan Repayments $ 0 $ 0 $ 0 $ 0 Operating Transfers In 0 0 0 8,704 Operating Transfers(Out) (8,704) (8,704) 0 0 Other Financing Sources(Uses) 0 0 0 0 Sale Of General Fixed Assets 0 0 0 0 TOTAL OTHER FINANCING SOURCES(USES) $ (8,704) $ (8,704) $ 0 $ 8,704 EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ 32,726 $ 7,607 $ (25,119) $ 8,676 FUND BALANCE JANUARY 1 (32,754) 8,676 41,430 0 Residual Equity Transfers In 0 0 0 0 Residual Equity Transfers(Out) 0 0 0 0 FUND BALANCE DECEMBER 31 $ (28) $ 16,283 $ 16,311 $ 8,676 51 City of Renton-1997 CAFR Page 4 of 7 IMPACT MITIGATION LIBRARY VARIANCE VARIANCE FAVORABLE 1996 FAVORABLE 1996 BUDGET ACTUAL <UNFAVORABLE> ACTUAL BUDGET ACTUAL <UNFAVORABLE> ACTUAL $ 103,163 $ 1,591,132 $ 1,487,969 $ 1,756,897 $ 1,135,122 $ 1,130,415 $ (4,707) $ 1,073,668 0 0 0 0 0 0 0 0 0 0 0 0 13,105 8,140 (4,965) 0 0 0 0 2,154 10,000 11,008 1,008 11,798 0 0 0 0 19,800 33,643 13,843 25,282 0 800,000 800,000 0 0 0 0 0 300,000 328,782 28,782 379,169 7,500 12,671 5,171 12,249 0 0 0 0 500 2,477 1,977 4,088 $ 403,163 $ 2,719,914 $ 2,316,751 $ 2,138,220 $ 1,186,027 $ 1,198,354' $ 12,327 $ 1,127,085 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,140,014 1,136,533 3,481 1,094,592 7,146,325 3,313,657 3,832,668 1,803,808 18,000 6,119 11,881 12,513 $ 7,146,325 $ 3,313,657 $ 3,832,668 $ 1,803;808 $ 1,1581014 $ 1,142,652 $ 15,3612' $ 1,107,105;: $ (6,743,162) $ (593,743) $ 6,149,419 $ 334,412 $ 28,013 $ 55,702 $ 27,689 $ 19,980 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 3,171 3,171 0 0 0 0 0 0 0 0 (507,557) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 0 $ 3,171 $ 3,171 ` $ (507,557) $ 0 $ 0 $ 0 $ 0 $ (6,743,162) $ (590,572) $ 6,152,590 $ (173,145) $ 28,013 $ 55,702 $ 27,689 $ 19,980 7,043,162 7,202,706 159,544 7,375,851 268,704 266,502 (2,202) 246,522 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 6,612,134 '$ 6;312,134 $ 7,202,706 $ 296,717 $ 322;204 $ 25,487 $'' 266,502 i 52 City of Renton-1997 CAFR ' SPECIAL REVENUE FUNDS Page 5 of 7 , COMBINING STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE,BUDGET AND ACTUAL , YEAR ENDED DECEMBER 31,1997,With Comparative Actual Totals for Year Ended December 31,1996 PATHS AND TRAILS , VARIANCE FAVORABLE 1996 ' BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES Taxes $ 0 $ 0 $ 0 $ 0 Licenses And Permits 0 0 0 0 Intergovernmental Revenues 3,400 318 (3,082) 3,100 ' Charges For Services 0 0 0 0 Fines And Forfeits 0 0 0 0 Contributions 0 0 0 0 Interest 0 0 0 0 , Miscellaneous Revenues 0 0 0 0 TOTAL REVENUES $ 3,400 $ 318 $ (3,082) $ 3,100 EXPENDITURES Current: General Government $ 0 $ 0 $ 0 $ 0 Transportation 0 0 0 0 , Economic Environment 0 0 0 0 Culture and Recreation 0 0 0 0 Capital Outlay 0 0 0 0 TOTAL EXPENDITURES $ 0 $ 0 $ 0` ,$ 0 , EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ 3,400 $ 318 $ (3,082) $ 3,100 OTHER FINANCING SOURCES(USES) ' Interfund Loan Repayments $ 0 $ 0 $ 0 $ 0 Operating Transfers In 0 0 0 0 Operating Transfers(Out) 0 0 0 (4,095) ' Other Financing Sources(Uses) 0 0 0 0 Sale Of General Fixed Assets 0 0 0 0 TOTAL OTHER FINANCING SOURCES(USES) $ 0 $ 0 $ 0 $ (4,095) ' EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ 3,400 $ 318 $ (3,082) $ (995) , FUND BALANCE JANUARY 1 2,489 2,489 0 3,484 Residual Equity Transfers In 0 0 0 0 Residual Equity Transfers(Out) 0 0 0 0 , FUND BALANCE DECEMBER 31 $ 5,889 $ 2,807 $ (3,082) $ 2,489'. 53 ' City of Renton-1997 CAFR Page 6 of 7 ONE PERCENT FOR ART CABLE COMMUNICATIONS DEVELOPMENT VARIANCE VARIANCE FAVORABLE 1996 FAVORABLE 1996 BUDGET ACTUAL <UNFAVORABLE> ACTUAL BUDGET ACTUAL <UNFAVORABLE> ACTUAL $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,500 2,396 896 1,988 6,000 6,584 584 7,068 0 0 0 0 0 2,500 2,500 0 $ 1,500 $ 2,396 $ 896 $ 1,988 $ 6,000 $ 9,084 $ 3,084 $ _7,068' $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 13,000 14,239 (1,239) 7,483 66,201 35,000 31,201 15,000 13,000 11,665 1,335 16,921 $ 66,201 $° 35,000 $ 31,201 $ 15,000 $ 26,000 $ 25,904 $ 96 $ 24,404 $ (64,701) $ (32,604) $ 32,097 $ (13,012) $ (20,000) $ (16,820) $ 3,180 $ (17,336) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 35,000 0 0 0 0 0 (3,171) (3,171) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 S' 0 $ (3,171) $ (3,171)-$ 35,000 $ 0 $ 0 $ 0 $ 0',, $ (64,701) $ (35,775) $ 28,926 $ 21,988 $ (20,000) $ (16,820) $ 3,180 $ (17,336) 64,701 64,702 1 42,714 177,337 179,787 2,450 197,123 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 28,927 $ 28,927 $ 64,702 $ 157,337 $ 162,967 $ 5,630 $ 179,787 54 City of Renton-1997 CAFR SPECIAL REVENUE FUNDS Page 7 of 7 COMBINING STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE,BUDGET AND ACTUAL YEAR ENDED DECEMBER 31,1997,With Comparative Actual Totals for Year Ended December 31,1996 TOTALS VARIANCE FAVORABLE 1996 BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES Taxes $ 9,910,819 $ 11,374,221 $ 1,463,402 $ 10,991,244 Licenses And Permits 20,000 39,648 19,648 69,976 Intergovernmental Revenues 1,672,193 1,591,706 (80,487) 1,405,219 Charges For Services 1,623,583 1,715,387 91,804 1,838,680 Fines And Forfeits 19,800 33,643 13,843 25,282 Contributions 0 800,000 800,000 0 Interest 431,500 432,033 533 570,387 , Miscellaneous Revenues 513,583 477,145 (36,438) 449,096 TOTALREVENUES $ 14,191,478 $ 16,463,783 $ 2,272,305 $ 15,349,884 EXPENDITURES Current: General Government $ 1,829,185 $ 1,792,130 $ 37,055 $ 1,664,735 Transportation 5,125,756 4,896,235 229,521 4,509,833 Economic Environment 825,248 755,966 69,282 744,354 Culture and Recreation 5,868,731 5,592,278 276,453 5,429,238 Capital Outlay 7,621,212 3,455,343 4,165,869 2,004,382 TOTAL EXPENDITURES $ 21,270,132 $ 16,491,952 $ 4,778,180 $ 14,352,542 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ (7,078,654) $ (28,169) $ 7,050,485 $ 997,342 OTHER FINANCING SOURCES(USES) Interfund Loan Repayments $ 0 $ 0 $ 0 $ (148,000) Operating Transfers In 75,000 78,171 3,171 50,239 Operating Transfers(Out) (728,704) (731,875) (3,171) (951,843) Other Financing Sources(Uses) 0 (60,334) (60,334) 0 Sale Of General Fixed Assets 210,179 151,193 (58,986) 125,757 TOTAL OTHERFINANCING SOURCES(USES) $ (443,525) $ (562,845) $ = (119,320) $ (923,847) EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (7,522,179) $ (591,014) $ 6,931,165 $ 73,495 FUND BALANCE JANUARY 1 8,964,488 9,254,649 290,161 10,681,154 Residual Equity Transfers In 335,500 335,500 0 0 Residual Equity Transfers(Out) 0 0 0 (1,500,000) , FUND BALANCE DECEMBER 31 $ 1,777,809 $ 8,999,135 $ 7,221,326 $ 9,254,649 55 DEBT SERVICE FUNDS Debt Service Funds account for the accumulation of resources for, and the payment of principal and interest for the City's general obligation long-term debt and special assessment debt. The City of Renton pledges its full faith and credit for payment of these obligations. Resources for redemption of Council- approved (limited) issues are from the general property tax levy. Revenue for voter-approved (unlimited) debt service obligations originates from a special property tax levy. Resources for the payment of the special assessment debt are from assessments levied against benefited properties. The outstanding amount is recorded in the General Long Term Debt Account Group. �. 1997 Limited General Obligation Bond Redemption Fund: Accounts for debt service on a Council-approved bond issue, which provided funding for the purchase of the new Renton City Hall in May 1997. 1978 Limited General Obligation Bond Redemption Fund: Accounts for debt service on a Council-approved bond issue, which provided partial funding for construction of the Renton Senior Activity Center. ,. 1989 Limited General Obligation Refunding Bond Redemption Fund: Accounts for debt service on a Council-approved refunding bond issue, which refunded the 1983 limited refunding bond issue. 1983 Unlimited General Obligation Refunding Bond Redemption Fund: Accounts for debt service on an unlimited refunding bond issue, which refunded the 1980 and 1982 voter-approved bond issues. Bond proceeds financed the development of Gene Coulon Memorial Beach Park. General Government Miscellaneous Debt Service Fund: Accounts for debt " service on installment contracts for equipment, City Shop land purchase, the 1984 and 1985 Limited General Obligation Bond issues for equipment and the 1986 Limited Bond issued to finance a community center, library improvements, permanent financing for purchase of a golf course; acquisition of wetlands property and equipment. 1989 Unlimited General Obligation Bond Redemption Fund: Accounts for debt service on a voter-approved bond issue, which provided financing to acquire, construct, rehabilitate, equip and develop low income housing for the elderly. Special Assessment Debt Fund: This fund accounts for the special assessment collections and debt service payments for all local improvement districts located within the City. Special Assessment Guaranty Fund: This fund was established in accordance with State law for the purpose of guaranteeing the payment of outstanding Special Assessment Bonds and coupons. 56 City of Renton-1997 CAFR DEBT SERVICE FUNDS Page 1 of 2 .� COMBINING BALANCE SHEET AS OF DECEMBER 31,1997 With Comparative Totals for December 31,1996 1989 LIMITED 1983 UNLIMITED 1997 LIMITED 1978 LIMITED GO REFUNDING GO REFUNDING +� GO BONDS GO BONDS BONDS BONDS ASSETS: ' Cash and Cash Equivalents $ 6,152 $ 2,478 $ 62,987 $ 524,625 Cash With Fiscal Agent 0 15,275 0 10,344 Investments 0 0 0 0 t Receivables, Taxes 0 0 0 17,179 Special Assessments-Current 0 0 0 0 ' Special Assessments-Delinquent 0 0 0 0 Special Assessments-Deferred 0 0 0 0 Interest-Special Assessments 0 0 0 0 Interest on Investments 0 0 0 0 ' Due From Other Funds 0 0 0 60,267 TOTAL ASSETS $ 6,152 $ 17,753 $ 62,987 $ 612,415 LIABILITIES AND FUND EQUITY:. , LIABILITIES: Vouchers/Contracts Payable $ 0 $ 0 $ 0 $ 0 Matured Bonds Payable 0 0 0 0 Matured Interest Payable 0 15,275 0 10,344 , Deferred Revenues 0 0 0 17,179 TOTAL LIABILITIES $ 0 $ 15,275 $ 0 $ 27,523 FUND EQUITY: Fund Balance: Reserved For Debt Service $ 6,152 $ 2,478 $ 62,987 $ 584,892 TOTAL FUND EQUITY $ 6,152 $ 2,478 $ 62,987 $ 584,892 t TOTAL LIABILITIES AND FUND EQUITY $ 6,152 $ 17,753 $ 62,987 $ 612,415 57 ' City of Renton-1997 CAFR Page 2 of 2 GENERAL GOVERNMENT SPECIAL SPECIAL TOTALS MISCELLANEOUS 1989 UNLIMITED ASSESSMENT ASSESSMENT DEBT GO BONDS DEBT GUARANTY 1997 1996 $ 528,662 $ 352,536 $ 154,344 $ 140,732 $ 1,772,516 $ 2,040,104 118,380 0 180,000 0 323,999 135,344 0 0 50,000 850,000 900,000 1,425,000 0 12,382 0 0 29,561 38,426 0 0 6,878 0 6,878 165,579 0 0 8,638 0 8,638 45,008 0 0 2,588,120 0 2,588,120 2,998,771 0 0 60,792 0 60,792 77,354 0 0 1,119 6,037 7,156 37,844 69,069 34,314 0 0 163,650 0 $ 716,111 $ 399,232 $ 3,049,891 $ 996,769 $ 5,861,310 $ 6,963,430 $ 0 $ 0 $ 0 $ 0 $ 0 $ 859 0 0 0 0 0 115,000 118,380 0 180,000 0 323,999 20,344 0 12,382 2,588,120 0 2,617,681 3,037,197 $ 118,380 $ 12,382 $ 2,768,120 $ 0 $ 2,941,680 $ 3,173,400 $ 597,731 $ 386,850 $ 281,771 $ 996,769 $ 2,919,630 $ 3,790,030 $ 597,731 $ 386,850 $ 281,771 $ 996,769 $ 2,919,630 $ 3,790,030 $ 716,111 $ 399,232 $ 3,049,891 $ 996,769 $ 5,861,310 $ 6,963,430 58 City of Renton-1997 CAFR ' DEBT SERVICE FUNDS Page 1 of 2 ' COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES YEAR ENDED DECEMBER 31,1997 ' With Comparative Totals for Year Ended December 31,1996 1989 LIMITED 1983 UNLIMITED 1997 LIMITED 1978 LIMITED GO REFUNDING GO REFUNDING ' GO BONDS GO BONDS BONDS BONDS REVENUES ' Taxes $ 435,000 $ 9,200 $ 294,200 $ 867,752 Special Assessments 0 0 0 0 Interest 0 608 901 6,990 ' TOTAL REVENUES $ 435,000 $ 9,808 $ 295,101 $ 874,742 EXPENDITURES Debt Service: ' Principal Retirement $ 0 $ 70,000 $ 200,000 $ 605,000 Interest&Fiscal Charges 428,848 5,939 95,111 149,001 TOTAL EXPENDITURES $ 428,848 $ 75,939 $ 295,111 $ 754,001 ' EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ 6,152 $ (66,131) $ (10) $ 120,741 OTHER FINANCING SOURCES(USES) ' Proceeds Of Long-Term Debt $ 0 $ 77,831 $ 0 $ 0 Operating Transfers In 0 0 0 0 Operating Transfers(Out) 0 0 0 0 ' Funds Remitted to Bond Trustee (76,019) 0 0 TOTAL OTHER FINANCING SOURCES(USES) $ 0 $ 1,812 $ 0 $ 0 EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER ' EXPENDITURES AND OTHER FINANCING USES $ 6,152 $ (64,319) $ (10) $ 120,741 FUND BALANCE JANUARY 1 0 66,797 62,997 464,151 ' Residual Equity Transfers In 0 0 0 0 Residual Equity Transfers Out 0 0 0 0 FUND BALANCE DECEMBER 31 $ 6,152 $ 2,478 $ 62,987 $ 584,892 59 ' City of Renton-1997 CAFR Page 2 of 2 GENERAL GOVERNMENT SPECIAL SPECIAL TOTALS MISCELLANEOUS 1989 UNLIMITED ASSESSMENT ASSESSMENT DEBT GO BONDS DEBT GUARANTY 1997 1996 $ 964,037 $ 494,801 $ 0 $ 0 $ 3,064,990 $ 2,568,239 0 0 393,961 0 393,961 857,664 17,710 2,729 244,470 73,844 347,252 728,377 $ 981,747 $ 497,530 $ 638,431 $ 73,844 $ 3,806,203 $ 4,154,280 $ 484,878 $ 260,000 $ 621,000 $ 0 $ 2,240,878 $ 2,866,406 171,532 242,863 171,394 0 1,264,688 1,022,547 $ 656,410 $ 502,863 $ 792,394 $ 0 $ 3,505,566 $ 3,888,953 $ 325,337 $ (5,333) $ (153,963) $ 73,844 $ 300,637 $ 265,327 $ 1,366,068 $ 0 $ 0 $ 0 $ 1,443,899 $ 553,337 0 0 0 0 0 0 (200,000) 0 (81,657) (923,000) (1,204,657) (257,687) (1,334,260) 0 0 0 (1,410,279) 0 $ (168,192) $ 0 $ (81,657) $ (923,000) $ (1,171,037) $ 295,650 $ 157,145 $ (5,333) $ (235,620) $ (849,156) $ (870,400) $ 560,977 440,586 392,183 516,322 1,846,994 3,790,030 3,767,064 0 0 1,069 0 1,069 1,277,890 0 0 0 (1,069) (1,069) (1,815,901) $ 597,731 $ 386,850 $ 281,771 $ 996,769 $ 2,919,630 $ 3,790,030 60 City of Renton•1997 CAFR ' DEBT SERVICE FUNDS Page 1 of ' COMBINING STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE,BUDGET AND ACTUAL ' YEAR ENDED DECEMBER 31,1997,With Comparative Actual Totals for Year Ended December 31,1996 1997 LIMITED GENERAL OBLIGATION BOND ' VARIANCE FAVORABLE 1996 ' BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES ' Taxes $ 435,000 $ 435,000 $ 0 $ 0 Special Assessments 0 0 0 0 Interest 0 0 0 0 ' TOTAL REVENUES $ 435,000 $ 435,000 $ 0 $ 0 EXPENDITURES Debt Service: ' Principal Retirement $ 0 $ 0 $ 0 $ 0 Interest 8 Fiscal Charges 429,113 428,848 265 0 TOTAL EXPENDITURES $ 429,113 $ 428,848 $ 265 $ 0 EXCESS(DEFICIENCY)OF REVENUES ' OVER EXPENDITURES $ 5,887 $ 6,152 $ 265 $ 0 OTHER FINANCING SOURCES(USES) ' Proceeds Of Long-Term Debt $ 0 $ 0 $ 0 $ 0 Interfund Loan Proceeds 0 0 0 0 Interfund Loan Repayments 0 0 0 0 Operating Transfers In 0 0 0 0 , Operating Transfers(Out) 0 0 0 0 Funds Remitted to Bond Trustee 0 0 0 0 TOTAL OTHER FINANCING SOURCES(USES) $ 0 $ 0 $ 0 $ 0 EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ 5,887 $ 6,152 $ 265 $ 0 FUND BALANCE JANUARY 1 0 0 0 0 , Residual Equity Transfers In 0 0 0 0 Residual Equity Transfers(Out) 0 0 0 0 ' FUND BALANCE DECEMBER 31 $ 5,887 $ 6,152 $ 265 $ 0 1 61 , City of Renton-1997 CAFR Page 2 of 6 1978 LIMITED GENERAL OBLIGATION BOND 1989 LIMITED GENERAL OBLIGATION REFUNDING BOND VARIANCE VARIANCE FAVORABLE 1996 FAVORABLE 1996 BUDGET ACTUAL <UNFAVORABLE> ACTUAL BUDGET ACTUAL <UNFAVORABLE> ACTUAL $ 9,200 $ 9,200 $ 0 $ 74,500 $ 294,200 $ 294,200 $ 0 $ 295,000 0 0 0 0 0 0 0 0 1,000 608 (392) 1,921 1,000 901 (99) 487 $ 10,200 $ 9,808 $ (392) $ 76,421 $ 295,200 $ 295,101 $ (99) $ 295,487 $ 70,000 $ 70,000 $ 0 $ 65,000 $ 200,000 $ 200,000 $ 0 $ 185,000 5,950 5,939 11 9,890 95,195 95,111 84 108,416 $ 75,950 $ 75,939 $ 11 $ 74,890 $ 295,195 $ 295,111 $ 84 $ 293,416 $ (65,750) $ (66,131) $ (381) $ 1,531 $ 5 $ (10) $ (15) $ 2,071 $ 77,831 $ 77,831 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (76,019) (76,019) 0 0 0 0 0 0 $ 1,812 $ 1,812 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ (63,938) $ (64,319) $ (381) $ 1,531 $ 5 $ (10) $ (15) $ 2,071 66,796 66,797 1 65,266 62,997 62,997 0 60,926 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 2,858 $ 2,478 $ (380) $ 66,797 $ 63,002 $ 62,987 $ (15) $ 62,997 62 City of Renton-1997 CAFR ' DEBT SERVICE FUNDS Page 3 of 6 , COMBINING STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE,BUDGET AND ACTUAL , YEAR ENDED DECEMBER 31,1997,With Comparative Actual Totals for Year Ended December 31,1996 1983 UNLIMITED GENERAL OBLIGATION REFUNDING BOND ' VARIANCE FAVORABLE 1996 ' BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES , Taxes $ 878,000 $ 867,752 $ (10,248) $ 686,880 Special Assessments 0 0 0 0 Interest 12,000 6,990 (5,010) 18,691 , TOTAL REVENUES $ 890,000 $ 874,742 $ (15,258) $ 705,571 EXPENDITURES Debt Service: ' Principal Retirement $ 605,000 $ 605,000 $ 0 $ 575,000 Interest&Fiscal Charges 149,393 149,001 392 179,127 TOTAL EXPENDITURES $ 754,393 $ 754,001 $ 392 $ 754,127 EXCESS(DEFICIENCY)OF REVENUES , OVER EXPENDITURES $ 135,607 $ 120,741 $ (14,866) $ (48,556) OTHER FINANCING SOURCES(USES) ' Proceeds Of Long-Term Debt $ 0 $ 0 $ 0 $ 0 Interfund Loan Proceeds 0 0 0 0 Interfund Loan Repayments 0 0 0 0 Operating Transfers In 0 0 0 0 Operating Transfers(Out) 0 0 0 0 Funds Remitted to Bond Trustee 0 0 0 0 TOTAL OTHER FINANCING SOURCES(USES) $ 0 $ 0 $ 0 $ 0 ' EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ 135,607 $ 120,741 $ (14,866) $ (48,556) FUND BALANCE JANUARY 1 464,151 464,151 0 512,707 , Residual Equity Transfers In 0 0 0 0 Residual Equity Transfers(Out) 0 0 0 0 ' FUND BALANCE DECEMBER 31 $ 599,758 $ 584,892 $ (14,866) $ 464,151 63 ' City of Renton-1997 CAFR Page 4 of 6 GENERAL GOVERNMENT MISCELLANEOUS DEBT 1989 UNLIMITED GENERAL OBLIGATION BOND VARIANCE VARIANCE FAVORABLE 1996 FAVORABLE 1996 BUDGET ACTUAL <UNFAVORABLE> ACTUAL BUDGET ACTUAL <UNFAVORABLE> ACTUAL $ 776,900 $ 964,037 $ 187,137 $ 1,026,187 $ 500,000 $ 494,801 $ (5,199) $ 485,672 0 0 0 0 0 0 0 0 5,000 17,710 12,710 10,462 8,000 2,729 (5,271) 12,863 $ 781,900 $ 981,747 $ 199,847 $ 1,036,649 $ 508,000 $ 497,530 $ (10,470) $ 498,535 $ 622,979 $ 484,878 $ 138,101 $ 566,406 $ 260,000 $ 260,000 $ 0 $ 240,000 222,631 171,532 51,099 217,172 243,235 242,863 372 255,506 $ 845,610 $ 656,410 $ 189,200 $ 783,578 $ 503,235 $ 502,863 $ 372 $ 495,506 (63,710) $ 325,337 $ 389,047 $ 253,071 $ 4,765 $ (5,333) $ (10,098) $ 3,029 $ 1,366,068 $ 1,366,068 $ 0 $ 553,337 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (200,000) (200,000) 0 (20,000) 0 0 0 0 (1,334,260) (1,334,260) 0 0 0 0 0 0 $ (168,192) $ (168,192) $ 0 $ 533,337 $ 0 $ 0 $ 0 $ 0 $ (231,902) $ 157,145 $ 389,047 $ 786,408 $ 4,765 $ (5,333) $ (10,098) $ 3,029 440,586 440,586 0 192,189 392,184 392,183 (1) 389,154 0 0 0 0 0 0 0 0 0 0 0 (538,011) 0 0 0 0 $ 208,684 $ 597,731 $ 389,047 $ 440,586 $ 396,949 $ 386,850 $ (10,099) $ 392,183 64 City of Renton-1997 CAFR DEBT SERVICE FUNDS Page 5 of 6 COMBINING STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE,BUDGET AND ACTUAL YEAR ENDED DECEMBER 31,1997,With Comparative Actual Totals for Year Ended December 31,1996 SPECIAL ASSESSMENT DEBT SERVICE FUND , VARIANCE FAVORABLE 1996 , BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES , Taxes $ 0 $ 0 $ 0 $ 0 Special Assessments 573,734 393,961 (179,773) 857,664 Interest 229,351 244,470 15,119 637,152 TOTAL REVENUES $ 803,085 $ 638,431 $ (164,654) $ 1,494,816 EXPENDITURES Debt Service: ' Principal Retirement $ 641,000 $ 621,000 $ 20,000 $ 1,235,000 Interest&Fiscal Charges 173,066 171,394 1,672 252,436 TOTAL EXPENDITURES $ 814,066 $ 792,394 $ 21,672 $ 1,487,436 EXCESS(DEFICIENCY)OF REVENUES ' OVER EXPENDITURES $ (10,981) $ (153,963) $ (142,982) $ 7,380 OTHER FINANCING SOURCES(USES) Proceeds Of Long-Term Debt $ 0 $ 0 $ 0 $ 0 Interfund Loan Proceeds 0 0 0 0 Interfund Loan Repayments 0 0 0 0 Operating Transfers In 0 0 0 0 Operating Transfers(Out) (62,519) (81,657) (19,138) (37,687) Funds Remitted to Bond Trustee 0 0 0 0 TOTAL OTHER FINANCING SOURCES(USES) $ (62,519) $ (81,657) $ (19,138) $ (37,687) EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (73,500) $ (235,620) $ (162,120) $ (30,307) FUND BALANCE JANUARY 1 210,038 516,322 306,284 1,824,519 , Residual Equity Transfers In 1,069 1,069 0 0 Residual Equity Transfers(Out) 0 0 0 (1,277,890) , FUND BALANCE DECEMBER 31 $ 137,607 $ 281,771 $ 144,164 $ 516,322 65 , City of Renton-1997 CAFR Page 6 of 6 SPECIAL ASSESSMENT GUARANTY FUND TOTALS VARIANCE VARIANCE FAVORABLE 1996 FAVORABLE 1996 BUDGET ACTUAL <UNFAVORABLE> ACTUAL BUDGET ACTUAL <UNFAVORABLE> ACTUAL $ 0 $ 0 $ 0 $ 0 $ 2,893,300 $ 3,064,990 $ 171,690 $ 2,568,239 0 0 0 0 573,734 393,961 (179,773) 857,664 26,000 73,844 47,844 46,801 282,351 347,252 64,901 728,377 $ 26,000 $ 73,844 $ 47,844 $ 46,801 $ 3,749,385 $ 3,806,203 $ 56,818 $ 4,154,280 $ 0 $ 0 $ 0 $ 0 $ 2,398,979 $ 2,240,878 $ 158,101 $ 2,866,406 0 0 0 0 1,318,583 1,264,688 53,895 1,022,547 $ 0 $ 0 $ 0 $ 0 $ 3,717,562 $ 3,505,566 $ 211,996 $ 3,888,953 $ 26,000 $ 73,844 $ 47,844 $ 46,801 $ 31,823 $ 300,637 $ 268,814 $ 265,327 $ 0 $ 0 $ 0 $ 0 $ 1,443,899 $ 1,443,899 $ 0 $ 553,337 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (923,000) (923,000) 0 (200,000) (1,185,519) (1,204,657) (19,138) (257,687) 0 0 0 0 (1,410,279) (1,410,279) 0 0 $ (923,000) $ (923,000) $ 0 $ (200,000) $ (1,151,899) $ (1,171,037) $ (19,138) $ 295,650 $ (897,000) $ (849,156) $ 47,844 $ (153,199) $ (1,120,076) $ (870,400) $ 249,676 $ 560,977 1,827,492 1,846,994 19,502 722,303 3,464,244 3,790,030 325,786 3,767,064 0 0 0 1,277,890 1,069 1,069 0 1,277,890 (1,069) (1,069) 0 0 (1,069) (1,069) 0 (1,815,901) $ 929,423 $ 996,769 $ 67,346 $ 1,846,994 $ 2,344,168 $ 2,919,630 $ 575,462 $ 3,790,030 66 1 1 1 1 1 ru � 67 CAPITAL PROTECT FUNDS � Capital Project Funds account for the acquisition or development of major capital facilities,except those projects financed by proprietary funds, Sources of revenue to these funds include general obligation bond proceeds, federal and state grants, general property taxes, interest earnings and transfers from other funds. City Hall Capital Improvement: Accounts for resources and expenditures related to the purchase and remodeling of the building at the corner of Main Avenue South and South Grady Way for the new Renton City Hall. Limited General Obligation Bonds were issued in 1997 and the building was purchased in May 1997, Open Space Capital Improvement Fund: Accounts for open space bond funds received from King County and other grants for the purpose of preserving open space. The bond funds were approved by voters in the fall of 1989 and available for use in May 1990. Some of the projects are: Honey Creek Trail, Springbrook Trail, Cedar River Trail and Lake Washington Waterfront projects. Municipal Facilities Construction Fund: Accounts for the acquisition and development of municipal facilities. Resources included general and special revenue taxes and Council-approved general obligation bonds. General Government Capital Improvement Fund: Accounts for revenues and expenditures for numerous capital improvement projects, to provide .. infrastructure necessary for controlled growth and to address general City needs. Primary resources include general tax revenues, business license fees, Federal and State grants, general obligation bond proceeds and transfers from various cumulative reserve funds. Senior Housing Construction Fund: Accounts for the acquisition, construction, rehabilitation, development and equipment purchases of low -- income housing and facilities for the elderly. Resources are from a 1989 voter- approved general obligation bond issue. Special Assessment Construction Fund: This fund accounts for the construction phase of all Special Assessment local improvement districts (LID) located within the City. The primary resource for this activity is short-term debt or interfund loans that are repaid with permanent financing once the construction of the LID is complete 68 City of Renton-1997 CAFR CAPITAL PROJECT FUNDS Page 1 of 2 ' COMBINING BALANCE SHEET AS OF DECEMBER 31,1997 ' With Comparative Totals for December 31,1996 CITY HALL OPEN SPACE MUNICIPAL CAPITAL CAPITAL FACILITIES CAPITAL IMPROVEMENT IMPROVEMENT CONSTRUCTION IMPROVEMENT ASSETS: ' Cash and Cash Equivalents $ 3,195,891 $ 504,477 $ 2,926,273 $ 526,269 Investments 4,000,579 0 1,275,000 600,000 Receivables- Accounts eceivablesAccounts 0 0 0 0 Interest on Investments 71,701 0 28,546 0 Due From Other Funds 0 0 69,069 0 ' Due From Other Govemmentai Units 0 0 0 4,472,871 TOTAL ASSETS $ 7,268,171 $ 604,477 $ 4,298,888 $ 5,599,140 LIABILITIES AND FUND EQUITY, LIABILITIES: , Vouchers/Contracts Payable $ 0 $ 0 $ 6,293 $ 29,878 Retainage Payable 0 0 16,771 105,777 Due To Other Funds 0 0 0 47,498 ' Accrued Taxes Payable 0 0 41 489 Deferred Revenues 0 0 0 0 Accrued Employee Leave Benefits 0 0 0 0 TOTAL LIABILITIES $ 0 $ 0 $ 23,105 $ 183,642 , FUND EQUITY Fund Balance: Reserved For Arbitrage Rebate $ 0 $ 0 $ 0 $ 0 , Unreserved-Undesignated 7,268,171 604,477 4,275,783 5,415,498 TOTAL FUND EQUITY $ 7,268,171 $ 604,477 $ 4,275,783 $ 5,415,498 TOTAL LIABILITIES AND FUND EQUITY $ 7,268,171 $ 604,477 $ 4,298,888 $ 5,599,140 1 69 ' City of Renton-1997 CAFR Page 2 of 2 SENIOR SPECIAL TOTALS HOUSING ASSESSMENT CONSTRUCTION CONSTRUCTION 1997 1996 $ 0 $ 131,310 $ 7,384,220 $ 1,957,665 0 0 5,875,579 2,715,313 0 0 0 0 0 0 100,247 220,111 0 0 69,069 169 0 0 4,472,871 4,135,146 $ 0 $ 131,310 $ 17,901,986 $ 9,028,404 $ 0 $ 0 $ 36,171 $ 249,902 0 938 123,486 155,573 0 0 47,498 50,821 0 0 530 0 0 0 0 0 0 0 0 0 $ 0 $ 938 $ 207,685 $ 456,296 $ 0 $ 0 $ 0 $ 0 0 130,372 17,694,301 8,572,108 $ 0 $ 130,372 $ 17,694,301 $ 8,572,108 $ 0 $ 131,310 $ 17,901,986 $ 9,028,404 70 City of Renton-1997 CAFR CAPITAL PROJECT FUNDS Page 1 of 2 COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES YEAR ENDED DECEMBER 31,1997 ' With Comparative Totals for Year Ended December 31,1996 CITY HALL OPEN SPACE MUNICIPAL CAPITAL CAPITAL FACILITIES CAPITAL ' IMPROVEMENT IMPROVEMENT CONSTRUCTION IMPROVEMENT REVENUES ' Taxes $ 0 $ 0 $ 2,146,957 $ 0 Licenses And Permits 0 0 0 1,789,501 Intergovernmental Revenues 0 62,725 50,000 3,113,971 , Charges For Services 0 0 0 1,920 Interest 239,385 9,869 161,462 0 Miscellaneous Revenues 0 0 12,149 22,734 , TOTAL REVENUES $ 239,385 $ 72,594 $ 2,370,568 $ 4,928,126 EXPENDITURES Current ' Security Of Persons And Property $ 0 $ 0 $ 0 $ 0 Transportation 0 0 0 5,002,884 Culture and Recreation 0 0 0 0 Capital Outlay 9,846,464 57,171 1,959,540 0 , Debt Service: Interest 8 Fiscal Charges 252,494 0 0 0 TOTAL EXPENDITURES $ 10,098,958 $ 57,171 $ 1,959,540 $ 5,002,884 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ (9,859,573) $ 15,423 $ 411,028 $ (74,758) OTHER FINANCING SOURCES(USES) ' Proceeds Of Long-Term Debt $ 14,697,744 $ 0 $ 0 $ 0 Interfund Loan Proceeds 0 0 0 0 Interfund Loan Repayments 0 0 0 0 ' Operating Transfers In 2,430,000 0 3,855,704 320,000 Operating Transfers(Out) 0 0 (2,505,000) 0 Other Financing Sources(Uses) 0 0 0 (178,215) Intergovernmental Agreements 0 0 0 0 Sale Of General Fixed Assets 0 0 6,037 2,266 TOTAL OTHER FINANCING SOURCES(USES) $ 17,127,744 $ 0 $ 1,356,741 $ 144,051 EXCESS(DEFICIENCY)OF REVENUES ' AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ 7,268,171 $ 15,423 $ 1,767,769 $ 69,293 FUND BALANCE JANUARY 1 $ 0 $ 589,054 $ 2,508,014 $ 5,350,205 ' Residual Equity Transfers In 0 0 0 0 Residual Equity Transfers Out 0 0 0 0 Prior Period Corrections 0 0 0 (4,000) ' FUND BALANCE DECEMBER 31 $ 7,268,171 $ 604,477 $ 4,275,783 $ 5,495,498 71 ' City of Renton•1997 CAFR Page 2 of 2 SENIOR SPECIAL TOTALS HOUSING ASSESSMENT CONSTRUCTION CONSTRUCTION 1997 1996 $ 0 $ 0 $ 2,146,957 $ 610,169 0 0 1,789,501 1,565,883 0 0 3,226,696 6,400,554 0 0 1,920 1,235 0 5,538 416,254 158,046 0 0 34,883 0 $ 0 $ 5,538 $ 7,616,211 $ 8,735,887 $ 0 $ 0 $ 0 $ 2,620 0 0 5,002,884 9,060,565 0 0 0 (2,537) 0 1 11,863,176 2,532,571 0 0 252,494 0 $ 0 $ 1 $ 17,118,554 $ 11,593,219 $ 0 $ 5,537 $ (9,502,343) $ (2,857,332) $ 0 $ 0 $ 14,697,744 $ 0 0 0 0 148,000 0 0 0 0 0 0 6,605,704 1,271,400 0 0 (2,505,000) (113,201) 0 0 (178,215) 0 0 0 0 0 0 0 8,303 1,238 $ 0 $ 0 $ 18,628,536 $ 1,307,437 $ 0 $ 5,537 $ 9,126,193 $ (1,549,895) $ 0 $ 124,835 $ 8,572,108 $ 9,517,003 0 0 0 620,239 0 0 0 (15,239) 0 0 (4,000) 0 $ 0 $ 130,372 $ 17,694,301 $ 8,572,108 72 City of Renton-1997 CAFR CAPITAL PROJECTS FUNDS Page 1 of 5 COMBINING STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE,BUDGET AND ACTUAL YEAR ENDED DECEMBER 31,1997,With Comparative Actual Totals for Year Ended December 31,1996 CITY HALL CAPITAL IMPROVEMENT VARIANCE FAVORABLE 1996 BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES Taxes $ 0 $ 0 $ 0 $ 0 Licenses And Permits 0 0 0 0 Intergovernmental Revenues 0 0 0 0 Charges For Services 0 0 0 0 Contributions 0 0 0 0 Interest 0 239,385 239,385 0 Miscellaneous Revenues 0 0 0 0 TOTAL REVENUES $ 0 $ 239,385 $ 239,385 $ 0 EXPENDITURES Current Security Of Persons And Property $ 0 $ 0 $ 0 $ 0 Transportation 0 0 0 0 Culture and Recreation 0 0 0 0 Capital Outlay 16,878,173 9,846,464 7,031,709 0 Debt Service: Principal Retirement 0 0 0 0 Interest&Fiscal Charges 249,571 252,494 (2,923) 0 TOTAL EXPENDITURES $ 17,127,744 $ 10,098,958 $ 7,028,786 $ 0 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ (17,127,744) $ (9,859,573) $ 7,268,171 $ 0 , OTHER FINANCING SOURCES(USES) Proceeds Of Long-Term Debt $ 14,697,744 $ 14,697,744 $ 0 $ 0 Interfund Loan Proceeds 0 0 0 0 Interfund Loan Repayments 0 0 0 0 Operating Transfers In 2,430,000 2,430,000 0 0 Operating Transfers(Out) 0 0 0 0 Other Financing Sources(Uses) 0 0 0 0 ' Intergovernmental Agreements 0 0 0 0 Sale Of General Fixed Assets 0 0 0 0 TOTAL OTHER FINANCING SOURCES(USES) $ 17,127,744 $ 17,127,744 $ 0 $ 0 ' EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ 0 $ 7,268,171 $ 7,268,171 $ 0 ' FUND BALANCE JANUARY 1 0 0 0 0 Residual Equity Transfers In 0 0 0 0 Residual Equity Transfers(Out) 0 0 0 0 ' Prior Period Corrections 0 0 0 0 FUND BALANCE DECEMBER 31 $ 0 $ 7,268,171 $ 7,268,171 $ 0 73 , City of Renton-1997 CAFR Page 2 of 5 OPEN SPACE CAPITAL IMPROVEMENT MUNICIPAL FACILITIES CONSTRUCTION VARIANCE VARIANCE FAVORABLE 1996 FAVORABLE 1996 BUDGET ACTUAL <UNFAVORABLE> ACTUAL BUDGET ACTUAL <UNFAVORABLE> ACTUAL $ 0 $ 0 $ 0 $ 0 $ 2,050,000 $ 2,146,957 $ 96,957 $ 610,169 0 0 0 0 0 0 0 0 0 62,725 62,725 1,043,748 50,000 50,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9,869 9,869 48,044 150,000 161,462 11,462 107,687 0 0 0 0 12,150 12,149 (1) 0 $ 0 $ 72,594 3 72,594 $ 1,091,792 $ 2,262,150 $ 2,370,568 $ 108,418 $ 717,856 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 2,620 0 0 0 0 0 0 0 0 0 0 0 (2,537) 0 0 0 0 564,186 57,171 507,015 1,550,999 4,244,604 1,959,540 2,285,064 956,092 0 0 0 0 0 0 0 0 0 0 0 0 26,919 0 26,919 0 $ 564,186 $ 57,171 $ 507,015 $ 1,548,462 $ 4,271,523 $ 1,959,540 $ 2,311,983 $ 958,712 $ (564,186) $ 15,423 $ 579,609 $ (456,670) $ (2,009,373) $ 411,028 $ 2,420,401 $ (240,856) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 86,500 3,855,704 3,855,704 0 333,095 0 0 0 0 (2,505,000) (2,505,000) 0 (113,201) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6,037 6,037 0 $ 0 $ 0 $ 0 $ 86,500 $ 1,350,704 $ 1,356,741 $ 6,037 $ 219,894 $ (564,186) $ 15,423 $ 579,609 $ (370,170) $ (658,669) $ 1,767,769 $ 2,426,438 $ (20,962) 564,186 589,054 24,868 959,224 2,478,091 2,508,014 29,923 1,908,737 0 0 0 0 0 0 0 620,239 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 604,477 $ 604,477 $ 589,054 $ 1,819,422 $ 4,275,783 $ 2,456,361 $ 2,508,014 74 City of Renton-1997 CAFR CAPITAL PROJECTS FUNDS Page 3 of 5 COMBINING STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE,BUDGET AND ACTUAL , YEAR ENDED DECEMBER 31,1997,With Comparative Actual Totals for Year Ended December 31,1996 CAPITAL IMPROVEMENTS ' VARIANCE FAVORABLE 1996 , BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES , Taxes $ 0 $ 0 $ 0 $ 0 Licenses And Permits 1,530,000 1,789,501 259,501 1,565,883 Intergovernmental Revenues 10,866,965 3,113,971 (7,752,994) 5,356,806 Charges For Services 1,500 1,920 420 1,235 ' Contributions 0 0 0 0 Interest 0 0 0 0 Miscellaneous Revenues 22,734 22,734 0 0 ' TOTAL REVENUES $ 12,421,199 $ 4,928,126 $ (7,493,073) $ 6,923,924 EXPENDITURES Current: Security Of Persons And Property $ 0 $ 0 $ 0 $ 0 Transportation 13,960,442 5,002,884 8,957,558 9,060,565 Culture and Recreation 0 0 0 0 ' Capital Outlay 0 0 0 0 Debt Service: Principal Retirement 0 0 0 0 Interest&Fiscal Charges 12,108 0 12,108 0 ' TOTAL EXPENDITURES $ 13,972,550 $ 5,002,884 $ 8,969,666 $ 9,060,565 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ (1,551,351) $ (74,758) $ 1,476,593 $ (2,136,641) ' OTHER FINANCING SOURCES(USES) Proceeds Of Long-Term Debt $ 0 $ 0 $ 0 $ 0 Interfund Loan Proceeds 0 0 0 0 , Interfund Loan Repayments 0 0 0 0 Operating Transfers In 570,000 320,000 (250,000) 851,805 Operating Transfers(Out) 0 0 0 0 ' Other Financing Sources(Uses) 0 (178,215) (178,215) 0 Intergovernmental Agreements 0 0 0 0 Sale Of General Fixed Assets 0 2,266 2,266 1,238 TOTAL OTHER FINANCING SOURCES(USES) $ 570,000 $ 144,051 $ (425,949) $ 853,043 , EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (981,351) $ 69,293 $ 1,050,644 $ (1,283,598) FUND BALANCE JANUARY 1 1,105,054 5,350,205 4,245,151 6,633,803 Residual Equity Transfers In 0 0 0 0 Residual Equity Transfers(Out) 0 0 0 0 ' Prior Period Corrections 0 (4,000) (4,000) 0 FUND BALANCE DECEMBER 31 $ 123,703 $ 5,415,498 $ 5,291,795 $ 5,350,205 75 , City of Renton•1997 CAFR Page 4 of 5 SENIOR HOUSING CONSTRUCTION FUND SPECIAL ASSESSMENT CONSTRUCTION FUND VARIANCE VARIANCE FAVORABLE 1996 FAVORABLE 1996 BUDGET ACTUAL <UNFAVORABLE> ACTUAL BUDGET ACTUAL <UNFAVORABLE> ACTUAL $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5,538 5,538 2,315 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 5,538 $ 5,538 $ 2,315 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 121,707 1 121,706 25,480 0 0 0 0 160,000 0 160,000 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 281,707 $ 1 $ 281,706 $ 25,480 $ 0 $ 0 $ 0 $ 0 $ (281,707) $ 5,537 $ 287,244 $ (23,165) $ 0 $ 0 $ 0 $ 0 $ 160,000 $ 0 $ (160,000) $ 0 0 0 0 0 0 0 0 148,000 0 0 0 0 0 0 0 0 �. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 160,000 $ 0 $ (160,000) $ 148,000 $ 0 $ 0 $ 0 $ 0 $ (121,707) $ 5,537 $ 127,244 $ 124,835 0 0 0 15,239 124,022 124,835 813 0 0 0 0 0 0 0 0 0 0 0 0 (15,239) 0 0 0 0 0 0 0 0 0 0 0 0 $ - 0 $ 0 $ 0 $ 0 $ 2,315 $ 130,372 $ 128,057 $ 124,835 76 City of Renton-1997 CAFR CAPITAL PROJECTS FUNDS Page 5 of 5 r COMBINING STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE,BUDGET AND ACTUAL ' YEAR ENDED DECEMBER 31,1997,With Comparative Actual Totals for Year Ended December 31,1996 TOTALS , VARIANCE FAVORABLE 1996 BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES Taxes $ 2,050,000 $ 2,146,957 $ 96,957 $ 610,169 Licenses And Permits 1,530,000 1,789,501 259,501 1,565,883 Intergovernmental Revenues 10,916,965 3,226,696 (7,690,269) 6,400,554 Charges For Services 1,500 1,920 420 1,235 Contributions 0 0 0 0 Interest 150,000 416,254 266,254 158,046 Miscellaneous Revenues 34,884 34,883 (1) 0 TOTAL REVENUES $ 14,683,349 $ 7,616,211 $ (7,067,138) $ 8,735,887 EXPENDITURES Current: Security Of Persons And Property $ 0 $ 0 $ 0 $ 2,620 Transportation 13,960,442 5,002,884 8,957,558 9,060,565 Culture and Recreation 0 0 0 (2,537) Capital Outlay 21,808,670 11,863,176 9,945,494 2,532,571 Debt Service: Principal Retirement 160,000 0 160,000 0 Interest&Fiscal Charges 288,598 252,494 36,104 0 ' TOTAL EXPENDITURES $ 36,217,710 $ 17,118,554 $ 19,099,156 $ 11,593,219 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ (21,534,361) $ (9,502,343) $ 12,032,018 $ (2,857,332) , OTHER FINANCING SOURCES(USES) Proceeds Of Long-Term Debt $ 14,857,744 $ 14,697,744 $ (160,000) $ 0 Interfund Loan Proceeds 0 0 0 148,000 Interfund Loan Repayments 0 0 0 0 Operating Transfers In 6,855,704 6,605,704 (250,000) 1,271,400 Operating Transfers(Out) (2,505,000) (2,505,000) 0 (113,201) Other Financing Sources(Uses) 0 (178,215) (178,215) 0 ' Intergovernmental Agreements 0 0 0 0 Sale Of General Fixed Assets 0 8,303 8,303 1,238 TOTAL OTHER FINANCING SOURCES(USES) $ 19,208,448 $ 18,628,536 $ (579,912) $ 1,307,437 EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (2,325,913) $ 9,126,193 $ 11,452,106 $ (1,549,895) FUND BALANCE JANUARY 1 4,271,353 8,572,108 4,300,755 9,517,003 Residual Equity Transfers In 0 0 0 620,239 Residual Equity Transfers(Out) 0 0 0 (15,239) , Prior Period Corrections 0 (4,000) (4,000) 0 FUND BALANCE DECEMBER 31 $ 1,945,440 $ 17,694,301 $ 15,748,861 $ 8,572,108 1 77 r ENTERPRISE FUNDS Enterprise funds are established for government activities that are financed and operate in a manner similar to private business. Costs of providing services to the general public are primarily financed by users fees. Waterworks Utility Fund: Accounts for the operation and capital improvement programs for the water, wastewater(sewer) and surface water (storm drainage services) within the City. Activities which are 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. Airport Fund: Provides accounting for revenues and expenses which provide administration, debt service, operation, capital improvements and maintenance of the Renton Municipal Airport and Will Rogers-Wily Post Memorial Seaplane Base, Sources of support to the fund are leases, fuel charges, investment interest and grant funding as available. Solid Waste Utility Fund: Solid waste, recycling and yard waste collection services for the City are accounted in this fund, supported entirely by service fees. Expenses include payment to the City's garbage contractor and other service charges Golf Course Fund: The City acquired the Maplewood Golf Course in 1985 and .. this fund was created to account for the operation, maintenance, debt service and capital improvements of this municipal facility. User fees provide for operation and approximately 15%of debt services. Operating transfers from the General Fund provide approximately 85%of the debt service. 78 City of Renton-1997 CAFR ENTERPRISE FUNDS Page 1 of 2 ' COMBINING BALANCE SHEET AS OF DECEMBER 31,1997 ' With Comparative Totals for December 31,1996 WATERWORKS AIRPORT SOLID WASTE UTILITY UTILITY ASSETS: Current Assets: ' Cash and Cash Equivalents $ 4,363,380 $ 1,367,879 $ 308,018 Cash With Fiscal Agent 155,880 0 0 Investments 176,393 1,483,109 0 Receivables,net of Allowance for Uncollectibles: ' Accounts 1,661,689 1,180 1,106,367 Interest on Investments 140,241 29,985 0 Notes Receivable-Current 0 0 0 Due From Other Funds 62,286 0 0 Due From Other Governmental Units 362,277 0 2,500 ' Inventory of Material and Supplies 323,743 0 0 Total Current Assets 7,245,889 2,882,153 1,416,885 Restricted Assets: Deposits 21,379 0 0 ' Revenue Bond Debt Service 4,556,422 0 0 Construction Account 3,593,622 0 0 Total Restricted Assets 8,171,423 0 0 Note Receivable-Non-Current 0 0 0 Property,Plant and Equipment: Fixed Assets(Net) 114,874,680 3,396,222 111,058 Construction In Progress 6,634,333 420,902 0 Total Property,Plant and Equipment 121,509,013 3,817,124 111,058 ' Deferred Charges and Other Assets 96,000 0 0 TOTAL ASSETS $ 137,022,325 $ 6,699,277 $ 1,527,943 LIABILITIES AND FUND EQUITY: LIABILITIES: Current Liabilities: Vouchers/Contracts Payable $ 134,706 $ 1,681 $ 517,994 Retainage Payable 65,641 0 0 Due To Other Funds 70,069 33,049 0 Interfund Loans/Advances-Current 0 0 0 ' Due To Other Governmental Units 401,168 0 0 Matured Interest Payable 155,880 0 0 Accrued Interest Payable 307,120 0 1,098 Accrued Wages Payable 18,919 2,141 353 Accrued Employee Benefits Payable 2,866 324 54 ' Accrued Taxes Payable 42,819 14,786 28,240 Deferred Revenues 76,009 36,125 0 Capital Lease-Current 0 0 0 Total Current Liabilities 1,275,197 88,106 547,739 Liabilities Payable from Restricted Assets: Deposits Payable 21,379 0 0 General Obligation Bonds Payable-Current 63,360 0 0 Revenue Bonds Payable-Current Portion 1,765,000 0 0 ' Total Liabilities Payable From Restricted Assets 1,849,739 0 0 Long Term Liabilities: General Obligation Bonds Payable 282,040 0 171,765 Unamortized Discounts on G.O.Bond (4,046) 0 (6,298) Revenue Bonds Payable 23,465,000 0 0 ' Unamortized Discounts on Revenue Bond (448,592) 0 0 Capital Leases Payable 0 0 0 Accrued Employee Leave Benefits 305,171 33,459 3,898 Interfund Loans/Advances-Non-Current 0 0 0 ' Installment Purchase Contracts 199,334 0 0 Public Works Trust Fund Loan Payable 5,067,889 0 0 Total Long Term Liabilities 28,866,796 33,459 169,365 TOTAL LIABILITIES $ 31,991,732 $ 121,565 $ 717,104 ' FUND EQUITY: Contributed Capital $ 86,222,127 $ 1,512,049 $ 0 Retained Earnings: Reserved For Debt Service 3,042,454 0 52,471 ' Unreserved 15,766,012 5,065,663 758,368 TOTAL FUND EQUITY $ 105,030 593 $ 6,577,712 $ 810,839 TOTAL LIABILITIES AND FUND EQUITY $ 137,022,325 $ 6,699,277 $ 1,527,943_ 79 ' City of Renton-1997 CAFR Page 2 of 2 TOTALS GOLF COURSE 1997 1996 $ 313,650 $ 6,352,927 $ 4,001,413 4,440 160,320 105,000 0 1,659,502 1,814,392 25,338 2,794,574 2,942,584 0 170,226 263,779 18,478 18,478 18,424 256,809 319,095 229,519 0 364,777 611,855 155,357 479,100 381,825 ' 774,072 12,318,999 10,368,791 0 21,379 20,964 456,145 5,012,567 7,843,495 m 0 3,593,622 4,788,851 456,145 8,627,568 12,653,310 86,199 86,199 104,677 9,192,260 127,574,220 118,719,771 0 7,055,235 6,301,324 9,192,260 134,629,455 125,021,095 0 96,000 112,000 $ 10,508,676 $ 155,758,221 $ 148,259,873 $ 5,356 $ 659,737 $ 770,452 8,344 73,985 98,192 12,975 116,093 179,072 52,680 52,680 57,247 0 401,168 331,311 4,440 160,320 105,000 31,500 339,718 376,510 1,687 23,100 31,072 256 3,500 4,745 6,387 92,232 78,200 0 112,134 8,707 41,492 41,492 28,666 165,117 2,076,159 2,069,174 - 74,759 96,138 70,308 319,680 383,040 422,400 155,000 1,920,000 1,810,000 549,439 2,399,178 2,302,708 1,423,020 1,876,825 2,203,100 (20,417) (30,761) (34,350) 4,555,000 28,020,000 29,940,000 (62,715) (511,307) (573,551) 82,455 82,455 62,608 38,964 381,492 330,286 0 0 52,680 0 199,334 264,560 0 5,067,889 5,322,477 6,016,307 35,085,927 37,567,810 $ 6,730,863 $ 39,561,264: $ 41,939,692 $ 5,000 $ 87,739,176 $ 81,953,879 456,145 3,551,070 3,391,230 3,316,668 24,906,711 20,975,072 3,777,813 $ 116,196,957 $ 106320,181 $ 10,508,676 $ 155,758,221 $ 148,259,873 80 City of Renton-1997 CAFR , ENTERPRISE FUNDS Page 1 of 2 , COMBINING STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND EQUITY FOR THE YEAR ENDED DECEMBER 31,1997 ' With Comparative Totals for Year Ended December 31,1996 WATERWORKS AIRPORT SOLID WASTE ' UTILITY UTILITY OPERATING REVENUES: ' Charges for Services $ 19,201,219 $ 857,122 $ 7,221,433 Other Operating Revenue 1,372,972 5,710 11,473 TOTAL OPERATING REVENUE $ 20,574,191 $ 862,832 $ 7,232,906 OPERATING EXPENSES: Operations and Maintenance $ 11,235,553 $ 281,295 $ 6,402,468 Administrative and General 1,685,029 105,173 0 ' Insurance 0 10,446 0 Taxes 1,659,593 0 945,235 Depreciation 2,638,352 175,516 53,341 ' TOTAL OPERATING EXPENSES $ 17,216,527 $ 572,430 $ 7,401,044 OPERATING INCOME(LOSS) $ 3,355,664 $ 290,402 $ (168,138) NON-OPERATING REVENUE(EXPENSE): , Interest Revenue $ 763,220 $ 140,618 $ 8,307 Other Non-operating Revenue 38,068 45 229,852 Interest Expense (1,548,178) 0 0 Arbitrage Expense (27,270) 0 0 , Amortization of Debt Discount and Expense (59,675) 0 (8,814) NON-OPERATING REVENUE NET OF EXPENSES $ (833,835) $ 140,663 $ 229,345 INCOME(L05S)BEFORE OPERATING TRANSFERS $ 2,521,829 $ 431,065 $ 61,207 , OPERATING TRANSFERS IN $ 81,657 $ 0 $ 0 OPERATING TRANSFERS OUT 0 0 0 ' NET INCOME(LOSS) $ 2,603,486 $ 431,065 $ 61,207 Depreciation Reducing Grant Contributed Capital 0 130,639 0 INCREASE(DECREASE)IN RETAINED EARNINGS $ 2,603,4$6 $ 561,704 $ 61,207 RETAINED EARNINGS,JANUARY I $ 16,139,605 $ 4,531,815 $ 749,632 ' Prior Period Corrections 65,375 0 0 RETAINED EARNINGS,JANUARY 1,RESTATED $ 16,204,980 $ 4,531,815 $ 749,632 , Residual Equity Transfers In(Out) 0 (27,856) 0 RETAINED EARNINGS,DECEMBER 31 $ 18,808,466 $ 5,065,663 $ 810,839 CONTRIBUTED CAPITAL,JANUARY 1 $ 80,312,751 $ 1,636,128 $ 0 , Capital Grants 274,541 6,560 0 Prior Period Corrections 0 0 0 Amortization on Capital Grants 0 (130,639) 0 Other Contributed Capital 5,634,835 0 0 CONTRIBUTED CAPITAL,DECEMBER 31 $ 86,222,127 $ 1;512,049 $ 0' FUND EQUITY,DECEMBER 31 $ 105,030,593 $ 6,577,712 $ 810,839 r 81 , City of Renton-1997 CAFR Page 2 of 2 TOTALS GOLF COURSE 1997 1996 $ 1,833,162 $ 29,112,936 $ 27,405,971 213,518 1,603,673 1,803,513 $ 2,046,680 $ 30,716,609 $ 29,209,484 $ 1,261,270 $ 19,180,586 $ 18,161,066 0 1,790,202 1,857,695 0 10,446 11,174 9,579 2,614,407 2,512,941 242,934 3,110,143 2,902,124 $ 1,513,783 $ '26,705,784 $ 25,445,000 $ 532,897 $' 4,010,825 $ 3,764,484 $ 43,830 $ 955,975 $ 976,320 30,956 298,921 115,357 (381,737) (1,929,915) (2,053,892) (1,241) (28,511) (8,585) (368) (68,857) (76,031) $ , (308,560) $;, (772,387) $ (1,046,831) $ 224,337 $ 3,238,438 $ 2,717,653 $ 603,226 $ 684,883 $ 364,717 0 0 0 $ 827,563 $ 3,923,321 $' 3,082,370 0 130,639 130,760 $ 827,563 $ 4,053,960 $ 3,213,130; $ 2,945,250 $ 24,366,302 $ 21,153,172 0 65,375 0 $ 2,945,250 $'° 24,431,677 $ 21,153,172 0 (27,856) 0 $ 3,772,813 $ 28,457,781 $ 24,366,302 $ 5,000 $ 81,953,879 $ 76,087,270 0 281,101 1,129,063 0 0 0 0 (130,639) (130,760) 0 5,634,835 4,868,306 $ 5,000 $ 87,739,176 $ 81,953,879 $ 3,777,813 $ 1,16,196,957 $ 106,320,181 82 City of Renton-1997 CAFR , ENTERPRISE FUNDS Page 1 of 4 , COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31,1997 ' With Comparative Totals for Year Ended December 31,1996 WATERWORKS AIRPORT SOLID WASTE UTILITY CASH FLOWS FROM OPERATING ACTIVITIES: Cash Received From Customers $ 19,138,766 $ 958,112 $ 7,067,242 Cash Received From Other Funds for Services 237,903 0 0 Cash Paid to Suppliers for Goods and Services (7,988,677) (172,478) (6,263,179) Cash Paid to Other Funds for Goods and Services (2,700,490) (80,126) (264,815) Cash Paid to Employees (2,667,253) (182,600) (107,607) Cash Paid for City Utility Taxes (1,155,933) 0 (424,453) Cash Paid for Retirees 0 0 0 Interest Revenue 0 0 0 Other Operating Receipts 1,372,972 5,710 11,473 Other Non-Operating Receipts 0 45 822 ' Prior Period Correction 0 0 0 NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES $ 6,237,288 $ 528,663 $ 19,483 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: ' Proceeds From Interfund Loans $ 0 $ 0 $ 0 Operating Grants Received 0 0 81,943 Operating Transfers From Other Funds 81,657 0 0 Operating Transfers To Other Funds 0 (27,856) 0 Repayments on Interfund Loans 0 0 0 NET CASH PROVIDED(USED)BY NONCAPITAL FINANCING ACTIVITIES $ 81,657 $ (27,856) $ 81,943 CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: , Proceeds From Sale of Bonds $ 0 $ 0 $ 3,999 Payments on Bond Issuance and Registration Fees (2,632) 0 0 Proceeds From State Long-Term Loans 84,240 0 0 Acquisition and Construction of Capital Assets (8,362,824) (384,982) 0 ' Payments Received from Intergovernmental Loan 75,748 0 0 Capital Contributions 1,672,814 0 0 Capital Grants 274,541 6,560 0 ' Principal Payments on Bonds (1,721,600) 0 0 Interest Payments on Bonds (1,497,947) 0 (4,655) Interest Payments on State Long-Term Loans (71,233) 0 0 NET CASH PROVIDED(USED)BY CAPITAL FINANCING ACTIVITIES $ (9,548,893) $ (378,422) $ (656) ' CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds From Sale of Investments $ 7,848,629 $ 900,000 $ 0 Payments for Investments (7,805,630) (783,109) 0 , Interest on Investments 836,681 135,868 8,307 NET CASH PROVIDED(USED)BY INVESTING ACTIVITIES $ 879,680 $ 252,759 ` $ 8,307 NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS $ (2,350,268) $ 375,144 $ 109,077 CASH AND CASH EQUIVALENTS,JANUARY 1 $ 14,885,071 $ 992,735 $ 198,941 CASH AND CASH EQUIVALENTS,DECEMBER 31 $ 12,534,803 $ 1,367,879 $ 308,018 CASH AT THE END OF THE YEAR CONSISTS OF: Cash and Cash Equivalents $ 4,363,380 $ 1,367,879 $ 308,018 Cash Restricted for. Deposits 21,379 0 0 Revenue Bond Debt Service 4,556,422 0 0 Construction Account 3,593,622 0 0 TOTAL CASH AT THE END OF THE YEAR $ 12,534,803 $ 1,367,879 $ 308,018 83 City of Renton-1997 CAFR Page 2 of 4 TOTALS GOLF COURSE 1997 1996 $ 1,913,593 $ 29,077,713 $ 27,350,163 0 237,903 255,218 (462,974) (14,887,308) (14,561,622) (270,687) (3,316,118) (3,199,246) (581,744) (3,539,204) (3,270,136) 0 (1,580,386) (1,518,244) 0 0 0 0 0 0 213,518 1,603,673 1,777,719 (1,870) (1,003) 4,576 0 0 0 $ 809,836 $ 7,595,270 $ 6,838,428 $ 0 $ 0 $ 0 0 81,943 67,218 503,681 585,338 352,832 0 (27,856) 0 (63,637) (63,637) (69,404) $ 440,044 $ 575,788 $ 350,646 $ 0 $ 3,999 $ 0 0 (2,632) (2,889) 0 84,240 1,184,189 (220,235) (8,968,041) (6,897,488) 0 75,748 0 0 1,672,814 1,699,079 74,724 355,825 1,132,273 (489,466) (2,211,066) (2,076,391) (466,914) (1,969,516) (2,015,111) 0 (71,233) (52,016) $ (1,101,891) $ (11,029,862) $ (7,028,354) $ 0 $ 8,748,629 $ 12,056,444 0 (8,588,739) (12,323,732) 43,830 1,024,686 1,191,808 $ 43,830 $ 1,184,576 $ 924,520 $ 191,819 $ (1,674,228) $ 1,085,240 $ 577,976 $ 16,654,723 $ 15,569,483 $ 769,795 $ 14,980,495 $ 16,654,723 $ 313,650 $ 6,352,927 $ 4,001,413 0 21,379 20,964 456,145 5,012,567 7,843,495 0 3,593,622 4,788,851 $ 769,795 $ 14,980,495 $ 16,654,723 84 City of Renton-1997 CAFR ' ENTERPRISE FUNDS Page 3 of 4 COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31,1997 , With Comparative Totals for Year Ended December 31,1996 WATERWORKS AIRPORT SOLID WASTE UTILITY RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES: Operating Income(Loss) $ 3,355,664 $ 290,402 $ (168,138) Adjustments to Reconcile Operating Income(Loss) ' to Net Cash Provided(Used)By Operating Activities: Depreciation and Amortization of Deferred Charge $ 2,654,352 $ 175,516 $ 53,341 Other Non-Operating Revenue 38,068 45 144,566 , (Increase)Decrease in Accounts Receivable 165,206 60,996 (145,463) (Increase)Decrease in Due From Other Funds/Governmental (36,551) 0 24,677 (Increase)Decrease in Inventory/Prepaid Items (16,209) 0 0 Increase(Decrease)in Vouchers/Retainage Payable 36,091 (22,537) 107,656 ' Increase(Decrease)in Due to Other Funds/Governmental (27,071) (22,931) 0 Increase(Decrease)in Payables/Other Short Term Liabilities (39,906) 9,290 2,883 Increase(Decrease)in Customer Deposits 415 0 0 ' Increase(Decrease)in Deferred Revenues 72,089 31,338 0 Increase(Decrease)in Accrued Employee Leave Benefits 35,140 6,544 (39) Total Adjustments $ 2,881,624 $ 238,261 $ 187,621 NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES $ 6,237,288 $ 528,663 $ 19,483 , SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES: Fixed Assets Contributed By Developers $ 4,155,516 $ 0 $ 0 TOTAL NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES $ 4,155,516 $ 0 $ 0 85 City of Renton-1997 CAFR Page 4 of 4 TOTALS GOLF COURSE 1997 1996 $ 532,897 $ 4,010,825 $ 3,764,484 $ 242,934 $ 3,126,143 $ 2,909,327 163,999 346,678 58,864 24,843 105,582 261,702 (99,545) (111,419) (27,026) (81,066) (97,275) (41,340) 8,146 129,356 (57,665) (12,977) (62,979) (30,019) (4,371) (32,104) (25,302) 25,415 25,830 42,950 0 103,427 (54,355) 9,561 51,206 36,808 $ 276,939 $ 3,584,445 $ 3,073,944 $ 809,836 $ 7,595,270 $ 6,838,428 $ 0 $ 4,155,516 $ 3,169,227 $ 0 $ 4,155,516 $ 3,169,227 86 1 1 1 � y 1 � O � INTERNAL SERVICE FUNDS �- internal service funds are used to account for the financing of goods and services provided by one department or agency to other departments or agencies of the City. .. 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 which are charged to each user department, Insurance Fund: Provides accounting for self-insurance services to all City departments, including provision for losses on property, liability, worker's compensation, unemployment compensation and a health care program. Expenses are paid by the Insurance Fund and rates are charged to departments based on use and/or coverage requirements. 88 City of Renton•1997 CAFR INTERNAL SERVICE FUNDS Page 1 of 1 ' COMBINING BALANCE SHEET AS OF DECEMBER 31,1997 ' With Comparative Totals for December 31,1996 TOTALS EQUIPMENT INSURANCE RENTAL 1997 1996 ASSETS: t Current Assets: Cash and Cash Equivalents $ 852,628 $ 2,543,991 $ 3,396,619 $ 2,512,706 t Cash With Fiscal Agent 26,300 0 26,300 0 Investments 802,148 1,705,501 2,507,649 2,414,002 Receivables: Accounts 1,547 3,521 5,068 31,668 ' Interest on Investments 8,955 21,469 30,424 48,386 Due From Other Funds 0 49,456 49,456 104,230 Interfund Loans/Advances-Current 0 0 0 7,294 Due From Other Governmental Units 0 0 0 112,308 ' Inventory of Material and Supplies 52,591 0 52,591 40,999 Prepaid Items 0 10,018 10,018 8,641 Total Current Assets 1,744,169 4,333,956 6,078,125 5,280,234 , Property,Plant and Equipment: Fixed Assets(Net) 2,888,399 2,397 2,890,796 2,707,276 Total Property,Plant and Equipment 2,888,399 2,397 2,890,796 2,707,276 Interfund Loans/Advances-Non-Current 0 0 0 0 TOTAL ASSETS $ 4,632,568 $ 4,336,353 $ 8,968,921 $ 7,987,510 LIABILITIES AND FUND EQUITY: LIABILITIES: , Current Liabilities: Vouchers Payable $ 14,571 $ 18,768 $ 33,339 $ 54,306 Retainage Payable 0 0 0 0 ' Due To Other Funds 0 15,300 15,300 0 Matured Interest Payable 26,300 0 26,300 0 Accrued Interest Payable 979 0 979 10,262 Accrued Wages Payable 4,439 914 5,353 2,489 ' Accrued Employee Benefits Payable 672 138 810 380 Accrued Taxes Payable 6 0 6 0 Other Short Term Liabilities 0 0 0 8 General Obligation Bonds Payable-Current 30,960 0 30,960 215,870 Total Current Liabilities 77,927 35,120 113,047 283,315 Long Term Liabilities: , General Obligation Bonds Payable 1,270,978 0 1,270,978 1,107,090 Unamortized Discounts on G.O.Bond (48,659) 0 (48,659) (20,740) Deferred Revenues 0 41,185 41,185 104,230 Accrued Employee Leave Benefits 29,338 3,751 33,089 24,331 ' Claims Incurred But Not Reported 0 1,171,475 1,171,475 1,231,210 Arbitrage Rebate Tax Payable 0 0 0 0 Total Long Term Liabilities 1,251,657 1,216,411 2,468,068 2,446,121 t 'TOTAL LIABILITIES $ 1,329,584 $ 1,251,531 $ 2,581,115 $ 2,729,436 FUND EQUITY: Contributed Capital $ 1,054,934 $ 0 $ 1,054,934 $ 1,054,934 t Reserved 0 0 0 0 Unreserved 2,248,050 3,084,822 5,332,872 4,203,140 TOTAL FUND EQUITY $ 3,302,984 $ 3,084,822 $ 6,387,806 $ 5,258,074 TOTAL LIABILITIES AND FUND EQUITY $ 4,632,568 $ 4,336,353 $ 8,968,921 $ 7,987,510 ' 89 ' City of Renton-1997 CAFR INTERNAL SERVICE FUNDS Page 1 of 1 COMBINING STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND EQUITY FOR THE YEAR ENDED DECEMBER 31,1997 With Comparative Totals for Year Ended December 31,1996 TOTALS EQUIPMENT INSURANCE RENTAL 1997 1996 OPERATING REVENUES: Charges for Services $ 2,014,780 $ 4,910,180 $ 6,924,960 $ 6,333,341 Other Operating Revenue 0 27,087 27,087 102,042 TOTAL OPERATING REVENUE $ 2,014,780 $ 4,937,267 $ 6;952,047 $ 6,435,383 OPERATING EXPENSES: Operations and Maintenance $ 1,166,512 $ 102,412 $ 1,268,924 $ 973,063 Benefit Payments 0 4,027,342 4,027,342 3,797,733 Professional Services 0 272,910 272,910 232,372 Administrative and General 289,776 162,474 452,250 335,811 Insurance 0 385,090 385,090 375,689 Depreciation 442,071 1,798 443,869 393,092 TOTAL OPERATING EXPENSES $ 1,898,359 $ 4,952,026 $ 6,850,385 $ 6,107,760 OPERATING INCOME(LOSS) $ 116,421 $ (14,759) $ 101,662 $ 327,623 NON-OPERATING REVENUE(EXPENSE): Interest Revenue $ 64,763 $ 173,486 $ 238,249 $ 312,440 Gain(Loss)on Sale of Assets - 27,486 0 27,486 21,940 Other Non-operating Revenue(Expense) 8,034 281,773 289,807 425,645 Interest Expense (16,349) 0 (16,349) (77,574) Arbitrage Expense (1,826) 0 (1,826) (187) Amortization of Debt Discount and Expense (25,153) 0 (25,153) (2,448) NON-OPERATINGREVENUE NET OF EXPENSES $ 56,955 $ 455,259 '$ 512,214 $ 679,816 INCOME(LOSS)BEFORE OPERATING TRANSFERS $ 173;376 $ 440,500 $ 613,876 $ 1,007;439 OPERATING TRANSFERS IN $ 488,000 $ 0 $ 488,000 $ 278,618 OPERATING TRANSFERS OUT 0 0 0 0 NET INCOME(LOSS) $ 661,376 $ 440,500, $ 1,101,676 $ 11286,057. RETAINED EARNINGS,JANUARY 1 $ 1,558,818 $ 2,644,322 $ 4,203,140 $ 2,983,839 Residual Equity Transfers In(Out) 27,856 0 27,856 (66,756) RETAINED EARNINGS,DECEMBER 31 $ 2,248,050 $ 3,084,822 $ 5,332,872'' $ 4,203,140 CONTRIBUTED CAPITAL,JANUARY 1 S 1,054,934 $ 0 $ 1,054,934 $ 1,048,674 Other Contributed Capital 0 0 0 6,260 CONTRIBUTED CAPITAL,DECEMBER 31 $ 1,054,934 $ 0 $ 1,054,934 $ 1,054,934 FUND EQUITY,DECEMBER 31 $ 3,302,984 S 3,084,822 $ 6,387,806 $ 5,258,074 90 City of Renton-1997 CAFR INTERNAL SERVICE FUNDS Page 1 of 1 COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31,1997 With Comparative Totals for Year Ended December 31,1996 TOTALS EQUIPMENT INSURANCE RENTAL 1997 1996 CASH FLOWS FROM OPERATING ACTIVITIES: Cash Received From Other funds for Goods and Services $ 2,033,996 $ 4,913,528 $ 6,947,524 $ 6,313,926 Cash Paid to Suppliers for Goods and Services (779,506) (4,755,873) (5,535,379) (4,844,896) Cash Paid to Other Funds for Goods and Services (280,222) (169,498) (449,720) (488,794) Cash Paid to Employees (398,141) (94,730) (492,871) (355,193) Other Operating Receipts 0 23,929 23,929 97,401 ' Other Non-Operating Receipts 624 392,369 392,993 209,107 NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES $ 576,751 $ 309,725 $ 886,476 $ 931,551 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating Transfers From Other Funds $ 488,000 $ 0 $ 488,000 $ 278,618 ' Operating Transfers To Other Funds 0 0 0 0 Repayments on Interfund Loans 0 7,294 7,294 11,763 NET CASH PROVIDED(USED)BY NONCAPITAL FINANCING ACTIVITIES $ 488,000 $ 7,294 $ 495,294 $ 290,381 ' CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: Proceeds From Sale of Bonds $ 24,871 $ 0 $ 24,871 $ 0 Payments on Bond Issuance and Registration Fees 0 0 0 0 Proceeds From Sale of Equipment 27,486 0 27,486 21,940 ' Acquisition and Construction of Capital Assets (679,303) 0 (679,303) (1,254,519) Capital Grants 0 13,022 13,022 115,211 Principal Payments on Bonds (55,970) 0 (55,970) (206,095) Interest Payments on Bonds (18,539) 0 (18,539) (79,257) Residual Equity Transfer-Out 27,856 0 27,856 (66,756) NET CASH PROVIDED(USED)BY CAPITAL FINANCING ACTIVITIES $ (673,599) $ 13,022 $ (660,577) $ (1,469,476) CASH FLOWS FROM INVESTING ACTIVITIES: ' Proceeds From Sale of Investments $ 550,001 $ 2,056,049 $ 2,606,050 $ 2,827,612 Payments for Investments (694,102) (2,005,595) (2,699,697) (2,916,636) Interest on Investments 68,395 187,972 256,367 391,210 ' NET CASH PROVIDED(USED)BY INVESTING ACTIVITIES $ (75,706) $ 238,426 $ 162,720 $ 302,186 NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS $ 315,446 $ 568,467 $ 883,913 $ 54,642 CASH AND CASH EQUIVALENTS,JANUARY 1 $ 537,182 $ 1,975;524 '$ 2,512,706 $ 2,458,064 CASH AND CASH EQUIVALENTS,DECEMBER 31 $ 852,628 $ 2,543,991 $ 3,396,619 $ 2,512,706 , CASH AT THE END OF THE YEAR CONSISTS OF: Cash and Cash Equivalents $ 852,628 $ 2,543,991 $ 3,396,619 $ 2,512,706 TOTAL CASH AT THE END OF THE YEAR $ 852,628 $ 2,543,991 $ 3,396,619 $ 2,512,7061: RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES: Operating Income(Loss) $ 116,421 $ (14,759) $ 101,662 $ 327,623 Adjustments to Reconcile Operating Income(Loss) ' to Net Cash Provided(Used)By Operating Activities: Depreciation 442,071 1,798 443,869 393,092 Other Non-Operating Revenue 8,034 198,255 206,289 414,654 , (Increase)Decrease in Accounts Receivable 19,218 7,382 26,600 (21,779) (Increase)Decrease in Due From Other Funds/Governmental 0 174,377 174,377 (206,998) (Increase)Decrease in Inventory/Prepaid Items (11,592) (1,377) (12,969) (2,777) Increase(Decrease)in Vouchers Payable (8,793) (12,174) (20,967) (60,434) Increase(Decrease)in Due to Other Funds/Governmental 0 15,300 15,300 0 Increase(Decrease)in Payables/Other Short Term Liabilities 2,920 372 3,292 (2,324) Increase(Decrease)in Accrued Employee Leave Benefits 8,472 286 8,758 3,334 Increase(Decrease)in Claims Incurred But Not Reported 0 (59,735) (59,735) 87,160 Total Adjustments $ 460,330 $ 324,484 $ 784,814 $ 603,928 NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES $ 576,751 $ 309,725 $ 886,476 $ 931,551 SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES: Asset Trade-In S 0 S 0 $ 0 t 29,755 TOTAL NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES $ 0 $ 0 6 0 S 29,755 91 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. These funds are classified as Pension �. Trust, Expendable Trust and Agency Funds, PENSION TRUST FUNDS Firemen's Pension Fund: Accounts for the payment of administrative costs and benefits for retired fire fighters(and beneficiaries)who were employed prior to March 1, 1970. Primary revenue sources are general property tax allocations in accordance with actuarial recommendations, fire insurance premium tax and investment interest. �. AGENCY FUNDS Special Deposit Fund: Established for the purpose of holding or retaining cash deposits or other securities pending fulfillment of certain conditions and/or �- requirements by the depositor. Rebates are made when all obligations have been met and only upon authorization from the transmitting department. Advance Travel Expense Revolving Fund: Established to provide advance payments of travel expense to elected or appointed officials or employees of the City of Renton Deferred Compensation Fund: New fund established during 1986 to account for the Deferred Compensation plan assets and liabilities. r 92 City of Renton-1997 CAFR W FIDUCIARY FUNDS Page 1 of 2 ' COMBINING BALANCE SHEET AS OF DECEMBER 31,1997 PENSION , With Comparative Totals for December 31,1996 TRUST AGENCY FUNDS PENSION SPECIAL ADVANCE FLE DEFERRED TRUST DEPOSIT TRAVEL BE COMPENSATION ASSETS: , Cash and Cash Equivalents $ 589,648 $ 104,829 $ 4,000 $ 0 Deferred Compensation Plan Assets 0 0 0 11,599,243 Investments 5,498,704 0 0 0 ' Receivables: Interest on Investments 94,522 0 0 0 Interfund Loans/Advances-Current-Note 5 52,680 0 0 0 Interfund Loans/Advances-Non-Current-Note 5 0 0 0 0 , TOTAL ASSETS $ 6,235,554 $ 104,829 `'$ 4,000 $ 11,599,243 LIABILITIES AND FUND EQUITY: LIABILITIES: , Vouchers Payable $ 0 $ 0 $ 0 $ 0 Deposits Payable 0 104,829 0 0 Deferred Compensation Payable 0 0 0 11,599,243 Interfund Loans/Advances-Non-Current 0 0 4,000 0 ' TOTAL LIABILITIES $ 0 $ 104,829 $ 4,000 $ 11,599,243 FUND EQUITY: Reserved For Pension Obligation $ 6,642,979 $ 0 $ 0 $ 0 , Unreserved-Undesignated (407,425) 0 0 0 TOTAL FUND EQUITY $ 6,235,554 $ 0 $ 0 $ 0 TOTAL LIABILITIES AND FUND EQUITY $ 6,235,554 $ 104,829 $ 4,000 $ 11,599,243 93 ' City of Renton-1997 CAFR Page 2 of 2 TOTALS 1997 1996 $ 698,477 $ 504,441 11,599,243 8,713,576 5,498,704 3,244,696 94,522 103,039 52,680 49,953 0 52,680 $ 17,943,626 $ 12,668,385 $ 0 $ 36 104,829 171,216 11,599,243 8,713,576 4,000 4,000 $ 11,708,072 $ 8,888,828 $ 6,642,979 $ 8,083,000 (407,425) (4,303,443) $ 6,235,554 $ 3,779,557 $ 17,943,626 $ 12,668,385 94 City of Renton-1997 CAFR FIREMEN'S PENSION TRUST FUND Page 1 of 1 COMPARATIVE STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND EQUITY FOR THE YEAR ENDED DECEMBER 31,1997 ' With Comparative Totals for Year Ended December 31,1996 1997 1996 OPERATING REVENUES: ' Fire Insurance Premiums $ 69,305 $ 81,721 Property Taxes 161,000 297,000 Interest Revenue 2,530,975 364,054 ' TOTAL OPERATING REVENUE $ 2,761,280 $ 742,775 OPERATING EXPENSES: , Benefit Payments $ 294,403 $ 293,934 Administrative and General 10,880 4,199 TOTAL OPERATING EXPENSES $ 305,283 $ 298,133 , NET INCOME(LOSS) $ 2,455,997 $ 444,642 RETAINED EARNINGS,JANUARY 1 $ 3,779,557 $ 3,334,915 , RETAINED EARNINGS,DECEMBER 31 $ 6,235,554 $ 3,779,557 95 City of Renton-1997 CAFR COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Page 1 of 1 ALL AGENCY FUNDS YEAR ENDED DECEMBER 31, 1997 BALANCE BALANCE 1/01/97 ADDITIONS DEDUCTIONS 12/31/97 SPECIAL DEPOSIT FUND ASSETS Cash and Cash Equivalents $ 171,216 $ 376,622 $ 443,009 $ 104,829 Due From Other Funds 0 0 0 0 TOTAL ASSETS $ 171,216 $ 376,622 $ 443,009 $ 104,829- LIABILITIES 04829LIABILITIES Vouchers Payable $ 0 $ 375,534 $ 375,534 $ 0 Deposits Payable 171,216 376,622 443,009 104,829 TOTAL LIABILITIES $ 171,216 $ 752,156 $ 818,543 $ 104,829 ADVANCE TRAVEL FUND ASSETS Cash and Cash Equivalents $ 4,000 $ 0 $ 0 $ 4,000 Accounts Receivable 0 0 0 0 TOTAL ASSETS $ 4,000 $ 0 $ 0 $ 4,000 LIABILITIES Vouchers Payable $ 0 $ 0 $ 0 $ 0 Advances From Other Funds _ 4,000 0 0 4,000 TOTAL LIABILITIES $ 4,000 $ 0 $ 0 $ 4,000 DEFERRED COMPENSATION FUND ASSETS Deferred Compensation Plan Assets $ 8,713 576 $ 2,885,667 $ 0 $ 11,599,243 TOTAL ASSETS $ 8,713,576 $ 2,885,667 $ 0 $ 11,599,243 LIABILITIES Deferred Compensation Payable $ 8,713,576 $ 2,885,667 $ 0 $ 11,599,243 TOTAL LIABILITIES $ 8,713,576 $ 2,885,667 $ 0 $ 11,599,243 TOTAL-ALL AGENCY FUNDS ASSETS Cash and Cash Equivalents $ 175,216 $ 376,622 $ 443,009 $ 108,829 Deferred Compensation Plan Assets 8,713,576 2,885,667 0 11,599,243 Due From Other Funds 0 0 0 0 TOTAL ASSETS $ 8,888,792 $ 3,262,289 $ 443,009 $ 11,708,072 LIABILITIES Vouchers Payable $ 0 $ 375,534 $ 375,534 $ 0 Deposits Payable 171,216 376,622 443,009 104,829 Deferred Compensation Payable 8,713,576 2,885,667 0 11,599,243 Advances From Other Funds 4,000 0 0 4,000 TOTAL LIABILITIES $ 8,888,792 $ 3,637,823 $ 818,543 $ 11,708,072 96 1 i GENERAL FIXED ASSETS ACCOUNT GROUP The General Fixed Assets Account Group is self-balancing and accounts for all the fixed assets of the City other than those recorded in the enterprise and internal service funds; or infrastructure assets which are considered public property. Infrastructure includes items such as roads, bridges, curbs and gutters,streets and sidewalks,drainage systems and street lighting systems. r ' 98 City of Renton-1997 CAFR ' GENERAL FIXED ASSETS ACCOUNT GROUP Page 1 of 1 ' COMPARATIVE BALANCE SHEET AS OF DECEMBER 31,1997 ' With Comparative Totals for December 31,1996 1997 1996 ASSETS: Investment in Joint Venture $ 1,498,995 $ 1,241,633 Fixed Assets(Net) 80,482,862 64,566,720 , Construction In Progress 15,296,531 6,572,720 TOTAL ASSETS $ 97,278,388 $ 72,381,073 Other Credits: , Investments in General Fixed Assets $ 97,278,388 $ 72,381,073 TOTAL OTHER CREDITS $ 97,278,388 $ 72,381,073 1 t 99 t City of Renton-1997 CAFR SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE Page 1 of 1 DECEMBER 31, 1997 GENERAL FIXED ASSETS: Land $ 21,912,232 Buildings 34,124,048 Improvements Other Than Buildings 15,698,128 Machinery and Equipment 8,748,454 Construction Work in Progress 15,296,531 Joint Venture 1,498,995 TOTAL GENERAL FIXED ASSETS $ 97,278,388 INVESTMENT IN GENERAL FIXED ASSETS FROM: General Obligation Bonds $ 31,650,878 Federal Grants 6,602,142 State Grants 2,481,859 County Grants 11,189,708 General Revenues 42,828,330 Donations 2,525,471 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $` 97,278,388 100 City of Renton-1997 CAFR ' SCHEDULE OF GENERAL FIXED ASSETS Page 1 of 1 BY FUNCTION AND ACTIVITY AS OF DECEMBER 31,1997 t IMPROVEMENTS MACHINERY CONSTRUCTION ' OTHER THAN AND JOINT WORK IN FUNCTION TOTAL LAND BUILDINGS BUILDINGS EQUIPMENT VENTURE PROGRESS ' General Govemment $ 27,446,651 $ 1,376,171 $ 13,422,990 $ 284,155 $ 2,486,154 $ 0 $ 9,877,181 , Security of Persons/Property 10,044,562 261,249 4,115,092 247,495 3,921,731 1,498,995 0 Physical Environment 3,937,266 0 2,751,874 743,383 442,009 0 0 Transportation 1,362,551 759,563 118,218 0 484,770 0 0 ' Economic Environment 2,095,152 472,016 1,294,221 9,702 317,592 0 1,621 Culture and Recreation 52,392,206 19,043,233 12,421,653 14,413,393 1,096,198 0 5,417,729 TOTAL GENERAL FIXED ASSETS $ 97,278,388 $ 21,912,232 $ 34,124,048 $ 15,698,128 $ 8,748,454 $ 1,498,995 $ 15,296,531 , SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY ' YEAR ENDED DECEMBER 31,1997 GENERAL GENERAL FIXED ASSETS FIXED ASSETS FUNCTION 1/01197 INCREASES DECREASES 12/31/97 General Government $ 7,547,446 $ 20,104,590 $ 203,783 $ 27,448,253 Security of Persons/Property 6,935,804 4,292,877 1,186,844 10,041,837 Physical Environment 3,934,120 28,686 35,159 3,927,647 Transportation 1,291,020 114,713 33,830 1,371,903 Economic Environment 2,088,024 23,804 25,123 2,086,705 Culture and Recreation 50,584,660 2,101,758 284,375 52,402,043 TOTAL GENERAL FIXED ASSETS $ 72,381,074 $ 26,666,428 $ 1,769,114 $ 97,278,388 101 GENERAL LONG-TERM DEBT ACCOUNT GROUP The General Long-Term Debt Account group is self-balancing and is used to account for unmatured principal on the General Obligation Long-Term Debt of the City of Renton, including General Obligation Bonds (refunded issues are -., excluded), installment contracts, applicable accrued employee leave benefits and special assessments. This indebtedness is backed by the full faith and credit of the City of Renton. a.. �s w� 102 City of Renton-1997 CAFR GENERAL LONG TERM DEBT ACCOUNT GROUP Page 1 of 1 , COMPARATIVE BALANCE SHEET DECEMBER 31,1997 With Comparative Totals for December 31,1996 r 1997 1996 ASSETS: , Available in Debt Service 8 Capital Project Funds $ 3,790,030 $ 3,767,056 Amount To Be Provided Long Term Debt Retirement 28,295,110 15,359,839 r TOTALASSETS $ 32,085,140 $ 19,126,895 LIABILITIES: General Obligation Bonds Payable $ 26,546,105 $ 13,344,877 ' Special Assessment Bonds Payable 1,835,000 2,456,000 Accrued Employee Leave Benefits 3,690,674 3,236,410 Installment Purchase Contracts 13,361 89,608 Arbitrage Rebate Tax Payable 0 0 TOTAL LIABILITIES $ 32,085,140 $ 19,126,895 r r r r I r r r r r r 103 r t 1997 Annual Financial Report ' Statistical Section 1 1 1 ' 104 City o/Renton-1997 CAFR Page 1 of 2 TABLE 1: GENERAL GOVERNMENT REVENUES AND EXPENDITURES BY FUNCTION, , INCLUDING CHANGES IN FUND BALANCES- LAST TEN FISCAL YEARS, FOR GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS Ten Year Annual General Governmental Revenue Trends M $60 ----- --- -- 54.1 ' I 51.7 I 48.4 $50 43.2 42.6 0 37.4 $40 � S 28.1 29.7 f $30 --- — t D $20 — --- --- — a r s $0 "T--_T 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 DESCRIPTION 1988 1989 1990 1991 ' REVENUES Taxes $ 19,911,366 $ 21,587,371 $ 24,788,886 $ 27,169,161 Licenses and Permits 717,366 691,646 853,258 1,156,779 Intergovernmental Revenues 2,363,848 2,276,308 3,083,320 2,948,562 Charges for Services 530,318 1,277,780 1,290,486 2,099,067 .r Fines and Forfeits 653,326 650,059 742,446 803,176 Interfund Revenues 0 0 0 0 Miscellaneous 3,968,222 3,211,659 2,808,531 3,232,891 TOTAL REVENUES $ 28,144,446 $ 29,694,823 $ 33,566,927 $ 37,409,636 ,W EXPENDITURES General Government $ 3,896,716 $ 4,548,894 $ 5,658,870 $ 5,045,540 Security of Persons and Property 9,448,293 10,414,800 11,313,885 12,324,533 Physical Environment 970,075 990,521 790,466 976,822 Transportation 3,352,152 3,294,786 3,387,188 2,819,625 Economic Environment 1,480,498 2,641,202 3,097,543 3,176,411 Mental and Physical Health 202,528 8,485 8,892 10,601 Culture and Recreation 2,764,356 3,254,427 3,573,006 4,026,495 a" Capital Outlay 427,639 607,810 1,342,056 541,075 Debt Service 3,952,989 4,678,024 4,303,048 4,270,821 TOTAL EXPENDITURES _ $ 26,495,246 $ 30,438,949 '$ 33,474,954 '',$ 33,191,923'. Other Increases(Decreases) (1,162,606) (154,777) 213,592 (1,094,487) Transfer In/Out,Prior Period Correction 0 0 0 0 ' FUND BALANCE,JANUARY 1 7,164,865 6,657,894 5,758,991 6,064,556 FUND BALANCE,DECEMBER 31 7,651,459 $ 5,758,991 6,064,556 ""9,187,782 , Source: City of Renton Finance Department. 105 ' City of Renton•1997 CAFR i Page 2 of 2 Ten Year Annual General Governmental Ending Fund Balance Trends M $25 — — -- -- — � i I 1 19.9 i $20 — -- 17.6 18.3 0 n 15.9 s 14.6 ' $15 12.0 0 f 9.2 D $10 7.7 1 0 5.8 1 6.1 I 1 $5 a r s 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 ' 1992 1993 1994 1995 1996 1997 ' $ 32,869,130 $ 31,204,165 $ 30,785,983 $ 33,970,167 $ 36,226,318 $ 37,903,857 1,258,803 1,145,967 1,310,570 1,236,046 1,569,007 2,145,849 2,892,682 4,297,932 4,998,676 4,343,249 4,044,611 4,164,921 1,610,795 1,437,069 1,543,902 4,818,352 5,344,029 5,546,295 884,692 881,016 1,107,779 998,553 958,082 733,561 ' 0 0 0 0 0 0 3,684,479 2,249,836 2,835,811 3,080,883 3,513,802 3,601,057 $ 43,200,581 $ 41,215,985 $ -42,582,721 $ 48;447,250 $ 151,655,849 $ „54,095,540 ' $ 5,607,839 $ 5,258,009 $ 5,998,922 $ 7,807,624 $ 8,420,834 $ 8,675,215 13,551,649 15,654,019 17,272,774 17,187,719 18,344,175 19,249,622 1,157,112 1,163,369 999,985 1,520,374 1,759,571 1,708,461 ' 3,074,076 2,937,977 3,422,909 4,947,622 4,509,833 4,896,235 2,893,077 3,155,164 3,524,258 3,606,022 3,022,503 3,414,034 229,013 8,983 10,755 7,843 5,746 7,570 4,291,090 4,603,052 4,946,035 5,130,721 5,429,238 5,592,278 ' 4,793,884 549,412 547,281 494,585 2,302,888 3,496,515 3,947,606 3,554,238 4,289,678 3,347,293 3,933,368 3,547,127 $ 39,545,346 $ -36,884,223 I'$ 41,012,597 $ '44,049,803'I $ ,47,728,156 $ - 50,587,057 (357,401) (1,831,265) (335,802) (2,336,448) (1,129,720) (5,110,847) 0 106,593 0 (260,482) (544,504) 0 ' 8,726,560 12,024,394 14,631,484 15,845,156 17,645,773 19,899,242 12,024,394 $ 14,631,484 15,865,806 17,645,673 19,899;242 18,296,878 ' 106 City of Renton-1997 CAFR , Page 1 of 2 TABLE 2: ASSESSED VALUE, PROPERTY TAX RATES, LEVIES AND COLLECTIONS ' LAST TEN FISCAL YEARS Ten Year Assessed Valuation Trends ' s j 3.6 3.5 3.6 $4.0 3.4 0 i $3.5 3.0 3.1 0 n $3.0 2.3 2.4 - s $2.5 2.1 -- - -- , 0 f $2.0 - - D $1.5 1 $1.0 - -- a $0.5 - 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 DESCRIPTION 1988 1989 1990 1991 , ASSESSED VALUE DECEMBER 31: Real Property Value $ 1,579,510,236 $ 1,804,228,971 $ 1,864,385,958 $ 2,425,865,552 Personal Property Value 477,638,324 482,499,763 556,894,507 620,506,587 TOTAL ASSESSED VALUE $ 2,057,148,560 $ 2,286,728,734 $ 2,421,280,465 $ 3,046,372,139 CITY AND OVERLAPPING TAX RATES: (a) City of Renton:General Levy $ 3.48761 $ 3.41746 $ 3.55659 $ 3.09203 City of Renton:Special Levy 0.40764 0.34177 0.54768 0.50609 City of Renton Total $ 3.89525 $ 3.75923 $ 4.10427 $ 3.59812 King County 1.89387 1.96262 2.05464 1.73030 Port of Seattle 0.43275 0.42940 0.45367 0.32332 Hospital District#1 0.23166 0.21891 0.21743 0.17485 Renton School District#403 2.02323 2.41016 2.43657 2.07349 State of Washington 3.84221 3.74197 4.04611 3.38348 Emergency Medical Services 0.25000 0.24829 0.25000 0.19911 TOTAL PROPERTY TAX RATES $ 12.56897 $ 12.77058 $ 13.56269 $ 11.48267 PROPERTY TAX LEVIES AND COLLECTIONS: LEVY: (b) Original $ 7,962,899 $ 8,621,313 $ 9,951,295 $ 10,959,734 Adjusted $ 7,965,967 $ 8,594,394 $ 9,968,237 $ 10,763,298 COLLECTIONS: Current Collections $ 7,705,961 $ 8,347,835 $ 9,748,293 $ 10,455,653 Percent of Adjusted Levy 96.74% 97.13% 97.79% 97.14°% Delinquent Collections $ 195,246 $ 204,613 $ 222,135 $ 204,311 TOTAL COLLECTION OF CURRENT&DELINQUENT $ 7,901,207 $ 8,552,448 $ 9,970,428 $ 10,659,964 PERCENT OF ADJUSTED LEVY 99.19°% 99.51°% 100.02°% 99.04°% OUTSTANDING DELINQUENT TAXES $ 396,145 $ 343,787 $ 341,596 $ 444,930 PERCENT OF DELINQUENT TAXES TO ADJ LEVY 4.97% 4.00°% 3.43% 4.13°% Source:King County Department of Assessments. (a)Property tax rates are in dollars per$1,000 of taxable property valued at 100°%. (b)Restated for error in reporting for 1993 CAFR. 107 ' City of Renton-1997 CAFR Page 2 of 2 ' Property Tax Allocation City of Renton EMS 30% 2% ' King County State 15% 25% Port of Seattle 2% Hospital Schools 1% ' 25% ' 1992 1993 1994 1995 1996 1997 $ 2,466,868,427 $ 2,730,285,285 $ 2,756,919,925 $ 2,904,421,288 $ 2,933,904,882 $ 2,978,575,856 664,964,302 699,080,839 673,405,117 675,278,785 612,192,280 647,025,908 $ 3,131,832,729 $ 3,429,366,124 $ 3,430,325,042 $ 3,579,700,073 $ 3,546,097,162 $ 3,625,601,764 $ 3.28917 $ 3.23416 $ 3.48681 $ 3.55454 $ 3.60000 $ 3.60000 0.40324 0.41577 0.36282 0.36408 0.34413 0.38781 $ 3.69241 $ 3.64993 $ 3.84963 $ 3.91862 $ 3.94413 $ 3.98781 1.79973 2.14039 2.21546 2.25288 2.20943 2.13173 ' 0.34421 0.30518 0.30367 0.29482 0.29211 0.28261 0.17781 0.16238 0.14767 0.15084 0.15698 0.15959 2.13257 3.89165 3.60091 3.52218 3.71940 3.53615 3.54132 3.30069 3.39960 3.41873 3.49966 3.52499 0.25000 0.23942 0.24972 0.24990 0.24987 0.25000 $ 11.93805 $ 13.68964 $ 13.76666 $ 13.80797 $ 14.07158 $ 13.87288 $ 11,507,994 $ 12,436,132 $ 13,121,967 $ 13,971,424 $ 13,898,818 $ 14,364,723 $ 11,408,258 $ 12,333,996 $ 12,898,033 $ 13,799,832 $ 13,583,469 $ 14,167,346 $ 11,194,251 $ 11,941,091 $ 12,654,957 $ 13,327,749 $ 13,359,611 $ 13,970,125 98.12% 96.81% 98.12% 96.58% 98.35% 98.61% $ 284,769 $ 194,799 $ 404,787 $ 323,487 $ 347,054 $ 315,345 $ 11,479,020 $ 12,135,890 $ 13,059,744 $ 13,651,236 $ 13,706,665 $ 14,285,470 100.62% 98.39% 101.25% 98.92% 100.91% 100.83% $ 374,168 $ 572,274 $ 410,563 $ 559,159 $ 435,963 $ 317,841 3.28% 4.64% 3.18% 4.05% 3.21% 2.24% i� ' 108 City of Renton-1997 CAFR ' TABLE 3: RATIO OF NET GENERAL OBLIGATION DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA- LAST TEN FISCAL YEARS , Ten Year Renton Per Capita Net Bonded Debt Trends $700 $600 , $500 ' $400 $611 $630 $300 $588 $468 $499 $494 $482 $450 , $200 $398 $353 $100 ' $0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 DEBT SERVICE NET RATIO OF NET NET'BONDED FISCAL ASSESSED GROSS FUNDS BONDED BONDED DEBT TO DEBT YEAR POPULATION VALUE BONDED DEBT AVAILABLE DEBT ASSESSED VALUE PER CAPITA 1988 36,940 $ 2,030,493,796 $ 17,999,781 $ 728,030 $ 17,271,751 0.85% $ 468 1989 38,480 $ 2,286,728,734 $ 24,295,231 $ 799,317 $ 23,495,914 1.03% $ 611 1990 39,340 $ 2,421,280,465 $ 23,925,377 $ 827,930 $ 23,097,447 0.95% $ 588 1991 43,000 $ 3,046,372,139 $ 22,472,719 $ 1,007,850 $ 21,464,869 0.70% $ 499 1992 43,090 $ 3,131,832,729 $ 22,318,712 $ 1,039,480 $ 21,279,232 0.68% $ 494 1993 43,470 $ 3,429,366,124 $ 22,258,603 $ 1,288,208 $ 20,970,395 0.61% $ 482 1994 43,970 $ 3,430,325,042 $ 21,160,297 $ 1,373,226 $ 19,787,071 0.58% $ 450 1995 44,890 $ 3,579,700,073 $ 19,065,569 $ 1,220,234 $ 17,845,335 0.50% $ 398 1996 45,170 $ 3,546,097,162 $ 17,382,945 $ 1,426,722 $ 15,956,223 0.45% $ 353 1997 45,920 $ 3,625,601,764 $ 30,121,269 $ 1,184,279 $ 28,936,990 0.80% $ 630 Source:State of Washington Office of Program Planning and Fiscal Management, King County Department of Assessments,and City of Renton Finance Department. 109 City of Renton-1997 CAFR TABLE 4: SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS LAST TEN FISCAL YEARS Special Assessment Billings and Collections 240.0% ° 210.0% m m 180.0% 0 c 150.0% U N a 120.0% l0 u 212.7°x0 ° 90.0% 188.0% 196.3% v 174.0% C ' 0 1381% 140.1% 0 60.0% 113.9% ° 96.5% 95.1% 93.9% 0 U 30.0% 0.0% 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 ASSESSMENTS COLLECTION ASSESSMENTS FISCAL RECEIVABLE ADDITIONAL ASSESSMENT ------------------ COLLECTION ------------------ ASA% RECEIVABLE YEAR 1/1 ASSESSMENT BILLING PRINCIPAL INTEREST TOTAL OF BILLING 12/31 1988 $ 6,520,886 $ 3,830,502 $ 1,754,939 $ 997,706 $ 696,288 $ 1,693,994 96.53% $ 9,353,682 1989 $ 9,353,682 $ 0 $ 2,117,212 $ 1,074,848 $ 937,583 $ 2,012,431 95.05% $ 8,278,834 1990 $ 8,278,834 $ 0 $ 1,911,854 $ 1,056,721 $ 738,829 $ 1,795,550 93.92% $ 7,222,113 1991 $ 7,222,113 $ 0 $ 1,546,338 $ 1,465,953 $ 670,018 $ 2,135,971 138.13% $ 5,756,160 1992 $ 5,756,160 $ 0 $ 1,284,581 $ 1,739,087 $ 675,531 $ 2,414,618 187.97% $ 3,876,542 1993 $ 3,876,542 $ 1,654,063 $ 737,439 $ 592,131 $ 441,136 $ 1,033,267 140.12% $ 5,110,162 1994 $ 5,110,162 $ 326,364 $ 889,261 $ 685,629 $ 327,520 $ 1,013,149 113.93% $ 4,750,897 1995 $ 4,750,897 $ 124,294 $ 588,009 $ 908,724 $ 342,194 $ 1,250,918 212.74% $ 4,212,282 ` 1996 $ 4,212,282 $ 0 $ 820,459 $ 1,002,924 $ 607,356 $ 1,610,280 196.27% $ 3,209,358 1997 $ 3,209,358 $ 0 $ 471,759 $ 605,594 $ 215,457 $ 821,051 174.04% $ 2,603,764 Source:City of Renton Finance Department. rr 110 City of Renton-1997 CAFR ' TABLE 5: COMPUTATION OF LEGAL DEBT MARGIN FOR GENERAL AND SPECIAL PURPOSE CAPACITIES AS OF DECEMBER 31, 1997, AND ALL DEBT CAPACITIES- LAST TEN FISCAL YEARS , Ten Year Debt Capacity Trends , $60 -r - - Excess Levy $5 I (Voted) ' M $49.3 $47.6 i $45.1 I $42.6 $42.8 I ° $4 $35.5 $36.9 n S $31 $30.6 $32.0 ° f D ° $20 Councilmanic I (Non-Voted) $13.6 $13.8 I $11.5 - a $10 r s $5.3 $3.3 $0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 GENERAL CAPACITY SPECIAL PURPOSE CAPACITY PARKS AND UTILITY TOTAL DESCRIPTION COUNCILMANIC EXCESS LEVY OPEN SPACE PURPOSES CAPACITY ASSESSED VALUE(1998): $3,625,601,764 2.50%of Assessed Value $ N/A $ 90,640,044 $ 90,640,044 $ 90,640,044 $ 271,920,132 1.50%of Assessed Value 54,384,026 (54,384,026) N/A N/A 0 STATUTORY DEBT LIMIT $ 54,384,026 $ 36,256,018 $ 90,640,044 $ 90,640,044 $ 271,920,132 10 General Obligation Bonds $ 23,177,908 $ 4,595,000 $ 2,335,000 $ 0 $ 30,107,908 Installment Contracts(a) 13,361 0 0 0 13,361 TOTAL DEBT OUTSTANDING $ 23,191,269 $ 4,595,000 $ 2,335,000 $ 0 $ 30,121,269 Less Amount Available in Debt Service Funds $ 307,117 $ 352,537 $ 524,625 $ 0 $ 1,184,279 NET DEBT OUTSTANDING $ 22,884,152 $ 4,242,463 $ 1,810,375 $ 0 $ 28,936,990 REMAINING DEBT CAPACITY $ 31,499,874 $ 32,013,555 $ 88,829,669 $ 90,640,044 $ 242,983,142 Source:King County Department of Assessments. ' City of Renton Finance Department. (a)Statutory limit=.75%of 1%of assessed value. f 11f City of Renton•1997 CAFR TABLE 6: COMPUTATION OF DIRECT AND OVERLAPPING DEBT- DECEMBER 31, 1997 City of Renton Direct and Overlappinq Debt $100 _ M i Hospital-$.9 1 $80 rw i 0 Schools-$36.0 n s $60 i o Port-$4.3 f $40 County-$16.7 D o I $20 I Renton-$30.1 a r R $0 PERCENTAGE AMOUNT NET DEBT APPLICABLE APPLICABLE JURISDICTION OUTSTANDING TO RENTON TO RENTON NET DIRECT DEBT: 1P City of Renton $30,121,269 100.00% $30,121,269 bw OVERLAPPING DEBT: King County $590,844,241 2.83% $16,720,892 Port of Seattle $150,665,792 2.83% $4,263,842 Renton School District#403 $65,810,051 54.71% $36,004,679 Hospital District#1 $3,959,868 23.48% $929,777 ' TOTAL DIRECT AND OVERLAPPING DEBT $841,401,221 10.46% $88,040,459 Source: King County Department of Finance and King County Department of Assessments. f i 112 City of Renton-1997 CAFR TABLE 7: RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION BONDS TO TOTAL GENERAL GOVERNMENT EXPENDITURES - LAST TEN FISCAL YEARS Ten Year Debt Service to Expenditure Ratio Trend 12.00% 922% 8.36% 9.00% 7.70% — — r 7.00% 6.27% 6.17% 5.K%/ 5.36% 5.03% 6.00% II 3.00% r 0.00% 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 (b) TOTAL GENERAL RATIO OF DEBT FISCAL (a) " (a) TOTAL GOVERNMENTAL SERVICETO YEAR PRINCIPAL INTEREST DEBT SERVICE EXPENDITURESEXPENDITURES 1988 $ 666,061 $ 1,138,226 $ 2,504,767 $ 26,495,246 9.45% 1989 $ 752,670 $ 1,163,653 $ 2,545,997 $ 30,438,949 8.36% 1990 $ 843,440 $ 1,699,597 $ 3,085,244 $ 33,474,954 9.22% 1991 $ 1,101,827 $ 1,452,831 $ 2,554,658 $ 33,191,923 7.70% 1992 $ 1,123,341 $ 1,355,678 $ 2,479,019 $ 39,545,346 6.27% 1993 $ 1,276,160 $ 1,304,215 $ 2,580,375 $ 36,884,223 7.00% 1994 $ 1,614,288 $ 916,353 $ 2,530,641 $ 41,012,597 6.17% 1995 $ 1,720,397 $ 843,051 $ 2,563,448 $ 44,049,803 5.82% 1996 $ 1,631,406 $ 770,117 $ 2,401,523 $ 47,728,156 5.03% 1997 $ 1,619,878 $ 1,093,294 $ 2,713,172 $ 50,587,057 5.36% (a)Principal and Interest are based on total GO Bond debt payments. The actual payments were made from several funds including;debt service,enterprise,and internal services. (b)General Government Expenditures include General,Special Revenue,and Debt Service Funds. Other Financing Uses and Residual Equity Transfers are not included. Source:City of Renton Finance Department 113 City of Renton-1997 CAFR TABLE 8: REVENUE BOND COVERAGE FOR WATER AND SEWER, AND GOLF SYSTEM BONDS LAST TEN FISCAL YEARS Water/Sewer Revenue Bond Debt Service Coverage r 3.00 C 0 2.50 v e r 2.00 a 9 1.50 e 2.63 2.55 2.63 R 1.0 2.07 2.28 2.32 2.36 2.25 2.43 2.06 a t i 0.50 0 0.00 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 (a) OPERATING NET REVENUE AVERAGE ANNUAL COVERAGE FISCAL GROSS EXPENSES AVAILABLE FOR DEBT SERVICE (b) IS TO BE YEAR REVENUE W10 DEPREC. DEBT SERVICE REQUIREMENTS COVERAGE AT LEAST WATER AND SEWER REVENUE BONDS: 1988 $ 9,596,335 $ 6,423,697 $ 3,172,638 $ 1,393,553 2.28 1989 $ 10,307,395 $ 6,737,270 $ 3,570,125 $ 1,732,154 2.06 1990 $ 12,085,799 $ 7,928,415 $ 4,157,384 $ 1,791,718 2.32 1991 $ 13,533,090 $ 8,856,219 $ 4,676,871 $ 2,263,918 2.07 1992 $ 15,581,113 $ 9,767,486 $ 5,813,627 $ 2,214,024 2.63 1993 $ 16,809,047 $ 10,478,147 $ 6,330,900 $ 2,679,581 2.36 1994 $ 18,266,154 $ `11,500,657 $ 6,765,497 $ 3,004,180 2.25 1995 $ 20,781,235 $ 13,187,048 $ 7,594,187 $ 3,131,174 2.43 1996 $ 22,842,549 $ 14,750,009 $ 8,092,540 $ 3,173,846 2.55 1997 $ 22,854,798 $ 14,580,175 $ 8,274,623 $ 3,151,984 2.63 1.3 GOLF COURSE REVENUE BONDS(c): 1994 $ 1,319,025 $ 561,028 $ 757,997 $ 419,334 1.81 1.25 1995 $ 1,490,505 $ 767,283 $ 723,222 $ 421,127 1.72 1.25 1996 $ 2,078,745 $ 1,076,030 $ 1,002,715 $ 431,521 2.32 1.25 ' 1997 $ 2,724,692 $ 1,270,849 $ 1,453,843 $ 455,626 3.19 1.25 (a)Gross revenue includes connection charges,system development charges,and latecomer fees. ' (b) Bond financing requirements are that the average annual coverage is at least 1.3 times the average annual debt service for Water and Sewer revenue bonds. The Golf System revenue bonds coverage requirement is at least 1.25 times that of respective calendar year's annual debt service. (c)Golf System Revenue Bonds were issued July 1, 1994. Source:City of Renton Finance Department. ' 114 City of Renton-1997 CAFR ' TABLE 9: CITY OF RENTON RETAIL SALES BY SOURCE LAST FIVE FISCAL YEARS ' Changing Sales Tax Composition , (1993 vs 199 Other 0.06% ' Finance 0.22% Transportation/Utilities Manufacturing Wholesale 1.18% , General Retailing 4.4896 Construction Services -5.45% ''.. Auto Dealers -6.00% 4.00% -200% 0.00% 2.00% 4.00% 6.00 Percent Change 1993 1994 1995 1996 1997 SOURCE AMOUNT % AMOUNT % AMOUNT % AMOUNT % AMOUNT % Auto Dealers $218,888,294 18.56% $236,961,792 20.94% $253,284,313 20.41% $291,362,550 21.39% $326,383,100 22.16% Services 231,883,527 19.66% 236,880,666 20.94% 241,635,889 19.47% 260,423,165 19.120/ 209,241,100 14.21% Construction 212,427,829 18.01% 180,473,006 15.95% 198,736,301 16.01% 200,286,873 14.70% 220,544,200 14.98 General Retailing 243,891,449 20.68% 228,267,754 20.18% 260,082,900 20.96% 299,573,106 21.99% 370,568,200 25.16% Wholesale 133,766,573 11.34% 127,984,865 11.31% 140,998,453 11.36% 168,589,517 12.38% 184,397,100 12.52% Manufacturing 85,929,946 7.29% 66,049,495 5.84% 77,867,860 6.27% 70,637,260 5.19% 76,016,500 5.16% Transport/Utilities 38,098,432 3.23% 39,442,142 3.49% 53,667,875 4.32% 55,563,899 4.08% 63,179,600 4.29% Finance 9,656,059 0.82% 9,325,745 0.82% 9,364,771 0.75% 9,872,825 0.72% 15,307,300 1.04% Other 4,874,633 0.41% 5,968,206 0.53% 5,469,554 0.44% 5,892,122 0.43% 7,009,500 0.48% TOTALS $1,179,416,742 100.00%1 $1,131,353,671 100.00%1 $1,241,107,916 100.00%1 $1,362,201,317 100.00% $1,472,646,600 100.0096 Source:City of Renton Finance Department 115 ' City of Renton-1997 CAFR TABLE 10: LARGEST TAXPAYERS BASED ON ASSESSED VALUATION AND PRINCIPAL EMPLOYERS 1997 REAL PROPERTY PERCENT OF ASSESSED ASSESSED TAXPAYER TYPE OF BUSINESS VALUATION VALUATION The Boeing Company Aerospace&Computer Services 736,036,584 20.30% PACCAR Heavy Manufacturing 89,191,285 2.46% Puget Sound Power&Light Electric Utility 71,182,509 1.96% Renton Building 1-7 Variety 38,242,800 1.05% US West Telephone Utility 33,233,915 0.92% Roundup(Fred Meyer) Retail-Miscellaneous 22,997,426 0.63% Renton Village Assoc. Shopping Center 17,323,900 0.48% Sunpointe Associates Ltd. Property Development 15,333,300 0.42% Renton Talbot Delaware Office Building 14,569,000 0.40% Blackner JVLLC Office Building 11,735,000 0.32% Total Assessed Valuation-Largest Taxpayers $ 1,049,845,719 28.94% Total Assessed Valuation-All Others 2,575,756,045 71.06% Total Assessed Valuation $ 3,625,601,764 100.00% ' 1997 NUMBER OF PERCENT OF PRINCIPAL EMPLOYERS TYPE OF BUSINESS EMPLOYEES EMPLOYEES The Boeing Company Aerospace&Computer Services 19,613 45.50% Pacific Car&Foundry Heavy Manufacturing 1,204 2.79% Valley Medical Center Medical Services 1,397 3.24% Federal Aviation Administration Federal Government 1,127 2.61% Renton School District Public Education 655 1.52% Multiple Zones International Computer Hardware/Software Catalog Retail 610 1.42% City of Renton City Government 639 1.48% Wizards of the Coast Retail-Miscellaneous 419 0.97% Kay Smith Business Publishing&Printing 276 0.64% WalMart Retail-Miscellaneous 274 0.64% ' Total Number of Employees-Principal Employers 26,214 60.81% Total Number of Employees-All Other Employers 16,892 39.19% Total Employees Working Within Renton 43,106 100.00% Source: Assessed Valuation: King County Department of Assessments. Assessed Valuation for Largest Taxpayer: King County Department of Assessments,both real and personal property assessment where applicable. Number of Employees:City of Renton Business License Records,based on fourth quarter information. 116 City of Renton-1997 CAFR Page 1 of 2 TABLE 11: CONSTRUCTION-LAST TEN FISCAL YEARS ' New Construction Permit Valuation Trend , M $180 I 1 $150 — ---- I 0 ' n $120 S 0 $90 f t er Per D $60 Single Family 0 1 Multi aml y ' 1 $30 a r S $o , 1994 1995 1996 1997 NEW CONSTRUCTION ALL NEW BUILDING PERMITS OTHER PERMITS CONSTRUCTION COMMERCIAL MULTI FAMILY SINGLE FAMILY COM/MULTI/SINGLE PERMITS FISCAL NO.OF DOLLAR NO.OF DOLLAR NO.OF DOLLAR NO.OF DOLLAR FISCAL YEAR PERMITS VALUE PERMITS VALUE PERMITS VALUE PERMITS VALUE PERMITS VALUATION YEAR 1988 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 1988 1989 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 1989 1990 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 1990 1991 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 1991 1992 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 1992 1993 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 1993 1994 26 $ 41,646,451 21 $ 10,755,923 97 $ 13,384,973 531 $ 14,455,415 675 $ 80,242,763 1994 1995 29 $ 43,913,909 16 $ 7,051,996 133 $ 17,464,456 1,100 $ 11,031,008 1,278 $ 79,461,369 1995 1996 26 $ 38,474,779 27 $ 11,207,074 192 $ 27,344,159 1,159 $ 6,684,931 1,404 $ 83,710,943 1996 1997 28 $ 56,368,747 73 $ 40,593,074 249 $ 37,453,977 1,639 $ 14,350,058 1,989 $ 148,765,857 1 1997 Source: Construction permits and values-City of Renton Building Department. Note: For 1988 through 1993,the breakout as seen above is unavailable,but total permits and valuations are shown. Other permits include plumbing,electrical,mechanical,and sign permits. Starting September 1997,Combo Building Permits are being issued for new residential construction. This combo permit combines permits for building,electrical,mechanical,and plumbing. 117 City o1 Renton-1997 CAFR rr Page 2 of 2 um Ten Year Total Construction Permit Valuation Trend M $270 I I $240 j $210 ' 0 n $180 s $150 0 1 $120 239.2 210.5 D $90 173.9 150.8. 14a.s 0 142.5 133.5 I $6 100.2 121.3 99.4 $30 a r $o 8 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 ADDITIONAL/ALTERATION CONSTRUCTION ALL ALTERATION RAT ON ALL BUILDING PERMITS OTHER PERMITS CONSTRUCTION COMMERCIAL MULTI FAMILY SINGLE FAMILY COM/MULTI/SINGLE PERMITS PERMITS NO.OF DOLLAR NO.OF DOLLAR NO.OF DOLLAR NO.OF DOLLAR PERMITS VALUE PERMITS VALUE PERMITS VALUE PERMITS VALUE PERMITS VALUATION PERMITS VALUATION N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 3,135 $ 150,789,305 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 3,815 $ 100,199,678 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 3,862 $ 144,568,955 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 3,740 $ 173,866,147 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 3,526 $ 210,500,686 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 3,564 $ 98,385,628 380 $ 42,431,505 14 $ 449,075 96 $ 1,697,251 1,990 $ 17,729,294 2,480 $ 62,307,125 3,155 $ 142,549,887 336 $ 23,760,983 12 $ 203,450 99 $ 1,856,162 1,618 $ 16,014,437 2,065 $ 41,835,033 3,343 $ 121,296,402 314 $ 33,112,674 31 $ 666,046 97 $ 1,679,484 1,652 $ 14,336,769 2,094 $ 49,794,973 3,498 $ 133,505,916 356 $ 64,142,868 11 $ 303,112 96 $ 1,418,804 1,891 $ 24,615,480 1 2,354 $ 90,480,264 4,343 $ 239,246,120 �r ' 118 City of Renton-1997 CAFR TABLE 12: DEMOGRAPHIC STATISTICS - LAST TEN FISCAL YEARS r Ten Year Population Trends P 0 50.0 P I Id a 40.0 t i � 30.0 i 44.9 45.2 45.9 n 43.0 43.1 43.5 44.0 20. 36.9 38.5 39.3 � 10.0 +rr 0.0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 PER FISCAL CAPITA MEDIAN SCHOOL UNEMPLOYMENT YEAR POPULATION INCOME AGE ENROLLMENT RATE 1988 36,940 20,624 33.80 11,855 4.60% 1989 38,480 22,010 34.10 11,902 4.40% 1990 39,340 16,298 32.00 11,823 3.30% 1991 43,000 N/A N/A 11,679 4.60% 1992 43,090 N/A N/A 11,954 5.60% 1993 43,470 N/A N/A 11,988 6.30% 1994 43,970 N/A N/A 11,984 4.90% 1995 44,890 N/A N/A 12,173 5.70% 1996 45,170 N/A N/A 12,333 5.40% 1997 45,920 N/A N/A 12,277 3.60% Source: Population-State of Washington Office of Program Planning and Fiscal Management. Per Capita Income-Puget Sound Council of Governments. .. Median Age-Office of Financial Management. School Enrollment-Renton School District 403 Unemployment Rate-Employment Security Department,Labor Market and Economic Analysis Branch, Labor Market Information Center. ..r 119 City of Renton-1997 CAFR WASHINGTON STATE British Columbia OEverett ®Seattle Spokane p, °Renton Idaho *Olympia Oregon DATE OF INCORPORATION...........................................September 6,1901 TRAFFIC SIGNALS FORM OF GOVERNMENT....................................................Mayor-Council Number of Signalized Intersections.........................................................97 TYPE OF GOVERNMENT........................................Non-Charter,Code City LOCATION..............................................................11 Miles South of Seattle STREETS LAND AREA.....................................................................16.52 Square Miles Miles of Streets and alleys................................................................190.12 RANK IN SIZE-STATE OF WASHINGTON..............................................14 RANK IN SIZE-KING COUNTY...................................................................6 UTILITY SERVICES POPULATION(Official April,1997)......................................................45,920 Water: iY.. 1997 KC CERT OF ASSESSED VALUATION Total Customers...............................................................................13,212 for the 1998 Tax Roll Year.................................................$3,625,601,764 Total Gallons of Water Produced.........................................2,598,420,000 CITY EMPLOYEES(All Full Time Equivalents/FTE)..............................638.6 Number of Fire Hydrants....................................................................2,763 Miles of Water Main..........................................................................243.90 ELECTION&VOTER REGISTRATION s Number of Precincts...............................................................................69 Sanitary Sewer: Number of Registered Voters..........................................................24,504 Total Customers...............................................................................11,129 FIRE PROTECTION Fire Rating(Washington Survey and Rating Bureau)...............................4 Storm Drainage: Number of Commissioned Fire Fighting Personnel................................97 Number of Accounts.........................................................................11,611 Number of Stations(includes Dist#25)....................................................5 Miles of Storm Sewers........................................................................173.7 ' Total Fire Loss..........................................................................$2,361,578 Number of Life Support Responses...................................................5,172 LICENSE&PERMITS AllOther Responses..........................................................................2,038 Business Licenses..............................................................................3.235 Total Number of Responses..............................................................7,210 Amusement and Special Permits..........................................................239 Animal Licenses(Dog and Cat)..........................................................3,767 POLICE PROTECTION Number of Commissioned Police Personnel...........................................86 AIRPORT Number of Calls for Services...........................................................48,710 Area in acres....................................................................................167.21 Total Crimes Reported(Class I,II,III)...............................................9,562 Feet of Asphaltic Concrete Runway...................................................5,379 Traffic Accidents Investigated............................................................1,769 Total Operations...............................................................................99,024 t All Other Traffic Violations................................................................11,300 LIBRARY it PARKS&RECREATION Libraries(Main and Highlands Branch).....................................................2 Total Acreage.....................................................................................1,173 Total Registered Borrowers..............................................................19,437 Number of Parks and Playgrounds.........................................................25 Total Circulation..............................................................................313,407 ' 120 Staff who contributed their time and talents on this project are: Linda Dixon, DeAnna Fricke, Linda Honeycutt, Karl Hurst, Gina Jarvis, Paul Kusakabe, Debbie Scott, and Debbie Willard Thank you to all who contributed to the CAFR. Victoria Runkle