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HomeMy WebLinkAbout2002 CAFR® Ci ty of Renton, Wa shington · for 1:h0 year Ending De,)<;n•1ber 31, 2002 - - ... ... - - - - - ... - - - ... ... - - - City of Renton 2002 COMPREHENSIVE ANNUAL FINANCIAL REPORT For Year Ended December 31, 2002 Victoria A. Runkle Finance & Information Services Administrator 1055 South Grady Way Renton, Washington 98055 {425) 430-6858 Website: www.ci.renton.wa.us Acknowledgements Prepared by the City of Renton Finance Division Finance & Information Services Administrator Victoria A. Runkle Fiscal Services Director Elaine M. Gregory Accounting Manager Gina L. Jarvis Accounting Staff Linda Dixon Norma Kuhn Nancy Violante Administrative Secretary II DeAnna Fricke ii ITEM TABLE OF CONTENTS DECEMBER 31, 2002 PAGE Note 11 : Prior Year Restatements ........................................................................................ 54 Note 12: Construction Commitments ................................................................................. 54 Note 13: Long-Term Debt and Capital Leases .................................................................. 54 Note 14: Deferred Charges in Proprietary Funds ............................................................... 60 Note 15: Reservations and Designations of Fund Equity .................................................. 60 Note 16: Segment Information for Enterprise Funds .......................................................... 61 Note 17: Litigation ................................................................................................................. 61 Note 18: Risk Management .................................................................................................. 62 Note 19: Subsequent Events ................................................................................................ 64 Note 20: Accounting and Reporting Change ................................................................... 64 Combining Financial Statements and Schedules of Individual Funds and Account Groups: General Fund: General Fund Description ...................................................................................................... 65 Comparative Balance Sheet ................................................................................................ 66 Statement of Revenues, Expenditures and Changes in Fund Balance ........................... 67 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual ............................................................................................................ 68 Special Revenue Funds: Special Revenue Fund Descriptions ..................................................................................... 69 Combining Balance Sheet .................................................................................................... 70 Combining Statement of Revenues. Expenditures and Changes in Fund Balances ..... 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual ............................................................................................................ 7 4 Debt Service Funds: Debt Service Fund Descriptions ............................................................................................ 81 Combining Balance Sheet .................................................................................................... 82 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..... 84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual ............................................................................................................ 86 Capital Project Funds: Capital Project Fund Descriptions ........................................................................................ 93 Combining Balance Sheet .................................................................................................... 94 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..... 96 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual ............................................................................................................ 98 Enterprise Funds: Enterprise Fund Descriptions ................................................................................................ 105 Combining Balance Sheet .................................................................................................. 106 Combining Statement of Revenues, Expenses and Changes in Fund Equity ............... 108 Combining Statement of Cash Flows ................................................................................. 110 Internal Service Funds: Internal Service Fund Descriptions ....................................................................................... 115 Combining Balance Sheet .................................................................................................. 11 6 Combining Statement of Revenues, Expenses and Changes in Fund Equity ............... 117 Combining Statement of Cash Flows .................................................................................. 118 iv - - - - - - - - - - ... - - - - - - ITEM TABLE OF CONTENTS DECEMBER 31, 2002 PAGE Fiduciary Funds: Fiduciary Fund Descriptions ................................................................................................. 119 Combining Balance Sheet .................................................................................................. 120 Combining Statement of Changes in Assets and Liabilities All Agency Funds ............. 121 Firemen's Pension Trust Fund -Statement of Plan Net Assets ......................................... 122 Firemen's Pension Trust Fund -Statement of Changes in Plan Net Assets ..................... 123 General Fixed Assets Account Group: General Fixed Assets Account Group Description ........................................................... 125 Comparative Balance Sheet .............................................................................................. 126 Schedule of General Fixed Assets by Source .................................................................... 127 Schedule of General Fixed Assets by Function and Activity ........................................... 128 Schedule of Changes in General Fixed Assets by Function and Activity ...................... 128 General Long-Term Debt Account Group: General Long-Term Debt Account Group Description .................................................... 129 Comparative Balance Sheet .............................................................................................. 130 STATISTICAL SECTION Statistical Section Description .................................................................................................. 131 Table 1 : General Government Revenues & Expenditures -Last Ten Fiscal Years ........ 132 Table 2: Assessed Value. Property Tax Rates, Levies and Collections- Last Ten Fiscal Years .............................................................................................. 134 Table 3: Ratio of Net General Obligation Debt to Assessed Value & Net Bonded Debt per Capita -Last Ten Fiscal Years ................................... 136 Table 4: Special Assessment Billings and Collections -Last Ten Fiscal Years ................ 137 Table 5: Computation of Legal Debt Margin -December 31, 2002 ............................. 138 Table 6: Computation of Direct and Overlapping Debt -December 31 , 2002 ........... 139 Table 7: General Obligation Bonds/Expenditure Ratio -Last Ten Fiscal Years ............. 140 Table 8: Revenue Bond Coverage -Last Ten Fiscal Years ............................................. 141 Table 9: Retail Sales by Source -Last Five Fiscal Years ................................................... 142 Table 10: Largest Taxpayers and Principal Employers ....................................................... 143 Table 11: Construction Permits -Last Ten Fiscal Years ....................................................... 144 Table 12: Demographic Statistics -Last Ten Fiscal Years .................................................. 146 Table 13: Miscellaneous Statistics ......................................................................................... 147 v - - - - - - - - - - - - - ... ... - - - - ITEM TABLE OF CONTENTS DECEMBER 31, 2002 PAGE INTRODUCTORY SECTION Letter of Transmittal .......................................................................................................................... 1 2001 Comprehensive Annual Financial Report Award .............................................................. 15 Corporate Organization Structure & Reporting Relations ......................................................... 16 FINANCIAL SECTION Independent Auditor's Report ....................................................................................................... 1 7 General Purpose Financial Statements ........................................................................................ 19 Combined Financial Statements: Combined Balance Sheet -All Fund Types and Account Groups ........................................ 20 Combined Statement of Revenues, Expenditures and Changes in Fund Balances for All Governmental Fund Types ......................................................................... 22 Combined Statement of Revenues. Expenditures and Changes in Fund Balances Budget and Actual.. ............................................................................................................... 23 Combined Statement of Revenues. Expenses and Changes in Fund Equity -All Proprietary Fund Types ....................................................................................... 27 Combined Statement of Cash Flows -All Proprietary Fund Types ........................................ 28 Firemen's Pension Trust Fund Statement of Changes in Plan Net Assets .............................. 30 Notes to Financial Statements: Note 1 : Significant Accounting Policies ............................................................................ 31 Reporting Entity ................................................................................................... 31 Basis of Presentation -Fund Accounting ......................................................... 31 Basis of Accounting ............................................................................................ 33 Budgets and Budgetary Accounting ............................................................... 34 Assets. Liabilities and Fund Equity ..................................................................... 35 Cash and Cash Equivalents ........................................................................... 35 Investments ...................................................................................................... 35 Inventories ........................................................................................................ 35 Property Taxes Receivable ............................................................................. 35 Assessments Receivable ................................................................................. 36 Fixed Assets and Depreciation ...................................................................... 37 Accumulated Unpaid Vacation and Sick Pay ............................................ 37 Fund Equity -Reserves & Designations .......................................................... 38 Risk Management and Risk Retention .......................................................... 38 Note 2: Stewardship, Compliance and Accountability ................................................. 38 Note 3: Cash & lnvestments ............................................................................................... 38 Note 4: Deferred Compensation ...................................................................................... 40 Note 5: Receivables and Payables ................................................................................... 40 Note 6: Residual Equity and Operating Transfers ............................................................ 43 Note 7: Fixed Assets ............................................................................................................. 43 Note 8: Prepaid Items ......................................................................................................... 45 Note 9: Joint Venture .......................................................................................................... 45 Note 10: Pension Plan & Other Postemployment Benefits ............................................... .49 PERS ...................................................................................................................... 49 LEOFF .................................................................................................................... 50 Firemen's Pension ............................................................................................... 51 THIS PAGE INTENTIONALLY LEFT BLANK vi ,2 . n I Report ·.~-; City of Renton, Washington - - - - - - - - - - - - - - - - - - Jesse Tanner, Mayor July 31, 2003 Honorable Jesse Tanner, Mayor Members of the Renton City Council City of Renton 1055 South Grady Way Renton, Washington 98055 CITY OF RENTON Finance & Information Services Department Victoria A. Runkle, Administrator TRANSMITTAL OF THE 2002 COMPREHENSIVE ANNUAL FINANCIAL REPORT Dear Mayor and Council Members: With this letter the Finance & Information Services Department transmits a copy of Renton's Comprehensive Annual Financial Report for the City's year ending December 31, 2002. We received an unqualified audit report from the State Auditor's office for 2002. As always, an unqualified audit report demonstrates that city employees, with the oversight and guidance from the Finance Department, continue to regard the management and accounting of Renton's financial and fiscal assets as one of their highest priorities. In general, this report describes the financial results of the City's operations and the general financial condition as of December 31, 2002. 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 the City's fiscal and financial health and creditworthiness. Finally, the CAFR is a series of audited financial statements. These statements have all been analyzed 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. Introduction The Finance and Information Services Department (FIS) is responsible for the Management Representatton of the contents of this report. FIS is charged with responsibility for the accuracy, completeness and fairness 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. This report must be and is prepared in accordance with the requirements of Washington State Law RCW 43.09.230 and in conformance with Generally Accepted Accounting Principles (GAAP). The Government Accounting Standards Board (GASB) has established GAAP rules to compare the fiscal health and spending patterns of various public entities to one another. By following these guidelines, we ensure the report contains required elements that are clemly understood by users of detailed financial information. One of the first requirements is to ensure the report contains the CAFR Contents. Thus, the report is organized in three sections: • The Introductory Section, which includes the Letter of Transmittal, the 2001 Comprehensive Annual Financial Report Award and the City's Corporate Organization Structure and Reporting Relations. • The Financial Section, which includes an Independent Auditor's Report and the Combined Financial Statements and accompanying note disclosures, followed by the Combinin~1 Financial Statements by fund type and account group. The Combined Financial 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. • 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 revenue or general obligations of the City; and obligations of the City to finance any deficits that may occur; or receipt of significant subsidies from the City. The City of Renton is a participant in a consortium known as the Valley Communications Center. This is to provide consolidated emergency dispatch services for the cities of Federal Way, Auburn, Kent, Tukwila and Renton as owners. Many other fire, police and emergency operations also contract with the Center for the same services. The owner cities share a portion of support to the Center, based on the numbers of service calls provided to each entity. The Valley Communicotions Center is reported in the City's financial statements as a joint venture. This report does not include the financial position or operational results for the Renton Housing Authority. The City neither reviews their budget, nor is obligated to fund any of the deficits of the Authority. The City of Renton is responsible for providing basic life and safety services through our police, fire and building departments. The City provides a wide range of recreational 2 - - - - - - - - - - .... - -.. opportunities. It operates its own library system, manages two lake swimming areas, offers classes in its community and senior centers and provides a range of leisure activities in its l, 180 acres of active and passive parks. The City provides water to all citizens through its own system of aquifers, wells and from Cedar River water rights. As an adjunct to the water system, the City collects all sewer and surface water waste within the City and then transports that to the region-wide treatment system. Renton manages general maintenance and development of the city streets. It owns and operates a golf course and airport. In general, the City of Renton is a full service city, offering all of the services a large city has, but on a livable scale. Governmental Structure, Economic CondlHon and OuHook The City of Renton was incorporated in 1901. Located at the south end of Lake Washington, our city borders the City of Seattle to the north. We currently have a land area of 16. 90 square miles. We have l, 180 acres of parks that includes 26 active parks. Our 2002 population as presented by the Washington State Office of Financial Management is 53,840. The City of Renton has a strong Mayor form of government. The Mayor is independently elected for a four-year term. His job is to manage and implement the policies established by the City Council. We have a seven member Council that establishes policies, appropriates monies through the budget process and adopts local laws through ordinances. Each Council Member serves a four-year term and they are elected on a staggered two-year cycle. Both the Council and the Mayor are elected on a non-partisan basis. While the City has had a very aggressive and successful economic development program, The Boeing Company continues to be our largest employer. As illustrated later. the City of Renton is less dependent upon Boeing for our overall economic health, but nonetheless, they still have a significant influence within the City. Boeing builds the 737 and the 757 airplanes within our City limits. In 2002, they produced 252 planes at the Renton plant. The Boeing 737 Commercial Aircraft Headquarters is within our city limits. Boeing also has its Customer Service Training Center (CSTC) located here. At the CSTC, The Boeing Company trains pilots from all over the world in how to fly a Boeing aircraft in large flight simulators. While we are most proud of being the home of the most popular airplane in the world, we also began -almost a decade ago -an aggressive economic development program. Our dependence on Boeing's economic health had provided significant economic swings in the past. Over the past years, other major businesses growing or relocating within our boundaries include: Wizards of the Coast and Multiple Zones. In addition to these major corporations, we have also added significantly to our retail base with the location of an IKEA, Wal Mart and other major new retail and food stores. In 2002, we continued working with Frye's Electronics, Sam's Club, and Target in putting together their building plans. 3 In addition to the overall employment and economic growth, we are seeing substantial increases in our assessed valuation and housing growth. Between 2001 and 2002 our overall assessed valuation grew by 8.35 percent. This included over $202 million in new construction within the City limits. A total of l, 196 homes sold within the city limits in 2002. This is an increase of 148 homes sold over 2001 sales. The median price of homes in Renton grew by 7 percent. This includes the sale of 60 homes valued at $400,000 or more, as compared to 45 homes in this price range during 2001. In 2002, total Boeing employment averaged 2,345 fewer employees during 2002 over 2001. Renton's total employment decreased by 3, 169 employees -from 43,408 to 40,239. Our retail sales tax base continued to show signs of slowing in 2002. We collected approximately $15.04 million in sales tax. This was 2 percent lower than 2001. We had seen double digit increases prior to 2001. We expect that our growth will continue to slow through 2003, but we do not expect a negative growth rate. Throughout 2002, the City's construction permit!; began to grow for residential and commercial properties. This growth will take some time to translate into economic growth for our city. As illustrated in our major initiatives, we continue our efforts in economic development. In 2002, our total new building permit revenue was $1.8 million. We issued 5,07 6 permits -this was 1.1 percent more than 2001. However, most of the permits were for single-family homes. Major Initiatives Each spring the Council and Mayor meet for two days to clearly articulate the focus of new initiatives for both the current year and the following five years. These initiatives, also known as Business Goals and Strategies, are used to guide workload priorities in the current year and budget priorities for the following years. Further, over the past five years since we have used this method of prioritization, the initiatives have remained rather consistent. This process has resulted in measurable successes in 2002 and dictates what we will be working on in 2003 and 2004. Finally, to guarantee success, the Council and Mayor limit these initiatives to five. Outlined below are the City's five goals in 2002 and the success strategy for each one. Promote citywide economic development. In 2002 we continued construction on the parking garage located north of the transit center, completed in 2003. Further, construction continued on the new Performing Arts Center that was started to the west of the new garage. This major facility will be part of the renovation of one of the region's oldest high schools -Renton High School. The Performing Arts Center received over $1 million in private sector donations. 4 - - - - - - - - - - - - - - - - - In 2002 the City inaugurated a Tuesday Farmers Market during the Summer months. and a Saturday Farmers Market in the Fall. These Farmers Markets have been successful beyond anyone's imagination. Through the leadership of the Council. the city was able to host the markets for virtually no cost to the city. Promote neighborhood revitalization. The most significant strategy within this initiative is a multi-year effort. Over the years the neighborhood known as the Highlands has emerged as an area that has great redevelopment potential. It is one of Renton's oldest areas with housing that was built during World War II to house aircraft workers. As the name implies. the area is elevated from the rest of the City and has some amazing views. It also has large areas of property that can be redeveloped for retail and housing uses. In 2002. the City broke ground for the construction of a replacement fire station in the Highlands neighborhood. The current fire station is over 35 years old and does not provide an enhancement to the neighborhood. Once Fire Station 12 is completed. it will be a showcase building. It will also be the home of the City's Emergency Operations Center. In addition. the City continues to allocate over $50.000 annually for small neighborhood grants. Neighborhood associations apply for these grants, which must be matched with "sweat equity." In 2002. there were 13 grants awarded for a total of $31,563. Promote the City's Image in the community and region. In 2002. we completed the fourth year of a comprehensive marketing plan with the School District. Renton Technical College. the Hospital District and the Chamber. This plan resulted in the development of a marketing slogan. consistent marketing materials and most importantly. a consistent theme. The results have been that when a business or developer contacts any agency about information about Renton. we are ensuring they receive a professional package of information about all the assets in our city. We believe this has generated more interest in being a part of our City as we have experienced more and more growth. We measure our success by the fact our neighboring cities started campaigns in late 2000 and in 2001. In 2002. the City added $20,000 for the building of a float to promote the Farmers Market in various parades throughout the region. Meet the service demands that contribute to the livablllty of the community. Under this goal we measure our productivity efforts. The City continued its Performance Outcome efforts in 2002. The City conducted a public opinion survey in 2002 to better understand citizen priorities on city services. The survey covered eight major categories. each category rated individually in its level of importance. Results of this survey will be used in conjunction with performance outcomes in developing future annual budgets. The City sees this as a five-year initiative, but is able to begin linking resources to services. 5 Influence regional decisions that Impact the City. The 2002 elections continued to challenge the City's ability to increase its resources. Initiative 51, rejected by the voters, would have raised funds for transportation projects (including widening of 1-405 in Renton) through increased gas taxes and other fees. Initiative 776, repealing the motor-vehicle-excise tax was passed, which will ciffect funding for transit services such as the proposed light rail. Initiative 790 passed, giving employees in the LEOFF (Law Enforcement Officers' and Fire Fighters') 2 retirement system more control over the allocation of their pension benefits. This will also have a significant impact to the city; though it is unknown at this time what extent it will be. These issues, as well as Initiative 747, will continue to be major issues for 2003 and beyond. Financial Information, Management and Control A detailed understanding of the financial position and operating results of the City is provided in the CAFR. Presented below is a brief description of financial information, management of financial resources and obligations and control techniques applicable to financial resources, obligations and information. Basis of Accounting. The basis of accounting used determines when revenue and expenditures or expenses are recognized in the accounts and reported in the financial statements. All governmental funds and expendable trust funds are accounted for using the modified accrual basis of accounting. Revenue is recognized when measurable and available. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. All proprietary funds and non-expendable trust funds and pension trust funds are accounted for using the accrual basis of accounting. Under this basis of accounting, revenue is recognized when earned and expenses are recognized when incurred. Accounting Systems and Budgetary Control. One of the City's primary functions is ensuring the highest level possible of internal accounting controls. The Finance and Information Services Department, working with all other departments, develops accounting procedures, policies and organization to focus on the safeguarding of all the City's assets and the reliability of financial records. The procedures, policies and organization provide reasonable assurance that: • Transactions are executed in accordance with management's general or specific authorization. • Transactions are recorded as necessary ( 1 ) to permit preparation of financial statements in conformity with generally accepted accounting principles or any other criteria, such as finance-related legal and contractual compliance requirements applicable to such statements and (2) to maintain accountability for assets. 6 - - - - - - - - - - - - - - - - • Access to assets is permitted only in accordance with management's authorization. • The recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The definition of accounting control incorporates reasonable, but not absolute assurance that the objectives expressed in it will be accomplished by the system. The concept of reasonable assurance recognizes that the cost of internal control should not exceed the benefits to be derived. The benefits consist of reductions in the risk of failing to achieve the objectives implicit in the definition of accounting control. Within the City of Renton we believe all our internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. The Washington State Auditor's Office (SAO) and the laws of Washington State establish budgeting and accounting rules known as the Budgeting, Accounting and Reporting System (BARS). The City is annually audited by the SAO to ensure we are in compliance with the system. Budgetary control is maintained at the department level by the encumbrance of estimated purchase amounts before the release of purchase orders to vendors. The City has not had an experience where a department encumbers more than it has appropriated. If an unanticipated need arises, the Mayor, Finance Department and department return to the City Council for additional appropriation authority. Open encumbrances are reviewed at the end of the year. They are either closed as the purchase is no longer valid, or they are reported as reservations of fund balances as of December 31, 2002. The City receives resources from other State and Federal agencies under a variety of programs. Resources received from the State and Federal government are subject to various specified controls and compliance standards. The SAO annually reviews these expenditures for compliance. Monies received from the Federal government are also subject to audit according to standards established by the Single Audit Act and 1996 Amendments and related OMB Circular A-133. Both State and Federal grants require the City design, implement and monitor an internal control structure that satisfies each grant. The City is also audited by the Washington State Department of Revenue to ensure compliance with various tax laws. Any audit reports prepared separately than the annual SAO audit is not included in the Comprehensive Annual Financial Report, but can be provided upon request. The City has had no material findings in any other audit. Fund Descriptions The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operation of each fund is accounted for by a separate set of self-balancing accounts that comprise its assets, liabilities and fund equity, revenue as applicable, expenditures and expenses. The individual funds account for the governmental resources allocated to them for the purpose of continuing specific activities in accordance with special regulations, 7 restrictions or limitations. The funds used by the City are grouped into the following fund types. Governmental Funds. Governmental funds are used to account for the programs and activities of the governmental functions of the City. Genera/ Fund: The General Fund serves cis the general fund. In this fund we account for all the costs of public safety, buildin1~. planning, human services, general administration and all other activities and financicil resources except those required to be accounted for in another fund. Special Revenue Funds: Special Revenue Funds are used to account tor the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. We have special revenue funds for our parks, library and street activities, as well as several other activities. The City also allocates general governmental revenue, such as property tax. to these funds to help offset the costs of these activities. Debt Service Funds: Debt Service Funds are used to account for the resources devoted to the payment of interest and principal on long-term capital obligation debt other than those payable from specific governmental funds and Enterprise Funds. Capital Projects Funds: Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Enterprise Funds). Proprietary Funds. Proprietary funds are used to account for ongoing organizations and activities that are similar to those found in the private sector. Enterprise Funds: Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. The intent is that costs (expenses. including amortization and depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Internal Service Funds: Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the governmental unit. or to other governmental units. on a cost reimbursement basis. Fiduciary Funds. Fiduciary funds are used to account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations and other governmental units and funds. Trust and Agency Funds: Trust and Agency funds are used to account for assets held by Expendable Trust Funds. Pension Trust Funds and Agency Funds. 8 - - - - - - - - - - - - - - - - Account Groups. In addition to the several generic funds described above. the City uses account groups to establish accounting control and accountability for the City's general fixed assets and general long-term debt. The two account groups are described below: General fixed Assets Account Group: The General Fixed Assets Account Group is used to account for all fixed assets of the City other than those accounted for in proprietary funds and certain fiduciary funds. General Long Term Debt Account Group: The General Long Term Debt Account Group is used to account for all long-term debt of the City except debt accounted for in specific governmental funds, proprietary funds and certain fiduciary funds. General Government Functions. These are general municipal activities and services. The activities include, but are not limited to, public safety, parks, library, building, planning, courts, legal, debt costs and general administration. Within these funds are the capital funds. General Fund: In 2002, we collected $1.4 million more in revenue than we expended. This increase came primarily from utility taxes and charges for services. We continue to see building related fees much higher than we anticipated. REVENUE 2002 2001 Taxes $32,014,248 $31.482,675 Licenses And Permits 2,371,596 2, 110,600 Intergovernmental Revenue 1,941.063 1,966, 122 Charges For Services 4, 121,870 4,196,915 Fines And Forteits 948,861 944,671 Contributions 40, 133 101.783 Interest 555,023 1,208.435 Miscellaneous Revenue 70,018 158.530 TOTAL REVENUE i42,062,812 $42, 169.731 Expenditures from the General Fund amounted to $40,637,806 as of December 31, 2002. This was 6.2 percent above 2001 levels. In our operating budget labor costs are again the main driver of cost increases. The expenditures were as follows: 9 EXPENDITURES 2002 2001 Current: General Government $ 10, 172. 983 $ 8,977,920 Security Of Persons And Property 24,926.075 23,596,319 Physical Environment 1,897, 165 1.878,916 Economic Environment 3,605,013 3.487,376 Mental And Physical Health 11.445 6,756 Culture and Recreation 903 177,039 Capital Outlay 24,221 141,210 Debt Service: Principal Retirement 0 0 Interest & Fiscal Charges 0 0 TOTAL EXPENDITURES ~40,637,805 $38,265,536 Special Revenue Funds: The Park, Library and Street Funds provide the next level of general services after the General Fund. Also, in this fund type is the Hotel/Motel Fund used for our marketing work. Debt Service Funds: With the exception of revenue bonds and other debt issued by Enterprise Funds, long-term debt is serviced through these types of funds. During 2002, the City collected $3 million dollars in property taxes and $336,000 from assessments for the payment of $3.1 million dollars in debt service annual requirements. The City issued a total of $15. 9 million in new debt in 2002. For the construction of the fire station, $3.9 million in debt was issued. To fund various water and sewer projects, $11.980 million of Revenue Bonds were issued. Capital Project Funds: The City has seven funds for capital improvements. In 2002, the City continued construction of a downtown parking garage. In the Capital Improvement Funds the City tracks all transportation capital improvements, park and general improvements. The most significant expenditure in 2002 was the construction of the parking garage, scheduled to open in mid 2003. Proprletarv Operations. Within these funds the activities the City provides are operated similar to a private function. The fees must cover the program costs and other revenue earned. The City owns and operates its own water utility. We do not purchase water from the City of Seattle like many of our neighbors. This one fund is the largest of all the proprietary funds. Further, this fund must cover the costs of all its capital requirements. The building of the water infrastructure is the one area that changes the most dramatically from year to year, depending on environmental requirements. Enterprise Funds: The Water Utility Fund had an operating income of $2.568 million dollars at the end of the year. Because of this cash surplus and the fact that 10 - - - - - - - - - ... ... - - - environmental requirements have added complexity to general project construction. we did not have to borrow any funds in 2002 to meet the fund's capital requirements. The City had no rate increases in 2002. Renton residents are also charged a monthly fee from King County for their costs in providing regional water treatment. The City is responsible for billing and collecting this fee for King County. The Airport had few fiscal issues in 2002. During the year, the Airport management focused completely on a citizen review of its long term operating plan. The Renton Airport is the home of every 737 and 757 maiden flight. In addition to that, we have many leases with small airplane owners. However, the airport sits in a prime location at the south end of Lake Washington and is surrounded by single-family homes. In 2001, the City began a review of a 20-year strategic plan for the site. It ended with a decision that as long as Boeing remains in our City, we will continue to operate the Airport basically the way it is today. In 2002. the City completed its second year in a new contract with a third party vendor for curbside collection of solid waste. yard waste and recycling. We ended the year with a fund equity of over $1.260 million. We did increase rates by five percent in 2002. However. we did shift responsibilities back onto the contractor in this new contract. and we are seeing a more stable revenue and expenditure stream now. The Maplewood Golf Course continues to exceed expectations. In 2002, the operations earned approximately $567,000 more than expenses. There were 63,581 rounds of golf and 95,051 buckets of balls sold. The income from the rental of golf and pull carts is a growing line of business that generated over $218,000 in 2002. Internal Service Funds: These funds are used to track the City's costs of certain activities. The Equipment Rental fund tracks the costs of maintaining the City's rolling stock. The City self-insures its employees' basic health, dental and industrial insurance costs. In addition to these costs. the Insurance Fund also pays for all liability claims up to a maximum of $250,000. If a claim is above this limit, the City has purchased various insurance coverages from independent brokers to cover such claims. In 2002, the City continued its focus on building reserves in the Equipment Rental and Insurance funds. We are building reserves in Equipment Rental to ensure the timely replacement of large rolling stock. We estimate that each year we spend $850,000 to $1,000.000 for regular cars and trucks. Each third year this amount will increase by $350,000 to $750,000 to purchase one or two large pieces of rolling stock. In 2002. we spent $400,000 on capital equipment . The Equipment Rental fund ended the year with $3 million in cash reserves for future replacements. The City is a participant in the Washington Cities Insurance Authority (WCIA). As stated earlier we have property and liability insurance with them. The City self-funds our routine health. dental and medication expenditures. In 2002, we continued to see 11 health care costs increase. Our first priority is to ensure those costs are met prior to adding any new programs. Finally, in 2002, the Mayor and Council again set aside an additional $2.1 million into the Insurance Fund as addition to our Rainy Day reserve. We began to see the economy slowing, and they wanted to make certain we had cash to address any short-term issues, if the economy entered a recession. Al the end of 2002, we had a $5.9 million fund equity. Flduclarv Fund Tyoes. In the City of Renton these funds include the Firemen's Pension Fund, Special Deposit Fund, and Payroll Clearing Fund. firemen's Pension fund: This fund must be maintained by the City to pay the retirement benefits for all fire officers who were employed prior to 1977. The City ended the year with over $9 million in assets to cover future costs. An actuarial study is conducted to determine the future needs of this fund. The City updated the biennial actuarial study for 2002. This study noted we would need less than $6.4 million for all costs. These investments are now invested in Federal Treasury instruments. Special Deposit fund: This is a holding fund for deposits and other special revenue. When the obligations of the receipts have been made, we release the monies. II is a small impact on our overall operations. Payroll Clearing fund: This fund is used to account for payroll liabilities outstanding at various times during a payroll cycle. Debt Administration. The ratio of net tax-supported bonded debt to assessed valuation and net tax-supported bonded debt per capita are useful indicators of the City's debt position. A comparison of these ratios follows. 2002 Net tax supported bonded debt $32,258.499 Net tax supported bonded debt per capita $599 Net tax supported bonded debt as a .583 percentage of assessed valuation. The City's latest bond issues were rated as follows: MOODY'S General Obligation Bonds (2002) N/A Water/Sewer Revenue Bonds (2002) N/A FITCH A+ AA- 2001 $27,586,389 $539 .543 STANDARD & POOR'S A+ A+ Cash Management and Investments. The City has an adopted Cash and Investments policy that states the primary objectives of cash and investment management in 12 - - - - - - - - - - - - ... - ... - - - priority order are safety, liquidity and return on investment. As of December 31, 2002 Renton had $82,667,988 in cash and investments. Risk Management. In late 1998 the City significantly changed its insurance strategy by joining the Washington Cities Insurance Authority (WCIA). The WCIA is a consortium of Washington State cities that purchases excess coverage in large blocks, thus leveraging the market. It has a professional staff, but is provided monthly oversight by a board made up of City representatives. In most cases the City has a deductible that ranges from $25,000 to a maximum of $250,000. In addition, the City purchases excess medical coverage from Safeco; and life and disability insurance from UNUM. Independent Audit The financial records, books of accounts and transactions of the City and its components for the fiscal year ended December 31, 2002. have been audited by the State of Washington Auditor's Office (SAO) as mandated by State law. Their opinion is included in the Financial Section of this report. The financial statements are the responsibility of the City. The responsibility of the SAO is to express an opinion on the City's financial statements based on their audit. An audit is conducted in accordance with generally accepted auditing standards. Those standards require that the audit be planned and performed in a manner to obtain a reasonable assurance as to whether the financial statements are free of material misstatement. Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report for the fiscal year ended December 31, 2001. In order to be awarded a Certificate of Excellence, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. the contents of which conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Excellence is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Excellence Program requirements and we are submitting it to GFOA to determine its eligibility for another certificate. Responsibility and Acknowledgement The Finance and Information Services Department prepared the Comprehensive Annual Financial Report for the fiscal year ended December 31. 2002. We believe that the information presented is accurate in all material respects and that this report fairly presents the financial position and results of operations of the various funds and account groups of the City. 13 The preparation of the Comprehensive Annual Financial Report results in the document here before you. However, without the dedication of staff both in the Finance Division and throughout all departments of the City, this Report would not be possible. The Report is completed in a timely manner by the Finance Division staff, led by Elaine Gregory, the City's Fiscal Services Director with her staff, Linda Dixon and Nancy Violante. DeAnna Fricke, the department's administrative lead, is charged with organizing the document for printing. I would like to express my appreciation, in particular, to my staff and then to all personnel throughout City Hall that ensure our financial records are maintained appropriately, timely and accurately every day of the year. Also, I would like to thank the Mayor and City Council for their continued interest and support in the financial operations of the City. Respectfully submitted, d~Ot. Victoria A. Runkle Finance & Information Services Administrator 14 - - - - -Certificate of Achievement -for Excellence in Financial -Reporting Presented to -City of Renton, Washington - For its Comprehensive Annual Financial Report -for the Fiscal Year Ended December 31, 2001 A Certificate of .Achievement for Excellence in Financial -Reporting Is presented by the Government Fmance Officen AssodaHon of the United States and Canada to government units and public employee retirement systems whose comprehensive annual _financial reports (CAFRa) achieve the hlghest -standards in government accounting and finandal reporting. -~~~ President .. ~/.~ .. J Executive Director - ... - - 15 CITY OF RENTON CORPORATE ORGANIZATION STRUCTURE RENTON CJ. I IZENS cnY COUNCll. MAYOR MUNICPAL COURT JtJDGE To11i Nelson -President, Kathy Kea Iker-Wheeler, Jesse Tanner Terry Juroclo Turi Briere. [)Qn Clawson, Rondy Corman, 425 -430-6!500 42!5.430.6550 King Parker,&. Oon Pers.son 42'!5 430-6!501 I CHIEF ADMINIST'll4TIVE OFFICBI: Jo.y CoYlngton 42!5 430-6500 • COMMl.ot«TY SERVICES P!.ANNING/BUlLO ECONOMIC DEV,~. ADMINlSTRA.nYE. JVb1CLU. 6 Jirn Shepherd, Adminlstrotor _,__ PUBUC WORIC5 A STAA.TEfiIC PLAN'llINfi -LEGAL 5BMCES 425 430-6600 Gregg Zhnrnerl!lal\, Administrator Sue Ccrl-.m, Administrator 425 430-6!!00 42!5 430-7394 42!5 430-6580 1 facilities I H Ocvcloprnent Suvlca I Economic Development I Mayor's Office OeMis Culp, Director Niel Watts, Director AleXQlldcr Picttch, Director Derek Todd i Recreation I H Trcrisporation Systems I Neighborhoods I City Clerk/Cable Man119er Sy Mo Allen, Director Son<kl #!eyer, Director Bonnie Walton 1 ·~"' I H Utility Systcml I Stratitglc Plannil'lg I Court S~lccs LuJle llctloch, birector LysHornsby, Director-Joe McGui,.e, Director H Libnry I y M.ointtftClllCt: SertiCU I -j Hcarl11g Examiner Clarie Peter.sen, Director Jock Crumley, Director Fred 1Ccwf111a11 ~ HumanSuvices I City Attomcy Karen MarthQJI Warrai ~Fontes, P.S. POI.ICE FIRE HUMAN RESOURCES a FINANCE' 6arry Anduson, O!itf -A. LH Whu!u, Chitf RI.SIC MANAGEMENT It#ORMA'TWN SERVICES -425 430-7507 425 430-7501 Mid10»tl Wehby, Adlninittrator Vittorio. Runkle. Administrator 425 430-7650 425 430-6858 4 OperatioM/Support I H Opl!l"'Otions I Risk Management I Fiscoil Strvleu Jouph Peor::h, Deputy Chitf Art Larson. Deputy Arc O,l&f Elaine 6regory, Director 4 Humcrt Resource! I Information ScrYieu 1 Patrol Operations I Supprusion I 4 ''"" & Moll Opuot;oM I Civ~ Service Commluion I 1 Patrol Services I y Administration/Support Scrvlcu I 6len 6orclon, Deputy Fire 0.lcf 1 InV1EStigations I H Tn:ining/Support I Servi ca ~ Adminl:rtrotivt: So:rYices I H Fire Prevention I ~ I Stoff Services y Emergency M~nt I So.fcty ~ Au){iliary So:rYica I 16 I I I I I I I Comprehensive · I • Report eP City of Renton, Washington . - - -Legislative Building PO Box 40021 Olympia. \\'ashington 98504-0021 Washington State Auditor Brian Sonntag (360) 902-0370 FAX (360) 753-0646 TDD Relay 1-800-833-6388 h11p.//\VWW.sao wa.gov -INDEPENDENT AUDITOR'S REPORT - ... - ... - July 25, 2003 The Honorabk! Mayor and City Council City of Renton Renton, Washington We have audited the accompanying general purpose financial statements of the City of Renton, King County, Washington, as of and for the year ended December 31, 2002, 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 financial audrt in accordance wrth governmental auditing standards generally accepted in the United States of America, issued by the Comptroller General of the Unrted States of America. Those standards require that we plan and perform the audrt 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 resutts 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 general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Renton, King County, Washington, as of December 31, 2002, and the changes in financial position and cash flows, where applicable, thereof, for the year then ended in conformrty with accounting principles generally accepted in -the United States of America. - - - - - - - - As described in Note 11, during the year ended December 31, 2002, the Crty has implemented Governmental Accounting Standard's Board Statement 33, Accounting and Financial Reporting for Non-exchange Transactions In accordance with Government Audffing Standards in the United States of America, we will also issue our report on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction wrth this report in considering the results of our audit. Our audit was conducted 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 add~ional analysis and are not a required part of the general purpose financial statements of the City of Renton, King County, Washington. Such information has been subjected to aud~ing procedures applied in the audrt 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 audrted by us and, accordingly, we express no opinion on such data. Sincerely, BRIAN SONNTAG, CGFM ~TATE AUDITOR 17 THIS PAGE INTENTIONALLY LEFT BLANK 18 2 i i I Report ~~ City of Renton 1 Washington - - - - - - - - - - - - - - - - - - - GENERAL PURPOSE FINANCIAL STATEMENTS DECEMBER 31, 2002 The General Purpose Financial Statements are the combined financial statements that, together with the accompanying notes, constitute the minimum financial reporting needed for fair presentation in conformity with Generally Accepted Accounting Principles. 19 COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31. 2J02 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 1 OF 2;1 GOVERNMENTAL FUND TYPES SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECTS ASSETS: Cash and Cash Equivalents -Note 3 $ 2,129,525 $ 2.788.230 $ 1,547,629 $ 24,559,086 Cash With Fiscal Agent 0 0 159,000 0 Investments at Fair Value -Note 3 2.000.<XXJ 600,000 444,870 10.207.068 Receivables, Net of Allowance for Uncollectibles-Note 5: 4,867,507 140,600 436, 176 481.624 Due From Other Funds -Note 5 76 29.225 400 0 Due From Other Governmental Units -Note 5 30,690 64.683 0 1.339.058 Inventory of Material and Supplies -Note 1 0 0 0 0 Prepaid Items -Note 8 B.<XXJ 0 0 0 Investment in Joint Venture. Note 9 0 0 0 0 Restricted Assets: Deposits 0 0 0 0 Revenue Bond Debt Service 0 0 0 0 lntertund Loans/ Advances. Non-Current · Note 5 75.CXXJ 0 0 1.260.000 Fixed Assets (Net) • Note 1 & 7 0 0 0 0 Construction In Progress -Note 7 0 0 0 0 Deferred Charges and Other Assets -Note 14 0 0 0 0 Available in Debt Service & Capitol Project Funds 0 0 0 0 Amount To Be Provided Long Term Debt Retirement 0 0 0 0 TOTAL ASSETS $ 2l!QZ2a $ ~ ~'' Z;3§ $ '~QZ~ $ ~z a~" a~" LIABILITIES. EQUITY AND OTHER CREDITS: LIABILITIES: Vouchers/Contracts Payable $ 208,130 $ 89,560 $ 0 $ 987.152 Retainage Payable 0 0 0 545.266 Due To Other Funds -Note 5 400 0 0 23.902 Due To Other Governmental Units -Note 5 1.435,890 0 0 0 Payables -Note 5 4.972 5,337 159.000 27.878 Deferred Revenues 3,229,!131 0 398.740 0 Liabiltles Payable from Restricted Assets: Deposits Payable 0 0 0 0 Capital leases Payable-Current-Note 13 0 0 0 0 Revenue Bonds Payable-Current Portion-Note 13 0 0 0 0 Deposits Payable 165'05 21.200 0 0 General Obligation Bonds Payable -Note 13 0 0 0 0 Special Assessment Debt With Government Commitment 0 0 0 0 Revenue Bonds Payable -Note 13 0 0 0 0 Unamortized Discounts on Revenue Bond 0 0 0 0 Accrued Employee Leave Benefits -Note 1 & 13 211,E:34 70.112 0 0 lnterfund Loans/ Advances -Non-Current -Note 5 0 75,000 0 1,260,000 Claims Incurred But Not Reported -Nole 18 0 0 0 0 Capital Leases Payable -Note 13 0 0 0 0 Installment Purchase Contracts -Note 13 0 0 0 0 Public Works Trust Fund Loon Payable -Note 13 0 0 0 0 Deferred Revenues 0 0 0 0 TOTAL LIABILITIES 5.107.662 261,209 557.740 2.844.198 FUND EQUITY AND OTHER CREDITS: Fund Balance: Reserved -Note l & 15 83.000 0 2,030,335 1.260,000 Unreserved-Designated-Note 15 171.205 0 0 0 Unreserved -Undesignated 3.748,931 3.361.529 0 33.742,638 Contributed Capitol -Note 7 0 0 0 0 Retained Earnings: Reserved -Note 1 & 15 0 0 0 0 Unreserved 0 0 0 0 Investments in Joint Venture/General Fixed Assets 0 0 0 0 TOTAL FUND EQUITY AND OTHER CREDITS 4.003.136 3.361.529 2,030,335 35.002,638 TOTAL LIABILITIES, EQUITY AND OTHER CREDITS $ 9.110798 $ 3.622 738 $ 2,588,075 $ 37,846,836 THE ACCOMPANY/HG NOTES ARE AH INTEGRAL PAIT Of THIS STATEMENT 20 -COMBINED BALANCE SHEET -All FUND TYPES AND ACCOUNT GROUPS DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE20F2) -PROPRIETARY FUND TYPES FIDUCIARY ACCOUNT GROUPS COMPARATIVE TOTALS INTERNAL TRUST GENERAL GENERAL LONG (MEMORANDUM ONLY) ENTERPRISE SERVICE AND AGENCY FIXED ASSETS TERM DEBT 2002 2001 -$ 5.801, 125 $ 9.101.124 $ 3,795.029 $ 0 $ 0 $ 49,721,748 $ 60, 174.343 0 0 0 0 0 159,000 292,000 B.366.250 2.296.500 4.324,771 0 0 28.239,459 8.918,867 -5.185.080 134.705 1,339,443 0 0 12,585, 135 11,628.642 45.505 0 0 0 0 75.206 135,730 366,588 0 0 0 0 1.801,019 2.663.996 381,693 0 0 0 0 381,693 463.440 -0 87,652 0 0 0 95,652 11.000 0 0 0 4,588,444 0 4,588,444 4.087.259 0 0 0 0 0 0 25.43'1 -4.706,781 0 0 0 0 4,706,781 4.674,028 0 0 0 0 0 1.335.000 995,000 178.966.277 5.040,668 0 127 ,553, 155 0 311,560.100 295.745,716 3.485.247 0 0 11,474,723 0 14,959,970 9,668,627 279,119 0 0 0 0 279,119 94,464 -0 0 0 0 2.030,335 2.030.335 2.546,129 0 0 0 0 36,093.823 36,093,823 31.103.773 $ 2QZ §83 665 $ 16 669 649 $ 9 459 243 $ 143 616 322 $ 38124 158 $ 468 612 484 $ wpew - 663,964 $ 213,546 $ 1.428 $ 0 $ 0 $ 2.163.780 $ 3.486.133 133,672 0 0 0 0 678,938 607.205 -50,904 0 0 0 0 75.206 135.729 726.743 0 0 0 0 2, 162.633 1.837.583 406.418 3,351 144 0 0 607.100 743.994 36.326 0 0 0 0 3,664,597 3.945.042 100,203 50,547 0 0 0 150.750 100,298 0 0 0 0 0 0 38.418 1,870.000 0 0 0 0 1,870.000 2.030.000 0 0 268,767 0 0 306,872 560,806 -0 0 0 0 33.629,583 33,629.583 29.095,583 0 0 0 0 0 0 135.000 29.360.000 0 0 0 0 29,360,000 21.040,000 (1.129,585) 0 0 0 0 (1, 129,585) I 1.238.1501 -459,619 42,794 0 0 4,327.135 5,111,494 4.949,417 0 0 0 0 0 1.335.000 995,000 0 1,880,505 0 0 0 1,880,505 1.509,544 7.238 0 0 0 0 7,238 7.238 .. 0 0 0 0 167,440 167,440 193.708 7,495.393 0 0 0 0 7.495.393 7,389.550 183,469 0 0 0 0 183.469 0 40,364,364 2.190,743 270.339 0 38.124, 158 89,720,413 77.562.098 - 0 0 8,220,452 0 0 11,593,787 12.004,634 0 0 0 0 0 171,205 130,3'11 -0 0 0 0 0 40,853,098 40.369,626 116.224,690 2,277,242 0 0 0 118,501,932 118.507.067 10.114.795 0 0 0 0 10.114,795 8.624.119 -40,879,816 12.192,664 0 0 0 53,072.480 41.768,385 0 0 968,452 143.616,322 0 144,584.77 4 134.262, l 33 167.219.301 14,469.906 9,188,904 143.616.322 0 378,892.071 355.666.355 $ 207.583,665 $ 16,660 649 $ 9,459 243 $ 143,616.322 $ 38 124.158 $ 468,612 484 $ 433.228,453 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT - -21 COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR All GOVERNMENTAL FUND TYPES YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 1OF1) GOVERNMENTAL FUND TYPES COMPARATIVE TOTALS SPECIAL DEBT CAPITAL (MEMORANDUM ONLY) GENERAL REVENUE SERVICE PROJECTS 2002 2001 REVENUES Taxes $ 32.014.248 $ 13,714,542 :~ 2,781,727 $ 1,245,330 $ 49,755,847 $ 50, 126,406 licenses And Permits 2.371.596 35.644 0 1,790,946 4.198, 186 4,118,604 Intergovernmental Revenues 1.941,063 1.385.567 0 2,529,357 5,855,987 5,790,S58 Charges For Services 4,121,870 2.183.634 0 J,978,294 8,283,798 7,309,978 Fines And Forfeits 948,861 38,306 0 0 987.167 978,717 lnterfund Revenues 0 0 0 55,200 55.200 103.800 Special Assessments 0 0 336.239 0 336.239 303.939 Contributions 40.133 82.771 0 39.788 162,692 191.877 Interest 555.023 157,765 107,994 1,310,551 2,131.333 2.303.752 Miscellaneous Revenues 70,013 20,367 0 458,014 548,394 1 280,088 TOTAL REVENUES 42,062.807 17 618,596 3 225,960 9 407.480 72 314,843 72,507.719 EXPENDITURES Current: General Government 10.172.983 2,222,956 0 129,112 12,525,051 11.191,~.14 Security Of Persons And Property 24.926,075 0 0 0 24.926,075 23,596,319 Physical Environment 1,897.165 0 0 0 1,897.165 1,878.916 Transportation 0 5,642,823 0 137,330 5,780, 153 13,875,758 Economic Environment 3,605,013 1.047,810 0 42,075 4,694,898 4,486,587 Mental And Physical Health 11.445 0 0 0 11,445 6.756 Culture and Recreation 903 7,380,432 0 0 7,381.335 7.260.078 Capitol Outlay 24.221 36.757 0 15, 107,666 15,168,644 5,376,821 Debt Service: Principal Retirement 0 0 1.849.269 0 1,849,269 2,086.447 Interest & Fiscal Charges 0 0 1 254,031 128.687 1,382.718 1,206,275 TOT Al EXPENDITURES 40,637.805 16 330.778 3,103,300 15 544.870 75 616,753 70,965.571 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 1.425,002 1 287,818 122,660 16,137,3901 13,301.9101 1,542.148 OTHER FINANCING SOURCES (USES) Proceeds Of long-Term Debt 0 0 0 3,879.038 3,879,038 20,052,641 Operating Transfers In 0 14,192 830.759 8,596.500 9,441.451 6,850.944 Operating Transfers (Out} (4,273.059) (2.878.500) 11.469.211 J (l ,389.192) (10,009.962) (8.873,294) Sale Of General Fixed Assets 104.825 0 0 0 104,825 61,685 Funds Remitted to Bond Trustee 0 0 0 0 0 jl3,809.43ll TOTAL OTHER FINANCING SOURCES (USES) j4.168.2341 j2.864.3081 j638.4521 11,086,346 3,415,352 4 282,545 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES 12.7 43.2321 jl.576.4901 j515.7921 4,948,956 113,442 5,824,693 FUND BALANCE JANUARY l 6,746,368 4 938.021 2 546.129 30,053.681 44,284, 199 38,459,506 FUND BALANCE DECEMBER 31 $ ~~lJ~ $ aJ~l ~l $ ~WQJJZ $ J:Z QQ~ ~JZ $ ~J2Z~l $ ~2a~l22 THE ACCOMPANYING NOTES ARE AN INTEGRAi. PART OF THIS STATEMENT 22 -COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES, BUDGET AND ACTUAL GENERAL. SPECIAL REVENUE, DEBT SERVICE, AND CAPITAL PROJECTS FUND TYPES YEAR ENDED DECEMBER 31, 2002 -WITH COMPARATIVE ACTUAL TOTALS FOR YEAR ENDED DECEMBER 31, 2001 (PAGE 1OF4) GENERAL FUND -VARIANCE FAVORABLE BUDGET ACTUAL <UNFAVORABLE> -REVENUES Taxes $ 32.987.200 $ 32.055.823 $ (931,377) Licenses And Permits 1.734.400 2.414.304 679,904 Intergovernmental Revenues 2,064,200 2, 145,773 81,573 Charges For Services 3.758.500 4, 169,406 410,906 -Fines And Forfeits 854,600 1.004.893 150.293 Special Assessments 0 0 0 Contributions 5.000 40.133 35.133 Interest 719,400 444,484 (274.916) Miscellaneous Revenues 25.000 63948 38948 -TOTAL REVENUES 42, 148 300 42 338 764 190 464 EXPENDITURES Current: -General Government 9.725.797 10,171,520 (445,723) Security Of Persons And Property 25.439.000 24,924,380 514,620 Physical Environment 2.052.200 1.898.665 153,535 Transportation 0 0 0 Economic Environment 4.037.721 3.604.368 433.353 -Mental And Physical Health 10,600 11.445 {845) Culture and Recreation 0 977 {977) Capitol Outlay 88.000 24,878 63,122 Debt Service: Principal Retirement 0 0 0 -Interest & Fiscal Charges 0 0 0 TOTAL EXPENDITURES 41,353,318 40,636,233 717085 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 794 982 1 702 531 1526,6211 - OTHER FINANCING SOURCES (USES) Proceeds Of Long-Term Debt 0 0 0 lnterfund Loan Proceeds 0 0 0 -lnterfund Loan Repayments 0 0 0 Operating Transfers In 0 0 0 Operating Transfers {Out) {4.273.058) (4.273.059} 111 Sale Of General Fixed Assets 0 104 825 104 825 TOTAL OTHER FINANCING SOURCES (USES) (4,273,0581 (4, 168,2341 104 824 -EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (3,478,Q761 (2,465,7031 !42ll971 -FUND BALANCE JANUARY 1 6,255,515 6255515 0 FUND BALANCE DECEMBER 31 $ 2 zzz f32 $ ~zag QQS $ l~21 Z2ZI THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF JHIS STATEMENT - - - - 23 - COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES. BUDGET AND ACTUAL GENERAL SPECIAL REVENUE, DEBT SERVICE, AND CAPITAL PROJECTS FUND TYPES YEAR ENDED DECEMBER 31. 2002 WITH COMPARATIVE ACTUAL TOTALS FOR YEAR ENDED DECEMBER 31, 2001 (PAGE 20F 4) SPECIAL REVENUE FUND TYPES VARIANCE FAVORABLE BUDGET ACTUAL <UNFAVORABLE> REVENUES Taxes $ 13,678,800 $ 13.714.542 $ 35,742 Licenses And Permits 30.000 24.306 (5.694) Intergovernmental Revenues 1.373.500 1,377,423 3,923 Charges For Services 1,778,700 1.646.406 fl 32.2'14) Fines And Forfeits 29.000 38,306 9,306 Special Assessments 0 0 0 Contributions 1.500 22.770 78.171 Interest 36,100 77.463 41.363 Miscellaneous Revenues 483,500 611 836 71 435 TOTAL REVENUES 17 411 100 17.513.052 101 952 EXPENDITURES Current: General Government 2,437,000 2.222.945 214.055 Security Of Persons And Property 0 0 0 Physical Environment 0 0 0 Transportation 6.104.100 5,642,278 461,822 Economic Environment 1,193,138 1,047,866 117.708 Mental And Physical Health 0 0 0 Culture and Recreation 7.556.922 7,381,092 175.830 Capital Outlay 89.000 23.833 52,167 Debt Service: Principal Retirement 0 0 0 Interest & Fiscal Charges 0 0 0 TOTAL EXPENDITURES 17,380, 160 16318014 l 021 582 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 30940 l 195 038 [919,6301 OTHER FINANCING SOURCES (USES) Proceeds Of Long-Term Debt 0 0 0 lnterfund Loan Proceeds 0 0 0 lnterfund Loan Repayments 0 0 0 Operating Transfers In 0 14,192 14,192 Operating Transfers {Out) (2.878.500) 12.878.500) 0 Sale Of General Fixed Assets 0 0 0 TOTAL OTHER FINANCING SOURCES (USES) [z.878,5001 [2,864,3081 14192 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES [2,847,5601 [l ,669,2701 [905,4381 FUND BALANCE JANUARY 1 4 780817 4.780817 0 FUND BALANCE DECEMBER 31 $ l 2JJ 2~Z $ J 111 ~z $ !2!Ji:i~I THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT 24 ----------------------------------~------- - -COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES. BUDGET AND ACTUAL GENERAL SPECIAL REVENUE, DEBT SERVICE. AND CAPITAL PROJECTS FUND TYPES YEAR ENDED DECEMBER 31, 2002 -WITH COMPARATIVE ACTUAL TOTALS FOR YEAR ENDED DECEMBER 31, 2001 (PAGE30F 4) DEBT SERVICE FUND TYPES CAPITAL PROJECTS FUND TYPES -VARIANCE VARIANCE FAVORABLE FAVORABLE BUDGET ACTUAL <UNFAVORABLE> BUDGET ACTUAL <UNFAVORABLE> -$ 2,372,200 $ 2,833,822 $ 461.622 $ 850,000 $ 1.297,662 $ 447,662 0 0 0 2,000,000 1.790,891 (209, 1091 0 0 0 2,313.800 2,689, 163 375,363 0 0 0 750,000 1,961,966 1,211.966 -0 0 0 0 0 0 293,000 312,908 19,908 0 0 0 0 0 0 0 55,200 55,200 393,230 107,147 (286,083} 700,IXX) 444,444 {255,5561 0 0 0 490 400 523062 32 662 -3 058 430 3 253 877 195 447 7 104 200 8 762 388 1.658 lBB -0 0 0 159.200 129,112 30,088 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7,562,800 4.765,368 2.797,432 0 0 0 90,000 42,075 47,925 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 29,572.021 10.470.843 19,101,176 1,859,300 1,849,269 10,031 0 0 0 .... 1 274 700 1,254,Q;JQ OQ,670 80,QQQ 128 687 148,6871 3134000 3 103 299 30701 37 464 021 15,536,085 21 927 936 175,5701 150578 164 746 (30,359,8211 (6,773 6971 120,269 7481 0 0 0 3,895,000 3,879,038 115.9621 0 0 0 600,000 860,000 260,000 -0 0 0 (615.2001 1860,0001 1244,8001 77,700 830,759 753.059 8.983.700 8.596,500 1387,2001 11.481,4071 11.469.211 J 112,1931 11.762,2001 {1.389, 192} 373,008 0 0 0 0 0 0 11 ,403,7071 1638,4521 740863 11 101 300 11,086,346 114,9541 - ll,479,2771 1487,8741 jfil,609 j19,258,5211 4312649 120,284,7021 -2!4~7,555 2,457,555 0 28 137,837 28 137 837 0 $ 2za 2za $ 2'2:ia 2~ $ 2Ci5 6'22 $ aazi~iti $ a2~~ti $ t2Q 2li~ ZQ21 THE ACCOMPANYING NOTES ARE AN INJFGRAL PART OF THIS STATEMENT - - .... 25 COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES. BUDGET AND ACTUAL GENERAL SPECIAL REVENUE, DEBT SERVICE, AND CAPITAL PROJECTS FUt~D TYPES YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE ACTUAL TOTALS FOR YEAR ENDED DECEMBER 31, 2001 (PAGE40F4) COMPARATIVE TOTALS {MEMORANDUM ONLY) VARIANCE FAVORABLE 2001 BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES Taxes $ 49,88B.200 $ 49,901.849 $ 13,649 $ 50.21B.530 licenses And Permits 3.764,400 4,229,501 465,101 4.065.518 Intergovernmental Revenues 5,751,500 6,212,359 460,859 6,129.103 Charges For Services 6,287.200 7,777,778 1.490.578 7.301.538 Fines And Forfeits 883.600 1,043, 199 159.599 993.093 Special Assessments 293,000 312,908 19,908 333.056 Contributions 6,500 118,103 111.603 191,877 Interest 1,848.730 1.073,538 (775.192) 2,583.931 Miscellaneous Revenues 99B 900 1 198 846 199 946 I 231 574 TOTAL REVENUES 69,722.030 71,868,081 2146051 73,048,220 EXPENDITURES Current: General Government 12,321,997 12.523,577 (201,580) 11. 193.462 Security Of Persons And Property 25,439,000 24,924,380 514,620 23,569,864 Physical Environment 2.052.200 1,898,665 153,535 1,878.956 Transportation 13,942.838 10.622.373 3,320.465 13,885,329 Economic Environment 5.044.921 4,479,582 565.339 4,484.526 Mental And Physical Health 10.600 11.445 (845) 6.756 Culture and Recreation 7.556,922 7,382,069 174,853 7.263.056 Capital Outlay 29.749.021 10,532.479 19.216,542 5.359.801 Debt Service: Principal Retirement 1.859.300 1.849,269 10,031 2,086.447 Interest & Fiscal Charges 1 354 700 1382717 128,0171 88i,748 TOT Al EXPENDITURES 99 331 499 75,606,556 23 724 943 70 610 945 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES !29 609,4691 !3,738,4751 !21,578,8921 2 437 275 OTHER FINANCING SOURCES (USES) Proceeds Of Long-Term Debt 3.970,000 3.879.038 (90,962) 6.023.484 lnterfund Loon Proceeds 600.000 B60.000 260.000 363.800 lnterfund Loon Repayments 1615.200) (860.000) (244.800) (363.800) Operating Transfers In 9,061.400 9,441,451 380.051 6.850.944 Operating Transfers (Out) (10.395. 165) (10.009.962) 385.203 (8.873.294) Sale Of General Fixed Assets 0 104 825 104 825 61 685 TOTAL OTHER FINANCING SOURCES (USES) 2,621,035 3,415,352 794317 4.06i,819 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES !26,988,4341 j323,1231 120,784,5751 6,500,094 FUND BALANCE JANUARY 1 41 631 724 41,631,724 0 35, 131,630 FUND BALANCE DECEMBER 31 $ ]~~32fQ $ ~l iX!a~l $ l2ll Ztli :2Z:21 $ ~l ~I Z2~ JHE ACCOMPANYING NOTES ARE AN INTEGRAL l'AllT OF THIS STATEMENT 26 - COMBINED STATEMENT OF REVENUES, EXPENSES. AND CHANGES IN FUND EQUITY ALL PROPRIETARY FUND TYPES -FOR THE YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 1OF1) -PROPRIETARY FUND TYPES COMPARATIVE TOTALS INTERNAL (MEMORANDUM ONLY) ENTERPRISE SERVICE 2002 2001 -OPERATING REVENUES: Charges for Services $ 33,630,556 $ 10,280,677 $ 43.911,233 $ 41,719,360 Interdepartmental Services 1,679,290 1,679,290 Other Operating Revenue 186,224 0 186,224 1.414,961 -TOTAL OPERATING REVENUE 35.496,070 10.280,677 45,776.747 43,134,321 OPERATING EXPENSES: Operations and Maintenance 22.-485, 103 \,504.692 23.989,795 23.480,492 Benefit Payments 0 6,453,274 6.453.274 6,050,784 -Professional Services 0 448.322 448,322 402,684 Administrative and General 2.682,862 406,353 3.089,215 2,497,718 Insurance 24.317 435,099 459,-416 444.931 Taxes 2,843.770 0 2,843,770 2,826,387 -Depreciation 4,194,376 860,873 5,055,249 5,243,380 TOTAL OPERATING EXPENSES 32,230,428 10,108.613 42.339,041 40,946,376 OPERATING INCOME (LOSS) 3.265,642 172,064 3.437,706 2,187,945 -NON-OPERATING REVENUE (EXPENSE): Interest Revenue 328,299 232,692 560,991 932,010 Gain (Loss} on Sale of Assets 0 (9,307) (9,307) (42,273) -Other Non-operating Revenue (Expense) 165,915 346,537 512,452 212,045 Interest Expense (1,392.727) 0 I 1,392.7271 (1.354,657) Amortization of Debt Discount and Expense 183,3991 0 183,3991 (77,1661 NON-OPERA TING REVENUE NET OF EXPENSES (981.9121 569,922 (411.9901 (330,0411 -INCOME (LOSS) BEFORE CONTRIBUTlONS ANO TRANSFERS 2,283.730 741.986 3.025,716 1.857,904 Contributed Capital 9.'205,677 (5.135) 9,200,542 167,010 -Operating Transfers In (Out) (10,079) 578,590 568,511 2.022,350 NET INCOME (LOSS) 11,479,328 1.315.441 12,794.769 4,047,264 -RETAINED EARNINGS, JANUARY 1 39,515,281 10,877.223 50,392.504 46,345,240 RETAINED EARNINGS, DECEMBER 31 50,994,609 12, 192,664 63, 187,273 50,392,504 -FUND EQUITY, DECEMBER 31 ~22S 6!J2 12122gg~ 6J,]§Z 2ZJ ~J22~S JHE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF 1HIS STATEMENT - - ... - - 27 COMBINED STATEMENT OF CASH FLOWS-AU. PROPRIETARY FUND TYPES FOR THE YEAR ENDED DECEM~·ER 31. 2002 WJTH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 1OF2) PROPRIETARY FUND TYPES COMPARATIVE TOTALS INTERNAL (MEMORANDUM ONLY) ENTERPl~ISE SERVICE 2002 2001 CASH FLOWS FROM OPERA TING ACTIVITIES: Cash Received From Customers $ 33,791,638 $ 0 $ 33.791,638 $ 30,781,170 Cash Received From Other Funds for Goods and Services 0 10,272,824 10,272,824 10,308,500 Cash Payments to Suppliers for Goods and Services (25,638,790) (8,349,247) (33,988,037) (25.496,686) Cash Paid to Other Funds for Goods and Services 0 0 0 (4,021.681) Cash Paid to Employees (2,682,862) (406,351) (3,089,213) (4,573,004) Cash Paid for Taxes 0 0 0 (1,691,312) Other Operating Receipts 1,865,514 0 J,865,514 1,414,961 Other Non-Operating Receipts 0 0 0 244,679 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 7,335,500 1,517,226 8.852,726 6,966,627 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating Transfers From Other Funds 0 0 0 2, 100,000 Operating Transfers To Other Funds 0 0 0 (77,650) NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES 0 0 0 2,022,350 CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: Proceeds From Sale of Equipment 0 0 0 (18,999) Acquisition and Construction of Capital Assets (342,697) (252,735) (595,432) (16,013,055) Capital Contributions 0 0 0 7,395,079 Capital Grants 121,158 0 121,158 53,030 Principal Payments on Bonds (170,000) 0 (170,000) (1,990,954) Interest Payments on Bonds 0 0 0 I 1.341.732) Payments on State Long-Term Loons 0 0 0 (821.592) NET CASH PROVIDED (USED) BY CAPITAL FINANCING ACTIVITIES 1391.539) 1252,735) 1644,274) (12.738,223) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds From Sole of Investments 0 0 0 13,958.023 Payments for Investments (8,366,250) (304,700) (8,670,950) (6,882,310) Interest on Investments 396,466 315,808 712,274 1,094,082 NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES 17,969.7841 11,108 17,958,6761 a, 169.795 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS p ,007, 9651 1,275,599 267,634 4.420,549 CASH AND CASH EQUIVALENTS, JANUARY 1 6,809,090 7,825,525 14,634,615 14,913,533 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ ~~l 12~ $ 2 HJI 12~ $ ]~ 2Q2 2~2 $ '2 334 ()82 CASH AT THE END OF THE YEAR CONSISTS OF: Cash and Cash Equivalents $ 5,801.125 $ 9,101,124 $ 14,902,249 $ 14,634,615 Cash Restricted for: Deposits 0 0 0 25,439 Revenue Bond Debi Service 4,265,423 0 4,265,423 4,674,028 TOTAL CASH AT THE END OF THE YEAR $ JQQQ~ ~~ $ 2 JQI 12~ $ 12 l~Z 6Z2 $ 12 334 !Ja2 THE ACCOMPANYING NOTES ARE AN INrEGRAL PART OF THIS STATEMENT 28 - COMBINED STATEMENT OF CASH FLOWS-All PROPRIETARY FUND TYPES FOR THE YEAR ENDED DECEMBER 31, 2002 -WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 2 OF 21 PROPRIETARY FUND TYPES COMPARATIVE TOTALS -INTERNAL (MEMORANDUM ONLY) ENTERPRISE SERVICE 2002 2001 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH -PROVIDED (USED) BY OPERATING ACTIVITIES: Operating Income (Loss) $ 3,265,642 $ 172,064 $ 3.437,706 $ 2, 187,945 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) By Operating Activities: Depreciation and Amortization of Deferred Charge 4, 194,376 860,873 5,055,249 5,259.380 ... Other Non-Operating Revenue 0 0 0 212,045 (Increase) Decrease in Accounts Receivable (359,627) (7,8531 (367,4801 (614,859) (Increase) Decrease in Due From Other Funds/Governmental 520,709 0 520,709 49,398 (Increase) Decrease in Inventory/Prepaid Items 0 0 0 27,103 ... Increase (Decrease) in Vouchers/Contracts/Retainage Payable (696,0261 125,071 (570,9551 61,494 Increase (Decrease) in Due to Other Funds/Governmental 264,585 183 264,768 6,851 Increase {Decrease) in Payables/Other Short Term Liabilities 25,826 (7,769) 18,057 28,375 Increase {Decrease) In Customer Deposits 0 0 0 (5,417) -Increase (Decrease) in Deferred Revenues 67,549 0 67,549 (19,269) Increase (Decrease) in Accrued Employee Leave Benefits 52.466 3,696 56,162 26,001 Increase (Decrease) in Claims Incurred But Not Reported 0 370,961 370,961 (252.4201 Total Adjustments 4,069,858 1,345,162 5.415,020 4.778,682 - NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 7 335 500 $ 1517226 $ a 852 726 $ 6 966 627 ... SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES: Fixed Assets Contributed By Developers $ 9,054,627 $ 0 $ 9,054,627 $ 5,969,070 Change in Fair Value of Investments 6,666,250 304,700 6,970,950 149,160 -TOTAL NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES $ l:i z22azz $ JQ~ ZQQ $ 16 Q2:i ~zz $ 6lH~~ THE ACCOMPANYING NOTES ARE AN INl'EGRAL PART OF THIS STATEMENI' - ... - - - - - -29 ADDITIONS: Others Contributions: FIREMEN'S PENSION TRUST FUND STATEMENT OF CHANGES IN PLAN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2002 AND 200 I (PAGE 1OF1) Fire Insurance Premiums $ Investment Income: Interest Revenue TOT AL ADDITIONS DEDUCTIONS: Benefit Payments Administrative and General TOTAL DEDUCTIONS NET INCREASE (DECREASE) FUND BALANCE RESERVED FOR EMPLOYEES' PENSION BENEFITS: FUND BALANCE JANUARY 1 FUND BALANCE DECEMBER 31 $ 2002 55,730 1,252.935 1.308.665 333.706 6.507 340.213 968.452 B.220.452 21~~ THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMEHr 30 2001 $ 50.703 459,697 510.400 323.128 13,040 336.168 174.232 8.046,220 $ i,;i ,,Q ~:2' - - ... - - - - - - - - - - ... - - NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 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 Slate 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 Rnancial 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. 31 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 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, ond net income for capital maintenance, public policy, management controls, and accountabilily. 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. 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 cmd Accounting Research Bulletins issued on or before November 30, 19B9, unless they conflict wilh 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 cill 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. 32 - ... - - - - - - - - ... - - - - NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 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. lnterfund 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. Modified 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 al year-end that are received in January for the prior year's levy are recorded as revenue. The 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 Debi Account Group, except for long-term liabilities accounted for in the Proprietary Funds. 33 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 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. 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 BUDGElARY ACCOUNTING The City of Renton budgets its funds in accordance with the Revised Code of Washington (RCW) 3SA.33. In compliance with the Code, annual appropriated budgets are adopted for the General, Special Revenue, Debi 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. Budgets are not prepared under GAAP basis accounting, therefore, any comparisons between budget and actual revenues and expenditures are reported under the budgetary basis term of accounting. The annual budget is proposed by the Mayor and adopted by the City Council with legal budgetary control at the fund level, i.e., expenditures cmd other financing uses may not exceed budgeted appropriations 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 3SA.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 cidjustments 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 legal authority to increase or decrease a given fund's annual budget. This is accomplished by City ordinance. The budget was amended five times during 2002. Budget amounts presented in the basic financial statements include the original amounts, after all transfers and adjustments, as approved by the City Council. 34 ... ... ... ... ... - - - - - - - - - - - - Encumbrances NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 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 . ASSETS, LIABILITIES AND FUND EQUITY Cash & 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 lo 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 fair value as required by the Governmental Accounting Standards Board (GASB) Statement No. 31. Washington Slate 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 percent 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. 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 percent of fair market value. A revaluation of all property is required every two years, however King County has the ability to revalue annually. 35 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 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 moy be poid in two equal installments if the total amount exceeds $30. The first half of real property taxes is due on April 30 and the balance is due October 31. Delinquent taxes bear interest at the rate of 12 percent and ore subject to additional penalties if not paid as scheduled. At year-end, property taxes are recorded as a receivoble with the portion not expected to be collected within 30 days offset by deferred revenue. During the year, property tax revenues ore recognized when cash is received. The tax rote for general City operations is limited to $3.35 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 ore 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 2002. the City levied $3.26036 per lo 1.000 of assessed valuation for general purposes. State law also provides that the City's operating levy may not exceed l 06 percent 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 ond all taxing entities, including the City, shall not in any year exceed 1 percent ($1 O per thousand dollars) of the true and fair monetary value of such property. This limitation may be exceeded upon the approval of 60 percent of the City voters at an election in which the total vote exceeds 40 percent of the votes cast at the last preceding general election. For 2002, the City's general tax levy was $3.26036 and the excess levy for Unlimited General Obligation Bonds issued for the construction of Senior Housing was $0.09397. A total of $3.35433 per $1.000 on a total assessed valuation of $5,593,880.488 per the King County Assessor's 2002 Annual Report. Estimated and actual property tax revenue is compared in the following table: TABLE 1: PROPERTY TAX LEVY ESTIMATED ACTUAL ITEM PROPERTY TAXES PROPERTY TAXES VARIANCE General Levy $ 18,238.064 $ 17,858.786 $ (379.278) Excess Levy 525.657 514,451 (11.206) TOTAL s 18,763,721 s 18,373,237 s (390,484) Assessments Receivable Unpaid special assessments receivable is reported in three accounts: current, delinquent, and deferred. Current assessments are those due within one month; delinquent assessments ore 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. 36 - - - - - - - - - - - - - - ... ... - - - NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 Fixed Assets and Depreciation The capitalization threshold applied to the City's fixed assets is $5,000. The accounting and reporting treatment applied to the fixed assets associated with a fund ore determined by its measurement focus. Fixed assets acquired in Governmental Funds are accounted for as expenditures in the fund when the assets ore 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 roods, bridges and curbs ore considered public property and ore not capitalized in the General Fixed Assets Account Group. Governmental Fund assets ore not depreciated. Fixed assets of the Enterprise and Internal Service Funds ore recorded at historical cost, and are accounted for in their respective funds. Capitol contributions ore recorded as contributed capitol and the assets ore capitalized at their estimated fair market value at the date of donation. Fixed assets used by Proprietary Funds ore depreciated and the accumulated depreciation is reported in Proprietary Fund Balance Sheets. Annual depreciation is recorded as on 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 Building Non Buildng Improvement Utility Plant Equipment ESTIMATED SERVICE LIFE 25-50 years 25-50 years 25-75 years 3-20 years •see Note 7 for additional information Accumulated Unpaid Vacation and Sick Pay Labor contracts with City of Renton employees coll 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 vocation leave to a maximum of 432 hours. Sick leave termination benefits ore 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 dole of hire. Accumulated amounts of vocation leave and related benefits ore accrued as expenses when incurred in Proprietary Funds. The current portion of the Enterprise Funds, $36,500, and the Internal Service Funds, $3,351 is included with the current liability accounts Accrued Wages Payable and Accrued Employee Benefits Payable. In Governmental Funds, only the current portion of the yeor1y accrual (based on lost in-first out formula) left unpaid al 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. Al year-end 2002, the Governmental Funds recorded current liabilities of $281.946 on the respective balance sheets and a long-term liability for the non-current portion of accumulated vocation and related benefits in the amount of $2. 114,6 15 in the General Long- 37 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 Term Debt Account Group. The unpaid liability in the Proprietary Funds at December 31 was $279,658. 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, 2002, were $222,755 and $2.212,520, respectively. The following table details the total vacation and sick leave liability: TABLE 3: EMPLOYEE LEAVE PAYABLE ITEM CURRENT LONG-TERM TOTAL General Governmental Fund $ 281.946 $ 0 $ 281.946 General Long-Term Debt 0 4.327.135 4.327, 135 Proprietary Fund 39,851 502.413 542.264 TOTAL LEAVE BENEFITS $ 321,797 $ 4,829,548 $ 5.151,345 Fund Equity -Reserves and Designations The City recognized in its reporting that assets am sometimes not "available spendable resources" or at limes 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. Risk Management and Risk Retention It is the City of Renton's policy to self-insure first level coverage for property, liability, worke(s compensation, and employee medical coverage. For rnid-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, 2002, the Insurance Fund's unreserved retained earnings totaled $5,877,014. See Note 18 for additional information. NOTE 2 -STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY Deficit Fund Equffy The Leased City Properties capital projects fund had a fund balance of ($1,146,521) as of December 31. 2002. The long-term expectation continues to be lease revenues will offset the expenditures and reduce the deficit incrementally each year. 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. 38 - - - - - - - - - - - ... ... - - - - DEPOSITS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 All deposits ore 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 rota basis. Accordingly. the deposits covered by WPDPC ore considered insured and classified as risk category 1. The City had $82,667,988 in cash and investments at yeor-end, which consisted of $26,512.448 in the State Investment Pool and Municipal Investors Account, $55,971,775 in other investments. and $15,155 in petty cash. All cash in excess of current requirements was invested at year-end with bank deposits reporting a cash balance of $183,697. 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 TOTAL ALL CHANGE IN INVESTMENT RESTRICTED CASH&CASH FAIR VALUE OF TOTAL CASH & FUND GROUP CASH POOL£MtA• CASH EQUIVALENTS INVESTMENTS INVESTMENTS INVESTMENTS General $ 2.024.505 $ $ $ 2024.505 $ 2.000.000 $ 105,020 $ 4,129,525 Special Revenue 1,944,168 745,000 2.689.168 600,000 99,062 3,388.230 Debt Service 545,808 979.000 1.524.808 444,870 22.822 1.992.500 Capitol Projects 17.074.994 6,728,381 23.803.375 10.207,068 755.711 34,766, 154 Enterprise (l.896.086) 7,620,000 4,706,781 10,430,695 8,366.250 77.210 18.874.155 Internal Service 5,202,861 3,763.000 8,965,861 2,296.500 135,263 11,397,624 Trust & Agency: 512,964 749.767 T,262.731 4,324,771 2.532.298 8,119.800 TOTAL ~ 25,-409,214 s 20.585, 148 s 4,706,781 s 50,701.143 ~ 28,239,459 s 3,727,38& ~ 82.667,988 • Municipal Investor Account. SIP investments in 2002 ore $11,507,683. MIA investments in 2002 ore $15,CXJ.4,765. INVESTMENTS Washington Slate 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. Slate, and Local government-owned public utilities. All investments ore valued at fair value as of December 31 , 2002. The City has no investments reported at amortized cost. The fair value of the positions in the State Investment Pool and Municipal Investor Account is the same as the value of the pool shores. The Treasurer of the State of Washington manages the State Investment Pool and U.S. Bank manages the Municipal Investor Account . The City of Renton's investments ore 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 ore held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments that are held by the counterparty's trust department or agent, but not in the City's name. Al the end of the year. the City had no investments in category 3. 39 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 TABLE 5: CLASSIFICATION OF INVESTMENTS AS OF DECEMBER 31, 2002 ITEM CATEGORY 1 US Government $ 27,701.556 TOTAL INVESTMENTS s 27,701,556 NOTE 4 ·DEFERRED COMPENSATION CATEGORY2 $ 101.058 s 101,058 FAIR VALUE $ 27.802.614 s 27,802,614 The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. This plan is administered by the Hartford Life Insurance Company and the ICMA Retirement Corporation. The plans am 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 not restricted to the benefit provisions under the plan. At December 31. 2002, the fair value of the plans' assets were $18.994.180. 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. 2002. The City provides reserves for potentially uncollectible water. wastewater. storm. metro. solid waste utility, and airport charges. At December 31, 2002. these reserve bcJlances were $65,698. 40 - NOTES TO THE FINANCIAL STATEMENTS -DECEMBER 31, 2002 TABLE 6: NET RECEIVABLES AND PAYABLES -SPECIAL DEil CAPITAL INTERNAL TRUST L ITEM GENERAL REVENUE SERVICE PROJECTS ENTERPRISE SERVICE AGENCY TOTAL RECEIVABLES: -Taxes $ 419.588 $ 0 $ 14.969 $ 0 $ 0 $ 0 $ 0 $ "34.557 Accounts 4,313,754 48,172 0 2,998 5,027, 182 11,383 0 9,403.489 Notes 0 0 0 0 0 0 0 0 -Special Assess-Delinquent 0 0 1,148 0 0 0 0 1.148 Special Assess-Current 0 0 0 0 12.915 0 0 12,915 Special Assess-Deferred 0 0 383.772 0 51,658 0 0 435,430 -Interest-Special Assess 0 0 23.227 0 1,082 0 0 24.309 Interest on Investments 134.165 92,428 13.00J 478,627 92.243 123.322 1.339,443 2.273.288 -TOTAL ALL FUND TYPES ~.867,507 ~ 140,600 ~ "36, 176 ~ 481,625 ~.185,080 ~ 13-4,705 ~1.339,443 !12.515.136 PAYABLES: Matured Interest Payable $ 0 $ 0 $ 159,000 $ 0 $ 0 $ 0 $ 0 $ 159,000 -Accrued Interest Payable 0 0 0 0 255.844 0 0 255.844 Accrued Wages Payable 0 0 0 0 33.494 3,075 0 36,569 Accrued Benefits Payable 0 0 0 0 3,005 276 144 3,425 -Accrued Taxes Pa~able 4,972 5,337 0 27,878 114,075 0 0 152.262 TOTAL ALL FUND TYPES ~ 4,972 ~ 5,337 ~ 159,000 ~ 27,878 ~ 406,418 ~ 3,351 ~ 144 ~ 607,100 INTERFUND RECEIVABLES AND PAYABLES -TABLE 7: INTERFUND RECEIVABLES AND PAYABLES ITEM DUE FROM DUE TO -GENERAL FUND $ 76 $ 400 SPECIAL REVENUE FUNDS: Street Fund 29.225 0 -Total Special Revenue Funds 29,225 0 DEBT SERVICE FUNDS: General Government Misc. Debt 0 0 ... 1989 Unlimited GO 400 0 Total Debt Service Funds 400 0 CAPITAL PROJECT FUNDS: ... Municipal Facilities Construction 0 0 Capital Improvement Fund 0 23,902 Total CapHal Project Funds 0 23,902 -ENTERPRISE FUNDS: Waterworks Utility Fund 45.505 0 Airport Fund 0 5.358 Water Sewer Construction 0 45,546 Total Enterprise Funds 45,505 50,904 TOTAL ALL FUND TYPES $ 75,206 $ 75,206 - 41 .... NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 INTERFUND LOANS/ADVANCES RECEIVABLE & PAYABLE The following is a reconciliation of the $1.335.000 interfund loans and advances of which $0 is current and $1,335,000 is long term: TABLE 8: INTERFUND LOANS/ADVANCES -RECEIVABLE AND PAYABLE INTERFUND LOANS/ADVANCES FUND RECEIVABLE PAYABLE GENERAL FUND $ 75.000 $ 0 SPECIAL REVENUE FUNDS: Community Development Block Grant 0 75,000 CAPITAL PROJECTS FUNDS: Municipal Facilities Construction 1,260,000 0 Leased City Properties 0 l,260,000 TOTAL ALL FUND GROUPS $ 1,335,000 $ 1,335,000 INTERGOVERNMENTAL RECEIVABLES At December 31, 2002, the receivables from other governmental units included federal, state and local grants receivable of $1.281.190, and other governmental receivables amounting to $519,829. TABLE 9: DUE FROM OTHER GOVERNMENTAL UNITS SOURCE GRANTS: Federal Emergency Management Agency Department of Transportation State of Washington King County Subtotal -AH Granh OTHER GOVERNMENTAL RECEIVABLES: Bryn Mawr-Lakeridge Water & Sewer King County TOTAL DUE FROM OTHER GOVERNMENTS INTERGOVERNMENTAL PAYABLES AMOUNT $ 30.691 401.285 981,718 95,912 1,509,606 264.478 26,937 $ 1,801,019 A total of $2. 162.633 was recorded as due to other governmental units at December 31. 2002. This included $1.435.890 for the portion of Municipal Court's outstanding receivables due to the State and $726.743 to the Washington State Deportment of Community, Trade and Economic Development for current portion due on Public Works TnJst Fund loans. 42 - - - - ... - - - - - - - ... ... - - - NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 NOTE 6 • RESIDUAL EQUITY AND OPERATING TRANSFERS lnterfund transfers are classified as either residual equity transfers or operating transfers. 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. Operating transfers are accounted for as "other financing sources or uses" and are included in the operating statements. There were no residual equity transfers recorded in 2002 . TABLE 10: OPERATING TRANSFERS FUND TYPE GENERAL GOVERNMENTAL: General Park Arterial Street Street One Percent for Art 1989 Limited GO Ref. Bonds 1983 Unlimited GO Ref. Bonds General Government Misc. Debt LID Debt Service LID Guaranty Transportation Impact Mitigation Aquatic Center Municipal Facilities Construction Capital Improvement PROPRIETARY FUNDS: Waterworks Utility Insurance TOTALS NOTE 7 · FIXED ASSETS TRANSFERS IN TRANSFERS OUT $ 0 $ 4,273,059 0 2,100,000 0 353,500 0 425,000 14.192 0 0 54,202 0 372.256 830.759 500,000 0 390,621 0 152,132 0 1,200,000 5.000.000 0 2.043,000 175,000 1.553,500 14,192 10,079 578,590 0 $ 10,020,041 $ 10,020,041 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 2002, sixteen 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 11 and 12 describe the changes in the City's general fixed assets during 2002 and the Construction Work In Progress at the end of the year. 43 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 TABLE 11: CHANGES IN GENERAL FIXED ASSETS BEGINNING ENDING ASSET BALANCE ADDITIONS DELETIONS BALANCE Land $ 28,541.726 $ 339,963 $ 0 $ 28,881.689 Buildings 65,777,064 1.023.715 0 66.800.779 Non-Building Improvements 21.878,768 350.653 0 22,229.421 Equipment 9,278,073 363.192 0 9,641.265 Construction in Progress 4,699,243 6,775.480 0 l l .474.723 Joint Venture 4,087,259 501,185 0 4,588.444 TOTAL ~ 134,262, 133 ~ 9,354,189 ~ 0 ~ 143,616,322 TABLE 12: CONSTRUCTION WORK IN PROGRESS ESTIMATED REMAINING ESTIMATED PROJECT cosrro DATE COSTS TOTAL COST Athletic Field Light Pole Replacement $ 272.785 $ 0 $ 272.785 Aquatic Center 100.453 4,899,547 5,000,000 Cedar River Trail Extension 16.980 100.000 116.980 City Facilities Repaving 102,855 157,000 259,855 City Neighborhood Beautification 65.960 30.000 95,960 Downtown Parking Garage 6.020.456 3.519.544 9.540.000 Fire Station 12 1,713,621 3,285,379 4,999,000 Fire Station 15 922.126 4,831,874 5.754,000 Highlands Annex Acq/Demolition 272,001 0 272,001 New Shop Facilities 40,123 5,000,000 5,040, 123 Port Quendall 807.602 0 807.602 Park Play Equipment 646.400 256,000 902,400 Police Evidence Building 339,969 128.000 467.969 Skateboard Park 5.860 40.000 45,860 Veterans Memorial Park 20,588 393,412 414,000 Pavilion Project 126.944 2.173.056 2.300.000 TOTAL $ 11.474.723 $ 24,813,812 $ 36,288,535 Fixed ossets of Proprietary Funds are capitalized in their respective balance sheets. These ossets 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 lo 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 2002, interest costs incurred on construction projects in Proprietary Funds were not material. 44 - - - - ... - - - - - - ... ... - NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 Table 13 provides a summary of Proprietary Fund property, plant, and equipment as of December 31, 2002. TABLE 13: PROPRIETARY PROPERTY, PLANT, & EQUIPMENT SOUD GOLF TOTAL WATERWORKS AIRPORT WASTE COURSE TOTAL EQUIPMENT INTERNAL ASSET UTILITY FUND UTILITY FUND ENTERPRlSE RENTAL INSURANCE SERV1CE Land $ 3,509,041 $ 78-4.080 $ 0 $ 2,683,200 $ 6.976.320 $ 0 $ 0 $ 0 Buildings 8,940,679 832,429 0 4,032,970 13,806,079 0 0 0 Equipment 3,997,404 58,536 520,051 807,065 5,383,056 9,505,927 93,000 9,598,927 Other Improvements 194,298,310 10,975,821 0 3.423,367 "108,697 ,498 0 0 0 Construction Work ln Prowess 3,033,430 384,454 0 67,363 3,485,247 0 0 0 TOTAL ASSETS 213.n&.863 13.035,321 520.051 11.013.966 238.348.200 9.505.927 93.000 9,598.927 less Accumulated Depreciation 46,204,893 7,075,824 494,572 2,121.389 55.896,678 4,509,362 48,897 4,558,259 NET PROPERTY. PLANJ. & EQUIPMENT $167,573.970 $ 5,959,497 $ 25,479 $8,892,Sn $182.451.523 $:!.996,5'5 $ 44.103 $ 5.040.667 CONTRIBUTED CAPITAL RETIREMENT The Airport Fund has $7,757,593 of contributed capital that includes $7,620,901 of Federal, $53,775 of State, and $82,917 of private sources, which is being retired on an annual basis. The unamortized balance as of December 31, 2002, was $2,529 .7 53. The Airport is the only fund that amortizes its contributed capital at this time. The Waterworks Utility Fund has $112, 116,546 of contributed capital, the Solid Waste Utility Fund has $166, 166, the Golf Course Fund has $1.412,225, and the Equipment Rental Fund has $2,277,242. 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, 2002. This amount represents prepaid postage charges to be expensed in 2003. The Insurance Fund has recorded $3,000 of prepaid items at December 31, 2002. This amount represents a $3.000 revolving fund established to pay claims by our insurance broker. NOTE 9 · JOINT VENTURE The Valley Communications Center (Valley-Com), an emergency dispatch operation, was established August 20, 197 6, when an lnterlocal Agreement was entered info by four participating municipal governments, that include the cities of Renton, Kent, Auburn and Tukwila. The provisions and terms of the "lnterlocal Cooperation Act" pursuant to R.C.W. 39.34 sanction the agreement. The initial duration of the agreement was five years, 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. On August 4, 1999 the Administration Board of Valley Communications Center voted to include the City of Federal Way as a full participating Member City as of January 1, 2001. A new lnterlocal Agreement pursuant to RCW 39.34, et seq., was entered into by the five participating municipal corporations, which include the cities of Auburn, Federal Way, Kent, Renton, and 45 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 Tukwila on April 17, 2001. This agreement reaffirmed Valley Communications Center as o governmental administration agency pursuant to RCW 39.34.030 (3) (b). The duration of the agreement is for five (5) years from its effective dote, January l, 2001 and, shall automatically be extended for an additional five (5) year period unless terminated as provided. However, the agreement shall not be terminated until oil bonds issued by Volley Communications Center Development Authority hove been paid and retired. The purpose of the joint operation, hereafter referred to as Volley-Com, is to provide improved consolidated emergency communications (dispatch) services for police, fire, and medical aid, to the five participating cities and to the several subscribing agencies, which include King County Fire Districts #2, # 17, #20, #26, #40, #43, #44, #47; City of Pacific Police and Fire Deportments, City of Algona Police Department, City of Des Moines Police Department. City of Block Diamond Police Deportment, and King County EMS Units. Separate agreements between Valley-Com and the subscribing agencies hove been executed, which set forth conditions of services and rotes charged. The allocation of prorated financial participation among the five participating cities is the percentage of dispatched calls attributed to each jurisdiction compared to the total estimated dispatched coils, for the current twelve month period ending December 31. The percentages ore applied to the current approved budget, less revenue from oil other sources. Distribution of current year net income is based on the same percentages. The 2002 cost distributions for the five participating cities were as follows: TABLE 14: JOINT VENTURE COST DISTRIBUTION DISPATCHABLE PERCENT 2002 CITY CALLS Of TOTAL ASSESSMENTS Renton 63.378 IS'.073 $ 980,653 Kent 91,625 2Ei.083 1.444.492 Auburn 66,908 20.193 1,038.622 Tukwila 37,980 10.963 563,597 Federal Way_ 71,629 21.703 1,116,148 TOTAL 331,520 100.003 ~ 5,143,512 Volley-Com is governed by on Administration Boord, composed of the Mayors or designated representatives from the five participating cities of Renton, Kent, Auburn, Tukwila, and Federal Woy. The Administration Boord is responsible for the following functions: o) Recommend action to the legislative bodies of the participating members; b) Review and approve budget expenditures; c) Establish policies for expenditures of budget items for the Center; d) Review and adopt o personnel policy for the Valley Com Center; e) Establish o fund or special fund or funds as authorized by RCW 39.34.030 for the operation of the Volley Com Center; f) Conduct regular meetings as may be designated by the Administration Boord; g} Determine what services shall be offered and under what terms they shall be offered: h} Enter into agreements with third parties for goods and services necessary to fully implement the purposes of this agreement; i} Establish rates for services provided to other members, subscribers or participating agencies; j} Direct and supervise the activities of the Operations Boord and the Center Director; k} Incur debt in the name of the Center to make purchases or contract for services necessary to fully implement the purposes of this agreement; I) Enter into agreements with, and receive and distribute funds, from any federal, state, or local agencies; m} Receive all funds allocated to the Center from its members; n} To purchase, toke, receive, lease, take by gift, or otherwise acquire, 46 - - - - - - - - - - - ... - ... .. - - NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 own, hold, improve, use and otherwise deal in and with real or personal property, or any interest therein, in the name of Valley Communications Center; o) To sell, convey, mortgage, pledge, lease, exchange, transfer and otherwise dispose of all of its property and assets; p) To sue and be sued, complain and defend, in all courts of competent jurisdiction in the Center's name; q) To make and alter by-laws for the administration and regulation of its affairs; r) Enter into contracts with future participating members and subscribers to provide communications services; s) To hold radio frequency licenses to enable the Center to operate radio communications and dispatch systems to meet its public safety responsibilities; and t) Any and all other acts necessary to further Valley Communication Center's goals and purpose. 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: a) Oversee the operation of Valley-Com, and advise and make recommendations to the Administration Board; b) Make recommendations on Director selection; c) Present proposed policies and budgets to the Administration Board; and, d) 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 l 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 lnterlocal Agreement. Tables 15 and 16 show the condensed financial position as of December 31 , 2002, and the results of operation and changes in retained earnings for the year ended 2002. Audited 2002 financial statements may be obtained by contacting Valley Communications Center, 27519 -108'h Ave SE, Kent, WA 98030. TABLE 15: BALANCE SHEET ITEM AMOUNT ASSETS: Current Assets $ 7.724, 109 Restricted Assets 2.713,806 Property, Plant, and Equipment 17.395,784 Unamortized Bond Premium 0 TOTAL ASSETS $ 27,833,699 LIABILITIES AND FUND EQUITY: Current liabilities $ 52,927 Lona: Term liabilities 266,540 TOTAL LIABILITIES 319,467 Retained Earnings 20,554,239 Contributed Capitol 6,959,993 TOTAL FUND EQUITY 27,514,232 TOTAL LIABILITIES AND FUND EQUITY $ 27,833,699 47 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 TABLE 16: STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN RETAINED EARNINGS ITEM AMOUNT OPERATING REVENUE: Intergovernmental Charges $ 7,062,742 Other Operating Revenue 7,434 Total Operating Revenue 7,070,176 OPERATING EXPENSES: 8,359,131 Net Operating (Loss) (1,288,955) NON-OPERATING REVENUE (EXPENSES) Interest and Miscellaneous Revenue 87,673 Construction Funds 3,800,000 Total Non-Operating Revenue £Expenses) 3,887,673 Net Income (Loss) 2,598,718 Retained Earnings at Beginning of Year 17,955,521 Retained Earnings at End of Year 20,554,239 Contributed Capitol 44,793 800-Mhz Contributed Capitol 6,915,200 TOTAL FUND EQUITY AT END OF YEAR $ 27,514,232 The share of equity belonging lo the five participating cities is shown in Table 17 below. Liabilities are the responsibility of the five participating cities in direct proportion to their equity position. TABLE 17: JOINT VENTURE EQUITY ITEM RENTON KENT AUBURN TUKWILA FEDERAL WAY TOTAL Equity January 1, 2002 $ 4,087.259 $ 5,464.384 $ 3,787.975 $ 2,692.643 $ 1,971.762 $ 18,004,023 Current Year Increase 501,185 724,517 528,971 300,397 566, 193 2,621.263 Equity December 31, 2002 $ 4,588,444 $ 6,188.901 $ 4,316,946 $ 2,993.040 $ 2,537,955 $ 20,625,286 Percent of Equity 22.253 30.013 20.933 14.513 12.303 100.003 Percent of 2002 Distribution 19.123 27.643 20.183 11.463 21.603 100.003 In August 1993, Valley-Com entered into an interlocal cooperation agreement, pursuant to RCW 39 .34. with the sub regions 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 BOO-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 sub region'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 sub region or consortium of sub regions. In accordance with this agreement. the participatin~J cities of Valley-Com have no equity interest in Valley-Com's BOO-megahertz contributed capital (King County levy distribution and interest earned) of $6. 915,200 as of December 31. 2002. 48 - - - - - - - - - - - ... ... - - - NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 In May 2000, the City of Renton entered into an interlocal agreement with four cities to form a Public Development Authority (PDA). Ordinance 4836 both approved the formation of the PDA as well as authorized the issuance of bonds to acquire land and acquire, construct. and equip the Valley Communication Center. Bonds were issued for $12.758,000, with each city accepting 20 percent obligation for payment. These bonds will mature in 2015. The obligation lo this debt is further disclosed in Note 13. NOTE 10 -PENSION PLAN & OTHER POST EMPLOYMENT BENEFITS 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); and 2) Law Enforcement Officers and Fire Fighters Retirement System (LEOFF). The PERS and LEOFF retirement systems are cost-sharing multiple-employer plans 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 lo State statute. The City's total payroll for all employees was $38. 149,509 for the year ended December 31. 2002. TABLE 18: PERS AND LEOFF INFORMATION BY PLAN PERS PLAN 1 PERS PLAN 2 PERS PLAN 3 LEOFF PLAN 1 LEOFF PLAN 2 (MEMBERSHIP (MEMBERSHIP (MEMBERSHIP (MEMBERSHIP (MEMBERSHIP PRIOR TO ONOR ON OR AFTER PRIORTO ON OR AFTER nEM 10lll!7l AnER 101117!} 9l1l2002l 1011mi 1011mi VESTING REQUIREMENT: Service year required for vesting of benefits 5/25/19::1) 5/20' 5/5/10'' 5 5/20 Retirfng age for vesting of benefits 60/55/ony age 65/55' 65/65/65 50 58/50 EMPLOYEE CONTRIBUTION: Required Rate @ 12/31 /00. 6.00% 0.65% Vories 0.00% 4.39% Contribution Amount for 2002 $ 129,269 $ 147.712 2,577 0 $567.148 EMPLOYER CONTRIBUTION: Required Rate @ 12/31 /02 1.32% 1.32% 1.323 0.22% 2.86% Contribution Amount for 2002 p1.176 1295,088 431 P,609 } 369.533 . Receive reduced benefits •• Con withdraw Defined Contribution at separation, varies under Defined Benefit portion . PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PERS) Plan Description The PERS system was established by the Slate legislature in 1947 under Revised Code of Washington (RCW) Chapter 41.40. Membership in the system includes elected officials, slate employees, and employees of local government. Approximately 46 percent of PERS members are state employees. The PERS system consists of three plans. Participants who joined the system prior to October 1 , 1977 are Plan 1 members. Participants joining October l. 1977 to September l, 2002 are Plan 2 members. Participants joining after September l , 2002 may be eligible for either Plan 2 or Plan 3. 49 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 The new PERS Plan 3 officially went into effect on March 1. 2002. PERS members currently in Plan 2 have an option to transfer to Plan 3. Plan 3 combines both a defined benefit plan and defined contribution plan. All new PERS members have 90 days from their first eligibility to decide which Plan to choose. Retirement benefits are financed from employee and employer contributions and investment earnings. Retirement benefits in Plans 1 and 2 are vested after completion of five years of eligible service. Under Plan 3, participants may retire if they meet any one of three criteria: • Age 65 with at least 5 years of eligible service ( 1 :2 months after age 54): • Age 65 with at least 5 years of eligible service by June 1, 2002 under PERS Plan 2 and transferred to Plan 3; or • Age 65 with at least 10 years of eligible service if either criterion is not met. All plans provide retirement and disability benefits. annual cost-of-living adjustments, and death benefits lo plan members and beneficiaries. Funding Polley The State legislature established Plan 1 employer contribution rates, and Plan 2 employer and employee contribution rates each biennium. Employee contribution rates for Plan 1 are established by statute and do not vary from year to year. Plan 3 defined benefit component rates are currently equal to the Plan 2 employer contribution. The defined contribution component has six options. and once selected, is irrevocable unless the participant changes employers. The six options are: 1. 5 percent fixed rate at all ages 2. 5 percent up to age 35 6 percent ages 35-44 7.5 percent age 45 and older 3. 6 percent up to age 35 7.5 percent ages 35-44 8.5 percent age 45 and older 4. 7 percent fixed rate at all ages 5. 1 O percent fixed rate at all ages 6. 15 percent fixed rate at all ages See Table 18 for information regarding contribution rates and employer/employee contributions as of December 31, 2002. LAW ENFORCEMENT OFFICERS & FIRE FIGHTERS RETIREMENT SYSTEM (LEOFF) Plan Description The LEOFF system was established by the State legislature in 1970 under Revised Code of Washington (RCW) Chapter 41.26. Membership includes all full-time law enforcement officers and fire fighters. LEOFF is comprised solely of non-state employees. 50 - - - - - - - - - - ... - ... - - NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 The LEOFF system consists of two plans. Participants who joined the system prior lo October 1, 1977 are Plan I members. Participants joining October 1. 1977 and after are Plan II members. Retirement benefits are financed by employee and employer contributions, investment earnings, and legislative appropriation. Retirement benefits in both plans are vested after completion of five years of eligible service. Both plans provide retirement and disability benefits. annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Funding Polley Plan I employers and employees are required to contribute at a prescribed rate and the State is responsible for the balance of the funding. Plan II employers and employees are required lo contribute at levels established by the State legislature. The contribution rates are developed by the Office of the State Actuary in order to fund the system. See Table 18 for information regarding contribution rates and employer/employee contributions as of December 31, 2002. TABLE 19: PERS AND LEOFF INFORMATION BY SYSTEM ITEM (DOLLARS IN MILLIONS! PERS LEO FF City Participating Payroll $ 21.847 $ 14.451 Plan I City Contribution Rate @ 12/31 /02 1.323 0.223 Plan II City Contribution Rate @ 12/31 /02 l.323 2.863 City Pion Contribution: 2002 $ 0.326 $ 0.373 2001 $ 0.656 $ 0.437 2000 $ 0.834 $ 0.492 1999 $ l.087 $ 0.583 1998 $ l.283 $ 0.636 1997 $ l.230 $ 0.608 Plan I Employee Contribution Rate @ 12/31 /02 6.003 0.003 Plan II Employee Contribution Rate@ 12/31/02 0.653 4.393 "' All required contributions to both systems were mode by the city and the employees. Historical trend and other information regarding the PERS and LEOFF plans are presented in the State Department of Retirement Systems 2002 Comprehensive Annual Financial Report. A copy of this report may be obtained by contacting the Department of Retirement Systems, Administrative Services Division, PO Box 48380, Olympia, WA 98504-8380 . FIREMEN'S PENSION Plan Description The City is the administrator of a Firemen's Pension Plan, a closed, single-employer, defined benefit pension plan established in accordance with Revised Code of Washington (RCW) 41.18 and in accordance with the Renton Municipal Code. This plan provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. This system was established for fire fighters employed prior to March 1, 1970, when the LEOFF retirement system was established. The retirement benefits vest after 20 years of service. Members may retire after 25 years of service regardless of age; and after age 50 with 20 or more years of service. 51 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 The Firemen's Pension Plan is considered part of the City's reporting entity and is included in the City's financial statements as a pension trust fund. An c1ctuarial report prepared by Milliman, USA may be obtained by contacting the City of Renton Finance Department. 1055 South Grady Way. Renton. Washington 98055. At December 31, 2002, there were 43 members in the System. This includes 36 retirees and beneficiaries currently receiving benefits; 7 retirees currently receiving full retirement benefits through the Law Enforcement Officers and Fire Fighters Retirement Plan (LEOFF); and no vested or non-vested octive members. Funding Polley Under State law. the Rremen's Pension Plan is provided an allocation of all monies received by the State from taxes on fire insurance premiums; interest earnings; member contributions made prior to the inception of LEOFF; and City contributions n~quired to meet projected future pension obligations. Costs of administering the Rremen's Pension Plan are paid by the Plan. For 2002. this cost was $6.507. An actuarial valuation was completed as of January l, 2003. Significant actuarial assumptions used in the valuation include: l) 5 percent inflation rate; 2) 6 percent investment return. compounded annually; 3) 5 percent salary increase annually; 4) 5 percent post-retirement benefit increase annually; 5) level dollar amortization method; and 6) 30-year open amortization period. All assets are carried on a market value basis. There were no material changes to the benefit provisions. actuarial funding method or other significant factors that affect contributions required. The Annual Required Contribution (ARC) was computed using an alternate funding method. the Entry Age Normal Cost Method. Under this method the projected benefits are allocated on a level basis as a percentage of salary over the earnings of each individual between entry age and assumed exit age. For actual funding purposes. the modified aggregate cost method was used to determine the funding basis. TABLE 20: ANNUAL PENSION COST AND NET PENSION OBLIGATION ANNUAL REQUIRED CONTRIBUTION (ARC) Annual Normal Cost Beginning of Year Amortization of UAL Beginning of Year Interest to End of Year ARC at End ot Year Add Interest on NPO (Net Pension Obligation} Subtract Adjustment to ARC Annual Pension Cost (APCJ Subtract Employer Contributions Change In NPO NPO at Beginning or Year NPO at End or Year DECEMBER 31. 2000 $ 2,180 $ 90,826 6.510 99,516 (4.738) (5.0981 99,B76 44,582 (55,294) (67,6B6) s (12,392) s 52 flSCAL YEAR ENDING DECEMBER 31, 2001 DECEMBER 31, 2002 0 $ 0 (19,675} (19,675} 11.180) 11.1001 0 0 (867} (3.781} (943) (4,435) 76 654 50,703 55,730 (50,627) (55,076) (12,392) (63,019) (63,019) s (llB,095) - - - - - - - - - - - - - - - - NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 TABLE 21: SCHEDULE OF FUNDING PROGRESS (Rounded to thousands) UNFUNDED ACTUARIAL ACTUARIAL ACTUARIAL ACCRUED ACCRUED VALUATION VALUE OF LIABILITIES DATE ASSETS ENTRY AGE LIABILITIES FUNDED !UAALJ RATIO COVERED PAYROLL UAALASA PERCENTAGE OF COVERED PAYROLL January 1. 1997 $5.238 $ 6.444 $1.206 81.283 January 1, 2001 $ 7,067 $ 6.780 {287) 104.23 January 1, 2003 $ 9, 189 $ 6,472 !2.717! 1423 TABLE 22: SCHEDULE OF EMPLOYER CONTRIBUTIONS ANNUAL $ 260 $0 $0 463.853 N/A N/A ACTUAL ACTUAL TOTAL REQUIRED PERCENTAGE FISCAL YEAR EMPLOYER FIRE INSURANCE EMPLOYER CONTRIBUTION OF ARC ENDING CONTRIBUTION PREMIUMS CONTRIBUTIONS (ARC} CONTRIBUTED December 31, 2000 0 44.582 44.582 99.516 44.803 December 31. 2001 0 50.703 50.703 0 N/A December 31. 2002 0 55,730 55.730 0 N/A TABLE 23: GASB STATEMENT NO. 27 THREE-YEAR TREND INFORMATION (Rounded to thousands) CONTRIBUTION ANNUAL ASA NET PENSION FISCAL YEAR PENSION COST PERCENTAGE OBLIGATION ENDING (APC} OF (APC} (NPOJ December 31. 2000 $ 99,876 44.643 {$12,392) December 31. 2001 76 667.143 {$63,019) December 31. 2002 654 85.213 1i118.095J TABLE 24: ANNUAL DEVELOPMENT OF PENSION COST TOTAL ARC EMPLOYER FISCAL YEAR ARCATEND INTEREST ON ADJUST-CONTRIBU-CHANGE IN ENDING OF YEAR NPO MENT APC TIONS NPO 12/31/00 99,516 {4,738) {5.098) 99,876 44,582 55.294 12/31/01 0 {867) {943) 76 50.703 {50.627) 12/31/02 0 (3,7811 {4.4351 654 55.730 {55.076) NPO BALANCE {12.392) {63.019) (118.0951 In order to comply with GASB reporting requirements, the Annual Required Contribution has been calculated using an alternate funding method. the Entry Age Normal Cost Method. Under this method, the projected benefits are allocated on a level basis as a percentage of salary over the earnings of each individual between entry age and assumed exit age. Employees are not required to make contributions. The contributions to the System for 2002 include $55,730 from fire insurance premiums and $1,252,935 of investment income. 53 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 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/l /77) and Fire Pension (fim fighters hired prior to 3/l /70) retirees. Currently there are 99 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 $333,706 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 Port B coverage. The City reimburses these Medicare premiums at an average cost of approximately $54.00 per month for 35 LEOFF I retirees and 5 Fire Pension retirees. NOTE 11 -PRIOR YEAR RESTATEMENTS In 2002, the City implemented GASB Statement No. 33, "Accounting and Financial Reporting for Nonexchange Transactions". Statement No. 33 reclassifies capital contributions from the Fund Equity section to an operating statement accounting. In addition, the reporting requirement reflects current year change in contributions, instead of a cumulative balance. The effective date of this pronouncement is for financial statement periods beginning after June 15, 2000; as a result, the 2001 comparative totals have been restated. NOTE 12 -CONSTRUCTION COMMITMENTS At December 31, 2002, the City had significant contmctual construction commitments. These are listed in Table 25: TABLE 25: CONSTRUCTION COMMITMENTS PROJECT TITLE COMMITMENT Waterworks Improvements $ 716,931 Community Services Improvements 3,959,816 Transportation Improvements 204,889 NOTE 13 -LONG-TERM DEBT AND CAPITAL LEASES FUNDING SOURCE Public Works Trust Fund Loons/Grants General/Grants General/Grants 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: l) The outstanding general obligation 54 - NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 - debt and special assessment debt are 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 liability and repayment of the same are reported in individual Proprietary Funds. The City has AA-and A+ bond ratings from independent rating agencies for its General Obligation Bonds and Revenue Bonds respectively. Table 26 summarizes long-term debt -transactions of the City for the year ended December 31, 2002. A detail of all outstanding debt of the City is listed in Table 27. -TABLE 26: LONG TERM DEBT ADDITIONS AND RETIREMENTS SUMMARY PAYABLE PAYABLE ITEM 1£1£02 ADDED RETIRED 12£31£02 GENERAL: General Obngoflon Bonds $ 31,550,583 $ 3,895,000 $ 1.816,000 $ 33.629,583 -Installment Contracts 193,708 0 26.268 167.440 Special Assessment 135,000 0 135,000 0 Em121o~ee Leave Benefits 4,225,611 101.524 0 4,327, 135 .... TOTAL GENERAL ~ 34,104,902 ~ 3,996,524 ~ l,977,26B ~ 38, 124, 15B PROPRIETARY: Revenue Bonds $ 23.070.000 $ 11.980.000 $ 3.820.000 $ 31,230,000 Capitol Leases 45.656 0 38.418 7,238 Employee leave Benefits 446.251 96,012 0 542,263 Public WOfks Trust Fund Loons 7,894,356 948,053 620,274 8.222.135 -TOTAL PROPRIETARY ~ 31,456,263 ~ 13,024,065 ~ 4,478,692 ~ 40,001,638 TOTAL All FUNDS: General Obligation Bonds $ 31,550.583 $ 3.895.000 $ 1,816,000 $ 33,629,583 .... Revenue Bonds 23,070,000 11,980,000 3.820,000 31,230.000 Installment Contracts 193,708 0 26,268 167.440 Capitol Leases 45,656 0 38.418 7,238 Special Assessment 135.000 0 135,000 0 -Employee leave Benefits 4,671.862 197,536 0 4.869,398 Public Works Trust Fund Loan 7,894.356 948.053 620,274 8,222, 135 TOTAL All FUNDS $ 67,561,165 $ ... 17,020,589 $ 6,455,959 $ 78, 125, 794 ... .... ... - 55 - NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 TABLE 27: OUTSTANDING DEBT AS OF DECEMBER 31, 2002 TOTAL INTEREST ISSUED MATURnY AMOUNT OUTSTANDING ITEM RATES DATE DATE ISSUED 1/1/02 ISSUED REDEEMED 12/31/02 General ObRgatlon londr. Limited 1989 G O Refunding Bonds 6.753-7.00% 06/01/89 05/01 /02 $ 2,085,000 $ 290,000 $ 0 $ 290,000 $ 0 1993 G O Refunding Bonds 3.003-4.803 08/01/93 06/01 /02 4,910,000 855,000 0 855,000 0 1994 GO Bonds 4.603-6.303 12/01/94 12/01/04 980,000 65,000 0 0 65,000 1996 GO Bonds 4.253-5.403 10/15/96 10/15/06 553,337 454,012 0 58,001 396,011 1997 GO Refunding Bonds 5.253-5.553 05/01/97 12/01 /06 2.683,827 2.683.827 0 0 2,683,827 1997 G 0 Bonds 5.553-5.753 05/01/97 12/01/17 14,697,744 2.037,744 0 0 2,037,7-44 2000 GO Valley Comm 5.313 09/15/00 12/01/15 2.551.600 2.455,000 0 128,000 2,327,000 2001 GO Refunding Bonds 2.1 ()3..4.853 10/18/01 12/01/17 13.505,000 13,195,000 0 0 13.195,000 2001 G 0 Bonds 4.903-5.003 10/18/01 12/01/21 6,000,000 6,000,000 0 0 6,000,000 2002 GO Bonds 2.503-5.003 7/15/02 12/01/22 3,895,000 0 3.895,000 0 3,895,000 SUBTOTAL LIMITED GO 51.861.508 28,035.583 3,895,000 1,331,000 30,599,583 Un/Im/fed 1993 G 0 Refunding Bonds-Coulon Pork 4.003-6. l 03 09/01/93 05/01/02 4,660,000 140,000 0 140,000 0 J 993 G 0 Refunding Bonds-Senior Housing 2.703-5.203 09/01/93 02/01/09 4,270,000 3,375,000 0 345,000 3,030,000 SUBTOTAL UNLIMITED GO 8,930,000 3,515,000 0 "85,000 3,030,000 TOTAL GENERAL OBLIGATION BONDS 60,791,508 31,550.583 3,895,000 1,816,000 33,629,583 Instalment Contracts: Certificates of Porticlpotlon 4.513 09/01/98 06/01/08 278, 172 193.708 0 26,268 167,440 TOTAL INSTALLMENT CONTRACTS 278,172 193,708 0 26,268 167.440 TOTAL GENERAL OBLIGATION DEBT $ 61.069,680 $ 31,7.iM,291 $ 3,895,000 $ 1,842,268 $ 33,797 ,023 Revenue londs: 1992 Water/Sewer 3.503-6.503 06/01/92 12/01/02 $ 4,000,000 $ 180,000 $ 0 $ 180,000 $ 0 1992 Water/Sewer Refunding 3.503-6.353 06/01/92 12/01/06 4,635,000 2,170,000 0 2, 170,000 0 1993 Water/Sewer 3.003-5.3753 08/01/93 04/01/13 5,285.000 3,760,000 0 230,000 3,530,000 1993 Water/Sewer Refunding 3.003-5.3753 08/01/93 04/01/10 8,860,000 6.425,000 0 775,000 5,650,000 1994 Water/Sewer 5.453-6.553 11/01/94 11/01/04 3.570,000 610,000 0 190,000 420,000 1998 Water/Sewer Refunding 3.703-5.103 03/01/98 06/01/13 6,120,000 5,595,000 0 50,000 5,545,000 1999 Golf System Refunding 3.253-5.303 04/01/99 12/01/15 5,040,000 4,330,000 0 225,000 4,105,000 2002 Water/Sewer 2.503-5.253 07/01/02 12/01/15 11,980,000 0 11,980,000 0 11,980,000 TOTAL REVENUE BONDS $ 49,490.000 $ 23,070,000 $ 11,980,000 $ 3,820,000 $ 31.230,000 Pubic: Works Trust Fund Loans: Sierra Heights Sewer Improvements 3,003 10/20/92 07/01/12 888.462 282,067 0 25,642 256.425 Central Renton Sewer Replacement L003 06/14/93 07/01/15 1,631,800 1,153,838 0 87,483 1,066,345 East Renton Interceptor 2,003 06/14/93 07/01/13 2.542.704 1.614,840 0 134,570 1,480,270 Dayton Avenue NE 2,003 05124/94 07/01/14 96,958 66,340 0 5.103 61,237 Sanitary Sewer Grouting 2,003 05/19/94 07/01/04 349,011 185.407 0 61,802 123,605 NE 27th/ Aberdeen Drainage Improvements L003 06/27/95 07/01/15 731,000 596,257 0 42,590 553,667 East Kennydale Interceptor 2.003 06/26/96 07/01/16 2,093.740 1,752,817 0 116,855 1.635,962 Honeycreek Interceptor 2,003 06/26/96 07/01/16 1,840,568 1.453,080 0 96,872 1,356,208 Corrosion Control Treatment FociUies L003 03/26/96 07/01/17 1,106,000 789,711 0 49,357 740,354 Maplewood Water llllpfovement 0,503 1/22/02 7/1/06 425,873 0 425,873 0 425,873 Const. CT Plpellne for Wells 0.503 11/5/02 7/1/22 522.180 0 522,180 0 522,180 TOTAL PUBLIC WORKS TRUST FUND LOANS $ 12,228,296 $ 7,894.357 $ 948,053 $ 620.274 $ 8,222,135 Capital leaMS: John Deere Equipment 9.503 10/01/97 09/01/02 $ 21.298 $ 3.427 $ 0 $ 3,427 $ 0 John Deere Equipment 10.393 10/01/97 09/01/02 42.473 6,949 0 6,949 0 Yamaha Golf Cou~e Carts 5.443 04/01/00 04/01/03 80,668 35,280 0 28,042 7,238 TOTAL CAPITAL LEASES $ 1.iM,439 $ 45,656 $ 0 $ 38,418 $ 7,238 UD Bonds and Notes: 329 Street/Utlftles 3,003-5,503 04/01/93 04/01/02 $ 1.654,063 $ 135,000 $ 0 $ 135,000 $ 0 TOTAL UD BONDS AND NOTES $ 1.654.063 $ 135.000 $ 0 $ 135,000 $ 0 Employff Leave Beneftb $ 0 $ 4,671,862 $ 197,536 $ 0 $ 4,869,398 TOTAL OUTSTANDING DEBT $ 124,586,478 $ 67,561.165 s 17,020,589 $ 6,455,959 $ 78.125,79' 56 - - - - - - - - - - - - ... - ... - - DEEP DISCOUNT DEBT NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 The 1996 Limited General Obligation Bond Issue included capital appreciation bonds that are issued at a deep discount. The deep-discount debt will mature in the years 2005 and 2006 with an accreted value of $25,000 and $194,000 respectively. The deep-discount debt is reported in the General Long Term Debt Account Group in the amount of $127,012, net of the remaining unamortized discount. The 1997 Limited General Obligation Bond issue included capital appreciation bonds that are issued at a deep discount. The deep-discount debt will mature in the years 2006, 2007, and 2008 and 2009 with an accreted value of $335,000, $1.245,000, $1.250,000 and 1,000,000, respectively. The deep-discount debt is reported in the General Long Term Debt Account Group in the amount of $2,037,744, net of the remaining unamortized discount. SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMMITMENT As of December 31, 2002, the final amount of $135,000 of long-term special assessment debt was redeemed. 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, 2002, special assessment receivables totaled $473,868 that includes $1, 148 of delinquent assessments. DEBT LIMIT CAPACITIES State law provides that debt cannot be incurred in excess of the following percentages of the value of the taxable property of the City: 1 .5 percent without a vote of the people provided the indebtedness with a vote is 1 percent or less; 2,5 percent with a vote of the people; 5,0 percent with a vote of the people, provided the indebtedness in excess of 2.5 percent is for utilities; and 7 .5 percent with a vote of the people provided the indebtedness in excess of 5.0 percent is for open space development and parks facilities. At December 31, 2002, the debt limits for the City were as follows: ITEM Legal Limit Outstanding Net Indebtedness Capacity Available REFUNDED DEBT TABLE 2B: DEBT LIMIT CAPACITIES WITHOUT A VOTE $ 83,908,207 29,789,195 s 54, 119,012 2.53 $139.847,012 32,258,497 $107,588,515 WITH A VOTE Of THE PEOPLE 5.03 7.53 $ 279.694,024 0 s 279,694,024 $ 419,541.037 32,258,497 s 387,282,450 As of December 31, 2002. the City's refunded debt includes three outstanding general obligation and revenue bond issues. During 2002, the 1992 Limited GO Bonds, 1994 Limited GO Bonds and the 1992 Water & Sewer -Refunded bonds were due and called. 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 statements. Schedules of assets, liabilities. and equity as of December 31, 2002, and changes to refunded bonds payable are provided in the following tables. 57 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 TABLE 29: REFUNDED BONDS ITEM ASSETS: Cash with Trustee Investments with Trustee Estimated Interest Receivable TOTAL ASSETS LIABILITIES: Refunded Bonds Payable EQUITY: Earnings with Trustee TOTAL LIABILITIES AND EQUITY U.S. BANK CORPORATE TRUST $ 2.327 19,949,174 942,635 s 20,894, 136 $ 19.115,000 1,779, 136 s 20.894, 136 TABLE 30: CHANGES TO REFUNDED BONDS PAYABLE ITEM Refunded Bands Payable GO Refunded Bonds Payable Revenue TOTAL DEBT SERVICE TO MATURITY BALANCE 12/31/01 $ 12.865,000 9 .230.000 $22,095,000 INCREASE $ 0 0 s 0 DECREASE $ 205.000 2.775.000 s 2,980,000 BALANCE 12/31/02 $12,660,000 6,455,000 $19,115,000 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 olso been used to compute the interest requirements on the general obligation debt that carries a variable interest rate lied directly to the prime rate. Deep-discount debt is reported at face value at maturity. 58 - - - - - - - - - .... - - ... - ... - - NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 TABLE 31: DEBT SERVICE REQUIREMENT TO MATURITY (DOLLARS IN THOUSANDS) INSTALLMENT TOTAL LONG TERM REVENUE PW TRUST CONTRACTS SPECIAL TOTAL LONG GO DEBT BONDS FUND LOANS CAPITAL LEASES ASSESSMENT TERM DEBT YEAR I PRINCIPAL INTEREST I PRINCIPAL INTEREST ! PRINCIPAL INTEREST I PRINCIPAL INTEREST I PRINCIPAL INTEREST ! PRINCIPAL INTEREST I 2003 1,417 1,635 1,870 l,483 727 93 7 0 0 0 4,021 3,211 2004 1,477 1,574 1,965 l,393 754 86 0 0 0 0 4,196 3,053 2005 1,376 1,684 2,065 1,292 692 78 0 0 0 0 4,133 3,054 2006 1,350 1,714 1,885 1,198 692 71 0 0 0 0 3,927 2.983 2007 1,407 1,720 1,980 1,105 586 63 0 0 0 0 3,973 2,888 2008 1,393 l,732 2,075 l,005 586 56 0 0 0 0 4,054 2.793 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1,490 1,520 1.575 1,655 1,720 1,810 1,900 1,995 2,095 1,615 1,705 l,800 1,885 285 1,613 1,070 1,010 947 862 774 681 583 479 371 287 199 108 14 2, 175 2,275 2.370 2,455 I, 150 1,105 l,145 765 805 1,000 1,000 l,000 1,045 1,100 908 806 706 595 487 447 396 341 307 270 217 165 112 58 TOTALS $ 31,470 $19,057 $31,230 $ 13,291 586 586 586 586 560 390 385 291 77 27 27 28 28 28 $ 8,222 s AMOUNT AVAILABLE FOR DEBT SERVICE 49 42 35 28 21 15 10 5 l 0 0 0 655 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 s 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 4,251 4,381 4,531 4,696 3,430 3,305 3,430 3,051 2,977 2,642 2.732 2,828 2.570 1,918 l.751 1,570 1.370 1,236 1.087 929 787 642 505 364 0 2,958 220 0 1,413 72 o po. 929 s 33,003 Fund balances that have been reserved for debt repayment are $2,030,335 in the debt service funds. CAPITAL LEASES The City entered into lease agreements in 1997 and 2000 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 that totaled $144.439, 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, 2002, the current portion of capital leases payable is $7 ,238. Table 32 provides the future minimum lease obligations and the net present value of these minimum lease payments as of December 31. 2002 . 59 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 TABLE 32: CAPITAL LEASE OBLIGATIONS YEAR ENDING DECEMBER 31, 2002 2003 Total Minimum Lease Payments Less: Interest PRESENT VALUE Of MINIMUM LEASE PAYMENTS GOLF COURSE FUND 7.301 7.301 63 $ 7,238 In April 2000. the City entered into an interlocal agreement along with the cities of Kent. Tukwila. Auburn. and Federal Way to form the Valley Communications Public Development Authority (PDA). The formation of the PDA is for the purpose of issuing and servicing bonds in order to provide financing to acquire land. and acquire. construct and equip a facility for the operations of the Valley Communications Center. The general obligation bonds were for $12.758,000 and each city is obligated to 20 percent of the obligation. At 2002. the City of Renton's portion of the obligation outstanding is $2.327,000. and is included in the 2002 limitation of indebtedness. NOTE 14 -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. 2002. there was a balance remaining of $16,000. NOTE 15 -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 CAPITAL TRUST & EQUITY RESERVED FOR: FUND SERVICE PROJECTS ENTERPRISE AGENCY TOTAL Debt Service/Arbitrage $ 0 $ 2,030.335 $ 0 $ lO, l 14.794 $ 0 $12,145.129 Advances/Other Funds/Prepaids 83,000 0 l.260,000 0 0 l,343,000 Future Use 0 0 0 0 0 0 Employees' Pension Benefits 0 0 0 0 8,220.452 8,220.452 TOTAL $ 83,000 ~ 2,030,335 ~ 1,260,000 ~10, 114,794 ~ 8,220,452 $21,708,581 60 - - ... - - - - - - - - - ... ... - NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 TABLE 34: UNRESERVED DESIGNATED FUND EQUITY EQUITY DESIGNATED FOR: GENERAL FUND Inmate Health & Welfare $ 44,494 Investigative Fund Confiscations 126. 711 TOTAL $ 171.205 NOTE 16 -SEGMENT INFORMATION FOR ENTERPRISE FUNDS The Cily 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, 2002 follows: TABLE 35: SEGMENT INFORMATION FOR ENTERPRISE FUNDS WATERWORKS SOLID GOLF TOTAL ENTERPRISE ITEM UTILITY AIRPORT WASTE COURSE FUNDS TOTAL OPERATING REVENUE $ 23.809.722 $ 786.412 $ 8,670,042 $ 2.229,894 $ 35,496,070 OPERATING EXPENSES: Operations & Maintenance 13.193,177 549.824 7.336.156 1.405,946 22.485.103 Administrative & General 2,560.881 121.981 0 0 2.682.862 Insurance 0 24.317 0 0 24,317 Taxes 1,741,414 0 1,092,628 9,728 2,843.770 De2eciotlon 3,763.961 157.190 25.931 247,294 4,194,376 Total Operating Ex~nses 21.259,433 853,312 8,454,715 1.662,968 32,230,428 Net Operating Income (Loss) 2.550.289 (66,900) 215,327 566,926 3.265.642 Non-Operating Revenue Net of Expenses (948,963) 24.450 139.602 (197.001) (981,912) O~oting Tronsfer5 In {Out) (10,0791 0 0 0 (10.079! Net Income ~Loss2 1 1,591.247 1 !42,4502 1 354,929 1 369,925 1 2,273,651 Net Working ca12itot i 12,331.711 i 3,242,105 i 1,235.504 i 1.318,894 i 18.128,214 Additions to Property, Plant and Eguif2!!!ent. Net of Dis12osals 11.502.468 561.144 (25.9311 (11.5001 12,026.181 Total Assets 185.977,984 9,370.585 1,488,816 10,746,280 207 ,583,665 Long Term Debt, Net of Current Portion & Bond PremiumlDiscount 32.463.651 0 0 3,452.864 35.916.515 Current Cae!tal Contributions 9,054,627 151,050 0 0 9,'205,677 TOTAL FUND EQUITY $ 149,885,326 $ 9,158,368 $ 1.258.n9 $ 6,916,8778 $ 1&7,219,301 NOTE 17 ·LITIGATION The Cily is involved in several pending lawsuits. The Cily Attorney estimates that the potential claims against the Cily not covered by insurance resulting from such litigation would not materially affect the financial statements of the Cily. 61 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 NOTE 18 ·RISK MANAGEMENT The City of Renton is exposed to various risks of loss related to tort; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City of Renton protects itself against unforeseen losses by utilizing a three-pronged risk management approach. First, the City self-funds first level losses through its Insurance Fund. Second, excess insurance is purchased to cover medium and large losses. And third, the City reserves the right to utilize the provisions of RCW 35A.31.060 to fund catastrophic or uninsured losses. This Stole statute allows cities to levy a non-voted property tax increase to pay for uninsured claims. An analysis of the self-insurance retention levels, limits of insurance, and claims administrators for the major types of coverage are presented in Tobie 36. During 2002, there were no reductions in insurance coverage, and settlements for the lost three years hove not exceeded insurance coverage. The City of Renton is a member of the Washington Cities Insurance Authority (WCIA). Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (lnterlocol Cooperation Act), nine cities originally formed WCIA on January l, 1981. WCIA was created for the purpose of providing a pooling mechanism for jointly purchasing insurance, jointly self- insuring, and/or jointly contracting for risk management services. WCIA hos a total of 105 members. New members initially contract for a three-year term, and thereafter automatically renew on on annual basis. A one-year withdrawal notice is required before membership con be terminated. Termination does not relieve a former member from its unresolved loss history incurred during membership. Liability coverage is written on on occurrence basis, without deductibles. Coverage includes general. automobile, police professional, public officials' errors or omissions, stop gap, and employee benefits liability. limits are $1 million per occurrence in the primary layer, $2 million per occurrence, subject to a $12 million annual aggregate, in the excess layer. and $11 million per occurrence in the second excess layer with no annual aggregate except $10 million per member for public officials errors and omissions. The· second excess layer is insured by the purchase of reinsurance and insurance. Total limits ore .$14 million per occurrence. The Board of Directors determines the limits and terms of coverage annually. Insurance coverage for property, automobile physiccll damage, fidelity, inland marine, and boiler and machinery are purchased on a group basis. Various deductibles apply by type of coverage. Property insurance and auto physical damage are self-funded from the members' deductible to $250,000, for all perils other than flood and earthquake, and insured above that amount by the purchase of reinsurance. In-house services include risk management consultation, loss control field services, claims and litigation administration, and loss analyses. WCIA contracts for the claims investigation consultants for personnel issues and land use problems, insurance brokerage, and lobbyist services. WCIA is fully funded by its members, who make onnuol assessments on a prospectively roted basis, as determined by on outside, independent actuary. The assessment covers loss, loss adjustment, and administrative expenses. As outlined in the interlocol, WCIA retains the right to additionally assess the membership for any funding shortfall. 62 - - - - - - - - - - - - - - NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 An investment committee, using investment brokers. produces additional revenue by investment of WCIA 's assets in financial instruments which comply with all State guidelines. These revenues directly offset portions of the membership's annual assessment. A Boord ot Directors governs WCIA. which is comprised of one designated representative from each member. The Boord elects on Executive Committee and appoints a Treasurer to provide general policy direction for the organization. The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day to day operations of WCIA. TABLE 36: RISK MANAGEMENT RISK RETENTION RISK SHARING TYPE OF COVERAGE OCCURRENCE CLAIMS ADMIN AGGREGATE CARRIER Property $ 25.000 WA Cities Ins Authority $ 500.000.000 WA Cities Ins Authority (per occurrence subject to sub-limits) Liability 250.000 WA Cities Ins Authorily 14,000,000 WA Cities Ins Authority (per occurrencel Auto Liabilily 250.000 WA Cities Ins Authority 14,000.000 WA Cities Ins Authority (per occurrencel Boiler & Machinery 5,000 Arthur J, Gallagher 50,000,000 Zurich Public Officials 250,000 WA Cities Ins Authority 10.000.000 WA Cities Ins Authority Crime 10.000 Arthur J, Gallagher l,000.000 Travelers Casualty & Surety Airport Liability 0 Arthur J, Gallagher 50.000.000 Ace Property & Casualty Underground Storage Tank 10.000 Arthur J, Gallagher l,000,000 Commerce & Industry Worker's Comp 300,000 Johnston & Culberson l,000,000 Midwest Casualty Employee Health 190,000 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 Tobie 36. As of December 31, 2002, the City hod accrued the following amounts for outstanding claims. TABLE 37: OUTSTANDING CLAIMS INCURRED/ INCURRED BUT NOT TOTAL CLAIMS COVERAGE REPORTED REPORTED PAYABLE Property & Liability $ 0 $ 359,920 359.920 Worker's Compensation 0 637,322 637,322 Employee Health 0 883,263 883.263 TOTAL s 0 Sl.880,505 Sl.880.505 Claims settlements and loss expenses ore accrued in the Insurance Fund for the estimated settlement value of both reported and unreported claims. The Insurance Fund is used for collecting intertund premiums from insured funds and deportments, and for paying claims settlements. lntertund premiums ore assessed on the basis of claims history. number of employees. and value of assets. Tobie 38 below presents changes in claims liabilities for 2001 ond2002. 63 ITEM Claims Uabiflties at Beginning of Yea Claims Expenses: C L.KTenf Year and Changes in Estimates Claims Payments Ctalms UabltHes at End of Year NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2002 TABLE 38: CHANGES IN CLAIMS LIABILITIES PROPERTY & LIABILITY 2002 2001 $ 302,875 $ 843. 175 530,482 117,648 WORKER'S EMPLOYEE COMPENSAllON HEALTH TOTALS I 2002 2001 I 2002 2001 2002 2001 $ 461.520 $ 369.456 $ 745,149 $ 549.333 $1,509,544 $1.761.964 854,084 751,649 5.439,671 4,929,067 6,824,237 5.798,364 (473.437) (657,948) (678,282) (659,585) (5,301.557) (4.733,251) (6.453.276) (6,050.784) $ 359,920 $ 302.875 $ 637,322 $ 461,520 $ 883,263 $ 745,149 $1,880.505 $ 1,509,544 NOTE 19 • SUBSEQUENT EVENTS On approximately March 5, 2003, the Washington State Court of Appeals overturned a lower court ruling in a previous summary judgment in favor of the City. The original lawsuit, filed by Scoccolo Construction Inc .. could have cost the City between $325,000 and $1 million before deductible. The City has paid about $100,000 and is appealing the decision. On June 30, 2003 a fire destroyed a building owned by the City known as the NARCO building. This building was used as a storage warehouse by thei City's Facilities Division. The building is considered a total loss. Preliminary estimates of the loss are between $50,000 and $100.000. The asset will be removed from fixed assets in 2003. NOTE 20 -ACCOUNTING AND REPORTING CHANGE The 2002 Budget was amended by Ordinance 4973 to create a new fund for the purpose of capturing all revenue and expenditures associated with the construction of the Henry Moses Aquatic Center. The appropriation approved by Council was $5,000,000 from excess funds. 64 Comprehensive · Report ·~ :~J; City of Renton, Washi ngton - - - - - - - - - - - - - ... ... - --------------------- GENERAL FUND DECEMBER 31, 2002 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 operations except for park. street, and library functions. which are accounted for in special revenue funds. The major resource to the General Fund is general tax revenue. Licenses and permits. charges for service and fines and forfeits provide additional support. 65 GENERAL FUND COMPARATIVE BALANCE SHEET DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 1OF1) 2002 2001 ASSETS: Cash and Cash Equivalents $ 2. 129,525 $ 6,562,612 Investments of Fair Value 2,000,000 753,059 Receivables: Taxes 419,588 396,255 Accounts 4.313,754 4, 139,046 Interest on Investments 134.165 86,391 Due From Other Funds 76 7.378 Due From Other Governmental Units 30,690 162,705 Prepaid Items 8,000 8,000 lnterfund Loans/ Advances -Non-Current 75,000 75,000 TOT Al ASSETS $ 2llQZ2f! $ l'l2Q~~~ LIABILITIES AND FUND EQUITY: LIABILITIES: Vouchers/Contracts Payable $ 208,130 $ 672,565 Due To Other Funds 400 104,827 Due To Other Governmental Units 1.435,890 1,332.776 Accrued Taxes Payable 4.972 2.921 Deposits Payable 16,905 44,299 Deferred Revenues 3.229,531 3,077,534 Accrued Employee Leave Benefits 211.834 209, 156 TOT AL LIABILITIES 5,107,662 5.444,078 FUND EQUITY: Fund Balance: Reserved for Future Use 0 235,053 Reserved for Advonces/Prepaids/Contingency 83,000 83,000 Unreserved -Designated: For Inmate Health & Welfare 44.494 40,251 For Investigative Fund Confiscations 126,711 90,140 Unreserved -Undesignated 3.748.931 6,297,924 TOTAL FUND EQUITY 4,003, 136 6,746,368 TOTAL LIABILITIES AND FUND EQUITY $ 2 llQZ2!l $ ]' 12Q!1!1~ 66 - GENERAL FUND STATEMENT OF REVENUES. EXPENDrTURES. AND CHANGES IN FUND BALANCE -YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 1OF1} -2002 2001 REVENUES Taxes $ 32.01'.248 $ 31,482,675 -licenses And Permits 2.371.596 2.110.600 Intergovernmental Revenues 1,941,063 1,966.122 Charges For Services 4.121.B70 4,196,915 Fines And Forfeits 948.861 944,671 -Contributions 40,133 101,763 Interest 555.023 1.208.-435 Miscellaneous Revenues 70,013 158.530 TOTAL REVENUES 42.062,807 42,169,731 -EXPENDITURES Current: General Government 10,172,983 B,977.920 Security Of Persons And Property 24.926.075 23.596.319 -Physical Environment l.897.165 1,878,916 Economic Environment 3,605.013 3.487.376 Mental And Physical Health 11,445 6,756 Culture and Recreation 903 177,039 -Capitol Outlay 24,221 141,210 Debt Service: Principal Retirement 0 0 Interest & Fiscal Charges 0 0 TOT AL EXPENDITURES 40.637.805 38,265.536 EXCESS (DEFICIENCY} OF REVENUES OVER EXPENDITURES l.425.002 3.904,195 -OTHER FINANCING SOURCES (USES} Proceeds Of Long-Term Debt 0 0 Operating Transfers In 0 0 Operating Transfers (Out} (4,273.059) (5.550.000) -Other Financing (Uses) 0 0 Sole Of General Fixed Assets 104.825 55.168 TOTAL OTHER FINANCING SOURCES (USES} j4.168,2341 j5.494.8321 -EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES 12.743.2321 p .590.6371 FUND BALANCE JANUARY 1 6.746.368 8.337.005 -Residual Equity Transfers In 0 0 Residual Equity Transfers Out 0 0 Prior Period Corrections 0 0 FUND BALANCE DECEMBER 31 $ ~ QQa i~tt $ ti Z~tt ~g§ - ... - - - -67 GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE, BUDGEr AND ACTUAL YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 1OF1) GENERAL VARIANCE FAVORABLE 2001 BUDGEl ACTUAL <UNFAVORABLE> ACTUAL REVENUES Taxes $ 32,987,200 $ 32.055,823 $ (931,377) $ 31.425.590 licenses And Permits 1.734,400 2.414.304 679,904 2,058,472 Intergovernmental Revenues 2,064,200 2,145,773 81,573 1.899,550 Charges For Services 3.75e.,500 4.169,406 410,906 4,149,310 Fines And Forfeits 854,600 1,004,893 150.293 959,047 Contributions S,000 # 40,133 35,133 101.783 Interest 711',400 444.484 (274,916) 1.491,789 Miscellaneous Revenues 25,000 63,947 38,947 157,877 TOTAL REVENUES 42,148,300 42.338.763 190,463 42,243,418 EXPENDITURES Current: General Government 9,725,795 10,171.520 (445,725) 8,979,435 Security Of Persons And Property 25.439,000 24,924,380 514,620 23.569,864 Physlcal Environment 2.052.200 1,898,665 153,535 1,878,956 Economic Environment 4.037,721 3,604,368 433,353 3,485, 129 Mental And Physical Health 10.600 11,445 (845) 6.756 Culture And Recreation 0 977 (977) 176,966 Capital Outlay 88.000 24,878 63,122 140,554 TOTAL EXPENDITURES 41,353,316 40,636,233 717,083 38,237,660 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 794,984 1,702,530 1526,6201 4,005,758 OTHER FINANCING SOURCES (USES) Operating Transfers (Out) (4.273,058) (4,273,059) (50,000) (5,550,000) Sale Of General Fixed Assets 0 104,825 55,168 55,168 TOTAL OTHER FINANCING SOURCES (USES) 14,273,0581 14, 168,2341 5,168 15.494,8321 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES 13.478,0741 12.465.7041 1521.4521 (1,489,0741 FUND BALANCE JANUARY I 6,255,515 6,255,515 0 7,744.589 FUND BALANCE DECEMBER 31 $ 2 zzz ~~] $ JZt\2~ll $ (~21 ~~21 $ Q2~~~]~ 68 Comprehensive ~I • ~~I ~l"\ Report ~· City of Renton, Washi11gton - - - - - - - - - - - - - ... ... - - - SPECIAL REVENUE FUNDS DECEMBER 31, 2002 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 'h 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 lax 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. Library Fund: Accounts for operation of the City's library system, including central and branch facilities. Resources to the fund are mainly general tax revenues and library fines. Hotel/Motel Tax Fund: Accounts for monies collected as a result of SSB 5867, which allows Washington Slate cities to impose an increase in the hotel/motel tax of up to 1 percent for the purpose of increasing tourism. The Renton City Council adopted the tax on December 15, 1997. 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 13) of the State levied motor vehicle fuel fax distributed to Renton, is allocated to this fund each year. One Percent for Art Fund: Established to account for required City's contribution equal to 13 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 . 69 SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 200~' WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 {PAGE 1 OF2J COMMUNITY PARK ARTERIAL STREET DEVELOPMENT STREET BLOCK GRANTS ASSETS: Cash and Cash Equivalents $ 1,178,916 $ 54,755 $ 706,038 $ 74,931 Investments at Fair Value 250,000 100,000 250,000 0 Receivables: Accounts 21,603 0 18,970 0 Interest on Investments 81,222 119 297 0 Due From Other Funds 0 0 29,225 0 Due From Other Governmental Units 3,000 0 0 61.683 TOT AL ASSETS $ I:!~~ Z~l $ i~~ az~ $ I QQ~ ~'2 $ l~~I~ LIABILITIES AND FUND EQUITY: LIABILITIES: Vouchers/Contracts Payable $ !:3,011 $ 0 $ 18.545 $ 5,719 Accrued Taxes Payable 4.719 0 618 0 Deposits Payable 21,200 0 0 0 Accrued Employee leave Benefits 36,406 0 24.469 0 lnterfund Loans/ Advances -Non-Current 0 0 0 75,000 TOTAL LIABILITIES 115,336 0 43,631 80,719 FUND EQUITY: Fund Balance: Unreserved -Undesignated 1,419,405 154,874 960,898 55,896 TOTAL FUND EQUITY 1,419.405 154,874 960,898 55,896 TOTAL LIABILITIES AND FUND EQUITY $ l i2~~ Z~l $ l!.i~az~ $ l QQ~~~ $ ]~~~]:! 70 - SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET -DECEMBER 31. 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 {PAGE2 OF2J -CABLE COMPARATIVE TOTALS LIBRARY HOTEL/ PATHS ONE PERCENT COMMUNICATIONS MOTEL TAX & TRAILS FOR ART DEVELOPMENT 2002 2001 -$ 235.009 $ 262,049 $ 2.806 $ 81,645 $ 191,881 $ 2.788,230 $ 5.400,2•9 0 0 0 0 0 600.000 0 0 7.600 0 0 0 48.172 32.183 -1A33 0 0 0 9,357 92,428 54.909 0 0 0 0 0 29.225 23.52• 0 0 0 0 0 64.683 61,038 $ 236 442 $ 269 649 $ 2896 $ a1 a45 $ 201 238 $ 36n z38 $ 5 571 903 $ 7,904 $ 0 $ 0 $ 0 $ 4,382 $ 89,560 $ <60,278 0 0 0 0 0 5,337 7,005 0 0 0 0 0 21.200 23.200 9,237 0 0 0 0 70.112 68,399 0 0 0 0 0 75,000 75.000 17,141 0 0 0 4,382 261,209 633,882 - 219.301 269,649 2.806 81.845 196,857 3.361.529 4,938.021 -219.301 269,649 2.806 81,845 196,857 3,361.529 •.938.021 $ 2¥442 $ 269 649 $ 2806 $ 81 845 $ 201 238 $ 3 622 738 $ 5 571 903 - - - ... ... ... ... - -71 SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE l OF 2) COMMUNITY PARK ARTERIAL STREET DEVELOPMENT STREET BLOCK GRANTS REVENUES Taxes $ 7,849,375 $ 0 $ 4,261,370 $ 0 Licenses And PeITTlits 0 0 35,644 0 Intergovernmental Revenues 7,500 347.983 765,854 264,231 Charges For Services 1,376,315 0 799,023 0 Fines And Forfeits 0 0 0 0 Contributions 7,.495 0 0 0 Interest 117,.535 4,196 15,090 0 Miscellaneous Revenues 6,443 0 10,861 0 TOTAL REVENUES 9,364,663 352. 179 5,887,842 264,231 EXPENDITURES Current: General Government 2,222/?56 0 0 0 Transportation 151,602 0 5,491,221 0 Economic Environment 568,S47 0 0 264,536 Culture and Recreation 5,925,865 0 0 0 Capital Outlay 12,925 0 0 0 TOT AL EXPENDITURES 8,881.1!95 0 5,491,221 264,536 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 482,768 352.179 396,621 13051 OTHER FINANCING SOURCES (USES) Proceeds Of Long-Term Debt 0 0 0 0 Operating Transfers In 0 0 0 0 Operating Transfers (Out) (2, 100,COO) (353,500) (425,000) 0 Sale Of General Fixed Assets 0 0 0 0 TOTAL OTHER FINANCING SOURCES (USES) 12.100.~ 1353.5001 1425,0001 0 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES p ,617,2321 p.3211 (28,3791 13051 FUND BALANCE JANUARY l 3,036,637 156,195 989,278 56,201 FUND BALANCE DECEMBER 31 $ I !12~Qi:i $ 1:2!aZ! $ 2~a22 $ i:ii:ia2~ 72 - SPECIAL REVENUE FUNDS -COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 20)1 (PAGE20F 2} -ONE CABLE TOTALS LIBRARY HOTEL/ PATHS PERCENT COMMUNICATIONS MOTEL TAX & TRAILS FOR ART DEVELOPMENT 2002 2001 - $ 1,425.000 $ 148.797 $ 0 $ 0 $ 30.000 $ 13.714,542 $ 14,431,447 0 0 0 0 0 35,644 40,568 0 0 0 0 0 l ,385,568 1.357,694 -8.296 0 0 0 0 2,183.634 1.631.534 38,306 0 0 0 0 38.306 34.046 10.775 64.501 0 0 0 82.771 15,406 2,131 3,740 0 1.437 13,636 157,765 235.070 -62 0 0 0 3.000 20.366 510.847 1.484,570 217,038 0 1,437 46,636 17.618,596 18,256.612 -0 0 0 0 0 2.222,956 2,084,978 0 0 0 0 0 5,642,823 5.545.590 0 214,727 0 0 0 l ,047,810 990,159 -1.-424,154 0 0 0 30.414 7,380,433 7.083.039 762 0 0 23,071 0 36,758 34,992 1.424.916 214,727 0 23,071 30.414 16,330.780 15,738.758 ... 59,654 2,311 0 (21,634! 16.222 1,287,816 2.517,854 0 0 0 0 0 0 75.000 0 0 0 14,192 0 14, 192 63.085 0 0 0 0 0 (2.878.500) ( l.616.700) 0 0 0 0 0 0 517 0 0 0 14,192 0 12.864.308] p ,478,098] - 59,654 2,311 0 17.442] 16,222 {1.576,492! 1,039,756 -159.645 267.337 2.806 89,287 180,635 4,938,021 3,898,265 $ 219 299 $ 269 648 $ 2896 $ 81 845 $ 196 857 $ 3 361 s29 $ 4 93B 021 - .. ... - - 73 SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL YEAR ENDED DECEMBER 31. 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 1OF7) PARK VARIANCE FAVORABLE 2001 BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES Taxes $ 8,0CXJ,(()() $ 7,849,375 $ (150,625) $ 9,277,822 Licenses And Permits 0 0 0 0 Intergovernmental Revenues 0 0 0 7,500 Charges For Services 822,300 844,788 22,488 776,803 Fines And Forfeits 0 0 0 0 Contributions 0 11,995 11,995 12,492 Interest 500 39,907 39,407 91,856 Miscellaneous Revenues 458,500 541,012 82,512 481,829 TOT AL REVENUES 9,281,300 9,287,077 5,777 10,648,302 EXPENDITURES Current: General Government 2.437,000 2.222,945 214,055 2,085,311 Transportation 193,900 151,601 42,299 176,505 Economic Environment 625,100 568,603 56.497 610,211 Culture and Recreation 6,088,022 5,926,295 161,727 5,710,447 Capital Outlay 0 0 0 0 TOTAL EXPENDITURES 9,344,022 8,869,444 474,578 8,582,474 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 162,722) 417,633 1468,8011 2,065,828 OTHER FINANCING SOURCES (USES) Proceeds of Long-Term Debt 0 0 0 0 Operating Transfers In 0 0 0 0 Operating Transfers (Out} (2,100.000) (2, 100,000) 0 (800,000) Sale Of General Fixed Assets 0 0 0 0 TOTAL OTHER FINANCING SOURCES (USES) 12. 100.0001 12. 1 00.0001 0 1800,000I EXCESS (DEFICIENCY) OF REVENUES ANO OTHER FINANCING SOURCES OVER EXPENDITURES ANO OTHER FINANCING USES 12. 162, 7221 ll.682,3671 1468,8011 1.265,828 FUND BALANCE JANUARY l 2,958,898 2,958,898 0 1,693,070 FUND BALANCE DECEMBER 31 $ Z2Q lZQ $ l 2ZQ~l $ (~ga 6Ql I $ 2 2~a2a 74 SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES. EXPENDITURES. -AND CHANGES IN FUND BALANCE. BUDGET AND ACTUAL YEAR ENDED DECEMBER 31. 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 {PAGE20F 7) -ARTERIAL STREET STREET VARIANCE VARIANCE -FAVORABLE 2001 FAVORABLE 2001 BUDGET ACTUAL <UNFAVORABLE> ACTUAL BUDGET ACTUAL <UNFAVORABLE> ACTUAL -$ 0 $ 0 $ 0 $ 0 $ 4, 118,BCX) $ 4.261.370 $ 142,570 $ 3.B19.293 0 0 0 0 30.000 24.306 (5.694) 39.610 338,400 347,983 9,583 345.619 743.000 765.854 22.854 739,186 0 0 0 0 956.400 793.322 (163,07B) 851.153 0 0 0 0 0 0 0 0 -0 0 0 0 0 0 0 0 6.000 6,960 960 7.780 10,()(X) 21,999 11,999 36,670 0 0 0 0 25.000 10,861 [14.1391 6,754 344.400 354.943 10,543 353,399 5.883.200 5.877.712 (5.4881 5.492.666 - 0 0 0 0 0 0 0 0 -0 0 0 0 5,910.200 5,490,677 419,523 5,367.859 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 5.910.200 5.490.677 419.523 5,367.859 344,400 354,943 10,543 353.399 (27.0001 387.035 1425.0111 12-4.807 - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (353,500) (353.500) 0 (353.500) (425,000) (425.000) 0 (450.000) -0 0 0 0 0 0 0 517 (353.500) (353.5001 0 (353.5001 1425.0001 (425.0001 0 (449,4831 -19.1001 1,443 10543 [1011 1452.0001 137,9651 1425.0111 1324.6761 152.968 152.968 0 153,069 974.463 974,463 0 1.299.139 $ l~~a~ $ l:Z~ ~ll $ ]Q:i~ $ l:Z22~ $ :z~~QJ $ 2Jtt ~2B $ [~2:ZQIJI $ 2Z~~~ ... ... ... - -75 SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE3 OF 7) COMMUNITY DEVELOPMENT BLOCK GRANTS VARIANCE FAVORABLE 2001 BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES Taxes $ 0 $ 0 $ 0 $ 0 Licenses And Permits 0 0 0 0 Intergovernmental Revenues 29~~.100 263,586 (28,514) 250.543 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 292.100 263,586 (28,5141 250,543 EXPENDITURES Current: General Government 0 0 0 0 Transportation 0 0 0 0 Economic Environment 292, 100 264,536 27,564 260,388 Culture and Recreation 0 0 0 0 Capital Outlay 13,000 0 13,000 0 TOTAL EXPENDITURES 305,100 264,536 40,564 260,388 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES p3,000! 19501 (69,0781 (9,8451 OTHER FINANCING SOURCES (USES) lnterfund Loon Proceeds 0 0 0 0 Operating Transfers In 0 0 0 50,000 Operating Transfers (Out) 0 0 0 0 Sole Of General Fixed Assets 0 0 0 0 TOTAL OTHER FINANCING SOURCES (USES) 0 0 0 50,000 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES !13,0001 !9501 (69,0781 40,155 FUND BALANCE JANUARY 1 (4.8361 (4.8361 0 (44,9911 FUND BALANCE DECEMBER 31 $ !JZ ~QI $ (~~QI $ IQ2Q~I $ l~a~QI 76 -----------.... -... -------------- - SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES. EXPENDITURES, -AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 40F 7) -LIBRARY HOTEL/MOTEL TAX VARIANCE VARIANCE -FAVORABLE 2001 FAVORABLE 2001 BUDGET ACTUAL <UNFAVORABLE> ACTUAL BUDGET ACTUAL <UNFAVORABLE> ACTUAL -$ 1.400.000 $ 1,425.000 $ 25.000 $ 1, 141.872 $ 130.000 $ 148,797 $ 18.797 $ 162.460 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8.296 8,296 7.740 0 0 0 0 29,000 38.306 9,306 34.046 0 0 0 0 -1,500 10.775 9.275 2.914 0 56,901 56.901 0 8,600 2.131 (6.469) 6,584 5.000 3,740 (1.260) 8.532 0 62 62 8 0 0 0 0 1.439,100 1.484.570 45.470 1,193,164 135.000 209,438 74,438 170.992 - 0 0 0 0 0 0 0 0 -0 0 0 0 0 0 0 0 0 0 0 0 275.938 214,727 61,211 119,746 1,-438,100 1,424,384 13,716 1.357.485 0 0 0 0 1,000 762 238 0 0 0 0 0 -1,439,100 1.425, 146 13.954 1,357.485 275.938 214,727 61,211 119,746 0 59.424 31.516 1164.321j 1140.9381 15.2891 13,227 51,246 - 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 59.424 31.516 1164,321j 1140.938) 15,2891 13,227 51,246 167,679 167,679 0 332.000 267.337 267.337 0 216.091 -$ 167 679 $ 227 103 $ 31 516 $ 167 679 $ 126 399 $ 262 048 $ 13227 $ 267 337 .. - .. - - 77 SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES JN FUND BALANCE. BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31. 2001 (PAGE5 OF 7) PATHS AND TRAILS VARIANCE FAVORABLE 2,001 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 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 0 0 0 0 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 TOT Al EXPENDITURES 0 0 0 0 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 0 0 0 0 OTHER FINANCING SOURCES (USES) lnterfund Loan Proceeds 0 0 0 0 Operating Transfers In 0 0 0 0 Operating Transfers (Out) 0 0 0 0 Sole Of General Fixed Assets 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 0 0 0 0 FUND BALANCE JANUARY I 2,807 2,807 0 2,807 FUND BALANCE DECEMBER 31 $ 2 aaz $ 2 aaz $ $ 2a2Z 78 - SPECIAL REVENUE FUNDS -COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL YEAR ENDED DECEMBER 31. 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31. 2001 (PAGE60F 7) -ONE PERCENT FOR ART CABLE COMMUNICATIONS DEVELOPMENT VARIANCE VARIANCE -FAVORABLE 2001 FAVORABLE 2001 BUDGET ACTUAL <UNFAVORABLE> ACTUAL BUDGET ACTUAL <UNFAVORABLE> ACTUAL -$ 0 $ 0 $ 0 $ 0 $ 30.000 $ 30,000 $ 0 $ 30.000 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 1,437 1,437 896 6.000 1,289 (4.711) 7,427 0 0 0 0 0 3000 3.000 l.500 0 1,437 1,437 B96 36.000 34 289 11.711 I 38,927 - 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 30.800 30.413 387 lB,158 75.000 23,071 51,929 15.900 0 0 0 19.092 -75.000 23,071 51,929 15,900 30.800 30,413 387 37.250 175.000) 121.634) 150,492) j15.004) 5.200 3,876 l2.09B) 1.6n - 0 0 0 75.000 0 0 0 0 0 14.192 14, 192 13,085 0 0 0 0 0 0 0 (13.200) 0 0 0 0 -0 0 0 0 0 0 0 0 0 14,192 14.192 74,885 0 0 0 0 -175.000) 17.442) 136.300) 59,881 5.200 3,876 12.098) 1.677 89.287 89,287 0 29,406 172,214 172 214 0 170.537 $ 14287 $ 81 845 $ {36 3001 $ 89 287 -$ 177 414 $ 176()90 $ 120981 $ 172214 - ... 79 SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31. 2001 (PAGE 70F 7) TOTALS VARIANCE FAVORABLE 2001 BUDGEr ACTUAL <UNFAVORABLE> ACTUAL REVENUES Taxes $ 13,678,800 $ 13,714,542 $ 35,742 $ 14,431,447 licenses And Permits 30,000 24,306 (5.694) 39.610 Intergovernmental Revenues l.37:i.500 1.377.423 3.923 1,342,848 Charges For Services 1,778,700 l,646,406 (132,294) 1.635.969 Fines And Forfeits 2S'.000 38.306 9,306 34,046 Contributions 1,500 79.671 78.171 15,406 Interest 3b.l00 77.463 41,363 159,745 Miscellaneous Revenues 48::~.soo 554.935 71.435 490,091 TOTAL REVENUES 17,411,100 17.513,052 101,952 18,149.162 EXPENDITURES Current: General Government 2.431'.000 2.222.945 214,055 2,085,31 l Transportation 6,104, 100 5.642,278 461.822 5,544,364 Economic Environment 1,193,138 J,047,866 117.708 990.345 Culture and Recreation 7,556,922 7,381,092 175.830 7.086.090 Capitol Outlay 89.000 23,833 52,167 34,992 TOTAL EXPENDITURES 17.380,160 16.318.014 1.021.582 15,741,102 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 30.940 1,195,038 [919,6301 2.408.060 OTHER FINANCING SOURCES (USES) lnterfund Loon Proceeds 0 0 0 75,000 Operating Transfers In 0 14.192 14.192 63.085 Operating Transfers (Out) (2.878.500) (2.878.500) 0 (l ,616.700) Sole Of General Fixed Assets 0 0 0 517 TOTAL OTHER FINANCING SOURCES (USES) [2.878,5001 [2.864,3081 14,192 [l.478.0981 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES [2.847,5601 I' .669.2701 [905.4381 929.962 FUND BALANCE JANUARY l 4.780.817 4,780.817 0 3.851.128 FUND BALANCE DECEMBER 31 $ l 2Ja 2i2Z $ ~ 111 ~z $ !2Q~ ~af!l $ ~ Z~l Q2Q 80 Report ~~City of Renton , Washington - - - - - - - - - - - - ... - - - - - DEBT SERVICE FUNDS DECEMBER 31, 2002 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. In 2002, the City made its final debt payment for the 1983 Unlimited General Obligation Refunding Bond. Also, the City was no longer required to maintain the Special Assessment Guaranty Fund, as all debt had been paid to satisfy any outstanding balances of bonds and coupons. 1997 Limited General Obl!qatlon 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. 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 Obllgatlon 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. 81 DEBT SERVICE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 {PAGE l OF 2) 1989 LIMITED 1997 LIMITED 1978 LIMITED GO REFUNDING GO BONDS GO BONDS BONDS ASSETS: Cash and Cash Equivalents $ 11,299 $ 24,261 $ 0 Cash With Fiscal Agent 0 0 100,000 Investments at Fair Value 0 0 0 Receivables: Taxes 0 0 0 Special Assessments -Delinquent 0 0 0 Special Assessments -Deferred 0 0 0 Interest -Special Assessments 0 0 0 Interest on Investments 0 0 0 Due From Other Funds 0 0 0 TOT AL ASSETS $ l l 222 $ 2~ 21il $ lQQ QQQ LIABILITIES AND FUND EQUITY: LIABILITIES: Matured Interest Payable 0 0 100,000 Deferred Revenues 0 0 0 TOT AL LIABILITIES 0 0 100,000 FUND EQUITY: Fund Balance: Reserved for Debt Service 11,299 24.261 0 TOTAL FUND EQUITY 11,299 24,261 0 TOTAL LIABILITIES AND FUND EQUITY $: 11 222 $ 2~21il $ ]QQQQQ 82 - DEBT SERVICE FUNDS COMBINING BALANCE SHEET -DECEMBER 31. 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 20F2) -GENERAL SPECIAL COMPARATIVE TOTALS GOVERNMENT 1989 UNLIMITED ASSESSMENT M~C DEBT GO BONDS DEBT 2002 2001 -$ 497,395 $ 560,698 $ 453,976 $ J.547,629 $ 2.475,267 24,000 10.000 25.000 159,000 292,000 444.870 0 0 444,870 0 -0 14,969 0 14,969 18,093 0 0 1.148 1,148 658 0 0 383.772 383,772 697,169 0 0 23,227 23,227 385 1.279 0 11.781 13,060 1.732 -0 400 0 400 52,496 $ 967 544 $ 586 067 $ 898 90:1 $ 2 588075 $ 3 537 800 -24,000 10.000 25,000 159,000 292,000 0 14.968 383,772 398.740 715,262 24,000 24.968 408,772 557.740 1,007,262 - 943,544 561.099 490, 132 2.030,335 2,546.129 943,544 561.099 490, 132 2.030.335 2.546,129 -$ f~Z 54~ $ ::iati CtiZ $ §~ 90:1 $ ii?~l2~ $ Ji!i:iJJfi - - - - - - 83 DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 1 OF2) 1989 LIMITED 1983 UNLIMITED 1997 LIMITED 1978 LIMITED GO REFUNDING GO REFUNDING GO BONDS GO BONDS BONDS BONDS REVENUES Taxes $ 650,000 $ 500 $ 300.200 $ 0 Special Assessments 0 0 0 0 Interest 54 303 1.417 1,719 TOTAL REVENUES 650,054 803 301.617 1.719 EXPENDITURES Debt Service: Principal Retirement 0 0 290,000 140,000 Interest & Fiscal Charges 652.068 7 10.355 4.460 TOTAL EXPENDITURES 652,068 7 300,355 144.460 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES {2.014) 796 1,262 {142.741 I OTHER FINANCING SOURCES (USES) Proceeds Of Long-Term Debt 0 0 0 0 Operating Transfers In 0 0 0 0 Operating Transfers (Out) 0 0 (54,202) (372.256) Funds Remitted to Bond Trustee 0 0 0 0 TOTAL OTHER FINANCING SOURCES (USES) 0 0 {54.2021 {372.2561 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES {2.0141 796 {52,9401 {514,9971 FUND BALANCE JANUARY 1 13.314 23.465 52.940 514,997 FUND BALANCE DECEMBER 31 $ l l iXlQ $ 2~ 2~1 $ $ 84 DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE2 OF 2) -GENERAL GOVERNMENT SPECIAL SPECIAL TOTALS MISCELLANEOUS 1989 UNLIMITED ASSESSMENT ASSESSMENT DEBT GO BONDS DEBT GUARANTY 2002 2001 ... $ 1,320,130 $ 510,897 $ 0 $ 0 $ 2.781.727 $ 2,888,502 0 0 336.239 0 336.239 303,939 31.750 5,219 76.819 !9.2871 107,994 201.515 -1,351,880 516, 116 413.058 j9,2871 3.225,960 3,393,956 939,269 34S.OOO 135.000 0 1,849.269 2,086,447 ... 416.463 159,388 11.290 0 1,254,031 1,003.044 1,355,732 504,388 146,290 0 3.103 300 3,089,491 -j3.852I 11,728 266.768 j9.2871 122,660 304,465 0 0 0 0 0 14,029.950 -830.759 0 0 0 830,759 77.650 (500.000) 0 (390,621) (152.132) (1.469.211) (710,000) 0 0 0 0 0 j13,809,4311 330,759 0 !390.6211 1152, 1321 !638,4521 j411,8311 - 326,907 11,728 p23.853I p61,4191 !515.7921 j107,3661 616.637 549,370 613,985 161,419 2.546 127 2,653,495 -$ 2~J ~~~ $ ~~) Q2§ $ ~~JJ2 $ $ 2~m $ 2 ~~ 122 - - - - - - - 85 DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE I OF 6) 1997 LIMITED GENERAL OBLIGATION BOND VARIANCE FAVORABLE 2001 BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES Taxes $ 650,000 $ 650,000 $ 0 $ 735,765 Special Assessments 0 0 0 0 Interest 0 54 54 362 TOTAL REVENUES 65(1,()()() 650,054 54 736, 127 EXPENDITURES Debt Service: Principal Retirement 0 0 0 310,000 Interest & Fiscal Charges 65.5,000 652,068 2,932 422,411 TOTAL EXPENDITURES 65.5.000 652,068 2,932 732,411 EXCESS (DEFICIENCY} OF REVENUES OVER EXPENDITURES !!i,0001 (2,0141 2,9B6 3,716 OTHER FINANCING SOURCES (USES) Proceeds Of long-Term Debt 0 0 0 793 Operating Transfers In 0 0 0 0 Operating Transfers (Out} 0 0 0 0 TOT AL OTHER FINANCING SOURCES (USES) 0 0 0 793 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES 1s.0001 (2,0141 2,986 4,509 FUND BALANCE JANUARY 1 13,314 13,314 0 8,805 FUND BALANCE DECEMBER 31 $ §Jl~ $ l l JQQ $ 226~ $ lJJl~ 86 DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, -AND CHANGES IN FUND BALANCE. BUDGET AND ACTUAL YEAR ENDED DECEMBER 31. 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE20F 6) -1978 LIMITED GENERAL OBLIGATION BOND 19B9 LIMITED GENERAL OBLIGATION REFUNDING BOND VARIANCE VARIANCE -FAVORABLE 2001 FAVORABLE 2001 BUDGET ACTUAL <UNFAVORABLE> ACTUAL BUDGET ACTUAL <UNFAVORABLE> ACTUAL -$ 500 $ 500 $ 0 $ 500 $ 300,200 $ 300,200 $ 0 $ 305,425 0 0 0 0 0 0 0 0 0 303 303 3,764 1,417 1,417 0 6, 1<43 500 803 303 4,264 301,617 301,617 0 311.568 - 0 0 0 0 290,000 290,000 0 275.000 500 7 493 3 10,200 10,355 p55l 30,Q.40 -500 7 493 3 300,200 300,355 1155! 305,CMO 0 796 796 4.261 1,417 1,262 p551 6.528 - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 p60.000! 154,538! 154,202! 156 0 -0 0 0 p60.000! 154.538! 154,202! 156 0 0 796 796 p55,739! 153.121! (52.940! 6,528 23.465 23,465 0 179.204 52,942 52,942 0 4M14 $ 2J~'2~ $ 2~2'21 $ Z2'2 $ ~~gi:z $ IJZ21 $ $ $ :i22~2 - - - - - 87 DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31. 2001 (PAGE30F 6) 1983 UNLIMITED GENERAL OBLIGATION REFUNDING BOND VARIANCE FAVORABLE 2001 BUDGET ACTUAL <UNFAVORABLE> ACTUAL REVENUES Taxes $ 0 $ 0 $ 0 $ 0 Special Assessments 0 0 0 0 Interest li',047 17,047 0 17.415 TOTAL REVENUES 17,047 17.047 0 17,415 EXPENDITURES Debt Service: Principal Retirement 14(1,000 140.000 0 130,000 Interest & Fiscal Charges 4,800 4.460 340 12,540 TOTAL EXPENDITURES 144.800 144,460 340 142,540 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES fl 27.753! 1127,413! 340 (125.1251 OTHER FINANCING SOURCES (USES) Proceeds Of Long-Term Debt 0 0 0 0 Operating Transfers In 0 0 0 0 Operating Transfers (Out) 1371.9161 1372.2561 13401 0 TOTAL OTHER FINANCING SOURCES (USES) 1371.1J& 1372.2561 13401 0 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES 1499.6691 1499,6691 0 jl 25.1251 FUND BALANCE JANUARY 1 499,669 499.669 0 624,794 FUND BALANCE DECEMBER 31 $ $ $ $ ~226~ 88 ------------------- DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES. -AND CHANGES IN FUND BALANCE, BUDGET ANO ACTUAL YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 40F 6) -GENERAL GOVERNMENT MISCELLANEOUS DEBT 1989 UNLIMITED GENERAL OBLIGATION BOND VARIANCE VARIANCE -FAVORABLE 2001 FAVORABLE 2001 BUDGET ACTUAL <UNFAVORABLE> ACTUAL BUDGET ACTUAL <UNFAVORABLE> ACTUAL -$ 924.800 $ 1,372.462 $ 447,662 $ l,39B.393 $ 496,700 $ 510,660 $ 13,960 $ 523,017 0 0 0 0 0 0 0 0 323.600 30.471 1293.1291 27.237 7.500 5.219 12.2811 10.403 1.248.400 1.402.933 154,533 1.425.630 504,200 515.879 11.679 533,420 - 939,300 939,269 31 856,447 345,000 345,000 0 330,000 419,000 416,462 2,538 122.254 160,200 159,388 812 174,705 -1.358.300 1.355.731 2.569 978,701 505,200 504.388 812 504,705 j109,9001 47.202 157.102 446.929 p .0001 11,491 10,867 28.715 - 0 0 0 0 0 0 0 0 77,700 830,759 753,059 77,650 0 0 0 0 1soo.0001 1soo.0001 0 1550,0001 0 0 0 0 -1422.3001 330.759 753,059 1472.3501 0 0 0 0 -1532,2001 377,961 910,161 125,4211 p .0001 11.491 10.867 28.715 564,305 564,305 0 589.726 549,206 549,206 0 520,491 $ ~'l~ $ 2~' ;.?~Q $ 2JQ l~l $ ~~~ $ ~~2Q6 $ ~60 62Z $ 1Qa6Z $ ~206 - - - - - .. - 89 DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 50F 6) SPECIAL ASSESSMENT DEBT SERVICE FUND VARIANCE FAVORABLE 2001 BUDGEl ACTUAL <UNFAVORABLE> ACTUAL REVENUES Taxes $ 0 $ 0 $ 0 $ 0 Special Assessments 29:l.OOO 312,908 19,908 333,056 Interest 4:'.i,100 52,070 8,970 101.677 TOT AL REVENUES 336,100 364,978 28.878 434,733 EXPENDITURES Debt Service: Principal Retirement 14!i,OOO 135,000 10,000 185,000 Interest & Fiscal Charges 2S,OOO 11.290 13.710 21,364 TOTAL EXPENDITURES 170,000 146,290 23.710 206,364 EXCESS (DEFICIENCY} OF REVENUES OVER EXPENDITURES 166,100 218,688 5,168 228,369 OTHER FINANCING SOURCES (USES) Proceeds Of Long-Term Debt 0 0 0 0 Operating Transfe~ In 0 0 0 0 Operating Transfers (Out) j40:l,OOOI j390,621J 12,379 0 TOTAL OTHER FINANCING SOURCES (USES) j40:l,OOOI j390,621J 12,379 0 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (236,900! jl71.9331 17,547 228,369 FUND BALANCE JANUARY I 60:1,088 603,088 0 374,719 FUND BALANCE DECEMBER 31 $ J~{1 ]fla $ ~Jl Bi::! $ lZ::!~Z $ ~~Qaa 90 - DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, -AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL YEAR ENDED DECEMBER 31. 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 6 OF 6) -SPECIAL ASSESSMENT GUARANTY FUND TOTALS VARIANCE VARIANCE -FAVORABLE 2001 FAVORABLE 2001 BUDGET ACTUAL <UNFAVORABLE> ACTUAL BUDGET ACTUAL <UNFAVORABLE> ACTUAL -$ 0 $ 0 $ 0 $ 0 $ 2,372,200 $ 2.833.822 • 461,622 $ 2,963.100 0 0 0 0 293.000 312.907 19.908 333,056 566 566 0 5,907 393,230 107,147 1286,0831 172,908 566 566 0 5,907 3,058,430 3.253.876 195,447 3.469.064 - 0 0 0 0 1.859,300 1.849,269 10.031 2,086,447 0 0 0 0 1.274.700 1.254.030 20,670 783.317 -0 0 0 0 3.134.000 3.103.299 30,701 2,869.764 566 566 0 5,907 175.5701 150.577 164.746 599,300 - 0 0 0 0 0 0 0 793 0 0 0 0 77,700 830,759 753,059 77,650 1152.1331 !152.1321 0 p .481.4071 !1.469.2111 12.196 1710.0001 -1152.1331 1152.1321 0 (1.403.7071 (638,4521 765.255 (631,5571 1151.5671 1151.5661 5,907 p ,479.2771 (487,8751 930,001 !32.2571 151,566 151.566 0 145,659 2,489,812 2,489,812 0 2,489,812 $ $ $ $ l:il :i~6 $ l Q]Q~:i $ 2QQl 2JZ $ 2ag QJI $ :i!~:iZ~ - - - - - - -91 THIS PAGE INTENTIONALLY LEFT BLANK 92 Comprehensive - • I Report :\~::; City of Renton , Washington - - - - - - - - - - - - ... ... ... - - CAPITAL PROJECT FUNDS DECEMBER 31, 2002 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. Downtown Parking Garage: Accounts for resources and expenditures related to the construction of a downtown parking facility. Limited Tax General Obligation Bonds were issued in 2001 to finance a portion of the construction costs. Community Development Impact Mitigation Fund: Accounts for monies collected from developers to offset impacts created by their developments to City facilities. Fire Impact Mitigation Fund: Accounts for monies collected from developers to offset impacts created by their developments to City facilities. Limited Tax General Obligation Bonds were issued in 2002 to finance the construction of a new fire station. Transportation Impact Mitigation Fund: Accounts for monies collected from developers to offset impacts created by their developments to City facilities. Leased City Properties Fund: Accounts for revenue and expenditures related to City property leased to outside entities. Aquatic Center Fund: Accounts for resources and expenditures related to the construction of the Henry Moses Family Aquatic Center. Municipal Facilities Construction Fund: 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 . 93 CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 {PAGE 1 OF2 I DOWNl"OWN COMMUNITY FIRE TRANSP PARKING DEV IMPACT IMPACT IMPACT GARAGE MITIGATION MITIGATION MITIGATION ASSETS: Cash and Cash Equivalents $ 5,205.490 $ 563.703 $ 4,326,354 $ 2,393,987 Investments at Fair Value 0 1,000,000 675,000 1,721,875 Receivables: Accounts 0 0 0 0 Interest on Investments 1~~6.583 3,324 78,504 90,366 Due From Other Funds 0 0 0 0 Due From Other Governmental Units 0 0 0 0 lntertund loons/ Advances -Non-Current 0 0 0 0 TOTAL ASSETS $ .iz ~1l2 gz~ $ l ~~z fJ2Z $ ~QZ2a~ $ ~ ~~ 22a LIABILITIES AND FUND EQUITY: LIABILITIES: Vouchers/Contracts Payable $ 592,250 $ 0 $ 186,394 $ 0 Retoinoge Payable 2:12,920 0 8,964 0 Due To Other Funds 0 0 0 0 Accrued Taxes Payable 0 0 0 0 lnterfund loans/ Advances Non-Current 0 0 0 0 TOTAL LIABILITIES 825, 170 0 195,358 0 FUND EQUITY: Fund Balance: Reserved for lnterfund Loons/ Advances 0 0 0 0 Unreserved -Undesignated 4,576.903 1,567,027 4,884,500 4,206,228 TOT Al FUND EQUITY 4,576,903 1,567,027 4,884,500 4,206,228 TOTAL LIABILITIES AND FUND EQUITY $ ~ ~Q2 QZ~ $ l ~~Z1!J2Z $ ~QZ2 a~ $ ~~~~a 94 _________________ , __ , - CAPIT Al PROJECT FUNDS COMBINING BALANCE SHEET -DECEMBER 31. 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE20F 2) -LEASED FAMILY MUNICIPAL COMPARATIVE TOTALS CITY ACQUATIC FACILITIES CAPITAL PROPERTIES CENTER CONSTRUCTION IMPROVEMENT 2002 2001 $ 158.600 $ 1.676.290 $ 3,925.494 $ 6.309.168 $ 24.559,086 $ 29,755,393 0 3,316.755 2.500.000 993.438 10.207.068 0 2,998 0 0 0 2.998 31.821 0 -25,767 84,083 0 478,627 161.763 0 0 0 0 0 52.332 0 0 0 1,339,057 1,339.057 1,491.081 0 0 1,260.000 0 1,260.000 920,000 $ 1tt1 ::i2a $ ::i cia a12 $ Z Zft2 fJ.ZZ $ ati~J ttttJ $ JZ ~ft a.1ft $ 32 412 399 - $ 0 $ 30,121 $ 67.796 $ 110,591 $ 987. 152 $ 1,079,407 -20.241 0 25,394 257,747 545,266 298,951 0 0 0 23,902 23.902 22.1"47 27.878 0 0 0 27,878 38,204 1,260,000 0 0 0 1.260.000 920,000 -1,308.119 30.121 93,190 392,240 2.844.198 2.358.709 -0 0 1.260.000 0 1.260.000 920.000 11, 146.521 I 4.988,691 6.416,387 8,249,423 33,742.638 29,133.681 11.146.5211 4,988,691 7.676.387 8,249,423 35,002.638 30.053.681 $ 1tt1 f1.2a $ ~QH!§J2 $ Z Zft2 ::iZZ $ a~1tt~ $ JZ ~ft a.lft $ J2~l2~ - - - - ... - - -95 CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCES YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31. 2001 (PAGE l OF 2) DOWNTOWN COMMUNITY FIRE TRANSP PARKING DEV IMPACT IMPACT IMPACT GARAGE MITIGATION MITIGATION MITIGATION REVENUES Taxes $ 0 $ 0 $ 0 $ 0 Licenses And Permits 0 0 0 0 Intergovernmental Revenues 0 0 0 0 Charges For Services 0 383,784 518,665 1,001,645 lnterfund Revenues 0 0 0 0 Contributions 0 0 0 0 Interest 622,481 31,081 133,804 192,721 Miscellaneous Revenues 0 0 0 0 TOT AL REVENUES 622,481 414,865 652.469 1,194,366 EXPENDITURES Current: General Government 0 0 0 0 Transportation 0 0 0 0 Economic Environment 0 0 0 0 Capital Outlay 5,588,238 59,550 620,829 0 Debt Service: Interest & Fiscal Charges 0 0 73.487 0 TOTAL EXPENDITURES 5,588,238 59,550 694,316 0 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (4,965.757) 355,315 (41,8471 1,194,366 OTHER FINANCING SOURCES (USES) Proceeds Of Long-Term Debt 0 0 3,879,038 0 Operating Transfers Jn 0 0 0 0 Operating Transfers (Out) 0 0 0 I 1.200.0001 Sale Of General Fixed Assets 0 0 0 0 TOTAL OTHER FINANCING SOURCES (USES) 0 0 3,879,038 p ,200.0001 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (4,965.757) 355,315 3,837, 191 (5.6341 FUND BALANCE JANUARY I 9,542,660 1,211.712 1,047,309 4,211,862 FUND BALANCE DECEMBER 31 $ ~~z~~~ $ I ~gz Q'Z $ ~~~~QQ $ ~ 'Qg ''a 96 CAPITAL PROJECT FUNDS -COMBINING STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCES YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE20F 2) -LEASED MUNICIPAL TOTALS CITY AQUATIC FACILITIES CAPITAL PROPERTIES CENTER CONSTRUCTION IMPROVEMENT 2002 2001 - $ 0 $ 0 $ 1,245,330 $ 0 $ 1,245,330 $ J,323,782 0 0 0 1,790,946 1,790,946 1,967,436 0 0 0 2,529.357 2,529,3S7 2.466.742 -0 0 2,195 72,005 1,978,294 1,481,529 0 0 55,200 0 55,200 103,800 0 0 39,788 0 39,788 74,688 2,370 89,144 193,364 45,586 1.310,551 658,732 -458,014 0 0 0 458,014 610,711 460,384 89,144 1,535,877 4,437,894 9,407,480 8.687,420 -129,112 0 0 0 129,112 128,716 0 0 0 137,330 137.330 8,330, 168 0 0 42,075 0 42,075 9,052 -796,181 100,453 3,312,622 4.629.793 15,107,666 5,200,619 0 55,200 0 0 0 128,687 203,231 980.493 100,453 3,354,697 4,767.123 15,544,870 13,871,786 - (520, 109} (11,309} (1.818,820} (329,228} (6, 137.389} (5, 184,366} -0 0 0 0 3,879,038 5.947,691 0 5,000,000 2,043,000 1,553,500 8,S96,500 6,710,209 0 0 (175,000) 114, 192) 11,389, 192) (996,594} 0 0 0 0 0 6,000 -0 5,000,000 1,868,000 1,539,308 11,086.346 11,667,306 -1520, 109) 4,988,691 49,180 1,210,080 4,948,957 6,482,940 1626,4121 0 7,627,206 7,039,343 30,053,680 23,570,741 $ ll l~-'2,ll $ ~2~tl2l $ Zt!Z~~tl $ ll 2~2 ~~ $ ~QQ,~JZ $ ~Q~~] - ... ... ... - -97 REVENUES Taxes Licenses And Permits Intergovernmental Revenues Charges For Services Contributions Interest Miscellaneous Revenues TOTAL REVENUES EXPENDITURES Current: General Government Transportation Economic Environment Culture and Recreation Capital Outlay Debt Service: Interest & Fiscal Charges TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Proceeds Of Long-Term Debt lnterfund Loan Proceeds lnterfund Loan Repayments Operating Transfers In Operating Transfers (Out} Sale Of General Fixed Assets TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE l OF 6) DOWNTOWN PARKING GARAGE BUDGET ACTUAL $ 0 0 0 0 0 0 0 0 0 0 300,(100 127.879 0 0 300.000 127,879 0 0 0 0 0 0 0 0 9.540.400 5,588,238 0 0 9,540,400 5.588.238 (9,240,4QQJ_ (5.460.359) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ VARIANCE FAVORABLE <UNFAVORABLE> 0 0 0 0 0 1172,121) 0 (172.121) 0 0 0 0 3.952.162 0 3,952, 162 3.780.041 0 0 0 0 0 0 0 EXPENDITURES AND OTHER FINANCING USES (9.240.4.QQL (5,460,359) 3.780,041 FUND BALANCE JANUARY 1 9.478.119 9,478.119 0 FUND BALANCE DECEMBER 31 $ ~~ZZl2 $ ~QJZ Z6:Q $ ~Z~Q~l 98 $ $ 2001 ACTUAL 0 0 0 0 0 66,408 0 66.408 0 0 0 0 436,549 99.431 535.980 (469.572) 5.947.691 0 0 4,000,000 0 0 9,947,691 9,478.119 0 2~za112 ----------- CAPITAL PROJECTS FUNDS -COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL YEAR ENDED DECEMBER 31. 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 -(PAGE20F 6) COMMUNITY DEVELOPMENT IMPACT MITIGATION FIRE IMPACT MITIGATION VARIANCE VARIANCE ... FAVORABLE 2001 FAVORABLE 2001 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 o o 200.000 383.7B4 183,784 362,343 200.000 518,665 31B.665 405,B49 0 0 0 o o o o o 25,000 41,699 16,699 35.881 50.000 30,974 (19,026) 66.747 -0 0 o 0 0 0 o o 225.000 425.483 200,483 39B,224 250,000 549,639 299.639 472.596 - 0 0 0 0 o o o o 0 0 0 0 0 0 o o 0 0 0 0 0 0 o o -0 0 0 0 0 68,897 (68,897) 0 550,000 59,550 490.450 4,238 4,315,000 551,932 3,763,068 1,955,189 0 0 0 o o 0 o o -550,000 59.550 490,450 4,238 4,315,000 620.829 3.694.171 1.955.189 ... 1325,000) 365,933 690.933 393.986 14.065.000) 171,190) 3,993,810 (1.482,593) ... 0 o o 0 3,895,000 3,879,038 15,962 o 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 3.895.000 3.879,038 15.962 0 - [325,000J 365,933 690,933 393.986 [170.000J 3.807.848 4.009.n2 (1.482.5931 -1, 195,575 1, 195,575 0 801.589 988.698 988.698 0 2.471.291 $ 870 575 $ I 561 508 $ 69Q 933 $ 1 195 575 $ 818 698 $ 4 796 546 $ 4009 772 $ 988 698 - ... -99 CAPITAL PROJECTS FUMDS COMBINING STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL YEAR ENDED DECEMBER 3 I, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 30F 6) TRANSPORTATION IMPACT MITIGATION REVENUES Taxes $ Licenses And Pennits lntergovemmental Revenues Charges For Services Contributions Interest Miscenaneous Revenues TOTAL REVENUES EXPENDITURES Current: General Government Transportation Economic Environment Culture and Recreation Capital Outlay Debt Service: Interest & Fiscal Charges TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Proceeds Of Long-Term Debt lnterfund Loan Proceeds lnterfund Loan Repayments Operating Transfers In Operating Transfers (Out) Sale Of General Fixed Assets TOT AL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES FUND BALANCE JANUARY I FUND BALANCE DECEMBER 31 $ I 00 BUDGET ACTUAL 0 $ 0 0 0 0 0 350.000 1.001.645 0 0 125.000 90,534 0 0 47S.OOO 1.092.179 0 0 0 0 0 0 0 0 0 0 0 0 0 0 47S,000 1.092.179 0 0 0 0 0 0 0 0 (1.587.200) (1,200.000) 0 0 11.sa:r.2001 11.200.0001 11·112.2001 1107.8211 4,J2C?,2J7 4.129.217 ~QJZQJZ $ ~ Q2] J2ti $ $ VARIANCE FAVORABLE <UNFAVORABLE> 0 0 0 651,645 0 (34.466) 0 617,179 0 0 0 0 0 0 0 617,179 0 0 0 0 387.200 0 387.200 1,004,379 0 l QQ~ ~Z2 $ $ 2001 ACTUAL 0 0 0 365.038 0 235,118 0 600.156 0 0 0 0 0 0 0 600.156 0 0 0 0 (941.509) 0 j941.5091 j341.353I 4.470.570 ~1222lZ - CAPITAL PROJECTS FUNDS -COMBINING STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE. BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 -(PAGE 40f 6} LEASED CITY PROPERTIES AQUATIC CENTER VARIANCE VARIANCE -FAVORABLE 2001 FAVORABLE 2001 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 1.415 0 0 0 0 0 0 0 0 0 0 0 0 0 2,370 2,370 9.089 0 31,594 31,594 0 -424.400 483.274 58.874 556.056 0 0 0 0 424,400 485,644 61,244 576.560 0 31,594 31.594 0 - 159.200 129.112 30.088 128,716 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 0 815.672 796,181 19,491 9.546 5.000.000 100,453 4,899,547 0 0 55.200 (55.200} 0 0 0 0 0 -974.872 980.493 15,6211 135.262 5.000.000 100,453 4.899.547 0 -1550.4721 1494.8491 55.623 441.298 15.000.0001 168.8591 4,931.141 0 -0 0 0 0 0 0 0 0 600,000 600.000 0 0 0 0 0 0 (315,200! (260.000! 55.200 (363.800} 0 0 0 0 0 0 0 0 5.000.000 5.000.000 0 0 0 0 0 0 0 0 0 0 -0 0 0 0 0 0 0 0 284.800 340,000 55,200 1363,8001 5.000.000 5,000,000 0 0 - 1265.6721 1154.8491 110,823 77,498 0 4,931,141 4,931,141 0 ... 265.671 265.671 0 188,173 0 0 0 0 $ $ 110 822 $ 110823 $ 265 671 $ $ 4931 141 $ 4931 141 $ - - 101 REVENUES Taxes Licenses And Permits Intergovernmental Revenues Charges For Services Contributions Interest Miscellaneous Revenues TOT AL REVENUES EXPENDITURES Current: General Government Transportation Economic Environment Culture and Recreation Capital Outlay Debt Service: Interest & Fiscal Charges TOT AL EXPENDITURES EXCESS {DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES {USES) Proceeds Of Long-Term Debt lnterfund Loan Proceeds lnterfund Loon Repayments Operating Transfers In Operating Transfers (Out) Sale Of General Fixed Assets TOTAL OTHER FINANCING SOURCES {USES) EXCESS {DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES FUND BALANCE JANUARY 1 FUND BALANCE DECEMBER 31 CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 {PAGE5 OF 6) MUNICIPAL FACILITlES CONSTRUCTION BUDGET $ 850.(X:X) $ 0 0 0 66,000 200,000 0 1. 116.000 0 0 90,000 0 9.350.149 0 9.440.949 18.324,949) 0 0 {300.000) 2,043,000 {175.000) 0 1,568,000 (6.756.~ 6.542.138 $ (2]~Q] JI $ 102 ACTUAL 1,297,662 $ 0 0 2.195 39.788 119,394 0 1,459.039 0 0 42,075 0 3.305.593 0 3.347.668 p.888.629) 0 315,200 1600.000) 2.043.000 (175.000) 0 1.583.200 (305.4291 6.542.938 ~ 2J:Z~2 $ VARIANCE FAVORABLE <UNFAVORABLE> 447,662 0 0 2,195 126.212) {80,606) 0 343.039 0 0 47,925 0 6,045,356 0 6,093.281 6,436,320 0 315,200 {300,000) 0 0 0 15.200 6.451.520 0 ~~~l ~~ $ $ 2001 ACTUAL 1,398,393 0 16.021 920 74,688 346,246 7.550 1.1343,818 0 0 9,052 0 2,781,733 0 2.790.785 1946,967) 0 363,800 0 1,273.200 {42.000) 6.000 1.601.000 654.033 5.888.905 ~~22~fl - CAPITAL PROJECTS FUNDS -COMBINING STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL YEAR ENDED DECEMBER 31. 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 6 OF 6) - CAPIT Al IMPROVEMENTS TOTALS VARIANCE VARIANCE FAVORABLE 2001 FAVORABLE 2001 BUDGET ACTUAL <UNFAVORABLE> ACTUAL BUDGET ACTUAL <UNFAVORABLE> ACTUAL - $ 0 $ 0 $ 0 $ 0 $ 850.000 $ 1,2.97.662 $ 447,662 $ 1,398,393 2.000.000 1.790,891 1209, 109) 1,967,436 2,000,000 1.790.891 1209. 109) 1,967,436 -2.313,800 2,689,163 375,363 2,870,684 2.313,800 2.689, 163 375,363 2,886,705 0 55,677 55,677 680,967 750.000 1,961,966 1.211,966 1,516.532 0 0 0 0 66,000 39,7B8 126,212) 74,6B8 0 0 0 0 700,000 444,444 1255,556) 759,489 -0 0 0 10,000 424.400 483.274 58,874 583,606 4,313,800 4,535,731 221,931 5,529,087 7, 104,200 8.707, 1B8 1.602,9B8 9,186.849 - 0 0 0 0 159,200 129.112 30,088 128.716 7,562,800 4,765,367 2,797.433 8,340,965 7,562.800 4,765.367 2.797,433 8,340,965 -0 0 0 0 90,000 42.075 47,925 9,052 0 0 0 0 0 68.897 (68,897) 0 0 0 0 0 29,572.021 10,401,947 19, 170,074 5, 184,255 0 0 0 0 0 0 0 55,200 155,200) 99,431 -7,562,800 4,765,367 2,797,433 8,340,965 37,384,021 15,462.598 21.921,423 13,762,419 -13.249,000) 1229,636) 3,019,364 13, 111.878) 130.279,821) {6,755,410) 23,524,411 14,575,570) -0 0 0 0 3,895,000 3,879.038 15,962 5,947.691 0 0 0 0 600,000 915,200 315,200 363.800 0 0 0 0 1615,200) 1860,000) (244,800) 1363.800) 1.940,700 1,553,500 (387,200) 1.437,009 8,983,700 8,596.500 1387,200) 6,710,209 0 114,192) (14,192) (13,085) 11.762,200) 11.389, 192) 373,008 (996,594) -0 0 0 0 0 0 0 6,000 1.940,700 1.539,308 (401,3921 1.423,924 11, 101.300 11,141.546 72,170 11,667,306 ... (1,308,300! 1,309,672 2,617,972 (1,687,954) (19,178,5211 4,386, 136 23,596,581 7,091.736 5,537,619 5,537,619 0 7,225,573 28.137,837 28, 137,837 0 21,046,101 $ 4 229 319 $ 6 847 291 $ 2617972 $ 5 531 619 $ 8959316 $ 32 §23 973 $ 23 596 581 $ 28 137 837 .. - 103 THIS PAGE INTENTIONALLY LEFT BLANK 104 Comprehensive · . I • Iii ' I Report ~~\:,, c· f R lAT hin -~~~ 1ty o \enton, vvas gto11 - - - - - ... - - - - - ... - ... ... ... - ENTERPRISE FUNDS DECEMBER 31, 2002 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 Utllltv 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. 105 ENTERPR~E FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 {PAGE 1 OF2) WATERWORKS AIRPORT SOLID WASTE UTILITY UTILITY ASSETS: Current Assets: Cash and Cash Equivalents $ 2,297.256 $ 2,328,489 $ 626.426 Investments at Fair Value 6,666,250 1.000.000 0 Receivables: Taxes Accounts 4,191,376 16.239 796,257 Special Assessments -Current 12,915 0 0 Special Assessments -Delinquent 0 0 0 Special Assessments -Deferred 51,658 0 0 Interest -Special Assessments 1.082 0 0 Interest on Investments 44,032 22.128 9,713 Notes Receivable -Current 0 0 0 Due From Other Funds 45,505 0 0 Due From Other Govemmentot Units 291,415 44,232 30,941 Inventory of Material and Supplies 316.062 0 0 Total Current Assets 13,917,551 3.411.088 1.463,337 Restricted Assets: Deposits 0 0 0 Revenue Bond Debt Service 4,26S,423 0 0 Total Restricted Assets 4,265.423 0 0 Note Receivable -Non-Current Property, Plant and Equipment: Fixed Assets (Net) 164,540,541 5.575.043 25.479 Construction In Progress 3,033,430 384,454 0 Total Property, Plant and Equipment 167,573,971 S.959,497 25.479 Deferred Charges and Other Assets 221.039 0 0 TOTAL ASSETS $; Ja:22ZZ 284 $ 2 ;lZQ!2a.'2 $ 1~a1~ LIABILITIES AND FUND EQUITY: LIABILITJES: Current Liabilities: Vouchers/Contracts Payable $ 379.627 $ 87,054 $ 194.164 Retainage Payable 117,163 14,548 0 Due To Other Funds 45,546 5,358 0 Due To Other Governmental Units 726.743 0 0 Accrued Interest Payable 237.978 0 1,098 Accrued Wages Payable 28.413 1,828 145 Accrued Employee Benefits Payable 2.549 164 13 Accrued Taxes Payable 47,821 23,705 32.413 Deferred Revenues 0 36.326 0 Capital Leases Payable • Current 0 0 0 Total Current Liabi6ties 1,585,840 168,983 227.833 LiablNties Payable from Restricted Assets: Deposits Payable 28,519 0 0 Revenue Bonds Payable · Current Portion l,635,(X)() 0 0 Total Liabi&ties Payable from Restricted Assets 1.663,519 0 0 long Term Liabilities: Revenue Bonds Payable 25.490.000 0 0 Unamortized Discounts on Revenue Bond (705.211) 0 0 Accrued Employee Leave Benefits 379.648 43,234 2.254 Deferred Revenues 183.469 capital Leases Payable 0 0 0 PubUc Works Trust Fund Loan Payable 7.495,393 0 0 Total long Term Liabi&ties 32,843.299 43.234 2.254 TOTAL LIABIUTJES 36,092.658 212,217 230.087 FUND EQUITY: Fund Balance: Contributed Capital 112.116.546 2.529.753 166.166 Retained Earnings: Reserved 9,620.966 0 S2.471 Unreserved 28.147,814 6.628,615 1,040,092 TOTAL FUND EQUITY 149.885.326 9.158.368 1.258.729 TOTAL LIABILITIES AND FUND EQUITY $= 185977984 $ 2 3ZO 585 $ 1 188a16 106 -ENTERPRISE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2002 -WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE2 0F2) COMPARATIVE TOTALS -GOLF COURSE 2002 2001 $ 548,954 $ 5,801,125 $ 6,809,090 -700,000 8,366,250 0 23,310 5.027. 182 4.667,555 -0 12.915 0 0 0 0 0 51,658 0 0 l,082 0 -16,370 92.243 50,234 0 0 21,041 0 45,505 0 0 366,588 949, 172 -65,631 381.693 358,300 1.354,265 20,146,241 12,855,392 0 0 25.439 441.358 4,706.781 4,674,028 -441,358 4,706,781 4,699,467 8,825.214 178,966,277 165,455, 959 -67,363 3,485,247 4,969,384 8,892,577 182.451,524 170.425,343 58,080 279,119 94,-464 $ JQ Z~Q ;zag $ ~QZ~QQ~ $ l/3a QZ~ QQQ - $ 3,119 $ 663,964 $ 1.185,408 -1,961 133,672 308,254 0 50,904 8.755 0 726,743 504,807 16.768 255,844 238.782 -3,108 33.494 29.741 279 3,005 2.801 10.136 114,075 129,394 0 36,326 152.246 -0 0 38,418 35,371 2.018,027 2,598,606 71.684 100,203 100,298 -235,000 1,870,000 2,030,000 306,684 1.970,203 2. 130,298 3,870,000 29,360,000 21,040,000 (424,374) (1.129,585) ( 1.238, 150) -34.483 459,619 407, 153 183,469 0 7,238 7.238 7.238 0 7.495,393 7,389,550 -3,487,347 36,376, 134 27,605,791 3,829,402 40,364,364 32.334,695 1,412,225 116,224,690 116,224,690 441.358 10, 114.795 8.624. 119 5,063,295 40,879,816 30,891.162 -6,916,878 167,219,301 155.739,971 $ JO 746 280 $ 207 583 665 $ Je.8074 666 -107 ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND EQUITY FOR THE YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 1 OF2) WATERWORKS SOLID WASTE UTflllY AIRPORT UTILITY OPERATING REVENUES: Charges for Services $ 22,123,070 $ 779,936 $ 8,664,368 Interdepartmental Services 1,679,290 0 0 Other Operating Revenue 7,362 6,476 5,674 TOTAL OPERATING REVENUE 23,809,722 786,412 8,670,042 OPERATING EXPENSES: Operations and Maintenance 13,193,177 549,824 7,336, 156 Administrative and General 2,560,881 121,981 0 Insurance 0 24,317 0 Taxes 1,741,414 0 1,092,628 Depreciation 3,763,961 157,190 25,931 TOTAL OPERATING EXPENSES 21,259,433 853,312 8,454,715 OPERATING INCOME (LOSS) 2,550,289 (66,9001 215,327 NON-OPERATING REVENUE (EXPENSE): Interest Revenue 235,938 24,450 18,444 Gain (Loss) on Sale of Assets 0 0 0 Other Non-operating Revenue 44,757 0 121,158 Interest Expense (1,146,259) 0 0 Amortization of Debt Discount and Expense (83,3991 0 0 NON-OPERA TING REVENUE NET OF EXPENSES (948,9631 24,450 139,602 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 1,601,326 (42,4501 354,929 Contributed Capitol 9.054,627 151,050 0 Operating Transfers In {Out} (10,079) 0 0 NET INCOME (LOSS) 10,645,874 108,600 354,929 RETAINED EARNINGS, JANUARY l 27,122,906 6,520,015 737,634 RETAINED EARNINGS, DECEMBER 31 37,768,780 6,628,615 1,092,563 FUND EQUITY, DECEMBER 31 $ ~z ZQ.a zaQ $ ~~2a~1~ $ ] Q22 ~~~ 108 - ENTERPRISE FUNDS ... COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND EQUITY FOR THE YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31. 2001 (PAGE 20F 2) ... TOTALS GOLF COURSE 2002 2001 ... $ 2,063,182 $ 33,630,556 $ 31.869,238 0 1.679,290 0 -166.712 186.224 1.414,961 2,229,894 35.496,070 33,284, 199 1,405,946 22.485,103 22.093,930 -0 2.682,862 2.002,546 0 24.317 18.000 9,728 2.843,770 2.826,387 247.294 4, 194,376 4.248.310 -1,662,968 32,230,428 31,189,173 566,926 3,265,642 2,095,026 -49.467 328.299 594,237 0 0 1.398 0 165,915 129,330 -(246.468) (l ,392,727) (l.354,657) 0 183,3991 177.1661 1197,0011 1981,9121 1706,8581 369,925 2.283,730 1,388, 168 0 9,205,677 7,862,312 0 (10,079) (77,650) -369,925 11,479,328 7,784,662 s. 134,726 39,515,281 38,037.753 -5,504,651 50,994,609 45,822,415 $ 5 504 651 $ 50 994 609 $ 45822415 - - ... - - -109 ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 1OF4) SOLID WASTE WATERWORKS AIRPORT UTILITY CASH FLOWS FROM OPERATING ACTIVITIES: Cash Received From Customers $ 21.702,560 $ 1,462,624 $ 8,519,712 Cash Received From Other Funds for Services 0 0 0 Cash Paid to Suppliers for Goods and Services (14,935,lBl) (853,522) (8.442,B69) Cash Paid to Other Funds for Goods and Services 0 0 0 Cash Paid to Employees (2.560.881 J (121.9Bl) 0 Cash Paid for City Utility Taxes 0 0 0 Other Operating Receipts 1,686,652 6,476 5,674 Other Non-Operating Receipts 0 0 0 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 5,893,150 493,597 B2.517 NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES 0 0 0 CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: Proceeds From Sole of Equipment 0 0 0 Acquisition and Construction of Capitol Assets 929,363 (567,281) (14,294) Capitol Contributions 0 0 0 Capital Grants 0 0 121,158 Principal Payments on Bonds (170,000) 0 Interest Payments on Bonds 0 0 0 Payments on State Long--Term Loons 0 0 0 NET CASH PROVIDED (USED) BY CAPITAL FINANCING ACTIVITIES 759,363 (567,2B1) 106,864 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds From Sole of Investments 0 0 Payments for Investments (6,666,250) (1,000,000) 0 Interest on Investments 275,694 41,438 25,591 NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES [6,390,5561 [958,5621 25,591 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 279,BlB [1,032,2491 214,972 CASH AND CASH EQUIVALENTS, JANUARY I 2.017,438 3,360,738 411,454 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 2 297 256 $ 2 328 489 $ 626 ,126 CASH AT THE END OF THE YEAR CONSISTS OF: Cash and Cash Equivalents $ 2,297,256 $ 2,328,489 $ 626,426 Cash Restricted for: Deposits 0 0 0 Revenue Bond Debt Service 4,265.423 0 0 Construction Account 0 0 0 TOTAL CASH AT THE END OF THE YEAR $, 6 ~62 6Z2 $ 2 ~2a .1a2 $ 62~ .126 110 - ENTERPRISE FUNDS -COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31. 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 20)1 (PAGE2 OF4) -TOTALS GOLF COURSE 2002 2001 - $ 2, 106.742 $ 33,791.638 $ 30,781.170 0 0 399,652 -(1.407.218) (25.638.790) (17,436.238) 0 0 (3,535.884} 0 (2.682.862) (4,050.201 J 0 0 (l,691.312) -166.712 1,865,514 1,414,961 0 0 161.088 866.236 7,335.500 6,043,236 -0 0 177.650) 0 0 24.672 (690,485) (342,697) ( 15,099,529} -0 0 7.395,079 0 121.158 53,030 0 (170.000) (1.990,954) 0 0 (1.341,732) -0 0 1821,5921 1690,4851 1391.5391 p 1.781.0261 -0 0 4,897,748 (700.000) (8,366,250) (817,434) 53.743 396.466 629.103 {646.2571 17.969.7841 4,709.417 -{470,5061 p.007,9651 p. 106,0231 1.019,460 6,809,090 12,614.580 $ :i:1a2~ $ 5Wl 12~ $ ll~i!i:iZ - $ 548,954 $ 5,801, 125 $ 6,809,090 0 -0 0 25,439 0 4,265,423 4,674,028 0 0 0 $ ~~2:i:1 $ l!J !J~~ ;2~ $ ll~:i~Z - - - - -111 ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31. 2001 (PAGE30F4) SOLID WASTE WATERWORKS AIRPORT UTILITY RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating Income (Loss} $' 2,550.289 $ 166,9001 $ 215,327 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) By Operating Activities: Depreciation and Amortization of Deferred Charge 3,763,961 157,190 25,931 Other Non-Operating Revenue 0 0 0 (Increase) Decrease in Accounts Receivable (392.795) 127,710 (154.472) (Increase) Decrease in Due From Other Funds/Governmental (27,715) 554,978 9,816 (Increase) Decrease in Inventory/Prepaid Items 0 0 0 Increase (Decrease) in Vouchers/Retainage Payable (416,885) (250,548) (14,373) Increase (Decrease) in Due to Other Funds/Governmental 263,073 1,512 0 Increase (Decrease) in Payables/Other Short Term Liabilities 16,392 (13,626) 315 Increase (Decrease) in Customer Deposits 0 0 0 Increase (Decrease) in Deferred Revenues 91.139 (23,590) 0 Increase (Decrease) in Accrued Employee Leave Benefits 45,691 6,871 1271 Total Adjustments 3,342.861 560.497 1132.8101 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 5893159 $ :493 597 $ 67517 SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES: Fixed Assets Contributed By Develope~ $ 9,054,627 $ 0 $ 0 Change in Fair Value of Investments 6,666,250 0 0 TOTAL NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES $: 1:z z~azz $ $ 112 - -ENTERPR~E FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 -(PAGE 4 OF 4) TOTALS GOLF -COURSE 2002 2001 -$ 566,926 $ 3,265,642 $ 2,095,026 247,294 4, 194,376 4.264,310 0 0 129,330 -59,930 (359,627) (619,036) (16,370) 520,709 48,522 0 0 30,763 (14,220) (696,026) 118,517 -0 264,585 6.851 22.745 25,826 28.377 0 0 (60,271) 0 67,549 (19,269) l69j 52,-466 20,116 -299,310 4,069,858 3,948,210 $ 866 236 $ 7 335 500 $ 6 043 236 -$ 0 $ 9,054,627 $ 5,969,070 0 6,666,250 51,227 $ $ J-'2 z2c azz $ ~ Q2Q ~2Z - - - ... ... - - 113 THIS PAGE INTENTIONALLY LEFT BLANK 114 0 Comprehensive · Annual Financial Report 0 City of Renton, Washington - - - - - - - - - - ... - ... ... ... - INTERNAL SERVICE FUNDS DECEMBER 31, 2002 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. 115 INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET DECEMBER 31. 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 1OF1J COMPARATIVE TOTALS EQUIPMENT RENrAL INSURANCE 2002 2001 ASSETS: Current Assets: Cash and Cash Equivalents $ 3,370,417 $ 5,730.707 $ 9,101.124 $ 7,825,525 Investments at Fair Value ~J0.000 1,996.500 2.296.500 1,991.800 Receivables 0 Accounts 10,068 1.315 11.383 3,608 Interest on Investments ·44,917 78.405 123.322 114,947 Inventory of Material and Supplies 0 0 0 105,140 Prepaid Items ll4,652 3.000 87,652 3,000 Total Current Assets 3.8I0.054 7,809.927 11,619.981 10,044,020 Property, Plant and Equipment: Fixed Assets (Net) 4,996,565 44,103 5.040.668 4.814,126 Total Property, Plant and Equipment 4,996,565 44,103 5,040.668 4,814,126 TOT AL ASSETS $ 8806 619 $ 7 854 Q3Q $ 16 6@649 $ 14&5§146 LIABILITIES AND FUND EQUITY: LIABILITIES: Current Liabinties: Vouchers/Contracts Payable $ 176,684 $ 36,862 $ 213.546 $ 88,475 Accrued Wages Payable 2,644 431 3.075 2.793 Accrued Employee Benefits Payable 237 39 276 264 Accrued Taxes Payable 0 0 0 56 Deposits Payable 0 50.547 50.547 58,316 Total Current Liabilities 179,565 87,879 267,444 149,904 Long Term Liabilities: Accrued Employee Leave Benefits ~,4,162 8,632 42,794 39,098 Claims Incurred But Not Reported 0 1,880.505 1,880.505 1.509,544 Total Long Term Liabilities 34.162 1,889.137 1,923.299 1,548,642 TOTAL LIABILITIES 213.727 1,977,016 2, 190.743 1,698,546 FUND EQUITY: Fund Balance: Contributed Capital 2,277.242 0 2,277,242 2.282.377 Retained Earnings: Unreserved 6.315.650 5,877,014 12, 192,664 10,877.223 TOTAL FUND EQUITY 8,592,892 5.877,014 14.469,906 13.159,600 TOT AL LIABILITIES AND FUND EQUITY $ ~1ac~tt12 $ z a.iz~ cao $ 1~ ~~g,g~2 $ 1~a:za1~ 116 - INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND EQUITY -FOR THE YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 1OF1) -TOTALS EQUIPMENT RENTAL INSURANCE 2002 2001 -OPERATING REVENUES: Charges for Services $ 2,993,005 $ 7,287,672 $ 10,280.677 $ 9.850.122 TOTAL OPERATING REVENUE 2,993,005 7,287,672 10,280,677 9,850.122 -OPERATING EXPENSES: Operations and Maintenance 1,383,174 121.518 1,504,692 1,386,562 Benefit Payments 0 6,453,274 6.453.274 6,050.784 Professional Services 0 448,322 448,322 402,684 Administrative and General 228,600 177,753 406,353 495.172 -Insurance 0 435,099 435,099 426,931 Depreciation 848,443 12,430 860,873 995,070 TOTAL OPERATING EXPENSES 2.460,217 7,648,396 10,108.613 9,757,'XJ3 -OPERATING INCOME (LOSS) 532.788 j360,724J 172.064 92,919 NON-OPERATING REVENUE (EXPENSE): Interest Revenue 118,254 114,438 232.692 337,773 -Gain (Loss) on Sale of Assets (9,307) 0 (9.307) (43,671) Other Non-operating Revenue (Expense) 0 346,537 346,537 82.715 NON-OPERATING REVENUE NET OF EXPENSES 108,947 460,975 569,922 376,817 -INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 641.735 100.251 741.986 469.736 Contributed Capital (5,135) 0 (5.135) 0 Operating Transfers In (Out) 0 578,590 578.590 2,100,000 NET INCOME (LOSS) 636,600 678.841 1,315.441 2.569,736 RETAINED EARNINGS, JANUARY l 5,679,050 5,198,173 10,877,223 8,307,487 -RETAINED EARNINGS, DECEMBER 31 6,315,650 5,877,014 12, 192,664 10.877,223 FUND EQUITY, DECEMBER 31 $ 9315650 $ 5877014 $ 12 192 994 $ lOBZZW - - - - ... -117 INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE I OF I) TOTALS EQUIP,..\ENT RENTAL INSURANCE 2002 2001 CASH FLOWS FROM OPERATING ACTIVITIES: Cash Received From Other funds for Goods and Services $ 2,984.702 $ 7.288.122 $ 10.272.824 $ 9.908.848 Cash Pa'1d to Suppfiers for Goods and Services (1,248.794) (7,100.453) (8.349.247) (8.060.448) Cash Paid to Other Funds for Goods and Services 0 0 0 (485.797) Cash Paid to Employees (228.600) (177.751) (406.351) (522.803) Other Non-Operating Receipts 0 0 0 83,591 NET CASH PROVIDED (USED) BY OPERATING ACTIVlTIES 1.507,308 9,918 1,517.226 923.391 CASH FLOWS FROM NONCAPIT Al FINANCING ACTIVITIES: NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES 0 0 0 2.100.000 CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: Proceeds From Sale of Equipment 0 0 0 (43.671) Acquisition and Construction of Capital Assets [l.136.1421 883.407 1252.7351 1913.5261 NET CASH PROVIDED (USED) BY CAPITAL FINANCING ACTIVlTIES 11.136.1421 883.407 1252.7351 1957.1971 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds From Sale of Investments 0 0 0 9.060.275 Payments for Investments (300,000) (4,700) (304.700) (6,064,876) Interest on Investments 143,068 172,740 315.808 464,979 NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES [156.9321 168.040 11.108 3.460,378 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 214.234 1.061.365 1.275.599 5.526.572 CASH AND CASH EQUIVALENTS, JANUARY 1 3.156, 183 4.669.342 7,825,525 2.298,953 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ JJl.Q~lZ $ i2 ZJa ZQZ $ 2 ]Q] 12~ $ za25 i225 CASH AT THE END OF THE YEAR CONSISTS OF: Cash and Cash Equivalents $ 3,370.417 $ 5.730.707 $ 9,101,124 $ 7.825.525 TOTAL CASH AT THE END OF THE YEAR $ J JZ!l ~lZ $ i2 ZJfJ ZQZ $ 2 IQ] 12~ $ z a2i2 52i5 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVlTIES: Operating Income (Loss) $ 532.788 $ 1360,7241 $ 172.064 $ 92,919 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) By Operating Activities: Depreciation 8413,443 12,430 860.873 995.070 Other Non-Operating Revenue 0 0 0 82,715 (Increase) Decrease in Accounts Receivable (B.303) 450 (7.853) 4,177 (Increase) Decrease in Due From Other Funds/Governmental 0 0 0 876 (Increase) Decrease in Inventory/Prepaid Items 0 0 0 (3.660) Increase {Decrease) in Vouchers Payable 131.865 (6.794) 125.071 (57.023) Increase (Decrease) in Payables/Other Short Term UabUities (15) 198 183 (2) Increase (Decrease) in Customer Deposits 0 (7.769) (7.769) 54.854 Increase {Decrease) in Accrued Employee Leave Benefits 2,530 1,166 3.696 5,885 Increase (Decrease) in Claims Incurred But Not Reported 0 370,961 370,961 1252,4201 Total Adjustments 974.520 370.642 1,345,162 830.472 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 1 5()7 JOO $ 2 21a $ l 5lZ226 $ 223 J21 SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES: Change in Fair Value of Investments $ 3CXl,000 $ 4.700 $ 304,700 $ 97.933 TOTAL NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES $ ~QQQ $ ~zw $ JQ~ ZQIJ $ 2Z 2l'3 118 Comprehensive · "' I . • I Report ~~).: City of Renton, Wasl1ington - - - - - - - - - - - - - - - - .... FIDUCIARY FUNDS DECEMBER 31, 2002 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. Payroll Clearing Fund: Established to account for various payroll liabilities. 119 FIDUCIARY FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 1OF1) PENSION TRUST AGENCY FUNDS COMPARATIVE TOTALS FIREMEN'S SPECIAL PAYROLL PENSION DEPOSIT CLEARING 2002 2001 ASSETS: Cash and Cash Equivalents $ 3,524,690 $ 270, 195 $ 144 $ 3,795,029 $ 1,346,207 Investments at Fair Value 4,324,771 0 0 4,324,771 6,174,008 Receivables: Interest on Investments 1,339.443 0 0 1.339.443 1.135,261 TOTAL ASSETS $ 216a2Qd $ 2ZQ 12~ $ l~ $ 2 ~~22~ $ a 6~i2 dZ6 LIABILITIES AND FUND EQUITY: LIABILITIES: Vouchers/Contracts Payable $ 0 $ 1.428 $ 0 $ 1.428 $ 0 Accrued Employee Benefits Payable 0 0 144 144 33 Deposits Payable 0 26a,767 0 26a,767 434,991 TOTAL LIABILITIES 0 270,195 144 270,339 435,024 FUND EQUITY: Fund Balance: Reserved for Employees' Pension Benefits 8,220.452 0 0 8,220,452 8,220,452 Unreserved -Undesignated 96a,452 0 0 96a,452 0 TOTAL FUND EQUITY 9,188,904 0 0 9, 188,904 8,220,452 TOTAL LIABILITIES AND FUND EQUITY $ 21~2~ $ 2ZQ 12~ $ l~~ $ 2 ill 2~ $ a ~~~Z6 120 COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES All AGENCY FUNDS -YEAR ENDED DECEMBER 31, 2002 (PAGE I OF I) BALANCE BALANCE -01/01/02 ADDITIONS DEDUCTIONS 12£31£02 SPECIAL DEPOSIT FUND ASSETS Cash and Cash Equivalents $ 434.991 $ 297.428 $ 462.224 $ 270.195 -TOTAL ASSETS $ ~:1221 $ '2Z :t'a $ :1~'':1 $ 2ZQ 12~ LIABILITIES Vouchers Payable $ 0 $ 460,005 $ 458.577 $ {l ,428) -Deposits Payable 434,991 463,652 297.428 268.767 TOT AL LIABILITIES $ ~:1221 $ 2J:12aJ $ §JJ~2 $ fli 221 PAYROLL CLEARING FUND ASSETS -Cash and Cash Equivalents $ 1331 $ 0 $ 177 $ 144 TOT Al ASSETS $ l~I $ $ $ l:1:1 LIABILITIES -Accrued Employee Benefits Payable $ 1331 $ 0 $ 177 $ 144 TOTAL LIABILITIES $ /;p) $ $ $ l.Y TOTAL -ALL AGENCY FUNDS -ASSETS Cash and Cash Equivalents $ 434.958 $ 297,428 $ 462,401 $ 270.338 TOTAL ASSETS $ ~:12~ $ '2Z :12§ $ :12, :121 $ 2zg~ LIABILITIES -Vouchers Payable $ (33) $ 460,005 $ 458.754 $ (1,284) Deposits Payable 434,991 463,652 297,428 268,767 Accrued Employee Benefits Payable 1331 0 177 144 TOT AL LIABILITIES $ :11:12~.'2 $ 2~J ~::iZ $ Z~2~2 $ 21az §2Z - - - - - - - -121 ASSETS: Cash and Cash Equivalents Investments Receivables: Interest on Investments TOTAL ASSETS FUND BALANCE: FIREMEN'S PENSION TRUST FUND STATEMENT OF PLAN NET .ASSETS AS OF DECEMBER 31. 2002 A"D 2001 (PAGE 1OF1) $ $ Reserved for Employees' Pension Benefits $ TOT Al FUND BALANCE $ 122 2002 2001 987.000 $ 911.183 6,863.000 6, 174,008 1,339,000 l.135,261 9 189 000 $ 8 220 452 9,189,000 $ 8.220.452 2 laf QQQ $ a 22Q ~~2 - FIREMEN'S PENSION TRUST FUND -STATEMENT OF CHANGES IN PLAN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001 (PAGE 1OF1) -2002 2001 ADDITIONS: Others Contributions: -Fire Insurance Premiums $ 55.730 $ 50,703 Investment Income: Interest Revenue 1,252,935 459,697 TOTAL ADDITIONS 1.308.665 510,400 -DEDUCTIONS: Benefit Payments 333,706 323,128 Administrative and General 6,507 13,Q.40 -TOT AL DEDUCTIONS 340.213 336.168 NET INCREASE (DECREASE) 968,452 174232 FUND BALANCE RESERVED FOR EMPLOYEES' PENSION BENEFITS: -FUND BALANCE JANUARY l 8,220,452 8,046 220 FUND BALANCE DECEMBER 31 $ 2 ]§§ 2Q~ $ a 2ZQ ~~2 - - - - - - ... .... ... - - 123 THIS PAGE INTENTIONALLY LEFT BLANK 124 Comprehensive · ,............,, n I in i I Report (~City of Renton , Wasrungton - - - - - - - - - - - - - - - - - GENERAL FIXED ASSETS ACCOUNT GROUP DECEMBER 31, 2002 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. 125 ASSETS: Investment in Joint Venture Fixed Assets (Net) Construction In Progress TOTAL ASSETS OTHER CREDITS: GENERAL FIXED ASSETS ACCOUNT GROUP COMPARATIVE BALANCE SHEET DECEMBER 31. 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 1OF1) 2002 $ 4,588.444 126.672,096 12,355.782 $ ]~gJQ~2 Investments in General Fixed Assets $ 143,616.322 TOTAL OTHER CREDITS $ l~JQ]QJ22 126 2001 $ 4.087,259 125,475,631 4,699,243 $ lJ~2g2 I~ $ 134.262.133 $ ]J~2g21~ ------------------------------------ - .. - - - - .. .. .. - ... - - - - - - - SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE DECEMBER 31. 2002 (PAGE 1 OF I) GENERAL FIXED ASSETS: Land Buildings Improvements Other Than Buildings Machinery and Equipment Construction Work in Progress Joint Venture TOT AL GENERAL FIXED ASSETS INVESTMENT IN GENERAL FIXED ASSETS FROM: General Obligation Bonds Federal Grants State Grants County Grants General Revenues Donations TOTAL INVESTMENT JN GENERAL FIXED ASSETS 127 $ 28,881.690 66,fJJJ0,779 22,229,421 9,641.265 11,47 4.723 4,588,-444 $ ==='l;!fo!3i!!60ll6!!<!3p""' $ 45,806,823 6,978,624 2,-414,915 5,973,470 80,016,322 2,426, 166 $ ====] f!!3!06!010!6!!!3~20!2= FUNCTION General Government Security of Persons/Property Physical Environment Transportation Economic Environment Culture and Recreation TOTAL GENERAL FIXED ASSETS FUNCTION General Government Security of Persons/Property Physical Environment Transportation Economic Environment Culture and Recreation TOT AL GENERAL FIXED ASSETS $ $ TOTAL 48,647.26S 16,881.395 3,692.243 3,626,451 1,880,394 68,888.574 l~til!IJ22 GENERAL FIXED ASSETS 01/01/02 $ 47,633. 998 15,246,346 3,692,243 3,626,451 1,871,888 62,191,207 $ 134 262 133 $ $ SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY AS OF DECEMBER 31, 2002 (PAGE 1OF1) lt..1PROVEMENTS OTHER THAN LAND BUILDINGS BUILDINGS 1,456.463 $ 41,842,240 $ 781.346 261,249 4.881,591 215.027 0 2,751.874 741.351 759.563 118.218 2.443.761 472.016 1.305,507 80,211 25,932.399 15,901.349 17,967.726 2a aai !1212 $ !i!i&XlZZ2 $ 22 222 :122 SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY YEAR ENDED DECEMBER 31 2002 (PAGE 1OF1) INCREASES $ 1,013.268 1,635,049 0 0 8.505 6,697.367 $ 2J~ la2 128 MACHINERY CONSTRUCTION AND JOINT WORK IN EQUIPMENT VENTURE PROGRESS $ 4.527,093 $ 0 $ 40,123 3,959,367 4,588,444 2,975,716 199,018 0 0 304.909 0 0 22.660 0 0 628.217 0 8,458,884 $ 2 ~I 26i5 $ :1~:1~ $ ll :1Z:1 Z2J GENERAL FIXED ASSETS DECREASES 12/31/02 $ 0 $ 48,647,266 0 16,881,395 0 3,692.243 0 3.626.451 0 1.880,393 0 68.888,574 $ $ l~!il!ia22 Comp. rehenszve · I . .. Report ~~City of Renton, Washington - - - - - - - - - - - - - - - - GENERAL LONG-TERM DEBT ACCOUNT GROUP DECEMBER 31, 2002 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. 129 GENERAL LONG TERM DEBT ACCOUNT GROUP COMPARATIVE BALANCE SHEET DECEMBER 31, 2002 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2001 (PAGE 1Of1) 2002 ASSETS: Available in Debt Service & Capital Project Funds $ 2,030,335 Amount To Be Provided Long Term Debt Retirement 36,093,823 TOTAL ASSETS $ ~l2~l~ LIABILITIES AND FUND EQUITY: LIABILITIES: General Obligation Bonds Payable $ 33,629,583 Special Assessment Debt With Government Commitment 0 Accrued Employee Leave Benefits 4,327, 135 Installment Purchase Contracts 167.440 TOTAL LIABILITIES $ ~l~l~§ 130 2001 $ 2.546.129 31.103,733 $ ~~22g2 $ 29,095,583 135,000 4.225.611 193,708 $ ~~~~~2 2 Comprehensive · ---n I Report :.\~1 City of Renton, Washington - - - - - - - - - - - - - - - - - STATISTICAL SECTION DECEMBER 31, 2002 Presentations included in the Statistical Section of the Comprehensive Annual Financial Report (CAFR) provide detailed data on the physical. economic, social, and political characteristics of the reporting government. They are intended to provide CAFR users with a broader and more complete understanding of the government and its financial affairs than is possible from the financial statements and supporting schedules included in the Financial Section. Statistical tables usually cover more than two fiscal years and often present data from outside the accounting records. Therefore, in contrast to financial section information, statistical section data are not usually susceptible to independent audit. 131 TABLE I: GENERAL GOVERNMENT REVENUES AND EXPENDITURES BY FUNCTION. INCLUDING CHANGES IN FUND BALANCES -LAST TEN FISCAL YEARS. FOR GENERAL. SPECIAL REVENUE. AND DEBT SERVICE FUNDS (PAGE I OF 2) ----------------------- T Y A. IC:. tll.Go manta.II T rk M $70 ..§:0 !l!lt .... .IUWSI IDCM ......ulll---eU:DU:..lml ~ ~·;I [51-:i} - 1484 15 1.71 \5~ 141.21 142.61 __,. - I $60 i $50 0 n $40 0 $30 -----.-------------------- $20 D 0 $10 $0 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 DESCRIPTION 1993 1994 1995 1996 REVENUES Taxes $ 31.204, 165 $ 30.785,983 $ 33. 970. 167 $ 36,226.318 Licenses and Permits 1.145.967 1.310,570 1,236,046 1.569,007 Intergovernmental Revenues 4.297,932 4,998,676 4,343.249 4,044.611 Charges for Services 1.437,069 1.543,902 4,818.352 5,344,029 Fines and Forfeits 881.016 1.107,779 998,553 958,082 Miscellaneous 2.249,836 2,835,811 3.080.883 3,513.802 TOTAL REVENUES $ 41.215,985 $ 42,582,721 $ 48.447,250 $ 51.655,849 EXPENDITURES General Government $ 5,258,009 $ !),998,922 $ 7.807.624 $ 8.420,834 Security of Persons and Property 15.654,019 17,272.774 17.187,719 18,344.175 Physical Environment 1, 163,369 999,985 1.520,374 1.759,571 Transportation 2,937,977 :l.422,909 4,947.622 4,509,833 Economic Environment 3.155.164 :l,524.258 3.606,022 3,022.503 Mental and Physical Health 8,983 10,755 7,843 5,746 Culture and Recreation 4,603,052 4,946.035 5.130.721 5.429.238 Capital Outlay 549.412 547,281 494,585 2,302.888 Debt Service 3,554,238 4.289,678 3,347.293 3,933,368 TOTAL EXPENDITURES $ 36,884.223 $ 41.012.597 $ 44.049,803 $ 47.728.156 Other Increases (Decreases) ( 1.831.265) (335,802) (2,336.448) ( 1,129 ,720) Transfer In/Out 106,593 0 (260.482) (544,504) FUND BALANCE, JANUARY I 12.024.394 14,631.484 15.845.156 17.645,773 FUND BALANCE DECEMBER 31 $ 14 631 484 $ 15865806 $ 17 645 673 $ 19 899 242 Source: City of Renton Finance Department. 132 - - - - - - - - - - - - - - - TABLE I: GENERAL GOVERNMENT REVENUES AND EXPENDITURES BY FUNCTION, INCLUDING CHANGES IN FUND BALANCES -LAST TEN FISCAL YEARS, FOR GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS (PAGE20F 2) ----------------~--------·---··----------- Ten Yew Annuq! Generg! Goyernmentql Ending Fund BQkJnce 0 $10 f D $5 0 I I a $0 1993 1994 1995 1996 1997 1998 1999 2000 2001 1997 1998 1999 2000 2001 $ 37,903,857 $ 40,061,373 $ 42,807,838 $ 46,365,818 $ 48,802,624 2, 145,849 2,086,727 1,745,899 2,630,315 2, 151, 168 4, 164,921 4, 184,545 3,600,258 3,738,843 3,323,816 5,546,295 7,699,258 5,488,634 5,821,977 5,828,449 733,561 722,054 831,327 1,008,098 978,717 3,601,057 5, 139,563 2,668,990 2,742,896 2,735,525 $ 54,095,540 $ 59,893,520 $ 57, 142,946 $ 62,307,947 $ 63,820,299 $ 8,675,215 $ 9,915,676 $ 9,972,040 $ 10,648,052 $ 11,062,898 19,249,622 20,074,074 21,336,276 22,861,304 23,596,319 1,708,461 1,730,735 1,892,549 1,769,012 1,878,916 4,896,235 4,838,713 5,130,703 5, 118,420 5,545,590 3,414,034 4,060,970 3,792,464 4,327,075 4,477,535 7,570 10,962 8,486 8,599 6,756 5,592,278 5,804,099 6, 159, 132 6,602,437 7,260,078 3,496,515 4,881,689 717,037 315,324 176,202 3,547, 127 3,413,505 4,053,582 3,686,306 3,089,491 $ 50,587 ,057 $ 54,730,423 $ 53,062,269 $ 55,336,529 $ 57,093,785 I 5, 110,847) (7,308,428) (2,428,669) (2,469,837) (7,384,761) 0 63,110 ( 6,315,060) (955,000) 0 19,899,242 18,296,878 16,005,236 11,342, 184 14,888,765 $ 18 296 878 $ 16 214.657 $11342.184 $ 14.888.765 $ 14 230 518 133 2002 2002 $ 48,732,975 2,407,240 3,326,630 6,305,504 987, 167 1,370,303 $ 63,129,819 $ 12,395,939 24,926,075 1,897, 165 5,642,823 4,652,823 11,445 7,381,335 60,978 3,103,299 $ 60,071,882 (7,670,995) 0 14,230,518 $ 9.617 460 TABLE 2: ASSESSED VALUE, PROPERTY TAX RATES, LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (PAGE 1 OF2) ' Ten Yegr Assessed Ya!uqHon Trends $6.0 0 $5.0 n ' $4.0 : : : 0 $3.0 f : : : : : : : : : D $2.0 . : : 0 $1.0 : : : : : : : 0 $0.0 1993 1994 1995 1996 1997 1998 1999 2000 DESCRIPTION 1993 1994 ASSESSED VALUE DECEMBER 31: Real Property Value $2,730,285,285 $2,756,919,925 Personal Prooertv Value 699,080,839 673.405, 117 TOTAL ASSESSED VALUE 3.429,366.124 3,430,325,042 CITY AND OVERLAPPING TAX RATES: (a) City of Renton: General Levy $3.23416 $3.48681 Citv of Renton: Special Levv 0.41577 0.36282 City of Renton Total ... 64993 ... 84963 King County 2.14039 2.21546 Port of Seattle 0.30518 0.30367 Hospital District # 1 0.16238 0.14767 Renton School District #403 3.89165 3.60091 State of Washington 3.30069 3.39960 Emeroencv Medical Services 0.23942 0.24972 TOTAL PROPERTY TAX RATES $13.68964 $13.76666 PROPERTY TAX LEVIES AND COLLECTIONS: LEVY: (b) Original $12,436, 132 $13.121,967 Adjusted 12.333,996 12.898,033 COLLECTIONS: Current Collections $11.941,091 $12,654,957 Percent of Adjusted Levy 96.813 98.123 Delinauent Collections $194,799 i404,787 TOTAL COLLECTION OF CURRENT & DELINQUENT $12,135,890 $13,059,744 PERCENT OF ADJUSTED LEVY 98.393 101.253 OUTSTANDING DELINQUENT TAXES $572.274 $410.563 PERCENT OF DELINQUENT TAXES TO ADJ LEVY 4.643 3.183 Source: King County Department of Assessments. (a) Property tax rates are Jn dollars per $1.000 of taxable property valued at I 003. (b) Restated for error in reporting for 1993 CAFR. 134 2001 2002 1995 $2,904,421,288 675,278,785 3,579,700.073 $3.55454 0.36408 ••.91862 2.25288 0.29482 0.15084 3.52218 3.41873 0.24990 $13.80797 $13,971,424 13,799,832 $13.327,749 96.583 £23.487 $13,651,236 98.923 $559.159 4.053 1996 $2,933,904,882 612, 192,280 3.546.097.162 $3.60000 0.34413 $3.94413 2.20943 0.29211 0.15698 3.71940 3.49966 0.24987 $14.07158 $13,898,818 13,583,469 $13,359 ,611 98.353 ~7,054 $13,706,665 100.913 $435,963 3.213 - - - - - - - ... - - - - - - - - - TABLE 2: ASSESSED VALUE, PROPERTY TAX RATES, LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS 1997 1998 $2. 978,575,856 $3,099, 917,868 647,025,908 725,191.466 3,625,601.764 3,825. l 09,334 $3.60000 $3.55000 0.38781 0.34608 'IC<.98781 'IC<.89608 2.13173 l.85109 0.28261 0.26466 0.15959 0.15934 3.53615 3.49222 3.52499 3.51138 0.25000 n/o $13.87288 $13.17477 $14,364.723 $14,822.739 14, 167,346 14.719,382 $13,970, 125 $14,511,118 98.613 98.593 <>15,345 $211,113 $14,285,470 $14,722,231 100.833 100.023 $317,841 $314,989 2.243 2.143 (PAGE 2 OF 2) rtqpady Iqg AllqcqHon Port of Seattle HospitclCX. Schools 50% 1999 $3.543,075.457 715,425.293 4.258,500.7 50 $3.42726 0.31981 'IC<.74707 l.77385 0.23898 0.15354 3.78290 3.35872 0.29000 $13.34506 $15,843,325 15,850,628 $15,59 5,427 98.393 $215.939 $15,811.366 99.753 $354,250 2.233 135 19% State 18% 2000 $3.830.517,200 714,803,819 4,545,321,019 $3.39877 0.28488 'IC<.68365 l.68951 0.21585 0.11830 3.65397 3.30278 0.27299 $12.93705 $16.658,569 16.633,388 $16,337.790 98.223 $238,361 $16,576,151 99.663 $389,125 2.343 2001 2002 $4.317, 151.020 $4,819.029,996 7 45,490.732 77 4,850,492 5.062,641.752 5,593,880,488 $3.27385 $3.26036 0.10078 0.09397 'IC<.37463 'IC<.35433 l.55218 l.44949 0.19029 0.18956 0.09873 0.09643 3.36669 3.11288 3.14502 2.98946 0.24624 0.25000 $1 l.97378 $1 l.44215 $17,007.993 $18.676,141 16,967,683 18,581,814 $16.677 ,882 $18,285,908 98.293 98.413 $264,579 $275,697 $16,942.461 $18,561.605 99.853 99.893 $414,348 $434,556 2.443 2.343 FISCAL YEAR 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 TABLE 3: RATIO OF NET GENERAL OBLIGATION DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA -lAST TEN FISCAL YEARS (PAGE 1OF1) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 DEBT SERVICE NET RATIO OF NET ASSESSED GROSS FUNDS BONDED BONDED DEBT TO POPULATION VALUE BONDED DEBT AVAILABLE DEBT ASSESSED VALUE 43.470 $ 3,429,366, 124 $ 22,258,603 $ 1.288,20H $ 20,970,395 0.613 43,970 $ 3.430,325,042 $ 21.160,297 $ 1.373,22<1 $ 19,787,071 0.583 44,890 $ 3,579.700,073 $ 19,065,569 $ 1.220,234 $ 17,845,335 0.503 45, 170 $ 3,546,097, 162 $ 17,382,945 $ 1.426,722 $ 15,956,223 0.453 45,920 $ 3,625,601.764 $ 30, 121,269 $ 1, 184,279 $ 28. 936, 990 0.803 46,270 $ 3,825, 109 ,334 $ 28.486,738 $ 1.527,931 $ 26,958,807 0.703 47,620 $ 4,258,500,750 $ 26,466,763 $ 2,004,373 $ 24.462,390 0.573 48,270 $ 4,545,321.019 $ 24,345,738 $ 2,096.755 $ 22.248, 983 0.493 51,140 $ 5,062,641,752 $ 29,289,290 $ 1.702,901 $ 27,586,389 0.543 53,840 $ 5,593,880,488 $ 33,797,023 $ 1.538,52,1 $ 32,258.499 0.583 Source: State of Washington Office of Program Planning and Fiscal Management. King County Department of Assessments, and City of Renton Finance Department. 136 NET BONDED DEBT PER CAPITA $ 482 $ 450 $ 398 $ 353 $ 630 $ 583 $ 514 $ 461 $ 539 $ 599 - - - - - - - - - - - - ... ... ... - - - - FISCAL YEAR 1993 $ 1994 $ 1995 $ 1996 $ 1997 $ 1998 $ 1999 $ 2000 $ 2001 $ 2002 $ -"' c --·-m 0 -c © u © ~ 0 0 -c 0 ·--u © -- 0 u 240.03 210.03 180.03 TABLE 4: SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS LAST TEN FISCAL YEARS (PAGE 1OF1) Speclql Ap«pfDftnl Ulngs god Colfecflons ~12731 • I-·-----196~ fi74.0il j1BB23'11s•.93l . ---- I 174.0\\ < ~ ··-· I \ - 150.0\\ 140.131 --~139.63(j137.83l_. ~~ ~ [1215%1 120.0\\ • • 90.03 60.03 30.03 0.0\\ 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 ASSESSMENTS COLLECTION RECEIVABLE ADDITIONAL ASSESSMENT --COLLECTION ----ASA% 1/1 ASSESSMENT BILLING PRINCIPAL INTEREST TOTAL OF BILLING 3,876,542 $ 1,654,063 $ 737.439 $ 592,131 $ 441, 136 $ 1,033,267 140.123$ 5, 110, 162 $ 326,364 $ 889,261 $ 685,629 $ 327,520 $ 1.013,149 113.933 $ 4,750,897 $ 124,294 $ 588,009 $ 908,724 $ 342, 194 $ 1,250,918 212.743 $ 4,212,282 $ 0 $ 820,459 $ 1,002, 924 $ 607,356 $ 1,610,280 196.273 $ 3,209,358 $ 0 $ 471,759 $ 605,594 $ 215.457 $ 821,051 174.043 $ 2,603.764 $ 441 $ 392,626 $ 568,553 $ 170,563 $ 739,116 188.253 $ 2,035,652 $ 76,880 $ 471.303 $ 728,920 $ 142.528 $ 871,448 184.903 $ 1,383,612 $ 0 $ 311,375 $ 352,649 $ 82,097 $ 434,746 139.623 $ 1,030,963 $ 0 $ 293,261 $ 333,056 $ 71,088 $ 404, 144 137.813 $ 697,908 $ 0 $ 292,747 $ 312,908 $ 42.689 $ 355,597 121.473$ Source: City of Renton Finance Department. 137 ASSESSMENTS RECEIVABLE 12/31 4,938,474 4,750,897 3,966,467 3,209,358 2,603,764 2,035,652 1,383,612 1,030,963 697,908 385,000 TABLE 5: COMPUTATION OF LEGAL DEBT MARGIN FOR GENERAL AND SPECIAL PURPOSE CAPACITIES AS OF DECEMBER 31, 2002, AND ALL DEBT CAPACITIES -LAST TEN FISCAL YEARS jPAGE 1OF1) -------·----~--------- Ten Ytar pabt Cgoocltv Jr&nd1 $60.,-------------------------------- M 0 n 0 Councilmanic (Non-Voted) D 0 I 1$30.61 f$3L61 1$320 I hr------------~--Ex~:~;vy 1-I------- 0 $0-l-------~------~-----------~------- 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 GENERAL CAPACITY SPECIAL PURPOSE CAPACITY PARKS AND UTILITY TOTAL DESCRIPTION COUNCILMAN IC EXCESS LEVY OPEN SPACE PURPOSES CAPACITY ASSESSED VALUE J2002J: $5.593,880.488 2.50% of Assessed Value $ N/A $ 139,847,012 $ 139,847.012 $ 139,847.012 $ 419.541,037 1.50% of Assessed Value 83.908.207 J83,908,207) N/A N/A 0 STATUTORY DEBT LIMIT $ 83,908.207 $ 55.938.805 $ 139.847,012 $ 139.847,012 $ 419,541.037 General Obligation Bonds $ 30,599,583 $ 3.0-30,000 $ 0 $ 0 $ 33.629.583 Installment Contracts (a) 167,440 0 0 0 167.440 TOTAL DEBT OUTSTANDING $ 30,767,023 $ 3,aio,ooo $ 0 $ 0 $ 33,797,003 Less Amount Available in Debt Service Funds $ 977,826 $ 560.698 $ 0 $ 0 $ 1,538.524 NET DEBT OUTSTANDING $ 29,789. 197 $ 2.469,302 $ 0 $ 0 $ 32,258,499 REMAINING DEBT CAPACITY $ 54, 119.010 $ 53.469,503 $ 139,847,012 $ 139,847.012 $ 387,282.538 Source: King County Department of Assessments. City of Renton Finance Department. (a) Statutory limit= .75% of 13 of assessed value. 138 - - - - - - - ... - - - - - ... ... - - - - TABLE 6: COMPUTATION OF DIRECT AND OVERLAPPING DEBT -DECEMBER 31, 2002 [PAGE 1OF1) ----~---· ------- Ctty of Renton Pktct gnd Overlgpplng Debt $140 M $120 $100 0 n s $80 0 f $60 D 0 $40 I I a $20 IRenton-$3231:: s $0 PERCENTAGE AMOUNT NET DEBT APPLICABLE APPLICABLE JURISDICTION OUTSTANDING TO RENTON TO RENTON NET DIRECT DEBT: City of Renton $32,258,499 100.003 $32,258,499 OVERLAPPING DEBT: King County $725,524,395 2.663 $19,298,949 Port of Seattle $229,030,000 2.663 $6,092, 198 Renton School District #403 $150,799,677 54.243 $81,793,745 Sub-Total $1. 105,354,072 9.703 $107,184,892 TOTAL DIRECT AND OVERLAPPING DEBT $1,137,612,571 12.263 $139,443,391 Source: King County Deportment of Finance and King County Deportment of Assessments. 139 TABLE 7: RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION BONDS TO TOTAL GENERAL GOVERNMENT EXPENDITURES -LAST TEN FISCAL YEARS (PAGE 1OF1) Ten Year Debt SeNlce to ExP'ndlture Rqtlo Jrend 9.003 -----------------~--·------ 16.1731 @:933) : : : : : 6.003 : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : 3.003 0.003 : : : : : : : : : : : : : : : : : : : : : : : : : : : : : 1993 1994 1995 1996 1997 I 998 1 999 2000 2001 2002 [b) TOTAL GENERAL RATIO OF DEBT FISCAL (a) [a) TOTAL GOVERNMENTAL SERVICE TO YEAR PRINCIPAL INTEREST DEBT SERVICE EXPENDITURES EXPENDITURES 1993 $ 1,276.160 $ 1.304.215 $ 2,580,375 $ 36.884.223 7.003 1994 $ 1.614.288 $ 916,353 $ 2.530.641 $ 41.012.597 6.173 1995 $ 1,720,397 $ 843.051 $ 2,563.448 $ 44.049.803 5.823 1996 $ 1,631.406 $ 770.117 $ 2.401.523 $ 47,728.156 5.033 1997 $ 1,619,878 $ 1.093.294 $ 2,713,172 $ 50.587,057 5.363 1998 $ 1,499,418 $ 1.251.809 $ 2.751,227 $ 54.730.423 5.033 1999 $ 2,019,976 $ 1.252.437 $ 3.272.413 $ 53.062.269 6.173 2000 $ 2.121.025 $ 1.160.537 $ 3,281,562 $ 55.336.529 5.933 2001 $ 1,901.447 $ 981.680 $ 2,883,127 $ 57.093,785 5.053 2002 $ 1.714,269 $ 1.242.740 $ 2,957,009 $ 60.071.882 4.923 [a) Principal and lnferesf are based on fofal GO Bond debf payments. {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 140 - - .... .... - - - - - - - ... ... ... - - - - TABLE 8: REVENUE BOND COVERAGE FOR WATER AND SEWER, AND GOLF SYSTEM BONDS LAST TEN FISCAL YEARS (PAGE 1OF1) Wafer/Sewer Reyenut Bond Debt Service Coyerqqe c 4.00 0 v 3.50 e 3.00 2.36 2.43 2.55 a 2.50 g 2.00 e 1.50 R a 1.00 . -----+-----! I 0.50 0 0.00 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 (a) OPERATING NET REVENUE AVERAGE ANNUAL COVERAGE FISCAL GROSS EXPENSES AVAILABLE FOR DEBT SERVICE (b) IS TO BE YEAR REVENUE W/0 DEPREC. DEBT SERVICE REQUIREMENTS COVERAGE AT LEAST WATER AND SEWER REVENUE BONDS: 1993 $ 16,809,047 $ 10.478, 147 $ 6,330,900 $ 2,679,581 2.36 1.3 1994 $ 18,266, 154 $ 11,500,657 $ 6,765.497 $ 3,004,180 2.25 1.3 1995 $ 20,781.235 $ 13,187,048 $ 7,594, 187 $ 3,131,174 2.43 1.3 1996 $ 22,842,549 $ 14,750,009 $ 8,092,540 $ 3,173,846 2.55 1.3 1997 $ 22,854,798 $ 14,580,175 $ 8,274,623 $ 3, 151,984 2.63 1.3 1998 $ 23, 126,374 $ 14,877,435 $ 8,248,939 $ 3, 155,670 2.61 1.3 1999 $ 23,861,159 $ 16,407,442 $ 7,453,717 $ 2,658,909 2.80 1.3 2000 $ 25,541,809 $ 15,653,774 $ 9,888,035 $ 2,650,713 3.73 1.3 2001 $ 23,508,826 $ 16,051,720 $ 7,457, 106 $ 2,638,201 2.83 1.3 2002 $ 26,212,078 $ 17,468,472 $ 8,743,606 $ 3, 121,885 2.80 1.3 GOLF COURSE REVENUE BONDS (c): 1994 $ 1,319,025 $ 561,028 $ 757,997 $ 419,334 1.81 1.25 1995 $ 1,490,505 $ 767,283 $ 723,222 $ 421,127 1.72 1.25 1996 $ 2,078,745 $ 1,076,030 $ 1,002,715 $ 431,521 2.32 1.25 1997 $ 2,724,692 $ 1,270,849 $ 1,453,843 $ 455,626 3.19 1.25 1998 $ 2.432,929 $ 1,355,669 $ 1,077,260 $ 455,742 2.36 1.25 1999 $ 2,252,217 $ 1,278.489 $ 973,728 $ 439,979 2.21 1.25 2000 $ 2,328,044 $ 1,320,681 $ 1,007,363 $ 440, 164 2.29 1.25 2001 $ 2.377,197 $ 1,480,024 $ 897, 173 $ 440,223 2.04 1.25 2002 $ 2,279,361 $ 1,415,674 $ 863,687 $ 440,585 1.96 1.25 (a} Gross revenue includes connection charges. system development charges, and latecomer fees. (b} Bond financing requirements are that the overage 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 and refunded April l. 1999. Source: City of Renton Finance Department. 141 other Finance Transportation/Utilities Manufacturing Wholesale General Retailing Construction Services Auto Dealers TABLE 9: CITY OF RENTON RETAIL SALES BY SOURCE LAST FIVE FISCAL YEARS (PAGE 1OF1) ------------------------------- Changing Sales Tax Composition (1998 VS 2002) --0.973 :::::::::::::::::::::::::::::::::::::: -6.003 -4.003 -2.003 0.003 2.003 4.003 6.003 8.003 10.003 ------------------------~ 1998 1999 2000 2001 2002 SOURCE AMOUNT 3 AMOUNT 3 AMOUNT 3 AMOUNT 3 AMOUNT 3 Auto Dealers $377.585.700 23.043 $371, 149 .408 24.663 $409.110,750 24.143 $359,922,566 21.203 $407.773,923 24.303 Services 181.179,400 11.063 155,010,916 10.30% 184,010.624 10.863 184.448,578 10.873 195,854.385 11.673 Construction 271.811,200 16.593 169,985,732 11.303 203,430.733 12.003 233,809,887 13.773 216,620,057 12.913 General Retailing 406,948,500 24.833 492,673, 912 32.743 568.751.443 33.553 598,500,227 35.263 542.873,439 32.363 Wholesale 195,404.500 11.923 186,629,695 12.403 183.977.330 10.853 170.882,622 10.073 166,964.019 9.953 Manufacturing 91.426,300 5.583 25,115,537 1.673 25,251,464 1.493 45,099,847 2.663 36,139,653 2.153 Transportation/Utilities 65,408,900 3.993 71.933,082 4.783 82.501,187 4.873 56,809,524 3.353 70,092.150 4.183 Finance 21,844,900 1.333 22,901,820 1.523 27.440.587 1.623 37.543,871 2.213 30.167,799 1.803 Other 27,034,200 1.653 9,363,845 0.623 10,546.942 0.623 10.401,230 0.613 11,339,423 0.683 TOTALS -'1 638 643 100. \l 504 763 947 100. !iii '1 695 021 060 1 .00 <1 697 418 352 J(X).r~ t.J 677H'J'4X4H lOO.rvl"ll Source: City of Renton Finance Department 142 - - - - ... - - - ... .... ... ... - - ... TABLE 10: 10 LARGESTTAXPAYERS BASED ON ASSESSED VALUATION AND PRINCIPAL EMPLOYERS jPAGE 1OF1) 2002 REAL PROPERTY ASSESSED TAXPAYER TYPE OF BUSINESS VALUATION The Boeing Company Aerospace & Computer Services 733, 174.709 PACCAR Heavy Manufacturing 86,464,606 Puget Sound Energy Electric/Gos Utility 75,240,601 Renton Properties LLC Real Estate Developer 47,040,200 US West Telephone Utility 40,761,767 Spieker Properties LP Real Estate Developer 38,522,502 National Tax Search LLC Tax Consultant/Representative 38,363,300 Rasche One Interests Office Building 24,816,400 Washington Mutual Bonk Retail -Miscellaneous 23,409,861 Avalon Bay Communities Inc Apartment Building 21,206,000 Total Assessed Valuation -Largest Taxpayers $ 1, 128,999,946 Total Assessed Valuation -All Others 4,464,880,542 10101 Assessi;::u Valuanon ~ ~.57.J,oov,4oo 2002 FULL TIME EQUIV. PRINCIPAL EMPLOYERS TYPE OF BUSINESS EMPLOYEES The Boeing Company Aerospace & Computer Services 14,481 Valley Medical Center Medical Services 1,562 Renton School District Public Education 1,318 Federal Aviation Administration Federal Government 965 PACCAR Heavy Manufacturing 782 City of Renton City Government 688 Zones International Computer Hard/Software Retail 533 Wizards of the Coast Retail -Miscellaneous 453 IKEA Retail -Miscellaneous 358 Shuttle Express, Inc. Transportation Services 319 Total Number of Employees -Principal Employers 21,459 Total Number of Employees -All Other Employers 20,588 otal Employees Wcrk1ng vvunin Renton 4L,U4/ Source: Assessed Valuation: King County Deportment of Assessments. Assessed Valuation for Largest Taxpayer: King County Deportment of Assessments, Both real and personal property assessment where applicable. Number of Employees: Estimated based upon City of Renton Business License Records and individual inquiry where applicable. 143 PERCENT OF ASSESSED VALUATION 13,113 1.543 1.353 0.843 0.733 0.69% 0,683 0.443 0.423 0.38% 20.18% 79.82% luu.uu;;t PERCENT OF EMPLOYEES 34,443 3.713 3.13% 2.303 1.863 1.643 1.273 1.083 0.853 0.763 51.043 48.963 ·~-~· M $180 $150 0 n $120 0 $90 $60 D 0 $30 a $0 1995 COMMERCIAL FISCAL NO.OF DOLLAR YEAR PERMITS VALUE 1993 N/A N/A 1994 26 $ 41.646.451 1995 29 $ 43.913.909 1996 26 $ 38.474,779 1997 28 $ 56,368.747 1998 34 $ 25,191,943 1999 34 $ 32.900.792 2000 35 $ 28.312.674 2001 9 $ 3.717,968 2002 46 $ 31.113,577 ·.· TABLE 11: CONSTRUCTION PERMITS LAST TEN FISCAL YEARS jPAGE 1OF2) Ht:rt ~s:u11!!:!&H2D fium!t ~gl~mi2D D:mut 1998 2001 NEW CONSTRUCTION Cl OTHER PERMITS l!JSINGLE FAMILY -I:! MULTI FAMILY ALL NEW BUILDING PERMITS OTHER PERMITS CONSTRUCTION MULTI FAMILY SINGLE FAMILY COM/MULTI/SINGLE PERMITS NO.OF DOLLAR NO.OF DOLLAR NO.OF DOLLAR PERMITS VALUE PERMITS VALUE PERMITS VALUE PERMITS VALUATION N/A N/A N/A N/A N/A N/A N/A N/A 21 $ 10,755.923 97 $ 13,384,973 531 $ 14,455,415 675 $ 80,242.763 16 $ 7.051.996 133 $ 17,464,456 1.100 $ 11,031.008 1.278 $ 79.461.369 27 $ 11,207,074 192 $ 27.344.159 1,159 $ 6.684.931 1,404 $ 83.710,943 73 $ 40.593,074 249 $ 37,453,977 1.639 $ 14.350.058 1.989 $ 148.765.857 78 $ 36,411,387 280 $ 37.017.381 892 $ 10.260,968 1,284 $ 108.881,679 32 $ 21.972.362 175 $ 25,902,812 601 $ 6.863,519 842 $ 87,639.485 36 $ 32.045,355 351 $ 53,657,095 699 $ 10,596,874 1.121 $ 124,611.998 15 $ 16,635.694 376 $ 57,526, 127 474 $ 5,301.519 874 $ 83.181.308 26 $ 10,004.782 475 ' 78,906,931 339 ' 5,068,547 886 $ 125,093.837 Source: Construction pennits and values • City of Renton Building Deportment. Note: For 1993, the breakout as seen above is unavailable, but total permits and valuations are shown. Other permits include plumbing, electrical. mechanical, and sign permits. Starting September 1997, Combo Building Permits are being issued for new residential construction. This combo permit combines permits for building, electrical, mechanical. and plumbing. 144 - - - - - ..... -FISCAL YEAR 1993 ..... 1994 1995 1996 1997 -1998 1999 2000 2001 -2002 ... - - - - ------------------····---·--·- M $270 $240 $210 0 n $180 $150 0 I D $90 0 $60 I $30 a $0 1993 COMMERCIAL NO.OF DOLLAR PERMITS VALUE NIA NIA 380 $ 42.43 I ,505 336 $23,760,983 314 $33.112.674 356 $ 64, 142,868 317 $ 56,323.245 277 $ 25.879.237 310 $ 77,340.658 247 $ 27.005.353 323 $ 28.886.876 1994 TABLE l l: CONSTRUCTION PERMITS LAST TEN FISCAL YEARS (PAGE20F 2) Jen Yeqr Iolq! Construcffon Parmit Yaluqtton Trend 1995 1996 1997 1998 1999 ADDffiONAL/ALTERATION CONSTRUCTION BUILDING PERMITS OTHER PERMITS MULTI FAMILY SINGLE FAMILY COM/MULTI/SINGLE NO.OF DOLLAR NO. OF DOLLAR NO.OF DOLLAR PERMITS VALUE PERMITS VALUE PERMITS VALUE NIA NIA NIA NIA NIA NIA 14 $ 449,075 96 $1.697.251 1,990 $17.729.294 12 $ 203.450 99 $1,856.162 1.618 $16.014.437 31 $ 666.046 97 $1,679.484 1,652 $I 4.336.769 11 $ 303.112 96 $1.418.804 1.891 $24.615,480 14 $3.819,252 101 $1.549.018 1.960 $23.704.320 100 $ 537.329 146 $1.889.443 1,76 l $ 15, 932.899 58 $1.027.001 137 $2.985,809 1,947 $31,477,806 47 $1,159.050 115 $1.752.068 1,812 $14.989.741 66 $2, 153.510 152 $3, 135.412 2,257 $20,232.427 145 2000 2001 2002 ALL ALTERATION TOTAL CONSTRUCTION All PERMITS PERMITS PERMITS VALUATION PERMITS VALUATION NIA NIA 3.56-4 $ 98.385,628 2.480 $ 62.307.125 3.155 $142.S49.887 2.065 $ 41.835.033 3.343 $121.296.402 2.094 $ 49.794.973 3.498 $133.505,916 2,354 $ 90.480,264 4.343 $239,246.120 2.392 $ 85.395.835 3.676 $194.277.514 2,284 $ 44.238. 909 3,126 $131.878.394 2,452 $112.831.274 3.573 $237.443,272 2,221 $ 44.906.212 3.095 $128.087.520 2.798 $ 54.408.224 3684 1179 qi">n.1:'> p 0 p u I a I i 0 n n T h 0 u $ a n d $ FISCAL YEAR 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 60.0 50.0 ~35 40.0 30.0 20.0 10.0 0.0 -·-------- TABLE 12: DEMOGRAPHIC STATISTICS LASTTEN FISCAL YEARS (PAGE l OF l) ten Ytqr PopulQtfon Jrend1 lsi:i1 t3µ -~~-r ~ ~·:J 1!5~ . --- 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 SCHOOL LABOR NUMBER NUMBER UNEMPLOYMENT POPULATION ENROLLMENT FORCE EMPLOYED UNEMPLOYED RATE 43.470 ll,988 25,590 23,780 l,810 7.13 43,970 11.984 25,490 23,940 1.550 6.13 44,890 12.173 26,220 24,720 1.500 5.73 45.170 12.333 26.860 25.410 l.450 5.43 45,920 12,277 28.190 27.150 l,040 3.73 46,270 12,532 28,990 28,010 980 3.43 47.620 12.500 29,537 28.513 l.024 3.53 48,270 12.443 29,370 28.300 l,070 3.63 51.140 12.521 28.410 26.800 l,610 5.73 53.840 12.726 28.620 26 .. 630 1.990 7.03 Source: Population -State of Washington Office of Program Planning and Fiscal Management. School Enrollment -Renton School District 403 Unemployment Rate -Employment Security Deportment, Labor Mark.et and Economic Analysis Branch, Labor Market Information Center. 146 - - ... - - - - ... - - .. .. - - - DATE OF INCORPORATION FORM OF GOVERNMENT TYPE OF GOVERNMENT LOCATION LAND AREA RANK IN SIZE -STATE Of WASHINGTON RANK IN SIZE -KING COUNTY POPULATION (Official April, 2000) 2000 KC CERT OF ASSESSED VALUATION for the 2001 Tax Roll Year CITY EMPLOYEES (Actual Full Time Equivalents/FTE) ELECTION & VOTER REGISTRATION Number of Precincts Number of Registered Voters ! 10/25/01) FIRE PROTECTION TABLE 13: MISCELLANEOUS STATISTICS DECEMBER 31, 2002 (PAGE 1OF1) WASHINGTON STATE •Seattle •RENTON September6. 1901 Mayor -Council Non-Charter. Code Qty 11 Miles South of Seattle 16.9 Square Miles 13 5 53,840 $5,593,880.488 688.2 69 24,924 Spokane• TRAFFIC SIGNALS Number of Signalized Intersections STREETS Miles of Streets and alleys UTILITY SERVICES Water: Total Customers Total Gallons of Waler Produced Number of Fire Hydrants Miles of Water Main Sanitary Sewer: T otat Customers Storm Drainage: Fire Roting (Washington Survey and Rating Bureau) 3 Number of Accounts Number of Commissioned Fire Fighting Personnel 105 Miles of Storm Sewers Number of Stations (includes Dist #25) 5 Total Fire Loss 2.608.975 LICENSE & PERMITS Number of Life Support Responses 5,963 Business Licenses All Other Responses 2,270 Amusement Devices Total Number of Responses 6,233 Special Permits {Peddler) Animal Licenses !Dog and Cat) POLICE PROTECTION Number of Commissioned Police Personnel 66 AIRPORT Number of Calls for Services 50,675 Area in acres Total Crimes Reported {Class 1, II, Ill) 6,946 Feet of Asphaltic Concrete Runway Traffic Accidents Investigated 1,675 Total Operations All Other Traffic Violations 11,448 LIBRARY PARKS & RECREATION Libraries (Main and Highlands Branch) Total Acreage \, 180 Total Registered Borrowers Number of Parks and Playgrounds 26 Total Circulation 147 10• 213.15 14,998 2,590,249,CXXJ 3,088 281.5 13,059 13.331 183.7 4,235 1'6 6 1.662 167.21 5.379 113,260 2 34,003 456,982 THIS PAGE INTENTIONALLY LEFT BLANK 148 Citv of l~enton