The URL can be used to link to this page

Home My WebLink AboutQUARTER 2 2022Page 1 of 30 OVERVIEW This quarterly financial report reflects the City’s revenue and expenditures/expenses for the fiscal year through June 30, 2022. A detailed analysis, including current to prior year and budget to actual comparison is included for each City fund. Excluded from this report are the City’s fiduciary funds as these funds are held on behalf of others and are not available for City use. Budget figures shown reflect amounts authorized in ORD 6073, which includes the Q2 budget adjustment approved July 18, 2022. GENERAL FUND The General Fund is used to account for resources that are not generally dedicated for a specific purpose. The General Fund is used to meet the basic services that the City provides including, but not limited to, police protection, parks and recreation, human services, municipal court, street maintenance and planning, economic development, and administrative functions. The table below displays the YTD revenues and expenditures for the General Fund, including comparison to prior year, comparison to YTD budget amounts, and percentage of annual budget. YTD budget amounts are generally based on the collection/disbursement patterns for the same period of the preceding two (2) years, with the following exceptions: property tax revenue budgets are based on the collection patterns over the preceding four (4) years and sales tax revenue budgets are based on the collection patterns over the preceding five (5) years. General Fund YTD Prior Year YTD YTD Budget % BUDGET REVENUES Taxes 47,030,739$ 87,329,261$ 42,791,573$ 50,349,747$ 3,319,008$ 7,558,174$ 57.66% Licenses & Permits 3,090,889 5,822,163 3,194,560 4,277,047 1,186,158 1,082,487 73.46% Intergovernmental 2,912,922 21,339,899 3,880,590 2,375,706 (537,216) (1,504,884) 11.13% Charges for Services 4,458,650 9,679,623 4,850,501 5,231,840 773,190 381,339 54.05% Fines and Penalties 2,240,858 3,829,782 1,922,195 2,397,604 156,746 475,409 62.60% Miscellaneous 720,826 2,031,146 1,015,791 1,377,526 656,700 361,735 67.82% Other Financing Sources (Transfer‐In, etc) 79,877 (844,366) (844,366) 41,978 (37,899) 886,344 N/A TOTAL REVENUES 60,534,761 129,187,508 56,810,844 66,051,448 5,516,687 9,240,604 51.13% EXPENDITURES City Attorney 1,221,531 3,179,689 1,577,579 1,408,397 (186,866) 169,182 44.29% Community and Economic Development 6,365,241 13,799,888 7,790,236 5,218,831 1,146,410 2,571,405 37.82% Council 263,831 715,534 368,322 341,909 (78,078) 26,413 47.78% Court Services 1,346,898 3,645,369 1,811,457 1,533,653 (186,755) 277,804 42.07% Equity, Housing, and Human Services 584,878 5,077,034 1,894,588 1,583,402 (998,524) 311,186 31.19% Executive Services 2,415,264 5,882,527 3,050,817 2,837,610 (422,347) 213,207 48.24% Finance 1,656,368 5,125,749 2,197,259 1,950,844 (294,476) 246,415 38.06% Human Resources 732,298 1,783,308 866,703 795,122 (62,823) 71,581 44.59% Parks and Recreation 5,989,375 17,610,860 8,026,361 6,546,269 (556,894) 1,480,092 37.17% Police 20,169,612 47,693,089 23,401,706 21,235,383 (1,065,766) 2,166,323 44.53% Public Works 6,744,575 15,888,477 7,893,444 7,455,928 (711,353) 437,516 46.93% Other Non‐Departmental 3,044,147 19,943,798 11,428,071 8,026,299 (4,982,152) 3,401,772 40.24% TOTAL EXPENDITURES 50,534,018 140,345,322 70,306,542 58,933,647 (8,399,624) 11,372,895 41.99% Change in Fund Balance 10,000,743 (11,157,814) (13,495,698) 7,117,801 (2,882,942) 20,613,499 N/A Beginning Fund Balance 54,456,582 69,102,660 69,102,660 69,102,660 14,646,078 ‐ 100.00% ENDING FUND BALANCE 64,457,325$ 57,944,846$ 55,606,962$ 76,220,461$ 11,763,136$ 20,613,499$ 131.54% Operating Reserve 13,994,674 11,226,491 11,226,491 11,226,491 Economic Development Reserve 2,500,000 2,500,000 2,500,000 2,500,000 AVAILABLE FUND BALANCE 47,962,651$ 44,218,355$ 41,880,471$ 62,493,970$ Favorable (Unfavorable) 2021 2022 Variance YTD Actual Annual Budget YTD Budget YTD Actual Summary of Sources and Uses Quarterly Financial Report 2nd Quarter 2022 Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 2 of 30 GENERAL FUND REVENUES The following tables provide a more detailed summary of each revenue category within the General Fund. Detailed explanations have been provided for variances from prior year or YTD budget in excess of $100K. All variances are shown in a favourable/(unfavourable) format. TAXES Property Tax – Property tax collections by King County are above prior year and YTD budget. The property tax levy was increased by a total of 1.75% from 2021. The 2022 property tax levy, after levy changes by the assessor’s office, totalled $23.3 M. The taxes receivable balance for the 2022 levy is $11.1M at June 30. Local Retail Sales Tax – Local retail sales tax exceeded prior year and YTD budget. The majority of the increase in local retail sale tax revenues over the prior year is coming from the services and automotive sectors. It is important to note that sales tax revenues have a two month lag between the time of the sale and the City’s receipt of the sale tax from the State. Please see the June sales tax report for information regarding sales tax figures by industry. Criminal Justice Sales Tax – The criminal justice sales tax is a 0.1% sales tax imposed by the County for criminal justice purposes. The County must share 90% of the revenues collected with all cities and towns in the county on a per capita basis. The increase in criminal justice sales tax directly relates to the increase in local retail sales tax, as described above. Admissions Tax – Admission tax remains below budgeted amounts as there remains slower growth with in person events in the city compared to pre‐pandemic figures. The budget will continue to be monitored and be adjusted as needed. Utility Tax – The amount of utility tax over budget is due to the overall budget was decreased at the mid‐biennial budget adjustment as revenues were slow to come in due to the pandemic. After the utility moratorium was lifted; we did see an increase in utility tax payments in the 4th quarter of 2021. This budget will continue to be monitored and will be adjusted during the year if needed. The breakdown of Utility Tax is as follows: 2021 2022 2022 Actual Budget Actual $ % $ % Property Tax 11,973,989 11,968,610 12,394,088 420,099 3.5% 425,478 3.6% Local Retail Sales Tax 15,313,928 13,582,994 17,963,563 2,649,635 17.3% 4,380,569 32.3% State Sales Tax Credit 141,437 ‐ 77,005 (64,432) ‐45.6%77,005 100.0% Criminal Justice Sales Tax 1,610,496 1,449,120 1,801,308 190,812 11.8% 352,188 24.3% Natural Gas Use Tax 77,534 69,117 120,306 42,772 55.2% 51,189 74.1% Admission Tax 1,232 169,133 52,013 50,781 4121.8%(117,120) ‐69.2% Utility Tax 7,783,912 7,537,212 8,979,648 1,195,736 15.4% 1,442,436 19.1% Leasehold Excise Tax 85,705 75,263 89,299 3,594 4.2% 14,036 18.6% Gambling Excise Tax 1,699,670 1,170,389 1,745,503 45,833 2.7% 575,114 49.1% B&O Tax 7,198,695 6,769,734 7,127,014 (71,681) ‐1.0%357,280 5.3% YTD Total 47,030,739$ 42,791,573$ 50,349,747$ 3,319,008$ 7.1% 7,558,174$ 17.7% Annual Total 93,151,259$ 87,329,261$ Taxes by Type Revenue 2022 vs. 2021 2022 vs. Budget Year to Date through June 2021 2022 2022 Tax by Type YTD Actual YTD Budget YTD Actual $ % $ % Electrical 2,566,707$ 2,536,701$ 3,181,544$ 614,837$ 24.0% $ 644,843 25.4% Natural Gas 960,658 756,138 1,200,512 239,854 25.0% 444,374 58.8% Cell 274,458 278,762 258,600 (15,858) ‐5.8% (20,162)‐7.2% Phone 353,359 341,299 340,445 (12,914) ‐3.7% (854)‐0.2% Cable 594,479 503,751 772,144 177,665 29.9% 268,393 53.3% Garbage 398,945 425,702 378,475 (20,470) ‐5.1% (47,227)‐11.1% City Utilities 2,635,306 2,694,859 2,847,928 212,622 8.1% 153,069 5.7% YTD Total 7,783,912$ 7,537,212$ 8,979,648$ 1,195,736$ 15.4%1,442,436$ 19.1% 2022 vs. 2021 2022 vs. Budget Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 3 of 30 Gambling Excise Tax – Gambling excise taxes can fluctuate based on economy therefore the budget is set at an average amount over the past several years. The current year revenues are above the budget due to substantial increases from the card games tax. Business and Occupation (B&O) Tax – B&O tax revenues rely heavily on the revenue of a limited number of large businesses. Payments received in the 1st quarter of each year are generally for activity in the 4th quarter of the prior year. 2021 is a bit higher due to a timing of a payment of $1.3M of revenue from one taxpayer who had a 4th quarter amount due for the first time as they had reached the B&O tax “cap” in prior years in previous quarters. The maximum tax cap was raised beginning January 2022 and may increase total B&O tax receipts for the year by $2M over 2021. LICENSES & PERMITS Franchise Fees – Franchise fees are slightly below budget, due to a large payment being misclassified. This will be adjusted in the next quarter and will be on par with budget. Business Licenses – The amount of business license revenue over budget is due to better than expected economic recovery. The business license revenue budget was adjusted down at the start of the pandemic and has remained low as it was unknown how quickly the economy would recover and how many businesses would be able to survive the COVID restrictions placed on businesses. Building Permits – Building permit revenues are up from the prior year due to a general increase in the construction industry. Building permits are collected upon permit issuance. INTERGOVERNMENTAL State Shared Revenue – The breakdown of State Shared Revenue is as follows: 2021 2022 2022 Actual Budget Actual $ % $ % Franchise Fees 803,215 823,316 707,093 (96,122) ‐12.0% (116,222) ‐14.1% Business Licenses 807,884 676,612 832,940 25,056 3.1% 156,328 23.1% Animal Licenses 36,330 49,926 32,570 (3,760) ‐10.3% (17,356) ‐34.8% Building Permits 1,419,705 1,617,798 2,678,011 1,258,306 88.6% 1,060,212 65.5% ROW/Street Excavation Permits 23,670 26,267 25,924 2,254 9.5%(343) ‐1.3% Special Event Permits 85 642 510 425 500.0%(132) ‐20.6% YTD Total 3,090,889$ 3,194,560$ 4,277,047$ 1,186,159$ 38.4% 1,082,487$ 33.9% Annual Total 5,255,808$ 5,822,163$ Year to Date through June Revenue 2022 vs. 2021 2022 vs. Budget Licenses & Permits by Type 2021 2022 2022 Actual Budget Actual $ % $ % State Shared Revenue 1,904,233 1,879,927$ 2,007,769 103,536$ 5.4% 127,842$ 6.8% Federal Grants 729,000 1,834,213 324,049 (404,951) ‐55.5% (1,510,164) ‐82.3% State Grants 12,705 56,671 13,811 1,106 8.7%(42,860) ‐75.6% Local Grants 266,984 109,779 30,077 (236,907) ‐88.7% (79,702) ‐72.6% YTD Total 2,912,922$ 3,880,590$ 2,375,706$ (537,216)$ ‐18.4% (1,504,884)$ ‐38.8% Annual Total 5,835,037$ 21,339,899$ Intergovernmental by Type Revenue 2022 vs. 2021 2022 vs. Budget Year to Date through June 2021 2022 2022 Tax by Type YTD Actual YTD Budget YTD Actual$%$% Judicial Contribution 21,529$ 8,607$ 21,552$ 23$ 0.1% 12,945$ 150.4% Crim Just ‐ Pop 16,785 11,958 17,838 1,053 6.3% 5,880 49.2% Crim Just ‐ Spec Prog 59,916 54,938 63,399 3,483 5.8% 8,461 15.4% State DUI 8,283 8,411 8,957 674 8.1% 546 6.5% Marijuana Distribution 99,682 91,398 130,431 30,749 30.9% 39,033 42.7% Liquor Profits 416,882 424,998 415,517 (1,365) ‐0.3% (9,481) ‐2.2% Liquor Excise Tax 363,146 235,881 380,994 17,848 4.9% 145,113 61.5% Fuel Tax 918,010 1,043,735 969,084 51,074 5.6%(74,651) ‐7.2% YTD Total 1,904,233$ 1,879,926$ 2,007,772$ 103,539$ 5.4%127,846$ 6.8% 2022 vs. 2021 2022 vs. Budget Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 4 of 30 Federal/State/Local Grants – Federal/State/Local grant revenues vary significantly from year‐to‐year based on what grants have been awarded and the timing of grant expenditures and related reimbursement requests. Grant revenues are budgeted at 100% of the award at the time the grant agreement is finalized, and any amounts not received are carried forward each year until either 1) the grant funds are fully received or 2) the grant agreement expires. Federal grants include ARPA funding of which a significant portion has not been recognized. CHARGES FOR SERVICES Public Safety Services – The decrease in public safety services from the prior year is primarily due to the timing of payments. 2021 included a large payment of $153K from services rendered in 2020 paid in 2021. The amount under the YTD budget is primarily due to lower than anticipated receipts for private security services, as well as reduced extra duty services to cover minimum staffing for patrol. Development Services ‐ The increase in development services from prior year is due to an increase in administrative fees ($197K) and higher inspections fees ($557K) offset by a decrease in planning fees (64K). The amount over budget is due to an increase in administrative fees (169k), inspection fees ($454K), and planning fees ($91K). Social Services – The increase over prior year and budget is primarily related to the timing of receipt of two grants receipted in 2022 for activity from 2021. Grants can vary significantly from year to year based on the timing of related reimbursement requests. Recreation/Farmer’s Market/Events – Recreation Center fees have been impacted significantly from the pandemic and overall closures of the Recreation Center. The Recreation Center is now open, and revenues are expected to increase into the summer months. FINES AND PENALTIES Photo Enforcement Program – Photo enforcement revenues have increased over budget due to increased traffic volumes and school zone cameras were turned back on as in‐person learning resumed in early March 2021. Budget will be reviewed and adjusted accordingly in the year‐end budget adjustment. 2021 2022 2022 Actual Budget Actual $ % $ % Passport Fees ‐ 34,591 4,970 4,970 100.0%(29,621) ‐85.6% Court Services 32,811 20,792 45,408 12,599 38.4% 24,617 118.4% General Government Services 337 354 184 (153) ‐45.5% (170) ‐48.1% Public Safety Services 638,775 595,490 457,097 (181,678) ‐28.4% (138,393) ‐23.2% Development Services 1,116,623 1,112,122 1,806,686 690,063 61.8% 694,564 62.5% Transportation Services 6,891 ‐ 3,413 (3,478) ‐50.5%3,413 100.0% Social Services ‐ ‐ 106,235 106,235 100.0% 106,235 100.0% Recreation/Farmer's Market/Events 85,567 476,543 271,952 186,385 217.8%(204,591) ‐42.9% Interfund Services 2,577,647 2,610,609 2,535,896 (41,751) ‐1.6% (74,713) ‐2.9% YTD Total 4,458,650$ 4,850,501$ 5,231,840$ 773,191$ 17.3% 381,340$ 7.9% Annual Total 8,988,252$ 9,679,623$ Year to Date through June Charges for Services by Type Revenue 2022 vs. 2021 2022 vs. Budget 2021 2022 2022 Actual Budget Actual $ % $ % Civil Penalties 141,510$ 162,092$ 156,442$ 14,932$ 10.6%(5,650)$ ‐3.5% Photo Enforcement Program 2,006,867 1,664,437 2,106,246 99,379 5.0% 441,808 26.5% Criminal Traffic Misdemeanor Fines 25,947 25,017 16,908 (9,040) ‐34.8% (8,109) ‐32.4% Criminal Non‐Traffic Fines 3,088 17,011 2,660 (428) ‐13.9% (14,352) ‐84.4% Criminal Costs 26,443 25,861 16,726 (9,717) ‐36.7% (9,135) ‐35.3% Non‐Court Fines, Forfeitures and Penalties 37,004 27,776 98,622 61,619 166.5% 70,846 255.1% YTD Total 2,240,858$ 1,922,195$ 2,397,604$ 156,746$ 7.0% 475,409$ 24.7% Annual Total 4,622,320$ 3,829,782$ Year to Date through June Revenue 2022 vs. 2021 2022 vs. Budget Fines and Penalties by Type Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 5 of 30 MISCELLANEOUS REVENUES Rents, Leases, and Concessions – Rents, leases, and concessions revenues increased over the prior year primarily due to rent waivers provided in 2021 in response to COVID‐19. Other – The other and miscellaneous revenue is over budget and prior year due to a one time in‐lieu fee was assessed and collected in Q2 2022 for ($300k). OTHER FINANCING SOURCES Transfers from Other Funds – The amount under budget relates to the anticipated transfer of funds from the capital projects fund for the family first center. The funds previously transferred to fund the family first construction project are now being replaced with REET 1 revenues. Prior Period Adjustment – Beginning in 2014, a recurring interfund transfer in the annual amount of $500,000 was recorded between the Waterworks Utility fund (paying fund) and the General fund (receiving fund) in error. This transfer should not have continued annually and is being reversed. GENERAL FUND EXPENDITURES The following tables summarize expenditures by category for each department within the General Fund. Personnel – There was an increase in personnel costs over the prior year due to filling positions that were held vacant in 2021 in response to COVID‐19 as well as a cost‐of‐living adjustment increase of 6% for all positions except police. Police contract negotiations are reflected in the budget but not actuals as retro payment will be paid in September. The amount of personnel costs under budget is due to the budget assuming all positions would be filled for the entire year. 2021 2022 2022 Actual Budget Actual $ % $ % Interest and Other Investment Earnings 146,272$ 99,624$ 190,536$ 44,264$ 30.3% 90,912$ 91.3% Rents, Leases, and Concessions 489,236 736,543 794,199 304,963 62.3% 57,656 7.8% Contributions/Donations from Private Sources 44,203 24,634 12,035 (32,168) ‐72.8% (12,599) ‐51.1% Other 41,115 154,990 380,756 339,641 826.1% 225,766 145.7% YTD Total 720,826$ 1,015,791$ 1,377,526$ 656,700$ 91.1% 361,735$ 35.6% Annual Total 1,752,739$ 2,031,146$ Miscellaneous by Type Year to Date through June Revenue 2022 vs. 2021 2022 vs. Budget 2021 2022 2022 Actual Budget Actual $ % $ % Transfers from Other Funds 16,679$ 2,554,187$ 14,187$ (2,492) ‐14.9% (2,540,000) ‐99.4% Prior Period Adjustment ‐ (3,437,067) ‐ ‐ N/A 3,437,067 0.0% Interfund Loan Payment Received ‐ 38,514 15,405 15,405 100.0%(23,109) ‐60.0% Insurance Recoveries 23,980 ‐ 10,386 (13,594) ‐56.7%10,386 100.0% Sale of Capital Assets 39,218 ‐ 2,000 (37,218) ‐94.9%2,000 100.0% YTD Total 79,877$ (844,366)$ 41,978$ (37,899)$ ‐47.4%886,344$ ‐105.0% Annual Total (614,116)$ (844,366)$ Year to Date through June Other Financing Sources by Type Revenue 2022 vs. 2021 2022 vs. Budget General Fund 2021 Summary of Uses Annual Budget Year to Date through June YTD Actual YTD Budget YTD Actual $%$% Personnel 29,784,467$ 38,321,549$ 32,191,002$ (2,406,535)$ ‐8.1% 6,130,547$ 16.0% Supplies 579,188 738,335 796,600 (217,412) ‐37.5%(58,265) ‐7.9% Contracted Services 9,086,726$ 14,958,093$ 9,673,760$ (587,034)$ ‐6.5% 5,284,333$ 35.3% Capital Outlay 967,786 19,165 14,258 953,528 98.5% 4,907 25.6% Debt Service ‐$ 225,309$ 225,309$ (225,309)$ 100.0%‐$ 0.0% Internal Services 8,583,326 10,262,519 10,251,145 (1,667,819) ‐19.4% 11,374 0.1% Transfers Out 1,532,525$ 5,781,573$ 5,781,573$ (4,249,048)$ ‐277.3%‐$ 0.0% Total Expenditures 50,534,018 70,306,542 58,933,647 (8,399,629) ‐16.6% 11,372,895 16.2% Annual Total 107,353,981 140,345,322 2022 2022 vs. 2021 2022 vs. Budget Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 6 of 30 Supplies – The increase over prior year is primarily relates to an increase in street maintenance supplies ($118K) such as asphalt and snow and ice control supplies. The extreme weather of ice, snow and rain experienced in the Q4 required supplies to be replenished at the beginning of the year. Contracted Services ‐ The increase in contracted services is over prior year are due to the following: (1) Increase in human services expenditures one time for 2022 $284k for CDBG coronavirus funding and $118k for human services agencies, (2) Increased expenditures $337k for HB1406 funds for South King Housing and Homeless Partners. The amount under budget is primarily due to (1) ARPA funds allocated for business grants of $600K were budgeted in support for downtown business impacted by the pandemic. This grant program is ongoing and not all the funds have yet to be disbursed. (2) $4M was budgeted for general ongoing maintenance that was post‐poned due to the pandemic. These costs have yet to be spent. (3) $496k in economic development contracted services budget that have not been spent, including the remainder for Main Street Renton and Business Outreach programs. Capital Outlay – Economic Development capital outlay is associated with the Downtown Streetscape project being funded through a CDBG grant. Prior year figures include the funding of those one time planning/construction costs. Debt Service – The general fund issued an interfund loan to the Maplewood golf course to fund the purchase of golf carts. This interfund loan was approved in 2021 however due to supply chain issues the carts were not received until 2022. Internal Services – Current quarter is increased form prior year primarily due increase in Insurance Fund charges $400k (increased insurance costs), and IT Fund charges $1.3M (Eden replacement recovery). Interfund Transactions – Increase over prior year transfer relates to transfers from general fund property tax and B&O tax which have historically occurred in Q4 of the year, we are recording these evenly each quarter this year. Transfers include $1M B&O tax to IT for ongoing project, and $3.2M in property tax to Facilities and IT for two ongoing projects. Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 7 of 30 DEBT SERVICE FUNDS Debt service funds are used to account for the accumulation of resources for the payment of principal and interest related to the City’s general obligation bond issues. YTD budgets are not prepared for debt service funds. GENERAL GOVERNMENTAL MISCELLANEOUS DEBT FUND The General Governmental Miscellaneous Debt Fund is the only debt service fund maintained by the City. Interfund Transactions – Decrease from prior year due to decreased need for transfers from general fund as debt service costs are decreasing, and sufficient fund balance exists. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 51,092$ 44,610$ 44,705$ (6,387)$ 95$ 100.21% Charges for services 63,648 ‐ ‐ (63,648) ‐ N/A Investment Earnings 11,472 ‐ 11,440 (32) 11,440 N/A TOTAL REVENUES 126,212 44,610 56,145 (70,067) 11,535 125.86% EXPENDITURES: Principal 188,804 3,069,547 195,873 (7,069) 2,873,674 6.38% Interest 735,263 1,272,373 635,337 99,926 637,036 49.93% TOTAL EXPENDITURES 924,067 4,341,920 831,210 92,857 3,510,710 19.14% Transfers In 1,490,188 4,489,359 611,550 (878,638) (3,877,809) 13.62% NET TRANSFERS 1,490,188 4,489,359 611,550 (878,638) (3,877,809) 13.62% CHANGE IN FUND BALANCE 692,333 192,049 (163,515) (855,848) (355,564) ‐85.14% BEGINNING FUND BALANCE, Jan 1 5,010,629 5,218,125 5,218,125 207,496 ‐ 100.00% ENDING FUND BALANCE, Jun 30 5,702,962$ 5,410,174$ 5,054,610$ (648,352)$ (355,564)$ 93.43% Debt Service Reserve 2,717,575 2,717,575 2,717,575 AVAILABLE FUND BALANCE 2,985,387$ 2,692,599$ 2,337,035$ VARIANCE FAVORABLE (UNFAVORABLE) GENERAL GOVERNMENTAL MISCELLANEOUS DEBT Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 8 of 30 SPECIAL REVENUE FUNDS Special revenue funds are used to account for revenues that are to be used for a specific purpose as required by law or legislative action. YTD budgets are not prepared for special revenue funds. Hotel/Motel Fund The Hotel/Motel Fund accounts for monies collected through an increase of 1% in hotel/motel taxes for the purpose of increasing tourism in the City or Renton, as authorized under RCW 67.28.180. The Lodging Tax Advisory Committee solicits applications for awards and brings their recommendations to Council for approval at least once per year. Awards for events are paid to applicants at the conclusion of the event once certain reporting requirements have been met. Cable Communications Fund The Cable Communications Fund accounts for funding for promotion and development of cable communications as established by City ordinance. The main use of the fund is to support the broadcasting of City Council meetings on Channel 21. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 95,726$ 200,000$ 195,700$ 99,974$ (4,300)$ 97.85% Contributions 20,000 20,000 10,000 (10,000) (10,000) 50.00% Investment Earnings 1,858 ‐ 1,691 (167) 1,691 N/A TOTAL REVENUES 117,584 220,000 207,391 89,807 (12,609) 94.27% EXPENDITURES: Contracted Services 122,415 488,207 127,729 (5,314) 360,478 26.16% TOTAL EXPENDITURES 122,415 488,207 127,729 (5,314) 360,478 26.16% Transfers Out ‐ 40,000 ‐ ‐ ‐ 0.00% NET TRANSFERS ‐ (40,000) ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE (4,831) (308,207) 79,662 84,493 387,869 ‐25.85% BEGINNING FUND BALANCE, Jan 1 893,604 728,421 728,421 (165,183) ‐ 81.51% ENDING FUND BALANCE, Jun 30 888,773$ 420,214$ 808,083$ (80,690)$ 387,869$ 90.92% VARIANCE FAVORABLE (UNFAVORABLE) HOTEL/MOTEL 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 37,321$ 57,674$ 32,672$ (4,649)$ (25,002)$ 56.65% Investment Earnings 1,419 ‐ 1,536 117 1,536 N/A TOTAL REVENUES 38,740 57,674 34,208 (4,532) (23,466) 59.31% EXPENDITURES: Supplies ‐ 335,837 119,436 119,436 216,401 35.56% Contracted Services 17,780 51,372 35,004 17,224 16,368 68.14% Capital Outlay ‐ 40,000 ‐ ‐ 40,000 0.00% TOTAL EXPENDITURES 17,780 427,209 154,440 136,660 272,769 36.15% Transfers In ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 20,960 (369,535) (120,232) (141,192) 249,303 N/A BEGINNING FUND BALANCE, Jan 1 677,710 731,245 731,245 53,535 ‐ 100.00% ENDING FUND BALANCE, Jun 30 698,670$ 361,710$ 611,013$ (87,657)$ 249,303$ 168.92% CABLE COMMUNICATIONS VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 9 of 30 Housing & Supportive Services In accordance with HB 1590, the City Council passed ORD 5983 authorizing an additional 0.1% sales and use tax, effective January 1, 2021. The additional sales tax was not authorized at the time the 2021‐2022 budget was prepared. Anticipated revenues are expected to be included in the mid‐biennial budget adjustment. The additional sales and use tax is restricted for housing and related services, in accordance with RCW 82.14.530. Springbrook Wetlands Fund The Springbrook Wetlands Fund was established in 2007 for the purpose of providing accounting for the Springbrook Creek Wetland and Habitat Mitigation Bank project. The fund will receive revenue by selling Wetlands credits which will be used to fund the ongoing maintenance of the wetland in perpetuity. Sale of credits – Increase in the sale of credits is due to a sale of springbrook wetland mitigation credits to Renton School District ($230k). 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes ‐$ 3,490,000$ 2,086,418$ 2,086,418$ (1,403,582)$ 59.78% Investment Earnings ‐ ‐ 7,641 7,641 7,641 N/A TOTAL REVENUES ‐ 3,490,000 2,094,059 2,094,059 (1,395,941) 60.00% EXPENDITURES: Contracted Services ‐ 1,710,000 1,500,000 1,500,000 210,000 87.72% TOTAL EXPENDITURES ‐ 1,710,000 1,500,000 1,500,000 210,000 87.72% NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE ‐ 1,780,000 594,059 594,059 (1,185,941) 33.37% BEGINNING FUND BALANCE, Jan 1 ‐ 3,171,729 3,171,729 3,171,729 ‐ 100.00% ENDING FUND BALANCE, Jun 30 ‐$ 4,951,729$ 3,765,788$ 3,765,788$ (1,185,941)$ 76.05% HOUSING & SUPPORTIVE SERVICES VARIANCE FAVORABLE (UNFAVORABLE) 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charge for services 24,200$ ‐$ ‐$ (24,200)$ ‐$ N/A Investment Earnings 745$ ‐$ 633$ (112)$ 633$ N/A Sale of credits ‐ ‐ 230,300 230,300 230,300 N/A TOTAL REVENUES 24,945 ‐ 230,933 205,988 230,933 N/A EXPENDITURES: Personnel ‐ 11,000 2,853 2,853 (8,147) 25.93% Contracted Services ‐ ‐ 389 389 389 N/A TOTAL EXPENDITURES ‐ 11,000 3,241 3,241 7,759 29.46% NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 24,945 (11,000) 227,692 202,747 238,692 N/A BEGINNING FUND BALANCE, Jan 1 348,826 234,325 234,325 (114,501) ‐ 100.00% ENDING FUND BALANCE, Jun 30 373,771$ 223,325$ 462,017$ 88,246$ 238,692$ 206.88% SPRINGBROOK WETLANDS VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 10 of 30 Police Seizure Fund The Police Seizure Fund was established in the 2nd quarter of 2020 for the purpose of providing transparency in the accounting for assets seized by Police in accordance with RCW 9A.83.030 and 69.50.505, previously accounted for within the General Fund. These seizure funds are restricted to use exclusively for the expansion and improvement of controlled substances related law enforcement activity. The total fund balance remaining at the end of the year is budgeted in full the following year. Police CSAM Seizure Fund The Police CSAM Seizure Fund was established in the 2nd quarter of 2020 for the purpose of providing transparency in the accounting for assets seized by Police in accordance with RCW 9A.88.150, previously accounted for within the General Fund. These seizure funds are restricted to the exclusive use of enforcing the provisions of chapter 9A.88 RCW, Indecent Exposure‐ Prostitution, or chapter 9.68A RCW, Sexual Exploitation of Children. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Contributions 8,118$ ‐$ 31,007$ 22,888$ 31,007$ N/A Investment Earnings 1,681 ‐ 1,085 (596) 1,085 N/A TOTAL REVENUES 9,799 ‐ 32,092 22,292 32,092 N/A EXPENDITURES: Supplies 21,771 330,969 41,304 19,533 289,665 12.48% Contracted Services 24,982 ‐ 91,046 66,064 (91,046) N/A Capital Outlay 84,404 ‐ 150,104 65,700 (150,104) N/A TOTAL EXPENDITURES 131,157 330,969 282,454 151,297 48,515 85.34% Transfers In ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ (300,556) ‐ ‐ 300,556 N/A CHANGE IN FUND BALANCE (121,358) (631,525) (250,362) (129,005) 381,163 N/A BEGINNING FUND BALANCE, Jan 1 872,449 631,525 631,525 (240,924) ‐ 100.00% ENDING FUND BALANCE, Jun 30 751,091$ ‐$ 381,163$ (369,928)$ 381,163$ N/A POLICE SEIZURE VARIANCE FAVORABLE (UNFAVORABLE) 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Fines and penalties 18,949$ ‐$ 2,295$ (16,654)$ 2,295$ N/A Investment Earnings 328 ‐ 380 52 380 N/A TOTAL REVENUES 19,277 ‐ 2,675 (16,602) 2,675 N/A EXPENDITURES: Contracted Services ‐ 174,826 ‐ ‐ (174,826) 0.00% TOTAL EXPENDITURES ‐ 174,826 18,311 18,311 156,515 10.47% Transfers In ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 19,277 (174,826) (15,636) (34,913) 159,190 N/A BEGINNING FUND BALANCE, Jan 1 150,637 174,826 174,826 24,189 ‐ 100.00% ENDING FUND BALANCE, Jun 30 169,914$ ‐$ 159,190$ (10,724)$ 159,190$ N/A POLICE CSAM SEIZURE VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 11 of 30 Fire Impact Mitigation Fund This fund accounts for fire impact fees collected from developers as authorized under RCW 82.02.050‐.110. These fees are used to offset the cost of system improvements necessary to serve the new development. Impact fees are held in this fund and subsequently transferred to the debt service fund to support the debt service on fire station 13. Once the debt on the fire station is repaid, the remaining collections will be disbursed to the Renton Regional Fire Authority for use on qualifying capital projects. Charges for services ‐ The increase in charges for services is primarily due to increased impact fees which correlates directly with other increases in construction and development. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 169,035$ 99,000$ 1,138,401$ 969,366$ 1,039,401$ 1149.90% Investment Earnings 4,547 ‐ 4,601 54 4,601 N/A TOTAL REVENUES 173,582 99,000 1,143,002 969,420 1,044,002 1154.55% EXPENDITURES: TOTAL EXPENDITURES ‐ ‐ ‐ ‐ ‐ N/A Transfers Out ‐ 500,634 ‐ ‐ 500,634 0.00% NET TRANSFERS ‐ (500,634) ‐ ‐ 500,634 0.00% CHANGE IN FUND BALANCE 173,582 (401,634) 1,143,002 969,420 1,544,636 ‐284.59% BEGINNING FUND BALANCE, Jan 1 2,191,452 1,960,733 1,960,733 (230,719) ‐ 100.00% ENDING FUND BALANCE, Jun 30 2,365,034$ 1,559,099$ 3,103,735$ 738,701$ 1,544,636$ 199.07% FIRE IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 12 of 30 CAPITAL PROJECT FUNDS Capital project funds are used to account for the acquisition and construction of major capital facilities and equipment. YTD budgets are not prepared for capital project funds. Project budgets are adopted when funding is secured, and balances are carried forward each year until they are either 1) fully spent or 2) reallocated to another project through the budget adjustment process. Community Services Impact Mitigation Fund This fund accounts for park impact fees collected from developers as authorized under RCW 82.02.050‐.110. These fees are used to help offset the cost of system improvements necessary to service the new development. Impact fees are held in this fund and subsequently transferred to the Municipal Facilities CIP Fund when qualifying capital projects are budgeted. Charges for services – The increase in charges for services is primarily due to increased impact fees which correlates directly with other increases in construction and development. Transportation Impact Mitigation Fund This fund accounts for transportation impact fees collected from developers as authorized under RCW 82.02.050‐.110. These fees are used to offset the cost of system improvements necessary to serve the new development. Impact fees are held in this fund and subsequently transferred to the Capital Improvement Fund when qualifying projects are budgeted. Charges for services – The increase in charges for services is primarily due to increased impact fees which correlates directly with other increases in construction and development. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 164,590$ 86,500$ 1,380,786$ 1,216,196$ 1,294,286$ 1596.28% Investment Earnings 3,939 ‐ 7,637 3,698 7,637 N/A TOTAL REVENUES 168,529 86,500 1,388,423 1,219,893 1,301,923 1605.11% EXPENDITURES: TOTAL EXPENDITURES ‐ ‐ ‐ ‐ ‐ N/A Transfers In ‐ ‐ ‐ ‐ ‐ N/A Transfers Out ‐ 3,380,595 ‐ ‐ 3,380,595 0.00% NET TRANSFERS ‐ (3,380,595) ‐ ‐ 3,380,595 0.00% CHANGE IN FUND BALANCE 168,529 (3,294,095) 1,388,423 1,219,894 4,682,518 ‐42.15% BEGINNING FUND BALANCE, Jan 1 1,713,833 3,433,393 3,433,393 1,719,560 ‐ 100.00% ENDING FUND BALANCE, Jun 30 1,882,362$ 139,298$ 4,821,816$ 2,939,454$ 4,682,518$ 3461.51% COMMUNITY SERVICES IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 1,291,265$ 200,000$ 6,971,036$ 5,679,771$ 6,771,036$ 3485.52% Investment Earnings 7,245 ‐ 15,962 8,717 15,962 N/A TOTAL REVENUES 1,298,510 200,000 6,986,998 5,688,488 6,786,998 3493.50% EXPENDITURES: TOTAL EXPENDITURES ‐ ‐ ‐ ‐ ‐ N/A Transfers Out ‐ 3,200,000 ‐ ‐ 3,200,000 0.00% NET TRANSFERS ‐ (3,200,000) ‐ ‐ 3,200,000 0.00% CHANGE IN FUND BALANCE 1,298,510 (3,000,000) 6,986,998 5,688,488 9,986,998 N/A BEGINNING FUND BALANCE, Jan 1 3,154,954 5,159,035 5,159,035 2,004,081 ‐ 100.00% ENDING FUND BALANCE, Jun 30 4,453,464$ 2,159,035$ 12,146,033$ 7,692,569$ 9,986,998$ 562.57% TRANSPORTATION IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 13 of 30 REET 1 Fund This fund was established in the 2nd quarter of 2020 to account for the first quarter percent of real estate excise tax (REET) levied in accordance with RCW 82.46.010. The tax may be used for eligible capital projects, as defined in RCW.82.46.010(6), that are included in the capital facilities element of the City’s comprehensive plan. REET 1 tax revenues are held in this fund and subsequently transferred to the appropriate capital project fund when qualifying projects are budgeted. REET 2 Fund This fund was established in the 2nd quarter of 2020 to account for the second quarter percent of real estate excise tax (REET) levied in accordance with RCW 82.46.035. The tax may be used for eligible capital projects, as defined in RCW.82.46.035(5), that are included in the capital facilities element of the City’s comprehensive plan. REET 2 tax revenues are held in this fund and subsequently transferred to the appropriate capital project fund when qualifying projects are budgeted. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 2,111,656$ 2,300,000$ 2,023,313$ (88,343)$ (276,687)$ 87.97% Investment Earnings 5,943 ‐ 11,463 5,520 11,463 N/A TOTAL REVENUES 2,117,599 2,300,000 2,034,776 (82,823) (265,224) 88.47% EXPENDITURES: TOTAL EXPENDITURES ‐ ‐ ‐ ‐ ‐ N/A Transfers In ‐ ‐ ‐ ‐ ‐ N/A Transfers Out ‐ 5,579,996 ‐ ‐ 5,579,996 0.00% NET TRANSFERS ‐ (5,579,996) ‐ ‐ 5,579,996 0.00% CHANGE IN FUND BALANCE 2,117,599 (3,279,996) 2,034,776 (82,823) 5,314,772 ‐62.04% BEGINNING FUND BALANCE, Jan 1 2,042,269 4,508,117 4,508,117 2,465,848 ‐ 100.00% ENDING FUND BALANCE, Jun 30 4,159,868$ 1,228,121$ 6,542,893$ 2,383,025$ 5,314,772$ 532.76% REET 1 VARIANCE FAVORABLE (UNFAVORABLE) 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 2,111,656$ 2,300,000$ 2,023,312$ (88,344)$ (276,688)$ 87.97% Investment Earnings 8,405 ‐ 20,666 12,261 20,666 N/A TOTAL REVENUES 2,120,061 2,300,000 2,043,978 (76,083) (256,022) 88.87% EXPENDITURES: TOTAL EXPENDITURES ‐ ‐ ‐ ‐ ‐ N/A Transfers In ‐ ‐ ‐ ‐ ‐ N/A Transfers Out ‐ 6,921,118 ‐ ‐ 6,921,118 0.00% NET TRANSFERS ‐ (6,921,118) ‐ ‐ 6,921,118 0.00% CHANGE IN FUND BALANCE 2,120,061 (4,621,118) 2,043,978 (76,083) 6,665,096 ‐44.23% BEGINNING FUND BALANCE, Jan 1 3,411,866 8,773,145 8,773,145 5,361,279 ‐ 100.00% ENDING FUND BALANCE, Jun 30 5,531,927$ 4,152,027$ 10,817,123$ 5,285,196$ 6,665,096$ 260.53% REET 2 VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 14 of 30 Municipal Facilities CIP Fund This fund accounts for general governmental facility construction, improvement, and renovation; property acquisitions for parks and City space needs; parks development and equipment; and major maintenance of existing general governmental assets. Transportation capital improvements are accounted for in a separate fund. Grants – Federal/State/Local grant revenues vary significantly from year‐to‐year based on what grants have been awarded and the timing of grant expenditures and related reimbursement requests. Grant revenues are budgeted at 100% of the award at the time the grant agreement is finalized, and any amounts not received are carried forward each year until either 1) the grant funds are fully received or 2) the grant agreement expires. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 815,534$ 2,648,565$ 181,009$ (634,525)$ (2,467,556)$ 6.83% Charges for services 157,595 ‐ 4,700 (152,895) 4,700 N/A Sale of general fixed assets 80,000 ‐ ‐ (80,000) ‐ N/A Investment Earnings 45,185 162,840 37,276 (7,909) (125,564) 22.89% TOTAL REVENUES 1,098,314 2,886,405 222,985 (875,329) (2,663,420) 7.73% EXPENDITURES: Personnel 276,812 427,069 211,799 (65,013) 215,270 49.59% Contracted Services 35,864 990,922 84,262 48,398 906,660 8.50% Capital Outlay 1,229,184 32,122,362 1,554,876 325,692 30,567,486 4.84% TOTAL EXPENDITURES 1,541,860 33,540,353 1,850,937 309,077 31,689,416 5.52% Transfers In ‐ 13,831,683 3,000,000 3,000,000 (10,831,683) 21.69% Transfers Out ‐ ‐ 44,301 44,301 (44,301) N/A NET TRANSFERS ‐ 13,831,683 2,955,699 2,955,699 (10,787,382) 21.37% CHANGE IN FUND BALANCE (443,546) (16,822,265) 1,327,747 1,771,293 18,150,012 ‐7.89% BEGINNING FUND BALANCE, Jan 1 20,298,663 16,824,783 16,824,783 (3,473,880) ‐ 100.00% ENDING FUND BALANCE, Jun 30 19,855,117$ 2,518$ 18,152,530$ (1,702,587)$ 18,150,012$ 720910.64% MUNICIPAL FACILITIES CIP VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 15 of 30 Capital Improvement Fund This fund accounts for the City’s Transportation capital projects. Grants – Federal/State/Local grant revenues vary significantly from year‐to‐year based on what grants have been awarded and the timing of grant expenditures and related reimbursement requests. Grant revenues are budgeted at 100% of the award at the time the grant agreement is finalized, and any amounts not received are carried forward each year until either 1) the grant funds are fully received or 2) the grant agreement expires. Capital Outlay – Increase in capital outlay expenditures is due to large projects ongoing reaching significant completion dates and additional capital expenditures being spent. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 4,903,791$ 36,956,621$ 5,885,413$ 981,622$ (31,071,208)$ 15.93% Charges for services ‐ ‐ ‐ ‐ ‐ N/A Fines and penalties 22,801 ‐ (86) (22,887) (86) N/A Investment Earnings 34,742 ‐ 21,050 (13,692) 21,050 N/A TOTAL REVENUES 4,961,334 36,956,621 5,906,377 945,043 (31,050,244) 15.98% EXPENDITURES: Personnel 31,407 81,000 63,260 31,853 17,740 78.10% Supplies 1,670 65,129 44,451 42,781 20,678 68.25% Contracted Services 31,952 536,978 35,941 3,989 501,037 6.69% Capital Outlay 6,008,584 50,011,857 7,848,262 1,839,678 42,163,595 15.69% TOTAL EXPENDITURES 6,073,613 50,694,964 7,977,914 1,904,301 42,689,050 15.74% Transfers In ‐ 5,450,450 ‐ ‐ (5,450,450) 0.00% NET TRANSFERS ‐ 5,389,050 ‐ ‐ (5,450,450) 0.00% CHANGE IN FUND BALANCE (1,112,279) (8,349,293) (2,071,537) (959,258) 6,277,756 N/A BEGINNING FUND BALANCE, Jan 1 16,792,413 10,868,853 10,868,853 (5,923,560) ‐ 100.00% ENDING FUND BALANCE, Jun 30 15,680,134$ 2,519,560$ 8,797,316$ (6,882,818)$ 6,277,756$ 349.16% CAPITAL IMPROVEMENT VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 16 of 30 Family First Center Fund This fund is used to account for the construction of the new Family First Center. Funds accumulated for the construction of the Family First Center are maintained in the fund balance until such time that Council authorizes their use through the approval of contracts and additional project budget is established through the budget adjustment process. Grants – Federal/State/Local grant revenues vary significantly from year‐to‐year based on what grants have been awarded and the timing of grant expenditures and related reimbursement requests. Grant revenues are budgeted at 100% of the award at the time the grant agreement is finalized, and any amounts not received are carried forward each year until either 1) the grant funds are fully received or 2) the grant agreement expires. Capital Outlay – Increase in capital outlay expenditures is due to the project construction going into further completion causing additional capital expenditures being spent. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental ‐$ 4,509,000$ 1,455,000$ 1,455,000$ (3,054,000)$ 32.27% Contributions ‐ 4,950,000 4,692,222 4,692,222 (257,778) 94.79% Investment Earnings 17,234 ‐ 19,004 1,770 19,004 N/A TOTAL REVENUES 17,234 9,459,000 6,166,226 6,148,992 (3,292,774) 65.19% EXPENDITURES: Contracted Services 2,904 ‐ 33,148 30,244 (33,148) N/A Capital Outlay 49,758 14,778,258 4,462,265 4,412,507 10,315,993 30.19% TOTAL EXPENDITURES 52,662 14,778,258 4,495,413 4,442,751 10,282,845 30.42% Transfers In ‐ 3,000,000 44,301 44,301 (2,955,699) 1.48% Transfers Out ‐ 2,500,000 ‐ ‐ 2,500,000 0.00% NET TRANSFERS ‐ 500,000 44,301 44,301 (455,699) 8.86% CHANGE IN FUND BALANCE (35,428) (4,819,258) 1,715,114 1,750,542 6,534,372 N/A BEGINNING FUND BALANCE, Jan 1 8,356,704 8,238,935 8,238,935 (117,769) ‐ 100.00% ENDING FUND BALANCE, Jun 30 8,321,276$ 3,419,677$ 9,954,049$ 1,632,773$ 6,534,372$ 291.08% FAMILY FIRST CENTER VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 17 of 30 ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. YTD budgets are not prepared for Enterprise Funds. Most Enterprise Funds maintain two separate “management funds”, an operating fund and a capital fund. The funds are consolidated for budget/reporting purposes. Operating budgets lapse at the end of the year. Project budgets are adopted when funding is secured, and balances are carried forward each year until they are either 1) fully spent or 2) reallocated to another project through the budget adjustment process. A listing of project balances for each Enterprise Fund is included, along with a reconciliation to the amounts reported as “Capital Outlay”. Airport Fund This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and maintenance of the Renton Municipal Airport. The lease revenues were previously classified as charges for services but are not being reflected in their own line item below. Charges for Services & Rents. Leases and Misc. fees – Increase over prior year primarily relates to an account clean up in 2021 which split the prior year into two amounts which total $1.6M which is on par with the current year. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental ‐$ 229,240$ 5,334$ 5,334$ (223,906)$ 2.33% Charges for services 850,481 3,047,910 1,742,932 892,451 (1,304,978) 57.18% Rents, leases, and misc fees 800,090 ‐ ‐ (800,090) ‐ N/A Interest and other misc 17,135 3,857 17,612 477 13,755 456.62% TOTAL REVENUES 1,667,706 3,281,007 1,765,878 98,172 (1,515,129) 53.82% EXPENSES: Personnel 531,374 1,457,266 541,130 (9,756) 916,136 37.13% Supplies 10,069 39,471 46,805 (36,736) (7,334) 118.58% Contracted Services 182,987 1,037,468 273,508 (90,521) 763,960 26.36% Internal Services 199,228 448,996 224,498 (25,270) 224,498 50.00% TOTAL OPERATING EXPENSES 923,658 2,983,201 1,085,941 (162,283) 1,897,260 36.40% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 744,048 297,806 679,937 (64,111) 382,131 228.32% TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY 255,671 6,259,960 120,297 135,374 6,139,663 1.92% TRANSFERS OUT ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 488,377 (5,962,154) 559,640 71,263 6,521,794 N/A BEGINNING FUND BALANCE, Jan 1 7,558,405 7,741,751 7,741,751 183,346 ‐ 100.00% ENDING FUND BALANCE, Jun 30 8,046,782$ 1,779,597$ 8,301,391$ 254,609$ 6,521,794$ 466.48% Operating Reserve 216,784 241,858 241,858 AVAILABLE FUND BALANCE 7,829,998$ 1,537,739$ 8,059,533$ VARIANCE AIRPORT Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 18 of 30 Solid Waste Fund This fund accounts for revenues and expenses for administration and operating of solid waste, recycling, and yard waste collection services for the City. Charges for Services – This account will fluctuate based on actual payments received for services. Due to the utility moratorium, all utilities revenues have been down during the pandemic. With the moratorium lifted in September of 2021, many prior balances were paid in full showing an increase from prior year. Contracted Services‐ Contracted services will fluctuate with the charges for services as this line item includes payment to the City’s garbage hauler as well as King County dump fees. Current year expenditures also have been impacted due to increase of prices from the garbage hauler consistent with increases in CPI. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 69,496$ 313,136$ 34,783$ (34,713)$ (278,353)$ 11.11% Charges for services 8,792,529 23,815,136 12,508,759 3,716,230 (11,306,377) 52.52% Interest and other misc 5,712 5,000 10,307 4,595 5,307 206.14% TOTAL REVENUES 8,867,737 24,133,272 12,553,849 3,686,112 (11,579,423) 52.02% EXPENSES: Personnel 252,805 813,792 278,368 (25,563) 535,424 34.21% Supplies 471 11,900 6,816 (6,345) 5,084 57.28% Contracted Services 8,112,556 23,734,075 10,786,843 (2,674,287) 12,947,232 45.45% Internal Services 159,641 364,393 182,197 (22,556) 182,196 50.00% TOTAL OPERATING EXPENSES 8,525,473 24,924,160 11,254,224 (2,728,751) 13,669,936 45.15% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 342,264 (790,888) 1,299,625 957,361 2,090,513 N/A TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY ‐ ‐ ‐ ‐ ‐ N/A TRANSFERS OUT ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 342,264 (790,888) 1,299,625 957,361 2,090,513 N/A BEGINNING FUND BALANCE, Jan 1 2,771,562 3,392,243 3,392,243 620,681 ‐ 100.00% ENDING FUND BALANCE, Jun 30 3,113,826$ 2,601,355$ 4,691,868$ 1,578,042$ 2,090,513$ 180.36% Operating Reserve 400,000 400,000 400,000 AVAILABLE FUND BALANCE 2,713,826$ 2,201,355$ 4,291,868$ SOLID WASTE VARIANCE Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 19 of 30 Golf Course Fund This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and maintenance of the Maplewood Golf Course. Interest and other Misc. – Amount over prior year represents funds that were transferred and loaned to the golf course from the general fund to help pay for the new golf carts. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 1,392,910$ 2,170,763$ 1,344,666$ (48,244)$ (826,097)$ 61.94% Rents, leases, and misc fees 162,057 527,600 182,696 20,639 (344,904) 34.63% Interest and other misc 2,196 (122,192) 229,001 226,805 351,193 N/A TOTAL REVENUES 1,557,163 2,576,171 1,756,363 199,200 (819,808) 68.18% EXPENSES: Personnel 744,799 1,777,316 793,487 (48,688) 983,829 44.65% Supplies 185,817 321,704 179,303 6,514 142,401 55.74% Contracted Services 83,706 157,250 65,448 18,258 91,802 41.62% Internal Services 175,129 460,660 230,330 (55,201) 230,330 50.00% TOTAL OPERATING EXPENSES 1,189,451 2,716,930 1,268,568 (79,117) 1,448,362 46.69% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 367,712 (140,759) 487,795 120,083 628,554 N/A DEBT SERVICE: Principal ‐ 36,774 14,673 (14,673) 22,101 39.90% Interest ‐ 1,740 733 (733) 1,007 42.13% TOTAL DEBT SERVICE ‐ 38,514 15,406 (15,406) 23,108 40.00% CAPITAL OUTLAY 12,662 627,410 241,476 (228,814) 385,934 38.49% TRANSFERS IN 34,050 852,661 118,050 84,000 (734,611) 13.84% TRANSFERS OUT 34,050 272,200 118,050 (84,000) 154,150 43.37% NET TRANSFERS ‐ 580,461 ‐ ‐ (580,461) 0.00% CHANGE IN FUND BALANCE 355,050 (226,222) 230,913 (124,137) 457,135 N/A BEGINNING FUND BALANCE, Jan 1 476,746 1,222,897 1,222,897 746,151 ‐ 100.00% ENDING FUND BALANCE, Jun 30 831,796$ 996,675$ 1,453,810$ 622,014$ 457,135$ 145.87% Operating Reserve 641,500 746,233 746,233 AVAILABLE FUND BALANCE 190,296$ 250,442$ 707,577$ GOLF COURSE VARIANCE Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 20 of 30 Water Utility Fund This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and maintenance of the City’s water utility. Interest and other Misc. – Increase over prior year is due to increased system development charges and increased special assessment district charges. Personnel ‐ There was a decrease in personnel costs over the prior year due to 3 vacant positions that have yet to be all filled. The amount of personnel costs under budget is due to the budget assuming all positions would be filled for the entire year. Contracted services – The increase in contracted services expenditures is primarily due to increased electricity expenditures from prior year. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 7,841,786$ 18,449,435$ 7,913,550$ 71,764$ (10,535,885)$ 42.89% Rents, leases, and misc fees 92,910 136,591 124,511 31,601 (12,080) 91.16% Interest and other misc 408,901 521,000 1,047,419 638,518 526,419 201.04% TOTAL REVENUES 8,343,597 19,107,026 9,085,480 741,883 (10,021,546) 47.55% EXPENSES: Personnel 2,308,320 5,142,486 2,141,271 167,049 3,001,215 41.64% Supplies 401,156 885,876 496,992 (95,836) 388,884 56.10% Contracted Services 1,410,784 3,620,552 1,516,062 (105,278) 2,104,490 41.87% Internal Services 1,343,198 2,770,885 1,385,442 (42,244) 1,385,443 50.00% TOTAL OPERATING EXPENSES 5,463,458 12,419,799 5,539,767 (76,309) 6,880,032 44.60% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 2,880,139 6,687,227 3,545,713 665,574 (3,141,514) 53.02% DEBT SERVICE: Principal 345,818 1,556,117 315,517 30,301 1,240,600 20.28% Interest 98,375 190,874 90,937 7,438 99,937 47.64% TOTAL DEBT SERVICE 444,193 1,746,991 406,454 37,739 1,340,537 23.27% CAPITAL OUTLAY 1,969,673 35,391,781 1,981,569 (11,896) 33,410,212 5.60% TRANSFERS OUT ‐ 18,868 ‐ ‐ 18,868 0.00% NET TRANSFERS ‐ (18,868) ‐ ‐ 18,868 N/A CHANGE IN FUND BALANCE 466,273 (30,470,413) 1,157,690 691,417 31,628,103 N/A BEGINNING FUND BALANCE, Jan 1 40,776,314 43,849,867 43,849,867 3,073,553 ‐ 100.00% ENDING FUND BALANCE, Jun 30 41,242,587$ 13,379,454$ 45,007,557$ 3,764,970$ 31,628,103$ 336.39% Restricted for Debt Service 1,394,050 1,394,050 1,394,050 Operating Reserve 1,624,606 1,705,875 1,705,875 AVAILABLE FUND BALANCE 38,223,931$ 10,279,529$ 41,907,632$ WATER UTILITY VARIANCE Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 21 of 30 Wastewater Utility Fund This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and maintenance of the City’s wastewater utility. Charges for services – Wastewater charges increased from the prior year due to COVID‐19. Utility revenues are recognized when received for budgetary purposes. A moratorium on disconnections for non‐payment has been in effect since March 2020 and was lifted in September of 2021. With the moratorium lifted in September of 2021, many prior balances were paid in full showing an increase from prior year. Interest and other misc. – Amounts increased from prior year due to increased system development charges. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 36,375$ 62,422$ 48,320$ 11,945$ (14,102)$ 77.41% Charges for services 5,455,571 11,671,891 5,768,817 313,246 (5,903,074) 49.42% Fines and penalties 1,439 ‐ 56 (1,383) 56 N/A Interest and other misc 456,734 444,000 572,548 115,814 128,548 128.95% TOTAL REVENUES 5,950,119 12,178,313 6,389,741 439,622 (5,788,572) 52.47% EXPENSES: Personnel 1,119,835 2,973,166 1,176,973 (57,138) 1,796,193 39.59% Supplies 47,122 73,842 20,998 26,124 52,844 28.44% Contracted Services 1,044,710 2,461,063 1,143,396 (98,686) 1,317,667 46.46% Internal Services 1,003,121 1,952,140 976,070 27,051 976,070 50.00% TOTAL OPERATING EXPENSES 3,214,788 7,460,211 3,317,437 (102,649) 4,142,774 44.47% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 2,735,331 4,718,102 3,072,304 336,973 (1,645,798) 65.12% DEBT SERVICE: Principal ‐ 624,400 ‐ ‐ 624,400 0.00% Interest 42,551 85,491 39,597 2,954 45,894 46.32% TOTAL DEBT SERVICE 42,551 709,891 39,597 2,954 670,294 5.58% CAPITAL OUTLAY 1,981,361 17,687,727 1,853,942 127,419 15,833,785 10.48% TRANSFERS OUT ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ 48,400 ‐ ‐ (48,400) 0.00% CHANGE IN FUND BALANCE 711,419 (13,631,116) 1,178,765 467,346 14,809,881 N/A BEGINNING FUND BALANCE, Jan 1 23,996,217 20,788,687 20,788,687 (3,207,530) ‐ 100.00% ENDING FUND BALANCE, Jun 30 24,707,636$ 7,157,571$ 21,967,452$ (2,740,184)$ 14,809,881$ 306.91% Restricted for Debt Service 661,227 661,227 661,227 Operating Reserve 913,756 960,757 960,757 AVAILABLE FUND BALANCE 23,132,653$ 5,535,587$ 20,345,468$ WASTEWATER UTILITY VARIANCE Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 22 of 30 King County Metro Fund This fund accounts for revenues and expenses for operation of the City’s wastewater utility, as it relates to charges for and payment to King County Metro for water treatment services. Charges for Services – Utility revenues are recognized when received for budgetary purposes. With the moratorium lifted in September of 2021, many prior balances were paid in full showing an increase from prior year as well as increased rates set by King County. Contracted Services – January 2022 payment to King County Metro was paid in December 2021, current year figures will be only reflect 11 months of cost due to this difference in timing of payment. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 8,571,287$ 18,495,877$ 9,292,307$ 721,020$ (9,203,570)$ 50.24% Interest and other misc 9,219 ‐ 11,578 2,359 11,578 N/A TOTAL REVENUES 8,580,506 18,495,877 9,303,885 723,379 (9,191,992) 50.30% EXPENSES: Contracted Services 8,699,340 18,495,877 7,637,611 1,061,729 10,858,266 41.29% TOTAL OPERATING EXPENSES 8,699,340 18,495,877 7,637,611 1,061,729 10,858,266 41.29% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS (118,834) ‐ 1,666,274 1,785,108 1,666,274 N/A TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE (118,834) ‐ 1,666,274 1,785,108 1,666,274 N/A BEGINNING FUND BALANCE, Jan 1 4,729,749 3,764,012 3,764,012 (965,737) ‐ 100.00% ENDING FUND BALANCE, Jun 30 4,610,915$ 3,764,012$ 5,430,286$ 819,371$ 1,666,274$ 144.27% Operating Reserve 380,000 380,000 380,000 AVAILABLE FUND BALANCE 4,230,915$ 3,384,012$ 5,050,286$ KING COUNTY METRO VARIANCE Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 23 of 30 Surface Water Utility Fund This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and maintenance of the City’s surface water utility. Grants/Intergovernmental – Federal/State/Local grant revenues vary significantly from year‐to‐year based on what grants have been awarded and the timing of grant expenditures and related reimbursement requests. Grant revenues are budgeted at 100% of the award at the time the grant agreement is finalized, and any amounts not received are carried forward each year until either 1) the grant funds are fully received or 2) the grant agreement expires. Charges for Services – Utility revenues are recognized when received for budgetary purposes. A moratorium on disconnections for non‐payment has been in effect since March 2020 and was lifted in September of 2021. With the moratorium lifted in September of 2021, many prior balances were paid in full showing an increase in month service fees from prior year. This increase was offset by a decrease in inspection fees of ($146K) from prior year. Interest and Other – an increase over prior year is primarily related to an increase in system development charges largely from work done at the Family First Center development site. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 16,125$ 50,962$ 14,334$ (1,791)$ (36,628)$ 28.13% Grants / intergovernmental 719,282 14,222,565 1,014,980 295,698 (13,207,585) 7.14% Charges for services 6,380,972 12,483,635 6,409,515 28,543 (6,074,120) 51.34% Interest and other misc 380,867 5,306,821 1,113,177 732,310 (4,193,644) 20.98% TOTAL REVENUES 7,497,246 32,063,983 8,552,006 1,054,760 (23,511,977) 26.67% EXPENSES: Personnel 1,883,585 4,115,816 1,940,384 (56,799) 2,175,432 47.14% Supplies 48,591 177,267 44,980 3,611 132,287 25.37% Contracted Services 878,895 4,507,600 888,922 (10,027) 3,618,678 19.72% Internal Services 1,347,036 2,869,478 1,434,739 (87,703) 1,434,739 50.00% TOTAL OPERATING EXPENSES 4,158,107 11,670,161 4,309,025 (150,918) 7,361,136 36.92% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 3,339,139 20,393,822 4,242,981 903,842 (16,150,841) 20.81% DEBT SERVICE: Principal ‐ 510,000 ‐ ‐ 510,000 0.00% Interest 50,985 100,842 48,088 2,897 52,754 47.69% TOTAL DEBT SERVICE 50,985 610,842 48,088 2,897 562,754 7.87% CAPITAL OUTLAY 2,634,633 25,104,106 2,115,057 519,576 22,989,049 8.43% Transfers In ‐ 118,033 ‐ ‐ (118,033) 0.00% Transfers Out 18,347 118,033 ‐ 18,347 118,033 0.00% NET TRANSFERS (18,347) ‐ ‐ 18,347 ‐ N/A CHANGE IN FUND BALANCE 635,174 (5,321,126) 2,079,836 1,444,662 7,400,962 N/A BEGINNING FUND BALANCE, Jan 1 21,610,356 21,682,758 21,682,758 72,402 ‐ 100.00% ENDING FUND BALANCE, Jun 30 22,245,530$ 20,147,570$ 23,762,594$ 1,517,064$ 3,615,024$ 117.94% Restricted for Debt Service 754,868 754,868 754,868 Operating Reserve 1,109,340 1,190,692 1,190,692 AVAILABLE FUND BALANCE 20,381,322$ 18,202,010$ 21,817,034$ SURFACE WATER UTILITY VARIANCE Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 24 of 30 INTERNAL SERVICE FUNDS Internal service funds are used to account for the goods and services furnished by one City department to other City departments on a cost reimbursement basis. YTD budgets are not prepared for Internal Service Funds. Equipment Rental Fund This fund accounts for revenues and expenses for administration, purchase, and maintenance of the City’s vehicle and equipment Fleet services. Departments pay in monthly amounts for maintenance and operations. Replacement reserves are paid monthly over the estimated useful lives of each individual vehicle or piece of equipment. These reverses are accumulated in fund balance so that they are available to fund the replacement of the vehicle/equipment when the time comes. Supplies – Supplies increased from prior year primarily due to fuel expenditures which are heavily influenced by the current market prices of fuel which are significantly higher than prior year. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 39,326$ ‐$ 44,563$ 5,237$ 44,563$ N/A Interdepartmental services 3,264,164 6,262,234 3,186,636 (77,528) (3,075,598) 50.89% Interest and other misc 13,931 12,000 46,229 32,298 34,229 385.24% TOTAL REVENUES 3,317,421 6,274,234 3,277,428 (39,993) (2,996,806) 52.24% EXPENSES: Personnel 536,982 1,300,414 555,289 (18,307) 745,125 42.70% Supplies 653,809 1,496,153 879,841 (226,032) 616,312 58.81% Contracted Services 167,765 133,166 159,637 8,128 (26,471) 119.88% Internal Services 16,969 30,768 15,384 1,585 15,384 50.00% TOTAL OPERATING EXPENSES 1,375,525 2,960,501 1,610,151 (234,626) 1,350,350 54.39% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 1,941,896 3,313,733 1,667,277 (274,619) (1,646,456) 50.31% TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY 253,304 4,025,718 (1,111) 254,415 4,026,829 ‐0.03% TRANSFERS IN ‐ 115,671 ‐ ‐ (115,671) 0.00% TRANSFERS OUT ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ 115,671 ‐ ‐ (115,671) 0.00% CHANGE IN FUND BALANCE 1,688,592 (596,314) 1,668,388 (20,204) 2,264,702 N/A BEGINNING FUND BALANCE, Jan 1 6,376,259 10,125,169 10,125,169 3,748,910 ‐ 100.00% ENDING FUND BALANCE, Jun 30 8,064,851$ 9,528,855$ 11,793,557$ 3,728,706$ 2,264,702$ 123.77% Operating Reserves 9,528,855$ 9,528,855$ AVAILABLE FUND BALANCE 8,064,851$ ‐$ 2,264,702$ EQUIPMENT RENTAL VARIANCE Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 25 of 30 Insurance Fund This fund accounts for the administration and operation of the City’s self‐insurance programs for property losses, liability, workers’ compensation, and unemployment compensation. Expenses are paid by the Insurance Fund and rates are charged to departments based on their claims history over the preceding five years and coverage requirements. Interdepartmental services – The increase over prior year is due to additional charge outs to City departments for additional anticipated claims costs. Personnel – Decrease in personnel costs are primarily related to a decrease in unemployment and workers compensation claims partially offset by salary increases for cola in 2022. Contracted Services – Decrease in contracted services costs from prior year primarily are due to a decrease in year‐to‐date liability claims expenditures. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 1,559,542$ 4,234,653$ 1,980,672$ 421,130$ (2,253,981)$ 46.77% Interest and other misc 161,985 22,000 175,789 13,804 153,789 799.04% TOTAL REVENUES 1,721,527 4,256,653 2,156,461 434,934 (2,100,192) 50.66% EXPENSES: Personnel 578,480 1,621,091 450,138 128,342 1,170,953 27.77% Supplies 30 6,956 ‐ 30 6,956 0.00% Contracted Services 1,216,329 2,706,973 1,043,512 172,817 1,663,461 38.55% TOTAL OPERATING EXPENSES 1,794,839 4,335,020 1,493,650 301,189 2,841,370 34.46% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS (73,312) (78,367) 662,811 736,123 741,178 N/A TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY ‐ ‐ ‐ ‐ ‐ N/A Transfers In ‐ 152,772 152,772 152,772 ‐ 100.00% Transfers Out ‐ 52,868 ‐ ‐ 52,868 0.00% NET TRANSFERS ‐ 99,904 152,772 152,772 52,868 152.92% CHANGE IN FUND BALANCE (73,312) 21,537 815,583 888,895 794,046 3786.89% BEGINNING FUND BALANCE, Jan 1 19,860,208 20,494,538 20,494,538 634,330 ‐ 100.00% ENDING FUND BALANCE, Jun 30 19,786,896$ 20,516,075$ 21,310,121$ 1,523,225$ 794,046$ 103.87% Operating Reserves 13,952,413 20,439,736 20,439,736 AVAILABLE FUND BALANCE 5,834,483$ 76,339$ 870,385$ INSURANCE VARIANCE Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 26 of 30 Information Technology Fund This fund accounts for the administration, purchase, and operation of the City’s information technology systems, including computer hardware and software, network servers and infrastructure, phone systems, and cell phones. Expenses are paid by the Information Technology Fund and rates are charged to departments based on use. Interdepartmental services – The increase over prior year for interdepartmental services primarily relates to an increase in charges to departments for the replacement reserve of the City’s ERP system Eden which was budgeted in 2022. Personnel – The amount of personnel costs over prior year is primarily due to open positions in 2021; the positions that had been held vacant due to the pandemic have been filled to support the increase in staff back at the office and the reopening of city hall as well as a cost‐of‐living adjustment in 2022. Supplies & Contracted Services ‐ The amount over prior year largely relates to the purchase of police body cameras. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 99,490$ 150,000$ 147,679$ 48,189$ (2,321)$ 98.45% Interdepartmental services 3,217,950 9,128,746 4,564,374 1,346,424 (4,564,372) 50.00% Interest and other misc 33,023 7,000 8,400 (24,623) 1,400 120.00% TOTAL REVENUES 3,350,463 9,285,746 4,720,453 1,369,990 (4,565,293) 50.84% EXPENSES: Personnel 1,426,797 3,648,251 1,552,275 (125,478) 2,095,976 42.55% Supplies 205,389 2,683,477 898,317 (692,928) 1,785,160 33.48% Contracted Services 1,015,450 3,026,807 1,319,839 (304,389) 1,706,968 43.60% TOTAL OPERATING EXPENSES 2,647,636 9,358,535 3,770,431 (1,122,795) 5,588,104 40.29% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 702,827 (72,789) 950,022 247,195 1,022,811 N/A TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY 94,904 3,308,171 105,072 (10,168) 3,203,099 3.18% TRANSFERS IN 60,685 2,791,322 2,003,064 1,942,379 (788,258) 71.76% NET TRANSFERS 60,685 2,791,322 2,003,064 1,942,379 (788,258) 71.76% CHANGE IN FUND BALANCE 668,608 (589,638) 2,848,014 2,179,406 3,437,652 N/A BEGINNING FUND BALANCE, Jan 1 3,939,941 3,653,455 3,653,455 (286,486) ‐ 100.00% ENDING FUND BALANCE, Jun 30 4,608,549$ 3,063,817$ 6,501,469$ 1,892,920$ 3,437,652$ 212.20% Operating Reserves 2,068,477$ 2,068,477$ AVAILABLE FUND BALANCE 4,608,549$ 995,340$ 1,584,978$ INFORMATION TECHNOLOGY VARIANCE Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 27 of 30 Facilities Fund This fund accounts for the administration, maintenance, and operation of City‐owned facilities. Expenses are paid by the Facilities Fund and rates are charged to departments based on square footage. Interdepartmental Services – The increase over prior year is due to increased expenditures in facilities which are charged through an internal service fund charge to each department. Personnel ‐ The amount of personnel costs over prior year is primarily due to open positions in 2021; the positions that had been held vacant due to the pandemic have been filled to support the increase in staff back at the office and the reopening of city hall as well as a cost‐of‐living adjustment in 2022. Supplies ‐ The increase in supplies over prior year largely relates to the increase supplies needed to support the increase in staff back at city hall. Also, a budget adjustment will be made in 2022 for a security system upgrades which should have been adjusted during Q1 budget adjustment. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 2,996,365$ 6,649,970$ 3,300,958$ 304,593$ (3,349,012)$ 49.64% Interest and other misc 620 4,000 1,136 516 (2,864) 28.40% TOTAL REVENUES 2,996,985 6,653,970 3,302,094 305,109 (3,351,876) 49.63% EXPENSES: Personnel 1,434,806 4,224,986 1,759,235 (324,429) 2,465,751 41.64% Supplies 177,143 331,400 404,370 (227,227) (72,970) 122.02% Contracted Services 578,197 1,805,887 648,327 (70,130) 1,157,560 35.90% Internal Services 64,841 130,783 65,980 (1,139) 64,803 50.45% TOTAL OPERATING EXPENSES 2,254,987 6,493,056 2,877,912 (622,925) 3,615,144 44.32% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 741,998 160,914 424,182 (317,816) 263,268 263.61% TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY 40,063 ‐ 4,103 35,960 (4,103) N/A Transfers In ‐ 10,700 ‐ ‐ (10,700) 0.00% NET TRANSFERS ‐ 10,700 ‐ ‐ (10,700) 0.00% CHANGE IN FUND BALANCE 701,935 171,614 420,079 (281,856) 248,465 244.78% BEGINNING FUND BALANCE, Jan 1 504,167 785,189 785,189 281,022 ‐ 100.00% ENDING FUND BALANCE, Jun 30 1,206,102$ 956,803$ 1,205,268$ (834)$ 248,465$ 125.97% FACILITIES VARIANCE Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 28 of 30 Communications Fund This fund accounts for community and intergovernmental relations and communications with the public. Communications is a major activity of the City’s administration responsible for external communications, employee communications, media relations, and coordination of all departments in producing the City’s website. Expenses are paid by the Communications Fund and rates are charged to departments based on usage. Interdepartmental services – The increase over prior year primarily relates to an increase in budgeted charges to each department due to increased budgets for expenditure items include personnel which received a cost‐of‐living adjustment in 2022. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 577,368$ 1,373,535$ 686,586$ 109,218$ (686,949)$ 49.99% Interest and other misc 243 1,000 122 (121) (878) 12.20% TOTAL REVENUES 577,611 1,377,535 686,708 109,097 (690,827) 49.85% EXPENSES: Personnel 335,367 946,412 411,930 (76,563) 534,482 43.53% Supplies 11,147 55,432 19,918 (8,771) 35,514 35.93% Contracted Services 85,383 354,607 137,966 (52,583) 216,641 38.91% Internal Services 1,000 2,034 1,017 (17) 1,017 50.00% TOTAL OPERATING EXPENSES 432,897 1,358,485 570,831 (137,934) 787,654 42.02% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 144,714 19,050 115,877 (28,837) 96,827 608.28% TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY ‐ ‐ ‐ ‐ ‐ N/A Transfers Out ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 144,714 19,050 115,877 (28,837) 96,827 608.28% BEGINNING FUND BALANCE, Jan 1 151,624 141,517 141,517 (10,107) ‐ 100.00% ENDING FUND BALANCE, Jun 30 296,338$ 160,567$ 257,394$ (38,944)$ 96,827$ 160.30% COMMUNICATIONS VARIANCE Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 29 of 30 Health Insurance Fund This fund accounts for the City’s self‐insured health insurance program. Expenses/claims are paid by the Health Insurance Fund and rates are charged to employees and departments based on annual premiums determined by the City’s Employee Health Plan Board for each type of coverage elected by the employee; paid semi‐monthly in conjunction with each payroll. Premiums – The increase in premiums is due to an increase in the number of staff in 2022 as well as an increase in the premium rates charged in 2022. Medical/Dental Claims – Decrease from prior year is due to a decrease in claim expenditures for employee medical and dental services. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Premiums 6,111,494$ 13,417,329$ 6,333,547$ 222,053$ (7,083,782)$ 47.20% Interest and other misc 177,291 149,488 179,508 2,217 30,020 120.08% TOTAL REVENUES 6,288,785 13,566,817 6,513,055 224,270 (7,053,762) 48.01% EXPENSES: Personnel 154,628 375,034 187,104 (32,476) 187,930 49.89% Medical/Dental Claims 5,514,181 12,752,837 5,305,845 208,336 7,446,992 41.61% Supplies 844 7,500 660 184 6,840 8.80% Contracted Services 227,193 514,456 242,665 (15,472) 271,791 47.17% Internal Services 40,088 93,669 46,835 (6,747) 46,834 50.00% TOTAL OPERATING EXPENSES 5,936,934 13,743,496 5,783,109 153,825 7,960,387 42.08% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 351,851 (176,679) 729,946 378,095 906,625 N/A TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 351,851 (176,679) 729,946 378,095 906,625 N/A BEGINNING FUND BALANCE, Jan 1 5,773,429 6,655,137 6,655,137 881,708 ‐ 100.00% ENDING FUND BALANCE, Jun 30 6,125,280$ 6,478,458$ 7,385,083$ 1,259,803$ 906,625$ 113.99% Insurance Reserves 3,774,249 4,123,049 4,123,049 AVAILABLE FUND BALANCE 2,351,031$ 2,355,409$ 3,262,034$ HEALTH INSURANCE VARIANCE Quarterly Financial Report City of Renton, Washington 2nd Quarter 2022 Page 30 of 30 Retiree Healthcare Fund This fund accounts for the City’s self‐insured health insurance program for LEOFF1 retirees. Benefits include medical, prescription drug, Medicare Part B premiums, long‐term care, and vision coverage for retired law enforcement officers and firefighters that were employed by the City prior to October 1, 1977. Dependent spouses and children are not covered. 100% of premiums are provided by the General Fund with annual contributions determined after review of a report prepared by actuaries. CONTACT INFORMATION This report is prepared by the Finance Department. For additional financial information, please also review our website: http://www.rentonwa.gov/. For any questions about the report, please feel free to contact Nate Malone at nmalone@rentonwa.gov or Kristin Trivelas ktrivelas@rentonwa.gov . 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental ‐$ 50,067$ ‐$ ‐$ (50,067)$ 0.00% Premiums 1,312,342 2,640,000 1,312,342 ‐ (1,327,658) 49.71% Interest and other misc 70,431 20,000 96,708 26,277 76,708 483.54% TOTAL REVENUES 1,382,773 2,710,067 1,409,050 26,277 (1,301,017) 51.99% EXPENSES: Personnel 45,365 110,285 38,448 6,917 71,837 34.86% Medical/Dental Claims 493,379 1,312,693 566,624 (73,245) 746,069 43.17% Contracted Services 25,212 29,311 28,685 (3,473) 626 97.86% TOTAL OPERATING EXPENSES 563,956 1,452,289 633,757 (69,801) 818,532 43.64% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 818,817 1,257,778 775,293 (43,524) (482,485) 61.64% TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 818,817 1,257,778 775,293 (43,524) (482,485) 61.64% BEGINNING FUND BALANCE, Jan 1 16,541,245 18,188,260 18,188,260 1,647,015 ‐ 100.00% ENDING FUND BALANCE, Jun 30 17,360,062$ 19,446,038$ 18,963,553$ 1,603,491$ (482,485)$ 97.52% Insurance Reserves 17,360,062 19,446,038 18,963,553 AVAILABLE FUND BALANCE ‐$ ‐$ ‐$ RETIREE HEALTHCARE VARIANCE