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HomeMy WebLinkAboutQUARTER 4 2023Page 1 of 36   OVERVIEW  This quarterly financial report reflects the city’s revenue and expenditures/expenses for the fiscal year through December 31,  2023. 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 6124, which includes the mid‐biennium quarter budget  adjustment approved December 4th, 2023.     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 102,213,407$     107,357,943$    112,900,398$    10,686,991$     5,542,455$      105.16% Licenses & Permits 7,455,983            5,862,660           6,721,960           (734,023)$         859,300            114.66% Intergovernmental 17,604,837          8,951,803           5,396,037           (12,208,800)$    (3,555,766)       60.28% Charges for Services 10,101,988          10,800,250         11,287,999         1,186,011$       487,749            104.52% Fines and Penalties 4,142,205            3,702,050           3,763,898           (378,307)$         61,848              101.67% Miscellaneous 3,178,270            3,846,659           6,306,440           3,128,170$       2,459,781        163.95% Other Financing Sources (Transfer‐In, etc)(80,253)                1,998,485           1,936,996           2,017,249$       (61,489)             96.92% TOTAL REVENUES 144,616,437       142,519,850      148,313,728      3,697,291          5,793,878        104.07% EXPENDITURES City Attorney 2,802,425            3,227,575           3,017,713           (215,288)            209,862            93.50% Community and Economic Development 11,231,574          15,085,126         13,022,894         (1,791,320)        2,062,232        86.33% Council 656,186               743,244              706,578              (50,392)              36,666              95.07% Court Services 3,082,719            3,700,910           3,234,466           (151,747)            466,444            87.40% Equity, Housing, and Human Services 3,522,799            5,767,958           3,512,804           9,995                  2,255,154        60.90% Executive Services 5,411,697            6,586,264           5,945,937           (534,240)            640,327            90.28% Finance 4,581,257            5,448,865           4,843,135           (261,878)            605,730            88.88% Human Resources 1,480,889            1,946,372           1,601,638           (120,749)            344,734            82.29% Parks and Recreation 15,507,241          17,754,998         16,529,849         (1,022,608)        1,225,149        93.10% Police 46,278,533          50,239,198         49,723,133         (3,444,600)        516,065            98.97% Public Works 15,760,740          17,279,882         16,372,904         (612,164)            906,978            94.75% Other Non‐Departmental 19,797,063          16,777,223         14,182,181         5,614,882          2,595,042        84.53% TOTAL EXPENDITURES 130,113,123       144,557,615      132,693,232      (2,580,109)        11,864,383      91.79% Change in Fund Balance 14,503,314          (2,037,765)          15,620,496         1,117,182          17,658,261      N/A Beginning Fund Balance 69,102,662          83,605,978         83,605,978         14,503,316        ‐                     100.00% ENDING FUND BALANCE 83,605,978$       81,568,213$      99,226,474$      15,620,498$     17,658,261$    121.65% Operating Reserve 13,994,674          17,346,914         17,346,914          Economic Development Reserve 2,500,000            2,500,000           2,500,000            AVAILABLE FUND BALANCE 67,111,304$       61,721,299$      79,379,560$       Summary of Sources and Uses Favorable (Unfavorable) 2022 2023 Variance YTD Actual YTD Budget YTD Actual Quarterly Financial Report 4th Quarter 2023  Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 2 of 36   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 favorable/(unfavorable) format.    TAXES        Property Tax – Property tax collections by King County are above prior year. The increase is due to the city increasing the  property tax levy the allowable 1% by state law as well as an additional levy of $1.5M.     Local Retail Sales Tax – Local retail sales tax exceeded prior year and annual budget. The majority of the increase in local  retail sale tax revenues over the prior year is coming from the services, manufacturing, and construction 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 December sales tax report for information regarding sales tax figures by industry.    Criminal Justice Sales Tax – Criminal justice sales tax represents a 0.1% sales tax imposed by the county for criminal justice  purposes. The county must share 90% of the revenue 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.    Natural Gas Use Tax – Natural gas use tax represents a 6% tax on the usage of natural gas within the city that has not  otherwise been subject to city utility tax. The increase over 2023 budget and increase from prior year is due to higher than  anticipated usage which fluctuates from year to year and is only paid by a limited number of larger companies.     Admissions Tax – An increase in admission tax over prior year is due to the economic recovery from the pandemic where  many locations remained on limited capacity or were not operating their events in the first quarter of 2022 as well as a large  increase from a new taxpayer in Renton. Admissions tax is performing higher than budget due to the recent opening of a  large new taxpayer in Renton resulting in higher tax collection.      Utility Tax – Electrical, natural gas and city utilities are the primary drivers of the increase over prior year and amount above  YTD budget due to increased customer rates coupled with increased utility usage. Rates for utility users beginning January  2023 increased 8.7% for electricity and 6.4% for natural gas. These increases were partially offset by decreases in cable utility  tax due to decreased customer base as well as cellular and phone utility tax due to customers converting to internet and data  services. The breakdown of utility tax is as follows:  2022 2023 2023 Actual Budget Actual $ % $ % Property Tax 23,243,679         25,163,845          25,132,192         1,888,513         8.1%(31,653)                ‐0.1% Local Retail Sales Tax 37,514,922         36,513,193          38,106,887         591,965              1.6% 1,593,694         4.4% State Sales Tax Credit 746,643                 736,380                 728,108                 (18,535)                ‐2.5% (8,272)                   ‐1.1% Criminal Justice Sales Tax 3,830,215            3,809,795             3,939,746            109,531              2.9% 129,951              3.4% Natural Gas Use Tax 221,849                 350,000                 331,273                 109,424              49.3%(18,727)                ‐5.4% Admission Tax 367,107                 833,885                 1,264,101            896,994              244.3% 430,216              51.6% Utility Tax 17,463,626         17,909,050          18,314,683         851,057              4.9% 405,633              2.3% Leasehold Excise Tax 176,172                 180,795                 262,911                 86,739                 49.2% 82,116                 45.4% Gambling Excise Tax 4,155,272            3,961,000             3,773,375            (381,897)             ‐9.2% (187,625)             ‐4.7% B&O Tax 14,493,922         17,900,000          21,047,122         6,553,200         45.2% 3,147,122         17.6% YTD Total 102,213,407$   107,357,943$    112,900,398$   10,686,991$   10.5% 5,542,455$      5.2% Annual Total 102,213,407$   107,357,943$     Taxes by Type Revenue 2023 vs. 2022 2023 vs. Budget Year to Date through December Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 3 of 36      Gambling Excise Tax – Gambling excise tax can fluctuate based on the economy; therefore, budget is established based on a  historical average from prior years. 2023 revenues decreased primarily in the card games sector which saw a 10% decrease  from prior year.      Business and Occupation (B&O) Tax – B&O tax revenues are above the 2023 budget and increased from prior year due to  the increase in the tax cap in 2023 as well as increased tax rates which were in effect for reporting periods beginning after  January 1, 2023.     LICENSES & PERMITS        Business Licenses – The amount over the 2023 year‐to‐date budget is due to higher than anticipated collections during  January and February. The majority of the business license revenue is collected during the months of December through  March of each year near the renewal due date.    Building Permits – Building permits are collected upon permit issuance. Building permit revenue is exceeding budget primarily  due to a few larger projects such as the new Sounders facility, UW tenant improvements at former FAA building, and the  Wizards of the Coast tenant improvements at the Southport Campus. The decrease from prior year is primarily due to the  Solera project in 2022 which was significantly larger than any permit fees paid in 2023.    INTERGOVERNMENTAL      State Shared Revenue – The breakdown of state shared revenue is as follows:    2022 2023 2023 Tax by Type YTD Actual YTD Budget YTD Actual $ % $ % Electrical 6,132,306$   6,431,394$       6,649,649$            517,343$               8.4% $    218,255 3.4% Natural Gas 1,806,540      2,054,925         2,088,098              281,558                  15.6%          33,173 1.6% Cell 566,149         499,998             485,499                  (80,650)                    ‐14.3%        (14,499)‐2.9% Phone 740,355         700,000             615,606                  (124,749)                 ‐16.9%        (84,394)‐12.1% Cable 1,371,854      1,199,115         1,171,891              (199,963)                 ‐14.6%        (27,224)‐2.3% Garbage 739,140         768,704             857,025                  117,885                  16.0%          88,321 11.5% City Utilities 6,107,281      6,254,914         6,446,916              339,635                  5.6%        192,002 3.1% YTD Total 17,463,626$ 17,909,050$     18,314,683$          851,057$               4.9%405,633$     2.3% 2023 vs. 2022 2023 vs. Budget 2022 2023 2023 Actual Budget Actual $ % $ % Franchise Fees 1,485,576            1,475,808             1,392,052            (93,523)                ‐6.3% (83,756)                ‐5.7% Business Licenses 1,130,404            932,607                 1,245,314            114,909              10.2% 312,707              33.5% Animal Licenses 62,050                    63,174                    60,820                    (1,230)                   ‐2.0% (2,354)                   ‐3.7% Building Permits 4,742,534            3,343,571             3,989,309            (753,226)             ‐15.9%645,737              19.3% ROW/Street Excavation Permits 34,399                    46,500                    33,700                    (699)                        ‐2.0% (12,800)                ‐27.5% Special Event Permits 1,020                       1,000                       765                           (255)                        ‐25.0% (235)                        ‐23.5% YTD Total 7,455,983$         5,862,660$          6,721,960$         (734,023)$          ‐9.8%859,300$           14.7% Annual Total 7,455,983$         5,862,660$           Licenses & Permits by Type Year to Date through December Revenue 2023 vs. 2022 2023 vs. Budget 2022 2023 2023 Actual Budget Actual $ % $ % State Shared Revenue 4,101,311              3,939,884$         4,129,450           28,139$             0.7% 189,566$        4.8% Federal Grants 13,364,303            3,678,836           728,723              (12,635,580)       ‐94.5% (2,950,113)       ‐80.2% State Grants 81,010                    1,165,600           483,641              402,631             497.0%(681,959)          ‐58.5% Local Grants 58,213                    167,483              54,223                 (3,990)                 ‐6.9% (113,260)          ‐67.6% YTD Total 17,604,837$          8,951,803$         5,396,037$         (12,208,800)$     ‐69.3% (3,555,766)$    ‐39.7% Annual Total 17,604,837$          8,951,803$          Intergovernmental by Type Revenue 2023 vs. 2022 2023 vs. Budget Year to Date through December Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 4 of 36       Federal/State/Local Grants – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is budgeted  at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires. The variance from year‐to‐date  budget is largely due to remaining ARPA grant funds that are unspent through 2023.    CHARGES FOR SERVICES         Public Safety Services – The decrease in public safety services from prior year and budget is primarily due to a decrease in  police school resource officers. Only one of three officers are currently being utilized due to Renton School District slowly  restarting this program after a pause during the pandemic. Private security revenue has also contributed to the decrease due  to staffing shortfalls and the need to cover minimum staffing of city operations before contracting officers for private security  opportunities. Private security service revenue is intended to offset the overtime expenditures incurred and is a net zero  impact to the city.      Development Services ‐ The decrease from prior year is primarily due to large inspection revenues received in 2022 for Philip  Arnold Park, and King County Shop building permits. The amount over budget is primarily due to increase to inspection and  plan checking revenues from the King County Metro Rapid Ride, and Cedar River Apartment projects.     Recreation/Farmer’s Market/Events – The increase over prior year is largely due to a significant amount of the recreation  facilities being closed through April of 2022. The amount over budget is primarily due to greater than anticipated revenues  at the community center for programs and rentals as well as better than expected revenues at Henry Moses Aquatic Center.    Interfund Services – Interfund services revenue increased from prior year due to the newly created sustainability division,  which is charged out to utility funds, and cost of living salary increases, which are charged to other departments. The amount  under the 2023 budget is due to a reduction of soft capital transfers for general fund personnel related to capital projects  which are based on work performed.    2022 2023 2023 Tax by Type YTD Actual YTD Budget YTD Actual $ % $ % Judicial Contribution 32,326$         50,000$         44,956$         12,630$     39.1%(5,044)$       ‐10.1% Crim Just ‐ Pop 36,822            24,725            38,880            2,058          5.6% 14,155        57.2% Crim Just ‐ Spec Prog 130,560         113,286         137,223         6,663          5.1% 23,937        21.1% WASPC Legislative ‐                       44,715            44,715            44,715        #DIV/0!‐                   0.0% State DUI 12,269            18,043            7,439              (4,830)          ‐39.4% (10,604)       ‐58.8% Marijuana Distribution 289,291         221,968         290,083         792             0.3% 68,115        30.7% Liquor Profits 830,938         800,000         821,929         (9,009)          ‐1.1%21,929        2.7% Liquor Excise Tax 757,496         765,797         753,730         (3,766)          ‐0.5% (12,067)       ‐1.6% Fuel Tax 2,011,609      1,901,349      1,990,494      (21,115)       ‐1.1%89,145        4.7% YTD Total 4,101,311$    3,939,884$    4,129,450$    28,138$     0.7%189,566$   4.8% 2023 vs. 2022 2023 vs. Budget 2022 2023 2023 Actual Budget Actual $ % $ % Passport Fees 10,320                    10,000                    9,524                       (796)                        ‐7.7% (476)                        ‐4.8% Court Services 175,939                 152,408                 126,042                 (49,896)                ‐28.4% (26,365)                ‐17.3% General Government Services 277                            ‐                                   149                           (128)                        ‐46.3%149                        100.0% Public Safety Services 713,498                 797,190                 685,146                 (28,351)                ‐4.0% (112,043)             ‐14.1% Development Services 3,139,883            2,200,374             2,647,542            (492,341)             ‐15.7%447,168              20.3% Transportation Services 31,645                     ‐                                   54,161                    22,516                 71.2% 54,161                 100.0% Social Services 184,759                 395,858                 370,024                 185,265              100.3%(25,834)                ‐6.5% Recreation/Farmer's Market/Events 1,338,919            1,211,610             1,806,123            467,204              34.9% 594,513              49.1% Interfund Services 4,506,749            6,032,811             5,589,288            1,082,539         24.0%(443,523)             ‐7.4% YTD Total 10,101,988$      10,800,250$       11,287,999$      1,186,012$      11.7% 487,750$           4.5% Annual Total 10,101,988$      10,800,250$        Year to Date through December Charges for Services by Type Revenue 2023 vs. 2022 2023 vs. Budget Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 5 of 36     FINES AND PENALTIES        Photo Enforcement Program – The decrease from prior year is primarily due to a large uptick in revenue in 2022 resulting  from the city’s new collection agency as well as an increased dismissal rate in 2023.    MISCELLANEOUS REVENUES        Interest and Other Investment Earnings – Investment earnings have varied over the past couple of years as the market has  seen uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds  rate, and we may continue to see a rise in investment earnings as this remains at an elevated level. Investments within the  Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate  as it decreases or increases; the city holds roughly 52% of the total cash and investments for the city in the LGIP.     Rents, Leases, and Concessions – The increase from prior year is due to higher‐than‐expected parking garage monthly rental  fees ($59K), cell lease collections ($39K), and senior center and community center facility rentals ($107K) as these remained  in limited usage in the beginning of 2022.   The amount over the budget is primarily due cell leases ($32K), and community  center and aquatic facility rentals ($145K), and Pavilion leases ($21K).    Contributions/Donations – The increase from prior year and budget is due to recording the Sunset Lane latecomers  assessment from ordinance 5961.    Other – The increase from prior year is due to a court settlement judgement ($158K).  The amount over budget is primarily  due to higher than anticipated utility late penalties ($71K), and court settlement ($158K).            OTHER FINANCING SOURCES    2022 2023 2023 Actual Budget Actual $ % $ % Civil Penalties 264,383$              282,000$              227,945$              (36,437)$             ‐13.8% (54,055)$             ‐19.2% Photo Enforcement Program 3,679,876            3,242,608             3,332,719            (347,157)             ‐9.4%90,111                 2.8% Criminal Traffic Misdemeanor Fines 29,079                    41,000                    21,975                    (7,104)                   ‐24.4% (19,025)                ‐46.4% Criminal Non‐Traffic Fines 3,953                       6,500                       2,943                       (1,010)                   ‐25.6% (3,557)                   ‐54.7% Criminal Costs 29,939                    34,360                    23,057                    (6,883)                   ‐23.0% (11,303)                ‐32.9% Non‐Court Fines, Forfeitures and Penalties 134,975                 95,582                    155,259                 20,284                 15.0% 59,677                 62.4% YTD Total 4,142,205$         3,702,050$          3,763,898$         (378,307)$          ‐9.1%61,848$              1.7% Annual Total 4,142,205$         3,702,050$           Fines and Penalties by Type Revenue 2023 vs. 2022 2023 vs. Budget Year to Date through December 2022 2023 2023 Actual Budget Actual $ % $ % Interest and Other Investment Earnings 1,063,311$         1,950,000$          3,584,163$         2,520,852$      237.1% 1,634,163$      83.8% Rents, Leases, and Concessions 1,422,416            1,413,925             1,628,033            205,617              14.5% 214,108              15.1% Contributions/Donations from Private Sources 345,480                 284,088                 592,902                 247,422              71.6% 308,814              108.7% Other 347,063                 198,646                 501,342                 154,279              44.5% 302,696              152.4% YTD Total 3,178,270$         3,846,659$          6,306,440$         3,128,170$      98.4% 2,459,781$      63.9% Annual Total 3,178,270$         3,846,659$           Year to Date through December Revenue 2023 vs. 2022 2023 vs. Budget Miscellaneous by Type Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 6 of 36       Transfers from Other Funds – The decrease from prior year is primarily due to a one‐time transfer into the general fund from  the Family First capital fund in 2022.    Prior Period Adjustment – The decrease from prior year is due to a 2022 having a prior period adjustment for admission taxes  owed to the general fund from the golf course, and an interest correction between surface water and the general fund.     GENERAL FUND EXPENDITURES    The following tables summarize expenditures by category for each department within the General Fund.         Personnel – Personnel costs are budgeted at 100% of the position cost each year resulting in a budget variance if positions  remain open for any part of the year. The increase in personnel costs over prior year is due to filling positions that were  previously held vacant in 2022, newly approved positions, and cost of living adjustments. Personnel costs under budget is  due to open positions; there are currently 43 vacancies as of December 31st.    Supplies – The increase in supplies from prior year is largely due to higher prices from inflation and overall larger need due  to added personnel. Supply budgets were not increased for inflation, with the sharp increase in costs, budget will need to be  adjusted in future years.     Contracted Services ‐ The increase in contracted services over prior year largely relate to increases in Valley  Communications monthly fees, encampment cleanup, increase in training due to new staff and projects related to grant  funded surveys and sustainability studies. The amount under the year‐to‐date budget relates to unspent human services  funding, unspent grant funding, and general fund reserves.     Capital Outlay – The increase from prior year is primarily due to work on Downtown Wayfinding and Streetscape projects.  The amount under budget is primarily due to ongoing or upcoming projects in Community and Economic Development. This  budget savings is partially offset with Parks, Public Works, and Police capital purchases of machinery such as drones, and  parks maintenance equipment.    Debt Service – The decrease from prior year is due to the issuance of an interfund loan from the general fund to the  Maplewood golf course to fund the purchase of golf carts in 2022, a one‐time activity.    Internal Services – The increase from prior year primarily relates to increased costs for insurance and facilities  maintenance.   2022 2023 2023 Actual Budget Actual $ % $ % Transfers from Other Funds 3,054,187$            1,952,269$         1,868,479$         (1,185,708)         ‐38.8% (83,790)            ‐4.3% Prior Period Adjustment (3,437,067)              ‐                             ‐                            3,437,067          0.0%‐                        N/A Interfund Loan Payment Received 38,514                    46,216                 44,535                 6,021                  15.6%(1,681)               ‐3.6% Insurance Recoveries 262,113                   ‐                            23,142                 (238,971)             ‐91.2%23,142             100.0% Sale of Capital Assets 2,000                       ‐                            840                      (1,160)                 ‐58.0%840                  100.0% YTD Total (80,253)$                1,998,485$         1,936,996$         2,017,249$       ‐2513.6% (61,489)$          ‐3.1% Annual Total (80,253)$                1,998,485$          Revenue 2023 vs. 2022 2023 vs. Budget Year to Date through December Other Financing Sources by Type General Fund Summary of Uses 2022 Year to Date through December YTD Actual YTD Budget YTD Actual $%$% Personnel 67,280,066$     78,713,501$          72,543,619$       (5,263,553)$       ‐7.8% 6,169,882$         7.8% Supplies 1,987,372           1,931,577                2,254,786             (267,414)               ‐13.5%(323,209)               ‐16.7% Contracted Services 22,499,188        29,028,265             23,384,508          (885,320)               ‐3.9% 5,643,757            19.4% Capital Outlay 122,019                530,523                    339,474                  (217,455)               ‐178.2% 191,049                 36.0% Debt Service 225,309                 ‐                                 ‐                              225,309                100.0%‐                             0.0% Internal Services 21,140,231        20,490,735             20,490,735          649,496                3.1%‐                             0.0% Transfers Out 16,858,938        13,863,014             13,680,110          3,178,828            18.9% 182,904                 1.3% Total Expenditures 130,113,123     144,557,615          132,693,232       (2,580,109)           ‐2.0% 11,864,383         8.2% Annual Total 130,113,123     144,557,615           2023 2023 vs. 2022 2023 vs. Budget Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 7 of 36     Transfers Out – The decrease from prior year is due to transfers approved for allocating ARPA related funds to projects  including Axon Body Cameras, Broadband Wi‐Fi upgrades and City Hall Remodel. The amount under budget is due to only  transferring the required amounts to the debt service fund for 2023.  Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 8 of 36   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.        Investment Earnings – Investment earnings have varied over the past couple of years as the market has seen uncertainty  with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate, and we may  continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government Investment Pool  (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city  holds roughly 52% of the total cash and investments for the city in the LGIP.     Principal, Interest and Transfers In – The increase from prior year is due to a one‐time payment in 2023 for payoff of the  Fire District 40 debt. This debt was paid off early as the fire impact mitigation fund held sufficient resources to pay the debt  in full. This also resulted in a decrease in interest due to savings for additional payments that were scheduled to be made in  2023.                         2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 44,705$                39,170$                  38,319$         (6,386)$         (851)$              97.83% Charges for services ‐                               ‐                                 ‐                        ‐                      ‐                        N/A Interdepartmental services ‐                               ‐                                 ‐                        ‐                      ‐                        N/A Fines and penalties ‐                               ‐                                 ‐                        ‐                      ‐                        N/A Contributions ‐                               ‐                                 ‐                        ‐                      ‐                        N/A Investment Earnings 51,743                   140,000                  159,328         107,585        19,328            113.81% TOTAL REVENUES 96,448                   179,170                  197,647         101,199        18,477            110.31% EXPENDITURES: Principal 3,069,547             4,453,189               4,453,188      (1,383,641)   1                       100.00% Interest 1,271,720             1,112,501               1,110,801      160,919        1,700               99.85% TOTAL EXPENDITURES 4,341,267             5,565,690               5,563,989      (1,222,722)   1,701               99.97% Transfers In 4,289,359             5,715,852               5,515,851      1,226,492    (200,001)         96.50% NET TRANSFERS 4,289,359             5,715,852               5,515,851      1,226,492    (200,001)         96.50% CHANGE IN FUND BALANCE 44,540                   329,332                  149,509         104,969        (179,823)         45.40% BEGINNING FUND BALANCE, Jan 1 5,218,125             5,262,665               5,262,665      44,540           ‐                        100.00% ENDING FUND BALANCE, Dec 31 5,262,665$           5,591,997$            5,412,174$   149,509$     (179,823)$      96.78% Debt Service Reserve 2,717,575             2,717,575               2,717,575       AVAILABLE FUND BALANCE 2,545,090$           2,874,422$            2,694,599$    VARIANCE GENERAL GOVERNMENTAL MISCELLANEOUS DEBT Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 9 of 36   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. Detailed explanations will be provided for material  differences between prior year and or budgeted amounts.      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 of Renton, as authorized under RCW 67.28.180. The Lodging Tax Advisory Committee (LTAC)  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.        Taxes – The amount over the annual budget is due to better‐than‐expected economic recovery for lodging taxes.     Contracted Services – The decrease from prior year is due to LTAC funding which had an event cancel and another not fully  utilize their allocation.                                            2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 519,434$              434,000$                540,030$              20,596$                106,030$              124.43% Contributions 25,000                   25,000                     15,000                   (10,000)                 (10,000)                 60.00% Investment Earnings 9,297                     22,000                     29,290                   19,993                   7,290                     133.14% TOTAL REVENUES 553,731                481,000                   584,320                30,589                   103,320                121.48% EXPENDITURES: Contracted Services 529,768                449,616                   377,433                152,335                72,183                   83.95% TOTAL EXPENDITURES 529,768                449,616                   377,433                152,335                72,183                   83.95% Transfers Out (40,000)                 (30,000)                    (30,000)                 10,000                    ‐                              N/A NET TRANSFERS (40,000)                 (30,000)                    (30,000)                 10,000                    ‐                              N/A CHANGE IN FUND BALANCE (16,037)                 1,384                       176,887                192,924                175,503                12780.85% BEGINNING FUND BALANCE, Jan 1 728,421                712,384                   712,384                (16,037)                  ‐                              97.80% ENDING FUND BALANCE, Dec 31 712,384$              713,768$                889,271$              176,887$              175,503$              124.83% VARIANCE FAVORABLE (UNFAVORABLE) HOTEL/MOTEL Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 10 of 36   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.        Supplies – The decrease in supplies expenditures from prior year is due to a majority of the equipment for the council  chambers audit video equipment being purchased in 2022.      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 and use tax is restricted for housing and related services, in accordance with RCW  82.14.530.         Taxes – Taxes have exceeded prior year and are currently on track to exceed the annual budget. This tax revenue will increase  or decrease with the economy as it is a direct sales tax upon consumer purchases.    2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 62,731$                57,674$                    53,566$                (9,165)$                 (4,108)$                 92.88% Investment Earnings 6,014                      ‐                                  13,921                   7,907                     13,921                   N/A TOTAL REVENUES 68,745                   57,674                      67,487                   (1,258)                    9,813                     117.01% EXPENDITURES: Supplies 159,574                50,584                      46,681                   (112,893)               3,903                     92.28% Contracted Services 187,269                155,502                    115,653                (71,616)                 39,849                   74.37% Capital Outlay ‐                              49,500                       ‐                               ‐                              49,500                   0.00% TOTAL EXPENDITURES 346,843                255,586                    162,334                (184,509)               93,252                   63.51% Transfers In ‐                               ‐                                   ‐                               ‐                               ‐                              N/A NET TRANSFERS ‐                               ‐                                   ‐                               ‐                               ‐                              N/A CHANGE IN FUND BALANCE (278,098)               (197,912)                   (94,847)                 183,251                103,065                N/A BEGINNING FUND BALANCE, Jan 1 731,245                453,147                    453,147                (278,098)                ‐                              100.00% ENDING FUND BALANCE, Dec 31 453,147$              255,235$                  358,300$              (94,847)$               103,065$              140.38% CABLE COMMUNICATIONS VARIANCE FAVORABLE (UNFAVORABLE) 2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 4,387,866$           4,000,000$              4,472,859$           84,993$                472,859$              111.82% Investment Earnings 50,794                    ‐                                  278,598                227,804                278,598                N/A TOTAL REVENUES 4,438,660             4,000,000                 4,751,457             312,797                751,457                118.79% EXPENDITURES: Contracted Services 1,500,000             260,000                    50,000                   (1,450,000)            210,000                19.23% TOTAL EXPENDITURES 1,500,000             260,000                    50,000                   (1,450,000)            210,000                19.23% Transfers In ‐                               ‐                                   ‐                               ‐                               ‐                              N/A Transfers Out ‐                               ‐                                   ‐                               ‐                               ‐                              N/A NET TRANSFERS ‐                               ‐                                   ‐                               ‐                               ‐                              N/A CHANGE IN FUND BALANCE 2,938,660             3,740,000                 4,701,457             1,762,797             961,457                125.71% BEGINNING FUND BALANCE, Jan 1 3,171,729             6,110,390                 6,110,390             2,938,661              ‐                              100.00% ENDING FUND BALANCE, Dec 31 6,110,390$           9,850,390$              10,811,847$        4,701,457$           961,457$              109.76% HOUSING & SUPPORTIVE SERVICES VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 11 of 36   Investment Earnings – Investment earnings have varied over the past couple of years as the market has seen uncertainty  with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate, and we may  continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government Investment Pool  (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city  holds roughly 52% of the total cash and investments for the city in the LGIP.     Contracted Services – The decrease from prior year is due to a large payment made to the Renton Housing Authority to  develop affordable housing as part of the Sunset Gardens project. The amount under the 2023 budget is unspent allocations  for mental health navigator program.    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 proceeds of selling wetlands credits will be used to fund the ongoing  maintenance of the wetland in perpetuity.             2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental ‐$                            4,011$                      4,011$                   4,011$                    ‐$                            100.00% Investment Earnings 4,598                     10,515                      20,379                   15,781                   9,864                     193.81% Sale of credits 230,300                247,852                   247,852                17,552                    ‐                              100.00% TOTAL REVENUES 234,898                262,378                   272,242                37,344                   9,864                     103.76% EXPENDITURES: Personnel 6,184                      ‐                                 7,488                     (1,304)                    (7,488)                    N/A Contracted Services 8,411                     40,000                      8,263                     148                        31,737                   20.66% TOTAL EXPENDITURES 14,595                   40,000                      15,751                   (1,156)                    24,249                   39.38% NET TRANSFERS ‐                               ‐                                  ‐                               ‐                               ‐                              N/A CHANGE IN FUND BALANCE 220,303                222,378                   256,491                36,188                   34,113                   115.34% BEGINNING FUND BALANCE, Jan 1 234,325                454,628                   454,628                220,303                 ‐                              100.00% ENDING FUND BALANCE, Dec 31 454,628$              677,006$                 711,119$              256,491$              34,113$                105.04% SPRINGBROOK WETLANDS VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 12 of 36   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.        Contributions – The increase from prior year and budget is due to higher than anticipated seizures including a large case in  December ($324K).    Supplies and Contracted Services – The increase from prior year is primarily due to purchases in small tools and higher  expenditures in travels and trainings.      Capital Outlay – The decrease in capital outlay from prior year is due to several large one‐time capital purchases in 2022  including a 3D mapping system and a CCTV trailer.     Transfers Out – The decrease in transfers out is due to a large transfer in 2022 to pay for new body camera equipment.      2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Contributions 154,526$              106,159$                 492,376$              337,850$              386,217$              463.81% Investment Earnings 5,903                      ‐                                 12,735                   6,832                     12,735                   N/A TOTAL REVENUES 160,429                106,159                   505,111                344,682                398,952                475.81% EXPENDITURES: Supplies ‐                              445,973                   36,198                   36,198                   409,775                8.12% Contracted Services 549                         ‐                                 47,665                   47,116                   (47,665)                 N/A Capital Outlay 151,035                 ‐                                 29,133                   (121,902)               (29,133)                 N/A TOTAL EXPENDITURES 151,584                445,973                   112,996                (38,588)                 332,977                25.34% Transfers Out 300,556                 ‐                                  ‐                              (300,556)                ‐                              N/A NET TRANSFERS (300,556)                ‐                                  ‐                              300,556                 ‐                              N/A CHANGE IN FUND BALANCE (291,711)               (339,814)                  392,115                683,826                731,929                N/A BEGINNING FUND BALANCE, Jan 1 631,525                339,814                   339,814                (291,711)                ‐                              100.00% ENDING FUND BALANCE, Dec 31 339,814$               ‐$                               731,929$              392,115$              731,929$              N/A POLICE SEIZURE VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 13 of 36   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.        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 and Contracted Services – The decrease is primarily due to decreased impact fees as large one‐time  project payments were received in 2022 for the Solera project. These fees collected are subsequently transferred to the  Renton Regional Fire Authority to fund capital projects.  Transfers Out – The increase in transfer out represents the final debt payoff approved for the Fire Station 13  intergovernmental debt with King County.   2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Fines and penalties 14,524$                 ‐$                               971$                      (13,553)$               971$                      N/A Investment Earnings 1,809                      ‐                                 5,628                     3,819                     5,628                     N/A TOTAL REVENUES 16,333                    ‐                                 6,599                     (9,734)                    6,599                     N/A EXPENDITURES: Supplies ‐                               ‐                                 2,053                     2,053                     (2,053)                    N/A Contracted Services 44                           172,804                   7,773                     7,729                     165,031                4.50% Capital Outlay 18,311                    ‐                                  ‐                              (18,311)                  ‐                              N/A TOTAL EXPENDITURES 18,355                   172,804                   9,826                     (8,529)                    162,978                5.69% NET TRANSFERS ‐                               ‐                                  ‐                               ‐                               ‐                              N/A CHANGE IN FUND BALANCE (2,022)                    (172,804)                  (3,227)                    (1,205)                    169,577                N/A BEGINNING FUND BALANCE, Jan 1 174,826                172,804                   172,804                (2,022)                     ‐                              100.00% ENDING FUND BALANCE, Dec 31 172,804$               ‐$                               169,577$              (3,227)$                 169,577$              N/A POLICE CSAM SEIZURE VARIANCE FAVORABLE (UNFAVORABLE) 2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 1,232,198$           200,000$                40,259$                (1,191,939)$         (159,741)$             20.13% Investment Earnings 31,890                   31,000                     30,951                   (939)                       (49)                         99.84% TOTAL REVENUES 1,264,088             231,000                  71,210                   (1,192,878)            (159,790)               30.83% EXPENDITURES: Contracted Services ‐                              359,810                  200,021                200,021                159,788                55.59% TOTAL EXPENDITURES ‐                              359,810                  200,021                200,021                159,789                55.59% Transfers Out (500,634)               (2,595,377)              (2,595,377)            (2,094,743)            0                             100.00% NET TRANSFERS (500,634)               (2,595,377)              (2,595,377)            2,094,743              ‐                              100.00% CHANGE IN FUND BALANCE 763,454                (2,724,187)              (2,724,187)            (3,487,641)             ‐                              100.00% BEGINNING FUND BALANCE, Jan 1 1,960,733             2,724,187               2,724,187             763,454                 ‐                              100.00% ENDING FUND BALANCE, Dec 31 2,724,187$            ‐$                               ‐$                            (2,724,187)$          ‐$                            N/A FIRE IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 14 of 36     School District Impact Mitigation  This fund accounts for school district 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 Kent, Issaquah, or Renton School District for use on qualifying  capital projects.       Charges for Services and Contracted Services – The decrease is primarily due to decreased impact fees as large one‐time  project payments were received in 2022 for the Solera project. These fees collected are subsequently transferred to the  respective school district to fund capital projects.       2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 4,088,842$           600,000$                 185,062$              (3,903,780)$         (414,938)$             30.84% Investment Earnings 3,941                      ‐                                 571                        (3,370)                    571                        N/A TOTAL REVENUES 4,092,783             600,000                    185,633                (3,907,150)            (414,367)               30.94% EXPENDITURES: Contracted Services 4,092,795             600,000                    185,600                (3,907,196)            414,400                30.93% TOTAL EXPENDITURES 4,092,795             600,000                    185,600                (3,907,196)            414,400                30.93% NET TRANSFERS ‐                               ‐                                  ‐                               ‐                               ‐                              N/A CHANGE IN FUND BALANCE (12)                          ‐                                 33                           45                           33                           N/A BEGINNING FUND BALANCE, Jan 1 12                            ‐                                  ‐                              (12)                          ‐                              N/A ENDING FUND BALANCE, Dec 31 ‐$                             ‐$                               33$                        33$                        33$                        N/A SCHOOL DISTRICT IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 15 of 36   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. Detailed explanations will be provided for material differences between prior year and or budgeted  amounts.      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 decrease in charges for services is primarily due to decreased impact fees as large one‐time project  payments were received in 2022 for the King County administration building and Solera projects.     Transfers Out – The budgeted transfers out represent transfers to parks capital projects including May Creek Park, Miser  Property Acquisition, Cleveland Richardson, and Talbot Sport Courts.    2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 1,492,502$           86,500$                  120,419$              (1,372,083)$         33,919$                139.21% Investment Earnings 50,090                   45,672                     55,524                   5,434                     9,852                     121.57% TOTAL REVENUES 1,542,592             132,172                  175,943                (1,366,648)            43,771                   133.12% EXPENDITURES: TOTAL EXPENDITURES ‐                               ‐                                 ‐                               ‐                               ‐                              N/A Transfers In ‐                               ‐                                 ‐                               ‐                               ‐                              N/A Transfers Out (3,380,595)            (1,090,000)              (1,090,000)            2,290,595              ‐                              100.00% NET TRANSFERS (3,380,595)            (1,090,000)              (1,090,000)            (2,290,595)             ‐                              100.00% CHANGE IN FUND BALANCE (1,838,003)            (957,828)                 (914,057)               923,946                43,771                   95.43% BEGINNING FUND BALANCE, Jan 1 3,433,393             1,595,389               1,595,389             (1,838,004)             ‐                              100.00% ENDING FUND BALANCE, Dec 31 1,595,389$           637,561$                681,332$              (914,058)$             43,771$                106.87% COMMUNITY SERVICES IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 16 of 36   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 decrease in charges for services is primarily due to decreased impact fees as large one‐time project  payments were received in 2022 for the King County administration building and Solera projects.     Investment Earnings – Investment earnings have varied over the past couple of years as the market has seen uncertainty  with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate, and we may  continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government Investment Pool  (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city  holds roughly 52% of the total cash and investments for the city in the LGIP.     Transfers Out – The budgeted transfers out represent transfers of transportation mitigation funds to capital projects including  Park Avenue Extension and Rainier Phase 4.      2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 8,505,438$           511,153$                 828,414$              (7,677,024)$         317,261$              162.07% Investment Earnings 130,793                150,082                    245,741                114,948                95,659                   163.74% TOTAL REVENUES 8,636,231             661,235                    1,074,155             (7,562,076)            412,920                162.45% EXPENDITURES: TOTAL EXPENDITURES ‐                               ‐                                  ‐                               ‐                               ‐                              N/A Transfers Out (6,831,255)            (5,817,897)               (5,817,897)            1,013,358             (0)                            100.00% NET TRANSFERS (6,831,255)            (5,817,897)               (5,817,897)            1,013,358             (11,635,794)         100.00% CHANGE IN FUND BALANCE 1,804,976             (5,156,662)               (4,743,742)            (6,548,718)            412,920                N/A BEGINNING FUND BALANCE, Jan 1 5,159,035             6,964,011                6,964,011             1,804,976              ‐                              100.00% ENDING FUND BALANCE, Dec 31 6,964,011$           1,807,349$              2,220,269$           (4,743,742)$         412,920$              122.85% TRANSPORTATION IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 17 of 36   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.        Taxes – The decreases in taxes from prior year are due to decreased real estate transactions which were at historically high  levels in 2022. As interest rates rise or remain at elevated levels, we may continue to see some impact on real estate excise  taxes.     Transfers Out – The budgeted transfers out represent transfers of REET funds to capital projects including Family First  Community Center, and Park Avenue Maintenance Facility.    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.        2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 4,046,473$           2,000,000$              2,290,899$           (1,755,574)$         290,899$              114.54% Investment Earnings 75,117                   96,157                      139,543                64,426                   43,386                   145.12% TOTAL REVENUES 4,121,590             2,096,157                2,430,442             (1,691,148)            334,285                115.95% EXPENDITURES: TOTAL EXPENDITURES ‐                               ‐                                  ‐                               ‐                               ‐                              N/A Transfers In ‐                               ‐                                  ‐                               ‐                               ‐                              N/A Transfers Out (5,579,996)            (3,715,000)               (3,715,000)            1,864,996              ‐                              100.00% NET TRANSFERS (5,579,996)            (3,715,000)               (3,715,000)            (1,864,996)             ‐                              100.00% CHANGE IN FUND BALANCE (1,458,406)            (1,618,843)               (1,284,558)            173,848                334,285                79.35% BEGINNING FUND BALANCE, Jan 1 4,508,117             3,049,711                3,049,711             (1,458,406)             ‐                              100.00% ENDING FUND BALANCE, Dec 31 3,049,711$           1,430,868$              1,765,153$           (1,284,558)$         334,285$              123.36% REET 1 VARIANCE FAVORABLE (UNFAVORABLE) 2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 4,046,472$           2,000,000$              2,290,899$           (1,755,573)$         290,899$              114.54% Investment Earnings 121,461                179,126                    238,268                116,807                59,142                   133.02% TOTAL REVENUES 4,167,933             2,179,126                2,529,167             (1,638,766)            350,041                116.06% EXPENDITURES: TOTAL EXPENDITURES ‐                               ‐                                  ‐                               ‐                               ‐                              N/A Transfers In ‐                               ‐                                  ‐                               ‐                               ‐                              N/A Transfers Out (6,921,118)            (5,403,625)               (5,403,625)            1,517,493              ‐                              100.00% NET TRANSFERS (6,921,118)            (5,403,625)               (5,403,625)            (1,517,493)             ‐                              100.00% CHANGE IN FUND BALANCE (2,753,185)            (3,224,499)               (2,874,458)            (121,273)               350,041                89.14% BEGINNING FUND BALANCE, Jan 1 8,773,145             6,019,961                6,019,961             (2,753,184)             ‐                              100.00% ENDING FUND BALANCE, Dec 31 6,019,961$           2,795,462$              3,145,503$           (2,874,457)$         350,041$              112.52% REET 2 VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 18 of 36   Taxes – The decreases in taxes from prior year are due to decreased real estate transactions which were at historically high  levels in 2022. As interest rates rise or remain at elevated levels, we may continue to see some impact on real estate excise  taxes.    Investment Earnings – Investment earnings have varied over the past couple of years as the market has seen uncertainty  with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate, and we may  continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government Investment Pool  (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city  holds roughly 52% of the total cash and investments for the city in the LGIP.     Transfers Out ‐ The budgeted transfers out represent transfers of REET funds to provide funding for Debt Service,  Oakesdale Avenue Project, Sidewalk Rehabilitation Projects, Houser Way Bridge, and SW 43rd Rehabilitation.     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/intergovernmental – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is  budgeted at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires. The increase from prior year is  largely due to receiving grant funds for work performed on the Coulon North Water Walk project ($1.3M).     Contributions – The decrease from prior year largely relates to one time funding received for the Phillip Arnold Park project  in 2022.     Investment Earnings – Investment earnings have varied over the past couple of years as the market has seen uncertainty  with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate, and we may  continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government Investment Pool  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 591,912$              9,672,235$            2,752,568$           2,160,656$           (6,919,667)$         28.46% Charges for services 56,449                    ‐                               30,670                   (25,779)                 30,670                   N/A Sale of general fixed assets ‐                               ‐                                ‐                               ‐                               ‐                              N/A Fines and penalties ‐                               ‐                                ‐                               ‐                               ‐                              N/A Contributions 842,454                 ‐                               2,755                     (839,699)               2,755                     N/A Investment Earnings 186,230                612,105                 580,920                394,690                (31,185)                 94.91% TOTAL REVENUES 1,677,045             10,284,340            3,366,913             1,689,868             (6,917,427)            32.74% EXPENDITURES: Personnel 429,623                44,228                    44,228                   (385,395)                ‐                              100.00% Contracted Services 391,771                9,127,657              751,227                359,456                8,376,430             8.23% Capital Outlay 9,273,108             31,941,978            13,708,201           4,435,093             18,233,777           42.92% TOTAL EXPENDITURES 10,094,502           41,113,863            14,503,656           4,409,154             26,610,207           35.28% Transfers In 16,264,057           8,545,379              8,545,379             (7,718,677)            0                             100.00% Transfers Out (0)                            (100,000)                (100,000)               (100,000)                ‐                              N/A NET TRANSFERS 16,264,057           8,445,379              8,445,379             (7,618,677)             ‐                              100.00% CHANGE IN FUND BALANCE 7,846,600             (22,384,144)          (2,691,364)            (10,537,964)         19,692,780           12.02% BEGINNING FUND BALANCE, Jan 1 16,824,783           24,671,384            24,671,384           7,846,601              ‐                              100.00% ENDING FUND BALANCE, Dec 31 24,671,384$        2,287,240$            21,980,020$        (2,691,363)$         19,692,780$        960.98% MUNICIPAL FACILITIES CIP VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 19 of 36   (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city  holds roughly 52% of the total cash and investments for the city in the LGIP.     Personnel – Decrease in personnel is due to budgeted anticipation of the bond projects being completed by 2022.     Contracted Services – Contracted services are largely project driven and are dependent on the project timeline. The large  amount budgeted and unspent in 2023 is primarily related to the Pavilion remodel project, 7th floor remodel, and City Hall  Lobby Remodel. The increase from prior year is for 7th floor remodel expenditures through 2023 totalling $551K.     Capital Outlay – Capital outlay fluctuates greatly with capital project schedules and contractor’s billings. A significant  number of projects began in late 2022. The largest YTD expenditures include Coulon North Water Walk ($3.5M), Kiwanis  Park ($2M), Philip Arnold Park ($4.8M), Coulon Trestle Bridge ($1M), and the Miser Property Acquisition ($1M). The  remaining budget largely relates to unspent project funds for ESCO project, Park Avenue maintenance facility, Henry Moses  Aquatic Center remodel, May Creek trail, and Senior Center repairs.    Transfers In – The budgeted transfers in include funding for Senior Center improvements, and Park Avenue maintenance  facility.    Capital Improvement Fund  This fund accounts for the city’s transportation capital projects. Capital projects are budgeted in their entirety at the inception  of the project; funds are spent as the project progresses and may span over multiple years.          Grants/Intergovernmental– Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is  budgeted at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires. The decrease from prior year is  primarily due to four large projects receiving grant funding in 2022 including Rainier Phase 4, Duvall Avenue, Lake  Washington Loop Trail (primarily completed in 2022), and Williams & Wells totalling $8.8M through 2022.       2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 9,772,886$           31,622,423$        9,377,648$           (395,238)$             (22,244,775)$       29.66% Charges for services ‐                              90,225                   119,413                119,413                29,188                   132.35% Fines and penalties ‐                               ‐                               ‐                               ‐                               ‐                              N/A Contributions ‐                              2,725,180             519,012                519,012                (2,206,168)            19.05% Investment Earnings 77,536                   308,564                379,842                302,306                71,278                   123.10% TOTAL REVENUES 9,850,422             34,746,392           10,395,915           545,493                (24,350,477)         29.92% EXPENDITURES: Personnel 42,858                   26,080                   38,701                   (4,157)                    (12,621)                 148.39% Supplies 108,006                30,000                   64,025                   (43,981)                 (34,025)                 213.42% Contracted Services 288,293                726,568                249,895                (38,398)                 476,673                34.39% Capital Outlay 17,315,447           56,140,386           18,312,049           996,602                37,828,337           32.62% Internal Services 56,000                   56,000                   56,000                    ‐                               ‐                              100.00% TOTAL EXPENDITURES 17,810,604           56,979,034           18,720,670           910,066                38,258,364           32.86% Transfers In 9,714,705             11,044,897           11,044,897           1,330,192             0                             100.00% Transfers Out (61,400)                  ‐                               ‐                              61,400                    ‐                              N/A NET TRANSFERS 9,653,305             11,044,897           11,044,897           1,268,792              ‐                              100.00% CHANGE IN FUND BALANCE 1,693,123             (11,187,745)         2,720,142             1,027,019             13,907,887           N/A BEGINNING FUND BALANCE, Jan 1 10,868,853           12,561,975           12,561,975           1,693,122              ‐                              100.00% ENDING FUND BALANCE, Dec 31 12,561,975$        1,374,230$           15,282,117$        2,720,141$           13,907,887$        1112.05% CAPITAL IMPROVEMENT VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 20 of 36   Charges of Services – The increase from prior year primarily relates to sidewalk/street mitigation fee in lieu payments which  were historically recorded in the transportation impact mitigation fund. These revenues were separated from the  transportation impact mitigation fund as there are separate restrictions on these two revenue streams and this change will  streamline the accounting.    Contributions – The amount over prior year is due to the contribution from a WSDOT contractor for the Gateway  Enhancement Project received in 2023. The amount under budget is primarily from the external capital contributions for  the Rainier Phase 4 project.    Investment Earnings – Increase over prior year is primarily due to investment earnings. Investment earnings have varied over  the past couple of years as the market has seen uncertainty with the pandemic and now concerns of recession. This revenue  is highly influenced by the federal funds rate, and we may continue to see a rise in investment earnings as this is adjusted.  Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely track with  the federal funds rate as it decreases or increases; the city holds roughly 52% of the total cash and investments for the city  in the LGIP.    Capital Outlay – The increase from prior year is primarily due to the progress made in 2023 on the Rainier Avenue Phase 4  project, total expenditures in 2023 were $10.5M.     Transfers In – The amount over last year relates to multiple large transfers including $2M for sidewalk rehabilitation  projects, $2M for Rainier Avenue Phase 4, and $2.7M for the Park Avenue extension project.    Family First Center Fund  This fund is used to account for the construction of the new Family First Center. Funds accumulated for the construction of  the Family First Center are maintained in the fund balance until such time that Council authorizes their use through the  approval of contracts and additional project budget is established through the budget adjustment process.        Grants/Intergovernmental – The decrease from year is because this project completed a significant portion of the  construction work last year and recognized most of the grant revenue in 2022.     Contributions – The decrease from last year is due to timing of contributions of which many were stipulated on completing  different phases of the project. In 2023, the majority of the remaining Healthpoint contribution was received the remaining  budget is for project changes requested by the external parties during construction.     2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 1,510,000$           520,000$              520,000$              (990,000)$              ‐$                            100.00% Contributions 5,025,344             3,602,152             3,042,887             (1,982,457)            (559,265)               84.47% Investment Earnings 79,124                   64,521                   95,139                   16,015                   30,618                   147.45% TOTAL REVENUES 6,614,468             4,186,673             3,658,026             (2,956,442)            (528,647)               87.37% EXPENDITURES: Contracted Services 42,466                    ‐                              3,939                     (38,528)                 (3,939)                    N/A Capital Outlay 12,015,609           2,833,827             2,905,946             (9,109,663)            (72,119)                 102.54% TOTAL EXPENDITURES 12,058,075           2,833,827             2,909,885             (9,148,191)            (76,058)                 102.68% Transfers In 3,000,000             1,000,000             1,000,000             (2,000,000)             ‐                              100.00% Transfers Out (3,000,033)            (1,000,000)            (900,000)               2,100,033             (100,000)               N/A NET TRANSFERS (33)                          ‐                              100,000                (4,100,033)            100,000                N/A CHANGE IN FUND BALANCE (5,443,640)            1,352,846             848,141                6,291,781             (504,705)               62.69% BEGINNING FUND BALANCE, Jan 1 8,238,935             2,795,295             2,795,295             (5,443,640)             ‐                              100.00% ENDING FUND BALANCE, Dec 31 2,795,295$           4,148,141$           3,643,436$           848,141$              (504,705)$             87.83% FAMILY FIRST CENTER VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 21 of 36   Capital Outlay – Decrease from prior year is due to the project timeline; the project is nearing completion and opened in  June to the public. Work will continue to be ongoing as smaller items on the project continue to be completed.    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. Detailed explanations will be provided for material differences  between prior year and or budgeted amounts.      Airport Fund  This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and  maintenance of the Renton Municipal Airport.           Grants/intergovernmental – The increase over prior year and under budget primarily relates to the grant awarded for the  Taxiway Alpha project which began in 2023, only 33% of the $1.6M awarded was utilized in 2023.    Charges for Services – The increase over prior year is largely due to a large agreement finalized for lease of airport space.  This agreement included retroactive payment for prior year activity contributing to the increase as well as trend over budget  for 2023.   2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 57,529$           1,832,710$            695,814$         638,285$         (1,136,896)$    37.97% Charges for services 2,956,190        5,256,093               5,098,680        2,142,490        (157,413)          97.01% Interest and other misc 160,853           196,891                  346,393           185,540           149,502           175.93% TOTAL REVENUES 3,664,597        7,285,694               6,742,332        3,077,735        (543,362)          92.54% EXPENSES: Personnel 1,095,538        1,488,623               1,111,474        (15,936)            377,149           74.66% Supplies 115,459           47,630                    97,832              17,627              (50,202)            205.40% Contracted Services 728,842           490,874                  657,568           71,274              (166,694)          133.96% Internal Services 371,749           445,696                  436,502           (64,753)            9,194                97.94% TOTAL OPERATING EXPENSES 2,311,588        2,472,823               2,303,376        8,212                169,447           93.15% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 1,353,009        4,812,871               4,438,956        3,085,947        (373,915)          92.23% TOTAL DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY 169,069           8,590,072               1,562,470        (1,393,401)       7,027,602        18.19% TRANSFERS OUT ‐                         (525,339)                 (525,339)          525,339            ‐                         N/A NET TRANSFERS ‐                         (525,339)                 (525,339)          (525,339)           ‐                         N/A CHANGE IN FUND BALANCE 1,183,940        (4,302,540)             2,351,147        1,167,207        6,653,687        N/A BEGINNING FUND BALANCE, Jan 1 7,741,751        8,925,690               8,925,690        1,183,939         ‐                         100.00% ENDING FUND BALANCE, Dec 31 8,925,690$      4,623,150$            11,276,837$   2,351,147$      6,653,687$      243.92% Operating Reserve 216,784           282,282                  282,282            AVAILABLE FUND BALANCE 8,708,906$      4,340,868$            10,994,555$    VARIANCE AIRPORT Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 22 of 36   Interest and Other Misc. – Increase over prior year is primarily due to investment earnings. Investment earnings have varied  over the past couple of years as the market has seen uncertainty with the pandemic and now concerns of recession. This  revenue is highly influenced by the federal funds rate, and we may continue to see a rise in investment earnings as this is  adjusted. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely  track with the federal funds rate as it decreases or increases; the city holds roughly 52% of the total cash and investments for  the city in the LGIP.    Personnel – The amount under budget is primarily related to periodic open positions throughout the year in 2023.    Contracted Services – The amount over budget is primarily due to higher expenditures in capital projects for major facility  maintenance work in gate and perimeter security upgrade as well as work on building apron and parking lot.    Capital Outlay – The increase from prior year is due to work on the airport office rehabilitation and Taxiway Alpha projects  in 2023. The amount under budget is due to several large projects starting in 2023 which are anticipated to continue  throughout the next year including $2M remaining budget for Airport Office Rehabilitation project, and $3M remaining  budget for the Taxiway Alpha project.     Transfers Out – The transfers out for 2023 include $180K to Fleet for purchase of new equipment and $350K to fund the  300 Rainier Demolition project being performed by facilities.        Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 23 of 36   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.         Grants/Intergovernmental – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is budgeted  at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires. The increase from prior year relates  to a reimbursement received early in 2023 for 2022 expenditures $126K.     Charges for Services – The increase from prior year is due to increased rates for 2023 which went up 7.8% from 2022.    Interest and Other Misc. – The amount under budget primarily relates to two local grants $232K which are treated as  contributions.    Contracted Services‐ Contracted services will fluctuate with the charges for services as this line item includes payment to the  city’s garbage service provider and King County dump fees.  The increase from prior year is primarily due to increased charges  related to the fee increase for 2023 of 7.8%.    Internal Services – The increase from prior year is related to internal charges for general fund provided support services in  public works and sustainability division provided to the solid waste enterprise fund.      2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 34,783$           430,990$                165,834$         131,051$         (265,156)$        38.48% Charges for services 23,880,856      25,168,584            24,789,097      908,241           (379,487)          98.49% Interest and other misc 41,326              309,231                  114,103           72,777              (195,128)          36.90% TOTAL REVENUES 23,956,965      25,908,805            25,069,034      1,112,069        (839,771)          96.76% EXPENSES: Personnel 447,475           707,752                  571,674           (124,199)          136,078           80.77% Supplies 9,421                45,301                    33,388              (23,967)            11,913              73.70% Contracted Services 22,582,966      24,919,705            23,909,520      (1,326,554)       1,010,185        95.95% Internal Services 358,155           527,016                  492,825           (134,670)          34,191              93.51% TOTAL OPERATING EXPENSES 23,398,017      26,199,774            25,007,407      (1,609,390)       1,192,367        95.45% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 558,948           (290,969)                 61,627              (497,321)          352,596           N/A TOTAL DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY ‐                          ‐                                 ‐                          ‐                          ‐                         N/A TRANSFERS OUT ‐                         (84,275)                   (84,275)            84,275               ‐                         N/A NET TRANSFERS ‐                         (84,275)                   (84,275)            (84,275)             ‐                         N/A CHANGE IN FUND BALANCE 558,948           (375,244)                 (22,648)            (581,596)          352,596           N/A BEGINNING FUND BALANCE, Jan 1 3,392,243        3,951,191               3,951,191        558,948            ‐                         100.00% ENDING FUND BALANCE, Dec 31 3,951,191$      3,575,947$            3,928,543$      (22,648)$          352,596$         109.86% Operating Reserve 400,000           400,000                  400,000            AVAILABLE FUND BALANCE 3,551,191$      3,175,947$            3,528,543$       SOLID WASTE VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 24 of 36   Golf Course Fund  This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and  maintenance of the Maplewood Golf Course.        Charges for services – The increase from prior year is primarily due to an increase in merchandise sales, green fees  collected, and golf lesson revenues.    Interest and Other Misc. – The increase from prior year is due to recognizing an interfund loan payment of $225K in 2022  for the purchase of the new golf cart fleet.     Personnel – The increase in personnel from prior year is primarily due to cost‐of‐living increases for 2023 which were 4.5%  as well as increased overtime for supplemental staff throughout the summer months.                  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 2,555,063$      2,846,155$            2,989,376$      434,313$         143,221$         105.03% Rents, leases, and misc fees 493,099           527,600                  558,213           65,114              30,613              105.80% Interest and other misc (102,451)          1,370                       73,011              175,462           71,641              5329.27% TOTAL REVENUES 2,945,711        3,375,125               3,620,600        674,889           245,475           107.27% EXPENSES: Personnel 1,660,701        1,787,276               1,807,622        (146,921)          (20,346)            101.14% Supplies 367,210           312,500                  384,055           (16,845)            (71,555)            122.90% Contracted Services 160,127           226,350                  196,456           (36,329)            29,894              86.79% Internal Services 494,078           468,333                  480,978           13,100              (12,645)            102.70% TOTAL OPERATING EXPENSES 2,682,116        2,794,459               2,869,111        (186,995)          (74,652)            102.67% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 263,595           580,666                  751,489           487,894           170,823           129.42% DEBT SERVICE: Principal 36,774              44,535                    44,535              (7,761)                ‐                         100.00% Interest 1,740                1,682                       1,682                58                       ‐                         100.00% TOTAL DEBT SERVICE 38,514              46,217                    46,217              (7,703)                ‐                         100.00% CAPITAL OUTLAY 418,513           733,598                  545,292           (126,779)          188,306           74.33% TRANSFERS IN 852,661           544,700                  544,700           (307,961)           ‐                         100.00% TRANSFERS OUT (272,200)          (429,700)                 (429,700)          157,500            ‐                         N/A NET TRANSFERS 580,461           115,000                  115,000           (465,461)           ‐                         100.00% CHANGE IN FUND BALANCE 387,029           (84,149)                   274,980           (112,049)          359,129           N/A BEGINNING FUND BALANCE, Jan 1 1,222,897        1,609,927               1,609,927        387,030            ‐                         100.00% ENDING FUND BALANCE, Dec 31 1,609,927$      1,525,778$            1,884,907$      274,980$         359,129$         123.54% Operating Reserve 641,500           787,490                  787,490            AVAILABLE FUND BALANCE 968,427$         738,288$                1,097,417$       GOLF COURSE VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 25 of 36   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.      Grants/Intergovernmental – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is budgeted  at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires. The increase from prior year is due  to the Sunset Gardens Department of Commerce Grant ($846K).    Charges for Services – The increase from prior year is due to an overall increased consumption which is 5% higher than prior  year. Water charges tend to see a significant increase during the summer months as typically irrigation use is much higher  and lower charges during the winter months.    Interest and Other Misc. – Increase over prior year is primarily due to investment earnings. Investment earnings have varied  over the past couple of years as the market has seen uncertainty with the pandemic and now concerns of recession. This  revenue is highly influenced by the federal funds rate, and we may continue to see a rise in investment earnings as this is  adjusted. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely  track with the federal funds rate as it decreases or increases; the city holds roughly 52% of the total cash and investments for  the city in the LGIP.  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental ‐$                       1,472,037$            846,705$         846,705$         (625,332)$        57.52% Charges for services 18,825,204      19,133,877            19,486,619      661,415           352,742           101.84% Rents, leases, and misc fees 259,955           234,465                  278,802           18,847              44,337              118.91% Interest and other misc 1,526,952        1,212,622               2,181,681        654,729           969,059           179.91% TOTAL REVENUES 20,612,111      22,053,001            22,793,807      2,181,696        740,806           103.36% EXPENSES: Personnel 4,376,591        5,188,033               4,638,960        (262,369)          549,073           89.42% Supplies 1,134,189        886,189                  1,072,798        61,391              (186,609)          121.06% Contracted Services 3,420,049        3,527,786               3,490,176        (70,127)            37,610              98.93% Internal Services 2,801,543        2,940,571               2,874,327        (72,784)            66,244              97.75% TOTAL OPERATING EXPENSES 11,732,372      12,542,579            12,076,261      (343,889)          466,318           96.28% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 8,879,739        9,510,422               10,717,546      1,837,807        1,207,124        112.69% DEBT SERVICE: Principal 1,556,117        1,504,997               1,504,997        51,120               ‐                         100.00% Interest 190,408           164,913                  164,471           25,937              442                   99.73% TOTAL DEBT SERVICE 1,746,525        1,669,910               1,669,468        77,057              442                   99.97% CAPITAL OUTLAY 2,741,136        38,125,243            5,136,189        (2,395,053)       32,989,054      13.47% TRANSFERS OUT (33,868)            (42,236)                   (48,500)            14,632              6,264                N/A NET TRANSFERS (33,868)            (42,236)                   (48,500)            (14,632)            (6,264)               N/A CHANGE IN FUND BALANCE 4,358,210        (30,326,967)           3,863,389        (494,821)          34,190,356      N/A BEGINNING FUND BALANCE, Jan 1 43,849,867      48,208,077            48,208,077      4,358,210         ‐                         100.00% ENDING FUND BALANCE, Dec 31 48,208,077$   17,881,110$          52,071,466$   3,863,389$      34,190,356$   291.21% Restricted for Debt Service 1,394,050        1,394,050               1,394,050         Operating Reserve 1,624,606        1,706,760               1,706,760         AVAILABLE FUND BALANCE 45,189,421$   14,780,300$          48,970,656$    WATER UTILITY VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 26 of 36   Personnel – The increase from prior year is largely due to filling positions that were open in prior year and an increase for  cost‐of‐living adjustments. The amount under budget is due to occasional vacancies throughout the year in 2023.     Capital Outlay – The increase in capital outlay from prior year is driven by a few larger ongoing projects including Sunset  Gardens and Rainier Avenue projects which total over $2M through December 2023. The amount under budget is largely due  to the Highlands Reservoir project which has not entered the construction phase at the end of 2023 total budgeted is $20.1M.    Wastewater Utility Fund  This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and  maintenance of the city’s wastewater utility.        Charges for Services – The increase from prior year is due to the rates for wastewater increasing 3% from 2022. In addition,  consumption in 2023 has been slightly above prior year by around 1%.    Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen uncertainty  with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate, and we may  continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government Investment Pool  (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city  holds roughly 52% of the total cash and investments for the city in the LGIP.  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 91,346$           62,734$                  57,925$           (33,421)$          (4,809)$            92.33% Charges for services 11,704,629      11,928,231            12,120,859      416,230           192,628           101.61% Fines and penalties 61                       ‐                                 ‐                         (61)                     ‐                         N/A Interest and other misc 968,581           742,604                  1,299,817        331,236           557,213           175.04% TOTAL REVENUES 12,764,617      12,733,569            13,478,601      713,984           745,032           105.85% EXPENSES: Personnel 2,354,721        3,071,964               2,466,566        (111,845)          605,398           80.29% Supplies 75,609              74,441                    145,413           (69,804)            (70,972)            195.34% Contracted Services 2,353,793        2,512,265               2,435,223        (81,430)            77,042              96.93% Internal Services 1,896,536        1,999,188               1,862,913        33,623              136,275           93.18% TOTAL OPERATING EXPENSES 6,680,659        7,657,858               6,910,115        (229,456)          747,743           90.24% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 6,083,958        5,075,711               6,568,486        484,528           1,492,775        129.41% DEBT SERVICE: Principal 624,400           588,350                  588,350           36,050               ‐                         100.00% Interest 85,252              73,449                    73,219              12,033              230                   99.69% TOTAL DEBT SERVICE 709,652           661,799                  661,569           48,083              230                   99.97% CAPITAL OUTLAY 3,353,224        17,101,209            2,565,300        787,924           14,535,909      15.00% TRANSFERS IN 48,400               ‐                                 ‐                         (48,400)             ‐                         N/A TRANSFERS OUT (7,297)               (24,236)                   (29,640)            22,343              5,404                N/A NET TRANSFERS 41,103              (24,236)                   (29,640)            (70,743)            (5,404)               N/A CHANGE IN FUND BALANCE 2,062,185        (12,711,533)           3,311,977        1,249,792        16,023,510      N/A BEGINNING FUND BALANCE, Jan 1 20,788,687      22,850,871            22,850,871      2,062,184         ‐                         100.00% ENDING FUND BALANCE, Dec 31 22,850,871$   10,139,338$          26,162,848$   3,311,977$      16,023,510$   258.03% Restricted for Debt Service 661,227           661,227                  661,227            Operating Reserve 913,756           975,361                  975,361            AVAILABLE FUND BALANCE 21,275,888$   8,502,750$            24,526,260$    WASTEWATER UTILITY VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 27 of 36   Personnel – The increase from prior year primarily relates cost of living adjustments. The amount under budget is due to  vacant positions in 2023.     Internal Services – The amount under budget is largely due to less than anticipated usage of internal city services which are  refunded back to enterprise funds at the end of the year based on the annual usage.     Capital Outlay – The decrease from prior year is primarily due to the majority of project expenses for Downtown Sewer  Replacement and Rehabilitation project that occurred in 2022 and the Renton Highlands Sanitary Sewer Rehabilitation  project that was completed in 2022. The amount under budget is due to several large projects just beginning in 2023  including Kennydale Lakeline Sewer upgrade, and Force Main and Lift Station upgrades.     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 – Increase from prior year is largely due the increase in King County fees which is passed through to  wastewater customers the rate went up 5.75% in 2023.     Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen uncertainty  with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate, and we may  continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government Investment Pool  (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city  holds roughly 52% of the total cash and investments for the city in the LGIP.    Contracted Services – The increase from prior year relates to the increase in King County fees and the timing of payments to  King County for 2022 invoices. In 2022, 11 months of invoices were reflected through December totalled $16.9M.  The $1.6M  invoice for 2022 was corrected in 2023.      2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 19,394,800$   20,173,811$          20,417,415$   1,022,615$      243,604$         101.21% Interest and other misc 65,460              129,355                  207,963           142,503           78,608              160.77% TOTAL REVENUES 19,460,260      20,303,166            20,625,378      1,165,118        322,212           101.59% EXPENSES: Contracted Services 16,987,130      20,173,811            20,273,077      (3,285,947)       (99,266)            100.49% TOTAL OPERATING EXPENSES 16,987,130      20,173,811            20,273,077      (3,285,947)       (99,266)            100.49% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 2,473,130        129,355                  352,301           (2,120,829)       222,946           272.35% TOTAL DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY ‐                          ‐                                 ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                          ‐                                 ‐                          ‐                          ‐                         N/A CHANGE IN FUND BALANCE 2,473,130        129,355                  352,301           (2,120,829)       222,946           272.35% BEGINNING FUND BALANCE, Jan 1 3,764,012        6,237,142               6,237,142        2,473,130         ‐                         100.00% ENDING FUND BALANCE, Dec 31 6,237,142$      6,366,497$            6,589,443$      352,301$         222,946$         103.50% Operating Reserve 380,000           380,000                  380,000            AVAILABLE FUND BALANCE 5,857,142$      5,986,497$            6,209,443$       KING COUNTY METRO VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 28 of 36   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 revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenses, and reimbursement of related expenses. Grant revenue is budgeted at  100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to reimbursement  of grant expenses occurring in a future year. Any grant revenue not received in award year is carried forward each year until  the grant funds are fully received or the grant agreement expires. The increase from prior year relates to capital project grants  as they are received after expenditures have been spent on the projects, the majority of the remaining budget is for multiple  grants related to the Monroe Avenue project $12M remaining budget.    Charges for Services ‐ Surface water charges increased from prior year as the rates for surface water charged to utility users  increased 4% in 2023.  Interest and Other Misc. – The decrease from prior year is largely due to a prior period adjustment that occurred in 2022 to  correct interest payments from the general fund.    2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 34,584$           51,217$                  22,125$           (12,459)$          (29,092)$          43.20% Grants / intergovernmental 2,767,175        25,444,433            2,618,178        (148,997)          (22,826,255)    10.29% Charges for services 12,661,372      13,206,231            13,522,205      860,833           315,974           102.39% Interest and other misc 4,105,277        642,004                  1,124,299        (2,980,978)       482,295           175.12% TOTAL REVENUES 19,568,408      39,343,885            17,286,807      (2,281,601)       (22,057,078)    43.94% EXPENSES: Personnel 3,761,824        4,575,051               3,912,710        (150,886)          662,341           85.52% Supplies 102,319           174,650                  115,979           (13,660)            58,671              66.41% Contracted Services 2,074,588        4,625,819               1,795,107        279,481           2,830,712        38.81% Internal Services 2,554,537        2,989,720               2,650,407        (95,870)            339,313           88.65% TOTAL OPERATING EXPENSES 8,493,268        12,365,240            8,474,203        19,065              3,891,037        68.53% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 11,075,140      26,978,645            8,812,604        (2,262,536)       (18,166,041)    32.67% DEBT SERVICE: Principal 510,000           664,300                  664,300           (154,300)           ‐                         100.00% Interest 100,649           90,517                    90,338              10,311              179                   99.80% TOTAL DEBT SERVICE 610,649           754,817                  754,638           (143,989)          179                   99.98% CAPITAL OUTLAY 3,810,048        39,663,607            7,078,015        (3,267,967)       32,585,592      17.85% Transfers In 118,033            ‐                                 ‐                         (118,033)           ‐                         N/A Transfers Out (140,480)          (2,236)                     (7,640)               (132,840)          5,404                N/A NET TRANSFERS (22,447)            (2,236)                     (7,640)               14,807              (5,404)               N/A CHANGE IN FUND BALANCE 6,631,996        (13,442,015)           972,311           (5,659,685)       14,414,326      N/A BEGINNING FUND BALANCE, Jan 1 21,682,758      28,314,755            28,314,755      6,631,997         ‐                         100.00% Prior Period Adjustment 3,785,938         ‐                                 ‐                         (3,785,938)        ‐                         N/A BEGINNING FUND BALANCE, Jan 1 ‐ restated 25,468,696      28,314,755            28,314,755      2,846,059         ‐                         100.00% ENDING FUND BALANCE, Dec 31 32,100,692$   14,872,740$          29,287,066$   (2,813,626)$    14,414,326$   196.92% Restricted for Debt Service 754,868           754,868                  754,868            Operating Reserve 1,109,340        1,245,213               1,245,213         AVAILABLE FUND BALANCE 30,236,484$   12,872,659$          27,286,985$    SURFACE WATER UTILITY VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 29 of 36   Personnel – The increase from prior year is primarily due to cost‐of‐living adjustments in 2023. The amount under budget is  due to vacant positions.    Contracted Services – The decrease from prior year relates to construction projects professional services for expenditures  that are not capital in nature. This decreases primarily were due to the following projects: Madsen Creek Improvement, Lower  Cedar River Flood Control, and Storm Water Facility Retrofit Study. The amount under budget is primarily due to the Cedar  River Gravel Removal project which has a remaining budget of $2.2M as of year‐end.    Capital Outlay – Decrease from prior year primarily relates to the Downtown Storm System Improvement project which  had most of its work completed in 2022 as well as the NE 16th and Jefferson Ave NE Stormwater project which was  completed in 2022.  The remaining budget is largely for the Monroe Avenue and SE 2nd project which has a remaining  budget of $15M.   Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 30 of 36   INTERNAL SERVICE FUNDS  Internal service funds are used to account for the goods and services furnished by one city department to other city  departments on a cost reimbursement basis. YTD budgets are not prepared for Internal Service Funds.    Equipment Rental Fund  This fund accounts for revenues and expenses for administration, purchase, and maintenance of the city’s vehicle and  equipment fleet services. Departments pay in monthly amounts for maintenance and operations. Replacement reserves are  paid monthly over the estimated useful lives of each individual vehicle or piece of equipment. These reserves are accumulated  in fund balance so that they are available to fund the replacement of the vehicle/equipment when the time comes.   Interdepartmental Services – The increase from prior year is primarily related to increased maintenance and operating  expenditures budgeted in 2023 which include budgeted recovery for repair, maintenance, personnel, and fuel.    Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen  uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate,  and we may continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government  Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or  increases; the city holds roughly 52% of the total cash and investments for the city in the LGIP.    Personnel – The amount under budget is due to one vacant position in 2023.       2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 94,536$            ‐$                             74,014$           (20,522)$          74,014$           N/A Interdepartmental services 6,436,175        6,435,263               6,573,749        137,574           138,486           102.15% Interest and other misc 166,480           276,828                  481,888           315,408           205,060           174.07% TOTAL REVENUES 6,697,191        6,712,091               7,129,651        432,460           417,560           106.22% EXPENSES: Personnel 1,083,973        1,317,447               1,100,020        (16,047)            217,427           83.50% Supplies 1,670,826        1,752,153               1,732,787        (61,961)            19,366              98.89% Contracted Services 379,775           392,166                  418,279           (38,504)            (26,113)            106.66% Internal Services 41,193              131,363                  114,560           (73,367)            16,803              87.21% TOTAL OPERATING EXPENSES 3,175,767        3,593,129               3,365,646        (189,879)          227,483           93.67% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 3,521,424        3,118,962               3,764,005        242,581           645,043           120.68% TOTAL DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY 522,094           7,278,801               2,557,604        (2,035,510)       4,721,197        35.14% TRANSFERS IN 153,137           3,794,039               3,794,039        3,640,902         ‐                         100.00% TRANSFERS OUT ‐                          ‐                                 ‐                          ‐                          ‐                         N/A NET TRANSFERS 153,137           3,794,039               3,794,039        3,640,902         ‐                         100.00% CHANGE IN FUND BALANCE 3,152,467        (365,800)                 5,000,440        1,847,973        5,366,240        N/A BEGINNING FUND BALANCE, Jan 1 10,125,169      13,277,635            13,277,635      3,152,466         ‐                         100.00% ENDING FUND BALANCE, Dec 31 13,277,635$   12,911,835$          18,278,075$   5,000,440$      5,366,240$      141.56% Operating Reserves 12,911,835$          12,911,835$    AVAILABLE FUND BALANCE 13,277,635$    ‐$                             5,366,240$       EQUIPMENT RENTAL VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 31 of 36   Capital Outlay – The increase from prior year is due to an increase in vehicle purchases due to major supply chain issues in  prior year that delayed purchases and at times made it challenging to order the specific vehicles needed. The amount under  budget is due to not yet replacing all budgeted vehicles for the year. Vehicle replacement varies each year based on the  condition and usage of vehicles as well as the availability of suitable replacement vehicles to purchase.     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 and increased insurance premiums which have risen significantly in the last several years.    Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen  uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate,  and we may continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government  Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or  increases; the city holds roughly 52% of the total cash and investments for the city in the LGIP.    Personnel – Increase from prior year is due to cost‐of‐living adjustments in 2023, an additional employee health and safety  coordinator position (started in May 2022), and the series promotion of personnel within the department. The amount under  budget is due to vacant positions in 2023 including the health and safety coordinator.     2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 4,689,399$      4,838,982$            4,658,951$      (30,448)$          (180,031)$        96.28% Interest and other misc 347,616           645,000                  1,012,175        664,559           367,175           156.93% TOTAL REVENUES 5,037,015        5,483,982               5,671,126        634,111           187,144           103.41% EXPENSES: Personnel 1,166,137        2,184,056               1,480,344        (314,207)          703,712           67.78% Supplies 68                      6,956                       683                   (615)                  6,273                9.82% Contracted Services 3,145,677        4,317,754               2,897,432        248,245           1,420,322        67.11% TOTAL OPERATING EXPENSES 4,311,882        6,508,766               4,378,459        (66,577)            2,130,307        67.27% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 725,133           (1,024,784)             1,292,667        567,534           2,317,451        N/A TOTAL DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY ‐                          ‐                                 ‐                          ‐                          ‐                         N/A Transfers In 2,052,772        1,136,346               1,136,346        (916,426)           ‐                         100.00% Transfers Out (51,420)            (952,868)                 (958,813)          907,393           5,945                N/A NET TRANSFERS 2,001,352        183,478                  177,533           (1,823,819)       (5,945)               96.76% CHANGE IN FUND BALANCE 2,726,485        (841,306)                 1,470,200        (1,256,285)       2,311,506        N/A BEGINNING FUND BALANCE, Jan 1 20,494,538      23,221,020            23,221,020      2,726,482         ‐                         100.00% ENDING FUND BALANCE, Dec 31 23,221,020$   22,379,714$          24,691,220$   1,470,200$      2,311,506$      110.33% Operating Reserves 13,952,413      17,616,914            17,616,914       AVAILABLE FUND BALANCE 9,268,607$      4,762,800$            7,074,306$       INSURANCE VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 32 of 36   Contracted Services – The decrease from prior year is primarily due to a decrease in property liability claims which had a  significant increase in 2022 which had double the claims as 2023. The amount under budget is primarily due to liability claims  coming in significantly lower than expected, budget was increased due to significant expenditures in the prior year.     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 decrease from prior year is primarily related to a decrease in charges to departments for  the replacement reserve of the city’s ERP system which was budgeted and fully recovered in 2022.     Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen  uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate,  and we may continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government  Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or  increases; the city holds roughly 52% of the total cash and investments for the city in the LGIP.    Personnel – The increase from prior year is primarily a result of the cost‐of‐living adjustment in 2023. The amount under  budget is due to vacant positions including the GIS Manager position.    Supplies ‐ The amount under prior year is due to a significant cost in 2022 related to Axon body cameras as two annual  payments were made. The amount under budget is primarily due to decreased expenditures for desktop and laptops per the  replacement schedule and current year budget savings for Axon equipment due to timing of billings.  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 257,614$         250,000$                225,908$         (31,706)$          (24,092)$          90.36% Interdepartmental services 9,125,435        7,355,590               7,355,595        (1,769,840)       5                        100.00% Interest and other misc 63,143              223,000                  266,849           203,706           43,849              119.66% TOTAL REVENUES 9,446,192        7,828,590               7,848,352        (1,597,840)       19,762              100.25% EXPENSES: Personnel 3,147,716        3,873,557               3,284,445        (136,729)          589,112           84.79% Supplies 1,988,765        1,306,039               1,096,693        892,072           209,346           83.97% Contracted Services 3,068,444        3,575,781               3,773,308        (704,864)          (197,527)          105.52% Internal Services ‐                         6,537                       6,537                (6,537)                ‐                         100.00% TOTAL OPERATING EXPENSES 8,204,925        8,761,914               8,160,983        43,942              600,931           93.14% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 1,241,267        (933,324)                 (312,631)          (1,553,898)       620,693           N/A TOTAL DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY 283,120           5,608,033               1,014,515        (731,395)          4,593,518        18.09% TRANSFERS IN 4,409,742        1,698,813               1,722,403        (2,687,339)       23,590              101.39% NET TRANSFERS 4,409,742        1,698,813               1,722,403        (2,687,339)       23,590              101.39% CHANGE IN FUND BALANCE 5,367,889        (4,842,544)             395,257           (4,972,632)       5,237,801        N/A BEGINNING FUND BALANCE, Jan 1 3,653,455        9,021,343               9,021,343        5,367,888         ‐                         100.00% ENDING FUND BALANCE, Dec 31 9,021,343$      4,178,799$            9,416,600$      395,257$         5,237,801$      225.34% Operating Reserves 2,326,091$            2,326,091$       AVAILABLE FUND BALANCE 9,021,343$      1,852,708$            6,695,252$       INFORMATION TECHNOLOGY VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 33 of 36   Contracted Services – The increase over prior year is due to new service contracts as well as increased costs including IT  ticketing software ($48K), IT detection and response software ($110K), NeoGov software ($58K), IT Strategic Plan contract  ($119K), and increases to Microsoft 365 contract pricing.    Capital Outlay –The increase in capital outlay over prior year is due to the Disaster Recovery project $697K, as well as IT  upgrades at the Renton Community Center 108K.  The amount under the annual budget is for capital projects that have not  started or are in initial phases including $3M for the City’s ERP replacement.    Facilities Fund  This fund accounts for the administration, maintenance, and operation of city‐owned facilities. Expenses are paid by the  Facilities Fund and rates are charged to departments based on square footage.       Interdepartmental Services – The increase over prior year is due to increased expenses in facilities charged through an  internal service fund charge to each department as well as cost of living salary increases for facilities personnel charged to  other city departments.     Personnel – The increase from prior year is due to filling positions that were vacant in 2022, the budget savings is primarily  due to open positions, as of December 31st there were 5 vacant positions.     Supplies – The amount over the annual budget is primarily due to inflation driving typical operating costs to be higher than  anticipated.     Contracted Services – The decrease from prior year is due to large expenditures in 2022 near the end of the year including  new boilers for the Henry Moses Aquatic Center. The amount over the annual budget is due to higher than anticipated  costs for repair and maintenance including several large projects including new badge readers, roof and gutter cleaning as  well as increased utility costs for water, sewer and garbage.    2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 6,593,419$      6,883,097$            6,899,589$      306,170$         16,492$           100.24% Interest and other misc 9,403                20,492                    16,147              6,744                (4,345)               78.80% TOTAL REVENUES 6,602,822        6,903,589               6,915,736        312,914           12,147              100.18% EXPENSES: Personnel 3,432,461        4,257,370               3,660,291        (227,830)          597,079           85.98% Supplies 905,501           873,595                  999,322           (93,821)            (125,727)          114.39% Contracted Services 1,982,578        1,592,473               1,827,387        155,191           (234,914)          114.75% Internal Services 141,208           273,086                  256,283           (115,075)          16,803              93.85% TOTAL OPERATING EXPENSES 6,461,748        6,996,524               6,743,283        (281,535)          253,241           96.38% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 141,074           (92,935)                   172,453           31,379              265,388           N/A TOTAL DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY 11,045              311,181                  345,875           (334,830)          (34,694)            111.15% Transfers In 22,705              282,033                  282,033           259,328            ‐                         100.00% NET TRANSFERS 22,705              282,033                  282,033           259,328            ‐                         100.00% CHANGE IN FUND BALANCE 152,734           (122,083)                 108,611           (44,123)            230,694           N/A BEGINNING FUND BALANCE, Jan 1 785,189           937,922                  937,922           152,733            ‐                         100.00% ENDING FUND BALANCE, Dec 31 937,922$         815,839$                1,046,533$      108,611$         230,694$         128.28% FACILITIES VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 34 of 36   Internal Services – The increase from prior year is due to adding the sustainability division in public works which partially  supports facilities and other public work divisions.    Capital Outlay – The increase from prior year is due to several large projects in 2023 including work done at the Highlands  Neighborhood Center and Henry Moses Aquatic Center.    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 including personnel, which received a cost‐of‐living adjustment  in 2023.     Personnel – The increase from prior year is largely due to filling the director position which was vacant until January 2023.  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 1,373,536$      1,592,402$            1,592,351$      218,815$         (51)$                  100.00% Interest and other misc 1,777                1,000                       13,539              11,762              12,539              1353.90% TOTAL REVENUES 1,378,313        1,593,402               1,605,890        227,577           12,488              100.78% EXPENSES: Personnel 757,883           1,184,992               958,073           (200,190)          226,919           80.85% Supplies 47,485              63,432                    47,387              98                      16,045              74.71% Contracted Services 283,706           393,155                  298,158           (14,452)            94,997              75.84% Internal Services 2,034                4,696                       4,696                (2,662)                ‐                         100.00% TOTAL OPERATING EXPENSES 1,091,108        1,646,275               1,308,314        (217,206)          337,961           79.47% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 287,205           (52,873)                   297,576           10,371              350,449           N/A TOTAL DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY ‐                         46,651                    46,651              (46,651)             ‐                         100.00% Transfers Out ‐                         (38,525)                   (38,212)            38,212              (313)                  N/A NET TRANSFERS ‐                         (38,525)                   (38,212)            (38,212)            313                   N/A CHANGE IN FUND BALANCE 287,205           (138,049)                 212,713           (74,492)            350,762           N/A BEGINNING FUND BALANCE, Jan 1 141,517           428,724                  428,724           287,207            ‐                         100.00% ENDING FUND BALANCE, Dec 31 428,724$         290,675$                641,437$         212,713$         350,762$         220.67% COMMUNICATIONS VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 35 of 36   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 from prior year is due to increasing insurance costs which increased about 5% from  prior year and with fewer vacant positions and the city would pay more to cover for more employees.    Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen  uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate,  and we may continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government  Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or  increases; the city holds roughly 52% of the total cash and investments for the city in the LGIP.    Medical/Dental Claims – The increase from prior year is likely due to fewer vacant positions and the city would pay more to  cover for more employees.    Contracted Services – The amount under budget is primarily due to savings in administrative fees and insurance  professional services.               2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Premiums 11,589,186$   15,603,216$            13,308,361$   1,719,175$      (2,294,855)$    85.29% Interest and other misc 587,742           712,000                    793,706           205,964           81,706              111.48% TOTAL REVENUES 12,176,928      16,315,216               14,102,067      1,925,139        (2,213,149)       86.44% EXPENSES: Personnel 341,178           339,251                    319,918           21,260              19,333              94.30% Medical/Dental Claims 11,014,928      14,166,872               11,221,217      (206,289)          2,945,655        79.21% Supplies 6,711                7,500                         7,647                (936)                  (147)                  101.96% Contracted Services 468,982           579,786                    479,635           (10,653)            100,151           82.73% Internal Services 64,621              103,752                    62,323              2,298                41,429              60.07% TOTAL OPERATING EXPENSES 11,896,420      15,197,161               12,090,740      (194,320)          3,106,421        79.56% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 280,508           1,118,055                 2,011,327        1,730,819        893,272           179.90% TOTAL DEBT SERVICE ‐                          ‐                                   ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY ‐                          ‐                                   ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                          ‐                                   ‐                          ‐                          ‐                         N/A CHANGE IN FUND BALANCE 280,508           1,118,055                 2,011,327        1,730,819        893,272           179.90% BEGINNING FUND BALANCE, Jan 1 6,655,137        6,935,644                 6,935,644        280,507            ‐                         100.00% ENDING FUND BALANCE, Dec 31 6,935,644$      8,053,699$               8,946,971$      2,011,327$      893,272$         111.09% Insurance Reserves 3,774,249        4,559,148                 4,559,148         AVAILABLE FUND BALANCE 3,161,395$      3,494,551$               4,387,823$       HEALTH INSURANCE VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 4th Quarter 2023  Page 36 of 36   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.         Premiums – The annual funding by the general fund was reduced in 2023 as the latest actuary report showed the gap  between the expected long‐term care costs and fund balance was smaller than in prior years.     Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen  uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate,  and we may continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government  Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or  increases; the city holds roughly 52% of the total cash and investments for the city in the LGIP.    Medical/Dental Claims – The amount under budget is due to budget increases made in the final budget adjustment to  ensure adequate appropriations were available for claim expenditures.         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 . 2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 38,624$           40,000$                  37,276$           (1,348)$            (2,724)$            93.19% Premiums 2,624,684        912,500                  912,500           (1,712,184)        ‐                         100.00% Interest and other misc 377,478           708,000                  835,284           457,806           127,284           117.98% TOTAL REVENUES 3,040,786        1,660,500               1,785,060        (1,255,726)       124,560           107.50% EXPENSES: Personnel 84,636              101,664                  99,407              (14,771)            2,257                97.78% Medical/Dental Claims 1,166,510        1,481,877               1,227,041        (60,531)            254,836           82.80% Contracted Services 49,108              106,293                  66,585              (17,477)            39,708              62.64% TOTAL OPERATING EXPENSES 1,300,254        1,689,834               1,393,033        (92,779)            296,801           82.44% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 1,740,532        (29,334)                   392,027           (1,348,505)       421,361           N/A TOTAL DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY ‐                          ‐                                 ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                          ‐                                 ‐                          ‐                          ‐                         N/A CHANGE IN FUND BALANCE 1,740,532        (29,334)                   392,027           (1,348,505)       421,361           N/A BEGINNING FUND BALANCE, Jan 1 18,188,260      19,928,792            19,928,792      1,740,532         ‐                         100.00% ENDING FUND BALANCE, Dec 31 19,928,792$   19,899,458$          20,320,819$   392,027$         421,361$         102.12% Insurance Reserves 19,928,792      19,899,458            20,320,819       AVAILABLE FUND BALANCE ‐$                        ‐$                              ‐$                        RETIREE HEALTHCARE VARIANCE