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Home My WebLink About201812, December h:\finance\financial reporting\monthly reports\2018 reports\cover 1218 2.docx ADMINISTRATIVE SERVICES M E M O R A N D U M DATE: February 11, 2019 TO: Don Persson, Council President Members of Renton City Council CC: Denis Law, Mayor Bob Harrison, Chief Administrative Officer FROM: Jan Hawn, ASD Administrator STAFF CONTACT: Marc Gordon, Sr. Finance Analyst SUBJECT: December 2018 Financial Status Report At the end of December, general governmental revenues show $5.6M or 5.5% over budget. Revenue source(s) that are higher than expected are: sales tax ($1.7M); criminal justice sales tax ($309K); utility taxes ($701K); gambling taxes ($831K); business & occupation taxes ($3.1M); public safety ($591K); interest & other earnings ($315K); fines and penalties ($227K); and real estate excise tax ($3.4M). On the down side, the revenue source(s) that are underperforming the year to date budget are: sales tax annexation credit ($501K); business licensing ($274K); building permits & development service fees ($676K below); culture and recreation ($212K); and other financing ($291K). General government expenditures showed a favorable variance of $4.8M or 4.7%. See page 10 of report for further expenditure over-spent/savings explanations. The attached report provides more detailed discussion of each revenue source and our updated projections for the year. Please do not hesitate to contact me at x6937 should you have any questions or any suggestions about the report. Ed Prince, Council President Members of Renton City Council Page 2 of 2 February 11, 2019 h:\finance\financial reporting\monthly reports\2018 reports\cover 1218 2.docx This page is intentionally left blank Page | 1 Preliminary as of 03/01/2019 General Governmental Funds $% Beginning Fund Balance 19,962,845$ 19,962,845$ 26,563,785$ 26,563,785$ 33,284,838$ 33,284,838$ 33,284,838$ - 0.0% OPERATING REVENUES Property Tax 37,038,480 37,038,480 24,356,562 24,356,562 19,397,308 19,397,308 16,068,337 (3,328,971) -17.2% Sales Tax 26,353,246 26,353,246 26,331,634 26,331,634 26,683,440 26,683,440 28,428,635 1,745,195 6.5% Sales Tax - Annexation Credit 3,114,762 3,114,762 3,123,230 3,123,230 2,120,300 2,120,300 1,619,553 (500,747) -23.6% Criminal Justice Sales Tax 2,701,787 2,701,787 2,808,564 2,808,564 2,782,404 2,782,404 3,091,020 308,616 11.1% Natural Gas Use Tax 184,638 184,638 180,456 180,456 228,000 228,000 141,408 (86,592) -38.0% Admission Tax 262,506 262,506 223,157 223,157 320,000 320,000 225,466 (94,534) -29.5% Franchise Fees 1,406,092 1,406,092 1,562,100 1,562,100 1,447,192 1,447,192 1,508,915 61,723 4.3% Electricity Tax 5,440,139 5,440,139 5,721,366 5,721,366 5,476,959 5,476,959 5,592,795 115,836 2.1% Natural Gas Utility Tax 1,327,937 1,327,937 1,630,375 1,630,375 1,350,900 1,350,900 1,446,693 95,793 7.1% Garbage/Solid Waste 717,148 717,148 627,254 627,254 680,000 680,000 743,003 63,003 9.3% TV Cable 1,619,364 1,619,364 1,651,405 1,651,405 1,662,115 1,662,115 1,525,625 (136,490) -8.2% Telephone 859,868 859,868 866,519 866,519 729,131 729,131 830,975 101,844 14.0% Cellular Phone 1,541,204 1,541,204 1,481,298 1,481,298 1,536,267 1,536,267 1,159,489 (376,778) -24.5% City Utilities 4,206,473 4,206,473 4,840,530 4,840,530 4,000,752 4,000,752 4,925,046 924,294 23.1% Utility Tax Audit 111,227 111,227 - - - - - - 0.0% Leasehold Excise Tax 173,769 173,769 173,396 173,396 179,000 179,000 189,427 10,427 5.8% Gambling Excise Tax 2,500,604 2,500,604 2,695,368 2,695,368 2,000,000 2,000,000 2,831,045 831,045 41.6% Real Estate Excise Tax 6,121,830 6,121,830 7,211,736 7,211,736 4,420,000 4,420,000 7,815,124 3,395,124 76.8% Less: CIP REET (2,707,676) (2,707,676) (6,461,736) (6,461,736) (4,420,000) (4,420,000) (4,420,000) - 0.0% EMS Levy 479,597 479,597 - - - - - - 0.0% B&O Taxes 6,375,322 6,375,322 9,633,034 9,633,034 7,636,000 7,636,000 10,689,216 3,053,216 40.0% Less: CIP B&O Taxes (2,000,000) (2,000,000) (2,473,974) (2,473,974) (1,379,314) (1,379,314) (1,379,314) - 0.0% Business License Fees 1,926,510 1,926,510 1,480,730 1,480,730 1,311,894 1,311,894 1,037,650 (274,244) -20.9% Less: CIP Business License Fees (1,587,627) (1,587,627) (614,796) (614,796) (623,186) (623,186) (356,629) 266,557 -42.8% Animal Licenses and Spec Events Permits 102,905 102,905 140,391 140,391 94,174 94,174 119,901 25,727 27.3% Building Permits & Development Svc Fees 5,293,563 5,293,563 4,907,983 4,907,983 5,326,699 5,326,699 4,650,227 (676,472) -12.7% Intergovt'l (Grants, State Shared, etc)3,998,953 3,998,953 4,285,806 4,285,806 4,618,136 4,618,135 4,232,288 (385,848) -8.4% Fire District 25 and 40 Contracts 3,517,779 3,517,779 341,939 341,939 357,660 357,660 357,660 - 0.0% Public Safety 994,179 994,179 837,728 837,728 617,635 617,635 1,208,422 590,787 95.7% Culture and Recreation 1,632,903 1,632,903 1,722,323 1,722,323 1,760,923 1,760,923 1,509,375 (251,548) -14.3% Interfund/Interdept-Services 3,377,663 3,377,663 3,916,334 3,916,334 4,361,086 4,361,086 3,900,407 (460,678) -10.6% Fines and Penalties 901,592 901,592 822,450 822,450 830,082 830,082 810,152 (19,930) -2.4% Photo Enforcement 1,959,071 1,959,071 2,124,399 2,124,399 3,216,405 3,216,405 3,463,040 246,635 7.7% Seizure Funds - Federal/State/Local 987,293 987,293 176,503 176,503 - - 349,134 349,134 100.0% Interests and Other Earnings 1,058,880 1,058,880 1,155,371 1,155,371 875,300 875,300 1,189,995 314,695 36.0% Rents, Leases, and Concessions 642,192 642,192 634,897 634,897 631,003 631,003 673,666 42,663 6.8% Contributions and Donations 96,582 96,582 177,919 177,919 242,595 242,595 197,221 (45,374) -18.7% Other Miscellaneous 956,131 956,131 954,680 954,680 702,998 702,998 708,728 5,730 0.8% Other Financing Sources (Transfer-In, etc)2,129,561 2,129,561 283,213 283,213 152,142 152,142 (139,213) (291,355) -191.5% Total Operating Revenues 125,816,444 125,816,444 109,530,146 109,530,146 101,325,999 101,325,999 106,944,483 5,618,484 5.5% OPERATING EXPENDITURES Council 358,550 358,550 362,101 362,101 374,666 374,666 377,512 (2,845) -0.8% Executive 1,778,206 1,778,206 1,954,748 1,954,748 2,086,553 2,086,553 2,073,371 13,182 0.6% Emergency Management*370,832 370,832 569,333 569,333 628,191 628,191 590,655 37,536 6.0% City Attorney 1,983,834 1,983,834 2,088,718 2,088,718 2,267,734 2,267,734 2,216,692 51,042 2.3% Court Services 2,075,763 2,075,763 2,174,217 2,174,217 2,250,644 2,250,644 2,222,633 28,011 1.2% Community and Eco Dvlpmnt Admin 1,161,330 1,161,330 1,351,830 1,351,830 1,344,262 1,344,262 1,347,568 (3,305) -0.2% Development Services 2,859,410 2,859,410 3,023,728 3,023,728 3,446,946 3,446,946 3,032,130 414,816 12.0% Economic Development 1,004,411 1,004,411 949,467 949,467 1,664,738 1,664,738 905,055 759,683 45.6% Planning 2,716,214 2,716,214 2,815,148 2,815,148 3,580,743 3,580,743 3,022,122 558,621 15.6% Finance 3,046,824 3,046,824 3,132,609 3,132,609 3,661,134 3,661,134 3,427,262 233,873 6.4% City Clerk 914,251 914,251 1,119,376 1,119,376 1,359,565 1,359,565 1,274,941 84,624 6.2% Human Resources 1,193,016 1,193,016 1,221,841 1,221,841 1,395,877 1,395,877 1,268,733 127,144 9.1% Police 28,891,879 28,891,879 30,987,047 30,987,047 33,872,608 33,872,608 33,764,563 108,044 0.3% Jail Services 4,704,978 4,704,978 4,807,443 4,807,443 5,970,673 5,970,673 5,970,673 - 0.0% Fire*25,349,755 25,349,755 - - - - - - 0.0% Community Services Admin 585,983 585,983 554,951 554,951 532,039 532,039 510,454 21,585 4.1% Parks 4,475,450 4,475,450 4,842,796 4,842,796 5,324,261 5,324,261 4,923,764 400,497 7.5% Parks Planning & Natural Resources 952,980 952,980 1,059,058 1,059,058 1,373,998 1,373,998 1,114,153 259,845 18.9% Recreation 5,931,453 5,931,453 6,236,435 6,236,435 6,758,670 6,758,670 6,382,560 376,110 5.6% Human Services 1,241,169 1,241,169 1,634,387 1,634,387 1,488,726 1,488,726 1,444,639 44,087 3.0% Neighborhoods, Resources, & Events - - - - - - - - 0.0% Museum 229,543 229,543 235,712 235,712 241,246 241,246 245,590 (4,344) -1.8% Public Works Admin 398,796 398,796 406,781 406,781 417,024 417,024 417,786 (762) -0.2% Street Maintenance 5,041,509 5,041,509 5,603,141 5,603,141 5,887,710 5,887,710 5,676,989 210,721 3.6% Transportation 5,966,281 5,966,281 5,368,887 5,368,887 5,885,521 5,885,521 5,550,779 334,742 5.7% Debt Service 6,099,166 6,099,166 6,063,576 6,063,576 5,703,244 5,703,244 5,696,184 7,060 0.1% Non-Departmental and Other 9,883,923 9,883,923 14,245,763 14,245,763 4,778,864 4,778,864 4,064,656 714,208 14.9% Total Operating Expenditures 119,215,504 119,215,504 102,809,093 102,809,093 102,295,638 102,295,638 97,521,463 4,774,176 4.7% Total Ending Fund Balance 26,563,785$ 26,563,785$ 33,284,838$ 33,284,838$ 32,315,199$ 32,315,198$ 42,707,859$ 10,392,660$ 32.2% *Emergency Management was moved to Executive due to formation of RRFA Summary of Sources and Uses Annual Actual YTD Actual Favorable (Unfavorable) 16 17 018 Variance Annual Actual YTD Actual Annual Budget YTD Budget YTD Actual Monthly Financial Report December 2018 Monthly Financial Report December 2018 Page | 2 Preliminary as of 03/01/2019 OVERVIEW This financial overview reflects the City’s overall financial position for the fiscal year through December 31, 2018. Except as noted, year- to-date budgeted revenues and operating expenditures are generally based on the collection/disbursement patterns for the same period of the preceding two years. The table on the previous page summarizes the general governmental fund revenues and expenditures. Revenues Taxes The combined collection of property, sales/use, utility, gambling, admissions, and real estate excise taxes represents 75% of all resources supporting general governmental activities. The following section provides detail information on property, sales, utility, and other taxes. Property Tax Current Month Actual: $(-3.3M) YTD Actual: $16.1M Budgeted YTD: $19.4M Prior Year Same Month: $144K Prior Year YTD: $24.4M Year-to-Year Variance: $(-8.3M), -34% Actual-to-Budget YTD Variance: $(-3.4M), -17% Narrative: The total property tax levy is $5 million less in 2018, which is why the year-to-year comparison skews low. In December, $3.4 million of funds were transferred to the 316 fund for use on capital facilities projects. Alternatively, excess REET was used for debt service in lieu of property tax revenue. Sales Tax Current Month Actual: $2.3M YTD Actual: $28.4M Budgeted YTD: $26.74M Prior Year Same Month: $2.0M Prior Year YTD: $26.3M Year-to-Year Monthly Variance: $255K, 12% Year-to-Year YTD Variance: $2.1M, 8% Actual-to-Budget Monthly Variance: $52K, 2% Actual-to-Budget YTD Variance: $1.7M, 7% Narrative: New Construction, Wholesale and Service are the sectors generating and collecting more than anticipated. 2018’s monthly budgets are generally based on 2013 through 2017 collections. 17 018 018 Actual Budget Actual $%$% Jan 55,429$ 31,649$ (12,745)$ (68,174)$ -123%(44,394)$ -140% Feb 195,332 161,273 106,364 (88,967) -46%(54,909) -34% Mar 902,965 687,696 665,471 (237,493) -26%(22,225) -3% Apr 7,035,332 4,704,879 6,908,633 (126,700) -2%2,203,754 47% May 4,489,476 4,548,312 2,419,925 (2,069,551) -46%(2,128,388) -47% Jun 128,834 84,239 108,842 (19,992) -16%24,602 29% Jul 69,600 40,053 90,072 20,471 29%50,018 125% Aug 101,349 108,016 84,185 (17,164) -17%(23,831) -22% Sep 442,694 316,388 196,536 (246,158) -56%(119,852) -38% Oct 4,057,893 3,251,619 7,077,878 3,019,985 74%3,826,259 118% Nov 6,733,813 5,371,847 1,742,104 (4,991,709) -74%(3,629,743) -68% Dec 143,844 91,336 (3,318,928) (3,462,772) -2407%(3,410,264) -3734% YTD Total 24,356,562$ 19,397,308$ 16,068,337$ (8,288,225)$ -34%(3,328,971)$ -17% Annual Total 24,356,562$ 19,397,308$ Property Tax Revenues Year to Date through December 018 vs. 17 018 vs. Budget Month 17 018 018 Actual Budget Actual $%$% Jan 2,092,821$ 2,096,932$ 2,217,949$ 125,128$ 6%121,017$ 6% Feb 2,473,715 2,495,067 2,839,044 365,329 15%343,977 14% Mar 1,945,278 1,990,954 2,099,180 153,902 8%108,226 5% Apr 1,871,345 1,956,740 2,009,648 138,303 7%52,908 3% May 2,381,981 2,327,614 2,506,478 124,497 5%178,863 8% Jun 2,075,555 2,050,822 1,997,751 (77,804) -4%(53,071) -3% Jul 2,236,477 2,140,543 2,385,665 149,188 7%245,122 11% Aug 2,421,720 2,378,153 2,573,863 152,143 6%195,710 8% Sep 2,162,766 2,236,561 2,671,784 509,018 24%435,223 19% Oct 2,273,788 2,332,820 2,438,390 164,602 7%105,570 5% Nov 2,347,924 2,426,685 2,385,700 37,776 2%(40,985) -2% Dec 2,048,264 2,250,548 2,303,183 254,918 12%52,635 2% YTD Total 26,331,634$ 26,683,440$ 28,428,635$ 2,097,001$ 8%1,745,195$ 7% Annual Total 26,331,634$ 26,683,440$ 018 vs. Budget018 vs. 17 Month Year to Date through December Local Retail Sales Tax Revenues Monthly Financial Report December 2018 Page | 3 Preliminary as of 03/01/2019 The following table breaks out the City’s base sales tax (excluding Criminal Justice and Annexation Credit) by major business sectors: Utility tax Current Month Actual: $1.4M YTD Actual: $16.4M Budgeted YTD: $15.7M Prior Year Same Month: $1.4M Prior Year YTD: $17.0M Year-to-Year Monthly Variance: $2K, 0% Year-to-Year YTD Variance: $(-634K), -4% Actual-to-Budget Monthly Variance: $115K, 9% Actual-to-Budget YTD Variance: $701K, 4% Narrative: The large January variance with the budget is due to the timing of when 2018 Cell/Phone/Garbage taxes were recorded. The monthly budgets are based on 2016/2017 activity. The table below breaks out Utility Tax by source. As mentioned last month, the large variance with electrical and natural gas was due to an error in recording these revenues and has corrected itself in June. Sales Tax by Sector 17 018 Bgt YTD Act Change 018 /17 018 Act vs Bgt New Construction 4,246,126$ 3,833,546$ 4,585,841$ 339,715$ 8% $ 752,295 20% Auto Sales 4,775,263 4,977,023 5,118,532 343,269 7% 141,509 3% General Retail 7,711,534 8,005,622 7,755,414 43,880 1% (250,208)-3% Manufacturing 1,550,359 1,926,565 1,849,806 299,447 19% (76,759)-4% Wholesale 1,405,676 1,440,334 1,571,217 165,541 12% 130,883 9% Service 5,884,292 5,787,593 6,855,309 971,017 17% 1,067,717 18% Other 758,384 712,757 692,516 (65,868) -9% (20,241)-3% YTD Total 26,331,634$ 26,683,440$ 28,428,635$ 2,097,001$ 8%1,745,195$ 7% Note: Excludes Annexation Credit and Criminal Justice Sales Tax revenue. 17 018 018 Actual Budget Actual $%$% Jan 1,698,721$ 1,472,870$ 1,395,386$ (303,335)$ -18%(77,484)$ -5% Feb 1,360,589 1,413,168 1,617,972 257,383 19%204,804 14% Mar 1,197,548 1,249,534 1,579,191 381,643 32%329,657 26% Apr 1,797,449 1,493,002 1,463,336 (334,113) -19%(29,665) -2% May 1,464,438 1,341,860 1,414,956 (49,482) -3%73,096 5% Jun 1,351,607 1,173,122 1,269,602 (82,005) -6%96,480 8% Jul 1,538,390 1,342,347 1,398,960 (139,430) -9%56,613 4% Aug 1,185,237 1,155,083 1,203,168 17,931 2%48,086 4% Sep 1,261,199 1,224,457 1,197,617 (63,582) -5%(26,839) -2% Oct 1,428,438 1,322,247 1,292,218 (136,220) -10%(30,028) -2% Nov 1,267,897 1,143,031 1,083,283 (184,614) -15%(59,748) -5% Dec 1,447,690 1,333,404 1,449,344 1,654 0%115,940 9% YTD Total 16,999,203$ 15,664,124$ 16,365,034$ (634,169)$ -4%700,910$ 4% Annual Total 16,999,203$ 15,664,124$ 018 vs. Budget018 vs. 17 Year to Date through December Utility Tax Revenues Month Utility Tax by Type 17 018 Bgt YTD Act Change 018 /17 018 Act vs Bgt Electrical 5,721,366$ 5,476,959$ 5,592,795$ (128,572)$ -2% $ 115,836 2% Natural Gas 1,810,831 1,578,900 1,588,101 (222,730) -12% 9,201 1% Cell 1,481,298 1,536,267 1,159,489 (321,809) -22% (376,778)-25% Phone 866,519 729,131 830,975 (35,544) -4% 101,844 14% Cable 1,651,405 1,662,115 1,525,625 (125,779) -8% (136,490)-8% Garbage/Solid Waste 627,254 680,000 743,003 115,749 18% 63,003 9% City Utilities 4,840,530 4,000,752 4,925,046 84,517 2% 924,294 23% Utility Tax Audit - - - - N/A - N/A YTD Total 16,999,203$ 15,664,124$ 16,365,034$ (634,169)$ -4%700,910$ 4% Annual Total 16,999,203$ 15,664,124$ YTD as % of 100%100% Monthly Financial Report December 2018 Page | 4 Preliminary as of 03/01/2019 Other Taxes Real Estate Excise Tax Current Month Actual: $409K YTD Actual: $7.8M Budgeted YTD: $4.4M Prior Year Same Month: $586K Prior Year YTD: $7.2M Year-to-Year Monthly Variance: $(-176K), -30% Year-to-Year TYD Variance: $603K, 8% Actual-to-Budget Monthly Variance: $488K, N/A Actual-to-Budget YTD Variance: $3.4M, 77% Narrative: As mentioned above in the property taxes section, REET was used on debt service rather than being transferred to the 316 fund, resulting in a large positive variance. Gambling Tax Current Month Actual: $360K YTD Actual: $2.8M Budgeted YTD: $2.0M Prior Year Same Month: $265K Prior Year YTD: $2.7M Year-to-Year Monthly Variance: $95K, 36% Year-to-Year YTD Variance: $136K, 5% Actual-to-Budget Monthly Variance: $188K, 109% Actual-to-Budget YTD Variance: $831K, 42% Narrative: Gambling tax revenue continues to outperform budgeted expectations, which can primarily be attributable to current economic conditions. Franchise Fees Current Month Actual: $9K YTD Actual: $1.5M Budgeted YTD: $1.4M Prior Year Same Month: $23K Prior Year YTD: $1.6M Year-to-Year Monthly Variance: $(-14K), -60% Year-to-Year YTD Variance: $(-53K), -3% Actual-to-Budget Monthly Variance: $(-4K), -33% Actual-to-Budget YTD Variance: $62K, 4% Narrative: Franchise fee revenue is performing slightly better than expected and right on track with prior year receipts. 17 018 018 Actual Budget Actual $%$% Jan 220,536$ 157,924$ 210,929$ (9,607)$ -4%53,004$ 34% Feb 200,622 157,269 255,285 54,663 27%98,016 62% Mar 180,839 144,763 245,283 64,444 36%100,520 69% Apr 219,422 160,397 275,795 56,373 26%115,399 72% May 248,673 172,020 222,540 (26,133) -11%50,520 29% Jun 232,889 160,867 252,663 19,775 8%91,796 57% Jul 230,342 163,457 255,351 25,009 11%91,894 56% Aug 216,990 207,784 226,388 9,398 4%18,605 9% Sep 205,141 156,872 75,748 (129,394) -63%(81,124) -52% Oct 215,122 176,050 222,034 6,912 3%45,984 26% Nov 259,744 170,551 228,862 (30,882) -12%58,311 34% Dec 265,048 172,045 360,166 95,118 36%188,121 109% YTD Total 2,695,368$ 2,000,000$ 2,831,045$ 135,678$ 5%831,045$ 42% Annual Total 2,695,368$ 2,000,000$ Gambling Tax Revenue Month Year to Date through December 018 vs. Budget018 vs. 17 17 018 018 Actual Budget Actual $%$% Jan 380,870$ 355,430$ 371,458$ (9,411)$ -2%16,028$ 5% Feb 6,300 3,072 16,600 10,300 163%13,528 440% Mar 9,100 4,437 15,792 6,692 74%11,355 256% Apr 369,626 353,514 37,420 (332,207) -90%(316,094) -89% May 7,688 3,748 340,622 332,934 4331%336,874 8988% Jun 21,325 10,397 1,050 (20,275) -95%(9,347) -90% Jul 342,363 334,604 344,386 2,023 1%9,782 3% Aug 7,700 3,754 15,193 7,493 97%11,439 305% Sep 8,750 6,704 0 (8,750) -100%(6,704) -100% Oct 375,128 352,955 346,194 (28,935) -8%(6,761) -2% Nov 10,500 5,119 11,200 700 7%6,081 119% Dec 22,750 13,457 9,000 (13,750) -60%(4,457) -33% YTD Total 1,562,100$ 1,447,192$ 1,508,915$ (53,185)$ -3%61,723$ 4% Annual Total 1,562,100$ 1,447,192$ Month 018 vs. 17 018 vs. Budget Franchise Fees Revenue Year to Date through December 17 018 018 Actual Budget Actual $%$% Jan 1,028,456$ 786,056$ 840,316$ (188,139)$ -18%54,260$ 7% Feb 337,024 210,018 366,011 28,987 9%155,993 74% Mar 708,868 391,942 291,045 (417,824) -59%(100,897) -26% Apr 385,517 266,812 405,746 20,230 5%138,934 52% May 386,087 300,651 607,431 221,344 57%306,780 102% Jun 747,549 458,002 496,917 (250,632) -34%38,915 8% Jul 591,137 440,175 846,631 255,494 43%406,456 92% Aug 672,396 507,194 406,944 (265,453) -39%(100,250) -20% Sep 633,804 431,443 451,349 (182,455) -29%19,906 5% Oct 359,891 308,343 1,716,905 1,357,014 377%1,408,561 457% Nov 775,249 398,534 976,580 201,331 26%578,046 145% Dec 585,757 (79,171) 409,249 (176,509) -30%488,420 -617% YTD Total 7,211,736$ 4,420,000$ 7,815,124$ 603,388$ 8%3,395,124$ 77% Annual Total 7,211,736$ 4,420,000$ *Total REET (GF & CIP) Real Estate Excise Tax (REET) Revenues* Year to Date through December Month 018 vs. Budget018 vs. 17 Monthly Financial Report December 2018 Page | 5 Preliminary as of 03/01/2019 Admission Tax Current Month Actual: $0 YTD Actual: $225K Budgeted YTD: $320K Prior Year Same Month: $45K Prior Year YTD: $223K Year-to-Year YTD Variance: $47K, 1% Actual-to-Budget YTD Variance: $(-65K), -30% Narrative: Admission Tax returns are due quarterly in January, April, July, and October of each year. January 2018 collections represent activities conducted during the 4th quarter of 2017. Conversely, December 2018 receipts for admission tax were receipted in January 2019. Business & Occupation Tax Current Month Actual: $1K YTD Actual: $10.7M Budgeted YTD: $7.6M Prior Year Same Month: $416K Prior Year YTD: $9.6M Year-to-Year Monthly Variance: $(-415K), -100% Year-to-Year YTD Variance: $1.1M, 11% Actual-to-Budget Monthly Variance: $(-190K), -99% Actual-to-Budget YTD Variance: $3.1M, 40% Narrative: Businesses with gross receipts of $500K or more per year, earned within the City of Renton, are now required to file and pay Business and Occupation (B&O) tax, in lieu of the Business License registration fee. A large taxpayer hit the maximum threshold and had a significant payment in April. As a result, receipts have flattened out as the year has progressed. Licenses and Permits Business Licenses Current Month Actual: $54K YTD Actual: $1.0M Budgeted YTD: $1.3M Prior Year Same Month: $44K Prior Year YTD: $1.5M Year-to-Year Monthly Variance: $10K, 23% Year-to-Year YTD Variance: $(-453K), -30% Actual-to-Budget Monthly Variance: $27K, 98% Actual-to-Budget YTD Variance: $(-274K), -21% Narrative: The variance with the budget and prior year is due to two things: 1) the City adopting Ordinance 5866 which changed the reporting period from quarterly to annually with a due date of January, and 2) removing the per employee tax. The reduction in revenue collected from the per employee tax is offset by the increase in B&O (above). The City projects a decrease in overall Business Licenses. 17 018 018 Actual Budget Actual $%$% Jan 60,741$ 90,356$ 56,598$ (4,143)$ -7%(33,759)$ -37% Feb 2,788 2,733 1,473 (1,315) -47%(1,260) -46% Mar - - 112 112 100%112 100% Apr 58,566 80,156 54,560 (4,006) -7%(25,597) -32% May 1,279 842 1,911 633 50%1,069 127% Jun 785 517 - (785) -100%(517) -100% Jul 51,061 73,680 - (51,061) -100%(73,680) -100% Aug 1,578 1,040 62,959 61,381 3890%61,919 5955% Sep - 341 0 0 100%(341) -100% Oct 1,705 39,955 46,297 44,592 2615%6,342 16% Nov - 956 1,556 1,556 100%600 63% Dec 44,655 29,423 - YTD Total 223,157$ 320,000$ 225,466$ 46,963$ 1%(65,111)$ -30% Annual Total 223,157$ 320,000$ 018 vs. Budget Admission Tax Revenue Year to Date through December Month 018 vs. 17 17 018 018 Actual Budget Actual $%$% Jan 432,319$ 1,527,200$ 1,301,574$ 869,256$ 201%(225,626)$ -15% Feb 794,093 190,900 1,013,630 219,536 28%822,730 431% Mar 13,228 190,900 48,278 35,050 265%(142,622) -75% Apr 4,626,880 1,527,200 5,430,049 803,168 17%3,902,849 256% May 316,791 190,900 212,741 (104,050) -33%21,841 11% Jun 23,491 190,900 172,687 149,196 635%(18,213) -10% Jul 1,139,041 1,527,200 840,839 (298,202) -26%(686,361) -45% Aug 399,375 190,900 451,217 51,841 13%260,317 136% Sep 169,792 190,900 12,193 (157,599) -93%(178,707) -94% Oct 981,417 1,527,200 572,637 (408,780) -42%(954,563) -63% Nov 320,706 190,900 632,346 311,641 97%441,446 231% Dec 415,901 190,900 1,026 (414,875) -100%(189,874) -99% YTD Total 9,633,034$ 7,636,000$ 10,689,216$ 1,056,182$ 11%3,053,216$ 40% Annual Total 9,633,034$ 7,636,000$ *Total Business & Occupation Taxes (GF & CIP) Business & Occupation Taxes* Year to Date through December Month 018 vs. 17 018 vs. Budget 17 018 018 Actual Budget Actual $%$% Jan 229,270$ 277,687 574,453$ 345,183$ 151%296,767$ 107% Feb 157,504 157,567 208,947 51,443 33%51,379 33% Mar 53,131 33,461 41,777 (11,354) -21%8,316 25% Apr 157,983 145,552 34,897 (123,086) -78%(110,655) -76% May 126,086 97,341 33,623 (92,463) -73%(63,718) -65% Jun 36,375 27,014 30,721 (5,653) -16%3,708 14% Jul 217,718 181,851 16,354 (201,364) -92%(165,497) -91% Aug 124,833 95,699 15,778 (109,054) -87%(79,921) -84% Sep 57,640 34,647 8,889 (48,751) -85%(25,758) -74% Oct 187,368 160,619 10,260 (177,108) -95%(150,359) -94% Nov 88,975 73,242 7,950 (81,025) -91%(65,292) -89% Dec 43,847 27,214 54,000 10,153 23%26,786 98% YTD Total 1,480,730$ 1,311,894$ 1,037,650$ (443,080)$ -30%(274,244)$ -21% Annual Total 1,480,730$ 1,311,894$ *Total Business License (GF & CIP) 018 vs. 17 Year to Date through December 018 vs. Budget Business Licenses* Month Monthly Financial Report December 2018 Page | 6 Preliminary as of 03/01/2019 Building Permits and Development Service Fees Current Month Actual: $273K YTD Actual: $4.7M Budgeted YTD: $5.3M Prior Year Same Month: $331K Prior Year YTD: $4.9M Year-to-Year Monthly Variance: $(-59K), -18% Year-to-Year YTD Variance: $(-258K), -5% Actual-to-Budget Monthly Variance: $(-146K), -35% Actual-to-Budget YTD Variance: $(-676K), -13% Narrative: The large budget variance in January is due to large payments for building permits and plan review (Southport Developer and Group Health) receipted in January 2016 (monthly budgets is based on 2016/2017 activity, which accounts for almost half of the year-to-date variance. Intergovernmental These revenue sources include federal (direct and indirect) grants, state grants, state shared revenues, local grants, and entitlements. State shared revenues 95% of the total revenues in this category. The year-to-date total Intergovernmental revenue is $6.8M or 88% of the budget. State Shared Revenues YTD Total: $6.7M Year-to-Year YTD Variance: $629K, 10% Actual-to-Budget YTD Variance: $768K, 13% Narrative: The higher than expected collection is due to collecting more than anticipated Criminal Justice’s Sales Tax and marijuana enforcement. This large increase was the result of a “catch-up” payment from the state in March. In the future, the cities shared revenue distribution will be approximately double the normal bi-monthly distribution (through June 2019). 17 018 018 Actual Budget Actual $%$% Jan 399,548$ 552,839$ 314,626$ (84,921)$ -21%(238,213)$ -43% Feb 277,296 360,393 280,745 3,449 1%(79,648) -22% Mar 503,290 566,339 588,527 85,237 17%22,187 4% Apr 265,749 314,866 403,892 138,143 52%89,026 28% May 558,773 488,188 436,943 (121,831) -22%(51,246) -10% Jun 611,441 549,120 363,521 (247,920) -41%(185,599) -34% Jul 264,515 379,199 484,920 220,405 83%105,721 28% Aug 433,043 432,819 411,236 (21,807) -5%(21,583) -5% Sep 445,562 430,623 342,301 (103,261) -23%(88,323) -21% Oct 338,298 427,216 453,317 115,019 34%26,101 6% Nov 479,017 405,931 297,467 (181,550) -38%(108,464) -27% Dec 331,450 419,165 272,733 (58,717) -18%(146,432) -35% YTD Total 4,907,983$ 5,326,699$ 4,650,227$ (257,755)$ -5%(676,472)$ -13% Annual Total 4,907,983$ 5,326,699$ Year to Date through December 018 vs. Budget018 vs. 17 Month Building Permits and Development Service Fees Intergovernmental 17 018 Bgt YTD Act Change 018 /17 018 Act vs Bgt Fire District #25 -$ -$ -$ -$ N/A $ - N/A Fire District #40 341,939 357,660 357,660 15,721 5%- 0% State Shared Revenue 6,081,444 5,942,169 6,710,599 629,155 10%768,430 13% Federal Grants 676,148 1,045,114 370,389 (305,759) -45%(674,725) -65% State Grants 31,404 68,955 66,524 35,121 112%(2,431) -4% Other Grants/Intgovt 241,291 182,354 175,796 (65,495) -27%(6,558) -4% ARRA Grants - - - - N/A - N/A Total Rev YTD 7,372,225$ 7,596,252$ 7,680,968$ 308,742$ 4%84,716$ 1% Total Rev Annual 7,436,309$ 7,758,200$ YTD %99%98%99% Note: Includes CJ Sales Tax and FD25 & FD40 contracts 17 018 018 Actual Budget Actual $%$% Crim Just Sales Tax 2,808,564$ 2,782,404$ 3,091,020$ 282,456$ 10%308,616$ 11% Judicial Contribution 16,707 - 16,533 (174) -1%16,533 100% Crim Just - High Crime 272,857 257,557 284,633 11,776 4%27,076 11% Crim Just - Pop 28,640 24,725 29,781 1,141 4%5,056 20% Crim Just - Spec Prog 103,951 91,690 107,640 3,688 4%15,950 17% State DUI 15,352 17,514 15,182 (170) -1%(2,332) -13% Marijuana Distribution - - 266,706 266,706 100%266,706 100% Liquor Profits 855,262 850,000 850,985 (4,278) -1%985 0% Liquor Excise Tax 488,280 453,299 519,189 30,910 6%65,890 15% Fuel Tax 1,491,829 1,464,980 1,528,930 37,100 2%63,950 4% YTD Total 6,081,444$ 5,942,169$ 6,710,599$ 629,155$ 10%768,430$ 13% Annual Total 6,081,444$ 5,942,169$ State Shared Revenues 018 vs. 17 Revenue Year to Date through December 018 vs. Budget Monthly Financial Report December 2018 Page | 7 Preliminary as of 03/01/2019 Charges for Services These revenue sources consist of general government, public safety, plan review and inspection, culture and recreation, and interfund/interdepartmental sales and services. Recreation and interfund/interdepartmental sales and services constitute 64% of the total revenue in this category. The year-to-date total charges for services are $8.5M or 97% of the budget. The following sections provide detail information for Public Safety, Recreation, and Interfund Services. Public Safety Services YTD Total: $1.2M Year-to-Year YTD Variance: $371K, 44% Actual-to-Budget YTD Variance: $591K, 96% Narrative: The variance with the prior year is due to collecting large reimbursements for the School Resource Officer program. October’s boost in revenue was the result of police private sector overtime and other intergovernmental law enforcement services. Recreation Current Month Actual: $0 YTD Total: $1.5M Budgeted YTD: $1.8M Prior Year Same Month: $46K Prior Year YTD Total: $1.7M Year-to-Year Monthly Variance: $(-46K), -100% Year-to-Year YTD Variance: $(-213K), -12% Actual-to-Budget Monthly Variance: $(-45K), -100% Actual-to-Budget YTD Variance: $(-251K), -14% Narrative: The total year-to-year variance is primarily related to aquatic center fees ($106K less than PY YTD) and community center self-sustaining program fees being behind prior year figures. The budget to actual variance is primarily being driven by aquatic center fees and community center activity fees (non-instructor). 17 018 018 Actual Budget Actual $%$% Jan 64,424$ 57,002$ 224,932$ 160,509$ 249%167,930$ 295% Feb 68,705 56,753 60,888 (7,817) -11%4,136 7% Mar 148,707 69,703 82,789 (65,918) -44%13,086 19% Apr 61,399 37,896 58,572 (2,827) -5%20,676 55% May 63,815 37,767 77,233 13,418 21%39,467 105% Jun 43,374 75,004 84,800 41,426 96%9,796 13% Jul 59,850 31,948 92,695 32,845 55%60,748 190% Aug 58,114 34,576 50,236 (7,878) -14%15,660 45% Sep 53,908 40,957 78,189 24,281 45%37,232 91% Oct 52,056 71,643 187,194 135,137 260%115,550 161% Nov 77,748 49,060 68,008 (9,740) -13%18,948 39% Dec 85,628 55,327 142,886 57,258 67%87,559 158% YTD Total 837,728$ 617,635$ 1,208,422$ 370,694$ 44%590,787$ 96% Annual Total 837,728$ 617,635$ 018 vs. Budget Month 018 vs. 17 Year to Date through December Public Safety Services 17 018 018 Actual Budget Actual $%$% Jan 152,350$ 165,916$ 138,388$ (13,962)$ -9%(27,528)$ -17% Feb 38,452 45,377 51,694 13,243 34%6,317 14% Mar 65,420 66,147 55,300 (10,121) -15%(10,847) -16% Apr 74,806 98,371 70,321 (4,486) -6%(28,050) -29% May 84,381 82,203 82,814 (1,568) -2%611 1% Jun 153,304 206,297 191,108 37,804 25%(15,189) -7% Jul 482,458 423,801 419,790 (62,669) -13%(4,011) -1% Aug 382,296 384,147 313,627 (68,669) -18%(70,520) -18% Sep 135,476 127,601 76,421 (59,055) -44%(51,180) -40% Oct 49,113 49,764 72,092 22,979 47%22,328 45% Nov 58,320 66,466 37,924 (20,395) -35%(28,542) -43% Dec 45,946 44,831 (104) (46,050) -100%(44,936) -100% YTD Total 1,722,323$ 1,760,923$ 1,509,375$ (212,948)$ -12%(251,548)$ -14% Annual Total 1,722,323$ 1,760,923$ 018 vs. Budget018 vs. 17 Month Recreation Year to Date through December Monthly Financial Report December 2018 Page | 8 Preliminary as of 03/01/2019 Interfund Services YTD Total: $3.9M Year-to-Year YTD Variance: $(-16K), 0% Actual-to-Budget YTD Variance: $(-461K), -11% Narrative: 2018’s monthly budgets are based on 1/12th of the annual budget. The majority of these revenues are related to indirect cost allocations, which are internal administrative costs. The remaining costs consist of Development Services division’s inspection fees, Parks Planning and Natural Resources division’s capital investment program reimbursements, Transportation division’s capital investment program reimbursements, and Maintenance division’s street maintenance reimbursements. Fines and Penalties YTD Total: $4.3M Year-to-Year YTD Variance: $1.3M, 45% Actual-to-Budget YTD Variance: $227K, 6% Narrative: These revenue sources contain civil (penalties, infractions, and parking), criminal (traffic, non-traffic, and costs), and non-court fines, forfeitures, and penalties. The table below breaks down these fines by type. Positive trends in the revenue generated from the photo enforcement program is closing the actual-to- budget variance, and would expect to be a positive variance by year-end. 17 018 018 Actual Budget Actual $%$% Jan 330,774$ 363,424$ 341,804$ 11,030$ 3%(21,619)$ -6% Feb 319,851 363,424 344,339 24,488 8%(19,084) -5% Mar 377,192 363,424 378,470 1,278 0%15,046 4% Apr 332,180 363,424 332,894 714 0%(30,530) -8% May 332,543 363,424 328,765 (3,778) -1%(34,659) -10% Jun 322,435 363,424 320,735 (1,699) -1%(42,689) -12% Jul 314,856 363,424 236,427 (78,430) -25%(126,997) -35% Aug 295,921 363,424 313,949 18,028 6%(49,474) -14% Sep 350,908 363,424 314,193 (36,715) -10%(49,231) -14% Oct 321,038 363,424 330,901 9,863 3%(32,522) -9% Nov 316,488 363,424 332,981 16,492 5%(30,443) -8% Dec 302,147 363,424 324,948 22,801 8%(38,476) -11% YTD Total 3,916,334$ 4,361,086$ 3,900,407$ (15,927)$ 0%(460,678)$ -11% Annual Total 3,916,334$ 4,361,086$ 018 vs. Budget Month Interfund Services Year to Date through December 018 vs. 17 17 018 018 Actual Budget Actual $%$% Jan 134,957$ 206,614$ 141,625$ 6,668$ 5%(64,989)$ -31% Feb 217,056 309,853 224,814 7,759 4%(85,039) -27% Mar 212,186 331,630 312,111 99,925 47%(19,518) -6% Apr 242,816 340,209 137,934 (104,882) -43%(202,275) -59% May 229,877 312,735 230,762 885 0%(81,973) -26% Jun 302,666 401,048 235,311 (67,354) -22%(165,737) -41% Jul 247,260 328,975 451,443 204,183 83%122,468 37% Aug 298,685 374,734 624,200 325,516 109%249,466 67% Sep 220,425 291,346 461,645 241,220 109%170,299 58% Oct 274,245 363,684 582,058 307,813 112%218,374 60% Nov 240,739 361,754 465,852 225,114 94%104,098 29% Dec 325,938 423,905 405,436 79,498 24%(18,469) -4% YTD Total 2,946,849$ 4,046,487$ 4,273,192$ 1,326,344$ 45%226,705$ 6% Annual Total 2,946,849$ 4,046,487$ Month 018 vs. Budget018 vs. 17 Year to Date through December Fines and Penalties by Month Year to Date through December 17 018 018 Actual Budget Actual $%$% Civil Penalties 2,178$ 5,500$ 1,686$ (492)$ -23%(3,814)$ -69% Civil Infraction Penalties 341,971 330,500 352,243 10,272 3%21,743 7% Civil Parking Infraction Penalties 189,474 250,582 179,112 (10,362) -5%(71,470) -29% Photo Enforcement Program 2,124,399 3,216,405 3,463,040 1,338,642 63%246,635 8% Criminal Traffic Misdemeanor Fines 77,052 73,000 69,225 (7,827) -10%(3,775) -5% Criminal Non-Traffic Fines 77,363 58,000 70,072 (7,291) -9%12,072 21% Criminal Costs 86,958 90,500 94,230 7,272 8%3,730 4% Non-Court Fines, Forfeitures and Penalties 47,454 22,000 43,586 (3,868) -8%21,586 98% YTD Total 2,946,849$ 4,046,487$ 4,273,192$ 1,326,344$ 45%226,705$ 6% Annual Total 2,946,849$ 4,046,487$ Revenue 018 vs. Budget Fines and Penalties by Type 018 vs. 17 Monthly Financial Report December 2018 Page | 9 Preliminary as of 03/01/2019 Included in the Fines and Penalties revenue budget is $3.2M from the Photo Enforcement program. The monthly budget is based on the prior year’s revenue. The year-to- date collections from this program equates to $3.5M. The associated costs includes the equipment provided by American Traffic Solutions, Inc. (ATS), dedicated 1 FTE in the Court Services Department to process the increased caseload and 1.1 FTEs in the Police Department for support services. This staff time, along with a 50% pro tem budget and interpreter costs amounts to $329K for personnel costs. The total costs for the program equates to $1.2M which is represented in the table. Due to the timing of when the invoice was received, January 2018’s equipment rental cost was recorded in February. Miscellaneous YTD Total: $2.7M Year-to-Year YTD Variance: $188K, 8% Actual-to-Budget YTD Variance: $662K, 33% Narrative: This revenue source reflects the collection of interest and other earnings, rents, leases, and concessions, contributions, and donations from private sources, and other miscellaneous revenues. Though the year was started due to a large variance in Seizure Funds collected in 2017 and a lack there of in 2018, in May 2018 $227K in Seizure Funds were collected resulting in a large positive variance. Seizure Funds are restricted to drug enforcement only and are not available for general operating purposes. 17 018 018 Actual Budget Actual $%$% Jan 363,997$ 228,614$ 262,690$ (101,308)$ -28%34,076$ 15% Feb 148,988 132,647 150,608 1,620 1%17,961 14% Mar 150,954 123,364 178,170 27,216 18%54,806 44% Apr 188,887 132,886 152,700 (36,186) -19%19,814 15% May 152,678 125,481 386,715 234,037 153%261,233 208% Jun 179,152 148,520 193,674 14,522 8%45,154 30% Jul 193,718 184,843 221,279 27,561 14%36,436 20% Aug 198,576 165,804 275,725 77,148 39%109,920 66% Sep 151,310 142,354 164,873 13,563 9%22,518 16% Oct 156,212 125,703 200,817 44,604 29%75,114 60% Nov 125,698 97,379 174,068 48,370 38%76,689 79% Dec 468,107 396,924 305,276 (162,832) -35%(91,648) -23% YTD Total 2,478,278$ 2,004,520$ 2,666,594$ 188,316$ 8%662,074$ 33% Annual Total 2,478,278$ 2,004,520$ Year to Date through December Month 018 vs. Budget018 vs. 17 Miscellaneous Revenues by Month 17 018 018 Actual Budget Actual $%$% Interests and Other Earnings 1,155,371$ 875,300$ 1,189,995$ 34,624$ 3%314,695$ 36% Rents, Leases, and Concessions 634,897 631,003 673,666 38,769 6%42,663 7% Contributions/Donations from Private Sources 177,919 242,595 197,221 19,302 11%(45,374) -19% Other 333,588 255,622 256,577 (77,011) -23%955 0% Seizure Funds - Federal/State/Local 176,503 - 349,134 172,631 98%349,134 100% YTD Total 2,478,278$ 2,004,520$ 2,666,594$ 188,316$ 8%662,074$ 33% Annual Total 2,478,278$ 2,004,520$ 018 vs. Budget Miscellaneous Revenues by Type Year to Date through December Revenue 018 vs. 17 Favorable 8 Budget 8 Actual 8 Budget 8 Actual (Unfavorable)1 Jan 204,207$ 136,853$ 124,941$ 27,432$ 109,421$ Feb 250,698 154,588 124,941 95,186 59,402 Mar 261,123 179,033 124,941 95,195 83,838 Apr 259,635 122,862 124,941 95,195 27,667 May 250,855 171,477 124,941 95,189 76,288 Jun 326,983 155,145 124,941 95,186 59,959 Jul 258,813 385,533 124,941 27,432 358,101 Aug 298,847 495,241 124,941 117,185 378,056 Sep 218,520 408,660 124,941 117,192 291,467 Oct 299,333 505,220 124,941 117,195 388,025 Nov 291,494 404,192 124,941 126,700 277,492 Dec 295,896 344,236 124,941 225,957 118,279 YTD Total 3,216,405$ 3,463,040$ 1,499,297$ 1,235,046$ 2,227,994$ Annual Total 3,216,405$ 1,499,297$ 1Actuals of Revenues and Expenses Photo Enforcement Program Year to Date through December Month Revenues Expenses Monthly Financial Report December 2018 Page | 10 Preliminary as of 03/01/2019 EXPENSES Overall, the City has expended 95.3% of its budgeted general governmental expenditures at the end of December. This is $4.8M or 4.9% below year-to-date budgeted expenditures. See below for summary of unfavorable items for general governmental departments. Museum is over the year-to-date budget by $4K or 1.8%. This is due to over spending on intermittent salaries and wages ($3K) and associated intermittent benefits of ($1K). Council, Executive, Community and Economic Development, and Public Works Admin are all reflecting a negative variance on their respective expenditures; however, these differences as a percentage are negligible. Monthly Financial Report December 2018 Page | 11 Preliminary as of 03/01/2019 ENTERPRISE FUNDS The table below gives an analysis of all City Enterprise funds. Displayed are the year-to-date revenues and expenditures for each enterprise. Included in each funds are the capital revenues and expenditures. Airport Golf Course Solid Waste Utility Water Utility Wastewater Utility Surface Water Utility Metro REVENUES: Licenses and permits - - - - 83,660 58,350 - Grants / intergovernmental 111,927 5,259 83,779 - - 1,001,342 - Charges for services 291,873 1,879,699 18,527,911 17,979,915 10,760,832 11,767,053 16,815,804 Interdepartmental services - - - - - - - Fines and penalties 316 - - - 694 - - Rents, leases, and misc fees 3,074,662 436,966 7,675 226,056 - - - Interest and other misc 56,328 13,393 34,159 1,416,425 1,239,172 496,591 70,493 TOTAL REVENUES 3,535,106 2,335,317 18,653,524 19,622,396 12,084,358 13,323,336 16,886,297 EXPENSES: Utility billing - - 41,592 160,368 130,232 198,133 - Utility systems - - 18,967,775 4,179,349 3,585,234 3,774,229 - Utility maintenance - - 366,554 5,929,351 2,242,646 3,095,859 16,463,648 Transportation 1,932,242 - - - - - - Golf - 2,228,977 - - - - - TOTAL EXPENSES 1,932,242 2,228,977 19,375,921 10,269,068 5,958,112 7,068,221 16,463,648 AMOUNT AVAILABLE FOR DEBT SERVICE 1,602,864 106,340 (722,397) 9,353,328 6,126,246 6,255,115 422,649 DEBT SERVICE: Principal - - - 1,470,810 567,574 435,602 - Interest - - - 289,881 131,261 658,810 - TOTAL DEBT SERVICE - - - 1,760,691 698,835 1,094,412 - CAPITAL PROJECTS 62,857 797 - 3,490,574 3,956,631 2,736,804 - TRANSFERS IN/(OUT)(13,820) - (1,582) (12,656) (1,582) (2,575) - CHANGE IN FUND BALANCE 1,526,187 105,543 (723,979) 4,089,407 1,469,198 2,421,324 422,649 BEGINNING FUND BALANCE, Jan 1 3,459,189 5,267 3,000,312 33,913,567 17,410,002 13,934,705 5,089,769 ENDING FUND BALANCE, Nov 30 4,985,376 110,810 2,276,333 38,002,974 18,879,200 16,356,029 5,512,418 Monthly Financial Report December 2018 Page | 12 Preliminary as of 03/01/2019 INTERNAL SERVICE FUNDS The table below gives an analysis of all City Internal Service Funds. Displayed are the year-to-date revenues and expenditures for each internal service. Included in each fund are the capital revenues and expenditures. Equipment Rental Information Technology Facilities Communications Insurance Healthcare Retiree Healthcare REVENUES: Technology Fee - 266,824 - - - - - Grants / intergovernmental - - - - - - 45,754 Charges for services Equipment rental m&o 2,895,866 4,368,744 - - - - - Print and mail - - - 444,510 - - - Communications - 820,102 - 663,125 - - - Facilities - - 5,085,446 - - - - Data cards and cell phones - - - - - - - IT service contracts - - - - - - - Interest and other misc 83,174 46,828 19,840 8,357 231,394 60,037 166,532 Internal service fund misc: Vehicle / equipment capital recovery 2,082,253 210,789 - - - - - Insurance premiums - - - - 1,729,676 - - Worker's comp/unemployment - - - - 1,415,634 - - Benefit premiums - - - - - 9,406,055 2,624,684 Other misc 345 50 22 - - 963,466 - Interfund Loan - - - - - - - Capital contributions - - - - - - - Disposal of capital assets 74,250 - - - - - - Insurance recoveries - - - - 282,391 - - TOTAL REVENUES 5,135,888 5,713,337 5,105,308 1,115,992 3,659,095 10,429,558 2,836,970 EXPENSES: Communications 628,181 Equipment rental 2,726,928 Facilities 5,128,675 Healthcare 10,787,535 Information technology 5,355,811 Print and mail 410,363 Retiree healthcare 847,686 Risk management: Risk management 1,926,607 Unemployment 53,371 Worker's compensation 1,055,182 TOTAL EXPENSES 2,726,928 5,355,811 5,128,675 1,038,544 3,035,160 10,787,535 847,686 AMOUNT AVAILABLE FOR CAPITAL 2,408,960 357,526 (23,367) 77,448 623,935 (357,977) 1,989,284 CAPITAL PROJECTS 4,102,372 469,498 49,063 - - - - TRANSFERS IN 1,307,000 309,321 25,542 - - - - TRANSFERS (OUT)(3,190) - (107,000) - (7,910) - - CHANGE IN FUND BALANCE (389,602) 197,349 (153,888) 77,448 616,025 (357,977) 1,989,284 BEGINNING FUND BALANCE, Jan 1 6,882,620 3,737,060 1,530,747 608,145 17,731,130 4,617,488 11,887,344 ENDING FUND BALANCE, Nov 30 6,493,018 3,934,409 1,376,859 685,593 18,347,155 4,259,511 13,876,628 Monthly Financial Report December 2018 Page | 13 Preliminary as of 03/01/2019 FUND BALANCE Page 14 shows the ending fund balance as of December 2018. The City’s fund balance is a combination of current deficit/surplus of funds which have accrued from unexpended operating budgets, unanticipated excess revenues, and from balances accumulated from prior years. The prior year’s balances (or beginning balance) include funds identified as being reserved for specific purposes or required to meet the current year’s appropriations. These balances also provide financial stability to the City’s operation during uncertain times and provide a layer of security to bondholders. At the end of December, the City has $42.7M reported in the combined general governmental fund balance of the current year’s operating budget, which is approximately 53.0% of budgeted operating expenditures. This is an increase of $9.4M from the year’s beginning balance. December’s ending fund balance is over the anticipated General Governmental Fund Balance of $32.3M by $10.4M or 32.2%. At this time last year, the fund balance was 21.3% above the projected year-to-date budget, and the overage in fund balance for the month of December compared to this time last year is very similar ($10.4M for 2018 vs $12.3M for 2017). CONTACT INFORMATION This report is prepared by the Finance Division of the Administrative Services 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 us at mgordon@rentonwa.gov or JDThomas@Rentonwa.gov. Monthly Financial Report December 2018 Page | 14 Preliminary as of 03/01/2019 City of Renton All Funds - Revenue, Expenditures and Fund Balances Cash Basis through December 31, 2018 Funds Balance 01/01/018 Budgeted Revenue Revenue 12/31/18 Total Funds Available Budgeted Expenditure Expenditure 12/31/18 Ending Balance GENERAL GOVERNMENT FUNDS:33,284,838 101,326,000 106,944,483 140,229,321 102,295,638 97,521,463 42,707,859 000 General 22,708,066 69,528,727 76,163,288 98,871,354 69,635,582 67,048,955 31,822,399 001 Community Services 4,840,993 13,785,144 13,349,165 18,190,158 13,878,699 12,819,943 5,370,214 003 Street 3,143,904 11,163,240 11,207,264 14,351,168 11,773,231 11,227,768 3,123,400 004 Community Dev Block Grant 54,286 913,366 243,037 297,323 953,367 372,034 (74,711) 005 Museum 70,992 239,129 239,818 310,810 241,246 245,590 65,220 009 Farmers Market 105,323 100,175 99,829 205,152 110,269 110,988 94,164 201 Ltd GO Bonds Gen Govt Debt 863,732 - 11,134 874,866 - 127 874,740 215 Gen Govt Misc Debt Service 1,497,542 5,596,219 5,630,949 7,128,491 5,703,244 5,696,058 1,432,433 SPECIAL REVENUE FUNDS:2,093,053 1,976,224 2,455,418 4,548,471 2,140,392 1,846,094 2,702,377 102 Arterial Street 108,438 670,000 725,233 833,671 670,000 670,000 163,671 108 Leased City Properties 611,055 967,550 1,053,304 1,664,359 983,406 837,540 826,819 110 Hotel Motel 461,434 226,000 547,598 1,009,032 335,629 286,645 722,387 125 1% For Art 103,109 15,000 16,337 119,446 53,683 - 119,446 127 Cable Communication 472,489 97,674 108,579 581,068 97,674 51,909 529,159 135 Springbrook Wetlands Bank 336,528 - 4,367 340,895 - - 340,895 CAPITAL PROJECT FUNDS (CIP):36,295,483 28,873,451 23,369,629 59,665,112 49,714,407 15,503,387 44,161,725 303 Community Services Mitigation 1,909,355 86,500 668,901 2,578,256 - - 2,578,256 304 Fire Mitigation 936,972 99,000 661,672 1,598,644 142,975 142,975 1,455,669 305 Transportation Mitigation 810,962 632,400 3,026,562 3,837,524 505,000 505,000 3,332,524 316 Municipal Facilities CIP 19,671,696 11,248,128 12,369,633 32,041,329 27,083,301 7,970,967 24,070,362 317 Transportation CIP 5,808,539 16,807,423 6,318,065 12,126,604 21,627,131 6,634,290 5,492,314 326 Housing Opportunity 2,548,975 - 33,228 2,582,203 25,000 - 2,582,203 336 New Library Development 451,093 - 5,510 456,603 - 12 456,591 346 New Family First Center Dvlpmnt 4,157,891 - 286,058 4,443,949 331,000 250,143 4,193,806 ENTERPRISE FUNDS:76,812,811 88,718,828 86,550,336 163,363,147 136,108,306 77,240,003 86,123,144 4X2 Airport Operating & CIP 3,459,189 3,637,862 3,535,107 6,994,296 6,209,762 2,008,919 4,985,377 403 Solid Waste Utility 3,000,312 19,505,718 18,653,524 21,653,836 19,477,264 19,377,503 2,276,333 4X4 Golf Operating & CIP 5,267 2,287,213 2,405,318 2,410,585 2,287,585 2,299,773 110,812 4X5 Water Operating & CIP 33,913,567 17,420,439 19,622,396 53,535,963 42,826,090 15,532,989 38,002,974 4X6 Waste Water Operating & CIP 17,410,002 10,103,577 12,124,358 29,534,360 21,691,422 10,655,159 18,879,201 416 King County Metro 5,089,769 17,505,693 16,886,297 21,976,066 17,505,693 16,463,648 5,512,418 4X7 Surface Water Operating & CIP 13,934,705 18,258,326 13,323,336 27,258,041 26,110,490 10,902,012 16,356,029 INTERNAL SERVICE FUNDS:46,994,534 30,937,136 35,638,010 82,632,544 35,078,484 33,659,372 48,973,172 501 Equipment Repair/Replacement 6,882,620 6,306,622 6,442,888 13,325,508 8,139,462 6,832,490 6,493,018 502 Insurance 17,731,130 3,307,514 3,659,094 21,390,224 3,315,116 3,043,070 18,347,154 503 Information Services 3,737,060 5,747,430 6,022,658 9,759,718 7,460,742 5,825,309 3,934,409 504 Facilities 1,530,747 5,023,713 5,130,850 6,661,597 5,384,024 5,284,738 1,376,859 505 Communications 608,145 1,102,300 1,115,992 1,724,137 1,106,329 1,038,544 685,593 512 Insurance, Healthcare 4,617,488 8,191,708 10,429,558 15,047,046 8,578,084 10,787,535 4,259,511 522 Insurance, Leoff1 Retirees HC 11,887,344 1,257,849 2,836,970 14,724,314 1,094,727 847,686 13,876,628 FIDUCIARY FUNDS:5,832,897 468,000 1,506,710 7,339,607 200,475 192,624 7,146,983 611 Firemen's Pension 5,832,897 468,000 1,506,710 7,339,607 200,475 192,624 7,146,983 TOTAL FUNDS 201,313,616 252,299,639 256,464,586 457,778,202 325,537,702 225,962,943 231,815,260