HomeMy WebLinkAbout2018 CAFR - City of RentonCity of Renton
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Comprehensive Annual Financial Report
For the year ended December 31, 2018
i
CITY OF RENTON
2018
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For Year Ended December 31, 2018
Administrative Services Department
City of Renton
1055 South Grady Way
Renton, Washington 98057
(425) 430‐6858
Website: www.rentonwa.gov
ii
ACKNOWLEDGEMENTS
Prepared by the Finance Division of the
Administrative Services Department
Administrative Services Administrator
Jan Hawn
Fiscal Services Director
Jamie Thomas
Accounting Staff
Misty Baker, Senior Finance Analyst
Jen Becht, Financial Services Supervisor
Tom Brown, Senior Finance Analyst
Sean Hollingsworth, Finance Analyst II
Nate Malone, Tax & Licensing Program Manager
Hai Nguyen, Senior Finance Analyst
Kari Roller, Financial Services Manager
Terri Weishaupt, Accounting Supervisor
Print and Mail Coordinator
Karl Hurst
TABLE OF CONTENTS
DECEMBER 31, 2018
ITEM PAGE
iii
INTRODUCTORY SECTION
Letter of Transmittal ..................................................................................................................................... 1‐1
2017 Comprehensive Annual Financial Report Award ................................................................................. 1‐6
Corporate Organization Structure & Reporting Relations ............................................................................ 1‐7
FINANCIAL SECTION
Independent Auditor’s Report .................................................................................................................... 2‐1
Management Discussion and Analysis ........................................................................................................ 3‐1
Basic Financial Statements:
Government‐wide Financial Statements:
Statement of Net Position ............................................................................................................... 4‐1
Statement of Activities .................................................................................................................... 4‐2
Fund Statements:
Governmental Fund Financial Statements:
Balance Sheet .................................................................................................................................. 4‐3
Reconciliation of Balance Sheet to the Statement of Net Position ................................................. 4‐4
Statement of Revenues, Expenditures and Changes in Fund Balances ........................................... 4‐5
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities .................................... 4‐6
Proprietary Fund Financial Statements:
Statement of Net Position ............................................................................................................... 4‐7
Statement of Revenues, Expenses, and Changes in Net Position ................................................... 4‐8
Statement of Cash Flows ................................................................................................................. 4‐9
Fiduciary Fund Statements:
Statement of Fiduciary Net Position ............................................................................................. 4‐11
Statement of Changes in Fiduciary Net Position ........................................................................... 4‐12
Notes to Financial Statements:
Note 1: Significant Accounting Policies ........................................................................................ 4‐13
Note 2: Deposits and Investments ............................................................................................... 4‐26
Note 3: Property Taxes ................................................................................................................. 4‐30
Note 4: Capital Assets and Depreciation ...................................................................................... 4‐31
Note 5: Pensions ........................................................................................................................... 4‐34
Note 6: Other Post Employment Benefits .................................................................................... 4‐48
Note 7: Contingencies .................................................................................................................. 4‐52
Note 8: Risk Management ............................................................................................................ 4‐52
Note 9: Interfund Transactions ..................................................................................................... 4‐54
Note 10: Long Term Debt .............................................................................................................. 4‐56
Note 11: Joint Ventures ................................................................................................................. 4‐59
Note 12: Airport Leases ................................................................................................................. 4‐62
Note 13: Capital Lease ................................................................................................................... 4‐62
Note 14: Tax Abatement ............................................................................................................... 4‐63
Note 15: Change in Accounting Principle ...................................................................................... 4‐64
Note 16: Subsequent Events ......................................................................................................... 4‐65
Required Supplementary Information Other than MD&A:
Schedule of Revenues, Expenditures, and Changes in Fund Balance ‐ Budget and Actual
General Fund ................................................................................................................................... 5‐1
TABLE OF CONTENTS
DECEMBER 31, 2018
ITEM PAGE
iv
Notes to Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
General Fund ................................................................................................................................... 5‐2
Schedule of the City’s Proportionate Share of the Net Pension Liability ‐ PERS Plan 1 ......................... 5‐4
Schedule of the City’s Proportionate Share of the Net Pension Liability ‐ PERS Plan 2/3 ..................... 5‐5
Schedule of the City’s Proportionate Share of the Net Pension Liability ‐ PSERS Plan 2 ....................... 5‐6
Schedule of the City’s Proportionate Share of the Net Pension Liability ‐ LEOFF Plan 1 ....................... 5‐7
Schedule of the City’s Proportionate Share of the Net Pension Liability ‐ LEOFF Plan 2 ....................... 5‐8
Schedule of Employer Contributions ‐ WA Department of Retirement Systems .................................. 5‐9
Schedule of Changes in Net Pension Liability and Related Ratios ‐ Firefighters’ Pension Fund .......... 5‐10
Schedule of Employer Contributions ‐ Firefighters’ Pension Fund ...................................................... 5‐11
Schedule of Investment Returns ‐ Firefighters’ Pension Fund ............................................................. 5‐12
Schedule of Changes in Total OPEB Liability and Related Ratios………………………………. .................... ...5‐13
Combining Statements and Other Supplementary Information
Non‐Major Fund Descriptions ................................................................................................................ 6‐1
Combining Governmental Balance Sheet ‐ Nonmajor Governmental Funds
Summary by Fund Type ................................................................................................................... 6‐5
Combining Balance Sheet ‐ Nonmajor Capital Projects Funds .............................................................. 6‐6
Combining Balance Sheet ‐ Nonmajor Debt Service Funds ................................................................... 6‐7
Combining Balance Sheet ‐ Nonmajor Special Revenue Funds ............................................................. 6‐8
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ‐ Nonmajor
Governmental Funds Summary by Fund Type ................................................................................ 6‐9
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Nonmajor
Capital Projects Funds ................................................................................................................... 6‐10
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Nonmajor
Debt Service Funds ........................................................................................................................ 6‐11
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Nonmajor
Special Revenue Funds .................................................................................................................. 6‐12
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
General – Community Services ...................................................................................................... 6‐13
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
General ‐ Streets ............................................................................................................................ 6‐14
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
General – Community Development Block Grant ......................................................................... 6‐15
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
General ‐ Museum ......................................................................................................................... 6‐16
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
General – Farmer’s Market ........................................................................................................... 6‐17
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
General – Leased City Properties .................................................................................................. 6‐18
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
Municipal Facilities CIP .................................................................................................................. 6‐19
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
Municipal Facilities CIP – Housing Opportunity and Economic Development Revolving Fund .... 6‐20
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
Municipal Facilities CIP – New Library Development .................................................................... 6‐21
TABLE OF CONTENTS
DECEMBER 31, 2018
ITEM PAGE
v
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
Municipal Facilities CIP – Family First Center ................................................................................ 6‐22
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
Capital Improvement ..................................................................................................................... 6‐23
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
Community Development Impact Mitigation ................................................................................ 6‐24
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
Transportation Impact Mitigation ................................................................................................. 6‐25
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
General Debt ................................................................................................................................. 6‐26
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
Arterial Street ................................................................................................................................ 6‐27
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
Hotel/Motel Tax ............................................................................................................................ 6‐28
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
1% for Art ....................................................................................................................................... 6‐29
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
Cable Communications Development ........................................................................................... 6‐30
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
Springbrook Wetlands Bank .......................................................................................................... 6‐31
Combining Statement of Net Position, Nonmajor Enterprise Funds ................................................... 6‐32
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ‐
Nonmajor Enterprise Funds ........................................................................................................... 6‐33
Combining Statement of Cash Flows ‐ Nonmajor Enterprise Funds .................................................... 6‐34
Combining Statement of Net Position, Internal Service Funds ............................................................ 6‐36
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position,
Internal Service Funds ................................................................................................................... 6‐37
Combining Statement of Cash Flows, Internal Service Funds .............................................................. 6‐38
STATISTICAL SECTION
Statistical Section Description ................................................................................................................ 7‐1
Financial Trends:
Table 1: Net Position by Component ................................................................................................. 7‐2
Table 2: Changes in Net Position ........................................................................................................ 7‐3
Table 3: Fund Balance of Governmental Funds ................................................................................. 7‐5
Table 4: Changes in Fund Balance of Governmental Funds ............................................................... 7‐6
Revenue Capacity:
Table 5: Water Utility Systems Revenue Information ........................................................................ 7‐7
Table 6: Principal Rate Payers ............................................................................................................ 7‐8
Table 7: Water Utility Rates ............................................................................................................. 7‐11
Table 8: General Government Tax Revenue by Source .................................................................... 7‐14
Table 9: Principal Property Tax Payers ............................................................................................. 7‐15
Table 10: Assessed Value of Taxable Property ................................................................................... 7‐16
Table 11: Property Tax Rates Direct and Overlapping Governments ................................................ 7‐17
Table 12: Property Tax Levies and Collections ................................................................................... 7‐18
Table 13: Sales Tax Collections by Sector ........................................................................................... 7‐19
TABLE OF CONTENTS
DECEMBER 31, 2018
ITEM PAGE
vi
Debt Capacity:
Table 14: Ratios of Outstanding Debt by Type ................................................................................... 7‐20
Table 15: Legal Debt Margin Information .......................................................................................... 7‐21
Table 16: Ratios of General Bonded Debt Outstanding to Assessed Value ....................................... 7‐22
Table 17: Direct and Overlapping Governmental Activities Debt ...................................................... 7‐23
Table 18: Pledged‐Revenue Coverage ................................................................................................ 7‐24
Demographic and Economic Information:
Table 19: Demographic and Economic Statistics ................................................................................ 7‐25
Table 20: Principal Employers ............................................................................................................ 7‐26
Operating Information:
Table 21: Full Time Equivalent City Government Employees by Function ......................................... 7‐27
Table 22: Operating Indicators by Function ....................................................................................... 7‐28
Table 23: Utility Systems Supplemental Operating Information ....................................................... 7‐29
Table 24: Capital Assets Statistics by Function ................................................................................... 7‐30
June 19, 2019
Honorable Denis Law, Mayor
Members of the Renton City Council
Residents of Renton
City of Renton, Washington
Mr. Mayor, Honorable Councilmembers, and Citizens of Renton:
We are pleased to present the City’s Comprehensive Annual Financial Report for the year ended
December 31, 2018. The City maintains a system of internal controls designed to provide reasonable
assurance that assets are safeguarded against loss or unauthorized use, and that financial records can
be relied upon to produce accurate and fairly presented financial statements in accordance with
generally accepted accounting principles.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report. To the best of our knowledge and belief, the enclosed financial statements
and all supporting schedules are accurate in all material respects and are reported in a manner
designed to present fairly the financial position and results of operations of the City. The concept of
reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be
derived, and the evaluation of the relative costs and benefits of the control system requires estimates
and judgments by management.
These financial statements have been audited by the Washington State Auditor’s Office. This
independent audit was conducted in accordance with generally accepted auditing standards and
generally accepted government auditing standards to provide an independent assessment of fair
presentation of the City’s financial position. The State Auditor’s Office has issued an unmodified
(“clean”) opinion on the City’s financial statements, which is included at the front of the financial
statement section of this report.
Management’s Discussion and Analysis (MD&A) immediately follows the State Auditor’s report and
provides a narrative introduction, overview, and analysis to accompany the basic financial statements.
This letter of transmittal is designed to complement the MD&A and should be read in conjunction with
it.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Introduction, 1-1
PROFILE OF THE CITY
Incorporated on September 6, 1901, Renton is a city in King County, Washington. Situated 11 miles
southeast of downtown Seattle, 5 miles from SeaTac Airport, Renton straddles the southeast shore of
Lake Washington, at the junction of key north‐south and east‐west transportation corridors. The City’s
early economy was based on coal mining, clay production, and timber export. Today, Renton is best
known as the final assembly point for the Boeing 737 family of commercial airplanes, but it is also
home to a growing number of well‐known manufacturing, technology, health care service companies
and government institutions, including Boeing, Paccar, Wizards of the Coast gaming, Ikea Home
Furnishing, Valley Medical Center, Providence Health & Services, Kaiser Permanente, The Seattle
Seahawks headquarters, Seattle Branch of Federal Reserve Bank, and FAA Northwest Regional office.
The City of Renton has a strong mayor form of government with an appointed Chief Administrative
Officer. The Mayor is independently elected to a four‐year term. The Mayor’s job is to manage day‐to‐
day operations, and to lead policy development and implementation with the seven‐member City
Council elected at large on a non‐partisan basis.
With a population of 104,100 in 2018, Renton is the 8th largest city in the state, and the 4th largest in
King County. The City provides a full range of municipal services to an incorporated area of 24.03
square miles. These services include police, street construction and maintenance, planning and zoning,
municipal court, general administrative services, municipal airport, golf course, and parks and
recreational facilities that includes an aquatic center, senior center, community center, two
neighborhood centers, and a museum.
The City operates four utilities: water, sewer, surface water, and contracts out its solid waste
collection. These are operated very similar to a private business where the revenues from rates and
other direct sources must pay for the operational, capital, and long‐term debt costs. The City has its
own water supplies and does not rely on purchased water to meet normal service demands. The City’s
sewage is treated by King County, but the City is responsible for transferring and maintaining the
system to King County. The City bills Renton residents a monthly fee for the cost of sewer treatment
performed by King County.
Since the 2011‐12 biennium, the City has adopted a biennial budget. The Council is required to adopt
an initial budget for the biennium no later than December 31 preceding the beginning of the fiscal year
on January 1. The City of Renton maintains budgetary controls to ensure compliance with legal
provisions embodied in the budget. All activities are appropriated through the budget process and
published in the City’s Budget document. The City Council must adopt an ordinance to increase or
decrease total appropriations in a Fund. The Mayor has the authority to move appropriations within a
Fund.
A more thorough discussion of the City’s accounting policies can be found under the Summary of
Significant Accounting Policies in the Notes to the Financial Statements.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Introduction, 1-2
ECONOMIC CONDITION AND OUTLOOK
Renton’s economy continues to thrive. In terms of employment, the Puget Sound region has outpaced
national results in 2018 with an overall employment growth rate of 7% and an unemployment rate of
3.7%. Employment growth during this time frame is largely attributable to the expansion of service
industry, healthcare, and construction activity in Renton.
A staple of Renton’s economy is the presence of the Boeing Company, which operates out of the
Renton Municipal Airport. Boeing initiates its maiden 737 MAX flights from this airport, where an
average of 47 airplanes are constructed and delivered each month. The company anticipates this
production number will increase to 56 planes per month by 2019.
The healthcare industry continues to expand in Renton. The industry has grown around the national
award‐winning hospital, Valley Medical Center, which employs approximately 3,300 employees. A new
five‐story, 160,000 square foot medical office building with a cancer clinic, radiation treatment,
outpatient surgery clinic, general office space, and a parking garage expansion was completed in late
2018. In addition, Kaiser Permanente moved into their new 29‐acre, four‐building, administrative
campus in Renton in late 2017, adding an estimated 1,200 new jobs to Renton, once fully staffed.
The City of Renton is following the regional trend of a strong recovery in the housing sector, with
assessed value increasing 11.9% for existing homes in 2018. Residential building permits are expected
to remain steady with 1,000 new units expected by 2020, leading to an expected annual population
growth of 1.6 percent.
The City of Renton saw strong sales and retail tax revenue growth in 2018 with taxable sales 8.0% over
2017. The services and construction sectors are driving this overall growth, which is the result of
continued investment in office, retail, hotel, and residential development in the Southport area; and
expansion in the healthcare industry.
The Seattle Seahawks’ headquarters/training facility is located within the City and is the second‐largest
facility in the NFL at 200,000 square feet, located along the waterfront of Lake Washington. The
training facility sits 3 miles north of The Landing, a shopping center that was fully completed in early
2010. Currently, the shopping center occupancy is at 99% and approximately $1.1 million in sales tax
was generated from The Landing in 2018, a 44% increase over 2011.
Perhaps the most significant economic impact for the City is the wide diversity of development activity
and private investment that is continues to take place within the City. In the South Lake Washington
area, just north of The Landing, a new waterfront Hyatt Regency hotel with 355 rooms and 730,000
square feet of class A office space and ground floor retail space; The Sartori Elementary School is a
three story, 79,000 square foot STEM focused school opened in the fall of 2018 and can accommodate
up to 650 students; and an addition to an existing assisted living facility which will add an additional 30
assisted living units, 24 memory care units, common areas, and new ground floor amenities.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Introduction, 1-3
Overall, the economic outlook for Renton remains strong for 2019 and beyond; a continuing increase in
housing permits, a lower unemployment rate, and large‐scale capital investments within the City will
support a healthy growth in taxable retail sales and an attractive center for healthcare, retail, and
manufacturing.
LONG‐TERM FINANCIAL PLANNING
Unrestricted fund balance (the aggregate of committed, assigned, and unassigned components of
fund balance) in the General Fund was 60 percent of the total General Fund expenditures, compared
to 46 percent in 2017. In addition to unrestricted fund balance in the General Fund, the City Council
has accumulated fund balances of $17.6 million for catastrophic reserves, anti‐recessionary reserves,
and sales tax annexation credit transition in the City’s Insurance Fund.
The ramp‐up of these fund balances was a direct result of an enhanced stabilization fund policy, which
was originally adopted in late‐2013. During the great recession the City depleted much of its reserves
and although several economic factors are improving, the City still faces several short and long‐term
constraints. The rate of healthcare and salary costs and deferred maintenance on City buildings
continue to increase at a faster rate than revenues. In addition, the 10‐year sales tax annexation credit
has sunset, in mid‐2018, which provided approximately $2.4 million in sales tax revenue to the General
Fund. The enhanced stabilization fund policy will help the City bridge the ever increasing gap between
operating expenditures and revenues.
As part of the enhancements to the City’s stabilization policy, the Council also adopted a reserve fund
for Economic Development, which currently has accumulated a $2.5 million balance. The reserve fund
will help the City leverage Local Revitalization Financing (LRF) funds made available by the State of
Washington through a local sales tax option levy. The LRF program offers $500,000 to be used in
approved revitalization areas. The City issued bonds for infrastructure improvements needed in the
revitalization area in early 2019 and the debt service will be paid by the annual $500,000 local sales tax
option levy.
As part of the 2015‐2016 biennial budget, the City Council adopted a Business and Occupation (B&O)
Tax, effective January 1, 2016. The B&O tax was structured in a way to minimize the impact to the
business community, while at the same time generating enough sustainable revenue for funding
General Fund operations into the future, without significant decreases to basic City services. The B&O
tax generated $9.1 million in additional General Fund revenue for 2018.
The City has been very responsible and responsive in balancing the services the community needs
with the changing mixture and level of resources. In addition to strong financial policies, the City has
also continued to expand its economy and pursue progressive economic development strategies to
maintain a thriving and sustainable economy.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Introduction, 1-4
RELEVANT FINANCIAL POLICIES
The City has adopted a comprehensive set of financial policies, including a multi‐tiered stabilization
policy that ensures available reserves for future General Fund funding gaps, long‐term economic
development initiatives, capital commitments, equipment reserves, catastrophic and anti‐recessionary
reserves, and general operating cash flow requirements.
Due to strong financial policies, management, and economic factors, the City of Renton received an
upgraded LTGO bond rating of AAA by Standard and Poor’s in March 2019.
OTHER INFORMATION
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Renton for its
comprehensive annual financial report for the fiscal year ended December 31, 2017. The City has a
long history of achieving this prestigious award. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized comprehensive annual financial
report. This report must satisfy both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program’s
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
The dedicated staff of the Finance Division work hard each day to ensure that the City’s financial
transactions are processed accurately and records are maintained orderly and in conformance with
policies and procedures. Special thanks are due to Misty Baker, Senior Finance Analyst, who served as
the CAFR project lead. Further appreciation is extended to the City Council and City Management for
their support in conducing financial operations of the City in a sound and progressive manner, and in
conformance with internal and external requirements.
For more information regarding the City’s budget please refer to the City’s website for 2019‐2020
adopted budget as well as monthly sales tax and budgetary financial reports.
Respectfully,
Jamie Thomas
Fiscal Services Director
2018 Comprehensive Annual Financial Report City of Renton, Washington
Introduction, 1-5
GovernmentFinanceOfficersAssociationCertificateofAchievementforExcellenceinFinancialReportingPresentedtoCity ofRentonWashingtonForitsComprehensive AnnualFinancialReportfortheFiscal YearEndedDecember31,2017ExecutiveDirector/CEO2018 Comprehensive Annual Financial ReportCity of Renton, WashingtonIntroduction, 1-6
ADMINISTRATIVE SERVICES
Jan Hawn, Administrator
425‐430‐6858
RENTON CITIZENS
MAYOR
Denis Law
425‐430‐6500
MUNICIPAL COURT JUDGE
Terry Jurado
425‐430‐6550
CITY COUNCIL
Don Persson, President
Armondo Pavone, Randy Corman,
Ruth Perez, Carol Ann Witschi,
Ryan McIrvin
425‐430‐6500
CHIEF ADMINISTRATIVEOFFICER
Robert Harrison
425‐430‐6500
COMMUNITY SERVICES
Kelly Beymer, Administrator
425‐430‐6600
PUBLIC WORKS
Gregg Zimmerman, Administrator
425‐430‐7394
EXECUTIVE
COMMUNITY AND ECONOMIC
DEVELOPMENT
Chip Vincent, Administrator
425‐430‐6580
POLICE
Ed VanValey, Chief
425‐430‐7503
HUMAN RESOURCES & RISK
MANAGEMENT
Ellen Bradley‐Mak, Administrator
425‐430‐7650
Facilities
Jeffrey Minisci, Director
Renton History Museum
Elizabeth Stewart, Manager
Golf Course
Doug Mills, Manager
Maintenance Services
Michael Stenhouse, Director
Utility Systems
Ronald Straka, Director
Transportation Systems
Jim Seitz, Director
Economic Development
Cliff Long, Director
Long Range Planning
Angie Mathias, Manager
Planning
Mayor's Office
City Clerk / Cable Manager
Jason Seth, City Clerk
Public Affairs
Preeti Shridhar, Deputy Public
Affairs Administrator
Support Operations Bureau
Field Operations Bureau
Emergency Management
Deborah Needham, Director
Human Resources
Kim Gilman, Manager
Risk Management
Gary Lamb, Manager
Benefits
VACANT, Manager
Finance
Jamie Thomas, Director
Information Technology
Mehdi Sadri, Director
Staff Services
Special Operations
Investigations
Administrative
Services
Patrol Services
Patrol Operations
CITY ATTORNEY
Shane Maloney, Administrator
425‐255‐8678
Parks and Trails
Cailin Hunsaker, Director
Human Services
Guy Williams, Manager
Parks Planning and Natural
Resources
Leslie Betlach, Director
Recreation and Neighborhoods
Maryjane Van Cleave, Director Jennifer Henning, Director
Airport
Harry Barrett, Jr., Manager Building Official
Craig Burnell
Organizational Development
Kristi Rowland, Manager
2018 Comprehensive Annual Financial Report City of Renton, Washington
Introduction, 1-7
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2018 Comprehensive Annual Financial Report City of Renton, Washington
Introduction, 1-8
Insurance Building, P.O. Box 40021 Olympia, Washington 98504-0021 (360) 902-0370 Pat.McCarthy@sao.wa.gov
Office of the Washington State Auditor
Pat McCarthy
INDEPENDENT AUDITOR’S REPORT ON FINANCIAL STATEMENTS
June 19, 2019
Mayor and City Council
City of Renton
Renton, Washington
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund and the aggregate remaining fund information of the City of Renton, as of
and for the year ended December 31, 2018, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the City’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund
and the aggregate remaining fund information of the City of Renton, as of December 31, 2018, and the
respective changes in financial position and, where applicable, cash flows thereof for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Matters of Emphasis
As discussed in Note 1 to the financial statements, in 2018, the City adopted new accounting guidance,
Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions and Statement No. 84, Fiduciary Activities. Our opinion
is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and required supplementary information listed in the table of contents be
presented to supplement the basic financial statements. Such information, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board who considers
it to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The combining financial statements and schedules are
presented for the purposes of additional analysis and are not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the financial statements. This
information has been subjected to auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated, in
all material respects, in relation to the basic financial statements taken as a whole.
Our audit was conducted for the sole purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements as a whole. The Introductory and Statistical
Sections are presented for purposes of additional analysis and are not a required part of the basic financial
statements of the City. Such information has not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on it.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we will also issue our report dated June 19, 2019,
on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements and other
matters. That report will be issued under separate cover in the City’s Single Audit Report. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and
compliance.
Sincerely,
Pat McCarthy
State Auditor
Olympia, WA
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2018 Comprehensive Annual Financial Report City of Renton, Washington
Independent Auditor's Report, 2-4
MANAGEMENT’S DISCUSSION AND ANALYSIS
The City of Renton’s management offers this Management’s Discussion and Analysis (MD&A), which is
an overview and analysis of the City of Renton’s financial activities for the year ended December 31,
2018. To best understand the City’s financial activities, we encourage readers to consider the
information in this discussion and analysis in conjunction with information provided in the letter of
transmittal and the basic financial statements.
FINANCIAL HIGHLIGHTS
• As of December 31, 2018, the City of Renton’s total assets and deferred outflows of resources
exceed liabilities and deferred inflows of resources by $951 million. Of this amount, $152
million represents unrestricted net position, which may be used to meet the government’s
ongoing obligations to citizens and creditors.
• The City of Renton’s total net position increased $18.2 million, net of a $35.5 million reduction
for a change in accounting principle (GASB 75). This increase was due to accumulation of
reserves and capital asset acquisitions in both the governmental and business‐type activities.
• At the close of the current fiscal year, the City of Renton’s governmental funds reported
combined fund balances of $98 million, an increase of $15.7 million from 2017. This increase is
due to revenues exceeding expenditures in the general fund – approximately $9 million more
in taxes collected than budgeted.
• Approximately 42 percent ($41 million) of the total governmental fund balance is available for
spending at the City’s discretion (unassigned fund balance).
• Total unrestricted fund balance (the total of committed, assigned and unassigned fund balance
components) for the general fund was $50.6 million, which is approximately 58 percent of
general fund 2018 expenditures.
• The City of Renton’s total outstanding long‐term debt decreased by $18.5 million during the
current fiscal year because the City’s Net Pension Liability decreased and current resources
and grants are being used to finance current operations and capital projects, which includes
paying down its current debt obligations without issuance of new debt.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis provided here are intended to serve as an introduction to the City’s basic
financial statements. The basic financial statements consist of three components: (1) government‐
wide financial statements, (2) fund financial statements, and (3) notes to the basic financial
statements.
Government‐wide Financial Statements
The government‐wide financial statements provide both long‐term and short‐term information about
the City’s overall financial status, in a manner similar to a private‐sector business.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Management's Discussion and Analysis, 3-1
Statement of Net Position – The first of these government‐wide statements is the statement of net
position. The statement of net position presents the City’s assets, liabilities, and deferred
inflows/outflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating.
Statement of Activities – The second government‐wide statement is the statement of activities, which
reports how the City’s net position changed during the current fiscal year. All changes in net position
are reported as soon as the underlying event giving rise to the change, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported for some items that will only result in
cash flows in future fiscal periods (ex. uncollected taxes and compensated absences). An important
purpose of the design of the statement of activities is to show the financial reliance of the City’s
distinct activities or functions on revenues provided by the City’s taxpayers. Another indicator to
consider when evaluating the financial position of the City includes changes to the property tax base,
general economic conditions as demonstrated through business licenses fees or sales tax revenue, and
the condition of the City’s infrastructure (roads, drainage systems, bridges, and water infrastructure).
Both of the government‐wide financial statements distinguish governmental activities of the City
(activities principally supported by taxes and intergovernmental revenue), and business‐type activities
of the City (activities that are intended to recover all, or a significant portion, of their costs through
user fees and charges). Governmental activities include general government, judicial, public safety,
utilities, transportation, economic environment, health and human services, and culture and
recreation. The equipment rental and insurance internal service funds are also reported as
governmental activities. The business‐type activities include the waterworks utility, solid waste,
airport, and golf course funds. The government‐wide financial statements can be found on page 4‐1
and 4‐2 of this report.
Fund Financial Statements
The City uses fund structure to ensure and demonstrate fiscal integrity and compliance with finance‐
related legal requirements. A fund is a group of related accounts used to maintain control over
resources that have been segregated for specific activities and objectives. There are three types of
funds: governmental, proprietary, and fiduciary. The fund financial statements focus on major funds
separately while all others are combined into a single aggregated presentation. Individual data for
non‐major funds is presented in a following section, Combining Statements.
Governmental Funds – The governmental funds are used to account for the same functions reported
as governmental activities in the government‐wide financial statements. However, unlike the
government‐wide statements, the focus of governmental fund financial statements is on near‐term
inflows and outflows of available financial resources and on balances of resources available at the end
of the fiscal year. Such information is useful in evaluating whether there are more or less financial
resources that can used in the near future to finance City services. The basic governmental fund
financial statements can be found on pages 4‐3 and 4‐5 of this report.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Management's Discussion and Analysis, 3-2
Because the focus of governmental fund financial statements is a narrower view than that of the
government‐wide financial statements, it is useful to compare similar information in order to gain a
better understanding of the long‐term impact of the government’s near‐term financing decisions. The
Reconciliation of the Balance Sheet and Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of the Governmental Funds reconciles to the differences between the
governmental fund statements and the governmental activities column in the government‐wide
statements.
The City maintains eleven individual governmental funds. Information for the City’s major
governmental funds (general and municipal facilities CIP) are presented separately in the
governmental fund balance sheet and the governmental fund statement of revenues, expenditures,
and changes in fund balance. Data from the other nine funds are combined into a single aggregated
presentation. Individual fund data for each of these non‐major governmental funds is presented in the
combining statements section of this report.
The City maintains budgetary controls over its governmental funds. Budgetary controls ensure
compliance with legal provisions embodied in the annual appropriated budget. Governmental fund
budgets are established in accordance with state law and are adopted on a fund level. A budgetary
comparison statement has been provided for the general fund to demonstrate compliance with this
budget.
Proprietary Funds – The proprietary fund statements present information for two types of funds.
Enterprise funds operate as business‐type activities in the government‐wide statements and include
the waterworks utility, solid waste, golf course, and airport funds. The other proprietary fund types are
internal service funds. Internal service funds are used to report activities that provide supplies and
services to various City departments and to allocate the associated costs of providing these services to
the various governmental and enterprise functions. The revenues and expenses of internal service
funds that support governmental activities are eliminated in the government‐wide statements and the
remaining activity is combined within the governmental activities in the government‐wide statements.
The proprietary fund statements provide the same information as the government‐wide financial
statements, only in more detail. The City reports the activity of its two major enterprise funds,
waterworks utility (water, wastewater, and storm water) and solid waste separately. Information from
the remaining non‐major enterprise funds are combined and presented in a single, aggregated column
in the fund statements. Internal service funds are also aggregated and reported separately in this
section. The basic proprietary fund financial statements can be found on pages 4‐7 through 4‐10 of
this report.
Fiduciary Funds – Fiduciary Funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reported in the government‐wide financial
statements because the resources of those funds are not available to support the City’s own
operations. The accounting used for fiduciary funds is much like that used for proprietary funds. The
fiduciary fund financial statements can be found on pages 4‐11 and 4‐12 of this report.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Management's Discussion and Analysis, 3-3
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the information
provided and are an integral part of the government‐wide and fund financial statements. The notes
to the financial statements can be found pages 4‐13 through 4‐65 of this report.
Other information
In addition to the basic finance statements and accompanying notes, this report also presents:
1. Required Supplemental Information (RSI)
RSI provides budgetary comparisons for the general fund budget to actual, as well as the City’s
funding progress for the Firefighters’ Pension Trust Fund and Other Post‐Employment Benefits
(LEOFF 1 Retiree Medical). RSI can be found on page 5‐1 through 5‐13 of this report.
2. Combining Statements
The combining statements provide additional detail for other government funds, internal service
funds, and fiduciary funds. Combining and individual fund statements and schedules can be found
on page 6‐1 through 6‐39 of this report.
3. Statistical Information
This section includes unaudited trends and demographic information. The statistical section can be
found on page 7‐1 through 7‐31 of this report.
GOVERNMENT‐WIDE FINANCIAL ANALYSIS
Statement of Net Position
The following is a summary of the City’s net position as of December 31, 2018, with comparison to
2017:
2018 2017 2018 2017 2018 2017
Current assets 163,534,069$ 147,589,138$ 96,741,964$ 86,666,175$ 260,276,033$ 234,255,313$
Capital assets 488,940,606 484,573,780 309,346,796 307,804,835 798,287,402 792,378,615
Other non‐current assets 57,956,684 52,616,279 86,411 120,798 58,043,095 52,737,077
TOTAL ASSETS 710,431,359 684,779,197 406,175,171 394,591,808 1,116,606,530 1,079,371,005
Deferred Outflows of Resources 5,090,387 5,191,388 1,631,657 1,877,598 6,722,044 7,068,986
Long‐term liabilities 115,150,600 93,744,324 29,361,720 33,812,966 144,512,320 127,557,290
Other liabilities 12,760,866 14,871,880 4,035,953 4,635,007 16,796,819 19,506,887
TOTAL LIABILITIES 127,911,466 108,616,204 33,397,673 38,447,973 161,309,139 147,064,177
Deferred Inflows of Resources 9,480,480 5,721,668 1,620,824 979,849 11,101,304 6,701,517
NET POSITION:
473,667,290 466,996,814 285,507,078 281,531,560 759,174,368 748,528,374
Restricted 36,805,133 31,304,501 2,810,145 2,810,145 39,615,278 34,114,646
Unrestricted 67,657,377 77,331,398 84,471,108 72,699,879 152,128,485 150,031,277
TOTAL NET POSITION 578,129,800$ 575,632,713$ 372,788,331$ 357,041,584$ 950,918,131$ 932,674,297$
Net Investment in Capital Assets
Governmental Activities Business‐type Activities
CONDENSED STATEMENT OF NET POSITION
Total
As noted earlier, the change in net position over time, may serve as a useful indicator of a government’s
financial situation. At the close of the most recent fiscal year, assets and deferred outflows of resources
exceeded liabilities and deferred inflows of resources by $951 million, an $18.2 million increase over 2017.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Management's Discussion and Analysis, 3-4
Net Position – Net Investment in Capital
Assets. $759 million (80%) of total net
position reflects the City’s investment in
capital, net of related debt that was used
to acquire those assets. The City uses
these assets to provide a variety of services
to citizens. Accordingly, these assets are
not available for future spending.
Although investment in capital assets are
reported net of related debt, it should be
noted that the resources used to repay this
debt must be provided from other sources,
since the capital assets themselves cannot
be used to liquidate these liabilities.
Net Position – Restricted. Total restricted
net position accounts for $39.6 million of
the City’s net position, which is a $5.5
million increase (16%) from 2017. This
increase is a result of a $3.6 million
increase in net pension assets and an
increased balance of restricted revenue
sources that have not been spent (REET, KC
Parks Levy, Impact Mitigation Fees). Many
of the restricted revenue sources have
been budgeted for capital projects that
have been carried forward for expenditure
in 2019.
Net Position – Unrestricted. The remaining
$152 million of net position is unrestricted
may be used to meet the government’s
ongoing obligations for governmental and
business type activities ($67.7 million and
$84.5 million, respectively).
At the end of the current fiscal year, the
City reports a positive net position in all
net position categories, for both
governmental activities and business‐type
activities. The same held true for the prior
fiscal year. Further, all categories of net
position increased in the current fiscal year.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Management's Discussion and Analysis, 3-5
Statement of Activities and Change in Net Position
The following is a condensed summary statement of activities and change in net position as of
December 31, 2018, with comparison to 2017.
CONDENSED STATEMENT OF ACTIVITIES
2018 2017 2018 2017 2018 2017
Revenues:
Program revenues:
Charges for services 24,707,174$ 22,132,787$ 82,556,915$ 78,977,661$ 107,264,089$ 101,110,448$
Operating grants and contributions 6,921,332 5,984,222 572,719 1,213,388 7,494,051 7,197,610
Capital grants and contributions 5,700,805 10,167,007 6,285,279 7,664,875 11,986,084 17,831,882
Taxes and other general revenues:‐
Property taxes 19,046,123 24,669,058 ‐ ‐ 19,046,123 24,669,058
Sales taxes 33,564,285 33,381,395 ‐ ‐ 33,564,285 33,381,395
Other Taxes 38,007,776 37,328,687 ‐ ‐ 38,007,776 37,328,687
Other general revenue 4,226,563 3,269,074 1,122,902 531,557 5,349,465 3,800,631
Total revenues 132,174,058 136,932,230 90,537,815 88,387,481 222,711,873 225,319,711
Expenses:
General government 11,693,087 11,619,780 ‐ ‐ 11,693,087 11,619,780
Judicial 2,612,931 2,631,350 ‐ ‐ 2,612,931 2,631,350
Public safety 35,406,820 34,970,381 ‐ ‐ 35,406,820 34,970,381
Utilities 675,076 686,356 ‐ ‐ 675,076 686,356
Transportation 18,828,845 18,369,818 ‐ ‐ 18,828,845 18,369,818
Economic and natural environment 7,514,571 8,280,445 ‐ ‐ 7,514,571 8,280,445
Health and human services 2,260,902 2,210,690 ‐ ‐ 2,260,902 2,210,690
Culture and recreation 13,802,266 14,307,593 ‐ ‐ 13,802,266 14,307,593
Interest on long‐term debt 1,077,950 1,146,722 ‐ ‐ 1,077,950 1,146,722
Airport ‐ ‐ 2,713,567 3,178,004 2,713,567 3,178,004
Golf Course ‐ ‐ 2,277,544 2,386,006 2,277,544 2,386,006
Solid Waste ‐ ‐ 19,648,560 19,367,124 19,648,560 19,367,124
Waterworks Utility ‐ ‐ 50,408,232 51,849,388 50,408,232 51,849,388
Total expenses 93,872,448 94,223,135 75,047,903 76,780,522 168,920,351 171,003,657
38,301,610 42,709,095 15,489,912 11,606,959 53,791,522 54,316,054
Transfers (256,835) 218,212 256,835 (218,212) ‐ ‐
Increase (decrease) in net position 38,044,775 42,927,307 15,746,747 11,388,747 53,791,522 54,316,054
Net position ‐ beginning 575,632,713 533,392,778 357,041,584 345,652,837 932,674,297 879,045,615
Prior Period Adjustment ‐ (687,372) ‐ ‐ ‐ (687,372)
Change in Accounting Principle (35,547,688) ‐ ‐ ‐ (35,547,688) ‐
Net position ‐ ending 578,129,800$ 575,632,713$ 372,788,331$ 357,041,584$ 950,918,131$ 932,674,297$
Governmental Activities Business‐type Activities Total
Increase in net position before transfers
Citywide revenue. Total revenue (governmental and business‐type) decreased by $2.6 million, or 1.9
percent. Most which is attributed to a $5.6 million decrease in property tax (Governmental Activities)
and a $5.8 million decrease in capital grants and contributions (Governmental Activities), and offset by
a $6.1 million increase in charges for services (Business‐type and Governmental Activities). The
property tax decline is a result of the creation of the Renton Regional Fire Authority in 2016. As
promised, City made a final decrease in its 2018 levy by approximately $5.5 million to help defray the
cost of the new Fire Benefit Charge which is a new levy assessed by the Renton Regional Fire
Authority.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Management's Discussion and Analysis, 3-6
The $5.8 million decrease in capital grants and contributions is a result of an overall decrease in grant
revenues, but there are three large grant funded transportation projects that came to a close in
2017/early 2018: Carr Road Improvements (capital grant), Main Avenue South Conversion(capital
grant), and the 116th Avenue SE improvements (capital grant).
Citywide expenses. Expenses totaled $169 million in 2018, a $2 million decrease from 2017. Business‐
type expenses decreased by $1.7 million was due to a large loss on abandoned infrastructure reported
in 2017 which didn’t reoccur in 2018.
Change in net position. The resulting change in net position was an increase in 2018 by $53.8 million: a
$4.9 million decrease from governmental activities and offset by a $4.4 million increase from business‐
type activities. The decrease in governmental activities and increase business‐type activities is related
to revenue and expenditure variances explained above.
Governmental Activities Analysis
Governmental activities cost a total of $92.8 million in 2018 against program generated revenue
(excluding taxes and other general revenue) of $37.3 million. Program revenues support 40 percent of
the governmental program costs, while the remaining 60 percent of governmental program costs are
supported by general revenues (taxes and other general revenue). Compared to 2017, governmental
activities cost decreased $.2 million and program revenues increased $1 million.
Chart 1 portrays the extent that the cost of each of the City’s governmental programs is supported by
its own program generated revenue (fees, intergovernmental revenues, and contributions specifically
related to that program). Public safety accounts for 38 percent of the total governmental activity
costs, but generates the second lowest percentage of program revenues compared to its program
costs (9 percent). Conversely, judicial recovered all of their costs in 2018 through program revenues,
which consist of traffic citations, parking citations, criminal charges, miscellaneous court fees, and red
light camera fees.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Management's Discussion and Analysis, 3-7
Chart 2 depicts the source breakdown
for all revenues that fund governmental
activities. Approximately 69 percent of
the total governmental activity revenues
come from taxes. The City’s largest
governmental revenue source is other
taxing sources (29 percent), which
consists of Business and Occupation Tax
and Excise Tax. The second largest
source is sales and use tax (25 percent).
Property tax accounts for 15 percent of
the City’s general governmental
revenue, which is a decrease from 22.8%
in 2017. Again, this decrease was the
result of the City’s promise to reduce its
property tax levy by $5.5 million in 2018
with the passage, by voters, to
implement a Regional Fire Authority. The remaining 3 percent, other general revenue, accounts for
interest, and miscellaneous revenue. While program specific charges for services, grants and
contributions generate 28 percent of total revenue for general governmental activities, the City is
largely dependent on tax revenue and as a result, the general economy has a major impact on the
City’s revenue streams.
Business‐Type Activities Analysis
Since the primary source of revenue for business‐type activities is user fees and charges, there is much
less disparity between program costs and related program revenue. Chart 3 shows the expense of
each of the City’s business‐type program along with each programs’ revenue (fees and
intergovernmental revenues specifically related to that program).
The Waterworks Utility generated $57.1 million in fees for services, and the operating and debt service
costs were $50.4 million. In addition, the waterworks utility received $6.6 million in grants,
contributions, and capital
contributions from
developers, for a combined
increase in net position of
$13.2 million. The operating
balance is necessary for
future planned system
infrastructure replacements,
repairs, and enhancements.
Compared to 2017, the
waterworks utility had a $.9
million increase operating
revenue collections and a
$1.4 million decrease
operating expenses.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Management's Discussion and Analysis, 3-8
The Solid Waste Utility generated $19.8 million in total revenue and incurred $19.6 million in program
expenses, resulting in a decrease in net position of $175,000.
The Airport generated a total of $3.6 million in revenue from charges for services and $2.7 million in
expenses 2018, which resulted in a $928,000 decrease in net position.
The Golf Course generated a total of $2.3 million in green fees, driving range charges, and other user
fees. The total expenses for the Golf Course
were $2.3 million. The Golf Course had a
$53,000 increase in net position for the year.
Chart 4 illustrates the source of revenue for
Business‐type activities; which are supported
primarily from charges for services. Charges
for services generated $82.5 million, or 93
percent, of the total revenue sources, while
grant revenue and contributions generated
$6.9 million, or 7 percent, of the total revenue
sources. This is a $3.7 million (5 percent)
increase in charges for services and a $2 million
23 percent) decrease in grants and
contributions from 2017. The large decrease in
grants and contributions is related to a
decrease in developer contributed infrastructure in 2018.
FUND FINANCIAL ANALYSIS
Governmental Funds
The governmental fund statements provide information on near‐term inflows, outflows, and balances
of spendable resources. Such information is useful in assessing the City’s ability to meet financing
requirements in the near term. In particular, unassigned fund balance may serve as a useful measure
of a government’s net resources available for spending at the end of the fiscal year.
General Fund – At the end of the fiscal year, the City had a fund balance of $52 million, which is an
increase of $12.7 million from 2017. Overall, the City’s general fund revenues have actually decreased
$500,000 over 2017 (net effect of increased business and occupation tax and reduction in property
tax), and general fund expenditures have increased by $5 million. However, revenue outpaced the
growth of expenditures, due to conservative budget estimates.
Municipal Facilities CIP Fund – this fund accounts for all of the City’s parks and facilities related capital
projects (new construction, major maintenance, and improvements). Overall revenue decreased $4.4
million over 2017 which was attributed to a large general fund transfer made in 2017 to fund the
construction of Fire Station 15, which was part of the Renton Regional Fire Authority formation
agreement. Expenditures increased $3.3 million, a result of the construction costs related to building
Fire Station 15.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Management's Discussion and Analysis, 3-9
Proprietary Funds
The proprietary fund financial statements provide the same type of information found in the
government‐wide financial statements, but in more detail. The analysis for the proprietary funds is
found within the business‐type activities analysis and discussion above. The proprietary fund
statements also include a column for internal services fund activities in aggregate. These activities are
consolidated with general governmental activities in the government‐wide statements.
GENERAL FUND BUDGETARY HIGHLIGHTS
The City uses a biennial budget process that adopts two one‐year budgets at one time. 2018 was the
second year of the 2017‐18 biennium. The original 2018 general fund adopted budget was $64.8
million and the final adjusted budget was $67.1 million. The increase was mostly attributed to the
second phase of purchases of new police take‐home vehicles ($1.3 million).
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City of Renton’s investment in capital assets, including construction in progress and net of
accumulated depreciation, for governmental and business‐type activities amounts to $798 million as
of December 31, 2018, compared to $792 million in 2017.
CAPITAL ASSETS
(Net of Depreciation/Amortization)
2018 2017 2018 2017 2018 2017
Land and Land Improvements 210,632,400$ 210,672,191$ 6,150,056$ 6,150,056$ 216,782,456$ 216,822,247$
Capital Assets 262,679,896 253,220,774 291,466,408 286,274,853 554,146,304 539,495,627
Intangible Assets 369,075 346,374 997,663 1,043,377 1,366,738 1,389,751
Construction in Progress 15,259,235 20,334,441 10,732,669 14,336,549 25,991,904 34,670,990
Total 488,940,606$ 484,573,780$ 309,346,796$ 307,804,835$ 798,287,402$ 792,378,615$
Governmental Activities Business‐Type Activities Total
The increase of $5.9 million is attributed to a couple of large capital projects. These largest projects
include new construction for the new Sunset EIS Park ($1.5 million), Fire Station 15 construction ($4.4
million), NE 31st Bridge repair ($1.6 million), and Renton Hill Utility Rehabilitation ($4 million). These
increases were offset by $8.7 million in work‐in‐progress reclassifications.
As of December 31, 2018, depreciable capital assets for governmental activities were 39 percent
depreciated, almost the same rate as 2017 (38 percent). This comparison indicates the City is
replacing its assets at almost the same rate that are depreciating, which is a positive indicator. More
detailed capital asset information is provided in Note 4 of the Notes to Financial Statements.
Debt Administration
The City’s total outstanding debt at December 31, 2018, was $144.5 million, an $18.6 million (11
percent) decrease from the prior year which is attributed to the City’s continued commitment to
paying down debt. More detailed debt information is provided in Note 10 of the Notes to Financial
Statements. There was a $10.4 million decrease in employee benefits, which was attributed to the net
decrease in the City’s net pension liability of the State Sponsored pension plan.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Management's Discussion and Analysis, 3-10
2018 2017 2018 2017 2018 2017
General Obligation Bonds 23,245,000$ 27,385,000$ ‐$ ‐$ 23,245,000$ 27,385,000$
Revenue Bonds ‐ ‐ 22,285,000 24,413,168 22,285,000 24,413,168
Other Long‐Term Debt 29,845,813 31,052,617 1,898,266 2,244,083 31,744,079 33,296,700
Unamortized Premium (Discount) 1,460,089 1,708,663 455,572 506,191 1,915,661 2,214,854
Employee Benefits 60,599,697 69,145,731 4,722,882 6,649,524 65,322,579 75,795,255
Total 115,150,599$ 129,292,011$ 29,361,720$ 33,812,966$ 144,512,319$ 163,104,977$
Governmental Activities Business‐Type Activities
LONG‐TERM DEBT
Total
The City’s general obligation debt rating was upgraded to AAA by Standard and Poor in March 2019
and maintains its AA+ revenue bond rating from Fitch (July 2014).
REQUESTS FOR FINANCIAL INFORMATION
This financial report is designed to provide our citizens, creditors, investors, and others interested in
the City’s finances with a general overview of the City’s finances and to show the City’s accountability
for financial resources it receives. If you have any questions about this report or need additional
information, please contact Jan Hawn, Administrative Services Administrator, 1055 South Grady Way,
Renton, WA 98057 or visit our web site at www.rentonwa.gov.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Management's Discussion and Analysis, 3-11
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2018 Comprehensive Annual Financial Report City of Renton, Washington
Management's Discussion and Analysis, 3-12
Governmental
Activities
Business‐type
Activities Total
ASSETS
Current assets:
Cash and cash equivalents $ 118,965,331 $ 70,525,837 $ 189,491,168
Cash with fiscal agent 211,275 ‐ 211,275
Investments at fair value 23,515,912 14,768,626 38,284,538
Receivables (net of allowance for uncollectibles) 20,465,514 8,259,347 28,724,861
Internal balances (13,033) 13,033 ‐
Inventories 216,314 364,976 581,290
Prepayments 172,756 ‐ 172,756
Restricted assets:
Cash and cash equivalents ‐ 2,810,145 2,810,145
Noncurrent assets:
Notes and assessments receivable 1,609,387 86,411 1,695,798
Net pension asset 20,523,747 ‐ 20,523,747
Investment in joint ventures (net) 35,823,550 ‐ 35,823,550
Capital assets not being depreciated:
Land 210,632,400 6,150,056 216,782,456
Construction in progress 15,259,235 10,732,669 25,991,904
Capital assets (net of accumulated depreciation) 262,679,896 291,466,408 554,146,304
Intangible assets (net of accumulated amortization) 369,075 997,663 1,366,738
TOTAL ASSETS 710,431,359 406,175,171 1,116,606,530
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 4,418,507 832,537 5,251,044
Deferred amount on refunding 671,880 799,120 1,471,000
TOTAL DEFERRED OUTFLOWS OF RESOURCES 5,090,387 1,631,657 6,722,044
LIABILITIES
Current liabilities:
Accounts payable and other current liabilities 11,823,686 3,536,219 15,359,905
Interest payable 155,937 46,856 202,793
Unearned revenue 781,243 452,878 1,234,121
Noncurrent liabilities:
Due within one year 8,097,122 3,073,405 11,170,527
Due in more than one year 107,053,478 26,288,315 133,341,793
TOTAL LIABILITIES 127,911,466 33,397,673 161,309,139
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 9,480,480 1,620,824 11,101,304
TOTAL DEFERRED INFLOWS OF RESOURCES 9,480,480 1,620,824 11,101,304
NET POSITION
Net investment in capital assets 473,667,290 285,507,078 759,174,368
Restricted for:
Debt service ‐ 2,810,145 2,810,145
Grants and contributions 690,784 ‐ 690,784
Pensions 20,523,747 ‐ 20,523,747
Special purpose taxes & assessments 15,590,602 ‐ 15,590,602
Unrestricted 67,657,377 84,471,108 152,128,485
TOTAL NET POSITION $ 578,129,800 $ 372,788,331 $ 950,918,131
City of Renton
Statement of Net Position
December 31, 2018
Primary Government
2018 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement.Basic Financial Statements, 4-1
Functions/ProgramsExpenses Charges for ServicesOperating Grants and ContributionsCapital Grants and ContributionsGovernmental ActivitiesBusiness‐type ActivitiesTotalPRIMARY GOVERNMENT:GOVERNMENTAL ACTIVITIES:General government $ 11,693,087 $ 7,172,729 $ 1,600,132 $ 217,878 $ (2,702,348) $ ‐ $ (2,702,348)Judicial 2,612,931 5,480,833 16,533 ‐ 2,884,435 ‐ 2,884,435 Public safety 35,406,820 1,561,148 1,528,536 ‐ (32,317,136) ‐ (32,317,136)Utilities 675,076 ‐ ‐ ‐ (675,076) ‐ (675,076)Transportation 18,828,845 3,568,302 2,950,648 3,855,688 (8,454,207) ‐ (8,454,207)Economic environment 7,514,571 4,747,410 262,416 ‐ (2,504,745) ‐ (2,504,745)Health and human services 2,260,902 ‐ 129,608 ‐ (2,131,294) ‐ (2,131,294)Culture and recreation 13,802,266 2,176,752 433,459 1,627,239 (9,564,816) ‐ (9,564,816)Interest on long‐term debt 1,077,950 ‐ ‐ ‐ (1,077,950) ‐ (1,077,950)TOTAL GOVERNMENTAL ACTIVITIES 93,872,448 24,707,174 6,921,332 5,700,805 (56,543,137) ‐ (56,543,137)BUSINESS‐TYPE ACTIVITIES:Airport 2,713,567 3,503,323 138,021 ‐ ‐ 927,777 927,777 Golf Course 2,277,544 2,329,889 284 ‐ ‐ 52,629 52,629 Solid Waste 19,648,560 19,656,483 167,153 ‐ ‐ 175,076 175,076 Waterworks Utility 50,408,232 57,067,220 267,261 6,285,279 ‐ 13,211,528 13,211,528 TOTAL BUSINESS‐TYPE ACTIVITIES 75,047,903 82,556,915 572,719 6,285,279 ‐ 14,367,010 14,367,010 TOTAL PRIMARY GOVERNMENT $ 168,920,351 $ 107,264,089 $ 7,494,051 $ 11,986,084 (56,543,137) 14,367,010 (42,176,127) 19,046,123 ‐ 19,046,123 33,564,285 ‐ 33,564,285 30,055,917 ‐ 30,055,917 7,951,859 ‐ 7,951,859 2,374,510 1,105,019 3,479,529 938,045 17,883 955,928 914,008 ‐ 914,008 (256,835) 256,835 ‐ 94,587,912 1,379,737 95,967,649 38,044,775 15,746,747 53,791,522 575,632,713 357,041,584 932,674,297 (35,547,688) ‐ (35,547,688) 540,085,025 357,041,584 897,126,609 $ 578,129,800 $ 372,788,331 $ 950,918,131 City of RentonStatement of ActivitiesFor the Year Ended December 31, 2018Net (Expense) Revenue and Changes in Net PositionProgram RevenuesPrimary GovernmentGENERAL REVENUES:Taxes:Property taxesRetail sales taxesBusiness taxesExcise taxesInterest and investment earningsMiscellaneousGain on sale of assetsTRANSFERSTOTAL GENERAL REVENUES, TRANSFERS, AND SPECIAL ITEMSCHANGE IN NET POSITIONNET POSITION ‐ JANUARY 1Effect of change in accounting principleNET POSITION ‐ JANUARY 1 RESTATEDNET POSITION ‐ DECEMBER 312018 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement.Basic Financial Statements, 4-2
General
Municipal Facilities
CIP Total Nonmajor Funds
Total Governmental
Funds
ASSETS
Cash & cash equivalents $ 40,708,147 $ 23,788,456 $ 13,300,869 $ 77,797,472
Cash with fiscal agent 211,275 ‐ ‐ 211,275
Investments at fair value 7,072,027 5,474,477 2,678,650 15,225,154
Receivables, net of allowances:
Taxes 3,847,496 ‐ ‐ 3,847,496
Customer accounts 7,288,376 ‐ 237,263 7,525,639
Accrued interest & penalties 135,746 105,843 59,810 301,399
Notes and assessments receivable 481,022 1,125,957 2,408 1,609,387
Due from other funds 5,000 251,790 481,758 738,548
Due from other governments 6,446,845 278,950 1,826,735 8,552,530
TOTAL ASSETS $ 66,195,934 $ 31,025,473 $ 18,587,493 $ 115,808,900
LIABILITIES
Accounts payable $ 1,337,006 $ 1,394,323 $ 1,298,405 $ 4,029,734
Taxes payable 35,947 ‐ ‐ 35,947
Retainage payable ‐ 355,175 17,084 372,259
Due to other funds 746,581 ‐ 5,000 751,581
Due to other governments 18,673 ‐ ‐ 18,673
Interfund loans payable 350,000 ‐ ‐ 350,000
Custodial accounts 2,502,424 ‐ ‐ 2,502,424
Unearned revenues 188,195 ‐ 593,048 781,243
Wages and benefits payable 2,302,232 ‐ 1,407 2,303,639
TOTAL LIABILITIES 7,481,058 1,749,498 1,914,944 11,145,500
DEFERRED INFLOWS OF RESOURCES
Deferred amount of special assessments ‐ ‐ 2,480 2,480
Unavailable revenues 6,655,101 ‐ 4,000 6,659,101
TOTAL DEFERRED INFLOWS OF RESOURCES 6,655,101 ‐ 6,480 6,661,581
FUND BALANCES (DEFICITS)
Restricted 1,428,578 5,973,636 8,879,172 16,281,386
Committed ‐ 12,510,924 4,614,536 17,125,460
Assigned 9,545,607 10,791,415 3,172,361 23,509,383
Unassigned 41,085,590 ‐ ‐ 41,085,590
TOTAL FUND BALANCES $ 52,059,775 $ 29,275,975 $ 16,666,069 $ 98,001,819
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
FUND BALANCES $ 66,195,934 $ 31,025,473 $ 18,587,493 $ 115,808,900
City of Renton
Balance Sheet
Governmental Funds
December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement.Basic Financial Statements, 4-3
FUND BALANCES ‐ TOTAL GOVERNMENTAL FUNDS $ 98,001,819
Amounts reported for governmental activities in the statement of net position are different because:
Other non‐current assets and deferred outflows of resources used in governmental activities are not
financial resources and, therefore, are not reported in the governmental funds.
Investment in Joint Venture‐SCORE 29,940,739
Investment in Joint Venture‐Valley Communications 5,882,811
Net pension assets 20,523,747
Deferred outflows related to pensions 3,896,294
Deferred outflows related to refundings 671,880 60,915,471
Capital assets used in governmental activities are not financial resources and, therefore, are not reported
in the governmental funds.
Land 210,632,400
Construction in progress 14,987,304
Capital assets (net of accumulated depreciation)251,146,956
Intangible assets (net of accumulated amortization)21,128 476,787,788
Other long‐term assets are not available to pay for current period expenditures and, therefore, are
reported as unavailable revenue in the funds.
Property tax revenue 162,263
Municipal court revenue 776,577
Photo enforcement revenue 5,652,138
Other 70,603 6,661,581
Certain liabilities are not due and payable in the current period and, therefore, are not reported in the
governmental funds.
Interest payable (155,937)
Bonds payable (54,515,053)
Compensated absences (3,134,184)
Net pension liabilities (11,450,804)
Deferred inflows related to pensions (8,463,809) (77,719,787)
Accrued pension expense reported in the governmental funds is not included in the calculation of the net
pension liability.159,532
Internal service funds are used by management to charge the costs of certain activities, such as
equipment rental, self‐insurance, information technology and facility services to individual funds. The
assets and liabilities of the internal service funds are included in the governmental activities in the
statement of net position.13,323,396
NET POSITION OF GOVERNMENTAL ACTIVITIES $ 578,129,800
Reconciliation of the Balance Sheet
To the Statement of Net Position
December 31, 2018
City of Renton
2018 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement.Basic Financial Statements, 4-4
General
Municipal Facilities
CIP Total Nonmajor Funds
Total Governmental
Funds
REVENUES
Taxes $ 79,486,963 $ 3,845,759 $ 7,439,678 $ 90,772,400
Licenses and permits 5,474,457 ‐ 418,457 5,892,914
Intergovernmental revenues 4,864,339 932,700 3,865,192 9,662,231
Charges for services 4,341,997 62,619 3,631,987 8,036,603
Fines and forfeits 4,292,891 ‐ 38,056 4,330,947
Contributions 304,784 267,878 26,000 598,662
Investment earnings 1,143,898 395,453 213,484 1,752,835
Miscellaneous revenue 2,375,518 ‐ ‐ 2,375,518
Total revenues 102,284,847 5,504,409 15,632,854 123,422,110
EXPENDITURES
Current:
General government 11,990,178 277,733 ‐ 12,267,911
Judicial 2,727,689 ‐ ‐ 2,727,689
Public safety 39,761,125 7,318 ‐ 39,768,443
Utilities 244,244 ‐ ‐ 244,244
Transportation 10,087,393 ‐ 2,860,293 12,947,686
Economic environment 7,373,891 8,789 291,645 7,674,325
Health and human services 2,371,428 ‐ ‐ 2,371,428
Culture and recreation 12,188,889 655,320 53,317 12,897,526
Capital outlay:
General government ‐ 313,952 ‐ 313,952
Public safety 33,897 4,445,821 ‐ 4,479,718
Transportation 9,900 100,289 3,813,721 3,923,910
Culture and recreation ‐ 2,644,556 ‐ 2,644,556
Debt service:
Principal payment ‐ ‐ 4,480,075 4,480,075
Interest and fiscal charges ‐ ‐ 1,216,109 1,216,109
Total expenditures 86,788,634 8,453,778 12,715,160 107,957,572
Excess (deficiency) of revenues over expenditures 15,496,213 (2,949,369) 2,917,694 15,464,538
OTHER FINANCING SOURCES (USES)
Transfer in ‐ 1,000,000 1,440,000 2,440,000
Transfers out (2,741,548) ‐ (1,190,000) (3,931,548)
Sale of capital assets 13,000 1,649,460 ‐ 1,662,460
Insurance Recoveries 19,597 ‐ ‐ 19,597
Total other financing sources (uses) (2,708,951) 2,649,460 250,000 190,509
Net change in fund balances 12,787,262 (299,909) 3,167,694 15,655,047
FUND BALANCE ‐ JANUARY 1 39,272,513 29,575,884 13,498,375 82,346,772
FUND BALANCE ‐ DECEMBER 31 $ 52,059,775 $ 29,275,975 $ 16,666,069 $ 98,001,819
City of Renton
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement.Basic Financial Statements, 4-5
NET CHANGES IN FUND BALANCES ‐ TOTAL GOVERNMENTAL FUNDS $ 15,655,047
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost
of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the
amount by which depreciation and amortization expenses and the loss on transfer of capital assets to other
governments exceeded capital outlays.
Capital expenditures 11,362,136
Depreciation and amortization expense (10,236,920)
Book value of capital assets sold (784,341)
Transfer of capital assets to business‐type activities (289,050) 51,825
Governmental funds report pension expenditures when due and payable from current financial resources.
However, in the statement of activities, pension expense is measured by the change in the net pension
assets, net pension liabilities, and related deferred outflows and inflows. This is the net difference in pension
expense.5,173,356
Donations of property and infrastructure from developers are not reported in the governmental funds.
However, in the statement of activities, the fair market value of those assets is recognized as revenue.2,289,547
Revenues in the statement of activities that do not provide current financial resources are not reported as
revenue in the funds. Unavailable revenue increased by this amount.788,901
The issuance of long‐term debt (e.g., bonds, leases) provides current financial resources to governmental
funds, while the repayment of the principle of long‐term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds
report the effect of premiums, discounts, and refundings when debt is first issued, whereas these amounts
are deferred and amortized in the statement of activities. This amount is the net effect of these differences in
the treatment of long‐term debt and related items.4,534,951
Increase (decrease) in Investment in Joint Ventures which do not provide current financial resources and,
therefore, are not reported in the funds.
Equity interest‐SCORE 1,141,371
Equity interest‐Valley Communications 670,091 1,811,462
Internal service funds are used by management to charge the costs of certain activities to individual funds.
The net revenue (expense) of the internal service funds are reported with governmental activities.7,739,686
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 38,044,775
For the Year Ended December 31, 2018
City of Renton
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of the Governmental Funds
To the Statement of Activities
Governmental Activities
2018 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement.Basic Financial Statements, 4-6
Governmental
Activities
Waterworks Utility Solid Waste Total Nonmajor Funds Total Enterprise Funds Internal Service Funds
ASSETS
Current assets:
Cash & cash equivalents $ 63,502,850 $ 2,411,242 $ 4,611,745 $ 70,525,837 $ 41,167,859
Investments at fair value 13,354,716 485,598 928,312 14,768,626 8,290,758
Receivables (net of allowances)
Customer accounts 5,571,511 1,164,025 187,957 6,923,493 62,667
Special assessments 122,617 ‐ ‐ 122,617 ‐
Interest & penalties 270,750 12,858 13,940 297,548 175,783
Interfund loans ‐ ‐ ‐ ‐ 175,000
Due from other funds ‐ ‐ 13,033 13,033 ‐
Due from other governments 693,418 167,153 55,118 915,689 ‐
Supplies inventory 305,980 ‐ 58,996 364,976 216,314
Prepayments ‐ ‐ ‐ ‐ 172,756
Total current assets 83,821,842 4,240,876 5,869,101 93,931,819 50,261,137
Noncurrent assets:
Restricted cash, cash equivalents 2,810,145 ‐ ‐ 2,810,145 ‐
Special assessments 86,411 ‐ ‐ 86,411 ‐
Advances due from other funds ‐ ‐ ‐ ‐ 175,000
Capital assets not being depreciated:
Land 2,682,776 ‐ 3,467,280 6,150,056 ‐
Construction in Progress 10,345,544 ‐ 387,125 10,732,669 271,931
Capital assets, net of accumulated
depreciation/amortization:
Capital assets (net) 268,265,279 ‐ 23,201,129 291,466,408 11,532,940
Intangible assets (net) 997,663 ‐ ‐ 997,663 347,947
Total noncurrent assets 285,187,818 ‐ 27,055,534 312,243,352 12,327,818
TOTAL ASSETS 369,009,660 4,240,876 32,924,635 406,175,171 62,588,955
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 654,413 39,535 138,589 832,537 522,213
Deferred amount on refunding 799,120 ‐ ‐ 799,120 ‐
TOTAL DEFERRED OUTFLOWS OF RESOURCES 1,453,533 39,535 138,589 1,631,657 522,213
LIABILITIES
Current liabilities:
Accounts payable 1,069,160 983,837 183,278 2,236,275 579,604
Claims incurred but not reported ‐ ‐ ‐ ‐ 1,826,850
Retainage payable 252,055 ‐ ‐ 252,055 3,507
Interest payable 46,856 ‐ ‐ 46,856 ‐
Accrued wages and benefits payable 371,464 21,678 91,344 484,486 308,451
Taxes payable 80,460 123,227 7,443 211,130 2,130
Custodial accounts 41,870 ‐ 310,403 352,273 ‐
Unearned revenues 268,244 ‐ 184,634 452,878 ‐
Compensated absences payable 368,711 21,831 92,045 482,587 308,446
Leases payable ‐ ‐ ‐ ‐ 35,849
Public works trust fund loan payable 345,818 ‐ ‐ 345,818 ‐
Revenue bonds payable 2,245,000 ‐ ‐ 2,245,000 ‐
Total current liabilities 5,089,638 1,150,573 869,147 7,109,358 3,064,837
Noncurrent liabilities:
Compensated absences payable 158,188 18,425 33,564 210,177 149,673
Public works trust fund loan payable 1,552,448 ‐ ‐ 1,552,448 ‐
Revenue bonds payable 20,495,572 ‐ ‐ 20,495,572 ‐
Net pension liability 3,167,863 191,380 670,875 4,030,118 2,527,916
OPEB liability ‐ ‐ ‐ ‐ 43,028,675
Total noncurrent liabilities 25,374,071 209,805 704,439 26,288,315 45,706,264
TOTAL LIABILITIES 30,463,709 1,360,378 1,573,586 33,397,673 48,771,101
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 1,274,044 76,969 269,811 1,620,824 1,016,671
TOTAL DEFERRED INFLOWS OF RESOURCES 1,274,044 76,969 269,811 1,620,824 1,016,671
NET POSITION
Net investment in capital assets 258,451,544 ‐ 27,055,534 285,507,078 12,116,969
Restricted 2,810,145 ‐ ‐ 2,810,145 ‐
Unrestricted 77,463,751 2,843,064 4,164,293 84,471,108 1,206,427
TOTAL NET POSITION $ 338,725,440 $ 2,843,064 $ 31,219,827 $ 372,788,331 $ 13,323,396
Business‐type Activities
City of Renton
Statement of Net Position
Proprietary Funds
December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement.Basic Financial Statements, 4-7
Governmental
Activities
Waterworks Utility Solid Waste Total Nonmajor Funds Total Enterprise Funds Internal Service Funds
OPERATING REVENUES
Charges for services $ 56,460,268 $ 19,640,893 $ 2,218,929 $ 78,320,090 $ 32,719,329
Interfund revenues 129,118 7,914 ‐ 137,032 ‐
Miscellaneous revenue 142,010 7,676 3,614,283 3,763,969 268,176
TOTAL OPERATING REVENUES 56,731,396 19,656,483 5,833,212 82,221,091 32,987,505
OPERATING EXPENSES
Supplies 1,199,272 23,800 436,619 1,659,691 2,348,160
Personnel services 10,372,790 774,146 2,206,324 13,353,260 7,147,383
Contracted services 23,624,003 16,609,395 986,820 41,220,218 5,736,055
Insurance ‐ ‐ ‐ ‐ 10,044,318
Taxes 4,779,389 2,241,219 15,626 7,036,234 9,804
Depreciation and amortization 9,075,149 ‐ 1,345,722 10,420,871 2,481,112
TOTAL OPERATING EXPENSES 49,050,603 19,648,560 4,991,111 73,690,274 27,766,832
OPERATING INCOME (LOSS) 7,680,793 7,923 842,101 8,530,817 5,220,673
NONOPERATING REVENUES (EXPENSES)
Intergovernmental revenues 267,261 167,153 138,305 572,719 45,754
Interest revenue 1,010,421 34,878 59,720 1,105,019 621,675
Gain (loss) on capital assets (241,452) ‐ ‐ (241,452) 35,889
Other non‐operating revenue (expenses) 340,266 80 9,804 350,150 4,838
Interest expense (1,116,177) ‐ ‐ (1,116,177) (1,831)
Insurance Recoveries 3,557 ‐ ‐ 3,557 288,925
TOTAL NONOPERATING REVENUES (EXPENSES) 263,876 202,111 207,829 673,816 995,250
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS 7,944,669 210,034 1,049,930 9,204,633 6,215,923
Capital contributions 6,574,329 ‐ ‐ 6,574,329 ‐
Transfer in ‐ ‐ ‐ ‐ 1,531,673
Transfers out (16,813) (1,582) (13,820) (32,215) (7,910)
CHANGE IN NET POSITION 14,502,185 208,452 1,036,110 15,746,747 7,739,686
NET POSITION ‐ JANUARY 1 324,223,255 2,634,612 30,183,717 357,041,584 51,386,541
Effect of change in accounting principle ‐ ‐ ‐ ‐ (45,802,831)
NET POSITION ‐ JANUARY 1 RESTATED 324,223,255 2,634,612 30,183,717 357,041,584 5,583,710
NET POSITION ‐ DECEMBER 31 $ 338,725,440 $ 2,843,064 $ 31,219,827 $ 372,788,331 $ 13,323,396
Business‐type Activities
City of Renton
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement.Basic Financial Statements, 4-8
GOVERNMENTAL
OTHER TOTAL ACTIVITIES
WATERWORKS SOLID ENTERPRISE ENTERPRISE INTERNAL SERVICE
UTILITY WASTE FUNDS FUNDS FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services $ 56,453,800 $ 18,526,239 $ 5,726,845 $ 80,706,884 $ 32,967,394
Cash paid to suppliers for goods & services (30,930,763) (18,568,059) (1,424,196) (50,923,018) (21,347,065)
Cash paid to employees (10,930,732) (788,868) (2,720,815) (14,440,415) (7,704,580)
Other non‐operating receipts 343,823 80 9,804 353,707 293,763
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 14,936,128 (830,608) 1,591,638 15,697,158 4,209,512
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds ‐ ‐ ‐ ‐ 1,531,673
Transfers to other funds (16,813) (1,582) (13,820) (32,215) (7,910)
Operating grants 748,987 83,779 117,187 949,953 45,754
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES 732,174 82,197 103,367 917,738 1,569,517
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Proceeds from the sale of equipment ‐ ‐ ‐ ‐ 74,250
System development charges 1,808,629 ‐ ‐ 1,808,629 ‐
Acquisition & construction of capital assets (8,061,061) ‐ (94,607) (8,155,668) (4,544,925)
Special assessments 347,843 ‐ ‐ 347,843 ‐
Capital grants 309,876 ‐ ‐ 309,876 ‐
Principal payments on debt (2,524,604) ‐ ‐ (2,524,604) (35,130)
Interest payments on debt (1,029,351) ‐ ‐ (1,029,351) (1,831)
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES (9,148,668) ‐ (94,607) (9,243,275) (4,507,636)
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal proceeds from interfund loans ‐ ‐ ‐ ‐ 175,000
Proceeds from sale of investments 3,299,932 348,048 ‐ 3,647,980 2,661,681
Payments for investments ‐ ‐ (33,422) (33,422) ‐
Interest on investments and loans 998,380 35,388 58,877 1,092,645 606,779
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES 4,298,312 383,436 25,455 4,707,203 3,443,460
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS 10,817,946 (364,975) 1,625,853 12,078,824 4,714,853
CASH & CASH EQUIVALENTS, JANUARY 1 52,684,904 2,776,217 2,985,892 58,447,013 36,453,006
RESTRICTED CASH & CASH EQUIVALENTS, JANUARY 1 2,810,145 ‐ ‐ 2,810,145 ‐
TOTAL CASH, RESTRICTED CASH, & CASH
EQUIVALENTS, DECEMBER 31 $ 66,312,995 $ 2,411,242 $ 4,611,745 $ 73,335,982 $ 41,167,859
City of Renton
BUSINESS‐TYPE ACTIVITIES
ENTERPRISE FUNDS
Statement of Cash Flows
Proprietary Funds
Page 1 of 2
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement.Basic Financial Statements, 4-9
GOVERNMENTAL
ACTIVITIES
OTHER TOTAL INTERNAL
WATERWORKS SOLID ENTERPRISE ENTERPRISE SERVICE
UTILITY WASTE FUNDS FUNDS FUNDS
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)$ 7,680,793 $7,923 $ 842,101 $ 8,530,817 $5,220,673
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization 9,075,149 ‐ 1,345,722 10,420,871 2,481,112
Other non‐operating revenue 343,823 80 9,804 353,707 293,763
(Increase) decrease in
accounts receivable (323,775) (1,130,244) (141,522) (1,595,541) (20,111)
Increase (decrease) in due from
other funds ‐ ‐ (13,033) (13,033) ‐
(Increase) decrease in inventory
& prepaid items 17,832 ‐ 12,374 30,206 (30,086)
(Increase) decrease in deferred outflows
related to pensions 67,779 2,457 84,658 154,894 75,602
Increase (decrease) in operating
accounts payable (1,339,835) 358,857 2,016 (978,962) (121,736)
Increase (decrease) in accrued taxes
& other short‐term liabilities (6,096) (52,502) 479 (58,119) (282,750)
Increase (decrease) in
customer deposits 18,100 ‐ 32,256 50,356 ‐
Increase (decrease) in
unearned revenues 28,079 ‐ 15,932 44,011 ‐
Increase (decrease) in
OPEB liability ‐ ‐ ‐ ‐ (2,774,156)
Increase (decrease) in accrued
employee wages and benefits 11,602 9,802 30,279 51,683 27,093
Increase (decrease) in net pension liability
and deferred inflows related to pensions (637,323) (26,981) (629,428) (1,293,732) (659,892)
Total adjustments 7,255,335 (838,531) 749,537 7,166,341 (1,011,161)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES $ 14,936,128 $ (830,608) $ 1,591,638 $ 15,697,158 $ 4,209,512
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Loss on abandonment of capital assets $ 241,452 $‐ $‐ $ 241,452 $‐
Contributions of capital assets $ 5,035,966 $‐ $‐ $ 5,035,966 $‐
Depreciation & amortization $ 9,075,149 $‐ $ 1,345,722 $ 10,420,871 $ 2,481,112
Increase (decrease) in fair value of investments $ (34,712) $$ (2,413) $$(21,550)
City of Renton
BUSINESS‐TYPE ACTIVITIES
ENTERPRISE FUNDS
Statement of Cash Flows
Proprietary Funds
Page 2 of 2
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement.Basic Financial Statements, 4-10
Pension Trust Fund Custodial Fund
ASSETS
Cash & cash equivalents $ 4,457,053 $ 1,207,289
Investments at fair value 3,107,476 243,135
Receivables (net of allowances):
Interest & penalties 2,137,985 4,614
TOTAL ASSETS 9,702,514 1,455,038
LIABILITIES
TOTAL LIABILITIES ‐ ‐
NET POSITION
Restricted for:
Other governments ‐ 1,455,038
Pensions 9,702,514 ‐
TOTAL NET POSITION $ 9,702,514 $ 1,455,038
City of Renton
Statement of Fiduciary Net Position
December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement.Basic Financial Statements, 4-11
Pension Trust Fund Custodial Fund
ADDITIONS
Contributions:
Fire insurance premiums transferred in $ 154,275 $ ‐
Impact fees collected ‐ 644,521
Total contributions 154,275 644,521
Investment earnings:
Interest revenue 121,495 17,051
Total investment earnings 121,495 17,051
TOTAL ADDITIONS 275,770 661,572
DEDUCTIONS
Benefits paid 192,624 ‐
Payment to City for debt service ‐ 142,975
TOTAL DEDUCTIONS 192,624 142,975
NET INCREASE (DECREASE) IN FIDUCIARY NET POSITION 83,146 518,597
NET POSITION ‐ JANUARY 1 9,619,368 ‐
Effect of change in accounting principle ‐ 936,441
NET POSITION ‐ JANUARY 1 RESTATED 9,619,368 936,441
NET POSITION ‐ DECEMBER 31 $ 9,702,514 $ 1,455,038
City of Renton
Statement of Changes in Fiduciary Net Position
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
The notes to the financial statements are an integral part of this statement.Basic Financial Statements, 4-12
NOTE 1. SUMMARYOF SIGNIFICANTACCOUNTINGPOLICIES
TheCityofRenton’sfinancialstatementshavebeenpreparedinconformitywithgenerally
acceptedaccountingprinciples(GAAP)intheUnitedStates,asappliedtogovernments.The
GovernmentalAccountingStandardsBoard(GASB)isthestandardsettingbodyforgovernmental
accountingandfinancialreporting.
ForthereportingyearendedDecember31,2018theCityhasimplementedthefollowingGASB
Statements:
x StatementNo.75,AccountingandFinancialReportingforPostemploymentBenefitsOtherthan
Pensions–theobjectiveofthisStatementistoimproveaccountingandfinancialreportingby
stateandlocalgovernmentsforpostemploymentbenefitsotherthanpensions(other
postemploymentbenefitsorOPEB).TheStatementestablishesstandardsforrecognizingand
measuringliabilities,deferredoutflowsofresources,deferredinflowsofresources,and
expense/expenditures.ImplementationofthisStatementchangedthereportingofnetOPEB
liabilitytoatotalOPEBliabilityandmovedtherecognitionoftheliabilityfromthegovernmentͲ
widestatementofnetpositiontotheInsurancefundstatementofnetposition.Theeffectof
thesechangesaredetailedinNote15.
x StatementNo.84,FiduciaryActivities–theobjectiveofthisStatementistoimproveguidance
regardingtheidentificationoffiduciaryactivitiesforaccountingandfinancialreportingpurposes
andhowthoseactivitiesshouldbereported.ImplementationofthisStatementchangedthe
reportingofcustomerdepositspreviouslyreportedintheCity’sSpecialDepositagencyfund.
TheseamountsarenowreportedascustodialaccountsintheCity’sGeneralFund.Thischange
hadnoeffectonfundbalanceoftheGeneralFundorongovernmentalactivitiesnetposition.
ImplementationofthisStatementalsochangedthepresentationoffundsheldtheCity’s
custodialfund,previouslytitledagencyfund.Thecustodialfunddidnotpreviouslyreportnet
positionorthechangeinnetposition.Theeffectofthischangeonfiduciarynetpositionis
detailedinNote15.
x StatementNo.85,Omnibus2017–theobjectiveoftheStatementistoaddresspracticeissues
thathavebeenidentifiedduringimplementationanapplicationofcertainGASBStatements.
ImplementationofthisStatementresultedinrecognizingonͲbehalfpaymentsforpensionsinthe
GeneralFundthatwerepreviouslyrecognizedonlyinthegovernmentͲwidestatements.This
changehadnoeffectonfundbalanceoftheGeneralFundorongovernmentalactivitiesnet
position.
x StatementNo.89,AccountingforInterestCostIncurredbeforetheEndofaConstructionPeriod
–theobjectivesofthisStatementare(1)toenhancetherelevanceandcomparabilityof
informationaboutcapitalassetsandthecostofborrowingforareportingperiodand(2)to
simplifyaccountingforinterestcostincurredbeforetheendofaconstructionperiod.
ImplementationofthisStatementresultedinrecognitionofinterestexpensepreviously
capitalizedtoconstructioninprogressintheenterprisefunds.Theimplementationofthis
Statementistobeappliedprospectively,sothereisnoeffectontheenterprisefundsorthe
businessͲtypeactivitiesnetposition.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-13
A. REPORTING ENTITY
The City of Renton was incorporated on September 6, 1901, and operates under the laws of the
State of Washington applicable to a Non‐Charter code city with a Mayor/Council form of government.
A full‐time Mayor and seven part‐time Council members serve the City, all elected at large to four‐year
terms. The City provides the full range of municipal services authorized by state statutes, together with
a Municipal Airport, a Waterworks Utility, a Solid Waste Utility, and a Municipal Golf Course.
The City of Renton has no component units (either blended or discretely presented) included in these
statements. The City of Renton’s Mayor appoints the Governing Board for the Renton Housing
Authority, which is not considered a component unit of the City. The City is under no obligation to
subsidize, nor does it exercise any other prerequisite for inclusion.
B. BASIS OF PRESENTATION
The City’s basic financial statements include both government‐wide statements and fund financial
statements. The government‐wide statements report financial information for the City as a whole, while
the fund statements present detailed financial information at the fund level. The City’s fiduciary funds
are presented in the fund financial statements. Since the assets are being held for the benefit of a third
party and cannot be used for obligations of the City, they are not included in the government‐wide
statements.
Government‐wide financial statements
In the government‐wide statement of net position governmental and business‐type activities are
reported. Governmental activities are mostly supported by taxes, intergovernmental revenue, and
other non‐exchange transactions. The governmental activities column includes the combined data
from all governmental funds and internal service funds. Business‐type activities mostly rely on fees
and charges for services to external customers and include data from the City’s enterprise funds.
The government‐wide statement of activities presents a comparison between direct expenses and
program revenues for each of the City’s governmental activities (general government, judicial, public
safety, utilities, transportation, economic environment, health and human services, and culture and
recreation) and for each identifiable business‐type activity (waterworks utility, airport, solid waste
utility, and golf course). Direct expenses are those that are specifically associated with a function and
therefore clearly identifiable to that particular function.
The statement of activities reports the expenses of a given function offset by a program revenue directly
associated with the functional program. Program revenues include: 1) charges for services which reports
fees and charges for users of the City’s service, 2) operating grants and contributions which support
annual operating activities, and 3) capital grants and contributions which finance the acquisition,
construction, or rehabilitation of capital assets. For determining the function, charges for services are
tied to the function that generates the revenue and grants and contributions are tied to the function in
which functional use they are restricted towards.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-14
Taxes and other sources that are not directly related to a program are reported as general revenue.
The comparison of direct expenses with program revenues identifies the extent each governmental
function and business activity are self‐sustaining and requires a draw from the general revenues of the
City.
Generally, the effect of interfund activity has been eliminated from the government‐wide
financial statements, with the exception of various charges for services among different functions within
the government. Elimination of these charges would distort the direct costs and program revenues
reported for the various functions involved.
Fund financial statements
The City’s activities are tracked in individual funds to segregate the transactions to aid in
financial management and, in some cases, demonstrate legal compliance. The fund financial statements
are intended to present the City’s financial activities at a more detailed level. Separate financial
statements are provided for each fund category ‐ governmental, proprietary, and fiduciary funds. Each
of the City’s major funds, within each fund category, are presented in a separate column. All non‐major
funds, within each fund category, are aggregated into one column; internal service funds are aggregated
into one column and reported on the face of the proprietary fund statements; and fiduciary funds are
reported by type.
The City reports the following major governmental funds:
General Fund is the primary operating fund of the City. It is used to account for the resources and
disbursements of ordinary City operations that are not required to be accounted for in another fund.
These include the costs of legislative and executive departments, court services, finance and legal
departments, development services and police departments, human resources and technical services,
community services, parks, economic development, streets, property management for City owned
leased facilities, farmers market, and museum. The major sources of revenue are property taxes, utility
taxes, and sales taxes. Licenses and permits, charges for services, and fines and forfeits provide
additional support. Community development block grant activities are also accounted for within this
fund, which is federally funded.
Municipal Facilities CIP Fund is used to fund facility construction improvement and renovation, property
acquisitions for parks and City space needs, parks development and equipment, and major capital
requirements as identified in the Capital Investment Program (CIP).
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-15
The City reports the following major enterprise funds:
Waterworks Utility Fund accounts for all operating and capital improvement programs for water,
wastewater, and storm water services within the City. The operating activities are primarily supported
by user fees and include: administration, billings and collections, debt service, engineering and
operation, maintenance and repairs. The primary resources for capital improvement programs are
revenue bond proceeds, grants (as available), and utility connection charges.
Solid Waste Fund accounts for solid waste, recycling, and yard waste collection services for the City and
is supported entirely by service fees. The expenses include payment to the City’s garbage contractor
and other service charges.
Additionally, the government reports the following fund types:
Internal Service Funds include 1) the equipment rental fund (equipment replacement, information
technology, facilities, and communications) and 2) the insurance fund (including risk management,
workers compensation, unemployment compensation, and employee health care program). The
equipment rental fund factors all costs, including depreciation, into the rates charged to each user
department. The insurance fund pays expense and rates are charged to departments based on use
and/or coverage requirements.
Pension Trust Fund accounts for the payment of administrative costs and benefits for retired
firefighters and their beneficiaries, who were employed prior to March 1, 1970. Primary revenues
sources are the fire premium tax (contributed from the City) and investment income.
Custodial Fund accounts for fire impact fees collected on behalf of the Renton Regional Fire Authority.
Special Revenue Funds are used to account for specific revenues that are restricted by external
parties or committed through enabling legislation for particular purposes.
Debt Service Funds account for the accumulation of resources for and the payment of general obligation
and special assessment bonds.
During the course of operations the City has activity between funds for various purposes. Any
residual balances outstanding at year‐end are reported as due to/from other funds and advances
to/from other funds. While these balances are reported in the fund financial statements, certain
eliminations are made in the preparation of the government‐wide financial statements. Balances
between funds included in the governmental activities (generally between governmental and internal
service funds) are eliminated so that only the net amount is included as internal balances in the
governmental activities column. Similarly, balances between the funds included in the business‐type
activities are eliminated so that only the net amount is included as internal balances in the business‐
type activities column.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-16
Further, certain activity occurs during the year involving transfers of resources between funds. In
fund financial statements these amounts are reported as gross amounts as transfers in/out. While
reported in fund financial statements, certain eliminations are made in the preparation of government‐
wide financial statements. Transfers between the funds included in governmental activities are
eliminated so that only the net amount is included as transfers in the governmental activities column.
Similarly, balances between the funds included in business‐type activities are eliminated so that only
the net amount is included in transfers in the business‐type activities column.
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
Basis of Accounting refers to the point at which revenue or expenditure/expense transactions or events
are recognized in the accounts and reported in the financial statements. Measurement focus is
measured one of two ways: either the current financial resource or the economic resource method.
Government‐wide financial statements – the government‐wide financial statements are prepared
using the economic resources measurement focus and the accrual basis of accounting. Revenues are
recorded when earned and expenses are recorded when the liability is incurred, regardless of the timing
of related cash flows. Property taxes are recognized as revenue in the year they are levied and grants
are recognized as revenue as soon as all eligibility requirements have been met.
Governmental fund financial statements – the governmental fund financial statements use a different
measurement focus from the proprietary fund statements and government‐wide statements. The
governmental fund financial statements use the current financial resources measurement and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable
and available. Revenues are considered to be available when they are collectible within the current
reporting period or soon enough thereafter to pay liabilities of the current period.
The City considers revenues available if they are collected within 60 days of the end of the current
fiscal period. Expenditures are generally recorded when a liability is incurred, the same as accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated
absences, and claims and judgements are recorded only when payment is due. General capital asset
acquisitions are reported as current expenditures in governmental funds. Issuance of long‐term debt
and capital lease acquisitions are reported as other financing sources.
Property taxes, sales tax, franchise taxes, licenses, and interest associated with the current period are
all considered susceptible to accrual and have been recognized as revenue in the current fiscal period.
Expenditure‐driven grants are recognized as revenue when the qualifying expenditure amount is
received during the period or within the availability period for this revenue source. All other revenue
is considered measurable and available only when the cash is received by the City.
Since the measurement focus between the governmental fund financial statements and the
governmental activities in the government‐wide statements vary, a detailed reconciliation is included in
the fund statements to identify the relationship between the two statement types.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-17
Proprietary fund financial statements – the proprietary fund statements and pension fund
statements are reported using the economic resources measurement focus and accrual basis of
accounting, the same as the government‐wide statements.
D. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET POSITION/FUND
BALANCE
1. Cash and Cash Equivalents
The City has defined cash and cash equivalents as cash on hand, demand deposits, and all highly
liquid investments (including restricted assets) with maturity of three months or less when
purchased. These amounts are classified on the balance sheet or in the statement of net
position as cash and cash equivalents or investments in the various funds. Included in this category
are all funds invested in the Local Government Investment Pool. Excluded from this category are
cash balances held by Fiscal Agents since the City does not have discretionary use of these funds.
Most of the City’s cash balances are pooled and invested. Interest earned from investments
purchased with pooled cash is allocated monthly to each fund based on the fund’s beginning equity
balance in the pooled fund.
2. Investments
Investments are recorded at amortized cost or at fair value in accordance with GASB Statement No.
72, Fair Value Measurement and Application. Accordingly, the change in fair value of investments is
recognized as an increase or decrease to investment assets and investment income.
3. Receivables
Receivables have been reported net of estimated uncollectible accounts. Because property taxes,
special assessments, and utility billings are considered liens on property, no estimated uncollectible
amounts are established.
Taxes receivable consists of property taxes and related interest and penalties. Property taxes are
an enforceable lien on real property and are due the first day of the levy year and may be paid
in two equal installments. The first half is due April 1 and the balance is due October 31. The City
collects approximately 99% of the property tax due in the year it is levied and delinquent taxes are
collected within the following few years. Property tax due, but not collected within 60 days of year
end, is recorded as a receivable and offset by deferred inflow of resources – unavailable revenue.
There is no allowance for uncollectable property tax because historically all taxes are collected
and/or enforceable via lien (refer to Note 4 for more information).
Accrued interest receivable consists of amounts earned on investments, notes, and contracts.
Customer accounts receivable consists of amounts owed from private individuals or organizations
for goods and services. If the transactions are receivable from another governmental unit, it is
accounted for within “due from other governments.”
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-18
Special assessments are recorded when levied and are liens against the property benefited.
Special assessments receivable consist of current and delinquent assessments and related interest
and penalties. Special assessments not due within one year are reported as deferred inflows of
resources in the governmental fund statements and reported as non‐current assets in the
government‐wide statements and the proprietary fund statements.
4. Internal Balances, Interfund Loan Receivables/Payable and Due To/From Other Funds
Activities between funds that are representative of lending/borrowing arrangements outstanding
at the end of the fiscal year are referred to as interfund loans receivable/payable. All other
outstanding balances between funds are reported as due to/from other funds. These amounts are
eliminated within the governmental activities and business‐type activities in the government‐wide
statement, except for the residual balances outstanding between the governmental activities and
business‐type activities, which are reported as internal balances. Refer to Note 10 for a detailed
summary of interfund activity.
5. Inventories and Prepaid items
All City inventories are maintained on a consumption basis of accounting where items are purchased
for inventory and charged to the budgetary accounts as the items are consumed. Any material
inventories at year‐end are included in the balance sheet of the appropriate fund. All inventories
are carried at cost on the first in, first out – FIFO basis, with the exception of the Public Works
Maintenance shops inventory. The value of this inventory is calculated using the average cost
method. The cost of inventories are recorded as an expenditure/expense when consumed rather
than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are
reported as prepaid items in both the government‐wide and fund statements.
6. Capital Assets
General capital assets are those assets not specifically related to activities reported by the
proprietary funds. These assets generally result from expenditures in governmental funds or
contributions. The City reports these assets in the governmental activities column of the
government‐wide statement of net position but does not report these assets in the governmental
fund financial statements. Capital assets utilized by the propriety funds are reported both in the
business‐type activities of the government‐wide statement of net position and in the proprietary
fund statement of net position.
All capital assets are valued and capitalized at cost (or estimated historical cost when actual
historical cost is unknown) and updated for additions and retirements during the year. Donated
capital assets are recorded at their acquisition value as of the date received. The City maintains a
capitalization threshold of $5,000 and an estimated useful life in excess of two years. Improvements
to City assets and infrastructure are capitalized, but the cost of normal maintenance and repairs
that do not extend the useful life, or increase capacity or efficiency, are expensed.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-19
All capital assets, other than land, right‐of‐ways, water rights, and construction in progress, are
depreciated using the straight line method over the following estimated useful lives:
Amortization on all intangible assets is provided on the straight‐line basis over the following useful
lives:
7. Other non‐current Assets
A portion of special assessments receivable are collectible in greater than one year. This long‐term
portion of the receivable is reported as another non‐current asset.
Investment in joint ventures consists of the City’s equity balances and investment in debt of
Valley Communications Center and South Correctional Entity (see also Note 12).
8. Deferred outflows/inflows of resources
In addition to assets, the statement of financial position will report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflow of
resources, represents a consumption of net position that applies to a future period and will not be
recognized as an outflow (expense/expenditure) until that reporting period. The City has two items
that qualify for reporting in this category. Deferred amount on refunding is reported on the
government‐wide statement of net position and the proprietary fund statement of net position.
A deferred amount on refunding results from the difference in the carrying value of refunded debt
and its reacquisition price. This amount is deferred and amortized over the life of the refunded or
refunding debt, whichever is shorter. Deferred amounts related to pensions are differences between
actual and projected experience, investment earnings and actuarial assumptions, changes in
proportion, and the City’s contributions to pensions subsequent to the measurement date, which
was June 30, 2018, provided by the State of Washington. Refer to Note 6 for more information on
pensions.
In addition to liabilities, the statement of financial position will report a separate section for
deferred inflows of resources. This separate financial statement element represents an acquisition
of net position that applies to a future period(s) and so will not be recognized as an inflow of
resources (revenue) until that time (in prior years this inflow was recognized as “deferred revenue”
within the liabilities). The City has three items that it reports as a deferred inflow of resources.
Estimated
Capital Asset Class Useful Life
Buildings and structures, excluding utilities 10‐50 years
Other improvements 10‐80 years
Utility plant 25‐75 years
Machinery and equipment 3‐40 years
Infrastructure 25‐75 years
Estimated
Intangible Asset Class Service Life
Computer software 3‐15 years
Patents, trademarks, copyrights 3‐50 years
Other 3‐12 years
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-20
Unavailable revenue arises only on the modified accrual basis, in the governmental fund balance
sheet. The amount reported in unavailable revenue is comprised of three sources: delinquent
municipal court receivables, delinquent photo enforcement receivables, and delinquent property
tax receivables. These amounts are deferred and recognized as revenue in the period the amounts
become available. On the government‐wide statements (accrual basis of accounting) the amounts
are considered available and recognized as inflow of resource in the current period. Deferred
amount of special assessments is the long‐term principal due to the City from special assessment
connections. This amount is only reported in the governmental fund balance sheet. Deferred
amounts related to pensions are the differences between actual and projected experience,
investment earnings and actuarial assumptions, and changes in proportion. Refer to Note 6 for more
information on pensions.
9. Unearned Revenues
This account includes amounts collected in advance for services not yet rendered. The amounts
are subject to return to the payor in the event the associated services are not performed.
10. Custodial Accounts
This account reflects the liability for net monetary assets being held by the City in its agency capacity,
the majority of which is comprised of customer deposits.
11. Compensated Absences
The City’s policy permits employees to accumulate earned but unused vacation leave benefits,
which are eligible for payment upon separation from City service. For employees hired prior to
January 1, 1994, a fifty percent cash out of accumulated earned but unused sick leave is also eligible
for payment upon separation. The City accrues accumulated unpaid vacation and sick leave (when
eligible) when earned (or estimated to be earned) by the employee. The total compensated
absences liability is reported on the government‐wide statements and in each proprietary fund.
12. Fund Equity
Fund equity at the governmental fund level is classified as fund balance. Fund equity for all other
reporting is classified as net position.
Fund balance represents the difference between the current assets and deferred outflows of
resources and current liabilities and deferred inflows of resources in the governmental fund financial
statements. Fund balance classifications comprise of a hierarchy based primarily on the extent to which
the City is bound to honor constraints on the specific purpose for which amounts in those funds can be
spent. Fund balances are classified as follows:
a. Nonspendable – items that cannot be spent due to form; inventories, prepaid amounts, long‐term
loan receivables, or amounts that must be maintained intact legally.
b. Restricted – amounts constrained for specific purposes imposed through the judicial process
and enabling legislation adopted by the City; or through external restrictions imposed by
creditors, grantors, or laws or regulations of other governments.
c. Committed – amounts constrained by the City Council. Only the Council can, by ordinance,
establish, modify, or rescind constraints on committed fund balances.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-21
d. Assigned – constraints imposed by the City Council for amounts intended for specific purposes, but
do not meet the criteria of restricted or committed. It is the City’s policy that intent of use can
be assigned by the City Council, or by a designated official, adopted through either the biennial
budget ordinance or an amending budget ordinance. For governmental funds, other than the
General Fund, the residual fund balance that is not restricted or committed is reported as assigned
because the use of fund balance, at a minimum, should be used for the purpose of that fund.
Additional action does not need to be taken to remove an assignment, whereas additional action is
essential to remove a commitment.
e. Unassigned – any remaining fund balance in the General Fund that does not meet any of the above
criteria. The General Fund is the only fund that reports a positive unassigned fund balance amount.
In other governmental funds, not the General Fund, may report a negative unassigned fund balance
if expenditures incurred for a specific purpose exceed the amounts of restricted, committed, or
assigned amounts to those purposes.
Fund balance flow assumptions ‐ when multiple categories of fund balance are available for incurred
expenditures, it is the City’s policy to consider restricted fund balance to have been depleted before
using any of the components of unrestricted fund balance (the total of committed, assigned, and
unassigned fund balance). Further, when the components of unrestricted fund balance can be used
for the same purpose, committed fund balance is depleted first, followed by assigned fund balance.
Unassigned fund balance is applied last.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-22
The following shows the composition of the fund balance in governmental funds for the year
ended December 31, 2018:
General
Municipal
Facilities CIP
Other
Governmental Total
Restricted
Cable Franchise Fees ‐$ $ ‐ $ 527,520 $ 527,520
CDBG Loans Receivable 481,022 ‐ ‐ 481,022
Culture and Recreation 2,831 106,382 ‐ 109,213
Family First Center ‐ Donations ‐ 175,615 ‐ 175,615
Sunset Area Capital Improvements ‐ 764,460 ‐ 764,460
Senior Center Advisory Committee ‐ Donation 9,174 ‐ ‐ 9,174
Hotel/Motel Tax ‐ ‐ 742,300 742,300
Economic Environment 127 ‐ ‐ 127
Judicial 15,637 ‐ ‐ 15,637
King County Parks Levy ‐ 19,455 ‐ 19,455
Impact Mitigation Fees ‐ ‐ 6,967,524 6,967,524
Public Safety 919,787 ‐ ‐ 919,787
REET ‐ 4,907,724 ‐ 4,907,724
Renton Community Marketing Campaign ‐ ‐ 34,045 34,045
Transportation ‐ ‐ 267,036 267,036
Wetlands Mitigation Bank ‐ ‐ 340,747 340,747
Total Restricted 1,428,578 5,973,636 8,879,172 16,281,386
Committed
1% for Art ‐ ‐ 119,393 119,393
Capital Parks and Facilities Projects ‐ 12,510,924 ‐ 12,510,924
Capital Street Improvements ‐ ‐ 4,495,143 4,495,143
Total Committed ‐ 12,510,924 4,614,536 17,125,460
Assigned
Culture and Recreation 4,336,427 ‐ ‐ 4,336,427
Capital Parks and Facilities Projects ‐ 4,156,472 ‐ 4,156,472
Debt Service ‐ ‐ 2,787,931 2,787,931
Economic Stabilization ‐ 2,581,083 ‐ 2,581,083
Family First Center ‐ 4,053,860 ‐ 4,053,860
Farmer's Market 94,124 ‐ ‐ 94,124
Museum 59,849 ‐ ‐ 59,849
Senior Center Operations 1,503,928 ‐ ‐ 1,503,928
Human Services 14,285 ‐ ‐ 14,285
Leased City Properties 320,287 ‐ ‐ 320,287
Transportation 3,216,707 ‐ 384,430 3,601,137
Total Assigned 9,545,607 10,791,415 3,172,361 23,509,383
Unassigned
Unassigned 41,085,590 ‐ ‐ 41,085,590
Total Unassigned 41,085,590 ‐ ‐ 41,085,590
Total fund balances 52,059,775$ 29,275,975$ 16,666,069$ 98,001,819$
December 31, 2018
Governmental Fund Balances
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-23
Net position reflects the difference between assets and liabilities, in the government‐wide and
proprietary fund statement of net position. The component net investment in capital assets consists
of capital assets, net of accumulated depreciation, reduced by any outstanding balances of any
borrowing (ex. bonds or loans and related deferred amounts on refunding) for the acquisition,
construction, or improvement of those assets. The net position is reported as restricted when
there are limitations imposed on their use either through enabling legislation adopted by the
City or through external restrictions imposed by creditors, grantors, or laws or regulations of
other governments. The balance of the net position is reported as unrestricted.
Deficit in fund net position – At December 31, 2018 the Insurance Fund reported a deficit in net
position of ($8,041,059). The deficit is a result of implementing GASB Statement No. 75, which
required the City to recognize a total OPEB liability.
The following shows the composition of the restricted net position balances reported in the
government‐wide and proprietary fund statements for the year ended December 31, 2018:
Net position flow assumptions – In order to calculate the amounts to be reported as restricted
net position and unrestricted net position on the government‐wide and proprietary fund
statements, a flow assumption is made. It is the City’s policy to consider restricted net position to
have been depleted before unrestricted net position.
Minimum fund balance policy – The City Council has adopted a financial policy to maintain a
minimum level of unrestricted fund balance in the general fund. The target level is set at 12
percent, with a minimum of 8 percent, of general fund operating expenditures. This amount is
intended to provide fiscal stability when economic downturns and other unexpected events occur.
Governmental
Activities
Business‐Type
Activities
Restricted Net Position
Cable Franchise Fees 527,520$ ‐$
CDBG Loans Receivable 481,022 ‐$
Culture and Recreation 109,213 ‐
Family First Center 175,615 ‐
Sunset Area Capital Improvements 764,460
Hotel/Motel Tax 742,300 ‐
Senior Center 9,174
Economic Environment 127 ‐
Judicial 15,637 ‐
King County Parks Levy 19,455 ‐
Impact Mitigation Fees 6,967,524 ‐
Public Safety 919,787 ‐
REET 4,907,724 ‐
Renton Community Marketing Campaign 34,045 ‐
Transportation 267,036 ‐
Wetlands Mitigation Bank 340,747 ‐
Debt Service ‐ 2,810,145
Pensions 20,523,747 ‐
Total Restricted Net Position $ 36,805,133 $ 2,810,145
December 31, 2018
Restricted Net Position
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-24
Stabilization fund policy – The City has adopted a comprehensive stabilization policy that helps
provide stability through uncertain times. This allows for temporary cushion and flexibility when
needed. The City Council, through ordinance, has established the following stabilization reserves:
1. Economic development revolving fund reserve: the City has accumulated reserves of $2.5
million for economic development projects. Expenditure utilizing this reserve will require a two‐
thirds majority vote of the City Council.
2. Catastrophic reserve: the City will maintain a targeted amount of 8 percent for risk management
reserves, for catastrophic emergencies. Expenditure utilizing this reserve will require a two‐
thirds majority vote of the City Council.
3. Anti‐recessionary reserve: the City will maintain a targeted reserve equal to 4 percent of the
general fund operating expense. Expenditures utilizing this reserve will require a two‐thirds
majority vote of the City Council and must be replenished within three years.
4. Annexation sales tax credit expiration/transition reserve: to help support debt service
obligations between the time the annexation sales tax credit expires (mid‐2018) and when the
downtown parking garage and library bond are paid (2022). Expenditures utilizing this reserve
will require a two‐thirds majority vote of the City Council.
5. General obligation bond payment reserve: for all councilmatic, general obligation bonds
issued after 2013, a one year payment reserve shall be established. The only bond issued
since this provision are the 2015 General Obligation Refunding Bonds.
E. REVENUES, EXPENDITURES, AND EXPENSES
1. Operating Revenues and Expenses
Proprietary funds distinguish operating revenues and expenses from non‐operating revenues
and expenses. Operating revenue and expense generally result from providing services and
producing and delivering goods in connection with a proprietary fund’s principal ongoing
operations. The principal operating revenue of the waterworks utility, solid waste, airport, golf
course, and internal service funds are charges to customers for sales and services. The waterworks
utility also recognizes water meter installation fees, and wastewater and surface water
construction permit fees as operating revenue because these charges are intended to offset the
cost of connecting new customers to the system. Operating expense for proprietary funds and
internal service funds include the cost of sales and services, administrative expenses, and
depreciation of capital assets. All revenues and expenses not meeting this definition are reported
as non‐operating revenue and expense.
2. Program Revenue
Amounts reported as program revenue, on the government‐wide statement of activities,
include: 1) charges for customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function and 2) grants and contributions that are
restricted to meeting the operation or capital requirements of a given function. All taxes, included
those dedicated to specific purposes, are reported as general revenue rather than program revenue.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-25
3. Capital Contributions
Capital contributions reported in the proprietary fund statements and the government‐wide
statements reflect the value of outside contributions of capital assets (i.e. developers, land
donations), capital grants, special assessments, and system development charges.
4. Interfund Activity
Exchange transactions between funds are reported as revenue in the selling fund and as an
expenditure/expense in the purchasing funds. On the government‐wide statement of activities, the
exchange transactions between the internal service funds and the user funds are eliminated.
Flows of cash or goods from one fund to another without a requirement of repayment are reported
as interfund transfers in/out. Interfund transfers in/out are reported as other financing sources/uses
in the governmental funds and following non‐operating revenues and expenses in the proprietary
funds. In the government‐wide statement of activities, transfers between governmental and
business‐type activities are reported as general revenue. Transfers between funds in governmental
activities are eliminated and transfers between funds in business‐type activities are eliminated.
5. Expenditures/Expenses
Expenses in the Government‐wide Statement of Activities are reported by function as a
governmental activity (general government, judicial, public safety, utilities, transportation,
economic environment, health and human services, culture and recreation), interest on long‐term
debt, or business‐type activity (waterworks utility, airport, solid waste utility, or golf course). In the
fund financial statements, expenditures of governmental funds are classified by: function, debt
service principal and interest payments, or purchases of capital items. Proprietary expenditures are
classified as operating or non‐operating.
The City recovers certain administrative costs through indirect cost allocations to departments city‐
wide. These allocated costs are consolidated and reported by function in the government‐wide
statement of activities.
NOTE 2. DEPOSITS AND INVESTMENTS
A. Deposits
Custodial Credit Risk
Custodial Credit Risk is the risk that in the event of a failure of the counterparty to an investment
transaction the City would not be able to recover the value of the investment or collateral securities.
The City does not currently have a policy regarding deposits concerning custodial credit risk or foreign
currency risk.
At December 31, 2018 the City had the following balances on deposit with financial institutions:
Deposits Deposits at 12/31/2018
Bank Deposits 80,840,228$
Non‐negotiable Certificates of Deposit (CD's) 31,561,730
TOTAL DEPOSITS 112,401,958$
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-26
The City’s deposits and certificates of deposit are entirely covered by the Federal Depository Insurance
Corporation (FDIC) or held in a multiple financial institution collateral pool administrated by the State of
Washington Public Deposit Protection Commission (PDPC). The City’s deposits comply with the
guidelines within Chapter 35A.40.030 of the Revised Code of Washington (RCW).
B. Investments
Investments that are not Measured at Fair Value
At December 31, 2018 the City had the following investments at amortized cost:
The City is a participant in the Local Government Investment Pool authorized by Chapter 294, Laws of
1986, and is managed and operated by the Washington State Treasurer. The State Treasurer is
responsible for establishing the investment policy for the pool and reviews the policy annually and
proposed changes are reviewed by the LGIP advisory Committee.
Investments in the LGIP, a qualified external investment pool, are reported at amortized cost which
approximates fair value. The LGIP is an unrated external investment pool. The pool portfolio is invested
in a manner that meets the maturity, quality, diversification and liquidity requirements set forth by the
GASB Statement No. 79 for external investments pools that elect to measure, for financial reporting
purposes, investments at amortized cost. The LGIP does not have any legally binding guarantees of share
values. The LGIP does not impose liquidity fees or redemption gates on participant withdrawals. The
Office of the State Treasurer prepares a stand‐alone LGIP financial report. A copy of the report is
available from the Office of the State Treasurer, PO Box 40200, Olympia, Washington 98504‐0200, online
at http://www.tre.wa.gov.
Investments Measured at Fair Value
The City measures and records its investments within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. The guidelines recognize a three‐tiered fair value hierarchy, as follows:
Level 1: Quoted prices in active markets for identical assets or liabilities;
Level 2: These are quoted market prices for similar assets or liabilities, quoted prices for identical
or similar assets or liabilities in markets that are not active, or other than quoted prices that are not
observable.
Level 3: Unobservable inputs for an asset or liability.
Security Type Amortized Cost
Local Government Investment Pool (LGIP) 112,856,435$
TOTAL INVESTMENTS 112,856,435$
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-27
At December 31, 2018 the City had the following recurring fair value measurements:
Valuation techniques to determine fair value should be consistent with one or more of three approaches:
the market approach, cost approach, and income approach. The City uses the market approach for the
valuation of Significant Other Observable Inputs Investments (Level 2). The market approach to
measuring fair value uses prices and other relevant information generated by market transactions
involving identical or similar assets, liabilities, or groups of assets and liabilities. Using quoted market
prices is a technique that is consistent with the market approach.
The City invests excess and inactive funds in accordance with the City’s Investment Policy (last updated
and approved on February 23, 2009), which complies with the guidelines within Chapter 35A.40.050 of
the Revised Code of Washington (RCW). This allows for investment of excess cash and inactive cash,
directs that the responsibility for determining available cash for investment is placed upon the
department administering the funds, and allows for pooling of the cash provided that the allocation of
income is proportionate to the investment of each fund. Currently, the City invests in obligations of the
U.S. Government, U.S. agency issues, and Certificates of Deposit with Washington State banks and
savings and loan institutions as allowed by RCW.
Credit risk. Credit Risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. The City invests in US Treasury securities which are considered free of credit risk, and in
securities backed by the full faith and credit of the U.S. Government as well as U.S. government
sponsored enterprises including Federal Home Loan Mortgage Corporation.
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates over time, adversely affecting
the fair value of an investment. The City’s portfolio is managed within the parameters established by
the Investment Policy, which limits the weighted average maturity of the portfolio to five years.
Security Type Total
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
U.S. Agency Securities 7,426,249$ 7,426,249$
TOTAL INVESTMENTS 7,426,249$ 7,426,249$
Investment Type Cost Fair Value Moody's S&P
Local Government Investment Pool (LGIP) 112,856,435$ 112,856,435$ unrated unrated
Federal Home Loan Mortgage Corporation 7,525,760 7,426,249 Aaa AA+
TOTAL INVESTMENTS 120,382,195$ 120,282,684$
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-28
The City’s Investment Policy directs that the standard of prudence for investment activities shall be the
Prudent Investor Standard that states: “Investments shall be made with judgment and care, under
circumstances then prevailing, which person of prudence, discretion, and intelligence would use in the
management of their own affairs, not for speculation, but for investment purposes, considering the
probable safety of their capital as well as the probable income to be derived.”
Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude
of a government’s investment in a single issuer. The City diversifies its investment instruments to avoid
incurring unreasonable risk inherent with the over‐investment of instruments and issuers using the
following target distribution as a guide during normal economic times while allowing flexibility when
appropriate. The City’s individual issuers are less than 5% of total investments or are otherwise excluded
from this disclosure due to the low risk nature of the investment.
Target Maximum per Policy
Instrument
Maximum
Issuer
Maximum
U.S. Treasuries 100% 100%
U.S. Agencies 75% 50%
Certificates of Deposit (within WPDPC) 75% 20%
Local Governmental Investment Pool
(LGIP) 75% 75%
Commercial Paper 25% 5%
Custodial Credit Risk – Investments. Custodial credit risk for investments is the risk that, in the event of
the failure of the counter party to a transaction, a government will not be able to recover the value of
investment or collateral securities that are in the possession of an outside party. All security transactions,
including collateral for repurchase agreements, entered into by the City are conducted on a delivery‐
versus‐payment (DVP) basis and are held in our safekeeping trust account with Wells Fargo under terms
negotiated by the State of Washington.
Investment Type Cost Fair Value
Average
Interest
Rate
Local Government Investment Pool (LGIP)112,856,435$ 112,856,435$ 2.375%
Federal Home Loan Mortgage Corporation 7,525,760 7,426,249 1.610%
TOTAL INVESTMENTS 120,382,195$ 120,282,684$
Investment Type
0‐6
months
6 months ‐
1 year
1‐3
years
3+
years Totals
Local Government Investment Pool (LGIP) 112,856,435$ ‐$ ‐$ ‐$ 112,856,435$
Federal Home Loan Mortgage Corporation ‐ ‐ 7,426,249 ‐ 7,426,249
TOTAL INVESTMENTS 112,856,435$ ‐$ 7,426,249$ ‐$ 120,282,684$
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-29
NOTE 3. PROPERTY TAXES
The King County Finance Director acts as an agent to collect property taxes levied in the county for all
taxing authorities. Taxes are levied annually, January 1, on property value listed as of the prior August
31. Assessed values are established by the King County Assessor at 100 percent of fair market value. A
revaluation of all property is required every two years; however, King County has the ability to revalue
annually.
Property taxes levied by the King County Assessor and collected by the King County Finance Director
become a lien on the first day of the levy year and may be paid in two equal installments if the total
amount exceeds $30. The first half of real property taxes is due on April 30 and the balance is due
October 31. Delinquent taxes bear interest at the rate of 12 percent and are subject to additional
penalties if not paid as scheduled. No allowance for uncollectible taxes is established because delinquent
taxes are considered fully collectible.
At year‐end, property taxes are recorded as a receivable with the portion not expected to be collected
within 60 days offset by unavailable revenue. During the year, property tax revenues are recognized
when cash is received.
The tax rate for general City operations is limited to $3.825 per $1,000 of assessed value (RCW
84.52.043), less the actual amount levied by the King County Library System (maximum $0.50/$1,000)
and the actual amount levied by the Renton Regional Fire Authority (maximum $1.00/$1,000). Included
in this amount, up to $0.225 (22.5 cents) per $1,000 may be designated for contribution to the Firemen’s
Pension Fund. If a report by a qualified actuary on the condition of the Firemen’s Pension Fund
establishes that this amount (or portion of) is not necessary to maintain the actuarial soundness of the
fund, the amount can be used for any other municipal purpose (RCW 41.16.060). The maximum statutory
rate for 2018, after reductions noted above, was $2.54071.
The tax rate limit may be reduced for any of the following reasons:
1. The Levy Limit: the levy limit calculation applies to a taxing district’s budget, and not to increases in
the assessed value or tax bill of individual properties. Initiative 747 which restricted individual taxing
districts from collecting, in any year, more than a one percent increase in their regular, non‐voted,
levy over the highest levy amount since 1985 was overturned by the courts. However during 2007,
the state legislature reinstated this limit with the passage of HB2416. New construction,
annexations, and excess levies approved by the voters are not included in the levy limit calculation.
If the assessed valuation increases by more than one percent due to revaluation, the levy rate will
be decreased.
2. The One Percent Constitution Limit: The Washington State Constitution limits the regular (non‐
voted) combined property tax rate applied to an individual’s property to one percent ($10 per
$1,000) on the market valuation. Voters may approve special levies that are added to this figure. If
the taxes of all districts exceed this amount, each is proportionately reduced until the total is at or
below the one percent limit.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-30
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations. There is currently no
excess levy for General Obligation Bond debt. The City’s regular levy per the King County Assessor’s 2018
Annual Report is $1.15.
NOTE 4. CAPITAL ASSETS AND DEPRECIATION
Depreciation and amortization was charged to the functions as follows:
Depreciation Amortization Total
General Government $ 1,200,680 $ ‐ 1,200,680$
Judicial ‐ 6,142 6,142
Public Safety 284,028 2,003 286,031
Physical Environment 460,001 ‐ 460,001
Transportation 6,331,854 ‐ 6,331,854
Economic Development 482,573 ‐ 482,573
Culture and Recreation 1,418,516 ‐ 1,418,516
Health and Human Services 51,123 ‐ 51,123
Internal Service Funds (General Governmental) 2,332,803 148,309 2,481,112
$ 12,561,578 $ 156,454 $ 12,718,032
Depreciation Amortization Total
Waterworks $ 9,029,434 $ 45,713 9,075,147$
Airport 1,134,655 ‐ 1,134,655
Golf Course 211,069 ‐ 211,069
$ 10,375,158 $ 45,713 $ 10,420,871
Total‐Governmental Activities
Total‐Business‐Type Activities
Governmental Activities
Business‐Type Activities
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-31
Capital asset activity for the year ended December 31, 2018 was as follows:
Beginning Ending
Balance Increases Decreases Reallocation Balance
Governmental activities :
Capital assets, not being depreciated:
Land and land improvements $ 210,672,191 $ 614,253 $ (769,838) $ 115,794 $ 210,632,400
Construction in progress 20,334,442 11,029,157 (21,734) (16,082,630) 15,259,235
Total capital assets, not being depreciated 231,006,633 11,643,410 (791,572) (15,966,836) 225,891,635
Capital assets, being depreciated:
Buildings and structures 79,498,851 ‐ (281,594) ‐ 79,217,257
Other improvements 301,212,056 1,999,889 ‐ 15,580,924 318,792,869
Machinery and equipment 30,294,830 4,607,515 (1,176,900) ‐ 33,725,445
Total capital assets being depreciated 411,005,737 6,607,404 (1,458,494) 15,580,924 431,735,571
Less accumulated depreciation for:
Buildings and structures (37,902,889) (2,110,001) 268,913 ‐ (39,743,977)
Other improvements (98,995,480) (8,007,867) ‐ ‐ (107,003,347)
Machinery and equipment (20,886,592) (2,443,710) 1,021,951 ‐ (22,308,351)
Total accumulated depreciation (157,784,961) (12,561,578) 1,290,864 ‐ (169,055,675)
Total capital assets, being depreciated, net 253,220,776 (5,954,174) (167,630) 15,580,924 262,679,896
Intangible Assets:
Intangible assets, being amortized 4,693,103 82,294 ‐ 96,862 4,872,259
Less accumulated amortization (4,346,730) (156,454) ‐ ‐ (4,503,184)
Total intangible asset, being amortized, net 346,373 (74,160) ‐ 96,862 369,075
Total Intangible assets 346,373 (74,160) ‐ 96,862 369,075
Governmental activities capital assets, net $ 484,573,782 $ 5,615,076 $ (959,202) $ (289,050) $ 488,940,606
Business‐type activities:
Capital assets, not being depreciated:
Land and land improvements $ 6,150,056 $ ‐ $ ‐ $ ‐ $ 6,150,056
Construction in progress 14,336,547 7,098,306 (160,027) (10,542,157) 10,732,669
Total capital assets, not being depreciated 20,486,603 7,098,306 (160,027) (10,542,157) 16,882,725
Capital assets, being depreciated:
Buildings and structures 17,576,346 ‐ ‐ ‐ 17,576,346
Other improvements 418,535,686 4,746,787 (148,328) 10,831,207 433,965,352
Machinery and equipment 2,921,180 70,143 ‐ ‐ 2,991,323
Total capital assets being depreciated 439,033,212 4,816,930 (148,328) 10,831,207 454,533,021
Less accumulated depreciation for:
Buildings and structures (8,347,714) (426,802) ‐ ‐ (8,774,516)
Other improvements (142,423,098) (9,813,013) 66,903 ‐ (152,169,208)
Machinery and equipment (1,987,546) (135,343) ‐ ‐ (2,122,889)
Total accumulated depreciation (152,758,358) (10,375,158) 66,903 ‐ (163,066,613)
Total capital assets, being depreciated, net 286,274,854 (5,558,228) (81,425) 10,831,207 291,466,408
Intangible Assets:
Intangible assets, not being amortized 811,000 ‐ ‐ ‐ 811,000
Intangible assets, being amortized 527,222 ‐ ‐ ‐ 527,222
Less accumulated amortization (294,846) (45,713) ‐ ‐ (340,559)
Total intangible asset, being amortized, net 232,376 (45,713) ‐ ‐ 186,663
Total Intangible assets 1,043,376 (45,713) ‐ ‐ 997,663
Business‐type activities capital assets, net $ 307,804,833 $ 1,494,365 $ (241,452) $ 289,050 $ 309,346,796
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-32
At the end of 2018, a total of 48 projects comprise the Construction in Progress. Upon completion, the
projects will be reallocated to their appropriate categories.
Construction commitments as of December 31, 2018, are as follows:
Governmental Activities Projects:
Construction
in progress
Remaining
Commitment
Rooftop Dragon at S. 3rd St and Wells Ave S. 50,683$ 41,468$
S. 2nd and S. Main Public Art (Loop Art) 13,950 ‐
Sign Shop Improvements 132,066 9,042
Fire Station 15 4,926,540 389,989
Regis Park Athletic Field Expansion 72,838 727,658
Tiffany Park Playground 115,278 112,829
Cedar River Trail Park 89,111 89,111
Sunset EIS Park 3,166,327 420,419
Kenyon Property Building 73,991 ‐
Kenyon Property Instahot Water Heater 10,556 ‐
Boathouse Dock Replacement 51,197 16,990
City Hall Elevator Replacement 103,283 99,909
Coulon Structural Improvements 656,901 1,960,057
Park Ave Extension 452,570 268,878
Rainier Ave S/N Phase 4721,597 182,427
31st St Bridge Replacement 2,051,634 694,253
Duvall Ave 7th to Sunset 527,539 192,029
Lake Washington Loop Trail 716,154 ‐
Sunset Blvd Corridor 20,100 119,385
Williams Ave S & Wells Ave S Conversion 766,217 ‐
Family First Center 250,143 124,023
Online B&O Reporting‐Praxis 198,061 ‐
EnerGov CSS Portal Module 5,688 ‐
CityWorks ‐ Parks Work Order and Asset Management System 68,182 ‐
Eliptical Cardio Steppers for Liberty Park (3)18,631 ‐
Total governmental activities 15,259,235$ 5,448,466$
Business‐Type Activities Projects:
Construction
in progress
Remaining
Commitment
Airport Office Rehab 362,754$ 20,688$
295 East Perimeter Road Cross Walk & Signage 24,371 7,754
Renton Hill Main Replacement 2,003,385 1,377,303
Highlands 435 ‐ Resevoirs Replacement 1,963,959 104,742
Kennydale 320‐Reservoir 1,400,890 362,265
Downtown Water Main Replacement 39,766 512,151
Water Pump Stations Rehab 83,379 3,009
Renton Hill Sewer Replacement 1,519,596 1,377,303
Falcon Ridge LS Rehab 580,622 605,179
Thunder Hills Sanitary 460,283 45,284
Force Main Rehabilitation Replacement 85,049 260,186
Lift Station Rehabilitation 164,932 260,186
Downton Sewer Replacement/Rehab 127,905 525,409
Controllers for Telemetry System 65,499 ‐
Lake Youngs Court 13,446 8,652
Stormwater Facility Fencing 16,986 ‐
SE 172nd St/125th Ave SE Storm Sys 2,768 ‐
NE 16th/Jefferson Ave NE Stormwater 11,908 ‐
Downtown Storm System Improvements 122,689 512,151
Heather Downs Detention Pond Retrofit 13,215 ‐
Madsen Creek Improvement 320,186 171,475
Rainer Ave/Benson Rd S ‐ Culvert Replacement 4,519 ‐
Renton Hill Storm System Improvement 1,344,562 1,377,303
Total business‐type activities 10,732,669$ 7,531,042$
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-33
NOTE 5. PENSION PLANS
For purposes of measuring the net pension liability/asset, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net
position of the Plans and additions to/deductions from the Plan’s fiduciary net position have been
determined on the same basis as they are reported by the State of Washington Department of
Retirement Systems (DRS). For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments
are reported at fair value.
General Information about the Pension Plans
All of the City’s full‐time and qualifying part‐time employees are eligible to participate in one of the
following statewide retirement systems administered by the Washington State Department of
Retirement Systems:
Public Employees’ Retirement System (PERS) Plans 1, 2, and 3
Law Enforcement Officers’ and Firefighters’ Retirement System (LEOFF) Plans 1 and 2
Public Safety Employees’ Retirement System (PSERS) Plan 2
The Department of Retirement Systems (DRS), a department within the primary government of the State
of Washington, issues a publicly available comprehensive annual financial report (CAFR) that includes
financial statements and required supplementary information for each plan. The DRS CAFR may be
obtained by contacting the Washington State Department of Retirement Systems, P.O. Box 48380,
Olympia, WA 98504‐8380; or online from the DRS website at www.drs.wa.gov.
The City is the administrator of the Firefighters’ Pension Plan for all firefighters employed prior to March
1, 1970. The Firefighters’ Pension Plan is included within the City of Renton’s statements as a pension
trust fund. There is no separate GAAP‐based audited report. A schedule of employer contributions,
prepared by Milliman, Inc. is included in the Required Supplemental Information section. Additional
information from the actuarial report prepared for the Firefighters’ Pension Plan, by Milliman, Inc., may
be obtained by contacting the City of Renton, Finance Division, 1055 South Grady Way, Renton, WA
98057.
A. State Sponsored Pension Plans
Public Employees’ Retirement System (PERS)
Plan description. PERS was established by the state legislature in 1947 under the Revised Code of
Washington (RCW) chapter 41.40. PERS is a multiple‐employer cost‐sharing retirement system.
Membership in the system includes: elected officials; state employees; employees of the Supreme,
Appeals, and Superior Courts (other than judges currently in a judicial retirement system); employees of
legislative committees; community and technical colleges, college and university employees not in
national higher education retirement programs; judges of district and municipal courts; and employees
of local governments.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-34
PERS consists of three plans. PERS participants, who joined the PERS system by September 30, 1977, are
Plan 1 members. Plan 1 is closed to new members. Those who joined on or after October 1, 1977; and
by either, February 28, 2002 for state and higher education employees, or August 31, 2002 for local
government employees, are Plan 2 members unless they exercise an option to transfer their membership
to Plan 3. PERS participants joining the system on or after March 1, 2002 for state and higher education
employees, or September 1, 2002 for local government employees, have the irrevocable option of
choosing membership in either PERS Plan 2 or PERS Plan 3. The option must be exercised within 90 days
of employment. An employee is reported in Plan 2 until a choice is made. Employees who fail to choose
within 90 days default to PERS Plan 3.
Benefits provided. PERS plans provide retirement, disability, and death benefits to eligible members.
PERS Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members
are eligible for retirement after 30 years of service, or at the age of 60 with five years of service, or at
the age of 55 with 25 years of service. The monthly benefit is two percent of the average final
compensation (AFC) per year of service, capped at sixty percent. The AFC is the average of the member’s
24 highest consecutive service months. Plan 1 members who retire from inactive status prior to the age
of 65 may receive actuarially reduced benefits. Plan 1 members may elect to receive an optional cost of
living allowance (COLA) that provides an automatic annual adjustment based on the Consumer Price
Index. The adjustment is caped at three percent annually. To offset the cost of this annual adjustment
the benefit is reduced.
PERS Plan 2 members are vested after completion of five years of eligible service. Plan 2 members are
eligible for normal retirement at the age of 65 with five years of service. The monthly benefit is two
percent of the AFC per year of service. There is no cap on years of service credit and a COLA is granted
based on the Consumer Price Index, capped at three percent annually. The AFC is the average of the
member’s 60 highest paid consecutive months. Plan 2 members have the option to retire early with
reduced benefits.
PERS Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit component,
and member contributions finance a defined contribution component. The defined benefit portion
provides members a monthly benefit that is one percent of the AFC per year of service. There is no cap
on years of service credit. Plan 3 provides the same COLA as Plan 2. The AFC is the average of the
member’s 60 highest paid consecutive months. Effective June 7, 2006, Plan 3 members are vested in the
defined benefit portion of their plan after ten years of service; or after five years of service, if twelve
months of that service are earned after age 44; or after five service credit years earned in PERS Plan 2
by June 1, 2003. Plan 3 members are immediately vested in the defined contribution portion of their
plan.
The Judicial Benefit Multiplier (JBM) Program began January 1, 2007. This program gave eligible justices
and judges an option to increase the benefit multiplier used in their retirement benefit calculation for
their judicial service period of employment. Beginning January, 2007, any justice or judge who was in a
judicial position at that time could choose to join JBM. Any justice or judge elected or appointed to office
on or after January 1, 2007, who elects to join DRS membership will also be mandated into JBM. If they
have already established membership in PERS or TRS Plan 1 they will rejoin that plan, but if they have
never had membership they will be enrolled as a member of both PERS Plan 2 and JBM.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-35
Contributions. PERS defined benefit retirement benefits are financed from a combination of investment
earnings and employer and employee contributions. Each biennium, the state Pension Funding Council
adopts Plan 1 employer contribution rates, Plan 2 employer and employee contribution rates, and Plan
3 employer contribution rates. The methods used to determine contribution requirements are
established under state statute.
The required contribution rates expressed as a percentage of current‐year covered payroll, as of
December 31, 2018, were as follows:
2018 employer contributions were $1,879,300, $2,294,463, and $457,713 for Plans 1, 2, and 3,
respectively.
Public Safety Employee’s Retirement System (PSERS)
Plan description. The PSERS system was created by the 2004 Legislature and became effective July 1,
2006 under RCW 41.37. PSERS is a multiple‐employer cost‐sharing retirement system comprised of a
single defined benefit plan, PSERS Plan2. PSERS membership includes full‐time employees meeting
specific eligibility criteria that are employed by Department of Corrections, Department of Natural
Resources, Gambling Commissions, Liquor Control Board, Parks and Recreation Commission,
Washington State Patrol, Washington state counties, corrections departments of Washington state cities
except for Seattle, Tacoma, and Spokane, or correctional entities formed by PSERS employers under the
Interlocal Cooperation Act.
Benefits provided. PSERS provides retirement, disability, and death benefits to eligible members.
PSERS members are vested after an employee completes five years of eligible service, PSERS members
may retire at the age of 65 with five years of service, or at the age of 60 with at least ten years of PSERS
service credit, or at age 53 with twenty years of service with a monthly benefit of two percent of the
average final compensation (AFC). A cost of living allowance (COLA) is granted based on the Consumer
Price Index, capped at three percent annually. The AFC is the average of the member’s 60 highest paid
consecutive months.
Required Contribution Rates Employer Employee
Plan 1Plan 2Plan 3Plan 1Plan 2Plan 3
PERS
Members not participating in JBM
State agencies, local governmental units 12.65% 12.65% 12.65% 6.00% 7.41% **
Administrative fee 0.18% 0.18% 0.18%
Total 12.83% 12.83% 12.83% *
Members participating in JBM
Local governmental units 12.65% 12.65% 12.65% 12.26% 18.53% 7.5%***
Administrative fee 0.18% 0.18% 0.18%
Total 12.83% 12.83% 12.83% *
*Plan 3 defined benefit portion only.
** Variable from 5% to 15% based on rate selected by the member.
*** Minimum rate.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-36
PSERS members have the option to retire early with reduced benefits. PSERS members meeting specific
eligibility requirements have options available to enhance their retirement benefits. Some of these
options are available to their survivors, generally with reduced benefits.
Contributions. PSERS defined benefit retirement benefits are financed from a combination of investment
earnings and employer and employee contributions. Each biennium, the state Pension Funding Council
adopts Plan 2 employer and employee contribution rates. The employer and employee contribution
rates for Plan 2 are developed by the Office of the State Actuary to fully fund Plan 2. The methods used
to determine the contribution requirements are established under state statute.
The required contribution rates expressed as a percentage of current‐year covered payroll, as of
December 31, 2018, were as follows:
2018 employer contributions to PSERS Plan 2 were $15,723.
Law Enforcement Officers’ and Firefighters’ Retirement System (LEOFF)
Plan description. LEOFF was established by the state legislature in 1970 under the Revised Code of
Washington (RCW) chapter 41.26. LEOFF is a multiple‐employer cost‐sharing retirement system.
Membership in the system includes all full‐time, fully compensated, local law enforcement
commissioned officers, firefighters, and as of July 24, 2005, emergency medical technicians. LEOFF
membership is comprised primarily of non‐state employees, with Department of Fish and Wildlife
enforcement officers who were first included effective July 27, 2003, being an exception.
LEOFF consists of two separate defined benefit plans. LEOFF participants who joined the system by
September 30, 1977, are Plan 1 members. Plan 1 is closed to new members. Those who joined on or
after October 1, 1977, are Plan 2 members.
Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established by Initiative 790 to provide
governance of LEOFF Plan 2. The Board’s duties include adopting contribution rates and recommending
policy changes to the Legislature for the LEOFF Plan 2 retirement plan.
Benefits provided. LEOFF plans provide retirement, disability, and death benefits to eligible members.
LEOFF Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members
are eligible for retirement with five years of service at the age of 50. The benefit per year of service
calculated as a percent of final average salary (FAS) is as follows:
Required Contribution Rates Employer Employee
Plan 2Plan 2
PSERS
State agencies, local governmental units 12.20% 7.07%
Administrative fee 0.18%
Total 12.38%
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-37
Term of Service
Percent of Final
Average Salary
20 or more years 2.0%
10 but less than 20 years 1.5%
5 but less than 10 years 1.0%
A cost of living allowance (COLA) is granted based on the Consumer Price Index.
LEOFF Plan 2 members are vested after the completion of five years of eligible service. Plan 2 members
are eligible for retirement at the age of 53 with five years of service, or at age 50 with twenty years of
service. Plan 2 members receive a benefit of two percent of the FAS per year of service. FAS is based on
the highest consecutive 60 months. A COLA is granted based on the Consumer Price Index, capped at
three percent annually.
LEOFF members have the option to retire early with reduced benefits. LEOFF members meeting specific
eligibility requirements have options available to enhance their retirement benefits. Some of these
options are available to their survivors, generally with reduced benefits.
Contributions. LEOFF defined benefit retirement benefits are financed from a combination of investment
earnings, employer and employee contributions, and a special funding situation in which the state pays
through state legislative appropriations.
Employer and employee contribution rates are developed by the Office of the State Actuary to fully fund
the plans. Starting on July 1, 2000, Plan 1 employers and employees are not required to contribute as
long as the plan remains fully funded. Plan 2 employers and employees are required to pay at the level
adopted by the LEOFF Plan 2 Retirement Board. The methods used to determine contribution
requirements are established under state statute.
The required contribution rates expressed as a percentage of current‐year covered payroll, as of
December 31, 2018, were as follows:
2018 employer contributions to LEOFF Plan 2 were $801,240.
Required Contribution Rates Employer Employee
Plan 1Plan 2Plan 1Plan 2
LEOFF
Local governmental units N/A 5.25% N/A 8.75%
Administrative fee 0.18% 0.18%
Total 0.18% 5.43%
N/A Indicates data not applicable.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-38
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
As of June 30, 2018, the City reported its proportionate share of the net pension liability/(asset) as
follows:
The amount of the liability/(asset) reported above for LEOFF Plan 1 and LEOFF Plan 2 reflects a reduction
for the City’s collective liability to be paid by the State. The City recognized $507,305 as contribution
revenue for the State’s on behalf payment for 2018. The amount recognized by the City as its
proportionate share of the net pension liability/(asset), the portion of the City’s net pension
liability/(asset) to be paid by the State, and the total portion of the net pension liability/(asset) that was
associated with the City were as follows:
The collective net pension liability was measured as of June 30, 2018, and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2017, with
the results rolled forward to June 30, 2018 using standard update procedures. Employer contribution
transmittals received and processed by the DRS for the fiscal year ended June 30 are used as the basis
for determining each employer’s proportionate share of the collective pension amounts reported by the
DRS in the Schedules of Employer and Non‐employer Allocations for all plans except LEOFF Plan 1. LEOFF
Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF Plan 1
from 1971 through 2000 and the retirement benefit payments in fiscal year 2018. Historical data was
obtained from a 2011 study by the office of the State Actuary (OSA). In the fiscal year 2018, the State of
Washington contributed 87.12 percent of LEOFF Plan 1 employer contributions and all other employers
contributed the remaining 12.88 percent of employer contributions.
Liability Asset
PERS Plan 1 12,124,657$ ‐$
PERS Plan 2/3 5,883,465 ‐
PSERS Plan 2716 ‐
LEOFF Plan 1 ‐ (4,240,123)
LEOFF Plan 2 ‐ (9,173,012)
Total 18,008,838$ (13,413,135)$
Liability/(Asset)
LEOFF Plan 1 ‐ employer's proportionate
share (4,240,123)$
LEOFF Plan 1 ‐ State's proportionate share
of the net pension liability/(asset)
associated with the employer (28,680,087)
TOTAL (32,920,210)$
Liability/(Asset)
LEOFF Plan 2 ‐ employer's proportionate
share (9,173,012)$
LEOFF Plan 2 ‐ State's proportionate share
of the net pension liability/(asset)
associated with the employer (5,939,352)
TOTAL (15,112,364)$
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-39
LEOFF Plan 1 is fully funded and no further employer contributions have been required since June 2000.
If the plan becomes underfunded, funding of the remaining liability will require new legislation. The
allocation method the plan chose reflects the projected long‐term contribution effort based on historical
data. At June 30, 2018, the City’s proportionate share of the collective net pension liabilities was as
follows:
At December 31, 2018, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Proportionate Share Proportionate Share Change in
6/30/2017 6/30/2018 Proportion
PERS Plan 1 0.282530% 0.271486%‐0.011044%
PERS Plan 2/3 0.356727% 0.344584%‐0.012143%
PSERS Plan 2 0.065808% 0.057762%‐0.008046%
LEOFF Plan 1 0.235931% 0.233551%‐0.002380%
LEOFF Plan 2 0.468330% 0.451824%‐0.016506%
Deferred Outflows of Resources PERS Plan 1PERS Plan 2/3 PSERS Plan 2LEOFF Plan 1LEOFF Plan 2Total
Differences between expected and
actual experience ‐$ 721,159$ 5,308$ ‐$ 491,380$ 1,217,847$
Changes of assumptions ‐ 68,827 76 ‐ 5,193 74,096
Net difference between projected
and actual earnings on pension
plan investments ‐ ‐ ‐ ‐ ‐
Changes in proportion and
differences between City
contributions and proportionate
share of contributions ‐ 600,407 ‐ ‐ 175,538 775,945
City contributions subsequent to
the measurement date 950,175 1,385,432 8,048 ‐ 403,364 2,747,019
Total 950,175$ 2,775,825$ 13,432$ ‐$ 1,075,475$ 4,814,907$
Deferred Inflows of Resources PERS Plan 1PERS Plan 2/3 PSERS Plan 2LEOFF Plan 1LEOFF Plan 2Total
Differences between expected and
actual experience ‐$ 1,030,087$ 734$ ‐$ 212,998$ 1,243,819$
Changes of assumptions ‐ 1,674,386 4,429 ‐ 1,316,493 2,995,308
Net difference between projected
and actual earnings on pension
plan investments 481,827 3,610,367 9,650 344,236 1,605,401 6,051,481
Changes in proportion and
differences between City
contributions and proportionate
share of contributions ‐ 445,800 ‐ ‐ 364,896 810,696
Total 481,827$ 6,760,640$ 14,813$ 344,236$ 3,499,788$ 11,101,304$
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-40
For the year ended December 31, 2018 the City recognized pension expense as follows:
For PERS Plan 1, $950,175, for PERS Plan 2/3, $1,385,432, for PSERS Plan 2, $8,048, and for LEOFF Plan 2
$403,364, reported as deferred outflows of resources related to contributions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2019.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized as pension expense as follows:
Pension Expense
PERS Plan 1 513,828$
PERS Plan 2/3 (120,152)$
PSERS Plan 2 10,281$
LEOFF Plan 1 (648,922)$
LEOFF Plan 2 (364,978)$
Total (609,943)$
Differences Between Projected and Actual Earnings on Plan Investments
Year PERS Plan 1PERS Plan 2/3 PSERS Plan 2LEOFF Plan 1LEOFF Plan 2
2019 21,081$ (312,638)$ (1,427)$ 329$ (147,109)$
2020 (105,331) (875,309) (2,460) (77,656) (390,177)
2021 (316,067) (1,906,983) (4,512) (211,506) (840,511)
2022 (81,510) (515,437) (1,251) (55,403) (227,604)
Total (481,827)$ (3,610,367)$ (9,650)$ (344,236)$ (1,605,401)$
The recognition period is a closed, five‐year period for all plans.
Differences Between Expected and Actual Experience
PERS Plan 2/3 PSERS Plan 2LEOFF Plan 2
Recognition
Period (Years)1 7.2 12.3 10.5
Year (Inflows) Outflows (Inflows) Outflows (Inflows) Outflows
2019 (310,484)$ 260,991$ (70)$ 1,694$ (24,769)$ 116,150$
2020 (167,299) 107,017 (70) 1,694 (24,769) 116,150
2021 (131,500) 107,014 (70) 1,694 (24,769) 53,586
2022 (131,500) 107,017 (70) 43 (24,764) 31,613
2023 (131,500) 107,017 (70) 25 (24,764) 31,614
Thereafter (157,804) 32,103 (384) 158 (89,163) 142,267
Total (1,030,087)$ 721,159$ (734)$ 5,308$ (212,998)$ 491,380$
The recognition period for each plan is equal to the average of the expected remaining service lives of all
employees provided with pensions through the pension plan, which was determined at the beginning of the
measurement period.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-41
Actuarial assumptions. The total pension liability was determined using the following actuarial
assumptions.
Inflation 2.75%
Salary Increases 3.50%
Investment rate of return 7.40%
Mortality rates were based on the RP‐2000 Combined Healthy Table and Combined Disabled Table
published by the Society of Actuaries. The Office of the State Actuary applied offsets to the base table
and recognized future improvements in mortality by projecting the mortality rates using 100 percent
Scale BB. Mortality rates are applied on a generational basis meaning each member is assumed to receive
additional mortality improvements in each future year, throughout his or her lifetime.
Changes of Assumptions
PERS Plan 2/3 PSERS Plan 2LEOFF Plan 2
Recognition
Period (Years)1 7.2 12.3 10.5
Year (Inflows) Outflows (Inflows) Outflows (Inflows) Outflows
2019 (270,064)$ 54,844$ (392)$ 20$ (138,579)$ 2,359$
2020 (270,064) 11,182 (392) 20 (138,579) 2,359
2021 (270,061) 848 (392) 20 (138,579) 475
2022 (270,061) 848 (392) 8 (138,579) ‐
2023 (270,061) 848 (392) 2 (138,579) ‐
Thereafter (324,075) 257 (2,469) 6 (623,598) ‐
Total (1,674,386)$ 68,827$ (4,429)$ 76$ (1,316,493)$ 5,193$
The recognition period for each plan is equal to the average of the expected remaining service lives of all
employees provided with pensions through the pension plan, which was determined at the beginning of the
measurement period.
Recognition
Period (Years)1
7.2 10.5
Year (Inflows) Outflows (Inflows) Outflows
2019 (81,554) 113,284$ (50,199)$ 21,518$
2020 (71,981) 113,284 (50,199) 21,518
2021 (69,587) 113,284 (41,847) 21,518
2022 (69,587) 113,284 (39,759) 17,075
Thereafter (153,091) 147,269 (182,892) 93,909
(445,800)$ 600,407$ (364,896)$ 175,538$
The recognition period for each plan is equal to the average of the expected
remaining service lives of all employees provided with pensions through the
pension plan, which was determined at the beginning of the measurement
period.
Changes in Proportion and Differences Between City Contributions and
Proportionate Share of Contributions
PERS Plan 2/3 LEOFF Plan 2
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-42
The actuarial assumptions used in the June 30, 2017, valuation were based on the results of the 2007‐
2012 Experience Study Report. Additional assumptions for subsequent events and law changes are
current as of the 2017 actuarial valuation report.
The long‐term expected rate of return on pension plan investments was determined using a building‐
block method in which the Washington State Investment Board (WSIB) used a best estimate of expected
future rates of return (expected returns net of pension plan investment expense but including inflation)
to develop each major asset class. Those expected returns make up one component of WSIB’s Capital
Market Assumptions (CMAs). The CMAs contain the following three pieces of information for each class
of assets the WSIB currently invest in:
Expected annual return
Standard deviation of the annual return
Correlations between the annual returns of each asset class with every other asset class
The WSIB uses the CMAs and their target asset allocation to stimulate future investment returns over
various time horizons.
The long‐term expected rate of return of 7.5 percent approximately equals the median of the simulated
investment returns over a fifty‐year time horizon, adjusted to remove or dampen any short‐term
changes to WSIB’s CMAs that aren’t expected over the entire fifty year measurement period.
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s
target asset allocation as of June 30, 2018, are summarized in the following table:
The inflation component used to create the table above is 2.20 percent, and represents WSIB’s most
recent long‐term estimate of broad economic inflation.
Discount rate. The discount rate used to measure the total pension liability was 7.40 percent for all
plans. To determine the discount rate, an asset sufficiency test included an assumed 7.50 percent long‐
term discount rate to determine funding liabilities for calculating future contribution rate requirements.
(All plans use 7.50 percent except LEOFF Plan 2, which has assumed 7.40 percent.) Consistent with the
long‐term expected rate of return, a 7.40 percent future investment rate of return on invested assets
was assumed for the test.
Asset Class Target Allocation
Lont‐Term Expected
Real Rate of Return
Fixed Income 20.00% 1.70%
Tangible Assets 7.00% 4.90%
Real Estate 18.00% 5.80%
Global Equity 32.00%6.30%
Private Equity 23.00%9.30%
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-43
Contributions from plan members and employers are assumed to continue to be made at contractually
required rates (including PERS Plan 2/3, PSERS Plan 2, and SERS Plan2/3 employers, whose rates include
a component for the PERS Plan1 liability). Based on those assumptions, the pension plan’s fiduciary net
position was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long‐term expected rate of return of 7.40 percent on pension plan investments
was applied to determine the total pension liability.
Sensitivity of the Net Pension Liability/(Asset) to Changes in the Discount Rate. The following presents
the City’s proportionate share of the net pension liability/(asset), calculated using the discount rate of
7.40 percent, as well as what the net pension liability/(asset) would be if it were calculated using a
discount rate that is one percentage point lower (6.40 percent) or one percentage point higher (8.40
percent) than the current rate.
B. Firefighters’ Pension
Plan Description ‐ The Firefighters’ Plan (Plan) is a closed, single‐employer defined benefit pension plan
administered by the City of Renton through the firefighters’ pension board. The plan provides pensions
for firefighters that were employed prior to March 1, 1970, when the LEOFF retirement system was
established.
The firefighters’ pension board consists of five members: the Mayor who serves as chair of the board,
the chairperson of the Council Finance Committee, and three members elected by secret ballot of the
retired firefighters for two‐year terms.
Plan Membership – Membership is limited to active members of the Firefighters’ Pension Plan (FPP) as
of March 1, 1970. On that date, the Washington Law Enforcement Officers’ and Firefighters’ System
(LEOFF) was established. The plan is closed to new members. At December 31, 2018, FPF membership
consisted of the following:
Plan
1% Decrease
6.40%
Current
Discount Rate
7.40%
1% Increase
8.40%
PERS Plan 1 14,900,447$ 12,124,657$ 9,720,263$
PERS Plan 2/3 26,911,108$ 5,883,465$ (11,356,855)$
PSERS Plan 2 74,351$ 716$ (57,064)$
LEOFF Plan 1 (3,373,100)$ (4,240,123)$ (4,986,580)$
LEOFF Plan 2 (1,219,839)$ (9,173,012)$ (15,659,750)$
Inactive employees or beneficiaries currently receiving benefits 21
Inactive employees or beneficiaries receiving full retirement through LEOFF 5
Total 26
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-44
Benefits Provided ‐ All benefit terms are in statutes RCW 41.16, 41.18, and 41.26. The Firefighters’
Pension Plan (FPP) provides retirement, disability, and death benefits. Each firefighter in service on
March 1, 1970 receives the greater of the benefit payable under the Washington Law Enforcement
Officers’ and Firefighters’ Retirement (LEOFF) System and the benefits available under the provisions of
prior law. Where benefits under the old law exceed those under the new law for any firefighter, the
excess benefits are paid from the FPF of the city employing the member on March 1, 1970.
All members are retired and drawing benefits. Benefit terms provide for cost‐of‐living adjustments to
each member’s retirement benefit. There are two types of increases: escalation by salary in proportion
to current salary of rank from which the firefighter retired or increase proportionate to the increase in
the Seattle‐area consumer price index, with the change computed annually. Regardless of the change in
the consumer price index, benefits are increased at least two percent each year. The former applies to
firefighters who retired from service after 1969, their survivors, and to firefighters who retired from duty
disability (but not their survivors) after 1961. The latter applies to all other types of monthly benefits.
Benefits and refunds of the Plan are recognized when due and payable in accordance with the terms of
the Plan. For 2018, $192,624 was paid for pension benefit payments.
Contributions. As long as the FPP provides for benefits to covered members, the City will be eligible to
receive a share of the State’s distribution of the fire insurance premium taxes. The amount the City
receives is 25% of all monies received by the State from taxes on fire insurance premiums. Contributions
can also come from taxes paid pursuant to the provisions of RCW 41.16.060. This statute requires that
each municipality levy up to $0.45 (only $0.225 of which can be in excess of the property tax limit
pursuant to RCW 84.52.043) per $1,000 of assessed valuation, based on reports by a qualified actuary,
to maintain the fund. 2018 employer contributions to the Firefighters’ Pension Plan were $154,275.
Investments
Investment Policy – The pension plan’s policy in regard to the allocation of invested assets is established
and may be amended by a majority vote of its members. It is the policy of the FPF board to pursue an
investment strategy that emphasizes prudent and professional standards. The primary investment
requirements, in order of priority, are: safety, compliance, liquidity, and return on investment. The Board
has designated daily operations, internal controls, and investment decisions to the City’s finance
director. No significant investment policy changes were made during the reporting year. Investments are
recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and
Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease
to investment assets and investment income.
Rate of Return – For the year ended December 31, 2018, the annual money‐weighted rate of return on
pension plan investments, net of pension plan investment expense, was 1.26%. The money‐weighted
rate of return expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
Concentrations – For the year ended December 31, 2018, 2% of the plan’s fiduciary net position was
invested in US Federal Agency Securities, 7% was invested in certificates of deposit, 9% was invested in
FNMA Zero Coupon bonds, and 14% was invested in US Treasury Strips.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-45
Net Pension Liability/(Asset)
The City’s net pension liability was measured as of December 31, 2018, and the total pension liability
used to calculate the net pension liability/(asset) of $(7,110,612) was determined by an actuarial
valuation as of that date.
The plan’s fiduciary net position of $9,702,514 is 374% of the plan’s total pension liability at December
31, 2018.
Actuarial assumptions. The total pension liability was determined by an actuarial valuation as of
December 31, 2018, using the following actuarial assumptions.
Inflation 2.25%
Salary increases 3.25%
Investment rate of return 4.00%
Actuarial cost method Entry age normal
Mortality rates were based on the RP‐2000 Mortality Table (combined healthy) with generational
projection using 100% of Projection Scale BB, with ages set back one year for males and forward one
year for females (set forward two years for disabled members).
The long‐term expected rate of return on pension plan investments was determined using a building‐
block method in which best estimate ranges of expected future real rates of return (expected returns,
net of pension plan investment expense and inflation) are developed. We used the weighted expected
returns of the City’s portfolio of cash, US Treasuries (to be held to maturity), and receivables to develop
the long‐term expected rate of return.
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(a) ‐ (b)
Balances at January 1, 2018 2,784,194$ 9,619,368$ (6,835,174)$
Changes for the Year
Interest on total pension liability 94,105 ‐ 94,105
Effect of economic/demographic gains or losses ‐ ‐ ‐
Effect of assumptions chages or inputs (93,773) ‐ (93,773)
Benefit payments (192,624) (192,624) ‐
Contributions from state fire insurance premium tax ‐ 154,275 (154,275)
Net investment income ‐ 121,495 (121,495)
Administrative expenses ‐ ‐ ‐
Net Changes (192,292) 83,146 (275,438)
Balances at December 31,2018 2,591,902$ 9,702,514$ (7,110,612)$
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-46
The best‐estimate range for the long‐term expected rate of return for each major asset class included in
the pension plan’s target asset allocation as of December 31, 2018, are summarized in the following
table:
Discount rate. The discount rate used to measure the total pension liability was 4.00 %. The projection
of cash flows used to determine the discount rate assumed City contributions were equal to revenue
received from Fire Insurance premiums and the amount received would increase at the inflation rate of
2.25%. Based on this assumption, the pension plan’s fiduciary net position was projected to be available
to make all projected future benefit payment of current plan members. Therefore, the long‐term
expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
Sensitivity of the net pension liability to changes in the discount rate. The following presents the net
pension liability of the City, calculated using the discount rate of 4.00%, as well as what the City’s net
pension liability would be if it were calculated using a discount rate that is one percentage point lower
(3.00%), or one percentage point higher (5.00%), that the current rate.
Asset Class Index
Long‐Term Expected Real
Rate of Return
Cash Citigroup 90‐Day T‐Bills 0.33%
Short‐Term Bonds Barclays 1‐3 Year Gov/Cred 1.46%
Long‐Term Bonds Barclays Long Gov/Cred 2.23%
Assumed Inflation ‐ Mean 2.25%
Long‐Term Expected Rate of Return 4.00%
1% Decrease
3.00%
Current
Discount Rate
4.00%
1% Increase
5.00%
Total Pension Liability 2,785,622$ 2,591,902$ 2,420,962$
Fiduciary Net Position 9,702,514 9,702,514 9,702,514
Net Pension Liability (6,916,892) (7,110,612) (7,281,552)
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-47
Pension Expense and Deferred Outflows or Resources and Deferred Inflows of Resources Related to
Pensions
As of December 31, 2018, the deferred inflows and outflows of resources are as follows:
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense as follows:
*Note that additional future deferred inflows and outflows of resources may impact these numbers.
The Firefighters’ Pension Plan is currently overfunded. Changes in the net pension asset and deferred
outflows resulted in a reduction of City pension expense in the amount of $319,626.
NOTE 6. OTHER POST EMPLOYMENT BENEFITS
General Information
The City implemented Governmental Accounting Standards Board (GASB) Statement 75, Accounting and
Financial Reporting for Postemployment Benefits Other Than Pensions for calendar year 2018 financial
reporting. Previously, the City accounted for its other postemployment benefit (OPEB) expenses related
to the Health Plan based on a computed annual required contribution (ARC) and an amount to amortize
unfunded actuarial accrued liabilities.
Plan Description
In accordance with the Revised Code of Washington (RCW) 41.26, the City administers a single‐employer
defined benefit healthcare plan (the Health Plan) for law enforcement officers and firefighters employed
prior to October 1, 1977. The City maintains a standalone internal service fund, LEOFF 1 Retirees
Healthcare Fund. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement
75.
Deferred Inflows of
Resources
Deferred Outflows
of Resources
Differences between expected and actual experience ‐$ ‐$
Changes of assumptions ‐ ‐
Net difference between projected and actual earnings
on pension plan investments ‐ 436,137
Changes in proportion ‐ ‐
Contributions subsequent to the measurement date ‐ ‐
Total ‐$ 436,137$
Year ended December 31 Amount
2019 170,332$
2020 131,098
2021 91,805
2022 42,902
2023 ‐
Thereafter*‐
436,137$
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-48
The Health Plan’s actuary is Milliman, Inc. The report may be obtained by contacting the City of Renton,
Finance Division, 1055 South Grady Way, Renton, WA 98057. The Health Plan does not issue a separate
standalone financial report.
Benefits Provided
The Health Plan provides medical, prescription drug, dental, Medicare Part B premiums, long‐term care,
and vision expenses for LEOFF Plan 1 retirees. Dependent spouses and children are not covered. There
are currently 85 retirees covered under the plan and the plan is closed to new entrants.
Funding Policy
Funding for LEOFF 1 retiree healthcare costs is provided entirely by the City as required by the Revised
Code of Washington (RCW) 41.26. The City does not require retiree contributions.
OPEB Liability
The OPEB liability was determined by an actuarial valuation as of the valuation date, calculated based
on the discount rate below, and was then projected forward to the measurement date. There have been
no significant changes between the valuation date and fiscal year ends. The City’s total OPEB Liability of
$43,028,675 was measured as of December 31, 2018.
Total OPEB Liability
12/31/2017 12/31/2018
Total OPEB Liability $ 45,802,831 $ 43,028,675
Covered employee payroll $ ‐ $ ‐
Total OPEB liability as of a % of
covered employee payroll N/A N/A
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-49
Actuarial Methods and Assumptions
An actuarial valuation was completed as of January 1, 2017. Projections of benefits for financial reporting
purposes are based on the substantive plan (the plan as understood by the employer and plan members)
and include the types of benefits provided at the time of each valuation. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short‐term volatility in
actuarial accrued liabilities and the actuarial value of assets, consistent with the long‐term perspective
of the calculations.
Valuation Date January 1, 2017
Measurement Date December 31, 2018
Actuarial Cost Method Entry Age Normal
Amortization Method 30‐year, closed as of January 1, 2018
Remaining Amortization Period 21 Years
Actuarial Assumptions:
Investment Rate of Return 3.75%
Long Term Care Trend Rate 4.50%
Medical Trend
Medical and Dental Trend (before inclusion of
excise tax) Year Pre‐65 Post‐65
2017‐2018 6.80% 7.50%
2018‐2019 6.30% 6.80%
2019‐2020 5.70% 6.00%
2020‐2021 5.20% 5.20%
2021‐2023 5.10% 5.10%
Grading down to an ultimate of 3.9%
The Bond Buyer General Obligation 20‐bond municipal bond index for bonds that mature in 20 years was
3.44% as of December 28, 2017. Rounding this to the nearest ¼% resulted in a discount rate of 3.5% as
of the December 31, 2017 measurement date. The Bond Buyer General Obligation 20‐bond municipal
bond index for bonds that mature in 20 years is 4.10% as of December 27, 2018. Rounding to the nearest
¼% results in a discount of 4% as of the December 31, 2018 measurement date.
Mortality rates were based on the following assumptions:
Service‐retired members were based on the RP‐2000 Mortality Table (combined healthy) with
generational projection using 100% of Projection Scale BB, with ages set back one year for males
and set forward one year for females.
Disabled members were based on the RP‐2000 Mortality Table (combined healthy) with
generational projection using 100% of Projection Scale BB, with ages set forward two years.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-50
Changes in the Total OPEB Liability
The following table presents the change in the total OPEB liability as of December 31, 2018.
Sensitivity of the total OPEB liability to Changes in the Discount Rate.
The following presents the total OPEB liability of the City as well as what the total OPEB liability would
be if it were calculated using trend rates that are 1% point lower or 1% point higher than the current
rate.
The following presents the total OPEB liability of the City, calculated using the current healthcare cost
trend rates as well as what the City’s total OPEB liability would be if it were calculated using trend rates
that are 1% point lower or 1% higher than the current trend rates.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources related to
OPEB
For the year ended December 31, 2018 the City recognized OPEB Expense of ($1,188,013). As of
December 31, 2018 the City reported no deferred outflows or inflows of resources related to OPEB.
Changes in Total OPEB Liabilty
Balance as of 12/31/2017 45,802,831$
Changes for the Year:
Service Cost ‐
Interest on total OPEB Liability 1,575,580
Effect of plan changes ‐
Effect of Economic/demographic gains or losses ‐
Effect of assumptions changes or inputs (2,763,593)
Expected benefit payment (1,586,143)
Balance as of 12/31/2018 43,028,675$
1% Decrease
3.00%
Current
Discount Rate
4.00%
1% Increase
5.00%
Total December 31,2018 OPEB Liability 48,833,903$ 43,028,675$ 38,216,507$
1% Decrease
Current
Trend Rate 1% Increase
Total December 31,2018 OPEB Liability 38,032,278$ 43,028,675$ 48,920,411$
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-51
NOTE 7. CONTINGENCIES
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not determinable
at this time, it is the opinion of City’s legal counsel, that the resolution of these matters will not have a
material adverse effect on the financial condition of the City and that the City’s insurance policies and/or
self‐insurance reserves are adequate to pay all known or pending claims.
The City participates in a number of federal and state assisted programs. These grants are subject to
program compliance audits by the Single Audit Act. Such audits could result in reimbursement to grantor
agencies for expenditures disallowed under the terms of the grants. The amount of expenditure that
may be disallowed, if any, cannot be determined at this time and the City’s management believes that
such disallowances, if any, will be immaterial.
NOTE 8. RISK MANAGEMENT
The City of Renton is exposed to various risks of loss related to tort; theft of, damage to, and destruction
of assets; errors and omissions; injuries to employees; and natural disasters. The City of Renton protects
itself against unforeseen losses by utilizing a three‐pronged risk management approach. First, the City
self‐funds first level losses through its Insurance Fund. Second, insurance and excess insurance is
purchased to cover medium and large losses. Third, the City reserves the right to utilize the provisions
of Chapter 35A.31.060 RCW to fund catastrophic or uninsured losses. This State statute allows cities to
levy a non‐voted property tax increase to pay for uninsured claims. There were no settlements in excess
of the insurance coverage in any of the three prior fiscal years.
The risk management internal service fund is funded by charges to the City of Renton’s other funds and
is based primarily upon the contributing funds’ claims experience. Liabilities of the fund are reported
when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated.
Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of
the process to estimate the claims liability is not an exact amount as it depends on many complex factors,
such as, inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated
periodically to consider the effects of inflation, recent claim settlement trends (including frequency and
amount of pay‐outs), and other economic and social factors. The estimate of the claims liability also
includes amounts for incremental claim adjustment expenses related to specific claims and other claim
adjustment expense regardless of whether allocated to specific claims. Estimated recoveries, for
example from salvage or subrogation, are another component of the claims liability estimate.
The City's Risk Management Program is administered under the authority of the Human Resources and
Risk Management Administrator, with claims being processed by the carriers shown below.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-52
An analysis of the insurance deductibles and self‐insured retention levels, limits of insurance, and
carriers for the major types of coverage are as follows:
Type of Coverage
Risk
Retention
Occurrence Aggregate Amount Carrier
Property –
Expires 07/01/2019
$50,000 $400,000,000 (per
occurrence subject to
annual aggregate &
sub‐limits)
Alliant Property
Insurance
Program (APIP)
Cyber Liability –
Expires 07/01/2019
$50,000 $25,000,000
(subject to sub‐
limits)
APIP
Liability –
Expires 01/01/2019
$250,000 $20,000,000
(per occurrence)
Safety
National/Great
American
Auto Physical Damage –
Expires 07/01/2019
$25,000
ACV or Replacement
Cost; per Occurrence
APIP
Equipment Breakdown –
Expires 07/01/2019
$10,000* $100,000,000 APIP
Employee Fidelity/Crime –
Expires 07/01/2019
$10,000 $2,500,000 National Union
Fire
Airport Liability –
Expires 01/01/2019
$0 $100,000,000 National Union
Fire
Underground Storage Tank –
Expires 01/01/2019
$2,500 $1,000,000 Great American
Excess Workers’ Comp –
Expires 01/01/2019
$500,000 Statutory Safety National
Excess Employee Health –
Expires 01/01/2019
$250,000 $18,305,220 Optum
* There is a 24‐hour utility interruption clause, prior to the deductible becoming applicable.
As of December 31, 2018, the City had accrued the following amounts for outstanding claims:
Coverage
Total Claims Payable
12/31/2018
Property & liability 41,916$
Workers' compensation 417,735
Employee health 1,367,200
TOTAL 1,826,850$
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-53
*The decline in Property & Liability ending IBNR is due to the City no longer being a member of WCIA
and therefore claims are settled at a faster rate. Also, the City settled a number of claims that were
outstanding in prior years.
NOTE 9. INTERFUND TRANSACTIONS
A. INTERFUND TRANSFERS
The following is the composition of interfund transfers for the year ended December 31, 2018:
During the year transfers were used to fund anticipated capital projects and equipment purchases.
All transfers either occur on a regular basis or are consistent with the purpose of the fund making the
transfer. Transfers that occur within the governmental funds are eliminated on the government‐wide
statement of activities.
2018
Property &
Liability
Workers'
Compensation
Employee
Health Totals
IBNR claims at beginning of the year 250,407$ 657,108$ 1,196,100$ 2,103,615$
Current year and changes in estimates*(1,527,098) (479,682) (9,467,321) (11,474,101)
Claims payments 1,318,606 240,309 9,638,421 11,197,336
IBNR claims at end of the year 41,916$ 417,735$ 1,367,200$ 1,826,850$
2017
Property &
Liability
Workers'
Compensation
Employee
Health Totals
IBNR claims at beginning of the year 75,395$ 1,269,320$ 1,216,200$ 2,560,915$
Current year and changes in estimates (1,143,594) (852,521) (9,658,521) (11,654,636)
Claims payments 1,318,606 240,309 9,638,421 11,197,336
IBNR claims at end of the year*250,407$ 657,108$ 1,196,100$ 2,103,615$
Internal
Service Fund
Capital
Improvement 1% for Art
Municipal
Facilities CIP
Equipment
Rental
Business‐Type
Capital Assets Total
Transfer Out:
Governmental Funds:
General 250,000 ‐ 1,000,000 1,491,548 ‐ 2,741,548
Arterial Street 670,000 ‐ ‐ ‐ ‐ 670,000
Comm. Dev. Impact Mitigation ‐ ‐ ‐ ‐ ‐ ‐
Transportation Impact Mitigation 505,000 ‐ ‐ ‐ ‐ 505,000
Municipal Facilities CIP ‐ ‐ ‐ ‐ ‐ ‐
Capital Improvement ‐ 15,000 ‐ ‐ ‐ 15,000
Enterprise Funds:
Waterworks Utility ‐ ‐ ‐ 16,813 ‐ 16,813
Solid Waste ‐ ‐ ‐ 1,582 ‐ 1,582
Airport ‐ ‐ ‐ 13,820 ‐ 13,820
Internal Service Funds:
Insurance ‐ ‐ ‐ 7,910 ‐ 7,910
Equipment Rental ‐ ‐ ‐ ‐ ‐ ‐
Governmental Capital Assets ‐ ‐ ‐ ‐ 289,050 289,050
Total 1,425,000 15,000 1,000,000 1,531,673 289,050 4,260,723
Governmental Funds
Transfer In:
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-54
TheCitymadethefollowingoneͲtimetransfersduringtheyearendingDecember31,2018:
1. $250thousandtransferfromtheGeneralFundtotheCapitalImprovementFundtofundguardrail
maintenanceandimprovements.
2. $1milliontransferfromtheGeneralFundtotheMunicipalFacilitiesFundtofundfurnitureand
equipmentpurchasesforfirestation15.
3.$1.2milliontransferfromtheGeneralFundtotheEquipmentRentalFundtofundthepurchaseof
takehomevehiclesforPolice.
4. $670thousandtransferfromtheArterialStreetFundand$505thousandfromtheTransportation
ImpactMitigationFundtotheCapitalImprovementFundtofundvarioustransportationcapital
projects.
5.$15thousandtransferfromtheCapitalImprovementFundtothe1%forArtFund
6. VarioustransfersfromtheGeneralFund,enterprisefunds,andtheInsuranceFundtotheEquipment
RentalFundtofundpreviouslyunbudgetedequipmentpurchases.
B. INTERFUNDRECEIVABLESANDPAYABLES
Thecompositionofinterfundreceivables/payablesasofDecember31,2018isasfollows:
Duefrom/to:
TheoutstandingbalancebetweentheGeneralFundandtheGeneralDebtandMunicipalFacilitiesfunds
resultsfromthetimelagbetweenthedatetheREETtransactionwasrecordedintheaccountingsystem
andwhenthecashwasactuallytransferred.
TheoutstandingbalancebetweentheGeneralFundandtheGolfCourseFundresultsfromthetimelag
betweenwhenwaterpurchasesweremadebytheParksdepartmentandwhenthecashwasactually
transferredtotheGolfCourse.
TheoutstandingbalancebetweentheHotel/MotelTaxFundandtheGeneralFundresultsfromthetime
lagbetweentheawardandspendingoflodgingtaxfundsforaqualifiedCityeventandwhenthecash
wasactuallytransferredtotheGeneralFund.
Advancesfrom/to:
ReceivableFund PayableFund Amount
General Hotel/MotelTax 5,000$
GeneralDebt General 481,758
GolfCourse General 13,033
MunicipalFacilities General 251,790
Total 751,581$
ReceivableFund PayableFund Amount
DueWithin
OneYear
InternalServiceͲInsuranceFund GeneralFund 350,000$175,000$
Total 350,000$175,000$
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-55
TheamountpayablefromtheGeneralFundwasaworkingcapitalloanfortenantimprovementcostsat
theCity’s200Millbuilding.Therepaymentoftheloanwillbefundedwiththefutureleaserevenue
fromthetenant.
NOTE10.LONGTERMDEBT
GeneralObligationBonds
GeneralobligationbondsaredirectobligationsoftheCityforwhichitsfullfaithandcreditarepledged.
DebtserviceforvoterͲapprovedbonds,whichtheCityhasnone,wouldbefundedbyspecialproperty
taxlevies.DebtserviceforCityCouncilauthorizedbonds(councilmaticbonds)isfundedfromregular
propertytaxesorgeneralrevenues,andisgenerallypaidfromdebtservicefunds.
GeneralObligationBondsoutstandingatyearͲendareasfollows:
x 2010LimitedTaxGeneralObligationrefundingbondswhichrefundedaportionofthe2001
limitedtaxgeneralobligationbondsfortheconstructionofadowntownparkingfacility.
x 2011LimitedTaxGeneralObligationbondswhichfundedthedevelopmentand
constructionof2newlibraries.
x 2013LimitedTaxGeneralObligationqualifiedenergyconservationbonds(QECB)which
providedfundingforstreetlightimprovements.
x 2015(A&B)LimitedTaxGeneralObligationrefundingbondsrefundedaportionofthe
2006limitedtaxgeneralobligationbondsfortheconstructionofSouthLakeWashington
infrastructureimprovements.
Otherintergovernmentaldebt,backedbythefullfaithandcreditoftheCity:
x 2009intergovernmentaldebtrelatedtotheFireDistrict#40assettransferasaresultof
theBensonHillannexation.
x 2009(A&B)intergovernmentaldebtrelatedtoacquisition,construction,andequippingof
theSCOREfacility.Pursuanttoaninterlocalagreement,theCityisobligatedtopay36
percentofthedebtserviceontheSCOREbonds.
RevenueBonds
Revenuebondsarepayablefromwater,sewer,andstormrevenuesgeneratedfromthecharges
forservicerevenuesinthosefunds.TheCityisrequiredbybondcovenantstosecureparity
reservesfortheserevenuebonds.Thecurrentparityreservesare$2,810,145.
RevenueBondsoutstandingatyearͲendareasfollows:
x 2012Water/SewerRevenueRefundingBonds(Ordinance#5672)wereissuedinthe
amountof$9,190,000anddatedDecember7,2012.Theaverageinterestrateis2.5%.
Thesebondswereissuedforthepurposeofrefundingaportionofthe2004Water/Sewer
RevenueBonds.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-56
2016 Water/Sewer Revenue Refunding Bonds (2008A) (Ordinance #5812) were issued in
the amount of $9,385,000 and dated October 20, 2016. The average interest rate is 1.73%.
These bonds were issued for the purpose of refunding a portion of the 2008 (A)
Water/Sewer Revenue Bonds (Exempt).
2017 Water/Sewer Revenue Refunding Bonds (2007 & 2007 Ref) (Ordinance #5846) were
issued in the amount of $6,283,168 and dated September 6, 2017. The average interest
rate is 1.85%. These bonds were issued for the purpose of partially refunding the 2007
Water/Sewer Revenue Bonds and 2007 Water/Sewer Revenue Refunding Bonds (02).
State of Washington Public Works Trust Fund Loans (PWTFL)
PWTFL are the direct responsibility of the City. At year‐end the City has three outstanding loans,
with a remaining balance of $1,898,266. All of the remaining loans are for water capital
improvements. Remaining loans are repaid from water system revenues.
PWTFL outstanding at year‐end are as follows:
Maplewood Water Treatment Improvement loan was to fund the costs to eliminate quality
problems in water from the Maplewood wellfield wells.
CT Pipeline for Wells RW‐1, RW‐2 and RW‐3 loan is to construct the CT detention pipeline
for wells RW‐1, RW‐2 and RW‐3 at Liberty Park.
Maplewood Drinking Water Treatment Improvement loan is to construct the drinking
water treatment improvements at Maplewood.
Compensated Absences
Compensated absences are paid by those funds that have employees. These are mostly payable
from the General Fund and Waterworks Utility Fund.
Capital Leases
The City leases certain machinery and equipment. These lease payments are payable from the
Equipment Rental Fund.
The following schedules summarize the long‐term debt transactions of the City for the year ended
December 31, 2018. The first table reflects total annual debt service requirements to maturity,
while the second table provides detailed information on all long‐term debt.
Year Principal Interest Principal Interest
2019 5,476,547 2,154,485 2,590,818 514,812
2020 5,688,322 1,943,374 2,630,818 470,315
2021 5,922,558 1,703,151 2,675,818 423,557
2022 3,366,147 1,445,421 2,690,517 376,009
2023 2,630,282 1,308,027 2,757,647 327,678
2024‐2028 14,476,707 4,952,868 10,837,648 668,245
2029‐2033 6,935,400 2,760,186 ‐ ‐
2034‐2038 8,559,000 1,135,177 ‐ ‐
Totals 53,054,964 17,402,688 24,183,265 2,780,616
Governmental Activities Business‐Type Activities
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-57
Issue Name Interest Rates Maturity Date
Original Issue
Amount
Beginning
Balance
01/01/2018 Additions Deductions
Ending Balance
12/31/2018
Due Within
One Year
GOVERNMENTAL‐TYPE DEBT:
Limited General Obligation Bonds:
2010 GO Refunding Bonds 3.00%‐4.50% 12/1/2021 $ 6,170,000 5,980,000$ ‐ 1,395,000$ 4,585,000$ 1,460,000$
2011 GO Library Bonds 2.00%‐5.00% 12/1/2022 16,715,000 7,820,000 ‐ 1,660,000 6,160,000 1,700,000
2013 GO QECB 3.22% 7/1/2028 3,200,000 2,360,000 ‐ 210,000 2,150,000 215,000
2015 (A) GO S LK WA Infr Refunding (BQ) 3.00%‐4.00% 12/1/2028 8,825,000 8,825,000 ‐ ‐ 8,825,000 ‐
2015 (B) GO S LK WA Infr Refunding (Tax) 0.50%‐2.07% 12/1/2020 3,695,000 2,400,000 ‐ 875,000 1,525,000 890,000
Unamortized (discount)/premium 1,708,663 ‐ 248,574 1,460,089 ‐
38,605,000 29,093,663 ‐ 4,388,574 24,705,089 4,265,000
2009 FD 40 Loan for acquisition of FS13 3.75% 9/1/2028 6,798,085 4,366,839 ‐ 340,075 4,026,764 352,947
2009 (A) SCORE Tax Exempt 4.00%‐5.00% 1/1/2022 2,953,800 991,800 ‐ ‐ 991,800 ‐
2009 (B) SCORE BABS 3.00%‐6.62% 1/1/2039 28,090,800 25,623,000 ‐ 831,600 24,791,400 858,600
Total Intergovernmental Debt 37,842,685 30,981,639 ‐ 1,171,675 29,809,964 1,211,547
Other Long‐Term Liabilities:
Employee Leave Benefits ‐ Compensated Absences 3,494,004 2,796,443 2,698,144 3,592,303 2,584,725
Other Post Employment Benefits (OPEB)*45,802,831 ‐ 2,774,156 43,028,675 ‐
Net Pension Liability 19,848,896 ‐ 5,870,177 13,978,720 ‐
Capital Leases 3.33% 12/1/2019 169,245 70,978 ‐ 35,129 35,849 35,849
Total Other Long‐Term Liabilities 169,245 69,216,710 2,796,443 11,377,606 60,635,546 2,620,575
$ 76,616,930 129,292,011$ 2,796,443$ 16,937,855$ 115,150,599$ 8,097,122$
BUSINESS‐TYPE DEBT:
Revenue Bonds:
2012 Water/Sewer Refunding 2.00%‐3.00% 12/1/2027 $ 9,190,000 9,010,000$ ‐ 100,000$ 8,910,000$ 220,000$
2016 Water/Sewer Refunding (2008A)1.73% 12/1/2027 9,385,000 9,120,000 ‐ 675,000 8,445,000 740,000
2017 Water/Sewer Refunding (2007 & 2007
Ref)1.85% 12/1/2022 6,283,168 6,283,168 ‐ 1,353,168 4,930,000 1,285,000
Unamortized (discount)/premium 506,191 ‐ 50,619 455,572 ‐
Total Revenue Bonds 24,858,168 24,919,359 ‐ 2,178,787 22,740,572 2,245,000
Public Works Trust Fund Loans:
Maplewood Water Treatment Improvement 0.50% 7/1/2021 567,831 121,204 ‐ 30,301 90,903 30,301
Construct CT Pipeline for Wells 0.50% 7/1/2022 814,527 214,349 ‐ 42,870 171,480 42,870
Maplewood Water Treatment Improvement 0.50% 7/1/2024 5,150,000 1,908,530 ‐ 272,647 1,635,883 272,647
6,532,358 2,244,083 ‐ 345,818 1,898,266 345,818
Other Long‐Term Liabilities:
Employee Leave Benefits ‐ Compensated Absences 684,699 516,392 508,327 692,764 482,587
Net Pension Liability 5,964,825 ‐ 1,934,706 4,030,118 ‐
Total Other Long‐Term Liabilities 6,649,524 516,392 2,443,034 4,722,882 482,587
$ 31,390,526 33,812,966$ 516,392$ 4,967,638$ 29,361,720$ 3,073,405$
$ 108,007,456 $ 163,104,978 $ 3,312,835 $ 21,905,493 $ 144,512,319 $ 11,170,527
*GASB Statement Number 75 changed OPEB reporting from net to total
Schedule of Changes of Long‐Term Debt
TOTAL ALL FUNDS
TOTAL BUSINESS‐TYPE DEBT
TOTAL GOVERNMENTAL‐TYPE DEBT
Total Public Works Trust Fund Loans
Total General Obligation Bonds
Other Intergovernmental ‐ Backed by full faith and credit of the City:
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-58
Debt Limit Capacity
State law provides that debt cannot be incurred in excess of the following percentages of the value of
the taxable property of the City: 1.5 percent without a vote of the people provided the indebtedness
with a vote is 1 percent or less; 2.5 percent with a vote of the people; 5.0 percent with a vote of the
people, provided the indebtedness in excess of 2.5 percent is for utilities; and 7.5 percent with a vote of
the people provided the indebtedness in excess of 5.0 percent is for open space development and parks
facilities. Table 16 in the Statistical Section shows the computation of legal debt margin for general and
special purpose capacities for the City of Renton.
Estimated Arbitrage Rebate
The City engages an outside agency to calculate its’ arbitrage rebate liability on outstanding tax‐exempt
bonds and certificates of participation under Section 148(f) of the Internal Revenue Code. No additional
rebate was found due for any revenue or general obligation bonds for 2018.
Issued/Refunded Debt
The City did not issue new or refund any debt in 2018.
NOTE 11. JOINT VENTURES
A joint venture is a legal entity or other organization that results from a contractual agreement and that
is owned, operated, or governed by two or more participants as a separate and specific activity subject
to joint control in which the participants retain (a) an on‐going financial interest or (b) an on‐going
financial responsibility. The City participates in two joint ventures, both of which are sanctioned by the
provisions and terms of the Interlocal Cooperation Act pursuant to Chapter 39.34 RCW.
VALLEY COMMUNICATIONS CENTER
The Valley Communications Center (Valley Com) was established August 20, 1976, when an Interlocal
Agreement was entered into by four original participating municipal corporations, including the cities of
Renton, Kent, Auburn, and Tukwila. Federal Way was formally admitted in 2000. The initial duration of
the agreement was five years, and thereafter is automatically extended for consecutive five‐year
periods.
The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved
consolidated emergency communications (dispatch) services for police, fire, and medical aid to the five
participating cities and to several subscribing agencies that include: King County Fire Districts 2, 20, 44,
47; City of Pacific Police Department; City of Black Diamond Police Department; City of Des Moines Police
Department; City of Algona Police Department; Enumclaw Fire; Valley Regional Fire Authority; North
Highline Fire Department; South King Fire & Rescue; Vashon Island Fire & Rescue; King County Airport;
Puget Sound Regional Fire Authority; Renton Regional Fire Authority, KC Sheriff’s Office; and KC Medic
One. Separate agreements between Valley Com and the subscribing agencies have been executed,
which set forth conditions of services and rates charged.
The City made payments totaling $2,694,113 to support Valley Com’s operating costs during the year
ended December 31, 2018.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-59
The City reports its share of equity interest in the Governmental Activities column within the
Government‐wide financial statements under non‐current assets – investments in joint ventures. The
following is condensed financial information as of December 31, 2018 related to Valley Communications
Center:
Complete Financial Statements for Valley Com can be obtained from the Valley Communications Center,
23807 – 98th Avenue South, Kent, WA 98031.
SOUTH CORRECTIONAL ENTITY (SCORE)
The South Correctional Entity (SCORE), a consolidated correctional facility, was established February 25,
2009, when an interlocal agreement was entered into by seven participating municipal governments
(“owner cities”) of Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila. This
agreement was amended and restated October 1, 2009 and named the City of Des Moines as the “host
city”. Pursuant to a separate “Host City Agreement” dated October 1, 2009, the host city will not enjoy
the same equity position as the original owner cities until all debts issued are paid and the host city fulfills
all of its obligations as outlined in the Agreement.
The purpose of the interlocal operation, SCORE, is to serve the Member Cities and Subscribing Agencies
which are in need of correctional facilities. SCORE provides correctional services and functions incidental
thereto, for the purpose of detaining arrestees and sentenced offenders in the furtherance of public
safety and emergencies within the jurisdiction of the Member Cities. Separate agreements between
SCORE and subscribing agencies have been executed, which set forth conditions of services and rates
charged.
Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility was
provided by bonds issued by the South Correctional Entity Facility Public Development Authority (the
“SCORE PDA”), a public development authority chartered by the City of Renton pursuant to RCW
35.21.730 through 35.21.755 and secured by the full faith and credit of the Cities of Auburn, Burien,
Federal Way, Renton, SeaTac, and Tukwila (the owner cities). The SCORE PDA issued $86 million in special
obligation bonds in 2009 to carry out the facility development project.
Member City Percent of Equity 2017 Equity Balance 2018 Distribution 2018 Equity Balance
Auburn 21.68% 5,290,137$ 750,724$ 6,040,861$
Federal Way 17.60% 4,222,772 681,619 4,904,391
Kent 29.03% 7,215,101 874,974 8,090,075
Renton 20.62% 5,212,721 670,091 5,882,812
Tukwila 8.40% 2,677,982 272,987 2,950,969
Grand Totals 100.00% 24,618,713$ 3,250,394$ 27,869,108$
Valley Communications Center
2018 Owner Cities Equity Allocation
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-60
The following is a summary of the debt service requirements, for each owner city:
The City of Renton made payments totaling $5,968,412 to support SCORE’s operating costs during the
year ended December 31, 2018.
The City reports its share of equity interest in the Governmental Activities column within the
Government‐wide financial statements under non‐current assets – investments in joint ventures. The
following is condensed financial information as of December 31, 2018 related to SCORE:
Complete financial statements for SCORE and SCORE PDA can be obtained at SCORE, 20817 17th Avenue
South, Des Moines, WA 98198.
Auburn Burien Federal Way Renton SeaTac Tukwila
Year 31%4%18%36%3%8%
2019 1,684,513 217,356 978,104 1,956,208 163,017 434,713
2020 1,683,081 217,172 977,273 1,954,546 162,879 434,344
2021 1,682,378 217,081 976,865 1,953,730 162,811 434,162
2022 1,650,016 212,905 958,074 1,916,148 159,679 425,811
2023‐2027 8,215,718 1,060,093 4,770,417 9,540,834 795,070 2,120,185
2028‐2032 8,170,414 1,054,247 4,744,112 9,488,223 790,685 2,108,494
2033‐2037 8,123,685 1,048,217 4,716,978 9,433,956 786,163 2,096,435
2038‐2039 3,235,624 417,500 1,878,749 3,757,499 313,125 835,000
Totals 34,445,429$ 4,444,571$ 20,000,572$ 40,001,144$ 3,333,429$ 8,889,144$
Debt Service Allocation to Owner Cities
Member City Percent of Equity
2017 Equity
Balance 2018 Distribution
2018 Equity
Balance
Auburn 29.00% 3,147,747$ 949,658$ 4,097,405$
Burien 4.00% 346,865 179,397 526,262
Des Moines 2.00% 163,335 178,510 341,845
Federal Way 24.00% 2,353,747 1,131,823 3,485,570
Renton 29.00% 3,016,168 1,141,371 4,157,539
SeaTac 5.00% 456,976 262,464 719,440
Tukwila 7.00% 719,422 311,686 1,031,108
Grand Totals 100.00% 10,204,260$ 4,154,909$ 14,359,169$
South Correctional Entity (SCORE)
2018 Owner Cities Equity Allocation
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-61
NOTE 12. AIRPORT LEASES
The majority of the Municipal Airport’s revenue is derived from leases which convey the right to use land
and various airport facilities which are accounted for as operating leases. Minimum future rental on
noncancellable operating leases are as follows:
Of the amounts shown above, one tenant comprises 61% of all future minimum lease rentals. The
tenant’s multiple leases expire in 2030.
A summary of assets leased or available for tenant use is as follows:
NOTE 13. CAPITAL LEASE
In December, 2014 the City entered into a lease agreement as lessee for financing the acquisition of
three Xerox copiers valued at $169,245. The equipment has a five year estimated useful life. This year,
$33,849 was included in depreciation expense and accumulated depreciation at December 31, 2018 was
$135,396.
The future minimum lease obligations and the net present value of these lease payments as of December
31, 2018, were as follows:
For the Year Ended
December 31:
2019 3,170,450$
2020 2,714,357
2021 2,720,506
2022 2,811,468
2023 2,865,443
Thereafter 22,839,341
37,121,564$
Cost 28,944,048$
Less: Accumulated Depreciation (9,437,050)
Carrying Value 19,506,998$
Year ending December 31:
Governmental
Activities
2019 36,492$
Total 36,492
Less amount representing interest (643)
Present value of minimum lease payments 35,849$
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-62
NOTE 14. TAX ABATEMENT
As of December 31, 2018, the City provides tax abatements through two programs ‐ the Affordable Multi‐
Family Housing Property Tax Exemption and the New Job Business & Occupation Tax Credit.
Multifamily Housing Property Tax Exemption
Under the provisions of the Preservation Tax Exemption program (RCW 84.14), the City has taken
advantage of the option to provide targeted property tax exemption to existing property owners who
agree to restrict rents and provide income‐eligibility for a portion of the units within their properties.
The purpose of this program incentivizes the creation of affordable and improved housing quality and
prevent displacement for citizens that are in the most need. The City has a comprehensive program that
has specific parameters for project eligibility and duration of exemption.
Provided a property meets the eligibility criteria and the property owner continues to fulfill the
requirements of affordable housing, the property will receive a property tax exemption on the appraised
value of improvements, regardless of assessed valuation. This exemption is not extended to the
appraised value of land or non‐eligible improvements on the same parcel. Eligibility criteria includes, at
a minimum: the property owner must provide affordable housing to low‐income households for 20% of
the multi‐units available for rent and the property must be located in one of the designated “residential
target areas”. All exemptions granted after July 2007 range from 8‐12 years depending on the exemption
option selected. There are no provisions to recapture abated taxes. As of December 31, 2018 the City
has seven projects that are subject to property tax abatement.
New Jobs Business & Occupation Tax Credit
The purpose of the New Jobs Business & Occupation Tax Credit is to provide a temporary tax credit
relating to new businesses to encourage business growth or relocation into the City. In order to qualify
for the tax credit, businesses must create fifty or more new full time employment positions in the first
year of business in the City. The credit is equal to one thousand dollars for each new full‐time
employment position created and is used to reduce the amount of Business & Occupation tax owed by
the business. A business may claim the credit under this program for the first twelve consecution
reporting quarters or three reporting years.
Tax Abatement Program
Tax abated in the
fiscal year ending
12/31/2018
Property Tax Exemption for Affordable Multi-Family Housing $ 936,571
New Jobs Business & Occupation Tax Credit $ 141,559
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-63
State of Washington Sales Tax Exemptions
The State of Washington has tax abatements that allow for sales/use tax exemptions and deferrals.
Purchases for computer hardware, computer peripherals, or software used primarily in the
development, design and engineering of aerospace products or providing aerospace services or sales are
exempt from sales and use tax per RCW 82.08.975 and 82.12.975. The exemption also applies to sales
of labor and services rendered in respect to installing the computer hardware, peripherals or software
used to develop or design aerospace products. The eligible purchaser must present a Buyers’ Retail
Sales Tax Exemption Certificate to the seller at the time of purchase.
The State of Washington is prohibited by the law to disclose detail on the amount of abatements
provided under these exemption and deferrals.
NOTE 15. CHANGE IN ACCOUNTING PRINCIPLE
Implementation of GASB 75, Accounting and Financial Reporting for Postemployment Benefits Other
than Pensions, resulted in the recognition of a total OPEB liability of $45,802,831 in the City’s Insurance
Fund at December 31, 2017 where no liability was previously reported in the fund statements. The effect
of the change is reported as a decrease of beginning net position of $45,802,831 in the Insurance Fund
column of the Combining Statement of Revenues, Expenditures, and Changes in Net Position – Internal
Service Funds and in the Governmental Activities Internal Service Funds column of the Statement of
Revenues, Expenses, and Changes in Net Position – Proprietary Funds.
Previously, under GASB 45, the City reported a net OPEB liability of $10,255,143 in the Governmental
Activities column of the Statement of Net Position. The effect of the change from reporting under GASB
45 to reporting under GASB 75 is reported as a decrease in beginning net position of $35,547,688 in the
Governmental Activities column of the Statement of Activities.
Implementation of GASB 84, Fiduciary Activities, resulted in changes to amounts previously reported in
the fiduciary fund statements as follows:
Agency funds are now referred to as Custodial funds.
Cash and liabilities in the amount of $1,427,191 reported in the Special Deposits agency
fund at December 31, 2017 do not meet the requirements under GASB 84 to be reported
in the fiduciary funds, so they are now reported in the City’s General Fund. This had no
effect on the fund balance/net position of either fund or governmental activities net
position.
Net position was not previously reported for agency funds, but is now reported for
custodial funds. In addition, the change in net position was not previously reported for
agency funds, but is now reported for custodial funds.
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-64
Changes to the Statement of Fiduciary Net Position at December 31, 2017 are summarized as follows:
NOTE 16. SUBSEQUENT EVENTS
On March 26, 2019 the City sold a total of $20,845,000 (par amount) in Limited Tax General Obligation
Bonds via competitive sale. The bonds were split for two different projects: Parks Improvements
($12,960,000) and the South Lake Washington Revitalization area, funded with State Local
Revitalization Funding ($7,885,000).
City Council authorized the bond issues on February 11, 2019, for the issuance of Limited Tax General
Obligation (LTGO) bonds for public improvements within the City’s designated Local Revitalization Area
for public improvements funded through the use of Local Revitalization Financing (LRF). Previously, on
November 19, 2018, City Council approved an ordinance authorizing the issuance of Limited Tax General
Obligation (LTGO) bonds for park improvements funded through a portion of the City’s property tax levy
capacity.
Special Deposit
Agency Fund,
As Originally
Reported
Reclassified to
General Fund
Reclassified to
Net Position
Custodial Fund,
As Reported
under GASB 84
ASSETS
Cash & cash equivalents 2,143,984$ (1,427,191)$ ‐$ 716,793$
Investments at fair value 215,566 ‐ ‐ 215,566
Receivables (net of allowances)‐
Interest & penalties 4,081 ‐ ‐ 4,081
TOTAL ASSETS 2,363,631 (1,427,191) ‐ 936,440
LIABILITIES
Accounts payable 4,000 (4,000) ‐ ‐
Custodial accounts 2,359,631 (1,423,191) (936,440) ‐
TOTAL LIABILITIES 2,363,631 (1,427,191) (936,440) ‐
NET POSITION
Restricted for:
Other governments ‐ ‐ 936,440 936,440
TOTAL NET POSITION ‐$ ‐$ 936,440$ 936,440$
2018 Comprehensive Annual Financial Report NOTES TO THE FINANCIAL STATEMENTS City of Renton, Washington
Basic Financial Statements, 4-65
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 51,718,932 $ 51,593,145 $ 60,649,282 $ 9,056,137
Licenses and permits 5,840,213 5,957,405 5,473,107 (484,298)
Intergovernmental revenues 1,729,785 1,910,437 2,995,526 1,085,089
Charges for services 2,663,379 2,663,379 2,661,055 (2,324)
Fines and forfeits 2,874,082 4,046,487 4,292,891 246,404
Contributions 20,000 20,000 26,326 6,326
Interfund revenues 2,696,444 2,696,444 2,621,708 (74,736)
Interest revenue 355,000 355,000 502,418 147,418
Miscellaneous revenue 278,622 286,430 633,217 346,787
Total revenues 68,176,457 69,528,727 79,855,530 10,326,803
EXPENDITURES
Current:
General government 13,662,075 14,047,653 12,760,777 1,286,876
Judicial 2,710,201 2,700,644 2,727,689 (27,045)
Public safety 37,730,302 39,185,619 39,761,125 (575,506)
Utilities 486,334 484,744 457,024 27,720
Economic environment 8,848,463 9,115,374 8,176,460 938,914
Health and human services 1,382,682 1,480,684 1,425,419 55,265
Culture and recreation 2,900 79,279 48,977 30,302
Total current 64,822,957 67,093,997 65,357,471 1,736,526
Capital outlay:
Public safety 25,500 25,500 33,897 (8,397)
Culture and recreation ‐ 50,000 ‐ 50,000
Total capital outlay 25,500 75,500 33,897 41,604
Total expenditures 64,848,457 67,169,497 65,391,368 1,778,130
Excess (deficiency) of revenues over expenditures 3,328,000 2,359,230 14,464,162 12,104,933
OTHER FINANCING SOURCES (USES)
Transfers out ‐ (2,466,084)(2,462,275)3,809
Total other financing sources (uses)‐ (2,466,084)(2,462,275)3,809
Net change in fund balances 3,328,000 (106,854)12,001,887 12,108,742
FUND BALANCE ‐ JANUARY 1 22,708,066 22,708,066 22,708,066 ‐
FUND BALANCE ‐ DECEMBER 31 $ 26,036,066 $ 22,601,212 $ 34,709,953 $ 12,108,742
Budgeted Amounts
City of Renton
General
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Required Supplementary Information, 5-1
NOTES TO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – GENERAL FUND
NOTE 1. BUDGETARY BASIS OF ACCOUNTING
The City of Renton’s biennial budget procedures are mandated by the Chapter 35A.33 of the Revised
Code of Washington (RCW). The budget, as adopted, constitutes the legal authority for expenditures.
The biennial budget is adopted with budgetary control at the fund level, so expenditures may not legally
exceed appropriations at that level of detail. Transfers or revisions within funds are allowed, but only
the City Council has the legal authority to increase or decrease a given fund’s annual budget. This is
accomplished by City ordinance. Adopted budgets lapse at year‐end and must be re‐appropriated
(carried forward) the next fiscal year.
The Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual is presented
on a budgetary basis (non‐GAAP). The budgetary basis of accounting is substantially the same as the
modified accrual basis of accounting in all governmental funds except for the following differences:
Perspective differences – the General Fund is structured differently for budgeting purposes than
it is for reporting under GAAP. The Schedule of Revenues, Expenditures, and Changes in Fund
Balance – Budget and Actual for the General Fund is presented on the budgetary basis for the
legally adopted budget of the General Fund. The differences are as follows:
o The City maintains several sub‐funds of the General Fund that are budgeted for
separately, but are included in the General Fund for GAAP reporting. The sub‐funds are:
Community Services – fund is used to account for the operational activities of the
Parks and Trails, Parks Planning and Natural Resources, and Recreation and
Neighborhoods divisions of the Community Services department.
Streets – fund is used to account for Public Works administration and street
maintenance.
Community Development Block Grant – fund is used primarily to account for the
City’s Community Development Block Grant.
Museum – fund is used to account for the City’s historical museum.
Farmer’s Market – fund is used to account for the City’s farmer’s market.
o The Leased City Properties fund is budgeted as a special revenue fund, however, it does
not meet the definition of a special revenue fund under GAAP and, therefore, is reported
as part of the General Fund for GAAP reporting. The fund is used to account for the City’s
operations of various leased facilities.
o Consolidation of the funds results in the elimination of transfers between the
consolidated funds for GAAP reporting.
Basis differences – certain payments and receipts are budgeted for in a manner that is
inconsistent with GAAP:
o Interfund payments for indirect cost allocations and reimbursement of payroll costs
associated with capital projects are budgeted as interfund revenues, however, these
payments are reclassified as a reduction of the expenditure for GAAP reporting.
o Interfund loan payments are budgeted as debt service expenditures, however, these
payments are reclassified as a reduction of the interfund loan payable for GAAP reporting.
o Façade Improvement loans issued under the Community Development Block Grant
(CDBG) program are budgeted as current expenditures, however, these loans are
reclassified to notes receivable for GAAP reporting.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Required Supplementary Information, 5-2
NOTES TO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – GENERAL FUND A reconciliation of Revenues, Expenditures, and Changes in Fund Balance budgetary basis to GAAP basis is as follows: GeneralCommunity Services StreetsCommunity Development Block Grant MuseumFarmer's MarketLeased City PropertiesSub‐fund ConsolidationTotal Perspective DifferencesInterfund Revenues Interfund loan paymentCDBG Loans IssuedTotal Basis DifferencesTotalGAAP BasisREVENUESTaxes $60,649,282 $10,633,312 $7,965,240 $ ‐ $239,129 $ ‐ $ ‐ $ ‐ $ 18,837,681 $ ‐ $ ‐ $ ‐ $ ‐ $79,486,963 Licenses and permits 5,473,107 1,350 ‐ ‐ ‐ ‐ ‐ ‐ 1,350 ‐ ‐ ‐ ‐ 5,474,457 Intergovernmental revenues 2,995,526 42,446 1,547,052 243,037 ‐ 36,278 ‐ ‐ 1,868,813 ‐ ‐ ‐ ‐ 4,864,339 Charges for services 2,661,055 1,503,791 174,921 ‐ ‐ 2,230 ‐ ‐ 1,680,942 ‐ ‐ ‐ ‐ 4,341,997 Fines and forfeits 4,292,891 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4,292,891 Contributions 26,326 264,151 ‐ ‐ ‐ 14,307 ‐ ‐ 278,458 ‐ ‐ ‐ ‐ 304,784 Interfund revenues 2,621,708 242,430 861,348 ‐ ‐ ‐ ‐ ‐ 1,103,778 (3,725,486) ‐ ‐ (3,725,486) ‐ Interest revenue 502,418 71,663 561,929 ‐ 701 1,252 5,935 ‐ 641,480 ‐ ‐ ‐ ‐ 1,143,898 Miscellaneous revenue 633,217 638,247 3,148 ‐ ‐ 35,672 1,065,234 ‐ 1,742,301 ‐ ‐ ‐ ‐ 2,375,518 Total revenues 79,855,530 13,397,390 11,113,638 243,037 239,830 89,739 1,071,169 ‐ 26,154,803 (3,725,486) ‐ ‐ (3,725,486) 102,284,847 EXPENDITURESCurrent:General government 12,760,777 ‐ ‐ ‐ ‐ ‐ 835,760 ‐ 835,760 (1,606,359) ‐ ‐ (1,606,359) 11,990,178 Judicial 2,727,689 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,727,689 Public safety 39,761,125 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 39,761,125 Utilities 457,024 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (212,780) ‐ ‐ (212,780) 244,244 Transportation ‐ ‐ 10,948,741 ‐ ‐ ‐ ‐ ‐ 10,948,741 (861,348) ‐ ‐ (861,348) 10,087,393 Economic environment 8,176,460 ‐ ‐ 83,173 ‐ ‐ ‐ ‐ 83,173 (802,569) ‐ (83,173) (885,742) 7,373,891 Health and human services 1,425,419 746,145 ‐ 199,864 ‐ ‐ ‐ ‐ 946,009 ‐ ‐ ‐ ‐ 2,371,428 Culture and recreation 48,977 12,027,978 ‐ ‐ 245,521 108,843 ‐ ‐ 12,382,342 (242,430) ‐ ‐ (242,430) 12,188,889 Total current 65,357,471 12,774,123 10,948,741 283,037 245,521 108,843 835,760 ‐ 25,196,025 (3,725,486) ‐ (83,173) (3,808,659) 86,744,837 Capital outlay:Public safety 33,897 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 33,897 Transportation ‐ ‐ 9,900 ‐ ‐ ‐ ‐ ‐ 9,900 ‐ ‐ ‐ ‐ 9,900 Culture and recreation ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total capital outlay 33,897 ‐ 9,900 ‐ ‐ ‐ ‐ ‐ 9,900 ‐ ‐ ‐ ‐ 43,797 Debt service:Principal payment ‐ ‐ ‐ ‐ ‐ ‐ 175,000 ‐ 175,000 ‐ (175,000) ‐ (175,000) ‐ Total debt service ‐ ‐ ‐ ‐ ‐ ‐ 175,000 ‐ 175,000 ‐ (175,000) ‐ (175,000) ‐ Total expenditures 65,391,368 12,774,123 10,958,641 283,037 245,521 108,843 1,010,760 ‐ 25,380,925 (3,725,486) (175,000) (83,173) (3,983,659) 86,788,634 Excess (deficiency) of revenues over expenditures 14,464,162 623,267 154,997 (40,000) (5,691) (19,104) 60,409 ‐ 773,878 ‐ 175,000 83,173 258,173 15,496,213 OTHER FINANCING SOURCES (USES)Transfers out (2,462,275) (12,440) (276,000) ‐ ‐ ‐ ‐ 9,167 (279,273) ‐ ‐ ‐ ‐ (2,741,548)Transfers in ‐ ‐ ‐ ‐ ‐ 9,167 ‐ (9,167) ‐ ‐ ‐ ‐ ‐ ‐ Sale of capital assets ‐ ‐ 13,000 ‐ ‐ ‐ ‐ ‐ 13,000 ‐ ‐ ‐ ‐ 13,000 Insurance Recoveries ‐ ‐ 19,597 ‐ ‐ ‐ ‐ ‐ 19,597 ‐ ‐ ‐ ‐ 19,597 Total other financing sources (uses) (2,462,275) (12,440) (243,403) ‐ ‐ 9,167 ‐ ‐ (246,676) ‐ ‐ ‐ ‐ (2,708,951)Net change in fund balances 12,001,887 610,827 (88,406) (40,000) (5,691) (9,937) 60,409 ‐ 527,202 ‐ 175,000 83,173 258,173 12,787,262 Perspective DifferencesBasis Differences2018 Comprehensive Annual Financial Report City of Renton, Washington
Required Supplementary Information, 5-3
City of Renton
Schedule of the City's Proportionate Share of the Net Pension Liability/(Asset)
Measurement Date of June 30 *
Last 10 Fiscal Years
PERS Plan 1 2018 2017 2016 2015 2014
City's proportion of the net pension liability/(asset)0.271486% 0.282530% 0.276331% 0.275830% 0.273241%
City's proportionate share of the net pension
liability/(asset)**12,124,657$ 13,406,269$ 14,840,276$ 14,428,474$ 13,764,644$
City's covered payroll 36,344,451$ 35,481,222$ 32,889,898$ 31,005,185$ 29,656,856$
City's proportionate share of the net pension
liability/(asset) as a percentage of its covered payroll 33.36% 37.78% 45.12% 46.54% 46.41%
Plan fiduciary net position as a percentage of the
total pension liability 63.22% 61.24% 57.03% 59.10% 61.19%
* This schedule will be built prospectively until it contains ten years of data.
** 2016 amount includes $280,481 in net pension liability transferred to the RFA on 6/30/16 to avoid skewing
percentage of covered payroll ratio.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Required Supplementary Information, 5-4
City of Renton
Schedule of the City's Proportionate Share of the Net Pension Liability/(Asset)
Measurement Date of June 30 *
Last 10 Fiscal Years
PERS Plan 2/3 2018 2017 2016 2015 2014
City's proportion of the net pension liability/(asset)0.344584% 0.356727% 0.343835% 0.345072% 0.337183%
City's proportionate share of the net pension
liability/(asset)**5,883,465$ 12,394,558$ 17,311,821$ 12,329,619$ 6,815,686$
City's covered payroll 36,036,413$ 35,045,479$ 32,370,185$ 30,618,109$ 29,147,610$
City's proportionate share of the net pension
liability/(asset) as a percentage of its covered payroll 16.33% 35.37% 53.48% 40.27% 23.38%
Plan fiduciary net position as a percentage of the
total pension liability 95.77% 90.97% 85.82% 89.20% 93.29%
* This schedule will be built prospectively until it contains ten years of data.
** 2016 amount includes $327,194 in net pension liability transferred to the RFA on 6/30/16 to avoid skewing
percentage of covered payroll ratio.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Required Supplementary Information, 5-5
City of Renton
Schedule of the City's Proportionate Share of the Net Pension Liability/(Asset)
Measurement Date of June 30 *
Last 10 Fiscal Years
PSERS Plan 2 2018 2017 2016 2015 2014
City's proportion of the net pension liability/(asset)0.057762% 0.065808% 0.065158% 0.042991% 0.464430%
City's proportionate share of the net pension
liability/(asset)716$ 27,967$ 11,892$ 7,846$ (6,725)$
City's covered payroll 226,589$ 233,001$ 211,427$ 124,200$ 125,311$
City's proportionate share of the net pension
liability/(asset) as a percentage of its covered payroll 0.32% 12.00%5.62%6.32%‐5.37%
Plan fiduciary net position as a percentage of the
total pension liability 99.79% 90.41% 95.08% 95.08% 105.01%
* This schedule will be built prospectively until it contains ten years of data.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Required Supplementary Information, 5-6
City of Renton
Schedule of the City's Proportionate Share of the Net Pension Liability/(Asset)
Measurement Date of June 30 *
Last 10 Fiscal Years
LEOFF Plan 1 2018 2017 2016 2015 2014
City's proportion of the net pension liability/(asset)0.233551% 0.235931% 0.231059% 0.229885% 0.225836%
City's proportionate share of the net pension
liability/(asset)**(4,240,123)$ (2,430,764)$ (2,784,772)$ (2,770,622)$ (2,738,919)$
State's proportionate share of the net pension
liability/(asset) associated with the City (28,680,087) (24,212,271) (16,524,364) (18,740,418) (18,525,980)
Total (32,920,210)$ (26,643,035)$ (19,309,136)$ (21,511,040)$ (21,264,899)$
City's covered payroll ‐$ ‐$ ‐$ ‐$ ‐$
City's proportionate share of the net pension
liability/(asset) as a percentage of its covered payroll N/A N/A N/A N/A N/A
Plan fiduciary net position as a percentage of the
total pension liability 144.42% 123.74% 127.36% 127.36% 127.36%
* This schedule will be built prospectively until it contains ten years of data.
** 2016 amount includes $1,325,025 in net pension asset transferred to the RFA on 6/30/16 to avoid skewing
percentage of covered payroll ratio.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Required Supplementary Information, 5-7
City of Renton
Schedule of the City's Proportionate Share of the Net Pension Liability/(Asset)
Measurement Date of June 30 *
Last 10 Fiscal Years
LEOFF Plan 2 2018 2017 2016 2015 2014
City's proportion of the net pension liability/(asset)0.451824% 0.468330% 0.947284% 0.954715% 0.947521%
City's proportionate share of the net pension
liability/(asset)**(9,173,012)$ (2,723,948)$ (9,736,185)$ (9,812,561)$ (12,574,011)$
State's proportionate share of the net pension
liability/(asset) associated with the City (5,939,352) (4,215,723) (1,592,656) (925,241) (870,262)
Total (15,112,364)$ (6,939,671)$ (11,328,841)$ (10,737,802)$ (13,444,273)$
City's covered payroll 14,669,121$ 14,650,540$ 28,694,750$ 27,709,532$ 26,365,930$
City's proportionate share of the net pension
liability/(asset) as a percentage of its covered payroll ‐62.53%‐18.59%‐33.93%‐35.41%‐47.69%
Plan fiduciary net position as a percentage of the
total pension liability 118.50% 106.04% 111.67% 111.67% 116.75%
* This schedule will be built prospectively until it contains ten years of data.
** 2016 amount includes $3,066,692 in net pension asset transferred to the RFA on 6/30/16 to avoid skewing
percentage of covered payroll ratio.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Required Supplementary Information, 5-8
Schedule of Employer Contributions
WA Department of Retirement Systems
As of December 31
Last 10 Fiscal Years
PERS Plan 1 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Contractually Required Contribution 1,879,300$ 1,717,805$ 1,619,494$ 2,190,238$ 1,253,454$ N/A N/A N/A N/A N/A
Contributions in relation to the
contractually required contribution 1,879,300 1,717,805 1,619,494 2,190,238 1,253,454 N/A N/A N/A N/A N/A
Contribution deficiency (excess)‐$ ‐$ ‐$ ‐$ ‐$ N/A N/A N/A N/A N/A
Covered payroll 37,103,778$ 35,120,529$ 33,737,587$ 48,318,549$ 30,448,215$ N/A N/A N/A N/A N/A
Contributions as a percentage of covered
payroll 5.06% 4.89% 4.80% 4.53% 4.12% N/A N/A N/A N/A N/A
PERS Plan 2/3 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Contractually Required Contribution 2,752,176$ 2,375,793$ 2,067,865$ 2,743,908$ 1,490,022$ N/A N/A N/A N/A N/A
Contributions in relation to the
contractually required contribution 2,752,176 2,375,793 2,067,865 2,743,908 1,490,022 N/A N/A N/A N/A N/A
Contribution deficiency (excess)‐$ ‐$ ‐$ ‐$ ‐$ N/A N/A N/A N/A N/A
Covered payroll 36,791,404$ 34,783,770$ 33,263,999$ 47,552,982$ 29,821,815$ N/A N/A N/A N/A N/A
Contributions as a percentage of covered
payroll 7.48% 6.83% 6.22% 5.77% 5.00% N/A N/A N/A N/A N/A
PSERS Plan 2 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Contractually Required Contribution 15,723$ 14,929$ 14,489$ 18,418$ 7,845$ N/A N/A N/A N/A N/A
Contributions in relation to the
contractually required contribution 15,723 14,929 14,489 18,418 7,845 N/A N/A N/A N/A N/A
Contribution deficiency (excess)‐$ ‐$ ‐$ ‐$ ‐$ N/A N/A N/A N/A N/A
Covered payroll 229,922$ 224,038$ 219,869$ 282,407$ 122,185$ N/A N/A N/A N/A N/A
Contributions as a percentage of covered
payroll 6.84% 6.66% 6.59% 6.52% 6.42% N/A N/A N/A N/A N/A
LEOFF Plan 2 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
0
Contractually Required Contribution 801,240$ 715,573$ 1,049,917$ 2,160,553$ 1,368,037$ N/A N/A N/A N/A N/A
Contributions in relation to the
contractually required contribution 801,240 715,573 1,049,917 2,160,553 1,368,037 N/A N/A N/A N/A N/A
Contribution deficiency (excess)‐$ ‐$ ‐$ ‐$ ‐$ N/A N/A N/A N/A N/A
Covered payroll 14,805,412$ 13,896,060$ 20,790,373$ 42,778,479$ 27,089,783$ N/A N/A N/A N/A N/A
Contributions as a percentage of covered
payroll 5.41% 5.15% 5.05% 5.05% 5.05% N/A N/A N/A N/A N/A
0
Note: Prior years' information is unavailable
2018 Comprehensive Annual Financial Report City of Renton, Washington
Required Supplementary Information, 5-9
City of RentonSchedule of Changes in Net Pension Liability and Related RatiosFirefighters' Pension FundLast 10 Fiscal Years$ Thousands2018 2017 2016 2015 2014 2013 2012 2011 2010 2009Total Pension LiabilityService Cost‐$ ‐$ ‐$ ‐$ ‐$ N/A N/A N/A N/A N/AInterest on Total Pension Liability94 103 106 109 112 N/A N/A N/A N/A N/AEffect of Plan Changes‐ ‐ ‐ ‐ ‐ N/A N/A N/A N/A N/AEffect of Economic/Demographic Gains or (Losses)‐ ‐ (29) ‐ ‐ N/A N/A N/A N/A N/AEffect of Assumption Changes or Inputs(94) 52 (125) ‐ ‐ N/A N/A N/A N/A N/ABenefit payments(193) (240) (208) (205) (204) N/A N/A N/A N/A N/ANet Change in Total Pension Liability(192) (84) (256) (96) (92) N/A N/A N/A N/A N/ATotal Pension Liability ‐ Beginning2,784 2,868 3,125 3,221 3,313 N/A N/A N/A N/A N/ATotal Pension Liability ‐ Ending (a)2,592$ 2,784$ 2,868$ 3,125$ 3,221$ N/AN/A N/A N/A N/APlan Fiduciary Net PositionEmployer Contributions‐$ ‐$ ‐$ ‐$ ‐$ N/A N/A N/A N/A N/AContributions from State Fire Insurance Premium Tax154 151 148 146 143 N/A N/A N/A N/A N/AInvestment Income Net of Investment Expenses121 114 136 134 394 N/A N/A N/A N/A N/ABenefit payments(193) (240) (208) (205) (204) N/A N/A N/A N/A N/AMedical Payments from Fund‐ ‐ ‐ ‐ ‐ N/A N/A N/A N/A N/AAdministrative Expense‐ (12) ‐ (12) (1) N/A N/A N/A N/A N/ANet Change in plan fiduciary net position83 13 76 63 332 N/A N/A N/A N/A N/APlan fiduciary net position ‐ beginning9,619 9,607 9,531 9,468 9,136 N/A N/A N/A N/A N/APlan fiduciary net position ‐ ending (b)9,703 9,619 9,607 9,531 9,468 N/A N/A N/A N/A N/ANet pension liability ‐ ending =(a)‐(b)(7,111)$ (6,835)$ (6,739)$ (6,406)$ (6,247)$ N/A N/A N/A N/A N/AFiduciary net position as a percentage of the total pension liability374.34% 345.51% 334.97% 304.99% 293.95% N/A N/A N/A N/A N/ACovered Payroll‐$ ‐$ ‐$ ‐$ ‐$ N/A N/A N/A N/A N/ANet pension liability as a percentage of covered payrollN/A N/A N/A N/A N/A N/A N/A N/A N/A N/ANotes to schedule:Prior years' information is unavailable.2018 Comprehensive Annual Financial Report City of Renton, Washington
Required Supplementary Information, 5-10
Schedule of Employer ContributionsFirefighters' Pension FundLast 10 Fiscal Years2018 2017 2016 2015 20142013 2012 2011 2010 2009Actuarially determined contribution‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Contributions in relation to the actuarially determined contribution154,275 150,951 148,034 146,358 142,706 124,391 118,775 102,354 107,068 70,327 Contribution deficiency (excess)(154,275)$ (150,951)$ (148,034)$ (146,358)$ (142,706)$ (124,391)$ (118,775)$ (102,354)$ (107,068)$ (70,327)$ Covered ‐ employee payroll‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Contribution as a percentage of covered ‐ employee payrollN/AN/AN/AN/AN/AN/AN/AN/AN/AN/ANote:Contributions are a portion of State Fire Insurance Premium Taxes.2018 Comprehensive Annual Financial Report City of Renton, Washington
Required Supplementary Information, 5-11
City of Renton
Schedule of Investment Returns
Firefighters' Pension Fund
December 31, 2018
Last 10 Fiscal Years
Fiscal Year
Ending
December 31
Net
Money‐Weighted Rate of
Return
2009 N/A
2010 N/A
2011 N/A
2012 N/A
2013 N/A
2014 4.31%
2015 1.42%
2016 1.43%
2017 1.19%
2018 1.26%
2018 Comprehensive Annual Financial Report City of Renton, Washington
Required Supplementary Information, 5-12
City of RentonSchedule of Changes in Total OPEB Liability and Related RatiosLEOFF 1 Retiree Medical BenefitsLast 10 Fiscal Years$ Thousands2018 2017 2016 2015 2014 2013 2012 2011 2010 2009Total OPEB LiabilityService Cost‐$ N/A N/A N/A N/A N/A N/A N/A N/A N/AInterest on Total OPEB Liability1,576 N/A N/A N/A N/A N/A N/A N/A N/A N/AChanges of benefit terms‐ N/A N/A N/A N/A N/A N/A N/A N/A N/AEffect of Economic/Demographic Gains or (Losses)‐ N/A N/A N/A N/A N/A N/A N/A N/A N/AEffect of Assumption Changes or Inputs(2,764) N/A N/A N/A N/A N/A N/AN/AN/A N/AExpected benefit payments(1,586) N/A N/A N/A N/A N/A N/A N/A N/A N/ANet Change in Total OPEB Liability(2,774) N/A N/A N/A N/A N/A N/A N/A N/A N/ATotal OPEB Liability ‐ Beginning45,803 N/A N/A N/A N/A N/A N/A N/A N/A N/ATotal OPEB Liability ‐ Ending (a)43,029$ N/A N/A N/A N/A N/A N/A N/A N/A N/ACovered Payroll‐$ N/A N/A N/A N/A N/A N/A N/A N/A N/ATotal OPEB liability as a percentage of covered payrollN/A N/A N/A N/A N/A N/A N/A N/A N/A N/ANotes to schedule:This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not rquired, and if prior years are not reported inaccordance with the current GASB standards, they should not be reported.2018 Comprehensive Annual Financial Report City of Renton, Washington
Required Supplementary Information, 5-13
Non‐Major Governmental Funds
Special Revenue Funds
ARTERIAL STREET FUND
The Arterial Street Fund was established pursuant to state law allocating the one‐half cent State
Gasoline Tax revenue to cities and towns for construction, improvements, and major repair of
streets.
HOTEL/MOTEL TAX 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.
1% FOR ART FUND
The City of Renton established this fund to account for one percent of construction project actual
costs to be used for the selection, acquisition and/or installation of works of art to be placed in,
on, or about City public facilities.
CABLE COMMUNICATIONS DEVELOPMENT FUND
The Cable Communications Development Fund accounts for funding for promotion and
development of cable communications as established by City ordinance.
SPRINGBROOK WETLANDS BANK FUND
The City of Renton established this fund in 2007 for the purpose of providing accounting for the
Springbrook Creek Wetland and Habitat Mitigation Bank project. The fund will receive revenue
by selling Wetlands Credits to third parties and to the City’s internal departments.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-1
Debt Service Funds
GENERAL GOVERNMENTAL MISCELLANEOUS DEBT SERVICE FUND
This debt service fund accounts for the following outstanding debt issues:
2009 intergovernmental debt related to the Fire District #40 asset transfer as a result of
the Benson Hill annexation.
2009 (A & B) intergovernmental debt related to acquisition, construction, and equipping
of the SCORE facility. Pursuant to an interlocal agreement, the City is obligated to pay 36
percent of the debt service on the SCORE bonds.
2010 Limited Tax General Obligation refunding bonds which refunded a portion of the
2001 limited tax general obligation bonds for the construction of a downtown parking
facility.
2011 Limited Tax General Obligation bonds which funded the development and
construction of two new libraries.
2013 Limited Tax General Obligation qualified energy conservation bonds (QECB) which
provided funding for streetlight improvements.
2015 (A & B) Limited Tax General Obligation refunding bonds refunded a portion of the
2006 limited tax general obligation bonds for the construction of South Lake Washington
infrastructure improvements.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-2
Capital Project Funds
COMMUNITY DEVELOPMENT IMPACT MITIGATION FUND
Accounts for monies collected from developers to offset impacts created by their developments
to City facilities.
TRANSPORTATION IMPACT MITIGATION FUND
Accounts for monies collected from developers to offset impacts created by their developments
to City facilities.
CAPITAL IMPROVEMENT FUND
The Capital Improvement Fund support the City of Renton transportation projects and projects
linked with various State and Federal funding programs. Many of the projects are dependent on
grants, formulation of LID’s, and mitigation revenue.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-3
Non‐Major Proprietary Funds
Enterprise Funds
AIRPORT FUND
The Airport Fund accounts for revenues and expenses for administration, debt services,
operation, capital improvements, and maintenance of the Renton Municipal Airport and Will
Rodger‐Wily Post Memorial Seaplane Base. Sources of support to the fund are leases, fuel
charges, investment interest, and grant funding as available.
GOLF COURSE FUND
The Golf Course Fund was created after the City acquired the Maplewood Golf Course. The fund
accounts for the operation, maintenance, debt service, and capital improvements of the facility.
Internal Service Funds
EQUIPMENT RENTAL FUND
The Equipment Rental Fund accounts for the costs of maintaining and replacing all City vehicles
and auxiliary equipment. In addition, this fund accounts for the City’s information technology,
facilities and communications costs. All costs, including depreciation, are factors in calculating
the rates that are charged to each user department.
INSURANCE FUND
The Insurance Fund provides accounting for self‐insurance services to all City departments,
including provisions for losses on property, liability, worker’s compensation, unemployment
compensation, and the health care program. Expenses are paid from the Insurance Fund and
rates are charged to departments based on use and/or coverage requirements.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-4
Capital Projects Funds Debt Service Funds Special Revenue Funds
Total Nonmajor
Governmental Funds
ASSETS
Cash & cash equivalents $ 9,835,446 $ 1,906,916 $ 1,558,507 $ 13,300,869
Investments at fair value 1,980,751 384,032 313,867 2,678,650
Receivables, net of allowances:
Customer accounts 233,263 ‐ 4,000 237,263
Accrued interest & penalties 37,717 15,225 6,868 59,810
Notes and assessments receivable 2,408 ‐ ‐ 2,408
Due from other funds ‐ 481,758 ‐ 481,758
Due from other governments 1,070,981 593,048 162,706 1,826,735
TOTAL ASSETS $ 13,160,566 $ 3,380,979 $ 2,045,948 $ 18,587,493
LIABILITIES
Accounts payable $ 1,293,905 $ ‐ $ 4,500 $ 1,298,405
Accrued wages and benefits payable ‐ ‐ 1,407 1,407
Retainage payable 17,084 ‐ ‐ 17,084
Due to other funds ‐ ‐ 5,000 5,000
Unearned revenues ‐ 593,048 ‐ 593,048
TOTAL LIABILITIES 1,310,989 593,048 10,907 1,914,944
DEFERRED INFLOWS OF RESOURCES
Deferred amounts on special assessments 2,480 ‐ ‐ 2,480
Unavailable revenues ‐ ‐ 4,000 4,000
TOTAL DEFERRED INFLOW OF RESOURCES 2,480 ‐ 4,000 6,480
FUND BALANCES
Restricted 6,967,524 ‐ 1,911,648 8,879,172
Committed 4,495,143 ‐ 119,393 4,614,536
Assigned 384,430 2,787,931 ‐ 3,172,361
TOTAL FUND BALANCES 11,847,097 2,787,931 2,031,041 16,666,069
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
FUND BALANCES $ 13,160,566 $ 3,380,979 $ 2,045,948 $ 18,587,493
City of Renton
Combining Governmental Balance Sheet
Nonmajor Governmental Funds
Summary by Fund Type
December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-5
Community
Development Impact
Mitigation
Transportation Impact
Mitigation Capital Improvement
Total Nonmajor
Capital Projects Funds
ASSETS
Cash & cash equivalents $ 2,138,414 $ 2,766,283 $ 4,930,749 $ 9,835,446
Investments at fair value 430,653 557,099 992,999 1,980,751
Receivables, net of allowances:
Customer accounts ‐ ‐ 233,263 233,263
Accrued interest & penalties 8,069 7,767 21,881 37,717
Notes and assessments receivable ‐ 2,408 ‐ 2,408
Due from other governments ‐ ‐ 1,070,981 1,070,981
TOTAL ASSETS $ 2,577,136 $ 3,333,557 $ 7,249,873 $ 13,160,566
LIABILITIES
Accounts payable $ ‐ $ ‐ $ 1,293,905 $ 1,293,905
Retainage payable ‐ ‐ 17,084 17,084
TOTAL LIABILITIES ‐ ‐ 1,310,989 1,310,989
DEFERRED INFLOWS OF RESOURCES
Deferred amount of special assessments ‐ 2,480 ‐ 2,480
TOTAL DEFERRED INFLOWS OF RESOURCES ‐ 2,480 ‐ 2,480
FUND BALANCES
Restricted 2,577,136 3,331,077 1,059,311 6,967,524
Committed ‐ ‐ 4,495,143 4,495,143
Assigned ‐ ‐ 384,430 384,430
TOTAL FUND BALANCES 2,577,136 3,331,077 5,938,884 11,847,097
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
FUND BALANCES $ 2,577,136 $ 3,333,557 $ 7,249,873 $ 13,160,566
City of Renton
Combining Balance Sheet
Nonmajor Capital Projects Funds
December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-6
General Debt
Total Nonmajor Debt
Service Funds
ASSETS
Cash & cash equivalents $ 1,906,916 $ 1,906,916
Investments at fair value 384,032 384,032
Receivables, net of allowances:
Accrued interest & penalties 15,225 15,225
Due from other funds 481,758 481,758
Due from other governments 593,048 593,048
TOTAL ASSETS $ 3,380,979 $ 3,380,979
LIABILITIES
Unearned revenues $ 593,048 $ 593,048
TOTAL LIABILITIES 593,048 593,048
DEFERRED INFLOWS OF RESOURCES
TOTAL DEFERRED INFLOWS OF RESOURCES ‐ ‐
FUND BALANCES
Assigned 2,787,931 2,787,931
TOTAL FUND BALANCES 2,787,931 2,787,931
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
FUND BALANCES $ 3,380,979 $ 3,380,979
City of Renton
Combining Balance Sheet
Nonmajor Debt Service Funds
December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-7
Arterial Street Hotel/Motel Tax 1% For ArtCable Communications DevelopmentSpringbrook Wetlands BankTotal Nonmajor Special Revenue FundsASSETSCash & cash equivalents $ 135,041 $ 599,532 $ 98,996 $ 442,439 $ 282,499 $ 1,558,507 Investments at fair value 27,196 120,739 19,937 89,103 56,892 313,867 Receivables, net of allowances:Customer accounts ‐ 4,000 ‐ ‐ ‐ 4,000 Accrued interest & penalties 1,363 1,804 460 1,885 1,356 6,868 Due from other governments 103,436 59,270 ‐ ‐ ‐ 162,706 TOTAL ASSETS $ 267,036 $ 785,345 $ 119,393 $ 533,427 $ 340,747 $ 2,045,948 LIABILITIESAccounts payable $ ‐ $ ‐ $ ‐ $ 4,500 $ ‐ $ 4,500 Wages and benefits payable ‐ ‐ ‐ 1,407 ‐ 1,407 Due to other funds ‐ 5,000 ‐ ‐ ‐ 5,000 TOTAL LIABILITIES ‐ 5,000 ‐ 5,907 ‐ 10,907 DEFERRED INFLOWS OF RESOURCESUnavailable revenues ‐ 4,000 ‐ ‐ ‐ 4,000 TOTAL DEFERRED INFLOWS OF RESOURCES ‐ 4,000 ‐ ‐ ‐ 4,000 FUND BALANCESRestricted 267,036 776,345 ‐ 527,520 340,747 1,911,648 Committed ‐ ‐ 119,393 ‐ ‐ 119,393 TOTAL FUND BALANCES 267,036 776,345 119,393 527,520 340,747 2,031,041 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 267,036 $ 785,345 $ 119,393 $ 533,427 $ 340,747 $ 2,045,948 City of RentonCombining Balance SheetNonmajor Special Revenue Funds December 31, 20182018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-8
Capital Projects Funds Debt Service Funds Special Revenue Funds
Total Nonmajor
Governmental Funds
REVENUES
Taxes $ 1,379,314 $ 5,501,350 $ 559,014 $ 7,439,678
Licenses and permits 356,629 ‐ 61,828 418,457
Intergovernmental revenues 2,581,847 570,069 713,276 3,865,192
Charges for services 3,631,987 ‐ ‐ 3,631,987
Fines and forfeits 38,056 ‐ ‐ 38,056
Contributions ‐ ‐ 26,000 26,000
Investment earnings 134,989 52,763 25,732 213,484
TOTAL REVENUES 8,122,822 6,124,182 1,385,850 15,632,854
EXPENDITURES
Current:
Transportation 2,860,293 ‐ ‐ 2,860,293
Economic environment ‐ ‐ 291,645 291,645
Culture and recreation ‐ ‐ 53,317 53,317
Capital outlay:
Transportation 3,813,721 ‐ ‐ 3,813,721
Debt service:
Principal payment ‐ 4,480,075 ‐ 4,480,075
Interest and fiscal charges ‐ 1,216,109 ‐ 1,216,109
TOTAL EXPENDITURES 6,674,014 5,696,184 344,962 12,715,160
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 1,448,808 427,998 1,040,888 2,917,694
OTHER FINANCING SOURCES (USES)
Transfer in 1,425,000 ‐ 15,000 1,440,000
Transfer out (520,000) ‐ (670,000) (1,190,000)
TOTAL OTHER FINANCING SOURCES (USES) 905,000 ‐ (655,000) 250,000
NET CHANGE IN FUND BALANCE 2,353,808 427,998 385,888 3,167,694
FUND BALANCE ‐ JANUARY 1 9,493,289 2,359,933 1,645,153 13,498,375
FUND BALANCE ‐ DECEMBER 31 $ 11,847,097 $ 2,787,931 $ 2,031,041 $ 16,666,069
City of Renton
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Summary by Fund Type
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-9
Community
Development Impact
Mitigation
Transportation Impact
Mitigation Capital Improvement
Total Nonmajor
Capital Projects Funds
REVENUES
Taxes $ ‐ $ ‐ $ 1,379,314 $ 1,379,314
Licenses and permits ‐ ‐ 356,629 356,629
Intergovernmental revenues ‐ ‐ 2,581,847 2,581,847
Charges for services 640,651 2,991,336 ‐ 3,631,987
Fines and forfeits ‐ ‐ 38,056 38,056
Investment earnings 28,215 34,237 72,537 134,989
TOTAL REVENUES 668,866 3,025,573 4,428,383 8,122,822
EXPENDITURES
Current:
Transportation ‐ ‐ 2,860,293 2,860,293
Capital outlay:
Transportation ‐ ‐ 3,813,721 3,813,721
TOTAL EXPENDITURES ‐ ‐ 6,674,014 6,674,014
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 668,866 3,025,573 (2,245,631) 1,448,808
OTHER FINANCING SOURCES (USES)
Transfer in ‐ ‐ 1,425,000 1,425,000
Transfer out ‐ (505,000) (15,000) (520,000)
TOTAL OTHER FINANCING SOURCES (USES) ‐ (505,000) 1,410,000 905,000
NET CHANGE IN FUND BALANCE 668,866 2,520,573 (835,631) 2,353,808
FUND BALANCE ‐ JANUARY 1 1,908,270 810,504 6,774,515 9,493,289
FUND BALANCE ‐ DECEMBER 31 $ 2,577,136 $ 3,331,077 $ 5,938,884 $ 11,847,097
City of Renton
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Capital Projects Funds
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-10
General Debt
Total Nonmajor Debt
Service Funds
REVENUES
Taxes $ 5,501,350 $ 5,501,350
Intergovernmental revenues 570,069 570,069
Investment earnings 52,763 52,763
TOTAL REVENUES 6,124,182 6,124,182
EXPENDITURES
Debt service:
Principal payment 4,480,075 4,480,075
Interest and fiscal charges 1,216,109 1,216,109
TOTAL EXPENDITURES 5,696,184 5,696,184
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 427,998 427,998
OTHER FINANCING SOURCES (USES)
TOTAL OTHER FINANCING SOURCES (USES) ‐ ‐
NET CHANGE IN FUND BALANCE 427,998 427,998
FUND BALANCE ‐ JANUARY 1 2,359,933 2,359,933
FUND BALANCE ‐ DECEMBER 31 $ 2,787,931 $ 2,787,931
City of Renton
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Debt Service Funds
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-11
Arterial Street Hotel/Motel Tax 1% For ArtCable Communications DevelopmentSpringbrook Wetlands BankTotal Nonmajor Special Revenue FundsREVENUESTaxes $ ‐ $ 519,014 $ ‐ $ 40,000 $ ‐ $ 559,014 Licenses and permits ‐ ‐ ‐ 61,828 ‐ 61,828 Intergovernmental revenues 713,276 ‐ ‐ ‐ ‐ 713,276 Contributions ‐ 26,000 ‐ ‐ ‐ 26,000 Investment earnings 5,727 7,464 1,343 6,788 4,410 25,732 TOTAL REVENUES 719,003 552,478 1,343 108,616 4,410 1,385,850 EXPENDITURESCurrent:Economic environment ‐ 291,645 ‐ ‐ ‐ 291,645 Culture and recreation ‐ ‐ ‐ 53,317 ‐ 53,317 TOTAL EXPENDITURES ‐ 291,645 ‐ 53,317 ‐ 344,962 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 719,003 260,833 1,343 55,299 4,410 1,040,888 OTHER FINANCING SOURCES (USES)Transfer in ‐ ‐ 15,000 ‐ ‐ 15,000 Transfer out (670,000) ‐ ‐ ‐ ‐ (670,000)TOTAL OTHER FINANCING SOURCES (USES) (670,000) ‐ 15,000 ‐ ‐ (655,000)NET CHANGE IN FUND BALANCE 49,003 260,833 16,343 55,299 4,410 385,888 FUND BALANCE ‐ JANUARY 1 218,033 515,512 103,050 472,221 336,337 1,645,153 FUND BALANCE ‐ DECEMBER 31 $ 267,036 $ 776,345 $ 119,393 $ 527,520 $ 340,747 $ 2,031,041 City of RentonCombining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Special Revenue FundsFor the Year Ended December 31, 20182018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-12
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 9,748,493 $ 10,571,292 $ 10,633,312 $ 62,020
Licenses and permits 1,000 1,000 1,350 350
Intergovernmental revenues ‐ 268,258 42,446 (225,812)
Charges for services 1,803,323 1,758,323 1,503,791 (254,532)
Contributions 30,000 116,090 264,151 148,061
Interfund revenues 506,486 506,486 242,430 (264,056)
Interest revenue ‐ ‐ 71,663 71,663
Miscellaneous revenue 513,695 563,695 638,247 74,552
Total revenues 12,602,997 13,785,144 13,397,390 (387,754)
EXPENDITURES
Current:
Health and human services 742,310 841,868 746,145 95,723
Culture and recreation 12,683,485 13,027,247 12,027,978 999,269
Total current 13,425,795 13,869,115 12,774,123 1,094,992
Total expenditures 13,425,795 13,869,115 12,774,123 1,094,992
Excess (deficiency) of revenues over expenditures (822,798) (83,971) 623,267 707,238
OTHER FINANCING SOURCES (USES)
Transfers out ‐ (9,584) (12,440) (2,856)
Total other financing sources (uses) ‐ (9,584) (12,440) (2,856)
Net change in fund balances (822,798) (93,555) 610,827 704,382
FUND BALANCE ‐ JANUARY 1 4,840,993 4,840,993 4,840,993 ‐
FUND BALANCE ‐ DECEMBER 31 $ 4,018,195 $ 4,747,438 $ 5,451,820 $ 704,382
Budgeted Amounts
City of Renton
General ‐ Community Services
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-13
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 7,602,116 $ 7,980,104 $ 7,965,240 $ (14,864)
Licenses and permits 125,000 ‐ ‐ ‐
Intergovernmental revenues 1,504,980 1,504,980 1,547,052 42,072
Charges for services 190,432 190,432 174,921 (15,511)
Interfund revenues 967,724 967,724 861,348 (106,376)
Interest revenue 520,000 520,000 561,929 41,929
Miscellaneous revenue ‐ ‐ 3,148 3,148
Total revenues 10,910,252 11,163,240 11,113,638 (49,602)
EXPENDITURES
Current:
Transportation 11,283,040 11,412,031 10,948,741 463,290
Total current 11,283,040 11,412,031 10,948,741 463,290
Capital outlay:
Transportation 5,200 5,200 9,900 (4,700)
Total capital outlay 5,200 5,200 9,900 (4,700)
Total expenditures 11,288,240 11,417,231 10,958,641 458,590
Excess (deficiency) of revenues over expenditures (377,988) (253,991) 154,997 408,988
OTHER FINANCING SOURCES (USES)
Transfers out ‐ (356,000) (276,000) 80,000
Sale of capital assets ‐ ‐ 13,000 13,000
Insurance Recoveries ‐ ‐ 19,597 19,597
Total other financing sources (uses) ‐ (356,000) (243,403) 112,597
Net change in fund balances (377,988) (609,991) (88,406) 521,585
FUND BALANCE ‐ JANUARY 1 3,143,904 3,143,904 3,143,904 ‐
FUND BALANCE ‐ DECEMBER 31 $ 2,765,916 $ 2,533,913 $ 3,055,498 $ 521,585
Budgeted Amounts
City of Renton
General ‐ Streets
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-14
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues $ 424,857 $ 913,366 $ 243,037 $ (670,329)
Total revenues 424,857 913,366 243,037 (670,329)
EXPENDITURES
Current:
Economic environment 361,724 728,578 83,173 645,405
Health and human services 63,133 224,789 199,864 24,925
Total current 424,857 953,367 283,037 670,330
Total expenditures 424,857 953,367 283,037 670,330
Excess (deficiency) of revenues over expenditures ‐ (40,001) (40,000) 1
OTHER FINANCING SOURCES (USES)
Total other financing sources (uses) ‐ ‐ ‐ ‐
Net change in fund balances ‐ (40,001) (40,000) 1
FUND BALANCE ‐ JANUARY 1 54,286 54,286 54,286 ‐
FUND BALANCE ‐ DECEMBER 31 $ 54,286 $ 14,285 $ 14,286 $ 1
Budgeted Amounts
City of Renton
General ‐ Community Development Block Grant
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-15
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 239,129 $ 239,129 $ 239,129 $ ‐
Interest revenue ‐ ‐ 701 701
Total revenues 239,129 239,129 239,830 701
EXPENDITURES
Current:
Culture and recreation 241,550 241,246 245,521 (4,275)
Total current 241,550 241,246 245,521 (4,275)
Total expenditures 241,550 241,246 245,521 (4,275)
Excess (deficiency) of revenues over expenditures (2,421) (2,117) (5,691) (3,574)
OTHER FINANCING SOURCES (USES)
Total other financing sources (uses) ‐ ‐ ‐ ‐
Net change in fund balances (2,421) (2,117) (5,691) (3,574)
FUND BALANCE ‐ JANUARY 1 70,992 70,992 70,992 ‐
FUND BALANCE ‐ DECEMBER 31 $ 68,571 $ 68,875 $ 65,301 $ (3,574)
Budgeted Amounts
City of Renton
General ‐ Museum
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-16
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues $ ‐ $ 31,608 $ 36,278 $ 4,670
Charges for services 2,600 2,600 2,230 (370)
Contributions 20,000 20,000 14,307 (5,693)
Interest revenue 300 300 1,252 952
Miscellaneous revenue 36,500 36,500 35,672 (828)
Total revenues 59,400 91,008 89,739 (1,269)
EXPENDITURES
Current:
Culture and recreation 69,646 110,269 108,843 1,426
Total current 69,646 110,269 108,843 1,426
Total expenditures 69,646 110,269 108,843 1,426
Excess (deficiency) of revenues over expenditures (10,246) (19,261) (19,104) 157
OTHER FINANCING SOURCES (USES)
Transfers in ‐ 9,167 9,167 ‐
Total other financing sources (uses) ‐ 9,167 9,167 ‐
Net change in fund balances (10,246) (10,094) (9,937) 157
FUND BALANCE ‐ JANUARY 1 105,323 105,323 105,323 ‐
FUND BALANCE ‐ DECEMBER 31 $ 95,077 $ 95,229 $ 95,386 $ 157
Budgeted Amounts
City of Renton
General ‐ Farmer's Market
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-17
Variance with
Original Final Actual Final Budget
REVENUES
Interest revenue $ ‐ $ ‐ $ 5,935 $ 5,935
Miscellaneous revenue 902,550 967,550 1,065,234 97,684
Total revenues 902,550 967,550 1,071,169 103,619
EXPENDITURES
Current:
General government 670,755 808,406 835,760 (27,354)
Total current 670,755 808,406 835,760 (27,354)
Debt service:
Principal payment 175,000 175,000 175,000 ‐
Total debt service 175,000 175,000 175,000 ‐
Total expenditures 845,755 983,406 1,010,760 (27,354)
Excess (deficiency) of revenues over expenditures 56,795 (15,856) 60,409 76,265
OTHER FINANCING SOURCES (USES)
Total other financing sources (uses) ‐ ‐ ‐ ‐
Net change in fund balances 56,795 (15,856) 60,409 76,265
FUND BALANCE ‐ JANUARY 1 611,055 611,055 611,055 ‐
FUND BALANCE ‐ DECEMBER 31 $ 667,850 $ 595,199 $ 671,464 $ 76,265
Budgeted Amounts
City of Renton
General ‐ Leased City Properties
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-18
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 4,420,000 $ 4,420,000 $ 3,845,759 $ (574,241)
Intergovernmental revenues 207,000 5,479,407 932,700 (4,546,707)
Charges for services ‐ ‐ 62,619 62,619
Contributions ‐ 11,000 ‐ (11,000)
Interest revenue ‐ 171,721 300,109 128,388
Miscellaneous revenue ‐ 1,000 ‐ (1,000)
Total revenues 4,627,000 10,083,128 5,141,187 (4,941,941)
EXPENDITURES
Current:
General government ‐ 10,000 277,733 (267,733)
Public safety ‐ 1,000,000 7,318 992,682
Economic environment ‐ 72,889 8,789 64,100
Culture and recreation 1,114,237 1,825,793 655,307 1,170,486
Total current 1,114,237 2,908,682 949,147 1,959,535
Capital outlay:
General government 351,000 3,928,184 313,952 3,614,232
Public safety 4,952,000 5,191,089 4,445,821 745,268
Transportation ‐ 1,394,318 100,289 1,294,029
Culture and recreation 3,162,000 13,661,028 2,394,413 11,266,615
Total capital outlay 8,465,000 24,174,619 7,254,475 16,920,144
Total expenditures 9,579,237 27,083,301 8,203,622 18,879,679
Excess (deficiency) of revenues over expenditures (4,952,237) (17,000,173) (3,062,435) 13,937,738
OTHER FINANCING SOURCES (USES)
Transfer in ‐ 1,080,000 1,000,000 (80,000)
Sale of capital assets ‐ 85,000 1,649,460 1,564,460
Total other financing sources (uses) ‐ 1,165,000 2,649,460 1,484,460
Net change in fund balances (4,952,237) (15,835,173) (412,975) 15,422,198
FUND BALANCE ‐ JANUARY 1 22,421,999 22,421,999 22,421,999 ‐
FUND BALANCE ‐ DECEMBER 31 $ 17,469,762 $ 6,586,826 $ 22,009,024 $ 15,422,198
Budgeted Amounts
City of Renton
Municipal Facilities CIP
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-19
Variance with
Original Final Actual Final Budget
REVENUES
Interest revenue $ ‐ $ ‐ $ 33,558 $ 33,558
Total revenues ‐ ‐ 33,558 33,558
EXPENDITURES
Current:
Economic environment ‐ 25,000 ‐ 25,000
Total current ‐ 25,000 ‐ 25,000
Total expenditures ‐ 25,000 ‐ 25,000
Excess (deficiency) of revenues over expenditures ‐ (25,000) 33,558 58,558
OTHER FINANCING SOURCES (USES)
Total other financing sources (uses) ‐ ‐ ‐ ‐
Net change in fund balances ‐ (25,000) 33,558 58,558
FUND BALANCE ‐ JANUARY 1 2,547,525 2,547,525 2,547,525 ‐
FUND BALANCE ‐ DECEMBER 31 $ 2,547,525 $ 2,522,525 $ 2,581,083 $ 58,558
Budgeted Amounts
City of Renton
Municipal Facilities CIP ‐ Housing Opportunity and Economic Development Revolving Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-20
Variance with
Original Final Actual Final Budget
REVENUES
Interest revenue $ ‐ $ ‐ $ 5,566 $ 5,566
Total revenues ‐ ‐ 5,566 5,566
EXPENDITURES
Current:
Culture and recreation ‐ ‐ 12 (12)
Total current ‐ ‐ 12 (12)
Total expenditures ‐ ‐ 12 (12)
Excess (deficiency) of revenues over expenditures ‐ ‐ 5,554 5,554
OTHER FINANCING SOURCES (USES)
Total other financing sources (uses) ‐ ‐ ‐ ‐
Net change in fund balances ‐ ‐ 5,554 5,554
FUND BALANCE ‐ JANUARY 1 450,840 450,840 450,840 ‐
FUND BALANCE ‐ DECEMBER 31 $ 450,840 $ 450,840 $ 456,394 $ 5,554
Budgeted Amounts
City of Renton
Municipal Facilities CIP ‐ New Library Development
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-21
Variance with
Original Final Actual Final Budget
REVENUES
Contributions $ ‐ $ ‐ $ 267,878 $ 267,878
Interest revenue ‐ ‐ 56,221 56,221
Total revenues ‐ ‐ 324,099 324,099
EXPENDITURES
Current:
Culture and recreation ‐ 95,000 ‐ 95,000
Total current ‐ 95,000 ‐ 95,000
Capital outlay:
Culture and recreation ‐ 236,000 250,143 (14,143)
Total capital outlay ‐ 236,000 250,143 (14,143)
Total expenditures ‐ 331,000 250,143 80,857
Excess (deficiency) of revenues over expenditures ‐ (331,000) 73,956 404,956
OTHER FINANCING SOURCES (USES)
Total other financing sources (uses) ‐ ‐ ‐ ‐
Net change in fund balances ‐ (331,000) 73,956 404,956
FUND BALANCE ‐ JANUARY 1 4,155,519 4,155,519 4,155,519 ‐
FUND BALANCE ‐ DECEMBER 31 $ 4,155,519 $ 3,824,519 $ 4,229,475 $ 404,956
Budgeted Amounts
City of Renton
Municipal Facilities CIP ‐ Family First Center
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-22
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 1,379,314 $ 1,379,314 $ 1,379,314 $ ‐
Licenses and permits 623,186 623,186 356,629 (266,557)
Intergovernmental revenues 1,288,000 13,179,923 2,581,847 (10,598,076)
Fines and forfeits ‐ ‐ 38,056 38,056
Contributions ‐ 200,000 ‐ (200,000)
Interest revenue ‐ ‐ 72,537 72,537
Total revenues 3,290,500 15,382,423 4,428,383 (10,954,040)
EXPENDITURES
Current:
Transportation ‐ 100,000 2,860,293 (2,760,293)
Total current ‐ 100,000 2,860,293 (2,760,293)
Capital outlay:
Transportation 3,950,500 21,512,131 3,813,721 17,698,410
Total capital outlay 3,950,500 21,512,131 3,813,721 17,698,410
Total expenditures 3,950,500 21,612,131 6,674,014 14,938,117
Excess (deficiency) of revenues over expenditures (660,000) (6,229,708) (2,245,631) 3,984,077
OTHER FINANCING SOURCES (USES)
Transfer in 675,000 1,425,000 1,425,000 ‐
Transfers out (15,000) (15,000) (15,000) ‐
Total other financing sources (uses) 660,000 1,410,000 1,410,000 ‐
Net change in fund balances ‐ (4,819,708) (835,631) 3,984,077
FUND BALANCE ‐ JANUARY 1 6,774,515 6,774,515 6,774,515 ‐
FUND BALANCE ‐ DECEMBER 31 $ 6,774,515 $ 1,954,807 $ 5,938,884 $ 3,984,077
Budgeted Amounts
City of Renton
Capital Improvement
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-23
Variance with
Original Final Actual Final Budget
REVENUES
Charges for services $ 86,500 $ 86,500 $ 640,651 $ 554,151
Interest revenue ‐ ‐ 28,215 28,215
Total revenues 86,500 86,500 668,866 582,366
EXPENDITURES
Total expenditures ‐ ‐ ‐ ‐
Excess (deficiency) of revenues over expenditures 86,500 86,500 668,866 582,366
OTHER FINANCING SOURCES (USES)
Total other financing sources (uses) ‐ ‐ ‐ ‐
Net change in fund balances 86,500 86,500 668,866 582,366
FUND BALANCE ‐ JANUARY 1 1,908,270 1,908,270 1,908,270 ‐
FUND BALANCE ‐ DECEMBER 31 $ 1,994,770 $ 1,994,770 $ 2,577,136 $ 582,366
Budgeted Amounts
City of Renton
Community Development Impact Mitigation
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-24
Variance with
Original Final Actual Final Budget
REVENUES
Charges for services $ 632,400 $ 632,400 $ 2,991,336 $ 2,358,936
Interest revenue ‐ ‐ 34,237 34,237
Total revenues 632,400 632,400 3,025,573 2,393,173
EXPENDITURES
Total expenditures ‐ ‐ ‐ ‐
Excess (deficiency) of revenues over expenditures 632,400 632,400 3,025,573 2,393,173
OTHER FINANCING SOURCES (USES)
Transfers out (5,000) (505,000) (505,000) ‐
Total other financing sources (uses) (5,000) (505,000) (505,000) ‐
Net change in fund balances 627,400 127,400 2,520,573 2,393,173
FUND BALANCE ‐ JANUARY 1 810,504 810,504 810,504 ‐
FUND BALANCE ‐ DECEMBER 31 $ 1,437,904 $ 937,904 $ 3,331,077 $ 2,393,173
Budgeted Amounts
City of Renton
Transportation Impact Mitigation
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-25
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 5,019,592 $ 5,019,592 $ 5,501,350 $ 481,758
Intergovernmental revenues 433,652 433,652 570,069 136,417
Interest revenue ‐ ‐ 52,763 52,763
Total revenues 5,453,244 5,453,244 6,124,182 670,938
EXPENDITURES
Debt service:
Principal payment 4,480,075 4,480,075 4,480,075 ‐
Interest and fiscal charges 1,223,169 1,223,169 1,216,109 7,060
Total debt service 5,703,244 5,703,244 5,696,184 7,060
Total expenditures 5,703,244 5,703,244 5,696,184 7,060
Excess (deficiency) of revenues over expenditures (250,000) (250,000) 427,998 677,998
OTHER FINANCING SOURCES (USES)
Transfer in 142,975 142,975 ‐ (142,975)
Total other financing sources (uses) 142,975 142,975 ‐ (142,975)
Net change in fund balances (107,025) (107,025) 427,998 535,023
FUND BALANCE ‐ JANUARY 1 2,359,934 2,359,934 2,359,933 (1)
FUND BALANCE ‐ DECEMBER 31 $ 2,252,909 $ 2,252,909 $ 2,787,931 $ 535,022
Budgeted Amounts
City of Renton
General Debt
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-26
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues $ 670,000 $ 670,000 $ 713,276 $ 43,276
Interest revenue ‐ ‐ 5,727 5,727
Total revenues 670,000 670,000 719,003 49,003
EXPENDITURES
Total expenditures ‐ ‐ ‐ ‐
Excess (deficiency) of revenues over expenditures 670,000 670,000 719,003 49,003
OTHER FINANCING SOURCES (USES)
Transfers out (670,000) (670,000) (670,000) ‐
Total other financing sources (uses) (670,000) (670,000) (670,000) ‐
Net change in fund balances ‐ ‐ 49,003 49,003
FUND BALANCE ‐ JANUARY 1 218,033 218,033 218,033 ‐
FUND BALANCE ‐ DECEMBER 31 $ 218,033 $ 218,033 $ 267,036 $ 49,003
Budgeted Amounts
City of Renton
Arterial Street
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-27
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 200,000 $ 200,000 $ 519,014 $ 319,014
Contributions 65,000 26,000 26,000 ‐
Interest revenue ‐ ‐ 7,464 7,464
Total revenues 265,000 226,000 552,478 326,478
EXPENDITURES
Current:
Economic environment 265,000 335,629 291,645 43,984
Total current 265,000 335,629 291,645 43,984
Total expenditures 265,000 335,629 291,645 43,984
Excess (deficiency) of revenues over expenditures ‐ (109,629) 260,833 370,462
OTHER FINANCING SOURCES (USES)
Total other financing sources (uses) ‐ ‐ ‐ ‐
Net change in fund balances ‐ (109,629) 260,833 370,462
FUND BALANCE ‐ JANUARY 1 515,512 515,512 515,512 ‐
FUND BALANCE ‐ DECEMBER 31 $ 515,512 $ 405,883 $ 776,345 $ 370,462
Budgeted Amounts
City of Renton
Hotel/Motel Tax
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-28
Variance with
Original Final Actual Final Budget
REVENUES
Interest revenue $ ‐ $ ‐ $ 1,343 $ 1,343
Total revenues ‐ ‐ 1,343 1,343
EXPENDITURES
Capital outlay:
Culture and recreation 15,000 53,683 ‐ 53,683
Total capital outlay 15,000 53,683 ‐ 53,683
Total expenditures 15,000 53,683 ‐ 53,683
Excess (deficiency) of revenues over expenditures (15,000) (53,683) 1,343 55,026
OTHER FINANCING SOURCES (USES)
Transfer in 15,000 15,000 15,000 ‐
Total other financing sources (uses) 15,000 15,000 15,000 ‐
Net change in fund balances ‐ (38,683) 16,343 55,026
FUND BALANCE ‐ JANUARY 1 103,050 103,050 103,050 ‐
FUND BALANCE ‐ DECEMBER 31 $ 103,050 $ 64,367 $ 119,393 $ 55,026
Budgeted Amounts
City of Renton
1% For Art
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-29
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 40,000 $ 40,000 $ 40,000 $ ‐
Licenses and permits 57,674 57,674 61,828 4,154
Interest revenue ‐ ‐ 6,788 6,788
Total revenues 97,674 97,674 108,616 10,942
EXPENDITURES
Current:
Culture and recreation 57,674 57,674 53,317 4,357
Total current 57,674 57,674 53,317 4,357
Capital outlay:
Culture and recreation 40,000 40,000 ‐ 40,000
Total capital outlay 40,000 40,000 ‐ 40,000
Total expenditures 97,674 97,674 53,317 44,357
Excess (deficiency) of revenues over expenditures ‐ ‐ 55,299 55,299
OTHER FINANCING SOURCES (USES)
Total other financing sources (uses) ‐ ‐ ‐ ‐
Net change in fund balances ‐ ‐ 55,299 55,299
FUND BALANCE ‐ JANUARY 1 472,221 472,221 472,221 ‐
FUND BALANCE ‐ DECEMBER 31 $ 472,221 $ 472,221 $ 527,520 $ 55,299
Budgeted Amounts
City of Renton
Cable Communications Development
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-30
Variance with
Original Final Actual Final Budget
REVENUES
Interest revenue $ ‐ $ ‐ $ 4,410 $ 4,410
Total revenues ‐ ‐ 4,410 4,410
EXPENDITURES
Total expenditures ‐ ‐ ‐ ‐
Excess (deficiency) of revenues over expenditures ‐ ‐ 4,410 4,410
OTHER FINANCING SOURCES (USES)
Total other financing sources (uses) ‐ ‐ ‐ ‐
Net change in fund balances ‐ ‐ 4,410 4,410
FUND BALANCE ‐ JANUARY 1 336,337 336,337 336,337 ‐
FUND BALANCE ‐ DECEMBER 31 $ 336,337 $ 336,337 $ 340,747 $ 4,410
Budgeted Amounts
City of Renton
Springbrook Wetlands Bank
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-31
Airport Golf Course
Total Nonmajor
Enterprise Funds
ASSETS
Current assets:
Cash & cash equivalents $ 4,229,085 $ 382,660 $ 4,611,745
Investments at fair value 851,651 76,661 928,312
Receivables (net of allowances):
Customer accounts 177,459 10,498 187,957
Interest & penalties 13,077 863 13,940
Due from other funds ‐ 13,033 13,033
Due from other governments 55,118 ‐ 55,118
Supplies inventory ‐ 58,996 58,996
Total current assets 5,326,390 542,711 5,869,101
Noncurrent assets:
Capital assets not being depreciated:
Land 784,080 2,683,200 3,467,280
Construction in Progress 387,125 ‐ 387,125
Capital assets being depreciated/amortized:
Capital assets (net) 18,926,092 4,275,037 23,201,129
Total noncurrent assets 20,097,297 6,958,237 27,055,534
TOTAL ASSETS 25,423,687 7,500,948 32,924,635
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 60,707 77,882 138,589
TOTAL DEFERRED OUTFLOWS OF RESOURCES 60,707 77,882 138,589
LIABILITIES
Current liabilities:
Accounts payable 123,609 59,669 183,278
Accrued wages and benefits payable 40,261 51,083 91,344
Taxes payable 1,261 6,182 7,443
Custodial accounts ‐ 310,403 310,403
Unearned revenue 184,634 ‐ 184,634
Compensated absences payable 22,908 69,137 92,045
Total current liabilities 372,673 496,474 869,147
Noncurrent liabilities:
Compensated absences payable 7,075 26,489 33,564
Net pension liability 293,867 377,008 670,875
Total noncurrent liabilities 300,942 403,497 704,439
TOTAL LIABILITIES 673,615 899,971 1,573,586
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 118,187 151,624 269,811
TOTAL DEFERRED INFLOWS OF RESOURCES 118,187 151,624 269,811
NET POSITION
Net investment in capital assets 20,097,297 6,958,237 27,055,534
Unrestricted 4,595,295 (431,002) 4,164,293
TOTAL NET POSITION $ 24,692,592 $ 6,527,235 $ 31,219,827
City of Renton
Combining Statement of Net Position
Nonmajor Enterprise Funds
December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-32
Airport Golf Course Total Enterprise Funds
OPERATING REVENUES
Charges for services $ 326,043 $ 1,892,886 $ 2,218,929
Miscellaneous revenue 3,177,280 437,003 3,614,283
TOTAL OPERATING REVENUES 3,503,323 2,329,889 5,833,212
OPERATING EXPENSES
Supplies 49,523 387,096 436,619
Personnel services 812,527 1,393,797 2,206,324
Contracted services 712,616 274,204 986,820
Taxes 4,247 11,379 15,626
Depreciation and amortization 1,134,654 211,068 1,345,722
TOTAL OPERATING EXPENSES 2,713,567 2,277,544 4,991,111
OPERATING INCOME (LOSS) 789,756 52,345 842,101
NONOPERATING REVENUES (EXPENSES)
Intergovernmental revenues 138,021 284 138,305
Interest revenue 54,793 4,927 59,720
Other non‐operating revenue (expenses) 1,375 8,429 9,804
TOTAL NONOPERATING REVENUES (EXPENSES) 194,189 13,640 207,829
INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 983,945 65,985 1,049,930
Transfers out (13,820) ‐ (13,820)
CHANGE IN NET POSITION 970,125 65,985 1,036,110
NET POSITION ‐ JANUARY 1 23,722,467 6,461,250 30,183,717
NET POSITION ‐ DECEMBER 31 $ 24,692,592 $ 6,527,235 $ 31,219,827
City of Renton
Combining Statement of Revenues, Expenditures, and Changes in Net Position
Enterprise Funds
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-33
T0TAL
NON‐MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services 3,366,554$ 2,360,291$ 5,726,845$
Cash paid to suppliers for goods & services (804,121) (620,075) (1,424,196)
Cash paid to employees (1,151,813) (1,569,002) (2,720,815)
Other non‐operating receipts 1,375 8,429 9,804
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 1,411,995 179,643 1,591,638
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to other funds (13,820) ‐ (13,820)
Operating grants 111,928 5,259 117,187
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES 98,108 5,259 103,367
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets (79,670) (14,937) (94,607)
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES (79,670) (14,937) (94,607)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for investments (21,872) (11,550) (33,422)
Interest on investments 53,801 5,076 58,877
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES 31,929 (6,474) 25,455
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS 1,462,362 163,491 1,625,853
CASH & CASH EQUIVALENTS, JANUARY 1 2,766,723 219,169 2,985,892
CASH & CASH EQUIVALENTS, DECEMBER 31 4,229,085$ 382,660$ 4,611,745$
City of Renton
BUSINESS‐TYPE ACTIVITIES
ENTERPRISE FUNDS
Combining Statement of Cash Flows
Non‐Major Enterprise Funds
For the Year Ended December 31, 2018
Page 1 of 2
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-34
TOTAL
NON‐MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)789,756$ 52,345$ 842,101$
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization 1,134,654 211,068 1,345,722
Other non‐operating revenue 1,375 8,429 9,804
(Increase) decrease in
accounts receivable (152,701) 11,179 (141,522)
(Increase) decrease in
due from other funds ‐ (13,033) (13,033)
(Increase) decrease in inventory
& prepaid items ‐ 12,374 12,374
(Increase) decrease in deferred outflows
related to pensions 56,019 28,639 84,658
Increase (decrease) in operating
accounts payable (37,897) 39,913 2,016
Increase (decrease) in accrued taxes
& other short‐term liabilities 162 317 479
Increase (decrease) in
customer deposits ‐ 32,256 32,256
Increase (decrease) in
unearned revenues 15,932 ‐ 15,932
Increase (decrease) in accrued
employee leave benefits 13,584 16,695 30,279
Increase (decrease) in net pension liability
and deferred inflows related to pensions (408,889) (220,539) (629,428)
Total adjustments 622,239 127,298 749,537
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 1,411,995$ 179,643$ 1,591,638$
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Depreciation & amortization 1,134,654$ 211,068$ 1,345,722$
Increase (decrease) in fair value of investments (2,214)$ (199)$ (2,413)$
City of Renton
ENTERPRISE FUNDS
BUSINESS‐TYPE ACTIVITIES
Combining Statement of Cash Flows
Non‐Major Enterprise Funds
For the Year Ended December 31, 2018
Page 2 of 2
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-35
Equipment Rental Insurance
Total Nonmajor
Internal Service Funds
ASSETS
Current assets:
Cash & cash equivalents $ 10,752,827 $ 30,415,032 $ 41,167,859
Investments at fair value 2,165,502 6,125,256 8,290,758
Receivables (net of allowances):
Customer accounts 35,960 26,707 62,667
Interest & penalties 48,967 126,816 175,783
Interfund loans ‐ 175,000 175,000
Supplies inventory 216,314 ‐ 216,314
Prepayments ‐ 172,756 172,756
Total current assets 13,219,570 37,041,567 50,261,137
Noncurrent assets:
Advances due from other funds ‐ 175,000 175,000
Capital assets not being depreciated:
Construction in Progress 271,931 ‐ 271,931
Capital assets being depreciated/amortized:
Capital assets (net) 11,532,940 ‐ 11,532,940
Intangible assets (net) 347,947 ‐ 347,947
Total noncurrent assets 12,152,818 175,000 12,327,818
TOTAL ASSETS 25,372,388 37,216,567 62,588,955
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 477,046 45,167 522,213
TOTAL DEFERRED OUTFLOWS OF RESOURCES 477,046 45,167 522,213
LIABILITIES
Current liabilities:
Accounts payable 497,304 82,300 579,604
Claims incurred but not reported ‐ 1,826,850 1,826,850
Retainage payable 3,507 ‐ 3,507
Accrued wages and benefits payable 282,035 26,416 308,451
Taxes payable 2,130 ‐ 2,130
Compensated absences payable 285,349 23,097 308,446
Leases payable 35,849 ‐ 35,849
Total current liabilities 1,106,174 1,958,663 3,064,837
Noncurrent liabilities:
Compensated absences payable 140,797 8,876 149,673
Net pension liability 2,309,271 218,645 2,527,916
OPEB liability ‐ 43,028,675 43,028,675
Total noncurrent liabilities 2,450,068 43,256,196 45,706,264
TOTAL LIABILITIES 3,556,242 45,214,859 48,771,101
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 928,737 87,934 1,016,671
TOTAL DEFERRED INFLOWS OF RESOURCES 928,737 87,934 1,016,671
NET POSITION
Net investment in capital assets 12,116,969 ‐ 12,116,969
Unrestricted 9,247,486 (8,041,059) 1,206,427
TOTAL NET POSITION $ 21,364,455 $ (8,041,059) $ 13,323,396
City of Renton
Combining Statement of Net Position
Nonmajor Internal Service Funds
December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-36
Equipment Rental Insurance
Total Internal Service
Funds
OPERATING REVENUES
Charges for services $ 16,584,583 $ 16,134,746 $ 32,719,329
Miscellaneous revenue 268,176 ‐ 268,176
TOTAL OPERATING REVENUES 16,852,759 16,134,746 32,987,505
OPERATING EXPENSES
Supplies 2,333,519 14,641 2,348,160
Personnel services 6,416,359 731,024 7,147,383
Contracted services 4,920,878 815,177 5,736,055
Insurance ‐ 10,044,318 10,044,318
Taxes 6,315 3,489 9,804
Depreciation and amortization 2,481,112 ‐ 2,481,112
TOTAL OPERATING EXPENSES 16,158,183 11,608,649 27,766,832
OPERATING INCOME (LOSS) 694,576 4,526,097 5,220,673
NONOPERATING REVENUES (EXPENSES)
Intergovernmental revenues ‐ 45,754 45,754
Interest revenue 160,085 461,590 621,675
Gain (loss) on capital assets 35,889 ‐ 35,889
Other non‐operating revenue (expenses) 416 4,422 4,838
Interest expense (1,831) ‐ (1,831)
Insurance Recoveries ‐ 288,925 288,925
TOTAL NONOPERATING REVENUES (EXPENSES) 194,559 800,691 995,250
INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 889,135 5,326,788 6,215,923
Transfers in 1,531,673 ‐ 1,531,673
Transfers out ‐ (7,910) (7,910)
CHANGE IN NET POSITION 2,420,808 5,318,878 7,739,686
NET POSITION ‐ JANUARY 1 18,943,647 32,442,894 51,386,541
Effect of change in accounting principle ‐ (45,802,831) (45,802,831)
NET POSITION ‐ JANUARY 1 RESTATED 18,943,647 (13,359,937) 5,583,710
NET POSITION ‐ DECEMBER 31 $ 21,364,455 $ (8,041,059) $ 13,323,396
City of Renton
Combining Statement of Revenues, Expenditures, and Changes in Net Position
Internal Service Funds
For the Year Ended December 31, 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-37
TOTAL
EQUIPMENT INSURANCE INTERNAL
RENTAL FUND SERVICE FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from other funds for services $ 16,837,748 $ 16,129,646 $ 32,967,394
Cash paid to suppliers for goods & services (7,291,153) (14,055,912) (21,347,065)
Cash paid to employees (6,971,454) (733,126) (7,704,580)
Other non‐operating receipts 416 293,347 293,763
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 2,575,557 1,633,955 4,209,512
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds 1,531,673 ‐ 1,531,673
Transfers to other funds ‐ (7,910) (7,910)
Operating grants ‐ 45,754 45,754
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES 1,531,673 37,844 1,569,517
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Proceeds from the sale of equipment 74,250 ‐ 74,250
Acquisition & construction of capital assets (4,544,925) ‐ (4,544,925)
Principal payments on capital leases (35,130) ‐ (35,130)
Interest payments on capital leases (1,831) ‐ (1,831)
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES (4,507,636) ‐ (4,507,636)
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal proceeds from interfund loans ‐ 175,000 175,000
Proceeds from sale of investments 883,943 1,777,738 2,661,681
Interest on investments and loans 148,068 458,711 606,779
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES 1,032,011 2,411,449 3,443,460
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS 631,605 4,083,248 4,714,853
CASH & CASH EQUIVALENTS, JANUARY 1 10,121,222 26,331,784 36,453,006
CASH & CASH EQUIVALENTS, DECEMBER 31 $ 10,752,827 $ 30,415,032 $ 41,167,859
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended December 31, 2018
Page 1 of 2
City of Renton
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-38
TOTAL
EQUIPMENT INSURANCE INTERNAL
RENTAL FUND SERVICE FUNDS
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)694,576$ 4,526,097$ 5,220,673$
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization 2,481,112 ‐ 2,481,112
Other non‐operating revenue 416 293,347 293,763
(Increase) decrease in
accounts receivable (15,011) (5,100) (20,111)
(Increase) decrease in inventory
& prepaid items (14,503) (15,583) (30,086)
(Increase) decrease in deferred outflows
related to pensions 74,059 1,543 75,602
Increase (decrease) in operating
accounts payable (9,953) (111,783) (121,736)
Increase (decrease) in accrued taxes
& other short‐term liabilities (5,985) (276,765) (282,750)
Increase (decrease) in
customer deposits ‐ ‐ ‐
Increase (decrease) in
OPEB liability ‐ (2,774,156) (2,774,156)
Increase (decrease) in accrued
employee wages and benefits 8,805 18,288 27,093
Increase (decrease) in net pension liability
and deferred inflows related to pensions (637,959) (21,933) (659,892)
Total adjustments 1,880,981 (2,892,142) (1,011,161)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 2,575,557$ 1,633,955$ 4,209,512$
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Depreciation & amortization 2,481,112$ ‐$ 2,481,112$
Increase (decrease) in fair value of investments (5,629)$ (15,921)$ (21,550)$
For the Year Ended December 31, 2018
Combining Statement of Cash Flows
Internal Service Funds
Page 2 of 2
City of Renton
2018 Comprehensive Annual Financial Report City of Renton, Washington
Combining Statements & Schedules, 6-39
STATISTICAL SECTION
December 31, 2018
Presentations included in the Statistical Section of the Comprehensive Annual Financial Report (CAFR)
provide users detailed information as a context for understanding what the information in the
financial statements, note disclosures and the supporting schedules say about the government’s
overall financial health. The section is divided into five categories based on the following:
FINANCIAL TRENDS
These schedules contain trend information to help the reader understand how the government’s
financial performance and well‐being have changed over time.
REVENUE CAPACITY
These schedules present information to help the reader assess the government’s most significant local
revenue source – property tax.
DEBT CAPACITY
These schedules present information to help the reader assess the affordability of the government’s
current levels of outstanding debt and the government’s ability to issue additional debt in the future.
DEMOGRAPHIC AND ECONOMIC INFORMATION
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the government’s financial activities take place.
OPERATING INFORMATION
These schedules contain service and infrastructure data to help the reader understand how the
information in the government’s financial report relates to the services the government provides and
the activities it performs.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-1
TABLE 1NET POSITION BY COMPONENTLAST TEN FISCAL YEARS(accrual basis of accounting)2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Governmental activitiesNet investment in capital assets378,440,636$ 383,016,494$ 373,641,842$ 425,581,342$ 445,277,657$ 457,337,430$ 467,609,532$ 453,278,699$ 466,996,814$ 473,667,290$ Restricted20,882,824 11,664,101 26,432,127 7,953,634 23,873,159 18,973,294 26,987,147 18,939,968 31,304,501 36,805,133 Unrestricted35,033,629 45,911,214 53,244,297 54,159,950 41,681,336 57,074,155 50,203,343 61,174,111 77,331,398 67,657,377 Total governmental activities net position434,357,089$ 440,591,809$ 453,318,266$ 487,694,926$ 440,591,809$ 453,318,266$ 544,800,022$ 533,392,778$ 575,632,713$ 578,129,800$ Business‐type activitiesNet investment in capital assets208,682,683$ 214,001,083$ 217,103,722$ 224,893,271$ 241,679,585$ 255,631,135$ 271,016,825$ 279,506,339$ 281,531,560$ 285,507,078$ Restricted4,029,537 58,747 ‐ 2,909,578 2,909,578 2,909,578 2,909,578 2,909,578 2,810,145 2,810,145 Unrestricted18,209,611 17,743,107 23,340,910 28,692,024 34,537,714 41,941,669 51,330,478 63,236,920 72,699,879 84,471,108 Total business‐type activities net position230,921,831$ 231,802,937$ 240,444,632$ 256,494,873$ 231,802,937$ 240,444,632$ 325,256,881$ 345,652,837$ 357,041,584$ 372,788,331$ Primary governmentNet investment in capital assets597,017,577$ 597,017,577$ 590,745,564$ 686,957,242$ 686,957,242$ 712,968,565$ 738,626,357$ 732,785,038$ 748,528,374$ 759,174,368$ Restricted11,722,848 11,722,848 26,432,127 26,782,737 26,782,737 21,882,872 29,896,725 21,849,546 34,114,646 39,615,278 Unrestricted63,654,321 63,654,321 76,585,207 76,219,050 76,219,050 99,015,824 101,533,821 124,411,031 150,031,277 152,128,485 Total primary government net position672,394,746$ 672,394,746$ 693,762,898$ 789,959,029$ 672,394,746$ 693,762,898$ 870,056,903$ 879,045,615$ 932,674,297$ 950,918,131$ Source : City of Renton Finance DivisionFiscal Year2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-2
TABLE 2CHANGES IN NET POSITIONLAST TEN FISCAL YEARS(accrual basis of accounting)Page 1 of 2EXPENSES2009201020112012201320142015201620172018Government activities:General government18,808,404$ 10,018,501$ 4,268,321$ 9,859,550$ 10,923,530$ 10,928,669$ 9,829,338$ 10,230,923$ 11,619,780$ 11,693,087$ Judicial2,134,283 2,402,692 2,563,989 2,610,481 2,372,115 2,406,797 2,342,557 2,501,487 2,631,350 2,612,931 Public safety44,361,089 50,657,146 52,627,849 58,152,773 53,930,214 55,143,750 57,863,131 49,272,668 34,970,381 35,406,820 Utilities2,440,801 2,425,279 2,151,322 2,643,930 964,942 746,363 694,469 691,798 686,356 675,076 Transportation11,765,835 16,903,492 25,376,308 13,571,691 18,842,487 14,641,476 15,918,953 19,560,699 18,369,818 18,828,845 Economic and natural environment6,669,911 7,363,396 6,491,151 6,330,233 7,146,022 6,584,984 7,362,822 7,578,069 8,280,445 7,514,571 Health and human services328,333 882,740 819,138 827,802 1,873,028 1,885,761 1,925,253 2,098,190 2,210,690 2,260,902 Culture and recreation16,992,266 13,518,312 11,955,737 13,011,327 12,938,589 12,338,932 13,636,384 12,999,863 14,307,593 13,802,266 Interest on long‐term debt2,848,081 2,127,347 2,165,960 3,087,269 3,411,488 2,932,298 1,247,934 948,685 1,146,722 1,077,950 Total governmental activities expenses106,349,003 106,298,905 108,419,775 110,095,056 112,402,415 107,609,030 110,820,841 105,882,382 94,223,135 93,872,448 Business‐type activities:Airport1,865,481 1,993,202 2,026,804 2,251,434 3,300,550 2,771,616 4,319,084 2,974,582 3,178,004 2,713,567 Golf course2,303,192 2,296,870 2,099,936 2,139,847 2,250,748 2,298,804 2,200,740 2,173,590 2,386,006 2,277,544 Solid Waste14,143,956 14,826,315 14,434,201 14,780,647 16,226,857 17,157,550 16,907,652 16,850,054 19,367,124 19,648,560 Waterworks Utility35,617,861 36,574,469 37,148,813 39,419,864 40,333,170 43,274,617 45,184,377 53,960,170 51,849,388 50,408,232 Total Business‐type activities expenses53,930,490 55,690,856 55,709,754 58,591,792 62,111,325 65,502,587 68,611,853 75,958,396 76,780,522 75,047,903 Total Primary Government expenses160,279,493 161,989,761 164,129,529 168,686,848 174,513,740 172,913,375 179,432,694 181,840,778 171,003,657 168,920,351 PROGRAM REVENUESGovernmental activities:Charges for services:General government 2,864,232 2,363,280 2,756,613 2,586,799 3,372,595 4,336,464 4,354,150 5,028,744 7,954,848 7,172,729 Judicial 5,176,402 3,706,436 3,565,216 3,493,071 3,011,028 3,059,061 3,476,485 3,077,775 3,318,723 5,480,833 Public safety643,970 761,835 641,483 650,129 6,578,528 6,961,962 7,677,351 4,836,073 1,478,987 1,561,148 Utilities951,940 1,233,424 1,015,323 1,326,517 3,755 278,568 668 1,436 ‐ ‐ Transportation 3,178,543 3,111,259 3,275,596 3,329,054 2,712,137 3,140,008 3,823,320 2,638,216 2,218,114 3,568,302 Economic and natural environment1,965,125 2,419,488 2,486,396 3,130,530 3,766,499 3,791,108 5,641,135 4,992,629 4,814,488 4,747,410 Culture and recreation 2,377,290 2,299,635 1,793,863 1,811,127 2,096,514 2,676,783 2,331,046 2,260,812 2,347,627 2,176,752 Operating grants and contributions11,029,657 10,520,151 15,540,897 12,794,132 6,621,431 6,422,816 6,614,030 8,226,834 5,984,222 6,921,332 Capital grants and contributions16,091,934 9,102,331 12,135,982 33,529,033 23,077,914 11,640,501 8,658,075 10,913,636 10,167,007 5,700,805 Total governmental activities program revenues44,279,093 35,517,839 43,211,369 62,650,392 51,240,401 42,307,271 42,576,260 41,976,155 38,284,016 37,329,311 Business‐type activities:Charges for services:Airport1,254,732 2,039,477 2,294,383 2,436,543 2,494,436 2,652,808 2,614,311 2,718,441 2,820,574 3,503,323 Golf course2,134,394 2,095,751 2,014,983 2,128,452 2,142,433 2,127,512 2,302,635 2,196,062 2,166,680 2,329,889 Solid waste utility14,234,026 15,383,667 15,015,434 14,905,934 16,429,165 17,310,807 17,146,266 17,152,279 17,787,705 19,656,483 Waterworks Utility33,278,345 35,545,308 43,003,494 47,314,389 49,024,626 51,354,475 53,263,702 53,685,591 56,202,702 57,067,220 Total Business‐type charges50,901,497 55,064,203 62,328,294 66,785,318 70,090,660 73,445,602 75,326,914 75,752,373 78,977,661 82,556,915 Operating grants and contributions46,267 125,819 465,468 165,164 105,695 1,108,920 704,367 8,400,008 1,213,388 572,719 Capital grants and contributions7,556,701 1,056,961 2,473,309 7,668,558 18,879,992 12,531,671 23,291,274 12,559,755 7,664,875 6,285,279 Total business‐type activities program revenues58,504,465 56,246,983 65,267,071 74,619,040 89,076,347 87,086,193 99,322,555 96,712,136 87,855,924 89,414,913 Total primary government program revenues102,783,558$ 91,764,822$ 108,478,440$ 137,269,432$ 140,316,748$ 129,393,464$ 141,898,815$ 138,688,291$ 126,139,940$ 126,744,224$ Net (expense)/revenueGovernmental activities(62,069,910)$ (70,781,066)$ (65,208,406)$ (47,444,664)$ (61,162,014)$ (65,301,759)$ (68,244,581)$ (63,906,227)$ (55,939,119)$ (56,543,137)$ Business‐type activities4,573,975 556,127 9,557,317 16,027,248 26,965,022 21,583,606 30,710,702 20,753,740 11,075,402 14,367,010 Total primary government net expense(57,495,935)$ (70,224,939)$ (55,651,089)$ (31,417,416)$ (34,196,992)$ (43,718,153)$ (37,533,879)$ (43,152,487)$ (44,863,717)$ (42,176,127)$ Fiscal Year2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-3
TABLE 2CHANGES IN NET POSITIONLAST TEN FISCAL YEARS(accrual basis of accounting)Page 2 of 2GENERAL REVENUES AND OTHER CHANGES2009201020112012201320142015201620172018Governmental activities:TaxesProperty taxes32,300,319$ 32,586,884$ 33,309,975$ 33,932,290$ 32,536,533$ 35,112,669$ 35,418,323$ 37,105,988$ 24,669,058$ 19,046,123$ Timber taxes‐ ‐ ‐ ‐ ‐ ‐ Retail sales taxes22,065,316 21,591,375 22,008,777 23,653,706 25,541,972 27,223,521 29,567,506 32,933,987 33,381,395 33,564,285 Business taxes14,876,496 16,883,888 16,870,284 17,632,759 16,439,502 18,575,350 20,561,270 26,376,964 30,135,189 30,055,917 Excise taxes4,923,978 4,351,914 4,113,705 4,286,883 5,838,149 4,595,540 5,736,582 6,123,700 7,193,498 7,951,859 Penalties and interest1,353 276 380 9,486 ‐ ‐ ‐ ‐ ‐ ‐ Investment earnings1,118,889 794,793 602,516 589,616 613,097 1,137,752 1,303,414 1,441,471 1,587,589 2,374,510 Miscellaneous172,594 82,352 991,772 1,179,112 1,232,066 760,292 580,042 1,746,009 689,371 938,045 Gain on sale of capital assets1‐ ‐ ‐ ‐ ‐ ‐ 17,109 13,710 992,114 914,008 Transfers(100,000) (17,095) 37,454 233,961 2,341,160 449,362 131,491 173,917 218,212 (256,835) Special ItemsTransfer of fire operations(32,665,407) ‐ ‐ Transfer of library assets(18,527,290) ‐ ‐ Total governmental activities75,358,945 76,274,387 77,934,863 81,517,813 84,542,479 87,656,244 93,315,737 54,723,049 98,866,426 94,587,912 Business‐type activities:Investment earnings396,957 224,974 117,090 105,129 94,077 96,625 225,515 332,931 483,356 1,105,019 Miscellaneous1,207,689 172,663 71,235 44,842 124,281 30,863 38,014 18,051 48,201 17,883 Gain on sale of capital assets1‐ ‐ ‐ ‐ ‐ 93,773 ‐ ‐ ‐ ‐ Transfers100,000 17,095 (37,454) (233,961) (2,341,160) (449,362) (131,491) (173,917) (218,212) 256,835 Total business‐type activities1,704,646 414,732 150,871 (83,990) (2,122,802) (228,101) (569,680) 177,065 313,345 1,379,737 Total primary government77,063,591$ 76,689,119$ 78,085,734$ 81,433,823$ 82,419,677$ 87,428,143$ 92,746,057$ 54,900,114$ 99,179,771$ 95,967,649$ CHANGES IN NET POSITIONGovernmental activities13,289,035$ 5,493,321$ 12,726,457$ 34,073,149$ 23,380,465$ 22,552,727$ 25,071,156$ (9,183,178)$ 42,927,307$ 38,044,775$ Business‐type activities6,278,621 970,859 9,708,188 15,943,258 24,842,220 21,355,505 30,842,740 20,930,805 11,388,747 15,746,747 Total primary government19,567,656$ 6,464,180$ 22,434,645$ 50,016,407$ 48,222,685$ 43,908,232$ 55,913,896$ 11,747,627$ 54,316,054$ 53,791,522$ Source : City of Renton Finance Division1 Prior to 2014 Gain (loss) on sale of capital assets were previously reported as "Miscellaneous".2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-4
TABLE 3FUND BALANCE OF GOVERNMENT FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)2009 2010 2011 2012 2013 2014 2015 2016 2017 2018General fundReserved8,000$ 2,468,569$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Unreserved13,478,727 12,020,420 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Nonspendable1‐ ‐ 1,149,907 ‐ ‐ ‐ ‐ 200,000 ‐ ‐ Restricted1‐ ‐ 786,611 690,655 303,051 250,717 156,105 974,770 1,341,610 1,428,578 Committed1‐ ‐ ‐ ‐ 4,236,362 ‐ 1,185,085 ‐ ‐ ‐ Assigned1‐ ‐ 13,812,258 16,566,659 15,929,712 286,516 260,342 236,772 8,853,636 9,545,607 Unassigned1‐ ‐ ‐ 1,427,130 ‐ 19,517,236 20,183,002 28,579,805 29,077,267 41,085,590 Total general fund13,486,727$ 14,488,989$ 15,748,776$ 18,684,444$ 20,469,125$ 20,054,469$ 21,784,534$ 29,991,347$ 39,272,513$ 52,059,775$ All other governmental fundsReserved‐$ 6,771,384$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Unreserved, reported in:Special revenue funds2,106,370 2,073,227 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Debt service funds367,652 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital project funds18,408,802 8,701,843 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Nonspendable1‐ ‐ ‐ ‐ ‐ ‐ ‐ 64,783 ‐ ‐ Restricted1‐ ‐ 19,152,913 23,730,688 22,888,877 18,722,577 7,841,326 7,528,348 13,049,222 14,852,808 Committed1‐ ‐ 7,468,491 6,085,812 8,513,816 ‐ 15,844,472 20,134,020 11,763,443 17,125,460 Assigned1‐ ‐ 6,828,410 1,220,008 137,605 12,594,651 3,290,869 6,150,838 18,261,594 13,963,776 Unassigned1‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total all other governmental funds20,882,824$ 17,546,454$ 33,449,814$ 31,036,508$ 31,540,298$ 31,317,228$ 26,976,667$ 33,877,989$ 43,074,259$ 45,942,044$ Source : City of Renton Finance Division1 In 2011, implementation of GASB 54 requires new designations of fund balance; prior year data not available in prescribed format $‐ $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,0002009201020112012201320142015201620172018General fundAll other governmental funds2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-5
TABLE 4CHANGES IN FUND BALANCES OF GOVERNMENT FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)2009201020112012201320142015201620172018REVENUESTaxes71,545,700$ 75,223,750$ 76,266,688$ 79,878,467$ 80,300,752$ 85,244,091$ 91,417,887$ 102,741,519$ 95,576,042$ 90,772,400$ Licenses and permits6,226,371 3,975,441 4,410,862 4,843,446 6,828,797 7,724,038 8,541,090 7,504,210 6,462,056 5,892,914 Intergovernmental23,968,449 16,203,499 19,441,957 33,430,078 22,879,043 13,717,109 10,546,797 14,058,888 10,944,312 9,662,231 Charges for services4,543,420 4,635,502 4,191,024 4,497,039 9,641,812 11,030,501 13,337,291 9,077,603 6,863,066 8,036,603 Fines and forfeits3,724,162 3,439,926 3,150,326 3,053,938 2,788,573 2,708,477 3,049,542 3,131,466 2,978,800 4,330,947 Interfund revenues 13,228,110 3,244,928 3,057,642 3,375,134 294,039 264,539 296,649 ‐ ‐ ‐ Special assessments1,353 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Contributions516,805 2,952,649 4,288,448 1,488,384 3,878,978 947,927 187,616 792,699 551,968 598,662 Investment Earnings753,607 550,134 475,278 494,518 500,330 1,039,626 1,108,572 1,214,516 1,330,442 1,752,835 Miscellaneous Revenues171,004 82,353 648,608 942,998 2,208,853 2,117,198 1,994,532 3,036,059 2,280,640 2,375,518 Total revenues114,678,981 99,848,821 120,409,318 114,678,981 110,308,182 115,930,833 130,479,976 141,556,960 126,987,326 123,422,110 EXPENDITURES CurrentGeneral government12,923,999 10,532,537 10,937,806 8,371,489 9,348,241 10,142,332 11,334,485 11,961,260 12,492,727 12,267,911 Judicial2,134,283 2,402,692 2,563,989 2,610,481 2,364,631 2,400,097 2,461,668 2,536,835 2,650,678 2,727,689 Public safety46,048,967 48,904,653 52,986,589 54,378,422 53,112,143 55,174,723 58,211,446 47,619,491 36,063,481 39,768,443 Utilities2,431,213 2,345,459 2,048,971 2,608,369 468,442 252,826 236,245 238,057 240,611 244,244 Transportation7,043,665 10,748,393 10,038,344 10,137,750 11,769,366 10,092,425 10,898,934 13,631,324 12,567,755 12,947,686 Economic environment7,071,009 7,205,500 6,447,163 6,283,264 6,652,593 6,088,295 6,628,136 7,130,650 7,730,872 7,674,325 Health and human services19,726 787,768 511,934 523,577 1,827,736 1,840,312 1,876,841 2,068,295 2,175,116 2,371,428 Culture and recreation14,914,298 12,310,530 11,166,081 11,537,450 11,040,787 10,942,620 12,250,743 11,786,172 13,080,103 12,897,526 Capital outlay41,989,793 12,216,152 14,981,858 24,989,777 25,356,592 16,829,123 20,274,185 12,637,649 11,895,890 11,362,136 Debt servicePrincipal payments2,327,138 2,682,672 2,783,237 7,116,917 4,744,439 5,076,530 4,834,225 4,530,216 4,672,672 4,480,075 Interest and fiscal charges2,629,157 2,231,823 2,502,876 3,368,903 3,315,011 3,324,433 1,660,586 1,570,322 1,390,904 1,216,109 Total expenditures139,533,248 109,621,957 122,980,366 139,533,248 112,368,179 116,968,848 130,667,494 115,710,271 104,960,809 107,957,572 EXCESS (DEFICIENCY) OF REVENUESOVER EXPENDITURES(24,854,267) (9,773,136) (2,571,048) (24,854,267) (2,059,997) (1,038,015) (187,518) 25,846,689 22,026,517 15,464,538 OTHER FINANCING SOURCES (USES)Transfers in15,059,649 2,545,659 3,886,650 4,183,185 5,860,038 5,175,933 9,326,629 10,252,886 9,891,918 2,440,000 Transfer (out)(10,446,000) (2,822,330) (4,144,157) (4,113,465) (6,102,584) (8,463,285) (10,786,043) (8,480,721) (14,374,763) (3,931,548) Interfund loan proceeds6,798,085 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Refunding bonds issued‐ 6,170,000 9,425,000 ‐ ‐ ‐ 12,520,000 ‐ ‐ ‐ GO Bonds issued‐ ‐ 16,715,000 ‐ 3,200,000 ‐ ‐ ‐ ‐ ‐ Premium on general obligation debt‐ 443,484 2,268,169 ‐ ‐ ‐ 1,171,804 ‐ ‐ ‐ Sale of capital assets‐ ‐ 500 375,039 9,821 5,170 ‐ ‐ 916,547 1,662,460 Payment to refunded bond escrow agent‐ (6,406,088) (9,950,000) ‐ ‐ ‐ (13,573,341) ‐ ‐ ‐ Insurance Recoveries‐ ‐ ‐ ‐ ‐ 14,666 14,724 29,061 17,217 19,597 Total other financing sources (uses)11,411,734 (69,275) 18,201,162 444,759 2,967,275 18,201,162 (1,326,227) 1,801,226 (3,549,081) 190,509 SPECIAL ITEMSTransfer of fire operations(12,300,367) ‐ ‐ Total special items‐ ‐ ‐ ‐ ‐ ‐ ‐ (12,300,367) ‐ ‐ Net change in fund balance(13,442,533)$ (9,748,918)$ (2,697,405)$ (13,442,533)$ (2,129,272)$ 17,163,147$ (1,513,745)$ 15,347,548$ 18,477,436$ 15,655,047$ Debt service as a percentage ofnon capital expenditures5.08%4.91%5.18%7.70%7.98%7.98%5.88%5.92%6.52%5.90%Source : City of Renton Finance DivisionTables prior to 2010 used the titles "Security of persons and property" and "Mental and physical health" for functions now being referred to as "Public Safety" and "Health and Human Services", respectively. Tables Prior to 2013 used the title "Physical environment" for functions now being referred to as "Utilities".1 20019‐2012 Interfund revenues include amounts received for indirect costs allocated to departments. Beginning in 2013 these amounts are recorded as a reduction of the expenses, rather than revenue, in accordance with Generally Accepted Accounting Principles.2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-6
TABLE 5WATER UTILITY SYSTEMS REVENUE INFORMATIONLAST TEN FISCAL YEARS 12009 2010 2011 2012 2013 2014 2015 2016 2017 2018City Population83,650 90,927 92,590 93,910 95,540 97,130 98,470 101,300 102,700 104,100Water SystemRate Increase4.0% 10.0% 18.0% 16.0% 5.0% 5.0% 0.0% 0.0% 0.0% 0.0%BillingSingle Family3,951,900$ 4,141,600$ 4,811,663$ 9,575,942$ 5,887,603$ 6,339,653$ 6,526,128$ 6,386,047$ 6,558,914$ 6,567,867$ Multi‐Family, Commercial, Industrial4,416,609 4,621,839 5,538,570 6,410,943 6,772,971 6,977,452 6,823,857 7,072,435 7,297,389 7,277,957 Irrigation1,622,663 1,240,240 1,546,874 1,922,822 1,468,453 2,245,010 2,537,017 2,357,006 2,425,206 2,745,461 Fire Service166,858 186,289 227,699 275,952 292,149 311,936 315,931 322,539 333,951 337,687 Other2307,738 416,032 342,100 454,370 443,825 488,502 607,944 506,044 489,559 455,627 Total Water Billing10,465,768 10,606,000 12,466,906 18,640,029 14,865,001 16,362,553 16,810,877 16,644,071 17,105,020 17,384,599 Wastewater SystemRate Increase4.0% 4.0% 42.0% 5.0% 5.0% 5.0% 0.0% 0.0% 4.0% 4.0%BillingSingle Family2,784,269$ 2,896,646$ 4,194,277$ 4,464,521$ 4,757,734$ 5,069,164$ 5,173,757$ 5,262,490$ 5,551,146$ 5,820,715$ Multi‐Family, Commercial, Industrial, Other 2,551,837 2,651,028 3,751,082 4,059,646 4,359,018 4,560,119 4,217,237 4,467,264 4,627,298 4,794,217 Total City Wastewater Billing5,336,106 5,547,674 7,945,359 8,524,167 9,116,752 9,629,283 9,390,994 9,729,754 10,178,444 10,614,932 King County Metro Charges11,724,091 11,774,984 13,468,616 13,751,047 15,357,431 15,440,140 15,556,018 16,156,367 16,865,542 16,895,073 Total All17,060,197 17,322,658 21,413,975 22,275,214 24,474,183 25,069,423 24,947,012 25,886,121 27,043,986 27,510,005 Storm Water SystemRate Increase0.0% 0.0% 40.0% 11.0% 5.0% 5.0% 4.0% 4.0% 4.0% 4.0%BillingSingle Family1,813,889$ 1,834,693$ 2,602,439$ 2,952,519$ 3,130,413$ 3,332,758$ 3,498,882$ 3,671,923$ 3,848,958$ 4,022,009$ Multi‐Family, Commercial, Industrial, Other 3,185,980 3,075,580 4,342,672 4,801,900 5,035,416 5,742,495 6,012,017 6,235,149 6,690,859 6,906,349 Total Storm Water Billing4,999,869 4,910,273 6,945,111 7,754,419 8,165,829 9,075,253 9,510,899 9,907,072 10,539,817 10,928,358 1 Data for prior years provided where available.2 Includes wholesale water provided to the Skyway Water and Sewer District through a single metered connection.2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-7
TABLE 6PRINCIPAL RATEPAYERSPage 1 of 3WATER2018 2009% of Total% of TotalRatepayerRevenue Rank RevenueRevenue Rank RevenueBoeing Commercial606,636$ 1 3.49%297,225$ 1 2.84%King County494,013 2 2.84%225,654 3 2.16%City Of Renton488,243 3 2.81%289,907 2 2.77%Renton School District219,663 4 1.26%98,035 6 0.94%Skyway Water and Sewer District169,073 5 0.97% 114,334 5 1.09%Public Hosp Dist #1 of KC148,596 6 0.86%77,761 7 0.74%CPT The Landing LLC121,435 7 0.70%‐ 0.00%Copper Ridge Renton LLC116,965 8 0.67%‐ 0.00%PUR WASATCH Apartments LLC105,400 9 0.61%‐ 0.00%Renton Housing Authority101,488 10 0.58%‐ 0.00%Kidder Mathews‐Utility BPC209,822 2.01%Ashburn Condominiums70,843 8 0.68%Ergis IX Reo LLC70,317 9 0.67%Service Linen Supply Inc69,503 10 0.66%All Other8,392,632 48.28% 5,103,072 48.76%Single Family6,408,832 36.87% 3,839,299 36.68%Misc 11,412 0.07%Total Revenue17,384,388$ 100.00%10,465,773$ 100.00%Source : City of Renton Finance Division2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-8
TABLE 6PRINCIPAL RATEPAYERSPage 2 of 3SURFACE WATER20182009% of Total% of TotalRatepayerRevenue Rank RevenueRevenue Rank RevenueCity of Renton1,252,965$ 1 11.47%310,301$ 1 6.21%Boeing Commercial393,879 2 3.60%201,725 2 4.04%Renton School District283,852 3 2.60%130,484 3 2.61%King County239,948 4 2.20%119,840 4 2.40%WA State Dept of Transportation92,387 5 0.85%45,855 5 0.92%Kenworth Truck Company84,228 6 0.77%43,778 6 0.88%Stoneway Rock and Recycling67,783 7 0.62%35,230 7 0.71%Leisure Estates Office65,790 8 0.60%33,709 80.67%The Kroger Co52,207 9 0.48%26,703 10 0.53%CPT The Landing LLC49,169 10 0.45%Pearlmark Harvest Lakeshore LLC27,137 9 0.54%All Other4,391,577 40.19% 2,253,553 45.07%Single Family3,953,905 36.18% 1,771,547 35.43%Misc 667 0.01%Total Revenue10,928,357$ 100.00%4,999,861$ 100.00%Source : City of Renton Finance Division2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-9
TABLE 6PRINCIPAL RATEPAYERSPage 3 of 3WASTEWATER2018 2009% of Total% of TotalRatepayerRevenue Rank RevenueRevenue Rank RevenueBoeing Commercial237,825$ 1 2.24%127,923$ 1 2.40%Public Hosp Dist #1 of KC86,875 2 0.82%50,760 4 0.95%Copper Ridge Renton LLC74,689 3 0.70%‐ 11 0.00%Service Linen Supply Inc69,680 4 0.66% 57,637 3 1.08%Puur WASATCH Apartments LLC65,056 5 0.61%Sunset View Owner LLC64,659 6 0.61%City of Renton58,299 7 0.55%CPT The Landing LLC57,314 8 0.54%Renton Housing Authority56,181 9 0.53%Renton Preservation LP49,793 10 0.47%57,901 2 1.09%Ergis IX REO LLC41,147 6 0.77%The Arbors at Sunset42,381 5 0.79%Axis Grand Apartments36,486 8 0.68%Maplewood LLC37,364 7 0.70%Sobrato Development Co33,295 9 0.62%Renton School District33,097 10 0.62%All Other4,095,606 38.58% 2,108,343 39.51%Single Family5,697,222 53.67% 2,709,772 50.78%Misc 1,723 0.02%Total Revenue10,614,922$ 100.00%5,336,106$ 100.00%Source : City of Renton Finance Division2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-10
TABLE 7WATER UTILITY RATESLAST 10 FISCAL YEARS 1Page 1 of 32009 2010 2011 2012 2013 2014 2015 2016 2017 2018Water RatesMonthly RatesBasic Charge3/4"10.60 11.66 13.76 15.96 16.76 17.60 17.60 17.60 17.60 17.601"21.95 24.15 28.50 33.06 34.71 34.89 34.89 34.89 34.89 34.891 1/2"40.56 44.62 52.65 61.07 64.12 67.33 67.33 67.33 67.33 67.332"63.56 69.92 82.51 95.71 100.50 105.52 105.52 105.52 105.52 105.523"130.61 143.67 169.53 196.65 206.48 216.81 216.81 216.81 216.81 216.814"199.31 219.24 258.70 300.00 315.00 330.75 330.75 330.75 330.75 330.756"388.69 427.56 504.52 585.24 614.50 645.28 645.28 645.28 645.28 645.288"760.85 836.94 987.59 1,145.52 1,202.80 1,262.94 1,262.94 1,262.94 1,262.94 1,262.9410"1,134.11 1,247.52 1,472.07 1,707.60 1,792.98 1,882.63 1,882.63 1,882.63 1,882.63 1,882.6312"1,650.50 1,815.55 2,142.35 2,485.13 2,609.39 2,739.86 2,739.86 2,739.86 2,739.86 2,739.86Charge for Irrigation3/4"6.38 7.02 8.28 9.60 10.08 10.58 10.58 10.58 10.58 10.581"11.39 12.53 14.79 17.16 18.02 18.92 18.92 18.92 18.92 18.921 1/2"19.45 21.40 25.25 29.29 30.75 32.29 32.29 32.29 32.29 32.292"29.79 32.77 38.67 44.86 47.10 49.46 49.46 49.46 49.46 49.463"63.05 69.36 81.84 94.94 99.69 104.57 104.57 104.57 104.57 104.574"93.76 103.14 121.71 141.18 148.24 155.65 155.65 155.65 155.65 155.656"177.59 195.35 230.51 267.40 280.77 294.81 294.81 294.81 294.81 294.818"388.63 427.49 504.44 585.15 614.41 645.13 645.13 645.13 645.13 645.1310"499.73 549.70 648.65 752.43 790.05 829.55 829.55 829.55 829.55 829.5512"721.62 793.78 936.66 1,086.53 1,140.86 1,197.90 1,197.90 1,197.90 1,197.90 1,197.901 Data for prior years provided where available.2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-11
TABLE 7WATER UTILITY RATESLAST 10 FISCAL YEARS 1Page 2 of 32009 2010 2011 2012 2013 2014 2015 2016 2017 2018Water Rates, continuedMonthly RatesFire Meterper meter inch1" 3.78 4.16 4.91 5.69 5.97 6.27 6.27 6.27 6.27 6.271 1/2"4.22 4.64 5.48 6.36 6.68 7.01 7.01 7.01 7.01 7.012"5.43 5.97 7.04 8.17 8.58 9.01 9.01 9.01 9.01 9.013"14.33 15.76 18.60 21.58 22.66 23.79 23.79 23.79 23.79 23.794"17.64 19.40 22.89 26.55 27.88 29.27 29.27 29.27 29.27 29.276"25.34 27.87 32.89 38.15 40.06 42.06 42.06 42.06 42.06 42.068"34.12 37.53 44.29 51.38 53.95 56.65 56.65 56.65 56.65 56.6510"44.03 48.43 57.15 66.29 69.60 73.08 73.08 73.08 73.08 73.0812"N/A N/A N/A N/A N/A N/A N/A N/A 87.68 87.68Useage Ratesrate/100 cf (100cf = 748 gallons)Single Family:< 500 cf/mo1.53 1.68 1.98 2.30 2.42 2.54 2.54 2.54 2.54 2.54500‐1,000 cf/mo2.05 2.26 2.67 3.09 3.24 3.41 3.41 3.41 3.41 3.41< 1,000 cf/mo> 1,000 cf/mo2.59 2.85 3.36 3.90 4.10 4.30 4.30 4.30 4.30 4.30All Other UsersMulti‐family1.98 2.18 2.57 2.98 3.13 3.29 3.29 3.29 3.29 3.29Non‐residential2.10 2.31 2.73 3.16 3.32 3.48 3.48 3.48 3.48 3.48Private irrigation3.36 3.70 4.37 5.06 5.31 5.58 5.58 5.58 5.58 5.58City irrigation2.36 2.60 3.07 3.56 3.74 3.92 3.92 3.92 3.92 3.92Hydrant MeterN/A N/A N/A N/A N/A N/A N/A N/A 5.58 5.581 Data for prior years provided where available.2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-12
TABLE 7WATER UTILITY RATESLAST 10 FISCAL YEARS 1Page 3 of 32009 2010 2011 2012 2013 2014 2015 2016 2017 2018Surface Water RatesMonthly ratesSingle‐family7.41 7.41 10.37 11.51 12.09 12.69 13.20 13.73 14.28 14.85Commercial Minimums<= .5 acreMonthly rateLow Intensity18.34 18.34 25.68 28.50 29.93 31.42 32.68 33.99 35.35 36.76Medium Intensity26.53 26.53 37.14 41.23 43.29 45.46 47.28 49.17 51.14 53.18High Intensity34.21 34.21 47.89 53.16 55.82 58.61 60.95 63.39 65.93 68.56> .5 acreRate per acreLow Intensity36.69 36.69 51.37 57.02 59.87 62.86 65.37 67.98 70.70 73.53Medium Intensity53.04 53.04 74.26 82.42 86.54 90.87 94.50 98.28 102.21 106.30High Intensity68.41 68.41 95.77 106.31 111.63 117.21 121.90 126.78 131.85 137.13Wastewater RatesMonthly RatesSingle‐familyRenton16.17 16.82 23.88 25.08 26.33 27.65 27.65 27.65 28.76 29.91King County33.06 33.06 37.26 37.26 40.95 40.95 42.61 42.61 44.22 44.22Other UsersRentonBase charge2.44 2.54 3.61 3.79 4.05 4.25 4.25 4.25 4.42 4.60Per 100 cf1.83 1.90 2.70 2.83 2.97 3.12 3.12 3.12 3.24 3.37King CountyPer 750 cf33.06 33.06 37.26 37.26 40.95 40.95 42.61 42.61 44.22 44.221 Data for prior years provided where available.2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-13
TABLE 8GENERAL GOVERNMENT TAX REVENUE BY SOURCELAST TEN FISCAL YEARS(accrual basis of accounting) FISCAL YEAR PROPERTY TAX SALES TAX BUSINESS TAXES EXCISE TAX TOTAL TAX 200932,300,319 22,065,316 14,876,496 4,923,978 74,166,109 201032,586,884 21,591,375 16,883,888 4,351,914 75,414,061 201133,309,975 22,008,777 16,870,284 4,113,705 76,302,741 201233,932,290 23,653,706 17,632,759 4,286,883 79,505,638 201332,536,533 25,541,972 16,439,502 5,838,149 80,356,156 201435,112,669 27,223,521 18,575,350 4,595,540 85,507,080 201535,418,323 29,567,506 20,561,270 5,736,582 91,283,681 201637,105,988 32,933,987 26,376,964 6,123,700 102,540,639 201724,669,058 33,381,395 30,135,189 7,193,498 95,379,140 201819,046,123 33,564,285 30,055,917 7,951,859 90,618,184 Source : City of Renton Finance Division$0$20,000,000$40,000,000$60,000,000$80,000,000$100,000,000$120,000,0002009 2010 2011 2012 2013 2014 2015 2016 2017 2018Property TaxSales TaxBusiness TaxExcise Tax2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-14
TABLE 9PRINCIPAL PROPERTY TAX PAYERS20182009% OF TOTAL% OF TOTALTAXABLE1TAXABLE TAXABLE1TAXABLEASSESSEDASSESSED ASSESSEDASSESSEDTAXPAYERVALUE RANK VALUEVALUE RANK VALUEBoeing795,449,278$ 1 4.70%842,430,440$ 1 6.37%Renton Hotel Investors LLC206,568,088 2 1.22%Southport LLC176,101,000 3 1.04%Puget Sound Energy‐Elec/Gas165,648,658 4 0.98% 98,478,828 3 0.74%Pan Washington LLC (CPT The Landing LLC)158,631,853 5 0.94%Paccar154,412,041 6 0.91%111,316,800 2 0.84%Hotel at Southport LLC112,827,639 7 0.67%Port Quendall Company94,194,500 8 0.56%TLUS Rise Renton LP72,290,400 9 0.43%Oakesdale Business Park LLC66,950,400 10 0.40%AMB Property Corp61,191,200 4 0.46%Transwestern Harvest Lakeshore55,735,200 5 0.42%Providence Health53,706,700 6 0.41%Fred Meyer Stores Inc51,138,403 7 0.39%Axis Grand Holdings44,625,000 8 0.34%BRE Properties40,500,000 9 0.31%Black River JV LLC (formerly ECI Two WTC LLC)37,433,000 10 0.28%All Others14,905,976,194 88.15% 11,836,689,209 89.45%Total Assessed Valuation16,909,050,051$ 100.00% 13,233,244,780$ 100.00%Source: 1King County Department of Assessments2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-15
FISCAL YEARCOMMERCIAL PROPERTYINDUSTRIAL PROPERTY RESIDENTIAL PROPERTY LESS: EXEMPT REAL PROPERTY4PERSONAL PROPERTY3ADJUSTMENTS TO BASE2TOTAL TAXABLE ASSESSED VALUE3DIRECT TAX RATE32009 2,883,148,991 1,520,339,100 7,199,738,295 1,365,819,700 885,490,676 2,110,347,418 13,233,244,780 2.3692010 2,877,658,818 1,728,440,200 7,184,089,489 1,359,951,195 840,554,180 613,936,948 11,884,728,440 2.7122011 3,003,796,896 1,746,154,400 6,654,066,896 1,636,584,396 821,141,161 891,891,404 11,480,466,361 2.8322012 2,971,359,393 1,373,778,056 6,482,467,387 1,585,047,600 806,821,188 766,080,093 10,815,458,517 3.1002013 2,693,600,191 1,312,002,800 6,753,032,784 511,297,275 806,299,478 (464,916,779) 10,588,721,199 3.1002014 2,433,225,730 1,267,488,700 7,926,464,800 539,444,058 949,284,799 (704,693,058) 11,332,326,913 3.1522015 2,509,928,450 1,147,653,230 8,794,605,250 592,768,450 923,325,641 154,013,498 12,936,757,619 2.8332016 2,681,711,050 1,271,788,530 9,078,657,800 645,210,723 935,849,150 489,977,352 13,812,773,159 2.7102017 3,051,049,072 1,340,511,480 10,672,639,000 648,346,872 1,032,050,717 (341,864,438) 15,106,038,959 1.6102018 4,000,946,859 1,460,628,600 12,419,995,863 654,990,948 1,042,332,172 (1,359,862,495) 16,909,050,051 1.154Tax rate for general City operations is limited to $3.10 per $1,000 of assessed value (RCW 84.52.043). Tax rate limit may be reduced for any of the following reasons:Levy Limit; The One Percent Constitution Limit; City may levy taxes below the legal limit. For further explanation refer to Note 4 Property Taxes.TABLE 10ASSESSED VALUE OF TAXABLE PROPERTYLAST TEN FISCAL YEARSREAL PROPERTY 14Change to state law (RCW 84. 40.045 and 84.40.175) by the 2013 Legislature eliminated revaluation of government owned parcels.2Includes adjustments to the tax base for senior citizen exemptions, prior year omits, etc. 3King County Assessor Annual ReportsNote: 2008 and 2009 Adjustments to Base reflect the Benson Hill Annexation1King County Department of Assessments Data; prior year data has been updated with current method of data collection via City of Renton GIS Services.Sources:$2.37$2.71$2.83$3.10$3.10$3.15$2.83$2.71$1.61$1.151.0001.5002.0002.5003.0003.5004.0004.5005.0005.5006.000 $‐ $2 $4 $6 $8 $10 $12 $14 $16 $182009 2010 2011 2012 2013 2014 2015 2016 2017 2018BillionsTotal Taxable Assessed ValueDirect Tax Rate2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-16
TABLE 11PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARSDIRECT RATESOVERLAPPING RATESCITY OF RENTONCONSOLIDATED LEVYSCHOOL DISTRICTFISCAL YEAR OPERATING MILLAGE DEBT SERVICE MILLAGE TOTAL CITY MILLAGE State of Washington KING COUNTY OPERATING MILLAGE KING COUNTY DEBT SERVICE MILLAGE Port (Operating and Debt) Total Consolidated Levy(State, County & Port) SPECIAL DISTRICTS1 OPERATING MILLAGE DEBT SERVICE MILLAGE BUILDING FUND MILLAGE TOTAL SCHOOL MILLAGE TOTAL OVERLAPPING MILLAGETOTAL DIRECT AND OVERLAPPING MILLAGE2009 2.36923 ‐ 2.36923 1.96268 0.95271 0.14501 0.19700 3.25740 0.88686 1.42951 1.71049 0.30056 3.44056 7.58482 9.95405 2010 2.71184 ‐ 2.71184 2.22253 1.16171 0.12328 0.21597 3.72349 0.94152 1.70401 1.69983 0.33997 3.74381 8.40882 11.12066 2011 2.83207 ‐ 2.83207 2.27990 1.14534 0.19282 0.22366 3.84172 1.47089 1.86118 1.85585 0.35198 4.06901 9.38162 12.21369 2012 3.10000 ‐ 3.10000 2.42266 1.21477 0.20111 0.22982 4.06836 1.41988 2.08341 2.18222 0.37368 4.63931 10.12755 13.22755 2013 3.10000 ‐ 3.10000 2.56720 1.34165 0.19885 0.23324 4.34094 1.50331 2.49448 2.30546 0.55769 5.35763 11.20188 14.30188 2014 3.15158 ‐ 3.15158 2.47044 1.32983 0.18622 0.21533 4.20182 1.55393 2.44841 2.43218 0.52436 5.40495 11.16070 14.31228 2015 2.83283 ‐ 2.83283 2.28514 1.19644 0.14878 0.18885 3.81921 1.44353 2.41546 1.71412 0.46343 4.59301 9.85575 12.68858 2016 2.70956 ‐ 2.70956 2.16898 1.32977 0.15051 0.16954 3.81880 1.38929 2.35107 2.57140 0.43248 5.35495 10.56304 13.27260 2017 1.60954 ‐ 1.60954 2.03205 1.24349 0.13945 0.15334 3.56833 2.58252 2.30780 1.33954 1.31244 4.95978 11.11063 12.72017 2018 1.15364 ‐ 1.15364 2.91820 1.20156 0.12579 0.13518 4.38073 2.36018 2.32725 1.19417 1.14765 4.66907 11.40998 12.56362 Source: King County Codes and Levies1 Special Districts include Emergency Medical Services, Hospital districts, Library, Flood Zones, Fire Districts, and Other.9.95405 11.12066 12.21369 13.22755 14.30188 14.31228 12.68858 13.27260 12.72017 12.56362 ‐ 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.02009 2010 2011 2012 2013 2014 2015 2016 2017 2018CityConsolidated LevySpecial DistrictsSchool DistrictsTotal direct and overlapping2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-17
TABLE 12PROPERTY TAX LEVIES AND COLLECTIONSLAST TEN FISCAL YEARSTOTAL TAX COLLECTED WITHIN THE 1COLLECTIONS 1,2 TOTAL COLLECTIONS TO FISCAL LEVY FOR FISCAL YEAR OF THE LEVY IN SUBSEQUENT DATE 2YEAR FISCAL YEAR AMOUNT % OF LEVY YEARSAMOUNT % OF LEVY200931,058,589 30,249,856 97.4%808,611 31,058,467 100.0%201032,057,010 31,283,546 97.6%772,417 32,055,964 100.0%201132,330,000 31,538,875 97.6%795,105 32,333,980 100.0%201233,400,000 32,904,890 98.5%493,512 33,398,401 100.0%201332,563,355 32,170,706 98.1%405,769 32,576,475 100.0%201435,520,000 35,054,493 98.7%464,096 35,054,493 98.7%201536,420,000 36,026,892 98.9%389,835 36,026,892 98.9%201637,250,000 36,862,540 99.0%376,609 36,862,540 99.0%201724,200,000 23,756,999 98.2%415,056 23,756,999 98.2%201819,400,000 19,192,947 98.9%N/A 19,192,947 98.9%Sources: 1 Annual Tax Receivable Summary from King County2 Includes Collections and Levy Changes in subsequent years95%96%97%98%99%100% $‐ $5 $10 $15 $20 $25 $30 $35 $402009 2010 2011 2012 2013 2014 2015 2016 2017 2018MillionsTax LeviedCollected in Year Levied2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-18
TABLE 13SALES TAX COLLECTIONS BY SECTORLAST TEN FISCAL YEARS2009 2010 2011 2012 2013 2014 2015 2016 2017 2018RETAIL TRADE SECTORFurniture 1,065,605$ 1,143,289$ 1,186,244$ 1,320,786$ 1,461,950$ 1,552,003$ 1,670,492$ 1,727,458$ 1,820,848$ 514,310$ Electronics and Appliances1,036,569 1,086,334 988,355 962,595 742,150 785,507 815,051 832,583 815,267 860,895 General Merchandise1,573,716 1,646,351 1,652,442 1,722,213 1,707,695 1,733,558 1,826,260 1,856,109 1,859,900 1,790,704 Misc Retail Trade625,320 558,709 594,226 614,814 661,905 653,772 635,438 545,156 598,632 2,060,038 Others1,538,600 1,563,101 1,649,231 1,862,533 2,003,901 1,992,620 2,166,015 2,334,225 2,616,887 2,529,467 Subtotal Retail 5,839,810 5,997,784 6,070,498 6,482,942 6,577,601 6,717,460 7,113,256 7,295,531 7,711,534 7,755,414 OTHER SECTORSConstruction 2,991,530 2,218,377 1,576,127 1,844,545 2,694,710 2,316,188 3,019,042 4,682,830 4,246,126 4,585,841 Manufacturing549,265 410,896 452,778 551,622 552,474 446,615 448,230 514,526 460,241 500,576 Transportation567,401 400,848 366,556 620,297 492,237 770,889 1,592,590 1,295,994 1,090,118 1,349,230 Wholesale915,885 941,315 1,148,660 1,169,432 1,174,007 1,157,750 1,198,961 1,435,378 1,405,676 1,571,217 Automotive 3,215,641 3,035,251 3,179,418 3,361,196 3,731,241 4,104,744 4,597,151 4,809,026 4,775,263 5,118,532 Services3,616,076 3,694,342 3,960,151 4,221,446 4,362,344 4,576,039 5,145,373 5,635,186 5,884,292 6,855,309 Miscellaneous466,785 533,667 721,805 441,252 553,106 590,685 566,166 684,762 758,384 692,516 Subtotal ‐ Other Sectors 12,322,583 11,234,696 11,405,496 12,209,789 13,560,119 13,962,910 16,567,513 19,057,702 18,620,100 20,673,221 Total Sales Tax18,162,393$ 17,232,479$ 17,475,994$ 18,692,731$ 20,137,720$ 20,680,370$ 23,680,769$ 26,353,233$ 26,331,634$ 28,428,635$ Source : City of Renton Finance DivisionIn 2007, the State of Washington changed industry classification from the Standard Industry Classification (SIC) to the North American Industry Classification System (NAICS). This change reclassified various other retail activities to the expanded service classification. $‐ $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,0002009 2010 2011 2012 2013 2014 2015 2016 2017 2018RetailConstructionManufacturingTransportationWholesaleAutomotiveServicesMiscellaneous2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-19
TABLE 14
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
GOVERNMENTAL ACTIVITIES BUSINESS‐TYPE ACTIVITIES
FISCAL
YEAR
GENERAL
OBLIGATION
BONDS
SPECIAL
ASSESSMENT
BONDS
OTHER
GENERAL
OBLIGATION2
REVENUE
BONDS
OTHER LONG
TERM DEBT
TOTAL PRIMARY
GOVERNMENT
DEBT
PERCENTAGE
OF PERSONAL
INCOME1
DEBT PER
CAPITA
% of Actual
Taxable Value
of Property
2009 39,039,834 ‐ 38,973,547 41,110,000 8,284,962 127,408,343 11.99% 1,523 0.98%
2010 36,990,612 ‐ 38,511,875 36,955,000 7,357,546 119,815,033 11.14% 1,318 0.96%
2011 52,993,407 ‐ 38,053,639 34,926,581 6,443,218 132,416,845 11.44% 1,430 1.01%
2012 46,743,675 ‐ 36,891,722 32,492,802 5,538,929 121,667,128 9.27% 1,296 1.15%
2013 46,103,944 ‐ 35,692,283 31,208,819 4,660,282 117,665,328 8.70% 1,232 1.12%
2014 41,882,832 ‐ 34,639,998 28,677,301 3,951,670 109,151,801 7.30%1,124 1.11%
2015 37,399,331 ‐ 33,340,737 27,175,783 3,248,163 101,164,014 6.34% 1,027 0.96%
2016 32,867,371 ‐ 32,220,614 25,547,511 2,639,258 93,274,754 5.62% 921 0.67%
2017 29,093,663 ‐ 31,052,617 24,919,359 2,244,083 87,309,722 4.78% 850 0.58%
2018 24,705,089 ‐ 29,845,813 22,740,572 1,898,266 79,189,740 N/A 761 0.47%
Source : City of Renton Finance Division
1 The percentage of Personal Income column is based on personal income of King County. (See Table 20). Renton data is not available.
2 Other GO debt includes debt issued by related entities that are backed by the City's full faith and credit as well as intergovernmental loans and capital leases.
Prior years have been updated to reflect the Capital Lease agreement that started in 2014.
$‐
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General Obligation (Governmental)Other Long Term (Governmental)Revenue (Business‐Type)Other Long Term (Business‐Type)
2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-20
TABLE 15LEGAL DEBT MARGIN INFORMATIONLAST TEN FISCAL YEARS2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 LEGAL DEBT MARGIN CALCULATION Taxable Assessed value 13,233,244,780$ 11,884,728,440$ 11,480,466,361$ 10,815,458,517$ 10,588,721,199$ 11,332,326,913$ 12,936,757,619$ 13,812,773,159$ 15,106,038,959$ 16,909,050,051$ Total Taxable Assessed Value 13,233,244,780 11,884,728,440 11,480,466,361 10,815,458,517 10,588,721,199 11,332,326,913 12,936,757,619 13,812,773,159 15,106,038,959 16,909,050,051 Debt limit 1.5% of General purpose limit, non‐voted 198,498,672 178,270,927 172,206,995 162,231,878 158,830,818 169,984,904 194,051,364 207,191,597 226,590,584 253,635,751 1.0% General purpose limit, voted 132,332,448 118,847,284 114,804,664 108,154,585 105,887,212 113,323,269 129,367,576 138,127,732 151,060,390 169,090,501 2.5% General purpose combined limit 330,831,120 297,118,211 287,011,659 270,386,463 264,718,030 283,308,173 323,418,940 345,319,329 377,650,974 422,726,251 2.5% Utility purpose limit, voted 330,831,120 297,118,211 287,011,659 270,386,463 264,718,030 283,308,173 323,418,940 345,319,329 377,650,974 422,726,251 2.5% Open space, park facilities, voted 330,831,120 297,118,211 287,011,659 270,386,463 264,718,030 283,308,173 323,418,940 345,319,329 377,650,974 422,726,251 Total debt limit 992,493,359 891,354,633 861,034,977 811,159,389 794,154,090 849,924,518 970,256,821 1,035,957,987 1,132,952,922 1,268,178,754 Debt applicable to limitGeneral obligation bonds39,039,834 36,990,612 52,993,407 46,743,675 46,103,944 41,882,832 37,399,331 32,867,371 29,093,663 24,705,089 Other long term debt38,973,547 38,511,875 38,053,639 36,891,722 35,692,283 34,639,998 33,340,737 32,220,614 31,052,617 29,845,813 Total Debt 78,013,381 75,502,487 91,047,046 83,635,397 81,796,227 76,522,830 70,740,068 65,087,985 60,146,280 54,550,902 Less: Amount set aside for repayment of general obligation debt and contracts payable(367,652) (1,009,555) (1,032,360) (1,160,000) (1,279,231) (1,639,891) (2,368,177) (2,428,018) (2,359,933) (2,787,931) Total net debt applicable to limit 77,645,729 74,492,932 90,014,686 82,475,397 80,516,996 74,882,939 68,371,891 62,659,967 57,786,347 51,762,971 Legal debt margin 914,847,630$ 816,861,701$ 771,020,291$ 728,683,991$ 713,637,094$ 775,041,580$ 901,884,931$ 973,298,020$ 1,075,166,575$ 1,216,415,783$ Percentage of net debt to debt limit7.82%8.36%10.45%10.17%10.14%8.81%7.05%6.05%5.10%4.08%Source : City of Renton Finance DivisionState law provides that debt cannot be incurred in excess of the following percentages of the value of the taxable property of the City: 1.5 percent without a vote of the people; 2.5 percent with a vote of the people5.0 percent with a vote of the people, provided the indebtedness in excess of 2.5 percent is for utilities; and 7.5 percent with a vote of the people provided the indebtedness in excess of 5.0 percent is for open space development and parks facilities2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-21
% OF GEN BONDED2
GENERAL 1 DEBT TO
FISCAL BONDED ASSESSED
2 ASSESSED PER3
YEAR DEBT VALUE VALUE CAPITA
2009 78,013,381 13,233,244,780 0.59%933
2010 75,502,487 11,884,728,440 0.64%830
2011 91,047,046 11,480,466,361 0.79%983
2012 83,635,397 10,815,458,517 0.77%891
2013 81,796,227 10,588,721,199 0.77%856
2014 76,522,830 11,332,326,913 0.68%788
2015 70,740,068 12,936,757,619 0.55%718
2016 65,087,985 13,812,773,159 0.47%643
2017 60,146,280 15,106,038,959 0.40%586
2018 54,550,902 16,909,050,051 0.32%524
Source:
1 City of Renton Finance Division
2 King County Department of Assessments
3 Population Data can be found in Table 19
TABLE 16
RATIOS OF GENERAL BONDED DEBT OUSTANDING TO ASSESSED VALUE
LAST TEN FISCAL YEARS
$‐
200
400
600
800
1,000
1,200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-22
Utilities
GOVERNMENTAL UNIT
Debt
Outstanding1
Estimated Percent
Applicable2
Estimated Share of
overlapping debt
City of Renton Direct Debt 54,550,902$ 100% 54,550,902$
City of Renton Overlapping Debt 4
King County 3 652,024,000 3.16% 20,603,958
Port of Seattle 362,390,000 3.16% 11,451,524
Renton School District #403 244,080,000 69.17%168,842,163
Issaquah School District #411 649,000,000 2.22%14,427,156
Kent School District #415 229,341,000 1.56%3,587,810
Fire District 10‐1 3,535,000 0.33%11,517
Fire District 40‐1 2,140,000 42.72%914,291
King County Library 79,175,000 1.07%847,173
City of Renton Overlapping Debt 220,685,593
Total Direct and Overlapping Debt 275,236,495$
Sources:
2 King County Department of Assessments
TABLE 17
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
1 King County Department of Executive Services
⁴ Overlapping percentages are determined by checking within the levy codes of the reporting district to see which taxing districts overlap
with that reporting district. For example, within levy code 2100, the Renton School District and the King County Library district overlap with
the city and both have debt. Since they both have debt and they overlap with the City, those two districts are reported and the value within
that levy code is reported as overlapping with the school and library districts.
3 King County's gross outstanding debt excludes available cash in debt service funds, proprietary‐type debt, debt financed from component
unit, credit enhanced program.
Renton
20%
King County
7%
Schools
68%
Port of Seattle
4%
Others
1%
2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-23
TABLE 18
PLEDGED‐REVENUE COVERAGE
LAST TEN FISCAL YEARS
Ratio
Fiscal
Year Revenue
1
Expenses without
Taxes/
Depreciation
Net Revenue
Available for
Debt Service Principal Interest Coverage
2
2009 32,853,359 24,341,586 8,511,773 2,794,290 1,832,449 1.84
2010 33,885,499 25,546,607 8,338,892 2,859,290 1,693,010 1.83
2011 40,538,269 25,424,551 15,113,718 2,934,290 1,673,045 3.28
2012 44,534,579 27,225,957 17,308,622 3,379,290 1,577,350 3.49
2013 45,849,249 27,538,433 18,310,816 2,168,648 1,292,497 5.29
2014 48,247,542 29,685,885 18,561,657 3,253,612 1,243,751 4.13
2015 50,143,096 30,737,021 19,406,075 2,218,509 1,124,534 5.80
2016 50,614,218 39,147,449 11,466,769 2,348,901 887,754 3.54
2017 53,140,049 35,056,056 18,083,993 2,165,175 669,440 6.38
2018 54,486,431 35,196,065 19,290,366 2,473,986 556,599 6.37
Source: City of Renton Finance Division
1 Revenue includes operating revenue, interest revenue, and other non‐operating revenue, net of utility taxes.
2 Bond financing requirements are that the average annual coverage is at least 1.25 times the annual debt service for Water and Sewer revenue
bonds.
Revenue Debt Service
1.84
1.83
3.28 3.49 5.29
4.13
5.80
3.54 6.38 6.37
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Waterworks Net Revenue available for debt service Debt Service Coverage
2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-24
PER CAPITA
PERSONAL PERSONAL SCHOOL
POPULATION INCOME INCOME ENROLLMENT 5 RATE 6
FISCAL MEDIAN RENTON SCHOOL
YEAR KING COUNTY 2 RENTON 1 KING COUNTY 2 KING COUNTY 3 AGE 4 DISTRICT KING COUNTY RENTON
2009 1,912,012 83,650 106,247,964,000 55,512 37.08 13,977 8.0% 8.6%
2010 1,937,378 90,927 107,552,067,000 56,098 37.24 13,600 9.1% 7.7%
2011 1,972,205 92,590 115,758,427,000 59,371 37.40 14,440 8.0% 6.8%
2012 2,009,295 93,910 131,263,349,000 66,043 37.72 14,590 6.4% 6.0%
2013 2,047,039 95,540 135,176,058,000 66,692 37.70 14,783 5.0% 4.7%
2014 2,081,249 97,130 149,434,812,000 72,696 37.74 15,080 4.6% 4.2%
2015 2,117,696 98,470 159,665,109,000 76,226 37.26 15,241 4.6% 4.3%
2016 2,155,962 101,300 166,006,277,000 79,323 37.20 15,319 3.4% 3.2%
2017 2,188,649 102,700 182,495,475,000 83,383 35.00 15,334 3.6% 3.8%
2018 * 104,100 * * 35.00 15,414 3.5% 3.7%
Sources:
1 Washington State Office of Financial Management ‐ prior year data updated to reflect actuals where adjusted
2 U.S. Bureau of Economic Analysis. Data shown is for King County. Specific data for the City of Renton is not available.
3 U.S. Bureau of Economic Analysis. Data shown is for King County. Specific data for the City of Renton is not available.
4 Washington State Office of Financial Management
5 Enrollment is based on entire Renton School District, which includes schools located outside city boundaries but excludes schools of Kent
and Issaquah school districts located within Renton city limits.
6 US Bureau of Labor Statistics; annual rates, not seasonally adjusted, 2010‐2014 are provisional and subject to change
* Data not available at time of publication
TABLE 19
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
UNEMPLOYMENT
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
King County Unemployment Rate City of Renton Unemployment Rate
2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-25
EMPLOYER EMPLOYEES RANK CITY EMPLOYEES RANK CITY
BOEING COMPANY 14,766 1 22.30% 13,169 1 30.30%
VALLEY MEDICAL CENTER 3,362 2 5.08%1,877 2 4.32%
RENTON SCHOOL DISTRICT 1,833 3 2.77%1,448 3 3.33%
PROVIDENCE WA REGIONAL SERVICES 1,726 4 2.61%815 7 1.88%
PACCAR INC*1,189 5 1.80%714 8 1.64%
CITY OF RENTON 996 6 1.50%819 6 1.88%
KAISER PERMANENTE (FORMERLY GROUP HEALTH)* 984 7 1.49%
FRED MEYER STORES*830 8 1.25%
KING COUNTY 694 9 1.05%
WIZARDS OF THE COAST 559 10 0.84%
DOT ‐ FEDERAL AVIATION ADMINISTRATION 1,400 4 3.22%
RENTON TECHNICAL COLLEGE 858 5 1.97%
ER SOLUTIONS 521 9 1.20%
WAL MART STORES INC 322 10 0.74%
Total Principal Employers 26,939 40.69%21,943 50.49%
Total All Other Employers 39,269 59.31%21,514 49.51%
Total Employees working within Renton 66,208 100.00%43,457 100.00%
Sources:
Employee and Employer Data, Business License Data, City of Renton (2009)
Total Employees Working in Renton, PSRC (2009, 2018)
TABLE 20
PRINCIPAL EMPLOYERS
2018 2009
* Employee data gathered using the perentage increase in total employees from 2017 to 2018 and applying a multiplier to 2017
numbers.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-26
TABLE 21
FULL TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
20092 20103 2011 2012
4 2013 2014 2015 2016
5 2017 2018
FUNCTION
General Government 163.8 143.3 143.5 147.3 135.4 135.4 139.4 151.0 156.0 161.0
Public Safety
Police
Commissioned Officers 121.0 123.0 123.0 123.0 123.0 121.5 119.0 124.0 129.0 129.0
Non‐Commissioned Officers 46.4 44.4 28.4 28.4 28.4 28.4 29.4 30.4 32.9 32.9
Fire
Commissioned Officers 137.0 136.0 145.0 145.0 145.0 140.0 145.0 0.0 0.0 0.0
Non‐Commissioned Officers 18.0 16.0 16.0 16.0 16.0 16.0 16.0 0.0 0.0 0.0
Public Works
Administration 3.5 3.0 3.0 3.0 3.0 3.0 3.0 2.0 2.0 2.0
Transportation Systems 37.0 33.0 33.0 33.0 33.0 31.0 31.0 33.5 38.5 37.5
Utility Systems 37.7 29.5 29.5 25.5 25.5 23.5 23.5 25.5 27.5 27.5
Maintenance Services 83.0 78.0 78.0 80.0 80.0 80.0 82.0 82.0 87.0 88.0
Culture and Recreation
Parks/Recreation/Facilities/Human Svs 86.3 81.8 82.8 83.6 83.6 80.0 80.0 83.0 83.0 82.8
Library 15.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Museum 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Golf Course 9.5 9.5 9.5 9.5 9.5 9.5 9.5 9.5 10.5 9.8
Total 759.2 698.5 692.7 695.2 683.4 669.3 678.8 541.9 567.4 571.4
Source: City of Renton Finance Division
1 In 2008, Development Services moved from Public Works to Community and Economic Develoment which is listed under General Government.
2 In 2009, increase in Administrative, Judicial & Legal Services includes moving Legal Services in‐house and creation of a Communications Division which was
a reorganization of staffing from the Finance and Information Services Department and the Mayors Office
3 Operations of the Renton libraries transferred to King County Library System (KCLS) in 2010 as a result of voter‐approved annexation
4 Farmers's Market Program was moved from Community and Economic Department to Community Services Department in 2012.
5 City of Renton Fire transferred to the Renton Regional Fire Authority on July 1, 2016.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-27
TABLE 22
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
FUNCTION
Public Safety
Police
Physical arrests 3,748 3,464 2,810 1,968 1,725 1,515 1,653 1,492 2,099 2,373
Parking violations 6,795 4,748 4,757 4,855 4,799 4,049 4,464 4,664 4,992 5,114
Traffic violations 14,220 13,829 8,805 7,943 8,388 5,925 4,828 5,152 4,576 5,970
Photo Enorcement Violations 1 27,509 21,157 21,301 22,036 15,733 21,015 25,562 23,208 25,257 48,281
Infractions non traffic 314 240 446 16 210 149 125 53 43 55
Criminal non trafic 1,739 1,623 1,687 1,279 1,346 1,522 1,466 1,351 1,430 1,687
Fire2
Number of calls answered 12,840 13,045 12,752 13,667 13,848 14,337 14,945 ‐ ‐ ‐
Inspections 2,968 2,620 2,300 1,807 689 997 2,517 ‐ ‐ ‐
Transportation
Street resurfacing (miles)3.08 2.65 2.07 2.19 0.84 2.82 1.67 0.44 2.78 1.07
Aircraft Operations 83,269 80,679 80,005 93,406 93,911 100,544 112,335 118,568 131,702 145,811
Physical/Economic Environment
Building Permits Received 3,450 3,646 3,642 3,912 4,237 4,287 4,898 4,830 4,404 5,009
Building Permits Issued 3,336 3,562 3,555 3,765 4,038 4,204 4,691 4,661 4,092 4,732
Public Works Permits Received 1,254 1,182 1,334 1,337 1,488 1,526 1,472 1,468 1,270 1,450
Public Works Permits Issued 1,205 1,162 1,245 1,328 1,411 1,493 1,359 1,437 1,093 1,214
Solid Waste Utility
Recyclables collected (tons/yr)9,653 9,836 12,565 13,509 13,616 13,993 15,218 17,846 12,331 14,075
Culture and Recreation
Athletic field attendance 93,000 93,000 93,000 94,000 94,000 94,000 93,000 94,000 56,000 65,897
Community Center admissions 3 107,759 108,896 105,458 98,022 102,525 102,308 102,312 98,282 92,026 85,762
Rounds of Golf 60,300 55,450 54,350 58,680 56,180 55,600 56,775 51,546 47,462 48,734
2 The Renton Regional Fire Authority formed July 1, 2016 replacing the City of Renton Fire Department.
3 Community Center admissions were updated through 2018 using CLASS reports for registered participants, membership pass scans, and drop ins.
Source: City of Renton
1 Photo Enforcement began in 2008.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-28
TABLE 23UTILITY SYSTEMS SUPPLEMENTAL OPERATING INFORMATIONLAST TEN FISCAL YEARS 12009 2010 2011 2012 2013 2014 2015 2016 2017 2018City Population83,650 90,927 92,590 93,910 95,540 97,130 98,470 101,300102,700104,100Water SystemService Area Population‐‐ ‐‐ ‐‐ ‐‐62,100 60,000 67,125 67,000 68,666 72,164Number of Connections:Single Family13,500 13,59413,739 13,876 13,942 13,76414,083 14,162 14,190 14,223Multi‐Family, Commercial, Industrial2,555 2,559 2,591 2,542 2,542 2,715 2,541 2,578 2,557 2,592Irrigation704714721733734726738756755766Fire Service576604624645652652663682682690Other 2665553605911674816788Total Connections17,401 17,526 17,728 17,856 17,929 17,973 18,099 18,259 18,251 18,359Water Production/Consumption (in hundreds of cubic feet ‐ ccf)(in hundreds of cubic feet ‐ ccf)Purchased0 27,282 88,645 51,087 43,815 47,77454,951 43,009 56,667 57,192Production 3,701,0403,293,5863,244,6283,172,169 3,197,643 3,306,1943,512,789 3,410,6483,490,563 3,524,353Consumption 3,069,0202,827,935 2,899,443 2,955,531 2,937,989 2,938,282 3,094,1143,028,1743,146,552 3,205,135Non‐revenue 632,020492,933 433,830267,725 303,469 415,686473,626425,483 400,678 376,410Consumption (thousands of gallons)Average Daily7,585 6,750 6,650 6,483 6,553 6,775 7,199 6,971 7,154 7,223Peak Daily14,81412,826 12,476 11,445 12,361 12,411 13,590 12,751 13,098 12,335Sewer SystemService Area Population‐‐‐‐‐‐‐‐‐‐80,780 81,759 83,850 86,982 87,402Number of Connections:Single Family14,121 14,452 14,675 14,953 15,183 15,15415,173 15,38415,507 15,652Multi‐Family, Commercial, Industrial, Other2,453 2,451 2,457 2,453 2,450 2,708 2,713 2,704 2,714 2,727Out of City Connections1249410812132180233242264279Total Connections16,698 16,997 17,240 17,418 17,765 18,042 18,119 18,330 18,485 18,658Storm Drainages SystemService Area Population‐‐‐‐‐‐‐‐‐‐97,130 98,470 101,300102,700104,100Number of Connections:Single Family20,329 20,747 20,980 21,521 21,756 21,893 22,125 22,352 22,455 22,587Multi‐Family, Commercial, Industrial, Other1,873 1,813 1,847 1,761 1,738 1,728 1,732 1,744 1,750 1,755Total Connections22,202 22,560 22,827 23,282 23,49423,621 23,857 24,096 24,205 24,342Solid Waste 3Service Area Population‐‐‐‐‐‐‐‐‐‐‐‐Number of Connections:Single Family16,385 16,350 16,688 16,927 16,958 17,000 17,15417,129 16,926 23,577Multi‐Family, Commercial, Industrial, Other1,665 1,612 1,581 1,569 1,535 1,533 1,589 1,586 1,554 1,759Total Connections18,050 17,962 18,269 18,496 18,493 18,533 18,743 18,715 18,480 25,3361 Data for prior years provided where available.2 Includes wholesale water provided to the Skyway Water and Sewer District througha single metered connection.3 2018 numbers are sourced from the Republic Services Annual Report as the City of Renton no longer handles the billing for Solid Waste.2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-29
TABLE 24
CAPITAL ASSETS STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
FUNCTION
Public safety
Police Stations 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Police Patrol Districts 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0
Fire stations1 6.0 6.0 6.0 6.0 6.0 6.0 6.0 ‐‐‐
Transportation
Street (miles)263.8 264.5 266.1 266.1 266.1 294.0 304.1 315.5 311.0 311.0
Streetlights 3,864 3,935 4,015 4,172 4,182 4,302 4,342 4,720 4,878 5,120
Culture and recreation
Parks acreage 1,183.0 1,183.0 1,205.8 1,210.6 1,213.8 1,227.0 1,239.5 1,240.4 1,245.5 1,245.5
Parks 30.0 30.0 32.0 32 32 32.0 32.0 32.0 32.0 32.0
Swimming pools 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Tennis courts 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0
Community centers4 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
Waterworks Utility
Water mains (miles) 305.0 305.0 305.0 306.0 308.0 304.6 307.5 311.0 313.0 314.0
Fire hydrants 3,624 3,651 3,639 3,655 3,670 3,697 3,740 3,769 3,777 3,811
Sanitary sewers (miles) 216.4 217.7 219.3 219.9 223.4 225.9 231.2 232.1 233.9 234.6
Storm sewers (miles) 273.8 274.9 276.1 278.5 282.0 267.7 265.6 276.6 278.0 279.9
1 City of Renton Fire and ES Services employees transferred to the Renton Regional Fire Authority on July 1, 2016.
Source: City of Renton Departments
2 Includes Natural Area acreage, and developed/undeveloped park acreage for Neighborhood Parks, Community Parks, Regional Parks, Special Use Parks
and Corridors.
3 Developed Neighborhood, Community, Regional and Special Use Parks only. Two new parks were part of Benson Hill Annexation not previously
accounted for – Parkwood South Div #3 and SE 186th Place Properties.
4Community centers includes the Renton Community Center, the Renton Senior Activity Center, and two neighborhood centers that are regularly
programmed.
2018 Comprehensive Annual Financial Report City of Renton, Washington
Statistical Section, 7-30
Renton City Hall
1055 South Grady Way
Renton, WA 98057
rentonwa.gov