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Printed by Print & Mail Services, City of Renton
Cover photo by Denis Law
CITY OF RENTON
2011
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For Year Ended December 31, 2011
Iwen Wang, Administrator
Jamie Thomas, Fiscal Services Director
Administrative Services Department
City of Renton
1055 South Grady Way
Renton, Washington 98057
(425) 430-6858
Website: www.rentonwa.gov
TABLE OF CONTENTS
DECEMBER 31, 2011
ITEM
PAGE
INTRODUCTORY SECTION
Letterof Transmittal.....................................................................................................................................1-1
2010 Comprehensive Annual Financial Report Award.................................................................................1-8
Corporate Organization Structure & Reporting Relations............................................................................1-9
FINANCIAL SECTION
Independent Auditor's Report.................................................................................................................... 2-1
Management Discussion and Analysis........................................................................................................3-1
Basic Financial Statements:
Government -wide Financial Statements:
Statementof Net Assets........................................................................................................................4-1
Statementof Activities...........................................................................................................................4-2
Fund Statements
Government Fund Financial Statements:
BalanceSheet..................................................................................................................................4-4
Reconciliation of Balance Sheet to the Statement of Net Assets...................................................4-6
Statement of Revenues, Expenditures and Changes in Fund Balances...........................................4-7
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Government Funds to the Statement of Activities........................................4-8
Proprietary Fund Financial Statements:
Statementof Net Assets..................................................................................................................4-9
Statement of Revenues, Expenses, and Changes in Fund Balances..............................................4-11
Statementof Cash Flows...............................................................................................................4-12
Fiduciary Fund Statements:
Statement of Fiduciary Net Assets................................................................................................4-14
Statement of Changes in Fiduciary Net Assets..............................................................................4-15
Notes to Financial Statements:
Note 1: Significant Accounting Policies...........................................................................................4-16
Note 2: Compliance and Accountability..........................................................................................4-26
Note 3: Deposits and Investments..................................................................................................4-28
Note4: Property Taxes....................................................................................................................4-31
Note 5: Capital Assets and Depreciation.........................................................................................4-32
Note6: Pensions..............................................................................................................................4-37
Note 7: Other Post Employment Benefits.......................................................................................4-48
Note8: Contingencies.....................................................................................................................4-50
Note9: Risk Management...............................................................................................................4-51
Note 10: Interfund Transactions.......................................................................................................4-54
Note11: Net Assets...........................................................................................................................4-57
Note 12: Prior Period Adjustments...................................................................................................4-58
Note13: Long Term Debt..................................................................................................................4-58
Note 14: Deferred Charges in Proprietary Funds..............................................................................4-63
Note15: Segment Information..........................................................................................................4-63
Note16: Joint Ventures.....................................................................................................................4-64
Note17: Subsequent Events.............................................................................................................4-66
Required Supplementary Information Other than MD&A
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget to Actual
GeneralFund..........................................................................................................................................5-1
TABLE OF CONTENTS
DECEMBER 31, 2011
ITEM
PAGE
Actuarial Valuation of Firefighters' Pension Fund.................................................................................5-2
LEOFF I Retiree Medical Benefits - Schedule of Funding Progress........................................................
... 5-3
Combining Statements
Net Assets by Component....................................................................................................7-2
Non -Major Fund Descriptions................................................................................................................6-1
Table 2:
CombiningBalance Sheet......................................................................................................................6-5
Combining Statement of Revenues, Expenditures and Changes in Fund Balances.............................6-11
Fund Balance of Government Funds....................................................................................7-5
Schedule of Revenues, Expenditures and Changes in Fund Balances
Table 4:
Budgetto Actual..................................................................................................................................6-17
Combining Statement of Net Assets, Non -Major Enterprise Funds....................................................6-30
General Government Tax Revenue by Source......................................................................7-7
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets,
Revenue Capacity:
Non -Major Enterprise Funds.........................................................................................................6-32
Table 6:
Statement of Cash Flows, Non -Major Enterprise Funds......................................................................6-33
Combining Statement of Net Assets, Internal Service Funds..............................................................6-35
Assessed Value Taxable Property.........................................................................................7-9
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets,
Table 8:
Internal Service Funds...................................................................................................................6-37
Combining Statement of Cash Flows, Internal Service Funds..............................................................6-38
Property Tax Levies and Collections...................................................................................7-11
Statement of Changes in Assets and Liabilities Agency Fund — Special Deposit..................................6-40
Table 10:
STATISTICAL SECTION
Statistical Section Description................................................................................................................7-1
Financial Trends:
Table 1:
Net Assets by Component....................................................................................................7-2
Table 2:
Changes in Net Assets...........................................................................................................7-3
Table 3:
Fund Balance of Government Funds....................................................................................7-5
Table 4:
Changes in Fund Balances of Government Funds................................................................7-6
Table 5:
General Government Tax Revenue by Source......................................................................7-7
Revenue Capacity:
Table 6:
Principal Property Tax Payers...............................................................................................7-8
Table 7:
Assessed Value Taxable Property.........................................................................................7-9
Table 8:
Property Tax Rates Direct and Overlapping Governments................................................7-10
Table 9:
Property Tax Levies and Collections...................................................................................7-11
Table 10:
Sales Tax Collections by Sector...........................................................................................7-12
Debt Capacity:
Table 11:
Ratios of Outstanding Debt by Type...................................................................................7-13
Table 12:
Legal Debt Margin Information..........................................................................................7-14
Table 13:
Ratios of General Bonded Debt Outstanding.....................................................................7-15
Table 14:
Direct and Overlapping Governmental Activities Debt......................................................7-16
Table 15:
Pledged -Revenue Coverage for Water and Sewer and Golf Course Revenue Bonds ........7-17
Demographic and Economic Information:
Table 16:
Demographic and Economic Statistics................................................................................7-19
Table17:
Principal Employers............................................................................................................7-20
Operating Information:
Table 18:
Full Time Equivalent City Government Employees by Function.........................................7-21
Table 19:
Operating Indicators by Function.......................................................................................7-22
Table 20:
Capital Assets Statistics by Function...................................................................................7-23
iv
City of t
� ht(t)n
June 30, 2012
Honorable Denis Law, Mayor
Members of the Renton City Council
Residents of Renton
City of Renton, Washington
RE: THE 2011 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Dear Mayor Law, City Councilmembers, and Residents of Renton:
We are pleased to present the City's Comprehensive Annual Financial Report for the year
ended December 31, 2011. We publish this financial statement in conformity with generally
accepted accounting principles (GAAP). It has been audited in accordance with generally
accepted auditing standards by the Washington State Auditor's Office.
The report includes our own representations concerning the finances of the City of Renton.
Consequently, we assume full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these
representations, we have established a comprehensive internal control framework that is
designed both to protect the City of Renton's assets from loss, theft, or misuse and to maintain
sufficient reliable information for the preparation of the City's financial statements in
conformity with GAAP. Because the cost of internal controls should not outweigh the benefits,
the City's comprehensive framework of internal controls is designed to provide reasonable,
rather than absolute, assurance that the financial statements will be free from material
misstatement. As management, we attest that to the best of our knowledge and belief that this
financial report is complete and reliable in all material aspects.
These financial statements have been audited by the Washington State Auditor's Office. The
goal of this independent audit was to provide reasonable assurance that the City's financial
statements for the fiscal year ended December 31, 2011, are free of material misstatements.
The independent audit involved examining, on a test basis, evidence supporting the amounts
and disclosures in our financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial statement
presentation. Based upon the audit, the independent auditor concluded that there was a
reasonable basis for issuing an unqualified opinion that the City of Renton's financial
statements for the fiscal year ended December 31, 2011, are fairly presented in conformity with
Introduction, 1-1
2011 Comprehensive Annual Financial Report City of Renton, Washington
GAAP. The State Auditor's report is included as the first component of the financial section of
this report.
The independent audit of the City of Renton's financial statements is part of a broader,
federally mandated "Single Audit" designed to meet the special needs of federal grantor
agencies. The standards governing Single Audit engagements require the independent auditor
to report not only on the fair presentation of the financial statements, but also the City's
internal controls and compliance to legal requirements with special emphasis on internal
controls and legal requirements involving the administration of federal grant programs.
The City's Single Audit Report is issued separately and is available upon request or directly from
the Washington State Auditor. Another State mandate requires the Washington State Auditor's
Office to perform additional tests of compliance with State laws and regulations as required by
RCW 43.09.260. This statute requires the State Auditor to inquire as to whether the City
complied with the laws and the Constitution of the State of Washington, its own ordinances
and orders, and the requirements of the State Auditor's Office. The City's State compliance
report is also available upon request from the Washington State Auditor.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of the Management's Discussion and
Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should
be read in conjunction with it. The City's MD&A can be found immediately following the
independent auditor's report.
THE CITY OF RENTON AND ITS SERVICES
The City of Renton was incorporated on September 6, 1901. Located at the south end of Lake
Washington, our city borders the City of Seattle to the north. We currently have a land area of
23.79 square miles. We have over 1,183 acres of parks that includes 30 active parks. As
presented by the Washington State Office of Financial Management, our 2011 estimated
population was 92,590.
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 and implement the policies established by the seven -member City Council.
The Council establishes policies, appropriates monies through the budget process and adopts
local laws through ordinances. Each Councilmember serves a four-year term and they are
elected on a staggered two-year cycle. Both the Council and the Mayor are elected on a non-
partisan basis.
The City is a general-purpose governmental entity and provides the full range of municipal
services allowed by statute or charter. These services include police, fire, emergency medical,
street construction and maintenance, planning and zoning, libraries, parks and recreation,
municipal court, and general administrative services.
Introduction, 1-2
2011 Comprehensive Annual Financial Report City of Renton, Washington
The City operates four utilities: water, sewer, surface water, and solid waste. 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 rights and does not purchase water from outside sources. 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.
The City also operates a golf course. All costs of the Maplewood Golf Course are paid from
green fees, driving range fees, revenue from the restaurant vendor, and other miscellaneous
revenue. The golf course has short-term operational costs, an active capital maintenance
program, and annual debt service payments for the construction of the clubhouse and the
driving range.
One operation the City has, which is somewhat unusual for cities our size, is its airport. The
Renton Municipal Airport is used by small private plane operators, a floatplane tourist
company, and Boeing initiates its maiden 737 flights from this airport. The operational costs of
the airport are paid from rental fees. Much of the major capital projects are paid by fees or
with Federal Aviation Administration grants.
The City of Renton complies with the Budgeting, Accounting, and Reporting System (BARS) as
delineated by the Office of the State Auditor as authorized under RCW 43.09.200 and
43.09.230. State law also mandates timely submission of annual financial reports to the State
Auditor for annual independent audits. The City of Renton's financial system incorporates
financial and administrative controls to ensure the safeguarding of assets and reliability of
financial reports. These controls are designed to provide reasonable assurance that
transactions are executed in accordance with management authorization and are recorded in
conformity with GAAP. They also provide accountability of and control over assets and
obligations, and sufficient reporting and review exist to provide adequate information for
analysis and comparability of data.
The City of Renton maintains budgetary controls to ensure compliance with legal provisions
embodied in the annual budget. All activities are appropriated through the annual budget
process and published in the City's Annual 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 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.
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is a perspective of past activities that
influence the City's financial condition. The following information is presented to place that
information in context with the general economy.
Introduction, 1-3
2011 Comprehensive Annual Financial Report City of Renton, Washington
Economic Condition and Outlook
From the City of Renton's most recent economic forecast:
With real GDP growth of 2.8 percent in the fourth quarter of last year, the U.S. economy has
now expanded ten consecutive quarters. Recently, job growth appears to have picked up
meaningfully. Yet the consensus view is cautionary, citing previous job spurts that have proved
temporary, falling home prices, weak wage gains, and slowing global growth. The outcome is
continued, but subpar, U.S. growth, at least through 2013. The Puget Sound economy suffered
a greater relative employment loss than the U.S. economy during the recession, but is now
growing slightly faster. Including the indirect effects, expansion in Boeing payrolls over the last
eighteen months accounts for about one-half the total gain of 21,000 jobs. Job growth in the 1
-2 percent range is expected. Burgeoning 737 orders, higher production rates, and rising
Boeing employment will lift the Renton economy over the forecast period. Employment and
population growth rates are expected to beat comparable regional rates. Taxable retail sales
growth will exceed 5 percent.
Recessions early in the last decade and again late in the decade robbed the region and some of
its sub -areas of virtually the entire net increase in jobs. Overall Puget Sound employment in
2010 was within 2,000 jobs (0.1 percent) of the level in 2000. This unenviable trend, however,
has now started to reverse with Renton fully participating. Measured by employment (based on
City business license records), the Renton economy outperformed the rest of the region in
2011. In addition to faster job creation, the increase in jobs lifted total empOloyement 3.8
percent above the level in 2000, only the third time in the last eleven years that employment
has climbed above the earlier benchmark.
The Renton economy, like the U.S. and Puget Sound economies, is expected to post better
results for the current decade, building on last year's growth. Both orders and deliveries for
737 airplanes are expected to rise, population and housing activity will climb, and taxable retail
sales will advance.
Combining the forecasts for Boeing and non -Boeing jobs, total Renton employment is expected
to rise 4.3 percent this year, slow to 1.7 percent in 2013, and average 1.4 percent growth
annually from 2014 to 2016. This sustained job growth in the first half of the decade will mark
an end to the fiver -year cycle of alternating periods of contraction and expansion in Renton
employment dating from the early 1990's.
Growth in Renton population can be forecast from growth in regional population and Renton
housing permits relative to regional housing permits, and similarly, that Renton housing permits
are dependent on regional housing permits and population growth in Renton relative to the
region. Using the latest regional forecast for population and housing permits, this approach
yields a steady population growth rate in Renton of 2.2 percent (excluding annexations)
throughout the forecast period along with slow recovery in housing permits — from a low of 307
units last year to 330 units in 2012, 377 in 2013, and an average of 450 units per year from 2014
to 2016.
Introduction, 1-4
2011 Comprehensive Annual Financial Report City of Renton, Washington
Total taxable retail sales in Renton in 2011, however bucked the improving trend, slipping .8
percent. This is due entirely to continued steep decline in the construction sector (down 33.8
percent in the first three quarters compared to the year-earlier period), and in particular to a
drop in heavy construction (off 85.7 percent). If taxable sales in the construction sector in
Renton had matched the regional pace (-8.6 percent) last year, then total taxable sales would
have climbed 2.7 percent, faster than the overall regional pace.
The outlook for most of the key drivers of retail spending is expected to improve over the
forecast period for the Puget Sound economy. Personal income is expected rise 5.1 percent
this year, but only 3.9 percent in 2013 as the payroll tax cut is rescinded. Faster income growth
between 2014 and 2016, a significant pickup in housing permits, and a drop in the
unemployment rate will all support healthy growth in taxable retail sales. Higher interest rates,
which primarily affect sales of durable goods, are the only negative.
UPDATE FROM 2011-2012 BUDGET ADJUSTMENT DOCUMENT
The 2011-2012 adopted budget is the first biennial budget for the City of Renton. After the
mid -biennial budget adjustment, total adopted revenue is $487 million against total
expenditures of $532 million. The adjusted revenue shows an increase of 6.9% from the
combined 2009-2010 adopted budget level and the expenditures reflect an increase of 14.9%
from the adopted 2009-2010 budgeted expenditures.
General Government Revenue
The amended revenue projection for 2012 is $103 million. This is an overall decrease of 8%
from the adopted 2011 revenue or a 7% decrease over the 2011 year-end actual.
This budget anticipates that property tax collections will be $33 million in 2012. This is 2.3%
growth from 2011 actual amounts. The growth rate for 2012 is due to higher new construction
activity not captured in 2011 valuation, using approximately 1% of "banked capacity" from
2010, plus the allowed 1% revenue growth limit. The City has reached its tax rate limit of $3.10
per $1,000 assessed valuation in 2012.
We are projecting modest growth in some of our more volatile revenue sources. Sales tax is
projected to grow 2.3% over 2011 year-end actual, development permit and plan review fees
are expected to increase 3% in 2012, and a 1.5% annual employment growth for business
license fees. We projected a 10% decrease in Real Estate Excise Tax in 2011, and a similar 10%
increase in 2012, reflecting an improving economy.
As mentioned previously, the adopted budget assumes both Initiatives 1100 and 1105 would
pass, resulting in a loss of $200k in state distributed liquor profits in 2011 and $1 million in both
profits and excise tax in 2012.
General Government Expenditures
As we informed the Council at the second quarter financial update in September 2010, the
preliminary biennial budget projection was over $2 million out of balance.
Introduction, 1-5
2011 Comprehensive Annual Financial Report City of Renton, Washington
The higher than anticipated new construction property tax helped to narrowed the gap slightly,
but cuts were still necessary to bridge the nearly $2 million gap.
Given prior reductions the additional $2 million reduction, while a relatively small percentage of
the budget, was more difficult to find than we anticipated. We approached the reduction by
focusing on administrative or indirect cost, in areas where workload has been reduced due to
the state of the economy or due to programming changes, by reviewing internal parity and
sustainability, and by deferring capital outlays. These are to ensure reductions will have
minimal service impacts on the community and as recommended by the Community Budget
Advisory Group.
The resulting reductions total $2.03 million over the biennium, and include reducing another
4.5 FTEs as more fully described in the budget detail.
Fund Balance
After the mid -biennium budget adjustment, the General Fund will end the 2011-2012 biennium
with a $1.2 million decrease to the estimated 2010 year end fund balance for a projected total
of $9.9 million or a little over 10% of General Fund expenditures. This is below the 12% target
but above the 8% required minimum. The City also maintains a $5 million catastrophic reserve
in the Risk Management Fund and a well funded equipment replacement reserve. These
reserves and fund balances would provide a safety net during a turbulent and uncertain period
in our history.
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, 2010. 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 records always displays information in conformance with legal parameters. All
members of the division are to be commended for their consistent dedication to excellence in
local government finance. Significant contributors are specifically identified in the
acknowledgements on page ii of this document. We are pleased with the comprehensive
Introduction, 1-6
2011 Comprehensive Annual Financial Report
City of Renton, Washington
content and quality of this financial report knowing that the citizens of Renton can rely on this
report as the definitive assessment of all City financial operations.
Sincerely,
Iwen Wang
Administrative Services Administrator
Jamie Thomas
Fiscal Services Director
Introduction, 1-7
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Renton
Washington
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2010
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
r
President
Executive Director
CITY COUNCIL
Rich Zwicker, President
Randy Corman, Marcie Palmer,
Terri Briere, Ed Prince, Greg Taylor,
Don Persson
425-430-6500
COMMUNITY SERVICES
Terry Higashiyama, Administrator
425-430-6600
Facilities
Peter Renner, Director
Parks Planning & Natural
Resources
Leslie Betlach, Director
Recreation
Tim Williams, Director
Human Services
Karen Bergsvik, Manager
Library
Bette Anderson, Director
Renton History Museum
Elizabeth Stewart, Manager
Community Resources and
Events
Parks & Golf Course
Kelly Beymer, Director
RENTON CITIZENS
MAYOR
Denis Law
425-430-6500
CHIEF ADMINISTRATIVE OFFICER
Jay Covington
425-430-6500
PUBLIC WORKS
Gregg Zimmerman, Administrator
425-430-7394
Maintenance Services
Michael Stenhouse, Director
Transportation Systems
Douglacobson, Deputy PW
Administrator
Utility Systems
Lys Hornsby, Director
POLICE
I I FIRE AND EMERGENCY SERVICES
Kevin Milosevich, Chief Mark Peterson, Chief/ Administrator
425-430-7503 425-430-7501
Support Operations
Tim Troxel, Deputy Chief
Special Operations
Investigations
Administrative
Services
Staff and Auxiliary
Services
I Patrol Services I
Patrol Operations
F UNICIPAL COURT JUDGE
TerryJurado
425-430-6550
COMMUNITY AND ECONOMIC
DEVELOPMENT
Chip Vincent, Administrator
425-430-6580
Economic Development and
Neighborhoods
Suzanne Dale Estey, Director
Development Services
Neil Watts, Director
Planning
Vacant, Director
CITY ATTORNEY
Larry Warren, Administrator
425-255-8678
HUMAN RESOURCES& RISK
MANAGEMENT
Nancy Carlson, Administrator
425-430-7650
Response Operations Human Resources
Bill Flora, Deputy Fire Chief Cathryn Laird, Manager
Safety and Support Services
Erik Wallgren, Deputy Chief
Emergency Management
Deborah Needham, Director
Community Risk Reduction
Dave Pargas, Assistant Fire
Marshall
Risk Management
Gary Lamb, Manager
FTBrenefits Program
Boggs, Manager
EXECUTIVE
Jay Covington, CAO
425-430-6500
Mayor's Office
Communications
Preeti Shridhar, Director
ADMINISTRATIVE SERVICES
Iwen Wang, Administrator
425-430-6858
Finance
Jamie Thomas, Director
Information Technology
Mehdi Sadri, Director
City Clerk/ Cable Manager
Bonnie Walton, City Clerk
2011 Comprehensive Annual Financial Report
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City of Renton, Washington
Introduction, 1-10
ipR op
It
Washington State Auditor
Brian Sonntag
INDEPENDENT AUDITOR'S REPORT
June 29, 2012
Council
City of Renton
Renton, Washington
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, King County, Washington, as of and for the year ended December 31, 2011,
which collectively comprise the City's basic financial statements as listed in the table of
contents. These financial statements are the responsibility of the City's management. 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 of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
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, King County,
Washington, as of December 31, 2011, and the respective changes in financial position and,
where applicable, cash flows thereof for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
Insurance Building, P.O. Box 40021 • Olympia, Washington 98504-0021 • (360) 902-0370 • TDD Relay (800) 833-6388
FAX (360) 753-0646 • http://www.sao.wa.gov
As described in Note 1, during the year ended December 31, 2011, the City has implemented the
Governmental Accounting Standards Board Statement No. 54 - Fund Balance Reporting and
Governmental Fund Type Definitions.
In accordance with Government Auditing Standards, we will also issue our report dated June 29,
2012, 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 the internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards and should be
considered in assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis on pages 3-1 through 3-14, budgetary comparison
information on page 5-1, pension trust fund on pages 5-2 and information on postemployment
benefits other than pensions on pages 5-3 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 the 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.
Our audit was performed for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The accompanying information
listed as combining financial statements on pages 6-1 through 6-40 is presented for purposes of
additional analysis and is 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.
The information identified in the table of contents as the Introductory and Statistical Sections is
presented for purposes of additional analysis and is 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.
Sincerely,
BRIAN SONNTAG, CGFM
STATE AUDITOR
2011 Comprehensive Annual Financial Report
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City of Renton, Washington
2011 Comprehensive Annual Financial Report
City of Renton, Washington
MANAGEMENT'S DISCUSSION AND ANALYSIS
The City of Renton's discussion and analysis provides a narrative overview of the City's financial
activities for the fiscal year ended December 31, 2011. The intent of the discussion and analysis is
to review the City's financial performance as a whole.
This Management's Discussion and Analysis (MD&A) combined with the Transmittal Letter, the
Financial Statements, and the Notes to the Financial Statements represent the complete 2011
financial activities for the City of Renton. These are all intended to help the reader understand the
City's significant financial issues. This MD&A provides an overview of the City's financial records.
The data in this financial report also identifies any material deviations from the financial plan and
the adopted annual budget. Finally, the intent of the MD&A and other financial information is to
isolate and identify individual fund issues or concerns.
FINANCIAL INFORMATION
The City's Government -wide Financial Statements were prepared on the full accrual basis of
accounting in conformity with Generally Accepted Accounting Principles (GAAP). The City's Fund
Financial Statements for its major and non -major governmental funds were prepared on the
modified accrual basis of accounting in conformity with GAAP. The City's major and non -major
enterprise funds, internal service funds, and pension funds were accounted for on the full accrual
basis of accounting in conformity with GAAP.
The City of Renton, along with all cities, counties, and other governmental entities in Washington,
must comply with the Budgeting, Accounting, and Reporting System (BARS) as defined by the
Washington State Auditor's Office (SAO). SAO audits the financial records of all cities and other
governmental units within the State. The City of Renton's financial system integrates financial and
administrative controls that ensure the safeguarding of assets and the reliability of financial
reports. These controls are designed to provide:
1. reasonable assurance that transactions are executed in accordance to management
understanding and approval;
2. reasonable assurance that transactions are executed in accordance to GAAP;
3. accountability for control of assets and obligations; and
4. assurance that sufficient reporting and review exists to provide adequate information for
analysis and comparability of data.
Internal control is a high priority for the City. SAO reviews the City's internal controls, and the City
receives and takes action on all the recommendations made.
The City maintains strong budgetary controls in order to ensure compliance with legal provisions
embodied in the annual appropriated budget as approved by the City Council. The City Council
must authorize any budget increase or decrease to any fund.
Management's Discussion and Analysis, 3-1
2011 Comprehensive Annual Financial Report
Financial Highlights
City of Renton, Washington
• The City's total assets as of December 31, 2011, exceeded liabilities by $453.3 million.
• As of December 31, 2011, the City's Governmental Activities reported net assets of $453.3
million. Of this total, $53.2 million is defined as unrestricted and can be used for needs the
Mayor and Council deem necessary. These monies are intended to provide a cushion
against significant economic downturns in revenues and to maintain sufficient working
capital and cash flow to meet daily financial needs.
• Investment in capital assets (net of related debt) comprises $373.6 million of the $453.3
million in Governmental Activities net assets.
• The business type activities have total net assets of $240.4 million. 90.3% of this total,
$217.1 million, represents the City's investments in capital assets (net of related debt). An
unrestricted balance of $23.3 million remains and is used to meet day to day cash flow
requirements and to ensure we can meet all obligations of the utilities and other funds if
the revenues do not meet expectations.
• The City's total outstanding long-term debt as of December 31, 2011, was $141.5 million.
Of this amount, $41.4 million are revenue bonds and PWTF loans dedicated to the
waterworks projects. Employee leave balances and other post -employment benefits total
$9.1 million. The balance of $91.0 million of City debt is dedicated for general
governmental purposes, including the purchase of City Hall, the construction of the
downtown parking garage, construction of two libraries, replacement of a fire station,
purchase of a fire station, the construction of a regional communications center and
construction of a regional jail facility.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis provides an introduction and overview to the City of Renton's basic
financial statements. The basic financial statements are comprised of three components:
1. Government -wide Financial Statements;
2. Fund Financial Statements; and
3. Notes to the Financial Statements.
The graphic representation below illustrates the required components of the City's annual
financial report and how the required parts are arranged and relate to one another. This
illustration helps explain the City's financial presentation in 2011. This graphic representation
should be used in conjunction with the following explanations to help guide the reader in
understanding the financial condition of the City of Renton.
Management's Discussion and Analysis, 3-2
2011 Comprehensive Annual Financial Report
Figure 1
REQUIRED COMPONENTS OF THE
ANNUAL FINANCIAL REPORT
Mana.,lement Discussion
and Analysis
{required supplementary information)
IC (new)
c e Government -wide Financial Statements (new)
r Fund financial Statements (refocused)
2 Notes to tlx: Financial Statements
LVI(expanded/restructured)
� � o Required Supplementary
v ' Information
o Cr_ a (other than MD&A)
2 -
City of Renton, Washington
In addition to the required components shown in Figure 1, the City's annual report also includes
other voluntary supplementary information. The most significant section is the Combining
Statements. These provide Balance Sheets, Statement of Revenues, Expenditures, and Changes in
Fund Balances with Budget to Actual comparisons, Statement of Net Assets, and Cash Flows for all
Non -Major Funds.
The next section of information, the Statistical Section, provides a ten-year view of the City's
Revenue, Expenditures, Debt Obligations, and Debt Capacity; the City's largest taxpayers, and
those entities with the largest employment within the City of Renton. This section provides a long-
term perspective on the City's economy.
BASIC FINANCIAL STATEMENTS
Government -wide Financial Statements provide readers with a broad overview of the City of
Renton's finances in a manner similar to a private sector business. They provide both short-term
and long-term information about the City's overall financial status. The government -wide
statements distinguish between functions of the City that are principally supported by taxes and
intergovernmental revenues (referred to as "governmental activities") from functions that are
intended to recover all or a significant portion of their costs through user fees and charges
(referred to as "business -type activities.") The governmental activities of the City include a full
range of local government services provided to the public such as police and fire protection; road
maintenance and construction; community planning and economic development; libraries, parks,
and recreational opportunities; and other community services. The business -type activities of the
City include waterworks (water, sewer, and surface water), solid waste management and services,
golf course, and airport.
Management's Discussion and Analysis, 3-3
2011 Comprehensive Annual Financial Report City of Renton, Washington
The Statement of Net Assets presents information on all of the City's assets and liabilities with the
difference between the two reported as net assets. This statement combines and consolidates
governmental funds' current financial resources (short term available resources) with capital
assets and long-term obligations, which is primarily debt. The Statement of Net Assets serves a
purpose similar to that of the Balance Sheet of a private -sector business. Over time, increases or
decreases in net assets may serve as one indicator of whether the financial position of the City is
improving or deteriorating. Other indicators 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).
The Statement of Activities focuses upon both the gross and net cost of various activities that are
provided by the government's general tax and other revenues. This is intended to summarize and
simplify the user's analysis of cost to various governmental services and/or subsidy to various
business -type activities. By separating program revenue from general revenue, users of the
financial statements can identify the extent to which each program relies on taxes for funding.
The Governmental Activities reflect the City's basic functions: General Government, Judicial,
Security of Person and Property, Physical Environment, Mental and Physical Health, and Culture
and Recreation. Property, sales, and utility taxes finance the majority of these functions.
All changes in net assets are reported using the accrual basis of accounting, which is similar to the
accounting used in the private sector. The accrual basis of accounting requires that revenues are
reported when earned and expenses are reported when incurred, no matter when the revenue
will actually be received or the obligation will be paid. For example, property taxes are shown as a
receivable and revenue even though some amount of these taxes will not be available to the City
for several years. Unpaid vendor obligations are illustrated as an accounts payable obligation as of
December 31.
Fund Financial Statements
The City uses funds to ensure and demonstrate fiscal integrity and compliance with finance related
legal requirements with a focus on Major Funds. A fund is a group of related accounts that is 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.
A Major Fund has three elements as defined by GASB 34:
• Total assets, liabilities, revenues, or expenditures of that individual governmental or
enterprise funds are at least ten percent (10%) of the corresponding total (assets, liabilities,
etc.) for all funds of that category or type (i.e., governmental, proprietary, or fiduciary); and
• Total assets, liabilities, revenues, or expenditures/expenses of the individual government
fund or enterprise funds are at least five percent (5%) of the corresponding total for all
governmental and enterprise funds combined; or
Management's Discussion and Analysis, 3-4
2011 Comprehensive Annual Financial Report
City of Renton, Washington
• Any other governmental or enterprise fund that the government's officials believe is
particularly important.
Governmental Funds present most of a government's tax -supported activities. The Proprietary
Funds describe and financially manage the government's business -type activities where all or part
of the activities' costs are supported by fees and charges that are paid directly by those who
benefit from the activities. Fiduciary Funds control resources held by the government as a trustee
or agent for parties outside of the government. The resources of Fiduciary Funds cannot be used
to support the government's own programs.
Governmental Funds
The Governmental Fund Balance Sheet and Governmental Fund Statement of Revenues,
Expenditures, and Changes in Fund Balances present separate columns of financial data for the
General Fund, Municipal Facilities CIP Fund and Capital Improvement Fund. These comprise the
City's major governmental funds. Data from the remaining governmental funds are combined and
presented in a single, aggregated column in the fund statements. Individual fund data for each of
the non -major governmental funds is provided in the form of combining statements.
Governmental Funds are used to account for essentially the same functions reported as
governmental activities in the Government -wide Financial 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 be spent in the near future
to finance City services.
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 information presented for
governmental funds with similar information presented for governmental activities in the
Government -wide Financial Statements. This gives the reader a better understanding of the long-
term impact of the government's near-term financing decisions. The Governmental Fund Balance
Sheet and the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund
Balances provide reconciliation to the governmental activities column in the government -wide
statements to facilitate this comparison.
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.
General fund budget variances are specifically addressed later in this discussion and analysis.
Proprietary Funds
These types of funds consist of two types of funds: Enterprise and Internal Service. They have
always been operated as private business activity. Enterprise Funds are used to report the same
functions as business -type activities in the Government -wide Financial Statements. Internal
Service Funds are used to report activities that provide supplies and services to various City
Management's Discussion and Analysis, 3-5
2011 Comprehensive Annual Financial Report City of Renton, Washington
departments and to accumulate and allocate the associated costs of providing these services to
the various functions. The revenues and expenses of Internal Service Funds that are duplicated in
other funds are eliminated in the government -wide statements. Because the remaining balances
primarily benefit governmental, rather than business -type activities, they have been included
within Governmental Activities in the Government -wide Statements.
The City of Renton has two major proprietary funds: Waterworks Utility (water, wastewater, and
stormwater) and Solid Waste. The Proprietary Fund Balance Sheet and the Proprietary Fund
Statement of Revenues, Expenses, and Changes in Fund Equity present separate columns of
financial data for the Waterworks Utility and Solid Waste. Data from the remaining Enterprise
Funds are combined and presented in a single, aggregated column in the fund statements.
Governmental Activities Internal Service Funds are reported separately in this section.
Proprietary Fund statements provide the same type of information as the Government -wide
Financial Statements, only in more detail, since both apply the accrual basis of accounting. In
comparing the total assets and total liabilities between the two statements, only slight differences
will be noticed. One notable difference is that the "due from other funds" (asset) and the "due to
other funds" (liability) in the proprietary fund statements are combined in a single line called
"internal balances" in the asset section of the Government -wide Statement of Net Assets.
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. All of
the City's fiduciary activities are reported in a separate Statement of Fiduciary Net Assets and a
Statement of Changes in Fiduciary Net Assets.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data
provided, and are an integral part of the Government -wide and Fund Financial Statements.
Combining statements for non -major Governmental and Enterprise Funds, as well as Internal
Service Funds, are presented immediately following the required supplementary information.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Statement of Net Assets
Changes in Net Assets may serve as a useful indicator of a government's financial position. The
overall financial position has improved for the City of Renton over the prior year. Changes in Net
Assets from 2010 to 2011 shows an increase in total net assets of $21.4 million.
Management's Discussion and Analysis, 3-6
2011 Comprehensive Annual Financial Report
City of Renton, Washington
Table 1 is a condensed version of the Government -wide Statement of Net Assets.
rent and other assets
iital assets
TOTAL ASSETS
Long-term liabilities
Other liabilities
TOTAL LIABILITIES
NET ASSETS:
Invested in capital assets, net of related debt
Restricted
Unrestricted
TOTAL NET ASSETS
TABLE 1
CONDENSED STATEMENT OF NET ASSETS
Governmental Activities Business -type Activities
2011 2010 2011 2010 2011
$ 132,921,226 $ 110,211,266 $ 27,572,702 $ 22,876,764 $ 160,493,928
432,796,288 426,430,381 258,473,522 258,268,233 691,269,810
565,717,514 536,641,647 286,046,224 281,144,997 851,763,738
Total
2010
$ 133,088,030
684,698,614
817,786,644
99,449,845 83,035,094 42,069,463 44,940,693 141,519,308 127,975,787
12,949,403 13,014,744 3,532,129 4,401,367 16,481,532 17,416,111
112,399,248 96,049,838 45,601,592 49,342,060 158,000,840 145,391,898
373,641,842 383,016,494 217,103,722 214,001,083 590,745,564 597,017,577
26,432,127 11,664,101 - 58,747 26,432,127 11,722,848
53,244,297 45,911,214 23,340,910 17,743,107 76,585,207 63,654,321
$ 453,318,266 $ 440,591,809 $ 240,444,632 $ 231,802,937 $ 693,762,898 $ 672,394,746
The majority of the City's net assets (85%) are investments in capital assets (e.g., streets, drainage,
construction in progress, buildings, equipment, water and sewer pipes) less any related
outstanding debt used to acquire these assets. The City's capital assets are used to provide
services to citizens. It should be noted that although the investment in capital assets is reported
net of related debt, resources needed to repay this debt must be provided from other sources
since the capital assets themselves cannot be used to liquidate these liabilities.
Investments in capital assets net of related debt decreased from 2010 to 2011 by $6.3 million.
Investments in capital assets decreased by $9.4 million in the Governmental activities, which is
due to the issuance of $16.7 million of new debt to build two new libraries. Very little capital work
had taken place in 2011; therefore no significant assets have been recorded related to the new
debt. Business -type activities increased $3.1 million primarily due to capital activity as opposed to
significant reductions in debt although revenue bond debt in the Golf Course fund (a business -type
activity) was replaced by an interfund loan from the General Fund in 2010. Interfund loan debt is
not included in the calculation of Investments in capital assets net of related debt.
Restricted assets, representing resources that are subject to external restrictions on how they may
be used, equate to 3.8% of total net assets, up from 1.7% in 2010. This increase is related to the
$16.7 million of new debt issued in 2011 which is restricted for capital construction related to the
new libraries. The remaining balance (unrestricted net assets) of $76.6 million will be used to
meet the City's ongoing commitments and plans.
As of December 31, 2011, the City reports positive balances in all three categories of net assets,
for the government as a whole, as well as for separate governmental and business -type activities.
Statement of Change in Net Assets
The City's total net assets (before prior period adjustments) increased in 2011 by $22.4 million.
Governmental activities generated 57% of this total or $12.7 million, while business -type activities
generated $9.7 million of this total.
Management's Discussion and Analysis, 3-7
2011 Comprehensive Annual Financial Report
Table 2 is a condensed version of the Statement of Activities for the City.
City of Renton, Washington
Expenses:
CONDENSED STATEMENT OF ACTIVITIES
Governmental
Activities
Business -type Activities
Total
2011
2010
2011
2010
2011
2010
Revenues:
2,563,989
2,402,692
Public safety
52,627,849
50,657,146
Program revenues:
52,627,849
50,657,146
Physical environment
2,151,322
2,425,279
Charges for services
$ 15,534,490
$ 15,895,357
$ 62,328,294
$ 55,064,203
$ 77,862,784 $
70,959,560
Operating grants and contributions
15,540,897
10,520,151
465,468
125,819
16,006,365
10,645,970
Capital grants and contributions
12,135,982
9,102,331
2,473,309
1,056,961
14,609,291
10,159,292
General revenues:
819,138
882,740
Culture and recreation
11,955,737
13,518,312
Propertytaxes
33,309,975
32,586,884
-
-
33,309,975
32,586,884
Sales and use taxes
22,008,777
21,591,375
Waterworks utility
-
22,008,777
21,591,375
Other taxes
20,984,369
21,236,078
-
-
20,984,369
21,236,078
Other general revenues
1,594,288
877,145
188,325
397,637
1,782,613
1,274,782
Total revenues
121,108,778
111,809,321
65,455,396
56,644,620
186,564,174
168,453,941
Expenses:
General government
4,268,321
10,018,501
4,268,321
10,018,501
Judicial
2,563,989
2,402,692
2,563,989
2,402,692
Public safety
52,627,849
50,657,146
52,627,849
50,657,146
Physical environment
2,151,322
2,425,279
2,151,322
2,425,279
Transportation
25, 376, 308
16,903,492
25, 376, 308
16,903,492
Economic environment
6,491,151
7,363,396
6,491,151
7,363,396
Health and human services
819,138
882,740
819,138
882,740
Culture and recreation
11,955,737
13,518,312
11,955,737
13,518,312
Interest on long-term debt
2,165,960
2,127,347
-
-
2,165,960
2,127,347
Waterworks utility
-
-
37,148,813
36,574,469
37,148,813
36,574,469
Airport
2,026,804
1,993,202
2,026,804
1,993,202
Solid waste utility
14,434,201
14,826,315
14,434,201
14,826,315
Golf course
-
2,099,936
2,296,870
2,099,936
2,296,870
Total expenses
108,419,775
106,298,905
55,709,754
55,690,856
164,129,529
161,989,761
Increase in net assets before transfers
12,689,003
5,510,416
9,745,642
953,764
22,434,645
6,464,180
Transfers
37,454
(17,095)
(37,454)
17,095
Increase in net assets
12,726,457
5,493,321
9,708,188
970,859
22,434,645
6,464,180
Net assets- beginning
440,591,809
434,357,089
231,802,937
230,921,831
672,394,746
665,278,920
Prior period adjustments
-
741,399
(1,066,493)
(89,753)
(1,066,493)
651,646
Net assets- ending
$ 453,318,266
$ 440,591,809
$ 240,444,632
$ 231,802,937
$ 693,762,898
$ 672,394,746
Sixty-six percent (66%) of the City's total activities are for governmental activities such as providing
police, fire, parks, libraries, recreation, building safety, and planning services. The remaining
activities relate to business -type services provided by the City. The largest business -type activities
include water, sewer, surface water and solid waste activities.
Governmental Activities Analysis
Governmental activities cost a total of $108.4 million in 2011, up 2% from 2010. Of this amount,
$43.2 million was paid for either by those who directly benefited from the programs or by other
governments and organizations that subsidized certain programs with grants and contributions.
The net expense (total expenses less program revenues) of $65.2 million was the cost of
governmental services City taxpayers primarily paid through various taxes.
Management's Discussion and Analysis, 3-8
2011 Comprehensive Annual Financial Report
City of Renton, Washington
Chart 1 portrays the cost of each of the City's governmental programs along with each program's
generated revenues (fees and intergovernmental revenues specifically related to that program).
Chart 1
Expensesand Program Revenues- Governmental Activities
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
Program
O Expenses ■Program Revenues
Chart 2 depicts the sources of revenues that fund governmental activities. Approximately sixty-
three percent (63%) is from various taxes. Charges for services, grants, and interest earnings
generate thirty-three percent (37%) of total revenue for general governmental activities.
Chart 2
Revenues by Source- Governmental Activities
Other General Revenues
1%
Charges for Services
13%
Other Taxes Operating G ra nts a nd
17% Contributions
13%
Capital Grants and
Property Taxes Contributions
28% 10%
Business -Type Activities Analysis
Charts 3 and 4 present the same information on business -type activities as illustrated for
governmental activities. Chart 3 shows the expense of each of the City's business -type programs
along with each program's generated revenues (fees and intergovernmental revenues specifically
related to that program).
Management's Discussion and Analysis, 3-9
2011 Comprehensive Annual Financial Report
City of Renton, Washington
Chart 3
Expenses and Program Revenues- Business -Type Activities
$50,000,000
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
Waterworks Utility Airport Solid Waste Utility Golf Course
Program
D Expenses ■ Program Revenues
The City's largest business -type activity, the Waterworks Utility, had a positive net change ($8.4
million) at the end of 2011 compared to $21,000 change in 2010. This large increase is primarily
due to rate increases, which are necessary to replace failing systems and provide on-going capital
infrastructure replacements. The City generated $45.6 million in various fees for services and
other sources from waterworks activities and had $37.1 million in expenses. The Airport's total
expenses were $2.0 million. Total revenues for 2011 were $2.0 million, which is consistent with
2010 revenues. The Solid Waste Utility's revenues were $15.0 million generated from fees for
services and $111,488 in grants and contributions. The total expenses were $14.4 million. The
Golf Course generated a total of $2.0 million in green fees, driving range charges, and other user
fees. The total expenses for the Golf Course were $2.1 million. The Golf Course had a loss of
$85,000 for the year.
Chart4
Revenues by Source - Business -Type Activities
Capital Grants and
Contributions Other General Revenues
4% 0%
Management's Discussion and Analysis, 3-10
2011 Comprehensive Annual Financial Report City of Renton, Washington
Business -type activities are supported primarily from charges for services. In the City of Renton,
$62.3 million was generated from charges for services in the business -type activities. These
comprise ninety-eight percent (95%) of the total financial support for these activities. Grant
revenues increased $1.8 million from 2010 to 2011 largely due to a surface and storm water
improvement grant for approximately $1.0 million and US Department of Transportation grant for
approximately $500,000 for the airport taxiway improvements.
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
Governmental Funds Analysis
The focus of the City's governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City's
financing requirements. In particular, unreserved fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the fiscal year.
As of the end of the fiscal year, the City's governmental funds reported combined ending fund
balances of $49.2 million, an increase of $17.2 million in comparison to last year. This large
increase is attributed to a $16.7 million in general obligation bonds issue in 2011. Approximately
fifty-nine percent (59%) constitutes unrestricted fund balance, which has been either committed or
assigned to reflect the City Council and management's plans and commitments to be expended in
future periods. The remainder of the fund balance is reserved or designated to indicate that it is
not available for new spending because it has already been committed for operating or capital
reserves. The large increase in fund balances resulted from the issuance of general obligation
debt, mentioned above, and is restricted for the capital construction of two new libraries.
The General Fund is the chief operating fund of the City. At the end of the current year,
unrestricted fund balance of the general fund was $13.8 million, while total fund balance ended at
$15.7 million. Although unrestricted, this balance has assigned designation for specific functions
and plans approved by the City Council. The fund balance increased by $1.3 million as the City was
able to realize expenditure savings in excess of revenue received.
The Municipal Facilities CIP fund has been included as a major fund of the City due to the
importance of municipal projects that may be accounted for in this fund in any given year. The
fund balance increased by $17.1 million in 2011 and is directly related the general obligation debt
noted earlier.
The Capital Improvement fund is the last major governmental fund. This fund accounts for the
many transportation -related projects in the City. The fund balance increased $129,200.
Proprietary Funds Analysis
The fund financial statements for the proprietary funds are presented in more detail, but
essentially provide the same type of information found in the business -type activities in the
government -wide financial statements. Net assets in the Waterworks Utility Fund and the Solid
Waste Fund were $215.4 million and $2.9 million respectively. This represents an increase in the
Management's Discussion and Analysis, 3-11
2011 Comprehensive Annual Financial Report City of Renton, Washington
Waterworks Utility Fund of $7.5 million and an increase in the Solid Waste Fund of $0.7 million.
The factors concerning the finances of these two funds have been addressed in the discussion of
business -type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year there was a $4.2 million increase in appropriations between the original and final
amended budget. This increase was mainly due to 2010's LEOFFI medical contribution to fully
fund actuarially determined annual obligations for 2010 ($700,000) and to fund the gap for
banking service fees ($197,000). Other increases were department carryfoward requests which
were offset by an increase of $2.7 million to budgeted revenues. In addition, the General Fund did
not spend $6.1 million of the legally appropriated expenditures. As a result, the General Fund fund
balance increased by $768,000 in 2011.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City of Renton's investment in capital assets, including construction in progress, for its
governmental and business -type activities as of December 31, 2011, amounts to $691.3 million as
presented on the following table.
The increase of $6.6 million in 2011 is made up of large capital projects such as Rainier Ave.,
Strander Blvd., Lake Washington Trail, Rainer Ave. storm water improvements, and
Stonegate/Summerwind wastewater improvements. More detail about the City's Capital Assets
can be found in Note 5 to the financial statements.
Debt Administration
As shown in Table 4, the City's total outstanding debt at December 31, 2011, was $129.7 million.
This was a net increase (new issues less principal payments and refunding) of $10.5 million.
Management's Discussion and Analysis, 3-12
TABLE 3
CAPITAL
ASSETS
(Net of Depreciation/Amortization)
Governmental Activities
Business -Type Activities
Total
2011
2010
2011
2010
2011
2010
nd and Land Improvements
$ 182,417,081
$ 178,817,027
$ 6,165,321
$ 6,165,321
$ 188,582,402
$ 184,982,348
i ildi ngs and Structures
64,658,927
66,856,417
11,192,993
11,642,209
75,851,920
78,498,626
:her Improvements
142,756,922
145,034,569
230,654,790
231,025,361
373,411,712
376,059,930
achinery and Equipment
9,512,108
9,780,472
640,493
584,590
10,152,601
10,365,062
tangible Assets
647,589
1,133,843
827,827
832,123
1,475,416
1,965,966
instruction in Progress
32,803,660
24,808,053
8,992,098
8,018,629
41,795,758
32,826,682
Total
$ 432,796,287
$ 426,430,381
$ 258,473,522
$ 258,268,233
$ 691,269,809
$ 684,698,614
The increase of $6.6 million in 2011 is made up of large capital projects such as Rainier Ave.,
Strander Blvd., Lake Washington Trail, Rainer Ave. storm water improvements, and
Stonegate/Summerwind wastewater improvements. More detail about the City's Capital Assets
can be found in Note 5 to the financial statements.
Debt Administration
As shown in Table 4, the City's total outstanding debt at December 31, 2011, was $129.7 million.
This was a net increase (new issues less principal payments and refunding) of $10.5 million.
Management's Discussion and Analysis, 3-12
2011 Comprehensive Annual Financial Report
TABLE 4
LONG-TERM DEBT
City of Renton, Washington
The City was able to reduce aggregate debt service payments and realize present value gains by
refunding 2001 General Obligation Refunding Bonds. More detailed information about the City's
long-term debt can be found in Note 13 to the financial statements.
FUTURE YEAR'S BUDGETARY IMPACTS
The 2011-2012 adopted budget is the first biennial budget for the City of Renton. After the mid -
biennial budget adjustment, total adopted revenue is $487 million against total expenditures of
$532 million. The adjusted revenue shows an increase of 6.9% from the combined 2009-2010
adopted budget level and the expenditures reflect an increase of 14.9% from the adopted 2009-
2010 budgeted expenditures. In addition to implementing a biennial budget, the City also formed
a Community Budget Advisory Group comprised of local residents, business owners, and
community leaders. This group was asked several questions in order to solicit their suggestions on
opportunities for greater efficiencies and costs savings. They were able to provide the City with a
number of valuable recommendations, some of which have been included in the 2011-2012
adopted budget.
We initially saw a promising start in early 2010, but the recovery slowed to a crawl during the
second quarter of 2010. Our modest growth projections for 2011 were barely met. Housing
starts and permits slowly began increasing in 2011 and continue with upward growth into the first
quarter of 2012. During budget preparation in 2010, our preliminary projections indicated that
maintaining current levels of services in General Government Operations would result in a deficit
of $2 million in this budget period. We made the necessary adjustments to bring our
expenditures in line with our revenue projections through the next biennium. Every department
made difficult choices, reducing or reorganizing services while minimizing adverse impacts to our
citizens. In addition, the 2011-2012 adopted budget does not restore any of the service
reductions made during 2010 even though some of these cuts and reductions cannot be sustained
in the long run. It is likely these service reductions will remain for the 2013-2014 biennial budget.
The City is committed to continuing efforts to evaluate the way we do business. We will continue
to right -size the structure of government. We will continue to engage our employees to help find
innovative and effective ways of serving our citizens. We will continue to practice fiscal
responsibility and reduce our debt. And we will continue to work with our labor groups to find
sustainable ways of managing our labor costs in order for us to continue to provide quality
services to our citizens with fewer dollars.
Management's Discussion and Analysis, 3-13
Governmental Activities
Business -Type Activities
Total
2011
2010
2011
2010
2011 2010
General Obligation Bonds
$ 50,290,000
$ 36,425,000
$ -
$ -
$ 50,290,000 $ 36,425,000
Revenue Bonds
-
-
34,925,000
36,955,000
34,925,000 36,955,000
Other Long -Term Debt
38,053,639
38,511,875
6,443,218
7,357,566
44,496,857 45,869,441
Total
$ 88,343,639
$ 74,936,875
$ 41,368,218
$ 44,312,566
$ 129,711,857 $ 119,249,441
The City was able to reduce aggregate debt service payments and realize present value gains by
refunding 2001 General Obligation Refunding Bonds. More detailed information about the City's
long-term debt can be found in Note 13 to the financial statements.
FUTURE YEAR'S BUDGETARY IMPACTS
The 2011-2012 adopted budget is the first biennial budget for the City of Renton. After the mid -
biennial budget adjustment, total adopted revenue is $487 million against total expenditures of
$532 million. The adjusted revenue shows an increase of 6.9% from the combined 2009-2010
adopted budget level and the expenditures reflect an increase of 14.9% from the adopted 2009-
2010 budgeted expenditures. In addition to implementing a biennial budget, the City also formed
a Community Budget Advisory Group comprised of local residents, business owners, and
community leaders. This group was asked several questions in order to solicit their suggestions on
opportunities for greater efficiencies and costs savings. They were able to provide the City with a
number of valuable recommendations, some of which have been included in the 2011-2012
adopted budget.
We initially saw a promising start in early 2010, but the recovery slowed to a crawl during the
second quarter of 2010. Our modest growth projections for 2011 were barely met. Housing
starts and permits slowly began increasing in 2011 and continue with upward growth into the first
quarter of 2012. During budget preparation in 2010, our preliminary projections indicated that
maintaining current levels of services in General Government Operations would result in a deficit
of $2 million in this budget period. We made the necessary adjustments to bring our
expenditures in line with our revenue projections through the next biennium. Every department
made difficult choices, reducing or reorganizing services while minimizing adverse impacts to our
citizens. In addition, the 2011-2012 adopted budget does not restore any of the service
reductions made during 2010 even though some of these cuts and reductions cannot be sustained
in the long run. It is likely these service reductions will remain for the 2013-2014 biennial budget.
The City is committed to continuing efforts to evaluate the way we do business. We will continue
to right -size the structure of government. We will continue to engage our employees to help find
innovative and effective ways of serving our citizens. We will continue to practice fiscal
responsibility and reduce our debt. And we will continue to work with our labor groups to find
sustainable ways of managing our labor costs in order for us to continue to provide quality
services to our citizens with fewer dollars.
Management's Discussion and Analysis, 3-13
2011 Comprehensive Annual Financial Report City of Renton, Washington
The City continues to benefit from progressive economic development activities even as the
country continues to struggle through the worst economic recession in history.
• The Landing is a master planning development area on land previously owned by Boeing.
The development has added more than 900 residential units and 600,000 square feet of
retail, including a major entertainment district to the city's core. Restaurants and stores
at the Landing have enjoyed double-digit sales growth over the previous year. Several
new tenants have come in including Dick's Sporting Goods, Marshalls and Panera Bread.
• Harrington Square, a very impressive apartment complex celebrated its grand opening in
the Highlands/Sunset area.
• A number of new companies located in Renton this year that resulted in over 500 new
local jobs for our community and new businesses opened in the Downtown, Cascade
Village, Renton Village, Southport and Highlands areas of the City. Downtown Renton
continues to attract new businesses including several new restaurants, Pike Place Bakery, a
new children's clothing store and a book store.
• The Farmers Market continues to enjoy record attendance — over 4,000 people every week
and 58 registered vendors. The market has also expanded to Valley Medical Center on
Sundays.
• The Seahawks Training Camp brought over 22,000 people to Renton during the summer,
many who shopped and dined in our community.
• Private investors purchased the 21 acres south of the Landing and we are looking forward
to a significant redevelopment of this area.
• The City signed a historic agreement with Boeing for a 20 -year renewed lease for the
Renton Municipal Airport. Boeing continues to have over 2,000 orders worth more than
$157 billion, and announced that their increased production of the 737 MAX will take place
in Renton, increasing production rates to 42 airplanes per month by 2014.
• Waterways Cruises has been successfully operating their unique sightseeing and dining
cruises from Southport in Renton, bringing over 7,000 visitors to our community in its first
year of operation.
• The Compass Regional Veteran's Center opened in downtown Renton. This attractive four-
story building occupies nearly 60,000 square feet and offers 58 units of affordable housing
for veterans and their families and 8,500 square feet of retail space.
For more information regarding future year's budgetary impacts, please refer to the Transmittal
Letter within this document under: Factors Affecting Financial Condition - Economic Condition.
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 Iwen Wang, Finance and Information Technology
Administrator, 1055 South Grady Way, Renton, WA 98057 or visit our web site at
www.rentonwa.gov.
Management's Discussion and Analysis, 3-14
2011 Comprehensive Annual Financial Report
ASSETS
Cash and cash equivalents
Cash with fiscal agent
Deposit with fiscal agent
Investments at fair value
Receivables (net of allowance
for uncollectibles)
Internal balances
Inventories
Prepayments
Other non-current assets
Intangible assets (net)
Land
Construction in progress
Capital assets (net of accumulated
depreciation)
Total assets
LIABILITIES
Accounts payable and
other liabilities
Interest payable
Unearned revenue
Non-current liabilities:
Due within one year
Due in more than one year
Total liabilities
Restricted for OPEB
Investment in capital assets,
net of related debt
Restricted for:
Judicial
Public safety
Cuture and recreation
Debt service
OPEB liability
Unrestricted
Total net assets
City of Renton, Washington
STATEMENT OF NET ASSETS
December 31, 2011
10,713,999
PRIMARY GOVERNMENT
13,770,934
GOVERNMENTAL
BUSINESS -TYPE
367,999
ACTIVITIES
ACTIVITIES
TOTAL
$ 45,475,533
$ 12,606,868 $
58,082,401
125,134
-
125,134
1,329,607
-
1,329,607
26,826,729
7,441,156
34,267,885
14,496,078
8,124,483
22,620,561
1,514,117
(1,514,117)
-
-
322,500
322,500
238,401
-
238,401
42,915,627
591,812
43,507,439
647,589
827,827
1,475,416
182,417,081
6,165,321
188,582,402
32,803,660
8,992,098
41,795,758
216,927,958
242,488,276
459,416,234
565,717,514
286,046,224
851,763,738
10,713,999
3,056,935
13,770,934
209,084
158,915
367,999
2,026,320
316,279
2,342,599
7,120, 581
3,180,123
10,300, 704
92,329,264
38,889,340
131,218,604
112,399,248
45,601,592
158,000,840
373,641,842 217,103,722 590,745,564
31,600
577,252
19,448, 219
1,032,361
5,342,695
53,244,297
31,600
577,252
19,448, 219
1,032,361
- 5,342,695
23,340,910 76,585,207
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-1
2011 Comprehensive Annual Financial Report
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2011
Page 1 of 2
City of Renton, Washington
Business -type activities:
Waterworks utility
37,148,813 43,003,494
159,585
PROGRAM REVENUES
Airport
2,026,804 2,294,383
194,395
48,327
OPERATING
14,434,201 15,015,434
111,488
-
CHARGES FOR
GRANTS AND
CAPITAL GRANTS
FUNCTIONS/PROGRAMS
EXPENSES
SERVICES
CONTRIBUTIONS
& CONTRIBUTIONS
Primary government:
164,129,529 77,862,784
16,006,365
14,609,291
Governmental activities:
Taxes:
General government
$ 4,268,321 $
2,756,613
$ 1,186,986 $
32,661
Judicial
2,563,989
3,565,216
35,034
-
Public safety
52,627,849
641,483
7,936,188
-
Physical environment
2,151,322
1,015,323
-
83,192
Transportation
25,376,308
3,275,596
5,938,820
11,724,871
Economic environment
6,491,151
2,486,396
334,896
-
Health and human services
819,138
-
-
-
Culture and recreation
11,955,737
1,793,863
108,973
295,258
Interest on long-term debt
2,165,960
-
-
-
Total governmental activities
108,419,775
15,534,490
15,540,897
12,135,982
Business -type activities:
Waterworks utility
37,148,813 43,003,494
159,585
2,424,982
Airport
2,026,804 2,294,383
194,395
48,327
Solid waste utility
14,434,201 15,015,434
111,488
-
Golf course
2,099,936 2,014,983
-
-
Total business -type activities
55,709,754 62,328,294
465,468
2,473,309
Total primary government
164,129,529 77,862,784
16,006,365
14,609,291
General revenues:
Taxes:
Property taxes
Retail sales taxes
Business taxes
Excise taxes
Penalties and interest
Interest and investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning
Prior Period Adjustment
Net assets - ending
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-2
2011 Comprehensive Annual Financial Report
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2011
22,008,777
Page 2 of 2
16,870,284
NET (EXPENSE) REVENUE AND CHANGES IN NET ASSETS
16,870,284
PRIMARY GOVERNMENT
GOVERNMENTAL
BUSINESS -TYPE
-
ACTIVITIES
ACTIVITIES
TOTAL
719,606
$ (292,061)
$
(292,061)
1,036,261
(37,454)
1,036,261
(44,050,178)
150,871
(44,050,178)
(1,052,807)
9,708,188
(1,052,807)
(4,437,021)
(4,437,021)
(3,669,859)
(3,669,859)
(819,138)
(819,138)
(9,757,643)
(9,757,643)
(2,165,960)
(2,165, 960)
(65,208,406)
(65,208,406)
8,439,248
8,439,248
510,301
510,301
692,721
692,721
(84,953)
(84,953)
9,557,317
9,557,317
(65,208,406)
9,557,317
(55,651,089)
33,309,975
33,309,975
22,008,777
22,008,777
16,870,284
16,870,284
4,113, 705
4,113, 705
380
-
380
602,516
117,090
719,606
991,772
71,235
1,063,007
37,454
(37,454)
-
77,934,863
150,871
78,085, 734
12,726,457
9,708,188
22,434,645
(1,066,493) (1,066,493)
$ 453,318,266 $ 240,444,632 $ 693,762,898
City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-3
2011 Comprehensive Annual Financial Report
ASSETS
Cash & cash equivalents
Cash with fiscal agent
Deposit with fiscal agent
Investments
Receivables (net of allowances)
Taxes
Customer accounts
Accrued interest & penalty
Special assessments
Interfund loans receivable
Due from other funds
Due from other governmental units
Advances to other funds
TOTAL ASSETS
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2011
Page 1 of 2
MUNICIPAL
FACILITIES CAPITAL
GENERAL CIP IMPROVEMENT
City of Renton, Washington
OTHER TOTAL
GOVERNMENTAL GOVERNMENTAL
FUNDS FUNDS
$ 7,873,281 $
14,572,104 $
2,306,585 $
3,832,436 $
28,584,406
125,134
-
-
-
125,134
-
-
1,329,607
-
1,329,607
4,632,146
8,601,129
1,361,453
2,262,082
16,856,810
2,880,657
-
-
-
2,880,657
3,753,123
-
-
1,500
3,754,623
45,678
38,480
12,110
29,207
125,475
-
-
-
19,279
19,279
500,416
-
-
500,416
44,063
10,822
-
747
55,632
4,842,807
85,168
561,616
2,079,696
7,569,287
1,716,067
-
-
-
1,716,067
$ 26,413,372 $
23,307,703 $
5,571,371 $
8,224,947 $
63,517,393
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-4
2011 Comprehensive Annual Financial Report
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Taxes payable
Retainage payable
Due to other funds
Matured interest payable
Interfund loans payable
Custodial accounts
Deposits
Deferred revenue
Accrued employee wages and leave payable
Interfund advances - non-current
Total liabilities
Fund balances
Nonspendable
Loans/Advances receivable
Restricted
Committed
Capital purposes
Assigned
Capital purposes
Special revenue funds
Operating reserves and carryforwards
Unassigned
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
City of Renton, Washington
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2011
Page 2 of 2
MUNICIPAL OTHER TOTAL
FACILITIES CAPITAL GOVERNMENTAL GOVERNMENTAL
GENERAL CIP IMPROVEMENT FUNDS FUNDS
$ 2,656,549 $
362,604 $
382,460 $
36,605 $
3,438,218
33,148
34
-
-
33,182
-
16,475
133,600
500
150,575
73,546
1,019
39,735
-
114,300
-
-
9,188
9,188
-
133,840
133,840
225,935
-
225,935
34,739
-
34,739
4,151,414
1,971,987
6,123,401
3,489,265
-
-
3,489,265
-
-
566,160
-
566,160
10,664,596
380,132
1,264,983
2,009,092
14,318,803
1,149,907
-
-
-
1,149,907
786,611
18,120,553
-
1,032,360
19,939,524
-
3,081,070
3,380,397
1,007,024
7,468,491
1,725,948
925,991
2,946,437
5,598,376
-
-
-
1,230,034
1,230,034
13,812,258
-
13,812,258
15,748,776
22,927,571
4,306,388
6,215,855
49,198,590
$ 26,413,372 $
23,307,703 $
5,571,371 $
8,224,947 $
63,517,393
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-5
2011 Comprehensive Annual Financial Report City of Renton, Washington
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
December 31, 2011
FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ 49,198,590
Amounts reported for governmental activities in the statement of net assets are
different because:
Capital assets and other non-current assets used in governmental activities
are not financial resources and therefore are not reported in the governmental funds
Other non-current assets 42,896,348
Intangible assets (net of accumulated amortization) 647,589
Capital assets (net of accumulated depreciation) 432,148,699
The focus of governmental funds is on short-term financing, assets are
offset by deferred revenue and are not included in fund balances.
Deferred revenue 4,097,082
Certain liabilities (such as bonds payable and accrued expenses) are not due and
payable in the current period and therefore are not reported in the governmental funds
Interest payable (199,896)
Long-term liabilities (99,449,844)
Internal service funds are used by management to charge the costs of
certain activities to individual funds.
Total assets and liabilities of the internal service funds that are reported with
governmental activities, less amounts reported above. 23,979,698
NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 453,318,266
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-6
2011 Comprehensive Annual Financial Report City of Renton, Washington
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2011
Page 1 of 1
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
3,020,645
MUNICIPAL
(1,140,800)
OTHER
TOTAL
OTHER FINANCING SOURCES (USES)
FACILITIES
CAPITAL
GOVERNMENTAL
GOVERNMENTAL
Transfer in
GENERAL
CIP
IMPROVEMENT
FUNDS
FUNDS
REVENUES
(2,268,329)
(76,772)
-
(1,799,056)
(4,144,157)
Taxes
$ 71,443,862 $
575,234
$ - $
4,247,592
$ 76,266,688
Licenses and permits
2,665,983
-
1,696,116
48,763
4,410,862
Intergovernmental revenues
10,534,331
389,757
7,706,388
811,481
19,441,957
Charges for services
3,860,290
658
-
330,076
4,191,024
Fines and forfeits
3,150,326
-
-
-
3,150,326
Interfund revenues
3,057,642
20,054,603
-
-
3,057,642
Contributions
192,699
(3,692)
4,034,441
65,000
4,288,448
Investment earnings
366,332
51,568
16,429
40,949
475,278
Miscellaneous revenues
646,868
114
42
1,584
648,608
TOTAL REVENUES
95,918,333
1,013,639
13,453,416
5,545,445
115,930,833
EXPENDITURES
Current:
General government
10,598,389
339,122
-
295
10,937,806
Judicial
2,563,989
-
-
2,563,989
Public safety
52,986,589
52,986,589
Physical environment
2,048,971
-
-
2,048,971
Transportation
8,018,267
-
2,019,343
734
10,038,344
Economic environment
5,876,231
325,731
-
245,201
6,447,163
Health and human services
511,934
-
-
511,934
Culture and recreation
10,215,229
868,867
81,985
11,166,081
Capital outlay
78,089
2,322,659
12,565,685
15,425
14,981,858
Debt service:
Principal payments
-
-
-
2,783,237
2,783,237
Interest and fiscal charges
-
116,744
9,188
2,376,944
2,502,876
TOTAL EXPENDITURES
92,897,688
3,973,123
14,594,216
5,503,821
116,968,848
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
3,020,645
(2,959,484)
(1,140,800)
41,624
(1,038,015)
OTHER FINANCING SOURCES (USES)
Transfer in
15,420
2,010,822
1,270,000
590,408
3,886,650
Transfer (out)
(2,268,329)
(76,772)
-
(1,799,056)
(4,144,157)
Restricted for OPEB
-
9,425,000
9,425,000
GO bonds issued
16,715,000
-
16,715,000
Premium on general obligation debt
-
1,405,553
862,616
2,268,169
Sale of capital assets
500
-
-
500
Payment to refunded bond escrow agent
-
-
-
(9,950,000)
(9,950,000)
TOTAL OTHER FINANCE SOURCES (USES)
(2,252,409)
20,054,603
1,270,000
(871,032)
18,201,162
NET CHANGE IN FUND BALANCE
768,236
17,163,147
(829,408)
17,095,119
129,200
FUND BALANCE JANUARY 1
14,980,540
5,832,452
4,177,188
7,045,263
32,035,443
FUND BALANCE DECEMBER 31
$ 15,748,776 $
22,927,571 $
4,306,388 $
6,215,855 $
49,198,590
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-7
2011 Comprehensive Annual Financial Report City of Renton, Washington
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL ACTIVITIES
For the Year Ended December 31, 2011
NET CHANGES IN FUND BALANCES -TOTAL GOVERNMENTAL FUNDS $ 17,163,147
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 capital outlays exceeded depreciation expense in the
current period. 5,651,389
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenue in the funds. 405,096
The issuance of long-term debt (e.g., bonds, leases) provides current financial
resources to governmental funds, while the repayment of the principal of
long-term debt consumes the current financial resources of governmental
funds. Neither transaction, however, has any effect on net assets. Also,
governmental funds report the effect of issuance costs, premiums, discounts,
and similar items when debt is first issued, whereas these amounts are deferrec
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 (16,444,986)
Increase (decrease) in other non-current assets which include the Net Pension
Asset and Investments in Joint Ventures which are not reported in governmental
funds. 2,479,608
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. 3,472,203
CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 12,726,457
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-8
2011 Comprehensive Annual Financial Report
ASSETS
Current assets:
Cash & cash equivalents
Investments at fair value
Receivables (net of allowances):
Customer accounts
Special assessments
Interest - investments
Due from other funds
Interfund loan receivable
Due from other governmental units
Inventory of materials and supplies
Prepayments
Total current assets
Noncurrent assets:
Special assessments deferred
Advances to other funds
Capital assets (net)
Intangible assets (net)
Deferred charges and other assets
Total noncurrent assets
TOTAL ASSETS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2011
Page 1 of 2
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
OTHER TOTAL
WATERWORKS SOLID ENTERPRISE ENTERPRISE
UTILITY WASTE FUNDS FUNDS
City of Renton, Washington
GOVERNMENTAL
ACTIVITIES
INTERNAL SERVICE
FUNDS
$ 9,207,083 $
1,482,310 $
1,917,477 $
12,606,870 $
16,891,126
5,434,445
874,928
1,131,784
7,441,157
9,969,921
5,376,766
1,563,827
100,804
7,041,397
33,425
93,298
-
-
93,298
-
50,346
6,942
10,062
67,350
90,495
-
38,025
7,441
45,466
56,301
94,887
-
-
94,887
-
718,624
107,838
95,976
922,438
42,117
263,073
-
59,425
322,498
-
-
-
-
-
238,400
21,238,522
4,073,870
3,322,969
28,635,361
27,321,785
121,251
-
-
121,251
-
199,855
-
199,855
-
236,303,033
21,342,661
257,645,694
8,376,720
827,827
-
827,827
343,328
470,561
-
470,561
-
237,922,527
21,342,661
259,265,188
8,720,048
$ 259,161,049 $
4,073,870 $
24,665,630 $
287,900,549 $
36,041,833
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-9
2011 Comprehensive Annual Financial Report City of Renton, Washington
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2011
Page 2 of 2
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-10
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
GOVERNMENTAL
OTHER
TOTAL
ACTIVITIES
WATERWORKS
SOLID
ENTERPRISE
ENTERPRISE
INTERNAL SERVICE
UTILITY
WASTE
FUNDS
FUNDS
FUNDS
LIABILITIES
Current liabilities:
Accounts payable
$ 957,249 $
1,061,638
$ 153,703 $
2,172,590 $
564,877
Claims incurred but not reported
-
-
-
-
2,442,195
Retainage payable
191,867
191,867
-
Due to other funds
43,101
-
43,101
Interfund loans payable
-
461,463
461,463
Due to other governments
904,289
-
904,289
Accrued interest payable
153,497
-
5,419
158,916
-
Accrued employee wages and benefits payable
380,449
20,248
99,095
499,792
333,027
Accrued taxes payable
32,183
62,215
73,714
168,112
1,988
Custodial accounts
18,640
-
166,767
185,407
-
Revenue bonds payable
2,115,000
-
-
2,115,000
-
Total current liabilities
4,796,275
1,144,101
960,161
6,900,537
3,342,087
Long-term liabilities:
Revenue bonds payable
32,810,000
-
-
32,810,000
-
Unamortized premium on revenue bonds
541,878
541,878
Unamortized discount on revenue bonds
(540,297)
-
(540,297)
Advances from other funds
-
1,349,762
1,349,762
Deferred revenue
167,920
148,358
316,278
-
Accrued employee wages and benefits payable
437,625
16,166
85,039
538,830
345,239
Public works trust fund loan payable
5,538,929
-
-
5,538,929
-
Total long-term liabilities
38,956,055
16,166
1,583,159
40,555,380
345,239
TOTAL LIABILITIES
43,752,330
1,160,267
2,543,320
47,455,917
3,687,326
NET ASSETS
Investment in capital assets,
net of related debt
195,761,061
-
21,342,661
217,103,722
8,720,048
Restricted for OPEB
-
-
-
-
5,342,695
Unrestricted
19,647,658
2,913,603
779,649
23,340,910
18,291,764
TOTAL NET ASSETS
$ 215,408,719 $
2,913,603
$ 22,122,310 $
240,444,632 $
32,354,507
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-10
2011 Comprehensive Annual Financial Report City of Renton, Washington
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For the Year Ended December 31, 2011
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-11
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
GOVERNMENTAL
OTHER
TOTAL
ACTIVITIES
WATERWORKS
SOLID
ENTERPRISE
ENTERPRISE
INTERNAL SERVICE
UTILITY
WASTE
FUNDS
FUNDS
FUNDS
OPERATING REVENUES:
Charges for services
$ 41,557,439 $
14,942,041 $
4,309,366 $
60,808,846 $
15,378,279
Interdepartmental services
930,553
1,396
-
931,949
-
Other services
565,124
72,000
-
637,124
12,750,617
TOTAL OPERATING REVENUES
43,053,116
15,015,437
4,309,366
62,377,919
28,128,896
OPERATING EXPENSES:
Operations and maintenance
20,694,873
11,956,271
2,618,424
35,269,568
23,290,849
Benefit payments
-
1,857
-
1,857
-
Administrative and general
4,729,678
401,534
601,655
5,732,867
897,430
Taxes
3,411,418
2,074,537
12,340
5,498,295
16,363
Depreciation
6,835,480
-
840,076
7,675,556
1,887,334
TOTAL OPERATING EXPENSES
35,671,449
14,434,199
4,072,495
54,178,143
26,091,976
OPERATING INCOME (LOSS)
7,381,667
581,238
236,871
8,199,776
2,036,920
NON-OPERATING REVENUES(EXPENSES):
Intergovernmental revenues
1,448,377
111,488
242,722
1,802,587
225,045
Investment earnings
93,042
9,726
14,321
117,089
126,733
Gain (loss) on sale of capital assets
-
-
-
-
16,539
Other non-operating revenues (expenses)
11,397
4,670
5,546
21,613
887,058
Interest expense
(1,387,713)
-
(54,247)
(1,441,960)
-
Amortization of debt discount and expense
(89,653)
-
-
(89,653)
-
NON-OPERATING REVENUE NET OF EXPENSE
75,450
125,884
208,342
409,676
1,255,375
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS
7,457,117
707,122
445,213
8,609,452
3,292,295
Capital contributions
1,136,190
-
-
1,136,190
-
Transfers in
-
-
179,907
Restricted for OPEB
(26,844)
(1,106)
(9,504)
(37,454)
-
CHANGE IN NET ASSETS
8,566,463
706,016
435,709
9,708,188
3,472,202
NET ASSETS, JANUARY 1
207,908,749
2,207,587
21,686,601
231,802,937
28,882,305
Prior Year Adjustment
(1,066,493)
-
-
(1,066,493)
-
NET ASSETS, JANUARY 1 RESTATED
206,842,256
2,207,587
21,686,601
230,736,444
28,882,305
NET ASSETS, DECEMBER 31
$ 215,408,719 $
2,913,603 $
22,122,310 $
240,444,632 $
32,354,507
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-11
2011 Comprehensive Annual Financial Report
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services
Cash received from other funds for services
Cash paid to suppliers for goods & services
Cash paid to other funds for goods & services
Cash paid to employees
Other operating receipts
Other non-operating receipts
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to/from other funds
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets
Capital grants
Principal payments on debt
Interest payments on debt
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of investments
Payments for investments
Interest on investments
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES
NET INCREASE (DECREASE) IN CASH &
CASH EQUIVALENTS
CASH & CASH EQUIVALENTS, JANUARY 1
TOTAL CASH & CASH EQUIVALENTS, DECEMBER 31
City of Renton, Washington
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2011
Page 1 of 2
WATERWORKS
UTILITY
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
OTHER TOTAL
SOLID ENTERPRISE ENTERPRISE
WASTE FUNDS FUNDS
GOVERNMENTAL
ACTIVITIES
INTERNAL SERVICE
FUNDS
$ 42,399,593 $
15,028,494 $
4,525,347 $
61,953,434 $
-
(1,025,237)
(38,025)
-
(1,063,262)
28,103,444
(29,803,054)
(13,635,918)
(3,348,060)
(46,787,032)
(21,193,380)
1,498,295
-
1,498,295
-
32,019
(7,941)
23,813
47,891
73,409
-
(589,858)
158,874
(430,984)
(1,926,180)
11,397
-
(35,978)
(24,581)
-
13,113,013
756,752
1,323,996
15,193,761
5,057,293
(26,844)
(1,106)
(9,504)
(37,454)
179,907
(26,844) $
(1,106)
(9,504)
(37,454)
179,907
(7,502,674)
(308,475)
(7,811,149)
(2,601,853)
1,448,377
1,448,377
(2,934,289)
(450,196)
(3,384,485)
(1,344,963)
(672)
(1,345,635)
(10,333,549)
(759,343)
(11,092,892)
(2,601,853)
425,322
Check Figures
425,322
-
-
(134,211)
27,780
(106,431)
1,236,041
47,074
4,240
(6,570)
44,744
59,559
472,396
(129,971)
21,210
363,635
1,295,600
3,225,016
625,675
576,359
4,427,050
3,930,947
5,982,067
856,635
1,341,118
8,179,820
12,960,179
$ 9,207,083 $
1,482,310 $
1,917,477 $
12,606,870 $
16,891,126
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-12
2011 Comprehensive Annual Financial Report
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization of
deferred charges
Other non-operating revenue
(Increase) decrease in
accounts receivable
(Increase) decrease in due from
other funds/governmental units
(Increase) decrease in inventory
& prepaid items
increase(decrease)in vouchers
retainage payable
increase(decrease)in due to
other funds/governmental units
increase(decrease)in payables
& other short-term liabilities
increase(decrease)in
customer deposits
increase(decrease)in
deferred revenues
increase(decrease)in accrued
employee leave benefits
Total adjustments
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
Restricted for OPEB
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Prior Period Adjustment
Contributions of capital assets
Net amort. bond prem. discount & bond issue costs
Depreciation
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2011
Page 2 of 2
WATERWORKS
UTILITY
City of Renton, Washington
BUSINESS -TYPE ACTIVITIES
GOVERNMENTAL
ENTERPRISE FUNDS
ACTIVITIES
OTHER
TOTAL INTERNAL
SOLID ENTERPRISE
ENTERPRISE SERVICE
WASTE FUNDS
FUNDS FUNDS
$ 7,381,667 $ 581,238 $ 236,871 $ 8,199,776 $ 2,036,920
6,835,480
-
840,076
7,675,556
1,887,334
11,397
116,158
206,744
334,299
1,128,642
277,030
13,057
94,875
384,962
11,465
(1,958,998)
(23,256)
(83,848)
(2,066,102)
857,140
3,710
(9,670)
(5,960)
19,791
49,304
(91,381)
(42,077)
153,946
1,501,503
-
1,501,503
-
(917,820)
75,639
(14,657)
(856,838)
(1,091,563)
-
9,597
9,597
(102,279)
111,576
9,297
-
32,019
(6,084)
23,813
49,748
53,618
5,731,346
175,514
1,087,125
6,993,985
3,020,373
$ 13,113,013 $
756,752 $
1,323,996 $
15,193,761 $
5,057,293
$ (1,066,493) $
- $
- $
(1,066,493) $
-
1,136,190
1,136,190
89,653
-
89,653
-
6,835,480
840,076
7,675,556
1,887,334
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-13
2011 Comprehensive Annual Financial Report
City of Renton, Washington
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
December 31, 2011
ASSETS
Cash & cash equivalents
Investments at fair value:
Federal National Mortgage Association
US Treasury Strips
Certificates of deposit
Receivables (net of allowances)
Interest on investments
TOTAL ASSETS
LIABILITIES
Vouchers & contracts payable
Deposits payable
TOTAL LIABILITIES
NET ASSETS
Held in trust for pension benefits
& other purposes
PENSION TRUST AGENCY
FIREFIGHTER'S SPECIAL
PENSION DEPOSITS
$ 1,173,234 $ 591,487
154,634 -
4,252,115
692,497
3,048,843 -
9,321,323 591,487
$ 9,321,323 $
7,200
584,287
591,487
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-14
2011 Comprehensive Annual Financial Report
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIREMEN'S PENSION FUND
For the Year Ended December 31, 2011
DEDUCTIONS:
Benefit payments 284,826
Administrative and general 8,762
TOTAL DEDUCTIONS 293,588
NETINCREASE(DECREASE) 831,200
NET ASSETS - JANUARY 1 8,490,123
NET ASSETS - DECEMBER 31 $ 9,321,323
City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-15
PENSION TRUST
FIREMEN'S
PENSION
ADDITIONS:
Other contributions:
Fire insurance premiums transferred in
$ 115,054
Investment income
Investment interest
355,380
Net increase / (decrease) in the fair value of investments
654,354
TOTAL ADDITIONS
1,124,788
DEDUCTIONS:
Benefit payments 284,826
Administrative and general 8,762
TOTAL DEDUCTIONS 293,588
NETINCREASE(DECREASE) 831,200
NET ASSETS - JANUARY 1 8,490,123
NET ASSETS - DECEMBER 31 $ 9,321,323
City of Renton, Washington
The notes to the financial statements are an integral part of this statement. Basic Financial Statements, 4-15
2011 Comprehensive Annual Financial Report City of Renton, Washington
NOTES TO THE FINANCIAL STATEMENTS
January 1, 2011 through December 31, 2011
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Renton was incorporated on September 6, 1901, and operates under the laws of the
State of Washington applicable to a Non -Charter code city with a Mayor/Council form of
government. 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 statues, together with a Municipal Airport, a Waterworks Utility, a Solid Waste Utility, and
a Municipal Golf Course.
The accounting and reporting policies of the City related to the funds included in the
accompanying financial statements conform to generally accepted accounting principles (GAAP)
applicable to state and local governments. GAAP for local governments include those principles
prescribed by the Governmental Accounting Standards Board (GASB), the Financial Accounting
Standards Board (FASB), when applicable, and the American Institute of Certified Public
Accountants (AICPA) pronouncements that have been made applicable by GASB Statements or
Interpretations.
In accordance with GASB Statement 20, the City has not applied to its enterprise activities FASB
Statements and Interpretations, Accounting Principles Board opinions, and Accounting
Research Bulletins of the Committee of Accounting Procedure issued after November 30, 1989.
Effective for Fiscal Year 2011 reporting, the City implemented the following new accounting and
reporting standards issued by the Governmental Accounting Standards Board (GASB):
GASB Statement No. 54 — Fund Balance Reporting and Governmental Fund Types -
This Statement establishes fund balance classifications that comprise a hierarchy based
primarily on the extent to which a government is bound to observe constraints imposed
upon the use of the resources reported in governmental funds. The statement further
provides clarified definitions of the general fund, special revenue fund type, capital
projects fund type, debt service fund type, and permanent fund type.
/_wd4Z9]:491►[Cl401111 CA
As required by GAAP the City's financial statements present the City of Renton — the primary
government.
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.
The City of Renton has no component units (either blended or discretely presented) included in
these statements.
Basic Financial Statements, 4-16
2011 Comprehensive Annual Financial Report City of Renton, Washington
B. BASIC FINANCIAL STATEMENTS— GASB 34 PRESENTATION
The City's basic financial statements include both government -wide (reporting the City as a
whole) and fund financial statements (reporting the City's major funds). Both the government -
wide and fund financial statements categorize primary activities as either government or
business -type.
GOVERNMENT -WIDE STATEMENTS
In the Government -wide Statement of Net Assets, both the governmental and business -type
activities columns (a) are presented on a consolidated basis by column, and (b) are reported on
a full accrual, economic resource basis, which recognized all long-term assets and receivables as
well as long-term debt and obligations. The City's net assets are reported in three parts —
investment in capital assets, net of related debt; restricted net assets; and unrestricted net
assets. The City first utilizes restricted resources to finance qualifying activities.
The Government -wide Statement of Activities reports both the gross and net cost of each of the
City's functions and business -type activities (general government, judicial, public safety,
physical environment, transportation, economic environment, health and human services,
culture and recreation, waterworks utility, airport, solid waste utility, and golf course). General
government revenues (property taxes, timber taxes, retail sales and use taxes, business taxes,
excise taxes, and other taxes) also support the functions. The Statement of Activities reduces
gross expenses (including depreciation) by related program revenues, operating and capital
grants and contributions. Program revenues must be directly associated with the function or a
business -type activity. Operating grants include operating specific and discretionary (either
operating or capital) grants while the capital grants column reflects capital specific grants.
General revenues normally cover the net cost, by function or business -type activity.
The Government -wide focus is more on the sustainability of the City as an entity and the
change in the City's net assets resulting from the current year's activities.
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.
FUND FINANCIAL STATEMENTS
In the fund financial statements, the financial transactions are recorded in individual funds,
each accounted for by a separate set of self -balancing accounts that comprise assets, liabilities,
reserves, fund equity, revenues, and expenditures or expenses. The presentation is by major
funds in either the governmental or business -type categories. GASB Statement 34 sets forth
the minimum criteria for the determination of a major fund. The non -major funds are
combined in the fund financial statements and are detailed in the combining section.
The governmental major fund statements in the fund financial statement are presented on
current financial resources and modified accrual basis of accounting. Since governmental fund
Basic Financial Statements, 4-17
2011 Comprehensive Annual Financial Report City of Renton, Washington
statements are presented on a different measurement focus and basis of accounting than the
Government -wide statements' governmental column, reconciliation is presented at the end of
the statement, which briefly explains the adjustments necessary to transform the fund
statements into the Government -wide presentation.
Internal service funds of a government are presented in summary form as part of the
proprietary fund financial statements. Since the principal users of the internal services are the
City's governmental activities, financial statements for internal service funds are consolidated
into the governmental column when presented at the governmental level. These services are
reflected in the appropriate functional activity (general government, judicial, public safety,
physical environment, transportation, economic environment, health and human services,
culture and recreation).
Interfund fund activity has been eliminated from the Government -wide financial statements.
Exceptions are payments in lieu of taxes, external type transactions within the internal service
funds (revenue and expenses for interest or services provided to other governmental
organizations), and other charges for utilities. Elimination of these charges would distort the
direct cost and program revenues for these functions.
The following describes each fund as presented in the fund financial statements.
MAJOR FUNDS
CK�1�/�:T►f►�1�►11IFe1�11101*1
GENERAL FUND
The 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, police and fire departments,
human resources and technical services, community services, parks, economic development,
streets, property management for City owned leased facilities, library and museum, fire
memorial, and fire department's health and wellness programs. 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 accounted for within this fund, which is federally funded.
MUNICIPAL FACILITIES CIP FUND
The Municipal Facilities Construction Fund accounts for the acquisition and development of
municipal facilities. Resources include general and special revenue taxes, grants, and Council -
approved general obligation bonds.
Basic Financial Statements, 4-18
2011 Comprehensive Annual Financial Report City of Renton, Washington
CAPITAL IMPROVEMENT FUND
This fund supports the City of Renton transportation projects and projects linked with various
State and Federal funding programs. Many of the projects depend on grants, LIDS, and
mitigation revenue.
ENTERPRISE FUNDS
WATERWORKS UTILITY FUND
The Waterworks Utility Fund accounts for all operation and capital improvement programs for
water, wastewater, and storm water services within the City. The activities primarily supported
by user fees include: administration, billings and collections, debt service, engineering and
operation, maintenance and repairs. The primary resources for the capital improvement
programs are revenue bond proceeds, grants (as available), and utility connection charges.
SOLID WASTE FUND
Solid waste, recycling, and yard waste collection services for the City are accounted for in this
fund, supported entirely by service fees. The expenses include payment to the City's garbage
contractor and other service charges.
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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 one percent in hotel/motel taxes for the
purpose of increasing tourism in the City of Renton.
PATHS AND TRAILS RESERVE FUND
The Paths and Trails Reserve Fund was created for the purpose of planning, accommodating,
and establishing and maintaining certain paths and trails within 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.
Basic Financial Statements, 4-19
2011 Comprehensive Annual Financial Report
City of Renton, Washington
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.
DEBT SERVICE FUNDS
GENERAL GOVERNMENTAL MISCELLANEOUS DEBT SERVICE FUND
This debt service fund accounts for the following outstanding debt issues:
• 2001 limited tax general obligation refunding bonds which refunded a
portion of the 1997 limited tax general obligation bonds for the purchase
of Renton City Hall.
• 2002 limited tax general obligation bonds which provided funding for the
construction of a new fire station.
• 2006 limited tax general obligation bonds which provided funding for the
construction of South Lake Washington infrastructure improvements.
• 2009 intergovernmental debt related to the Fire District #40 asset transfer
as a result of the Benson Hill annexation.
• 2010 intergovernmental refunding debt which refunded a portion of the
2000 intergovernmental debt for the construction of a new facility for
Valley Communications Center.
• 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 2 new libraries.
1997 LIMITED GO BONDS — CITY HALL
This debt service fund accounts for the following outstanding debt issue:
• 2011 limited tax general obligation refunding bonds which refunded a
portion of the 2001 limited tax general obligation refunding bonds which
refunded a portion of the 1997 limited tax general obligation bonds for the
purchase of Renton City Hall.
Basic Financial Statements, 4-20
2011 Comprehensive Annual Financial Report City of Renton, Washington
CAPITAL PROJECT FUNDS
COMMUNITY DEVELOPMENT IMPACT MITIGATION FUND
Accounts for monies collected from developers to offset impacts created by their developments
to City facilities.
FIRE IMPACT MITIGATION FUND
Accounts for monies collected from developers to offset impacts created by their developments
to City facilities.
TRANSPORTATION IMPACT MITIGATION FUND
Accounts for monies collected from developers to offset impacts created by their developments
to City facilities
SOUTH LAKE WASHINGTON INFRASTRUCTURE PROJECT FUND
The South Lake Washington Infrastructure Project Fund accounts for the infrastructure
improvements at the south end of Lake Washington. Primary resources include: REET, sales
tax, grants, and GO Bonds which provide for the design, construction, labor wages and benefits,
and equipment required to implement the project.
ENTERPRISE FUNDS
AIRPORT FUND
Provides accounting for revenues and expenses, which provides 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.
OTHER FUND TYPES
INTERNAL SERVICE FUNDS
EQUIPMENT RENTAL
The Equipment Rental Fund accounts for the costs of maintaining and replacing all City vehicles
and auxiliary equipment, except for fire apparatus and replacement of police patrol vehicles. 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.
Basic Financial Statements, 4-21
2011 Comprehensive Annual Financial Report City of Renton, Washington
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. The Insurance Fund pays expenses and rates are
charged to departments based on use and/or coverage requirements.
FIDUCIARY FUNDS
Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an
agent for individuals, private organizations, other governmental units and/or other funds. The
City has one Pension Trust Fund and one Agency Fund.
PENSION TRUST FUND
FIREMEN'S PENSION FUND
The Firemen's Pension 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 general property tax allocations in accordance with actuarial calculations,
the fire premium tax, and investment income.
AGENCY FUND
SPECIAL DEPOSIT FUND
The Special Deposit Fund was established for the purpose of holding or retaining cash deposits
or other securities pending fulfillment of certain conditions and/or requirements by the
depositor. Refunds are made when all obligations have been met and only upon authorization
from the transmitting department.
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
Basis of Accounting refers to the point at which revenues or expenditures/expenses are
recognized in the accounts and reported in the financial statements. It relates to the timing of
the measurement made regardless of the measurement focus applied:
1. Accrual
Both governmental and business -type activities in the Government -wide financial statements
and the proprietary and fiduciary fund financial statements are presented on the accrual basis
of accounting. Revenues are recognized when earned and expenses are recognized when
incurred.
Substantially all governmental fund revenues are accrued. Property taxes are billed and
collected within the same period in which taxes are levied. Subsidies and grants to proprietary
funds, which finance either capital or current operations, are reported as non-operating
revenue based on GASB Statement 33. In applying GASB Statement 33 to grant revenues, the
provider recognizes liabilities and expenses and the recipient recognizes receivables and
Basic Financial Statements, 4-22
2011 Comprehensive Annual Financial Report City of Renton, Washington
revenue when the eligibility requirements, including time requirements, are met. Resources
transmitted before the eligibility requirements are met, are reported as advances by the
provider and deferred revenue by the recipient.
2. Modified Accrual
The governmental funds financial statements are presented on the modified basis of
accounting. Under the modified accrual basis of accounting, revenues are recorded when
susceptible to accrual: i.e., both measurable and available. "Available" means collectible within
the current period or soon enough thereafter to be used to pay liabilities of the current period.
The City considers all revenue reported in the governmental funds to be available if the
revenues are collected within sixty days after year-end. Expenditures are generally recognized
under the modified accrual basis of accounting when the related liability is incurred. The
exception to this general rule is that principal and interest on general obligation long-term
debt, if any, is recognized when due.
D. ASSETS, LIABILITIES, AND FUND EQUITY
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
assets as cash and cash equivalents or investments in the various funds. The interest on these
investments is prorated to the applicable funds. Included in this category are all funds invested
in the Local Government Investment Pool and Municipal Investor Account. Excluded from this
category are cash balances held by Fiscal Agents since the City does not have discretionary use
of these funds.
2. Investments (refer to Note 313.)
3. Receivables and Payables — Amounts owed/payable to/by the City at year-end.
Taxes receivable consists of property taxes and related interest and penalties (refer to Note 4).
Accrued interest receivable consists of amounts earned on investments, notes, and contracts.
Accrued interest payable consists of amounts owed on notes, loans, and contracts.
Customer accounts receivable/payable consists of amounts owed from/to private individuals or
organizations for goods and services. If the transactions are with another governmental unit, it
is accounted for within "due from/to other governments."
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. Deferred assessments consist of special assessments not due within one
year.
Basic Financial Statements, 4-23
2011 Comprehensive Annual Financial Report City of Renton, Washington
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.
Activity between funds that are representative of lending/borrowing arrangements outstanding
at the end of the fiscal year are referred to either "due to/from other funds" (i.e., the current
portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of
interfund loans). All other outstanding balances between the governmental activities and
business -type activities are reported in the Government -wide financial statements as "internal
balances" (Refer to Note 10).
Advances between funds, as reported in the fund financial statements, are offset by a fund
balance reserve account in applicable governmental funds to indicate that they are not
available for appropriation and are not expendable available financial resources.
In the Government -wide financial statements, and proprietary fund types in the fund financial
statements, long-term liabilities are reported in applicable governmental activities, business -
type activities, or proprietary fund type statement of net assets.
Unamortized Premium — the unamortized portion of the excess of bonds proceeds over their
face value (excluding accrued interest and issuance costs).
Deferred Amount -Refunding — the difference between the carrying amount of
redeemed/defeased debt and its reacquisition price. This amount is deferred and amortized
over the remaining life of the debt, or the life of the new debt, whichever is shorter.
4. 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. 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.
5. Capital Assets and Depreciation (refer to Note 5).
6. Deferred Revenues
This account includes amounts recognized as receivables but not revenues in the governmental
funds because the revenue recognition criterion has not been met.
7. Custodial Accounts
This account reflects the liability for net monetary assets being held by the City in its agency
capacity.
Basic Financial Statements, 4-24
2011 Comprehensive Annual Financial Report City of Renton, Washington
8. Compensated Absences
The City accrues accumulated unpaid vacation and other leave and associated employee -
related costs when earned (or estimated to be earned) by the employee. The non-current
portion (the amount estimated to be used in subsequent fiscal years) for governmental funds is
maintained separately and represents a reconciling item between the fund and Government -
wide presentations.
9. Fund Balance
Fund balances presented in the governmental fund financial statements represent the
difference between assets and liabilities reported within the governmental fund. Fund Balance
is classified into the following categories:
Nonspendable — items that cannot be spent due to form; inventories, prepaid amounts, long-
term loan receivables, or amounts that must be maintained intact legally.
Restricted — amounts constrained for specific purposes imposed by external parties.
Committed — amounts constrained by the City Council, either though formal budget adoption,
contract approvals, or for other purposes formally approved by the Council.
Assigned — all amounts remaining in governmental funds, other than the general fund, not
classified as nonspendable, restricted or committed. Amounts reported as committed also
include year-end encumbrances that have received approval from the City Council and re -
appropriated in the following year's carry forward budget. Also, the City's financial policies
require a maximum amount of 12% and minimum of 8% fund balance to remain in the general
fund for cash flow purposes.
Unassigned — any remaining fund balance in the general fund not classified as nonspendable,
restricted, committed or assigned.
10. Net Assets (refer to Note 11).
E. REVENUES, EXPENDITURES, AND EXPENSES
1. Program Revenues
Program revenues include charges for services to customers for goods and services provided,
operating grants and contributions, and non-operating grants and contributions within the
Government -wide Statement of Activities. Charges for services include business licenses,
construction permits, and weapon permits.
2. General Revenues
Property taxes, timber taxes, retail taxes, business taxes, excise taxes, and associated penalties
and interest, and interest and investment earnings are classified as general revenues within the
Government -wide Statement of Activities.
Basic Financial Statements, 4-25
2011 Comprehensive Annual Financial Report City of Renton, Washington
3. Interfund Transfers
Permanent reallocation of resources between funds of the reporting entity are classified as
interfund transfers. For purposes of the Government -wide Statement of Activities, all interfund
transfers between individual governmental funds have been eliminated.
4. Expenditures/Expenses
Expenses in the Government -wide Statement of Activities are reported by function as a
governmental activity (general government, judicial, public safety, physical environment,
transportation, economic environment, health and human services, culture and recreation, or
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. In 2010,
operating expenses were consolidated to Operations and maintenance, Administrative and
general, Taxes and Depreciation. The other categories reported previously (Benefit payments,
Professional services, and Insurance were assigned to Operations and maintenance and
Administrative and general as appropriate.
5. Operating and Non-operating Revenues and Expenses
Operating revenues and expenses for proprietary funds are those that result from providing
services and producing and delivering goods and/or services in connection to the proprietary
fund's principle ongoing operations. It includes all revenue and expenses not related to capital
and related financing, non -capital financing, or investing activities. All revenues and expenses
not meeting this definition are non-operating revenues and expenses.
NOTE 2. COMPLIANCE AND ACCOUNTABILITY
The City of Renton budgets its funds under Generally Accepted Accounting Principles (GAAP) at
the fund level. Annual appropriated budgets are adopted for governmental funds on a biennial
basis. Budgets for proprietary funds are "management budgets" and are not legally required to
be reported. Included in the Required Supplemental and Combining sections of the CAFR are
Schedules of Revenues, Expenditures, and Changes in Fund Balances (Budget to Actual)
reporting the Actual Budgetary GAAP Basis verses Actual GAAP Basis of Accounting for all
legally adopted budgets. There have been no material violations of finance -related legal or
contractual provisions, and there have been no expenditures exceeding legal appropriations in
any of the funds of the City.
A. PROCEDURES FOR ADOPTING THE ORIGINAL BUDGET
The City of Renton's budget procedures are mandated by the Chapter 35A.33 of the Revised
Code of Washington (RCW). The steps in the budget process are as follows:
1. Prior to November 1, the Mayor submits a proposed budget to the City Council. This budget
is based on priorities established by the Council; estimates provided by the City
departments during the preceding months; balanced by revenue estimates made by the
Mayor.
Basic Financial Statements, 4-26
2011 Comprehensive Annual Financial Report
City of Renton, Washington
2. The City Council conducts public hearings on the proposed budget in November and
December.
3. The Council makes their adjustments to the proposed budget and adopts, by ordinance, a
final balanced budget no later than December 31.
4. The final operating budget, as adopted, is published and distributed within the first four
months of the following year.
B. AMENDING THE BUDGET
The budget, as adopted, constitutes the legal authority for expenditures. Budgets are adopted
on the GAAP basis of accounting. Any comparisons between budget and actual revenues and
expenditures are reported under the GAAP basis. 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. The budget was amended three times during 2011.
Original budgeted inflows as compared to the final budgeted inflows are as follows:
Fund
Original
Budgeted
Inflows
Final
Budgeted
Inflows
Increase
(Decrease)
Budgeted
Inflows
General Fund
$ 94,251,824
$ 96,971,788
$ 2,719,964
Arterial Street Fund
620,000
620,000
-
Hotel/Motel Tax Fund
245,000
245,000
-
1%for Art Fund
15,000
32,000
17,000
Cable Communications Development Fund
85,000
85,000
-
General Government Miscellaneous Debt Service Fund
4,715,035
15,069,950
10,354,915
Community Development Impact Mitigation Fund
60,000
121,352
61,352
Fire Impact Mitigation Fund
100,000
100,000
-
Transportation Impact Mitigation Fund
250,000
250,000
-
Municipal Facilities CIP Fund
13,310,000
22,172,058
8,862,058
General Government Capital Improvement Fund
10,657,819
15,970,043
5,312,224
Airport Fund
3,439,418
3,865,418
426,000
Solid Waste Utility Fund
15,015,942
15,015,942
-
Golf Course Fund
2,583,545
2,583,545
-
Waterworks Utility Fund
44,828,741
46,660,496
1,831,755
Equipment Repair and Replacement/Information
Technology/ Facilities / Communications Fund
12,438,679
12,872,709
434,030
Insurance Fund
16,662,625
17,362,625
700,000
Firemen's Pension
300,000
300,000
-
TOTAL
$ 219,578,628
$ 250,297,926
$ 30,719,298
Basic Financial Statements, 4-27
2011 Comprehensive Annual Financial Report
City of Renton, Washington
Original budgeted outflows as compared to the final budgeted outflows are as follows:
Fund
Original
Budgeted
Outflows
Final
Budgeted
Outflows
Increase
(Decrease)
Budgeted
Outflows
General Fund
$ 94,833,829
$ 99,043,173
$ 4,209,344
Arterial Street Fund
620,000
620,000
-
Hotel/Motel Tax Fund
245,000
450,000
205,000
1% for Art Fund
50,000
68,257
18,257
Cable Communications Development Fund
85,674
221,301
135,627
General Government Miscellaneous Debt Service Fund
4,715,035
15,179,105
10,464,070
Community Development Impact Mitigation Fund
400,000
400,000
-
Fire Impact Mitigation Fund
529,056
529,056
-
Transportation Impact Mitigation Fund
499,494
999,494
500,000
Municipal Facilities CIP Fund
14,962,000
19,664,999
4,702,999
General Government Capital Improvement Fund
11,647,819
19,542,542
7,894,723
South Lake Washington Infrastructure Project Fund
-
58,000
58,000
Airport Fund
3,928,960
2,762,707
(1,166,253)
Solid Waste Utility Fund
14,951,710
14,951,710
-
Golf Course Fund
2,604,738
2,724,738
120,000
Waterworks Utility Fund
44,901,718
50,119,800
5,218,082
Equipment Repair and Replacement/ IT/ Facilities /
Communications Fund
12,922,735
15,865,368
2,942,633
Insurance Fund
16,399,992
16,124,992
(275,000)
Firemen's Pension
565,475
565,475
TOTAL
$ 224,863,236
$ 259,890,718
$ 35,027,482
For the year 2011 and on, the City will operate and adopt a biennial budget.
At year-end 2011, the City of Renton noted the Leased City Properties Fund, exceeded its final
adopted budget by $119,892. For financial reporting purposes, this fund is reported within the
General Fund, but is reported separately for budget purposes.
NOTE 3. DEPOSITS AND INVESTMENTS
A. Deposits
The City's deposits and certificates of deposit are insured by the Federal Depository Insurance
Corporation (FDIC) and the State of Washington Public Deposit Protection Commission
(WPDPC) Act of 1969.
B. Investments
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 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.
Basic Financial Statements, 4-28
2011 Comprehensive Annual Financial Report City of Renton, Washington
Currently, the City invests in obligations of the U.S. Government, U.S. agency issues, Certificates
of Deposit with Washington State banks and savings and loan institutions, the State of
Washington Local Government Investment Pool (LGIP), and general obligations of Washington
State municipalities.
The LGIP, managed by the Washington State Office of the Treasurer, is comparable to a Rule
2a7 -pools recognized by the Securities and Exchange Commission. A 2a7 -like -pool is an
external investment pool that is not registered with the SEC as an investment company but
nevertheless has a policy that it will, and does, operate in a manner consistent with the SEC's
Rule 2a7 of the Investment Company Act of 1940. Rule 2a7 allows SEC -registered mutual funds
to use amortized cost rather than fair value to report net assets and compute share prices.
Investments are shown on the entity -wide Statement of Net Assets at fair value or for 2a7 -like
pools at amortized cost, which approximates fair value. Investments are reported within Cash
and Investments of Governmental Activities and within Cash and Cash Equivalents or
Investments of Business -type Activities.
C. Deposit and Investment Schedule
As of December 31, 2011, the City of Renton had the following investments:
Reconcilation to Statements of Net Assets
Weighted
Governmental
Fiduciary
Average
Security Type
Cost
Fair Value
Maturity
Cash Equivalents
-
-
-
Local Government Investment Pool (LGIP)
$ 9,890,519 $
9,890,519
0.00
Investments
58,082,401
1,764,721
59,847,122
Certificates of Deposit (within WPDPC)
34,960,382
34,960,382
0.89
FNMA ZERO COUPON
99,556
154,634
0.83
US TREASURY ZERO COUPON
2,406,901
4,252,115
0.01
TOTAL INVESTMENTS
$ 37,466,839 $
39,367,131
Reconcilation to Statements of Net Assets
Governmental
Fiduciary
Total
Cash
$ 48,191,882 $
1,764,721 $
49,956,603
Restricted Cash
-
-
-
Cash Equivalents (LGIP)
9,890,519
-
9,890,519
Total Cash & Cash Equivalents
58,082,401
1,764,721
59,847,122
Investments
34,267,885
5,099,246
39,367,131
Total Investments
34,267, 885
5,099,246
39, 367,131
Total Cash & Investments
$ 92,350,286 $
6,863,967 $
99,214,253
Credit risk. Credit Risk is the risk that on issuer or other counter party to on investment will not
fulfill its obligations. All Agency securities in the City's portfolio are rated "Aaa" by Moody's
Investors Service and "AAA" by Standard & Poor — each rating is the highest possible.
Basic Financial Statements, 4-29
2011 Comprehensive Annual Financial Report City of Renton, Washington
Certificates of Deposit are insured by the FDIC up to $250,000 and, additionally, by collateral
held in a multiple financial institution collateral pool administered by the Washington Public
Deposit Protection Commission (WPDPC). The Washington State Local Government Investment
Pool (LGIP) is a 2a7 -like -pool and is operated in a manner consistent with the SEC's Rule 2a7 of
the Investment Company Act of 1940.
Security Type
Cost
Fair Value
Moody's
S&P
Cash Equivalents
U.S. Agencies 75%
50%
Local Government Investment Pool (LGIP)
$ 9,890,519 $
9,890,519
unrated
unrated
Investments
Certificates of Deposit (within WPDPC)
34,960,382
34,960,382
unrated
unrated
FNMA ZERO COUPON
99,556
154,634
N/A
N/A
US TREASURY ZERO COUPON
2,406,901
4,252,115
AAA
AAA
TOTAL INVESTMENTS
$ 37,466,839 $
39,367,131
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."
Custodial Credit Risk. 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. Securities held by a third -party custodian
are designated by the City's Finance and Information Services Administrator. Certificates of
Deposit are delivered to and held by the Finance Division.
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 as follows:
Instrument
Issuer
Maximum's per Policy Maximum
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%
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
Basic Financial Statements, 4-30
2011 Comprehensive Annual Financial Report City of Renton, Washington
established by the Investment Policy, which limits the weighted average maturity of the
portfolio to five years.
Security Type
0-6
months
6 months -
1 year
1-3
years
3+
years
Totals
Cash Equivalents
Local Government
Investment Pool
$ 9,890,519 $
- $
- $
- $
9,890,519
Investments
Certificates of Deposit
(within WPDPC)
14,394,108
12,950,682
5,600,192
2,015,400
34,960,382
FNMA ZERO COUPON
-
-
-
154,634
154,634
US TREASURY ZERO COUPON
-
213,023
714,032
3,325,059
4,252,115
TOTAL INVESTMENTS
$ 14,394,108 $
13,163,705 $
6,314,224 $
5,495,093 $
39,367,131
NOTE 4. 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 deferred revenue. During the year, property tax revenues are
recognized when cash is received.
The tax rate for general City operations is limited to $3.60 per $1,000 of assessed value (RCW
84.52.043). Of this amount, up to .45 cents per thousand dollars 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 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
Basic Financial Statements, 4-31
2011 Comprehensive Annual Financial Report
City of Renton, Washington
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.
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 2011 Annual Report is 2.83207.
NOTE S. CAPITAL ASSETS AND DEPRECIATION
A. GENERAL POLICIES
Major expenditures for capital assets, including capital leases and major repairs that increase
the useful life, are capitalized. The capitalization threshold applied to the City's assets is
$5,000. Maintenance, repairs, and minor renewals are accounted for as expenditures or
expenses when incurred.
All capital assets are valued at historical cost (or estimated cost, where historical cost is not
known/or estimated market value for donated assets/or the original historical cost when
transferred between proprietary and governmental funds.)
Intangible assets, either purchased or internally developed, with a cost of $5,000 or more that
are identifiable by meeting one of the following conditions:
• The asset is capable of being separate or divided and sold, transferred, licensed, rented,
exchanged; or
• The asset arises from contractual or other legal rights, regardless of whether those
rights are transferable or separable.
The City has acquired certain assets with funding provided by federal financial assistance
programs. Depending on the terms of the agreements involved, the federal government could
retain an interest in these assets. However, the City has sufficient legal interest to accomplish
the purposes for which the assets were acquired, and has included such assets within the
applicable statements.
The City capitalizes art and historical treasures. Art and historical treasures are expected to be
maintained or enhanced over time and thus, are not depreciated.
Basic Financial Statements, 4-32
2011 Comprehensive Annual Financial Report City of Renton, Washington
B. GOVERNMENTAL CAPITAL ASSETS
Governmental long-lived assets of the City purchased, leased, or constructed are recorded as
expenditures in the governmental funds and are capitalized, net of depreciation, in the
Government -wide statements. The infrastructure component of GASB 34 for assets acquired
after January 1, 1980 was implemented retroactively in 2004. Any gain on the sale of capital
assets is recorded in the Statement of Activities as General revenues, Miscellaneous. Donated
capital assets are capitalized at estimated fair value of the item at the date of its donation.
C. PROPRIETARY FUND CAPITAL ASSETS
Capital assets of proprietary funds are capitalized in their respective statement of net assets,
net of depreciation. Any gain on the sale of capital assets is recorded in the Statement of
Activities as General revenues, Miscellaneous.
D. DEPRECIATION AND AMORTIZATION
Depreciation on all depreciable assets is provided on the straight-line basis over the following
useful lives:
Estimated
Type of Asset Service Life
Buildings and structures, except utility plant 10-50 years
Other improvements 10-80 years
Utility plant 25-75 years
Machinery and equipment 3-40 years
Infrastructure 25-50 vears
Amortization on all intangible assets is provided on the straight-line basis over the following
useful lives:
Basic Financial Statements, 4-33
Estimated
Type of Asset
Service Life
Computer Software
3-15 years
Land Use Rights
3-12 years
Patents, Trademarks, Copyrights
3-50 years
Other Intangibles with definite useful lives
3-12 years
Basic Financial Statements, 4-33
2011 Comprehensive Annual Financial Report
City of Renton, Washington
Depreciation and Amortization Expense was charged to functions/programs of the primary
government as follows:
Governmental Activities
Depreciation
Amortization
Total
General Government
$ 3,032,791
$ 158,289 $
3,191,080
Pu b I i c Sa fety
974,972
116,690
1,091,662
Physical Environment
-
48,420
48,420
Transportation
3,271,662
3,141
3,274,803
Economic Development
43,989
-
43,989
Culture and Recreation
1,367,024
5,183
1,372,207
Health and Human Services
307,204
-
307,204
Internal Service Funds (General Governmental)
1,682,660
204,674
1,887,334
Total -Governmental Activities
$ 10,680,302
$ 536,397 $
11,216,699
Business -Type Activities
Waterworks
$ 6,831,184 $
4,296 $
6,835,480
Airport
545,005
- $
545,005
Golf Course
295,071
- $
295,071
Total -Business -Type Activities
$ 7,671,260 $
4,296 $
7,675,556
Basic Financial Statements, 4-34
2011 Comprehensive Annual Financial Report
E. SUMMARY OF CHANGES
City of Renton, Washington
�apltal asset activity ror the year enciea uecemoer sl, zu11 was as icmc)ws:
Primary Government
Beginning Ending
Balance Increases Decreases Balance
Governmental activities :
Capital assets, not being depreciated
Land and land improvements
$ 178,817,026
$ 3,600,055 $
- $
182,417,081
Construction in progress
24,808,053
9,636,900
1,641,293
32,803,660
Total capital assets, not being depreciated
203,625,079
13,236,955
1,641,293
215,220,741
Capital assets, being depreciated:
Buildings and structures
95,451,455
348,796
-
95,800,251
Other improvements
198,430,013
3,647,391
17,623
202,077,404
Machinery and equipment
30,853,045
2,050,822
959,840
31,944,027
Total capital assets being depreciated
324,734,513
6,047,009
959,840
329,821,682
Less accumulated depreciation for:
Buildings and structures
28,595,039
2,546,285
-
31,141,324
Other improvements
53,395,444
5,925,038
-
59,320,482
Machinery and equipment
21,072,573
2,208,979
849,633
22,431,919
Total accumulated depreciation
103,063,056
10,680,302
849,633
112,893,725
Total capital assets, being depreciated, net
221,671,457
(4,633,293)
110,207
216,927,957
Intangible Assets:
Intangible assets, not being amortized
-
-
-
-
Intangible assets, being amortized
4,886,199
50,143
4,936,342
Less accumulated amortization
3,752,356
536,397
4,288,753
Total intangible asset, being amortized, net
1,133,843
(486,254)
647,589
Total Intangible assets
1,133,843
(486,254)
-
647,589
Governmental activities capital assets, net
$ 426,430,379
$ 8,117,408 $
1,751,500 $
432,796,287
Business -type Activities:
Capital assets, not being depreciated
Land and land improvements
$ 6,165,321
$ - $
- $
6,165,321
Construction in progress
8,018,628
5,376,621
4,403,151
8,992,098
Total capital assets, not being depreciated
14,183,949
5,376,621
4,403,151
15,157,419
Capital assets, being depreciated:
Buildings and structures
17,195,908
-
-
17,195,908
Other improvements
328,155,384
6,756,296
17,623
334,894,058
Machinery and equipment
6,057,628
151,080
-
6,208,708
Total capital assets being depreciated
351,408,920
6,907,376
17,623
358,298,674
Less accumulated depreciation for:
Buildings and structures
5,553,700
449,215
-
6,002,915
Other improvements
97,130,023
7,126,867
17,623
104,239,267
Machinery and equipment
5,473,038
95,178
-
5,568,215
Total accumulated depreciation
108,156,760
7,671,260
17,623
115,810,397
Total capital assets, being depreciated, net
243,252,160
(763,884)
-
242,488,276
Intangible Assets:
Intangible assets, not being amortized
811,000
811,000
Intangible assets, being amortized
70,088
-
70,088
Less accumulated amortization
48,965
4,296
53,261
Total intangible asset, being amortized, net
21,123
(4,296)
16,827
Total Intangible assets
832,123
(4,296)
-
827,827
Business -type capital assets, net
$ 258,268,232
$ 4,608,441 $
4,403,151 $
258,473,522
Basic Financial Statements, 4-35
2011 Comprehensive Annual Financial Report
City of Renton, Washington
At the end of 2011, a total of 47 projects comprise the Construction in Progress. Upon
completion, the projects will be capitalized in the Government -wide statements in their
appropriate categories and in the fund statements for proprietary funds, if applicable.
Construction commitments as of December 31, 2011, are as follows:
Governmental Activities Projects
Construction
in progress
Remaining
Commitment
BENSON HILL CONDUIT PROJECT
$ 109,937
$ -
CITY ATTORNEY'S OFFICE FURNITURE/EQUIP
75,000
25,000
DOWNTOWN LIBRARY
648,343
-
ENERGOV PERMIT SOFTWARE AND IMPLEMENTATION
222,531
309,617
EVSE CHARGING STATIONS
53,931
-
FREIGHTLINER CAMERA VANS
366,138
-
GARDEN AVE N WIDENING
342,148
25,013
GOLF COURSE FIBER
5,753
-
HIGHLANDS LIBRARY
70,796
-
HIGHLANDS TO LANDING
150,260
198
MAY CREEK/HAWKS LANDING
330,932
NE 31ST ST CULVERT
10,997
3,053,505
NE 3RD/NE 4TH CORRIDOR
498,340
-
PAPERLESS IMAGING SYSTEM
71,930
-
RAINIER AV GRDY WY TO 2ND
23,457,401
389,935
RAINIER AVE PUBLIC ART WORK
2,000
48,000
RECORDS MGMTSYSTEM-LASERFICHE CITYWIDE
7,829
-
STRANDER BLVD - SW 27TH ST CONNECT
6,291,907
95,178
TELECOMMUNICATIONS NETWORK MITEL
40,950
352,616
TIFFANY CASCADE CONNECTOR
4,298
-
WALKWAY PROGRAM
14,358
WELLS AVE & GRADY TO TALBOT FIBER OPTIC CABLE
27,881
Total governmental activities
$ 32,803,660
$ 1,245,359
Business -Type Activities Projects
196 ZONE RESERVOIR & PUMP STATION
AUTOMATIC METER READING CONVERSION
CASCADE INTERCEPTOR
EAST RENTON LIFT STATION ELIMINATION
ELLIOT SPAWNING CHANNEL 06 FEMA REPAIR
EMERGENCY POWER TO PUMP STATION
EMERGENCY RESPONSE PROJ
GROUND WATER UNDER INFLUENCE CT
HARDIE AVE UNDERPASS STORM SYSTEM IMPROVEMENT
LAKE AVE S - RAINIER AVE S STORM IMPROVEMENTS
LIBERTY HIGH LIFT STATION
LK WA BLVD -HAWKS LAND WATER IMPROVEMENTS
LK WA BLV -HAWKS LAND STORM SYSTEM IMPROVEMENTS
LK WASH BEACH LS ELIM/REHAB
MAPLEWOOD EQUIPMENT ACCESS & H2S MITIGATION
PRESIDENT PARK SEWER REPLACEMENT
RAINIER AVE S ROAD & UTILITIES IMPROVEMENT
RENTON GATEWAY UTILITIES
STEEL/AC WATERMAIN REPLC PLAN
STONEGATE/SUMMERWIND REPLACEMENT
SURFACE WATER SYSTEM REHAB
TAXIWAY BRAVO REHAB
THUNDER HILLS SURFACE WATER DRAINGE
WATER QUALITY MONITORING
WESTVIEW LIFTSTATION REHAB
Total business -type activities
223,362
10,896
42 3, 446
2,191,494
236,745
80,581
281,020
7,774
158,591
5,196
138,005
-
7,997
11,924
-
171,146
131,083
1,244,595
238,263
100
-
283,309
-
842,337
14,369
591,040
-
1,283
-
468,616
10,420
198
-
290,799
9,148
-
3,053,505
100,162
1,840
-
198,251
32,915
39,222
-
48,235
48,971
267,384
8,815
$ 8,992,098
Basic Financial Statements, 4-36
2011 Comprehensive Annual Financial Report City of Renton, Washington
NOTE 6. PENSION PLANS
With the exception of firefighters employed prior to March 1, 1970, substantially all City's full-
time and qualifying part-time employees participate in one of the following statewide
retirement systems administered by the Washington State Department of Retirement Systems,
under cost-sharing multiple -employer public employee defined benefit and defined
contribution retirement plans. 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 writing to:
Department of Retirement Systems, Communications Unit, P.O. Box 48380, Olympia, WA
98504-8380.
The City is the administrator of the Firefighter Pension Plan for all firefighters employed prior to
March 1, 1970. The Firefighter 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 for six years, prepared by Milliman, Consultants and Actuaries, is
included in the Required Supplemental Information section. Additional information from the
actuarial report prepared for the Firefighter Pension Plan, by Milliman, Consultants and
Actuaries, may be obtained by contacting the City of Renton, Finance Division, 1055 South
Grady Way, Renton, WA 98057.
The following disclosures are made pursuant to GASB Statements No. 27, Accounting for
Pensions by State and Local Government Employers and No. 50, Pension Disclosures, an
Amendment of GASB Statements No. 25 and No. 27.
Public Employees' Retirement System (PERS) Plans 1, 2, and 3
Plan Description
PERS is a cost-sharing multiple -employer retirement system comprised of three separate plans
for membership purposes: Plans 1 and 2 are defined benefit plans and Plan 3 is a defined
benefit plan with a defined contribution component.
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 participating in national higher education retirement programs;
judges of district and municipal courts; and employees of local governments.
PERS participants, who joined the PERS system by September 30, 1977, are Plan 1 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
Basic Financial Statements, 4-37
2011 Comprehensive Annual Financial Report City of Renton, Washington
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. Notwithstanding, PERS
Plan 2 and Plan 3 members may opt out of plan membership if terminally ill, with less than five
years to live.
PERS defined benefit retirement benefits are financed from a combination of investment
earnings and employer and employee contributions. PERS retirement benefit provisions are
established in state statute and may be amended only by the State Legislature.
PERS Plan 1 members are vested after the completion of five years of eligible service. Plan 1
members are eligible for retirement at any age after 30 years of service, or at age 60 with five
years of service, or at age 55 with 25 years of service. The annual benefit is two percent of the
average final compensation (AFC) per year of service, capped at 60 percent. (The AFC is based
on the greatest compensation during any 24 eligible consecutive compensation months.) Plan
1 members who retire from inactive status prior to the age of 65 may receive actuarially
reduced benefits. The benefit is actuarially reduced to reflect the choice of a survivor option. A
cost -of -living allowance (COLA) is granted at age 66 based on years of service credit times the
COLA amount, increased by three percent annually. Plan 1 members may also elect to receive
an additional COLA amount that provides an automatic annual adjustment based on the
Consumer Price Index. 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 may retire at age 65 with five years of service with an allowance of two percent of the
AFC per year of service. (The AFC is based on the greatest compensation during any eligible
consecutive 60 -month period.) Plan 2 members who retire prior to the age of 65 receive
reduced benefits. If retirement is at 55 or older with at least 30 years of service, a three
percent per year reduction applies; otherwise an actuarial reduction will apply. The benefit is
also actuarially reduced to reflect the choice of a survivor option. There is no cap on years of
service credit; and a cost -of -living allowance is granted (based on the Consumer Price Index),
capped at three percent annually.
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 a benefit calculation at one percent of the AFC per year of
service. (The AFC is based on the greatest compensation during any eligible consecutive 60 -
month period.) 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 if twelve months were earned
after age 44; or after five service credit years earned in PERS 2 prior to June 1, 2003. Plan 3
members are immediately vested in the defined contribution portion of their plan. Vested Plan
3 members are eligible to retire with full benefits at age 65, or at age 55 with 10 years of
service. Plan 3 members who retire prior to age 65 receive reduced benefits. If retirement is at
age 55 or older with at least 30 years of service, a three percent per year reduction applies;
otherwise an actuarial reduction will apply. The benefit is also actuarially reduced to reflect the
Basic Financial Statements, 4-38
2011 Comprehensive Annual Financial Report City of Renton, Washington
choice of a survivor option. There is no cap on years of service credit; and Plan 3 provides the
same cost -of -living allowance as Plan 2.
The defined contribution portion can be distributed in accordance with an option selected by
the member, either as a lump sum or pursuant to other options authorized by the Employee
Retirement Benefits Board.
Judicial Benefit Multiplier
Beginning January 1, 2007 through December 31, 2007 judicial members of PERS were given
the choice to participate in the Judicial Benefit Program (JBM). Justices and judges in PERS 1
and 2 may make a one-time irrevocable election to pay increased contributions that would fund
a retirement benefit with a 3.5% multiplier. The benefit would be capped at 75% of AFC.
Judges in PERS Plan 3 can elect a 1.6% of pay per year of service benefit, capped at 37.5% of
average compensation.
Members who choose to participate in JBM will accrue service credit at a higher multiplier
beginning with the date of their election, be subject to the benefit cap of 75% of AFC, pay
higher contributions, stop contributing to the Judicial Retirement Account (JRA), and be given
the option to increase the multiplier on past judicial service. Members who do not choose to
participate will: continue to accrue service credit at the regular multiplier; continue to
participate in JRA, if applicable; never be a participant in the JBM Program; and continue to pay
contributions at the regular PERS rate.
Newly elected or appointed justices and judges who chose to become PERS members on or
after January 1, 2007, or who have not previously opted into PERS membership, were required
to participate in the JBM Program. Members required into the JBM program would: return to
prior PERS Plan if membership had previously been established; be mandated into Plan 2 and
not have a Plan 3 transfer choice, if a new PERS member; accrue the higher multiplier for all
judicial service; not contribute to JRA; and not have the option to increase the multiplier for
past judicial service.
Membership in PERS consisted of the following as of the latest actuarial valuation date for the
plans of June 30, 2010:
Retirees and beneficiaries receiving benefits 76,899
Terminated plan members entitled to but notyet receiving benefits 28,860
Active plan members vested 105,521
Active plan members non -vested 51,005
Tota 1 262,285
Basic Financial Statements, 4-39
2011 Comprehensive Annual Financial Report City of Renton, Washington
Following is a summary of the number of government employers participating in PERS as of
June 30, 2010.
Number of Participating Employers
Tota 1 489 227 634 976 2,326
Funding Policy
Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates,
Plan 2 employer and employee contributions rates, and Plan 3 employer contribution rates.
Employee contribution rates for Plan 1 are established by statute at six percent for state
agencies and local government unit employees, and 7.5 percent for state government elected
officials. The employer and employee contribution rates for Plan 2 and the employer
contribution rate for Plan 3 are developed by the Office of the State Actuary to fully fund Plan 2
and the defined benefit portion of Plan 3. All employers are required to contribute at the level
established by the Legislature. Under PERS 3, employer contributions finance the defined
benefit portion of the plan, and member contributions finance the defined contribution
portion. The Employee Retirement Benefits Board sets Plan 3 employee contribution rates. Six
rate options are available ranging from 5 to 15 percent; two of the options are graduated rates
dependent on the employee's age. As a result of the implementation of the Judicial Benefit
Multiplier Program in January 2007, a second tier of employer and employee rates was
developed to fund, along with investment earnings, the increased retirement benefits of those
justices and judges that participate in the program. The methods used to determine the
contribution requirements are established under state statute in accordance with Chapters
41.40 and 41.45 RCW.
The required contribution rates expressed as a percentage of current -year covered payroll, as
of December 31, 2011, were as follows:
Members not participating in JBM:
Contributor PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer* 7.25% 7.25% 7.25%
Employee 6.00% 4.64% ***
* The employer rates include the employer administrative expense
fee currently set at 0.16%.
** Plan 3 defined benefit portion only.
*** Variable from 5% to 15% based on rate selected bythe member.
Basic Financial Statements, 4-40
State
School Counties/
Other Pol itica I
Total
Plan
Agencies
Districts Municipalities
Subdivisions
Members
PERS 1
144
227 158
180
709
PERS 2
179
- 271
494
944
PERS 3
166
205
302
673
Tota 1 489 227 634 976 2,326
Funding Policy
Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates,
Plan 2 employer and employee contributions rates, and Plan 3 employer contribution rates.
Employee contribution rates for Plan 1 are established by statute at six percent for state
agencies and local government unit employees, and 7.5 percent for state government elected
officials. The employer and employee contribution rates for Plan 2 and the employer
contribution rate for Plan 3 are developed by the Office of the State Actuary to fully fund Plan 2
and the defined benefit portion of Plan 3. All employers are required to contribute at the level
established by the Legislature. Under PERS 3, employer contributions finance the defined
benefit portion of the plan, and member contributions finance the defined contribution
portion. The Employee Retirement Benefits Board sets Plan 3 employee contribution rates. Six
rate options are available ranging from 5 to 15 percent; two of the options are graduated rates
dependent on the employee's age. As a result of the implementation of the Judicial Benefit
Multiplier Program in January 2007, a second tier of employer and employee rates was
developed to fund, along with investment earnings, the increased retirement benefits of those
justices and judges that participate in the program. The methods used to determine the
contribution requirements are established under state statute in accordance with Chapters
41.40 and 41.45 RCW.
The required contribution rates expressed as a percentage of current -year covered payroll, as
of December 31, 2011, were as follows:
Members not participating in JBM:
Contributor PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer* 7.25% 7.25% 7.25%
Employee 6.00% 4.64% ***
* The employer rates include the employer administrative expense
fee currently set at 0.16%.
** Plan 3 defined benefit portion only.
*** Variable from 5% to 15% based on rate selected bythe member.
Basic Financial Statements, 4-40
2011 Comprehensive Annual Financial Report
Members participating in JBM:
City of Renton, Washington
Contributor PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer -State Agency*
9.75%
9.75%
9.75%**
Employer -Local Govt.*
7.25%
7.25%
7.25%**
Employee -State Agency
9.76%
9.10%
7.50%***
Emplovee-Locat Govt.
12.26%
11.60%
7.50%***
* The employer rates include the employer administrative expense
fee currently set at 0.16%.
** Plan 3 defined benefit portion only.
*** Minimum rate.
Both the City and the employees made the required contributions. The City's required
contributions for years ended December 31, were as follows:
Year
PERS Plan 1
PERS Plan 2
PERS Plan 3
2011
$ 44,457 $
1,496,892 $
261,528
2010
47,133
1,318,045
225,748
2009
71,860
1,826,401
312,631
Law Enforcement Officers' and Firefighters' Retirement System (LEOFF) Plans 1 and 2
Plan Description
LEOFF is a cost-sharing multiple -employer retirement system comprised of two separate
defined benefit plans. LEOFF participants who joined the system by September 30, 1977, are
Plan 1 members. Those who joined on or after October 1, 1977, are Plan 2 members.
Membership in the system includes all full-time, fully compensated; local law enforcement
officers, firefighters and as of July 24, 2005, those emergency medical technicians who were
given the option and chose LEOFF Plan 2 membership. LEOFF membership is comprised
primarily of non -state employees, with the Department of Fish and Wildlife enforcement
officers, who were first included prospectively effective July 27, 2003, being an exception.
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.
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. LEOFF retirement benefit provisions are
established in state statute and may be amended by the State Legislature.
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:
Basic Financial Statements, 4-41
2011 Comprehensive Annual Financial Report City of Renton, Washington
Percent of Final
Term of Service Average Salary
20 or more years 2.0%
10 but less than 20 years 1.5%
5 but less than 10 years 1.0%
The FAS is the basic monthly salary received at the time of retirement, provided a member has
held the same position or rank for 12 months preceding the date of retirement. Otherwise, it is
the average of the highest consecutive 24 months' salary within the last ten years of service. A
cost -of -living allowance is granted (indexed to the Consumer Price Index).
LEOFF Plan 2 members are vested after the completion of five years of eligible service. Plan 2
members may retire at the age of 50 with 20 years of service, or at age 53 with five years of
service, with an allowance of two percent of the FAS per year of service. The FAS is based on
the highest consecutive 60 months. Plan 2 members who retire prior to age 53 receive reduced
benefits. Benefits are actuarially reduced for each year that the benefit commences prior to age
53 and to reflect the choice of a survivor option. If the member has at least 20 years of service
credit and is age 50, the reduction is three percent for each year prior to age 53. There is no
cap on years of service credit; and a cost -of -living allowance is granted (indexed to the
Consumer Price Index), capped at three percent annually.
Membership in LEOFF consisted of the following as of the latest actuarial valuation date for the
plans of June 30, 2010:
Retirees and beneficiaries receiving benefits 9,647
Terminated plan members entitled to but notyet receiving benefits 782
Active plan members vested 13,420
Active plan members non -vested 3,656
Tota 1 27,505
Following is a summary of the number of government employers participating in LEOFF as of
June 30, 2010.
Number of Participating Employers
State School Counties/ Other Political Total
Plan Agencies Districts Municipalities Subdivisions Members
LEOFF 1 - 48 14 62
LEOFF 2 8 214 152 374
Total 8 262 166 436
Funding Policy
Starting on July 1, 2000, LEOFF Plan 1 employers and employees will contribute zero percent as
long as the plan remains fully funded. Employer and employee contribution rates are
developed by the Office of the State Actuary to fully fund the plan. LEOFF Plan 2 employer and
employees are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board. All
employers are required to contribute at the level required by state law. The Legislature, by
means of a special funding arrangement, appropriated money from the state General Fund to
Basic Financial Statements, 4-42
2011 Comprehensive Annual Financial Report City of Renton, Washington
supplement the current service liability and fund the prior service cost of LEOFF Plan 2 in
accordance with the requirements of the Pension Funding Council and the LEOFF Plan 2
Retirement Board. However, this special funding situation is not mandated by the state
constitution and this funding requirement could be returned to the employers by a change in
statute.
The required contribution rates expressed as a percentage of current -year covered payroll, as
of December 31, 2011, were as follows:
Contributor LEOFF Plan 1 LEOFF Plan 2
Employer* 0.16% 5.24%
Employee 0.00% 8.46%
* The employer rates include the employer admin-
istrative expense fee currently set at 0.16%.
Both the City and the employees made the required contributions. The City's required
contributions for years ended December 31, were as follows:
Year LEOFF Plan 1 LEOFF Plan 2
2011 $ 494 $ 1,334,049
2010 394 1,278,378
2009 487 1,258,217
Public Safety Employee's Retirement System (PSERS) Plan 2
Plan Description
PSERS is a cost-sharing multiple -employer retirement system comprised of a single defined
benefit plan, PSERS Plan 2. PSERS was created by the 2004 legislature and became effective
July 1, 2006.
PSERS Plan 2 membership includes full-time employees of a covered employer on or before July
1, 2006, who met at least one of the PSERS eligibility criteria, and elected membership during
the election period of July 1, 2006 to September 30, 2006; and those full-time employees, hired
on or after July 1, 2006 by a covered employer, that meet at least one of the PSERS eligibility
criteria.
A "covered employer" is one that participates in PSERS. Covered employers include: State of
Washington agencies: Department of Corrections, Department of Natural Resources, Parks and
Recreation Commission, Gambling Commission, Washington State Patrol, Liquor Control Board;
Washington state counties; and Washington state cities except for Seattle, Tacoma and
Spokane.
To be eligible for PSERS, an employee must work on a full-time basis and:
• have completed a certified criminal justice training course with authority to arrest,
conduct criminal investigations, enforce that criminal laws of Washington, and carry a
firearm as part of the job; or
Basic Financial Statements, 4-43
2011 Comprehensive Annual Financial Report City of Renton, Washington
• have primary responsibility to ensure the custody and security of incarcerated or
probationary individuals; or
• function as a limited authority Washington peace officer, as defined in RCW 10.93.020;
or
• have primary responsibility to supervise eligible members who meet the above criteria.
PSERS defined benefit retirement benefits are financed from a combination of investment
earnings and employer and employee contributions. PSERS retirement benefit provisions are
established in state statue and may be amended only by the State Legislature.
PSERS Plan 2 members are vested after the completion of five years of eligible service. Plan 2
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, with an allowance of two percent of the average final
compensation (AFC) per year of service. The AFC is the monthly average of the member's 60
consecutive highest-paid service credit months, excluding any severance pay such as lump -sum
payments for deferred sick leave, vacation or annual leave. Plan 2 retirees who retire prior to
the age of 60 receive reduced benefits. If retirement is at age 53 or older with at least 20 years
of service, a three percent per year reduction for each year between the age at retirement and
age 60 applies. There is no cap on years of service credit; and a cost -of -living allowance is
granted (based on the Consumer Price Index), capped at three percent annually.
Membership is PSERS consisted of the following as of the latest actuarial valuation date for the
plan of June 30, 2010:
Retirees and beneficiaries receiving benefits 7
Terminated plan members entitled to but notyet receiving benefits -
Active plan members vested -
Active plan members non -vested 4,210
Total 4,217
Following is a summary of the number of government employers participating in PSERS as of
June 30, 2010.
Number of Participating Employers
State School Counties/ Other Political Total
Plan Agencies Districts Municipalities Subdivisions Members
PSERS 11 65 1 77
Funding Policy
Each biennium, the state Pension Funding Council adopts PSERS 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. All employers are required to contribute at
the level established by the Legislature. The methods used to determine the contribution
requirements are established under state statute in accordance with Chapters 41.37 and 41.45
RCW.
Basic Financial Statements, 4-44
2011 Comprehensive Annual Financial Report City of Renton, Washington
The required contribution rates expressed as a percentage of current year covered payroll, as of
December 31, 2011 were as follows:
Contributor PSERS Plan 2
Employer* 8.86%
Employee 6.36%
* The employer rates include the
employer administrative expense
fee currently set at 0.16%.
Both the City and the employees made the required contributions. The City's required
contributions for years ended December 31, were as follows:
Year PSERS Plan 2
2011 $ 21,518
2010 64,909
2009 73,255
Firefighter's Pension
Plan Description
The Firefighter's Pension Plan is a closed, single -employer, defined benefit pension plan
established in accordance with RCW 41.18 and Renton Municipal Code. This plan provides
retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan
members and beneficiaries. This system was established for firefighters employed prior to
March 1, 1970, when the LEOFF retirement system was established. The retirement benefits
vest after 20 years of service. Members may retire after 25 years of service regardless of age,
and after age 50 with 20 or more years of service. At December 31, 2011, there were 34
members in the System:
Retirees and beneficiaries receiving benefits 31
Retirees and beneficiaries currently receiving full retirement through LEOFF 3
Active plan members vested -
Active plan members non -vested -
Total 34
Funding Policy
Under state law, the Firefighter's Pension Plan is provided an allocation of all monies received
by the state from taxes on fire insurance premiums; interest earnings; member contributions
made prior to the inception of LEOFF; and City contributions required to meet projected future
pension obligations. Costs of administering the Firefighter's Pension Plan are paid by the Plan.
For 2011, this cost was $8,762.
An actuarial valuation is done every two years and was completed as of January 1, 2011. The
Actuarial Valuation of Firefighters' Pension Fund table is reported in the Required Supplemental
Basic Financial Statements, 4-45
2011 Comprehensive Annual Financial Report City of Renton, Washington
Information section, and a recap of the Schedule of Funding Progress for the last five valuations
is as follows:
(rounded to thousands)
Valuation
Unfunded Actuarial
UAAL as a
Date
Actuarial Value
Actuarial Accrued
Accrued Liabilities
Funded Covered
Percentage of
January
of Assets
Liabilities
(UAAL)
Ratio Payroll
Covered Payroll
2001
$ 7,067
$ 6,780
$ (287)
104% $
n/a
2003
9,189
6,472
(2,717)
142%
n/a
2005
7,777
6,254
(1,523) *
124%
n/a
2007
7,847
6,364
(1,483)
123%
n/a
2009
8,941
6,517
(2,424)
137%
n/a
2011
8,940
3,914
(4,576)
217%
n/a
* A$29 decrease in the actuarial accrued liabilities was made afterthe City's financial reportwas published
and before the valuation was released.
Significant actuarial assumptions used in the January 1, 2011, valuation include:
Valuation date: January 1, 2011
Actuarial cost method: entry age normal
Amortization method: 30 -year, closed as of January 1, 2000
Remaining amortization period: 20 years
Asset valuation method: fair value
Actuarial assumptions: 1) investment rate of return — 4%; 2) projected salary increases —
3.75%; 3) inflation — 2.75%; and, 4) cost -of -living adjustments — based upon salary increase
assumption for FPF benefits, inflation assumption for LEOFF benefits.
The Annual Required Contribution (ARC) was computed using the Entry Age Normal Cost
Method. Under this method the projected benefits are allocated on a level basis as a
percentage of salary over the earnings of each individual between entry age and assumed exit
age. The amount allocated to each year is called the Normal Cost and the portion of the
Actuarial Present Value of all benefits not provided for by future Normal Cost payments is
called the Actuarial Accrued Liability. Since all members have already retired, the amount of
the Normal Cost is zero. The Unfunded Actuarial Accrued Liability (UAAL) is the Actuarial
Accrued Liability minus the actuarial value of the Fund's assets.
The following Annual Pension Cost and Net Pension Obligation table presents the annual
Normal Cost and the ARC as of January 1, 2011, assuming the UAAL is amortized over a closed
30 -year period beginning January 1, 2000.
Basic Financial Statements, 4-46
2011 Comprehensive Annual Financial Report City of Renton, Washington
Fiscal Year Ending
12/31/2009 12/31/2010 12/31/2011
Annual required contribution (ARC)
ARCatEOY
Interest
on NPO
ARC
Adjustment
Annual
Pension
Cost
Total
Employer
Contributions
Change in
NPO
I Annual Normal Cost Beginning of Year
$
-
$
-
$
[6=4-5]
2 Amortization of UAAL Beginning of Year
$ (113,541)
(166,142)
(44,035)
(166,142)
$ 59,068
(335,034)
3. Interest to End of Year*
(109,968)
(6,646)
(54,591)
(6,646)
59,777
(13,401)
4 ARC at End of Year [1+2+3]
$
(172,788)
$
(172,788)
$
(348,435)
5. Intereston Net Pension Obligation
$
(43,291)
$
(51,780)
$
(61,382)
6 Adjustment to ARC
(172,788)
(74,178)
(91,589)
(91,589)
107,068
(112,345)
7. Annual pension cost (APC) [4+5-6]
(348,435)
(141,901)
(112,345)
(132,979)
102,354
(297,472)
8. Employer Contributions**
NPO
70,327
Amort.
107,068
Ending
102,354
9. Change in Net Pension Obligation [7-8]
Balance
(212,228)
Factor**
(240,047)
Balance
(399,826)
1D Net Pension Obligation at Beginning of Year
$
(1,082,280)
$
(1,294,508)
$
(1,534,555)
11. Net Pension Obligation at End of Year [9+10]
$
(1,294,508)
$
(1,534,555)
$
(1,934,381)
* Assumed interest rate: 4.0% in 2009, 4.0% in 2010, and 4.0% in 2011.
** Employer contributions for pensions are total contributions to the fund net of disbursements for
medical and administrative expenses.
The Annual Development of Pension Cost is recapped as follows:
Fiscal Year
Ending
ARCatEOY
Interest
on NPO
ARC
Adjustment
Annual
Pension
Cost
Total
Employer
Contributions
Change in
NPO
Obligation (NPO)
[1]
[2]
[3=pyr7/9]
[4=1+2-3]
[5]
[6=4-5]
12/31/2006
$ (113,541)
$ (33,604)
(44,035)
$ (103,110)
$ 59,068
$ (162,178)
12/31/2007
(109,968)
(38,658)
(54,591)
(94,035)
59,777
(153,812)
12/31/2008
(109,968)
(46,349)
(67,070)
(89,247)
66,055
(155,302)
12/31/2009
(172,788)
(43,291)
(74,178)
(141,901)
70,327
(212,228)
12/31/2010
(172,788)
(51,780)
(91,589)
(132,979)
107,068
(240,047)
12/31/2011
(348,435)
(61,382)
(112,345)
(297,472)
102,354
(399,826)
Fiscal Year
NPO
Amort.
Amort. Of
Ending
Ending
Balance
(Gain)/Loss
Factor**
(Gain)/Loss
Balance
[7=6+pryr7]
[8=1-5]
[9]
[10=pyrll/9]
[11=7]
12/31/2006
$ (773,166)
$ (172,609)
13.87500
$ (44,035)
$ (773,166)
12/31/2007
(926,978)
(169,745)
14.16300
(54,591)
(926,978)
12/31/2008
(1,082,280)
(176,023)
13.82120
(67,069)
(1,082,280)
12/31/2009
(1,294,508)
(243,115)
14.59030
(74,178)
(1,294,508)
12/31/2010
(1,534,555)
(279,856)
14.13390
(91,589)
(1,534,555)
12/31/2011
(1,934,381)
(450,789)
13.65930
(112,345)
(1,934,381)
Three year trend information is recapped as follows:
Basic Financial Statements, 4-47
Annual
Contribution as a
Net Pension
Fiscal Year Ending
Pension Cost (APC)
Percentage of APC
Obligation (NPO)
December31,2009
$ (141,901)
N/A
$ (1,294,508)
December 31, 2010
(132,979)
N/A
(1,534,555)
December 31, 2011
(297,472)
N/A
(1,934,381)
Basic Financial Statements, 4-47
2011 Comprehensive Annual Financial Report City of Renton, Washington
Employees are not required to make contributions. The contributions to the System for 2011
include $115,054 from fire insurance premiums and $355,380 of investment income. Benefits
and refunds of the defined benefit pension plan are recognized when due and payable in
accordance with the terms of the plan. For 2011, $280,888 was paid for benefit payments and
$3,938 for medical payments.
The Net Pension Obligation decreased $399,826 to ($1,934,381) and is included as a non-
current asset, in the City of Renton's Governmental -wide Statement of Net Assets.
NOTE 7. OTHER POST EMPLOYMENT BENEFITS
Plan Description
In accordance with the Revised Code of Washington (RCW) 41.26, the City provides lifetime
medical care for members of the Law Enforcement Officers and Firefighters (LEOFF) retirement
system hired prior to October 1, 1977. The plan is a closed, single -employer defined benefit
healthcare plan administered by the City.
Under authorization of the LEOFF Disability Board, direct payment is made for other retiree
medical expenses not covered by standard benefit plan provisions. Financial reporting for the
LEOFF retiree healthcare plan is included in the City's Comprehensive Annual Financial Report.
The plan does not issue stand-alone financial statements. An actuarial valuation financial
report is prepared by Nicolay Consulting, and may be obtained by contacting the City of Renton,
Finance Division, 1055 South Grady Way, Renton, WA 98057.
As of December 31, 2011, there were 96 retirees and 3 active employees.
Funding Policy
Funding for LEOFF retiree healthcare costs is provided entirely by the City as required by RCW.
The City's funding policy is based upon pay-as-you-go financing requirements. The plan
member is not required to contribute to the cost of the plan.
Annual OPEB Cost and Net OPEB Obligation
The City's annual other postemployment benefit (OPEB) cost is calculated based on the annual
required contribution (ARC), an amount actuarially determined in accordance with the
parameters of GASB Statement 45.
The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the
normal cost each year and to amortize any unfunded actuarial liabilities over a period not to
exceed thirty years. The following table shows the components of the City's annual OPEB cost
for the year, the amount actually contributed to the plan, and changes in the City's net OPEB
obligation.
Basic Financial Statements, 4-48
2011 Comprehensive Annual Financial Report
City of Renton, Washington
Fiscal Year Ending
12/31/2009 12/31/2010 12/31/2011
Annual required contribution (ARC)
Annual Normal Cost (BOY) $ 20,000 $ 54,262 $ 54,262
Amortization of UAAL (BOY)* 1,903,621 1,679,491 1,704,544
Interest to End of Year -
ARC at end of year
$ 1,923,621 $ 1,733,753 $ 1,758,806
Interest on Net OPEB Obligation $ 24,311 $ 62,627 $ 78,799
Adjustment to ARC (35,785) (93,961) (120,635)
Annual OPEB cost
1,912,147 1,702,419 1,716,970
Employer Contributions (1,104,351) (983,868) (875,699)
Change in NetOPEB Obligation 807,796 718,551 841,271
Net OPEB Obligation at BOY $ 757,876 $ 1,565,672 $ 2,284,223
Net OPEB Obligation at EOY $ 1,565,672 $ 2,284,223 $ 3,125,494
* Unfunded Actuarial Accrued Liability (UAAL)
The Net OPEB Obligation of $3,125,494 is included as a noncurrent liability on the City of
Renton's Governmental -wide Statement of Net Assets.
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and
the net OPEB obligation for 2011 and the two preceding years were as follows:
Funded Status and Funding Progress
As of January 1, 2011, the most recent actuarial valuation date, the plan was 0% funded. The
accrued liability for benefits was $27,835,211 and the actuarial value of the assets was $0
resulting in an unfunded actuarial accrued liability (UAAL) of $27,835,211. The covered payroll
was $434,132, and the ratio of the UAAL to the covered payroll was 6411.70 percent. Net
assets of $5,342,695 restricted in the Insurance Fund for the purpose of funding a portion of
the UAAL.
Actuarial valuations involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events far into the future. Amounts determined regarding the
funded status of the plan and the annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are
made about the future.
Basic Financial Statements, 4-49
Percentage of
Annual
Employer
OPEB Cost
Net OPEB
Year
OPEB Cost
Contribution
Contributed
Obligation
2009
$ 1,912,147
$ 1,104,351
57.75%
$ 1,565,672
2010
1,702,419
983,868
57.79%
2,284,223
2011
1,716,970
875,699
51.00%
3,125,494
Funded Status and Funding Progress
As of January 1, 2011, the most recent actuarial valuation date, the plan was 0% funded. The
accrued liability for benefits was $27,835,211 and the actuarial value of the assets was $0
resulting in an unfunded actuarial accrued liability (UAAL) of $27,835,211. The covered payroll
was $434,132, and the ratio of the UAAL to the covered payroll was 6411.70 percent. Net
assets of $5,342,695 restricted in the Insurance Fund for the purpose of funding a portion of
the UAAL.
Actuarial valuations involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events far into the future. Amounts determined regarding the
funded status of the plan and the annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are
made about the future.
Basic Financial Statements, 4-49
2011 Comprehensive Annual Financial Report City of Renton, Washington
The schedule of funding progress, presented as required supplementary information following
the notes to the financial statements, presents multi-year trend information that shows
whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial liabilities for benefits.
Actuarial Methods and Assumptions
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, consistent with the long-term perspective of the calculations.
The January 1, 2011 actuarial valuation report was prepared using the projected unit credit
method. The actuarial assumptions used included a 4.00% discount rate, which is based upon
the long-term investment yield on the investments that are expected to be used to finance the
payment of benefits. The following health care trend rate assumptions were used:
Expected Annual Increase in Health Care Cost
The UAAL is being amortized based on a level dollar amortization over a closed 30 year -period
that began in 2008 at the assumed discount rate.
NOTE 8. CONTINGENCIES
Litigation
The City has recorded in its financial statements all material liabilities, including an estimate for
situations that are not yet resolved but where, based on available information, management
believes it is probable that the City will have to make payment. In the opinion of management,
the City's insurance policies and/or self-insurance reserves are adequate to pay all known or
pending claims.
Contingencies under Grant Provisions
The City participates in a number of federal and state assisted programs. These grants are
subject to audit by the grantors of their representatives. Such audits could result in requests
for reimbursement to grantor agencies for expenditures disallowed under the terms of the
grants. The City's management believes that such disallowances, if any, will be immaterial.
Basic Financial Statements, 4-50
Medicare
Nursing
Dental and
Year
Medical
Part B
Home
Vision
2012
7.6%
7.6%
4.0%
2.0%
2013
7.3%
7.3%
4.0%
2.0%
2014
7.0%
7.0%
4.0%
2.0%
2015
6.7%
6.7%
4.0%
2.0%
2016
6.4%
6.4%
4.0%
2.0%
2017
6.1%
6.1%
4.0%
2.0%
2018
5.8%
5.8%
4.0%
2.0%
2019+
5.5%
5.5%
4.0%
2.0%
The UAAL is being amortized based on a level dollar amortization over a closed 30 year -period
that began in 2008 at the assumed discount rate.
NOTE 8. CONTINGENCIES
Litigation
The City has recorded in its financial statements all material liabilities, including an estimate for
situations that are not yet resolved but where, based on available information, management
believes it is probable that the City will have to make payment. In the opinion of management,
the City's insurance policies and/or self-insurance reserves are adequate to pay all known or
pending claims.
Contingencies under Grant Provisions
The City participates in a number of federal and state assisted programs. These grants are
subject to audit by the grantors of their representatives. Such audits could result in requests
for reimbursement to grantor agencies for expenditures disallowed under the terms of the
grants. The City's management believes that such disallowances, if any, will be immaterial.
Basic Financial Statements, 4-50
2011 Comprehensive Annual Financial Report
City of Renton, Washington
Bond Indentures
The City is in compliance with all significant bond indentures and restrictions.
Leases
The City also leases office facilities for the City Attorney's office. Total cost for this lease was
$90,000 for the year ended December 31, 2010. The lease term ends December 31, 2011. The
City has extended the lease for one (1) additional year. The future minimum lease payments
for 2012 are $90,000.
Construction Commitments
Refer to Note 5.
NOTE 9. RISK MANAGEMENT
The City of Renton is exposed to various risks of loss related to tort; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters. The
City of Renton protects itself against unforeseen losses by utilizing a three -pronged risk
management approach. First, the City self -funds first level losses through its Insurance Fund.
Second, excess insurance is purchased to cover medium and large losses. 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. An analysis of the self-insurance retention levels, limits of insurance,
and claims administrator for the major types of coverage are as follows:
Basic Financial Statements, 4-51
2011 Comprehensive Annual Financial Report
City of Renton, Washington
Airport liability — Expires
Risk
$100,000,000
Ace Property &
1/01/2012
Retention
Casualty
Type of Coverage
Occurrence
Aggregate Amount
Carrier
Property— Expires
$25,000
$500,000,000 (per
WA Cities Ins
01/01/2012
$350,000
occurrence subject to
Authority
Expires 1/01/2012
annual aggregate &
Excess Employee health —
$175,000
sub -limits)
Symetra
Liability— Expires
$250,000
$20,000,000
WA Cities Ins
01/01/2012
(per occurrence)
Authority
Auto Liability— Expires
ACV or Replacement
WA Cities Ins
01/01/2012
$25,000
Cost; per Occurrence
Authority
Public Officials (E&0) —
$250,000
$15,000,000
WA Cities Ins
Expires 01/01/2012
Authority
Equipment breakdown —
$5,000*
$50,000,000
Zurich
Expires 1/01/2012
Crime — Expires 12/31/2012
$10,000
$2,500,000
National Union
Fire
Airport liability — Expires
0
$100,000,000
Ace Property &
1/01/2012
Casualty
Underground storage tank—
$25,000
$2,000,000
Colony Insurance
Expires 1/01/2012
Co.
Excess Worker's comp —
$350,000
$1,000,000
Safety National
Expires 1/01/2012
Excess Employee health —
$175,000
N/A
Symetra
Expires 1/01/2013
* There is a 4 -hour utility interruption clause, prior to the deductible becoming applicable
For policy term January 1, 2012 to January 1, 2013, there were no reductions in insurance
coverage and an increase in premiums; however, settlements for the last three years have not
exceeded insurance coverage.
The City of Renton is a member of the Washington Cities Insurance Authority (WCIA).
Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal
Cooperation Act), nine cities originally formed WCIA on January 1, 1981. WCIA was created for
the purpose of providing a pooling mechanism for jointly purchasing insurance, jointly self-
insuring, and/or jointly contracting for risk management services. WCIA has a total of 150
members.
New members initially contract for a three-year term and thereafter automatically renew on an
annual basis. A one-year withdrawal notice is required before membership can be terminated.
Termination does not relieve a former member from its unresolved loss history incurred during
membership.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes
general, automobile, police, public officials' errors or omissions, stop gap, and employee
benefits liability. Limits are $4 million per occurrence self insured layer, and $16 million per
occurrence in the re -insured excess layer. The excess layer is insured by the purchase of
reinsurance and insurance and is subject to aggregate limits. Total limits are $20 million per
Basic Financial Statements, 4-52
2011 Comprehensive Annual Financial Report
City of Renton, Washington
occurrence subject to aggregate sublimits in the excess layers. The Board of Directors
determines the limits and terms of coverage annually.
Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler
and machinery are purchased on a group basis. Various deductibles apply by type of coverage.
Property insurance and auto physical damage are self-funded from the members' deductible to
$500,000 for all perils other than flood and earthquake, and insured above that amount by the
purchase of insurance.
In-house services include risk management consultation, loss control field services, claims and
litigation administration, and loss analyses. WCIA contracts for the claims investigation
consultants for personnel issues and land use problems, insurance brokerage and lobbyist
services.
WCIA is fully funded by its members, who make annual assessments on a prospectively rated
basis; as determined by an outside, independent actuary. The assessment covers loss, loss
adjustment, and administrative expenses. As outlined in the interlocal, WCIA retains the right to
additionally assess the membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by
investment of WCIA's assets in financial instruments which comply with all State guidelines.
These revenues directly offset portions of the membership's annual assessment.
A Board of Directors governs WCIA, which is comprised of one designated representative from
each member. The Board elects an Executive Committee and appoints a Treasurer to provide
general policy direction for the organization. The WCIA Executive Director reports to the
Executive Committee and is responsible for conducting the day to day operations of WCIA.
The City's Risk Management Program is administered by the Human Resources and Risk
Management Administrator, with claims being processed by the independent claims
administrators noted above. As of December 31, 2011, the City had accrued the following
amounts for outstanding claims:
Total Claims Payable
Coverage 12/31/2011
Property &liability $ 641,640
Worker's compensation 613,655
Employee health 1,186,900
TOTAL $ 2,442,195
Basic Financial Statements, 4-53
2011 Comprehensive Annual Financial Report
City of Renton, Washington
NOTE 10. INTERFUND TRANSACTIONS
Interfund transactions are classified as follows:
1. Services Provided — Transactions that would be treated as revenues, expenditures, or
expenses if they involve external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City
of Renton.
2. Transfers — Transactions to support the operations of other funds are recorded as
"Transfers" and classified with "Other Financing Sources or Uses" in the fund
statements. Transfers between governmental or proprietary funds are netted as part of
the reconciliation to the Government -wide financial statements.
3. Contributions — Contributions to the capital of enterprise or internal service funds,
transfers of capital assets between proprietary and governmental funds, transfers to
establish or reduce working capital in other funds, and transfers remaining balances
when funds are closed are classified non-operating revenue.
4. Loans/Advances — Loans between funds are classified as interfund loans receivable and
payable or as advances to and from other funds in the fund statements. Interfund loans
do not affect total fund equity, but advances to other funds are offset by a reservation
of fund equity. Loans and advances are subject to elimination upon consolidation.
Basic Financial Statements, 4-54
Property &
Worker's
Employee
2011
Liability
Compensation
Health
Totals
IBNR claims at beginning of the year
$ 697,531
$ 696,880
$ 1,899,079 $
3,293,490
Currentyearand changes in estimates
1,375,182
664,764
8,961,050
11,000,996
Claims payments
(1,431,073)
(747,989)
(9,673,229)
(11,852,291)
IBNR claims at end of the year
$ 641,640
$ 613,655
$ 1,186,900 $
2,442,195
Property &
Worker's
Employee
2010
Liability
Compensation
Health
Totals
I BNR cl a i ms at begi n ni ng of the yea r
$ 332,713
$ 830,652
$ 1,835,494 $
2,998,859
Currentyearand changes in estimates
1,961,920
738,167
10,166,174
12,866,261
Claims payments
(1,597,102)
(871,939)
(10,102,589)
(12,571,630)
IBNR claims at end of the year
$ 697,531
$ 696,880
$ 1,899,079 $
3,293,490
NOTE 10. INTERFUND TRANSACTIONS
Interfund transactions are classified as follows:
1. Services Provided — Transactions that would be treated as revenues, expenditures, or
expenses if they involve external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City
of Renton.
2. Transfers — Transactions to support the operations of other funds are recorded as
"Transfers" and classified with "Other Financing Sources or Uses" in the fund
statements. Transfers between governmental or proprietary funds are netted as part of
the reconciliation to the Government -wide financial statements.
3. Contributions — Contributions to the capital of enterprise or internal service funds,
transfers of capital assets between proprietary and governmental funds, transfers to
establish or reduce working capital in other funds, and transfers remaining balances
when funds are closed are classified non-operating revenue.
4. Loans/Advances — Loans between funds are classified as interfund loans receivable and
payable or as advances to and from other funds in the fund statements. Interfund loans
do not affect total fund equity, but advances to other funds are offset by a reservation
of fund equity. Loans and advances are subject to elimination upon consolidation.
Basic Financial Statements, 4-54
2011 Comprehensive Annual Financial Report
City of Renton, Washington
The following is a recap of interfund balances for 2011 at the fund level for the purpose of
reclassifying revenue/expenditures between funds:
At the government wide level, the following interfund balances occurred for the purpose of
reclassifying revenue/expenditures between activities:
Fund
Due From
Other Funds
Due From
General Fund
Due To
Fund
Transportation Mitigation Fund
Other Funds
-
Other Funds
General Fund
$
44,063
$
73,545
General Debt Service Fund
I $ 12,515
-
-
Tranportation Impact Fund
$
747
$
-
Municipal Facilities Fund
10,822
1,019
Capital Improvement Fund
-
39,735
Subtotal Governmental Funds
$
55,631
$
114,298
Ai rp o rt
I $
7,441
$
-
Solid Waste
I $
38,025
$
-
Waterworks Utility Fund
-
43,100
Subtotal Enterprise Funds
$
45,466
$
43,100
Information Technology
17,500
-
Facilities
38,801
Subtotal Internal Service Funds
$
56,301
$
-
TOTAL
$
157,398
$
157,398
At the government wide level, the following interfund balances occurred for the purpose of
reclassifying revenue/expenditures between activities:
Fund
Due From
Other Funds
Due To
Other Funds
General Fund
$ 4,328
$ 7,441
Transportation Mitigation Fund
747
-
Airport
7,441
$
Waterworks Utility Fund
-
5,075
TOTAL
I $ 12,515
$ 12,515
The following is a recap of interfund loans for 2011 at the fund level for capital improvement
purposes:
Basic Financial Statements, 4-55
Interfund Loans
Interfund Loans
Fund
Receivable
Payable
General Fund
$
2,216,483
$
-
Capital Improvement Fund
-
700,000
Subtotal Governmental Funds
$
2,216,483
$
700,000
Golf Course
-
1,516,483
Airport
-
294,742
Waterworks Utility Fund
294,742
-
Subtotal Enterprise Funds
I $
294,742
$
1,811,225
TOTAL
I $
2,511,225
$
2,511,225
Basic Financial Statements, 4-55
2011 Comprehensive Annual Financial Report
City of Renton, Washington
At the government wide level, only one interfund loan occurred for capital improvement:
The following is a recap of interfund transfers for 2011 at the fund level:
Interfund Loans
Interfund Loans
Fund
Receivable
Payable
General Fund
$ 1,516,483
$ -
Golf Course
-
1,516,483
TOTAL
I $ 1,516,483
$ 1,516,483
The following is a recap of interfund transfers for 2011 at the fund level:
Basic Financial Statements, 4-56
Tranfers
Transfers
Fund
In
Out
General Fund
$
15,420
$
2,268,329
Arterial Street Fund
-
620,000
One PerfcentforArt Fund
-
-
General Debt Service Fund
529,056
Community Services Impact Mitigation Fund
61,352
-
Fire Impact Mitigation Fund
-
529,056
Transportation Impact Mitigation Fund
-
650,000
Municipal Facilities Fund
2,010,822
76,772
Capital Improvement Fund
1,270,000
-
Subtotal Governmental Funds
$
3,886,650
$
4,144,157
Airport
-
8,848
Golf Course
656
Solid Waste
1,106
Waterworks Utility Fund
26,844
Subtotal Enterprise Funds
$
-
$
37,454
Equipment Rental
23,526
-
Information Technology
119,122
-
Facilities
37,782
523
Subtotal Internal Service Funds
$
180,430
$
523
Firemen's Pension Trust Fund
115,054
-
TOTAL
$
4,182,134
$
4,182,134
Basic Financial Statements, 4-56
2011 Comprehensive Annual Financial Report
At the government wide level, the following transfers occurred:
City of Renton, Washington
Fund
Tranfers
In
Transfers
Out
Airport
$
$ 8,848
Golf Course
Judicial Public Safety Debt service OPEB liability
656
Solid Waste
Recreation
1,106
Waterworks Utility Fund
$ 31,600 $ 577,252 $ 1,327,666 $ - $
26,844
Equipment Rental
23,526
-
Information Services
13,928
-
TOTAL
$ 37,454
$ 37,454
NOTE 11. NET ASSETS
The Government -wide and business type fund financial statements utilize a net asset
presentation. Net assets are the difference between assets and liabilities. Net assets are
categorized as investments in capital assets (net of related debt), restricted, and unrestricted.
A. Investment in Capital Assets (net of related debt) is intended to reflect the portion of net
assets that are associated with non -liquid, capital assets less outstanding capital asset
related debt.
The net related debt is the debt less the outstanding liquid assets and any associated
unamortized costs.
B. Restricted net assets are liquid assets (generated from revenues and not bond proceeds),
which have third party (statutory, bond covenant, or granting agency) limitations on their
use. The City would typically use restricted net assets first, as appropriated opportunities
arise, but reserve the right to selectively defer the use thereof to a future project or
replacement equipment acquisition.
Restricted governmental activity net assets are as follows:
Unrestricted net assets represent unrestricted liquid assets. Unrestricted Governmental
Activities have committed and assigned designations that reflect the City Council and
management's plans and commitments to expend resources for certain purposes in future
periods. Funds with committed designations reflect amounts constrained by the City
Council, either through formal budget adoption or other purposes formally approved by the
Basic Financial Statements, 4-57
Purpose
Culture and
Fund
Judicial Public Safety Debt service OPEB liability
Totals
Recreation
General
$ 31,600 $ 577,252 $ 1,327,666 $ - $
$ 1,936,518
General Debt
- - - 1,032,361
1,032,361
Municipal Facilities
18,120,553 -
18,120,553
Insurance
- - 5,342,695
5,342,695
Total Restricted Net Assets -
$ 31,600 $ 577,252 $ 19,448,219 $ 1,032,361 $ 5,342,695
$ 26,432,126
Governmental Actvil
Unrestricted net assets represent unrestricted liquid assets. Unrestricted Governmental
Activities have committed and assigned designations that reflect the City Council and
management's plans and commitments to expend resources for certain purposes in future
periods. Funds with committed designations reflect amounts constrained by the City
Council, either through formal budget adoption or other purposes formally approved by the
Basic Financial Statements, 4-57
2011 Comprehensive Annual Financial Report
City of Renton, Washington
Council. Amounts with assigned designations reflect all amounts remaining in
governmental funds, other than the general fund, not classified as nonspendable, restricted
or committed. Assigned amounts also include year-end encumbrances that have received
approval from the City Council and re -appropriated in the following year's carry forward
budget. The City's financial policies require a maximum amount of 12% and minimum of
8% fund balance to remain in the general fund for cash flow purposes.
Unrestricted governmental net assets are classified as follows:
NOTE 12. PRIOR PERIOD ADJUSTMENTS
Business -Type Activities
A prior period adjustment of $1,066,493 was made to reduce revenue and receivable balances
for Special Assessment District principal. This amount is for outstanding principal not due to
the City until the effected property owners take action to connect to the wastewater system. In
prior years this outstanding amount was recorded as a revenue and receivable.
NOTE 13. LONGTERM DEBT
The City of Renton's long-term debt consists of General Obligation Debt, repaid mainly from
general governmental revenue sources, Proprietary Debt, repaid from proprietary revenues and
compensated absences/other post employment benefits. These debts are accounted for in the
following areas: 1) The outstanding general obligation debt is reported in the Government -
wide financial statements; 2) The repayment, or debt service of the same, is recorded in the
Debt Service Funds; and, 3) The proprietary debt liability and repayment of the same are
reported in individual Proprietary Funds. Compensated absences and other post employment
benefits are generally liquidated mainly from the general fund and to a lesser extent, the
internal service funds.
Basic Financial Statements, 4-58
General Fund
Municipal Facilities
Fund
Capital
Improvement Fund
Other
Governmental
Funds
Total
Committed
Capital
$ -
$ 3,081,070
$ 3,194,726 $
1,007,024
$ 7,282,820
Assigned
Public Safety
702,811
-
-
-
702,811
Transportation
1,505,808
254,974
1,760,782
Economic Environment
1,819,380
663,558
2,482,938
Culture and Recreation
133,857
212,470
346,327
General Government
9,650,402
-
-
99,030
9,749,432
Capital
-
1,725,948
1,111,662
2,946,436
1 5,784,046
Total Unrestricted Net Assets -
Governmental Activities
$ 13,812,258
$ 4,807,018
$ 4,306,388 $
5,183,492
$ 28,109,156
NOTE 12. PRIOR PERIOD ADJUSTMENTS
Business -Type Activities
A prior period adjustment of $1,066,493 was made to reduce revenue and receivable balances
for Special Assessment District principal. This amount is for outstanding principal not due to
the City until the effected property owners take action to connect to the wastewater system. In
prior years this outstanding amount was recorded as a revenue and receivable.
NOTE 13. LONGTERM DEBT
The City of Renton's long-term debt consists of General Obligation Debt, repaid mainly from
general governmental revenue sources, Proprietary Debt, repaid from proprietary revenues and
compensated absences/other post employment benefits. These debts are accounted for in the
following areas: 1) The outstanding general obligation debt is reported in the Government -
wide financial statements; 2) The repayment, or debt service of the same, is recorded in the
Debt Service Funds; and, 3) The proprietary debt liability and repayment of the same are
reported in individual Proprietary Funds. Compensated absences and other post employment
benefits are generally liquidated mainly from the general fund and to a lesser extent, the
internal service funds.
Basic Financial Statements, 4-58
2011 Comprehensive Annual Financial Report
Outstanding debt issues as of December 31, 2011 are as follows:
City of Renton, Washington
Basic Financial Statements, 4-59
Issued
Maturity
Original Issued
Type of Debt
Interest Rates
Date
Date
Amount
GOVERNMENTAL DEBT:
General Obligation Bonds:
Limited:
2002 GO Bonds
2.50%-5.00%
07/15/2002
12/01/2022
$ 3,895,000
2006 GO Bonds
4.25%-5.00%
08/08/2006
12/01/2028
17,980,000
2010 GO Refunding Bonds
3.00%-4.50%
05/11/2010
12/01/2021
6,170,000
2011 GO Library Bonds
2.00%-5.00%
08/02/2011
12/01/2022
16,715,000
2011 GO Refunding Bonds
2.00%-5.00%
09/21/2011
12/01/2017
9,425,000
SUBTOTAL LIMITED GO
54,185,000
Other Miscellaneous debt - Intergovernmental,
Backed by full faith and credit of the City:
2009 FD 40 Loan for acquisition of FS13
3.75%
03/01/2009
09/01/2028
6,798,085
2009 (A) SCORE Tax Exempt
4.00%-5.00%
11/04/2009
01/01/2022
2,953,800
2009 (13) SCORE GABS
3.00%-6.62%
11/04/2009
01/01/2039
28,090,800
2010 GO Valley Comm Refunding Bonds
3.00%-4.00%
04/05/2010
12/01/2015
1,065,000
SUBTOTAL MISCELLANEOUS
38,907,685
TOTAL GOVERNMENTAL -TYPE DEBT ISSUANCE
93,092,685
BUSINESS -TYPE DEBT:
Revenue Bonds:
1998 Water/Sewer Refunding
4.46%
03/01/1998
06/01/2013
6,120,000
1999 Golf System Refunding
4.96%
04/01/1999
12/01/2015
5,040,000
2002 Water/Sewer
4.80%
07/01/2002
12/01/2022
11,980,000
2003 Water/Sewer Refunding
3.20%
09/15/2003
06/01/2013
8,035,000
2004 Water/Sewer
4.33%
11/01/2004
12/01/2027
10,335,000
2007 Water/Sewer
4.00%-5.00%
11/06/2007
12/01/2022
1,430,000
2007 Water/Sewer Refunding
4.00%-5.00%
11/06/2007
12/01/2022
8,320,000
2008 Water/Sewer Revenue (a)
4.17%
01/04/2008
12/01/2027
9,975,000
2008 Water/Sewer Revenue (b)
4.17%
01/04/2008
12/01/2016
2,035,000
TOTAL REVENUE BONDS
63,270,000
Public Works Trust Fund Loans:
Sierra Heights Sewer Improvements
2.00%
01/20/1992
07/01/2012
888,462
Central Renton Sewer Replacement
1.00%
05/04/1993
07/01/2015
1,631,800
East Renton Interceptor
1.00%
06/07/1993
07/01/2013
2,542,704
Dayton Avenue NE
2.00%
05/12/1994
07/01/2014
96,958
NE 27th/Aberdeen Drainage Improvements
1.00%
05/15/1995
07/01/2015
731,000
East Kennydale Interceptor
2.00%
01/24/1998
07/01/2016
2,093,740
Honeycreek Interceptor
2.00%
12/04/1995
07/01/2016
1,840,568
Corrosion Control Treatment Facilities
1.00%
01/06/1997
07/01/2017
1,106,000
Maplewood Water Treatment Improvement
0.50%
01/22/2002
07/01/2021
567,831
Construct CT Pipeline fo r W e l l s
0.50%
11/05/2002
07/01/2022
814,527
Maplewood Water Treatment Improvement
0.50%
06/03/2004
07/01/2024
5,150,000
TOTAL PUBLIC WORKS TRUST FUND LOANS
17,463,590
TOTAL BUSINESS -TYPE DEBT ISSUANCE
80,733,590
TOTAL AMOUNT ISSUED ON OUTSTANDING DEBT AS OF DECEMBER 31, 2011
$ 173,826,275
Basic Financial Statements, 4-59
2011 Comprehensive Annual Financial Report
Outstanding debt additions and retirements are summarized as follows:
City of Renton, Washington
Basic Financial Statements, 4-60
Beginning Balance
Ending Balance Due Within One
General Governmental Debt
01/01/2011
Additions
Deductions
12/31/2011
Year
Limited General Obligation Debt
2001 GO Refunding Bonds
$ 11,350,000
$
$11,350,000
$ - $
-
2002 GO Bonds
2,690,000
175,000
2,515,000
200,000
2006 GO Bonds
16,355,000
585,000
15,770,000
610,000
2010 GO Refunding Bonds
6,030,000
5,000
6,025,000
5,000
2011 GO Library Bonds
-
16,715,000
-
16,715,000
1,375,000
2011 GO Refunding Bonds
-
9,425,000
160,000
9,265,000
1,450,000
Unamortized (discount)/premium
565,612
2,268,169
130,374
2,703,407
-
Total Limited GO Bonds
36,990,612
28,408,169
12,405,374
52,993,407
3,640,000
Other Miscellaneous debt - Intergovernmental,
Backed with full faith and credit of the City
2009 FD 40 Loan for acquisition of FS13
6,423,275
-
262,236
6,161,039
271,517
2009 (A) SCORE Tax Exempt
2,953,800
-
2,953,800
-
2009 (B) SCORE BABS
28,090,800
-
28,090,800
-
2010GOVaIley Comm. Refunding Bonds
1,044,000
196,000
848,000
201,000
Total Miscellaneous
38,511,875
-
458,236
38,053,639
472,517
Total General Obligation Debt
75,502,487
28,408,169
12,863,610
91,047,046
4,112,517
Other:
Employee Leave Benefits (Comp. Absences)
5,248,382
3,020,502
2,991,578
5,277,306
3,008,064
Other post -employment benefits payable
2,284,223
1,716,970
875,699
3,125,494
-
Total Governmental Debt
$ 83,035,092
$ 33,145,640
$16,730,887
$ 99,449,846 $
7,120,581
Basic Financial Statements, 4-60
2011 Comprehensive Annual Financial Report
City of Renton, Washington
Outstanding debt additions and retirements are summarized as follows (continued):
DEEP DISCOUNT DEBT
As of December 31, 2011, the City of Renton has no deep discount debt outstanding.
SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMMITMENT
As of December 31, 2011, the City of Renton has no special assessment debt outstanding.
DEBT LIMIT CAPACITIES
State law provides that debt cannot be incurred in excess of the following percentages of the
value of the taxable property of the City: 1.5 percent without a vote of the people provided the
indebtedness with a vote is 1 percent or less; 2.5 percent with a vote of the people; 5.0 percent
with a vote of the people, provided the indebtedness in excess of 2.5 percent is for utilities; and
Basic Financial Statements, 4-61
Beginning Balance
Ending Balance Due Within One
Business -Type Debt
01/01/2011
Additions
Deductions
12/31/2011
Year
Revenue Bonds:
1998 Water/Sewer Refunding
$ 1,695,000
$
$ 650,000
$ 1,045,000 $
685,000
1999 Golf System Refunding
-
-
-
-
2002 Water/Sewer Bond
2,035,000
1,010,000
1,025,000
1,025,000
2003 Water/Sewer Refunding
1,160,000
355,000
805,000
390,000
2004 Water/Sewer Bond
10,335,000
-
10,335,000
-
2007 Water/Sewer Bond
1,430,000
-
1,430,000
-
2007 Water/Sewer Bond (02)
8,290,000
15,000
8,275,000
15,000
2008 Water/Sewer Bond (a)
9,975,000
-
9,975,000
-
2008 Water/Sewer Bond (b)
2,035,000
2,035,000
Unamortized (discount)/premium
(35,361)
(36,942)
1,581
-
Total Revenue Bonds
36,919,639
-
1,993,058
34,926,581
2,115,000
Public Works Trust Fund Loans:
Sierra Heights Sewer Improvements
51,286
25,642
25,643
25,641
Central Renton Sewer Replacement
366,487
87,483
279,003
87,483
East Renton Interceptor
403,710
134,570
269,140
134,570
Dayton Avenue NE
20,412
5,103
15,309
5,103
NE 27th/Aberdeen Drainage Improvement
212,949
42,590
170,359
42,590
East Kennydale Interceptor
701,127
116,855
584,273
116,855
Honeycreek Interceptor
581,232
96,872
484,360
96,872
Corrosion Control Treatment Facilities
345,498
49,357
296,141
49,357
Maplewood Water Improvement
333,310
30,301
303,009
30,301
Const. CF Pipeline for Wells
514,438
42,870
471,568
42,870
Maplewood Water Improvements
3,817,059
272,647
3,544,412
272,647
Total Public Work Trust Fund Loan
7,347,508
904,290
6,443,218
904,289
Other:
Golf Course Cart Operating Lease
10,058
-
10,058
-
-
Employee Leave Benefits (Comp.Absences)
663,488
184,527
148,351
699,664
160,834
Total Business -Type Debt
44,940,693
184,527
3,055,757
42,069,463
3,180,123
GRAND TOTALS
$ 127,975,785
$ 33,330,168
$19,786,644
$141,519,309 $
10,300,704
DEEP DISCOUNT DEBT
As of December 31, 2011, the City of Renton has no deep discount debt outstanding.
SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMMITMENT
As of December 31, 2011, the City of Renton has no special assessment debt outstanding.
DEBT LIMIT CAPACITIES
State law provides that debt cannot be incurred in excess of the following percentages of the
value of the taxable property of the City: 1.5 percent without a vote of the people provided the
indebtedness with a vote is 1 percent or less; 2.5 percent with a vote of the people; 5.0 percent
with a vote of the people, provided the indebtedness in excess of 2.5 percent is for utilities; and
Basic Financial Statements, 4-61
2011 Comprehensive Annual Financial Report City of Renton, Washington
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 12 in the Statistical Section shows the
computation of legal debt margin for general and special purpose capacities for the City of
Renton.
ARBITRAGE
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
2011.
ISSUED/REFUNDED DEBT
On August 2, 2011, the City issued $16,715,000 in Limited Tax General Obligation (LTGO) Bonds
with an average interest rate of 3.72%. The proceeds were used to finance all or a portion of
the costs of acquiring land for and constructing, improving, and equipping two new public
library facilities and repairing, renovating and improving existing library facilities; providing the
form and terms of the bond.
On September 21, 2011, the City issued $9,425,000 in Limited Tax General Obligation Refunding
Bonds with an average interest rate of 3% to advance refund $9,950,000 of outstanding 2001
Limited Tax General Obligation Bonds. The net proceeds were used to purchase U.S.
government securities which were deposited with an escrow agent to provide for all future
debt service payments on the refunded bonds. As a result, these bonds are considered
defeased. The advance refunding resulted in a reduction in the aggregate debt service
payments of $1,402,171 and a present value gain of $1,348,396.
On May 30, 2011, the City issued $700,000 in an interfund loan (from General Fund to Capital
Improvement Fund) with an average interest rate of 2.25% to help finance a portion of the
remaining costs for the Southwest 27th Street/Strander Boulevard Connection Project. The
interfund loan will be fully repaid on May 30, 2016.
In prior years the City defeased certain bond issues by placing the proceeds of new bonds in an
irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly,
the trust account assets and the liability for the defeased bonds are not included in the City's
financial statements. The schedules of assets, liabilities, and net assets of the City's escrow
accounts as of December 31, 2011 are provided in the following table.
Basic Financial Statements, 4-62
US Bank Corporate Trust
(2007 Revenue Bonds)
Assets
Cash with Trustee
$ 1
Investments with Trustee
8,242,817
Estimated Interest Receivable
322,440
Total Assets
8,565,258
Liabilities
Refunded Bonds Payable
8,119,795
Total Liabilities
8,119,795
Net Assets
Earnings with Trustee
445,463
Total Net Assets
$ 445,463
Basic Financial Statements, 4-62
2011 Comprehensive Annual Financial Report City of Renton, Washington
ANNUAL DEBT SERVICE REQUIREMENTS
The annual debt service requirements to maturity, including principal and interest, for long-
term debt as of December 31, 2011, are as follows:
AMOUNT AVAILABLE FOR DEBT SERVICE
Fund balances that have been reserved for debt repayment are $1,032,361 in the general
governmental funds.
OPERATING LEASES
The City has Golf Course Operating Lease agreement for the amount of $87,800 and dated June
2007. This lease is for the purchase of 50 Club Car Golf Carts. The lease qualifies as an
operating lease for accounting purposes because the individual cost of each golf cart is below
the City's capitalization threshold of $5,000. Payments are made monthly at an interest rate of
5.25%. The debt service for this lease is accounted for in the Municipal Golf Course System
Fund (404). As of December 31, 2011, the City made its final payment and has a remaining
balance of zero dollars.
NOTE 14 - DEFERRED CHARGES IN PROPRIETARY FUNDS
As of December 31, 2011, the total amount of deferred charges and other assets reported in
the proprietary funds is $470,561. 100% of this amount is reported in the Waterworks Utility
Fund and is for debt issuance costs related to the 2002-2008 Revenue Bonds. This amount will
be fully amortized by 2027.
NOTE 15. SEGMENT INFORMATION
An identifiable activity (or grouping of activities) required to be accounted for separately, which
(a) is reported as or within an enterprise fund; (b) for which one or more revenue bonds are
outstanding; and, (c) where the revenue stream is pledged for payment of, are required to
disclose segment information. The City of Renton has no required segment information to
disclose for 2010.
Basic Financial Statements, 4-63
Governmental Activities
Business -Type
Activities
Year
Principal
Interest
Principal
Interest
2012
4,112,517
4,214,761
3,019,290
1,577,350
2013
4,921,839
4,078,365
2,488,648
1,485,133
2014
5,052,130
3,928,189
2,368,612
1,423,451
2015
5,215,625
3,749,749
2,433,509
1,346,396
2016
5,173,616
3,571,540
2,418,901
1,264,617
2017-2021
27,692,975
14,431,874
12,113,446
4,978,838
2022-2026
13,747,800
9,001,741
13,610,811
2,526,161
2027-2031
9,533,736
5,530,857
2,915,000
137,665
2032-2036
7,543,800
3,059,430
-
-
2037+
5,349,600
540,898
-
-
Totals
88,343,639
52,107,404
41,368,217
14,739,611
AMOUNT AVAILABLE FOR DEBT SERVICE
Fund balances that have been reserved for debt repayment are $1,032,361 in the general
governmental funds.
OPERATING LEASES
The City has Golf Course Operating Lease agreement for the amount of $87,800 and dated June
2007. This lease is for the purchase of 50 Club Car Golf Carts. The lease qualifies as an
operating lease for accounting purposes because the individual cost of each golf cart is below
the City's capitalization threshold of $5,000. Payments are made monthly at an interest rate of
5.25%. The debt service for this lease is accounted for in the Municipal Golf Course System
Fund (404). As of December 31, 2011, the City made its final payment and has a remaining
balance of zero dollars.
NOTE 14 - DEFERRED CHARGES IN PROPRIETARY FUNDS
As of December 31, 2011, the total amount of deferred charges and other assets reported in
the proprietary funds is $470,561. 100% of this amount is reported in the Waterworks Utility
Fund and is for debt issuance costs related to the 2002-2008 Revenue Bonds. This amount will
be fully amortized by 2027.
NOTE 15. SEGMENT INFORMATION
An identifiable activity (or grouping of activities) required to be accounted for separately, which
(a) is reported as or within an enterprise fund; (b) for which one or more revenue bonds are
outstanding; and, (c) where the revenue stream is pledged for payment of, are required to
disclose segment information. The City of Renton has no required segment information to
disclose for 2010.
Basic Financial Statements, 4-63
2011 Comprehensive Annual Financial Report
NOTE 16. JOINT VENTURES
City of Renton, Washington
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.
VALLEY COMMUNICATIONS CENTER
The Valley Communications Center (Valley Comm) 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 agreement is sanctioned by the provisions and terms of the Interlocal Cooperation
Act pursuant to Chapter 39.34 RCW. 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 Comm, 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, 17 (Black Diamond), 20, 26, 40, 43, 44, 47; City of Pacific Police and
Fire Departments; City of Black Diamond Police Department; City of Des Moines Police
Department; SeaTac Fire Department; North Highline Fire Department; King County EMS Units;
and Vashon Island Fire Department. Separate agreements between Valley Comm and the
subscribing agencies have been executed, which set forth conditions of services and rates
charged.
The City of Renton reports its share of equity interest in the Governmental Activities column
within the Government -wide financial statements under non-current assets. The following is
condensed financial information as of December 31, 2011 related to Valley Comm:
Completed Financial Statements for Valley Comm can be obtained from the Valley
Communications Center, 23807 — 98th Avenue South, Kent, WA 98031.
Basic Financial Statements, 4-64
Valley Communications Center
2011 Owner Cities Equity Allocation
Member City
Percent of Equity
2010 Equity Balance 2011 Distribution
2011 Equity Balance
Auburn
19.43%
$ 4,575,538 $
148,189 $
4,723,727
Federal Way
22.00%
3,090,648
167,760
3,258,408
Kent
27.57%
6,841,893
210,199
7,052,092
Renton
21.39%
4,833,671
163,082
4,996,753
Tukwila
9.61%
2,739,460
73,257
2,812,717
Grand Totals
100.00%
$ 22,081,210 $
762,487 $
22,843,697
Completed Financial Statements for Valley Comm can be obtained from the Valley
Communications Center, 23807 — 98th Avenue South, Kent, WA 98031.
Basic Financial Statements, 4-64
2011 Comprehensive Annual Financial Report City of Renton, Washington
SOUTH CORRECTIONAL ENTITY (SCORE)
The South Correctional Entity (SCORE) consolidated correctional facility was established
February 25, 2009, when an Interlocal Agreement (the "Original Interlocal Agreement") was
entered into by seven participating municipal governments, the "Member Cities" of Auburn,
Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila, under the authority of the
"Interlocal Cooperation Act" (RCW 39.34). This "Original Interlocal Agreement" was amended
and restated October 1, 2009 and named the City of Des Moines as the "Host City" and the
remaining Member Cities as "Owner Cities". This interlocal agreement is known as the
"Formation Interlocal Agreement". Pursuant to a separate "Host City Agreement" dated
October 1, 2009, the Host City will not enjoy the same equity position as the Owner Cities until
all debts issued are paid and the Host City fulfills all of its obligations as outlined in the
Agreement.
SCORE, an governmental administrative agency pursuant to RCW 39.34.030 (3), has the power
to acquire, construct, own, operate, maintain, equip, and improve a correctional facility known
as the "SCORE Facility" and to provide 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. The SCORE Facility may serve
the Member Cities and Subscribing Agencies which are in need of correctional facilities. Any
agreement with a Subscribing Agency shall be in writing and approved by SCORE as provided
within the SCORE Formation Interlocal Agreement.
Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility
will be 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. The following is a summary of the debt service requirements for the
bond issue:
Basic Financial Statements, 4-65
Summa
of Debt Service Requirements
Debt Service Schedule
Debt Service Allocation to Owner Cities
3S%BABs
Auburn
Burien
Federal Way
Renton
SeaTac
Tukwila
Year
Principal
Interest
Subsidy
Total
31%
4%
18%
36%
3%
8%
2012 $
- $
5,155,732 $
(1,675,089) $
3,480,643
$ 1,078,999 $
139,226
$ 626,516 $
1,253,031 $
104,419 $
278,451
2013
1,915,000
5,126,998
(1,675,089)
5,366,909
1,663,742
214,676
966,044
1,932,087
161,007
429,353
2014
1,950,000
5,066,566
(1,6S4,975)
5,361,591
1,662,093
214,464
965,086
1,930,173
160,848
428,927
2015
1,990,000
4,995,069
(1,632,787)
5,352,282
1,659,207
214,091
963,411
1,926,822
160,568
428,183
2016
2,065,000
4,911,886
(1,632,787)
5,344,099
1,656,671
213,764
961,938
1,923,876
160,323
427,528
2017-2021
11,545,000
22,986,907
(7,869,713)
26,662,194
8,265,280
1,066,488
4,799,195
9,598,390
799,866
2,132,975
2022-2026
13,945,000
19,S86,127
(6,994,733)
26,S36,394
8,226,282
1,061,456
4,776,551
9,553,102
796,092
2,122,912
2027-2031
17,010,000
14,723,464
(5,346,730)
26,386,735
8,179,888
1,055,469
4,749,612
9,499,224
791,602
2,110,939
2032-2036
20,955,000
8,498,417
(3,217,063)
26,236,354
8,133,270
1,049,454
4,722,544
9,445,088
787,091
2,098,908
2037-2039
14,860,000
1,502,494
(697,922)
15,664,572
4,856,017
626,583
2,819,623
5,639,246
469,937
1,253,166
Totals $
86,235,000 $
92,553,660 $
32,396,888 $
146,391,772
$ 4S,381,449 $
5,855,671
$ 26,3S0,520 $
S2,701,038 $
4,391,753 $
11,711,343
Note: Interest is to be
paid from bond
proceeds durin
the construction period 2010-2011
Basic Financial Statements, 4-65
2011 Comprehensive Annual Financial Report
City of Renton, Washington
The City of Renton reports its share of equity interest in the Governmental Activities column
within the Government -wide financial statements under non-current assets. The following is
condensed financial information as of December 31, 2011 related to SCORE:
Completed financial statements for SCORE and SCORE PDA can be obtained from the SCORE
office, City of Renton, 1055 South Grady Way, Renton, WA 98057.
NOTE 17. SUBSEQUENT EVENTS
There were no significant subsequent events that occurred after the end of the reporting
period and before the issuance of the financial statements.
Basic Financial Statements, 4-66
South Correctional Entity (SCORE)
2011 Owner Cities Equity Allocation
Member City
Percent of Equity
2010 Euit Balance 2011 Distribution
2011 Euit Balance
Auburn
31.00%
$ 1,601,588 $
1,587,732
$ 3,189,320
Bu ri e n
4.00%
206,656
204,869
411,525
Federal Way
18.00%
929,954
921,909
1,851,863
Renton
36.00%
1,859,910
1,843,818
3,703,728
Se a Ta c
3.00%
154,992
153,651
308,643
Tukwila
8.00%
413,313
409,737
823,050
Grand Totals
100.00%
$ 5,166,413 $
5,121,716
$ 10,288,129
Completed financial statements for SCORE and SCORE PDA can be obtained from the SCORE
office, City of Renton, 1055 South Grady Way, Renton, WA 98057.
NOTE 17. SUBSEQUENT EVENTS
There were no significant subsequent events that occurred after the end of the reporting
period and before the issuance of the financial statements.
Basic Financial Statements, 4-66
2011 Comprehensive Annual Financial Report City of Renton, Washington
REQUIRED SUPPLEMENTARY INFORMATON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - GENERAL FUND
For the Year Ended December 31, 2011
OTHER FINANCING SOURCES (USES)
Transfer in
BUDGETED AMOUNTS
15,420
15,420
-
ORIGINAL
FINAL
ACTUAL
VARIANCE
REVENUES
Sale of capital assets
500
Taxes
$ 71,057,275 $
71,138,351
$ 71,443,862 $
305,511
Licenses and permits
2,642,987
2,400,645
2,665,983
265,338
Intergovernmental revenues
8,901,802
11,558,406
10,534,331
(1,024,075)
Charges for services
3,912,697
3,934,697
3,860,290
(74,407)
Fines and forfeits
3,168,351
3,168,351
3,150,326
(18,025)
Interfund revenues
3,314,653
3,673,171
3,057,642
(615,529)
Contributions
100,000
168,875
192,699
23,824
Interest
477,730
237,543
366,332
128,789
Miscellaneous revenues
676,329
676,329
646,868
(29,461)
TOTAL REVENUES
94,251,824
96,956,368
95,918,333
(1,038,035)
EXPENDITURES
Current:
General government
10,228,422
11,129,091
10,598,389
(530,702)
Judicial
2,466,177
2,495,676
2,563,989
68,313
Public safety
52,110,671
53,388,852
52,986,589
(402,263)
Physical environment
2,453,387
2,435,235
2,048,971
(386,264)
Transportation
8,282,944
8,250,976
8,018,267
(232,709)
Economic environment
5,977,163
7,198,248
5,876,231
(1,322,017)
Health and human services
528,610
539,236
511,934
(27,302)
Culture and recreation
10,510,896
10,572,271
10,215,229
(357,042)
Capital outlay
267,559
89,882
78,089
(11,793)
Debt service:
Principal payment
-
700,000
-
(700,000)
TOTAL EXPENDITURES
92,825,829
96,799,467
92,897,688
(3,901,779)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
1,425,995
156,901
3,020,645
2,863,744
OTHER FINANCING SOURCES (USES)
Transfer in
15,420
15,420
-
Transfer (out)
(2,008,000)
(2,243,707)
(2,268,329)
24,622
Sale of capital assets
500
500
TOTAL OTHER FINANCE SOURCES (USES)
(2,008,000)
(2,228,287)
(2,252,409)
25,122
NET CHANGE IN FUND BALANCE
(582,005)
(2,071,386)
768,236
2,888,866
FUND BALANCE JANUARY 1
10,895,379
14,980,540
-
(14,980,540)
Prior Priod Adjustment
-
-
14,980,540
14,980,540
FUND BALANCES JANUARY 1 RESTATED
$ 10,895,379 $
14,980,540 $
14,980,540 $
-
FUND BALANCE DECEMBER 31
$ 10,313,374 $
12,909,154 $
15,748,776 $
2,839,622
NOTE TO THE REQUIRED SUPPLEMENTARY INFORMATION
NOTE 1: Budget and actual information is presented on a GAAP basis of accounting.
Required Supplementary Information, 5-1
2011 Comprehensive Annual Financial Report
FISCAL YEAR ENDING
December 31, 2006
December 31, 2007
December 31, 2008
December 31, 2009
December 31, 2010
December 31, 2011
City of Renton, Washington
REQUIRED SUPPLEMENTARY INFORMATION
ACTUARIAL VALUATION OF FIREFIGHTERS' PENSION FUND
EMPLOYER CONTRIBUTIONS
December 31, 2011
ANNUAL
FIRE TOTAL
REQUIRED
EMPLOYER
INSURANCE EMPLOYER CONTRIBUTION
CONTRIBUTIONS*
PREMIUMS CONTRIBUTIONS
(ARC)
$ (18,753)
$ 77,821 $ 59,068 $
(113,541)
(25,285)
85,062 59,777
(109,968)
(19,894)
85,949 66,055
(109,968)
(36,296)
106,623 70,327
(172,788)
(5,618)
112,686 107,068
(172,788)
(12,700)
115,054 102,354
(348,435)
PERCENTAGE
OF ARC
CONTRIBUTED
N/A
N/A
N/A
N/A
N/A
N/A
* Employer contributions for pension are total contributions to the Fund net of disbursements from the Fund for medical expenses
under RCW 41.26.150 and administrative expenses.
Required Supplementary Information, 5-2
2011 Comprehensive Annual Financial Report
REQUIRED SUPPLEMENTARY INFORMATION
LEOFF 1 RETIREE MEDICAL BENEFITS
SCHEDULE OF FUNDING PROGRESS
December 31, 2011
ACTUARIAL
ACTUARIAL
VALUE OF
ACCRUED
VALUATION DATE ASSETS
LIABILITIES
January 1, 2009 $
32,331,107
Januray 1, 2010
27,985,358
Januray 1, 2011
27,835,211
City of Renton, Washington
UNFUNDED
UAAL AS A
ACTUARIAL
PERCENTAGE
ACCRUED
FUNDED
COVERED
OF COVERED
LIABILITIES
RATIO
PAYROLL
PAYROLL
32,331,107
0%
$ 411,952
7848.27%
27,985,358
0%
414,264
6755.45%
27,835,211
0%
434,132
6411.70%
Required Supplementary Information, 5-3
2011 Comprehensive Annual Financial Report
This page intentionally left blank.
City of Renton, Washington
Required Supplementary Information, 5-4
2011 Comprehensive Annual Financial Report
Non -Major Governmental Funds
Special Revenue Funds
ARTERIAL STREET FUND
City of Renton, Washington
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.
PATHS AND TRAILS RESERVE FUND
The Paths and Trails Reserve Fund was created for the purpose of planning,
accommodating, and establishing and maintaining certain paths and trails within 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.
Combining Statements & Schedules, 6-1
2011 Comprehensive Annual Financial Report
Debt Service Funds
GENERAL GOVERNMENTAL MISCELLANEOUS DEBT SERVICE FUND
This debt service fund accounts for the following outstanding debt issues:
City of Renton, Washington
• 2001 limited tax general obligation refunding bonds which refunded a portion of
the 1997 limited tax general obligation bonds for the purchase of Renton City
Hall.
• 2002 limited tax general obligation bonds which provided funding for the
construction of a new fire station.
• 2006 limited tax general obligation bonds which provided funding for the
construction of South Lake Washington infrastructure improvements.
• 2009 intergovernmental debt related to the Fire District #40 asset transfer as a
result of the Benson Hill annexation.
• 2010 intergovernmental refunding debt which refunded a portion of the 2000
intergovernmental debt for the construction of a new facility for Valley
Communications Center.
• 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 2 new libraries.
1997 LIMITED GO BONDS — CITY HALL
This debt service fund accounts for the following outstanding debt issue:
• 2011 limited tax general obligation refunding bonds which refunded a portion of
the 2001 limited tax general obligation refunding bonds which refunded a
portion of the 1997 limited tax general obligation bonds for the purchase of
Renton City Hall.
Combining Statements & Schedules, 6-2
2011 Comprehensive Annual Financial Report
Capital Project Funds
COMMUNITY DEVELOPMENT IMPACT MITIGATION FUND
City of Renton, Washington
Accounts for monies collected from developers to offset impacts created by their
developments to City facilities.
FIRE IMPACT MITIGATION FUND
Accounts for monies collected from developers to offset impacts created by their
developments to City facilities.
TRANSPORTATION IMPACT MITIGATION FUND
Accounts for monies collected from developers to offset impacts created by their
developments to City facilities.
SOUTH LAKE WASHINGTON INFRASTRUCTURE PROJECT FUND
The South Lake Washington Infrastructure Project Fund accounts for the infrastructure
improvements at the south end of Lake Washington. Primary resources include: REET,
sales tax, grants, and GO Bonds which provide for the design, construction, labor wages
and benefits, and equipment required to implement the project.
Combining Statements & Schedules, 6-3
2011 Comprehensive Annual Financial Report
Non -Major Proprietary Funds
Enterprise Funds
AIRPORT FUND
City of Renton, Washington
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
The Equipment Rental Fund accounts for the costs of maintaining and replacing all City
vehicles and auxiliary equipment, except for fire apparatus and replacement of police
patrol vehicles. 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.
Combining Statements & Schedules, 6-4
2011 Comprehensive Annual Financial Report
ASSETS
Cash & cash equivalents
Investments
Customer accounts
Interfund loans receivable
Due from other governmental units
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Retainage payable
Total liabilities
Fund balances
Committed
Assigned
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
City of Renton, Washington
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2011
Page 1 of 6
SPECIAL REVENUE FUNDS
ARTERIAL HOTEL/ PATHS &
STREET MOTEL TAX TRAILS
$ 99,099 $ 152,628 $ 2,077
58,493 90,088 1,226
1,382 841 12
- 175,000 -
254,974 99,030 3,315
254,974 274,030 3,315
$ 254,974 $ 274,030 $ 3,315
Combining Statements & Schedules, 6-5
2011 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2011
Page 2 of 6
SPECIAL REVENUE FUNDS
1% FOR CABLE COMM. SPRINGBROOK TOTAL
ART & DEVELOPMENT WETLANDS SRF
ASSETS
Cash & cash equivalents
$
76,554
$ 136,075
$ 415,814
$
882,247
Investments
45,186
80,318
245,433
520,744
Customer accounts
-
1,500
-
1,500
Interfund loans receivable
447
728
2,311
5,721
Due from other governmental units
-
-
-
126,473
TOTAL ASSETS
122,187
218,621
663,558
1,536,685
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
$
$ 31,151
$
$
31,151
Retainage payable
500
-
500
Total liabilities
500
31,151
31,651
Fund balances
Committed
-
100,000
275,000
Assigned
121,687
87,470
663,558
1,230,034
Total fund balances
121,687
187,470
663,558
1,505,034
TOTAL LIABILITIES AND FUND BALANCES
$
122,187
$ 218,621
$ 663,558
$
1,536,685
Combining Statements & Schedules, 6-6
2011 Comprehensive Annual Financial Report
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2011
Page 3 of 6
ASSETS
Cash & cash equivalents
Investments
Receivables (net of allowances):
Special assessments
Due from other governmental units
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Deferred revenue
Total liabilities
Fund balances
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
City of Renton, Washington
GENERAL TOTAL
nrQT hCC
$ 647,210 $
647,210
382,013
382,013
8,076
8,076
1,953,223
1,953,223
2,990,522
2,990,522
$ 5,454 $
5,454
1,952,708
1,952,708
1,958,162
1,958,162
1,032,360
1,032,360
1,U3/-,3OU L,U.7L,30U
$ 2,990,522 $ 2,990,522
Combining Statements & Schedules, 6-7
2011 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2011
Page 4 of 6
C.D. IMPACT FIRE IMPACT TRANS. IMPACT SO LK WA INFRA -
MITIGATION MITIGATION MITIGATION STRUCTURE
ASSETS
Cash & cash equivalents
$
924,548
$ 934,599
$ 410,756
$
33,076
Investments
545,711
551,644
242,447
19,523
Receivables (net of allowances):
Accrued interest & penalty
-
-
19,279
-
Interfund loans receivable
4,796
6,435
3,986
193
Due from other governmental units
-
-
747
-
TOTAL ASSETS
1,475,055
1,492,678
677,215
52,792
LIABILITIES AND FUND BALANCES
Liabilities
Deferred revenue
$
-
$ -
$ 19,279
$
-
Total liabilities
19,279
Fund balances
Restricted
-
-
-
Committed
400,000
-
280,000
52,024
Assigned
1,075,055
1,492,678
377,936
768
Unassigned
-
-
-
-
Total fund balances
1,475,055
1,492,678
657,936
52,792
TOTAL LIABILITIES AND FUND BALANCES
$
1,475,055
$ 1,492,678
$ 677,215
$
52,792
Combining Statements & Schedules, 6-8
2011 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2011
Page 5 of 6
ASSETS
Cash & cash equivalents
Investments
Receivables (net of allowances):
Accrued interest & penalty
Interfund loans receivable
Due from other governmental units
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Deferred revenue
Total liabilities
Fund balances
Restricted
Committed
Assigned
Unassigned
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
TOTAL
CPF
$ 2,302,979
1,359,325
19,279
15,410
747
3,697,740
$ 19,279
19,279
732,024
2,946,437
3,678,461
$ 3,697,740
Combining Statements & Schedules, 6-9
2011 Comprehensive Annual Financial Report City of Renton, Washington
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31, 2011
Page 6 of 6
Combining Statements & Schedules, 6-10
TOTAL OTHER
TOTAL
TOTAL
TOTAL
GOVERNMENTAL
SRF
DSF
CPF
FUNDS
ASSETS
Cash & cash equivalents
$
882,247
$ 647,210
$
2,302,979
$
3,832,436
Investments
520,744
382,013
1,359,325
2,262,082
Receivables (net of allowances):
Customer accounts
1,500
-
-
1,500
Accrued interest & penalty
-
-
19,279
19,279
Special assessments
-
8,076
-
8,076
Interfund loans receivable
5,721
-
15,410
21,131
Due from other governmental units
126,473
1,953,223
747
2,080,443
TOTAL ASSETS
$
1,536,685
$ 2,990,522
$
3,697,740
$
8,224,947
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
$
31,151
$ 5,454
$
-
$
36,605
Retainage payable
500
-
-
500
Deferred revenue
-
1,952,708
19,279
1,971,987
Total liabilities
31,651
1,958,162
19,279
2,009,092
Fund balances
Restricted
-
1,032,360
-
1,032,360
Committed
275,000
-
732,024
1,007,024
Assigned
1,230,034
-
2,946,437
4,176,471
Total fund balances
1,505,034
1,032,360
3,678,461
6,215,855
TOTAL LIABILITIES AND FUND BALANCES
$
1,536,685
$ 2,990,522
$
3,697,740
$
8,224,947
Combining Statements & Schedules, 6-10
2011 Comprehensive Annual Financial Report City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2011
Page 1 of 6
SPECIAL REVENUE FUNDS
NET CHANGE IN FUND BALANCE (115,619) 32,748 17
FUND BALANCE JANUARY 1 370,593 241,282 3,298
FUND BALANCE JANUARY 1 RESTATED $ 370,593 $ 241,282 $ 3,298
FUND BALANCE DECEMBER 31 $ 254,974 $ 274,030 $ 3,315
Combining Statements & Schedules, 6-11
ARTERIAL
HOTEL/ PATHS &
STREET
MOTEL TAX TRAILS
REVENUES
Taxes
$ $
211,750 $
Licenses and permits
-
Intergovernmental revenues
502,347
-
Contributions
-
65,000 -
Interest
2,034
1,199 17
Miscellaneous revenues
-
- -
TOTAL REVENUES
504,381
277,949 17
EXPENDITURES
Current:
General government
-
- -
Economic environment
245,201
Culture & recreation
-
Capital outlay
-
TOTAL EXPENDITURES
-
245,201 -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
504,381
32,748 17
OTHER FINANCING SOURCES (USES)
Transfer (out)
(620,000)
- -
TOTAL OTHER FINANCE SOURCES (USES)
(620,000)
NET CHANGE IN FUND BALANCE (115,619) 32,748 17
FUND BALANCE JANUARY 1 370,593 241,282 3,298
FUND BALANCE JANUARY 1 RESTATED $ 370,593 $ 241,282 $ 3,298
FUND BALANCE DECEMBER 31 $ 254,974 $ 274,030 $ 3,315
Combining Statements & Schedules, 6-11
2011 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2011
Page 2 of 6
Combining Statements & Schedules, 6-12
1% FOR
CABLE COMM.
SPRINGBROOK
TOTAL
ART
& DEVELOPMENT
WETLANDS
SRF
REVENUES
Taxes
$
$ 40,000
$
$
251,750
Licenses and permits
48,763
48,763
Intergovernmental revenues
-
502,347
Contributions
-
65,000
Interest
623
1,050
3,231
8,154
Miscellaneous revenues
-
1,584
-
1,584
TOTAL REVENUES
623
91,397
3,231
877,598
EXPENDITURES
Current:
General government
295
-
-
295
Economic environment
-
-
245,201
Culture & recreation
-
76,744
76,744
Capital outlay
15,425
-
15,425
TOTAL EXPENDITURES
15,720
76,744
-
337,665
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
(15,097)
14,653
3,231
539,933
OTHER FINANCING SOURCES (USES)
Transfer (out)
-
-
(620,000)
TOTAL OTHER FINANCE SOURCES (USES)
-
-
(620,000)
NET CHANGE IN FUND BALANCE
(15,097)
14,653
3,231
(80,067)
FUND BALANCE JANUARY 1
136,784
172,817
660,327
1,585,101
FUND BALANCE JANUARY 1 RESTATED
$
136,784
$ 172,817
$ 660,327
$
1,585,101
FUND BALANCE DECEMBER 31
$
121,687
$ 187,470
$ 663,558
$
1,505,034
Combining Statements & Schedules, 6-12
2011 Comprehensive Annual Financial Report City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2011
Page 3 of 6
NET CHANGE IN FUND BALANCE 22,805 22,805
FUND BALANCE JANUARY 1 1,009,555 1,009,555
FUND BALANCE JANUARY 1 RESTATED $ 1,009,555 $ $ 1,009,555
FUND BALANCE DECEMBER 31 $ 1,032,360 $ $ 1,032,360
Combining Statements & Schedules, 6-13
GENERAL 1989 UGO BOND
TOTAL
DEBT REDEMPTION
DSF
REVENUES
Taxes
$ 3,995,842 $ $
3,995,842
Intergovernmental revenues
309,134
309,134
Interest
11,338
11,338
TOTAL REVENUES
4,316,314
4,316,314
EXPENDITURES
Debt service:
Principal payments
2,783,237
2,783,237
Interest and fiscal charges
2,376,944
2,376,944
TOTAL EXPENDITURES
5,160,181
5,160,181
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
(843,867)
(843,867)
OTHER FINANCING SOURCES (USES)
Transfer in
529,056
529,056
Refunding bonds issued
9,425,000
9,425,000
Premium on general obligation debt
862,616
862,616
Payment to refunded bond escrow agent
(9,950,000)
(9,950,000)
TOTAL OTHER FINANCE SOURCES (USES)
866,672
866,672
NET CHANGE IN FUND BALANCE 22,805 22,805
FUND BALANCE JANUARY 1 1,009,555 1,009,555
FUND BALANCE JANUARY 1 RESTATED $ 1,009,555 $ $ 1,009,555
FUND BALANCE DECEMBER 31 $ 1,032,360 $ $ 1,032,360
Combining Statements & Schedules, 6-13
2011 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For
the Year Ended December 31, 2011
Page 4 of 6
C.D. IMPACT
FIRE IMPACT
TRANS. IMPACT
MITIGATION
MITIGATION
MITIGATION
REVENUES
Charges for services
63,560
83,803
182,713
Interest
6,697
9,117
5,374
TOTAL REVENUES
70,257
92,920
188,087
EXPENDITURES
Current:
Transportation
-
-
-
Culture & recreation
TOTAL EXPENDITURES
-
-
-
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
70,257
92,920
188,087
OTHER FINANCING SOURCES (USES)
Transfer in
61,352
-
-
Transfer (out)
-
(529,056)
(650,000)
TOTAL OTHER FINANCE SOURCES (USES)
61,352
(529,056)
(650,000)
NET CHANGE IN FUND BALANCE 131,609 (436,136) (461,913)
FUND BALANCE JANUARY 1 1,343,446 1,928,814 1,119,849
$ 1,343,446 $ 1,928,814 $ 1,119,849
FUND BALANCE DECEMBER 31 $ 1,475,055 $ 1,492,678 $ 657,936
Combining Statements & Schedules, 6-14
2011 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2011
Page 5 of 6
REVENUES
Charges for services
Interest
TOTAL REVENUES
EXPENDITURES
Current:
Transportation
Culture & recreation
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in
Transfer (out)
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE JANUARY 1 RESTATED
FUND BALANCE DECEMBER 31
SO LK WA INFRA- TOTAL
STRUCTURE CPF
- 330,076
269 21,457
269 351,533
734 734
5,241 5,241
5,975 5,975
P,/Vol
61,352
(1,179,056)
(1,117, 704)
k",-1 �, IL' -1
58,498 4,450,607
$ 58,498 $ 4,450,607
$ 52,792 $ 3,678,461
Combining Statements & Schedules, 6-15
2011 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the Year Ended December 31, 2011
Page 6 of 6
REVENUES
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Contributions
Interest
Miscellaneous revenues
TOTAL REVENUES
EXPENDITURES
Current:
General government
Physical environment
Transportation
Economic environment
Mental & physical health
Culture & recreation
Debt service:
Principal payments
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in
Transfer (out)
Refunding bonds issued
Premium on general obligation debt
Payment to refunded bond escrow agent
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
(80,067) 22,805 (772,146) (829,408)
1,585,101 1,009,555 4,450,607 7,045,263
$ 1,505,034 $ 1,032,360 $ 3,678,461 $ 6,215,855
Combining Statements & Schedules, 6-16
TOTAL OTHER
TOTAL
TOTAL
TOTAL
GOVERNMENTAL
SRF
DSF
CPF
FUNDS
$ 251,750 $
3,995,842 $
$
4,247,592
48,763
-
48,763
502,347
309,134
811,481
-
-
330,076
330,076
65,000
-
-
65,000
8,154
11,338
21,457
40,949
1,584
-
-
1,584
877,598
4,316,314
351,533
5,545,445
295
-
-
295
245,201
-
245,201
-
734
734
76,744
-
76,744
15,425
-
15,425
-
-
5,241
5,241
2,783,237
2,783,237
-
2,376,944
-
2,376,944
337,665
5,160,181
5,975
5,503,821
(843,867)
345,558
539,933
41,624
-
529,056
61,352
590,408
(620,000)
-
(1,179,056)
(1,799,056)
9,425,000
9,425,000
862,616
862,616
(9,950,000)
(9,950,000)
(620,000)
866,672
(1,117,704)
(871,032)
(80,067) 22,805 (772,146) (829,408)
1,585,101 1,009,555 4,450,607 7,045,263
$ 1,505,034 $ 1,032,360 $ 3,678,461 $ 6,215,855
Combining Statements & Schedules, 6-16
2011 Comprehensive Annual Financial Report
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - ARTERIAL STREET FUND
For the Year Ended December 31, 2011
BUDGETED AMOUNTS
ORIGINAL FINAL ACTUAL
City of Renton, Washington
VARIANCE
REVENUES
Intergovernmental revenues $
617,000 $
617,000 $
502,347 $
(114,653)
Interest
3,000
3,000
2,034
(966)
TOTAL REVENUES
620,000
620,000
504,381
(115,619)
EXPENDITURES
TOTAL EXPENDITURES
-
-
-
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
620,000
620,000
504,381
(115,619)
OTHER FINANCING SOURCES (USES)
Transfer (out)
(620,000)
(620,000)
(620,000)
TOTAL OTHER FINANCE SOURCES (USES)
(620,000)
(620,000)
(620,000)
NET CHANGE IN FUND BALANCE
-
-
(115,619)
(115,619)
FUND BALANCE JANUARY 1
200,687
370,595
370,593
(2)
FUND BALANCE DECEMBER 31 $
200,687 $
370,595 $
254,974 $
(115,621)
Combining Statements & Schedules, 6-17
2011 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - HOTEL/MOTEL TAX FUND
For the Year Ended December 31, 2011
REVENUES
Taxes
Contributions
Interest
TOTAL REVENUES
EXPENDITURES
Current:
Economic environment
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
VARIANCE
$ 180,000 $
180,000 $
211,750 $
31,750
65,000
65,000
65,000
-
-
-
1,199
1,199
245,000
245,000
277,949
32,949
245,000 450,000 245,201 (204,799)
245,000 450,000 245,201 (204,799)
247,828 241,282 241,282 0
$ 247,828 $ 36,282 $ 274,030 $ 237,748
Combining Statements & Schedules, 6-18
2011 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF
REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - PATHS AND TRAILS FUND
For the Year Ended December 31, 2011
BUDGETED AMOUNTS
ORIGINAL FINAL ACTUAL
VARIANCE
REVENUES
Interest
$ $ $
17
$ 17
TOTAL REVENUES
17
17
EXPENDITURES
TOTAL EXPENDITURES
-
-
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
17
17
OTHER FINANCING SOURCES (USES)
TOTAL OTHER FINANCE SOURCES (USES)
-
-
NET CHANGE IN FUND BALANCE
17
17
FUND BALANCE JANUARY 1
3,264 3,299
3,298
(1)
FUND BALANCE DECEMBER 31
$ 3,264 $ 3,299 $
3,315
$ 16
Combining Statements & Schedules, 6-19
2011 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - 1% FOR ART FUND
For the Year Ended December 31, 2011
BUDGETED AMOUNTS
ORIGINAL FINAL
ACTUAL
VARIANCE
REVENUES
Interest
$ $ $
623
$ 623
TOTAL REVENUES
623
623
EXPENDITURES
Current:
General government
295
295
Capital outlay
50,000 68,257
15,425
(52,832)
TOTAL EXPENDITURES
50,000 68,257
15,720
(52,537)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
(50,000) (68,257)
(15,097)
53,160
OTHER FINANCING SOURCES (USES)
Transfer in
15,000 32,000
(32,000)
TOTAL OTHER FINANCE SOURCES (USES)
15,000 32,000
(32,000)
NET CHANGE IN FUND BALANCE
(35,000) (36,257)
21,160
(15,097)
FUND BALANCE JANUARY 1
128,796 136,784
136,784
0
FUND BALANCE DECEMBER 31
$ 93,796 $ 100,527 $
121,687
$ 21,160
Combining Statements & Schedules, 6-20
2011 Comprehensive Annual Financial Report City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - CABLE COMMUNICATIONS DEVELOPMENT FUND
For the Year Ended December 31, 2011
BUDGETED AMOUNTS
ORIGINAL FINAL ACTUAL VARIANCE
REVENUES
Taxes $
40,000 $
40,000 $
40,000 $
-
Licenses and permits
45,000
45,000
48,763
3,763
Interest
-
-
1,050
1,050
Miscellaneous revenues
-
-
1,584
1,584
TOTAL REVENUES
85,000
85,000
91,397
6,397
EXPENDITURES
Current:
Culture and recreation
45,674
45,674
76,744
31,070
Capital outlay
40,000
175,627
-
(175,627)
TOTAL EXPENDITURES
85,674
221,301
76,744
(144,557)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
(674)
(136,301)
14,653
150,954
OTHER FINANCING SOURCES (USES)
TOTAL OTHER FINANCE SOURCES (USES)
-
-
-
NET CHANGE IN FUND BALANCE
(674)
14,653
150,954
(136,301)
FUND BALANCE JANUARY 1
88,718
172,817
172,817
0
FUND BALANCE DECEMBER 31 $
88,044 $
36,516 $
187,470 $
150,954
Combining Statements & Schedules, 6-21
2011 Comprehensive Annual Financial Report City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - SPRINGBROOK WETLANDS BANK FUND
For the Year Ended December 31, 2011
BUDGETED AMOUNTS
ORIGINAL FINAL ACTUAL VARIANCE
REVENUES
Interest $ $ $ 3,231 $ 3,231
TOTAL REVENUES 3,231 3,231
EXPENDITURES
TOTAL EXPENDITURES - -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 3,231 3,231
OTHER FINANCING SOURCES (USES)
TOTAL OTHER FINANCE SOURCES (USES) - -
NET CHANGE IN FUND BALANCE 3,231 3,231
FUND BALANCE JANUARY 1 459,528 660,327 660,327 (0)
FUND BALANCE DECEMBER 31 $ 459,528 $ 660,327 $ 663,558 $ 3,231
Combining Statements & Schedules, 6-22
2011 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - GENERAL GOVERNMENTAL MISCELLANEOUS DEBT SERVICE FUND
For the Year Ended December 31, 2011
REVENUES
Taxes
Intergovernmental revenues
Interest
TOTAL REVENUES
EXPENDITURES
Debt service:
Principal payments
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
BUDGETED AMOUNTS
nDlr IN AI CIKIAI ArTI IAI vADIANirc
$ 3,915,056 $ 3,819,288 $ 3,995,842 $ 176,554
270,923 270,923 309,134 38,211
- - 11,338 11,338
4,185,979 4,090,211 4,316,314 226,103
2,620,236 2,881,423 2,783,237 (98,186)
2,094,799 2,347,681 2,376,944 29,263
4,715,035 5,229,104 5,160,181 (68,923)
1JL71VJD) kl1130,07Jj (o93100 // L7J,VLD
Transfers in
529,056
692,123
529,056
(163,067)
Refunding bonds issued
-
10,287,616
9,425,000
(862,616)
Premium on general obligation debt
-
862,616
862,616
Payment to refunded bond escrow agent
-
(9,950,001)
(9,950,000)
1
TOTAL OTHER FINANCE SOURCES (USES)
529,056
1,029,738
866,672
(163,066)
NET CHANGE IN FUND BALANCE
(109,155)
-
131,960
22,805
FUND BALANCE JANUARY 1
151,448
1,009,555
1,009,555
-
FUND BALANCE DECEMBER 31 $
151,448 $
900,400 $
1,032,360 $
131,960
Combining Statements & Schedules, 6-23
2011 Comprehensive Annual Financial Report City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGETTO ACTUAL- COMMUNITY DEVELOPMENT IMPACT MITIGATION FUND
For the Year Ended December 31, 2011
BUDGETED AMOUNTS
Combining Statements & Schedules, 6-24
ORIGINAL
FINAL
ACTUAL
VARIANCE
REVENUES
Charges for services
60,000
60,000
63,560
3,560
Interest
-
-
6,697
6,697
TOTAL REVENUES
60,000
60,000
70,257
10,257
EXPENDITURES
TOTAL EXPENDITURES
-
-
-
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
60,000
60,000
70,257
10,257
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt
-
-
61,352
61,352
Transfer in
61,352
-
(61,352)
Transfer (out)
(400,000)
(400,000)
(400,000)
TOTAL OTHER FINANCE SOURCES (USES)
(400,000)
(338,648)
61,352
400,000
NET CHANGE IN FUND BALANCE
(340,000)
(278,648)
131,609
410,257
FUND BALANCE JANUARY 1
1,126,594
1,343,446
1,343,446
0
FUND BALANCE DECEMBER 31
$ 786,594 $
1,064,798 $
1,475,055 $
410,257
Combining Statements & Schedules, 6-24
2011 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE
OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - FIRE IMPACT
MITIGATION FUND
For the Year Ended December
31, 2011
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
VARIANCE
REVENUES
Charges for services
$ 100,000 $
100,000 $
83,803
$ (16,197)
Interest
-
-
9,117
9,117
TOTAL REVENUES
100,000
100,000
92,920
(7,080)
EXPENDITURES
TOTAL EXPENDITURES
-
-
-
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
100,000
100,000
92,920
(7,080)
OTHER FINANCING SOURCES (USES)
Transfer (out)
(529,056)
(529,056)
(529,056)
TOTAL OTHER FINANCE SOURCES (USES)
(529,056)
(529,056)
(529,056)
NET CHANGE IN FUND BALANCE
(429,056)
(429,056)
(436,136)
(7,080)
FUND BALANCE JANUARY 1
1,903,522
1,928,814
1,928,814
0
FUND BALANCE DECEMBER 31
$ 1,474,466 $
1,499,758 $
1,492,678
$ (7,080)
Combining Statements & Schedules, 6-25
2011 Comprehensive Annual Financial Report
City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
BUDGET TO ACTUAL
- TRANSPORTATION IMPACT MITIGATION FUND
For the Year Ended December
31, 2011
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
VARIANCE
REVENUES
Charges for services $
240,000 $
240,000 $
182,713
$ (57,287)
Interest
10,000
10,000
5,374
(4,626)
TOTAL REVENUES
250,000
250,000
188,087
(61,913)
EXPENDITURES
TOTAL EXPENDITURES
-
-
-
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
250,000
250,000
188,087
(61,913)
OTHER FINANCING SOURCES (USES)
Transfer (out)
(499,494)
(999,494)
(650,000)
(349,494)
TOTAL OTHER FINANCE SOURCES (USES)
(499,494)
(999,494)
(650,000)
349,494
NET CHANGE IN FUND BALANCE
(249,494)
(749,494)
(461,913)
287,581
FUND BALANCE JANUARY 1
557,134
1,119,850
1,119,849
(1)
FUND BALANCE DECEMBER 31 $
307,640 $
370,356 $
657,936
$ 287,580
Combining Statements & Schedules, 6-26
2011 Comprehensive Annual Financial Report City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - MUNICIPAL FACILITIES CAPITAL IMPROVEMENT FUND
For the Year Ended December 31, 2011
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt
BUDGETED AMOUNTS
18,160,000
16,715,000
(1,445,000)
ORIGINAL
FINAL
ACTUAL
VARIANCE
REVENUES
Transfer in
2,400,000
2,400,000
2,010,822
Taxes
$ 560,000 $
560,000 $
575,234 $
15,234
Intergovernmental revenues
-
586,272
389,757
(196,515)
Charges for services
-
-
658
658
Contributions
350,000
465,786
(3,692)
(469,478)
Interest
-
-
51,568
51,568
Miscellaneous revenues
-
-
114
114
TOTAL REVENUES
910,000
1,612,058
1,013,639
(598,419)
EXPENDITURES
Current:
General government
-
-
339,122
339,122
Physical environment
160,000
-
(160,000)
Economic environment
-
-
325,731
325,731
Culture & recreation
70,000
70,000
868,867
798,867
Capital outlay
14,892,000
19,198,227
2,322,659
(16,875,568)
Debt service:
Interest payment
-
160,000
116,744
(43,256)
TOTAL EXPENDITURES
14,962,000
19,588,227
3,973,123
(15,615,104)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
(14,052,000)
(17,976,169)
(2,959,484)
15,016,685
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt
10,000,000
18,160,000
16,715,000
(1,445,000)
Premiums on bonds sold
-
-
1,405,553
1,405,553
Transfer in
2,400,000
2,400,000
2,010,822
(389,178)
Transfer (out)
-
(76,772)
(76,772)
TOTAL OTHER FINANCE SOURCES (USES)
12,400,000
20,483,228
20,054,603
(428,625)
NET CHANGE IN FUND BALANCE
(1,652,000)
14,588,060
2,507,059
17,095,119
FUND BALANCE JANUARY 1
3,457,170
5,832,452
5,832,452
-
FUND BALANCE DECEMBER 31
$ 1,805,170 $
8,339,511 $
22,927,571 $
14,588,060
Combining Statements & Schedules, 6-27
2011 Comprehensive Annual Financial Report City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - GENERAL GOVERNMENT CAPITAL IMPROVEMENT FUND
For the Year Ended December 31, 2011
BUDGETED AMOUNTS
Combining Statements & Schedules, 6-28
ORIGINAL
FINAL
ACTUAL
VARIANCE
REVENUES
Licenses and permits
$ 1,630,000 $
1,630,000 $
1,696,116 $
66,116
Intergovernmental revenues
7,633,325
12,020,549
7,706,388
(4,314,161)
Interfund revenues
-
700,000
-
(700,000)
Contributions
-
4,034,441
4,034,441
Interest
16,429
16,429
Miscellaneous revenues
-
42
42
TOTAL REVENUES
9,263,325
14,350,549
13,453,416
(897,133)
EXPENDITURES
Current:
Transportation
-
-
2,019,343
2,019,343
Capital outlay
11,632,819
19,512,542
12,565,685
(6,946,857)
Debt service:
-
-
Interest payment
-
-
9,188
9,188
TOTAL EXPENDITURES
11,632,819
19,512,542
14,594,216
(4,918,326)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
(2,369,494)
(5,161,993)
(1,140,800)
4,021,193
OTHER FINANCING SOURCES (USES)
Transfer in
1,394,494
1,619,494
1,270,000
(349,494)
Transfer (out)
(15,000)
(30,000)
-
(30,000)
TOTAL OTHER FINANCE SOURCES (USES)
1,379,494
1,589,494
1,270,000
(319,494)
NET CHANGE IN FUND BALANCE
(990,000)
(3,572,499)
129,200
3,701,699
FUND BALANCE JANUARY 1
1,060,648
4,177,188
4,177,188
-
FUND BALANCE DECEMBER 31
$ 70,648 $
604,689 $
4,306,388 $
3,701,699
Combining Statements & Schedules, 6-28
2011 Comprehensive Annual Financial Report City of Renton, Washington
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET TO ACTUAL - SOUTH LAKE WASHINGTON INFRASTRUCTURE
For the Year Ended December 31, 2011
REVENUES
Interest
TOTAL REVENUES
EXPENDITURES
Current:
Transportation
Culture & recreation
Capital outlay
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer (out)
TOTAL OTHER FINANCE SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE JANUARY 1
FUND BALANCE DECEMBER 31
$ $ $ 269 $ 269
269 269
38 58,499 58,498 (1)
$ 38 $ 499 $ 52,792 $ 52,293
Combining Statements & Schedules, 6-29
734
734
-
5,241
5,241
56,000
-
(56,000)
56,000
5,975
(50,025)
(56,000)
50,294
(5,706)
I) nnm
nnm
38 58,499 58,498 (1)
$ 38 $ 499 $ 52,792 $ 52,293
Combining Statements & Schedules, 6-29
2011 Comprehensive Annual Financial Report
COMBINING STATEMENT OF NET ASSETS
NON -MAJOR ENTERPRISE FUNDS
December 31, 2011
Page 1 of 2
City of Renton, Washington
Combining Statements & Schedules, 6-30
TOTAL
NON -MAJOR
AIRPORT
GOLF COURSE
ENTERPRISE FUNDS
ASSETS
Current assets:
Cash & cash equivalents
$ 1,416,885 $
500,592
$ 1,917,477
Investments at fair value
836,311
295,473
1,131,784
Receivables (net of allowances):
Customer accounts
61,667
39,137
100,804
Interest - investments
6,392
3,670
10,062
Due from other funds
7,441
-
7,441
Due from other governmental units
95,976
-
95,976
Inventory of materials and supplies
-
59,425
59,425
Total current assets
2,424,672
898,297
3,322,969
Noncurrent assets:
Capital assets (net)
12,858,250
8,484,411
21,342,661
TOTAL ASSETS
$ 15,282,922 $
9,382,708
$ 24,665,630
Combining Statements & Schedules, 6-30
2011 Comprehensive Annual Financial Report
LIABILITIES
Current liabilities:
Accounts payable
Interfund Loan Payable
Accrued interest payable
Accrued wages payable
Accrued taxes payable
Custodial Accounts
Total current liabilities
Long-term liabilities:
Deferred revenue
Accrued employee wages and benefits payable
Advances from other funds
Total long-term liabilities
TOTAL LIABILITIES
NET ASSETS
Investment in capital assets,
net of related debt
Unrestricted
TOTAL NET ASSETS
City of Renton, Washington
COMBINING STATEMENT OF NET ASSETS
NON -MAJOR ENTERPRISE FUNDS
December 31, 2011
Page 2 of 2
TOTAL
NON -MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
$ 134,737 $
18,966 $
153,703
94,888
366,575
461,463
2,579
2,840
5,419
42,830
56,265
99,095
64,412
9,302
73,714
-
166,767
166,767
339,446
620,715
960,161
147,359
999
148,358
27,604
57,435
85,039
199,855
1,149,907
1,349, 762
374,818
1,208,341
1,583,159
714,264
1,829,056
2,543,320
12,858,250 8,484,411 21,342,661
1,710,408 (930,759) 779,649
$ 14,568,658 $ 7,553,652 $ 22,122,310
Combining Statements & Schedules, 6-31
2011 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
NON - MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2011
OPERATING REVENUES:
Charges for services
TOTAL OPERATING REVENUES
OPERATING EXPENSES:
Operations and maintenance
Administrative and general
Taxes
Depreciation
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES(EXPENSES):
Intergovernmental revenues
Interest revenues
Other non-operating revenues(expenses)
Interest expense
NON-OPERATING REVENUE NET OF EXPENSES
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS
Operating transfers (out)
CHANGE IN NET ASSETS
NET ASSETS, JANUARY 1
NET ASSETS, DECEMBER 31
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
TOTAL
NON -MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
$ 2,294,383 $
2,014,983 $
4,309,366
2,294,383
2,014,983
4,309,366
1,388,955
1,229,469
2,618,424
78,030
523,625
601,655
2,093
10,247
12,340
545,005
295,071
840,076
2,014,083
2,058,412
4,072,495
280,300
(43,429)
236,871
242,722
-
242,722
9,074
5,247
14,321
2,749
2,797
5,546
(12,723)
(41,524)
(54,247)
241,822
(33,480)
208,342
(76,909)
522,122
445,213
(8,848) (656) (9,504)
nv
Jla'41 r �/i,wj) �aj'ivy
14,055,384 7,631,217 21,686,601
$ 14,568,658 $ 7,553,652 $ 22,122,310
Combining Statements & Schedules, 6-32
2011 Comprehensive Annual Financial Report
STATEMENT OF CASH FLOWS
NON -MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2011
Page 1 of 2
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services
Cash paid to suppliers for goods & services
Cash paid to employees
Other operating receipts
Other non-operating receipts
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets
Principal payments on debt
Interest payments on debt
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for investments
Interest on investments
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES
NET INCREASE(DECREASE)IN CASH &
CASH EQUIVALENTS
CASH & CASH EQUIVALENTS, JANUARY 1
CASH , RESTRICTED CASH ,& CASH EQUIVALENTS,
DECEMBER 31
City of Renton, Washington
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
TOTAL
NON -MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
$ 2,517,319 $
2,008,028 $
4,525,347
(1,582,888)
(1,765,172)
(3,348,060)
16,839
6,974
23,813
158,874
-
158,874
2,749
(38,727)
(35,978)
1,112,893
211,103
1,323,996
(8,848)
(656)
(9,504)
(8,848)
(656)
(9,504)
(197,427)
(111,048)
(308,475)
(91,678)
(358,518)
(450,196)
(672)
(672)
(289,105)
(470,238)
(759,343)
(164,995)
192,775
27,780
(9,456)
2,886
(6,570)
(174,451)
195,661
21,210
640,489
(64,130)
576,359
776,396
564,722
1,341,118
$ 1,416,885 $
500,592 $
1,917,477
Combining Statements & Schedules, 6-33
2011 Comprehensive Annual Financial Report
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization of
deferred charges
Other non-operating revenue
(Increase) decrease in
accounts receivable
(Increase) decrease in due from
other funds/governmental units
(Increase) decrease in inventory
& prepaid items
Increase(decrease)in vouchers
retainage payable
Increase(decrease)in payables
& other short-term liabilities
Increase (decrease)in
customer deposits
Increase (decrease)in
deferred revenues
Increase (decrease)in accrued
employee leave benefits
Total adjustments
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Depreciation
City of Renton, Washington
STATEMENT OF CASH FLOWS
NON -MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2011
Page 2 of 2
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
TOTAL
NON -MAJOR
AIRPORT GOLF COURSE ENTERPRISE FUNDS
$ 280,300 $ (43,429) $ 236,871
545,005
295,071
840,076
245,471
(38,727)
206,744
112,359
(17,484)
94,875
(83,848)
(83,848)
(9,670)
(9,670)
(109,279)
17,898
(91,381)
(4,531)
(10,126)
(14,657)
-
9,597
9,597
110,577
999
111,576
16,839
6,974
23,813
832,593
254,532
1,087,125
$ 545,005 $ 295,071 $ 840,076
Combining Statements & Schedules, 6-34
2011 Comprehensive Annual Financial Report
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2011
Page 1 of 2
ASSETS
Current assets:
Cash & cash equivalents
Investments at fair value
Receivables (net of allowances):
Customer accounts
Interest - investments
Due from other funds
Due from other governmental units
Prepayments
Total current assets
Noncurrent assets:
Capital assets (net)
Intangible assets (net)
Total noncurrent assets
TOTAL ASSETS
EQUIPMENT
RENTAL
$ 4,874,911 $
2,877,397
INSURANCE
FUND
12,016,215 $
7,092,524
City of Renton, Washington
TOTAL
INTERNAL
SERVICE FUNDS
16,891,126
9,969,921
21,963
11,462
33,425
27,777
62,718
90,495
56,301
-
56,301
42,117
-
42,117
144,418
93,982
238,400
8,044,884
19, 276,901
27, 321,785
8,376,720
2A2 114
8,720,048 -
$ 16,764,932 $ 19,276,901 $
8,376,720
343,328
8,720,048
36,041,833
Combining Statements & Schedules, 6-35
2011 Comprehensive Annual Financial Report
LIABILITIES
Current liabilities:
Accounts payable
Claims incurred but not reported
Accrued employee benefits payable
Accrued taxes payable
Total current liabilities
Long-term liabilities:
Accrued employee wages and benefits payable
Total long-term liabilities
TOTAL LIABILITIES
NET ASSETS
Investment in capital assets,
Net of related debt
Restricted
Unrestricted
TOTAL NET ASSETS
City of Renton, Washington
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2011
Page 2 of 2
EQUIPMENT
RENTAL
INSURANCE
FUND
TOTAL
INTERNAL
SERVICE FUNDS
$ 368,423 $
196,454 $
564,877
-
2,442,195
2,442,195
309,104
23,923
333,027
1,988
-
1,988
679,515
2,662,572
3,342,087
323,727
21,512
345,239
323,727
21,512
345,239
1,003,242
2,684,084
3,687,326
8,720,048 - 8,720,048
- 5,342,695 5,342,695
7,041,642 11, 250,122 18, 291,764
$ 15,761,690 $ 16,592,817 $ 32,354,507
Combining Statements & Schedules, 6-36
2011 Comprehensive Annual Financial Report
City of Renton, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2011
OPERATING REVENUES:
Charges for services
Other operating revenues
TOTAL OPERATING REVENUES
OPERATING EXPENSES:
Operations and maintenance
Administrative and general
Taxes
Depreciation
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES (EXPENSES):
Intergovernmental revenues
Interest revenues
Gain (loss) on sale of capital assets
Other non-operating revenues (expenses)
NON-OPERATING REVENUE NET OF EXPENSE
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS
Transfers in
Transfers (out)
CHANGE IN NET ASSETS
NET ASSETS, JANUARY 1
NET ASSETS, DECEMBER 31
TOTAL
EQUIPMENT INSURANCE INTERNAL
RENTAL FUND SERVICE FUNDS
$ 12,407,073 $
2,971,206 $
15,378,279
87,972
12, 662,645
12, 750,617
12,495,045
15, 633,851
28,128,896
10,504,327
12,786,522
23,290,849
333,094
564,336
897,430
13,810
2,553
16,363
1,887,334
-
1,887,334
12,738,565
13,353,411
26,091,976
(243,520)
2,280,440
2,036,920
187,372
37,673
225,045
39,043
87,690
126,733
16,539
-
16,539
238,039
649,019
887,058
480,993
774,382
1,255,375
3,054,822
237,473
3,292,295
179,907
179,907
Y1/,JOV J,VJY,OLL J,Y/L,LVL
15,344,310 13,537,995 28,882,305
$ 15,761,690 $ 16,592,817 $ 32,354,507
Combining Statements & Schedules, 6-37
2011 Comprehensive Annual Financial Report
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2011
Page 1 of 2
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from other funds for services
Cash paid to suppliers for goods & services
Cash paid to employees
Other operating receipts
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to/from other funds
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:
Acquisition & construction of capital assets
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for investments
Interest on investments
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES
NET INCREASE(DECREASE)IN CASH &
CASH EQUIVALENTS
CASH & CASH EQUIVALENTS, JANUARY 1
CASH & CASH EQUIVALENTS, DECEMBER 31
City of Renton, Washington
EQUIPMENT
RENTAL
INSURANCE
FUND
TOTAL
INTERNAL
SERVICE FUNDS
$ 12,466,926 $
15,636,518 $
28,103,444
(10,562,685)
(10,630,695)
(21,193,380)
53,377
20,032
73,409
441,950
(2,368,130)
(1,926,180)
179,907
179,907
179,907
179,907
(2,601,853)
(2,601,853)
(2,601,853)
(2,601,853)
719,171
516,870
1,236,041
18,565
40,994
59,559
737,736
557,864
1,295,600
715,358
3,215,589
3,930,947
4,159,553
8,800,626
12,960,179
$ 4,874,911 $
12,016,215 $
16,891,126
Combining Statements & Schedules, 6-38
2011 Comprehensive Annual Financial Report
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2011
Page 2 of 2
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income
(loss) to net cash provided (used)
by operating activities:
Depreciation & amortization of
deferred charges
Other non-operating revenue
(Increase) decrease in
accounts receivable
(Increase) decrease in due from
other funds/governmental units
(Increase) decrease in inventory
& prepaid items
Increase(decrease)in vouchers
retainage payable
Increase (decrease)in payables
& other short-term liabilities
Increase (decrease)in accrued
employee leave benefits
Total adjustments
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
NONCASH INVESTING, CAPITAL, AND
FINANCING ACTIVITIES
Depreciation & amortization
City of Renton, Washington
Combining Statements & Schedules, 6-39
TOTAL
EQUIPMENT
INSURANCE
INTERNAL
RENTAL
FUND
SERVICE FUNDS
$ 2,280,440
$ 2,036,920
$ (243,520)
1,887,334
-
1,887,334
441,950
686,692
1,128,642
8,798
2,667
11,465
114,426
742,714
857,140
6,144
13,647
19,791
153,946
-
153,946
(16,743)
(1,074,820)
(1,091,563)
47,233
6,385
53,618
2,643,088
377,285
3,020,373
$ 2,399,568
$ 2,657,725
$ 5,057,293
$ 1,887,334
$ -
$ 1,887,334
Combining Statements & Schedules, 6-39
2011 Comprehensive Annual Financial Report
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND - SPECIAL DEPOSIT
For the Year Ended December 31, 2011
Page 1 of 1
City of Renton, Washington
Combining Statements & Schedules, 6-40
BEGINNING
ENDING
BALANCE
DEBITS
CREDITS
BALANCE
ASSETS
Cash
$
518,893
$
865,321
$ 745,903
$ 638,311
Investments at fair value
390,400
390,400
780,800
-
TOTAL ASSETS
$
909,293
$
1,255,721
$ 1,526,703
$ 638,311
LIABILITIES
Vouchers & contracts payable
$
63,706
$
668,907
$ 613,152
$ 7,951
Deposits payable
845,587
673,633
458,406
630,360
TOTAL LIABILITIES
$
909,293
$
1,342,540
$ 1,071,558
$ 638,311
Combining Statements & Schedules, 6-40
2011 Comprehensive Annual Financial Report
STATISTICAL SECTION
December 31, 2011
City of Renton, Washington
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.
Statistical Section, 7-1
2011 Comprehensive Annual Financial Report
TABLE 1
NET ASSETS BY COMPONENT
LAST TEN FISCAL YEARS'
(Accrual basis of accounting)
City of Renton, Washington
Source : City of Renton Finance Division
'The City implemented GASB Statement No. 34 during 2003; historical information prior to 2003 is not available
Statistical Section, 7-2
2003
2004
2005
2006
2007
2008
2009
2010
2011
Governmental activities
Invested in capital assets, net of related debt
$
89,360,313
$
195,282,055
$
203,297,293
$
209,964,556
$
232,714,563
$
353,197,782
$
378,440,636
$
383,016,494
$
373,641,842
Restricted
6,816,559
21,460,395
28,578,305
42,261,663
32,648,993
33,294,987
20,882,824
11,664,101
26,432,127
Unrestricted
41,699,232
25,746,196
29,272,573
29,340,290
32,075,613
34,160,010
35,033,629
45,911,214
53,244,297
Total governmental activities net assets
$
137,876,104
$
242,488,646
$
261,148,171
$
281,566,509
$
297,439,169
$
420,652,779
$
434,357,089
$
440,591,809
$
453,318,266
Business -type activities
Invested in capital assets, net of related debt
$
158,886,497
$
163,891,546
$
171,827,746
$
181,515,939
$
188,518,151
$
202,255,997
$
208,682,683
$
214,001,083
$
217,103,722
Restricted
3,048,210
3,555,690
3,555,690
3,555,690
3,586,667
4,171,525
4,029,537
58,747
-
Unrestricted
15,886,887
21,612,156
21,541,563
19,357,695
17,973,237
17,430,207
18,209,611
17,743,107
23,340,910
Total business -type activities net assets
$
177,821,594
$
189,059,392
$
196,924,999
$
204,429,324
$
210,078,055
$
223,857,729
$
230,921,831
$
231,802,937
$
240,444,632
Primary government
Invested in capital assets, net of related debt
$
248,246,810
$
359,173,601
$
375,125,039
$
391,480,495
$
421,232,714
$
555,453,779
$
587,123,319
$
597,017,577
$
590,745,564
Restricted
9,864,769
25,016,085
32,133,995
45,817,353
36,235,660
37,466,512
24,912,361
11,722,848
26,432,127
Unrestricted
57,586,119
47,358,352
50,814,136
48,697,985
50,048,850
51,590,217
53,243,240
63,654,321
76,585,207
Total primary government net assets
$
315,697,698
$
431,548,038
$
458,073,170
$
485,995,833
$
507,517,224
$
644,510,508
$
665,278,920
$
672,394,746
$
693,762,898
Source : City of Renton Finance Division
'The City implemented GASB Statement No. 34 during 2003; historical information prior to 2003 is not available
Statistical Section, 7-2
2011 Comprehensive Annual Financial Report City of Renton, Washington
TABLE 2
CHANGES IN NET ASSETS
LAST TEN FISCAL YEARS'
(Accrual basis of accounting)
Page 1 of 2
EXPENSES
2003
2004
2005
2006
2007
2008
2009
2010
2011
Government activities:
Government activities:
General government
$ 24,365,244
$ 22,144,567
$ 21,137,856
$ 19,977,086
$ 29,112,970
$ 12,010,422
$ 18,808,404
$ 10,018,501
$ 4,268,321
Judicial
1,258,956
1,340,655
1,380,816
1,434,134
1,845,031
1,761,665
2,134,283
2,402,692
2,563,989
Public safety
26,238,548
28,647,443
29,496,791
30,749,762
36,213,120
46,289,454
44,361,089
50,657,146
52,627,849
Physical environment
2,013,239
2,278,445
2,208,340
2,618,832
2,749,417
3,333,471
2,440,801
2,425,279
2,151,322
Transportation
4,221,713
6,797,356
4,183,880
15,798,138
11,237,287
13,675,581
11,765,835
16,903,492
25,376,308
Economic environment
5,886,795
5,519,929
5,899,796
6,372,118
6,880,687
6,823,426
6,669,911
7,363,396
6,491,151
Health and human services
21,646
228,966
300,171
295,072
301,495
325,066
328,333
882,740
819,138
Culture and recreation
8,689,666
10,303,074
9,744,692
9,695,924
11,036,931
17,025,800
16,992,266
13,518,312
11,955,737
Interest on long-term debt
1,827,464
1,627,581
1,710,346
1,772,370
2,594,784
2,663,436
2,848,081
2,127,347
2,165,960
Total Governmental activities expenses
74,523,271
78,888,016
76,062,688
88,713,436
101,971,722
103,908,321
106,349,003
106,298,905
108,419,775
Business -type activities:
3,732,443
6,213,791
4,979,601
4,596,836
5,265,737
9,570,931
11,029,657
10,520,151
Waterworks utility
22,381,464
23,347,678
25,884,227
27,220,132
28,657,468
32,738,366
35,617,861
36,574,469
37,148,813
Airport
1,219,465
936,305
1,226,810
1,196,363
1,396,054
1,733,894
1,865,481
1,993,202
2,026,804
Solid waste utility
8,516,598
8,558,441
9,327,525
9,706,016
10,606,560
11,518,047
14,143,956
14,826,315
14,434,201
Golfcourse
1,831,670
1,933,113
2,132,077
2,056,874
2,277,454
2,334,838
2,303,192
2,296,870
2,099,936
Total Business -type activities net assets
33,949,197
34,775,537
38,570,639
40,179,385
42,937,536
48,325,145
53,930,490
55,690,856
55,709,754
Total Primary Government expenses
108,472,468
113,663,553
114,633,327
128,892,821
144,909,258
152,233,466
160,279,493
161,989,761
164,129,529
PROGRAM REVENUES
Government activities:
Charges for services:
General government
16,716,472
15,579,366
17,525,244
21,852,465
23,163,645
5,614,638
2,864,232
2,363,280
2,756,613
Judicial
1,287,901
1,531,773
697,883
831,485
1,169,581
2,420,913
5,176,402
3,706,436
3,565,216
Public safety
929,780
200,149
247,235
517,151
591,586
550,773
643,970
761,835
641,483
Physical environment
759,700
837,027
894,750
400,798
999,484
864,581
951,940
1,233,424
1,015,323
Transportation
1,519,383
1,916,862
1,660,698
1,628,154
1,432,215
2,165,538
3,178,543
3,111,259
3,275,596
Economic environment
4,969,475
4,236,596
4,516,899
4,368,399
7,857,186
4,236,983
1,965,125
2,419,488
2,486,396
Culture and recreation
1,460,879
1,507,387
1,558,458
1,742,071
1,649,960
1,739,055
2,377,290
2,299,635
1,793,863
Operating grants and contributions
3,732,443
6,213,791
4,979,601
4,596,836
5,265,737
9,570,931
11,029,657
10,520,151
15,540,897
Capital grants and contributions
1,094,764
1,745,718
1,227,503
5,909,870
4,940,471
18,109,124
16,091,934
9,102,331
12,135,982
Total governmental activities program revenues
32,470,797
33,768,669
33,308,271
41,847,229
47,069,865
45,272,536
44,279,093
35,517,839
43,211,369
Business -type activities:
Charges for services:
Business -type charges
37,077,258
38,917,114
40,029,830
40,056,079
45,403,349
44,651,684
50,901,497
55,064,203
62,328,294
Operating grants and contributions
222,193
112,616
196,974
77,688
243,537
264,784
46,267
125,819
465,468
Capital grants and contributions
6,600,471
6,583,241
5,101,699
6,317,203
1,761,802
6,888,975
7,556,701
1,056,961
2,473,309
Total business -type activities program revenues
43,899,922
45,612,971
45,328,503
46,450,970
47,408,688
51,805,443
58,504,465
56,246,983
65,267,071
Total primary government program revenues
$
76,370,719
$ 79,381,640
$ 78,636,774
$ 88,298,199
$ 94,478,553
$ 97,077,979
$ 102,783,558
$ 91,764,822
$
108,478,440
Net
Governmental activities
$
(42,052,474)
$ (45,119,347)
$ (42,754,417)
$ (46,866,207)
$ (54,901,857)
$ (58,635,785)
$ (62,069,910)
$ (70,781,066)
$
(65,208,406)
Business -type activities
9,950,725
10,837,434
6,757,864
6,271,585
4,471,152
3,480,298
4,573,975
556,127
9,557,317
Total primary government net expense
$
(32,101,749)
$ (34,281,913)
$ (35,996,553)
$ (40,594,622)
$ (50,430,705)
$ (55,155,487)
$ (57,495,935)
$ (70,224,939)
$
(55,651,089)
Statistical Section, 7-3
2011 Comprehensive Annual Financial Report
GENERAL REVENUES AND OTHER CHANGES
Governmental activities:
Taxes
Property taxes
Retail sales taxes
Business taxes
Excise taxes
Penalties and interest
Investment earnings
Miscellaneous
Transfers
Total governmental activities
Business -type activities:
Investment earnings
Miscellaneous
Transfers
Total business -type activities
Total primary government
CHANGES IN NET ASSETS
Governmental activities
Business -type activities
Total primary government
TABLE 2
CHANGES IN NET ASSETS
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Page 2 of 2
2003 2004 2005 2006 2007 2008
City of Renton, Washington
2009 2010 2011
$ 19,520,575
$ 19,578,390
$ 21,523,818
$ 23,600,131
$ 23,106,578
$ 29,381,036
$ 32,300,319
$ 32,586,884
$ 33,309,975
17,334,831
18,281,949
18,910,823
20,869,595
22,749,831
23,190,076
22,065,316
21,591,375
22,008,777
10,895,130
9,957,129
10,643,068
11,219,303
11,962,879
14,945,173
14,876,496
16,883,888
16,870,284
5,449,877
6,751,264
6,938,265
7,718,945
8,236,876
4,362,945
4,923,978
4,351,914
4,113,705
5,415
6,048
49
3,799
33,949
6,477
1,353
276
380
1,081,398
1,291,669
1,449,001
3,251,975
3,465,517
2,419,260
1,118,889
794,793
602,516
312,867
4,346,619
1,958,217
689,243
1,218,889
2,104,133
172,594
82,352
991,772
(40,000)
(10,304)
(9,300)
(68,446)
-
110,000
(100,000)
(17,095)
37,454
54,560,093
60,202,764
61,413,941
67,284,545
70,774,519
76,519,100
75,358,945
76,274,387
77,934,863
242,055
270,605
458,797
881,486
1,041,576
1,120,342
396,957
224,974
117,090
369,513
119,455
639,646
282,808
135,986
85,493
1,207,689
172,663
71,235
40,000
10,304
9,300
68,446
-
(110,000)
100,000
17,095
(37,454)
651,568
400,364
1,107,743
1,232,740
1,177,562
1,095,835
1,704,646
414,732
150,871
$ 55,211,661
$ 60,603,128
$ 62,521,684
$ 68,517,285
$ 71,952,081
$ 77,614,935
$ 77,063,591
$ 76,689,119
$ 78,085,734
$ 12,507,619 $ 15,083,417 $ 18,659,524 $ 20,418,338 $ 15,872,662 $ 17,883,315 $ 13,289,035 $ 5,493,321 $ 12,726,457
10,602,293 11,237,798 7,865,607 7,504,325 5,648,714 4,576,133 6,278,621 970,859 9,708,188
$ 23,109,912 $ 26,321,215 $ 26,525,131 $ 27,922,663 $ 21,521,376 $ 22,459,448 $ 19,567,656 $ 6,464,180 $ 22,434,645
'The City implemented GASB Statement No. 34 during 2003; historical information prior to 2003 is not available.
Source : City of Renton Finance Division
Statistical Section, 7-4
2011 Comprehensive Annual Financial Report
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
City of Renton, Washington
TABLE 3
FUND BALANCE OF GOVERNMENT FUNDS
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
W General fund ® All other governmental funds
Source : City of Renton Finance Division
' In 2011, implementation of GASB 54 requires new designations of fund balance; prior year data not available in presribed format
Statistical Section, 7-5
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
General fund
Reserved
$ 83,000
$ 83,000
$ 108,742
$ 8,000
$ 8,000
$ 8,000
$ 8,000
$ 8,000
$ 2,468,569
$
Unreserved
3,920,136
6,758,364
8,603,003
9,189,871
10,737,097
16,474,384
13,509,097
13,478,727
12,020,420
-
Nonspendablel
-
-
-
-
-
-
-
-
-
1,149,907
Restricted'
786,611
Committed'
-
Assigned'
13,812,258
Unassigned'
-
Total general fund
$ 4,003,136
$ 6,841,364
$ 8,711,745
$ 9,197,871
$ 10,745,097
$ 16,482,384
$ 13,517,097
$ 13,486,727
$ 14,488,989
$ 15,748,776
All other governmental funds
Reserved
$ 1,260,000
$ 880,000
$ 500,000
$ 240,000
$ 63,900
$ 975,000
$ 1,000,000
$ -
$ 6,771,384
$ -
Unreserved, reported in:
Special revenue funds
3,361,529
3,985,917
3,238,246
2,929,692
4,243,189
2,616,596
2,806,667
2,106,370
2,073,227
Debt service funds
2,030,335
1,916,243
1,486,894
2,752,445
3,068,587
1,392,915
1,270,936
367,652
-
Capital project funds
33,742,638
22,628,512
26,202,437
27,890,457
42,152,437
29,057,397
29,217,384
18,408,802
8,701,843
-
Nonspendable'
-
-
-
-
-
-
-
-
-
-
Restricted'
19,152,913
Committed'
7,468,491
Assigned'
6,828,410
Total all other governmental funds
$ 40,394,502
$ 29,410,672
$ 31,427,577
$ 33,812,594
$ 49,528,113
$ 34,041,908
$ 34,294,987
$ 20,882,824
$ 17,546,454
$ 33,449,814
Source : City of Renton Finance Division
' In 2011, implementation of GASB 54 requires new designations of fund balance; prior year data not available in presribed format
Statistical Section, 7-5
2011 Comprehensive Annual Financial Report City of Renton, Washington
TABLE 4
CHANGES IN FUND BALANCES OF GOVERNMENT FUND'
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines
Interfund revenues
Special assessments
Contributions
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Judicial
Public safety
Physical environment
Transportation
Economic environment
Health and human services
Culture and recreation
Capital outlay
Debt service
Principal
Interest
Total expenditures
Excess of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds of long-term debt
Interfund loan proceeds
Interfund loan repayments
Refunding bonds issued
GO Bonds issued
Premium on general obligation debt
Sale of capital assets
Payment to refunded bond escrow agent
Total other financing sources (uses)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
$ 49,901,849 $ 53,722,322 $ 55,344,506 $ 58,794,081 $ 64,005,567 $ 66,698,876 $ 72,514,388 $ 71,545,700 $ 75,223,750 $ 76,266,688
4,229,501
4,226,883
4,329,086
4,686,608
4,962,507
5,828,230
4,975,585
6,226,371
3,975,441
4,410,862
6,212,359
4,533,544
7,570,570
5,687,169
9,769,225
9,791,830
27,549,621
23,968,449
16,203,499
19,441,957
7,777,778
6,016,704
6,593,153
5,563,289
6,543,289
10,048,879
7,145,950
4,543,420
4,635,502
4,191,024
1,043,199
1,055,564
1,008,984
731,286
906,685
1,150,079
2,002,854
3,724,162
3,439,926
3,150,326
-
3,482,110
3,638,574
3,796,042
2,843,147
3,352,411
3,072,526
3,228,110
3,244,928
3,057,642
312,908
295,673
20,852
23,340
511,932
51,723
-
1,353
-
-
118,103
255,102
249,938
317,600
214,387
353,582
135,000
516,805
2,952,649
4,288,448
1,073,538
1,081,420
1,059,886
1,060,353
2,570,682
2,486,889
1,740,035
753,607
550,134
475,278
1,198,846
40,314
122,799
569,881
223,908
86,322
1,273,359
171,004
82,353
648,608
71,868,081
74,709,636
79,938,348
81,229,649
92,551,329
99,848,821
120,409,318
114,678,981
110,308,182
115,930,833
12,523, 577
13, 283,955
13,660,095
14,382,634
13, 972,592
14, 597, 355
15,094,140
12,923,999
10,532,537
10,937,806
-
-
-
-
-
-
1,761,665
2,134,283
2,402,692
2,563,989
24,924,380
26,029,354
27,462,613
29,031,626
31,157,303
35,583,500
45,530,208
46,048,967
48,904,653
52,986,589
1,898,665
2,015,562
2,201,777
2,190,228
2,609,452
2,764,563
3,123,883
2,431,213
2,345,459
2,048,971
10,622,373
4,461,387
4,615,345
4,711,924
5,097,449
6,403,358
6,332,006
7,043,665
10,748,393
10,038,344
4,479,582
4,613,587
4,947,080
5,123,024
5,519,219
5,896,589
6,673,681
7,071,009
7,205,500
6,447,163
11,445
10,368
11,723
12,700
9,231
13,818
16,459
19,726
787,768
511,934
7,382,069
7,585,936
8,563,967
8,876,250
9,933,854
10,830,224
11,119,073
14,914,298
12,310,530
11,166,081
10,532,479
21,089,534
13,246,669
11,438,104
21,117,525
29,320,023
28,520,453
41,989,793
12,216,152
14,981,858
1,849,269 1,417,042 1,477,579 1,375,738 1,503,350 1,565,904 2,079,551 2,327,138 2,682,672 2,783,237
1,382,717 1,833,102 1,763,893 1,713,525 2,129,656 2,646,623 2,729,247 2,629,157 2,231,823 2,502,876
75,606,556 82,339,827 77,950,741 78,855,753 93,049,631 109,621,957 122,980,366 139,533,248 112,368,179 116,968,848
(3,738,475) (7,630,191) 1,987,607 2,373,896 (498,302) (9,773,136) (2,571,048) (24,854,267) (2,059,997) (1,038,015)
9,441,451
3,511,700
6,563,978
5,476,360
2,962,895
5,782,988
4,053,607
15,059,649
2,545,659
3,886,650
(10,009,962)
(3,551,700)
(7,764,278)
(5,443,660)
(3,705,341)
(5,782,988)
(4,200,607)
(10,446,000)
(2,822,330)
(4,144,157)
3,879,038
18,490,029
-
860,000
-
6,798,085
(860,000)
-
-
-
6,170,000
9,425,000
-
16,715,000
443,484
2,268,169
104,825
171,249
117,328
464,547
13,464
24,218
20,643
-
500
-
-
-
-
-
-
-
-
(6,406,088)
(9,950,000)
3,415,352
131,249
(1,082,972)
497,247
17,761,047
24,218
(126,357)
11,411,734
(69,275)
18,201,162
Net change in fund balances $ (323,123) $ (7,498,942) $ 904,635 $ 2,871,143 $ 17,262,745 $ (9,748,918) $ (2,697,405) $ (13,442,533) $ (2,129,272) $ 17,163,147
Debt service as a percentage of
non capital expenditures 4.97% 5.31% 5.01% 4.58% 5.05% 5.25% 5.09% 5.08% 4.91% 5.18%
Source : City of Renton Finance Division
Tables 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.
Statistical Section, 7-6
2011 Comprehensive Annual Financial Report
$90,000,000
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
TABLE 5
GENERAL GOVERNMENT TAX REVENUE BY SOURCE
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
City of Renton, Washington
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
W Property Tax O Sales Tax J Admission/Utility Tax 0 Excise Tax W Penalty, Interest, Delinquent Tax
FISCAL
YEAR
PROPERTY
TAX
SALES TAX
ADMISSION
UTILITY TAX
EXCISE TAX
INTEREST
DELINQUENT
TAX
2002
18,373,237
16,431,456
9,798,260
4,711,446
4,404
2003
19,587,986
17,334,831
10,895,131
5,449,877
5,415
2004
19,886,805
18,281,949
9,957,130
6,751,265
6,048
2005
21,826,229
18,910,822
10,643,068
6,938,264
49
2006
23,600,131
20,869,596
11,219,302
7,718,945
3,799
2007
23,106,578
22,749,831
11,962,879
8,236,876
33,949
2008
29,381,036
23,190,076
14,945,173
4,362,945
6,477
2009
32,300,319
22,065,316
14,876,496
4,923,978
1,353
2010
32,586,884
21,591,375
16,883,888
4,351,914
276
2011
33,309,975
22,008,777
16,870,284
4,113,705
380
Source : City of Renton Finance Division
TOTALTAX
49,318,803
53,273,240
54,883,197
58,318,433
63,411,773
66,090,113
71,885,707
74,167,462
75,414,337
76,303,121
Statistical Section, 7-7
2011 Comprehensive Annual Financial Report
TABLE 6
PRINCIPAL PROPERTY TAX PAYERS
December 31, 2011
City of Renton, Washington
Source: `King County Department of Assessments
Statistical Section, 7-8
2011
2002
% OF TOTAL
% OF TOTAL
TAXABLE'
TAXABLE
TAXABLE
TAXABLE
ASSESSED
ASSESSED
ASSESSED
ASSESSED
TAXPAYER
VALUE
RANK
VALUE
VALUE
RANK
VALUE
Boeing
$ 765,951,604
1
6.67%
$ 733,174,709
1
13.11%
Paccar
83,847,100
2
0.73%
86,464,606
2
1.55%
Puget Sound Energy-Elec/Gas
76,550,185
3
0.67%
75,240,601
3
1.35%
Transwestern Harvest Lakeshore
69,486,249
4
0.61%
Renton Properties LLC
52,108,900
5
0.45%
47,040,200
4
0.84%
Fred Meyer Stores Inc.
44,300,759
6
0.39%
Axis Grand Holdings
41,166,000
7
0.36%
Providence Health
38,786,186
8
0.34%
ECI Two WTC LLC (WTCTPI LLC)
37,194,900
9
0.32%
Renton Acquisition LLC
(Walton Renton Investors III)
30,713,800
10
0.27%
US West
40,761,767
5
0.73%
Speiker Properties LP
38,522,502
6
0.69%
National Tax Search, LLC
38,363,300
7
0.69%
Rosche One Interests
24,816,400
8
0.44%
Washington Mutual Bank
23,409,861
9
0.42%
Avalon Bay Communities Inc
21,206,000
10
0.38%
All Others
10,240,360,678
89.20%
4,464,880,542
79.82%
Total Assessed Valuation
$ 11,480,466,361
100.00%
$ 5,593,880,488
100.00%
Source: `King County Department of Assessments
Statistical Section, 7-8
2011 Comprehensive Annual Financial Report
14,000,000,000
12,000,000,000
10,000,000,000
8,000,000,000
6,000,000,000
4,000,000,000
2,000,000,000
City of Renton, Washington
TABLE 7
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
2002 2003 2004 2005 2006
Id Total Taxable Assessed Value -1 Direct Tax Rate
REAL PROPERTY 1
FISCAL
RESIDENTIAL
COMMERCIAL
PERSONAL
YEAR
PROPERTY
PROPERTY
PROPERTY
2002
$ 2,810,986,787
$ 2,008,043,209
$ 774,850,492 $
2003
2,314,785,310
2,921,167,960
747,879,276
2004
3.354
3.277
3.327
3.227
3.116_
2.832
2.884 2.624 2.712
2.369
1,997,241,116
656,709,434
2006
2002 2003 2004 2005 2006
Id Total Taxable Assessed Value -1 Direct Tax Rate
REAL PROPERTY 1
FISCAL
RESIDENTIAL
COMMERCIAL
PERSONAL
YEAR
PROPERTY
PROPERTY
PROPERTY
2002
$ 2,810,986,787
$ 2,008,043,209
$ 774,850,492 $
2003
2,314,785,310
2,921,167,960
747,879,276
2004
2,598,752,772
3,057,565,937
716,313,413
2005
4,043,821,357
1,997,241,116
656,709,434
2006
4,510,574,558
2,169,976,740
636,713,076
2007
5,157,095,492
2,439,123,680
754,326,325
2008
6,075,180,284
2,738,107,048
828,746,994
2009
9,073,798,071
3,246,587,967
885,490,676
2010
7,759,903,272
3,253,718,932
840,554,180
2011
6,536,356,583
4,089,930,106
821,141,161
Sources:
11,480, 466, 361
2.832
124,349
1King County Department of Assessments
2Exempt data not available before 2006
3Includes Tax Exempt Property
►�1I1y�Z1I1I:��1I1�iI1y 111413 11111 1
TAX EXEMPT
ASSESSED
REAL
TOTAL ASSESSED
DIRECT TAX
VALUE PER
PROPERTY 1,2
VALUE
RATE 1
CAPITA
$ 5,593,880,488
3.354
$ 103,898
5,983,832,546
3.277
108,995
6,372,632,122
3.327
115,113
6,697,771,907
3.227
117,836
17,212,168
7,334,476,542
3.116
125,971
20,256,008
8,370,801,505
2.884
139,178
17,643,328
9,659,677,654
2.624
122,840
27,368,066
13,233,244,780
2.369
158,525
30,552,056
11,884,728,440
2.712
138,180
33, 038, 511
11,480, 466, 361
2.832
124,349
Statistical Section, 7-9
2011 Comprehensive Annual Financial Report
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
City of Renton, Washington
TABLE 8
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Total City f�JTotal County Total special districts o Total school districts (Total direct and overlapping
DIRECT RATES OVERLAPPING RATES
CITY OF RENTON COUNTY SCHOOL DISTRICT
FISCAL
OPERATING
DEBT
TOTAL
OPERATING
DEBT
TOTAL
SPECIAL
YEAR
MILLAGE
SERVICE MILLAGE
CITY MILLAGE
VILLAGE
SERVICE MILLAGE
COUNTY MILLAGE
DISTRICTS'
2002
3.26036
0.09397
3.35433
1.19751
0.25198
1.44949
0.53599
2003
3.18871
0.08865
3.27736
1.15386
0.19562
1.34948
0.59292
2004
3.16022
0.08322
3.24344
1.18279
0.24867
1.43146
0.58319
2005
3.14843
0.07861
3.22704
1.15665
0.22564
1.38229
0.57542
2006
3.04482
0.07088
3.11570
1.09915
0.22954
1.32869
1.04312
2007
2.82148
0.06252
2.88400
1.08814
0.20142
1.28956
0.99431
2008
2.57052
0.05330
2.62382
1.04278
0.16492
1.20770
1.03213
2009
2.36923
-
2.36923
0.95271
0.14501
1.09772
0.94245
2010
2.71184
2.71184
1.16171
0.12328
1.28499
1.04887
2011
2.83207
2.83207
1.21418
0.12398
1.33816
1.08119
Source: King County Codes and Levies
Special Districts include Emergency Medical Services, Port and Hospital districts
Statistical Section, 7-10
TOTAL DIRECT
DEBT
TOTAL
TOTAL
AND
OPERATING
SERVICE
SCHOOL
OVERLAPPING
OVERLAPPING
MILLAGE
MILLAGE
MILLAGE
MILLAGE
MILLAGE
1.63516
1.47772
3.11288
5.09836
8.45269
1.62358
1.36333
2.98691
4.92931
8.20667
1.60492
1.88086
3.48578
5.50043
8.74387
1.62332
2.36918
3.99250
5.95021
9.17725
1.53290
2.42680
3.95970
6.33151
9.44721
1.40073
2.04586
3.44659
5.73046
8.61446
1.26082
1.36572
2.62654
4.86637
7.49019
1.42951
1.71049
3.14000
5.18017
7.54940
1.70401
1.69983
3.40384
5.73770
8.44954
1.86118
1.85585
3.71703
6.13638
8.96845
Statistical Section, 7-10
2011 Comprehensive Annual Financial Report
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
City of Renton, Washington
TABLE 9
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
100% 100% 100% 100% 100% 100% 100% 100%
1 9= 98
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
IdTOTALTAX Percent Collected
Sources:
1 Annual Tax Receivable Summary from King County
Z Annual Property Tax Reports from King County
COLLECTIONS Z
TOTAL TAX
COLLECTED WITHIN THE 1
FISCAL
LEVY FOR
FISCAL YEAR OF THE LEVY
YEAR
FISCAL YEAR
AMOUNT
% OF LEVY
2002
$ 18,581,814
$ 18,285,908
98.4%
2003
19,486,858
19,149,258
98.3%
2004
20,451,011
20,184,238
98.7%
2005
21,654,069
21,358,689
98.6%
2006
22,796,225
22,339,299
98.0%
2007
24,049,060
23,585,143
98.1%
2008
27,188,522
26,722,301
98.3%
2009
31,058,589
30,249,856
97.4%
2010
32,057,010
31,283,546
97.6%
2011
32,166,084
31,538,875
98.1%
Sources:
1 Annual Tax Receivable Summary from King County
Z Annual Property Tax Reports from King County
COLLECTIONS Z
TOTAL COLLECTIONS TO
IN SUBSEQUENT
DATE
YEARS
AMOUNT
% LEVY
$ 295,513 $
18,581,421
100.0%
337,535
19,486,793
100.0%
265,759
20,449,997
100.0%
290,839
21,649,528
100.0%
455,252
22,794,551
100.0%
461,267
24,046,410
100.0%
457,203
27,179,504
100.0%
719,328
30,969,184
99.7%
463,706
31,747,253
99.0%
N/A
31,538,875
98.1%
Statistical Section, 7-11
2011 Comprehensive Annual Financial Report
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
City of Renton, Washington
TABLE 10
SALES TAX COLLECTIONS BY SECTOR
LAST TEN FISCAL YEARS
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
0 Retail O Construction W Manufacturing 0 Transportation V Wholesale W Automotive U Services U Miscellaneous
RETAIL TRADE SECTOR
Furniture
Electronics and Appliances
General Merchandise
Misc Retail Trade
Others
Subtotal Retail
OTHER SECTORS
Construction
Manufacturing
Transportation
Wholesale
Automotive
Services
Miscellaneous
Subtotal - Other Sectors
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
$ 1,623,906 $ 1,758,082 $ 2,205,114 $ 1,203,942 $ 1,276,644 $ 1,245,901 $ 1,199,045 $ 1,065,605 $ 1,143,289 $ 1,186,244
Total Sales Tax $ 15,050,835 $ 16,007,404 $ 16,653,819 $ 17,108,455 $ 18,690,943 $ 20,342,195 $ 20,955,889 $ 17,995,840 $ 17,198,187 $ 17,729,735
Source : City of Renton Finance Division
In 2007 the Transportation category has been merged with Miscellaneous. Certain group codes have been shifted around to better reflect the category they truly represent. (The shift will not affect the total collected.)
Statistical Section, 7-12
1,065,416
1,130,621
1,143,188
1,137,586
1,036,569
1,086,334
988,355
673,164
788,699
1,013,876
1,073,144
1,100,217
1,169,225
1,462,858
1,573,716
1,646,351
1,652,442
681,148
763,596
862,919
848,834
928,083
658,429
756,662
625,320
558,709
594,226
1,622,166
1,667,483
1,651,782
2,227,721
2,464,896
1,378,094
1,574,482
1,538,600
1,563,101
1,649,231
4,600,384
4,977,860
5,733,691
6,419,057
6,900,461
5,594,837
6,130,633
5,839,810
5,997,784
6,070,498
1,899,005
2,122,560
2,641,907
2,495,684
2,688,902
3,898,202
4,725,533
2,991,530
2,218,377
1,576,127
547,333
754,501
556,555
569,269
797,166
983,110
1,050,789
950,113
777,452
1,073,075
621,314
563,863
628,918
494,866
567,401
-
-
-
-
-
1,451,387
1,442,263
1,416,559
1,025,132
1,016,468
1,083,059
1,131,445
915,885
941,315
1,148,660
3,549,973
3,625,878
3,538,502
3,946,163
4,303,221
4,176,747
3,575,928
3,215,641
3,035,251
3,179,418
1,835,039
1,953,254
1,677,315
1,736,569
2,039,090
4,103,240
3,939,201
3,616,076
3,694,342
3,960,151
546,400
567,225
460,372
421,715
378,233
503,000
402,360
466,785
533,667
721,805
10,450,451
11,029,544
10,920,128
10,689,398
11,790,482
14,747,358
14,825,256
12,156,029
11, 200,404
11,659,237
Total Sales Tax $ 15,050,835 $ 16,007,404 $ 16,653,819 $ 17,108,455 $ 18,690,943 $ 20,342,195 $ 20,955,889 $ 17,995,840 $ 17,198,187 $ 17,729,735
Source : City of Renton Finance Division
In 2007 the Transportation category has been merged with Miscellaneous. Certain group codes have been shifted around to better reflect the category they truly represent. (The shift will not affect the total collected.)
Statistical Section, 7-12
2011 Comprehensive Annual Financial Report
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
City of Renton, Washington
TABLE 11
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
* General Obligation (Governmental) 0 Other Long Term (Governmental)
* Revenue (Business -Type) O Other Long Term (Business -Type)
GOVERNMENTAL ACTIVITIES BUSINESS -TYPE ACTIVITIES
Source : City of Renton Finance Division
1The percentage of Personal Income column is based on personal income of King County. (See Table 16)
Statistical Section, 7-13
TOTAL
GENERAL
OTHER
OTHER
PRIMARY
PERCENTAGE
FISCAL
OBLIGATION
LONG TERM
REVENUE
LONG TERM
GOVERNMENT
OF PERSONAL
DEBT PER
YEAR
BONDS
DEBT
BONDS
DEBT
DEBT
INCOME
CAPITA
2002
$ 33,797,023
$
$ 31,230,000
$ 8,229,373
$ 73,256,396
7.86%
$ 1,361
2003
32,245,982
29,070,000
7,637,552
68,953,534
9.40%
1,256
2004
30,629,403
37,680,000
8,384,138
76,693,541
8.71%
1,385
2005
29,107,664
35,790,000
11,589,789
76,487,453
8.68%
1,346
2006
45,584,314
33,840,000
10,716,520
90,140,834
8.59%
1,545
2007
44,017,551
33,405,000
9,878,951
87,301,502
8.17%
1,448
2008
41,938,000
43,310,000
8,968,894
94,216,894
8.60%
1,196
2009
38,480,000
38,973,547
41,110,000
8,284,962
126,848,509
11.63%
1,516
2010
36,425,000
38,511,875
36,955,000
7,357,546
119,249,421
11.17%
1,383
2011
50,290,000
38,053,639
34,925,000
6,443,218
129,711,857
N/A
1,401
Source : City of Renton Finance Division
1The percentage of Personal Income column is based on personal income of King County. (See Table 16)
Statistical Section, 7-13
2011 Comprehensive Annual Financial Report
TABLE 12
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
City of Renton, Washington
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
LEGAL DEBT MARGIN CALCULATION FOR
Assessed Value
Add back: exempt real property
Total assessed value
Debt Limit
2.5% of general purpose limit, voted and
2.5% Utility purpose limit, voted
2.5% Open Space, Park and Capital
Total Debt Limit
Debt applicable to limit:
General Obligation Bonds
Other Long Term Debt
Total Debt
Less: Amount set aside for repayment of
general obligation debt and contracts
payable
Total net debt applicable to limit
Legal Debt Margin
Percentage of Net Debt to Debt Limit
Source : City of Renton Finance Division
$ 5,593,880,488 $ 5,983,832,546 $ 6,372,632,122 $ 6,697,771,907 $ 7,334,476,542 $ 8,370,801,505 $ 9,659,677,654 $ 13,233,244,780 $ 11,884,728,440 $ 11,480,466,361
17,212,168 20,256,008 17,643,328 27,368,066 30,552,056 33,038,511
5,593,880,488 5,983,832,546 6,372,632,122 6,697,771,907 7,351,688,710 8,391,057,513 9,677,320,982 13,260,612,846 11,915,280,496 11,513,504,872
139,847,012 149,595,814 159,315,803 167,444,298 183,792,218 209,776,438 241,933,025 331,515,321 297,882,012 287,837,622
139,847,012 149,595,814 159,315,803 167,444,298 183,792,218 209,776,438 241,933,025 331,515,321 297,882,012 287,837,622
139,847,012 149,595,814 159,315,803 167,444,298 183,792,218 209,776,438 241,933,025 331,515,321 297,882,012 287,837,622
419,541,037 448,787,441 477,947,409 502,332,893 551,376,653 629,329,313 725,799,074 994,545,963 893,646,037 863,512,865
33,797,023 32,245,982 30,629,403 29,107,664 45,584,314 44,017,551 41,938,000 38,480,000.00 36,425,000.00 50,290,000
- - - - - - - 38,973,547.00 38,511,875.18 38,053,639
33,797,023 32,245,982 30,629,403 29,107,664 45,584,314 44,017,551 41,938,000 77,453,547 74,936,875 88,343,639
(2,683,997) (3,068,586) (1,392,915) (1,270,936) (367,652) (1,009,555) (1,032,360)
32,258,799 28,173,327 28,137,539 26,423,667 42,515,728 42,624,636 40,667,064 77,085,895 73,927,320 87,311,279
$ 387,282,238 $ 420,614,114 $ 449,809,870 $ 475,909,226 $ 508,860,925 $ 586,704,677 $ 685,132,010 $ 917,460,068 $ 819,718,717 $ 776,201,586
7.69% 6.28% 5.89% 5.26% 7.71% 6.77% 5.60% 7.75% 8.27%
Statistical Section, 7-14
2011 Comprehensive Annual Financial Report
0.80%
0.70%
0.60%
0.50%
0.40%
0.30%
0.20%
0.10%
0.00%
TABLE 13
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
City of Renton, Washington
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-w*m—Percent of General Obligation Debt to Assessed Value
Source:
1 City of Renton Finance Division
Z King County Department of Assessments
Statistical Section, 7-15
LESS:
NET
% OF GO BOND
GENERAL1
AMOUNTSl
GENERAL
DEBTTO
FISCAL
OBLIGATION
AVAILABLE
OBLIGATION
ASSESSED 2,3
ASSESSED
PER
YEAR
BONDS
IN DEBT
BOND DEBT
VALUE
VALUE
CAPITA
2002
$ 33,797,023
$ 1,540,203
$ 32,256,820
$ 5,593,880,488
0.58%
$ 599
2003
32,245,982
1,879,654
30,366,328
5,983,832,546
0.51%
553
2004
30,629,403
1,440,509
29,188,894
6,372,632,122
0.46%
527
2005
29,107,664
2,683,999
26,423,665
6,697,771,907
0.39%
465
2006
45,584,314
3,068,587
42,515,727
7,334,476,542
0.58%
729
2007
44,017,551
1,392,915
42,624,636
8,370,801,505
0.51%
707
2008
41,938,000
1,270,936
40,667,064
9,659,677,654
0.42%
516
2009
38,480,000
367,652
38,112,348
13,233,244,780
0.29%
456
2010
36,425,000
1,009,555
35,415,445
11,884,728,440
0.30%
411
2011
50,290,000
1,032,360
49,257,640
11,480,466,361
0.43%
532
Source:
1 City of Renton Finance Division
Z King County Department of Assessments
Statistical Section, 7-15
2011 Comprehensive Annual Financial Report
Schools
69%
TABLE 14
DIRECTAND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
Port of Seattle
4%
GOVERNMENTAL UNIT
City of Renton Direct Debt
City of Renton Overlapping Debt 4
King County 3
Port of Seattle
Renton School District #403
Issaquah School District #411
Kent School District #41S
Fire District 20-1
Fire District 40-1
King County Library
City of Renton Overlapping Debt
Total Direct and Overlapping Debt
City of Renton, Washington
Renton
16%
:ou my
0%
DEBT
Estimated Percent
Estimated Share of
OUTSTANDING
Applicable
overlapping debt
$ 50,290,000
100%
$ 50,290,000
$ 924,690,136
3.47%
$ 32,086,748
336,120,000
3.47%
11,663,364
305,738,450
68.77%
210,256,332
278,300,100
2.52%
7,013,163
206,038,741
0.72%
1,488,218
-
2.91%
-
6,359,431
40.55%
2,578,584
123,116,633
1.50%
1,846,749
$ 266,933,158
$ 317,223,158
Sources:
1 King County Department of Executive Services
Z King County Department of Assessments
3 King County's debt excludes proprietary -type debt, public facilities district debt financed from special taxes and hotel/motel tax financed
debt
° 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.
Statistical Section, 7-16
2011 Comprehensive Annual Financial Report
WATER AND SEWER REVENUE BONDS:
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
City of Renton, Washington
TABLE 15
PLEDGED -REVENUE COVERAGE
LAST TEN FISCAL YEARS
Page 1 of 2
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
M Water and Sewer Net Revenue available for debt service o Debt Service OCoverage
4•
Revenue
Debt Service
Ratio
Expenses
Net Revenue
Fiscal
without
Available for
Year
Revenue
Depreciation
Debt Service
Principal
I
I ■
I ■
I ■
I ■
I ■
I ■
I
■
I
■
I
■
1,635,000
1,282,115
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
M Water and Sewer Net Revenue available for debt service o Debt Service OCoverage
Source: City of Renton Finance Division
'Bond financing requirements are that the average annual coverage is at least 1.3 times the average annual debt service for Water and
Sewer revenue bonds.
2Revenue includes connection charges, system development charges, latecomer fees, and interest revenue.
Statistical Section, 7-17
Revenue
Debt Service
Ratio
Expenses
Net Revenue
Fiscal
without
Available for
Year
Revenue
Depreciation
Debt Service
Principal
Interest
Coverage'
2002
24,045,660
17,495,472
6,550,188
1,805,000
928,303
2.40
2003
25,934,120
16,990,519
8,943,601
1,635,000
1,282,115
3.07
2004
27,301,230
18,325,863
8,975,367
1,475,000
1,010,268
3.61
2005
27,889,360
18,892,824
8,996,536
1,630,000
1,477,124
2.90
2006
27,750,508
18,850,225
8,900,283
1,680,000
1,430,199
2.86
2007
32,887,272
22,020,642
10,866,630
1,740,000
1,373,036
3.49
2008
32,152,413
23,766,437
8,385,976
1,810,000
1,803,687
3.01
2009
34,795,614
26,894,033
7,901,581
1,890,000
1,758,589
2.17
2010
35,790,870
28,183,489
7,607,381
1,955,000
1,689,455
2.09
2011
43,146,158
28,835,969
14,310,189
2,030,000
1,616,365
3.92
Source: City of Renton Finance Division
'Bond financing requirements are that the average annual coverage is at least 1.3 times the average annual debt service for Water and
Sewer revenue bonds.
2Revenue includes connection charges, system development charges, latecomer fees, and interest revenue.
Statistical Section, 7-17
2011 Comprehensive Annual Financial Report
GOLF COURSE REVENUE BONDS
2,500,000
2,000,000
1,500,000
1,000,000
500,000
Fiscal
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
- 1.98 1.67
1.38
TABLE 15
PLEDGED -REVENUE COVERAGE
LAST TEN FISCAL YEARS
Page 2 of 2
1.39
1.25 1.28
® 1.10 0.83
City of Renton, Washington
N/A N/A
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
0 Golf Course Net Revenue available for debt service 0 Debt Service p Coverage
Revenue Debt Service
Source: City of Renton Finance Division
Ratio
Interest
Expenses
Net Revenue
1.98
201,210
without
Available for
1.67
Revenue
Depreciation
Debt Service
Principal
2,279,361
1,415,674
863,687
225,000
2,177,122
1,573,296
603,826
235,000
2,198,597
1,460,445
738,152
250,000
2,208,335
1,657,294
551,041
260,000
2,337,672
1,725,854
611,818
270,000
2,333,955
1,770,684
563,271
285,000
2,310,869
1,827,810
483,059
295,000
2,163,737
1,798,831
364,906
310,000
2,106,614
1,684,423
422,191
2,200,000
2,020,230
1,763,341
256,889
-
Source: City of Renton Finance Division
Ratio
Interest
Coverage'
210,548
1.98
201,210
1.38
191,223
1.67
180,348
1.25
168,778
1.39
156,358
1.28
142,820
1.10
128,513
0.83
113,323
N/Az
-
N/A'
1The Golf System revenue bonds coverage requirement is at least 1.25 times that of respective calendar year's annual debt service.
2The Golf Course borrowed funds from the General Fund to call the outstanding 1999 Refunding Revenue Bond in order to receive a more
favorable interest rate (see Resolution No. 4070)
31999 Golf System Refunding Revenue Bonds were issued to refund the 1994 Golf System Revenue Bonds.
Statistical Section, 7-18
2011 Comprehensive Annual Financial Report
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
City of Renton, Washington
TABLE 16
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-King County Unemployment Rate
PER CAPITA
PERSONAL PERSONAL SCHOOL UNEMPLOYMENT
POPULATION 1 INCOME Z INCOME 3 ENROLLMENT 5 RATE 6
FISCAL
MEDIAN
YEAR
KING COUNTY
RENTON
KING COUNTY
2002
1,774,312
53,840
77,940,608,000
2003
1,779,300
54,900
79,199,166,000
2004
1,788,300
55,360
88,407,884,000
2005
1,808,300
56,840
89,032,307,000
2006
1,835,300
58,360
97,750,314,000
2007
1,861,300
60,290
106,805,239,000
2008
1,884,200
78,780
109,551,329,000
2009
1,909,300
83,650
109,053,408,000
2010
1,933,400
86,230
106,806,333,000
2011
1,942,600
92,590
N/A
Sources
IWashington State Office of Financial Management
2U.S. Bureau of Economic Analysis.
3U.S. Bureau of Economic Analysis.
4Washington State Office of Financial Management
5Renton Public Schools
6Washington State Employment Security Department
Statistical Section, 7-19
MEDIAN
KING COUNTY
AGE 4
CITY OF RENTON
KING COUNTY
44,217
36.13
12,892
6.2%
44,800
36.38
13,046
5.3%
49,670
36.60
13,062
4.8%
49,488
36.83
13,192
4.3%
53,488
36.93
13,397
4.0%
57,710
36.97
13,570
3.9%
58,141
37.00
13,836
6.1%
56,904
37.08
13,977
9.0%
55,136
37.24
14,232
8.6%
N/A
37.28
14,440
7.1%
Statistical Section, 7-19
2011 Comprehensive Annual Financial Report
City of Renton, Washington
Source: City of Renton Business license records and individual inquiries
CITY
34.44%
3.71
3.13
2.30
1.86
1.64
1.27
1.08
0.85
0.76
51.04%
Statistical Section, 7-20
TABLE 17
PRINCIPAL
EMPLOYERS
2011
2002
EMPLOYER
EMPLOYEES
RANK
CITY
EMPLOYEES
RANK
Boeing Company
12,528
1
27.93%
14,481
1
Valley Medical Center
2,033
2
4.53
1,562
2
Renton School District
1,837
3
4.10
1,318
3
Federal Aviation Administration
1,480
4
3.30
965
4
Paccarinc
1,077
5
2.40
782
5
Providence WA Regional
838
6
1.87
---
---
City of Renton
698
7
1.56
688
6
King County
516
8
1.15
---
---
Convergent Outsourcing Inc.
428
9
0.95
---
---
Puget Sound Educational Services District #121
364
10
0.81
---
---
Zones International
---
---
---
533
7
Wizards of the Coast
---
---
---
453
8
IKEA
---
---
---
358
9
Shuttle Express, Inc.
---
---
---
319
10
Total Principal Employers
21,799
48.61%
21,459
Total All other employers
23,049
51.39%
20,588
Total Employees working within Renton
44,848
100.00%
42,047
Source: City of Renton Business license records and individual inquiries
CITY
34.44%
3.71
3.13
2.30
1.86
1.64
1.27
1.08
0.85
0.76
51.04%
Statistical Section, 7-20
2011 Comprehensive Annual Financial Report
FUNCTION
General Government
Public Safety
Police
Commissioned Officers
Non -Commissioned Officers
Fire
Commissioned Officers
Non -Commissioned Officers
Public Works
Administration
Transportation Systems
Utility Systems
Maintenance Services
Culture and Recreation
Parks and Recreation
Library
Museum
Golf Course
Total
TABLE 18
FULL TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
City of Renton, Washington
2002
2003
2004
2005
2006
2007
20081
20092
20103
2011
97.5
96.5
97.5
94.5
89.5
95.0
155.6
163.8
143.3
143.5
88.0
88.0
89.0
91.0
97.0
122.0
124.0
121.0
123.0
123.0
40.2
40.2
41.2
43.2
42.2
49.2
51.2
46.4
44.4
28.4
105.0
105.0
106.0
106.0
106.0
109.0
118.0
137.0
136.0
145.0
12.0
12.0
13.0
13.0
14.0
16.0
17.0
18.0
16.0
16.0
42.7
42.7
42.7
42.5
46.5
49.0
4.0
3.5
3.0
3.0
34.0
33.0
34.5
34.5
35.5
40.5
41.0
37.0
33.0
33.0
20.8
20.8
20.8
20.8
24.8
29.3
36.7
37.7
29.5
29.5
61.0
62.0
62.0
62.0
64.1
71.0
88.0
83.0
78.0
78.0
77.5
77.5
77.5
76.5
76.5
81.0
89.5
86.3
81.8
82.8
14.0
14.0
14.0
13.0
13.0
14.0
14.0
15.0
-
-
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
9.5
9.5
9.5
603.7
602.7
609.2
608.0
620.0
687.0
750.0
759.2
698.5
692.7
Source: City of Renton Finance Division
1 I 2008, development services moved from public works to community and economic development
which is listed under general government.
2 I 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.
3Operations of the Renton libraries transferred to King County Library System (KCLS) in 2010 as a result of
voter -approved annexation
Statistical Section, 7-21
2011 Comprehensive Annual Financial Report
TABLE 19
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
City of Renton, Washington
IOperations of the Renton libraries transferred to King County Library System (KCLS) in 2010 as a result of voter -approved annexation.
Source: City of Renton departments
Statistical Section, 7-22
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
FUNCTION
Public Safety
Police
Physical arrests
3,813
3,735
4,280
4,590
2,489
2,925
3,580
3,748
3,464
2,810
Parking violations
4,776
2,742
3,733
3,575
3,520
5,995
5,117
6,795
4,748
1,094
Traffic violations
11,448
11,651
10,963
12,866
10,172
9,148
10,705
17,031
16,529
8,641
Fire
Number of calls answered
8,233
8,582
8,984
9,202
10,096
10,159
12,402
12,840
13,045
12,752
Inspections
2,261
2,681
2,539
3,438
3,505
3,197
2,772
2,968
2,620
2,300
Transportation
Street resurfacing (miles)
6.13
4.85
3.67
3.69
3.86
1.59
2.59
3.08
2.65
2.07
Solid Waste Utility
Recyclables collected (tons/yr)
5,119.8
4,389.0
4,920.3
4,934.2
4,843
5,004
5,395
9,653
9,836
12,565
Culture and Recreation
Athletic field attendence
126,534
137,811
156,707
155,000
155,000
91,053
93,000
93,000
93,000
93,000
Community Center admissions
162,970
172,911
172,537
177,761
177,761
162,476
155,000
150,000
150,000
150,000
Library
Volume in collections
155,463
158,676
165,406
190,011
193,965
188,359
194,497
187,454
N/A
N/A
Total volumes borrowed
456,982
499,792
512,059
491,470
464,333
491,397
554,223
620,981
N/A
N/A
Waterworks Utility
Metered connection
14,583
15,181
15,379
16,585
16,668
16,958
17,172
17,295
17,368
17,370
Average daily consumption
7,232
7,581
7,635
7,306
7,999
8,008
7,388
7,585
6,750
6,650
(thousands of gallons)
Peak daily consumption
12,477
14,080
14,248
13,025
15,271
14,750
12,739
14,814
12,826
12,476
(thousands of gallons)
IOperations of the Renton libraries transferred to King County Library System (KCLS) in 2010 as a result of voter -approved annexation.
Source: City of Renton departments
Statistical Section, 7-22
2011 Comprehensive Annual Financial Report
TABLE 20
CAPITAL ASSETS STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
City of Renton, Washington
1Includes Natural Area acreage, and developed/undeveloped park acreage for Neighborhood Parks, Community Parks, Regional Parks, Special Use Parks and
Corridors
2Developed 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
Source: City of Renton Departments
Statistical Section, 7-23
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
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 Units
7.0
7.0
7.0
7.0
7.0
7.0
10.0
10.0
10.0
10.0
Fire stations
5.0
5.0
5.0
5.0
5.0
5.0
6.0
6.0
6.0
7.0
Transportation
Street (miles)
213.2
213.7
213.7
218.0
224.6
233.7
263.8
263.8
264.5
266.1
Streetlights
2,492.0
2,612.0
2,704.0
2,790.0
2,924.0
3,137.0
3,367.0
3,505.0
3,935.0
4,015.0
Culture and recreation
Parks acreage
1,158.0
1,158.0
1,158.0
1,158.0
1,160.0
1,160.0
1,181.0
1,183.0
1,183.0
1205.81
Parks
26.0
26.0
26.0
26.0
26.0
28.0
29.0
30.0
30.0
32.02
Swimming pools
-
-
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 centers
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
Waterworks Utility
Water mains (miles)
289
291.0
291.1
293.0
295.0
300.0
304.0
305.0
305.0
305.0
Fire hydrants
3,193
3,240
3,274
3,374
3,440
3,544
3,602
3,624
3,651
3,639
Sanitary sewers (miles)
176.7
183.5
189.6
193.3
204.9
206.3
215.7
216.4
217.7
219.3
Storm sewers (miles)
199.4
204.0
209.7
214.8
219.7
222.3
267.5
273.8
274.9
276.1
1Includes Natural Area acreage, and developed/undeveloped park acreage for Neighborhood Parks, Community Parks, Regional Parks, Special Use Parks and
Corridors
2Developed 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
Source: City of Renton Departments
Statistical Section, 7-23
Y
RENTON�
AHEAD OF THE CURVE