Loading...
HomeMy WebLinkAboutQUARTER 2 2023Page 1 of 34   OVERVIEW  This quarterly financial report reflects the city’s revenue and expenditures/expenses for the fiscal year through June 30,  2023. A detailed analysis, including current to prior year and budget to actual comparison is included for each city fund.  Excluded from this report are the city’s fiduciary funds as these funds are held on behalf of others and are not available for  city use. Budget figures shown reflect amounts authorized in ORD 6114, which includes the year end budget adjustment  approved July 17th, 2023.     GENERAL FUND  The General Fund is used to account for resources that are not generally dedicated for a specific purpose. The General Fund  is used to meet the basic services that the city provides including, but not limited to, police protection, parks and  recreation, human services, municipal court, street maintenance and planning, economic development, and administrative  functions. The table below displays the YTD revenues and expenditures for the General Fund, including comparison to prior  year, comparison to YTD budget amounts, and percentage of annual budget. YTD budget amounts are generally based on  the collection/disbursement patterns for the same period of the preceding two (2) years, with the following exceptions:  property tax revenue budgets are based on the collection patterns over the preceding four (4) years and sales tax revenue  budgets are based on the collection patterns over the preceding five (5) years.               General Fund YTD Prior Year YTD YTD Budget % BUDGET REVENUES Taxes 50,349,747$      99,476,943$    49,069,181$      56,713,144$      6,363,397$        7,643,963$        57.01% Licenses & Permits 4,277,047            5,792,660          3,325,200            3,908,209            (368,838)$           583,009                67.47% Intergovernmental 2,375,706            9,199,969          4,419,901            2,489,903            114,197$             (1,929,998)          27.06% Charges  for Services 5,231,840            11,186,962       5,689,733            5,503,578            271,738$             (186,155)              49.20% Fines  and Penalties 2,397,604            3,841,442          2,039,048            1,971,551            (426,053)$           (67,497)                 51.32% Miscellaneous 1,377,526            1,673,835          819,690                 2,487,380            1,109,854$        1,667,690           148.60% Other  Financing Sources  (Transfer‐In, etc) 41,978                   1,976,216          1,976,216            39,635                    (2,343)$                 (1,936,581)          2.01% TOTAL  REVENUES 66,051,448         133,148,027    67,338,969         73,113,400         7,061,952           5,774,431           54.91% EXPENDITURES City Attorney 1,408,398            3,227,575          1,607,755            1,514,001            (105,603)              93,754                   46.91% Community and Economic  Development 5,218,831            15,062,857       8,137,153            6,122,616            (903,785)              2,014,537           40.65% Council 341,909                743,244               371,971                 369,213                 (27,304)                 2,758                      49.68% Court Services 1,533,653            3,532,292          1,749,477            1,579,095            (45,442)                 170,382                44.70% Equity, Housing, and Human Services 1,583,400            5,310,611          1,866,199            1,429,382            154,018                436,817                26.92% Executive  Services 2,837,610            6,504,746          3,299,930            2,988,080            (150,470)              311,850                45.94% Finance 1,950,843            5,363,865          2,300,308            2,139,566            (188,723)              160,742                39.89% Human Resources 795,121                1,942,172          954,553                 809,953                 (14,832)                 144,600                41.70% Parks  and Recreation 6,546,268            17,292,831       8,055,733            7,052,881            (506,613)              1,002,852           40.78% Police 21,235,380         49,793,835       24,020,111         24,165,966         (2,930,586)          (145,855)              48.53% Public Works 7,455,925            16,947,204       8,438,403            8,060,904            (604,979)              377,499                47.56% Other Non‐Departmental 8,026,297            12,844,723       2,648,185            1,465,387            6,560,910           1,182,798           11.41% TOTAL  EXPENDITURES 58,933,635         138,565,955    63,449,778         57,697,044         1,236,591           5,752,734           41.64% Change in Fund Balance 7,117,813            (5,417,928)         3,889,191            15,416,356         8,298,543           11,527,165        N/A Beginning Fund Balance 69,102,662         83,605,978       83,605,978         83,605,978         14,503,316         ‐                            100.00% ENDING FUND BALANCE 76,220,475$      78,188,050$    87,495,169$      99,022,334$      22,801,859$     11,527,165$     126.65% Operating Reserve  13,994,674         11,085,276       11,085,276         11,085,276          Economic Development Reserve 2,500,000            2,500,000          2,500,000            2,500,000             AVAILABLE FUND BALANCE 59,725,801$      64,602,774$    73,909,893$      85,437,058$       Favorable (Unfavorable) 2022 2023 Variance YTD Actual Annual Budget YTD Budget YTD Actual Summary of Sources and Uses Quarterly Financial Report 2nd Quarter 2023  Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 2 of 34   GENERAL FUND REVENUES  The following tables provide a more detailed summary of each revenue category within the General Fund. Detailed  explanations have been provided for variances from prior year or YTD budget in excess of $100K.  All variances are shown in  a favorable/(unfavorable) format.    TAXES     Property Tax – Property tax collections by King County are above prior year. The increase is due to the city increasing the  property tax levy the allowable 1% by state law as well as an additional levy of $1.5M.     Local Retail Sales Tax – Local retail sales tax exceeded prior year and YTD budget. The majority of the increase in local retail  sale tax revenues over the prior year is coming from the services and construction sectors.  It is important to note that sales  tax revenues have a two‐month lag between the time of the sale and the city’s receipt of the sale tax from the State.  Please  see the June sales tax report for information regarding sales tax figures by industry.    Criminal Justice Sales Tax – Criminal justice sales tax represents a 0.1% sales tax imposed by the county for criminal justice  purposes. The county must share 90% of the revenue collected with all cities and towns in the county on a per capita basis.  The increase in criminal justice sales tax directly relates to the increase in local retail sales tax, as described above.    Natural Gas Use Tax – Natural gas use tax represents a 6% tax on the usage of natural gas within the city that has not  otherwise been subject to city utility tax. The increase over 2023 budget and increase from prior year is due to higher than  anticipated usage which fluctuates from year to year and is only paid by a limited number of larger companies.     Admissions Tax – An increase in admission tax over prior year is due to the economic recovery from the pandemic where  many locations remained on limited capacity or were not operating their events in the first quarter of 2022 as well as a  large increase from a new taxpayer in Renton. Admissions tax is performing higher than budget due to the recent opening  of a large new taxpayer in Renton resulting in higher tax collection.      Utility Tax – Electrical, natural gas and city utilities are the primary drivers of the increase over prior year and amount  above YTD budget due to increased customer rates coupled with increased utility usage. Rates for utility users beginning  January 2023 increased 8.7% for electricity and 6.4% for natural gas. These increases were partially offset by decreases in  cable utility tax due to decreased customer base as well as timing of tax payments for the month of June which were not  received until July. The breakdown of utility tax is as follows:  2022 2023 2023 Actual Budget Actual $ % $ % Property Tax 12,394,088         13,282,552          13,303,522         909,434              7.3% 20,970                 0.2% Local Retail  Sales  Tax 17,963,563         16,230,093          18,242,536         278,973              1.6% 2,012,443         12.4% State Sales  Tax  Credit 77,005                    104,621                 56,793                    (20,212)                ‐26.2% (47,828)                ‐45.7% Criminal Justice Sales  Tax 1,801,308            1,473,357             1,904,016            102,708              5.7% 430,659              29.2% Natural Gas Use  Tax 120,306                 110,818                 253,629                 133,323              110.8% 142,811              128.9% Admission  Tax 52,013                    111,308                 634,789                 582,776              1120.4% 523,481              470.3% Utility Tax 8,979,648            8,326,919             9,508,889            529,241              5.9% 1,181,970         14.2% Leasehold Excise  Tax 89,299                    91,678                    102,376                 13,077                 14.6% 10,698                 11.7% Gambling Excise  Tax 1,745,503            1,199,307             1,716,042            (29,461)                ‐1.7%516,735              43.1% B&O Tax 7,127,014            8,138,528             10,990,552         3,863,538         54.2% 2,852,024         35.0% YTD  Total 50,349,747$      49,069,181$       56,713,144$      6,363,397$      12.6% 7,643,963$      15.6% Annual  Total 102,213,407$   99,476,943$        Taxes  by Type Revenue 2023 vs. 2022 2023 vs. Budget Year to Date through June Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 3 of 34       Gambling Excise Tax – Gambling excise tax can fluctuate based on the economy; therefore, budget is established based on  a historical average from prior years. Current year revenue is above budget due to substantial increases from the card  games tax.      Business and Occupation (B&O) Tax – B&O tax revenues are above the 2023 budget and increased from prior year due to  the increase in the tax cap in 2023 as well as increased rates which were in effect for reporting periods beginning after  January 1, 2023.     LICENSES & PERMITS      Business Licenses – The amount over the 2023 year‐to‐date budget is due to higher than anticipated collections during  January and February. The majority of the business license revenue is collected during the months of December through  March of each year near the renewal due date.    Building Permits – Building permits are collected upon permit issuance. Building permit revenue is exceeding budget  primarily due to a few larger projects such as the new Sounders facility and the Wizards of the Coast tenant improvements  at the Southport Campus. The decrease from prior year is primarily due to the Solera project in 2022 which was significantly  larger than any permit fees paid in 2023.    INTERGOVERNMENTAL            2022 2023 2023 Tax  by Type YTD Actual YTD  Budget YTD Actual $ % $ % Electrical 3,181,543$     2,861,452$         3,537,519$                355,976$                    11.2% $      676,067 23.6% Natural  Gas 1,200,512        1,047,955            1,422,338                   221,826                       18.5%          374,383 35.7% Cell 258,600            234,200                 244,776                       (13,824)                          ‐5.4%             10,576 4.5% Phone 340,445            309,957                 312,143                       (28,302)                          ‐8.3%                2,186 0.7% Cable 772,144            781,932                 547,294                       (224,850)                       ‐29.1%        (234,638)‐30.0% Garbage 378,475            402,730                 414,309                       35,834                          9.5%             11,579 2.9% City Utilities 2,847,929        2,688,693            3,030,510                   182,581                       6.4%          341,817 12.7% YTD  Total 8,979,648$     8,326,919$         9,508,889$                529,241$                    5.9%1,181,970$  14.2% 2023 vs. 2022 2023 vs. Budget 2022 2023 2023 Actual Budget Actual $ % $ % Franchise  Fees 707,093                 810,986                 732,362                 25,269                 3.6%(78,623)                ‐9.7% Business Licenses 832,940                 690,437                 866,217                 33,277                 4.0% 175,780              25.5% Animal  Licenses 32,570                    33,498                    32,700                    130                        0.4%(798)                        ‐2.4% Building Permits 2,678,011            1,759,613             2,253,205            (424,806)             ‐15.9%493,592              28.1% ROW/Street Excavation  Permits 25,924                    30,278                    23,385                    (2,539)                   ‐9.8% (6,893)                   ‐22.8% Special  Event  Permits 510                           389                            340                           (170)                        ‐33.3% (49)                           ‐12.6% YTD  Total 4,277,047$         3,325,200$          3,908,209$         (368,838)$          ‐8.6%583,009$           17.5% Annual  Total 7,455,983$         5,792,660$           Year to Date through June Revenue 2023 vs. 2022 2023 vs. Budget Licenses & Permits by Type 2022 2023 2023 Actual Budget Actual $ % $ % State Shared Revenue 2,007,769            2,033,707$          2,011,740            3,971$                 0.2%(21,967)$             ‐1.1% Federal Grants 324,049                 2,102,626             335,925                 11,876                 3.7%(1,766,701)         ‐84.0% State Grants 13,811                    147,045                 94,762                    80,951                 586.1%(52,283)                ‐35.6% Local Grants 30,077                    136,523                 47,476                    17,399                 57.8%(89,047)                ‐65.2% YTD  Total 2,375,706$         4,419,901$          2,489,903$         114,197$           4.8%(1,929,998)$      ‐43.7% Annual  Total 17,604,837$      9,199,969$           Intergovernmental by Type Revenue 2023 vs. 2022 2023 vs. Budget Year to Date through June Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 4 of 34   State Shared Revenue – The breakdown of state shared revenue is as follows:        Fuel Tax – The amount under budget is due to a lower than anticipated state share in 2023 which is distributed based on a  per capita basis. Budget will be monitored as it is anticipated a decrease in fuel tax shared revenue due to an increasing  number of electric vehicles in the market.     Federal/State/Local Grants – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is  budgeted at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires. The variance from year‐to‐date  budget is largely due to remaining ARPA grant funds that are unspent through June 2023.    CHARGES FOR SERVICES       Public Safety Services – The decrease in public safety services from prior year and budget is primarily due to a decrease in  police school resource officers. Only one of three officers are currently being utilized due to Renton School District slowly  restarting this program after a pause during the pandemic. Private security revenue has also contributed to the decrease  due to staffing shortfalls and the need to cover minimum staffing of city operations before contracting officers for private  security opportunities. Private security service revenue is intended to offset the overtime expenditures incurred and is a net  zero impact to the city.      Development Services ‐ The decrease from prior year is primarily due to large inspection revenues received in 2022 for  Philip Arnold Park, and King County Shop building permits. The amount over the budget in 2023 is due to construction  activity remaining strong including one large project for Lindbergh High School modernization development engineering.    Recreation/Farmer’s Market/Events – The increase over prior year and budget is largely due to a significant amount of the  recreation facilities being closed through April of 2022. Decreased revenue in prior years impacts the budget since YTD  revenues are calculated using the two prior year’s average collections. Multiple fees were also increased in 2023 for  2022 2023 2023 Tax by Type YTD  Actual YTD  Budget YTD Actual$%$% Judicial Contribution 21,552$         25,007$         22,478$         926$               4.3%(2,529)$          ‐10.1% Crim Just ‐ Pop 17,838            11,966            18,803            965                  5.4% 6,837              57.1% Crim Just ‐ Spec Prog 63,399            54,959            66,519            3,120              4.9% 11,560           21.0% Crim Just ‐ One  Time ‐                            ‐                           44,715            44,715           N/A 44,715           100.0% State  DUI 8,957               10,526            263                    (8,694)             ‐97.1% (10,263)          ‐97.5% Marijuana  Distribution 130,431         98,361            136,737         6,306              4.8% 38,376           39.0% Liquor Profits 415,517         400,040         410,938         (4,579)             ‐1.1%10,898           2.7% Liquor Excise  Tax 380,992         380,812         376,777         (4,215)             ‐1.1% (4,035)             ‐1.1% Fuel  Tax 969,083         1,052,036     934,510         (34,573)          ‐3.6% (117,526)       ‐11.2% YTD  Total 2,007,769$  2,033,707$  2,011,740$  3,971$           0.2%(21,967)$      ‐1.1% 2023 vs. 2022 2023 vs. Budget 2022 2023 2023 Actual Budget Actual $ % $ % Passport Fees 4,970                       7,151                       4,410                       (560)                        ‐11.3% (2,741)                   ‐38.3% Court Services 45,408                    7,609                       67,019                    21,612                 47.6% 59,411                 780.8% General Government Services 184                            ‐                                   53                              (130)                        ‐70.9%53                           100.0% Public Safety Services 457,097                 618,142                 278,970                 (178,127)             ‐39.0% (339,172)             ‐54.9% Development Services 1,806,686            1,159,875             1,330,880            (475,806)             ‐26.3%171,005              14.7% Transportation Services 3,413                        ‐                                   23,578                    20,165                 590.9% 23,578                 100.0% Social  Services 106,235                 149,427                 78,508                    (27,727)                ‐26.1% (70,919)                ‐47.5% Recreation/Farmer's  Market/Events 271,952                 258,423                 635,711                 363,760              133.8% 377,288              146.0% Interfund Services 2,535,896            3,489,106             3,084,449            548,553              21.6%(404,657)             ‐11.6% YTD  Total 5,231,840$         5,689,733$          5,503,578$         271,740$           5.2%(186,154)$          ‐3.3% Annual  Total 10,101,988$      11,186,962$        Year to Date through June Charges for Services  by Type Revenue 2023 vs. 2022 2023 vs. Budget Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 5 of 34   recreation services which is contributing to the increase from prior year. The amount over budget is due to the 2022 Seek  Grant of $129K used to support the STREAM team summer camp. Additionally, community center programs are performing  $140K above year‐to‐date budgeted amounts. As we move through the summer months, these figures should be more  consistent with prior year and budget.      Interfund Services – Interfund services revenue increased from prior year due to the newly created sustainability division,  which is charged out to utility funds, and cost of living salary increases, which are charged to other departments. The  amount under the 2023 year‐to‐date budget is due to a reduction of soft capital transfers for general fund personnel  related to capital projects.      FINES AND PENALTIES      Photo Enforcement Program – The decrease from prior year is primarily due to a large uptick in revenue in 2022 resulting  from the city’s new collection agency sending out collection notices that caused a surge of payments. Collections through  the first 6 months of 2023 are down 3.5% from prior year.     MISCELLANEOUS REVENUES      Interest and Other Investment Earnings – Investment earnings have varied over the past couple of years as the market has  seen uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds  rate, and we may continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government  Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or  increases; the city holds roughly 52% of the total cash and investments for the city in the LGIP.     Rents, Leases, and Concessions – The increase from prior year is due to higher‐than‐expected parking garage fees ($47K),  and senior center and community center facility rentals ($53K) as these remained in limited usage in the beginning of 2022.    The amount over the budget is primarily due to parking garage fees ($100K), 200 Mill leases ($125K), community center  facility rentals ($60K) and a revocable land use permit ($50K).    Other – The decrease from prior year is due a payment applied to other and miscellaneous revenue which was moved to  charges for services ($290K) for a payment in lieu of affordable housing units.          2022 2023 2023 Actual Budget Actual $ % $ % Civil Penalties 156,442$              164,431$              120,740$              (35,702)$             ‐22.8% (43,692)$             ‐26.6% Photo Enforcement  Program 2,106,246            1,762,817             1,753,578            (352,668)             ‐16.7% (9,239)                   ‐0.5% Criminal Traffic  Misdemeanor Fines 16,908                    23,786                    12,468                    (4,440)                   ‐26.3% (11,318)                ‐47.6% Criminal Non‐Traffic  Fines 2,660                       3,890                       1,985                       (675)                        ‐25.4% (1,906)                   ‐49.0% Criminal Costs 16,726                    22,657                    12,638                    (4,088)                   ‐24.4% (10,019)                ‐44.2% Non‐Court Fines, Forfeitures and Penalties 98,622                    61,466                    70,142                    (28,480)                ‐28.9%8,677                    14.1% YTD  Total 2,397,604$         2,039,048$          1,971,551$         (426,053)$          ‐17.8% (67,497)$             ‐3.3% Annual  Total 4,142,205$         3,841,442$           Year to Date through June Revenue 2023 vs. 2022 2023 vs. Budget Fines  and Penalties by Type 2022 2023 2023 Actual Budget Actual $ % $ % Interest and Other Investment Earnings 190,536$              81,575$                 1,401,573$         1,211,037$      635.6% 1,319,998$      1618.1% Rents, Leases, and Concessions 794,199                 605,274                 927,923                 133,724              16.8% 322,649              53.3% Contributions/Donations from Private Source s 12,035                    8,574                       20,553                    8,518                    70.8% 11,979                 139.7% Other 380,756                 124,267                 137,331                 (243,425)             ‐63.9%13,064                 10.5% YTD  Total 1,377,526$         819,690$              2,487,380$         1,109,854$      80.6% 1,667,690$      203.5% Annual  Total 2,914,453$         1,673,835$           Year to Date through June Revenue 2023 vs. 2022 2023 vs. Budget Miscellaneous by Type Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 6 of 34   OTHER FINANCING SOURCES      Transfers from Other Funds – The amount under budget is due to the timing of budgeted transfers. Annual transfers occur  in December each year.         GENERAL FUND EXPENDITURES    The following tables summarize expenditures by category for each department within the General Fund.         Personnel – Personnel costs are budgeted at 100% of the position cost each year resulting in a budget variance if positions  remain open for any part of the year. The increase in personnel costs over prior year is due to filling positions that were  previously held vacant in 2022, and cost of living adjustments. Personnel costs under budget is due to open positions; there  are currently 66 vacancies as of June 30th.    Supplies – The increase in supplies from prior year is primarily due to the following:    Signal shop supplies for damaged, repair and replacement of traffic signals and street markings ($141K); purchase  of street marking paint sufficient to paint all roadway markings within the city to replace raised pavement  markings; one large signal purchase in 2023 to upgrade the 154th and SR169 intersection with vehicle detection  signals to assist with traffic congestion;   Increased need for small tools and minor equipment for parks maintenance due to delayed maintenance from  pandemic ($30K);   Police SWAT supplies, opioid overdose supply kits, small drone purchases, new radar purchases, quarter master  system supplies for new officers, and donation of Kia and Hyundai wheel lock systems; a revenue and expenditure  are recognized for the donation and subsequent pass through to the public ($135K).    The amount over the year‐to‐date budget is due to the following:   Increased need for small tools and minor equipment for parks maintenance due to delayed maintenance from  pandemic ($30K);   Unbudgeted chemical expenditures for the Henry Moses Aquatic Center previously expensed through facilities  ($18K);   One‐time purchases of police radar systems, quarter master system supplies related to increased recruitment, new  technology service for police investigations, and Kia and Hyundai wheel lock donations not previously budgeted  ($110K);  2022 2023 2023 Actual Budget Actual $ % $ % Transfers  from Other Funds 14,187$                 1,930,000$           ‐$                                (14,187)               0.0%(1,930,000)        0.0% Interfund Loan Payment Received 15,405                    46,216                    22,212                    6,807                    44.2%(24,004)                ‐51.9% Insurance Recoveries 10,386                     ‐                                   17,423                    7,037                    67.8% 17,423                 100.0% Sale  of Capital Assets 2,000                        ‐                                    ‐                                   (2,000)                  0.0%‐                                N/A YTD  Total 41,978$                 1,976,216$          39,635$                 (2,343)$                ‐5.6% (1,936,581)$      ‐98.0% Annual  Total (80,254)$               1,976,216$           Year to Date through June Other Financing Sources  by Type Revenue 2023 vs. 2022 2023 vs. Budget General Fund Summary of Uses 2022 Year to Date through June YTD Actual YTD Budget YTD Actual $%$% Personnel 32,190,990$     39,918,315$          35,961,286$       (3,770,296)$       ‐11.7% 3,957,029$         9.9% Supplies 796,600                732,612                    1,141,184             (344,584)               ‐43.3%(408,572)               ‐55.8% Contracted Services 9,673,760           12,361,529             10,213,027          (539,267)               ‐5.6% 2,148,502            17.4% Capital Outlay 14,258                   176,415                    120,634                  (106,376)               ‐746.1% 55,781                    31.6% Debt Service 225,309                 ‐                                 ‐                              225,309                100.0%‐                             0.0% Internal Services 10,251,145        10,245,368             10,245,374          5,771                      0.1% (7)                                0.0% Transfers  Out 5,781,573           15,539                       15,539                     5,766,034            99.7%‐                             0.0% Total  Expenditures 58,933,635        63,449,778             57,697,044          1,236,591            2.1% 5,752,734            9.1% Annual Total 130,113,119     138,565,953           2023 2023 vs. 2022 2023 vs. Budget Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 7 of 34    Higher than anticipated street maintenance costs including increased cost for asphalt for repairs ($146K);   Change in coding of signal shop supply purchases resulting from reorganization in 2021 that impacted the two‐year  average calculation ($94K). The annual supply budget is currently 64% spent which is trending slightly above the  50% anticipated through June, largely due to traffic markings supplies of which the annual budget has been spent  in full. This overspend was partially offset by budget savings for transportation systems where these expenditures  were previously budgeted.    Contracted Services ‐ The increase in contracted services over prior year is due to the following:    Increased expenditures for photo enforcement due to CPI increase from vendor ($45K);   Police SWAT professional services and Valley SWAT participation expenditures ($53K) ;   Increase in jail services due to timing of billing; in 2022 only two months were paid through Q1 and in 2023 three  months were paid ($225K);   Increase in Valley Communications (911 call center) costs of approximately $127K due to a contractual increase in  the city’s share of costs;   Planning expenditures related to the middle housing grant that occurred in 2023 ($50K);   Increased police training and travel expenditures due to increased recruitment into the regional training center  ($37K);   Organizational development increase in training and professional services as this position was vacant until July  2022 ($55K);   Increase in State Auditor expenditures due to delayed timing of the 2021 audit which went through January of  2023 ($62K);   Increased tree maintenance and arborist costs ($46K);   One‐time payments for land acquisition appraisal services ($12K);   Increase in electricity usage and rates for transportation systems ($71K);   Sustainability division grant spending for water conservation and climate planning grants ($144K).  These increases were offset by the following decreases from prior year:   Decrease in Human Services spending due to one time funding in 2022 through CDBG grant ($217K);   Decrease in signal shop professional services due to significant property repair expenditures in 2022 ($84K);   Decrease in election costs due to timing of billing; in 2023 we have paid for voter registration costs to date  ($154K).    The amount under budget is primarily driven by the following:   Jail services ($189K) due to contractual increase and invoice timing in prior years being paid later in the year;   Human Services of $227K allocated for housing repair currently unspent;   Economic development contracted services of $1.1M and professional services of $826K currently unspent  including Downtown Partnership, Shop Local program, and grant funds; these amounts are anticipated to be spent  throughout the remainder of the year;   Election costs for primary election have not been paid in 2023 and have historically been paid in June ($154K);   Annual reserve budget of $1.8M of which $935K is budgeted year‐to‐date.  These budget savings were partially offset by the following:   Increase in police training for academy expenditures as the city has priority after providing an officer to the  regional training center ($37K);   Increased electronic home detention expenditures due to a higher volume of GPS equipment being utilized ($32K).    Capital Outlay – The increase from prior year is due to a technology purchase with EMPG grant ($18K), Police drone  purchase ($39K), signal shop purchase of a plotter printer and radar system ($30K), and parks purchase of storage and  equipment ($13K).    Debt Service – The decrease from prior year is due to the issuance of an interfund loan from the general fund to the  Maplewood golf course to fund the purchase of golf carts in 2022, a one‐time activity.  Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 8 of 34   DEBT SERVICE FUNDS  Debt service funds are used to account for the accumulation of resources for the payment of principal and interest related  to the City’s general obligation bond issues. YTD budgets are not prepared for debt service funds.     GENERAL GOVERNMENTAL MISCELLANEOUS DEBT FUND  The General Governmental Miscellaneous Debt Fund is the only debt service fund maintained by the city.        Principal and Transfers In – The increase from prior year is due to a one‐time payment in 2023 for payoff of the Fire District  40 debt. This debt was paid off early as the fire impact mitigation fund held sufficient resources to pay the debt in full.                                          2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants  / intergovernmental 44,705$                39,170$                  38,320$         (6,385)$         (850)$              97.83% Investment Earnings 11,440                    ‐                                71,645           60,205          71,645            N/A TOTAL  REVENUES 56,145                   39,170                    109,965         53,820          70,795            280.74% EXPENDITURES: Principal 195,873                4,453,189               2,533,189      (2,337,316)   1,920,000       56.88% Interest 635,337                1,112,501               582,994         52,343          529,507          52.40% TOTAL  EXPENDITURES 831,210                5,565,690               3,116,183      (2,284,973)   2,449,507       55.99% Transfers  In 611,550                5,715,852               2,595,376      1,983,826    (3,120,476)     45.41% NET TRANSFERS 611,550                5,715,852               2,595,376      1,983,826    (3,120,476)     45.41% CHANGE IN  FUND BALANCE (163,515)               189,332                  (410,842)        (247,327)      (600,174)          ‐217.00% BEGINNING FUND BALANCE, Jan 1 5,218,125             5,262,665               5,262,665      44,540           ‐                        100.00% ENDING FUND BALANCE, Jun 30 5,054,610$           5,451,997$            4,851,823$   (202,787)$    (600,174)$      88.99% Debt Service Reserve 2,717,575             2,717,575               2,717,575       AVAILABLE FUND BALANCE 2,337,035$           2,734,422$            2,134,248$    VARIANCE FAVORABLE (UNFAVORABLE) GENERAL  GOVERNMENTAL  MISCELLANEOUS DEBT Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 9 of 34   SPECIAL REVENUE FUNDS  Special revenue funds are used to account for revenues that are to be used for a specific purpose as required by law or  legislative action. YTD budgets are not prepared for special revenue funds. Detailed explanations will be provided for  material differences between prior year and or budgeted amounts.      Hotel/Motel Fund  The Hotel/Motel Fund accounts for monies collected through an increase of 1% in hotel/motel taxes for the purpose of  increasing tourism in the City of Renton, as authorized under RCW 67.28.180. The Lodging Tax Advisory Committee (LTAC)  solicits applications for awards and brings their recommendations to Council for approval at least once per year. Awards for  events are paid to applicants at the conclusion of the event once certain reporting requirements have been met.          Taxes – The amount over the annual budget is due to better‐than‐expected economic recovery for lodging taxes. The  budget will be monitored and adjusted as necessary in the mid biennium budget adjustment.     Contracted Services – The contracted services budget is expended as programs hold their events for which they were  awarded funds for. The majority of the LTAC award events occur during summer.                                        2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 195,700$              200,000$                217,060$              21,360$                17,060$                108.53% Contributions 10,000                    ‐                                 ‐                              (10,000)                  ‐                              N/A Investment Earnings 1,691                      ‐                                11,200                   9,509                     11,200                   N/A TOTAL  REVENUES 207,391                200,000                   228,260                20,869                   28,260                   114.13% EXPENDITURES: Contracted Services 127,729                424,616                   74,041                   53,688                   350,575                17.44% TOTAL  EXPENDITURES 127,729                424,616                   74,041                   53,688                   350,575                17.44% Transfers  Out ‐                              (30,000)                     ‐                               ‐                               ‐                              N/A NET TRANSFERS ‐                              (30,000)                     ‐                               ‐                               ‐                              N/A CHANGE IN  FUND BALANCE 79,662                   (254,616)                 154,219                74,557                   408,835                 ‐60.57% BEGINNING FUND BALANCE, Jan 1 728,421                712,384                   712,384                (16,037)                  ‐                              97.80% ENDING FUND BALANCE, Jun 30 808,083$              457,768$                866,603$              58,520$                408,835$              107.24% VARIANCE FAVORABLE (UNFAVORABLE) HOTEL/MOTEL Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 10 of 34   Cable Communications Fund  The Cable Communications Fund accounts for funding for promotion and development of cable communications as  established by city ordinance. The main use of the fund is to support the broadcasting of City Council meetings on Channel  21.        Housing & Supportive Services  In accordance with HB 1590, the City Council passed ORD 5983 authorizing an additional 0.1% sales and use tax, effective  January 1, 2021. The additional sales and use tax is restricted for housing and related services, in accordance with RCW  82.14.530.       Taxes – Taxes have exceeded prior year and are currently on track to exceed the annual budget. This tax revenue will  increase or decrease with the economy as it is a direct sales tax upon consumer purchases.    Contracted Services – The decrease from prior year is due to a large payment made to the Renton Housing Authority to  develop affordable housing as part of the Sunset Gardens project.      2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses  and permits 32,673$                57,674$                    27,949$                (4,724)$                 (29,725)$               48.46% Investment Earnings 1,536                      ‐                                  6,331                     4,795                     6,331                     N/A TOTAL  REVENUES 34,209                   57,674                      34,280                   71                           (23,394)                 59.44% EXPENDITURES: Supplies 119,436                26,084                      21,238                   (98,198)                 4,846                     81.42% Contracted Services 35,004                   155,502                    62,023                   27,019                   93,479                   39.89% Capital  Outlay ‐                              74,000                       ‐                               ‐                              74,000                   0.00% TOTAL  EXPENDITURES 154,440                255,586                    83,261                   (71,179)                 172,325                32.58% Transfers  In ‐                               ‐                                   ‐                               ‐                               ‐                              N/A NET TRANSFERS ‐                               ‐                                   ‐                               ‐                               ‐                              N/A CHANGE IN  FUND BALANCE (120,231)               (197,912)                   (48,981)                 71,250                   148,931                N/A BEGINNING FUND BALANCE, Jan 1 731,245                453,147                    453,147                (278,098)                ‐                              100.00% ENDING FUND BALANCE, Jun 30 611,014$              255,235$                  404,166$              (206,848)$             148,931$              158.35% CABLE COMMUNICATIONS VARIANCE FAVORABLE (UNFAVORABLE) 2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 2,086,418$           3,500,000$              2,142,926$           56,508$                (1,357,074)$         61.23% Investment Earnings 7,641                      ‐                                  99,320                   91,679                   99,320                   N/A TOTAL  REVENUES 2,094,059             3,500,000                 2,242,246             148,187                (1,257,754)            64.06% EXPENDITURES: Contracted Services 1,500,000             260,000                    15,000                   (1,485,000)            245,000                5.77% TOTAL  EXPENDITURES 1,500,000             260,000                    15,000                   (1,485,000)            245,000                5.77% Transfers  In ‐                               ‐                                   ‐                               ‐                               ‐                              N/A Transfers  Out ‐                               ‐                                   ‐                               ‐                               ‐                              N/A NET TRANSFERS ‐                               ‐                                   ‐                               ‐                               ‐                              N/A CHANGE IN  FUND BALANCE 594,059                3,240,000                 2,227,246             1,633,187             (1,012,754)            68.74% BEGINNING FUND BALANCE, Jan 1 3,171,729             6,110,390                 6,110,390             2,938,661              ‐                              100.00% ENDING FUND BALANCE, Jun 30 3,765,788$           9,350,390$              8,337,636$           4,571,848$           (1,012,754)$         89.17% HOUSING & SUPPORTIVE SERVICES VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 11 of 34   Springbrook Wetlands Fund  The Springbrook Wetlands Fund was established in 2007 for the purpose of providing accounting for the Springbrook Creek  Wetland and Habitat Mitigation Bank project. The proceeds of selling wetlands credits will be used to fund the ongoing  maintenance of the wetland in perpetuity.      Sale of Credits – The amount over budget is due to a sale of wetland mitigation bank credits to the Seattle Sounders FC for  their new development within the city. A budget adjustment will be made in the next budget adjustment.    Police Seizure Fund  The Police Seizure Fund was established in the 2nd quarter of 2020 for the purpose of providing transparency in the  accounting for assets seized by Police in accordance with RCW 9A.83.030 and 69.50.505, previously accounted for within  the General Fund. These seizure funds are restricted to use exclusively for the expansion and improvement of controlled  substances related law enforcement activity.  The total fund balance remaining at the end of the year is budgeted in full the  following year.        Supplies and Contracted Services – The decrease from prior year is primarily due to SWAT eligible purchases made in 2022.  SWAT expenditures are primarily in the general fund.    2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants  / intergovernmental ‐$                             ‐$                               4,011$                   4,011$                   4,011$                   N/A Investment Earnings 633                         ‐                            7,015                     6,382                     7,015                     N/A Sale of credits 230,300                 ‐                                 247,852                17,552                   247,852                N/A TOTAL  REVENUES 230,933                 ‐                                 258,878                27,945                   258,878                N/A EXPENDITURES: Personnel 2,853                      ‐                                 6,142                     (3,289)                    (6,142)                    N/A Contracted Services 389                        40,000                      4,132                     (3,743)                    35,868                   10.33% TOTAL  EXPENDITURES 3,241                     40,000                      10,273                   (7,032)                    29,727                   25.68% NET TRANSFERS ‐                               ‐                                  ‐                               ‐                               ‐                              N/A CHANGE IN  FUND BALANCE 227,692                (40,000)                    248,605                20,913                   288,605                N/A BEGINNING FUND BALANCE, Jan 1 234,325                454,628                   454,628                220,303                 ‐                              100.00% ENDING FUND BALANCE, Jun 30 462,017$              414,628$                 703,233$              241,216$              288,605$              169.61% SPRINGBROOK WETLANDS VARIANCE FAVORABLE (UNFAVORABLE) 2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Contributions 31,007$                 ‐$                               106,159$              75,153$                106,159$              N/A Investment Earnings 1,085                      ‐                                 5,117                     4,032                     5,117                     N/A TOTAL  REVENUES 32,092                    ‐                                 111,276                79,185                   111,276                N/A EXPENDITURES: Supplies 41,304                   339,814                   2,986                     (38,318)                 336,828                0.88% Contracted Services 91,045                    ‐                                 20,625                   (70,420)                 (20,625)                 N/A Capital  Outlay 150,104                 ‐                                  ‐                              (150,104)                ‐                              N/A TOTAL  EXPENDITURES 282,453                339,814                   23,611                   (258,842)               316,203                6.95% Transfers  Out ‐                               ‐                                  ‐                               ‐                               ‐                              N/A NET TRANSFERS ‐                               ‐                                  ‐                               ‐                               ‐                              N/A CHANGE IN  FUND BALANCE (250,361)               (339,814)                  87,665                   338,027                427,479                N/A BEGINNING FUND BALANCE, Jan 1 631,525                339,814                   339,814                (291,711)                ‐                              100.00% ENDING FUND BALANCE, Jun 30 381,164$               ‐$                               427,479$              46,315$                427,479$              N/A POLICE SEIZURE VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 12 of 34   Capital Outlay – The decrease in capital outlay from prior year is due to several large capital purchases in 2022 including a  3D mapping system and a CCTV trailer.     Police CSAM Seizure Fund  The Police CSAM Seizure Fund was established in the 2nd quarter of 2020 for the purpose of providing transparency in the  accounting for assets seized by Police in accordance with RCW 9A.88.150, previously accounted for within the General  Fund. These seizure funds are restricted to the exclusive use of enforcing the provisions of chapter 9A.88 RCW, Indecent  Exposure‐Prostitution, or chapter 9.68A RCW, Sexual Exploitation of Children.        Fire Impact Mitigation Fund  This fund accounts for fire impact fees collected from developers as authorized under RCW 82.02.050‐.110. These fees are  used to offset the cost of system improvements necessary to serve the new development. Impact fees are held in this fund  and subsequently transferred to the debt service fund to support the debt service on fire station 13. Once the debt on the  fire station is repaid, the remaining collections will be disbursed to the Renton Regional Fire Authority for use on qualifying  capital projects.          Charges for Services and Contracted Services – The decrease is primarily due to decreased impact fees as large one‐time  project payments were received in 2022 for the Solera project. These fees collected are subsequently transferred to the  Renton Regional Fire Authority to fund capital projects.  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Fines  and penalties 2,294$                    ‐$                               490$                      (1,804)$                 490$                      N/A Investment Earnings 380                         ‐                                 2,382                     2,002                     2,382                     N/A TOTAL  REVENUES 2,674                      ‐                                 2,872                     198                        2,872                     N/A EXPENDITURES: Contracted Services ‐                              172,804                   4,544                     4,544                     (168,261)               2.63% Capital  Outlay 18,311                    ‐                                  ‐                              (18,311)                  ‐                              N/A TOTAL  EXPENDITURES 18,311                   172,804                   4,544                     (13,767)                 168,260                2.63% NET TRANSFERS ‐                               ‐                                  ‐                               ‐                               ‐                              N/A CHANGE IN  FUND BALANCE (15,637)                 (172,804)                  (1,672)                    13,965                   171,132                N/A BEGINNING FUND BALANCE, Jan 1 174,826                172,804                   172,804                (2,022)                     ‐                              100.00% ENDING FUND BALANCE, Jun 30 159,189$               ‐$                               171,132$              11,943$                171,132$              N/A POLICE CSAM SEIZURE VARIANCE FAVORABLE (UNFAVORABLE) 2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges  for services 1,138,401$           400,000$                29,416$                (1,108,985)$         (370,584)$             7.35% Investment Earnings 4,601                      ‐                                30,951                   26,350                   30,951                   N/A TOTAL  REVENUES 1,143,002             400,000                  60,367                   (1,082,635)            (339,633)               15.09% EXPENDITURES: Contracted Services ‐                              528,810                  187,518                187,518                (341,291)               35.46% TOTAL  EXPENDITURES ‐                              528,810                  187,518                187,518                341,292                35.46% Transfers  Out ‐                              (2,595,377)              (2,595,377)            (2,595,377)            0                             100.00% NET TRANSFERS ‐                              (2,595,377)              (2,595,377)            2,595,377              ‐                              100.00% CHANGE IN FUND BALANCE 1,143,002             (2,724,187)              (2,722,528)            (3,865,530)            1,659                     99.94% BEGINNING FUND BALANCE, Jan 1 1,960,733             2,724,187               2,724,187             763,454                 ‐                              100.00% ENDING FUND BALANCE, Jun 30 3,103,735$            ‐$                              1,659$                   (3,102,076)$         1,659$                   N/A FIRE IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 13 of 34   Transfers Out – The amount budgeted as a transfer out represents the final debt payoff approved for the Fire Station 13  intergovernmental debt with King County.     School District Impact Mitigation  This fund accounts for school district impact fees collected from developers as authorized under RCW 82.02.050‐.110.  These fees are used to help offset the cost of system improvements necessary to service the new development. Impact fees  are held in this fund and subsequently transferred to the Kent, Issaquah, or Renton School District for use on qualifying  capital projects.          Charges for Services and Contracted Services – The decrease is primarily due to decreased impact fees as large one‐time  project payments were received in 2022 for the Solera project. These fees collected are subsequently transferred to the  respective school district to fund capital projects.       2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges  for services 3,927,689$           995,000$                 121,821$              (3,805,868)$         (873,179)$             12.24% Investment Earnings 547                         ‐                                 306                        (241)                       306                        N/A TOTAL  REVENUES 3,928,236             995,000                    122,127                (3,806,109)            (872,873)               12.27% EXPENDITURES: Contracted Services 228,490                995,000                    116,195                (112,295)               878,805                11.68% TOTAL  EXPENDITURES 228,490                995,000                    116,195                (112,295)               878,805                11.68% NET TRANSFERS ‐                               ‐                                  ‐                               ‐                               ‐                              N/A CHANGE IN  FUND BALANCE 3,699,746              ‐                                 5,932                     (3,693,814)            5,932                     N/A BEGINNING FUND BALANCE, Jan 1 12                            ‐                                  ‐                              (12)                          ‐                              N/A ENDING FUND BALANCE, Jun 30 3,699,758$            ‐$                               5,932$                   (3,693,826)$         5,932$                   N/A SCHOOL  DISTRICT IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 14 of 34   CAPITAL PROJECT FUNDS  Capital project funds are used to account for the acquisition and construction of major capital facilities and equipment. YTD  budgets are not prepared for capital project funds. Project budgets are adopted when funding is secured, and balances are  carried forward each year until they are either 1) fully spent or 2) reallocated to another project through the budget  adjustment process. Detailed explanations will be provided for material differences between prior year and or budgeted  amounts.      Community Services Impact Mitigation Fund   This fund accounts for park impact fees collected from developers as authorized under RCW 82.02.050‐.110. These fees are  used to help offset the cost of system improvements necessary to service the new development. Impact fees are held in  this fund and subsequently transferred to the Municipal Facilities CIP Fund when qualifying capital projects are budgeted.          Charges for Services – The decrease in charges for services is primarily due to decreased impact fees as large one‐time  project payments were received in 2022 for the King County administration building and Solera projects.      2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges  for services 1,380,786$           86,500$                  77,825$                (1,302,961)$         (8,675)$                 89.97% Investment Earnings 7,637                      ‐                                22,836                   15,199                   22,836                   N/A TOTAL  REVENUES 1,388,423             86,500                     100,661                (1,287,762)            14,161                   116.37% EXPENDITURES: TOTAL  EXPENDITURES ‐                               ‐                                 ‐                               ‐                               ‐                              N/A Transfers  In ‐                               ‐                                 ‐                               ‐                               ‐                              N/A Transfers  Out ‐                              (1,090,000)               ‐                               ‐                              (1,090,000)            0.00% NET TRANSFERS ‐                              (1,090,000)               ‐                               ‐                              1,090,000             0.00% CHANGE IN FUND BALANCE 1,388,423             (1,003,500)              100,661                (1,287,762)            1,104,161              ‐10.03% BEGINNING FUND BALANCE, Jan 1 3,433,393             1,595,389               1,595,389             (1,838,004)             ‐                              100.00% ENDING FUND BALANCE, Jun 30 4,821,816$           591,889$                1,696,050$           (3,125,766)$         1,104,161$           286.55% COMMUNITY SERVICES IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 15 of 34   Transportation Impact Mitigation Fund  This fund accounts for transportation impact fees collected from developers as authorized under RCW 82.02.050‐.110.  These fees are used to offset the cost of system improvements necessary to serve the new development. Impact fees are  held in this fund and subsequently transferred to the Capital Improvement Fund when qualifying projects are budgeted.        Charges for Services – The decrease in charges for services is primarily due to decreased impact fees as large one‐time  project payments were received in 2022 for the King County administration building and Solera projects.          2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges  for services 6,971,036$           1,780,000$              515,918$              (6,455,118)$         (1,264,082)$         28.98% Investment Earnings 15,962                    ‐                                 100,082                84,120                   100,082                N/A TOTAL  REVENUES 6,986,998             1,780,000                616,000                (6,370,998)            (1,164,000)            34.61% EXPENDITURES: TOTAL  EXPENDITURES ‐                               ‐                                  ‐                               ‐                               ‐                              N/A Transfers  Out ‐                              (5,817,897)                ‐                               ‐                              (5,817,897)            0.00% NET TRANSFERS ‐                              (5,817,897)                ‐                               ‐                              (5,817,897)            0.00% CHANGE IN  FUND BALANCE 6,986,998             (4,037,897)               616,000                (6,370,998)            4,653,897             N/A BEGINNING FUND BALANCE, Jan 1 5,159,035             6,964,011                6,964,011             1,804,976              ‐                              100.00% ENDING FUND BALANCE, Jun 30 12,146,033$        2,926,114$              7,580,011$           (4,566,022)$         4,653,897$           259.05% TRANSPORTATION IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 16 of 34   REET 1 Fund  This fund was established in the 2nd quarter of 2020 to account for the first quarter percent of real estate excise tax (REET)  levied in accordance with RCW 82.46.010. The tax may be used for eligible capital projects, as defined in RCW.82.46.010(6),  that are included in the capital facilities element of the city’s comprehensive plan. REET 1 tax revenues are held in this fund  and subsequently transferred to the appropriate capital project fund when qualifying projects are budgeted.        Taxes – The decreases in taxes from prior year are due to decreased real estate transactions which were at historically high  levels in 2022. As interest rates rise, we may continue to see some impact on real estate excise taxes.     REET 2 Fund  This fund was established in the 2nd quarter of 2020 to account for the second quarter percent of real estate excise tax  (REET) levied in accordance with RCW 82.46.035. The tax may be used for eligible capital projects, as defined in  RCW.82.46.035(5), that are included in the capital facilities element of the city’s comprehensive plan. REET 2 tax revenues  are held in this fund and subsequently transferred to the appropriate capital project fund when qualifying projects are  budgeted.        Taxes – The decreases in taxes from prior year are due to decreased real estate transactions which were at historically high  levels in 2022. As interest rates rise, we may continue to see some impact on real estate excise taxes budget.     2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 2,023,312$           2,300,000$              1,053,793$           (969,519)$             (1,246,207)$         45.82% Investment Earnings 11,463                    ‐                                 48,078                   36,615                   48,078                   N/A TOTAL  REVENUES 2,034,775             2,300,000                1,101,871             (932,904)               (1,198,129)            47.91% EXPENDITURES: TOTAL  EXPENDITURES ‐                               ‐                                  ‐                               ‐                               ‐                              N/A Transfers  In ‐                               ‐                                  ‐                               ‐                               ‐                              N/A Transfers  Out ‐                              (3,500,000)                ‐                               ‐                              (3,500,000)            0.00% NET TRANSFERS ‐                              (3,500,000)                ‐                               ‐                              3,500,000             0.00% CHANGE IN  FUND BALANCE 2,034,775             (1,200,000)               1,101,871             (932,904)               2,301,871              ‐91.82% BEGINNING FUND BALANCE, Jan 1 4,508,117             3,049,711                3,049,711             (1,458,406)             ‐                              100.00% ENDING FUND BALANCE, Jun 30 6,542,892$           1,849,711$              4,151,582$           (2,391,310)$         2,301,871$           224.44% REET 1 VARIANCE FAVORABLE (UNFAVORABLE) 2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 2,023,312$           2,300,000$              1,053,792$           (969,520)$             (1,246,208)$         45.82% Investment Earnings 20,666                    ‐                                 89,563                   68,897                   89,563                   N/A TOTAL  REVENUES 2,043,978             2,300,000                1,143,355             (900,623)               (1,156,645)            49.71% EXPENDITURES: TOTAL  EXPENDITURES ‐                               ‐                                  ‐                               ‐                               ‐                              N/A Transfers  In ‐                               ‐                                  ‐                               ‐                               ‐                              N/A Transfers  Out ‐                              (5,403,625)                ‐                               ‐                              (5,403,625)            0.00% NET TRANSFERS ‐                              (5,403,625)                ‐                               ‐                              5,403,625             0.00% CHANGE IN  FUND BALANCE 2,043,978             (3,103,625)               1,143,355             (900,623)               4,246,980              ‐36.84% BEGINNING FUND BALANCE, Jan 1 8,773,145             6,019,961                6,019,961             (2,753,184)             ‐                              100.00% ENDING FUND BALANCE, Jun 30 10,817,123$        2,916,336$              7,163,316$           (3,653,807)$         4,246,980$           245.63% REET 2 VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 17 of 34   Municipal Facilities CIP Fund  This fund accounts for general governmental facility construction, improvement, and renovation; property acquisitions for  parks and city space needs; parks development and equipment; and major maintenance of existing general governmental  assets. Transportation capital improvements are accounted for in a separate fund.         Grants/intergovernmental – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is  budgeted at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires. The increase from prior year is  largely due to receiving grant funds for work performed on the Coulon North Water Walk project ($1.3M).     Investment Earnings – Investment earnings have varied over the past couple of years as the market has seen uncertainty  with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate, and we may  continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government Investment Pool  (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city  holds roughly 52% of the total cash and investments for the city in the LGIP.     Personnel – Decrease in personnel is due to budgeted anticipation of the bond projects being completed by 2022. A budget  adjustment will be made in the mid biennium budget adjustment for the capital project manager to align the budget with  actual expenditures through date in 2023.     Contracted Services – Contracted services are largely project driven and are dependent on the project timeline. The large  amount budgeted and unspent in 2023 is primarily related to the Pavilion remodel project and City Hall Lobby Remodel  ($6.7M). The increase from prior year is for City Hall Lobby Remodel and Pavilion Remodel expenditures through June 2023  totalling $178K.     Capital Outlay – Capital outlay fluctuates greatly with capital project schedules and contractor’s billings. A significant  number of projects began in late 2022, and it is anticipated significant capital outlay will be spent throughout 2023. The  largest YTD expenditures include Coulon North Water Walk ($3.2M), Kiwanis Park ($1.5M), Philip Arnold Park ($3M), and  the Miser Property Acquisition ($1M).     2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants  / intergovernmental 181,008$              4,860,872$            1,807,816$           1,626,808$           (3,053,056)$         37.19% Charges  for services 4,700                      ‐                               21,245                   16,545                   21,245                   N/A Investment Earnings 37,276                    ‐                               306,052                268,776                306,052                N/A TOTAL  REVENUES 222,984                4,860,872              2,135,113             1,912,129             (2,725,759)            43.92% EXPENDITURES: Personnel 211,799                15,489                    26,719                   (185,080)               (11,230)                 172.50% Contracted Services 84,264                   8,767,247              278,516                194,252                8,488,731             3.18% Capital  Outlay 1,554,876             26,147,605            9,590,339             8,035,463             16,557,266           36.68% TOTAL  EXPENDITURES 1,850,939             34,930,341            9,895,574             8,044,635             25,034,767           28.33% Transfers  In 3,000,000             5,580,379               ‐                              (3,000,000)            (5,580,379)            0.00% Transfers  Out (44,301)                 (100,000)                 ‐                              44,301                   (100,000)               N/A NET TRANSFERS 2,955,699             5,480,379               ‐                              (3,044,301)            (5,480,379)            0.00% CHANGE IN  FUND BALANCE 1,327,744             (24,589,090)          (7,760,461)            (9,088,205)            16,828,629           31.56% BEGINNING FUND BALANCE, Jan 1 16,824,783           24,671,384            24,671,384           7,846,601              ‐                              100.00% ENDING FUND BALANCE, Jun 30 18,152,527$        82,294$                 16,910,923$        (1,241,604)$         16,828,629$        20549.40% MUNICIPAL  FACILITIES CIP VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 18 of 34   Capital Improvement Fund  This fund accounts for the city’s transportation capital projects. Capital projects are budgeted in their entirety at the  inception of the project; funds are spent as the project progresses and may span over multiple years.        Grants/Intergovernmental– Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is  budgeted at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires. The decrease from prior year is  primarily due to three large projects receiving grant funding in 2022 including Rainier Phase 4, Lake Washington Loop Trail,  and Williams & Wells totalling $4.7M through June 2022.      Contributions – The amount over prior year is due to the contribution from a WSDOT contractor for the Gateway  Enhancement Project received in 2023.    Investment Earnings – Increase over prior year is primarily due to investment earnings. Investment earnings have varied  over the past couple of years as the market has seen uncertainty with the pandemic and now concerns of recession. This  revenue is highly influenced by the federal funds rate, and we may continue to see a rise in investment earnings as this is  adjusted. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely  track with the federal funds rate as it decreases or increases; the city holds roughly 52% of the total cash and investments  for the city in the LGIP.    Capital Outlay – Decrease in capital outlay expenditures from prior year is due to large ongoing projects reaching significant  completion dates. Largest decreases include Rainier Phase 4 which incurred significant easement and right‐of‐way  expenditures at the beginning of 2022 ($2.9M), and Duvall Ave project which is nearing completion ($2.4M in 2022).        2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants  / intergovernmental 5,885,412$           31,482,849$        3,735,568$           (2,149,844)$         (27,747,281)$       11.87% Charges  for services ‐                               ‐                              9,862                     9,862                     9,862                     N/A Fines  and penalties (85)                          ‐                               ‐                              85                            ‐                              N/A Contributions ‐                              200,000                200,000                200,000                 ‐                              100.00% Investment Earnings 21,050                    ‐                              205,564                184,514                205,564                N/A TOTAL  REVENUES 5,906,377             31,682,849           4,150,994             (1,755,383)            (27,531,855)         13.10% EXPENDITURES: Personnel 21,260                   14,491                   16,617                   (4,643)                    (2,126)                    114.67% Supplies 44,451                   30,000                   28,455                   (15,996)                 1,545                     94.85% Contracted Services 35,941                   534,355                74,308                   38,367                   460,047                13.91% Capital  Outlay 7,848,262             52,611,796           4,261,494             (3,586,768)            48,350,302           8.10% Internal Services 28,000                    ‐                              26,500                   (1,500)                    (26,500)                 N/A TOTAL  EXPENDITURES 7,977,914             53,190,642           4,407,374             (3,570,540)            48,783,268           8.29% Transfers  In ‐                              10,029,897            ‐                               ‐                              (10,029,897)         0.00% Transfers  Out ‐                               ‐                               ‐                               ‐                               ‐                              N/A NET TRANSFERS ‐                              10,029,897            ‐                               ‐                              (10,029,897)         0.00% CHANGE IN  FUND BALANCE (2,071,537)            (11,477,896)         (256,380)               1,815,157             11,221,516           N/A BEGINNING FUND BALANCE, Jan 1 10,868,853           12,561,975           12,561,975           1,693,122              ‐                              100.00% ENDING FUND BALANCE, Jun 30 8,797,316$           1,084,079$           12,305,595$        3,508,279$           11,221,516$        1135.12% CAPITAL IMPROVEMENT VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 19 of 34   Family First Center Fund  This fund is used to account for the construction of the new Family First Center. Funds accumulated for the construction of  the Family First Center are maintained in the fund balance until such time that Council authorizes their use through the  approval of contracts and additional project budget is established through the budget adjustment process.        Grants/Intergovernmental – The decrease from year is because this project completed a significant portion of the  construction work last year and recognized most of the grant revenue in 2022.     Contributions – The decrease from last year is due to timing of contributions of which many were stipulated on completing  different phases of the project. In 2023, the majority of the remaining Healthpoint contribution was received.     Capital Outlay – Decrease from prior year is due to the project timeline; the project is nearing completion and opened in  June to the public. Work will continue to be ongoing as smaller items on the project continue to be completed.         2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants  / intergovernmental 1,455,000$           20,000$                20,000$                (1,435,000)$          ‐$                            100.00% Contributions 4,692,222             3,602,152             2,980,000             (1,712,222)            (622,152)               82.73% Investment Earnings 19,004                    ‐                              32,260                   13,256                   32,260                   N/A TOTAL  REVENUES 6,166,226             3,622,152             3,032,260             (3,133,966)            (589,892)               83.71% EXPENDITURES: Contracted Services 33,148                    ‐                               ‐                              (33,148)                  ‐                              N/A Capital  Outlay 4,462,265             2,833,827             2,014,827             (2,447,438)            819,000                71.10% TOTAL  EXPENDITURES 4,495,413             2,833,827             2,014,827             (2,480,586)            819,000                71.10% Transfers  In 44,301                   1,000,000              ‐                              (44,301)                 (1,000,000)            0.00% Transfers  Out ‐                              (1,000,000)             ‐                               ‐                              (1,000,000)            N/A NET TRANSFERS 44,301                    ‐                               ‐                              (44,301)                  ‐                              N/A CHANGE IN  FUND BALANCE 1,715,114             788,325                1,017,433             (697,681)               229,108                129.06% BEGINNING FUND BALANCE, Jan 1 8,238,935             2,795,295             2,795,295             (5,443,640)             ‐                              100.00% ENDING FUND BALANCE, Jun 30 9,954,049$           3,583,620$           3,812,728$           (6,141,321)$         229,108$              106.39% FAMILY FIRST CENTER VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 20 of 34   ENTERPRISE FUNDS  Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business  enterprises. YTD budgets are not prepared for Enterprise Funds.     Most Enterprise Funds maintain two separate “management funds”, an operating fund and a capital fund. The funds are  consolidated for budget/reporting purposes. Operating budgets lapse at the end of the year. Project budgets are adopted  when funding is secured, and balances are carried forward each year until they are either 1) fully spent or 2) reallocated to  another project through the budget adjustment process. Detailed explanations will be provided for material differences  between prior year and or budgeted amounts.      Airport Fund  This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and  maintenance of the Renton Municipal Airport.           Charges for Services – The increase over prior year is largely due to a large agreement finalized for lease of airport space.  This agreement included retroactive payment for prior year activity contributing to the increase as well as trend over  budget for 2023.     Interest and Other Misc. – Increase over prior year is primarily due to investment earnings. Investment earnings have  varied over the past couple of years as the market has seen uncertainty with the pandemic and now concerns of recession.  This revenue is highly influenced by the federal funds rate, and we may continue to see a rise in investment earnings as this  is adjusted. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will  closely track with the federal funds rate as it decreases or increases; the city holds roughly 52% of the total cash and  investments for the city in the LGIP.  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants  / intergovernmental 5,334$              171,711$                29,954$           24,620$           (141,757)$        17.44% Charges  for services 1,742,932        4,355,432               3,248,676        1,505,744        (1,106,756)       74.59% Interest and other misc 17,611              3,857                       132,150           114,539           128,293           3426.24% TOTAL  REVENUES 1,765,877        4,531,000               3,410,780        1,644,903        (1,120,220)       75.28% EXPENSES: Personnel 541,130           1,457,417               559,663           (18,533)            897,754           38.40% Supplies 46,805              47,630                    41,413              5,392                6,217                86.95% Contracted Services 273,507           490,874                  222,918           50,589              267,956           45.41% Internal Services 224,498           445,696                  222,848           1,650                222,848           50.00% TOTAL  OPERATING EXPENSES 1,085,940        2,441,617               1,046,842        39,098              1,394,775        42.87% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 679,937           2,089,383               2,363,938        1,684,001        274,555           113.14% TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY 120,297           7,104,413               290,891           (170,594)          6,813,522        4.09% TRANSFERS  OUT ‐                          ‐                                 ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                          ‐                                 ‐                          ‐                          ‐                         N/A CHANGE IN  FUND BALANCE 559,640           (5,015,030)             2,073,047        1,513,407        7,088,077        N/A BEGINNING FUND BALANCE, Jan 1 7,741,751        8,925,690               8,925,690        1,183,939         ‐                         100.00% ENDING FUND BALANCE, Jun 30 8,301,391$      3,910,660$            10,998,737$   2,697,346$      7,088,077$      281.25% Operating Reserve 216,784           244,162                  244,162            AVAILABLE FUND BALANCE 8,084,607$      3,666,498$            10,754,575$    VARIANCE AIRPORT Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 21 of 34   Capital Outlay‐ The increase from prior year is due to work on the airport office rehabilitation and Taxiway Alpha projects in  2023. The amount under budget is due to several large projects delayed, including $2.7M for Airport Office Rehabilitation  and $2.1M for Taxiway Alpha Rehabilitation which has started planning but construction is anticipated to start in 2024.     Solid Waste Fund  This fund accounts for revenues and expenses for administration and operating of solid waste, recycling, and yard waste  collection services for the city.         Grants/Intergovernmental – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is  budgeted at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires. The increase from prior year  relates to a reimbursement received early in 2023 for 2022 expenditures $126K.     Charges for Services – The decrease from prior year is due to the timing of payments in 2022 as an additional month was  recorded in 2022. In 2023 January through June activity recorded each month has been higher than the 2022 monthly  amount collected.     Contracted Services‐ Contracted services will fluctuate with the charges for services as this line item includes payment to  the city’s garbage service provider and King County dump fees.  The decrease from prior year is primarily due to the May  2023 payment not yet being made for the dump fees to King County.      2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants  / intergovernmental 34,783$           360,168$                165,834$         131,051$         (194,334)$        46.04% Charges  for services 12,508,759      25,168,583            12,348,402      (160,357)          (12,820,181)    49.06% Interest and other misc 10,307              5,000                       51,248              40,941              46,248              1024.96% TOTAL  REVENUES 12,553,849      25,533,751            12,565,484      11,635              (12,968,267)    49.21% EXPENSES: Personnel 278,368           707,752                  276,290           2,078                431,462           39.04% Supplies 6,816                45,301                    9,616                (2,800)               35,685              21.23% Contracted Services 10,786,843      24,615,900            10,154,501      632,342           14,461,399      41.25% Internal Services 182,197           527,016                  263,508           (81,311)            263,508           50.00% TOTAL  OPERATING EXPENSES 11,254,224      25,895,969            10,703,915      550,309           15,192,054      41.33% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 1,299,625        (362,218)                 1,861,569        561,944           2,223,787        N/A TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL  OUTLAY ‐                          ‐                                 ‐                          ‐                          ‐                         N/A TRANSFERS  OUT ‐                         (84,275)                    ‐                          ‐                         (84,275)            N/A NET TRANSFERS ‐                         (84,275)                    ‐                          ‐                         84,275              N/A CHANGE IN  FUND BALANCE 1,299,625        (446,493)                 1,861,569        561,944           2,308,062        N/A BEGINNING FUND BALANCE, Jan 1 3,392,243        3,951,191               3,951,191        558,948            ‐                         100.00% ENDING FUND BALANCE, Jun 30 4,691,868$      3,504,698$            5,812,760$      1,120,892$      2,308,062$      165.86% Operating Reserve 400,000           400,000                  400,000            AVAILABLE FUND BALANCE 4,291,868$      3,104,698$            5,412,760$       SOLID WASTE VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 22 of 34   Golf Course Fund  This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and  maintenance of the Maplewood Golf Course.        Interest and Other Misc. – The decrease from prior year is due to recognizing an interfund loan payment of $225K in 2022  for the purchase of the new golf cart fleet.     Capital Outlay‐ The decrease in capital outlay expenditures from prior year is primarily due to the purchase of the golf cart  fleet in 2022 of $225K.                            2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges  for services 1,344,666$      2,546,155$            1,418,494$      73,828$           (1,127,661)$    55.71% Rents, leases, and misc  fees 182,696           527,600                  271,148           88,452              (256,452)          51.39% Interest and other misc 229,000           1,370                       27,709              (201,291)          26,339              2022.55% TOTAL  REVENUES 1,756,362        3,075,125               1,717,351        (39,011)            (1,357,774)       55.85% EXPENSES: Personnel 793,487           1,787,276               872,151           (78,664)            915,125           48.80% Supplies 179,303           312,500                  238,039           (58,736)            74,461              76.17% Contracted Services 65,447              206,350                  77,308              (11,861)            129,042           37.46% Internal Services 230,330           468,333                  234,167           (3,837)               234,166           50.00% TOTAL  OPERATING EXPENSES 1,268,567        2,774,459               1,421,665        (153,098)          1,352,794        51.24% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 487,795           300,666                  295,686           (192,109)          (4,980)               98.34% DEBT SERVICE: Principal 14,673              44,535                    22,212              (7,539)               22,323              49.88% Interest 733                   1,682                       896                   (163)                  786                   53.27% TOTAL  DEBT SERVICE 15,406              46,217                    23,108              (7,702)               23,109              50.00% CAPITAL OUTLAY 241,476           603,598                  16,462              225,014           587,136           2.73% NET TRANSFERS ‐                          ‐                                 ‐                          ‐                          ‐                         N/A CHANGE IN  FUND BALANCE 230,913           (349,149)                 256,116           25,203              605,265           N/A BEGINNING FUND BALANCE, Jan 1 1,222,897        1,609,927               1,609,927        387,030            ‐                         100.00% ENDING FUND BALANCE, Jun 30 1,453,810$      1,260,778$            1,866,043$      412,233$         605,265$         148.01% Operating Reserve 641,500           787,490                  787,490            AVAILABLE FUND BALANCE 812,310$         473,288$                1,078,553$       GOLF COURSE VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 23 of 34   Water Utility Fund  This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and  maintenance of the city’s water utility.        Grants/Intergovernmental – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is  budgeted at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires.     Charges for Services – The increase from prior year is due to increased consumption which through June is around 12%  higher than prior year. Water charges tend to see a significant increase during the summer months as typically irrigation  use is much higher.     Interest and Other Misc. – Increase over prior year is primarily due to investment earnings. Investment earnings have  varied over the past couple of years as the market has seen uncertainty with the pandemic and now concerns of recession.  This revenue is highly influenced by the federal funds rate, and we may continue to see a rise in investment earnings as this  is adjusted. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will  closely track with the federal funds rate as it decreases or increases; the city holds roughly 52% of the total cash and  investments for the city in the LGIP.  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants  / intergovernmental ‐$                       1,472,037$            38,125$           38,125$           (1,433,912)$    2.59% Charges  for services 7,913,550        19,133,877            8,190,725        277,175           (10,943,152)    42.81% Rents, leases, and misc  fees 124,511           136,591                  160,422           35,911              23,831              117.45% Interest and other misc 1,047,419        47,000                    1,106,874        59,455              1,059,874        2355.05% TOTAL  REVENUES 9,085,480        20,789,505            9,496,146        410,666           (11,293,359)    45.68% EXPENSES: Personnel 2,141,271        5,188,033               2,343,501        (202,230)          2,844,532        45.17% Supplies 496,992           886,189                  470,379           26,613              415,810           53.08% Contracted Services 1,516,062        3,527,786               1,502,090        13,972              2,025,696        42.58% Internal Services 1,385,442        2,940,571               1,470,285        (84,843)            1,470,286        50.00% TOTAL  OPERATING EXPENSES 5,539,767        12,542,579            5,786,255        (246,488)          6,756,324        46.13% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 3,545,713        8,246,926               3,709,891        164,178           (4,537,035)       44.99% DEBT SERVICE: Principal 315,517           1,504,997               272,647           42,870              1,232,350        18.12% Interest 90,937              164,913                  83,511              7,426                81,402              50.64% TOTAL  DEBT SERVICE 406,454           1,669,910               356,158           50,296              1,313,752        21.33% CAPITAL  OUTLAY 1,981,569        38,127,479            2,322,625        (341,056)          35,804,854      6.09% TRANSFERS  OUT ‐                         (40,000)                   (861)                  861                   (39,139)            N/A NET TRANSFERS ‐                         (40,000)                   (861)                  (861)                  39,139              N/A CHANGE IN  FUND BALANCE 1,157,690        (31,590,463)           1,030,247        (127,443)          32,620,710      N/A BEGINNING FUND BALANCE, Jan 1 43,849,867      48,208,077            48,208,077      4,358,210         ‐                         100.00% ENDING FUND BALANCE, Jun 30 45,007,557$   16,617,614$          49,238,324$   4,230,767$      32,620,710$   296.30% Restricted for Debt Service 1,394,050        1,394,050               1,394,050         Operating Reserve 1,624,606        1,706,760               1,706,760         AVAILABLE FUND BALANCE 41,988,901$   13,516,804$          46,137,514$    WATER UTILITY VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 24 of 34     Personnel – The increase from prior year is largely due to filling positions that were open in prior year and an increase for  cost‐of‐living adjustments.     Capital Outlay – The increase in capital outlay from prior year is driven by a few larger ongoing projects including Sunset  Gardens and Rainier Avenue projects.     Wastewater Utility Fund  This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and  maintenance of the city’s wastewater utility.      Charges for Services – The increase from prior year is due to the rates for wastewater increasing 3% from 2022. In addition,  consumption in 2023 has been slightly above prior year.    Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen  uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate,  and we may continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government  Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or  increases; the city holds roughly 52% of the total cash and investments for the city in the LGIP.    2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses  and permits 48,320$           62,734$                  35,900$           (12,420)$          (26,834)$          57.23% Charges  for services 5,768,817        11,928,231            5,985,098        216,281           (5,943,133)       50.18% Fines  and penalties 56                       ‐                                 ‐                         (56)                     ‐                         N/A Interest and other misc 572,548           74,000                    700,985           128,437           626,985           947.28% TOTAL  REVENUES 6,389,741        12,064,965            6,721,983        332,242           (5,342,982)       55.71% EXPENSES: Personnel 1,176,974        3,071,964               1,215,979        (39,005)            1,855,985        39.58% Supplies 20,998              74,441                    78,570              (57,572)            (4,129)               105.55% Contracted Services 1,143,395        2,512,265               1,194,258        (50,863)            1,318,007        47.54% Internal Services 976,070           1,999,188               999,594           (23,524)            999,594           50.00% TOTAL  OPERATING EXPENSES 3,317,437        7,657,858               3,488,401        (170,964)          4,169,457        45.55% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 3,072,304        4,407,107               3,233,582        161,278           (1,173,525)       73.37% DEBT SERVICE: Principal ‐                         588,350                   ‐                          ‐                         588,350           0.00% Interest 39,597              73,449                    36,575              3,022                36,874              49.80% TOTAL  DEBT SERVICE 39,597              661,799                  36,575              3,022                625,224           5.53% CAPITAL OUTLAY 1,853,942        17,103,445            469,552           1,384,390        16,633,893      2.75% TRANSFERS  IN ‐                          ‐                                 ‐                          ‐                          ‐                         N/A TRANSFERS  OUT ‐                         (22,000)                    ‐                          ‐                         (22,000)            N/A NET TRANSFERS ‐                         (22,000)                    ‐                          ‐                         22,000              N/A CHANGE IN  FUND BALANCE 1,178,765        (13,380,137)           2,727,455        1,548,690        16,107,592      N/A BEGINNING FUND BALANCE, Jan 1 20,788,687      22,850,871            22,850,871      2,062,184         ‐                         100.00% ENDING FUND BALANCE, Jun 30 21,967,452$   9,470,734$            25,578,326$   3,610,874$      16,107,592$   270.08% Restricted for Debt Service 661,227           661,227                  661,227            Operating Reserve 913,756           975,361                  975,361            AVAILABLE FUND BALANCE 20,392,469$   7,834,146$            23,941,738$    WASTEWATER UTILITY VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 25 of 34   Capital Outlay – The decrease from prior year is primarily due to the majority of project expenses for Downtown Sewer  Replacement and Rehabilitation project that occurred in 2022 and the Renton Highlands Sanitary Sewer Rehabilitation  project that was completed in 2022.           King County Metro Fund   This fund accounts for revenues and expenses for operation of the city’s wastewater utility, as it relates to charges for and  payment to King County Metro for water treatment services.        Charges for Services – Increase from prior year is largely due the increase in King County fees which is passed through to  wastewater customers.     Contracted Services – The increase from prior year relates to the increase in King County fees and the timing of payments  to King County. Payments were properly corrected in 2023 to reflect in the appropriate month for which they relate to.                            2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges  for services 9,292,307$      19,358,929$          10,031,792$   739,485$         (9,327,137)$    51.82% Interest and other misc 11,579               ‐                                86,355              74,776              86,355              N/A TOTAL  REVENUES 9,303,886        19,358,929            10,118,147      814,261           (9,240,782)       52.27% EXPENSES: Contracted Services 7,637,611        20,173,811            10,129,590      (2,491,979)       10,044,221      50.21% TOTAL  OPERATING EXPENSES 7,637,611        20,173,811            10,129,590      (2,491,979)       10,044,221      50.21% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 1,666,275        (814,882)                 (11,443)            (1,677,718)       803,439           N/A TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY ‐                          ‐                                 ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                          ‐                                 ‐                          ‐                          ‐                         N/A CHANGE IN  FUND BALANCE 1,666,275        (814,882)                 (11,443)            (1,677,718)       803,439           N/A BEGINNING FUND BALANCE, Jan 1 3,764,012        6,237,142               6,237,142        2,473,130         ‐                         100.00% ENDING FUND BALANCE, Jun 30 5,430,287$      5,422,260$            6,225,699$      795,412$         803,439$         114.82% Operating Reserve 380,000           380,000                  380,000            AVAILABLE FUND BALANCE 5,050,287$      5,042,260$            5,845,699$       KING COUNTY METRO VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 26 of 34                 Surface Water Utility Fund   This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and  maintenance of the city’s surface water utility.        Grants/Intergovernmental – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenses, and reimbursement of related expenses. Grant revenue is budgeted at  100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenses occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires. The increase from prior year  relates to capital project grants as they are received after expenditures have been spent on the projects.     2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses  and permits 14,334$           51,217$                  16,125$           1,791$              (35,092)$          31.48% Grants  / intergovernmental 1,014,980        12,994,864            1,265,143        250,163           (11,729,721)    9.74% Charges  for  services 6,411,996        13,122,100            6,740,212        328,216           (6,381,888)       51.37% Interest and other misc 1,113,177        1,377,519               1,268,398        155,221           (109,121)          92.08% TOTAL  REVENUES 8,554,487        27,545,700            9,289,878        735,391           (18,255,822)    33.73% EXPENSES: Personnel 1,940,384        4,575,050               1,939,205        1,179                2,635,845        42.39% Supplies 44,980              174,650                  65,626              (20,646)            109,024           37.58% Contracted Services 888,923           4,625,819               763,844           125,079           3,861,975        16.51% Internal Services 1,434,739        2,989,720               1,494,860        (60,121)            1,494,860        50.00% TOTAL  OPERATING EXPENSES 4,309,026        12,365,239            4,263,535        45,491              8,101,704        34.48% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 4,245,461        15,180,461            5,026,343        780,882           (10,154,118)    33.11% DEBT SERVICE: Principal ‐                         664,300                   ‐                          ‐                         664,300           0.00% Interest 48,088              90,517                    45,117              2,971                45,400              49.84% TOTAL  DEBT SERVICE 48,088              754,817                  45,117              2,971                709,700           5.98% CAPITAL OUTLAY 2,115,057        28,534,294            728,592           1,386,465        27,805,702      2.55% Transfers  In ‐                          ‐                                 ‐                          ‐                          ‐                         N/A Transfers  Out ‐                          ‐                                 ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                          ‐                                 ‐                          ‐                          ‐                         N/A CHANGE IN  FUND BALANCE 2,082,316        (14,108,650)           4,252,634        2,170,318        18,361,284      N/A BEGINNING FUND BALANCE, Jan 1 21,682,758      28,314,755            28,314,756      6,631,998        1                        100.00% Prior Period Adjustment ‐                          ‐                                 ‐                          ‐                          ‐                         N/A BEGINNING FUND BALANCE, Jan 1 ‐ restated 21,682,758      28,314,755            28,314,756      6,631,998        1                        100.00% ENDING FUND BALANCE, Jun 30 23,765,074$   14,206,105$          32,567,390$   8,802,316$      18,361,285$   229.25% Restricted for Debt Service 754,868           754,868                  754,868            Operating Reserve 1,109,340        1,245,213               1,245,213         AVAILABLE FUND BALANCE 21,900,866$   12,206,024$          30,567,309$    SURFACE WATER UTILITY VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 27 of 34   Charges for Services ‐ Surface water charges increased from prior year as the rates for surface water charged to utility users  increased 4% in 2023.    Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen  uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate,  and we may continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government  Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or  increases; the city holds roughly 52% of the total cash and investments for the city in the LGIP.    Contracted Services – The decrease from prior year relates to construction projects professional services for expenditures  that are not capital in nature. This decrease directly coincides with the decrease in capital outlay expenditures in 2023.    Capital Outlay – Decrease from prior year primarily relates to the Downtown Storm System Improvement project which  had most of its work completed in 2022 as well as the NE 16th and Jefferson Ave NE Stormwater project which was  completed in 2022.   Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 28 of 34   INTERNAL SERVICE FUNDS  Internal service funds are used to account for the goods and services furnished by one city department to other city  departments on a cost reimbursement basis. YTD budgets are not prepared for Internal Service Funds.    Equipment Rental Fund  This fund accounts for revenues and expenses for administration, purchase, and maintenance of the city’s vehicle and  equipment fleet services. Departments pay in monthly amounts for maintenance and operations. Replacement reserves are  paid monthly over the estimated useful lives of each individual vehicle or piece of equipment. These reserves are  accumulated in fund balance so that they are available to fund the replacement of the vehicle/equipment when the time  comes.   Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen  uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate,  and we may continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government  Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or  increases; the city holds roughly 52% of the total cash and investments for the city in the LGIP.    Contracted Services – The amount currently over budget and increase from prior year is primarily due to higher than  anticipated vehicle repair and maintenance costs for accident repair as well as external expenditures for outside agencies  which are reimbursed and are reflected in the charges for services revenues.     Capital Outlay – The increase from prior year is due to an increase in vehicle purchases due to major supply chain issues in  prior year that delayed purchases and at times made it challenging to order the specific vehicles needed. The amount under  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges  for services 44,563$            ‐$                             41,017$           (3,546)$            41,017$           N/A Interdepartmental  services 3,186,636        6,435,263               3,274,107        87,471              (3,161,156)       50.88% Interest and other misc 46,229              12,000                    216,056           169,827           204,056           1800.47% TOTAL  REVENUES 3,277,428        6,447,263               3,531,180        253,752           (2,916,083)       54.77% EXPENSES: Personnel 555,289           1,317,447               577,290           (22,001)            740,157           43.82% Supplies 879,841           1,531,153               863,430           16,411              667,723           56.39% Contracted Services 159,638           133,165                  207,500           (47,862)            (74,335)            155.82% Internal Services 15,384              131,363                  65,682              (50,298)            65,681              50.00% TOTAL  OPERATING EXPENSES 1,610,152        3,113,128               1,713,902        (103,750)          1,399,226        55.05% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 1,667,276        3,334,135               1,817,278        150,002           (1,516,857)       54.51% TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL  OUTLAY (1,111)               6,699,462               1,705,389        (1,706,500)       4,994,073        25.46% TRANSFERS  IN ‐                         3,438,700                ‐                          ‐                         (3,438,700)       0.00% TRANSFERS  OUT ‐                          ‐                                 ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                         3,438,700                ‐                          ‐                         (3,438,700)       0.00% CHANGE IN  FUND BALANCE 1,668,387        73,373                    111,889           (1,556,498)       38,516              152.49% BEGINNING FUND BALANCE, Jan 1 10,125,169      13,277,635            13,277,635      3,152,466         ‐                         100.00% ENDING FUND BALANCE, Jun 30 11,793,556$   13,351,008$          13,389,524$   1,595,968$      38,516$           100.29% Operating Reserves 13,351,008$          13,351,008$    AVAILABLE FUND BALANCE 11,793,556$    ‐$                             38,516$            EQUIPMENT RENTAL VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 29 of 34   budget is due to not yet replacing all budgeted vehicles for the year. Vehicle replacement varies each year based on the  condition and usage of vehicles as well as the availability of suitable replacement vehicles to purchase.     Insurance Fund  This fund accounts for the administration and operation of the city’s self‐insurance programs for property losses, liability,  workers’ compensation, and unemployment compensation. Expenses are paid by the Insurance Fund and rates are charged  to departments based on their claims history over the preceding five years and coverage requirements.        Interdepartmental Services – The increase over prior year is due to additional charge outs to city departments for  additional anticipated claims costs and increased insurance premiums which have risen significantly in the last several  years.    Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen  uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate,  and we may continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government  Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or  increases; the city holds roughly 52% of the total cash and investments for the city in the LGIP.    Personnel – Increase from prior year is due to cost‐of‐living adjustments in 2023 and the series promotion of personnel  within the department.            2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental  services 1,980,672$      4,838,982$            2,302,126$      321,454$         (2,536,856)$    47.57% Interest and other misc 175,789           22,000                    528,155           352,366           506,155           2400.70% TOTAL  REVENUES 2,156,461        4,860,982               2,830,281        673,820           (2,030,701)       58.22% EXPENSES: Personnel 450,137           2,184,056               713,648           (263,511)          1,470,408        32.68% Supplies ‐                         6,956                        ‐                          ‐                         6,956                0.00% Contracted Services 1,043,512        4,214,863               1,107,987        (64,475)            3,106,876        26.29% TOTAL  OPERATING EXPENSES 1,493,649        6,405,875               1,821,635        (327,986)          4,584,240        28.44% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 662,812           (1,544,893)             1,008,646        345,834           2,553,539        N/A TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL  OUTLAY ‐                          ‐                                 ‐                          ‐                          ‐                         N/A Transfers  In 152,772           136,346                   ‐                         (152,772)          (136,346)          0.00% Transfers  Out ‐                         (952,868)                  ‐                          ‐                         (952,868)          N/A NET TRANSFERS 152,772           (816,522)                  ‐                         (152,772)          816,522           N/A CHANGE IN  FUND BALANCE 815,584           (2,361,415)             1,008,646        193,062           3,370,061        N/A BEGINNING FUND BALANCE, Jan 1 20,494,538      23,221,020            23,221,020      2,726,482         ‐                         100.00% ENDING FUND BALANCE, Jun 30 21,310,122$   20,859,605$          24,229,666$   2,919,544$      3,370,061$      116.16% Operating Reserves 13,952,413      16,897,915            16,897,915       AVAILABLE FUND BALANCE 7,357,709$      3,961,690$            7,331,751$       INSURANCE VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 30 of 34   Information Technology Fund  This fund accounts for the administration, purchase, and operation of the city’s information technology systems, including  computer hardware and software, network servers and infrastructure, phone systems, and cell phones. Expenses are paid  by the Information Technology Fund and rates are charged to departments based on use.       Interdepartmental Services – The decrease from prior year is primarily related to a decrease in charges to departments for  the replacement reserve of the city’s ERP system which was budgeted and fully recovered in 2022.     Personnel – The increase from prior year is primarily due to cost‐of‐living salary increases.    Supplies ‐ The amount under prior year is due to a significant cost in 2022 related to Axon body cameras of $660K.    Contracted Services – The increase over prior year is due to new service contracts as well as increased costs including text  archiving software ($60K), NeoGov software ($58K), and the IT Strategic Plan contract ($128K).    Capital Outlay –The increase in capital outlay over prior year is due to the Disaster Recovery project $682K, as well as IT  upgrades at the Renton Community Center 108K.                   2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses  and permits 147,679$         150,000$                122,644$         (25,035)$          (27,356)$          81.76% Interdepartmental  services 4,564,374        7,355,590               3,677,798        (886,576)          (3,677,792)       50.00% Interest and other misc 8,401                7,000                       122,828           114,427           115,828           1754.69% TOTAL  REVENUES 4,720,454        7,512,590               3,923,270        (797,184)          (3,589,320)       52.22% EXPENSES: Personnel 1,552,276        3,873,557               1,659,347        (107,071)          2,214,210        42.84% Supplies 898,317           1,143,289               171,381           726,936           971,908           14.99% Contracted Services 1,319,839        3,370,380               1,698,391        (378,552)          1,671,989        50.39% Internal Services ‐                         6,537                       3,269                (3,269)               3,268                50.01% TOTAL  OPERATING EXPENSES 3,770,432        8,393,763               3,532,388        238,044           4,861,375        42.08% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 950,022           (881,173)                 390,882           (559,140)          1,272,055        N/A TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL  OUTLAY 105,072           5,568,965               946,430           (841,358)          4,622,535        16.99% TRANSFERS  IN 2,003,064        1,317,495               16,400              (1,986,664)       (1,301,095)       1.24% NET TRANSFERS 2,003,064        1,317,495               16,400              (1,986,664)       (1,301,095)       1.24% CHANGE IN  FUND BALANCE 2,848,014        (5,132,643)             (539,148)          (3,387,162)       4,593,495        N/A BEGINNING FUND BALANCE, Jan 1 3,653,455        9,021,343               9,021,343        5,367,888         ‐                         100.00% ENDING FUND BALANCE, Jun 30 6,501,469$      3,888,700$            8,482,195$      1,980,726$      4,593,495$      218.12% Operating Reserves 2,326,091$            2,326,091$       AVAILABLE FUND BALANCE 6,501,469$      1,562,609$            6,695,252$       INFORMATION  TECHNOLOGY VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 31 of 34   Facilities Fund  This fund accounts for the administration, maintenance, and operation of city‐owned facilities. Expenses are paid by the  Facilities Fund and rates are charged to departments based on square footage.       Interdepartmental Services – The increase over prior year is due to increased expenses in facilities charged through an  internal service fund charge to each department as well as cost of living salary increases for facilities personnel charged to  other city departments.     Supplies – The increase over prior year is largely due to an increased need for office furniture including new furniture for  positions added in the 2023 budget ($65K), and additional furniture needed for lobby personnel shifting around city hall  ($50K).    Contracted Services – The increase over prior year is primarily due to an increased need for repair and maintenance to  facilities. Much of the increase is attributed to larger one‐time projects. In 2023, facilities has had new card readers  installed ($36K), roof and gutter cleaning ($45K) and replacement of blinds at the senior center ($13K).      2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental  services 3,300,958$      6,883,097$            3,459,015$      158,057$         (3,424,082)$    50.25% Interest and other misc 1,137                4,000                       8,246                7,109                4,246                206.15% TOTAL  REVENUES 3,302,095        6,887,097               3,467,261        165,166           (3,419,836)       50.34% EXPENSES: Personnel 1,759,235        4,257,370               1,796,509        (37,274)            2,460,861        42.20% Supplies 404,370           858,395                  519,497           (115,127)          338,898           60.52% Contracted Services 648,329           1,876,861               824,787           (176,458)          1,052,074        43.95% Internal Services 65,980              273,086                  136,543           (70,563)            136,543           50.00% TOTAL  OPERATING EXPENSES 2,877,914        7,265,712               3,277,336        (399,422)          3,988,376        45.11% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 424,181           (378,615)                 189,925           (234,256)          568,540           N/A TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY 4,103                 ‐                                7,550                (3,447)               (7,550)               N/A Transfers  In ‐                         255,040                   ‐                          ‐                         (255,040)          0.00% NET TRANSFERS ‐                         255,040                   ‐                          ‐                         (255,040)          0.00% CHANGE IN  FUND BALANCE 420,078           (123,575)                 182,375           (237,703)          305,950           N/A BEGINNING FUND BALANCE, Jan 1 785,189           937,922                  937,922           152,733            ‐                         100.00% ENDING FUND BALANCE, Jun 30 1,205,267$      814,347$                1,120,297$      (84,970)$          305,950$         137.57% FACILITIES VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 32 of 34   Communications Fund  This fund accounts for community and intergovernmental relations and communications with the public. Communications  is a major activity of the city’s administration responsible for external communications, employee communications, media  relations, and coordination of all departments in producing the city’s website. Expenses are paid by the Communications  Fund and rates are charged to departments based on usage.        Interdepartmental services – The increase over prior year primarily relates to an increase in budgeted charges to each  department due to increased budgets for expenditure items including personnel, which received a cost‐of‐living adjustment  in 2023.      2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental  services 686,587$         1,592,402$            796,150$         109,563$         (796,252)$        50.00% Interest and other misc 122                   1,000                       5,086                4,964                4,086                508.60% TOTAL  REVENUES 686,709           1,593,402               801,236           114,527           (792,166)          50.28% EXPENSES: Personnel 411,930           1,184,992               474,394           (62,464)            710,598           40.03% Supplies 19,918              55,432                    25,015              (5,097)               30,417              45.13% Contracted Services 137,967           401,155                  161,375           (23,408)            239,780           40.23% Internal Services 1,017                4,696                       2,348                (1,331)               2,348                50.00% TOTAL  OPERATING EXPENSES 570,832           1,646,275               663,132           (92,300)            983,143           40.28% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 115,877           (52,873)                   138,104           22,227              190,977           N/A TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL  OUTLAY ‐                         46,651                     ‐                          ‐                         46,651              0.00% Transfers  Out ‐                         18,775                     ‐                          ‐                         18,775              0.00% NET TRANSFERS ‐                         (18,775)                    ‐                          ‐                         18,775              N/A CHANGE IN  FUND BALANCE 115,877           (118,299)                 138,104           22,227              256,403           N/A BEGINNING FUND BALANCE, Jan 1 141,517           428,724                  428,724           287,207            ‐                         100.00% ENDING FUND BALANCE, Jun 30 257,394$         310,425$                566,828$         309,434$         256,403$         182.60% COMMUNICATIONS VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 33 of 34   Health Insurance Fund  This fund accounts for the city’s self‐insured health insurance program. Expenses/claims are paid by the Health Insurance  Fund and rates are charged to employees and departments based on annual premiums determined by the city’s Employee  Health Plan Board for each type of coverage elected by the employee; paid semi‐monthly in conjunction with each payroll.         Premiums – The increase in premiums from prior year is due to increasing insurance costs which increased 24% from prior  year.    Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen  uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate,  and we may continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government  Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or  increases; the city holds roughly 52% of the total cash and investments for the city in the LGIP.                           2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Premiums 6,333,547$      15,603,216$            6,630,422$      296,875$         (8,972,794)$    42.49% Interest and other misc 179,508           520,000                    373,385           193,877           (146,615)          71.80% TOTAL  REVENUES 6,513,055        16,123,216               7,003,807        490,752           (9,119,409)       43.44% EXPENSES: Personnel 187,104           339,251                    165,343           21,761              173,908           48.74% Medical/Dental  Claims 5,305,847        14,166,872               5,991,491        (685,644)          8,175,381        42.29% Supplies 660                   7,500                         2,035                (1,375)               5,465                27.13% Contracted Services 242,662           579,786                    240,164           2,498                339,622           41.42% Internal Services 46,835              103,752                    51,876              (5,041)               51,876              50.00% TOTAL  OPERATING EXPENSES 5,783,108        15,197,161               6,450,909        (667,801)          8,746,252        42.45% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 729,947           926,055                    552,898           (177,049)          (373,157)          59.70% TOTAL  DEBT SERVICE ‐                          ‐                                   ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY ‐                          ‐                                   ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                          ‐                                   ‐                          ‐                          ‐                         N/A CHANGE IN  FUND BALANCE 729,947           926,055                    552,898           (177,049)          (373,157)          59.70% BEGINNING FUND BALANCE, Jan 1 6,655,137        6,935,644                 6,935,644        280,507            ‐                         100.00% ENDING FUND BALANCE, Jun 30 7,385,084$      7,861,699$               7,488,542$      103,458$         (373,157)$        95.25% Insurance Reserves 3,774,249        4,559,148                 4,559,148         AVAILABLE FUND BALANCE 3,610,835$      3,302,551$               2,929,394$       HEALTH INSURANCE VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 2nd Quarter 2023  Page 34 of 34   Retiree Healthcare Fund  This fund accounts for the city’s self‐insured health insurance program for LEOFF1 retirees. Benefits include medical,  prescription drug, Medicare Part B premiums, long‐term care, and vision coverage for retired law enforcement officers and  firefighters that were employed by the city prior to October 1, 1977. Dependent spouses and children are not covered.  100% of premiums are provided by the General Fund with annual contributions determined after review of a report  prepared by actuaries.         Premiums – The decrease from prior year is due a budgeted decrease; the fund was receiving more funding than required  in the prior year.     Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen  uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate,  and we may continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government  Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or  increases; the city holds roughly 52% of the total cash and investments for the city in the LGIP.          CONTACT INFORMATION  This report is prepared by the Finance Department. For additional financial information, please also review our website:  http://www.rentonwa.gov/.  For any questions about the report, please feel free to contact Nate Malone at  nmalone@rentonwa.gov or Kristin Trivelas ktrivelas@rentonwa.gov . 2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants  / intergovernmental ‐$                       40,000$                   ‐$                        ‐$                       (40,000)$          0.00% Premiums 1,312,342        1,825,000               912,500           (399,842)          (912,500)          50.00% Interest and other misc 96,708              170,000                  365,939           269,231           195,939           215.26% TOTAL  REVENUES 1,409,050        2,035,000               1,278,439        (130,611)          (756,561)          62.82% EXPENSES: Personnel 38,448              101,664                  49,008              (10,560)            52,656              48.21% Medical/Dental  Claims 566,623           1,201,877               607,638           (41,015)            594,239           50.56% Contracted Services 28,685              66,293                    38,121              (9,436)               28,172              57.50% TOTAL  OPERATING EXPENSES 633,756           1,369,834               694,767           (61,011)            675,067           50.72% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 775,294           665,166                  583,672           (191,622)          (81,494)            87.75% TOTAL  DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL  OUTLAY ‐                          ‐                                 ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                          ‐                                 ‐                          ‐                          ‐                         N/A CHANGE IN  FUND BALANCE 775,294           665,166                  583,672           (191,622)          (81,494)            87.75% BEGINNING FUND BALANCE, Jan 1 18,188,260      19,928,792            19,928,792      1,740,532         ‐                         100.00% ENDING FUND BALANCE, Jun 30 18,963,554$   20,593,958$          20,512,464$   1,548,910$      (81,494)$          99.60% Insurance Reserves 18,963,554      20,593,958            20,512,464       AVAILABLE FUND BALANCE ‐$                        ‐$                              ‐$                        RETIREE HEALTHCARE VARIANCE