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HomeMy WebLinkAboutQUARTER 3 2023Page 1 of 35   OVERVIEW  This quarterly financial report reflects the city’s revenue and expenditures/expenses for the fiscal year through September  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 2nd quarter 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 72,629,730$      99,476,943$    70,022,944$      80,321,845$      7,692,115$        10,298,901$     80.74% Licenses & Permits 5,875,790            5,792,660          4,584,953            5,136,398            (739,392)$           551,445                88.67% Intergovernmental 16,178,667         9,199,969          7,434,793            4,003,872            (12,174,795)$    (3,430,921)          43.52% Charges for Services 8,532,959            11,186,962       9,148,582            8,808,288            275,329$             (340,294)              78.74% Fines and Penalties 3,164,078            3,841,442          2,897,764            2,848,680            (315,398)$           (49,084)                 74.16% Miscellaneous 1,842,858            1,673,835          1,166,692            4,035,135            2,192,277$        2,868,443           241.07% Other Financing Sources (Transfer‐In, etc) 494,868                1,976,216          1,976,216            51,752                    (443,116)$           (1,924,464)          2.62% TOTAL REVENUES 108,718,950      133,148,027    97,231,944         105,205,970      (3,512,980)          7,974,026           79.01% EXPENDITURES City Attorney 2,115,048            3,227,575          2,412,139            2,282,854            (167,806)              129,285                70.73% Community and Economic Development 8,059,679            15,062,857       10,708,000         9,315,844            (1,256,165)          1,392,156           61.85% Council 509,786                743,244               550,893                 538,965                 (29,179)                 11,928                   72.52% Court Services 2,319,571            3,532,292          2,631,328            2,396,563            (76,992)                 234,765                67.85% Equity, Housing, and Human Services 2,256,921            5,310,611          3,435,239            2,417,780            (160,859)              1,017,459           45.53% Executive Services 4,081,042            6,504,746          4,795,704            4,419,207            (338,165)              376,497                67.94% Finance 3,065,715            5,363,865          3,629,949            3,284,293            (218,578)              345,656                61.23% Human Resources 1,151,400            1,942,172          1,423,131            1,179,026            (27,626)                 244,105                60.71% Parks and Recreation 11,051,443         17,292,831       12,516,169         11,997,061         (945,618)              519,108                69.38% Police 33,255,176         49,793,835       36,260,858         36,501,838         (3,246,660)          (240,980)              73.31% Public Works 11,351,604         16,987,204       12,526,230         12,069,681         (718,077)              456,549                71.05% Other Non‐Departmental 8,933,188            12,804,723       3,816,199            2,318,104            6,615,084           1,498,095           18.10% TOTAL EXPENDITURES 88,150,573         138,565,955    94,705,838         88,721,216         (570,643)              5,984,622           64.03% Change in Fund Balance 20,568,377         (5,417,928)         2,526,106            16,484,754         (4,083,623)          13,958,648        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 89,671,039$      78,188,050$    86,132,084$      100,090,732$   10,419,693$     13,958,648$     128.01% Operating Reserve 13,994,674         13,477,763       13,477,763         13,477,763          Economic Development Reserve 2,500,000            2,500,000          2,500,000            2,500,000             AVAILABLE FUND BALANCE 73,176,365$      62,210,287$    70,154,321$      84,112,969$       Favorable (Unfavorable) 2022 2023 Variance YTD Actual Annual Budget YTD Budget YTD Actual Summary of Sources and Uses Quarterly Financial Report 3rd Quarter 2023  Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 2 of 35   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 September 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. The breakdown of utility tax is as follows:  2022 2023 2023 Actual Budget Actual $ % $ % Property Tax 12,816,041         13,807,818          13,713,600         897,559              7.0%(94,218)                ‐0.7% Local Retail Sales Tax 27,376,592         25,184,543          27,947,349         570,757              2.1% 2,762,806         11.0% State Sales Tax Credit 493,566                 490,201                 484,587                 (8,979)                   ‐1.8% (5,614)                   ‐1.1% Criminal Justice Sales Tax 2,796,776            2,297,086             2,939,129            142,353              5.1% 642,043              28.0% Natural Gas Use Tax 171,518                 153,381                 290,414                 118,896              69.3% 137,033              89.3% Admission Tax 211,230                 464,176                 960,133                 748,903              354.5% 495,957              106.8% Utility Tax 12,935,730         12,075,408          14,003,239         1,067,509         8.3% 1,927,831         16.0% Leasehold Excise Tax 132,989                 137,114                 207,019                 74,030                 55.7% 69,905                 51.0% Gambling Excise Tax 2,912,603            1,977,694             2,762,374            (150,229)             ‐5.2%784,680              39.7% B&O Tax 12,782,685         13,435,523          17,014,001         4,231,316         33.1% 3,578,478         26.6% YTD Total 72,629,730$      70,022,944$       80,321,845$      7,692,115$      10.6% 10,298,901$   14.7% Annual Total 102,213,407$   99,476,943$        Taxes by Type Revenue 2023 vs. 2022 2023 vs. Budget Year to Date through September Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 3 of 35       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  taxes versus historical activity.  The decrease from prior year is due to card games taxes decreasing from 2022 around 13%  which was the highest performing year for the card game activities.     Business and Occupation (B&O) Tax – B&O tax revenues are above the 2023 budget and increased from prior year due to  the increase in the tax cap in 2023 as well as increased tax rates which were in effect for reporting periods beginning after  January 1, 2023.     LICENSES & PERMITS      Franchise Fees – The amount under the year‐to‐date budget is largely due to a decrease in cable franchise fees which are  based on a percentage of revenue. This coincides with the cable utility tax which has been on decline as customer base  continues to diminish as internet usage increases.     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, King County Parks Shop 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 4,619,994$     4,231,439$         5,083,764$                463,770$                    10.0% $      852,325 20.1% Natural Gas 1,404,804        1,064,378            1,663,732                   258,928                       18.4%          599,354 56.3% Cell 388,703            363,658                 355,841                       (32,862)                          ‐8.5%              (7,817)‐2.2% Phone 522,376            473,114                 454,615                       (67,761)                          ‐13.0%           (18,499)‐3.9% Cable 921,171            1,067,117            968,941                       47,770                          5.2%           (98,176)‐9.2% Garbage 555,083            588,249                 646,333                       91,250                          16.4%             58,084 9.9% City Utilities 4,523,599        4,287,453            4,830,013                   306,414                       6.8%          542,560 12.7% YTD Total 12,935,730$  12,075,408$      14,003,239$             1,067,509$                8.3%1,927,831$  16.0% 2023 vs. 2022 2023 vs. Budget 2022 2023 2023 Actual Budget Actual $ % $ % Franchise Fees 1,142,553            1,269,287             1,062,148            (80,405)                ‐7.0% (207,139)             ‐16.3% Business Licenses 899,615                 747,543                 915,803                 16,189                 1.8% 168,260              22.5% Animal Licenses 49,030                    50,125                    48,810                    (220)                        ‐0.4% (1,315)                   ‐2.6% Building Permits 3,751,199            2,476,878             3,079,997            (671,202)             ‐17.9%603,119              24.3% ROW/Street Excavation Permits 32,374                    40,120                    28,790                    (3,584)                   ‐11.1% (11,330)                ‐28.2% Special Event Permits 1,020                       1,000                       850                           (170)                        ‐16.7% (150)                        ‐15.0% YTD Total 5,875,790$         4,584,953$          5,136,398$         (739,392)$          ‐12.6%551,445$           12.0% Annual Total 7,455,983$         5,792,660$           Licenses & Permits by Type Year to Date through September Revenue 2023 vs. 2022 2023 vs. Budget Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 4 of 35       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 September 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  2022 2023 2023 Actual Budget Actual $ % $ % State Shared Revenue 3,083,914            3,148,782$          3,100,354            16,440$              0.5%(48,428)$             ‐1.5% Federal Grants 12,983,668         3,223,135             457,787                 (12,525,881)      ‐96.5% (2,765,348)         ‐85.8% State Grants 80,310                    924,513                 398,255                 317,945              395.9%(526,258)             ‐56.9% Local Grants 30,775                    138,363                 47,476                    16,701                 54.3%(90,887)                ‐65.7% YTD Total 16,178,667$      7,434,793$          4,003,872$         (12,174,795)$   ‐75.3% (3,430,921)$      ‐46.1% Annual Total 17,604,837$      9,199,969$           Intergovernmental by Type Revenue 2023 vs. 2022 2023 vs. Budget Year to Date through September 2022 2023 2023 Tax by Type YTD Actual YTD Budget YTD Actual$%$% Judicial Contribution 32,326$         43,754$         33,717$         1,391$           4.3%(10,037)$       ‐22.9% Crim Just ‐ Pop 27,326            18,342            28,836            1,510              5.5% 10,494           57.2% Crim Just ‐ Spec Prog 96,968            84,101            101,852         4,884              5.0% 17,751           21.1% Crim Just ‐ One Time ‐                            ‐                           44,715            44,715           N/A 44,715           100.0% State DUI 8,733               13,133            3,851               (4,882)             ‐55.9% (9,282)             ‐70.7% Marijuana Distribution 211,825         161,007         214,251         2,426              1.2% 53,244           33.1% Liquor Profits 623,247         600,044         616,444         (6,803)             ‐1.1%16,400           2.7% Liquor Excise Tax 554,388         559,209         576,333         21,945           4.0% 17,124           3.1% Fuel Tax 1,529,101     1,669,192     1,480,355     (48,746)          ‐3.2% (188,837)       ‐11.3% YTD Total 3,083,914$  3,148,782$  3,100,354$  16,440$        0.5%(48,428)$      ‐1.5% 2023 vs. 2022 2023 vs. Budget 2022 2023 2023 Actual Budget Actual $ % $ % Passport Fees 7,450                       10,719                    7,109                       (341)                        ‐4.6% (3,610)                   ‐33.7% Court Services 117,259                 22,320                    108,474                 (8,784)                   ‐7.5%86,155                 386.0% General Government Services 254                            ‐                                   77                              (177)                        ‐69.7%77                           100.0% Public Safety Services 526,308                 778,863                 482,617                 (43,691)                ‐8.3% (296,246)             ‐38.0% Development Services 2,694,985            1,774,403             1,785,479            (909,506)             ‐33.7%11,076                 0.6% Transportation Services 31,645                     ‐                                   52,458                    20,813                 65.8% 52,458                 100.0% Social Services 135,081                 192,024                 116,230                 (18,851)                ‐14.0% (75,794)                ‐39.5% Recreation/Farmer's Market/Events 1,147,951            1,058,546             1,604,863            456,913              39.8% 546,317              51.6% Interfund Services 3,872,028            5,311,707             4,650,982            778,954              20.1%(660,725)             ‐12.4% YTD Total 8,532,959$         9,148,582$          8,808,288$         275,330$           3.2%(340,293)$          ‐3.7% Annual Total 10,101,988$      11,186,962$        Year to Date through September Charges for Services by Type Revenue 2023 vs. 2022 2023 vs. Budget Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 5 of 35   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.    Recreation/Farmer’s Market/Events – The increase over prior year is largely due to a significant amount of the recreation  facilities being closed through April of 2022. 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 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, the aquatics program is $210K above the year‐to‐date budget and  the community center programs are performing $135K 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 which are based on work performed.      FINES AND PENALTIES      Photo Enforcement Program – The decrease from prior year is primarily due to a large uptick in revenue in 2022 resulting  from the city’s new collection agency as well as an increased dismissal rate in 2023.    MISCELLANEOUS REVENUES      Interest and Other Investment Earnings – Investment earnings have varied over the past couple of years as the market has  seen uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds  rate, and we may continue to see a rise in investment earnings as this 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 51% of the total cash and investments for the city in the LGIP.     Rents, Leases, and Concessions – The increase from prior year is due to higher‐than‐expected parking garage monthly rental  fees ($61K), and senior center and community center facility rentals ($65K) as these remained in limited usage in the  2022 2023 2023 Actual Budget Actual $ % $ % Civil Penalties 219,102$              229,015$              175,273$              (43,829)$             ‐20.0% (53,742)$             ‐23.5% Photo Enforcement Program 2,745,719            2,507,094             2,525,958            (219,761)             ‐8.0%18,864                 0.8% Criminal Traffic Misdemeanor Fines 22,895                    33,034                    17,592                    (5,303)                   ‐23.2% (15,441)                ‐46.7% Criminal Non‐Traffic Fines 3,461                       5,131                       2,397                       (1,064)                   ‐30.7% (2,734)                   ‐53.3% Criminal Costs 24,168                    26,854                    18,231                    (5,937)                   ‐24.6% (8,623)                   ‐32.1% Non‐Court Fines, Forfeitures and Penalties 148,733                 96,636                    109,229                 (39,504)                ‐26.6%12,593                 13.0% YTD Total 3,164,078$         2,897,764$          2,848,680$         (315,398)$          ‐10.0% (49,084)$             ‐1.7% Annual Total 4,142,205$         3,841,442$           Fines and Penalties by Type Revenue 2023 vs. 2022 2023 vs. Budget Year to Date through September 2022 2023 2023 ActualBudgetActual$%$% Interest and Other Investment Earnings 479,968$              168,028$              2,339,023$         1,859,055$      387.3% 2,170,995$      1292.0% Rents, Leases, and Concessions 1,193,284            908,972                 1,363,359            170,075              14.3% 454,387              50.0% Contributions/Donations from Private Sources 28,564                    29,134                    72,365                    43,801                 153.3% 43,231                 148.4% Other 141,042                 60,558                    260,389                 119,347              84.6% 199,831              330.0% YTD Total 1,842,858$         1,166,692$          4,035,136$         2,192,278$      119.0% 2,868,444$      245.9% Annual Total 2,914,453$         1,673,835$           Miscellaneous by Type Year to Date through September Revenue 2023 vs. 2022 2023 vs. Budget Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 6 of 35   beginning of 2022.   The amount over the budget is primarily due to parking garage fees ($100K), 200 Mill leases ($175K),  community center facility rentals ($127K) and a revocable land use permit ($50K).    Other – The increase from prior year is due to receiving opioid settlement funds which were received in December 2022  ($63K) as well as increases in utility late penalties ($52K).  The amount over the year‐to‐date budget is due to higher than  anticipated utility late penalties ($124K) and unbudgeted opioid settlement funds ($63K).    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.     Prior Period Adjustment – The decrease from prior year is due to a 2022 having a prior period adjustment for admission taxes  owed to the general fund from the golf course.       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 63 vacancies as of September 30th.    Supplies – The increase in supplies from prior year is largely due to higher prices from inflation and overall larger need due  to added personnel. Supply budgets were not increased for inflation, with the sharp increase in costs, budget will need to be  adjusted in future years.     Contracted Services ‐ The increase in contracted services over prior year largely relate to increases in SCORE (jail services)  and Valley Communications monthly fees, increase in training due to new staff and projects related to grant funded surveys  and sustainability studies. The amount under the year‐to‐date budget relates to unspent human services funding to be  spent by the end of the year and grant related projects.     2022 2023 2023 Actual Budget Actual $ % $ % Transfers from Other Funds 14,187$                 1,930,000$           ‐$                                (14,187)               0.0%(1,930,000)        0.0% Prior Period Adjustment 348,871                  ‐                                    ‐                                   (348,871)            0.0%‐                                N/A Interfund Loan Payment Received 26,960                    46,216                    33,359                    6,399                    23.7%(12,857)                ‐27.8% Insurance Recoveries 102,850                  ‐                                   18,393                    (84,457)                ‐82.1%18,393                 100.0% Sale of Capital Assets 2,000                        ‐                                    ‐                                   (2,000)                  0.0%‐                                N/A YTD Total 494,868$              1,976,216$          51,752$                 (443,116)$          ‐89.5% (1,924,464)$      ‐97.4% Annual Total (80,254)$               1,976,216$           Revenue 2023 vs. 2022 2023 vs. Budget Year to Date through September Other Financing Sources by Type General Fund Summary of Uses 2022 Year to Date through September YTD Actual YTD Budget YTD Actual $%$% Personnel 50,650,618$     59,764,066$          55,003,708$       (4,353,090)$       ‐8.6% 4,760,358$         8.0% Supplies 1,300,734           1,148,322                1,759,089             (458,355)               ‐35.2%(610,767)               ‐53.2% Contracted Services 14,684,229        18,051,335             16,431,761          (1,747,532)          ‐11.9% 1,619,574            9.0% Capital Outlay 116,926                352,433                    136,973                  (20,047)                  ‐17.1% 215,460                 61.1% Debt Service 225,309                 ‐                                 ‐                              225,309                100.0%‐                             0.0% Internal Services 15,359,862        15,368,051             15,368,055          (8,193)                      ‐0.1% (4)                                0.0% Transfers Out 5,812,895           21,630                       21,630                     5,791,265            99.6%‐                             0.0% Total Expenditures 88,150,573        94,705,838             88,721,216          (570,643)                ‐0.6% 5,984,622            6.3% Annual Total 130,113,119     138,565,951           2023 2023 vs. 2022 2023 vs. Budget Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 7 of 35   Capital Outlay – The amount under budget is primarily due to the Downtown Wayfinding project of which only $20K of the  $253K budget has been spent to date. This budget savings is partially offset with Parks and Police capital purchases of  machinery such as drones, rifles and parks equipment.    Debt Service – The decrease from prior year is due to the issuance of an interfund loan from the general fund to the  Maplewood golf course to fund the purchase of golf carts in 2022, a one‐time activity.    Transfers Out – The decrease from prior year is due to transfers approved for allocating ARPA related funds to projects  including Axon Body Cameras, Broadband Wi‐Fi upgrades and City Hall Remodel.    Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 8 of 35   DEBT SERVICE FUNDS  Debt service funds are used to account for the accumulation of resources for the payment of principal and interest related to  the City’s general obligation bond issues. YTD budgets are not prepared for debt service funds.     GENERAL GOVERNMENTAL MISCELLANEOUS DEBT FUND  The General Governmental Miscellaneous Debt Fund is the only debt service fund maintained by the city.        Investment Earnings – Investment earnings have varied over the past couple of years as the market has seen uncertainty  with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate, and we may  continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government Investment Pool  (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city  holds roughly 51% of the total cash and investments for the city in the LGIP.     Principal, Interest and Transfers In – The increase from prior year is due to a one‐time payment in 2023 for payoff of the  Fire District 40 debt. This debt was paid off early as the fire impact mitigation fund held sufficient resources to pay the debt  in full. This also resulted in a decrease in interest due to savings for additional payments that were scheduled to be made in  2023.                              2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 44,705$                39,170$                  38,319$         (6,386)$         (851)$              97.83% Investment Earnings 25,561                    ‐                                110,262         84,701          110,262          N/A TOTAL REVENUES 70,266                   39,170                    148,581         78,315          109,411          379.32% EXPENDITURES: Principal 609,547                4,453,189               2,748,189      (2,138,642)   1,705,000       61.71% Interest 712,307                1,112,501               607,063         105,244        505,438          54.57% TOTAL EXPENDITURES 1,321,854             5,565,690               3,355,252      (2,033,398)   2,210,438       60.28% 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 (640,039)               189,332                  (611,295)        28,744          (800,627)          ‐322.87% BEGINNING FUND BALANCE, Jan 1 5,218,125             5,262,665               5,262,665      44,540           ‐                        100.00% ENDING FUND BALANCE, Sep 30 4,578,086$           5,451,997$            4,651,370$   73,284$        (800,627)$      85.31% Debt Service Reserve 2,717,575             2,717,575               2,717,575       AVAILABLE FUND BALANCE 1,860,511$           2,734,422$            1,933,795$    VARIANCE FAVORABLE (UNFAVORABLE) GENERAL GOVERNMENTAL MISCELLANEOUS DEBT Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 9 of 35   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.                                               2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 355,770$              200,000$                396,753$              40,983$                196,753$              198.38% Contributions 20,000                    ‐                                10,000                   (10,000)                 10,000                   N/A Investment Earnings 4,190                      ‐                                18,806                   14,616                   18,806                   N/A TOTAL REVENUES 379,960                200,000                   425,559                45,599                   225,559                212.78% EXPENDITURES: Contracted Services 186,088                424,616                   174,848                11,240                   249,768                41.18% TOTAL EXPENDITURES 186,088                424,616                   174,848                11,240                   249,768                41.18% Transfers Out ‐                              (30,000)                     ‐                               ‐                               ‐                              N/A NET TRANSFERS ‐                              (30,000)                     ‐                               ‐                               ‐                              N/A CHANGE IN FUND BALANCE 193,872                (254,616)                 250,711                56,839                   505,327                 ‐98.47% BEGINNING FUND BALANCE, Jan 1 728,421                712,384                   712,384                (16,037)                  ‐                              97.80% ENDING FUND BALANCE, Sep 30 922,293$              457,768$                963,095$              40,802$                505,327$              104.42% VARIANCE FAVORABLE (UNFAVORABLE) HOTEL/MOTEL Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 10 of 35   Cable Communications Fund  The Cable Communications Fund accounts for funding for promotion and development of cable communications as  established by city ordinance. The main use of the fund is to support the broadcasting of City Council meetings on Channel  21.      Supplies – The decrease in supplies expenditures from prior year is due to a majority of the equipment for the council  chambers audit video equipment being purchased in 2022.      Housing & Supportive Services  In accordance with HB 1590, the City Council passed ORD 5983 authorizing an additional 0.1% sales and use tax, effective  January 1, 2021. The additional sales and use tax is restricted for housing and related services, in accordance with RCW  82.14.530.       Taxes – Taxes have exceeded prior year and are currently on track to exceed the annual budget. This tax revenue will increase  or decrease with the economy as it is a direct sales tax upon consumer purchases.    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  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 48,050$                57,674$                    41,047$                (7,003)$                 (16,627)$               71.17% Investment Earnings 3,244                      ‐                                  9,706                     6,462                     9,706                     N/A TOTAL REVENUES 51,294                   57,674                      50,753                   (541)                       (6,921)                    88.00% EXPENDITURES: Supplies 262,791                50,584                      46,230                   (216,561)               4,354                     91.39% Contracted Services 57,558                   155,502                    79,011                   21,453                   76,491                   50.81% Capital Outlay ‐                              49,500                       ‐                               ‐                              49,500                   0.00% TOTAL EXPENDITURES 320,349                255,586                    125,241                (195,108)               130,345                49.00% Transfers In ‐                               ‐                                   ‐                               ‐                               ‐                              N/A NET TRANSFERS ‐                               ‐                                   ‐                               ‐                               ‐                              N/A CHANGE IN FUND BALANCE (269,055)               (197,912)                   (74,488)                 194,567                123,424                N/A BEGINNING FUND BALANCE, Jan 1 731,245                453,147                    453,147                (278,098)                ‐                              100.00% ENDING FUND BALANCE, Sep 30 462,190$              255,235$                  378,659$              (83,531)$               123,424$              148.36% CABLE COMMUNICATIONS VARIANCE FAVORABLE (UNFAVORABLE) 2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 3,197,778$           3,500,000$              3,281,295$           83,517$                (218,705)$             93.75% Investment Earnings 19,949                    ‐                                  173,298                153,349                173,298                N/A TOTAL REVENUES 3,217,727             3,500,000                 3,454,593             236,866                (45,407)                 98.70% EXPENDITURES: Contracted Services 1,502,339             260,000                    40,500                   (1,461,839)            219,500                15.58% TOTAL EXPENDITURES 1,502,339             260,000                    40,500                   (1,461,839)            219,500                15.58% Transfers In ‐                               ‐                                   ‐                               ‐                               ‐                              N/A Transfers Out ‐                               ‐                                   ‐                               ‐                               ‐                              N/A NET TRANSFERS ‐                               ‐                                   ‐                               ‐                               ‐                              N/A CHANGE IN FUND BALANCE 1,715,388             3,240,000                 3,414,093             1,698,705             174,093                105.37% BEGINNING FUND BALANCE, Jan 1 3,171,729             6,110,390                 6,110,390             2,938,661              ‐                              100.00% ENDING FUND BALANCE, Sep 30 4,887,117$           9,350,390$              9,524,483$           4,637,366$           174,093$              101.86% HOUSING & SUPPORTIVE SERVICES VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 11 of 35   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 51% of the total cash and investments for the city in the LGIP.     Contracted Services – The decrease from prior year is due to a large payment made to the Renton Housing Authority to  develop affordable housing as part of the Sunset Gardens project.    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.       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) Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 12 of 35   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.    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.        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 3rd Quarter 2023  Page 13 of 35   Police CSAM Seizure Fund  The Police CSAM Seizure Fund was established in the 2nd quarter of 2020 for the purpose of providing transparency in the  accounting for assets seized by Police in accordance with RCW 9A.88.150, previously accounted for within the General Fund.  These seizure funds are restricted to the exclusive use of enforcing the provisions of chapter 9A.88 RCW, Indecent Exposure‐ Prostitution, or chapter 9.68A RCW, Sexual Exploitation of Children.        Fire Impact Mitigation Fund  This fund accounts for fire impact fees collected from developers as authorized under RCW 82.02.050‐.110. These fees are  used to offset the cost of system improvements necessary to serve the new development. Impact fees are held in this fund  and subsequently transferred to the debt service fund to support the debt service on fire station 13. Once the debt on the  fire station is repaid, the remaining collections will be disbursed to the Renton Regional Fire Authority for use on qualifying  capital projects.          Charges for Services and Contracted Services – The decrease is primarily due to decreased impact fees as large one‐time  project payments were received in 2022 for the Solera project. These fees collected are subsequently transferred to the  Renton Regional Fire Authority to fund capital projects.    Transfers Out – The increase in transfer out represents the final debt payoff approved for the Fire Station 13  intergovernmental debt with King County.   2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Fines and penalties 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 3rd Quarter 2023  Page 14 of 35     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 3rd Quarter 2023  Page 15 of 35   CAPITAL PROJECT FUNDS  Capital project funds are used to account for the acquisition and construction of major capital facilities and equipment. YTD  budgets are not prepared for capital project funds. Project budgets are adopted when funding is secured, and balances are  carried forward each year until they are either 1) fully spent or 2) reallocated to another project through the budget  adjustment process. Detailed explanations will be provided for material differences between prior year and or budgeted  amounts.      Community Services Impact Mitigation Fund   This fund accounts for park impact fees collected from developers as authorized under RCW 82.02.050‐.110. These fees are  used to help offset the cost of system improvements necessary to service the new development. Impact fees are held in this  fund and subsequently transferred to the Municipal Facilities CIP Fund when qualifying capital projects are budgeted.        Charges for Services – The decrease in charges for services is primarily due to decreased impact fees as large one‐time project  payments were received in 2022 for the King County administration building and Solera projects.     Transfers Out – The budgeted transfers out represent transfers to parks capital projects including May Creek Park, Miser  Property Acquisition, Cleveland Richardson, and Talbot Sport Courts.    2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 1,380,786$           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 3rd Quarter 2023  Page 16 of 35   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.     Transfers Out – The budgeted transfers out represent transfers of transportation mitigation funds to capital projects including  Park Avenue Extension and Rainier Phase 4.      2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 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 3rd Quarter 2023  Page 17 of 35   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.     Transfers Out – The budgeted transfers out represent transfers of REET funds to capital projects including Family First  Community Center, and Park Avenue Maintenance Facility.    REET 2 Fund  This fund was established in the 2nd quarter of 2020 to account for the second quarter percent of real estate excise tax (REET)  levied in accordance with RCW 82.46.035. The tax may be used for eligible capital projects, as defined in RCW.82.46.035(5),  that are included in the capital facilities element of the city’s comprehensive plan. REET 2 tax revenues are held in this fund  and subsequently transferred to the appropriate capital project fund when qualifying projects are budgeted.        2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 2,885,167$           2,300,000$              1,761,020$           (1,124,147)$         (538,980)$             76.57% Investment Earnings 31,446                    ‐                                 85,246                   53,800                   85,246                   N/A TOTAL REVENUES 2,916,613             2,300,000                1,846,266             (1,070,347)            (453,734)               80.27% 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 2,916,613             (1,200,000)               1,846,266             (1,070,347)            3,046,266              ‐153.86% BEGINNING FUND BALANCE, Jan 1 4,508,117             3,049,711                3,049,711             (1,458,406)             ‐                              100.00% ENDING FUND BALANCE, Sep 30 7,424,730$           1,849,711$              4,895,977$           (2,528,753)$         3,046,266$           264.69% 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 3rd Quarter 2023  Page 18 of 35   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.    Transfers Out ‐ The budgeted transfers out represent transfers of REET funds to provide funding for Debt Service,  Oakesdale Avenue Project, Sidewalk Rehabilitation Projects, Houser Way Bridge, and SW 43rd Rehabilitation.     Municipal Facilities CIP Fund  This fund accounts for general governmental facility construction, improvement, and renovation; property acquisitions for  parks and city space needs; parks development and equipment; and major maintenance of existing general governmental  assets. Transportation capital improvements are accounted for in a separate fund.         Grants/intergovernmental – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is  budgeted at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires. The increase from prior year is  largely due to receiving grant funds for work performed on the Coulon North Water Walk project ($1.6M).     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 51% 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, 7th floor remodel, and City Hall  Lobby Remodel. The increase from prior year is for 7th floor remodel expenditures through September 2023 totalling $549K.     2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 289,128$              4,860,872$            2,285,266$           1,996,138$           (2,575,606)$         47.01% Charges for services 4,700                      ‐                               21,245                   16,545                   21,245                   N/A Investment Earnings 90,864                    ‐                               431,939                341,075                431,939                N/A TOTAL REVENUES 1,226,846             4,860,872              2,741,506             1,514,660             (2,119,366)            56.40% EXPENDITURES: Personnel 323,093                15,489                    37,997                   (285,096)               (22,508)                 245.32% Contracted Services 137,361                8,767,247              732,149                594,788                8,035,098             8.35% Capital Outlay 2,961,627             26,147,605            12,523,278           9,561,651             13,624,327           47.89% TOTAL EXPENDITURES 3,422,081             34,930,341            13,293,424           9,871,343             21,636,917           38.06% Transfers In 3,000,000             5,580,379               ‐                              (3,000,000)            (5,580,379)            0.00% Transfers Out (56,518)                 (100,000)                (100,000)               (43,482)                  ‐                              N/A NET TRANSFERS 2,943,482             5,480,379              (100,000)               (2,956,518)            (5,580,379)             ‐1.82% CHANGE IN FUND BALANCE 748,247                (24,589,090)          (10,651,918)         (11,400,165)         13,937,172           43.32% BEGINNING FUND BALANCE, Jan 1 16,824,783           24,671,384            24,671,384           7,846,601              ‐                              100.00% ENDING FUND BALANCE, Sep 30 17,573,030$        82,294$                 14,019,466$        (3,553,564)$         13,937,172$        17035.83% MUNICIPAL FACILITIES CIP VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 19 of 35   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 ($3.5M), Kiwanis Park ($2M), Philip Arnold Park ($4.3M), and  the Miser Property Acquisition ($1M). It is anticipated that several of the larger parks projects will be reaching final stages  in fall of 2023.     Transfers In – The decrease in transfers in is due to a $3M transfer being made in 2022 for the City Hall Lobby Remodel  project.    Capital Improvement Fund  This fund accounts for the city’s transportation capital projects. Capital projects are budgeted in their entirety at the inception  of the project; funds are spent as the project progresses and may span over multiple years.        Grants/Intergovernmental– Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is  budgeted at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires. The decrease from prior year is  primarily due to four large projects receiving grant funding in 2022 including Rainier Phase 4, Duvall Avenue, Lake  Washington Loop Trail, and Williams & Wells totalling $7.7M through September 2022.      Charges of Services – The increase from prior year primarily relates to sidewalk/street mitigation fee in lieu payments which  were historically recorded in the transportation impact mitigation fund ($90K). These revenues were separated from the  transportation impact mitigation fund as there are separate restrictions on these two revenue streams and this change will  streamline the accounting.    Contributions – The amount over prior year is due to the contribution from a WSDOT contractor for the Gateway  Enhancement Project received in 2023.    Investment Earnings – Increase over prior year is primarily due to investment earnings. Investment earnings have varied over  the past couple of years as the market has seen uncertainty with the pandemic and now concerns of recession. This revenue  is highly influenced by the federal funds rate, and we may continue to see a rise in investment earnings as this is adjusted.  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 8,511,682$           31,482,849$        6,102,439$           (2,409,243)$         (25,380,410)$       19.38% Charges for services ‐                               ‐                              100,087                100,087                100,087                N/A Fines and penalties (107)                        ‐                               ‐                              107                         ‐                              N/A Contributions ‐                              200,000                211,489                211,489                11,489                   105.74% Investment Earnings 46,418                    ‐                              295,436                249,018                295,436                N/A TOTAL REVENUES 8,557,993             31,682,849           6,709,451             (1,848,542)            (24,973,398)         21.18% EXPENDITURES: Personnel 36,171                   26,080                   24,695                   (11,476)                 1,385                     94.69% Supplies 90,430                   30,000                   64,025                   (26,405)                 (34,025)                 213.42% Contracted Services 103,288                534,355                102,036                (1,252)                    432,319                19.10% Capital Outlay 11,098,064           52,600,207           10,803,319           (294,745)               41,796,888           20.54% Internal Services 42,000                    ‐                              39,750                   (2,250)                    (39,750)                 N/A TOTAL EXPENDITURES 11,369,953           53,190,642           11,033,825           (336,128)               42,156,817           20.74% 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 (2,811,960)            (11,477,896)         (4,324,374)            (1,512,414)            7,153,522             N/A BEGINNING FUND BALANCE, Jan 1 10,868,853           12,561,975           12,561,975           1,693,122              ‐                              100.00% ENDING FUND BALANCE, Sep 30 8,056,893$           1,084,079$           8,237,601$           180,708$              7,153,522$           759.87% CAPITAL IMPROVEMENT VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 20 of 35   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 51% 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 Lake Washington Loop Trail ($751K), Williams & Wells ($713K), Houser Way  Intersection and Pedestrian Improvement ($579K), and Duvall Ave project ($3.7M) all of which were significantly completed  in 2022.     Family First Center Fund  This fund is used to account for the construction of the new Family First Center. Funds accumulated for the construction of  the Family First Center are maintained in the fund balance until such time that Council authorizes their use through the  approval of contracts and additional project budget is established through the budget adjustment process.        Grants/Intergovernmental – The decrease from year is because this project completed a significant portion of the  construction work last year and recognized most of the grant revenue in 2022.     Contributions – The decrease from last year is due to timing of contributions of which many were stipulated on completing  different phases of the project. In 2023, the majority of the remaining Healthpoint contribution was received.     Capital Outlay – Decrease from prior year is due to the project timeline; the project is nearing completion and opened in  June to the public. Work will continue to be ongoing as smaller items on the project continue to be completed.         2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 1,510,000$           20,000$                20,000$                (1,490,000)$          ‐$                            100.00% Contributions 5,017,222             3,602,152             3,027,480             (1,989,742)            (574,672)               84.05% Investment Earnings 45,804                    ‐                              61,098                   15,294                   61,098                   N/A TOTAL REVENUES 6,573,026             3,622,152             3,108,578             (3,464,448)            (513,574)               85.82% EXPENDITURES: Contracted Services 39,961                    ‐                              4,089                     (35,872)                 (4,089)                    N/A Capital Outlay 7,446,695             2,833,827             2,805,378             (4,641,317)            28,449                   99.00% TOTAL EXPENDITURES 7,486,656             2,833,827             2,809,467             (4,677,189)            24,360                   99.14% Transfers In 56,518                   1,000,000              ‐                              (56,518)                 (1,000,000)            0.00% Transfers Out ‐                              (1,000,000)             ‐                               ‐                              (1,000,000)            N/A NET TRANSFERS 56,518                    ‐                               ‐                              (56,518)                  ‐                              N/A CHANGE IN FUND BALANCE (857,112)               788,325                299,111                1,156,223             (489,214)               37.94% BEGINNING FUND BALANCE, Jan 1 8,238,935             2,795,295             2,795,295             (5,443,640)             ‐                              100.00% ENDING FUND BALANCE, Sep 30 7,381,823$           3,583,620$           3,094,406$           (4,287,417)$         (489,214)$             86.35% FAMILY FIRST CENTER VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 21 of 35   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 51% 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 57,529$           171,711$                149,837$         92,308$           (21,874)$          87.26% Charges for services 2,544,427        4,355,432               4,517,916        1,973,489        162,484           103.73% Interest and other misc 110,771           3,857                       224,740           113,969           220,883           5826.81% TOTAL REVENUES 2,712,727        4,531,000               4,892,493        2,179,766        361,493           107.98% EXPENSES: Personnel 822,160           1,457,417               840,178           (18,018)            617,239           57.65% Supplies 61,068              47,630                    59,735              1,333                (12,105)            125.41% Contracted Services 542,887           490,874                  419,871           123,016           71,003              85.54% Internal Services 341,856           445,696                  334,272           7,584                111,424           75.00% TOTAL OPERATING EXPENSES 1,767,971        2,441,617               1,654,056        113,915           787,561           67.74% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 944,756           2,089,383               3,238,437        2,293,681        1,149,054        154.99% TOTAL DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY 130,327           7,104,413               855,241           (724,914)          6,249,172        12.04% TRANSFERS OUT ‐                          ‐                                 ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                          ‐                                 ‐                          ‐                          ‐                         N/A CHANGE IN FUND BALANCE 814,429           (5,015,030)             2,383,196        1,568,767        7,398,226        N/A BEGINNING FUND BALANCE, Jan 1 7,741,751        8,925,690               8,925,690        1,183,939         ‐                         100.00% ENDING FUND BALANCE, Sep 30 8,556,180$      3,910,660$            11,308,886$   2,752,706$      7,398,226$      289.18% Operating Reserve 216,784           244,162                  244,162            AVAILABLE FUND BALANCE 8,339,396$      3,666,498$            11,064,724$    VARIANCE AIRPORT Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 22 of 35   Contracted Services – The decrease from prior year is primarily due to the Airport Master Plan being completed in 2022  which was around $90K.    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 $2.3M for Airport Office Rehabilitation,  $775K for the Runway Safety Area, and $1.8M for Taxiway Alpha Rehabilitation which has started planning but construction  is anticipated to start in 2024. Also, currently unspent budget for snow removal equipment of $375K.    Solid Waste Fund  This fund accounts for revenues and expenses for administration and operating of solid waste, recycling, and yard waste  collection services for the city.         Grants/Intergovernmental – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is budgeted  at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires. The increase from prior year relates  to a reimbursement received early in 2023 for 2022 expenditures $126K.     Charges for Services – The increase from prior year is due to increased rates for 2023 which went up 7.8% from 2022.    Contracted Services‐ Contracted services will fluctuate with the charges for services as this line item includes payment to the  city’s garbage service provider and King County dump fees.  The increase from prior year is primarily due to increased charges  related to the fee increase for 2023 of 7.8%.  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 34,783$           360,168$                165,834$         131,051$         (194,334)$        46.04% Charges for services 16,761,892      25,168,583            18,545,112      1,783,220        (6,623,471)       73.68% Interest and other misc 21,283              5,000                       81,263              59,980              76,263              1625.26% TOTAL REVENUES 16,817,958      25,533,751            18,792,209      1,974,251        (6,741,542)       73.60% EXPENSES: Personnel 349,917           707,752                  434,517           (84,600)            273,235           61.39% Supplies 7,471                45,301                    33,144              (25,673)            12,157              73.16% Contracted Services 15,712,562      24,615,900            16,846,304      (1,133,742)       7,769,596        68.44% Internal Services 293,728           527,016                  395,262           (101,534)          131,754           75.00% TOTAL OPERATING EXPENSES 16,363,678      25,895,969            17,709,227      (1,345,549)       8,186,742        68.39% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 454,280           (362,218)                 1,082,982        628,702           1,445,200        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 454,280           (446,493)                 1,082,982        628,702           1,529,475        N/A BEGINNING FUND BALANCE, Jan 1 3,392,243        3,951,191               3,951,191        558,948            ‐                         100.00% ENDING FUND BALANCE, Sep 30 3,846,523$      3,504,698$            5,034,173$      1,187,650$      1,529,475$      143.64% Operating Reserve 400,000           400,000                  400,000            AVAILABLE FUND BALANCE 3,446,523$      3,104,698$            4,634,173$       SOLID WASTE VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 23 of 35   Internal Services – The increase from prior year is related to internal charges for general fund provided support services in  public works and sustainability division provided to the solid waste enterprise fund.      Golf Course Fund  This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and  maintenance of the Maplewood Golf Course.        Charges for services – The increase from prior year is primarily due to an increase in the number of rounds completed  through September 2023.     Interest and Other Misc. – The increase from prior year is due to recognizing an interfund loan payment of $225K in 2022  for the purchase of the new golf cart fleet.     Personnel – The increase in personnel from prior year is primarily due to cost of living increases for 2023 which were 4.5%.                2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 2,263,344$      2,546,155$            2,485,933$      222,589$         (60,222)$          97.63% Rents, leases, and misc fees 404,306           527,600                  477,327           73,021              (50,273)            90.47% Interest and other misc (112,734)          1,370                       47,020              159,754           45,650              3432.12% TOTAL REVENUES 2,554,916        3,075,125               3,010,280        455,364           (64,845)            97.89% EXPENSES: Personnel 1,254,141        1,787,276               1,361,251        (107,110)          426,025           76.16% Supplies 294,364           312,500                  334,996           (40,632)            (22,496)            107.20% Contracted Services 103,513           226,350                  129,368           (25,855)            96,982              57.15% Internal Services 345,495           468,333                  351,250           (5,755)               117,083           75.00% TOTAL OPERATING EXPENSES 1,997,513        2,794,459               2,176,865        (179,352)          617,594           77.90% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 557,403           280,666                  833,415           276,012           552,749           296.94% DEBT SERVICE: Principal 25,709              44,535                    33,359              (7,650)               11,176              74.91% Interest 1,250                1,682                       1,303                (53)                    379                   77.47% TOTAL DEBT SERVICE 26,959              46,217                    34,662              (7,703)               11,555              75.00% CAPITAL OUTLAY 386,621           583,598                  326,882           59,739              256,716           56.01% NET TRANSFERS ‐                          ‐                                 ‐                          ‐                          ‐                         N/A CHANGE IN FUND BALANCE 143,823           (349,149)                 471,871           328,048           821,020           N/A BEGINNING FUND BALANCE, Jan 1 1,222,897        1,609,927               1,609,927        387,030            ‐                         100.00% ENDING FUND BALANCE, Sep 30 1,366,720$      1,260,778$            2,081,798$      715,078$         821,020$         165.12% Operating Reserve 641,500           787,490                  787,490            AVAILABLE FUND BALANCE 725,220$         473,288$                1,294,308$       GOLF COURSE VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 24 of 35     Water Utility Fund  This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and  maintenance of the city’s water utility.        Grants/Intergovernmental – Federal/State/Local grant revenue varies significantly from year‐to‐year based on volume of  grant awards procured, timing of grant expenditures, and reimbursement of related expenditures. Grant revenue is budgeted  at 100% of award at the time the grant agreement is executed, sometimes resulting in a budget variance due to  reimbursement of grant expenditures occurring in a future year. Any grant revenue not received in award year is carried  forward each year until the grant funds are fully received or the grant agreement expires. The increase from prior year is due  to the Sunset Gardens Department of Commerce Grant ($846K).    Charges for Services – The increase from prior year is due to increased consumption which through September is around 9%  higher than prior year. Water charges tend to see a significant increase during the summer months as typically irrigation use  is much higher.     Interest and Other Misc. – Increase over prior year is primarily due to investment earnings. Investment earnings have varied  over the past couple of years as the market has seen uncertainty with the pandemic and now concerns of recession. This  revenue is highly influenced by the federal funds rate, and we may continue to see a rise in investment earnings as this is  adjusted. Investments within the Local Government Investment Pool (LGIP) maintain a high level of liquidity and will closely  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental ‐$                       1,472,037$            846,705$         846,705$         (625,332)$        57.52% Charges for services 13,725,327      19,133,877            14,725,983      1,000,656        (4,407,894)       76.96% Rents, leases, and misc fees 183,986           136,591                  214,925           30,939              78,334              157.35% Interest and other misc 1,197,185        47,000                    1,565,122        367,937           1,518,122        3330.05% TOTAL REVENUES 15,106,498      20,789,505            17,352,735      2,246,237        (3,436,770)       83.47% EXPENSES: Personnel 3,298,960        5,188,033               3,455,647        (156,687)          1,732,386        66.61% Supplies 802,561           886,189                  794,874           7,687                91,315              89.70% Contracted Services 2,482,696        3,527,786               2,519,895        (37,199)            1,007,891        71.43% Internal Services 2,107,536        2,940,571               2,205,428        (97,892)            735,143           75.00% TOTAL OPERATING EXPENSES 8,691,753        12,542,579            8,975,844        (284,091)          3,566,735        71.56% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 6,414,745        8,246,926               8,376,891        1,962,146        129,965           101.58% DEBT SERVICE: Principal 315,517           1,504,997               272,647           42,870              1,232,350        18.12% Interest 91,087              164,913                  83,686              7,401                81,227              50.75% TOTAL DEBT SERVICE 406,604           1,669,910               356,333           50,271              1,313,577        21.34% CAPITAL OUTLAY 2,465,513        38,127,479            3,622,076        (1,156,563)       34,505,403      9.50% TRANSFERS OUT (6,270)               (40,000)                   (861)                  (5,409)               (39,139)            N/A NET TRANSFERS (6,270)               (40,000)                   (861)                  5,409                39,139              N/A CHANGE IN FUND BALANCE 3,536,358        (31,590,463)           4,397,621        861,263           35,988,084      N/A BEGINNING FUND BALANCE, Jan 1 43,849,867      48,208,077            48,208,077      4,358,210         ‐                         100.00% ENDING FUND BALANCE, Sep 30 47,386,225$   16,617,614$          52,605,698$   5,219,473$      35,988,084$   316.57% 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 44,367,569$   13,516,804$          49,504,888$    WATER UTILITY VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 25 of 35   track with the federal funds rate as it decreases or increases; the city holds roughly 51% of the total cash and investments for  the city in the LGIP.    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 which total over $2M through September 2023.     Wastewater Utility Fund  This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and  maintenance of the city’s wastewater utility.        Charges for Services – The increase from prior year is due to the rates for wastewater increasing 3% from 2022. In addition,  consumption in 2023 has been slightly above prior year.    Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen uncertainty  with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate, and we may  continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government Investment Pool  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 65,195$           62,734$                  46,775$           (18,420)$          (15,959)$          74.56% Charges for services 8,772,943        11,928,231            9,122,125        349,182           (2,806,106)       76.48% Fines and penalties 56                       ‐                                 ‐                         (56)                     ‐                         N/A Interest and other misc 683,567           74,000                    973,299           289,732           899,299           1315.27% TOTAL REVENUES 9,521,761        12,064,965            10,142,199      620,438           (1,922,766)       84.06% EXPENSES: Personnel 1,770,351        3,071,964               1,853,164        (82,813)            1,218,800        60.33% Supplies 43,729              74,441                    118,669           (74,940)            (44,228)            159.41% Contracted Services 1,746,376        2,512,265               1,807,016        (60,640)            705,249           71.93% Internal Services 1,483,261        1,999,188               1,499,391        (16,130)            499,797           75.00% TOTAL OPERATING EXPENSES 5,043,717        7,657,858               5,278,240        (234,523)          2,379,618        68.93% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 4,478,044        4,407,107               4,863,959        385,915           456,852           110.37% DEBT SERVICE: Principal ‐                         588,350                   ‐                          ‐                         588,350           0.00% Interest 39,657              73,449                    36,645              3,012                36,804              49.89% TOTAL DEBT SERVICE 39,657              661,799                  36,645              3,012                625,154           5.54% CAPITAL OUTLAY 2,831,892        17,103,445            1,482,583        1,349,309        15,620,862      8.67% TRANSFERS IN ‐                          ‐                                 ‐                          ‐                          ‐                         N/A TRANSFERS OUT (1,027)               (22,000)                    ‐                         (1,027)               (22,000)            N/A NET TRANSFERS (1,027)               (22,000)                    ‐                         1,027                22,000              N/A CHANGE IN FUND BALANCE 1,605,468        (13,380,137)           3,344,731        1,739,263        16,724,868      N/A BEGINNING FUND BALANCE, Jan 1 20,788,687      22,850,871            22,850,871      2,062,184         ‐                         100.00% ENDING FUND BALANCE, Sep 30 22,394,155$   9,470,734$            26,195,602$   3,801,447$      16,724,868$   276.60% Restricted for Debt Service 661,227           661,227                  661,227            Operating Reserve 913,756           975,361                  975,361            AVAILABLE FUND BALANCE 20,819,172$   7,834,146$            24,559,014$    WASTEWATER UTILITY VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 26 of 35   (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 51% of the total cash and investments for the city in the LGIP.    Supplies – The supplies budget is currently overspent due to a few different factors, including increased maintenance  supplies costs, one time purchases of safety equipment including gas monitors and rescue winch, and increased asphalt  purchases for wastewater repair projects.    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 the rate went up 5.75% in 2023.     Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen uncertainty  with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate, and we may  continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government Investment Pool  (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or increases; the city  holds roughly 51% of the total cash and investments for the city in the LGIP.    Contracted Services – The increase from prior year relates to the increase in King County fees and the timing of payments to  King County. Payments were properly corrected in 2023 to reflect in the appropriate month for which they relate to, in 2022  only 8 months were reflected through September.      2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 14,594,549$   19,358,929$          15,358,840$   764,291$         (4,000,089)$    79.34% Interest and other misc 28,258               ‐                                139,287           111,029           139,287           N/A TOTAL REVENUES 14,622,807      19,358,929            15,498,127      875,320           (3,860,802)       80.06% EXPENSES: Contracted Services 12,272,929      20,173,811            15,214,987      (2,942,058)       4,958,824        75.42% TOTAL OPERATING EXPENSES 12,272,929      20,173,811            15,214,987      (2,942,058)       4,958,824        75.42% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 2,349,878        (814,882)                 283,140           (2,066,738)       1,098,022        N/A TOTAL DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY ‐                          ‐                                 ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                          ‐                                 ‐                          ‐                          ‐                         N/A CHANGE IN FUND BALANCE 2,349,878        (814,882)                 283,140           (2,066,738)       1,098,022        N/A BEGINNING FUND BALANCE, Jan 1 3,764,012        6,237,142               6,237,142        2,473,130         ‐                         100.00% ENDING FUND BALANCE, Sep 30 6,113,890$      5,422,260$            6,520,282$      406,392$         1,098,022$      120.25% Operating Reserve 380,000           380,000                  380,000            AVAILABLE FUND BALANCE 5,733,890$      5,042,260$            6,140,282$       KING COUNTY METRO VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 27 of 35   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.     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  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 24,084$           51,217$                  17,250$           (6,834)$            (33,967)$          33.68% Grants / intergovernmental 1,114,140        12,994,864            1,529,786        415,646           (11,465,078)    11.77% Charges for services 9,480,563        13,122,100            10,079,777      599,214           (3,042,323)       76.82% Interest and other misc 1,498,102        1,377,519               1,614,839        116,737           237,320           117.23% TOTAL REVENUES 12,116,889      27,545,700            13,241,652      1,124,763        (14,304,048)    48.07% EXPENSES: Personnel 2,860,523        4,575,050               2,951,847        (91,324)            1,623,203        64.52% Supplies 61,831              174,650                  95,964              (34,133)            78,686              54.95% Contracted Services 1,403,922        4,625,819               1,292,534        111,388           3,333,285        27.94% Internal Services 2,171,265        2,989,720               2,242,290        (71,025)            747,430           75.00% TOTAL OPERATING EXPENSES 6,497,541        12,365,239            6,582,635        (85,094)            5,782,604        53.24% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 5,619,348        15,180,461            6,659,017        1,039,669        (8,521,444)       43.87% DEBT SERVICE: Principal ‐                         664,300                   ‐                          ‐                         664,300           0.00% Interest 48,178              90,517                    45,222              2,956                45,295              49.96% TOTAL DEBT SERVICE 48,178              754,817                  45,222              2,956                709,595           5.99% CAPITAL OUTLAY 3,092,113        28,534,294            1,297,578        1,794,535        27,236,716      4.55% Transfers In ‐                          ‐                                 ‐                          ‐                          ‐                         N/A Transfers Out (3,975)                ‐                                 ‐                         (3,975)                ‐                         N/A NET TRANSFERS (3,975)                ‐                                 ‐                         3,975                 ‐                         N/A CHANGE IN FUND BALANCE 2,475,082        (14,108,650)           5,316,217        2,841,135        19,424,867      N/A BEGINNING FUND BALANCE, Jan 1 21,682,758      28,314,755            28,314,755      6,631,997         ‐                         100.00% Prior Period Adjustment ‐                          ‐                                 ‐                          ‐                          ‐                         N/A BEGINNING FUND BALANCE, Jan 1 ‐ restated 21,682,758      28,314,755            28,314,755      6,631,997         ‐                         100.00% ENDING FUND BALANCE, Sep 30 24,157,840$   14,206,105$          33,630,972$   9,473,132$      19,424,867$   236.74% Restricted for Debt Service 754,868           754,868                  754,868            Operating Reserve 1,109,340        1,245,213               1,245,213         AVAILABLE FUND BALANCE 22,293,632$   12,206,024$          31,630,891$    SURFACE WATER UTILITY VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 28 of 35   (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 51% 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 decreases primarily were due to the following projects: Madsen Creek Improvement, Lower  Cedar River Flood Control, and Storm Water Facility Retrofit Study.    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 3rd Quarter 2023  Page 29 of 35   INTERNAL SERVICE FUNDS  Internal service funds are used to account for the goods and services furnished by one city department to other city  departments on a cost reimbursement basis. YTD budgets are not prepared for Internal Service Funds.    Equipment Rental Fund  This fund accounts for revenues and expenses for administration, purchase, and maintenance of the city’s vehicle and  equipment fleet services. Departments pay in monthly amounts for maintenance and operations. Replacement reserves are  paid monthly over the estimated useful lives of each individual vehicle or piece of equipment. These reserves are accumulated  in fund balance so that they are available to fund the replacement of the vehicle/equipment when the time comes.   Interdepartmental Services – The increase from prior year is primarily related to increased maintenance and operating  expenditures budgeted in 2023 which include budgeted recovery for repair, maintenance, personnel and fuel.    Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen  uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate,  and we may continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government  Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or  increases; the city holds roughly 51% 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.     2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 81,823$            ‐$                             51,539$           (30,284)$          51,539$           N/A Interdepartmental services 4,783,665        6,435,263               4,926,880        143,215           (1,508,383)       76.56% Interest and other misc 81,293              12,000                    337,443           256,150           325,443           2812.03% TOTAL REVENUES 4,946,781        6,447,263               5,315,862        369,081           (1,131,401)       82.45% EXPENSES: Personnel 823,933           1,317,447               843,117           (19,184)            474,330           64.00% Supplies 1,235,208        1,531,153               1,264,765        (29,557)            266,388           82.60% Contracted Services 271,256           133,165                  291,900           (20,644)            (158,735)          219.20% Internal Services 35,724              131,363                  98,522              (62,798)            32,841              75.00% TOTAL OPERATING EXPENSES 2,366,121        3,113,128               2,498,304        (132,183)          614,824           80.25% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 2,580,660        3,334,135               2,817,558        236,898           (516,577)          84.51% TOTAL DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY 385,294           6,699,462               2,158,516        (1,773,222)       4,540,946        32.22% 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 2,195,366        73,373                    659,042           (1,536,324)       585,669           898.21% BEGINNING FUND BALANCE, Jan 1 10,125,169      13,277,635            13,277,635      3,152,466         ‐                         100.00% ENDING FUND BALANCE, Sep 30 12,320,535$   13,351,008$          13,936,677$   1,616,142$      585,669$         104.39% Operating Reserves 13,351,008$          13,351,008$    AVAILABLE FUND BALANCE 12,320,535$    ‐$                             585,669$          EQUIPMENT RENTAL VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 30 of 35   Capital Outlay – The increase from prior year is due to an increase in vehicle purchases due to major supply chain issues in  prior year that delayed purchases and at times made it challenging to order the specific vehicles needed. The amount under  budget is due to not yet replacing all budgeted vehicles for the year. Vehicle replacement varies each year based on the  condition and usage of vehicles as well as the availability of suitable replacement vehicles to purchase.     Insurance Fund  This fund accounts for the administration and operation of the city’s self‐insurance programs for property losses, liability,  workers’ compensation, and unemployment compensation. Expenses are paid by the Insurance Fund and rates are charged  to departments based on their claims history over the preceding five years and coverage requirements.        Interdepartmental Services – The increase over prior year is due to additional charge outs to city departments for additional  anticipated claims costs and increased insurance premiums which have risen significantly in the last several years.    Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen  uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate,  and we may continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government  Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or  increases; the city holds roughly 51% of the total cash and investments for the city in the LGIP.    Personnel – Increase from prior year is due to cost‐of‐living adjustments in 2023, an additional employee health and safety  coordinator position (started in May 2022),  and the series promotion of personnel within the department.          2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 3,019,072$      4,838,982$            3,506,247$      487,175$         (1,332,735)$    72.46% Interest and other misc 249,331           22,000                    722,297           472,966           700,297           3283.17% TOTAL REVENUES 3,268,403        4,860,982               4,228,544        960,141           (632,438)          86.99% EXPENSES: Personnel 790,793           2,184,056               1,063,585        (272,792)          1,120,471        48.70% Supplies 46                      6,956                        ‐                         46                      6,956                0.00% Contracted Services 2,517,552        4,214,863               2,579,996        (62,444)            1,634,867        61.21% TOTAL OPERATING EXPENSES 3,308,391        6,405,875               3,643,581        (335,190)          2,762,294        56.88% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS (39,988)            (1,544,893)             584,963           624,951           2,129,856        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 (51,420)            (952,868)                 (54,366)            2,946                (898,502)          N/A NET TRANSFERS 101,352           (816,522)                 (54,366)            (155,718)          762,156           N/A CHANGE IN FUND BALANCE 61,364              (2,361,415)             530,597           469,233           2,892,012        N/A BEGINNING FUND BALANCE, Jan 1 20,494,538      23,221,020            23,221,020      2,726,482         ‐                         100.00% ENDING FUND BALANCE, Sep 30 20,555,902$   20,859,605$          23,751,617$   3,195,715$      2,892,012$      113.86% Operating Reserves 13,952,413      16,897,915            16,897,915       AVAILABLE FUND BALANCE 6,603,489$      3,961,690$            6,853,702$       INSURANCE VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 31 of 35   Information Technology Fund  This fund accounts for the administration, purchase, and operation of the city’s information technology systems, including  computer hardware and software, network servers and infrastructure, phone systems, and cell phones. Expenses are paid by  the Information Technology Fund and rates are charged to departments based on use.       Interdepartmental Services – The decrease from prior year is primarily related to a decrease in charges to departments for  the replacement reserve of the city’s ERP system which was budgeted and fully recovered in 2022.     Interest and Other Misc. – Investment earnings have varied over the past couple of years as the market has seen  uncertainty with the pandemic and now concerns of recession. This revenue is highly influenced by the federal funds rate,  and we may continue to see a rise in investment earnings as this is adjusted. Investments within the Local Government  Investment Pool (LGIP) maintain a high level of liquidity and will closely track with the federal funds rate as it decreases or  increases; the city holds roughly 51% of the total cash and investments for the city in the LGIP.    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 IT  ticketing software ($48K), IT detection and response software ($110K), NeoGov software ($58K), and the IT Strategic Plan  contract ($119K).    Capital Outlay –The increase in capital outlay over prior year is due to the Disaster Recovery project $697K, as well as IT  upgrades at the Renton Community Center 108K.       2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 202,395$         150,000$                164,862$         (37,533)$          14,862$           109.91% Interdepartmental services 6,846,561        7,355,590               5,516,696        (1,329,865)       (1,838,894)       75.00% Interest and other misc 26,169              7,000                       184,842           158,673           177,842           2640.60% TOTAL REVENUES 7,075,125        7,512,590               5,866,400        (1,208,725)       (1,646,190)       78.09% EXPENSES: Personnel 2,365,137        3,873,557               2,453,861        (88,724)            1,419,696        63.35% Supplies 985,050           1,143,289               343,444           641,606           799,845           30.04% Contracted Services 1,990,921        3,370,380               2,494,590        (503,669)          875,790           74.02% Internal Services ‐                         6,537                       4,903                (4,903)               1,634                75.00% TOTAL OPERATING EXPENSES 5,341,108        8,393,763               5,296,798        44,310              3,096,965        63.10% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 1,734,017        (881,173)                 569,602           (1,164,415)       1,450,775        N/A TOTAL DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY 109,894           5,568,965               976,868           (866,974)          4,592,097        17.54% TRANSFERS IN 2,086,034        1,317,495               76,858              (2,009,176)       (1,240,637)       5.83% NET TRANSFERS 2,086,034        1,317,495               76,858              (2,009,176)       (1,240,637)       5.83% CHANGE IN FUND BALANCE 3,710,157        (5,132,643)             (330,408)          (4,040,565)       4,802,235        N/A BEGINNING FUND BALANCE, Jan 1 3,653,455        9,021,343               9,021,343        5,367,888         ‐                         100.00% ENDING FUND BALANCE, Sep 30 7,363,612$      3,888,700$            8,690,935$      1,327,323$      4,802,235$      223.49% Operating Reserves 2,326,091$            2,326,091$       AVAILABLE FUND BALANCE 7,363,612$      1,562,609$            6,695,252$       INFORMATION TECHNOLOGY VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 32 of 35     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.     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 ($66K), roof and gutter cleaning ($90K), 1st floor carpet replacement ($13K), North Highlands boiler replacement  ($146K), and replacement of blinds at the senior center ($13K).      2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 4,948,239$      6,883,097$            5,184,490$      236,251$         (1,698,607)$    75.32% Interest and other misc 3,084                4,000                       10,339              7,255                6,339                258.48% TOTAL REVENUES 4,951,323        6,887,097               5,194,829        243,506           (1,692,268)       75.43% EXPENSES: Personnel 2,637,501        4,257,370               2,729,879        (92,378)            1,527,491        64.12% Supplies 697,002           858,395                  774,911           (77,909)            83,484              90.27% Contracted Services 1,109,608        1,876,861               1,418,705        (309,097)          458,156           75.59% Internal Services 109,581           273,086                  204,815           (95,234)            68,271              75.00% TOTAL OPERATING EXPENSES 4,553,692        7,265,712               5,128,310        (574,618)          2,137,402        70.58% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 397,631           (378,615)                 66,519              (331,112)          445,134           N/A TOTAL DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY 15,149               ‐                                27,003              (11,854)            (27,003)            N/A Transfers In 11,045              255,040                  100,000           88,955              (155,040)          39.21% NET TRANSFERS 11,045              255,040                  100,000           88,955              (155,040)          39.21% CHANGE IN FUND BALANCE 393,527           (123,575)                 139,516           (254,011)          263,091           N/A BEGINNING FUND BALANCE, Jan 1 785,189           937,922                  937,922           152,733            ‐                         100.00% ENDING FUND BALANCE, Sep 30 1,178,716$      814,347$                1,077,438$      (101,278)$        263,091$         132.31% FACILITIES VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 33 of 35   Communications Fund  This fund accounts for community and intergovernmental relations and communications with the public. Communications is  a major activity of the city’s administration responsible for external communications, employee communications, media  relations, and coordination of all departments in producing the city’s website. Expenses are paid by the Communications  Fund and rates are charged to departments based on usage.        Interdepartmental services – The increase over prior year primarily relates to an increase in budgeted charges to each  department due to increased budgets for expenditure items including personnel, which received a cost‐of‐living adjustment  in 2023.     Personnel – The increase from prior year is largely due to filling the director position which was vacant until January 2023.  2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 1,029,971$      1,592,402$            1,194,250$      164,279$         (398,152)$        75.00% Interest and other misc 544                   1,000                       8,401                7,857                7,401                840.10% TOTAL REVENUES 1,033,515        1,593,402               1,202,651        169,136           (390,751)          75.48% EXPENSES: Personnel 601,738           1,184,992               717,842           (116,104)          467,150           60.58% Supplies 34,499              55,432                    35,366              (867)                  20,066              63.80% Contracted Services 211,365           401,155                  223,180           (11,815)            177,975           55.63% Internal Services 1,526                4,696                       3,522                (1,996)               1,174                75.00% TOTAL OPERATING EXPENSES 849,128           1,646,275               979,910           (130,782)          666,365           59.52% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 184,387           (52,873)                   222,741           38,354              275,614           N/A TOTAL DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY ‐                         46,651                    46,651              (46,651)             ‐                         100.00% Transfers Out ‐                         18,775                     ‐                          ‐                         18,775              0.00% NET TRANSFERS ‐                         (18,775)                    ‐                          ‐                         18,775              N/A CHANGE IN FUND BALANCE 184,387           (118,299)                 176,090           (8,297)               294,389           N/A BEGINNING FUND BALANCE, Jan 1 141,517           428,724                  428,724           287,207            ‐                         100.00% ENDING FUND BALANCE, Sep 30 325,904$         310,425$                604,814$         278,910$         294,389$         194.83% COMMUNICATIONS VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 34 of 35   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 51% of the total cash and investments for the city in the LGIP.    Medical/Dental Claims – The increase from prior year increased claims costs which is likely due to increased medical costs  as well as fewer vacant positions than prior years.                    2022 2023 2023 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Premiums 9,452,305$      15,603,216$            9,949,570$      497,265$         (5,653,646)$    63.77% Interest and other misc 396,338           520,000                    582,204           185,866           62,204              111.96% TOTAL REVENUES 9,848,643        16,123,216               10,531,774      683,131           (5,591,442)       65.32% EXPENSES: Personnel 265,755           339,251                    241,713           24,042              97,538              71.25% Medical/Dental Claims 7,907,603        14,166,872               8,723,101        (815,498)          5,443,771        61.57% Supplies 2,145                7,500                         2,640                (495)                  4,860                35.20% Contracted Services 367,209           579,786                    373,027           (5,818)               206,759           64.34% Internal Services 70,252              103,752                    77,814              (7,562)               25,938              75.00% TOTAL OPERATING EXPENSES 8,612,964        15,197,161               9,418,295        (805,331)          5,778,866        61.97% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 1,235,679        926,055                    1,113,479        (122,200)          187,424           120.24% TOTAL DEBT SERVICE ‐                          ‐                                   ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY ‐                          ‐                                   ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                          ‐                                   ‐                          ‐                          ‐                         N/A CHANGE IN FUND BALANCE 1,235,679        926,055                    1,113,479        (122,200)          187,424           120.24% BEGINNING FUND BALANCE, Jan 1 6,655,137        6,935,644                 6,935,644        280,507            ‐                         100.00% ENDING FUND BALANCE, Sep 30 7,890,816$      7,861,699$               8,049,123$      158,307$         187,424$         102.38% Insurance Reserves 3,774,249        4,559,148                 4,559,148         AVAILABLE FUND BALANCE 4,116,567$      3,302,551$               3,489,975$       HEALTH INSURANCE VARIANCE Quarterly Financial Report                                                               City of Renton, Washington 3rd Quarter 2023  Page 35 of 35   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 51% 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 38,624$           40,000$                   ‐$                       (38,624)$          (40,000)$          0.00% Premiums 1,968,513        1,825,000               1,368,750        (599,763)          (456,250)          75.00% Interest and other misc 207,175           170,000                  586,897           379,722           416,897           345.23% TOTAL REVENUES 2,214,312        2,035,000               1,955,647        (258,665)          (79,353)            96.10% EXPENSES: Personnel 62,036              101,664                  74,280              (12,244)            27,384              73.06% Medical/Dental Claims 879,163           1,201,877               917,402           (38,239)            284,475           76.33% Contracted Services 39,853              66,293                    72,896              (33,043)            (6,603)               109.96% TOTAL OPERATING EXPENSES 981,052           1,369,834               1,064,578        (83,526)            305,256           77.72% AMOUNT AVAILABLE FOR DEBT SERVICE,  CAPITAL, AND TRANSFERS 1,233,260        665,166                  891,069           (342,191)          225,903           133.96% TOTAL DEBT SERVICE ‐                          ‐                                 ‐                         ‐                          ‐                         N/A CAPITAL OUTLAY ‐                          ‐                                 ‐                          ‐                          ‐                         N/A NET TRANSFERS ‐                          ‐                                 ‐                          ‐                          ‐                         N/A CHANGE IN FUND BALANCE 1,233,260        665,166                  891,069           (342,191)          225,903           133.96% BEGINNING FUND BALANCE, Jan 1 18,188,260      19,928,792            19,928,792      1,740,532         ‐                         100.00% ENDING FUND BALANCE, Sep 30 19,421,520$   20,593,958$          20,819,861$   1,398,341$      225,903$         101.10% Insurance Reserves 19,421,520      20,593,958            20,819,861       AVAILABLE FUND BALANCE ‐$                        ‐$                              ‐$                        RETIREE HEALTHCARE VARIANCE