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Home My WebLink AboutQUARTER 1 2022 Finance Department Memorandum DATE: May 24, 2022 TO: Ryan McIrvin, Council President Members of Renton City Council CC: Armondo Pavone, Mayor Ed VanValey, Chief Administrative Officer FROM: Kari Roller, Finance Administrator SUBJECT: Quarterly Financial Report 1st Quarter 2022 The attached report provides a detailed discussion of General Fund revenues and expenditures with comparison to prior year and budget through the end of March 2022. Detailed explanations are provided for General Fund revenue and expenditure items with variances exceeding $100K. Also provided are tables for each of the City’s other funds with comparison to prior year and annual budget (YTD budgets are not prepared for City funds, with the exception of the General Fund). Please do not hesitate to contact me at x6931 should you have any questions or any suggestions about the report. Page 1 of 28 OVERVIEW This quarterly financial report reflects the City’s revenue and expenditures/expenses for the fiscal year through March 31, 2022. A detailed analysis, including current to prior year and budget to actual comparison is included for each City fund. Excluded from this report are the City’s fiduciary funds as these funds are held on behalf of others and are not available for City use. Budget figures shown reflect amounts authorized in ORD 6062, which includes the carry forward budget adjustment approved April 25, 2022. GENERAL FUND The General Fund is used to account for resources that are not generally dedicated for a specific purpose. The General Fund is used to meet the basic services that the City provides including, but not limited to, police protection, parks and recreation, human services, municipal court, street maintenance and planning, economic development, and administrative functions. The table below displays the YTD revenues and expenditures for the General Fund, including comparison to prior year, comparison to YTD budget amounts, and percentage of annual budget. YTD budget amounts are generally based on the collection/disbursement patterns for the same period of the preceding two (2) years, with the following exceptions: property tax revenue budgets are based on the collection patterns over the preceding four (4) years and sales tax revenue budgets are based on the collection patterns over the preceding five (5) years. General Fund YTD Prior Year YTD YTD Budget % BUDGET REVENUES Taxes 78,953,071$ 93,151,259$ 87,329,261$ 16,837,714$ 18,887,682$ 341,228$ 2,049,968$ 21.63% Licenses & Permits 5,199,555 5,255,808 5,822,163 1,838,682 2,228,173 543,917 389,491 38.27% Intergovernmental 9,387,904 8,843,799 21,199,899 1,201,211 1,041,125 (238,179) (160,086) 4.91% Charges for Services 7,514,930 8,988,252 9,730,499 2,639,832 2,277,969 (104,024) (361,863) 23.41% Fines and Penalties 3,310,279 4,622,320 3,829,782 825,605 1,060,576 385,973 234,971 27.69% Miscellaneous 2,465,125 1,752,739 1,989,454 675,379 637,074 232,647 (38,305) 32.02% Other Financing Sources (Transfer‐In, etc)17,656,495 (614,116) (884,366) (884,366) 8,483 (133,397) 892,849 N/A TOTAL REVENUES 124,487,359 122,000,061 129,016,692 23,134,057 26,141,082 1,028,165 3,007,025 20.26% EXPENDITURES City Attorney 2,207,330 2,440,372 2,993,828 741,530 646,652 (27,905) 94,878 21.60% Community and Economic Development 10,628,438 9,980,902 13,020,822 4,891,814 2,462,199 1,409,346 2,429,615 18.91% Council 425,744 592,930 538,824 149,819 128,567 13,918 21,252 23.86% Court Services 2,444,436 2,622,084 3,491,043 906,742 707,412 (44,300) 199,330 20.26% Equity, Housing, and Human Services 1,507,729 3,139,627 4,782,478 692,832 745,566 (505,559) (52,734) 15.59% Executive Services 9,430,132 4,375,713 5,832,195 1,618,110 1,289,833 (235,258) 328,277 22.12% Finance 3,503,205 3,844,375 4,916,708 1,032,738 896,508 (48,103) 136,230 18.23% Human Resources 1,393,876 1,398,222 1,771,517 436,401 372,002 (20,453) 64,399 21.00% Parks and Recreation 11,963,172 12,281,771 17,655,118 4,324,356 3,024,715 (181,873) 1,299,641 17.13% Police 37,771,599 41,077,136 44,222,867 11,266,101 10,006,984 208,332 1,259,117 22.63% Public Works 13,502,943 13,182,026 15,552,646 3,919,521 3,597,299 (258,189) 322,222 23.13% Other Non‐Departmental 23,408,019 12,418,823 19,443,801 4,205,767 1,104,683 (309,337) 3,101,084 5.68% TOTAL EXPENDITURES 118,186,623 107,353,981 134,221,847 34,185,730 24,982,420 619 9,203,310 18.61% Change in Fund Balance 6,300,735 14,646,080 (5,205,155) (11,051,673) 1,158,662 1,028,786 12,210,335 N/A Beginning Fund Balance 48,155,847 54,456,582 69,102,662 69,102,662 69,102,662 14,646,080 ‐ 100.00% ENDING FUND BALANCE 54,456,582$ 69,102,662$ 63,897,507$ 58,050,989$ 70,261,324$ 15,674,866$ 12,210,335$ 109.96% Operating Reserve 9,405,500 9,405,500 9,405,500 Economic Development Reserve 2,500,000 2,500,000 2,500,000 AVAILABLE FUND BALANCE 51,992,007$ 46,145,489$ 58,355,824$ Summary of Sources and Uses Annual Actual Favorable (Unfavorable) 2020 2021 2022 Variance Annual Actual Annual Budget YTD Budget YTD Actual Quarterly Financial Report 1st Quarter 2022 Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 2 of 28 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 favourable/(unfavourable) format. TAXES Property Tax – Property tax collections by King County are below prior year and YTD budget. $117K of property taxes collected through March 31 were for prior years’ delinquent taxes, bringing the balance of delinquent taxes receivable to $189K. The remainder of taxes collected were for the 2022 levy. The 2022 property tax levy, after levy changes by the assessor’s office, totalled $23.3 M. The taxes receivable balance for the 2022 levy is $22.3M at March 31. 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 general retail and automotive 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 March sales tax report for information regarding sales tax figures by industry. Criminal Justice Sales Tax – The criminal justice sales tax is a 0.1% sales tax imposed by the County for criminal justice purposes. The County must share 90% of the revenues 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. Utility Tax – The amount of utility tax over budget is due to the overall budget was decreased at the mid‐biennial budget adjustment as revenues were slow to come in due to the pandemic. After the utility moratorium was lifted; we did see an increase in utility tax payments in the 4th quarter of 2021. This budget will continue to be monitored and will be adjusted during the year if needed. The breakdown of Utility Tax is as follows: Gambling Excise Tax – Gambling excise taxes can fluctuate based on economy therefore the budget is set at an average amount over the past several years. The current year revenues to date are on par with budget. 2021 2022 2022 Actual Budget Actual $ % $ % Property Tax 1,376,356 1,113,898 1,101,262 (275,094) ‐20.0% (12,636) ‐1.1% Local Retail Sales Tax 7,635,399 7,117,765 8,834,459 1,199,060 15.7% 1,716,694 24.1% State Sales Tax Credit 77,163 ‐ 74,932 (2,231) ‐2.9%74,932 100.0% Criminal Justice Sales Tax 798,138 771,659 910,745 112,607 14.1% 139,086 18.0% Natural Gas Use Tax 41,127 38,884 67,778 26,651 64.8% 28,894 74.3% Admission Tax ‐ 107,206 32,148 32,148 100.0%(75,058) ‐70.0% Utility Tax 4,290,228 4,121,811 4,720,823 430,595 10.0% 599,012 14.5% Leasehold Excise Tax 41,316 45,022 34,445 (6,871) ‐16.6% (10,577) ‐23.5% Gambling Excise Tax 828,112 664,352 651,433 (176,679) ‐21.3% (12,919) ‐1.9% B&O Tax 3,184,776 2,857,118 2,459,657 (725,119) ‐22.8% (397,461) ‐13.9% YTD Total 18,546,453$ 16,837,714$ 18,887,682$ 341,229$ 1.8% 2,049,968$ 12.2% Annual Total 93,151,259$ 87,329,261$ Taxes by Type Revenue 2022 vs. 2021 2022 vs. Budget Year to Date through March 2021 2022 2022 Tax by Type YTD Actual YTD Budget YTD Actual $ % $ % Electrical 1,601,436$ 1,647,977$ 1,728,402$ 126,966$ 7.9% $ 80,425 4.9% Natural Gas 627,487 505,546 704,189 76,702 12.2% 198,643 39.3% Cell 141,864 120,649 148,000 6,136 4.3% 27,351 22.7% Phone 170,663 157,092 185,776 15,113 8.9% 28,684 18.3% Cable 351,424 248,940 344,143 (7,281) ‐2.1% 95,203 38.2% Garbage 184,485 153,926 193,942 9,457 5.1% 40,016 26.0% City Utilities 1,212,869 1,287,681 1,416,371 203,502 16.8% 128,690 10.0% YTD Total 4,290,228$ 4,121,811$ 4,720,823$ 430,595$ 10.0%599,012$ 14.5% 2022 vs. 2021 2022 vs. Budget Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 3 of 28 Business and Occupation (B&O) Tax – B&O tax revenues rely heavily on the revenue of a limited number of large businesses. Payments received in the 1st quarter of each year are generally for activity in the 4th quarter of the prior year. 2021 is a bit higher due to a timing of a payment of $1.3M of revenue from one taxpayer who had a 4th quarter amount due for the first time as they had reached the B&O tax “cap” in prior years in previous quarters. Although quarter 1 receipts are below budget currently this is expected to be on par with budget once the first quarter payments are received in April. LICENSES & PERMITS Business Licenses – The amount of business license revenue over budget is due to better than expected economic recovery. The business license revenue budget was adjusted down at the start of the pandemic and has remained low as it was unknown how quickly the economy would recover and how many businesses would be able to survive the COVID restrictions placed on businesses. Building Permits – Building permit revenues are up from the prior year due to a general increase in the construction industry. Building permits are collected upon permit issuance. INTERGOVERNMENTAL State Shared Revenue – The breakdown of State Shared Revenue is as follows: 2021 2022 2022 Actual Budget Actual $ % $ % Franchise Fees 390,734 418,263 424,613 33,879 8.7% 6,350 1.5% Business Licenses 696,393 603,292 721,667 25,274 3.6% 118,375 19.6% Animal Licenses 19,070 26,267 16,720 (2,350) ‐12.3% (9,547) ‐36.3% Building Permits 568,740 778,238 1,050,867 482,128 84.8% 272,629 35.0% ROW/Street Excavation Permits 9,235 11,802 13,880 4,645 50.3% 2,078 17.6% Special Event Permits 85 821 425 340 400.0%(396) ‐48.2% YTD Total 1,684,256$ 1,838,682$ 2,228,173$ 543,916$ 32.3% 389,490$ 21.2% Annual Total 5,255,808$ 5,822,163$ Licenses & Permits by Type Year to Date through March Revenue 2022 vs. 2021 2022 vs. Budget 2021 2022 2022 Actual Budget Actual $ % $ % State Shared Revenue 938,997$ 961,559$ 988,904 49,907$ 5.3% 27,345$ 2.8% Federal Grants 62,271 156,682 14,537 (47,734) ‐76.7% (142,145) ‐90.7% State Grants 12,705 56,671 13,811 1,106 8.7%(42,860) ‐75.6% Local Grants 265,330 26,299 23,873 (241,457) ‐91.0% (2,426) ‐9.2% YTD Total 1,279,303$ 1,201,211$ 1,041,125$ (238,178)$ ‐18.6% (160,086)$ ‐13.3% Annual Total 8,443,799$ 21,199,899$ Intergovernmental by Type Revenue 2022 vs. 2021 2022 vs. Budget Year to Date through March 2021 2022 2022 Tax by Type YTD Actual YTD Budget YTD Actual$%$% Judicial Contribution 21,529$ 6,455$ 10,776$ (10,753)$ ‐50.0%4,321$ 66.9% Crim Just ‐ Pop 8,393 5,979 8,919 526 6.3% 2,940 49.2% Crim Just ‐ Spec Prog 29,961 27,468 31,700 1,739 5.8% 4,232 15.4% State DUI 4,142 4,205 4,479 337 8.1% 274 6.5% Marijuana Distribution 49,840 45,695 65,215 15,375 30.9% 19,520 42.7% Liquor Profits 208,438 212,476 207,761 (677) ‐0.3% (4,715) ‐2.2% Liquor Excise Tax 168,959 109,431 180,387 11,428 6.8% 70,956 64.8% Fuel Tax 447,735 549,850 479,667 31,932 7.1%(70,183) ‐12.8% YTD Total 938,997$ 961,559$ 988,904$ 49,907$ 5.3%27,345$ 2.8% 2022 vs. 2021 2022 vs. Budget Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 4 of 28 Federal/State/Local Grants – Federal/State/Local grant revenues vary significantly from year‐to‐year based on what grants have been awarded and the timing of grant expenditures and related reimbursement requests. Grant revenues are budgeted at 100% of the award at the time the grant agreement is finalized, and any amounts not received are carried forward each year until either 1) the grant funds are fully received or 2) the grant agreement expires. CHARGES FOR SERVICES Public Safety Services – The decrease in public safety services from the prior year is primarily due to the timing of payments. 2021 included a large payment of $153K from services rendered in 2020 paid in 2021. The amount under the YTD budget is primarily due to lower than anticipated receipts for private security services. Development Services ‐ The decrease in development services from prior year is due to a decrease in planning fees ($199K) offset by higher inspections fees ($50K). The amount under budget is due to a decrease in planning fees ($87K) and inspection fees ($35K). Social Services – The increase over prior year and budget is primarily related to the timing of receipt of two grants receipted in 2022 for activity from 2021. Grants can vary significantly from year to year based on the timing of related reimbursement requests. Recreation/Farmer’s Market/Events – Recreation center fees have been impacted significantly from the pandemic and overall closures of the recreation center. The recreation center is now open and revenues are expected to increase into the spring and summer months. FINES AND PENALTIES Photo Enforcement Program – Photo enforcement revenues have increased from prior year and are over budget due to increased traffic volumes and school zone cameras were turned back on as in‐person learning resumed in early March 2021. 2021 2022 2022 Actual Budget Actual $ % $ % Passport Fees ‐ 30,938 2,695 2,695 100.0%(28,243) ‐91.3% Court Services (11,883) 1,321 13,821 25,705 ‐216.3%12,502 946.5% General Government Services 257 302 80 (177) ‐68.8% (222) ‐73.5% Public Safety Services 429,397 408,616 255,853 (173,544) ‐40.4% (152,763) ‐37.4% Development Services 674,315 658,002 527,529 (146,786) ‐21.8% (130,473) ‐19.8% Transportation Services 6,891 ‐ 275 (6,616) ‐96.0%275 100.0% Social Services ‐ ‐ 106,235 106,235 100.0% 106,235 100.0% Recreation/Farmer's Market/Events 13,188 266,218 83,598 70,410 533.9%(182,619) ‐68.6% Interfund Services 1,269,828 1,274,435 1,287,882 18,054 1.4% 13,448 1.1% YTD Total 2,381,993$ 2,639,832$ 2,277,969$ (104,024)$ ‐4.4% (361,862)$ ‐13.7% Annual Total 8,988,252$ 9,730,499$ Year to Date through March Charges for Services by Type Revenue 2022 vs. 2021 2022 vs. Budget 2021 2022 2022 Actual Budget Actual $ % $ % Civil Penalties 70,312$ 90,528$ 69,603$ (708)$ ‐1.0% (20,924)$ ‐23.1% Photo Enforcement Program 558,136 681,241 931,707 373,570 66.9% 250,465 36.8% Criminal Traffic Misdemeanor Fines 13,743 13,605 9,133 (4,610) ‐33.5% (4,473) ‐32.9% Criminal Non‐Traffic Fines 1,933 11,108 1,375 (559) ‐28.9% (9,733) ‐87.6% Criminal Costs 17,129 14,618 8,625 (8,504) ‐49.6% (5,993) ‐41.0% Non‐Court Fines, Forfeitures and Penalties 13,350 14,505 40,133 26,783 200.6% 25,628 176.7% YTD Total 674,603$ 825,605$ 1,060,576$ 385,973$ 57.2% 234,971$ 28.5% Annual Total 4,622,320$ 3,829,782$ Fines and Penalties by Type Revenue 2022 vs. 2021 2022 vs. Budget Year to Date through March Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 5 of 28 MISCELLANEOUS REVENUES Rents, Leases, and Concessions – Rents, leases, and concessions revenues increased over the prior year primarily due to rent waivers provided in 2021 in response to COVID‐19. Rents, leases, and concessions revenues are over budget primarily due to the timing of payments recognizing some 2021 rental payments in 2022. OTHER FINANCING SOURCES Transfers from Other Funds – Prior year transfer relates to a transfer between the general fund and the municipal arts fund. Transfers between the consolidated funds were previously recorded as transfer in revenue and transfer out expenditures. Transfers between the consolidated funds are now net together to avoid overstating revenues and expenditures. The amount under budget relates to the anticipated transfer of funds from the capital projects fund for the family first center. The funds previously transferred to fund the family first construction project are now being replaced with REET 1 revenues. Prior Period Adjustment – A recurring interfund transfer between the general fund and the surface water fund is being reversed; this transfer should not have continued annually. GENERAL FUND EXPENDITURES The following tables summarize expenditures by category for each department within the General Fund. 2021 2022 2022 Actual Budget Actual $ % $ % Interest and Other Investment Earnings 86,830$ 57,338$ 66,687$ (20,143)$ ‐23.2%9,349$ 16.3% Rents, Leases, and Concessions 281,978 486,975 516,213 234,235 83.1% 29,238 6.0% Contributions/Donations from Private Source 8,445 14,471 11,760 3,315 39.3%(2,711) ‐18.7% Other 27,174 116,595 42,414 15,240 56.1%(74,181) ‐63.6% YTD Total 404,427$ 675,379$ 637,074$ 232,647$ 57.5%(38,305)$ ‐5.7% Annual Total 1,752,739$ 1,989,454$ Miscellaneous by Type Year to Date through March Revenue 2022 vs. 2021 2022 vs. Budget 2021 2022 2022 Actual Budget Actual $ % $ % Transfers from Other Funds 117,900$ 2,514,187$ ‐$ (117,900) 0.0%(2,514,187) 0.0% Prior Period Adjustment ‐ (3,437,067) ‐ ‐ N/A 3,437,067 0.0% Interfund Loan Payment Received ‐ 38,514 3,851 3,851 100.0%(34,663) ‐90.0% Insurance Recoveries 23,980 ‐ 2,632 (21,348) ‐89.0%2,632 100.0% Sale of Capital Assets ‐ ‐ 2,000 2,000 100.0% 2,000 100.0% YTD Total 141,880$ (884,366)$ 8,483$ (133,397)$ ‐94.0%892,849$ ‐101.0% Annual Total (614,116)$ (884,366)$ Revenue 2022 vs. 2021 2022 vs. Budget Year to Date through March Other Financing Sources by Type General Fund Summary of Uses 2021 Year to Date through March YTD Actual YTD Budget YTD Actual $%$% Personnel 14,843,162 18,595,923 15,840,584 (997,422)$ ‐6.7%2,755,339$ 14.8% Supplies 226,028 350,240 374,598 (148,570) ‐65.7% (24,358) ‐7.0% Contracted Services 4,778,181 9,510,102 4,205,542 572,639 12.0% 5,304,560 55.8% Capital Outlay 701,865 13,147 16,190 685,675 97.7%(3,043) ‐23.1% Debt Service ‐ 225,309 225,309 (225,309) 100.0%‐ 0.0% Internal Services 4,312,305 5,489,726 4,318,787 (6,482) ‐0.2%1,170,939 21.3% Transfers Out 121,498 1,283 1,410 120,088 98.8%(127) ‐9.9% Total Expenditures 24,983,039$ 34,185,730$ 24,982,420$ 619$ 0.0% 9,203,310$ 26.9% Annual Total 107,353,981$ 134,221,847$ 2022 vs. Budget2022 2022 vs. 2021 Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 6 of 28 Personnel – there was an increase in personnel costs over the prior year due to filling positions that were held vacant in 2021 in response to COVID‐19 as well as a cost of living adjustment increase of 6% for most of the city staff. The amount of personnel costs under budget is due to the budget assuming all positions would be filled for the entire year. Supplies – The increase over prior year is primarily relates to an increase in street maintenance supplies ($81K) such as asphalt and snow and ice control supplies. The extreme weather of ice, snow and rain experienced in the Q4 required supplies to be replenished at the beginning of the year. Contracted Services ‐ The contracted services below budget and decrease from prior year are due to the following: (1) two affordable housing grants were paid in the 1st quarter of 2021 ($99.6K and $700K). These grants were not an ongoing costs. (2) ARPA funds allocated for business grants of $600K were budgeted in support for downtown business impacted by the pandemic. This grant program is ongoing and not all of the funds have yet to be disbursed. (3) $4M was budgeted for general ongoing maintenance that was post‐poned due to the pandemic. These costs have yet to be spent. (4) payment to SCORE jail for March 2022 services were not paid until April 2022. Capital Outlay – Economic Development capital outlay is associated with the Downtown Streetscape project being funded through a CDBG grant. Prior year figures include the funding of those planning/construction costs. Debt Service – The general fund issued an interfund loan to the Maplewood gold course to fund the purchase of golf carts. This interfund loan was approved in 2021 however due to supply chain issues the carts were not received until 2022. Internal Services – Current quarter is on par in comparison to prior year. The amount under budget is largely due to the YTD budget is calculated by taking the average of the last two years actual costs through Q1. The last two years showed a larger allocation in the first quarter for internal services (approximately 30%), with these fees adjusted in the later quarters. This variance is expected to smooth out as the prior year average percentage will more closely align with the actual charges. Interfund Transactions – Prior year transfer relates to a transfer between the general fund and the municipal arts fund. Transfers between the consolidated funds were previously recorded as transfer in revenue and transfer out expenditures. Transfers between the consolidated funds are now net together to avoid overstating revenues and expenditures. Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 7 of 28 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. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 25,546$ 44,610$ ‐$ (25,546)$ (44,610)$ 0.00% Charges for services 63,648 ‐ ‐ (63,648) ‐ N/A Investment Earnings 7,526 ‐ 3,877 (3,649) 3,877 N/A TOTAL REVENUES 96,720 44,610 3,877 (92,843) (40,733) 8.69% EXPENDITURES: Principal 188,804 3,069,547 195,873 (7,069) 2,873,674 6.38% Interest 61,513 1,272,373 78,674 (17,161) 1,193,699 6.18% TOTAL EXPENDITURES 250,317 4,341,920 274,547 (24,230) 4,067,373 6.32% Transfers In ‐ 4,489,359 ‐ ‐ (4,489,359) 0.00% NET TRANSFERS ‐ 4,489,359 ‐ ‐ (4,489,359) 0.00% CHANGE IN FUND BALANCE (153,597) 192,049 (270,670) (117,073) (462,719) ‐140.94% BEGINNING FUND BALANCE, Jan 1 5,010,629 5,218,125 5,218,125 207,496 ‐ 100.00% ENDING FUND BALANCE, Mar 31 4,857,032$ 5,410,174$ 4,947,455$ 90,423$ (462,719)$ 91.45% Debt Service Reserve 2,717,575 2,717,575 2,717,575 AVAILABLE FUND BALANCE 2,139,457$ 2,692,599$ 2,229,880$ VARIANCE FAVORABLE (UNFAVORABLE) GENERAL GOVERNMENTAL MISCELLANEOUS DEBT Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 8 of 28 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. 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 or Renton, as authorized under RCW 67.28.180. The Lodging Tax Advisory Committee 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. 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. 2021 2022 2022 YTD YTD ACTUAL ANNUAL YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 42,565$ 200,000$ 99,262$ 56,697$ (100,738)$ 49.63% Contributions ‐ ‐ ‐ ‐ ‐ N/A Investment Earnings 1,210 ‐ 579 (631) 579 N/A TOTAL REVENUES 43,775 200,000 99,841 56,066 (100,159) 49.92% EXPENDITURES: Contracted Services 56,505 508,207 53,048 3,457 455,159 10.44% TOTAL EXPENDITURES 56,505 508,207 53,048 3,457 455,159 10.44% Transfers Out ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE (12,730) (308,207) 46,793 59,523 355,000 ‐15.18% BEGINNING FUND BALANCE, Jan 1 893,604 728,421 728,421 (165,183) ‐ 81.51% ENDING FUND BALANCE, Mar 31 880,874$ 420,214$ 775,214$ (105,660)$ 355,000$ 88.01% VARIANCE FAVORABLE (UNFAVORABLE) HOTEL/MOTEL 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 18,901$ 57,674$ 16,597$ (2,304)$ (41,077)$ 28.78% Investment Earnings 908 ‐ 565 (343) 565 N/A TOTAL REVENUES 19,809 57,674 17,162 (2,647) (40,512) 29.76% EXPENDITURES: Supplies ‐ 335,837 6,205 6,205 329,632 1.85% Contracted Services 3,820 51,372 1,930 (1,890) 49,442 3.76% Capital Outlay ‐ 40,000 ‐ ‐ 40,000 0.00% TOTAL EXPENDITURES 3,820 427,209 8,135 4,315 419,074 1.90% Transfers In ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 15,989 (369,535) 9,027 (6,962) 378,562 N/A BEGINNING FUND BALANCE, Jan 1 677,710 731,245 731,245 53,535 ‐ 100.00% ENDING FUND BALANCE, Mar 31 693,699$ 361,710$ 740,272$ 46,573$ 378,562$ 204.66% CABLE COMMUNICATIONS VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 9 of 28 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 tax was not authorized at the time the 2021‐2022 budget was prepared. Anticipated revenues are expected to be included in the mid‐biennial budget adjustment. The additional sales and use tax is restricted for housing and related services, in accordance with RCW 82.14.530. 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 fund will receive revenue by selling Wetlands credits which will be used to fund the ongoing maintenance of the wetland in perpetuity. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes ‐$ 3,490,000$ 1,017,318$ 1,017,318$ (2,472,682)$ 29.15% Investment Earnings ‐ ‐ 2,675 2,675 2,675 N/A TOTAL REVENUES ‐ 3,490,000 1,019,993 1,019,993 (2,470,007) 29.23% EXPENDITURES: Contracted Services ‐ 1,710,000 ‐ ‐ 1,710,000 0.00% TOTAL EXPENDITURES ‐ 1,710,000 ‐ ‐ 1,710,000 0.00% NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE ‐ 1,780,000 1,019,993 1,019,993 (760,007) 57.30% BEGINNING FUND BALANCE, Jan 1 ‐ 3,171,729 3,171,729 3,171,729 ‐ 100.00% ENDING FUND BALANCE, Mar 31 ‐$ 4,951,729$ 4,191,722$ 4,191,722$ (760,007)$ 84.65% HOUSING & SUPPORTIVE SERVICES VARIANCE FAVORABLE (UNFAVORABLE) 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charge for services 24,200$ ‐$ ‐$ (24,200)$ ‐$ N/A Investment Earnings 471$ ‐$ 177$ (294)$ 177$ N/A TOTAL REVENUES 24,671 ‐ 177 (24,494) 177 N/A EXPENDITURES: Personnel ‐ 11,000 1,610 1,610 (9,390) 14.63% Contracted Services ‐ ‐ 358 358 358 N/A TOTAL EXPENDITURES ‐ 11,000 1,968 1,968 9,032 17.89% NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 24,671 (11,000) (1,791) (26,462) 9,209 N/A BEGINNING FUND BALANCE, Jan 1 348,826 234,325 234,325 (114,501) ‐ 100.00% ENDING FUND BALANCE, Mar 31 373,497$ 223,325$ 232,534$ (140,963)$ 9,209$ 104.12% SPRINGBROOK WETLANDS VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 10 of 28 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. 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. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Contributions 8,118$ ‐$ 1,881$ (6,236)$ 1,881$ N/A Investment Earnings 1,098 ‐ 459 (639) 459 N/A TOTAL REVENUES 9,216 ‐ 2,340 (6,875) 2,340 N/A EXPENDITURES: Supplies 20,379 330,969 41,304 20,925 289,665 12.48% Contracted Services 13,625 ‐ 52,410 38,785 (52,410) N/A Capital Outlay 31,504 ‐ 75,622 44,118 (75,622) N/A TOTAL EXPENDITURES 65,508 330,969 169,336 103,828 161,633 51.16% Transfers In ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ (300,556) ‐ ‐ 300,556 N/A CHANGE IN FUND BALANCE (56,292) (631,525) (166,996) (110,703) 464,529 N/A BEGINNING FUND BALANCE, Jan 1 872,449 631,525 631,525 (240,924) ‐ 100.00% ENDING FUND BALANCE, Mar 31 816,157$ ‐$ 464,529$ (351,628)$ 464,529$ N/A POLICE SEIZURE VARIANCE FAVORABLE (UNFAVORABLE) 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Fines and penalties 9,949$ ‐$ 1,348$ (8,601)$ 1,348$ N/A Investment Earnings 204 ‐ 133 (71) 133 N/A TOTAL REVENUES 10,153 ‐ 1,481 (8,672) 1,481 N/A EXPENDITURES: Contracted Services ‐ 174,826 ‐ ‐ (174,826) 0.00% TOTAL EXPENDITURES ‐ 174,826 ‐ ‐ 174,826 0.00% Transfers In ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 10,153 (174,826) 1,481 (8,672) 176,307 N/A BEGINNING FUND BALANCE, Jan 1 150,637 174,826 174,826 24,189 ‐ 100.00% ENDING FUND BALANCE, Mar 31 160,790$ ‐$ 176,307$ 15,517$ 176,307$ N/A POLICE CSAM SEIZURE VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 11 of 28 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. 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. 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. 2021 2022 2022 YTD YTD ACTUAL ANNUAL YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 70,924$ 86,500$ 64,747$ (6,177)$ (21,753)$ 74.85% Investment Earnings 2,624 ‐ 2,621 (3) 2,621 N/A TOTAL REVENUES 73,548 86,500 67,368 (6,180) (19,132) 77.88% EXPENDITURES: TOTAL EXPENDITURES ‐ ‐ ‐ ‐ ‐ N/A Transfers In ‐ ‐ ‐ ‐ ‐ N/A Transfers Out ‐ 3,380,595 ‐ ‐ 3,380,595 0.00% NET TRANSFERS ‐ (3,380,595) ‐ ‐ 3,380,595 0.00% CHANGE IN FUND BALANCE 73,548 (3,294,095) 67,368 (6,180) 3,361,463 ‐2.05% BEGINNING FUND BALANCE, Jan 1 1,713,833 3,433,393 3,433,393 1,719,560 ‐ 100.00% ENDING FUND BALANCE, Mar 31 1,787,381$ 139,298$ 3,500,761$ 1,713,380$ 3,361,463$ 2513.15% COMMUNITY SERVICES IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) 2021 2022 2022 YTD YTD ACTUAL ANNUAL YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 17,650$ 99,000$ 139,980$ 122,330$ 40,980$ 141.39% Investment Earnings 2,921 ‐ 1,529 (1,392) 1,529 N/A TOTAL REVENUES 20,571 99,000 141,509 120,938 42,509 142.94% EXPENDITURES: TOTAL EXPENDITURES ‐ ‐ ‐ ‐ ‐ N/A Transfers Out ‐ 500,634 ‐ ‐ 500,634 0.00% NET TRANSFERS ‐ (500,634) ‐ ‐ 500,634 0.00% CHANGE IN FUND BALANCE 20,571 (401,634) 141,509 120,938 543,143 ‐35.23% BEGINNING FUND BALANCE, Jan 1 2,191,452 1,960,733 1,960,733 (230,719) ‐ 100.00% ENDING FUND BALANCE, Mar 31 2,212,023$ 1,559,099$ 2,102,242$ (109,781)$ 543,143$ 134.84% FIRE IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 12 of 28 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. 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. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 177,329$ 200,000$ 1,941,631$ 1,764,302$ 1,741,631$ 970.82% Investment Earnings 4,764 ‐ 4,619 (145) 4,619 N/A TOTAL REVENUES 182,093 200,000 1,946,250 1,764,157 1,746,250 973.13% EXPENDITURES: TOTAL EXPENDITURES ‐ ‐ ‐ ‐ ‐ N/A Transfers Out ‐ 200,000 ‐ ‐ 200,000 0.00% NET TRANSFERS ‐ (200,000) ‐ ‐ 200,000 0.00% CHANGE IN FUND BALANCE 182,093 ‐ 1,946,250 1,764,157 1,946,250 N/A BEGINNING FUND BALANCE, Jan 1 3,154,954 5,159,035 5,159,035 2,004,081 ‐ 100.00% ENDING FUND BALANCE, Mar 31 3,337,047$ 5,159,035$ 7,105,285$ 3,768,238$ 1,946,250$ 137.73% TRANSPORTATION IMPACT MITIGATION VARIANCE FAVORABLE (UNFAVORABLE) 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 777,111$ 2,300,000$ 702,523$ (74,588)$ (1,597,477)$ 30.54% Investment Earnings 3,496 ‐ 3,600 104 3,600 N/A TOTAL REVENUES 780,607 2,300,000 706,123 (74,484) (1,593,877) 30.70% EXPENDITURES: TOTAL EXPENDITURES ‐ ‐ ‐ ‐ ‐ N/A Transfers In ‐ ‐ ‐ ‐ ‐ N/A Transfers Out ‐ 5,579,996 ‐ ‐ 5,579,996 0.00% NET TRANSFERS ‐ (5,579,996) ‐ ‐ 5,579,996 0.00% CHANGE IN FUND BALANCE 780,607 (3,279,996) 706,123 (74,484) 3,986,119 ‐21.53% BEGINNING FUND BALANCE, Jan 1 2,042,269 4,508,117 4,508,117 2,465,848 ‐ 100.00% ENDING FUND BALANCE, Mar 31 2,822,876$ 1,228,121$ 5,214,240$ 2,391,364$ 3,986,119$ 424.57% REET 1 VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 13 of 28 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. 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. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Taxes 777,111$ 2,300,000$ 702,522$ (74,589)$ (1,597,478)$ 30.54% Investment Earnings 4,933 ‐ 6,838 1,905 6,838 N/A TOTAL REVENUES 782,044 2,300,000 709,360 (72,684) (1,590,640) 30.84% EXPENDITURES: TOTAL EXPENDITURES ‐ ‐ ‐ ‐ ‐ N/A Transfers In ‐ ‐ ‐ ‐ ‐ N/A Transfers Out ‐ 9,921,118 ‐ ‐ 9,921,118 0.00% NET TRANSFERS ‐ (9,921,118) ‐ ‐ 9,921,118 0.00% CHANGE IN FUND BALANCE 782,044 (7,621,118) 709,360 (72,684) 8,330,478 ‐9.31% BEGINNING FUND BALANCE, Jan 1 3,411,866 8,773,145 8,773,145 5,361,279 ‐ 100.00% ENDING FUND BALANCE, Mar 31 4,193,910$ 1,152,027$ 9,482,505$ 5,288,595$ 8,330,478$ 823.11% REET 2 VARIANCE FAVORABLE (UNFAVORABLE) 2021 2022 2022 YTD YTD ACTUAL ANNUAL YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 657,353$ 1,336,345$ 1$ (657,352)$ (1,336,344)$ 0.00% Charges for services 133,730 ‐ ‐ (133,730) ‐ N/A Sale of general fixed assets 80,000 ‐ ‐ (80,000) ‐ N/A Investment Earnings 30,200 162,840 12,633 (17,567) (150,207) 7.76% TOTAL REVENUES 901,283 1,574,185 12,634 (888,649) (1,561,551) 0.80% EXPENDITURES: Personnel 138,405 427,069 102,611 (35,794) 324,458 24.03% Contracted Services 18,420 490,922 28,357 9,937 462,565 5.78% Capital Outlay 335,909 30,810,142 786,776 450,867 30,023,366 2.55% TOTAL EXPENDITURES 492,734 31,728,133 917,744 425,010 30,810,389 2.89% Transfers In ‐ 13,331,683 ‐ ‐ (13,331,683) 0.00% Transfers Out ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ 13,331,683 ‐ ‐ (13,331,683) 0.00% CHANGE IN FUND BALANCE 408,549 (16,822,265) (905,110) (1,313,659) 15,917,155 5.38% BEGINNING FUND BALANCE, Jan 1 20,298,663 16,824,783 16,824,783 (3,473,880) ‐ 100.00% ENDING FUND BALANCE, Mar 31 20,707,212$ 2,518$ 15,919,673$ (4,787,539)$ 15,917,155$ 632234.83% MUNICIPAL FACILITIES CIP VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 14 of 28 Capital Improvement Fund This fund accounts for the City’s Transportation capital projects. 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. Note ‐ Additional funds designated for the Family First Center are being held in a fund with the Renton Community Foundation (Foundation). Those funds are not reflected in the City’s records as they are assets of the Foundation, not the City. The City is expected to receive these funds in May of 2022 and will be recorded as contribution revenue when received by the City. 2021 2022 2022 YTD YTD ACTUAL ANNUAL YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 3,181,248$ 27,663,621$ 2,862,104$ (319,144)$ (24,801,517)$ 10.35% Charges for services ‐ ‐ ‐ ‐ ‐ N/A Fines and penalties 12,837 ‐ (11) (12,848) (11) N/A Investment Earnings 22,911 ‐ 8,595 (14,316) 8,595 N/A TOTAL REVENUES 3,216,996 27,663,621 2,870,688 (346,308) (24,792,933) 10.38% EXPENDITURES: Personnel 13,933 81,000 52,352 38,419 28,648 64.63% Supplies ‐ 65,129 ‐ ‐ 65,129 0.00% Contracted Services 13,931 486,978 7,057 (6,874) 479,921 1.45% Capital Outlay 1,638,724 40,678,757 4,528,166 2,889,442 36,150,591 11.13% TOTAL EXPENDITURES 1,666,588 41,311,864 4,559,575 2,892,987 36,696,289 11.04% Transfers In ‐ 5,450,450 ‐ ‐ (5,450,450) 0.00% NET TRANSFERS ‐ 5,389,050 ‐ ‐ (5,450,450) 0.00% CHANGE IN FUND BALANCE 1,550,408 (8,259,193) (1,688,887) (3,239,295) 6,570,306 N/A BEGINNING FUND BALANCE, Jan 1 16,792,413 10,868,853 10,868,853 (5,923,560) ‐ 100.00% ENDING FUND BALANCE, Mar 31 18,342,821$ 2,609,660$ 9,179,966$ (9,162,855)$ 6,570,306$ 351.77% CAPITAL IMPROVEMENT VARIANCE FAVORABLE (UNFAVORABLE) 2021 2022 2022 YTD YTD ACTUAL ANNUAL YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental ‐$ 4,509,000$ 1,454,850$ 1,454,850$ (3,054,150)$ 32.27% Investment Earnings 11,132 ‐ 6,432 (4,700) 6,432 N/A TOTAL REVENUES 11,132 9,459,000 1,461,282 1,450,150 (7,997,718) 15.45% EXPENDITURES: Contracted Services ‐ ‐ 20,316 20,316 (20,316) N/A Capital Outlay 25,513 14,778,258 1,196,019 1,170,506 13,582,239 8.09% TOTAL EXPENDITURES 25,513 14,778,258 1,216,335 1,190,822 13,561,923 8.23% Transfers In ‐ 3,000,000 ‐ ‐ (3,000,000) 0.00% NET TRANSFERS ‐ 500,000 ‐ ‐ (500,000) 0.00% CHANGE IN FUND BALANCE (14,381) (4,819,258) 244,947 259,328 5,064,205 N/A BEGINNING FUND BALANCE, Jan 1 8,356,704 8,238,935 8,238,935 (117,769) ‐ 100.00% ENDING FUND BALANCE, Mar 31 8,342,323$ 3,419,677$ 8,483,882$ 141,559$ 5,064,205$ 248.09% FAMILY FIRST CENTER VARIANCE FAVORABLE (UNFAVORABLE) Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 15 of 28 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. A listing of project balances for each Enterprise Fund is included, along with a reconciliation to the amounts reported as “Capital Outlay”. Airport Fund This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and maintenance of the Renton Municipal Airport. The lease revenues were previously classified as charges for services but are not being reflected in their own line item below. Charges for Services & Rents. Leases and Misc. fees – Increase over prior year primarily relates to the timing of payments received which includes four monthly rental payments from one large leasee ($142K) in the current year. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental ‐$ 229,240$ 2,862$ 2,862$ (226,378)$ 1.25% Charges for services 827,661 3,047,910 957,259 129,598 (2,090,651) 31.41% Interest and other misc 10,288 3,857 6,057 (4,231) 2,200 157.04% TOTAL REVENUES 837,949 3,281,007 966,178 128,229 (2,314,829) 29.45% EXPENSES: Personnel 257,617 1,442,366 272,326 (14,709) 1,170,040 18.88% Supplies 5,774 39,471 32,414 (26,640) 7,057 82.12% Contracted Services 79,516 1,037,468 168,690 (89,174) 868,778 16.26% Internal Services 100,067 401,957 100,489 (422) 301,468 25.00% TOTAL OPERATING EXPENSES 442,974 2,921,262 573,919 (130,945) 2,347,343 19.65% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 394,975 359,745 392,259 (2,716) 32,514 109.04% TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY 52,569 6,259,960 2,697 49,872 6,257,263 0.04% TRANSFERS OUT ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 342,406 (5,900,215) 389,562 47,156 6,289,777 N/A BEGINNING FUND BALANCE, Jan 1 7,558,405 7,741,751 7,741,751 183,346 ‐ 100.00% ENDING FUND BALANCE, Mar 31 7,900,811$ 1,841,536$ 8,131,313$ 230,502$ 6,289,777$ 441.55% Operating Reserve 216,784 223,124 223,124 AVAILABLE FUND BALANCE 7,684,027$ 1,618,412$ 7,908,189$ VARIANCE AIRPORT Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 16 of 28 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. Charges for Services – This account will fluctuate based on actual payments received for services. Due to the utility moratorium, all utilities revenues have been down during the pandemic. With the moratorium lifted in September of 2021, many prior balances were paid in full showing an increase from prior year. Contracted Services‐ Contracted services will fluctuate with the charges for services as this line item includes payment to the City’s garbage hauler as well as King County dump fees. Current year expenditures also have been impacted due to increase of prices from the garbage hauler consistent with increases in CPI. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental 62,807$ 313,136$ ‐$ (62,807)$ (313,136)$ 0.00% Charges for services 5,189,285 23,815,136 5,409,524 220,239 (18,405,612) 22.71% Interest and other misc 3,463 5,000 3,813 350 (1,187) 76.26% TOTAL REVENUES 5,255,555 24,133,272 5,413,337 157,782 (18,719,935) 22.43% EXPENSES: Personnel 115,590 778,226 137,432 (21,842) 640,794 17.66% Supplies 341 11,900 4,621 (4,280) 7,279 38.83% Contracted Services 4,154,577 23,734,075 4,375,818 (221,241) 19,358,257 18.44% Internal Services 80,262 308,556 77,139 3,123 231,417 25.00% TOTAL OPERATING EXPENSES 4,350,770 24,832,757 4,595,010 (244,240) 20,237,747 18.50% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 904,785 (699,485) 818,327 (86,458) 1,517,812 N/A TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY ‐ ‐ ‐ ‐ ‐ N/A TRANSFERS OUT ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 904,785 (699,485) 818,327 (86,458) 1,517,812 N/A BEGINNING FUND BALANCE, Jan 1 2,771,562 3,392,243 3,392,243 620,681 ‐ 100.00% ENDING FUND BALANCE, Mar 31 3,676,347$ 2,692,758$ 4,210,570$ 534,223$ 1,517,812$ 156.37% Operating Reserve 400,000 400,000 400,000 AVAILABLE FUND BALANCE 3,276,347$ 2,292,758$ 3,810,570$ SOLID WASTE VARIANCE Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 17 of 28 Golf Course Fund This fund accounts for revenues and expenses for administration, debt service, operation, capital improvements, and maintenance of the Maplewood Golf Course. Interest and other Misc. – Amount over prior year represents funds that were transferred and loaned to the golf course from the general fund to help pay for the new golf carts. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 428,492$ 2,170,763$ 423,369$ (5,123)$ (1,747,394)$ 19.50% Rents, leases, and misc fees 34,674 527,600 54,409 19,735 (473,191) 10.31% Interest and other misc 1,471 (122,192) 226,576 225,105 348,768 N/A TOTAL REVENUES 464,637 2,576,171 704,354 239,717 (1,871,817) 27.34% EXPENSES: Personnel 348,236 1,777,316 380,274 (32,038) 1,397,042 21.40% Supplies 53,211 321,704 43,226 9,985 278,478 13.44% Contracted Services 39,562 157,250 28,807 10,755 128,443 18.32% Internal Services 87,565 360,550 90,138 (2,573) 270,412 25.00% TOTAL OPERATING EXPENSES 528,574 2,616,820 542,445 (13,871) 2,074,375 20.73% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS (63,937) (40,649) 161,909 225,846 202,558 N/A DEBT SERVICE: Principal ‐ 36,774 3,664 (3,664) 33,110 9.96% Interest ‐ 1,740 188 (188) 1,552 10.80% TOTAL DEBT SERVICE ‐ 38,514 3,852 (3,852) 34,662 10.00% CAPITAL OUTLAY ‐ 427,410 16,167 (16,167) 411,243 3.78% TRANSFERS IN 17,025 652,661 ‐ (17,025) (652,661) 0.00% TRANSFERS OUT 17,025 72,200 ‐ 17,025 72,200 0.00% NET TRANSFERS ‐ 580,461 ‐ ‐ (580,461) 0.00% CHANGE IN FUND BALANCE (63,937) 73,888 141,890 205,827 68,002 192.03% BEGINNING FUND BALANCE, Jan 1 476,746 1,222,897 1,222,897 746,151 ‐ 100.00% ENDING FUND BALANCE, Mar 31 412,809$ 1,296,785$ 1,364,787$ 951,978$ 68,002$ 105.24% Operating Reserve 641,500 641,500 641,500 AVAILABLE FUND BALANCE (228,691)$ 655,285$ 723,287$ GOLF COURSE VARIANCE Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 18 of 28 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. Charges for Services – Utility revenues are recognized when received for budgetary purposes. A moratorium on disconnections for non‐payment has been in effect since March 2020 and was lifted in September of 2021. With the moratorium lifted in September of 2021, many prior balances were paid in full showing an increase from prior year. Interest and other Misc. – Decrease over prior year is directly related to a decrease in system development charges ($89K) and interest earned on the fund balance due to low interest rates. Personnel ‐ there was a decrease in personnel costs over the prior year due to 3 vacant positions that have yet to be all filled. The amount of personnel costs under budget is due to the budget assuming all positions would be filled for the entire year. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 3,748,189$ 18,449,435$ 3,896,634$ 148,445$ (14,552,801)$ 21.12% Rents, leases, and misc fees 51,334 136,591 50,823 (511) (85,768) 37.21% Interest and other misc 219,173 521,000 111,028 (108,145) (409,972) 21.31% TOTAL REVENUES 4,018,696 19,107,026 4,058,485 39,789 (15,048,541) 21.24% EXPENSES: Personnel 1,149,257 5,120,318 1,039,378 109,879 4,080,940 20.30% Supplies 181,484 885,876 245,004 (63,520) 640,872 27.66% Contracted Services 653,816 3,620,552 733,843 (80,027) 2,886,709 20.27% Internal Services 673,808 2,651,585 662,896 10,912 1,988,689 25.00% TOTAL OPERATING EXPENSES 2,658,365 12,278,331 2,681,121 (22,756) 9,597,210 21.84% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 1,360,331 6,828,695 1,377,364 17,033 (5,451,331) 20.17% DEBT SERVICE: Principal ‐ 1,556,117 ‐ ‐ 1,556,117 0.00% Interest ‐ 190,874 ‐ ‐ 190,874 0.00% TOTAL DEBT SERVICE ‐ 1,746,991 ‐ ‐ 1,746,991 0.00% CAPITAL OUTLAY 659,420 35,391,781 1,022,419 (362,999) 34,369,362 2.89% TRANSFERS OUT ‐ 18,868 ‐ ‐ 18,868 0.00% NET TRANSFERS ‐ (18,868) ‐ ‐ 18,868 N/A CHANGE IN FUND BALANCE 700,911 (30,328,945) 354,945 (345,966) 30,683,890 N/A BEGINNING FUND BALANCE, Jan 1 40,776,314 43,849,867 43,849,867 3,073,553 ‐ 100.00% ENDING FUND BALANCE, Mar 31 41,477,225$ 13,520,922$ 44,204,812$ 2,727,587$ 30,683,890$ 326.94% Restricted for Debt Service 1,394,050 1,394,050 1,394,050 Operating Reserve 1,624,606 1,614,304 1,614,304 AVAILABLE FUND BALANCE 38,458,569$ 10,512,568$ 41,196,458$ WATER UTILITY VARIANCE Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 19 of 28 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 – Wastewater charges increased from the prior year due to COVID‐19. Utility revenues are recognized when received for budgetary purposes. A moratorium on disconnections for non‐payment has been in effect since March 2020 and was lifted in September of 2021. With the moratorium lifted in September of 2021, many prior balances were paid in full showing an increase from prior year. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 18,375$ 62,422$ 33,579$ 15,204$ (28,843)$ 53.79% Charges for services 2,718,718 11,671,891 2,908,832 190,114 (8,763,059) 24.92% Fines and penalties 695 ‐ 56 (639) 56 N/A Interest and other misc 175,857 444,000 173,358 (2,499) (270,642) 39.04% TOTAL REVENUES 2,913,645 12,178,313 3,115,825 202,180 (9,062,488) 25.59% EXPENSES: Personnel 554,170 2,927,107 605,067 (50,897) 2,322,040 20.67% Supplies 16,040 73,842 14,767 1,273 59,075 20.00% Contracted Services 505,487 2,461,063 526,469 (20,982) 1,934,594 21.39% Internal Services 494,334 1,991,737 497,934 (3,600) 1,493,803 25.00% TOTAL OPERATING EXPENSES 1,570,031 7,453,749 1,644,237 (74,206) 5,809,512 22.06% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 1,343,614 4,724,564 1,471,588 127,974 (3,252,976) 31.15% DEBT SERVICE: Principal ‐ 624,400 ‐ ‐ 624,400 0.00% Interest ‐ 85,491 ‐ ‐ 85,491 0.00% TOTAL DEBT SERVICE ‐ 709,891 ‐ ‐ 709,891 0.00% CAPITAL OUTLAY 331,771 17,687,727 1,034,819 (703,048) 16,652,908 5.85% TRANSFERS OUT ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ 48,400 ‐ ‐ (48,400) 0.00% CHANGE IN FUND BALANCE 1,011,843 (13,624,654) 436,769 (575,074) 14,061,423 N/A BEGINNING FUND BALANCE, Jan 1 23,996,217 20,788,687 20,788,687 (3,207,530) ‐ 100.00% ENDING FUND BALANCE, Mar 31 25,008,060$ 7,164,033$ 21,225,456$ (3,782,604)$ 14,061,423$ 296.28% Restricted for Debt Service 661,227 661,227 661,227 Operating Reserve 913,756 914,224 914,224 AVAILABLE FUND BALANCE 23,433,077$ 5,588,582$ 19,650,005$ WASTEWATER UTILITY VARIANCE Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 20 of 28 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 – Utility revenues are recognized when received for budgetary purposes. With the moratorium lifted in September of 2021, many prior balances were paid in full showing an increase from prior year as well as increased rates set by King County. Contracted Services – January 2022 payment to King County Metro was paid in December 2021, current year figures will be only reflect 11 months of cost due to this difference in timing of payment. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 4,226,071$ 18,495,877$ 4,655,175$ 429,104$ (13,840,702)$ 25.17% Interest and other misc 5,872 ‐ 4,036 (1,836) 4,036 N/A TOTAL REVENUES 4,231,943 18,495,877 4,659,211 427,268 (13,836,666) 25.19% EXPENSES: Contracted Services 4,369,980 18,495,877 3,042,249 1,327,731 15,453,628 16.45% TOTAL OPERATING EXPENSES 4,369,980 18,495,877 3,042,249 1,327,731 15,453,628 16.45% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS (138,037) ‐ 1,616,962 1,754,999 1,616,962 N/A TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE (138,037) ‐ 1,616,962 1,754,999 1,616,962 N/A BEGINNING FUND BALANCE, Jan 1 4,729,749 3,764,012 3,764,012 (965,737) ‐ 100.00% ENDING FUND BALANCE, Mar 31 4,591,712$ 3,764,012$ 5,380,974$ 789,262$ 1,616,962$ 142.96% Operating Reserve 380,000 380,000 380,000 AVAILABLE FUND BALANCE 4,211,712$ 3,384,012$ 5,000,974$ KING COUNTY METRO VARIANCE Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 21 of 28 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 revenues vary significantly from year‐to‐year based on what grants have been awarded and the timing of grant expenditures and related reimbursement requests. Grant revenues are budgeted at 100% of the award at the time the grant agreement is finalized, and any amounts not received are carried forward each year until either 1) the grant funds are fully received or 2) the grant agreement expires. Charges for Services – Utility revenues are recognized when received for budgetary purposes. A moratorium on disconnections for non‐payment has been in effect since March 2020 and was lifted in September of 2021. With the moratorium lifted in September of 2021, many prior balances were paid in full showing an increase in month service fees from prior year. This increase was offset by a decrease in inspection fees of ($146K) from prior year. Interest and Other – an increase over prior year is primarily related to an increase in system development charges largely from work done at the Family First Center development site. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 10,500$ 50,962$ 5,967$ (4,533)$ (44,995)$ 11.71% Grants / intergovernmental 229,949 9,222,565 890,479 660,530 (8,332,086) 9.66% Charges for services 3,249,026 12,483,635 3,161,421 (87,605) (9,322,214) 25.32% Interest and other misc 99,013 5,306,821 209,370 110,357 (5,097,451) 3.95% TOTAL REVENUES 3,588,488 27,063,983 4,267,237 678,749 (22,796,746) 15.77% EXPENSES: Personnel 938,278 4,069,740 907,775 30,503 3,161,965 22.31% Supplies 25,264 177,267 21,858 3,406 155,409 12.33% Contracted Services 385,637 4,407,600 363,132 22,505 4,044,468 8.24% Internal Services 681,256 2,517,956 629,489 51,767 1,888,467 25.00% TOTAL OPERATING EXPENSES 2,030,435 11,172,563 1,922,254 108,181 9,250,309 17.21% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 1,558,053 15,891,420 2,344,983 786,930 (13,546,437) 14.76% DEBT SERVICE: Principal ‐ 510,000 ‐ ‐ 510,000 0.00% Interest ‐ 100,842 ‐ ‐ 100,842 0.00% TOTAL DEBT SERVICE ‐ 610,842 ‐ ‐ 610,842 0.00% CAPITAL OUTLAY 503,171 20,104,106 906,108 (402,937) 19,197,998 4.51% Transfers In ‐ 118,033 ‐ ‐ (118,033) 0.00% Transfers Out ‐ 118,033 ‐ ‐ 118,033 0.00% NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 1,054,882 (4,823,528) 1,438,875 383,993 6,262,403 N/A BEGINNING FUND BALANCE, Jan 1 21,610,356 21,682,758 21,682,758 72,402 ‐ 100.00% ENDING FUND BALANCE, Mar 31 22,665,238$ 20,645,168$ 23,121,633$ 456,395$ 2,476,465$ 112.00% Restricted for Debt Service 754,868 754,868 754,868 Operating Reserve 1,109,340 1,116,680 1,116,680 AVAILABLE FUND BALANCE 20,801,030$ 18,773,620$ 21,250,085$ SURFACE WATER UTILITY VARIANCE Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 22 of 28 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 reverses are accumulated in fund balance so that they are available to fund the replacement of the vehicle/equipment when the time comes. Interdepartmental Services – These charges are set based on expected monthly operating costs and an ongoing reserve for future replacements. In 2022, the reserve for 24 vehicles has been fully funded; no further reserve will be collected for these vehicles until they are replaced. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Charges for services 27,186$ ‐$ 28,489$ 1,303$ 28,489$ N/A Interdepartmental services 1,635,702 6,353,614 1,577,732 (57,970) (4,775,882) 24.83% Interest and other misc 8,329 12,000 30,798 22,469 18,798 256.65% TOTAL REVENUES 1,671,217 6,365,614 1,637,019 (34,198) (4,728,595) 25.72% EXPENSES: Personnel 276,350 1,300,414 274,121 2,229 1,026,293 21.08% Supplies 311,695 1,496,153 375,630 (63,935) 1,120,523 25.11% Contracted Services 59,272 133,166 64,540 (5,268) 68,626 48.47% Internal Services 7,977 30,768 7,692 285 23,076 25.00% TOTAL OPERATING EXPENSES 655,294 2,960,501 721,983 (66,689) 2,238,518 24.39% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 1,015,923 3,405,113 915,036 (100,887) (2,490,077) 26.87% TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY 115,671 3,657,417 ‐ 115,671 3,657,417 0.00% TRANSFERS IN ‐ 115,671 ‐ ‐ (115,671) 0.00% TRANSFERS OUT ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ 115,671 ‐ ‐ (115,671) 0.00% CHANGE IN FUND BALANCE 900,252 (136,633) 915,036 14,784 1,051,669 N/A BEGINNING FUND BALANCE, Jan 1 6,376,259 10,125,169 10,125,169 3,748,910 ‐ 100.00% ENDING FUND BALANCE, Mar 31 7,276,511$ 9,988,536$ 11,040,205$ 3,763,694$ 1,051,669$ 110.53% EQUIPMENT RENTAL VARIANCE Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 23 of 28 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. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 775,976$ 3,539,243$ 812,697$ 36,721$ (2,726,546)$ 22.96% Interest and other misc 85,388 22,000 136,565 51,177 114,565 620.75% TOTAL REVENUES 861,364 3,561,243 949,262 87,898 (2,611,981) 26.66% EXPENSES: Personnel 275,948 1,621,091 219,470 56,478 1,401,621 13.54% Supplies 30 6,956 ‐ 30 6,956 0.00% Contracted Services 672,718 2,706,973 754,213 (81,495) 1,952,760 27.86% TOTAL OPERATING EXPENSES 948,696 4,335,020 973,683 (24,987) 3,361,337 22.46% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS (87,332) (773,777) (24,421) 62,911 749,356 N/A TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY ‐ ‐ ‐ ‐ ‐ N/A Transfers In ‐ 152,772 ‐ ‐ (152,772) 0.00% Transfers Out ‐ 52,868 ‐ ‐ 52,868 0.00% NET TRANSFERS ‐ 99,904 ‐ ‐ (99,904) 0.00% CHANGE IN FUND BALANCE (87,332) (673,873) (24,421) 62,911 649,452 N/A BEGINNING FUND BALANCE, Jan 1 19,860,208 20,494,538 20,494,538 634,330 ‐ 100.00% ENDING FUND BALANCE, Mar 31 19,772,876$ 19,820,665$ 20,470,117$ 697,241$ 649,452$ 103.28% Operating Reserves 13,952,413 17,708,251 17,708,251 AVAILABLE FUND BALANCE 5,820,463$ 2,112,414$ 2,761,866$ INSURANCE VARIANCE Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 24 of 28 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. Supplies & Contracted ‐ The amount over prior year largely relates to the purchase of police body cameras. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Licenses and permits 51,853$ 150,000$ 55,591$ 3,738$ (94,409)$ 37.06% Interdepartmental services 1,608,975 6,578,379 1,644,595 35,620 (4,933,784) 25.00% Interest and other misc 28,209 7,000 2,871 (25,338) (4,129) 41.01% TOTAL REVENUES 1,689,037 6,735,379 1,703,057 14,020 (5,032,322) 25.29% EXPENSES: Personnel 711,094 3,589,049 771,556 (60,462) 2,817,493 21.50% Supplies 122,184 2,683,477 801,183 (678,999) 1,882,294 29.86% Contracted Services 398,225 3,026,807 831,362 (433,137) 2,195,445 27.47% TOTAL OPERATING EXPENSES 1,231,503 9,299,333 2,404,101 (1,172,598) 6,895,232 25.85% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 457,534 (2,563,954) (701,044) (1,158,578) 1,862,910 N/A TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY 9,435 1,608,171 13,336 (3,901) 1,594,835 0.83% TRANSFERS IN 3,598 2,791,322 1,410 (2,188) (2,789,912) 0.05% NET TRANSFERS 3,598 2,791,322 1,410 (2,188) (2,789,912) 0.05% CHANGE IN FUND BALANCE 451,697 (1,380,803) (712,970) (1,164,667) 667,833 N/A BEGINNING FUND BALANCE, Jan 1 3,939,941 3,653,455 3,653,455 (286,486) ‐ 100.00% ENDING FUND BALANCE, Mar 31 4,391,638$ 2,272,652$ 2,940,485$ (1,451,153)$ 667,833$ 129.39% INFORMATION TECHNOLOGY VARIANCE Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 25 of 28 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. Personnel ‐ The amount of personnel costs over prior year is primarily due to open positions in 2021; the positions that had been held vacant due to the pandemic have been filled to support the increase in staff back at the office and the reopening of city hall. Supplies ‐ The increase in supplies over prior year largely relates to the increase supplies needed to support the increase in staff back at city hall. These costs will level out to be more in line with pre‐pandemic figures. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 1,498,183$ 6,179,470$ 1,529,279$ 31,096$ (4,650,191)$ 24.75% Interest and other misc 431 4,000 519 88 (3,481) 12.98% TOTAL REVENUES 1,498,614 6,183,470 1,529,798 31,184 (4,653,672) 24.74% EXPENSES: Personnel 722,413 4,224,986 861,733 (139,320) 3,363,253 20.40% Supplies 57,911 331,400 166,477 (108,566) 164,923 50.23% Contracted Services 275,120 1,805,887 251,291 23,829 1,554,596 13.92% Internal Services 32,427 130,783 32,696 (269) 98,087 25.00% TOTAL OPERATING EXPENSES 1,087,871 6,493,056 1,312,197 (224,326) 5,180,859 20.21% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 410,743 (309,586) 217,601 (193,142) 527,187 N/A TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY ‐ ‐ ‐ ‐ ‐ N/A Transfers In ‐ 10,700 ‐ ‐ (10,700) 0.00% NET TRANSFERS ‐ 10,700 ‐ ‐ (10,700) 0.00% CHANGE IN FUND BALANCE 410,743 (298,886) 217,601 (193,142) 516,487 N/A BEGINNING FUND BALANCE, Jan 1 504,167 785,189 785,189 281,022 ‐ 100.00% ENDING FUND BALANCE, Mar 31 914,910$ 486,303$ 1,002,790$ 87,880$ 516,487$ 206.21% FACILITIES VARIANCE Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 26 of 28 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. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Interdepartmental services 288,684$ 1,216,600$ 296,650$ 7,966$ (919,950)$ 24.38% Interest and other misc 165 1,000 53 (112) (947) 5.30% TOTAL REVENUES 288,849 1,217,600 296,703 7,854 (920,897) 24.37% EXPENSES: Personnel 167,512 946,412 194,938 (27,426) 751,474 20.60% Supplies 5,236 55,432 9,688 (4,452) 45,744 17.48% Contracted Services 39,306 351,607 71,137 (31,831) 280,470 20.23% Internal Services 500 2,034 509 (9) 1,525 25.02% TOTAL OPERATING EXPENSES 212,554 1,355,485 276,272 (63,718) 1,079,213 20.38% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 76,295 (137,885) 20,431 (55,864) 158,316 N/A TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY ‐ ‐ ‐ ‐ ‐ N/A Transfers Out ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 76,295 (137,885) 20,431 (55,864) 158,316 N/A BEGINNING FUND BALANCE, Jan 1 151,624 141,517 141,517 (10,107) ‐ 100.00% ENDING FUND BALANCE, Mar 31 227,919$ 3,632$ 161,948$ (65,971)$ 158,316$ 4458.92% COMMUNICATIONS VARIANCE Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 27 of 28 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. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Premiums 3,061,839$ 13,417,329$ 3,195,131$ 133,292$ (10,222,198)$ 23.81% Interest and other misc 96,326 149,488 99,350 3,024 (50,138) 66.46% TOTAL REVENUES 3,158,165 13,566,817 3,294,481 136,316 (10,272,336) 24.28% EXPENSES: Personnel 77,283 375,034 81,493 (4,210) 293,541 21.73% Medical/Dental Claims 2,649,653 12,752,837 2,621,110 28,543 10,131,727 20.55% Supplies ‐ 7,500 ‐ ‐ 7,500 0.00% Contracted Services 133,336 514,456 135,974 (2,638) 378,482 26.43% Internal Services 20,044 83,731 20,933 (889) 62,798 25.00% TOTAL OPERATING EXPENSES 2,880,316 13,733,558 2,859,510 20,806 10,874,048 20.82% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 277,849 (166,741) 434,971 157,122 601,712 N/A TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 277,849 (166,741) 434,971 157,122 601,712 N/A BEGINNING FUND BALANCE, Jan 1 5,773,429 6,655,137 6,655,137 881,708 ‐ 100.00% ENDING FUND BALANCE, Mar 31 6,051,278$ 6,488,396$ 7,090,108$ 1,038,830$ 601,712$ 109.27% Insurance Reserves 3,774,249 3,774,249 3,774,249 AVAILABLE FUND BALANCE 2,277,029$ 2,714,147$ 3,315,859$ HEALTH INSURANCE VARIANCE Quarterly Financial Report City of Renton, Washington 1st Quarter 2022 Page 28 of 28 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. 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 Kari Roller at kroller@rentonwa.gov. 2021 2022 2022 YTD YTD ACTUAL ANNUAL BUDGET YTD ACTUAL PRIOR YEAR BUDGET % BUDGET REVENUES: Grants / intergovernmental ‐$ 50,067$ ‐$ ‐$ (50,067)$ 0.00% Premiums 656,171 2,640,000 656,171 ‐ (1,983,829) 24.85% Interest and other misc 39,043 20,000 43,451 4,408 23,451 217.26% TOTAL REVENUES 695,214 2,710,067 699,622 4,408 (2,010,445) 25.82% EXPENSES: Personnel 20,522 110,285 26,249 (5,727) 84,036 23.80% Medical/Dental Claims 238,191 1,312,693 271,323 (33,132) 1,041,370 20.67% Contracted Services 12,217 29,311 13,660 (1,443) 15,651 46.60% TOTAL OPERATING EXPENSES 270,930 1,452,289 311,232 (40,302) 1,141,057 21.43% AMOUNT AVAILABLE FOR DEBT SERVICE, CAPITAL, AND TRANSFERS 424,284 1,257,778 388,390 (35,894) (869,388) 30.88% TOTAL DEBT SERVICE ‐ ‐ ‐ ‐ ‐ N/A CAPITAL OUTLAY ‐ ‐ ‐ ‐ ‐ N/A NET TRANSFERS ‐ ‐ ‐ ‐ ‐ N/A CHANGE IN FUND BALANCE 424,284 1,257,778 388,390 (35,894) (869,388) 30.88% BEGINNING FUND BALANCE, Jan 1 16,541,245 18,188,260 18,188,260 1,647,015 ‐ 100.00% ENDING FUND BALANCE, Mar 31 16,965,529$ 19,446,038$ 18,576,650$ 1,611,121$ (869,388)$ 95.53% Insurance Reserves 16,965,529 19,446,038 18,576,650 AVAILABLE FUND BALANCE ‐$ ‐$ ‐$ RETIREE HEALTHCARE VARIANCE