TO The Log Foundation Members. 16 March 2009 RE

TO: The Log Foundation Members. 16 March 2009 RE: Annual Financial Report for 2008. A Attached are eight reports: - 01. Comparison for Years 2005 thru 2010. - 02. Prior Years vs 2008 - expense variance between the average of 2005-2007 and the actual of 2008. - 03. 2008 vs Next Year - expense variance between the actual of 2008 and the estimate of 2009. - 04. Water Usage Analysis for 2008. - 05. Rarey HB. - 06. Land Values. - 07. Rainy Day Fund – y/e 2008. - 08. Dock Statements. B Q&A. - Open. JMS treasurer estimated estimated 2010 38,412.76 01 - Comparison 2005 thru 201 > > Balance in Cash 2005 62,428.18 2006 69,563.44 2007 45,436.26 2008 110,426.16 2009 89,990.94 411 collections 499 other 912 transfer in from rainyday sub-total > Land Expenses 156,121.66 (440.00) 145,650.21 70,000.00 154,384.00 95,000.00 249,384.00 191,315.52 136,905.30 208,535.00 210,600.00 155,681.66 215,650.21 328,220.82 208,535.00 210,600.00 591 kc taxes 594 kc taxes, other 611 dnr lease 621 street use sub-total > Common Expenses 25,931.44 10.00 39,351.08 18,015.52 83,308.04 49,862.76 10.00 41,801.47 9,011.86 100,686.09 30,906.28 10.00 44,850.46 18,008.62 93,775.36 71,087.78 10.00 47,053.73 35,853.36 154,004.87 36% 24% 18% 77% 71,604.16 10.00 65,000.00 17,508.52 154,122.68 80,000.00 10.00 70,000.00 20,000.00 170,010.00 512 maintenance 531 sewer maintenance 541 city utilities 571 city light 581 insurance 631 dues 641 outside services 699 misc expenses sub-total 1,771.11 26,332.53 622.45 6,835.20 3,940.00 1,368.07 621.66 41,491.02 1,307.06 28,472.36 320.79 6,828.68 3,650.00 7,440.80 408.50 48,428.19 1,522.13 31,232.96 473.55 7,280.21 2,600.00 1,417.48 916.58 45,442.91 112.50 32,142.87 553.30 7,386.55 3,940.00 540.64 892.85 45,568.71 23% 612.50 33,600.00 588.00 7,450.00 3,640.00 1,500.00 900.00 48,290.50 700.00 34,200.00 624.00 7,600.00 3,640.00 1,500.00 960.00 49,224.00 >> Total Operating Expenses 124,799.06 149,114.28 139,218.27 199,573.58 100% 202,413.18 219,234.00 Page 1 of 2 Financal Comparison x1.xls Comparison 03/16/2009 estimated estimated 2010 01 - Comparison 2005 thru 201 > Dock Expenses 2005 2006 2007 2008 2009 821 dock, 2017 822 dock, 2019 823 dock, 2025 sub-total 190.75 46.99 3,514.60 3,752.34 395.39 608.81 2,633.64 3,637.84 709.55 1,844.98 431.71 2,986.24 1,037.57 710.44 1,166.38 2,914.39 900.00 900.00 900.00 2,700.00 900.00 900.00 900.00 2,700.00 > Other 87,025.27 42,189.59 20,000.00 20,000.00 87,025.27 42,189.59 11,280.68 84,887.39 50,000.00 146,168.07 55,000.00 55,000.00 842 boat-o-rarey 852 strom 2006 911 transfer out to rainyday sub-total >> >> Net cash flow Balance Out 7,130.26 69,563.44 (24,127.18) 45,436.26 64,989.90 110,426.16 (20,435.22) 89,990.94 (71,867.77) 18,123.18 (6,641.27) 27,078.76 Dock Balances dock, 2017 dock, 2019 dock, 2025 sub-total Log Net Balance 4,592.22 3,685.16 4,444.45 12,721.83 56,841.61 4,196.83 3,076.35 1,810.81 9,083.99 36,352.27 3,487.28 1,231.37 2,807.10 7,525.75 102,900.41 2,449.71 520.93 1,640.72 4,611.36 85,379.58 2,000.00 1,000.00 2,000.00 5,000.00 13,123.18 2,000.00 1,000.00 2,000.00 5,000.00 22,078.76 RainyDay 229,612.43 196,184.77 160,000.00 117,330.65 500,000.00 500,000.00 Page 2 of 2 Financal Comparison x1.xls Comparison 03/16/2009 02 - Prior Years vs 2008 3yr average 2005 - 2007 2008 varince > Land Expenses 35,566.83 10.00 42,001.00 * 15,012.00 92,589.83 71,087.78 10.00 47,053.73 15,012.00 133,163.51 40,574 30% 5,053 11% 35,521 50% 591 kc taxes 594 kc taxes, other 611 dnr lease 621 street use sub-total > Common Expenses 512 maintenance 531 sewer maintenance 541 city utilities 571 city light 581 insurance 631 dues 641 outside services 699 misc expenses sub-total >> Total Expenses * modified 943.06 590.37 28,679.28 472.26 6,981.36 3,396.67 3,408.78 648.91 45,120.71 137,710.54 653.14 32,142.87 553.30 7,386.55 3,940.00 892.85 45,568.71 178,732.22 (290) (590) 3,464 81 405 543 (3,409) 244 448 41,022 1% 23% Page 1 of 1 Financal Comparison x1.xls Variance PY - 2008 03/16/2009 The Log Foundation 03 - 2008 vs Next Year > Land Expenses 2008 2009 variance 591 kc taxes 594 kc taxes, other 611 dnr lease 621 street use sub-total * 71,087.78 10.00 47,053.73 17,508.52 135,660.03 71,604.16 10.00 65,000.00 17,508.52 154,122.68 516.38 17,946.27 18,462.65 1% 28% 12% > Common Expenses 653.14 32,142.87 553.30 7,386.55 3,940.00 892.85 45,568.71 181,228.74 612.50 33,600.00 588.00 7,450.00 3,640.00 1,500.00 900.00 48,290.50 202,413.18 51.04 2,800.00 49.00 620.83 303.33 125.00 75.00 2,721.79 21,184.44 6% 10% 512 maintenance 531 sewer maintenance 541 city utilities 571 city light 581 insurance 631 dues 641 outside services 699 misc expenses sub-total Total Expenses * modified 16 Mar 09 16 Mar 09 Average per month ----------------------------------------------------------------------------------------------- 04 - Water Usage Analysis - 20 Total QTR 1 QTR 2 QTR 3 QTR 4 2008 2007 2006 Gallons per Day per dock 2017 2021 2025 total % 2017 % 2021 % 2025 16,164 16,635 25,418 58,216 1,272 1,406 2,061 4,739 26.8% 29.7% 43.5% 1,016 1,240 1,739 3,995 25.4% 31.0% 43.5% 1,746 1,700 2,414 5,860 29.8% 29.0% 41.2% 1,354 1,199 2,258 4,811 28.1% 24.9% 46.9% 1,347 1,386 2,118 4,851 27.8% 28.6% 43.7% 1,675 1,387 2,009 5,072 33.0% 27.4% 39.6% 1,862 1,499 1,745 5,106 36.5% 29.4% 34.2% Gallons / Day per Houseboat 2017 2021 2025 16 18 18 80 78 115 64 69 97 109 94 134 85 67 125 84 77 118 105 77 112 116 83 97 Page 1 of 1 Financal Comparison x1.xls Water Analysis 2008 03/16/2009 16 Mar 09 05 - Rarey HB - year end 2008 date description 375.00 420.00 1,512.50 18,439.85 959.35 64,415.80 620.00 282.77 87,025.27 2,128.18 2,500.00 726.06 575.00 1,462.50 115.00 4,500.00 74.37 12,081.11 06 Mar 06 Professional appraisal 05 Apr 06 Legal research, PM 19 Jun 06 Professional survey, BR&H 06 Jul 06 30 Jul 06 Demolition, NW Con Deb Supervise, etc: SJMcF 05 Sep 06 Purchase & closing 13 Oct 06 Legal, PM 17 Oct 06 Personal Property Tax sub total 21 Apr 08 BR&H - survey & drafting 01 May 08 FP - trust 16 May 08 Personal Property Tax 19 Jun 08 BR&H - meeting & drafting 19 Jun 08 FP - communication w JMS & city 25 Aug 08 BR&H 09 Sep 08 FP - reserve for Permit Fees 31 Dec 08 City Light - year total sub total Estamated 2009 Remaining demolition Molly's houseboat Move fix up sub total Total -------------------------------- 10,000.00 20,000.00 15,000.00 10,000.00 55,000.00 154,106.38 16 Mar 09 06 - Land Values 2007 > TLG DNR City PP total > Willow 408880-2250 1,415,800.00 1,800,000.00 1,800,000.00 408880-2405-07 408880-2407-05 5,143,850.00 5,957,650.00 1,556,500.00 15,188,500.00 27,846,500.00 8,095,000.00 11,390,000.00 3,015,000.00 11,979,713.00 34,479,713.00 8,918,750.00 13,214,250.00 3,015,000.00 11,979,713.00 37,127,713.00 2,648,000.00 10% 823,750.00 1,824,250.00 16% 31% 2008 2009 YtoY Diff Tax Calculator The Log Foundation Land Value + Improvements Taxable Value Levy Rate General Tax Other Charges Total 5,143,850.00 5,143,850.00 9.27960 47,732.87 11.58 47,744.45 8,095,000.00 8,096,000.00 8.68790 70,337.24 12.24 70,349.48 8,918,750.00 8,918,750.00 7.97153 71,096.08 12.24 71,108.32 758.84 2% 823,750.00 822,750.00 (0.72) 758.84 Apr & Oct 23,872.23 35,174.74 35,554.16 379.42 Page 1 of 1 Financal Comparison x1.xlsLand Values 03/16/2009 07 - Rainy Day Fund - y/e 2008 31-Dec-07 > MSFT PCL PSD Stocks Microsoft 125@ 47.46 Plum Creek Timber 500@21.82 Puget Energy 250@19.8 total stocks ------------------------------------> TESIX FKINX Mutual Funds Mutual Series Franklin Income total mutual funds ----------------------------> > Cash Total Account Value 11,383.75 24,263.69 30,914.32 9,116.65 75,678.41 2,049.32 116,505.23 11,850.02 23,566.23 33,681.08 13,769.17 82,866.50 5,416.65 117,330.65 14% 28% 41% 17% 100% 71% 5% 100% 8,900.00 23,020.00 6,857.50 38,777.50 4,860.00 17,370.00 6,817.50 29,047.50 17% 60% 23% 100% 25% 31-Dec-08 Diff ytd % (4,040.00) (5,650.00) (40.00) (9,730.00) -45.4% -24.5% -0.6% -25.1% 466.27 (697.46) 2,766.76 4,652.52 7,188.09 3,367.33 825.42 4.1% -2.9% 8.9% 51.0% 9.5% 164.3% 0.7% TEPLX Templeton Growth Fund FRSTX Franklin Strategic Income Fund > 2008 cash transactions deposit withdrawl 50,475.99 50,475.99 50,475.99 > >> Net cash p&l without cash transactions Total Account Value 116,505.23 less net cash net without deposit from tlf 116,505.23 117,330.65 50,475.99 66,854.66 (49,650.57) -42.6% Page 1 of 1 Financal Comparison x1.xlsRainyDay 2008 03/16/2009 16 Mar 09 08 - Dock Statement 2017 deposit withdrawl balance 2006 13 Oct 06 SJMcF - water line repair 17 Nov 06 PG - lights 389.98 5.41 4,592.22 4,202.24 4,196.83 4,196.83 4,196.83 2006 Total ---------------------------------------------------- 395.39 4,196.83 2007 05 Apr 07 SJMcF - water line repair 20 Jun 07 Paris Plumbing - water line repair 29 Jun 07 Paris Plumbing - water line repair 03 Dec 07 Paris Plumbing - water line repair 370.22 108.89 117.91 112.53 4,196.83 3,826.61 3,717.72 3,599.81 3,487.28 3,487.28 3,487.28 2007 Total ---------------------------------------------------- 709.55 3,487.28 16 Mar 09 08 - Dock Statement 2019 deposit withdrawl balance 2006 06 Apr 06 MS - water pipe, stairs, light bulbs 13 Oct 06 MS - light fixtures and repair 17 Nov 06 TC - pressure washer for dock 245.86 261.76 101.19 3,685.16 3,439.30 3,177.54 3,076.35 3,076.35 3,076.35 2006 Total ---------------------------------------------------- 608.81 3,076.35 2007 08 Jan 07 BL - turnbuckle & cable 07 Feb 07 BV - dump fee, cleanup 12 Apr 07 JC - A-1 Rockey Landscape 20 Aug 07 WV - light bulbs 20 Aug 07 SL - hose 13 Nov 07 DG - garden cart etc 2007 Total ---------------------------------------------------58.53 15.20 1,360.00 23.82 43.44 343.99 1,844.98 3,076.35 3,017.82 3,002.62 1,642.62 1,618.80 1,575.36 1,231.37 1,231.37 1,231.37 16 Mar 09 08 - Dock Statement 2025 deposit withdrawl balance 2006 19 Jan 06 Andrea - landscaping 06 Mar 06 SMcF - dock meeting 05 Apr 06 Brigitte - plants 19 Apr 06 Andrea - landscaping 19 Apr 06 Brad - dump fee 19 Apr 06 JMcF - dock work party 13 Oct 06 JMcF - landscaping 13 Oct 06 Andrea - landscaping 17 Nov 06 GiaoN - landscaping 2006 Total ---------------------------------------------------168.45 63.02 174.28 688.22 24.74 662.13 149.16 203.64 500.00 2,633.64 4,444.45 4,276.00 4,212.98 4,038.70 3,350.48 3,325.74 2,663.61 2,514.45 2,310.81 1,810.81 1,810.81 1,810.81 2007 01 Aug 07 dock assessment 17@$84.00 10 Oct 07 GN - landscaping & irrigaton 10 Oct 07 SM - paint for safety stripe 27 Nov 07 BE - landscaping 1,428.00 91.46 47.87 292.38 1,810.81 3,238.81 3,147.35 3,099.48 2,807.10 2,807.10 2,807.10 2007 Total ---------------------------------------------------- 1,428.00 431.71 2,807.10