Docstoc

AB 4352 - City of Mercer Island

Document Sample
AB 4352 - City of Mercer Island Powered By Docstoc
					                                    City of Mercer Island
                            FINANCIAL STATUS REPORT
                              Through June 30, 2008


                                        FOREWORD

The Financial Status Report provides a summary budget to actual comparison of revenues and
expenditures for each fund through the end of the most recently completed fiscal quarter.
Revenue and expenditure comparisons are also made to the same period in the prior year. In
addition, a comprehensive progress update on the City’s Capital Improvement Program (CIP) is
included twice a year in the second and fourth quarter reports. The other two quarterly reports
include only a brief progress update, if deemed necessary, on key projects in the CIP. A
separate fund balance (or “working capital” for the utility funds) analysis for every fund is
included annually in the fourth quarter report as well. Finally, if needed, budget adjustments
are identified in a separate section of this report, along with an amending ordinance.

This report is comprised of the following five sections:

   •   General Fund
   •   Utility Funds
   •   All Other Funds
   •   Capital Improvement Program
   •   Budget Adjustments

It should be noted that, where significant, revenues are recognized when earned, regardless of
when cash is received, and expenditures are recognized when a liability has been incurred or
when resources have been transferred to another fund. Also, in the case of the General Fund,
the beginning fund balance, which corresponds to the Council approved “cash carryover” of net
excess resources from the prior year, is separately identified.




                                             AB 4352
                                             Exhibit 1
                                             Page 2
                                        GENERAL FUND

Overall, the General Fund continues to be in a solid financial position through the
second quarter of 2008, with total actual revenues outpacing and total actual expenditures
just under the 50 percent budget threshold, as described below. But, given the current
state of the regional economy (i.e. high inflation and a major downturn in development
activity and the real estate market) and with development fees down significantly
through the first half of this year compared to 2007, it’s possible that the development
boom in the Town Center might come to a halt by mid-year 2009, which would be
about a year sooner than projected.


Revenues
Comparing total actual to total budgeted revenues (i.e. excluding Beginning Fund Balance)
through June 30th, the General Fund is 54.0 percent of budget in 2008 versus 54.7 percent
of budget in 2007, primarily due to stronger than projected sales tax, utility tax, and
King County EMS levy receipts, as shown in the table below.


                                     GENERAL FUND: Revenues
                                    As of June 30, 2007 and 2008

                 Revenue                   Actuals                        Budget                % of Budget
                 Category           6/30/07       6/30/08          2007            2008        2007     2008
 Property Tax                        4,872,337       4,888,164     9,259,808       9,425,105    52.6%    51.9%
 Sales Tax                           1,833,039       2,049,991     2,650,000       2,789,076    69.2%    73.5%
 Utility Taxes                       1,705,430       1,759,341     3,032,000       3,238,000    56.2%    54.3%
 Water/Sewer Overhead                 358,000         369,700       716,000         739,400     50.0%    50.0%
 Intergovernmental Revenues           158,762         205,082       495,792         679,239     32.0%    30.2%
 Licenses, Permits & Zoning Fees     1,162,607        961,510      2,180,850       2,195,850    53.3%    43.8%
 Recreation Program Fees              425,319         523,783       966,540         972,140     44.0%    53.9%
 EMS Levy/Fees                        256,688         328,425       481,629         499,976     53.3%    65.7%
 Court Fines                          190,630         189,239       306,000         306,000     62.3%    61.8%
 Misc General Government              132,336         105,537       186,700         204,986     70.9%    51.5%
 Interest                             176,530         167,738       346,000         346,000     51.0%    48.5%
   Total Revenues                  11,271,678    11,548,510      20,621,319    21,395,772      54.7%    54.0%
 Beginning Fund Balance              1,719,212       2,921,669      340,876        2,471,219   504.4%   118.2%
   Total Resources                 12,990,890    14,470,179      20,962,195    23,866,991      62.0%    60.6%



Comparing 2008 to 2007, total actual revenues are up only $277,000, or 2.5 percent,
through the second quarter, mostly due to the net effect of an unexpected sales tax receipt,
moderate growth in recreation program fees, a huge hike in the King County EMS levy, modest
growth in utility taxes, and a significant drop in development-related fees.

                                                 AB 4352
                                                 Exhibit 1
                                                 Page 3
The following revenues are particularly noteworthy:

   •   Sales tax is 73.5 percent of budget in 2008 compared to 69.2 percent of budget in
       2007. Also, actual revenue is up almost $217,000, or 11.8 percent, compared to
       the same period last year. However, it should be noted that actual revenues in both
       years include unexpected receipts from two non-classified businesses
       amounting to $411,000 in 2007 and $453,000 in 2008. The City has received
       such payments in the past, but there is no discernible collection pattern. Accordingly,
       they can’t be predicted. Factoring out these extraordinary receipts, total actual
       revenue through June 2008 is up almost $175,000, or 12.3 percent, compared
       to the previous year. The following table compares 2007 and 2008 sales tax revenue
       through June and includes a breakdown by business sector.


                       Business               Revenue (Jan-Jun)           %                        % of Total
                        Sector                 2007          2008       Change      2007       2008     2007 Adj* 2008 Adj*
        Construction                            723,054       815,786      12.8%     39.4%      39.8%        50.9%        51.1%
        Retail & Wholesale Trade                317,162       322,581       1.7%     17.3%      15.7%        22.3%        20.2%
        Admin & Support Services                 56,537        74,970      32.6%       3.1%      3.7%         4.0%         4.7%
        Food Services                            74,902        76,372       2.0%       4.1%      3.7%         5.3%         4.8%
        Telecommunications                       55,491        60,571       9.2%       3.0%      3.0%         3.9%         3.8%
        Finance, Insurance & Real Estate         65,570        73,035      11.4%       3.6%      3.6%         4.6%         4.6%
        All Other Sectors                       540,323       626,676      16.0%     29.5%      30.6%         9.1%        10.8%
          Total                             1,833,039      2,049,991      11.8% 100.0% 100.0%              100.0%       100.0%

       * The "2007 Adj" and "2008 Adj" columns factor out $411,191 and $453,460 respectively in extraordinary receipts from "non-
         classified businesses," which were included in the "All Other Sectors" totals of $540,323 in 2007 and $626,676 in 2008.


       Significant sales tax growth (i.e. at least a 10% increase and a $10,000 increase)
       has been concentrated in the following business sectors: Construction;
       Administration & Support Services; and Repair and Maintenance (up almost
       $12,000, or 71.1 percent), which is included in All Other Sectors. Of particular note, the
       Construction sector was up 12.8 percent over last year primarily due to several
       large projects in the Town Center that are currently underway. In addition, the
       Construction sector continues to make up about half of the City’s total sales
       tax receipts, excluding the extraordinary receipts in 2007 and 2008. Based on what’s
       currently in the Development Services Group’s (DSG) pipeline, this unusually high
       level of construction-related sales tax is expected to continue through the
       first or second quarter of 2009.

   •   Utility taxes, which apply to private utilities only, are 54.3 percent of budget in
       2008 compared to 56.2 percent of budget in the prior year. Relative to 2007, actual
       revenue is up only $54,000, or 3.2 percent. This unusually modest growth rate can
       be wholly attributed to the electricity/gas utility (i.e. Puget Power), which
       lowered its gas rates 13.0 percent on average effective October 1, 2007. It should be
       noted that electricity/gas utility tax revenue was up 17.4 percent in 2007 and 15.5
       percent in 2006 through June. Continuing their streak of high growth rates are the


                                                          AB 4352
                                                          Exhibit 1
                                                          Page 4
    cable (i.e. Comcast) and cellular utility companies, which are up 10.4 percent
    and 9.7 percent respectively through June of this year. The table below compares
    utility tax revenues, which are broken down by type of utility, for 2006, 2007, and 2008
    as of June 30th.

          Utility                  Revenue (Jan-Jun)                     % Change
           Tax             2006           2007           2008         2007       2008
     Electricity/Gas        793,585        932,058        938,255      17.4%        0.7%
     Garbage                103,976        106,481        109,105        2.4%       2.5%
     Cable TV               203,975        229,483        253,434      12.5%       10.4%
     Telephone              109,692        103,367         99,680       -5.8%      -3.6%
     Cellular               255,843        291,125        319,315      13.8%        9.7%
     Long Distance            29,891        42,916         39,551      43.6%       -7.8%
       Total             1,496,962      1,705,430      1,759,341      13.9%        3.2%

•   Intergovernmental revenues are only 30.2 percent of budget in 2008 compared
    to 32.0 percent of budget last year. These revenues primarily consist of the liquor
    excise tax and liquor control board profits that are shared by the state, vessel
    registration fees that are received from King County via the state, and contract revenue
    for marine patrol services. The latter two revenues, which comprise almost 33.0 percent
    of what’s budgeted for intergovernmental revenues, won’t be received, or otherwise
    recognized, until December 2008.

•   Licenses, permits, and zoning fees are only 43.8 percent of budget in 2008
    compared to 53.3 percent of budget in 2007. Actual revenue is down $201,000, or
    17.3 percent, compared to the same period last year. This revenue category consists
    of all fees related to development, cable franchises, and business licenses. Of particular
    note, single family residential development is down significantly in 2008 after
    three very busy years as evidenced by a 33.2 percent drop in the number of
    single family residential building permits issued as of June 30, 2008 (i.e. 193
    permits) compared to the same period in 2007 (i.e. 289 permits). In addition, the total
    valuation associated with all building permits issued as of June 30, 2008 is down
    24.2 percent compared to the same timeframe in 2007. It is anticipated that two
    new permits will be filed for the development of the old Safeway site and
    phase 2 of the Mercer, but it is very possible that these two developments
    might be postponed given the current state of the economy.

    Prominent examples of commercial and mixed use developments that have
    contributed significant development-related fees in 2008 include the Aljoya House,
    which will open its doors in September, and the 7700 Central Condominiums and
    7800 Plaza Condominiums, which are both currently under construction.

    Finally, cable franchise fees continue to exhibit strong growth, with actual revenue
    up 10.4 percent over last year.




                                         AB 4352
                                         Exhibit 1
                                         Page 5
   •   Recreation program fees are 53.9 percent of budget in 2008 versus 44.0 percent
       of budget in the prior year. Compared to 2007, actual revenue is up about
       $98,000, or 23.2 percent primarily due to the following:

           o   Significant increase in ballfield user fees related to the South Mercer
               artificial turf field (which is reserved for the replacement of the artificial turf);
           o   Significant number of early registrations for “Youth and Teen Camps”;
           o   Significant increase in “CCMV Drop-In Sports” visits; and
           o   Significant increase in “CCMV Preschool Program” registrations.

   •   EMS levy/fees are 65.7 percent of budget in 2008 compared to 53.3 percent of
       budget in 2007. Also, actual revenue is up almost $72,000, or 27.9 percent,
       compared to the same period last year. Most of this increase can be attributed to
       a 53.7 percent hike in the King County EMS levy.

All other revenues are either within expected norms through the second quarter of the year or
too insignificant to highlight.


Expenditures
Comparing total actual to total budgeted expenditures through June 30th (excluding the transfer
of the prior year’s surplus), the General Fund is 49.0 percent of budget in 2008 versus 48.7
percent of budget in 2007. Simply put, expenditures are tracking very closely to budget. It is
more typical to be about 2.0 percent below the 50.0 percent budget threshold at this point in
the year. Actual and budgeted expenditures through June 30, 2007 and 2008 are shown in the
table below.




                                             AB 4352
                                             Exhibit 1
                                             Page 6
                                    GENERAL FUND: Expenditures
                                    As of June 30, 2007 and 2008

               Expenditure                  Actuals                        Budget                % of Budget
                Category             6/30/07        6/30/08         2007            2008        2007     2008
 Salaries & Wages                     5,475,119       5,774,484    11,039,589    11,682,994      49.6%    49.4%
 Benefits                             1,576,439       1,712,052     3,386,490       3,719,440    46.6%    46.0%
 Contractual Services                  633,933         808,737      1,743,279       2,041,828    36.4%    39.6%
 Supplies                              308,662         362,825       657,894         646,231     46.9%    56.1%
 Phone, Postage & Advertising           84,981          97,047       187,625         193,125     45.3%    50.3%
 Equipment Rental                      503,045         487,152      1,008,864       1,018,284    49.9%    47.8%
 Insurance                             441,836         522,307       458,975         471,475     96.3%   110.8%
 Utilities                             262,165         184,782       493,823         514,289     53.1%    35.9%
 Other Services & Charges              173,686         264,176       378,123         427,823     45.9%    61.7%
 Jail                                   78,144          53,305        98,000         187,000     79.7%    28.5%
 Intergovernmental Services            215,767         274,414       643,572         685,606     33.5%    40.0%
 Capital                                  3,377               0       10,750           8,500     31.4%    0.0%
 Transfer to Tech/Equip Fund           125,000         125,000       250,000         250,000     50.0%    50.0%
 Transfer to YFS Fund                  232,500         232,500       465,000         465,000     50.0%    50.0%
 Transfer to Computer Equip Fund        70,000          70,000        70,000          70,000       N/A   100.0%
   Subtotal                         10,184,654     10,968,781     20,891,984    22,381,595      48.7%    49.0%
 Transfer of Prior Year's Surplus              -      1,584,150       46,000        1,584,150    0.0%          N/A
   Total Expenditures               10,184,654     12,552,931     20,937,984    23,965,745      48.6%    52.4%



The following expenditures deserve to be highlighted:

        •    Salaries, which make up about 53.0 percent of the General Fund budget (excluding the
             transfer of the prior year’s surplus), are 49.4 percent of budget in 2008 relative to
             49.6 percent of budget in the previous year. More typically, salaries trail the 50.0
             percent budget threshold by 1.0-1.5 percent due to position vacancies, but there have
             been several significant things that have negated most of that savings in both
             years:

                o   Staff overtime in 2007 related to the December 2006 windstorm
                    aftermath;
                o   Firefighter overtime in 2007 related to the termination of a probationary
                    employee and extraordinary sick leave usage (i.e. for bereavement leave);
                o   Police overtime in 2007 related to a staffing shortage (i.e. down 3 officers
                    for much of 2007) and extraordinary sick leave usage (i.e. a child birth, a
                    surgery, and an injury); and
                o   Police overtime in 2008 related to a staffing shortage (i.e. down 2 officers
                    for most of the first half of 2008) and extraordinary sick leave usage (i.e. 3
                    significant injuries).



                                                   AB 4352
                                                   Exhibit 1
                                                   Page 7
•   Benefits, which comprise about 16.0 percent of the General Fund budget (excluding
    the transfer of the prior year’s surplus), are 46.0 percent of budget in 2008 versus
    46.6 percent of budget in 2007. This significant underage relative to the 50.0 percent
    budget threshold is mostly due to a change in the average demographic for each
    bargaining unit in terms of the employees and their dependents that are
    covered under the City’s medical and dental plans.

•   Contractual services, which total 8.0-9.0 percent of the General Fund budget
    (excluding the transfer of the prior year’s surplus), are only 39.6 percent of budget in
    2008 compared to 36.4 percent of budget in the prior year. This expenditure category
    includes software support, development and engineering support, recreation instructors,
    repairs and maintenance, and other professional services. It typically trails the 50.0
    budget threshold, because many services are contracted for during the
    second and third quarters of the year.

•   Insurance is 110.8 percent of budget in 2008 versus 96.3 percent of budget in the
    prior year mostly due to a much larger than anticipated increase in the City’s
    2008 liability insurance rate (i.e. almost $48,000 more than budgeted).

•   Transfer of prior year’s surplus represents that portion of the $2.31 million surplus
    in the General Fund at the end of 2007 that was approved by the Council to be
    distributed to other funds for various purposes. To date, $1.73 million has been
    approved by the Council to be transferred to other funds. Of the $2.31 million
    surplus, $166,519 hasn’t been committed to any purpose yet. A complete
    listing of the uses of the 2007 year-end surplus as well as when they were approved by
    the Council is provided in the following table.




                                        AB 4352
                                        Exhibit 1
                                        Page 8
         Uses of 2007 Year-End General Fund Surplus           Agenda Bill     Amount

        December 11, 2006 Meeting:

          Funding for one-time costs in 2008 budget            AB 4149           24,165

        November 5, 2007 Meeting:

          Establish stakeholder process for parks levy         AB 4233           73,866

        February 19, 2008 Meeting:

          Purchase biodiesel tank, dispenser, and fuel card    AB 4269           45,000
            reader (transfer to Equipment Rental Fund)

          Soil remediation work at Honeywell site (transfer    AB 4270          120,150
            to Equipment Rental Fund)

        April 7, 2008 Meeting:

          Abatement of dangerous home at 5075 WMW              AB 4284           85,000

        June 16, 2008 Meeting:

          Sewer lake line construction (transfer to Sewer      AB 4321         1,000,000
            Utility Fund)

          Funding for EMW Shoulders project in 2009-2010       AB 4321          250,000
            (transfer to Street Fund)

          LEOFF I long-term care reserve contribution          AB 4321          150,000

          NORCOM operations funding for 2012 (transfer         AB 4321          112,000
            to Technology & Equipment Fund)

          Jail contracts with Yakima County and Issaquah       AB 4321           89,000

          2008 sustainability work program                     AB 4321           60,000

          Contracted legal services (special issue work)       AB 4321           40,000

          Fire apparatus repair                                AB 4321           35,331

          Pioneer Park forest health survey (transfer to       AB 4321           35,000
             Capital Improvement Fund)

          Planned fire apparatus sinking fund contribution     AB 4321           22,000

        Remaining uncommitted balance                                           166,519

                                                                    Total   $ 2,308,031



All other expenditures are either within expected norms through the second quarter of the year
or too insignificant to highlight.




                                               AB 4352
                                               Exhibit 1
                                               Page 9
Projected 2008 Surplus
Looking forward, the 2008 General Fund surplus is projected to be about $1.0 million,
primarily due to the net effect of the following revenues:

   •   Extraordinary sales tax receipts ($453,000);
   •   All other sales tax receipts ($400,000 increase relative to budget, excluding the
       extraordinary receipts);
   •   Utility tax receipts ($250,000 increase relative budget);
   •   EMS levy/fees ($150,000 increase relative to budget);
   •   Recreation program fees, excluding ballfield user fees related to the South Mercer
       artificial turf field ($25,000 increase relative to budget);
   •   Court fines ($70,000 increase relative to budget); and
   •   Development-related fees ($350,000 decrease relative to budget).




                                           AB 4352
                                           Exhibit 1
                                           Page 10
                                         UTILITY FUNDS


Water Fund
The Water Fund’s operating loss (i.e. operating revenues less operating expenditures) as of
June 30, 2008 is about $118,000, which is significantly worse than the $70,000 operating loss
generated this time last year. It should be noted that posting a modest operating loss
as of mid-year is not unusual given that the high water usage months are July,
August, and September; however, an operating loss in excess of $50,000 at this
point in the year is usually indicative of an unusually wet and/or cool Spring (which
results in a reduction in water usage). See the summary of revenues and expenditures for the
Water Fund in the table below.


                                WATER FUND: Revenues and Expenditures
                                     As of June 30, 2007 and 2008

                                            Actuals                        Budget                 % of Budget
              Category               6/30/07       6/30/08          2007            2008         2007     2008
 Operating Revenues:
  Charges for Services                1,326,446       1,284,478     3,602,545       3,871,881     36.8%    33.2%
    Total Operating Revenues         1,326,446     1,284,478       3,602,545     3,871,881       36.8%    33.2%
 Operating Expenditures:
  Water Purchased for Resale            595,323        551,688      1,620,000       1,650,000     36.7%    33.4%
  Maintenance & Operations              801,523        851,097      1,733,637       1,809,883     46.2%    47.0%
    Total Operating Expenditures     1,396,846     1,402,785       3,353,637     3,459,883       41.7%    40.5%
 Operating Income (Loss)               (70,400)     (118,307)       248,908         411,998      -28.3%   -28.7%
 Non-Operating Items:
  PW Trust Fund Loan Proceeds                  0              0             0        750,000        N/A     0.0%
  Water Connection Charges              134,111         90,918       499,250         249,625      26.9%    36.4%
  Interest                               36,697         21,199        54,690          64,910      67.1%    32.7%
  Debt Service                          (13,731)        (13,869)      (13,731)        (18,901)   100.0%    73.4%
  Capital Projects                     (307,561)      (116,898)    (1,105,558)   (1,612,354)      27.8%     7.3%
    Total Non-Operating Items         (150,484)       (18,650)     (565,349)     (566,720)       26.6%     3.3%
 Net Increase (Decrease)              (220,884)     (136,957)      (316,441)     (154,722)         N/A      N/A



Of particular note are the following:

   •    Charges for services are only 33.2 percent of budget in 2008 compared to 36.8
        percent of budget in the prior year. Trailing the 50.0 percent budget threshold is typical
        given that the high water usage months are in the summer, but the extent of this
        underage isn’t typical. Despite an average 2008 water rate increase of 8.8 percent,


                                                   AB 4352
                                                   Exhibit 1
                                                   Page 11
        actual charges for services are down almost $42,000, or 3.2 percent, in 2008
        relative to the prior year. As noted above, this can be wholly attributed to an
        unusually wet and cool Spring, which resulted in a 6.8 percent decrease in
        water usage compared to the same period in 2007.

   •    Water purchased for resale is only 33.4 percent of budget in 2008 compared to
        36.7 percent of budget in 2007 for the same reasons noted above under “charges for
        services”.

   •    Capital projects are only 7.3 percent of budget in 2008 compared to 27.8 percent
        of budget last year. This can be attributed to two factors. One, the construction
        season typically doesn’t begin until June. Two, the Emergency Water Well
        project, which represents over 70.0 percent of the water utility’s 2008 capital program,
        is on hold due to First Hill neighborhood concerns over the sale of a water
        utility property, which is the funding source for this project. See the Capital
        Improvement Program section of this report for detailed project information.


Sewer Fund
As of June 30, 2008, the Sewer Fund’s operating income is almost $600,000, which is
significantly higher than the almost $512,000 in operating income reported in 2007. See the
summary of revenues and expenditures for the Sewer Fund in the table below.


                                SEWER FUND: Revenues and Expenditures
                                     As of June 30, 2007 and 2008

                                            Actuals                        Budget                % of Budget
              Category               6/30/07       6/30/08          2007            2008        2007     2008
 Operating Revenues:
  Charges for Services                2,463,497       2,624,218     4,794,066       5,029,252    51.4%    52.2%
    Total Operating Revenues         2,463,497     2,624,218      4,794,066      5,029,252      51.4%    52.2%
 Operating Expenditures:
  METRO Sewer Charges                 1,408,261       1,439,034     2,834,000       2,834,000    49.7%    50.8%
  Maintenance & Operations              543,701        585,265      1,160,055       1,283,289    46.9%    45.6%
    Total Operating Expenditures     1,951,962     2,024,299      3,994,055      4,117,289      48.9%    49.2%
 Operating Income (Loss)              511,535         599,919       800,011         911,963     63.9%    65.8%
 Non-Operating Items:
  PW Trust Fund Loan Proceeds                  0             0              0       4,000,000
  Sewer Connection Charges                7,368          4,605              0              0      N/A      N/A
  Interest                              181,335        116,280       150,000         150,000    120.9%    77.5%
  Debt Service                         (408,018)      (410,932)      (408,018)    (1,018,716)   100.0%    40.3%
  Capital Projects                     (371,850)      (208,961)    (8,604,744)    (8,852,519)     4.3%    2.4%
    Total Non-Operating Items         (591,165)     (499,008)     (8,862,762)    (5,721,235)     6.7%     8.7%
 Net Increase (Decrease)               (79,630)       100,911     (8,062,751)    (4,809,272)     N/A      N/A



                                                   AB 4352
                                                   Exhibit 1
                                                   Page 12
The following are worth highlighting:

   •    Charges for services are 52.2 percent of budget in 2008 compared to 51.4
        percent of budget last year. Relative to 2007, actual charges for services are up
        almost $161,000, or 6.5 percent, due to the net effect of an 8.2 percent overall
        rate increase in 2008 and a 6.8 percent decrease in water consumption, which
        has impacted the “City” portion (i.e. not the METRO portion) of the sewer utility bill paid
        by the City’s “commercial” customers.

   •    Capital projects are only 2.4 percent of budget in 2008 compared to 4.3 percent
        of budget in the prior year, because the construction phase of the sewer lake line
        project, which constitutes about 85.0 percent of the sewer utility’s 2008 capital
        program, won’t be re-bid until the fourth quarter of this year. See the Capital
        Improvement Program section of this report for detailed project information.


Storm & Surface Water Fund
The Storm & Surface Water Fund’s operating income as of June 30, 2008 is about
$384,000, which is moderately higher than the $363,000 earned last year. See the summary
of revenues and expenditures for the Storm & Surface Water Fund in the table below.


                     STORM & SURFACE WATER FUND: Revenues and Expenditures
                                  As of June 30, 2007 and 2008

                                         Actuals                       Budget                % of Budget
                Category           6/30/07       6/30/08        2007            2008        2007     2008
 Operating Revenues:
  Charges for Services               727,058        726,698     1,414,100       1,491,875    51.4%    48.7%
  Grants                                     0             0            0         75,000      N/A     0.0%
    Total Operating Revenues        727,058        726,698     1,414,100     1,566,875      51.4%    46.4%
 Operating Expenditures:
  Maintenance & Operations           363,601        342,332      791,660         894,468     45.9%    38.3%
    Total Operating Expenditures    363,601        342,332      791,660         894,468     45.9%    38.3%
 Operating Income (Loss)            363,457        384,366      622,440         672,407     58.4%    57.2%
 Non-Operating Items:
  Fee in Lieu                         34,936         17,769       80,000          80,000     43.7%    22.2%
  Interest                            52,843         39,025       35,000          10,000    151.0%   390.3%
  Transfer from Other Funds                  0             0      85,000               0      0.0%     N/A
  Capital Projects                   (27,568)      (111,371)   (1,136,694)    (1,612,554)     2.4%    6.9%
    Total Non-Operating Items        60,211        (54,577)    (936,694)     (1,522,554)    -6.4%     3.6%
 Net Increase (Decrease)            423,668        329,789     (314,254)      (850,147)      N/A      N/A




                                                 AB 4352
                                                 Exhibit 1
                                                 Page 13
In particular, the following are noteworthy:

   •   Charges for services are 48.7 percent of budget in 2008 compared to 51.4
       percent of budget last year, because the originally adopted budget assumed a 5.5
       percent rate increase in 2008, which wasn’t ultimately approved. Instead, the 2007
       stormwater rates remained fixed for 2008. As a result, actual charges for
       services are flat this year compared to 2007.

   •   Maintenance and operations are only 38.3 percent of budget in 2008 relative to
       45.9 percent of budget last year, because the following is slated for the second half of
       the year: 1) contracted stormwater maintenance work (most of the $130,000
       budget); and 2) implementation of the National Pollution Discharge Elimination
       System (NPDES) Phase 2 permit ($75,000 budget).

   •   Capital projects are only 6.9 percent of budget in 2008 versus 2.4 percent of
       budget in 2007, because the construction season typically doesn’t begin until
       June. See the Capital Improvement Program section of this report for detailed project
       information.




                                               AB 4352
                                               Exhibit 1
                                               Page 14
                                    ALL OTHER FUNDS

Highly summarized revenue and expenditure information is displayed for all other funds in the
table below.


                           ALL OTHER FUNDS: Revenues and Expenditures
                                   As of June 30, 2007 and 2008

               Fund                      Actuals                      Budget                % of Budget
               Name               6/30/07       6/30/08        2007            2008        2007     2008
 Self Insurance Claim
    Revenues                           8,242              0      37,242          10,000     22.1%    0.0%
    Expenditures                      14,209              0      37,242          10,000     38.2%    0.0%
 Youth Services Endowment
    Revenues                           7,819          4,787      15,000          16,000     52.1%    29.9%
    Expenditures                            0             0      15,000          16,000     0.0%     0.0%
 Street
    Revenues                         819,647       1,997,022   1,431,586       2,198,730    57.3%    90.8%
    Expenditures                     172,761        624,219    3,305,653       4,431,078    5.2%     14.1%
 Criminal Justice
    Revenues                         272,466        327,860     541,700         561,900     50.3%    58.3%
    Expenditures                     214,339        378,073     514,715         722,399     41.6%    52.3%
 Beautification
    Revenues                          73,245         77,793     330,000         334,000     22.2%    23.3%
    Expenditures                     111,632        112,747     675,294         329,200     16.5%    34.2%
 I-90 Landscape Maintenance
    Revenues                         202,895        210,801     448,884         473,556     45.2%    44.5%
    Expenditures                     178,252        201,484     481,443         502,990     37.0%    40.1%
 Contingency
    Revenues                          50,541         32,160     100,686         105,721     50.2%    30.4%
    Expenditures                            0             0            0              0      N/A      N/A
 Municipal Arts
    Revenues                                0             0     101,000         109,000     0.0%     0.0%
    Expenditures                            0         3,275       5,000          65,000     0.0%     5.0%
 Youth & Family Services
    Revenues                         777,967        817,345    1,567,147       1,664,661    49.6%    49.1%
    Expenditures                     781,126        852,314    1,689,381       1,838,991    46.2%    46.3%
 Bond Redemption (Voted)
    Revenues                         346,093        218,664     666,576         666,576     51.9%    32.8%
    Expenditures                      39,461         20,731     823,927         656,463     4.8%     3.2%




                                                AB 4352
                                                Exhibit 1
                                                Page 15
                       ALL OTHER FUNDS: Revenues and Expenditures (Cont'd)
                                   As of June 30, 2007 and 2008

                Fund                       Actuals                      Budget                % of Budget
                Name                6/30/07       6/30/08        2007            2008        2007     2008
 Bond Redemption (Non-Voted)
   Revenues                           227,094         224,238     367,333         366,496     61.8%    61.2%
   Expenditures                       227,094         224,238     367,333         366,496     61.8%    61.2%
 Capital Improvement
   Revenues                          1,174,701        907,088    1,796,100       2,606,359    65.4%    34.8%
   Expenditures                       528,678        2,082,901   3,643,637       4,931,708    14.5%    42.2%
 Technology & Equipment
   Revenues                           125,000         237,000    2,336,000        264,830      5.4%    89.5%
   Expenditures                        72,428         132,698    2,907,669        659,723      2.5%    20.1%
 Capital Reserve
   Revenues                           280,936          87,343     448,845         180,000      N/A     48.5%
   Expenditures                               0        83,452    1,320,000       1,160,452     0.0%    7.2%
 Community Center Construction
   Revenues                                   0             0            0              0      N/A      N/A
   Expenditures                        13,963         118,364     506,712         151,890      2.8%    77.9%
 Equipment Rental
   Revenues                           670,991         778,596    1,064,705       1,292,420    63.0%    60.2%
   Expenditures                      1,028,551       1,137,659   2,535,614       2,858,174    40.6%    39.8%
 Computer Equipment
   Revenues                           272,239         272,258     471,717         471,717     57.7%    57.7%
   Expenditures                       213,395         354,212     466,194         504,882     45.8%    70.2%
 Firemen's Pension
   Revenues                            50,681          41,343      72,000          72,000     70.4%    57.4%
   Expenditures                        27,667          29,573      71,500          82,500     38.7%    35.8%



In reviewing revenues and expenditures as of June 30th, the following funds warrant further
attention:

   •   Street Fund:
            o      Total actual revenues are up 143.6 percent in 2008 compared to the prior
                   year due to the net effect of the following: 1) transfer in of $1.4 million in
                   2007 surplus revenues from the General Fund and the Capital Improvement
                   Fund for the East Mercer Way Shoulders project; 2) STP grant ($726,000),
                   which is a funding source for the SE 40th Street Corridor Improvements project,
                   hasn’t been received yet; and 3) real estate excise tax receipts are down
                   about $214,000 this year due to a huge decline in the number of real
                   estate sales.



                                                  AB 4352
                                                  Exhibit 1
                                                  Page 16
       o   Total actual expenditures are only 14.1 percent of budget in 2008
           compared to 5.2 percent of budget in 2007. This is reflective of the
           construction season, which usually begins in June. Of particular note are
           the following projects: 1) the construction phase of the Town Center
           Streets—76th Avenue project ($1,043,830 budget vs. $314,196 actual)
           commenced in May and will be completed in August; 2) the construction phase
           of the SE 40th St Corridor Improvements project ($1,448,528 budget vs.
           $111,392 actual) began in late July; and 3) the North Mercer Way
           Resurfacing project ($500,000 budget vs. $1,844 actual) will be completed by
           the end of August. See the Capital Improvement Program section of this report
           for detailed project information.

•   Criminal Justice Fund:
       o   Total actual revenues are up 20.3 percent, or about $55,000, in 2008
           due to an unexpected receipt of $51,000 from the Eastside Narcotics
           Task Force (ENTF).

•   Beautification Fund:
       o   Total actual revenues are 23.3 percent of budget in 2008 compared to
           22.2 percent of budget in 2007 due to a change in the quarterly filing
           threshold from $100,000 to $1,000,000 in annual gross receipts that took effect
           in 2006. As a result, about 98 percent of the City’s registered businesses
           now file an annual B&O tax return that isn’t due until January 31st of
           the following year. It should be noted that a new law regarding the “allocation”
           and “apportionment” of income for B&O tax purposes took effect on January 1,
           2008. Simply put, wholesale and retail sales of tangible personal property should
           be allocated to the “point of delivery” rather than the “point of sale”. In
           addition, income earned by “service” and “other” types of businesses should be
           apportioned using a two factor formula based on payroll and service income.
           Through June 30, 2008, there is no evidence of an impact to the City’s
           B&O tax revenues, but staff really won’t know until February 2009
           (given that most of the 2008 B&O tax revenues will be received in Jan 2009).
       o   Total actual expenditures are 34.2 percent of budget in 2008 compared
           to 16.5 percent of budget in the prior year, because the maintenance of
           medians and planters in the Town Center ($117,000 budget vs. $38,811
           actual) takes place during the summer months and the planned interfund
           transfer to the I-90 Landscape Maintenance Fund ($62,000 budget vs. $0
           actual) doesn’t occur until year-end.

•   Capital Improvement Fund:
       o   Total actual revenues are only 34.8 percent of budget in 2008 compared
           to 65.4 percent of budget in 2007 due to the following: 1) downturn in the real
           estate market resulting in a $394,000 drop in real estate excise tax
           receipts; 2) $403,000 in budgeted grant revenues haven’t been received
           yet; and 3) almost $73,000 from a King County parks levy won’t be
           received until the third quarter of the year.


                                       AB 4352
                                       Exhibit 1
                                       Page 17
           o   Total actual expenditures are 42.2 percent of budget in 2008 versus 14.5
               percent of budget last year primarily due to a $1.15 million transfer of 2007
               surplus REET revenue to the Street Fund for the East Mercer Way
               Shoulders project. More typically, actual expenditures are 15-25 percent of
               budget at this point in the year, because the construction season for many
               projects doesn’t begin until June as previously mentioned. See the Capital
               Improvement Program section of this report for detailed project information.

   •   Technology & Equipment Fund:
           o   Total actual expenditures are only 20.1 percent of budget in 2008 versus
               2.5 percent of budget in 2007 because of the following: 1) Network
               Administrator position was vacant for almost 3 months (which resulted in
               a temporary 50 percent staffing reduction); 2) Council Meeting Cable
               Broadcast equipment ($117,515 budget vs. $12,873 actual) was mostly
               purchased and installed in July; and 3) one-time technology and start-up
               costs related to NORCOM ($226,940 budget vs. $71,296 actual) will be
               spread over the next two years.

   •   Capital Reserve Fund:
           o   Total actual expenditures are only 7.2 percent of budget in 2008 versus
               0.0 percent of budget last year, because the $1.0 million designated by the
               Council for the Boy’s and Girl’s Club has not been spent yet.

All other variances are either within expected norms for the midpoint of the year or otherwise
too insignificant to highlight.




                                           AB 4352
                                           Exhibit 1
                                           Page 18
                       CAPITAL IMPROVEMENT PROGRAM

This section of the Financial Status Report includes a comprehensive overview of the City’s
capital improvement program (CIP), with a more detailed look at real estate excise tax receipts,
highlights of particularly notable projects, and a Project Management Report (see Exhibit 2),
which provides an update on the status of every CIP project.


Financial Overview
At this point, three quarters of the way through the 2007-2008 biennium, most of the projects
planned for the biennium have been started and about half are well underway or have been
completed. Of the projects that were slated for construction in 2008, about half of them are
just getting started as of June. In aggregate, CIP-related expenditures are 30.0
percent of the adopted biennial budget, which breaks down as follows:

   •   Capital Reinvestment Plan (CRP): 25 percent of biennial budget
   •   Capital Facilities Plan (CFP): 47 percent of biennial budget

These percentages are skewed by the Sewer Lake Line project (budgeted at $15.0 million),
which is on hold pending the results of the peer review and design analysis, and by the $1.0
million that is designated for the Boy’s and Girl’s Club. Excluding these two projects, CIP-
related expenditures are 49 percent of the biennial budget, which breaks down as
follows:

   •   Capital Reinvestment Plan (CRP): 47 percent of biennial budget
   •   Capital Facilities Plan (CFP): 54 percent of biennial budget

About $40.8 million in projects (including $15.0 million for Sewer Lake Line construction, $6.4
million for street projects, and $1.0 million for the Boy’s & Girl’s Club) were planned for the
biennium. On average, CIP projects are 55 percent complete relative to a 75.0 percent
target, primarily reflecting delay in the construction of the Sewer Lake Line project.

Real Estate Excise Tax (REET)

REET is the 0.5 percent tax paid by the seller in property transactions, and its use is restricted
by state law for specific capital purposes. REET is the largest revenue source in the Capital
Improvement Fund, which pays for reinvestment in City buildings, parks, and open space. In
addition, REET provides about half of the funding in the Street Fund.

Looking at actual receipts, REET is down almost $550,000, or 35.5 percent, through
June 2008 compared to last year mostly due to a 40 percent decline in home sales (142
sales as of June 2008 vs. 234 sales as of June 2007). For 2008, REET revenue is projected
to hit $2.2 million, which is $432,000 below the budgeted amount, as illustrated in the
graph below. However, with actual REET revenue exceeding budget by $621,000 in 2007 and
with the recent sale of Island Square, which generated $555,000, there is no need to delay

                                             AB 4352
                                             Exhibit 1
                                             Page 19
any projects in the adopted 2007-2008 CIP budget. Below is a graph of the City’s
historical REET revenues from 1997 through 2007 as well as budgeted vs. forecasted REET
revenues for 2008.


                                                  REET Revenue
                              1997-2007 Historical and 2008 Budgeted vs. Forecasted


 $3,500,000
                                                                                                                                                        2 ,9 3 0 ,2 7 4
                                                                                                                                      2 ,7 8 3 ,5 6 7
 $3,000,000
                                                                                                            2 ,5 0 4 ,0 5 4
                                                                                                                                2 ,7 0 8 ,6 5 5
 $2,500,000                                                                                                                                                       2 ,6 3 2 ,0 0 0
                                    1,9 7 0 ,7 8 8
 $2,000,000                                                                                                                                                          2 ,2 0 0 ,0 0 0
                     1,6 12 ,7 18
                                                                                                     1,8 3 0 ,0 0 0
 $1,500,000
                                               1,6 2 1,6 5 5                         1,5 0 6 ,17 6
                 1,2 7 1,3 16
 $1,000,000                                                    1,17 3 ,0 9 5

   $500,000

        $0
              1997        1998      1999             2000       2001            2002           2003           2004            2005        2006            2007             2008

                                                                    A c t ua l a nd B udge t
                                                                    F o re c a s t




REET can be a volatile revenue source as its base (home sales) is highly dependent on
economic conditions and interest rates. Amidst low interest rates, REET receipts hit consecutive
all time highs in 2005 (excluding the $1.0 million in extraordinary REET revenue from the sale
of several commercial properties), 2006, and 2007, as displayed in the graph above.
However, in 2008, the number of real estate sales has plummeted, after declining
significantly in 2007, as noted in the table below. Consequently, staff has adjusted its 2008
REET forecast twice to reflect the downturn in the real estate market—the first time in March
2008 as part of the 2009-2014 CIP Budget Kick-Off presented to Council, and the second time
in August 2008 as part of this report.

Surprisingly, the most recent REET forecast for 2008 is the same as the March 2008
forecast of $2.2 million, despite the precipitous drop in the number of sales from 441 in
2007 to an estimated 241 in 2008. What has made up the difference are the following:
1) an increase in the average sales price from $1.19 million in 2007 to $1.28 million
in 2008, and 2) the sale of Island Square and several high end (i.e. in excess of $5.0
million) residential homes. Below is a table which splits REET into residential sales that are
under or equal to $5.0 million and commercial/residential sales that are over $5.0 million for
2005-2008.




                                                                                AB 4352
                                                                                Exhibit 1
                                                                                Page 20
                                                   2005         2006         2007       2008(Mar)    2008(Aug)
                      Year:                        Actual       Actual       Actual      Forecast     Forecast
 Average Sales Price                             $      905   $      989   $    1,188   $ 1,100      $    1,282
 Change in Average Sales Price                         8.0%         9.3%        20.1%        -7.4%         7.9%
 Number of Sales                                        590          548          441         400           241
 REET Revenue from Residential Sales <= $5M      $    2,591   $    2,690   $    2,468   $ 2,200      $    1,545
 REET from Commercial/ Residential Sales > $5M   $    1,118   $       86   $      378   $     -      $      655
 Total REET Revenue                              $ 3,709       $ 2,776     $ 2,846      $ 2,200      $ 2,200



Project Highlights

Street Construction – North Mercer Way

On July 21, 2008 Council awarded a
construction contract to Lakeridge
Paving Company for resurfacing of
North Mercer Way between Island
Crest Way and 76th Avenue SE. Paving
work on North Mercer Way was
finished on the evening of August 15th.
Pavement markings were installed on
August 22nd. Traffic curbing, raising
utility castings to the new asphalt
surface, and final signal adjustments
are expected to be complete by the
end of August.

Road construction was completed in only four weeks, which was two weeks sooner than
anticipated. Major traffic disruptions (i.e. detours, intersection closures, and transit changes)
lasted only 7 days as a result on the contractor working longer hours to minimize impacts to
transit traffic around the Park and Ride facility.

Island Crest Trail

                                                              The Island Crest trail located along the
                                                              west side of Island Crest Way from SE 78th
                                                              Street to SE 71st Street is now open for
                                                              use. In June of this year, the City Council
                                                              directed staff to complete the Island Crest
                                                              Trail construction by Labor Day, and
                                                              appropriated an additional $35,000 to the
                                                              project, bringing the project budget to
                                                              $135,000. The half-mile-long trail formally
                                                              opened at the end of July. The construction
                                                              cost is expected to be well under the
                                                              approved budget.



                                                  AB 4352
                                                  Exhibit 1
                                                  Page 21
Staff also applied for and received funding from the King Conservation District for landscaping
along the trail. In June, City staff and neighbors met to discuss a landscaping design concept.
Landscaping design will proceed through August, with a presentation of the design to City
Council tentatively scheduled for Oct. 6th. Planting is scheduled to start around the end of
October.

This trail is a visible example of the community’s commitment to healthy lifestyles and to
reducing its carbon footprint.




                                            AB 4352
                                            Exhibit 1
                                            Page 22
                                        BUDGET ADJUSTMENTS

In the interest of administrative ease, a budget amending ordinance is prepared and submitted
to the Council quarterly, if needed, along with the Financial Status Report. Budget adjustments
are divided into three groups: 1) those previously approved by the Council but not formally
adopted via a budget amending ordinance; 2) new requests; and 3) carryover requests. The
second category typically encompasses financial housekeeping items, minor requests, and
unanticipated expenditures that the City had to incur and was unable to absorb within the
authorized budget.

Budget adjustments previously approved but not formally adopted via a budget amending
ordinance by the Council are summarized in the table below.

                                                          Agenda     Council     Budget                 Funding
    Fund        Dept             Description                Bill     Meeting      Year    Amount         Source
General        Parks & King County 4 Culture Grant for    AB 4349    9/2/2008     2008      $8,200 King County 4
               Rec     Arts Council Programs                                                       Culture grant

Street         DSG      Pedestrian & Bicycle Plan Update AB 4258     1/22/2008    2008     $75,000 Unapp. beginning
                                                                                                   fund balance

               Maint    East Mercer Way Phase 6 Design AB 4310       6/2/2008     2008     $75,000 Unapp. beginning
                        Project (Included in Adoption of                                           fund balance
                        6 Year TIP)

                        Island Crest Way/Merrimount       AB 4310    6/2/2008     2008    $541,000 Unapp. beginning
                        Improvements Project (Included                                             fund balance
                        in Adoption of 6 Year TIP)

                        SE 40th St. Improvements          AB 4318    6/16/2008    2008    $301,765 Unapp. beginning
                        Project (Bid Award)                                                        fund balance

                        2008 North Mercer Way Re-         AB 4333    7/21/2008    2008     $70,000 Unapp. beginning
                        Surfacing Project (Bid Award)                                              fund balance

Criminal       Police   Taser Funding                     AB 4335    7/21/2008    2008     $18,000 Unapp. beginning
Justice                                                                                            fund balance
                                                                                                   (2007 federal
                                                                                                   seizure money)

CCMV Bldg      Parks & Community Center Parking Lot       AB 4326    7/7/2008     2008     $43,570 Unapp. beginning
Construction   Rec     Repair                                                                      fund balance

Equipment      Fire     Authorization to Purchase 2 Used AB 4316     7/7/2008     2008    $260,000 Fire apparatus
Rental                  Maxi Pumpers & Make Minor                                                  sinking fund
                        Upgrades                                                                   balance


A budget amending ordinance is attached as Exhibit 3.




                                                         AB 4352
                                                         Exhibit 1
                                                         Page 23
                                           2007-2008 CIP - PROJECT MANAGEMENT REPORT (Biennium) --- Project Expenditures Reported as of 6/30/2008
                                                                               APPROVED                                     EST.
PROJECT                                                                          BUDGET       TOTAL EXPENDED % EXPEND     COMPLTN     % WORK
NUMBER                      PROJECT NAME                     PROJECT MANAGER   (2007-2008)      (as of 6/30/08) TO DATE     DATE     COMPLETE                                                                        PROJECT STATUS & COMMENTS




                                                                                                                               CAPITAL REINVESTMENT PLAN
                                                                                                                              PARKS, RECREATION AND OPEN SPACE
                                                                                                                                                Hazard trees where removed; the area was leveled, chipped and replanted by volunteers from Rotary. Other improvements included a new paver plaza, repairs
WP500B    Rotary Park - Council Special Project (2006 c-o)       M. Elde            $64,471          $64,343      100%     12/7/08    100%      to the concrete, trail improvements and planting new trees.
                                                                                                                                                Three information Kiosks and six pathway lights that lead you from the main parking lot to the administration building have been installed and are up and
WP503R    Luther Burbank Park Improvements (2006 c-o)            M. Elde            $71,932          $25,252       35% 10/15/08        90%      running. Three lights will be installed above all entrance doors to the building in late August.

WP504P    Island Crest Park Master Plan (2006 c-o)              P. Mayer            $18,000             $141        1%     12/08       2%       Anticipate late 2008 project initiation or defer to 2009 work plan item, following completion of Ballfield Use Analysis.
                                                                                                                                                12.3 acres of invasives removed, 3 ac. of ivy survival rings, 22.5 ac. of restoration maintained, '06 Hanukkah storm damage mitigation 100% completed, 1435
WP122R    Vegetation Management                                  P. West           $683,000         $360,039       53%     12/08       60%      trees and 875 shrubs planted winter '08; Bidding of '08 maintenance and new project work completed.
                                                                                                                                                Boat launch ticket machine was installed in October. New playground was installed in Area B of the Lid in December. Construction of portable toilet inclosure is
WP701R    I-90 Park Improvements                                 M. Elde            $89,000          $80,005       90%     12/08       90%      scheduled to happen in late 2008.
                                                                                                                                                This fund supported several projects, including infield repair at South Mercer Playfields, restroom fixture upgrades for southend parks, park furniture repair,
WP720R    Recurring Park Projects                               K. Kerner          $200,000         $119,482       60%     12/08       60%      Summer Celebration! signage and eagle scout projects at Groveland and Clarke Beaches.
                                                                                                                                                Playgrounds at Secret and First Hill replaced. Hazard trees removed from Secret Park. Turf rehab and vegetation management completed in Wildwood Park.
WP721R    Minor Park Repairs                                     M. Elde           $184,250         $138,075       75%     10/8/08     90%      Minor repairs to docks and railings at Groveland and Clarke planned for Fall 2008.
                                                                                                                                                Backstop has been replaced and fence repairs have been completed. Leveling of the field, irrigation and drainage upgrades and new turf will be completed by
WP801R    Lakeridge Field Renovation                             M. Elde            $54,000             $799        1%     12/08       15%      September by parks and school district staff. The field will open for use in the spring of 2009.


                                                                                                                          STREETS, PEDESTRIAN AND BICYCLE FACILITIES
                                                                                                                                                Pavement repairs on selected areas of East Mercer, West Mercer and Island Crest Ways were performed in July 2007. Remaining arterial preservation budget
WR110R    Arterial Streets Preservation                         C. Morris           $94,670          $46,454       49%     10/08       50%      will be used in summer 2008 on additional repair work, including crack sealing.
                                                                                                                                                In 2007, completed 8,700 LF of fog line and bike lane striping, repaired stop bars and crosswalks at major intersections in the Town Center and major arterials
WR111R    Pavement Markings                                    B. Sansbury          $40,000          $24,758       62%     12/08       50%      (ICW and N, E, W Mercer Ways). Waiting on contractor's schedule for 2008 work.
                                                                                                                                                Resurfacing work on two residential streets (SE 42nd Place and SE 71st Street) was performed in July 2007. Completed project was accepted by Council in
WR701R    Residential Street Preservation                       C. Morris          $286,060         $276,321       97%     10/07      100%      November 2007.
                                                                                                                                                Resurfacing of two substandard streets (portions of 64th Ave and SE 71st St) was performed in July 2007 as part of WR701R. Completed project was accepted
WR705R    Substandard Streets                                   C. Morris           $78,850          $76,318       97%     10/07      100%      by Council in November 2007. A third street (SE 87th) was resurfaced in September 2007.
                                                                                                                                                Resurfacing work on SE 68th was performed in July and entire project completed by Labor Day. Completed project was accepted by Council in November
WR710R    Arterial Street Preservation - SE 68th Overlay        C. Morris          $271,670         $210,768       78%     10/07      100%      2007.

WR515R    North Mercer Design / Arterial Street (2006 c-o)      C. Morris           $23,746           $5,406       23%      7/08      100%      Design work for North Mercer Way Resurfacing (Island Crest Way to 76th Avenue) completed in June 2008. Construction bids are due July 2, 2008.
                                                                                                                                                Design is complete (see project WR515R). Council authorized bidding in June and a contract is to be awarded in July. Construction is scheduled to occur in
WR711R
WR518R / North Mercer Way Resurfacing                           C. Morris          $500,000           $2,623        1%     10/08       0%       August and September 2008.
WR712R /                                                                                                                                        Project design and permitting complete, relocation of PSE poles at SE 40th underway, project bid and awarded to the Construct Co. Anticipate end of July 2008
WR713R SE 40th Street Corridor Improvements                     J. Weiser       $1,876,765          $237,865       13%      1/09       13%      for construction start.
                                                                                                                                                Data collection completed Feb. 2008. Community meeting held in April to present alternatives. Council study session held in May. During TIP process, Council
WR714R    ICW and Merrimount Traffic Improvements            A. Tonella-Howe        $85,000          $81,870       96%      8/08      100%      recommended pursuing the alternative to reconfigure the ICW corridor between SE 42nd and SE 53rd.
                                                                                                                                                In May during TIP process Council recommended alternative to reconfigure the ICW corridor between SE 42nd and SE 53rd to include 3-lane section with bike
WR714S    ICW Corridor Reconfiguration                       A. Tonella-Howe      $541,000                $0        0%     12/08       0%       lanes and improved pedestrian crossings. Began negotiation for consultant scope and fee.

WR715R    72nd Avenue Road Impvts- SE 24th to SE 32nd           J. Weiser          $503,000           $9,465        2%     12/09       2%       Identified outside firm to complete the design. Construction will follow completion of First Hill water improvements.
                                                                                                                                                Project rebuilds 76th from SE 27th to 3000 block with new curbs, sidewalks, and paving. Bids were received and a contract awarded in April. Construction
WR720R    Town Center Streets - 76th Avenue                     C. Morris       $1,171,830          $441,997       38%      9/08       50%      began in May. Project should be substantially completed by early August.
                                                                                                                                                Conceptual layout for signals and conduit is complete. Signal design will start in the fall. Council added construction of signals for next year in 2009-2014 TIP
WR721R    Town Center Traffic Signals                         P. Yamashita         $100,000           $1,913        2%     12/08       5%       adopted in June. Signals will be located on SE 27th St. at 77th Ave. SE and 78th Ave. SE.
                                                              P. Yamashita                                                                      Design work is 95% complete. Construction of plaza project will be completed by developers of 7700 Central and 7800 Plaza projects at their expense as part
WR522R    78th Avenue SE Town Center Plaza                      P. Mayer            $51,394          $41,055       80%     12/08       90%      of a negotiated agreement. Private development construction of plaza is expected to be in 2009.
                                                                                                                                                Design of guardrails in several locations on East Mercer Way is 90% complete. Design is being performed by King County. Project will be added to county-
WR730R    Guardrail Development                               P. Yamashita          $90,000           $6,370        7%     12/08       10%      wide guardrail installation project. Construction to be completed by end of 2008.



                                                                                                                                                                                                                                                                                                                    AB 4352
                                                                                                                                                                                                                                                                                                                    Exhibit 2
                                                                                                                                                                                                                                                                                                                    Page 24
                                           2007-2008 CIP - PROJECT MANAGEMENT REPORT (Biennium) --- Project Expenditures Reported as of 6/30/2008
                                                                         APPROVED                                     EST.
PROJECT                                                                    BUDGET       TOTAL EXPENDED % EXPEND     COMPLTN    % WORK
NUMBER                      PROJECT NAME               PROJECT MANAGER   (2007-2008)      (as of 6/30/08) TO DATE     DATE    COMPLETE                                                                             PROJECT STATUS & COMMENTS



                                                                                                                                         Construction of new asphalt shoulder from 4600 block to SE 53rd Place completed in October and November 2007. Council accepted completed project in
WR731R    EMW Shoulders - Phases 4 and 5                  C. Morris          $420,000         $390,949       93%     2/08      100%      February 2008.
                                                                                                                                         Project added as part of TIP adoption. The initial $75,000 is intended to allow staff to start design but is contingent on securing project management resources.
          EMW Shoulders - Phases 6 and 7 Design             TBD               $75,000               $0        0%     12/08      0%       No project management resources have been secured as of June 30th due to market conditions.
                                                                                                                                         A new "gap completion" pedestrian walkway was constructed along 84th Ave. SE from Lakeridge to SE 80th St. in 2007. 2008 funding of $35,000 was added to
WR740R    Pedestrian and Bicycle Facilities              N. Fairchild         $35,000          $33,872       97%     9/08      100%      the ICW Trail project (WR741R) per Council direction.
                                                                                                                                         Completed trail site preparation. Staff applied for King County Conservation landscaping grant, worked with neighborhood and volunteers for trail construction
WR741R    Island Crest Way Trail (SE 71st to 78th)        J. Weiser          $135,000          $59,296       44%     12/08      50%      and to participate in planting.

WR742R    72nd Avenue Trail - SE 24th to SE 32nd          J. Weiser          $137,000           $1,726        1%     12/09      1%       Identified outside firm to complete trail design. Project will be split into 2 phases with Phase I to be completed fall 2008, Phase II after waterline project in 2009.

WR750S    Intersections Analysis                         N. Fairchild         $30,000               $0        0%     12/08      0%       Project is on hold until the Transportation Planner position is filled.

WR751R    Mercerway Signage                              N. Fairchild          $5,000               $0        0%     12/08      0%       Project is on hold until the Transportation Planner position is filled.




                                                                                                                               GENERAL GOVERNMENT
                                                                                                                                         Landscaping improvements at front entry completed. HVAC upgrades to most critical units 90% completed. Security improvements to the Police Division in
WG101R    City Hall Building Repairs                      M. Olson           $202,000         $117,895       58%     12/08      50%      progress.

WG102R    Maintenance Building Repairs                    M. Olson           $198,000          $63,391       32%     12/08      40%      Park Team Space remodel 80% complete. Wood stairs between the bridge and building replaced with concrete steps.

WG103R    South Fire Station Building Repairs             M. Olson            $63,000          $34,126       54%     12/08      55%      Installation of used generator (from Community Center) in progress.
                                                                                                                                         In store surveillance system for building security completed and sales fixture purchases completed. Volunteer kitchen dishwasher purchased and installed.
WG104R    Thrift Shop Building Repairs                    M. Olson            $49,000          $10,692       22%     12/08      25%      Flooring repair/replacement in progress.
                                                                                                                                         Purchase and installation of larger sized (200 KW) emergency generator completed to be able to provide a fully operational emergency shelter at the CCMV.
WG105R    Community Center Building Repairs               M. Olson            $23,000          $60,776      264%     12/08      85%      See project XG320W for additional funding for generator project.

WG106R    North Fire Station Building Repairs             M. Olson            $49,000           $9,914       20%     12/08      20%      Internal signage upgraded. Essential dorm furnishings purchased and roof repairs made. Exterior painting in progress.

WG107R    Luther Burbank Admin Building Repairs           M. Olson           $128,000          $78,368       61%     12/08      50%      HVAC upgrade completed to improve air flow for heating and cooling. Lighting and kitchen improvements in progress.


WG110T    Computer Equipment Replacements                 M. Kaser           $260,000         $266,178      102%     12/08      95%      2007 replacments completed included 37 workstations, 4 servers, and 1 printer. In 2008, 3 servers and 30 workstations were replaced.
                                                                                                                                         Purchased a fixed asset accounting system, converted fixed asset records and implemented the new system. Development of new budget reports are in
WG113T    Financial System Enhancement                     F. Lake            $35,000           $5,268       15%     12/08      70%      process. Plan to upgrade software or main cash register system at City Hall in November 2008.

WG510T    Client Tracking System                         D. Franklin          $15,000             $170        1%     12/08      35%      Reviewed data package (off the shelf) most appropriate for YFS. Exploring funding options to allow for implementation by year's end.

WG514T    CRM / Disaster Recovery (2006 c-o)              M. Kaser            $12,500           $3,705       30%     12/08      0%       This project to develop a documented recovery plan has been incorporated into the City's technology operations planning and will not be implemented.
                                                                                                                                         Successfully installed fiber to Station 91, Thrift Store, and the MI School District Administration Building. As a result, the City is currently saving about $720 per
WG518T    Fiber to Remote Sites (2006 c-o)                M. Kaser            $49,235          $49,235      100%     10/07     100%      month in telecommunications cost.
                                                                                                                                         Equipment purchase and installation occurred late in 2006 in conjunction with construction of the Community Center. The final phase of implementation
WG531T    CCMV - Gov't TV Broadcast Equip (2006 c-o)      P. Mayer             $8,458           $8,536      101%     12/08     100%      (training on use of the cable broadcast equipment) was received in March 2007.
                                                                                                                                         Cable broadcasting equipment was ordered and received. Installation started. Previously purchased equipment was moved from CCMV to City Hall.
WG701T    Council Meeting Cable Broadcast                J. Johnston         $117,515          $12,873       11%     12/08      45%      Scheduled to broadcast first Council Meeting on July 21, 2008.

WG702T    Document Management                             M. Kaser            $70,000           $4,261        6%     12/08      40%      Procurement is near completion with contractual efforts under way. This project is ontime and on budget with expected implementation by October 1st.

WG705T    Network Upgrades                                M. Kaser            $70,000          $69,591       99%     12/08     100%      Implemented a standardized network that now supports both the City's data and voice networks.
                                                                                                                                         New orthophotography was captured Mar. 2007. Delivery of primary photography and derived layers (edge of road, driveway; building outlines) was delivered
WG706T    High Accuracy Orthophotos                       M. Onzay            $60,000          $41,056       68%     12/08     100%      Oct. 2007. Data review was completed Feb. 2008.



                                                                                                                                                                                                                                                                                                                   AB 4352
                                                                                                                                                                                                                                                                                                                   Exhibit 2
                                                                                                                                                                                                                                                                                                                   Page 25
                                          2007-2008 CIP - PROJECT MANAGEMENT REPORT (Biennium) --- Project Expenditures Reported as of 6/30/2008
                                                                         APPROVED                                     EST.
PROJECT                                                                    BUDGET       TOTAL EXPENDED % EXPEND     COMPLTN    % WORK
NUMBER                     PROJECT NAME                PROJECT MANAGER   (2007-2008)      (as of 6/30/08) TO DATE     DATE    COMPLETE                                                                        PROJECT STATUS & COMMENTS



                                                                                                                                         Implemented a Shoretel Voice over IP system. This new system takes advantage of the City's existing data infrastructure creating long term cost savings by not
WG707T     Phone System Replacement                       M. Kaser           $250,000         $250,076      100%     12/07     100%      having to maintain separate voice and data networks.

WG708T     Projection Equip. for Conference Room          M. Kaser            $15,000          $15,598      104%     9/07      100%      Equipped two additional conference rooms at City Hall with basic projection equipment to facilitate meetings and other conference room use.

WG709T     Technology Strategic Plan                      M. Kaser            $70,000          $71,519      102%     12/08     100%      The technology strategic plan is complete and has already assisted in budget planning and CIP project planning.

WG710T     Unified Address Database                       M. Onzay            $25,000          $28,602      114%     12/08     100%      The address database is complete. An address editing application has been integrated with the City's Geographic Information System (GIS).
                                                                                                                                         Preliminary research completed, conversion to service-based website navigation to be started in 2008. Staff is considering holding funds over until 2009-2010
WG711T     Website Redesign                               A. Spietz           $10,000               $0        0%     12/08      0%       biennium for new project in order to choose new website vendor.

WG712T     Web Based Park and Trail Map                   P. Mayer             $5,000           $3,239       65%     12/08      0%       Awaiting further web development work from eGov Alliance trail work group. Additional enhancements to web trail search engine due by Q4 2008.

                                                                                                                                         Sixteen of the 22 replacements scheduled for this year have been completed. Six replacements were deferred to a future biennium after it was determined they
WG130E     Vehicle Replacements                          G. Boettcher     $2,516,000        $1,789,179       71%     12/08     100%      were non-essential.

WG550R     Fuel Clean Up (2006 carry-over)               G. Boettcher        $432,771         $366,447       85%     12/08      90%      The fifth Compliance Monitoring Event Report was completed in April.

WG850R     Fleet Biodiesel Conversion                    G. Boettcher         $45,000               $0        0%     12/08      10%      A proposal for a 4000-gallon UL 2085 Firewall tank was received and is being evaluated.

                                                                                                                                         Audio and visual upgrades made to interview room. Additional equipment purchased includes new evidence storage lockers, a firearms trailer, storage
WG132E     Police Equipment                               E. Holmes           $48,000          $34,271       71%     11/08      95%      cabinets, office furniture, traffic vests and rifles.
                                                                                                                                         Purchases include Marine Patrol breathing apparatus, MP infrared, in-car video cameras, SECTOR e-ticket hardware. Still outstanding are purchases for the
WG132G     Equipment - Seizure Funded                     E. Holmes          $140,000         $104,705       75%     12/08      85%      crime scene photographer camera equipment and less-than-lethal SAGE replacements.
                                                                                                                                         Purchasd and installed AV equipment (smart board and electronic announcement system). Purchases of equipment for new fire trucks and vehicles,
WG131E     Fire Division Equipment                        C. Tubbs            $68,000          $11,492       17%     12/08      30%      emergency lighting upgrades and technology for meeting rooms are in process.

WG703T     EMAC Database                                  C. Tubbs             $7,000           $7,111      102%     12/08     100%      Replacement database of residential information for the Neighborhood Preparedness Program has been fully developed and will be deployed in 2008.
                                                                                                                                         28 SCBA's, new breathing air bottle refill station, and associated equipment and supplies were purchased. Training has been conducted and all SCBA
WG730E     Self Contained Breathing Apparatus (SCBA)      C. Tubbs           $300,000         $299,128      100%     12/07     100%      equipment has been placed in service.


                                                                                                                                     WATER UTILITY
                                                                                                                                         The draft 2008 WSP completed SEPA determination and agency review in Feb & March. Response to agency review comments and the 2nd reivew by the
WW101P     Water System Comp Plan                           R. Lin           $103,000         $100,943       98%     07/08      95%      DOH were complete by mid June. Final 2008 WSP scheduled for Council adoption in July.
                                                                                                                                         Current model update was completed at the end of 2007. A relatively small amount of water system improvements are anticipated in 2008. Therefore, little or
WW102P     Water Model and Fire Flow Analysis               R. Lin            $37,864          $23,437       62%     12/08      90%      no model updates are anticipated.

WW710R     Water Sys Improvements SE 40th                 J. Weiser          $116,915           $4,333        4%     01/08      4%       Construction to be completed in conjunction with the SE 40th Street Improvement project (WR712R). Contract awarded to Construct Co.
                                                                                                                                         Additional water modeling indicated that the fire flow capacity in the southeast quadrant of the Island is sufficient. As a result, this project was cancelled.
WW711R     Fire Flow Improvements - PRV at SE 68th          R. Lin             $7,000           $7,053      101%     12/08     100%      Funding of $180,000 was transferred to WW714R for the 76th Ave SE Water System Improvements.
                                                                                                                                         The construction of the First Hill Water System Improvements has been divided into 2 different scopes, with the majority of the work is delayed for a year.
WW712R     First Hill Booster Pump Station Upgrades         R. Lin            $30,000           $8,689       29%     09/08      0%       Subsquently the pump station upgrade has been rescheduled to 2010.
IFT402 /                                                                                                                                 Due to high contractor bid prices, this work has been completed by in-house staff. Staff anticipates completing at least 6 hydrant replacements by the end of
WW713R     Hydrants and Water System Components             R. Lin           $106,000          $37,025       35%     12/08      35%      2008.

WW714R 76th Ave SE Water System Improvements                R. Lin           $180,000         $156,962       87%     1/08      100%      All work for this contract completed in January. Retainage to the contractor was released in late April or early May.
                                                                                                                                         Negotiating scope of work and fees for design work. Anticipate start of design in July. $70K for design only was transferred from the Pump Station Upgrade
WW715R 72nd Ave SE Water System Improvements                R. Lin            $70,000             $232        0%     2/09       0%       project (WW712R). Construction planned for 2009.




                                                                                                                                                                                                                                                                                                           AB 4352
                                                                                                                                                                                                                                                                                                           Exhibit 2
                                                                                                                                                                                                                                                                                                           Page 26
                                           2007-2008 CIP - PROJECT MANAGEMENT REPORT (Biennium) --- Project Expenditures Reported as of 6/30/2008
                                                                            APPROVED                                     EST.
PROJECT                                                                       BUDGET       TOTAL EXPENDED % EXPEND     COMPLTN     % WORK
NUMBER                      PROJECT NAME                  PROJECT MANAGER   (2007-2008)      (as of 6/30/08) TO DATE     DATE     COMPLETE                                                                          PROJECT STATUS & COMMENTS




                                                                                                                                         SEWER UTILITY
                                                                                                                                             Design is complete. Project was advertised for bid in May 2007 with bid opening July 2, 2007. The two bids received were well above the engineers estimate.
WS110E    Sewer Lake Line Replacemt-Design (2006 c-o)     A. Tonella-Howe      $469,200          $423,645       90%     6/07       100%      The project will be reevaulated to determine if there are ways to reduce costs.
                                                                                                                                             Peer review completed the week of November 12th. The project design was validated with several additional items to be researched. Peer reivew findings
WS110F    Sewer Lake Line Design Analysis                 A. Tonella-Howe        $85,000         $104,845      123%      N/A       100%      discussed at Council planning session in Jan 2008. Final recommendations presented to Council in May.
                                                                                                                                             Lake line redesign began June 1, 2008. Planned scheduled milestones include plan review mid-September; contractor's forum early September; bid
WS110G    Sewer Lake Line Redesign / Rebid                A. Tonella-Howe      $484,000              $360        0%     12/08       1%       advertisment October; project award November/December.

WS110C    Sewer Lake Line Replacement-Construction        A. Tonella-Howe   $15,000,000           $32,379        0%      N/A        0%       Planned construction schedule: Pump station start January 2009, Lake line start July 2009.

WS330T    Sewer System Telemetry Improvements                T. Smith           $315,000          $19,441        6%     12/08       6%       Project ready to go out for bid but due to limited staffing resources this work will be delayed until 2009.
                                                                                                                                             This funding is reserved for emergency repairs and minor improvements to the sewer system. Refer to WS710R and WS710T for minor improvement project
WS710R    General Sewer System Improvements                  T. Smith           $113,000         $109,257       97%     12/08       9%       details.

WS710S     Sewer - Generator Replacement                     T. Smith           $105,000           $9,974        9%     2/08       100%      3 Propane Generators were replaced with 3 new Diesel units at Sewer Stations 15,16 & 19.

WS710T     Sewer System - Cleaning and Video Inspection      T. Smith           $192,000          $39,085       20%     12/08       20%      18.5 miles of sanitary sewer main have been cleaned, inspected & assessed for future repair considerations.


                                                                                                                                  STORM DRAINAGE UTILITY

WD524C    Basin #46a - 53rd Place (2006 carry-over)            F. Gu           $142,020           $10,347        7%     12/08       20%      Contract awarded to Earthwork Enterprise in June. Construction expected to be complete by end of July 2008.

WD526C    Basin #45b - Parkwood / Glenhome                     F. Gu            $485,000         $412,007       85%     12/07      100%      Stabilized watercourse, replaced side sewer line and constructed a gravel trail connecting EMW and SE 54th St. Project complete December 2007.

WD701R    Neighborhood Drainage Improvements                 C. Morris          $100,000          $19,924       20%     12/08       20%      Three small drainage projects completed to date. Two more projects are planned for construction in late 2008 (4800 88th Ave. and 2700 70 th Ave.)
                                                                                                                                             This funding is reserved for emergency repairs and small basin improvements to the Storm Water System. Refer to WD710S, WD710T, WD710U, and
WD710R    Storm Conveyance & Basin Replacements            P. Yamashita          $75,000           $2,140        3%     12/08       0%       WD710V for individual project details.

WD710S     Storm Basin Condition Assessments               P. Yamashita          $40,630          $21,814       54%     10/08       70%      Field evaluations were completed in the spring. First draft of written documentation scheduled for end of July. Final draft expected by end of September.
                                                                                                                                             Contract awarded to Earthworks Enterprise in June 2008. Construction expected to be complete by August, with planting and restoration to begin in October
WD710T     Thomas Center Basin Improvements                    F. Gu             $53,600           $8,931       17%     12/08       20%      2008.

WD710U     Storm Drain Culverts                                F. Gu            $150,000          $64,386       43%     12/08      100%      Two cross-culverts replaced under EMW, construction substantially completed in Dec. 2007. Punch list items completed in January 2008 .

WD710V     SE 65th Drain Pipe Design                           F. Gu             $20,000             $204        1%     12/08       5%       Further video inspection confirmed extent of pipe damage. Design to start in Fall-Winter 2008.

WD720R    Lakeview Highlands Basin 29                          F. Gu            $970,590         $107,563       11%     10/08       25%      Project awarded to OMA Construction. Construction started in June 2008. In-stream work anticipated to be complete in late August

WD721R    Sub-Basin 26 Phase 2                                 F. Gu             $50,000             $162        0%     12/08       0%       Consultant selection process will begin in fall 2008.



          CAPITAL REINVESTMENT PLAN TOTAL                                   $32,757,936        $8,279,698       25%


                                                                                                                                 CAPITAL FACILITIES PLAN
                                                                                                                          PARKS, RECREATION AND OPEN SPACE

XP102P    Parks, Rec, Arts & Open Space Plan (2006 c-o)      P. Mayer             $7,500           $6,917       92%     12/08      100%      Plan completed early 2007. Plan was adopted by Council on Feb. 5, 2007 (Resolution No. 1384).

XP101A    Open Space and Park Property Acquisitions          P. Mayer           $200,000             $204        0%     12/08       0%       No potential acquisitions identified or referred to staff for review to date.


                                                                                                                                                                                                                                                                                                           AB 4352
                                                                                                                                                                                                                                                                                                           Exhibit 2
                                                                                                                                                                                                                                                                                                           Page 27
                                              2007-2008 CIP - PROJECT MANAGEMENT REPORT (Biennium) --- Project Expenditures Reported as of 6/30/2008
                                                                            APPROVED                                     EST.
 PROJECT                                                                      BUDGET       TOTAL EXPENDED % EXPEND     COMPLTN    % WORK
 NUMBER                        PROJECT NAME               PROJECT MANAGER   (2007-2008)      (as of 6/30/08) TO DATE     DATE    COMPLETE                                                                       PROJECT STATUS & COMMENTS




XP701R     South Mercer Playfields Ballfield Lights          J. Weiser          $330,239         $259,532       79%     4/08      100%      Field and track lighting work is complete, contractor preparing close-out documentation.
                                                                                                                                            Basework and artificial turf installation complete. Negotiations with contractor for basework regarding quantities of soils export and rock import are on-going.
XP702R     South Mercer Playfields Artificial Turf           J. Weiser          $755,830         $682,042       90%     11/07     100%      Anticipate will close out this project within budget.

                                                                                                                                            Minor improvements to Luther Burbank Park completed include boiler building area upgrades to support aquatics programming, entrance gate paving and path
XP710R     Luther Burbank Minor Park Improvements            K. Kerner          $208,000         $106,039       51%     12/08      51%      lighting improvements.

XP711R     Luther Burbank Off Leash Area (OLA)                M. Elde           $215,000          $11,618        5%     11/08      10%      Design work is complete. The project was bid and has been awarded to Pacific Earthworks. Work on the off leash area will begin in September.
                                                          A. Tonella-Howe
XP712R     Luther Burbank Shoreline Restoration               M. Elde        $1,090,000           $26,204        2%     11/08      10%      Design work is complete. The project was bid and has been awarded to Pacific Earthworks. Work on the shoreline will begin in August.

XP720R     King County Parks Levy Projects                   P. Mayer            $72,559               $0        0%     12/08      0%       Trail projects will be evaluated and designed in early 2009 and completed in the summer / fall 2008.
                                                                                                                                            Schematic design underway on 2 park plaza design options and near completion with probable costs of construction for each. Preparing for Council
XP721R     Town Center Plaza Water Feature                   P. Mayer            $22,000          $12,924       59%     12/08      90%      presentation in October 2008.


XG102C     PEAK / Boys and Girls Club (2006 carry-over)      R. Conrad       $1,000,000                $0        0%     12/08      0%       One million in Capital Reserve funds are designated for the PEAK project.
                                                                                                                                  GENERAL GOVERNMENT

 IFT343    Debt Service - Mercerview Property                 F. Lake           $434,000         $408,606       94%     12/08      75%      Debt Service on General Obligation Bonds for purchase of the Mercerview Property was paid through June 2008.

 IFT343    Debt Service - Community Center                    F. Lake           $303,000         $182,965       60%     12/08      75%      Debt Service on General Obligation Bonds for construction of the Community Center was paid through June 2008.

                                                                                                                                            Project accepted by Council on Sept. 4, 2007. Final construction related items identified (landscaping; dumpster screen; multi-purpose room floor; parking lot
XG320K     Community Center (CCMV) Building (2006 c-o)       P. Mayer          $207,867         $173,800       84%      12/08     100%      improvements; etc.) to be addressed for final project completion.
                                                                                                                                            Purchase and installation of larger sized (200 KW) emergency generator completed to be able to provide a fully operational emergency shelter at the CCMV.
XG320W     CCMV Emergency Shelter Generator                  M. Olson            $50,000          $50,538      101%     12/08     100%      See project WG105R for additional funding for generator project.

                                                                                                                                            Approx. 900 ft. of power lines and other associated utilities were undergrounded east of the Community Center at Mercer View along the Luther Burbank Park
XG320L     CCMV Power Lines / Luther Entry (2006 c-o)        P. Mayer            $34,034          $34,877      102%     12/08     100%      North entrance, improving both the views east from the center and the park entrance.
                                                                                                                                            Purchases from Senior donations for the CCMV include a variety of furnishings for the Senior Room at the Community Center as well as exercise equipment for
XG320M     CCMV Senior Improvements (2006 c-o)               P. Mayer            $50,700          $52,270      103%     12/08     100%      seniors (an eliptical, radiant, and upper body conditiong equipment).
                                                                                                                                            Purchases from 501c3 donations for the CCMV include a portable LCD projector for rentals, floor covering for dance room to protect from tap dance shoes,
XG320T     CCMV Equipment (Parks 501c3) (2006 c-o)           P. Mayer             $2,476           $2,043       83%     12/08     100%      computer equipment for security cameras in fitness room and lower level of CCMV.


XG150T     Small Technology and Equipment                    R. Conrad          $100,000          $56,451       56%     12/08      75%      Purchases from the Small Technology and Equipment account include new computing equipment and office furnishings.
                                                                                                                                            2 Pierce velocity pumpers, 1 Pierce mini pumper, and 1 pick up truck were purchased and placed in service. Phase 2 of this plan was authorized by Council in
XG710F     Fire Fleet Update                                 C. Tubbs        $1,287,008        $1,287,008      100%     12/08      75%      July 08 and the Fire Department is moving forward with aquistion of 2 used vehicles.
                                                                                                                                            Fencing and shelving was installed at the CCMV. Cabinets, reversible task boards, a white board and projection screen were installed in the City Hall EOC.
XG712E     Emergency Management Projects                    E. Holmes            $45,000          $22,373       50%     06/08     100%      The MIRO group upgraded to their system which further links the EOC and CCMV systems.

XG720T     NORCOM - Regional Dispatch                       E. Holmes           $250,000          $94,355       38%     12/08      62%      Procurement of the technology components and payment of start-up costs are on-going. Estimated completion of technology purchases is July 2009.

WW534C /                                                                                                                                    The Utility Board recommended staff pursue permanent above-ground facility and not proceed with an interim use facility. Design options were presented to
XW530R Emergency Water Supply Well                            R. Lin         $1,435,000          $319,572       22%     12/09      25%      Council in April. Council directed staff to begin permanent facility design.



           CAPITAL FACILITIES PLAN TOTAL                                     $8,100,213        $3,790,341       47%


           GRAND TOTAL (CRP + CFP)                                          $40,858,149       $12,070,039       30%

                                                                                                             52%                   55%



                                                                                                                                                                                                                                                                                                               AB 4352
                                                                                                                                                                                                                                                                                                               Exhibit 2
                                                                                                                                                                                                                                                                                                               Page 28
                                         CITY OF MERCER ISLAND
                                           ORDINANCE NO. 08-07

         AN ORDINANCE OF THE CITY OF MERCER ISLAND, WASHINGTON,
         INCORPORATING CERTAIN BUDGET REVISIONS TO THE 2007-2008
         BIENNIAL BUDGET, AND AMENDING ORDINANCE NOS. 06-17, 07-03,
         07-05, 07-08, 07-09, 07-13, 08-03, 08-04, AND 08-05.

WHEREAS, the City Council adopted the 2007-2008 Budget by Ordinance No. 06-17 on
December 11, 2006 representing the total for the biennium of estimated revenues and
expenditures for each of the separate funds of the City, and

WHEREAS, a number of budget adjustments have been approved by the City Council in 2008 in
open public meetings but have not been formally adopted via ordinance, as noted in the
following table, and

                                                          Agenda     Council     Budget                 Funding
    Fund        Dept             Description                Bill     Meeting      Year    Amount         Source
General        Parks & King County 4 Culture Grant for    AB 4349    9/2/2008     2008      $8,200 King County 4
               Rec     Arts Council Programs                                                       Culture grant

Street         DSG      Pedestrian & Bicycle Plan Update AB 4258     1/22/2008    2008     $75,000 Unapp. beginning
                                                                                                   fund balance

               Maint    East Mercer Way Phase 6 Design AB 4310       6/2/2008     2008     $75,000 Unapp. beginning
                        Project (Included in Adoption of                                           fund balance
                        6 Year TIP)

                        Island Crest Way/Merrimount       AB 4310    6/2/2008     2008    $541,000 Unapp. beginning
                        Improvements Project (Included                                             fund balance
                        in Adoption of 6 Year TIP)

                        SE 40th St. Improvements          AB 4318    6/16/2008    2008    $301,765 Unapp. beginning
                        Project (Bid Award)                                                        fund balance

                        2008 North Mercer Way Re-         AB 4333    7/21/2008    2008     $70,000 Unapp. beginning
                        Surfacing Project (Bid Award)                                              fund balance

Criminal       Police   Taser Funding                     AB 4335    7/21/2008    2008     $18,000 Unapp. beginning
Justice                                                                                            fund balance
                                                                                                   (2007 federal
                                                                                                   seizure money)

CCMV Bldg      Parks & Community Center Parking Lot       AB 4326    7/7/2008     2008     $43,570 Unapp. beginning
Construction   Rec     Repair                                                                      fund balance

Equipment      Fire     Authorization to Purchase 2 Used AB 4316     7/7/2008     2008    $260,000 Fire apparatus
Rental                  Maxi Pumpers & Make Minor                                                  sinking fund
                        Upgrades                                                                   balance


NOW, THEREFORE, the City Council of the City of Mercer Island, Washington, do ordain as
follows:

Section 1.    The 2007-2008 Budget for the City of Mercer Island, as adopted in Ordinance No.
06-17 is hereby amended to incorporate increases in revenues and expenditures in the following
funds:

                                                         AB 4352
                                                         Exhibit 3
                                                         Page 29
     Fund No.                Fund Description                Revenues       Expenditures
        001     General                                           $8,200          $8,200
        104     Street                                         $1,062,765      $1,062,765
        112     Criminal Justice                                 $18,000         $18,000
        355     CCMV Building Construction                       $43,570         $43,570
        503     Equipment Rental                                $260,000        $260,000
                                                    Totals   $1,392,535      $1,392,535

Section 2.     City Ordinances Nos. 06-17, 07-03, 07-05, 07-08, 07-09, 07-13, 08-03, 08-04, and
08-05 as previously adopted and as hereby amended, are hereby ratified and confirmed and
continued in full force and effect.

Section 3.    This ordinance shall take effect and be in force thirty (30) days after passage,
signing and publication.

PASSED BY THE CITY COUNCIL OF THE CITY OF MERCER ISLAND, WASHINGTON,
AT ITS MEETING ON THE 2nd DAY OF SEPTEMBER, 2008.


                                                     CITY OF MERCER ISLAND



                                                     Jim Pearman, Mayor

ATTEST:



Allison Spietz, City Clerk

APPROVED AS TO FORM:



Katie H. Knight, City Attorney

Date of Publication:




                                             AB 4352
                                             Exhibit 3
                                             Page 30

				
DOCUMENT INFO
Shared By:
Tags:
Stats:
views:30
posted:5/11/2011
language:English
pages:30