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					2006 Adopted Budget
City of Bellingham, Washington
Partnership moves waterfront vision forward
The City of Bellingham and Port of Bellingham have joined forces to redevelop 137
acres of waterfront acquired by the Port last year. The 20-year vision: a new city
neighborhood with homes, shops, offices and light industry, as well as parks and
promenades, a healthy shoreline habitat along Bellingham Bay, and a new marina.
In January 2005, with the City’s commitment to partner on planning and infrastructure,
the Port of Bellingham acquired 137 acres of heavy industrial property from the Georgia
Pacific Corporation in the center of the downtown waterfront. This property had been
used by GP for pulp and chemical operations, before those portions of the plant closed
in 2001. That closure resulted in the loss of hundreds of local jobs and spurred a rich,
community-wide discussion about the future of this valuable property.
Even before the Port acquired the property, community leaders recognized that
partnerships at the local, state and federal levels would be essential to creating a
healthy, vibrant waterfront. Beginning in 2003, the City and Port jointly hosted an 18-
month community visioning project led by a citizen’s committee. The Waterfront
Futures Group did an outstanding and extensive job of researching waterfront
redevelopment efforts across the country, gaining broad community perspective and
presenting a citizen-led vision for the future of the waterfront.
City and Port officials are committed to working together to establish new zoning,
permitting and master planning documents that incorporate the Waterfront Futures
Group’s work. The two governments signed a landmark agreement in 2005 that
defines specific steps they will take to bring this redevelopment vision to reality.
For example, the City agreed to provide extensive new roads, utilities, parks and trails.
The Port agreed to conduct a comprehensive environmental cleanup of the site and the
waterway in keeping with goals defined by the Bellingham Bay Pilot Project, and to
develop new visitor and permanent moorage.
These are major commitments that promise decades of cooperation and the beginning
of an exciting new era for Bellingham’s waterfront. Already the project has received
strong support from the state for railway relocation, demolition and planning, and
environmental cleanup. In addition, the federal government has awarded funds for
major transportation improvements needed to access this site.
For more information, visit the City of Bellingham website at www.cob.org.
__________________________

On the cover: Inset photograph: Bellingham’s Old Town and the central downtown
waterfront, as seen from the Whatcom Museum of History and Art. Photograph by
Steven J. Niedermeyer. Background photograph: View from Bellingham Bay looking
east through downtown. Photograph courtesy of the Port of Bellingham.
       CITY OF BELLINGHAM MISSION STATEMENT


Support safe, satisfying and prosperous community life by providing
the citizens of Bellingham quality, cost-effective services that meet
     today’s needs and form a strong foundation for the future.




                  CITY OF BELLINGHAM, WASHINGTON

                                         2006 ADOPTED BUDGET
                 CITY OF BELLINGHAM, WASHINGTON

                                                        2006

                                          ADOPTED BUDGET




Mayor
Mark Asmundson

Executive Office ................................................................................................. 676-6979
email.........................................................................................................mayor@cob.org




Budget Team

Malcolm Fleming, Chief Administrative Officer

Kim Krause, Budget Manager

Janice Keller, Communications Coordinator

Pat Starcher, Budget Specialist

Karla Buckingham, Budget Assistant




                               Visit us on the City’s website at www.cob.org
                                                   CITY COUNCIL
                                                        2006


Council Office..................................................................................................... 676-6970
email.................................................................................................. citycouncil@cob.org

Bob Ryan ............................................................................................................ 1st Ward

Gene Knutson ....................................................................................................2nd Ward
Council President

John Watts ..........................................................................................................3rd Ward
Mayor Pro-Tempore

Joan Beardsley ...................................................................................................4th Ward

Terry Bornemann ................................................................................................5th Ward
Council President Pro-Tempore

Barbara Ryan ......................................................................................................6th Ward

Louise Bjornson ...................................................................................................At-Large




                                      OTHER ELECTED OFFICIALS


Finance Director
Therese Holm

Finance Office .................................................................................................... 676-6900
email.......................................................................................................... tholm@cob.org


Municipal Court Judge
Debra Lev

Bellingham Municipal Court................................................................................ 676-6978
email............................................................................................................ dlev@cob.org




                                Visit us on the City’s website at www.cob.org
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                      OFFICE OF THE MAYOR
                      210 Lottie Street, Bellingham, WA 98225
                      Telephone: (360) 676-6979 Fax: (360) 738-7418



TO:            Bellingham City Council and the Citizens of Bellingham
FROM:          Mayor Mark Asmundson
DATE:          December 19, 2005
SUBJECT:       Presenting the 2006 Budget


Amidst changes that have occurred in the past, those that are underway, and changes the
future will inevitably bring, the City of Bellingham remains among the most livable, vibrant
communities in the United States. It is a city of spectacular natural beauty, outstanding public
facilities, and engaged, energetic citizens. Bellingham has a bright future with many exciting
opportunities.

To continue supporting this bright future I am pleased to present the 2006 Budget for the City of
Bellingham. This budget is the 2006 blueprint for the City’s mission: To support safe, satisfying
and prosperous community life by providing the citizens of Bellingham with quality, cost-
effective services that meet today’s needs and form a strong foundation for the future.

This balanced budget totals $193.2 million, with a net general fund budget of $54.2 million. This
is about 2.5% greater than the 2005 general fund budget.

This budget funds key community priorities, provides a wide range of services that are
requested and expected by our community, and contributes significantly to the high qualify of life
that Bellingham residents enjoy. This budget also builds on the significant successes we
achieved in 2005.


Bellingham celebrates many achievements in 2005

We have much to celebrate as we look back on the past year and plan for the year ahead.
Among the City’s numerous achievements in 2005 are the following:

   •    Making significant progress in transforming Bellingham’s waterfront into a source of
        vitality, value and pride for the entire community by establishing an effective working
        partnership with the Port of Bellingham, purchasing a partial ownership interest in a
        section of property at the South end of Cornwall Avenue, developing and implementing a
        work plan to carry out this enormous effort, securing $12 million in funding for various
        aspects of the project, and developing several conceptual design alternatives for
        community review. Being recognized by Seattle Business Monthly magazine as
        Washington’s third highest ranked “Best Cities for Business” reflecting the City’s strong



                                                 i
    job growth, highly educated workforce, quality of life, business infrastructure, taxes and
    other criteria.
•   Completing restoration of the Holly Street Landfill site along Whatcom Creek providing
    renewed tide flats and a salt marsh to attract fish and other aquatic life and a new
    boardwalk to attract people to Bellingham’s Old Town and provide dynamic views of this
    productive estuary.
•   Starting construction of the Taylor Dock Upland Improvements to provide a covered
    picnic shelter, a new floating dock and ramp, and completing the development of the
    upland park area.
•   Securing numerous competitive grants including a $600,000 grant toward the purchase
    of land in the Chuckanut Bay Greenway (Woodstock Farm), other grants to fund
    Whatcom Creek Trail and Northwest Avenue Pedestrian Improvement projects and
    development of the North Bellingham Trail and Greenway Plan.
•   Acquiring significant parcels and conducting other activities in the Lake Whatcom
    watershed in 2005 address our goal of protecting our water resources in the reservoir,
    including winning a national award for our stormwater treatment facilities in the
    watershed.
•   Negotiating an agreement with the County and receiving resounding support from voters
    to provide funding to continue providing EMS services throughout Whatcom County.
•   Entertaining and informing over 110,000 people who visited the City’s wildly successful
    museum exhibits including, “Motorcycles: The Good, the Bad and the Custom”.
•   Leading a regional one-day "point-in-time" count of the homeless population in Whatcom
    County. The results of this effort to accurately identify homeless needs in our community
    provide insights into local homelessness issues, additional services needs, and help
    bring in federal and state grant funding to address these important needs.
•   Providing additional services to citizens via the city's website, including an on-line
    registration system for parks and recreational activities, on-line status checking for
    building permits, and on-line BTV10 television program schedule. These additions to the
    city's electronic services are easy to use and improve customer service and
    convenience, and have proved popular with citizens.
•   Launching a redesigned government and education television channel, BTV10, featuring
    improved on-air audio and visual quality, more coverage of city government programs
    and activities, and easier access to the broadcast schedule.
•   Installing video cameras at key locations downtown to monitor traffic flow and also aid in
    crime prevention. Within the first days of installation of the first camera, this additional
    eye on downtown contributed to an arrest.
•   Increasing collaboration with educational institutions and neighborhood representatives
    to address underage drinking, disruptive neighborhood parties and alcohol-related crime,
    including conducting "Party Patrol" emphasis patrols in key locations.
•   Regaining sound financial standing allowing the City to restore reserve funds,
    strategically add staff in critical areas and fund the most pressing infrastructure
    maintenance and improvements.




                                              ii
As this list demonstrates, the City achieved numerous successes in 2005. This was possible
thanks to strong leadership, hard work, a robust local economy and careful planning. However,
making these achievements possible was not painless.


Strategic action was necessary to align costs with revenues

As I described in last year’s budget message, several major events—including State legislation,
initiatives and the closure of the Georgia Pacific pulp mill—have had a significant negative
impact on the City’s revenues. These events were exacerbated by increases in insurance costs
and hikes in required pension contributions and other employee compensation. The City’s
financial forecasts indicated that the combined impact of these factors would soon deplete the
City’s financial reserves. To address these challenges, prepare for those ahead and maintain
the highest priority services for a growing community, we took decisive and sometimes painful
steps including:
     • Eliminating over 40 positions during 2003 and 2004
     • Implementing employee cost sharing for medical benefits
     • Changing the way we provide Emergency Medical Service (EMS) transport to delay
         adding more ambulance staff yet still meet the demands for service
     • Adopting many other cost-cutting measures, such as eliminating police officers in middle
         schools, bicycle patrols and the Drug Awareness and Resistance Education (DARE)
         program, reducing Library hours, closing a Museum facility, reducing Parks
         maintenance, and postponing fleet replacements

We also made strategic budget and accounting changes that allow us to more accurately
identify expenses and forecast for the future including:
    • Basing the budget on most recent actual expenditure reports (rather than the previous
        years budget, which tends to overestimate expenditures and understate revenues)
    • Allocating expenses more appropriately by:
            o Revising our indirect cost allocation plan to more accurately attribute costs to the
                activities associated with those costs
            o Paying swimming pool bonds with Real Estate Excise Tax, a revenue source
                which by law is used primarily for capital facilities
            o Paying regulatory staff from the Development Services Fund rather than the
                General Fund, in order to eliminate a taxpayer subsidy of growth-related services
    • Incorporating “turnback” into our long-term forecasts. The budget is a legal authorization
        to expend funds. It is also an educated estimate of both revenues and expenditures.
        The estimates can never fully predict future events. Thus, a careful review of our budget
        history indicates that about 3% of authorized general fund expenditures are not made in
        the course of the budget year. Therefore, we are recognizing this history in the 2006
        budget, where the sum of $1.6 million is included as the anticipated amount of
        authorized expenditures that will not actually occur.

These actions combined with the revenue generated by our robust local economy put the City
back into a strong financial position with healthy reserves.




                                                iii
Financial challenges are not over

In spite of the success of our recent actions and the current thriving economy, like all
Washington cities Bellingham faces a structural funding problem. The service needs of the
community, combined with the rate of increase of costs to provide those services, continue over
the long run to make total costs rise faster than general fund revenue. More challenges ahead
will aggravate this problem. These challenges include:
     • In 2007 the State intends to more than double and then in 2008 more than triple the
        City’s required contribution for employee retirement benefits. These increases from the
        current rate of 3.07% of wages to 9.38% in 2008 will add millions to the City’s cost of
        employee retirement benefits mandated through the Public Employee Retirement
        System (PERS).
     • Rising medical related costs will continue to drive increases in the annual cost to fund
        the Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF), which
        mandates pension, long-term care and medical care.
     • Business and Occupation tax exemptions for certain activities adopted by the
        Legislature, that become effective in 2008, are estimated by the State to reduce the
        amount of Business and Occupations tax revenue that the City receives by $632,000
        annually.
     • When Whatcom County opens the new interim jail in late 2006 or early 2007 we
        anticipate that the City’s costs for incarcerating additional inmates will increase by
        approximately $200,000 annually
     • New challenges such as preparing for a potential bird flu pandemic and continuing
        unfunded mandates from the Federal and State government, such as the new
        requirements to meet specified fire response times will require additional funding.
     • Creating a coordinated system of policies and procedures that has broad public support,
        complies with State laws and effectively maintains and improves the quality of life in
        individual neighborhoods, throughout the city and in the region will require significant
        staff and resources to engage the public and develop appropriate changes to the
        existing system.
     • Strategically adding staff to maintain the existing level of service as the population of the
        City grows over time.

As we anticipate these events and project our revenues and expenditures over the next six
years it is clear that we will continue to be faced with difficult choices. The graph on the next
page reflects the changes in actual reserves over the past six years and the projected reserves
that we can expect during the next six years as we anticipate the events listed above and if the
historical trends in expenditures and revenues continue. As the graph indicates we expect to
remain in strong financial shape for the next two years. However, beginning in 2008
expenditures will likely exceed revenues so that by 2010 our reserves will drop below the goal
we set this year to maintain reserves equal to at least 12% of expenditures.




                                                 iv
                                                   General Fund Reserves
                                                          2006 Adopted Budget

                  12,000


                  10,000


                   8,000
      Million $




                   6,000


                   4,000


                   2,000


                      -
                           1999   2000   2001     2002      2003   2004       2005     2006   2007      2008   2009   2010   2011

                                         Ending Reserve - Actual   Ending Reserve - Budget    12%Goal




As in prior years, the budget includes a 1% property tax increase which amounts to about 35
cents per month for the average home. Without this increase, reserves would drop below our
goal sooner than shown in the projection above.

Fortunately the strong Bellingham economy is contributing to our City’s financial health and this
year is expected to help bridge the otherwise large gap between the revenues from this 1%
property tax increase and the larger increases in the City’s mandated costs. Bellingham’s
diverse economy is growing rapidly. As a consequence tax revenues tied to the economy, such
as sales and Business and Occupation (B&O) taxes, are increasing at rates significantly higher
than the historical average. For instance, while B&O taxes have increased an average of 4.2%
over the past five years, in 2005 they increased over 10%. Although we do not anticipate future
tax growth to be as robust as we experienced in 2005, we do expect the economy to continue to
grow. The graph above is based on the assumption that sales taxes will increase at
approximately 5.2 percent annually and B&O taxes will increase at approximately 4.3 percent
annually.

The challenges listed and illustrated above, as well as others that have not yet surfaced, require
that we continue to strategically manage our resources and fiscal issues to accomplish our
mission of safety and service. The actions we will take in 2006 to ensure our long-term financial
health include the following:
• Develop funding solutions for Public Employees Retirement System (PERS) and
    Washington Law Enforcement Officers’ and Fire Fighters’ (LEOFF) Retirement System
    increases, including internal and legislative options
• Continue fine-tuning our forecasts of both expenses and revenues
• Work to ensure priorities remain in line with community needs/wishes
• Work closely with all of the City’s collective bargaining units and employees to identify cost
    saving measures without lowering service levels


                                                                          v
•   Continue our extraordinarily successful efforts to obtain state and federal funds for capital
    projects
•   Continue ongoing evaluation of city programs to ensure high quality services are delivered
    in the most cost-effective manner possible.


Highlights Of The 2006 Budget

The very nature of city services, such as police, fire and emergency medical services, court
services, parks and recreation and planning, require people—city employees—to provide those
services. Unfortunately, as the graph below illustrates, the ratio of staff to population has
declined by almost 9% when compared with previous levels.


                          FTEs per Thousand Residents

          13


       12.5


          12


       11.5


          11
               1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006


While the overall ratio of staff to population is an issue of general concern, even more important
are the staff and other resources needed in specific areas. With this in mind, the 2006 budget
strategically adds staff in a few key areas, primarily public safety, parks and utilities. These staff
additions are necessary because of our growing population and increase in demand for City
services. They include:
• Five new positions in Police to enhance patrol response time and increase police presence
    in our downtown
• One new Assistant City Attorney Senior position to handle the increasing caseload in the
    criminal division
• Increased hours for part-time parks maintenance staff
• Making permanent the existing time-limited Park Project Engineer position to oversee,
    coordinate and complete work associated with the numerous park development projects the
    City is undertaking and will undertake in the future
• Continuing full-year funding for expanded Geographical Information Systems and other staff
    to expand public information and involvement and ensure that citizens have timely and
    accurate information concerning development issues




                                                  vi
Other key areas of emphasis, activities and projects funded in the 2006 Budget include:
• Growth Management. The budget includes $500,000 for professional services to undertake
   numerous “Community Building” activities intended to clarify and address key public
   concerns about growth management issues and to update the City’s policies, procedures
   and implementing ordinances. This is intended to create a coordinated system for planning
   and addressing growth management issues that has broad public support and effectively
   maintains and improves the quality of life throughout the city and in the region.
• Waterfront Redevelopment. The outstanding partnership between the Port of Bellingham
   and the City for waterfront development is well underway and will continue into 2006. This
   unique joint project enjoyed early success in 2005, receiving $12 million in funding from
   Federal and State sources. Our lobbying efforts will continue as the capital needs for this
   endeavor are significant. In 2006, a central waterfront master plan should be ready for
   public review and approval by the City Council and Port Commission.
• Capital Facilities Projects. The strong real estate market has increased Real Estate
   Excise Tax revenues. These revenues can only be used for specific expenses related to
   certain types of capital facilities. The 2006 budget includes funding from these restricted
   revenues, as well as funding available from grants, impact fees, utility revenues and sales
   tax revenues, for an array of capital projects, including:
        o Completing the Depot Market Square on Railroad Avenue
        o Completing major Civic Field renovations
        o Developing Phase 1 of Squalicum Creek Park
        o Constructing bicycle and pedestrian facilities on West Street to serve Squalicum
            Creek Park
        o Acquiring park land in the Cordata/North Bellingham area
        o Undertaking the largest street resurfacing effort in City history
        o Completing a major segment of the Whatcom Creek Trail from Racine Street to Ellis
            Street
        o Reconstructing the Holly Street entrance to downtown from Ellis Street to Railroad
            Avenue
        o Developing additional stormwater treatment facilities in the Lake Whatcom
            Watershed
        o Using $3 million to acquire and protect land in the Lake Whatcom Watershed
        o Constructing innovative structures to divert water from the Middle Fork of the
            Nooksack, which will allow the removal of the 1950’s era diversion dam, a barrier to
            salmon spawning
        o Completing the site selection and schematic design for a new central library
• Voter Approved Sales Tax Increase For EMS. Voters resoundingly approved a 1/10th of
   1% increase in sales tax to enable the continuation of a unified county wide system of
   emergency medical response. This system creates economies of scale for all participating
   jurisdictions. Consistent with the provisions of State law, 67% of the .01% sales tax will be
   used to fund the coordinated EMS system lead by the City of Bellingham in cooperation with
   Whatcom County and the cities and fire districts within Whatcom County. The remaining
   33% of the sales tax must be used solely for criminal justice purposes.


The budget is the City’s most important policy action

This budget is a financial document in that it outlines anticipated revenues and proposed
expenditures for 2006. But more than a financial document, it is a policy document. It specifies



                                               vii
how City resources will be allocated to achieve the City Council’s established goals and a broad
array of city programs and services.

This budget reflects the highest priority of the city—public safety—and devotes more than 55%
of the City’s general fund resources to Police, Fire and Judicial support. It also addresses other
key objectives including protecting Lake Whatcom; redeveloping our waterfront, expanding our
parks and trail systems; maintaining public facilities; strategically applying technology to
streamline and improve our operations; addressing needs stemming from our steady population
growth; providing resources for programs and needs of the poorest members of our community
and enhancing the quality of life for all Bellingham neighborhoods.

The budget is a plan for the future. Adopting the budget is the single most important policy
action that the Council takes each year. We have developed this budget based on the goals that
the Council adopted last February, on suggestions from various citizen advisory groups,
including recommendations from the Budget Advisory Committee, on requests and comments
from the public and on our best professional judgment. To make the policy clear, the budget is
organized to make it easy to find the information required to understand how City services are
provided, where the funding for each service comes from and how that funding is used.

Thanks to the hard work of the budget staff, the City’s budget has earned the Government
Finance Officers Association (GFOA) “Distinguished Budget” award for the last two years and I
anticipate that it will do so again this year. I want to thank the Budget Team, the Department
Directors and all of the staff who helped put the budget together. I also want to thank the City
Council for fine tuning the preliminary budget and then unanimously approving the final budget
to provide the resources to continue the City’s efforts to maintain and improve the excellent
quality of life we enjoy here.

Bellingham is my hometown. During my 50-plus years here I have experienced dramatic change
throughout our community. The Bellingham of today is better than ever. The vision, vigilance,
support and creativity of our community and its elected officials will ensure that the changes we
face today are shaped so as to enhance our city. I have every reason for this confidence, as I
have seen it occur time and time again. Bellingham in 2006 is a wonderful, vibrant community
with limitless opportunities for the future, opportunities to be wisely, strategically embraced.


Sincerely,




Mark Asmundson, Mayor
City of Bellingham




                                               viii
                                             Table of Contents

Council Goals .......................................................................................................1-2
     2006 ...............................................................................................................1
     2005 ...............................................................................................................2

General Information ...........................................................................................3-38
     Readers’ Guide............................................................................................3-5
     Community and Local Economy
            Community Information and Population Trend..................................6-7
            Employers and Unemployment Trend..................................................8
            Business Tax Activity Trend.................................................................9
            Building Permit Activity Trend ............................................................10
            Sales Tax Receipt and Distribution....................................................11
            Property Tax Distribution ...................................................................12
            Property Tax Assessment Trend .......................................................13
     Services Provided by the City, Organizational Structure ..............................14
     Organization Chart .......................................................................................15
     Department Heads and Executive Staff (directory)..................................16-17
     Preparing and Amending the Budget (includes Budget Calendar) ..........18-19
     Budget Development Policies..................................................................20-23
     Explanation of Accounting Basis and Account Code Structure ...............24-28
     Fund Descriptions and Accountability......................................................29-38

Budget Summary .................................................................................................. 39-122
     Budget Summary Reports (description)...................................................39-40
     Summary of Estimated Revenues, Expenditures and Reserves .............42-43
     Revenues, Sources, Expenditures and Uses – All Funds Report............44-68
     Expenditures by Subobject – All Funds Report .......................................70-71
     General Fund Revenue Trends and Projections Graph................................72
     Major Funds – Revenue and Sources Report and Notes
           General Fund................................................................................73-77
           Street Fund ...................................................................................77-78
           Housing and Community Development Fund ....................................79
           Water Fund ...................................................................................80-81
           Wastewater Fund..........................................................................81-82
           Medic One Fund ................................................................................83
     Other Selected Funds – Revenue and Sources Report and Notes
           First ¼% Real Estate Excise Tax Fund..............................................84
           Second ¼% Real Estate Excise Tax Fund ........................................85
           Public Safety Dispatch Fund..............................................................86
           Public Facilities District Fund .............................................................87
           Storm and Surface Water Utility Fund ...............................................88
           Solid Waste Fund ..............................................................................89
           Development Services Fund..............................................................90


                                                              ix
         Revenue Summary by Fund Department and Basic Account................92-101
         Expenditure Summary by Fund, Department and Object ....................102-111
         Changes in Reserve Balance ..............................................................112-116
         2006 Budget Ordinance.......................................................................117-119
         2006 Property Tax Levy Ordinance .....................................................120-122

Departmental Budgets .................................................................................123-280
     Public Safety
     Fire Department...................................................................................123-130
     Police Department ...............................................................................131-138
     Judicial and Support Services Department..........................................139-144
     Culture and Recreation
     Parks and Recreation Department ......................................................145-156
     Library Department..............................................................................157-164
     Museum Department ...........................................................................165-172
     Planning and Development
     Planning and Community Development ..............................................173-188
     Hearing Examiner Department ............................................................189-192
     General Government
     Human Resources Department ...........................................................193-204
     Finance Department ............................................................................205-210
     Information and Technology Services Department..............................211-216
     Legal Department ................................................................................217-222
     Executive Department .........................................................................223-232
     Legislative Department........................................................................233-240
     Non-Departmental
     Non-Departmental ...............................................................................241-242
     Public Facilities District........................................................................243-248
     Public Works
     Public Works Department ....................................................................249-280

Capital Budget ..............................................................................................281-392
      Capital Budget .....................................................................................281-368
      Capital Facilities Plan ..........................................................................369-392

Long Term Debt Summary ..........................................................................393-400




                                                            x
Personnel......................................................................................................401-446
     General Salary Information and Salary Plans
             Plan B for AFSCME Local 114..................................................401-405
             Plan C for IAFF Local 106.........................................................406-409
             Plan D for Bellingham Police Guild ...........................................410-411
             Plan E for employees exempt from representation ...................412-415
             Plan F for IAFF Local 106S.......................................................416-417
             Plan L for AFSCME Local 114L .......................................................418
             Plan M for AFSCME Local 114F......................................................419
             Plan P for WhatComm Dispatchers Guild ........................................420
             Plan S for Teamsters Local 231................................................421-422
     Budgeted Positions
             Fire Department...............................................................................423
             Police Department ....................................................................424-425
             Judicial and Support Services Department ......................................425
             Parks and Recreation Department............................................426-427
             Library Department ..........................................................................428
             Museum Department .......................................................................429
             Planning and Community Development Department ................430-431
             Hearing Examiner Department ........................................................432
             Human Resources Department .......................................................432
             Finance Department ........................................................................433
             Information and Technology Services Department ..........................434
             Legal Department ............................................................................434
             Executive Department......................................................................435
             Legislative Department ....................................................................435
             Public Facilities District ....................................................................436
             Public Works Department .........................................................436-442
     10 - Year History of Budgeted Positions..............................................443-446

Glossary........................................................................................................447-452




                                                             xi
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                xii
                                                                        City Council Goals


                                     2006
                                 COUNCIL GOALS

                                          Goal 1
Protect and improve the quality of drinking water in the Lake Whatcom Reservoir.

                                          Goal 2
   Continue to develop a vibrant downtown that includes a mix of residential,
commercial, educational, retail, and cultural uses and amenities with connections
                 between the downtown and waterfront areas.

                                          Goal 3
      Protect and enhance the City’s cultural, educational, recreational, and
                            environmental assets.

                                          Goal 4
   Continue to develop more effective systems for moving people and freight
through and around the City; improve the coordination of transportation, parking
                           and land use decisions.

                                          Goal 5
       Maintain existing facilities and build high-priority new capital facilities.

                                          Goal 6
 Plan and respond strategically to growth pressures to preserve a high quality of
                               life for all residents.

                                          Goal 7
    Continue to support development of a more diverse and sustainable local
                                 economy.

                                          Goal 8
 Continue to improve communication between the City and its citizens about all
                       goals, priorities, and challenges.

                                          Goal 9
    Continue to support programs and provide facilities that serve low income
                            families and individuals.

City Council Objectives for 2006 appear in the legislative section. Departmental objectives
that relate to Council Goals are referenced by goal number in each departmental section.



City Of Bellingham, Washington                                                       Page 1
2006 Adopted Budget
City Council Goals


                                    2005
                                COUNCIL GOALS

                                     Goal 1
    Protect the quality of drinking water in the Lake Whatcom Reservoir.

                                   Goal 2
Develop a vibrant downtown that includes a mix of residential, commercial,
  educational, retail, and cultural uses and amenities with connections
              between the downtown and waterfront areas.

                                  Goal 3
   Protect and enhance the City’s cultural, educational, recreational, and
                         environmental assets.

                                   Goal 4
Develop more effective systems for moving people and freight through and
 around the City; improve the coordination of transportation and land use
      decisions involving all transportation agencies including WTA.

                                   Goal 5
               Fund and build high-priority new capital facilities.

                                    Goal 6
            Respond strategically to population growth pressures.

                                Goal 7
 Support development of a more diverse economy; seek ways to increase
                   high-paying jobs in Bellingham.

                                   Goal 8
Continue to improve communication between the City and its citizens about
                   all goals, priorities, and challenges.

City Council has updated these goals for 2006 by replacing Goal 6, adding Goal 9, and
making other minor edits. 2005 Goals are shown for reference in reviewing departmental
objectives with accomplishments for 2005, which will be shown in the Adopted Budget
Document.




Page 2                                                 City Of Bellingham, Washington
                                                                 2006 Adopted Budget
                                                                       General Information


                  A READERS’ GUIDE TO THE BUDGET
The budget document serves multiple purposes. One purpose is to present the City Council
and the community with a picture of the general services that the City provides and how
they are paid for. Another is to provide City management with a financial and operating
plan for the coming year. For all readers, the document provides some accountability for
performance by City management.

The Title Page is followed by the City of Bellingham Mission Statement and a Directory of
Elected Officials.

The Mayor’s Budget Message provides a summary of the key elements of the budget. It
highlights significant service delivery changes and reviews the most important challenges
facing City management in providing the services for citizens.

A Table of Contents follows the Mayor’s Budget Message.

The City Council Goals are listed next, and are referred to by number throughout the
departmental sections of the document in order to tie departments’ objectives to Council’s
objectives.

General Information
This Readers’ Guide provides a summary of the sections of the document.

The Community and Local Economy pages provide a general description of the area and
some economic statistics for the City. The distribution of property taxes and the assessed
values on which property taxes are collected appears in this area.

Services Provided by the City is a brief summary of services the City provides, followed by a
description of the Organizational Structure of the City and an Organization Chart, to put the
internal relationships of the City into perspective. A Directory of Department Heads and
Executive Staff lists the individuals responsible for managing delivery of services.

Preparing and Amending the Budget includes a budget process calendar showing major
steps and the timeline used for the developing the budget, and a description of the
processes for developing, amending, and controlling the budget and for re-appropriations.

The Budget Development Policies pages present the Council’s Guiding Principles and some
of the Financial and Operating Policies used by the Mayor as relates to both operations and
budget preparation.

An Explanation of Accounting Basis and Account Structure describes these elements of the
City’s budget system. Lists of revenues and sources, and expenditures and uses category
definitions are provided.

The Fund Descriptions and Accountability pages provide information about each fund and
the department or departments to which each fund is assigned.


City Of Bellingham, Washington                                                       Page 3
2006 Adopted Budget
General Information

Budget Summary
A number of summary reports are presented in this section. They provide an overview of
information presented in more detail in later sections.

For the purpose of describing the budget summary reports, “budget year” refers to the year
for which the budget is prepared – 2006; “current year” refers to the year during which the
budget preparation for the “budget year” takes place – 2005; and “prior year” refers to the
year before the “current year” – 2004.

The first report is the Summary of Estimated Revenues, Expenditures and Reserves for the
City as a whole. This report summarizes the budget year by fund type, and compares totals
for the budget year to the current year adopted budget.

The Revenues, Sources, Expenditures and Uses - All Funds report is summarized and
sorted by fund, with the fund name and number at the top of each section. Figures are
shown for the prior year actual, the current year adopted budget, and the budget year.
Comparisons are made between the current year adopted budget and budget year figures.

Next, the Expenditures by Subobject - All Funds report shows a breakdown of expenditures
by type, with reserves eliminated, for all funds in aggregate.

A General Fund Revenue Trends and Projections chart precedes the more detailed revenue
reports for the major and other selected funds. Sources of funds and reasons for any
significant changes in revenue sources for these major funds are described. These reports
include figures for the budget year compared with the current year adopted budget.

The Revenue Summary by Fund, Department, and Basic Account summarizes revenues
and reserves by type for the budget year. This report ties the basic revenue accounts back
to the departments that generate the revenues. The Fund Reserves departmental
designation indicates that no specific department generates the revenue. These revenues
are received for the benefit of the fund in total.

The Expenditure Summary by Fund, Department, and Object summarizes expenditures and
reserves by type for the budget year.

The Changes in Reserve Balances report provides analysis of the changes between
beginning and ending reserve balances for the coming year. An explanation is provided for
the major funds having an increase or decrease in reserve balance of more than 10%. An
explanation is provided for those non-major and other funds with dollar changes in reserves
of greater than $250,000.

For the Adopted Budget, a copy of the Budget Ordinance is included and illustrates the
authorization for the preparation of the document. A copy of the Property Tax Ordinance is
also included in the Adopted Budget. This ordinance establishes the authority for the
property tax levy for the coming year.




Page 4                                                   City Of Bellingham, Washington
                                                                   2006 Adopted Budget
                                                                      General Information

Departmental Sections
The departmental sections generally include the following components:
• An organizational chart that illustrates the functions of the department categorized by
   accounting group or by functional areas.
• A departmental mission statement.
• A description of the services performed by the department.
• Departmental Budget Summary tables. Tables show the departmental revenues sorted
   and summarized by major revenue categories. Impacts on reserves are shown by fund
   in the bottom portion of the revenue table. Two tables show expenditures. The first
   expenditure table is summarized by department-defined, group cost centers. The
   second is summarized by major expense types. There is also a summary of total full-
   time equivalent (FTEs) employees for the year. Each of these tables shows figures for
   the budget year, current year adopted budget, prior year actual, and comparison
   between budget year and current year adopted.
• A description of significant changes in the departmental budget from the current to the
   budget year.
• Departmental objectives for the coming year. For larger departments, objectives may be
   organized by division and/or group. Where there is a relationship to City Council Goals,
   the number of the related goal is identified. Council Goals for the budget year are
   shown on page one.
• Prior year objectives with related and additional key accomplishments included in the
   Adopted Budget. City Council Goals from the previous year, which are related to these
   objectives, are shown on page two.
• Performance and activity measures for four years presented in table format. The Target
   column gives either a performance goal or an estimate of activity or workload
   experienced by the department. If the line item is a performance goal, the “Met” column
   will indicate that the goal was achieved with a check mark on that line. If the goal was
   not achieved, the white box will be blank. If the line item is a workload or activity
   measure, the “Met” column will be gray on that line.

The Capital Budget section consists of budgeted capital outlay and the six-year Capital
Facilities Plan.

The Long-Term Debt section summarizes the long-term debt of the City and how the debt
is authorized and secured.

The Personnel Section includes salary plans, a list of budgeted positions, and a ten-year
budgeted position history summary.

A Glossary of terms and acronyms used in the document appears at the end.




City Of Bellingham, Washington                                                      Page 5
2006 Adopted Budget
General Information


                   COMMUNITY AND LOCAL ECONOMY
Located on Bellingham Bay with Mount Baker as its backdrop, Bellingham is the last major
city before the Washington coastline meets the Canadian border. Bellingham is 85 miles
north of Seattle and an hour south of Vancouver, B.C. The City of Bellingham, which
serves as the county seat of Whatcom County, is at the center of a uniquely picturesque
area that offers a rich variety of recreational, cultural, educational and economic activities
and opportunities.

Bellingham citizens have made strategic investments in parks, trails and preserved open
spaces, offering recreation and respite to the young and young-at-heart. From salt-water
bays, rivers and lakes to the peak of Mount Baker, area residents and visitors alike can
literally “do it all” in one day from Bellingham. Skiing, kayaking, mountain biking and other
adventure sports abound, as well as slower-paced activities like hiking, golfing, bird
watching and fishing.

Downtown Bellingham and the historic Fairhaven district feature an interesting mix of
restaurants, art galleries and specialty shops. The growing downtown cultural district
includes the respected Whatcom Museum of History and Art, owned and operated by the
City of Bellingham with the generous support of many organizations and individuals.
Originally built in 1892 as City Hall, the Museum's striking brick building is the centerpiece
of a four-building campus, including a children's museum.

Bellingham's renowned Fairhaven district offers Victorian-era buildings, shops offering
hand-crafted products, local restaurants serving fresh seafood and art galleries featuring
Northwest artisans. Visitors bound for Alaska depart on the Alaska Marine Highway System
ferries from the Bellingham Cruise Terminal, also in the Fairhaven District. Bellingham’s
active waterfront port supports fishing, boat building, shipping and marina operations.
Squalicum Harbor is the second largest in Puget Sound, with 1,900 pleasure and
commercial boats moored.

Bellingham is home to Western Washington University on Sehome Hill, one of several
hilltop locations in Bellingham that feature sweeping views across the bay to the San Juan
Islands. Western is the third largest university in the state with enrollment of more than
12,000 students. Whatcom Community College and Bellingham Technical College serve
more than 10,000 students, offering undergraduate courses and a wide variety of technical
training. Bellingham Public Schools operates 12 elementary schools, four middle schools
and three high schools.

Multiple transportation links connect the community to the region and the world. Horizon
and Allegiant airlines and various charter services depart from the port-operated Bellingham
International Airport. Amtrak rail service and Greyhound bus service connects Bellingham
to Seattle and Vancouver BC, both departing from the Fairhaven district. From
Bellingham's ports, tour boats and ferries leave for whale watch cruises, tours to Victoria on
Vancouver Island, cruises to the San Juan Islands and longer voyages to Alaska. Whatcom
Transportation Authority (WTA) provides fixed-route bus transportation within Bellingham
and throughout Whatcom County.


Page 6                                                      City Of Bellingham, Washington
                                                                      2006 Adopted Budget
                                                                                  General Information

Some Key Facts:

Elevation: Ranges from sea level at the waterfront to approximately 240 feet above on
Western Washington University’s campus.

Weather: Seasonal. Temperature range in winter is 32° to 51°. In summer, the range is
48° to 71°. Average annual rainfall is 36.17 inches per year.

Land size: The City encompasses approximately 28 square miles.

History: Native people were here first – Lummi, Nooksack and other Coast Salish people
who thrived on the resources of what would become Bellingham Bay. English Captain
George Vancouver first explored the area in 1792 and named Bellingham Bay for Sir
William Bellingham, Vancouver's British Navy provisioner. Small communities came and
went on the shores of Bellingham Bay through boom and bust cycles throughout the 1800s.
The City of Bellingham incorporated as a Washington Municipal Corporation in 1904, after
the populations of four bayside towns voted to consolidate.

Median resident age: 30.4 years
Median household income: $32,530
Median house value: $156,100
(Based on 2000 census data)

Bellingham’s population of 72,320 in 2005 has increased 25% from 1995.


                         City of Bellingham Population
      75,000

      70,000


      65,000

      60,000


      55,000

      50,000
               1996   1997    1998    1999 2000* 2001         2002    2003     2004    2005
                Washington Office of Financial Management Estimates (*adjusted for census)




City Of Bellingham, Washington                                                                Page 7
2006 Adopted Budget
General Information




           Largest Employers in Whatcom County
Name                              Type                           Employed
Western Washington University     Education                         2,235
St. Joseph Hospital               Health Care                       1,757
Bellingham School District        Education                         1,651
Whatcom County                    Government                          930
Ferndale School District          Education                           910
City of Bellingham                Government                          858
Haggen, Inc.                      Retail                              843
Alcoa Intalco Works               Manufacturing                       800
Sodexho Services                  Catering                            648
Brown & Cole Stores               Grocery                             634
Bellingham Economic Development Council, Spring 2005



The preliminary unemployment rate for Bellingham for June of 2005 is 4.6%, with the rate
for Washington Sate at 5.5%. (Rates shown for the ten-year period reflect a new modeling
approach and re-estimation done in March 2005 by the US Bureau of Labor Statistics in
March 2005.)


                   Unemployment Rate, June of each year
  9.0%

  8.0%

  7.0%
                                                                                    5.5%
  6.0%

  5.0%

  4.0%                                                                              4.6%


  3.0%
         1996    1997   1998    1999    2000       2001      2002     2003   2004   2005
                                    Bureau of Labor Statistics

                                    Statewide          Bellingham




Page 8                                                              City Of Bellingham, Washington
                                                                              2006 Adopted Budget
                                                                                General Information

Business Activity

Bellingham has an expanding retail and service based economy.

                              Taxable Retail Sales - Bellingham
                             By Standard Industrial Classification

                                                                                      % of Change
                                   2002               2003                 2004       Total '03 to '04
Retail Trade                  $ 957,155,644      $1,027,166,654       $1,132,640,330 63.1%     10.3%
Contracting                      210,928,364        243,961,872          241,554,502 13.5%     -1.0%
Services                         168,770,662        170,254,871          171,216,303   9.5%     0.6%
Wholesaling                      102,313,146        110,731,148          116,689,734   6.5%     5.4%
Transportation/Comm/Utilities     48,051,602         53,767,414           58,943,337   3.3%     9.6%
Finance/Insurance/Real Estate     29,269,644         34,092,267           33,832,514   1.9%    -0.8%
Manufacturing                     20,408,111         21,670,887           23,931,720   1.3%    10.4%
Other Business                    12,148,058         11,453,086           16,093,321   0.9%    40.5%
Total                         $1,549,045,231     $1,673,098,199       $1,794,901,761 100.0%     7.3%
                            Department of Revenue, Quarterly Business Review




Business and Occupation Tax

This chart shows a ten-year history of the City’s Business and Occupation Tax revenue.
B & O Tax rates have not changed during this period.


                                  Bellingham B & O Tax
 $12,000,000

 $10,000,000

   $8,000,000

   $6,000,000

   $4,000,000

   $2,000,000

         $-
                 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005




City Of Bellingham, Washington                                                                 Page 9
2006 Adopted Budget
General Information

Building Permit Activity

The number of residential units added within the City, the number of permits issued and the
valuation of new construction are summarized from the Development Services permit
tracking system.


        Number of Permits Issued by Development                            Residential Units Added
                       Services
   6,000
                                                          1200
   5,000
                                                          1000
   4,000
   3,000                                                   800

   2,000                                                   600
   1,000
                                                           400
        0
            1999 2000 2001 2002 2003 2004 2005             200

                                                             0
                Building Permits       Other Permits

                                                                 1996

                                                                        1997

                                                                               1998

                                                                                      1999

                                                                                             2000

                                                                                                    2001

                                                                                                           2002

                                                                                                                  2003

                                                                                                                         2004

                                                                                                                                2005
                Total Permits




Valuation is based on the square foot valuation in the permit tracking system. The valuation
for All Building Permits includes more categories than are summarized in separate lines on
the graph.



                                Valuation of Construction from Building Permits
                                                   (millions)
   $250
                                                                                                                  All Building
   $200                                                                                                           Permits

   $150                                                                                                           Commercial

   $100                                                                                                           Single Family
    $50                                                                                                           Residential
                                                                                                                  Residential
   $-                                                                                                             Multi
            1996 1997 1998 1999 2000 2001 2002 2003 2004 2005




Page 10                                                                 City Of Bellingham, Washington
                                                                                  2006 Adopted Budget
                                                                                                                                              General Information


Distribution of Sales Tax


                                Taxable Retail Sales                                                            Sales Tax Received - City of Bellingham

             $2,000                                                                                       $20

             $1,500                                                                                       $15
  Millions




                                                                                               Millions
             $1,000                                                                                       $10

              $500                                                                                         $5

                $0                                                                                         $0
                      1995

                             1996

                                    1997

                                           1998

                                                  1999

                                                         2000

                                                                2001

                                                                       2002

                                                                              2003

                                                                                     2004




                                                                                                                 1996

                                                                                                                        1997

                                                                                                                               1998

                                                                                                                                       1999

                                                                                                                                               2000

                                                                                                                                                      2001

                                                                                                                                                             2002

                                                                                                                                                                    2003

                                                                                                                                                                             2004

                                                                                                                                                                                    2005
                                                                                                            Sales Tax Distribution
   Breakdown of Retail Sales Tax Rate
           for Distribution                                                                                     Whatcom                   Jail
                                                                                        Whatcom                                       Construction             Criminal
                                                                                                                 County
                                                                                      Transportation                                     1.2%                Justice Fund*
    Whatcom Transportation Authority                            0.60                                              1.8%
                                                                                         Authority                                                               1.2% EMS**
    Whatcom County                                              0.15                      7.1%                                                                          1.2%
    Jail Construction                                           0.10
                                                                                                                                                                             City of
    Criminal Justice Fund*                                      0.10
                                                                                                                                                                           Bellingham
    EMS**                                                       0.10                                                                                                         10.1%
    City of Bellingham                                          0.85
    State Schools                                               6.50
    Total Retail Sales Tax Rate**                               8.40%
   *Criminal Justice Fund money is divided between                                                                      State Schools
       the City and County based on population.                                                                             77.4%
 **The tax rate change from 8.3% to 8.4% is effective
                     April 1, 2006.




The .85% sales tax received by the City is divided with approximately 50% going into the
General Fund and 50% going into the Street Fund.




City Of Bellingham, Washington                                                                                                                                         Page 11
2006 Adopted Budget
General Information


Distribution of Property Tax Dollars

The chart below shows how Property Tax dollars are distributed for a taxpayer residing within
the City of Bellingham. The distribution is based upon the 2006 property tax levy.
                                                    Levy Rate                                  Cost for             Cost for
Jurdisdiction                                       Per $1,000           Percent of            $100K                $150K
                                                     Valuation             Levy                 HOME                 HOME

City of Bellingham
     General Fund                                       $1.68297               16.68%              $168.30             $252.45
     Fire Pension                                        0.22500                2.23%                22.50               33.75
          Nonvoted Levy                                  1.90797               18.91%               190.80              286.20
     Voted Greenways                                     0.24761                2.45%                24.76               37.14
          Total Regular Levy                             2.15558               21.37%               215.56              323.34
     Voted Excess Levies                                 0.04884                0.48%                 4.88                7.33
Total City of Bellingham Levy                            2.20442               21.85%               220.44              330.66
State Schools                                            2.97937               29.54%               297.94              446.91
County Levy                                              1.32537               13.14%               132.54              198.81
Conservation Futures                                     0.05148                0.51%                 5.15                7.72
Flood Control Zone                                       0.16582                1.64%                16.58               24.87
Port of Bellingham                                       0.38320                3.80%                38.32               57.48
Bellingham School District (1)                           2.97790               29.52%               297.79              446.69

Total Levy                                            $10.08756               100.00%           $1,008.76            $1,513.13
(1) Small portions of the City of Bellingham are within the Meridian or Ferndale School Districts rather than the Bellingham
School District, resulting in a slightly different property tax rate in those areas.

                                                    Conservation
                                                      Futures
                   Flood Control Zone
                                                       0.5%
                          1.6%
                                                                                City of Bellingham
        Port of Bellingham                                                       Nonvoted Levy
               3.8%                                                                   18.9%
                                                                                               COB Beyond
              County Levy                                                                     Greenways Levy
                13.1%                                                                              2.5%
                                                                                              COB Voted Excess
                                                                                                   Levy
                                                                                                   0.5%
                                      State Schools
                                          29.5%     Bellingham School
                                                          District
                                                           29.5%




Page 12                                                                             City Of Bellingham, Washington
                                                                                              2006 Adopted Budget
                                                                                                                                                                General Information



                                         ASSESSED VALUATION - REAL PROPERTY
                                                 Last Ten Fiscal Years




                                                                                                                                                                                     6,715,440,994
                                                                                                                                                                    5,424,417,349
     $7,000,000,000




                                                                                                                                                4,733,207,580
                                                                                                                               4,648,811,782
                                                                                                              4,540,362,955
                                                                                             4,210,019,871
     $6,000,000,000




                                                                            3,988,920,074
                                                           3,898,007,165
                                          3,754,674,576
                         3,566,541,051




     $5,000,000,000


     $4,000,000,000


     $3,000,000,000


     $2,000,000,000


     $1,000,000,000

                        8.4%             5.3%             3.8%             2.3%             5.5%             7.8%             2.4%             1.8%                14.6%            23.8%
                   $0
                        1996             1997             1998             1999             2000             2001             2002             2003                2004             2005

                            Percentage is Increase Over Prior Year. 2005 is Assessment for 2006 Taxes.
                          Source: Whatcom County Assessor's Certification of Assessed Vaulations memo.


                                                                    Assessed Valuation of New Construction

     $200,000,000


     $150,000,000


     $100,000,000


      $50,000,000


              $-
                        1996             1997             1998             1999             2000             2001              2002             2003                  2004               2005


The Whatcom County Assessor revalues property in a four-year cycle. The southern
portion of Bellingham was revalued in 2000 and 2004. The northern portion of Bellingham
was revalued in 2001 and in 2005. Annexations and major new construction also can
cause the values to increase more than normal in a given year.

The Assessor’s new construction valuation is not generally comparable to the new
construction valuation from the permit system. The value per square foot used is not the
same, and some construction requiring permits is exempt from property tax, such as school
construction.



City Of Bellingham, Washington                                                                                                                                                                  Page 13
2006 Adopted Budget
General Information


                    SERVICES PROVIDED BY THE CITY
The City provides a full range of municipal services that include public safety, culture and
recreation activities, economic development, street and parking, utilities, and general
administrative services.

Activities owned and operated by the City include water, wastewater and stormwater
utilities, municipal parking facilities, Lake Padden Golf Course, Bayview Cemetery,
Whatcom Museum of History and Art, Bellingham Public Library and Fairhaven Branch
Library, nearly 100 parks, a civic stadium, athletic fields, and the Arne Hannah Aquatic
Center. The City operates Medic One to provide countywide emergency medical services
under an agreement with Whatcom County.




                      ORGANIZATIONAL STRUCTURE
The City's charter establishes a council-mayor form of government. City management is led
by the elected Mayor in a strong-Mayor, weak-Council form of government. The City
Charter also provides for an elected Finance Director and state statute provides for an
elected Municipal Court Judge.

Six council members are elected by wards and serve four-year terms. Three are elected
every two years. The seventh council member is elected every two years in an at-large
capacity. The Mayor is elected for a four-year term at the same time as the Finance
Director. A Municipal Court Judge is elected for a four-year term at the mid-point of the
Mayor’s term of office.

The Chief Administrative Officer (CAO) and administrative department heads are appointed
by and serve at the mayor’s discretion, with two exceptions. The City Attorney requires
approval of the City Council for appointment or removal, and the Library Director is
appointed by the Library Board.

The City of Bellingham is structured into sixteen departments or service areas, which may
be further divided into operating divisions. Each department or division is broken down into
its functional units, or groups. The organization chart that follows shows the elected
officials, the operating departments and the citizen boards, committees, commissions, etc.
that assist the City to function.




Page 14                                                    City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                                                                              General Information


                                    ORGANIZATION CHART


                                                       CITIZENS OF
                                                       BELLINGHAM



       FINANCE                          LEGISLATIVE                    EXECUTIVE                        MUNICIPAL COURT
      ELECTED                             ELECTED                       ELECTED                            ELECTED
      DIRECTOR                            COUNCIL                        MAYOR                               JUDGE

                                                                                               PFD
                                                                                              BOARD


      FINANCE                                     LEGAL                           EXECUTIVE
                                                                                                           MUNICIPAL
       DEPT.                                      DEPT.                             DEPT.
                                                                                                            COURT
                                                                                     PFD                    ADMIN.
                                                                                                           CITYWIDE
                                                 HEARING
                                                                                                           SUPPORT
                                                EXAMINER
                                                                                                           SERVICES


                                                                                                               LIBRARY
                                                                                                                BOARD

                        PLANNING &                                     HUMAN
                                               PUBLIC WORKS
   POLICE DEPT.         COMMUNITY                                    RESOURCES             LIBRARY
                                                   DEPT.
                       DEVELOPMENT                                     DEPT.


                                                                                                           MUSEUM
                                   PARKS &                 INFORMATION                                      BOARD
             FIRE DEPT.          RECREATION                TECHNOLOGY              MUSEUM
                                    DEPT.                    SERVICES


                                             CITIZEN PARTICIPATION
                                        BOARDS, COMMITTEES, COMMISSIONS



      TEXT        A text box indicates a department or elected official within the City organization.
      BOX

      TEXT        A divided box indicates dual function and responsibility within the same department.
      BOX

      TEXT        A box with double-width shadow indicates an entity outside the City organization.
      BOX

                  A dotted line indicates an indirect or advisory relationship.

                  A solid line indicates a formal and direct relationship.

       PFD        Public Facilities District

     This key applies to all organization charts throughout the Budget Document, which appear at the
     beginning of each Departmental section.




City Of Bellingham, Washington                                                                                 Page 15
2006 Adopted Budget
General Information


                                            DEPARTMENT HEADS

Fire Chief .................................................................................................................. 676-6831
      Bill Boyd ...............................................................................................bboyd@cob.org

Police Chief .............................................................................................................. 676-6916
       Randy Carroll ......................................................................................rcarroll@cob.org

Judicial and Support Services Director ................................................................ 676-6978
      Linda Storck ........................................................................................ lstorck@cob.org

Parks and Recreation Director ............................................................................... 676-6985
      Paul Leuthold .................................................................................. pleuthold@cob.org

Library Director........................................................................................................ 676-7794
       Pamela Kiesner ................................................................................pkiesner@cob.org

Museum Director ..................................................................................................... 676-6981
     Tom Livesay .......................................................................................tlivesay@cob.org

Director of Planning and Community Development ............................................ 676-6982
      vacant ............................................................................................................................

Hearing Examiner .................................................................................................... 752-1149
      Dawn Sturwold ............................................................................... dsturwold@cob.org

Human Resources Director .................................................................................... 676-6960
     Jo Zeimet............................................................................................ jzeimet@cob.org

Information Technology Services Department Director...................................... 738-7443
      Marty Mulholland ....................................................................... mmulholland@cob.org

City Attorney ............................................................................................................ 676-6903
       Joan Hoisington............................................................................ jhoisington@cob.org

Public Works Director ............................................................................................. 676-6961
      Dick McKinley................................................................................. rmckinley@cob.org




                    See title pages in front of book for a directory of elected officials.




Page 16                                                                              City Of Bellingham, Washington
                                                                                               2006 Adopted Budget
                                                                                                General Information


                                            EXECUTIVE STAFF

Chief Administrative Officer ................................................................................... 676-6979
      Malcolm Fleming .............................................................................. malcolm@cob.org

Communications Coordinator................................................................................ 676-6979
    Janice Keller......................................................................................... jkeller@cob.org

Governmental Relations Director .......................................................................... 676-6984
     Dick Little............................................................................................... dlittle@cob.org

Budget Manager....................................................................................................... 738-7320
     Kim Krause........................................................................................ kkrause@cob.org




                   See title pages in front of book for a directory of elected officials.




City Of Bellingham, Washington                                                                                     Page 17
2006 Adopted Budget
General Information


          PREPARING AND AMENDING THE CITY’S BUDGET

                    2005 PROCESS CALENDAR FOR 2006 BUDGET
Council Retreat to discuss goals and priorities for 2006...................................... February
Departments prepare annual estimates ........................................................... Early June
Departmental requests filed with the Budget Manager.......................................Late June
Departmental requests presented to the Mayor ............................................ Early August
Preliminary Budget presented to Council ..................................................Mid-September
Departmental Presentations and Hearings on the Budget .............................Mid-October
Public Hearing on revenue sources including Property Tax ...........................Mid-October
Property Tax Ordinance presented to Council ...............................................Mid-October
Council adopts Property Tax Ordinance........................................................Late October
Final Public Hearing on Budget..................................................................Mid-November
Council adopts Budget ......................................................................................December
Adopted Budget Document Printed ..................................................................... February




Preparing the City’s Budget
Preparation of the City’s budget is governed by the City Charter and Revised Code of
Washington (RCW), Chapter 35.33. The deadlines in the following narrative describe state
minimum requirements. The City sometimes chooses to accelerate this schedule. The
schedule that was used for this budget year is found above.

On or before the second Monday in September, Departments are notified that they have
until the fourth Monday in September to submit their estimate of revenues and expenditures
for the next year’s budget. Department heads provide these estimates along with their
proposed method of financing expenditures from funding sources (bonds, etc.) not yet
authorized. Estimates of interest and debt redemption requirements are prepared.

On or before the first business day in October, the Budget Manager submits a proposed
preliminary budget to the Mayor, which shows the expenditures requested by each
department and the related sources of revenue. The Mayor makes revisions to the
preliminary budget and submits the Mayor’s Budget Message and the Preliminary Budget
document to the Finance Director on or before November 1st. The Finance Director makes
copies of the preliminary budget document available to taxpayers not later than six weeks
prior to January 1st.

The City Council certifies the estimated amounts to be raised by taxation on the assessed
valuation of property within the City through the adoption of an ordinance setting tax levy
rates for the budget year. A public hearing on revenue sources is held by the Council prior
to taking action on the proposed tax levy ordinance. The Finance Director sends a copy of
the adopted ordinance to the Whatcom County Assessor on or before the last day of
November.



Page 18                                                                 City Of Bellingham, Washington
                                                                                  2006 Adopted Budget
                                                                       General Information

The City Council holds hearings on the budget prior to the final public hearing. These
hearings may include presentations from departments on their estimates and programs.
These hearings take place during the month of November.

The clerk publishes the notice of public hearing during the first two weeks of November.
The final hearing on the budget is held on or before the first Monday of December. Any
taxpayer may appear at the final hearing and make comments on any part of the budget.
The final hearing may be continued from day-to-day, but completed no later than December
5th.

The City Council makes changes to the Preliminary Budget as it deems necessary and
adopts the Final Budget, by ordinance, prior to January 1st.

Amending the Budget
The City Council can, by ordinance, increase or decrease the appropriations in any fund.
Transfer of appropriations within a single fund or within any single department in the
General Fund can be made with the Mayor’s authorization. Transfer of appropriations
between funds or between departments in the General Fund requires Council approval.

Re-appropriating Prior Year Funds
All appropriations in any fund lapse at the end of the fiscal year. Amounts authorized during
the fiscal year to pay for goods and services not received or completed by the end of the
fiscal year may be re-appropriated to the next year by ordinance.

Budget Control
The Finance Director presents a quarterly report to the Mayor and City Council, which
compares estimated and actual revenues and expenses to date. If revenues appear to be
less than anticipated, the City Council, by ordinance, reduces appropriations to keep
expenditures within the available resources and to maintain appropriate reserves.




City Of Bellingham, Washington                                                      Page 19
2006 Adopted Budget
General Information


                    BUDGET DEVELOPMENT POLICIES
The following pages consolidate several City policies, directives and practices that affect
development of the budget. It may be revised as needed by the Mayor and City Council.

Basic Budget Balancing Equation

There is a simple equation to illustrate the components of a balanced budget. The equation
is: Beginning Reserve Balance + Revenues = Expenditures + Ending Reserve Balance.
When one of these four components is changed, then an account within the same
component must change in the opposite direction by a like amount, or one or more of the
other three components must change in order to keep the equation in balance.

Bellingham City Council Guiding Principals adopted in 1998:

1. Policy and administrative decisions should reflect long-term community goals.

2. All City decisions should reflect both immediate and long-term costs.

3. Encourage citizen stewardship through involvement in civic affairs.

4. Promote and support intergovernmental and public/private partnerships.

5. Planning a healthy environment for children fosters a healthy environment for us all;
   therefore, all City policies and decisions will consider the well-being and safety of
   children.

The following policies relate to the budget and, in some cases, the informal guidelines the
administration typically uses when developing the Preliminary Budget. The goals and
policies presented herein were recommended by the Mayor.

General Operating Policies

1. The City of Bellingham strives to provide a healthy balance of services to residents.
   These include programs for public safety, infrastructure, culture, recreation, planning,
   and maintenance of capital facilities. Such a balance is necessary to promote an
   outstanding quality of life in the City, a good community environment for families and
   youth, and a desirable climate for attraction and retention of leading businesses. While
   recognizing the importance of all programs to promote those goals, it is understood that
   the City's ability to provide them can vary according to shifts in the local and state
   economy. During periods of flat or declining revenues due to the level of economic
   activity, the City's emphasis on programs for public safety and maintaining previous
   investments in capital facilities will increase. During periods of increasing revenues due
   to improving economic activity, the City will generally work to improve the balance
   among different program areas.




Page 20                                                    City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                                                          General Information

2. The City will not use resources received, that are considered to be of a one-time nature,
   to finance on-going operational costs.

3. The City strives for a compensation practice that will attract and retain competent
   employees and be in harmony with the community served. In establishing
   compensation, which includes salary and benefits, the City will normally reflect the
   compensation practices of employers in the geographic area from which job applicants
   are recruited.

4. The City will evaluate the costs of insurance versus the risk the City retains by self-
   insuring. Insurance will be purchased 1) when the premiums are reasonably priced; 2)
   when reputable, solvent insurance firms from which to select are available; and 3) when
   the likelihood of a loss occurrence is low but the potential dollar risk if such a loss occurs
   is high.

5. The City's top priority is public safety services. However, should compensation
   settlements continue to exceed the growth in the local economy, adjustments may be
   necessary in these services.

6. The City will not include City-owned park and open space land in the special benefit
   category subject to LID assessments, unless such property can be converted to a higher
   and better use.

7. The City will use interfund loans when possible to provide for cash flow coverage.
   Longer-term uses will be allowed on a case-by-case basis. The Finance Director will
   establish rates of return to assure the loaning fund receives a return equal to the pool
   investment rate.

8. The City will use the “Prudent Person” policy when investing funds. Preservation and
   safety of assets is a higher priority than return on investments. The City's investment
   policy provides greater detail on this subject.

9. The City will use recycled paper whenever costs are less than or similar to costs for
   virgin paper stocks.

10. City policy PAR 10.0.1 will establish the level of recovery of costs from fees charged for
    recreation programs.

11. Each fund should maintain sufficient cash balances to allow for seasonal fluctuations in
    revenues and expenses. Levels should be set independently for each fund.

12. Estimated revenues, expenditures and turnback (the amount of budgeted appropriations
    that remains unspent at year-end) are based on the 5-year historical average for each
    item, unless there is a compelling reason stated in writing for basing the estimate on a
    higher or lower amount.




City Of Bellingham, Washington                                                          Page 21
2006 Adopted Budget
General Information

General Capital/Debt Policies and Goals

1. Streets need to be resurfaced every 20 years. On the average this is 14 miles per year.

2. Water mains need to be replaced every 100 years. On the average this is 4 miles per
   year.

3. Sewer lines need to be replaced every 100 years. On the average this is 3 miles per
   year.

4. Drainage facilities are usually replaced in conjunction with street resurfacing projects.
   About $500,000 in resources is required each year (not including grant funds or larger
   one-time capital projects).

5. Departmental computer equipment has different life spans. Due to rapidly changing
   technology, equipment may be obsolete before its physical life has expired.

   Laser jet printers 5 yrs
   Personal computers 5 yrs physical
                      3 yrs obsolete

6. Debt will be issued only when 1) it is required to meet time constraints, 2) it would not be
   cost effective to wait, and 3) a revenue stream is available to repay the debt.

7. If capital assets are constructed with funds from voted debt, it is anticipated that voted
   debt will be used for their replacement or for substantial repair.

8. Capital leases will be used sparingly. Rentals are recommended primarily when an
   asset is needed on a short-term basis. For assets needed for their full life expectancy it
   is more cost effective to acquire the asset by a cash purchase.

City Council Financial Policies

The financial policies currently adopted are listed below.

Finance Policy 96-1 (Adopted October 28, 1996 and subsequently amended):

The City of Bellingham has City Council approved, designated budgetary reserve balance
goals in various funds. It is recognized that because they are goals they will not always be
met because the City may be either in the process of increasing reserves to meet the goal
or annual fluctuations may cause the City to be either above or below the goals. The
current funds with City Council approved designated budgetary reserve balance goals are
as follows:

1. General Fund - the goal is 12% of the annual operating budget, 6,450,000 for 2006.
   The budget provides $6,542,622 in designated and $4,388,528 in undesignated
   reserves.



Page 22                                                      City Of Bellingham, Washington
                                                                       2006 Adopted Budget
                                                                          General Information



2. Street Fund - the goal is 5% of the annual operating budget. The budget provides
   $700,000 in designated and $29,613 in undesignated reserves.

3. Computer Reserve Fund - the goal is 50% of the original value of General Fund
   acquired system hardware and software. The budget provides $1,386,990 in
   designated reserves.

4. Development Services Fund - the goal is 50% or six months of the annual operating
   budget. The designated goal for 2006 is approximately $1,440,000 based on this
   method. The budget provides $927,393 in designated reserves. The City Council
   approved fee increases in 2005 to help meet this goal.

5. Fleet Administration - the Fleet reserve balance fluctuates depending upon the stage of
   the equipment replacement cycle. The 2006 budget provides $3,560,000 in designated
   equipment replacement and operating reserves and $160,881 in undesignated reserves.

6. Claims & Litigation Fund - the goal is $5,000,000. The 2006 budget provides
   $5,141,606.

7. Unemployment Compensation Fund - the goal is 75% of the annual expected claims
   payments to Washington State. The designated goal for 2006 is $90,000 and the
   budget provides for this amount. The undesignated reserve is $151,846.

8. Workers Compensation Fund - this reserve has been increased to $600,000, which is
   $100,000 more than the City’s stop-loss liability. The 2006 budget provides $585,276.

9. Health Benefits Fund – the goal is 3% of the City’s health insurance premiums. The
   budget provides $203,250 in designated and $584,058 in undesignated reserves.

Finance Policy 96-2 (Adopted October 28, 1996):

The budgeted beginning fund balance will be adjusted to actual and all unanticipated
expenditures and revenues will be accounted for by adjustments to the ending fund
balance.

Finance Policy 96-3 (Adopted October 28, 1996):

If funds are being set aside for a specific project or purpose, the funds will be identified as
"designated reserves" and shall be presented in the annual budget.




City Of Bellingham, Washington                                                          Page 23
2006 Adopted Budget
General Information


                EXPLANATION OF ACCOUNTING BASIS
                     AND ACCOUNT STRUCTURE
Basis of Accounting

Basis of accounting defines when revenues, expenditures or expenses are recognized in
the accounts and included in the budget estimates. The basis of budgeting and the basis of
accounting used in the City’s audited financial statements are the same.

The modified accrual basis of accounting is used for the General Fund, Special Revenue
Funds, Debt Service Funds, Capital Project Funds, Benefit Trust Funds and Permanent
Funds. Under this method, expenditures are recognized in the accounting period in which
the liability is incurred. Revenues are recognized when they become both measurable and
available to finance expenditures of the current period (no more than 60 days beyond period
end). Revenues that are measurable but not available are recorded as deferred revenues
and offset by receivables.

•   Taxes, entitlements and shared revenues are recognized when cash is received.
•   Grant reimbursements are recognized in the year in which the expenditures are
    incurred.
•   Special assessments are considered measurable and available when they become
    current.
•   Interfund revenues for goods and services are considered measurable and available
    when earned.
•   Proceeds from refunded debt are recognized as an “Other Financing Source” and the
    amount remitted to the refunding trustee is recognized as an “Other Financing Use”.
•   Redemption of long-term debt principal is considered an expenditure when due.
•   Interest on long-term debt is recorded as an expenditure when due.
•   Proceeds from the sale or loss of general fixed assets are recognized as an “Other
    Financing Source”.
•   Purchases of capital assets and inventories are considered expenditures.
•   Prepaid items, for benefits not yet received, are recorded as expenditures when the
    benefits are realized.
•   Accumulated unpaid sick pay and other health-related employee benefits are
    considered expenditures when paid. Accumulated vacation and compensatory time is
    expended when earned and the resulting liability is reduced when the time is taken off or
    paid.
•   All other revenues are either not measurable or considered not available until collected.

The accrual basis is used for Enterprise Funds, Internal Service Funds, and Pension Trust
Funds. Under this method, revenues are recognized when earned, expenses when
incurred.




Page 24                                                   City Of Bellingham, Washington
                                                                    2006 Adopted Budget
                                                                       General Information

Account Numbers

The State of Washington prescribes the account code structure cities must use for
reporting. Cities may use any accounting system during the course of the year, but they
must prepare their Comprehensive Annual Financial Report (CAFR) and Budget using the
State's Budgeting, Accounting, and Reporting System (BARS) codes.

For regular accounting, the City chose to use an alternative numbering system, called the
User Account Code (UAC). The budget document shows portions of the UAC and portions
of the expense code that are the same in both the BARS and UAC systems. The City sets
up a one-to-one relationship between the UAC and BARS numbers but leaves the full
BARS account code in the background. This allows the City to change the BARS account
for reporting to the state without affecting departments that use a UAC code.

The City does not print all of the UAC or BARS account numbers within the budget
document. Instead, the budget emphasizes a group and the associated costs. The account
numbers needed to accumulate the costs for the service are secondary to the group.

Expenditure account codes include the following components:

Fund Number:
The BARS expenditure codes include the same three-digit fund number used in the revenue
codes.

Department Number:
A three-digit department number is used in sorting the revenue and expenditure reports that
are sorted by fund, department and object in the Budget Summary Section. The
department number is used to separate the data into the tables that appear in the
departmental sections. Departments are further divided into groups for the presentation of
the different functions performed by the City.

Group Number:
The group names that correspond to the group numbers are shown in the departmental
tables. The group number is important because the City has chosen it to be the key method
of categorizing and presenting expenditures. Rather than use the traditional
fund/department method of portraying expenditures, the City has defined groups to include
certain service functions that are meaningful to management, the City Council, and citizens.
These groups cross fund lines to bring into one place all of the expenditures associated with
the service delivery.

Object / Subobject:
The last section of the account number used in the budget document is the object/subobject
code. The object level of expenditures is described on the Expenditures and Uses page in
the Budget Summary Section and also in the Glossary. A further level of detail is shown in
the Expenditures by Subobject – All Funds report in the Budget Summary Section. The
subobject report provides examples of the types of expenditures that roll up to the object
level that is used in other expenditure reports and summaries.



City Of Bellingham, Washington                                                      Page 25
2006 Adopted Budget
General Information

Reserves

For budget preparation and monitoring purposes, the City uses reserves rather than fund
balances. The reserve concept is used because it better defines for City Council and
Administration the resources expected to be available at the beginning of the year for
expenditure. The ending reserves also better define what will be left at year-end for use in
the following year.

The City defines budgetary reserves as the difference between:
   • those assets that can reasonably be expected to be available for use within the year
       or shortly thereafter and
   • those liabilities that can reasonably be expected to be extinguished during the year.


Revenues and Sources

Most of the revenue reports in the Budget Summary Section show the fund name along with
the fund number. Fund descriptions, including which departments are responsible for each
fund, appear under the title Fund Descriptions and Accountability at the end of this
description of account structure.

The BARS revenue codes allow the City to sort and summarize revenues and expenditures
by general categories. Fund revenues are summarized by major groupings called Basic
Accounts. Below are definitions of these revenue categories along with examples.


                    BASIC ACCOUNTS - REVENUES AND SOURCES

Beginning Reserves
The difference between those assets that can reasonably be expected to be available for
use within the year, or shortly thereafter, and those liabilities that can reasonably be
expected to be extinguished during the year.

Taxes
Compulsory charges levied by a government for the purpose of financing services
performed for the common benefit. This does not include specific charges made against
particular persons or property for current or permanent benefits such as special
assessments, or charges for services rendered only to those who pay for and use those
services. Examples include Property, Sales, Utility and Business Taxes.

Licenses and Permits
Charges for issuance of licenses and permits, for example, Business Licenses. This
category does not include inspection charges.




Page 26                                                   City Of Bellingham, Washington
                                                                    2006 Adopted Budget
                                                                       General Information

Intergovernmental Revenue
Grants, entitlements, shared revenues and payments for goods and services provided by
one government to another. One example is Community Development Block Grants
provided to the City from the federal government.

Goods and Services Charges
Charges for services rendered or goods sold by the city except to other governments or
another City department or group. Examples include water service, sewer service, Medic
One service, and golf course user fees.

Fines and Forfeitures
Fines are monetary judgments commonly imposed by the court; forfeitures are penalties by
which one loses rights and interest in property because of commission of an offense or
nonperformance of an obligation or duty. Examples include penalties collected for parking
and traffic tickets.

Miscellaneous Revenues
Includes operating revenues not classified elsewhere, such as interest, rents, leases,
concessions, and contributions from private sources. Examples include interest earnings
and rental income.

Non-Revenues
Includes items such as interfund loan proceeds and proceeds of long-term debt for
proprietary funds.

Other Financing Sources
An increase in current financial resources that is reported separately from revenues to avoid
distorting revenue trends. Examples include sale of GO Bonds, proceeds from the
disposition of capital assets, and transfers.


Expenditures and Uses

Expenditure reports in the budget summary section also show the fund name accompanied
by the fund number. Fund descriptions, including which departments are responsible for
each fund, appear under the title Fund Descriptions and Accountability at the end of this
description of account structure.

Expenditures are summarized by major groupings called Objects. Definitions of these
expenditure categories along with some examples follow.




City Of Bellingham, Washington                                                      Page 27
2006 Adopted Budget
General Information

                         OBJECTS - EXPENDITURES AND USES

Ending Reserves:
The difference between those assets that can reasonably be expected to be available for
use within the year, or shortly thereafter, and those liabilities that can reasonably be
expected to be extinguished during the year.

Salaries and Wages: Expenditure category that includes amounts paid for services
rendered by employees in accordance with rates, hours, terms and conditions authorized by
law or stated in employment contracts. This category also includes overtime and temporary
labor.

Benefits: Those benefits paid by the City as part of the conditions of employment.
Examples include health insurance, social security, and retirement system contributions.

Supplies: A basic classification of expenditures for articles and commodities purchased for
consumption or resale. Examples include office and operating supplies, fuel, inventory or
resale items, small tools and equipment.

Other Services and Charges: A basic classification for services other than personnel.
Examples include professional services, communication, travel, advertising, utilities, and
insurance.

Intergovernmental Services: Purchases of specialized services typically performed by
local governments. An example of this is jail services purchased from Whatcom County.
Transfers within the City from one fund to another are also included in this object.

Capital Outlay: Expenditures of $5,000 or more for the acquisition of, or additions to, fixed
assets. Examples include land, buildings, machinery and equipment.

Debt Service: Payment of interest and principal to holders of the City’s indebtedness.

Interfund Payment for Services (Interfund Charges): Reflects the purchase of services
or supplies provided by another City group or department.


More Account Detail

For both revenues and expenditures, the City uses additional levels of account code detail
that are not shown in the budget document. The inclusion of these additional levels of detail
would both complicate the presentations in this document as well as increase its size.




Page 28                                                   City Of Bellingham, Washington
                                                                    2006 Adopted Budget
                                                                      General Information


           FUND DESCRIPTIONS AND ACCOUNTABILITY
To comply with the BARS system, the City must use a three-digit number for funds. The
City classifies funds by different types. These are:

001 General or Current Expense Fund - To account for all financial resources not required
   to be accounted for in another fund.

100 Special Revenue Funds - To account for the proceeds of specific revenue sources that
   are legally restricted for specified purposes.

200 Debt Service Funds - To account for the accumulation of resources for, and the
   payment of, general long-term debt principal and interest.

300 Capital Projects Funds - To account for financial resources to be used for the
   acquisition or construction of major capital facilities.

400 Enterprise Funds - To account for operations that are normally financed and operated
   in a manner similar to private business enterprises.

500 Internal Service Funds - To account for the financing of goods or services provided by
   one department or agency to other departments or agencies of the governmental unit on
   a cost-reimbursement basis.

611-620 Pension (and Other Employee Benefit) Trust Funds - To account for resources that
   are required to be held in trust for the members and beneficiaries of defined benefit
   pension plans, defined contribution plans, other post-employment benefit plans, and
   other employee benefit plans.

700 Permanent Funds – To account for resources that are legally restricted to the extent
   that only earnings, and not principal, may be used for purposes that support the
   government’s programs.

The Mayor is ultimately responsible for all expenditures of City government. Day-to-day
responsibility for fund management is delegated by the Mayor to Department Heads. In
some instances, a specific department has total responsibility for a fund; in other cases,
more than one department or division draw on the resources of a fund. The listing below
identifies the budgetary areas included in each fund and the area or the person responsible
for reserve level management.




City Of Bellingham, Washington                                                       Page 29
2006 Adopted Budget
General Information



Fund      Fund Name and Description                       Budgetary Areas (Reserve
No.                                                       responsibility is the department
                                                          shown unless otherwise noted.)
001       General Fund: The primary operating fund        Legislative, Executive, Hearing
          of the City. It accounts for all financial      Examiner, Legal, Judicial & Support
          resources not required to be accounted for      Services, Planning and Community
          in a special purpose fund, and finances         Development, Information
          operations for funds that do not have           Technology Services, Museum,
          adequate dedicated revenues, such as            Library, Finance, Parks &
          Police and Fire Pensions, Medic One,            Recreation, Fire and Police.
          Cemetery, reserve balances and debt             Reserve responsibility: Budget for
          services.                                       general reserve and Departments
                                                          for special reserves.
111       Street Fund: For maintenance of all City        Public Works
          streets. Revenue is primarily from state
          sales tax, grants and interfund payments
          for administrative and engineering
          services.
112       Arterial Street Construction Fund: For          Public Works
          upgrading arterial roadways. Recurring
          revenue comes from state shared fuel tax.
          Project funding is supplemented by street
          related grants.
113       Paths & Trails Reserve Fund: To establish       Public Works
          and maintain paths and trails for bicyclists,
          equestrians and pedestrians. Source of
          revenue is one-half of one percent of
          motor vehicle fuel taxes received by the
          Street Fund.
123       Park Site Acquisition Fund: Used for            Parks & Recreation
          acquisition of land for parks, playgrounds,
          open space or greenbelts in areas deemed
          appropriate by the City Council. Source of
          revenue is a charge of $50 per lot in
          subdivisions that do not dedicate or set
          aside property for park purposes.
124       Computer Reserve Fund: For eventual             Information Technology Services
          acquisition or replacement of computer
          system hardware and software. Amounts
          approved by City Council are transferred
          from other funds.




Page 30                                                      City Of Bellingham, Washington
                                                                       2006 Adopted Budget
                                                                    General Information



Fund    Fund Name and Description                    Budgetary Areas (Reserve
No.                                                  responsibility is the department
                                                     shown unless otherwise noted.)
125    Capital Maintenance Fund: A cumulative        Public Works, Library, Museum,
       reserve to meet needs for repairs,            Parks & Recreation, and Fire.
       maintenance, and non-capital                  Reserve responsibility: Budget
       improvements to General Fund supported
       facilities.
126    Library Gift Fund: Accumulates cash gifts     Library
       to the library from private sources.
       Expenditures are made to provide books
       or other materials for the library.
132    Squalicum Park / Olympic Fund: Created        Parks and Recreation
       to account for a portion of the proceeds of
       the settlement from Olympic Pipeline to be
       used for Squalicum Park.
141    First 1/4% Real Estate Excise Tax (REET)      Parks & Recreation, Planning and
       Fund: Proceeds from this tax fund             Community Development, Public
       construction, repair, replacement,            Works, Police, and Fire. Reserve
       rehabilitation, or improvement projects as    and debt responsibility: Budget
       authorized by state law.
142    Second 1/4% REET Fund: Used solely for        Parks & Recreation, Public Works.
       financing capital projects specified in the   Reserve and debt responsibility:
       capital facilities plan element of the        Budget
       comprehensive plan, as authorized by
       state law.
151    Police Federal Equitable Sharing Fund:        Police
       Created when the City entered into
       agreement with the Treasury Department
       to participate in the program for federally
       forfeited property or proceeds. Money
       received under the program is spent
       pursuant to federal guidelines.
152    Asset Forfeiture/Drug Enforcement Fund:       Police
       Proceeds of seizures are deposited into
       this fund, and used exclusively for
       expansion of narcotics enforcement.
153    Criminal Justice Fund: Supplements            Police
       staffing costs and capital equipment
       purchases. Funded by state entitlements.




City Of Bellingham, Washington                                                  Page 31
2006 Adopted Budget
General Information



Fund      Fund Name and Description                 Budgetary Areas (Reserve
No.                                                 responsibility is the department
                                                    shown unless otherwise noted.)
160       Public Safety Dispatch Fund: Provides     Police
          efficient communication services for
          Bellingham’s police, fire and EMS units,
          and participating public safety agencies in
          the surrounding county. This separate
          fund facilitates reporting financial
          operations to user agencies and to the 911
          Center’s Board of Administration. It is
          funded by user agencies.
165       Public Facilities District Fund: The        PFD Board of Directors/Manager
          Bellingham - Whatcom Public Facilities
          District is a separate Washington
          municipal corporation and an independent
          taxing authority created under RCW 35.57,
          Bellingham Municipal Code Chapter 2.94,
          and Whatcom County Code Chapter 1.17.
          The PFD was created in order to receive a
          state sales tax rebate for the purpose of
          creating a regional center, as defined in
          RCW 35.57. Administrative services and
          financial management are provided by the
          City through an interlocal agreement
          between the PFD and the City of
          Bellingham. The fund was established in
          2002.
171       Greenways Levy Fund: The proceeds of        Parks & Recreation
          this additional levy were collected from
          1991 to 1996 to acquire and improve real
          property for open space, parks and trails
172       Beyond Greenways Fund: To continue          Parks & Recreation
          acquisition improvement and maintenance
          of greenway areas begun by the original
          Greenway Levy. Funded by voter-
          approved $20 million property tax levy, of
          which 90% is designated for capital
          projects.




Page 32                                                 City Of Bellingham, Washington
                                                                  2006 Adopted Budget
                                                                   General Information



Fund    Fund Name and Description                   Budgetary Areas (Reserve
No.                                                 responsibility is the department
                                                    shown unless otherwise noted.)
178    Sportsplex Fund: Created to accumulate       Parks & Recreation
       amounts specified in lease with Whatcom
       Soccer Commission to be paid to the City
       for Security Deposit and Capital
       Improvement /Major Maintenance. These
       funds may only be spent by mutual
       agreement for capital improvements, major
       maintenance or early retirement of bonds.
180    Tourism Fund: To pay costs of tourism        Planning and Community
       promotion or acquisition and operation of    Development
       tourism-related facilities. The source of
       revenue is a special excise on transient
       lodging.
190    Housing & Community Development Fund:        Planning and Community
       To upgrade neighborhoods and expand          Development
       affordable housing choices, assist
       community social service agencies,
       address human needs, and create
       employment opportunities for individuals
       with low and moderate incomes. The
       source of revenue for this fund is a
       Community Development federal block
       grant.
211-   General Obligation Debt Service Funds:       Finance
235    Used to account for the accumulation of
       resources for and payment of general
       obligation bond principal and interest,
       special assessment bond principal and
       interest, and state loans, when the
       government is obligated in some manner
       for the payment.
245    Local Improvement District (LID) Guaranty    Finance
       Fund: Assures that payments on
       individual LID’s will be made on time if
       collections from district property holders
       are insufficient. Property in arrears is
       foreclosed and the proceeds deposited to
       the Guaranty Fund.




City Of Bellingham, Washington                                                 Page 33
2006 Adopted Budget
General Information



Fund      Fund Name and Description                      Budgetary Areas (Reserve
No.                                                      responsibility is the department
                                                         shown unless otherwise noted.)
251-      LID Debt Service Funds: LID’s are issued       Finance
299       when property owners require assistance
          funding improvements that benefit the
          entire district. The City administers LID
          bond funds. Since they are not an
          obligation, the City does not budget for
          individual LID’s.
313       City Hall Annex Fund: To pay the cost of       Public Works
          purchasing and remodeling the building
          and adjacent parking lot to accommodate
          City offices.
341       Civic Field Improvements Fund: Created         Parks and Recreation
          to account for the multi-year project to
          remodel and improve the Civic Field
          Complex. The primary resources for the
          project are from transfers from other funds
          and the issuance of G.O. Bonds in 2004.
342       Sportsplex Acquisition Fund: Created to        Parks and Recreation
          acquire the Sportsplex building, an indoor
          ice-rink and soccer facility at civic field.
          Established by ordinance 04-01-006; this
          fund will be closed in 2004.
350-      LID Construction Funds                         Public Works
399
410       Water Fund: To pay for costs associated        Public Works
          with supplying safe water to customers of
          the City’s water supply system. The sole
          source of revenue is the sale of water to
          the general public. Demand charges,
          hydrant fees and reservoir fees are
          collected for construction purposes.
420       Wastewater Fund: To pay for costs              Public Works
          associated with conveying and properly
          treating sewage from customers of the
          City’s wastewater treatment system. The
          sole source of revenue is from services
          provided to the general public. Demand
          charges are collected for construction
          purposes.




Page 34                                                     City Of Bellingham, Washington
                                                                      2006 Adopted Budget
                                                                      General Information



Fund    Fund Name and Description                      Budgetary Areas (Reserve
No.                                                    responsibility is the department
                                                       shown unless otherwise noted.)
430    Storm and Surface Water Utility Fund:           Public Works
       Created to improve existing and construct
       new stormwater facilities, prepare a
       stormwater master plan and acquire
       additional wetland and open space. The
       primary source of revenue is a service
       charge for impervious surface runoff.
440    Solid Waste Fund: To pay costs                  Public Works
       associated with waste collection, transfer
       and disposal. A private contractor handles
       garbage collection and billing. The
       primary source of revenue is the utility tax.
456    Cemetery Fund: To provide for operation         Parks & Recreation
       and maintenance of Bayview Cemetery.
       Revenue is derived from the sale of lots
       and concrete boxes, interment charges,
       and interest. Perpetual care for upkeep of
       graves and cemetery property is funded
       from the sale of gravesites. This fund is
       also supplemented by a contribution from
       the City’s General Fund.
460    Golf Course Fund: For operation of the          Parks and Recreation
       pro shop and Lake Padden Golf course
       maintenance. These services are
       contracted.
465    Parking Services Fund: To operate and           Public Works
       maintain municipal parking system
       consisting of parking garages, surface lots,
       on-street parking and commercial space
       rental. Revenue is primarily derived from
       fees and rentals.
470    Medic One Fund: Provides countywide             Fire
       ambulance service through an Interlocal
       agreement between the City and Whatcom
       County. Revenues generated by fees for
       services and supplemented by
       contributions from the City and County.




City Of Bellingham, Washington                                                    Page 35
2006 Adopted Budget
General Information



Fund      Fund Name and Description                    Budgetary Areas (Reserve
No.                                                    responsibility is the department
                                                       shown unless otherwise noted.)
475       Development Services Fund: To ensure         Planning and Community
          compliance with a variety of state and local Development
          construction codes. Primary source of
          revenue is fees for inspection services.
          (Previously named “Building Services”
          Fund.)
510       Fleet Administration Fund: To consolidate Public Works
          vehicles and equipment under one fund for
          acquisition, repair, maintenance and
          replacement. Revenue is derived from
          renting these assets to user funds and
          mechanical shop services to other funds
          and other government agencies.
520       Purchasing & Materials Management            Public Works
          Fund: To consolidate the functions of
          purchasing, warehousing and issuing
          supplies to various departments of the
          City. Revenue is derived from inventory
          sales and overhead charges.
530       Facilities Administration Fund:              Public Works
          Consolidates the majority of custodial
          services and facility maintenance.
540       Telecommunications Fund: To purchase         Information Technology Services
          telecommunications equipment and
          recover the costs from the user
          departments. Provides centralized
          payment of monthly telecommunication
          expenses. Additional funding is used for
          future acquisitions.
550       Claims & Litigation Fund: To pay             Legal
          expenses for claims, litigation,
          administrative costs, settlements and
          judgments on behalf of City departments.
          Departments pay insurance premiums into
          this fund for future contingencies. Costs
          over
          $2 million are covered by excess liability
          insurance.




Page 36                                                  City Of Bellingham, Washington
                                                                   2006 Adopted Budget
                                                                       General Information



Fund    Fund Name and Description                       Budgetary Areas (Reserve
No.                                                     responsibility is the department
                                                        shown unless otherwise noted.)
561    Unemployment Compensation Fund:                  Human Resources
       Reimburses the state for unemployment
       claims paid to former employees, as
       required by state law. A percentage of
       payroll is transferred to this fund each
       payroll period.
562    Workers Compensation Fund: Covers the            Human Resources
       cost of claims resulting from on the job
       injuries or job-related illnesses, and related
       preventive, safety and disability programs.
565    Health Benefits Fund: Covers the costs of        Human Resources
       providing medical, vision, and dental
       benefits to City employees, health studies
       and the wellness program. Revenue is
       from premiums charged to each
       department per employee.
612    Firefighters Pension Fund: Pension               Human Resources. Reserve
       payment to firefighters or surviving             responsibility: Finance and Human
       spouses and medical benefits for                 Resources
       firefighters hired prior to October 1, 1977.
       Revenue is from property tax, fire
       insurance premium tax, and General Fund
       contributions.
613    Police Officers Pension Fund: Pension            Human Resources. Reserve
       payment to police officers or surviving          responsibility: Finance and Human
       spouses and medical benefits for police          Resources
       officers hired prior to October 1, 1977.
       Revenue is from sales of unclaimed
       property and General Fund contributions.
614    Firefighter's Long Term Care Fund:               Human Resources. Reserve
       Provide long term care costs for                 responsibility: Finance and Human
       firefighters hired prior to October 1, 1977.     Resources
       Revenue is from General Fund
       contributions.
615    Police Officer's Long Term Care Fund:            Human Resources. Reserve
       Provide long term care costs for police          responsibility: Finance and Human
       officers hired prior to October 1, 1977.         Resources
       Revenue is from the General Fund
       contributions.




City Of Bellingham, Washington                                                     Page 37
2006 Adopted Budget
General Information


Fund      Fund Name and Description                   Budgetary Areas (Reserve
No.                                                   responsibility is the department
                                                      shown unless otherwise noted.)
701       Beyond Greenways Endowment Fund:            Parks & Recreation
          Revenue is derived from a voter approved
          $20,000,000 property tax levy, of which
          10% is dedicated for the endowment fund.
          Interest earnings are accumulated in this
          fund and transferred to the General Fund
          for maintenance of properties acquired
          and developed with the Beyond
          Greenways levy.
702       Natural Resource Protection and             Public Works
          Restoration Fund: This permanent fund
          was created in 2004 to account for the
          $4,000,000 settlement passed on by the
          state as a part of the Olympic Pipeline
          Settlement. The principal cannot be spent
          for 50 years. Interest earnings will be
          spent on projects as they are identified.




Page 38                                                  City Of Bellingham, Washington
                                                                   2006 Adopted Budget
                                                                          Budget Summary


                        BUDGET SUMMARY REPORTS
The reports in this section contain City-wide summary data.

Refer to the Explanation of Accounting Basis and Account Structure in the General
Information Section for more information about the City’s account code structure, definitions
and examples of revenue and expense categories, and timing of recognizing revenues and
expenditures. Fund Descriptions and Accountability, also in the General Information
Section, provides information about the purpose of the different funds and which
department is responsible for each fund.

In order to show totals that are in balance, Beginning Reserves are included with Revenues
and Sources, and Ending Reserves are included with Expenditures and Uses. Reserves
are a segregation of assets to provide for future use toward a specified purpose.

Beginning Reserve Balance + Revenues = Expenditures + Ending Reserve Balance. Any
time one of these four components is changed, then an account within the same component
must change in the opposite direction by a like amount, or one or more of the other three
components must change in order to keep the equation in balance.

For the purpose of describing the budget summary reports, “budget year” refers to the year
for which the budget is prepared – 2006; “current year” refers to the year during which the
budget preparation takes place – 2005; and “prior year” refers to the year before the
“current year” – 2004.

Summary of Estimated Revenues, Expenditures and Reserves report
Provides City-wide Beginning Reserve Balance, Revenues by Type, Expenditures by Type,
and Estimated Ending Reserve Balance. Data is presented for the General Fund and
summarized by type of fund for other funds for the budget year. The total of all funds for the
budget year is compared to the total for the current year adopted budget.

Revenues and Sources – Expenditures and Uses – All Funds report
Provides a classified summary of revenues, sources, expenditures and uses along with
ending reserves for each fund and for the City as a whole. Information is presented for the
budget year, current year adopted, and prior year actual, with a comparison given between
the budget year and the current year budgets. Note that Revenues and Sources compared
to Expenditures and Uses are equal for Budget year columns, but not for the 2004 Actual
column. This difference is results from using 2004 Actual data from on preliminary financial
statements that do not include non-budgeted expense items such as depreciation.

Expenditures by SubObject – All Funds report
Provides a more detailed level of expenditures by type for all funds in total, excluding
reserves. The total for this report for the budget year balances with the total expenditures
shown on the Expenditure Summary By Fund, Department And Object report that appears
in the Budget Summary Section.




City Of Bellingham, Washington                                                       Page 39
2006 Adopted Budget
Budget Summary

Fund Revenues and Sources reports for specific funds
These reports are for individual funds, and provide more detail and explanation of sources
and revenues. Reports are provided for all of the City’s “major” (as defined in the glossary)
funds and for other selected funds. The revenue reports for the major funds show each
type of revenue as a percent of all revenue for the fund and compare the budget year to the
current year adopted.

Revenue Summary by Fund, Department and Basic Account report and chart
Shows budget year revenues by fund and department. Subtotals revenues by basic
account type, totals revenues excluding reserves, and provides a grand total with reserves.

Expenditure Summary by Fund, Department and Object report and chart
Shows budget year expenditures by fund and department. Subtotals expenditures by object
type, totals expenditures excluding reserves, and provides a grand total with reserves.




Page 40                                                   City Of Bellingham, Washington
                                                                    2006 Adopted Budget
                                                            Budget Summary




                      This page intentionally left blank.




City Of Bellingham, Washington                                     Page 41
2006 Adopted Budget
Budget Summary


Summary of Estimated Revenues, Expenditures and Reserves


                                             SPECIAL
                               GENERAL       REVENUE         DEBT       CAPITAL      ENTERPRISE
                                FUND          FUNDS         FUNDS        FUNDS         FUNDS

ESTIMATED BEGINNING RESERVE
BALANCE 1/1/2006                $9,974,886   $19,498,455    $534,900      $20,112     $22,999,021

REVENUES

Taxes                           43,202,000    15,776,060      348,250            0      2,039,250
Licenses & Permits                 713,593        51,500            0            0      2,196,000
Intergovernmental                2,129,339     8,424,113            0            0      5,494,664
Charges For Goods & Services     6,250,272     8,195,237       83,871            0     36,131,922
Fines & Forfeitures              1,451,000             0            0            0         92,508
Interest & Miscellaneous           933,012       924,087      376,720        1,080      2,395,952
Non-Revenues                         9,113             0            0            0     10,828,619
Other Financing Sources            428,625     1,660,279    2,471,610    1,031,455      4,647,413

TOTAL REVENUES                  55,116,954    35,031,276    3,280,451    1,032,535     63,826,328

TOTAL AVAILABLE RESOURCES       65,091,840    54,529,731    3,815,351    1,052,647     86,825,349

EXPENDITURES

Salaries & Benefits             36,562,530     9,821,941            0            0     12,534,664
Supplies                         2,099,162       399,204            0            0        912,898
Services                         4,388,405     6,793,325            0            0      6,833,057
Intergovernmental Services       5,200,241     4,461,322            0            0      5,768,794
Capital                            498,196    17,806,285            0    1,031,455     24,893,299
Principal & Interest                     0             0    3,257,953            0      4,772,299
Interfund Charges                5,412,156     4,370,099            0            0     12,497,498

TOTAL EXPENDITURES              54,160,690    43,652,176    3,257,953    1,031,455     68,212,509

ESTIMATED ENDING RESERVE
BALANCE 12/31/2006              10,931,150    10,877,555     557,398       21,192      18,612,840

TOTAL EXPENDITURES & RESERVE
BALANCE                        $65,091,840   $54,529,731   $3,815,351   $1,052,647    $86,825,349




Page 42                                                    City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                                                                       Budget Summary




 INTERNAL      PENSION                      TOTAL         TOTAL           Change from
  SERVICE       TRUST       PERMANENT        2006          2005           2005 Adopted
   FUNDS        FUNDS         FUNDS        BUDGET        ADOPTED        AMOUNT    PERCENT


 $14,109,870   $5,345,951    $3,615,970    $76,099,165    $60,234,920   $15,864,245       26.3%




           0    1,423,000      177,680      62,966,240     56,923,249     6,042,991       10.6%
           0            0            0       2,961,093      1,996,950       964,143       48.3%
           0       91,530            0      16,139,646     13,172,799     2,966,847       22.5%
   4,884,213            0            0      55,545,515     52,554,153     2,991,362        5.7%
           0            0            0       1,543,508      1,686,470      (142,962)      -8.5%
  13,735,363    1,519,238      244,692      20,130,144     17,918,209     2,211,935       12.3%
       8,107       73,560            0      10,919,399     11,071,744      (152,345)      -1.4%
      79,850            0            0      10,319,232     13,442,185    (3,122,953)     -23.2%

  18,707,533    3,107,328      422,372     180,524,777    168,765,759    11,759,018       7.0%

  32,817,403    8,453,279     4,038,342    256,623,942    229,000,679    27,623,263       12.1%




   2,423,667    2,163,000            0      63,505,802     60,246,823     3,258,979        5.4%
   3,283,014      115,200            0       6,809,478      6,232,791       576,687        9.3%
  10,300,748      363,650            0      28,679,185     28,208,699       470,486        1.7%
      86,678            0            0      15,517,035     15,888,439      (371,404)      -2.3%
   1,906,000            0            0      46,135,235     24,574,764    21,560,471       87.7%
           0            0            0       8,030,252     13,765,506    (5,735,254)     -41.7%
   2,233,022          859            0      24,513,634     22,602,564     1,911,070        8.5%

  20,233,129    2,642,709            0     193,190,621    171,519,586    21,671,035       12.6%


  12,584,274    5,810,570     4,038,342     63,433,321     57,481,093     5,952,228       10.4%


 $32,817,403   $8,453,279    $4,038,342   $256,623,942   $229,000,679   $27,623,263       12.1%




City Of Bellingham, Washington                                                                    Page 43
2006 Adopted Budget
Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds

                                                                                Change from
                                      2004         2005            2006        2005 Adopted
                                     Actual     Adopted          Budget      Amount       Percent

General Fund (001)
  Beginning Reserves                9,279,644    6,292,229       9,974,886     3,682,657     58.5%
  Revenues:
  Taxes                            39,079,012   40,482,638      43,202,000     2,719,362      6.7%
  Licenses and Permits                630,964      588,300         713,593       125,293     21.3%
  Intergovernmental Revenues        1,913,761    1,914,634       2,129,339       214,705     11.2%
  Goods and Services Charges        4,875,017    6,223,310       6,250,272        26,962      0.4%
  Fines                             1,505,717    1,610,470       1,451,000      (159,470)    -9.9%
  Miscellaneous                     1,044,655      805,711         933,012       127,301     15.8%
  Non Revenues                          7,532        8,955           9,113           158      1.8%
  Other Financing Sources           1,791,524      373,425         428,625        55,200     14.8%
  Subtotal of Revenues             50,848,182   52,007,443      55,116,954     3,109,511      6.0%
Fund Total Sources                 60,127,826   58,299,672      65,091,840     6,792,168     11.7%
  Expenditures:
  Salaries and Benefits            32,373,635   34,771,571      36,562,530     1,790,959      5.2%
  Supplies                          1,706,909    2,098,468       2,099,162           694      0.0%
  Services                          4,549,526    5,589,825       4,388,405    (1,201,420)   -21.5%
  Intergovernmental Expenditures    6,524,036    5,241,416       5,200,241       (41,175)    -0.8%
  Capital                             511,278       72,150         498,196       426,046    590.5%
  Interfund                         4,493,610    5,074,970       5,412,156       337,186      6.6%
  Subtotal of Expenditures         50,158,994   52,848,400      54,160,690     1,312,290      2.5%
  Ending Reserves                   9,764,068    5,451,272      10,931,150     5,479,878    100.5%
Fund Total Uses                    59,923,062   58,299,672      65,091,840     6,792,168     11.7%

Street Fund (111)
  Beginning Reserves                9,380,240    3,750,329       4,807,498     1,057,169     28.2%
  Revenues:
  Taxes                             7,812,575    7,962,000       8,750,000       788,000       9.9%
  Licenses and Permits                 55,089       49,000          51,500         2,500       5.1%
  Intergovernmental Revenues        1,622,886    4,408,788       3,714,921      (693,867)    -15.7%
  Goods and Services Charges        6,020,178    6,126,467       6,355,770       229,303       3.7%
  Miscellaneous                       305,059      462,600         289,556      (173,044)    -37.4%
  Other Financing Sources           1,102,343          -               -             -            --
  Subtotal of Revenues             16,918,130   19,008,855      19,161,747       152,892       0.8%
Fund Total Sources                 26,298,370   22,759,184      23,969,245     1,210,061       5.3%
  Expenditures:
  Salaries and Benefits             5,343,505    6,306,715       6,392,560        85,845       1.4%
  Supplies                            167,702      152,830         217,872        65,042      42.6%
  Services                          2,513,924    3,285,916       3,266,101       (19,815)     -0.6%
  Intergovernmental Expenditures      654,145    2,693,181         644,114    (2,049,067)    -76.1%
  Capital                           3,539,589    4,710,000       9,180,000     4,470,000      94.9%
  Principal and Interest              119,474      119,475             -        (119,475)   -100.0%
  Interfund                         3,158,062    3,638,870       3,538,985       (99,885)     -2.7%
  Subtotal of Expenditures         15,496,401   20,906,987      23,239,632     2,332,645      11.2%
  Ending Reserves                  10,766,392    1,852,197         729,613    (1,122,584)    -60.6%
Fund Total Uses                    26,262,793   22,759,184      23,969,245     1,210,061       5.3%




Page 44                                                      City Of Bellingham, Washington
                                                                       2006 Adopted Budget
                                                                         Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                             Change from
                                        2004         2005      2006         2005 Adopted
                                       Actual     Adopted    Budget       Amount       Percent

Arterial St Construction Fund (112)
  Beginning Reserves                   623,467     205,669    589,933        384,264       186.8%
  Revenues:
  Intergovernmental Revenues            458,300    476,000     458,300       (17,700)       -3.7%
  Miscellaneous                          18,830      7,000      18,830        11,830       169.0%
  Subtotal of Revenues                  477,130    483,000     477,130        (5,870)       -1.2%
Fund Total Sources                    1,100,597    688,669   1,067,063       378,394        54.9%
  Expenditures:
  Services                                9,173        -           -             -              --
  Intergovernmental Expenditures        209,830    211,619     209,323        (2,296)       -1.1%
  Capital                                 7,000        -       300,000       300,000            --
  Interfund                               4,091        -           -             -              --
  Subtotal of Expenditures              230,094    211,619     509,323       297,704       140.7%
  Ending Reserves                       870,502    477,050     557,740        80,690        16.9%
Fund Total Uses                       1,100,596    688,669   1,067,063       378,394        54.9%

Paths & Trails Reserve Fund (113)
  Beginning Reserves                    12,546      10,365     17,922          7,557        72.9%
  Revenues:
  Miscellaneous                            310         165        310            145        87.9%
  Other Financing Sources                4,901       4,700      4,700            -           0.0%
  Subtotal of Revenues                   5,211       4,865      5,010            145         3.0%
Fund Total Sources                      17,757      15,230     22,932          7,702        50.6%
  Ending Reserves                       17,757      15,230     22,932          7,702        50.6%
Fund Total Uses                         17,757      15,230     22,932          7,702        50.6%

Parksite Acquisition Fund (123)
  Beginning Reserves                   174,491      92,691     45,209         (47,482)     -51.2%
  Revenues:
  Goods and Services Charges            27,982       6,000     27,982          21,982      366.4%
  Miscellaneous                          4,536       2,200      4,536           2,336      106.2%
  Subtotal of Revenues                  32,518       8,200     32,518          24,318      296.6%
Fund Total Sources                     207,009     100,891     77,727         (23,164)     -23.0%
  Expenditures:
  Capital                                  -        80,000     30,000         (50,000)     -62.5%
  Subtotal of Expenditures                 -        80,000     30,000         (50,000)     -62.5%
  Ending Reserves                      207,009      20,891     47,727          26,836      128.5%
Fund Total Uses                        207,009     100,891     77,727         (23,164)     -23.0%




City Of Bellingham, Washington                                                         Page 45
2006 Adopted Budget
Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)

                                                                              Change from
                                     2004         2005           2006        2005 Adopted
                                    Actual     Adopted         Budget      Amount       Percent

Computer Reserve Fund (124)
  Beginning Reserves               1,068,911    917,536        1,310,405      392,869      42.8%
  Revenues:
  Miscellaneous                       29,585      23,300          32,585        9,285      39.8%
  Other Financing Sources            163,000     582,000         590,000        8,000       1.4%
  Subtotal of Revenues               192,585     605,300         622,585       17,285       2.9%
Fund Total Sources                 1,261,496   1,522,836       1,932,990      410,154      26.9%
  Expenditures:
  Supplies                             6,846         -               -            -            --
  Services                            10,729         -               -            -            --
  Intergovernmental Expenditures         -        20,000          20,000          -         0.0%
  Capital                            169,103     320,500         526,000      205,500      64.1%
  Subtotal of Expenditures           186,678     340,500         546,000      205,500      60.4%
  Ending Reserves                  1,074,819   1,182,336       1,386,990      204,654      17.3%
Fund Total Uses                    1,261,497   1,522,836       1,932,990      410,154      26.9%

Capital Maint Fund (125)
  Beginning Reserves                635,100     159,104         378,153       219,049     137.7%
  Revenues:
  Intergovernmental Revenues       2,610,000        -               -              -           --
  Miscellaneous                       59,842     17,000          72,000         55,000    323.5%
  Other Financing Sources            762,000    433,000         250,000       (183,000)   -42.3%
  Subtotal of Revenues             3,431,842    450,000         322,000       (128,000)   -28.4%
Fund Total Sources                 4,066,942    609,104         700,153         91,049     14.9%
  Expenditures:
  Supplies                             4,454        -               -              -           --
  Services                           437,792    433,000         205,800       (227,200)   -52.5%
  Intergovernmental Expenditures      90,000        -               -              -           --
  Capital                                -          -            53,500         53,500         --
  Interfund                           42,383        -               -              -           --
  Subtotal of Expenditures           574,629    433,000         259,300       (173,700)   -40.1%
  Ending Reserves                  3,492,311    176,104         440,853        264,749    150.3%
Fund Total Uses                    4,066,940    609,104         700,153         91,049     14.9%

Library Gift Fund (126)
  Beginning Reserves                 23,756      23,756          30,461          6,705     28.2%
  Revenues:
  Miscellaneous                      16,792      15,000          15,000            -        0.0%
  Subtotal of Revenues               16,792      15,000          15,000            -        0.0%
Fund Total Sources                   40,548      38,756          45,461          6,705     17.3%
  Expenditures:
  Supplies                           10,087      15,000          15,000            -        0.0%
  Subtotal of Expenditures           10,087      15,000          15,000            -        0.0%
  Ending Reserves                    30,461      23,756          30,461          6,705     28.2%
Fund Total Uses                      40,548      38,756          45,461          6,705     17.3%




Page 46                                                    City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                                                               Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)

                                                                                   Change from
                                             2004         2005       2006         2005 Adopted
                                            Actual     Adopted     Budget       Amount       Percent

Squalicum Park/Olympic Fund (132)
  Beginning Reserves                      1,012,444       2,444      17,827         15,383        629.4%
  Revenues:
  Intergovernmental Revenues                    -           -       300,000        300,000             --
  Miscellaneous                              24,384      13,000      24,384         11,384         87.6%
  Other Financing Sources                       -           -       200,000        200,000             --
  Subtotal of Revenues                       24,384      13,000     524,384        511,384       3933.7%
Fund Total Sources                        1,036,828      15,444     542,211        526,767       3410.8%
  Expenditures:
  Capital                                    94,388         -       500,000        500,000             --
  Subtotal of Expenditures                   94,388         -       500,000        500,000             --
  Ending Reserves                           942,439      15,444      42,211         26,767        173.3%
Fund Total Uses                           1,036,827      15,444     542,211        526,767       3410.8%

1st 1/4% Real Estate Excise Tax Fund (141)
  Beginning Reserves                       2,324,696    350,188    2,707,866      2,357,678       673.3%
  Revenues:
  Taxes                                    1,735,573   1,586,000   1,850,000        264,000        16.6%
  Intergovernmental Revenues                  29,495         -           -              -              --
  Miscellaneous                               68,147       5,000      77,000         72,000      1440.0%
  Other Financing Sources                        -           -        30,000         30,000            --
  Subtotal of Revenues                     1,833,215   1,591,000   1,957,000        366,000        23.0%
Fund Total Sources                         4,157,911   1,941,188   4,664,866      2,723,678       140.3%
  Expenditures:
  Salaries and Benefits                      94,627          -           -              -              --
  Supplies                                    8,352        5,000       5,000            -           0.0%
  Services                                  237,322      523,800     423,500       (100,300)      -19.1%
  Intergovernmental Expenditures                -            -     1,600,000      1,600,000            --
  Capital                                   447,971      850,000   1,406,250        556,250        65.4%
  Interfund                                 177,199          -        12,000         12,000            --
  Subtotal of Expenditures                  965,471    1,378,800   3,446,750      2,067,950       150.0%
  Ending Reserves                         3,192,441      562,388   1,218,116        655,728       116.6%
Fund Total Uses                           4,157,912    1,941,188   4,664,866      2,723,678       140.3%




City Of Bellingham, Washington                                                                Page 47
2006 Adopted Budget
Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)

                                                                                       Change from
                                              2004         2005           2006        2005 Adopted
                                             Actual     Adopted         Budget      Amount       Percent

2nd 1/4% Real Estate Excise Tax Fund (142)
  Beginning Reserves                     3,516,090      2,084,420       2,087,589         3,169       0.2%
  Revenues:
  Taxes                                  1,735,573      1,586,000       1,850,000       264,000      16.6%
  Intergovernmental Revenues               222,530            -           400,000       400,000          --
  Goods and Services Charges                 1,440            -               -             -            --
  Miscellaneous                             98,046         31,000          98,000        67,000     216.1%
  Other Financing Sources                      -              -           400,000       400,000          --
  Subtotal of Revenues                   2,057,589      1,617,000       2,748,000     1,131,000      69.9%
Fund Total Sources                       5,573,679      3,701,420       4,835,589     1,134,169      30.6%
  Expenditures:
  Services                                    231,759     170,000         510,000       340,000     200.0%
  Intergovernmental Expenditures                1,390     479,256       1,016,092       536,836     112.0%
  Capital                                     864,560     950,000       1,780,000       830,000      87.4%
  Interfund                                   115,986      10,000         110,500       100,500    1005.0%
  Subtotal of Expenditures                  1,213,695   1,609,256       3,416,592     1,807,336     112.3%
  Ending Reserves                           4,359,983   2,092,164       1,418,997      (673,167)    -32.2%
Fund Total Uses                             5,573,678   3,701,420       4,835,589     1,134,169      30.6%

Police Federal Equitable Share Fund (151)
  Beginning Reserves                          27,510       2,096          60,672        58,576     2794.7%
  Revenues:
  Intergovernmental Revenues                   9,238         -               -             -             --
  Miscellaneous                                  595          52           2,120         2,068     3976.9%
  Subtotal of Revenues                         9,833          52           2,120         2,068     3976.9%
Fund Total Sources                            37,343       2,148          62,792        60,644     2823.3%
  Expenditures:
  Supplies                                     1,714         -               -             -             --
  Services                                    16,148         -               -             -             --
  Subtotal of Expenditures                    17,862         -               -             -             --
  Ending Reserves                             19,482       2,148          62,792        60,644     2823.3%
Fund Total Uses                               37,344       2,148          62,792        60,644     2823.3%

Asset Forfeiture/Drug Enforce. Fund (152)
  Beginning Reserves                        672,916       98,911         296,386       197,475      199.6%
  Revenues:
  Miscellaneous                             330,597      229,600         110,374       (119,226)    -51.9%
  Subtotal of Revenues                      330,597      229,600         110,374       (119,226)    -51.9%
Fund Total Sources                        1,003,513      328,511         406,760         78,249      23.8%
  Expenditures:
  Supplies                                    152,568     78,813          80,912          2,099       2.7%
  Services                                    176,393     63,092         149,000         85,908     136.2%
  Intergovernmental Expenditures               26,583     25,000          17,500         (7,500)    -30.0%
  Capital                                     119,717     30,000          36,000          6,000      20.0%
  Interfund                                     2,398     20,122          22,572          2,450      12.2%
  Subtotal of Expenditures                    477,659    217,027         305,984         88,957      41.0%
  Ending Reserves                             525,853    111,484         100,776        (10,708)     -9.6%
Fund Total Uses                             1,003,512    328,511         406,760         78,249      23.8%




Page 48                                                             City Of Bellingham, Washington
                                                                              2006 Adopted Budget
                                                                        Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                            Change from
                                      2004         2005       2006         2005 Adopted
                                     Actual     Adopted     Budget       Amount       Percent

Criminal Justice Fund (153)
  Beginning Reserves                 674,146     464,296     418,191         (46,105)      -9.9%
  Revenues:
  Intergovernmental Revenues         224,371     133,237     112,230         (21,007)     -15.8%
  Miscellaneous                       15,249       8,800      11,506           2,706       30.8%
  Subtotal of Revenues               239,620     142,037     123,736         (18,301)     -12.9%
Fund Total Sources                   913,766     606,333     541,927         (64,406)     -10.6%
  Expenditures:
  Intergovernmental Expenditures     354,187     283,425     291,125           7,700        2.7%
  Subtotal of Expenditures           354,187     283,425     291,125           7,700        2.7%
  Ending Reserves                    599,579     322,908     250,802         (72,106)     -22.3%
Fund Total Uses                      953,766     606,333     541,927         (64,406)     -10.6%

Public Safety Dispatch Fund (160)
  Beginning Reserves                1,249,101    713,721    1,197,066       483,345       67.7%
  Revenues:
  Intergovernmental Revenues        1,902,348   1,913,072   1,988,662        75,590        4.0%
  Goods and Services Charges        1,344,180   1,411,830   1,461,825        49,995        3.5%
  Miscellaneous                        24,330      17,348      24,330         6,982       40.2%
  Other Financing Sources              29,092      20,567      31,783        11,216       54.5%
  Subtotal of Revenues              3,299,950   3,362,817   3,506,600       143,783        4.3%
Fund Total Sources                  4,549,051   4,076,538   4,703,666       627,128       15.4%
  Expenditures:
  Salaries and Benefits             2,372,811   2,518,486   2,640,515       122,029        4.8%
  Supplies                             49,625      42,870      48,350         5,480       12.8%
  Services                            332,920     476,856     467,879        (8,977)      -1.9%
  Intergovernmental Expenditures       14,998      14,998      14,998           -          0.0%
  Capital                             465,279         -        15,000        15,000           --
  Interfund                           175,417     310,408     355,340        44,932       14.5%
  Subtotal of Expenditures          3,411,050   3,363,618   3,542,082       178,464        5.3%
  Ending Reserves                   1,146,918     712,920   1,161,584       448,664       62.9%
Fund Total Uses                     4,557,968   4,076,538   4,703,666       627,128       15.4%




City Of Bellingham, Washington                                                        Page 49
2006 Adopted Budget
Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                                    Change from
                                           2004         2005           2006        2005 Adopted
                                          Actual     Adopted         Budget      Amount       Percent

Public Facilities District Fund (165)
  Beginning Reserves                      231,013    3,800,692       3,948,486      147,794        3.9%
  Revenues:
  Taxes                                    899,876     890,000         992,000      102,000       11.5%
  Goods and Services Charges                   927         -               960          960           --
  Miscellaneous                             39,043      41,700          39,817       (1,883)      -4.5%
  Non Revenues                           5,000,000         -               -            -             --
  Other Financing Sources                9,370,000         -               -            -             --
  Subtotal of Revenues                  15,309,846     931,700       1,032,777      101,077       10.8%
Fund Total Sources                      15,540,859   4,732,392       4,981,263      248,871        5.3%
  Expenditures:
  Salaries and Benefits                     29,289      80,204          84,421         4,217       5.3%
  Supplies                                  64,354      10,600          12,819         2,219      20.9%
  Services                                 240,672     793,810         429,688      (364,122)    -45.9%
  Intergovernmental Expenditures               136     532,104         541,808         9,704       1.8%
  Capital                                4,489,263     180,000       2,000,000     1,820,000    1011.1%
  Principal and Interest                 5,935,708         -               -             -            --
  Interfund                                 89,625      41,741          51,615         9,874      23.7%
  Subtotal of Expenditures              10,849,047   1,638,459       3,120,351     1,481,892      90.4%
  Ending Reserves                        4,692,565   3,093,933       1,860,912    (1,233,021)    -39.9%
Fund Total Uses                         15,541,612   4,732,392       4,981,263       248,871       5.3%

Greenways Fund (171)
  Beginning Reserves                      538,542          -               -             -              --
  Revenues:
  Intergovernmental Revenues                   26          -               -             -              --
  Miscellaneous                            12,778          -               -             -              --
  Subtotal of Revenues                     12,804          -               -             -              --
Fund Total Sources                        551,346          -               -             -              --
  Expenditures:
  Salaries and Benefits                     5,043          -               -             -              --
  Services                                     12          -               -             -              --
  Capital                                  63,391          -               -             -              --
  Subtotal of Expenditures                 68,446          -               -             -              --
  Ending Reserves                         474,695          -               -             -              --
Fund Total Uses                           543,141          -               -             -              --




Page 50                                                          City Of Bellingham, Washington
                                                                           2006 Adopted Budget
                                                                       Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                           Change from
                                     2004         2005       2006         2005 Adopted
                                    Actual     Adopted     Budget       Amount       Percent

Beyond Greenways Fund (172)
  Beginning Reserves               3,546,754   1,111,774   1,295,403       183,629       16.5%
  Revenues:
  Taxes                            2,411,055   1,431,955   1,506,300         74,345        5.2%
  Intergovernmental Revenues         566,382   1,527,000     500,000     (1,027,000)     -67.3%
  Goods and Services Charges              16         -           -              -             --
  Miscellaneous                       75,554      30,000      55,680         25,680       85.6%
  Subtotal of Revenues             3,053,007   2,988,955   2,061,980       (926,975)     -31.0%
Fund Total Sources                 6,599,761   4,100,729   3,357,383       (743,346)     -18.1%

  Expenditures:
  Salaries and Benefits              103,372     105,903      77,433        (28,470)     -26.9%
  Supplies                             1,534         350         146           (204)     -58.3%
  Services                            58,959       4,202       5,261          1,059       25.2%
  Intergovernmental Expenditures          69     300,000          72       (299,928)    -100.0%
  Capital                          4,683,485   2,869,337   1,900,000       (969,337)     -33.8%
  Interfund                              -           276      56,520         56,244    20378.3%
  Subtotal of Expenditures         4,847,419   3,280,068   2,039,432     (1,240,636)     -37.8%
  Ending Reserves                  1,760,705     820,661   1,317,951        497,290       60.6%
Fund Total Uses                    6,608,124   4,100,729   3,357,383       (743,346)     -18.1%

Sportsplex Fund (178)
  Beginning Reserves                     -       15,500       3,173         (12,327)     -79.5%
  Revenues:
  Miscellaneous                       2,798         375       2,183           1,808      482.1%
  Subtotal of Revenues                2,798         375       2,183           1,808      482.1%
Fund Total Sources                    2,798      15,875       5,356         (10,519)     -66.3%
  Ending Reserves                     2,798      15,875       5,356         (10,519)     -66.3%
Fund Total Uses                       2,798      15,875       5,356         (10,519)     -66.3%

Tourism Fund (180)
  Beginning Reserves                212,297     260,000     286,215         26,215       10.1%
  Revenues:
  Taxes                              792,518     760,000     827,760        67,760         8.9%
  Miscellaneous                        5,556       4,400       8,900         4,500       102.3%
  Subtotal of Revenues               798,074     764,400     836,660        72,260         9.5%
Fund Total Sources                 1,010,371   1,024,400   1,122,875        98,475         9.6%
  Expenditures:
  Supplies                                35         776       1,100           324       41.8%
  Services                           707,549     826,543     784,512       (42,031)      -5.1%
  Intergovernmental Expenditures         -           -       100,000       100,000           --
  Interfund                           15,870      12,421      15,521         3,100       25.0%
  Subtotal of Expenditures           723,454     839,740     901,133        61,393        7.3%
  Ending Reserves                    286,917     184,660     221,742        37,082       20.1%
Fund Total Uses                    1,010,371   1,024,400   1,122,875        98,475        9.6%




City Of Bellingham, Washington                                                       Page 51
2006 Adopted Budget
Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                                   Change from
                                          2004         2005           2006        2005 Adopted
                                         Actual     Adopted         Budget      Amount       Percent

Housing/Community Development Fund (190)
  Beginning Reserves                    468,799           -               -             -              --
  Revenues:
  Intergovernmental Revenues          1,142,010     1,016,000         950,000       (66,000)    -6.5%
  Goods and Services Charges            445,405       364,679         348,700       (15,979)    -4.4%
  Miscellaneous                          52,013        39,161          36,976        (2,185)    -5.6%
  Other Financing Sources                83,677        67,370         153,796        86,426    128.3%
  Subtotal of Revenues                1,723,105     1,487,210       1,489,472         2,262      0.2%
Fund Total Sources                    2,191,904     1,487,210       1,489,472         2,262      0.2%
  Expenditures:
  Salaries and Benefits                   618,828     722,312         627,012      (95,300)    -13.2%
  Supplies                                 18,610      15,315          18,005        2,690      17.6%
  Services                                547,171     567,807         551,584      (16,223)     -2.9%
  Intergovernmental Expenditures            9,500       4,000           6,290        2,290      57.3%
  Capital                                 311,491      75,000          79,535        4,535       6.0%
  Interfund                               117,772     102,776         207,046      104,270     101.5%
  Subtotal of Expenditures              1,623,372   1,487,210       1,489,472        2,262       0.2%
  Ending Reserves                         550,742         -               -            -            --
Fund Total Uses                         2,174,114   1,487,210       1,489,472        2,262       0.2%

92 Fire GO Bond Redemption Fund (211)
  Beginning Reserves                     208,444     205,606              -        (205,606)   -100.0%
  Revenues:
  Taxes                                  183,551         -                -             -            --
  Miscellaneous                            6,620       2,838              -          (2,838)   -100.0%
  Subtotal of Revenues                   190,171       2,838              -          (2,838)   -100.0%
Fund Total Sources                       398,615     208,444              -        (208,444)   -100.0%
  Expenditures:
  Principal and Interest                 186,848     186,588              -        (186,588)   -100.0%
  Subtotal of Expenditures               186,848     186,588              -        (186,588)   -100.0%
  Ending Reserves                        211,768      21,856              -         (21,856)   -100.0%
Fund Total Uses                          398,616     208,444              -        (208,444)   -100.0%


2001 Fire UTGO Bond Fund (214)
  Beginning Reserves                     329,138       7,708          12,413          4,705     61.0%
  Revenues:
  Taxes                                   21,862     344,350         348,250          3,900      1.1%
  Miscellaneous                            7,301       2,500           3,300            800     32.0%
  Subtotal of Revenues                    29,163     346,850         351,550          4,700      1.4%
Fund Total Sources                       358,301     354,558         363,963          9,405      2.7%
  Expenditures:
  Principal and Interest                 346,309     346,430         346,030           (400)    -0.1%
  Subtotal of Expenditures               346,309     346,430         346,030           (400)    -0.1%
  Ending Reserves                         11,993       8,128          17,933          9,805    120.6%
Fund Total Uses                          358,302     354,558         363,963          9,405      2.7%




Page 52                                                         City Of Bellingham, Washington
                                                                          2006 Adopted Budget
                                                                            Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                                Change from
                                             2004         2005      2006       2005 Adopted
                                            Actual     Adopted    Budget     Amount       Percent

94 Aquatic Facility G.O. Bond Fund (216)
  Beginning Reserves                          5,113         -         -             -               --
  Revenues:
  Miscellaneous                                  286        -         -             -               --
  Other Financing Sources                  1,104,545        -         -             -               --
  Subtotal of Revenues                     1,104,831        -         -             -               --
Fund Total Sources                         1,109,944        -         -             -               --
  Expenditures:
  Principal and Interest                   1,109,950        -         -             -               --
  Subtotal of Expenditures                 1,109,950        -         -             -               --
Fund Total Uses                            1,109,950        -         -             -      --


1999 LTGO Bond Redemption Fund (222)
  Beginning Reserves                            444         444       539            95         21.4%
  Revenues:
  Miscellaneous                                  14          11        19             8         72.7%
  Other Financing Sources                   397,615     551,594   558,524         6,930          1.3%
  Subtotal of Revenues                      397,629     551,605   558,543         6,938          1.3%
Fund Total Sources                          398,073     552,049   559,082         7,033          1.3%
  Expenditures:
  Principal and Interest                    397,534     551,605   558,543         6,938          1.3%
  Subtotal of Expenditures                  397,534     551,605   558,543         6,938          1.3%
  Ending Reserves                               539         444       539            95         21.4%
Fund Total Uses                             398,073     552,049   559,082         7,033          1.3%

Refunding GO Bonds 1996 Fund (223)
  Beginning Reserves                         15,179      15,179    15,224            45         0.3%
  Revenues:
  Miscellaneous                              46,418      47,252    46,873          (379)        -0.8%
  Other Financing Sources                   482,590     479,191   480,820         1,629          0.3%
  Subtotal of Revenues                      529,008     526,443   527,693         1,250          0.2%
Fund Total Sources                          544,187     541,622   542,917         1,295          0.2%
  Expenditures:
  Principal and Interest                    528,963     526,443   527,693         1,250         0.2%
  Subtotal of Expenditures                  528,963     526,443   527,693         1,250         0.2%
  Ending Reserves                            15,224      15,179    15,224            45         0.3%
Fund Total Uses                             544,187     541,622   542,917         1,295         0.2%

Sportsplex Acquistion Debt Fund (224)
  Beginning Reserves                             -       21,275    23,248         1,973         9.3%
  Revenues:
  Miscellaneous                             268,619     255,960   259,002         3,042         1.2%
  Other Financing Sources                     7,410         -         -             -              --
  Subtotal of Revenues                      276,029     255,960   259,002         3,042         1.2%
Fund Total Sources                          276,029     277,235   282,250         5,015         1.8%
  Expenditures:
  Principal and Interest                    253,046     255,694   258,894         3,200         1.3%
  Subtotal of Expenditures                  253,046     255,694   258,894         3,200         1.3%
  Ending Reserves                            22,982      21,541    23,356         1,815         8.4%
Fund Total Uses                             276,028     277,235   282,250         5,015         1.8%




City Of Bellingham, Washington                                                            Page 53
2006 Adopted Budget
Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                                  Change from
                                        2004        2005           2006          2005 Adopted
                                       Actual    Adopted         Budget        Amount       Percent

2004 PFD/Civic Field LTGO Fund (225)
  Revenues:
  Other Financing Sources                  -     1,121,131       1,157,900         36,769       3.3%
  Subtotal of Revenues                     -     1,121,131       1,157,900         36,769       3.3%
Fund Total Sources                         -     1,121,131       1,157,900         36,769       3.3%
  Expenditures:
  Principal and Interest                   -     1,121,131       1,157,900         36,769       3.3%
  Subtotal of Expenditures                 -     1,121,131       1,157,900         36,769       3.3%
Fund Total Uses                            -     1,121,131       1,157,900         36,769       3.3%

Criminal Justice Debt Fund (230)
  Beginning Reserves                   249,386         -               -              -               --
  Revenues:
  Miscellaneous                          8,796         -               -              -               --
  Other Financing Sources              264,050         -               -              -               --
  Subtotal of Revenues                 272,846         -               -              -               --
Fund Total Sources                     522,232         -               -              -               --
  Expenditures:
  Principal and Interest               522,500         -               -              -               --
  Subtotal of Expenditures             522,500         -               -              -               --
Fund Total Uses                        522,500         -               -              -               --

Drake Note Fund (231)
  Beginning Reserves                        47         47                  6          (41)     -87.2%
  Revenues:
  Miscellaneous                            208        325             210            (115)     -35.4%
  Other Financing Sources               17,714     17,639          17,754             115        0.7%
  Subtotal of Revenues                  17,922     17,964          17,964             -          0.0%
Fund Total Sources                      17,969     18,011          17,970             (41)      -0.2%
  Expenditures:
  Principal and Interest                17,964     17,964          17,964             -          0.0%
  Subtotal of Expenditures              17,964     17,964          17,964             -          0.0%
  Ending Reserves                            6         47               6             (41)     -87.2%
Fund Total Uses                         17,970     18,011          17,970             (41)      -0.2%

PW State Loan-Roeder Ave Fund (232)
  Beginning Reserves                       232        232             278              46      19.8%
  Revenues:
  Miscellaneous                         21,941     21,684          21,474            (210)      -1.0%
  Other Financing Sources               32,842     32,527          32,211            (316)      -1.0%
  Subtotal of Revenues                  54,783     54,211          53,685            (526)      -1.0%
Fund Total Sources                      55,015     54,443          53,963            (480)      -0.9%
  Expenditures:
  Principal and Interest                54,737     54,211          53,685            (526)     -1.0%
  Subtotal of Expenditures              54,737     54,211          53,685            (526)     -1.0%
  Ending Reserves                          278        232             278              46      19.8%
Fund Total Uses                         55,015     54,443          53,963            (480)     -0.9%




Page 54                                                      City Of Bellingham, Washington
                                                                       2006 Adopted Budget
                                                                      Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                          Change from
                                        2004        2005      2006       2005 Adopted
                                       Actual    Adopted    Budget     Amount       Percent

PW State Loan-Woburn St Fund (233)
  Beginning Reserves                       341        341       350              9         2.6%
  Revenues:
  Miscellaneous                              8        -         -             -               --
  Other Financing Sources               55,571     55,041    54,512          (529)        -1.0%
  Subtotal of Revenues                  55,579     55,041    54,512          (529)        -1.0%
Fund Total Sources                      55,920     55,382    54,862          (520)        -0.9%
  Expenditures:
  Principal and Interest                55,570     55,041    54,512          (529)        -1.0%
  Subtotal of Expenditures              55,570     55,041    54,512          (529)        -1.0%
  Ending Reserves                          350        341       350             9          2.6%
Fund Total Uses                         55,920     55,382    54,862          (520)        -0.9%

CERB Loans Fund (234)
  Revenues:
  Goods and Services Charges            79,908     86,009    83,871         (2,138)       -2.5%
  Miscellaneous                         41,637     35,538    28,972         (6,566)      -18.5%
  Subtotal of Revenues                 121,545    121,547   112,843         (8,704)       -7.2%
Fund Total Sources                     121,545    121,547   112,843         (8,704)       -7.2%
  Expenditures:
  Principal and Interest               121,545    121,547   112,843         (8,704)       -7.2%
  Subtotal of Expenditures             121,545    121,547   112,843         (8,704)       -7.2%
Fund Total Uses                        121,545    121,547   112,843         (8,704)       -7.2%

PW Trust Loan-Str Overlay Fund (235)
  Beginning Reserves                       810        810       831            21          2.6%
  Revenues:
  Miscellaneous                             20        -         -             -               --
  Other Financing Sources              153,585    170,671   169,889          (782)        -0.5%
  Subtotal of Revenues                 153,605    170,671   169,889          (782)        -0.5%
Fund Total Sources                     154,415    171,481   170,720          (761)        -0.4%
  Expenditures:
  Principal and Interest               153,585    170,671   169,889          (782)        -0.5%
  Subtotal of Expenditures             153,585    170,671   169,889          (782)        -0.5%
  Ending Reserves                          831        810       831            21          2.6%
Fund Total Uses                        154,416    171,481   170,720          (761)        -0.4%

LID Guaranty Fund (245)
  Beginning Reserves                   481,161    468,161   482,011        13,850          3.0%
  Revenues:
  Miscellaneous                         15,432     12,000    16,870         4,870        40.6%
  Subtotal of Revenues                  15,432     12,000    16,870         4,870        40.6%
Fund Total Sources                     496,593    480,161   498,881        18,720         3.9%
  Expenditures:
  Services                                 -       24,750       -          (24,750)     -100.0%
  Principal and Interest                 1,750        -         -              -              --
  Subtotal of Expenditures               1,750     24,750       -          (24,750)     -100.0%
  Ending Reserves                      494,761    455,411   498,881         43,470         9.5%
Fund Total Uses                        496,511    480,161   498,881         18,720         3.9%




City Of Bellingham, Washington                                                       Page 55
2006 Adopted Budget
Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                                Change from
                                           2004        2005          2006      2005 Adopted
                                          Actual    Adopted        Budget    Amount       Percent

#1099 Barkley Blvd Fund (264)
  Beginning Reserves                       26,995     26,995           -         (26,995)   -100.0%
  Revenues:
  Miscellaneous                           379,849        -             -             -            --
  Subtotal of Revenues                    379,849        -             -             -            --
Fund Total Sources                        406,844     26,995           -         (26,995)   -100.0%
  Expenditures:
  Principal and Interest                  424,690        -             -             -            --
  Subtotal of Expenditures                424,690        -             -             -            --
  Ending Reserves                          12,821     26,995           -         (26,995)   -100.0%
Fund Total Uses                           437,511     26,995           -         (26,995)   -100.0%

#1106 Bakerview Rd Fund (270)
  Beginning Reserves                        6,687      6,687           -          (6,687)   -100.0%
  Revenues:
  Miscellaneous                           329,875        -             -             -            --
  Subtotal of Revenues                    329,875        -             -             -            --
Fund Total Sources                        336,562      6,687           -          (6,687)   -100.0%
  Expenditures:
  Principal and Interest                  344,954        -             -             -            --
  Subtotal of Expenditures                344,954        -             -             -            --
  Ending Reserves                           8,593      6,687           -          (6,687)   -100.0%
Fund Total Uses                           353,547      6,687           -          (6,687)   -100.0%

#1107/1108 Telegraph/Barkley Fund (271)
  Beginning Reserves                       64,091     64,091           -         (64,091)   -100.0%
  Revenues:
  Miscellaneous                           130,880        -             -             -            --
  Subtotal of Revenues                    130,880        -             -             -            --
Fund Total Sources                        194,971     64,091           -         (64,091)   -100.0%
  Expenditures:
  Principal and Interest                  198,358        -             -             -            --
  Subtotal of Expenditures                198,358        -             -             -            --
  Ending Reserves                           5,320     64,091           -         (64,091)   -100.0%
Fund Total Uses                           203,678     64,091           -         (64,091)   -100.0%




Page 56                                                        City Of Bellingham, Washington
                                                                         2006 Adopted Budget
                                                                          Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                              Change from
                                       2004          2005       2006         2005 Adopted
                                      Actual      Adopted     Budget       Amount       Percent

City Hall Annex Fund (313)
   Beginning Reserves                 160,376           -       20,112         20,112             --
   Revenues:
   Miscellaneous                        3,658           -        1,080          1,080             --
   Subtotal of Revenues                 3,658           -        1,080          1,080             --
Fund Total Sources                    164,034           -       21,192         21,192             --
  Expenditures:
  Services                             58,597           -          -              -               --
  Intergovernmental Expenditures       45,000           -          -              -               --
  Capital                              15,145           -          -              -               --
  Interfund                             1,930           -          -              -               --
  Subtotal of Expenditures            120,672           -          -              -               --
  Ending Reserves                      43,364           -       21,192         21,192             --
Fund Total Uses                       164,036           -       21,192         21,192             --

Civic Field Improvement Fund (341)
  Beginning Reserves                  720,723        1,103          -           (1,103)    -100.0%
  Revenues:
  Miscellaneous                         37,447       27,302         -          (27,302)    -100.0%
  Other Financing Sources            6,028,553    8,240,777   1,031,455     (7,209,322)     -87.5%
  Subtotal of Revenues               6,066,000    8,268,079   1,031,455     (7,236,624)     -87.5%
Fund Total Sources                   6,786,723    8,269,182   1,031,455     (7,237,727)     -87.5%
  Expenditures:
  Salaries and Benefits                 12,925       30,500         -          (30,500)    -100.0%
  Services                             599,048          -           -              -             --
  Capital                                9,419    7,965,777   1,031,455     (6,934,322)     -87.1%
  Principal and Interest               (82,947)         -           -              -             --
  Subtotal of Expenditures             538,445    7,996,277   1,031,455     (6,964,822)     -87.1%
  Ending Reserves                    6,248,277      272,905         -         (272,905)    -100.0%
Fund Total Uses                      6,786,722    8,269,182   1,031,455     (7,237,727)     -87.5%

Sportsplex Acquistion Fund (342)
  Revenues:
  Miscellaneous                          1,976          -           -              -              --
  Other Financing Sources            4,307,590          -           -              -              --
  Subtotal of Revenues               4,309,566          -           -              -              --
Fund Total Sources                   4,309,566          -           -              -              --
  Expenditures:
  Capital                            4,200,000          -           -              -              --
  Principal and Interest               109,566          -           -              -              --
  Subtotal of Expenditures           4,309,566          -           -              -              --
Fund Total Uses                      4,309,566          -           -              -              --




City Of Bellingham, Washington                                                          Page 57
2006 Adopted Budget
Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                                Change from
                                      2004         2005            2006        2005 Adopted
                                     Actual     Adopted          Budget      Amount       Percent

Water Fund (410)
  Beginning Reserves                9,495,014    3,919,467       2,825,246    (1,094,221)    -27.9%
  Revenues:
  Intergovernmental Revenues           95,698          -         3,232,371     3,232,371         --
  Goods and Services Charges       11,430,496   12,254,703      12,578,711       324,008      2.6%
  Fines                                28,472       33,500          38,500         5,000     14.9%
  Miscellaneous                       354,648      161,065         314,905       153,840     95.5%
  Non Revenues                      4,545,000          -        10,000,000    10,000,000         --
  Other Financing Sources              11,855          -         3,400,000     3,400,000         --
  Subtotal of Revenues             16,466,169   12,449,268      29,564,487    17,115,219    137.5%
Fund Total Sources                 25,961,183   16,368,735      32,389,733    16,020,998     97.9%
  Expenditures:
  Salaries and Benefits             2,238,409    2,056,600       2,172,187       115,587      5.6%
  Supplies                             97,310       59,819         128,957        69,138    115.6%
  Services                          1,369,343    1,602,583       2,565,136       962,553     60.1%
  Intergovernmental Expenditures    2,347,103    2,246,752       2,202,050       (44,702)    -2.0%
  Capital                           3,406,990    2,396,000      15,068,000    12,672,000    528.9%
  Principal and Interest            1,716,281    1,330,791       1,528,159       197,368     14.8%
  Interfund                         3,684,639    4,152,446       4,588,349       435,903     10.5%
  Subtotal of Expenditures         14,860,075   13,844,991      28,252,838    14,407,847    104.1%
  Ending Reserves                  11,346,686    2,523,744       4,136,895     1,613,151     63.9%
Fund Total Uses                    26,206,761   16,368,735      32,389,733    16,020,998     97.9%

Wastewater Fund (420)
  Beginning Reserves               19,620,400    8,476,924      13,139,732     4,662,808     55.0%
  Revenues:
  Intergovernmental Revenues          523,360       80,000          50,000       (30,000)    -37.5%
  Goods and Services Charges       12,764,313   12,678,511      13,805,310     1,126,799       8.9%
  Fines                                33,824       42,500          47,000         4,500      10.6%
  Miscellaneous                       599,223      253,856         430,748       176,892      69.7%
  Non Revenues                     13,032,191      921,566         828,619       (92,947)    -10.1%
  Other Financing Sources               9,398          -               -             -            --
  Subtotal of Revenues             26,962,309   13,976,433      15,161,677     1,185,244       8.5%
Fund Total Sources                 46,582,709   22,453,357      28,301,409     5,848,052      26.0%
  Expenditures:
  Salaries and Benefits             2,131,058    2,493,756       2,652,188       158,432      6.4%
  Supplies                             23,068       22,742          75,431        52,689    231.7%
  Services                          2,270,710    2,230,483       2,140,412       (90,071)    -4.0%
  Intergovernmental Expenditures    2,169,760    2,556,349       2,919,894       363,545     14.2%
  Capital                           4,922,420    1,805,000       5,565,659     3,760,659    208.3%
  Principal and Interest           13,596,384    2,257,928       2,245,893       (12,035)    -0.5%
  Interfund                         2,941,580    3,341,924       3,429,637        87,713      2.6%
  Subtotal of Expenditures         28,054,980   14,708,182      19,029,114     4,320,932     29.4%
  Ending Reserves                  18,806,661    7,745,175       9,272,295     1,527,120     19.7%
Fund Total Uses                    46,861,641   22,453,357      28,301,409     5,848,052     26.0%




Page 58                                                      City Of Bellingham, Washington
                                                                       2006 Adopted Budget
                                                                               Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                                   Change from
                                           2004          2005        2006         2005 Adopted
                                          Actual      Adopted      Budget       Amount       Percent

Storm/Surface Water Utility Fund (430)
  Beginning Reserves                     2,789,595      797,120     677,868        (119,252)      -15.0%
  Revenues:
  Licenses and Permits                      26,755        25,000     270,000       245,000        980.0%
  Intergovernmental Revenues                17,434         6,000      30,000        24,000        400.0%
  Goods and Services Charges             3,699,666     4,137,797   4,298,775       160,978          3.9%
  Fines                                      6,858           -         6,858         6,858             --
  Miscellaneous                             65,137        15,000      20,500         5,500         36.7%
  Other Financing Sources                  313,631        10,000      30,000        20,000        200.0%
  Subtotal of Revenues                   4,129,481     4,193,797   4,656,133       462,336         11.0%
Fund Total Sources                       6,919,076     4,990,917   5,334,001       343,084          6.9%
  Expenditures:
  Salaries and Benefits                    789,960       975,560     984,831          9,271         1.0%
  Supplies                                  27,681        17,104      70,403         53,299       311.6%
  Services                                 484,783       609,421     448,631       (160,790)      -26.4%
  Intergovernmental Expenditures           421,661       498,700     520,762         22,062         4.4%
  Capital                                  940,196       702,000     880,000        178,000        25.4%
  Interfund                              1,562,923     1,737,082   1,928,860        191,778        11.0%
  Subtotal of Expenditures               4,227,204     4,539,867   4,833,487        293,620         6.5%
  Ending Reserves                        2,488,440       451,050     500,514         49,464        11.0%
Fund Total Uses                          6,715,644     4,990,917   5,334,001        343,084         6.9%

Solid Waste Fund (440)
  Beginning Reserves                     1,085,730      895,807    4,051,745      3,155,938       352.3%
  Revenues:
  Taxes                                    618,431       630,000   1,055,700        425,700        67.6%
  Intergovernmental Revenues               464,125       620,000     846,093        226,093        36.5%
  Goods and Services Charges                 6,939       116,173      84,593        (31,580)      -27.2%
  Miscellaneous                             55,183        38,500     132,629         94,129       244.5%
  Non Revenues                           2,060,000     8,000,000         -       (8,000,000)     -100.0%
  Other Financing Sources                   (8,104)          -           -              -              --
  Subtotal of Revenues                   3,196,574     9,404,673   2,119,015     (7,285,658)      -77.5%
Fund Total Sources                       4,282,304    10,300,480   6,170,760     (4,129,720)      -40.1%
  Expenditures:
  Salaries and Benefits                     91,819       133,118     131,093         (2,025)       -1.5%
  Supplies                                  26,596         5,204      10,700          5,496       105.6%
  Services                                 999,329       344,910     348,251          3,341         1.0%
  Intergovernmental Expenditures            39,631       300,000       1,050       (298,950)      -99.7%
  Capital                                   61,146           -     2,970,000      2,970,000            --
  Principal and Interest                    23,492     6,440,000     782,865     (5,657,135)      -87.8%
  Interfund                                297,249       162,043     218,709         56,666        35.0%
  Subtotal of Expenditures               1,539,262     7,385,275   4,462,668     (2,922,607)      -39.6%
  Ending Reserves                        2,738,044     2,915,205   1,708,092     (1,207,113)      -41.4%
Fund Total Uses                          4,277,306    10,300,480   6,170,760     (4,129,720)      -40.1%




City Of Bellingham, Washington                                                                Page 59
2006 Adopted Budget
Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                          Change from
                                    2004        2005          2006       2005 Adopted
                                   Actual    Adopted        Budget     Amount       Percent

Cemetery Fund (456)
  Beginning Reserves               322,198    327,459        326,291        (1,168)     -0.4%
  Revenues:
  Goods and Services Charges       262,923    224,020        293,381       69,361      31.0%
  Miscellaneous                     12,658     13,700         12,658       (1,042)     -7.6%
  Other Financing Sources          211,600    221,480        221,480          -         0.0%
  Subtotal of Revenues             487,181    459,200        527,519       68,319      14.9%
Fund Total Sources                 809,379    786,659        853,810       67,151       8.5%
  Expenditures:
  Salaries and Benefits            239,869    251,329        290,035       38,706      15.4%
  Supplies                          74,310     74,019         82,984        8,965      12.1%
  Services                          22,565     38,737         39,112          375       1.0%
  Intergovernmental Expenditures    10,723     17,241         17,256           15       0.1%
  Interfund                        101,839    112,153        125,836       13,683      12.2%
  Subtotal of Expenditures         449,306    493,479        555,223       61,744      12.5%
  Ending Reserves                  363,865    293,180        298,587        5,407       1.8%
Fund Total Uses                    813,171    786,659        853,810       67,151       8.5%

Golf Course Fund (460)
  Beginning Reserves               104,986    119,730        117,015        (2,715)     -2.3%
  Revenues:
  Goods and Services Charges       755,481    804,735        818,803       14,068       1.7%
  Fines                                 50        -               50           50          --
  Miscellaneous                      5,284      2,500          5,304        2,804     112.2%
  Subtotal of Revenues             760,815    807,235        824,157       16,922       2.1%
Fund Total Sources                 865,801    926,965        941,172       14,207       1.5%
  Expenditures:
  Salaries and Benefits             21,731     17,348            -         (17,348)   -100.0%
  Supplies                          27,606     46,908         49,474         2,566       5.5%
  Services                         514,653    545,636        548,258         2,622       0.5%
  Intergovernmental Expenditures    35,765     40,203         38,210        (1,993)     -5.0%
  Principal and Interest            84,239     81,351         85,649         4,298       5.3%
  Interfund                         40,779     54,928         71,199        16,271      29.6%
  Subtotal of Expenditures         724,773    786,374        792,790         6,416       0.8%
  Ending Reserves                  141,154    140,591        148,382         7,791       5.5%
Fund Total Uses                    865,927    926,965        941,172        14,207       1.5%




Page 60                                                 City Of Bellingham, Washington
                                                                  2006 Adopted Budget
                                                                       Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                           Change from
                                     2004         2005       2006         2005 Adopted
                                    Actual     Adopted     Budget       Amount       Percent

Parking Services Fund (465)
  Beginning Reserves                769,298     526,585     411,899        (114,686)     -21.8%
  Revenues:
  Fines                                  645         -           -             -             --
  Miscellaneous                      803,310     814,497   1,428,045       613,548       75.3%
  Subtotal of Revenues               803,955     814,497   1,428,045       613,548       75.3%
Fund Total Sources                 1,573,253   1,341,082   1,839,944       498,862       37.2%
  Expenditures:
  Salaries and Benefits              350,255     351,088     412,466        61,378        17.5%
  Supplies                            61,707      57,706      85,867        28,161        48.8%
  Services                           193,453     204,947     310,813       105,866        51.7%
  Intergovernmental Expenditures       4,473       1,910      11,521         9,611       503.2%
  Capital                             38,196     200,000     230,000        30,000        15.0%
  Principal and Interest             122,420     128,636     129,733         1,097         0.9%
  Interfund                          148,175     156,572     258,012       101,440        64.8%
  Subtotal of Expenditures           918,679   1,100,859   1,438,412       337,553        30.7%
  Ending Reserves                    657,319     240,223     401,532       161,309        67.1%
Fund Total Uses                    1,575,998   1,341,082   1,839,944       498,862        37.2%

Medic One Fund (470)
  Beginning Reserves               1,013,560    896,618     779,492        (117,126)     -13.1%
  Revenues:
  Taxes                                  -           -       983,550        983,550          --
  Intergovernmental Revenues       1,341,071     987,068   1,336,200        349,132      35.4%
  Goods and Services Charges       2,800,963   2,879,842   3,032,187        152,345       5.3%
  Miscellaneous                       35,754      28,000      27,500           (500)     -1.8%
  Other Financing Sources          1,410,307     986,072     995,933          9,861       1.0%
  Subtotal of Revenues             5,588,095   4,880,982   6,375,370      1,494,388      30.6%
Fund Total Sources                 6,601,655   5,777,600   7,154,862      1,377,262      23.8%
  Expenditures:
  Salaries and Benefits            3,872,872   3,076,136   3,824,617        748,481       24.3%
  Supplies                           299,545     387,711     346,450        (41,261)     -10.6%
  Services                           199,503     237,834     255,698         17,864        7.5%
  Intergovernmental Expenditures      40,834      50,580      58,051          7,471       14.8%
  Capital                            143,474     205,000     144,640        (60,360)     -29.4%
  Interfund                          963,121     966,060   1,306,256        340,196       35.2%
  Subtotal of Expenditures         5,519,349   4,923,321   5,935,712      1,012,391       20.6%
  Ending Reserves                  1,039,430     854,279   1,219,150        364,871       42.7%
Fund Total Uses                    6,558,779   5,777,600   7,154,862      1,377,262       23.8%




City Of Bellingham, Washington                                                       Page 61
2006 Adopted Budget
Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                               Change from
                                     2004          2005           2006        2005 Adopted
                                    Actual      Adopted         Budget      Amount       Percent

Development Services Fund (475)
  Beginning Reserves               1,251,730     613,181         669,733        56,552       9.2%
  Revenues:
  Licenses and Permits             1,398,763    1,334,650       1,926,000      591,350       44.3%
  Goods and Services Charges         564,219      809,302       1,220,162      410,860       50.8%
  Fines                                  275          -               100          100           --
  Miscellaneous                       23,430       88,550          23,663      (64,887)     -73.3%
  Other Financing Sources             13,019          -               -            -             --
  Subtotal of Revenues             1,999,706    2,232,502       3,169,925      937,423       42.0%
Fund Total Sources                 3,251,436    2,845,683       3,839,658      993,975       34.9%
  Expenditures:
  Salaries and Benefits            1,409,559    2,045,222       2,067,247       22,025       1.1%
  Supplies                           128,875       58,554          62,632        4,078       7.0%
  Services                           489,302       93,712         176,746       83,034      88.6%
  Capital                             14,882       50,000          35,000      (15,000)    -30.0%
  Interfund                          409,916      381,224         570,640      189,416      49.7%
  Subtotal of Expenditures         2,452,534    2,628,712       2,912,265      283,553      10.8%
  Ending Reserves                    849,108      216,971         927,393      710,422     327.4%
Fund Total Uses                    3,301,642    2,845,683       3,839,658      993,975      34.9%

Fleet Administration Fund (510)
   Beginning Reserves              5,501,203    5,069,900       4,792,326      (277,574)     -5.5%
   Revenues:
   Goods and Services Charges        166,366      152,148         196,757       44,609      29.3%
   Miscellaneous                   2,379,064    2,226,957       2,355,081      128,124       5.8%
   Other Financing Sources           (45,042)      75,000          79,850        4,850       6.5%
   Subtotal of Revenues            2,500,388    2,454,105       2,631,688      177,583       7.2%
Fund Total Sources                 8,001,591    7,524,005       7,424,014      (99,991)     -1.3%
  Expenditures:
  Salaries and Benefits              542,311      566,595         568,667         2,072       0.4%
  Supplies                             3,310        5,723           3,599        (2,124)    -37.1%
  Services                           148,295      142,090         236,200        94,110      66.2%
  Intergovernmental Expenditures      49,035          -               -             -            --
  Capital                            738,215    1,114,000       1,906,000       792,000      71.1%
  Interfund                          996,915    1,016,512         988,667       (27,845)     -2.7%
  Subtotal of Expenditures         2,478,081    2,844,920       3,703,133       858,213      30.2%
  Ending Reserves                  5,722,023    4,679,085       3,720,881      (958,204)    -20.5%
Fund Total Uses                    8,200,104    7,524,005       7,424,014       (99,991)     -1.3%




Page 62                                                     City Of Bellingham, Washington
                                                                      2006 Adopted Budget
                                                                            Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                                Change from
                                          2004         2005       2006         2005 Adopted
                                         Actual     Adopted     Budget       Amount       Percent

Purchasing/Materials Mngmt Fund (520)
  Beginning Reserves                     744,640     557,117     878,564        321,447        57.7%
  Revenues:
  Goods and Services Charges            3,926,074   3,896,412   4,249,970       353,558         9.1%
  Miscellaneous                            22,601      13,000      18,388         5,388        41.4%
  Other Financing Sources                  20,431         -           -             -              --
  Subtotal of Revenues                  3,969,106   3,909,412   4,268,358       358,946         9.2%
Fund Total Sources                      4,713,746   4,466,529   5,146,922       680,393        15.2%

  Expenditures:
  Salaries and Benefits                   475,821     511,007     543,113        32,106         6.3%
  Supplies                              3,041,727   2,902,016   3,208,210       306,194        10.6%
  Services                                  7,262      25,489      61,140        35,651       139.9%
  Intergovernmental Expenditures            3,707       3,700       3,800           100         2.7%
  Capital                                 202,419         -           -             -              --
  Interfund                               422,824     438,728     403,595       (35,133)       -8.0%
  Subtotal of Expenditures              4,153,760   3,880,940   4,219,858       338,918         8.7%
  Ending Reserves                         560,311     585,589     927,064       341,475        58.3%
Fund Total Uses                         4,714,071   4,466,529   5,146,922       680,393        15.2%

Facilities Administration Fund (530)
  Beginning Reserves                    1,666,693   1,128,838    696,801        (432,037)     -38.3%
  Revenues:
  Goods and Services Charges               17,402         -           -              -             --
  Miscellaneous                         1,543,468   1,765,399   1,859,840         94,441        5.3%
  Other Financing Sources                  45,000         -           -              -             --
  Subtotal of Revenues                  1,605,870   1,765,399   1,859,840         94,441        5.3%
Fund Total Sources                      3,272,563   2,894,237   2,556,641       (337,596)     -11.7%
  Expenditures:
  Salaries and Benefits                   681,002     708,928     737,450         28,522        4.0%
  Supplies                                  2,995       6,883       6,195           (688)     -10.0%
  Services                                512,180     727,337     814,710         87,373       12.0%
  Intergovernmental Expenditures          600,000         -           -              -             --
  Interfund                               289,721     379,602     312,729        (66,873)     -17.6%
  Subtotal of Expenditures              2,085,898   1,822,750   1,871,084         48,334        2.7%
  Ending Reserves                       1,182,915   1,071,487     685,557       (385,930)     -36.0%
Fund Total Uses                         3,268,813   2,894,237   2,556,641       (337,596)     -11.7%




City Of Bellingham, Washington                                                            Page 63
2006 Adopted Budget
Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                                  Change from
                                         2004         2005           2006        2005 Adopted
                                        Actual     Adopted         Budget      Amount       Percent

Telecommunications Fund (540)
  Beginning Reserves                    311,483     334,210         416,483        82,273      24.6%
  Revenues:
  Goods and Services Charges            370,337     382,215         437,486        55,271       14.5%
  Miscellaneous                          32,652      30,175          21,031        (9,144)     -30.3%
  Subtotal of Revenues                  402,989     412,390         458,517        46,127       11.2%
Fund Total Sources                      714,472     746,600         875,000       128,400       17.2%
  Expenditures:
  Supplies                                  151       5,000           4,325          (675)     -13.5%
  Services                              276,094     262,411         365,816       103,405       39.4%
  Intergovernmental Expenditures         13,336      11,005          12,558         1,553       14.1%
  Interfund                              77,650     105,188         147,760        42,572       40.5%
  Subtotal of Expenditures              367,231     383,604         530,459       146,855       38.3%
  Ending Reserves                       347,840     362,996         344,541       (18,455)      -5.1%
Fund Total Uses                         715,071     746,600         875,000       128,400       17.2%

Claims Litigation Fund (550)
  Beginning Reserves                   4,548,083   5,212,477       5,144,927       (67,550)     -1.3%
  Revenues:
  Goods and Services Charges             161,243         -               -             -            --
  Miscellaneous                          621,516     776,726         826,793        50,067       6.4%
  Non Revenues                             8,006       8,106           8,107             1       0.0%
  Other Financing Sources              1,000,000         -               -             -            --
  Subtotal of Revenues                 1,790,765     784,832         834,900        50,068       6.4%
Fund Total Sources                     6,338,848   5,997,309       5,979,827       (17,482)     -0.3%
  Expenditures:
  Supplies                                 5,679       8,330           6,138        (2,192)    -26.3%
  Services                               903,108     624,218         629,821         5,603       0.9%
  Interfund                              184,863     228,587         202,262       (26,325)    -11.5%
  Subtotal of Expenditures             1,093,650     861,135         838,221       (22,914)     -2.7%
  Ending Reserves                      5,221,230   5,136,174       5,141,606         5,432       0.1%
Fund Total Uses                        6,314,880   5,997,309       5,979,827       (17,482)     -0.3%

Unemployment Compensation Fund (561)
  Beginning Reserves                    141,498     151,844         361,512       209,668     138.1%
  Revenues:
  Miscellaneous                         123,357     112,815           5,000       (107,815)    -95.6%
  Other Financing Sources               100,000         -               -              -            --
  Subtotal of Revenues                  223,357     112,815           5,000       (107,815)    -95.6%
Fund Total Sources                      364,855     264,659         366,512        101,853      38.5%
  Expenditures:
  Salaries and Benefits                  65,900     150,000         120,000       (30,000)    -20.0%
  Services                                  550         -               -             -            --
  Interfund                               1,862       2,159           4,666         2,507     116.1%
  Subtotal of Expenditures               68,312     152,159         124,666       (27,493)    -18.1%
  Ending Reserves                       296,241     112,500         241,846       129,346     115.0%
Fund Total Uses                         364,553     264,659         366,512       101,853      38.5%




Page 64                                                        City Of Bellingham, Washington
                                                                         2006 Adopted Budget
                                                                           Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                               Change from
                                         2004         2005       2006         2005 Adopted
                                        Actual     Adopted     Budget       Amount       Percent

Workers Comp Self-Insurance Fund (562)
  Beginning Reserves                     690,142    657,244     694,374         37,130        5.6%
  Revenues:
  Miscellaneous                          603,695     614,956     632,178        17,222        2.8%
  Subtotal of Revenues                   603,695     614,956     632,178        17,222        2.8%
Fund Total Sources                     1,293,837   1,272,200   1,326,552        54,352        4.3%
  Expenditures:
  Salaries and Benefits                  239,124     342,587     303,690        (38,897)     -11.4%
  Supplies                                 5,371      32,500      31,300         (1,200)      -3.7%
  Services                               220,010     225,020     314,311         89,291       39.7%
  Intergovernmental Expenditures          57,020      55,000      70,000         15,000       27.3%
  Interfund                               11,534      15,504      21,975          6,471       41.7%
  Subtotal of Expenditures               533,059     670,611     741,276         70,665       10.5%
  Ending Reserves                        769,823     601,589     585,276        (16,313)      -2.7%
Fund Total Uses                        1,302,882   1,272,200   1,326,552         54,352        4.3%

Health Benefits Fund (565)
  Beginning Reserves                   1,363,376    937,921    1,124,883       186,962       19.9%
  Revenues:
  Goods and Services Charges                 500         -           -             -             --
  Miscellaneous                        7,184,867   7,483,995   8,017,052       533,057        7.1%
  Subtotal of Revenues                 7,185,367   7,483,995   8,017,052       533,057        7.1%
Fund Total Sources                     8,548,743   8,421,916   9,141,935       720,019        8.5%
  Expenditures:
  Salaries and Benefits                  149,541     128,772     150,747         21,975       17.1%
  Supplies                                25,327      22,550      23,247            697        3.1%
  Services                             6,737,833   7,230,450   7,878,750        648,300        9.0%
  Intergovernmental Expenditures         400,300     302,000         320       (301,680)     -99.9%
  Capital                                 11,661         -           -              -             --
  Interfund                              122,557     138,908     151,368         12,460        9.0%
  Subtotal of Expenditures             7,447,219   7,822,680   8,204,432        381,752        4.9%
  Ending Reserves                      1,103,939     599,236     937,503        338,267       56.4%
Fund Total Uses                        8,551,158   8,421,916   9,141,935        720,019        8.5%

Firefighter's Pensions Fund (612)
   Beginning Reserves                  2,623,428   2,642,985   3,094,331       451,346       17.1%
   Revenues:
   Taxes                               1,057,482   1,091,200   1,423,000       331,800       30.4%
   Intergovernmental Revenues             92,997      91,000      91,530           530        0.6%
   Miscellaneous                          74,059      70,272     106,089        35,817       51.0%
   Non Revenues                           66,434      73,117      73,560           443        0.6%
   Subtotal of Revenues                1,290,972   1,325,589   1,694,179       368,590       27.8%
Fund Total Sources                     3,914,400   3,968,574   4,788,510       819,936       20.7%
  Expenditures:
  Salaries and Benefits                1,123,121   1,259,086   1,445,000       185,914        14.8%
  Supplies                                45,548      60,100      70,100        10,000        16.6%
  Services                                11,480      25,560      17,400        (8,160)      -31.9%
  Interfund                                  801         912         537          (375)      -41.1%
  Subtotal of Expenditures             1,180,950   1,345,658   1,533,037       187,379        13.9%
  Ending Reserves                      2,739,411   2,622,916   3,255,473       632,557        24.1%
Fund Total Uses                        3,920,361   3,968,574   4,788,510       819,936        20.7%



City Of Bellingham, Washington                                                           Page 65
2006 Adopted Budget
Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                                  Change from
                                         2004         2005           2006        2005 Adopted
                                        Actual     Adopted         Budget      Amount       Percent

Police Officer's Pensions Fund (613)
  Beginning Reserves                   1,193,803   1,218,257       1,278,823       60,566       5.0%
  Revenues:
  Miscellaneous                          733,833     402,621       1,012,442      609,821     151.5%
  Subtotal of Revenues                   733,833     402,621       1,012,442      609,821     151.5%
Fund Total Sources                     1,927,636   1,620,878       2,291,265      670,387      41.4%
  Expenditures:
  Salaries and Benefits                  584,818     644,000         718,000       74,000       11.5%
  Supplies                                25,416      39,900          45,100        5,200       13.0%
  Services                                14,852      32,260          35,250        2,990        9.3%
  Interfund                                  358         448             322         (126)     -28.1%
  Subtotal of Expenditures               625,444     716,608         798,672       82,064       11.5%
  Ending Reserves                      1,304,623     904,270       1,492,593      588,323       65.1%
Fund Total Uses                        1,930,067   1,620,878       2,291,265      670,387       41.4%

Firefighter's LT Care Fund (614)
   Beginning Reserves                   471,733     470,748         503,151        32,403       6.9%
   Revenues:
   Miscellaneous                         68,543     426,173         204,200       (221,973)    -52.1%
   Subtotal of Revenues                  68,543     426,173         204,200       (221,973)    -52.1%
Fund Total Sources                      540,276     896,921         707,351       (189,570)    -21.1%
  Expenditures:
  Services                                7,996     123,000         180,500         57,500      46.7%
  Subtotal of Expenditures                7,996     123,000         180,500         57,500      46.7%
  Ending Reserves                       533,151     773,921         526,851       (247,070)    -31.9%
Fund Total Uses                         541,147     896,921         707,351       (189,570)    -21.1%

Police Officer's LT Care Fund (615)
  Beginning Reserves                    422,055     419,055         469,646        50,591      12.1%
  Revenues:
  Miscellaneous                          63,807     280,630         196,507        (84,123)    -30.0%
  Subtotal of Revenues                   63,807     280,630         196,507        (84,123)    -30.0%
Fund Total Sources                      485,862     699,685         666,153        (33,532)     -4.8%
  Expenditures:
  Services                               17,028     123,000         130,500          7,500       6.1%
  Subtotal of Expenditures               17,028     123,000         130,500          7,500       6.1%
  Ending Reserves                       469,646     576,685         535,653        (41,032)     -7.1%
Fund Total Uses                         486,674     699,685         666,153        (33,532)     -4.8%




Page 66                                                        City Of Bellingham, Washington
                                                                         2006 Adopted Budget
                                                                             Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                                 Change from
                                           2004         2005       2006         2005 Adopted
                                          Actual     Adopted     Budget       Amount       Percent

Beyond Greenways Endowment Fund (701)
  Beginning Reserves                  1,444,967      1,663,688   1,894,660       230,972       13.9%
  Revenues:
  Taxes                                 267,895        159,106     177,680        18,574       11.7%
  Miscellaneous                          22,692            -        22,692        22,692           --
  Subtotal of Revenues                  290,587        159,106     200,372        41,266       25.9%
Fund Total Sources                    1,735,554      1,822,794   2,095,032       272,238       14.9%
  Ending Reserves                        1,735,554   1,822,794   2,095,032       272,238       14.9%
Fund Total Uses                          1,735,554   1,822,794   2,095,032       272,238       14.9%

Nat Res Protect & Restoration Fund (702)
  Beginning Reserves                     4,003,245   2,023,345   1,721,310       (302,035)     -14.9%
  Revenues:
  Miscellaneous                             98,837     140,000     222,000         82,000       58.6%
  Non Revenues                                 -     2,060,000         -       (2,060,000)    -100.0%
  Subtotal of Revenues                      98,837   2,200,000     222,000     (1,978,000)     -89.9%
Fund Total Sources                       4,102,082   4,223,345   1,943,310     (2,280,035)     -54.0%
  Expenditures:
  Principal and Interest                 2,060,000         -           -              -             --
  Subtotal of Expenditures               2,060,000         -           -              -             --
  Ending Reserves                        2,042,083   4,223,345   1,943,310     (2,280,035)     -54.0%
Fund Total Uses                          4,102,083   4,223,345   1,943,310     (2,280,035)     -54.0%




City Of Bellingham, Washington                                                             Page 67
2006 Adopted Budget
Budget Summary


Revenues and Sources, Expenditures and Uses – All Funds
(continued)
                                                                                  Change from
                                       2004          2005            2006        2005 Adopted
                                      Actual      Adopted          Budget      Amount       Percent

All Funds
   Beginning Reserves               99,520,490    60,234,920      76,099,165    15,864,245     26.3%
   Revenues:
   Taxes                            56,615,403    56,923,249      62,966,240     6,042,991      10.6%
   Licenses and Permits              2,111,571     1,996,950       2,961,093       964,143      48.3%
   Intergovernmental Revenues       13,236,032    13,172,799      16,139,646     2,966,847      22.5%
   Goods and Services Charges       49,721,975    52,554,153      55,545,515     2,991,362       5.7%
   Fines                             1,575,841     1,686,470       1,543,508      (142,962)     -8.5%
   Miscellaneous                    19,057,302    17,918,209      20,130,144     2,211,935      12.3%
   Non Revenues                     24,719,163    11,071,744      10,919,399      (152,345)     -1.4%
   Other Financing Sources          29,240,697    13,442,185      10,319,232    (3,122,953)    -23.2%
   Subtotal of Revenues            196,277,984   168,765,759     180,524,777    11,759,018       7.0%
Fund Total Sources                 295,798,474   229,000,679     256,623,942    27,623,263      12.1%
  Expenditures:
  Salaries and Benefits             55,961,205    60,246,823      63,505,802     3,258,979       5.4%
  Supplies                           6,115,012     6,232,791       6,809,478       576,687       9.3%
  Services                          26,128,023    28,208,699      28,679,185       470,486       1.7%
  Intergovernmental Expenditures    14,123,222    15,888,439      15,517,035      (371,404)     -2.3%
  Capital                           30,470,678    24,574,764      46,135,235    21,560,471      87.7%
  Principal and Interest            28,402,920    13,765,506       8,030,252    (5,735,254)    -41.7%
  Interfund                         20,653,649    22,602,564      24,513,634     1,911,070       8.5%
  Subtotal of Expenditures         181,854,709   171,519,586     193,190,621    21,671,035      12.6%
  Ending Reserves                  114,315,040    57,481,093      63,433,321     5,952,228      10.4%
Fund Total Uses                    296,169,749   229,000,679     256,623,942    27,623,263      12.1%




Page 68                                                        City Of Bellingham, Washington
                                                                         2006 Adopted Budget
                                                            Budget Summary




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City Of Bellingham, Washington                                     Page 69
2006 Adopted Budget
Budget Summary


Expenditures by SubObject - All Funds


                                                                                Change from
                                            2004         2005         2006      2005 Adopted
                                           Actual      Budget       Budget    Amount      Percent
SALARIES & WAGES (10)
 11 SALARIES & WAGES                   41,581,121   43,705,111   45,764,240    2,059,129    4.7%
 12 OVERTIME & HAZARD DUTY              1,371,839    1,500,389    1,629,393      129,004    8.6%
    Total SALARIES & WAGES             42,952,960   45,205,500   47,393,633    2,188,133    4.8%

PERSONNEL BENEFITS (20)
 21 PERSONNEL BENEFITS                 11,167,411   12,913,237   13,766,669      853,432    6.6%
 29 PENSION & DISABILITY PAY            1,840,834    2,128,086    2,345,500      217,414   10.2%
    Total PERSONNEL BENEFITS           13,008,245   15,041,323   16,112,169    1,070,846    7.1%

SUPPLIES (30)
 31 OFFICE & OPER. SUPPLIES             1,690,968    2,115,214    2,092,930     -22,284    -1.1%
 32 FUEL CONSUMED                         343,360      328,999      621,752     292,753    89.0%
 34 ITEMS PURCHASED FOR RESALE          3,089,907    2,946,478    3,255,479     309,001    10.5%
 35 SMALL TOOLS & MINOR EQUIP             990,777      842,100      839,317      -2,783    -0.3%
    Total SUPPLIES                      6,115,012    6,232,791    6,809,478     576,687     9.3%

OTHER SERVICES & CHARGES (40)
41 PROFESSIONAL SERVICES               14,588,967   15,842,225   17,870,996    2,028,771    12.8%
42 COMMUNICATION                          703,787      863,559      866,822        3,263     0.4%
43 TRAVEL                                 208,274      300,507      297,160       -3,347    -1.1%
44 ADVERTISING                            303,513      171,078      353,665      182,587   106.7%
45 OPERATING RENTALS & LEASES             463,372      449,164      402,858      -46,306   -10.3%
46 INSURANCE                              377,315      431,931      448,635       16,704     3.9%
47 UTILITY SERVICE                      3,331,756    3,704,093    3,630,853      -73,240    -2.0%
48 REPAIRS & MAINTENANCE                4,149,313    4,365,094    4,508,751      143,657     3.3%
49 MISCELLANEOUS                        2,001,726    2,081,048      299,445   -1,781,603   -85.6%
   Total OTHER SERVICES & CHARGES      26,128,023   28,208,699   28,679,185      470,486     1.7%

INTERGOVERNMENTAL SERVICES (50)
 51 INTERGOVERNMENTAL PROF SERVS        2,859,723    3,585,021    4,475,615      890,594   24.8%
 52 INTERGOVERNMENTAL PAYMENTS                  0            0            0            0
 53 EXTERNAL TAXES & OPER ASSESS          829,915      887,154      912,976       25,822     2.9%
 54 INTERFUND TAXES & OPER ASSESS       3,066,935    3,204,988    3,418,943      213,955     6.7%
 55 INTERFUND SUBSIDIES                  7366649      8211276      6709501     -1501775    -18.3%
    Total INTERGOVERNMENTAL SERVICES   14,123,222   15,888,439   15,517,035     -371,404    -2.3%




Page 70                                                      City Of Bellingham, Washington
                                                                       2006 Adopted Budget
                                                                                 Budget Summary


Expenditures by SubObject - All Funds (continued)


CAPITAL OUTLAY (60)
61 LAND                                  5,492,552     1,865,000    11,625,000    9,760,000    523.3%
62 BUILDINGS AND STRUCTURES              7,971,337       180,000     3,336,250    3,156,250   1753.5%
63 OTHER IMPROVEMENTS                    6,043,716     7,204,337     9,908,500    2,704,163     37.5%
64 MACHINERY AND EQUIPMENT               2,172,328     2,587,650     3,489,995      902,345     34.9%
65 CONSTRUCTION OF FIXED ASSETS          8,790,745    12,737,777    17,775,490    5,037,713     39.5%
   Total CAPITAL OUTLAY                 30,470,678    24,574,764    46,135,235   21,560,471     87.7%

DEBT SERVICE PRINCIPAL (70)
71 G. O. BONDS                           2,275,000     1,830,000     2,075,000      245,000    13.4%
72 REVENUE BONDS                         8,468,243     1,725,000     1,860,000      135,000     7.8%
73 SPECIAL ASSESSMENT BONDS                765,000             0             0            0
77 OTHER NOTES                             403,003       424,372       424,782          410      0.1%
78 INTERGOVERNMENTAL LOANS                 579,908        86,009        83,871       -2,138     -2.5%
79 PRINCIPAL                            14,013,625     7,052,168       902,178   -6,149,990    -87.2%
   Total DEBT SERVICE PRINCIPAL         26,504,779    11,117,549     5,345,831   -5,771,718    -51.9%

DEBT SERVICE INTEREST (80)
82 INTEREST ON INTERFUND DEBT              225,302        95,905       139,494       43,589     45.5%
83 INTEREST/LONG-TERM EXT. DEBT          1,687,380     2,388,627     2,342,152      -46,475     -1.9%
84 DEBT ISSUE COSTS                        -112038       160,000       200,000       40,000     25.0%
85 DEBT REGISTRATION COSTS                   2,794         3,425         2,775         -650    -19.0%
89 OTHER DEBT SERVICE COSTS                 94,703             0             0            0
   Total DEBT SERVICE INTEREST           1,898,141     2,647,957     2,684,421       36,464     1.4%

INTERFUND PAYT FOR SERVICE (90)
 91 INTERFUND PROFESSIONAL SERVICE      12,206,161    14,157,717    15,348,436    1,190,719      8.4%
 92 INTERFUND COMMUNICATIONS               409,393       420,509       470,889       50,380     12.0%
 93 INTERFUND SUPPLIES                   3,613,253     3,495,720     3,881,452      385,732     11.0%
 94 INTERFUND CAPITAL OUTLAYS              321,154       100,200       150,000       49,800     49.7%
 95 INTERFUND OPERATING RENTALS          3,505,630     3,642,014     3,835,756      193,742      5.3%
 96 INTERFUND INSURANCE SERVICES           471,537       653,568       676,915       23,347      3.6%
 98 INTERFUND REPAIRS & MAINT              126,521       131,314       148,961       17,647     13.4%
 99 OTHER INTERFUND SERVICES                     0         1,522         1,225         -297    -19.5%
    Total INTERFUND PAYT FOR SERVICE    20,653,649    22,602,564    24,513,634    1,911,070      8.5%



TOTAL EXPENDITURES                     181,854,709   171,519,586   193,190,621   21,671,035    12.6%




City Of Bellingham, Washington                                                                 Page 71
2006 Adopted Budget
Budget Summary


General Fund Revenue Trends and Projections


 70,000,000


 60,000,000


 50,000,000


 40,000,000


 30,000,000


 20,000,000


 10,000,000


          0
              1999   2000    2001   2002   2003   2004     2005   2006    2007    2008   2009   2010   2011
                            Property Tax                           Sales Tax
                            B&O Tax                                Total Utility Taxes
                            Charges for Goods & Services           Other Revenues



Revenues that contribute to the general fund are tracked separately for trend analysis and
projections. The above graph shows a composite of the revenue history and projections for
the General Fund.

More detailed information about revenue sources in the budget year for the General Fund,
other Major Funds, and other selected funds is on the following pages.




Page 72                                                            City Of Bellingham, Washington
                                                                             2006 Adopted Budget
                                                                              Budget Summary


                MAJOR FUNDS – REVENUES AND SOURCES
                         REPORT AND NOTES
                                                                                                   Change
                                    N
                                                2005 Budget               2006 Budget            from 2005
  (001) GENERAL FUND REVENUES       O
                                                                                                  Adopted
  AND SOURCES                       T
                                    E                     Percent                   Percent        Percent
                                              Amount      of Total      Amount      of Total     Incr (Decr)

Estimated Beginning Reserve         1    $    6,292,229     10.8 % $    9,974,886     15.3 %         58.5 %

Property Taxes                      2        10,736,350     18.4       10,940,000     16.8            1.9
Local Sales Tax                     3         8,065,000     13.8        8,775,000     13.5            8.8
Brokered Natural Gas                            500,000      0.9          510,000      0.8            2.0
Criminal Justice Sales Tax                      997,800      1.7        1,050,000      1.6            5.2
Total Public Safety Sales Tax                         0      0.0          139,000      0.2              --
Business Tax                        4         9,300,000     16.0       10,275,000     15.8           10.5
Admissions Tax                                  308,000      0.5          331,000      0.5            7.5

Utilities
  Electricity                        5        2,300,000      3.9        2,365,000      3.6            2.8
  Natural Gas                        6        1,350,000      2.3        1,480,000      2.3            9.6
  Cable Television                   7          800,000      1.4          900,000      1.4           12.5
  Telephone                          8        2,340,000      4.0        2,430,000      3.7            3.8
  Water                              9        1,339,900      2.3        1,400,000      2.2            4.5
  Wastewater                        10        1,392,600      2.4        1,527,000      2.3            9.7
  Stormwater                        11          383,600      0.7          430,000      0.7           12.1
  Golf Course                                    31,388      0.1           31,000      0.0           -1.2
Other Miscellaneous Revenue                   9,937,488     17.0       10,563,000     16.2            6.3

Leasehold Excise Tax                           287,000        0.5        287,000        0.4           0.0
Gambling Taxes                      12         300,000        0.5        280,000        0.4          -6.7
Penalties on Taxes                              51,000        0.1         52,000        0.1           2.0

  Total Taxes                                40,482,638     69.4       43,202,000     66.4            6.7

Business License Permits            13         548,600        0.9        678,255        1.0          23.6
Non-Business Licenses                           39,700        0.1         35,338        0.1         -11.0

  Total Licenses & Permits                     588,300        1.0        713,593        1.1          21.3

Federal Grants - Direct                        754,681        1.3        978,288        1.5          29.6
Federal Grants - Indirect                      148,862        0.3         60,539        0.1         -59.3
State Grants                                    39,845        0.1              0        0.0        -100.0
Liquor Excise Tax                              255,000        0.4        284,200        0.4          11.5
Liquor Board Profits                14         430,000        0.7        535,900        0.8          24.6
Other Intergovernmental                        286,246        0.5        270,412        0.4          -5.5

  Total Intergovernmental Revenue             1,914,634       3.3       2,129,339       3.3          11.2




City Of Bellingham, Washington                                                                 Page 73
2006 Adopted Budget
Budget Summary



                                                                                                  Change
                                                 2005 Budget               2006 Budget          from 2005
  (001) GENERAL FUND REVENUES
                                                                                                 Adopted
  AND SOURCES
                                                           Percent                   Percent      Percent
                                               Amount      of Total      Amount      of Total   Incr (Decr)

General Government Services                       82,233       0.1          58,986       0.1       -28.3
Security of Persons                  15        1,383,926       2.4         626,890       1.0       -54.7
Utilities & Environment                           17,000       0.0          30,495       0.0        79.4
Economic Environment                              79,500       0.1          67,260       0.1       -15.4
Culture & Recreation                           1,005,789       1.7       1,001,113       1.5        -0.5
Other Charges for Services           16        3,654,862       6.3       4,465,528       6.9        22.2

  Total Charges for Other Services             6,223,310     10.7        6,250,272       9.6         0.4

Traffic Infraction Penalties                    550,800        0.9        550,000        0.8        -0.1
Non-Traffic Infraction Penalty                    8,670        0.0         10,000        0.0        15.3
Parking Infraction Penalties                    475,000        0.8        450,000        0.7        -5.3
Criminal Traffic Penalty             17         189,000        0.3        100,000        0.2       -47.1
Other Non-Traffic Penalties                     200,000        0.3        220,000        0.3        10.0
Other Fines & Forfeits               18         187,000        0.3        121,000        0.2       -35.3

  Total Fines & Forfeits                       1,610,470       2.8       1,451,000       2.2        -9.9

Interest Earnings                    19         344,552        0.6        391,076        0.6        13.5
Rents                                20         336,180        0.6        436,407        0.7        29.8
Contributions                                    38,404        0.1         57,569        0.1        49.9
Other                                            86,575        0.1         47,960        0.1       -44.6

  Total Miscellaneous                           805,711        1.4        933,012        1.4        15.8

Principal Repayments                              8,955        0.0          9,113        0.0         1.8

  Total Non Revenues                              8,955        0.0           9,113       0.0         1.8

Sales Of Capital Assets                               0        0.0              0        0.0           --
Operating Transfers-In                          373,425        0.6        428,625        0.7        14.8

  Total Other Financing                         373,425        0.6        428,625        0.7        14.8

TOTAL RESOURCES                           $   58,299,672    100.0 % $   65,091,840    100.0 %       11.7 %



(001) General Fund Revenues and Sources Notes

1. The actual Beginning Undesignated Reserves for 2005 were approximately $2,800,000
   higher than budgeted. The primary differences were approximately $1,700,000 in
   departmental turnback and $820,000 in unanticipated revenues. The estimated
   beginning reserves for 2006 includes an estimated departmental turnback of
   $1,600,000, approximately 3% of the 2005 expenditure budget.



Page 74                                                          City Of Bellingham, Washington
                                                                           2006 Adopted Budget
                                                                           Budget Summary


(001) General Fund Revenues and Sources Notes (continued)

2. The Property Tax projection includes the 1% increase allowed by law in addition to 2%
   for new construction; however, it is offset by a 24% increase in assessed valuation that
   re-directs property tax funding to the Fire Pension Fund. The rate for the Fire Pension
   Fund is set at 22.5 cents per $1,000 in assessed valuation and because the City is
   limited to a 1% increase in total dollars plus new construction, any appreciation in
   assessed valuation reduces the amount that can be collected by the General Fund.
3. The 2005 Sales Tax budget is lower than current projections indicate. The 2006 budget
   is based upon a 5.23% increase over the current estimate. The current estimate was
   developed by projecting October year-to-date collections using the average percent of
   total collections for the last four years. The average increase over the past five years is
   5.19%, which is slightly lower than the actual percent used due to rounding. Although
   the construction industry is showing evidence of a decline, retail and motor vehicle sales
   are experiencing significant growth.
4. The 2005 Business and Occupation Tax budget is lower than current projections
   indicate. The 2006 budget is based upon a 4.16% increase over the current estimate,
   excluding one-time revenues collected in 2005. The current estimate was developed by
   projecting October year-to-date collections using the average percent of total collections
   for the last four years. The average increase over the past five years is 4.26%,
   excluding one-time revenues received in 2003. The percentage increase used for the
   2006 budget is slightly lower than the historical average due to rounding. The medical
   industry is experiencing significant growth.
5. Electric Utility Tax has fluctuated considerably since 1999, for an average decrease of
   1.72%. The 2006 budget is based on maintaining the revenues at the level projected for
   2005. The current estimate was developed by projecting October year-to-date
   collections using the average percent of total collections for the last four years. This tax
   could be higher if two rate increases requested by the electric company for 2005 are
   approved.
6. The 2006 Natural Gas Utility tax is based on an 8.22% increase over the current
   estimate, which is very close to budget. The current estimate was developed by
   projecting October year-to-date collections using the average percent of total collections
   for the last four years. The average increase over the past five years is 8.27%, which is
   slightly higher than the actual percentage used due to rounding.
7. Cable Utility Tax has experienced significant fluctuations since 1999. The 2006 budget
   is based on an 8.03% increase over the current estimate. The current estimate was
   developed by projecting October year-to-date collections using the average percent of
   total collections for the last four years. The average increase over the past five years is
   8.42%. The variance between the percent increase used and the historical average is
   due to rounding. This tax could be higher pending the outcome of a cable modem
   revenue audit.




City Of Bellingham, Washington                                                        Page 75
2006 Adopted Budget
Budget Summary


(001) General Fund Revenues and Sources Notes (continued)

8. The Telephone Utility Tax was relatively flat or on the decline from 2000 to 2003;
   however, 2004 actual revenue reflected an industry rebound. The 2006 projection is
   based on a 3.50% increase over the current estimate. The current estimate for 2005
   reflects more modest growth than 2004. The current estimate was developed by
   projecting October year-to-date collections using the average percent of total collections
   for the last four years. The average increase over the past five years is 3.56%, which is
   slightly higher than the actual percent used due to rounding.
9. The Water Utility Tax is a percentage of water service fees and demand charges. The
   increase reflects an increase in the water rates that was implemented mid-year 2005, in
   addition to population growth.
10. The Wastewater Utility Tax is a percentage of wastewater service fees and demand
    charges. Wastewater revenues were under-budgeted in 2005. This increase reflects a
    budget correction and includes a population growth factor.
11. The Stormwater Utility Tax is a percentage of stormwater service fees. The increase is
    the result of an 8.7% increase in the service fee effective July 1, 2006, and the
    cumulative effect of the 9.6% increase that was implemented July 1, 2005.
12. The reduction in Gambling Taxes reflects current year activity.
13. Business License Permits includes Cable Television Franchise Fees, an area that is
    showing rapid growth in addition to a thirteen percent rate increase that was
    implemented in August, 2005. The 2006 projection is based on a 9.90% increase over
    the current estimate. The current estimate was developed by projecting October year-
    to-date collections using the average percent of total collections over the last four years.
    The average increase over the past five years is 9.81%, which is slightly lower than the
    actual percentage used due to rounding. This tax will be higher due to a franchise fee
    rate increase implemented in late 2005.
14. Liquor Board Profits are projected to increase as the result of a robust economy, an
    increasing population, and cost controls implemented by the State. The tax per liter also
    increased on July 1, 2005.
15. The 2006 budget for Security of Persons reflects the correction of an error in the 2005
    adopted budget for ambulance fees.
16. Other Charges for Services reflects an increase in the interfund charges to more
    accurately reflect the full cost of service. The allocation method was reviewed and
    modified to re-allocate charges that are distributed to internal service departments. In
    addition, the Parks Department will receive reimbursement from capital project funds for
    staff dedicated to those capital projects. The Fire Department will also receive
    reimbursement from the Development Services Fund for the Fire Marshal and Fire
    Inspectors, which was not included in the 2005 adopted budget.
17. The reduction in Criminal Traffic Penalties is due to the temporary assignment of two
    Traffic Enforcement Officers to Patrol to maintain adequate coverage. This revenue will
    gradually increase as new officers are assigned to this area.



Page 76                                                     City Of Bellingham, Washington
                                                                      2006 Adopted Budget
                                                                                        Budget Summary


(001) General Fund Revenues and Sources Notes (continued)

18. The decrease in Other Fines and Forfeits reflects 2005 actual activity. The Library
    increased fines in 2004 and have had a lower delinquency experience, rather than
    increased fine collections.
19. The increase in Interest Earnings is attributable to the ending reserve balance being
    higher than the 2005 budget.
20. The increase in Rents is due to the signing of long-term leases for City-owned retail
    property.


                                                                                                      Change
                                     N
                                                2005 Budget                   2006 Budget           from 2005
  (111) STREET FUND REVENUES         O
                                                                                                     Adopted
  AND SOURCES                        T
                                                          Percent                        Percent      Percent
                                     E
                                              Amount      of Total          Amount       of Total   Incr (Decr)

Estimated Beginning Reserve          1   $    3,750,329     16.5 % $        4,807,498      20.1 %       28.2 %

Diverted County Road Taxes                       12,000      0.1                    0       0.0       (100.0)
Local Retail Sales Tax               2        7,950,000     34.9            8,750,000      36.5         10.1

  Total Taxes                                 7,962,000     35.0            8,750,000      36.5          9.9

  Total Licenses & Permits                      49,000        0.2             51,500        0.2          5.1

Federal Grants - Indirect            3        2,163,788       9.5           1,992,000       8.3         (7.9)
State Grants                                          0       0.0             193,921       0.8            --
Road & Street Fuel Tax               4        1,020,000       4.5           1,175,000       4.9         15.2
Other Intergovernmental              3        1,225,000       5.4             354,000       1.5        (71.1)

  Total Intergovernmental Revenue             4,408,788     19.4            3,714,921      15.5        (15.7)

Other Fees and Charges               5          202,000      0.9               93,241       0.4        (53.8)
GMA Impact Fees                      6          600,000      2.6              900,000       3.8         50.0
Interfund Charges                             5,324,467     23.4            5,362,529      22.4          0.7

  Total Charges for Other Services            6,126,467     26.9            6,355,770      26.5          3.7

Interest Earnings                    7          77,000        0.3            272,556        1.1       254.0
Other                                8         385,600        1.7             17,000        0.1       (95.6)

  Total Miscellaneous                          462,600        2.0            289,556        1.2        (37.4)

TOTAL RESOURCES                          $   22,759,184    100.0     % $   23,969,245     100.0 %        5.3 %




City Of Bellingham, Washington                                                                      Page 77
2006 Adopted Budget
Budget Summary


(111) Street Fund Revenues and Sources Notes

1. The actual beginning undesignated reserves for 2005 were approximately $1,200,000
   higher than budgeted. The primary differences were approximately $760,000 in
   departmental turnback and $440,000 in unanticipated revenues.
2. The 2005 Sales Tax budget is lower than current projections indicate. The 2006 budget
   is based upon a 5.23% increase over the current estimate. The current estimate was
   developed by projecting October year-to-date collections using the average percent of
   total collections for the last four years. The average increase over the past five years is
   5.19%, which is slightly lower than the actual percent used due to rounding. Although
   the construction industry is showing evidence of a decline, retail and motor vehicle sales
   are experiencing significant growth.
3. Grants and Other Governmental are dependent upon project eligibility and available
   funding and therefore vary each year.
4. The increase in Road and Street Fuel Tax reflects the cumulative effect of a tax
   increase passed by the State Legislature for implementation July 1, 2005 and an
   additional tax increase that will be implemented on July 1, 2006.
5. Other Fees and Charges were reduced to reflect current year actual revenue. The 2005
   budget was overestimated.
6. The increase in GMA Impact Fees reflects current experience in commercial
   development.
7. The 2005 budget for Interest Earnings was underestimated. The 2006 budget is based
   on 2004 actual results.
8. The decrease in Other Revenues reflects 2005 actual results.




Page 78                                                    City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                                                                Budget Summary


                                                                                                     Change
                                     N
  (190) HOUSING/COMMUNITY                     2005 Adopted                  2006 Budget            from 2005
                                     O
  DEVELOPMENT FUND REVENUES                                                                         Adopted
                                     T
  AND SOURCES                                            Percent                      Percent        Percent
                                     E
                                             Amount      of Total         Amount      of Total     Incr (Decr)

  Total Intergovernmental Revenue    1   $   1,016,000     68.3     % $    950,000      63.8 %       (6.50) %

Economic Environment                          207,892      14.0            209,778      14.1          0.90
Interfund Services                   2        156,787      10.5            138,922       9.3        (11.40)

  Total Charges for Other Services            364,679      24.5            348,700      23.4         (4.40)

Interest Earnings                              37,061        2.5            35,176        2.4        (5.10)
Other                                           2,100        0.1             1,800        0.1       (14.30)

  Total Miscellaneous                          39,161        2.6            36,976        2.5        (5.60)

  Total Other Financing              3         67,370        4.5           153,796      10.3        128.30

TOTAL RESOURCES                          $   1,487,210    100.0 % $       1,489,472    100.0 %        0.20 %



(190) Housing and Community Development Fund Revenues and
Sources Notes

1. The decrease in Intergovernmental Revenue is due to an expected reduction in the
   award for Community Development Block Grant, which is a nationwide trend.
2. The decrease in Interfund Services reflects the reallocation of staff resources to other
   Community Development and Planning programs.
3. The increase in Other Financing is based on the modification to the internal cost
   allocation plan effective in 2006. This revenue is a reimbursement from the General
   Fund for the internal cost allocation charged to this fund.




City Of Bellingham, Washington                                                                   Page 79
2006 Adopted Budget
Budget Summary


                                                                                                       Change
                                     N
                                               2005 Adopted                    2006 Budget           from 2005
  (410) WATER FUND REVENUES          O
                                                                                                      Adopted
  AND SOURCES                        T
                                                           Percent                       Percent       Percent
                                     E
                                              Amount       of Total          Amount      of Total    Incr (Decr)

Estimated Beginning Reserve          1   $    3,919,467      23.9     % $    2,825,246       8.7 %    (27.90) %

  Total Intergovernmental Revenue    2                 0      0.0            3,232,371     10.0             --

Watershed Revenue                             2,040,000      12.5            2,064,376      6.4         1.20
Unmetered Water                               3,473,000      21.2            3,582,219     11.1         3.10
Metered Water                                 3,850,412      23.5            4,024,968     12.4         4.50
GP Untreated Water Supply            3          250,000       1.5              376,974      1.2        50.80
Demand Charges - Water                        1,200,000       7.3            1,236,000      3.8         3.00
Other Water Revenues                            333,000       2.0              353,600      1.1         6.20
Installation Charges                            435,000       2.7              440,000      1.4         1.10
Inter/Intrafund Charges              4          673,291       4.1              500,574      1.5       (25.70)

  Total Charges for Other Services           12,254,703      74.9           12,578,711     38.8         2.60

  Total Fines & Forfeits                        33,500        0.2              38,500        0.1       14.90

Interest Earnings                    5         104,385        0.6             252,185        0.8     141.60
Rents                                           54,680        0.3              56,320        0.2       3.00
Other Misc. Revenue                              2,000        0.0               6,400        0.0     220.00

  Total Miscellaneous                          161,065        1.0             314,905        1.0       95.50

Revenue Bond Proceeds                6                 0      0.0           10,000,000     30.9             --

  Total Non-Revenues                                   0      0.0           10,000,000     30.9             --

  Total Other Financing              7                 0                     3,400,000     10.5             --

TOTAL RESOURCES                          $   16,368,735     100.0     % $   32,389,733    100.0 %      97.90 %



(410) Water Fund Revenues and Sources Notes

1. The decrease in Estimated Beginning Reserve reflects the budgeted use of $1,400,000
   of reserves as a resource for the 2005 budget year. A rate increase was implemented
   during 2005 that partially offsets this decrease.
2. Intergovernmental Revenue primarily consists of grants for the Nooksack Diversion
   Passage repair.
3. The increase in GP Untreated Water Supply is due to a rate increase that was
   implemented in 2005.
4. The reduction in Inter/Intrafund Charges is due to a staff reorganization that reduced
   reimbursable activities in the Water Fund.




Page 80                                                               City Of Bellingham, Washington
                                                                                2006 Adopted Budget
                                                                                  Budget Summary


(410) Water Fund Revenues and Sources Notes (continued)

5. The 2005 budget for Interest Earnings was underestimated. The basis for the 2006
   estimate is 3.25% of the average of the beginning and ending reserve balances.
6. The 2006 budget reflects the anticipated issuance of revenue bonds for Watershed land
   acquisition ($5,000,000) and the construction of Yew Street Reservoir ($5,000,000).
7. Other Financing is an anticipated State Public Works Trust Fund Loan for the Nooksack
   Diversion Passage repair.


                                                                                                       Change
                                     N
                                               2005 Adopted                   2006 Budget            from 2005
  (420) WASTEWATER FUND              O
                                                                                                      Adopted
  REVENUES AND SOURCES               T
                                                          Percent                       Percent        Percent
                                     E
                                              Amount      of Total          Amount      of Total     Incr (Decr)

Estimated Beginning Reserve          1   $    8,476,924     37.8     % $   13,139,732     46.4 %        55.0 %

  Total Intergovernmental Revenue               80,000        0.4             50,000        0.2        (37.5)

Unmetered Wastewater                 2        5,100,000     22.7            5,465,364     19.3           7.2
Metered Wastewater                   3        5,225,000     23.3            5,591,446     19.8           7.0
Septic Tank Dumping                  4          350,000      1.6              375,000      1.3           7.1
Demand Charges - Wastewater          5          780,000      3.5            1,100,000      3.9          41.0
Other Wastewater Revenues            6          600,000      2.7              651,000      2.3           8.5
Inter/Intrafund Charges                         623,511      2.8              622,500      2.2          (0.2)

  Total Charges for Other Services           12,678,511     56.5           13,805,310     48.8           8.9

  Total Fines & Forfeits                        42,500        0.2             47,000        0.2         10.6

Interest Earnings                    7         241,156        1.1            380,248        1.3         57.7
Rents                                8          11,200        0.0             50,000        0.2        346.4
Other                                            1,500        0.0                500        0.0        (66.7)

  Total Miscellaneous                          253,856        1.1            430,748        1.5         69.7

Principal Repayments                 9         921,566        4.1            828,619        2.9        (10.1)

  Total Non Revenues                           921,566        4.1            828,619        2.9        (10.1)

TOTAL RESOURCES                          $   22,453,357    100.0     % $   28,301,409    100.0 %        26.0 %



(420) Wastewater Fund Revenues and Sources Notes

1. The actual beginning undesignated reserves for 2005 were approximately $4,000,000
   higher than budgeted. The primary difference was the repayment of $5,000,000 in
   interfund loans, which was offset by the budgeted use of $730,000 as a resource for the
   2005 budget year.


City Of Bellingham, Washington                                                                     Page 81
2006 Adopted Budget
Budget Summary


(420) Wastewater Fund Revenues and Sources Notes (continued)

2. The 2005 Unmetered Wastewater Revenue budget is lower than current projections
   indicate. The 2006 budget is based on 2005 actual revenue in addition to 3% for
   growth.
3. The 2005 Metered Wastewater Revenue budget is lower than current projections
   indicate. The 2006 budget is based on 2005 actual revenue in addition to 3% for
   growth.
4. The 2006 projection for Septic Tank Dumping is based on 2005 year-to-date actual
   revenue.
5. The increase in Demand Charges – Wastewater is due to a rate increase that will be
   implemented on January 1, 2006. The rate increase varies based on the size of the
   water meter services. There will be a delay in sales due to advance sales that will occur
   at the end of 2005.
6. The growth in the Other Wastewater Revenues budget is due to additional
   reimbursement for pump station maintenance from a local water district.
7. Interest Earnings were underestimated for 2005. The 2006 budget is based on 2004
   actual results.
8. The 2005 budget was underestimated. The 2006 budget is based on actual contracts
   for cellular phone towers.
9. The reduction in Principal Repayments reflects the final payment for one interfund loan
   during 2005.




Page 82                                                  City Of Bellingham, Washington
                                                                   2006 Adopted Budget
                                                                                 Budget Summary


                                                                                                      Change
                                     N
                                              2005 Adopted                   2006 Budget            from 2005
  (470) MEDIC ONE FUND REVENUES      O
                                                                                                     Adopted
  AND SOURCES                        T
                                                          Percent                      Percent        Percent
                                     E
                                             Amount       of Total         Amount      of Total     Incr (Decr)

Estimated Beginning Reserve          1   $    896,618       15.5     % $    779,492      10.9 %       (13.1) %

  Total Taxes                        2                0      0.0            983,550      13.7               --

  Total Intergovernmental Revenue    3        987,068       17.1           1,336,200     18.7          35.4

  Total Charges for Other Services           2,879,842      49.8           3,032,187     42.4           5.3

Investment Interest                            25,000        0.4             25,000        0.3          0.0
Gifts, Pledges, Grants-Pvt Sources              2,000        0.0              1,000        0.0        (50.0)
Write-Offs Collected                            1,000        0.0              1,500        0.0         50.0

  Total Miscellaneous                          28,000        0.5             27,500        0.4         (1.8)

  Total Other Financing                       986,072       17.1            995,933      13.9           1.0

TOTAL RESOURCES                          $   5,777,600     100.0     % $   7,154,862    100.0 %        23.8 %



(470) Medic One Fund Revenues and Sources Notes

1. The reduction in the Estimated Beginning Reserve is due to the planned use of reserves
   to maintain uninterrupted service of a fourth medic unit in 2005.
2. Total Taxes reflects the passage of a tenth of a percent Criminal Justice Sales Tax to
   support Emergency Medical Services.
3. Intergovernmental Revenues are the County’s contribution to maintaining the medic
   program. The increase reflects the County’s commitment to maintaining a fourth medic
   unit in 2006. Although the 2005 adopted budget did not include funding for this unit,
   budget amendments were adopted mid-year to accomplish this.




City Of Bellingham, Washington                                                                    Page 83
2006 Adopted Budget
Budget Summary


     OTHER SELECTED FUNDS – REVENUES AND SOURCES
                  REPORT AND NOTES
                                                                                                   Change
                                    N
  (141) FIRST QUARTER REAL                   2005 Adopted                   2006 Budget          from 2005
                                    O
  ESTATE EXCISE TAX FUND                                                                          Adopted
                                    T
  REVENUES AND SOURCES                                   Percent                      Percent      Percent
                                    E
                                            Amount       of Total         Amount      of Total   Incr (Decr)

Estimated Beginning Reserve         1   $    350,188       18.0     % $   2,707,866     58.0 %     673.3 %

Real Estate Excise Taxes            2       1,586,000      81.7           1,850,000     95.3        16.6

  Total Taxes                               1,586,000      81.7           1,850,000     39.7        16.6

Investment Interest                 3           5,000       0.3             76,000        1.6    1420.0
Other Interest Earnings                             0       0.0              1,000        0.0         --

  Total Miscellaneous                           5,000       0.3             77,000        1.7    1440.0

  Total Other Financing             4                0      0.0             30,000        0.6           --

TOTAL RESOURCES                         $   1,941,188     100.0     % $   4,664,866    100.0 %     140.3 %



(141) First Quarter Real Estate Excise Tax Fund Revenues and
Sources Notes

1. The actual beginning undesignated reserves for 2005 were approximately $860,000
   higher than budgeted. The primary differences were approximately $740,000 in
   unanticipated revenues and $120,000 in departmental turnback for completed projects.
   In addition, a 2005 mid-year budget amendment was adopted transferring $1,050,000 in
   Parks projects to the 2nd ¼% Real Estate Excise Tax Fund to accommodate additional
   projects in 2006. The 2006 estimated undesignated beginning reserve also includes
   $350,000 in tax revenues projected to exceed the 2005 budget.
2. The growth in Real Estate Excise Taxes was quite stable at 5 to 6% from 2000 through
   2002 before experiencing a 43% increase in 2003. The 2004 and 2005 increases were
   21.5% and 10.2% respectively. The 2006 budget was conservatively developed based
   on a 3% decrease from the current estimate. The current estimate was developed by
   dividing July year-to-date collections by the July average percent to total for the last four
   years.
3. The growth in Investment Interest reflects higher reserve balances.
4. Other Financing Sources is a one-time reimbursement for a project with multiple funding
   sources.




Page 84                                                        City Of Bellingham, Washington
                                                                         2006 Adopted Budget
                                                                                Budget Summary


                                                                                                     Change
                                    N
  (142) SECOND QUARTER REAL                  2005 Adopted                   2006 Budget            from 2005
                                    O
  ESTATE EXCISE TAX FUND                                                                            Adopted
                                    T
  REVENUES AND SOURCES                                   Percent                      Percent        Percent
                                    E
                                            Amount       of Total         Amount      of Total     Incr (Decr)

Estimated Beginning Reserve         1   $   2,084,420      56.3     % $   2,087,589     43.2 %         0.2 %

Real Estate Excise Taxes            2       1,586,000      42.8           1,850,000     38.3          16.6

  Total Taxes                               1,586,000      42.8           1,850,000     38.3          16.6

  Total Intergovernmental                            0      0.0            400,000        8.3              --

Investment Interest                 3         31,000        0.8             97,000        2.0        212.9
Other Interest Earnings                            0        0.0              1,000        0.0            --

  Total Miscellaneous                         31,000        0.8             98,000        2.0        216.1

  Total Other Financing             4                0      0.0            400,000        8.3              --

TOTAL RESOURCES                         $   3,701,420     100.0     % $   4,835,589    100.0 %        30.6 %



(142) Second Quarter Real Estate Excise Tax Fund Revenues and
Sources Notes


1. The growth in Real Estate Excise Taxes was quite stable at 5 to 6% from 2000 through
   2002 before experiencing a 43% increase in 2003. The 2004 and 2005 increases were
   21.5% and 10.2% respectively. The 2006 budget was conservatively developed based
   on a 3% decrease from the current estimate. The current estimate was developed by
   dividing July year-to-date collections by the July average percent to total for the last four
   years.
2. Intergovernmental Revenues are dependent upon project eligibility and available
   funding and therefore vary each year.
3. The growth in Investment Interest reflects higher reserve balances.
4. Other Financing Sources is a one-time reimbursement for a project with multiple funding
   sources.




City Of Bellingham, Washington                                                                   Page 85
2006 Adopted Budget
Budget Summary


                                                                                                  Change
                                    N
                                             2005 Adopted                  2006 Budget          from 2005
  (160) PUBLIC SAFETY DISPATCH      O
                                                                                                 Adopted
  FUND REVENUES AND SOURCES         T
                                                        Percent                      Percent      Percent
                                    E
                                            Amount      of Total         Amount      of Total   Incr (Decr)

Estimated Beginning Reserve         1   $    713,721      17.5     % $   1,197,066     25.4 %      67.7 %

  Total Intergovernmental Revenue   2       1,913,072     46.9           1,988,662     42.3         4.0

  Total Goods & Services Charges            1,411,830     34.6           1,461,825     31.1         3.5

Investment Interest                 3         17,148        0.4            24,330        0.5       41.9
Other Miscellaneous Revenue                      200        0.0                 0        0.0     (100.0)

  Total Miscellaneous                         17,348        0.4            24,330        0.5       40.2

  Total Other Financing             4         20,567        0.5            31,783        0.7       54.5

TOTAL RESOURCES                         $   4,076,538    100.0     % $   4,703,666    100.0 %      15.4 %



(160) Public Safety Dispatch Fund Revenues and Sources Notes

1. Actual Beginning Reserves for 2005 were $433,000 higher than estimated due to
   $70,000 additional unanticipated Intergovernmental revenue and a reduction in the 2004
   budgeted public safety expenditures of $363,000.
2. Intergovernmental charges for telecommunication services and interfund goods and
   services charges anticipate an increase in community service levels.
3. The growth in Investment Interest reflects higher cash investment balances.
4. The increase in Other Financing Sources is due to an indirect cost allocation subsidy.




Page 86                                                       City Of Bellingham, Washington
                                                                        2006 Adopted Budget
                                                                                Budget Summary


                                                                                                     Change
                                     N
                                              2005 Adopted                  2006 Budget            from 2005
  (165) PUBLIC FACILITIES DISTRICT   O
                                                                                                    Adopted
  FUND REVENUES AND SOURCES          T
                                                         Percent                      Percent        Percent
                                     E
                                             Amount      of Total         Amount      of Total     Incr (Decr)

Estimated Beginning Reserve              $   3,800,692     80.3     % $   3,948,486     79.3 %         3.9 %

Local Retail Sales Tax               1        890,000      18.8            992,000      21.0          11.5

  Total Taxes                                 890,000      18.8            992,000      19.9          11.5

  Total Goods & Services Charges                             0.0               960        0.0              --

Investment Interest                            40,000        0.8            35,842        0.7        (10.4)
Other Miscellaneous Revenue                     1,700        0.0             3,975        0.1        133.8

  Total Miscellaneous                          41,700        0.9            39,817        0.8         (4.5)

TOTAL RESOURCES                          $   4,732,392    100.0     % $   4,981,263    100.0 %         5.3 %



(165) Public Facilities District Fund Revenues and Sources Notes

1. The 2005 Sales Tax budget is lower than current projections indicate. The 2006 budget
   is based upon a 2% increase over the current estimate. The current estimate was
   developed by dividing October year-to-date collections by the average percent to total
   for the last four years. Although the construction industry is showing evidence of a
   decline, retail and motor vehicle sales are experiencing significant growth.




City Of Bellingham, Washington                                                                   Page 87
2006 Adopted Budget
Budget Summary


                                                                                                   Change
                                    N
  (430) STORM AND SURFACE                    2005 Adopted                   2006 Budget          from 2005
                                    O
  WATER UTILITY FUND REVENUES                                                                     Adopted
                                    T
  AND SOURCES                                            Percent                      Percent      Percent
                                    E
                                            Amount       of Total         Amount      of Total   Incr (Decr)

Estimated Beginning Reserve         1   $    797,120       16.0     % $    677,868      12.7 %     (15.0) %

  Total Licenses & Permits          2         25,000        0.5            270,000        5.1      980.0

  Total Intergovernmental Revenue              6,000        0.1             30,000        0.6      400.0

Storm Drainage Fees                 3         365,500       7.3             502,500      9.4        37.5
Storm Drainage Service Fees         4       3,475,000      69.6           3,500,000     65.6         0.7
Other Goods & Services Charges                297,297       6.0             296,275      5.6        (0.3)

  Total Goods & Services Charges            4,137,797      82.9           4,298,775     80.6         3.9

  Total Fines & Forfeits                             0      0.0              6,858        0.1           --

Investment Interest                 5         15,000        0.3             20,000        0.4       33.3
Other Miscellaneous Revenue                        0        0.0                500        0.0          --

  Total Miscellaneous                         15,000        0.3             20,500        0.4       36.7

  Total Other Financing             6         10,000        0.2             30,000        0.6      200.0

TOTAL RESOURCES                         $   4,990,917     100.0     % $   5,334,001    100.0 %       6.9 %



(430) Storm and Surface Water Utility Fund Revenues and Sources
Notes

1. Estimated Beginning Reserves for 2006 are slightly lower due to an increase in capital
   expenditures in 2005.
2. The increase in Total Licenses and Permits is due to a non-business permit fee increase
   effective 8/1/2005.
3. Storm drainage fees are system development charges. Fees are anticipated to increase
   due to growth.
4. Storm Drainage Service Fees charged on impervious surface calculations were
   increased 7/1/2005 and will increase again 8/1/2006.
5. The increase in Investment Interest is based on a higher rate of return.
6. The increase in Other Financing is due to anticipated revenue from street vacation
   income.




Page 88                                                        City Of Bellingham, Washington
                                                                         2006 Adopted Budget
                                                                                Budget Summary


                                                                                                      Change
                                    N
                                              2005 Adopted                  2006 Budget             from 2005
  (440) SOLID WASTE FUND            O
                                                                                                     Adopted
  REVENUES AND SOURCES              T
                                                         Percent                       Percent        Percent
                                    E
                                             Amount      of Total         Amount       of Total     Incr (Decr)

Estimated Beginning Reserve         1   $     895,807        8.7    % $   4,051,745      65.7 %       352.3 %

Solid Waste Pub Util Tax            2         630,000        6.1          1,055,700      10.2          67.6

  Total Taxes                                 630,000        6.1          1,055,700      10.2          67.6

  Total Intergovernmental Revenue             620,000        6.0           846,093       13.7          36.5

Solid Waste Fees - Clean Green                102,000        1.0            70,000        1.1         (31.4)
Interfund-General Gov't Serv.                  14,173        0.1            14,593        0.2          3.0

  Total Goods & Services Charges              116,173        1.1            84,593        1.4         (27.2)

Investment Interest                 3          38,000        0.4            60,629        1.0          59.6
Other Miscellaneous Revenue                       500        0.0            72,000        1.2        14300.0

  Total Miscellaneous                          38,500        0.4           132,629        2.1         244.5

Revenue Bond Proceeds                        8,000,000     77.7                    0      0.0        (100.0)

  Total Non Revenues                         8,000,000     77.7                    0      0.0        (100.0)

TOTAL RESOURCES                         $   10,300,480    100.0     % $   6,170,760     100.0 %       (40.1) %



(440) Solid Waste Fund Revenues and Sources Notes

1. The increase in Estimated Beginning Reserve is due to a revenue bond sale in 2005.
2. The increase in Solid Waste Public Utility Tax in 2006 reflects a rate increase
   implemented in 2005.
3. Investment Interest was underestimated in 2005. The 2006 estimate has been adjusted
   to more accurately reflect actual revenues.




City Of Bellingham, Washington                                                                    Page 89
2006 Adopted Budget
Budget Summary


                                                                                                  Change
                                   N
                                            2005 Adopted                   2006 Budget          from 2005
  (475) DEVELOPMENT SERVICES       O
                                                                                                 Adopted
  FUND REVENUES AND SOURCES        T
                                                        Percent                      Percent      Percent
                                   E
                                           Amount       of Total         Amount      of Total   Incr (Decr)

Estimated Beginning Reserve            $    613,181       21.5     % $    669,733      17.4 %       9.2 %

Building Permits                            780,000       27.4           1,180,000     41.5       51.3
Electrical Permits                          270,000        9.5             312,000     11.0       15.6
Plumbing Permits                            110,000        3.9             105,000      3.7       (4.5)
Mechanical Permits                          164,150        5.8             195,000      6.9       18.8
Other Licenses & Permits                     10,500        0.4             134,000      4.7     1176.2

  Total Licenses & Permits         1       1,334,650      46.9           1,926,000     67.7        44.3

Zoning & Subdivision Fees                   152,400        5.4            441,600      11.5       189.8
Plan Review Fees                            585,500       20.6            707,000      18.4        20.8
Interfund-Planning Services        2         48,902        1.7             26,612       0.7       (45.6)
Other Goods & Services Charges               22,500        0.8             44,950       1.2        99.8

  Total Goods & Services Charges            809,302       28.4           1,220,162     31.8        50.8

  Total Fines & Forfeits                            0      0.0                100        0.0           --

Investment Interest                3         85,000        3.0             23,450        0.6      (72.4)
Other Miscellaneous Revenue        4          3,550        0.1                213        0.0      (94.0)

  Total Miscellaneous                        88,550        3.1             23,663        0.6      (73.3)

TOTAL RESOURCES                        $   2,845,683     100.0     % $   3,839,658    100.0 %      34.9 %



(475) Development Services Fund Revenues and Sources Notes

1. Growth in Permit Fee revenue is due to a fee schedule increase approved in 2005 which
   becomes effective in 2006.
2. The decrease in Interfund Planning Service revenue is due to a change in percentage
   for FTE allocation in personnel.
3. The decrease in Investment Interest is due to an adjustment in the estimate for 2006
   based on actual 2005 revenue.
4. Miscellaneous Revenues was over-budgeted for 2005. 2006 reflects estimates based
   on 2005 actual results.




Page 90                                                       City Of Bellingham, Washington
                                                                        2006 Adopted Budget
                                                            Budget Summary




                      This page intentionally left blank.




City Of Bellingham, Washington                                     Page 91
2006 Adopted Budget
Budget Summary


Revenue Summary by Fund, Department, and Basic Account
                                                                             Goods &
                                                  Licenses &    Intergov-    Services
                                         Taxes       Permits   ernmental     Charges        Fines
Fund: 001 General
 100 FUND RESERVES                   42,891,000     511,500      820,100        5,400       1,000
 110 OFFICE OF THE MAYOR                      0           0            0      515,073           0
 120 CITY COUNCIL                             0           0            0      156,685           0
 170 HEARING EXAMINER                         0           0            0       46,055           0
 180 MUSEUM                                   0           0       34,000       12,459           0
 190 LIBRARY                                  0           0      118,000       24,000     120,000
 210 FINANCE                                  0           0            0    1,056,620           0
 220 HUMAN RESOURCES                          0           0        1,000      387,235           0
 250 ITSD                                     0     163,580       21,600      817,047           0
 260 LEGAL                                    0           0        6,539      407,269           0
 270 JUDICIAL & SUPPORT SERV                  0           0            0      425,703   1,330,000
 400 PARKS & RECREATION                  31,000           0            0    1,445,705           0
 500 PLANNING & COM DEVEL                     0       1,450      675,000      154,122           0
 700 FIRE                                     0           0      316,992      505,516           0
 800 POLICE                             280,000      37,063      136,108      291,383           0
 950 NON-DEPARTMENTAL                         0           0            0            0           0
     Total General                   43,202,000     713,593    2,129,339    6,250,272   1,451,000

Fund: 111 Street
 600 PUBLIC WORKS                     8,750,000      51,500    3,714,921    6,355,770          0

Fund: 112 Arterial St Construction
 600 PUBLIC WORKS                            0            0      458,300           0           0

Fund: 113 Paths & Trails Reserve
 600 PUBLIC WORKS                            0            0            0           0           0

Fund: 123 Parksite Acquisition
 400 PARKS & RECREATION                      0            0            0      27,982           0

Fund: 124 Computer Reserve
 250 ITSD                                    0            0            0           0           0

Fund: 125 Capital Maint
 100 FUND RESERVES                           0            0            0           0           0
 180 MUSEUM                                  0            0            0           0           0
 400 PARKS & RECREATION                      0            0            0           0           0
 600 PUBLIC WORKS                            0            0            0           0           0
     Total Capital Maint                     0            0            0           0           0

Fund: 126 Library Gift
 190 LIBRARY                                 0            0            0           0           0

Fund: 132 Squalicum Park/Olympic
 400 PARKS & RECREATION                      0            0      300,000           0           0




Page 92                                                   City Of Bellingham, Washington
                                                                    2006 Adopted Budget
                                                                           Budget Summary


                                                                                2006 Budget
                             Other        Revenue                                     Total
                   Non   Financing           Total   Beginning      Reserve       Revenues
      Misc.   Revenues     Sources   (No Reserves)    Reserves   Adjustment      & Reserves


   370,000           0    428,625       45,027,625   9,935,555   (44,124,652)    10,838,528
         0           0          0          515,073           0       422,313        937,386
         0           0          0          156,685           0       174,322        331,007
         0           0          0           46,055           0        95,681        141,736
    29,867           0          0           76,326           0     1,407,688      1,484,014
    58,603           0          0          320,603           0     2,890,003      3,210,606
     1,291           0          0        1,057,911           0       254,461      1,312,372
         0           0          0          388,235           0       692,973      1,081,208
       200           0          0        1,002,427      28,355       730,396      1,761,178
         0           0          0          413,808           0       748,323      1,162,131
    14,050           0          0        1,769,753           0     1,446,524      3,216,277
   326,979           0          0        1,803,684           0     4,431,881      6,235,565
   108,935       9,113          0          948,620           0     2,331,788      3,280,408
     9,100           0          0          831,608         400    10,819,746     11,651,754
    13,987           0          0          758,541      10,576    14,381,564     15,150,681
         0           0          0                0           0     3,296,989      3,296,989
   933,012       9,113    428,625       55,116,954   9,974,886             0     65,091,840


   289,556          0           0       19,161,747   4,807,498             0     23,969,245


    18,830          0           0         477,130      589,933             0      1,067,063


      310           0       4,700            5,010      17,922             0         22,932


     4,536          0           0          32,518       45,209             0         77,727


    32,585          0     590,000         622,585    1,310,405             0      1,932,990


    72,000          0     250,000         322,000      378,153     (259,300)        440,853
         0          0           0               0            0       53,500          53,500
         0          0           0               0            0      105,800         105,800
         0          0           0               0            0      100,000         100,000
    72,000          0     250,000         322,000      378,153            0         700,153


    15,000          0           0          15,000       30,461             0         45,461


    24,384          0     200,000         524,384       17,827             0        542,211




City Of Bellingham, Washington                                                         Page 93
2006 Adopted Budget
Budget Summary


Revenue Summary by Fund, Department and Basic Account
(continued)
                                                                                   Goods &
                                                        Licenses &    Intergov-    Services
                                               Taxes       Permits   ernmental     Charges    Fines
Fund: 141 1st 1/4% Real Estate Excise Tax
 100 FUND RESERVES                          1,850,000           0            0           0       0
 180 MUSEUM                                         0           0            0           0       0
 190 LIBRARY                                        0           0            0           0       0
 220 HUMAN RESOURCES                                0           0            0           0       0
 270 JUDICIAL & SUPPORT SERV                        0           0            0           0       0
 400 PARKS & RECREATION                             0           0            0           0       0
 500 PLANNING & COM DEVEL                           0           0            0           0       0
 600 PUBLIC WORKS                                   0           0            0           0       0
 700 FIRE                                           0           0            0           0       0
     Total 1st 1/4% REET                    1,850,000           0            0           0       0

Fund: 142 2nd 1/4% Real Estate Excise Tax
 100 FUND RESERVES                        1,850,000             0            0           0       0
 400 PARKS & RECREATION                           0             0            0           0       0
 600 PUBLIC WORKS                                 0             0      400,000           0       0
 950 NON-DEPARTMENTAL                             0             0            0           0       0
     Total 2nd 1/4% REET                  1,850,000             0      400,000           0       0

Fund: 151 Police Federal Equitable Share
 800 POLICE                                        0            0            0           0       0

Fund: 152 Asset Forfeiture/Drug Enforce.
 800 POLICE                                        0            0            0           0       0

Fund: 153 Criminal Justice
 800 POLICE                                        0            0      112,230           0       0

Fund: 160 Public Safety Dispatch
 700 FIRE                                          0            0            0            0      0
 800 POLICE                                        0            0    1,988,662    1,461,825      0
     Total Public Safety Dispatch                  0            0    1,988,662    1,461,825      0

Fund: 165 Public Facilities District
 960 PUBLIC FACILITIES DIST                  992,000            0            0         960       0

Fund: 172 Beyond Greenways
 400 PARKS & RECREATION                     1,506,300           0      500,000           0       0

Fund: 178 Sportsplex
 400 PARKS & RECREATION                            0            0            0           0       0

Fund: 180 Tourism
 500 PLANNING & COM DEVEL                    827,760            0            0           0       0




Page 94                                                         City Of Bellingham, Washington
                                                                          2006 Adopted Budget
                                                                           Budget Summary


                                                                                2006 Budget
                             Other        Revenue                                     Total
                   Non   Financing           Total   Beginning      Reserve       Revenues
      Misc.   Revenues     Sources   (No Reserves)    Reserves   Adjustment      & Reserves


    77,000          0      30,000        1,957,000   2,707,866    (3,446,750)     1,218,116
         0          0           0                0           0        60,000         60,000
         0          0           0                0           0       406,250        406,250
         0          0           0                0           0         7,500          7,500
         0          0           0                0           0     1,600,000      1,600,000
         0          0           0                0           0     1,002,000      1,002,000
         0          0           0                0           0        75,000         75,000
         0          0           0                0           0       215,000        215,000
         0          0           0                0           0        81,000         81,000
    77,000          0      30,000        1,957,000   2,707,866             0      4,664,866


    98,000          0           0        1,948,000   2,087,589    (2,616,592)     1,418,997
         0          0     400,000          400,000           0     1,400,500      1,800,500
         0          0           0          400,000           0       600,000      1,000,000
         0          0           0                0           0       616,092        616,092
    98,000          0     400,000        2,748,000   2,087,589             0      4,835,589


     2,120          0           0           2,120       60,672             0         62,792


   110,374          0           0         110,374      296,386             0        406,760


    11,506          0           0         123,736      418,191             0        541,927


         0          0           0                0           0      978,546         978,546
    24,330          0      31,783        3,506,600   1,197,066     (978,546)      3,725,120
    24,330          0      31,783        3,506,600   1,197,066            0       4,703,666


    39,817          0           0        1,032,777   3,948,486             0      4,981,263


    55,680          0           0        2,061,980   1,295,403             0      3,357,383


     2,183          0           0           2,183        3,173             0          5,356


     8,900          0           0         836,660      286,215             0      1,122,875




City Of Bellingham, Washington                                                         Page 95
2006 Adopted Budget
Budget Summary


Revenue Summary by Fund, Department, and Basic Account
(continued)
                                                                              Goods &
                                                    Licenses &    Intergov-   Services
                                           Taxes       Permits   ernmental    Charges      Fines
Fund: 190 Housing/Community Development
 500 PLANNING & COM DEVEL                      0             0      950,000     348,700            0

Fund: 214 2001 Fire UTGO Bond
 210 FINANCE                              348,250            0            0           0            0

Fund: 222 1999 LTGO Bond Redemption
 210 FINANCE                                   0             0            0           0            0

Fund: 223 Refunding GO Bonds 1996
 210 FINANCE                                   0             0            0           0            0

Fund: 224 Sportsplex Acquistion Debt
 210 FINANCE                                   0             0            0           0            0

Fund: 225 2004 PFD/Civic Field LTGO
 210 FINANCE                                   0             0            0           0            0

Fund: 231 Drake Note
 210 FINANCE                                   0             0            0           0            0

Fund: 232 PW State Loan-Roeder Ave
 210 FINANCE                                   0             0            0           0            0

Fund: 233 PW State Loan-Woburn St
 210 FINANCE                                   0             0            0           0            0

Fund: 234 CERB Loans
 210 FINANCE                                   0             0            0      83,871            0

Fund: 235 PW Trust Loan-Str Overlay
 210 FINANCE                                   0             0            0           0            0

Fund: 245 LID Guaranty
 210 FINANCE                                   0             0            0           0            0

Fund: 313 City Hall Annex
 600 PUBLIC WORKS                              0             0            0           0            0

Fund: 341 Civic Field Improvement
 400 PARKS & RECREATION                        0             0            0           0            0

Fund: 410 Water
 600 PUBLIC WORKS                              0             0    3,232,371   12,578,711   38,500




Page 96                                                      City Of Bellingham, Washington
                                                                       2006 Adopted Budget
                                                                           Budget Summary


                                                                                2006 Budget
                               Other        Revenue                                   Total
                    Non    Financing           Total   Beginning      Reserve     Revenues
      Misc.    Revenues      Sources   (No Reserves)    Reserves   Adjustment    & Reserves


    36,976            0     153,796        1,489,472          0            0      1,489,472


     3,300            0           0         351,550       12,413           0        363,963


       19             0     558,524         558,543         539            0        559,082


    46,873            0     480,820         527,693       15,224           0        542,917


   259,002            0           0         259,002       23,248           0        282,250


         0            0    1,157,900       1,157,900          0            0      1,157,900


      210             0      17,754          17,964           6            0         17,970


    21,474            0      32,211          53,685         278            0         53,963


         0            0      54,512          54,512         350            0         54,862


    28,972            0           0         112,843           0            0        112,843


         0            0     169,889         169,889         831            0        170,720


    16,870            0           0          16,870      482,011           0        498,881


     1,080            0           0            1,080      20,112           0         21,192


         0            0    1,031,455       1,031,455          0            0      1,031,455


   314,905    10,000,000   3,400,000      29,564,487   2,825,246           0     32,389,733




City Of Bellingham, Washington                                                         Page 97
2006 Adopted Budget
Budget Summary


Revenue Summary by Fund, Department and Basic Account
(continued)
                                                                              Goods &
                                                    Licenses &    Intergov-   Services
                                          Taxes        Permits   ernmental    Charges      Fines
Fund: 420 Wastewater
 600 PUBLIC WORKS                              0             0       50,000   13,805,310   47,000

Fund: 430 Storm/Surface Water Utility
 600 PUBLIC WORKS                              0       270,000       30,000    4,298,775    6,858

Fund: 440 Solid Waste
 600 PUBLIC WORKS                       1,055,700            0      846,093      84,593            0

Fund: 456 Cemetery
 400 PARKS & RECREATION                        0             0            0     293,381            0

Fund: 460 Golf Course
 400 PARKS & RECREATION                        0             0            0     818,803        50

Fund: 465 Parking Services
 600 PUBLIC WORKS                              0             0            0           0            0

Fund: 470 Medic One
 700 FIRE                                983,550             0    1,336,200    3,032,187           0

Fund: 475 Development Services
 500 PLANNING & COM DEVEL                      0     1,926,000            0    1,220,162      100

Fund: 510 Fleet Administration
 600 PUBLIC WORKS                              0             0            0     196,757            0

Fund: 520 Purchasing/Materials Mngmt
 600 PUBLIC WORKS                              0             0            0    4,249,970           0

Fund: 530 Facilities Administration
 600 PUBLIC WORKS                              0             0            0           0            0

Fund: 540 Telecommunications
 250 ITSD                                      0             0            0     437,486            0

Fund: 550 Claims Litigation
 260 LEGAL                                     0             0            0           0            0

Fund: 561 Unemployment Compensation
 220 HUMAN RESOURCES                           0             0            0           0            0

Fund: 562 Workers Comp Self-Insurance
 220 HUMAN RESOURCES                           0             0            0           0            0




Page 98                                                      City Of Bellingham, Washington
                                                                       2006 Adopted Budget
                                                                          Budget Summary


                                                                               2006 Budget
                             Other        Revenue                                    Total
                   Non   Financing           Total   Beginning       Reserve     Revenues
      Misc.   Revenues     Sources   (No Reserves)    Reserves    Adjustment    & Reserves


   430,748     828,619          0       15,161,677   13,139,732           0     28,301,409


    20,500          0      30,000        4,656,133     677,868            0      5,334,001


   132,629          0           0        2,119,015    4,051,745           0      6,170,760


    12,658          0     221,480         527,519      326,291            0        853,810


     5,304          0           0         824,157      117,015            0        941,172


  1,428,045         0           0        1,428,045     411,899            0      1,839,944


    27,500          0     995,933        6,375,370     779,492            0      7,154,862


    23,663          0           0        3,169,925     669,733            0      3,839,658


  2,355,081         0      79,850        2,631,688    4,792,326           0      7,424,014


    18,388          0           0        4,268,358     878,564            0      5,146,922


  1,859,840         0           0        1,859,840     696,801            0      2,556,641


    21,031          0           0         458,517      416,483            0        875,000


   826,793       8,107          0         834,900     5,144,927           0      5,979,827


     5,000          0           0            5,000     361,512            0        366,512


   632,178          0           0         632,178      694,374            0      1,326,552




City Of Bellingham, Washington                                                        Page 99
2006 Adopted Budget
Budget Summary


Revenue Summary by Fund, Department and Basic Account
(continued)
                                                                                    Goods &
                                                        Licenses &    Intergov-     Services
                                               Taxes       Permits   ernmental      Charges       Fines
Fund: 565 Health Benefits
 220 HUMAN RESOURCES                               0             0            0             0             0

Fund: 612 Firefighter's Pensions
 220 HUMAN RESOURCES                        1,423,000            0       91,530             0             0

Fund: 613 Police Officer's Pensions
 220 HUMAN RESOURCES                               0             0            0             0             0

Fund: 614 Firefighter's LT Care
 220 HUMAN RESOURCES                               0             0            0             0             0

Fund: 615 Police Officer's LT Care
 220 HUMAN RESOURCES                               0             0            0             0             0

Fund: 701 Beyond Greenways Endowment
 400 PARKS & RECREATION                      177,680             0            0             0             0

Fund: 702 Nat Res Protect & Restoration
 600 PUBLIC WORKS                                  0             0            0             0             0

     Total All Funds                       62,966,240    2,961,093   16,139,646   55,545,515    1,543,508




                                                                 Licenses &
                                                                   Permits          Fines
                                          Other Financing           1.6%            0.9%
                                             Sources
                                               5.7%


                                   Non Revenues
    Revenues by Type                   6.0%
        All Funds                                                                 Taxes
     (No Reserves)                                                                34.9%
                             Intergovernmental
                                    8.9%


                                           Misc.                 Goods & Services
                                           11.2%                    Charges
                                                                     30.8%




Page 100                                                         City Of Bellingham, Washington
                                                                           2006 Adopted Budget
                                                                                 Budget Summary


                                                                                     2006 Budget
                                Other           Revenue                                      Total
                    Non     Financing              Total   Beginning       Reserve       Revenues
      Misc.    Revenues       Sources      (No Reserves)    Reserves    Adjustment      & Reserves


  8,017,052           0            0           8,017,052    1,124,883           0         9,141,935


   106,089       73,560            0           1,694,179    3,094,331           0         4,788,510


  1,012,442           0            0           1,012,442    1,278,823           0         2,291,265


   204,200            0            0            204,200      503,151            0          707,351


   196,507            0            0            196,507      469,646            0          666,153


    22,692            0            0            200,372     1,894,660           0         2,095,032


   222,000            0            0            222,000     1,721,310           0         1,943,310

 20,130,144   10,919,399   10,319,232        180,524,777   76,099,165           0       256,623,942




                                                       Medic One Fund          Housing &
                                                            3.5%               Community
                                                                            Development Fund
                                                                                  0.8%
                                        Wastewater Fund
                                             8.4%
    Revenues by Fund
      (No Reserves)
                                         Street Fund
                                            10.6%
                                                                            General Fund
                                                                               30.5%




                                                                        Non-Major and
                                        Water Fund
                                                                         Other Funds
                                         16.4%
                                                                            29.7%




City Of Bellingham, Washington                                                                Page 101
2006 Adopted Budget
Budget Summary


Expenditure Summary by Fund, Department, and Object


                                     Salaries &                              Other Serv   Inter Govt
                                        Wages       Benefits     Supplies    & Charges      Services
Fund: 001 General
 100 FUND RESERVES                             0            0            0            0            0
 110 OFFICE OF THE MAYOR                 578,686      159,213       21,390      140,447            0
 120 CITY COUNCIL                        203,002       70,157       21,870       14,730            0
 170 HEARING EXAMINER                    101,737       28,908        3,739        4,614            0
 180 MUSEUM                              864,290      279,610      128,778      128,430            0
 190 LIBRARY                           1,628,495      530,407      511,782       86,360          600
 210 FINANCE                             900,378      298,287       31,133      -71,970       91,820
 220 HUMAN RESOURCES                     661,285      211,495       47,890      120,681          220
 250 ITSD                                933,892      276,404       92,539      298,096        5,460
 260 LEGAL                               790,951      229,864       21,848       28,562            0
 270 JUDICIAL & SUPPORT SERV             908,028      303,833       51,895      249,337    1,556,905
 400 PARKS & RECREATION                3,371,741    1,088,160      400,890      711,769       59,071
 500 PLANNING & COM DEVEL                694,485      208,321       32,848    2,006,063       36,128
 700 FIRE                              8,040,355    1,802,129      275,743       93,014       94,200
 800 POLICE                           9,152,590    2,245,827      456,817      490,832      146,288
 950 NON-DEPARTMENTAL                        -            -            -        87,440    3,209,549
     Total General                   28,829,915    7,732,615    2,099,162    4,388,405    5,200,241

Fund: 111 Street
 600 PUBLIC WORKS                     4,853,906    1,538,654      217,872    3,266,101      644,114

Fund: 112 Arterial St Construction
 600 PUBLIC WORKS                           -            -            -            -        209,323

Fund: 113 Paths & Trails Reserve
 600 PUBLIC WORKS                           -            -            -            -            -

Fund: 123 Parksite Acquisition
 400 PARKS & RECREATION                     -            -            -            -            -

Fund: 124 Computer Reserve
 250 ITSD                                   -            -            -            -         20,000

Fund: 125 Capital Maint
 100 FUND RESERVES                          -            -            -            -            -
 180 MUSEUM                                 -            -            -            -            -
 400 PARKS & RECREATION                     -            -            -        105,800          -
 600 PUBLIC WORKS                           -            -            -        100,000          -
     Total Capital Maint                    -            -            -        205,800          -

Fund: 126 Library Gift
 190 LIBRARY                                -            -         15,000          -            -




Page 102                                                     City Of Bellingham, Washington
                                                                       2006 Adopted Budget
                                                                                   Budget Summary


                                                                                    2006 Budget

                                                      Expenditure                         Total
    Capital   Debt Svc     Debt Svc    Interfund            Total       Ending      Expenditure
    Outlay    Principal    Interest    Payments     (No Reserves)      Reserve       & Reserves


          0            0           0            0                0    10,838,528      10,838,528
          0            0           0       37,650          937,386             0         937,386
          0            0           0       21,248          331,007             0         331,007
          0            0           0        2,738          141,736             0         141,736
     20,500            0           0       62,406        1,484,014             0       1,484,014
          0            0           0      452,962        3,210,606             0       3,210,606
          0            0           0       62,724        1,312,372             0       1,312,372
          0            0           0       39,637        1,081,208             0       1,081,208
      6,487            0           0      109,495        1,722,373        38,805       1,761,178
          0            0           0       90,906        1,162,131             0       1,162,131
          0            0           0      146,279        3,216,277             0       3,216,277
     60,100            0           0      543,834        6,235,565             0       6,235,565
     20,000            0           0      241,072        3,238,917        41,491       3,280,408
    391,109            0           0      954,704       11,651,254           500      11,651,754
        -          -           -       2,646,501       15,138,855        11,826      15,150,681
        -          -           -              -         3,296,989            -        3,296,989
   498,196         -           -       5,412,156       54,160,690    10,931,150      65,091,840


  9,180,000        -           -       3,538,985       23,239,632      729,613       23,969,245


   300,000         -           -             -           509,323       557,740        1,067,063


        -          -           -             -                -          22,932          22,932


    30,000         -           -             -             30,000        47,727          77,727


   526,000         -           -             -           546,000      1,386,990       1,932,990


       -           -           -             -               -         440,853         440,853
    53,500         -           -             -            53,500           -            53,500
       -           -           -             -           105,800           -           105,800
       -           -           -             -           100,000           -           100,000
    53,500         -           -             -           259,300       440,853         700,153


        -          -           -             -             15,000        30,461          45,461




City Of Bellingham, Washington                                                             Page 103
2006 Adopted Budget
Budget Summary


Expenditure Summary by Fund, Department, and Object (continued)


                                            Salaries &                            Other Serv    Inter Govt
                                               Wages     Benefits     Supplies    & Charges       Services
Fund: 132 Squalicum Park/Olympic
 400 PARKS & RECREATION                            -           -            -              -             -

Fund: 141 1st 1/4% Real Estate Excise Tax
 100 FUND RESERVES                                 -           -            -             -              -
 180 MUSEUM                                        -           -            -          60,000            -
 190 LIBRARY                                       -           -            -             -              -
 220 HUMAN RESOURCES                               -           -            -           7,500            -
 270 JUDICIAL & SUPPORT SERV                       -           -            -             -        1,600,000
 400 PARKS & RECREATION                            -           -          5,000        60,000            -
 500 PLANNING & COM DEVEL                          -           -            -             -              -
 600 PUBLIC WORKS                                  -           -            -         215,000            -
 700 FIRE                                          -           -            -          81,000            -
     Total 1st 1/4% REET                           -           -          5,000       423,500      1,600,000

Fund: 142 2nd 1/4% Real Estate Excise Tax
 100 FUND RESERVES                                 -           -            -             -              -
 400 PARKS & RECREATION                            -           -            -          60,000        400,000
 600 PUBLIC WORKS                                  -           -            -         450,000            -
 950 NON-DEPARTMENTAL                              -           -            -             -          616,092
     Total 2nd 1/4% REET                           -           -            -         510,000      1,016,092

Fund: 151 Police Federal Equitable Share
 800 POLICE                                        -           -            -              -             -

Fund: 152 Asset Forfeiture/Drug Enforce.
 800 POLICE                                        -           -         80,912       149,000         17,500

Fund: 153 Criminal Justice
 800 POLICE                                        -           -            -              -         291,125

Fund: 160 Public Safety Dispatch
 700 FIRE                                      613,973    214,212        17,355        22,635            -
 800 POLICE                                  1,371,852    440,478        30,995       445,244         14,998
     Total Public Safety Dispatch            1,985,825    654,690        48,350       467,879         14,998

Fund: 165 Public Facilities District
 960 PUBLIC FACILITIES DIST                     65,953     18,468        12,819       429,688        541,808

Fund: 172 Beyond Greenways
 400 PARKS & RECREATION                         59,967     17,466           146         5,261                72

Fund: 178 Sportsplex
 400 PARKS & RECREATION                            -           -            -              -             -

Fund: 180 Tourism
 500 PLANNING & COM DEVEL                          -           -          1,100       784,512        100,000




Page 104                                                           City Of Bellingham, Washington
                                                                             2006 Adopted Budget
                                                                             Budget Summary


                                                                              2006 Budget

                                                   Expenditure                      Total
    Capital   Debt Svc    Debt Svc   Interfund           Total     Ending     Expenditure
    Outlay    Principal   Interest   Payments    (No Reserves)    Reserve      & Reserves


   500,000         -          -           -           500,000      42,211        542,211


        -          -          -           -                -     1,218,116      1,218,116
        -          -          -           -             60,000         -           60,000
    406,250        -          -           -            406,250         -          406,250
        -          -          -           -              7,500         -            7,500
        -          -          -           -          1,600,000         -        1,600,000
    925,000        -          -        12,000        1,002,000         -        1,002,000
     75,000        -          -           -             75,000         -           75,000
        -          -          -           -            215,000         -          215,000
        -          -          -           -             81,000         -           81,000
  1,406,250        -          -        12,000        3,446,750   1,218,116      4,664,866


        -          -          -           -                -     1,418,997      1,418,997
  1,230,000        -          -       110,500        1,800,500         -        1,800,500
    550,000        -          -           -          1,000,000         -        1,000,000
        -          -          -           -            616,092         -          616,092
  1,780,000        -          -       110,500        3,416,592   1,418,997      4,835,589


        -          -          -           -                -       62,792         62,792


    36,000         -          -        22,572         305,984     100,776        406,760


        -          -          -           -           291,125     250,802        541,927


       -           -          -       110,371          978,546         -          978,546
    15,000         -          -       244,969        2,563,536   1,161,584      3,725,120
    15,000         -          -       355,340        3,542,082   1,161,584      4,703,666


  2,000,000        -          -        51,615        3,120,351   1,860,912      4,981,263


  1,900,000        -          -        56,520        2,039,432   1,317,951      3,357,383


        -          -          -           -                -        5,356           5,356


        -          -          -        15,521         901,133     221,742       1,122,875




City Of Bellingham, Washington                                                       Page 105
2006 Adopted Budget
Budget Summary


Expenditure Summary by Fund, Department, and Object (continued)


                                       Salaries &                            Other Serv     Inter Govt
                                          Wages     Benefits     Supplies    & Charges        Services
                                                                                                 G78
Fund: 190 Housing/Community Development
 500 PLANNING & COM DEVEL               476,164      150,848        18,005       551,584           6,290

Fund: 214 2001 Fire UTGO Bond
 210 FINANCE                                  -           -            -              -              -

Fund: 222 1999 LTGO Bond Redemption
 210 FINANCE                                  -           -            -              -              -

Fund: 223 Refunding GO Bonds 1996
 210 FINANCE                                  -           -            -              -              -

Fund: 224 Sportsplex Acquistion Debt
 210 FINANCE                                  -           -            -              -              -

Fund: 225 2004 PFD/Civic Field LTGO
 210 FINANCE                                  -           -            -              -              -

Fund: 231 Drake Note
 210 FINANCE                                  -           -            -              -              -

Fund: 232 PW State Loan-Roeder Ave
 210 FINANCE                                  -           -            -              -              -

Fund: 233 PW State Loan-Woburn St
 210 FINANCE                                  -           -            -              -              -

Fund: 234 CERB Loans
 210 FINANCE                                  -           -            -              -              -

Fund: 235 PW Trust Loan-Str Overlay
 210 FINANCE                                  -           -            -              -              -

Fund: 245 LID Guaranty
 210 FINANCE                                  -           -            -              -              -

Fund: 313 City Hall Annex
 600 PUBLIC WORKS                             -           -            -              -              -

Fund: 341 Civic Field Improvement
 400 PARKS & RECREATION                       -           -            -              -              -

Fund: 410 Water
 600 PUBLIC WORKS                       1,606,648    565,539       128,957      2,565,136      2,202,050

Fund: 420 Wastewater
 600 PUBLIC WORKS                       1,993,033    659,155        75,431      2,140,412      2,919,894



Page 106                                                      City Of Bellingham, Washington
                                                                        2006 Adopted Budget
                                                                               Budget Summary


                                                                                2006 Budget

                                                   Expenditure                        Total
    Capital   Debt Svc    Debt Svc   Interfund           Total     Ending       Expenditure
    Outlay    Principal   Interest   Payments    (No Reserves)    Reserve        & Reserves


    79,535          -         -       207,046        1,489,472         -          1,489,472


        -      270,000     76,030          -          346,030      17,933          363,963


        -      450,000    108,543          -          558,543         539          559,082


        -      395,000    132,693          -          527,693      15,224          542,917


        -       95,000    163,894          -          258,894      23,356          282,250


        -      500,000    657,900          -         1,157,900         -          1,157,900


        -        5,664     12,300          -           17,964              6        17,970


        -       52,632      1,053          -           53,685         278           53,963


        -       52,924      1,588          -           54,512         350           54,862


        -       83,871     28,972          -          112,843          -           112,843


        -      156,579     13,310          -          169,889         831          170,720


        -           -         -            -               -      498,881          498,881


        -           -         -            -               -       21,192           21,192


  1,031,455         -         -            -         1,031,455         -          1,031,455


 15,068,000   1,067,154   461,005    4,588,349      28,252,838   4,136,895       32,389,733


  5,565,659   1,778,447   467,446    3,429,637      19,029,114   9,272,295       28,301,409




City Of Bellingham, Washington                                                         Page 107
2006 Adopted Budget
Budget Summary


Expenditure Summary by Fund, Department, and Object (continued)


                                        Salaries &                            Other Serv     Inter Govt
                                           Wages     Benefits     Supplies    & Charges        Services
Fund: 430 Storm/Surface Water Utility
 600 PUBLIC WORKS                          723,493    261,338        70,403       448,631         520,762

Fund: 440 Solid Waste
 600 PUBLIC WORKS                           96,227      34,866       10,700       348,251           1,050

Fund: 456 Cemetery
 400 PARKS & RECREATION                    208,885      81,150       82,984         39,112         17,256

Fund: 460 Golf Course
 400 PARKS & RECREATION                        -           -         49,474       548,258          38,210

Fund: 465 Parking Services
 600 PUBLIC WORKS                          294,987    117,479        85,867       310,813          11,521

Fund: 470 Medic One
 700 FIRE                                3,084,157    740,460       346,450       255,698          58,051

Fund: 475 Development Services
 500 PLANNING & COM DEVEL                1,571,150    496,097        62,632       176,746             -

Fund: 510 Fleet Administration
 600 PUBLIC WORKS                          427,309    141,358         3,599       236,200             -

Fund: 520 Purchasing/Materials Mngmt
 600 PUBLIC WORKS                          406,051    137,062     3,208,210         61,140          3,800

Fund: 530 Facilities Administration
 600 PUBLIC WORKS                          511,619    225,831         6,195       814,710             -

Fund: 540 Telecommunications
 250 ITSD                                      -           -          4,325       365,816          12,558

Fund: 550 Claims Litigation
 260 LEGAL                                     -           -          6,138       629,821             -

Fund: 561 Unemployment Compensation
 220 HUMAN RESOURCES                           -      120,000           -              -              -

Fund: 562 Workers Comp Self-Insurance
 220 HUMAN RESOURCES                       101,717    201,973        31,300       314,311          70,000

Fund: 565 Health Benefits
 220 HUMAN RESOURCES                        96,627      54,120       23,247      7,878,750            320

Fund: 612 Firefighter's Pensions
 220 HUMAN RESOURCES                           -     1,445,000       70,100         17,400            -




Page 108                                                       City Of Bellingham, Washington
                                                                         2006 Adopted Budget
                                                                             Budget Summary


                                                                              2006 Budget

                                                   Expenditure                      Total
    Capital   Debt Svc    Debt Svc   Interfund           Total     Ending     Expenditure
    Outlay    Principal   Interest   Payments    (No Reserves)    Reserve      & Reserves


   880,000         -          -      1,928,860       4,833,487    500,514       5,334,001


  2,970,000   265,000     517,865     218,709        4,462,668   1,708,092      6,170,760


        -          -          -       125,836         555,223     298,587        853,810


        -      73,560      12,089      71,199         792,790     148,382        941,172


   230,000    100,000      29,733     258,012        1,438,412    401,532       1,839,944


   144,640         -          -      1,306,256       5,935,712   1,219,150      7,154,862


    35,000         -          -       570,640        2,912,265    927,393       3,839,658


  1,906,000        -          -       988,667        3,703,133   3,720,881      7,424,014


        -          -          -       403,595        4,219,858    927,064       5,146,922


        -          -          -       312,729        1,871,084    685,557       2,556,641


        -          -          -       147,760         530,459     344,541        875,000


        -          -          -       202,262         838,221    5,141,606      5,979,827


        -          -          -         4,666         124,666     241,846        366,512


        -          -          -        21,975         741,276     585,276       1,326,552


        -          -          -       151,368        8,204,432    937,503       9,141,935


        -          -          -           537        1,533,037   3,255,473      4,788,510




City Of Bellingham, Washington                                                       Page 109
2006 Adopted Budget
Budget Summary


Expenditure Summary by Fund, Department, and Object (continued)


                                            Salaries &                               Other Serv      Inter Govt
                                               Wages      Benefits       Supplies    & Charges         Services
Fund: 613 Police Officer's Pensions
 220 HUMAN RESOURCES                                -         718,000       45,100          35,250            -

Fund: 614 Firefighter's LT Care
 220 HUMAN RESOURCES                                -             -            -           180,500            -

Fund: 615 Police Officer's LT Care
 220 HUMAN RESOURCES                                -             -            -           130,500            -

Fund: 701 Beyond Greenways Endowment
 400 PARKS & RECREATION                             -             -            -                -             -

Fund: 702 Nat Res Protect & Restoration
 600 PUBLIC WORKS                                   -             -            -                -             -

     Total All Funds                        47,393,633   16,112,169      6,809,478      28,679,185     15,517,035




                                                                 Supplies
                                               Debt Service       3.5%
                                                  4.2%
                                       Intergovt
                                       Services
                                         8.0%
                                                                             Salaries
                                                                             & Wages
    Expenditures by Type Interfund
                         Payments                                             24.5%
         All Funds
                           12.7%
       (No Reserves)                                                                 Benefits
                                                                                      8.3%


                                     Other Serv &
                                       Charges
                                        14.8%                                           Capital Outlay
                                                                                           23.9%




Page 110                                                              City Of Bellingham, Washington
                                                                                2006 Adopted Budget
                                                                                    Budget Summary


                                                                                     2006 Budget

                                                       Expenditure                         Total
    Capital   Debt Svc    Debt Svc       Interfund           Total        Ending     Expenditure
    Outlay    Principal   Interest       Payments    (No Reserves)       Reserve      & Reserves


        -           -           -              322        798,672       1,492,593      2,291,265


        -           -           -              -          180,500         526,851       707,351


        -           -           -              -          130,500         535,653       666,153


        -           -           -              -               -        2,095,032      2,095,032


        -           -           -              -               -        1,943,310      1,943,310

 46,135,235   5,345,831   2,684,421     24,513,634     193,190,621     63,433,321    256,623,942




                                                                             Housing &
                                                    Medic One Fund           Community
                                    Wastewater Fund      3.1%               Development
                                         9.8%                                  Fund
                                                                               0.8%

                                      Street Fund
                                         12.0%

    Expenditures by Fund                                               Non-Major and
       (No Reserves)                                                    Other Funds
                                                                           31.6%



                                Water Fund
                                                                   General Fund
                                 14.6%
                                                                      28.0%




City Of Bellingham, Washington                                                              Page 111
2006 Adopted Budget
Budget Summary


Changes in Reserve Balances


                                        Beginning                            Funds
      Fund                               Reserve      +   Revenues      =   Available     -   Expenditures
        Major Funds
  1   General                             9,974,886        55,116,954        65,091,840         54,160,690
111   Street                              4,807,498        19,161,747        23,969,245         23,239,632
190   Housing/Community Development               0         1,489,472         1,489,472          1,489,472
410   Water                               2,825,246        29,564,487        32,389,733         28,252,838
420   Wastewater                         13,139,732        15,161,677        28,301,409         19,029,114
470   Medic One                             779,492         6,375,370         7,154,862          5,935,712
        Total Major Funds                31,526,854       126,869,707       158,396,561        132,107,458

        Non-Major Funds
112   Arterial St Construction              589,933          477,130          1,067,063            509,323
113   Paths & Trails Reserve                 17,922            5,010             22,932                  0
123   Parksite Acquisition                   45,209           32,518             77,727             30,000
124   Computer Reserve                    1,310,405          622,585          1,932,990            546,000
125   Capital Maint                         378,153          322,000            700,153            259,300

126   Library Gift                           30,461            15,000            45,461             15,000
132   Squalicum Park/Olympic                 17,827           524,384           542,211            500,000
141   1st 1/4% Real Estate Excise Tax     2,707,866         1,957,000         4,664,866          3,446,750
142   2nd 1/4% Real Estate Excise Tax     2,087,589         2,748,000         4,835,589          3,416,592
151   Police Federal Equitable Share         60,672             2,120            62,792                  0

152   Asset Forfeiture/Drug Enforce.        296,386           110,374           406,760            305,984
153   Criminal Justice                      418,191           123,736           541,927            291,125
160   Public Safety Dispatch              1,197,066         3,506,600         4,703,666          3,542,082
165   Public Facilities District          3,948,486         1,032,777         4,981,263          3,120,351
172   Beyond Greenways                    1,295,403         2,061,980         3,357,383          2,039,432

178   Sportsplex                             3,173             2,183              5,356                  0
180   Tourism                              286,215           836,660          1,122,875            901,133
214   2001 Fire UTGO Bond                   12,413           351,550            363,963            346,030
222   1999 LTGO Bond Redemption                539           558,543            559,082            558,543
223   Refunding GO Bonds 1996               15,224           527,693            542,917            527,693

224   Sportsplex Acquistion Debt            23,248            259,002           282,250            258,894
225   2004 PFD/Civic Field LTGO                  0          1,157,900         1,157,900          1,157,900
231   Drake Note                                 6             17,964            17,970             17,964
232   PW State Loan-Roeder Ave                 278             53,685            53,963             53,685
233   PW State Loan-Woburn St                  350             54,512            54,862             54,512

234   CERB Loans                                 0            112,843           112,843            112,843
235   PW Trust Loan-Str Overlay                831            169,889           170,720            169,889
245   LID Guaranty                         482,011             16,870           498,881                  0
313   City Hall Annex                       20,112              1,080            21,192                  0
341   Civic Field Improvement                    0          1,031,455         1,031,455          1,031,455




Page 112                                                     City Of Bellingham, Washington
                                                                       2006 Adopted Budget
                                                                   Budget Summary




    Ending        Dollar       Percent
=   Reserve      Change        Change      Changes in Reserve Balances

    10,931,150      956,264        9.6%    Explanations are provided for changes in
       729,613   (4,077,885)     -84.8%
                                           reserve balances for individual funds of
             0            0           --
     4,136,895    1,311,649       46.4%
                                           more than 10% or $250,000 for major
     9,272,295   (3,867,437)     -29.4%    funds and more than $250,000 for non-
     1,219,150      439,658       56.4%    major or other funds. The change of the
    26,289,103   (5,237,751)     -16.6%    non-major funds aggregate is more than
                                           10%; however, the explanations provided
                                           are sufficient for the total change. The
       557,740      (32,193)      -5.5%    criteria to qualify as a major fund are
        22,932        5,010       28.0%
        47,727        2,518        5.6%
                                           defined in the Glossary. Calculations for
     1,386,990       76,585        5.8%    non-major funds are based upon 2004
       440,853       62,700       16.6%    actual figures.

        30,461            0        0.0%    Major Funds
        42,211       24,384      136.8%
     1,218,116   (1,489,750)     -55.0%    001 General Fund
     1,418,997     (668,592)     -32.0%
                                           The General Fund expenditure budget
        62,792        2,120        3.5%
                                           includes an estimated turnback of
       100,776     (195,610)     -66.0%    $1,600,000, or approximately 3% of 2005
       250,802     (167,389)     -40.0%    expenditures. The inclusion of a turnback
     1,161,584      (35,482)      -3.0%    forecast was implemented this year to
     1,860,912   (2,087,574)     -52.9%    project a more realistic estimate of actual
     1,317,951       22,548        1.7%    expenditures and ending reserves. The
                                           use of this method is also advantageous
        5,356         2,183       68.8%
      221,742       (64,473)     -22.5%
                                           because it will decrease the adjustment
       17,933         5,520       44.5%    required at the beginning of each year to
          539             0        0.0%    reconcile to actual beginning reserves.
       15,224             0        0.0%
                                           111 Street Fund
       23,356          108         0.5%    Reduction in ending reserve is a result of
            0            0            --   the transfer of several new projects from
            6            0         0.0%
          278            0         0.0%
                                           the First Quarter Real Estate Excise
          350            0         0.0%    Fund.

            0             0           --   410 Water Fund
          831             0        0.0%    The beginning reserves in this fund
      498,881        16,870        3.5%    contain the proceeds from a 2005 bond
       21,192         1,080        5.4%    issue for land acquisition in the
            0             0           --
                                           Watershed. The 2006 expenditure budget
                                           includes the use of $3,000,000 of the
                                           bond proceeds for this purpose.



City Of Bellingham, Washington                                              Page 113
2006 Adopted Budget
Budget Summary


Changes in Reserve Balances (continued)


                                      Beginning                            Funds
      Fund                             Reserve      +   Revenues      =   Available     -   Expenditures



430   Storm/Surface Water Utility         677,868         4,656,133         5,334,001          4,833,487
440   Solid Waste                       4,051,745         2,119,015         6,170,760          4,462,668
456   Cemetery                            326,291           527,519           853,810            555,223
460   Golf Course                         117,015           824,157           941,172            792,790
465   Parking Services                    411,899         1,428,045         1,839,944          1,438,412

475   Development Services                669,733         3,169,925         3,839,658          2,912,265
510   Fleet Administration              4,792,326         2,631,688         7,424,014          3,703,133
520   Purchasing/Materials Mngmt          878,564         4,268,358         5,146,922          4,219,858
530   Facilities Administration           696,801         1,859,840         2,556,641          1,871,084
540   Telecommunications                  416,483           458,517           875,000            530,459

550   Claims Litigation                 5,144,927           834,900         5,979,827            838,221
561   Unemployment Compensation           361,512             5,000           366,512            124,666
562   Workers Comp Self-Insurance         694,374           632,178         1,326,552            741,276
565   Health Benefits                   1,124,883         8,017,052         9,141,935          8,204,432
612   Firefighter's Pensions            3,094,331         1,694,179         4,788,510          1,533,037

613   Police Officer's Pensions         1,278,823         1,012,442         2,291,265            798,672
614   Firefighter's LT Care               503,151           204,200           707,351            180,500
615   Police Officer's LT Care            469,646           196,507           666,153            130,500
701   Beyond Greenways Endowment        1,894,660           200,372         2,095,032                  0
702   Nat Res Protect & Restoration     1,721,310           222,000         1,943,310                  0
      Total Non-Major Funds            44,572,311        53,655,070        98,227,381         61,083,163

Total All Funds                        76,099,165       180,524,777       256,623,942        193,190,621




Page 114                                                   City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                                                  Budget Summary




    Ending        Dollar        Percent
=   Reserve      Change         Change     420 Wastewater Fund
                                           The decrease in ending reserves reflects
       500,514      (177,354)     -26.2%   the planned use of beginning reserves as
     1,708,092    (2,343,653)     -57.8%
                                           a revenue source to purchase property for
       298,587       (27,704)      -8.5%
       148,382        31,367       26.8%
                                           future wastewater facility expansion.
       401,532       (10,367)      -2.5%
                                           470 Medic One Fund
       927,393       257,660       38.5%   The decrease in ending reserves reflects
     3,720,881    (1,071,445)     -22.4%   the planned use of beginning reserves as
       927,064        48,500        5.5%   a revenue source while awaiting voter
       685,557       (11,244)      -1.6%   approval of a sales tax measure to
       344,541       (71,942)     -17.3%
                                           resolve long-term funding issues.
     5,141,606       (3,321)       -0.1%
       241,846     (119,666)      -33.1%
       585,276     (109,098)      -15.7%   Non-Major and Other Funds
       937,503     (187,380)      -16.7%
     3,255,473      161,142         5.2%   The Non-Major and Other Funds are
                                           smaller dollar amounts and therefore, may
     1,492,593       213,770       16.7%
                                           have a high percentage change for an
       526,851        23,700        4.7%
       535,653        66,007       14.1%
                                           immaterial dollar amount. Explanations
     2,095,032       200,372       10.6%   are provided for reserves that have
     1,943,310       222,000       12.9%   changes in excess of $250,000.
    37,144,218    (7,428,093)     -16.7%
                                           141 and 142 First and Second Quarter
    63,433,321   (12,665,844)     -16.6%   Real Estate Excise Tax Fund
                                           The majority of the decrease in Fund 141
                                           is attributable to a one-time capital
                                           contribution to the construction of a new
                                           jail facility by the County. The reserve
                                           balance was accumulated over multiple
                                           years to provide for this expenditure. The
                                           beginning reserves in both Funds 141 and
                                           142 were also used as revenue sources
                                           for the acquisition of parkland in north
                                           Bellingham, design costs for construction
                                           of a new Library, an upgrade to the fire
                                           suppression system in the Museum, and
                                           various street-related projects.




City Of Bellingham, Washington                                             Page 115
2006 Adopted Budget
Budget Summary

165 Public Facilities District Fund
The beginning reserves in this fund contain the proceeds from a 2004 bond issue for
construction of a Children’s Museum/Art Museum. The 2006 budget includes the use of
these funds for architect, engineering, and design services; and site preparation for this
project.

440 Solid Waste Fund
The beginning reserves in this fund contain the proceeds from a general obligation bond
issue in 2005 to finance major remediation projects over a three year period. The 2006
budget includes a significant property acquisition necessary for completion of one of the
remediation projects.

475 Development Services Fund
Fees were increased in 2005 to bring ending reserves closer to the recommended goal of
six months operating expenditures and meet cost recovery expectations. The fund will be
monitored until the recommended goal of approximately $1,400,000 is reached.

510 Fleet Administration Fund
The majority of the decrease in the ending reserves reflects the normal fluctuation in the
replacement schedule for transportation and heavy duty equipment. The 2006 budget also
includes the use of beginning reserves as a revenue source for the purchase of new fleet
replacement software.




Page 116                                                   City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                 Budget Summary


Budget Ordinance




City Of Bellingham, Washington         Page 117
2006 Adopted Budget
Budget Summary


Budget Ordinance (continued)




Page 118                       City Of Bellingham, Washington
                                         2006 Adopted Budget
                                 Budget Summary


Budget Ordinance (continued)




City Of Bellingham, Washington         Page 119
2006 Adopted Budget
Budget Summary


Property Tax Levy Ordinance




Page 120                      City Of Bellingham, Washington
                                        2006 Adopted Budget
                                          Budget Summary


Property Tax Levy Ordinance (continued)




City Of Bellingham, Washington                  Page 121
2006 Adopted Budget
Budget Summary


Property Tax Levy Ordinance (continued)




Page 122                                  City Of Bellingham, Washington
                                                    2006 Adopted Budget
                                                                             Fire Department


                                FIRE DEPARTMENT


                                      ADMINISTRATION




               TRAINING AND
                                          MEDIC ONE               OPERATIONS
                 SAFETY




                            LIFE SAFETY             COMMUNICATIONS




                                Departmental Mission

    Our mission is to protect lives and property from the adverse effects of fires, medical
      emergencies and exposure to hazardous conditions created by man or nature.

We strive to accomplish this mission, employing safety as a primary goal in every program
and procedure, by maintaining fitness, competency and a sincere commitment to serve the
                                         public.




Description of Services

The department is organized and designed to provide responsive, efficient and effective life
and property protection within the City of Bellingham. The department is also responsible
for the Whatcom County Medic One emergency medical transport service and all Whatcom
County 9-1-1 fire and emergency medical dispatching.

Major initiatives administered by the department include: fire and medical emergency
dispatch and response, disaster preparedness, fire code compliance/enforcement, fire
investigation, public safety education, fire and emergency medical training, and billing for
Medic One services.

The Fire Department Headquarters Station, located at 1800 Broadway, is home to our
administrative functions. Six fire stations in the City and two medic stations in the county
meet our facility needs for emergency apparatus and crews. The department maintains a
small classroom and limited drill facility at 910 Alabama, co-located with the 9-1-1 What-
Comm Law Enforcement Dispatch Center.



City Of Bellingham, Washington                                                       Page 123
2006 Adopted Budget
Fire Department


Departmental Budget Summary


 Revenues, Resources and Fund        2004        2005          2006          Change from 2005
 Reserve Impact by Type             Actual      Adopted       Budget        Amount      Percent


Revenues
Taxes                                      0            0       983,550      983,550          --
Licenses and Permits                   1,375          600             0         (600)    -100.0%
Intergovernmental                  1,475,976    1,074,249     1,653,192      578,943       53.9%
Charges for Services               2,802,557    3,891,826     3,537,703     (354,123)      -9.1%
Miscellaneous                         50,523       41,575        36,600       (4,975)     -12.0%
Other Financing Sources            1,410,307      986,072       995,933        9,861        1.0%
  Subtotal of Revenues             5,740,738    5,994,322     7,206,978    1,212,656       20.2%
Adjustments to Fund Reserves
General                            9,452,718 11,202,121      10,819,646     (382,475)    -3.4%
Capital Maint                         16,284          0               0             0        --
1st 1/4% Real Estate Excise Tax            0          0          81,000        81,000        --
Public Safety Dispatch               817,549    930,993         978,546        47,553     5.1%
Medic One                            (68,746)    42,339        (439,658)    (481,997) -1138.4%
  Subtotal Reserve Adjustments    10,217,805 12,175,453      11,439,534      (735,919)    -6.0%
TOTAL ALL SOURCES                 15,958,543 18,169,775      18,646,512       476,737      2.6%



                                     2004        2005          2006         Change from 2005
 Expenditures by Group
                                    Actual      Adopted       Budget       Amount      Percent


Fire Administration                  880,336    1,329,193     1,682,981      353,788      26.6%
Fire Operations                    8,159,161   10,189,954     9,241,320     (948,634)     -9.3%
Fire Life Safety Operations          294,671      468,351       459,767       (8,584)     -1.8%
Fire Dept Training Operations        290,692      327,963       348,186       20,223       6.2%
Emergency Medical Services         5,516,134    4,923,321     5,935,712    1,012,391      20.6%
Fire/EMS Dispatch Operations         817,549      930,993       978,546       47,553       5.1%
TOTAL EXPENSE                     15,958,543   18,169,775    18,646,512      476,737       2.6%


                                     2004        2005          2006         Change from 2005
 Expenditures by Type
                                    Actual      Adopted       Budget       Amount      Percent


Salaries and Benefits             12,716,088   13,650,985   14,495,286       844,301       6.2%
Supplies                             546,447      795,693      639,548      (156,145)    -19.6%
Other Services and Charges           669,723    1,303,133      452,347      (850,786)    -65.3%
Intergovernmental Services           133,584      145,389      122,251       (23,138)    -15.9%
Interfund Charges                  1,679,256    2,029,575    2,371,331       341,756      16.8%
   Subtotal of Operations         15,745,098   17,924,775   18,080,763       155,988       0.9%
Capital Outlay                       213,445      245,000      535,749       290,749     118.7%
Interfund Transfers                        0            0       30,000        30,000         --
TOTAL EXPENSE                     15,958,543   18,169,775   18,646,512       476,737       2.6%


TOTAL PAID STAFF                       156.3        151.8         156.9          5.1        3.4%




Page 124                                                    City Of Bellingham, Washington
                                                                      2006 Adopted Budget
                                                                           Fire Department


Significant Budget Changes

•   Intergovernmental Revenues increased to adjust for 2004 actuals.
•   The increase in Emergency Medical Services and Administration and the addition of five
    FTEs is due to the extension of Medic 3 service in the County through 2006. This
    change was made mid-year in 2005.


Departmental Objectives for 2006

1. Establish and monitor emergency response time standards that comply with new state
   law.
2. Remodel administrative office to improve dispatch security, security of health care
   information, and customer traffic flow.
3. Revise dispatch triage criteria and associated EMS response levels.
4. Facilitate creation of a regional Incident Management Team to improve command and
   control capability during major incidents.
5. Complete installation of paperless medical incident reporting and billing system.
6. Restructure the relationship with Bellingham Technical College in delivery of the
   paramedic training program.
7. Provide two recruit academies for new employees.
8. Implement a formal qualification process for initial Rescue Technician and minimum
   continuing education requirements.
9. Complete apparatus operator qualification process for all current and future Driver /
   Engineers.
10. Complete revisions of the Bellingham Fire Department's "Development Standards" to
    comply with the current International Fire Code (IFC).
11. Establish a revised and expanded fee schedule for IFC operational permits, to be
    adopted into the Bellingham Municipal Code.
12. Increase Fire Department participation in Permit Center operations.
13. Implement a dispatcher medical and fire triage protocol quality assurance program.
14. Implement countywide fire station renumbering plan.




City Of Bellingham, Washington                                                     Page 125
2006 Adopted Budget
Fire Department


2005 Objectives with Accomplishments

1. Develop action plan for completing paramedic withdrawal from Whatcom County in
   2006.

   Worked with Whatcom County in developing an EMS strategic plan, culminating in the
   passage of an EMS sales tax measure in November, 2005. This maintains the
   countywide Whatcom Medic One program for at least the next six years.

2. Develop and implement company officer performance evaluation process.

   Postponed.

3. Evaluate response time impact of 2005 emergency operations redeployment.

   At Council direction, we did not redeploy emergency response crews as anticipated with
   the implementation of a Bellingham Medic One program and reduction of one engine
   company.

4. Overhaul fire related permit system for consistency with International Codes and Permit
   Center processes. (Council Goal 7)

   In coordination with the Development Services Division, we implemented several
   changes to the permit system and implemented revised permit fees consistent with the
   International Fire Code.

5. Establish a Fire Marshal position to effectively manage the Life Safety Division.

   Implemented the Fire Marshal position in February, 2005.

6. Install station alerting/monitoring systems to improve emergency communications.

   Objective deleted due to competing priorities and potential future changes in radio
   communications and station alerting.

7. Install fire dispatch geographical information systems (GIS) computer interface for
   emergency vehicle mobile data computers.

   Interface installed by WhatComm.

8. Secure grant funding for emergency medical dispatch (EMD) quality improvement
   computer software interface.

   Unsuccessful in receiving grants to support this purchase. Evaluating other potential
   grants or outright purchase in January 2006.




Page 126                                                  City Of Bellingham, Washington
                                                                    2006 Adopted Budget
                                                                             Fire Department


2005 Objectives with Accomplishments (continued)

9. Complete provider training and evaluate impact of electronic medical incident reporting
   on quality assurance program and ambulance billing procedures.

   Due to delays in establishing intranet connectivity at St. Joseph Hospital and a required
   total software upgrade we had to delay implementation until first quarter 2006.

10. Certify all fire apparatus operators to National Fire Protection Association standards.

   All assigned apparatus operators have completed training to the NFPA 1002 standard.
   Development of a continuing education program will begin in early 2006.

Additional Accomplishments:

   Placed one new fire engine in service.

   Deployed mobile data computers on each fire apparatus, providing detailed commercial
   building pre-incident plan information to fire crews.




City Of Bellingham, Washington                                                       Page 127
2006 Adopted Budget
Fire Department


Performance/Activity Measures

In the “05 Met” column, gray indicates that the 2005 Target is an estimate of activity only
and white indicates that the 2005 Target is a performance goal. If the white box is checked,
the goal was achieved.

  Performance /                   2003          2004          2005          2005         05         2006
  Activity Measure               Actual        Actual        Target        Actual        Met       Target


Emergency Operations Group
CITY OF BELLINGHAM INCIDENTS
Fire Engine Responses             9,059       9,802       8,500       8,277                           8,200
BFD Aid unit Responses                                    1,100       1,044                           1,500
Incidents by Type:
  Building Fires                     41          58          65          56                              60
  Fires in Other Structures           6           6           6           1                               5
  Chimney Fires                       7          14           5           5                               5
  Vehicle Fires                      66          68          68          53                              70
  Water Vehicle Fires                 6           8           5           0                               5
  Brush/Grass/Forest Fires           25          21          12          24                              12
  Chemical Spills                    17          10          10          10                              10
  Rescues                            13          13          13          17                              15
  Public Service                    470         525         600         184                             600
  False Fire Alarms                 599         735         600         627                             600
Mutual Aid Calls                      5          19          10          11                              10
Major Fires                           --          --          --          --                              --
Loss from Fire              $ 960,733 $ 1,472,818 $ 600,000 $ 291,492                          $    500,000
EMS INCIDENTS, CITY & COUNTY COMBINED
  Total Medic One Incidents      10,797      11,375      11,750      11,815                          12,338
Amount Billed               $ 4,310,149 $ 4,214,655 $ 4,454,000 $ 4,449,860                    $ 4,609,890
Amount Collected            $ 3,022,787 $ 2,798,370 $ 2,972,732 $ 3,060,570                    $ 3,032,187
Collection Rate                  70.1%       66.4%       66.7%       68.8%                           65.8%

Fire Services - Life Safety Group
Fire Safety Inspections by LSD    695                   45            30            87                  100
Building/Fire Code Plans
Reviewed                          532               817           879           704                     800

Building/Fire Code Inspections                                                  636
Average Permit Turnaround
Time (Days)                               14            70            60            60                      60
Fire Investigations                       11            14             9             7                      12
Structure fires per 1,000
Population                          < 1.0         < 1.0         < 1.0          <1.0                   < 1.0
Public Education Deliveries           167           169           145            84                     120
Class Participants                  4,799         4,150         4,050         1,002                   4,000
Company Inspections
Managed and Completed               2,000         1,210         1,330         1,512                   1,900




Page 128                                                        City Of Bellingham, Washington
                                                                          2006 Adopted Budget
                                                                       Fire Department


Performance/Activity Measures (continued)


 Performance /                  2003      2004      2005      2005     05      2006
 Activity Measure              Actual    Actual    Target    Actual    Met    Target


Communications Group
Fire/EMS incidents generated
for all of Whatcom County,
handled by Prospect
Communications                  16,014    17,455    19,025    16,898           20,737

Fire Services - Training Group
Driver                         2,459       1,402     1,500     1,462            1,500
Rescue                         1,628       1,228     1,200     1,091            1,200
Self-Contained Breathing
Apparatus                      1,733       1,047     1,100       905            1,200
Emergency Medical Technician
(EMT)                          1,950         938     1,200     1,711            1,400
Paramedic Continuing
Education                      2,056       2,373     2,000     1,530            2,000
Hazardous Materials              487         599       500       559              500
Training Academy               1,728         -       2,500     2,612            4,400
Other Training                 9,500       8,189     9,000     4,560            9,000
  TOTAL TRAINING HOURS        21,541      15,776    19,000    14,430           21,200




City Of Bellingham, Washington                                               Page 129
2006 Adopted Budget
Fire Department




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Page 130                                     City Of Bellingham, Washington
                                                       2006 Adopted Budget
                                                                          Police Department


                              POLICE DEPARTMENT

                                       POLICE
                                   ADMINISTRATION



                    POLICE                                POLICE
                   SERVICES                             OPERATIONS

                                                                     UNIFORMED
                                 OFFICE OF                           OPERATIONS
       RECORDS
                               PROFESSIONAL
                               RESPONSIBILITY                          SPECIAL
                                                                     OPERATIONS
      WHAT-COMM                  PROACTIVE
       DISPATCH                   SERVICES
                                                                    INVESTIGATION




                                Departmental Mission

The primary mission of the Bellingham Police Department (BPD) is to coordinate and lead
 efforts with the community to preserve the public peace, protect the rights of people and
    property, prevent crime and provide assistance to citizens in urgent situations. The
department is responsible for the enforcement of federal laws, Washington State laws, and
               City ordinances within the boundaries of the City of Bellingham.

   The department enforces the law in a fair and impartial manner, recognizing both the
    statutory and judicial limitations of police authority and the constitutional rights of all
persons. It is not the role of the department to legislate, render legal judgments, or punish.

The department serves the people of Bellingham by providing law enforcement service in a
   professional and courteous manner and it is to these people that the department is
                                ultimately responsible.




Description of Services

The Bellingham Police Department provides a full range of police services including crime
suppression and investigation, traffic enforcement, traffic accident investigation, and
community-oriented problem solving projects. It maintains a team of specialists trained in
the use of special weapons and tactics to deal with hazardous situations that present a high
level of danger to public safety. The Police Department includes support activities for
personnel recruiting and training, records resources, and 24-hour communications and
dispatch services. It is supported by community volunteer programs.



City Of Bellingham, Washington                                                       Page 131
2006 Adopted Budget
Police Department


Departmental Budget Summary


 Revenues, Resources and Fund       2004       2005          2006       Change from 2005
 Reserve Impact by Type            Actual     Adopted       Budget     Amount      Percent


Revenues
Taxes                               301,527     300,000      280,000     (20,000)     -6.7%
Licenses and Permits                 37,063      41,200       37,063      (4,137)    -10.0%
Intergovernmental                 2,417,443   2,286,188    2,237,000     (49,188)     -2.2%
Charges for Services              1,626,693   1,696,821    1,753,208      56,387       3.3%
Fines and Forfeits                       25           0            0           0          --
Miscellaneous                       386,958     260,550      162,317     (98,233)    -37.7%
Other Financing Sources              29,092      20,567       31,783      11,216      54.5%
  Subtotal of Revenues            4,798,801   4,605,326    4,501,371    (103,955)      -2.3%
Adjustments to Fund Reserves
General                          12,433,503 13,253,716 14,380,314      1,126,598     8.5%
Police Federal Equitable Share        8,029        (52)    (2,120)        (2,068) 3976.9%
Asset Forfeiture/Drug Enforce.      147,062    (12,573)   195,610        208,183 -1655.8%
Criminal Justice                    114,567    141,388    167,389         26,001    18.4%
Public Safety Dispatch             (706,449)  (930,192)  (943,064)       (12,872)    1.4%
  Subtotal Reserve Adjustments   11,996,712 12,452,287 13,798,129      1,345,842    10.8%
TOTAL ALL SOURCES                16,795,513 17,057,613 18,299,500      1,241,887     7.3%




Page 132                                                  City Of Bellingham, Washington
                                                                    2006 Adopted Budget
                                                                            Police Department


Departmental Budget Summary


                                        2004        2005         2006        Change from 2005
    Expenditures by Group
                                       Actual      Adopted      Budget      Amount      Percent


Police Administration                 3,058,219    3,055,130    3,446,253     391,123      12.8%
Patrol/Traffic Operations             5,934,936    6,085,137    7,099,887   1,014,750      16.7%
Police Special Operations               351,778      336,305      174,720    (161,585)    -48.0%
Police Investigation Operation        2,675,118    2,839,329    2,583,386    (255,943)     -9.0%
Police Off of Prof Responsibil          357,245      387,153      404,759      17,606       4.5%
Police Records Operations               908,389      969,200      998,296      29,096       3.0%
Police Proactive Operations             916,327      952,734    1,028,663      75,929       8.0%
Police Dispatch Operations            2,593,501    2,432,625    2,563,536     130,911       5.4%
TOTAL EXPENSE                        16,795,513   17,057,613   18,299,500   1,241,887       7.3%


                                        2004        2005         2006        Change from 2005
    Expenditures by Type
                                       Actual      Adopted      Budget      Amount      Percent


Salaries and Benefits                11,689,061   12,329,478   13,210,747    881,269        7.1%
Supplies                                526,474      508,744      568,724      59,980      11.8%
Other Services and Charges            1,086,144    1,113,008    1,085,076     (27,932)     -2.5%
Intergovernmental Services              156,757      166,029      161,286      (4,743)     -2.9%
Interfund Charges                     2,341,759    2,601,929    2,914,042    312,113       12.0%
   Subtotal of Operations            15,800,195   16,719,188   17,939,875   1,220,687       7.3%
Capital Outlay                          614,548       30,000       51,000      21,000      70.0%
Interfund Transfers                     380,770      308,425      308,625         200       0.1%
TOTAL EXPENSE                        16,795,513   17,057,613   18,299,500   1,241,887       7.3%


TOTAL PAID STAFF                          156.5        155.7        160.6         4.9        3.1%



Significant Budget Changes

•    Add five new Police Officer positions to help maintain public safety as Bellingham’s
     population increases.
•    The reduction in Other Services and Charges reflects the addition of turnback to the
     departmental budgets.




City Of Bellingham, Washington                                                           Page 133
2006 Adopted Budget
Police Department


Departmental Objectives for 2006


1. The Bellingham Police Department will continue efforts to become compliant with the
   National Incident Based (NIBRS) reporting format by the end of 2006. The formatting
   and programming of our current LongArm records management database system to the
   NIBRS system will permit an automated download of reported criminal and law
   enforcement activity to the State of Washington and the Federal Bureau of Investigation.
   This information currently is tallied and searched manually.
2. In an effort to combat the increase in criminal gang activity in the City of Bellingham, the
   Bellingham Police Department will be employing directed patrol activity and participate
   in the formation of a multi-jurisdiction and multi-disciplinary task force to address the
   increasing violence related to gangs. This increase in gang presence has been
   observed as a national trend.
3. The Bellingham – Whatcom County Commission Against Domestic Violence submitted a
   grant to the Department of Justice in 2005. The grant was awarded and the City of
   Bellingham is the governmental agency receiving the grant funding. The Bellingham
   Police Department will participate in the grant to enhance enforcement, arrest and
   prosecution efforts for domestic violence cases.
4. The Bellingham Police Department will continue efforts to automate systems that are
   now labor intensive and done manually, such as integration of our training request
   process and the automation of the Records Bureau retention and destruction schedules.
5. The Bellingham Police Department will continue efforts to address the devastating
   affects of methamphetamine use, distribution and sale in the jurisdiction.
6. The Bellingham Police Department will begin to establish policy development and
   training for employees based on a risk management concept. This emerging
   methodology for policy development and training has been a two year effort on the part
   of law enforcement agencies statewide and is endorsed by the Washington Association
   of Sheriffs and Police Chiefs. The Bellingham Police Department took a lead position
   on this issue two years ago, and those efforts have been realized.
7. Study the efficiencies of, and implement, an electronic citation system for officers
   through the state wireless network.
8. Study the system by which we prioritize calls for service. Additionally, we will be
   assessing our responses in our defined geographical patrol areas for efficiency and
   equitable distribution of calls for service among our uniformed patrol personnel.
9. Continue to look for areas we can improve our service delivery and efficiency.




Page 134                                                   City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                                                         Police Department


2005 Objectives with Accomplishments

1. Research funding sources and options for LongArm (police incident database)
   programming changes and formatting to be compatible with the National Incident Based
   Reporting System.

   Completed Phase I of the conversion of the (LongArm) records management system
   formatting to be compatible with the National Incident Based Reporting System (NIBRS).
   This project, when completed, will improve the accuracy of our criminal statistical
   reporting and enhance our query capabilities. This phase of the project was completed
   approximately 60% under budget.

2. Continue restructuring the Police Department to meet the needs of the community, while
   taking into consideration the impacts of the increasing demands for service at the
   operational level.

   The Bellingham Police Department, in cooperation with Human Resources, conducted a
   study of our staffing needs for the next five years. The attrition rate of the police
   department is likely to be 10% of the workforce each year of the five-year period. This
   study revealed the need for staffing adjustments in the training unit.

3. Assess the operational results of a database tracking program in the Police Department
   Records Bureau, tracking documents requested through the Public Disclosure Laws.

   Completed the first full year with our new electronic (LongArm) public disclosure system
   in which we were able to reduce the manual workload and track exactly how many
   disseminations were made to the public and law enforcement agencies. We processed
   6,111 requests for cases.

Additional Accomplishments:

   Entered and maintained 1,383 protection orders, 1,600 trespasses, 4,340 warrants,
   15,277 citations, and scanned approximately 81,900 documents to our case files. We
   performed an audit of all validation files (stolen vehicles, missing persons, stolen
   articles, protection orders, stolen guns, wanted persons) and created new procedures
   and tasks for entering, clearing, and retaining for re-entry or destruction.

   The Bellingham Police Department completed the closed circuit camera system work in
   the Central Business District. We have explored options to access (with consent)
   privately owned security camera systems in our local businesses.

   The Bellingham Police Department concluded a ten-year intelligence operation on the
   criminal activities of an outlaw motorcycle gang. This investigation resulted in the arrest
   of nineteen top conspirators in a criminal enterprise based in Whatcom County.
   Racketeering charges were brought against nine of the nineteen.




City Of Bellingham, Washington                                                      Page 135
2006 Adopted Budget
Police Department


2005 Objectives with Accomplishments (continued)

  The Bellingham Police Department completed the first year of ‘Verified Response’ to
  alarms, which resulted in a 72% reduction in our personnel responding to false alarms,
  without an increase in residential or commercial burglaries.

  We have reduced the number and severity of on-duty injuries to our uniformed officers
  as a result of the acquisition, training and implementation of electro muscular disruption
  technology. This technology reduces the number of incidents where uniformed
  personnel are required to make physical contact with combative people.

  The Bellingham Police Department worked on the development of a domestic violence
  response policy as required by the State legislature, and submitted that policy as
  required. Additionally, we have instituted a set of risk assessment questions in our
  procedures when dealing with domestic violence incidents. In collaboration with the
  Commission Against Domestic Violence, secured a grant from the federal government
  (approx. $400,000) to train agencies in Whatcom County and to enhance arrests for
  domestic violence.




Page 136                                                 City Of Bellingham, Washington
                                                                   2006 Adopted Budget
                                                                                       Police Department


Performance/Activity Measures

In the “05 Met” column, gray indicates that the 2005 Target is an estimate of activity only
and white indicates that the 2005 Target is a performance goal. If the white box is checked,
the goal was achieved.

  Performance /                        2003        2004          2005          2005       05         2006
  Activity Measure                    Actual      Actual        Target        Actual      Met       Target


Administration
Total Employees                          162.2        156.5         158.0         155.7                160.6
Administrative Staff as a
Percent of Dept. Employees               3.1%          3.2%          3.2%          3.2%                3.1%

Patrol
Calls for Service*                      67,390       69,533        65,000        65,211               67,819
Calls per Patrol Officer **              1,140        1,140         1,065         1,069                1,094

  *2005 reduction reflects elimination of response to alarms and to traffic collisions on private property.
  *Calls for service = the number of incidents generated by the CAD system at the 911 Center for City
  law enforcement response.
  **Traffic officers not included.

Investigation
Cases Assigned per Detective               214          187           145           147                  153
Cost to Investigate Each Case     $       423 $        556 $         697 $         690          $       709
Cases Assigned for Follow-Up             2,143        1,871         1,600         1,617                1,682

Records
Events*                           27,452       59,630       57,933               55,492               57,721
Events per Records Clerk           4,788        5,097        5,266                4,825                5,018
 *Events = the number of case numbers assigned to CAD incidents.

Pro-Active
Block Watch Meetings                        37           46            52            35                   40
Volunteer Hours                          6,870        6,315         4,300         6,426                6,500

Dispatch
CAD Incidents*                    125,544      128,089     132,444       126,709             131,777
CAD Incidents per Dispatcher         5,458        5,569       5,758        5,509               5,729
 *CAD Incidents = the number of incidents generated by CAD system at the 911 Center for all County
 law enforcement agencies.




City Of Bellingham, Washington                                                                      Page 137
2006 Adopted Budget
Police Department




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Page 138                                       City Of Bellingham, Washington
                                                         2006 Adopted Budget
                                                Judicial and Support Services Department


        JUDICIAL AND SUPPORT SERVICES DEPARTMENT


           MUNICIPAL COURT
                                                                   MAYOR
                JUDGE


                                     ADMINISTRATION




                                                             CITY-WIDE SUPPORT
           COURT SERVICES
                                                                  SERVICES



                                                      RECORDS                MAIL &
        COURT           PARKING
                                                     MANAGEMENT            MESSENGER



                                                              MICROFILMING &
              COMPLIANCE
                                                             IMAGING/COPIERS



                                Departmental Mission

                                       Municipal Court
Administer the operations of the judicial branch of City government in a neutral and effective
                   manner and ensure access to justice for all citizens.

                                       Support Services
Provide efficient internal mail and records management services, including citizen access to
                                        public records.




Description of Services

The Judicial & Support Services Department includes the City’s Municipal Court and
support services for all City operations. Municipal Court has jurisdiction over criminal,
traffic, parking, and civil matters, which arise from violation of municipal ordinances.

Support Services provides records management, micrographic, imaging, and mail-
messenger services for all City departments. This division coordinates all public disclosure
requests.




City Of Bellingham, Washington                                                       Page 139
2006 Adopted Budget
Judicial and Support Services Department


Departmental Budget Summary


    Revenues, Resources and Fund        2004       2005          2006         Change from 2005
    Reserve Impact by Type             Actual     Adopted       Budget       Amount      Percent


Revenues
Charges for Services                    484,789     585,018      425,703    (159,315)       -27.2%
Fines and Forfeits                    1,393,710   1,423,470    1,330,000     (93,470)         -6.6%
Miscellaneous                            13,193       6,500       14,050       7,550        116.2%
Other Financing Sources                     128           0            0           0             --
  Subtotal of Revenues                1,891,820   2,014,988    1,769,753    (245,235)        -12.2%
Adjustments to Fund Reserves
General                               1,058,991   1,575,741    1,446,524    (129,217)         -8.2%
1st 1/4% Real Estate Excise Tax               0           0    1,600,000   1,600,000             --
  Subtotal Reserve Adjustments        1,058,991   1,575,741    3,046,524   1,470,783          93.3%
TOTAL ALL SOURCES                     2,950,811   3,590,729    4,816,277   1,225,548          34.1%



                                        2004       2005          2006         Change from 2005
    Expenditures by Group
                                       Actual     Adopted       Budget       Amount      Percent


Municipal Court Services              2,559,853   3,160,172    4,429,685   1,269,513         40.2%
J and SS Mail/Records/Copy/Micro        390,958     430,557      386,592     (43,965)       -10.2%
TOTAL EXPENSE                         2,950,811   3,590,729    4,816,277   1,225,548         34.1%


                                        2004       2005          2006         Change from 2005
    Expenditures by Type
                                       Actual     Adopted       Budget       Amount      Percent


Salaries and Benefits                 1,108,456   1,175,166    1,211,861      36,695          3.1%
Supplies                                 38,293      60,796       51,895      (8,901)       -14.6%
Other Services and Charges              486,894     578,050      249,337    (328,713)       -56.9%
Intergovernmental Services            1,181,412   1,611,560    3,156,905   1,545,345         95.9%
Interfund Charges                       135,756     156,207      146,279      (9,928)        -6.4%
   Subtotal of Operations             2,950,811   3,581,779    4,816,277   1,234,498         34.5%
Capital Outlay                                0       8,950            0      (8,950)      -100.0%
TOTAL EXPENSE                         2,950,811   3,590,729    4,816,277   1,225,548         34.1%


TOTAL PAID STAFF                           18.8        18.8         18.8         0.0           0.0%



Significant Budget Changes

•    Miscellaneous Revenues was adjusted because this was under-budgeted in 2005.
•    The reduction in Other Services and Charges reflects the addition of turnback to the
     departmental budgets.




Page 140                                                      City Of Bellingham, Washington
                                                                        2006 Adopted Budget
                                                 Judicial and Support Services Department


Significant Budget Changes (continued)

•   The Municipal Court Services and Intergovernmental Services expenditure lines include
    an anticipated one-time capital investment of $1,600,000 of Real Estate Excise Tax
    funds for an interlocal agreement with Whatcom County to share in construction costs of
    the interim regional jail facility. In exchange, the City will receive a specified portion of
    the capacity within the facility for the housing of City of Bellingham inmates and an
    annual credit toward the City’s jail bill for the next seven years.


Departmental Objectives for 2006

1. Continue Court Division outreach and education programs such as Law Day and
   volunteer courtesy calls. (Council Goal 8)
2. Continue work on the Court Division’s website by adding forms, procedural information,
   and links. (Council Goal 8)
3. The Court Division will establish benchmarks for four performance measures published
   by the National Center for the State Courts:
    a) Clearance Rates: The number of outgoing cases as a percentage of the number of
       incoming cases.
    b) Time to Disposition: The percentage of cases disposed or otherwise resolved within
       specific time frames.
    c) Age of Active Pending Caseload: The age of the active case pending before the
       court, measured as the number of days from filing until the time of measurement.
    d) Cost Per Case: The average cost of processing a single case, by case type.


2005 Objectives with Accomplishments

1. Establish a court calendar dedicated to Domestic Violence related cases. Develop
   statistics on the number and types of cases processed and survey the participants.
   (Council Goal 8)

    The domestic violence calendar completed its first full year of operation in 2005. This
    specialized calendar processed 1,732 hearings. A coordinated service delivery by all
    system providers (prosecutor, public defender, victim advocate and probation officers)
    as well as the court’s courtesy call program contributed to a failure to appear rate of less
    than 10%. With a benchmark year of statistics to utilize, Court staff will begin working
    on the design of a satisfaction survey for all participants.




City Of Bellingham, Washington                                                         Page 141
2006 Adopted Budget
Judicial and Support Services Department


2005 Objectives with Accomplishments (continued)

2. Enhance the Volunteer Call List Program (court hearing reminders). Track attendance
   statistics. (Council Goal 8)

   The program expanded to five days per week, and to include all civil and criminal
   calendars. The court continues to experience civil traffic calendars with 100%
   attendance, thus saving time and money for the City and users of the system. The court
   receives many favorable comments from citizens thankful for the friendly reminder.

3. Add the Public Disclosure Request form to the City website. Support on-line requests
   for public records. Track the number of requests and survey for satisfaction. (Council
   Goal 8)

   The Public Disclosure Request form was added to the City website in March 2005. To
   date, the number of individuals accessing the form has been low. In 2006, efforts will
   focus on building awareness of the form and promoting its use.




Page 142                                                 City Of Bellingham, Washington
                                                                   2006 Adopted Budget
                                                         Judicial and Support Services Department


Performance/Activity Measures

In the “05 Met” column, gray indicates that the 2005 Target is an estimate of activity only
and white indicates that the 2005 Target is a performance goal. If the white box is checked,
the goal was achieved.

  Performance /                        2003          2004          2005           2005       05        2006
  Activity Measure                    Actual        Actual        Target         Actual      Met      Target


Municipal Court Services Group
REVENUE-COURT DIVISION FINES
 Parking                     $ 472,963 $ 433,869 $ 450,000 $ 449,387                               $ 450,000
 Citation                    $ 1,213,666 $ 1,281,853 $ 1,147,000 $ 1,227,383                       $ 1,180,000
Total Revenue                $ 1,686,629 $ 1,715,722 $ 1,597,000 $ 1,676,770                       $ 1,630,000
WORKLOAD
 Parking Tickets                 49,000      47,633      48,000      50,562                             40,000
 Traffic Infractions             10,444      10,139       9,500      10,862                              9,000
 Non-Traffic Infractions            599         693         700         736                                700
 Criminal Traffic Violations      1,268         755         500         530                                400
 Non-Traffic Criminal
 Violations                       2,633       3,000       3,100       2,764                              3,100
 Jury Trials Set                    312         368         390         479                                400
 Jury Trials Held                      6           6           8          11                                 8
 Driving Under the Influence
 Cases                              282         260         270         258                                270

Note: Criminal traffic fines, probation fees, and filings continue to be adversely impacted by the ruling in the
Washington Supreme Court decision, City of Redmond v Moore. Traffic infraction filings and revenue adversely
impacted by the vacancy of 1 FTE for 4th Quarter 2005, and 2 FTE's for 1st Quarter 2006 in the Bellingham Police
Department Traffic Division. 2006 Parking tickets impacted by fine increases effective January 2006.


Internal Services Group
RECORDS CENTER
Growth in Cubic Feet
 Destruction                               634           742            600          1,266                 700
 Accessions                                896           698            810            953                 950
 Total Holdings                          4,382         4,422          4,608          4,333               4,807
Checkout and Reference
Requests                                   831            524           528            728                 550




City Of Bellingham, Washington                                                                       Page 143
2006 Adopted Budget
Judicial and Support Services Department




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Page 144                                         City Of Bellingham, Washington
                                                           2006 Adopted Budget
                                                       Parks and Recreation Department


               PARKS AND RECREATION DEPARTMENT


      ADVISORY
                                           ADMINISTRATION
       BOARD



       CITIZEN                PARK                 DESIGN AND
                                                                          RECREATION
     COMMITTEES            OPERATIONS             DEVELOPMENT



                       OPERATIONS-            PLANNING AND           ENRICHMENT
                        GROUNDS                  DESIGN              AND SPORTS

                       OPERATIONS-               CAPITAL
                                                                       AQUATICS
                        BUILDINGS             IMPROVEMENT

                                                PROPERTY
                        CEMETERY
                                               ACQUISITION


                           GOLF




                               Departmental Mission

   Support a healthy community by providing high quality parks and recreation services.




Description of Services

Provide park planning, land acquisition, and design and construction of parks and recreation
facilities to meet the demands of a growing community.

Maintain and operate community recreation assets including:
   • Neighborhood and community parks.
   • Park facilities: Bloedel Donovan Multi-Purpose Facility, Civic Athletic Complex, and
       a variety of athletic fields and courts.
   • Enterprise operations including Lake Padden Golf Course and Bayview Cemetery.
   • Multi-modal trail system.
   • Open space, natural areas and greenways.

Provide a comprehensive, year-round recreation program.




City Of Bellingham, Washington                                                    Page 145
2006 Adopted Budget
Parks and Recreation Department


Departmental Budget Summary


 Revenues, Resources and Fund        2004        2005           2006          Change from 2005
 Reserve Impact by Type             Actual      Adopted        Budget        Amount      Percent


Revenues
Taxes                              2,709,169     1,622,449    1,714,980         92,531        5.7%
Intergovernmental                    600,225     1,527,000      800,000       (727,000)    -47.6%
Charges for Services               2,159,145     2,320,262    2,585,871        265,609      11.4%
Fines and Forfeits                        50             0           50             50          --
Miscellaneous                        568,845       398,746      454,416         55,670      14.0%
Other Financing Sources           10,555,153     8,462,257    1,852,935     (6,609,322)    -78.1%
  Subtotal of Revenues            16,592,587    14,330,714    7,408,252     (6,922,462)     -48.3%
Adjustments to Fund Reserves
General                            4,123,803     4,431,939     4,431,881           (58)       0.0%
Parksite Acquisition                 (32,518)       71,800        (2,518)      (74,318)   -103.5%
Capital Maint                        266,893        55,000       105,800        50,800      92.4%
Squalicum Park/Olympic                70,004       (13,000)      (24,384)      (11,384)     87.6%
1st 1/4% Real Estate Excise Tax      589,685       870,000     1,002,000       132,000      15.2%
2nd 1/4% Real Estate Excise Tax      270,166       430,000     1,400,500       970,500     225.7%
Greenways                             55,642             0             0             0          --
Beyond Greenways                   1,794,412       291,113       (22,548)     (313,661)   -107.7%
Sportsplex                            (2,798)         (375)       (2,183)       (1,808)    482.1%
Sportsplex Acquistion Debt            (7,410)            0             0             0          --
Civic Field Improvement           (5,527,555)     (271,802)            0       271,802    -100.0%
Cemetery                             (37,875)       34,279        27,704        (6,575)    -19.2%
Golf Course                          (36,042)      (20,861)      (31,367)      (10,506)     50.4%
Beyond Greenways Endowment          (290,587)     (159,106)     (200,372)      (41,266)     25.9%
  Subtotal Reserve Adjustments     1,235,820     5,718,987     6,684,513       965,526       16.9%
TOTAL ALL SOURCES                 17,828,407    20,049,701    14,092,765    (5,956,936)     -29.7%




Page 146                                               City Of Bellingham, Washington
                                                                 2006 Adopted Budget
                                                         Parks and Recreation Department


Departmental Budget Summary (continued)


                                         2004         2005         2006         Change from 2005
    Expenditures by Group
                                        Actual       Adopted      Budget       Amount      Percent


Parks and Recreation Admin                405,690      480,472      453,126       (27,346)     -5.7%
Parks Operations Management               304,221      320,165      344,035        23,870       7.5%
Parks Grounds                           1,097,984    1,192,586    1,245,687        53,101       4.5%
Parks Buildings                         1,235,137    1,392,368    1,738,240       345,872     24.8%
Parks Cemetery                            482,402      493,479      636,023       142,544     28.9%
Parks Golf Course                         724,773      786,374      792,790         6,416       0.8%
Recreation Management                   4,559,516      210,973      243,244        32,271     15.3%
Recreation Environment                     93,311            0            0             0         --
Recreation Aquatics                       961,633      981,857    1,028,210        46,353       4.7%
Sports and Enrichment                   1,252,876    1,386,269    1,284,722      (101,547)     -7.3%
Parks Design & Development                249,642      271,813      299,379        27,566     10.1%
Parks Capital Improvement               6,461,222   12,533,345    6,027,309   (6,506,036)    -51.9%
TOTAL EXPENSE                          17,828,407   20,049,701   14,092,765    (5,956,936)    -29.7%


                                         2004         2005         2006         Change from 2005
    Expenditures by Type
                                        Actual       Adopted      Budget       Amount      Percent


Salaries and Benefits                  4,266,021     4,559,564    4,827,369      267,805        5.9%
Supplies                                 440,128       554,285      538,494      (15,791)      -2.8%
Other Services and Charges             1,653,977     1,694,539    1,530,200     (164,339)      -9.7%
Intergovernmental Services               108,713       112,060      114,609        2,549        2.3%
Interfund Charges                        648,855       671,188      746,889       75,701      11.3%
    Subtotal of Operations             7,117,694     7,591,636    7,757,561      165,925        2.2%
Debt Service                               1,292        81,351       85,649        4,298        5.3%
Capital Outlay                        10,709,421    12,076,714    5,849,555   (6,227,159)    -51.6%
Interfund Transfers                            0       300,000      400,000      100,000      33.3%
TOTAL EXPENSE                         17,828,407    20,049,701   14,092,765   (5,956,936)     -29.7%


TOTAL PAID STAFF                             95.5         96.3         99.5           3.2       3.3%



Significant Budget Changes

•    Decrease in Other Financing Sources reflects actual 2006 scheduled Transfers In.
•    Increase the hours of part-time parks maintenance staff by an amount equivalent to 1.7
     FTEs.
•    Add a Parks Project Engineer to oversee, coordinate and complete work associated with
     the numerous park development projects the City is undertaking.




City Of Bellingham, Washington                                                       Page 147
2006 Adopted Budget
Parks and Recreation Department


Significant Budget Changes (continued)

•   Add a part-time Office Assistant in Operations to assist the Cemetery and Golf Course
    with administrative duties. The Cemetery and Golf Course will pay for this service
    through interfund charges.
•   Parks Design and Development and Capital Improvements decreased to adjust for
    completed projects.


Departmental Objectives for 2006

1. Acquire a neighborhood park in north Bellingham. (Council Goals 3 and 6)
2. Work cooperatively with a citizens’ organization for the purpose of developing a new
   Greenways Levy. (Council Goals 3, 5 and 6)
3. Begin construction of Phase I of Squalicum Creek Park. (Council Goals 3 and 5)
4. Continue playground replacement program to provide safe, universally accessible play
   areas at Franklin and Carl Lobe Parks. (Council Goals 3 and 5)
5. Begin construction of redesigned Civic Athletic Complex Improvement Project. (Council
   Goals 3 and 5)
6. Resurface track at Civic Field Stadium. (Council Goals 3 and 5)
7. Construct new storage building at Joe Martin Field.
8. Continue acquisition of property in the Beyond Greenways program. (Council Goal 6)
9. Complete design and begin construction of Whatcom Creek Trail from Racine Street to
   Ellis. (Council Goal 4)
10. Construct a new restroom at Whatcom Falls Park. (Council Goals 3 and 5)
11. Design trail connection from Big Rock Garden to Klipsun Trail and Northridge Park.
    (Council Goal 4)
12. Develop a trail plan for north Bellingham. (Council Goal 6)
13. Complete construction of the Coast Millennium Trail Improvements at Squalicum Creek
    Greenway. (Council Goal 4 )
14. Complete Phase II construction of Taylor Dock, including gateway entry, dock shelter,
    transient moorage dock, uplands restroom, landscaping and street improvements.
    (Council Goals 3, 4 and 5)
15. Complete construction of Whatcom Creek Trail connection to Civic Athletic Complex.
    (Council Goal 4)
16. Assist Community Development with plans to improve Old Village Trail. (Council
    Goal 4)
17. Assist Community Development with project management of Happy Valley Park
    Improvements. (Council Goals 3 and 5)



Page 148                                                  City Of Bellingham, Washington
                                                                    2006 Adopted Budget
                                                         Parks and Recreation Department


Departmental Objectives for 2006 (continued)

18. Continue trailhead wayfinding sign installation. (Council Goal 3)
19. Work with Public Works in the integration of parkland inventory, work order and time
    reporting system into upgraded or new maintenance management system. (Council
    Goal 5)
20. Continue to extract service data from time reporting system to assist in determining
    service hours for specific tasks and locations.
21. Expand the areas of non-irrigated turf grass in an effort to reduce utility and
    maintenance costs while updating automated irrigation systems in high use areas to
    reduce manual irrigation labor hours.
22. Work with other City departments to limit the City’s liabilities and maintenance
    responsibility in open space and wetland areas.
23. Continue annual review of facilities and structures to establish capital maintenance
    repair and replacement schedules. (Council Goals 3 and 5)
24. Continue implementation of capital maintenance projects with a goal of reducing
    maintenance and improving service. (Council Goals 3 and 5)
25. Implement the reorganization plan for recreation services.
26. Evaluate the existing “dog off-leash” policy, modify areas as needed, install additional
    signage and pursue enforcement in an effort to reduce the number of off-leash
    violations.
27. Continue to explore alternative funding sources for recreation programs in an effort to
    reduce costs.
28. Evaluate all recreation programs to determine a value hierarchy in meeting community
    priority needs.
29. Continue to identify inefficiencies in the provision of recreation services and implement
    plans to eliminate them.




City Of Bellingham, Washington                                                         Page 149
2006 Adopted Budget
Parks and Recreation Department


2005 Objectives with Accomplishments

1. Implement 2005 budget reduction measures and ensure smooth transition of those
   services assumed by other City Departments.

   Lifeguards were eliminated at outdoor beaches, the Environmental Program was
   transferred to Public Works (non-General Fund supported), staffing for the City Arts
   Commission was eliminated (transitioned to Community Development) and staff support
   to the Big Rock Garden Committee was reduced. In addition, recreational staff support
   to many local events was significantly reduced. The groundwork was laid for a complete
   reorganization of the Recreation Division which became effective in 2006.

2. Complete Employee Performance Appraisal program for all divisions.

   Performance evaluations were completed for most employees and efforts will be made
   to expand the program in 2006.

3. Continue the establishment of “work groups” to address sensitive department issues.

   Additional work groups were not warranted in 2005.

4. Begin construction of Civic Complex improvements including Civic Stadium
   improvements, parking lot reconstruction and improvements at Joe Martin Field.
   (Council Goals 3 and 5)

   After the initial bids came in over budget, the project was redesigned based on
   recommendations of a value engineering study and constructability review. The project
   was re-bid in December and came in under the engineer’s estimate. Asbestos
   abatement has been completed and the majority of construction will take place in 2006.
   The Skatepark expansion, Joe Martin turf, and signage and wayfinding will be bid
   separately later in 2006.

5. Propose a slate of projects for the establishment of a new Greenways Levy. (Council
   Goals 3 and 5)

   In September, the Greenway Advisory Committee presented to City Council a listing of
   recommendations entitled “Future Trail Corridors, Parks and Community Forests”.
   Throughout the summer department staff worked closely with the Greenways 2006 levy
   proponents in compiling their proposal.

6. Complete design and bid of Phase II Taylor Dock including a transient moorage dock,
   picnic pavilion and upland support facilities. (Council Goals 3 and 5)

   Project was bid and construction began in October and is scheduled for completion in
   July 2006.




Page 150                                                City Of Bellingham, Washington
                                                                  2006 Adopted Budget
                                                          Parks and Recreation Department


2005 Objectives with Accomplishments (continued)

7. Identify opportunities for neighborhood parkland acquisition utilizing subdivision fees.
   (Council Goal 6)

   Staff investigated several sites. Funding is available in 2006 to purchase parkland in
   north Bellingham.

8. Continue playground replacement program to provide safe, universally accessible play
   areas. (Council Goal 3)

   Whatcom Falls Park upper playground was replaced. Design was completed for
   playground replacements at Padden, Broadway and Civic. These will be installed in
   spring/summer 2006.

9. Complete Phase I construction of the Coast Millennium Trail improvements at
   Chuckanut /Arroyo and Squalicum areas.

   Project was completed on time and under budget.

10. Continue acquisition of property in the Beyond Greenways Program.

   Two key easements for the Whatcom Creek Trail were acquired. Several other parcels
   were negotiated and will close in 2006. Work continues on acquisition for the Bay to
   Baker Trail.

11. Install trailhead signs at major trail entries for Whatcom Creek Trail, Railroad Trail,
    Interurban Trail, South Bay Trail and Bay to Baker Trail. (Council Goal 3)

   Trailhead signs and locations are being determined. 2005 funds will be combined with
   2006 funds for one installation project.

12. Design Phase II of Northridge Park trail system with connections to Squalicum High
    School. (Council Goal 3)

   Phase I trail was completed. Phase II design was deferred to 2006.

13. Integrate parkland inventory, work order and time reporting system into the new
    maintenance/management system.

   Project on-hold as there may be a shift from Public Works reliance on the current
   maintenance/management system.




City Of Bellingham, Washington                                                         Page 151
2006 Adopted Budget
Parks and Recreation Department


2005 Objectives with Accomplishments (continued)

14. Evaluate the existing “dog off-leash” policy, modify areas as needed, install additional
    signage, and pursue enforcement in an effort to reduce the number of off-leash
    violations.

   Policy revision planned for early 2006. Additional signage is being prepared and will be
   installed following policy adoption.

15. Establish a “mode classification system” for the maintenance of parks, trails and open
    spaces and limit maintenance and site carrying capacities to specified limits.

   Project on hold pending utilization of maintenance/management system.

16. Extract service data from time reporting system to determine actual maintenance costs
    for specific tasks and locations.

   Project on hold pending utilization of maintenance/management system.

17. Continue automation of irrigation systems to reduce manual irrigation labor hours and
    water consumption.

   Irrigation systems located in community parks have been automated and any new
   installations are automated. In an effort to conserve water, many of the automated
   systems have been shut down.

18. Reroute and redevelop trails at Arroyo and Lake Padden Parks to improve safety,
    circulation and drainage.

   Lake Padden Park will be resurfaced in January 2006.

19. Update capital maintenance repair and replacement schedules.

   Completed.

20. Explore alternative funding sources for recreation programs.

   Successfully recruited additional sponsors for some events and user fees were
   increased for other events.

21. Establish criteria and evaluate all recreation programs to determine a value hierarchy.

   Completed in spring 2005. Program evaluation resulted in complete Recreation Division
   reorganization.




Page 152                                                   City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                                        Parks and Recreation Department


2005 Objectives with Accomplishments (continued)

22. Evaluate user-fees, including non-resident fees, for all recreation programs and
    recommend appropriate increases.

   All user fees were evaluated and will continue to be evaluated on a quarterly basis. The
   decision was made not to initiate non-resident fees.

23. Complete Phase I design of Squalicum Fields Park.

   Phase I design is complete and the project will be bid in spring of 2006.

Additional Accomplishments:

   Reorganized Recreation Division by combining the Sports and Enrichment Groups.
   Civic Complex maintenance was also transferred from Park Operations to the
   Recreation Division. This measure reduces full time staffing by 1.0 FTE and saves
   approximately $100,000 annually in General Fund dollars.

   Completed roof replacements at Whatcom Falls shelter and Big Rock Garden
   buildings/shelter.

   Completed improvement of Sunset Pond Park.

   Completed significant improvements to the Bayview Cemetery Mausoleum.

   Completed entrance and paving improvements at Lake Padden Park- East Entrance.

   Completed Boulevard Park trail realignment and landscape renovations

   Completed new trailhead parking and trail connection on Marine Drive for Little
   Squalicum Park.

   Applied for and received the number one ranking for a $500,000 transportation
   enhancement grant for Whatcom Creek Trail, Racine to Ellis.

   Completed design of Happy Valley Neighborhood Park Improvements, which is funded
   with Community Development Block Grant funds. Construction will occur in 2006.

   Completed the Birchwood Park picnic shelter.

   Continued the Brownfields study at Little Squalicum Park. Additional funds for testing
   and mitigation were granted by EPA and Department of Ecology.

   The Planning Commission held a public hearing on a park impact fee ordinance and
   recommended approval by the City Council. The ordinance will go before Council early
   in 2006.



City Of Bellingham, Washington                                                       Page 153
2006 Adopted Budget
Parks and Recreation Department


2005 Objectives with Accomplishments (continued)

   The City Council held a public hearing and worksession on the Park, Recreation, and
   Open Space component of the Comprehensive Plan. Approval is anticipated early in
   2006


Performance/Activity Measures

In the “05 Met” column, gray indicates that the 2005 Target is an estimate of activity only
and white indicates that the 2005 Target is a performance goal. If the white box is checked,
the goal was achieved.

  Performance /                     2003       2004           2005      2005       05         2006
  Activity Measure                 Actual     Actual         Target    Actual      Met       Target


Golf Course Operations Group
Rounds of Walk-In Play      40,927              40,136      38,745          *n/a            40,915
Rounds of Pre-Paid Play      5,616               7,404       6,766          *n/a             5,836
   Total                    46,543              47,540      45,511          *n/a            46,751
Total Green Fee Revenue  $ 732,388           $ 754,501   $ 713,212          *n/a         $ 817,783

Cemetery Services Group
Grave Sales                    $    66,880   $ 93,615    $    78,000        *n/a         $    81,000
Internment Sales               $    44,042   $ 48,529    $    45,000        *n/a         $    47,000
Monuments and Other Sales      $    87,239   $ 107,011   $    93,000        *n/a         $    95,000
Other Services                 $     5,571   $   1,396   $     1,000        *n/a         $     1,000

Capital Improvements Group
PARKS CAPITAL IMPROVEMENTS FUNDING SOURCES BY YEAR
General Fund                  $     49,929 $     21,738 $          -        *n/a         $         -
Levy/Bond                     $ 2,426,775 $ 5,204,952 $ 1,850,814           *n/a         $ 6,677,077
Grants/Other                  $ 748,841 $ 660,770 $ 1,440,212               *n/a         $ 974,400
Real Estate Excise Tax Fund   $ 382,830 $ 890,786 $ 2,217,350               *n/a         $ 1,510,480
GREENWAY LEVY ACQUISITION - SOURCE DOLLARS SPENT
Donations                     $ 682,652 $         3,000 $          -        *n/a         $          -
Levy/Other                    $ 1,105,148 $ 2,407,419 $ 200,000             *n/a         $    600,000
Grant/Match                   $ 500,000 $ 600,000 $                -        *n/a         $          -
GREENWAY LEVY ACQUISITION - ACRES ACQUIRED
Acres per Year                          67           16          10           10                   20
No of Parcels                             6           3            2           1                    2
Cumulative Acres                       483          499         509          510                  529
  Cumulative acres have been corrected since reassesment of property was completed.

*Not yet available.




Page 154                                                        City Of Bellingham, Washington
                                                                          2006 Adopted Budget
                                                              Parks and Recreation Department


Performance/Activity Measures (continued)


 Performance /                     2003         2004          2005         2005      05         2006
 Activity Measure                 Actual       Actual        Target       Actual     Met       Target

On this page only, numbers listed as "Actuals" are estimates by the Parks & Recreation Dept.

Aquatics Group
Lesson Participants                  1,460        1,500        1,600         1,750               1,600
Open Swim Attendance               112,300      100,000      105,000       109,000             105,000

Sports and Enrichment Group
Youth Teams                         235              320          120          132                 120
Youth Participants                4,150            3,300        2,800        2,550               2,800
Adult Teams                         400              400          400          360                 400
Adult Participants                4,800            4,800        5,200        4,600               5,200
Athletic Field Reservations       1,550            1,400        1,500        1,350               1,100
Participants for youth day-
camps, trips, classes, concerts,
and other activities              3,150            3,200        3,200        3,336               2,800
Participants for adult/family
trips, classes, concerts, and
other activities                 35,000          37,000        60,000       49,570              60,000
Participants from special
populations for segregated and
integrated activities               580             550           600          932                 600
Provide supervision at park
and school facilities for
reservations                      1,600            1,600        1,600        1,550               1,600




City Of Bellingham, Washington                                                                 Page 155
2006 Adopted Budget
Parks and Recreation Department




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Page 156                                         City Of Bellingham, Washington
                                                           2006 Adopted Budget
                                                                     Library Department


                            LIBRARY DEPARTMENT



                                                                        MAYOR
                                          BOARD OF
                                          TRUSTEES

                                                                     CITY COUNCIL

                                    LIBRARY DIRECTOR




                  PUBLIC
                                                            SUPPORT SERVICES
                 SERVICES



   CIRCULATION              INFORMATION            COLLECTION                NETWORK
     SERVICES                 SERVICES            DEVELOPMENT                SERVICES




                              Departmental Mission

  Bellingham Public Library shares the power of information, encourages the discovery of
  ideas, and promotes the joy of reading with all members of the Bellingham Community.




City Of Bellingham, Washington                                                  Page 157
2006 Adopted Budget
Library Department


Description of Services

The Bellingham Public Library serves as the community’s primary information center and
offers these core services in support of its mission. Excellent customer service is a top
priority in implementing each one of these public services which contribute to the quality of
living and learning in Bellingham.

Materials
• Bellingham Public Library holds a collection of library materials and information in a
   variety of print and non-print formats. Examples include books, magazines,
   newspapers, visual and audio materials, and electronic databases. These resources
   are available at the Central Library and the Fairhaven Branch and may also be
   accessed and reserved by customers through the Library’s website:
   www.bellinghampubliclibrary.org.

Access
• Through an interlocal agreement with the Whatcom County Library System (WCLS),
   library materials owned by Bellingham Public Library and WCLS are available to all
   residents through a shared online catalog of materials. Access to other materials and
   resources held by cooperating local and national libraries of all types are available
   electronically or through other cooperative arrangements.

Assistance
• Reader’s advisory and information assistance are provided for customers of all ages, as
   they search for the resources they need to succeed in their personal, work, school, or
   community activities. Computer and database classes, as well as library orientations
   are regularly offered for children and adults.

Programs
• The Library collaborates with other city departments, volunteers, and community
   organizations each year to sponsor or co-sponsor educational and informational
   programs. Programs offered to community members about issues affecting their lives
   connect people with the library resources they need for lifelong enrichment and
   education.

Place
• Bellingham Public Library is an important community center in a city that values reading
   and learning. Community groups use the Library for meetings, educational events, and
   public forums. The Library connects the community together by serving as a neutral,
   welcoming place for citizens to gather, study, discuss, and learn.




Page 158                                                   City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                                                          Library Department


Departmental Budget Summary


  Revenues, Resources and Fund         2004        2005        2006         Change from 2005
  Reserve Impact by Type              Actual      Adopted     Budget       Amount      Percent


Revenues
Intergovernmental                      68,118       72,000     118,000       46,000       63.9%
Charges for Services                   19,880       35,700      24,000      (11,700)     -32.8%
Fines and Forfeits                    110,971      186,000     120,000      (66,000)     -35.5%
Miscellaneous                          68,282       65,220      73,603        8,383       12.9%
  Subtotal of Revenues                267,251      358,920     335,603      (23,317)       -6.5%
Adjustments to Fund Reserves
General                              2,747,283    2,693,602   2,890,003     196,401        7.3%
Library Gift                            (6,705)           0           0           0          --
1st 1/4% Real Estate Excise Tax              0            0     406,250     406,250          --
  Subtotal Reserve Adjustments       2,740,578    2,693,602   3,296,253     602,651       22.4%
TOTAL ALL SOURCES                    3,007,829    3,052,522   3,631,856     579,334       19.0%



                                       2004        2005        2006         Change from 2005
  Expenditures by Group
                                      Actual      Adopted     Budget       Amount      Percent


Library Administration                 481,857      439,252     505,702      66,450       15.1%
Library Services                     2,088,942    2,164,942   2,263,242      98,300        4.5%
Fairhaven Branch Library                77,633       70,851      72,350       1,499        2.1%
Library Facilities                     359,397      377,477     790,562     413,085      109.4%
TOTAL EXPENSE                        3,007,829    3,052,522   3,631,856     579,334       19.0%


                                       2004        2005        2006         Change from 2005
  Expenditures by Type
                                      Actual      Adopted     Budget       Amount      Percent


Salaries and Benefits                1,988,278    2,074,700   2,158,902      84,202        4.1%
Supplies                               457,882      457,745     526,782      69,037       15.1%
Other Services and Charges              63,198       81,106      86,360       5,254        6.5%
Intergovernmental Services                 570        1,051         600        (451)     -42.9%
Interfund Charges                      413,761      437,920     452,962      15,042        3.4%
   Subtotal of Operations            2,923,689    3,052,522   3,225,606     173,084        5.7%
Capital Outlay                          84,140            0     406,250     406,250          --
TOTAL EXPENSE                        3,007,829    3,052,522   3,631,856     579,334       19.0%


TOTAL PAID STAFF                          43.1         43.2        43.2          0.0        0.0%

Note: “Supplies” expenditure includes all library books, materials, and information
resources budgeted at $387,676.




City Of Bellingham, Washington                                                         Page 159
2006 Adopted Budget
Library Department


Significant Budget Changes

•   The increase in Library Facilities is for design costs for a new Library and a structural
    review of the Fairhaven Library Branch.
•   Charges for Services and Fines and Forfeits were both reduced for 2006 to more
    accurately reflect actual revenue history. Charges for Services includes those fees
    which, by law, we can charge: photocopies, internet printing, library use fees for non-
    residents, and a reserve fee for holds not picked up. Fines and Forfeits are overdue
    fines.
•   Approximately half of the increase in Supplies expense is to upgrade 23 staff and public
    computers to City of Bellingham standards. The decrease in Intergovernmental
    expense records expenses paid to Whatcom County Library that were deducted from
    revenue in prior years. Offsetting Intergovernmental revenue also reflects this change.
    This reflects a shift in the way revenue from the Whatcom County Library System is
    accounted for.


Departmental Objectives for 2006

1. Continue developing and implementing the necessary groundwork to build a new central
   library. Ongoing in 2006. (Council Goals 2, 3, 5, 6 and 9)
2. Investigate the need and opportunity to establish a library presence in northeast
   Bellingham and develop a plan by June, 2006. (Council Goals 3, 5, 6, 7 and 9)
3. Implement and evaluate a study of the structural and program needs of the Fairhaven
   Branch Library facility by spring, 2006. (Council Goals 3 and 5)
4. Continue to explore the efficiencies and cost benefits of cooperative efforts with the
   Whatcom County Library System with a plan developed by December, 2006. (Council
   Goals 3 and 6)
5. Implement a project in partnership with the Whatcom Museum, Community
   Development, and Information Technology Services departments to digitize images of
   historic structures in Bellingham that will be accessible over the Internet. Progress is
   dependent upon availability of grant funding to be determined mid-year 2006. (Council
   Goal 3)
6. Develop active partnerships with community organizations in order to provide
   informational, educational, and cultural programs for Bellingham citizens. Programs will
   be scheduled throughout the year. (Council Goals 3, 6, 7 and 9)




Page 160                                                    City Of Bellingham, Washington
                                                                      2006 Adopted Budget
                                                                          Library Department


2005 Objectives with Accomplishments

1. Complete a geo-technical/engineering study of present library location and surrounding
   property to determine feasibility of this site for a new or expanded building. (Council
   Goals 2 and 5)

   Completed. Geo-technical and engineering study was commissioned by Public Works
   and the final report was presented to Library Board on May 10, 2005. Results will be
   used to help inform the decision on site selection for a replacement Central Library
   facility.

2. Select site for new library facility. (Council Goals 2 and 5)

   In process. Library Board is completing a year-long process of evaluating all options for
   a site for a replacement Central Library. Library Board met each month for a planning
   work session. At its December work session, the Board directed City staff to issue an
   RFP for available property, as a final step in narrowing all possibilities. It is anticipated
   that site options will be presented to City Council for their consideration by mid-year.

3. Prepare a preliminary design plan for a new library. (Council Goals 2 and 5)

   In process. Funds for preliminary design work are included in the City’s 2006 budget.

4. Install additional shelving to cope with overflow of materials. (Council Goal 3 and 6)

   Completed. Additional shelving was purchased and installed in August. Funding was
   provided by the City and by the Friends of the Bellingham Public Library.

5. Remodel checkout desks to address ergonomic deficiencies. (Council Goal 3)

   90% complete. Checkout desk changes will be completed in first quarter 2006.
   Components of the project include self pick-up of holds, “Express” checkout equipment,
   and ergonomic work stations, all combined to improve efficiencies and ergonomics.
   These improvements were implemented at the Central Library and Fairhaven, and were
   funded by the City and by the Friends of the Bellingham Public Library.

6. Add another interior book return station to ease traffic congestion at the public service
   counter. (Council Goals 3 and 6)

   Completed 12/05. Part of the remodeling project described in #5, an additional book
   return, was installed when the entire return function was relocated to an area that will
   provide greater efficiencies for the public and staff.




City Of Bellingham, Washington                                                        Page 161
2006 Adopted Budget
Library Department


2005 Objectives with Accomplishments (continued)

7. Investigate a partnership with private business to create a modest library presence in
   northeast Bellingham. (Council Goals 3 and 6)

   In process. Planning work sessions have included discussions about meeting the library
   needs of the northeast area of Bellingham. This objective is carried into 2006.

8. Initiate a study to explore the advantages and disadvantages of consolidating library
   services with the Whatcom County Library System. (Council Goal 3)

   Revised. A formal consolidation study was not initiated in 2005. Instead, Library Board
   members from Bellingham and Whatcom County met together in 2005 to discuss.
   Action in 2006 will include a joint board meeting and a written document outlining all
   areas where the City and the County library systems work together. Possibilities for
   consolidating functions will be discussed throughout the year, and implemented where
   practical.

Additional Accomplishments

   Served as an active member of the planning team and as the Whatcom County
   information provider for implementation of North Sound 2-1-1 service. The only public
   library involved in the 2-1-1 statewide project, Bellingham Public Library’s information
   network is being converted to a new database to serve as baseline information for the
   North Sound 2-1-1 call center headquartered in Everett. The Library has had an active
   staff presence in the implementation of this project throughout 2005. 2-1-1 will “go live”
   in this region in February 2006.

   Worked in partnership with the Museum to apply for grant funding for materials
   digitization. The Library and Museum partnered to apply for $150,000 from the Institute
   for Museum and Library Services in 2005. Results of the grant application will be known
   third quarter, 2006. The grant process resulted in a broader partnership than
   anticipated, including work with Planning, ITSD, Assessor, and other agencies. If
   granted, the project will provide for digitization of materials on historic homes in
   Bellingham neighborhoods.

   Serve as an accessible site for the Deaf community. Working with the Bellingham
   Hearing Speech and Deafness Center and Public Works, the Library now houses a
   videophone for use by the Deaf community. A videophone allows a deaf person
   telephone access to other videophones or access to a video relay service (VRS). A
   VRS allows a deaf person to connect with a sign language interpreter and contact a
   hearing person on a voice telephone. Staff was trained in better serving the Deaf
   community, and in assisting patrons in using the videophone.




Page 162                                                  City Of Bellingham, Washington
                                                                    2006 Adopted Budget
                                                                        Library Department


Performance/Activity Measures

In the “05 Met” column, gray indicates that the 2005 Target is an estimate of activity only
and white indicates that the 2005 Target is a performance goal. If the white box is checked,
the goal was achieved.

  Performance /                 2003        2004        2005        2005       05     2006
  Activity Measure             Actual      Actual      Target      Actual      Met   Target


Library Services and Administration Group
HOLDINGS                    286,043    292,352          293,000     294,367           293,000

CIRCULATION
 Central Library              1,057,973    1,090,441   1,106,000   1,101,749         1,110,000
 Fairhaven Branch                86,934       91,500      93,500      94,049            95,000
 TOTAL                        1,144,907    1,181,941   1,199,500   1,195,798         1,205,000
 Circulation per capita            16.4         16.6        16.6        16.5              16.4

PERSONS VISITING
 Central Library                608,964     625,000     640,000     589,258           600,000
 Fairhaven Branch                62,858      73,000      75,000      74,355            75,000
 TOTAL                          671,822     698,000     715,000     663,613           675,000
 Website Visits                      n/a         n/a         n/a         n/a          150,000

PROGRAMS
 Number of Programs                 349         289         300         340               350
 Attendance                      11,284      10,769      11,000      12,218            12,500

MEETING ROOM USES
 Central Library                    744         477         500         636               640
 Fairhaven Branch                 1,038         971       1,000       1,013             1,020
 TOTAL                            1,782       1,448       1,500       1,649             1,660

REFERENCE &
INFORMATION                      64,030      64,163      64,000      63,644            63,500




City Of Bellingham, Washington                                                       Page 163
2006 Adopted Budget
Library Department




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Page 164                                        City Of Bellingham, Washington
                                                          2006 Adopted Budget
                                                                      Museum Department


                            MUSEUM DEPARTMENT


                                      MUSEUM                    MUSEUM SOCIETY
                                     DIRECTOR                       BOARD




     CHILDREN'S
                                        ART                     ADMINISTRATION
      MUSEUM



       EDUCATION AND
                                      EXHIBIT DESIGN                   FACILITIES
         PROGRAMS



          PHOTO ARCHIVES                   COLLECTIONS




                               Departmental Mission

The Whatcom Museum of History and Art provides leadership in the fields of history and art
 in the Pacific Northwest. Through preservation, collections, exhibitions, and educational
          programs, the Museum enhances the quality of life for our community.




Description of Services

The Whatcom Museum of History and Art collects, preserves, exhibits and interprets objects
related to the Pacific Northwest's human history, visual arts and ornithology. As a cultural
center of the area, the Museum plays a vital role in offering educational, cultural and
historical experiences to the public through its extensive exhibitions, programming and
outreach activities. The Museum contributes to the quality of life of the area in four ways:
• Building and maintaining collections and photo archives to preserve historical and
    cultural objects and photographs for future generations; these collections are accessible
    to the public for research purposes.
• Providing educational programming and public outreach, including extensive programs
    for school age children, as well as musical concerts, lectures and workshops.
• Organizing exhibitions related to regional history and/or art.
• Offering innovative learning experiences for young children in the Whatcom Children's
    Museum.




City Of Bellingham, Washington                                                      Page 165
2006 Adopted Budget
Museum Department


Departmental Budget Summary

Significant Elements of City Budget
The Museum Department budget has several components, the largest of which is salaries
and benefits for the employees that deliver public programs and services in administration,
exhibitions, education, collections, photo archives, and facilities. The remaining amount
includes necessary funds for public operations such as utilities, contract services and
maintenance.

Revenues and Expenditures presented in the following tables include the City budget only.
The Museum also receives funding from the Whatcom Museum Society. Information on
that portion of the Museum’s budget is presented following this departmental budget
summary.


 Revenues, Resources and Fund         2004       2005          2006       Change from 2005
 Reserve Impact by Type              Actual     Adopted       Budget     Amount      Percent


Revenues
Intergovernmental                      14,756      34,000       34,000          0        0.0%
Charges for Services                   13,255      17,400       12,459     (4,941)     -28.4%
Miscellaneous                          29,566      21,100       29,867      8,767       41.5%
  Subtotal of Revenues                 57,577      72,500       76,326      3,826        5.3%
Adjustments to Fund Reserves
General                             1,331,292   1,340,391    1,407,688     67,297        5.0%
Capital Maint                          71,063           0       53,500     53,500           --
1st 1/4% Real Estate Excise Tax             0     208,800       60,000   (148,800)     -71.3%
  Subtotal Reserve Adjustments      1,402,355   1,549,191    1,521,188     (28,003)      -1.8%
TOTAL ALL SOURCES                   1,459,932   1,621,691    1,597,514     (24,177)      -1.5%




Page 166                                                    City Of Bellingham, Washington
                                                                      2006 Adopted Budget
                                                                         Museum Department


Departmental Budget Summary (continued)


                                       2004       2005        2006          Change from 2005
    Expenditures by Group
                                      Actual     Adopted     Budget        Amount      Percent


Museum Administration                  214,735     253,059     253,101            42       0.0%
Museum Services                      1,245,197   1,368,632   1,344,413      (24,219)      -1.8%
TOTAL EXPENSE                        1,459,932   1,621,691   1,597,514       (24,177)      -1.5%


                                       2004       2005        2006          Change from 2005
    Expenditures by Type
                                      Actual     Adopted     Budget        Amount      Percent


Salaries and Benefits                1,066,683   1,106,567   1,143,900       37,333        3.4%
Supplies                               127,801     119,322     128,778         9,456       7.9%
Other Services and Charges             222,313     332,890     188,430     (144,460)     -43.4%
Intergovernmental Services                 116         450           0          (450)   -100.0%
Interfund Charges                       43,019      62,462      62,406           (56)     -0.1%
    Subtotal of Operations           1,459,932   1,621,691   1,523,514       (98,177)      -6.1%
Capital Outlay                               0           0      74,000       74,000           --
TOTAL EXPENSE                        1,459,932   1,621,691   1,597,514       (24,177)      -1.5%


TOTAL PAID STAFF                          20.9        19.5        19.5           0.0        0.0%

The 2005 adopted Museum budget for other services and charges includes $208,800 in
funding from First ¼% Real Estate Excise Tax. These funds will be used as a grant match
to repair and replace windows in the 1892 Old City Hall building. The grant revenue offset
of $130,637 is not in the 2005 Adopted Budget because the grant was not received at that
time, but the revenue will show in 2005 Revised Budget and Actual data.


Significant Budget Changes

•    The Capital Outlay expenditure line includes $53,500 to upgrade the security system,
     plus equipment replacement.




City Of Bellingham, Washington                                                          Page 167
2006 Adopted Budget
Museum Department


                           Society Board Mission Statement

       In alliance with the City of Bellingham, the Whatcom Museum Society provides
 organizational governance and financial backing for the Whatcom Museum of History and
  Art in support of the Museum’s mission to enhance the quality of life for our community.




Museum Society Budget Summary

Significant Elements of the Museum Society Budget
The Museum Society provides funding for several functional areas not covered by City
funding, including board, fund-raising, volunteer coordination, membership development
and services, public relations, Children’s Museum, and Gift Shop.

This data for the Museum Society is provided in order to give a more complete picture of the
Museum’s operation. The Museum Society is a separate entity providing services and
funding to the museum outside of the City’s budget. Further information may be found in
the Museum’s Annual Financial Report.


                                                   2004         2005         2005        2006
  WHATCOM MUSEUM SOCIETY BUDGET
                                                  Actuals      Adopted      Actuals     Budget

INCOME:
Admissions - Whatcom Childrens' Museum              27,197        36,000      42,406      41,000
Shop Sales                                          42,505        68,200      49,156      65,000
Special Events & Public Events                      76,831        64,500      48,764     225,800
Membership                                          73,505        74,000      78,728      75,000
Program Fees, Rentals,Other                         16,504        15,000      22,350      25,000
Endowment Income                                         -        26,000      46,000       8,500
Grants & Donations                                 265,682       239,000     183,785     233,840
TOTAL RESOURCES:                                   502,224       522,700     471,189     674,140

EXPENDITURES:
Administration & Children's Museum                  75,043        56,000      47,182      53,000
Archives, Collections, Education & Acquisitions     21,887        27,500      13,200      25,500
Exhibitions                                         49,172        57,000      72,377      69,000
Fund Development & Public Relations                 97,360        79,500      79,021     186,800
Membership                                          17,322        21,000      21,471      23,000
Shop                                                27,137        52,000      22,956      37,000
Salaries, Taxes, & Benefits                        210,658       226,700     260,027     274,500
TOTAL EXPENDITURES:                                498,579       519,700     516,234     668,800
NET                                                   3,645         3,000    (45,045)       5,340
Museum Society Paid Staff FTE's:                    6.5           6.5         6.5         6.5
Volunteers:                                         4.5           4.5         4.5         4.5




Page 168                                                      City Of Bellingham, Washington
                                                                        2006 Adopted Budget
                                                                      Museum Department


Departmental Objectives for 2006

Ongoing from 2005:

1. Design, construct and sustain a new building for the Whatcom Museum, and renovate
   the 1892 Old City Hall for historic interpretation. (Council Goals 2, 3 and 5)
2. Provide effective marketing budget to promote programs, exhibitions, and events at the
   museum. (Council Goals 3, 8 and 9)
3. Actively pursue donation and acquisition of community and regional collections.
   (Council Goals 3 and 8)
4. Ensure that our education programs, Art Museum and Children’s Museum have the
   appropriate infrastructure to invigorate our programs for the future. (Council Goals 2, 3
   and 6)
5. Develop a detailed vision for new and existing museum facilities. (Council Goals 2, 3, 5,
   6, 8 and 9)
6. Revitalize, broaden, and recognize an active volunteer base. (Council Goals 3, 6 and 8)
7. Develop a clear and concise fundraising plan that has the full support and participation
   of the Board. (Council Goals 2, 3, 6 and 8)

New for 2006:

8. Provide physical and electronic access to the collection. (Council Goals 3, 6 and 8)



2005 Objectives with Accomplishments

Overall Goal
1. Design, construct and sustain a new building for the Whatcom Museum, and renovate
   the 1892 Old City Hall for historic interpretation. (Council Goals 2, 3 and 5)

   Museum Board and staff are working with the Public Facilities District (PFD) and the
   architectural consultants on completing the design and funding for the new building.
   Staff has also secured a $133,000 Washington State Heritage Grant as matching funds
   for exterior repairs of the 1892 Old City Hall building.

Audience
2. Review and update the marketing plan to prepare for a new teaching gallery, Children’s
   Museum, and enhanced historical exhibits. (Council Goals 2 and 5)

   The marketing for a new Art Museum and Children’s Museum is largely dependant upon
   the programming of those facilities. Both the board and the staff are focused on
   “branding” the museum with these new facilities and providing new and exciting
   programs that meet the expectations of the public.



City Of Bellingham, Washington                                                     Page 169
2006 Adopted Budget
Museum Department


2005 Objectives with Accomplishments (continued)

3. Provide effective marketing budget to promote programs, exhibitions, and events at the
   museum. (Council Goals 2 and 3)

   Staff secured a $38,000 Tourism Grant for public relations and has developed new in-
   kind agreements with radio and print sources.

Collections
4. Actively pursue donation and acquisition of community and regional collections.
   (Council Goal 3)

   A major collection of American Folk Art (and Americana) has come to the Museum
   through a bequest.

5. Reassess that current holdings are relative to the mission of the Museum. (Council
   Goal 3)

   A staff committee is assigned to establish a vision as to what the Museum intends to
   interpret. Progress will continue as the PFD commits to future plans for the museum.

Programs
6. Utilize the potential of our new facilities to address a broader age range for those served
   by museum offerings. (Council Goals 2 and 6)

   It is expected that programs at the new Art Museum and Children’s Museum will attract
   a more diverse audience and increase attendance from both residents and tourists.

7. Ensure that our education programs, teaching galleries, and Children’s Museum have
   the appropriate infrastructure to invigorate our programs for the future. (Council Goals 2
   and 3)

   Currently the Children’s Museum Advisory Committee is committed to support those
   programs and activities. Other private sector support is being solicited (through the
   Campaign for the Arts) to grow an endowment that will secure current and future
   programs.

Facilities
8. Develop a detailed vision for new and existing museum facilities. (Council Goals 2, 3, 5,
   and 8)

   The Museum is in the midst of articulating a clear and concise message on how the
   renovated and new facilities will enhance service, build community, and cultivate both
   education and economic development for Bellingham.




Page 170                                                   City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                                                        Museum Department


2005 Objectives with Accomplishments (continued)

9. Develop a timeline and budget for the 1892 Old City Hall upgrades and renovation of
   historical interpretation. (Council Goals 2, 3 and 5)

   This is dependent upon the PFD decision and acknowledgement of support level;
   however, the Board and staff have a preliminary time-line in place.

10. Preserve and conserve present facilities. (Council Goal 3)

   Matching funds have been allowed for grants to preserve the 1892 Old City Hall and we
   are currently in the process of repairing badly weathered windows. The Syre Education
   Center underwent renovations in the photo archives area to make a better functioning
   area for public research. Security systems for Syre and the 1892 Old City Hall will be
   replaced in 2006.

Staff and Volunteers
11. Identify priorities for personnel and staffing. Integrate these into the new City and
    Society budgets. (Council Goal 2)

   The Director and Board analyze the overall organization annually to determine staffing
   needs. The development department was expanded in 2005 to assist with the funding
   of the new facility and operational needs.

12. Revitalize, broaden, and recognize an active volunteer base. (Council Goal 8)

   A basic plan is ready for re-vamping the Docent program that is in keeping with the
   teaching needs of the new space and the need for additional labor.

Funding and Finance
13. Develop a clear and concise fundraising plan that has the full support and participation
    of the board. (Council Goals 2, 3 and 8)

   The Campaign for the Arts has 100% Board participation, together with staff and
   volunteers. The Museum continues to work with the Mt. Baker Theater to ensure a
   major endowment for operations.

14. Grow the endowment for the Museum from $800,000 to $2.5 million. (Council Goals 3
    and 8)

   Efforts have been successful in increasing the endowment to $2.2 million and gaining
   the support of community leaders.




City Of Bellingham, Washington                                                        Page 171
2006 Adopted Budget
Museum Department


2005 Objectives with Accomplishments (continued)

15. Continue to actively support the on-going operations of the museum through annual
    fund-raising activities and a growing membership program. (Council Goals 3 and 8)

   The Museum continues to grow its endowment, and provide crucial operating funds for
   programs and education.


Performance/Activity Measures

In the “05 Met” column, gray indicates that the 2005 Target is an estimate of activity only
and white indicates that the 2005 Target is a performance goal. If the white box is checked,
the goal was achieved.

  Performance /                  2003         2004        2005         2005       05       2006
  Activity Measure              Actual       Actual      Target       Actual      Met     Target

Museum Services and Administration Group
Total Attendance                  103,299     104,565     108,000      111,705             108,000
Child Attendance                   58,501      60,580      62,000       64,586              62,000
City Contribution to Budget    $ 1,465,251 $ 1,448,581 $ 1,621,691         *n/a         $ 1,523,514
  City Contribution - Capital  $         - $         - $         -         *n/a         $    74,000
Society Contribution to Budget $ 634,955 $ 505,224 $ 522,700         $ 471,189          $ 674,140

*Not yet available.




Page 172                                                     City Of Bellingham, Washington
                                                                       2006 Adopted Budget
                                   Planning and Community Development Department


PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT



                                              DIRECTOR



                                                               ADVISORY BOARDS &
                       ADMINISTRATION
                                                                  COMMISSIONS


                                                              DEPARTMENT SUPPORT
                                                                    STAFF



                                      DEVELOPMENT                  COMMUNITY
            PLANNING
                                        SERVICES                  DEVELOPMENT

           DEVELOPMENT
                                       PERMIT CENTER              SPECIAL PROJECTS
             REVIEW &
            REGULATION
                                                                      HOUSING
                                           PERMITS
          COMPREHENSIVE                                             DEVELOPMENT
               PLAN
           CITY & URBAN                                              BUDGET AND
                                         INSPECTIONS
           GROWTH AREA                                                 GRANTS

           ENVIRONMENTAL                   PLANS
          PLAN & RESOURCE               EXAMINATION
             PROTECTION

                                        PUBLIC WORKS



                                             FIRE




                              Departmental Mission

                                         Planning
    Guide community growth and development in a manner that protects environmental
   resources, promotes distinctive neighborhoods and a healthy downtown and involves
                        citizens in the decisions that affect them.

                                    Development Services
   Contribute to a safe, dynamic and livable community by maintaining a Permit Center
  offering fair, consistent, and timely customer assistance; providing a unified regulatory
 process; providing efficient, technically competent plan review, permitting and inspection
services to ensure that buildings and construction meet adopted City codes and standards.


City Of Bellingham, Washington                                                   Page 173
2006 Adopted Budget
Planning and Community Development Department


                       Departmental Mission (continued)

                                    Community Development
Enhance the quality of life for the citizens of Bellingham by focusing on community identified
 needs, strategic partnerships and customer service benefiting the public and promoting a
                                     prosperous community.




Description of Services

Planning
• Maintain and update Bellingham’s Comprehensive Plan and Neighborhood Plans.
• Carry out development review and process permits consistent with land use, subdivision
   and environmental regulations.
• Maintain and update City codes related to land use, development regulation, subdivision
   regulation, and the environment.
• Develop periodic population, housing and employment projections and maintain land
   use and natural resource inventories.
• Initiate planning processes in response to emerging community issues.

Development Services
• Assist property owners, designers, and contractors to achieve zoning, municipal code,
   and building code compliance by providing technically accurate, thorough and timely
   plan review and construction inspection.
• Provide public information resources such as self-help access to City databases, maps,
   utility and land use information, Code books, technical resource manuals, clear and
   concise information brochures in standardized format and design.
• Manage the Development Services Fund to link cost recovery to the cost of providing
   service while ensuring continuity of services.

Community Development
• Plan, procure funding for, and coordinate community planning, capital projects, tourism,
  arts, economic development, affordable housing and human service initiatives.
• Develop and manage public processes, master planning, and development strategies
  including public/private partnerships to further downtown and neighborhood
  revitalization efforts.
• Provide financial support for projects benefiting low/moderate income households and
  neighborhoods using federal Community Development Block Grant and HOME grants in
  accordance with federal regulations.
• Work with a variety of non-profit and for-profit organizations to address broad community
  needs and goals.




Page 174                                                  City Of Bellingham, Washington
                                                                    2006 Adopted Budget
                                  Planning and Community Development Department


Departmental Budget Summary


 Revenues, Resources and Fund       2004        2005        2006         Change from 2005
 Reserve Impact by Type            Actual      Adopted     Budget       Amount      Percent


Revenues
Taxes                               792,518      760,000     827,760       67,760         8.9%
Licenses and Permits              1,403,563    1,338,150   1,927,450      589,300        44.0%
Intergovernmental                 1,742,819    1,756,845   1,625,000     (131,845)       -7.5%
Charges for Services              1,415,605    1,245,212   1,722,984      477,772        38.4%
Fines and Forfeits                      275            0         100          100           --
Miscellaneous                       224,878      197,008     178,474      (18,534)       -9.4%
Non-Revenues                          7,532        8,955       9,113          158         1.8%
Other Financing Sources             186,696       67,370     153,796       86,426       128.3%
  Subtotal of Revenues            5,773,886    5,373,540   6,444,677    1,071,137        19.9%
Adjustments to Fund Reserves
General                           1,800,859    1,693,163   2,290,297     597,134         35.3%
Capital Maint                       113,211       58,000           0     (58,000)      -100.0%
1st 1/4% Real Estate Excise Tax           0            0      75,000      75,000
Tourism                             (74,620)      75,340      64,473     (10,867)       -14.4%
Housing/Community Development       (99,733)           0           0
Development Services                452,828      396,210    (257,660)    (653,870)     -165.0%
  Subtotal Reserve Adjustments    2,192,545    2,222,713   2,172,110       (50,603)       -2.3%
TOTAL ALL SOURCES                 7,966,431    7,596,253   8,616,787    1,020,534        13.4%




City Of Bellingham, Washington                                                        Page 175
2006 Adopted Budget
Planning and Community Development Department


Departmental Budget Summary (continued)


                                         2004       2005            2006        Change from 2005
    Expenditures by Group
                                        Actual     Adopted         Budget      Amount      Percent


Planning Services                      1,576,118   1,075,022       1,520,101    445,079       41.4%
Development Services                   2,452,534   2,628,712       2,912,265    283,553       10.8%
Community Develop Block Grant          2,580,385   2,596,277       2,872,790    276,513       10.7%
Tourism Activities and Facilities        492,454     608,740         663,193      54,453       8.9%
Mt Baker Theatre                         231,287     231,876         237,940       6,064       2.6%
City Center Development                  633,653     455,626         410,498     (45,128)     -9.9%
TOTAL EXPENSE                          7,966,431   7,596,253       8,616,787   1,020,534      13.4%


                                         2004       2005            2006        Change from 2005
    Expenditures by Type
                                        Actual     Adopted         Budget      Amount      Percent


Salaries and Benefits                  3,329,210   3,576,221       3,563,131     (13,090)     -0.4%
Supplies                                 164,640     121,631         114,585      (7,046)     -5.8%
Other Services and Charges             2,998,182   2,959,837       3,444,726    484,889       16.4%
Intergovernmental Services               159,729      38,579          42,418       3,839      10.0%
Interfund Charges                        735,569     741,035       1,034,279    293,244       39.6%
   Subtotal of Operations              7,387,330   7,437,303       8,199,139     761,836      10.2%
Capital Outlay                           579,101     158,950         317,648    158,698       99.8%
Interfund Transfers                            0           0         100,000    100,000          --
TOTAL EXPENSE                          7,966,431   7,596,253       8,616,787   1,020,534      13.4%


TOTAL PAID STAFF                            50.7         52.9           51.5        (1.4)      -2.6%



Significant Budget Changes

•    The increase in Licenses and Permits revenue is due to the adoption of permit fee
     increases in 2005 to ensure cost recovery.
•    The increase in the Development Services and Interfund Charges expenditure lines
     reflects the change in the allocation method for General Fund administrative services to
     recover the full cost of those services. In addition, the allocation percentages for direct
     services provided by the Fire Department and the Planning Department were updated to
     reflect actual time dedicated to Development Services issues.
•    Capital Outlay includes an Interactive Voice Response System ($35,000) for
     Development Services and funding from Community Development Block Grant and First
     Quarter Real Estate Excise Tax to make capital improvements to low-income
     neighborhoods ($172,535).




Page 176                                                        City Of Bellingham, Washington
                                                                          2006 Adopted Budget
                                     Planning and Community Development Department


Departmental Objectives for 2006

Planning
1. Complete the New Whatcom Master Development Plan and Agreement for the central
   waterfront area of Bellingham. (Council Goals 2 and 6)
2. Begin a multi-year project to develop the master plans for the four other priority urban
   villages as identified in the comprehensive plan: Barkley District Village, Sunset
   Square/James St. District Village, Lakeway Neighborhood Village, Northwest/Bakerview
   Neighborhood Village. (Council Goal 6)
3. Continue to update the Land Use Development Code in 2006. Complete most
   components of the residential, landscaping and parking chapters. Conduct hearings on
   changes to a new zoning classification system. Complete initial amendments to street
   standards. Begin updating the commercial, urban center, industrial, signs and
   subdivision chapters. (Council Goals 2 and 6)
4. Revise the 1997 inter-local agreement with Whatcom County to implement the
   Bellingham Urban Growth Area Plan. (Council Goal 6)
5. Adopt Forest Practice Application equivalent rules required by the Growth Management
   Act and designed to protect environmental resources. Update City codes and rules to
   be consistent with state practices. Update City clearing and grading ordinances.
   (Council Goal 3)
6. Begin a multi-year project to create one “utilities extension zone” for the remaining
   portions of the Urban Growth Area that do not have access to city utilities. (Council
   Goal 6)
7. Initiate a multi-year project to update the neighborhood plans, including neighborhood
   meetings to obtain public input and present proposed revisions to the Planning
   Commission. (Council Goals 2, 3 and 6)

Development Services
8. Utilize the Permit Center to unify the regulatory processes of the planning, public works,
   and fire departments.
9. Accomplish 90% of completeness review at project intake.
10. Review all qualified expedited permit applications within 3 working days.
11. Initiate review of all other permit applications within 15 working days, at which time one
    of the following three responses will be provided to the applicant:
    • the plan has been determined to be complete and compliant and is thereby
         approved;
    • the plan has been determined to not be complete and compliant and is thereby
         returned to the applicant for correction of the deficiencies; or
    • the plan has been determined to be of such a complex nature that additional time for
         review will be needed and a date certain for completion of that review will be
         provided to the applicant.




City Of Bellingham, Washington                                                      Page 177
2006 Adopted Budget
Planning and Community Development Department


Departmental Objectives for 2006 (continued)

12. Define and designate permit function core staffing requirements and costs to achieve
    cost recovery objectives, maintain appropriate funding of Permit Center activities and
    achieve and maintain targeted Development Services Fund reserve balances.
13. Provide a long term, ongoing basis for setting, monitoring and adjusting permit fees and
    construction valuation schedules.
14. Continue to develop and update Permit Center policies and public information
    resources. Projects planned for 2006 include installing an interactive voice response
    inspection scheduling system, providing web access to inspection reports, and updating
    inspection reporting methods via field computers.
15. Provide ongoing training to Department staff in the adopted International Codes and
    recognized construction standards.

Community Development
16. Provide housing, food, health care and other basic services to 25,500 very-low/low
   income, special needs and homeless persons through operating grants to nonprofit
   agencies. (Council Goals 3, 6 and 9)
17. Rehabilitate 25 homes owned by low-income families with $250,000 CDBG funds.
    (Council Goal 9)
18. Subsidize supportive rental housing for 50 low-income or homeless families while
    families learn skills to achieve greater independence. (Council Goals 6 and 9)
19. Complete improvements to the Old Village Trail in the low/moderate income
    neighborhood of Lettered Streets. (Council Goals 3, 5, 6 and 9)
20. Implement one new capital neighborhood improvement project in a low/moderate
    income neighborhood following a Request for Proposal to solicit project ideas. (Council
    Goals 3, 5, 6 and 9)
21. Develop 75 new housing units (two projects) affordable to very-low/low income and
    special needs households through low-interest loans to affordable housing developers.
    (Council Goals 2, 6 and 9)
22. Monitor the completion and occupancy of 112 new housing units affordable to very-
    low/low income households (loans provided in previous years). (Council Goals 2, 6 and
    9)
23. Monitor the completion and occupancy of 14 units of new affordable housing for first
    time homebuyers (grants provided in previous years). (Council Goals 6 and 9)
24. Assist 10 first time homebuyers in purchasing market rate homes through no-interest
    second mortgages. (Council Goals 6 and 9)
25. Complete predevelopment analysis and identify and implement a process for obtaining a
    private sector development project for City owned property at 600 West Holly. (Council
    Goals 2, 4 and 6)




Page 178                                                  City Of Bellingham, Washington
                                                                    2006 Adopted Budget
                                     Planning and Community Development Department


Departmental Objectives for 2006 (continued)

26. Seek grant funding and identify financing strategies for potential Old Town, downtown
    and waterfront redevelopment, both for City needs and as technical assistance for
    private projects.
27. Strengthen downtown organizational infrastructure in role as downtown project manager
    by tracking City Center Master Plan accomplishments and revisions and providing
    coordination between City departments and collaboration with non-profit and private
    entities with interests in downtown. (Council Goals 2 and 3)
28. Manage 5 City economic development contracts and approximately 14 tourism grants.
    Support collaboration within these programs to increase the impact of these funds in
    creating and retaining high-paying jobs and a diverse and sustainable economy.
    (Council Goals 3 and 7)
29. Enhance City’s art community by staffing the Bellingham Arts Commission and the
    Municipal Arts Program and providing technical assistance for completion and
    implementation of a Community Strategic Plan for the Arts. (Council Goal 3)
30. Provide focused, accurate and timely public information and utilize innovative tools to
    communicate with the public about department initiatives, projects and processes.
    (Council Goal 8)


2005 Objectives with Accomplishments

Planning
1. Central Waterfront Master Plan – revise the Bellingham Comprehensive Plan, applicable
   neighborhood plans, zoning regulations and the Shoreline Master Program to
   complement development of a master site plan for the central waterfront area (former
   G.P. property). Also complete an Environmental Impact Statement for the master plan.

   Completed amendments to the Bellingham Comprehensive Plan, CBD and South Hill
   Neighborhood Plans and zoning regulations, and received approvals. Drafted strategic
   guidelines. Process to develop master plan design concepts is underway. EIS process
   is underway and will be completed in 2006.

2. Complete update to Bellingham's 1995 Comprehensive Plan. Plan 40% complete by
   the end of 2004. Expected completion date - 6/1/05. (The project relates to all Council
   Goals.)

   Planning Commission review completed. City Council review nearly completed. Plan will
   be adopted in February 2006.




City Of Bellingham, Washington                                                      Page 179
2006 Adopted Budget
Planning and Community Development Department


2005 Objectives with Accomplishments (continued)

3. Complete work on a new UGA plan and a review of the urban growth boundary. This
   work was postponed in 2004 so the City and County could work on comprehensive plan
   updates. Staff work was 80% completed at the end of 2004. Public process will require
   extensive time to review significant proposed changes in zoning in the UGA. (Council
   Goals 1, 4, 6 and 7)

   Planning Commission review of changes to the urban growth boundary and zoning in
   the urban growth area completed. Work continues on the plan in 2006, waiting for
   County to complete their recommendations.

4. Define the scope of additional development code updates based on 2004 and 2005
   comprehensive plan amendments. Determine the schedule and procedure. Initiate the
   amendment process. Special regulatory topics in addition to basic regulations include
   essential public facilities, historical preservation, urban villages, and those stemming
   from waterfront master planning. (Council Goals 2, 3 and 6)

   Completed an outline of development code updates, public process methodology and
   draft schedule for implementation that was presented to Council. Completed significant
   work on the first topics in the schedule. Facilitated the adoption of a new historic
   preservation code. Completed a new critical areas code which was adopted by Council.
   Drafted legislation regarding essential public facilities, family definition and
   transportation concurrency and scheduled each for Council review. Drafted new
   shoreline regulations which are under public review.

5. Continue implementation of Lake Whatcom watershed protection, including identifying
   and implementing additional measures to reduce impacts associated with development,
   such as transfer of development rights. (Council Goal 1)

   Added new and stronger watershed protection policy language to the Bellingham
   Comprehensive Plan. Recommended to the County that 1) undeveloped portions of the
   Geneva area be removed from Bellingham's urban growth area and 2) the Sudden
   Valley area be removed from the urban growth area. Public Works is handling the work
   on transfer of development rights.

Additional Planning Division Accomplishments:

   Completed the drafting and adoption of the new Critical Areas Ordinance on time,
   meeting the GMA state deadline of 12/1/05.




Page 180                                                 City Of Bellingham, Washington
                                                                   2006 Adopted Budget
                                     Planning and Community Development Department


2005 Objectives with Accomplishments (continued)

Building Services (now Development Services)
6. Transfer archived documents from 2003-2005 into the digital imaging permit record
    archiving system. (Council Goal 8)

   Process of converting paper archived documents to digital images in the permit tracking
   database is on-going and will eventually include documents associated with Planning
   and Public Works permits.

7. Continue implementation of improvements to and increase multiple City departments’
   use of the Tidemark permit tracking system. Coordinate and administer Tidemark
   Permit Plan tracking system City-wide. (Council Goal 7)

   Implemented upgrade to Tidemark permit tracking software. Continue to support an
   increase in City departments’ use of the system.

8. Develop Permit Center policies and public information resources through coordinated
   departmental action. (Council Goal 7)

   Continued the process of updating informational handouts and forms, including updating
   information accessible on the City’s website. Efforts continue to streamline application
   review for permits for temporary use of right-of-way. The Permit Center is assisting in
   the development of a comprehensive permitting package for the film industry.

9. Participate actively with other departments and with downtown development agencies in
   achieving the goals of the City Center Action Group and supporting PFD activities.
   (Council Goal 2)

   Assigned specific Permit Center staff to coordinate effective and efficient development,
   approval and permitting of all identified City Center and PFD projects.

10. Provide pre-application procedures to educate the public and clarify interpretations to
    ensure compliance with the newly adopted International Building Code. (Council Goal
    7)

   Initiated a process whereby the public meets with representatives from City departments
   that would have an impact on development project. Began publishing a monthly
   technical assistance bulletin to provide clarification and information about code
   interpretations and other technical solutions to ensure compliance with the adopted
   building codes.

11. Provide ongoing training to departmental staff and the design and development
    community in the new International Building Code. (Council Goal 8)

   Staff members attended appropriate continuing education courses through the
   Washington Association of Building Officials or the International Code Council.



City Of Bellingham, Washington                                                       Page 181
2006 Adopted Budget
Planning and Community Development Department


2005 Objectives with Accomplishments (continued)

Community Development
12. Complete affordable housing, human service and technical assistance projects
    consistent with HUD requirements and the goals, objectives and allocations identified in
    the 2005 Action Plan of the 2003 – 2007 Consolidated Plan.

   Committed approximately $1,632,000 in federal grant funds for 5 new permanently
   affordable housing developments totaling 136 units. Provided down payment
   assistance to 14 low-income first-time homebuyers and subsidized rents for 15
   homeless families. Rehabilitated 20 homes for low-income homeowners. Secured a
   $500,000 federal grant to develop housing for homeless special needs populations.
   Through operating grants, increased the capacity of over 30 nonprofit programs that
   provide housing and services to homeless and low-income residents.

13. Complete $159,000 (CDBG) in neighborhood improvement projects in the low/moderate
    income neighborhoods of Lettered Streets and Happy Valley. (Council Goal 3)

   Completed design phase, with citizen input, for improvements to the existing Happy
   Valley Park. Completed environmental reviews and wetland permitting. The project will
   be bid in January 2006 with construction beginning in May and completion in early fall.
   Design and site surveys are underway for improvements to the Old Village Trail in the
   Lettered Streets Neighborhood. Right of way issues are being discussed with abutting
   property owners. Environmental review for the project will begin in January 2006.

14. Implement a $150,000 (CDBG) neighborhood improvement project identified through an
    RFP issued to low/moderate income neighborhoods. (Council Goal 3)

   Community Development and Parks Department staffs are determining the needs and
   opportunities for parkland acquisition in the low and moderate income neighborhoods of
   Bellingham. Staff will present a recommendation for project funding to the Community
   Development Advisory Board in early 2006.

15. Complete the upgrade of information and navigation on the Community Development
    website to better inform and involve the public about Community Development issues
    and activities. (Council Goal 8)

   Reformatted the department “portal page” and revised Community Development web
   pages to provide easier access and better information to the public.




Page 182                                                  City Of Bellingham, Washington
                                                                    2006 Adopted Budget
                                    Planning and Community Development Department


2005 Objectives with Accomplishments (continued)

16. Coordinate and continue implementation and revisions to the City Center Master Plan to
    reflect accomplishments, changing conditions and opportunities while maintaining the
    Plan as an effective framework to guide downtown revitalization. (Council Goals 2, 3, 5
    and 6)

   Met almost monthly with City Center Action Group consisting of City upper management
   with roles in downtown. Completed revisions to City Center Action Plan (CCMP)
   Implementation Strategy with Council review and approval expected in 2006 when items
   from Downtown Circulation and Parking Strategy can be incorporated. Provided
   coordination and management for CCMP implementation projects such as the Holly
   Street Landfill cleanup, downtown vagrancy issues and Depot Market. Significant work
   completed on initiatives to revise Downtown Design Guidelines and establish as
   required standards.

17. Complete Depot Market Square construction and promote, maximize and refine mixed
    use town square concept as a downtown magnet. (Council Goals 2 and 3)

   Project continued as a public/private partnership. Construction well underway in 2005
   with completion of plaza and market sheds expected by April 2006 with pavilion building
   completed in the summer.

18. Assess concepts, financing, strategies and feasibility for completing remaining Railroad
    Avenue street corridor improvements (Chestnut to Magnolia or York). (Council Goals 2
    and 5)

   Will be revisited after other priority projects and issues are completed and design
   objectives are clearer.

19. Utilize outcomes of the Growth Forum to inform and complete Old Town planning,
    potential zoning and other regulatory changes focused on well designed, people friendly
    and urban scale and financially feasible development in the area. (Council Goals 2, 3
    and 6)

   Facilitated extensive public participation and completed considerable work on Old Town
   Planning and proposed zoning and other regulatory changes for the area. Process will
   be resumed in 2006 when other related regulatory processes that influence a final Old
   Town plan are complete.

20. Identify City public benefit goals and selection criteria and issue a Request for
    Development Proposals for the two-block, City-owned 600 W. Holly Street brownfield
    site for a project to be developed as early as 2006. (Council Goals 2, 3, 6 and 7)

   Delayed until definitive zoning, Shoreline Management Plan and other related regulatory
   processes are completed.




City Of Bellingham, Washington                                                     Page 183
2006 Adopted Budget
Planning and Community Development Department


2005 Objectives with Accomplishments (continued)

21. Initiate site preparation and infrastructure improvements determined to be essential for
    attracting quality development to the 600 W. Holly brownfield site. (Council Goals 2, 3,
    6 and 7)

   Completed Holly Street Landfill Cleanup Project in June, 2005. Other site and
   infrastructure work postponed until further clarity on #20 above.

22. Coordinate funding, communication and collaboration with economic development
    agencies in support of diversifying the economy, supporting businesses and increasing
    higher-paying jobs. (Council Goal 7)

   Met monthly with City-funded agencies to discuss local initiatives, identify opportunities
   for collaboration and identify problem areas.

Additional Community Development Division Accomplishments:

   Supported arts, neighborhood and tourism initiatives through staffing and coordinating
   the Bellingham Arts Commission, Tourism Commission and managing the Small and
   Simple Grants Program and arts and tourism grants.




Page 184                                                   City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                    Planning and Community Development Department


Performance/Activity Measures

In the “05 Met” column, gray indicates that the 2005 Target is an estimate of activity only
and white indicates that the 2005 Target is a performance goal. If the white box is checked,
the goal was achieved.

  Performance /                 2003       2004          2005          2005         05     2006
  Activity Measure             Actual     Actual        Target        Actual        Met   Target


Planning
SELECTED PERMIT APPLICATIONS
Subdivision/Short Plats         55              47            50            99                  75
New Lots Created              200              123           100           130                 100
SEPA Determination            112              106           125           105                 125
Wetland                         14              21            17            40                  20
Clearing/Grading                62              36            45            25                  35
Shoreline                       17               7            12            11                  15
Planned Development             32              35            36            27                  38
Conditional Use                 21              17            22            13                  22
Building Permit Activity     1142             1184          1200          1140                1300
GROWTH IMPACT IN ACRES
Utility Extensions             n/a              n/a          n/a           n/a                 n/a
Rezones                        n/a              n/a          n/a           n/a                 n/a
Annexations                    n/a              n/a          n/a           n/a                 n/a
MEETING AND HEARING ACTIVITY
Planning Commission
Meetings                        36                 19            25            52                  24
Number of Planning
Commission Items                26                 28            32            66                  30
City Council Meetings           36                 34            40            50                  40
Number of City Council Items    75                 66            45            54                  50
Board of Adjustment/
Landmark Review Meetings         4                 12            15            9                   12
Number of Board of
Adjustment/ Landmark Review
Items                            6                 13            20            13                  12
Hearing Examiner Hearings       75                 80            20                                20
Number of Hearing Examiner
Items                           75                 80            80                                80




City Of Bellingham, Washington                                                            Page 185
2006 Adopted Budget
Planning and Community Development Department


Performance/Activity Measures (continued)


 Performance /                       2003           2004           2005           2005      05         2006
 Activity Measure                   Actual         Actual         Target         Actual     Met       Target


Building Services
Plans Reviewed                         2,000          1,145          2,200          2,146                2,500
Average Time (Number of Days)            12             9.5            15             14                   15
Permits Issued
  Building                            1,131          1,166          1,300          1,140                1,600
  Electrical                          1,984          2,200          2,000          2,229                2,100
  Mechanical                            934            835          1,050            894                1,100
  Plumbing                              311            276            350            314                  380
  Others                                248            293            550            269                  400
Total                                 4,608          4,770          5,250          4,846                5,580
Valuation of All New
Construction ($ Millions)       $     217.9    $     190.2    $     182.0    $     194.6          $     197.0
Inspections Performed                21,000         21,097         20,000         18,105               21,200
Appeals                                   2            -                2              2                    2




Page 186                                                             City Of Bellingham, Washington
                                                                               2006 Adopted Budget
                                       Planning and Community Development Department


Performance/Activity Measures (continued)


 Performance /                     2003     2004          2005          2005         05     2006
 Activity Measure                 Actual   Actual        Target        Actual        Met   Target


Community Development
Low-income housing units
created                                             0             0             0               112
Homes rehabilitated that are
owned by low/moderate
income households                                   18            25            12                  20
Rent assistance to homeless
families                                            17            20            15                  20
First-time homebuyers assisted                       5            10            14                  15
Neighborhood improvement
projects completed                                  0             1             0                   1
Very-low income persons
assisted with services (food,
shelter, clothing, counseling,
health care, domestic violence,
etc)                                         19,136       20,000        12,341              13,000
Low-income persons assisted
with services (see above)                     6,504        6,700         3,261               4,000
Economic Development
agencies supported                                5               5             5                   5
Arts projects completed                         n/a                             0                   3
Arts organizations supported                    n/a                             0                   8
Tourism organizations
supported                                           16            12            14                  12
Small neighborhood projects
supported                                           7             14            14                  15
Complete major downtown/ Old
Town capital projects                               0             1             1                    1
Complete major Old Town
planning projects                                   0             2             0                   2
City properties sold or leased
long-term                                           0                           2                   2




City Of Bellingham, Washington                                                             Page 187
2006 Adopted Budget
Planning and Community Development Department




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Page 188                                        City Of Bellingham, Washington
                                                          2006 Adopted Budget
                                                               Hearing Examiner Department


                    HEARING EXAMINER DEPARTMENT



                                      HEARING EXAMINER




                                        ADMINISTRATIVE
                                           SUPPORT




                                   Departmental Mission

                To provide fair and impartial quasi-judicial proceedings in which
                             the public is encouraged to participate.




Description of Services

•    Hear and decide quasi-judicial land use applications and administrative appeals.
•    Provide recommendations to the City Council regarding land use and procedural codes.
•    Assist the Municipal Court with judicial responsibilities.
•    Provide high quality quasi-judicial service.
•    Issue decisions in accordance with City ordinances that are consistent with officially
     adopted City policies, goals and objectives.


Departmental Budget Summary


    Revenues, Resources and Fund         2004       2005         2006        Change from 2005
    Reserve Impact by Type              Actual     Adopted      Budget      Amount      Percent


Revenues
Charges for Services                      45,776      81,518      46,055      (35,463)     -43.5%
Adjustments to Fund Reserves
General                                 104,338       53,132       95,681     42,549        80.1%
TOTAL ALL SOURCES                       150,114      134,650      141,736      7,086         5.3%




City Of Bellingham, Washington                                                           Page 189
2006 Adopted Budget
Hearing Examiner Department


Departmental Budget Summary (continued)


                                       2004       2005           2006       Change from 2005
    Expenditures by Group
                                      Actual     Adopted        Budget     Amount      Percent


Hearing Examiner                       150,114     134,650       141,736      7,086        5.3%
TOTAL EXPENSE                          150,114     134,650       141,736      7,086        5.3%


                                       2004       2005           2006       Change from 2005
    Expenditures by Type
                                      Actual     Adopted        Budget     Amount      Percent


Salaries and Benefits                  138,444     125,163       130,645      5,482        4.4%
Supplies                                 2,905       1,367         3,739      2,372      173.5%
Other Services and Charges               3,547       5,966         4,614     (1,352)     -22.7%
Interfund Charges                        5,218       2,154         2,738        584       27.1%
TOTAL EXPENSE                          150,114     134,650       141,736      7,086        5.3%


TOTAL PAID STAFF                           1.5         1.5           1.5         0.0        0.0%



Significant Budget Changes

•    The 2006 Charges for Services revenue was reduced to reflect actual activity. The
     2005 budget was over-estimated.
•    Supplies expense was under-budgeted in 2005.


Departmental Objectives for 2006

1. Maintain time between close of public hearing and issuance of decision to within 15
   days for 80% of cases. (Council Goals 6 and 8)
2. Provide semi-annual reports to Council by January 31 and August 1, 2006. (Council
   Goals 6 and 8)
3. Provide user-friendly information to participants regarding hearing procedures via
   website and mailed notices. (Council Goals 6 and 8)


2005 Objectives with Accomplishments

1. Reduce time between close of public hearing and issuance of decision to within 15 days
   for 80% of cases. (Council Goals 6 and 8)

     The average time between close of hearing and issuance of decision was 13.7 calendar
     days in 2005.



Page 190                                                     City Of Bellingham, Washington
                                                                       2006 Adopted Budget
                                                                Hearing Examiner Department


2005 Objectives with Accomplishments (continued)

2. Provide semi-annual reports to Council by January 31 and August 1, 2005. (Council
   Goals 6 and 8)

   The Hearing Examiner gave semi-annual reports to City Council on February 7th and
   August 15th, 2005.

3. Provide user-friendly information to participants regarding hearing procedures via
   website and mailed notices. (Council Goals 6 and 8)

   Additional materials, including rules of practice and procedure, were made available to
   the public on the internet.


Performance/Activity Measures

In the “05 Met” column, gray indicates that the 2005 Target is an estimate of activity only
and white indicates that the 2005 Target is a performance goal. If the white box is checked,
the goal was achieved.

  Performance /                 2003          2004          2005          2005         05     2006
  Activity Measure             Actual        Actual        Target        Actual        Met   Target

Hearing Examiner
Cases heard                             75            84            84            76                  84




City Of Bellingham, Washington                                                               Page 191
2006 Adopted Budget
Hearing Examiner Department




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Page 192                                        City Of Bellingham, Washington
                                                          2006 Adopted Budget
                                                           Human Resources Department


                   HUMAN RESOURCES DEPARTMENT


                                         DIRECTOR


                ADMINISTRATION                              POLICIES AND
                HR INFO SYSTEM                            COMMUNICATIONS

                                                            CIVIL SERVICE
                                                             COMMISSION



       HR CLIENT
                                         PAYROLL                            BENEFITS
       SERVICES
      A
      C        RECRUITMENT AND
                                                          HEALTH BENEFITS
      C           SELECTION
      O
      U       CLASSIFICATION AND                        HEALTH AND SAFETY
      N         COMPENSATION                               PROMOTION
      T
                                                             WORKERS
                LABOR RELATIONS
      M                                                    COMPENSATION
      A
      N                                                    PENSION AND
              STAFF DEVELOPMENT
      A                                                RETIREMENT BENEFITS
      G
      E          PERFORMANCE                               UNEMPLOYMENT
      R          MANAGEMENT                                COMPENSATION
      S

             WORKFORCE PLANNING




                               Departmental Mission

The most important factor in providing quality City service is the caliber and composition of
                                   the City’s workforce.

 We partner with departments to recruit and retain a workforce capable of performing the
 City’s work; to develop a safe, satisfying, motivating work environment; and to ensure a
                     cost-effective, financially sustainable labor force.




City Of Bellingham, Washington                                                     Page 193
2006 Adopted Budget
Human Resources Department


Description of Services

The Human Resources Department supports the mission of the City through employees
and personnel programs.

We are:
  • Business partners with client work groups.
  • Subject matter experts.

We design and administer:
   • Total compensation programs (wages and benefits).
   • Performance programs (selection, training, performance management).
   • Systems (payroll, Human Resources Information System, Civil Service).
   • Policies and compliance programs.

We ensure that the taxpayer receives value for labor dollars.

We advocate for all employees.


Departmental Budget Summary


 Revenues, Resources and Fund         2004         2005            2006          Change from 2005
 Reserve Impact by Type              Actual       Adopted         Budget        Amount      Percent


Revenues
Taxes                                1,057,482     1,091,200      1,423,000     331,800         30.4%
Intergovernmental                       94,082        96,000         92,530       (3,470)       -3.6%
Charges for Services                   352,190       346,226        387,235       41,009        11.8%
Miscellaneous                        8,885,300     9,391,462     10,173,468     782,006          8.3%
Non-Revenues                            66,434        73,117         73,560          443         0.6%
Other Financing Sources                100,000             0              0            0           --
  Subtotal of Revenues              10,555,488    10,998,005     12,149,793    1,151,788        10.5%
Adjustments to Fund Reserves
General                                688,538       746,580        692,973      (53,607)        -7.2%
1st 1/4% Real Estate Excise Tax              0             0          7,500        7,500            --
Unemployment Compensation             (155,045)       39,344        119,666       80,322       204.2%
Workers Comp Self-Insurance            (70,636)       55,655        109,098       53,443        96.0%
Health Benefits                        261,852       338,685        187,380    (151,305)       -44.7%
Firefighter's Pensions                (110,022)       20,069       (161,142)   (181,211)      -902.9%
Police Officer's Pensions             (108,389)      313,987       (213,770)   (527,757)      -168.1%
Firefighter's LT Care                  (60,547)     (303,173)       (23,700)    279,473        -92.2%
Police Officer's LT Care               (46,779)     (157,630)       (66,007)      91,623       -58.1%
  Subtotal Reserve Adjustments         398,972     1,053,517        651,998     (401,519)       -38.1%
TOTAL ALL SOURCES                   10,954,460    12,051,522     12,801,791      750,269          6.2%




Page 194                                                       City Of Bellingham, Washington
                                                                         2006 Adopted Budget
                                                                Human Resources Department


Departmental Budget Summary (continued)


                                         2004       2005           2006         Change from 2005
    Expenditures by Group
                                        Actual     Adopted        Budget       Amount      Percent


Human Resources Admin                    356,162      329,442       331,148      1,706          0.5%
Human Resources Services                 492,139      493,772       489,914     (3,858)        -0.8%
Human Resources Training                  48,465       74,382        72,240     (2,142)        -2.9%
HR Payroll Services                      150,324      163,703       163,067       (636)        -0.4%
HR Employee Services                      27,362       36,507        32,339     (4,168)       -11.4%
Unemployment Benefits Services            68,312      152,159       124,666    (27,493)       -18.1%
Workers Comp Benefits Services           533,059      670,611       741,276     70,665         10.5%
Health Benefits Services               7,447,219    7,822,680     8,204,432    381,752          4.9%
Pension Benefits Services              1,831,418    2,308,266     2,642,709    334,443         14.5%
TOTAL EXPENSE                         10,954,460   12,051,522    12,801,791    750,269          6.2%


                                         2004       2005           2006         Change from 2005
    Expenditures by Type
                                        Actual     Adopted        Budget       Amount      Percent


Salaries and Benefits                  2,974,398    3,356,123     3,610,217     254,094         7.6%
Supplies                                 132,552      189,302       217,637      28,335        15.0%
Other Services and Charges             7,179,894    7,933,587     8,684,892     751,305         9.5%
Intergovernmental Services                57,519       55,000        70,540      15,540        28.3%
Interfund Charges                        198,436      203,910       218,505      14,595         7.2%
    Subtotal of Operations            10,542,799   11,737,922    12,801,791   1,063,869         9.1%
Capital Outlay                            11,661       11,600             0     (11,600)     -100.0%
Interfund Transfers                      400,000      302,000             0    (302,000)     -100.0%
TOTAL EXPENSE                         10,954,460   12,051,522    12,801,791     750,269         6.2%


TOTAL PAID STAFF                            15.4         14.3          14.3         0.0         0.0%



Significant Budget Changes

•    Tax revenue reflects a significant increase in the assessed valuation for the north side of
     Bellingham. As required by state law, 22.5 cents per $1,000 of assessed valuation is
     directed to the Firefighters’ Pension Fund. The increase in this fund is offset by a
     decrease in the General Fund property tax collections.
•    The increase in expenditures in the Pension Benefits Services Group is due to expected
     additional retirements of LEOFF Plan 1 employees and a 9.6% medical premium
     increase for LEOFF Plan 1 retirees.




City Of Bellingham, Washington                                                             Page 195
2006 Adopted Budget
Human Resources Department


Departmental Objectives for 2006

1. Execute Phase II of Human Resources Information System (HRIS). Select vendor and
   start implementation process. Timeline is contingent on utility billing project completion.

2. Implement Civil Service Reform. Develop revised system and rules from 2005 reform
   plan.

3. Develop funding solutions for Public Employees Retirement System (PERS) and
   Washington Law Enforcement Officers’ and Fire Fighters’ (LEOFF) Retirement System
   increases, including internal and legislative options.

4. Review all benefits programs and make recommendations for change.
   • Identify alternative quality, cost-effective options.
   • Complete cost/benefit analysis for existing programs.

5. Restructure Human Resources Department for new service delivery models in 2007.




Page 196                                                   City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                                          Human Resources Department


2005 Objectives with Accomplishments

1. Continue transition to sustainable labor costs. (Council Goal 8)
   • Target support to departments engaged in significant staff/operational
      reorganization.

       Focused on present and future staffing for public safety; (Police and 911
       Dispatch, staff necessary for growing population and call load), Fire and EMS
       operations (deployment model).

   •   Manage staff transition programs for reductions—retain/retrain and layoffs.

       Interim staffing and transition policies continued in 2005, with staffing
       oversight transferred to Chief Administrative Officer. Personalized program
       support was provided to each employee whose position was eliminated.

   •   Develop plan for sustainable and appropriate employees’ benefits programs
       for 2007-2009.

       Developed an analytical model for calculating sustainable labor costs.
       Negotiations proposals were consistent for sustainable future labor costs and
       consistent with market.

   •   Provide training on business process and organizational change.
       o Offered multiple sessions of a minimum of 10 organizational change
          topics, based on the Public Service Competencies.

          Offered 19 different topics based on Public Service Competencies and
          organizational change (408 employees received training.)

       o Measure effectiveness, follow up, and adjust accordingly.

          Reviewed course evaluations; implemented select post-workshop
          questionnaires to assess integration of concepts into the workplace.

   •   Study, evaluate, and recommend appropriate non-public safety organizational
       design for future year budget planning.

       In the improved budgetary environment, this study was deferred.

   •   Develop Phase I of ordinance and charter change to streamline the Civil
       Service System.

       City Council agreed that the Civil Service Commission was the appropriate
       citizen group to consider change; Civil Service Commission members made a
       preliminary conclusion to consider an appeals system for non-uniformed staff.



City Of Bellingham, Washington                                                       Page 197
2006 Adopted Budget
Human Resources Department


2005 Objectives with Accomplishments (continued)

   •   Develop market study for paid time off benefits.

       Completed for bargaining units with open agreements; negotiations proposals
       consistent with study.

2. Execute Phase I of HRIS/Payroll/Benefits Projects.

   See ITSD accomplishments; this is a joint project. In addition, HR staff made numerous
   process changes and negotiated terms with various unions that will facilitate any
   HRIS/payroll system implementation.

3. Improve employee health and safety.
   • Focus education on specific health risks based on AWC health plan claims data and
      health risk reports.

       In 2005, the City updated its Employee Safety Policy and rolled out a new City-wide
       Accident Prevention Program. These initiatives should lead to a more focused
       safety message, easier to understand safety rules, and a safer workplace.

   •   Target higher risk City jobs for education and intervention based on Workers’
       Compensation Program claims data and statewide norms.

       To mitigate risks inherent in some City jobs, training classes occurred for higher-risk
       groups. Trainings occurred for Park-Operation staff, Firefighters, clerical workers
       (repetitive injury risk), and also one-on-one ergonomic training for other staff
       members.

Additional Accomplishments:

   Provided significant support to Budget Advisory Committee effort.




Page 198                                                   City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                                                     Human Resources Department


Performance/Activity Measures

In the “05 Met” column, gray indicates that the 2005 Target is an estimate of activity only
and white indicates that the 2005 Target is a performance goal. If the white box is checked,
the goal was achieved.

  Performance /                      2003          2004          2005          2005      05       2006
  Activity Measure                  Actual        Actual        Target        Actual     Met     Target


Human Resources Group
Authorized Regular Staffing              813.7         777.0         782.4        780.0                792.0
  Full-time and part-time regular positions, including seasonal parks employees, excluding temporary
  labor. Changes in position definition effective in 2002 and 2003. The 2004 positions include 5.3
  limited-term positions not previously included. Two limited term positions added in 2005. In 2004-
  2005, maintained Interim Staffing Policy to achieve reductions through attrition. Note that this is not
  the same count, by definition, as in the Budgeted Positions List.
Applications for Employment             2,428         1,932         1,800        2,205                2,000
  Clerical applications in the open and continuous pool allow a single application to be counted in
  multiple selection processes. Significant decrease in recruitment and selection activity due to budget
  reductions in 2003 - 2004 and revised recruitment process for firefighter.
Selection Processes                          52           56            70           78                   75
  Includes regular and temporary labor selections.
Job Audits
  Carried Forward from
  Previous Year                              11            4             6             3                   3
  New Requests in Year                       19            9            20           23                   15
  Completed                                  28            9            26           16                   18
Staff Development
  Courses by Category (Note: Some courses may be counted in more than one category)
    Public Service
    Competencies                            n/a            8            11           19                   15
    Diversity                                 1            1             1             1                   1
    Professional Development                17            15            12           22                   20
    Mgmt. Core Development                  18            10             6             6                   8
    City Mgmt. Systems                        9           10            19           20                   12
    Safety                                    2            4             4             7                   5
    Supervisors' Roundtables                n/a            6            11             9                  12
  Total Number of Trainees                 572           774           783          603                  725
    Does not include annual, mandatory City-wide training. (i.e. sexual harassment for line staff)
  Training Cost Per Employee
  Served                          $     11.45 $       12.58 $       14.76 $      18.33         $      21.33
    Training-related budget divided by number of employees served.
  Quarterly Leadership
  Training Breakfasts -
  Participants                             294           257           259          168                  200




City Of Bellingham, Washington                                                                   Page 199
2006 Adopted Budget
Human Resources Department


Performance/Activity Measures (continued)


 Performance /                             2003              2004              2005          2005         05         2006
 Activity Measure                         Actual            Actual            Target        Actual        Met       Target


Payroll Services Group
Average active employees paid
semi-monthly *                                   968              949              930           930                     940
Average retired Fire/Police on
payroll **                                         82                82                82            82                      82
 * Includes temporary labor employees.
 **Changed in 2003-2004 to report only those being paid, not those carried on payroll for
   benefits purposes.

Benefits Group
Workers' Comp. Claims Filed                        75                79                70                                    81
Budgeted Monthly Medical
Premium per Regular Full-time
Employee                      $                 570     $        626      $       685                           $       755
Employee Health and Safety
 Preventive Serv/Screenings                      858              910              760           675                     900
 Work Injury Prevention -
 Participants                                     n/a              n/a                           125                     100
 Employee Assistance
 Program Utilization                                             13%                n/a                               13.5%




Page 200                                                                         City Of Bellingham, Washington
                                                                                           2006 Adopted Budget
                                                                                                       Human Resources Department


Charts and Graphs


                                                    LABOR FORCE DIVERSITY STATISTICS
                                                LOCAL LABOR MARKET VS CITY OF BELLINGHAM
                           60.0

                           50.0                                                                 47.7                47.7
                                  45.3                  45.3                45.3
 % OF MINORITIES & WOMEN




                                                               36.1                37.2                36.1            36.9
                           40.0          35.3
        EMPLOYEES




                           30.0

                           20.0
                                            8.8
                                                  7.0
                                                                  8.8 8.1             8.8 8.3             8.3 8.7          8.3 8.9
                           10.0

                            0.0
                                      2000*               2001*                 2002*                2003*                2004*
                                    * Local labor market statistics based on 2000 census data, published in Residential Labor
                                   Force, Bellingham MSA, Access Washington Workforce Explorer. City data is through July
                                             15, 2004. The City will continue its efforts to develop a diverse workforce.


                                                        Labor Mkt/Women                   COB/Women
                                                        Labor Mkt/Minorities              COB/Minorities




City Of Bellingham, Washington                                                                                                       Page 201
2006 Adopted Budget
Human Resources Department


Charts and Graphs (continued)



                 MEDICAL AND DENTAL BENEFITS UNDER ASSOCIATION OF
  $7,000,000               WASHINGTON CITIES TRUST PLAN

  $6,000,000

  $5,000,000

  $4,000,000

  $3,000,000

  $2,000,000

  $1,000,000

           $-
                     2002                2003                2004          Proj. 2005           Proj. 2006
                           Medical Premiums (City Paid)              Dental Premiums (City Paid)



              Annually         2002            2003              2004          Proj. 2005          Proj. 2006
   Medical Premiums*        $ 4,057,286     $ 4,802,053       $ 5,648,679     $ 5,883,520         $ 6,414,700
    Medical Premiums
   (Employee Portion)       $           - $              - $        116,343 $      336,480 $   310,300
    Dental Premiums*        $    821,638 $        912,265 $         933,434 $      945,000 $ 1,035,000
   Medical Enrollment                 806              806               794            774         781
    Dental Enrollment                 789              790               799            774         783
   Avg. Per Employee
    *Medical Premium        $       5,034   $        5,958    $       7,114   $         7,601     $      8,213
   Avg. Per Employee
     *Dental Premium        $       1,041   $        1,155    $       1,168   $         1,221     $      1,322
           * = City Paid                        Excludes LEOFF Retirees




Page 202                                                                 City Of Bellingham, Washington
                                                                                   2006 Adopted Budget
                                                                                                                                 Human Resources Department


Charts and Graphs (continued)


                                           CITY OF BELLINGHAM INJURY INCIDENT RATE
                                        Illustrates the trend of injuries per 100 employees
                                20.00
  Numbers of Injuries per 100




                                         13.87
                                15.00
        Employees




                                10.00                                                                                                                                     9.00


                                 5.00


                                 0.00
                                         1996                   1997   1998                   1999   2000              2001        2002           2003     2004         *2005
                                                                                                                                                                         Proj.

                                                                                                                            *Projection based on 3rd quarter numbers.




                                              WORKERS' COMPENSATION FUND TOTAL REVENUE &
                                                            EXPENDITURES

 $1,000,000




                                                                                                                                                                        $711,346
                                                                                                                                                             $697,178
                                                                                                                                                $670,611
                                                                                                                                     $614,956
                                                                                                      $603,695
                                                                       $600,010
                                          $595,418

                                                     $559,070




                                                                                                                 $533,059




        $750,000
                                                                                   $489,402




        $500,000



        $250,000



                                $-
                                              2002                           2003                          2004                     2005 Proj.              2006 Proj.

                                                                                  REVENUE                             EXPENDITURES


The current reserve goal for the Workers Compensation Fund is $600,000, which is the
attachment point for our reinsurance coverage, plus $100,000. In 2006, reserve transfers
plus revenues fund the Workers Compensation program expenses. This will have the effect
of adjusting the reserve to the $600,000 level and accounts for expenses exceeding
projected revenue.


City Of Bellingham, Washington                                                                                                                                          Page 203
2006 Adopted Budget
Human Resources Department




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Page 204                                       City Of Bellingham, Washington
                                                         2006 Adopted Budget
                                                                          Finance Department


                             FINANCE DEPARTMENT



                                          FINANCE
                                         DIRECTOR


     FINANCE                           CITY CLERK                           ACCOUNTING
     OFFICER                         REPRESENTATIVE                          MANAGER

               CITY TREASURER
                                                             ACCOUNTING
                    DUTIES

                                                              ACCOUNTS
                BUSINESS TAXES
                                                               PAYABLE


                UTILITY BILLING                                AUDITING




                                  Departmental Mission

    Provide excellent customer service to the public, financial stewardship for the City’s
            resources and professional financial services to City departments.

          As City Clerk, facilitate communication and information sharing between
                                     the City and its citizens.




Description of Services

The Finance Department provides financial services to citizens and City departments
including: utility billing and collection, accounts payable, fund accounting, internal financial
controls and financial reporting.

The elected Finance Director is responsible for the duties of the City Clerk, which include
recording minutes of City Council meetings and providing information about the City to the
public. As Treasurer, the Finance Director is also responsible for investing City funds and
debt management.




City Of Bellingham, Washington                                                         Page 205
2006 Adopted Budget
Finance Department


Departmental Budget Summary


 Revenues, Resources and Fund      2004        2005           2006         Change from 2005
 Reserve Impact by Type           Actual      Adopted        Budget       Amount      Percent


Revenues
Taxes                              205,413      344,350       348,250        3,900        1.1%
Charges for Services               866,809    1,049,240     1,140,491       91,251        8.7%
Miscellaneous                    1,258,830      379,108       378,011       (1,097)      -0.3%
Other Financing Sources          2,508,512    2,427,794     2,471,610       43,816        1.8%
  Subtotal of Revenues           4,839,564    4,200,492     4,338,362      137,870        3.3%
Adjustments to Fund Reserves
General                           495,747      417,703        254,461     (163,242)     -39.1%
92 Fire GO Bond Redemption          (3,323)    183,750               0    (183,750)    -100.0%
2001 Fire UTGO Bond               317,146          (420)        (5,520)      (5,100)   1214.3%
94 Aquatic Facility G.O. Bond        5,119            0              0            0          --
1999 LTGO Bond Redemption              (95)           0              0            0          --
Refunding GO Bonds 1996                (45)           0              0            0          --
Sportsplex Acquistion Debt         (15,573)        (266)          (108)         158     -59.4%
Criminal Justice Debt             249,654             0              0            0          --
Drake Note                              42            0              0            0          --
PW State Loan-Roeder Ave               (46)           0              0            0          --
PW State Loan-Woburn St                 (9)           0              0            0          --
PW Trust Loan-Str Overlay              (20)           0              0            0          --
LID Guaranty                       (13,682)      12,750        (16,870)     (29,620)   -232.3%
#1099 Barkley Blvd                  44,841            0              0            0          --
#1106 Bakerview Rd                  15,079            0              0            0          --
#1107/1108 Telegraph/Barkley        67,478            0              0            0          --
  Subtotal Reserve Adjustments   1,162,313      613,517        231,963    (381,554)      -62.2%
TOTAL ALL SOURCES                6,001,877    4,814,009      4,570,325     (243,684)      -5.1%




Page 206                                                   City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                                                           Finance Department


Departmental Budget Summary (continued)


                                        2004       2005        2006          Change from 2005
    Expenditures by Group
                                       Actual     Adopted     Budget        Amount      Percent


Finance Administration                  231,777     216,706     221,243          4,537       2.1%
Finance Services                      1,051,797   1,165,228   1,091,129        (74,099)     -6.4%
Debt Service Administration           4,718,303   3,432,075   3,257,953      (174,122)      -5.1%
TOTAL EXPENSE                         6,001,877   4,814,009   4,570,325       (243,684)      -5.1%


                                        2004       2005        2006          Change from 2005
    Expenditures by Type
                                       Actual     Adopted     Budget        Amount      Percent


Salaries and Benefits                 1,080,010   1,168,204   1,198,665         30,461       2.6%
Supplies                                 13,981      34,280      31,133         (3,147)     -9.2%
Other Services and Charges               48,572      48,050     (71,970)     (120,020)    -249.8%
Intergovernmental Services               74,669      91,800      91,820             20       0.0%
Interfund Charges                        57,372      39,600      62,724         23,124      58.4%
   Subtotal of Operations             1,274,604   1,381,934   1,312,372        (69,562)      -5.0%
Debt Service                          4,718,303   3,432,075   3,257,953      (174,122)      -5.1%
Capital Outlay                            8,970           0           0              0          --
TOTAL EXPENSE                         6,001,877   4,814,009   4,570,325       (243,684)      -5.1%


TOTAL PAID STAFF                           18.3        18.3        18.3            0.0       0.0%



Significant Budget Changes

•    Charges for Services revenue reflects an increase in the interfund charges to more
     accurately reflect the full cost of service. The allocation method was reviewed and
     modified to include a re-allocation of charges distributed between administrative
     departments.
•    The decrease in Debt Service Administration expense is due to the 2005 retirement of
     the 92 Fire General Obligation bond.
•    The Other Services and Charges expenditure line reflects the addition of turnback to the
     departmental budgets.




City Of Bellingham, Washington                                                            Page 207
2006 Adopted Budget
Finance Department


Departmental Objectives for 2006

1. Complete Comprehensive Annual Financial Report (CAFR) in compliance with GASB
   requirements and submit for review by Government Finance Officer’s Association.
   (Council Goal 8)
2. Work with departments to develop a timely, comprehensive, City-wide capital project
   status reporting system. (Council Goal 5)
3. Complete a request for proposal for banking services which includes both core and
   ancillary cash management services, analyze bids, select a bank, and transition to a
   new bank if necessary.
4. Strengthen the City's cash handling procedures and policies by completing a cash-
   handling training manual, designing a training program for all cash handlers within the
   City, and submitting the manual and a training program to the Municipal Treasurers'
   Association of the United States and Canada for certification.
5. Continue refinement of B & O tax compliance audit program. (Council Goal 7)
6. Complete City-wide policy and procedures for cash handling, grants, contracts, and
   leases.
7. Work with departments to refine annexation/development growth financial model.
   (Council Goals 4, 6 and 7)


2005 Objectives with Accomplishments

1. Complete 2005 Comprehensive Annual Financial Report in compliance with GASB
   requirements and submit to GFOA for review and certification by June 30.

   2005 Annual Report submitted and received fourth consecutive GFOA Certificate of
   Excellence in Financial Reporting for 2004 Annual Report.

2. Complete implementation of utility billing system software upgrade and conversion to
   new billing format.

   Upgrade of utility billing system and conversation to full-page billing statement
   completed in partnership with Information Technology Services Department.

3. Complete request for proposal and select bank for City banking services.

   Project moved to 2006 to allow sufficient resource to complete utility billing project.




Page 208                                                    City Of Bellingham, Washington
                                                                      2006 Adopted Budget
                                                                      Finance Department


2005 Objectives with Accomplishments (continued)

4. Continue B&O tax compliance audit program:
   • Perform desk audits and a minimum of 12 field audits.
   • Pursue non-compliant City taxpayers identified by Washington Department of
      Revenue audits.
   • Enforce local tax law against unlicensed and revoked licensees.

   Audit plan completed and implemented with over $450 thousand collected as a result of
   specific industry correspondence reviews.

5. Create / update City-wide policy and procedures for cash handling, grants, contracts
   and leases.

   This overall goal is repeated in 2006. Specific accomplishments in 2005 include:
      •Established cash handling procedures for Clean Green program; reviewed cash
      handling procedures at Parks facilities including Bayview Cemetery, Arne Hanna
      Aquatic Facility, Lake Padden Golf Course and Parks operations. Established credit
      card process at Parkade and worked with Parking in implementation of new Luke
      pay stations.
      •Reviewed current departmental grant procedures with goal of developing improved
      processes for grant accountability.

Additional Accomplishments:

   Completed $8,695,000 million general obligation bond financing for Solid Waste
   remediation.

   Completed revision of Internal Cost Allocation Plan resulting in more equitable allocation
   of City-wide administrative costs.

   Assisted City Council in completion of ward boundary redistricting in accordance with
   City Charter provisions.

   Participated in Budget Advisory Committee presentations and subcommittee work
   leading to budget recommendations.

   Received unqualified (clean) opinion from State Auditor on 2004 Comprehensive Annual
   Financial Report.


(Note: Some 2005 Objectives associated with the Budget Division have been moved to the
Executive Department for 2006.)




City Of Bellingham, Washington                                                     Page 209
2006 Adopted Budget
Finance Department


Performance/Activity Measures

In the “05 Met” column, gray indicates that the 2005 Target is an estimate of activity only
and white indicates that the 2005 Target is a performance goal. If the white box is checked,
the goal was achieved.

  Performance /                   2003          2004          2005          2005     05         2006
  Activity Measure               Actual        Actual        Target        Actual    Met       Target


Financial Administration & Services Group
City Bond Rating - Moody's
(unlimited/limited tax bonds)     Aa3/A1      Aa3/A1      Aa3/A1      Aa3/A1                   Aa3/A1
ACCOUNTING:
  Received unqualified State
  Audit Report                      yes         yes         yes         n/a*                    yes
  Number of consecutive years
  Certificate for Excellence in
  Financial Reporting earned
  for CAFR                                4           5           6     n/a*                            7
UTILITY BILLING:
  Metered Accounts                   7,101       7,047       7,500        7,356                  7,700
  Flat Rate Accounts                16,301      16,145      16,345      16,285                  16,290
  Total Utility Accounts            23,402      23,464      24,111      23,905                  24,300
  Utility Bills Processed          140,400     141,450     144,600     144,660                 147,000
BUSINESS REGISTRATIONS:
  Registrations                      8,125       8,490       8,865        8,685                   9,000
  Business Tax Returns              20,300      20,780      21,820      21,140                   21,690
LOCAL IMPROVEMENT DISTRICTS:
  Districts                               7           6           5            5                      4
  Accounts Billed                      237         167         131          129                     120
FINANCIAL SERVICES:
  Receipts Issued                   40,552      41,705      42,000      40,212                   40,500
ACCOUNTS PAYABLE:
  Invoices Entered                  35,718      37,363      38,110      36,028                   36,000
  Checks Issued                     10,586      11,852      11,971      11,840                   12,000
INVESTMENTS AND INTEREST
  Invested at 12/31(millions)   $    106.7 $     118.0 $     127.0 $      130.9            $      130.0
  Interest Income (millions)    $       3.1 $       2.6 $       3.5 $        3.1           $         4.5
  Return on Portfolio at 12/31       3.00%       2.30%       2.75%        2.78%                   3.50%

Debt Service Administration Group
GENERAL OBLIGATION DEBT
Bonds Issued (millions)   $    -           $      20.7   $      10.0   $       8.7             unknown
Bonds Redeemed (millions) $     1.0        $       2.3   $       1.8   $       1.8         $         1.8
GO Bonded Debt (millions) $   11.0         $      29.4   $      37.6   $      36.2              n/a**
Ratio: Debt per Capita    $    157         $      420    $      530    $      501               n/a**
*Not available.
**Not applicable.




Page 210                                                        City Of Bellingham, Washington
                                                                          2006 Adopted Budget
                                          Information Technology Services Department


    INFORMATION TECHNOLOGY SERVICES DEPARTMENT



                                        DIRECTOR



                           ADMIN.
                          SERVICES



  APPLICATION                           NETWORK
                      BTV-10                               TECHNICAL         TELEPHONE
  & DATABASE                           SERVICES &
                    OPERATIONS                              SERVICES          SERVICES
   SERVICES                            OPERATIONS



                               Departmental Mission

  The Mission of the Information Technology Services Department is to provide leadership
     and direction to the departments of the City in identifying and utilizing appropriate
information technologies (data, voice and video) in such a way that the organization is more
            effective and efficient in providing government services to the public.




Description of Services

Information Technology Services Department (ITSD) is a service and support organization
for all City departments. ITSD provides technical systems leadership and support services
within the framework of City-wide priorities.




City Of Bellingham, Washington                                                    Page 211
2006 Adopted Budget
Information Technology Services Department


Description of Services (continued)

ITSD has responsibility for providing the following services for City departments:
• Business applications support – software, operations, database, and day-to-day
   technical support for business software applications.
• BTV-10 government television channel – filming, content coordination and broadcast
   services.
• Central document scanning and production support for document repositories available
   internally and via the City website.
• Electronic mail systems administration.
• Network services including security administration, configuration, and backup/recovery
   services.
• PC hardware, installation, maintenance, and day-to-day technical support for assigned
   departments.
• Technology planning, forecasting, and policy work.
• Telephone systems support, maintenance, and billing.
• Website coordination, technical maintenance, and applications development.


Departmental Budget Summary


 Revenues, Resources and Fund        2004         2005           2006         Change from 2005
 Reserve Impact by Type             Actual       Adopted        Budget       Amount      Percent


Revenues
Licenses and Permits                   95,080       88,000        163,580      75,580       85.9%
Intergovernmental                      22,106       17,802         21,600       3,798       21.3%
Charges for Services                 931,194     1,106,691      1,254,533     147,842       13.4%
Miscellaneous                          62,922       53,475         53,816         341        0.6%
Other Financing Sources              163,000       582,000        590,000       8,000        1.4%
  Subtotal of Revenues              1,274,302    1,847,968      2,083,529     235,561       12.7%
Adjustments to Fund Reserves
General                              877,308       832,071       719,946     (112,125)     -13.5%
Computer Reserve                       (5,907)    (264,800)       (76,585)    188,215      -71.1%
Telecommunications                    (35,758)     (28,786)        71,942     100,728     -349.9%
  Subtotal Reserve Adjustments        835,643      538,485        715,303     176,818       32.8%
TOTAL ALL SOURCES                   2,109,945    2,386,453      2,798,832     412,379       17.3%




Page 212                                                     City Of Bellingham, Washington
                                                                       2006 Adopted Budget
                                             Information Technology Services Department


Departmental Budget Summary (continued)


                                        2004        2005        2006         Change from 2005
    Expenditures by Group
                                       Actual      Adopted     Budget       Amount      Percent


ITSD Services                          1,653,180   1,917,470   2,113,843     196,373       10.2%
Government Access TV                      89,534      85,379     154,530      69,151       81.0%
Telecommunication                        367,231     383,604     530,459     146,855       38.3%
TOTAL EXPENSE                          2,109,945   2,386,453   2,798,832     412,379       17.3%

                                        2004        2005        2006         Change from 2005
    Expenditures by Type
                                       Actual      Adopted     Budget       Amount      Percent


Salaries and Benefits                  1,026,768   1,109,583   1,210,296     100,713        9.1%
Supplies                                  83,109      92,515      96,864       4,349        4.7%
Other Services and Charges               590,822     616,549     583,912     (32,637)      -5.3%
Intergovernmental Services                18,584      13,026      18,018       4,992       38.3%
Interfund Charges                        175,470     214,280     257,255      42,975       20.1%
    Subtotal of Operations             1,894,753   2,045,953   2,166,345     120,392        5.9%
Capital Outlay                           215,192     320,500     612,487     291,987       91.1%
Interfund Transfers                            0      20,000      20,000           0        0.0%
TOTAL EXPENSE                          2,109,945   2,386,453   2,798,832     412,379       17.3%


TOTAL PAID STAFF                            15.0        15.7        16.6          0.9        5.7%



Significant Budget Changes

•    Licenses and Permits revenue reflects an increase in the cable franchise rate to expand
     BTV-10 station capability.
•    Charges for Services revenue reflects an increase in the interfund charges to more
     accurately reflect the full cost of service. The allocation method was reviewed and
     modified to include a re-allocation of charges distributed between administrative
     departments.
•    ITSD Services and Capital Outlay both reflect the appropriation of funding for the
     Human Resources / Payroll system selection and installation.
•    Increase BTV-10 Station Coordinator position from part-time to full-time and expand
     BTV-10 programming.




City Of Bellingham, Washington                                                          Page 213
2006 Adopted Budget
Information Technology Services Department


Departmental Objectives for 2006

1. Upgrade central backup system in order to maintain reliable network backup services
   and overall network performance.
2. Select a new HR/Payroll system; create implementation plan and priorities; begin
   system implementation.
3. Improve BTV-10 service delivery by upgrading playback system and by increasing
   program coverage related to City government and services. (Council Goal 8)
4. Improve PC service delivery and planning capability by improving end user hardware
   and software tracking capabilities.
5. Improve City communications and internal efficiency by providing training and increased
   employee communications related to audio/visual equipment and standard City
   business software. (Council Goal 8)
6. Select consultant to coordinate telephone system replacement project and assist with
   project strategy and technology decisions, assuming funding is identified for 2007
   telephone system replacement.




Page 214                                                City Of Bellingham, Washington
                                                                  2006 Adopted Budget
                                             Information Technology Services Department


2005 Objectives with Accomplishments

1. Ensure high quality utility billing operations in cooperation with Finance and Utilities
   departments as we transition operations to a new system.

   Utility billing system upgrade completed; customer bills delivered in improved one-page
   format.

2. Assist the Park Department with the implementation of a web-based online parks
   registration program. (Council Goal 3)

   Online parks registration system implemented and available via City website; successful
   launch to public with significant (over 20%) public participation in first public registration
   cycle.

3. Assist Planning and Community Development Department with the implementation of
   web-based permit status checking.

   Web-based building permit review status checking feature developed to provide
   customers with permit tracking information via the City website. Web page continues to
   receive significant activity from the public.

4. Improve PC service delivery by implementing more rigorous standards, improved
   deployment tools, and by improving the management of equipment information.

   Implemented more rigorous hardware standards; purchased and implemented
   deployment software for more rapid and accurate PC deployment; implemented
   improved hardware/software tracking system.

5. Identify criteria for new HR/Payroll system selection; make significant progress toward
   system acquisition.

   Criteria for new HR/Payroll system developed; Selection consultant selected; RFP for
   system issued.

6. Improve effectiveness of communications in the City Municipal Courtroom and City
   Council Chambers by installing new audio/video equipment. The focus in the courtroom
   will be on audio. Audio and video improvements will be made to the City Council
   Chambers. (Council Goal 8)

   Courtroom audio system replaced; installed digital recording system in two courtrooms.
   Council Chambers audio/video improvements made, including installation of robotic
   cameras, media podium, projectors, audio system, and digital recording system.
   Significantly improved quality of BTV10 broadcasts; significantly improved
   communications effectiveness for meeting attendees and for BTV10 viewers.




City Of Bellingham, Washington                                                         Page 215
2006 Adopted Budget
Information Technology Services Department


2005 Objectives with Accomplishments (continued)

Additional Accomplishments:

   Launch of redesigned government and education television channel BTV10 including
   improved station look on-air, on-air schedule, website with schedule.

   Council legislative history records from 1903 through the early 1990s indexed and made
   available on City website so that legislative history dating from 1903 is accessible
   online.

   Network attached storage device implemented to provide consolidation of servers and
   data storage.


Performance/Activity Measures

In the “05 Met” column, gray indicates that the 2005 Target is an estimate of activity only
and white indicates that the 2005 Target is a performance goal. If the white box is checked,
the goal was achieved.

  Performance /                  2003       2004        2005        2005      05     2006
  Activity Measure              Actual     Actual      Target      Actual     Met   Target

Information Technology Group
City-wide Network Hosts               39         47          52          54               59
Gigabytes of Data Stored             485        650        1056        1650             1750
Support Calls per Technician         755        777         775         773              660




Page 216                                                 City Of Bellingham, Washington
                                                                   2006 Adopted Budget
                                                                         Legal Department


                               LEGAL DEPARTMENT



                                          CITY ATTORNEY




                                                                           CIVIL & RISK
       CRIMINAL
                                                                           MANAGEMENT



     PROSECUTING          ADMINISTRATIVE           ADMINISTRATIVE              CIVIL
      ATTORNEYS           SUPPORT STAFF            SUPPORT STAFF            ATTORNEYS




                                Departmental Mission

             To serve as a model public service law firm providing superior legal
                    counsel to the Mayor, City Council and departments.




Description of Services

•   Provide legal services in support of City goals and objectives.
•   Represent City in federal, state and other proceedings.
•   Defend Council, Mayor and City department actions.
•   Prosecute misdemeanors and code violations.
•   Manage the victim advocacy program.
•   Review ordinances, contracts, and other documents.
•   Manage risk and claims.




City Of Bellingham, Washington                                                      Page 217
2006 Adopted Budget
Legal Department


Departmental Budget Summary


    Revenues, Resources and Fund         2004         2005          2006        Change from 2005
    Reserve Impact by Type              Actual       Adopted       Budget      Amount      Percent


Revenues
Intergovernmental                          9,476         4,927         6,539      1,612       32.7%
Charges for Services                     471,313      333,841       407,269      73,428       22.0%
Miscellaneous                            621,516      776,726       826,793      50,067        6.4%
Non-Revenues                               8,006         8,106         8,107          1        0.0%
Other Financing Sources                1,000,000             0             0          0          --
  Subtotal of Revenues                 2,110,311     1,123,600     1,248,708    125,108       11.1%
Adjustments to Fund Reserves
General                                  631,617      724,322       748,323      24,001        3.3%
Claims Litigation                       (697,115)       76,303         3,321    (72,982)     -95.6%
  Subtotal Reserve Adjustments            (65,498)     800,625       751,644    (48,981)       -6.1%
TOTAL ALL SOURCES                      2,044,813     1,924,225     2,000,352     76,127         4.0%



                                         2004         2005          2006        Change from 2005
    Expenditures by Group
                                        Actual       Adopted       Budget      Amount      Percent


Legal Services                           926,855     1,030,910    1,129,517      98,607        9.6%
Claims, Litigation & Insurance         1,117,958       893,315      870,835     (22,480)      -2.5%
TOTAL EXPENSE                          2,044,813     1,924,225    2,000,352      76,127        4.0%


                                         2004         2005          2006        Change from 2005
    Expenditures by Type
                                        Actual       Adopted       Budget      Amount      Percent


Salaries and Benefits                   805,981       898,354     1,020,815     122,461       13.6%
Supplies                                  22,958        27,999       27,986         (13)       0.0%
Other Services and Charges              953,074       670,867       658,383     (12,484)      -1.9%
Interfund Charges                       262,800       327,005       293,168     (33,837)     -10.3%
TOTAL EXPENSE                          2,044,813     1,924,225    2,000,352      76,127        4.0%


TOTAL PAID STAFF                              9.8         11.0          12.0         1.0        9.1%



Significant Budget Changes

•    Add an Assistant City Attorney Senior position in the Criminal Division to help with the
     case load in that area.




Page 218                                                         City Of Bellingham, Washington
                                                                           2006 Adopted Budget
                                                                            Legal Department


Departmental Objectives for 2006

1. Assist Public Facilities District in overall project development. (Council Goals 3 and 5)

2. Provide legal support for downtown and Old Town community renewal projects,
   waterfront/Georgia Pacific redevelopment, and environmental cleanup. (Council Goals
   2, 3, 4, 5 and 7)

3. Provide legal support for watershed land acquisition and maintenance program.
   (Council Goals 1 and 3)

4. Provide legal support to the City's capital facility construction program. (Council Goals
   1, 2, 3 and 5)

5. Conduct legal review of City's update to its comprehensive plan, land use regulations
   and neighborhood plans. (Council Goals 3, 5, 6 and 7)


2005 Objectives with Accomplishments

1. Assist Public Facilities District in overall project development. (Council Goals 3 and 5)

   Drafted agreement between the City, PFD, and Mt. Baker Theatre memorializing
   common goals of enhancing theatre and PFD operations and meeting statutory PFD
   matching funds requirements. Continue to assist PFD with PFD projects, such as
   developing the Art and Children’s Museum architect contract, bond compliance, and
   fund raising issues.

2. Provide legal support for downtown and Old Town community renewal projects,
   waterfront/GP redevelopment, and brownfields cleanup. (Council Goals 2, 3, 4, 5 and 7)

   Drafted a new Historic Preservation Ordinance, which was adopted by City Council in
   2005. This new ordinance will promote community renewal projects and waterfront/GP
   redevelopment.

   Completed interlocal agreement with the Port of Bellingham to purchase a 49% interest
   in real property adjacent to the Cornwall Avenue Landfill which will facilitate waterfront
   redevelopment.

   Completed interlocal agreement with the Port of Bellingham for the remediation of the
   Cornwall Avenue Landfill and the Central Waterfront sites.

   Negotiated a $500,000 settlement from The Oeser Company as part of a settlement of
   its liability for a superfund site directly upland of Little Squalicum Park. This sum will be
   used for the remediation of Little Squalicum Park.

   Assisted in purchase and lease of Colony Wharf property.



City Of Bellingham, Washington                                                        Page 219
2006 Adopted Budget
Legal Department


2005 Objectives with Accomplishments (continued)

3. Consolidate and clarify the City’s development code for consistency with the Local
   Project Review Act. (Council Goals 1, 2, 3, 4 and 8)

   Provided ongoing legal support for land use/development code revisions.

4. Provide legal support for watershed land acquisition and maintenance program.
   (Council Goals 1 and 3)

   Provided legal support for the purchase of the Rohrer property (.42 acres) in the Silver
   Beach area.

   Intervened on behalf of the City in a lawsuit challenging the Landscape Plan adopted by
   DNR to protect the Lake Whatcom watershed from excessive logging.

5. Provide legal support to the City’s capital facility construction program. (Council Goals
   1, 2, 3 and 5)

   Provided ongoing legal support for City’s construction projects.

6. Conduct legal review of City’s comprehensive land use and neighborhood planning
   review. (Council Goals 3, 5, 6 and 7)

   Reviewed the proposed update to the City’s Comprehensive Plan and the related
   Transportation Concurrency Ordinance and Essential Public Facilities Ordinance. City
   Council will adopt all of these items in early 2006. Also reviewed the Critical Areas
   Ordinance, which was adopted in 2005.

Additional Accomplishments:

   Legal support provided:

       Resolved 45 claims for damages against the City efficiently and on terms favorable
       to the City.

       Provided training to City staff in areas such as public disclosure requirements, risk
       management principles and practices, and legal issues involving public employment.

       Resolved significant public disclosure issues.

       Advised City departments on sensitive labor and employment matters.

       Assessed risk management and insurance needs of the City and executed plans to
       meet those needs.




Page 220                                                  City Of Bellingham, Washington
                                                                    2006 Adopted Budget
                                                                                             Legal Department


2005 Objectives with Accomplishments (continued)

        Successfully represented the City in a variety of forums including the Board of
        Industrial Appeals, Whatcom County Superior Court, the Washington State Court of
        Appeals, and the Equal Employment Opportunity Commission.

        Assisted the Bellingham Fire Department in negotiating and ratifying agreements
        providing for county-wide specialized emergency response and appropriate use of
        funds to be derived from the newly approved sales tax.

        Assisted the City in accomplishing various environmental cleanup projects, including
        the Holly Street Landfill remediation project.

        Assisted in forfeiture process for significant illegal drug related assets.

        Assisted in the receipt and distribution of grants for domestic violence, low income
        housing and other similar programs.


Performance/Activity Measures

In the “05 Met” column, gray indicates that the 2005 Target is an estimate of activity only
and white indicates that the 2005 Target is a performance goal. If the white box is checked,
the goal was achieved.

  Performance /                         2003           2004           2005           2005       05           2006
  Activity Measure                     Actual         Actual         Target         Actual      Met         Target


Legal Services and Administration Group
Criminal Filings                    4,183        4,015         3,870          3,552                           3,980
Cost per hour for Legal
Department services            $       59 $         62 $          70 $           68                     $        70
Average hourly rate of outside
counsel                        $      203 $        182 $         197 $          197                     $       197
Attorneys (FTE's)                      5.7          5.8           7.0            8.0                            8.0
City employees (FTE's) per
Attorney                            152.2        143.3         120.3          105.3                          107.48
COMMENTS
Outside counsel are normally employed where the services of a specialist are required.

Risk Management Group
Claims filed                                93             70             70             54                    70
Amount paid for claims               $ 135,646      $ 506,404      $ 165,000      $ 132,075             $ 165,000
COMMENTS
Comparison of number of claims filed per year and dollar amounts paid per year aids in establishing
the budget level for payment of claims.
The City has experienced a relatively consistent range in number of claims filed, between 60-90
claims per year. Unanticipated events that result in City liability could always cause a fluctuation.



City Of Bellingham, Washington                                                                              Page 221
2006 Adopted Budget
Legal Department




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Page 222                                      City Of Bellingham, Washington
                                                        2006 Adopted Budget
                                                                  Executive Department


                         EXECUTIVE DEPARTMENT


                                       MAYOR


                               CHIEF ADMINISTRATIVE
                                      OFFICER



                                                GOVERNMENT          ADMINISTRATIVE
      BUDGET            COMMUNICATIONS
                                                 RELATIONS             SUPPORT




                           City of Bellingham Mission

  Support safe, satisfying and prosperous community life by providing the citizens of
 Bellingham quality, cost-effective services that meet today’s needs and form a strong
                                foundation for the future.




                        Executive Department Mission

Provide leadership, direction, and supervision of City government in a manner that creates
 a productive working environment, enhances public trust and promotes understanding of
                         City services and how they are delivered.




City Of Bellingham, Washington                                                   Page 223
2006 Adopted Budget
Executive Department


Description of Services

The Executive Department, headed by the full-time elected Mayor:

•   Leads the administration of City government.
•   Provides City-wide direction, supervision, communication and coordination.
•   Provides City Council with financial, service and operations information needed to make
    policy decisions.
•   Assists Council in determining citizen needs and providing responsive, equitable
    services to the community.
•   Prepares preliminary budgets for City Council decision-making and ensures that City
    services are delivered within financial parameters.
•   Creates awareness of City fiscal and policy issues among state and federal officials and
    legislators.
•   Develops and implements systems and strategies to ensure effective internal and
    external communications.
•   Coordinates City activities with those of other local, tribal, state and federal entities
    including Whatcom County, the Port of Bellingham, Whatcom Transit Authority, the
    Lummi Nation and Nooksack Tribe, Bellingham School District and local fire districts.




Page 224                                                    City Of Bellingham, Washington
                                                                      2006 Adopted Budget
                                                                           Executive Department


Departmental Budget Summary


    Revenues, Resources and Fund        2004           2005        2006         Change from 2005
    Reserve Impact by Type             Actual         Adopted     Budget       Amount      Percent


Revenues
Charges for Services                    398,949        372,110     515,073      142,963       38.4%
Miscellaneous                                20              0           0            0          --
  Subtotal of Revenues                  398,969        372,110     515,073      142,963       38.4%
Adjustments to Fund Reserves
General                                 573,759        521,690     422,313      (99,377)     -19.0%
1st 1/4% Real Estate Excise Tax         119,677              0           0            0           --
  Subtotal Reserve Adjustments           693,436       521,690     422,313      (99,377)      -19.0%
TOTAL ALL SOURCES                      1,092,405       893,800     937,386       43,586         4.9%



                                        2004           2005        2006         Change from 2005
    Expenditures by Group
                                       Actual         Adopted     Budget       Amount      Percent


Executive Management                   1,092,405       893,800     937,386       43,586        4.9%
TOTAL EXPENSE                          1,092,405       893,800     937,386       43,586        4.9%


                                        2004           2005        2006         Change from 2005
    Expenditures by Type
                                       Actual         Adopted     Budget       Amount      Percent


Salaries and Benefits                   851,314        686,495     737,899       51,404        7.5%
Supplies                                  25,582        15,339      21,390        6,051       39.4%
Other Services and Charges              195,716        172,298     140,447      (31,851)     -18.5%
Interfund Charges                         19,793        19,668      37,650       17,982       91.4%
TOTAL EXPENSE                          1,092,405       893,800     937,386       43,586        4.9%


TOTAL PAID STAFF                                9.8         7.9         8.6          0.7        8.9%



Significant Budget Changes

•    Charges for Services revenue reflects an increase in the interfund charges to more
     accurately reflect the full cost of service. The allocation method was reviewed and
     modified to include a re-allocation of charges distributed between administrative
     departments.
•    Increase administrative staff by .4 FTE to provide full reception coverage and partial
     administrative support for CAO, Communications Coordinator, Governmental Relations
     Director, and Budget Manager.
•    Increase budget staff by .2 FTE to assist with preparing and monitoring the City’s
     budget.




City Of Bellingham, Washington                                                             Page 225
2006 Adopted Budget
Executive Department


Departmental Objectives for 2006

1. Continue implementing long-term financial strategies to better align City government
   expenditures with available resources while maintaining proper balance of services
   offered. (All Council Goals)
2. Continue improving the process of budgeting for capital expenditures by more
   accurately identifying operating costs for new capital facilities and by working with the
   Finance Department to develop capital project reporting. (Council Goal 5)
3. Pursue strategies to address facility and operations needs for jail, library, parks and
   museum programs and administrative operations. (Council Goals 2, 3, 5 and 6)
4. Continue working with departments to develop meaningful performance measures. (All
   Council Goals.)
5. Lead City-wide implementation of waterfront redevelopment actions, as outlined in
   interlocal agreement with the Port of Bellingham. (Council Goals 2, 3, 5, 6, 7 and 8)
6. Pursue state and federal funds for development of infrastructure in waterfront
   redevelopment areas and for other City projects and programs. (Council Goals 2 and 5)
7. Advocate key issues before the state legislature and the U.S. Congress, including
   support for sensible transportation solutions, environmental protection and public safety,
   and opposition to unfunded mandates, initiatives and other measures that interfere with
   local government authority. (All Council Goals)
8. Pursue intergovernmental partnerships that result in increased or more efficient service
   delivery. (All Council Goals)
9. Provide administrative support to the Bellingham-Whatcom Public Facilities District
   Board of Directors and help ensure continued implementation of the district’s regional
   center. (Council Goals 2, 3 and 5)
10. Continue to increase the quantity, quality and timeliness of information provided to
    citizens and employees using the City’s website, television station and other
    communication tools. (Council Goals 2, 6 and 8)
11. Increase stakeholder involvement in City decision-making processes, such as through
    citizen-based strategic planning projects, scientific surveys and special task forces.
    (Council Goal 8)




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                                                                        Executive Department


2005 Objectives with Accomplishments

1. Continue implementation of long-term financial strategies in order to better align City
   government expenditures with available resources while maintaining a proper balance of
   services offered.

   •   Partnered with Human Resource-led efforts to implement employee cost-sharing for
       medical benefits.
   •   Directed Fire Department recommended changes to Emergency Medical Service
       (EMS) transport, to delay adding more ambulance staff to meet the demands for
       service.
   •   Made strategic budget and accounting changes (described in more detail the budget
       message) to more accurately identify expenses and forecast for the future.
   •   At Council’s request, initiated and staffed the Budget Advisory Committee to involve
       community leaders in developing a sustainable City budget. Executive Department
       and City department heads provided extensive information to the 15-member
       committee on all aspects of City government. The committee made
       recommendations to City officials on budget policies, general fund revenues and
       expenditures and priorities of government.

2. Continue to align staff and resources with highest priority activities of the City.

   •   Continued practice of reviewing every employee vacancy prior to replacing, to allow
       for staff and resource realignment when appropriate.
   •   Strategically added staff in a few key areas, primarily public safety, parks and
       utilities.

3. Commence implementation of waterfront redevelopment actions pursuant to interlocal
   agreement with the Port of Bellingham. (Council Goal 6)

   Established an effective working relationship with the Port of Bellingham and jointly
   conducted numerous public involvement and public information activities leading to the
   development of strategic guidelines, conceptual alternative design and a process for
   finalizing the Master Plan for the redevelopment area.




City Of Bellingham, Washington                                                           Page 227
2006 Adopted Budget
Executive Department


2005 Objectives with Accomplishments (continued)

4. Provide administrative support to the Public Facilities District (PFD) Board and help
   ensure the continued implementation of the PFD’s Regional Center. (Council Goals 2, 3
   and 5)

   Maintained effective communication between the City, Whatcom County and the PFD
   Board on Regional Center implementation. This included: (1) securing a $200,000 grant
   for lighting systems in the Mount Baker Theater and coordinating actions related to that
   grant; (2) completing the design competition for the planned Art & Children’s Museum
   (ACM), contracting for ACM architectural services while taking steps to ensure that the
   facility meets community needs through community involvement in the on-going design
   process; (3) coordinating the design and phasing of the Flora Street improvements to
   coincide with the Museum construction project; and (4) coordinating work on the
   Regional Center with other City and County initiatives.

5. Monitor effectiveness of the new Permit Center. (Council Goals 2, 7 and 8)

   The City issued over 9,039 permits in 2005, or an average of 36 permits processed
   each business day. Prior to opening the Permit Center in 2004, customers often had to
   go to four different departments to apply for permits, and it normally took 6 to 12 weeks
   or more for initial review to begin. Today, customers come to one place to get
   information or apply for permits. Single family residences are normally reviewed within
   two weeks of application. Reviews of larger commercial projects have been completed
   within three weeks of application.

   In addition to faster response time and one-stop service, additional changes have been
   implemented to improve customer service. Permit status is now available on the City's
   web site. Regular technical meetings are held in order to address code questions and
   improve consistency between reviewers. Decisions and technical issues discussed in
   the meetings are regularly communicated to the community so everyone knows what to
   expect when we review plans.

6. Pursue state and federal funds for development of infrastructure in waterfront
   redevelopment areas in order to support creation of higher wage employment
   opportunities. (Council Goal 7)

   Secured $12 million in funding for various aspects of the waterfront redevelopment
   project.

7. In conjunction with the Library Board, pursue implementation of a strategy to address
   facility and financial operation support needs of the Library. (Council Goals 2, 3 and 5)

   Collaborated with Library Board to evaluate locations for a new library, narrowed the list
   of possible sites for a new library and refined the timeline and strategy for requesting a
   voter-approved levy to fund this project.




Page 228                                                  City Of Bellingham, Washington
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2005 Objectives with Accomplishments (continued)

8. Communicate clearly and proactively significant events, emerging issues and City
   requirements so that staff, Council and the public receive understandable, accurate,
   consistent information. (Council Goal 8)

   •   Communicated on a range of City issues, such as waterfront redevelopment, 2006
       budget process and policies, changes to EMS service delivery, and Planning
       Director resignation and hiring process, so that staff, Council and the public received
       understandable, accurate, timely information.
   •   Initiated feedback to reporters and regular meetings with Bellingham Herald editors
       to ensure understanding of key City issues.
   •   Improved effectiveness of the Mayor’s Neighborhood Advisory Committee as a
       liaison between City government and neighborhoods. Increased staff support to the
       committee, provided more timely, accurate information to committee members for
       dissemination to neighborhoods, and increased opportunities for committee input
       and involvement in key City issues.
   •   Initiated and supported changes in Planning and Community Development
       Department staffing priorities to ensure more effective communication and public
       involvement regarding planning-related issues and processes.

9. Continue to improve program quality, improve effectiveness of Council meeting
   broadcasts, continue with efforts to increase local programming, and increase the
   number of people watching the City’s television channel. (Council Goal 8)

   •   Increased the quantity and breadth of City government programming, such as City
       budget information and presentations, planning commission public hearings, all
       Waterfront Advisory Group meetings and waterfront development public events.
   •   Increased promotion of City-sponsored television programs so that people can
       increasingly rely on BTV10 to provide information about key issues and events. This
       included posting BTV10 website and schedule information prominently on the City’s
       website, announcing programs through local media, and announcing airing schedule
       at meetings.
   •   Actively promoted BTV10 to other area governments as an effective communication
       tool, including Whatcom County, Western Washington University and Bellingham
       Public Schools. This resulted in many public agencies sponsoring the broadcast of
       popular community presentations and other programming of great interest to the
       Bellingham community.
   •   Partnered with ITSD-led efforts to launch redesigned government and education
       television channel - BTV10 - including improved station look and improved broadcast
       quality.
   •   Partnered with ITSD-led efforts to improve audio/visual capabilities in City Council
       Chambers and Municipal Court. These changes resulted in improved television
       broadcast quality for meetings and events held in those rooms as well as more
       efficient use of staff resources.




City Of Bellingham, Washington                                                      Page 229
2006 Adopted Budget
Executive Department


2005 Objectives with Accomplishments (continued)

10. Continue to improve the quality of information and navigation on the City’s website.
    Increase web-based service offerings to provide permit status information and parks
    registration capabilities online. (Council Goal 8)

   •   Increased the use of the City’s website as a source of information about current City
       issues and activities, including regular, timely updates to the City’s main page.
   •   Developed and maintained new website for the City/Port waterfront redevelopment
       effort as a key communication tool for this significant project.

11. Advocate key issues before the State Legislature, including supporting sensible
    transportation solutions, environmental protection and public safety initiatives and
    opposing interference with local government authority and unfunded mandates.
    (Council Goals 1, 3 and 4)

   Coordinated a successful advocacy effort involving over 50 individual bills covering such
   issues as the timeline to give financial information to the County Assessor; ambulance
   utility; funding for the Mt. Baker Theatre; additional funds for municipal and district court
   expenses, including judges’ salaries; public bidding and construction claims; public
   records; real estate excise taxes; streamlined sales tax; jobs and economic
   development; tort claims; transportation funding; and waterfront redevelopment.

12. Aggressively pursue state, federal, and other non-local funds to address community
    needs. (Council Goals 1, 2, 3, 4, 5, 7 and 8)

   Lobbying and other efforts supported the passage of a federal transportation funding
   package that includes $9,780,000 for the City/Port of Bellingham Waterfront Restoration
   Project and a State economic development package that includes $2 million. The funds
   will go toward infrastructure – streets and trails – planning and other work associated
   with redeveloping for the former Georgia Pacific property.

13. Improve customer service in all City operations.

   Directed and supported new ways of doing business that in particular resulted in more
   timely, more effective service to the citizens of Bellingham.

14. Systematically evaluate the type, level, manner and modality of delivery of City services
    to ensure the greatest value is provided to citizens by every department in the City.

   •   Reviewed departmental operations and worked with the Budget Advisory Committee
       to develop areas for further research throughout City government.
   •   Directed and supported departmental efforts to pursue business process
       improvements and organizational changes.




Page 230                                                    City Of Bellingham, Washington
                                                                      2006 Adopted Budget
                                                                     Executive Department


2005 Objectives with Accomplishments (continued)

15. Pursue intergovernmental partnerships that result in increased or more efficient service
    and delivery.

   •   Directed significant staff resources toward collaboration with the Port of Bellingham
       on developing a waterfront master plan, including providing significant public
       involvement/information support, planning, parks, and public works expertise.
   •   Continued investing in other key intergovernmental partnerships, such as with
       Western Washington University on addressing underage alcohol issues and small
       business development, and with Whatcom County on jail, emergency medical
       services, emergency management, planning and other significant issues.

16. Continue to focus effort on responding to population growth pressure by encouraging
    redevelopment in Old Town, downtown and waterfront areas.

   •   Guided through decision-making processes projects that address population growth
       pressure and urban sprawl, such as the Bellingham Comprehensive Plan, urban
       growth boundary planning and zoning and new shoreline regulations.
   •   Directed extensive public participation and other work on Old Town planning,
       proposed zoning and other regulatory changes to the area, with work expected to be
       complete in 2006.
   •   Continued to make downtown an attractive place to live, work and play by focusing
       City government attention on downtown issues such as involving downtown
       stakeholders in law enforcement issues, promoting a strategic approach to parking,
       cleaning up the Holly Street landfill and launching the construction of Depot Market
       Square.

17. Coordinate efforts related to renewal of Beyond Greenways funding.

   •   Developed relationships with community leaders to understand interests and values
       in future Greenways funding.
   •   Negotiated with members of various interest groups in an effort to reach consensus
       on a proposal that met the majority of needs.

18. Actively pursue implementation of second 5-year work program for the Lake Whatcom
    watershed.

   •   Supported the addition of stronger watershed protection policy language in the
       Bellingham Comprehensive Plan.
   •   Took steps to remove Sudden Valley and the undeveloped portions of Geneva from
       Bellingham’s urban growth area.




City Of Bellingham, Washington                                                     Page 231
2006 Adopted Budget
Executive Department


2005 Objectives with Accomplishments (continued)

19. Coordinate strategy with Library Board and Museum Society to provide adequate
    funding for cultural, educational activities and programs.

   •   In addition to providing general operating funds, increased Library funding to allow
       planning activities for a new library facility and to upgrade 23 computers to current
       City standards.
   •   In addition to providing general operating funds, provided funding to upgrade the
       Museum’s fire suppression and security systems.

20. Submit the 2005 Adopted Budget in compliance with the GFOA Distinguished Budget
    Program for review and certification.

   The City received the GFOA Distinguished Budget Award for the 2005 Adopted Budget.

21. Update written Budget policies, including reserve requirements and capital budget
    process.

   Established Budget Advisory Committee tasked with reviewing existing and
   recommending new policies. This work is ongoing and should be complete during the
   2006 budget year.

22. Develop and implement a capital budget process that includes analysis of operational
    impacts and project ranking.

   The 2006 capital budget includes operational impacts of capital projects in addition to
   project summaries for larger projects. Project ranking is still in progress.


Performance/Activity Measures

In the “05 Met” column, gray indicates that the 2005 Target is an estimate of activity only
and white indicates that the 2005 Target is a performance goal. If the white box is checked,
the goal was achieved.

  Performance /                 2003        2004         2005         2005        05     2006
  Activity Measure             Actual      Actual       Target       Actual       Met   Target

Budget Group
Number of consecutive years
GFOA Distinguished Budget
Preparation Award earned         n/a                1            2            2                  3




Page 232                                                   City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                                                  Legislative Department


                        LEGISLATIVE DEPARTMENT

Council Members

    •   Bob Ryan                                    •   Terry Bornemann
              Ward 1                                           Ward 5
              Term 1/04 - 12/07                                Term 1/04 - 12/07

    •   Gene Knutson                                •   Barbara Ryan
              Ward 2                                          Ward 6
              Term 1/06 - 12/09                               Term 1/06 - 12/09

    •   John Watts                                  •   Louise Bjornson
              Ward 3                                           At Large
              Term 1/06 - 12/09                                Term 1/06 – 12/09

    •   Joan Beardsley
              Ward 4
              Term 1/06 - 12/09




Council Functions

•   Exercise legislative authority.
•   Represent citizens through legislation and policy direction.
•   Anticipate and target issues that affect the community.
•   Set community direction and goals for the future.
•   Monitor performance of the administration in achieving goals.
•   Provide a policy framework for municipal operations and services.
•   Serve on standing committees, which act as work sessions.
•   Represent the City in regional and intergovernmental affairs.
•   Inspire our citizens to become a part of the City's future.




City Of Bellingham, Washington                                                     Page 233
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Legislative Department


Description of Services

The Bellingham City Council is the legislative branch of city government, and each member
is elected to represent all the citizens of Bellingham. The responsibilities of the Council are
set forth by state law and the Bellingham City Charter.

The principal function of the Council is policy-making for the City organization and the
population it serves, usually by resolution or ordinance. The Council adopts annual priorities
and goals and regularly reassesses community needs.

When making policy, the Council relies on ideas from many sources, including staff,
citizens’ groups, advisory committees, individuals, and various local organizations. It is the
Council’s responsibility to consider the merits of each item before them, and then approve,
modify, or reject it. This process allows Council members to analyze community needs,
program alternatives and available resources.

The principal forum for local government policy-making is the City Council meeting that
occurs on Monday evenings approximately three times a month. Standing committee
meetings take place Monday afternoons. In addition, several special meetings and work
sessions are scheduled as needed during the course of the year.

The annual budget process defines departmental objectives and goals for the following
year. The key to the budget process is the Council’s focus on developing policy, targeting
issues and establishing multi-year goals. Goals reflect community vision, and budgets and
programs make those goals reality.




Page 234                                                    City Of Bellingham, Washington
                                                                      2006 Adopted Budget
                                                                    Legislative Department


Departmental Budget Summary


    Revenues, Resources and Fund        2004       2005         2006        Change from 2005
    Reserve Impact by Type             Actual     Adopted      Budget      Amount      Percent


Revenues
Charges for Services                     98,748     105,077     156,685      51,608       49.1%
Adjustments to Fund Reserves
General                                 179,526     187,962     174,322     (13,640)       -7.3%
TOTAL ALL SOURCES                       278,274     293,039     331,007      37,968        13.0%



                                        2004       2005         2006        Change from 2005
    Expenditures by Group
                                       Actual     Adopted      Budget      Amount      Percent


City Council Services                   278,274     293,039     331,007      37,968       13.0%
TOTAL EXPENSE                           278,274     293,039     331,007      37,968       13.0%


                                        2004       2005         2006        Change from 2005
    Expenditures by Type
                                       Actual     Adopted      Budget      Amount      Percent


Salaries and Benefits                   233,291     246,649     273,159      26,510       10.7%
Supplies                                 15,810      13,146      21,870       8,724       66.4%
Other Services and Charges                9,238      13,133      14,730       1,597       12.2%
Interfund Charges                        19,935      20,111      21,248       1,137        5.7%
TOTAL EXPENSE                           278,274     293,039     331,007      37,968       13.0%


TOTAL PAID STAFF                            8.3         8.3         8.7          0.4        4.8%



Significant Budget Changes

•    Charges for Services revenue reflects an increase in the interfund charges to more
     accurately reflect the full cost of service. The allocation method was reviewed and
     modified to include a re-allocation of charges distributed between administrative
     departments.
•    Add part-time staff (0.4 FTE) and increase supplies and services costs to assist the
     Budget Advisory Committee (BAC) and to tape and broadcast the BAC’s meetings on
     BTV-10.




City Of Bellingham, Washington                                                         Page 235
2006 Adopted Budget
Legislative Department


Council Objectives for 2006

PREAMBLE:
The underlying premise that guides all City Council policy making is to protect and enhance
the quality of life and livability throughout Bellingham. The City Council established the
following Goals for 2006. These goals are priorities for the Council; at the same time, the
Council noted its support for current and ongoing programs and services. Budgetary
decisions will be based on these priorities.


         BELLINGHAM CITY COUNCIL PERFORMANCE OBJECTIVES
                            FOR 2006

Goal 1: Protect and improve the quality of drinking water in the Lake Whatcom
        Reservoir.

Performance Objectives for 2006:
1. Develop a strategy and action plan to improve the quality of drinking water in the Lake
   Whatcom Reservoir.
2. Work with Whatcom County to ensure that a stormwater facility is constructed for Cable
   Street.
3. Update the City’s Water Supply Protection Plan, which describes how the City will meet
   operational, technical, managerial and financial responsibilities to provide safe drinking
   water, today and in the future.
4. Continue working with Whatcom County to reduce density in Geneva, Hillsdale, Sudden
   Valley and the watershed as a whole.
5. Participate in community outreach programs in the Lake Whatcom watershed, focusing
   on lawn care and land stewardship.
6. Develop a strategy and action plan that supports this goal.

Goal 2: Continue to develop a vibrant downtown that includes a mix of residential,
        commercial, educational, retail, and cultural uses and amenities with
        connections between the downtown and waterfront areas.

Performance Objectives for 2006:
1. Review and adopt a Central Waterfront Master Development Plan and Agreement for
   the central waterfront area of Bellingham.
2. Assist in securing state and federal funds for infrastructure in waterfront redevelopment
   areas and for other City projects and programs.
3. Help strengthen downtown organizational efforts by promoting continued coordination
   among City departments and non-profit and private entities with interests in downtown.
4. Meet with neighborhood representatives to ensure that the City clearly understands and
   addresses their concerns.




Page 236                                                  City Of Bellingham, Washington
                                                                    2006 Adopted Budget
                                                                   Legislative Department


Council Objectives for 2006 (continued)

Goal 3: Protect and enhance the City’s cultural, educational, recreational and
        environmental assets.

Performance Objectives for 2006:
1. Evaluate and support strategies to fund facility and operations needs for library, parks
   and museum programs.
2. Enhance City’s art community by supporting local organizations and providing strategic
   planning guidance.
3. Approve funding to acquire a neighborhood park and plan for trails in north Bellingham.
4. Review distribution of the Hotel/Motel Tax.

Goal 4: Continue to develop more effective systems for moving people and freight
        through and around the city; improve the coordination of transportation,
        parking and land use decisions.

Performance Objectives for 2006:
1. Continue funding aggressive improvements to the community’s bicycle and pedestrian
   facilities.
2. Monitor implementation of the goals of the Transportation Element of the
   Comprehensive Plan.
3. Monitor implementation of the parking strategies begun in 2005.
4. Continue to work with WTA to increase transit ridership.
5. Appoint a transportation advisory committee.* (Requires further discussion with all
   Council members present).

Goal 5: Maintain existing facilities and build high-priority new capital facilities.

Performance Objectives for 2006:
1. Continue developing and implementing the necessary groundwork to build a new central
   library.
2. Evaluate structural and program needs of the Bellingham Public Library, Fairhaven
   Library, and explore establishing an enhanced library presence in north Bellingham.
3. Continue supporting plans for constructing a new building for the Whatcom Museum and
   for renovating the 1892 Old City Hall.
4. Monitor the process of budgeting for capital expenditures and ensure that the operating
   costs for new capital facilities are included in all proposals.




City Of Bellingham, Washington                                                    Page 237
2006 Adopted Budget
Legislative Department


Council Objectives for 2006 (continued)

Goal 6: Plan and respond strategically to growth pressures to preserve a high
        quality of life for all residents.

Performance Objectives for 2006:
1. Provide policy direction and support for the multi-year effort to develop master plans for
   priority urban villages identified in comprehensive plan.
2. Provide policy direction and support for the multi-year effort to update neighborhood
   plans.
3. Define requirements to achieve cost recovery and maintain appropriate funding for
   permitting and development services functions.
4. Fund and monitor strategic improvements to the water and sewer systems to protect the
   public’s investment and to meet growth needs.
5. Conduct a review of annexation policy.
6. Adopt design guidelines for Downtown and other areas that Council determines are
   likely to experience infill.

Goal 7: Continue to support development of a more diverse and sustainable local
        economy.

Performance Objectives for 2006:
1. Fund City services and facilities and support policies that maintain a high quality of life
   for Bellingham residents.
2. Work with the business community to support economic development activities that
   increase high-paying jobs in Bellingham.
3. Support collaboration within the economic development and tourism programs to
   increase the impact of these funds in creating and retaining high-paying jobs and a
   diverse, sustainable economy.
4. Investigate, identify and propose specific policies and programs that would enhance
   coordination with and among the business community.
5. Participate in the roundtables sponsored by the Small Business Development Center
   and explore ways to improve the City’s policies and operations.
6. Develop an economic development element for the Comprehensive Plan.

Goal 8: Continue to improve communication between the City and its citizens about
        all goals, priorities, and challenges.

Performance Objectives for 2006:
1. Work collaboratively as a team to clearly identify the City Council’s goals and priorities
   and to articulate to the community the rationale supporting Council decisions.
2. Provide timely, accurate information about City initiatives, projects and processes, by
   speaking at organizations and civic events and by communicating through the local
   media.
3. Provide direction on ways to increase stakeholder involvement in City decision-making
   processes, such as through citizen-based strategic planning projects, scientific surveys
   and special task forces.



Page 238                                                    City Of Bellingham, Washington
                                                                      2006 Adopted Budget
                                                                   Legislative Department


Council Objectives for 2006 (continued)

Goal 9: Continue to support programs and provide facilities that serve low income
        families and individuals.

Performance Objectives for 2006:
1. Develop active partnerships with community organizations to provide informational,
   educational and cultural programs for all Bellingham citizens throughout the year.
2. Review and determine if the funding allocated for recreation programs is being spent on
   the target groups and areas with the highest priority.
3. Review the City’s policies, programs and facilities to ensure that they provide
   appropriate levels of service to the City’s low income families and individuals.
4. Evaluate the ability of inclusionary zoning and affordable housing legislation to further
   this goal.
5. Review the Consolidated Plan to ensure that is furthering this goal.




City Of Bellingham, Washington                                                     Page 239
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Page 240                                            City Of Bellingham, Washington
                                                              2006 Adopted Budget
                                                                          Non-Departmental


                             NON-DEPARTMENTAL

Non-Departmental is for City-wide expenditures that are not specific to any City department.
It includes expenditures such as debt service, interfund transfers to reserve funds, and the
General Fund contribution to Cemetery and Medic One Funds.


Budget Summary


 Revenues, Resources and Fund         2004        2005        2006          Change from 2005
 Reserve Impact by Type              Actual      Adopted     Budget        Amount      Percent


Revenues
Charges for Services                        0       3,500             0      (3,500)     -100.0%
Miscellaneous                          40,800           0             0           0            --
  Subtotal of Revenues                 40,800       3,500             0      (3,500)      -100.0%
Adjustments to Fund Reserves
General                              4,864,521   3,195,999   3,296,989      100,990         3.2%
Capital Maint                                0     100,000           0     (100,000)     -100.0%
2nd 1/4% Real Estate Excise Tax              0     479,256     616,092      136,836        28.6%
  Subtotal Reserve Adjustments       4,864,521   3,775,255   3,913,081      137,826         3.7%
TOTAL ALL SOURCES                    4,905,321   3,778,755   3,913,081      134,326         3.6%



                                      2004        2005        2006          Change from 2005
 Expenditures by Group
                                     Actual      Adopted     Budget        Amount      Percent


Non-Departmental                     4,905,321   3,778,755   3,913,081      134,326         3.6%
TOTAL EXPENSE                        4,905,321   3,778,755   3,913,081      134,326         3.6%


                                      2004        2005        2006          Change from 2005
 Expenditures by Type
                                     Actual      Adopted     Budget        Amount      Percent


Other Services and Charges                 393     100,000      87,440      (12,560)      -12.6%
Intergovernmental Services             133,620     149,448     131,939      (17,509)      -11.7%
   Subtotal of Operations              134,013     249,448     219,379       (30,069)      -12.1%
Interfund Transfers                  4,771,308   3,529,307   3,693,702      164,395          4.7%
TOTAL EXPENSE                        4,905,321   3,778,755   3,913,081      134,326          3.6%




City Of Bellingham, Washington                                                          Page 241
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Page 242                                      City Of Bellingham, Washington
                                                        2006 Adopted Budget
                                                                     Public Facilities District


 BELLINGHAM – WHATCOM PUBLIC FACILITIES DISTRICT

    The Bellingham-Whatcom Public Facilities District (PFD) is a separate Washington
municipal corporation and an independent taxing authority. The City of Bellingham provides
    administrative services and financial management to the PFD through an interlocal
                                        agreement.


       BELLINGHAM           BELLINGHAM - WHATCOM PUBLIC                   WHATCOM
       CITY COUNCIL         FACILITIES DISTRICT BOARD OF               COUNTY COUNCIL
                                     DIRECTORS



                                       PFD MANAGER



              CITY OF BELLINGHAM                          ADMINISTRATIVE
                 SUPPORT STAFF                              ASSISTANT



                                          Mission

Build a regional center in Bellingham that will enhance life for the citizens of Bellingham and
                  Whatcom County, and for those who visit our community.




Description of Services

The Bellingham-Whatcom Public Facilities District was formed by the Bellingham City
Council and the Whatcom County Council in July 2002 to build a regional center in
Bellingham. State legislation passed in 1999 allowed such districts to be formed so that a
0.033% state sales tax rebate could be returned to cities and counties for the purpose of
constructing a regional center. This means for every $1,000 in state sales tax collected in
Bellingham and Whatcom County, 33 cents is returned to our community through the PFD.

The PFD Board is using its funding authority to support a regional center project located in
the downtown civic center area, to include, but not be limited to, any or all of the following
elements.

   •    Construction of Phase I of the Mount Baker Theatre.
   •    Construction of all or a portion of the streetscape.
   •    Design and renovation of existing space for Museum purposes.
   •    Design and construction of new Museum facilities.



City Of Bellingham, Washington                                                       Page 243
2006 Adopted Budget
Public Facilities District


   •   Acquisition of additional property for other components of the Regional Center.
   •   Construction of Phases II and/or III of the Mount Baker Theatre.
   •   Design and construction of one or more performing arts facilities.
   •   Related parking facilities.

The Regional Center projects must be located in Bellingham’s Civic Center. The District
has completed the purchase of properties in the Mount Baker Theatre block on Commercial
Street, allowing the District’s initial project, Phase I of the renovation of the Mount Baker
Theatre complex, to begin in December 2003. Phase I of the renovations was completed in
September 2004. The District also has purchased real property at 216 Grand Avenue,
Bellingham, as the future site of the proposed art museum and children’s museum. Total
capital costs for real property purchases and capital project completed to date total
approximately $6.5 million.

Those portions of the regional center funded by the PFD will be sustainable, provide a solid
foundation for further development by the public and private sector, and be a wise use of
public funds.

The City advanced funds to the PFD in 2003 and 2004 using interfund loans. These were
repaid through a bond issue on November 9, 2004. Ongoing bond payments will be made
using state sales tax revenues.


Departmental Budget Summary


  Revenues, Resources and Fund         2004        2005          2006          Change from 2005
  Reserve Impact by Type              Actual      Adopted       Budget        Amount      Percent


Revenues
Taxes                                  899,876     890,000       992,000     102,000          11.5%
Charges for Services                       927           0            960          0             --
Miscellaneous                           39,043      41,700         39,817     (1,883)         -4.5%
Non-Revenues                         5,000,000           0              0          0             --
Other Financing Sources              9,370,000           0              0          0             --
 Subtotal of Revenues               15,309,846     931,700      1,032,777    101,077          10.8%
Adjustments to Fund Reserves
Public Facilities District          (4,460,799)    706,759     2,087,574    1,380,815        195.4%
TOTAL ALL SOURCES                   10,849,047    1,638,459    3,120,351    1,481,892         90.4%




Page 244                                                      City Of Bellingham, Washington
                                                                        2006 Adopted Budget
                                                                       Public Facilities District


Departmental Budget Summary (continued)


                                         2004        2005        2006          Change from 2005
    Expenditures by Group
                                        Actual      Adopted     Budget        Amount      Percent


Public Facilities Dist Admin          10,849,047    1,638,459   3,120,351   1,481,892         90.4%
TOTAL EXPENSE                         10,849,047    1,638,459   3,120,351   1,481,892         90.4%


                                         2004        2005        2006          Change from 2005
    Expenditures by Type
                                        Actual      Adopted     Budget        Amount      Percent


Salaries and Benefits                      29,289      80,204      84,421       4,217           5.3%
Supplies                                    5,472       2,600       4,819       2,219          85.3%
Other Services and Charges                 59,586      58,810      69,688      10,878          18.5%
Intergovernmental Services                     87       7,550           0      (7,550)       -100.0%
Interfund Charges                          70,167      21,741      21,615        (126)         -0.6%
   Subtotal of Operations                 164,601     170,905     180,543       9,638           5.6%
Debt Service                            5,935,708           0           0           0             --
Capital Outlay                          4,748,738    943,000    2,398,000   1,455,000         154.3%
Interfund Transfers                             0    524,554      541,808      17,254           3.3%
TOTAL EXPENSE                          10,849,047   1,638,459   3,120,351   1,481,892          90.4%


TOTAL PAID STAFF                              0.5         1.0         1.0         0.0           0.0%



Significant Budget Changes

•    The increase in Capital Outlay reflects the initial construction costs of the Art and
     Children’s Museum.

Departmental Objectives for 2006

The Bellingham-Whatcom Public Facilities District will continue work on the phased
implementation of the Regional Center:
1. By March 2006, complete the design development phase of the Art & Children’s
   Museum. (Council Goals 2, 3 and 5)
2. By August 2006, complete the construction drawings phase of the Art & Children’s
   Museum. This objective is dependent on the private fundraising group meeting its
   established goal. (Council Goals 2, 3 and 5)
3. Continue to assist private fundraising group(s) in designing donor-recognition tools
   consistent with tax-exempt bond financing. (Council Goals 2, 3 and 5)




City Of Bellingham, Washington                                                           Page 245
2006 Adopted Budget
Public Facilities District


Departmental Objectives for 2006 (continued)

4. Continue to inform and involve stakeholders in Regional Center projects using website,
   video, public meeting materials and presentations. (Council Goals 2, 3 and 5)
5. Initiate design of streetscape improvements adjacent to the Art & Children's Museum
   site in 2006, for construction in 2007.

2005 Objectives with Accomplishments

As part of the phased implementation of the Regional Center, the PFD will continue work
on:

1. The Museum Design Competition

   On January 28, 2005, the jury recommended selection of Olson Sundberg Kundig Allen
   Architects (OSKA) as architects for the future Art and Children’s Museum (ACM). Since
   then, the PFD has: a) worked with OSKA to review the architectural program, including
   community involvement as part of the appointed program committee; b) completed
   contract negotiations for architectural services through project design and construction;
   and c) appointed a building committee (including community members) to work through
   the schematic design phase. Schematic design for the project was completed in
   November 2005 and the design development phase is now underway.

2. The Streetscape Project

   Private fundraisers have taken the Regional Center concept to a broader arts and
   cultural district concept and funded urban design work and potential streetscape designs
   to illustrate and communicate the concept throughout the campaign. The City of
   Bellingham budgeted design work and construction of Flora Street and Grand Avenue
   streetscape improvements in the 2006 and 2007 capital budgets to coincide with the
   design and construction of the ACM at Flora Street and Grand Avenue.

3. Timing for Phase II of the Mount Baker Theatre renovations

   The PFD expects Phase II of the Mount Baker Theatre renovations to be designed in
   2007 for construction in 2008. In the meantime, the Mount Baker Theatre has secured a
   grant of $120,000 for acoustical improvements and the City and PFD have secured a
   grant of $200,000 from the 2005-2007 State Capital Budget for lighting improvements.
   Work under both of these grants is scheduled for design and construction in 2006. This
   is part of a continuing effort to design and build improvements to the theatre as funding
   becomes available.




Page 246                                                 City Of Bellingham, Washington
                                                                   2006 Adopted Budget
                                                                 Public Facilities District


2005 Objectives with Accomplishments (continued)

4. Private fundraising activities to complement and supplement the state sales tax
   revenues (Council Goals 2, 3 and 5)

   Local fundraisers organized and conducted initial phases of their campaign in 2005.
   They raised $600,000 to support administrative and consultant services during the
   fundraising campaign, including streetscape design concepts noted above. At its board
   meeting in May 2005, the PFD challenged the private fundraising group to raise $3
   million of their $8.6 million target by the end of February, 2006. These monies will be
   used to set up an endowment for operating costs at the Mount Baker Theatre and the
   museums and for needed capital improvements.

Additional Accomplishment:

   Communication and community involvement strategies – The PFD transferred its
   website to a private provider, expanding website design options while maintaining key
   links to the theatre, museum and City. In addition to local and national design experts,
   citizens participated on the Design Competition Jury. The PFD continued that tradition
   by including community representatives on the ACM Program and Building Committees.
   Design Competition Jury and Building Committee deliberations were taped for broadcast
   on BTV 10.




City Of Bellingham, Washington                                                   Page 247
2006 Adopted Budget
Public Facilities District




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Page 248                                                City Of Bellingham, Washington
                                                                  2006 Adopted Budget
                                                                Public Works Department


                      PUBLIC WORKS DEPARTMENT


   ADVISORY BOARD                    ADMINISTRATION



              ENGINEERING DIVISION                  OPERATIONS DIVISION
            ADMINISTRATION & SERVICES              MAINTENANCE & SERVICES

     SURFACE & STORM WATER                                   WATER & WASTEWATER
       UTILITY MANAGEMENT                                     TREATMENT PLANTS

     PROPERTY ACQUISITION &
                                                           WATER UTILITY OPERATION
    COMMERCIAL SPACE RENTALS

                                                              STREET, SEWER, &
    ENVIRONMENTAL RESOURCES
                                                          STORMWATER MAINTENANCE

          CONSTRUCTION
                                                           SEWER UTILITY OPERATION
     & CAPITAL IMPROVEMENTS

    UTILITY PLANNING & PERMIT                              SOLID WASTE OPERATION &
             SERVICES                                            CLEAN GREEN

                                                         PURCHASING, BUDGET, FINANCE
                                                          & MATERIALS MANAGEMENT

                                                             DATA, GIS & COMPUTER

                                                           FACILITIES MANAGEMENT &
                                                              CUSTODIAL SERVICE

                                                               FLEET OPERATION &
                                                                  MAINTENANCE

                                                           TRAFFIC SIGNALS, SIGNS &
                                                           PAVEMENT MAINTENANCE &
                                                                MANAGEMENT

                                                               COMMUNICATION SYSTEMS
                                                               MAINTENANCE & SERVICES

                                                                   PARKING SERVICES




                               Departmental Mission

   The mission of the Public Works Department is to enhance Bellingham’s quality of life
through the construction and operation of a safe, effective physical environment; to protect
     public health & safety and the natural environment; and to provide our visitors, our
  neighborhoods, and our businesses the efficient, quality services necessary to meet the
                        demands of our growing, diverse community.


City Of Bellingham, Washington                                                    Page 249
2006 Adopted Budget
Public Works Department


Description of Services

The department is divided into two major divisions: Engineering and Operations.

The Engineering Division plans, designs and constructs the street, water, wastewater and
drainage systems of the City. They provide traffic engineering and Americans with
Disabilities Act (ADA) assistance. The Engineering Division manages and administers the
Storm and Surface Water Utility and provides water resource planning, education, and
protection. Engineering is responsible for the Lake Whatcom Watershed Property
Acquisition Program, right-of-way and property acquisition and general City-wide services
and assistance to the public concerning utility service availability.

The Operations Division is responsible for the maintenance and operation of infrastructure
systems including; streets, traffic signals, signs, pavement management, water distribution,
Lake Whatcom management for water supply and stormwater control, water treatment,
wastewater collection and treatment, stormwater collection and stormwater quality and flow
management systems; the provision of solid waste services to single family customers,
geographic information systems and data management; building, fleet and equipment
management services; purchasing and materials management, financial services; and
parking services.




Page 250                                                  City Of Bellingham, Washington
                                                                    2006 Adopted Budget
                                                                  Public Works Department


Departmental Budget Summary


 Revenues, Resources and Fund        2004        2005         2006          Change from 2005
 Reserve Impact by Type             Actual      Adopted      Budget        Amount      Percent


Revenues
Taxes                              8,431,006    8,592,000    9,805,700     1,213,700      14.1%
Licenses and Permits                  81,844       74,000      321,500       247,500     334.5%
Intergovernmental                  6,014,333    5,590,788    8,731,685     3,140,897      56.2%
Charges for Services              38,031,434   39,362,211   41,569,886     2,207,675       5.6%
Fines and Forfeits                    69,799       76,000       92,358        16,358      21.5%
Miscellaneous                      6,249,328    5,898,039    7,091,912     1,193,873      20.2%
Non-Revenues                      19,637,191   10,981,566   10,828,619      (152,947)     -1.4%
Other Financing Sources            1,454,413       89,700    3,514,550     3,424,850    3818.1%
  Subtotal of Revenues            79,969,348   70,664,304   81,956,210    11,291,906      16.0%
Adjustments to Fund Reserves
Street                            (1,421,729) 1,898,132      4,077,885     2,179,753      114.8%
Arterial St Construction            (247,036)   (271,381)       32,193       303,574     -111.9%
Paths & Trails Reserve                (5,211)     (4,865)       (5,010)         (145)       3.0%
Capital Maint                     (2,502,822)    220,000       100,000      (120,000)     -54.5%
1st 1/4% Real Estate Excise Tax      226,614     300,000       215,000       (85,000)     -28.3%
2nd 1/4% Real Estate Excise Tax      719,559     700,000       600,000      (100,000)     -14.3%
City Hall Annex                      117,014           0        (1,080)       (1,080)         --
Water                             (1,606,094) 1,395,723     (1,311,649)   (2,707,372)    -194.0%
Wastewater                         1,092,671     731,749     3,867,437     3,135,688      428.5%
Storm/Surface Water Utility           97,723     346,070       177,354      (168,716)     -48.8%
Solid Waste                       (1,657,312) (2,019,398)    2,343,653     4,363,051     -216.1%
Parking Services                     114,724     286,362        10,367      (275,995)     -96.4%
Fleet Administration                 (22,307)    390,815     1,071,445       680,630      174.2%
Purchasing/Materials Mngmt           184,654     (28,472)      (48,500)      (20,028)      70.3%
Facilities Administration            480,028      57,351        11,244       (46,107)     -80.4%
Nat Res Protect & Restoration      1,961,163 (2,200,000)      (222,000)    1,978,000      -89.9%
  Subtotal Reserve Adjustments    (2,468,361) 1,802,086     10,918,339     9,116,253      505.9%
TOTAL ALL SOURCES:                77,500,987 72,466,390     92,874,549    20,408,159       28.2%



 Watershed Program Revenues &       2004        2005          2006          Change from 2005
 Resources by Type From Above      Actual      Adopted       Budget        Amount      Percent


Watershed Revenues
Charges for Services              1,984,214    2,040,000    2,064,376        24,376        1.2%
Miscellaneous                        31,966       26,385       31,966         5,581       21.2%
Non-Revenues                              0            0    5,000,000     5,000,000          --
Subtotal Watershed Revenues       2,016,180    2,066,385    7,096,342     5,029,957      243.4%




City Of Bellingham, Washington                                                          Page 251
2006 Adopted Budget
Public Works Department


Departmental Budget Summary (continued)


                                        2004        2005          2006        Change from 2005
 Expenditures by Group
                                       Actual      Adopted       Budget      Amount      Percent


Public Works Administration             402,197      438,844      439,177          333       0.1%
Public Works Maint Admin                479,625      533,762      547,593       13,831       2.6%
PW Treatment Plants Operations        7,372,329    8,059,932    8,626,532      566,600       7.0%
PW Water/Wastewater Utility Ops       9,580,346   10,729,371   11,451,004      721,633       6.7%
Public Works Maintenance Ops          4,755,533    5,582,150    5,851,757      269,607       4.8%
Purchasing and Material Mgmt Ops      4,153,760    3,880,940    4,219,858      338,918       8.7%
Public Works Financial Mgmt          16,551,718   12,898,287    5,595,235   (7,303,052)    -56.6%
PW Supervision and Technology         1,627,046    1,917,767    2,008,097       90,330       4.7%
Public Works Fleet Operations         2,478,081    2,844,920    3,703,133      858,213      30.2%
Public Works Facilities Ops           1,322,336    1,947,874    1,918,706      (29,168)     -1.5%
PW Solid Waste Remediation              964,273      386,000    3,045,000    2,659,000     688.9%
PW Transportation Management          3,144,438    3,487,476    3,723,134      235,658       6.8%
Public Works Engineering Svcs         1,644,196    2,488,251    2,385,235     (103,016)     -4.1%
PW Capital Improvements               9,607,735    4,905,000   19,732,000   14,827,000     302.3%
Public Works Construction             5,179,895    6,523,788   11,352,000    4,828,212      74.0%
PW Storm and Surface Water Mgmt       1,844,816    1,914,336    1,844,736      (69,600)     -3.6%
Environmental Resources Ops           2,970,824    1,406,834    1,229,460     (177,374)    -12.6%
PW Acquisition and Facilities Mgmt      533,980      178,934      169,333       (9,601)     -5.4%
PW Watershed Svcs & Acquisition       2,697,432    2,067,398    4,475,932    2,408,534     116.5%
Commercial Leasing                      190,427      274,526      556,627      282,101     102.8%
TOTAL EXPENSE                        77,500,987   72,466,390   92,874,549   20,408,159      28.2%


                                        2004        2005          2006        Change from 2005
 Expenditures by Type
                                       Actual      Adopted       Budget      Amount      Percent


Salaries and Benefits                12,644,140   14,103,367   14,594,555      491,188       3.5%
Supplies                              3,449,206    3,230,027    3,807,234      577,207      17.9%
Other Services and Charges            7,106,690    7,974,676    8,702,394      727,718       9.1%
Intergovernmental Services            4,526,079    5,219,696    4,897,148     (322,548)     -6.2%
Interfund Charges                    12,316,022   14,276,991   15,068,043      791,052       5.5%
   Subtotal of Operations            40,042,137   44,804,757   47,069,374    2,264,617       5.1%
Debt Service                         17,638,051   10,276,830    4,686,650   (5,590,180)    -54.4%
Capital Outlay                       18,096,228   14,157,813   39,503,159   25,345,346     179.0%
Interfund Transfers                   1,724,571    3,226,990    1,615,366   (1,611,624)    -49.9%
TOTAL EXPENSE                        77,500,987   72,466,390   92,874,549   20,408,159      28.2%


TOTAL PAID STAFF                          210.2        226.3        228.9          2.6        1.1%




Page 252                                                       City Of Bellingham, Washington
                                                                         2006 Adopted Budget
                                                                  Public Works Department


Significant Budget Changes

•   In the Watershed Program Revenues, $5,000,000 Non-Revenue is for Watershed Bond
    Issue in early 2006.
•   Add a Water Utility Maintenance Worker to perform preventive maintenance tasks
    associated with the water distribution system. This position will help reduce corrective
    maintenance.
•   Increase Wastewater Utility staff by two FTEs to clean sewer lines City-wide. Preventive
    maintenance in this area will reduce sewer back-ups and resulting claims for damages.
•   Replace a limited term Engineering Assistant with a permanent full-time position to
    reduce the need for outside consultants to assist with technical design and engineering
    computations to develop construction drawings and bid documents.
•   Reductions in Financial Management are due to the elimination of debt payments and
    transfers that were included in the 2005 budget, but not applicable in 2006.
•   The Fleet Operations increase is due to the normal fluctuation in equipment
    replacement schedules.
•   The increase in Solid Waste Remediation reflects the one-time purchase of property to
    facilitate a remediation project with bond proceeds received in 2005.
•   Capital Improvements include the Nooksack Diversion Dam repair design and property
    acquisition to expand the Wastewater Treatment Plant.
•   Public Works Construction includes a significant increase in Street capital projects.
•   The Watershed Services and Acquisition increase is for land acquisition paid for by
    bond proceeds.




City Of Bellingham, Washington                                                       Page 253
2006 Adopted Budget
Public Works Department


Departmental Budget Summary (continued)


 Public Works Expenditures by Fund     2004        2005           2006          Change from 2005
 then by Group                        Actual      Adopted        Budget        Amount      Percent


Street Fund
Public Works Administration             402,197      438,844      439,177            333       0.1%
Public Works Maint Admin                479,625      533,762      547,593         13,831       2.6%
Public Works Maintenance Ops          2,974,017    3,382,344    3,263,203       (119,141)     -3.5%
Public Works Financial Mgmt             833,511    2,745,196      771,563     (1,973,633)    -71.9%
PW Supervision and Technology         1,627,046    1,917,767    2,008,097         90,330       4.7%
PW Transportation Management          2,314,505    2,466,267    2,573,971        107,704       4.4%
Public Works Engineering Svcs         1,644,196    2,288,251    2,385,235         96,984       4.2%
Public Works Construction             4,236,511    5,823,788   10,052,000      4,228,212      72.6%
Environmental Resources Ops             836,504    1,131,834    1,029,460       (102,374)     -9.0%
PW Acquisition and Facilities Mgmt      148,289      178,934      169,333         (9,601)     -5.4%
Street Fund Total                    15,496,401   20,906,987   23,239,632      2,332,645      11.2%

Arterial Street Construction Fund
Public Works Financial Mgmt            209,830      211,619       209,323        (2,296)      -1.1%
Public Works Construction               20,264            0       300,000       300,000          --
Arterial St Constr Fund Total          230,094      211,619       509,323       297,704      140.7%

Capital Maintenance Fund
Public Works Facilities Ops                  0      220,000       100,000      (120,000)     -54.5%
PW Acquisition and Facilities Mgmt      87,084            0             0             0           --
Commercial Leasing                      20,094            0             0             0           --
Capital Maint Fund Total               107,178      220,000       100,000      (120,000)      -54.5%

1st 1/4% Real Estate Excise Tax Fund
Public Works Facilities Ops              0          100,000       215,000       115,000      115.0%
Public Works Engineering Svcs            0          200,000             0      (200,000)    -100.0%
Public Works Construction          130,654                0             0              0          --
PW Acquisition and Facilities Mgmt  95,960                0             0              0          --
1st 1/4% REET Fund Total           226,614          300,000       215,000        (85,000)     -28.3%

2nd 1/4% Real Estate Excise Tax Fund
PW Capital Improvements           149,623                 0             0             0          --
Public Works Construction         792,466           700,000     1,000,000       300,000       42.9%
2nd 1/4% REET Fund Total          942,089           700,000     1,000,000       300,000       42.9%

City Hall Annex Fund
PW Acquisition and Facilities Mgmt     120,672            0               0            0             --
City Hall Annex Fund Total             120,672            0               0            0             --




Page 254                                                       City Of Bellingham, Washington
                                                                         2006 Adopted Budget
                                                                    Public Works Department


Departmental Budget Summary (continued)


 Public Works Expenditures by Fund      2004       2005          2006         Change from 2005
 then by Group                         Actual     Adopted       Budget       Amount      Percent


Water Fund
PW Treatment Plants Operations        2,618,736    2,947,387    3,168,961      221,574       7.5%
PW Water/Wastewater Utility Ops       5,859,537    6,156,662    6,868,809      712,147      11.6%
Public Works Financial Mgmt           1,124,847      463,544      554,136       90,592      19.5%
PW Capital Improvements               2,485,203    1,935,000   12,985,000   11,050,000     571.1%
Environmental Resources Ops              74,320      275,000      200,000      (75,000)    -27.3%
PW Watershed Svcs & Acquisition       2,697,432    2,067,398    4,475,932    2,408,534     116.5%
Water Fund Total                     14,860,075   13,844,991   28,252,838   14,407,847     104.1%

Wastewater Fund
PW Treatment Plants Operations        4,753,593    5,112,545    5,457,571      345,026       6.7%
PW Water/Wastewater Utility Ops       3,720,809    4,572,709    4,582,195        9,486       0.2%
Public Works Financial Mgmt          13,760,038    3,037,928    3,277,348      239,420       7.9%
PW Capital Improvements               5,820,540    1,985,000    5,712,000    3,727,000     187.8%
Wastewater Fund Total                28,054,980   14,708,182   19,029,114    4,320,932      29.4%

Storm/Surface Water Utility Fund
Public Works Maintenance Ops          1,230,019   1,640,531     1,953,751     313,220       19.1%
PW Capital Improvements               1,152,369     985,000     1,035,000      50,000        5.1%
PW Storm and Surface Water Mgmt       1,844,816   1,914,336     1,844,736     (69,600)      -3.6%
SSWU Fund Total                       4,227,204   4,539,867     4,833,487     293,620        6.5%

Solid Waste Fund
Public Works Maintenance Ops           551,497      559,275       634,803       75,528      13.5%
Public Works Financial Mgmt              23,492   6,440,000       782,865   (5,657,135)    -87.8%
PW Solid Waste Remediation             964,273      386,000     3,045,000    2,659,000     688.9%
Solid Waste Fund Total                1,539,262   7,385,275     4,462,668   (2,922,607)     -39.6%

Parking Services Fund
PW Transportation Management           829,933    1,021,209     1,149,163     127,954       12.5%
Commercial Leasing                      88,746       79,650       289,249     209,599      263.2%
Parking Services Fund Total            918,679    1,100,859     1,438,412     337,553       30.7%

Fleet Administration Fund
Public Works Fleet Operations         2,478,081   2,844,920     3,703,133     858,213       30.2%
Fleet Admin Fund Total                2,478,081   2,844,920     3,703,133     858,213       30.2%

Purchasing/Materials Management Fund
Purchasing and Material Mgmt Ops 4,153,760        3,880,940     4,219,858     338,918        8.7%
Purch/Matl Mgmt Fund Total       4,153,760        3,880,940     4,219,858     338,918        8.7%




City Of Bellingham, Washington                                                            Page 255
2006 Adopted Budget
Public Works Department


Departmental Budget Summary (continued)


  Public Works Expenditures by Fund     2004        2005           2006          Change from 2005
  then by Group                        Actual      Adopted        Budget        Amount      Percent


Facilities Administration Fund
Public Works Financial Mgmt             600,000            0             0             0          --
Public Works Facilities Ops           1,322,336    1,627,874     1,603,706       (24,168)      -1.5%
PW Acquisition and Facilities Mgmt       81,975            0             0             0          --
Commercial Leasing                       81,587      194,876       267,378        72,502       37.2%
Facilities Admin Fund Total           2,085,898    1,822,750     1,871,084        48,334        2.7%

Natural Resource Protection & Restoration Fund
Environmental Resources Ops      2,060,000                 0               0            0             --
Nat Res Protect Restore Fund      2,060,000                0               0            0             --

TOTAL ALL FUNDS                       77,500,987   72,466,390    92,874,549    20,408,159      28.2%



Departmental Objectives for 2006

Administration
1. Continue cleanup strategies on Bellingham Bay for the Cornwall landfill and Roeder
   landfill. (Council Goal 3)

Maintenance Administration
2. Provide oversight and leadership focused at operating and maintaining department
   programs that are efficient and responsive to both internal and external customers.
   Synchronize programs with population growth in order to maintain responsible services.
   (Council Goal 6)
3. Continue to review and analyze the business practices of the department with the goal
   of providing responsive and efficient products and services while keeping a close check
   on the staffing levels by maximizing technological tools. (Council Goal 6)

Treatment Plants
Post Point Pollution Control Plant
4. Create and implement a policy for the acceptance of pre-treated wastewater from
   underground remediation sources that includes criteria for treatment, cost of service and
   maximum contaminant levels within the source water.
5. Complete high purity oxygen tank energy evaluation by implementing strategies and
   new process controls to convert the first stage aeration basin to an anaerobic process.
6. Initiate a study to determine if switching the Wastewater Treatment Plant's disinfection
   agent from liquid chlorine to sodium hypochlorite is economically feasible and increases
   the safety at the facility.




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Departmental Objectives for 2006 (continued)

Water Filtration Plant
7. Review and update the City's on-site sewage system agreement with the Whatcom
   County Health Department to ensure that the program meets specific goals and
   objectives set forth in the management of the Lake Whatcom watershed. (Council Goal
   1)
8. Implement a new automatic control feed system on the facility's chemical polymer
   process with the intent to limit manual operation of this process.
9. Install high speed flash mixer on the water treatment plant raw water influent to reduce
   chemical usage and decrease operational costs.

Water / Wastewater Utilities
Water
10. Implement a strategic plan to enhance the City's leak detection program to better
    understand unaccounted-for water and be able to respond to the new reporting criteria
    set forth in the Washington Municipal Water Law - Water Use Efficiency Rule. (Council
    Goal 1)
11. Improve the City's voluntary metering program by focusing efforts on education and
    public understanding of the benefits to meter.
Wastewater
12. Reduce the number of claims for backed up sewers by cleaning the main lines more
    frequently. (Council Goal 5)
13. Develop a fats, oils and grease (FOG) control program that focuses on best
    management practices, removal systems and a monitoring procedure to ensure
    compliance. (Council Goal 5)

Maintenance Operations
Street Maintenance
14. Implement and monitor the new work management and maintenance plan. (Council
    Goal 5)
Storm and Surface Water Maintenance
15. Prioritize and schedule maintenance projects that are identified by the storm sewer
    scanning program. (Council Goal 5)
16. Implement and monitor the new work management and maintenance plan. (Council
    Goal 5)

Purchasing, Materials Management
Purchasing
17. Expand annual vendor forum to include additional public agencies. Encourage
    participation by federal agencies. Provide additional education and resources to
    vendors on how to do business with local, state and federal agencies. (Council Goal 7)


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Departmental Objectives for 2006 (continued)

Warehouse
18. Increase customer satisfaction and efficiency by delivering fleet parts within 15 minutes
    of receipt for 90% of orders.

Financial Management
19. Prepare a Financial Services emergency operations plan.

Supervision and Technology
Data Services
20. Provide comprehensive pedestrian traffic information for planning and replacement
    activities. (Council Goal 4)
21. Further enhance the coordination and reporting process for replacement of water,
    sewer, street, alley and sidewalk infrastructure. (Council Goal 4)
GIS/Technical Services
22. Re-evaluate the role of an asset/work management system and other integrated
    systems within the Public Works business model. (Council Goals 6 and 8)
23. Evaluate the use of consultant services within GIS/Technical Services. (Council Goal 6)
24. Evaluate software usage within Public Works. (Council Goal 6)
25. Evaluate hardware usage and provide cost effective management of the department’s
    computer hardware. (Council Goal 6)

Fleet Operations
26. Improve Fleet Services planning and scheduling coordination with customers. (Council
    Goal 8)
27. Initiate and maintain ongoing and regular communication with each customer. (Council
    Goal 8)

Facilities Operations
28. Ensure City-owned buildings are clean and sanitary for employees and the public.
    (Council Goal 5)
29. Maintain City building infrastructure values and ensure buildings are safe, comfortable
    and productive places in which to work.

Solid Waste Operations
30. Monitor the Clean Green fee structure to make sure that it reflects the intent of the inter-
    local agreement with the County and make changes if needed. (Council Goal 5)

Transportation Management
Communications
31. Complete fiber optic cable inventory and adopt a cost sharing business model to allow
    other public agencies to utilize the fiber infrastructure. (Council Goal 5)



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Departmental Objectives for 2006 (continued)

32. Expand fiber optic cable to Sehome radio tower to eliminate leased telephone lines.
    (Council Goal 5)
Street Lighting
33. Design and construct a new lighting system along Old Fairhaven Parkway, incorporating
    provisions for a parallel fiber optic conduit to complete a south side redundant loop.
    (Council Goal 5)
Signals
34. Upgrade network communication equipment at signalized intersections along WTA high
    frequency corridors to allow for transit signal priority. (Council Goal 4)
35. Acquire property at critical locations to construct right turn lanes at signalized
    intersections to preserve the operating capacity necessary to accommodate new
    development. (Council Goal 6)
Parking
36. Install a more efficient billing system for monthly permit holders. (Council Goal 4)
37. Evaluate best locations for pay and display technology (LUKE) throughout the Railroad
    Avenue corridor and other areas of intense meter use. Expand use of LUKE systems
    where appropriate. (Council Goal 4)
38. Explore options for developing special emphasis enforcement patrols for key violations
    identified by the Parking Commission and downtown businesses. (Council Goal 2)

Engineering Services
Design and Construction
39. Manage, design, and construct Public Works Department capital improvements
    identified in the Capital Budget. (Council Goal 5)
40. Assist the PFD with development and management of contracts relating to the design
    and construction of the Art and Children’s Museum at 216 Grand Avenue. (Council
    Goal 3)
41. Complete 75% of renovation of the Federal Building utilizing $2.61 million of federal
    monies received for that purpose. (Council Goal 2)
42. Replace two public restrooms at City of Bellingham parks facilities. (Council Goal 3)
43. Complete construction of Depot Market Square to serve as the permanent home of the
    Bellingham Farmer’s Market and provide outdoor community space for other downtown
    events. (Council Goal 2)
44. Design and construct three projects that retrofit stormwater controls for water quality in
    Lake Whatcom watershed. (Council Goal 1)
45. Complete permitting and design phase for reconstruction of the Nooksack Diversion
    Dam that continues supply of drinking water and provides safe fish passage. (Council
    Goals 1 and 3)
46. Begin design and right-of-way acquisition for Phase II of Sunset Drive project. (Council
    Goals 4 and 5)
47. Implement system to update Public Works website with accurate data on projects under
    construction. (Council Goal 8)


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Departmental Objectives for 2006 (continued)

Inspection
48. Respond to all requests for permit inspections within one business day. (Council Goal
    7)
49. Respond to all construction-related inquiries by the public within one business day, and
    resolve concerns within 30 business days. (Council Goal 8)

Development Services
Development Administration
50. Coordinate all Water, Sewer, and Street Replacement Programs to ensure efficient
    installation and replacement programs. (Council Goal 5)
51. Administer planning and construction of all private development projects including short
    plats, subdivisions, street and utility extensions, and public works permits. (Council
    Goal 6)
52. Identify and pursue grant and loan opportunities for priority City projects as appropriate.
    (Council Goal 5)
53. Implement changes to the Permit Center to streamline and coordinate the permitting
    process. (Council Goal 7)
54. Continue to refine design standards in alignment with community ideals, such as low
    impact development, and develop City Center design standards. (Council Goal 2)
Transportation
55. Update Transportation Impact Fee schedule and the 6-Year Transportation
    Improvement Plan. (Council Goal 4)
56. Explore, prioritize, construct, and encourage transportation alternatives throughout the
    City including bike lanes, sidewalks, trails, safe school routes, and WTA facilities.
    (Council Goal 4)
57. Implement and monitor the City concurrency policies and programs in support of
    Council-approved growth scenarios. (Council Goal 4)
Water and Sewer Utilities
58. Begin implementation of recommendations contained in the updated Water
    Comprehensive Plan. (Council Goal 5)
59. Complete the Wastewater Comprehensive Plan and begin implementation of
    recommendations. (Council Goal 5)

Storm and Surface Water Utility Services
Stormwater Administration
60. Using the updated Stormwater Master Plan, develop 6-year and 20-year capital
    programs. (Council Goals 3 and 6)
61. Create and submit a compliance schedule for the Municipal Stormwater National
    Pollution Discharge Elimination System (NPDES) permit. (Council Goal 3)




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Departmental Objectives for 2006 (continued)

Project Development
62. Retrofit a three stormwater outfalls in the Lake Whatcom watershed to treat existing
    developed areas. (Council Goal 1)
63. Improve fish passage conditions at a minimum of one roadway crossing. (Council Goal
    3)
64. Assess water quality conditions of twenty percent of the stormwater outfalls within the
    city. (Council Goals 1 and 3)
Development Review and Inspection
65. Provide erosion control inspections for all new public and private development within the
    city. (Council Goals 3 and 6)
66. Provide a maintenance inspection of all private stormwater facilities within the city.
    (Council Goal 3)
67. Continue to study efficiencies and implement changes to stormwater review and
    inspection processes. (Council Goal 3)
Floodplain Management
68. Continue improving the FEMA Community Rating System to potentially lower floodplain
    insurance rates. (Council Goal 3)
Stormwater Education
69. Provide at least one public information session on stormwater management issues.
    (Council Goal 8)
70. Provide at least one workshop for developers and engineers regarding stormwater
    regulations. (Council Goal 8)
71. Provide public education on at least four stormwater topics. (Council Goal 8)
72. Revise stormwater web page and provide systematic updates to ongoing projects on the
    City website. (Council Goal 8)

Environmental Services
Policy
73. Implement updated Lake Whatcom Reservoir Management Program. (Council Goal 1)
74. Interpret and utilize watershed models from Utah State University and other consultants
    to assist lake management decisions. (Council Goal 1)
75. Complete climate protection audit and Phase I report. (Council Goal 3)
76. Conduct habitat research and project identification in Bellingham Bay through the
    Bellingham Bay Action Team. (Council Goal 3)
77. Complete Middle Fork interim instream flow negotiations. (Council Goal 1)
78. Construct Middle Fork Passage and Water Withdrawal Project. (Council Goal 1)
Education
79. Implement revised school education program. (Council Goals 1 and 8)
80. Provide community outreach programs in the Lake Whatcom watershed, with focus on
    engine restrictions, lawn care and land stewardship. (Council Goals 1 and 8)


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Departmental Objectives for 2006 (continued)

81. Produce 2006 Drinking Water Consumer Confidence Report. (Council Goals 1 and 8)
82. Provide public involvement and education support for Middle Fork instream flow
    negotiations, the Middle Fork Passage and Water Withdrawal Project, and the Middle
    Fork Habitat Conservation Plan. (Council Goals 1 and 8)
Restoration
83. Implement urban stream restoration elements of 2004 and 2005 Centennial grants.
    (Council Goal 3)
84. Implement Whatcom Creek habitat restoration projects. (Council Goal 3)
85. Develop a 6-year restoration project plan using Watershed Analysis Program. (Council
    Goal 3)

Property Management Services
Lake Whatcom Land Acquisition
86. Identify and purchase watershed properties as financing allows. (Council Goal 1)
87. Identify and implement best management practices for watershed properties purchased
    to date. (Council Goal 1)


2005 Objectives with Accomplishments

Administration
1. Implement a water quality protection program for City job sites. The program is focused
   at development of a Team Response Plan to ensure that waters of the state are
   protected when responding to emergencies and when conducting normal business. The
   challenge is to develop a new culture so that environmental resources are given equal
   concern and respect by staff. (Council Goal 3)

   Implementation of the program has been very successfully completed. It has been
   tested (such as in water line breaks) and has worked very well. The staff culture has
   changed, and the local Department of Ecology staff respect and support our program.

2. Move forward on Bellingham Bay cleanup strategies for the Cornwall landfill and Roeder
   landfill. (Council Goal 3)

   Significant accomplishments have been made in 2005, including purchase of the Colony
   Wharf properties, purchase of 49% interest in the property adjacent to the Cornwall
   Landfill, preparation and sale of the LTGO Bond, and completion of an interlocal
   agreement with the Port of Bellingham for coordinated remediation of the Cornwall,
   Roeder and Colony Wharf sites.




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2005 Objectives with Accomplishments (continued)

3. Review and analyze the business practices of the Department paying particular
   attention to customer service, processes, cost and staffing.

   This continues to be a priority. In 2005 the Fleet program was reviewed and the
   recommendations are being implemented. The Warehouse program was analyzed and
   the inventory software (recommended by the State Auditor) has been purchased,
   installed and put into service.

Environmental Services
4. Implement updated Lake Whatcom Reservoir Management Program.

   The 2005 Management Plan was implemented throughout the year and a report of the
   2005 accomplishments and the 2006 Management Plan was delivered to the joint
   councils and community in November.

5. Negotiate interim Middle Fork in stream flow.

   The technical component of this task has been slowed by delays in delivery of data
   models; however, significant progress was made towards resolution of the many
   procedural complications.

6. Expand community outreach programs in the Lake Whatcom watershed.

   Created and distributed two brochures: "Stormwater Solutions for Protecting Lake
   Whatcom" distributed through the Permit Center, Engineering front counter, the
   Bellingham Public Library and in lobby of City Hall; and "Lake Whatcom Land
   Acquisition Program" distributed to interested property owners.

   Eleven "Help Protect Lake Whatcom" signs with transportation related messages ("Ride
   Your Bike", "Fix Leaks", "Take the Bus", etc.) were placed in the watershed.

   An informational video on the phosphorus ban was produced for BTV10.

   A Lake Whatcom Management Plan tasks and accomplishments tabloid was inserted in
   the Bellingham Herald and sent to every resident in the Lake Whatcom watershed.

   Phosphorus ban display for businesses went to 11 businesses.

   Added "Hounds for Healthy Watershed" volunteer in Sudden Valley.

7. Produce 2005 Drinking Water Consumer Confidence Report.

   Every household and business that receives Bellingham drinking water received Pure
   Facts 2005 Consumer Confidence Report in June, 2005.




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2005 Objectives with Accomplishments (continued)

8. Implement urban stream restoration elements of 2005 and 2005 Centennial grants.

   Completed Lower Squalicum Creek riparian restoration and development of a site-
   specific water quality monitoring program. Also completed pre-construction tasks
   (engineered site design plans, and hydrologic studies as well as securing additional
   funding), for other Centennial projects.

9. Implement Whatcom Creek Total Maximum Daily Load (TMDL) Phase II.

   Funding for the development of the Detailed Implementation Plan and the Summary
   Implementation Plan has been secured. City staff has reviewed a draft of the Water
   Quality Improvement Plan for the Whatcom Creek Fecal Coliform TMDL and provided
   comments to the Department of Ecology.

10. Update all monitoring data in GIS layers of Watershed Analysis Program.

   This project is in its final phase and will be completed in 2006.

Additional Accomplishment for Environmental Services:

   The Middle Fork Diversion Dam Fish Passage and Alternative Intake Structure Project
   hydraulic and design feasibility studies were completed. Permits and construction
   design tasks have begun.

Treatment Plants
Post Point Pollution Control Plant
11. Complete a rating process for the treatment plant and obtain approval from the
    Department of Ecology for a higher rated design criteria rating (solids loading above
    27,100 pounds per day, biological oxygen demand (BOD) above 25,530 pounds per
    day, and a flow above 20 million gallons per day). (Council Goal 5)

   The City completed a re-rating study of the Post Point Wastewater Treatment Facility in
   2005 and received Department of Ecology approval for an increase in the total
   suspended solids rating from 27,100 pounds per day to 47,000 pounds per day. This
   approval secures capacity at the facility for the next two decades. The results of the
   study also define several operational improvements necessary that could then be used
   to increase the biological oxygen demand rating of the plant as well. The City has
   begun to implement these changes and will continue to do so in 2006.




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2005 Objectives with Accomplishments (continued)

Water Filtration Plant
12. Complete the Diversion Pipeline Program designed to better define the location of the
    pipe and determine locations and legal rights of pipeline easements. (Council Goal 1)

   The City’s diversion pipeline easement was completely surveyed and located in 2005.
   Additional easements were purchased to fill in areas that had been missing since the
   construction in the early 1960’s. By obtaining these easements and by mapping the
   easement boundary, the City now has a secure and definable corridor for one of its most
   important assets in the water supply system.

Additional Accomplishment for Water Filtration Plant:

   The City of Bellingham Department of Public Works Water Filtration Plant received its
   eighth consecutive Director’s Award in recognition of successful completion of Phase III
   self-assessment procedures of the Partnership for Safe Water from the United States
   Environmental Protection Agency and the American Water Works Association.

Water Utilities
13. Implement a strategic plan to enhance the City's water conservation program by using
    an incentive/rebate system, technology enhancements and an advanced education
    curriculum involving middle school students. (Council Goal 1)

   The Water Conservation Program succeeded in its education goal by offering
   conservation kits and information packets through the City’s Utility Education Outreach
   Program. This program provides tours of the Water Filtration Plant to 5th grade
   students with an exposure to water conservation that ultimately increase younger
   individuals’ awareness of sharing the watershed. Efforts are continuing on the creation
   of an incentive/rebate program for 2006.

14. Investigate and install state of the art technology for a radio read system for the City's
    water metering program.

   The City published a request for proposal to provide absolute encoder register and
   automated meter reading technology for the City’s water distribution system. The
   proposals are being evaluated and successful vendors will be asked to demonstrate
   equipment and software for implementation in the first quarter of 2006. This will
   increase the efficiency of the data collection and metering programs within the Public
   Works Department.




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2005 Objectives with Accomplishments (continued)

15. Initiate the voluntary metering program.

   The City adopted a voluntary metering program (VMP) that became effective January
   01, 2005. The program allows home owners the opportunity to install a meter on a flat-
   rate service for $150. The VMP has been widely championed throughout numerous
   organizations within the community and several other municipalities have asked for
   information regarding the City’s efforts so that they, too, may create such a program.

Maintenance Operations
Street Maintenance
16. Develop and implement an improved work management and maintenance program.

   A work management plan has been developed but needs 2005 year end data to set
   goals for implementation.

Sewer Utilities
17. Implement a proactive inflow and infiltration program that focuses on remediation by
    drainage basin and neighborhood.

   Data was collected via portable flow meters in 2005 and will continue to be collected in
   2006. Once all data is collected a program can be set up for remediation.

18. Develop a fats, oils and grease (FOG) control program that focuses on best
    management practices, removal systems and a monitoring procedure.

   Research of technologies and collection of some data was done in 2005. More data
   needs to be collected before an ordinance can be drafted for council approval.

Storm and Surface Water Maintenance
19. Implement a storm sewer scanning program to identify capital improvement projects and
    maintenance needs.

   Implementation was delayed due to the vendor of the scan van having to rewrite the
   software to meet our specifications. In late November a storm sewer scanning program
   was implemented and training of the scanner operators is ongoing.

20. Educate and train new hires in stormwater management and maintenance.

   The new hires on the stormwater crew have completed a years worth of training and
   they will continue to learn as new stormwater maintenance and management practices
   are introduced.




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2005 Objectives with Accomplishments (continued)

Clean Green
21. Implement a fee system to offset the rising operational costs for the City and the County.

   A $2 per load fee was implemented this year at the Clean Green Transfer Facility. A
   collection station was installed at the site and staff was trained in collection and
   accounting procedures. The implementation was successful and resulted in providing
   the program with the anticipated financial resources to keep this very popular program
   financially sound and ongoing.

22. Rewrite the inter-local agreement with the County to reflect a more even split in the cost
    of running and maintaining the yard waste transfer facility.

   A two year interlocal agreement between the City and County was signed and
   implemented. The agreement splits cost of running and maintaining the Clean Green
   Facility evenly between the City and County. The $2 per load fee revenue is also split
   evenly.

Purchasing, Materials Management and Financial Management
Financial Services
23. Improve the quality and accuracy of information produced by the Financial Services
    division.

   Reviewed procedures and tasks. Documented processes and established areas for
   improvement.

Purchasing
24. Design a vendor feedback program concerning issues related to procurement services,
    the bidding process and the Purchasing website, its use and usefulness. (Council Goal
    8)

   Developed vendor feedback form which has been distributed at bid openings to solicit
   input on website and procurement process.

25. Offer quarterly training classes for vendors to cover the bid process, bid and
    performance bonds, insurance certificates, and the completion of the bid documents.
    (Council Goal 7)

   At the annual vendor forum we provide training on how to complete a successful bid
   packet. We are currently soliciting feedback from vendors on what additional group
   training they would like to receive. We have begun to offer one-on-one training to any
   vendor who requests help.




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2005 Objectives with Accomplishments (continued)

Warehouse
26. Review the process for procurement of fleet parts by seeking alternate methods to
    reduce costs and streamline the process.

   This has been completed by an outside consultant and the suggestions currently being
   implemented should be completed by end of 2006.

Supervision and Technology
Data Services
27. Provide comprehensive pedestrian traffic information for planning and replacement
    activities. (Council Goal 4)

   This project is 80% complete and is expected to be finished by the end of 2006. At 80%
   completion the pedestrian traffic information (pedestrian model) maps sidewalk locations
   and conditions and provides a database for reporting repair and replacement needs. By
   the end of 2006 the pedestrian model will include a complete wheelchair ramp inventory.
   This additional information will provide maps and reports on ramp locations and ramp
   types. The combined sidewalk and wheelchair ramp data will provide an analysis tool
   for prioritization of ramp installations and replacements for compliance to ADA
   regulations.

28. Educate customers on our processes and potential through a segment on EGTV.
    (Council Goal 8)

   Worked with Black Dog Productions to create two educational films; one regarding
   meter reading and the employee who performs the job, and the other street condition
   rating including how and why we do it. Both films were a great success and they
   provided the public with an educational experience into some of the City's field data
   collection processes.

GIS/Technical Services
29. Reorganize the Public Works portion of the City website so that it is more user-friendly
    and has a topic-based format. (Council Goal 8)

   The entire Public Works portion of the City’s website was rebuilt and a new
   management process was implemented. The website was redesigned with the same
   layout (look & feel) and standards of all other City web pages. In that process the look
   of the Public Works home page was redesigned and a new topic based navigation
   system was developed. The management of the website was improved through the
   implementation of a streamlined process for content approval and posting. Content
   standards were developed to allow for more content providers and faster approval and
   posting of content.



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2005 Objectives with Accomplishments (continued)

Facilities Maintenance
30. Develop a five-year business plan for building maintenance.

   As a first step, a condition assessment on each of the buildings was initiated in 2005.
   Development of an improved computerized maintenance management system also has
   begun in order to better track costs and create meaningful histories. As anticipated, the
   condition assessment uncovered several problems requiring immediate corrective action
   and repair of these deficiencies has been the primary focus in 2005. Facilities
   information such as operation and maintenance manuals and building blue prints are
   being centralizing and a resource room has been created for these materials in the
   basement of City Hall.

31. Develop and implement a custodial inspection program to ensure the delivery of a level
    of appropriate customer service.

   Custodial Care Plans for all areas/buildings and have been completed and deployed in
   specific work areas on a trial basis for evaluation. These areas include: 911, Public
   Works Operations Warehouse, Fleet, and annex facilities, and the Records Center.
   Levels of performance initially established may need to be cut back due to reduction of
   custodial personnel and increased total areas of responsibility.

Fleet Services
32. Ensure that work performed provides safe and cost effective vehicles and equipment.
    (Council Goal 8)

   Review was completed by outside consultant. Internal processes are being
   strengthened and improved.

33. Improve communications with customers for better understanding of the services
    performed. (Council Goal 8):

   Staff meets regularly with customers to ensure customer satisfaction.

Property Acquisition and Facilities Management
Capital Facilities Group
34. Complete 75% of renovation of Federal Building utilizing $2.61 million of federal money
    received for that purpose. (Council Goal 2)

   Selected and executed an agreement with the architect for 20 Year Historic
   Preservation Plan as required by agreement with the National Parks Service,
   Washington State Historic Preservation Office, General Services Association. Draft
   report will be routed for staff input in December, 2005. Design for first phase of
   improvements will be completed in 2006.


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2005 Objectives with Accomplishments (continued)

35. Assist Public Facilities District with development of plans for new Children’s’ Museum
    and exhibition space at 216 Grand Avenue. (Council Goal 3)

   Contracted with Olson Sundberg Kundig Allen Architects in Seattle for design services.
   Schematic design completed and presented to PFD Board in December, 2005.

Watershed Property Acquisition
36. Identify and purchase watershed properties as financing allows. (Council Goal 1)

   Purchase of 200 acres under negotiation.

37. Identify and implement best management practices for watershed properties purchased
    to date. (Council Goal 1)

   Watershed Advisory Board recommendations for watershed property management were
   adopted by Council.

Engineering Services Group
Design and Construction Services
38. Complete the update to the City of Bellingham Development Guidelines and
    Improvement Standards to clarify and simplify requirements for private development
    projects (50% complete in 2005). (Council Goal 7)

   Standard Plans were all updated to reflect current standards and re-ordered to improve
   accessibility and comprehension. The text portion of the standards is still being
   reviewed and will be updated in 2006.

39. Manage, design, and construct capital improvements identified in the Summary of
    Department Capital-Related Needs program. (Council Goal 5)

   Successfully managed design and construction components of the program that
   included storm, water, sewer, street and facility projects. Significant projects include:
   a. Watershed-Three water quality retrofits to existing storm system, emergency power
       and system upgrades to sewer lift stations to prevent overflows.
   b. Traffic Safety-Two new traffic systems in Cordata area including Cordata/Westerly
       Roundabout and signal at Eliza and E. Bakerview Road.
   c. Water System-Major system upgrades to the King Mountain and South Hill areas are
       currently underway and will be completed in 2006.




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2005 Objectives with Accomplishments (continued)

40. Respond to all requests for permit inspections within one business day. (Council Goal
    7)

   Permit inspection requests are routinely responded to in one business day; however, we
   improved the administration of the permits by upgrading to a wireless connection
   between the field and the office.

41. Respond to all construction related inquiries by the public within one business day, and
    resolve concerns within 30 business days. (Council Goal 8)

   Construction-related public inquires are usually resolved in one business day. Concerns
   are resolved within 30 business days unless field or permit conditions preclude that
   option.

42. Implement changes necessary related to the Permit Center to streamline and coordinate
    the permitting process. (Council Goal 7)

   We have streamlined the routing process for private projects that include public facilities
   which has increased the efficiency of staff review time.

58. (Moved from Transportation Services Section.) Design and construct new pedestrian
    level lighting along the Holly Street and Railroad Avenue corridors. (Council Goal 2)

   Pedestrian-level lighting is being incorporated into the Depot Market Square project on
   Railroad Avenue between Chestnut and Maple Streets. It is anticipated that this theme
   will continue on the remainder of Railroad Avenue by retrofitting the existing system. A
   similar form of lighting will be incorporated on Holly Street as part of the streetscape
   project on Holly Street scheduled for construction in 2006.

60. (Moved from Transportation Services Section.) Develop and adopt a concurrency
    management ordinance to support growth scenarios approved by Council. (Council
    Goal 6)

   The draft Concurrency Ordinance has been prepared and reviewed in preparation for
   adoption by the City Council.

61 (Moved from Transportation Services Section.) Rewrite the circulation section of the
   City’s Comprehensive Plan to coincide with land use goals and policies adopted by
   Council in 2005. (Council Goal 6)

   The Transportation Element of the Comprehensive Plan has been rewritten to coincide
   with the Land Use Element, and has been reviewed by the Planning Commission and
   City Council in preparation for adoption by the City Council.




City Of Bellingham, Washington                                                      Page 271
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Public Works Department


2005 Objectives with Accomplishments (continued)

Storm and Surface Water Utility Management
43. Complete the update of the City Watershed Master Plan to reflect new stormwater
    practices and issues.

   This project is underway with the consultant in the process of remodeling the City
   stormwater systems. Due to data issues it is now scheduled to be completed by April
   2006.

44. Update the stormwater section of the City Code to reflect any regulatory requirement
    changes in the anticipated NPDES permit.

   Low Impact Development Code Change Committee has completed its work. Code is
   planned to come to Council in first quarter of 2006.

45. Retrofit four stormwater outfalls in the Lake Whatcom watershed to treat existing
    developed areas. (Council Goal 1)

   The stormwater discharge points to Lake Whatcom at Poplar Street, West Academy and
   Donald Avenue were completed. Treatment swales were constructed on a portion of
   Northshore Drive as well. The Park Place facility was retrofitted from a wet pond system
   designed to address metals to a sand filter for phosphorous.

46. Improve fish passage conditions at two roadway crossings.

   Four culverts along the Squalicum Truck Route were reconstructed for structural issues.
   Fish passage systems were installed on all four culverts.

47. Assess water quality conditions of twenty percent of the stormwater outfalls within the
    City.

   The program did additional testing on Silver Beach Creek as a follow up to last year.
   Padden Creek and Connelly Creek were dry weather monitored for illicit discharges.
   Several suspect areas have been discovered. Testing will continue in 2006.

48. Provide erosion control inspections for all new development within the City (public and
    private).

   Utilizing existing staff and extra labor the utility has provided at least one inspection for
   every development in the City. This includes single family residences and significant
   remodels. Enforcement actions were taken as required.

49. Provide a maintenance inspection of all private stormwater facilities within the city.

   A portion of the facilities have been inspected.




Page 272                                                     City Of Bellingham, Washington
                                                                       2006 Adopted Budget
                                                                   Public Works Department


2005 Objectives with Accomplishments (continued)

50. Study efficiencies and implement changes to stormwater review and inspection
    processes. (Council Goal 7)

   Procedures for all stormwater permitting and inspections were evaluated, mapped and
   revised. Computer tracking changes are being implemented.

51. Implement a GIS-based system for tracking floodplain information.

   Project moved to 2006 work plan.

52. Implement the FEMA Community Rating System to potentially lower floodplain
    insurance rates.

   Project not completed. Moved to 2006 work plan.

53. Provide at least one public information session on stormwater management issues.

   Stormwater staff partnered with other agencies on four sessions including NPDES,
   erosion inspection and stormwater maintenance.

54. Provide at least one workshop for developers and engineers regarding stormwater
    regulations.

   To be held the first quarter of 2006 prior to code changes being brought to Council.

55. Provide public education on at least four stormwater topics.

   Public education was provided on the following topics: dog waste reduction, car wash
   education, 5th grade program, NPDES issues, erosion control, stormwater maintenance.

Transportation Services
56. Standardize installation procedures for all communication equipment in EMS fleet
    vehicles.

   All fire apparatus and aid cars have been reconfigured with new headsets, VHF and 800
   radios. New specifications were written for police light bars and a uniform radio console
   has been developed and installed in all 2005 fleet vehicles. The same standards will be
   implemented with 2006 fleet replacements.




City Of Bellingham, Washington                                                    Page 273
2006 Adopted Budget
Public Works Department


2005 Objectives with Accomplishments (continued)

57. Complete City-wide inventory of communication equipment and develop a long range
    capital improvement plan.

   After completing an inventory of existing equipment and gathering information from key
   stakeholders around various City departments, a study was prepared for a City-wide
   Intelligent Transportation System Strategic Plan. This study will be used to develop long
   range capital facilities requests for the 2007 budget and beyond, and help establish a
   financing mechanism to ensure individual users are paying for their pro-rata use of the
   existing system and future expansion.

58. This item moved to Engineering Services section following item 42.

59. Begin a two-year project to rehabilitate the street lighting systems on “F” Street and
    Dupont Street.

   This project is underway and the existing supply of light standards purchased for 2005
   have been installed. The second phase of the project is included in the 2006 budget
   and will be completed throughout the remainder of next year.

60. Complete the traffic signal master cable replacement in the City Center to allow
    implementation of timing plans that are more pedestrian friendly. (Council Goal 2)

   The acquisition of the PUD’s fiber infrastructure in the downtown core has resulted in
   the ability to provide a fiber optic interconnect to the traffic signals as opposed to a new
   underground metallic copper cable, resulting in a more efficient system. Termination
   supplies have been acquired and partially installed, and the remainder of this project will
   be completed in 2006.

61. This item moved to Engineering Services section following item 42.

62. This item moved to Engineering Services section following item 42.

Parking
63. Consolidate all areas of parking services into one section and integrate parking with all
    areas of transportation planning. (Council Goal 4)

   This project is underway. The City Council adopted all of the goals outlined in the
   Parking Efficiency Report that was supported by both City staff and the Parking
   Commission. These goals are being implemented effective January 1st, 2006.




Page 274                                                   City Of Bellingham, Washington
                                                                     2006 Adopted Budget
                                                                 Public Works Department


2005 Objectives with Accomplishments (continued)

64. Install improvements to automate the collection of cash for daily and hourly parking at
    the parking garages, and implement new technology to replace parking meters.
    (Council Goal 2)

   Automated pay stations have been purchased and installed in the Parkade on
   Commercial Street, eliminating the need to staff a manual cash collection system. The
   same technology is also being used to slowly replace parking meters in dense areas of
   angle parking downtown. Six new units have been installed in the 1300 block of
   Railroad Avenue and will be operational in January 2006.




City Of Bellingham, Washington                                                      Page 275
2006 Adopted Budget
Public Works Department


Performance/Activity Measures

In the “05 Met” column, gray indicates that the 2005 Target is an estimate of activity only
and white indicates that the 2005 Target is a performance goal. If the white box is checked,
the goal was achieved.

  Performance /                 2003        2004             2005             2005        05         2006
  Activity Measure             Actual      Actual           Target           Actual       Met       Target


Public Works Administration Group
Public Works Employees
(FTE's)                         230.5         210.3            226.3              n/a                  228.9
Public Works Employees per
1,000 Population                  3.3          2.96             3.13              n/a                   3.12
Admin. Staff to Public Works
Employees                       4.1%          4.5%             4.2%               n/a                  4.2%
SAFETY
Lost-time injuries (operations)     6               4                0                4                      0

Treatment Plants Operations Group
WATER
 Estimated Costs to Treat
 1,000 gal Potable Water      $  0.26 $       0.23      $      0.23      $      0.24            $      0.24
 Millions of Gallons of Water
 Treated per Day                 10.20        10.39            10.65             9.79                  10.92
 Clarity Levels of Treated
 Water (EPA Standard 0.3)         0.03         0.03             0.03             0.03                   0.03
 Compliance with State and
 Federal Drinking Water
 Regulations                    100%          100%             100%             100%                   100%
WASTEWATER
 Solids Discharges mg/l             9.1         7.7              7.7              7.1                    7.5
   Percent Removed              95.4%        96.1%            96.3%            96.3%                 100.0%
 Organics Discharged mg/l           10           10               10                9                      9
   Percent Removed              94.6%        94.9%            94.9%            95.0%
 Plant Flow - Millions of
 Gallons per Day                 11.89        12.53            12.75            11.80                  12.50
 Sludge Incineration - Tons      3,923        4,003            4,125            4,141                  4,200

Water Utility Operations Group
Repairs per 100 Mi of Water
Main (Natl Ave = 27)           6.10            6.11             7.00             7.25                   7.24
Customer Service Requests     1,157           1,486            1,600            1,145                  1,680
Number of Water Services     24,628          24,601           25,339              n/a                 26,099

Some 2005 actuals are listed as n/a because these statistics are not yet available.




Page 276                                                       City Of Bellingham, Washington
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                                                                                           Public Works Department


Performance/Activity Measures (continued)


  Performance /                             2003             2004            2005             2005           05       2006
  Activity Measure                         Actual           Actual          Target           Actual          Met     Target


Maintenance Operations Group
ROADWAY MAINTENANCE
 Paved Maintained Roadway      276.00                          278.00           280.00             289.00              282.00
 Road Maintenance Staff           8.0                             8.0              8.0                7.0                 7.0
 Miles Swept per Staff Hour      1.87                            3.40             3.50               2.07                3.50
 Customer Service Requests
 on Street Problems              661                               662              650               865                  650
DRAINAGE
 Feet of Ditching per Hour     172.00                          204.00           200.00              154.00             200.00
 Catch Basins per Staff**   * 1,900.0                         1,967.0          2,124.0             1,318.0
 Customer Service Requests       327                              180              160                212                  160
    *Increased staff by 5 FTE's in 2003   ** Includes catch basins, manholes, & inlet structures
COLLECTION
Sewer main lines cleaned bi-annually to remove accumulated grease and sediments.
 Miles of Sewer Main Lines             50.65      51.00        51.50       54.00                                         52.00
 Main Line Cleaning, Ft per 8
 Hr Staff Day, (Goal = 4,250)          2,885      4,400        4,000       2,571                                        *6,000
    * New Jet Vac purchased in 2005
  Customer Service Requests                      110               95              100                  96                100
  Number of Sewer Services                    23,137           22,745           23,150                 n/a             23,500

Purchasing, Materials Management and Financial Management Groups
Supplies and Equipment
Purchased for Resale     $ 2,948,422 $ 3,016,703 $ 3,094,548 *2,951,674                                            $ 3,200,000
Bids Issues                      142         131         144         133                                                  150
Orders Processed              42,325      40,935      41,000      40,497                                               40,000
  * Non-stock items are no longer passing through Purchasing; expenses are being charge directly to Departments.


Supervision and Technology Group
Metered Water Services       7,582                             *7,047            7,684                 n/a               8,321
Meter Reading FTE's             1.2                                1.2              1.2                1.2                  1.2
Computers and Related
Technological Devices          255                                 314              325               325                  330
GIS Users- Citywide            103                                 158              181               181                  200
  *Short Staffed


Some 2005 actuals are listed as n/a because these statistics are not yet available.




City Of Bellingham, Washington                                                                                      Page 277
2006 Adopted Budget
Public Works Department


Performance/Activity Measures (continued)


 Performance /                            2003            2004        2005       2005      05      2006
 Activity Measure                        Actual          Actual      Target     Actual     Met    Target


Facilities Group
Maintenance Staff                                3               3          3          3                  3
Maintenance Work Orders                      1,646            *701      1,800      1,384              2,000
Custodial Staff                               11.5            10.5       10.5       10.5               10.2
Sq. Ft. per Custodial FTE                   17,784          16,441     16,211     16,211           **22,288
Utility Cost per Sq. Ft. of
Maintained Building                           $1.54          $1.86      $1.37      $1.48              $1.20
 * Short Staffed   ** Combined Custodial & Maintenance Sq. Ft.


Solid Waste Operations Group
LITTER CLEANUP
  Citizen Inquiry Reports                * 98          151            274            274               200
  Tons of Litter                       19.48         20.21             26             26                27
    *Personnel transferred to Police Dept. in 2003 (using different system)
YARD WASTE COLLECTION
  Tons Waste                           5,454         5,381          5,500          4,727             5,500
  Number of Customers                 57,262        53,470        52,000          35,603            52,000

Engineering Services Group
Developer Projects Processed         47        62        65        42                                      65
Water - Service Zones
Extended                              1         1         2         2                                      2
Wastewater - Service Zones
Extended                              1         2         2         2                                      2
Transportation Impact Fees
Collected                    $ 664,940 $ 889,224 $ 600,000 $ 907,063                             $ 900,000

Transportation and Communications Services Group
Traffic Signs Maintained     9,893  10,237     10,487                            10,510             10,800
Traffic Signs Installed        344     250        313                               268                300
Street Lights Maintained     3,173   3,200      3,260                             3,264              3,300
Radios Maintained               n/a  2,049      2,149                             2,306              2,249
Miles Fiber Cable Maintained    n/a     35         67                                67                 80




Page 278                                                                City Of Bellingham, Washington
                                                                                  2006 Adopted Budget
                                                                                   Public Works Department


Performance/Activity Measures (continued)


 Performance /                            2003            2004         2005           2005        05         2006
 Activity Measure                        Actual          Actual       Target         Actual       Met       Target


Parking and Downtown Services Group
Permitted parking spaces
available                        939    939                                773             606                  605
Permitted parking spaces sold    689    705                                729             632                  590
Average annual occupancy -
permitted spaces                 73%    75%                                94%            104%                  98%
Metered parking spaces
maintained - individual        1,243  1,248                              1,260           1,260                1,300
Metered parking spaces
maintained - pay station         -      -                                   99             -                     30
Hourly customers served       18,102 18,646                             19,205          21,672               19,782
Average annual occupancy -
garages                          73%    77%                               104%            112%                 115%
Average annual occupancy -
lots                             72%    73%                                86%             72%                  95%

Engineering Construction and Capital Improvements Groups
Capital Projects                      27         29        30       24                                            30
Capital Projects - $ Millions $   13.00 $   15.00 $   11.40 $    9.80                                   $     22.70
Street Resurfacing, Cost per
Mile                            $664,610  $763,000  $400,000  $193,818                                      $400,000
Miles of Street Resurfaced          2.11       6.60      5.60     4.90                                         10.00
Linear Feet of Storm Water
Pipe Installed                     1,687     4,380     2,500     5,704                                         3,000
Feet of Water Main Replaced        6,412    21,089    *3,910     3,679                                        *7,819
Replacement Cost per Foot of
Water Main                    $      84 $     103 $     110 $     193                                   $       110
Feet of Wastewater Main
Replaced                           4,667    12,351    *7,850     8,181                                       *13,743
Wastewater - Cost per Ft. of
Pipe, Improve & Replace              $50      $129      $180      $185                                          $130
 *Assumes 1/3 of 2005 program is installed in 2005, balance in 2006


Watershed Services and Acquisition Group
Current Acquisitions - Acres         50        196         100                              0                   100
Cost of Acquisition by Year  $2,410,599 $1,378,241 *$3,000,000                     **$545,753           *$3,000,000
Cumulative Acres Acquired           787        983       1,083                            984                 1,183
 *Includes $500,000 Denke property payment and $2.5M bond funding.    **$2.5M bond in 2006, not 2005.




City Of Bellingham, Washington                                                                              Page 279
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Page 280                                        City Of Bellingham, Washington
                                                          2006 Adopted Budget
                                                                             Capital Budget


                               2006 CAPITAL BUDGET

The Capital Budget begins with the budget year expenditures. Expenditures must be at
least $5,000 for a single item to be considered “Capital”.

The next section is the Capital Facilities Plan (CFP), which includes the budget year plus a
five-year estimate of capital facilities needs. Estimates for years 2007 through 2011 are
provided for review and planning purposes, but are not authorized with the 2006 Budget.

The CFP includes construction, acquisition or maintenance of facilities or infrastructure.
These expenditures may include project support costs such as engineering,
intergovernmental or outside services, and supplies. Purchases of equipment and minor
improvements also have been included in the CFP for 2006-2011.


Capital Reconciliation

The Capital Budget includes all expenditure types for capital related needs, regardless of
whether they meet the accounting definition of capital outlay. This table shows a
breakdown of the expenditure types that are included in the Capital Budget on the following
pages.

  EXPENDITURE TYPE                                                            2006 BUDGET
  Capital Purchases                                                          $   46,135,235
  Salaries                                                                           25,678
  Benefits                                                                            8,256
  Supplies                                                                           13,000
  Other Services and Charges                                                      3,470,979
  Intergovernmental Services                                                      2,216,092
  Interfund Payments                                                                804,500
  TOTAL CAPITAL BUDGET                                                      $    52,673,740




City Of Bellingham, Washington                                                     Page 281
2006 Adopted Budget
Capital Budget


2006 Capital


                                       FUNDING SOURCES

             Abbreviations in the "Fund Source" columns represent the following funds

   FUND      FUND NAME                                                             2006 BUDGET
AFDE       Asset Forfeiture/Drug Enforcement Fund                                 $        36,000
ASF        Arterial Street Fund                                                           300,000
BGL        Beyond Greenways Levy Fund                                                   1,452,500
BOND       Bond Proceeds to Water Fund                                                  5,000,000
CDBG       Community Development Block Grant Fund                                         187,648
CIVIC      Civic Field Improvement Fund                                                Transfers In
CMF        Capital Maintenance Fund                                                       259,300
CRF        Computer Reserve Fund                                                          526,000
DISP       Public Safety Dispatch Fund                                                     15,000
DOE        State Department of Ecology Grant                                            1,600,000
DSF        Development Services Fund                                                       35,000
FEMA       Federal Emergency Management Administration Grant                              303,287
FHWA       Federal Highway Administration Grant                                         1,992,000
FL         Fleet Administration Fund                                                    1,906,000
FQET       First 1/4% Real Estate Excise Tax Fund                                       3,446,750
GF         General Fund                                                                   208,409
IAC        State Interagency Committee for Outdoor Recreation Grant                       300,000
ISPK       State or Local Intergovt Service for Park Facilities                           500,000
ISST       State or Local Intergovt Service for Road/Street Construction                  340,000
ISWA       State or Local Intergovt Service for Water Construction                      1,600,000
LOAN       Intergovt Loan Proceeds                                                      3,400,000
MED1       Medic One Fund                                                                 144,640
PFD        Public Facilities District Fund                                              2,398,000
PKA        Parksite Acquisition Fund                                                       30,000
PRK        Parking Services Fund                                                          230,000
SOL        Solid Waste Fund                                                             2,970,000
SQUAL      Squalicum Park/Olympic Fund                                                 Transfers In
SQET       Second 1/4% Real Estate Excise Tax Fund                                      3,016,592
STR        Street Fund                                                                  7,920,000
SWUF       Surface Water Utility Fund                                                   1,035,000
TEL        Telecommunications Fund                                                         80,000
WF         Water Fund                                                                   1,613,000
WFWS       Water Fund - Watershed                                                       3,059,000
WWF        Wastewater Fund                                                              6,769,614

 ALL        TOTAL                                                                 $     52,673,740




Page 282                                                       City Of Bellingham, Washington
                                                                         2006 Adopted Budget
                                                                            Capital Budget


2006 Capital (continued)



 2006 Capital Funding Sources
                                                         Internal Service Funds
                                                                   4%

                                                                  Bonds
                                                                   9%


                               Enterprise Funds
                                     31%                         Federal Grants
                                                                      4%

    General and Reserve
          Funds
            2%                  Other Special                    State and Intergovt
                               Revenue Funds                     Grants and Loans
                                    19%                                 15%




                                                  Street Funds
                                                      16%




 Capital Expenditures by Department
      Total Capital $52,673,740

                                                  Parks, $6,082,355




                                                          PFD, $2,398,000


                                                             Judicial and
                                                           Support Services,
                                                              $1,600,000

               Public Works,                                          All Other
                $39,818,159                                         Departments,
                                                                     $2,775,226




City Of Bellingham, Washington                                                         Page 283
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                              Fund                                                          2006
Capital Item                 Source Description and Justification                          Budget

FIRE DEPARTMENT
                                     Remodel to improve facility security and
Headquarters Office          MED1/   customer traffic flow in the Dispatch, EMS and
Remodel                      FQET    Fire administrative office spaces.                       60,000
Indian Street Fire Station
Upstairs Carpeting           FQET    Regularly scheduled replacement.                          6,000
Northwest Fire Station
Painting                     FQET    Regularly scheduled maintenance.                         15,000

Rechassis Medic Unit         MED1    Rechassis an ambulance based on total miles.             94,640
                                     Additional vehicle needed for planned return of
Staff Car                    MED1    Paramedic Training Coordinator.                          50,000
                                     Incremental addition of one camera per year to
Thermal Imaging Camera        GF     equipment fleet.                                         12,000
*Vehicle Diesel Exhaust      FEMA/   Dependent on award of 80% federal grant
Capture Systems               GF     share.                                                  379,109

TOTAL CAPITAL BUDGET FOR 2006 - FIRE                                                   $    616,749

* See project summary following this table.




Page 284                                                       City Of Bellingham, Washington
                                                                         2006 Adopted Budget
                                                                                      Capital Budget


2006 Capital (continued)


                          VEHICLE DIESEL EXHAUST CAPTURE SYSTEMS
                                        at Fire Stations

Project Description

Install diesel exhaust point capture systems in all fire stations. Systems capture and remove emergency
vehicle diesel exhaust to safeguard health and safety of employees. An exhaust removal system, including
hoses designed to attach to vehicle exhausts, will be installed at each of the six fire stations. All fire
stations will be retrofitted at one time to take advantage of grant from Federal government. The FEMA
Assistance to Firefighters Grant covers 80% of the anticipated $379,109 cost of the project. City share of
project is 20% or $75,821.


Budgeted Revenues and Sources               Received as           2005           2006            Total
                                             of 12/31/04         Budget         Request
FEMA Assistance to Firefighters Grant                    -                -       303,288         303,288
General Fund                                             -                -        75,821          75,821
Total Budgeted                              $            -   $            -   $   379,109   $     379,109

Budgeted Expenditures and Uses               Spent as of          2005           2006            Total
                                              12/31/04           Budget         Request
Other Machinery and Equipment                           -                 -       379,109         379,109
Total Budgeted                              $           -    $            -   $   379,109   $     379,109

Estimated Impact on Operating Budget
Approximately $3,500 per year maintenance cost increase for preventative maintenance and minor repairs
if needed.




City Of Bellingham, Washington                                                                  Page 285
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                                Fund                                                             2006
Capital Item                   Source Description and Justification                             Budget

POLICE DEPARTMENT
                                         Upgrade computer access to the Department
                                         of Licensing, the Washington State Information
                                         Center and the National Crime Information
Access upgrade                  DISP     Center.                                                   15,000
                                         Anticipated replacement of three undercover
Undercover Vehicles            AFDE      vehicles.                                                 36,000

TOTAL CAPITAL BUDGET FOR 2006 - POLICE                                                      $      51,000



JUDICIAL AND SUPPORT SERVICES DEPARTMENT
*Jail Construction - City
Contribution              FQET City share of jail construction cost.                             1,600,000

TOTAL CAPITAL BUDGET FOR 2006 - JUDICIAL AND SUPPORT SERVICES                               $   1,600,000

* See project summary following this table.


                                             JAIL CONSTRUCTION
                                               City Contribution

Project Description

City share of new jail construction costs.


Budgeted Revenues and Sources                  Received as           2005            2006          Total
                                                of 12/31/04         Budget         Request
First Quarter REET Fund                                     -                -      1,600,000     1,600,000
Total Budgeted                                 $            -   $            -   $ 1,600,000    $ 1,600,000

Budgeted Expenditures and Uses                  Spent as of          2005            2006          Total
                                                 12/31/04           Budget         Request
Other Intergovernmental Services                           -                 -      1,600,000     1,600,000
Total Budgeted                                 $           -    $            -   $ 1,600,000    $ 1,600,000

Estimated Impact on Operating Budget
The City is currently in negotiations with Whatcom County, which will determine the operating impact. This
investment is intended to reduce the General Fund costs for the jail.




Page 286                                                              City Of Bellingham, Washington
                                                                                2006 Adopted Budget
                                                                                     Capital Budget


2006 Capital (continued)


                             Fund                                                        2006
Capital Item                Source Description and Justification                        Budget

PARKS AND RECREATION DEPARTMENT
                                  Convert trails through watershed properties
                            SQET/ between Big Rock Open Space and Northridge
*Big Rock Area Trails        STR  Park.                                                   215,000
*Civic Field Storage
Building and Track                Storage building and track resurfacing at Civic
Resurfacing                 SQET Field.                                                   200,000
                            WWF/
*Civic Athletic Complex     SQET/
Improvements                CIVIC Upgrade Civic Field facility and restrooms.            1,031,455
Copier - Aquatics             GF  Replacement schedule.                                     10,600
                                  Replacement of a 1970 fleet rental van now
                                  serving as a crew vehicle for Forestry crew.
                                  Need new van set up for forestry maintenance
                                  practices. Forestry crew is responsible for tree
Fleet Addition - Forestry         hazard removals and emergency storm
Crew Service Vehicle          GF  response.                                                35,000
                                  Trail and ROW mowing attachment for fleet
Fleet Addition - Mower            replacement vehicle where funds were not
Attachment                    GF  available for the mowing attachment upgrade.              6,500
                                  Replacement of existing 30 year old sports
*Geri Field Sports Lighting       lighting system with updated shielded sports
Renovation                  SQET lighting fixtures.                                       350,000
                                  Supplies and materials to renovate and modify
Irrigation System                 existing manual irrigation systems to automatic
Renovations                  CMF systems.                                                  15,000
Labor Reimbursement for           Staff salary and benefit reimbursement for time
Qualified Projects - BGL     BGL  spent on qualified projects.                             42,500
Labor Reimbursement for           Staff salary and benefit reimbursement for time
Qualified Projects - SQET   SQET spent on qualified projects.                              58,000
*Land Acquisition -
Greenway Program             BGL  Acquire land identified in Greenway Program.            600,000
*Land Acquisition -
Neighborhood Park in         PKA/ Acquire neighborhood park in North
North Bellingham            FQET Bellingham.                                              965,000
                                  Completion of the Bayview Mausoleum
Mausoleum Interior                renovation project, this phase will allow for a
Renovation                   CMF new sales revenue source.                                 80,800
Park and Sports Field             Replacement of sports and park lighting lamps
Lighting                    FQET based on a 6 year replacement cycle.                       5,000

* See project summary following this table.




City Of Bellingham, Washington                                                            Page 287
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                            Fund                                                       2006
Capital Item               Source Description and Justification                       Budget

PARKS AND RECREATION DEPARTMENT (continued)
                                  Supplies and materials for the upgrading and
                                  replacement of park entrance and informational
Park Sign Replacement       CMF signs.                                                     5,000
*Playground Renovation -
Franklin and Carl Lobe            Playground renovation at Franklin and Carl
Parks                       SQET Lobe Parks.                                            217,500
Plumbing Equipment -              Remote video camera used in stormwater and
Remote Pipe Video                 wastewater applications for location of breaks
Camera                        GF  and obstructions in small diameter pipes.                8,000
Parks Facility Asphalt            Patching and overlay of Park roads, parking
Patching and Resurfacing    SQET lots and pathways.                                       60,000
Playground Equipment              Replacement components for damaged
Parts                       CMF playground structural elements.                            5,000
Reconnection of Electrical        Replace the power service to park light. Power
Supply to Park Light in           service was terminated when new lanes were
Rockhill Park               FQET added to the adjacent I-5.                                5,000
                                  Supplies and materials for the replacement of
Roof Replacements           FQET aging park facility roof and gutters.                    10,000
Sidewalk & Curb                   Replacement of damaged and cracked park
Replacement                 FQET sidewalk and curb sections.                              10,000
                             IAC/
                           SQUAL/
                           SQET/
*Squalicum Creek Park       WWF Develop Squalicum Creek Park.                           600,000

                                    Supplies and materials for the continued
Trail Surface/Drainage              resurfacing and drainage system replacement
Repairs                     FQET    of trail surfaces and associated drainages.           15,000
                                    Installation. Salary reimbursement to General
Trailhead Signs            FQET     Fund.                                                 22,000
                           ISPK/    Racine to Ellis. Salary reimbursement to
*Whatcom Creek Trail        BGL     General Fund.                                      1,310,000
                           WWF/     Restrooms at Whatcom Falls Park to be
*Whatcom Falls Restroom    SQET     reimbursed by Wastewater Fund.                      200,000

TOTAL CAPITAL BUDGET FOR 2006 - PARKS AND RECREATION                                $ 6,082,355

* See project summary following this table.




Page 288                                                      City Of Bellingham, Washington
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2006 Capital (continued)


                                        BIG ROCK AREA TRAILS

Project Description

Construct a trail connecting Big Rock Garden to the Klipsun Trail. This will provide access from the Silver
Beach Neighborhood to Northridge Park and the Railroad Trail.




Budgeted Revenues and Sources               Received as           2005           2006             Total
                                             of 12/31/04         Budget         Request
Second Quarter REET Fund                                 -                -        15,000           15,000
Street Fund                                              -                -       200,000          200,000
Total Budgeted                              $            -   $            -   $   215,000    $     215,000

Budgeted Expenditures and Uses               Spent as of          2005           2006             Total
                                              12/31/04           Budget         Request
Sidewalks, Paths and Trails                             -                 -       200,000          200,000
Interfund Professional Services                         -                 -        15,000           15,000
Total Budgeted                              $           -    $            -   $   215,000    $     215,000

Estimated Impact on Operating Budget
Increased staff and equipment hours for trash pickup, vandalism repair, vegetation management and trail
maintenance will cost $1,364 per year based on an estimated 1,500 linear feet of new trail.




City Of Bellingham, Washington                                                                   Page 289
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                   CIVIC FIELD STORAGE BUILDING AND TRACK RESURFACING

Project Description

Track Resurfacing:
The track at Civic was last replaced in 2000 when the new field turf was installed. Resurfacing and
repainting the lanes is needed approximately every five years.




Storage Building:
Construct a free standing storage building at Civic Athletic complex to replace storage impacted by the
renovation of Civic Stadium and Joe Martin Field.




Page 290                                                          City Of Bellingham, Washington
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2006 Capital (continued)


Civic Field Storage Building and Track Resurfacing (continued)

Budgeted Revenues and Sources               Received as           2005           2006            Total
                                             of 12/31/04         Budget         Request
Second Quarter REET Fund                                 -                -       200,000         200,000
Total Budgeted                              $            -   $            -   $   200,000   $     200,000

Budgeted Expenditures and Uses               Spent as of          2005           2006            Total
                                              12/31/04           Budget         Request
Construction-Athletic Fields                            -                 -       200,000         200,000
Total Budgeted                              $           -    $            -   $   200,000   $     200,000

Estimated Impact on Operating Budget
No impact on operating budget for the track resurfacing portion of this project. There also should be no
impact on the operating budget for the addition of the new storage building. Existing storage under the
grandstands at Civic Stadium will be displaced by locker room expansion and at Joe Martin by restrooms
and concessions.




City Of Bellingham, Washington                                                                  Page 291
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2006 Capital (continued)


                           CIVIC ATHLETIC COMPLEX IMPROVEMENTS

Project Description

Implement improvements to the Civic Athletic Complex including new locker rooms, improved ADA
access, remodeled restrooms and concession areas, parking lot improvements, skatepark expansion, and
turf improvements at Joe Martin Stadium.




`




Estimated Project Total                                                                        Amount
2003/2004 Actual                        Joe Martin Baseball Complex: Field Upgrade,
                                        Restroom Renovation and Grandstand Roof
                                                                                                 651,772
2005 Revised Budget                     Civic Complex Improvements: Civic Field
                                        Stadium and Restroom Improvements, Joe
                                        Martin Stadium and Restroom Improvements,
                                        Installation of Field Turf at Joe Martin, Phase II
                                        Improvements to Skatepark                               7,403,290
                                        Civic Field Parking Lot Improvements                    2,060,000
2006 Adopted Budget                     Civic Athletic Upgrade and Restrooms                    1,031,455
Estimated Project Total                                                                      $ 11,146,517




Page 292                                                        City Of Bellingham, Washington
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2006 Capital (continued)


Civic Athletic Complex Improvements (continued)

Budgeted Revenues and Sources               Received as          2005          2006             Total
                                             of 12/31/04       Revised        Request
Beyond Greenway Fund                                     -        300,000             -          300,000
First Quarter REET Fund                          500,000                -             -          500,000
Second Quarter REET Fund                                 -              -       400,000          400,000
Sewer Fund                                        50,000          740,000       631,455        1,421,455
Street Fund                                      200,000        2,060,000             -        2,260,000
Capital Maintenance Fund                          80,000                -             -           80,000
Civic Field Improvement Fund                      38,550           35,012             -           73,562
Bond Funds                                     6,111,500                -             -        6,111,500
Total Budgeted                              $ 6,980,050      $ 3,135,012    $ 1,031,455     $ 11,146,517


Budgeted Expenditures and Uses               Spent as of         2005          2006             Total
                                              12/31/04         Revised        Request
Engineering Services                             599,310          407,913             -        1,007,223
Construction - Athletic Fields                    39,442        9,024,877     1,031,455       10,095,774
Project Labor Reimbursement                       12,925           30,500             -           43,425
Other Professional Services                           95                -             -               95
Total Budgeted                              $    651,772     $ 9,463,290    $ 1,031,455     $ 11,146,517


Estimated Impact on Operating Budget
This project will develop a new free-standing locker room, additional restrooms, and an expansion of the
skatepark which will increase maintenance. This will be offset, however, by the improvements made to
this aging facility which will save capital maintenance dollars.




City Of Bellingham, Washington                                                                Page 293
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2006 Capital (continued)


                             GERI FIELD SPORTS LIGHTING RENOVATION
                                      5-Year Replacement Cycle

Project Description

Includes replacement of field lighting controls, installation of new underground wiring to light poles,
replacement and modification of existing wooden poles, installation of new shielded light fixtures and
remote ballast, addition of new security lighting, aiming and balancing field lighting system.

The existing sports field lighting at the Frank Geri Field complex for Fields 1, 2 and 3 was installed in the
early 1970's. With the effects of weather and age, various components of the system including light
fixtures, brackets, ballast, and ground to pole connections have failed. Repairs to the lighting system are
complicated because of specialized equipment needed to reach the height of the equipment on the poles
and because of access across the ball field turf. In some instances, repairs to non-functioning light
fixtures have taken months. With the increased frequency of lighting repairs and the delay in repairs, the
effective sports lighting has been reduced to an unsafe level. Some fields may need to be limited to only
day use based on the condition of the lighting. Renovation of the Geri 1,2 and 3 fields is needed to
continue to meet the demand for lighted ball fields.




Page 294                                                            City Of Bellingham, Washington
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2006 Capital (continued)


Geri Field Sports Lighting Renovation (continued)

Budgeted Revenues and Sources                Received as           2005           2006             Total
                                              of 12/31/04         Budget         Request
Second Quarter REET Fund                                  -                -       350,000          350,000
Total Budgeted                               $            -   $            -   $   350,000    $     350,000

Budgeted Expenditures and Uses                Spent as of          2005           2006             Total
                                               12/31/04           Budget         Request
Lighting Systems                                         -                 -       350,000          350,000
Total Budgeted                               $           -    $            -   $   350,000    $     350,000

Estimated Impact on Operating Budget
The renovation of the sports lighting will reduce the amount of time spent by staff in making the repairs to
the existing sports lighting system or arranging for outside contractors when specialized equipment is
required for the repair. In addition, the upgrade of the control system and remote ballast will make repairs
in the future easier and less time demanding.




City Of Bellingham, Washington                                                                    Page 295
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                                         LAND ACQUISITION
                                         Greenway Program

Project Description

Acquire land in areas identified in the Beyond Greenway Levy.




Page 296                                                        City Of Bellingham, Washington
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2006 Capital (continued)


Land Acquisition - Greenway Program (continued)

Budgeted Revenues and Sources                Received as        2005            2006             Total
                                              of 12/31/04      Budget          Request
Beyond Greenway Levy                           10,065,594        200,000         600,000       10,865,594
Total Budgeted                               $ 10,065,594    $   200,000     $   600,000     $ 10,865,594

Budgeted Expenditures and Uses                Spent as of       2005            2006             Total
                                               12/31/04        Budget          Request
Land Acquisition                               10,065,594        200,000         600,000       10,865,594
Total Budgeted                               $ 10,065,594    $   200,000     $   600,000     $ 10,865,594

Estimated Impact on Operating Budget
With the acquisition of new park property, new maintenance responsibilities will impact the operating
budgets. New staff hours will be needed to respond to trash and vandalism problems associated with
vacant land in an urban environment. In addition, the character of the land (grassland, wetland, forest,
etc.) will require staff and equipment time for vegetation management.




City Of Bellingham, Washington                                                                  Page 297
2006 Adopted Budget
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2006 Capital (continued)


                            LAND ACQUISITION - NEIGHBORHOOD PARK
                                  2006 Project: North Bellingham

Project Description

Acquire land for a neighborhood park in the north part of Bellingham.




Budgeted Revenues and Sources               Received as           2005           2006           Total
                                             of 12/31/04         Budget         Request
First Quarter REET Fund                                  -                -       935,000        935,000
Parksite Acquisition Fund                                -                -        30,000         30,000
Total Budgeted                              $            -   $            -   $   965,000   $    965,000
2007-2011 Estimated Need:
First Quarter REET Fund for 2007 through 2011.                                                1,503,080
Estimated Total Revenue                                                                     $ 2,468,080




Page 298                                                           City Of Bellingham, Washington
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2006 Capital (continued)


Land Acquisition - Neighborhood Park in North Bellingham (continued)

Budgeted Expenditures and Uses                Spent as of        2005            2006             Total
                                               12/31/04         Budget          Request
Land Acquisition                                         -                -       955,000          955,000
Interfund Professional Services                          -                -        10,000           10,000
Total Budgeted                               $           -   $            -   $   965,000    $     965,000
2007-2011 Estimated Need:
Land acquisition costs for additional parkland in 2009 and 2010.                               1,450,000
Project labor reimbursements for 2007 through 2011.                                               53,080
Estimated Total Expenditures                                                                 $ 2,468,080

Estimated Impact on Operating Budget
With the acquisition of new park property, new maintenance responsibilities will impact the operating
budgets. New staff hours will be needed to respond to trash and vandalism problems associated with
vacant land in an urban environment. In addition, the character of the land (grassland, wetland, forest,
etc.) will require staff and equipment time for vegetation management.




City Of Bellingham, Washington                                                                   Page 299
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2006 Capital (continued)


                                     PLAYGROUND RENOVATION
                                     Franklin and Carl Lobe Parks

Project Description

Playgrounds at Franklin and Carl Lobe parks have exceeded their lifespan and are in need of
replacement. The existing playgrounds do not meet current standards set by the Consumer Product
Safety Commission for playground safety or Americans With Disabilities Act guidelines for accessibility.




Budgeted Revenues and Sources               Received as           2005           2006            Total
                                             of 12/31/04         Budget         Request
Second Quarter REET Fund                                 -                -       217,500         217,500
Total Budgeted                              $            -   $            -   $   217,500   $     217,500

Budgeted Expenditures and Uses               Spent as of          2005           2006            Total
                                              12/31/04           Budget         Request
Construction-Playgrounds                                -                 -       200,000         200,000
Interfund Professional Services                         -                 -        17,500          17,500
Total Budgeted                              $           -    $            -   $   217,500   $     217,500

Estimated Impact on Operating Budget
Replacement of the playgrounds will not impact the operating budget as they are already being
maintained.




Page 300                                                           City Of Bellingham, Washington
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2006 Capital (continued)


                                      SQUALICUM CREEK PARK
                                        Phase I Development

Project Description

Develop Phase I of Squalicum Creek Park including construction of one unlighted ballfield, restroom,
parking, open grassy area, and related support facilities.




Estimated Project Total                                                                       Amount
2003 Revised Budget                        Squalicum Fields Park master planning.                95,000
2004 Adopted Budget                        Squalicum Fields Phase I new park                    937,000
                                           development.
2005 Adopted Budget                        Squalicum Fields Phase I design and                   650,000
                                           construction.
2006 Proposed Budget                       Squalicum Creek Park development and                  600,000
                                           restroom.
Total Budgeted                                                                             $ 2,282,000
2007-2011 Estimate                         Remaining construction costs for park            10,000,000
                                           development.
Estimated Project Total                                                                    $ 12,282,000




City Of Bellingham, Washington                                                               Page 301
2006 Adopted Budget
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2006 Capital (continued)


Squalicum Creek Park (continued)

Budgeted Revenues and Sources                  Actual             2005             2006          Total
                                            Received as          Adopted         Proposed
                                             of 12/31/04         Budget           Budget
Squalicum Park/Olympic Fund                    1,032,000                 -               -       1,032,000
First Quarter REET Fund                                  -         650,000               -         650,000
Wastewater Fund                                          -               -         200,000         200,000
Second Quarter REET Fund                                 -               -         100,000         100,000
IAC Grant                                                -               -         300,000         300,000
Total Budgeted                              $ 1,032,000      $     650,000   $     600,000   $   2,282,000
2007-2011 Estimated Need:
Unfunded in 2011                                                                             $ 10,000,000
Estimated Total Revenue, Funded and Unfunded                                                 $ 12,282,000

Budgeted Expenditures and Uses                 Actual           2005             2006            Total
                                             Spent as of      Adopted          Proposed
                                              12/31/04         Budget           Budget
Construction - Community Parks                    94,388       1,587,612          600,000        2,282,000
Total Budgeted                              $     94,388     $ 1,587,612     $    600,000    $   2,282,000
2007-2011 Estimated Need:
Construction costs for remainder of park development in 2011.                                $ 10,000,000
Estimated Total Expenditures                                                                 $ 12,282,000

Estimated Impact on Operating Budget
Phase I development will impact staffing, supplies and equipment. Additional staff hours will be needed
for mowing, field preparation, landscape maintenance, restroom cleaning and facility repair. Additional
funds will be needed for landscape maintenance supplies and utility costs. An estimate of $6,300 per
developed acre or $31,500 for Phase I should be used for operating impact.




Page 302                                                           City Of Bellingham, Washington
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2006 Capital (continued)


                                       WHATCOM CREEK TRAIL
                                      Final Phase: Racine to Ellis

Project Description

Construct final phase of Whatcom Creek Trail from Racine Street to Ellis, approximately 4,200 linear feet.




Budgeted Revenues and Sources               Received as           2005           2006           Total
                                             of 12/31/04         Budget         Request
Beyond Greenway Levy                                     -                -       810,000        810,000
State Grant                                              -                -       500,000        500,000
Total Budgeted                              $            -   $            -   $ 1,310,000    $ 1,310,000

Budgeted Expenditures and Uses               Spent as of          2005            2006          Total
                                              12/31/04           Budget         Request
Sidewalks, Paths and Trails                             -                 -      1,300,000     1,300,000
Interfund Professional Services                         -                 -         10,000        10,000
Total Budgeted                              $           -    $            -   $ 1,310,000    $ 1,310,000

Estimated Impact on Operating Budget
Increased staff and equipment hours for trash pickup, vandalism repair, vegetation management and trail
maintenance will cost $3,818 per year based on $4,800 per mile.




City Of Bellingham, Washington                                                                Page 303
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                                   WHATCOM FALLS RESTROOM

Project Description

Replace the existing restroom at Whatcom Falls Park with a restroom that is ADA accessible. The only
restroom in Whatcom Falls Park is located midway on a hill between the two major parking lots and
access routes. The restroom is not ADA accessible and would require extensive tree removal and grading
to meet the ADA access standards.




Budgeted Revenues and Sources              Received as           2005           2006           Total
                                            of 12/31/04         Budget         Request
Wastewater Fund                                         -                -       200,000        200,000
Total Budgeted                             $            -   $            -   $   200,000   $    200,000

Budgeted Expenditures and Uses              Spent as of          2005           2006           Total
                                             12/31/04           Budget         Request
Park Buildings Construction                            -                 -       180,000        180,000
Interfund Professional Services                        -                 -        20,000         20,000
Total Budgeted                             $           -    $            -   $   200,000   $    200,000

Estimated Impact on Operating Budget
The labor cost for maintaining the restroom will decrease somewhat based on the upgrade of materials.




Page 304                                                          City Of Bellingham, Washington
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2006 Capital (continued)


                               Fund                                                              2006
Capital Item                  Source Description and Justification                              Budget

LIBRARY DEPARTMENT
                                        Schematics, model, possible design
                                        competition. Cost is 3% of estimated
*New Library Design            FQET     construction cost.                                          371,250
                                        Professional services to review Fairhaven
                                        Branch Library structure for purposes of historic
                                        preservation, and future community and library
Structural Review -                     growth. (Reseal exterior stone in Public Works
Fairhaven Branch               FQET     projection for 2007.)                                        35,000

TOTAL CAPITAL BUDGET FOR 2006 - LIBRARY                                                     $       406,250

* See project summary following this table.


                                         NEW LIBRARY DESIGN

Project Description

Preparation of schematics and a model for the proposed new library. Schematics and a model will help
the community visualize the replacement library structure. It is possible that a design competition, similar
to the Museum project, will be an important part of the public process. The estimated cost of $371,250
represents 2% of the estimated construction only cost.


Budgeted Revenues and Sources                Received as           2005           2006               Total
                                              of 12/31/04         Budget         Request
First Quarter REET Fund                                   -                -       371,250            371,250
Total Budgeted                               $            -   $            -   $   371,250      $     371,250

Budgeted Expenditures and Uses                Spent as of          2005           2006               Total
                                               12/31/04           Budget         Request
Library Construction and Improvement                     -                 -       371,250            371,250
Total Budgeted                               $           -    $            -   $   371,250      $     371,250

Estimated Impact on Operating Budget
None associated with design phase of project.




City Of Bellingham, Washington                                                                      Page 305
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                            Fund                                                          2006
Capital Item               Source Description and Justification                          Budget

MUSEUM DEPARTMENT


Copiers - Museum            GF     Replacement schedule.                                    12,700
Fire Suppression Project
Consultant                 FQET    Consultant for fire suppression system.                  40,000
Floor Maintenance           GF     Refinish wood floors.                                    13,500

Printer Replacement          GF    Replacement schedule.                                     7,800
                                   Re-stucco and paint peeling exterior of Syre Ed
Repair and Paint Facade    FQET    Center.                                                  20,000

                                   System outdated and failing, upgrade campus,
Upgrade Security System     CMF    equipment transferable to new facility.                  53,500

TOTAL CAPITAL BUDGET FOR 2006 - MUSEUM                                               $    147,500



PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT
*600 W. Holly - Sash and         Develop and issue a Request for Development
Door Redevelopment         CDBG Proposals.                                                  74,179
Copier - Planning           GF   Replacement schedule.                                      20,000
                                 Allows customers to schedule inspections
Interactive Voice Response       directly rather than leaving a voice mail
System                      DSF  message without response.                                  35,000
Labor Reimbursement for          Reimburse staff salaries and benefits for
Qualified Projects - CDBG  CDBG qualified projects.                                         33,934
Neighborhood Initiatives   FQET/ Make capital improvements to low income
Program                    CDBG neighborhoods.                                             154,535

TOTAL CAPITAL BUDGET FOR 2006 - PLANNING AND CD                                      $    317,648

* See project summary following this table.




Page 306                                                     City Of Bellingham, Washington
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                                                                                         Capital Budget


2006 Capital (continued)


                                       600 WEST HOLLY STREET
                                     Sash and Door Redevelopment

Project Description

Complete site-planning, engineering, specifications, financial feasibility analysis and other tasks necessary
for preparing the former Sash and Door (now referred to as 600 W. Holly) for redevelopment. This
preliminary work will prepare the site to be construction-ready through clearance of blighted buildings, and
possible development of infrastructure. This action will occur soon after environmental clean-up of the
site.




City Of Bellingham, Washington                                                                  Page 307
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


600 West Holly Street (continued)

Estimated Project Total                                                                     Amount
2004 Revised Budget                       Redevelopment master planning and land              313,247
                                          acquisition.
2005 Revised Budget                       Building operations, demolition and other           302,224
                                          professional services.
2006 Proposed Budget                      Develop and issue a request for proposal.            74,179
Total Budgeted                                                                          $     689,650
2007-2011 Estimate                        Studies and Reports                                  75,663
Estimated Project Total                                                                 $     765,313

Budgeted Revenues and Sources             Received as        2005            2006            Total
                                           of 12/31/04      Budget          Request
Community Development Block Grant               41,754        126,490          74,179         242,423
Capital Maintenance Fund                        61,000         58,000               -         119,000
General Fund                                   210,493        117,734               -         328,227
Total Budgeted                            $    313,247    $   302,224     $    74,179   $     689,650
2007-2011 Estimated Need:
Community Development Block Grant                                                              75,663
Estimated Total Revenue                                                                 $     765,313

Budgeted Expenditures and Uses             Spent as of       2005            2006            Total
                                            12/31/04        Budget          Request
Studies and Reports                             14,517        153,727          74,179         242,423
Land Acquisition                               210,493              -               -         210,493
Engineering Services                               298              -               -             298
Postage                                             16              -               -              16
Repair and Maintenance - Building               21,943        124,789               -         146,732
Street Interfund Services                          954              -               -             954
Surface and Storm                                     -         1,700               -           1,700
Relacation Costs                                      -        85,000               -          85,000
Insurance                                             -         2,034               -           2,034
Total Budgeted                            $    248,221    $   367,250     $    74,179   $     689,650
2007-2011 Estimated Need:
Additional studies and reports in 2007.                                                        75,663
Estimated Total Expenditures                                                            $     765,313

Estimated Impact on Operating Budget
Planning and Community Development will coordinate with the relevant department (Parks or Public
Works) to assure future maintenance and operations.




Page 308                                                        City Of Bellingham, Washington
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2006 Capital (continued)


                           Fund                                                            2006
Capital Item              Source Description and Justification                            Budget

HUMAN RESOURCES DEPARTMENT
                            Increase efficiency; needed for HRIS
HR Co-Location/Remodel FQET implementation.                                                   7,500

TOTAL CAPITAL BUDGET FOR 2006 - HUMAN RESOURCES                                       $      7,500



INFORMATION AND TECHNOLOGY SERVICES DEPARTMENT
Agenda Preparation         Hardware & software to prepare legislative
Software               CRF agendas & publish on web site.                                    75,000
                           Add needed capacity to backup system for
Backup System - Expand CRF mission critical network backups.                                 20,000

                                 Replace three central servers at end of life, add
Central Network Servers    CRF   server for disaster recovery, wireless license.             46,000
Computer Hardware         GF/CRF Replace end-of-life hardware.                                6,487
                                 HR/Payroll system project: replace mix of
*HR/Payroll System         CRF   existing systems.                                          352,000
                                 Expand storage for network attached storage
                                 device. Increase capacity from 2 Terabytes to
Network Storage-Expand     CRF   4 Terabytes.                                                33,000
                                 Consultant to facilitate selection process for
*Telephone System          TEL   telephone system.                                           80,000

TOTAL CAPITAL BUDGET FOR 2006 - ITSD                                                  $    612,487

* See project summary following this table.




City Of Bellingham, Washington                                                              Page 309
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Capital Budget


2006 Capital (continued)


                                         HR/PAYROLL SYSTEM

Project Description

Purchase an integrated HR/Payroll software system, hardware, and implementation services. This project
was approved in 2005. This request appropriates the identified remainder of funding ($262,000 already
transferred to the Computer Reserve Fund and an additional $90,000 to be transferred from Utilities).



Budgeted Revenues and Sources               Received as         2005           2006             Total
                                             of 12/31/04       Budget         Request
Computer Reserve Fund                                    -        20,000        352,000          372,000
Total Budgeted                              $            -   $    20,000    $   352,000     $    372,000

Budgeted Expenditures and Uses               Spent as of        2005             2006           Total
                                              12/31/04         Budget           Request
Interfund Subsidy - General Fund                        -         20,000                -         20,000
Computer Hardware                                       -              -          352,000        352,000
Total Budgeted                              $           -    $    20,000    $     352,000   $    372,000

Estimated Impact on Operating Budget
Estimated $20,000-$50,000 increase for staff time required during the transition to the new system.




Page 310                                                          City Of Bellingham, Washington
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                                                                                         Capital Budget


2006 Capital (continued)


                                          TELEPHONE SYSTEM

Project Description

Provide funding for a consultant to facilitate the selection process for a new telephone system for the City.
The consultant will work with the City Team to identify system objectives, estimate final budget needs,
prepare the RFP for system replacement, advise the City in interpeting RFP responses, and make
appropriate presentations and recommendations related to the process.


Budgeted Revenues and Sources                 Received as          2005           2006              Total
                                              of 12/31/04         Budget         Request
Telecommunications Fund                                                             80,000            80,000
Total Budgeted                        $                   -   $            -   $    80,000     $      80,000
2007-2011 Estimated Need:
Unfunded in 2007 and 2008.                                                                       1,400,000
Estimated Total Revenue, Funded and Unfunded                                                   $ 1,480,000

Budgeted Expenditures and Uses                Spent as of          2005           2006              Total
                                               12/31/04           Budget         Request
Other Professional Services                                                         80,000            80,000
Total Budgeted                              $          - $                 -   $    80,000     $      80,000
2007-2011 Estimated Need:
Hardware to replace end-of-life systems in 2007 and 2008.                                        1,400,000
Estimated Total Expenditures                                                                   $ 1,480,000

Estimated Impact on Operating Budget
Highly preliminary analysis indicates operating budget cost savings of approximately $17,000 per year.




City Of Bellingham, Washington                                                                     Page 311
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Capital Budget


2006 Capital (continued)


                              Fund                                                          2006
Capital Item                 Source Description and Justification                          Budget

NON DEPARTMENTAL
Civic Field Debt Service      SQET    Debt for Civic Field.                                  616,092

TOTAL CAPITAL BUDGET FOR 2006 - NON DEPARTMENTAL                                       $     616,092



PUBLIC FACILITIES DISTRICT
*Art and Children's
Museum                   PFD          35,350 square foot Art & Children's Museum.           2,398,000

TOTAL CAPITAL BUDGET FOR 2006 - PUBLIC FACILITIES DISTRICT                             $ 2,398,000

* See project summary following this table.


                                   ART AND CHILDREN'S MUSEUM

Project Description

35,350 square foot building for the Bellingham Art and Children's Museum, located at the corner of Grand
Avenue and Flora Street in downtown Bellingham.




Page 312                                                         City Of Bellingham, Washington
                                                                           2006 Adopted Budget
                                                                                         Capital Budget


2006 Capital (continued)


Art and Children's Museum (continued)

Estimated Project Total                                                                          Amount
2005 Adopted Budget                         Professional services and building                     943,000
                                            construction.
2006 Proposed Budget                        Professional services and building                   2,398,000
                                            construction.
Total Budgeted                                                                               $   3,341,000
2007-2011 Estimate                          Printing, engineering, architectural and other       7,592,000
                                            professional services; building construction
                                            and insurance.
Estimated Project Total                                                                      $ 10,933,000

Budgeted Revenues and Sources                   Actual           2005           2006              Total
                                             Received as        Adopted       Proposed
                                              of 12/31/04       Budget         Budget
Public Facilties District Fund                            -       943,000      2,398,000         3,341,000
Total Budgeted                               $            -   $   943,000    $ 2,398,000     $   3,341,000
2007-2011 Estimated Need:
Public Facilities District Fund in 2007                                                         7,592,000
Estimated Total Revenue                                                                      $ 10,933,000

Budgeted Expenditures and Uses                  Actual           2005           2006              Total
                                              Spent as of       Adopted       Proposed
                                               12/31/04         Budget         Budget
Printing, Forms, Binding                                 -          8,000          8,000            16,000
Engineering Services                                     -         20,000         20,000            40,000
Architectural Services                                   -        600,000        300,000           900,000
Other Professional Services                              -        115,000         40,000           155,000
Building Acquisition and Construction                    -        180,000      2,000,000         2,180,000
Interfund Engineering Services                           -         20,000         30,000            50,000
Total Budgeted                               $           -    $   943,000    $ 2,398,000     $   3,341,000
2007-2011 Estimated Need:
Printing, engineering, architectural and other services in 2007                                   591,000
Building construction costs in 2007                                                             7,000,000
Insurance in 2007                                                                                   1,000
Estimated Total Expenditures                                                                 $ 10,933,000

Estimated Impact on Operating Budget
Net increase of $125,723, to be paid from private fundraising revenues, possibly through establishment of
$3,000,000 endowment fund.




City Of Bellingham, Washington                                                                   Page 313
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                              Fund                                                          2006
Capital Item                 Source Description and Justification                          Budget

PUBLIC WORKS - STREET
                                    Reconstruct 30th Street and Donovan Avenue
                              ISST/ due to closure of 32nd Street. Add curb, gutter,
*30th and Donovan Street     FHWA/ sidewalk and bike lanes on one side of the
Improvements                   STR  street.                                                 1,000,000
                                    Annual program to replace outdated hardware
*Annual Signal                      and construct physical improvements to
Improvement Program            STR  increase safety and capacity at intersections.           625,000
                                    Annual street resurfacing - overlay
*Annual Street Resurfacing     STR  miscellaneous streets in need of repair.                3,000,000
*Annual Traffic Calming             Large traffic calming projects to administer
Program                        STR  National Traffic Safety Program.                         200,000
*Bellingham Waterfront              Construct a new bridge on the Laurel Street
Restoration Phase I -               right-of-way between State Street and Cornwall
Laurel Street                  STR  Avenue.                                                  100,000
Biennial Street Light               Scheduled replacement of arterial street,
Replacement                    STR  corridor street lighting systems.                        150,000
                                    Complete curbs, gutters and sidewalks on
                                    south side of Birchwood west of Meridian. Add
*Birchwood Avenue                   new eastbound lane and upgrade traffic signal
Improvements                   STR  and street lighting.                                     200,000
                             FQET/ Streetscape improvements on Flora Street from
*Flora Streetscape           SQET mt. Baker Theatre to the Museum.                           250,000
                                    Install curb, gutter, bicycle lanes, sidewalks on
*Fraser - Puget Pedestrian          Puget and Fraser Streets north of Civic Field,
and Bike Improvements          STR  from Lincoln to Regency Apartments.                      450,000
*Holly Street Gateway -       STR/ Improve and enhance streetscape along upper
Ellis to Railroad            SQET Holly Street between Ellis and Railroad.                  1,500,000
*James Street Pedestrian
and Bike Improvements -      FQET/    Install pedestrian and bike facilities from Sunset
Sunset to City Limits        SQET     Drive to Telegraph Road.                               100,000
                                      Annual installation of traffic calming devices to
Neighborhood Traffic                  administer National Transportation Safety
Safety Program                STR     Program.                                                35,000
                                      Install sidewalks under I-5 to link the Bakerview
*Northwest Pedestrian        ISST/    sidewalk network to the Birchwood
Improvements - McLeod to     STR/     Neighborhood sidewalk network. Eliminate
Bakerview                    SQET     stop sign at Northwest northbound on ramp to I-        500,000
                                      Add additional streetscape work on Railroad
*Railroad and Maple Street            Avenue and Maple Avenue, along with alley
Improvements                  ASF     improvements.                                          300,000

* See project summary following this table.




Page 314                                                         City Of Bellingham, Washington
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2006 Capital (continued)


                           Fund                                                  2006
Capital Item              Source Description and Justification                  Budget

PUBLIC WORKS - STREET (continued)
*San Juan Boulevard -   FHWA/ Design, right-of-way with construction
Phase I                  STR   anticipated in 2007.                              1,042,000
                               Design, right-of-way for Phase II of Sunset
*Sunset Dr. Phase II -  FHWA/ Drive, Woburn to City Limits, construction
Woburn to City Limits    STR   anticipated in 2007.                                900,000
                               Construct a sidewalk and a bike lane along
*West Street Pedestrian        West Street between Squalicum Parkway and
Improvements             STR   W. North Street.                                    500,000
*Woburn - Alabama Right
Turn Lane                STR   Right of way acquisition.                           500,000

TOTAL CAPITAL BUDGET FOR 2006 - PUBLIC WORKS STREET                           $ 11,352,000

* See project summary following this table.




City Of Bellingham, Washington                                                     Page 315
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                           30TH AND DONOVAN STREET IMPROVEMENTS

Project Description

Signalization of the southbound I-5 ramps and Old Fairhaven Parkway intersection by the Washington
State Department of Transportation has created the need for the closure of 32nd Street. As a mitigation
measure, 30th Street and Donovan Avenue will be reconstructed to 3/4 of an urban arterial standard,
which will include curb, gutter, sidewalks, and bike lanes on one side of the street.




Page 316                                                          City Of Bellingham, Washington
                                                                            2006 Adopted Budget
                                                                                       Capital Budget


2006 Capital (continued)


30th and Donovan Street Improvements (continued)

Budgeted Revenues and Sources              Received as          2005              2006          Total
                                           of 12/31/04         Budget           Estimate
Federal Grant/State Transportation                     -                -          500,000       500,000
Program
WSDOT                                                  -                -          340,000       340,000
Street Fund                                            -                -          160,000       160,000
Total Budgeted                             $           -   $            -   $    1,000,000   $ 1,000,000

Budgeted Expenditures and Uses              Spent as of         2005           2006             Total
                                             12/31/04          Budget         Request
Engineering Services                                   -                -        90,000           90,000
Interfund Engineering                                  -                -        10,000           10,000
Roadways and Streets                                   -                -       800,000          800,000
Storm Drains                                           -                -       100,000          100,000
Total Budgeted                             $           -   $            -   $ 1,000,000      $ 1,000,000

Estimated Impact on Operating Budget
Additional pavement and walkways will increase the annual operating costs by $5,905 per year.




City Of Bellingham, Washington                                                                Page 317
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                             ANNUAL SIGNAL IMPROVEMENT PROGRAM

Project Description

As growth occurs throughout Bellingham and traffic volumes increase, many of the City's older traffic
signals can no longer accommodate the various traffic movements. This program is designed to construct
modifications to existing traffic signals such as larger turning radii, additional turn lanes, enhanced
pedestrian crossings, bicycle detectors, transit signal priority and ITS applications to allow the signals to
operate in a more efficient manner.




Budgeted Revenues and Sources                Received as           2005           2006            Total
                                              of 12/31/04         Budget         Request
Street Fund                                               -                -       625,000          625,000
Total Budgeted                               $            -   $            -   $   625,000    $     625,000
2007-2011 Estimated Need:
Street Fund $225,000 per year.                                                                  1,125,000
Estimated Total Revenue                                                                       $ 1,750,000

Budgeted Expenditures and Uses                Spent as of          2005           2006            Total
                                               12/31/04           Budget         Request
Traffic Control Devices                                  -                 -       625,000          625,000
Total Budgeted                               $           -    $            -   $   625,000    $     625,000
2007-2011 Estimated Need:
Traffic Control Devices estimated $225,000 per year.                                            1,125,000
Estimated Total Expenditures                                                                  $ 1,750,000

Estimated Impact on Operating Budget
Signals are replaced with light emitting diode lamps which use less electrical energy. No impact on annual
operating budget.




Page 318                                                            City Of Bellingham, Washington
                                                                              2006 Adopted Budget
                                                                                            Capital Budget


2006 Capital (continued)


                                     ANNUAL STREET RESURFACING

Project Description

The goal of this program is to maintain existing streets to protect the initial investment in the street and to
ensure an adequate quality driving surface at an optimal life-cycle cost. Approximately 5% of the City's
streets require rehabilitation each year.




Budgeted Revenues and Sources                 Received as          2005              2006             Total
                                               of 12/31/04        Budget           Request
Street Fund                                                -                 -      3,000,000      3,000,000
Total Budgeted                                $          $ -                 -   $ 3,000,000     $ 3,000,000
2007-2011 Estimated Need:
Estimated $1,500,000 per year from Street Fund in 2007-2011.                                        7,500,000
Estimated Total Revenues                                                                         $ 10,500,000

Budgeted Expenditures and Uses                 Spent as of         2005              2006             Total
                                                12/31/04          Budget           Request
Street Improvements                                       -                  -      2,500,000      2,500,000
Drainage Improvements                                     -                  -        185,000        185,000
Traffic Control Devices                                   -                  -        300,000        300,000
Interfund Engineering Services                            -                  -         15,000         15,000
Total Budgeted                                $           $
                                                          -                  -   $ 3,000,000     $ 3,000,000
2007-2011 Estimated Need:
Estimated $1,500,000 per year for this program in 2007-2011.                                        7,500,000
Estimated Total Expenditures                                                                     $ 10,500,000

Estimated Impact on Operating Budget
This activity will reduce the annual cost of pavement maintenance.




City Of Bellingham, Washington                                                                      Page 319
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                                 ANNUAL TRAFFIC CALMING PROGRAM

Project Description

This new initiative is intended to keep Bellingham's neighborhoods livable and to keep traffic speeds
slower to make the community more pedestrian and bicycle friendly. This project will add traffic calming
features in various locations in the community. The first year will be projects on 40th Street in the Samish
Neighborhood.




Budgeted Revenues and Sources                Received as           2005           2006             Total
                                              of 12/31/04         Budget         Request
Street Fund                                               -                -       200,000           200,000
Total Budgeted                               $            -   $            -   $   200,000     $     200,000
2007-2011 Estimated Need:
Street Fund $200,000 per year.                                                                   1,000,000
Estimated Total Revenue                                                                        $ 1,200,000

Budgeted Expenditures and Uses                Spent as of          2005           2006             Total
                                               12/31/04           Budget         Request
Roadway and Street Construction                          -                 -       200,000           200,000
Total Budgeted                               $           - $               -   $   200,000     $     200,000
2007-2011 Estimated Need:
Estimated $200,000 per year in construction costs for 2007-2011.                                 1,000,000
Estimated Total Expenditures                                                                   $ 1,200,000

Estimated Impact on Operating Budget
The installation of traffic calming measures will increase street maintenance costs by approximately
$1,500 per device per year (for a traffic circle). Costs will vary based on the type and size of the calming
measure.




Page 320                                                            City Of Bellingham, Washington
                                                                              2006 Adopted Budget
                                                                                           Capital Budget


2006 Capital (continued)


                              BELLINGHAM WATERFRONT RESTORATION
                                       Phase I - Laurel Street

Project Description

This project includes the construction of a new bridge on the Laurel Street right-of-way between State
Street and Cornwall Avenue. This bridge will allow additional access to the Waterfront Restoration site,
and will include facilities for pedestrians and bicycles. The bridge will also be constructed to allow future
relocation of the BNSF railroad main line from its existing location in the middle of the Waterfront
Restoration site, and also have adequate width for future double tracking.




City Of Bellingham, Washington                                                                     Page 321
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


Bellingham Waterfront Restoration Phase I - Laurel Street

Budgeted Revenues and Sources              Received as           2005           2006           Total
                                            of 12/31/04         Budget         Request
Street Fund                                             -                -       100,000        100,000
Total Budgeted                             $            -$               -   $   100,000   $    100,000
2007-2011 Estimated Need:
Estimated $100,000 per year from Street Fund in 2007 and 2008.                                 200,000
Unfunded in 2009.                                                                            8,500,000
Estimated Total Revenues, Funded and Unfunded                                              $ 8,800,000

Budgeted Expenditures and Uses              Spent as of          2005           2006           Total
                                             12/31/04           Budget         Request
Engineering Services                                   -                 -        95,000         95,000
Interfund Engineering Services                         -                 -         5,000          5,000
Total Budgeted                             $           -    $            -   $   100,000   $    100,000
2007-2011 Estimated Need:
Additional engineering costs in 2007 and 2008.                                                 200,000
Bridge construction costs in 2009.                                                           8,500,000
Estimated Total Expenditures                                                               $ 8,800,000

Estimated Impact on Operating Budget
These improvements will increase annual maintenance costs by $2,675 per year.




Page 322                                                          City Of Bellingham, Washington
                                                                            2006 Adopted Budget
                                                                                         Capital Budget


2006 Capital (continued)


                               BIRCHWOOD AVENUE IMPROVEMENTS

Project Description

Birchwood Avenue is currently missing a short section of urban improvements just west of Meridian Street
resulting in vehicles, bicycles and pedestrians all competing for space on an unimproved shoulder. This
project will complete the curbs, gutters and sidewalk on the south side of Birchwood Avenue, add a new
eastbound lane to accommodate bicycles and right-turning vehicles, and upgrade the traffic signal and
street lighting system.




Estimated Project Total                                                                         Amount
2004 Adopted Budget                       Sidewalk installation on south side, west of            200,000
                                          Meridian.
2006 Proposed Budget                      Complete curbs, gutters and sidewalks on                200,000
                                          south side, west of Meridian; add new
                                          eastbound lane, upgrade traffic signal and
                                          lighting.
Total Budgeted                                                                              $     400,000

Budgeted Revenues and Sources              Received as           2005           2006             Total
                                            of 12/31/04         Budget         Request
Street Fund                                             -                -       200,000          200,000
Second Quarter REET Fund                        200,000                  -             -          200,000
Total Budgeted                             $    200,000     $            -   $   200,000    $     400,000




City Of Bellingham, Washington                                                                  Page 323
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


Birchwood Avenue Improvements (continued)

Budgeted Expenditures and Uses            Spent as of       2005            2006           Total
                                           12/31/04        Budget          Request
Engineering Services                            7,835            837               -          8,672
Roadways and Streets                                 -             -         100,000        100,000
Storm Drains                                         -             -          30,000         30,000
Sidewalks, Paths and Trails                          -       191,328               -        191,328
Traffic Control Devices                              -             -          70,000         70,000
Total Budgeted                           $      7,835    $   192,165   $     200,000   $    400,000

Estimated Impact on Operating Budget
These improvements will increase annual operating costs. However, drainage problems that have caused
added maintenance on the existing street section will be improved. Annual cost increase is $563.




Page 324                                                      City Of Bellingham, Washington
                                                                        2006 Adopted Budget
                                                                                            Capital Budget


2006 Capital (continued)


                                 FLORA STREETSCAPE IMPROVEMENTS

Project Description

Improve the street, curb, sidewalk, street lighting, signage, street trees, bollards and other features that will
make this street an integral part of the theater and museum district. The project will extend generally from
east of the Mt. Baker Theatre to the museum at Prospect Street. The project has been conceptually
designed by a consultant working for the PFD, and is expected to be more pedestrian friendly, more
visually appealing, and to tie into the planned Children's Museum and Teaching Gallery.




City Of Bellingham, Washington                                                                      Page 325
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


Flora Streetscape Improvements (continued)

Budgeted Revenues and Sources              Received as           2005           2006           Total
                                            of 12/31/04         Budget         Request
Second Quarter REET Fund                                -                -       250,000        250,000
Total Budgeted                             $            -   $            -   $   250,000   $    250,000
2007-2011 Estimated Need:
First Quarter REET Fund in 2007.                                                              1,000,000
Second Quarter REET Fund in 2007.                                                              750,000
Estimated Total Revenue                                                                    $ 2,000,000

Budgeted Expenditures and Uses              Spent as of          2005           2006           Total
                                             12/31/04           Budget         Request
Engineering Services                                   -                 -       250,000        250,000
Total Budgeted                             $           -    $            -   $   250,000   $    250,000
2007-2011 Estimated Need:
Estimated construction costs in 2007.                                                        1,750,000
Estimated Total Expenditures                                                               $ 2,000,000

Estimated Impact on Operating Budget
This enhanced streetscape will increase annual maintenance costs in future years by approximately
$25,000 as brick treatments and bollards and treewell grates are more expensive to maintain or replace
than standard street design.




Page 326                                                          City Of Bellingham, Washington
                                                                            2006 Adopted Budget
                                                                                                                                       Capital Budget


2006 Capital (continued)


                                    FRASER-PUGET PEDESTRIAN AND BIKE IMPROVEMENTS

Project Description

Improve Fraser Street between the existing Regency Apartments and Lincoln Street with bicycle lanes and
curbs, gutters and sidewalks. Improve Puget Street from Fraser Street to the terminus of existing
sidewalks with curbs, gutters and sidewalks. The project will be constructed in three phases. Phase I will
construct improvements on Fraser Street between Puget Street and Lincoln Street. Phase II will construct
improvements on Puget Street from Fraser Street to Gladstone Street. Phase III will construct
improvements on Fraser Street from Puget Street to the Regency Apartments.



                        197


                  1
                  96




                                                       198
                                                             PHASE 1
                                                               <                         PHASE 3
                                                                                           <
                              -5
                              .
                              ,                                        FRASER ST

                   37

                                    38
                                                       39
                                                                   PHASE 2




                                                                                                                          W OBURN ST
                                                                                     <
                               LINCOL N ST




                                                                                                                  1



                          26                      25                                                                  2
                                                                          PUGET ST




                                                                                            1


             18




                         19                  24




Estimated Project Total                                                                                                                       Amount
2004 Adopted Budget                                                    Install curbs, gutters, bicycle lanes and                                100,000
                                                                       sidewalks.
2005 Adopted Budget                                                    Install curbs, gutters, bicycle lanes and                                550,000
                                                                       sidewalks.
2006 Proposed Budget                                                   Install curbs, gutters, bicycle lanes and                                450,000
                                                                       sidewalks.
Total Budgeted                                                                                                                            $ 1,100,000
2007-2011 Estimate                                                     Install curbs, gutters, bicycle lanes and                              200,000
                                                                       sidewalks.
Estimated Project Total                                                                                                                   $   1,300,000

Budgeted Revenues and Sources                                          Received as                   2005         2006                         Total
                                                                        of 12/31/04                 Budget       Request
Street Fund                                                                         -                      -       450,000                      450,000
Second Quarter REET Fund                                                    100,000                  550,000             -                      650,000
Total Budgeted                                                         $    100,000             $    550,000   $   450,000                $   1,100,000
2007-2011 Estimated Need:
Street Fund in 2007.                                                                                                                          200,000
Estimated Total Revenue                                                                                                                   $ 1,300,000




City Of Bellingham, Washington                                                                                                                Page 327
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


Fraser-Puget Pedestrian and Bike Improvements (continued)

Budgeted Expenditures and Uses              Spent as of       2005           2006            Total
                                             12/31/04        Budget         Request
Engineering Services                             19,311        120,689         90,000          230,000
Interfund Engineering Services                         -        10,000         10,000           20,000
Roadway and Street Improvements                        -       150,000        150,000          300,000
Sidewalk Improvements                                  -       150,000        200,000          350,000
Traffic Control Devices                                -       200,000              -          200,000
Total Budgeted                             $     19,311    $   630,689    $   450,000    $   1,100,000
2007-2011 Estimated Need:
Sidewalk improvements in 2007.                                                               200,000
Estimated Total Expenditures                                                             $ 1,300,000

Estimated Impact on Operating Budget
Additional asphalt pavement and concrete sidewalks will increase the cost of maintenance by $17,338 per
year.




Page 328                                                        City Of Bellingham, Washington
                                                                          2006 Adopted Budget
                                                                                      Capital Budget


2006 Capital (continued)


                                      HOLLY STREET GATEWAY
                                          Ellis to Railroad

Project Description

This project will improve and enhance the streetscape along upper Holly Street between Ellis Street and
Railroad Avenue. This project has been partially funded through prior years' allocations of the Downtown
Street/Sidewalk Improvements Program. This project will enhance multi-modal activities and create a
more pedestrian friendly environment through the installation of new sidewalks, street trees, and street
lighting.




Budgeted Revenues and Sources              Received as           2005            2006          Total
                                            of 12/31/04         Budget         Request
Street Fund                                             -                -      1,350,000     1,350,000
Second Quarter REET Fund                                -                -        150,000       150,000
Total Budgeted                             $            -   $            -   $ 1,500,000    $ 1,500,000




City Of Bellingham, Washington                                                               Page 329
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


Holly Street Gateway, Ellis to Railroad (continued)

Budgeted Expenditures and Uses                Spent as of         2005            2006          Total
                                               12/31/04          Budget         Request
Engineering Services                                     -                -        135,000       135,000
Interfund Engineering Services                           -                -         25,000        25,000
Lighting Systems                                         -                -        100,000       160,000
Roadway and Street Improvements                          -                -      1,050,000     1,050,000
Storm Drains                                             -                -        190,000       190,000
Total Budgeted                               $           -   $            -   $ 1,500,000    $ 1,560,000

Estimated Impact on Operating Budget
This project will increase annual operating cost for streetscape maintenance $2,500 per year.




Page 330                                                           City Of Bellingham, Washington
                                                                             2006 Adopted Budget
                                                                                            Capital Budget


2006 Capital (continued)


                       JAMES STREET PEDESTRIAN AND BIKE IMPROVEMENTS
                                   Sunset Drive to City Limits

Project Description

James Street is in an area of significant growth and has inadequate or non-existent pedestrian or bicycle
facilities. This project is to install those facilities from Sunset to Telegraph. The project will include turn
lanes, bicycle lanes, curb, gutters, sidewalk, enclosed drainage and street lighting.




Budgeted Revenues and Sources                  Received as       2005                2006              Total
                                                of 12/31/04     Budget             Request
Second Quarter REET Fund                                    -          -              100,000           100,000
Total Budgeted                                 $            - $        -         $    100,000     $     100,000
2007-2011 Estimated Need:
First Quarter REET Fund in 2008.                                                                    1,000,000
Second Quart REET Fund - $300,000 in 2007 and $600,000 in 2008.                                       900,000
Estimated Total Revenues                                                                          $ 2,000,000




City Of Bellingham, Washington                                                                        Page 331
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


James Street Pedestrian and Bike Improvements (continued)

Budgeted Expenditures and Uses                Spent as of          2005           2006             Total
                                               12/31/04           Budget         Request
Engineering Services                                     -                 -       100,000          100,000
Total Budgeted                               $           -    $            -   $   100,000     $    100,000
2007-2011 Estimated Need:
Engineering services for 2007 and 2008.                                                            300,000
Roadway and Street Construction in 2008 and 2009.                                                1,600,000
Estimated Total Expenditures                                                                   $ 2,000,000

Estimated Impact on Operating Budget
This project will create additional public facilities to be maintained. Costs are estimated to be $40,000 per
year and would impact the Street Fund.




Page 332                                                            City Of Bellingham, Washington
                                                                              2006 Adopted Budget
                                                                                     Capital Budget


2006 Capital (continued)


                            NORTHWEST PEDESTRIAN IMPROVEMENTS
                                    McLeod to Bakerview

Project Description

This project will install sidewalks under I-5 to link the Bakerview sidewalk network to the Birchwood
Neighborhood sidewalk network and realign Northwest to eliminate the stop sign located at the northbound
I-5 on-ramp. WSDOT approval will be required for the portion of this project adjacent to I-5.




Budgeted Revenues and Sources              Received as          2005           2006            Total
                                           of 12/31/04         Budget         Request
Second Quarter REET Fund                               -                -       100,000         100,000
Intergovernmental Grants                                                        400,000         400,000
Total Budgeted                           $            - $               -   $   500,000   $     500,000
2007-2011 Estimated Need:
Street Fund in 2007.                                                                          200,000
Second Quarter REET Fund in 2007.                                                             250,000
Washington State Department of Transportation Grant in 2007.                                  100,000
Estimated Total Revenues                                                                  $ 1,050,000




City Of Bellingham, Washington                                                                Page 333
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


Northwest Road Pedestrian Improvements (continued)

Budgeted Expenditures and Uses              Spent as of         2005           2006           Total
                                             12/31/04          Budget         Request
Engineering Services                                   -                -       100,000        100,000
Roadway and Street Construciton                        -                -       400,000        400,000
Total Budgeted                             $           -   $            -   $   500,000   $    500,000
2007-2011 Estimated Need:
Interfund Engineering in 2007.                                                                 50,000
Roadway Construction in 2007.                                                                 400,000
Sidewalks, Paths and Trails in 2007.                                                          100,000
Estimated Total Expenditures                                                              $ 1,050,000

Estimated Impact on Operating Budget
Operating cost for long term maintenance will be increased by $9,174 per year.




Page 334                                                         City Of Bellingham, Washington
                                                                           2006 Adopted Budget
                                                                                         Capital Budget


2006 Capital (continued)


                          RAILROAD AND MAPLE STREET IMPROVEMENTS

Project Description

This project adds to the existing Depot Market project which is under construction. This project adds
additional streetscape work on Railroad Avenue and Maple Avenue, as well as improvements along the
alley. The project will create additional pedestrian-friendly streetscape in the area of the Depot Market.




Budgeted Revenues and Sources                Received as           2005           2006             Total
                                              of 12/31/04         Budget         Request
Arterial Street Fund                                      -                -       300,000          300,000
Total Budgeted                               $            -   $            -   $   300,000    $     300,000

Budgeted Expenditures and Uses                Spent as of          2005           2006             Total
                                               12/31/04           Budget         Request
Roadway and Street Construction                          -                 -       300,000          300,000
Total Budgeted                               $           -    $            -   $   300,000    $     300,000

Estimated Impact on Operating Budget
Operational cost impacts for the overall Depot Market have been determined to be less than the additional
operational revenues. There will be approximately $5,000 in additional street and alley maintenance costs
in future years due to the enhanced streetscape.




City Of Bellingham, Washington                                                                    Page 335
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                                      SAN JUAN BOULEVARD
                                             Phase I

Project Description

This project is the western section of the unimproved section of San Juan Boulevard and was once known
as the Yew/Samish connector. The unimproved section of road lies between 40th and 48th Streets. The
project is a prerequisite to continued development in the area and will provide alternate access to
Interstate 5, relieving some congestion along Lakeway Drive. The remaining unimproved portion of San
Juan was broken into two phases for funding purposes.




Estimated Project Total                                                                   Amount
2000 Revised Budget                       Route study and land acquisition.                  525,000
2001 Adopted Budget                       Design.                                            200,000
2002 Adopted Budget                       Design.                                             50,000
2003 Adopted Budget                       Design.                                             50,000
2004 Adopted Budget                       Design and right of way.                            50,000
2005 Adopted Budget                       Design and right of way.                         1,275,000
2006 Proposed Budget                      Land acquisition and design.                     1,042,000
Total Budgeted                                                                          $ 3,192,000
2007-2011 Estimate                        Engineering services                                50,000
Estimated Project Total                                                                 $ 3,242,000




Page 336                                                         City Of Bellingham, Washington
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2006 Capital (continued)


San Juan Boulevard Phase I (continued)

Budgeted Revenues and Sources              Received as         2005          2006             Total
                                            of 12/31/04       Budget        Request
Street Fund                                     420,000          50,000        50,000         520,000
Arterial Street Fund                             30,000               -             -          30,000
Federal Grants/STP and FHWA                             -     1,225,000       992,000       2,217,000
First Quarter REET Fund                         283,000               -             -         283,000
Second Quarter REET Fund                        142,000               -             -         142,000
Total Budgeted                             $    875,000     $ 1,275,000   $ 1,042,000     $ 3,192,000
2007-2011 Estimated Need:
Street Fund in 2007.                                                                           50,000
Estimated Total Revenue                                                                   $ 3,242,000

Budgeted Expenditures and Uses              Spent as of        2005          2006             Total
                                             12/31/04         Budget        Request
Engineering Services                            298,240         150,000       150,000         598,240
Interfund Engineering Service                    11,760         100,000        92,000         203,760
Land Acquisition                                565,000               -       800,000       1,365,000
Roadways and Streets                                   -        750,000             -         750,000
Storm Drains                                           -        275,000             -         275,000
Total Budgeted                             $    875,000     $ 1,275,000   $ 1,042,000     $ 3,192,000
2007-2011 Estimated Need:
Phase I engineering services in 2007.                                                          50,000
Estimated Total Expenditures                                                              $ 3,242,000

Estimated Impact on Operating Budget
This project will result in increased operating costs for pavement and surface maintenance, storm water
system maintenance, illumination maintenance and electrical energy consumption. Annual cost increase
is $6,687.




City Of Bellingham, Washington                                                              Page 337
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                                         SUNSET DRIVE PHASE II
                                          Woburn to City Limits

Project Description

Phase II of the Sunset Drive Improvements is fully funded and continues retrofitting to urban arterial street
standards. It will begin east of Woburn Street and continue to the city limits. The project includes
pavement widening, bicycle lanes, turn lanes, curbs, gutters, sidewalks, enclosed drainage and street
lighting.




Estimated Project Total                                                                          Amount
2004 Adopted Budget                         Design and right of way.                              1,400,000
2005 Adopted Budget                         Design and right of way.                              1,350,000
2006 Proposed Budget                        Design and right of way.                                900,000
Total Budgeted                                                                                 $ 3,650,000
2007-2011 Estimate                           Engineering and construction costs.                  6,000,000
Estimated Project Total                                                                        $ 9,650,000




Page 338                                                            City Of Bellingham, Washington
                                                                              2006 Adopted Budget
                                                                                    Capital Budget


2006 Capital (continued)


Sunset Drive Improvements Phase II (continued)

Budgeted Revenues and Sources               Received as         2005          2006            Total
                                             of 12/31/04       Budget        Request
Street Fund                                      400,000         850,000       400,000       1,650,000
STP Grant                                           8,053        991,947       500,000       1,500,000
FTP Grant                                                -       500,000             -         500,000
Total Budgeted                              $    408,053     $ 2,341,947   $   900,000   $   3,650,000
2007-2011 Estimated Need:
State, intergovernmental and federal grants in 2007.                                       6,000,000
Estimated Total Revenue                                                                  $ 9,650,000

Budgeted Expenditures and Uses               Spent as of        2005          2006            Total
                                              12/31/04         Budget        Request
Engineering Services                                    -      1,665,740        85,000       1,750,740
Interfund Engineering Services                    14,260          20,000        15,000          49,260
Land Acquisition                                        -        950,000       800,000       1,750,000
Storm Drains                                            -        100,000             -         100,000
Total Budgeted                              $     14,260     $ 2,735,740   $   900,000   $   3,650,000
2007-2011 Estimated Need:
Estimated engineering costs in 2007.                                                         600,000
Estimated construction costs in 2007.                                                      5,400,000
Estimated Total Expenditures                                                             $ 9,650,000

Estimated Impact on Operating Budget
This project will result in increased operating costs for pavement and surface maintenance, storm water
system maintenance, illumination maintenance and electrical energy consumption. Annual operating cost
increase is $22,850.




City Of Bellingham, Washington                                                               Page 339
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                           WEST STREET PEDESTRIAN IMPROVEMENTS

Project Description

The project will construct a sidewalk and a bike lane along West Street between Squalicum Parkway and
W. North Street. Public workshops with the neighborhood will be utilized to develop the design for the
improvements. The project is scheduled to coincide with the Squalicum Creek Park improvement project.




Budgeted Revenues and Sources             Received as           2005           2006           Total
                                           of 12/31/04         Budget         Request
Street Fund                                            -                -       500,000        500,000
Total Budgeted                            $            -   $            -   $   500,000   $    500,000




Page 340                                                         City Of Bellingham, Washington
                                                                           2006 Adopted Budget
                                                                                   Capital Budget


2006 Capital (continued)


West Street Pedestrian Improvements (continued)

Budgeted Expenditures and Uses             Spent as of         2005           2006            Total
                                            12/31/04          Budget         Request
Engineering Services                                  -                -        40,000          40,000
Interfund Engineering Services                        -                -        10,000          10,000
Storm Drains                                          -                -        50,000          50,000
Sidewalks                                             -                -       300,000         300,000
Lighting Systems                                      -                -       100,000         100,000
Total Budgeted                            $           -   $            -   $   500,000   $     500,000

Estimated Impact on Operating Budget
Annual maintenance cost will be increased due to additional asphalt pavement and concrete walkways.
Annual operating cost increase is $1,726.




City Of Bellingham, Washington                                                               Page 341
2006 Adopted Budget
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2006 Capital (continued)


                               WOBURN/ALABAMA RIGHT TURN LANE

Project Description

This project includes the acquisition of the parcel with the Tumbleweed Grocery for future construction of
channelization improvements at this busy intersection. The store will be demolished for the construction of
the improvements. Construction of improvements will be accomplished in the 2007-2008 budget cycle.




Budgeted Revenues and Sources               Received as           2005           2006           Total
                                             of 12/31/04         Budget         Request
Street Fund                                              -                -       500,000         500,000
Total Budgeted                              $            -   $            -   $   500,000   $     500,000

Budgeted Expenditures and Uses               Spent as of          2005           2006           Total
                                              12/31/04           Budget         Request
Land Acquisiton                                         -                 -       500,000         500,000
Total Budgeted                              $           -    $            -   $   500,000   $     500,000

Estimated Impact on Operating Budget
The acquisition of the Tumbleweed grocery will have no financial impact. Intersection improvements will
create minor fiscal impact to the operating budget. However, until they are designed, the amount is
unknown.




Page 342                                                           City Of Bellingham, Washington
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2006 Capital (continued)


                             Fund                                                         2006
Capital Item                Source Description and Justification                         Budget

PUBLIC WORKS - WATER

*Annual Water Main                 Yearly water main replacement program in
Replacement Program           WF   various areas to meet mandatory requirements.            250,000
                                   Reduces number of equipment units needed at
Compactor                      WF  work site.                                                12,000
                                   More efficient mixing of coagulant to optimize
Flash Mixer at Water               partical removal - recommended in 1997 Filter
Treatment Plant                WF  Plant Evaluation Report.                                  11,000
                             ISWA/ Provide fish passage and build a new water
*Nooksack Diversion          LOAN/ intake structure for the water supply system at
Passage - Intake            DOE/WF the Nooksack Diversion Dam.                            6,600,000
                                   Install emergency power backup system.
                                   Project includes noise attenuation and
*Otis Street Pump Station      WF  screening.                                               500,000
                                   Improvements based on recommendations
Security Improvements for          from vulnerability assessment conducted of
Water System                   WF  water system and capital improvements.                   200,000
                                   Drain existing tank and remove structure from
*Sunset Heights Reservoir          City property. No longer needed to due
Demolition                     WF  construction of new water pump station.                  250,000
*Upper Yew Street            BOND/ Installation of reservoir to serve areas in high
Reservoir                      WF  elevations in the southeast part of the city.          5,000,000
*Watershed Land                    Land acquisitions to preserve watershed,
Acquisitions                 WFWS including engineering and R&D support                   3,059,000
                                   Remove old drains and media and install new
*WTP Filter Upgrades           WF  filter underdrains and place new filter media.           350,000

TOTAL CAPITAL BUDGET FOR 2006 - PUBLIC WORKS WATER                                     $ 16,232,000

* See project summary following this table.




City Of Bellingham, Washington                                                              Page 343
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                         ANNUAL WATER MAIN REPLACEMENT PROGRAM

Project Description

Every year the City of Bellingham replaces up to 1.25% of its existing water mains with new pipe. The
replacement program targets water mains that are at the end of their life cycle and require upgrades.
These pipes are generally cast iron and older than 75 years which may result in dirty water and reduced
fire protection capability.




Budgeted Revenues and Sources               Received as           2005           2006           Total
                                             of 12/31/04         Budget         Request
Water Fund                                               -                -       250,000        250,000
Total Budgeted                              $            -   $            -   $   250,000   $    250,000
2007-2011 Estimated Need:
Water Fund 2007-2011.                                                                         7,250,000
Estimated Total Revenue                                                                     $ 7,500,000

Budgeted Expenditures and Uses               Spent as of          2005           2006           Total
                                              12/31/04           Budget         Request
Engineering Services                                    -               -         200,000        200,000
Interfund Engineering Services                          -               -          50,000         50,000
Total Budgeted                              $           -  $            -     $   250,000   $    250,000
2007-2011 Estimated Need:
Total estimated engineering services and construction costs for 2007-2011.                    7,250,000
Estimated Total Expenditures                                                                $ 7,500,000

Estimated Impact on Operating Budget
Replacing aging water mains may result in lower annual maintenance costs by increasing system reliability
and thus reducing incidents of failure. It is not practical to accurately quantify these costs.




Page 344                                                           City Of Bellingham, Washington
                                                                             2006 Adopted Budget
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2006 Capital (continued)


                                NOOKSACK DIVERSION PASSAGE - INTAKE

Project Description

The City of Bellingham, in cooperation with local tribes, state and federal agencies, is working on a project
to provide fish passage and simultaneously build a new water intake structure for our water supply system
at the diversion dam on the Middle Fork of the Nooksack River. A design alternative for the intake has
been chosen and final design is expected to be completed in 2006. Ultimately, the project involves a multi-
million dollar alteration to the system that addresses environmental issues regarding fish passage, and
maintains the reliability and integrity of the City's water supply system.




Estimated Project Total                                                                                Amount
2000 Adopted Budget                             Spillway repair                                           600,000
2001 Adopted Budget                             Spillway repair                                         2,000,000
2006 Proposed Budget                            System renovation                                       6,600,000
Total Budgeted                                                                                       $ 9,200,000
2007-2011 Estimate                              Remaining construction costs                            3,000,000
Estimated Project Total                                                                              $ 12,200,000
Note: The revised budget amounts may be less than the adopted budget due to revisions in project estimates.




City Of Bellingham, Washington                                                                         Page 345
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


Nooksack Diversion Passage Intake (continued)

Budgeted Revenues and Sources               Received as           2005         2006             Total
                                             of 12/31/04         Budget      Estimate
State/Intergovernmental Grants                           -              -     3,200,000       3,200,000
Intergovernmental Loan                                   -              -     3,400,000       3,400,000
IAC Grant                                        149,483          381,767             -         531,250
Water Fund                                       530,427          465,263             -         995,690
Total Budgeted                              $    679,910     $    847,030   $ 6,600,000     $ 8,126,940
2007-2011 Estimated Need:
Unfunded in 2007.                                                                           $ 3,000,000
Estimated Total Revenue, Funded and Unfunded                                                $ 11,126,940

Budgeted Expenditures and Uses               Spent as of        2005            2006            Total
                                              12/31/04         Budget         Request
Engineering Services                             621,531         847,030         250,000      1,718,561
Architectural Services                            27,868               -               -         27,868
Water Project Construction                              -              -       6,250,000      6,250,000
Interfund Engineering Services                    30,511               -         100,000        130,511
Total Budgeted                              $    679,910     $   847,030    $ 6,600,000     $ 8,126,940
2007-2011 Estimated Need:
Construction costs for remainder of project in 2007.                                        $ 3,000,000
Estimated Total Expenditures                                                                $ 11,126,940

Estimated Impact on Operating Budget
The new diversion structure has features that allow it to operate with less operational and maintenance
tasks. The annual cost savings are estimated at $45,000.




Page 346                                                           City Of Bellingham, Washington
                                                                             2006 Adopted Budget
                                                                                         Capital Budget


2006 Capital (continued)


                                     OTIS STREET PUMP STATION

Project Description

Project provides for emergency power back-up system for existing water pump station. In addition, the
project will include noise attenuation and screening since it is located in a residential area. This pump
station is the primary water pump station serving the south side of Bellingham.




Budgeted Revenues and Sources                Received as           2005           2006             Total
                                              of 12/31/04         Budget         Request
Water Fund                                                -                -       500,000          500,000
Total Budgeted                               $            -   $            -   $   500,000    $     500,000

Budgeted Expenditures and Uses                Spent as of          2005           2006             Total
                                               12/31/04           Budget         Request
Water Project Construction                               -                 -       500,000          500,000
Total Budgeted                               $           -    $            -   $   500,000    $     500,000

Estimated Impact on Operating Budget
The net financial impact to the Operating Budget is negligible because the on-site generator will alleviate
the need to mobilize a portable generator during emergency events.




City Of Bellingham, Washington                                                                    Page 347
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                             SUNSET HEIGHTS RESERVOIR DEMOLITION

Project Description

The City owns and operates a 75,000 gallon elevated storage tank on Highland Drive that provides service
to a small section of the City above Western Washington University. In 2005, the City underwent a large
construction project to build a new water pump station that replaces this old reservoir. The project would
drain the existing tank and remove the structure from City property.




Budgeted Revenues and Sources                Received as           2005           2006           Total
                                              of 12/31/04         Budget         Request
Water Fund                                                -                -       250,000        250,000
Total Budgeted                               $            -   $            -   $   250,000   $    250,000

Budgeted Expenditures and Uses                Spent as of          2005           2006           Total
                                               12/31/04           Budget         Request
Interfund Engineering Services                           -                 -         5,000          5,000
Water Project Construction                               -                 -       245,000        245,000
Total Budgeted                               $           -    $            -   $   250,000   $    250,000

Estimated Impact on Operating Budget
There is no financial impact to the operating budget.




Page 348                                                            City Of Bellingham, Washington
                                                                              2006 Adopted Budget
                                                                                        Capital Budget


2006 Capital (continued)



                                   UPPER YEW STREET RESERVOIR

Project Description

Project includes the construction of a 2.5 million gallon reservoir, pump house with 2 pumps and
emergency power for operation. In addition, the project will include the construction of approximately
6,000 linear feet of new water main to serve the site.




Budgeted Revenues and Sources               Received as           2005            2006           Total
                                             of 12/31/04         Budget         Request
Water Fund Bond                                          -                -      5,000,000     5,000,000
Total Budgeted                              $            -   $            -   $ 5,000,000    $ 5,000,000
2007-2011 Estimated Need:
Water Fund Bond 2007-2009.                                                                      4,000,000




City Of Bellingham, Washington                                                                 Page 349
2006 Adopted Budget
Capital Budget


2006 Capital (continued)



Upper Yew Street Reservoir (continued)

Budgeted Expenditures and Uses                Spent as of        2005             2006            Total
                                               12/31/04         Budget          Request
Engineering Services                                     -              -          450,000        450,000
Interfund Engineering Services                           -              -           50,000         50,000
Water Project Construction                               -              -        4,500,000      4,500,000
Total Budgeted                               $           - $            -     $ 5,000,000     $ 5,000,000
2007-2011 Estimated Need:
Total estimated engineering services and construction costs for 2007-2009.                      4,000,000
Estimated Total Expenditures                                                                  $ 9,000,000

Estimated Impact on Operating Budget
This water supply and distribution system will replace as well as enhance existing facilities. The net
financial impact to the operating budget is negligible.




Page 350                                                           City Of Bellingham, Washington
                                                                             2006 Adopted Budget
                                                                                      Capital Budget


2006 Capital (continued)


                                 WATERSHED LAND ACQUISITIONS

Project Description

This project would purchase additional properties in the Lake Whatcom watershed to protect the lake
water quality. Properties are considered for purchase based on a detailed criteria rating system.


Budgeted Revenues and Sources              Received as           2005            2006          Total
                                            of 12/31/04         Budget         Request
Water Fund (Watershed)                                  -                -      3,059,000     3,059,000
Total Budgeted                             $            -   $            -   $ 3,059,000    $ 3,059,000
2007-2011 Estimated Need:
Water Fund (Watershed) 2007-2011.                                                             5,898,571
Estimated Total Revenue                                                                     $ 8,957,571

Budgeted Expenditures and Uses              Spent as of          2005            2006          Total
                                             12/31/04           Budget         Request
Land Acquisition                                       -                 -      3,059,000     3,059,000
Total Budgeted                             $           -    $            -   $ 3,059,000    $ 3,059,000
2007-2011 Estimated Need:
Estimated land acquisition costs for 2007-2011.                                               5,898,571
Estimated Total Expenditures                                                                $ 8,957,571

Estimated Impact on Operating Budget
As the City increases acreage through this program there are additional maintenance and security costs.
We do not currently have an accurate estimate of these costs. Until an accurate estimate is finalized,
these costs will be absorbed within existing departmenal budgets.




City Of Bellingham, Washington                                                               Page 351
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                            WATER TREATMENT PLANT FILTER UPGRADES

Project Description

The City's Water Treatment Plant is over thirty years old and a recent evaluation of the filter bays and
media determined that the filter underdrains need to be replaced. This project identifies alternative
underdrains and their ability to function within the City's direct filtration process, assists the City in
preparing a successful bid and upgrade the filters to include removal of the old drains and media,
installation of the new underdrains and placement of new filter media.




Estimated Project Total                                                                           Amount
2004 Adopted Budget                           Filter upgrades                                       350,000
2006 Proposed Budget                          Filter upgrades                                       350,000
Total Budgeted                                                                                  $   700,000




Page 352                                                             City Of Bellingham, Washington
                                                                               2006 Adopted Budget
                                                                                            Capital Budget


2006 Capital (continued)


Water Treatment Plant Filter Upgrades (continued)

Budgeted Revenues and Sources                  Received as           2005           2006               Total
                                                of 12/31/04         Budget         Request
Water Fund                                          350,000                  -       350,000            700,000
Total Budgeted                                 $    350,000     $            -   $   350,000      $     700,000

Budgeted Expenditures and Uses                  Spent as of          2005           2006               Total
                                                 12/31/04           Budget         Request
Water Project Construction                                 -                 -       350,000            700,000
Total Budgeted                                 $           -    $            -   $   350,000      $     700,000

Estimated Impact on Operating Budget
The filter upgrades will result in all filter media meeting design specifications. This will result in more
efficient water production and backwash operation. Annual savings will be approximately $50,000.




City Of Bellingham, Washington                                                                        Page 353
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                           Fund                                                           2006
Capital Item              Source Description and Justification                           Budget

PUBLIC WORKS - WASTEWATER
*Alternate Post Point             Will increase capacity of McKenzie Avenue
Outfall               WWF         outfall.                                                1,200,000
*Annual Sewer Main                Yearly sewer main replacements in various
Replacement Program   WWF         areas to meet mandatory requirements.                   1,250,000
                                  Retrofit sections of pipe with larger mains to
*Annual Trunk Main                accommodate the anticipated flows that will
Upgrades                   WWF    result from an expanding population.                     477,000
                                  Construct recreational restroom facilities for the
Depot Market Restrooms     WWF    Depot Market Community Building.                         150,000
*WWTP Facility Power
Upgrade                    WWF    Puget Power upgrade.                                     600,000
*WWTP Facility Property
Acquisition                WWF    Facility expansion.                                     2,000,000

TOTAL CAPITAL BUDGET FOR 2006 - PUBLIC WORKS WASTEWATER                                $ 5,677,000

* See project summary following this table.




Page 354                                                     City Of Bellingham, Washington
                                                                       2006 Adopted Budget
                                                                                          Capital Budget


2006 Capital (continued)


                                   ALTERNATE POST POINT OUTFALL

Project Description

The City of Bellingham's Wastewater Treatment Plant has a secondary outfall located along the old
McKenzie right-of-way. The project involves an analysis of the existing condition of the pipeline,
alternatives to rehabilitate the existing facility and a near shore study of environmental impacts.




Estimated Project Total                                                                            Amount
2004 Actual                                                                                            81,051
2005 Adopted Budget                          Increase capacity of McKenzie Avenue outfall             200,000
2006 Proposed Budget                         Increase capacity of McKenzie Avenue outfall           1,200,000
Total Budgeted                                                                                   $ 1,481,051

Budgeted Revenues and Sources                 Received as        2005              2006             Total
                                               of 12/31/04      Budget           Request
Wastewater Fund                                     81,051        200,000         1,200,000        1,481,051
Total Budgeted                                $     81,051    $   200,000      $ 1,200,000       $ 1,481,051

Budgeted Expenditures and Uses                 Spent as of       2005              2006             Total
                                                12/31/04        Budget           Request
Engineering Services                                74,132         25,000            35,000          134,132
Sewer Construction                                        -       170,000         1,145,000        1,315,000
Interfund Engineering Services                       6,919          5,000            20,000           31,919
Total Budgeted                                $     81,051    $   200,000      $ 1,200,000       $ 1,481,051

Estimated Impact on Operating Budget
Rehabilitating the existing outfall will have no fiscal impact on the annual operating budget.




City Of Bellingham, Washington                                                                     Page 355
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                         ANNUAL SEWER MAIN REPLACEMENT PROGRAM

Project Description

Every year the City of Bellingham replaces up to 1.25% of its existing sewer mains with new pipe. The
replacement program targets sewers that are at the end of their life cycle and require upgrades. The
replacement method may be either a complete dig and replace project or some kind of in-line rehabilitation
if the pipe is structurally sound.




Budgeted Revenues and Sources               Received as           2005            2006          Total
                                             of 12/31/04         Budget         Request
Wastewater Fund                                          -                -      1,250,000     1,250,000
Total Budgeted                              $            -   $            -   $ 1,250,000    $ 1,250,000
2007-2011 Estimated Need:
Wastewater Fund average of $1,370,000 per year.                                                6,850,000
Estimated Total Revenue                                                                      $ 8,100,000




Page 356                                                           City Of Bellingham, Washington
                                                                             2006 Adopted Budget
                                                                                      Capital Budget


2006 Capital (continued)


Annual Sewer Main Replacement Program (continued)

Budgeted Expenditures and Uses               Spent as of        2005            2006           Total
                                              12/31/04         Budget         Request
Engineering Services                                    -               -         15,000        15,000
Interfund Engineering Services                          -               -         35,000        35,000
Sewer Construction                                      -               -      1,200,000     1,200,000
Total Budgeted                              $           - $             -   $ 1,250,000    $ 1,250,000
2007-2011 Estimated Need:
Estimated engineering costs of $50,000 per year.                                               250,000
Estimated average construction costs of $1,320,000 per year.                                 6,600,000
Estimated Total Expenditures                                                               $ 8,100,000

Estimated Impact on Operating Budget
Replacing aging sewer mains may result in lower annual maintenance costs. It is not practical to
accurately quantify these costs.




City Of Bellingham, Washington                                                               Page 357
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                                   ANNUAL TRUNK MAIN UPGRADES

Project Description

The City of Bellingham's Wastewater Conveyance Plan identified several large sewer trunk mains that
were in need of capacity upgrades related to growth with certain City sewage basins. This project will
retrofit these sections of pipe with larger mains to accommodate the anticipated flows that will result in an
expanding population.




Budgeted Revenues and Sources                Received as           2005           2006             Total
                                              of 12/31/04         Budget         Request
Wastewater Fund                                           -                -       477,000           477,000
Total Budgeted                               $            -   $            -   $   477,000     $     477,000
2007-2011 Estimated Need:
Wastewater Fund 2007-2011.                                                                       5,716,000
Estimated Total Revenue                                                                        $ 6,193,000




Page 358                                                            City Of Bellingham, Washington
                                                                              2006 Adopted Budget
                                                                                        Capital Budget


2006 Capital (continued)


Annual Trunk Main Upgrades (continued)

Budgeted Expenditures and Uses               Spent as of         2005           2006              Total
                                              12/31/04          Budget         Request
Engineering Services                                    -               -         30,000            30,000
Interfund Engineering Services                          -               -          2,500             2,500
Sewer Project Construction                              -               -        444,500           444,500
Total Budgeted                              $           -  $            -    $   477,000     $     477,000
2007-2011 Estimated Need:
Total estimated engineering services and construction costs for 2007-2011.                   $ 5,716,000
Estimated Total Expenditures                                                                 $ 6,193,000

Estimated Impact on Operating Budget
Increasing the size of trunk sewers will have no fiscal impact on the annual operating budget.




City Of Bellingham, Washington                                                                   Page 359
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                  WASTEWATER TREATMENT PLANT FACILITY POWER UPGRADE

Project Description

The City and Puget Sound Energy (PSE) have expressed interest in reducing operating costs and energy
consumption at the Post Point WWTP. This project will systematically evaluate potential alternatives for
energy conservation by focusing on the largest energy consuming processes at the facility. This project
will implement any measures determined by both organizations to have a clear definable benefit for energy
reduction.




Budgeted Revenues and Sources                 Received as           2005           2006             Total
                                               of 12/31/04         Budget         Request
Wastewater Fund                                            -                -       600,000          600,000
Total Budgeted                                $            -   $            -   $   600,000    $     600,000

Budgeted Expenditures and Uses                 Spent as of          2005           2006             Total
                                                12/31/04           Budget         Request
Building Improvements                                     -                 -       600,000          600,000
Total Budgeted                                $           -    $            -   $   600,000    $     600,000

Estimated Impact on Operating Budget
As a result of greater efficiency, power consumption will be lower and so will the operating cost. It is
estimated that these projects would save approximately $58,000 per year.




Page 360                                                             City Of Bellingham, Washington
                                                                               2006 Adopted Budget
                                                                                         Capital Budget


2006 Capital (continued)


                   WASTEWATER TREATMENT PLANT PROPERTY ACQUISITION

Project Description

The City's Wastewater Treatment Plant requires additional land to eventually expand and meet the
growing needs of this community. The available land near the existing facility is limited and purchasing
property now will secure any future expansions approved by the Council.




Budgeted Revenues and Sources                Received as           2005            2006          Total
                                              of 12/31/04         Budget         Request
Wastewater Fund                                           -                -      2,000,000     2,000,000
Total Budgeted                               $            -   $            -   $ 2,000,000    $ 2,000,000

Budgeted Expenditures and Uses                Spent as of          2005            2006          Total
                                               12/31/04           Budget         Request
Land Acquisition                                         -                 -      2,000,000     2,000,000
Total Budgeted                               $           -    $            -   $ 2,000,000    $ 2,000,000

Estimated Impact on Operating Budget
Acquisition of the property will have no fiscal impact on the annual operating budget.




City Of Bellingham, Washington                                                                 Page 361
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                             Fund                                                          2006
Capital Item                Source Description and Justification                          Budget

PUBLIC WORKS - STORM
*Annual Storm Overlay               Stormwater component to the Street Overlay
Improvements                SWUF    Program.                                                200,000
Annual Storm Replacement            Annual storm replacement projects - culvert
Projects                    SWUF    upgrades/repairs.                                       150,000
CBD Water Quality                   Build the Central Business District water quality
Facilities                  SWUF    facilities.                                             100,000
Fish Passage
Improvements/Padden                 Fish passage improvements, Padden Creek at
Creek at 30th               SWUF    30th.                                                   100,000
*Lake Whatcom - E.
Academy Water Quality               Treatment of storm water for a six-block area of
Facility                    SWUF    E. Academy.                                             250,000

Lake Whatcom - E. Oregon            Lake Whatcom - E. Oregon water quality
Water Quality Facility      SWUF    facility.                                                 50,000
Lake Whatcom - E.
Silverbeach Water Quality           Lake Whatcom - E. Silverbeach water quality
Facility                    SWUF    facility.                                               100,000
National Pollution
Discharge Elimination
System Dry Weather                  Inventory, test and monitor the City's storm
Monitoring                  SWUF    water systems to meet federal regulations.                50,000

TOTAL CAPITAL BUDGET FOR 2006 - PUBLIC WORKS STORM                                      $ 1,000,000

* See project summary following this table.




Page 362                                                       City Of Bellingham, Washington
                                                                         2006 Adopted Budget
                                                                                    Capital Budget


2006 Capital (continued)


                            ANNUAL STORM OVERLAY IMPROVEMENTS

Project Description

Storm replacements and upgrades associated with the current year overlay program. Potential water
quality systems upgrades are included in this element.




Budgeted Revenues and Sources             Received as           2005           2006            Total
                                           of 12/31/04         Budget         Request
Storm and Surface Water Fund                           -                -       200,000         200,000
Total Budgeted                            $            -   $            -   $   200,000   $     200,000
2007-2011 Estimated Need:
Storm and Surface Water Fund $200,000 per year.                                             1,000,000
Estimated Total Revenue                                                                   $ 1,200,000

Budgeted Expenditures and Uses             Spent as of          2005           2006            Total
                                            12/31/04           Budget         Request
Stormwater Project Construction                       -                 -       200,000         200,000
Total Budgeted                            $           -    $            -   $   200,000   $     200,000
2007-2011 Estimated Need:
Estimated construction costs are $200,000 per year for 2007-2011.                         $ 1,000,000
Estimated Total Expenditures                                                              $ 1,200,000

Estimated Impact on Operating Budget
Improving storm dainage systems in conjunction with the resurfacing progam may reduce maintenance
costs. However, these costs are intangible and are related to system reliability.




City Of Bellingham, Washington                                                                Page 363
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                      LAKE WHATCOM - E. ACADEMY WATER QUALITY FACILITY

Project Description

Design and construct a storm water facility to treat runoff from E. Academy Road area, as well as the
areas of Haggin, Huntington and Shepardson, north of Academy.




Estimated Project Total                                                                          Amount
2005 Adopted Budget                        Treatment of stormwater for a six-block area of         200,000
                                           E. Academy.
2006 Proposed Budget                       Treatment of stormwater for a six-block area of         250,000
                                           E. Academy.
Total Budgeted                                                                               $     450,000




Page 364                                                          City Of Bellingham, Washington
                                                                            2006 Adopted Budget
                                                                                        Capital Budget


2006 Capital (continued)


Lake Whatcom - E Academy Water Quality Facility (continued)

Budgeted Revenues and Sources                Received as         2005           2006               Total
                                              of 12/31/04       Budget         Request
Storm and Surface Water Fund                              -       200,000        250,000            450,000
Total Budgeted                               $            -   $   200,000    $   250,000      $     450,000

Budgeted Expenditures and Uses                Spent as of        2005           2006               Total
                                               12/31/04         Budget         Request
Interfund Engineering Services                           -         10,000         20,000             30,000
Stormwater Project Construction                          -        190,000        230,000            420,000
Total Budgeted                               $           -    $   200,000    $   250,000      $     450,000

Estimated Impact on Operating Budget
Water quality facilities increase the cost for maintenance because filter replacement is labor intensive and
the filter units are expensive. There may be an offsetting benefit to the cost for domestic water treatment.
There may also be an offsetting benefit to the cost of maintaining a healthy lake. Annual cost increase is
$2,130.




City Of Bellingham, Washington                                                                    Page 365
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                                Fund                                                             2006
Capital Item                   Source Description and Justification                             Budget

PUBLIC WORKS - SOLID WASTE
*Colony Wharf Property
Acquisition            SOL               Acquire property for remediation project.                2,970,000

TOTAL CAPITAL BUDGET FOR 2006 - PUBLIC WORKS SOLID WASTE                                     $ 2,970,000

* See project summary following this table.


                               COLONY WHARF PROPERTY ACQUISITION

Project Description

This project is related to the remediation of the Roeder Landfill. In this project, the City will purchase the
Colony Wharf properties on Roeder and C Streets. The City will work with the Port to remediate the
Roeder Landfill and Colony Wharf properties, then the City can sell or redevelop the Colony Wharf
properties.




Page 366                                                             City Of Bellingham, Washington
                                                                               2006 Adopted Budget
                                                                                       Capital Budget


2006 Capital (continued)

Colony Wharf Land Acquisition (continued)

Budgeted Revenues and Sources               Received as           2005            2006          Total
                                             of 12/31/04         Budget         Request
Solid Waste Fund                                         -                -      2,970,000     2,970,000
Total Budgeted                              $            -   $            -   $ 2,970,000    $ 2,970,000

Budgeted Expenditures and Uses               Spent as of          2005            2006          Total
                                              12/31/04           Budget         Request
Land Acquisition                                        -                 -      2,970,000     2,970,000
Total Budgeted                              $           -    $            -   $ 2,970,000    $ 2,970,000

Estimated Impact on Operating Budget
There will be no impact on the operating budget from this purchase as the City anticipates a lease-back
arrangement that keeps the existing businesses operating as long as possible, and includes property
management. The City will receive some additional lease income during the lease period.




City Of Bellingham, Washington                                                                Page 367
2006 Adopted Budget
Capital Budget


2006 Capital (continued)


                              Fund                                                              2006
Capital Item                 Source Description and Justification                              Budget

PUBLIC WORKS - FACILITIES
                                     Relamping of City facilities according to the City-
Energy Conservation           CMF    wide energy plan.                                           100,000
                                     Space planning for administration and Parks
Facilities Space Planning    FQET    facilities.                                                  30,000
Mt. Baker Theatre Facility
Repair                       FQET    Annual repairs to facility.                                  60,000
Municipal Court HVAC
System                       FQET    Municipal Court HVAC replacement.                            50,000
Police Building Painting     FQET    Paint exterior of Police Department building.                75,000

TOTAL CAPITAL BUDGET FOR 2006 - PUBLIC WORKS FACILITIES                                    $     315,000



PUBLIC WORKS - OPERATIONS
Fleet Hardware
Replacement                FL        New server.                                                  15,000
Fleet Heavy Duty Work                Replacement due to life cycle and mechanical
Equipment Replacements     FL        condition.                                                  508,000
Fleet Other Machinery and            Replacement due to life cycle and mechanical
Equipment Replacements     FL        condition.                                                  103,000
Fleet Software
Replacement                FL        Due to failing software and incorrect data.                 250,000
Fleet Transportation                 Replacement due to life cycle and mechanical
Equipment Replacements     FL        condition.                                                 1,030,000
                           WF/
GIS System Improvements WWF/         Geographic Information System improvements
& Implementation          SWUF       and implementation.                                         105,000
                           WF/       Remaining costs to implement new utility billing
Utility Billing System    WWF        system.                                                      31,159

TOTAL CAPITAL BUDGET FOR 2006 - PUBLIC WORKS OPERATIONS                                    $ 2,042,159



PUBLIC WORKS - TRANSPORTATION MANAGEMENT
Depot Market Tenant
Space Improvements    PRK   Anchor tenant spaces at Depot Market Square.                         150,000
Half Ton Truck        PRK   Fleet addition for parking lot maintenance.                           30,000
Pay Stations          PRK   Meter Replacement Program.                                            50,000

TOTAL CAPITAL BUDGET FOR 2006 - PUBLIC WORKS TRANSPORTATION                                $     230,000




Page 368                                                           City Of Bellingham, Washington
                                                                             2006 Adopted Budget
                                                                                        Capital Facilities Plan


                   2006 - 2011 CAPITAL FACILITIES PLAN
Purpose

The Capital Facilities Plan (CFP) is a strategic six-year financing plan matching the costs of
future capital improvements and purchases to anticipated revenues. The CFP establishes
priorities by estimating costs, identifying funding sources and proposing an implementation
schedule for all facility or infrastructure-related capital projects, acquisitions and
maintenance.

The CFP is a six-year rolling plan that is revised annually to reflect varying conditions. The
CFP includes proposed 2006 capital expenditures for City Council adoption and an estimate
of future capital needs for 2007 – 2011 to guide future capital decisions. The adoption of
the CFP contained in this budget amends the Bellingham Comprehensive Plan and the list
of projects contained herein shall be considered a part of the Capital Facilities element of
the Comprehensive Plan. The CFP also incorporates the Bellingham School District’s 2004
– 2009 Capital Facilities Plan by reference.

Only the expenditures and appropriations for 2006 are binding financial commitments. The
projects identified for the remaining five years may be altered due to cost or varying
conditions.

Bellingham CFP Process

The 2006 - 2011 CFP was developed by soliciting requests from all departments with
priorities established by the Mayor. The projects were identified in accordance with the
following policy documents previously adopted by City Council:

•   The Bellingham Comprehensive Plan
•   Bellingham Comprehensive Drainage Plan
•   Sewer/Water Service Area Plan
•   Six-Year Transportation Improvement Plan
•   Fire System Plan
•   Visions for Bellingham
•   County-Wide Planning Policies
•   Police Facility Study Master Plan
•   Shoreline Management Program
•   Redevelopment Plans (Downtown Strategy, Ohio Street, Central Waterfront, City Center
    Master Plan)
•   Other Council and Mayor Directives
•   Park and Recreation Master Plan
•   Community Development Three-Year Plan



Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

City Of Bellingham, Washington                                                                            Page 369
2006 Adopted Budget
Capital Facilities Plan


Existing City Assets

Substantial investment by the public and the City over the years has resulted in a very large
asset base for Bellingham's 72,320 residents and approximately 5,200 businesses. There
also are approximately 3,200 businesses registered to operate in Bellingham that are
located elsewhere. The City’s current physical plant consists of:

•   Public buildings, including some leased space and commercial rental space.
•   Drainage and stormwater control property and detention facilities.
•   Park and recreation property, equipment and facilities including playgrounds, spray
    pools, athletic fields/courts, trails, beaches, street trees, sports stadiums, an aquatic
    facility, a cemetery and a golf course.
•   Public library facilities and materials.
•   Police facilities and vehicles.
•   Fire suppression and emergency medical service facilities, vehicles and equipment.
•   Streets, sidewalks, street lights and signals.
•   Water mains, customer services, a filtration plant, pump stations and storage reservoirs.
•   Sanitary sewer mains, a treatment plant and pump stations.
•   Vehicles and equipment.

Renewal and replacements for the street, water and sewer systems are included in the
capital budget due to the large cost and nature of work done. These programs include the
resurfacing of existing streets and the replacement of worn out water and sewer lines.

CFP Priorities

Five priorities established by the Mayor and adopted by the City Council in 1987 provide a
guide to selecting which projects will provide the most public benefit.

According to these established priorities, CFP projects must:
1. Resolve an emergency situation threatening the health, safety or welfare of citizens or
   which creates an immediate danger to City operations.
2. Replace existing capital items essential to continued operations or priority programs or
   services.
3. By itself or jointly with another public or private entity, generate an immediate or cost-
   effective, long-term income-producing return for the City in the form of taxes, firm jobs or
   retention of current revenues which would otherwise be lost.
4. Produce measurable cost-benefit through reduced operating costs to the City (generally
   public buildings, remodeling or other public improvements).
5. Increase overall quality of life even if not generating revenue, or, while generating some
   revenue, increase benefits to the General Fund which exceed the net of revenue and
   cost of construction.

The projects recommended for 2006 reflect these priorities.


Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

Page 370                                                                  City Of Bellingham, Washington
                                                                                    2006 Adopted Budget
                                                                                        Capital Facilities Plan


Funding Strategy

The demand for capital improvements exceeds the City's current ability to fund these
projects. The strategy to fund these projects also reflects fiscal constraints to meet
immediate needs while maintaining the flexibility to fund additional projects as the City's
financial status improves. This strategy is reflected in the following funding policy:

Capital improvement projects will be funded by the following sources, in order:
1. Use restricted funds (i.e., wastewater, water, streets) to fund their respective projects
   and include projects that can generate other tax revenues through job creation or
   expanding the tax base.
2. Utilize existing levy funds for Park improvements and acquisitions (i.e., Greenways).
3. Utilize Real Estate Excise Tax funds for capital improvements, as allowed by law.
4. Continue General Fund allocation for major capital outlay purchases. The 2006
   allocation is $563,196, with an expectation that the City will receive $303,288 in grant
   funding for one of the purchases.
5. Continue funding the Capital Maintenance Fund for 2006 and thereafter based on
   current estimates. The actual General Fund allocation for 2006 is $250,000. Future
   funding is increased at the rate of $50,000 per year.
6. Use new bonds to finance "must-fund" priority projects where sources 1-3 above are
   insufficient.
7. Fund remainder of CFP projects as local tax revenues become available or financial
   assistance is obtained from the state, federal or private sources.

The expenditures for all 2006 items are incorporated into their respective groups elsewhere
in the City budget. Listed on the following pages, in further detail, are the major capital
improvement projects for 2006 and projects proposed for 2007 – 2011. The projects either
have an identified funding source specified, or are listed as “unfunded”.




Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

City Of Bellingham, Washington                                                                            Page 371
2006 Adopted Budget
Capital Facilities Plan


Capital Facilities Plan (continued)


                                                                     Cost in Thousands
  CAPITAL FACILITIES PLAN
                                                 2006       2007       2008     2009           2010        2011

FUNDED PROJECT SUMMARY
Fire                                               617         373         194        711         167        182
Police                                              51          36          36         36          36          -
Judicial and Support Services                    1,600           6           -          8           -          -
Parks and Recreation                             6,082       1,606       1,479      1,619       1,603      1,436
Library                                            406           -           -          -           -          -
Museum                                             148         367          13          -           -          -
Planning and Community Development                 318         237         164        165         167        168
Human Resources                                      8           -           -          -           -          -
Information Technology Services                    612         214         226        246         246        247
Legal                                                -          10           -          -           -          -
Executive                                            -           -           -         14           -          -
Non Departmental                                   616       1,073       1,238      1,402       1,574      1,794
Public Facilities District                       2,398       8,350       4,421          -           -          -
Public Works - Streets                          11,352      11,410       4,560      9,060       2,810      2,660
Public Works - Water                            16,232      10,375       3,306     13,937       7,036      2,970
Public Works - Wastewater                        5,677       7,665       5,821     10,312      10,800     12,050
Public Works - Stormwater                        1,000       2,350       2,600      2,500       1,400      1,400
Public Works - Solid Waste                       2,970           -           -          -           -          -
Public Works - Fleet                             1,906       1,236       1,523        819       1,558      1,113
Public Works - Facilities                          315         160         160        160         160        160
Public Works - Operations                          136         105         105        105           -          -
Public Works - Transportation                      230          50          50         50          50         50
Public Works - Engineering                           -         200         200        100         100        100

TOTAL FUNDED PROJECTS                           52,674      45,823      26,096     41,244      27,707     24,330




Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

Page 372                                                                  City Of Bellingham, Washington
                                                                                    2006 Adopted Budget
                                                                                        Capital Facilities Plan


Capital Facilities Plan (continued)


                                             FUNDING SOURCES

                Abbreviations in the "Fund Source" columns represent the following funds


 FUND SOURCE        FUND NAME
AFDE                Asset Forfeiture/Drug Enforcement Fund
ASF                 Arterial Street Fund
BGL                 Beyond Greenways Levy Fund
BOND                Bond Proceeds Go To Fund Indicated
CDBG                Community Development Block Grant Fund
CEM                 Cemetery Fund
CIVIC               Civic Field Improvement Fund
CMF                 Capital Maintenance Fund
CRF                 Computer Reserve Fund
DISP                Public Safety Dispatch Fund
DOE                 State Department of Ecology Grant
DSF                 Development Services Fund
FEMA                Federal Emergency Management Administration Grant
FHWA                Federal Highway Administration Grant
FL                  Fleet Administration Fund
FQET                First 1/4% Real Estate Excise Tax Fund
GF                  General Fund
IAC                 State Interagency Committee for Outdoor Recreation Grant
ISPK                State or Local Intergovt Service for Park Facilities
ISST                State or Local Intergovt Service for Road/Street Construction
ISWA                State or Local Intergovt Service for Water Construction
LOAN                Intergovt Loan Proceeds
MED1                Medic One Fund
PFD                 Public Facilities District Fund
PKA                 Parksite Acquisition Fund
PRI                 Private Development Fees, Reimbursement or Donation
PRK                 Parking Services Fund
SOL                 Solid Waste Fund
SQUAL               Squalicum Park/Olympic Fund
SQET                Second 1/4% Real Estate Excise Tax Fund
STR                 Street Fund
SWUF                Surface Water Utility Fund
TEL                 Telecommunications Fund
TIB                 State Transportation Improvement Board Grant
UF                  Unfunded
WF                  Water Fund
WFWS                Water Fund - Watershed
WWF                 Wastewater Fund



Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

City Of Bellingham, Washington                                                                            Page 373
2006 Adopted Budget
Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                              Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007         2008     2009   2010          2011

FIRE DEPARTMENT
Funded Items
Broadway Fire Station Interior
Painting                                   FQET               -          -        11          -          -            -
Broadway Fire Station Office
Carpet                                     FQET               -          -         -        15           -            -
Broadway Fire Station Upstairs
Carpet                                     FQET               -        -           -         -          9             -
Cardiac Monitor/Defibrilator               MED1               -      180           -         -         24             -
Copier - Fire Admininistration              GF                -       13           -         -          -             -
Copier - Fire Back Office                   GF                -        4           -         -          -             -
Deemer Fire Station Carpet                 FQET               -        -           -        12          -             -
Deemer Fire Station Interior
Painting                                   FQET               -          -        16         -          -         -
Field Computers                            MED1               -          -        31        11         11        12
Harris Fire Station Carpet                 FQET               -          -        11         -          -         -
Harris Fire Station Exterior
Painting                                  FQET                -        -          11          -          -            -
Harris Fire Station Painting              FQET                -       16           -          -          -            -
                                          MED1/
Headquarters Office Remodel               FQET             60            -         -          -          -            -
Indian Street Fire Station Exterior
Painting                                   FQET               -        8           -          -          -            -
Indian Street Fire Station Upstairs
Carpeting                                 FQET              6          -           -        -          -          -
Medic 5 Facility                          MED1              -          -           -      500          -          -
Medic Unit                                MED1              -        135           -      146          -        158
Northwest Fire Station Carpet             FQET              -          5           -        -          -          -
Northwest Fire Station Painting           FQET             15          -           -        -          -          -
Rechassis Medic Unit                      MED1             95          -         102        -        111          -
Staff Car                                 MED1             50          -           -        -          -          -
Thermal Imaging Camera                     GF              12         12          12       12         12         12
Vehicle Diesel Exhaust Capture            FEMA/
Systems                                    GF             379            -         -         -           -            -
Yew Street Station Painting               FQET              -            -         -        15           -            -

Total Funded                                              617        373         194      711        167        182




Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

Page 374                                                                     City Of Bellingham, Washington
                                                                                       2006 Adopted Budget
                                                                                        Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                              Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007         2008     2009   2010            2011

FIRE DEPARTMENT (continued)
Unfunded Items
Classroom / Office                           UF               -          -         -      400            -            -

Total Unfunded                                                -          -         -      400            -            -

TOTAL FIRE                                                617        373         194    1,111        167        182



POLICE
Funded Items
Access upgrade                             DISP            15          -           -         -          -             -
Undercover Vehicles                        AFDE            36         36          36        36         36             -

Total Funded                                               51         36          36        36         36             -

Unfunded Items
Phase II of Police Headquarters              UF               -          -         -          -   10,000              -

Total Unfunded                                                -          -         -          -   10,000              -

TOTAL POLICE                                               51         36          36        36    10,036              -



JUDICIAL AND SUPPORT SERVICES
Funded Items
Copier - Municipal Court               GF                   -          -           -         8           -            -
Copier - Records                       GF                   -          6           -         -           -            -
Jail Construction - City Contribution FQET              1,600          -           -         -           -            -

Total Funded                                            1,600          6           -         8           -            -

TOTAL JUDICIAL AND SUPPORT SVCS                         1,600          6           -         8           -            -




Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

City Of Bellingham, Washington                                                                               Page 375
2006 Adopted Budget
Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                              Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007         2008     2009   2010          2011

PARKS AND RECREATION DEPARTMENT
Funded Items
Acoustic Tiles at Aquatic Center   FQET                       -        -          60          -          -            -
Aquatic Center Patio Enclosure     FQET                       -      150           -          -          -            -
                                   SQET/
Big Rock Area Trails                STR                   215          -           -         -           -            -
Bloedel Building Painting          SQET                     -         25           -         -           -            -
Civic Field Sports Field Relamping FQET                     -          -           -        20           -            -
Civic Field Storage Building and
Track Resurfacing                  SQET                   200            -         -          -          -            -
                                   WWF/
Civic Athletic Complex             SQET/
Improvements                       CIVIC                1,031          -           -          -          -            -
Copier - Aquatics                   GF                     11          -           -          -          -            -
Copier - Park Operations            GF                      -          8           -          -          -            -
Fleet Addition - Forestry Crew
Service Vehicle                     GF                     35            -         -          -          -            -

Fleet Addition - Mower Attachment            GF              7           -         -          -          -            -
Geri Field Sports Lighting
Renovation                                 SQET           350          -           -         -          -         -
Irrigation System Renovations              CMF             15         15          15        15         15        15
Labor Reimbursement for Qualified
Projects - BGL                              BGL            42         43          44        45         46        47
Labor Reimbursement for Qualified
Projects - SQET                            SQET            58        113         115      117        120        122
Lake Padden Breakwater                     SQET             -          -           -        -         40          -
Land Acquisition - Greenway
Program                                     BGL           600            -         -          -          -            -
Land Acquisition - Neighborhood            PKA/
Park in North Bellingham                   FQET           965         10          10      736        736         11
Mausoleum Interior Renovation              CMF             81          -           -        -          -          -
Miscellaneous Community Parks
Construction                               SQET               -      200         200      200        200        200
                                           FQET/
Neighborhood Park Construction             SQET              -       600         600      100        100        625
Park and Sports Field Lighting             FQET              5         5           6        6          6          6
Park Sign Replacement                       CMF              5         5           5        7          7          7
Parks Facility Asphalt Patching
and Resurfacing                            SQET            60         55         100      100          50             -
Playground Equipment Parts                 CMF              5          5           7        7           7             7
Playground Renovation - Franklin
and Carl Lobe Parks                        SQET           217            -         -          -          -            -
Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

Page 376                                                                     City Of Bellingham, Washington
                                                                                       2006 Adopted Budget
                                                                                        Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                              Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007         2008     2009   2010            2011

PARKS AND RECREATION DEPARTMENT (continued)

Plumbing Equipment - Remote
Pipe Video Camera                            GF              8           -         -          -          -            -
Reconnection of Electrical Supply
to Park Light in Rockhill Park             FQET              5           -         -          -          -            -
Replacement of Fairhaven Park
Entry Columns                              SQET             -          -          15        -          -        120
Roof Replacements                          FQET            10         15          15       15         15         15
Sidewalk & Curb Replacement                FQET            10         25          25       25         30         30
Sidewalks, Paths and Trails                FQET             -        225         225      200        200        200
                                            IAC/
                                          SQUAL/
                                          SQET/
Squalicum Creek Park                       WWF            600          -           -         -          -         -
Tennis Court Resurfacing                   SQET             -         60           -         -          -         -
Trail Surface/Drainage Repairs             FQET            15         15          15        15         20        20
Trailhead Signs                            FQET            22         22           -         -          -         -
Vehicle - Cemetery                          CEM             -          -          12         -          -         -
                                           ISPK/
Whatcom Creek Trail                         BGL         1,310         10          10        11         11        11
                                           WWF/
Whatcom Falls Restroom                     SQET           200            -         -          -          -            -

Total Funded                                            6,082     1,606        1,479    1,619      1,603       1,436




Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

City Of Bellingham, Washington                                                                               Page 377
2006 Adopted Budget
Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                            Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007       2008     2009   2010            2011

PARKS AND RECREATION DEPARTMENT (continued)
Unfunded Items
Bay to Baker Trail              UF      -     200                            2,000          -            -            -
Big Rock Garden Park            UF      -     150                              900          -            -            -
Chuckanut Bay Park              UF      -       -                                -        500            -            -
Community Park - Woodstock
Farm                            UF      -     500                              500            -          -            -
Community Park Improvements -
Boulevard Park                  UF      -     200                            2,000           -         -              -
Fairhaven Rose Garden           UF      -      50                              175           -         -              -
King Mountain Trail             UF      -       -                                -          50       500              -
Land Acquisition - Community
Parks North                     UF      -   5,000                                -      5,000          -          -
Land Acquisition - Trails North UF      -     500                              500      1,000          -          -
Little Squalicum Park           UF      -       -                              200      2,000          -          -
Lookout Mountain Trail          UF      -       -                                -         50        500          -
Northridge Park Development     UF      -   2,000                                -          -          -          -
Orleans / Illinois Trail        UF      -       -                              200          -          -          -
Samish Crest Trail              UF      -       -                            2,000          -          -          -
Sidewalks, Paths and Trails     UF      -       -                                -        200      2,000          -
Squalicum Creek Park            UF      -       -                                -          -          -     10,000

Total Unfunded                                                -    8,600     8,475      8,800      3,000     10,000

TOTAL PARKS AND RECREATION                              6,482     10,206     9,954     10,419      4,603     11,436




Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

Page 378                                                                   City Of Bellingham, Washington
                                                                                     2006 Adopted Budget
                                                                                        Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                              Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007         2008     2009   2010            2011

LIBRARY
Funded Items
New Library Design                         FQET           371            -         -          -          -            -
Structural Review - Fairhaven
Branch                                     FQET            35            -         -          -          -            -

Total Funded                                              406            -         -          -          -            -

Unfunded Items
Land Acquisition - Library                   UF               -    3,590           -          -          -            -
New Library                                  UF               -    9,375       9,375          -          -            -

Total Unfunded                                                -   12,965       9,375          -          -            -

TOTAL LIBRARY                                             406     12,965       9,375          -          -            -



MUSEUM
Funded Items
Copiers - Museum                            GF             13         13          13          -          -            -
Fire Suppression - Main Building           FQET             -        229           -          -          -            -
Fire Suppression - Syre Education
Center                                     FQET               -      125           -          -          -            -
Fire Suppression Project
Consultant                                 FQET            40            -         -          -          -            -
Floor Maintenance                           GF             13            -         -          -          -            -
Printer Replacement                         GF              8            -         -          -          -            -
Repair and Paint Facade                    FQET            20            -         -          -          -            -
Upgrade Security System                    CMF             54            -         -          -          -            -

Total Funded                                              148        367          13          -          -            -

Unfunded Items
Rehabilitate Syre Ed Center                  UF               -      500           -          -          -            -
Replace HVAC System                          UF               -    1,363           -          -          -            -
Restore 1892 Old City Hall                   UF               -      500           -          -          -            -
Seismic Upgrade - Main Building              UF               -    2,803           -          -          -            -

Total Unfunded                                                -    5,166           -          -          -            -

TOTAL MUSEUM                                              148      5,533          13          -          -            -


Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

City Of Bellingham, Washington                                                                               Page 379
2006 Adopted Budget
Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                              Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007         2008     2009   2010          2011

PLANNING - COMMUNITY DEVELOPMENT
Funded Items
600 W. Holly / Sash and Door
Redevelopment                     CDBG                     74         76           -          -          -            -
Copier - Planning                  GF                      20          -           -          -          -            -
Interactive Voice Response
System                             DSF                     35            -         -          -          -            -
Labor Reimbursement for Qualified
Projects - CDBG                   CDBG                     34         36          39        40         42        43
                                  FQET/
Neighborhood Initiatives Program  CDBG                    155        125         125      125        125        125

Total Funded                                              318        237         164      165        167        168

TOTAL PLANNING - COMM. DEV.                               318        237         164      165        167        168



HUMAN RESOURCES
Funded Items
HR Co-Location/Remodel                     FQET              8           -         -          -          -            -

Total Funded                                                 8           -         -          -          -            -

TOTAL HUMAN RESOURCES                                        8           -         -          -          -            -




Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

Page 380                                                                     City Of Bellingham, Washington
                                                                                       2006 Adopted Budget
                                                                                        Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                              Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007         2008     2009   2010            2011

INFORMATION TECHNOLOGY SERVICES
Funded Items
Agenda Preparation Software  CRF                           75          -           -        -          -          -
Backup System - Expand       CRF                           20          -           -        -          -          -
Central Network Servers      CRF                           46          -           -        -          -          -
Computer Hardware           GF/CRF                          6        206         226      246        246        247
Copier - ITSD                 GF                            -          8           -        -          -          -
HR/Payroll System            CRF                          352          -           -        -          -          -
Network Storage - Expand     CRF                           33          -           -        -          -          -
Telephone System             TEL                           80                               -          -          -

Total Funded                                              612        214         226      246        246        247

Unfunded Items
Telephone System                             UF               -   1,000          400        -            -            -
Various Technology Needs                     UF               -     167          427    2,227            -            -

Total Unfunded                                                -   1,167          827    2,227            -            -

TOTAL INFO TECH SERVICES                                  612     1,381        1,053    2,473        246        247



LEGAL
Funded Items
Copier - Legal                               GF               -       10           -          -          -            -

Total Funded                                                  -       10           -          -          -            -

TOTAL LEGAL                                                   -       10           -          -          -            -



EXECUTIVE
Funded Items
Copier - Executive                           GF               -          -         -        14           -            -

Total Funded                                                  -          -         -        14           -            -

TOTAL EXECUTIVE                                               -          -         -        14           -            -




Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

City Of Bellingham, Washington                                                                               Page 381
2006 Adopted Budget
Capital Facilities Plan


Capital Facilities Plan (continued)


NON DEPARTMENTAL
Funded Items
Civic Field Debt Service                   SQET           616        623       638        652        674        694
                                           CMF/
                                           FQET/
Undetermined Future Needs                  SQET              -       450       600        750        900      1,100

Total Funded                                              616     1,073      1,238      1,402      1,574      1,794

TOTAL NON DEPARTMENTAL                                    616     1,073      1,238      1,402      1,574      1,794



PUBLIC FACILITIES DISTRICT
Funded Items
Art and Children's Museum                   PFD         2,398     7,592            -          -          -            -
Mt. Baker Theatre Renovations
Phase II                                    PFD              -       758     4,421            -          -            -

Total Funded                                            2,398     8,350      4,421            -          -            -

TOTAL PUBLIC FACILITIES DISTRICT                        2,398     8,350      4,421            -          -            -




Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

Page 382                                                                   City Of Bellingham, Washington
                                                                                     2006 Adopted Budget
                                                                                        Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                              Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007         2008     2009   2010            2011

PUBLIC WORKS - STREETS
Funded Items
                                           ISST/
30th and Donovan Street                   FHWA/
Improvements                                STR         1,000            -         -          -          -            -
Annual Signal Improvement
Program                                     STR           625       225          225      225        225         225
Annual Street Resurfacing                   STR         3,000     1,500        1,500    1,500      1,500       1,500
Annual Traffic Calming Program              STR           200       200          200      200        200         200

Bakerview - Irongate Traffic Signal PRI/STR                   -          -        50      400            -            -

Bellingham Waterfront Restoration
Phase 1 - Laurel Street                     STR           100        100         100          -          -            -
Bellingham Waterfront Restoration -        ISST/
Railroad                                    STR               -          -         -    5,000            -            -

Biennial Street Light Replacement           STR           150          -         150          -      150              -
Birchwood Avenue Improvements               STR           200          -           -          -        -              -
Bridge Rehabilitation Program               STR             -        350           -          -        -              -
Downtown Street and Sidewalk
Improvements                               SQET               -      150         150      150        150        150
Electric Ave Pedestrian and Bike
Improvements                               SQET               -      100         450          -          -            -
                                           FQET/
Flora Streetscape                          SQET           250     1,750            -          -          -            -
Fraser - Puget Pedestrian and Bike
Improvements                                STR           450        200           -          -          -            -
Holly Street Gateway - Ellis to            STR/
Railroad                                   SQET         1,500            -         -          -          -            -
James Street - Sunset to City
Limits                                      STR               -          -       800          -          -            -
James Street Pedestrian and Bike
Improvements - Sunset to City              FQET/
Limits                                     SQET           100        200         750      950            -            -
McLeod Road Pedestrian
Improvements                               SQET               -          -       100      400            -            -
Neighborhood Traffic Safety
Program                                     STR            35         35          35        35         35        35
Northwest Pedestrian                       ISST/
Improvements - McLeod to                   STR/
Bakerview                                  SQET           500        550           -          -          -            -

Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

City Of Bellingham, Washington                                                                               Page 383
2006 Adopted Budget
Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                              Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007         2008     2009   2010          2011

PUBLIC WORKS - STREETS (continued)
Railroad and Maple Street
Improvements                          ASF                 300            -         -          -          -            -
                                    FHWA/
San Juan Boulevard Phase I            STR               1,042         50           -         -           -            -
San Juan Boulevard Phase II           STR                   -          -          50        50           -            -
                                   ISST/TIB/
                                    FHWA/
Sunset Dr. - Woburn to City Limits    STR                 900      6,000           -          -        -          -
Transportation Options Project       SQET                   -          -           -          -      550        550
West Street Pedestrian
Improvements                          STR                 500            -         -          -          -            -
Woburn - Alabama Right Turn
Lane                                  STR                 500            -         -          -          -            -
Yew Street Pedestrian
Improvements                         FQET                     -          -         -      150            -            -

Total Funded                                          11,352      11,410       4,560    9,060      2,810      2,660

Unfunded Items
Bellingham Waterfront Restoration -
Laurel Street                                UF               -          -         -    8,500            -            -
Bellingham Waterfront Restoration -
Railroad                                     UF               -          -         -   17,500            -            -
San Juan Boulevard Phase II                  UF               -          -         -    4,898            -            -

Total Unfunded                                                -          -         -   30,898            -            -

TOTAL PUBLIC WORKS - STREETS                          11,352      11,410       4,560   39,958      2,810      2,660




Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

Page 384                                                                     City Of Bellingham, Washington
                                                                                       2006 Adopted Budget
                                                                                        Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                              Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007         2008     2009   2010            2011

PUBLIC WORKS - WATER
Funded Items
Annual Water Main Replacement
Program                                     WF            250     1,300        1,350    1,400      1,600       1,600
Compactor                                   WF             12         -            -        -          -           -
Flash Mixer at Water Treatment
Plant                                       WF             11         55           -          -          -            -
Gladstone Water Main                        WF              -        300           -          -          -            -
James Street Rd Reservoir                   WF              -        400           -          -          -            -

Kearney Rd Booster Pump Station             WF                -      500           -          -          -            -
Kellogg Rd Pipeline Upgrades                WF                -      350           -          -          -            -
                                          BOND/
King Mt Reservoir (Cordata)                 WF                -      500           -    3,500            -            -
                                          ISWA/
                                          BOND/
Meridian Water Main Extension               WF                -   1,650            -          -          -            -
Mt Baker Hwy Replacement -
Phase II                                    WF                -      300           -          -          -            -
                                          ISWA/
Nooksack Diversion Passage -              LOAN/
Intake                                   DOE/WF         6,600            -         -          -          -            -
Otis Street Pump Station                    WF            500            -         -          -          -            -
                                          BOND/
Padden Reservoir Phase II                   WF                -      500           -    4,000            -            -
Security Improvements for Water
System                                      WF            200        200         200      200            -            -
Sunset Heights Reservoir
Demolition                         WF                     250            -         -          -          -            -
                                  BOND/
Transmission Main Upgrades         WF                         -   1,360            -          -          -            -
Transmission Main Upgrades -      BOND/
21st Street                        WF                         -      650           -          -          -            -
Transmission Main Upgrades -      BOND/
Academy Road                       WF                         -      360           -          -          -            -
Transmission Main Upgrades -      BOND/
June Road                          WF                         -      300           -          -          -            -
                                  BOND/
Upper Yew Street Reservoir         WF                   5,000        500           -    3,500          -              -
Water Modeling                     WF                       -        100           -        -        100              -
Water Treatment Plant Expansion - BOND/
Phase II                           WF                         -          -       400          -    4,000              -

Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

City Of Bellingham, Washington                                                                               Page 385
2006 Adopted Budget
Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                              Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007         2008     2009   2010          2011

PUBLIC WORKS - WATER (continued)
WTP Filter Upgrades           WF                          350            -         -          -          -            -
                             BOND/
Yew St Transmission Main      WF                            -        550           -        -          -          -
Watershed Land Acquisitions  WFWS                       3,059        500       1,356    1,337      1,336      1,370

Total Funded                                          16,232      10,375       3,306   13,937      7,036      2,970

Unfunded Items
Nooksack Diversion Dam Repair                UF               -    3,000           -          -          -            -

Total Unfunded                                                -    3,000           -          -          -            -

TOTAL PUBLIC WORKS - WATER                            16,232      13,375       3,306   13,937      7,036      2,970




Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

Page 386                                                                     City Of Bellingham, Washington
                                                                                       2006 Adopted Budget
                                                                                        Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                              Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007         2008     2009   2010            2011

PUBLIC WORKS - WASTEWATER
Funded Items
Alternate Post Point Outfall               WWF          1,200            -         -          -          -            -
Annual Sewer Replacement
Program                                    WWF          1,250     1,300        1,350    1,400      1,400       1,400
Annual Trunk Main Upgrades                 WWF            477       875        1,441    1,000      1,200       1,200
Depot Market Restrooms                     WWF            150         -            -        -          -           -
Edgemoor Lift Station Demolition           WWF              -       250            -        -          -           -
Flow Monitoring Stations                   WWF              -       100            -      100          -         100
Hydraulic Modeling Software                WWF              -         -           50        -          -           -
Meridian Sewer Main Extension              WWF              -     2,200            -        -          -           -
Meridian Street Lift Stations              WWF              -       250          250      500          -           -
Northwest Avenue                           WWF              -         -            -      962          -           -
Roeder Avenue Force Main                   WWF              -         -          100      100      2,500       2,500
Roeder Avenue Lift Station                 WWF              -         -          250      250      4,500       4,500
Roeder Avenue Trunk Sewer                  WWF              -       250        1,300        -          -           -
Secondary Trunk Upgrades                   WWF              -       440          580    1,000      1,200       1,600
Squalicum Trunk Sewer                      WWF              -       700            -        -          -           -
WWTP Facility Capacity
Expansion                                  WWF              -        500         500        -            -        -
WWTP Facility Construction                 WWF              -          -           -    5,000            -      750
WWTP Facility Power Upgrade                WWF            600          -           -        -            -        -
WWTP Facility Property
Acquisition                                WWF          2,000          -           -          -          -            -
Yew St Rd Sewer Main - South               WWF              -        800           -          -          -            -

Total Funded                                            5,677     7,665        5,821   10,312     10,800      12,050

TOTAL PUBLIC WORKS - WASTEWATER                         5,677     7,665        5,821   10,312     10,800      12,050




Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

City Of Bellingham, Washington                                                                               Page 387
2006 Adopted Budget
Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                              Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007         2008     2009   2010          2011

PUBLIC WORKS - STORMWATER
Funded Items
Annual Storm Overlay
Improvements                               SWUF           200        200         200      200        200        200
Annual Storm Replacement
Projects                                   SWUF           150        500         550      550        550        550
CBD Water Quality Facilities               SWUF           100        400         400      400        400        400
Cemetery Creek                             SWUF             -          -           -      950          -          -
Fish Passage Improvements                  SWUF             -        250         250      250        250        250
Fish Passage Improvements -
Design 2007 Projects                       SWUF               -       50           -          -          -            -
Fish Passage Improvements -
Padden Creek at 30th                       SWUF           100            -         -          -          -            -
Fish Passage Improvements -
Spring Creek at Kellogg                    SWUF               -      250           -          -          -            -
Lake Whatcom - Donald Avenue
Water Quality Facility                     SWUF               -      100           -          -          -            -
Lake Whatcom - E. Academy
Water Quality Facility                     SWUF           250            -         -          -          -            -
Lake Whatcom - E. Maryland
Water Quality Facility                     SWUF               -      100           -          -          -            -
Lake Whatcom - E. North Water
Quality Facility                           SWUF               -      100           -          -          -            -
Lake Whatcom - E. Oregon Water
Quality Facility                           SWUF            50            -         -          -          -            -
Lake Whatcom - E. Silverbeach
Water Quality Facility                     SWUF           100            -         -          -          -            -
Lake Whatcom - Flynn Water
Quality Facility                           SWUF               -          -       300          -          -            -
Lake Whatcom - Hayward Drive
Water Quality Facility                     SWUF               -      100           -          -          -            -
National Pollution Discharge
Elimination System (NPDES) Dry
Weather Monitoring                         SWUF            50         50          50          -          -            -
North Lincoln Creek Detention
Basin                                      SWUF               -      100           -        -            -            -
Padden Creek Daylighting                   SWUF               -      150         150      150            -            -
South Lincoln Creek Detention
Basin                                      SWUF               -          -       700          -          -            -

Total Funded                                            1,000     2,350        2,600    2,500      1,400      1,400


Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

Page 388                                                                     City Of Bellingham, Washington
                                                                                       2006 Adopted Budget
                                                                                        Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                              Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007         2008     2009   2010            2011

PUBLIC WORKS - STORMWATER (continued)
Unfunded Items
Padden Creek Daylighting     UF                               -          -         -          -    4,000              -

Total Unfunded                                                -          -         -          -    4,000              -

TOTAL PUBLIC WORKS - STORM                              1,000     2,350        2,600    2,500      5,400       1,400



PUBLIC WORKS - SOLID WASTE
Funded Items
Colony Wharf Property Acquisition           SOL         2,970            -         -          -          -            -

Total Funded                                            2,970            -         -          -          -            -

TOTAL PUBLIC WORKS - SOLID WASTE                        2,970            -         -          -          -            -



PUBLIC WORKS - FLEET
Funded Items
Fleet Hardware Replacement                   FL            15            -         -          -          -            -
Fleet Heavy Duty Work Equipment
Replacements                                 FL           508        386         483      243        494        342
Fleet Other Machinery and
Equipment Replacements                       FL           103        100         103      105        106        107
Fleet Software Replacement                   FL           250          -           -        -          -          -
Fleet Transportation Equipment
Replacements                                 FL         1,030        750         937      471        958        664

Total Funded                                            1,906     1,236        1,523      819      1,558       1,113

TOTAL PUBLIC WORKS - FLEET                              1,906     1,236        1,523      819      1,558       1,113




Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

City Of Bellingham, Washington                                                                               Page 389
2006 Adopted Budget
Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                              Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007         2008     2009   2010          2011

PUBLIC WORKS - FACILITIES
Funded Items
Energy Conservation                        CMF            100        100         100      100        100        100
Facilities Space Planning                  FQET            30          -           -        -          -          -
Mt. Baker Theatre Facility Repair          FQET            60         60          60       60         60         60
Municipal Court HVAC System                FQET            50          -           -        -          -          -
Police Building Painting                   FQET            75          -           -        -          -          -

Total Funded                                              315        160         160      160        160        160

TOTAL PUBLIC WORKS - FACILITIES                           315        160         160      160        160        160



PUBLIC WORKS - OPERATIONS
Funded Items
                                            WF/
GIS System Improvements &                  WWF/
Implementation                             SWUF           105        105         105      105            -            -
                                            WF/
Utility Billing System                     WWF             31            -         -          -          -            -

Total Funded                                              136        105         105      105            -            -

TOTAL PUBLIC WORKS - OPERATIONS                           136        105         105      105            -            -



PUBLIC WORKS - TRANSPORTATION
Funded Items
Depot Market Tenant Space
Improvements                PRK                           150          -           -         -          -         -
Half Ton Truck              PRK                            30          -           -         -          -         -
Pay Stations                PRK                            50         50          50        50         50        50

Total Funded                                              230         50          50        50         50        50

TOTAL PUBLIC WORKS -
TRANSPORTATION                                            230         50          50        50         50        50




Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

Page 390                                                                     City Of Bellingham, Washington
                                                                                       2006 Adopted Budget
                                                                                        Capital Facilities Plan


Capital Facilities Plan (continued)


                                           Fund                            Cost in Thousands
  CAPITAL FACILITIES PLAN
                                          Source       2006       2007       2008     2009   2010            2011

PUBLIC WORKS - ENGINEERING
Funded Items
Building Security, City-wide               FQET               -      200       200        100        100        100

Total Funded                                                  -      200       200        100        100        100

TOTAL PUBLIC WORKS - ENGINEERING                              -      200       200        100        100        100




Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

City Of Bellingham, Washington                                                                             Page 391
2006 Adopted Budget
Capital Facilities Plan




                                  This page intentionally left blank.




Expenditures for 2006 are authorized after budget adoption by the City Council. Expenditures identified for years
beyond 2006 are included for information and review of potential future needs. Their inclusion is not a request for
approval or budget authorization.

Page 392                                                                  City Of Bellingham, Washington
                                                                                    2006 Adopted Budget
                                                                            Long-Term Debt


                        LONG-TERM DEBT SUMMARY

The City borrows money to finance large capital projects, such as buildings and utility
infrastructure by issuing bonds. These financial obligations are paid off over time, typically
10 to 20 years. Our Moody’s bond rating is Aa3 for voted bond issues and A1 for non-voted
bond issues, judged to be of high quality by all standards. We are committed to maintaining
our good credit. We make all debt service payments on time and maintain adequate
reserves to address contingencies. We have relatively low outstanding debt and high debt
capacity for future bonding needs.

Bonds
1. Limited Tax General Obligation Bonds (LTGO)
   City Council approves a bond that will benefit the City as a whole. Principal and interest
   is paid from existing general revenues, subject to the levy limitation and the total tax
   limit. These are referred to as “Councilmanic” bonds.

2. Unlimited Tax General Obligation Bonds (UTGO)
   A ballot measure is presented to voters authorizing the issuance of debt for a project
   that will benefit the City as a whole. The voters authorize an increase in taxes to repay
   the bond principal and interest. This issue may authorize the City to exceed levy limits
   on taxation (excess levy). It is subject to the total tax limitation, as discussed in the
   sections on Property Tax and Limitations.

3. Revenue Bonds
   City Council approved bonds paid from revenues (not taxes) of a specific enterprise
   fund. Customers of these funds (water, parking, etc.,) pay a fee for services that cover
   operating and debt related costs.

4. Local Improvement District Bonds (LID)
   Special assessments levied on properties that specifically benefit from the improvement
   being financed. LID’s finance street, sewer, water and other capital projects. They are
   formed via two distinct methods: Resolution of Intention or Petition. The Resolution of
   Intention is initiated by the City. This method is rarely used and is generally limited to
   response to a health hazard. The Petition is initiated by area property owners. Both
   require the approval of a majority (the City prefers 70% approval) of the impacted
   property owners. Security for a LID bond issue is the real estate within the assessment
   boundaries. The City does not pledge its “full faith and credit” but is obligated to enforce
   the assessments. Consequently, interest rates on these bonds are also higher.

Legal Debt Capacity Limits
The amount of long-term debt that the City can incur is limited by state statute.
Washington’s statutory limitation on non-voted general obligation debt for cities is one and
one-half percent of the assessed value of all taxable property within the City at the time of
issuance. Voter approval is required to exceed this limit. An election to authorize debt must
have voter turnout of at least 40 percent of the last state general election, and of those
voting, 60 percent must vote in favor of issuance.


City Of Bellingham, Washington                                                       Page 393
2006 Adopted Budget
Long-Term Debt



The combination of voted and non-voted general obligation debt for city purposes, including
leases and contracts, may not exceed two and one-half percent of the assessed value of all
taxable property within the City.

The assessed value of all property in the City for the 2006 tax year is $6,635,005,499. This
provides a non-voted general obligation debt capacity of $99,525,082. The City has used
$34,613,276 of this capacity, leaving $64,911,806 available. The City’s total voted and non-
voted general obligation debt capacity is $165,875,137. Of this capacity, the City has
utilized $36,423,276. The remaining total voted and non-voted general obligation debt
capacity is $129,451,861.

                  Estimated Legal Debt Capacity Calculation
                              As of 12/31/06


    Assessed Value (2005 Tax Year)                                       $6,635,005,499

    Limited Tax General Obligation Debt Capacity
    (Nonvoted) @ 1 1/2% of Assessed Value                                    99,525,082
       Less: Outstanding Limited Tax General Obligation
       Bonds                                                34,435,000
       Less: Other Debt Obligations                            178,276
       Total Nonvoted Debt Outstanding                                       34,613,276
    Total Remaining Limited Tax General Obligation Debt
    Capacity (Nonvoted)                                                     $64,911,806

    Total General Obligation Debt Capacity @ 2 1/2% of
    Assessed Value                                                          165,875,137
       Total Nonvoted Debt Outstanding                      34,613,276
       Total Voted Debt Outstanding                          1,810,000
       Total Debt Outstanding                                                36,423,276
    Total Remaining General Obligation Debt Capacity
    (Voted and Nonvoted)                                                  $129,451,861




Page 394                                                  City Of Bellingham, Washington
                                                                    2006 Adopted Budget
                                                                                                    Long-Term Debt


                   Current Debt & Estimated Debt Capacity (in millions)



                  $135

                  $115

                                                           Total Debt Capacity
                  $95
                                                          (Voted & Non-Voted)

                  $75
       Millions




                  $55                                       Non-Voted Debt
                                                               Capacity                                  36.42
                                                                                    29.56
                  $35

                         12.54              12.4                 10.76
                  $15

                   $(5)
                      2001                  2002                  2003                 2004                     2005

                             Total Debt Capacity (Voted & Non-Voted)   Non-Voted Debt Capacity   Current Debt




City Of Bellingham, Washington                                                                                   Page 395
2006 Adopted Budget
Long-Term Debt


General Obligation Debt

        Outstanding General Obligation (GO) Bonds & Other Debt


                                  Issue     Maturity      Interest       Original      Redemptions Unmatured Debt
Name of Issue                      Date      Date          Rates         Amount        as of 12/31/05 as of 12/31/05
Unlimited Tax GO Bonds
1992 Fire UTGO Refunding         05/01/92 12/01/05       3.90%-6.45% $ 1,800,000       $ 1,800,000      $          -
2001 Fire UTGO                   04/01/01 12/01/11       4.00%-4.40%   2,800,000           990,000           1,810,000
Total Unlimited Tax GO Bonds                                           4,600,000         2,790,000           1,810,000

Other General Obligation Debt
Drake Property Note Payable      12/31/92 12/31/22             7.00%       225,000            46,724          178,276
Total Other General Obligation Debt                                        225,000            46,724          178,276

Limited Tax GO Bonds
1996 Roeder LTGO Refunding       06/01/96   12/01/12 4.20%-5.65%          4,195,000         1,735,000        2,460,000
1999 Municipal Court LTGO        05/15/99   08/01/10 4.25%-4.75%          3,420,000         1,010,000        2,410,000
2002 Parking LTGO                08/08/02   10/01/12 3.74%-3.74%          1,045,000           250,000          795,000
2004 Sportsplex LTGO             08/05/04   12/01/28 2.00%-4.625%         4,315,000           205,000        4,110,000
2004 PFD/Civic/Refunding LTGO    11/09/04   12/01/26   2.25%5.00%        16,375,000           410,000       15,965,000
2005 Solid Waste LTGO            12/08/05   12/01/25    4.15%-5.4%        8,695,000               -          8,695,000
Total Limited Tax GO Bonds                                               38,045,000         3,610,000       34,435,000

Other Obligations
Roeder Avenue PWTF Loan          04/29/87   04/01/07           1.00% $ 1,000,000       $   894,737             105,263
Woburn Street PWTF Loan          04/14/88   07/01/08           1.00%   1,000,000           841,228             158,772
Street Resurfacing PWTF Loan     07/01/02   07/01/22           0.50%   2,826,250           290,106           2,536,144
CERB Loan-Hannegan               09/23/85   09/23/05           7.00%     100,000           100,000                   -
CERB Loan-Woburn                 08/30/89   08/30/09           7.70%   1,133,082           756,823             376,259
Total Other Obligations                                              $ 6,059,332       $ 2,882,894           3,176,438

Total Long Term General Debt                                           $ 48,929,332    $ 9,329,618      $   39,599,714



       Annual Debt Service Requirements To Maturity For General
                            Obligation Debt


                      Bond           Bond               Other Debt       Other Debt
         Year       Principal       Interest             Principal        Interest          Total Debt
         2006        2,075,000       1,594,987              344,275           56,593          4,070,855
         2007        2,165,000       1,523,800              351,142           47,924          4,087,866
         2008        2,285,000       1,438,795              305,905           38,728          4,068,428
         2009        2,230,000       1,344,517              260,942           29,491          3,864,950
         2010        2,370,000       1,253,546                7,487           10,476          3,641,509
        Future      25,120,000      10,117,973           2,084,963           137,869         37,460,805
                  $ 36,245,000    $ 17,273,618         $ 3,354,714     $     321,081       $ 57,194,413




Page 396                                                               City Of Bellingham, Washington
                                                                                 2006 Adopted Budget
                                                                                                                           Long-Term Debt


                    Annual Cost of Principal and Interest Payments
                             On General Obligation Debt



  $4,500,000

  $4,000,000

  $3,500,000

  $3,000,000

  $2,500,000

  $2,000,000

  $1,500,000

  $1,000,000

   $500,000

        $-
               06

                     07

                           08

                                 09

                                       10

                                             11

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                                                      December 31, 2005
                                     GO Bonds - Nonvoted               Balance                          Payoff
                                      1996 Refunding                 2,460,000                           2012
                                      1999 Muni-Court                2,410,000                           2010
                                      2002 Parking                     795,000                           2012
                                      2004 Sportsplex                4,110,000                           2028
                                      2004 PFD/Civic/Refunding      15,965,000                           2026
                                      2005 Solid Waste               8,695,000                           2025
                                     GO Bonds - Voted
                                      2001 Fire                      1,810,000                               2011
                                     Other Debt
                                      Drake/Big Rock Garden            178,276                               2022
                                      Roeder PWTF Loan                 105,263                               2007
                                      Woburn PWTF loan                 158,772                               2008
                                      Street PWTF Loan               2,536,144                               2022
                                      CERB - Talbot                    376,259                               2009




City Of Bellingham, Washington                                                                                                             Page 397
2006 Adopted Budget
Long-Term Debt


Local Improvement District Bonds
Debt service requirements for local improvement bonds are met by the collection of
assessments levied against property owners. The assessments are liens against the
property and subject to foreclosure. A local improvement district guaranty fund has been
established as a reserve to meet debt service requirements on local improvement district
debt in the event that assessment collections are insufficient.



                       Outstanding LID Assessment Debt


                                                                                 Estimated      Est. Unmatured
                               Issue     Maturity    Interest        Original  Redemptions            Debt
Name of Issue                   Date       Date       Rates          Amount    as of 12/31/05   as of 12/31/05
LID 1099 Barkley              12/01/94   12/01/16 4.90%-7.50%     $ 4,447,020 $ 3,707,020       $      740,000
LID 1106 Bakerview Road       12/30/96   12/30/18 4.10%-6.00%        4,357,957     3,522,957           835,000
LID 1107/1108 Telegr/Brkly    12/01/97   12/01/14 4.15%-5.65%        1,317,472     1,027,472           290,000
Total LID Assessment Bonds                                        $ 10,122,449 $ 8,257,449      $ 1,865,000



    Estimated Debt Service Requirements On LID Assessment Debt


                                    Bond              Bond           Other Debt
                      Year        Principal          Interest         Total Debt
                      2006                -             120,993     $    120,993
                      2007                -             120,993     $    120,993
                      2008            90,000            118,832     $    208,832
                      2009           195,000            115,622     $    310,622
                      2010         1,280,000            102,497     $ 1,382,497
                     Future          300,000            285,394     $    585,394
                                $ 1,865,000      $      864,331     $ 2,729,331




Page 398                                                          City Of Bellingham, Washington
                                                                            2006 Adopted Budget
                                                                                        Long-Term Debt


Revenue Bonds
Debt service requirements for revenue bonds are paid from specific revenues of a city
enterprise. Customers of these activities pay a fee for services, such as parking or utilities.


                                Outstanding Revenue Debt


                                Issue     Maturity    Interest     Original     Redemptions Unmatured Debt
Name of Issue                    Date      Date        Rates       Amount       as of 12/31/05 as of 12/31/05
Revenue Bonds
1999 Water / Sewer             05/01/99 08/01/11 3.70%-4.60%        8,220,000     1,650,000          6,570,000
2004 Water / Sewer             05/01/04 08/01/24 3.00%-5.00%       10,690,000     1,140,000          9,550,000
Total Revenue Bonds                                              $ 18,910,000   $ 2,790,000     $   16,120,000

Other Obligations
Water - Chuckanut PWTF         07/01/89   07/01/09        1.00% $   593,809     $    468,796    $      125,013
Sewer - Silverbeach PWTF       06/01/91   07/01/11        2.00%     445,500          304,814           140,686
Watermain Replacement PWTF     07/01/02   07/01/22        0.50%   1,938,000          199,183         1,738,817
Denke Property Note            09/27/04   12/15/09        0.00%   3,000,000          500,000         2,500,000
Total Other Obligations                                           2,977,309          972,793         4,504,516

Total Long-Term General Debt                                     $ 21,887,309   $ 3,762,793     $   20,624,516



                Annual Estimated Debt Service Requirements
                        On Revenue Debt to Maturity


                       Bond                 Bond      Other Debt Other Debt
             Year    Principal            Interest      Principal  Interest       Total Debt
             2006 $ 1,860,000           $ 669,589     $ 656,984 $ 12,758         $ 3,199,331
             2007     1,935,000             594,176       656,984    11,465      $ 3,197,625
             2008     2,020,000             526,564       656,984    10,172      $ 3,213,720
             2009     2,095,000             454,084       656,984     8,879      $ 3,214,947
             2010     2,205,000             371,401       625,731     7,586      $ 3,209,718
            Future    6,005,000           1,752,415     1,250,849    40,361      $ 9,048,625
                   $ 16,120,000         $ 4,368,229   $ 4,504,514 $ 91,220       $ 25,083,966




City Of Bellingham, Washington                                                                      Page 399
2006 Adopted Budget
Long-Term Debt




                 This page intentionally left blank.




Page 400                                    City Of Bellingham, Washington
                                                      2006 Adopted Budget
                                                                                 Personnel


                    GENERAL SALARY INFORMATION
                             FOR 2006
The City of Bellingham has nine different pay plans covering the various groups of city
employees.

Some general explanation is required to give a basic understanding of the salary structures.
Brief explanations and pay plans for each employee group appear on the following pages.

Positions are classified by the Human Resources Department by means of job descriptions.
All position descriptions are reviewed by the department head and/or the Mayor. For
positions subject to the authority of the Civil Service Commission, approval by the
commission is required for classifications and position class allocation.

The compensation of the City Council is not covered by any of the salary plans, but is
established by ordinance.

On November 3, 1997 an ordinance was passed authorizing a 3% annual increment in
Council salary. Effective January 1, 2006 that rate is $1,585 per month.




                                  SALARY PLANS
PLAN B -
Employee Group:      Non-Uniformed Employees represented by the American Federation
                     of State, County and Municipal Employees (AFSCME) Local #114

General features of the plan:

A.   Twenty grades (B4 through 16).

B.   For grades 1 through 16, seven steps per grade with 3% increments between steps.
     For grades B4 through B1, three steps per grade with 3% increments between steps.

C. There is a 6% increment between grades.

D. Step increases are given annually on the employee's anniversary date. Steps for part-
   time positions are based upon hours worked, with 2,080 hours generally considered to
   be a work year (1,040 hours for Grades B4 through B1).

In addition to the basic Plan B, the 1988 labor negotiations grandfathered certain
employees in a salary range for their position. The compensation for those ranges
remaining is detailed on a special Plan B schedule. All new employees hired for these
positions are placed in a lower range in the regular Plan B.




City Of Bellingham, Washington                                                     Page 401
2006 Adopted Budget
Personnel


The 2005 salary plan is shown below. At the time the adopted budget was printed, no
agreement had been reached for 2006.


                                       CITY OF BELLINGHAM
                                                2005
                                  Non-Uniformed Salary Structure
                                              PLAN B
                                  (1.65% Increase January 1, 2005)

                              -1-        -2-         -3-        -4-         -5-       -6-         -7-

Salary Grade (B4)             $1,356     $1,395      $1,437
Library Page (Temporary Labor)
                                                                          Part Time Step Increases:

Salary Grade (B3)             $1,437     $1,478      $1,524               Grades B4 through B1--
                                                                            Step increase after 1040 hours

Salary Grade (B2)             $1,524     $1,569      $1,615               Grades 1 through 16--
                                                                            Step increase after 2080 hours

Salary Grade (B1)             $1,615     $1,662      $1,712
Head Lifeguard (Temporary Labor)
                                                                -4-         -5-       -6-         -7-

Salary Grade (1)              $1,712     $1,765      $1,818     $1,871     $1,930    $1,987       $2,047
Library Aide 1                                    Parks Maintenance Aide 2
Parking Systems Security                          Swim Instructor 2 (Temporary Labor)


Salary Grade (2)              $1,818     $1,871      $1,930     $1,987     $2,047    $2,109       $2,172
Custodian (Temporary Labor)                       Security Information Attendant


Salary Grade (3)              $1,930     $1,987      $2,047     $2,109     $2,172    $2,237       $2,301
Library Aide 2                                    Recreation Instructor
Parks Maintenance Aide 3


Salary Grade (4)              $2,047     $2,109      $2,172     $2,237     $2,301    $2,375       $2,446
Custodial Maintenance Worker 1                    Office Assistant 1


Salary Grade (5)              $2,172     $2,237      $2,301     $2,375     $2,446    $2,517       $2,593
Data Entry Technician                             Secretary 1
Micrographic/Imaging Technician




Page 402                                                         City Of Bellingham, Washington
                                                                           2006 Adopted Budget
                                                                                                Personnel



                                       2005 PLAN B (continued)

                               -1-          -2-         -3-         -4-        -5-        -6-        -7-

Salary Grade (6)              $2,301        $2,375      $2,446     $2,517     $2,593      $2,671     $2,752
Accounting Assistant 1                               Office Assistant 2
Custodial Maintenance Worker 2                       Operations Engineering Assistant
Custodian/Parking Meter Collector                    Parking Enforcement Officer
Exhibits Assistant                                   Secretary 2



Salary Grade (7)              $2,446        $2,517      $2,593     $2,671     $2,752      $2,835     $2,919
Accounting Assistant 2                               Parking Meter Mechanic
Library Assistant 1                                  Park Worker
Office Assistant 3                                   Secretary 3


Salary Grade (8)              $2,593        $2,671      $2,752     $2,835     $2,919      $3,006     $3,096
Accounting Assistant 3                               Police Support Services Specialist
Cataloging Technician                                Purchasing and Materials Assistant
Library Assistant 2                                  Service Representative 1
Network Technician 1                                 Utility Worker



Salary Grade (9)              $2,752        $2,835      $2,919     $3,006     $3,096      $3,187     $3,282
Accounting Technician                                Data Services Assistant
Administrative Secretary                             Park Technician/Facilities
Aquatics Facility Technician                         Photo Archive Technician
Associate Engineering Technician                     Water Distribution Specialist 2
City Tax Representative


Salary Grade (10)             $2,919        $3,006      $3,096     $3,187     $3,282      $3,383     $3,486
Assist. Education/Public Programs Coord.             Park Technician/Structures
Education Programs/Activities Coordinator            Park Technician/Urban Forestry
Greenway Volunteer Coordinator                       Park Technician/Water, Electrical, Mechanical
Library Specialist                                   Project Records Coordinator
Maintenance Systems Technician                       Service Representative 2
Maintenance Worker 3                                 Skilled Worker 1
Network Technician 2                                 Warehouse/Parts Room Worker
Park Technician/Cemetery                             Water Distribution Specialist 3
Park Technician/Grounds




City Of Bellingham, Washington                                                                     Page 403
2006 Adopted Budget
Personnel



                                         PLAN B (continued)
                                               2005

                                -1-      -2-         -3-        -4-        -5-       -6-      -7-
Salary Grade (11)               $3,096   $3,187      $3,282     $3,383     $3,486    $3,586   $3,695
Buyer                                             Park Project Specialist
Contract Accounting Specialist                    Permit Technician
Department Computing Specialist 1                 Records Management Coordinator
Engineering Technician                            Skilled Worker 2
Litter Compliance Officer                         Water Distribution Specialist 4



Salary Grade (12)               $3,282   $3,383      $3,486     $3,586     $3,695    $3,806   $3,919
Department Computing Specialist 2                 Park Specialist
Electronics Technician                            Permit Program Systems Administrator
Fleet Maintenance Mechanic 3                      Plant Operator in Training
Housing Rehabilitation Specialist                 Senior Surface Water Technician
Lab Technician                                    Senior Surveyor
Park Arborist


Salary Grade (13)               $3,486   $3,586      $3,695     $3,806     $3,919    $4,039   $4,159
Building Inspector 1                              Senior Permits Reviewer
Fleet Maintenance Mechanic 4                      Warrant Officer
Senior Construction Inspector                     Water Distribution Specialist 5


Salary Grade (14)               $3,695   $3,806      $3,919     $4,039     $4,159    $4,286   $4,411
Building Inspector 2 (5% market step $4,632)      Lead Buyer
Electrical Inspector 1                            Maintenance Technician
Engineering Assistant                             Property Acquisition Specialist
Fleet Maintenance Mechanic 5                      Safety Specialist
Incinerator Operator 1                            Technical Support/Training Specialist


Salary Grade (15)               $3,919   $4,039      $4,159     $4,286     $4,411    $4,546   $4,683
Computer Services Supervisor                      Plant Operator 1
Electrical Inspector 2                            Signal Systems Specialist
Electronics Specialist                            Technical Support/Applications Specialist
Incinerator Operator 2


Salary Grade (16)               $4,159   $4,286      $4,411     $4,546     $4,683    $4,821   $4,967
Maintenance Specialist                            Plant Operator 2
Plans Examiner                                    Senior Building Inspector




Page 404                                                          City Of Bellingham, Washington
                                                                            2006 Adopted Budget
                                                                                   Personnel



                                              2005
                             Non-Uniformed Compensation Structure
                                   "Grandfathered" Employees
                                         Special Ranges
                                (1.65% Increase January 1, 2005)

                              -1-      -2-      -3-      -4-        -5-      -6-        -7-

Salary Grade (6-3)            $2,194   $2,262   $2,331   $2,398     $2,468   $2,543    $2,622
Custodial Maintenance Worker 1


Salary Grade (7-3)            $2,331   $2,398   $2,468   $2,543     $2,622   $2,700    $2,782
Micrographic/Imaging Technician


Salary Grade (7-1)            $2,446   $2,517   $2,593   $2,671     $2,752   $2,835    $2,919
Custodian/Parking Meter Collector
Office Assistant 2


Salary Grade (9-3)            $2,622   $2,700   $2,782   $2,863     $2,948   $3,036    $3,130
Parking Meter Mechanic




City Of Bellingham, Washington                                                        Page 405
2006 Adopted Budget
Personnel


PLAN C –
Employee Group:      Uniformed Fire Personnel represented by the International
                     Association of Fire Fighters (IAFF) Local #106

Deferred Compensation Benefit: The City will match employee voluntary contributions to a
deferred compensation plan up to 2.5% of the employee's January 1 salary shown in this
plan.

General features of the plan:

A. Two grades (29 and 32).

B. Computation of salary steps and premium pay:

   1. Grade 29, five steps with 6.0% between steps.

       a) In addition to the basic step plan, Driver/Engineers receive a fixed monthly
          premium equal to 1.9% of step 5 in Grade 29.

       b) In addition to the basic step plan, Paramedics receive a fixed monthly premium
          equal to 12.0% of step 5 in Grade 29.

       c) In addition to the basic step plan, Engine Medics receive a fixed monthly
          premium equal to 10% of step 5 in Grade 29.

       d) Firefighters acting as Captains receive 6% of salary as premium pay.

       e) Rescue Tech or Boat Specialty premium is 2.0% of Step 5 in Grade 29.

   2. Grade 32, five steps with 3% between steps.

       a) In addition to the basic step plan, Senior Inspectors receive 6% of salary as
          premium pay.

       b) Captains acting as Battalion Chiefs receive 6% of salary as premium pay.

   3. Firefighters and Captains assigned to administrative support receive an additional
      4.5% of salary as premium pay.

   4. Extra duty pay also is provided for periodic driving assignments, student evaluations
      and service as Public Information Officer.

C. Step increases are given annually on the employee's anniversary date for grade 29, and
   semi-annually based on the employee's anniversary date for grade 32.

D. The plan includes additional pay for service longevity.




Page 406                                                     City Of Bellingham, Washington
                                                                       2006 Adopted Budget
                                                                                 Personnel



The settlement for 2006 is based on the increase in CPI from August 2004 to August 2005,
with a 2.0% minimum and 4.0% maximum. This resulted in a 2.25% increase effective
January 1, 2006 with an additional .9% increase effective July 1, 2006.



                               CITY OF BELLINGHAM
                                       2006
                          Uniformed Fire Salary Structure
                                     PLAN C
                              2.25% Increase January 1, 2006
                                 .90% Increase July 1, 2006

January 1, 2006:               Step 1    Step 2     Step 3     Step 4   Step 5
Salary Grade 29                $4,105    $4,364     $4,628     $4,912   $5,207
Firefighter

Salary Grade 32                $5,532    $5,698     $5,871     $6,044   $6,228
Captain
Inspector


July 1, 2006:                  Step 1    Step 2     Step 3     Step 4   Step 5
Salary Grade 29                $4,142    $4,403     $4,670     $4,956   $5,254
Firefighter

Salary Grade 32                $5,582    $5,749     $5,924     $6,098   $6,284
Captain
Inspector




City Of Bellingham, Washington                                                    Page 407
2006 Adopted Budget
Personnel


                                     2006 PLAN C (continued)

Service Longevity

For employees hired before January 1, 1969:
      6% of salary plus $40 per month

For employees hired before January 1, 1972 and after January 1, 1969:
      6% of salary per month

For employees hired after January 1, 1972 (per month):
                                 5 Years 10 Years 15 Years         20 Years    25 Years
  Percent of Step 5 Firefighter    1.0%       1.9%      2.8%         4.7%        5.2%
        January 1, 2006           $52.07     $98.93    $145.80     $244.73     $270.76
        July 1, 2006              $52.54     $99.83    $147.11     $246.94     $273.21

Paramedic Longevity

In addition to service longevity, for eligible employees (per month):
                                    3 Years     6 Years   9 Years 12 Years     15 Years   18 Years
   Percent of Step 5 Firefighter      0.9%        1.4%     2.2%       2.6%       3.0%       3.5%
          January 1, 2006            $46.86      $72.90   $114.55   $135.38    $156.21    $182.25
          July 1, 2006               $47.29      $73.56   $115.59   $136.60    $157.62    $183.89

Monthly Premium Pays

Driver/Engineer Premium                          1.9% of Step 5 Firefighter Salary
   (N/A to Paramedics on a Medic Unit)
         January 1, 2006                                  $98.93
         July 1, 2006                                     $99.83

Paramedic Premium                              12.0% of Step 5 Firefighter Salary
       January 1, 2006                                  $624.84
       July 1, 2006                                     $630.48

Engine Medic Premium                           10.0% of Step 5 Firefighter Salary
        January 1, 2006                                 $520.70
        July 1, 2006                                    $525.40

Rescue Tech or Boat Specialty Pay                2.0% of Step 5 Firefighter Salary
        January 1, 2006                                  $104.14
        July 1, 2006                                     $105.08

Senior Inspector Premium                               6.0% of Salary

Administrative Support Premium for
 Firefighters and Captains                             4.5% of Salary

Acting Pay
 Captains as Battalion Chiefs                          6.0% of Salary
 Firefighters as Captains                              6.0% of Salary


Page 408                                                       City Of Bellingham, Washington
                                                                         2006 Adopted Budget
                                                                                       Personnel


                                  2006 PLAN C (continued)

Extra Duty Pays

Driver/Engineer                   0.109% of Step 5 Firefighter Salary per 12-hour shift assignment
         January 1, 2006                                   $5.68
         July 1, 2006                                      $5.73

Public Information Officer          4.3% of Step 5 Firefighter Salary per month
          January 1, 2006                               $223.90
          July 1, 2006                                  $225.92

Student Evaluations                       $22 per evaluation for training City of Bellingham
(applicable to Paramedics only)              Firefighters (for each 24 hour shift e