Finance And Personnel Committee Agenda, Aug. 4

CITY OF BAINBRIDGE ISLAND SPECIAL CITY COUNCIL MEETING FINANCE & PERSONNEL COMMITTEE Location: Council Chamber 280 Madison Avenue N.

Tuesday August 4, 2009 3:00 p.m. AGENDA Public Comment Review of 7-14-09 Meeting Notes

10 min (Accept) 5 min (Approve)*

Winslow Way LID Resolution Federal Grant for Winslow Way

10 min (Discuss)*

Monthly Financial Report for June 2009 Interfund Loan Update July Cash Flow Analysis

30 min (Discuss)*

Mid-Year Report Q & A

30 min (Discuss)

Cost Allocation Update

10 min (Discuss)

Utility Management by a Non-Profit (comparison study)

10 min (Discuss)

Future Agenda Items

5 min (Discuss)

Notes: * Document posted on City website in advance of meeting

The public is encouraged to attend and speak to the committee on general issues and during the meeting on individual agenda items. If you wish to be notified of meetings of this Committee please visit the City Website www.ci.bainbridge-isl.wa.us and enter your email address in the “Sign Up For Listserv Updates” cell.

1

CITY OF BAINBRIDGE ISLAND FINANCE & PERSONNEL COMMITTEE Tuesday – July 14, 2009 3:00 p.m. Location: Council Chamber - City Hall MEETING NOTES Attending: Committee:

Councilmembers Barry Peters (committee chair), Councilmember Stoknes and Councilmember Bill Knobloch

Elected:

Councilmember Brackett

Administration:

Finance Director Konkel Finance & Administrative Services Department Secretary Kelly Jahraus monitored the recording of the meeting and prepared the notes.

Call to Order 3:00:25 PM Committee Chair Barry Peters called the meeting to order at 3:00 p.m. Public Comment 3:02:00 PM Dick Daniel inquired if there was further discussion amongst council on the content of the FPC notes. Robert Dashiell asking Finance Director Konkel what was the original source of the money for the HRB contract. Curt Winston making a comment about Winslow Way project; saying it is the height of irresponsibility to use utility funds to “gussy up” Winslow Way. Councilmember Brackett formally requesting balance sheet of the monthly financials and asking if the city has tapped into the interfund loan yet. Councilmember Brackett also introduced into the record an email from Daniel Mallove, a member of the Utility Advisory Committee regarding the UAC and funding mechanisms for Winslow Way. Sally Adams making a quick comment about the procedure of appointing chairs for committees. Review of 6-30-09 Meeting Notes 3:12:28 PM Document(s) presented: FPC Meeting Notes for June 30, 2009 Motion: Moved that notes of June 30, 2009 Finance and Personnel Committee meeting be approved as presented. By: Stoknes. Second: Knobloch Approved: Yes: 3

2 Winslow Way Construction Finance Plan 3:14:05 PM Document(s) presented: Winslow Way Finance Plan Chris Wierzbicki, deputy director of Planning and Community Development and staff lead for the reconstruction project, addressed the committee and presented the current finance plan. He stated the outside cost for the project and budgeted cost is $12 million; the team is comfortable enough at the 60% design level to lower the budget estimate to $11.5 million, which will be reflected on the city council agenda bill. Mr. Wierzbicki reviewed the documents and approach with the committee. Action item: Councilmember Stoknes requested the following text be added to the “next activity” portion of the schedule: City staff will process the information available to date to the Utility Advisory Committee for their review and recommendation to bring them up to speed and incorporate them into the Winslow Way process as soon as possible. Councilmember Bill Knobloch expressed concern over the funding of the project and sited an RCW pertaining to the legalities of project funding; City Attorney Paul McMurray cautioned Councilmember Knobloch against providing a legal opinion especially when there is current litigation pending. Councilmember Peters has asked the city attorney to review the matter and advise the committee accordingly. Motion: That the finance and personnel committee refer this agenda item to the full city council meeting of July 22 with the recommendation to approve the Winslow Way Reconstruction 60% design plans dated June 12, 2009 and recognize a reduction of the project program budget from $12 million to $11.5 million. By: Stoknes. Second: Peters Carried: Yea: 2 Nay: 1 (Knobloch) Spending Approval Authority for City Manager 3:43:25 PM Councilmember Peters introduced the agenda item by stating that historically the council has authorized the former mayor to approve contracts up to $25,000 and then in 2007 the limit was raised twice, eventually to $100,000 and finally lowered to $10,000. The change in the government requires the city authorize explicit authority to the city manager. City Attorney Paul McMurray stated he does not have a recommendation of what level of authority council provide to the city manager; that is the council’s decision. He does ask though that the ordinance is changed to reflect the city manager’s signature so there is clear contracting authority for professional service agreements approved in the budget. Mr. McMurray also suggested and requested that the committee and council at some point consider authorizing either through resolution or through ordinance, the city manager to have a similar type of agreement for settlement authority. Motion: move that the Finance and Personnel committee make a recommendation to the full city council to direct the city attorney to change the applicable code from “mayor” to “city manager” in order to conform to the stature of the form of government. By: Knobloch. There was no second to the motion. Motion: request that the city attorney revise and bring to the council a revision of ordinance 2008-02 that brings the spending authority limit to $30,000 for the city manager.

3 By: Stoknes. Second: Peters Carried: Yea: 3-0 City Manager: New Employment Agreement (follow up) 4:04:31 PM Performance Appraisal Process & Goal Setting Document(s) presented: Prothman Proposal Waldron Proposal Under the city manager’s current employment agreement there is a requirement for a performance review and appraisal facilitated by a third party. Motion: I move that the City Council approve a professional services contract with Prothman for the first two phases of a proposal to facilitate the city manager’s performance review, evaluation criteria for the remainder of 2009 and for development of a new employment contract. Phases I and II for amounts of $3,000 and $6,500 respectively and a City Council option for Phase III by December 31, 2009 for $4,250, a total of $13,750 and authorize the Mayor to execute the contract. By: Knobloch. Second: Peters Carried: Yea: 3-0 HRB Contract (Ferncliff Project) 4:12:23 PM Document(s) presented: HRB Contract Kathy Cook, Director of Planning and Community Development briefed the committee on the history of the agenda item. In late 2008, the Housing Trust Fund executive committee conducted a call for proposals for affordable housing projects to be funding out of the HTF. The Housing Resources Board submission was unanimously recommended to be awarded the $100,000 in support of the project. That recommendation was also supported by the city council. Motion: that the finance and personnel committee approve the HRB contract and recommend approval to the city council at the July 22, 2009 meeting. By: Knobloch. Second: Stoknes Carried: Yea: 3-0 DOE Shoreline Update Grant 4:17:43 PM Document(s) presented: DOE Shoreline Update Grant This grant will fund not only facilitate the citizen process of engaging in the early work of the SMP update but also funds technical work and the local adoption process. Motion: move that the finance and personnel committee recommend that city council accept the $200,000 grant from the Department of Ecology for the city’s Shoreline Master Plan Update. By: Stoknes. Second: Knobloch Carried: Yea: 3-0 Utility Fee Studies Change Order 4:21:23 PM Document(s) presented: Utility Fee Studies Change Order In the 2008 budget, it was anticipated that Utility Fee updates would be necessary to bring our rates in line with expected activities and costs. FCS GROUP made a proposal to perform these studies for the City’s Water, Wastewater and Storm and Surface Water Management (SSWM) Utilities and was awarded the contract on July 16, 2008 with a scope of work and a minimum of public meetings. Due to the efforts

4 required in the original analysis to update financial, budget, and capital planning data, as well as requests for additional services including review by the Utility Advisory Committee, a contract amendment to increase the budget by $30,830 is required. Councilmember Knobloch commented that this committee to send the change order to the UAC for further review and an advisory opinion. Councilmember Stoknes asked that staff bring this issue to the UAC on where the city is on the rate study. Motion: I move that the City Council approve a budget amendment in the amount of $30,830 ($15,399 from Water Fund, $8,044 from Wastewater Fund and $7,387 from the Storm and Surface Water Management Fund) for the FCS Group of Seattle regarding the Water, Wastewater and Storm and Surface Water Rate Studies and authorize the City Manager to execute the contract amendment for a total contract amount of $111,135. By: Stoknes. Second: Peters Carried: Yea: 2 Nay: 1 (Knobloch) CREBs: Clean Renewable Energy Bonds: Potential Funding Source for City Hall Solar Panels 4:33:17 PM Document(s) presented: Application Councilmember Peters asked the committee to authorize the proposed application for a CREB to use as a placeholder for potential bond funding. Through the utilization of a New Clean Renewable Energy Bond, and Washington State’s Community Solar Project incentives, a large-scale photovoltaic (PV) system will be installed on the roof of City Hall. Motion: I move that the City Council request the City Administration apply for the allocation of New Clean Renewable Energy Bonds to be used to install a large-scale photovoltaic system on the roof of the Bainbridge Island City Hall. By: Knobloch Second: Peters Carried: Yea: 3-0 Parks Board – SSWM Fees on Properties to be Transferred 4:36:39 PM Guests Ken DeWitt and Kirk Robinson of the BIMPRD joined the committee at the dais for the agenda item. Councilmember Peters introduced the agenda item by stating whether or not it would be an effective option for city-owned properties to be held by the BIMPRD given that the parks has a core mission of operating and maintaining open space and recreational lands and to facilitate a request to city council for consideration of further reduction in swim fees for park reclamation systems. The gentlemen from BIMPRD stated an idea for a next step could include developing a lease with the ability to do maintain the properties but have the city relieved of management expenses while issue is worked out. The meeting was adjourned at 5:02:14 PM

5 CITY OF BAINBRIDGE ISLAND CITY COUNCIL AGENDA BILL PROCESS INFORMATION Subject: Subject: Winslow Way Reconstruction Project Resolution of Intention to Form Local Improvement District Agenda Item: Resolution Proposed By: Christopher Wierzbicki, PE Referral(s): BUDGET INFORMATION Department: PCD/PW Expenditure Req: N/A

Fund: N/A Budgeted?

Yes

No

STANDING COMMITTEE INFORMATION Referring Committee: FPC Recommendation: Date of Referral: August 4th Vote __ – Yea __ – Ney

Date: August 26, 2009 Bill No.:

Munis Contract # N/A Budget Amend. Req? Yes

Minority Report

Yes

No

No

DESCRIPTION/SUMMARY Action Item: Staff is requesting that the City Council approve a resolution of intention to form a local improvement district for the Winslow Way Reconstruction Project. History: The property owners fronting Winslow Way between Ericksen and Madison Avenue have agreed to support an LID for the Winslow Way Reconstruction Project. The funds allocated to the City for completion of the project will be used to at the City’s discretion to implement the project as developed by the Public Works Department, and as described in Exhibit A of the LID agreement. Schedule/Next Activities: The City Council will receive copies of this resolution and copies of the signed LID documentation along with the packet materials for the August 26 Council Meeting. The formation hearing for the LID is identified in the resolution as taking place at the September 23 Council Meeting. Budget: The 2009-10 Winslow Way Reconstruction Project Budget includes and requires the funds that will be appropriated through the LID. Location: Winslow Way between State Route 305 and Grow Avenue. RECOMMENDED ACTION The following is the requested motion from the FPC to the full Council: Motion: I move that the Finance and Personnel Committee recommend to the City Council the approval of Resolution 09-19, thereby declaring its intention to form a local improvement district for the Winslow Way Reconstruction Project.

Z:\Finance Personnel Files\2009\8-4-09\agenda_bill_ww_lid.doc

6 CITY OF BAINBRIDGE ISLAND WINSLOW WAY IMPROVEMENT PROJECT AGREEMENT AND PETITION 1.

AGREEMENT AND PETITION 1.1 This Winslow Way Improvement Project Agreement and Petition (“Agreement”) is between the City of Bainbridge Island, a Washington municipal corporation (“City”), and the Owners of certain property identified in Exhibit A (Appendix 1 – 21) to this Agreement (collectively, “Owners”). The City and Owners agree as set forth in this Agreement. 1.2 This Agreement also constitutes the petition of Owners for the formation of a local improvement district for the improvement of Winslow Way, as further described herein.

2.

PROPERTY OWNERS’ PETITION 2.1 Owners’ Property. Owners are the owners of property described specifically in Appendix 1 – 21 (the “Property”). 2.2 Improvements. The City is considering the improvement of Winslow Way and utility infrastructure serving the Property (the “Improvements”), and described as follows: The Winslow Way Reconstruction Project is to provide a complete replacement of below and above-ground utility and transportation infrastructure between State Route 305 and Grow Avenue. Elements of the project include: replacement of water, sewer and stormwater facilities; street improvements, including paving, curbs, gutters, sidewalks, street lighting, street trees and other landscaping and enhancements; retention of angled parking and addition of bicycle facilities; and, undergrounding of electrical power, cable and telephone, and appurtenances, between Ericksen Avenue and Madison Avenue. 2.3 LID Area. The Property is within an area that may be included within a local improvement district or districts (“LID”) that may be formed for the financing and construction of the Improvements. Part of the Improvements benefit specially the Property within the LID area. The legal description of the properties included in Exhibit A, constitutes the boundaries of the LID and which boundary is shown by the aerial photograph of the LID area and attached as Exhibit B. 2.4 LID Petition. Owners seek and hereby petition for the installation of the Improvements, and the formation of an LID, construction of the Improvements and for the financing in part through an LID. The City is prepared to consider the formation of an LID for the purposes of financing and construction of the Improvements. 2.5 Alternative Methods. The City may form an LID for the Improvements pursuant to the petition method (RCW 35.43.120 through RCW 35.43.130) or by the resolution method (RCW 35.43.140 through RCW 35.43.180).

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7 3.

PROPERTY SPECIALLY BENEFITED

The Property will receive special benefit in at least the amount set forth in attached Exhibit C (“Property Assessment”) as a result of the construction of the Improvements. Owners agree that this Property Assessment is not an estimate of special benefit. A complete schedule of the Property and Property Assessments within the LID is set forth in Exhibit C. 4.

CREATION OF LID 4.1 Subject to compliance with federal and state law, the City shall entertain the creation of an LID for the Improvements. Should the City elect to proceed with such an LID, the City shall order and carry out the construction of the Improvements as expeditiously as practicable. The City shall also exert its best efforts to finance the cost of the Improvements, in part, with proceeds from special benefit assessments levied against the Property within the LID, and identified in Exhibit C. It is understood by the parties to this Agreement that nothing contained herein shall be construed to bind the City to the creation of an LID, or to the levying of assessments or other action under Title 35 RCW. The City in its sole discretion may order the construction of less than all of the Improvements, and may create one or more local improvement districts within the boundaries set forth in attached Exhibit A to carry out as many of the Improvements as the City orders to be constructed. 4.2 As to any LID formed under any provision of this Agreement, Owners retain the right to protest the specific amount of assessment against Property. Actual assessments may vary from assessment estimates so long as they do not exceed a figure equal to the increased true and fair value the Improvements add to the Property. Provided, City shall not assess against Property for the LID an amount greater than the Property Assessment set forth in Exhibit C.

5.

GENERAL 5.1 Waiver. Any waiver of a right to enforce a provision of this Agreement by either the City of Owners shall not constitute a waiver of any similar or other subsequent right to enforce the same or any other provision of this Agreement. 5.2 Notice. Any notice or other communication required or permitted under this Agreement to be given shall be in writing and sent by regular mail to the parties, as identified below. Any party may give to the other party notice of a change of address in the manner provided in this section. City:

City of Bainbridge Island Public Works Department 280 Madison Ave. N. Bainbridge Island, WA 98110-1812

Owners

SEE ATTACHED APPENDIX 1 – 21

5.3 Choice of Law/Venue. This Agreement shall be governed and construed in accordance with the laws of the State of Washington, and venue in connection with any legal

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8 proceeding affecting this Agreement shall be laid in the Superior Court of the State of Washington in Kitsap County. 5.4 Binding Successors. This Agreement shall be binding on the successors, assigns, heirs, administrators and executors of the parties hereto. To that end, this Agreement may be recorded by the City at its discretion. 5.5 Termination. If the LID is not formed within eighteen (18) months of the Effective Date, this Agreement shall terminate and be of no further force and effect. 5.6 Entire Agreement and Severability. This Agreement is the entire understanding between the parties, and no changes, amendments or alterations shall be effected unless agreed to in writing and signed by both parties. If any provision of this Agreement is finally determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of the provisions of this Agreement shall remain in full force and effect, provided, however, in the event the invalid or unenforceable provision is a material part of the consideration for this Agreement, this Agreement shall thereby be rendered voidable at the option of either party. The option to void this Agreement shall be exercised by sending written notice to the other party no later than ten (10) business days after the court’s determination becomes final or the option shall thereafter be deemed to be waived. 6.

EXECUTION AND EFFECTIVE DATE 6.1 RCW 35A.01.040 requires the following warning: every person who signs this Agreement, as set forth in Appendix 1 – 21, with any other than his or her true name, or who knowingly signs more than one of these Agreements, or signs a petition when he or she is otherwise not qualified to sign, or who makes herein any false statement, shall be guilty of a misdemeanor. 6.2 This Agreement shall be final and binding following execution by the Owners and by the City. The Effective Date shall be the date executed by the authorized representative of the City, below.

Dated this ____ day of _________________________, 2009.

CITY OF BAINBRIDGE ISLAND

By:

___________________________ Mark Dombroski City Manager

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9

STATE OF WASHINGTON ss. COUNTY OF _________________________ I certify that I know or have satisfactory evidence that Mark Dombroski is the person who appeared before me, and said person acknowledged that said person signed this instrument, on oath stated that said person was authorized to execute the instrument and acknowledged it as the City Manager of the City of Bainbridge Island, a Washington municipal corporation, to be the free and voluntary act of such corporation for the uses and purposes mentioned in the instrument. Dated this ____ day of _________________________, 2009.

(Signature of Notary)

(Legibly Print or Stamp Name of Notary)

Notary public in and for the State of Washington, residing at My appointment expires

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10 RESOLUTION NO. 09-19

A RESOLUTION of the City Council of the City of Bainbridge Island, Washington, relating to the Winslow Way Reconstruction Project; declaring its intention to order the construction of utility and street improvements and to create a local improvement district to assess the cost and expense of carrying out those improvements against the properties specially benefited thereby; and, notifying all persons who desire to object to the improvements to appear and present their objections at a hearing before the City Council to be held on September 23, 2009.

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, as follows: Section 1. It is the intention of the City Council of the City of Bainbridge Island, Washington, to order the improvement of the properties within the area described in Exhibit A, attached and incorporated by this reference, by the construction of the Winslow Way Reconstruction Project. The Winslow Way Reconstruction Project is to provide a complete replacement of below and above-ground utility and transportation infrastructure between State Route 305 and Grow Avenue. Elements of the project include: replacement of water, sewer and stormwater facilities; street improvements, including paving, curbs, gutters, sidewalks, street lighting, street trees and other landscaping; retention of angled parking and addition of bicycle facilities; and, undergrounding of electrical power, cable and telephone, and appurtenances, between Ericksen Avenue and Madison Avenue all as more fully described in Exhibit B, attached and incorporated by this reference (the “Improvements”.) All of the Improvements shall be in accordance with the plans and specifications prepared for the City by the SVR Design Company and Puget Sound Energy and may be modified by the City as long as modifications do not affect the purpose of the Improvements. Section 2. The total estimated cost and expense of the Improvements is declared to be an amount not to exceed $1,00,000.01, only $1,000,000.01 of that cost and expense shall be borne by and assessed against the property specially benefited by the Improvements. Such property is to be included in a local improvement district to be established; the local improvement district embracing as nearly as practicable all the property specially benefited by the Improvements. The balance of the cost and expense of the Improvements shall be paid by the City. None of the amount to be assessed against the property within the local improvement district is to be paid by the City Actual assessments may vary from estimated assessments as long as they do not exceed a figure equal to the increased true and fair value the improvements add to the property. Section 3. All persons who may desire to object to the Improvements are notified to appear and present those objections at a hearing before the City Council to be held in the Bainbridge Island City Hall Council Chambers at 280 Madison Avenue North Bainbridge Island, Washington, at FORM 9 (Rev. 12/30/93) RESOLUTION OF INTENT—LID (WITHOUT PETITION) F:\DMS\RPK\0049229.08 07/27/09 -2-

11 7:30 p.m. on September 23, 2009 which time and place are fixed for hearing all matters relating to the Improvements and all objections thereto and for determining the method of payment for the Improvements. All persons who may desire to object thereto should appear and present their objections at that hearing. Any person who may desire to file a written protest with the City Council may do so within 30 days after the date of passage of the ordinance ordering the Improvements in the event the local improvement district is formed. The written protest should be signed by the property owner and should include the legal description of the property for which the protest is filed and that protest should be delivered to the City Clerk.

Section 4. The city clerk is authorized and directed to give notice of the adoption of this resolution and of the date, time, and place fixed for the public hearing to each owner or reputed owner of any lot, tract, parcel of land, or other property within the proposed local improvement district by mailing such notice at least fifteen (15) days before the date fixed for public hearing to the owner or reputed owner of the property as shown on the rolls of the Kitsap County Assessor at the address shown thereon, as required by law. This resolution also shall be published in its entirety in at least two consecutive issues of the official newspaper of the City, the date of the first publication to be at least fifteen (15) days prior to the date fixed for the public hearing. Section 5. The City’s Public Works Department will submit to the City Council on or prior to September 8, 2009 all data and information required by law to be submitted.

Section 6.

If any section, subsection, paragraph, sentence, clause or phrase of this

resolution is declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portions of this resolution.

Section 7. Any act consistent with the authority and prior to the effective date of this resolution is hereby ratified and affirmed.

Section 8. This resolution shall take effect and be in force immediately upon its passage. PASSED by the City Council this 26th day of August, 2009. APPROVED by the Mayor this _____ day of #________________, 19___#.

FORM 9 (Rev. 12/30/93) RESOLUTION OF INTENT—LID (WITHOUT PETITION) F:\DMS\RPK\0049229.08 07/27/09 -2-

12

Mayor

ATTEST/AUTHENTICATE:

__________________________________ City Clerk APPROVED AS TO FORM:

__________________________________ City Attorney

FORM 9 (Rev. 12/30/93) RESOLUTION OF INTENT—LID (WITHOUT PETITION) F:\DMS\RPK\0049229.08 07/27/09 -2-

13 I, #_________________________#, City Clerk of the City of Bainbridge Island, Washington, certify that the attached copy of Resolution No. #______# is a true and correct copy of the original resolution passed on the ______ day of #______________, 20___#; as such resolution appears on the Minute Book of the City. DATED this ______ day of #________________, 20___#.

City Clerk

FORM 9 (Rev. 12/30/93) RESOLUTION OF INTENT—LID (WITHOUT PETITION) F:\DMS\RPK\0049229.08 07/27/09 -2-

14 Winslow Way Reconstruction Project Agreement and Petition – Legal Descriptions EXHIBIT A – Appendix 1 LID ID

Acct #

County Tax Roll Name

County Delivery Address

County City, State, Zip

Site Address

City Records Name

AREA (Sq.Ft.)

LID Assessment

1A

262502-3-048-2003

Virginia Mason Winslow

380 Winslow Way E

Bainbridge Island, WA 98111

143 Ericksen Ave NE

Haggar Scribner Properties

10,454

$

23,599.06

1B 1C

262502-3-049-2002 262502-3-050-2008

Virginia Mason Winslow Virginia Mason Winslow

380 Winslow Way E 380 Winslow Way E

Bainbridge Island, WA 98111 Bainbridge Island, WA 98111

141 Ericksen Ave NE 380 Winslow Way E

Haggar Scribner Properties Haggar Scribner Properties

3,920 10,454

$ $

8,239.67 63,497.46

Legal Description: AUDITOR’S FILE NO. 262502-3-160-2005 Parcel I: That portion of the Northwest quarter of the Southwest quarter, Section 26, Township 25 North, Range 2 East, W.M.., in Kitsap County, Washington, described as follows: Beginning at a point 959 feet East and 100 feet North of the Southwest corner of said subdivision; Thence West 150 feet; Thence North 5 feet; Thence West 50 feet; Thence North 48 feet; Thence East 200 feet; Thence South 53 feet to the point of beginning. Parcel II: That portion of the Northwest quarter of the Southwest quarter in Section 26, Township 25 North, Range 2 East, W.M., more particularly described as follows: Beginning at a point 959 feet East of the Southwest corner of said subdivision; Thence North 100 feet; Thence West 55 feet; Thence South 100 feet; Thence East to point of beginning; EXCEPT the South 28 feet thereof for Winslow Way East, AND EXCEPT that portion thereof, lying within Erickson Avenue NE running along the East boundary. Parcel III: That portion of the North half of the Southwest quarter, Section 26, Township 25 North, Range 2 East, W.M., in Kitsap County, Washington, described as follows: Beginning at a point 904 feet East and 28 feet North of the Southwest corner of said North half of the Southwest quarter; Thence North 72 feet; Thence West 95 feet; Thence North 5 feet; Thence West 50 feet; Thence South 77 feet; Thence East 145 feet to the point of beginning. Approval: _______________________________________________ Signature _______________________________________________ Printed Signature _______________________________________________ Date

STATE OF WASHINGTON COUNTY OF:

ss.

I certify that I know or have satisfactory evidence that _____________________________is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument and acknowledged it as the ____________________________ of the _______________________________, a Washington____________________________, to be the free and voluntary act of such corporation for the uses and purposes mentioned in the instrument. Dated this ______ day of ________________________, 2009. ________________________________________________________ (Signature of Notary) ________________________________________________________ (Legibly Print or Stamp Name of Notary)

Notary public in and for the State of Washington, residing at: ________________________________________________ My Appointment expires: ____________________________

15 Winslow Way Reconstruction Project Agreement and Petition – Legal Descriptions EXHIBIT A – Appendix 2 LID ID 2

Acct # 262502-3-054-2004

County Tax Roll Name Haggar Scribner Properties, LLC

County Delivery Address

County City, State, Zip

3091 Point White Dr. NE

Bainbridge Island, WA 98110

Site Address 310 Winslow Way E

City Records Name

AREA (Sq.Ft.)

Haggar Scribner Properties

12,197

LID Assessme nt $ 54,597.82

Legal Description: AUDITOR’S FILE NO. 262502-3-054-2004 Parcel I: That portion of the Northwest quarter of the Southwest quarter, Section 26, Township 25 North, Range 2 East, W.M., described as follows: Beginning at a point 673 feet and 3 inches East and 20 feet North of the Southwest corner of the Northwest quarter of the Southwest quarter; Thence East 45 feet and 3 inches; Thence North 150 feet; Thence West 45 feet and 3 inches; Thence South 150 feet to the True Point of Beginning; EXCEPT the South 8 feet conveyed to the Town of Winslow by deed recorded under Auditor's File No. 672154; Parcel II: That portion of the Northwest quarter of the Southwest quarter, Section 26, Township 25 North, Range 2 East, W.M., described as follows: Beginning at the Southwest corner of the North half of the Southwest quarter of said Section 26; Thence North 20 feet; Thence East 718.5 feet to the True Point of Beginning; Thence North 200 feet; Thence East 29 feet; Thence South 200 feet; Thence West 29 feet to the True Point of Beginning; EXCEPT the South 8 feet conveyed to the Town of Winslow by deed recorded under Auditor's File No. 672154; Parcel III: An easement for ingress, egress and utilities over and across the following strip of land, as more fully set out in deed recorded under Auditor's File No. 642238; Beginning at the Southeast corner of the above described Parcels I and II; Thence North 200 feet; Thence East 11.5 feet; Thence South 200 feet; Thence West 11.5 feet to the True Point of Beginning. All parcels situate in Kitsap County, Washington. Approval: _______________________________________________ Signature _______________________________________________ Printed Signature _______________________________________________ Date

STATE OF WASHINGTON COUNTY OF:

ss.

I certify that I know or have satisfactory evidence that _______________________________ is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument and acknowledged it as the ____________________________ of the _______________________________, a Washington _____________________________, to be the free and voluntary act of such corporation for the uses and purposes mentioned in the instrument. Dated this ______ day of ________________________, 2009. ________________________________________________________ (Signature of Notary) ________________________________________________________ (Legibly Print or Stamp Name of Notary) Notary public in and for the State of Washington, residing at: ________________________________________________ My Appointment expires: ____________________________

16 Winslow Way Reconstruction Project Agreement and Petition – Legal Descriptions EXHIBIT A – Appendix 3 LID ID 3

Acct # 262502-3-146-2004

County Tax Roll Name Sandstrom Property, LLC

County Delivery Address 5725 NE 77th St.

County City, State, Zip Seattle, WA 98115

Site Address 278 Winslow Way E

City Records Name Sandstrom Property, LLC

AREA (Sq.Ft.) 39,640

LID Assessment $ 90,546.38

Legal Description: AUDITOR’S FILE NO. 262502-3-146-2004 Parcel I: That portion of the Northwest quarter of the Southwest quarter of Section 26, Township 25 North, Range 2 East, W.M., in Kitsap County, Washington, described as follows: Beginning at the Southwest corner of the Northwest quarter of the Southwest quarter; Thence North 20 feet; Thence East 618.5 feet, Thence North 150 feet to the True Point of Beginning; Thence East 100 feet; Thence North 50 feet; Thence West 100 feet; Thence South 50 feet to the True Point of Beginning; Parcel II: That portion of the Northwest quarter of the Southwest quarter of Section 26 Township 25 North, Range 2 East, W.M., in Kitsap County, Washington, described as follows: Beginning at the Southwest corner of the North half of the Southwest quarter of said Section 26; Thence North 20 feet; Thence East 618.5 feet to the True Point of Beginning; Thence North 150 feet; Thence East 54 feet 9 inches; Thence South 150 feet; Thence West 54 feet 9 inches to the True Point of Beginning; EXCEPT the South 8 feet; Parcel III: That portion of the Northwest quarter of the Southwest quarter, Section 26, Township 25 North, Range 2 East, W.M., in Kitsap County, Washington, described as follows: Beginning at the Southwest corner of said Northwest quarter of the Southwest quarter; Thence North 20 feet; Thence East 477 feet to the True Point of Beginning; Thence continuing East 30 feet; Thence North 100 feet; Thence West 30 feet; Thence South 100 feet to the True Point of Beginning; EXCEPT the South 8 feet; Parcel IV: That portion of the Northwest quarter of the Southwest quarter of Section 26, Township 25 North, Range 2 East, W.M., in Kitsap County, Washington, described as follows: Beginning at the Southwest corner of said Northwest quarter of the Southwest quarter; Thence North 20 feet; Thence East 507 feet to the True Point of Beginning; Thence East 111.5 feet; Thence North 310 feet; Thence West 141.5 feet; Thence South 210 feet; Thence East 30 feet; Thence South 100 feet to the True Point of Beginning; EXCEPT the South 8 feet; EXCEPT that portion of the Northwest quarter of the Southwest quarter in Section 26, Township 25 North, Range 2 East, W.M., described as follows: Beginning at the Southwest corner of the Northwest quarter of the Southwest quarter; Thence North 1°20'07” East along the West line of said Section, 20 feet; Thence South 88°41'21” East parallel to the South line of said Northwest quarter of the Southwest quarter 477 feet; Thence North 1°20'07” East 200 feet and the True Point of Beginning; Thence continuing North 1°20'07” East 110 feet; Thence South 88°41'21” East 141.50 feet; Thence South 1°20'07” East 110 feet; Thence North 88°41'21” West 141.50 feet to the True Point of Beginning; (Auditor's File No. 9610070207). Situate in the City of Bainbridge Island, Kitsap County, Washington. Approval: _______________________________________________ Signature _______________________________________________ Printed Signature _______________________________________________ Date

STATE OF WASHINGTON COUNTY OF:

ss.

I certify that I know or have satisfactory evidence that _________________________________ is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument and acknowledged it as the ____________________________ of the _______________________________, a Washington _____________________________, to be the free and voluntary act of such corporation for the uses and purposes mentioned in the instrument. Dated this ______ day of ________________________, 2009.

________________________________________________________ (Signature of Notary) ________________________________________________________ (Legibly Print or Stamp Name of Notary) Notary public in and for the State of Washington, residing at: ________________________________________________ My Appointment expires: ____________________________

17 Winslow Way Reconstruction Project Agreement and Petition – Legal Descriptions EXHIBIT A – Appendix 4 LID ID 4

Acct # 262502-3-056-2002

County Tax Roll Name Winslow Hardware & Mercantile

County Delivery Address 1237 Hawley Way NE

County City, State, Zip Bainbridge Island, WA 98110

Site Address 240 Winslow Way E

City Records Name Schuricht

AREA (Sq.Ft.) 10,019

LID Assessment $ 31,498.74

Legal Description: AUDITOR’S FILE NO. 262502-3-056-2002 Resultant Parcel B of Boundary Line Adjustment recorded under Auditor's File No. 9410260234, described as follows: That portion of the Northwest quarter of the Southwest quarter of Section 26, Township 25 North, Range 2 East, W.M., Kitsap County, Washington, described as follows: Beginning at the Southwest corner of said subdivision; Thence North, a distance of 28 feet; Thence East, a distance of 477 feet to the True Point of Beginning; Thence North, a distance of 202 feet; Thence West, a distance of 50 feet; Thence South, a distance of 202 feet to a point which is West of the True Point of Beginning; Thence East a distance of 50 feet to the True Point of Beginning. Approval: _______________________________________________ Signature _______________________________________________ Printed Signature _______________________________________________ Date

STATE OF WASHINGTON COUNTY OF:

ss.

I certify that I know or have satisfactory evidence that _______________________________ is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument and acknowledged it as the ____________________________ of the _______________________________, a Washington corporation, to be the free and voluntary act of such corporation for the uses and purposes mentioned in the instrument. Dated this ______ day of ________________________, 2009. ________________________________________________________ (Signature of Notary) ________________________________________________________ (Legibly Print or Stamp Name of Notary)

Notary public in and for the State of Washington, residing at: ________________________________________________ My Appointment expires: ____________________________

18 Winslow Way Reconstruction Project Agreement and Petition – Legal Descriptions EXHIBIT A – Appendix 5, 6, 7 LID ID 5

Acct # 262502-3-060-2006

County Tax Roll Name Brandt, James & Linda

County Delivery Address POB 11187

County City, State, Zip Bainbridge Island, WA 98110

Site Address 210 Winslow Way E

City Records Name Brandt, James & Linda

AREA (Sq.Ft.) 4,792

6

262502-3-058-2000

Brandt, James & Linda

POB 11187

Bainbridge Island, WA 98110

Parking Lot

Brandt, James & Linda

15,682

$

9,739.61

7

262502-3-059-2009

Brandt, James & Linda

POB 11188

Bainbridge Island, WA 98111

150 Winslow Way E

Brandt, James & Linda

4,356

$

15,269.39

LID Assessment $ 32,128.71

Legal Description: AUDITOR’S FILE NO’s.: 262502-3-058-2000, 262502-3-059-2009, 262502-3-060-2006 That portion of the Northwest quarter of the Southwest quarter of Section 26, Township 25 North, Range 2 East, W.M., Kitsap County, Washington, described as follows: Beginning at the Southwest corner of said Northwest quarter Southwest quarter; Thence North 0°29'50” West along the West line of Northwest quarter of the Southwest quarter 20 feet; Thence North 89°28'55” East on a line parallel to the South line of said Northwest quarter of the Southwest quarter 337 feet; Thence North 0°29'50” West 8 feet to North margin of Winslow Way & the True Point of Beginning; Thence North 89°28'55” East along said street margin 90.00 feet; Thence North 0°29'50” West 202.00 feet; Thence South 89°28'55” West 73.50 feet; Thence North 0°29'50” West 100 feet; Thence South 89°28'55” West 122.50 feet;Thence South 0°29'50” East 210.00 feet; Thence North 89°28'55 East 106.00 feet; Thence South 0°29'50” East 92 feet to the True Point of Beginning; EXCEPT the following described tract:Beginning at the Southwest corner of said Northwest quarter Southwest quarter; Thence North 0°29'50” West along the West line of Northwest quarter of the Southwest quarter 20 feet; Thence North 89°28'55” East on a line parallel to the South line of said Northwest quarter of the Southwest quarter 337 feet; Thence North 0°29'50” West 8 feet to North margin of Winslow Way; Thence North 89°28'55” East along said street margin 90.00 feet; Thence North 0°29'50” West 202 feet; Thence South 89°28'55” West 73.50 feet to the True Point of Beginning; Thence North 0°29'50” West 100 feet; Thence South 89°28'55” West 122.50 feet;Thence South 0°29'50” East 139 feet; Thence North 89°28'55 East 122 feet; Thence North 0°29'50” East to the True Point of Beginning. Approval: STATE OF WASHINGTON ss. COUNTY OF: _______________________________________________ Signature _______________________________________________ Printed Signature _______________________________________________ Date

I certify that I know or have satisfactory evidence that ___________________________________and___________________________ are the persons who appeared before me, and said persons acknowledged that they signed this instrument, on oath stated that they are authorized to execute the instrument and acknowledged it as the free and voluntary act of them for the uses and purposes mentioned in the instrument. Dated this ______ day of ________________________, 2009.

Approval: _______________________________________________ Signature _______________________________________________ Printed Signature

________________________________________________________ (Signature of Notary) ________________________________________________________ (Legibly Print or Stamp Name of Notary) Notary public in and for the State of Washington, residing at:

_______________________________________________ Date

________________________________________________ My Appointment expires: ____________________________

19 Winslow Way Reconstruction Project Agreement and Petition – Legal Descriptions EXHIBIT A – Appendix 8 LID ID 8

Acct # 262502-3-062-2004

County Tax Roll Name Roberts Jewelry

County Delivery Address POB 345

County City, State, Zip Indianola, WA 98342

Site Address 194 Winslow Way E

City Records Name Roberts Jewelry

AREA (Sq.Ft.) 5,227

LID Assessment $ 20,979.16

Legal Description: AUDITOR’S FILE NO. 262502-3-062-2004 Parcel I: That portion of the Northwest quarter of the Southwest quarter of Section 26, Township 25 North, Range 2 East, W.M., Kitsap County, Washington, described as follows : Beginning at a point on the Southwest corner of the North half of the Southwest quarter of said Section; Thence North 20 feet; Thence East 317 feet to True Point of Beginning; Thence North 100 feet; Thence East 20 feet; Thence South 100 feet; Thence West 20 feet to the Point of Beginning; Parcel II: That portion of the Northwest quarter of the Southwest quarter of Section 26, Township 25 North, Range 2 East, W.M., Kitsap County, Washington, described as follows: Beginning at a point on the Southwest corner of the North half of the Southwest quarter of said Section; Thence North 20 feet; Thence East 317 feet to True Point of Beginning Thence North 100 feet; Thence East 5 feet; Thence South 100 feet; Thence West 5 feet to the Point of Beginning; Parcel III: That portion of the Northwest quarter of the Southwest quarter of Section 26, Township 25 North, Range 2 East, W.M., Kitsap County, Washington, described as follows: Beginning at a point on the Southwest corner of the North half of the Southwest quarter of said Section; Thence North 20 feet; Thence East 282 feet to True Point of Beginning Thence North 100 feet; Thence East 30 feet; Thence South 100 feet; Thence West 30 feet to the Point of Beginning; EXCEPT that portion of deeded to the City of Winslow; AND EXCEPT the West3 feet thereof; Approval: _______________________________________________ Signature _______________________________________________ Printed Signature _______________________________________________ Date

STATE OF WASHINGTON COUNTY OF:

ss.

I certify that I know or have satisfactory evidence that _________________________ is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument and acknowledged it as the _________________________________ of the __________________________________, a Washington____________________, to be the free and voluntary act of such corporation for the uses and purposes mentioned in the instrument. Dated this ______ day of ________________________, 2009.

________________________________________________________ (Signature of Notary) ________________________________________________________ (Legibly Print or Stamp Name of Notary) Notary public in and for the State of Washington, residing at: ________________________________________________ My Appointment expires: ____________________________

20 Winslow Way Reconstruction Project Agreement and Petition – Legal Descriptions EXHIBIT A – Appendix 9 LID ID 9

Acct # 262502-3-063-2003

County Tax Roll Name Burlingame, Frank & Joanne

County Delivery Address 9658 NE Yaquina

County City, State, Zip Bainbridge Island, WA 98110

Site Address 176 Winslow Way E

City Records Name Burlingame, Frank & Joanne

AREA (Sq.Ft.) 5,663

LID Assessment $ 26,298.95

Legal Description: AUDITOR’S FILE NO. 262502-3-063-2003 That portion of the Northwest quarter of the Southwest quarter of Section 26, Township 25 North, Range 2 East, W.M., Kitsap County, Washington, described as follows: Commencing at the Southwest corner of the North half of the Southwest quarter of said Section 26; Thence North 20 feet; Thence East 220 feet to True Point of Beginning; Thence North 100 feet; Thence East 65 feet; Thence South 100 feet; Thence West 65 feet to the Point of Beginning. EXCEPT the South 8 feet thereof conveyed to the City of Winslow by deed bearing Auditor's File No’s. 672147 & 672159 Approval: _______________________________________________ Signature _______________________________________________ Printed Signature _______________________________________________ Date

STATE OF WASHINGTON COUNTY OF:

ss.

I certify that I know or have satisfactory evidence that _______________________________and__________________________________ are the persons who appeared before me, and said persons acknowledged that they signed this instrument, on oath stated that they are authorized to execute the instrument and acknowledged it as the free and voluntary act of them for the uses and purposes mentioned in the instrument. Dated this ______ day of ________________________, 2009.

Approval: _______________________________________________ Signature

________________________________________________________ (Signature of Notary)

_______________________________________________ Printed Signature

________________________________________________________ (Legibly Print or Stamp Name of Notary)

_______________________________________________ Date

Notary public in and for the State of Washington, residing at: ________________________________________________ My Appointment expires: ____________________________

21 Winslow Way Reconstruction Project Agreement and Petition – Legal Descriptions EXHIBIT A – Appendix 10, 11, 13 LID ID 10 11 13

Acct # 262502-3-069-2007 262502-3-072-2002 262502-3-024-2001

County Tax Roll Name Miller, Earl & Linda Miller, Earl & Linda East Winslow Property, LLC

County Delivery Address 205 Ludlow Bay Rd 205 Ludlow Bay Rd 205 Ludlow Bay Rd

County City, State, Zip Port Ludlow, WA 98365 Port Ludlow, WA 98365 Port Ludlow, WA 98365

Site Address 156 Winslow Way E 106 Madison Ave N 119 Winslow Way E

City Records Name Miller, Earl & Linda Miller, Earl & Linda Miller, Earl & Linda

AREA (Sq.Ft.) 19,166 13,939 8,712

LID Assessment $ 47,268.11 $ 51,477.94 $ 47,228.11

Legal Descriptions for: 262502-3-069-2007, 262502-3-072-2002, 262502-3-024-2001 AUDITOR’S FILE NO. 262502-3-069-2007 Parcel I: That portion of the Northwest quarter of the Southwest quarter, Section 26, Township 25 North, Range 2 East, W.M., described as follows: Beginning at a point 20 feet North and 20 feet East of the Southwest corner of the Northwest quarter of the Southwest quarter of said Section; Thence East 120 feet to the True Point of Beginning; Thence North 217.60 feet; Thence East 80 feet; Thence North 92 feet, more or less, to a point 330 feet North of the South line of the above referred to subdivision; Thence East 11 feet; Thence South 310 feet; Thence West 91 feet, more or less, to the True Point of Beginning; EXCEPT all roads, including any portion conveyed to the Town of Winslow; AND EXCEPT, that portion conveyed to Frank H. Burlingame and Joanne C. Burlingame, husband and wife, by instrument recorded under Auditor's File No. 8505240070; Parcel II: An easement for ingress, egress and utilities over, under and across the following parcel of land, located in Kitsap County, Washington, to wit: That portion of the Northwest quarter of the Southwest quarter of Section 26, Township 25 North, Range 2 East, W.M., described as follows: The East 9.00 feet of the following described property: Beginning at a point which is 238 feet North and 30 feet East of the Southwest corner of said subdivision; Thence East, a distance of 190 feet; Thence North a distance of 92 feet; Thence West a distance of 190 feet; Thence South, a distance of 92 feet to the True Point of Beginning. AUDITOR’S FILE NO. 262502-3-072-2002 That portion of the Northwest quarter of the Southwest quarter of Section 26, Township 25 North, Range 2 East, W.M., in Kitsap County, Washington, described as follows: Beginning at the Southwest corner of the North half of the Southwest quarter of said Section 26;Thence North 20 feet; Thence East 20 feet to the True Point of Beginning; Thence North 115 feet; Thence East 120 feet; Thence South 115 feet; Thence West 120 feet to the True Point of Beginning; EXCEPT that portion, if any, lying within Madison Avenue North; AND EXCEPT that portion, if any, lying within Winslow Way East. AUDITOR’S FILE NO. 262502-3-024-2001 Lot B of City of Winslow Short Plat recorded under Auditor's File No. 8112160057, being described as follows:That portion Government Lot 4, Section 26, Township 25 North, Range 2 East, W.M., in Kitsap County, Washington, described as follows: Commencing at the Northwest corner of said Government Lot 4, a concrete monument;Thence along the West line of said Government Lot 4 South 0°29'15” East 200 feet;Thence North 89°28'55” East along the centerline of a 20 foot vacated alley 130.42 feet to the True Point of Beginning; Thence continuing North 89°28'55”East, along said centerline of a 20 foot vacated alley, 14.58 feet;Thence North 0°29’15” West, 160.00 feet:Thence South 89°28'55” West along the South right of way of Winslow Way 90.48 feet;Thence South 0°50' 18” East, more or less, on a common line between butting buildings 92.74 feet;Thence North 89°28'55”East 75.12 feet;Thence South 0°40'00” East 67.26 feet to the True Point of Beginning. STATE OF WASHINGTON ss. COUNTY OF: Approval: I certify that I know or have satisfactory evidence that _______________________________________________ __________________________________and____________________________are Signature the persons who appeared before me, and said persons acknowledged that they signed this instrument, on oath stated that they are authorized to execute the _______________________________________________ instrument and acknowledged it as the free and voluntary act of them for the uses Printed Signature and purposes mentioned in the instrument. Dated this ______ day of ________________________, 2009. _______________________________________________ Date ________________________________________________________ (Signature of Notary) Approval: _______________________________________________ Signature

________________________________________________________ (Legibly Print or Stamp Name of Notary)

_______________________________________________ Printed Signature

Notary public in and for the State of Washington, residing at: ________________________________________________

_______________________________________________ Date

My Appointment expires: ____________________________

22 Winslow Way Reconstruction Project Agreement and Petition – Legal Descriptions EXHIBIT A – Appendix 12 LID ID 12

Acct # 262502-3-073-2001

County Tax Roll Name IKON INVESTMENTS INC

County Delivery Address 8725 Sportsman Club Rd NE.

County City, State, Zip Bainbridge Island, WA 98110

Site Address 101 Madison Ave S

City Records Name Lubovich

AREA (Sq.Ft. )

LID Assessme nt

5,663

$ 14,859.41

Legal Description: AUDITOR’S FILE NO. 262502-3-073-2001 That portion of Government Lot 4, Section 26, Township 25 North, Range 2 East, W.M., Kitsap County, Washington, described as follows: Commencing at the Northwest corner of said Government Lot 4; Thence along the West line of said Government Lot 4 South 0°29'15” East 200 feet; Thence North 89°28'55” East, along the centerline of a 20 foot vacated alley, 20 feet to the True Point of Beginning; Thence continuing North 89°28'55”East along said centerline of a 20 feet vacated alley 33.80 feet; Thence North 0°40'00” West 67.26 feet; Thence North 89°28'55”East 1.50 feet; Thence North 0°50' 18” West, more or less, on a common line between abutting buildings 92.74 feet; Thence South 89°28'55” West along the South right of way of Winslow Way 34.52 feet; Thence South 0°29'15” East along the East right of way of Madison Avenue 160 feet to the True Point of Beginning; Subject to easements and restrictions of record; (Being Lot A of City of Winslow Short Plat recorded under Auditor's File No. 8112160057) Approval: _______________________________________________ Signature _______________________________________________ Printed Signature _______________________________________________ Date

STATE OF WASHINGTON COUNTY OF:

ss.

I certify that I know or have satisfactory evidence that _______________________________ is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument and acknowledged it as the ____________________________ of the _______________________________, a Washington _____________________________, to be the free and voluntary act of such corporation for the uses and purposes mentioned in the instrument. Dated this ______ day of ________________________, 2009.

________________________________________________________ (Signature of Notary) ________________________________________________________ (Legibly Print or Stamp Name of Notary) Notary public in and for the State of Washington, residing at: ________________________________________________ My Appointment expires: ____________________________

23 Winslow Way Reconstruction Project Agreement and Petition – Legal Descriptions EXHIBIT A – Appendix 14, 15 LID ID 14 15

Acct # 262502-3-074-2000 262502-3-077-2007

County Tax Roll Name McCrary Frank Ronald McCrary Frank Ronald

County Delivery Address 19136 Viking Way NW 19136 Viking Way NW

County City, State, Zip Poulsbo, WA 98370 Poulsbo, WA 98370

Site Address 155 Winslow Way E 191 Winslow Way E

City Records Name McCrary Frank Ronald McCrary Frank Ronald

AREA (Sq.Ft.) 18,731 10,019

LID Assessment $ 68,607.26 $ 36,078.56

Legal Descriptions for: 262502-3-074-2000, 262502-3-077-2007 AUDITOR’S FILE NO. 262502-3-074-2000 That portion of Government Lot 4, Section 26, Township 25 North, Range 2 East, W.M, in Kitsap County, Washington, described as follows: Beginning at the Northwest corner of Government Lot 4; Thence North 89°28'55” East along the North line of said Government Lot 4, 145 feet; Thence South 0°29'15” East 30 feet to the True Point of Beginning; Thence North 89°28'55” East 120 feet; Thence South 0°29'15” East 160 feet; Thence South 89°28'55” West 120 feet; Thence North 0°29'15” West 160 feet to the True Point of Beginning; EXCEPT the North 20 feet thereof conveyed to Kitsap County and Town of Winslow for road purposes by deeds recorded under Auditor's File Nos. 347624 and 670145. TOGETHER with the North half of the vacated 20 foot alley adjoining, which attaches by operation of law. AUDITOR’S FILE NO. 262502-3-077-2007 That portion of Government Lot 4, Section 26, Township 25 North, Range 2 East, W.M, in Kitsap County, Washington, described as follows: Beginning at the Northwest corner of said Government Lot 4; Thence North 89°28'55” East 265 feet; Thence South 0°29'15” East 50 feet to the True Point of Beginning of the tract herein described; Thence North 89° 28'55” East 63 feet; Thence South 0°29'15’ East 150 feet; Thence South 89°28'55’ West 63 feet; Thence North 0°29'15” West 150 feet to the True Point of Beginning. Approval: _______________________________________________ Signature _______________________________________________ Printed Signature _______________________________________________ Date

STATE OF WASHINGTON COUNTY OF:

ss.

I certify that I know or have satisfactory evidence that ____________________________ is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument and acknowledged it as the free and voluntary act of such corporation for the uses and purposes mentioned in the instrument. Dated this ______ day of ________________________, 2009. ________________________________________________________ (Signature of Notary) ________________________________________________________ (Legibly Print or Stamp Name of Notary)

Notary public in and for the State of Washington, residing at: ________________________________________________ My Appointment expires: ____________________________

24 Winslow Way Reconstruction Project Agreement and Petition – Legal Descriptions EXHIBIT A – Appendix 16 LID ID 16

Acct # 262502-3-116-2000

County Tax Roll Name Washington Mutual Bank

County Delivery Address PO BOX 7788

County City, State, Zip Newport Beach, CA 92658

Site Address 231 Winslow Way E

City Records Name Washington Mutual Bank

AREA (Sq.Ft.) 14,375

LID Assessment $ 43,448.26

Legal Description AUDITOR’S FILE NO. 262502-3-116-2000 That portion of Government Lot 4, Section 26, Township 25 North, Range 2 East, W.M, in Kitsap County, Washington, described as follows:Beginning at the Northwest corner of said Government Lot 4;Thence North 89°28'55” East along the North line of said Government Lot 4 a distance of 328 feet; Thence South 0°28'15” East 40 feet to the True Point of Beginning; Thence North 89°28'55” East 96.3 feet;Thence South 0°29'15” East 150 feet; Thence South 89°28'55” West 96.3 feet; Thence North 0°29'15” West 150 feet to the True Point of Beginning; EXCEPT the North10 feet thereof conveyed to the Town of Winslow by deed recorded under Auditor's File No. 672146 TOGETHER with that portion of alley vacated by Ordinance No. 71-5 recorded under Auditor's File No. 992108, which attaches said premises by operation of law. Approval: _______________________________________________ Signature _______________________________________________ Printed Signature _______________________________________________ Date

STATE OF WASHINGTON COUNTY OF:

ss.

I certify that I know or have satisfactory evidence that ____________________________ is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument and acknowledged it as the ____________________________ of the _______________________________, a Washington corporation, to be the free and voluntary act of such corporation for the uses and purposes mentioned in the instrument. Dated this ______ day of ________________________, 2009. ________________________________________________________ (Signature of Notary) ________________________________________________________ (Legibly Print or Stamp Name of Notary)

Notary public in and for the State of Washington, residing at: ________________________________________________ My Appointment expires: ____________________________

25 Winslow Way Reconstruction Project Agreement and Petition – Legal Descriptions EXHIBIT A – Appendix 17 LID ID 17

Acct # 262502-3-081-2001

County Tax Roll Name American Marine Bank

County Delivery Address PO BOX 10788

County City, State, Zip Bainbridge Island, WA 98110

Site Address 249 Winslow Way E

City Records Name Rodac

AREA (Sq.Ft.) 41,382

LID Assessment $ 69,937.20

Legal Description: AUDITOR’S FILE NO. 262502-3-081-2001 Parcel I:That portion of Government Lot 4, Section 26, Township 25 North, Range 2 East, W.M, in Kitsap County, Washington, described as follows:Beginning at a point 425 feet East and 50 feet South of the Northwest corner of said Government Lot 4;Thence South 140 feet;Thence East 100 feet;Thence North 140 feet;Thence West 100 feet to the True Point of Beginning; TOGETHER with the North half of the vacated 20 foot alley adjoining, which attaches by operation of law and recorded under Auditor's File No. 992108.Parcel II:That portion of Government Lot 4, Section 26, Township 25 North, Range 2 East, W.M, in Kitsap County, Washington, described as follows:Lots 11 and 12, Block 1, Stafford’s Addition to Winslow, as per plat recorded in Volume 8, Page 11, records of Kitsap County, Washington;TOGETHER with the South half of the vacated 20 foot alley adjoining, which attaches by operation of law and recorded under Auditor's File No. 992108. Approval: _______________________________________________ Signature _______________________________________________ Printed Signature _______________________________________________ Date

STATE OF WASHINGTON COUNTY OF:

ss.

I certify that I know or have satisfactory evidence that ____________________________ is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument and acknowledged it as the ____________________________ of the _______________________________, a Washington_____________________________, to be the free and voluntary act of such corporation for the uses and purposes mentioned in the instrument. Dated this ______ day of ________________________, 2009.

________________________________________________________ (Signature of Notary) ________________________________________________________ (Legibly Print or Stamp Name of Notary)

Notary public in and for the State of Washington, residing at: ________________________________________________ My Appointment expires: ____________________________

26 Winslow Way Reconstruction Project Agreement and Petition – Legal Descriptions EXHIBIT A – Appendix 18, 19, 20 LID ID 18 19 20

Acct # 262502-3-082-2000 262502-3-084-2008 4114-001-001-0002

County Tax Roll Name Town & Country Market, Inc. Town & Country Market, Inc. Town & Country Market, Inc.

County Delivery Address 2208 NW Market #507 2208 NW Market #507 2208 NW Market #507

County City, State, Zip Seattle, WA 98107 Seattle, WA 98107 Seattle, WA 98107

Site Address 256 Winslow Way E 343 Winslow Way E Parking Lot

City Records Name Town & Country Market, Inc. Town & Country Market, Inc. Town & Country Market, Inc.

AREA (Sq.Ft.) 14,810 48,787 58,370

LID Assessment $ 48,828.05 $ 125,714.97 $ 41,168.35

Legal Descriptions for: 262502-3-082-2000, 262502-3-084-2008, 4114-001-001-0002 AUDITOR’S FILE NO. 262502-3-082-2000 The West 100 feet of the following described property:That portion of Government Lot 4, Section 26, Township 25 North, Range 2 East, W.M, in Kitsap County, Washington, described as follows:Beginning at the Northwest corner of said Government Lot 4;Thence North 89°28'55” East along the North line thereof 650.0 feet; Thence South 0°28'15” East 50 feet to the True Point of Beginning; Thence North 89°28'55” East parallel to the North line of said Government Lot 4, a distance of 265.92 feet;Thence South 0°28'55” East 140 feet;Thence South 89°28'55” West 390.92 feet; Thence North 0°28'15” West 140 feet;Thence North 89°28'55” East 100 feet;Thence South 0°28'15” East 40 feet;Thence North 89°28'55” East 25 feet;Thence North 0°28'15” West 40 feet to the True Point of Beginning; TOGETHER with that portion of vacated alley adjoining which attaches by operation of law per Ordinance No. 140, Town of Winslow, dated December 3, 1963. AUDITOR’S FILE NO. 262502-3-084-2008 Resultant Parcel A of Boundary Line Adjustment recorded under Auditor’s File No. 200512130384, being a portion of Government Lot 4, Section 26, Township 25 North, Range 2 East, W.M, in Kitsap County, Washington, more particularly described as follows:Parcel I: That portion of Government Lot 4, Section 26, Township 25 North, Range 2 East, W.M., in Kitsap County, Washington, described as follows: Beginning at the Northwest corner of said Government Lot 4; Thence running North 89°28'55” East along the North boundary thereof for a distance of 650.00 feet; Thence South 0°28'15” East 50 feet to the True Point of Beginning; Thence continuing South 0°28'15” East for a distance of 140.00 feet; Thence North 89°28'55” East for a distance of 265.92 feet; Thence North 0°28'15” West for a distance of 140 feet; Thence South 89°28'55” West 265.92 feet to the True Point of Beginning; TOGETHER with that portion of vacated alley adjoining which attaches by operation of law per Ordinance No. 71-5, recorded under Auditor's File No. 992108 and Ordinance No.140, Town of Winslow, dated December 3, 1963. Parcel II: The South 100 feet of the following: That portion of Government Lot 4, Section 26, Township 25 North, Range 2 East, W.M., in Kitsap County, Washington, described as follows: Beginning at the Northwest corner of said Government Lot 4; Thence running North 89°28'55” East along the North boundary thereof for a distance of 625.00 feet; Thence South 0°28'15” East for a distance of 50 feet to the True Point of Beginning; Thence South 0°28'15” East for a distance of 140.00 feet; Thence North 89°28'55” East for a distance of 25 feet; Thence North 0°28'15” West for a distance of 140 feet; Thence South 89°28'55” West for a distance of 25.00 feet to the True Point of Beginning; TOGETHER with that portion of vacated alley adjoining which attaches by operation of law per Ordinance No. 71-5, recorded under Auditor’s File No. 992108 and Ordinance No. 140, Town of Winslow, dated December 3, 1963; Reserving unto the grantor however, a permanent easement across and under the Westerly one foot of said property for the purpose of maintaining a propane gas line. AUDITOR’S FILE NO. 4114-001-001-0002 That portion of Government Lot 4, Section 26, Township 25 North, Range 2 East, W.M., in Kitsap County, Washington, described as follows: Lots, 1, 2, 3, 4, 5 and 6, Block 1, Stafford's Addition to Winslow, as per plat recorded in Volume 8 of plats, Pages11, 12 and 13, records of Kitsap County, Washington;TOGETHER with that portion of vacated alley adjoining which attaches by operation of law, per Ordinance No. 71-5, recorded under Auditor's File No. 992108 and Ordinance No.140, Town of Winslow, dated December 3, 1963;EXCEPT Brien Drive SE, as conveyed to the City of Winslow by deed recorded under Auditor's File No. 988862; TOGETHER with an easement for parking, ingress and egress over and across the westerly 10 feet of Lot 7 in said plat.

Approval: _______________________________________________ Signature

STATE OF WASHINGTON COUNTY OF:

ss.

I certify that I know or have satisfactory evidence that ____________________________ is the person who appeared before me, and said person acknowledged that he signed this instrument,

_______________________________________________ Printed Signature

on oath stated that he is authorized to execute the instrument and acknowledged it as the ____________________________ of the _______________________________, a Washington

_______________________________________________ Date

corporation, to be the free and voluntary act of such corporation for the uses and purposes mentioned in the instrument. Dated this ________ day of ________________________, 2009.

________________________________________________________ (Signature of Notary) ________________________________________________________ (Legibly Print or Stamp Name of Notary) Notary public in and for the State of Washington, residing at: ________________________________________________ My Appointment expires: ____________________________

27 Winslow Way Reconstruction Project Agreement and Petition – Legal Descriptions EXHIBIT A – Appendix 21 LID ID 21

Acct # 262502-3-085-2007

County Tax Roll Name American Marine Bank Trust Dept.

County Delivery Address PO BOX 10788

County City, State, Zip Bainbridge Island, WA 98110

Site Address 393 Winslow way E

City Records Name

AREA (Sq.Ft.)

American Marine Bank Trust Dept.

9,148

LID Assessment $

29,988.84

Legal Description: AUDITOR’S FILE NO. 262502-3-085-2007 Resultant Parcel B of Boundary Line Adjustment recorded under Auditor’s File No. 200512130384, being a portion of Government Lot 4, Section 26, Township 25 North, Range 2 East, W.M, in Kitsap County, Washington, more particularly described as follows:Parcel I: That portion of Government Lot 4, Section 26, Township 25 North, Range 2 East, W.M, in Kitsap County, Washington, described as follows:Beginning at the Northwest corner of said Government Lot 4;Thence South 00°32’40” West along the west boundary of said Government Lot 4, 190 feet;Thence South 80°29’30” East 20 feet to the intersection of the East line of Madison Street and the North line of the 20 foot alley;Thence continuing South 89°29” 30” East along the North line of said alley 1005.92 feet to the True Point of Beginning;Thence North 00°32’40” West 140 feet;Thence North 89°29’30” West 50 feet;Thence South 00°32’40” East 140 feet;Thence South 89°29’30” East to the True Point of Beginning.Together with and Subject to easements, restrictions and reservations of record.Parcel II: That portion of Government Lot 4, Section 26, Township 25 North, Range 2 East, W.M, in Kitsap County, Washington, described as follows:Beginning at the Northwest corner of said Government Lot 4;Thence running North 89°28'55” East along the North boundary thereof, 915.92 feet; Thence South 0°28'15” East 50 feet to the True Point of Beginning; Thence continuing South 0°28'15” East 140.00 feet; Thence North 89°28'55” East 60 feet; Thence North 0°28'15” West 140 feet; Thence South 89°28'55” West 60 feet to the True Point of Beginning; TOGETHER with that portion of the right of way along the South boundary thereof dedicated under Kitsap County Auditor’s File No. 571404 and vacated under Town of Winslow Ordinance No. 140 that would attach by operation of law. EXCEPT that portion of Government Lot 4 described as follows:Beginning at the Northwest corner of said Government Lot 4;Thence along the North line thereof, South 88°40’48” East 915.92 feet;Thence South 01°20’42” West 50.00 feet to the Northerly right of way of Winslow Way East and the True Point of Beginning;Thence along said right of way, South 88°40’48” East 45.17 feet to the Northerly extension of the West face of an existing building;Thence along said West face and its Northerly and Southerly extensions, South 01°23’48” West 59.84 feet;Thence South 01°21’18” West 80.17 feet to the Northerly right of way of an unnamed street dedicated under Kitsap County Auditor’s File No. 571404;Thence along said right of way North 88°40’48” West 41.49 feet to the Northeast corner of that portion of said right of way vacated by Town of Winslow Ordinance No. 140;Thence along the West line of said vacation, South 01°19’12” West 10.00 feet to the centerline of said vacation;Thence along said centerline, North 88°40’48” West 3.61 feet to a point which bears South 01°20’42” West from the True Point of Beginning;Thence North 01°20’42” East 150.01 feet to the True Point of Beginning.Together with and Subject to easements, restrictions and reservations of record.

Approval: _______________________________________________ Signature

STATE OF WASHINGTON COUNTY OF:

ss.

_______________________________________________ Printed Signature

I certify that I know or have satisfactory evidence that ____________________________ is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument and acknowledged it as the ________________________________ of the _______________________________, a

_______________________________________________ Date

Washington_____________________________, to be the free and voluntary act of such corporation for the uses and purposes mentioned in the instrument. Dated this ______ day of ________________________, 2009.

________________________________________________________ (Signature of Notary) ________________________________________________________ (Legibly Print or Stamp Name of Notary) Notary public in and for the State of Washington, residing at: ________________________________________________ My Appointment expires: ____________________________

28 Winslow Way Reconstruction Project Agreement and Petition – Legal Descriptions EXHIBIT A – Appendix 22 LID ID 22

Acct # 262502-3-083-2009

County Tax Roll Name Christian Science of Bainbridge Island

County Delivery Address PO BOX 10488

County City, State, Zip Bainbridge Island, WA 98110

Site Address 295 Winslow Way E

City Records Name Christian Science of Bainbridge Island

AREA (Sq.Ft.)

LID Assessment

871

Not Assessed

Legal Description: AUDITOR’S FILE NO. 262502-3-083-2009 That portion of Government Lot 4, Section 26, Township 25 North, Range 2 East, W.M, in Kitsap County, Washington, described as follows: Beginning at the Northwest corner of said Government Lot 4;Thence North 89°28'55” East along the North boundary thereof for a distance of 625.00 feet; Thence South 0°28'15” East for a distance of 50 feet to the True Point of Beginning; Thence South 0°28'15” East for a distance of 140.00 feet;Thence North 89°28'55” East for a distance of 25 feet;Thence North 0°28'15” West for a distance of 140 feet;Thence South 89°28'55” West for a distance of 25.00 feet to the True Point of Beginning; EXCEPT the South 100 feet thereof.

 Approval: _______________________________________________ Signature _______________________________________________ Printed Signature _______________________________________________ Date

STATE OF WASHINGTON COUNTY OF:

ss.

I certify that I know or have satisfactory evidence that ______________________________ is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument and acknowledged it as the __________________________ of the _________________________, a Washington __________________, to be the free and voluntary act of such corporation for the uses and purposes mentioned in the instrument Dated this ______ day of ________________________, 2009. ________________________________________________________ (Signature of Notary) ________________________________________________________ (Legibly Print or Stamp Name of Notary) Notary public in and for the State of Washington, residing at: ________________________________________________ My Appointment expires: ____________________________

BRANDT JAMES & LINDA 262502-3-059-2009

9

11

5

8

BURLINGAME FRANK & JOANNE 262502-3-063-2003 ROBERTS JEWELERY 262502-3-062-2004

WINSLO W WAY W

4

1A

3

WINSLOW HARDWARE & MERCANTILE 262502-3-056-2002

HAGGAR SCRIBNER PROPERTIES 262502-3-048-2003

2

SANDSTROM PROPERTIES LLC 262502-3-146-2004

1C

BRANDT JAMES & LINDA 262502-3-060-2006

1B

HAGGAR SCRIBNER PROPERTIES 262502-3-050-2008

!

BRANDT JAMES & LINDA 262502-3-058-2000

7 MILLER EARL L & LINDA A 262502-3-072-2002

ERICKS EN AVE NE

6

10 MILLER EARL L & LINDA A 262502-3-069-2007

!

MADISON AVE N

MADRONE LN N

29

HAGGAR SCRIBNER PROPERTIES, LLC 262502-3-054-2004

WINS LOW WAY E

HAGGAR SCRIBNER PROPERTIES 262502-3-049-2002

12 IKON INVESTMENTS INC 262502-3-073-2001

!

MADISON AVE S

P:\Mapping\Maps_Generated\Winslow\07-10109.00\maps\Exhibit B - Winslow Way LID 11x17 - Legal.mxd

13

22

EAST WINSLOW PROPERTIES LLC 262502-3-024-2001

Data Source: Kitsap County GIS 2009. This map is a geographic representation based on information available. It does not represent survey data. No warranty is made concerning the accuracy, currency, or completeness of data depicted on this map.

18

15

14 MCCRARY FRANK RONALD 262502-3-074-2000

MCCRARY FRANK RONALD 262502-3-077-2007

16

TOWN & COUNTRY MARKET INC 262502-3-082-2000

WASHINGTON MUTUAL BANK 262502-3-116-2000

1601 Fifth Avenue, Suite 500 Seattle, WA 98101 T 206/505-3400 F 206/505-3406 www.bhcconsultants.com

AMERICAN MARINE BANK TRUST DEPT 262502-3-085-2007

TOWN & COUNTRY MARKET INC 262502-3-084-2008

21 !

17 AMERICAN MARINE BANK 262502-3-081-2001

BJ U

NE

DR

20 SE

TOWN & COUNTRY MARKET INC 4114-001-001-0002

Legend

MAP DATE: JUNE 2009

BHC CONSULTANTS LLC

19

BJUNE DR S E

FINCH PL SW

CHRISTIAN SCIENCE OF BAINBRIDGE ISLAND 262502-3-083-2009

LID Boundary

Same Ownership

Parcels

1 inch = 150 feet

0

75

Feet 150

:

City of Bainbridge Island - Winslow WINSLOW WAY RECONSTRUCTION

EXHIBIT B - WINSLOW WAY LID PROPERTY OWNER SUPPORT

30 Winslow Way Reconstruction Project LID PROPERTY ASSESSMENTS EXHIBT C LID ID

Acct #

County Tax Roll Name

County Delivery Address

County City, State, Zip

City Records Name

Site Address

LID Assessment

262502-3-160-2005

Virginia Mason Winslow

380 Winslow Way E

Bainbridge Island, WA 98110

380 Winslow Way E

24,829

0.57

1A

262502-3-049-2002

Virginia Mason Winslow

380 Winslow Way E

Bainbridge Island, WA 98111

141 Ericksen Ave NE Haggar Scribner Properties

3,920

0.09

$

8,239.67

1B

262502-3-048-2003

Virginia Mason Winslow

380 Winslow Way E

Bainbridge Island, WA 98111

143 Ericksen Ave NE Haggar Scribner Properties

10,454

0.24

$

23,599.06

1C 262502-3-050-2008

Virginia Mason Winslow

380 Winslow Way E

Bainbridge Island, WA 98111

380 Winslow Way E

Haggar Scribner Properties

1

Virginia Mason Winslow

AREA Area Front Side (Sq.Ft.) (Acre) (ft) (ft) 200

125

1A - 1B - 1C

10,454

0.24

$

63,497.46

2

262502-3-054-2004

Haggar Scribner Properties, LLC

3091 Point White Dr. NE

Bainbridge Island, WA 98110

310 Winslow Way E

Haggar Scribner Properties

12,197

0.28

74

192

$

54,597.82

3

262502-3-146-2004

Sandstrom Property, LLC

5725 NE 77th St.

Seattle, WA 98115

278 Winslow Way E

Sandstrom Property, LLC

39,640

0.91

196

192

$

90,546.38

4

262502-3-056-2002

Winslow Hardware & Mercantile

1237 Hawley Way NE

Bainbridge Island, WA 98110

240 Winslow Way E

Schuricht

10,019

0.23

50

202

$

31,498.74

5

262502-3-060-2006

Brandt, James & Linda

POB 11187

Bainbridge Island, WA 98110

210 Winslow Way E

Brandt, James & Linda

4,792

0.11

65

80

$

32,128.71

6

262502-3-058-2000

Brandt, James & Linda

POB 11187

Bainbridge Island, WA 98110

Parking Lot

Brandt, James & Linda

15,682

0.36

75

54

$

9,739.61

7

262502-3-059-2009

Brandt, James & Linda

POB 11188

Bainbridge Island, WA 98111

150 Winslow Way E

Brandt, James & Linda

4,356

0.1

196

403

$

15,269.39

8

262502-3-062-2004

Roberts Jewelery

POB 345

Indianola, WA 98342

194 Winslow Way E

Roberts Jewelery

5,227

0.12

52

92

$

20,979.16

9

262502-3-063-2003

Burlingame, Frank & Joanne

9658 NE Yaquina

Bainbridge Island, WA 98110

176 Winslow Way E

Burlingame, Frank & Joanne

5,663

0.13

62

92

$

26,298.95

10

262502-3-069-2007

Miller, Earl & Linda

205 Ludlow Bay Rd

Port Ludlow, WA 98365

156 Winslow Way E

Miller, Earl & Linda

19,166

0.44

81

302

$

47,268.11

11

262502-3-072-2002

Miller, Earl & Linda

205 Ludlow Bay Rd

Port Ludlow, WA 98365

106 Madison Ave N

Miller, Earl & Linda

13,939

0.32

120

115

$

51,477.94

12

262502-3-073-2001

IKON INVESTMENTS INC

8725 Sportsman Club Rd NE

Bainbridge Island, WA 98110

101 Madison Ave S

Lubovich

5,663

0.13

35

160

$

14,859.41

13

262502-3-024-2001

East Winslow Property, LLC

205 Ludlow Bay Rd

Port Ludlow, WA 98365

119 Winslow Way E

Miller, Earl & Linda

8,712

0.2

90

160

$

47,228.11

14

262502-3-074-2000

McCrary Frank Ronald

19136 Viking Way NW

Poulsbo, WA 98370

155 Winslow Way E

McCrary Frank Ronald

18,731

0.43

120

160

$

68,607.26

15

262502-3-077-2007

McCrary Frank Ronald

19136 Viking Way NW

Poulsbo, WA 98370

191 Winslow Way E

McCrary Frank Ronald

10,019

0.23

63

160

$

36,078.56

16

262502-3-116-2000

Washington Mutual Bank

PO BOX 7788

Newport Beach, CA 92658

231 Winslow Way E

Washington Mutual Bank

14,375

0.33

92

150

$

43,448.26

17

262502-3-081-2001

American Marine Bank

PO BOX 10788

Bainbridge Island, WA 98110

249 Winslow Way E

Rodac

41,382

0.95

100

295

$

69,937.20

18

262502-3-082-2000

Town & Country Market, Inc.

2208 NW Market #507

Seattle, WA 98107

256 Winslow Way E

Town & Country Market, Inc.

14,810

0.34

100

150

$

48,828.05

19

262502-3-084-2008

Town & Country Market, Inc.

2208 NW Market #507

Seattle, WA 98107

343 Winslow Way E

Town & Country Market, Inc.

48,787

1.12

311

150

$

125,714.97

20

4114-001-001-0002

Town & Country Market, Inc.

2208 NW Market #507

Seattle, WA 98107

Parking Lot

Town & Country Market, Inc.

58,370

1.34

372

188

$

41,168.35

21

262502-3-085-2007

Bainbridge Island, WA 98110

393 Winslow Way E

0.21

65

140

$

28,988.84

262502-3-083-2009

Bainbridge Island, WA 98110

295 Winslow Way E

American Marine Bank Trust Dept. Christian Science of Bainbridge Island

9,148

22

American Marine Bank Trust Dept. PO BOX 10788 Christian Science of Bainbridge Island PO BOX 10488

0.02

25

40

871

Not Assessed

TOTAL ASSESSED $ 1,000,000.01

City of Bainbridge Island DEPARTMENT OF FINANCE AND ADMINISTRATIVE SERVICES

31

MEMORANDUM TO:

City Manager, Mark Dombroski City Councilmembers

FROM:

Director of Finance & Administrative Services, Elray Konkel

DATE:

July 29, 2009

RE:

Preliminary Monthly Financial Update, through June 30, 2009:

This report and the attached charts and supporting schedules provide a financial update and overview representing the preliminary financial position of the City through June 30, 2009. Management reports the status of City operations under the following categories: CASH Tax Supported Funds Cash balances in tax-supported funds (excluding special revenue funds) decreased by $.86ml from $2.81ml to $1.95ml as June is historically the lowest month of the year for inflows. There is continued restraint in operating expenditures but June reports show scheduled debt service and capital projects of $.7ml. The tax supported month end cash balance is augmented by $.52ml in reconciling items resulting in a bank balance of $2.47ml. Utility Funds Cash balances in utility funds decreased by $1.09ml from $4.00ml to $2.91ml with normal monthly receipts offset by scheduled Wastewater Treatment Plant related payments. Balances in Water and SSWM are expected to be maintained in future months with receipts but the Sewer construction activity and scheduled debt service in June will significantly depleted cash in that fund by the end of the month. An interfund loan from the Water Fund of an amount not to exceed $3ml was passed by the City Council on May 13, 2009 to supplement the Sewer Fund until legal issues are addressed and permanent financing can be obtained to finish the Waste Water Treatment Plant project. At month end, it was necessary to draw $.825ml on that loan to maintain positive cash flows for the Sewer Fund. The utility fund month end cash balance is augmented by $.20ml in reconciling items resulting in a bank balance of $3.11ml. REVENUES Tax Supported Funds 2009 revenues of the tax-supported funds while showing continued weakness across the board are still exceeding cash flow assumptions for the first half of the 280 MADISON AVENUE NORTH BAINBRIDGE ISLAND, WA 98110-1812 PHONE: (206) 780-8619 FAX: (206) 780-8599 EMAIL: [email protected] www.ci.bainbridge-isl.wa.us

32

year and when compared to the January and April reductions as approved by the City Council. Lower than expected Sales Tax revenues for the first 6 months are offset by higher than projected Building and Development Services fund revenues. Property tax receipts through June are also not showing the projected declines but we will continue to monitor the major revenue categories closely as well as the overall revenue picture that continues to be positive. Revenue projections and the revised 2009 Budget for revenues in the charts reflect the January and April reductions. Revenues, year to date, show a year over year decline of only $.16ml further exhibiting stabilization. Utility Funds Normal utility receipts brought revenues for the combined utilities to $4.07ml for year to date figures. Utility Revenues year to date for 2009 are $.49ml ahead of 2008. Water utility connection fees continue to underperform due to low levels of development while Sewer and Stormwater connections are tracking budget on an annualized basis. OPERATING EXPENDITURES Tax Supported Funds There is continued restraint in operating expenditures reflected by salary and benefits clearly $.27ml less than January of this year. June reports show scheduled debt service and capital projects of $.7ml. Tax supported operating expenditures of $9.46ml for the period including encumbrances of $1.61ml are tracking at 56.1% of the revised budget and 46.55% without encumbrances. The Executive Department has instituted City Council approved reductions in annual budgeted operating expenditures for the year but the full results of staff reductions are only now being recognized and will continue over the months following. Year over year the operating actual expenditures have decreased $1.74ml for the first half of the year. The as reduced budgeted operating expenses for 2009 are $16.9ml versus $20.6 for 2008 (also as revised), a $3.7ml reduction. Utility Funds Operating expenditures of the Utility funds are tracking at $3.21ml or 55.86% with encumbrances of $.33ml or $2.88ml and 50.18% without. Continued heavy workloads and shifting of labor resources from the tax supported funds to maintain and support required utility work brought salaries and benefits in at 61.2% of budget. Considerable savings in Supplies and Services and Charges offset this, which brings overall operating expenditures in line with budget. CAPITAL/DEBT SERVICE EXPENSE Tax Supported Funds Capital projects are continuing slowly but with the receipt of the first half of the year in property taxes, they are expected to pick up in the summer months. Capital expense through June was $2.60ml with $2.06ml of that encumbered.

33

Debt service through June reflects a refunding of $5.3ml but was otherwise as scheduled. The City will save more than $.116ml in each of 2009 and 2010 on the refunding. Debt Service Payments in June were $.43ml. Utility Funds Capital project expenditures recorded in the utilities funds continued strong through June at $6ml with $3.8 of that encumbered predominately in connection with the Waste Water Treatment Plant. Construction expense for the Plant will continue to run from $.15ml to $.5 a month through 2009. Scheduled debt service payments in the utility funds in June were $.81ml. DEBT/FINANCIAL MARKETS As of July 29, 2009 the yield for a 20-year, triple-A rated, tax-exempt general obligation bond is 4.44%, down .05% from one month ago and down .51% from 4.95% 6-months ago (Bloomberg online, July 29, 2009). In September of 2008, COBI issued 20-year capital bonds with an overall yield of 4.46%. In March of 2009, the City refunded $5.3ml of its 1998 LTGO bonds, which financed City Hall and other street improvements for a savings of $.116ml in 2009, and $.116ml in 2010. The Sewer Utility expects to issue $6.0ml in Bonds/Notes later in the year to complete funding for the Waste Water Treatment Plant. Legal concerns have necessitated a delay in issuing a 1-3 year bridge loan or bond anticipation note option for the project. On May 13, City Council approved an interfund loan from the Water Fund to the Sewer Fund in an amount not to exceed $3ml, which as of the date of this report has $1m drawn upon. AUTHORIZED POSITIONS/VACANCIES The City currently has 127.47 FTEs and 22 vacant positions. Of the 22 vacant SRVLWLRQVRIWKHPDUH³RQKROG´ZLWKDQLQWHQWLRQWRILOODVIXQGLQJLQFUHDVHV. 11 RIWKHSRVLWLRQVDUH³XQIXQGHG´GXHWRDUHGXFWLRQLQIRUFHDQGPD\EHUHLQVWDWHG at a later time as need arises. 2 positions are being recruited at this time. The City Engineer, who had also taken on a portion of the Public Works Director duties, resigned in July. His resignation has created the need for restructuring the management of Public Works and assigning those duties on an interim basis. The Public Works Deputy Director ± Operations & Maintenance will now be the interim Public Works Director. The PCD Deputy Director will now be the interim City Engineer and the Water Resources Manager will be taking on the day-to-day management of the division in a temporary position as the Public Works Manager. The City will be conducting a recruitment for a new Public Works Director immediately. Once the Director his hired we will begin the search for a new Engineering Manager/City Engineer. After research and discussion, it was deemed unnecessary to have a separate City Engineer position. The decision was to combine the City Engineer duties at the management level rather than at the Director level. This allows the Director recruitment to be broader as the PE requirement will be removed. The City has moved forward with filling the Senior Police Clerk and plan on having the new employee in place by August 17. This decision was based on the need to have backup for legally required report transmission that come from the police

34

and proper coverage of the Police front desk. Previously parking enforcement was used as back-up at the front desk as needed and with the reduction of parking enforcement from 1.5 employees to .5 employees this has caused a gap in coverage. ECONOMIC OUTLOOK Much talk has been made recently on the economy and a catch phase has GHYHORSHG ³JUHHQ VKRRWV RI UHFRYHU\´ WR GHVFULEH VRPH SRVLWLYH PRYHPHQW LQ certain economic indictors and activities. Some may wish to interpret the data in such a way, but the reality in Puget Sound is there is still plenty to worry about. According to Conway Pedersen Economics, a regional firm specializing in Puget 6RXQG HFRQRPLFV ³the mixed performance of the leading index components in recent months is encouraging. No individual component is free falling. Manufacturing hours have climbed three months in a row and the interest rate spread has widened in each of the last five months. At some point, a sustained rise in a majority of the components will signal that an economic recovery is imminent. On the other hand, as mentioned in the June newsletter, the regional economy is not expected to begin a recovery until the second quarter of next year, which means that, based on past patterns, we would not expect the leading index to move consistently higher until late this year.´ (Puget Sound Economic Forecaster Monthly Leading Index, Conway Pedersen Economics, July 13, 2009) ³Another interpretation of the positive movement of the leading index in April and May is that the recovery will come sooner than expected. But considering that we have only two advancements in the bag and that monthly economic data are highly volatile, this explanation seems a bit of a stretch at this point. Two more monthly gains in the leading index would make a much more compelling case. Stay tuned.´(Puget Sound Economic Forecaster Monthly Leading Index, Conway Pedersen Economics, July 13, 2009) Because the Bainbridge Island economy is so dependent in real estate and development, it is important to keep tabs on where the housing market is going. Since the current economic crisis was precipitated by the housing bubble, we should expect little improvement until the housing market stabilizes, according to Conway Pedersen Economics. ³If that is correct, we may be witnessing the first signs of the regional economic recovery. Over the three-month period ending in May, closed home sales increased at a 28.9 percent annual rate, while residential building permits rose at a 48.9 percent rate. Home prices fell at a 19.9 percent rate between February and May but increased at a 15.3 percent rate between March and May. More specifically, the average house price, after dropping from $368,600 in February to $341,500 in March, rose to $350,200 in May. It is too early to conclude that the housing market has found its way back, especially considering the extremely low volume of home sales and housing permits at the present time, but these are the kind of numbers that one would expect to see around the turning point.´ (Puget Sound Economic Forecaster Monthly Leading Index, Conway Pedersen Economics, July 13, 2009)

35

³If the housing market is in fact on the upswing, it is just the first step in what is likely to be a drawn-out recovery. It will take another few months before regional production begins to expand again and even longer before there is job growth. Our current outlook calls for the Puget Sound housing market to improve, though not spectacularly, in the second half of 2009. On the other hand, regional employment will not bottom out²and the unemployment rate will not top out² until the first quarter of 2010.´ (Puget Sound Economic Forecaster Monthly Leading Index, Conway Pedersen Economics, July 13, 2009) Information from Washington State supports the opinion of Conway Pedersen Economics. The SWDWH¶VUHFHQWUHOHDVHVWDWHG³The tentativeness in the national economic recovery during the last month is not reflected in Washington data. Initial jobless claims are trending downward, and payroll employment registered a second month of moderate decline, providing more evidence that the free-fall phase is over. Housing permits too, came in ahead of our June forecast. The only discordant note was a modest decline in our state population growth.´ (Washington State Economic and Revenue Forecast Council, Economic and Revenue Update, July 13, 2009). With these mixed signals and a lack of absolutes in whether the crisis is bottoming out, rebounding or just bouncing around, we should be cautioned in our forecasting and continue to watch what is happening around us.

Attachments Attached are the following supporting charts and schedules: Tax Supported Funds/ Utility Funds Charts o Cash balances current month end, prior month end and yearend budgetary reserves versus estimated year end estimated cash. o Revenues, current month and year to date, prior year to date, and year-end budget as revised. o Operating and Capital Expenditures, current year to date, prior year to date, and year-end budget as revised. Cash Balances Bank and Book current month and prior months Revenue Report - Budget to Actual Summary Expenditure Report All Departments Summary Expenditure Report Tax Supported Funds Summary Expenditure Report Utility Funds July Cash Flows (including actuals of June) Bloomberg.com report on Municipal Bond Market July 29, 2009 Bloomburg.com report on Key Rates July 29, 2009 Siebert Brandford Shank, July 28³8SGDWHRQ&XUUHQW &RQGLWLRQVLQWKH&UHGLW0DUNHWV´ State of Washington, ³Economic & Revenue Update´-Xly 13, 2009 Windermere Realty report through June, 2009

36

7KHDERYHILQDQFLDOUHSRUWVZLOOEHSRVWHGWRWKH&LW\¶V:HEVLWHRUDUHDYDLODEOHIURPWKH Finance and Administrative Services Department.

In addition to the above listed reports, WKH&LW\¶V:HEVLWHZLOOLQFOXGH the following month end reports: Consolidated Balance Sheet all funds Combined Tax Supported Funds Balance Sheet Combined Utility Funds Balance Sheet Individual Fund Balance Sheets If you have any questions, please give me a call.

7/30/2009

May-09

$1.95

$1.00

$1.20

Jun-08

$18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 $9.46

Jun-09

$16.0

$16.9

2009 Budget Adjusted

Jun-09

Estimated YE Expense

Page 1 of 2

2009 Budget Adjusted

Tax Supported YTD Operating Expenses

$11.20

Jun-08

Tax Supported Month to Date Revenues

$10.38

2009 Budget Adjusted

$21.9

Jun-08

Jun-09

2009 Budget Adjusted

Tax Supported Year to Date Revenues

$10.56

Jun-09

Tax Supported YTD Capital/Debt Service Expenses

$9.51

$11.98

Monthly Financial Summary June 2009

Notes: 1. Based upon unaudited financial statements for June, 2009 2. Figures reflect amounts prior to year-end accruals and adjustments 3. Budgetary reserves do not represent separate fund balances 4. Operating and capital expenses include encumbrances 5. Seasonality may skew month to date figures when compared to year end figures

$0.00

$5.00

$5.00

$0.00

$10.00

$10.00

$25.00

$15.00

$21.9

Estimated YE Cash

$15.00

$1.03

Budgetary Reserves

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$20.00

$1.91

Jun-09

Tax Supported Cash/Book Balance

$2.81

$20.00

$25.00

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

CITY OF BAINBRIDGE ISLAND MONTHLY FINANCIAL SUMMARY (in millions of $) For the month ending June 30, 2009

37

7/30/2009

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

Jun-08

$10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00

$4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00

Jun-09

Jun-09

$0.62

$8.9

Budgetary Reserves

$2.75

$5.8

2009 Budget Adjusted

Jun-08

$4.07

2009 Budget Adjusted

$8.9

Jun-09

2009 Budget Adjusted

Utility Year to Date Revenues

$3.58

Jun-09

Utility YTD Capital/Debt Service Expenses

$8.24

$14.28

Monthly Financial Summary June 2009

Notes: 1. Based upon unaudited financial statements for June, 2009 2. Figures reflect amounts prior to year-end accruals and adjustments 3. Budgetary reserves represent separate fund balances 4. Operating and capital expenses do not include encumbrances 5. Seasonality may skew month to date figures when compared to year end figures 6. Results are reported on a consolidated basis for water, sewer and storm water utilities

$10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

Page 2 of 2

Estimated YE Expense

$5.8

2009 Budget Adjusted

Utility YTD Operating Expenses

$3.21

Jun-09

Utility Month to Date Revenues

Jun-08

$2.99

$2.91

Utility Cash/Book Balance

$1.00

May-09

$4.00

CITY OF BAINBRIDGE ISLAND MONTHLY FINANCIAL SUMMARY (in millions of $) For the month ending June 30, 2009

38

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52

53

BLOOMBERG Government Bonds

U.S. Treasuries

COUPON

MATURITY DATE

CURRENT PRICE/YIELD

PRICE/YIELD CHANGE

TIME

3-MONTH

0.000

10/29/2009

0.17 / .18

-0.002 / -.002

20:00

6-MONTH

0.000

01/28/2010

0.25 / .25

0 / -.000

20:31

12-MONTH

0.000

07/29/2010

0.46 / .47

-0.009 / -.009

20:22

2-YEAR

1.000

07/31/2011

99-20½ / 1.18

-0-01½ / .024

20:36

3-YEAR

1.500

07/15/2012

99-15 / 1.68

0-00 / .000

20:45

5-YEAR

2.625

07/31/2014

99-29½ / 2.64

0-03+ / -.021

20:45

7-YEAR

3.250

07/31/2016

100-00½ / 3.51

98-13½ / 3.506

20:00

10-YEAR

3.125

05/15/2019

95-30+ / 3.62

0-10 / -.039

20:53

30-YEAR

4.250

05/15/2039

97-04+ / 4.42

1-11½ / -.085

20:16

COUPON

MATURITY DATE

CURRENT PRICE/YIELD

PRICE/YIELD CHANGE

TIME

5-YEAR

1.250

04/15/2014

100-11 / 1.17

0-09 / -.065

20:35

10-YEAR

1.875

07/15/2019

101-12 / 1.72

0-26 / -.091

07/30

20-YEAR

2.500

01/15/2029

104-05 / 2.24

1-17 / -.096

20:32

30-YEAR

3.375

04/15/2032

122-09 / 2.13

1-17 / -.076

20:32

INFLATION INDEXED TREASURY

Municipal Bonds NATIONAL MUNICIPAL BOND YIELDS: TRIPLE-A RATED, TAX-EXEMPT GENERAL OBLIGATION BONDS CURRENT YIELD

PREVIOUS YIELD

CHANGE IN YIELD

28% EQ YIELD

1 WEEK PRIOR YIELD

1 MONTH PRIOR YIELD

6 MONTH PRIOR YIELD

2-YEAR

0.77%

0.81%

-0.04%

1.07%

0.83%

0.97%

1.21%

5-YEAR

1.84%

1.87%

-0.03%

2.56%

1.87%

2.18%

1.83%

7-YEAR

2.44%

2.43%

0.01%

3.39%

2.43%

2.78%

2.30%

10-YEAR

3.32%

3.32%

0.00%

4.61%

3.28%

3.52%

3.27%

15-YEAR

4.04%

4.05%

-0.01%

5.61%

4.02%

4.10%

4.35%

20-YEAR

4.42%

4.43%

-0.01%

6.14%

4.39%

4.48%

4.92%

30-YEAR

4.84%

4.84%

0.00%

6.72%

4.82%

4.85%

5.02%

As of July 1st 2009 Bloomberg L.P. will no longer be designated a Nationally Recognized Municipal Securities Information Repository (NRMSIR). The Municipal Securities Rulemaking Board (MSRB) in conjunction with the Securities and Exchange Commission is eliminating the role of the repository and forming a single central disclosure hub that will be run by the MSRB. Please visit: http://emma.msrb.org to access the new disclosure system.

Contact Information Muni Material Events

54 BLOOMBERG Key Rates CURRENT

1 MONTH PRIOR

3 MONTH PRIOR

6 MONTH PRIOR

1 YEAR PRIOR

FED FUNDS RATE

.15

.31

.21

.12

1.75

FED RESERVE TARGET RATE

.25

.25

.25

.25

2.00

PRIME RATE

3.25

3.25

3.25

3.25

5.00

US UNEMPLOYMENT RATE

9.50

9.40

8.50

7.20

5.60

1-MONTH LIBOR

.28

.31

.41

.42

2.46

3-MONTH LIBOR

.48

.60

1.02

1.18

2.80

Mortgage* (National Average)

CURRENT

1 MONTH PRIOR

3 MONTH PRIOR

6 MONTH PRIOR

1 YEAR PRIOR

30-YEAR FIXED

5.39

5.37

4.87

5.33

6.41

15-YEAR FIXED

4.84

4.84

4.62

5.06

5.95

5/1-YEAR ARM

4.58

4.79

4.75

5.59

5.87

1-YEAR ARM

3.98

4.05

4.71

5.4

5.71

30-YEAR FIXED JUMBO

6.45

7.1

6.36

6.88

7.57

15-YEAR FIXED JUMBO

5.98

6.67

5.86

6.14

6.89

5/1-YEAR ARM JUMBO

5.27

5.94

5.27

5.97

6.33

*Rates may include points.

CDs (National Average)

CURRENT

1 MONTH PRIOR

3 MONTH PRIOR

6 MONTH PRIOR

1 YEAR PRIOR

5-YEAR

2.65

2.64

2.72

2.82

4.2

2-YEAR

1.96

2.02

2.19

2.41

3.8

1-YEAR

1.66

1.76

2.02

2.31

3.62

6-MONTH

1.29

1.34

1.59

1.88

3.16

1-MONTH

0.47

0.47

0.72

0.9

1.94

5-YEAR JUMBO

2.78

2.76

2.91

2.98

4.35

2-YEAR JUMBO

1.99

2.05

2.28

2.52

3.9

1-YEAR JUMBO

1.7

1.77

2.1

2.43

3.72

6-MONTH JUMBO

1.34

1.37

1.63

2.02

3.24

1-MONTH JUMBO

0.48

0.48

0.71

0.91

1.95

Unless indicated otherwise: intraday data is at least 15 minutes delayed; mutual fund NAVs are updated at the close of every market day; all prices are in the local currency; Time is ET.

55 Update on Current Conditions in the Credit Markets (July 28, 2009)

Macroeconomic Analysis ƒ ƒ

The New York Federal Reserve said on Friday it bought $3.235 billion of U.S. agency debt with maturities ranging from August 2011 to June 2013. The Reuters/University of Michigan Surveys of Consumers said its final July consumer sentiment reading fell to 66.0 from June's 70.8, though it was slightly higher than economists' median expectation for a reading of 65.0, according to a Reuters poll.

Recent Developments with the Monoline Insurers Moody's

AMBAC Ba3 developing outlook ASSURED Aa2 negative watch BHAC Aa1 stable outlook CIFG Ba3 developing outlook FGIC rating withdrawn Aa3 negative watch FSA MIAC* NATIONAL** Baa1 developing outlook RADIAN Ba1 stable outlook SYNCORA*** Ca developing outlook * Backed by Macquarie Group and Citadel Investment Group hedge fund **Formerly MBIA ***Formerly XL Capital

4/13/2009 5/20/2009 4/8/2009 1/22/2009 4/14/2009 5/20/2009

S&P

BBB negative watch AAA negative outlook AAA negative outlook CC negative outlook rating withdrawn AAA negative outlook

6/25/2009 A 3/12/2009 BBB3/9/2009 CC

developing outlook negative watch negative outlook

6/24/2009 7/1/2009 3/24/2009 6/15/2009 4/22/2009 4/21/2009

Fitch

rating withdrawn AA not rated rating withdrawn rating withdrawn AA+

evolving watch

6/26/2008 5/4/2009

negative watch

10/21/2008 11/24/2008 5/11/2009

6/5/2009 rating withdrawn 4/8/2009 rating withdrawn 1/29/2009 rating withdrawn

6/26/2008 5/2/2008 9/5/2008

Municipal Fixed Rate Market Important Market Observations: New Historic Wides in MMD Scale Since 2001 ƒ The spread between 20-30 year MMD is now 54 basis points – an all-time high since 2001. The average since 2001 is 17.64 basis points. ƒ The spread between 20-25 year MMD is now 41 basis points– an all-time high since 2001. The average since 2001 is 13.63 basis points. ƒ The spread between 15-30 year MMD is now 103 basis points– an all-time high since 2001. The average since 2001 is 46.38 basis points. ƒ Treasuries for the week saw heavy selling with 30-year bonds losing over 5 points in value and 10-year bonds trading lower by +/- 3 points. ƒ The front end of the curve continued to show strength while intermediate and long bonds came under pressure. 10year MMD ended the week down 1 basis point at 3.00% and 30-year MMD ended the week up 6 basis points at 4.70%. That said our view is that municipal bond prices were 5-10 basis points cheaper than the week prior. Maturity 1-year 5-year 10-year 15-year 20-year 30-year

ƒ

MMD (Close 7/24) 0.42 1.75 3.00 3.68 4.16 4.70

Minimum 51.75 70.63 77.63 81.05 81.96 82.74

Since 7/1/2004 Maximum 257.58 229.46 190.45 215.36 221.82 212.27

MMD – US Treasury Ratio Since 1/2/2008 Average Average 83.62 100.90 87.76 108.32 90.13 105.12 97.77 119.11 100.95 123.35 101.71 119.05

Current (7/24) 87.87 68.90 81.74 101.49 105.09 102.64

Last Update (7/17) 91.30 72.54 83.94 97.09 103.25 103.83

Quality spreads remained stable on the week ended 7/24, and with this week’s calendar at $5.6 billion, we expect these spreads to hold steady. ƒ This week’s preliminary calendar includes $495 million City of Houston Public Improvement bonds (SBS is CM), $330 million of Metropolitan Water District of Southern California bonds (SBS is CM), $223 million of Massachusetts Water Pollution Abatement Trust SRF bonds (SBS is CM), $194 million of City of Oakland bonds (SBS is CM). Build America Bonds (“BABs”) ƒ California BABs continued to perform very well this week with spreads narrowing into the +301 range from +330 last week.

56 ƒ

The following are the Build America Bond secondary market spreads as of Friday (7/24): Transaction Sale Date Ratings Selected Maturity Call Provisions Initial Taxable Yield (%) Initial Spread to Treasury (bps) Current Spread to Treasury (bps) Initial Tax-Exempt Equivalent Yield(%)1 Initial Spread to MMD (bps)1 Current Spread to MMD (bps)1 1Tax-Exempt

State of California 4/22/2009 A2/A/A 2039 Non-Callable 7.43 365 +301 4.83 46 26

University of Texas 6/10/2009 Aaa/AAA/AAA 2041 10-year Par Call 6.275 +153 +160 4.08 (64) (60)

Dallas Area Rapid Transit 6/16/2009 Aa3/AAA/NR 2034 10-year Par Call 6.249 175 +192 4.06 (59) (45)

Equivalent Yield takes into account the 35% interest-cost rebate from the U.S. Treasury

Visible Supply ƒ 30-day tax-exempt visible supply is approximately $11.8 billion. ƒ The maximum visible supply over the last 60 days was $20.4 billion, while the minimum was $9.2 billion. The average forward volume over the same period totaled $13.6 billion.

Municipal Variable Rate Market ƒ

SIFMA reset at a 0.37%, approximately 131.63% on a day count adjusted basis of 1-month LIBOR (0.285%) and 74.47% on a day count adjusted basis of 3-month LIBOR (0.504%).

Derivatives Market ƒ Municipal Swap rates were unchanged to up 6 basis points along the curve as of Monday’s close since Monday, July 20th. 20-Year SIFMA swap rates were up by 6 basis points to 3.640% from 3.584% over the same period.

ƒ Ratio (“tax”) risk value decreased a bit over the week with 20-year SIFMA ratios (SIFMA swap rates divided by LIBOR swap rates) down to 84.50% from 85.75% last Monday. In the current market swap dealers are willing to pay 41 bps above 70% of LIBOR in return for receiving SIFMA for 20 years versus 43 bps a week ago. On $100 million of notional, the fixed spread translates to $410 thousand of positive cash flow assuming that SIFMA averages 70% of LIBOR over the life of the trade.

ƒ Option value decreased slightly over the week with volatility on an option to enter into a 15-year swap, 5 years from today decreasing to 21.920% from 22.245%. Option value is still substantial and issuers may pick-up significant value by selling options on entering into swaps. Disclaimer

All information and opinions expressed in this document were obtained from sources believed to be reliable and in good faith, but no representation or warranty, express or implied, is made as to its accuracy or completeness. All information and opinions as well as any prices indicated are currently only as of the date of this report, and are subject to change without notice. Any estimations or projections as to events that may occur in the future (including projections of market performance) are based upon the best judgment of Siebert Brandford Shank & Co., L.L.C. ("SBS") from publicly available information as of the date of this report. There is no guarantee that any of these estimates or projections will be achieved. SBS expressly disclaims any and all liability relating or resulting from the use of this report.

ECONOMIC & REVENUE UPDATE

57

___________________________________________________________________ 13 JULY 2009 The Fed balance sheet has grown significantly

U.S.

ƒ

ƒ

The economy is passing through an early summer lull, as the winds that were lifting it toward recovery appear to be flagging. Yet, this is not something that was unanticipated in our June forecast. It is normal for an economy headed for a trough after a long and hard recession, to pause for breath. We continue to believe that the recession will bottom out by the third quarter of this year, followed by a slow U-shaped recovery. There is a considerable amount of stimulus in the pipeline that has yet to work its way through the system and many of the “green shoots” we noticed in the spring remain green. Whether or not June will turn out to be the pause that refreshes, or the first sign of another leg down, only time will tell. We believe it is likely be the former. Both equity and bond markets are looking for direction. Expectations of a recovery have been clouded by doubt. Both the Dow and the S&P 500 are down about 7% from their peak on June 12, but are still 24% and 30% higher, respectively, from their March 9 low. Investors appear to be anxious prior to the second quarter earnings season, and much depends on the forecasts of future earnings that companies provide at that time. The bond market sell-off in late May that saw the 10-year treasury yield rise by close to 40 basis points has given way to a rally. Here too, expectations of a quick recovery have been overtaken by doubts about the strength of the recovery. The 10-year treasury’s yields have now dropped over 60 basis points since June 10. Economic reports on employment have disappointed. In June the economy shed 467,000 jobs, which even after accounting for the reductions in temporary census workers was higher than May’s revised 322,000. The trend in job losses, however, continues to slow. Even June’s disappointing number was

2,500

2,000

USD Billions

ƒ

1,500 Fed Stimulus: USD 1 trillion 1,000

500

0 2007

2008

2009

much better than the first quarter’s average monthly loss of 691,000 jobs.

ƒ

ƒ

Despite investor skittishness and expectations getting ahead of reality, the economy remains on track for a recession trough by the third quarter. Of the USD 787 billion federal fiscal stimulus, only USD 56 billion have been disbursed through the second quarter. It is expected that another USD 200 billion will be spent in the third quarter. The Federal Reserve has increased the size of its balance sheet by USD 1 trillion (see figure), effectively pumping that amount into the economy through innovative quantitative easing. This too is working its way through the system. There are more reasons to be optimistic. Trade data for May provided an upside surprise. U.S. exports increased 1.6% (SA) while imports fell by 0.6%. Consequently, the trade deficit fell from April’s USD 28.8 billion to USD 26 billion, its lowest in a decade. This will give a boost to second quarter GDP, which may well turn out to be stronger than we had anticipated in our June forecast. Also with both Chrysler and GM out of bankruptcy, published automotive production plans call for a sharp increase in production in that industry starting in July. This is further borne out by increases in truck tonnage indices in May – an indication that parts and supplies are being shipped to plants.

Washington State Economic and Revenue Forecast Council ¸ 360-570-6100 ¸ www.erfc.wa.gov

ECONOMIC & REVENUE UPDATE

58

WASHINGTON

ƒ

ƒ

ƒ

The tentativeness in the national economic recovery during the last month is not reflected in Washington data. Initial jobless claims are trending downward, and payroll employment registered a second month of moderate decline, providing more evidence that the free-fall phase is over. Housing permits too, came in ahead of our June forecast. The only discordant note was a modest decline in our state population growth. Washington weekly initial claims for unemployment insurance have resumed their downward trend in June. For the week ending July 4, the 4-week moving average was at its lowest level since February 14th. We continue to expect that Washington employment will bottom out in the fourth quarter of this year, at about the same time the U.S. job market hits bottom. Employment growth in the state is expected to turn positive in 2010, very gradually at first, gaining strength later in the year and in 2011. Payroll employment in Washington registered a second month of relatively moderate job loss, losing 6,700 jobs in May following a decline of 3,200 in April. This is a significant improvement over the previous five months when employment fell an average of 18,200 per month, excluding the impact of the Boeing strike. The May job cuts were mostly in the goods producing sectors. Construction continued to be especially hard hit, losing 3,100 jobs. Manufacturing employment was down 1,600 of which 100 were in aerospace. We continue to believe that there will be fewer and fewer job cuts during the second half of the year. The state unemployment rate, however, rose from 9.0% in April to 9.4% in May, matching the U.S. unemployment rate for May. Building permits issued in Washington increased to a seasonally adjusted annual rate of 15,600 in May from 12,100 in April. This was better than we had expected in our June forecast. Both single-family and multi-family permits

June 2009

ƒ

ƒ

Home prices in Seattle continue to decline but at a slowing rate. Although it was widely reported that the S&P CaseShiller index showed home prices rising in Seattle and in seven other metropolitan areas in April, this was a seasonal illusion. Home prices normally go up in the spring and summer and down in the fall and winter. On a seasonally adjusted basis, home prices fell in 16 of the 20 cities tracked by the Case-Shiller index, including Seattle. However, in every city but one the price fell less or rose more in April than in March. In Seattle the April decline was only 0.6% compared to an average of 2.3% per month during the previous five months. Washington’s population growth rate is slowing as a result of the recession. The Office of Financial Management (OFM) recently released a Washington Economy and housing weigh on WA population growth 2.5

2.0

Percent

ƒ

were up from April. Despite the improvement, however, housing activity remains very depressed. Multi-family construction, in particular, remains near all-time lows. Anecdotal evidence suggests that it is virtually impossible to get financing for multi-family housing projects. The pace of new housing construction is now well below the increase in demographic demand for housing. Once the economic recovery is in full swing by 2011, the excess housing stock will be largely absorbed, setting the stage for a recovery in housing construction.

1.5

1.0

0.5

0.0 2000

2002

2004

2006

2008

Page 2

ECONOMIC & REVENUE UPDATE

59

WASHINGTON (Continued)

growth is both good news and bad news for the Washington economy. Population growth adds to the labor supply and to the demand for goods and services, including housing. Thus, a slowdown in population growth has a negative impact on aggregate economic activity. On the other hand, slower labor supply growth is good news for Washington’s unemployed, who will face less competition for jobs. Also, the unemployment rate will peak lower as a result of a slower growth in the labor force.

population estimate for April 1, 2009 putting the state’s population at 6,668,200, an increase of 80,600 (1.2 %) over the previous year. This is 20,100 (0.3%) less than we had expected in the June forecast. The state’s population grew 1.5% last year, down from 1.8% in 2007 and 1.9% in 2006 (see figure above). Difficulty selling one’s home depresses mobility, and slows inmigration. The slowdown in population

REVENUE COLLECTIONS

Revenue Act Collections*

Percent

(Year-over-Year Percent Change)

20

Total General Fund-State Revenues 15

ƒ ƒ

Major General Fund-State revenues for the June 11 – July 10, 2009 collection period were a relatively small $2.0 million (0.2%) lower than our June forecast.

ƒ

ƒ

ƒ ƒ

5 0

1

-5

The cumulative year-over-year decline in total General Fund-State revenues is $1.37 billion (9.7%).

Revenue Act

ƒ

10

YoY % Change -10

Average Growth (12-mo. ma)

-15 -20 1996

1998

2000

2002

2004

2006

2008

*Growth adjusted for new legislation and unusually large assessment payments, refunds etc.

The revenue collections reported here are for the June 11 – July 10, 2009 collection period. This corresponds to economic activity in May 2009. Adjusted for special factors (large refunds in June 2008 and June 2009), collections in the current period are down 11.2% from their year-ago level (see figure). Unadjusted, the decline is 11.1%.

ƒ ƒ

Preliminary ERFC monthly estimates indicate retail sales tax collections are down 18.6% year-over-year, while B&O taxes managed a 1.0 percent gain. Preliminary tax payments from electronic filers who also paid in the June 11 – July 10 collection period of last year were down 13.6 % year-over-year.

Two large refunds in May 2009 were not reported in last month’s collection report. Taking these refunds into account, the adjusted year-over-year decline in collections for the May 11 – June 10, 2009 collection period was 13.0 percent. The adjusted decline was previously reported as 13.7 percent.



Payments in the retail trade sector were down 9.6%. The greatest drops were in furniture and home furnishings (-20.1%); motor vehicles and parts (- 19.4%); gas stations and convenience stores (-17.4%); and building materials and garden equipment (11.5%)

Collections for this period are $7.4 million (0.9%) above the June 2009 forecast.



Payments in two major retail trade sectors showed a year-over-year increase: drug and health stores (+5.8%) and food and beverage stores (+3.0 %).

Cumulatively, collections are down $1.08 billion (9.4%) from FY 2008.

June 2009

Page 3

ECONOMIC & REVENUE UPDATE

60

Revenue Act (Continued)

Payments in non-retail trade sectors were down 16.1% year-over-year.



Payments in the construction sector were down 21.4%, while those in the manufacturing sector were down 39.1%.

Surprising Strength in June Real Estate Activity Washington Taxable Real Estate Excise Tax Activity, Seasonally Adjusted, Jan'90-Jun'09 $Billions 10 9 8 7 6 5

Non-Revenue Act

ƒ ƒ ƒ ƒ ƒ

ƒ ƒ

ƒ

June collections are down 11.0% yearover-year. Collections were $9.0 million (3.7%) below the June forecast.

4 3 2 1 0 1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Most of the shortfall was due to property tax receipts (state school levy), which came in $9.4 million (5.7%) below the June forecast. June taxable real estate activity showed surprising growth (see figure). Real estate excise tax came in $4.4million (14.3%) above the forecast. “Other” revenues came in $3.5 million (10.2%) below the forecast due mainly to more-than-forecasted reversals of previous transfers of unclaimed property into the General Fund. July 2008 - June 2009 total collections are $290.6 million (11.1%) below yearago levels. The year-over-year decline in nonRevenue Act collections is mostly due to real estate excise tax collections, which are down $274.2 million (41.3%) cumulatively from fiscal 2008. June Department of Licensing receipts were $358 thousand (5.7%) below the June forecast.

June 2009

Page 4

-

Jan.

488

Housing Starts (SAAR, mil.) 9.6

94.5 83.8

Broad Real USD Index** (Mar. 1973=100)

Federal Budget Deficit ($ bil.)*

-36.6

-36.6

-62.7

-26.1

761.8

192.8

95.8

0.30

2.87

-91.2

-28.5

954.1

192.3

101.1

0.22

2.82

8.5

-0.65

133.0

0.6

121.4

1.8

218.0

-0.4

212.7

-34.7

9.9

-47.5

521

40.8

36.3

-12.9

97.6

-5.5

Mar.

-120.0

-28.8

975.0

20.9

95.8

0.16

2.93

8.9

-0.52

132.5

0.5

121.5

1.9

218.6

-0.6

212.7

-35.8

9.3

-54.6

454

43.7

40.1

-13.0

96.9

-

Apr.

-145.9

-26.0

1,164.6

189.7

95.6

0.18

3.29

9.4

-0.32

132.2

0.1

121.5

1.8

218.9

-1.0

212.9

-30.5

9.9

-45.2

532

44.0

42.8

-13.9

95.8

-

May

-

1,258.9

94.3

-

0.18

3.72

9.5

-0.47

131.7

-29.2

9.7

47.0

44.8

-

Jun.

July 2009

**Weighted average of U.S. dollar foreign exchange values against currencies of major U.S. trading partners, Federal Reserve.

*Federal Fiscal Year 2008 runs from Oct. 1, 2007 to Sept. 30, 2008.

YTD Sum

US Trade Balance ($ bil.)

569.0

0.13

Yield on 3-Month Treasury Bill (percent)

FYTD sum

2.52

8.1

-0.68

-0.74

7.6

133.7

1.0

121.4

1.8

217.7

0.1

213.0

-40.6

9.1

-47.8

574

41.6

35.8

-11.5

99.4

-

Feb.

134.3

0.8

121.0

1.7

217.3

-0.2

212.2

-37.7

Yield on 10-Year Treasury Note (percent)

Unemployment Rate (SA, percent)

Monthly Change

Nonfarm Payroll Empl., e-o-p (SA, mil.)

Y/Y % Change

IPD for Consumption (2000=100)

Y/Y % Change

Core CPI (SA, 1982-84 = 100)

Y/Y % Change

CPI (SA, 1982-84 = 100)

Y/Y % Change

Light Motor Vehicle Sales (SAAR, mil.)

-54.9

42.9

ISM Non-Manuf. Index (50+ = growth)

Y/Y % Change

35.6

-11.0

100.2

2009

ISM Manufacturing Index (50+ = growth)

Y/Y % Change

Industrial Production (SA, 2002 = 100)

Real GDP (SAAR)

Key U.S. Economic Variables

-701.4

162.8

92.5

4.47

4.63

4.6

1.15

138.2

2.6

117.7

2.3

210.7

2.9

207.3

-2.3

16.2

-25.9

1,342

-

51.1

1.7

111.4

2.0

2007

Page 5

-695.9

436.3

88.7

1.39

3.67

5.8

-3.08

135.1

3.3

121.6

2.3

215.6

3.8

215.2

-18.5

13.2

-32.9

900

47.4

45.5

-2.0

109.2

1.1

2008

61

July 2009

*Percentage Change is Year-over-Year

Median Home Price ($000)

Personal Income (SAAR, $bil.)

Initial Unemployment Claims (SA, 000)

New Vehicle Registrations (SA, 000)

Avg. Hourly Earnings in Manuf.

Avg. Weekly Hours in Manuf. (SA)

WA Business Cycle Ind. (Trend=50)

WA Index of Leading Ind. (2004=100)

Housing Permits (SAAR, 000)

Other Indicators Seattle CPI (1982-84=100)

Change from Previous Month

All Other

Change from Previous Month

Software

Change from Previous Month

Aerospace

Change from Previous Month

Manufacturing

Change from Previous Month

Construction

Change from Previous Month (000)

Employment Total Nonfarm (SA, 000)

Key Washington Economic Variables

Jan.

-63.3%

-37.8%

-

-

76.2 89.5%

62.4 67.1%

13.8 -36.1%

15.0 -34.8%

23.0 9.4%

23.1 9.4%

42.5 -0.7%

43.4

-86.7%

-74.1% 3.3%

6.5

-9.0%

-5.5%

12.7

106.8

109.9

1.4%

12.1

224.7

-14.4

2,374.3

0.1

52.7

-0.5

84.8

-2.2

278.1

-3.7

179.1

-20.2

2,884.2

Feb.

19.2

-1.8

2,388.7

-0.4

52.6

-0.2

85.3

-4.4

280.3

-2.3

182.8

-8.9

2,904.4

2009

-13.7%

253.5

1.1%

276.4

89.7%

74.4

-44.0%

12.5

11.1%

23.6

-6.2%

40.8

-92.2%

3.5

-10.5%

105.2

-53.7%

14.1

-10.4

2,363.9

0.0

52.7

-0.5

84.3

-4.0

274.1

-5.4

173.7

-19.8

2,864.4

Mar.

-

74.2%

69.4

-39.3%

12.5

10.5%

23.5

-4.8%

41.5

-99.0%

0.4

-9.9%

106.1

-61.5%

12.1

1.2%

225.9

2.2

2,366.1

-0.5

52.2

-0.7

83.6

-3.1

271.0

-1.8

171.9

-3.2

2,861.2

Apr.

-

83.7%

75.9

-37.6%

12.3

10.0%

23.4

-3.5%

41.4

-102.4%

-1.0

-8.8%

106.5

-47.2%

15.6

-1.5

2,364.6

-0.5

51.7

-0.1

83.5

-1.6

269.4

-3.1

168.8

-6.7

2,854.5

May

-

65.1%

68.6

-37.3%

12.9

-

Jun.

2008

-18.7

2,390.5

4.6

53.0

2.6

85.5

-11.6

284.7

-24.2

185.1

-49.9

2,913.3

4.2%

306.4

8.1%

265.7

-0.8%

34.1

-1.2%

23.9

3.0%

20.5

3.3%

42.0

-0.9%

59.0

4.9%

115.7

-4.5%

45.6

3.9%

215.7

Page 6

-7.5%

283.4

4.3%

277.1

34.1%

45.7

-20.5%

19.0

2.4%

21.0

0.6%

42.2

-38.2%

36.4

-0.3%

115.4

-40.2%

27.3

4.2%

224.7

Annual Average

54.5

2,409.2

2.0

48.4

6.1

82.9

6.2

296.3

9.0

209.3

71.7

2,963.2

End-of-period

2007

62

-6.6

-1.8

1,577,175

NA

11,092

-38.6

180

-2.9

39,318

-27.6

1,508

-42.2

37,142

-69.8

72

5.4

611,756

-17.3

3,487

9.3

13,812

0.4

707,096

-37.0

10,319

13.7

973

14.1

28,969

4.7

40,891

-4.9

198,162

-5.1

579,492

-4.7

858,807

-2.5

1,565,903

Nov. 11 Dec. 10

-15.2

942,770

NA

0

3.1

213

472.6

5,652

NA

0

-48.7

26,829

-101.2

-40

-6.8

111,753

-5.9

3,527

-0.8

13,466

-16.9

161,188

2.4

10,945

3.6

860

-19.2

24,769

-33.5

28,556

-11.8

188,824

-14.8

527,414

-14.9

781,369

-15.2

942,557

2009 Dec. 11 Jan 10

-11.7

1,103,757

NA

0

35.9

242

-13.6

15,321

NA

0

-48.6

19,323

-108.1

59

5.1

-13,815

-11.8

4,153

4.4

18,972

-31.6

44,013

-16.0

9,887

15.7

859

-1.6

37,185

-8.7

45,661

-5.1

280,267

-13.2

685,642

-10.6

1,059,501

-11.7

1,103,514

Jan 11 Feb 10

-11.3

769,724

NA

0

4.3

263

-74.3

4,290

-35.9

1,001

-19.1

29,415

204.4

125

-16.1

-16,785

-7.6

3,498

7.9

12,126

-32.2

33,671

-13.2

11,025

-9.1

822

-12.4

33,398

-12.4

31,088

-12.8

173,954

-8.7

485,503

-10.1

735,791

-11.4

769,461

Feb 11 Mar 10

June 2009

Note: Italic figures refer to Year-over-Year percent change.

*** Detail may not add due to rounding. The GFS total in this report includes only collections from larger state agencies: the DOR, Lottery Commission and DOL.

**Monthly Revenues (month of beginning of collection period)

1,135,685

-10.8

NA

NA

948,119

0

4.5

0

324

404

3.0

-13.1

49,385

7.1

NA

NA

4,203

0

-40.7

-23.9

0

36,963

44,268

-35.8

58.5

2.9

132

6

24.3

0.8

9,434

-15,964

2.2

3.5

4,815

4,470

3.9

-17.1

12,282

14,432

-23.8

-19.3

113,011

51,415

-39.9

25.4

10,305

9,618

-33.0

4.9

1,006

832

-5.2

-14.9

27,174

25,313

-9.5

-2.1

41,442

42,199

-4.9

-6.0

267,263

208,562

-11.1

-5.3

675,162

-10.0

609,775

1,022,351

-6.6

896,300

1,135,361

-10.8

Oct 11 Nov. 10

947,715

2008 Sep 11 Oct 10

*Revenue Act components: ERFC preliminary estimates

Total General Fund-State***

Lottery**

Department of Licensing**

Other

Timber (state share)

Real Estate Excise

Estate

Property (State School Levy)

Cigarette

Liquor Sales/Liter

Non-Revenue Act**

Penalties and Interest

Tobacco Products Tax

Public Utility Tax

Use Tax

Business and Occupation Tax

Retail Sales Tax

Revenue Act

Department of Revenue-Total

Key Revenue Variables

-24.4

703,973

NA

0

-6.3

429

-97.9

887

NA

0

-56.3

19,815

-116.2

-65

-44.0

4,201

0.4

4,050

-1.7

11,408

-63.6

40,296

-128.7

-3,317

13.4

993

-5.4

35,736

-17.1

32,608

-17.0

156,244

-18.6

440,984

-19.1

663,249

-24.4

703,544

Mar 11 Apr 10

-14.3

976,597

NA

0

15.2

5,650

-13.1

18,151

NA

0

-46.1

24,682

-125.0

-28

7.1

38,567

-0.1

3,581

2.6

12,368

-17.8

97,321

-18.1

10,193

35.7

959

5.9

36,405

-19.9

35,321

-12.7

236,433

-15.2

554,314

-14.0

873,625

-14.4

970,946

Apr 11 May 10

-6.7

1,462,543

NA

0

-20.8

3,760

-24.3

13,478

-32.3

668

-44.3

24,600

189.1

-42

6.7

663,407

8.0

4,237

2.3

12,433

2.5

718,781

2.5

9,530

6.0

951

0.5

32,871

-8.4

37,784

-16.6

174,293

-14.7

484,574

-14.1

740,002

-6.6

1,458,783

May 11 Jun 10

0

Page 7

-11.6

1,034,177

NA

0

-9.2

5,899

22.5

30,620

#DIV/0!

-23.6

35,293

-86.3

15

-12.9

154,043

-26.4

3,229

-0.5

13,934

-11.0

237,134

33.1

10,541

9.2

1,047

33.4

38,136

2.3

33,569

1.0

209,146

-18.6

498,705

-11.1

791,144

-11.1

1,028,278

Jun 11 Jul 10*

63

64

Revenue Forecast Variance Thousands of Dollars

Period/Source

Estimate*

Actual

Difference Amount

Percent

June 11 - July 10, 2009 July 10, 2009 Collections Compared to the June 2009 Forecast Department of Revenue-Total Revenue Act** (1) Non-Revenue Act(2) Liquor Sales/Liter Cigarette Property (State School Levy) Estate Real Estate Excise Timber (state share) Other Department of Licensing (2) Lottery (5) Total General Fund-State***

$1,029,915 783,759 246,156 14,358 3,306 163,439 60 30,889 0 34,105

$1,028,278 791,144 237,134 13,934 3,229 154,043 15 35,293 0 30,620

($1,636) 7,385 (9,022) (424) (77) (9,396) (45) 4,405 0 (3,485)

-0.2% 0.9% -3.7% -3.0% -2.3% -5.7% -75.0% 14.3% 0.0% -10.2%

6,257 0

5,899 0

(358) 0

-5.7% 0.0%

$1,036,172

$1,034,177

($1,994)

-0.2%

Cumulative Variance Since the June Forecast (June 11 - July 10, 2009) Department of Revenue-Total Revenue Act** (3) Non-Revenue Act(4) Liquor Sales/Liter Cigarette Property (State School Levy) Estate Real Estate Excise Timber (state share) Other Department of Licensing (4) Lottery (5) Total General Fund-State***

$1,029,915 $783,759 $246,156 $14,358 $3,306 $163,439 $60 $30,889 $0 $34,105

1,028,278 791,144 237,134 13,934 3,229 154,043 15 35,293 0 30,620

(1,636) 7,385 (9,022) (424) (77) (9,396) (45) 4,405 0 (3,485)

-0.2% 0.9% -3.7% -3.0% -2.3% -5.7% -75.0% 14.3% 0.0% -10.2%

6,257 0

5,777 0

(480) 0

-7.7% 0.0%

$1,036,172

$1,034,055

($2,117)

-0.2%

1 Collections June 11, 2008 - July 10, 2009. Collections primarily reflect May 2009 activity of monthly taxpayers. 2 June 2009 collections. 3 Cumulative collections, estimates and variance since the June 2009 forecast; (June 11 - July 10, 2009) and revisions to history. 4 Cumulative collections, estimates and variance since the June forecast (June 2009) and revisions to history. 5 Lottery transfers to the General Fund * Based on the June 2009 economic and revenue forecast. **The Revenue Act consists of the retail sales, B&O, use, public utility, tobacco products taxes, and penalty and interest. *** Detail may not add due to rounding. The General Fund-State total in this report includes only collections from larger state agencies: the Department of Revenue and the Department of Licensing.

June 2009

Page 8

0

0

11

2

3

0

0

2

2

0

0

12

32 12 26 26 14 9 12

$401-$500

$501-$600

$601-$700

$701-$800

$801-$1M

$1M-$1.5M

$1.5M-$2M

OVER $2M

TOTAL

2003 2004 2005 2006 2007 2008 2009

29 25 26 18 29 8 11

2

1

0

1

2

3

2

3

$0-$400

FEB

JAN

SALE PRICE

31 38 38 21 29 17 14

14

1

1

3

2

3

0

2

1

1

MAR

39 48 49 29 26 19 13

13

0

1

1

1

2

0

2

2

4

APR

15

0

1

4

2

1

3

2

1

1

JUN

JUL

AUG

47 33 39 27 38 15 18

46 55 44 49 48 18 15

48 50 47 26 38 18

58 50 40 42 39 26

SEVEN YEAR COMPARISON

18

0

2

1

2

1

2

3

2

5

MAY

44 51 47 38 26 17

SEP

30 43 27 27 11 12

OCT

18 26 24 25 19 16

NOV

OVERVIEW OF RESIDENCES SOLD ON BAINBRIDGE ISLAND JANUARY 1 THROUGH JUNE 30, 2009

32 37 35 21 15 13

DEC

224 211 222 170 184 86 83

YTD

83

1

5

13

10

7

6

14

11

16

YTD

454 468 442 349 332 188 83

YEAR

286

18

17

48

40

36

34

31

32

30

19

NA

17

12

20

36

11

16

32

30

ON MONTHS MKT OF INV

11

0

0

3

1

1

1

1

0

4

14

0

1

0

4

0

3

0

3

3

9.79%

0.00%

11.76%

6.25%

12.50%

5.56%

11.76%

6.45%

9.38%

23.33%

-3.49%

% Change YTD 2008 to 2009

3

0

1

0

0

1

0

1

0

0

CONTRACT STATUS % OF CTG PI PEND LISTINGS

RESIDENCES FOR SALE (AS OF 07/07/09)

BAINBRIDGE ISLAND RESIDENTIAL OVERVIEW

65

0

0

1

0

0

0

0

0

0

0

0

1

2 13 3 1

$401-$500

$501-$600

$601-$700

$701-$800

$801-$1M

$1M-$1.5M

$1.5M-$2M

OVER $2M

TOTAL

2006 2007 2008 2009

1 9 7 1

0

0

0

0

0

1

0

1

$0-$400

FEB

JAN

SALE PRICE

8 11 4 4

4

0

0

0

0

0

2

1

1

0

MAR

7 16 4 6

6

0

0

0

0

0

1

0

2

3

APR

6

0

0

0

0

0

0

1

0

5

JUN

JUL

AUG

14 20 5 5

38 11 8 6

6 11 3

16 17 3

FOUR YEAR COMPARISON

5

0

0

0

0

0

0

2

0

3

MAY

14 11 3

SEP

17 5 2

OCT

20 5 1

NOV

OVERVIEW OF CONDOMINIUMS SOLD ON BAINBRIDGE ISLAND JANUARY 1 THROUGH JUNE 30, 2009

12 4 1

DEC

70 80 31 23

YTD

23

0

0

0

0

0

3

4

4

12

YTD

155 133 44 23

YEAR

115

0

0

2

4

5

2

18

23

61

19

NA

NA

NA

NA

NA

NA

18

NA

12

4

0

0

0

0

0

0

0

0

4

4

0

0

0

0

0

0

1

2

1

6.96%

NA

NA

0.00%

0.00%

0.00%

0.00%

5.56%

8.70%

8.20%

-25.81%

% Change YTD 2008 to 2009

0

0

0

0

0

0

0

0

0

0

ON MONTHS CONTRACT STATUS % OF MKT OF INV CTG PI PEND LISTINGS

CONDOMINIUMS FOR SALE (AS OF 07/07/09)

BAINBRIDGE ISLAND CONDOMINIUM OVERVIEW

66

0

0

12

2

3

0

0

2

2

0

0

13

28 27 12 13

$401-$500

$501-$600

$601-$700

$701-$800

$801-$1M

$1M-$1.5M

$1.5M-$2M

OVER $2M

TOTAL

2006 2007 2008 2009

19 38 15 12

2

1

0

1

2

4

2

4

$0-$400

FEB

JAN

SALE PRICE

29 40 21 18

18

1

1

3

2

3

2

3

2

1

MAR

36 42 23 19

19

0

1

1

1

2

1

2

4

7

APR

21

0

1

4

2

1

3

3

1

6

JUN

JUL

AUG

41 58 20 23

87 59 24 21

32 49 21

58 56 28

FOUR YEAR COMPARISON

23

0

2

1

2

1

2

5

2

8

MAY

52 37 19

SEP

44 16 14

OCT

45 24 17

NOV

33 19 14

DEC

OVERVIEW OF RESIDENCES AND CONDOMINIUMS SOLD ON BAINBRIDGE ISLAND JANUARY 1 THROUGH JUNE 30, 2009

240 264 115 106

YTD

106

1

5

13

10

7

9

18

15

28

YTD

504 465 228 106

YEAR

401

18

17

50

44

41

36

49

55

91

19

NA

17

13

22

41

12

16

55

15

ON MONTHS MKT OF INV

15

0

0

3

1

1

1

1

0

8

18

0

1

0

4

0

3

1

5

4

8.98%

0.00%

11.76%

6.00%

11.36%

4.88%

11.11%

6.12%

9.09%

13.19%

-7.83%

% Change YTD 2008 to 2009

3

0

1

0

0

1

0

1

0

0

CONTRACT STATUS % OF CTG PI PEND LISTINGS

PROPERTIES FOR SALE (AS OF 07/07/09)

BAINBRIDGE ISLAND RESIDENTIAL AND CONDOMINIUM OVERVIEW

67

0

0

0

0

0

0

0

0

0

0

1

1

7 3 0 1

$401-$500

$501-$600

$601-$700

$701-$800

$801-$1M

$1M-$1.5M

$1.5M-$2M

OVER $2M

TOTAL

2006 2007 2008 2009

6 2 1 0

0

0

0

0

0

0

0

0

$0-$400

FEB

JAN

SALE PRICE

4 3 4 2

2

0

0

0

0

0

0

0

0

2

MAR

1 6 2 1

1

0

0

0

0

0

0

0

0

1

APR

1

0

0

0

0

0

0

0

0

1

JUN

JUL

AUG

3 2 0 0

3 2 2 1

6 2 0

3 2 0

FOUR YEAR COMPARISON

0

0

0

0

0

0

0

0

0

0

MAY

4 5 1

SEP

4 1 2

OCT

4 1 1

NOV

OVERVIEW OF RESIDENTIAL LAND SOLD ON BAINBRIDGE ISLAND JANUARY 1 THROUGH JUNE 30, 2009

5 1 1

DEC

24 18 9 5

YTD

5

1

0

0

0

0

0

0

0

4

YTD

50 30 14 5

YEAR

81

5

1

3

7

4

3

2

11

45

81

NA

NA

NA

NA

NA

NA

NA

NA

45

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

-44.44%

% Change YTD 2008 to 2009

0

0

0

0

0

0

0

0

0

0

ON MONTHS CONTRACT STATUS % OF MKT OF INV CTG PI/PF PEND LISTINGS

RESIDENTIAL LAND FOR SALE (AS OF 07/07/09)

BAINBRIDGE ISLAND RESIDENTIAL LAND OVERVIEW

68

$860,106 $645,000

2008

2008

$6,275,000 $6,200,000 $170,000 $220,000

2009

Highest Price Lowest Price

$735,458 $559,000 $697,458 $640,000

Water View (Non Waterfront)

Mountain View (Non Waterfront)

$647,125 $588,250

$784,960 $849,000

$656,359 $583,750

$1,100,000 $290,000

$895,000 $517,000

$1,500,000 $1,235,000 $450,000 $384,000

$1,500,000 $1,287,718 $170,000 $220,000

13

13

68

15

83

2009

4

11

70

16

86

2008

Number of Sales

Data compiled from the Northwest Multiple Listing Service as of July 7, 2009. Information is deemed accurate, but not guaranteed.

$624,268 $545,000

$1,427,380 $1,751,500 $6,275,000 $6,200,000 $650,000 $1,041,500 $1,300,000 $375,000

$769,409 $617,000

2009

Non Waterfront

Waterfront

All Residential

Description

Average Price Median Price

January 1 – June 30 2009 and 2008

RESIDENTIAL SALES – BAINBRIDGE ISLAND

85

55

126

149

130

2009

236

102

115

58

104

2008

Average Market Time

69

$367,500 $367,500 $406,783 $370,000 $479,242 $503,225 $419,667 $370,000

Waterfront

Non Waterfront

Water View (Non Waterfront)

Mountain View (Non Waterfront)

$635,343 $554,900

$651,922 $554,900

$450,189 $382,000

$674,500 $674,500

$465,143 $391,750

2008

$610,000 $279,000

$610,000 $279,000

$610,000 $191,000

$520,000 $215,000

$610,000 191,000

2009

$1,050,000 $300,000

$1,120,000 $299,900

$1,120,000 $266,000

$789,000 $560,000

$1,120,000 $266,000

2008

Highest Price Lowest Price

3

6

21

2

23

2009

7

9

28

2

30

2008

Number of Sales

Data compiled from the Northwest Multiple Listing Service as of July 7, 2009. Information is deemed accurate, but not guaranteed.

$403,367 $370,000

2009

All Condominiums

Description

Average Price Median Price

January 1 – June 30 2009 and 2008

CONDOMINIUM SALES – BAINBRIDGE ISLAND

170

139

150

154

150

2009

99

111

123

79

120

2008

Average Market Time

70

$000,000 $000,000 $728,000 $136,000 $115,000 $115,000 $115,000 $115,000

Waterfront

Non Waterfront

Water View (Non Waterfront)

Mountain View (Non Waterfront)

$000,000 $000,000

$300,000 $300,000

$225,436 $202,645

$000,000 $000,000

$225,436 $202,645

2008

$115,000 $115,000

$115,000 $115,000

$3,000,000 $99,000

$000,000 $000,000

$3,000,000 $99,000

2009

$000,000 $000,000

$300,000 $300,000

$425,000 $130,000

$000,000 $000,000

$425,000 $130,000

2008

Highest Price Lowest Price

1

1

5

0

5

2009

0

1

9

0

9

2008

Number of Sales

Data compiled from the Northwest Multiple Listing Service as of July 7, 2009. Information is deemed accurate, but not guaranteed.

$728,000 $136,000

2009

All Land

Description

Average Price Median Price

January 1 – June 30 2009 and 2008

135

135

305

0

305

2009

0

42

90

0

90

2008

Average Market Time

RESIDENTIAL LAND SALES – BAINBRIDGE ISLAND

71

$860,106 $645,000

2008

2008

$6,275,000 $6,200,000 $170,000 $220,000

2009

Highest Price Lowest Price

$735,458 $559,000 $697,458 $640,000

Water View (Non Waterfront)

Mountain View (Non Waterfront)

$647,125 $588,250

$784,960 $849,000

$656,359 $583,750

$1,100,000 $290,000

$895,000 $517,000

$1,500,000 $1,235,000 $450,000 $384,000

$1,500,000 $1,287,718 $170,000 $220,000

13

13

68

15

83

2009

4

11

70

16

86

2008

Number of Sales

Data compiled from the Northwest Multiple Listing Service as of July 7, 2009. Information is deemed accurate, but not guaranteed.

$624,268 $545,000

$1,427,380 $1,751,500 $6,275,000 $6,200,000 $650,000 $1,041,500 $1,300,000 $375,000

$769,409 $617,000

2009

Non Waterfront

Waterfront

All Residential

Description

Average Price Median Price

January 1 – June 30 2009 and 2008

RESIDENTIAL SALES – BAINBRIDGE ISLAND

85

55

126

149

130

2009

236

102

115

58

104

2008

Average Market Time

72

City of Bainbridge Island DEPARTMENT OF FINANCE AND ADMINISTRATIVE SERVICES

73

MEMORANDUM TO:

City Manager, Mark Dombroski Director Finance & Administration, Elray Konkel City Council Members

FROM:

Cost Accountant, Emily Boberg Courts

DATE:

July 28, 2009

RE:

July Cash Flow

The attached charts and supporting schedules provide an overview of the anticipated unrestricted tax-supported cash position1 of the City as of July 2009. The Cash Flow schedule is not a formal financial statement; rather, it is a management tool used to track and forecast cash inflows and outflows. For ease of reading, the Cash Flow format is generally comparable to that of the monthly budget and financial statement reporting. Some differences as compared to the financial statement presentation are: The tax-supported Cash Flows present restricted, trust and agency fund details. The activity in these funds is adjusted out below the line, because those funds are not available for general use. Accordingly, we continue to report a net $0 available for these funds. The tax-supported Cash Flows incorporate the Building and Development Services (B&DS) fund; although the B&DS fund is reported as an enterprise fund in the financial statements, it is subsidized by the general fund. Because of the timing difference, Cash Flow outflows will not match financial statement expenses; financial statements are presented on a modified accrual basis whereby expenses are reported as incurred, but Cash Flow outflows are based on expenditures as paid. Because Cash Flow reports all inflows and outflows of cash, financial statement revenues will not match casKIORZLQIORZVLQFDVHVRI³QRQ-revenue´ inflows, such as receipt of loan proceeds. (See Attachment A, page 2.) Unless otherwise noted, all further references to cash and Cash Flow within this document refer to unrestricted tax-supported cash items as described above.

MONTHLY DESCRIPTION The July Cash Flow began with the June Cash Flow and incorporated known June activity as well as corrected activity and adjusted forecasts where appropriate. Values reported for January through June are based on actual activity, and July through December values are forecast. 1

As indicated by the description, unrestricted tax-supported cash flow does not include Utility-related cash flow. 280 MADISON AVENUE NORTH BAINBRIDGE ISLAND, WA 98110-1812 PHONE: (206) 780-8616 FAX: (206) 780-8599 EMAIL: [email protected] www.ci.bainbridge-isl.wa.us

74

YEAR-END CASH Projected year-end Cash (June Cash Flow): Projected year-end Cash (July Cash Flow): Net Increase (Decrease):

$1,293,211 $1,198,723 ($94,487)

As of the June cash flow, year-end cash flow was anticipated to be $1,293,211. In July, this amount was decreased by the following activity2: Operating Activities ± net decrease to year-end cash of ($120,000): June actuals ($10,000) unfavorable compared to projection; ($130,000) net decrease in projected inflows; $30,000 net decrease in projected outflows (including below the line); ($10,000) correction to May reporting related to Restricted Funds. Capital Activities ± net increase to year-end cash of $30,000: June actuals ($200,000) unfavorable compared to projection; ($1,170,000) decrease in Capital Construction Fund inflow projections; and, $1,400,000 net decrease in projected outflows. 7KH SULRU PRQWK¶V FDVK IORZ SURYLGHV DGGLWLRQDO LQIRUPDWLRQ WKDW LV HVVHQWLDO to a full understanding of current month changes.

CRITICAL ASSUMPTIONS The July Cash Flow assumes: An inflow of $850,000 in 2009 for sales of excess land. Should any of these sales not occur, ending cash balance will not meet Cash Flow expectations. o Projected year-end cash if land sales do not occur: $348,723 Reliability of revenue assumptions. o 98% of Property Tax levied will be received in 2009.

PLANNED NEXT STEPS Create a Utility Cash Flow model, following the format of the tax-supported Cash Flow model. Estimated completion: August 2009. Integrate annual cash flow information in the 6-year Financial Capacity Analysis. Use cash flow model data to help build the 2010 budget.

Attachments Attached are the following supporting charts and schedules: City of Bainbridge Island 2009 June Cash Flow Plan ± Tax Supported City of Bainbridge Island 2009 July Cash Flow Plan ± Tax Supported City of Bainbridge Island 2009 Cash Flow Difference Report ± Tax Supported: July Cash Flow Less June Cash Flow Attachment A: Discussion of Month Over Month Variances Chart 1: COBI 2009 Cash Flow Monitoring ± Tax Supported Chart 2: COBI 2009 Cash Balance Monitoring ± Tax Supported

2

All figures rounded to the nearest ten thousand.

Page 2

7July 2009 Cash Flow Plan - Tax Cash Flow Model

Ending Cash Balance - Jun Cash Flow

Total Outflows - Jun Cash Flow 410,809

789,225

1,717,574

402,582 0 0

411,636 0 0 2,086,792

681,316 236,194 15,241 38,425 160,489 666 1,830 1,555 26,905 2,777 25,584 3,035 0 0 109,707 47 0 9,852 1,369 1,314,992

991,703 118,160 7,925 16,510 5,090 1,424 20,795 63,873 45,043 8,409 1,470 10,076 0 146,251 0 69,139 1,916,678 -9,879 600,000 0 2,506,799

410,809

Actual Feb

734,414 247,777 9,778 4,950 5,227 246 733 0 10,049 18,215 19,251 4,609 0 500,993 18,258 0 0 99,422 1,233 1,675,155

741,547 175,321 34,392 15,095 2,952 1,163 0 175,408 54,374 6,460 1,320 4,047 0 295 0 46,726 2,505,381 -7,780 0 0 2,497,601

Inflows - Jun Cash Flow General Fund - Taxes General Fund - Fees & Service Charges General Fund - Intergovernmental Revenue General Fund - Fines & Forfeits General Fund - Miscellaneous General Fund - Investment Revenue General Fund - Other External Sources Streets Fund Real Estate Excise Tax Fund Civic Improvement Fund (Restricted) Affordable Housing Fund (Restricted) GO Bond Funds LID Bond Funds Capital Construction Fund LID Capital Construction Fund Building & Development Services Fund Subtotal Inflows - Jun Cash Flow Exclusion of Restricted Funds Interfund Loan Adjustments to Inflow Total Inflows - Jun Cash Flow

Outflows - Jun Cash Flow Salary Benefits Supplies Professional Services Communications Travel Training Advertising Operating Leases Utilities Repair & Maintenance All Other Miscellaneous Contingency Other Services & Charges Intergovernmental Capital Equipment Capital Projects Debt Service Other non-operating Subtotal Outflows - Jun Cash Flow Exclusion of Restricted Funds Outflows - 2008 Expenses paid in 2009 Interfund Loan Repayment Adjustments to Outflow

1,246,281

Beginning Cash Balance

Actual Jan

1,294,210

1,254,716

-58,673 0 0

619,097 210,019 4,449 96,400 9,029 -550 3,301 1,140 188,332 75,884 12,997 19,714 0 0 17,963 0 0 47,103 8,510 1,313,389

741,290 117,448 56,822 15,877 3,744 -311 1,000 528,329 109,880 5,497 725 15,880 1,340 100,531 0 82,296 2,569,573 -6,222 0 -14,425 2,548,926

789,225

Actual Mar

2,666,320

2,372,044

602,828 223,821 8,246 267,457 57,530 635 2,238 1,218 85,360 111,330 49,001 2,070 0 330 21,897 0 64,161 145,454 2,772 1,646,348 -5,769 0 603,346 128,119

2,761,334 168,455 39,241 15,729 2,348 3,199 0 172,337 70,738 3,234 705 189,581 5,344 66,428 0 83,815 4,876,698 -3,939 0 165,605 5,038,364

1,294,210

Actual Apr

Page 1 of 3

3,055,699

1,319,855

600,077 209,692 23,802 111,737 6,943 1,031 2,668 1,655 83,280 39,395 14,062 1,292 0 0 72,686 432 87,223 10,413 3,939 1,270,327 -10,728 0 0 60,255

1,278,129 104,652 19,068 16,274 7,707 881 8,000 73,730 66,546 5,735 548 66,857 670 0 0 66,720 4,381,837 -6,283 0 0 4,375,554

2,666,320

Actual May

2,352,647

1,787,921

0 0 0

528,313 179,634 33,551 127,473 7,534 409 1,570 2,454 84,482 48,025 57,238 10,995 0 1,088 107,166 0 244,118 351,547 2,323 1,787,921

419,929 102,878 38,540 25,857 4,779 3,631 0 67,458 83,449 0 0 3,752 0 261,301 0 73,295 4,140,568 0 0 0 4,140,568

3,055,699

Jun

1,790,580

1,725,057

0 0 0

526,084 213,018 51,811 235,956 60,787 1,453 7,058 1,840 82,870 48,025 64,123 11,142 0 1,088 30,378 0 321,901 57,578 9,947 1,725,057

528,030 161,434 25,163 15,167 -184 2,951 0 176,782 75,224 0 0 1,278 0 102,001 0 75,145 3,515,637 0 0 0 3,515,637

2,352,647

Jul

City of Bainbridge Island 2009 Cash Flow Plan - Tax Supported

1,878,157

2,185,768

0 0 0

541,786 174,903 46,043 291,568 10,279 1,353 8,835 1,840 82,902 48,025 93,818 505,094 0 1,088 88,278 0 285,302 0 4,656 2,185,768

790,958 94,559 17,058 16,301 4,804 3,631 0 96,958 119,630 0 0 2,116 0 1,059,620 0 67,709 4,063,925 0 0 0 4,063,925

1,790,580

Aug

1,361,598

1,564,075

0 0 0

530,204 174,317 46,473 180,126 10,279 1,353 7,027 2,365 85,030 48,025 44,659 12,181 0 1,088 109,347 0 273,293 36,672 1,635 1,564,075

540,252 97,503 35,207 19,016 6,013 3,631 0 80,271 104,620 0 0 9,378 0 98,822 0 52,801 2,925,672 0 0 0 2,925,672

1,878,157

Sep

1,744,845

2,645,953

0 0 0

532,704 218,774 46,973 193,186 61,273 1,503 8,335 1,940 84,120 48,025 44,132 10,714 0 1,088 36,278 0 564,506 790,006 2,397 2,645,953

1,946,617 141,814 29,293 21,960 3,890 3,631 0 175,046 57,417 0 0 148,600 0 431,139 0 69,794 4,390,798 0 0 0 4,390,798

1,361,598

Oct

2,586,170

1,740,094

0 0 0

536,786 174,903 44,923 184,171 10,765 1,357 6,627 2,140 82,780 48,025 64,136 10,841 0 1,088 33,498 0 536,165 0 1,890 1,740,094

1,861,920 109,846 15,196 20,466 5,472 3,631 0 101,522 99,713 0 0 69,204 0 233,348 0 61,100 4,326,264 0 0 0 4,326,264

1,744,845

Nov

1,293,211

3,146,773

0 0 -10,356

527,445 175,462 45,453 155,427 10,765 1,303 6,892 2,040 83,030 48,025 52,709 12,516 0 1,088 99,907 0 607,893 1,207,779 119,395 3,157,128

530,578 96,957 44,296 18,437 7,559 3,631 850,000 86,879 65,597 0 0 2,236 0 79,610 0 26,192 4,398,142 0 0 41,842 4,439,983

2,586,170

Dec

23,546,622

6,961,055 2,438,514 376,741 1,886,875 410,900 10,759 57,114 20,185 979,140 583,776 541,710 604,204 0 508,939 745,363 479 2,984,562 2,755,826 160,066 22,026,208 -16,497 755,546 603,346 178,019 0

13,132,287 1,489,028 362,201 216,689 54,175 31,095 879,795 1,798,592 952,231 29,335 4,768 523,005 7,354 2,579,346 0 774,731 22,834,633 -34,103 600,000 193,021 23,593,551

Total

7/30/2009 6:01 PM

75

7July 2009 Cash Flow Plan - Tax Cash Flow Model

Ending Cash Balance - Jul Cash Flow

Total Outflows - Jul Cash Flow

Outflows - Jul Cash Flow Salary Benefits Supplies Professional Services Communications Travel Training Advertising Operating Leases Utilities Repair & Maintenance All Other Miscellaneous Contingency Other Services & Charges Intergovernmental Capital Equipment Capital Projects Debt Service Other non-operating Subtotal Outflows - Jul Cash Flow Exclusion of Restricted Funds Outflows - 2008 Expenses paid in 2009 Interfund Loan Repayment Adjustments to Outflow

Inflows - Jul Cash Flow General Fund - Taxes General Fund - Fees & Service Charges General Fund - Intergovernmental Revenue General Fund - Fines & Forfeits General Fund - Miscellaneous General Fund - Investment Revenue General Fund - Other External Sources Streets Fund Real Estate Excise Tax Fund Civic Improvement Fund Affordable Housing Fund GO Bond Funds LID Bond Funds Capital Construction Fund LID Capital Construction Fund Building & Development Services Fund Subtotal Inflows - Jul Cash Flow Exclusion of Restricted Funds Interfund Loan Adjustments to Inflow Total Inflows - Jul Cash Flow

Beginning Cash Balance

410,809

789,225

1,717,574

402,582 0 0

411,636 0 0 2,086,792

681,316 236,194 15,241 38,425 160,489 666 1,830 1,555 26,905 2,777 25,584 3,035 0 0 109,707 47 0 9,852 1,369 1,314,992

Feb 991,703 118,160 7,925 16,510 5,090 1,424 20,795 63,873 45,043 8,409 6,681 10,076 0 146,251 0 69,139 1,921,890 -15,090 600,000 0 2,506,799

$410,809

Actual Feb

734,414 247,777 9,778 4,950 5,227 246 733 0 10,049 18,215 19,251 4,609 0 500,993 18,258 0 0 99,422 1,233 1,675,155

Jan 741,547 175,321 34,392 15,095 2,952 1,163 0 175,408 54,374 6,460 1,320 4,047 0 295 0 46,726 2,505,381 -7,780 0 0 2,497,601

$1,246,281

Actual Jan

1,294,210

1,254,716

-58,673 0 0

619,097 210,019 4,449 96,400 9,029 -550 3,301 1,140 188,332 75,884 12,997 19,714 0 0 17,963 0 0 47,103 8,510 1,313,389

Mar 741,290 117,448 56,822 15,877 3,744 -311 1,000 528,329 109,880 5,497 5,228 15,880 1,340 100,531 0 82,296 2,574,076 -10,725 0 ($14,425) 2,548,926

$789,225

Actual Mar

2,666,320

2,372,044

602,828 223,821 8,246 267,457 57,530 635 2,238 1,218 85,360 111,330 49,001 2,070 0 330 21,897 0 64,161 145,454 2,772 1,646,348 -5,769 0 603,346 128,119

Apr 2,761,334 168,455 39,241 15,729 2,348 3,199 0 172,337 70,738 3,234 12,951 189,581 5,344 66,428 0 83,815 4,888,945 -16,185 0 165,605 5,038,364

$1,294,210

Actual Apr

Page 2 of 3

3,044,971

1,330,583

600,077 209,692 23,802 122,465 6,943 1,031 2,668 1,655 83,280 39,395 14,062 1,292 0 0 72,686 432 87,223 10,413 3,939 1,281,055 -10,728 0 0 60,255

May 1,278,129 104,652 19,068 16,274 7,707 881 8,000 73,730 66,546 5,735 3,554 66,857 670 0 0 66,720 4,384,843 -9,289 0 0 4,375,554

$2,666,320

Actual May

2,130,502

1,946,914

529,959 185,559 14,733 229,184 11,478 582 2,280 2,450 79,528 38,623 26,045 3,954 0 0 104,662 28 199,619 426,793 9,859 1,865,336 -30,556 0 0 112,134

Jun 484,304 92,010 40,917 10,411 15,188 7,183 3,700 78,546 89,121 4,651 9,541 3,680 335 131,792 0 75,258 4,091,608 -14,192 0 0 4,077,416

$3,044,971

Actual Jun

1,766,093

1,663,630

0 0 0

524,834 175,251 49,880 210,137 58,677 1,343 5,628 887 83,114 48,025 79,764 9,854 0 0 40,785 0 355,651 9,852 9,947 1,663,630

Jul 528,030 161,434 25,163 15,167 -184 2,951 0 176,782 75,224 7,785 700 1,278 0 238,232 0 75,145 3,438,208 -8,485 0 0 3,429,723

$2,130,502

Jul

City of Bainbridge Island 2009 Cash Flow Reduction Plan - Tax Supported

1,535,695

1,603,332

0 0 0

541,133 210,590 46,328 274,366 10,548 1,373 8,835 7,840 85,906 48,025 93,818 10,094 0 1,088 88,278 0 170,456 0 4,656 1,603,332

Aug 790,958 94,559 17,058 16,301 4,804 3,631 0 96,958 119,630 7,785 800 2,116 0 159,209 0 67,709 3,147,611 -8,585 0 0 3,139,027

$1,766,093

Aug

1,211,061

1,384,341

0 0 0

529,551 174,349 46,758 162,924 10,548 1,473 8,027 2,365 88,034 48,025 44,659 12,181 0 1,088 109,347 0 106,705 36,672 1,635 1,384,341

Sep 540,252 97,503 35,207 19,016 6,013 3,631 0 80,271 104,620 7,785 800 9,378 0 111,014 0 52,801 2,603,987 -8,585 0 0 2,595,403

$1,535,695

Sep

1,531,158

2,278,168

0 0 0

532,051 174,349 48,258 175,984 61,542 3,023 8,335 1,940 87,124 48,025 44,132 10,714 0 1,088 36,278 0 252,923 790,006 2,397 2,278,168

Oct 1,846,617 141,814 29,293 21,960 3,890 3,631 0 175,046 57,417 7,785 780 165,000 0 83,803 0 69,794 3,817,890 -8,565 0 0 3,809,326

$1,211,061

Oct

2,027,517

1,901,948

0 0 0

537,667 233,727 46,208 167,823 11,034 1,377 6,627 2,140 85,784 48,025 64,136 505,841 0 1,088 33,498 0 155,083 0 1,890 1,901,948

Nov 1,800,054 109,846 15,196 20,466 5,472 3,631 0 101,522 99,713 7,785 800 79,441 0 101,866 0 61,100 3,938,050 -8,585 0 0 3,929,465

$1,531,158

Nov

1,198,723

2,750,860

0 0 14,963

530,457 176,868 46,738 139,079 11,034 1,423 6,892 2,040 86,034 48,025 52,709 12,516 0 1,088 99,907 0 150,465 1,251,228 119,395 2,735,897

Dec 530,578 96,957 44,296 18,437 7,559 3,631 850,000 91,061 65,597 7,785 893 2,236 0 143,680 0 26,192 3,916,419 -8,678 0 41,842 3,949,583

$2,027,517

Dec

22,290,902

6,963,385 2,458,197 360,417 1,889,193 414,079 12,622 57,394 25,229 989,451 574,374 526,159 595,875 0 506,763 753,266 507 1,542,285 2,826,794 167,602 20,663,592 -47,053 755,546 603,346 315,471

Total 13,034,796 1,478,160 364,578 201,243 64,584 34,647 883,495 1,813,862 957,903 80,693 44,048 549,570 7,689 1,283,101 0 776,695 21,575,064 -124,741 600,000 193,021 22,243,344

Total

7/30/2009 6:01 PM

76

0 0 0

0 0 0 0 0

Total Outflows

Ending Cash Balance

0

0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 4,503 0 0 0 0 0 4,503 (4,503) 0 0 0

0

0

0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 12,246 0 0 0 0 0 12,246 (12,246) 0 0 0

0

(10,728)

10,728

0 0 0 10,728 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10,728 0 0 0 0

0 0 0 0 0 0 0 0 0 0 3,006 0 0 0 0 0 3,006 (3,006) 0 0 0

0

(222,145)

158,993

1,646 5,925 (18,818) 101,711 3,944 173 710 (4) (4,953) (9,402) (31,193) (7,041) 0 (1,088) (2,504) 28 (44,499) 75,245 7,536 77,415 (30,556) 0 0 112,134

64,375 (10,868) 2,377 (15,446) 10,409 3,552 3,700 11,088 5,672 4,651 9,541 (72) 335 (129,509) 0 1,963 (48,960) (14,192) 0 0 (63,152)

(10,728)

(24,487)

(61,427)

(1,250) (37,766) (1,930) (25,819) (2,110) (111) (1,430) (953) 244 0 15,642 (1,287) 0 (1,088) 10,407 0 33,750 (47,726) 0 (61,427) 0 0 0 0

0 0 0 0 0 0 0 0 0 7,785 700 0 0 136,231 0 0 (77,429) (8,485) 0 0 (85,914)

(222,145)

(342,462)

(582,436)

(653) 35,687 285 (17,202) 269 20 0 6,000 3,004 0 0 (495,000) 0 0 0 0 (114,847) 0 0 (582,436) 0 0 0 0

0 0 0 0 0 0 0 0 0 7,785 800 0 0 (900,411) 0 0 (916,314) (8,585) 0 0 (924,898)

(24,487)

Aug

(150,536)

(179,733)

(653) 32 285 (17,202) 269 120 1,000 0 3,004 0 0 0 0 0 0 0 (166,588) 0 0 (179,733) 0 0 0 0

0 0 0 0 0 0 0 0 0 7,785 800 0 0 12,192 0 0 (321,685) (8,585) 0 0 (330,270)

(342,462)

Sep

(213,687)

(367,785)

(653) (44,425) 1,285 (17,202) 269 1,520 0 0 3,004 0 0 0 0 0 0 0 (311,583) 0 0 (367,785) 0 0 0 0

(100,000) 0 0 0 0 0 0 0 0 7,785 780 16,400 0 (347,336) 0 0 (572,908) (8,565) 0 0 (581,472)

(150,536)

Oct

(558,652)

161,854

881 58,825 1,285 (16,348) 269 20 0 0 3,004 0 0 495,000 0 0 0 0 (381,082) 0 0 161,854 0 0 0 0

(61,866) 0 0 0 0 0 0 0 0 7,785 800 10,237 0 (131,482) 0 0 (388,214) (8,585) 0 0 (396,798)

(213,687)

Nov

7July 2009 Cash Flow Plan - Tax Cash Flow Model

Page 3 of 3

* Adjustments to prior months reflect non-revenue inflow activity (in this case, transfers in) in restricted funds not previously reported on cash flow but present in financial statements. Net $0 effect on ending cash balance. Ώ May Outflows were corrected to include Restricted Funds outflows in Professional Services. Below the line removal was appropriately included in June's reporting of May actuals.

0

0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 5,211 0 0 0 0 0 5,211 (5,211) 0 0 0

0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Inflows General Fund - Taxes General Fund - Fees & Service Charges General Fund - Intergovernmental Revenue General Fund - Fines & Forfeits General Fund - Miscellaneous General Fund - Investment Revenue General Fund - Other External Sources Streets Fund Real Estate Excise Tax Fund Civic Improvement Fund * Affordable Housing Fund GO Bond Funds LID Bond Funds Capital Construction Fund LID Capital Construction Fund Building & Development Services Fund Subtotal Inflows Exclusion of Restricted Funds Interfund Loan Adjustments to Inflows Total Inflows

Actual Feb

Outflows Salary Benefits Supplies Ώ Professional Services Communications Travel Training Advertising Operating Leases Utilities Repair & Maintenance All Other Miscellaneous Contingency Other Services & Charges Intergovernmental Capital Equipment Capital Projects Debt Service Other non-operating Subtotal Outflows Exclusion of Restricted Funds Outflows - 2008 Expenses paid in 2009 Interfund Loan Repayment Adjustments to Outflow

0

Beginning Cash Balance

Actual Jan

City of Bainbridge Island 2009 Cash Flow Difference Report - Tax Supported Jul Cash Flow Less Jun Cash Flow Actual Actual Actual Actual Mar Apr May Jun Jul

(94,487)

(395,913)

3,012 1,406 1,285 (16,348) 269 120 0 0 3,004 0 0 0 0 0 0 0 (457,428) 43,449 0 (421,231) 0 0 0 25,318

0 0 0 0 0 0 0 4,182 0 7,785 893 0 0 64,070 0 0 (481,723) (8,678) 0 0 (490,400)

(558,652)

Dec

(1,255,720)

2,330 19,683 (16,323) 2,318 3,180 1,862 280 5,044 10,311 (9,402) (15,552) (8,329) 0 (2,176) 7,903 28 (1,442,277) 70,968 7,536 (1,362,616) (30,556) 0 0 137,452

(97,491) (10,868) 2,377 (15,446) 10,409 3,552 3,700 15,270 5,672 51,358 39,280 26,565 335 (1,296,245) 0 1,963 (1,259,569) (90,638) 0 0 (1,350,207)

Total

7/30/2009 6:01 PM

77