Section E. Recap By Fund. Table of Contents

Transcription

1

2 Section E. Recap By Fund Table of Contents Fund # Fund Name Page # General Purpose Funds 001 General Fund... E Self-Insurance Claim Reserve... E Youth Services Endowment Fund... E-11 Special Revenue Funds 104 Street Fund... E Transportation Benefit District... E Criminal Justice Fund... E Beautification Fund... E Contingency Fund... E % for the Arts Fund... E Youth & Family Services Fund... E-35 Debt Service Funds 208 Bond Redemption Fund Voted... E Bond Redemption Fund Non-Voted... E-45 Capital Project Funds 342 Town Center Parking Facilities Fund... E Capital Improvement Fund... E Technology & Equipment Fund... E Capital Reserve Fund... E-59 Enterprise Funds 402 Water Fund... E Sewer Fund... E Storm Water Fund... E-75 Internal Service Funds 503 Equipment Rental Fund... E Computer Equipment Fund... E-89 Trust Funds 606 Firefighter s Pension Fund... E-97 Summary Information Comparative Actual and Revenues ( )... E-103 Comparative Actual and Expenditures ( )... E-104

3 GENERAL PURPOSE FUNDS

4 E-2 City of Mercer Island Budget

5 GENERAL FUND 001 Recap by Fund The General Fund is the City s largest fund and accounts for most of the City s general purpose revenues and general government (non-utility) operations. RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ 1,845,816 $ 1,844,650 $ - $ 954, % N/A Property Tax 11,850,029 12,198,327 12,454,555 12,717, % 2.1% Sales Tax 4,806,169 5,053,083 5,129,942 5,098, % -0.6% Business & Utility Taxes 4,361,512 4,224,236 4,832,990 4,899, % 1.4% State Shared Revenues 676, ,764 1,166,215 1,245, % 6.8% Utility & CIP Overhead 727, , , , % 3.0% EMS Revenues 1,280,843 1,338,279 1,363,488 1,391, % 2.1% Licenses and Permits 3,825,661 3,445,482 3,697,847 3,686, % -0.3% General Government 739, , , , % 0.0% Recreation Programs 1,521,235 1,673,815 1,604,300 1,619, % 1.0% District Court Fines 405, , , , % 0.0% Interest 16,219 25,604 25,604 25, % 0.0% Interfund Transfers In 2,021,678 1,054,956 1,035, % % Total Resources $ 34,078,078 $ 33,057,995 $ 32,613,590 $ 32,964, % 1.1% Not Beginning Fund Balance (Reserved) 3,477,389 3,247,150 4,269,081 3,364, % -21.2% TOTAL RESOURCES $ 37,555,467 $ 36,305,145 $ 36,882,671 $ 36,328, % -1.5% USES City Attorney's Office $ 740,946 $ 743,275 $ 783,463 $ 812, % 3.7% City Council 55,921 64,831 60,030 64, % 7.7% City Manager's Office 2,732,154 1,072,591 1,114,758 1,107, % -0.6% Development Services 3,198,726 3,604,751 3,375,199 3,516, % 4.2% Finance 895, , , , % 2.9% Fire and EMS 6,391,012 6,443,305 6,625,396 6,655, % 0.5% Human Resources 627, , , , % 2.8% Information & Geographic Services 129, , , , % 2.5% Municipal Court 444, , , , % 2.6% Non-Departmental 3,767,703 3,994,231 3,048,592 2,831, % -7.1% Parks and Recreation 4,920,319 5,209,047 6,077,512 6,098, % 0.3% Police 6,966,212 7,049,541 7,354,240 7,554, % 2.7% Public Works 1,593,880 1,697,547 1,911,645 2,049, % 7.2% Total Expenditures $ 32,463,667 $ 32,036,063 $ 32,564,082 $ 32,964, % 1.2% Not Percent Change Ending Fund Balance 5,091,800 4,269,081 4,318,589 3,364, % -22.1% TOTAL USES $ 37,555,467 $ 36,305,145 $ 36,882,671 $ 36,328, % -1.5% City of Mercer Island Budget E-3

6 2019 Resources General Fund Recreation Program Fees 5% Municipal Court Fines 1% General Government 1% Begin Fund Balance 1% License and Permit Fees 10% EMS Revenues 4% Property Tax 38% Utility & CIP Overhead 2% State Shared Revenues 4% Business & Utility Taxes 15% Sales Tax 16% 2020 Resources General Fund EMS Revenues 4% Utility & CIP Overhead 2% General Government 1% License and Permit Fees 10% Recreation Program Fees 5% Municipal Court Fines 1% Begin Fund Balance 1% Property Tax 39% State Shared Revenues 4% Business & Utility Taxes 15% Sales Tax 15% E-4 City of Mercer Island Budget

7 Expenditure Summary Presented in the table below are expenditures by category for , followed by two pie charts depicting the percentage of each category relative to total budgeted expenditures in 2019 and USES Description Actual Forecast Budget Budget Salaries and Wages $ 15,776,170 $ 16,209,672 $ 16,850,651 $ 17,227, % 2.2% Benefits 5,690,374 6,052,368 6,148,112 6,351, % 3.3% Supplies 678, , , , % 3.0% Contractual Services 3,517,219 2,207,141 2,561,384 2,253, % -12.0% Equipment Rental 1,429,405 1,446,954 1,674,887 1,695, % 1.2% Insurance 593, , , , % 4.5% Utilities 749, ,377 1,067,442 1,103, % 3.4% Other Services and Charges 702, , , , % -7.8% Intergovernmental 1,182,349 1,294,230 1,361,494 1,407, % 3.4% Interfund Transfers 2,143,579 2,214, , , % 0.2% Total Expenditures $ 32,463,667 $ 32,036,063 $ 32,564,082 $ 32,964, % 1.2% Not Percent Change Ending Fund Balance 5,091,800 4,269,081 4,318,589 3,364, % -22.1% TOTAL USES $ 37,555,467 $ 36,305,145 $ 36,882,671 $ 36,328, % -1.5% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 5,323,205 $ 5,091,800 $ 4,269,081 $ 4,318,589 Plus Revenues 32,232,262 31,213,345 32,613,590 32,010,319 Less Expenditures (32,463,667) (32,036,063) (32,564,082) (32,964,426) Ending Fund Balance $ 5,091,800 $ 4,269,081 $ 4,318,589 $ 3,364,482 Consisting of: Compensated Absence Reserve 1,252, , , ,662 LEOFF1 Long Term Care Reserve 1,406,196 1,509,338 1,612,480 1,715,622 Inventory of Supplies 120, , , ,857 JAG Reserve 79,437 79,437 79,437 79,437 Petty Cash 2,950 2,950 2,950 2,950 Revenue Stabilization Reserve 300, DSG Technology reserve 97,483 85,483 85,483 85,483 Appropriated for Expenditures Next Year - 954, ,107 - Reserved for 2018 Expenditures 1,832, Unassigned - 549, , ,471 Ending Fund Balance $ 5,091,800 $ 4,269,081 $ 4,318,589 $ 3,364,482 City of Mercer Island Budget E-5

8 2019 Uses General Fund Insurance 2% Utilities 3% Other Services and Charges 1% Intergovernmental 4% Interfund Transfers 3% Equipment Rental 5% Contract Services 6% Supplies 3% Salaries 52% Benefits 19% 2020 Uses General Fund Insurance 3% Utilities 3% Other Services and Charges 1% Intergovernmental 4% Interfund Transfers 3% Equipment Rental 5% Contract Services 6% Salaries 52% Supplies 3% Benefits 19% E-6 City of Mercer Island Budget

9 Operating Budget Analysis Recap by Fund A summary analysis follows comparing the 2018 Approved Budget to the Final Budget, broken down by year, with Significant Changes and Service Packages separately identified for 2019 and Analysis Budget % Change Approved Budget 32,036,063 Plus 2019 General Inflationary Increases 693, % Plus (Less) 2019 Significant Changes: Prior year one time costs and carryovers (1,807,083) Beautification Fund combination impacts - Aubrey Davis Park maintenance 571,730 - Intergovernmental (MI Chamber & Pool Operations, B&O Tax admin) 171,083 - Town Center beautification (medians, planters, holiday lights) 169,665 - Commuter Parking proffessional services 25,000 Liability & property insurance costs 174,132 IT rental rates 97,265 Utility costs (PSE, water, sewer, storm, dumping & phones) 85,321 Election costs 49,000 Fleet rental rates 439 NORCOM (Police and Fire dispatch) costs (50,606) LEOFF1 retiree medical costs (97,153) Eliminate transfer to Water Fund (percentage of utility tax) (147,000) Subtotal (758,207) -2.4% 2019 Base Budget 31,970, % 2019 Service Packages: Total one-time costs 922,077 Total ongoing costs 61,572 Total one-time savings - Total ongoing savings (390,489) Subtotal 593, % 2019 Final Budget 32,564, % City of Mercer Island Budget E-7

10 Budget Analysis 2020 Analysis Budget % Change Final Budget 32,564,082 Plus 2020 General Inflationary Increases 895, % Plus (Less) 2020 Significant Changes: Prior year one time costs and carryovers (525,000) NORCOM (Police and Fire dispatch) costs 36,030 Liability & property insurance costs 35,822 LEOFF1 retiree medical costs 18,527 Election costs (36,000) Subtotal (470,621) -1.4% 2020 Base Budget 32,989, % 2020 Service Packages: Total one-time costs 190,000 Total ongoing costs - Total one-time savings - Total ongoing savings (215,030) Subtotal (25,030) -0.1% 2020 Final Budget 32,964, % E-8 City of Mercer Island Budget

11 SELF-INSURANCE CLAIM RESERVE 037 Recap by Fund The Self-Insurance Claim Reserve Fund accounts for payments of deductibles ($5,000 per claim) and insurance claims not covered under the City s property insurance policy through the Washington Cities Insurance Authority (WCIA). Mercer Island Municipal code section sets the minimum balance of this fund at $40,000. Any expenditures from this fund for physical loss to property would be reimbursed to the fund through insurance recoveries. RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ - $ - $ - $ - N/A N/A General Govt / Grants / Fines N/A N/A Insurance Recoveries - 10,000 10,000 10, % 0.0% Total Resources $ - $ 10,000 $ 10,000 $ 10, % 0.0% Not Beginning Fund Balance (Reserved) 109, , , , % 0.0% TOTAL RESOURCES $ 109,750 $ 119,750 $ 119,750 $ 119, % 0.0% USES Repairs & Maintenance $ - $ 10,000 $ 10,000 $ 10, % 0.0% Total Expenditures $ - $ 10,000 $ 10,000 $ 10, % 0.0% Not Percent Change Ending Fund Balance 109, , , , % 0.0% TOTAL USES $ 109,750 $ 119,750 $ 119,750 $ 119, % 0.0% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 109,750 $ 109,750 $ 109,750 $ 109,750 Plus Revenues - 10,000 10,000 10,000 Less Expenditures - (10,000) (10,000) (10,000) Ending Fund Balance $ 109,750 $ 109,750 $ 109,750 $ 109,750 Consisting of: Self Insurance Reserve 109, , , ,750 Ending Fund Balance $ 109,750 $ 109,750 $ 109,750 $ 109,750 City of Mercer Island Budget E-9

12 Operating Budget Analysis A summary analysis follows comparing the 2018 Approved Budget to the Final Budget, broken down by year, with Significant Changes and Service Packages separately identified for 2019 and Analysis Budget % Change Approved Budget 10,000 Plus 2019 General Inflationary Increases - 0.0% Plus (Less) 2019 Significant Changes: None - Subtotal - 0.0% 2019 Base Budget 10, % 2019 Service Package Requests: None - Subtotal - 0.0% 2019 Final Budget 10, % 2020 Analysis Budget % Change Final Budget 10,000 Plus 2020 General Inflationary Increases - 0.0% Plus (Less) 2020 Significant Changes: None - Subtotal - 0.0% 2020 Base Budget 10, % 2020 Service Package Requests: None - Subtotal - 0.0% 2020 Final Budget 10, % E-10 City of Mercer Island Budget

13 YOUTH SERVICES ENDOWMENT 061 Recap by Fund The City established the Youth Services Endowment Fund as a long-term funding mechanism for the programs of the Youth and Family Services Department. The donated funds remain invested as principal and cannot be used for ongoing operations. Interest earnings from this permanent endowment fund are used to support Youth and Family Services operations, which are accounted for in the Youth and Family Services Fund. RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ - $ - $ - $ - N/A N/A Interest 2,860 3,500 3,500 3, % 0.0% Total Resources $ 2,860 $ 3,500 $ 3,500 $ 3, % 0.0% Not Beginning Fund Balance (Reserved) 310, , , , % 0.0% TOTAL RESOURCES $ 313,560 $ 316,560 $ 316,560 $ 316, % 0.0% USES Interfund Transfer - YFS Fund $ 500 $ 3,500 $ 3,500 $ 3, % 0.0% Total Expenditures $ 500 $ 3,500 $ 3,500 $ 3, % 0.0% Not Percent Change Ending Fund Balance 313, , , , % 0.0% TOTAL USES $ 313,560 $ 316,560 $ 316,560 $ 316, % 0.0% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 310,700 $ 313,060 $ 313,060 $ 313,060 Plus Revenues 2,860 3,500 3,500 3,500 Less Expenditures (500) (3,500) (3,500) (3,500) Ending Fund Balance $ 313,060 $ 313,060 $ 313,060 $ 313,060 Consisting of: Non-spendable Endowment Principal 285, , , ,856 Unreserved 27,204 27,204 27,204 27,204 Ending Fund Balance $ 313,060 $ 313,060 $ 313,060 $ 313,060 City of Mercer Island Budget E-11

14 Operating Budget Analysis A summary analysis follows comparing the 2018 Approved Budget to the Final Budget, broken down by year, with Significant Changes and Service Packages separately identified for 2019 and Analysis Budget % Change Approved Budget 3,500 Plus 2019 General Inflationary Increases - 0.0% Plus (Less) 2019 Significant Changes: None - Subtotal - 0.0% 2019 Base Budget 3, % 2019 Service Package Requests: None - Subtotal - 0.0% 2019 Final Budget 3, % 2020 Analysis Budget % Change Final Budget 3,500 Plus 2020 General Inflationary Increases - 0.0% Plus (Less) 2020 Significant Changes: None - Subtotal - 0.0% 2020 Base Budget 3, % 2020 Service Package Requests: None - Subtotal - 0.0% 2020 Final Budget 3, % E-12 City of Mercer Island Budget

15 SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. The City of Mercer Island has six Special Revenue Funds. They are the City Street Fund, the Transportation Benefit District Fund, the Criminal Justice Fund, the Beautification Fund, the Contingency Fund, the 1% for the Arts Fund, and the Youth & Family Services Fund.

16 E-14 City of Mercer Island Budget

17 STREET FUND 104 The Street Fund is a restricted fund that accounts for revenues and expenditures for street maintenance and construction. Major sources of revenue include Real Estate Excise Tax, Fuel Tax and Federal and State Grants. Expenditures for street maintenance include seal coating, crack sealing, pavement marking, minor patching, and thin asphalt overlays. See budget Section G CIP for additional detail on Street Fund expenditures. RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ - $ 2,340,328 $ 561,888 $ % % Real Estate Excise Tax 2,845,340 1,884,000 1,757,700 1,823, % 3.7% Motor Vehicle Fuel Tax 538, , , , % -2.3% General Govt / Grants / Fines 344,690 1,197, , , % 50.1% Vehicle Excise Tax , ,000 N/A 0.0% Interfund Transfers In 467, , % N/A Total Resources $ 4,196,169 $ 6,406,276 $ 3,567,588 $ 3,235, % -9.3% Not Beginning Fund Balance (Reserved) 3,891,184 2,961,935 2,400,047 2,400, % 0.0% TOTAL RESOURCES $ 8,087,353 $ 9,368,211 $ 5,967,635 $ 5,635, % -5.6% USES Residential Street Preservation $ 1,145,450 $ 551,902 $ 880,000 $ 564, % -35.9% Arterial Street Improvements 233,907 2,944,582 1,231, , % -51.7% Pedestrian & Bicycle Facilities 671, , , , % 86.4% Other Transportation Projects 67, , , , % 135.7% Other Transportation Activities 591, , , , % 1.8% Interfund Transfer 74,870 1,262,840 85, % % Total Expenditures $ 2,785,090 $ 6,406,276 $ 3,567,588 $ 3,210, % -10.0% Not Percent Change Ending Fund Balance 5,302,263 2,961,935 2,400,047 2,425, % 1.1% TOTAL USES $ 8,087,353 $ 9,368,211 $ 5,967,635 $ 5,635, % -5.6% City of Mercer Island Budget E-15

18 2019 Resources Street Fund State Shared Revenues 23% Impact Fees, 2% Beginning Fund Balance 16% Vehicle Excise Tax, 10% Real Estate Excise Tax (REET) 49% 2020 Resources Street Fund Impact Fees 2% Vehicle Excise Tax 12% State Shared Revenues 30% Real Estate Excise Tax (REET) 56% E-16 City of Mercer Island Budget

19 Expenditure Summary Presented in the table below are expenditures by category for , followed by two pie charts depicting the percentage of each category relative to total budgeted expenditures in 2019 and USES Percent Change Description Actual Forecast Budget Budget Salaries and Wages $ 160,799 $ 181,523 $ 211,083 $ 216, % 2.7% Benefits 60,802 71,193 78,577 81, % 3.3% Supplies 1,873 1, % 0.0% Contractual Services 77, , , , % 0.0% Equipment Rental 2,581 2,595 3,413 3, % 0.9% Communications % 0.0% Other Services and Charges ,800 18,300 18,300 3% 0.0% Capital Program 2,406,319 4,683,365 2,976,355 2,695, % -9.4% Interfund Transfers 74,870 1,262,840 85, % % Total Expenditures $ 2,785,090 $ 6,406,276 $ 3,567,588 $ 3,210, % -10.0% Not N/A N/A Ending Fund Balance 5,302,263 2,961,935 2,400,047 2,425, % 1.1% TOTAL USES $ 8,087,353 $ 9,368,211 $ 5,967,635 $ 5,635, % -5.6% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 3,891,184 $ 5,302,263 $ 2,961,935 $ 2,400,047 Plus Revenues 4,196,169 4,065,948 3,005,700 3,235,400 Less Expenditures (2,785,090) (6,406,276) (3,567,588) (3,210,098) Ending Fund Balance $ 5,302,263 $ 2,961,935 $ 2,400,047 $ 2,425,349 Consisting of: Town Center street (north) reserve 99,684 99,684 99,684 99,684 Appropriated for Expenditures Next Year 2,340, , Working Capital Reserve 200, , , ,000 84th Ave SE Trail project 22,573 22,573 22,573 22,573 Transportation Impact Fees 155, , , ,979 Unreserved 2,483,699 1,921,811 1,921,811 1,947,113 Ending Fund Balance $ 5,302,263 $ 2,961,935 $ 2,400,047 $ 2,425,349 City of Mercer Island Budget E-17

20 2019 Uses Street Fund Interfund Transfers 2% Salaries and Wages 6% Benefits 2% Contractual Services 5% Other Services and Charges 1% Capital Program 84% 2020 Uses Street Fund Salaries and Wages 7% Benefits 2% Contract Services 3% Other Services and Charges 1% Capital Program 84% E-18 City of Mercer Island Budget

21 Operating Budget Analysis Recap by Fund A summary analysis follows comparing the 2018 Approved Budget to the Final Budget, broken down by year, with Significant Changes and Service Packages separately identified for 2019 and This analysis excludes Capital Improvement Program costs, focusing on operating costs only Analysis Budget % Change Approved Budget 460,071 Plus 2019 General Inflationary Increases 22, % Plus (Less) 2019 Significant Changes: Prior year one-time costs and carryovers (49,000) Pavement marking (reclass from capital program) 72,424 Subtotal 23, % 2019 Base Budget 506, % 2019 Service Package Requests: None - Subtotal - 0.0% 2019 Final Budget 506, % 2020 Analysis Budget % Change Final Budget 506,233 Plus 2020 General Inflationary Increases 8, % Plus (Less) 2020 Significant Changes: None - Subtotal - 0.0% 2020 Base Budget 514, % 2020 Service Package Requests: None - Subtotal - 0.0% 2020 Final Budget 514, % City of Mercer Island Budget E-19

22 E-20 City of Mercer Island Budget

23 TRANSPORTATION BENEFIT DISTRICT FUND 108 Recap by Fund The Mercer Island Transportation Benefit District was formed by the City Council on November 17, The purpose of the District is to fund the maintenance, improvement, and preservation of existing transportation facilities. The District is funded by a $20.00 excise tax on all vehicles registered within the City of Mercer Island. Per contract terms, the Washington State Department of Licensing began collecting the vehicle excise tax in May Beginning January 1, 2018, the Transportation Benefit District will be accounted for in the Street Fund. RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ - $ 57,366 $ - $ % N/A Vehicle Excise Tax 374, , % N/A Total Resources $ 374,736 $ 432,366 $ - $ % N/A Not Beginning Fund Balance (Reserved) 32, N/A N/A TOTAL RESOURCES $ 407,366 $ 432,366 $ - $ % N/A USES Contractual Services N/A N/A Interfund Transfer - to Street Fund 350, , % N/A Total Expenditures $ 350,000 $ 432,366 $ - $ % N/A Not Percent Change Ending Fund Balance 57, N/A N/A TOTAL USES $ 407,366 $ 432,366 $ - $ % N/A Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 32,630 $ 57,366 $ - $ - Plus Revenues 374, , Less Expenditures (350,000) (432,366) - - Ending Fund Balance $ 57,366 $ - $ - $ - Consisting of: Unreserved 57, Ending Fund Balance $ 57,366 $ - $ - $ - City of Mercer Island Budget E-21

24 E-22 City of Mercer Island Budget

25 CRIMINAL JUSTICE FUND 112 The Criminal Justice Fund was created in 1990 to account for new funding being provided through the passage of Senate Bill 6913 for criminal justice needs. In September 1992, King County voters approved an additional 0.1% sales tax for criminal justice purposes. These revenues can only be spent on criminal justice operating and equipment costs. Legislative changes which removed non-supplanting language from the restrictions on how the 0.1% sales tax could be used allowed the City to account for these revenues and expenditures within the General Fund. The Criminal Justice Special Revenue fund was closed effective January 1, RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ 1,100,614 $ - $ - $ - N/A N/A Total Resources $ 1,100,614 $ - $ - $ - N/A N/A Not Beginning Fund Balance (Reserved) N/A N/A TOTAL RESOURCES $ 1,100,614 $ - $ - $ - N/A N/A USES Fund Transfer - General Fund 1,100, N/A N/A Total Expenditures $ 1,100,614 $ - $ - $ - N/A N/A Not Percent Change Ending Fund Balance N/A N/A TOTAL USES $ 1,100,614 $ - $ - $ - N/A N/A City of Mercer Island Budget E-23

26 E-24 City of Mercer Island Budget

27 BEAUTIFICATION FUND 117 The Beautification Fund was created in 1980 by Council ordinance. The ordinance commits the business and occupation tax to expenditures for: the installation and maintenance of landscaping; acquisition, operation, and maintenance of any building or property for park, recreation, and open space purposes; undergrounding of power lines; operation and maintenance of lighting facilities; support for a central business district revitalization program; acquisition and leasing of parking spaces; and enforcement of parking restrictions. The Budget assumes the Council will adopt an ordinance removing the restrictions on use of the Mercer Island business and Occupation tax. The revenues and expenditures accounted in the Beautification fund will be moved to the General fund effective January 1, RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ - $ 1,340,698 $ - $ % N/A Business and Occupation Tax 617, , % N/A Permit Parking Program 6,650 3, % N/A Landscaping Services (WSDOT) 503, , % N/A Federal, State & Local Grants 23,480 23, % N/A Other Services and Charges N/A N/A Total Resources $ 1,151,675 $ 2,510,337 $ - $ % N/A Not Beginning Fund Balance (Reserved) 1,108, N/A N/A TOTAL RESOURCES $ 2,260,383 $ 2,510,337 $ - $ % N/A USES Chamber of Commerce $ 14,400 $ 14,400 $ - $ % N/A Financial Services \ Parking Program 9,179 16, % N/A Town Center Beautification 148, , % N/A Mary Wayte Pool Operations 130, , % N/A I-90 Landscape Maintenance 571, , % N/A Commuter Parking - 56, % N/A Light Rail Station Planning - 50, % N/A Interfund Transfer - CIP 45, , % N/A Interfund Transfer - Contingency - 205, % N/A Interfund Transfer - General Fund - 1,054, % N/A Total Expenditures $ 919,685 $ 2,510,337 $ - $ % N/A Not Percent Change Ending Fund Balance 1,340, N/A N/A TOTAL USES $ 2,260,383 $ 2,510,337 $ - $ % N/A City of Mercer Island Budget E-25

28 Expenditure Summary Presented in the table below are expenditures by category for USES Description Actual Forecast Budget Budget Salaries and Wages $ 265,875 $ 268,842 $ - $ % N/A Benefits 101, , % N/A Supplies 50,312 57, % N/A Contractual Services 97, , % N/A Equipment Rental 29,136 29, % N/A Utilities & Insurance 196, , % N/A Other Services and Charges 3,518 5, % N/A Intergovernmental 130, , % N/A Capital Program - 50, % N/A Interfund Transfers 45,000 1,428, % N/A Total Expenditures $ 919,685 $ 2,510,337 $ - $ % N/A Not Percent Change Ending Fund Balance 1,340, N/A N/A TOTAL USES $ 2,260,383 $ 2,510,337 $ - $ % N/A Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 1,108,708 $ 1,340,698 $ - $ - Plus Revenues 1,151,675 1,169, Less Expenditures (919,685) (2,510,337) - - Ending Fund Balance $ 1,340,698 $ - $ - $ - Consisting of: Funding for Expenditures Next Year 1,265, Working Capital Reserve 75, Unreserved Ending Fund Balance $ 1,340,698 $ - $ - $ - E-26 City of Mercer Island Budget

29 CONTINGENCY FUND 130 The Contingency Fund accounts for resources that can only be used to address one of the following unanticipated situations in the General Fund or other general government operating fund: 1) a significant revenue shortfall; 2) a significant, non-recurring, expenditure; and 3) a significant increase in service delivery costs. Absent voter approval of a November 2018 levy lid lift ballot measure, the target funding level is 1.5 months (or 12.5%) of General Fund budgeted expenditures, capped by state law at 37.5 cents per $1,000 of the City s total assessed valuation. RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ - $ - $ 1,035,704 $ - N/A % Business and Occupation Tax 279, , % N/A Interest 194, , , , % 0.0% Interfund Transfers 1,035, , % N/A Total Resources $ 1,510,455 $ 1,530,942 $ 1,356,278 $ 320, % -76.4% Not Beginning Fund Balance (Reserved) 2,629,429 3,439,884 3,935,122 4,255, % 8.1% TOTAL RESOURCES $ 4,139,884 $ 4,970,826 $ 5,291,400 $ 4,576, % -13.5% USES Interfund Transfers - General Fund $ 700,000 $ - $ 1,035,704 $ - N/A % Total Expenditures $ 700,000 $ - $ 1,035,704 $ - N/A % Not Percent Change Ending Fund Balance 3,439,884 4,970,826 4,255,696 4,576, % 7.5% TOTAL USES $ 4,139,884 $ 4,970,826 $ 5,291,400 $ 4,576, % -13.5% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 2,629,429 $ 3,439,884 $ 4,970,826 $ 4,255,696 Plus Revenues 1,510,455 1,530, , ,574 Less Expenditures (700,000) - (1,035,704) - Ending Fund Balance $ 3,439,884 $ 4,970,826 $ 4,255,696 $ 4,576,270 Consisting of: Contingency Reserve-(City Policy) 2,404,180 3,935,122 4,255,696 4,576, Operating Reserve 1,035,704 1,035, Ending Fund Balance $ 3,439,884 $ 4,970,826 $ 4,255,696 $ 4,576,270 City of Mercer Island Budget E-27

30 E-28 City of Mercer Island Budget

31 1% FOR THE ARTS FUND 140 The 1% For the Arts Fund accounts for the 1% contribution from Capital Improvement Program (CIP) projects, excluding utilities, technology and equipment. This revenue source can only be used to purchase, install, and maintain art in public places. RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ - $ 59,251 $ - $ % N/A One Percent for Arts 35,435 20,000 19,000 17, % -10.5% Total Resources $ 35,435 $ 79,251 $ 19,000 $ 17, % -10.5% Not Beginning Fund Balance (Reserved) 178, , , , % 2.7% TOTAL RESOURCES $ 214,362 $ 227,200 $ 166,949 $ 168, % 1.2% USES Public Art Maintenance $ 7,162 $ 22,837 $ 15,000 $ 15, % 0.0% Town Center Banner Art - 26, % N/A Mural at I90 and WMW On-Ramp - 29, % N/A Interfund Transfers Out N/A N/A Total Expenditures $ 7,162 $ 79,251 $ 15,000 $ 15, % 0.0% Not Percent Change Ending Fund Balance 207, , , , % 1.3% TOTAL USES $ 214,362 $ 227,200 $ 166,949 $ 168, % 1.2% City of Mercer Island Budget E-29

32 2019 Resources 1% for the Arts Fund 1% for Arts 100% 2020 Resources 1% for the Arts Fund 1% for Arts 100% E-30 City of Mercer Island Budget

33 Expenditure Summary Presented in the table below are expenditures by category for , followed by two pie charts depicting the percentage of each category relative to total budgeted expenditures in 2019 and USES Description Actual Forecast Budget Budget Salaries and Wages $ - $ - $ - $ - N/A N/A Benefits N/A N/A Supplies N/A N/A Contractual Services 7,162 22,837 15,000 15, % 0.0% Equipment Rental N/A N/A Other Services and Charges N/A N/A Capital Program - 56, % N/A Interfund Transfers N/A N/A Total Expenditures $ 7,162 $ 79,251 $ 15,000 $ 15, % 0.0% Not Percent Change Ending Fund Balance 207, , , , % 1.3% TOTAL USES $ 214,362 $ 227,200 $ 166,949 $ 168, % 1.2% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 178,927 $ 207,200 $ 147,949 $ 151,949 Plus Revenues 35,435 20,000 19,000 17,000 Less Expenditures (7,162) (79,251) (15,000) (15,000) Ending Fund Balance $ 207,200 $ 147,949 $ 151,949 $ 153,949 Consisting of: Funding for Expenditures Next Year 59, Art in public places reserve 147, , , ,949 Ending Fund Balance $ 207,200 $ 147,949 $ 151,949 $ 153,949 City of Mercer Island Budget E-31

34 2019 Uses 1% for the Arts Fund Contractual Services, 100% 2020 Uses 1% for the Arts Fund Contract Services 100% E-32 City of Mercer Island Budget

35 Operating Budget Analysis Recap by Fund A summary analysis follows comparing the 2018 Approved Budget to the Final Budget, broken down by year, with Significant Changes and Service Packages separately identified for 2019 and This analysis excludes Capital Improvement Program costs, focusing on operating costs only Analysis Budget % Change Approved Budget 22,837 Plus 2019 General Inflationary Increases - 0.0% Plus (Less) 2019 Significant Changes: Prior year one time costs and carryovers (7,837) Subtotal (7,837) -34.3% 2019 Base Budget 15, % 2019 Service Package Requests: None - Subtotal - 0.0% 2019 Final Budget 15, % 2020 Analysis Budget % Change Final Budget 15,000 Plus 2020 General Inflationary Increases - 0.0% Plus (Less) 2020 Significant Changes: None - Subtotal - 0.0% 2020 Base Budget 15, % 2020 Service Package Requests: None - Subtotal - 0.0% 2020 Final Budget 15, % City of Mercer Island Budget E-33

36 E-34 City of Mercer Island Budget

37 YOUTH & FAMILY SERVICES FUND 160 The Youth & Family Services Fund was created to account for all revenues and expenditures directly related to the Youth & Family Services (YFS) Department. These programs include the VOICE Program, Thrift Shop operations, Family Counseling, Emergency Assistance, Job-line, and the School Counselors. YFS is largely supported by Thrift Shop sales, donations, grants, and an annual subsidy from the General Fund. RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ - $ 139,505 $ 61,798 $ % % Federal, State & Local Grants 183,406 44,000 41,000 41, % 0.0% School Counselor Program Support 60,000 60,000 60,000 60, % 0.0% Thrift Shop 1,607,692 1,736,307 1,857,849 1,969, % 6.0% YFS Fees 136, , , , % -3.6% Donations 66,241 58,500 60,500 60, % 0.0% MIYFS Foundation Support 202, , , , % 0.6% Interfund Transfer - YFS Endowment 500 3,500 3,500 3, % 0.0% Interfund Transfer - General Fund 459, , , , % 0.0% Total Resources $ 2,715,433 $ 2,974,623 $ 2,916,274 $ 2,962, % 1.6% Not Beginning Fund Balance (Reserved) 173,020 97,509 35,711 35, % 0.0% TOTAL RESOURCES $ 2,888,453 $ 3,072,132 $ 2,951,985 $ 2,998, % 1.6% USES YFS Administration $ 627,083 $ 748,898 $ 715,482 $ 733, % 2.5% Thrift Shop 675, , , , % 2.8% School Counselor Program 607, , , , % -11.4% Senior Outreach 98, ,856 53,511 54, % 2.5% VOICE Program 110, , , , % 2.3% Jobline 48,061 51,945 25,499 26, % 2.8% Family Counseling & Assistance 294, , , , % 2.3% Healty Youth 169,394 70,089 42,887 44, % 2.7% Interfund Transfers - CIP 19,566 62,434 60,000 91, % 51.7% Total Expenditures $ 2,651,439 $ 2,974,623 $ 2,916,274 $ 2,935, % 0.6% Not Percent Change Ending Fund Balance 237,014 97,509 35,711 63, % 77.5% TOTAL USES $ 2,888,453 $ 3,072,132 $ 2,951,985 $ 2,998, % 1.6% City of Mercer Island Budget E-35

38 2019 Resources YFS Fund MIYFS Foundation Support 10% Interfund Transfer - General Fund 14% Beginning Fund Balance 2% KC Grant Revenue 1% School Counselor Program Support 2% Donations 2% Program Fees 5% Thrift Shop 64% 2020 Resources YFS Fund MIYFS Foundation Support 10% Interfund Transfer - General Fund 14% KC Grant Revenue 1% School Counselor Program Support 2% Donations 2% Program Fees 5% Thrift Shop 66% E-36 City of Mercer Island Budget

39 Expenditure Summary Presented in the table below are expenditures by category for , followed by two pie charts depicting the percentage of each category relative to total budgeted expenditures in 2019 and USES Description Actual Forecast Budget Budget Salaries and Wages $ 1,514,124 $ 1,748,199 $ 1,704,786 $ 1,690, % -0.8% Benefits 657, , , , % -0.8% Supplies 71,012 65,085 70,925 71, % 1.0% Contractual Services 150, , , , % 3.5% Equipment Rental 113, , , , % 2.0% Utilities & Insurance 14,157 16,019 16,024 16, % 0.0% Other Services and Charges 103,939 96,650 95,175 95, % -0.1% Intergovernmental 7,496 7,058 8,806 9, % 6.0% Interfund Transfers 19,566 62,434 60,000 91, % 51.7% Total Expenditures $ 2,651,439 $ 2,974,623 $ 2,916,274 $ 2,935, % 0.6% Not Percent Change Ending Fund Balance 237,014 97,509 35,711 63, % 77.5% TOTAL USES $ 2,888,453 $ 3,072,132 $ 2,951,985 $ 2,998, % 1.6% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 173,020 $ 237,014 $ 97,509 $ 35,711 Plus Revenues 2,715,433 2,835,118 2,854,476 2,962,835 Less Expenditures (2,651,439) (2,974,623) (2,916,274) (2,935,145) Ending Fund Balance $ 237,014 $ 97,509 $ 35,711 $ 63,401 Consisting of: Funding for Expenditures Next Year 139,505 61, Working Capital Reserve 75,000 75,000 75,000 75,000 Unreserved 22,509 (39,289) (39,289) (11,599) Ending Fund Balance $ 237,014 $ 97,509 $ 35,711 $ 63,401 City of Mercer Island Budget E-37

40 2019 Uses YFS Fund Utilities & Insurance 1% Equipment Rental 4% Contract Services 4% Supplies 2% Other Services and Charges 3% Interfund Transfers 2% Benefits 25% Salaries 59% 2020 Uses YFS Fund Equipment Rental 4% Other Services and Charges 3% Interfund Transfers 3% Contract Services 4% Supplies 2% Benefits 25% Salaries 58% E-38 City of Mercer Island Budget

41 Operating Budget Analysis Recap by Fund A summary analysis follows comparing the 2018 Approved Budget to the Final Budget, broken down by year, with Significant Changes and Service Packages separately identified for 2019 and This analysis excludes Capital Improvement Program costs, focusing on operating costs only Analysis Budget % Change Approved Budget 2,974,623 Plus 2019 General Inflationary Increases 38, % Plus (Less) 2019 Significant Changes: Prior year one time costs and carryovers (91,500) Additional Thrift Shop contract salary and benefits (2.0 FTE) 113,532 IT maintenance and operations 3,660 Fleet maintenance and operations (2,466) Subtotal 23, % 2019 Base Budget 3,036, % 2019 Service Package Requests: Reduce Geriatric Specialist (0.50 FTE) (53,110) Reduce Adminstrative Assisstant (0.50 FTE) (32,920) Reduce Elementary School Counselor (0.33 FTE) (33,976) Subtotal (120,006) -4.0% 2019 Final Budget 2,916, % 2020 Analysis Budget % Change Final Budget 2,916,274 Plus 2020 General Inflationary Increases 76, % Plus (Less) 2020 Significant Changes: Transfer to CIP - Thrift Shop capital maintenance 31,000 Subtotal 31, % 2020 Base Budget 3,023, % 2020 Service Package Requests: Reduce Elementary School Counselor (0.83 FTE) (88,415) Subtotal (88,415) -3.0% 2020 Final Budget 2,935, % City of Mercer Island Budget E-39

42 E-40 City of Mercer Island Budget

43 DEBT SERVICE FUNDS Debt Service Funds account for the accumulation of resources for the payment of principal and interest on general obligation bonds. General obligation bonds are those for which the full faith and credit of the City are pledged. They are payable from property taxes. The dollar amount of outstanding bond debt is shown in Section C (Budget Summary). The City of Mercer Island has two Debt Service Funds: the Bond Redemption Fund Voted, and the Bond Redemption Fund Non-Voted.

44 E-42 City of Mercer Island Budget

45 BOND REDEMPTION FUND (VOTED) 208 This fund accounts for excess (i.e. voted bond) property tax levies that are dedicated to paying the debt service (i.e. principal and interest) on unlimited tax general obligation (UTGO) bonds. See Debt Financing policy in Section H (Budget Policies) and the Schedule of Long Term Debt in Section C (Budget Summary) for bond maturities and interest rates. RESOURCES Description Actual Forecast Budget Budget N/A N/A Beginning Fund Balance $ - $ - $ - $ - N/A N/A Property Tax - Lid Lift N/A N/A Total Resources $ - $ - $ - $ - N/A N/A Not Beginning Fund Balance (Reserved) 18,943 18,943 18,943 18, % 0.0% TOTAL RESOURCES $ 18,943 $ 18,943 $ 18,943 $ 18, % 0.0% USES Principal - Voted $ - $ - $ - $ - N/A N/A Interest - Voted N/A N/A Total Expenditures $ - $ - $ - $ - N/A N/A Not Percent Change Ending Fund Balance 18,943 18,943 18,943 18, % 0.0% TOTAL USES $ 18,943 $ 18,943 $ 18,943 $ 18, % 0.0% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 18,943 $ 18,943 $ 18,943 $ 18,943 Plus Revenues Less Expenditures Ending Fund Balance $ 18,943 $ 18,943 $ 18,943 $ 18,943 Consisting of: Funding for Expenditures Next Year Debt Service Reserve 18,943 18,943 18,943 18,943 Ending Fund Balance $ 18,943 $ 18,943 $ 18,943 $ 18,943 City of Mercer Island Budget E-43

46 E-44 City of Mercer Island Budget

47 BOND REDEMPTION FUND (NON-VOTED) 239 This fund accounts for revenues that are dedicated to paying the debt service (i.e. principal and interest) on limited (i.e. non-voted) general obligation (LTGO) bonds. See Debt Financing policy in Section H (Budget Policies) and the Schedule of Long Term Debt in Section C (Budget Summary) for additional information. RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ - $ - $ - $ - N/A N/A Property Tax-Lid Lift 618, , , , % -0.3% Interfund Transfer In 395, , , , % -0.2% Total Resources $ 1,013,782 $ 847,159 $ 841,800 $ 839, % -0.2% Not Beginning Fund Balance (Reserved) 5,038 5,038 5,038 5, % 0.0% TOTAL RESOURCES $ 1,018,820 $ 852,197 $ 846,838 $ 844, % -0.2% USES Debt Payments Mercerview Property $ 158,100 $ - $ - $ - N/A N/A MICEC Building 137, , , , % -1.8% South Mercer Playfields 99,682 94,759 88,200 90, % 2.3% Fire Station , , , , % -0.3% Total Expenditures $ 1,013,782 $ 847,159 $ 841,800 $ 839, % -0.2% Not Percent Change Ending Fund Balance 5,038 5,038 5,038 5, % 0.0% TOTAL USES $ 1,018,820 $ 852,197 $ 846,838 $ 844, % -0.2% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 5,038 $ 5,038 $ 5,038 $ 5,038 Plus Revenues 1,013, , , ,700 Less Expenditures (1,013,782) (847,159) (841,800) (839,700) Ending Fund Balance $ 5,038 $ 5,038 $ 5,038 $ 5,038 Consisting of: Debt Service Reserve 5,038 5,038 5,038 5,038 Ending Fund Balance $ 5,038 $ 5,038 $ 5,038 $ 5,038 City of Mercer Island Budget E-45

48 Governmental Debt Outstanding INTEREST PRINCIPAL $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ ,500,000 Governmental Debt Service Funding ,000,000 $3,081,500 2,500,000 2,000,000 1,500,000 Fire Station Levy Lid Lift Real Estate Excise Tax (Interfund Transfer In) 1,000,000 $1,126,600 General Fund Tax Revenue (Interfund Transfer In) 500,000 $550,822 - E-46 City of Mercer Island Budget

49 CAPITAL PROJECT FUNDS Capital Project Funds account for financial resources to be used for the acquisition or construction of capital facilities other than those financed by enterprise or internal service funds. The City of Mercer Island has four Capital Project Funds. The Town Center Parking Facilities Fund, the Capital Improvement Fund, the Technology & Equipment Fund, and the Capital Reserve Fund.

50 E-48 City of Mercer Island Budget

51 TOWN CENTER PARKING FACILITES FUND 342 Recap by Fund The Town Center Parking Facilities Fund accounts for revenues and expenditures associated with purchasing or constructing parking facilities in the Town Center. The projects planned for 2019 and 2020 are described in detail in Section G (Capital Improvement Program). RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ - $ - $ 139,930 $ - N/A % Interfund Transfers - 2,365, % N/A Total Resources $ - $ 2,365,680 $ 139,930 $ % % Not Beginning Fund Balance (Reserved) N/A N/A TOTAL RESOURCES $ - $ 2,365,680 $ 139,930 $ % % USES Town Center Parking $ 2,225,750 $ 139,930 $ % % Total Expenditures $ - $ 2,225,750 $ 139,930 $ % % Not Percent Change Ending Fund Balance - 139, % N/A TOTAL USES $ - $ 2,365,680 $ 139,930 $ % % Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ - $ - $ 139,930 $ - Plus Revenues - 2,365, Less Expenditures - (2,225,750) (139,930) - Ending Fund Balance $ - $ 139,930 $ - $ - Consisting of: Funding for Expenditures Next Year Unreserved - 139, Ending Fund Balance $ - $ 139,930 $ - $ - City of Mercer Island Budget E-49

52 E-50 City of Mercer Island Budget

53 CAPITAL IMPROVEMENT FUND 343 Recap by Fund The Capital Improvement Fund accounts for revenues that can only be spent on the following types of general government capital projects: parks, open spaces and buildings. The projects planned for 2019 and 2020 are described in detail in Section G (Capital Improvement Program). RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ - $ 3,337,393 $ - $ % N/A Property Tax 352, , , , % -29.4% Real Estate Excise Tax 2,845,340 1,884,000 2,148,300 2,228, % 3.7% General Govt / Grants / Fines 1,223, , , , % -67.6% Interfund Transfer - Various 169,119 1,871, , , % 32.6% Total Resources $ 4,590,310 $ 7,812,752 $ 3,560,150 $ 2,940, % -17.4% Not Beginning Fund Balance (Reserved) 4,157,682 1,878,646 1,878,646 2,136, % 13.7% TOTAL RESOURCES $ 8,747,992 $ 9,691,398 $ 5,438,796 $ 5,076, % -6.7% USES N/A N/A Capital Replacement - Buildings $ 519,292 $ 1,318,316 $ 613,000 $ 743, % 21.2% Capital Replacement - Open Space 546, , , , % 4.0% Capital Replacement - Parks 403,776 2,273,435 1,467, , % -46.8% Capital Facilities - General Government 9,899 25, , , % 12.9% Capital Facilities - Parks 1,566, ,318 55, % % Project Management Expenses 189, , , , % 3.1% Debt Service CCMV 296, , , , % -1.8% Interfund Transfers Out - 2,365, % N/A Total Expenditures $ 3,531,953 $ 7,812,752 $ 3,302,556 $ 2,738, % -17.1% Not Percent Change Ending Fund Balance 5,216,039 1,878,646 2,136,240 2,337, % 9.4% TOTAL USES $ 8,747,992 $ 9,691,398 $ 5,438,796 $ 5,076, % -6.7% City of Mercer Island Budget E-51

54 2019 Resources Capital Improvement Fund General Government 0% Field Use Fees 3% Interfund Transfers In 3% Property Tax 10% Grants & Donations 23% REET 60% 2020 Resources Capital Improvement Fund General Government 6% Grants & Donations 0% Field Use Fees 3% Interfund Transfers In 5% Property Tax 9% REET 76% E-52 City of Mercer Island Budget

55 Expenditure Summary Presented in the table below are expenditures by category for , followed by two pie charts depicting the percentage of each category relative to total budgeted expenditures in 2019 and USES Description Actual Forecast Budget Budget Salaries and Wages $ - $ - $ - $ - N/A N/A Benefits N/A N/A Supplies N/A N/A Contractual Services N/A N/A Equipment Rental N/A N/A Capital Program 3,235,953 5,311,572 3,164,456 2,603, % -17.7% Debt Payments 296, , , , % -1.8% Interfund Transfers - 2,365, % N/A Total Expenditures $ 3,531,953 $ 7,812,752 $ 3,302,556 $ 2,738, % -17.1% Not Percent Change Ending Fund Balance 5,216,039 1,878,646 2,136,240 2,337, % 9.4% TOTAL USES $ 8,747,992 $ 9,691,398 $ 5,438,796 $ 5,076, % -6.7% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 4,157,682 $ 5,216,039 $ 1,878,646 $ 2,136,240 Plus Revenues 4,590,310 4,475,359 3,560,150 2,940,312 Less Expenditures (3,531,953) (7,812,752) (3,302,556) (2,738,745) Ending Fund Balance $ 5,216,039 $ 1,878,646 $ 2,136,240 $ 2,337,807 Consisting of: Funding for Expenditures Next Year 2,740, RCO Property sale proceeds 28,400 28,400 28,400 28,400 King Count Parks Levy reserve 20,786 20, Parks Impact Fee reserve 95, , , ,349 All Weather Field Repl Reserve 877,546 1,058,546 1,158,546 1,260,546 Working Capital Reserve 250, , , ,000 Unreserved 1,203, , , ,512 Ending Fund Balance $ 5,216,039 $ 1,878,646 $ 2,136,240 $ 2,337,807 City of Mercer Island Budget E-53

56 2017 Uses Capital Improvement Fund Debt Payments 4% Capital Program 96% 2018 Uses Capital Improvement Fund Debt Payments 5% Capital Program 95% E-54 City of Mercer Island Budget

57 TECHNOLOGY & EQUIPMENT FUND 345 The Technology & Equipment Fund accounts for revenues that can only be spent on the following types of general government capital projects and purchases: technology and new equipment, excluding fleet and computer replacements. An interfund transfer from the General Fund is the main revenue source for this fund. Other funds may contribute resources for specific projects when deemed appropriate. The projects planned for 2019 and 2020 are described in detail in Section G (Capital Improvement Program). RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ 26,381 $ 244,529 $ 264,500 $ 14, % -94.5% Contributions / Grants / Misc 39,418 2,500 2,500 2, % 0.0% Interfund Transfers 668, , , , % -41.1% Total Resources $ 733,874 $ 781,951 $ 810,000 $ 337, % -58.4% Not Beginning Fund Balance (Reserved) 630, , , , % -11.9% TOTAL RESOURCES $ 1,364,383 $ 1,167,932 $ 931,481 $ 443, % -52.3% USES Technology Improvements $ 566,873 $ 313,536 $ 363,000 $ 129, % -64.5% Fire Equipment 29, ,075 42,000 36, % -14.3% Police Equipment 15,446 43, MICEC Equipment 95,990 42,000 55,000 57, % 3.6% Other Small Technology & Equip 25,639 71, , , % -67.1% Interfund Transfers N/A N/A Total Expenditures $ 733,874 $ 781,951 $ 810,000 $ 337, % -58.4% Not Percent Change Ending Fund Balance 630, , , , % -11.9% TOTAL USES $ 1,364,383 $ 1,167,932 $ 931,481 $ 443, % -52.3% City of Mercer Island Budget E-55

58 2019 Resources Technology & Equipment Fund Beginning Fund Balance 33% General Government 0% Interfund Transfers In 67% 2020 Resources Technology & Equipment Fund Beginning Fund Balance 4% General Government 1% Interfund Transfers In 95% E-56 City of Mercer Island Budget

59 Expenditure Summary Presented in the table below are expenditures by category for , followed by two pie charts depicting the percentage of each category relative to total budgeted expenditures in 2019 and USES Description Actual Forecast Budget Budget Salaries and Wages $ - $ - $ - $ - N/A N/A Benefits N/A N/A Supplies N/A N/A Contractual Services N/A N/A Equipment Rental N/A N/A Capital Program 733, , , , % -58.4% Debt Payments N/A N/A Interfund Transfers N/A N/A Total Expenditures $ 733,874 $ 781,951 $ 810,000 $ 337, % -58.4% Not Percent Change Ending Fund Balance 630, , , , % -11.9% TOTAL USES $ 1,364,383 $ 1,167,932 $ 931,481 $ 443, % -52.3% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 656,890 $ 630,510 $ 385,981 $ 121,481 Plus Revenues 707, , , ,500 Less Expenditures (733,874) (781,951) (810,000) (337,000) Ending Fund Balance $ 630,510 $ 385,981 $ 121,481 $ 106,981 Consisting of: Federal and State seizure funds 97,514 53,814 53,814 53,814 MICEC Equipment Replacement Reserve 56,277 96, , ,777 Police In-car Cameral Replacement Reserve 60,000 72,000 21,000 33,000 Funding for Expenditures Next Year 320, ,500 14,500 - Working Capital Reserve 50,000 50,000 50,000 50,000 Unreserved 45,880 (151,110) (120,110) (135,610) Ending Fund Balance $ 630,510 $ 385,981 $ 121,481 $ 106,981 City of Mercer Island Budget E-57

60 2019 Uses Technology & Equipment Fund Capital Program 100% 2020 Uses Technology & Equipment Fund Capital Program 100% E-58 City of Mercer Island Budget

61 CAPITAL RESERVE FUND 350 The Capital Reserve Fund accounts for resources that are accumulated for any of the following purposes: 1) to fund future Capital Facilities Plan projects; 2) to cover unanticipated capital project costs; and 3) to establish a real estate excise tax (REET) contingency reserve in order to provide bridge funding when there is a downturn in the real estate market. RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ - $ - $ - $ - N/A N/A Interfund Transfer N/A N/A Total Resources $ - $ - $ - $ - N/A N/A Not Beginning Fund Balance (Reserved) 169, , , , % 0.0% TOTAL RESOURCES $ 169,999 $ 169,999 $ 169,999 $ 169, % 0.0% USES Capital Project Funding $ - $ - $ - $ - N/A N/A Total Expenditures $ - $ - $ - $ - N/A N/A Not Percent Change Ending Fund Balance 169, , , , % 0.0% TOTAL USES $ 169,999 $ 169,999 $ 169,999 $ 169, % 0.0% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 169,999 $ 169,999 $ 169,999 $ 169,999 Plus Revenues Less Expenditures Ending Fund Balance $ 169,999 $ 169,999 $ 169,999 $ 169,999 Consisting of: Unreserved 169, , , ,999 Ending Fund Balance $ 169,999 $ 169,999 $ 169,999 $ 169,999 City of Mercer Island Budget E-59

62 E-60 City of Mercer Island Budget

63 ENTERPRISE FUNDS Enterprise Funds account for government activities that are financed and operated in a manner similar to private business. Costs of providing services to the community are primarily financed by user fees. The City of Mercer Island has three Enterprise Funds: the Water Fund, Sewer Fund, and Storm Water Fund.

64 E-62 City of Mercer Island Budget

65 WATER FUND 402 Recap by Fund The Water Fund, which encompasses the City s water utility, accounts for all activities (i.e. administration, operations, maintenance, and capital investment) related to the provision of water services to the City s residential, commercial, and public customers. RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ - $ - $ 1,859,531 $ - N/A % Sales to Customers 7,923,464 7,287,935 7,264,836 7,661, % 5.5% Conservation Surcharge 35,248 20,000 20,000 20, % 0.0% Meter Install & Connection Fees 546, , , , % 2.9% Proceeds of Debt Issuance ,600,000 N/A N/A Interest Earnings 82, , , , % -17.6% Other Services and Charges 42,667 27,300 27,300 27, % 0.0% Interfund Trasfer In-Utility Tax 134, , % N/A Total Resources $ 8,764,006 $ 7,904,292 $ 9,557,767 $ 15,663, % 63.9% Not Beginning Fund Balance (Reserved) 7,863,859 10,511,512 8,694,866 8,694, % 0.0% TOTAL RESOURCES $ 16,627,865 $ 18,415,804 $ 18,252,633 $ 24,357, % 33.4% USES Maintenance and Operations $ 2,507,477 $ 2,480,617 $ 2,818,426 $ 2,824, % 0.2% Water Purchased for Resale 1,998,695 1,922,566 2,014,302 2,110, % 4.8% Debt Service 107, , , , % 567.9% City Administration 183, , , , % 2.9% Water System Improvements (CIP) 1,131,169 2,940,987 4,227,000 5,809, % 37.4% CIP Project Overhead 78,250 99,121 98, , % 2.6% Interfund Transfer - CIP 109, ,434 99,500 25, % -74.1% Total Expenditures $ 6,116,353 $ 7,861,407 $ 9,557,767 $ 11,797, % 23.4% Not Percent Change Ending Fund Balance 10,511,512 10,554,397 8,694,866 12,560, % 44.5% TOTAL USES $ 16,627,865 $ 18,415,804 $ 18,252,633 $ 24,357, % 33.4% City of Mercer Island Budget E-63

66 2019 Resources Water Fund General Government 0% Interest 2% Beginning Fund Balance 20% Sales to Customers (Utilities) 78% 2020 Resources Water Fund Interest 1% Debt Proceeds 49% Sales to Customers (Utilities) 50% E-64 City of Mercer Island Budget

67 Expenditure Summary Presented in the table below are expenditures by category for , followed by two pie charts depicting the percentage of each category relative to total budgeted expenditures in 2019 and USES Description Actual Forecast Budget Budget Salaries and Wages $ 908,355 $ 904,004 $ 986,646 $ 998, % 1.2% Benefits 383, , , , % 5.1% Supplies 217, , , , % -1.0% Water Purchased for Resale 1,998,695 1,922,566 2,014,302 2,110, % 4.8% Contractual Services 178, , , , % -13.0% Equipment Rental 149, , , , % 0.7% Insurance 121, , , , % 4.3% Utilities 78,873 58,740 82,030 84, % 2.7% Debt Service 107, , , , % 567.9% City Administration 183, , , , % 2.9% Other Services and Charges 470, , , , % 4.8% Water System Improvements (CIP) 1,131,169 2,940,987 4,227,000 5,809, % 37.4% CIP Project Overhead 78,250 99,121 98, , % 2.6% Interfund Transfer - CIP 109, ,434 99,500 25, % -74.1% Total Expenditures $ 6,116,353 $ 7,861,407 $ 9,557,767 $ 11,797, % 23.4% Not Percent Change Ending Fund Balance 10,511,512 10,554,397 8,694,866 12,560, % 44.5% TOTAL USES $ 16,627,865 $ 18,415,804 $ 18,252,633 $ 24,357, % 33.4% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Working Capital Balance $ 7,863,859 $ 10,511,512 $ 10,554,397 $ 8,694,866 Plus Revenues 8,764,006 7,904,292 7,698,236 15,663,090 Less Expenditures (6,116,353) (7,861,407) (9,557,767) (11,797,813) Ending Working Capital Balance $ 10,511,512 $ 10,554,397 $ 8,694,866 $ 12,560,143 Consisting of: Fiscal Policy Reserves 1,096,183 1,131,865 1,232,724 1,249,701 Capital Funding Reserve 408, , ,119 1,010,838 Funding for Expenditures Next Year - 1,859, Unreserved 9,006,996 6,759,383 6,570,023 10,299,604 Ending Working Capital Balance $ 10,511,512 $ 10,554,397 $ 8,694,866 $ 12,560,143 City of Mercer Island Budget E-65

68 2019 Uses Water Fund CIP Project Overhead 1% Salaries and Wages 11% Benefits 4% Water System Improvements (CIP) 44% Supplies 2% Water Purchased for Resale 21% Contract Services 2% Other Services and Charges 5% Equipment Rental 2% City Administration 2% Debt Service 1% Utilities 1% Insurance 1% 2020 Uses Water Fund CIP Project Overhead 1% Salaries and Wages 8% Benefits 3% Supplies 2% Water Purchased for Resale 18% Water System Improvements (CIP) 49% Contract Services 2% Other Services and Charges 4% Utilities 1% Equipment Rental 2% Insurance 1% City Administration 2% Debt Service 6% E-66 City of Mercer Island Budget

69 Operating Budget Analysis Recap by Fund A summary analysis follows comparing the 2018 Approved Budget to the Final Budget, broken down by year, with Significant Changes and Service Packages separately identified for 2019 and This analysis excludes Capital Improvement Program costs, focusing on operating costs only Analysis Budget % Change Approved Budget 4,701,866 Plus 2019 General Inflationary Increases 130, % Plus (Less) 2019 Significant Changes: Repair and Maintenance services 105,700 Water purchased for resale 91,736 IT operations and maintenance 34,912 Water service supplies 15,200 Fleet operations and maintenance 2,670 Subtotal 250, % 2019 Base Budget 5,082, % 2019 Service Package Requests: Water Rate Model 50,000 Subtotal 50, % 2019 Final Budget 5,132, % 2020 Analysis Budget % Change Final Budget 5,132,727 Plus 2020 General Inflationary Increases 11, % Plus (Less) 2020 Significant Changes: Water purchased for resale 95,860 Debt Service 621,422 Subtotal 717, % 2020 Base Budget 5,861, % 2020 Service Package Requests: None - Subtotal - 0.0% 2020 Final Budget 5,861, % City of Mercer Island Budget E-67

70 E-68 City of Mercer Island Budget

71 SEWER FUND 426 Recap by Fund The Sewer Fund, which encompasses the City s sewer utility, accounts for all activities (i.e. administration, operation, maintenance, and capital investment) related to the provision of sewer services to the City s residential, commercial, and public customers. RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ - $ 765,040 $ 449,052 $ % % Sales to Customers 9,139,674 9,307,765 9,761,556 10,052, % 3.0% Connection Fees 160,882 21,218 19,580 17, % -8.5% Proceeds of Debt Issuance ,600,000 N/A N/A Interest Earnings 40,466 85,916 80,162 71, % -11.2% Total Resources $ 9,341,022 $ 10,179,939 $ 10,310,350 $ 13,741, % 33.3% Not Beginning Fund Balance (Reserved) 4,289,547 4,008,078 3,559,026 3,559, % 0.0% TOTAL RESOURCES $ 13,630,569 $ 14,188,017 $ 13,869,376 $ 17,300, % 24.7% USES King County Sewer Treatment $ 4,713,277 $ 4,719,416 $ 4,833,160 $ 4,828, % -0.1% Maintenance and Operations 1,912,312 2,058,556 2,300,782 2,307, % 0.3% Debt Service 1,079,514 1,057,179 1,046,897 1,337, % 27.8% City Admin Charges 143, , , , % 2.8% Sewer System Improvements (CIP) 828,945 2,037,780 1,859,000 3,387, % 82.2% CIP Project Overhead 25,449 41,086 39,999 40, % 2.4% Interfund Transfer - CIP 154, ,434 80,500 25, % -68.0% Total Expenditures $ 8,857,450 $ 10,179,939 $ 10,310,350 $ 12,081, % 17.2% Not Percent Change Ending Fund Balance 4,773,118 4,008,078 3,559,026 5,218, % 46.6% TOTAL USES $ 13,630,569 $ 14,188,017 $ 13,869,376 $ 17,300, % 24.7% City of Mercer Island Budget E-69

72 2019 Resources Sewer Fund Interest 1% Beginning Fund Balance 4% Sales to Customers (Utilities) 95% 2020 Resources Sewer Fund Interest 1% Proceeds of Debt 26% Sales to Customers (Utilities) 73% E-70 City of Mercer Island Budget

73 Expenditure Summary Presented in the table below are expenditures by category for , followed by two pie charts depicting the percentage of each category relative to total budgeted expenditures in 2019 and USES Percent Change Description Actual Forecast Budget Budget Salaries and Wages $ 718,216 $ 795,103 $ 868,681 $ 883, % 1.7% Benefits 325, , , , % 5.7% Supplies 60,895 44,280 80,730 68, % -15.6% Contractual Services 270, , , , % -16.2% Communications 66,604 51,090 77,780 78, % 1.0% Equipment Rental 136, , , , % 1.0% King County Sewer Treatment 4,713,277 4,719,416 4,833,160 4,828, % -0.1% Insurance 58,710 62,599 64,093 66, % 4.0% Utilities 53,964 51,800 55,310 57, % 3.6% Other Services and Charges 222, , , , % 5.4% Debt Sevice 1,079,514 1,057,179 1,046,897 1,337, % 27.8% City Admin Charges 143, , , , % 2.8% Capital Program 854,394 2,078,866 1,898,999 3,427, % 80.5% Interfund Transfers 154, ,434 80,500 25, % -68.0% Total Expenditures $ 8,857,450 $ 10,179,939 $ 10,310,350 $ 12,081, % 17.2% Not N/A N/A Ending Fund Balance 4,773,118 4,008,078 3,559,026 5,218, % 46.6% TOTAL USES $ 13,630,569 $ 14,188,017 $ 13,869,376 $ 17,300, % 24.7% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Working Capital Balance $ 4,289,547 $ 4,773,118 $ 4,008,078 $ 3,559,026 Plus Revenues 9,341,022 9,414,899 9,861,298 13,741,173 Less Expenditures (8,857,450) (10,179,939) (10,310,350) (12,081,909) Ending Working Capital Balance $ 4,773,118 $ 4,008,078 $ 3,559,026 $ 5,218,290 Consisting of: Fiscal Policy Reserves 535, , , ,168 Capital Funding Reserve 839, , , ,601 Funding for Expenditures Next Year 765, , Unreserved 2,632,295 2,500,956 2,432,990 4,025,521 Ending Working Capital Balance $ 4,773,118 $ 4,008,078 $ 3,559,026 $ 5,218,290 City of Mercer Island Budget E-71

74 2019 Uses Sewer Fund Interfund Transfers 1% Salaries 7% Benefits 3% Capital Program 18% City Admin Charges 1% Contract Services 4% Communications 1% Equipment Rental 1% Debt Sevice 10% Other Services and Charges 4% Utilities 1% Insurance 1% King County Sewer Treatment 47% 2020 Uses Sewer Fund Salaries 8% Benefits 3% Capital Program 28% Contractual Services 2% Communications 1% Equipment Rental 1% City Admin Charges 1% Debt Sevice 11% Other Services and Charges 4% King County Sewer Treatment 40% Utilities 0% Insurance 1% E-72 City of Mercer Island Budget

75 Operating Budget Analysis Recap by Fund A summary analysis follows comparing the 2018 Approved Budget to the Final Budget, broken down by year, with Significant Changes and Service Packages separately identified for 2019 and This analysis excludes Capital Improvement Program costs, focusing on operating costs only Analysis Budget % Change Approved Budget 7,981,639 Plus 2019 General Inflationary Increases 176, % Plus (Less) 2019 Significant Changes: King County sewer treatment 113,744 Telephone - telemetry 26,690 IT operations and maintenance 4,049 Fleet operations and maintenance (11,298) Subtotal 133, % 2019 Base Budget 8,290, % 2019 Service Package Requests: Combo Vactor & CCTV Vehicles - Sewer Rate Model Analysis 40,000 Subtotal 40, % 2019 Final Budget 8,330, % 2020 Analysis Budget % Change Final Budget 8,330,851 Plus 2020 General Inflationary Increases 6, % Plus (Less) 2020 Significant Changes: Debt servcie 290,823 Subtotal 290, % 2020 Base Budget 8,628, % 2020 Service Package Requests: None - Subtotal - 0.0% 2020 Final Budget 8,628, % City of Mercer Island Budget E-73

76 E-74 City of Mercer Island Budget

77 STORM WATER FUND 432 Recap by Fund The Storm Water Fund, which encompasses the City s storm water utility, accounts for all activities (i.e. administration, operations, maintenance, and capital investment) related to the provision of storm and surface water management services to the City s residential, commercial, and public customers. RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ - $ 642,580 $ 579,973 $ 445, % -23.2% Sales to Customers 1,877,118 1,892,432 1,952,990 2,015, % 3.2% Permitting Fee-in-lieu 278, ,000 90,000 90, % 0.0% Grant 477,259 32, % N/A Interest Earnings 37,767 66,700 57,600 50, % -12.2% Total Resources $ 2,670,869 $ 2,734,452 $ 2,680,563 $ 2,601, % -2.9% Not Beginning Fund Balance (Reserved) 3,868,530 3,633,143 3,053,170 2,607, % -14.6% TOTAL RESOURCES $ 6,539,399 $ 6,367,594 $ 5,733,733 $ 5,209, % -9.1% USES Maintenance and Operations $ 1,454,740 $ 1,305,699 $ 1,300,995 $ 1,334, % 2.6% Insurance 17,856 18,869 13,647 14, % 4.4% City Admin Charges 128, , , , % 2.8% Stormwater System Improvements (CIP) 495,143 1,050,541 1,145,000 1,029, % -10.1% CIP Project Overhead 83, ,167 92,381 94, % 2.6% Interfund Transfer - CIP 83, ,717 15,250 12, % -15.4% Total Expenditures $ 2,263,677 $ 2,734,452 $ 2,680,563 $ 2,601, % -2.9% Not Percent Change Ending Fund Balance 4,275,722 3,633,143 3,053,170 2,607, % -14.6% TOTAL USES $ 6,539,399 $ 6,367,594 $ 5,733,733 $ 5,209, % -9.1% City of Mercer Island Budget E-75

78 2019 Resources Storm Water Fund Fee In Lieu 3% Interest 2% Beginning Fund Balance 22% Sales to Customers (Utilities) 73% 2020 Resources Storm Water Fund Fee In Lieu 3% Interest 2% Beginning Fund Balance 17% Sales to Customers (Utilities) 78% E-76 City of Mercer Island Budget

79 Expenditure Summary Presented in the table below are expenditures by category for , followed by two pie charts depicting the percentage of each category relative to total budgeted expenditures in 2019 and USES Percent Change Description Actual Forecast Budget Budget Salaries and Wages $ 498,031 $ 461,258 $ 473,766 $ 496, % 4.8% Benefits 196, , , , % 3.9% Supplies 140,415 34,665 36,765 36, % 0.0% Contractual Services 408, , , , % 0.3% Equipment Rental 117, , , , % 0.6% Communications 7,245 8,510 11,155 11, % 1.8% Insurance 17,856 18,869 13,647 14, % 4.4% Utilities 37,917 20,700 26,000 26, % 0.0% Other Services and Charges 36,323 46,253 45,655 46, % 2.7% Intergovernmental 12,109 16,060 14,560 14, % 0.0% City Admin Charges 128, , , , % 2.8% Capital Program 578,994 1,157,708 1,237,381 1,123, % -9.2% Interfund Transfers 83, ,717 15,250 12, % -15.4% Total Expenditures $ 2,263,677 $ 2,734,452 $ 2,680,563 $ 2,601, % -2.9% Not N/A N/A Ending Fund Balance 4,275,722 3,633,143 3,053,170 2,607, % -14.6% TOTAL USES $ 6,539,399 $ 6,367,594 $ 5,733,732 $ 5,209, % -9.1% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Working Capital Balance $ 3,868,530 $ 4,275,722 $ 3,633,143 $ 3,053,170 Plus Revenues 2,670,869 2,091,872 2,100,590 2,156,085 Less Expenditures (2,263,677) (2,734,452) (2,680,563) (2,601,762) Ending Working Capital Balance $ 4,275,722 $ 3,633,143 $ 3,053,170 $ 2,607,493 Consisting of: Fiscal Policy Reserves 102, , , ,087 Basin Improvement Reservies 101, , , ,274 Funding for Expenditures Next Year 642, , ,677 - Unreserved 3,429,789 2,830,644 2,387,225 2,384,132 Ending Working Capital Balance $ 4,275,722 $ 3,633,143 $ 3,053,170 $ 2,607,493 City of Mercer Island Budget E-77

80 2019 Uses Storm Water Fund Interfund Transfers 1% Salaries and Wages 18% Capital Program 46% Benefits 7% Supplies 1% Contract Services 12% City Admin Charges 4% Intergovernmental 1% Other Services and Charges 2% Utilities 1% Equipment Rental 4% Communications 0% Insurance 1% 2020 Uses Storm Water Fund Interfund Transfers 0% Salaries and Wages 19% Capital Program 43% Benefits 8% Supplies 1% City Admin Charges 4% Contract Services 13% Intergovernmental 1% Other Services and Charges 2% Utilities 1% Insurance 1% Communications 0% Equipment Rental 5% E-78 City of Mercer Island Budget

81 Operating Budget Analysis Recap by Fund A summary analysis follows comparing the 2018 Approved Budget to the Final Budget, broken down by year, with Significant Changes and Service Packages separately identified for 2019 and This analysis excludes Capital Improvement Program costs, focusing on operating costs only Analysis Budget % Change Approved Budget 1,455,027 Plus 2019 General Inflationary Increases 6, % Plus (Less) 2019 Significant Changes: One time costs and carryforwards (82,740) IT operations and maintenance 17,908 Fleet operations and maintenance (18,415) Subtotal (83,247) -5.7% 2019 Base Budget 1,377, % 2019 Service Package Requests: CCTV Inspection Services 50,000 Subtotal 50, % 2019 Final Budget 1,427, % 2020 Analysis Budget % Change Final Budget 1,427,932 Plus 2020 General Inflationary Increases 37, % Plus (Less) 2020 Significant Changes: None - Subtotal - 0.0% 2020 Base Budget 1,465, % 2020 Service Package Requests: None - Subtotal - 0.0% 2020 Final Budget 1,465, % City of Mercer Island Budget E-79

82 E-80 City of Mercer Island Budget

83 INTERNAL SERVICE FUNDS Internal Service Funds account for the financing, on a cost-reimbursement basis, of goods and services provided by one department of the City to another department. The City of Mercer Island has two Internal Service Funds: the Equipment Rental Fund and the Computer Equipment Fund.

84 E-82 City of Mercer Island Budget

85 EQUIPMENT RENTAL FUND 503 The Equipment Rental Fund accounts for the cost of maintaining, operating and replacing all City owned vehicles, heavy equipment and radios, which are funded through internal user charges that are developed for each class of vehicle, heavy equipment, and radio. Maintenance and operating costs include, but are not limited to, fuel, parts, insurance, mechanic services, and administrative support. A vehicle replacement reserve within the fund accumulates the resources needed to replace a vehicle when its useful life has been reached. Vehicles scheduled for replacement are described in section G (Capital Improvement Program). RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ 542,712 $ 1,169,789 $ 548,000 $ 655, % 19.5% Property Taxes 208, , , , % 4.4% Vehicle Maintenance & Operations 534, , , , % 0.0% Vehicle Replacement Contributions 515, , , , % 0.0% Radio Replacement Contributions 24,832 24,832 24,832 24, % 0.0% Insurance Proceeds (Fuel Cleanup) - 141, % N/A Sale of Assets 90,398 21,500 41,000 52, % 26.8% Fire Apparatus Financing - 745, % N/A Fire Emergency Response Recovery - 24,000 29,000 29, % 0.0% Donation - Fire Apparatus 233,240 22, % N/A Investment Interest 1,664 4,790 4,790 4, % 0.0% Interfund Transfer 22, , % N/A Total Resources $ 2,173,175 $ 3,583,446 $ 1,892,601 $ 2,020, % 6.8% Not Beginning Fund Balance (Reserved) 2,560,768 2,179,131 2,337,337 2,036, % -12.8% TOTAL RESOURCES $ 4,733,943 $ 5,762,576 $ 4,229,938 $ 4,057, % -4.1% USES Fleet Services $ 523,116 $ 545,032 $ 539,870 $ 544, % 0.9% Pollution Remediation (Fuel Cleanup) 83, , , , % 0.0% Fire Apparatus - 745, % N/A Lease Payments-Fire Fleet 235, , , , % 0.0% Vehicle Replacements 542,712 1,169, , , % 19.5% Total Expenditures $ 1,385,024 $ 2,877,239 $ 1,537,942 $ 1,649, % 7.3% Not Percent Change Ending Fund Balance 3,348,920 2,885,337 2,691,996 2,407, % -10.6% TOTAL USES $ 4,733,943 $ 5,762,576 $ 4,229,938 $ 4,057, % -4.1% City of Mercer Island Budget E-83

86 2019 Resources Equipment Rental Fund Fire Response Recovery 2% Beginning Fund Balance 29% Fleet Rates 57% Property Tax 12% 2020 Resources Equipment Rental Fund Fire Response Recovery 2% Begin Fund Balance 1% Fleet Rates 54% Property Tax 12% E-84 City of Mercer Island Budget

87 Expenditure Summary Presented in the table below are expenditures by category for , followed by two pie charts depicting the percentage of each category relative to total budgeted expenditures in 2019 and USES Description Actual Forecast Budget Budget Salaries and Wages $ 100,644 $ 99,026 $ 102,873 $ 105, % 2.7% Benefits 45,657 45,723 45,271 47, % 4.0% Supplies 206, , , , % 0.0% Contractual Services 130,636 97, , , % 0.0% Equipment Rental 6,527 6,565 7,240 7, % 0.1% Debt Service Payments 235, , , , % 0.0% Other Services and Charges 1,386 2,350 2,550 2, % 0.0% Insurance 31,580 28,700 31,500 32, % 1.6% Capital Program 626,245 2,218, , , % 13.6% Total Expenditures $ 1,385,024 $ 2,877,239 $ 1,537,942 $ 1,649, % 7.3% Not Percent Change Ending Fund Balance 3,348,920 2,885,337 2,691,996 2,407, % -10.6% TOTAL USES $ 4,733,943 $ 5,762,576 $ 4,229,938 $ 4,057, % -4.1% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 3,103,480 $ 3,348,920 $ 2,885,337 $ 2,691,996 Plus Revenues 1,630,463 2,413,657 1,344,601 1,365,628 Less Expenditures (1,385,024) (2,877,239) (1,537,942) (1,649,995) Ending Fund Balance $ 3,348,920 $ 2,885,337 $ 2,691,996 $ 2,407,629 Consisting of: Operating Reserve 100, , , , MHz Radio Replacement 323, , , ,441 Fire Apparatus Sinking Fund 336, , , ,430 Vehicle Replacements Next Year 1,169, , , ,500 Vehicle Replacement Reserve 1,418,404 1,396,203 1,020, ,259 Ending Fund Balance $ 3,348,920 $ 2,885,337 $ 2,691,996 $ 2,407,629 City of Mercer Island Budget E-85

88 2019 Uses Equipment Rental Fund Salaries 7% Benefits 3% Capital Program 36% Supplies 16% Contract Services 5% Debt Service Payments 13% Insurance 2% 2020 Uses Equipment Rental Fund Capital Program 40% Salaries 6% Benefits 3% Supplies 15% Contract Services 6% Debt Service Payments 13% Insurance 2% E-86 City of Mercer Island Budget

89 Operating Budget Analysis Recap by Fund A summary analysis follows comparing the 2018 Approved Budget to the Final Budget, broken down by year, with Significant Changes and Service Packages separately identified for 2019 and This analysis excludes Capital Improvement Program costs, focusing on operating costs only Analysis Budget % Change Approved Budget 545,032 Plus 2019 General Inflationary Increases 11, % Plus (Less) 2019 Significant Changes: Gasoline and diesel fuel (17,000) Subtotal (17,000) -3.1% 2019 Base Budget 539, % 2019 Service Package Requests: None - Subtotal - 0.0% 2019 Final Budget 539, % 2020 Analysis Budget % Change Final Budget 539,870 Plus 2020 General Inflationary Increases 5, % Plus (Less) 2020 Other Significant Changes: None - Subtotal - 0.0% 2020 Base Budget 544, % 2020 Service Package Requests: None - Subtotal - 0.0% 2020 Final Budget 544, % City of Mercer Island Budget E-87

90 E-88 City of Mercer Island Budget

91 COMPUTER EQUIPMENT FUND 520 The Computer Equipment fund accounts for the cost of operating, maintaining and replacing all City owned computer-related software and equipment (servers, networks, PC s, laptops, printers, and phones), which are funded through internal user charges that are developed for each type of technology related device. A computer replacement reserve within the fund accumulates the resources needed to replace a computer when its useful life has been reached. RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ 191, ,000 $ 160,000 $ 279, % 74.4% Computer Support and Replacement 923, ,300 1,207,852 1,233, % 2.1% Interfund Transfers 23, , % N/A Total Resources $ 1,138,713 $ 1,270,826 $ 1,367,852 $ 1,512, % 10.6% Not Beginning Fund Balance (Reserved) 217, , ,260 72, % -59.8% TOTAL RESOURCES $ 1,356,108 $ 1,442,453 $ 1,547,112 $ 1,584, % 2.4% USES Network Administration $ 767,689 $ 878,193 $ 1,036,047 $ 1,060, % 2.4% Capital Replacement - Computers 191, , , , % 74.4% Total Expenditures $ 959,481 $ 1,103,193 $ 1,196,047 $ 1,339, % 12.0% Not Percent Change Ending Fund Balance 396, , , , % -30.3% TOTAL USES $ 1,356,108 $ 1,442,453 $ 1,547,112 $ 1,584, % 2.4% City of Mercer Island Budget E-89

92 2019 Resources Computer Equipment Fund Beginning Fund Balance 12% IT Rental Rates 88% 2020 Resources Computer Equipment Fund Beginning Fund Balance 18% IT Rental Rates 82% E-90 City of Mercer Island Budget

93 Expenditure Summary Presented in the table below are expenditures by category for , followed by two pie charts depicting the percentage of each category relative to total budgeted expenditures in 2019 and USES Description Actual Forecast Budget Budget Salaries and Wages $ 413,634 $ 471,313 $ 543,933 $ 558, % 2.7% Benefits 140, , , , % 3.1% Supplies 30,410 16,500 19,000 19, % 0.0% Contractual Services 112, , , , % 2.3% Communications 38,069 43,260 40,150 40, % 0.0% Other Services and Charges 19,365 12,000 19,000 19, % 0.0% Intergovernmental 13,464 22,500 22,500 22, % 0.0% Capital Program 191, , , , % 74.4% Total Expenditures $ 959,481 $ 1,103,193 $ 1,196,047 $ 1,339, % 12.0% Not Percent Change Ending Fund Balance 396, , , , % -30.3% TOTAL USES $ 1,356,108 $ 1,442,453 $ 1,547,112 $ 1,584, % 2.4% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 409,187 $ 396,627 $ 339,260 $ 351,065 Plus Revenues 946,921 1,045,826 1,207,852 1,233,766 Less Expenditures (959,481) (1,103,193) (1,196,047) (1,339,994) Ending Fund Balance $ 396,627 $ 339,260 $ 351,065 $ 244,837 Consisting of: Computer Replacements Next Year 185, , ,000 - Funding for Operating Expenditures Next Year 40, Computer Replacement Reserve 171, ,260 72, ,837 Ending Fund Balance $ 396,627 $ 339,260 $ 351,065 $ 244,837 City of Mercer Island Budget E-91

94 2019 Uses Computer Equipment Fund Capital Program 13% Other Services and Charges 2% Intergovernmental 2% Communications 3% Salaries 45% Contract Services 12% Supplies 2% Benefits 16% 2020 Uses Computer Equipment Fund Other Services and Charges 1% Intergovernmental 2% Capital Program 21% Salaries 42% Communications 3% Contract Services 12% Supplies 1% Benefits 14% E-92 City of Mercer Island Budget

95 Operating Budget Analysis Recap by Fund A summary analysis follows comparing the 2018 Approved Budget to the Final Budget, broken down by year, with Significant Changes and Service Packages separately identified for 2019 and This analysis excludes Capital Improvement Program costs, focusing on operating costs only 2019 Analysis Budget % Change Approved Budget 878,193 Plus 2019 General Inflationary Increases 33, % Plus (Less) 2019 Significant Changes: Software maintenance & support (Office 365, Watchgaurd, SeeClickFix, Bang the Table, etc.) 38,500 Salary and benefits - eliminage CIP project management 62,294 Cloud Services (Hyland Global, Azure, etc) 23,300 Subtotal 124, % 2019 Base Budget 1,036, % 2019 Service Package Requests: None - Subtotal - 0.0% 2019 Final Budget 1,036, % 2020 Analysis Budget % Change Final Budget 1,036,047 Plus 2020 General Inflationary Increases 24, % Plus (Less) 2020 Other Significant Changes: None - Subtotal - 0.0% 2020 Base Budget 1,060, % 2020 Service Package Requests: None - Subtotal - 0.0% 2020 Final Budget 1,060, % City of Mercer Island Budget E-93

96 E-94 City of Mercer Island Budget

97 TRUST FUNDS Trust Funds account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, and other governments. The City of Mercer Island has one Trust Fund, the Firefighters Pension Fund.

98 E-96 City of Mercer Island Budget

99 FIREFIGHTERS PENSION FUND 606 The Firefighters Pension Fund accounts for pension benefits available to all firefighters hired on or before March 1, On that date the Washington Law Enforcement Officers' and Firefighters' System (the LEOFF Retirement Plan) was established. Each city maintaining a Firefighters Pension Fund retained responsibility for all benefits payable to eligible members (or their survivors). Cities with a Firefighters Pension Fund receive state-shared fire insurance premium taxes. RESOURCES Description Actual Forecast Budget Budget Beginning Fund Balance $ 16,321 $ 30,951 $ 17,178 $ 22, % 29.1% Property Tax 26,410 26,410 26,410 26, % 0.0% Insurance Premium Tax 32,272 32,983 32,756 32, % 0.0% Interest 8,183 12,656 12,656 12, % 0.0% Total Resources $ 83,187 $ 103,000 $ 89,000 $ 94, % 5.6% Not Beginning Fund Balance (Reserved) 885, , , , % -2.6% TOTAL RESOURCES $ 968,583 $ 957,445 $ 926,267 $ 909, % -1.9% USES Retirement Benefits $ 83,187 $ 103,000 $ 89,000 $ 94, % 5.6% Total Expenditures $ 83,187 $ 103,000 $ 89,000 $ 94, % 5.6% Not Percent Change Ending Fund Balance 885, , , , % -2.6% TOTAL USES $ 968,583 $ 957,445 $ 926,267 $ 909, % -1.9% City of Mercer Island Budget E-97

100 2019 Resources Firefighters Pension Fund Interest 14% Begin Fund Balance 1% State Shared Revenues 37% Property Tax 30% 2020 Resources Firefighters Pension Fund Interest 13% Begin Fund Balance 1% State Shared Revenues 35% Property Tax 28% E-98 City of Mercer Island Budget

101 Expenditure Summary Recap by Fund Presented in the table below are expenditures by category for , followed by a chart depicting the projected pension benefit cash outflows. USES Description Actual Forecast Budget Budget Salaries and Wages $ - $ - $ - $ - N/A N/A Benefits 83, ,000 89,000 94, % 5.6% Supplies N/A N/A Contractual Services N/A N/A Equipment Rental N/A N/A Other Services and Charges N/A N/A Intergovernmental N/A N/A Interfund Transfers N/A N/A Total Expenditures $ 83,187 $ 103,000 $ 89,000 $ 94, % 5.6% Not Percent Change Ending Fund Balance 885, , , , % -2.6% TOTAL USES $ 968,583 $ 957,445 $ 926,267 $ 909, % -1.9% Fund Balance Fund balance consists of the following restricted and unrestricted amounts. Description Actual Forecast Budget Budget Beginning Fund Balance $ 901,717 $ 885,396 $ 854,445 $ 837,267 Plus Revenues 66,866 72,049 71,822 71,822 Less Expenditures (83,187) (103,000) (89,000) (94,000) Ending Fund Balance $ 885,396 $ 854,445 $ 837,267 $ 815,089 Consisting of: Funding for Expenditures Next Year 30,951 17,178 22,178 - Pension Reserve 854, , , ,089 Ending Fund Balance $ 885,396 $ 854,445 $ 837,267 $ 815,089 City of Mercer Island Budget E-99

102 $140,000 Projected Pension Benefit Cash Outflows $120,000 $100,000 $80,000 $60,000 Benefit Pymnt $40,000 $20,000 $ YEAR E-100 City of Mercer Island Budget