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HomeMy WebLinkAbout052208 Capital Financing WorkshopRenton City Council Capital Financing Workshop
Thursday, May 22, 2008, 1:00-5:00 p.m.
71h Floor Conferencing Center
Renton City Hall
AGENDA
Time
Topic
Presenter/Discussion
1:00
Introductions
Council President
Palmer
1:15-2:00
Regional Economic Overview
• State of the economy
• Slowdown: real estate and sales tax collections
Doug Pedersen
• Effect of the credit market on local governments
• Other influences for 2008-2009
Discussion - All
2:00-2:30
Renton's 2009 Operating Budget
• Preliminary trends and assumptions for 2009
Jay Covington
• Implications for labor negotiations
Nancy Carlson
• Renton Results format for 2009 budget
• ICMA National Citizen Survey findings
Marty Wine
Discussion - All
2:30-4:30
Capital Financing
• 2008 Project Updates
Marty Wine
Terry Higashiyama
Current and Future Capital Needs
Gregg Zimmerman
• Update: Study of Space Needs for City Facilities
Alex Pietsch
• Fund 316: Municipal Facilities CIP Fund
Peter Renner
• Fund 317 and Transportation Improvement
Peter Hahn
Program (TIP) Preview
Lys Hornsby
• Utility CIP Funds
Discussion - All
4:30
Next Steps
Council President
Palmer
City of Renton Business Plan Goals
DRAFT 2009-2014 Objectives
Objectives represent the activities and initiatives the City will undertake to carry
out each of the five business plan goals during 2009-2014.
Meet the service demands that contribute to the livability of the community
o Develop a long-term strategy to meet staff facility needs including the
potential of construction of a new city hall in Downtown Renton (that
improves efficiency by centralizing City staff, enhances services and
convenience for residents and other customers, and contributes to the
continued revitalization of the City's historic business district.)
o Design and construct a new Maintenance Facility.
o Design and construct a Fire & Emergency Services facility to enhance
service levels in Kennydale and other neighborhoods in the northern
portion of the City.
Develop a plan and funding to acquire land along the Cedar River over
time, as it becomes available, for future public purposes.
Complete and implement the Parks, Recreation and Open Space Plan
which identifies needs and funding for acquisition and development.
D Enact the recommendations of the Renton Library Master Plan that
provide the desired level of service for library customers.
o Develop and implement on-line systems to improve customer service.
o Improve the City's Fire Rating to reduce insurance costs.
o Establish a CERT Team in each Community Planning Area to better
prepare business and residents in the case of a emergency.
o Implement a Community Planning initiative to align the City's
Comprehensive Plan with related activities by geographic areas of the
City through engagement with the communities themselves.
o Establish service delivery standards through the development of a Fire and
Emergency Services Master Plan.
o Complete the Renton History Museum's Master Plan and review the
recommendations.
Promote strong neighborhoods
o Work with the Renton Housing Authority and Renton School District to
redevelop the North Highlands Community Center and other publicly -
owned properties in the Harrington neighborhood to expand affordable
housing capacity, while improving the services and amenities available to
the neighborhood.
Review the recommendations of the Highlands Task Force and work to
improve the quality of life in the neighborhood.
Develop and implement an "Affordable Housing" initiative with the goal
of increasing the capacity of housing units affordable to people at various
income levels throughout the City.
Improve the sense of safety in the community.
Complete regional trails through Renton including the Lake Washington,
Springbrook / Interurban, and Cedar Trails.
Improve pedestrian connections including the connection of The Landing
to the Harrington neighborhood.
Coordinate with the various arts groups in the City to establish a cultural
arts master plan.
r Achieve "Tree City USA" status.
0 Create forums and strategies to better engage the City's diverse
population.
Investigate the ways that a historic preservation plan could contribute to
maintaining Renton's distinct character.
Manage growth through sound urban planning
0 Develop a plan by which Fairwood and other large scale annexations
could occur without negatively impacting the existing City over time.
Review and update development regulations and mitigation fees to
balance sound land use planning, economic development and
environmental protection while improving efficiencies.
0 Complete the State -mandated Shoreline Master Program update.
Develop "low -impact" and "green" development standards and
incentives.
Promote citywide economic development
Aggressively pursue the redevelopment of the Quendall Terminals and
Pan Abode properties to their highest and best use.
tAggressively pursue redevelopment of the Sound Ford, Bryant
Motors/ Don -a -Lisa Hotel, and Stoneway properties.
Aggressively recruit new high -profile and high -wage employers to locate
in marquee office development opportunities in Renton.
Direct redevelopment of the Landing -Phase II properties to their highest
and best use, while mitigating impacts to the surrounding neighborhood.
Engage key Downtown property owners and encourage the timely
redevelopment and/or renovation of aging buildings.
Through a public/private partnership, establish facilities for the use of
seaplane and land -based aircraft.
Influence decisions that impact the City
2
Work with the State Legislature and King County to extend or develop
funding mechanisms to offset the anticipated cost of future large-scale
annexations.
Aggressively pursue initiatives that encourage The Boeing Company to
select Renton as the final assembly location for the next generation of
single -aisle commercial aircraft.
In partnership with other cities, build a regional misdemeanant
correctional facility.
Work with the King County Ferry District to ensure a future passenger ferry
route on Lake Washington serves Renton.
Aggressively pursue development of a Bus Rapid Transit network along the
Interstate 405 corridor.
Pursue a concept for a streetcar or another mode of meaningful high
capacity transit connecting South Lake Washington, Downtown, and the
Longacres Commuter Rail Station.
Increase the frequency and number of routes connecting the Renton
Highlands and The Landing and Downtown Renton.
Enhance the partnership between the City and the Renton School District
by pursuing joint operating agreements for like services and other
potential efficiencies.
Develop strategies to improve response times for advanced life support
services.
Partner with King County and neighbor cities to mitigate the impact of
FEMA's updated FIRM map.
3
CITY EVENTS 2007
_ Total of Event City Costs
4t" of July $83,294.56 $55,294.56
FR&v Days $4111611.00 $126,306.00
[—Holiday Lights $82,597.00 $181797.00
$577,502.56 200,397.56
*Differential = $377,105.00
*Does not measure economic support to community as
demonstrated in report. Events overall are over 65%
supported by donations and other revenues.
THE PUGET SOUND
1@i�IIC FORECASTER
FORECAST AND COMMENTARY BY DICK CONWAY AND DOUG PEDERSEN Volume 16
Or Not to Be
Regional
"To be, or not to be, that is the question." Shakespeare's line
Outlook
from Hamlet keeps coming to mind whenever there is talk of reces-
sion. In February, Global Insight called for a short and shallow
Forecasting recessions.
downturn for the nation, while the Blue Chip panel predicted a nar-
Forecasting recessions is not
row escape.
a strong suit of the economics
Clearly, avoiding a recession would mean a lot to President
profession. There is the stale
Bush and Fed chief Ben Bernanke. But does it matter to the Puget
joke about the economist who
Sound region, especially since there is in fact no substantial differ-
predicted six of the last twodownturns. And the cartoon of
ence between the two national forecasts? In either case, the
an economist standing in a hole
regional economy would fare reasonably well.
declaring that there would be
Perhaps, we
no recession.
should be asking
There are three reasons why
another question: Summary Forecast
the dismal science has a poor
will the U.S. Annual Percent Change
2006 2007 2008 2009
record of predicting recessions.
economy suffer a
First, there has been little
Puget Sound Region
opportunity to practice the art,
severe setback?
Employment 3.2 3.2 1.8 1.1
as the U.S. economy has had only
y y
Such a scenario
Personal income (cur. $) 7.8 8.4 5.7 5.3
seven downturns in the past fifty
is not inconceiv- Consumer price index 3.8 3.8 3.4 2.6
years. Second, most recessions
able, given the Housing permits -2.3 2.3 -22.5 -1.4
are short and shallow and at
unknown depth Population 1.6 2.0 1.8 1.5
times over before we know it.
of the problems United States"
The nine -month dip in the national
economy in 2001 is a case in point.
in the housing
GDP ($00) 2.9 2.2 1.7 2.6
Third, recessions are some -
and credit mar- Employment 1.8 1.1 0.6 1.1
times triggered by unpredictable
kets. In that case, Personal income (cur. $) 6.6 6.2 5.0 5.0
shocks. There have been only
we might have Consumer price index 3.2 2.9 3.0 22
two major reversals in the U.S.
to write a script Housing starts -12.5 -25.9 -24.3 14.7
economy since the late 1950s.
for a regional *Source: Blue Chip Economic Indicators
The 1973 bust was caused by the
recession.
OPEC oil boycotts and price hikes.
Despite the pall over the U.S. economy, the outlook is still hope-
The 1979-82 downturn, which
ful. Most economists, including many who claim that the nation is
turned out to be the deepest
already in recession, contend that the economy will be expanding
recession since the 1930s, was a
more complicated affair. In an
later this year, having gotten a kick-start from the federal govern-
attempt to control raging inflation
ment's aggressive fiscal and monetary policies.
ignited by
If that prognosis is correct, the regional economy will Retail
Sales 4 rising energy
slow down but stay clear of a recession. Still, the decelera- Construction 5 costs, the
tion will be abrupt, as employment growth is expected to Federal
Michigan Recession 6
fall from 3.2 percent in 2007 to 1.8 percent in 2008 and 1.1
Reserve
percent in 2009. Personal income growth will follow suit, Forecast Detail severely
slowing from 8.4 percent to 5.3 percent over the two-year Ieadinglndex 8 restricted
the growth
period. Thus, it is likely that by 2009 the region will be INSIDE of the money
growing no faster than the nation.
supply,
Number 1
March
2008
THE PUGET SOUND
ECONOMIC FORECASTER
Regional Outlook
causing interest rates to soar and
investment to collapse.
Since we began publishing this
newsletter, we have had just two
prior occasions to make a call on a
possible recession in the Puget
Sound region. The title of our first
newsletter, which hit the streets in
late 1993, was "On the Edge."
Puget Sound and U.S. Real Personal Income
Percent Change
i2 r`-
1990 1995 2000 2005 2010
Puget Sound W United States
Having already lost 20,000
manufacturing jobs in the region
between 1990 and 1993, Boeing
announced the elimination of
19,000 positions over an 18-month
period. Taking into account the
multiplier effect, we estimated
that the Boeing lay-offs would cost
the region 50,000 jobs by 1995.
The critical question was whether
or not there was enough lift
elsewhere in the economy to offset
the Boeing losses.
Our forecast called for "the
continuation of the relatively flat
economy —at least in terms of
employment growth —that we
have experienced the past three
years." We predicted job gains of
0.9 percent in 1993 and 0.8 percent
in 1994, which turned out to be
reasonably accurate. Despite the
loss of 19,800 aerospace jobs
between the third quarter of 1993
and the third quarter of 1995,
regional employment rose 0.8
percent in 1993 and 1.5 percent
in 1994.
Our second chance at calling a
recession was a messy matter. In
February 2001, we wrote an article
entitled "Not Much to Fear," which
opened with the following passage:
"Suppose we had a recession and
nobody noticed. Something like
this may be in the offing." That
was prescient for the nation,
which succumbed to a brief
recession the following month, but
it completely mischaracterized
what was to befall the region.
At the time, the Puget Sound
leading index indicated that
regional employment would begin
to decline in or about the first
quarter of 2001, marking the
start of a recession. However,
this warning was contradicted by
preliminary job estimates pub-
lished by Washington Employment
Security Department (ESD), which
showed that employment was
still rising at mid -year. Follow-up
data revisions revealed that, as a
consequence of the dot-com bust,
the regional economy had indeed
fallen victim to a recession at the
beginning of the year. Then came
September 11, which resulted in
20,000 layoffs at Boeing over a
two-year period. Thus, it was not
until November that we declared
that the region was in "a sharp
recession, much like the 1981-82
downturn."
By the time that we prepared
our annual ten-year outlook in
September 2002, we had a pretty
good handle on not only when the
recession would play out but also
how strong the recovery would be.
We predicted that employment
would stabilize by the end of 2002
and then accelerate rapidly over
the next four years. Employment
growth would average 2.0 percent
per year between 2002 and 2006,
peak at 3.3 percent in 2006, and
create 137,500 jobs along the
way. In actuality, employment
bottomed out in early 2003, grew
at a 1.7 percent annual rate over
the four-year period, and peaked
at 3.2 percent in 2006. Overall, the
region added 115,900 jobs.
A third chance.
We now face our third challenge
of forecasting —or not forecast-
ing —a recession. The task should
be easier this time around if for no
other reason than that we have
better jobs data from ESD, which
has implemented improved sam-
pling and benchmarking proce-
dures. We are also unlikely to be
shocked by anything like 9/11.
On the other hand, the uncertain
fate of the housing and financial
markets over the next six months
has generated considerable fog in
our crystal ball.
We first turn to the national
economy. As the largest market for
Puget Sound exports, it has a big
say in the region's future.
Following the report that U.S. non-
U.S. Real Gross Domestic Product
Annual Percent Change
5
11 1 1 1 1 1 J
I I
2007.1 2007.2 2007.3 2007.4 2008.1 2008.2 2008.3 2008.4
— Blue Chip — Global Insight
farm payroll employment had
fallen by 17,000 in January, we
delayed preparing the March fore-
cast until we had learned what the
Blue Chip economists thought of
that development. Not surpris-
ingly, the panel of national fore-
casters appreciably lowered its
projection of economic growth
over the next two years. According
Page 2 March 2008
THE PUGET SOUND
ECONOMIC FORECASTER
Washington Real Exports and Foreign
Exchange Rate
Percent Change March I
40
30
20
10
0
-10
in
Barring a severe
national recession, the
973=100 Puget Sound economy
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Real exports* (1) - Foreign exchange rate (r)
120
should escape a down-
110
turn by a good margin.
Providing a boost both
l0o
regionally and nationally
90
is strong foreign demand.
As Global Insight points
B0
out, the big improvement
70
in international trade is a
60
"key reason why our
'Excludes exports of services, including royalty payments for software.
to the February consensus
forecast, real Gross Domestic
Product will advance 1.7 percent
in 2008 and 2.6 percent in 2009.
These revised growth rates are
down 0.7 and 0.3 percentage
points, respectively, from the
December 2007 outlook.
The downward revisions
notwithstanding, the Blue Chip
panel is still not predicting a
national recession. In contrast,
Global Insight now anticipates
a short and shallow downturn
during the first half of 2008
because of tightening credit
conditions.
Despite different calls on the
recession, these two forecasts
are not far apart. Both groups
of economists are predicting a
pick-up in the growth rate later
this year because of the $152-bil-
lion fiscal stimulus package
passed by Congress and the antici-
pation of further interest rate cuts
by the Federal Reserve. By the
fourth quarter of 2008, the Global
Insight forecast of real Gross
Domestic Product is lower than
the Blue Chip prediction, but the
difference is a trivial 0.3 percent-
age points. In this respect, it
apparently does not matter
whether the nation has a
recession or not.
(U.S.) baseline shows
only a mild recession."
The weak dollar
coupled with healthy
growth overseas, especially in
Asia, will benefit the Puget Sound
region even more, as evident by
the recent growth of Washington
real foreign exports. Because of
the plummeting value of the dollar,
real foreign exports jumped 35.3
percent in 2006 and 20.3 percent in
2007, according to WISERTrade
tabulations.
Note that WISERTrade estimates
exclude billions of dollars in for-
eign royalty payments for
Microsoft software. Nevertheless,
in 2007, Washington ranked fourth
nationally in foreign exports ($66.2
billion), trailing only Texas ($168.0
billion), California ($134.1 billion),
and New York ($69.3 billion).
We should also point out that
not all of the recent growth is
attributable to the Boeing
rebound. In constant dollars,
Washington foreign exports
excluding transportation equip-
ment
expanded at
a 13.9
percent
annual rate
between
2002 and
2007, twice
as fast as
U.S. over-
seas sales.
End -of -year benchmarking of
state job estimates indicates that
Puget Sound employment grew
more slowly in 2007 (perhaps 2.7
percent) than what is currently
reported (3.2 percent). In any
event, due to the national slow-
down and local housing woes,
our regional forecast calls for job
growth to decelerate to 1.8 per-
cent in 2008 and 1.1 percent in
2009. While this implies that there
will be no regional recession,
it does suggest that the local
economy will weaken substantially
over the next few quarters.
Consequently, in 2009, we expect
that the region will be expanding
at about the same rate as the
nation, at least in terms of
employment and personal income.
This also suggests that the
regional economy could be vulner-
able to a recession by the end of
the year (see the leading index
article). What could prompt a
slide? Probably a combination
of things: a deeper national down -
Forecast Probabilities
False alarm 10 percent
Baseline 55 percent
Downturn 35 percent
turn, a total collapse of the local
housing market, and a halt
to hiring at Boeing because of
the loss of the Air Force tanker
contract.
Downturn Scenario
Annual Percent Change
Employment
Personal income (cur. $)
Consumer price index
Housing permits
Population
2007 2008 2009
2.7
0.5
-1.0
7.7
4.6
3.0
3.8
3.2
2.4
2.3
-45.0
-7.5
1.8
1.4
0.9
Page 3 March 2008
THE PUGET SOUND
ECONOMIC FORECASTER
Retail Sales
Pick your poison.
It is a tough environment for
retailers at the moment: slowing
employment and income growth,
higher unemployment, declining
housing starts, shrinking home
values, reduced credit availability,
record gasoline prices, and plung-
ing consumer sentiment. Total U.S.
retail sales, which rose 6.2 percent
in 2006, advanced only 4.1 percent
in 2007. Moreover, retail sales
weakened over the course of the
year. Excluding sales at gasoline
stations, which bulged due to
surging gas prices, retail sales rose
at a 0.8 percent annual rate in the
fourth quarter, well below the 2.4
percent inflation rate for the U.S.
consumer price index (excluding
energy).
Puget Sound retailers face nearly
an identical set of constraints, but
the region's stronger economic
growth has so far provided a
comfortable cushion. After rising
6.3 percent in 2006, regional retail
sales climbed 7.2 percent in 2007,
holding up reasonably well even at
the end of the year.
Looking down the road,
however, the anticipated slow-
down in regional economic activity
will begin to weigh on local retail
spending. Our forecast calls for
retail sales to rise at an average
rate of 4.7 percent in 2008 and
2009, down about 2.0 percentage
points from the prior two years
and down 0.6 percentage points
from our September forecast. Sales
of durable goods are now expected
to grow 2.8 percent per year, down
1.9 percentage points from our
September prediction.
Will the federal stimulus
package, which promises $110
billion in personal tax rebates,
make much of a difference? The
impact will be temporary and
possibly modest if much of the
rebate is saved or used to pay
Puget Sound Retail Sales and
Personal Income
Annual Percent Change
10
9
8
1
6
5
4
3
2
I
1996 1998 2000 2002 2004 2006 2008
- Retail sales - Personal income
down debt. The $110-billion rebate
amounts to 1.1 percent of nominal
personal consumption expendi-
tures. If half of it were spent in the
third and fourth quarters of this
year, it would provide a two -quar-
ter lift to nominal consumer
spending amounting to about one
percentage point. The growth rate
for retail sales, about 40 percent
of consumer spending, would also
increase one percentage point
during the six-month period, other
things being equal. We expect the
same relative impact here.
Years
2007 2008 2009
Retail sales (bils. $)
61.424
62.430
63.088
63.672
64-429
56.867
60.964
64.060
66.768
Building materials
4.943
5.026
5.040
4.950
4.942
4.664
4.984
4.973
5.095
Motor vehicles and parts
13.687
13.907
14.001
14.059
14.175
12.639
13501
14.115
14.376
Furniture and electronics
3.488
3.582
3580
3.594
3.641
3.237
3502
3.621
3.759
General merchandise
7.609
7.735
7.849
7.982
8.110
7.024
7.542
8.039
8512
Food and beverage
7.577
7.662
7.733
7.808
7.883
7.160
7526
7.845
8.115
Gasoline stations
5,820
5.931
6.028
6.115
6.207
5.255
5.761
6.161
6.498
Clothing and accessories
3.044
3.084
3.118
3.159
3101
2.836
3.022
3.178
3.306
Food services and drinking
5.773
5-847
5.917
6.006
6.087
5.374
5.732
6.039
6.330
Other retail sales
9.482
9.656
9.822
9.999
10.183
8.679
9.394
10.089
10.779
Taxable retail sales (bits. S)
74.998
77.060
77.819
78.161
79.015
69.964
75.333
78.704
82-300
Retail trade
31.790
32.782
33.266
33.430
33.805
30.848
32-218
33.669
35.223
Other taxable sales
43.208
44.279
44-553
44.731
45.210
39.117
43.116
45.035
47.077
Annual growth (%change)
Retail sales
4.6
6.6
4.2
3.7
4.8
6.3
7.2
5.1
4.2
Taxable retail sales
-1.6
11.0
3.9
1.8
4.4
9.1
7-7
4.5
4.6
Quarterly data are seasonally adjusted and expressed on an annual basis.
Page 4 March 2008
THE PUGET SOUND
ECONOMIC FORECASTER
Construction and Real Estate
The path of home prices.
Some things are worth repeating.
In 2006, The Economist said that "if
you could watch just one indicator
to gauge America's economic
prospects over the next few years
you should pick house prices." As
U.S. home prices dropped last year,
the erosion of home equity, the jump
in mortgage defaults, the cutback in
housing construction, and a mount-
ing nervousness among consumers
brought the national economy to the
brink of recession. How bad it gets in
the coming months depends on how
far home prices fall.
The National Association of
Realtors predicts that U.S. existing
home prices in the United States
will bottom out this quarter. If that
prognosis pans out, national home
prices will have declined 8 percent
from their peak in late 2005.
Fundamentally, the Puget Sound
housing market is stronger than its
national counterpart because of a
high household formation rate.
Thus, we would expect regional
house prices to fall somewhat less
than national prices. From peak to
trough, we are now forecasting
that the average home price in the
region will slip from $433,500 in
the third quarter of 2007 to
$415,800 in the second quarter of
2008, a 4.1 percent decline.
But there is another perspective
on home prices that suggests that
we might not be so lucky. Since
1975 Seattle area prices have dou-
bled as a ratio of national prices,
according to OFHEO home price
indexes. Between 2005 and 2007, a
spurt in local prices raised the
ratio from 1.4, the average for the
prior ten years, to 1.6. Will the
ratio return to 1.4? If that hap-
pened, the region would see home
prices drop a total of 12 percent.
Our preferred perspective on
home prices is housing affordabil-
ity, which we define as a new
2008
1 2 3
Puget Sound Home Price and
Housing Affordability
Puget Sound to U.S. Home Price Ratio
1.9 -
Percent
-1 35
0.1
1975 1980 1985 1990 1995 2000 2005
- Home price ratio (1) - Housing affordability* (r)
Mortgage payment as percent of household income.
homeowner's first -year mortgage
payment as a percent of average
household income. Based on cur-
rent forecasts of home prices
(down 1.9 percent in 2008 and up
1.7 percent in 2009), mortgage
rates (increasing to 6.2 percent by
the end of 2009), and household
income (rising 3.6 percent per
year), the housing affordability
indicator will drop from 21.1 per-
cent in 2007 to 19.1 percent in
2009. This puts it just above the
1970-07 average of 18.8 percent,
providing support for our outlook.
Housing permits (thous.)
24.2
26.5
231
21.1
207
270
276
214
Single-family
12.1
101
111
12.4
121
157
130
119
Multi -family
12.1
16.3
12.0
86
8.5
113
146
94
Housing permits (mils
4271.5
4352.2
4059.9
3961.9
39152
44997
4705.1
39654
Single-family
2846.6
2340.8
2576.9
2889.6
28438
32414
2922.9
2787.4
Multi -family
1425.0
2011.5
1483.0
10724
10714
12583
1782.2
11780
Average home price (thous $)
433.5
417.9
416.5
415.8
4184
3944
426.6
4186
Active home listings (thous.)
29.1
30.3
31.5
310
312
18.7
27.1
31.3
Home sales (thous )
58.9
50.2
53.3
59.8
597
74.4
62.0
58.0
21A
12.2
8.9
4102.5
2938.3
1164.2
425.7
31.5
59.1
Apartment vacancy rate (%) 3.8 3.7 3.7 3.8 3.9 4.7 4.0 38 3.9
Average apartment rent 938 957 975 989 1002 854 925 995 1045
Annual growth (%change)
Housing permits (mils. $) -28 6 7.6 -26.9 -9 7 4.7 -0.6 4.6 -15.7 3.5
Average home price 2.3 .14.4 -1.3 -0.7 2.5 13.4 82 -19 1.7
Average apartment rent 10.5 8.1 7.4 57 55 54 8.3 7.6 5.0
Quarterly data are seasonally adjusted and expressed on an annual basis
31
21
23
19
15
II
Page 5 March 2008
THE PUCET SOUND
ECONOMIC FORECASTER
Special Topic: Michigan Recession
A dreary decade.
Washington and Michigan have
a number of things in common:
borders with Canada, beautiful
peninsulas, and NCAA football
championships. The two states
also sport large transportation
equipment industries that dragged
them into recession in 2001.
But the similarities stop there.
While Washington has fully recov-
ered from the slump, Michigan has
continued in a downward spiral.
Last year marked the seventh
straight year that the Great Lakes
State has lost employment. Since
2000 the state has shed 396,000
jobs, one -twelfth of its total
employment. This includes about
140,000 autoworkers.
Michigan's past reliance on the
volatile auto industry makes the
state no stranger to recessions.
Led by 116,600 layoffs at the Big
Three automakers-General
Motors, Ford, and Chrysler -the
state lost 443,000 jobs between
Michigan and Washington Economies
1979 and 1982, skyrocketing the
unemployment rate to 17 percent.
The current recession in
Michigan is unusual in two
respects. Except for the Great
Depression, it is the longest
employment downturn on record.
Moreover, much of it has taken
place in the environment of an
expanding national economy.
Hence, it has been dubbed the
"Single -State Recession."
Unfortunately, the nightmare
seems far from over. Even assum-
ing that the U.S. economy holds
together this year, Michigan gov-
ernment economists are predicting
two more years of job declines.
Who is at fault for Michigan's
dreary decade? According to the
pundits, almost everybody
deserves some of the blame. But
catching most of the flak are the
three leading players in this eco-
nomic drama: the car companies,
whose management lacks new
ideas; factory workers, whose pay -
Average
Percent
2000
2007
Change
Michigan
Employment (thous.)
4676.0
4279.5
-1.3
Transportation equipment employment (thous.)
342.6
197.1
-7.6
Unemployment rate (%)
3.7
7.2
-
Personal income (bils. $)'
294.2
352.4
2.6
Per capita personal income ($)
29551
34994
2.4
Population (thous.)
9956.7
10071.8
0.2
Home price index* (1980.1=100)
257.6
309.3
2.6
Washington
Employment (thous.)
2711.3
2936.6
1.1
Transportation equipment employment (thous.)
99.6
92.7
-1.0
Unemployment rate (%)
5.0
4.7
-
Personal income (bils. $)
187.9
262.6
4.9
Per capita personal income ($)
31775
40595
3.6
Population (thous.)
5912.0
6468.3
1.3
Home price index* (1980.1=100)
274.0
507.4
9.2
`Source: Office of Federal Housing Oversight -
Michigan Employment Change and
Net Migration
Thousands
120
80
40
0
40
-80
-120
1999 2001 2003 2005 2007
= Employment change = Net migration
checks and benefits are bloated;
and government, whose taxes and
regulations are burdensome.
Whatever the reasons, the
automakers have embarked on a
protracted process ofrestructur-
ing and downsizing, one that has
inflicted great pain in Michigan.
Coincidently, Bill Virgin, colum-
nist of the Seattle Post-lntelligencer,
recently penned a thoughtful piece
on the same topic. The headline
read, "Midwest's troubles started
when ideas stopped." He cau-
tioned the Pacific Northwest not to
become complacent about its abil-
ity to innovate.
Could Washington stumble like
Michigan? It seems unlikely, but it
is not unimaginable. Consider
what would have happened if
Boeing had decided to build the
787 in Alabama or Texas. That
could have signaled the end of the
company in Washington and the
loss of more than 200,000 jobs
over a ten-year period. Although
the state probably would have
avoided an extended recession, it
certainly would have lost much of
its economic vitality. Growing at
an anemic rate, Washington would
have had many of the symptoms of
its weaker Midwest cousins, such
as out -migration, a lifeless housing
market, and fewer dollars to pay
for education, infrastructure, and
other public necessities.
Page 6 March 2008
THE PUGET SOUND
ECONOMIC FORECASTER
0I:42WA%19M9
2007
2008
Years
3
4
1
2
3
2006
2007
2008
2009
Employment (thous)
1837.4
1848.3
1855.1
1860.8
1867.7
1774.0
1830.6
1863.6
1884-7
Goods producing
326.0
329.6
329.9
329.3
330-0
3041
322-6
3296
328.1
Natural resources and mining
11
1.3
1.2
1.2
1.2
1.1
1.2
11
11
Construction
134.8
136.9
1366
135.0
134-4
120.1
132.5
134.9
133.9
Manufacturing
190.0
191.4
192.1
193.1
194-4
183.0
188.9
193.4
193.0
Aerospace
78.0
791
80.5
81.8
83.5
714
77.1
82.5
83.7
Other durable goods
74.9
75.3
74.9
74.6
741
73.6
74.8
74-3
72.9
Nondurable goods
37.1
36.9
36.7
367
36.7
38.0
37.1
36.7
36.4
Services producing
1511.4
15188
1525.2
15315
1537.6
1469.8
1508.0
1534.0
15566
Wholesale and retail trade
278.9
2784
278-3
278.1
2782
270.7
278.5
278.1
2787
Transportation and public utilities
64.4
649
64.8
65.0
65.1
63.0
64.3
65.0
652
Information
88.3
89.0
89.8
907
91.6
83.3
87.8
91 1
94.1
Financial activities
108.9
109.5
110.5
111.4
111.6
108.7
108.8
111.3
1112
Professional and business services
246.7
248.0
249.8
250.7
2520
234.7
245.8
251.4
2573
Other services
442.1
444.3
446.4
448-9
451.4
428.0
440.5
450.0
459.6
Government
282.1
284-5
2856
286.6
287.7
281.4
282.3
287.1
2904
State and local
233.1
2351
236.7
237.7
238.7
232.2
233.4
238.2
241.3
Federal
49.0
48-8
48.8
48.9
48.9
49.2
48.9
48.9
49.1
Unemployment rate (%)
43
4.1
4.2
4.3
44
4.5
42
43
4.5
Personal income (bils. $00)
142.1
1426
143.4
145.1
1465
133.6
141.2
145.5
149.9
Personal income (bile. $)
167-5
169.7
171.E
174.7
177.3
1532
166.1
175.6
185.0
Wage and salary disbursements
1020
103.4
1045
105-8
107.1
93.1
101.3
1064
1120
Other income
655
66.4
67.2
68.9
702
60.0
64.8
69.2
73.0
Per capita personal income ($)
46764
47170
47481
48109
48628
43704
46483
48270
50101
Consumer price index (82-84 = 1.000)
2.160
2.187
2.207
2 220
2 235
2076
2155
2.228
2 284
Housing permits (thous.)
24.2
26-5
23.2
21.1
207
27.0
27.6
21.4
21 1
Population (thous.)
3582.1
3598.7
3614.9
36308
36463
3504.1
3572.8
3638.3
36917
Net migration (thous.)
467
43.5
41.8
41.0
39.1
37.2
48.3
397
23-3
Three-month treasury bill rate (%)
4.3
3.4
2-5
22
2.3
4.7
4.4
24
30
Conventional mortgage rate (%)
66
6.2
5.7
57
5.8
64
6.3
5.8
62
Annual growth (%change)
Employment
3.1
2.4
1.5
1.2
1.5
32
32
18
11
Personal income (cur $)
7.2
5.3
4A
7.1
6.0
7.8
8.4
5.7
5.3
Consumer price index
0.7
5.0
3.7
2-4
2.6
3.8
38
3.4
26
Housing permits
-26.7
37.5
-50.4
-36-6
-7.4
-2.3
2.3
-22.5
-1 4
Population
1.9
1.9
1.8
1.8
1.7
1.6
2.0
1.8
15
Quarterly data are seasonally adjusted and expressed on an annual basis.
Page 7 March 2008
THE PUGET SOUND
ECONOMIC FORECASTER
1.20
1.15
1.10
1.05
1.00
0.95
0.90
0.85
Leading Index
Sooner or later?
The Puget Sound leading index
slipped 1.1 percent in the fourth
quarter of last year, the second
straight quarterly decline. The
forward -looking index has
dropped 1.3 percent since peaking
in the second quarter, but this
falls far short of signaling an
imminent recession. Prior to
past economic downturns, the
quarterly index has retreated an
average of 5.9 percent over 4.3
quarters. The decline over the last
two quarters is consistent with the
track of our monthly leading index
featured on this newsletter's web
site, which has fallen in five of the
past six months.
Three components of the
leading index (manufacturing
hours, the Boeing backlog -delivery
ratio, and real durable goods
spending) improved last quarter,
while four components (help -
wanted ads, housing permits,
the interest rate spread, and
initial claims for unemployment
insurance) worsened.
There is no indication that
the current weakness among the
seven components is becoming
more widespread. Nevertheless,
as the risk of a national recession
mounts, the likelihood of a
regional downturn also climbs.
Based on its historical perfor-
mance, if the leading index
Puget Sound Index of Leading Economic Indicators
1974 1978 1982 1986 1990 1994 1998 2002 2006
Shaded areas show recessions or periods of economic stagnation.
continues to decline, though at
a more rapid rate, job growth
could begin to falter sometime in
the third quarter of this year.
Our forecast calls for the net
creation of 12,500 jobs in the first
half of the year and 10,000 in the
second half. This includes cuts
in construction and trade payrolls,
weaker job growth in manufactur-
ing, and flat employment in
transportation and financial
activities. All things considered,
it is hard to imagine that overall
job creation could turn negative
so soon. Thus, if a regional
recession is on the way, it would
more likely begin in early 2009.
Boeing Backlog -Delivery Ratio
104
1M
1.00
0.98
0.96
0.94
0.92
0.90
1981 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007
Puget Sound Help -Wanted Advertising
0.90
1981 1989 190 1993 199S 1991 1999 2001 1003 2005 2007
Copyright'0 2f1i18 by Conway Pedersen Economics, Inc. Reproduction without permission Is prohibited.
The Puget Sound Economic Forecaster [755N 1520-723(f) is published four times a year. A one-year subscription to the newsletter 3s $395. A one-year
subscription to the newsletter and web site is $695. For additional Information, please visit www.economieforecasterAx m. You may also contact
Dick Conway or Doug Pedersen at Conway Pedersen Economics, Inc., P. O. Box 2241, Seattle, WA 98111-2241. Telephone (206) 329.1707.
We would like to thank Blue Chip Economic Indicators, The Northwest Multiple listing Service, and Dupre + Scott Apartment Advisors for permission
to use copyrighted Information.
We attempt to be as accurate as possible with the information presented In the Puget Sound Economic Forecaster. However, Conway Pedersen
Economics, Inc., dons not guarantee the accuracy, adequacy, or completeness of any information or forecast in the newsletter, and is not responsible
for any errors or omissions or the results obtained from the use of such information or fort <e_ast. Design: Gage Design
Page 8 March 2008
National Citizen Survey
City of Renton
CjNATIONAL
RESEARCH
C E N T E R inc.
Leaders at the Core of Better Communities
About the Survey
• Collaborative effort: IC /IA, NRC, jurisdictions
• Statistically valid survey: resident opinions of
local government services
• 120o randomly selected Renton households 3/o8
• 281 completed surveys, 24% response
• Margin of error +/- 6
• Comparison to benchmarks (5-305 jurisdictions)
About the Survey
• 8 dimensions
— Community Quality
— Community Design
— Public Safety
— Environmental Sustainability
— Recreation and Wellness
— Community Inclusiveness
— Civic Engagement
— Public Trust
• 3 unique questions
— Level of preparedness for major emergency
— Willingness to fund service enhancements with
property tax increase
— Types of online services that residents would use
Dmmunitv C
4
L , 4
4--j4
-
Community Quality
Overall quality of life
Renton as a place to live
Recommend living in
Renton
0% 20% 40%
■ Excellent ❑ Good
60% 80% 100%
jsXM* ' ..
p
0% 20% 40% 60% 80% 100%
Community Design
Transportation
Ease of walking
Ease of bicycle travel
Ease of car travel
Availability of paths and walking trails
Traffic flow on major streets
� 3
Street repair and maintenance
Street cleaning
Traffic signal timing
Amount of public parking
0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80%
■ Excellent ❑ Good
1 uv -to
Community Design
Housing
Availability of
affordable
housing
20% 40% 60% 80% 100%
■ Excellent o Good
laur
mmunity Design
Land Use and Zoning
appearance
fining/zoning
0% 20% 40% 60% 80%
■ Excellent ©Good
100%
Community Design
Economic Sustainabili
Employment opportunities
1
Much to(
�^ 3%
Retail
0% 20% 40% 60% 80% 100%
■Excellent ©Good
0% 20% 40% 60% 80% 1000/0
0
--mp-
A4
ate.
. Q117M., ---
y 14-
a
'I
Public Safety
Downtown Renton
during the day
Downtown Renton
after dark
Your neighborhood
after dark
Your neighborhood
during the day
0% 20% 40% 60% 80% 100%
■ Safe o Somewhat Safe
Public Safety
Police services
Fire services
EMS/ambulance
services
Crime prevention
services
0% 20% 40% 60% 80% 100%
a Excellent ®Good
11
'0
Environmental
Sustai*nabI*IitY
Quality of
overall natural
environment
Cleanliness
Preservation of
natural areas
0% 20% 40% 60% 80% 100%
■ Excellent Q Good
#:
3
�lIIII�I' � F wr—
T • l TAT 77
JKecreatlon anci vvenness
87% visited a neighborhood or City park in the past 12 months
Recreational opportunities
City Parks
Recreation programs/classes
Recreation centers/facilities
Educational opportunities
Public library services
0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80%
■ Excellent o Good
100%
ciusivene,
INWA
Community Inclusiveness
Sense of community
Services to seniors
Openness and acceptance of the
community toward people of diverse
backgrounds
0% 20% 40% 60% 80% 100%
■ Excellent ® Good
elptysirsi We"
Lz
7iki�
0
x�l
Civic Engagement
Opportunities to participate in
community matters
Opportunities to volunteer
Y
0% 20% 40% 60%
■ Excellent o Good
80% 100%
Civic Engagement
75 % of respondents were registered to vote
86% of respondents had read the Renton Newsletter
62% of respondents had visited the City of Renton Website
�., ,s
�i. •#=� •. .. .4 � µ : ors': - ,
�•i �
5
•
o lc ues to
ions
On-line services likely to be used
Police Incident Report
Recreation/facility sign-up
Street maintenance request
Utility bill payment/lookup
Library catalog
27%
36%
33%
I
34%
34%
°o
41%
°MOM
39%
2°
0% 20% 40% 60%
■ Very Likely ri Somewhat Likely
Level of Emergency Preparedness
At least 3 days, ---,---- ~"
30%
Less than 3
days, 29%
Up to a weel
18%
1 week +
team, 4%
Not at all, 19%
fw:, �
Policy Questions
Support enhancing services? With property tax increase?
PE
Libre
c�
s
= Special eve
W
Street Beauty
Parks
i
h
Libraries . _� 43%
a
0
L i
a Special events _ „- 1- 33%
3
Street Beauty 46%
0% 20% 40% 60% 80%
Strongly support Somewhat support
100%
Poli,ocy uestions
Oppose enhancing each service? With property tax?
Parks 6%
4) Libraries 7%
cc_..--
.c
w Special events 31/6 13%
C-
H
a
0
L
a
3
Street Beauty ° 6%
Parks 81Y° 11 %
Libraries 15%
Special events 221y° 31 %
Street Beauty µ 811/0 21 %
000 10% 20% 30% 40% 50% 60%
Strongly oppose Somewhat oppose
Public Trust, City Staff
Renton's overall image
Listening to citizens
Renton's overall direction
Value of services / taxes paid
0% 20% 40% 60% 80%
49 % had in -person or phone contact with a Renton employee
Overall impression
Courtesy
Responsiveness
Knowledge
100%
0% 20% 40% 60% 80% 100%
Excellent ■ Goad
Next Steps
• Finalize report, distribute to Council
• Work with NCS
- Questions
— Benchmarks
Comparison to past surveys where
appropriate
What matters? Adjust efforts/programs
Discuss service enhancements for 2009
budget
Outlook for the Puget Sound Economy
May 2008
Doug Pedersen
Conway Pedersen Economics, Inc.
www.economicforecaster.com
THE PUGET SOUND
ECONOMIC FORECASTER
0
El
q
I
-2
U.S. Real Gross Domestic Product
Annual Qercent chance
-year average grcridh r e (3.1 0/1 4i—
If
� r
�i
2000 2002 2004 2006 2008
Source: Blue Chip Consensus Forecast, May10, 2008
Baseline --- High ----• Low
THE PUGET SOUND
ECONOMIC FORECASTER
Change in U.S. Wage and Salary Employment
4 Millions
.3
.2
as
us
-.1
-.2
-.3
----.--------------------------------------------------------
------------------------------------- ' I
---------------------------------
Note: 3-month moving average
2000 2001 2002 2003 2004 2005 2006 2007
THE PUGET SOUND
ECONOMIC FORECASTER
5
E
3
2
1
0
U.S. Consumer Inflation
2000 2001 2002 2003 2004 2005 2006 2007
�� CP I - CPI ex. food and energy --- PCE ex. food and energy
THE PUGET SOUND
ECONOMIC FORECASTER
U.S. New and Existing Homes Sales and Prices
9.0 Units, millions, ann. rate $ Thous
7.5
7.0
6.5
M
5.5
5.0
� A
Vx A
� y
1999 2000 2001 2002 2003 2004 2005 2006 2007
350
300
250
K IJ
150
New and existing homes sold (1) --- New average price (r)
New median price (r)
THE PUGET SOUND
ECONOMIC FORECASTER
U.S. Housing Starts
2 4 Units, millions, ann. rate
Wei
i".
1.2
M:
1999 2000 2001 2002 2003 2004 2005 2006 2007
— Total starts Single-family permits
--- Single-family starts
THE PUGET SOUND
ECONOMIC FORECASTER
Puget Sound and U.S. Employment
6 rCILAClll U I Idl IL4V
5------------------------------------------------------- -
4---------- ----- ----------------------------------------
3 --4*►, -- -------------------------------------- --- ---- - -
2 - --- - /-- -----------------------------
1----------------------------------- l-�-----
0---------------------------- N ------------------
------------------------------- -----------------
-2------------------------------- ___________________ __
-3 Lj --- j -- - - --- --- --- ---- --- --
I --- I --- L-1 --- L---L --- Li
1993 1995 1997 1999 2001 2003 2005 2007 2009
— Puget Sound --- United States
THE PUGET SOUND
ECONOMIC FORECASTER
Puget Sound Employment, Net Migration, and
Household Formation
80 Thousands
M
20
[I7
-20
.m
------------------------------
--------------------
1993 1995 1997 1999 2001 2003 2005 2007 2009
Employment change -Net migration ---Household formation
THE PUGET SOUND
ECONOMIC FORECASTER
1.20 1987 = 1.0
1.15
1.10
1.05
1.00
0.95
Puget Sound Leading Index
- - - - - - - - - - - - - ---------------------------------------------
-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --------- f ------
1970 1975 1980 1985 1990 1995 2000 2005
Shaded areas show recessions or periods of economics tagnation.
THE PUCET SOUND
ECONOMIC FORECASTER
7000
6500
5500
5000
4500
4000
3500
Puget Sound Home Sales and Housing Inventory
Jnits, monthly rate Units 36000
fir` ~�►�
L 3 20 00
N
I
2 80 00
2 40 00
2 00 00
16000
12000
1998 2000 2002 2004 2006
— Home sales (1) --- Active home listings (r)
THE PUGET SOUND
ECONOMIC FORECASTER
Puget Sound Average Closed Sales Price
450 $ Thous.
U00
300
250
200
150
--------------,
- - - - - - - - - - - - -' I
--- -- - - -- - - --- - -- -- - --- - -- -- - ------ -- - --- --- -- ---I
1998 2000 2002 2004 2006
THE PUGET goUND
ECONOMIC FORECASTER
Ratio: Puget Sound Average Home Price to
Seattle CPI (ex. housing)
2.8 Index 1982-84 = 1.0
2.4
2.0
1.6
1.2
0.8
0.4
19902nd gtr._qap =_17%
1979 3rd gtr_ga
= 22�_o �
\
i..'
20071 stqtr. gap = 26%
------------
Trend: 1976-2007,, 3.3% per err____
1980 1985 1990 1995 2000 2005
THE PUGET SOUND
ECONOMIC FORECASTER
M
3.5
3.0
2.5
2.0
1.5
Ratio: Puget Sound Average Home Price to
Puget Sound Household Income
2007 2nd qtr. gap = 17%
--------------------------------------------- — . -
1990 2nd qtr. gap _ 14% _r1�
...................o................_------ �--_W..--------------__--_-----
1979 3rd qtr. gap = 24 /o
r
r�
----------- - ------------- -----------------------
TTrend:1970-200712.2% per yr.
1.0 - - ---- --
1970 1975 1980 1985 1990 1995 2000 2005
THE PUCETsoUND
ECONOMIC FORECASTER
Puget Sound Housng Permits
units. annual rate
30000
20000
10000
0
1970
� v 1
'- r ---� ----------- - ------- P.
r
o ea our -qua er moving ave age
1975 1980 1985 1990 1995 2000 2005
- Total --- Single-family --- Multi -family
THE PUGET SOUND
ECONOMIC FORECASTER
Puget Sound Real Estate Excise Tax Monthly Activity
17000 1 Number _ _ $ mil. 5500
16000
15000
14000
13000
12000
11000
10000
-----------------------------------------------
1
---------------------------------------------.-
I � I
--------------------------------- - - - ,,� --- ---- '
------------------------------ ----- --A ----------- r
1
/A
----------- -------------- j,---------------------- -
r��
Lr r f Note: 3-month moving average
9000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
5000
4500
Mfe,
3000
2500
K11111]
1500
Transactions (1) --- Taxable real estate excise activity (r)
THE PUGET SOUND
ECONOMIC FORECASTER
Puget Sound Taxable Retail Sales
r ear -over -year percent cnan
A
I
2000 2002 2004 2006 2008
- Total --- Retail trade ----• Other
THE PUGET SOUND
ECONOMIC FORECASTER
Summary Forecast
May 2008
Annual Percent Change
2006
2007
2008
2009
Puget Sound Region
Employment
3.2
2.8
1.6
0.6
Personal income (cur. $)
9.0
8.0
5.7
4.7
Consumer price index
3.8
3.8
3.9
2.6
Housing permits
-2.2
2.4
-33.0
3.7
Population
1.6
1.7
1.6
1.4
Taxable retail sales (cur. $)
9.1
7.2
2.2
4.2
United States
GDP($00) 2.9 2.2
1.4
2.0
Employment 1.8 1.1
0.1
0.7
Personal income (cur. $) 6.6 6.2
5.0
4.5
Consumer price index 3.2 2.9
3.7
2.5
Housing starts -12.6 -25.8
-29.4
9.4
Source: Blue Chip Economic Indicators, May 10, 2008
The Puget Sound Economic Forecaster, June 2008
THE PUGET SOUND
ECONOMIC FORECASTER
12008 ANNUAL BUDGET
CAPITAL
IMPROVEMENT
PPROGRAM
The Capital Improvement Program of the City of Renton is supported by Transportation
Systems, the Waterworks Utility and the City -owned Renton Airport and Maplewood Golf
Course. The CIP Financial Participation table on page 6-4 summarizes the financial support and
projected investment in capital improvements. The tables on pages 6-5 through 6-13 provide a
more detailed look at the projected total investment.
Capital Improvement Program
6-1
Impact of Capital Improvements on Operatinz Budket
Impact of Capital
Major Project Summary
2008 Budget
Improvements on Operating
(thousands)
Budget
Information Services Division: Information Services (IS) has identified ten major
$ 2,571
Proposed programs are in
development projects for the year 2008 and four major maintenance projects to
support of improved delivery of
improve citywide communication and technology.
constituent services, product
quality and lowered costs of
conducting the city's business.
Downtown Wayfinding and Intra-city Transportation Study: Signage to provide
$ 300
No impacts to operating budget.
clear, consistent directions for auto and pedestrian traffic to various destinations,
attractions, and landmarks. A wayfinding system may include gateway, kiosks,
directional signs, or banners in a unified manner, enhancing the area's unique identity
and creating artistic elements in Downtown. This will help residents and visitors feel
comfortable and confident about coming Downtown, whether it is for business, culture,
or entertainment. In addition, a wayfinding system in Downtown should be expanded
to guide people from The Landing to Downtown. This system provides an opportunity
for Downtown businesses to benefit from The Landin 's regional draw.
Operational Facilities Major Maintenance: This project list includes the major
$ 866
Bathroom renovations will
maintenance required to preserve the value of City assets.
reduce annual maintenance
slightly. Security upgrades will
increase annual maintenance
slightly.
Public Facilities Major Maintenance: The major maintenance Items that are
$ 1,543
No impacts to operating or
necessary in the continuing effort to keep City buildings in sound operating order. The
maintenance budgets, projects
findings of Acquisition, design, and construction of a new maintenance facility and
are designed to maintain asset
storage yard to replace and consolidate two existing sites. Both existing sites are
value. Expect sprinkler testing
located in the Aquifer Protection Zone and have no room for expansion. The first
impact of +/- $1000
maintenance site is along the lower Cedar River, where there are higher and better
uses for the land. The second shop is located in Cedar River Park and will be
displaced by a widening project on Hwy 169 in 2007.
New Maintenance Facility Acquisition, design, and construction of a new
$ 7,800
Construction will commence in
maintenance facility and storage yard to replace and consolidate two existing sites.
2008 with site development
Both existing sites are located in the Aquifer Protection Zone and have no room for
elements and some facility
expansion. The first maintenance site is along the lower Cedar River, where there are
construction. However, the
higher and better uses for the land. The second shop is located in Cedar River Park
new maintenance shop will not
and will be displaced by a widening project on Hwy 169 in 2007,
be occupied until very late in
the year or early in 2009.
Therefore, we expect no
significant impact to the 2008
operating budget.
Parks Major Maintenance: Major maintenance projects are necessary to maintain
$ 730
No impacts to operating budget.
City parks in a safe, good working order.
Projects will extend the life of
existing facilities, increase
safety, and reduce routine
maintenance costs.
Runway 15133 Resurfacing: Resurface Runway 15/33 to repair the one (maybe two)
$ 1,370
No impact to general fund -
dips in the runway near Taxiways Kilo and Delta at the south end of the runway, and
Project is federally funded -
near Taxiway Gulf near the north end of the runway-
95/5 reimburseable basis w.
Airport buget funding 5%
federal match.
Duvall Ave NE: Widening roadway to 5 lanes, includes: curbs, sidewalks, stone
$ 5,682
No impacts to operating budget
drainage, street lighting, channelization, and bikeway from SR-900 to the North City
limits,
in 2008.
I
Rainier Ave -Grady Way to S 2nd: Rainier Ave is a critical corridor in central Renton
$ 10,200
No impacts to operating budget
with existing operational problems and in need of infrastructure enhancements to
in 2008.
provide greater ease of non -motorized and transit -based travel. Remove barriers.
eliminate sub -standard conditions, control and consolidate access points to existing
major businesses, provide an enhanced pedestrian environment.
Capital Improvement Program
6-2
f
I
Impact of Capital Improvements on Operating Budget (continued)
Strander Blvd/ SW 27th St Connect: This project provides a critical four/five lane $ 8,426 Estimated impact on the Street
arterial that will serve as a connector to West Valley Highway (SR-181) and East fund is $3,400 annually.
Valley Road, as well as an arterial connector to SR-167 from the south. The project will
provide a grade -separated crossing at the Union Pacific Railroad (UPRR) and
Burlington Northern Sante Fe (BNSF) railroad tracks. Segments 1 and 2 include from
West Valley Hwy to East Valley Road. Donated right-of-way (not shown below)
includes: Boeing - $2.5 million, Tukwila - $1.2 million, Sound Transit - $55,000 in
addition to funded right-of-way.
Capita! Improvement Program
6-3
CIP Financial Participation (in thousands of dollars)
Participation by Department
2008
2009
2010
2011
2012
2013
Total
General Government
3,181
3,368
10,203
2,168
1,811
1,920
22,651
Community Services
12,748
13,452
4,100
5,203
3,658
6,883
46,044
Transportation
30,279
21,011
13,155
17,217
12,825
27,333
121,819
Airport
1,895
5,040
2,750
925
420
700
11,730
Golf Course
220
330
1,140
220
195
170
2,275
Water Utility
8,875
2,195
2,695
2,945
6,035
6,185
28,930
Wastewater Utility
3,125
2,625
2,625
2,625
2,625
2,625
16,250
Surface Water Utility
3,527
2,577
2,226
2,700
2,050
2,800
15,880
Total CIP by Department
63,850
50,598
38,893
34,003
29,619
48,616
265,578
"Indicates funds reserved
Development by Department
2008
2009
2010
2011
2012
2013
Total
General Government
3,181
3,368
10,203
2,168
1,811
1,920
22,651
Community Services
8,435
8,505
2,850
3,720
2,520
3,695
29,725
Transportation
28,979
19,636
12,093
15.778
11,807
26,316
114,609
Airport
310
4,600
1,300
245
20
20
6,495
Golf Course
50
140
980
50
0
75
1,295
Water Utility
6,100
300
550
900
4,100
4,100
16,050
Wastewater Utility
2,700
1,000
0
0
0
0
3,700
Surface Water Utility
2,385
1,650
1.360
2,060
1,060
860
9,375
Total Development by Department
52,140
39,199
29,336
24,921
21,318
36,986
203,899
Major Maintenance by Department
2008
2009
2010
2011
2012
2013
Total
Community Services
4,313
4,947
1,250
1,483
1,138
3,188
16,319
Transportation
1,300
1,375
1,062
1,439
1,018
1,018
7,210
Airport
1,585
440
1,450
680
400
680
5,235
Golf Course
170
190
160
170
195
95
980
Water Utility
2,610
1,740
2,010
1,710
1,700
1,850
11,620
Wastewater Utility
405
1,625
2,625
2,625
2,625
2,625
12,530
Surface Water Utility
675
560
500
500
850
1,650
4,735
Total Major Maintenance by
Department
11,058
10,877
9,057
8,607
7,926
11,106
58,629
Regulatory Compliance by
Department
2008
2009
2010
2011
2012
2013
Total
Water Utility
165
155
135
335
235
235
1,260
Wastewater Utility
20
0
0
0
0
0
20
Surface Water Utility
467
367
366
140
140
290
1,770
Total Regulatory Compliance by
Department
652
522
501
475
375
525
3,050
U
0
Capital Improvement Program
6-4
General Governmental CIP
Development
2008
2009
2010
2011
2012
2013
Total
Fire Station 13
LLL
0
990
3,900
0
0
0
4,890
Fire Station 15
0
350
5,000
0
0
0
5,350
III Information Services Division
I Neighborhood Grant Program
L
2,571
77
1,651
77
1,723
80
2,C73
95
1,711
100
1,800
120
11,529
549
Downtown Wayfinding
300
0
0
0
0
0
300
South Correction Entity (SCORE)
250
0
0
0
0
0
250
Total Development
3,198
3,068
10,703
2,168
1,811
1,920
22,868
Total General Government CIP
3,198
3,068
10,703
2,168
1,811
1,920
22,868
Capita! Improvement Program
6-5
Community Services CIP
Development
2008
2009
2010
2011
2012
2013
Total
Black River Riparian Forest
0
85
100
200
2,000
0
2,385
a
Henry Moses Aquatic Center
0
120
120
120
120
120
600
Grant Matching Program
100
250
250
250
250
250
1,350
Maplewood Community Park
0
100
300
3,000
0
3,000
6,400
New Maintenance Facility "
7,800
4,500
350
0
0
0
12,650
North Highlands Community Center
0
750
1,250
0
0
0
2,000
Parks, Recreation, & Open Space Plan
150
0
0
0
0
175
325
Regis Park Athletic Field Expansion
300
2,500
0
0
0
0
2,800
Urban Forestry Program
60
60
60
60
60
60
360
Park Master Planning
0
90
90
90
90
90
450
D
Highlands Library Natural Area
0
50
230
0
0
0
280
Integrated Pest Management Program
0
0
100
0
0
0
100
Tiffany Park Recreation Building
25
0
0
0
0
0
25
Total Development
8,435
8,505
2,850
3,720
2,520
3,695
29,725
Major Maintenance
Operational Facilities
866
824
69
71
71
71
1,972
Leased Facilities
366
2,000
0
0
0
0
2,366
Parks General Major Maintenance
730
5B5
330
560
280
2,340
4,825
Public Facilities
1,543
603
241
222
257
227
3,093
Irrigation Renovation & Conservation
227
425
250
250
250
150
1,552
Irrigation Automation & Conservation
60
60
60
60
60
60
360
Parking Lot and Drive Repairs
75
90
90
50
50
60
415
Ball Field Renovation Program
0
100
50
75
50
50
325
a
Pathway, Sidewalk, Patio & Boardwalk
Repairs
200
190
90
25
40
90
635
Court Repairs
40
20
20
120
20
80
300
RCC Readerboard Replacement
156
0
0
0
0
0
156
D
Tree Maintenance
50
50
50
50
60
60
320
Total Major Maintenance
4,313
4,947
1,250
1,483
1,138
3,188
16,319
Total Community Services CIP
12,748
13,452
4,100
5,203
3,658
6,883
46,044
-Indicates funds reserved
i
8
Capital Improvement Program
6-6 O
F
Transportation CIP
Development
2008
2009
2010
2011
2012
2013
Total
1 % for the Arts
30
30
50
30
30
30
200
Arterial Circulation Program
200
250
250
250
250
250
1,450
Barrier Free Transition Plan
50
50
50
50
50
50
300
CBD Bicycle and Pedestrian Conn
18
18
110
80
80
80
386
Duvall Ave NE
2,149
1,433
0
0
0
0
3,582
Duvall Ave NE NE 7th to Sunset
0
0
5
515
2,750
1,980
5,250
Duvall Ave NE - King County
3,533
0
0
0
0
0
3,533
Environmental Monitoring
50
30
30
30
30
30
200
Garden Av N Widening
500
500
0
0
0
0
1,000
GIS Needs Assessment
20
20
20
150
150
150
510
Houser Wy S - Main to Burnett
350
350
350
0
0
0
1,050
Intersection Safety & Mobility
400
250
250
250
250
250
1,650
Lake Wash. By -Park to Coulon Pk
0
0
82
138
0
0
221
Lind Av - SW 16th-SW 43rd
5
5
0
1,914
626
0
2,550
Logan Av Concrete Panel Repair
0
0
460
0
0
0
460
May Creek Bridge Replacement
20
550
160
5
0
0
735
Missing Links Program
30
30
30
30
30
30
180
Monterrey/NE 20th Wall Repair
0
0
0
30
0
0
30
NE 3rd/NE 4th Corridor
2
320
4,050
1,770
1,640
1,640
9,422
NE 4th SUHoguiam Av NE
33
0
0
0
0
0
33
Project Development/Predesign
148
200
200
200
200
200
1,148
Rainier Ave -Grady Way to S 2nd
10,200
6,800
3,700
1,300
0
0
22,000
Ripley Lane
447
0
0
0
0
0
447
RR Crossing Safety Prop.
5
5
0
0
0
10
20
Sam Chastain Lk WA Tr Connect
0
50
650
4,300
0
0
5,000
School Zone Sign Upgrades
100
0
0
0
0
0
100
South Renton Project
2
0
0
0
0
0
2
SR 169 HOV - 140th to SR 900
1,545
0
0
2,550
0
0
4,095
Strander By/SW 27th St Connect.
8,426
8,210
1,097
1,627
5,082
20,961
45,403
TDM Program
65
65
65
65
65
65
390
Traffic Efficiency Program
50
50
50
30
30
30
240
Traffic Safety Program
20
20
40
40
40
40
200
Trans Concurrency
40
10
10
40
10
30
140
Transit Circulator
150
0
0
0
0
0
150
Transit Program
75
75
74
74
74
70
442
Walkway Program
250
250
250
250
380
380
1,760
WSDOT Coordination Program
65
65
60
60
40
40
330
Total Development
28,979
19,636
12,093
15,778
11,807
26,316
114,609
Capital Improvement Program
6-7
Transportation CIP
Major Maintenance
2008
2009
2010
2011
2012
2013
Total
Arterial Rehab. Prog.
470
310
264
636
220
220
2,120
Bridge Inspection & Repair
100
330
50
55
50
50
635
Loop Replacement Program
20
25
30
30
30
30
165
Pole Program
20
20
25
25
25
25
140
Sign Replacement Program
5
5
8
8
8
8
40
Street Overlay Program
685
685
685
685
685
685
4,110
Total Major Maintenance
1,300
1,375
1,062
1,439
1,018
1,018
7,210
Total Transportation CIP 30,279 21,011 13,155 17,217 12,825 27,333 121,819
Capita! Improvement Program
6-8
I
r
Renton Airport CIP
Development
2008
2009
2010
2011
2012
2013
Total
Airport Layout Plan Update
20
0
0
0
0
0
20
Air Side / Land Side Separation
0
150
0
100
0
0
250
608 Hangar Expansion
0
50
1,050
0
0
0
1,100
Precision Approach
0
150
150
20
20
20
360
Apron Redevelopment
0
150
100
0
0
0
250
US Customs Facility
0
1,100
0
0
0
0
1,100
820 Building Demolition
290
0
0
0
0
0
290
820 Building Reconstruction
0
3,000
0
0
0
0
3,000
Demolition of Chamber of Commerce
Building
0
0
0
125
0
0
125
Total Development
310
4,600
1,300
245
20
20
6,495
Maior Maintenance
622 Hangar - Rehabilitation
0
100
1,100
0
0
0
1,200
Runway 15/33 Resurfacing
1,370
0
0
0
0
0
1,370
Maintenance Dredging and Shoreline
Mitigation
115
100
0
0
0
0
215
Airport Office Renovation
0
40
0
0
0
0
40
Cedar River Hangar Roof Replacement
0
100
0
0
0
0
100
Pavement Management Program
0
0
50
500
50
50
650
Surface Water System Rehabilitation
0
0
50
50
50
500
650
Fire Water System Rehabilitation
0
0
0
30
200
30
260
Seaplane Launch Ramp Replacement
0
0
150
0
0
0
150
rrr--- Major Facility Maintenance 100 100 100 100 100 100 600
Total Major Maintenance 1,585 440 1,450 680 400 680 5,235
Total Airport CIP 1,895 5,040 2,750 925 420 700 11,730
1
I
Capital Improvement Program
6-9
Maplewood Golf Course CIP
Development
2008
2009
2010
2011
2012
2013
Total
Reconstruction of the 13th and 15th
Greens
0
120
0
0
0
0
120
Reconstruction of the 1st and 3rd Tee
Boxes
0
20
0
0
0
0
20
Feasibility Study - Maintenance
50
0
0
0
0
0
50
Irrigation Mainline Replacement
0
0
850
0
0
0
850
Reconstruction of Hole #3 Green
0
0
0
0
0
75
75
Hole #3 Hillside Drainage
0
0
0
50
0
0
50
Total Development
50
140
980
50
0
75
1,295
Major Maintenance
Golf Course Major Maintenance 170 190 160 170 195 95 980
Total Major Maintenance 170 190 160 170 195 95 980
Total Golf Course CIP 220 330 1,140 220 195 170 2,275
Capita! Improvement Program
6-10
Water Utility CIP
Development
2008
2009
2010
2011
2012
2013
Total
New Reservoirs & Pump Stations
50
150
500
800
4,000
4,000
9,500
Hazen 565 Zone Reservoir
6,000
0
0
0
0
0
6,000
Supply Development and Water
Quality Improvements
50
150
50
100
100
100
550
Total Development
6,100
300
550
900
4,100
4,100
16,050
L
C
Maior Maintenance
Water Main Replacement
2,100
1,300
1,000
1,000
1,000
1,000
7,400
1-405 Utilities Relocation
100
0
320
0
0
0
420
Automatic Meter Reading Conversion
200
100
500
500
500
500
2,300
Water Utility Maior Maintenance
210
340
190
210
200
350
1,500
Total Major Maintenance
2,610
1,740
2,010
1,710
1,700
1,850
11,620
Regulatory Compliance
Regulatory Compliance Program 165 155 135 335 235 235 1,260
Total Regulatory Compliance 165 155 135 335 235 235 1,260
Total Water Utility CIP 8,875 2,195 2,695 2,945 6,035 6,185 28,930
Capita! Improvement Program
6-11
Wastewater Utility CIP
D
Development
2008 2009 2010
2011
2012
2013
Total
Central Plateau Interceptor Phase II
1,150 0 0
0
0
0
1,150
Heather Downs Interceptor Capacity
Improvements
0 1.000 0
0
0
0
1,000
Duvall Interceptor
Summerwind/Stonegate Lift Station
0 0 0
0
0
0
0
Replacement
2,700 0 0
0
0
0
2,700
Total Development
3,850 1,000 0
0
0
0
4,850
D
Major Maintenance
Major Maintenance
Miscellaneous/Emergency Protects
100 100 100
100
100
100
600
Sanitary Sewer Hydraulic Model
180 100 100
100
100
100
680
lacement
Renton Hill Sewer RReplacement
50
350
1,000
1,000
1,000
700
4,100
(1
en on ewer
Phase IV
0
0
0
0
0
1.100
1,100
Earlington Sewer Replacement
50
400
1,000
1,100
1,000
0
3,550
Earlinglon Sewer Extension
Mr31rR8TT7
0
0
0
0
0
0
0
UO M hu upyr
Model
25
25
25
25
25
25
150
Telemetry Upgrade
0
0
100
0
0
0
100
WSDOT 1-405 Relocations
0
50
0
0
0
0
50
SW 34th Street Interceptor
0
100
0
0
0
0
100
rl
Westview Lift Station Rehabilitation
0
300
0
0
0
0
300
Maior Maintenance
U
Lind Avenue Lift Station Replacement
0
0
0
0
200
600
800
Denny's Lift Station Rehabilitation
Airport Lift Station Rehabilitation
0
0
0
0
0
0
0
300
200
0
0
0
200
300
Total Major Maintenance
405
1,425
2,325
2,625
Z625
Z625
12,030
Regulatory Compliance D
2008 Long -Range Wastewater
Management Plan 20 0 0 0 0 0 20
Total Regulatory Compliance 20 0 0 0 0 0 20
Total Wastewater CIP 4,275 2,425 2,325 2,625 2,625 Z625 16,900
9
D
Capital Improvement Program
t%12
I
r, Surface Water Utility CIP
' Development
2008
2009
2010
2011
2012
2013
Total
Springbrook Creek Wetland and
C
Habitat Mitigation Bank
100
100
100
100
100
100
600
Storm System Improvement and
Replacement
2,150
1,200
1,250
1,800
250
550
7,200
Springbrook Creek Improvements
0
0
0
0
0
200
200
Cedar River Basin
0
0
0
150
700
0
850
Green River Ecosystem Restoration
135
350
10
10
10
10
525
Total Development
2,385
1,650
1,360
2,060
1,060
860
9,375
` Major Maintenance
Small Drainage and Emergency Storm
Projects
250
260
250
250
250
250
1,510
Lower Cedar River Sediment
Management
425
300
250
250
600
1,400
3,225
Total Major Maintenance
675
560
500
500
850
1,650
4,735
Regulatory Compliance
Surface Water Utility Plans and
Programs
240
140
140
140
140
290
1,090
Storm System Field Mapping Project
(NPDES)
227
227
226
0
0
0
680
Total Regulatory Compliance
467
367
366
140
140
290
1,770
Total Surface Water CIP
3,527
2,577
2,226
2,700
2,050
2,800
15,880
Capital Improvement Program
6-13
This page is intentionally left blank
Capital Improvement Program
6-I4
Revenues - Taxes
City of Renton Long Range Financial Planning Tool
CPI Assumption 3% 1 3% 1 3% 1 3% 1 3% 1 3%
2005 2006 2007 2008 2009 2010 2011 2012 2013
Actual Actual Budget Budget Forecast Forecast Forecast Forecast Forecast
Property Taxes
Assessed Value Growth
7.90%
14.0%
15.9%
5%
5%
5%
5%
5%
Raise Levy X%
1
1
1
1
1
1
1
1
New Construction (million)
197 312
262.96
284.48
250
200
200
200
200
Annexation Assessed Value (million)
0.835 13.6
99.28
93.51
10
10
10
10
10
Levy Lid Lift?
No No
I no I
no
No
No
No
No
No
How much?
0.25
0.5
0.5
0.5
0.5
"The Landing"
$1,002,079
2.7%
2.8%
2.7%
2.6%
Total Change
5.8%
5.2% 18.8% 2.7%
2.8% 2.7% 2.6%
Tax Levy Rate
3.237706 3.044303 2.80671
2.5957639 2.6019847 2.501928
2.410597 2.322328 2.237052
Sales Taxes
Auto
11.52%
9.05%
-2.94%
General Retail
11.95%
-11.24%
-1.80%
Services
3.53%
114.92%
9.94%
Construction
-5.53%
7.74%
44.97%
Wholesale
-27.63%
-0.85%
6.550/
Other
-9.72%
-15.69%
18.63%
"The Landing"
2.5%
3.0%
3.0%
3.0%
3.0%
3.0%
3.5%
4.0%
3.0%
3.0%
3.0%
3.0%
4.4%
6.0%
6.0%
6.0%
6.0%
6.0%
-10.0%
3.0%
2.0%
0.0%
2.0%
4.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
$ 865,306
$1,730,611
3.0%
3.0%
3.0%
3.0%
Total
2.73% 9.25% 8.83% 0.7%
3.8%
3.3%
3.0% 3.4% 3.7%
Utility Taxes
Electricity
7.11 %
14.53%
Transfer Station
-5.61 %
-8.55%
TV Cable
16.72%
16.23%
Telephone
-3.73%
-10.82%
Cellular Phone
-1.35%
11.29%
City Utilities
13.60%
5.21 %
Natual Gas
24.42%
27.36%
"The Landing"
4.62%
12%
5%
5%
5%
5%
5%
7.51 %
4%
4%
4%
4%
4%
4%
1.08%
10%
4%
4%
4%
4%
4%
-3.29%
-2%
-2%
-2%
.2%
-2%
-2%
8%
4%
4%
4%
4%
6%
4%
4%
4%
4%
0%
M4%
3%
3%
3%
3%
$ 76.480
4%
4%
4%
4%
Total 7.83% 10.07% 11.01 % 16.7% 3.5% 3.5% 3.6% 3.6% 3.6%
Admissions Tax
"The Landing"
-45.50%-15.14%
24.10%
3%
1 3%
3%
3%
3%
1 3%
$ 186,921
1 $ 373,841
3%
3%
3%
1 3%
Draft dated: 5/22/2008
City of Renton Long Range Financial Planning Tool
Franchise Fees
3.37%
-22.08%
Leasehold Excise
-17.14%
-19.77%
EMS Levy - King Co
3.11 %
3.46%
Gambling Tax
9.14%
-10.60%
Real Estate Excise - Debt Svc
-43.73%
-1.33%
Revenues - Non -Taxes
Business License Fee
19.24%
65.72%
Building Permits
12.68%
-5.55%
Other License / Permits
3.81 %
-15.68%
Block Grants
55.22%
Other Federal / State Grant
27.77%
83.51 %
State Shared Revenue
5.80%
0.30%
Other Intergovernmenta
8.36%
-5.27%
Charges for Service
3.70%
11.04%
Fines and Forfeits
-29.74%
27.75%
Interest Earnings
111.94%
9.50%
Miscellaneous Revenue
-33.27%
19.52%
Non -Revenue
Other Financing Sources
Interfund Revenue
2.42%
-30.60%
Use YTD Actuals for Drivers?
yes - --neage
Expenditures
Personnel Costs
Escalator
Public Safety
Non Public Safety
Change in Workforce (FTEs)
Public Safety
Non Public Safety
Employee Benefits
Medical Benefits
Retirement (using DRs Rate Table)
Other
Non Personnel Costs
46.54%
3%
3%
3%
3%
3%
3%
0.09%
3%
3%
3%
3%
3%
3%
2.83%
4%
3%
3%
3%
3%
3%
1.11 %
3%
0%
0%
0%
0%
0%
31.63%
0%
0%
0%
0%
0%
0%
-29%
5%
3%
3%
3%
3%
3%
32%
3%
-5%
5%
5%
5%
5%
-23%
3%
3%
3%
3%
3%
3%
-15%
0%
0%
0%
0%
0%
0%
-89%
0%
0%
0%
0%
0%
0%
12%
4%
3%
3%
3%
3%
3%
7%
3%
3%
3%
3%
3%
3%
-4%
4%
0%
0%
0%
0%
0%
4%
10%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
-12%
4%
0%
0%
0%
0%
0%
268%
0%
0%
0%
0%
0%
0%
-7%
3%
3%
3%
3%
3%
3%
yes
yes
yes
yes
yes
yes
0
0
0
0
280TO
8.80%
3.50%
5.00%
5.00%
5.00%
5.00%
5.00°%
11.03%
3.50%
5.00%
5.00%
5.00%
5.00%
5.00%
0000000
26%
26%
10%
10%
10%
1 10%
1 10%
10%
55%
44%
-2%
0%
0%
32%
27%
21.06%
3.00%
3.00%
3.00%
1 3.00%
1 3.00%
3.00%
Draft dated: 5/22/2008
City of Renton Long Range Financial Planning Tool
Escalator 1 16% 1 2% 1 3% 1 3% 1 3% 3% 1 3%
Other: (millions)
1 Fire Compensation Cost Savings
2 Debt Service - 2006 LTGO included in debt service lin
3 The Landing Revenues included as separate line it
Draft dated: 5/22/2008
120,000,000
110,000,000
100,000,000
VII txilili> I (III tII I
70,000,000
E= Revenue
i
Expenditure
-fir—Fund Balance
Chart
16,000,000
14,000,000
12,000,000
10,000,000
4,000,000
2,000,000
60,000,000
-
2005
2006
2007
2008
2009
2010
2011
Revenue
70,959,369
74,378,269
83,281,311
94,392,133
101,717,056
104,534,072
107,408,981
Expenditure
70,704,068
72,538,376
81,965,052
95,092,183
102,357,989
108,629,714
113,785,840
Fund Balance
11,223,149
12,131,147
13,929,716
13,229,666
12,588,733
8,493,091
2,116,231
Page 1
Renton's Major Capital Needs 2009-2019
(Cost ranges are approximate)
• The list below outlines capital needs that have not been fully identified or funded in the City's
CIP for 2009 and beyond.
• The needs and uses listed here could be planned and combined to meet multiple needs,
including space that serves the community, public and employees, such as fire stations with
public meeting spaces, a joint maintenance facility used by across multiple departments, or a
mixed -use development for library or city hall.
New Maintenance Facility ($13.1 M)
The consolidation of two existing sites to construct a new maintenance facility and storage yard is an
existing project planned in the City's 6-year CIP. The purchase of the King County property is nearly
complete and site development could proceed in 2008. Preliminary estimates of site development,
building construction and associated costs for the facility could exceed available reserves. Council
approved Ordinance 3938 in March allowing for bonded indebtedness to reimburse the costs of certain
projects. A question facing Renton is whether the New Maintenance Facility is a candidate for some
bonded indebtedness instead of pay -as -you go financing in order to make capital resources available for
other projects.
SCORE (Misdemeanant Jail) Facility ($16 M)
Renton, Federal Way, Auburn, Tukwila, Des Moines and (maybe) Kent are evaluating sites and plan to I
build a misdemeanant jail facility to accommodate their prisoners by the year 2012. April, 2008
estimates show a potential capital construction cost of $90 M for 808 beds; $82 M for 650 beds; and $68
M for 500 beds. Operational cost estimates are estimated by analysis provided by DLR where annual
operating costs were estimated to be approximately $21.8 M for 808 beds; $20 M for 650 beds and $19
M for 500 beds. These costs could be shared by member cities under two models. Under equal
ownership, all six cities would own equal numbers of beds and share equally in the payment of debt and
annual operating costs of the facility. The pro rata model would provide ownership unequally ranging
from 4% to 27% among the cities, and liability for debt and annual operating costs accordingly.
Library Master Plan Recommendations ($2 M - $18 M)
Renton's Library Master Plan recommendations are nearly complete and are scheduled for Council
Committee of the Whole briefing on June 16. Several options exist to respond to the community's
growth, diversity and changing needs and priorities. Plan recommendations are likely to include
investment in library improvements, more programs and services, up-to-date facilities that allow for
meeting, studying, learning, and reading; longer daily and weekly hours; increased partnership,
materials, and staffing. Two options, either maintaining an independent municipal library with
improvements in service levels and facilities through expanded expenditure authority and a continued
reciprocal borrowing agreement with KCLS; or annexing to the King County Library System (KCLS) were
considered. If the City of Renton makes a commitment to remain independent, major upgrades to the
two existing branches, and potentially a new branch could be considered.
New City Hall (—$30 M - $50 M / unknown)
The March 2008 Council workshop included discussion of how to meet the long-term facility needs for
City operations. Consultation with a real estate consulting group is underway to evaluate the concept of
a new city hall facility, including describing the market value of the existing City Hall property, identifying
threshold costs for a new building, and potential options for financing a new facility.
Fire Station 13 (FD 40 Former Station 42) ($4 M - $8 M)
Asset transfer negotiations with Fire District 40 have commenced and must be completed by March 1,
2009. The minimum asset transfer which could result in the transfer of partial ownership of Station 13
totals approximately $2.5M. The station 's approximate value is $10.5 M. Operationally, a shared
ownership situation can be difficult to implement. Depending on the negotiated settlement with FD 40,
if Renton wishes to fully own the Benson Hill station, additional investment may be required.
Fire Station 15 (—$4.5 M / unknown)
Land was purchased to build a fire station in North Renton/Kennydale neighborhood, and medical aid
response to this area of Renton does not meet the response time goals of the Fire & Emergency Services
Department. Options range from the location of an aid car in the area to the construction of a new
station. Available land would allow for a two -bay station that could allow for response by an engine and
aid car for the area. While capital facilities funding has been planned for, the operating costs of such a
facility have not been identified.
Major Maintenance for Parks and Facilities (~$3 M - $5 M annually)
Today, Renton does not plan for major maintenance costs as facilities are constructed, with the
exception of the Henry Moses Aquatic Center. In practice, the City spends about $3.5 M annually to
maintain parks, operational, public and leased facilities, but some maintenance is being deferred each
year. For 2009-2010, major maintenance could be funded at the current level, but would exhaust all
other capital project funding. Revenue sources for basic major maintenance include REET, which is
subject to economic swings, and the source is mingled with major capital project funding. Other cities
usually dedicate other sources to ensure major maintenance is funded and the value of City assets is
preserved. The major maintenance allocation in Fund 316 will likely exceed the need for future major
maintenance.
Ron Regis Park Development ($-2.5 M)
An existing capital project envisions the phased expansion of capacity and programming flexibility by
resolving flooding issues, constructing second ballfields and soccer fields, expansion of parking, addition
of restrooms, a children's play area, picnic shelter. The City is seeking grants and working with partner
organizations to help fund park development. Phasing is necessary in case a time lag exists before grants
are available. A Master Plan effort for the park has been completed and will need to be phased
depending on available resources.
North Highlands Neighborhood Center ($2 M)
At the end of its useful life, this Center needs major work if the facility will continue to be used.
Replacement of the Center has been recommended in the CIP and is a prominent feature of the
Highlands community redevelopment.
Trails and Bicycle Master Plan Needs ($ unknown)
The final Master Plan is approximately 80% complete and the City Council will be briefed on draft
recommendations this summer. The plan envisions a healthier, walkable community. The plan points to
current gaps in trail connections and recommendations are focused on making trail and bike route
connections throughout the City.
Park Property Acquisition & Development ($ unknown)
Renton's Parks, Recreation & Open Space Plan will be completed this year, to include a strategic plan,
inventory of existing facilities, service levels, needs assessment, user demands, and surveys to identify
future needs. The final plan will likely recommend acquisition of property and park development.
Capital Needs in Annexation Areas ($0.5 M - $2.0 M)
A preliminary estimate for Cascade Park identified $345,000 in needs for park development in Benson
Hill . New projects will be added to our 6-year capital improvement plans to develop parks and trails in
Renton's annexation areas, and additional properties such as Renton Park and Boulevard Park will be
transferred to the City after King County develops the regional Soos Creek Trail, necessitating additional
park development. It is presumed that transportation and surface water capital needs identified for
areas that annex to the City will be funded through grants and fees. Additional annexations will prompt
planning for additional unfunded capital needs.
PfAZZA
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s
Table of Contents
Introduction and Acknowledgements ................ page 3
Collaborative Team ............................................ page 4
Site Description .................................................. page 5
Expenses.............................................................. page 6
Funding Sources ................................................. page 7
Community Benefit ............................................ page 8
Summary............................................................. page 9
Plans for the Future .......................................... page 10
Holiday Lights vent Report page 2
3
Introduction and Acknowledgements
The City of Renton Holiday Lights program exemplifies the
spirit of the season and is eagerly awaited each year by the citi-
zens of Renton.
The 2007 Holiday Light program was displayed at three loca-
tions:
♦ Gene Coulon Memorial Beach Park
♦ Piazza Park
♦ Renton City Hall
The program also includes support of the Argosy Cruises Christ-
mas Ship.
The following report presents an overview of the event includ-
ing each City Department role, expenses, personnel costs, spon-
sor support, community benefit, and summary.
Special Thanks to:
Denis Law, Mayor
Renton City Councilmembers
Jay Covington, Chief Executive Office
Terry Higashiyama, Community Services Administrator
Mike Bailey, Finance and Information Services Administrator
Karl Hurst, Print and Mail Coordinator
Cindy Zinck, Finance Analyst Supervisor
Parks Maintainence Division
Facilities Division
Recreation Division
Ivar's Inc.
Puget Sound Energy
oliday Lights Event Report page 3
Collaborative Team
Responsibility for the 2007 Holiday Lights program was shared, many City divi-
sions contributed their expertise and resources for a safe and successful event.
Community Services Department provided:
♦ Leadership for the event
♦ Light installation contract management
♦ Coordination with Piazza Renton
♦ Publicity
♦ Coordination with Argosy Cruises
♦ Coordination with Ivar's Inc.
♦ Erection and dismantling of City owned displays
♦ Coordination of event activities, including hay ride, live entertainment,
sing -a -long, and parking control
♦ Provide electrical and area maintenance as needed
♦ Coordination with Rainier Yacht Club
♦ Coordination with media
Finance and Information Systems assisted with the success of the event by
providing:
♦ Guildance through project accounting
♦ Printed promotional products for the event
Economic Development, Neighborhoods and Strategic Planning assisted with the
success of this event by securing:
♦ Puget Sound Energy as the lead for sponsor of hay ride and sing -a -long
F.
1
Gene Coulon Memorial Beach Park
Located at 1201 Lake Washington Blvd. North,
lighted areas include Ivar's and Kidd Valley restau-
rants including gutter and ridgelines, sequoia trees,
deciduous trees, shrubs, water walk, and lighted
displays.
Site Descriptions
Piazza Park
Located at 3ia Ave. S. and Burnett Ave.
S., lighted areas include, trees, and
shrubbe ry.
Renton City Hall
Located at 1055 South Grady Way,
lighted area's include twenty one decidu-
ous trees located on the west side of City
Hall parallel to Grady Way.
oliday Lights ven ort page 5
Expenses
Hard Costs
Entertainment
$1519.00
Contracted services
$69,385.00
In house printing
$214.00
Supplies
$218.00
Total
$71,336.00
♦ Entertainment includes band, sing -a -long, covered wagon ride.
♦ Contracted services includes cost of lights, personnel and equipment
costs for the installation, maintenance, and removal of Holiday Lights.
♦ In house printing
♦ Supplies include rope, tape, zip ties, spare light bulbs, etc.
Personnel
Benefits
Total
Personnel Costs
$7617.00
36 .00
$11,261.00
* Personnel costs include support of events, parking control, lifeguards, daily
inspection, coordination with lighting vendor, erection and dismantling of city
owned displays.
Total cost
Expenses and Personnel
$82,597.00
Holiday Lights vent sport Apage6 Ml
Outside Funding
Puget Sound Energy
Funding Sources
$1400.00
Ivar's Inc. (contractual obligation)
Community events $12,400.00
% of unanticipated revenue $50,000.00
Total $63,800.00
City of Renton Funded
Personnel and benefits $11,261.00
Entertainment $ 119.00
Supplies $218.00
In House printing $214.00
Balance of contracted services $6985.00
Total $18,797.00
page 7
Community Benefit
In order to gauge the impact the Holiday Lights program has within the commu-
nity, there needs to be a measurement of the value Renton citizens place on the
City's efforts. As a means of determining that value the following were used as a
measurement. Due to the demand, the event is typically publicized in the follow-
ing ways:
Print Publicity:
♦ Renton Reporter - Featured a full front-page photo of Clam Lights and a
related article. Another edition featured an article on the Piazza Renton
Tree Lighting event at the Piazza.
♦ Renton Magazine - Featured a full color photo
♦ Seattle Times - Featured colored photos and a human-interst story about
a local Boy Scout troop visiting Clam Lights at Gene Coulon Memorial
Beach Park.
t
♦ Greater Renton Chamber of Commerce - featured on events calendar
Website Publicity:
♦ Ivar's Inc.
♦ City of Renton
♦ Argosy Cruise Christmas Ship
♦ Ivar's Inc. and Kidd Valley both have a noticeable revenue increase
throughout the duration of the event.
Summary
The Holiday Lights program is an event that thousands of people look forward to
each year. Although many communities have tree lighting ceremonies and sea-
sonal lighted areas Renton is truly unique.
The program includes the contracted service at three sites within the City of
Renton. It also includes support of the opening night of "Clam Lights" at Coulon,
the Piazza Park Tree Lighting, and the Argosy Christmas Ship.
Although typically scheduled close to one another the events give the citizens of
Renton a substantial choice of organized activities to choose from in addition to
enjoying Holiday Lights at their pleasure on a non-event evening.
77.
NP
7 Holiday Lights Ev6n port page 9
Future Plans
The lighting vendor is on a two-year contract covering 2007 and 2008. A mini-
mum of $60,000 is already secured for the 2008 program and additional funding
from Ivar's and sponsorships is expected for the 2008 season.
Electrical capacity is at maximum at Coulon Beach Park therefore limiting further
lighting expansion. As LED lighting becomes more cost effective additional future
lighting and displays may be possible with the same amount of electricity avail-
able.
The Rainier Yacht Club has enjoyed supporting the opening night of Clam Lights
by providing the "Lighted Boat Parade".
Argosy Cruises continues to schedule Coulon as a scheduled stop for the annual
Christmas Ship.
At Piazza Park future plans include a "Santa House". A temporary structure would
be erected where children could visit Santa and have photos taken during the
holiday season. Equipped with electricity and heat "Santa's House" would serve as
an attractive anchor for those visiting the downtown area during the holiday
season.
The Piazza Park area would be well served by additional lighting on Burnett and
Logan Ave's between second and third streets. The present electrical capacity
would need to be improved however the end result would be very appealing.
O
t
2007 IKEA Renton River Days
& City of Renton Event Report
„K�� � :rw-rimier
days
THE
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A
C11-RENTO-N
July 25 & July 27-29, 2007
■ liberty Park •
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'�'R� FIRST SAVINGS BANK aOFRBTO\ r�JiJ1.1 Seafair
s..nh..d r. .:y r...
For complete 2007 Festival information call 425.430.6528 or visit
www.rentonriverdays.org
� HEART
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V)1 OF
,or RENTON
Acknowledgements:
Denis Law, Mayor
Renton City Councilmembers
Jay Covington, Chief Administrative Officer
Terry Higashiyama, Community Services Administrator
Kevin Milosevich, Chief of Police
Dave Daniels, Chief of Fire & Emergency Services Administrator
Michael Bailey, Finance & IS Administrator
Renton River Days Board of Directors & Volunteer Committee Chairs
Sonja Mejlaender, Festival Coordinator & Community Relations & Events
Bonnie Rerecich, Community Services Resource and Funding Manager
Erin Snodgrass, Resource and Events Intern
Cindy Zink, Finance Analyst Supervisor
Karl Hurst, Print and Mail Coordinator
Kathleen McClincy, Commander
Table of Contents
Introduction
2
Collaborative Effort
3
City Expenses
4
Festival Expenses
5
City Personnel Costs
6
Festival Volunteerism
7
Festival Sponsor Support
8
Festival Revenues
9
Benefit to Community
Marketing
10
I nvolvement
11
Charitable Contributions
12
Summary
13
Plans for the Future
14
Appendix
A. A Few Survey Statistics
15
B. Survey Tool
16
Introduction
Mission
Renton River Days is a family -oriented community celebration comprised of events and
activities that enhance the positive image and quality of life of the greater Renton community.
Since 1986, Renton River Days, Inc., has worked in close association and partnership with
the City of Renton to produce Renton's family festival. The festival features events, activities
and amenities for youth, families, and seniors, that make Renton a great community in which
to live, work, play and raise families.
This celebration joins residents, businesses, organizations, and Puget Sound region tourists
for a wonderful variety of nearly 45 events and special programs over several days. Average
attendance is 45,000 for the multi -day celebration.
Annual favorites include:
• Arts & Crafts
• Juried Fine Arts
• Food
• Stage Entertainment
• Parade
• Activities for Kids
• Community Booths
• Sport Events
• Visual & Performing Arts
• Rubber Duck Race
• Boat and Car Shows
"Discover the Heart of Renton" was more than just a theme for 2007 IKEA Renton River
Days. It was an invitation to explore the diverse offerings that highlighted Renton's passion
for music, art, food and it's active lifestyle.
The following report presents an overview of the event including each City department's role,
expenses (City and Festival), personnel costs, sponsor support, benefits to community, sum-
mary and appendixes showing the survey tool used at the event.
W
W
N
ollaborative Effort
Festival management consists of Renton River Days Board of Directors, Festival Coor-
dinator, event committee volunteers, and the City of Renton. The City serves as the
source of support for safety, emergency preparedness, and logistics of parks, facilities,
and streets. City departments contribute expertise, resources, and cooperation to en-
sure a safe and successful event.
Renton River Days:
• Develops and executes strategic plan
• Ensures financial stability
• Safeguards festival mission, values,
and image
• Provides leadership and direction as
needed for dozens of committee
chairs and hundreds of volunteers to
produce nearly 45 events and pro-
grams
City of Renton Support:
• Police, Fire, and Emergency Manage-
ment Services provided:
Enforcement of ,� ark rules
Incident Action Plan to ensure
safety and preparedness during
the event
S.W.A.T. and an Aid Unit on -site
for incident response and first
aid
Traffic control and monitoring
festival permit parking
• Planning, Building, and Public Works
were instrumental by:
Strategically hanging street ban-
ners
Designing maps of the park
Managing road closures & detours
Finance and Information Systems as-
sisted in the success of the event by:
Providing guidance through Project
Accounting
Printing event promotional materi-
als
Assisting with web design and up-
dates
• Community Services provided:
Pre and post facility and park
maintenance
Traffic control
Customer service
2007
Hard Costs ($11,755.00)
In-house Printing ($2,137.00)
Loss of Picnic
Shelter Revenue ($2,940.00)
Loss of Rental
Rev at RCC & ($17,000.00)
SAC
Total Cost ($33,832.00)
• Hard Costs include the City's annual financial contribution of $10,000 and depart-
ment materials and supplies.
• New in 2007, was the inclusion of printing costs, produced by the City Print Shop.
Figures were provided by the Print Shop and Mail Coordinator, Finance and Informa-
tion Services.
• Picnic shelters at Liberty Park and Gene Coulon Memorial Beach Park are not rented
during festival week, therefore, loss of revenue has been included for six days.
• The Senior Activity Center and Renton Community Center facilities at not at full rental
capacity because of scheduled festival events at these locations.
2007
Festival
Managed ($163,430.00)
Expenses
Sanctioned
Event Managed ($121,875.00)
Expenses
Total Festival
Expenses ($285,305.00)
• IKEA Renton River Days is financially managed "outside" the City of Renton Finance
Department. As an independent 501 c4, the festival carries its own special event in-
surance and a host of other expenses such as entertainer contracts, graphic and text
services, print promotions, equipment rental, souvenirs, products, and supplies.
• Included in the 2007 Festival Managed Expenses are contributions as a result of
some of the festival's charitable events (i.e. Golf Tournament and Fun Run & Walk).
For 2007, this totaled $21,467.00 in contributions from the festival's budget.
• Sanctioned Events manage their own budgets. Indicated in the table above, are
2007 expenses that were not included in the "Festival's" Expenses.
• Included in the Sanctioned Events expenses, are contributions of prizes, awards, or
donations totaling $15,525.00.
City Personnel Cost
Staff Costs
Cost of Benefits
Totals
.aI
r
2007
($66,182.00)
($26,292.00)
($92,474.00)
• Project accounting was used this year in an effort to be more efficient in capturing
staff hours dedicated to the event. Pre and post hours spent on the project are in-
cluded in the total. The Finance & IS Department assisted with technology, tracking
and also in estimating benefits.
2007 benefits reflect full calculations for Police and Fire Suppression at 47.85% of
the value of staff time. Due to the use of part-time employees, the Community Ser-
vices and Public Works benefit figures have been based on an average of 36% of the
value of staff time (part-time employees do not receive a benefits package).
2007 Renton River Days/City Report 6
Renton River Days Volunteerism
Renton .5teri�al5ticie tY
Estimated #
Estimated # of Volunteer
of RRD
Volunteers
649
Hours
Contributed
Hourly Rate*
$18.77
TOTAL
$131,014.06
*The value of volunteer time is based on the average hourly earnings of all production
and non -supervisory workers on private non -farm payrolls (as determined by the Bu-
reau of Labor Statistics). Independent Sector takes this figure and increases it by 12
percent to estimate for benefits.
This estimated statistic reflects all volunteerism involved with the coordination and im-
plementation of the festival including Board of Directors, event committee chairs and
their volunteer planning committees. There are numerous ways in which people con-
tribute such as setting up art shows, selling souvenirs, assisting with children's activi-
ties, and managing entertainment stages and load/unload for hundreds of performers.
2007 Renton River Days/City Report
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Sponsor
Festival Title and Co -Sponsors
City of Renton
Event Sponsors and
Festival Contributors
Sanctioned Event Sponsors
Total Sponsorship
Amount of Sponsorship
(Financial and In -Kind)
$45,000.00
$10,000.00
$75,000.00
$32,000.00
$162,000.00
(Financial and In -Kind)
• Since 1986, Renton River Days has benefited from strong sponsor and community
support.
• Festival management secures Title Sponsor, Co -Sponsor, Event Sponsor and Con-
tributor support from the greater Renton community. These funds provide the finan-
cial backbone for festival management, volunteer committees and sanctioned events
to host nearly 45 events and activities over the multi -day festival. Nearly all activities
and events are free to children.
• While festival organizers help secure sponsorship for sanctioned events, these com-
mittees also procure their own support outside of IKEA Renton River Days. Sanc-
tioned event committees strive to be as self-sustaining as possible and minimize re-
quests to River Days and the City.
Revenue Sources Amount
(Fees and Sales)
Festival Managed Events $46,850.00
Sanctioned Event Managed $100,000.00
Events
Total 2007 Revenues $1463850.00
(Fees and Sales)
Festival Management and Sanctioned Event Committees track revenues from
sources such as participant and registration fees (i.e. Nibble Food Vendor, Commu-
nity Booth Exhibitors, Fun Run & Walk and Golf Tournament team registrations), and
sales (i.e. All Teen Musical ticket sales, Rubber Ducky Derby sales or souvenir
sales).
IKEA Renton River Days marketing includes print promotions and website developments by both festival
management and sanctioned event committees, and in -kind publicity from media partners.
Too numerous to list individually, primary print pieces for 2007 IKEA Renton River Days included:
• 25,000 1/3 sheets inserted into City of Renton Utility Bills
• Complete festival information included in 55,000 City of Renton Community Services Summer Rec-
reation Guides
• 650 11 "x17" storefront posters
• 30,000 Festival Schedules (14,000 inserted into Renton School District report cards)
• 40,000 Official Guides produced in cooperation with the Renton Reporter
Total cost for 2007 festival produced print promotions was $13,275.00. This includes design fees, print-
ing, and includes the City's Print Shop "inhouse" expense detailed on page 7.
IKEA Renton River Days also benefits from in -kind publicity from media partners. The leveraged value
of this publicity for the festival, the City of Renton, and greater Renton community is very significant.
Most notable for 2007, were features included in:
• Renton Magazine
• Renton Reporter
• Seattle Times, Seattle Post-[ntelligencer SE Living and Shop SE
• Radio promotions due to Boatstock media relationships
Value of Marketing
*Dollar Value of Impressions or Quantity
Media Partner
Festival Website *10 cents per hit 29,000 hits
In -Kind Print Renton Magazine 2 features
Publicity
Seattle Times, Seattle PI, SE Liv- 9 features
ing and Shop SE
Renton Reporter 21 features
Radio
Live broadcast, announce- KJR-FM, KJR-AM, KFNK, 375 announce-
ments, web links, and KUBE, and KNBQ ments; 13 hours
email blasts to listener da- of live broadcast
tabase
City Street Banners *10 cents per car 4 locations
35 days x 88,000 impressions
*Information regarding the Dollar Value of Impressions was
provided by Ken Saunderson of Hamilton/Saunderson.)
Total Value
$2,900.00
$3,360.00
$10,140.00
$24,000.00
$48,500.00
Total Value $396,900.00
Renton's community family festival, IKEA Renton River Days, embraces the inclusion of numerous
community groups, sponsors, sanctioned event planning committees, and volunteers.
The Parade (125 entries and 2,000 participants), Kids' Day (est. 5,000 attendees), stage entertain-
ment (60 groups totaling 550 performers), 40 Exhibitor Booths for Kids' Day, 60 Community Booths for
the 3-day weekend, and 13 food vendors are organized by festival based committees. Many more
events and activities have become part of the fabric of IKEA Renton River Days because of extensive
citizen involvement and aligning their existing event to River Days.
All totaled, in 2007, the festival was composed of 45 events and programs over 11 days.
2007 festival features organized and directed by their "own" teams include:
• All Teen Musical
• Art Market
• BMW Car Show
• Boatstock & Wakeboard Invitational
• Canoe & Kayak Regatta
• Chalk Art Contest
• Downtown Antique Sidewalk Sale
• Downtown Window Display Contest
• Fun Run & Walk
• Golf Tournament
• Kids Photo ID Cards
• Museum Activities
• Pancake Breakfast
• Quilt Show
• Renton Annual Art Show
• Rubber Ducky Derby
• Senior Day Picnic
• Skate Park Exhibition
• Soccer Tournament
• Tennis Tournaments
• Volkssport Fun Walks
In addition to the participation, organization, and attendees involved in the events listed above, is ac-
knowledging the volunteerism connected with River Days. As noted on Page 10, River Days had 649
volunteers and 6,980 hours with an accumulative value of $131,014.
As a result of IKEA Renton River Days events, activities, and contests,
thousands of dollars of net proceeds, donations, awards and prizes
funnel directly back into the Renton community and benefit
non -profits, art programs, social service agencies, and programs for children.
$60,000.00 Charitable Events and Donations
Ducky Derby, Fun Run, & Golf Tournaments
Soccer Tournament
Communities In Schools
Sam Chastain Memorial Scholarship Fund
Mount Peak Pony Club, Key Club, Renton High cheer Squad
And more ...
$20,000.00 Juried Art Awards, Art Grant,
Contest/Event Awards and Prizes
Annual Art Show Awards
Doug Kyes Art Grant Program
Municipal Arts Commission Coloring Contest Prizes
Chalk Art & Quilt Show Prizes
Ducky Derby Prizes
Downtown Merchant Window Display Contest Prizes
Fun Run and Golf Tournament Prizes
And more ...
$80,000.00 Total �
w
v� -
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Summary
2007
City Expenses ($33,832.00)
Personnel Costs ($92,474.00)
Total Cost to City ($126,306.00)
Festival Expenses
($285,305.00)
Festival Revenues
$146,850.00
Festival Sponsorship
$162,000.00
Estimate Total "Net" from
$ 23,545.00
All Sanctioned Events
2007 Value of Festival
Volunteer Time $131,014.00
(649 Volunteers; 6,980 Hrs)
Marketing Benefit 2007
Value of Major $396,900.00
Marketing
City & Festival ($13,275.00)
Marketing Expenses
Benefit/Value $383,625.00
after Cost
Charitable
Contributions
Net Proceeds of
Events & Dona-
tions
Awards, Grants &
Prizes
Benefit to
Community
2007
$60,000.00
$20,000.00
$80,000.00
Future
Planning for next year's event begins almost as soon as the current year has con-
cluded. With post -event debriefs and after -action reports, the festival's Board of Direc-
tors, festival management, event committees, and City staff chart successes, chal-
lenges, lessons learned, and considerations for future events.
Future plans for Renton River Days include:
• Board Development such as Board Member Job & Committee Descriptions and
formalizing Nominating process
• Develop Event Committee Job Descriptions, Timelines and Task Lists
• Develop Festival Policies & Procedures
• Develop Rules & Guidelines for festival processes
• Long-range planning at annual retreats with facilitator
• Continue to work in cooperation with City processes and work to minimize re-
quests for City resources and support
• Explore ways in which to target Renton's diverse populations, increase their
awareness of festival events and activities, and grow participation
• Continue to feature culturally diverse stage performers, artists, and food vendors
• Explore feasibility, costs, and implementation for strategic placement of recycling
bins at festival events
• Improve effectiveness of survey by widening the outreach to all event committees
for their participants and attendees
• Include common landmarks on event map for easy reference and incident re-
sponse
• Combine separate Police and Fire Incident Action Plans into a combined user-
friendly special event format
City staff continues to provide critical support to festival organizers and event commit-
tees in conducting research, evaluating options, and facilitating effective discussions
and decision -making to achieve the best event management possible for future Renton
River Days community celebrations in Renton.
I - m r r - 2007 Renton River Days/City Report
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Report 15
Appendix B
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2007 IKEA Renton River Days Visitor Survey
When did you attend IKEA Renton River Days? ❑Wed ❑Thurs ❑Fri ❑Sat ❑Sun
Have you attended the festival before? ❑ Yes ❑ No Are you likely to attend in the future? ❑ Yes ❑ No
How did you travel to and from this festival? Please mark all that apply
❑ Private Vehicle ❑Public Transit ❑Shuttle ❑ Dropped Off ❑ Walked/Biked LJOther
How many miles did you travel to get to this event? ❑ less than 10 ❑ 10-20 ❑ 20-30 ❑ 30-40 ❑ over 40
Would you have still come to Renton if River Days had not been in progress? ❑ Yes ❑ No
How did you hear about the festival? ❑ Friend/Family J Official Guide ❑ Website ❑ Newspaper
❑ Promotlonal Materials ❑Street Banners ❑ Other
Please rate the following: 1= poor 3= average 5= great
• Entertainment 1 2 3 4 5
• Quality of Arts & Crafts 1 2 3 4 5
• Variety of Food Available 1 2 3 4 5
• Quality of Information Booths 1 2 3 4 5
• Safety 1 2 3 4 5
• Overall Festival Experience 1 2 3 4 5
While visiting Renton for this event approximately how much do/did you anticipate spending?
❑ $20 or less ❑ $20-$40 ❑ $40-$60 ❑ $60-$80 ❑ $80-$100 ❑ $100 or more
Including yourself, how many people came in your party? ❑ 1 ❑ 2 ❑ 3 ❑ 4 ❑ 5 ❑ More
Did your party include any children 12 years old or younger? ❑ Yes ❑ No
Age? ❑ under 18 ❑ 18-35 ❑ 36-50 ❑ 51-64 ❑ 65+
Suggestions for 2008 festival?