Finance - Meeting Agenda MINUTES/20… · Finance Packet 10.16.12 Page 1. Pike Place Market...

Finance - Meeting Agenda

Date: Tuesday, October 16th, 2012

Time: 3:00 p.m. – 6:00 p.m.

Location: Elliot Bay Conference Room

Committee Members: Matt Hanna (Chair), Bruce Lorig (Vice-Chair), David Ghoddousi, Gerry

Kumata, Ann Magnano, and Gloria Skouge

3:00pm I. Administrative:

A. Approval of Agenda

B. Approval of September 18th , 2012 Minutes

Chair

3:05pm II. Announcements and/or Community Comments

3:10pm III. Review of the Financial Statements for September 30th 2012

A. PDA Operating Statements

Sabina Proto

3:40pm IV. Checking Account Activity Report Sabina Proto

3:45pm V. Presentations and Discussion Items

A. Budget 2013 Presentation

Leadership Team

& Managers

5:40pm VI. Items for the Consent Agenda Chair

5:45pm VII. Public Comment

5:50pm VIII. Concerns of Committee Members Chair

6:00pm IX. Adjournment Chair

Enclosures: Minutes for September 18th, 2012

Financial Statements for September 2012

Proposed Operating and Capital Projects Budget for 2013

Finance Packet 10.16.12

Pike Place Market Preservation and Development Authority (PDA)

FINANCE COMMITTEE

Meeting Minutes

Tuesday September 25th, 2012

4:30 p.m. to 6:00 p.m.

Atrium Conference Room

Committee Members Present: Matt Hanna, Bruce Lorig, Ann Magnano, David Ghoddousi, Gloria

Skouge

Other Council Members Present: Betty Halfon

Staff Present: Ben Franz-Knight, Sabina Proto, Jay Schalow, Erica Bates, Dianna Goodsell

Others Present: Rolf Trautmann,

The meeting was called to order at 4:31 p.m. by Matt Hanna, Chair.

I. Administrative

A. Approval of the Agenda

The agenda was approved by acclamation.

B. Approval of the August 21st, 2012 Minutes

The minutes were approved by acclamation.

C. Announcements and Community Comments

None

II. Review of the Financial Statements for August 2012

A. PDA Operating Statements

Sabina Proto discussed the Balance Sheet and PDA Operating Statement ending for the Month of August.

Under Current Assets there is minimal change on the Unrestricted Cash Balance. She reported the

following: The Designated Cash decreased due to the fund transfers out of the Capital Reserves for the

expenditures related to capital projects. The Current Liabilities increased mainly in the Accounts Payable

category. The Long Term Debt decreased due to the monthly payments on loans, mortgage and bonds. The

Net Operating Capital had increased overall. Current Operating Result increased from the prior month and

the Levy Funds received in total as of today is $ 64.67 million; amount received in 2012 YTD is $6.12

million. Under the Accounts Receivable Activity Report accounts receivable decreased during July, mainly in

the Commercial category.

Sabina Proto reported under the Accounts Receivable Activity Report, the accounts receivable increased in

August mainly in the Commercial category. The Total Revenue for the end of August 2012 was $9,438,456

or over budget by $96.924. The Total Operating Expense was $ 6,765,541 or under budget by $ 340,771.

The Net Result for the end of August was $ 22,672,915 which is $ 437,695 over budget. The Net Result

after Debt Service & Reserves: Annual Budget was $655,616, and the actual YTD amount exceeds the

budget by $437,695.


Finance Committee

2012

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85 Pike Street, Room 500 Seattle, WA 98101 (206) 682-7453 www.pikeplacemarket.org

Sabina Proto presented the Revenue in the Operating Statement and stated that the Commercial Revenue is

over budget by $ 33,663. She added overall there was good performance of the Percent Rent. She had

noted that however, the Office Rent is under budget because of the unanticipated construction impacts of

the Levy Phase III. She also noted that one of the ATM’s in not operational and that no rent has been

collected for this year. The Residential Revenue variance was positive because of the impact of the budget

revisions implemented in July and considerable decrease on vacancies. The Daystall Revenue had better

sales in the Crafts area resulting in less days needed; under Farmers, there were some predominant farmers

who had left in combination of a late start to the season. To finish, the Surface and Miscellaneous Revenue is

in track and the Garage Revenue is over budget by $ 74,000 which is better than expected.

Sabina Proto lastly reported that the Operating Expenses are on track in some departments and under

budget in others. She reported there have been some staffing vacancies, as well as the timing of invoices was

different from the budget trending. She noted that the Percent Rent spreadsheet presents the performance

of the percent rent, concluding that the Percent Rent is over budget by $59,000. She lasted reported that

the Capital Reserve Status Report represents the amount contributed to the reserve, and the amount spent

year to date out of the capital reserve.

There was a brief discussion that followed.

David Ghoddousi inquired about receiving specific Daystall data from the tenants and staff. David had also

asked about the farmer’s success with the Satellite markets and if all farmers have the opportunity to

participate in the Satellite markets.

Ben Franz-Knight commented on the Daystall Revenue trending, correlating that the decrease in attendance

by vendors amounts to less attendance fees collected by the PDA. He also noted that there are two

separate issues regarding the Daystall merchants and farmers; there would be more in-depth discussion at

the Full Council Retreat.

III. Checking Account Activity Report

The Checking Account Activity Report was distributed to Dianna Goodsell, Administrative Services

Coordinator.

V. Other Reports and Action Items

None

VI. Staff Reports

A. Discussion Regarding Options for the PDA Pension Plan

Rolf Trautmann from TM&A presented the Discussion of Retirement Plan Options for the PDA Pension

Plan. He distributed a copy of the Retirement Plan options, which has been included with these minutes. He

discussed a summary of the current retirement plan program and provided options for the Pike Place

Market in restructuring the Retirement Program. The options for restructuring the current Retirement

Program include: Moving the Profit Sharing Plan to a daily valued plan, making employer matching

contributions to encourage employee deferrals and termination of the Profit Sharing Plan.

There was a discussion that followed.

Gerry Kumata inquired about employee alumni accumulating to the pension plan and the need to plan for

further costs in the future with the accumulations.

Bruce Lorig noted that we should have a quarterly statement for the Retirement Program.

Matt Hanna noted to have Ben Franz-Knight to include estimates in the budget for the total costs for the

Retirement Program options. He also inquired about staff access to their plan in comparison with the DRP

and Profit Sharing Plan.

B. Budgetary Review of Proposed Spending Resolutions

None


Finance Committee

2012

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C. Capital Projects Spending Status

Sabina Proto passed out a chart regarding the Capital Projects spending status. Ben reviewed the Capital

Status spending chart and provided an update on where we are with the costs and allocation of the funds.

He noted that we are in the process of prioritizing the capital projects. He also added that there should be a

resolution before the end of the year for the capital projects assessment. A copy of the Capital Projects

Spending Status chart has been included with these minutes.

D. 2013 Budget Process Update

Ben gave a general overview on the approach to the budget this year. He stated that this year’s budget

would be conservative compared with last year’s budget, especially with PC1-North in process. Sabina Proto

informed the committee that the budget process has begun. She reviewed the upcoming budget process

schedule, also noting that next month’s meeting will start at 3:00 pm. She reviewed important budget dates

which as follows:

Tuesday, September 25th PDA Finance Committee Regular Meeting: Budget discussion, goals and

direction with the Finance Committee council members.

Tuesday, October 9th Community Budget Meeting: PDA staff will give an overview of the 2013

programs, discuss the opportunities and challenges that will affect the 2013 budget, and hear the

public’s ideas and comments on Market needs that affect the budget.

Tuesday, October 16th PDA Finance Committee Regular Meeting: Presentation of 2013 Proposed

Final Budget.

Wednesday, November 7th Special Finance Committee Meeting Budget Discussion & Public

Comments: Finance Committee members and staff will discuss recommended changes to the 2013

Budget as presented to the FAM Committee on 10/16/12. The Committee will also hold a public

hearing for tenants and the public to ask questions make comments or offer suggestions on the 2013

Proposed Budget.

Tuesday, November 20th PDA Finance Committee Regular Meeting: Additional public comment and

report on public dialogue feedback; Finance Committee discussion and direction provided to the

PDA staff for recommended changes to the 2013 Proposed Budget. The Finance Committee adopts

the final recommended 2013 Budget and Budget resolutions for consideration by Full Council.

Thursday, November 29th Regular PDA Council Meeting: The full PDA Council reviews the Finance

& Asset Management Committee recommendations and adopts the 2013 Final Budget.

There was a brief discussion that followed.

Gerry Kumata noted that many of the capital investments projects will need to be maintained and hopes to

have these items budgeted; we should be funding a central plan for this category.

Bruce Lorig noted his concerns with the Security department staffing and operations costs. He would still

like to have a consultant brought in to evaluate the current Security program and efficiencies.

Matt Hanna inquired to Ben Franz-Knight about the costs and process for hiring a security consultant. He

added that he is in favor of examining the security operations from an outsider’s perspective; the question is

the costs. He also noted that it would be helpful to know from an experienced professional how the

security department works.

Ben Franz-Knight stated that the questions asked by the committee members were good. He added that the

members should identify ways for all of the departments to be more efficient. He encourages the committee

to challenge all of the departments, not isolating just one.

E. Review of Financial Resources for PC1-North Project

Ben Franz-Knight briefly reviewed the financial resources for the PC1-North Project. He noted that the

Seattle city mayor released the budget in which more money is allocated total, but less allocated for the

year 2013. He stated that the budget will need to be shifted.

VII. Items for the Consent Agenda


Finance Committee

2012

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None

VIII. Public Comment

None

IX. Concerns of Committee Members

None

X. Adjournment

The meeting was adjourned at 6:06 p.m. by Matt Hanna

Meeting minutes submitted by:

Dianna Goodsell, Administrative Services Coordinator


Budget Overview

Pike Place Market Preservation and Development Authority

2013


The Pike Place Market Preservation and Development Authority 2013 Operating and

Capital Budgets

The Pike Place Market Preservation and Development Authority (PDA) is a non-profit public

corporation chartered by the City of Seattle in 1973. As a public trustee, the PDA serves as the

manager and steward of the city’s historic Public Market Center. The PDA’s mission and charter

purposes are:

Preserving the traditional character and uses of the Public Market;

Renewing, rehabilitating, preserving, restoring and developing structures and open

spaces in and around the Market Historical District;

Continuing the opportunity for Public Market farmers, merchants, residents, shoppers

and visitors to carry on traditional market activities;

Initiating programs to expand food retailing in the District, especially the sale of local

farm produce;

Providing goods, services and housing to low and moderate income people;

Promoting small-owner operated businesses that have the opportunity to thrive in a

unique community where producers meet and interact with consumers;

Considering the views of the public and the Market community in establishing policies,

programs and budgets to further the preservation objectives of the Market.


2013 Budget Objectives and Highlights

The 2013 Pike Place Market Preservation and Development Authority budget presents a

continued investment in maintaining, managing and supporting the Markets core infrastructure,

mission and programs. In addition to ensuring prudent levels of staffing and resources for basic

services in facilities, security, maintenance and capital programs the 2013 budget also includes

allocations to support the following key goals:

Continue development of concepts for PC1N.

A concentrated investment in Farm and Food programs including staff support for the

Economy Atrium Kitchen and Event Spaces, small farmer recruitment and retention and

facilitation of region wide Food Hub and Food Web efforts.

Restructuring of Daystall, Farm and Busker management efforts to facilitate more

focused efforts in the areas of arts and crafts, food and farm.

Management resources to support quality analysis and research of strategic issues.

Marketing programs designed to support key goals and deepen connections between

Seattle residents and the Market including downtown resident use of the Market as their

daily food and shopping resource.

The national economic landscape is complicated by this year’s Presidential Election and

concerns over the potential inability of congress to take critical action in the early part of 2013.

Setting aside dire forecasts for a “fiscal cliff” should congress be unable to act swiftly and

effectively, general projections show continued slow growth with anticipated gains in

employment and housing. Projections for Washington State and the regional economy are

consistent with national trends with the Seattle area rebounding faster in areas including housing

and, in particular, rental markets.

Throughout 2012 the Pike Place Market demonstrated great resilience; generally performing

better then the broader economy. This can be attributed to several factors. First, the Market is a

well known destination in addition to serving as a beloved local resource for daily produce and

goods. As a destination, the Market is generally perceived as having great value with no cost of

entry beyond parking or public transit fare. Further, the Market serves as a food center including

produce, prepared meals and full service restaurants. Most notably, we saw increases in

mercantile sales in 2012, a strong indication that the economy is moving in a direction that

provides more discretionary spending.

Projected increases in hiring for 2013 are also positive signals for downtown and the Market

with Amazon rapidly expanding in South Lake Union, new institutions of higher learning

establishing campuses and a host of technology firms and corporations strengthening their

footholds in downtown. Gains in tourism, including increases in cruise passenger traffic are also

positive signs. With the increase in employment opportunities, it will also be important for us to

continue to invest in our workforce in the Market to retain and inspire our dedicated and

knowledgeable staff.

We will continue to make prudent investments in annual capital improvements to buildings and

infrastructure in the Market. While a vast majority of these needs have been met through the


levy-funded renovation, thoughtful and consistent annual reinvestment in the Market will ensure

long-term maintenance and preservation. The 2013 budget does reflect anticipated decreases in

expenses in the areas of plumbing and electrical supplies with critical capital project needs

addressed as part of our ongoing preventive maintenance efforts.

Planning for the Market’s future will continue with further development of concepts for PC1N

schematic designs and further analysis of program components, revenue projections and

anticipated long-term operating costs. We will continue to actively monitor the impacts to the

Market as work related to removal of the viaduct continues to move north including traffic

patterns on Western.

The 2013 Budget also reflects a dedicated investment in the Market’s founding mission in food

and farm. The realization of the long held goal of establishing a demonstration kitchen, coupled

with the ability to meet the demand for event space in the Market will allow us to support a

significant community need. This effort dovetails with substantial focus on our Farm Program,

including detailed analysis of the Market’s role in regional Food Huband food equity initiatives,

and support for the growth and success of small farmers and food providers. The Economy

Atrium Kitchen and our Farm Program are distinct disciplines; however, the synergy of these

two efforts will allow the Market to continue to take a leading role in directly connecting

consumers to their food producers and further establish the Market as the center of Seattle’s food

culture.

Finally, the 2013 Budget also provides modest, but critically needed, support for the Social

Service efforts in the Market. Funding is allocated to support a new partnership with AmeriCorps

that will provide three full-time volunteers supporting a broad range of services including the

Food Bank, Senior Center, and food equity and access portions of our Farm Program. A modest

increase has also been included to support continued resident advocacy efforts ensuring that

residents in need are connected with available services. In conclusion, the 2013 Budget reflects a

conservative approach to revenue forecasts while also being realistic given the resilient

performance of the Market. The budget also applies a thoughtful and judicious allocation of

expenses and project priorities that support key goals for 2013.

2013 Budget Summary:

Total Revenue $ 15,179,094

(percentage increase) 6.00%

Total Operating Expenses $11,173,255

(percentage increase) 4.00%

Debt Service $ 1,784,287


Designated Reserves and Pension $ 307,481

Net Surplus $ 1,914,072

The 2013 Budget was developed through a process that started with multiple internal tests

applied to cost centers and revenue projections. This included soliciting estimates from vendors

and service providers, reviewing annualized actuals and prior year performance. Following

rough budget projections, we engaged in a series of internal manager meetings, departmental

discussions and one-on-one analysis with managers and directors to prioritize based on need,

growth potential and opportunities for improvement. We also conduct multiple PDA Finance

Committee meetings and Community Budget Meetings. The proposed budget incorporates the

thoughtful dialogue and recommended changes that were generated during the budget review

process.

REVENUE

Generally, revenue is expected to be $ 804,434 higher in 2013 when compared to the budget

amounts for 2012. This projection is based on year-to-date performance (through October 2012)

and reflects the continued steady performance of the market as a whole. With major renovation

ending, we expect added revenue from spaces that have been held vacant to accommodate

construction impacts.

Commercial tenant revenue represents nearly 60% of our total revenue and is most affected by

economic conditions. The business health of the Market has been remarkably steady despite

larger economic reports and we expect this strength to continue.

Residential revenue is projected to be higher in 2013 compared to 2012. Contract rent payments

for rent subsidies will increase and a significant reduction in vacancy is expected because

renovation is complete and all apartments are available to lease.

Daystall revenues will be slightly higher in 2013 due to the increase of the attendance and daily

rate.

Parking Revenue is expected to increase based on the actual(s) performance during 2012.

Investment income remains nominal. Interest rates are paying next to nothing, thus continue to

reduce our investment income. And, since our funds are considered public funds we have limited

opportunity for investment and the majority of our reserves are invested in the Local

Government Investment Pool.


OPERATING EXPENSES

Expenses are budgeted to be higher in 2013 than in 2012. The total count of FTE (full time

employees) is the same as 2012 with one addition FTE, and we have proposed a wage increase

for all PDA staff non-union and union (union workers have a set increase guaranteed). Utilities

expenses are expected to increase slightly during 2012 due to the rate increases.

We propose a budget with a net surplus before capital spending and maintain an adequate

operating reserve that remains intact.

DEBT SERVICE AND RESERVES

Debt service and reserves are fixed obligations with the exception of the PDA employee pension

contribution. This is a discretionary expenditure subject to the parameters in the pension

document. The contribution proposed in the 2013 budget will be confirmed after the final 2012

operating results are available. A significant debt payment in 2012 is scheduled to retire one of

the Loans related to the NMTC Financing used for the construction of the LaSalle Commercial.

CAPITAL PROJECTS

The PDA capital projects budget represents ongoing capital work outside the major levy-funded

renovation. These projects will be funded from PDA operations and CRRF (Capital Repair and

Replacement Fund). The capital program for 2013 includes necessary repairs and replacements

in our buildings, as well as some large projects like the Livingston Baker Fire and Life-Safety

upgrades, Market-wide signage and restoring the Sanitary Building Exterior.

2013 Budgeted Revenue

The Pike Place Market PDA generates rental revenues from commercial, residential and Daystall

tenants, parking fees from the Public Market Parking Garage and surface lots, and miscellaneous

programs and investment income as outlined below.

COMMERCIAL REVENUE

Commercial revenue consists of base rent, percent rent, Common Area Utility (CAUT) and

Maintenance (COMA) charges, direct utility reimbursements, and other miscellaneous charges.

Base rent consists of rents generated from retail and office leases. The majority of retail and

office tenants are on multi-year leases with annual increases based on the Consumer Price Index

or 3% whichever is higher. Renovation did provide a few changes in the amount and type of


commercial space in the Market and the opportunity to expand for several businesses and a

couple new ones. As the tenants grow into these new spaces the budgeted figure for base rent is

computed on a tenant by tenant basis, by building. A return to a low vacancy rate is assumed as

we complete a year of finding tenants for new spaces opened during renovation.

Retail tenants are assessed common area charges, categorized as common area utilities (CAUT)

and common area maintenance (COMA). These charges will remain at the current combined

assessment of 59% of Base Rent in 2013. The allocated portion of all utilities used in operations

of the commercial spaces is covered by CAUT and direct billings to tenants for utilities used on

their premises. The new digital metering system has greatly improved the accuracy of these

reimbursements. Due to our role as a public place, retail center, and our larger than normal

common areas, the PDA continues to limit the pass-through of COMA expenses to less than

what is allowed by the commercial leases. We will re-evaluate the pass- through charges and

determine if any changes should be made. At this point we can estimate some utility costs of the

new equipment and mechanical systems and have evidence of savings in operating costs.

Overall, we will need additional time to monitor operating costs for net changes, as new public

amenities (restrooms, elevators, improved cooling of common areas) will affect utility

consumptions.

Sales based Percentage rent represents approximately 29% of the total commercial revenue. This

rent component is based on tenant sales and calculated against a monthly base rent payment.

The increase on the percent rent is budgeted to be 3% compared to 2012.

RESIDENTIAL REVENUE

Residential revenue represents market rate and HUD subsidized tenant rents, laundry fees, and

miscellaneous charges. We are proposing an increase of 2 % to 3% for market rate and annual

adjustments of 1% to 1.5% for HUD subsidies under contract. The Section 8 contract for 48 units

of elderly subsidized housing in the Stewart House was renewed for a 20 year contract. HUD

subsidies for 8 units in the Sanitary Market l expired during 2012. Current residents received

vouchers that they can use to continue residency in the building or move elsewhere. Vacant

units will be converted to market rate rents. Increases in residential income for 2013 are

primarily expected due to the completion of renovation, which has kept about 10% of our

housing inventory off-line. During 2013, we will make changes in the structure of budget

reports to more accurately track vacancy loss in residential income, with the goal of maintaining

a 4% vacancy rate. During 2013 we will also make some adjustments in market rate rents to

bring all units closer to a similar standard rate, while remaining at affordable levels for median

income households.


DAYSTALL REVENUE

Daystall revenue represents the collected charges for the crafts and farmer day table rents,

storage and locker unit charges, and permits fees.

A total of 184 Daystalls are rented on a daily basis to a pool of over 200 craftspeople and nearly

100 farmers.

The PDA is proposing a $0.20 rent increase in daily Daystall rents for 2013.

PARKING REVENUE

The Garage and Surface Parking revenue represents all receipts from daily and monthly parking

fees. We attempt to manage our parking volumes and ultimately the revenue by changing

monthly and daily rates seasonally, increasing during busy months and decreasing during the

slower months. In spring of 2010 we implemented the automated parking system, which has

shown positive impact on the garage revenue. The new system requires the customers to pay and

get their ticket validated prior to exiting.

We anticipate that revenue will continue to grow during 2013.

We are participating in a program with the City and State that are part of the Alaskan Way

Viaduct Mitigation Efforts. We are optimistic that continued participation in these programs will

result in increased volumes of short term parkers in the garage, and ultimately the revenue.

MARKET FOUNDATION REVENUE

In 2013, the Market Foundation will contribute $ 20,000 to the PDA to fund Market Fresh

Coupons to support low income families and seniors. Recipients redeem these coupons at farm

tables and highstalls for fresh produce. The PDA reimburses the tenant and/or farmer for

coupons redeemed.

MISCELLANEOUS REVENUE

Miscellaneous revenues are received through security contracts, management fees, investment

earnings, filming contracts, and trademark fees. The majority is interest earnings on PDA

reserves. The interest rates will continue to remain low during the coming year. The interest rate

in 2013 is estimated to average 0.19%. We invest our surplus fund in the Local Government

Investment Pool (LGIP), which has averaged less than 0.18% throughout 2012. Being a


government we are restricted as to our investment options to FDIC insured banks and

government securities.

2013 Budgeted Expenses

The majority of the PDA expense budget is spent on operations or tenant services including;

security, maintenance, facilities, utilities, insurance, and property management services. This

represents approximately 73% of the total budgeted expenses for 2013. Management and

administrative expenses represent 17% and marketing, farm and other programmatic expenses

represent 10% of our total expenses. Departments and 2013 programs are described as follows:

Property Management

COMMERCIAL

The Commercial Property Management Department consists of four full-time employees: two

property managers, a lease administrator and the department manager.

The department acts as the primary liaison to over 200 commercial tenants who occupy

approximately 369,500 square feet of retail space. Responsibilities include new tenant

recruitment and development, lease administration, negotiations of new lease terms and

conditions, lease document and applicable amendments preparation, renegotiation of existing

leases coming to term, and establishment of tenant and customer service standards.

The department also oversees administration of rent increases; enforcement of all lease

provisions, covenants and conditions; and tenant assistance with the application process for the

Market Historical Commission (MHC). Due to the significance of percentage rent to overall

income, the staff will conduct some test audits to confirm correct reporting of retail sales by

tenants.

The commercial property staff is very involved in tenant communication and negotiations

resulting from the renovation, and they are often the tenants’ first contact to report problems.

With the Markets unique tenant base, our hands-on tenant service culture has worked well for us

as property managers. Among initiatives for 2013 will be the start of a phased replacement of

directory signage for businesses and amenities throughout the Historical District.


RESIDENTIAL

The Residential Property Management Department consists of eight full-time employees: the

department manager, a compliance specialist, three building managers and three facilities staff.

The residential staff manages and cares for 333 units of the eight Market buildings that are

market-rate and low-income HUD subsidized housing. Staff additionally ensures that the

buildings stay within HUD compliance rules. The PDA is the contracted manager for the LaSalle

and is reimbursed an allocated portion of the department’s expenses by this entity.

The HUD regulations in the subsidized housing require a very specialized knowledge base,

annual income recertification of each tenant, regular training and regulatory updates. The work

of the residential staff in Market buildings is more than just a building manager.

Our staff is known for excellent service to our low income population. We provide special

attention to the residents, many of which are elderly and fragile, and may need some assistance

with living independently in the community.

DAYSTALL AND FARM

The Daystall and Farm Departments consist of five full-time employees who are responsible for

managing the hundreds of farm and craft tables that are rented daily to permit holders as well as

managing and the farm program activities and events here at Pike Place. In addition they oversee

the permitting of over 400 Buskers and the daily rentals of the Rummage Hall.

Staff is responsible for recruiting new farmers and craft vendors and carrying out inspections to

verify compliance with the rules in craft production and farm. Additionally, they oversee rules

compliance by performers, performer dispute resolution, as well as regulate and modify the

Daystall Rules and Regulations each year.

The Daystall staff is also responsible, in cooperation with the Marketing and Communications

department and the new Community Programs and Events department, with the planning and

execution of special events including the semi-annual Arcade Lights, Flower Festival, weekly

summer Chef Demos, and others as requested.

Assisted by several seasonal interns, this department also leads the implementation of the

programs and events that occur during the summer Farm Season and logistics and set up of the

remote farmers markets. They support Market farmers and promote farm programs such as Farm

Days on Wednesdays, Saturdays and Sundays, administer the WIC/SFMNP/SNAP/Debit

programs, and organize distribution and redemption of Market Fresh Coupons and Pike Place

promotional farm coupons. Farm staff additionally works with area farms, agricultural extension,


and farmers’ market resource organizations to provide opportunities for Market farmers to stay

current on issues in Washington agriculture and to recruit farmers to Pike Place Market.

PARKING

The Parking Department consists of 3 full-time employees and operates for 15 hours per day.

The Parking Department is responsible for operating the 535-stall parking garage. Pricing is

monitored based on surrounding competition, special events, and seasons.

We have estimated increase on the services provided by Facilities, Maintenance, Accounting and

IT departments as they have absorbed new tasks related to the new parking system. We will see

an increase in bank transaction fees as more people will be paying by debit or credit card.

Operations

FACILITIES

The Facilities Department consists of 26 full-time employees in a 24/7 operation.

The Facilities staff provides 24-hour cleaning with environmentally safe products to the inside

and outside spaces of the Pike Place Market. They are responsible for providing a clean and safe

environment for the more than nine million visitors, as well as merchants and residents who live,

shop and do business in the Market each year. Additionally, facilities staff maintains the lighting,

landscaping, garbage and recycling needs of the Market. This includes dumping more than 4

million pounds of garbage down the garbage chute each year, recycling in excess of 1.6 million

pounds of compostable waste, 440,000 pounds of glass, 500,000 pounds of cardboard, 20,000

gallons of cooking oil and 420,000 pounds of mixed paper, cans and plastic. Facilities staff also

recycles all of the expired fluorescent lighting, appliances and electronics generated in the

common and residential areas of the Market.

SECURITY

The Security Department consists of 20 full-time employees, as well as 15 part-time off-duty

Seattle police officers.

The uniformed Security staff officers provide 24-hour security and safety services within the

Market, and interact with and monitor the safety of customers, staff, tenants and residents on a


continuing basis. We generally have 3-5 officers per shift, with the greater numbers on weekend

days. The PDA also employs off-duty Seattle Police Officers and works closely with the Seattle

Fire Department for purposes of emergency preparedness and response.

Security staff are often the first responders in emergency and off- hour situations, both property

and people related. They are the designated contact for all Market calls during non-office hours.

Additionally, security is providing fire watch services to the construction site and new

assignments as needed during the renovation.

MAINTENANCE

The Maintenance Department is budgeting ten full-time employees.

The Maintenance staff maintains and repairs the PDA’s thirteen buildings, with emphasis on

preventative maintenance including fire and life safety, building repairs, and painting.

Additionally, they oversee the elevator maintenance contracts, as well as the HVAC system

(Heating Ventilation and Cooling) and cooler maintenance contracts. The Maintenance

department works closely with the Capital Projects department to coordinate in-house and

contracted maintenance and capital projects.

The Maintenance staff also manages the operation of the new systems installed in the Market

through renovation which have required different skill sets and technical certifications and

licenses, such as boiler and electrician licenses and training in electronic HVAC controls.

CAPITAL PROJECTS

The Capital Projects Department includes two full- time employees and one part time employee

who manage the PDA’s ongoing capital program.

The PDA Capital Projects managers are responsible for managing and overseeing the budgeted

capital projects planned for 2013 that are not included in the levy-funded renovation project.

These projects are listed in the capital section of this budget. These managers are responsible for

the design and bidding process when applicable, the scope, schedule, and budget for each

project, oversee the contractor and maintain the contract process and files in order to maintain

compliance with PDA policies and public works contracting. They work in conjunction with the

maintenance staff to coordinate the timeline and efficiency of both maintenance and capital

projects.

The Capital Projects department will also continue to assist with long-term planning efforts

including PC1N.


UTILITIES

Utility expenses include the costs of electricity, water/sewer, recycling, garbage, and pest control

for the tenants and common areas. A major objective in the Levy renovation was to provide a

central plant and dramatically increase the number and accuracy of metered service to tenant

spaces for water, electricity and cooling. In 2012 we expanded the system of improved utility

billing to the Economy and Soames-Dunn Recovery of utility costs associated with common

areas and public amenities is funded in part from through CAUT charges which are also reflected

in the Commercial Revenue budget.

The new central plant in the garage came on line in the first quarter of 2010. We have seen an

increase in gas and electricity usage to power the new boilers and fluid coolers. The new

electrical and HVAC service and new metering systems provide us with the opportunity to now

closely monitor energy usage patterns throughout the market, down to the hour. This greatly

increases our ability to quickly and accurately pinpoint “weak spots” and to implement

conservation measures.

INSURANCE

Our annual insurance renewal is May 1. The 2013 budget reflects actual rates through April 30

and for the remainder of 2013 we are budgeting insurance costs to be 5% higher than actual rates

for 2012.

Primary coverage is for property damage and liability to protect the Market’s properties in the

event of earthquake, fire, and personal damage lawsuits.

Administration

MANAGEMENT

The Management Department consists of six full-time employees. Department Directors are not

charged to their departments, but to the management department.

The Executive Director, Department Directors, and the Project Manager work with the PDA

Council to develop and implement the strategic goals of the Market. They provide information to

the PDA Council for their work in developing policy and decision - making.


The Management team oversees all departments within the PDA and represents the Market in

various capacities throughout the City and downtown community. They work on all issues within

the various departments and develop department direction and annual work plans.

FINANCE

The Finance Department consists of five full-time employees.

The Finance Department is responsible for the overall accounting, tenant billing, and

disbursements for the PDA’s revenues and operating expenses, as well as for the LaSalle Senior

Housing LLC. They oversee the yearly independent audit, the State audit, the LaSalle Senior

Housing LLC audit, and the audits for QALICB 1 and 2. We have taken the step to engage the

same audit form for all of our audits, other than the State audit, to improve efficiency in the audit

process and to reduce the cost. The Finance Department prepares financial reports for

management, the PDA Council and lenders as well as the annual PDA operating budget.

In addition, the Finance Department oversees compliance with the PDA’s debt requirements, tax

credit financing requirements, and federal and state grant requirements, tax returns and all other

government reporting requirements.

OFFICE ADMINISTRATION and HUMAN RESOURCES

The Office Administration and Human Resources departments consist of five full-time staff.

The Office Administration staff manages the daily office needs, reception, meeting minutes

recording, committee packages preparation and payroll functions. Office Admin answers or

directs all public inquiry received at the main PDA office and provides administrative support to

all other PDA staff.

The Human Resources staff is responsible for planning and overseeing employee hiring and

terminations, employee benefit programs, training and recognition, employee safety programs,

union negotiations, as well as responding to all employee-related issues and concerns.

INFORMATION SYSTEMS

The Information Systems Department consists of two full-time employees who manage the

PDA’s information systems and communications infrastructure, as well as providing technical

support for staff. Staffing levels are the same as in 2012.


Programs

MARKETING AND COMMUNICATIONS

The Marketing and Communications Department consists of three full-time employees and

manages all of Pike Place Market’s advertising, promotion, media relations, and internal and

external communications, as well as a school program which helps educate area students in

grades 2-5 about Pike Place Market, and basic food-education. The Marketing and

Communications Department works closely with the Daystall Department on the development,

marketing and execution of special events and programs.

The Marketing and Communications Department generates revenue through the trademark

licensing program, developing contracts and managing royalty payments, as well as by

coordinating filming and photography requests for commercial use.

In 2013 our focus will be on engaging and energizing Seattle-area residents – especially those

who work or live downtown – to make the Pike Place Market a consistent shopping destination.

In addition, we will help promote the traditional values and unique character of the Market to

those who are less-frequent visitors, or who are experiencing the Market for the first time.

At the center of our 2013 Marketing efforts will be two seasonal campaigns – one in summer

focusing on our farmers and farm programs, and one in winter designed to encourage shopping at

the Market during the busy holiday season. A third campaign will take place in the spring

“shoulder season” and focus on promoting the Market’s character and qualities – local, authentic,

unique. Whenever possible, messages about the convenience and affordability of our parking

garage will be woven into these campaigns.

To support these communications efforts we will begin an update of the look of our website in

4Q 2012, to launch sometime in early 2013. We will also be updating and expanding our

brochure to better educate consumers about the Market and our businesses as well as to leverage

new maps and navigation landmarks developed as part of the wayfinding project.

Social media and media relations will continue to play a key role in the day-to-day conversation

we engage in with our customers and supporters, and we will actively manage our strategy to

take advantage of new opportunities for developing customer loyalty.

MARKET FOUNDATION

The Pike Place Market Foundation is an independent, private nonprofit organization with a 40

member board of directors. The Market Foundation is an important partner with the PDA that

ensures the health of both the social fabric and the physical buildings and character of the

historical Market.


The mission of the Foundation is “To preserve the diversity and traditions of the Pike Place

Market neighborhood.” It accomplishes its mission by raising funds to support the operation of

the Market’s human service agencies; the Pike Market Senior Center, Pike Market Child Care &

Preschool, Pike Market Medical Clinic, and the Pike Market Food Bank.

The PDA supports the salary for 2 of its five employees in its operating budget and a portion of

two social work positions through a grant- type arrangement, one at the Pike Market Medical

Clinic and one at the Pike Market Senior Center. These and some other minor administrative

expenses are reflected in the PDA budget as our support of this program.

The PDA provides this support because we believe that the Foundation’s mission is important to

the overall Market culture, however because of its distinct mission and management over its

resources, it is not considered to be a component or department of the PDA.

There are two proposed changes for the 2013 Budget:

-Additional support for the Resident Advocate Program.

-Support the Volunteer Program

Volunteer Program

The Pike Place Market Foundation (PPMF) is investing time and resource into creating a

volunteer program to engage members of the community and donors who seek ways to be

involved in the work of foundation and the service providers in the Market.

The motivation for creating this program stems from an analysis of the operations of the service

providers and the Foundation regarding “how can the PDA help build capacity to address the

increasing needs of the clients in the Market service structure”. The answer is to build a

sustainable structure to engage more volunteers in more ways. PPMF currently has an

extremely limited structure and there is no agency-wide volunteer program. Each organization

involves volunteers in only limited ways (special events, limited office work, Board and

committees). All four service agencies agree that to have a streamlined, efficient system for

recruiting, training and placing volunteers in projects throughout the market will greatly enhance

their ability to serve their clients.

The PPMF has been accepted as a site for an Americorp-Vista volunteer service member and

will be “hiring” a service corp. member in Jan. 2013 to create the volunteer program for the

whole family of service providers. They will be housed at the PPMF. In addition to this

position, the PPMF is working in coalition with the food bank and the Senior Center to “hire”

two more service members, one to work exclusively on building the food bank’s capacity to

procure food resources and the second to work with the PDA on food programs such as

FoodLink, Market Fresh Coupons and other Farm-to-Table programs.


Atrium Kitchen and Economy Event Rooms

Developing the Atrium Kitchen and Economy Market Event Spaces creates an opportunity to

expand the relationship with our existing customers and to cultivate new ones by allowing

shoppers to complete the farm-to-table cycle while enjoying a unique experience in one of the

city’s most iconic locations.

Facilities include the historic Goodwin Library with a view of Pike Place, a large meeting room

and annex (formerly operated as Top of the Market), and the Economy Atrium. All levels are

now accessible by elevator with a convenient loading bay on Post Alley.

The newest feature will be the Atrium Kitchen—a new commercial kitchen designed specifically

for educational events, private dining and catering for larger events, as well as providing an

approved space for Market farmers to prepare samples and clean the equipment used in their

daily businesses.

This business venture is designed to bring additional food shoppers into the Market, to celebrate

its location and identity as a food destination of international appeal, and on a very simple basis,

to introduce people to the joy of cooking and sharing meals together. Importantly, these new

facilities are especially suited to creating activation in the Market during winter months and on

weekdays, times most likely to attract local, regular customers.

The facilities will also provide a unique opportunity to host special food-related entertainment—

networking groups, public demonstrations, product launches, and competitive cooking events—

targeted toward the ever-increasing “foodie” audience.

The service will be of value to current tenants of the Pike Place Market PDA seeking temporary

venues for special events they are unable to host on their premises, in addition to the many

farmers who have expressed interest in using a commissary space to prepare their product and

clean their equipment. There are also opportunities to expand current PDA programs, which may

include providing ongoing education to farmers interested in developing cottage-industry

businesses and value-added goods; cooking classes that may range from basic cooking skills to

“tasting tours” of the Pike Place Market; and possible partnerships with area non-profits that

promote nutrition and food security.

The rental of these facilities should provide sufficient revenue to cover operating expenses and

approximate rental income that would be derived from this commercial space if leased to a

tenant. At the end of twelve months of continuous operation, a progress report including

financial performance, client satisfaction and advance bookings will be presented to Council.


October 16, 2012

PDA Operating Budget


2013

Proposed by the Pike Place Market PDA Staff


2013 Operating Budget2012 2012 2013 2013

DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments

BUDGET Annualized BUDGET BUDGET

COMMERCIAL REVENUE

311100-00 Base Rent - Retail 3,133,428 3,152,989 3,183,256 Based on rent increase of 3% CPI, with 3% overall vacancy factor.

311100-01 Base Rent - Office 310,995 283,142 441,345 Office rent includes services and studios. Increase due to leasing office

being held for Renovation. Garage commercial revenue is shown on

Garage Revenue Budget of approx. $36,904; ATMs revenue included.

311100-05 Additional Rent - Capital Improvments 8,920 8,897 8,892 Based on actuals. Used for items charged as additional rent related to a

specific capital project to improve a tenant space. (Hands of the World

FCU, City Fish Cooler, Choice Produce Cooler)

311100-04 Prep Space 23,722 26,695 45,176 Prep space for LePanier, Mr. D's, Max's also includes Piroshky Piroshky

& PP Chowder. Rent shows prior year plus 3% increase.

newAtrium Kitchen and Other Rentable

Spaces- 80,000

Rents from Atrium Kitchen, Atrium Conference Room,Elliot Bay

Conference Room.

Total Base Rent 3,758,669

311200-00 Percent Rent 2,577,357 2,596,722 2,661,810 2,661,810 Based on Jul 2011 thru Jun 2012 actuals, Yardi report shows a 3%

increase over prior year budgeted amount for same period.

311300-00 CAUT - % 853,632 852,302 894,579 29% of Base Rent - Retail (Less Garage & LB)

311400-00 COMA - % 883,102 881,752 925,426 30% of Base Rent - Retail. (Less Garage & LB)

311400-01 Livingston-Baker CAM 31,000 27,715 27,030 Based on prior year actuals. (does not inlcude water/utility charge).

Clinic does not pay in this category.

Total CAUT/COMA 1,847,035

311400-05 CAM - Pine Bldg (DELETE) 16,769 14,673 - - Delete - No more Lorig Leases; All PDA Leases as of 2012

311600-00Third-Party Billed Utilities

(Electricity/Water)480,000 484,287 480,000

Payments from Priority Submetering billing of electricity & water

(Electricity 25K per month, water 15K per month).

311800-00 Direct Garbage - Commercial 136,700 147,600 156,952 Based on August 2012 charges which are set-up as standard monthly

charges due to the fluctuation of prior year renovation credits.

311900-00 Direct Pest Control - Commercial 24,000 27,178 27,959 Based on August 2012 charges wich are set-up as standard monthly

charges due to the fluctuation of prior year renovation credits.

311950-00 Direct Gas - Commercial 4,280 3,498 4,280 Used last year's budget $ as placeholder. Based on last 5-years estimate

$3,000 average (w/o 2009 value)? Need to find a baseline.

313300-00 Hood Cleaning 3,500 2,562 2,220 Reimbursement - Hood Cleaning (offsets 481011-03). Based on annualize

actual charges.

Total Direct Utilities / Other 671,411

313100-00 R&M Reimburse - Maintenance 5,000 3,091 5,000 R&M from work orders for labor and parts billed to Commercial tenants.

Actuals will vary depending on work order requests.

313500-00 R&M Reimburse - Facilities 300 - 300 R&M from work orders for labor and parts billed to Commercial tenants.

Actuals will vary depending on work order requests.

488313-00 Sales Tax - R&M Reimburse (460) (268) (465) Sales tax due on materials purchased.

Total Tenant Reimbursement-net tax 4,835

314200-00 Storage 82,000 95,935 127,482 127,482 Charage is $.25 per cu/ft. Increase due to all storage rates updated in

2012; Currently 8 vacancies; anticipate leasing at least 50%.

314200-01 Cooler 46,814 35,436 42,500 42,500 Charge is $.30 per cu/ft and shows current Rent w/NO vacancies.

314500-00 Late Fees - Rent 8,000 8,864 7,000 Based on 2012 Annualized Actuals Actuals.

314500-01 Late Fees - Sales Report 7,100 7,150 7,000 Based on 2012 Annualized Actuals Actuals.

314500-02 Penalties / Service Charges 300 1,200 1,000 Based on 2012 Annualized Actuals Actuals.

Total Late Fees / Service Charges 15,000

TOTAL COMMERCIAL REVENUE 8,636,459 8,661,419 9,128,742 9,128,742 COMMERCIAL REVENUE

Page 1





RESIDENTIAL REVENUE

322000-00 Gross Potential Rent 2,526,410 2,526,410 2,607,046 All Market Rate units will have a rent increase from 2% to 3%. Included

here are also Sanitary and LB units with HCV. HUD units will have an

increase 1.0%-1.5%

322010-00 Vacancy (255,629) (260,152) (116,406) Vacancy ranges from 3%-5%

Total Tenant Residential Rent 2,270,781 2,266,258 2,490,640

324200-00 Storage 7,000 7,897 8,000 8,000

324500-00 Late Fees-Service Charges 3,000 2,715 3,000 3,000 Market-rate & Low Income=$35; Very Low Income = $5 on the 5th plus

$1 per day not exceeding $30.00/mo/HUD.

329200-00 Laundry 15,000 18,082 18,000 Contracted coin operated machines in Residential buildings

488329-00 Sales Tax - Laundry (1,500) (1,568) (1,562) 9.5% sales tax.

Total Laundry - net tax 16,438

TOTAL RESIDENTIAL REVENUE 2,294,281 2,293,384 2,518,078 2,518,078 RESIDENTIAL REVENUE

Page 2





QALICB (Net)

358010-00QALICB Share of Fairley and Leland

Revenue(2,159,988) (2,159,988) (2,429,828) (2,429,828) Fairley and Leland revenues transferred to QALICB.

358020-00Reimbursement Operating Costs from

QALICB1,511,455 1,511,455 1,556,798

PDA is reimbursed for Operating Costs from QALICB-Per QALICB

Operating Agreement.

358030-00 Lease Payment from QALICB 406,844 406,844 419,800 PDA is reimbursed for Master Lease payment from QALICB-Per QALICB


358040-00 Mgt Fee from QALICB 140,349 140,349 320,575 PDA is reimbursed for Management Fee from QALICB-Per QALICB


386400-06Investment Income from Investment

Fund QB152,789 52,789 52,789 Investment Income from Investment Fund QB1 (only the cash portion)

Total Reimbursement from QALICB 2,349,962

TOTAL QALICB (48,551) (48,551) (79,866) (79,866)

Page 3





QB2 (Net)

359010-00 QB2 Share of Revenue (4,463,651) (4,463,651) (4,634,154) (4,634,154) Corner Market, Sanitary, Economy, Triangle, Stewart, Soames

359020-00Reimbursement for Capital

Improvements paid by PDA2,049,337 2,049,337 767,386

PDA is reimbursed for Capital Improvments and Tenant Improvements-

Per QB2 Operating Agreement.

Grant from QB2 1,210,913 Grant from QB2 per QB2 Board approval

359030-00 CAUT & COMA 1,064,059 1,064,059 1,074,484 PDA is reimbursed for CAUT and COMA payment from QB2-Per QB2


359040-00 Mgt Fee and Developer Fee from QB2 698,980 698,980 928,704 PDA is reimbursed for Management Fee and Developer Fee from QB2-Per

QB2 Operating Agreement.

386400-07Investment Income from Investment

Fund QB2641,207 641,207 641,207 Investment Income from Investment Fund QB2

Total Reimbursement from QB2 4,622,694

TOTAL QB2 (10,068) (10,068) (11,460) (11,460)

Page 4





DAYSTALL AND FARM REVENUE

333200-00 Daily Crafts 730,000 720,060 752,000 752,000 Plan to recruit 20 new craftspeople. We currently have 210 permitted

craftspeople. Propose a $.20 rent increase per day.

333300-00 Daily Farmers 210,000 219,569 235,000 235,000 Propose a $.20 rent increase per day. We anticipate to maintain our rolls

at 80 farmers.

334200-00 Cooler Rent 6,200 7,146 12,500 12,500 We anticipate adding new farm coolers.

334300-00 Locker Rent 50,200 59,145 51,000 51,000 There will be some displacement with possible reno of Stewart House

locker area.

334500-00 Performer Permits 9,000 12,680 10,500 Estimate 350 performers permits $30.

334500-01 Craft Permits 8,400 7,630 8,050 Estimated 230 craft permits at $35.

334500-02 Farm Permits 2,800 3,045 3,000 Estimated 80 farm permits at $35.

Total Permit Revenue 21,550

334410-00 North Arcade Lights 50,000 50,000 50,000 50,000 Based on April' event.

334100-00 Rummage Hall 10,400 12,950 12,630 12,630 Restructure rents: $35 per day Mon-Thurs / $65 Fri-Sun. (current is $50

per day) to attract more renters to the weekdays.

488314-00 Sales Tax Rummage Hall (988) (1,200) (2,007) (2,007) Sales tax rate of 9.5%.

334500-03 Late Fee - Rent 11,400 14,675 12,000 12,000 Anticipate an average of 40 late fees per month at $25 (craft & farm

accounts if paid after the 25th of the month)

TOTAL DAYSTALL REVENUE 1,087,412 1,105,700 1,144,673 1,144,673 DAYSTALL REVENUE

Page 5





SURFACE PARKING REVENUE - Blanchard, Desimone & Lenora

355100-00 Surface Parking - Daily 630,000 638,613 650,000 Slight increase based on Republic estimate and projected loss of parking

in area.

355100-07 Surface Parking - Monthly 110,000 118,426 125,000 Desimone & Blanchard monthly revenue will remain static.

488355-00

&442033-01Sales Tax & B&O Tax (61,783) (64,784) (66,355) 9.5% sales tax on Daily & Monthly revenue and B&O Tax.

488355-01 Commercial Parking Tax (75,820) (78,951) (80,868) 12.5% tax

Total Surface Parking - net tax 627,777

355100-11 Parking Reimbursement - Farmer 1,500 1,100 1,500 1,500 Reimbursement from Farmer program.

355300-00 Bridge Maintenance Reserve (4,000) (4,000) (4,000) (4,000) City Parking agreement - maintain skybridge (code 211560-00).

350170-00 City Share of Revenues (236,526) (247,074) (246,460) (246,460) Contract with City: 35% - 45% of revenue reimbursed to City.

TOTAL SURFACE PARKING

REVENUE363,371 363,330 378,817 378,817 SURFACE PARKING REVENUE

Page 6





GARAGE REVENUE

345100-00 Garage Revenue - DAILY 1,761,000 1,826,092 1,850,000 Slight increase in daily revenue due to decrease in on-street parking and

city parking promotion.

345100-05 Garage Parking Validation 39,000 57,813 30,000 Seeing decrease in validation purchases.

345100-07 Garage Revenue - MONTHLY 244,000 256,595 250,000 Slight increase in monthly passes, however no new monthly passes will be

sold.

499033-00 Sales Tax - Garage (160,518) (166,481) (168,350) 9.5% sales tax

499033-04 Commercial Parking Tax (212,094) (219,054) (221,513) 12.5% tax

Total Parking Garage - net of taxes 1,754,965 1,740,137

345100-08 Parking Pass Reimbursement 8,800 4,808 6,000 Inter-department reimbursement for parking passes.

346010-00 Farmer Program Reimbursement 3,200 2,835 3,200 Reimbursement from Farmer program.

Total Parking Reimbursement 7,643 9,200

345200-00 Garage Base Rent - Office 48,237 48,077 36,904 Two commercial tenant s. Possible vacancy during portion of year.

345300-01 Garage - Coma% 3,430 3,432 3,430 Food Bank charges.

345500-00 Garage - Direct Pest Control 690 657 700 Food Bank charges.

345600-00 Garage Late Fees - Rent - - Late rent fee.

345700-00 Garage Late Fees - Sales Report - -

Total Commercial Rent 52,166 41,034

345800-00 Garage - Investment Income 1,261 855 1,000 LGIP- PC-1 CRRF, and TB on Bond Reserves.

345900-00 Garage - Interest Income 5 - - Interest earned on garage revenue account.

Total Investment & Interest Income 855 1,000

TOTAL GARAGE REVENUE 1,737,011 1,815,629 1,791,371 1,791,371 GARAGE REVENUE

Page 7





MARKET FOUNDATION REVENUE

357200-00 Market Fresh Coupon Contribution 20,000 22,000 20,000 Distributed to low income shoppers redeemable at farm tables.

Based on Market Foundation's determined allocation.

Total Contribution - Food Programs 20,000

TOTAL MARKET FOUNDATION

REVENUE20,000 22,000 20,000 20,000 MARKET FOUNDATION REVENUE

Page 8





MISCELLANEOUS REVENUE

384800-00 Security Service Contracts 38,460 38,675 40,795 Security contract service for non-PDA tenants (The Champion Bldg,Inn At

the Market, Sur La Table-Corporate, South Arcadia). 5.48 % Increase

384800-01 SPD Security Contracts 12,960 11,805 11,640 SPD contract service for non-PDA Tenants(the ones above plus few more).

Total Security Service Contracts 52,435

386100-00Management Fee from Las Senior

Housing LLC74,000 75,533 76,220

9% of LLC revenue based on Agreements;plus $20K(indexed 3% per

year) Company Management Fee per LasLLC agreement.

386200-04Management Fee from PPM Funding

LLC22,657 22,657 - Management Fee from PPM Funding LLC (NMTC) ends 2012.

Total Management Fee 76,220

386200-00 Investment Inc - PDA Ops 4,800 4,181 4,800 Investment income on general operating and PDA Bond Reserves.

386200-01 Investment Inc - PDA CRRF 25,000 22,005 23,000 Investment income on Capital Reserve held in LGIP.

386400-00 Interest Income - PDA Ops 220 199 200 Interest income on Residential security deposit, Sanitary Reserve.

386400-03 Interest - LIHS 481 406 400 Interest income on Low Income Housing reserve.

Total Investment / Interest Income 28,400

387300-00 Constituency Revenue 500 308 400 400 Constituency annual dues. Based on prior years' average.

389100-00 Misc Revenue - Non-taxable 32,000 30,584 32,000 32,000 COBRA Admin fee, and Chase Bank reimbursements based on actuals.

Unexpected misc income coded here, though not budgeted.

389610-00 Keys and Access Card Revenue 2,100 2,380 2,500 2,500 Fee for replacement of lost keys, cards, fobs. Based on 2012 actuals.

488389-00 Sales Tax - Key & Access Cards (182) (1,594) (216) (216) 9.5% Sales Tax.

389600-00 Filming/License Revenue 13,750 22,211 22,000 22,000 Anticipated filming and site fees (an estimate based on past few years). We

are accomodating more requests and working with the Seattle Film Office.

389620-00 Trademark / Royalties Revenue 68,000 68,552 75,000 75,000 Current agreements call for royalty payments in 2013 of $70,500; a

percentage fee paid from agreement with Sasquatch Books. Other income

from new agreements that include the use of PDA trademark.

TOTAL MISC REVENUE 294,746 297,902 288,739 288,739 MISCELLANEOUS REVENUE

TOTAL REVENUES 14,374,660 14,500,745 15,179,094 15,179,094

Page 9





COMMERCIAL EXPENSES PROPERTY MANAGEMENT

484501-00 Salaries - Commercial 242,881 243,159 252,597 4 FTE

484502-00 Payroll Taxes 24,290 24,903 25,262

484502-01 Benefits 29,613 28,984 27,386

Total Payroll Expenses - Commercial 305,245

484503-03 Garage Parking Expense - 600 600 Chaser Tickets for Garage to use for Express Credit Union Employee plus

miscellaneous.

New Wifi Services - Express Credit Union 660 660 Monthly Fee for wifi connection in LaSalle building - Express Credit

Union Use. Based on $55 per month fee. (Should this be added to the IT

budget or stay here?)

484531-00 Metro & MID Fees 7,700 8,368 8,500 8,500 Annual Dues - MID, LID; 67% Commercial; 33% Garage. Based on

Metro & MID Fees paid 2012.

484532-00 Taxes - Property 5,700 6,976 7,200 7,200 Based on taxes paid in 2012 ($7,000) plus 3% increase.

484533-00 Taxes - B&O 4,042 4,082 3,500 3,500 Service & Retail B&O - Rummage, Service Chrg, Security Contracts,

Filming, Consulting. Based on annualized Actuals for 2012.

484537-00 Bad Debt - Commercial 30,000 25,844 15,000 15,000 Uncollectible non-payment of tenant A/R. Anticipate more than 2011

budget ($10K), but less than 2012 actuals ($26K thru July).

484542-02 Tenant Consulting & Recruitment 40,000 17,870 18,000 18,000 Tenant Consulting, Recruitment including PDA MHC Application Fees

484543-02 Legal Expense 5,000 6,604 5,000 5,000 Tenant issues; material lease changes; compliance.

484545-00 Advertising - Vacancies 1,000 70 1,000 1,000 Use of internet and other sources for advertising vacancies

484546-00 Highstall Coupons Redemption 15,000 15,401 15,000 15,000 Coupons for low-income shoppers redeemable at highstalls.

484547-00 Supplies 500 2,687 500 500 Miscellaneous property management supplies

484549-00 Periodicals / Dues 1,000 841 1,250 1,250 ULI, IREM, Periodicals.

484550-00 Tenant Claims 2,000 2,697 2,000 2,000 Tenant product damage.

484553-00 Signs - Repair & Replacement 10,000 11,363 5,000 5,000 Wayfinding and directional signage - Misc demolition

TOTAL COMMERCIAL EXPENSE 418,726 399,849 388,455 388,455 COMMERCIAL EXPENSES

Page 10





RESIDENTIAL EXPENSES PROPERTY MANAGEMENT

485001-00 Salaries - Residential 342,545 358,935 354,730 8 FTE

485001-01 Overtime 1,000 2,248 2,000

485002-00 Payroll Taxes 38,394 38,491 35,455

485002-01 Benefits 59,222 56,337 57,363

Total Payroll Expenses - Residential 449,548

485003-03 Garage Parking Expense 300 15 150 150 CMS, Auditors, HUD, Consultants, inspectors & housing industry visitors

485010-00 R&M - Misc. Contracts 32,125 27,590 32,000 32,000 Outside contractor - carpet cleaning 4x/yr & common area painting, mold

assessment, biohazard clean-up. Bed bug clean-up ($875.00X15); ADD:

Vinyl floor cleaning; Bed bug chemicals

485011-01 Cable TV 4,200 6,755 4,200 4,200 For 5 on-site staff

485019-01 Building Internet Access 3,360 1,460 2,600 2,600 Tenant internet access: LB,Market House & Stewart Hosue

485029-01 Reimbursement - LAS LLC (51,056) (59,562) (57,538) (57,538) Payroll expense reimbursement:1Mng @75% and 1 Asst. Mgr @ 50%.

485033-00 Taxes - B&O 461 442 461 461 Service & Retail B&O - Service Chg, Laundry.

485033-01 Taxes - Property 3,200 2,662 3,200 3,200 Property tax for Residential.

485037-00 Bad Debt - Residential 5,000 7,389 5,000 5,000 Uncollectible rents due to evictions, deaths

485041-00 Credit Reference - Residential 2,400 3,398 2,000 2,000 Credit references for potential new tenants. Actuals vary.

485044-00Tenants Retention/Relation

Expense/Social Services4,000 1,900 4,000 4,000

Tenants Appreciation/Meeting/ Get-together (Summer & Holiday) and

Event Decorations; $10/unit/year; Social Services

485042-00 Consulting 6,000 6,244 5,000 5,000 HUD issues, submittals & compliance review, REAC in-house training -

due to increased HUD requirements. Sheila King will be retained for

consulting: RHA, IREM, Spectrum, WMFHA, WSHFC, NCHM,

485043-00 Legal Expense 3,000 360 3,000 3,000 Residential issues. Actuals vary. Fees increased per L/T and Pucket &

Redford services back-up added cost due to evictions other for non pym't

of rent.

485045-00 Advertising - Vacancies 1,500 223 1,500 1,500 Advertising and tenant eligibility verification for apartment vacancies.

485048-00 Uniforms 4,000 3,640 5,000 5,000 Uniform for 7 employees plus summer clothes

485047-00 Supplies - R & M 5,200 5,258 5,200 Supplies for in-house work on Residential units, community rooms and

other needs.

485047-01 Supplies - Misc 2,000 641 2,500 Miscellaneous expenses for Residential: laudry.

Total Supplies 7,700

485049-00 Periodicals/Dues 1,000 912 1,000 1,000 AHMA (Affordable Housing Mgr) dues based on $2 per unit and $250

annual membership for 3 HUD buildings; RHA, IREM, WMFHA; WSHFC,

NCHM, NAHMA

TOTAL RESIDENTIAL EXPENSE 467,851 465,338 468,821 468,821 RESIDENTIAL EXPENSES

Page 11





DAYSTALL EXPENSES PROPERTY MANAGEMENT

485501-00 Salaries - Daystall 97,131 110,992 135,898 3 FTE

485501-01 Overtime -

485502-00 Payroll Taxes 12,627 14,697 16,307

485502-01 Benefits 14,807 14,330 20,539

Total Payroll Expenses - Daystall 172,744

485503-03 Garage Parking Expense 400 221 400 400 $5 value: bell ringers, inspections, craft recruitment, screening committee,

volunteers. We are required by Daystall Rules & Regs to have 5

community screeners @ our screenings.

485530-00 Screening Inspections - Staff 500 316 500 500 Travel expenses for current and new permit holder screenings.

485533-00 Taxes - B&O 19,996 21,194 21,476 21,476 State & City B&O tax - craft & farmer revenue, permits, North Arcade

Lights event.

485537-00 Bad Debt - Daystall 1,000 1,873 1,000 1,000 Uncollectible non-payment of tenant A/R.

485543-00 Legal Expense 2,500 - 2,000 2,000 Potential litigious Daystall (craft, performer) issues that would require

legal advise.

485545-00 Craft Recruitment & Retention 1,800 996 1,800 1,800

Supplies for retaining craft tenants, business development workshops. Two

workshops in the off season. Recruitment supplies. Contributing to the

Daystall breakfast. Produce a recruitment pamphlet. Tenant holiday

greeting cards.

485550-00 North Arcade Lights 50,000 45,712 50,000 50,000 Based on April's event.

485546-00 Daystall events 2,000 - 2,000 2,000 V-Day card making tent, Buskers Fest, And an undetermined craft event.

485547-00 Holiday buttons and stickers 1,000 - 1,000 1,000 Promotional materials for craftspeople during holiday

485551-00 Daystall Program Materials 100 86 100 100 Incidentals we can't order through the front desk or need right away, like

chalk/spray paint/MM pads.

TOTAL DAYSTALL EXPENSE 203,861 210,417 253,020 253,020 DAYSTALL EXPENSES

Page 12





SURFACE PARKING - Blanchard, Desimone & Lenora PARKING

442011-02 Contract Management Fees 114,033 106,919 118,000 118,000 Based on 2012 actuals, 18.8% of net revenue-Republic Parking

Mangement fee for surface lots.

442032-01 Taxes - Property 1,400 1,491 1,500 1,500 Based on 2012 actuals.

TOTAL SURFACE PARKING

EXPENSE115,433 108,410 119,500 119,500 SURFACE PARKING EXPENSES

Page 13





GARAGE EXPENSES PARKING

499001-00 Salaries - Garage 88,788 91,160 92,197 3 FTE

499001-01 Overtime 1,500 2,986 3,000

499002-00 Payroll Taxes 11,737 11,205 12,181

499002-01 Benefits 18,827 20,082 20,530

Total Payroll Expenses - Garage 127,908

499010-01 R&M - Cleaning 3,000 2,610 4,000 Vacuum truck monthly, annual scubbing.

499010-02 R&M - Equipment Repair 5,000 25,055 10,000 Based on 2011-12 actuals.

499010-06 R&M - Painting 6,000 - 6,000 We will need to re-paint all stall #s, lines, directional arrows,etc.

499010-20 R&M - Elevator Repair 5,000 7,896 5,000 Repairs which not covered under contracts (Maint takes care of this).

Total Misc Contract Services 25,000

499011-02 Contract - Elevator 20,000 20,416 20,000 Based on the actuals of 2012.

499011-06 Contract - Landscape Maintenance 5,000 2,852 5,000 Landscaping north slope and south greenbelt.

Total Annual Contract Services 25,000

499047-02 Contract - Uniforms 3,500 2,346 3,500 3,500 Staff Uniforms per Union contract - 3 staff.

499051-00 Miscellaneous Expenses 2,000 626 3,000 3,000 add'l radio, tools & supplies.

499015-00 Electricity 43,500 43,905 49,000 49,000 Based on the actuals of 2012. 3.3% estimated rate increase.

499016-00 Garbage 5,000 6,383 8,000 8,000 Based on the actuals of 2012. Increased service required.

499019-00 Telephone 4,000 2,769 3,700 3,700 Based on the actuals of 2012.

499021-00 Permits & Inspections 1,200 - 1,200 1,200 Permit for pedestrian skybridge and elevator inspections.

499022-00 Business License 6,075 546 1,000 1,000 Based on the actuals of 2012.

499023-00 Metro & MID Fees 3,500 3,586 3,800 3,800 Annual dues-MID, LID: 67% Commercial and 33% Garage. Based on the

actuals of 2012.

Garage - continue >

Page 14





GARAGE EXPENSES (continued) PROPERTY MANAGEMENT

499029-01 Facilities Services 29,000 29,000 38,000 Garage facilities reimbursement.

499029-02 Maintenance Services 11,000 11,000 11,500 Garage maintenance reimbursement.

499029-03 Security Services 94,000 94,000 85,000 Garage security reimbursement.

499029-04 Management Services 68,000 68,000 68,000 Garage management reimbursement.

499029-05 Finance Services 48,000 48,000 50,000 Garage accounting reimbursement.

499029-07 Information Systems Services 9,000 9,000 12,000 Garage IT reimbursement.

499029-06 Administrative Services 52,000 52,000 50,000 Garage administrative reimbursement.

Total Reimbursements 314,500

499031-00 Taxes - B&O 12,433 13,305 13,457 13,457 Retail & Service B&O tax - Daily, Monthly, validation. Based on 2011-12

actuals

499034-00 Insurance 54,760 46,417 52,390 Insurance premium - 5% increase after 5/1/2013.

499034-01 Insurance Claims 500 - 500 Insurance deductibles and claims not covered for parkers.

Total Insurance 52,890

499045-00 Advertising - - -

499047-00 Supplies - Misc 2,500 690 2,500 Sign mounting adhesives, padlocks, cones, etc.

499047-01 Supplies - Tickets 10,000 - 6,000 Supplies for the automated system. Tickets (both entrance and

promotional chaser tickets), credit card rolls, ribbon, etc. Supplies

purchased in 2011 carried through 2012.


499070-00 Bank Service Charges 1,000 780 1,000 Bank of America service fees. Fees are higher from the prior years.

499049-00 Credit Card Expense 54,000 60,000 66,000 Service fees on credit card transactions. Anticipate a higher usage of

credit card based on 2011-12actuals.

Total Bank Service Charges 67,000

499053-00 Signs - - 1,000 1,000 Sign replacement at Western Ave and Alaskan Way entries.

499082-00 PC1 Condo Dues 25,000 28,862 31,000 31,000 Yearly dues for PC1 South Condo.

TOTAL GARAGE EXPENSES 704,820 705,477 739,455 739,455 GARAGE EXPENSES

Page 15





FACILITIES EXPENSES OPERATIONS

480501-00 Salaries - Facilities 951,443 982,081 997,695 26 FTE. Night Operations Mgr. budgeted under Facilities.

480501-01 Overtime 20,000 18,910 24,000 Based on prior years' actuals and staffing for events.

480501-02 Special Events Reimbursement - No contracted events for Facilities: extra work for events handled with OT

480502-00 Payroll Taxes 136,002 137,611 143,037

480502-01 Benefits 192,472 182,115 184,753

Total Payroll Expense-Facilities 1,349,485

480510-00 R&M - Miscellaneous 2,000 3,693 2,000 R&M by outside contractors not on annual contract; contracted flood

cleaning, carpet cleaning, etc.

480510-01 R&M - Compactor/Lift arm/Baler 2,000 2,241 2,500 R & M for baler, tote lifts, lift arm & compactor. Based on 2012 actuals.

480510-02 R&M - Cleaning Equipment/Repair 5,500 2,579 5,550 Equipment for both Residential and Facilities replacement parts and

repairs.

Total Repairs & Maintenance 10,050

480511-01 Contract - Windows 33,000 37,322 37,300 Back to regular contract schedule with the end of Phase 2 and Phase 3

renovation.

480511-03 Contract - Uniform Rental 13,000 12,729 14,000 Based on 2012 actuals.

480511-04 Contract - Deodorizing System 2,500 2,423 2,500 Main Chute & Sanitary Dumpster room deodorizing system.


480529-00 Reimbursements - PC-1 Condo (2,400) (2,400) (2,600) Reimbursement for facilities time in PC1 South Condo.

480529-01 Reimbursement - Garage (29,000) (29,000) (38,000) Reimbursement for facilities time in Garage.

480529-02 Reimbursement - LaSalle LLC (19,000) (19,000) (20,000) Reimbursement for facilities time in LaSalle residential.

Total Reimbursements (60,600)

480547-00 Supplies - Misc 2,000 1,900 3,100 Locks, cones, supplies storage materials. Add monthly service for

COMECOAtrium entry mats & north Fairley ramp for 2013 (maybe best

added as new contact for $1100).

480547-01 Supplies - Cleaning 72,000 66,719 74,000 Based on 2012 actuals and increased use of bags associated with

increased recycling.

480547-02 Supplies - Paper / Dispensers 68,000 60,862 68,000 Based on 2012 actuals.

480547-03 Supplies - Garbage/Recycling 4,500 4,481 4,500 Garbage cans, lids, recycling receptacles,and replacement wheels.

Recycling signage.

480547-04 Supplies - Landscaping 18,000 17,534 22,000 Annual plantings, landscape supplies. Add landscape cleanup of

Desimone Lot and Soames Dunn Courtyard and hanging baskets for

Hillclimb.

480547-05 Supplies - Uniforms 1,000 - 3,400 Rain gear & boots required by union contract.

480547-06 Supplies - Lighting 19,000 13,165 15,500 Based on 2012 actuals.

480547-07 Supplies - Safety 7,000 5,569 7,000 Protective Equipment for toxic situations: disposable gloves, Tyvek suits ,

safety glasses & dust masks for all Operations and Residential staff.

480547-08 Supplies - Market decorations 7,900 18,285 10,000 Holiday Market decorations. Replacing old items. Based on previous

year actuals and added cost of LED lighting.


480548-00 Small Tools & Equipment 3,000 3,769 4,000 4,000 In-house R&M on equipment & facilities. One vacuum for Facilities & 2

vacuums, hand truck, & upright scrubber for Residential.

TOTAL FACILITIES EXPENSE 1,509,917 1,523,588 1,564,235 1,564,235 FACILITIES EXPENSES

Page 16





SECURITY EXPENSES OPERATIONS

481501-00 Salaries - Security 732,538 761,437 775,901 20 FTE

481501-01 Overtime 35,110 27,453 30,000 Increase overtime to address vacation,injury,staffing shortage,and

renovation needs.

481501-02 Special Events Reimbursement 4,000 7,708 4,000 Based on the 2012 actuals.

481502-00 Payroll Taxes 108,909 111,385 114,296

481502-01 Benefits 146,203 134,655 136,915

Total Payroll Expenses-Security 1,061,112

481501-10/11SPD Services - Night & Day 74,880 76,260 75,000

481502-11 Payroll Taxes - SPD 7,488 7,987 7,500

Total SPD Services Payroll 82,500

481510-04 R&M - Radio Repairs 2,500 2,770 2,500 Purchased more durable radios. Reduces repair expense.

Total Misc R&M Contract Services 2,500

481511-01 Contract - Laundry 5,500 3,590 No longer used.

481511-02 Contract - Brinks 4,000 3,699 4,000 No expected increase in rate from Brinks.


481529-01 Reimbursement - Garage (94,000) (94,000) (85,000) Reimbursement for security time in Garage.

481529-02 Reimbursement - PC1 Condo (10,000) (10,000) (10,000) Reimbursement for security time in PC1 South Condo.

481529-03 Reimbursement - LaSalle LLC (12,500) (12,500) (12,500) Reimbursement for security time in LaSalle LLC.

481529-04 Reimbursement - Levy (5,110) (2,301) No longer used.

Total Reimbursement (107,500)

481547-00 Supplies - Misc 3,000 601 3,000 Includes replacing damaged/lost materials, annual

renewal of warranties, radio license and items of that nature.

481547-01 Supplies - Uniform 14,000 14,237 15,000 No expected increase in rates from Cintas.

481547-03 Supplies - Bicycles 500 258 200 Bike program/ tune ups,bike gear.

481547-04 Supplies - Radio 3,000 1,617 3,000 Replacing clips, batteries, antennas, ear pieces, and other items

pertaining to radios.

481547-05 Supplies - Street Control 2,200 424 2,200 Cones, signs, caution tape, that are used yr round for events, emergencies.

There isn't a secured storage fac.so replacing lost, stolen, and damaged

items is frecquent.


481548-00 Small Tools & Equipment 1,800 2,742 1,800 1,800 Includes replacing lost, worn, damaged gear for individual officers.

TOTAL SECURITY EXPENSE 1,024,018 1,038,022 1,067,812 1,067,812 SECURITY EXPENSES

Page 17





MAINTENANCE EXPENSES OPERATIONS

481001-00 Salaries - Maintenance 527,172 537,653 583,629 10 FTE

481001-01 Overtime 10,000 9,442 10,000

481001-02 Special Events Reimbursement 1,000 - 1,000

481002-00 Payroll Taxes 69,962 68,002 77,342

481002-01 Benefits 74,028 68,401 74,436

Total Payroll Expenses-Maintenance 746,407

481010-00 R&M Contract - Misc. 1,000 1,559 1,000 R&M by outside contractors not on annual contract. Maintain in budget

for off normal events.

481010-01 R&M Contract - Electrical 5,000 3,197 4,000 Emergency and planned repairs by outside contractors. Decrease reflects

annualized actuals.

481010-02 R&M - Plumbing 15,000 2,569 8,000 Emergency Snake/jetting etc. Pipe replacement. Decrease reflects

annualized actuals.

481010-03 R&M - HVAC 14,000 12,811 14,000 Repairs to exhaust fans, hoods, and aging HVACS.

481010-04 R&M - Roofing 5,000 908 2,000 Flashing, gutters, metal fascia, downspouts, leak repairs, etc.

481010-05 R&M - Welding 500 - 500 Emergency repairs.

481010-06 R&M - Windows 5,000 1,752 3,200 Replacement due to damage & vandalism.

481010-08 R&M - Doors / Locks 8,000 6,883 8,000 Doors throughout market, repairs to roll-ups, Metal and wood doors,

hinges, and associated hardware. Expecting increase of repairs.

481010-12 R&M - Fire & Life Safety 15,000 22,500 21,000 Annual fire alarm & panel tests, sprinkler testing, and repairs to aging

systems. Increase reflects annualized actuals

481010-20 R&M - Elevator Repair 9,000 9,200 9,000 Off-Normal emergencies not covered by contract.

481010-23 R&M - Flooring 2,000 - 2,000 Various floor replacements, repairs, refinishing.

Total R&M Contract Services 72,700

481011-03 Contract - HVAC 21,300 20,000 20,000 Coolers, chiller, cooling tower, water treatment, & air handler

maintenance. Decrease reflects annualized actuals

481011-12 Contract - Fire & Life Safety 8,000 3,121 7,000 Monitoring fire panels. Combined Fire Panels so have less accounts.

481011-13 Contract - Uniform 8,000 8,960 8,000

481011-20 Contract - Elevator 45,000 34,962 40,000 All buildings(garage excl): Decrease reflects annualized actuals.


Maintenance - continue >

Page 18





MAINTENANCE EXPENSES (continued) OPERATIONS

481029-01 Reimbursement - Garage (11,000) (11,000) (11,500) Reimbursement for maintenance time in the Garage.

481029-02 Reimbursement - LASLLC (15,200) (15,200) (16,000) Reimbursement for maintenance time in the LaSalle residential.

481029-03 Reimbursement-Levy (5,000) - - No longer used.

Total Reimbursement (27,500)

481047-00 R&M Supplies - Misc 6,000 3,804 5,000 Supplies for in-house R & M. Decrease reflects annualized actuals

481047-01 R&M Supplies - Electrical 11,000 8,126 10,000 Electrical parts & supplies. Decrease reflects annualized actuals.

481047-02 R&M Supplies - Plumbing 18,000 10,917 15,000 Plumbing supplies. Maintain budget for unexpected repairs to aging

plumbing. Decrease reflects annualized actuals.

481047-03 R&M Supplies - HVAC 7,500 4,913 7,500 Filters, water treatment, replacement motors, fan, etc.

481047-05 R&M Supplies - Welding 500 - 500 Gas, misc supplies, and metal.

481047-06 R&M Supplies - Windows 3,000 1,911 3,000 Hardware for glass & frame repairs, replace broken glass.

481047-07 R&M Supplies - Paint 10,000 11,092 11,000 Paint, and paint supplies. Increase reflects annualized actuals.

481047-08 R&M Supplies - Locks 5,000 6,518 5,000 Locks, key replacement & repairs. Increase reflects annualized actuals.

481047-11 R&M Supplies - Carpentry 2,600 593 2,500 Materials for in-house work. Lumber, trim, molding, etc.

481047-12 R&M Supplies - Fire & Life Safety 2,500 3,919 4,000 Fire detectors, alarm bells, etc. Increase reflects annualized actuals.

481047-13 R&M - Awnings 1,000 - 1,000 Repairs to awnings.

481047-18 R&M Supplies - Appliance Parts 1,500 2,134 1,500 Maintain budget for unexpected needs. Misc Parts.

481047-21 R&M Supplies - Masonry 500 500 Supplies for repairs for brick bldg.

481047-25 R&M Supplies - Signage 1,000 1,192 1,000 Common area sign expense (No Smoking; etc.), Sign-making material.

481047-30 R&M - Supplies - Keys 6,000 4,537 6,000 Key blanks, inventory for employee's and tenants.

481047-50 R&M - Commercial 5,000 5,673 5,000 Repairs in commercial tenant space. Offsets tenant revenue 313100-00.


481048-00 Small Tools & Equipment 2,500 1,991 2,000 2,000 Miscellaneous job-related tools.

481050-00 Truck - Gas & Oil 1,000 962 1,000 Additional vehicle.

481050-01 Truck - Repair & Maint 1,000 2,404 3,000 Now have 3 trucks. Maintain budget for unexpected needs. Increase

reflects annualized actuals.

Total Truck Expense 4,000

TOTAL MAINTENANCE EXPENSE 898,362 856,406 951,107 951,107 MAINTENANCE EXPENSES

Page 19





CAPITAL & DEVELOPMENT EXPENSES OPERATIONS

482501-00 Salary - Capital Budget 132,615 133,408 183,104 2 FTE+ Joe Paar(% allocation between Renovation and Capital Projects)

482502-00 Payroll Taxes 13,261 14,923 18,310

482502-01 Benefits 14,807 14,601 22,714

Total Payroll Expense-Capital 224,128

TOTAL CAPITAL MANAGEMENT

EXPENSE160,683 162,932 224,128 224,128 CAPITAL & DEVELOPMENT EXP

Page 20





RENOVATION EXPENSES OPERATIONS

482503-00 Salary - Renovation 132,615 118,452 33,031 2 FTE(%allocation between Renovation and other departments)

482504-00 Payroll Taxes 13,261 11,100 3,301

482504-01 Benefits 14,807 11,353 6,411

482502-02 Reimbursement (160,683) (140,905) (42,743)

Total Payroll Expense-Renovation -

TOTAL RENOVTION EXPENSE - - - - RENOVATION EXP

Page 21





UTILITY EXPENSES UTILITIES

486013-00 Electricity 587,000 617,829 607,500 607,500 Based on 2012 actuals & estimated 3.3% rate increase.

486015-00 Water/Sewer 613,000 595,731 610,000 610,000 Based on 2012 actuals CCF totals & estimated 3.8% rate increase.

486016-00 Garbage - Dumpsters 420,000 441,494 410,000 410,000 Based on 2012 actuals and decreased tonnage from melting ice &

increased mixed recycling.

486017-00 Recycling - Mixed Paper/Plastics 83,879 75,949 100,000 Based on increased mixed recycling with additional receptacles requested

by the City for Pike Place and likely change of vendors.

486017-02 Recycling - Green 50,000 40,138 50,000 Food waste recycling volumes expected to remain constant.

486017-03 Recycling - Misc (12,000) (21,717) (18,000) Fluorescent lighting, electronics & appliance recycling off set by rebates

from cardboard & biodiesel recycling. Based on 2012 actuals.

Total Recycling 132,000

486017-05 Gas - Commercial 35,000 34,138 35,000 35,000 Based on 2012 actuals.

486018-00 Pest Control 127,500 108,677 120,500 120,500 Market wide pest control. Service levels required for bedbugs decreased

for Residential.

486020-00 Permits 13,700 13,545 13,000 13,000 Basesed on 2012 actuals.

TOTAL UTILITY EXPENSE 1,918,079 1,905,784 1,928,000 1,928,000 UTILITY EXPENSES

Page 22





INSURANCE EXPENSES OPERATIONS

486210-00 Insurance 451,000 396,637 431,297 431,297 5% increase at the renewal time, 5/1/2013.

486220-00 Insurance Claims 5,000 4,582 5,000 5,000 Insurance deductibles and claims not covered.

TOTAL INSURANCE EXPENSE 456,000 401,219 436,297 436,297 INSURANCE EXPENSES

Page 23





MANAGEMENT EXPENSES ADMINISTRATION

483001-00 Salaries - Management 594,209 586,803 613,778 5 FTE+Tamra(% allocation between Renovation and Management)

483002-00 Payroll Taxes 59,421 58,397 61,378

483002-01 Benefits 42,551 42,518 64,366

Total Payroll Expenses-Management 739,522

483003-03 Garage Parking Expense 200 130 200 200

483029-00 Reimbursements - Garage (68,000) (68,000) (68,000) (68,000) Reimbursement for management time on Garage.

483042-00 Consulting 100,000 56,975 50,000 50,000 Strategic Planning,Financial, Capital Renovation, Water Front Study.

483043-00 Legal 50,000 51,042 50,000 50,000 Legal issues, contracting policies, public info, etc.

483049-00 Periodicals/Dues 1,500 1,258 1,500 1,500 PSBJ, Economic Advisor.

483051-00 Miscellaneous 2,500 1,905 2,500 2,500 DSA Annual Meeting, hosting guests and conferences.

483080-00 Council Expenses 4,000 3,083 4,000 4,000 Retreat, receptions, council parking for committee meetings.

TOTAL MANAGEMENT EXPENSE 786,381 734,111 779,722 779,722 MANAGEMENT EXPENSES

Page 24





FINANCE EXPENSES ADMINISTRATION

483501-00 Salaries - Finance 239,208 241,344 248,670 5 FTE(adding Cashier to Accounting, and removing him from Admin)

483501-01 Overtime - 1,075 1,000

483502-00 Payroll Taxes 23,920 25,723 24,867

483502-01 Benefits 37,011 35,677 37,610

Total Payroll Expenses-Finance 312,147

483503-03 Garage Parking Expense 25 - 25 25 Garage parking coupons-$5 value.

483529-00 Reimbursements - Garage (48,000) (48,000) (50,000) (50,000) Reimbursement from Garage for Accounting services (Financials, A/P).

483541-00 Audit Expense 47,000 46,258 47,000 47,000 Independent & State audit expenses-(Ind. Audit PDA $27K; REAC

Submission $3K;State Audit $17K).

483542-00 Consulting 10,000 10,000 5,000 5,000 Finance-accounting related issues.

483548-00 Bank Service Charges 3,500 4,970 3,300 3,300 Bank of America bank service fee ($750/quarter) & supplies $500.

483549-00 Periodicals and Dues 600 449 400 400 CFO and Controller Alert & Business Journal.

TOTAL FINANCE EXPENSE 313,264 317,496 317,872 317,872 FINANCE EXPENSES

Page 25





OFFICE ADMINISTRATION EXPENSES ADMINISTRATION

484001-00 Salaries - Office Administration 221,300 220,179 276,061 5 FTE

484001-01 Overtime 1,700 421 1,700

484002-00 Payroll Taxes 22,300 22,289 27,776

484002-01 Benefits 29,608 27,016 34,230

Total Payroll Expenses - Office Admin 339,767

484010-00 R&M - Office Equipment 1,200 - 1,200 1,200 Annual maintenance for fax & lease of water filter machine.

484011-00 Contract - Office Equipment 24,000 33,117 24,000 24,000 Postage meter, copier contracts.

484012-00 Delivery Services 1,500 867 1,500 1,500 Misc deliveries: UPS, Bucky, FedEx, Airborne.

484019-00 Telephone - Basic Service 24,000 20,422 24,000 Main phone, fax, emergency lines; alarms.

484019-01 Telephone - Cell 10,000 11,591 13,000 Cell phones.

484019-02 Telephone - Long Distance 1,100 875 1,100

Total Telephone 38,100

484029-00 Reimbursements - Garage (52,000) (52,000) (50,000) (50,000) Reimbursement from Garage for Admin services (payroll, HR issues).

484046-00 Office Operations 10,000 9,181 10,000 10,000 Coffee, water, staff mtg, kitchen supplies.

484047-00 Supplies - General Office 27,000 30,807 27,000

484047-01 Supplies - Printer 7,000 5,211 7,000 Toner, drums for color and main printer. Based on 2012 actuals.

484047-02 Supplies - First Aid 4,000 4,600 4,000 Based on 2012 actuals.

484047-03 Supplies - Special Projects 500 500 1,000 Budget and special projects.


484050-00 Community Employee Relations 2,000 815 2,000 2,000 Cards (get well, sympathy); holiday, staff teams.

484051-00 Miscellaneous 250 263 250 250

484054-00 Postage 23,000 22,979 25,000 25,000

484055-00 Constituency 7,000 4,482 7,000 7,000

TOTAL OFFICE ADMIN EXPENSE 365,458 363,615 437,817 437,817 OFFICE ADMINISTRATION EXP

Page 26





HUMAN RESOURCES EXPENSES ADMINISTRATION

484204-00 Staff Training and Seminars 25,000 23,397 35,000 Staff training and seminars, CPR certification.

484205-00 Temporary Personnel 3,000 800 3,000 Temporary personnel.

484207-00 Safety Committee 1,000 - 1,000 Safety program supplies and tools.

484220-00 Employee Recognition 9,000 13,821 12,000 Staff appreciation days, holiday events, etc.

Total Staff Development & Training 51,000

484220-01 Flex Plan Service Fee 2,500 590 2,500 Service fee.

484220-02 Pension Plan Service Fee 8,500 8,437 8,500 TD AMERITRADE service fees.

484220-03 Legal Benefit Admin Fee - - -

Total Service Fees - Employee Benefits 11,000

484211-00 Contract - Payroll Service 35,000 34,385 35,000 35,000 ADP payroll fee and monthly payroll cost.

484212-00 Transit Subsidy 28,000 24,000 28,000 28,000 PDA pays $40 towards employee bus & ferry pass.

484242-00 Consulting 7,000 6,907 7,000 7,000 General employee consultation with Washington Employees.

484243-00 Legal 20,000 19,875 20,000 20,000 HR issues.

484245-00 New Hire Expense 3,000 3,189 3,000 3,000 Employment ads; new hires; background checks.

484249-00 Periodicals/Dues 500 186 500 500 HR Legal Bulletins; salary surveys; SHRM membership.

TOTAL HUMAN RESOURCES

EXPENSE142,500 135,587 155,500 155,500 HUMAN RESOURCES EXPENSES

Page 27





INFORMATION SYSTEMS ADMINISTRATION

482001-00 Salaries - Information Systems 124,800 125,561 129,791 2 FTE

482002-00 Payroll Taxes 13,728 12,800 14,277

482002-01 Benefits 14,807 14,523 19,670

Total Payroll Expenses-Info Systems 163,738

482010-00 R&M Contract - Misc 1,000 822 1,000 R&M for printer.

482010-01 R&M - Telephone Repairs 1,000 1,303 1,000 Telephone equipment & repairs. New phone system under warranty & half

of current phones replaced, should reduce replacements & repairs.

Total Repairs & Maintenance 2,000

482011-00 Contract Services - Annual 46,200 40,979 47,700 47,700

Yardi Voyager (upgraded Asset/Property Mgt. software): annual contract:

Property Management & General Ledger:

10 Designated Users @ $1,646.43 ea

11 Designated Users @ $1,568.03 ea

Affordable Module:

2 Users @ $548.81 ea

5 Users @ $522.68 ea

and taxes; plan to install Check Scanning and Credit Card Processing

through Yardi --1 additional License.

482011-01 Contract - Internet Service 9,600 9,523 8,100 8,100 Domain register/hosting; IP addresses. Isomedia Bonded T1& IT Manager

ISP -- After June '13 New/faster/cheaper ISP will be used, plus yearly SSL

Cert for Exchange Server.

482011-02 Reimbursement - Garage (9,000) (9,000) (12,000) (12,000) Reimbursement from Garage (increased hours in support of garage

automation system).

482012-00 Contract - Software Subscriptions 2,500 2,480 7,500 7,500 Yearly Software Subscriptions (non-Yardi) (Anti-Virus,/Anti-Spam, Active

Directory Connector, AudioLog, Patch Management software yearly

licenses) -- Untangle $1,500, Adobe $3,300, GFI $2,400 estimates.

482047-00 Supplies - Software 5,000 3,945 4,000 Software supplies.

482047-01 Supplies - Hardware 10,000 10,123 10,000 Server, PC, printer parts, hard drive, memory, keyboards, etc.

482047-02 Supplies - Uniforms 250 100 Uniforms for IT staff.


482049-00 Periodicals & Dues 1,000 411 1,000 1,000 Microsoft TechNet; newsletters, reference books.

TOTAL INFORMATION SYSTEMS

EXPENSE220,885 213,470 232,138 232,138 INFORMATION SYSTEMS EXPENSES

Page 28





MARKETING AND COMMUNICATIONS PROGRAMS

487001-00 Salaries - Marketing 185,432 158,010 197,931 3 FTE

487001-01 Overtime -

487002-00 Payroll Taxes 18,543 16,500 19,793

487002-01 Benefits 22,208 18,158 23,918

Total Payroll Expenses-Marketing 241,642

487043-00 Legal 15,000 6,122 5,000 5,000 Fees associated with legal advice as we are negotiating trademark

agreements. Line item reduced to reflect actual trending costs.

487049-00 Periodicals / Dues 250 805 250 250 Membership dues and periodical subscriptions related to marketing.

487060-00 Volunteers Appreciation 200 208 300 300 Appreciation lunch for volunteers as related to the school program.

487060-01 Volunteers Parking Expense 1,200 1,400 1,500 1,500 Garage parking chaser tickets provided to the school program volunteers

as required and other parking needs.

487065-00 Website Development 5,000 1,237 2,500 2,500 Hosting of our website and any possible web fixes, technical requests, or

other web-related issues. Increased in 2013 to accommodate updates to

user interface and development of a mobile-optimized site.

487070-00 Marketing, Agency Fee, and PR 149,000 123,867 125,000 125,000 Providing support for seasonal and institutional marketing campaigns.

487072-01 Co-Op Advertising 17,500 14,631 15,000 15,000 Tenant advertising reimbursement. Marketing advertises the availability

of funds in the Insider and on-line at pikeplacemarket.org. nearly every

single month of the year.

487075-00 School Program 12,500 2,371 12,500 12,500 Mileage, supplies and curriculum development. Includes development of

elements for online instructional support and updates to resource kits.

487080-00 PR - Public Info Materials 8,000 240 13,500 13,500 Brochure printing and distribution on ferries and at airport, through

Market Info Booth, and to convention groups. Anticipate redesign of

brochure and increased distribution in summer months.

487083-00 Sponsorship 9,000 9,893 10,000 10,000 Average sponsorship level $1,000 per organization, but actual expense

varies by event.

487085-00 Market Events and Promotions 65,000 48,490 30,000 30,000

Promotions and associated costs of those promotion that are not part of

an annual advertising campaign, such as Arcade Lights, Magic in the

Market, Flower Festival and Daffodil Day. Additional funds have been

allocated to purchase promotional materials - bags, etc. for merchant use.

Also, $594 CC machine fees and rentals (20% allocation).

487073-00 Farm Season Advertising 50,000 52,713 65,000 65,000

This line item is being moved to the Marketing budget from the Farm

budget to help accurately report the Marketing support to the Farm

Season. We may reuse banner and art from 2011 and change some of our

marketing.A dollars from traditional media to more guerilla marketing

efforts. Also, $890 CC machine fees and rentals(30% allocation).

487067-00 Mobile Application 30,000 - 5,000 5,000 Ongoing support and development of Microsoft-sponsored mobile app.

487095-00 Equipment - Marketing 1,000 365 1,000 1,000 Renting equipment (sound system, stages) for events or press conferences.

TOTAL MARKETING EXPENSE 589,833 455,010 528,192 528,192 MARKETING & COMMUNICATIONS

Page 29





FARM / FARMER'S MARKET EXPENSES PROGRAMS

437501-00 Salaries - Farm Program 133,796 138,064 86,585 2 FTE

437501-01 Overtime 1,000 498 500 Help needed in the case of illness, special events & projects.

437502-00 Payroll Taxes 18,871 18,085 11,276

437502-01 Benefits 22,209 20,503 13,693

Total Payroll Expenses-Farm Program 112,054

437504-00 Seasonal Labor 8,000 4,590 10,000 10,000 To hire seasonal help for remote markets & farm information booth, June

through Sept. Would like to expand remote markets to mid Oct.

437503-01 Travel Expense 250 202 250 250 Mileage reimbursement for out of area meetings.

437503-03 Garage Parking Expense 300 - 300 300 $5 value/staff needs car for inspection & supply pick up/WSFMA

meeting/Ag visitors.

437530-00 Farm Inspections - Contract 1,000 155 1,000 Used in the event of a complicated farm inspection.

437530-01 Farm Inspections - Staff 1,000 1,160 1,000 Inspection of new farms/periodic inspection of exsiting farms.

Total Inspections 2,000

437545-00 Farmer Recruitment 1,000 64 4,000 4,000 Recruitment materials.

437547-00 Supplies 2,000 443 1,500 1,500 Tables, sawhorses, bungees, chef demo supplies , T-shirts for staff.

437548-00 Bad Debt 1,000 - 1,000 1,000 Bad Debt - Uncollectible accounts.

437549-00 Dues/Permits 2,800 2,838 3,000 3,000 WSFMA/Tilth/Cascade Harvest Coilition/Health Dept/Fire permit/CapitaL

Press.

437545-02 Advertising-Farm related - - -

437551-00 Mkt Fresh Coupon - Printing 2,000 2,001 2,000 2,000 Printing of Market Fresh coupons for Highstall & Farm.

437551-02 Mkt Fresh Coupon - Redemption 12,500 17,034 17,500 17,500 Coupons for low-income shoppers redeemable at farm tables.

437551-03 Farmer Coupon Redemption 12,500 12,300 12,500 12,500 Summer coupons redeemable at street farm tables.

437553-01 Farmer Parking Program 5,000 3,935 4,500 4,500 Garage & Surface parking for farmers of fresh produce.

437554-00 Farmer Support Program 2,500 3,534 3,984 3,984 Display upgrades, translations, banners, Daystall Breakfast, also $1,484

CC machine fees and rentals(50% allocation).

437571-00 Farm Truck 1,000 257 1,500 1,500 Gas, maintenance & tabs, 2013 major tune-up.

437580-00 PR/Outreach 1,500 1,151 1,500 1,500 Flower Farmer promotions, wooden signs for farmers,info booth

materials.

Seed Program - 900 900 New Account: Seed Program (for diversity of produce).

SNAP/Debit 1,200 1,200 1,200 New Account: SNAP Market buck printing & signage.

437582-00 Farm focused events 2,800 1,160 5,000 5,000 V-day, Flower Fest+ other events.

437581-00 Remote Markets Direct Costs 3,000 2,058 2,000 2,000 Expenses related to remote markets/City Hall & SLU.

TOTAL FARM PROGRAM

EXPENSE236,026 231,232 186,688 186,688 FARM PROGRAM EXPENSES

Page 30





Economy Atrium Kitchen Events OPERATIONS

new acc Salary - 72,896 1 FTE

new acc Payroll Taxes - 7,289

new acc Benefits - 6,847

Total Payroll Expense-Renovation 87,032

new acc Farm Hub Market Research 20,000 20,000

TOTAL RENOVTION EXPENSE - 107,032 107,032 DEVELOPING BUSINESSES

Page 31





MARKET FOUNDATION EXPENSES PROGRAMS

457001-00 Salaries - Market Foundation 142,908 152,409 152,844 2 FTE (all of Lillian & all of Erika); 5% over reflects sharing the cost of 1

more staff; Devo assistant / volunteer coordinator to help with

campaign/Agency capacity building.

457002-00 Payroll Taxes 14,291 16,221 15,284

457002-01 Benefits 14,807 10,343 17,073

Total Payroll -Market Foundation 185,201

457002-05 Salaries - Market Foundation Staff 175,368 175,368 193,323 3 FTE. Processed and paid by PDA, reimbursed by Mrkt Foundation.

PR/Mktg FTE is at a new salary so these figures are guesses?

457002-05 Payroll Taxes 17,537 17,537 19,332

457002-05 Benefits 22,209 22,209 27,299

Staff Payroll Reimbursement (215,114) (215,114) (239,954) 3 FTE to be reimbursed by MF .

xxxxxxxx Volunteer Program - 10,000 10,000 Volunteer Program.

457006-00 Resident Advocate 68,075 67,644 83,075 83,075 $15K increase for 2013.

457047-00 Supplies 150 421 150 Deliveries, Office Supplies for PDA-related projects.

457004-00 Training 1,250 1,564 1,250 Fundraising training 2x/year. Computer training-$250 for 5 FTE's.

457003-03 Garage Parking Expense 1,600 3,840 1,600 Garage parking coupons-$5 value: Major donors, volunteers for

programs (Food Link), Staff driving for work projects.

457003-01 Travel Expense 50 - 50 Outside market parking; misc travel.

457049-00 Periodicals/Dues 2,500 2,063 2,500 NDOA, Rotary, Chamber, PSBJ.

457051-00 Misc. Expenses 510 159 1,140 - technology line - covering wi-fi ($35x12); PG cell phone ($60 x12).

Total Office Operations 6,690

457060-00 Special Projects 5,000 3,106 2,500 2,500 Adding capacity to Sr. / Clinic through staffingrather than through cash

sponsorship.

TOTAL MARKET FOUNDATION

EXPENSE251,141 257,770 287,466 287,466 MARKET FOUNDATION EXPENSES

TOTAL OPERATING EXPENSES 10,783,238 10,485,733 11,173,255 11,173,255

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TOTAL REVENUE 14,374,660 14,500,745 15,179,094 15,179,094

TOTAL EXPENSES 10,783,238 10,485,733 11,173,255 11,173,255

NET RESULTS 3,591,423 4,015,012 4,005,840 4,005,840

DEBT SERVICE

214115-00

489067-00Bond Payment - PDA 471,264 471,264 472,332 472,332 PDA 2009 Refunded Bond

110870-00

110890-00Bond Payment - Garage 873,995 873,995 886,065 886,065 GARAGE 2001 Refunding Bond Principle, Interest and Fees

214270-00

489069-00Bond Payment - Pine Residential 169,790 169,790 169,790 169,790 2005 Bond Principle and Interest.

214280-00

489070-00Loan Payment - Pine Commercial 256,100 256,100 256,100 256,100 2005 Bond Principle and Interest.

489056-00 LaSalle Commercial NMTC Loan 120,370 120,370 - 2006 NMTC Interest only- Loan to be paid by 12/27/2012

US Bank Loan - NMTC LaSalle 709,126 709,126 - US Bank Loan(lump sum) related to LaSalle NMTC- paid off

on12/27/2012

TOTAL DEBT SERVICE 2,600,645 2,600,645 1,784,287 1,784,287

DESIGNATED RESERVES & PENSION CONTRIBUTION

484006-00 Pension Contribution 280,000 280,000 307,000 307,000 3%-6% of eligible compensation. Budget = 6%

18.8% of Net Operating Surplus(excluding Parking) and before Capital

Contribution

110970-00 LIH Interest Earned 481 497 481 481 Allocate ALL to LIH Reserve-Res: 96-40.

110960-00 Sanitary Reserve 3,205 3,205 - Reserve requirement by HUD-no longer required

110660-00 Minimum Operating Reserve - - - - Maintain 5% of Operating Revenue-Council's input for the amount of

contribution- already we have enough funds in the reserve to satisfy the

requirement of MOR

TOTAL DESIGNATED RESERVES 283,686 283,702 307,481 307,481

NET OPERATING RESULT AFTER DEBT SERVICE AND DESIGNATED RESERVES

Net Operating Result after Debt

Service and Designated Reserves707,091 1,130,665 1,914,072 1,914,072

CAPITAL RESERVE ACTIVITY

110630-00 Capital Replacement Reserve PDA 707,091 1,130,665 1,914,072 1,914,072

110670-00 Capital Replacement Reserve GAR -

Withdrawals for Capital Projects (1,396,850) (1,396,850) (1,517,168) (1,517,168)

Excess Withdraw/(Contribution) to

CRRF689,759 266,185 (396,904) (396,904)

BALANCE - - - -

Page 33


by Revenue Source

October 16, 2012

PDA Operating Budget


2013

Proposed by the Pike Place Market PDA Staff


PIKE PLACE MARKET 2013 OPERATING BUDGET BY REVENUE SOURCES

1. Direct expenses are allocated 100% to their respective categories

2. All other expenses are allocated based on the % sq. footage / % revenue of Commercial, Residential, Daysatall, Parking

3. Additional analysis and assumptions have been applied along the allocations

TOTAL COMMERCIAL RESIDENTIAL

DAYSTALL

Crafts & Farm

and Community

Programs and

Events

PARKING Social Services

REVENUE SOURCES sqft % sqft % rev

79% Commercial 369,660 65% 61% 9,148,728 9,068,728 80,000

18% Residential 83,989 15% 17% 2,518,072 2,518,072

3% Daystall 13,823 2% 8% 1,144,673 1,144,673

46747200%Garage &

Surface Lots98,650 17% 14% 2,156,731 2,156,731

566,122

TOTAL OPERATING INCOME 14,968,204 9,068,728 2,518,072 1,224,673 2,156,731 -

61% 17% 8% 14%

COST CENTERS

Property Management Expenses 1,780,798 370,771 468,821 559,499 360,708 21,000

Operating Expenses 3,905,458 2,696,183 790,115 226,160 193,000 -

Utilities 1,928,000 1,454,257 325,843 85,000 62,900

Insurance 436,297 265,794 84,503 33,611 52,390

Administration Expenses 2,028,829 1,230,507 431,448 165,874 182,000 19,000

Marketing 504,190 359,190 32,400 80,000 27,600 5,000

Market Foundation 287,466 287,466

TOTAL COST 10,871,038 6,376,702 2,133,129 1,150,144 878,598 332,466

59% 20% 11% 8% 3%

NET OPERATING SURPLUS 4,097,166 2,692,026 384,943 74,529 1,278,133 (332,466)

NONOPERATING REVENUE AND EXPENSES

Misc. Income 48,400 28,400 20,000

Debt Service (1,784,287) (728,432) (169,790) (886,065)

In Kind (125,000) (125,000)

NET SURPLUS 2,236,279 1,991,994 215,153 74,529 392,068 (437,466)Finance Packet 10.16.12

PIKE PLACE MARKET 2013 OPERATING BUDGET BY REVENUE SOURCES

1. Direct expenses are allocated 100% to their respective categories

2. All other expenses are allocated based on the % sq. footage / % revenue of Commercial, Residential, Daysatall, Parking

3. Additional analysis and assumptions have been applied along the allocations

Summary:

revenue/sq foot $24.53 $29.98 $88.60 $21.86

cost /sq foot $17.25 $25.40 $82.81 $8.91

net profit/sq foot $7.28 $4.58 $5.79 $12.96

profit margin 30% 15% 7% 59%

utility/sq foot $3.93 $3.88 $6.15 $0.64


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