Economic conditions may be as bleak as a rainy day around the country, but the city of Maple Valley appears to be weathering the storm.

Finance Director Tony McCarthy gave a quarterly update on the city’s financial health at the City Council special meeting Tuesday evening at the Lake Wilderness Lodge.

McCarthy told the council the city ended 2008 up about $400,000, which was better than was expected.

“The good news is we are ahead,” McCarthy said. He also told the members the city is expected to end 2009 “better than anticipated.”

But there were a few thorns among the rosy news.

McCarthy pointed out the sales tax revenue was down 12 percent and real estate excise tax fell 54 percent.

With the home building and selling market in a stall, the city is not seeing the funds it has in the past.

McCarthy said each new home brings in about $14,000 per year for the first two years, which includes building permit fees, transportation impact fees, construction sales tax.

After two years the homes continue to generate funds for the city through property tax revenue and surface water management fee, utility tax funds and the sales tax people pay when shopping in the area.

McCarthy said,”not building houses impacts capital funds.”

According to McCarthy’s report, in 2008 428 single family homes were sold in contrast to 2007 when 620 homes were sold.

Despite the problems, which includes total revenues down by 11 percent, the city appears to be holding steady in rough economic waters.

General fund expenditures were down 7 percent. McCarthy noted the lodge renovations were nearly completed and projects like Summit Place, the new name for the donut hole property, could provide funds for the city.

McCarthy said in March the city and council members would meet for a preliminary review of the capital improvement projects funds.