Good Evening. I would like to welcome those of you in the council chamber this evening, as well as those of you watching at home, to this 2010 State of the City Address.

Let me begin my remarks by noting that state of the city address for cities like Roseville is unlike state of the union addresses, state of the state addresses, or even state of the city addresses by mayors in some other cities.

In those cases the person giving the address is also the chief executive responsible for the administration of the executive branch of government. In Roseville the mayor is a part of the legislative branch, the council.

So, it is a little presumptuous of me to be giving an address. However, I think there is value in an address to you, the residents of Roseville, about the issues the city has confronted during the past year, some of our accomplishments, and the challenges that we will be confronting in the future.

My goal is to provide you with this information in a straightforward and objective fashion. My hope is that at the end of my address you will have a better sense of where we are as a city. But more than that, I hope that with this information, you, the citizens of Roseville can participate in a more meaningful way in dealing with the challenges and embracing the opportunities presented to us.

By many measures, 2009 was a tough year for cities and their residents. The dramatic reversal of the United States economy in 2008, really hit home for state and local governments in 2009.

During my state of the city address last year I mentioned that as part of the solution to the financial problem the state was then facing, it was looking to withhold payments to local units of government for things such as local government aid (LGA), and the market value homestead credit. Roseville had not received LGA for several years, and so when the state ultimately decided to withhold or reduce those payments, Roseville was not impacted.

However, we were scheduled to receive nearly $400,000 in Market Value Homestead Credit in 2009. In the spring of 2009, we learned that we would not be receiving those funds. That represented money that had been earmarked for general services including public safety, (police and fire), public works, (road, sewer and utilities), and parks & recreation. That unallotment occurred months after cities, including Roseville, had set their budgets and levies for 2009.

As a result of those cuts, we had to reprioritize programs and services and we had to figure out a way to make do with less.

Moreover, while the City lost funds to pay for services that Roseville residents had come to expect, the economic downturn brought personal hardship to many of our residents. Too many lost their jobs or saw their hours cut. Even among people who were fortunate enough to keep their jobs, many saw their wages frozen while the value of their biggest asset, their home, stagnated and the costs of everyday items increased.

These family stressors, in turn, put greater demand on government services, creating a Catch-22 for state and local governments. Demand for services increased, increasing the workload, yet state and local governments had less money to provide services.

Again, 2009 was a tough year. But despite those difficulties, through the resourcefulness of our residents and staff, we had our share of successes in 2009.

By the beginning of 2009, the City of Roseville had submitted the update of our city’s comprehensive plan to the Metropolitan Council for approval. The comprehensive plan is the blueprint that guides land use and development in the city.

The updated plan represented countless hours of work on the part of our staff and citizens. The updated comprehensive plan considered land use, infrastructure, housing, environment, transportation, and parks and recreation. We involved hundreds of citizens as well as experts in various fields to develop the plan. We worked with the Metropolitan Council in considering regional issues as well. In October we formally adopted the plan that will be a guideline for growth in Roseville.

In October of 2009, Roseville Parks and Recreation received re-accreditation from the Commission for Accreditation of Park and Recreation Agencies. Roseville Parks and Recreation is one of only 88 agencies in the country to hold this national accreditation. Accreditation requires park and recreation agencies to respond to 155 standards representing elements of effective and efficient operations.

Getting re-accreditation was an arduous task, but not only was Roseville reaccredited, we did it by achieving 100% compliance with all 155 standards. This is the second time our Parks Department achieved this outstanding recognition. This was a wonderful accomplishment and I think further evidence that we have one of the best parks and recreation systems in the country.
In 2009, we moved forward with redevelopment in the Twin Lakes area. Our Public Works and Community Development Departments worked hand in glove to make this happen. Foremost was the completion of several streets, including Mount Ridge Road, Iona Court and Twin Lakes Parkway. These streets provide access for the redevelopment of the Twin Lakes area. Adding these roadways, along with the new 400-stall park and ride built by Metro Transit, opens access and encourages new businesses to develop in the area.

Further, as part of that project we added several innovative storm water improvements along these roadways to lessen the environmental impact of the area. These innovations were in part the result of recommendations from our Public Works, Transportation and Environment Committee.

In December of 2009, we were pleased to learn that the City had received $1 million in federal funding to work on the second phase of redevelopment at Twin Lakes. This money was in addition to the $1 million we received in November from the Minnesota Department of Employment and Economic Development. These moneys will be used for land acquisition and infrastructure, including storm water, sewer and sidewalks along the Twin Lakes Parkway.

Despite the downturn in the national economy, construction and reconstruction in Roseville remained strong in 2009. Homeowners and businesses made improvements adding $57.5 million in total valuation to the community. This is slightly less than the investment in 2008, but still a strong showing.

Last year I told you about our collaboration with the Roseville Housing and Redevelopment Authority to help preserve our housing stock. Together we supported the Neighborhood Enhancement Program. Under the program city staff works to educate residents about city code requirements, identify potential code violations, and work with residents to correct problems. This program has been highly successful and well received by you, our residents.

In 2009, the City undertook several new initiatives relating to housing.

Roseville established a Housing Improvement Area with Westwood Village Townhomes. The townhome association had not set aside enough money to address their capital needs and because of a number of factors, was not able to find financing in the private sector. Rather than letting the buildings fall into further disrepair and risking the property values of the surrounding neighborhood, we established a Housing Improvement Area. Through that program, the townhome association was able to secure a bank loan. The money passed through the City, but there was no financial outlay by the City.

We also worked with a private company to upgrade the HarMar Apartments. Aeon Corporation is rehabilitating 120 units of affordable housing. Those buildings had fallen into serious disrepair, resulting in increased police calls and threatening the value of surrounding homes. This investment will help protect property values in that neighborhood and will mean more housing options for many of the people who work in our community, but have been unable to afford to live here.

The Roseville Housing and Redevelopment Authority established a new loan program to help apartment and multi-housing owners make their apartments more energy efficient.

We are continuing our rental registration efforts. Property owners who lease one to four rental units are required to register with the City. The ordinance was enacted, in part, because although rental properties are only a small portion of homes in Roseville, they have a larger share of code complaints than owner-occupied homes.

The City established a new water rate structure to promote water conservation.
We continued our efforts to increase the amount of recycling and to reduce the amount of trash we generate. The City sponsored a clean-up day and four zero-waste events to demonstrate that unwanted items don’t have to end up in the trash. Most of the items we toss away can be reused, recycled or composted.
In 2009, our police and fire continue their outstanding work to keep our community safe.

The Fire Department responded to more than 4,000 emergency calls last year. Acting Fire Chief Tim O’Neill coordinated the city’s response to the H1N1 epidemic. Although the outbreak was much less than anticipated, the city honed our emergency response efforts so that we will be better prepared for future emergencies.

The Police Department reported a 10% drop in crime between 2009 and 2008. They credit greater crime prevention efforts, proactive patrols, great follow up by investigative division and improved community policing efforts for this reduction.

In December, Roseville Police, with assistance from the East Metro SWAT, responded to a report of someone holding hostages in one of our local businesses. Our officers responded immediately and professionally and the situation was resolved without incident. I am in awe of these men and women who risk their lives 24 hours a day – seven days a week, to keep us safe.
So, despite the challenges that we faced in 2009, I think it fair to say that we enjoyed a number of successes.

Before I turn to 2010, and some of the issues that will be facing us this year, let me take a moment to note several milestones that occurred regarding individuals who had a large impact on the City of Roseville.

During the past year two of our department heads moved on to other challenges, Fire Chief Richard Gasaway left his position last July and Police Chief Carol Sletner retired in September.

Chief Gasaway devoted ten years to the City of Roseville. Under his leadership the Fire Department changed to 24-hour staffing. They implemented a firefighter training program to conduct training while firefighters are working their shifts. That resulted in a 56% increase in training hours. Rich implemented a program to respond to all emergency medical calls, increasing the department’s call load by 3,300 emergency medical calls, while maintaining a three and a half minute response time.

Chief Sletner grew up with the Roseville Police Department. She began her career in Roseville in 1982 when she was hired as Roseville’s first full-time female police officer. She quickly rose through the ranks, taking on many new challenges. Carol served as the City’s School Liaison Officer and later as the City’s Juvenile Officer. She was promoted from sergeant to lieutenant; and in 2001 to Deputy Chief. In 2002, Carol was named Chief of Police, the first female Chief of Police in Roseville and one of the few female chiefs of police in the state.

Thank you, Rich and Carol, for your service to Roseville.

In 2009 we also lost three long-time community activists and former members of the Roseville City Council. I want to note their passing.

In March of 2009, Polly Franke passed away. Polly had lived in Roseville since 1952 and was very active in the community, serving on the Roseville City Council for 8 years. I suspect there isn’t a person on the council who at one time or another didn’t receive a phone call or an email from Polly on an issue before the city. She was truly one of a kind.

Also in March former city council member and local businessman Roger Hess passed away. Roger always took such pride in the city and was encouraging to those of us who chose to be involved.

Then in May we lost former city council member John Goedeke. John had been a teacher in the Roseville School District for years. He had served on the Planning Commission and was a member of the City Council for 9 years. He continued to be active in city issues, including serving on the citizen advisory commission for the comprehensive plan update. John was not only my colleague on the city council, but was my health teacher in high school.

In my state of the city address last year I said that despite the challenges facing Roseville we are better situated than many communities because of the foresight of our original leaders. Polly, Roger, and John were all in that group and we owe them a debt of gratitude.

Let me turn now to the future. Our plate for 2010 is a full one.

Beginning this year we are undertaking a major update of our zoning ordinance. Our zoning ordinances are the portions of our city code that specifically govern what types of land uses are permitted. I talked earlier about the update of our comprehensive plan. While the comprehensive plan sets out the broader land uses and goals for development, the zoning ordinances are where the rubber meets the road. It is through the zoning ordinances that we give the force of law to our planning goals. For legal and practical reasons, our zoning ordinances have to be consistent with our comprehensive plan.

Our original zoning ordinance was adopted in 1959, and while it has been modified over the years, we have never really undertaken a comprehensive update of those ordinances. We will be doing so this year.

We are also in the midst of updating the Parks and Recreation Master Plan. This document will be a guide to the future and set the direction for parks and recreation improvements and uses in the city.

We will continue our work at Twin Lakes, moving on to the second phase of development and working to attract businesses to that area.

As we begin 2010, we have reason for optimism, but that optimism has to be tempered by the challenges we face.

The state continues to struggle to put its financial house in order. As a result of that struggle, we will not be receiving $422,000 in Market Value Homestead Credit. However, this year we knew at the time we prepared our budget that we would likely not be receiving that money and we planned accordingly. As a result, we do not find ourselves in the position we found ourselves in last year; adjusting our budget after having set our levy.

In addition, while there is certainly a long way to go, the economy continues to improve. During last year’s state of the city address I talked about how a year earlier, in February of 2008, the Dow Jones Industrial average closed at 12,254, while last year on that date it closed at 7,114. Today it closed at 10,383. I don’t want to overemphasis the significances of this, if you still unemployed this is small consolation, but it is evidence of improvement in the economy.

Last year, in setting out the challenges before us, I noted that over the next 10 years we had identified about $100 million worth of capital asset replacement needs. Using our current funding sources, we were in a position to be able to replace only $60 million of those assets.

Those needs remain. They include:
• water, sewer and storm water systems,
• street repair,
• building maintenance and repairs for the fire stations, city hall, public works facility and recreational facilities (such as OVAL, skating center, and park shelters)
• vehicle replacement - from squad cars and fire trucks to snowplows, pickups and lawnmowers.

Last year I identified three goals that I hoped would allow us to work toward closing that gap.

The first was having Council, and staff, continue to look for ways that we can provide services to residents more efficiently, resulting in cost savings. Second, was looking for other revenue sources. Third, was having City Council and City staff continue to explore alternative ways of budgeting to bring residents’ needs and desires in better alignment with the resources available. We had some success in those areas, but our work will have to continue in the upcoming year.

In 2009, we established a committee of city employees to look for ways to reduce our energy use internally. Their efforts resulted in our trimming our energy use substantially.

In City Hall gas use dropped by 18.5% and in the public works gas used dropped by 10.7% and use of electricity dropped by 8.5%. This goal was not only consistent with achieving cost savings, but also advanced our goal of reducing our energy consumption.

In 2009, we were successful in finding alternative revenue sources. Through the efforts of residents and city staff received millions of dollars from donations and grants from service organizations, businesses, individuals and other levels of government. I previously mentioned the $1 million from the Minnesota Department of Employment and Economic Development for and $1 million from the federal government for infrastructure work at Twin Lakes. In addition, there was:
• $500,000 in bonding money from the state to replace the tarmac and install electronic display boards at the OVAL and install new carpeting in the Skating Center
• $400,000 grant from Department of Justice for Police record management/field reporting package
• $297,000 from Metropolitan Council Livable Communities Program for improvements at the Har Mar Apartments
• Restroom facility valued at about $250,000 built by Central Park Foundation at Muriel Sahlin Arboretum
• $230,000 from Department of Homeland Security for impregnable vehicle for use by the East Metro SWAT
• $55,000 from Friends of Roseville Parks Foundation to upgrade Dale Street playground
• $52,000 from Ramsey County for increased Safe and Sober patrols

So we have had success looking for alternative funding sources, but we are going to have to continue those efforts in 2010. In addition, while these efforts are helpful, they still don’t address the fundamental problem of bringing expenditures in line with revenues.

In 2010, we are going to be continuing our work to develop a budget process that better brings residents’ needs and desires in alignment with the resources available. We tried to do that in 2009 through a process we have referred to as “budgeting for outcomes.”

This process met with mixed success. It is my perception that as a council, and a community, we continue to struggle with this process.

I know that some believe that we need a more specific, a more line item, approach to our budgeting process to really address our budget goals. Others have suggested that we need a better measurement of actual “outcomes” for this process to work. And still others conclude that we need more experience with the process itself in order for it to be successful.

Since I promised at the beginning of my remarks, that I would provide information in a straightforward and objective fashion, I won’t attempt to suggest that I know which of these approaches is correct. The one thing we can all agree on though is that we are going to continue to work on the budgeting process in 2010 and putting ourselves on a sustainable financial footing remains our highest priority.

Finally, before I end my remarks this evening, I know it is popular to speak ill of “politicians,” or “government bureaucrats.” Since this is my last year on the city council, and I am not seeking reelection this fall, I can make the following statement without fear that my remarks might be viewed as self-serving. Having worked closely with many of the people on the council and staff for more than a decade, I can attest to what a thoughtful, intelligent, and dedicated group of people Roseville residents have as city council members and city staff. I hope you appreciate that.

I know they invite your collaboration, and I am confident that working together we can meet the challenges before us.

Thank you and good evening.