I am very pleased to present the proposed FY 2010-2011 City of Roseburg budget for your consideration. While these challenging economic times have had an impact nationwide, the City of Roseburg has been able to continue providing the basic services to which our citizens have become accustomed.

We move into the next fiscal year with “cautious optimism” regarding our future budget and financial issues. We will be working with our community partners on major projects that will help stimulate our local economy:

Waterfront Plan to take advantage of the natural beauty of the Umpqua River.
Continue efforts towards Urban Growth Boundary expansion for residential, commercial and industrial land development opportunities.
Completion of CORP Winchester Switchyard Relocation to create more capacity for rail transportation and reduce impacts on access to downtown Roseburg.
ConnectOregon III grant to lengthen the airport runway to 5,000 feet.

I want to begin by thanking the many City Staff responsible for assembling this proposed budget. Many employees assist in the document’s preparation. Special thanks go to Cheryl Guyett, Director of Finance and Management Services. As in past years, Cheryl spent many long hours putting the budget together and making sure it is as accurate as it can be.

CITY GOALS AND OBJECTIVES

In 2007, the Council adopted the 2007-2012 Strategic Plan which outlined objectives, strategies and actions within four principles: Great Neighborhoods; Safe City; Healthy Economy; Effective Government. The Strategic Plan was a major undertaking. Now that we are halfway through its implementation, we have recognized a need to improve the quality and effectiveness of the document. Therefore, Staff will be updating the Strategic Plan to better reflect, not only the City Council’s goals, but the departmental goals outlined within this budget document. The finished product will assist us with the continual improvement that the City must engage in to keep Roseburg prepared for the future.

SUCCESSES

Our employees have worked hard this past year to implement the policy direction given by the City Council and to realize the $1 million General Fund expenditure reduction to which we committed at the conclusion of last year’s budget hearings. They have used the financial resources given by the Budget Committee to provide services that are needed and valued by City residents. A few of the more notable successes include:

City Administration and Finance Departments

Processed over 200 business registrations, 10 OLCC licenses, 32 special OLCC permits, 50 formal public records requests, 45 special permits, 30 ordinances, 25 resolutions and sale of 26 vehicles/equipment.
Processed multiple new telecommunication franchises and negotiated increase in electrical franchise fee.
Completed annexation of 185 acres of property and associated census tabulation.
Completed process to recruit, screen and hire 26 full time and seasonal employees, promote/transfer 8 current employees and transition 17 from City employment.
For the 16th consecutive year, received the Government Finance Officers Association award for “Excellence in Financial Reporting.”
Received seventh Safety Award from the League of Oregon Cities.
Converted to new utility billing system which also expanded billing and payment options
Implemented Voice Over Internet Protocol phone system.
Upgraded and relocated City servers to Public Safety Center providing redundant cooling and security.
Implemented secured wireless networking for City facilities.

Police and Fire Departments

Completed relocation to Public Safety Center.
Acquired and completed training on new platform ladder truck.
Roseburg Area Youth Services (RAYS) experienced 91.2% success rate. Higher than the national average.
Enhanced building, apartment and business inspections.
Pursuing station replacement grant for Garden Valley Fire Station.
Implemented new records management software.
Assisted in numerous major case investigations.
Volunteers in Police Service (VIPS) contributed 3242 hours of service handling 103 abandoned vehicle complaints, 453 handicap parking violations, 83 vacation house checks, assisted with foot patrols and special events.
Fire call volume of 4200; 3200 of which were medical in nature. Police call volume of 19,000.

Community Development

Director Brian Davis received the “Distinguished Leadership Award by a Professional Planner” from the OAPA.
Completed annexation and site review for Costco development.
Completed West Avenue Redevelopment Plan, Bicycle-Pedestrian Plan and Mill-Pine Historic District Master Plan.
Implemented new floodplain mapping.
Played major role in initiation and processing of seven annexations.
Worked with downtown businesses to facilitate creation of the Main Street Association.
Formation of Vertical Housing Development Zone.
Served as local liaison for 2010 Census.
Worked with Casa de Belen to obtain $800,000 grant for facility purchase.

Public Works

Received grant for and installed new playground equipment in Stewart Park.
Implemented new recreation programs including “Sticks for Kids”, Moves in the Park, Museum in the Park, Adult Fitness Boot Camp, lessons for disc golf and skateboarding.
Worked with Phoenix School on riparian and wetland restoration.
Replaced 4700 feet of high maintenance water mains.
Replaced Dixonville Pump Station No. 2.
Completed Long Range Water Supply Plan and Water Treatment Plant Preliminary Design Report.
Completed Vine Street Improvements and Garden Valley Sidewalk Local Improvement District.
Completed Public Safety Center construction management.

CHALLENGES AND OPPORTUNITIES

We also face a number of continuing challenges and opportunities in the coming fiscal year, to include:

Identify revenue sources to address pavement condition needs.
Complete contract negotiations with three labor groups.
Address mounting operational costs due to fuel price, worker’s comp, health insurance, PERS and related increases.
Work with community partners to respond to Oregon State Veterans Home requirements.
Work with Cow Creek Band of Umpqua Tribe of Indians business incubator program.
Develop a Sustainability Plan by Fall 2010.
Complete City’s first Five-Year Capital Improvement Plan for 2010-2015.

OVERALL BUDGET SUMMARY

The total FY 2010-2011 proposed budget, including General Fund and all enterprise fund expenditures is proposed at $51,570,442 compared to the current year adopted budget of $52,099,293. Through the very dedicated efforts of City Staff, we were able to realize $1 million in General Fund savings as was committed to at the conclusion of last year’s public hearings. In addition, we will begin 2010-2011 with a 30% Reserve.

GENERAL FUND SUMMARY

Basic operations in the General Fund include Parks, a portion of Public Works, Police, Fire, Community Development, Finance and Management Services, Municipal Court and Administration. The General Fund provides funding for daily services most residents recognize and use frequently. The FY 2010-2011 General Fund is proposed at $22,251,716.

GENERAL FUND REVENUES

Total Operating Revenues are proposed at $16,376,293; an increase of $285,726 from the 2009-2010 adopted budget of $16,090,567. A factor in the increase is the result of additional property taxes and state shared revenues from recent annexations. Property taxes continue to be the largest share of General Fund revenues. Current year property taxes are planned to increase by $448,000 or 4.3% from the 2009-2010 adopted budget of $10,352,000.

With the passage of Measure 50 in 1997, the property tax system changed from a levy based system to a modified tax rate system. A permanent tax rate was established at $8.4774 for the City of Roseburg. As an example, a home with an assessed value of $150,000 will pay $1,272 in property taxes to the City.

GENERAL FUND EXPENDITURES

General Fund expenditures are proposed to decrease $1,335,495 from the current year adopted budget. Total General Fund expenditures are proposed at $16,891,941 for next fiscal year, equaling a 7.3% decrease. A majority of this is due to Budget Committee direction to prepare the proposed budget with the goal of maintaining current year spending levels.

ENTERPRISE, SPECIAL REVENUE, AND CAPITAL PROJECTS FUNDS

Enterprise Funds, Special Revenue Funds and Capital Projects Funds actually comprise the majority of the City’s overall budget. Enterprise Funds include the Water Fund, Storm Drainage, Off Street Parking, Airport and Golf. Special Revenue Funds consist of Public Works, Grants, Downtown Development District, Hotel/Motel Tax, Bike Trail, Housing Rehab, Economic Development and the Stewart Trust. Capital Projects Funds consist of Transportation, Park Improvement, Equipment Replacement, Assessment Improvements and Facilities Replacement.

Most of these funds will remain constant with a few changes that will be explained during the budget process.

I look forward to reviewing the proposed budget with you and wish to thank the following staff members who worked on the preparation of this budget.

Cheryl Guyett, Finance and Management Services Director

Brian Davis, Community Development Director

Sandy Cook, PW Department Staff Assistant

Sheila Cox, City Recorder

Debi Davidson, Management Technician

Ronda Fluetsch, Account Clerk

Barbara Gershon, Human Resources Director

Esther Howerton, Payroll/Benefits Technician

Debbie Keller, Accountant

Mike Lane, Interim Fire Chief

Nikki Messenger, Public Works Director

Lesa Miller, Accountant

Mark Nickel, Police Chief

Respectfully submitted,

P. Eric Swanson

City Manager

900 SE Douglas Avenue

Roseburg OR 97470

Phone: (541) 492-6700