One of the most important responsibilities I assume as your City Manager is to prepare, propose and carry out the annual budget. The proposed 2008-09 budget, is a balanced and sustainable plan that maintains current year services into next year. With the reduction and potential loss of federal safety net funding, Douglas County has significantly increased the city’s share for dispatch and other related joint operational costs in the proposed budget. In addition, we have already experienced a significant decrease and stand to lose all of the aid to cities road funding assistance from Douglas County. There are no dramatic shifts to reduce or increase service levels from the current year.

The proposed budget maintains the existing service level, in spite of rising costs. We have been able to do this by staying focused on the future, finding efficiencies, collaborating with other jurisdictions and investing in technology. I view the financial future of the City with much more optimism than similar communities across the country that have been impacted by the mortgage crisis and have prepared a budget that contains no surprises and keeps the City’s finances on sound footing.

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

The City Council finalized a process to adopt a new set of goals and objectives that will guide the City for the coming years. The Council has adopted objectives, strategies and actions within four principles:

► Great Neighborhoods

► Safe City

► Healthy Economy

► Effective Government

The 2007-2012 Strategic Plan was reviewed by the various City Commissions for comment and subsequently adopted in June of 2007 by the City Council. The budget before you has been prepared with these four principles and strategic plan in mind. You will see examples of proposed spending that supports achievement of these goals.

SUCCESSES

Our employees have worked hard this past year to implement the policy direction given by the City Council. They have used the financial resources given them 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

► Sheila Cox worked as Interim City Manager and Debi Davidson as Acting City Recorder while City Manager Eric Swanson was in Iraq (Sep-Jan). Both served with distinction.

► Processed over 250 business registrations, 65 formal public records requests, 29 ordinances and 24 resolutions, 3 annexations, 5 street vacations, and 3 property sales.

► Completed condition assessment of all City buildings; facility management program underway.

► All three labor union contracts were settled in the last year.

► For the 14th consecutive year, received the Government Finance Officers Association award for “Excellence in Financial Reporting”.

► Worked with volunteers to ensure another enjoyable and successful Harvest Festival.

► Banking services were awarded after a Request for Proposals process.

► Established electronic payment options for vendors.

► Website redesigned and launched (www.cityofroseburg.org), and includes televised City Council and Planning Commission meetings.

► “PEG Ready” Council Chambers remodel.

► City Council adopted a five-year strategic plan for the City. Themes are: A Safe City; Great Neighborhoods; A Healthy Economy; and an Effective Government.

► Improved municipal court collections process resulting in increased revenues generated

Police and Fire Departments

► Roseburg Area Youth Services (RAYS) made a successful return. Peer Court had 200 referrals and adjudicated 77 offenders.

► Police Department hired five new police officers.

► Police Department cleared a number of major cases.

► Investigated 6,500 reported crimes, arrested 289 DUII suspects, issued 6,970 traffic citations, and handled 20,600 calls for service.

► False alarms were down from over 1,000 to just 312.

► Harvard Fire Station reopened on August 1st.

► Fire response times reduced by 45 seconds.

► Fire prevention inspections increased by 30%.

► Tripled the number of public education presentations.

► Substantial progress made toward construction of a new Public Safety Center; Awarded $11.75 Million contract to Harmon Construction, Groundbreaking on a new Public Safety Center with an expected completion date by Summer of 2009.

►Police Records Division hired one FTE now open 8-5.

►Added motor police officer from existing staff with significant increase in citations issued.

►Relocated property and evidence storage from the Flegel Center.

►Developed “Illegal Transfer” ordinance.

►Maintained School Resource Officer program in conjunction with Roseburg School District.

Community Development

► New Hillside Development Ordinance completed.

► Continued planning for Waterfront Area.

► Bicycle/Pedestrian Plan moving forward which will include a 20-year vision for the City.

► New Buildable Lands Inventory (BLI) completed which justifies the need for 1,200 additional residential acres.

► Review of Commercial/Industrial BLI needs began.

► Updated and adopted over 50 LUDO amendments recommended in TSP

► Obtained a Community National Flood Insurance rating of 8

► First year of participation in the Safe Routes to Schools program

► Established RFP process to review development proposals for city owned properties on General Ave. and N. Jackson St.

Public Works

► Constructed 130 new parking spaces to serve Fir Grove Park.

► Update to the City’s Parks and Recreation Master Plan is almost completed.

► Very successful Roseburg Air Show.

► Nearing completion of a major airport expansion (with a few problems and issues to resolve!)

► Acquired Dixonville Water Association.

► New access into the Roseburg Valley Mall completed.

► Ad-hoc committee established to provide advice on potential financing techniques for pavement maintenance.

► Installed more streetlights downtown on Jackson Street.

► Completed South Stephens project to include paving improvements, sidewalks, street lighting, and traffic calming.

► Secured new concessionaire for Stewart Park Golf Course.

CHALLENGES AND OPPORTUNITIES

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

► Hire/retain a qualified city work force.

► Identify new revenues sources to address $11 Million in pavement condition needs.

► Work with the Oregon Department of Transportation (ODOT) and community on bridge and interchange replacement/repair projects along the I-5 corridor and further identify options outlined in the Highway 138 corridor solutions study.

► Address mounting operational costs due to fuel price, worker’s comp, health insurance, PERS and related increases.

► Coordinate with other jurisdiction in Douglas County on the future of Umpqua Transit.

► Follow through on acquisition of Fire Department Ladder Truck and AED replacement.

► Initiate Fire Department (IAAF) labor contract negotiations.

► Work with downtown groups to establish Oregon Main Street program.

► Continue progress on completing Bicycle/Pedestrian, Waterfront, RARE, Mill-Pine Neighborhood and West Ave. Plans.

► Get community ready for upcoming 2010 Census.

► Identify FAA funding for future Airport Improvement Projects (Taxiway, Instrument Approach and Runway Extension).

► Investigate the establishment of a citywide WIFI wireless network for use by city departments and the public.

► City sponsored Fourth of July Celebration.

► Photo Red Light Enforcement.

OVERALL BUDGET SUMMARY

The total FY 2008-2009 proposed budget, including General Fund and all enterprise fund expenditures is proposed at $63,377,896 compared to $61,788,052 within the FY 2007-2008 adopted budget. The reasons for the increase are many and will be outlined for you during the budget process.

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 2007-2009 General Fund is proposed at $23,807,311.

GENERAL FUND REVENUES

Total Operating Revenues are proposed at $15.654 million; a decrease of $72 thousand from the estimated 2007-2008 actual revenues of $15.726 million. Declining investment interest rates and uncertainty of the economic outlook for the coming year is a factor in the decrease.

Property taxes continue to be the largest share of General Fund revenues. Current Year property taxes are planned to increase by $290 thousand or 3% from the estimated 2007-2008 actual of $9.67 million.

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 increase $4.07 million from the current year estimated actual. Total General Fund expenditures are proposed at $19.567 million for next fiscal year, equaling a 26.3% increase. A majority of this increase is due to the transfer of $2.25 million from the General Fund to the Facilities Replacement Fund for the new Public Safety Center.

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 to you 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

Fred Alley, Community Development Director

Sandy Cook, PW Department Staff Assistant

Jack Cooley, Fire Chief

Sheila Cox, City Recorder

Debi Davidson, Management Technician

Ronda Fluetsch, Accounting Technician

Barbara Gershon, Human Resources Director

Nikki Messenger, Public Works Director

Lesa Miller, Accountant

Mark Nickel, Police Chief

Respectfully submitted,

P. Eric Swanson

City Manager

City of Roseburg

900 SE Douglas Avenue

Roseburg OR 97470

Phone: (541) 672-7701

Fax: (541) 673-2856