1 PRELIMINARY FINDINGS AND REPORTS RELATIVE TO STUDY OF MARTINSVILLE REVERSION FROM A CITY TO A TOWN

2 TOWN REVERSION STUDY STATUS CONTINUING INCREASES IN COSTS  (UTILITIES, SALARIES, CAPITAL EXPENDITURES) ALONG WITH REDUCED TRANSFERS  (ELECTRIC, REFUSE, WATER & SEWER) WILL CONTINUE TO FORCE INCREASES IN UTILITY RATES AND PROPERTY TAXES OR REDUCTION/ELIMINATION OF SERVICES

3 PREVIEWING COST INCREASES TO UNDERSTAND FUTURE CITY EXPENDITURES, CONSIDER TYPICAL ANNUAL INCREASES:

4 PREVIEWING COST INCREASES TO UNDERSTAND FUTURE CITY EXPENSES, CONSIDER TYPICAL ANNUAL UTILITY OPERATIONAL INCREASES:

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6 CAPITAL IMPROVEMENT (TO FY2010)

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9  SCHOOLS CAPITAL EXPENSE NEEDS TO BE DETERMINED  TOTAL CAPITAL IMPROVEMENT (WITHOUT SCHOOLS) IS $18,454,475

10 AS A TOWN, MARTINSVILLE WOULD LOSE REVENUE IN THESE AMOUNTS…

11 … BUT WOULD ELIMINATE THE FOLLOWING EXPENSES

12 THE TOWN COULD NOT ENTIRELY ELIMINATE SOME SERVICES AND POSITIONS:

13 PROJECTED NET SAVINGS FROM REVERSION $2,593,630 FINANCIAL SUMMARY

14 PROJECTED TAX RATES IN TOWN STATUS

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19 SUMMARY  IF MARTINSVILLE IS TO MEET IMPENDING FINANCIAL CHALLENGES WITHOUT IMPOSING HIGHER TAXES, FEES AND UTILITY RATES, IT MUST EITHER REDUCE SERVICES OR FIND A WAY TO MINIMIZE ITS EXPENSES  AS A TOWN, MARTINSVILLE WOULD GAIN EFFICIENCIES RESULTING IN SIGNIFICANT NET SAVINGS TO TAXPAYERS

20 CONCLUSION  ALTHOUGH THE REVERSION STUDY IS NOT YET COMPLETE, INITIAL FINDINGS SHOW THAT, IF THE CITY’S MOTIVATION FOR REVERSION IS FINANCIAL, ENOUGH EVIDENCE EXISTS TO SUPPORT COMPLETION OF THE STUDY AND COUNCIL’S STRONG CONSIDERATION OF SEEKING TOWN STATUS.