1. "Your City" – Month 2002 DIMINISHING RETURNS The Challenge of Providing Basic Services In "Your City"

2. "Your City" – Month 2002 Overview  Services Provided –Cost of Basic Services –Funding Sources  Financial Outlook –Community Distress Signals –Challenges –Trends

3. "Your City" – Month 2002 Overview Continued  We Are Not Alone – Statewide Trends  Where are "Your City" Revenues and Expenses Headed?  What Has "Your City" Done So Far?  What Does the Future Hold for "Your City"?

4. "Your City" – Month 2002 Services Currently Provided by "Your City"

5. "Your City" – Month 2002 "Your City" Services  Property Tax Supported Services –Police –Fire –Parks –Library –Planning –Cemeteries –Airport  Services Not Receiving Property Tax Support –Economic Development –Streets –Code Enforcement –Municipal Court –Water –Sewer

6. "Your City" – Month 2002 Cost of Basic City Services – Tax Supported  Police –Total Police Budget$_______  ## Sworn Officers  ## Clerks & Support Staff  ## Patrol Cars  ## Dispatchers (or dispatch services)  Facilities  Dare, Neighborhood Watch, Community Policing  Etc.

7. "Your City" – Month 2002 Cost of Basic City Services – Tax Supported  Parks –Total Parks Budget$_______  ## Personnel  ## Parks (# Acres)  Facilities  Equipment  Utilities  Capital Improvements & Maintenance  Etc.

8. "Your City" – Month 2002 Cost of Basic City Services – Tax Supported  List Other Funds/Examples Here

9. "Your City" – Month 2002 Funding Sources  How Does "Your City" Pay for Services?

10. "Your City" – Month 2002 Funding Sources Continued  How Does "Your City" Pay for Basic Services? Funding for Basic Services does not include Utility Fees. Most utility funds are enterprise funds, meaning they operate like a business and must be self-supporting. Utility rates are not eligible to be used for purposes other than supporting the utility system.

11. "Your City" – Month 2002 What’s the Financial Outlook?

12. "Your City" – Month 2002 1.City heavily dependent on one economic sector 2.City has experienced disruption of a major employer 3.“Partner Organizations in community having economic trouble (county, school districts, etc.) Community Distress Signals Check indicates "Your City" has experienced distress signal

13. "Your City" – Month 2002 Community Distress Signals Cont. 4.A number of City’s businesses and industries having economic difficulty 5.City has limited economic development options 6.City has a fast-growing population without off-setting revenue growth Check indicates "Your City" has experienced distress signal

14. "Your City" – Month 2002 Community Distress Signals Cont. 7.City is heavily dependent on property taxes (more than 50%) 8.More than 1% of property taxes lost due to Measure 5 tax limits (compression) 9.Limited growth in assessed value (less than 3%) Check indicates "Your City" has experienced distress signal

15. "Your City" – Month 2002 Community Distress Signals Cont. 10.Expenses exceed current revenues in one or more funds 11.Declining unrestricted fund balance 12.City has developed alternative revenue sources (little or nothing left in the “bag of tricks”) Check indicates "Your City" has experienced distress signal

16. "Your City" – Month 2002 Community Distress Signals Cont. 13.Discretionary revenues aren’t keeping pace with general government expenses 14.Limited capital investment in new City facilities, equipment & deferred maint. 15.City is providing or considering provision of traditional City services via special districts Check indicates "Your City" has experienced distress signal

17. "Your City" – Month 2002 Challenges  Measure 5 Tax Limitations –"Your City" lost $_______ due to Measure 5 compression during FY 2001-2002  Measures 47/50 Tax Limitations –"Your City" has averaged a __% annual increase in assessed value during the last four years –Tax limitations compounded by lack of  Regulatory Compliance Costs

18. "Your City" – Month 2002 Challenges Continued  Providing Services to Keep Up with Growth (this bullet to be removed if no growth)  State Budget Cuts  Overall costs for "Your City" have increased by over __% over the last four years –Health, Property, Liability, Workers Comp. Insurance –PERS –Utility Costs

19. "Your City" – Month 2002 "Your City" Trends  Rising Costs and Unstable Resources Difference between current revenues and expenses balanced by using reserves.

20. "Your City" – Month 2002 "Your City" Trends  "Your City" Providing Services Cut by Others –School Security –Swim Team –Elementary and Middle School Sports Programs –Etc.

21. "Your City" – Month 2002 "Your City" Trends  Health Insurance Increases Exceed Inflation This is also a statewide and national trend.

22. "Your City" – Month 2002 "Your City" Trends  "Your City"’s Retirement Costs Are ____% of Payroll – Exceeds Statewide Average

23. "Your City" – Month 2002 "Your City" Trends  Drawdown of Reserves – Nothing Left for a Rainy Day

24. "Your City" – Month 2002 "Your City" Trends  "Your City" Has Reduced Capital Spending – Deferring Maintenance Leads to Higher Costs Down the Road

25. "Your City" – Month 2002 "Your City" Trends  "Your City" Grew Much (Slower or Faster) in the Late ’90’s than the Average Oregon City

26. "Your City" – Month 2002 "Your City" Trends  Highway Fund Revenues are Declining

27. "Your City" – Month 2002 "Your City" Trends  Revenue Losses Due to Ballot Measure 5 Compression

28. "Your City" – Month 2002 "Your City" Trends  "Your City" Revenue Growth Lags Behind the Statewide Average

29. "Your City" – Month 2002 We Are Not Alone – Statewide Trends Based on information from the League of Oregon Cities report “Diminishing Returns: Oregon Cities’ Struggle to Afford Basic Services (April, 2002). (All data was adjusted for inflation.)

30. "Your City" – Month 2002 We Are Not Alone – Statewide Trends  Property tax revenues per capita have remained flat or have decreased in most communities during the past 5 years (inflation adjusted)  49 cities are in compression today (up from 41 previously)  Assessed value has not reached the 3% ceiling allowed in 31 Oregon cities.

31. "Your City" – Month 2002 We Are Not Alone – Statewide Trends Continued  General Fund/Property Tax revenues are decreasing as a share of all city revenues  Capital funding has generally decreased as a percent of total expenditures  Ending General Fund balances declined in many cities during the 1990’s  Payroll costs for insurance and retirement have increased throughout the state

32. "Your City" – Month 2002 We Are Not Alone – Answers to Survey Questions  77% of survey respondents said they have felt, or will soon feel, the effects of Measures 5 and 50  61% of respondents said property tax limits have already affected city revenues and services  59% of respondents said they expect to experience deteriorating financial conditions  Only 22% of cities said they were better off financially in 2001-02 than a year earlier

33. "Your City" – Month 2002 Cities’ Ability to Meet Financial Needs in 2000-2001 NA 19% Not sure/no change 54% 54%59% Less able 46% 46%22% Better able National * Oregon * Compares Oregon with results of a survey conducted in March-April 2001 by the National League of Cities of 325 cities.

34. "Your City" – Month 2002 Assessed Value Changes – 1999-00 to 2000-01

35. "Your City" – Month 2002 Impact of Compression 2000-01

36. "Your City" – Month 2002 Where Are "Your City"’s Revenues and Expenses Headed?

37. "Your City" – Month 2002 Demands and Costs Will Continue to Increase   Public expectations for services continue to grow: faster, better, more   Pension/health care cost continue to increase   State/federal mandates: especially environmental will impact the cost of regulatory compliance

38. "Your City" – Month 2002 Demands and Costs Will Continue to Increase   Other uncontrollable costs will impact city finances: – –Energy – –Property/liability insurance – –Litigation – –Natural disasters – –Binding arbitration for public safety and other employee bargaining units

39. "Your City" – Month 2002 Existing Revenues for Basic Services Will Continue to Decrease  Impacts of Measures 5, 47 and 50 will continue to limit property tax revenues  Gas taxes will not keep up with inflation, population growth  Economic recovery will be slow

40. "Your City" – Month 2002 Existing Revenues for Basic Services Will Continue to Decrease  Other revenue sources such as State Shared Revenues, Timber Receipts, Franchise Authority, Investment Income, etc. will decrease or remain stagnant  SDC’s will be inadequate to cover the cost of growth

41. "Your City" – Month 2002 What Has "Your City" Done So Far?

42. "Your City" – Month 2002 Strategies Already Implemented by "Your City"   Switched Health Insurance Providers – –Annual Savings: $ ____   Energy Conservation Measures – –Annual Savings: $ ____   Joined Local Purchasing Pool – –Annual Savings: $ ____

43. "Your City" – Month 2002 Strategies Already Implemented by "Your City" Continued.   Reduced frequency of parks maintenance – –Annual Savings: $ ____   Contracted economic development activities out – –Savings: $ ____

44. "Your City" – Month 2002 What Does the Future Hold for "Your City"? It’s Up to You!

45. "Your City" – Month 2002 Options  Service Cuts - Closure of fire station - 5 fire fighters - Elimination of after school sports programs - No improvements to Main St. intersection - Deferred maintenance to Community Center  Local option levy for ______

46. "Your City" – Month 2002 Options Continued  Street Utility Fee  Business License Tax  Special Service District  Community prioritization of city services (Corvallis model)

47. "Your City" – Month 2002 We Want to Hear From You!

48. "Your City" – Month 2002 Contact Information  Contact City Hall "Your City" #1 Main Street "Your City", Oregon 97000 Telephone: (###)###-#### Fax: (###)###-#### E-mail/Web: city@ci.anycity.or.us city@ci.anycity.or.us