STATE OF THE CITY

2003

October 7, 2003

INTRODUCTORY COMMENTS

This is the 5th time that I have had the privilege of presenting to the people of Ottawa this State of the City message. This event has always been sort of a ying and yang kind of thing, where we look back at the past year at our accomplishments, and sometime disappointments, and at the same time look forward to the challenges and opportunities that await us.

Afer four years in office, the future has become the past, and I thought it would be interesting to look back at the comments I made at my fist State of the City address in 1999. I was anxious to see if time would prove my vision for Ottawa at that time to have been simply naive, or possibly prophetic.

There was one general philosophy I discussed, and a list of about ten items that I believe were the generally shared goals of the then-new Council.

The general philosophy was one of open and inclusive government, inviting citizens to become actively involved in City government, the Council having creating nine new committees in our first few months of office.

The goals set forth four years ago were:

1.	development of a comprehensive City plan

2.	increased job opportunities

3.	downtown revitalization

4.	expansion and improvement of parklands and recreational facilities

5.	improved City water

6.	maintenance and improvement of City services

7.	an urban forestry and beautification program

8.	exploring annexations for residential and commercial development, and

9.	aggressive pursuit of grants, fees and all available sources of funding, short of general taxation

I believe we have accomplished or made great strides in achieving all of those goals and in many cases, primarily because of the inclusive concept of government and the hard work and dedication of hundreds of citizen volunteers on committees, boards and commissions.

So, I think we are on the right path. In establishing our vision we have set the bar high. I still think the great architect and urban planner, Daniel Burnham said it best, "Make no small plans, they have no magic to stir men's blood. Make big plans, aim high in hope and work."

BUDGETING IN TOUGH FINANCIAL TIMES

I'd like to talk about City finances in tough times. Even though the entire country is experiencing economically challenging times, and in particular local governments, one great advantage the City now has is the budget process put in place by the last Council. The budget process allows us to better plan and monitor the City's finances, and replaced a previous appropriation ordinance process which was a weak financial tool.

The City is also effected by new accounting regulations for government entities, commonly referred to as GASB 34. In discussing with our auditors the impact of the new requirements on the City it turns out that all of our efforts of financial reform over the past few years have been consistent with the GASB 34 requirements. We have been moving in the right direction and will be in compliance with GASB 34 as those regulations take effect.

Last spring the City adopted a balanced budget for fiscal year 2004 which began this past May. Many tough decisions were made in that process. With flat or declining revenues, many worthy projects had to be cut or scaled back and pay raises deferred. Our general operating fund and other funds generally provide for spending that does not exceed projected revenues. The primary exception this year is in the water/sewer fund where we plan to spend more than revenues, deliberately dipping into a $3 million reserve to fund some significant needed infrastructure improvements, including a new water tower as well as long overdue repairs and upgrades at the wastewater treatment plant.

Finance Commissioner Ed Whitney and I monitor monthly financial reports of revenues and spending to ensure they are in line with the budget, as do all of our department heads. Some hard decisions were made few years ago, such as the implementation of impact fees and ambulance fees, have helped us through these tough times. Currently the City's general fund balance is over $1 million and the reserves in all funds is a healthy $7.5 million.

INSURANCE

The City is not untouched by the Nation's healthcare crisis, and providing health insurance benefits for City employees and retirees is probably our single most daunting budget challenge. The City is self-insured, having stop-loss and aggregate policies to cover most claims in excess of $45,000 per year per person per year.

The City's healthcare claims went up 65% in a one year period, from about $1.1 million in fiscal year 2002 to $1.9 million in fiscal year 2003 . In January the City implemented a PPO to attempt to relieve some of the claims expense burden. To date, the PPO has resulted in a savings of about 26%, however our claims still have increased over the same time period in 2002 and over our budget projections.

The City continues to explore avenues to lessen the financial burden of the health insurance, while meeting contractual obligations to our employees and retirees. However, the scope of insurance coverage as well as the amount employees contribute are governed in most cases by union contracts, so much of what we can do is limited to the extent that our employees understand the realities of health insurance costs and are willing to share in the expense. So far both our AFSCME union and our appointed personnel are paying increased contributions, which on January 1 will rise to 20% of the actual cost of coverage. This issue is now in arbitration with respect to our police department personnel and is a subject of negotiations with our fire fighters. We are now carefully trying to determine how far over budget our insurance costs will be, and the extent to which we will have to further cut expenditures to avoid deficit spending.

The City also provides life insurance to employees and retirees and on a slightly better note, the Council recently approved a change in vendor for the life insurance benefit, which will result in a monthly premium savings in excess of 50%.

ECONOMIC DEVELOPMENT

Last year Ottawa received DCCA's Competitive Community Initiative award for attaining stage 5, or the highest status in the State's competitive communities initiative program. This award followed a community self-assessment initiated by the Chamber and the development of a community evaluation action plan, identifying goals and priorities and the actions needed to obtain those goals. Receipt of this award means a more favored treatment by the State's Department of Commerce and Economic Opportunity, including the forwarding of a broader range of potential investors and job creators to our community. The City also received a similar award from Illinois Power, one of our economic development partners. Both awards are partly the result of having in place a strong economic development team that continues to aggressively develop and market economic development opportunities. City Engineer Gary Pike represents the City on this team, along with Boyd Palmer, ben Wiegmann, and Linda Thomas-Wallace for the Chamber. Other team members include Illinois Power and Nicor, the Department of Employment Security, IVCC, the financial community, building trades union and others.

The City this past year annexed 536 acres of land on east Route 6 creating the Ottawa Industrial Park. A TIF was formed for the district and the City has purchased the western most farm consisting of about 70 acres with TIF revenues. We have installed water and sewer for unit 1 of the industrial park with TIF revenues and are planning to acquire 78 acres from Greater Ottawa which will comprise unit 2.

The industrial park offers improved land with both great highway and rail access. The City has retained Colt Landreth Marketing and Development to help develop and market the park, to create new jobs and expand our real estate tax base. We anticipate the park being developed with underground utilities, landscaping and amenities to help make it competitive with industrial parks closer to the Chicago metropolitan area.

A few months ago the City, in cooperation with LaSalle and Grundy Counties, nine other communities and the Illinois Department of Transportation completed the feasibility study for commuter rail service in the Illinois Valley. The study finds that the concept is feasible, there being no fatal flaws. The communities are now reviewing the document and it is my hope that we will regroup in the next few months to determine the next course of action. Already we have received assurances from the Illinois Department of Transportation of their continued cooperation, including financial support.

The worst news locally on the economic development front has been the national economy. Many companies looking at properties in Ottawa have not gone elsewhere, but have simply delayed any decisions on new ventures until demand for their products improves. We are doing everything we can to be ready when the economy improves.

J. Merle Jones Trucks is building a new facility on East Stevenson Road for December occupancy, retaining 20 jobs in the community.

Tourism remains a vital industry in this community, last year translating into about 60,000 overnight stays at local hotels, with visitors spending over $4 million in the local economy, and generating about $188,000 in hotel tax revenues that help fund the Ottawa Visitors Center and many of the City's special events. The Visitors Center, the City and the Chamber have been collaborating on projects more than ever to maximize the success of all tourism efforts.

Before I move on to the next topic, I must say how much I have enjoyed working with the Chamber's new Executive Director, Linda Thomas-Wallace these past six months. Linda brings an incredible wealth of knowledge and experience to our economic development efforts and I have learned so much from her and I respect her judgement and I am so glad that she found her way back to Ottawa.

DOWNTOWN REDEVELOPMENT

Downtown redevelopment continued at a good pace over the past year. Two years after implementation of our downtown TIF, we are beginning to see significant new construction in the downtown area for the first time in a long, long time. Blackley Cleaners recently moved into its new facility and the adjacent Insurance & Investment Planning building is under construction. Ottawa Savings Bank is about to begin a $3.2 million expansion project. Union Bank has announced a new downtown drive-in facility and a completely new bank to Ottawa, First State Bank, is locating at the northern end of downtown at the old Oogie's restaurant site. These five projects together will exceed $7 million in new construction - undoubtedly a record for new downtown development. The trend of declining assessed valuation in the downtown has definitely reversed itself.

LaSalle Street continues to be vibrant with the storefront vacancies becoming a rarity. First Federal Savings Bank finished a large internal renovation this past year, and First National Bank completed a magnificent renovation project, and several storefront facades have been, or are under, renovation inside and out. The City recently developed a written downtown design guidelines to assist property owners and the City in revitalization efforts. The Brush with History Mural project continued this year with the creation of the largest of its murals, commemorating Ottawa as a Canal Town.

The City continues to move closer to citing a resort and conference center in the downtown Jordan block area. Of all projects taken on by the City, this one is probably the most visionary, and has required the most patience and persistence. The City has joined an incredible public/private partnership involving a great private development team, the UIRVDA bonding authority, Ottawa Area Chamber, local governments, the federal government and organized labor. We believe we are close to receiving a substantial federal grant for infrastructure improvements. We have met with both the Director of the Office and Management and Budget and the Governor, and we hope to have news soon that the State of Illinois will be joining this partnership and bring the project to fruition.

Perhaps the achievement which may have the most lasting affect on the downtown is the adoption of our downtown comprehensive plan. This plan followed the overall City comprehensive plan which was adopted in 2002, and was the result of several years of hard work by the Plan Commission, the Downtown Development Committee and many citizens and community leaders who took part in the various meetings and the planning process. The plan sets forth the community's vision of a revitalized downtown and provides a road map to achieve that vision.

This past Sunday I as among the thousands of people who filled the downtown on a very beautiful day for the annual Scarecrow Festival. In one of the stores I was introduced to a lady from the western suburbs who complimented the downtown. I made some comment about the town being charming. "It's not charm," she said. "Your downtown has class." I didn't disagree.

CITY HALL RENOVATION

The City has also demonstrated its commitment to downtown in our City Hall renovation project. In January the City moved from its temporary quarters back to newly renovated City Hall. The project was primarily financed through a special project bond, although we did receive a grant of $114,000 from the State of Illinois for an elevator and to make the entire building handicap accessible. The newly renovated facility provides safe and efficient work space for City Hall employees and provides meeting spaces for the Council and boards and commissions in a dignified setting. Our new conference rooms get plenty of use and we do not have to apologize to visitors and potential investors in our community when they visit City Hall. The newly renovated facility should serve the people of Ottawa well into the 21st century.

PLANNING

Our Department of Community Development has been very active the past year. We have acquired global positioning system equipment and City Planner Doug Carroll worked with summer interns to map the locations of 3,000 water valves, hydrants and manholes throughout the City. We now have also mapped the locations of water and sewer lines and all buildings including street addresses. (Your place mats show a sample of that work). The maps also show streets, curbs and sidewalks and allow us to inventory our infrastructure, which will be required by the GASB 34 accounting regulations, and help us plan maintenance and improvement projects.

The City continues to use its new comprehensive plan as a development guide and we are working on a final re-write of a new subdivision ordinance to help prepare for further growth . We are also finishing up revisions to the City's sign ordinance for the Council's consideration.

The Department of Community Development staff has also conducted many design review committee meetings with developers to improve the quality of development within Ottawa. I think that you will agree that many of the recent commercial developments in Ottawa have really raised the bar on design, signage and landscaping.

BUILDING AND CONSTRUCTION

Last year City Building Official Larry Halagiere issued building permits for commercial development with an estimated value of over $8.5 million, and residential development of over $6.7 million. This is an increase of approximately $2.3 million over the previous year, with three months still remaining in the calendar year.

We have adjusted many of the fees in our building department to be sure that they cover the cost of enforcement and this past year initiated a $100 annual contractor license fee for almost any kind of contractor doing business in the City. This allows us to know who these individuals or companies are and ensure that they understand City permitting procedures and building code regulations.

WASTEWATER TREATMENT

Let's talk sewage, or as Bob Shull, who heads our wastewater treatment plant often corrects me, let's talk wastewater reclamation.

One of the joys of city life is our ability to "flush and forget". That plumbing luxury is made possible only by an extensive system of over 100 miles of sewer lines and 23 lift stations which pump 2.5 million gallons of wastewater per day. This past year we installed a new pump, controls and check valves in our crucial river crossing lift station. A Scada system was also installed which enables us to now monitor all 23 lift stations from the wastewater treatment plant.

Most importantly, under the guidance of Commissioner Wayne Eichelkraut, the City just completed a facilities plan that provides a professional assessment of the existing wastewater treatment facilities and a long range plan for capital activities to fund normal operation, maintenance items, equipment replacement based on life cycle, and major capital projects to improve and/or expand the facility. Next year we will construct new head works which includes the bar screen and grit removal system at the intake portion of the plant at an estimated cost of $2 million.

By the way, I am pleased to say that the millions of gallons of sludge stored in our sludge lagoon no longer exist. Per Bob Shull, we now have millions of gallons of biosolids.

WATER DEPARTMENT

Last year the City's $7 million reverse osmosis water purification plant was completed providing Ottawa citizens with the best tasting and healthiest water in its history. With the water plant project finished Commissioner Wayne Eichelkraut and Superintendent Bob Rick have shifted the focus to replacing old water mains. Records of water main breaks showed West Marquette Street having the most. One Saturday the water department spent 8 hours repairing three spots in a 12 foot section of water main which was severely pitted. When one repair sleeve was put in place and the water turned on another spot of the pipe would pop a hole. The City invested $450,000 replacing 6" and 4" cast iron pipe with new 10" PVC. This will improve opportunity for expanding towards the west including the old American Hoechst properties while also strengthen the water supply line to the west side.

The water department also installed water main along Route 6 east to the New Ottawa Industrial Park. Looping the water main with Warehouse Drive and Chessie Lane improving the water quality and the fire flows to the businesses in the area.

The City is now working on plans for a new elevated storage facility or water tower. Recent IEPA inspections showed that we were a little short on storage. Using a study completed in spring 2003, plans are underway for construction of at least one additional tower on the north side.

STREETS

Maintenance, repair and replacement of over 100 miles of streets continues to be a daunting task. This year under the guidance of Commissioner Walsh, the City resurfaced Boyce Memorial Drive, taking advantage of a $75,000 TARP grant from the Illinois Department of Transportation. The City has committed to a 2003 street maintenance program in which approximately 4 additional miles of streets will be resurfaced. Five sets of major intersection signals near I-80 interchange were recently modernized and the City has completed three blocks of brick street restoration on Campbell and East Prospect and is starting an experimental brick street restoration pilot project on Ottawa Avenue. Assistant Street Superintendent Gary Erickson supervises the cleaning and routine maintenance of our streets and storm sewers, snow plowing, fall leaf pick up and maintenance for the City's fleet of vehicles.

PARKS

The City's parks and rivers are offering ever more diverse and quality recreational opportunities, and as these recreational opportunities continue to increase, we are finding more and more people using our parks and natural areas. Under Commissioner Eichelkraut and assistant park superintendent Russ Mammen our rather small parks department maintains our parks in what seems to be better and better condition.

This past year another section of the riverwalk was completed from the boat ramp near Marquette field westward all the way past the YMCA to Jefferson Street. Construction is currently underway on an access area which will link the I & M Canal towpath near the aqueduct with our riverwalk trail, and provide parking and eventually a restroom facility. Upon completion of this Phase 4 the City will have been the benefactor of $430,000 in grants from IDNR, the Capital Development Board and the Illinois First Program. The Ottawa Noon Rotary was instrumental in the conception of the Riverwalk project, and continues to provide significant financial contributions on each phase as the project proceeds.

State recreational grants of nearly $50,000 also allowed the City to place four new boat docks along Fox River Park and two new boat docks below the Main Street bridge.

In Rigden Park volunteers designed, built and recently painted a new shelter to compliment new playground equipment installed in 2002. New playground equipment was recently installed in Eastside Park and a new shelter is under construction there, too. A new parking lot and new playground equipment is being installed in Peck Park. Washington Square this year blossomed with shrubs and flowers planted and maintained by a host of volunteers -and the Square has never looked so good.

The City of Ottawa Playground and Recreation Board helped fund some of the park improvement projects, and more importantly continues to provide an incredible recreation program for citizens of all ages. The City's summer recreation program added more offerings this year, and now sponsors over 30 summer camps and programs for Ottawa youth. This year summer adult softball had 96 teams, the most ever. New this year is a fall adult softball league and the response has been favorable and encouraging.

The Playground and Recreation Board recently hired Annette Walters as an assistance director in charge of senior adult activities. Together with the YMCA, Reddick Library and Ottawa Savings Bank, City Rec created a Senior Network. Already the senior network has hosted a series of events for seniors 50 and over including performances by the Prairieland Singers and Readers Theatre Society, and has sponsored a senior fall dance and TaiChi classes in Eastside Park.

Next week the City will be going to Springfield to make a presentation on its grant application for improvements to Walsh Park. The Ottawa Lions Club is also helping fund the Walsh Park improvements.

Although we have a hard working parks department, many of the improvements seen in the last few years were made possible by a host of volunteers planting and maintaining flowers, shrubs and trees in our park system. The next time you see some of them watering or weeding a flower bed, please stop and given them a pat on the back.

POLICE DEPARTMENT

The Ottawa Police Department has undergone a number of changes over the past year, mostly in the administration and rank structures within the department.

During this past year Chief Dan Sedlock, a 24-year veteran of the Ottawa Police Department, retired and moved on to start another law enforcement related career. On September 9, Brian Zeilmann, a 16-year veteran of the department, officially filled the Chief's position left vacant by Dan.'s retirement.

This past year Paul Pitstick was also promoted to the rank of Captain. That promotion was followed by the promotion of four more patrolmen to the rank of Sergeant. In order to minimize the number of times that a less experienced patrol officer might be put in charge.

During this past year the Ottawa Police Department has received grant monies as well as private donations that provided for the purchase of two automated external defibrillators. These life saving devices will soon be placed in the department's squad cars following training of all police personnel. The police department continues to coordinate our Peer Jury and community service program for young offenders.

Overall the police department continues to move forward with an aggressive approach to the prevention and solving of crime within the City, through continuing training of all personnel within the department. The police department continues to be one of the most respected law enforcement agencies in this area.

Last year the police department responded to over 17,500 calls. The City's telecommunicators respond to even more calls and are the vital link between the citizens in need and the appropriate emergency responder, be it police, fire, or ambulance, in addition to handling a host of less urgent concerns. Our telecommunicators continue their ongoing training for MABAS, LEADS certification and 911 to ensure accuracy, efficiency and compliance with the current regulations and procedures.

FIRE DEPARTMENT

Within the past twelve months the Ottawa Fire Department has responded to 412 Fire Calls and over 2000 ambulance calls.

Last year the department's strong Public Fire Prevention and Safety Education Programs reached approximately 4,000 elementary aged students, high school students and adults. This week being National Fire Prevention Week the department has begun classes on Fire Prevention within the Ottawa Elementary School System. This two-part program begins with our Public Education Staff teaching Fire Prevention in the classroom followed up at a later date with a hands-on program for area children utilizing our Child Safety House.

The department continues its practice of inspecting all commercial and industrial buildings within Ottawa to insure fire safety in the workplace and fire fighter preparedness in the event of a fire in any one of those facilities.

Under the oversight of Commissioner Dale Baxter and the direction of Chief Rick Scott, fire fighter training has also been a major emphasis for the Ottawa Fire Department this year. Several buildings became available to our Department for training thanks to the assistance of Ottawa Savings Bank. The location across the street from our main fire station gave the department an ideal training facility for the spring, summer and early fall of this year. Our fire fighters engaged in 3800 hours of fire service training this year. The main emphasis this summer has been Rapid Intervention Training which has trained our staff in new rescue techniques that could save residents as well as fire fighters in distress. Ten other departments which are part of our Mutual Aid Box Alarm System (MABAS) also participated in the Rapid Intervention Training Program with our staff.

The Fire Department continues our partnership with Community Hospital of Ottawa for EMS Training. Firefighters engaged in 4000 hours of EMS training during the year. Our comprehensive training program gives our firefighter/medics the tools to better serve the residents of Ottawa, providing the best service possible.

REDDICK LIBRARY

The City's Reddick Library continues to be a busy place. In a typical month over 10,000 people visit the library and they use the internet 1,200 times, check out 10,000 items and ask several hundred reference questions. The summer reading program resulted in 441 children reading over 8,000 books. The staff regularly greets people from out of town with information about Ottawa's history and sites, and fills personal and e-mail requests for local history and genealogy information.

Reddick Library is governed by the library board and its staff is under the supervision of Head Librarian Vicki Trupiano. The library board and the recreation board are the only City boards or commissions that have their own taxing authority and own thierbudgets. The cost of providing library services continues to rise and the library board has reviewed fee and fine schedules in order to cover some of those rising costs.

This past year the library hosted musical programs, story hours, after school clubs, schools tours and historical lectures. The library partnered with Brush with History, the Senior Network and IVCC to provide opportunities for education and entertainment to the community. Reddick Library has initiated an international film night, Food for Fines, and partnered with the Book Mouse and WCMY presenting a radio book club which just last week included a telephone interview with a New York Times best selling author. The Lions Club donated an additional $500, at the request of Dr. Jeff Blanco local optometrist, to purchase a collection of descriptive videos for the visually. The staff is currently involved with Youth Service Bureau and IVCC in obtaining a Family Literacy Grant targeting Ottawa's Hispanic residents, our newest library patrons.

GOVERNOR'S HOMETOWN AWARD

For the second time in three years the City was a recipient of a Governor's Hometown Award, this year for the City's magnificent Lincoln-Douglas Debate Memorial Plaza project in Washington Square. This project epitomized the concept of volunteerism and citizen involvement upon which the Governor's Hometown Award is premised. Hundreds of people worked on this project over a period of years, first raising awareness with a Year of Lincoln celebration and then raising over $360,000 in private contributions and over $100,000 in grant monies to erect the most magnificent memorial to any of the seven Great Debates. From the smallest of contributions of pennies from children to gifts of $25,000, to the tens of thousands of dollars in professional services contributed by individuals like Peggy Martyn who designed the plaza and coordinated all of the planning, engineering, plumbing, masonry, paving, electrical, and landscaping - all free of charge.

No one needs a Governor's Hometown award to remind us of the magnificence of the end result, but the award does remind us that the end result would not have existed but for a caring and giving community.

By the way, as my final plug for this project, the bronze plaque recognizing major contributors is now being designed and there is still time for individuals, families and business to forever be memorialized as a sponsor of this project.

CONCLUSION

Let me close by expressing my sincere appreciation to all the people who work for the City, and with the City to make it all happen. Our employees, our supervisors and department heads, our appointed officials and the four Commissioners with which I have the privilege to serve all take their jobs seriously. A special thanks to the staff and leadership of the Chamber organization which has helped to forge the great relationship that the City has with the business community. I thank Representative Frank Mautino and Senator Pat Welch who are always ready to go to bat for the City, and to Congressman Weller and his staff for their support at the federal level. And of course, thanks to the hundreds and hundreds of people who generously give of their time and talent to make Ottawa a better place. We are all ordinary people working together to accomplish extraordinary things, and though we may have different titles and stations in life, we all share in a common heritage of self-
government, and we all share in probably the most precious of titles - that of "citizen."

Thank you for your attention and I would be happy to answer a few questions.