Thanks also to the Reverend Elaine Caldbeck, from the Episcopal Church of the Ascension. She’s one of the newest members of the clergy here in Middletown, and I was honored to participate in her installation in January. The many houses of worship are part of the fabric of our community and they provide many resources to Middletown. Thank you Elaine; and thank you to the members of Ascension who are here this evening.

Last year marked the end of a decade, one that brought many opportunities as well as many challenges. As we look forward, we must focus on the opportunities that will propel Middletown into the next decade and beyond. Last year in the state of the city, we discussed some of the same financial challenges that we are dealing with today: foreclosures, an emerging recession that has continued to linger, and continued high unemployment. Last year I stated that “there isn’t anything wrong with Middletown, that can’t be fixed by what is right with Middletown”. That rings true today as well. This city has been presented challenges and we have risen to address them.

As we begin, I am pleased to recognize my fellow city council members. We have a great group of individuals who are committed to the betterment of Middletown. Your city council composition has changed; this year we welcomed three new council members, Mr. A. J. Smith, Mr. Josh Laubach and Mr. Dan Picard. I look forward to continuing our work to improve Middletown and welcome their fresh perspectives. With our other members, at-large council members Mr. Bill Becker and current Vice Mayor Anita Jones, and first ward councilman Mr. Jim Armbruster, your city council is working to make this great city of ours, greater. We wish Mr. Armbruster a speedy recovery from his surgery. Lastly, thanks go to former members Leslie Ford, David Schiavone, and Tony Marconi we appreciate their service to the city.

Ms. Gilleland, our city manager and her staff work hard each day to make the city a better place to live, work and raise a family. I appreciate their commitment to the city and its citizens. Their work is difficult and challenging at times, but they are working to serve the citizens of Middletown and improve our city. Betsy Parr, our Clerk of Council deserves special recognition. Her efforts to keep us organized and keep the information flowing is a challenging task. She’s been recently recognized as a nominee for “Clerk of the Year” in Ohio. It’s evident that her peers across the state recognize her performance.

As I stated last year, council and I have pledged to gather citizen input, from our conversations with council last year to town hall meetings this year. We are available through letters, email, phone calls and citizen comments. In addition, council has committed itself to ongoing forums and dialogues to engage with citizens and hear your thoughts. Ms. Scott-Jones will conduct a town hall meeting this Saturday at the Chamber of Commerce building on Central Avenue from 11-1, Mr. Laubach is conducting his first town hall meeting on April 13 from 5:30 to 7 at the Senior Citizens Center, and other dialogues will continue through the year.

The efforts of our subcommittees help us as a council to better understand the issues and allow for additional input, questions and discussions. The subcommittees include:

The Diversity Affairs subcommittee of Council comprised of Mr. Smith and I will continue the work to raise awareness and promote diversity within the city. Last year, an expanded group of citizens worked to implement the Diversity Dialogue on Race Relations. These dialogues help us share experiences, appreciate all perspectives and gain a greater understanding to improve our city.

Ms. Scott Jones and I serve along with Mr. Becker, the chair of the Finance subcommittee. We have met regularly with city finance staff throughout 2009 and will continue into this year. We stayed abreast of our financial position, and remained diligent in working through challenging financial issues.

The housing subcommittee is lead by Mr. Picard; Ms. Scott Jones and I are also members. We will continue to focus on code enforcement, and oversee our various programs which are supported by community development block grant, neighborhood stabilization programs, and other funding sources. These funds provide critical services for those in need and the housing issues in the community.

The Public Safety subcommittee includes Mr. Armbruster, Mr. Smith and Ms. Scott-Jones. They will be actively working with the Divisions of Police and Fire to determine the best way to deliver public safety services during these times of reduced revenue. It is important that we understand the ongoing issues with public safety and consider the best way to continue delivering this primary service to our community.

As you can see from the activities of the subcommittees, your council stays quite engaged: confronting the issues facing the city and ensuring that our tax dollars are spent wisely.

Council and staff members recently dedicated a Saturday in January to our annual retreat. At the retreat, we reviewed progress on Agenda 2009, and reflected on what should be addressed in 2010. We selected the three top priorities for 2010: Managing our Finances, maintaining our public safety, and improving our streets. We will use a variety of initiatives to achieve these overarching goals, while looking for opportunities to improve Middletown in all areas.

The city’s contracts with the police and fire unions are subject to binding arbitration, pursuant to state laws. These contracts comprise nearly 75% of our general fund. Council can work to make cuts, but these cuts are limited to the discretionary portion of the budget. Moreover, we’ve made a commitment to keep safety and emergency services in line with previous levels. As one could imagine, balancing a budget when only 25% of the pie can shrink creates a difficult task when revenues decrease and we must “tighten the belt”. Like many private sector organizations, the city has reduced staff. We must continue to live within our means—the result is that our city government must do more, with less: stretching dollars and maximizing efficiencies.

Financially, we ended the year with income tax revenues in the general fund down about 1.8 million dollars from the previous year to just $16.1 million—-received from income taxes, a level we have not seen in over ten years. Faced with increasing costs, especially in our public safety forces, in 2009 our expenditures exceeded revenues by nearly $700,000. That is the stark reality of what faces us headed into 2010. Planning for the 2010 budget included using a portion of the reserves so that over the next three years our reserve balance will dip to 15% of annual expenditures. Several difficult decisions were made to eliminate 7 city employee positions. These were not easy, nor could they be avoided. We had to reduce these public service positions so that we could focus our efforts on one of our priorities, public safety.

Regarding Public Safety, we are fortunate and grateful to have a professional fire fighting force and a top notch police division. These services come at a price. The public safety levy, first passed in 2007, funded about 1.9 million, or about 10% of the $20 million expended for police and fire. The balance is funded by the general fund and charges for service. Our public safety subcommittee is charged with overseeing these critical services and ensuring that our tax dollars are well utilized. As I noted earlier, the commitment to public safety is significant, over 75% of the general fund budget is dedicated to delivery of these core services.

Street improvement is a priority for the city. Deteriorating streets are a symptom, rather than a cause of our challenges. A city’s infrastructure does reflect the economic conditions of the area. Prosperity is reflected in roads, sidewalks and streetscapes. But we cannot make the mistake of believing that smooth pavement is the shortcut to prosperity. We need to fill our homes with homeowners, and stores with retailers, and commercial buildings with businesses. If we realize our economic development goals, the funds will be available to help repave the streets.

Like many mid-western cities, we must deal with the constant freeze-thaw cycles which create potholes which require constant maintenance. In 1985 a dedicated capital improvement portion of the income tax was redirected to support the overall general fund. Since then we have not had a dedicated funding source for street improvements. Fortunately this year, we will be spending 8 million on road improvements. However these are short term solutions funded more by federal stimulus and state matching grants coming to us, rather than our local dollars. The repaving of University Boulevard, Sutphin Avenue, and Lefferson Road will provide improvements and much needed resurfacing. We must understand that funding for local improvements must come from local dollars. I challenge council and citizens to re-evaluate how we pay for these improvements. There is never a good time for an additional tax, but as the 2008 study reported, we have a great need for a dedicated revenue source to protect and preserve our streets. We’ve allocated funding to do some limited pothole, striping and sealing repairs to the streets, but these are truly just band-aid approaches. We must do more, and do it quickly. Repaved roads come with a price tag. If smoother streets are a priority for residents, we should give them the opportunity to vote on it.

In 2009, the Charter Review Committee had the important task of recommending changes to the city charter, our city’s “constitution”. The significant change we heard from members of that committee involved dissolving the ward system and shrinking the number of council representatives. The committee voted overwhelmingly to eliminate the ward system, and wanted to put the issue before the voters. The voters of Middletown sent a message: dissolve the wards. The message is clear: we’re NOT four wards; we’re ONE Middletown. We will solve our problems together as one community.

2010 could be a year of continued uncertainty. The state and national economies have experienced the worst recession in a generation. As a city we have seen our tax revenues decline while many in this city are still in need. However, out of crisis, the strong and prepared are the ones who survive. We endure to be better tomorrow, and we as a city must commit ourselves to that…making it better for tomorrow.

In preparation for making things better for tomorrow, our community must continue to cultivate our youth and remain devoted to their development. Things are much different in our schools than they were 10, 20 or 30 years ago. Schools and a quality education are the foundations for tomorrow. As a community we must work together with our school system to encourage and support our youth, dedicate ourselves to providing a better education and keep our youth engaged. The partnerships that have been established by the city can only go so far. As we look to the future, we must explore other ways to partner and support our youth. One proven way is to recognize key developmental assets in our children, and to ensure that each child fully achieves their potential. Our youth deserve to be engaged in the process, to have their input respected and to have their success celebrated!

There are key external asset groups that center around: Support, Empowerment, Boundaries and Expectations, and the Constructive use of time. There is a group of concerned citizens that has come together to spread the word on how beneficial this effort is. I would like to take a few moments and present some of those key assets:

Support includes: Family support, where family life provides high levels of support and love; along with, Positive family communication, where a young person is comfortable and willing to seek advice from their parent; Other adult relationships, where a young individual receives support from three or more non-parent adults; Caring neighborhoods which allow young persons experience caring neighbors; a Caring school climate, and lastly, but very important, parent involvement in schooling.

Empowerment includes, The community valuing youth, where the young individuals perceive that the adults in the community value youth; Youth as resources, where young people are given useful roles in the community; Service to others, when young persons serve in the community one hour or more per week and lastly, safety when our young people feel safe at home, at school and in the neighborhood.

With Boundaries and Expectations there are: Family, School and neighborhood boundaries where there are clear rules, consequences and monitoring, along with Adult role models, positive peer influence and high expectations set by parents and teachers.

Constructive use of time includes: Creative activities—three or more hours a week in music, theater or other arts; Youth programs—three or more hours a week in sports, clubs or organizations at school or in the community; religious community—where a young person spends one or more hours a week in activities in a religious institution, and lastly, unstructured time at home—not out and about, with nothing to do.

The development of these assets is something the entire community can embrace with just a little bit of time and effort, and very little money. There will be more information shared on these 40 assets in the coming months. I’m honored to work on this project with a committed group of citizens from the community and schools, including our youngest council member, Mr. Smith. The continued partnership of the city and the schools will help ensure our mutual success. The fates of the city and school district are intertwined; working together will help improve the city and the schools for a better tomorrow for all of us. Good schools are critical in promoting Middletown as a great place to live and raise a family. We’re working on a joint meeting of City Council and the School Board to explore ways to partner and leverage many of the great things we have in this community to fully support and develop our youth. I encourage everyone to get involved. The greater the number of developmental assets that each child has, the better they are positioned for success. The more our youth are positioned for success, the better our city will be. As our city improves, we all benefit and we will all succeed together. Together we will find every opportunity to celebrate our civic pride and unity.

As a community in 2009, we celebrated the Football team’s entry into the playoffs for the first time in nearly 20 years…We recognized the efforts of our young men with pep rallies, yard signs and bumper stickers. It was exciting to share in their successes, both on the field and off. It is also exciting to see the Madison High School basketball teams doing so well. And what a great win for the ladies today and their appearance in the State Championship game! Just as important, we should celebrate achievement in the classroom, and what would be a better forum than this to acknowledge three Middletown High School Seniors that are successful, and are recognized in their achievements in their Government class:

Angelee Holbrook: Girls Varsity Volleyball player, outstanding student and effort in American Government. Hopes to attend Columbus Art Institute. She’s called “a quiet leader” and is “very respectful and exemplifies what being a “Middie” is all about.”

Dylan Foley: Dylan Foley plays varsity soccer and volleyball. He is president of his class and vice-president of National Honor Society. Dylan is also a member of the Middletown speech and debate team where he qualified for both the state and national tournaments. After graduating this May he plans to attend the United States Air Force Academy where he will major in History. He has received congressional nominations from both Representative John Boehner and Senator George Voinovich. Upon graduating from the academy Dylan hopes to attend flight school and serve a career as an officer in the United States Air Force.

Tamika Tompoulidis: Tamika plays varsity tennis and ran track. Tamika was president of her class both freshman and sophomore year as well as being the public relations secretary for Student Government and Spanish Club. She is a four year state qualifier on the Forensics Speech team at the high school as well. She has participated in numerous organizations including National Honor Society, was a Buckeye Girls State delegate, and attended the National Youth Leadership Forum on National Security in Washington D.C. After graduation she plans on attending the University of Kentucky and major in Communication Studies.

Thanks go their parents and families for sharing them with us this evening. Also, many thanks to their teachers….

Ms. Angela Bogenschutz is a graduate of Heidelberg College with a major in History, Social Studies and Spanish. She currently teaches AP US History and AP Government and Politics at Middletown High School. And Mr. Ray Banks a Social Studies teacher in the Middletown City School District for 15 years. He graduated from Miami University, and has a masters from Nova Southeastern University.

Neither could be here this evening due to previous commitments. I wanted to thank them for their work in the education of our youth. The students success reflects the best in our community.

Last year included several successes for Middletown…we officially opened the PayChex facility and welcomed the Lieutenant Governor to the ribbon cutting; we joined Quaker Chemical as they completed their multimillion dollar expansion. Through the challenging economic conditions the city has nearly completed its new front door, improving the interchange at state route 122 and I-75 as well as an improved North Breiel Boulevard. Orange barrels will again bloom in Middletown this spring as we plan for the improvements to University Boulevard Lefferson Road and Sutphin Avenue. Many other opportunities abound…and we are positioned well to seize upon them. We must continue to focus on efforts to improve our city, so that when the time is right, we are ready to go….

Last year and into this year, City Council conducted meetings as the Middletown Housing Agency with oversight of the Section 8 or the housing choice voucher program. The improved governance of this program will continue as we implement our plans to balance the program within the support the city can provide. Restoring our socio-economic balance is critical to positioning our city to succeed in the future. It has become quite evident through the increased scrutiny that the city cannot support the current volume of subsidized housing. We must do our fair share for those in need, however, there must be checks and balances. The separation of the administration and the housing quality inspections and the tenant background checks is one way to ensure that we are doing what is best for the whole community. There will be additional challenges to work through this, but Council is committed to improving our balance.

With the recognition of our duty to provide compassion to the disadvantaged, if Middletown is to realize its Bright Future, then we must appeal to middle and upper class wage earners in the region. We have a lot to offer! The economic reality is that middle and upper class households will support city services, schools and businesses through tax dollars and discretionary income. Therefore, we city and school leaders must ensure that our community is appealing to those groups, and execute policies that will attract more to Middletown: reduction in crime, preservation of neighborhoods and improvement in schools.

There is a place for helping those in need, and the city remains committed to that effort. We recently facilitated a property exchange so that our health center can be expanded and modernized into a new facility. However, we cannot continue to provide ever increasing costly services without restoring our community balance. Components for restoring and maintaining that balance include: Maintaining infrastructure, and as I noted before, we’re doing a small part, a vibrant business community that creates jobs and opportunities, quality housing: we must update our existing neighborhoods, agree to maintain our housing stock to the codes we have in place; focus on reviving commercial areas and working together to achieve quality schools.

A group worked regionally and at the state level to promote Middletown as a stop on the 3C rail. While not immediately successful, this group of volunteers, city staff and council members raised the awareness of Middletown as a key stop as these plans grow and develop. We look forward to seeing this come to fruition as we explore alternative transportation connections to both intra-state and interstate locations. We may not all agree on the best way to fund this, however, there have been many successful rail ventures and what better way to help bring the state together. This is an opportunity that may transform our downtown and the surrounding neighborhoods.

Plans…fail to plan, plan to fail the adage goes…the city has developed key plans to address opportunities at Renaissance West and Downtown. The Downtown plan included aspects of the connections to the rail system, and work will soon begin on new development at the western end of DT Middletown, removing several eyesores and welcoming a new Duncan Oil facility. Other opportunities for DT include a Pendleton Art center, a successful model and enterprise that has worked in Cincinnati and Rising Sun, Indiana. The partnership with Miami University on the Community Building Institute and the efforts of United Way with their Place Matters program are other efforts to improve downtown. Furthermore, we are making strides to address blighted properties. There have been a number of demolitions of abandoned properties, both residential and commercial. This effort, like weeding a garden, takes time, but will improve our city and our neighborhoods.

On the east end, development continues, with the announcement of the expanded Veteran’s Administration facility to be located on Union Road. The growth of the Atrium Medical Center’s heath, education and technology campus will continue to grow. The completion of the interchange work later this year will certainly open up additional opportunities for development in Middletown.

The efforts of the work of the homeowners in the Highlands area should be applauded. Due to the work of several residents who take pride in their community and their neighborhood, the district was designated a historic district. This designation will preserve the neighborhood and ensure that future generations of families will enjoy these unique homes in the heart of Middletown. When residents take pride in their homes, the entire city benefits.

As we look forward into the coming months of 2010, I want to remind everyone of the importance of the census. We’ve had a group of volunteers on the Complete Count Committee, headed up by Mr. Chris Amburgey and Mr. Maurice Maxwell, reminding us that “Middletown Matters”. And indeed everyone does matter. Please take the 10 minutes to answer the 10 questions on the Census form. It will have a lasting impact for the next 10 years. The forms are in the mail. This is an important process not only for the city, but for our state. Our United States Constitution mandates that there is a complete and accurate count of all individuals. I want to offer a special thank you to the dedicated group that has raised awareness and helped to spread the word on the census. I’ve completed my family’s form: I encourage everyone to do so.

I also encourage each of you to step back and see what good things we have here. This past summer we again enjoyed the Broad Street Bash…great music and a great time, and it was open to all! Thanks to the efforts of an energetic group of volunteers from one individual’s idea, 3 years ago a wonderful community event has grown. The Arts Central Foundation’s work with events downtown, including the holiday parade and biannual GotArt walks, helps create interest and renewed spirit in the District. The youth sports programs here in Middletown are phenomenal: Soccer, football, baseball & softball are programs that are run by volunteers and parents.