Working with FEDCO and WTH Engineering we hope to get city utilities on the GIS map this year. We do have water, sanitary sewer and storm water lines computerized but we need to have them formatted for the GIS map.

Finances are a big concern for the city again this year. The city budget has not been approved or acted on as the state does not have assessed values from the county. We are not sure how the state imposed 2% circuit breaker will effect us. The county is thinking they will not have tax statements out on time due to state imposed “trending” for assessed values for real estate. The bottom line is that without a budget to go by and no real good idea as to when taxes will be received it is difficult to do any real planning. Income from investments this past year were over $185,000.00 so you can see how important the ability to plan is in terms of dollars and cents. I trust we will see the tax situation fall into place soon so we can really see where we are going.

One bright spot for the city and citizens is we will have a new fire station and it will not end up on the tax roles for citizens to pay for in years to come. We did accumulate $1,700,000.00 and will be paying cash for the station. Thanks to the efforts of Clerk-Treasurer Carla Smith for guiding us and all departments for keeping a watchful eye on spending so we could put money into the Rainy Day fund. The Community Host fee played a big part in this as over 50% for the funds came from that source.

I am not sure if our next problem in that area is what to do with the old City Hall/Fire Station on East 7^th Street or if it is what to do with all old city records that are kept in that building.

The city has been turned down for the second year in a row for a FEMA grant to help purchase a ladder truck. At first glance you may think the fire trucks are in good condition. They are and they are well maintained but the fact remains several of the trucks are over 30 years old and we need to replace them on a systematic basis. With the cost of a new truck ranging from $200,000.00 to $500,000.00 we just cannot wait until a truck is completely worn out before purchasing a new one. The Board of Works has given Mike Gearhart permission to seriously look into a new ladder truck to determine what we may expect in cost so we can start the planning process.

In the Police Department and in conjunction with the county and 911 we have replaced the old computer system. The training has been completed, bugs worked out and the personnel are now becoming familiar with it so it can be used to its full benefit. One area they are working on in this new computer system is contact information for all businesses in the community so if there is a problem they can determine who to contact for information or to gain access to the building. Information forms are available on the city web-site.

I hope citizens are aware not only the amount of training both Police and Firemen do but also the number of activities and the amount of time they and all city employees spend involved in the community.

The Street Department is an area of real concern. The yard waste program has gone over real well. To good in fact as we spend most of our time on clean-up and yard waste and not enough time maintaining city streets. We need to expand the Street Department garage as we have some equipment that still has to set out in the weather, here again finances or not knowing where we stand is a big part of the problem.

We are making progress in the area of storm water. We have dedicated one crew and vactor truck to cleaning and maintaining storm water lines. We have solved several smaller problems but still have water problems at 9^th and Monroe, on West 11^th street and East 4^th Street. We are looking at East 4^th Street to see how close we are financially to doing any work in that area. The city receives approximately $40,000.00 each year from the state from the Riverboat Casinos and the balance in that account is just over $100,000.00. The City Council has dedicated these funds to storm water management.

The Water Department has completed a study on the water towers serving the city. The water tower on East 4^th Street has been refurbished and painted. It has been determined the water tower downtown should be replaced rather than have extensive required work done to it and the Water Board is in the process of determining the location of the new tower which will be to the South end of Rochester. Installation of remote computerized water meters began this past year and will continue in a systematic manner until all meters are replaced. This has cost saving benefits not only to the Water Department but to the citizens as well as areas of leakage can be determined and repaired before the line breaks completely. It is anticipated there will be a certain amount of water treated, used but not billed for, we want to keep this amount to a minimum and better tracking will allow better management.

We are looking at a flow equalization tank at the Wastewater Treatment Plant to assist with future expansion in the city and we still need to line the aging lines in Manitou Heights and several other areas of Rochester.

The third annual increase in rates just went into effect for both the Water and Wastewater Departments but based on the last financial statements the Board of Works and Water Board have ask H J Umbaugh for their recommendations for another rated increase. They have wages, repairs, utility and insurance to pay just like everyone else. We enjoy some of the lower utility rates in the state and want to keep them that way but we do need to maintain the lines and equipment we have.

The city has continued to be very active in the community. I serve on the board of the Board of the Leadership Academy and we have had a member of the city in every Leadership class. This year we have two members, Carla Smith and Bob Miller, I appreciate the extra time and effort involved of all who have participated. The members of the Leadership Academy have been a very good source for appointments for various commissions and boards for the city and many have really become involved in many areas of the community.

The police and firemen are involved with the schools on a regular basis. Municipal Government Week is observed at the Middle School as a session of the city council is conducted there every year. We are Partners In Education with the Kindergarten Classes and each year I sponsor an “If I Were Mayor” essay contest for the sixth grade classes.

The city is active in the Chamber of Commerce and supportive in any way we can in the Round Barn Festival, Chili Cook-Off and BooFest. We enjoy a good working relationship with the schools, FEDCO, Habitat for Humanity and the Solid Waste District just to name a few.

The Bound Barn Pro Shop at the Mill Creek Golf Course has proven to be a very nice addition to the city not only for individuals who play golf but for visitors to Rochester as well. The Park Board is constructing a new basketball court at Fansler Park at this time

The Lake Manitou Association has had a very interesting year. The dredging has begun and I believe is going reasonably well. The association sponsored a “Tour of Homes” this past summer and I hope this will become an annual event so all not only have the opportunity to view several of the lake homes but also to enjoy the beauty of Lake Manitou if you take advantage of the pontoon boats available in getting to the various homes. I appreciate the association’s efforts in working with the DNR and the closing of the lake due to the Hydrilla plant discovered near the end of last summer.

We are not, and probably never will be a “boom town” but we are constantly moving forward to improve the community. Each year we see new construction in housing and commercial development. Just this year we have seen Mid-West Eye Consultants move into their new place of business and Arborwood Apartments is a very nice addition to the South part of Rochester.

The City of Rochester is all of us working together to make the city a great place to live, work and raise our families. I encourage each and everyone of you to become involved in events of the community weather it be church, social, service clubs or governmental units. I am very proud to serve as mayor of the City of Rochester.

I do thank you for the opportunity to speak today but more importantly thank you for your attendance and interest in the City of Rochester and what is happening in your community.

Mayor Phil Thompson