1. December 8, 2011

2. The Economy of Bisbee Bisbee ended the fiscal year in the black ($1,901) Local sales tax collections highest ever at $1.8 million Bed Tax down 14% in the last year, 27% over two years State Shared Revenues reduced by $330,000 Total employment reduced by 6 people this year Total employment reduced by 20 people in five years GF expenditures reduced 6% to match revenues Audit report for FY 2010-11 is clean, no findings

3. The Economy of Bisbee How do we do it? Street Department down to 2 employees from 8 Police Department down two positions Fire Department down two positions Increased use of Inmate Labor No General Increases in Salaries for 4 years Purchases over $100 require City Manager approval

4. The Economy of Bisbee Comparison of Visitor Center Guests, Bed Tax, and TPT over 12 years

5. The Economy of Bisbee Comparison of State Sales Tax, HURF Tax and State Income Tax over 12 years

6. Finance/Budget The 2010-11 Fiscal Year ended with revenues $1,900 above expenditures. We had projected that the FY 11 budget would end the year balanced (using $378,460 in reserves), so this is very good news. In short, we were able to preserve all of our reserve funds by watching our spending carefully in a deep recession. The 2011-12 Budget projects that we will end the year using $210,033 in reserves to balance the General Fund. The economy this year appears very similar to that of last year, and state shared revenues have been further reduced. This budget reduces expenditures by 5% from last year. Every year of the last four, Ive wondered how were going to reduce expenditures any further. Yet, we manage to do it.

7. Building Activity Repertory Theatre being transformed into Bisbee Royale, an entertainment venue ($92,940) Western Bank purchased the Old Bisbee branch of Bank of America and is renovating the building ($90k) Stock Exchange former restaurant being renovated for use as a steak house ($86k) Montessori School on Naco Hwy ($23k) Two Solar Collector installations are pending, permits at no charge ($228k)

8. Building Activity Fiber Optics! Cableone has begun installing a fiber optic backbone. Starting in Warren, glass fiber will eventually be installed throughout the city to enhance capability and capacity for communications, data transfer and entertainment. This is an investment of $1.5 million.

9. Local First Arizona In February of 2011, Local First Arizona received a $70,000 grant from the Arizona Commerce Authority to work on strategic planning for increasing in-state travel to rural communities, increasing spending at locally owned businesses in rural areas, and for technical training for local business owners that includes social media, destination marketing, and search engine optimization.

10. Local First Arizona Local First held two workshops, one on increasing search engine optimization for Bisbee businesses so they can be found on-line easily by visitors who are either planning a trip to Bisbee, or who are already in Bisbee, and are looking on their smart phone for a great restaurant, a place to stay, or a place to see a show. The second workshop was on social media marketing, and was designed to help the Bisbee business community think collaboratively in terms of marketing their town as a destination. A total of 28 business owners attended the workshops.

11. Local First Arizona Local First has identified the Bisbee After 5 event as the perfect event to bring people from Tucson, and also that Facebook is the perfect avenue to make that happen. Local First recommended to the Bisbee business community that they pool their resources to buy Facebook ads that are directly marketing Bisbee After 5 to 35 - 55 year-old Tucsonans who have identified travel and the arts as interests. Local First also recommended that the Discover Bisbee website should have a mobile component so it can be easily viewed and navigated from a smart phone.

12. Warren Renaissance Arizona Street Rehabilitation was recently completed providing new pavement, additional parking and streetscape. Warren Historical Survey is now complete, which will place Warren on the National Register of Historic Places. Business opportunities will improve, along with tax reductions for many homeowners.

13. Economic Development Strategy Bisbee–The High Desert Gem. The facets of this unique gem include its diverse people, historic character, arts community, natural environment, and ideal climate. The community promotes quality business development and financial sustainability by creatively utilizing its proximity to Mexico, technology, economic partnerships, and educational institutions to achieve community prosperity. Vision Statement Bisbee Strategic Plan for Community Economic Development August 1999

14. Economic Development Strategy While the City of Bisbee has survived in the post-mining era by promoting tourism, special events and the arts, it is time to develop a new strategy. Over the last year, we have brainstormed with local resources, businesses and economic development professionals to develop new ideas that will lift the city out of the current plateau over the next 10 years. Our strategy has three prongs;

15. Economic Development Strategy 1. TOURISM With Bed Tax revenues maxed-out and fluctuations in the travel economy, it is time to consider increasing the Bed Tax rate. Bisbee is at the low end of the scale. Regional tourism investment should be increased by all of the partners in the CCTC. Local business should invest with the City in additional signage, lighting, and pedestrian access. The Campbell Yard is a huge opportunity to revive the surface tour experience and mining heritage tourism. $1 in advertising = $180 in travel spending and $14.95 in state and local taxes.

16. Economic Development Strategy 2. REGIONAL BUSINESS INCUBATOR Space is needed to help develop business start-ups. Potential locations include City Hall, the Airport, and Bisbee Middle School. Industry sectors can include Tourism, Homeland Security, Mining, Retail, e-Commerce, Health Care. Services provided can include office space, clerical, office equipment, and access to funding sources. Sponsors could be the City, U of A, Cochise College, SEAGO, Local First, and local Financial Institutions.

17. Economic Development Strategy 3. AIRPORT INDUSTRIAL PARK The City owns the Airport and 80 undeveloped acres north of Swan Road, a great location for industry. The Union Pacific is currently negotiating the purchase of the inactive Benson rail line to Bisbee. The EDA will match investments at 50% for projects that increase global competitiveness and create jobs. SEAGO, among others, is working on improving access to commerce through the NACO Port of Entry. Bisbee is located in a unique position to bring all of this together creating jobs and opportunity for the region.

18. The economic opportunities that await us are numerous. Local First The Warren Renaissance Tourism Enhancements Regional Business Incubator Airport Industrial Park The key to success in all of this is PUBLIC/PRIVATE PARTNERSHIP. With your help, this is all possible!

19. We hope you enjoyed todays program, and that you will participate in building Bisbees economic future. The Mayor, City Council and Staff wish you and yours a Merry Christmas and a Happy New Year!

20. www.cityofbisbee.com www.discoverbisbee.com www.queenminetour.com William J. Jack Porter, Mayor Stephen J. Pauken, City Manager 118 Arizona Street Bisbee, AZ 85603 (520) 432-6000