1. Bisbee Economic Focus December 9, 2010

2. In 1935 at the height of the Great Depression, renowned artist Raymond Sanderson created a stunning art deco sculpture dedicated to the “virile men, the copper miners”. Produced under the Works Project Administration, this monument survives today as a unique icon to Bisbee and a significant piece of American Art.

3. 2010 is ending with the City of Bisbee in good economic condition despite the fact that the last twelve months were the most challenging in recent memory. Local revenues are tracking with our projections for the current year, but we projected that revenues would be almost $0.5 million lower than the previous year. City Council and Staff are adjusting to lower revenues by holding back on spending wherever possible. We recently received the final audit of FY 2009-10 from the independent auditor, and we are pleased to report that our financial condition is sound, even though our reserves were depleted by about $29,000. This is good, compared to other cities in Arizona and nationwide. We predicted a year ago that 2010 would be the most challenging time since the Great Depression. It turns out that we were right.

4. How do we do it?  Street Department personnel cut in half  Eliminated Building Maintenance Department  Police Department down one position  Fleet Maintenance outsourced to Cochise County and City of Sierra Vista  No General Increases in Salaries for 3 years  No Purchases over $100 without City Manager Approval

5.  Ace Hardware now open!  CCAH Facility virtually complete  Warren Survey underway  Old Bisbee Historic District expanded  Queen Mine continues success  Visitor Center projects 60k visitors, 150 bus tours and 8 million hits on www.discoverbisbee.com www.discoverbisbee.com  EECDBG received for new windows and doors at City Hall Photos: Bob Mesquit, Steve Pauken

6.  Arizona Street project has finally started! Construction will start early in 2011 - $2.7 million  Bakerville Phase III paving now underway – CDBG project - $300k  Glass Sidewalk replacement at the Fair Building recently funded by ADOT - $100k  Hwy 92 and Naco Hwy will be improved with new signals and sidewalks with a state enhancement grant from ADOT - $1 million  Six streets re-surfaced this year, three streets crack-sealed  Recycling program expanded and department restructured Photos: Steve Pauken, John Charley

7. Building Permits20102009 New Construction 24 12 Remodel7382 Residential Value, all permits$ 1,558,554$ 1,381,729 Commercial Value, all permits$ 2,317,334$ 1,629,571 Construction activity is up slightly with that of a year ago. Commercial activity was lead by the Ace Hardware Store. As of 11/30/10

8. The 2009-10 Fiscal Year ended with revenues about $29,000 below expenditures. We had projected that the FY 10 budget would end the year balanced (using $328k in reserves), so all things considered, this is good news. In short, we were able to preserve nearly all of our reserve funds by watching our spending carefully in a deep recession. The 2010-11 Budget projects that we will end the year using about $378,000 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 $400k from last year. Every year of the last three, I’ve wondered how we’re going to reduce expenditures any further. Yet, we manage to do it.

9. “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

10. The City of Bisbee has survived in the post- mining era using a strategy of fostering Tourism, promoting the Arts and hosting a wide variety of Special Events. By and large, this strategy has worked. The City of Bisbee has invested heavily in this strategy, and leveraged its assets to forge cooperative partnerships with Cochise County, AOT and travel writers to further enhance our success.

11. While this strategy has been successful, the current economic conditions prove that a more diverse economy would lessen the adverse effects we are now experiencing. Our current strategy is considered to be mature, and future economic gains in our current economy will be less than we have experienced in prior years.

12. However, it would be a mistake to abandon our current strategy in any way. The City of Bisbee intends to continue investing in our current economic strategy well into the future. In order to move up to the next level of economic success, the City must embark on an additional strategy to enhance and diversify our economy.

13. Assets to build on: Guidelines from the Old Bisbee and San Jose Charettes Recently completed Airport Master Plan Current General Plan Freeport McMoRan Community Partnership Plan Vast land holdings south of Warren that include the Airport and other city properties Developable land along Naco Hwy & Hwy 92 The SUN!

14. Community Partners: City of Bisbee Chamber of Commerce Existing Business Community Freeport McMoRan (CPP) SEAGO (EDA) BUSD Cochise Community College Cochise County (E.D. Steering Comm.) SEADG Aviation Community Health Care Providers Local and Regional Developers

15. Beginning in 2011, the City of Bisbee will embark on the creation of a new Economic Development Strategy. Lead by the City Manager and Coordinated by the Community Development Department, this strategic planning will include all of our community assets and partners. This effort will not be easy, nor will it be fast. It is anticipated that the total effort will require the next ten years to totally complete.

16. Everyone in this room, and many others will be asked to participate. If we believe that we can build a diverse, sustainable, and productive future for our community, we will “step up” and get involved. We have nothing to lose, and everything to gain!

17. Photo: Katie Salwei White House Ornament

18. 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