1. The 10 th Annual Bethlehem Mayors Breakfast Bethlehem Business Council Present and

2. Thanks to our table sponsors

3. City of Bethlehem, Pennsylvania 2007 State of the City Honorable John B. Callahan, Mayor Comfort Suites Hotel March 6, 2007

5. 2007 State of the City Bethlehem, Pennsylvania Real Estate Assessed Valuations Overall drop of 78% from 1994 to 2006

6. 2007 State of the City Bethlehem, Pennsylvania Real Estate Assessed Valuations

7. 2007 State of the City Bethlehem, Pennsylvania City Total Debt 2007 Reduction of Total Debt: $34,792,777

8. 2007 State of the City Bethlehem, Pennsylvania Debt Service 50% Reduction 61% Reduction

9. 2007 State of the City Bethlehem, Pennsylvania Borrowing Base and Rating Current underlying Standard & Poors Rating: A- City rating with insurance: AAA Borrowing base as of 5/1/2006 Non-electoral Borrowing Capacity Remaining: $114,239,310 Lease Rental & Non-electoral Borrowing Capacity: $159,935,034

10. 2007 State of the City Bethlehem, Pennsylvania Basic Service Improvements Public Safety EMS Largest Emergency Medical Services force ever – 24 strong $355,000 of new EMS equipment 2 new ambulances @ $150,000 each

11. 2007 State of the City Bethlehem, Pennsylvania Basic Service Improvements Public Safety Fire Formation of a Quick Response Service (QRS) – fire department personnel will act as first responders Addition of one Lieutenant Fire Inspector $419,000 of new equipment $330,000 engine $45,000 fire utility truck

12. 2007 State of the City Bethlehem, Pennsylvania Basic Service Improvements Public Safety Police Largest police force in the history of the City – 150 officers $332,000 police equipment 6 police cruisers / 1 utility vehicle / AEDs New Trunking Radio System - $5.1M Junior Police Academy Emergency Response Team (ERT) Customer Satisfaction Surveys CSI Unit

13. Continuous Improvement – The Business of Good Government CI is an application of tools that empower the people to look at their jobs in a new way, to ensure that each and every day they are adding value instead of just performing tasks. 2007 State of the City Bethlehem, Pennsylvania

14. One of the smallest non-uniformed workforces in the Citys history Debt reduction strategy for capital spending: borrowing less than what is paid back Aggressive collection of delinquent taxes – 99% collection rate Purchase of Street Lights from PPL - $8.3 Million savings Traffic signal energy savings plan - $461,000 savings 1 st Strategic Water & Sewer Plan completed Completed meter by-pass initiative which resulted in $200,000 in revenue Central Processing Live Scan Video Arraignment CALEA Certification Implement Geographical Information Systems Implement eGov-Interactive Government Services CI in the City Efficiencies and Cost Savings for Sustainability

15. CI in the City Efficiencies and Cost Savings for Sustainability

16. CI in the City Efficiencies and Cost Savings for Sustainability

17. CI in the City Efficiencies and Cost Savings for Sustainability

18. CI in the City Efficiencies and Cost Savings for Sustainability

19. 2007 State of the City Bethlehem, Pennsylvania Basic Service Improvements The City of Bethlehem is the overall safest city in the State of Pennsylvania, of cities with 30,000+ population The homicide rate is lowest of all cities The sex offenses are lowest of all cities The robbery rate is lowest of all cities The property crime is lowest of all cities The arson rate is lowest of all cities The drug violation rate is lower than 11 of the cities The assault rate is lower than 9 of the cities Total Investment in Public Safety of $5.5M Pennsylvania Cities 30,000+ Population PhiladelphiaHarrisburg PittsburghLancaster AllentownReading AltoonaScranton BethlehemWilkes-Barre ChesterYork Erie According to data collected by the Pennsylvania Commission on Crime and Delinquency (PCCD) Uniform Crime Statistics (UCR)

20. Bethlehem Works Southside Bethlehem Central Business District Steel Stax Performance Center National Museum of Industrial History

21. 2007 State of the City Bethlehem, Pennsylvania Bethlehem Works Casino Southside Bethlehem Central Business District

23. Morning Call Editorial Board Bethlehem officials should prioritize: Cover casinos impact, then cut taxes. Mayor Callahan would prefer to first replenish city reserves and cushion the impact of gambling. In other words, first determine the citys needs for additional police, firefighters and other emergency services; road construction and related services; and the casinos impact on public works, parks and property departments. Then, and only then, would Bethlehem be on a sound financial footing and able to able to stabilize taxes on a longer-term basis. If that happens, a bonus would be improving the citys bond rating, thus saving millions of dollars in interest payments in the future. 2007 State of the City Bethlehem, Pennsylvania

24. Morning Call Editorial Board Bethlehem officials should prioritize: Cover casinos impact, then cut taxes. Mayor Callahan and council should pin down the costs that Bethlehem will incur when the casino arrives. With that number in hand, future tax cuts can be contemplated, but they dont need to be the priority. Remember, the whole reason for Pennsylvania legalizing slot machines is to lower school taxes. 2007 State of the City Bethlehem, Pennsylvania

25. Transition to the Future Casino Host Fees Must: Stabilize city finances Invest in public safety and human services to ensure no negative affect from gaming Invest in our existing business districts and marketing of all of Bethlehem Return a financial benefit to all of our taxpayers 2007 State of the City Bethlehem, Pennsylvania

26. Community Development Priorities Elm Street Plan

27. City Bethlehem, Pennsylvania South Bethlehem Greenway Project Investment $ 5,000,000 DCNR Request Grants Committed $ 800,000 $ 1,100,000 NorCo Open Space Request $ 1,100,000

28. 2007 State of the City Bethlehem, Pennsylvania Major Development Projects: City Programs 501-502 E. 4 th St. Before After

29. 2007 State of the City Bethlehem, Pennsylvania Major Development Projects: Mixed Use Martin Tower 800 luxury condos and town homes North St. Tower 70 luxury condos Hyatt Hotel Restaurant

30. 2007 State of the City Bethlehem, Pennsylvania

31. Major Development Projects This conservative account does not include Majestics Bethlehem Commerce Center, LVIP @ Bethlehem Commerce Center or Bethlehem Works which would add $2.2 billion and 19,000 jobs based on current proposal projections.