State of the City Speech by Anna Peterson,

Mayor of Salem, Feb 9, 2011

Good afternoon and thank you all for attending

the luncheon today. I want to especially thank
Salem Area chamber of Commerce, Salem City
Club and Salem Rotary for sponsoring the State
of the City address each year. This is a fine
example of organizations partnering to produce
a major event. Today the public is the recipient
of your shared resources, and if my speech is
any good, they will be enlightened a bit about
their city as well.

I would like to start with some introductions and

sincere thank yous. First, I want to recognize
and thank my husband Edwin Peterson for his
love and support, and especially for swearing
me in.

These days, I am spending less time with Edwin,

and more time with members of the Salem City
Council. I am impressed with the dedication and
time that the Council members devote to their
duties and their commitment to making Salem
the best it can possibly be. We have a
wonderful council and we are really enjoying
building our team and working together.
Ward 1 – Chuck Bennett, who is also our
Council President.

Ward 2 – Laura Tesler

Ward 3 – Brad Nanke

Ward 4 – Rich Clausen

Ward 5 – Diana Dickey

Ward 6 – Sheryl Thomas

Ward 7 – Bob Cannon

Ward 8 – Dan Clem

One of the busiest city departments is Municipal

Court. I want to thank Judge Jane Aiken for her
tireless commitment to dispensing fair justice
and partnering with community agencies to
address the needs of people who come before
her.

We have hard working, committed department

heads.
As the second largest city in Oregon, we depend
on their highly professional skills and desire to
provide the best customer service every day. I’d
like to introduce each of them:

City Manager Linda Norris

Deputy City Manager Sean O’Day

City Attorney Randall Tosh

Public Works Director Peter Fernandez

Police Chief Gerry Moore

Fire Chief Mike Niblock

Community Service Director Vickie Woods

Urban Development Interim Director John Wales

Information Technology Director Ida Salazar

Human Resources Director Connie Munnell

Administrative Services Director Tony Mounts

I also want to thank the employees that work for

the City of Salem. They care deeply about their
community, and are at the forefront of dealing
with the everyday tasks that are part of a large
city operation. I want to especially say thank
you to them for working so well with staff,
volunteers, and Council, to reach our city goals.
They also recognize the needs in our
community, and have regularly sponsored food
drives, toy collections, and volunteer in our
community outside of work hours. Thank you for
all you do to make Salem Shine.

At the core of our community are over 5,000

volunteers that really make our city zing.
Whether they serve in the Library, or at Center
50+, the Police Dept, or are in the parks, historic
properties, neighborhoods or the airport, or in
dozens of other volunteer positions, they are
vital to the smooth-running operations at City
Hall and across our community. And special
thanks go to the members of our Boards,
Commissions and Task Forces. They are a vital
conduit between the community and City Hall,
as they help us develop policies, programs and
solve problems, every day.

Many people have asked me why I wanted to be

Mayor of Salem, and especially why now—with
budget reductions and the uncertain economic
outlook, and the downturn across our
community.
My answer is: What better time to be able to
bring our residents together, maximize our
resources, and build upon the many
accomplishments of recent years. And besides,
I tell them, we are not broke; we are not broken;
and we continue to move forward.

Take for example the accomplishments Salem

has made in the last year in the area of
technology and energy efficiency:

Our beautiful and much-used Salem Conference

Center achieved LEED certification,. Many
groups look for this type of designation when
booking conferences and conventions, so this
designation enhances marketing and use. Over
80,000 people attended events here in 2010,
many of them coming into city, staying in our
hotels and motels, and spending money in our
restaurants and stores. Solar panels are being
installed on the roof and the Conference Center
should begin to draw some of its energy from
the panels by March.

In November, West Coast Bank, Salem Electric,

Portland General Electric, and the Energy Trust
of Oregon partnered with the City of Salem to
launch a new pilot loan program for Salem
commercial building owners. Commercial
business owners and tenants are eligible to
receive incentives of up to 50 % for lighting
improvements made to their building or
business, and access to a low-interest loan for
other project costs. Lighting improvements
typically result in a payback period of between 3
– 4 years, but with the added incentives offered
through this program, the payback is closer to 1
– 2 years.

Technology is enhancing public safety in Salem

as well. The Photo Red Light program
continues to reduce red light violations and
improve traffic safety at 25th and Mission and
Center and Commercial. CrimeReports.com, is
a new web-based crime reporting mapping
system that aids in identifying areas of criminal
activity. New Radar Reader Boards are being
placed on streets where speeding is a problem.
And user-friendly reporting of losses is now
available through the on-line, 24 hr a day
reporting system.

Salem Fire Department secured a $450,000

grant to purchase dual-band portable radios to
communicate with other agencies more quickly
and thus coordinate responses to emergencies
and disasters.
Salem’s Information Technology Department
developed an application so that emergency
responders can make wiser, quicker decisions to
deploy personnel and equipment, saving time
and maximizing resources.

Our first responders – the Fire Department, the

Police Department, and our partner Rural Metro
Ambulance do an outstanding job of providing
emergency response and keeping our
community safe. I nave ridden along with all
three and encourage everyone here to do the
same. You will see first hand how they work
collaboratively and cooperatively to get the job
done. Our thanks to them for keeping Salem
safe for everyone.

A major public safety issue is the number of

people with mental illness or addiction issues
that our law enforcement officers are dealing
with because there are insufficient local
resources. I have talked with our Police Chief,
our Marion County Sheriff, and our local
legislators and county commissioners about the
need for local, community-based facilities and
services to meet their needs. Arresting them
and taking them into the criminal justice system
is not the answer. The answers will not be
found in jail cells or on prison wards. It will be
found in local settings when we provide the
services they so badly need.

The Building and Safety Division improved its

website to allow applicants better access to
service options and information regarding permit
status, land use application and licensing.

Young people are often the first to use new

technologies, and they have not been forgotten
as the City embraced new ways. The Library
secured a grant for a “Creation Station” in the
new teen library to provide audio, video and
desktop publishing products for educational and
personal uses. Our Community Development
department has created the City’s first and
largest Facebook page for the Youth
Development & Prevention section. The page
has more than 1,200 friends – mostly teenagers
who volunteer and perform community service
work.

Technology and energy saving systems have

not been limited to city functions. In May of
2010, the Teton Non-Profit Housing Corporation
in partnership with the Salem Housing Authority
secured $730,000 of HUD grant funding to
provide a comprehensive Green Retrofit to fund
critical improvements, recapitalize reserves,
implement green operations and maintenance
practices at this 50-unit senior housing property.
Careful use of public funds is not limited to what
goes on inside city facilities or in city-run
programs. Social service agencies play a vital
role in our community, and the City has
recognized this by providing funds for some of
the most basic of human needs.

We have used general funds and Community

Development Block Grants to provide social
services to 23,551 individuals. The city also
assisted Marion Polk Food Share and the
Salvation Army as they provided 160,037 meals
in 2010. Other Block Grant funds to Marion Polk
Food Share helped add a community and
training kitchen to their current facility.

At the West Salem Clinic, Block Grant funds in

2009 and 2010 paid for building modifications to
add 17 new exam rooms which resulted in the
hiring 3 additional doctors and allowing many
new patients access to services.

Now let’s talk about the budget, and why I say

we are not broke:

Careful budgeting and streamlining and

reductions in 2009 and 2010 have left the City of
Salem in much better financial situation than
many cities and states across our nation. We
have not spent down reserves and jeopardized
our bond rating, and we have not continued to
spend as if money would be found in a bottom
drawer or hidden ledger.

I would be less than honest if I told you that

Salem can continue to provide all the services
and programs the public would like to have. As
we begin the budgeting process, the Citizen
Budget Committee will carefully review the City
Manager’s recommendations and listen closely
to public testimony to determine the mix of
programs and services they hold most
important, and what they can do without.

We invite you to attend the budget hearings,

where public testimony is always encouraged,
and to e-mail city councilors, other members of
the Budget Committee or myself, to make your
thoughts and wishes known.

Here are some of the things we have done in

the last year to save money:

The Municipal Court began two new programs to

improve collection of fines and assessments.
The city’s fleet operations are saving money by
doing more preventative maintenance and using
new technology to reduce employee hours

Employees installed energy monitoring

equipment and reduced over 1 million kilowatt
hours of energy use in the Civic Center

Center 50+ reduced the burden on the City’s

General Fund by leveraging the city’s $479,000
to provide nearly $2 million dollars worth of
programs, services, and volunteer hours.

Increased recycling has reduced City garbage

by approximately 20%.

Property insurance coverage changes and

renegotiated workers’ comp and liability
premiums have saved the City more than
$125,000 .

Beyond crafting a balanced budget, reducing

costs across city departments and programs, we
are mindful that union contracts must be
carefully negotiated to keep wages, benefits and
pensions at levels that recognize today’s tight
economy and take into account the future effect
of today’s decisions.
One of the things that distinguish Salem is the
tremendous participation and contribution by the
public to enhance city services and programs.
This last year, the Salem Police Foundation was
created by citizens wanting to increase public
safety programs. As their first project, they
assisted with manpower and financing to
redevelop and rebuild a Police K 9 training
obstacle course.

The Library received nearly $350,000 in private

donations to complete the renovation of a new
Teen Library slated to open on March 18, 2011.
And the Center 50+ has collaborated with other
agencies, the business community and
volunteers to offer nearly 200 quality programs
and services to over 800 daily attendees.

Saving money, and mining community

relationships and resources are important steps,
but job development and private sector
investment within Salem are needed in order to
turn our economy around.

There have been some bright spots in the City’s

efforts to add jobs. Home Depot built its
465,000 square foot Rapid Deployment
Distribution Center at the Mill Creek Corporate
Center, providing family wage construction jobs
and has opened with 300 permanent
employees. We must continue to work with the
State of Oregon and SEDCOR to market the Mill
Creek Corporate Center.

Two long-time Salem businesses expanded and

added jobs: Garmin Technical Information
Center has 250 new jobs, and Kettle Foods’
latest expansion added 16 new positions.. New
small businesses have opened in Salem and
others have moved to new locations, making
capital improvements and adding employees. I
want to say a very sincere “Thanks” to the
Salem Chamber for its enthusiastic ribbon
cuttings and support to new and existing
businesses.

But this down economy demands that we do

more. We must be more targeted in our
marketing, and more aggressive in ferreting out
businesses who are actively looking today for
new locations.

Through our partnerships with the Salem Area

Chamber of Commerce, SEDCOR, Chemeketa,
and Business Oregon, we must identify
businesses compatible with our location and
resources, and others that currently supply
existing businesses. I have already started
planning with the Chamber and SEDCOR on
these new ideas, and will be involving new
people from businesses and industries and
commercial Realtors who will help bring fresh
ideas and connections to our efforts.

Our goal will be to attract additional jobs to the

Mill Creek site, the High Tech and Renewable
Energy Park and other shovel ready sites and
properties across the city. More nationally
recognized retailers are needed in our
downtown, and they are on our recruitment list
as well. We are unusual in that we have four
major department stores downtown – Kohl’s,
Macy’s, Nordstrom and JC Penney, who just
completed a major refurbishing of their store.
Connected by sky bridges, they are important
anchors to our vibrant downtown, and we need
to keep them in our downtown.

One of our most exciting opportunities is in the area

of renewable energy and sustainability. Not only has
the City of Salem undertaken numerous sustainable
practices, but our new High Technology and
Renewable Energy Center attracted a leader in
sustainable energy—Sanyo Solar. Its addition to our
list of manufacturing firms is fueling interest and
partnerships that will make Salem a leader in
attracting and working with companies that develop
solar, wind, biomass, electric vehicles, and geothermal
resources. Land is “ready to go” at this site.
Thanks to Portland General Electric for installing a
new transformer station in the Center to meet the
needs of future businesses. With over 200 new jobs,
SANYO is just the beginning of job growth as other
firms look at this site for their operations.
The University of Oregon recently selected Salem for
their Sustainable Cities Initiative to develop plans and
designs for city facilities, transportation systems,
infrastructure and community development. Over
500 students are working with city staff and
community and development leaders to envision and
design new projects. Their work will help Salem
leverage existing resources to move projects forward
based on well-researched designs and plans.

With shovel-ready land at the Mill Creek Corporate

Center, and the High Technology and Renewable
Energy Center, and land and buildings ready at the
McGilchrist Urban Renewable site, and several other
large tracts of available serviced land, now is an
excellent time to invest in Salem.

Commercial air service is still a priority. City

Manager Linda Norris and I met recently with
principals from the firm that assists Salem with those
efforts The recent 4,000 square foot expansion of the
airport terminal and FAA approval for the upcoming
runway extension project are crucial infrastructure
projects that position the City to attract commercial
air service. We discussed several carriers, and in
particular one airline that will be particularly
compatible with Salem travel patterns.

The third bridge across the Willamette – the bridge to

West Salem – will benefit all Salem residents. It will
not help just West Salem residents, but will enable
people and goods traveling through Salem to reach
their destinations more smoothly and with less
congestion on both sides of the Willamette.
The down economy has taken its toll on some of our
downtown properties, both condos and retail spaces,
and vacancies are a concern to customers and local
businesses. And who would have ever guessed that
10 years after its opening, the Courthouse Square
would again be behind chain link fencing while
Marion County and the Cherriots Transit District
grapple with structural problems rendering the
building and parking structure unusable. You can
rest assured that Salem will be working with Marion
County and the Transit District for the best and
highest use of that important downtown block.

The Downtown Riverfront Urban Renewal Advisory

Board and the Urban Development Department has
been working on a comprehensive Strategy that
identifies specific areas for investment of Urban
Renewal dollars and a plan for action in each area of
the District that will attract private investors. From
improved use of the 2nd floor in downtown buildings
to revitalization of business and residential areas
north of downtown and along Front Street, the City
will be ready when investment dollars and the private
sector are ready to continue improvements to
downtown and the area north of Marion Street.
The Boise property owners are working to attract the
type of business, hotel, recreational and residential
activity they have envisioned, but it will take time
before these plans become reality.

But lest you think that nothing positive has happened

in our community this last year, I wanted to be sure
to include the latest news about parks in Salem. We
have completed construction of Bryan Johnston Park
– doesn’t that name bring back a lot of wonderful
memories—and the dedication and ribbon cutting are
scheduled for spring. The City completed the re-
planting at the Minto-Brown Island floodplain as part
of the natural habitat restoration project.
We look forward to the day that the stream that flows
under the Boise site will be uncovered, when a
pedestrian walkway connects from there into
Riverfront Park, and across a pedestrian and bicycle
bridge to Minto Brown Island Park.
The City has closed on the 50-acre Battlecreek
property in south Salem. Street and initial storm
water improvements are scheduled there for
construction in 2012. Look forward to having a new
park in that very active area of town, within a short
driving or walking distance of many neighborhoods
and families looking for recreational opportunities in
that end of town.

Salem is a community of natural resources second to

none in the state. We have an abundance of open and
green spaces, waterways for habitat and recreation,
and parks with a wide variety of sports facilities and
spaces for community activities. With the conversion
in 2008 of the Union Street Railroad Bridge into a
bicycle and pedestrian connection from Riverfront
Park to Wallace Marine Park, we began to realize the
dream of linking Minto Brown Island Park, Riverfront
Park and Wallace Marine Park into one of the largest
connected open spaces for public recreation in the
state.
Recreation and community use of these spaces
creates jobs, and increases the value of adjacent
properties. Plans are underway to form a Natural
Resources and Sustainability Advisory Group that
will work with me and the City of Salem to develop
long range plans to care for and use our natural
resources--our streams, our open spaces, and our
parks-- to their fullest recreational, habitat and
economic potential.

Another valuable job creator in Salem are the arts

and cultural heritage facilities and activities. By
attending the world-class musical and dance
performances, lectures, art exhibits, historical sites,
and fairs, festivals and events held right here in Salem,
we learn about our past, connect to the wide variety
of cultures and religions here today, and enjoy the
artistic talents of people of all ages. The dollars spent
at these venues add to our economy and the
paychecks spent here every day. Congratulations to
Salem Art Fair for being recognized as one of the top
20 art fairs in the United States! The Oregon Artists
Series Foundation continues to mount exhibits in the
Conference Center, adding greatly to its shine. The
newly reconstituted Salem Public Arts Commission
will bring new art to public spaces all other our city.

Our growing population has turned Salem into an

international city, with people moving here from all
over the world. They are working, living and
participating in our community, and have become an
excellent resource as we learn more about cultures,
religions, and traditions from other lands. These
international contacts are fueling businesses and
helping Salem to attract businesses and trade from
around the world. I am already planning with the
Salem Multicultural Institute, the NAACP, The Latino
Business Alliance, and other organizations and
individuals to create an advisory group on multi-
cultural and ethnic issues and opportunities.
I would be remiss if I did not celebrate our distinction
as Oregon’s state capital. Easy access to elected
officials, the legislature, state agencies, appellate
courts and other state facilities is an advantage that
makes Salem a great location for any business or
organization that does business with the State of
Oregon.
I have visited with every member of our legislative
delegation, as well as people from DAS, DHS, and
toured the new State Hospital. I pledged to work
closely with each of them, and our Marion County
and Polk County Commissioners to strengthen our
city and region.

In closing, I would again like to thank Salem City

Club, Salem Rotary, and the Salem Area Chamber of
Commerce. Our Rotary Club members have a
tradition of raising funds for our good works projects
by “ringing the bell” to announce good news, family
accomplishments, or when our photo appears in the
local paper. Well, I am prepared today with my
check for the Salem Rotary Foundation, and I’d like
to present it to our President Dawn Bostwick.