Good evening ladies and gentlemen. Once again I am graced with presenting the State of the City to you, our community members. But before I start I'd like to introduce and thank our current council; Joe Sousa, Mayor Pro Tem; Councilman Mike Villalta; Councilman Tom Faria; and Councilwoman Elizabeth Stone. I would also like to personally thank all of our city staff for this past year's efforts on your behalf.</p><p>It is difficult to talk about parts of last year. 2009 will be the year remembered for the financial loss felt within our city walls as an employee walked off with more than $1.7 million of your dollars. 2009 will be the year remembered as one with constant strife between council members. 2009 will be the year the citizens of Los Ba&#241;os had their trust in City Hall tested.</p><p>I will not candy coat last year's events. I will not try to make excuses for a year that shocked all of us by the behaviors presented by your city representatives. I will not make excuses for a year that, in the midst of a national financial crisis, an employee at City Hall helped to make a bad situation worse. These are the facts and while I wish things could have been different, the reality is they happened and we at City Hall are now faced with challenges unlike any others that have graced these walls.</p><p>But in acknowledging these facts, and in telling you, our citizens, that we not only admit to our mistakes but take responsibility, I must also let you know we are aware of the mistrust of our city and have been, and will continue, to take steps to return the trust to you, our people. I look at the actions of this past year in the same light as those that take place behind the walls of our families. I truly think of Los Ba&#241;os as one big family. In this way I know that there are times when life is good, there are those times when the family must hunker down to make ends meet, and there are times when the family must gather together to support one another. Families offer forgiveness when members make mistakes. Families pull together after disasters. And families, event with their internal battles, sooner or later remember what makes them strong, their sense of belonging to one another. This is the hope I have for Los Ba&#241;os. Our trials are not over. The state's budget will continue to haunt our own coffers and our property values have yet to hit bottom. Our staff members are pulling more than their share of weight as we have had to layoff employees and part time personnel and are one again looking at funding cuts. But like a family, we understand that when times get tough we must rely on one another to make it through. We must pull together with teamwork.</p><p>What you, the public, do not get to see, is our staff working together. Perhaps the most betrayed one of their own they have worked diligently to put the city's systems in order. Meetings take place weekly where staff, working as a team, work toward stream lining and clarifying our processes; working with CPAs, for instance Brent Coon, who is the audience and from Vavrinek, Trine and Day Company; our financial processes are being reviewed and improved; our ordinances, many of which are outdated and in some cases contradictory, are being assessed and revamped for the benefit of both the city and you. Our staff members who greet the public have had to bear the scoffs and comments created by one employee's dishonesty, yet they continue to come to work each day with a smile. Our department heads have had to cut budgets to bare minimums, and in many cases cutting programs or projects, but they come to work every day with a smile. Again, like a family, we are willing to sacrifice for the good of the whole.</p><p>Sacrifice. This is a word that today is truly understood by all our city employees and you, the public. As the nation faces financial distress so the lack of funding trickles down to the state, our city, and finally, you. While we could continue to live under an umbrella of gloom and doom, however, our city staff members have chosen instead to understand the sacrifices they must make to continue to provide services to you, our residents, and are continuing to work hard to find funding for special projects that make Los Ba&#241;os home.</p><p>While on a shoe string budget, each department was still able to make many accomplishments in 2009; some where to help increase security within City Hall and in those areas where money is handled, for instance new surveillance cameras in our cash reconciliation work area; others included applying for and receiving grants for everything from business loans in the Redevelopment Agency to road repairs in the Public Works division. While our fire and police departments spent much of their year hoping to get the revision of Measure A passed so we could continue to fund officers in the police and fire departments, they also responded to the daily log of criminals and fire calls. Our police department was also able to rehire a crime analyst for crime statistics and related tracking efforts and increased its volunteer core. Meanwhile, our fire department got fire engine 263 in house and operational in time for the new truck to respond to one of the Office of Emergency Services fires last year. In all, the fire department locally responded to 1,523 calls, 449 of where were fire related. And our department was able to report that fire loss was down in 2009. Now that is something to be happy about.</p><p>Public Works was awarded more than $1.7 million in grants last year, including a Bicycle Transportation grant and two economic stimulus funds for street improvements. In addition, crews have been putting in time installing new water meters that have radio touch reading systems. While they have installed only 5,500 to date, another 6,000 will be retrofitted this year.</p><p>Working with the Redevelopment Agency, Public Works installed new directional signs around town, are helping with an environmental cleanup on Second and G streets, and of course, have been instrumental in seeing the community center construction moves smoothly.</p><p>Even though permits have slowed to a crawl in the Planning Department, 2009 was the year staff were able to devote their time to completing the general plan, updating ordinances to comply with state standards, updating the zoning map to conform with the updated zoning ordinance, helping complete the community outreach and draft 2009 Housing Element and working with the Redevelopment Agency to complete the Rail Corridor Specific Plan.</p><p>The Redevelopment Agency was busy with small business loans, completed an EDA grant to do a feasibility study for a business incubator, and received $2.4 million for the Neighborhood Stabilization Program. To date, more than 11 homes have been purchased by our citizens and more are being looking at every day. We anticipate that RDA will be bale to spend its allocation by the state's deadlines and apply for more funding for fiscal year 2010-2011. The RDA also reported ground breaking of the second Ward Street affordable housing project. This is an 80 unit complex that will be completed in the winter of this year.</p><p>The largest project being undertaken by the city is of course the construction of the community center. Construction is 50 percent completed with the Redevelopment Agency, Public Works and building departments working closely with the project manager, this project will be completed and opened by August. Staff have spent countless hours making small changes that will enhance the center, for instance additional power for anticipated bands in the courtyard area and extra space in the game room. We look forward to having this project completed and are hoping all of you will turn out for the Sept. 17 grand opening.</p><p>While we cannot boast as many success this year as last, and yes, while we still have this cloud of distrust over our heads, staff members at Los Ba&#241;os City Hall, at Public Works, at Parks and Recreation, in our streets department, our fire department and our police department will continue to move forward on behalf of you, our community. We ask that you be patient with us. Many of us are taking on new tasks and learning new systems. Many of us are making sacrifices, both financially and work related, to help this city remain afloat. But all of us have the same belief system, just like families tend to do, and that is in our family and our ability to do our jobs well. We will get through these rough times and we will work with you, our community, to continue to make Los Ba&#241;os the wholesome community it has always been. Again, we look forward to this year as it will mean the completion of the community center and affordable housing in Los Ba&#241;os. We are excited that a new nature center is going in at the Tule Elk Reserve, and we are pleased Los Ba&#241;os has been selected to receive funds for a new state courthouse. We are anxious to see students beginning their first year as Panthers at the new Pacheco High School and we look forward to watching our community continue to move forward during these harsh financial times.</p><p>Even with the county seeing an economic slow down, Los Ba&#241;os was still able to welcome new businesses, such as Petco, Tractor Supply, Rue 21, Famous Footwear, GNC, Game Stop and other such retail businesses; as well as working with a new small manufacturing company that is setting up shop in the G Street industrial area. A glimmer of hope for our future as new sales taxes help our general fund to continue to provide services to you, our constituents.</p><p>We will continue to create programs to assist you, the public; to seek grant funding to alleviate the strain on you, the tax payer, and we will continue to improve our systems. We are determined to bring forth those family values that make a family stand in the light of diversity and not stall, to move forward, and not only survive, but make life better. We hope you will join us in these endeavors as the year progresses. Until then, good night, God bless and God speed.