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Good Afternoon and thank you for joining me. This is my 4 th State of the City address and my 4 th year as Mayor. I am just about to complete my first year as the City's 1 st full time Mayor. One of my ongoing challenges is the balancing of the day-to-day crises and demands with the absolute necessity to present the vision and prepare for the future. It's quite a balancing act and it never ends. And don't get me wrong, I love this City and I love this job!
So, how is the City doing? How can we have our cake and eat it too? How do we balance all the demands and continue to move our agenda forward to keep our City happy and healthy?
One of the biggest challenges in a speech like this is covering everything that is happening throughout the City. There is so much happening I could never capture it all in the short time we have together. If I don't mention your project, your company, your neighborhood or your name, please know that everything that you are doing to help our City is appreciated.
Your Mayor loves you and no one is being slighted or ignored. I have to get you back to work and keep our economy moving.
Sacramento was founded at the confluence of the Sacramento and American Rivers. The history of the City of Sacramento shows that we started as the hub of the region and in many ways we are still the hub of the region. We are the transportation hub.
The transcontinental railroad cemented Sacramento as the transportation hub and regional commuter rail service continues it.
We are the hub of government. We are the financial and business hub. We are the education hub. We are the entertainment hub. We are the healthcare hub. We like being the hub and we are good at it.
I want to talk about our progress and challenges in the context of these hubs. Let's start with:
Maintaining and improving our transportation system is critical and passage of Measure A in November 2004 is crucial. We have about 2 months to finalize the ballot language. Compromise is needed for us to be successful or everyone gets as big a slice of zero as they want. Work is needed to resolve issues surrounding:
Other polling shows that Measure A has strong support if it includes the right parts:
A mix of transportation options and livable neighborhoods is the goal here. The Big conflict is that people want congestion relief and better air quality, but they don't want to encourage more people to live here. Polling shows strong support for some growth management measures. And it may be the critical piece to reach the magic number of 66 and 2/3 %
Outside of the issue of Measure A, Sacramento reached a milestone recently in that we appear to have finally reached consensus on the location of a new intermodal transportation center in the Downtown Railyard. The new center will incorporate the historic depot building and while we face the challenge of moving this huge, historic structure, we have experience in such matters. After all, we are the known as "The City on the Move," and I know we can do it!
In the beginning of Sacramento's history, the city became the transportation hub because of the confluence of the Sacramento and American Rivers. Today, our waterfront is the center of a new energy. Instead of turning our backs to the River, or using it for commercial purposes only. We now see it as a natural resource and even as a place to call home. The Sacramento River waterfront is gladly shared with our neighbors, the City of West Sacramento. The regional cooperation and work both of our cities have already completed and will continue to do is a great investment and will leave an incredible asset for residents and tourists alike. West Sacramento is developing new, exciting housing opportunities on and next to the waterfront. These efforts will continue to transform both urban centers into a hub of business and great urban lifestyles.
This Friday night, the Pacific Coast League Champion Sacramento Rivercats open their baseball season. The Rivercats at Raley Field have helped bring people to the waterfront and has allowed many old and new Sacramentans the opportunity to discover the joy of walking across the Tower Bridge. It is fun and I encourage you to try it!
Speaking of fun on the river and season openers, last Friday, Mayor Cabaldon and I enjoyed the first River Otter Water Taxi ride of the year. Thanks again to the Metro Chamber for their continued support of the River Otter Water Taxi. We are working closely with West Sacramento to widen the walkways of the Tower Bridge without damaging the historical integrity of this icon of our communities.
Speaking of progress on our jointly - planned waterfront, and speaking of icons, the recently completed water intake structure on the Sacramento side of the river is a real gem. It's a great design by Lionakis Beaumont and CH2M Hill, allowing more access to the river, while providing the city with water to match our growing needs. If you have not been over to visit it, you really should go and see it.
And, in Old Sacramento a new foundation has been established to improve historical programs for visitors. Stay tuned for more special events along the waterfront.
But let's not forget the importance and the beauty and importance of the American River. While the County is working through severe budget challenges, I support the effort to establish a regional park district as a way to save the American River Parkway and other natural areas and fairly share the costs of operation and maintenance.
As the State Capitol, county seat and the largest city by far in the region, we are both the government and financial center of the region. As all of you know, Sacramento is experiencing a major building boom, commercial, retail and residential construction. Like private business, the city is making major investments to ensure continued, quality services to our residents. The new city buildings will triple the square footage of city owned buildings, but reduce our costs in the long term. We are investing in a new 911 telecommunications center, and 3 new fire stations. We have maintained funding for our deferred maintenance to ensure that infrastructure is kept up. While not a sexy topic for discussion, this is a capital investment that makes sense for our taxpayers and is the fiscally prudent thing to do. We are saving money through operational efficiencies like the relocation and expansion of corporation yards in both north and south areas of the City. I want to thank City Manager Bob Thomas and the staff of the city for all of their efforts in managing the city's budget and maintaining our services during tough financial times.
The City of Sacramento is the 10 th largest employer in the region. Two weeks ago, the City was awarded the Best Government Agency/ Public Sector Employer (nominated by our employees), at the SWEL Awards by the Sacramento Area Human Resource Association. An example of this continued growth of Sacramento's status as both a government and finance hub can be seen under construction at the new PERS office building, expanding their presence on P, Q and R Streets. The city is also expanding our commitment to greener, more energy efficient buildings. I challenge you to join us in this resource, energy and cost saving effort. I believe Sacramento should be one of the top cities in the nation demonstrating that we can save our natural resources as well as money. We can do this without sacrificing the quality of design and construction. The Joe Serna, Jr. CalEPA Building across from City Hall on 10 th and I Streets is a great example of what can be done. This building, a private-public project with the state and city and a private developer, is a great demonstration of the huge progress in designing and developing energy efficient buildings. A private sector effort by DPR Construction, located in South Natomas, has created one of the most energy efficient buildings in the City.
In past years I have shared my frustrations (and many of yours!) over our City's permit process. I am pleased to say that the Development Oversight Commission that I appointed is coming to City Council next week to present their annual report and recommendations aimed at streamlining the city's permit process. I am pleased with this program and want to publicly thank them for a very difficult task. With their support, the City Council established an infill coordinator and adopted an infill strategy to encourage and simplify the process for infill projects.
Yes, Sacramento is the region's education hub. There are close to 200,000 active college students in our region. That is a lot of economic energy if we can bring it together. They are attending public and private institutions. They are in residence, they are commuters and they are extended, adult learners. The number jumps higher if you include students attending technical schools, specialized professional training and the number of adults working hard to complete high school diploma programs. We are a City of learners and we have an educated workforce.
Many changes are underway. CSUS's new President, Dr. Alexander Gonzalez has a new plan for the campus including new student housing on campus and is looking for new ways to connect the university to the City and our community. UC Davis School of Medicine is expanding its presence in Sacramento to include academic training, in addition to the clinical and research work being done at the University's Medical Center. The UC system has opened the doors of their system wide Center for California Government and Policy on K Street. The first class of the program has just started. This is a program for all UC system students that will ultimately include residential program, with the assistance of CADA, allowing those students to live, intern and attend classes downtown.
The University of Sacramento, a new, private university is opening its doors for graduate and continuing education students ultimately will also have a full, four-year residential program.
The Los Rios Community College program continues to develop innovative programs for new students and for adult learners looking to change careers and find new opportunities.
I need to stop here and commend the Board of Directors of the Metro Chamber for electing Brice Harris as your president this year. Obviously the link between education and business is alive and well. Thank you for serving Brice.
Los Rios nursing program at Sacramento City College, in partnership with Sutter Health, has developed a nursing program in South Natomas. This innovative program moves students seamlessly from community college into a four-year college and into nursing positions throughout our community, in all hospitals and medical offices (and its tuition free for qualified nursing students).
As you can see, our hub as the center for healthcare in Northern California is closely tied to our position as the hub of education.
Private sector housing developers see new opportunities to provide mixed-use developments close to our growing community college campuses as well as those of the CSU and UC programs.
And, speaking of education, we're also looking to renew our Library Assessment soon to keep our libraries open and well stocked. I want to take a moment to introduce one of my interns who was just named Outstanding Senior for this year's College of Business Administration at CSUS, Eve Richter; any job offers in the house?
Sacramento has always been the region's entertainment hub. Sacramento's a great place for a date with our wonderful restaurants and nightlife. Art Second Saturdays remains one of the biggest nights for people walking and enjoying the cultural life of our City. Not just in Downtown, but in North Sacramento and Midtown. Just last Saturday, La Raza Galleria opened the doors to their new home on R Street.
Do the Arts really matter to our economy? Here are just three examples:
The Sacramento Ballet and the Sacramento Opera combined, brought a total of 100,000 people downtown, last year. Last summer, the California Musical Theater Company added 15 performances in the new theater and they sold 132,677 tickets, for a total of 64 performances. This year, they will increase to 72 performances and they anticipate selling 144,000 tickets. Last year, 1,017,000 people went to events in Memorial Auditorium, the Convention Center Theater and the Convention Center. These numbers don't include the dozens of other theater companies, orchestras, concerts and events. Do you think any of these people are eating out? Do you think any of these people are staying later for a drink or coffee and desert?
These small examples demonstrate that the arts in our City mean real numbers and real business. The arts are an important part of Downtown's economy. The newly constructed California Musical Theater Company performance space, the renovated Sacramento Theater Company, the proposed new B Street theater in Midtown and a host of smaller performing venues are all fueling the growth of Sacramento as destination for an evening and a weekend.
Sacramento's position as the regional entertainment hub plays an important role in our economy. According to the State of California, in 2003, Sacramento welcomed 15.4 million visitors, up from 13.5 million in 2002. Those visitors contributed more than $2 billion into our local economy.
Sacramento, as a tourist destination is becoming nationally recognized in many national publications including The New York Times, Los Angeles Times and Washington Post. This month alone, Sunset Magazine features Sacramento as a great weekend vacation destination. Also, the latest issue of Disney's Family Life magazine called Sacramento one of the Best Places for Vacation Spots for Families. Yesterday, Partners for Livable Communities, a national organization, named the Sacramento Region as one of the 5 most livable regions in the country.
One of our greatest assets is The Crocker Art Museum, which is in the middle of a huge capital campaign that will grow the museum. The museum adds to the quality of life for our city and region and will also be an asset to the Sacramento Riverfront, especially if we can accomplish some of the I-5 decking dream.
I'd be remiss not to mention the future of K Street - our ground zero for downtown revitalization. Sacramento's K Street has also historically been an important entertainment center for our city and region. We used to have dozens of movie theaters. Today we have 4 screens, plus seven in the Downtown Plaza. We are trying to add more theaters to maximize the number of people on the street at night and on weekends. We will continue working on this the best way to add more visitors and to help find ways to support the Crest and the Tower Theaters. They're both beautiful, they're favorites and they need our collected support to stay open and be successful. But the new Century theaters at 10 th and K and 7 th and K would really help add to the vitality of K Street.
We anticipate a million extra people, staying downtown after work and coming downtown on weekends if we add the theaters. These million visitors would use parking that is under-utilized at nights and on weekends, and would be there to eat out and shop downtown. The added people on the streets make living downtown more attractive and exciting for future residents that will want to live on J, K and L Streets, in the center of this growing entertainment hub.
Where there is tremendous growth in housing, the demand throughout our region is driving up prices. Property tax revenue in Sacramento County alone is anticipated to increase by 11 percent this year. There is new housing in North Natomas, Del Paso Heights, Meadowview and lots of new infill housing throughout the city. While the demand has created economic opportunities for some, the cost of homeownership is up significantly and affordability is down. Housing affordability has always been our region's strength. It has helped us bring new jobs to our City and region and has served as a stabilizing influence, resulting in an economically diverse city. We don't want to lose this. One of the tools we are using to help ensure affordable housing within new neighborhoods is the inclusionary housing ordinance, and it is working very well. (The policy requires 15% affordable units . . .) Just last month all SACOG cities and counties agreed to achieve 10% goals in affordable housing.
We really need to think about whether we're building for the future or not. Look around the room and read the polls and studies. What more people in the future will want is more compact housing close to activities. Someplace like a condo or an apartment in downtown Sacramento. Every new project in downtown has had a waiting list and the supply is far behind the demand. We're actually beyond trying to convince builders or potential residents of the value of downtown housing. 95814 has become a credible zip code for residents and not just the hub of business and government. But the majority of homes being built are for a narrow market, and are really popular because of the migration from the Bay Area and the foothills. This is not just a Sacramento phenomenon. The Great Valley Center poll shows that 63% of residents throughout the Central Valley support more, dense housing near transit and 68% support housing that is considered infill development.
So what about our future? This is the time, not next year, not in five years, not next decade, where we must define the future of our city and our region. Our biggest challenges are financial and environmental.
The region's air quality is a challenge and one we cannot afford to ignore. In a poll by the Great Valley Center, air quality and traffic congestion consistently are the top two issues of concern by Central Valley residents from Merced to Redding. In our own region, The Greater Sacramento Metropolitan area has been declared by the U.S. EPA as a community that is out of compliance with the federal Clean Air Act. If the health affects on your children, on senior citizens and yes, all of us, doesn't concern you, the draconian loss of federal funding we all face certainly will. Vehicles mostly cause our air quality problems. It's of our own choosing. Traffic congestion definitely hurts our ability to clean up our air. It may also seal off our opportunity to compete for federal dollars if we do not make progress in meeting federal requirements.
Many of you in this room, representing business interests, neighborhood, community organizations and local governments have invested a tremendous amount of time in the SACOG Blueprint effort. On Friday, April 30, a sold-out group of 1,400 people will help define some major parts of the vision of our future as a region during the SACOG/ Valley Vision Tall Order Forum. If we are going to define the edges of our cities and our County, we have got to do this now. And once the community has spoken and chosen a scenario they prefer, it will be up to the elected city and county officials to honor and implement that choice. Measure A and the City's new General Plan are 2 other opportunities that will define our future.
The other immediate challenge we have is financial. We have huge financial challenges to get through, all of which affect our futures. The County is struggling with a massive budget shortfall, fueled by the continuing state financial problems. The impacts to businesses and residents throughout our region will be huge when the service cuts become a reality.
One way we can take some control back in protecting local government resources is to support the statewide initiative that will hopefully be qualified for the November ballot. This initiative, sponsored by the League of California Cities, the County Supervisors Association and the California Special Districts Association simply says that if the state wants to balance their budgets by stealing local revenue it must first ask the voters for their approval. The signatures are in and we are awaiting word that we have qualified the initiative. I will be asking for your help in supporting and voting on this initiative. Business and local government has to balance their books every year; the state should have to do the same.
I don't need to tell you that the state of the city, and more important, the way Sacramentans feel about their city, is strong and positive. We are challenged with continuing the strong belief and feelings we all have that our neighborhoods, our City and our region is the place that we choose to call home.
Neighborhood Watch is a crime prevention program designed for Sacramento's residential community. The program is operated by neighbors and sponsored by the Sacramento Police Department. The program organizes groups of neighbors with a series of informative meetings to teach you proven steps to reduce your vulnerability to crime.
Fighting crime is every citizen's responsibility. It is important for you to develop good safety habits and practice crime prevention. By learning how criminals select targets and what tactics will discourage them, you can help reduce crime in your neighborhood.
When the community and the police work together as a team, the opportunity for crime to occur is greatly reduced.
