 Hello, my name is Darryl Hofflin, Sheboygan City Administrator. Welcome to my first State of the City address. I appreciate the opportunity to spend the next 15 minutes with you presenting a recap of the 2017 activities and 2018 goals. My presentation will be organized to reinforce the city's 2017 adopted strategic plan. As part of the plan, the city has a mission statement which is, the City of Sheboygan is dedicated to providing residents, the business community and visitors with fiscally responsible municipal services in an effective and responsive manner to meet the needs of our diverse community. The city also has a vision statement. The City of Sheboygan will be a family-oriented and prosperous community with a wide variety of housing, business, cultural and recreational opportunities in safe and attractive neighborhoods. As part of the 2017 adopted strategic plan, six focus areas were approved. They are quality of life, infrastructure and public facilities, economic development, neighborhood revitalization, governing and fiscal management and last communication. The first of the six focus areas is quality of life. 2017 accomplished projects include replacement of the Skate Park in Kiwanis Park, an age-friendly community designation by the ARP and the World Health Organization, RFID inventory system at the Mead Library, no fire-related deaths for our citizens, value of fire loss in 2017 was down 65% from 1.2 million in 2016 to 400,000 in 2017. The addition of another school resource officer, the transition by the attorney's office, clerk's office and mayor's office of 50% of their staff who turned over due to retirements and that loss of institutional knowledge. In 2017, the community experienced a 33% drop from 2013 levels of property crimes. In 2017, the community experienced a further 20% decrease in violent crime rates over the past two years or a 10% decrease since 2013. 2018 goals for quality of life in the community of Shabuigan include a comprehensive review of the fire department by a consultant, repair fire station number one, ordering a replacement fire engine, the police department will focus on traffic safety and accident reduction, the clerk's office will implement new voting machines and the senior activity center will create and conduct a survey targeting 50 or older aged residents and developing a marketing campaign to increase senior awareness of center offerings. The second focus area is infrastructure and public facilities. 2017 accomplishments include IT's five-year plan including priority staffing levels, refurbishment of the 8th Street Bridge, additional street reconstruction improvements include a 150% increase in lineal feet for street reconstruction or street pavement overlays since 2014. The city has turned the corner in its pavement quality as measured by a PASER rating system. In fact, over the past year, the rating has increased by 3%. Another component of the city's infrastructure is tree planting, both street trees and park planting of trees. Almost a 2,000% increase in 2017 over prior year levels occurred. This becomes even more of a priority for the city as we deal with the Emerald Ash Board devastation. For 2018 goals in infrastructure and public facilities, it includes a replacement of the wastewater treatment plant's electrical system including a related construction of a building, coordinating with on the Chabuaganay's replacement field lighting system and coordinating with Lakeshore United Soccer Club on the Boots and Sports Complex and last, the start of phase one city hall renovation with completion in 2019. The third focus area is economic development. 2017 accomplishments include completing the City Green Plaza in the downtown, kicking off of the Innovation District with Indiana Avenue property purchases and finalization of a revitalization plant for this corridor, annexation of Town of Wilson Land in anticipation of a future golf course, purchase and annexation of land for a new business park adjacent I-43, completing a downtown parking study with no significant deficiencies identified, completion of a federal compliance audit for shoreline metro with no findings. In Chabuagan, housing demand is the strongest since 2009. Based upon 2016 residential property sale prices, a 6% increase overall in the city of Chabuagan occurred over the 2015 rates. In 2016, this results in a $95 million increase in overall residential property values. However, this follows a six-year value decrease of 16% or a $353 million loss to our community for residential property values. The city's effort to grow its tax base in redevelopment areas continues to be successful. Over the past five years, the value of the city's 11-tid districts increased by 23%. It will further increase due to construction in 2017 and 2018 of over 490 additional apartments in the downtown or Chabuagan-squared business district. 2018 goals for economic development include construction of the I-43 business park, support and redevelopment of the former tannery or Coakley property just north of Indiana Avenue, completion of a 2018 to 2022 transportation development plan for shoreline metro, discuss the creation of an agreement with Chabuagan area school district regarding student passes, and pursuing an increase in the city's ISO rating from 2 to 1, which will result in lower property insurance premiums for businesses and industries. The fourth focus area is neighborhood revitalization. One of the city's strategic plans is the concerted efforts to focus resources on strengthening and improving neighborhoods. City and community efforts include two additional neighborhood beat officers assigned both to the north and south side. City staff partnering with neighborhood volunteers to create additional associations seven to date. In partnership with Habitat for Humanity, a rock the block project, and in addition to hiring of a code enforcement officer in 2015, a second part-time code enforcement officer was added in 2017. As a result of hiring these code enforcement officers, the number of enforcement actions has increased 293% over the past four years. The city has achieved an 80% compliance rate just in 2017. 2018 goals for neighborhood revitalization include adding of four additional neighborhoods for assistance by the city. Those neighborhoods are Sheridan Park, Swift, Gateway, and Erie Hill. The fifth focus area is governing and fiscal management. In 2017, the city received two awards by national organizations. This reflects positively on the professionalism of your city staff. Other 2017 accomplishments include all non-represented employees are now on a merit-based, merit-pay-based performance program. Also revised compensation plan is driven by market comparisons to retain and recruit staff. Goal setting and monitoring of the city's fund balance continues to be critical. The minimum goal approved by the Common Council is 25% in part to retain the city's excellent credit rating. The city's end of 2017 fund balance is anticipated to be double that goal or 53%. Managing the city's debt is also critical. The city's outstanding debt continues to be stable. In comparison to its debt goal to be no more than 60% of its statutory debt capacity, the city is only at 27%. In light of the city's effective debt management and improving local economy, the city has earned a solid AA2 rating. This past week, Moody's credit service reaffirmed the water utilities credit rating at AA2. Congratulations to Joe Trueblood, superintendent of the Shaboygan Water Utility and his staff. 2018 goals for governing and fiscal management include revising the city's performance evaluation forms, creating a succession planning for all city staff, changing how city employees earn their vacation time. Other 2018 goals include hiring a replacement for retiring finance director Nancy Bus, submitting for review for national consideration the city's annual financial audit statement and updating the strategic plan 2019 and 2020 action items. The sixth and final focus area for the city is communication. In 2016 and 2017, three new initiatives were implemented to improve communication with Shaboygan businesses and residents, citizen engagement program, monthly newsletter, and annual community survey. The city continues to increase its interaction with its residents and businesses via social media outlets. Consequently, the number of followers our user grows. 2018 goals in the area of communication include review of our existing city logo and possible revision of it and our brand and creating a strategic communication plan. I would like to thank you for spending your time with me today as I discuss the state of the city address. If you have any questions regarding the information that you've heard, please feel free to give me a call. Thank you.