The City of Sharon and its municipal government have received substantial attention over the last year as it went through the election of a Home Rule Study Commission, and the completion of the Early Intervention Program Report. This attention to the City's financial condition, its management performance and its governmental structure is badly needed. Sharon, like many established cities in Pennsylvania and around the nation, has experienced significant economic decline during the last thirty years and needs a major change in direction. Having completed one year in office and had six months to review the recommendations of the Early Intervention Study, and having just received the recommendation of the Home Rule Study Committee, it is an appropriate time to inform the residents of Sharon and of the Greater Shenango Valley about the State of the City. The following is a summary, which focuses on the recommendations of the City's Early Intervention Program.

1. Sale of Waste Water Treatment Plant and Collection System

By the end of January, I will recommend to Council that it pass enabling legislation to sell the collection system to Aqua subject to resolution of the following questions:

a. Adequacy of Aqua's proposed price and terms.

b. Effect of the change on sewer rates.

c. Availability of future funding from EPA or DEP.

d. P.U.C. approval of the sale

e. Resolution of issues with the USVWPCA.

2. Police Department Management Reform

a. The City has entered into an agreement to use the regional lockup and will no longer use police clerks as dispatchers with these changes improving safety and saving money.

b. The City has agreed to fund half of the School Crossing Guard Program through the end of the current school year and eliminate all future funding. At a cost of $150,000 per year to the taxpayers of Sharon, a complete analysis of this service is necessary.

c. I have designed a new management system under the police department for a more efficient and effective delivery of code enforcement services to achieve improved tracking of cases and faster response and resolution of incidences.

d. Contract negotiations with the F.O.P. in 2007 must provide necessary fringe benefit savings to move its costs more in line with the private sector. Sharing or contracting out police services are some options that must be considered by the city to achieve a cost structure it can afford. My deadline for this decision is June 30, 2007.