Affidavit regarding fiscal concerns of the City

August 24, 2008

I, Kimberley Bauer, hereby declare as follows:

1. I have reviewed the tape recordings of the May 27, 2008, City of St. Helens Budget Review Committee meeting when that Committee reviewed the proposed FY2009 City budget.

2. In listening to those tapes, I heard one or more members of the Committee argue against adoption of the proposed budget as presented, on the grounds that it could cause the City serious financial difficulties.

3. In a City Administrative Staff Meeting on May 28, 2008, City Finance Director Marilyn Peterson stated that the City faces serious financial difficulties, depletion of the City's contingency funds, and the possibility of bankruptcy by June 2010.

I hereby declare that the statements made above are true to the best of my knowledge and belief, and that they are made for use as evidence in court and are subject to the penalty for perjury.

Kimberley Bauer