Item 4D: Resolution Acknowledging Receipt of FY07 CAFR

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Local Economy Eugene is located in western Oregon in the southern Willamette Valley, in close proximity to the Pacific Ocean and the Cascade Mountain Range. Residents and visitors enjoy the mild climate, recreation and fitness opportunities, and the diverse cultural events it has to offer. Interstate 5 connects Eugene to the Portland metropolitan area and Washington state to the north, and California to the south. State highways provide access east to the Cascade Mountains, and the recreational opportunities of eastern Oregon, and to the picturesque coastal towns, state parks, and public beaches to the west. Eugene’s municipal airport is served by five air carriers, linking Eugene to Seattle, Portland, Los Angeles, Denver, Phoenix, Las Vegas, San Francisco, and Salt Lake City. Eugene is the largest city in Lane County and the third largest city in Oregon, representing 44% of the county’s and 4% of the state’s population. The Eugene economy typically follows the trend of the national economy. In FY07 Eugene continued to rebound from the recession of 2001-2002. Employment grew at about 1.9% from the prior year. Approximately 86,700 jobs were located within Eugene in 2006, representing 60% of all jobs in Lane County and 63% of all non-manufacturing jobs. The unemployment rate for city residents was 4.9%; this was about 0.5% below the County and State levels. The City of Eugene’s unemployment rate is typically less than the State and County rates, but greater than the national average. Average Annual Unemployment As a Percent of Labor Force 9 8 7 % 6 5 4 3 19901991199219931994199519961997199819992000200120022003200420052006 EugeneLane CountyOregonU.S. Source: U.S. Dept. of Labor, Bureau of Labor Statistics The two pillars providing stability in Eugene’s economy are its large public sector base and steady population in- migration. County, State, and Federal government agencies are centered in Eugene, as well as the University of Oregon and Lane Community College. The public sector industry does not grow rapidly during periods of economic expansion, but also does not contract as fast when other parts of the economy are sluggish. In-migration is a second stabilizing driver to the local economy. Multiple characteristics play a role in encouraging new residents. The University of Oregon, excellent access to a wide range of recreational opportunities, attractive environmental amenities, mature and diverse arts and cultural offerings, and relative lower cost of living all play a role in encouraging a steady flow of new residents. California represents the largest source of new residents to the area due to Eugene’s proximity to that state. The local unemployment rate has declined since its peak in 2003 and job growth continues at a moderate pace. The steady influx of new residents has helped the economy diversify away from lumber and wood manufacturing. An increased share of employment is in non-manufacturing sectors, such as professional and business services, financial activities, and education and health services. Additionally, the construction industry has benefited from the demand for residential housing and related commercial development. The construction sector will continue to be an economic growth engine in the economy. Several large public and commercial construction projects now underway have offset decreasing demand for residential construction due to rising interest rates. Enrollment at the University of Oregon has remained stable at about 20,400 for several years. The University is a major center for academic and research activity. Its presence has contributed to the level of education in Eugene í