Resolution No. 5176 - Laserfiche WebLink

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As the local economy has diversified away from dependence on resource-based and manufacturing industries, the Eugene-Springfield area has also become an increasingly important center for health services in western Oregon. The University District campus is home to the Center for Medical Education and Research, a partnership among the University of Oregon, Oregon Health Sciences University and Sacred Heart to train new physicians. The campus employs more than 1,250 people and serves to strengthen the city’s health care sector. With the federal Affordable Care Act of 2010 now fully implemented, the number of uninsured Oregonians has dropped, providing greater payment stability to hospitals, clinics and the city’s economy. Kaiser Permanente, one of the nation’s largest nonprofit health care providers serving 9.6 million people, recently opened two new clinics in the Eugene market. The U.S. Department of Veterans Affairs (VA) completed a new $60.0 million, 100,000 square-foot facility in north Eugene that is expected to employ 265 people. The Oregon Medical Group, a multispecialty doctor’s group, announced plans for a $27.0 million building upgrade for a clinic set to open in 2017. Eugene’s high tech manufacturing sector is also on the precipice of a resurgence. Broadcom, a multi-billion dollar semi-conductor firm announced plans to redevelop the former Hynix plant on the west side of the city. Broadcom anticipates spending $100.0 million to upgrade the building and $300.0 million for new equipment installation. The company expects to initially hire 229 employees and create 700 construction jobs. The City’s small burgeoning tech sector is projected to outpace growth in other industries. The Oregon Employment Department forecasts the tech sector will grow by 28 percent in Lane County between 2014 and 2024. The City is fostering growth in small tech companies by working with the Eugene Water and Electric Board (EWEB) to install a fiber network in the downtown core to provide affordable, high-speed internet for businesses and residents. Eugene hosted the U.S. Olympic Track and Field Trials in 2016. The University’s venerable Hayward Field held the event that draws approximately 20,000 visitors. Eugene has also been selected to host the 2021 IAAF World Outdoor Track and Field Championship, marking the first time this prestigious event has been held in the United States. Large events are helping to expand the city’s lodging amenities. Hilton Hotels is nearing completion on a new 120-room hotel in downtown Eugene, Hyatt is scheduled to open a new 124-room hotel just north of downtown and InterContinental Hotel is scheduled to open a new 100-room hotel near UO sometime in 2017. These and other developments are helping the city evolve and grow from its traditional lumber and manufacturing based economy. Eugene is also investing in its transportation system. The City is now midway through a ten-year program of major street repair projects that accelerated in 2012 when Eugene voters resoundingly approved a $43.0 million bond measure to repair 76 streets, as well as bicycle and pedestrian projects. FY16 was the second year the voter approved property taxes were levied for the street repair projects. The EWEB waterfront property is the largest area available for redevelopment in downtown Eugene. In addition to working to revitalize the core area of downtown, elected officials and staff from both the City and EWEB have been working in partnership with community members to determine the desired mix of uses on the site and to transform the existing industrial site to a downtown riverfront. In 2013, the City Council adopted a series of land use amendments including new land use designations and special area zoning for the site. The next key steps involve the selection of a developer to lead the transformation of the waterfront property, negotiations for property acquisition and a development agreement before any redevelopment scenario can begin. Although it may be some time before the anticipated uses, including housing and restaurants, are completed, redevelopment of this important site is moving forward with the goal of creating an urban, active, sustainable riverfront for the entire community to enjoy. Long-term Financial Planning The City of Eugene recognizes the importance of strategic long-term financial planning. Each year, forecasts are prepared to estimate the financial health of significant funds for the next six fiscal years. These forecasts are designed to inform policy makers about the long-term impacts of pending budget decisions and other potential financial dynamics for City operations. The City also utilizes three additional important planning documents: the Capital Improvement Program,the Multi-Year Financial Plan and the Debt Capacity Analysis. The largest fund is the General Fund, which is the general operating fund for the City. In preparation for the FY17 budget, the General Fund forecast was updated to provide policy makers with the financial outlook for the fund. After closing a nearly $30.0 million gap in the General Fund budget in the years following the last recession and reducing the annual operating budget growth rate from 6.2% in FY03 through FY09 to 2.1% from FY10 through FY16, the City is projected to have greater fiscal stability in the future. Revenues are projected to grow by 3.7% on an annual basis from FY17 through FY22, while expenses are projected to grow by 3.9% over the same time period. 4