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<br />Eugene’s economy continues to grow with projects related to the University of Oregon, an expansion in construction
<br />activity, the city’s burgeoning tech sector and redevelopment of the City’s Riverfront Urban Renewal District. With
<br />an initial $500.0 million funding commitment, the UO launched the $1.0 billion Phil and Penny Knight Campus for
<br />Accelerating Scientific Impact. Nike co-founder, Phil Knight, has committed to giving the school $50.0 million a year
<br />for the next decade for the project. The new campus will be designed to foster collaboration between the next
<br />generation of scientists, industry and scientific entrepreneurs to improve the quality of life for Oregonians, the nation
<br />and the world. The state legislature also approved $20.0 million in bonds to help fund the project. The UO has also
<br />begun a major remodel of its iconic track and field stadium in preparation for hosting the 2021 World Championships.
<br />The remodel is being financed through private donations and will expand the stadium’s seating capacity from 10,500
<br />to 30,000.
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<br />Long-term Financial Planning
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<br />The City of Eugene recognizes the importance of strategic long-term financial planning. Each year, forecasts are
<br />prepared to estimate the financial health of significant funds for the next six fiscal years. These forecasts are
<br />designed to inform policy makers about the long-term impacts of pending budget decisions and other potential
<br />financial dynamics for City operations. The City also utilizes three additional important planning documents: the
<br />Capital Improvement Program, the Unfunded Needs Assessment and the Debt Capacity Analysis.
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<br />The largest fund is the General Fund, which is the general operating fund for the City. In preparation for the FY19
<br />budget, the General Fund forecast was updated to provide policy makers with the financial outlook for the fund.
<br />After closing a nearly $30.0 million gap in the General Fund budget in the years following the last recession and
<br />reducing the annual operating budget growth rate from 6.2% in FY03 through FY09 to 3.6% from FY12 through
<br />FY18, the City has achieved greater fiscal stability. Revenues are projected to grow by 3.4% on an annual basis
<br />from FY19 through FY24, while expenses are projected to grow by 3.2% over the same time period. With continued
<br />fiscal stability in the prior two years, the FY19 Adopted Budget provides funding for current services, as well as
<br />additional services to meet the needs of the community. The FY19 Adopted Budget includes additional funding for
<br />the criminal and community justice system initiatives, downtown and urban parks improvements, park safety and
<br />security, railroad quiet zones and more. FY19 General Fund budget changes total $3.9 million, with one-time or
<br />limited duration changes representing $3.3 million of the total. Non-general fund budget changes total $29.9 million.
<br />Although the City has achieved greater fiscal stability and is able to make targeted service enhancements, the post-
<br />recession budget environment continues to be uncertain, and the six-year forecast shows a stable budget through
<br />FY21, with an anticipated gap beginning in FY22 that is largely attributable to increases in retirement rates.
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<br />In March 2017, the City Council approved the FY18-23 Capital Improvement Program (CIP). The CIP forecasts the
<br />City’s capital needs over a six-year period based on various long-range plans, goals, and policies. The underlying
<br />strategy of the CIP is to plan for land acquisition, construction, and major maintenance of public facilities necessary
<br />for the safe and efficient management of City assets. A critical element of a balanced CIP is the provision of funds
<br />to preserve or enhance existing facilities and provide new assets which will help the City respond to changing
<br />service needs and community growth. The program is approved every other year and serves as the basis for the
<br />capital budget for the next two fiscal years. The FY18-23 CIP totals $162.3 million in projects with funding secured
<br />or identified from a variety of sources. The capital budget for FY19 totals $53.0 million.
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<br />Transportation is the largest CIP category with $53.9 million in anticipated spending over the six year planning
<br />period, of which $32.2 million is dedicated towards pavement preservation and road maintenance. Projected
<br />spending for public buildings and facilities totals $32.4 million and will primarily be invested in preservation and
<br />capital maintenance of existing City facilities. Capital spending for Parks and Open Space projects, including the
<br />Park Blocks downtown open space improvement, Priority 1 neighborhood parks, park acquisition and site
<br />renovations, is estimated to be $23.3 million. Anticipated spending for the City’s wastewater system, mostly to
<br />preserve and rehabilitate existing infrastructure, totals $18.7 million. Airport capital improvements, including the
<br />terminal building roof replacement, Taxiway Alpha rehabilitation, and airfield geometry corrections, are estimated
<br />to be $18.4 million. Finally, spending for the City’s stormwater program, drywell decommissioning, stream corridor
<br />acquisition, bank stabilization and stream restoration, and system upgrades and capacity enhancements is
<br />estimated to be $15.6 million.
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<br />December 10, 2018, Meeting - Item 2D
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