Item 3C: Adoption of Resolution Acknowleding 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. Citizens 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 serviced by five air carriers, linking Eugene to Seattle, Portland, Denver, Salt Lake City, Phoenix/Mesa, Las Vegas, Los Angeles, Oakland and San Francisco. Eugene is the largest city in Lane County and the second largest city in Oregon, representing 45% of the county’s, and 4% of the state’s population. The Eugene economy typically follows the trends of the Oregon economy. The unemployment rate in Eugene has increase significantly in FY09 and has almost doubled from the year before, primarily due to job losses in manufacturing and construction sector. By June of 2009, the unemployment rate in Eugene was 10.6%, which was lower than the unemployment rates for Lane County (12.6%) and the State of Oregon (11.9%), but higher than the national unemployment rate of 9.5%: The two pillars that historically provided some stability in Eugene’s economy are its large public sector base and 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 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. It should be noted, however, that in FY09 population growth has slowed down to about 0.6% per year compared to an average of 1.4% from 2000 through 2008. 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 being well above the national average. In FY09, 39.5% of the City’s population had been awarded a Bachelor’s degree or higher. Eugene has become a hub for scientific research and educational support industries in Oregon.