Item 3C: Adoption of Resolution Acknowledging Receipt of the FY10 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 four 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 for City of Eugene rose sharply as a result of the recession, from an average annual rate of 5.7% in 2008 to 10.2% in 2009, primarily due to job losses in construction, manufacturing, retail and professional services. While the economy is now improving, local unemployment remains high. Several large public construction projects are under way that will continue to partially offset decreasing demand for residential and commercial construction due to a weakening real estate market. The 2009 unemployment rate in Eugene (10.2%) was lower than the unemployment rates for Lane County (11.9%) and the State of Oregon (11.1%), but higher than the national unemployment rate of 9.3%. The local unemployment rate has remained elevated through the first half of 2010. Annual Average Unemployment As a Percent of Labor Force 12% 10% 8% % 6% 4% 2% 2000200120022003200420052006200720082009 EugeneLane CountyOregonU.S. 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