Item 3C: Resolution on FY11 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. Eugene’s economy typically follows the trends of the state and national economies. The unemployment rate for Eugene rose sharply as a result of the recession, from an average annual rate of 5.7% in 2008 to a high of 10.2% in 2009, primarily due to job losses in construction, manufacturing, retail, and professional services. Eugene’s 2010 unemployment rate dropped to 9.7%, still high by historic standards but lower than the unemployment rate for Lane County as a whole or for the State of Oregon. Annual Average Unemployment As a Percent of Labor Force 12% 10% % 8% 6% 4% 2001200220032004200520062007200820092010 EugeneLane CountyOregonU.S. The two pillars that have historically provided relative stability in Eugene’s economy are the large public sector employment base and population in-migration. In prior years, the influx of new residents has helped the economy diversify away from lumber and wood products manufacturing. California has been the largest source of new residents to the area due to Eugene’s proximity to that state, local environmental and cultural amenities, and relatively lower cost of living. However, Eugene’s population growth has slowed down significantly due to the recent recession. County, state and federal government agencies are centered in Eugene, as well as the University of Oregon and Lane Community College. Between 2001 and 2009 employment in the public sector increased by 12%, largely due to growth of the University of Oregon. In 2010, the University of Oregon had a record enrollment of 23,389 and provided approximately 4,000 local jobs. The University is a major contributor to Oregon’s economy, with an estimated economic impact of $1.97 billion. The University of Oregon is ranked by the Carnegie Foundation to be in the top category among U.S. research institutions. 3