Item 3C: Resolution on FY11 CAFR

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As the local economy has diversified away from dependence on resource-based manufacturing, the Eugene- Springfield area has become an increasingly important center for health services in Western Oregon. Between 2001 and 2009, employment in the health care services sector grew by 24%. Some of the local job losses have been offset by large construction projects including the University of Oregon’s new 405,000 square foot, 12,500 seat Mathew Knight Arena. This $200.0 million project was completed in February, 2011. The University of Oregon campus is also the site for another large project that is underway, a 100,000 square-foot science building valued at $65.0 million. This building will house brain research, cognitive science, neuroscience, green materials science, nanotechnology research, and solar technology research. The East Campus Residence Hall is a $71.5 million project that broke ground in July 2010 and is expected to provide housing for 450 students and academic amenities by the fall of 2012. Several public and private construction projects are in progress in downtown Eugene. These include a new $55 million downtown campus for Lane Community College, located across from the Downtown Library. This project will incorporate five floors of student housing along with a 90,000 square foot education building, and is expected to be completed by November 2012. In addition, a major reconstruction project is the Broadway Commerce Center at Broadway and Willamette Streets, and ground has been broken by Bennett Development for a new five- story commercial building on an adjacent site. All of these projects have benefited from partnerships with the City of Eugene and the Urban Renewal Agency. New downtown hotel accommodations will be provided by the Inn at 5th Street Market, which is currently under construction. These projects will continue to partially offset decreased demand for residential and commercial construction due to a weakening real estate market and will provide new permanent employment opportunities when completed. Rail and air connections through Eugene also continue to benefit from new investments. In 2010, the main runway at the Eugene Airport was repaved. Also, the Airport has received a $500,000 federal grant to help start daily nonstop flights to San Jose, California. The Union Pacific Railroad will spend about $33.5 million to improve 75 miles of its rail line from Oakridge through Eugene and on to Harrisburg, as well as its rail yard in Eugene. The U.S. Department of Transportation will provide a $13.5 million grant to complete repairs to the Coos Bay rail line, which provides freight services between the City of Coos Bay and Eugene. 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 each major fund over the next six years. The City also utilizes three additional important planning documents: the Capital Improvement Program, the Multi-Year Financial Plan and theDebt Affordability Study. In February of 2011, the City Council approved the Capital Improvement Program for FY12 to FY17. The Capital Improvement Program (CIP) forecasts the City’s capital needs over a six-year period based on various long-range plans, goals, and policies. The underlying strategy of the CIP is to plan for land acquisition, construction, and major maintenance of public facilities necessary for the safe and efficient management of City assets. A critical element of a balanced CIP is the provision of funds to preserve or enhance existing facilities and provide new assets which will help the City respond to changing service needs and community growth. The program serves as the basis for the capital budget and is updated every two years. The FY12-17 CIP totals about $152.3 million in projects with funding secured or identified from a variety of sources. Transportation is the largest CIP category with a total allocation of $46.9 million, of which $41.6 million is dedicated towards pavement preservation, and another $5.3 million for other transportation projects. Airport capital improvements, including new airport fire rescue station, terminal building expansion and preservation and $25.5 million for public buildings will primarily be maintenance projects, will account for $46.8 million. About invested in preservation and capital maintenance of existing City facilities. Improvements to preserve and rehabilitate the City’s wastewater system will be funded with $13.1 million. Under the City’s stormwater program, drywell decommissioning, stream corridor acquisition, bank stabilization and stream restoration, and system upgrades and capacity enhancements are to be funded at $13.5 million. Approximately $6.6 million in anticipated capital spending will be for parks and open space projects. In April 2011, the City’s Executive Team reviewed and approved the Multi-Year Financial Plan (MYFP) for FY12 to FY17. The MYFP was subsequently presented to the Mayor and the City’s Budget Committee. The Multi-Year Financial Plan is an annual compilation of significant but unfunded challenges and opportunities that are likely to 4