Multi-Year Financial Plan FY12-17 - Final 4-14-11

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Introduction The Multi-Year Financial Plan (MYFP) is an annual compilation of significant unfunded financial challenges and opportunities that the City of Eugene is expected to encounter over the next six years. The MYFP is a practical tool to assist strategic thinking and planning. The 2012-17 MYFP lists fifty individual items. The majority of these items include estimated unfunded costs, but several items are placeholders with as-yet-to-be determined costs. If all those items with estimated costs were funded they would total about $281 million over the next six years. Given the status of the economy in recent years, along with significant needs facing our governmental partners and the length of time and process needed to implement new revenue sources, it is unlikely that the City will be able to fully fund all of the items in the MYFP. Therefore, it is recommended that certain items be designated as the highest priority for funding in the near-term. In this draft plan, nine items are recommended for highest funding priority. If these highest priority items were totally funded, costs would total about $134 million over six years. The additional items, if fully funded, would total an additional $147 million (not including placeholder items). Altogether, current estimates for all items with estimated costs would total $281 million over six years. What the Multi-Year Financial Plan Does The MYFP is intended to provide a number of important benefits. Linking of Council Goals process, many separate planning and facility management documents, General Fund Forecast and other fund forecasts. Making the best use of available election dates. Better strategic, long-range planning. Understanding of operational impacts of capital expenditures and maintenance-deferral decisions. Provision of a better framework for the budget process and Capital Improvement Program. Maintenance of a comprehensive inventory of unfunded challenges and opportunities. Allowance of more time to prepare for expected problems. Creation of an advanced detection system for funding “gaps” and likely fiscal challenges. Facilitation of an organizational culture for “thinking ahead”. Understanding and weighing alternative uses for the City’s available financial resources. Help to accomplish Council’s goal of “Fair, Stable and Adequate Financial Resources”. Evaluation of the need for possible new revenue. Providing direction to staff on where to focus their efforts. Multi-Year Financial Plan FY12-17Page 1