Item 4C: Adoption of Resolution on FY12 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 Denver, Honolulu, Las Vegas, Los Angeles, Oakland, Palm Springs, Phoenix/Mesa, Portland, Salt Lake City, San Francisco, and Seattle. 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 in the Eugene-Springfield Metropolitan Statistical Area (MSA) rose sharply as a result of the recession, from an average annual rate of 5.2% in 2008 to a high of 12.1% in 2009, primarily due to job losses in construction, manufacturing, retail, and professional services. Eugene’s 2011 unemployment rate dropped to 9.5%, which is still high by historic standards. Annual Average Unemployment as a Percent of Labor Force 14% 12% 10% 8% 6% 4% 20012002200320042005200620072008200920102011 Eugene-Springfield MSAOregonU.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 low cost of living. However, Eugene’s population growth has slowed down somewhat 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 2002 and 2011, employment in the government, education and health services sectors increased by 15%, largely due to growth of the University of Oregon. In 2011, the University of Oregon had a record enrollment of 24,447 and provided approximately 4,000 local jobs. The University is a major contributor to Oregon’s economy, with an estimated economic impact of approximately $2.0 billion. The University of Oregon is ranked by the Carnegie Foundation to be in the top category among U.S. research institutions. 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. PeaceHealth Medical Group is the area’s largest employer with approximately 4,200 jobs. 3