Item 4C: Adoption of Resolution on FY12 CAFR

Home Browse Search

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 that was completed in 2011. The University of Oregon campus is also the site for another large project that is close to completion, a 100,000 square-foot Integrative Science Building valued at $65 million. This building will house brain research, cognitive science, neuroscience, green materials science, nanotechnology research, and solar technology research. The Global Scholars Hall is a recently completed $75 million project that provides housing for 450 students and academic amenities. A privately funded expansion of Casanova Football Center, which is currently under construction, is estimated at $63.0 million. Several public and private construction projects are in progress in downtown Eugene. These include a new $55.0 million downtown campus for Lane Community College, located across from the Downtown Library. This project incorporates five floors of student housing, completed in the fall of 2012, along with a 90,000 square foot education building which is scheduled to open in January 2013. Other major downtown projects include reconstruction of the Broadway Commerce Center at Broadway and Willamette Streets and the Woolworth office building constructed 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 are provided by the Inn at 5th Street Market, which was completed in 2012. These projects will continue to partially offset decreased demand for residential and commercial construction due to a weak real estate market and will provide new permanent employment opportunities. In the summer of 2012 Eugene hosted the U.S. Olympic Team track and field trials. This was the largest national championship track meet in the world which selected the athletes to represent Team USA at the London Olympic Games in 2012. The University’s venerable Hayward Field received a multi-million dollar upgrade in preparation for the event, which drew approximately 20,000 out-of-area visitors. This event was supported by almost 2,000 volunteers and provided $31.0 million in estimated local economic impact. Rail and air connections through Eugene also continue to benefit from new investments. In 2010, the main runway at the Eugene Airport was repaved. Allegiant Air has begun direct service to Honolulu starting November 2012. 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 has provided 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. These forecasts are designed to inform policy makers about the long-term impacts of today’s budget decisions and other potential financial dynamics for each City operation. The largest of the City’s funds is the General Fund, which is the general operating fund for the City. In preparation for the FY13 Budget, the General Fund forecast was updated to provide policy makers with the financial outlook for the fund. Despite making more than $20.0 million in reductions in the General Fund budget over several years, the forecast demonstrated that growth in expenditures continued to outpace growth in revenues, resulting in a General Fund structural deficit of $7.0 million. Each year during the budget process, the City has made adjustments but the persistent economic recession has made it difficult to reach a stable budget. As a result of the updated forecast, the City Manager presented a two-year strategy to close the projected gap and stabilize the General Fund budget by the end of FY14. The goal of the strategy was to close the spread between revenues and expenditures and ensure a reserve balance equal to 8% of expenditures by the end of the forecast period. Budget adjustments of $4.0 million were proposed in FY13, with the remainder to occur in FY14. The General Fund forecast is in the process of being updated to start the FY14 budget process, and it is anticipated that the forecasted gap has grown again. The City Manager will present a strategy for addressing the gap in his FY14 Proposed Budget. The City also utilizes three additional important planning documents: the Capital Improvement Program, the Multi- Year Financial Plan and the Debt Affordability Study. 4