HomeMy WebLinkAboutMulti-Year Financial Plan FY12-17 - Final 4-14-11
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City of Eugene
Multi-Year Financial Plan
FY12 to FY17
April 14, 2011
Table of Contents
Introduction… 1
What the Multi-Year Financial Plan Does… 1
Recommended Prioritization… 2
Summary Table of High Priority Items, by Service Category… 2
How the Strategic Financial Plan is Assembled… 3
Coordination with the Capital Improvement Program… 3
How Items are Presented… 4
Details on High Priority Items
General Fund Shortfall… 5
Ambulance Transport Fund Shortfall… 6
Parking Fund Stabilization… 7
Parks & Open Space Maintenance and Operations Capacity… 8
Deferred Maintenance… 9
Echo Hollow/Sheldon Pool Systems Preservation… 10
Pavement Preservation Backlog… 11
Envision Eugene – Technical Work… 12
Jail Bed Additions… 13
Listing of Additional Items… 14
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
Recommended Prioritization
In light of limitations of financial resources and the many unfunded needs identified in the MYFP, choices must
be made about which items to focus on over the next several years. Items recommended for high priority
treatment are based on several considerations including: the level of commitment the City may already have
regarding a particular item; judgment about the level of new funding that the community might be willing to
discuss and approve over the near future; preservation of prior City investments in infrastructure and facilities;
the potential impact of funding or not funding on core City services; and the ability of the City to sustainably
fund an item over time. These recommendations are a starting point for discussion by Executive Managers,
Budget Committee, City Council and citizens, and subsequent budgetary and election sequencing decisions.
Summary of Recommended Highest Priority Items
The following items are recommended for highest priority consideration. Detailed information on each of these
items is included in this document.
Note: Amounts shown are in $1,000s.
PlanServiceTitle BriefDescription Total
Category Category Unfunded
Need
General General General Fund Resources needed to continue General Funded services over the 26,113
FundFundnext six years.
Shortfall
Continuing
Emergency Ambulance The Ambulance Transport Fund is currently operating at an 7,843
Current Medical/Fire Transport Fund annual financial deficit, primarily due to reduced levels of
ServicesServicesShortfall reimbursement from Medicare and Medicaid.
ParkingParkingFund The Parking Fund forecast shows that the fund will not have the 3,475
Stabilization resources for $3.4 million in capital major maintenance projects
scheduled in the CIP for FY13 through FY15. Parking program
staff has identified rate changes and additional operating
efficiencies in the fund forecast, but these actions will not to fully
eliminate the projected shortfall.
Preserving Parks and Parks & Open The voter-approved increase in the park and natural area system 12,000
andOpen Space Spacein recent years has resulted a rapidly growing number of assets
Maintaining Maintenance & without sufficient funding to maintain these assets
Existing Operations
Assets Capacity
Public Deferred This item is for unfunded General Fund building maintenance 14,416
Buildings & Maintenance needs. This estimate assumes that building capital preservation
Facilitiesresources are increased by $100,000 per year through FY17.
These unfunded costs do not include deferred maintenance costs
for current City Hall; those costs will be accommodated within
the City Hall project funding.
EchoThis item will fund major repair or replacement of pool water 2,500
Hollow/Sheldon supply piping and gutter drain systems pools and stabilization of
Pool Systems deteriorating pool shells at Echo Hollow and Sheldon Pools.
Preservation
Multi-Year Financial Plan FY12-17Page 2
PlanServiceTitle BriefDescription Total
Category Category Unfunded
Need
Preserving Transpor-Pavement The 2010 Pavement Management Report listed the City's backlog 64,450
andtation Preservation of needed pavement preservation projects at over $150 million. In
Maintaining BacklogMay 2007, the Council Subcommittee on Transportation Funding
Existing Solutions recommended a total yearly pavement preservation
Assets funding target of $18 million. Unfunded amount shown is net of
local motor vehicle fuel tax revenue, Transportation SDC
reimbursement revenue, and 2008 Street Bond revenue. The Street
Bond expires in FY14.
Implementing
Metro and Envision The purpose of Envision Eugene is to develop a comprehensive 1,500
Adopted Community Eugene – set of growth strategies to meet the city's 20 year land needs.
Plans or Planning TechnicalThere will be a need for substantial technical assistance to develop
Policies Work these future implementation measures. This item doesn’t include
funding for as yet undetermined projects to implement the plan.
Municipal Jail Bed This item will support the addition of 10 ongoing jail beds 1,855
Court Additions dedicated for housing Eugene Municipal Court offenders. Costs
include leasing 10 beds located within the Springfield Jail facility,
contractual court appointed attorney time, contractual city
prosecutor time and related staff time. The jail beds will support
the Downtown Safety Initiative and associated initiatives for
adding police officers. One-time funding of $350,000 is provided
in FY12.
Total 134,152
How the Multi-Year Financial Plan is Assembled
Each year, City departments identify significant unfunded opportunities and challenges that may arise within
the next six years. Items may be for service or capital purposes. They may be based on a city goal or policy, or
a report or plan. To be included in the MYFP an individual item must have an unfunded cost of at least
$250,000 in any one year of the six-year period. Placeholder projects with a significant but undetermined
unfunded cost that is likely to be $250,000 or more in any year may be included.
The compiled items are then reviewed and discussed by the Executive Managers, who make a final
determination on which items will be included and which will be prioritized.
Coordination with the Capital Improvement Program
The Capital Improvement Program and the MYFP are closely coordinated but have different uses. The CIP is
formally adopted by the City Council, and provides the basis for preparation of the City’s Capital Budget for the
following two years. It also serves as a long-term planning tool for unfunded small or large capital projects.
The MYFP is presented by the City’s Executive Managers and is not formally adopted. It serves as a
comprehensive, flexible planning resource and tool to support strategic thinking and planning for a range of
unfunded capital and non-capital needs. The MYFP includes non-capital items as well as items with capital
costs. Capital projects proposed for funding in the CIP may have associated unfunded costs for operations or
Multi-Year Financial Plan FY12-17Page 3
preservation & maintenance shown. Unfunded costs for capital projects in the CIP may also appear in the
MYFP.
The Capital Improvement Program document contains information that supplements the information in the
MYFP. That document includes descriptions of specific plans, processes, funding sources and restrictions
associated with capital projects, a summary of the City’s Financial Management Goals and Policies that apply
to capital projects and a review of the City’s debt capacity and debt policies.
How Items are Presented in the MYFP
The items recommended for highest funding priority each are presented with full details. In an effort to focus
and reduce the length of the document, the remaining items are presented in a table form with summary
descriptions and summed annual estimated unfunded costs. Additional details can be provided about any of
these other items upon request.
All items fall within five general plan categories.
1.Continuing Current Services
2.Preserving and Maintaining Existing Assets
3.Achieving Efficiencies or Long Term Cost Savings
4.Implementing Adopted Plans or Policies
5.Improved or Expanded Services Not Part of an Adopted Plan
Within each plan category items are organized more specifically by service category.
Unfunded costs for each year are shown for each item, net of any potential revenue or savings that would be
expected. Three types of costs may be shown:
Capital costsare those costs that would be incurred by a capital project, which is the acquisition or
extension of the useful life of a fixed asset with a life expectancy greater than one year.
Facility Operating costs is the costs of operating a building, site improvement or other fixed asset.
This usually includes ongoing maintenance costs and the cost of utilities servicing the asset. Some
minimum level of facility costs is unavoidable for every City asset. New capital projects imply
additional facility costs.
Program Operating costs include the cost of performing program activity and delivering the
particular City services. New or continuing program costs may or may not be associated with capital
projects and facility costs.
Multi-Year Financial Plan FY12-17Page 4
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