City Council begins discussion of Eugene’s economic, financial future

Eugene city leaders have their work cut out for them in the months and years ahead as they wrestle with an ongoing budget gap that will only increase.

To help guide their work, they now have recommendations and a report from the city’s Technical Advisory Group on Fiscal Stability, a 12-person committee of financial and business experts.

The group, called TAG in city circles, met about a dozen times between September and January to examine the city’s financial condition and strategic plan, and analyze economic data. City councilors received a high-level overview of the group’s conclusions in a work session, Monday, Feb. 9.

In other action at Monday’s meeting, councilors unanimously approved

• Eugene’s contract with incoming City Manager Jenny Haruyama, who is leaving Beaverton to lead Eugene and will receive an annual base salary of $306,000.
• Plans to put a five-year local option levy on the May ballot that would generate about $4.3 million annually for city library services.
•  A resolution that declares federal immigration enforcement actions are a “humanitarian crisis” and reaffirms support for immigrant communities.

Advisory group report

In a work session before the council’s main meeting, councilors heard about the Technical Advisory Group’s work to help the city plan budgets and set goals.

“It was amazing to see how engaged this group was and how eager they were to dig into hundreds of pages of city budget information,” said Assistant City Manager Matt Rodrigues, who is filling in as acting city manager until Haruyama starts April 15.

Now, there are a few hundred more pages to dig into.

City councilors have a 407-page report that the group compiled, complete with recommendations and lofty goals, like an increase of $25 million in new tax revenues from 10,000 new jobs within 10 years. Specifically, the report says Eugene’s economic development work is too fragmented and needs to be more structured and aggressive. For example, the city needs to have more shovel-ready land designated for potential development, the report said.

With the report in hand, councilors will tackle strategic planning, including a March 11 work session on benchmarking, or comparisons to other cities, and a subsequent session in the spring on economic development.

Elected officials praised the report, and stressed that the work is just beginning. 

“We all have heard that adage about the way that opportunity can come from crisis,” Eugene Mayor Kaarin Knudson said. “I think in this case, with the work that we’ve done in our community over the past year, the opportunities that we are finding are a result of a willingness of a lot of people to step forward courageously.”

The group’s assignment was to come up with a blueprint of recommendations and ideas to tackle the city’s finances.

The city projects a $2 million annual gap in its 2027-2029 budget cycle, which is forecast to grow to more than $10 million annually by the 2033-2035 biennium.

Rising inflation, growing personnel costs and increased health care and pension costs are all factors that are driving the city’s budget outlook, one that’s common in communities across Oregon.

But councilors said the challenges also create opportunities to unite and work together.

“I sense for the first time in a long time, an opportunity for alignment amongst an awful lot of people who don’t always agree,” Councilor Mike Clark said, adding that “we’re all either progressing into the future and growing or we’re dying.”

“It’s time to choose,” Clark said. “It’s time to choose that we need to grow together as a community.”

Council President Lyndsie Leech said the report goes beyond the numbers of a tough budget landscape and offers a strategic look at the future. 

“The through line I saw really was: ‘How do we intentionally shape our future together?’ And I think that’s really beautiful.”

Immigration resolution

During their business meeting, councilors officially declared that federal immigration enforcement actions are a “humanitarian crisis.” They unanimously passed a resolution that expresses support for immigrant communities and says all residents “should feel safe” accessing services, medical care, education and going to work.

Less than two weeks after protesters clashed with federal law enforcement at the Eugene Federal Building, the resolution “encourages residents to engage safely and nonviolently in civic life.”

Councilors criticized the federal activity and its impact on the community. 

“They are going after members of our community who have done all the right things, who have filled out all the right paperwork,” Councilor Eliza Kashinsky said, adding, “They are creating fear in our community.”

Councilor Matt Keating said the resolution is “a small but powerfully important step in helping right the wrongs” of the federal administration.

Library levy

Councilors will ask voters to approve a five-year local option levy on the May ballot that would generate about $4.3 million annually for city library services. 

The proposed levy would fund services paid for by the expiring library levy, including hours across three locations, collections and other programs. The new levy also would expand early literacy outreach, restart a storytime program in schools and child care centers and add two automatic 24/7 pickup kiosks for books: one in the Churchill neighborhood and the other to be determined.

City manager contract

Haruyama, Eugene’s new city manager, will get a base salary of $306,000, taking over from former city manager Sarah Medary. 

She will also receive a monthly allowance of $500 for transportation and $70 for a smartphone. The contract includes a deferred compensation benefit of $19,000 per year and up to $10,000 in moving expense reimbursements.

The City Council selected Haruyama on Jan. 15 to become Eugene’s next city manager, following a national search.