The City of Eugene is at a financial crossroads as the City Manager, Sarah Medary, prepares to address the Eugene Budget Committee regarding the 2025-2027 Proposed Budget on April 30. With a discernible tone of gravity, Medary stated, “This year’s budget stands out as one of the most challenging in my career,” according to a City of Eugene announcement. The proposed budget and details for the upcoming meeting are available on the City’s website.
Eugene’s fiscal strategy, marked by a transition to a two-year budget cycle and the adoption of priority-based budgeting, highlights a deliberate shift towards alignment with the community’s priorities—a move influenced by the findings of the Community Survey in 2022. However, the city’s General Fund faces an ongoing struggle, grappling with a “structural imbalance” where costs of services systematically outpace revenue. As the City Council considers the necessity of continuous priority programs and services, the looming GF deficit is projected at $11.5 million annually or $23 million for the two years.
In response to this financial strain, the City Council initiated a Fire Service Fee on February 10, intending to secure Eugene’s fire services and mitigate the gap within the General Fund. Nevertheless, the community’s reaction was promptly felt, as the fee has been sent to voters by petition, leaving the intended fiscal band-aid unaapplied. The City Manager aims to present an amended budget that tackles the full $11.5 million annual gap to the Budget Committee at the end of April…