City Council Work Session: June 8, 2026

The City of Eugene City Council held a work session on June 8, 2026, focused on the city's long-range financial planning and budget outlook. Staff presented a detailed overview of the general fund forecast, highlighting a structural budget gap that has increased to $5.1 million annually in the next biennium due to reduced revenues from land sales, utility payments in lieu of taxes, and state shared revenues, alongside rising expenses including pension costs and inflation. To address this, the city has implemented a hiring pause and targeted underspending to improve reserves and reduce the budget gap. The session also covered fiscal distress in several non-general funds, limited duration funding sources such as the community safety payroll tax, and unfunded capital and service needs. A significant procurement-related action was the council's approval of a motion to add a business development manager position to the June supplemental budget for $800,000, with two additional analyst positions planned for the next budget cycle, aimed at advancing economic development efforts. The council discussed strategies for managing budget constraints, funding uncertainties, and the importance of aligning budget principles with strategic priorities in upcoming workshops.