Eugene staffing 'falling behind' as city asks more of its employees

Pandemic woes and economic challenges aren't just impacting personal budgets and service industry staffing — they're also leading Eugene to cut millions in spending in coming years and ask more of staff to avoid cuts to essential services.

Inflation, an increasing demand for services like public safety, parks and infrastructure, the coronavirus pandemic, homelessness and other factors have gotten the city to a point where it's spending more than taxes and fees bring in, officials learned during a regular financial update earlier this month.

While the city isn't alone in its struggles, it is falling behind similar employers in a market where workers are in high demand and recruitment and retention is competitive, Mia Cariaga said.

Staff numbers compared to the population have remained relatively flat over the years even as the city continues providing more services, said Cariaga, who heads the city department that includes human resources.

The city has “weathered challenges and expanded services by asking employees to take on more without giving more resources,” Cariaga said.

That’s started to mean the city is “falling behind with competitors who are able to keep a more manageable workload," she said.

The coronavirus pandemic, increased conversations around racial and social justice and changes in the economy all have led to shifts in the workplace, she said, and Eugene is feeling an impact as competitors charged ahead.

“For a long time, we were a leader in wages, benefits and pension plans, and we find ourselves at a place where we aren’t keeping up,” Cariaga said.

Some turnover 'alarming'

The city has seen around a 10% turnover rate in recent years, she said, and the rate of employees who aren’t represented by a union leaving the city is “alarming” – it was 16% in 2021 and is on track to exceed that in 2022.

Between Jan. 1, 2020 and June 30, 2022, the city had 402 employees leave and hired just 299, according to numbers Cariaga presented to officials.

It’s been difficult to hire, she said, with recruitment taking more resources and open jobs drawing smaller applicant pools.

And employees who are staying are seeing more and more impacts, she said.  City employees are “being asked to do a lot of work for a wage they could make elsewhere and have less responsibility,” she added.

Some people are taking more time off because of the stress, Cariaga said, while others are taking less time off because there’s no one to fill in for them. Employees also are using health benefits more often, she said.

Councilor Claire Syrett said she was particularly concerned to hear that there are employees who feel they can’t take time off even though they need it.

She said city leadership needs to keep the trauma the workforce has faced at top of mind over the next few years.

Councilor Randy Groves agreed officials and leaders need to be looking out for the workforce, calling employees the city’s “most valuable asset.”

The city is working to improve things, Cariaga said, with a focus on giving people a sense of belonging, offering transparent pay and increasing workload sustainability.

Finance director: Not if, but when a recession will hit

Staff also painted a somewhat bleak outlook of the city’s finances in coming years, echoing recent years of financial struggles.

While forecasts show the city keeping a surplus at or above goals in most years, that being true depends on around $10 million in reductions, said Twylla Miller, who heads the city’s finance department. Otherwise, the city's spending will outweigh the money coming in.

Unfunded needs like climate recovery and efforts to help the unhoused, future needs like creating a sustainable service system and pension rates are among several factors affecting the city’s budget, she said, along with inflation.

Though inflation is expected to come down based on the state economist’s forecast, there’s still a recession coming, Miller added.

“It’s not if a recession will start but when and how deep the recession will be,” she said.

The city is keeping an eye on a handful a funds with shortfalls, she said, including the ambulance transport and road funds.

Eugene might have to change service levels or infuse cash from other funds if they don't balance out, she said.

“I wish I had a rosier picture to paint,” she said. “We’ve been here before. This organization is very resilient and rises to the challenge.”

Officials agreed the city will find a way to weather financial challenges.

Councilor Randy Groves, who’s a former fire chief, said over the 40 years he's been part of budgeting, the city always seems to make it work.

“I’ve done 25 budgets with the city, and we always seem to figure it out,” Councilor Alan Zelenka said.

Zelenka added with all but "maybe a handful," officials have had to make cuts to the budget.

What's next?

Officials started a strategic planning process with a Friday and Saturday workshop.

People can watch both days of meetings at bit.ly/Eugene-meetings.

Eugene will move to a two-year budget and start budgeting based on service system priorities with the next budget process, which typically has a public process starting in the spring.

Contact city government watchdog Megan Banta at mbanta@registerguard.com. Follow her on Twitter @MeganBanta_1.

This article originally appeared on Register-Guard: Eugene staffing 'falling behind' as city asks more of its employees