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Home My WebLink About2023-03-06 Study Session•'':•� Council Study Session Agenda ASHLAND CITY COUNCIL STUDY SESSION AGENDA Monday, March 6, 2023, 5:30 p.m. Council Chambers,1175 E Main Street View on Channel 9 or Channels 180 and 181 (Charter Communications) or live stream via rvtv.sou.edu select RVTV Prime. HELD HYBRID (In -Person or Zoom Meeting Access) For written public testimony, email public-testimonyCcbashland.or.us using the subject line: Ashland City Council Public Testimony For public oral testimony, fill out a Speaker Request Form at ashland.or.us/speakerrequest and return to the City Recorder at melissa.huhtala@ashland.or.us 5:30 p.m. Study Session 1. Public Input (Up to 15 min.) 2. Economic Round Table a) Status of Ashland Presentations (45 min.) • City Staff - Joe Lessard, City Manager • SOU - Rich Bailey, Pres. Of SOU • Travel Ashland - Katherine Cato, Travel Ashland Director • Asante/Ashland Community Hospital - Dr. Steven Hersh, MD, VP of Medical Affairs/Admin. Ashland Asante Community Hospital • Ashland Chamber of Commerce - Sandra Slattery, Exec. Dir. b) Key Discussion Questions: (90 min.) What are our economic challenges and opportunities? o Important trends or takeaways signaled from the last three years What are the most important next steps for addressing our challenges and opportunities? o Long-term sustainability (20-50 years) What should our next "Better Together, "steps be? Three joint gateway or catalyst efforts. 3. Adjournment of Study Session In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Manager's office at 541.488.6002 (TTY phone number 1.800.735.2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1). Page Iofl r d r i• � f n . g6 Econo ic Development Discussion March 6, 2023 Particinc digw it :IiB�I„M�M p ISM. W G MASANTI, �j EMERGENCY min DjjtiwARK'"hlw k �. �. SurB+h' C"Rar •Chamber of Commerce 2 • What are our economic challenges and opportunities? ❑ Important trends or takeaways signaled from the last three years • What are the most important next steps for addressing our challenges and opportunities? ❑ Long-term sustainability (20-50 years) • What should our next "Better Together, "steps be? ❑ Three joint gateway or catalyst efforts. '0 Ashland is a resilient, sustainable community that maintains the distinctive quality of larp a y p � for which it is known. Projects Programs We will continue to be a unique and caring city that stresses environmental conservation, fosters artistic expression, and is open to new ideas and innovation. Resources We will plan and direct our efforts to fulfill this Vision for rye long term with a constant view toward being an open, welcoming community for all with a positive economic future. Risk Assessment & Strategic Priorities Partnership s & Plans community Characteristics • /` • Population Growth Ashland Population 35000 30139 \ Historic 30000 • • .? Population �.•••• 25141 25000 20000 ' • • 22473 2022-2072 PSU Coordinated Population 15000 Estimates (Preliminary) 10000 • • • • Comprehensive Plan Projection 5000 (1989) 0 1971 1981 1991 2001 2011 2021 2031 2041 2051 2061 2072 Ashland Characteristics • Risks o Public Safetv • Fire (urban, wildfire & smoke) • Pandemic o Environmental • Climate Change — Extreme weather — Changing biodiversity — Water resources • Flood • Earthquake o Organizational • Turnover — Recruit, Train & Retain — Lost productivity o Economic • Changing Economic trends • Service Industry/Fixed Income Economy — Workforce earnings outflow — Emergency Recovery/Resilience • High housing cost — Shift to high asset owners — Push out of affordable housing — Out flow of family housing • Economic downturn — Recession/Inflation State of Oregon Em p I oy m e n t 2021 Annual Average Payroll Employment Percent of Total Ashland vs. Oreogn statewide Department 18.09'. 1 6.oas ■ Ashland city vicinity , ■ UrcfTon Ashland's Strongest 14.11 Employment Sectors 120% 10.0% • Retail 8.0% - - • Educational Services • Health care � • Arts and Entertainment • Accommodation and Food �a� ��` py` 4f �� Jc ca .yti t� 4t a �a ¢a`'� �i Qc ¢cam ¢� e� aca a�ac cca akc raQ� °� Service c mac` ¢`' o� c a ado �o aro s e c�Rs, O� State of Oregon Employment Department Inflow/Outflow Commuting • 66% of people employed in Ashland commute in from outside the City • 58% of workers that live in Ashland commute out of Ashland for work. Lki Map Legend .G r ....— y All Workers 0 Selection Areas Inflow/Outflow x Analysis Selection ♦ En.ploy"I and Live in Selection Area r Employed in Selection Area, Live Ontside Live in Selection Area, Employed Ont.ide Note: Overlay arrows do not indicate dirce-tionality of worker flow between home and employment. locations. ❑�u Gre7on O Calilorn�a �•u Ashland Characteristics 35% 30% 28% • Ashland's population is o 25% increasingly made up Q 20% of older individuals n 0 15% • Ashland's proportion of young households is n 10°i° decreasing 5% 0% r) rI0/ 24% 29% 31% Under 20 20-39 40-59 60+ Age Cohort ■ 2000 ■ 2014-2 018 J If your household earns.... $21,900 $36,600 $58,500 $73,100 $87,700 • Ashland's (30% of MR) (50% of MR) (80% of MR) (100% of MFI) (120% of MFI) Median home Then you can afford.... sale price is $550 $920 $1,460 $1,830 $2,190 549,000 monthly rent monthly rent monthly rent monthly rent monthly rent OR OR OR OR $110,000- $205,000- $256,000- $307,000- • Ashland's asking $128,000 $234,000 $292,000 $351,000 rent fora 2- bd r home sales price home sales price home sales price home sales price unit is $1550 Social Security $17,410 Retail Salespersons $36,040 Middle School Teacher Police Officers Civil Engineer $58,610 $73,950 $87,230 Fast Food Worker Dental Assistants Electrician Librarians $28,560 $45,400 $64,060 $82,750 Ashland Characteristics ------------��--------------------------------- 1 Nearly %2 of the households in Ashland: ; ' o Are low income I o Spend over 30% of income on housing L-------- r------------------------------------� i 1,851 HH ' 1,286 HH i 1,457 HH 20% 10% 19% i 13% 15% i i 0% ' Extremely Low Very Low Income Low Income i i Income (30-50% of MR) (50-80% of MR) (<30% of MFI) $19.5k - $32.6k $32.6k - $52.1k <$19.5 k ---------------------------------------------� 3,657 HH 1,628 HH 16% Middle Income High Income (80-120%of MFI) (>120% of MR) $52.1k - $78.1k > $78.1k 80% Median Income = $52,100 Source: U.S. Department of HUD, Jackson County, 2020. U.S. Census Bureau, 2015-2019 ACS Table 19001. Ashland Characteristics 63% of Ashland Households earn less than necessary to afford median housing priced i 1,851 HH i 1,628 HH 20% 1,286 HH 1,457 HH 10% 19% i 13% 15% 16% 11 i Extremely Low Very Low Income Low Income Middle Income i Income (30-50% of MR) (50-80% of MR) (80-120%of MFI): (<30% of M FI) $19.5k - $32.6k $32.6k - $52.1k $52.1k - $78.1k t----------------------------------------------------------� <$19.5 k i o Source: U.S. Department of HUD, Jackson County, 2020. U.S. 120% Median income = $78100 Census Bureau, 2015-2019 ACS Table 19001. 3,657 HH High Income (>120% of MR) > $78.1k Ashland Characteristics -------------------------------------------1 Nearly 200% median income is needed to 3,657HH 1 purchase a median priced home ; -------- --- --- ---------------, `. 1 30% 1 1 1 1,851 HH 1 1,628 HH 1 1 1,286 HH 1,457 HH 1 1 20% 1 1 1 1 1 10% 19% 1 1 1 13% ° 15/0r 16% 1 1 Extremely Low Very Low Income Low Income Middle Income High Income 1 1 Income (30-50% of MR) (50-80% of MR) (80-120% of MR) (>120% of MR) 1 1 (<30% of M FI) $19.5k - $32.6k $32.6k - $52.1k $52.1k - $78.1k > $78.1k 1 1 <$19.5 k ------------------------------------------------------- 1 Source: U.S. Department of HUD, Jackson County, 2020. U.S. 192% Median income = $140,000 Census Bureau, 2015-2019 ACS Table 19001. Pik Non-taxable Lands Taxable land (acres) Residential Commercial/In dustrial Non-taxable land (acres) $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $ 500,000 $0 Ashland Tax Revenue by Fiscal Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 ■ Lodging TOT Tax ■ Food and Beverage Tax i To Date Projected 15 General Fund Revenue $ 60,000,000 S 50,000,000 S40.000.000 $30,000,000 $20,000,000 $10.000,000 2022 2023 2024 2025 2026 2027 = Intergovernmental Revenue and Grants All Other Revenue —Expense-No Inflation, Personnel Services 4%,. Materials & Services 5%. —Expense-Inflation average CPI of 8% 'ANERN ORta 0 Southern Oregon Ur N Ift Sou's path to fiscal success Required Fiscal model: 4w 9 Managing Costs m Reimagining G ra nts lei Leveraging Diversifying Philanthropy Revenue SO Southern OREGON V UNIVERSITY How we got here 30% enrollment decline over 10 years (50% of revenue is tuition) 58% increase in government mandates • State funding below current service level - PERS retirement obligation jumps from $7M to $11M (projected over 5 years) • Healthcare cost jumps from $7M to $9.5M (projected over 5 years) Revenue 2022-23 $ 61.2 M 2023-24 $ 65.1 M 2024-25 $ 65.6 M Cost $ 62.5 M Deficit $ -1.3 M* $70.0M $-4.9M $73.7M $-8.1M 2025-26 $ 66.4 M $ 79.7 M $ -13.3 M 2026-27 $ 67.2 M $ 81.8 M $ -14.6 M *includes $3.6 M in one-time cuts 85% OF OUR COSTS ARE INVESTMENTS IN OUR PEOPLE so Southern OREGON U UNIVERSITY Solving for the future Reorganization, process improvement, and program adjustments across the university 2023-24 � 2024-25 2025-26 Revenue $ 64.6 M $ 67.1 M $ 67.8 M 81.83 FTE reduction 2026-27 $ 70.1 M 85% OF OUR COSTS ARE INVESTMENTS IN OUR PEOPLE 20 Ending % Fund Operating Cost Net Balance Revenue $63.3M $1.3M $6.5M 10.00% $64.7M $2.4M $8.9M 13.27% $66.5M $1.3M $10.2M 15.08% $68.7M $1.4M $11.7M 16.69% SO Southern OREGON 11J UNIVERSITY Aggressively pursue entrepreneurial revenue projects • Cascade Complex replacement project • Solar 21 • University District • Workday Training Center SO Southern OREGON VIUNIVERSITY �f.`1:I IA 01 0 41 i - f What are the issues that tourism is facing? -inflation and rising cost of travel are deterrents for some -Labor shortages affects hours, services and availability -There is a shifting seasonality in avoidance of wildfire season -The need to embrace the change of our visitor base is crucial What are the opportunities of Ashland's tourism? -Ashland's visitor has evolved and is coming for new reasons -This new visitor is more active, spontaneous and engaged -Continued investment in tourism is key to educate the new visitor -Visitor behaviors fuel and shape our amenities and industries -Visitors are potential future residents `� ASHLAND t '3yyJ II L P�� C) • 1 ASHLAND How does Ashland remain Strong? -Anchor Ashland as a basecamp for visitors to explore the region -Partner regionally to expand our culinary and cultural offerings -Develop our assets for families, music, culture and outdoors -Expand our spectrum of events and festivals -Continue to amplify our access to outdoors, wine, friendliness and walkability -Attract conferences, tours and groups for new reasons -Support Travel Ashland's branding to attract, educate and welcome these new visitors -Target and market to destinations we compete against such as Bend vc :r`jlFrs .9� ei • r*aaal sane Al!unwwo:) IDIldsoH Al!unwwo:) puaIgsd OJU asd Asante Health System employees -.. 011161,2023 Entity # Employees Asante Ashland Community Hospital 264 Asante Corporate/Asante Foundation 1,003 Asante Physician Partners 622 Asante Pogue Regional Medical Center 2,939 Asante Three Rivers Medical Center 1,131 Total headcount 5,959 Asante Fast Facts Asante Ashland Community Hospital Economic impact of AACH (FY22) ■ Supplies and purchased services: $121956,867 o Per day: $35,498 • Salaries and benefits: $48,802,621 o Per day: $133,705 Community benefit (FY21) ■ Charity care: $650,558 • Other government: $972,846 ■ Community programs: $790,537 • Cash and in -kind: $71,243 27 ■ Bad debt: $1,144,072 Open jobs at Asante: 538 (total) ■ Open jobs at AACH: 33 ■ Open jobs at APP-Ashland clinics:10 Asante employees who live in Ashland: 472 4r } „�, 1ho, Ashland Chamber of Commerce &a Ashland Chamber of Commerce Demographic Trends Strengths - Weaknesses - Opportunities - Threats Ashland Chamber Economic Diversification Strategy Action steps 29 - ` ff o00 ❑a❑ ASHLAND CHAMBER OF COMMER Initial opportunities that arose in our discussions with stakeholders and exploration into potential strategies included: ❑ Outdoor Recreation - Mountain and gravel biking, river sports, snow activities, snowmobiling, rock climbing ❑ Opportunity Sites - Croman Mill, Railroad Site, University District, Downtown, housing development ❑ Healthcare -- Senior care, functional medicine, wellness ❑ Remote Workers -Worker attraction, remote companies ❑ Arts and Culture - Digital arts, film industry, visual arts, culinary arts, creative direction, music, Downtown events ❑ SOU Programming - Health care, digital arts, sustainability ❑ Climate Adaptation - Green technology, renewable energy ❑ Diversity - Population demographics, retail and restaurant options ❑ Leadership - New change agents, climate leadership ❑ Small Scale Manufacturing - Device manufacturing, boutique agricultural products ASHLAND CHAMBER OF COMMER Moving further from current weaknesses to potential future threats to Ashland's economy, these themes emerged most often in our initial conversations: ❑ Climate Change: Summer smoke and wildfires, extreme heat, reduced snowpack, reduced water availability o Housing Affordability: Workforce and family friendly housing ❑ Enrollment Decline: Public K-12 schools and Southern Oregon University ❑ Land: Available supply and cost ❑ Natural Resources for Recreation: Camping areas and trails ❑ Downtown Vibrancy: Storefront vacancies, lack of nightlife ❑ Competition: Young workers relocating, walkable downtowns ❑ Aging: Customer base and local population ❑ Government Functionality: Development process ❑ Infrastructure: Lack of investment, stifled development ❑ Diversity of Visitor Amenities: Families, middle income households, people of color ❑ Childcare: Availability and affordability !o ASHLAND EcoNorthwest identified the most promising opportunities areas included the following: o Outdoor Recreation - Leverage access to regional attractions and year-round activities j Culinary Experiences - Food production and workshops with cooking and winemaking o Commercial Development - Business owner support and specialty districts • Healthcare - Prepare for increasing need of senior care, build healthcare workforce o Sustainability and Climate - Local renewable energy production and action on CEAP o Southern Oregon University - Program connections with students and businesses o Opportunity Sites - Downtown vibrancy and fostering a distinct University District Li Business Operations - Support resilient and sustainable business practices " Ashland's Greatest Opportunities It A • Establish Ashland as Base Camp Outdoor Recreation • Broaden Culinary Experiences • Extend Event Calendar • Expand Visitor Types • Improve Public Sector Collaboration • Support Specialty Districts • Establish "Small Batch" Ashland • Encourage Resilient/Sustainable Business Practices • Invest in Public Spaces • Diversify Downtown Visitors • Support Flexible Commercial Spaces • Create a Solar Downtown • Train World -Class Healthcare Workforce • Attract Remote Workers • Increase Workforce Housing and Childcare Supply • Align Employer Needs with Regional Labor CITY of What are our economic challenges and opportunities? ❑ Important trends or takeaways signaled from the last three years What are the most important next steps for addressing our challenges and opportunities? ❑ Long-term sustainability (20-50 years) What should our next "Better Together, "steps be? ❑ Three joint gateway or catalyst efforts. "�--'--V t 7 Y O F Thanks for Attending