Decisions/2026-155
Ordinance2026-155

Should Portland authorize borrowings of not more than $95 million in anticipation of the Fire and Police Disability and Retirement Fund levy for FY 2026-27?

The proposed ordinance authorizes the City to issue short-term debt to finance the cash flow deficit of the Fire and Police Disability and Retirement ("FPDR") Fund until property tax revenues for FY 2026-27 are received. The amount of note proceeds permitted by the Ordinance will not exceed $95,000,000.Oregon Revised Statutes, Chapter 287A.180, authorizes the City to borrow money in anticipation of taxes and other revenues to be received by the City, and to pledge its anticipated taxes and other revenues to secure the notes, so long as the borrowings mature within 13 months after they are issued and do not exceed 80 percent of the amount the City has budgeted to receive in that fiscal year.If the full amount authorized by the Ordinance is issued, the notes will represent about 37 percent of the projected FY 2026-27 tax collections for the FPDR Fund levy. The City will repay the principal and interest on the notes no later than June 30, 2027.The issuance of short-term debt to fund the FPDR Fund is an annual occurrence because of the timing of property tax revenues (which begin in November) vs. ongoing monthly benefit payments paid from the fund. The mismatch in revenues and expenses in the first few months of each fiscal year creates a temporary deficit in cash resources, which the City has historically solved by either issuing short-term debt or funding through an interfund loan, whichever is deemed to be most advantageous. For FY 2026-27, issuing short-term debt externally is the more economic alternative vs. a City interfund loan.

Official impact statement
See the official legal title

Authorize borrowings of not more than $95 million in anticipation of the Fire and Police Disability and Retirement Fund levy for FY 2026-27

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01 · Understand it

What this proposal would actually do.

Plain-language orientation first. Every substantive statement below links to its official basis.

What would change

The proposed ordinance authorizes the City to issue short-term debt to finance the cash flow deficit of the Fire and Police Disability and Retirement ("FPDR") Fund until property tax revenues for FY 2026-27 are received. The amount of note proceeds permitted by the Ordinance will not exceed $95,000,000.Oregon Revised Statutes, Chapter 287A.180, authorizes the City to borrow money in anticipation of taxes and other revenues to be received by the City, and to pledge its anticipated taxes and other revenues to secure the notes, so long as the borrowings mature within 13 months after they are issued and do not exceed 80 percent of the amount the City has budgeted to receive in that fiscal year.If the full amount authorized by the Ordinance is issued, the notes will represent about 37 percent of the projected FY 2026-27 tax collections for the FPDR Fund levy. The City will repay the principal and interest on the notes no later than June 30, 2027.The issuance of short-term debt to fund the FPDR Fund is an annual occurrence because of the timing of property tax revenues (which begin in November) vs. ongoing monthly benefit payments paid from the fund. The mismatch in revenues and expenses in the first few months of each fiscal year creates a temporary deficit in cash resources, which the City has historically solved by either issuing short-term debt or funding through an interfund loan, whichever is deemed to be most advantageous. For FY 2026-27, issuing short-term debt externally is the more economic alternative vs. a City interfund loan.

Official proposal and impact statement
What would stay the same

The reviewed sources do not clearly identify every existing policy, service, contract, or obligation that would remain unchanged.

Official matter record
Who may be affected

This is an administrative action taken to provide funding to meet the cash flow deficit of the FPDR Fund until property taxes for FY 2026-27 are collected beginning in November 2026. There is no community impact or involvement anticipated.

Official community impact statement
What happens next

Passed

Latest official agenda appearance
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Financial implications

Principal and interest will be repaid during the same fiscal year with FPDR Fund revenues, which is comprised of the dedicated FPDR Fund property tax levy. Based on current market conditions, total interest cost is projected to be roughly $2.7 million, however, because the proceeds are expected to earn interest at a more favorable rate, net interest cost is the more accurate measurement and is projected to be about $300,000 in total.

Official financial impact statement
Open questions
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  • What implementation evidence will show whether the intended result occurred?
Can residents still participate?

Official testimony on this decision has closed. Residents can still contact their district Councilors about implementation and follow-up.

Official Council agenda
03 · Verify it

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Official documents1 sources
Final legal actionOrdinance 192175

The operative official record after Council action.

Open at Portland.gov
Read the full official text

The City of Portland ordains.Section 1. The Council finds:The Fire and Police Disability and Retirement Fund of the City of Portland (the "City") will experience a cumulative cash flow deficit during fiscal year 2026-27 due to the timing of collections of property taxes.Oregon Revised Statutes Section 287A.180 authorizes the City to borrow money in anticipation of taxes or other moneys to be received by the City in fiscal year 2026-27, and to pledge its anticipated taxes and other revenues to secure those borrowings, so long as the borrowings mature within 13 months after they are issued and do not exceed 80 percent of the amount the City has budgeted to receive in that fiscal year.The City will budget to receive approximately $250.9 million of ad valorem taxes for the Fire and Police Disability and Retirement Fund in fiscal year 2026-27.Federal law permits the City to finance its cashflow deficit in the Fire and Police Disability and Retirement Fund with tax-exempt obligations, and to avoid payment of arbitrage rebate in connection with the borrowings, if within six months after the obligations are issued, the City has expended all amounts it borrowed for cashflow purposes.The City adopts this Ordinance to authorize the City to borrow up to $95,000,000 in anticipation of the Fire and Police Disability and Retirement Fund levy for fiscal year 2026-27.NOW, THEREFORE, the Council directs:Borrowings Authorized. The City hereby authorizes borrowings in an aggregate principal amount of not more than $95,000,000 to finance its deficit in the Fire and Police Disability and Retirement Fund in anticipation of the receipt of its Fire and Police Disability and Retirement Fund levy for fiscal year 2026-27, and to pay the costs of the borrowings. The borrowings shall mature not later than thirteen months after they are issued, shall be issued under the authority of ORS 287A.180, and may be in the form of one or more notes, lines of credit, or other obligations. In connection with these borrowings, the City Administrator, Chief Financial Officer, Treasurer, Debt Manager, or the person designated by the City Administrator to act as an Authorized Officer under this Ordinance (any of whom is referred to in this Ordinance as an "Authorized Officer") may, on behalf of the City and without further action by the Council:Borrow money from one or more commercial banks in the form of notes, lines of credit or other obligations, or sell notes or other obligations in the public securities markets by negotiated sale or competitive bid;Participate in the preparation of, authorize the distribution of, and deem final any disclosure statements or other documents that are desirable to facilitate the borrowings;Establish the final principal amounts, payment dates, interest rates, and other terms of the borrowings within the limitations of this Ordinance;Pledge the City's full faith and credit, ad valorem taxing power, and any other City taxes and revenues to pay the borrowings;Provide that the borrowings bear interest that is excludable from, or includable in, gross income under the federal internal revenue code;Covenant to comply with the requirements of federal law that are necessary for interest on tax-exempt borrowings to be excludable from gross income under the federal internal revenue code, or to receive federal income tax subsidies in connection with the borrowings;Negotiate the terms of, and execute and deliver any documents to carry out the borrowings authorized by this Ordinance and take any other action in connection with the borrowings which the Authorized Officer finds will be advantageous.

Meetings, motions, amendments, and votes2 meetings · 1 votes
Final Council action · May 13, 202612 yes · 0 no

Final action on 2026-155: Authorize borrowings of not more than $95 million in anticipation of the Fire and Police Disability and Retirement Fund levy for FY 2026-27

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Source record
First discovered
Aug 13, 2026, 1:05 PM PDT
Last checked
Sep 13, 2026, 2:24 AM PDT
Evidence hash
357f657e9a89235f
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Append-only timeline
  1. SOURCE UPDATED

    Passed

  2. DOCUMENT PUBLISHED

    Observed in the official source.

  3. Council Action

    Passed

  4. Council Action

    Passed to second reading