Should Portland create the Sumner-Parkrose-Argay-Columbia Corridor Tax Increment Financing District Debt Service Fund?

The City of Portland ordains.Section 1. The Council finds: On October 30, 2024, the City Council approved Ordinance 191938, authorizing the Sumner-Parkrose-Argay-Columbia Corridor (“SPACC”) Tax Increment Financing (“TIF”) Plan. Oregon Revised Statutes 457.440 requires that funds raised for an urban renewal plan shall be raised by dividing property taxes as provided in Article IX, Section 1c, of the Oregon Constitution (“Tax Increment Revenues”) and shall be deposited into a special fund for each urban renewal plan to be used to pay the principal and interest on any indebtedness issued or incurred by the urban renewal agency to finance or refinance the urban renewal plan. The City issues bonds for all urban renewal plans on behalf of Prosper Portland to generate revenues for projects and pays debt service on the bonds on behalf of Prosper Portland. The financing plan for the SPACC TIF District relies upon the issuance of bonded indebtedness secured by the Tax Increment Revenues to fund investments within that urban renewal area. The repayment of the debt will be budgeted in the SPACC TIF District Debt Service Fund in compliance with ORS 457. NOW, THEREFORE, the Council directs: The SPACC TIF District Debt Service Fund (Fund 328000) is hereby created. The purpose of the fund is to achieve a proper matching of revenues and expenditures related to the newly created SPACC TIF District and to achieve compliance with Oregon Revised Statutes, which requires that a separate fund be created for each urban renewal area.The fund shall be managed by the Budget and Finance Service Area. Debt service expenditures are supported by yearly property tax collections. The fund has no reserve or contingency requirements.The Fund Statement of Purpose included as Exhibit A for the SPACC TIF District Debt Fund is hereby adopted. Section 2. The Council declares that an emergency exists in order that creation of the SPACC TIF District Debt Service Fund can be completed for inclusion in the FY 2025-26 budget; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.