This legislation authorizes temporary interfund loans from the Solid Waste Management Fund to the Recreational Cannabis Tax Fund. The loaned funds will not exceed $800,000 and will be repaid no later than June 30, 2026.Since Fiscal Year 2022-23, the recreational cannabis tax revenues have declined. The City has responded by making reductions to allocations as necessary, including by an additional 22% beginning in FY 2024-25 to balance the RCT Fund's five-year forecast, halting inflationary increases for RCT resources supporting ongoing programs, and planning for a one-time reduction of approximately 20% in the fund for Fiscal Year 2025-26. These planned reductions in ongoing allocations of RCT Fund revenues are expected to put the RCT Fund budget in a sustainable and balanced position over the coming five years. The RCT Fund is projected to have a one-time funding gap in Fiscal Year 2024-25 as a result of a combination of significant revenue declines and City Council's approval of a large one-time allocation related to prior year carryovers of unspent allocations. The resulting unfunded liability is projected to be approximately $800,000, and additional funds are needed to ensure that the RCT Fund remains in balance at fiscal year-end.Oregon State Local Budget Law requires that fund balances not be negative at the end of a fiscal year. GAAP requires that governmental funds not end the year with negative cash assets. An interfund loan can provide resources necessary to comply with Local Budget Law and GAAP. Per Oregon Local Budget Law, the City may loan money from one fund to another for operating purposes for up to one fiscal year.The Solid Waste Management Fund has sufficient resources to lend monies to the RCT Fund temporarily until sufficient tax revenues are received to repay the loan. Loaned funds from the Solid Waste Management Fund will be repaid with interest until no later than June 30, 2026, the maturity date of the loan.
Official proposal and impact statementShould Portland authorize a temporary operating loan from the Solid Waste Management Fund to the Recreational Cannabis Tax Fund of not more than $800,000 to provide…
This legislation authorizes temporary interfund loans from the Solid Waste Management Fund to the Recreational Cannabis Tax Fund. The loaned funds will not exceed $800,000 and will be repaid no later than June 30, 2026.Since Fiscal Year 2022-23, the recreational cannabis tax revenues have declined. The City has responded by making reductions to allocations as necessary, including by an additional 22% beginning in FY 2024-25 to balance the RCT Fund's five-year forecast, halting inflationary increases for RCT resources supporting ongoing programs, and planning for a one-time reduction of approximately 20% in the fund for Fiscal Year 2025-26. These planned reductions in ongoing allocations of RCT Fund revenues are expected to put the RCT Fund budget in a sustainable and balanced position over the coming five years. The RCT Fund is projected to have a one-time funding gap in Fiscal Year 2024-25 as a result of a combination of significant revenue declines and City Council's approval of a large one-time allocation related to prior year carryovers of unspent allocations. The resulting unfunded liability is projected to be approximately $800,000, and additional funds are needed to ensure that the RCT Fund remains in balance at fiscal year-end.Oregon State Local Budget Law requires that fund balances not be negative at the end of a fiscal year. GAAP requires that governmental funds not end the year with negative cash assets. An interfund loan can provide resources necessary to comply with Local Budget Law and GAAP. Per Oregon Local Budget Law, the City may loan money from one fund to another for operating purposes for up to one fiscal year.The Solid Waste Management Fund has sufficient resources to lend monies to the RCT Fund temporarily until sufficient tax revenues are received to repay the loan. Loaned funds from the Solid Waste Management Fund will be repaid with interest until no later than June 30, 2026, the maturity date of the loan.
Official impact statementSee the official legal title
*Authorize a temporary operating loan from the Solid Waste Management Fund to the Recreational Cannabis Tax Fund of not more than $800,000 to provide interim funding for approved carry-over allocations and avoid negative fund balance at fiscal year-end
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Official matter recordThis proposal concerns budget, taxes & finance and requires action through Portland’s public legislative process.
Official matter classification and recordThis is an administrative action to provide a temporary loan to the RCT Fund. No direct community impact or involvement is anticipated.
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Passed · 12–0
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Final action on 2025-229: *Authorize a temporary operating loan from the Solid Waste Management Fund to the Recreational Cannabis Tax Fund of not more than $800,000 to provide interim funding for approved carry-over allocations and avoid negative fund balance at fiscal year-end
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The RCT Fund will repay the Solid Waste Management Fund borrowed funds with interest no later than June 30, 2026. The interest rate will be equal to the City's Investment Portfolio monthly average yield, resulting in a neutral economic impact to the Solid Waste Management Fund. The loan may be prepaid in whole or in part at any time. Partial prepayments of the interfund loan, if any, will be applied first to accrued interest on unpaid principal and then to the outstanding principal balance.If an interfund loan from the Solid Waste Management Fund to the RCT Fund is approved by the City Council, resources and expenditures relating to the loan will be included in the Over Expenditure Ordinance for the City's FY 2024-25 budget.
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Open at Portland.govRead the full official text
The City of Portland ordains.Section 1. The Council finds:The Recreational Cannabis Tax (“RCT”) Fund was created to budget and record activities funded with recreational cannabis tax revenues to support purposes identified in Section 6.07.145 of the City Code, including public safety, drug and alcohol treatment, support for neighborhood small businesses, and support communities disproportionately impacted by cannabis prohibition.Since Fiscal Year 2022-23, the recreational cannabis tax revenues have declined. The City has responded by making reductions to allocations as necessary, including by an additional 22% beginning in FY 2024-25 to balance the RCT Fund's five-year forecast, halting inflationary increases for RCT resources supporting ongoing programs, and planning for a one-time reduction of approximately 20% in the fund for Fiscal Year 2025-26. These planned reductions in ongoing allocations of RCT Fund revenues are expected to put the RCT Fund budget in a sustainable and balanced position over the coming five years.The RCT Fund is projected to have a one-time funding gap in Fiscal Year 2024-25 as a result of a combination of significant revenue declines and City Council's approval of a large one-time allocation related to prior year carryovers of unspent allocations. The resulting unfunded liability is projected to be approximately $800,000, and additional funds are needed to ensure that the RCT Fund remains in balance at fiscal year-end.GAAP does not allow for governmental funds to end the fiscal year with negative cash.Oregon Local Budget Law (ORS 294.468) requires that fund balances not be negative at the end of a fiscal year.The Solid Waste Management Fund has sufficient resources to lend monies to the RCT Fund temporarily until sufficient tax revenues are received to repay the loan. Loaned Solid Waste Management Fund revenues will be repaid with interest until no later than June 30, 2026, the maturity date of the loan.If a loan from the Solid Waste Management Fund to the RCT Fund is approved by the City Council, resources and expenditures relating to the loan will be included in the City’s FY 2024-25 approved budget.NOW, THEREFORE, the Council directs:The City hereby authorizes a temporary interfund loan in an aggregate principal amount of not more than $800,000 from the Solid Waste Management Fund to the Recreational Cannabis Tax Fund in accordance with City financial policy FIN 2.18 and the terms shown in Exhibit A.Section 2. The Council declares that an emergency exists in order to avoid negative cash balances in the RCT Fund at the end of FY 2024-25, which would violate State budget law and GAAP; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.
Meetings, motions, amendments, and votes2 meetings · 2 votes
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Motion to send the Ordinance, document number 2025-229, to the full Council with the recommendation that it be passed: Moved by Novick and seconded by Pirtle-Guiney. (Aye (5): Pirtle-Guiney, Novick, Green, Avalos, Zimmerman)
Final Council action · Jun 18, 202512 yes · 0 no
Final action on 2025-229: *Authorize a temporary operating loan from the Solid Waste Management Fund to the Recreational Cannabis Tax Fund of not more than $800,000 to provide interim funding for approved carry-over allocations and avoid negative fund balance at fiscal year-end
Meeting-level motion or recommendation · Jun 9, 20255 yes
Motion to send the Ordinance, document number 2025-229, to the full Council with the recommendation that it be passed: Moved by Novick and seconded by Pirtle-Guiney. (Aye (5): Pirtle-Guiney, Novick, Green, Avalos, Zimmerman)
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- First discovered
- Aug 13, 2026, 1:13 PM PDT
- Last checked
- Sep 14, 2026, 2:22 AM PDT
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- 85d8ec9076eb7a60
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Passed
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Passed
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Referred to City Council