*Create the 82nd Avenue 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 191936, authorizing the 82nd Avenue 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 82nd Avenue 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 82nd Avenue TIF District Debt Service Fund in compliance with ORS 457.
NOW, THEREFORE, the Council directs:
- The 82nd Avenue TIF District Debt Service Fund (Fund 326000) is hereby created. The purpose of the fund is to achieve a proper matching of revenues and expenditures related to the newly created 82nd Avenue 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 82nd Avenue TIF District Debt Fund is hereby adopted.
Section 2. The Council declares that an emergency exists in order that creation of the 82nd Avenue 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.
Exhibits and Attachments
An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved
in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)
Passed by Council
Auditor of the City of Portland
Simone Rede
Impact Statement
Purpose of Proposed Legislation and Background Information
The proposed legislation creates the 82nd Avenue TIF District Debt Service Fund. In October 2024, the City Council approved Ordinance 191936, authorizing the 82nd Avenue Tax Increment Financing (TIF”) Plan.
Oregon Revised Statutes 457.440 requires that funds 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 financing plan for the 82nd Avenue TIF District relies upon the issuance of bonded indebtedness secured by the Tax Increment Revenues to fund investments within that urban renewal area. The proposed legislation creates the 82nd Avenue TIF District Debt Service Fund in compliance with ORS 457 and will be used to budget repayment of debt issued by the City on behalf of Prosper Portland for the 82nd Avenue TIF District.
Financial and Budgetary Impacts
There is no financial impact associated with establishing the fund. This action is necessary for budget development to move forward.
Economic and Real Estate Development Impacts
There are no economic and real estate development impacts associated with establishing the fund.
Community Impacts and Community Involvement
This is an administrative action taken to authorize creation of the debt service fund. There is no community impact or involvement anticipated.
100% Renewable Goal
Not applicable
Financial and Budget Analysis
Analysis provided by City Budget Office
No Fiscal impact.
Document History
Document number: 2025-111