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Label:
Ordinance
Amend Intergovernmental Agreement with Multnomah County for the Revenue Division to administer the Preschool for All Program Tax
Passed
The City of Portland ordains.
Section 1. The Council finds:
- On November 3, 2020, Multnomah County (the County) voters approved Ballot Measure 26-214 (Preschool for All Program), which authorized the County to impose a personal income tax to fund universal, tuition free, high-quality preschool education for every three- and four-year-old residing within the County.
- The County does not have the capability to collect a personal income tax and contracted with the City of Portland Revenue Division to do so. The Revenue Division collects all regional business and personal income taxes for the City, the County and Metro.
- The Division implemented and is administering the County's PFA personal income tax since 2021 through a 10-year IGA authorized by Ordinance 190268.
- This Ordinance amends Section 4 (b) of the IGA, authorized by Ordinance 190268, to set the Maximum Annual Compensation from the County to the City for the 2025-2026 fiscal year at $9,850,000.00.
NOW, THEREFORE, the Council directs:
- The Revenue Division Director or Chief Financial Officer is authorized and directed to execute an amendment to the IGA for administrative services for the PFA personal income tax, in substantially the form attached to this Ordinance as Exhibit A.
- The Revenue Division is authorized to make budget adjustments in accordance with this IGA.
Official Record (Efiles)
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
Authorizes an amendment to the ten-year agreement between the City and County for administration of the County's PFA personal income tax to set the maximum Annual Compensation for the 2025-2026 fiscal year.
Financial and Budgetary Impacts
There is no financial impact to the City. The County will pay actual ongoing operational costs of the program in accordance with the budget included in the IGA.
Economic and Real Estate Development Impacts
Not applicable.
Community Impacts and Community Involvement
The joint administration of the County's PFA Tax and the Metro Supportive Housing Services Tax provides financial efficiencies for the City, County and Metro. Efficient administration enables all three governments to allocate more funds to things that directly benefit their citizens.
100% Renewable Goal
Not applicable.
Economic and real estate development analysis
Analysis provided by Prosper Portland
An Economic and Real Estate Development Impact Analysis was not submitted for this proposed action. Pursuant to City Council Resolution 37664, Prosper Portland staff has reviewed the action and agree that it does not require an Economic and Real Estate Development Impact Analysis.
Financial and budget analysis
Analysis provided by City Budget Office
This amendment updates the Intergovernmental Agreement with Multnomah County to set the maximum annual compensation the City may receive for administering the Preschool for All (PFA) personal income tax at $9.85 million for FY 2025–26, with future increases tied to CPI-W. Currently, $7.39 million is budgeted for this work in FY2025-26. Because the County reimburses the City for actual administrative costs, the Division will likely need to request the additional budget authority in the Spring TAO to align appropriations with the updated IGA cap and ensure sufficient spending authority for the year.
Document History
Document number: 2025-466
President's referral: Finance Committee