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City outlines revenue shifts as data centers and enterprise zone agreements reshape Umatilla budget
Summary
Staff briefed the council and budget committee on revenue impacts from strategic investment program (SIP) payments, enterprise zone abatements, and a one-time drop in assessed value tied to data-center equipment changes; net general fund pressures were flagged for next year.
City finance staff told the Umatilla Council and budget committee that several large, ongoing revenue streams tied to data-center development and enterprise zone agreements will determine next year’s budget outlook.
Melissa, the finance director, said the city’s certified population rose to 8,256, which nudges per-capita state distributions higher. But she also said assessed value fell this year by about 6% and that the city expects about a 3% drop in property tax receipts next year tied largely to changes in Amazon’s personal property account as they swap equipment.
Staff summarized three major enterprise/SIP revenue sources: (1) strategic investment program (SIP) payments from data campus agreements (including an annual minimum payment that the city shares with the county), (2) enterprise zone payments from individual campuses (PDX 130, PDX 194, etc.), and (3) payment in lieu of taxes from data centers. SIP revenue was described as expected to remain flat at roughly $3.5 million; enterprise zone payments were projected to increase from $1.5 million to about $2.5 million in the coming year with new campus payments coming on line.
Melissa said those enterprise-related revenues will help offset decreases in traditional general-fund sources but warned the net general-fund projection shows a decline (staff cited an illustrative general fund decline of roughly $87,000 in the planning discussion). She noted transport-related block grants and franchise fees are relatively stable but highlighted the fiscal sensitivity to assessed-value shifts.
Staff said they will continue refining revenue estimates and present a proposed, balanced budget next month. Council members asked for ongoing updates; no fiscal decisions were made at the meeting.
