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Fairview Urban Renewal Agency OKs $3.2 million in projects, approves budget and tax increment levy
Summary
The Fairview Urban Renewal Agency budget committee approved the agency's proposed fiscal year 2025-26 budget, including $3.2 million in capital purchases and a plan to levy 100% of available tax increment. Committee members asked for more line-item detail during deliberations and staff supplied a materials-and-services breakdown before the vote.
The Fairview Urban Renewal Agency budget committee unanimously approved the agency's proposed fiscal year 2025-26 budget Monday, voting also to levy 100% of the available tax-increment financing included in the plan.
The vote followed a public hearing with one speaker and a staff presentation that emphasized four major capital projects and a request for greater transparency on materials-and-services spending. Committee members paused for a short recess to allow staff to fetch line-item detail; after staff supplied a breakdown the committee moved forward with approval.
The agency will carry a beginning fund balance of about $3.7 million into the year. Staff told the committee the agency expects about $640,000 in debt payments for the fiscal year and roughly $930,000 in materials and services and contingency combined. The capital purchases in the proposed budget total about $3.2 million and include funding commitments toward four principal projects.
Those projects are: up to 20% toward construction of Well 10 (the total project cost is just over $6 million); a $750,000 railroad undercrossing at 220th Avenue (the agency is fronting construction costs while coordinating with Multnomah County and Union Pacific); about $100,000 proposed for underground stormwater treatment as part of the county's Safe Routes to School work on 220th Avenue; and a $900,000 placeholder for potential restriping and surface treatments along Halsey Avenue.
Staff said the agency currently is fronting the $750,000 construction cost for the railroad undercrossing and hopes the county will reimburse the agency; the county's staff, however, told the committee the county does not plan direct reimbursement for that construction because it's county right-of-way.
The committee also discussed the Food Cart Plaza (referred to in staff materials as the "fork" or "food cart plaza"). Staff reported roughly $330,000 a year in plaza rental revenue and explained the materials-and-services request includes roughly $200,000 for plaza operations, about $219,000 in administrative service charges to the city, $171,000 in city personnel charges, $300,000 proposed for a URA grant program to businesses, plus other smaller items such as insurance, audit and legal fees.
A resident, Steve Hasky, asked during public comment whether URA funds were being used to pay for police or fire services. Finance staff and the city manager answered that URA service charges are restricted to URA purposes and may cover the cost of employees or departmental time spent on URA work, public-works labor charged to URA when the department provides direct maintenance in URA areas, and similar URA-specific operating costs. They said URA funds are not transferred to the general fund to pay for law enforcement or fire services.
The committee also reviewed the URA's debt schedule and supplemental information. Staff noted auditors are completing a fiscal year 2021 audit and that some URA acquisitions (for example, the Food Cart Plaza acquisition) may not be fully reflected in that draft audit.
After staff answered questions and provided the requested breakdown of the $930,000 materials-and-services line, the committee voted to approve the proposed URA budget and to levy 100% of the available tax increment for the fiscal year.
The committee also directed staff to continue seeking grant opportunities for the railroad undercrossing and other projects, to continue weekly coordination with Union Pacific, and to ensure URA accounting clearly separates URA-restricted revenues and charges from the city's general fund. Staff said auditors had cautioned the agency not to operate URA enterprises as a profit-making business; if the Food Cart Plaza shows net profit in the audit, staff said the agency will need to change rates or operations so the URA does not retain ongoing profits in violation of state rules.
The committee closed the URA hearing and adjourned that portion of the meeting before starting the city budget hearing.
