Hillsboro holds 'Hillsboro 101' work session on economic incentives, public finance and budget

On Jan. 21, 2025, Hillsboro city staff delivered a “Hillsboro 101” work session that reviewed how state and local tax rules, economic incentives and urban renewal affect the city’s budget and long-term finances.

The presentation, led by Suzanne Lanine, the city’s chief financial officer, and Dan Diaz of economic development, framed why Hillsboro uses targeted incentives and how those tools interact with the city’s existing tax limits and revenue streams.

Lanine told the council that "Oregon has only two legs of the stool when it comes to how we fund, state government and local government. We have an income tax, and we have a state of property taxes, and we do not have a general sales tax, across the state of Oregon." She said that reality shapes both where businesses choose to locate and which kinds of taxes and incentives are most effective for the city.

Nut graf: The briefing tied several threads together. State ballot measures adopted in the 1990s (Measures 5, 47 and 50) limit property-tax growth and establish a permanent city rate; those limits make the city more reliant on growth, large capital investments and locally approved levies. To attract capital‑intensive firms and to fund infrastructure, Hillsboro makes regular use of strategic investment program (SIP) agreements, enterprise zones and urban renewal tax‑increment financing, and…