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County budgets SIP and gain‑share funds to capital projects and to backstop Hillsboro Hops stadium commitment
Summary
Budget materials show strategic‑investment (SIP) and gain‑share revenues allocated to capital projects, facility needs and a planned interfund loan to the Hillsboro Hops stadium; staff said several SIP and gain‑share sources are capped or forecast‑sensitive.
Washington County staff presented the proposed use of Strategic Investment Program (SIP) and gain‑share funds in the FY2025–26 budget. SIP receipts (payments from companies that receive property‑tax exemptions under SIP agreements) and gain‑share revenues (a share of state income tax tied to new/retained jobs) are discretionary county resources that the board has used for capital and one‑time investments.
Planned allocations and rationale: The draft budget programs SIP and gain‑share dollars for a variety of capital and one‑time needs, including: design work on potential jail expansion (estimated multi‑year design funding), building replacement and facility projects, IT capital, and bridge funding for prosecution services pending transition of some costs to the public‑safety levy. Staff said those assignments leave an operating contingency in SIP to address labor negotiation outcomes or other fiscal uncertainties.
Hillsboro Hops stadium financing: The county previously committed to contributing $8 million toward a stadium project in Hillsboro; staff explained the county will not have sufficient TLT (transient lodging tax) revenue to meet the timing of the obligation, so the FY2025–26 proposal uses SIP as an interim source (an interfund loan) with planned repayment from TLT revenues over a 10‑year period. Staff said other jurisdictions and the Hops organization are providing the majority of financing for the stadium and that the county’s $8 million is a defined, time‑limited commitment.
Revenue volatility and caps: Gain‑share revenue has a statutory cap for county retention and is subject to economic conditions. Staff said gain‑share revenue is currently projected to remain near the capped county share and that some prior gain‑share commitments concluded this fiscal year (freeing capacity). SIP revenue projections depend on company agreements and are subject to confidentiality and non‑disclosure constraints; staff said projection methods are conservative and account for recent agreement expirations.
Ending: Staff urged continued monitoring of gain‑share and SIP receipts and reported they will return with more detailed timing and repayment schedules for the stadium loan and other capital projects.
