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Council adopts policy guiding Strategic Investment Program revenue use for data-center agreement
Summary
The Dalles adopted a policy to allocate Strategic Investment Program (SIP) revenues from a data-center agreement with Design LLC: reserving the initial payment for special projects, using tax revenues for general operations, prioritizing community service fees for capital reserves, and holding guaranteed annual payments to support master-plan infrastructure.
The Dalles City Council adopted a resolution on Dec. 16 setting budget guidance for Strategic Investment Program (SIP) revenues tied to the city’s agreement with Design LLC for up to two data centers.
City Manager summarized the four revenue streams under the agreement: a one-time initial payment of $3,000,000 per data center, property-tax receipts calculated via Business Oregon guidelines, a community service fee equal to 25% of the entity’s tax savings in a year, and a guaranteed annual payment determined by a formula. He recommended reserving the initial payment in a Special Enterprise Reserve Fund for future special projects, treating tax revenue as general fund receipts to support ongoing operations, using community service fee receipts first to ensure the city’s capital reserve for key facilities is sufficient, and reserving guaranteed payments to support master-plan projects and mitigate future water-rate increases.
The staff report referenced robust joint work sessions with Wasco County and community engagement (365 survey responses) that informed priorities such as school improvements, infrastructure, public safety and housing. Councilor Long moved to adopt the resolution (listed in the packet); Councilor Richardson seconded and the motion carried unanimously.
Next steps: the council’s guidance will frame the FY 2025–26 budget process and how SIP revenues are reserved and allocated when received.
