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Philomath Urban Renewal Agency audit shows improved finances; council accepts 2024–25 reports
Summary
An independent auditor gave the Philomath Urban Renewal Agency a clean opinion for fiscal year 2024–25, reporting improved net position though a remaining deficit and a $2.1 million debt; the agency unanimously approved the financial and related reports and discussed early debt repayment as the agency approaches statutory sunset.
An independent auditor told the City of Philomath’s Urban Renewal Agency on March 9 that the agency’s financial statements for the year ended June 30, 2025, “present fairly in all material respects” and carried a clean opinion.
Brad Caseman, identified in the meeting as the auditor and partner in charge, summarized the fiscal-year results, saying total assets were about $1.9 million and total liabilities about $2.2 million. He said the agency’s unrestricted net position showed a deficit of roughly $305,000, an improvement from an approximately $1.2 million deficit in the prior year. Caseman attributed the change largely to property tax revenues of about $922,000 and investment earnings of about $120,000.
The auditor also summarized fund-level figures: the Urban Renewal Agency’s general fund balance was reported at about $1.8 million at year-end, with total revenues near $1.04 million and expenditures near $320,000; debt service for the year was reported at approximately $224,600.
Why it matters: Urban renewal districts collect tax increment to repay project-related debt and fund development activities. Agency officials said those revenues and the improving net position affect whether the district needs to be renewed or allowed to sunset, and whether its remaining debt can be paid early.
Discussion and outlook
Mike (agency staff) told the board the Urban Renewal Agency is approaching statutory sunset and that the body is considering options to reduce outstanding indebtedness. “This thing’s a cash cow right now... we’re earning 800,000 each year,” Mike said during the discussion, and said available cash might allow earlier debt reduction. During the meeting staff and the auditor described the outstanding debt as about $2.1 million and estimated there may be roughly $300,000–$500,000 available now to allocate toward future obligations.
The board discussed timing and mechanics: staff said the county tax-collection process would stop when the agency’s obligations are satisfied and that the council will make formal determinations about cessation of tax increment collections; staff also said an annual distribution report is available online and they would circulate it to council members.
Formal action
The board moved to accept and approve the 2024–25 financial and related reports for the Urban Renewal Agency. The chair announced the motion as moved by Councilor Andrade and seconded by Councilor Crocker; the chair then called for the vote and the reports were adopted unanimously.
The meeting record shows the board thanked staff and the auditor before adjourning the Urban Renewal Agency meeting at 7:13 p.m.; the city council meeting was scheduled to begin at 7:15 p.m.
Attributions: Statements and figures come from the auditor’s presentation and the agency discussion recorded at the March 9 meeting. Where a speaker is named in the transcript, the article uses that name and role as presented during the meeting.
