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Philomath Urban Renewal Agency committee OKs preliminary FY2026'27 renewal budget and tax-division request
Summary
The Urban Renewal Agency reviewed a preliminary renewal budget and voted to request the maximum tax-division revenues allowed under Article IX, Section 1(c) of the Oregon Constitution; staff warned that bond defeasance and tied funding streams will require counsel to unwind.
The Philomath Urban Renewal Agency (URA) began its meeting at 5:32 p.m. June 22 and recommended a preliminary URA budget for FY2026'27, then approved a motion requesting the maximum revenue through division of taxes under Article IX, Section 1(c) of the Oregon Constitution.
A committee member moved that the Budget Review Committee approve a preliminary URA budget with total requirements of $3,576,010; the committee voted in favor on voice vote. During discussion staff and members identified roughly $3.5 million in outstanding URA-related debt and noted a current new fund balance of roughly $2.9 million; staff said the net remaining balance could be used to reduce the district's obligations but cautioned that some bonds are structured with multiple funding sources and would require bond counsel to "defease" or otherwise untie the obligations.
Speaker 13 formally moved adoption of a resolution that the budget review committee "hereby approve a request for the maximum amount of revenues that may be raised by dividing the taxes under section 1 c, article 9 of the Oregon constitution." The motion passed by voice vote.
What it means: When the urban renewal district sunsets, the incremental tax shares now diverted to URA would return to the city and other taxing districts. Staff estimated the city's share is roughly $318,000 per year under current assessments, an amount members described as material to the general fund.
Follow-up: Staff said they will consult bond counsel to determine how and when bonds that have multiple funding ties could be defeased or untied so that the district can realize the projected fiscal benefit when the URA ends. The URA portion of the session ended before the City Budget Review Committee convened at 5:44 p.m.
