CommEcDev---FYFP-Combined — Intro — Part 2 of 6

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Bureau of Planning and Sustainability Portland Clean Energy Community Benefits Fund FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources CY Estimate Plan Plan Plan Plan Plan Beginning Fund Balance 668,452,345 697,963,593 581,004,448 405,067,959 201,169,122 91,992,151 Taxes 193,800,000 197,676,000 201,629,520 205,662,110 209,775,353 213,970,860 Miscellaneous 14,470,177 25,066,963 26,871,598 22,078,169 15,392,582 7,644,427 Resource Total 876,722,522 920,706,556 809,505,567 632,808,239 426,337,057 313,607,438 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Expenditures CY Estimate Plan Plan Plan Plan Plan Personnel 23,653,219 32,097,157 40,587,998 41,366,724 46,387,512 16,902,527 External Materials and Services 107,906,467 213,924,904 290,107,249 327,915,380 237,116,127 126,165,603 Internal Materials and Services 9,759,041 13,497,964 16,297,235 19,802,665 20,697,212 7,953,397 Capital Outlay 27,289,695 41,453,081 41,002,306 24,723,887 11,868,234 4,209,462 Debt Service 2,034,250 2,037,000 - - - - Fund Transfers - Expense 8,116,256 36,692,002 16,442,820 17,830,461 18,275,821 4,583,891 Contingency 697,963,593 581,004,448 405,067,959 201,169,122 91,992,151 153,792,557 Expense Total 876,722,522 920,706,556 809,505,566 632,808,239 426,337,056 313,607,437 Planned FTE Total 45.50 56.00 64.00 64.00 64.00 64.00 CY Estimate: Bureaus should provide current year-end projections or estimates. FY 2025-26. Provide the financial plan data for the upcoming budget year. For most bureaus, this should match what is being proposed in that fund through budget development. FY2026 through FY2030 Plan. Provide financial plan data for years 2-5 of the fund’s forecast.

Bureau of Planning and Sustainability Solid Waste Management Fund FY 2025-26 Plan Overview The Solid Waste Management Fund supports multiple efforts of the Bureau of Planning and Sustainability (BPS), as well as Portland Permitting & Development’s (PP&D) Residential Nuisance Abatement program, and the Impact Reduction Program. • The Solid Waste & Recycling Division oversees collection services and programs that help keep the city clean, materials and waste policy, and outreach, education and technical assistance around recycling, waste reduction and sustainable consumption: o The Waste Collection Program regulates and administers the garbage, recycling and composting collection system for residents and businesses in Portland. This team carries out City Council’s policy direction to reduce waste, increase recycling and composting, and maintain high-quality collection services at reasonable rates. It administers the public trash can program, providing and servicing sidewalk trash cans downtown and in business districts citywide. BPS is expanding this program to business districts in NW and SW outside downtown. o Through technical assistance, partnerships, and education, the Sustainable Consumption & Production Team ensures Portland’s compliance with the Opportunity to Recycle Act, supports businesses in required waste reduction practices, and helps Portlanders achieve prosperity, health, and resilience by reducing waste, conserving resources and reducing emissions at home and work. • The Climate, Energy, & Sustainable Development Program provides analysis and pilot projects, policies, and programs to advance City goals for an equitable, low-carbon community. • The Impact Reduction Program is managed by the Office of the City Administrator and provides cleanup services on public properties and rights-of- way in response to homelessness. • The SWMF also supports PP&D Waste-Related Enforcement work enforcing nuisance dumping and garbage service requirements that apply to landlords. Solid Waste Management Fund revenue sources include residential franchise fees, commercial tonnage, and permit fees. • Residential franchise fees are set at 8% of total revenues collected by haulers serving single-family through four-unit complexes.

• Commercial tonnage fees are currently set at $16.60/ton of garbage disposed by haulers serving multifamily and business customers. We anticipate an increase in FY 2025-26 to $17.60/ton, explained below--this reflects a reduced projection over prior years which projected an $18.60 / ton fee in FY 25-26.

Revenue Assumptions The minimum fund balance level is set at $500,000 to provide an operating reserve and contingency in the case of an emergency such as a natural disaster that would require immediate clean-up of debris. Maintaining a significantly higher balance than $500,000 is appropriate given the ongoing operational commitments within this fund. The current fund balance is separated into residential, commercial, and combined sources. Combined sources are from IGAs, grants and miscellaneous revenues that are applied to either residential or commercial programs. BPS increased the commercial tonnage fee by $1.00 in FY 2024-25. In FY2025-26, the commercial tonnage fee was expected to increase by $2.00. BPS plans to recommend a smaller increase of $1 in the upcoming rate process to maintain pace with increased disposal costs, ongoing investments in the Impact Reduction Program, and another round of expansion in the public trash can program. No increases are proposed for the 8% franchise fee within the residential collection system. Expenditure Assumptions The following programs and issues impact the fund’s five-year forecast: Clean City We oversee collection of garbage from our nearly 1,500 public trash cans located across much of the city. So far, the program has expanded in East, Southeast, North, and Northeast Portland. We are currently expanding in Northwest, and next year in South/Southwest. New contracts for the Pearl District and Downtown have recently been completed. We also use our contracts to serve some PBOT-owned cans. Since 2019 this program has expanded around a special procurement authorized by City Council that allows BPS to create capacity-building opportunities for certified minority- and woman-owned companies via public waste collection contracts. This has allowed the program to procure significant services from multiple COBID service providers and it continues to be used for program expansion. Initially BPS projected an interagency agreement of $1,159,237 with the Office of the City Administrator to undertake solid waste cleanup activities and dispose of waste on public properties and rights-of-way through the Impact Reduction Program (IRP) for FY25/26. A one-time additional $1,000,000 has been added to the budget and SWMF forecast, increasing the amount for FY25/26 to $2,159,237. Solid waste related costs, such as cleanup crew costs and disposal fees, are eligible for funding from the Solid Waste Management Fund. City Council authorized increases in the commercial tonnage

fee since FY 2018-19 have helped to provide funds for this effort in addition to the expansion of the public trash program. Since FY 2020-21, the interagency agreement’s annual dollar amount has been calculated to include an inflationary adjustment. Policy Commitments The Regional Waste Plan, Opportunity to Recycle Act, and Recycling Modernization Act are driving increased expectations for policy and program development, technical assistance, and education around Portland’s waste collection systems, waste reduction, recycling, and sustainable materials management. Rate Stabilization In keeping with the franchise agreement that governed residential waste collection until early 2024, approximately $1.4M from the SWMF will be expended in coming years to mitigate collection fee increases. BPS proposes to use this to offset costs associated with offering a low-income discount to qualifying residents. Other investments (e.g. the Climate, Energy & Sustainable Development Program) and increased overhead and payments to fund internal service Bureaus and functions also impact the fund’s five-year forecast. Expenditure Risks to the Forecast and Confidence Level Program and operating costs have continued to increase. Portland businesses continue to experience fluctuating economic activity, thus generating uncertainty in the tons of solid waste that are subject to the commercial tonnage fee. Though the forecast projects greater economic activity and more solid waste being generated, continued slowing of the economy would reduce revenue for the program. New, unanticipated, and unbudgeted projects may emerge as priorities from the community, or City Council that require reallocation of existing resources. For example, BPS is implementing the City’s mandate for business food scrap composting, resulting in increased costs. Implementation of the Recycling Modernization Act, and the rollout of curbside battery collection service, or investments in new waste reduction initiatives, or to improve services provided to multifamily community members, may also create new demands on the SWMF. Confidence level: Medium

FY 2025-26 Requested Budget Five Year Plan Fund & Bureau Name: Spectator Venues and Visitor Activities Fund, Office of Community and Economic Development - Deputy City Administrator. Plan Overview The following is a discussion of the major financial issues the Spectator Venues and Visitor Activities Fund (SVVAF) will address over the next five years. Background Rose Quarter At the Rose Quarter, the SVVAF collects revenues and makes expenditures according to the terms of the Veterans Memorial Coliseum Operating Agreement and Arena Operating Lease (Moda Center). Both agreements were extended in August 2024 and will now expire in October 2030, if not further extended. The negotiated lease extension made several changes to the operational arrangement at the Rose Quarter:  Ownership of the Moda Center was transferred to the City for $1.  The City purchased a privately-owned parcel of land under a portion of the Moda Center for $7.1 million.  Beginning in FY2025-26 and continuing through FY2029-30, the City will reinvest the revenues derived from Trail Blazers home games into capital improvement projects at the Moda Center with the following conditions: the private operators must match the contribution 1:1, and the City’s investments may only be used for projects listed on a pre-approved and mutually agreed upon Capital Improvement Plan.  Rip City Management continues to operate both the Moda Center and the Veterans Memorial Coliseum. Other financial terms of the agreements remain essentially unchanged from the previous Arena Ground Lease and related documents. Because the changes proposed in the term sheet had not yet been finalized or approved by City Council at the time of budget preparation, the program’s FY2024-25 budget did not include the new obligations. A series of adjustments were made through the Fall BMP adjustment process to reflect the new agreements. Construction began on renovations at the Veterans Memorial Coliseum in summer 2024 and will continue in phases through summer 2026. Repair, replacement, and capital improvement costs associated with operating the aging arena have risen steadily and averaged $1 million per year over the past five years. The renovation should reduce ongoing repair costs and increase popularity and profitability at the facility. Approximately $57 million (including interest earned) in bond financing has been secured for the project. Annual debt service of $4.3 million on these bonds is paid for by the Visitor Facilities Trust Account (funded by dedicated tourism taxes). This bond sale

FY 2025-26 Requested Budget Five Year Plan was approved by the City Council in January 2024 and bonds were successfully sold in March 2024. The SVVAF is also contributing up to $6 million over several years in soft costs to the project. To allow for construction, the building was closed during summer 2024 and will again be closed in summer 2025. The renovation scope includes full seating replacement, extensive restroom expansion and renovation, improvements to rigging systems, a renovated scoreboard, as well as major upgrades to critical mechanical systems including electrical, emergency, plumbing and HVAC. The available resources are not sufficient to address all needs at the historic arena. Additional resources may need to be identified in future years to fully address building needs and maximize its potential. In addition to costs associated with repairs and improvements to the Veterans Memorial Coliseum, the SVVAF spends on repairs, replacements, and improvements at the Rose Quarter Plaza and City-owned Rose Quarter Garages. Modest budgets for additional major maintenance and repair/replacement costs are included in each of the next five years. In FY2023-24 the City plans invested $350k in security enhancements at the garages. In FY2025-26, per the terms of the new Arena Operating Lease, the City will invest all ticket user fee and parking revenues received from Portland Trail Blazers games into eligible capital projects at the Moda Center. These funds must be matched 1:1 by Rip City management, and only projects identified on the Capital Expenditure Plan are eligible. For FY2025-26, this amount is projected to be approximately $4.3 million. Stadium Under the Stadium Operating Agreement, the SVVAF is responsible for a portion of most repairs and some capital improvements at Providence Park, including a fixed annual contribution to fund periodic artificial turf replacement. The east side expansion of the stadium opened in June 2019 with 4,000 new seats in three new levels above the existing concourse and seating bowl. The approximately $75 million design and construction cost of the project was privately funded. To help defray the cost of the project, City Council agreed to exempt the operators from certain payments of ticket fees they otherwise would have paid to the SVVAF for a period of several years. Those exemptions began to expire in 2022 and ticket revenues are again being collected by the City. The remaining exemptions will expire at the end of 2025 leading to modest increases in ticket revenues paid to the City in FY2026-27. In FY2023-24, the City contributed $350k to the cost of necessary modifications to the stage area at the south end of the field to allow for the return of concerts to the venue. The two concerts held during 2024 generated approximately $500k in additional revenues to the SVVAF. Annual repair, replacement and capital costs at the stadium have averaged just under $600k over the past five years. As the stadium ages and it is now 25 years since the

FY 2025-26 Requested Budget Five Year Plan major renovations of the west side of the facility were completed, annual repair and replacement costs are expected to rise significantly in the coming years. Portland’5 The SVVAF Fund Statement was established in 2015 and allowed the program to spend resources on administration and oversight of the three City-owned theater buildings operated by Portland’5 under the umbrella of Metro: Antoinette Hatfield Hall, Arlene Schnitzer Concert Hall, and Keller Auditorium. The SVVAF receives no funding from Portland’5, nor does it contribute to capital projects without specific City Council Approval. The City’s annual special appropriation for Portland’5 operations (~$1.2M in FY2024-25) is required by the operating agreement with Metro and comes from the City’s General Fund. In March 2024, City Council reassigned the oversight of City-owned performing arts venues to the newly created City Office of Arts and Culture located in the Office of the Deputy City Administrator for Vibrant Communities. As such, the SVVAF FY2025-26 budget does not include budget for Portland’5 oversight. Travel & Tourism The Spectator Venues Program serves as the City’s staff liaison to the sports, travel and tourism industry. In this capacity, staff works closely with Travel Portland and Sport Oregon who provide destination marketing and promotion services to the City helping to bring travelers and events to our region benefiting the City’s venues, the local economy, the SVVAF, and the City’s General Fund by generating transient lodging taxes. The Program serves as the contract administrator for the City’s contract with Travel Portland which provides a portion of collected transient lodging taxes to the organization. Separately, the SVVAF maintains a $55,000 annual contract with Sport Oregon to provide marketing and promotional services to bring sporting events to Portland and the City’s venues. Key Issues Anemic Travel and Tourism Recovery The travel and tourism industry in Portland has yet to fully recover to pre-pandemic levels. While COVID-19 shutdowns and reduced travel caused widespread declines, most peer markets have now fully recovered and surpassed 2019 visitor revenue figures. Until Portland’s hotel occupancy and rates have fully recovered, the revenues generated by transient lodging taxes will remain less than needed to support critical investments in venue operations and infrastructure. Aging Facilities All of the venues in the portfolio are aging. Providence Park turns 100 in 2026, the Veterans Memorial Coliseum is 65, and Moda Center turns 30 this year. As large and

FY 2025-26 Requested Budget Five Year Plan complex facilities age, they require increased investment and periodic major renovation to continue to serve the community. While the stadium has been through several renovations in recent decades, the last major renovation of the west and north sides was completed in 2001, and that part of the stadium will need increased capital and repair spending in the coming years. The Veterans Memorial Coliseum is currently undergoing the first significant renovation in its history, which will address many age- related challenges and greatly extend the life of many of the building’s key systems. However, due to budget constraints, not all of the building’s needs are being addressed, and additional spending will be required to keep the building operating safely and efficiently in the future. Moda Center is positioned to receive sustaining investments from both the SVVAF and the private operators through 2030 under the terms of the new Arena Operating Lease, however, the Portland Trail Blazers have made it clear that a major renovation is required for the arena to continue to be the home of the team for the long term. Major renovation of the arena is likely to cost between $400 and $500 million and is expected to add 20-30 years of useful life to the building. A project of this scale is well beyond the City’s means to fund alone and additional funding sources have not yet been identified. Revenue Assumptions Revenues to the SVVAF are subject to specific terms contained in a series of agreements with the venue operators. The Rose Quarter facilities are operated by Rip City Management and Providence Park is operated by Peregrine Sports, LLC. The revenue arrangements vary significantly between the different venues according to the terms of the applicable agreements. Over 70% of SVVAF revenues come from Rose Quarter operations including ticket user fees and parking fees. These revenues are dependent on the performance of the Rose Quarter Venues: number of events held at the Moda Center and VMC, price and number of tickets sold, number of patrons parking in City garages. Fewer events, lower attendance, lower ticket prices, or less parking in the garages all impact revenues. Since the resumption of events in 2021, revenues to the SVVAF have fully recovered and surpassed pre-pandemic levels. However, considering the unpredictability of the sports and entertainment industry, good recent financial performance does not guarantee similar future revenues. COVID-19 and the prolonged closure of the venues proved this point to the extreme. The introduction of a new Women’s National Basketball Association franchise in summer 2026 will generate additional revenues to the program from ticket user fees and parking. Since attendance and ticket pricing are unknown at this point, it is difficult to project revenues. To prepare for potential unexpected and rapid declines in revenues, the Program takes a conservative approach in estimating future revenues. Future revenue growth assumptions are based not on revenues from the most recent years, but rather on an

FY 2025-26 Requested Budget Five Year Plan analysis done looking at historic growth rates in both user fees and parking revenues over a longer period, including some more lackluster years (although the COVID-19 year is removed from the calculation). This approach and the maintenance of a minimum operating reserve (estimated to be enough to cover program expenses and debt service in a year with no event revenues) is intended to protect the City’s General Fund from any obligation to cover the debt payments or other obligated expenses related to the venues. In 2017, after the first seven years of the Stadium Operating Agreement term, the annual License Payment and City’s minimum share of ticket revenue required of Peregrine Sports are treated as reimbursement for pre-payment by Peregrine Sports for their contribution to the FY 2010-11 renovation project costs and these payments to the City terminated. Revenues from events at the stadium are not anticipated to be enough to cover City costs for the remainder of the operating term (through 2035) and revenues from other sources will be used to fully meet obligations, however, re-introduction of large concerts to the stadium has the potential to improve the City’s financial position at the stadium, and after debt service associated with the 2010 renovations is retired in FY2026-27, revenues from the stadium may cover costs in some years. In addition to supporting debt service on future renovation projects at the VMC and the Portland’5, the Visitor Facilities Intergovernmental Agreement includes an allocation (from dedicated transient lodging taxes and vehicle rental fees) for the City’s Rose Quarter properties and other tourism related programs and services. This annual allocation was $590,000 in FY 2019-20 and escalates annually based on changes in the construction price index. Due to COVID-19 and subsequent declines in transient lodging tax revenues to the Visitor Facilities Trust Account, this allocation was reduced by 80% in FY 2020-21 and is expected to see an ongoing reduction of 10% in FY2025-26. The Visitor Facilities Intergovernmental Agreement also includes an annual payment of $4.3 million, 100% of the debt service on the VMC Renovation Bonds, which were issued in March 2024. The VMC Renovation Bond sale generated $53.4 million in proceeds which will earn an estimated $3 million in interest income during the time between sale and being fully invested into capital projects at the facility. All proceeds and interest are required by the bond issuance to be invested into eligible capital projects at the facility. Expenditure Assumptions Expenses to the SVVAF and service level assumptions are subject to terms and conditions contained in a series of agreements with the venue operators and are largely impacted by the City’s obligations to pay for specified costs, debt obligations and program personnel costs. The forecast assumes continued gradually escalating costs for required repairs and replacements at the Veterans Memorial Coliseum and Providence Park as well as the new requirement for 2025-26 to invest all City revenues generated by Trail Blazers basketball games into specified projects at the Moda Center. Note that this investment

FY 2025-26 Requested Budget Five Year Plan requires a 1:1 financial match from the private operators. Major bond-funded renovations at the Veterans Memorial Coliseum were begun in 2024 and are continuing in 2025. This work is primarily funded by $53 million in City bonds for which all debt service is paid from the Visitor Facilities Trust Account. The renovation project should help control ongoing operational and repair costs and improve profitability. Administrative spending at the Rose Quarter has been higher than average for the past year as the program took on significant legal and expert consulting fees associated with updating and renegotiating the Rose Quarter Agreements. With the approval of the new Arena Operating Lease for Moda Center, that work is expected to subside in 2025-26, although because the current lease expires in 2030, if not extended, it is likely to pick up again during the five-year plan period. In addition, the program is supporting significant design costs associated with the Veterans Memorial Coliseum renovations. This work will continue into FY 2025-26 before tapering off before FY 2026-27. Administrative costs at Providence Park cover ongoing participation in repair and replacement activities as required under the Stadium Operating Agreement. These costs are growing as the older part of the stadium approaches 100 years old and 25 years since a major renovation. The SVVAF forecast includes costs related to implementation of the ADA Transition Plan at Providence Park, but not at the Veterans Memorials Coliseum where the renovation project is anticipated to address the majority of the identified ADA barriers. Given its relatively young age, Moda Center is anticipated to have few ADA barriers, but it has not yet been surveyed. Note that administrative responsibility for the City’s performing arts venues was reassigned from the Spectator Program to the City Arts Program in early 2024. Expenditures associated with the performing arts facilities are not reflected in the proposed 2025-26 Spectator Venues and Visitor Activities budget. All bonded debt obligations associated with the original Rose Quarter developments were paid off in 2016-17, but the SVVAF will continue to make annual stadium bond debt payments associated with the 2010-11 renovations. According to current schedules, the final payments on the stadium bonds will be made in FY 2026-27. In FY2024-25, the SVVAF began making debt service payments on the VMC Renovation Bonds, but the full amount of these payments will be covered by payments from the Visitor Activities Trust Account in accordance with the Visitor Facilities Intergovernmental Agreement.

FY 2025-26 Requested Budget Five Year Plan Expenditure Risks to the Forecast and Confidence Level COVID-19 The pandemic demonstrated that the factors determining revenues to the SVVAF are highly dependent on forces well outside the City’s control. While the event-closures are behind us, any new event requiring closure of the venues would negatively impact projected revenues and alter the forecast. Volatility in the industry The sports and entertainment industry is unpredictable and subject to significant fluctuation due to trends and issues well beyond the City’s control. Key factors to consider in predicting revenues to the SVVAF include:  The overall performance of the Portland Trail Blazers including the team’s ability to win games, support higher ticket prices, and consistently fill the Moda Center. Playoff games generate additional revenues. If fewer games are played for any reason, such as an NBA players’ strike, or changes to the NBA schedule, revenue to the fund is reduced. The same is true for the Portland Winterhawks, Portland Timbers, and Portland Thorns, but on a much smaller scale.  The number of major concerts that come to Portland and choose to play at one of the program’s venues has a major impact on revenues to the SVVAF. A single popular concert that sells out the Moda Center at high ticket prices can generate over $100,000 in user fees alone. The number of major concerts in a given year can fluctuate significantly.  A prolonged economic recession would impact attendance and ticket prices at events as people seek to reduce discretionary expenses. Historically, spending on entertainment is among the first to see reductions in an economic downturn and one of the last to recover. Unexpected Major Repairs The stadium will turn 100 years old in 2026, and while it has undergone three major renovations during the past 25 years, parts of it remain antiquated. The Veterans Memorial Coliseum is 65 years old and while the renovation will address many issues, it remains an old building with some original systems that will not be addressed within the budget of the renovations. With venues like this in the portfolio, there is always the potential to experience unexpected and costly equipment failures or other emergency repairs, and under the terms of the agreements, the SVVAF is generally responsible and obligated to perform them. Overall, the risks to both revenue and expenditures for the SVVAF are significant and largely dependent on factors outside of the City’s direct control. As a result, confidence in the accuracy of the five-year forecast is low.

FY 2025-26 Requested Budget Five Year Plan Spectator Venues and Visitor Activities FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources CY Estimate Plan Plan Plan Plan Plan Beginning Fund Balance 76,138,167 47,000,000 12,466,966 7,673,862 10,356,071 14,135,262 Charges for Services 10,703,400 11,526,890 11,663,627 11,900,176 12,346,116 12,803,421 Intergovernmental 424,000 531,000 531,000 700,000 1,500,000 1,537,500 Miscellaneous 1,560,000 1,200,000 500,000 380,000 450,000 560,000 Resource Total 88,825,567 60,257,890 25,161,593 20,654,038 24,652,187 29,036,183 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Expenditures ` Plan Plan Plan Plan Plan Personnel 634,287 677,743 698,075 719,018 740,588 762,806 External Materials and Services 8,213,100 7,895,890 2,590,145 3,100,912 3,058,550 3,262,711 Internal Materials and Services 876,285 868,082 904,541 941,929 980,234 1,020,097 Capital Outlay 34,728,112 35,054,000 10,000,000 5,500,000 5,700,000 5,800,000 Debt Service 3,262,700 3,261,825 3,260,250 - - - Fund Transfers - Expense 32,101 33,384 34,719 36,108 37,552 39,055 Contingency 41,078,982 12,466,966 7,673,862 10,356,071 14,135,262 18,151,515 Expense Total 88,825,567 60,257,890 25,161,593 20,654,038 24,652,187 29,036,183

Planned FTE Total 3.00 3.00 3.00 3.00 3.00 3.00

Parent: CommEcDev---FYFP-Combined · ← Part 1 · Part 3 →