CommEcDev---FYFP-Combined — Intro — Part 5 of 6

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Financial Summary Total Resources and Requirements Revision Requested Forecast Forecast Forecast Forecast Willamette Industrial TIF Fund FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources Beginning Fund Balance 4,405,601 494,002 410,236 323,957 235,090 173,523 Revenue Interest on Investments 132,168 8,234 5,721 3,133 923 - Total Revenue 132,168 8,234 5,721 3,133 923 - Total Resources 4,537,769 502,236 415,957 327,090 236,013 173,523 Requirements Expenditures Property Redevelopment 4,018,722 34,826 46,000 46,000 31,245 31,245 Total Expenditures 4,018,722 34,826 46,000 46,000 31,245 31,245 Transfers 25,045 57,174 46,000 46,000 31,245 31,245 Contingency 494,002 410,236 323,957 235,090 173,523 111,033 Ending Balance - - - - - - Total Requirements 4,537,769 502,236 415,957 327,090 236,013 173,523 The Willamette Industrial TIF Fund was created in 2004 to support industrial development in Portland's industrial waterfront. Approximately $4 million in TIF proceeds remain. The resources are budgeted in the current fiscal year however there is no current commitment for the resources.

Financial Summary Total Resources and Requirements Revision Requested Forecast Forecast Forecast Forecast Business Mgt Fund FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources Beginning Fund Balance 5,322,320 7,566,211 7,813,044 8,069,061 8,335,718 8,613,408 Revenue Interest on Investments 159,670 246,833 256,017 266,657 277,690 - Property Income 149,050 - - - - - Reimbursements 115,900 - - - - - Transfers In 3,683,000 - - - - - Total Revenue 4,107,620 246,833 256,017 266,657 277,690 - Total Resources 9,429,940 7,813,044 8,069,061 8,335,718 8,613,408 8,613,408 Requirements Expenditures Property Redevelopment 1,263,449 - - - - - Total Expenditures 1,263,449 - - - - - Transfers 600,280 - - - - - Contingency 7,566,211 7,813,044 8,069,061 8,335,718 8,613,408 8,613,408 Ending Balance - - - - - - Total Requirements 9,429,940 7,813,044 8,069,061 8,335,718 8,613,408 8,613,408 The Business Management Fund serves as an operating fund to manage business‐like activities. Most investment activities including property management outside of TIF districts will be managed by the Strategic Investment Fund going forward. Residual cash in the Business Mgt Fund is reserved for short‐term interfund loans to support cash flow needs for federal, state, and local grants and contracts that are managed on a reimbursement basis.

Financial Summary Total Resources and Requirements Revision Requested Forecast Forecast Forecast Forecast Strategic Investment Fund FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources Beginning Fund Balance 53,080,686 38,224,116 33,912,912 28,806,113 19,055,667 12,476,046 Revenue Fees and Charges 50,000 50,000 50,000 50,000 - - Interest on Investments 1,021,578 345,287 305,905 244,966 160,796 - Loan Collections 2,564,055 3,488,844 6,265,724 1,195,359 1,058,544 - Property Income 146,511 - - - - - Reimbursements 22,570 - - - - - Transfers In 4,900,371 4,100,670 - - - - Total Revenue 8,705,085 7,984,801 6,621,629 1,490,325 1,219,340 - Total Resources 61,785,771 46,208,917 40,534,541 30,296,438 20,275,007 12,476,046 Requirements Expenditures Economic Development 7,598,637 2,160,000 2,332,343 1,312,656 871,565 275,953 Property Redevelopment 14,961,064 9,290,824 8,627,335 9,140,147 6,119,727 4,551,906 Total Expenditures 22,559,701 11,450,824 10,959,678 10,452,803 6,991,292 4,827,859 Transfers 1,001,954 845,181 768,750 787,968 807,669 827,859 Contingency 38,224,116 33,912,912 28,806,113 19,055,667 12,476,046 6,820,328 Ending Balance - - - - - - Total Requirements 61,785,771 46,208,917 40,534,541 30,296,438 20,275,007 12,476,046 The Strategic Investment Fund was created in 2023 as part of the Financial Sustainability Plan to provide a revolving pool of capital for small business and commercial development loans as well as potential real estate investments. In addition to providing for a citywide source of access to capital, investments are intended to earn a return that helps support Prosper's overall operating budget. In FY 2023‐24, the fund was created by transferring $45 million in earned income (program income) from terminating TIF district funds. Over $10 million in loans were placed in 2024 supporting small businesses, commercial development projects and middle‐income housing. Loan collection forecasts include principal and interest from the current loan portfolio and do not include prospective loans in the pipeline. Therefore, the forecast may increase in future years as additional loans are made.

Financial Summary Total Resources and Requirements Revision Requested Forecast Forecast Forecast Forecast General Fund FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources Beginning Fund Balance 5,204,307 1,194,515 2,110,928 6,891,511 9,185,528 11,460,252 Revenue City General Fund & Cannabis Fund 25,086,220 15,805,030 16,200,156 16,605,160 17,020,289 17,445,796 Fees and Charges 2,041,524 525,000 500,000 500,000 500,000 - Grants - State & Local 959,270 80,000 - - - - Interest on Investments 79,738 - - - - - Miscellaneous 540,000 50,000 50,000 50,000 50,000 50,000 Service Reimbursements 11,476,618 12,834,505 12,962,613 12,602,416 12,855,378 11,810,779 Transfers In 2,949,954 950,000 - 191,668 191,668 191,668 Total Revenue 43,133,324 30,244,535 29,712,769 29,949,244 30,617,335 29,498,243 Total Resources 48,337,631 31,439,050 31,823,697 36,840,755 39,802,863 40,958,495 Requirements Expenditures Administration 12,787,755 12,811,564 8,182,030 10,500,067 10,772,322 11,067,065 Economic Development 20,993,535 10,855,524 11,463,633 11,736,474 12,016,136 11,802,789 Property Redevelopment 7,504,039 827,423 - - - - Total Expenditures 41,285,329 24,494,511 19,645,663 22,236,541 22,788,458 22,869,854 Transfers 5,857,787 4,833,611 5,286,523 5,418,686 5,554,153 5,693,007 Contingency 1,194,515 2,110,928 6,891,511 9,185,528 11,460,252 12,395,634 Ending Balance - - - - - - Total Requirements 48,337,631 31,439,050 31,823,697 36,840,755 39,802,863 40,958,495 General Fund includes City General Fund and Recreational Cannabis Tax Fund reimbursed from the City of Portland for citywide economic development activities. Also included are central administrative costs for all agency operations funded by overhead transfers from all other funds.

Financial Summary Total Resources and Requirements Revision Requested Forecast Forecast Forecast Forecast Internal Service Fund FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources Beginning Fund Balance - 4,299 8,727 13,287 17,984 22,822 Revenue Interest on Investments 4,299 4,428 4,560 4,697 4,838 - Total Revenue 4,299 4,428 4,560 4,697 4,838 - Total Resources 4,299 8,727 13,287 17,984 22,822 22,822 Requirements Expenditures Total Expenditures - - - - - - Contingency 4,299 8,727 13,287 17,984 22,822 22,822 Ending Balance - - - - - - Total Requirements 4,299 8,727 13,287 17,984 22,822 22,822 The Internal Service Fund serves as the Risk Management Fund for Prosper Portland from which general deductibles and other insurance payments can be made.

Financial Summary Total Resources and Requirements Revision Requested Forecast Forecast Forecast Forecast ACT Fund FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources Beginning Fund Balance 517,012 15,691 - - - - Revenue Total Revenue - - - - - - Total Resources 517,012 15,691 - - - - Requirements Expenditures Property Redevelopment 501,321 15,691 - - - - Total Expenditures 501,321 15,691 - - - - Contingency 15,691 - - - - - Ending Balance - - - - - - Total Requirements 517,012 15,691 - - - - Affordable Commercial Tenanting (ACT) Fund receives fees paid by developers. Fee income can be reinvested into the community in the form of grants to support affordable commercial tenanting goals. Fee income is not forecasted given the low volume and uncertainty of the revenue.

Financial Summary Total Resources and Requirements Revision Requested Forecast Forecast Forecast Forecast Ambassador Program Fund FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources Beginning Fund Balance 13,000 - - - - - Revenue Total Revenue - - - - - - Total Resources 13,000 - - - - - Requirements Expenditures Economic Development 13,000 - - - - - Total Expenditures 13,000 - - - - - Ending Balance - - - - - - Total Requirements 13,000 - - - - - The Ambassador Program Fund includes funds donated to support Prosper Portland organized events and activities supporting Economic Development including trade missions.

Financial Summary Total Resources and Requirements Revision Requested Forecast Forecast Forecast Forecast American Rescue Plan Act Fund FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources Beginning Fund Balance 776,018 - - - - - Revenue Grants - Federal except HCD 2,771,768 - - - - - Total Revenue 2,771,768 - - - - - Total Resources 3,547,786 - - - - - Requirements Expenditures Economic Development 2,537,023 - - - - - Property Redevelopment 214,763 - - - - - Total Expenditures 2,751,786 - - - - - Transfers 796,000 - - - - - Ending Balance - - - - - - Total Requirements 3,547,786 - - - - - ARPA resources will be fully expended in FY 2024‐25 and therefore not included in future years.

Financial Summary Total Resources and Requirements Revision Requested Forecast Forecast Forecast Forecast COEP Fund FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources Beginning Fund Balance 397,928 - - - - - Revenue Fees and Charges 2,563,268 2,375,000 2,375,000 2,375,000 2,375,000 2,375,000 Total Revenue 2,563,268 2,375,000 2,375,000 2,375,000 2,375,000 2,375,000 Total Resources 2,961,196 2,375,000 2,375,000 2,375,000 2,375,000 2,375,000 Requirements Expenditures Economic Development 2,542,092 2,248,014 2,250,000 2,250,000 2,250,000 2,250,000 Total Expenditures 2,542,092 2,248,014 2,250,000 2,250,000 2,250,000 2,250,000 Transfers 419,104 126,986 125,000 125,000 125,000 125,000 Ending Balance - - - - - - Total Requirements 2,961,196 2,375,000 2,375,000 2,375,000 2,375,000 2,375,000 The Community Opportunities and Enhancements Program (COEP) is a City of Portland strategy to increase diversity and equity in construction contracting. The goals of COEP are to increase the number of people of color and women in the trades and to remove barriers for construction firms owned by people of color and women so that they can successfully participate in public contracting. The program is funded by a 1% set‐ aside of eligible costs on all City‐owned public improvement contracts. Through a series of grants, COEP will provide workforce development and business technical assistance to accomplish its goals. Funding represents estimated, ongoing intergovernmental agreements with the City of Portland based on the 1% set aside.

Financial Summary Total Resources and Requirements Revision Requested Forecast Forecast Forecast Forecast Enterprise Zone FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources Beginning Fund Balance 5,393,098 4,609,740 3,576,694 2,550,793 1,512,619 497,018 Revenue Fees and Charges 396,348 133,439 174,735 194,725 173,864 155,760 Interest on Investments 161,793 101,729 73,974 43,677 13,737 - Loan Collections 36,857 28,416 - - - - Total Revenue 594,998 263,584 248,709 238,402 187,601 155,760 Total Resources 5,988,096 4,873,324 3,825,403 2,789,195 1,700,220 652,778 Requirements Expenditures Economic Development 1,312,077 1,260,560 1,235,305 1,236,288 1,161,906 610,451 Total Expenditures 1,312,077 1,260,560 1,235,305 1,236,288 1,161,906 610,451 Transfers 66,279 36,070 39,305 40,288 41,296 42,327 Contingency 4,609,740 3,576,694 2,550,793 1,512,619 497,018 - Ending Balance - - - - - - Total Requirements 5,988,096 4,873,324 3,825,403 2,789,195 1,700,220 652,778 The Portland Enterprise Zone exists primarily to incentivize firms by offering local property tax exemptions to invest in new construction and personal property and to create quality jobs. The E‐Zone geography has evolved over time, most recently with the 2023 addition of areas of downtown Portland, encouraging firms to invest in growth in core business districts and revitalize the Central City. Revenue is generated through fees and payments in lieu of taxes from participating companies. The forecast includes modest increases in fee activity in the five years.

Financial Summary Total Resources and Requirements Revision Requested Forecast Forecast Forecast Forecast HCD Contract Fund FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources Beginning Fund Balance 461,415 - - - - - Revenue Grants - HCD Contract 2,180,932 2,148,627 2,041,196 1,939,136 1,842,179 1,750,070 Total Revenue 2,180,932 2,148,627 2,041,196 1,939,136 1,842,179 1,750,070 Total Resources 2,642,347 2,148,627 2,041,196 1,939,136 1,842,179 1,750,070 Requirements Expenditures Economic Development 2,181,347 2,148,627 2,041,196 1,939,136 1,842,179 1,750,070 Total Expenditures 2,181,347 2,148,627 2,041,196 1,939,136 1,842,179 1,750,070 Transfers 461,000 - - - - - Ending Balance - - - - - - Total Requirements 2,642,347 2,148,627 2,041,196 1,939,136 1,842,179 1,750,070 HCD Contract Fund includes Economic Opportunity Initiative funding from the City's Community Development Block Grant (CDBG). Funding is paired with City General Fund to deliver on workforce and small business technical assistance. The forecast assumes continued decreases in federal funding based on appropriations and allocation.

Financial Summary Total Resources and Requirements Revision Requested Forecast Forecast Forecast Forecast Other Federal and State Grants FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources Beginning Fund Balance 1,683,046 842,546 845,821 845,418 839,433 531,121 Revenue Grants - State & Local 12,000,000 6,000,000 - - - - Interest on Investments 49,768 20,174 20,217 20,122 15,477 - Loan Collections 337,053 305,444 302,025 297,103 - - Total Revenue 12,386,821 6,325,618 322,242 317,225 15,477 - Total Resources 14,069,867 7,168,164 1,168,063 1,162,643 854,910 531,121 Requirements Expenditures Economic Development 1,195,261 300,300 300,050 300,050 300,050 - Infrastructure 12,000,000 6,000,000 - - - - Total Expenditures 13,195,261 6,300,300 300,050 300,050 300,050 - Transfers 32,060 22,043 22,595 23,160 23,739 24,332 Contingency 842,546 845,821 845,418 839,433 531,121 506,789 Ending Balance - - - - - - Total Requirements 14,069,867 7,168,164 1,168,063 1,162,643 854,910 531,121 Other Federal and State Grants include project and program specific grants. Most of the funding is for state transportation grants supporting the OMSI Master Plan and Broadway Corridor.

Financial Summary Total Resources and Requirements Revision Requested Forecast Forecast Forecast Forecast PCEF Fund FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources Revenue Fees and Charges 8,500,000 10,275,000 8,500,000 8,500,000 8,500,000 4,250,000 Total Revenue 8,500,000 10,275,000 8,500,000 8,500,000 8,500,000 4,250,000 Total Resources 8,500,000 10,275,000 8,500,000 8,500,000 8,500,000 4,250,000 Requirements Expenditures Economic Development 886,415 1,750,000 705,422 707,640 700,000 350,000 Property Redevelopment 6,757,947 7,419,574 6,572,289 6,521,180 6,477,972 2,539,634 Total Expenditures 7,644,362 9,169,574 7,277,711 7,228,820 7,177,972 2,889,634 Transfers 855,638 1,105,426 1,222,289 1,271,180 1,322,028 1,360,366 Ending Balance - - - - - - Total Requirements 8,500,000 10,275,000 8,500,000 8,500,000 8,500,000 4,250,000 Portland Clean Energy Fund (PCEF) represents $42 million five‐year IGA between Prosper Portland and PCEF to deploy funding that supports energy efficiency grants and loans for small businesses and commercial development. Programs are paired with other grants, loans and small business support via other funding sources to support Advance Portland goals. Funding for FY 2029‐30 includes an estimate of unspent funds in the current year's budget (to be updated at a future date); however there is no agreement in place for that year.

Portland Housing Bureau FY 2025-2030 Five-Year Financial Forecast Overview The Portland Housing Bureau (PHB) is dedicated to providing affordable housing in the City of Portland through various restricted funding sources. However, with the Portland Housing Bond and the Metro Affordable Housing Bond fully allocated and set to be completely expended within the next two fiscal years, PHB faces a challenging landscape. The already limited resources for affordable housing production are further strained by rising interest rates, and labor, material, and real estate costs. PHB's primary challenge over the next five years is to sustain affordable housing delivery levels and preserve existing affordable units amidst significant resource reductions. Federal entitlement grants (CDBG/HOME/HOPWA/ESG) and PCEF dollars, as explained below, are crucial to continuing this work until the six new TIF districts in Central City and East Portland, adopted in October 2024, generate sufficient funding, which is estimated to take between five to ten years. Tax Increment Funding PHB’s financial history has been defined by Tax Increment Funding (TIF) via the Council-approved affordable housing set-aside. The first steep drop in TIF resources foreshadowed a “TIF Cliff,” which the Bureau estimated would bottom out in FY 2016-17. Caused by declines in property values during the 2008 recession, this drop led to significant staffing reductions at both Prosper Portland and PHB in FY 2010-11. The economic recovery after 2008, in addition to an increase from 30% to 45% in the housing set-aside in 2015 (the “TIF Lift”), fully mitigated the first TIF Cliff. TIF revenue has been consistently high for the past four years, but PHB has been forecasting another more permanent downturn for the mid-2020s; that downturn is now solidly in the five-year forecast window. Aside from the new Cully TIF district, three TIF districts have reached maximum indebtedness, and the remainder are nearing their final years to issue debt. The City Council recently approved new six TIF districts in Central City and East Portland that will provide funding for housing programs to compensate for the funding gap created by the expiring TIF and Bonds resources. Future Resources In the absence of more TIF and the expiration of both the City and Metro Affordable Housing Bonds, there will be a reduction to pre-TIF Lift multi-family project gap financing, acquisition, and homeownership programs. Homeownership programs will be heavily impacted, losing as much as two-thirds of their base funding. This new level of bureau resources is now visible in the 5-year forecast. PHB collaborated with the Bureau of Planning and Sustainability to allocate $60 million in Portland Clean Energy Funds over 5 years for energy efficiency and renewable energy enhancements in newly regulated, multi-family affordable housing. $29 million is budgeted for FY25-26 covering clean energy projects, staffing, and administrative expenses. An additional $40 million over 5 years ($8 million per year) Decision Package was approved in FY24-25 onwards and aims to support energy upgrades in approximately 300 units alongside other PHB-funded capital improvements. Starting in FY25-26, PHB will start receiving the full returning TIF funds as General Fund (GF) Discretionary allocation. The increase in GF's ongoing allocation will help the bureau address the funding gap created by expiring TIF and bond resources to cover operational costs besides providing funding for the Homeownership program. The Returning TIF Set-aside is necessary for the bureau to deploy funds for crisis response and community stabilization, deliver programs, and retain operational capacity as TIF declines and slowly rebuilds. Additionally, the resources will help convene partners to meet the housing needs of Portland's residents, including those more vulnerable as Communities of Color.

Parent: CommEcDev---FYFP-Combined · ← Part 4 · Part 6 →