PDC’s budget

Yes, I know, we have other things to think about today. But regardless of the vote tally tonight on Charter changes, the Council will make decisions tomorrow on the City’s nearly $3 billion budget. It’s very unfortunate so much time has had to be spent trying to get voters aware of the issues buried in the ballot measures, at the same time the City’s budget was being planned.

One large chunk of tax, fee, and grant funds is spent under the oversight of the Portland Development Commission (PDC). I think it’s particularly sad that Portlanders are voting on the governance of PDC today, when most of us have at best a vague understanding of what the agency is and does. I include myself in “us”, there. For instance, how many citizens can state (without looking it up), how many adopted urban renewal areas Portland has, name them, and point to them on a map? OK, you can look now. There are eleven. I rest my case. Well done, those who knew before following the link.

A committee with City Commissioners Sten and Saltzman, and PDC Board members Charles Wilhoite and Mark Rosenbaum, met last month to review budget proposals collaboratively. Multnomah County Board members Ted Wheeler and Jeff Cogan, a representative from Portland Community College and one from the David Douglas School District also participated in the meeting. Portland Public Schools sent a written memorandum only. The following are notes on what was discussed, with editorial comments by me inserted in brackets/italics.

Some important information was shared about plans the City Council and Development Commission members are considering for the future:

1. Extending the Central Eastside urban renewal area again, by two years, to access another $20 million for the streetcar and the community center on the Washington-Monroe High School site.

2. Extending two Downtown urban renewal areas – Downtown Waterfront and South Park Blocks – for two years, to 2010.

3. Intent to “Exercise restraint” on issuing debt in the Willamette Industrial district. This district was created because the City hoped Wacker Siltronic would expand, but that didn’t happen. The current thinking is it may be desirable to have the ability to close out that district if it’s going nowhere. [Some community members, particularly the League of Women Voters of Portland, testified beforehand that the district shouldn’t have been created until it was certain Siltronic was coming.]

Notes pertaining to tomorrow’s budget, from the meeting in mid-April:

* Jeff Cogen of Multnomah County said 25 – 30 cents of each dollar going to urban renewal would have gone to the County to fund public services. He also said
the County shouldn’t be guests at meetings between the City Council and Portland Development Commission members, rather the County should be full partners. The group later decided the County should have a seat on the committee.

* Mark Rosenbaum of PDC projected a need to do $20 – $40 million upgrades of Union Station; also, $15 million is set aside in case the main Post Office on NW Hoyt decides to move (perhaps to the airport – more on this in another post soon).

* Bruce Warner, Executive Director of the Portland Development Commission agency, talked about some huge infrastructure projects that are unfunded or underfunded, such as the desired streetcar on the east and west sides, Burnside-Couch couplets on both sides of the river, etc. The Budget at that point allocated $9 million, while they will cost at least $31 million. [One reason politicians and bureau directors like big transportation projects is because those are the kinds of things the federal governement is more likely to fund, rather than people-centered consumer programs like housing and health care. But the federal money requires a local match – Portland has to pony up some of the money to get the rest from the feds.] The national grants need a decision by August for the east side streetcar. Mayor Potter has asked Bruce Warner and Ken Rust (the City’s Director of Management and Finance) to look at all major infrastructure projects, including light rail to Milwaukee, and put a price tag on them.

* Ted Wheeler said he wanted to take a step back – tour down history lane. He first said that he’s pleased there seems to be a new attitude at the City and PDC and thanked them for their help on moving the freeway ramps for the new courthouse. The County is making a significant contribution to urban renewal – they won’t be getting $16 million this year because of it. The County budget shows a $15 million shortfall in meeting current service levels. He has broad concerns about the decision-making process. He’s disturbed by the use of urban renewal funds for projects that used to be paid for by city funds. He suggested meeting to figure out core priorities, such as kids, schools, libraries. He advocated for developing a formal City-County Intergovernmental Agreement (IGA) outlining plans for spending money raised in Urban Renewal Areas.

* Dan Saltzman responded that he supports moving to a new way of doing things, and wants to help on the Intergovernmental Agreement.

* Courtney Wilton of the David Douglas School district outlined their district’s concerns. Properties in east Portland tend to have lower assessed value, so when they issue bonds it takes a bigger hit from each taxpayer. They are doing as well as others in meeting operational needs, but have big problems on the capital side. The district is finishing up a $40 million bond passed in 2002, and even so they are at capacity in their buildings. They have parts of two Urban Renewal Areas in their district – Gateway and Lents. It will be a very long time before the School Districts see any return from increases in assessed value from those districts, since first the project must run and expire, then the bonded indebtedness has to be paid off. David Douglas schools would be helped with more stable, affordable housing – many of their kids move around a lot. They would like more say in how money is spent in their area, and especially to see investments in living wage jobs.

Representatives from the County noted it is extremely important where affordable housing is built, since that affects the County’s ability to provide services to the residents.

Participants also discussed a couple of potential capital improvement projects, such as a new Multnomah County courthouse. [The current one is not at all earthquake safe and would cost more to retrofit than replace.] It was suggested a small, new Urban Renewal Area – a few blocks – could be formed to help fund that project. [Hey, here’s an idea – if something is the Right Thing to do, how about just prioritize it in the overall City/County budgets, and choose to fund it rather than putting up all the red tape of a new Urban Renewal Area?]

Attached is the 41-page pdf file with all the details of the proposed PDC budget submitted to the Council, in case anyone is interested. The Portland Development Commission’s work and funding isn’t something we should stop talking about once the result of Measure 26-92 is known, whether it passes or fails.