adopted resolution

Adopt amended Council Impact Statement to include economic impact analysis of any proposed regulatory changes

budget finance
economic development
resolution

Department: Prosper Portland City Budget Office
Introduced by: Former Mayor Ted Wheeler Former Commissioner Carmen Rubio
Status: Adopted

Impact statement

Purpose & background

On April 26, 2023, through Resolution 37617, City Council adopted ‘Advance Portland: A Call to Action for Inclusive Economic Growth’ (Advance Portland), a City-wide economic development strategy that sets forth the goal for Portland to advance inclusive growth through interventions that advance competitiveness, racial equity, and climate action over the next five years. Advance Portland calls for “addressing barriers to growth, inclusion, or innovation in competitive industries,” by, among other actions, “improving the tax-value proposition moving forward by requiring an economic impact analysis of all new policies, regulation, fees, charges, or taxes referred to voters from the perspective of private parties who will bear the costs.” It further calls for “catalyzing public-private partnerships to unlock infill development of large scale mixed-use, mixed-income sties with high transit accessibility” by “requiring an economic impact analysis of any proposed regulatory changes to quantify impacts to near-term development feasibility and longer-term health of the City’s tax base needed to fund important programs and services citywide on balance with policy benefit.” In addition, on November 2, 2022, through Resolution 37593, City Council adopted ‘Establishing key actions to increase affordable housing construction,’ including “assessing the impact of City policies and regulations on the cost of building housing” and “in addition to this assessment, Council and bureaus will explore opportunities to understand the impact of future council legislation on the cost of building housing in Portland.” In the Advance Portland authorizing resolution, City Council directed staff to “recommend a process to evaluate the economic and financial impact of proposed new or revised regulations being considered by City Council.” Staff have identified the “Impact Statement for Requested Council Action” (Impact Statement) section on e-Council as the most immediate opportunity for City Council to scrutinize the economic impacts from proposed actions and are proposing adding a ‘Economic and Real Estate Development Impacts’ section with prompts to guide analysis and completion. Following is the implementation timeline in anticipation of the September 1, 2024, launch: June – July 2024 Prosper Portland convenes Bureau e-Council users/reviewers group for training and onboarding for updated Impact Statement Prosper Portland works with the Bureau of Technology Services (BTS) to update form and manage applicable access and notification changes August 2024 BTS completes updates to e-Council in advance of September 4 City Council meeting review process Prosper Portland confers with the Government Transition Team and Central Council Operating Staffing Group to integrate into the City Charter transition process Prosper Portland provides subject matter expertise and support to Citywide e-Council users September 2024 Updated Impact Statement launches Prosper Portland re-convenes users’ group to share resources, best practices, and ongoing support Prosper Portland confers with Central Council Operating Staffing Group to make process recommendations, if needed

Financial impacts

While there are no immediate, direct financial impacts from this action, there will be a temporary increase in City BTS staff time to update the website code. There will also be an increase in City staff time for those who submit items into e-Council, as they will now be required to complete an additional field. Finally, there will be an ongoing increase in Prosper Portland staff time whose cost is estimated at $45,000 per year to both i.) communicate and coach City staff completing the new Impact Statement section, ii.) weekly track and review items submitted into e-Council, and iii.) provide more in-depth economic impact analysis when necessary. The resolution also directs the Deputy City Administrator for Budget and Finance to “contract with a competent external consultant to evaluate revenue generation and administration costs for any new tax or fee ballot measure referred to voters by the City Council. For purposes of this evaluation, administration costs consist of two parts: 1) collection costs and, 2) programmatic management costs. The consultants shall engage with and consider information provided by the City bureau(s) proposed to administer collections and programmatic management. The cost of the external consultant shall be paid by the bureau responsible for programmatic management.”

Community impacts

Staff has solicited input from the following groups and individuals: Advance Portland City Implementation Team (including representatives from the Budget Office, Transportation, Planning and Sustainability, Housing, Parks, Development Services, Office of Management and Finance, Public Environment Management Office, and Portland Clean Energy Fund) and other City staff Advance Portland Advisory Committee (approximately 30 members representing business and industry, higher education, real estate and construction, economic and community development, lending and investment, and public agencies) A working group comprised of interested members of both above committees Members of City Council through individual briefings Local and state agencies that have implemented similar requirements and analyses Consultants with expertise in quantifying economic and real estate development impacts

▸ Full text (the legislation as adopted)

WHEREAS, on November 2, 2022, through Resolution 37593, City Council adopted ‘Establishing key actions to increase affordable housing construction,’ including, “assessing the impact of City policies and regulations on the cost of building housing” and “in addition to this assessment, Council and bureaus will explore opportunities to understand the impact of future council legislation on the cost of building housing in Portland;” and WHEREAS, o n April 26, 2023, through Resolution 37617, City Council adopted ‘ Advance Portland A Call to Action for Inclusive Economic Growth’ (Advance Portland), a City-wide economic development strategy that sets forth the goal for Portland to advance inclusive growth through interventions that advance competitiveness, racial equity, and climate action over the next five years; and WHEREAS, Advance Portland calls for “addressing barriers to growth, inclusion, or innovation in competitive industries,” by, among other actions, “improving the tax-value proposition moving forward by requiring an economic impact analysis of all new policies, regulation, fees, charges, or taxes referred to voters from the perspective of private parties who will bear the costs;” and WHEREAS, Advance Portland further calls for “catalyzing public-private partnerships to unlock infill development of large scale mixed-use, mixed-income sites with high transit accessibility” by “requiring an economic impact analysis of any proposed regulatory changes to quantify impacts to near-term development feasibility and longer-term health of the City’s tax base needed to fund important programs and services citywide on balance with policy benefit;” and WHEREAS, through Resolution 37617, City Council directed staff to “recommend a process to evaluate the economic and financial impact of proposed new or revised regulations being considered by City Council;” and WHEREAS , s taff have identified the “Impact Statement for Requested Council Action” (Impact Statement) section on e-Council as the most immediate opportunity for City Council to scrutinize the economic impacts from proposed actions and are proposing adding a ‘Economic and Real Estate Development Impacts’ section with prompts to guide analysis and completion; and WHEREAS, the City Budget Office has proposed edits to the ‘Financial and Budgetary Impacts’ section of the Impact Statement to provide greater clarity to City staff’s analysis through revised prompts. NOW, THEREFORE, BE IT RESOLVED, that the Bureau of Technology Services is directed to amend the Impact Statement consistent with the changes noted in Exhibit A; and BE IT FURTHER RESOLVED, that Prosper Portland is directed to review the Economic and Real Estate Development Impacts and provide feedback in a timely manner; and BE IT FURTHER RESOLVED, that the City Budget Office is directed to review the revised Financial and Budgetary Impacts and provide feedback in a timely manner; and BE IT FURTHER RESOLVED, that, prior to Council action on a measure to be referred to the eligible voters that would impose a new tax or fee, Council directs the Deputy City Administrator for Budget and Finance to contract with a competent external consultant to estimate revenue generation, and administration and payer education costs. For purposes of this estimate, administration costs consist of two parts: 1) collection costs and, 2) program management costs. The consultant will engage with and consider information provided by the City bureau(s) proposed to administer collections and manage the program. The cost of the consultant will be paid by the bureau responsible for program management; and BE IT FURTHER RESOLVED, that, for initiative petitions that would impose a new tax or fee that the Auditor determines qualify for placement on the ballot , Council directs the Deputy City Administrator for Budget and Finance to contract with a competent external consultant to estimate the administration and payer education costs. For purposes of this estimate, administration costs consist of two parts: 1) collection costs and, 2) program management costs. The consultant will engage with and consider information provided by the City bureau(s) proposed to administer collections and manage the program. The cost of the consultant will be shared by Budget and Finance and the bureau responsible for program management; and BE IT FURTHER RESOLVED, that, for initiative petitions that would impose a new tax or fee that the Auditor determines qualify for placement on the ballot , Council directs the Deputy City Administrator for Budget and Finance to offer the Chief Petitioner(s) an optional one-to-one matching grant with the City’s contribution capped at $25,000 to pay for a competent external consultant to estimate revenue generation. The City’s matching cost will be paid by the bureau responsible for program management; and BE IT FURTHER RESOLVED, that Prosper Portland, the Bureau of Planning and Sustainability, the City Budget Office, or their successors, and other relevant stakeholders are instructed to coordinate with the City Transition Team to ensure this kind of analysis is contemplated in future Council materials and review processes; and BE IT FURTHER RESOLVED, that, unless another timeline is determined by the Interim City Administrator, the desired full implementation will be September 1, 2024.

Tally

5 yea 0 nay