City Council convenes as Prosper Portland Budget Committee to approve the FY 2024-25 Budget

Portland City Council is convened as the Prosper Portland Budget Committee to receive the FY 2024-25 Budget Message and Proposed Budget and hold a hearing on the Proposed Budget. City Council will vote to approve the Prosper Portland budget, with any amendments on May 15, 2024.

Prosper Portland’s FY 2024-25 Proposed Budget totals $208 million in expenditures and 105 positions, up from 98 positions in FY 2023-24. The Proposed Budget is currently balanced using 1) the latest updates on projects and programs from Tax Increment Financing (TIF) District community action plans, 2) the latest TIF forecasts developed in conjunction with debt management staff at the City Office of Management and Finance, 3) the City Budget Office’s current service level funding of General Fund resources for economic development, and 4) updated estimates for loan portfolio and property income revenues. Prosper Portland’s General Fund, Cannabis Fund, Community Development Block Grant, and Enterprise Zone Funds, along with remaining federal funds from the American Rescue Plan (ARPA), provide critical citywide resources to work toward the goals of Advance Portland. In total $28 million in General Fund, Community Development Block Grant, Cannabis Fund, ARPA, and Enterprise Zone resources are aligned to the Advance Portland objectives. The FY 2024-25 Proposed Budget incorporates the Returning TIF Decision Package and transitions a significant portion of funding for programs and operations from expiring TIF districts to new Returning TIF General Fund resources. Specifically, the Returning TIF decision packages direct $2.6 Million to fund the full cost of current citywide economic development programs; $3 Million to deliver $45M in financial assistance and investment outside of TIF districts, small business tenanting and leasing assistance, and ongoing loan and asset management; and $2 Million for a total of seven positions across the previously one-time supported Office of Events and Film and the newly established Small Business Office. Total additional funding included in the Mayor’s Proposed Budget includes: $1 million in one-time funding to support the Office of Events and Film with a senior position and resources to support events and activities through FY 2024-25, $200 thousand in one-time resources to launch the Small Business Office, $500 thousand in one-time funding for additional small business repair grants, $200 thousand in ongoing funding for a position to engage with large scale, public private partnerships outside of established Tax Increment Finance districts. The staffing increase to 105 positions comes as a result of a small business focused Portland Clean Energy Fund package that includes six new staff who will be deploying over $30 million in resources over the next five-years as well as incorporating the Returning TIF Decision Package and additional one-time and ongoing General Funds included in the Mayor’s Proposed Budget outlined above.

Prosper Portland’s fiscal year 2024‐25 Proposed Budget supports interventions and investments in furtherance of Advance Portland: A Call to Action for Inclusive Economic Growth. The proposed budget will help Portland’s small businesses, traded sector industries and Central City and neighborhood commercial districts to stabilize and grow – through community‐driven, equity‐centered programs like IBRN, Mercatus, My Peoples Market, Portland Means Progress, TIF district action plans, small business grants and loans, and the Neighborhood Prosperity Network. Recognizing the critical need to strengthen diverse small businesses, the budget includes resources for: operating and capital funding for immediate window repair, and longer-term business growth and expansion; helping industry partners to deploy innovative green products and services; and igniting major events to drive foot traffic back and tourism. The FY 2024-25 Proposed Budget also continues to incorporate ongoing Reimagine Oregon and Inclusive Business Resource network funding from the Recreational Cannabis Tax fund. Prosper Portland staff reviewed the FY 2024‐25 Draft Budget with its 14‐member Community Budget Committee (CBC), which met three times over the course of the budget cycle and whose members represent a diverse array of geographic, industry‐sector and community stakeholders. The Prosper Portland Board held a work session on February 1, 2024, to review General Fund programming and TIF district spending plans that were incorporated into the Requested Budget. The Requested Budget became part of the overall Requested Budget submitted by the Community Development Service group with the budgets for the Bureau of Planning and Sustainability, Portland Housing Bureau, and Bureau of Development Services and presented to the Portland City Council on February 13, 2024. Staff also reviewed specific TIF district Requested Budgets with community and neighborhood organizations to receive input. The CBC letter and a summary of TIF district budget outreach is included in the Budget Process section of the Adopted Budget. These partnerships will continue to shape economic development priorities in FY 2024‐25.